Chart of Account setup

Hi all,


Getting close to using ERPNext, just a few finally tweaks. I need to setup 2 entries for GST (Goods and Service tax). One would be GST paid on purchases and other GST collected from customer. For the GST paid I’ll get credit from government and for GST collected I’ll pay to the government. I somehow need to link these 2 accounts and want to know the difference between the 2.

How can I achieve this wiht ERPNext?


Hello,

You
can create a single accounting ledger for GST and use it in sales and purchase transactions.

In Sales Invoice:
Select GST as a tax in Sales Invoice, it will be credited.

In Purchase Invoice:
Submit Purchase Invoice, GST will be debited.


When
you see General Ledger report of GST, all debits will indicate GST paid
to supplier (tax asset) and all credits will indicate GST received from
customer. The account balance of GST will be amount payable to the
government.

If you create separate accounting ledger of GST in
Asset and Liability, you will need to manually calculate set-off to know
amount payable to government. There is no handy report available to
calculate that.

Finally, I will recommend using one single ledger of GST created under Current Liability >> Duties and Taxes.


Thanks and Regards,
Umair Sayyed
um…@erpnext.com

www.erpnext.com


On Mon, Nov 5, 2012 at 5:54 AM, electromania <ia…@gmail.com> wrote:
Hi all,

Getting close to using ERPNext, just a few finally tweaks. I need to setup 2 entries for GST (Goods and Service tax). One would be GST paid on purchases and other GST collected from customer. For the GST paid I'll get credit from government and for GST collected I'll pay to the government. I somehow need to link these 2 accounts and want to know the difference between the 2.

How can I achieve this wiht ERPNext?





--
Thanks and Regards,
Umair Sayyed
um...@erpnext.com
www.erpnext.com