Purchase Tax not split into differrent ledger account but on all total on stock asset account

ERPNext Accounting
1

Hi,

How to make and ensure the purchase amount and purchase tax are entering different asset account rather than total amount being entered into stock asset?

I try to do purchase cycle to check account entry (standard ErpNext fresh install), when purchase receive is made, the entry into account are as bellow:
asset:
of total purchase + tax account into stock asset (finish good account)
liability side:
into stock received but not billed account (this is for purchase amount before tax)
into expenses account (expenses included in valuation account)

This is may not correct or suitable (in my case or i believe many other user too), how to change or to directing taxes into desired account both in asset side and in liability side. For example:

In Asset side the entry should into 2 accounts eg:

  1. Finish good asset (for purchase amount without tax)
  2. Unpaid Tax Advances account

In Liability side the entry should be made into 2 accounts:

  1. Stock received but not billed yet (for purchase amount without tax)
  2. VAT Tax liability account (for the tax amount) and not into expenses account

(the entry for taxes actually should be made when invoice is made rather than when good is received, in case there is good received via delivery not only and invoice is not received yet), so how to change this?

I am seeing this scenario:

Stage one, Good received
entry purchase amount without tax into :

  1. stock asset - debit (finish good)
  2. stock liability (stock received but not billed yet) - credit

Stage two, Invoice from supplier received (made):
entry the followings:
Asset side:

  1. debit unpaid tax advances account

Liability side:

  1. debit - stock received but not billed account
  2. credit - creditor account
  3. credit tax liability account

Stage Three, payment to supplier being made:
Entry the followings:

Asset Side:

  1. Credit Bank (or Cash Account)
  2. Credit unpaid tax advances account
  3. Debit Paid Tax advances account

Liability side:

  1. Debit creditor account
  2. Debit tax liability account

This scenario will suit the situation where invoice not come together with goods and delivery document or when stock input role is different with invoice input role due to company policy, so there will be time delay in between while we want real time valuation report.

Please share info how to set-up and where and what files to be changed?

Thanks and regards,
Bun Hin

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