Combined Transaction of Sales & Purchase with Net Receipt. How to manage GST in the reports?


We sold our Teas via Auction centers, They send us an Tax Invoice copy say the amount is 80,000 including GST. Also they send us an expense sheet for brokerage charges and other expenses say 7,000 including GST. and they finally pay 73,000 to us after deducting all the expenses.
some time auction house send their expense sheet 1 week later.

We have two options to solve the above scenario.

  1. Create the sales invoice for 80,000 and keep it in draft mode until the expense is registered in the system by deducting brokerage & other charges and GST applied for the expenses (In Negative amount).

  2. Create and submit the sales invoice for 80,000 and create another purchase invoice for the expense sheet. But the problem with is method is sales invoice always remain in overdue mode and whenever make payment via direct payment entry mode its showed in reference child table. Also I have to check separate ledger for customer and supplier.

As per the above scenario what is the best way to record the sales invoice along with the payment or if there is any other solutions for this type of scenario .

Kindly help.

Make payment entry against sales invoice, change paid/recd amount to amount you received. ie 73000.

Allocate 8000 against the sales invoice
Once you do this there will be one button visible, saying write off difference amount. Click on that.

By default it will allocate 7000 against write-off account. Change the write-off account to brokerage expense account.

Thank you @Mukesh_Variyani,

As per my understanding brokerage & other charges will be applicable during payment entry, But if GST is charged on the brokerage then how should I considered that in to the accounts.

One way, you can select more than one account in the difference table. Part difference going as GST and other part as brokerage expense.

Other way, you may pass JV and allocate that against invoice. For remaining amount only pass as payment entry.

I have tried both both of suggestions(Payment Entry & JV). But the problem is the GSt effect not showing in my GST Purchase register report. How should I match the Inward & Outward GST.

Unfortunately, the GST Purchase register doesn’t support expenses booked through journal entry. However, you can check these entry from General Ledger (Filtered on GST Account) and add them to return manually.


I replicated this transaction and tried both approached, but it’s not showing up in GST reports.

I could think of two approaches by which this could be solved: (not existing solution, but to be worked on :slight_smile: )

(i) Allow selection of PI into the Payment Entry with type as “Receive” - I know this sound illogical, but to handle this kind of combined transaction of SI & PI with the money flow is clubbed amount.

(ii) Pull JV into the GST reports. Since posting Service expense via only PI is not mandatory. I mean instead of creating service item, then tag it to expense ledger and then use that in the PI to pass entry. An accountant with Dr. Cr. knowledge, would prefer passing via JE which is much quicker.

So, since we have given two options to book expenses–which is great–trying to pull JE for GST reports would be a better approach.