| # Financial postings of Invoice Accrual This functionality is specific for India. In Order Management, the tax related amounts and additional charges amounts incurred on a purchase order are not included at the time of purchase order receipt in standard Infor ERP LN. These amounts are added to invoice accrual in Financials for India Localization. Note The additional costs incurred by the main business partner are only added to the invoice accrual. The taxes that are payable to supplier are also added to invoice accrual. Import taxes are not added to invoice accrual. The expensed taxes are added to invoice accrual through integration transaction when you confirm the warehouse receipt. The claimable taxes are added to the invoice accrual after you process the order tax details in the Process Order Tax Details (tfacp9235m00l) session. You must also select Include Tax Component in Invoice Accrual check box in the ACP Parameters (tfacp0100s000) session to add tax amounts to invoice accrual. In the below example, the postings are explained with an example. The tax related ledger accounts are defined the Posting Data for Tax Codes (tfgld0171s000) session. The Accounts payable control account is defined in the Accounts by Financial BP Group (tfacp0110m100) session, and Invoice accrual is defined for integration transactions, in the Mapping Scheme (tfgld4573m000) session.
Details | Receipt | Invoiced
Order | 1000 | 1000
ACR (actual claimable tax at receipt) for example, BED | 100 | 100
AER (actual expensed tax at receipt) for example, CST | 200 | 200
ECR (Estimated claimable tax at receipt) for example, VAT | 300 | 310
EER (Estimated expensed tax at receipt) for example, BED | 400 | 405
Other charges 1 for example, transport | 25 | 25
Other charges 2 for example, package | 30 | 30
GRNI (Invoice accrual) = Base amount + other charges of main business partner + expensed tax amount + claimable taxes (processed through order tax details) The following are the tax postings of invoice accrual: Step 1. Purchase order approval. When purchase order is approved in Order Management.
IDT 10001060 Purchase order
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Goods to be received | INR 1055 | End Account 104
Credit | Purchase commitments | INR 1055 | End Account 113
Step 2. Confirm Purchase Receipt Infor ERP LN creates the integration transaction when you confirm the purchase receipt
IDT 10001074 purchase order receipt
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Interim Transit -General | INR 1655 | interim transit 1
Credit | Invoice Accrual -purchase order receipt | INR 1655 | Invoice accrual 3
Step 3. Confirm Warehouse receipt Infor ERP LN creates the integration transaction when you confirm the receipt in Warehouse Management.
IDT 10061086 Warehouse receipt
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Inventory | INR 1655 | inventory 1
Credit | Invoice accrual -receipts invoiced | INR 1655 | invoice accrual 12
Step 4. Process order tax details After tax order details are processed in the Process Order Tax Details (tfacp9235m00l) session, following postings are generated.
For actual claimable at receipt amounts
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Tax Account(Actual claimabe at receipt) | INR 100 | not applicable
Credit | Invoice Accrual | INR 100 | invoice accrual 12
For estimated claimable at receipt amounts
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Tax clearing account(Estimated claimable at receipt) | INR 300 | not applicable
Credit | Invoice accrual | INR 300 | invoice accrual 12
Step 5. Register purchase invoice At invoice registration or matching
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Registered purchase invoices | INR 1055 | not applicable
Debit | Invoice accrual (Claimable amounts 300 + 100) | INR 400 | Invoice accrual 3
Debit | Tax clearing account (Tax expensed at receipt) | INR 200 | not applicable
Debit | Purchase tax account (tax claimable at invoice) | INR 310 | not applicable
Debit | Tax clearing account (tax expensed at receipt) | INR 405 | not applicable
Credit | Tax clearing account (Actual claimable at invoice) | INR 300 | not applicable
Credit | Accounts Payable control account | INR 2070 | not applicable
Step 6. Invoice Approval At invoice approval:
invoice approval
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Invoice accrual | INR 1055 | invoice accrual 12
Credit | Registered purchase invoices | INR 1055 | not applicable
Step 7. Process inventory variance Price variance
IDT 10001065 Purchase order/ price variance
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Interim Variance | INR -5 | interim variance 1
Credit | Invoice Accrual -purchase order receipt | INR -5 | Invoice accrual 3
Inventory variance
IDT 100061038 Purchase order/ inventory variance
Debit / Credit | Ledger account | Amount | Reconciliation Group
--- | --- | --- | ---
Debit | Interim Variance | INR 5 | interim variance 1
Credit | Invoice Accrual -purchase order receipt | INR 5 | Invoice accrual 3