Hi Team,
Am I missing something.
Just started testing with transaction now and my first stock transaction to me does not look correct, but maybe someone can clearify.
I created a tax rule under “Purchase Taxes and Charges Template List” named VAT and on this form there is a tick box “Is this Tax included in Basic Rate?” which is how we do our buying and selling. I understand that the price I put in rate on the purchase order is “excl vat price + vat amount”. So in my case the product cost is R4.65 which means “R4.08+R0.57”.
With this im expecting the see a stock journal where the stock value it R4.08 not R4.65 when I do the receipt.
Im getting R4.65, is there a setting missing or am I doing something wrong. I think erpnext should not add the vat to the stock value.
The purchase receipt has the correct “Net Value of R4.08”
But its posts R4.65 into the store and an additional “0.57” Expenses Included In Valuation line. Not sure what this is about?
If this is removed and the excl price is posted into the store then the final journal on the invoice will be correct?
Am I correct in saying that the stock value in the wharehouse should not include the vat portion?
I would like to enter item lines that include the tax cause that is how we are quoted by the supplier, but not sure if the “Is this Tax included in Basic Rate?” setup means this.
awaiting your feedback.
regards
Hemant