Earlier this year I made an enhancement via the following PR https://github.com/frappe/erpnext/pull/20083 which allowed users to make internal customers and suppliers within the same company and issue GST compliant invoices for stock transfer within the same company.
I are making some further enhancement in this scenario via this PR which has some accounting implications and would like the community’s feedback on this. The changes that this PR intends to make are as follows.
1. User can define internal-transfer account which can be used for internal stock transfers user has not defined any account in the transaction
1. Default Internal transfer account in company master
Stock is transferred from warehouse Test Warehouse P (Account: Central Warehouse-GTPL) to In Transit Warehouse - GTPL (Account: Stores-GTPL)
Item rate - Rs 500
CGST - Rs 45
SGST - Rs 45
No Income will be booked or party account (Debtors Account) will be debited on posting such an invoice. Only tax and accounting entry for stock will be posted.
This is for internal transfer (1 company). In India you are liable to issue a Tax Invoice and generate E-way bill even if you are transferring stock for one warehouse to other within the same company.
Maybe you can change these word as not to confuse other readers?
Perhaps to inter-warehouse?
Because I think the term inter-companies is used for between companies registered in company doctype in ERPNext.
Thank you.
In India you have to issue GST Tax Invoice even for stock transfer between warehouses of the same company. This enhancement doesn’t interfere with any of the existing flows and inter-company (between 2 companies) invoices can still be created as they can be done now. This just provides user one more functionality where taxes has to be applied on stock transfers. All these functionalities already exists. The only change my PR makes is not booking income and expenses on posting of such transactions
Warehouses can be assigned Chart of Accounts account codes. (Stock Items do not have account codes.) In internal transfers if warehouses have different account codes, general ledger entries is generated even for stocks with the same item code. Does your proposal consider this?
Yes, it is considered. If you refer the GL entries I have posted above my warehouses have different accounts linked to them. So on submitting the transaction balance is transferred from source to target warehouse’s account.
For Internal Transfer (Sales Invoice) , the GST (IGST) reflects in the GSTR3-B report & GST Sales Register, but NOT in GSTR-1 .
is that a bug or some configuration issue ?