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Nondeducable tax

Former Member
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57

Hi,*

Please tell me what is importance of non deductible tax in purchase order conditions. What is effect on

effective value of purchase order? If effective value taking into account non deductible tax then there is

difference between GR value and effective value of purchase order.

Regards

Anil

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi,

Non dedutable tax is like you can not take cerdit avail for those tax (say Ex: CST). in those tax we mention as non dedutable in Purchase order condition.

since this will effect the purchase price calculation. but it will not post in GR level. because that condition mention as a statical in pricing schema. so, the GR value & effetive PO value will not be same.

SAM\

Former Member
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lpijkl;

Former Member
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Hi,

Non deductibles tax means that the value of NAVS(usually Non deductible taxes are populted in this condition types) will be debited to the stock account including the net price and will credited to GR/IR clearing account. Non deducitble taxes are inventorised but deductible taxes are not inventorised which are posted to seperate account this is handled through Account key defined in Financial Accounting in SPRO.

Thanks

Shashi