8/6/2019 Vendor Discounting
1/16
VENDOR DISCOUNTING CHANGE IN ACCOUNTING PROCESS - PROPOSED
Purchase Order Current Purchase Order
Excise Status VAT CST Cenvatable Cenvatable
Sales Tax Status
Basic Price before Discount 100.00 100.00 100Discount in %
expressed in % terms 0% -2% 0.00 0.00 0
Basic Price after Discount 100.00 100.00 100
Excise Duty 10.30% 10.30 10.30 10
Sub-total 110.30 110.30 110
Sales Tax 5% 2% 2.21 5.52 2
Gross Invoice Value 112.51 115.82 112
Cenvat / Set off
- Excise (10.30) (10.30) 0
- Sales Tax 0.00 (5.52) 0
Cost to M&M 102.21 100.00 112
Accounting Entries
Goods Receipt
Purchase a/c Based on Valuation Class attached to material
102.21 100.00 112
Purchase - Discount a/c 0.00 0.00 0
Purchase - Discount Contra a/c 0.00 0.00 0
Inventory 102.21 100.00 112
Purchase Offset (102.21) (100.00) (112
GRIR (102.21) (100.00) (112
Cenvat Credit
RG23 A 10.30 10.30 0
Excise Set off a/c (10.30) (10.30) 0
Bill Passing
GRIR 102.21 100.00 112
Excise Set off a/c 10.30 10.30 0
VAT set off a/c 0.00 5.52 0
Vendor a/c (112.51) (115.82) (112
Please note that new condition type (in %) is also subject to
amendment.
1 In addition to above entries under various scenarios, further
process changes with respect to ,
1. retrospective amendments in PO basic rate
2. corresponding change in discount in value terms
3. accrual of retrospective amendments Dr/ Cr note value
4.bill passing against retrospective amendments
5. Validation of rejection cycle & Dr / Cr note against the
same
6. Any other process change
also needs to be tested.
2 Further, bank upload file formats need to be developed for
each of the concened banks.
3 Interest debited by Bank will be available at payment line
item / Sector + Vendor level.The same needs to be uploaded in SAP.
We feel it can be done in ZFI015 menu.
4 Any other related development to be done.
Non-Cenvatab
CST-NonCenvatable
VAT-Cenvatable
CST-NonCenvatab
