How to setup and account for GST-TCS and TDS by Ecommerce Operators in Sales Invoices?

ERPNext Accounting
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1

Hello-

Can anyone recommend the best workflow to record Sales Invoices issued by e-commerce operators such as Amazon, Flipkart etc? And consequently accounting for the GST-TCS and TDS deducted by them before transferring payments to our bank account.

Please consider the following example:
image

Currently, I’m recording a Sales Invoice with a total of ₹336.00 (Row 1-4)
A Purchase Invoice is recorded for ₹106.58 (Row 8-11)
The payment receipt is recorded for ₹223.73 (Row 12)

How do I account for the TCS and TDS (Row 5-7)?
Is a Journal entry the best way to do it?

Or is there a better way? A journal entry for each transaction will be too slow and painful.

Any help is appreciated.

2

You can use Taxes and Charges section in Sales Invoice to record these. You may have to create separate Account for TCS etc.

3

If I add the amounts in Taxes & Charges, the invoice total will exceed the Order value.
I cannot even reduce the Taxable Amount, otherwise GST calculations will be impacted.

4

Also, TCS is not an additional tax item. Only a portion of GST already deducted before payment. Ideally, it should be added as credits to the current GST accounts.

5

You can create tax templates as per your accounting structure and achieve the below

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