We are trying to calculate cost of goods sold. We referred to general ledger entries and filtered on the ‘accont = cost of goods sold’.
However we noticed that the amount is inclusive of the taxes applied at the time of the purchase.
Also, it looks like the valuation rate used is moving average despite the stock setting is set to use FIFO.
Any inputs on how to get Cost of Goods Sold would really help. We need COGs based on the purchase rate excluding the tax amount.
Hi could you pls include a screen shot of what you are looking at? Maybe i can compare to ours.
Hi @Not_a_countant please find below screenshots. I have just taken relevant sections of the screen
e.g. I purchase one item for 1000 Rs with 50 Rs as tax (CGST and SGST) and create a purchase receipt as follows - Total purchase amount = 1050/-
Then we sale the same item at 2000 Rs. Following is the delivery note -
Now when i look at my Cost Of Goods Sold Account through “General Ledger Report” I see amount as 1050/- against this delivery note.
the amount is inclusive of the taxes. I was hoping for COGS amount to be without taxes -
Hi Sachin, I don’t understand your example. How can 9% of 2000 be 50? Can you check your item master? There is nothing wrong with the ERP, you have master data that is mid configured. Also check what GL account tax is mapped to.
@Not_a_countant the item i used in the example has 5% tax rate. Sorry the screen shot confused. My point however is how do i get cost of goods sold without tax amount included in it.
PFB screenshot of item tax configuration -
@Pawan Thank you. This helped. At the time of receiving goods we have an option to consider tax as part of the valuation or not.
Okay. Now we just have to forcefully set this option everytime purchase receipt is created.
Thank you once again.
