I have create a Purchase Invoice and check the box of update stock.
Item Purchase 20 kg @ 150 = Total Amount 3000
Vat applier @5 % = 150
In Accounting ledger showing:
Creditors - 3150 (Cr)
Expenses Included In Valuation - 150 (Cr)
Expense head A/c - 3150 (Dr)
Vat - 150 (Dr)
Kindly help to rectify this.
Seems like you have enabled perpetual inventory system.
Is “Ghatia - RJT” account is linked to your warehouse? In that case, general ledger is showing correct entries. Though, “Ghatia - RJT” account should be an Asset account (Stock In Hand) instead of expense account.
My question are :
- My stock balance showing 3150 (Item price 3000+ Tax 150) but I think it should be 3000 only (excluding Tax).
Total of accounting ledger and my purchase Invoice is differ (showing
Accounting ledger total 3300 though my total is 3150 including tax).
Yes @komsel2228 based on your description, that is what we want.
But In my situation my Purchase Invoice total and ledger total is showing different.
My Purchase Invoice total is Rs.3150 including Vat 5% but my accounting ledger is showing 3300 (Image attached above).
I have updated stock on creation of the purchase Invoice.
The accounting entries are correct. Tax should be included in the valuation.
However, the documentation on Perpetual Inventory on ErpNext is very confusing as the same example has not been used throughout.
I perfectly understand what I need to know. Expenses included in valuation is actual tax amount which is included in the valuation.
Kindly close the issue.
Thank you every one.