I have a supplier who charges a commission and some other small fees in addition to the shipping charges. I need to include the extra charges in the valuation of the product I receive from the supplier so I add the extra amount to the Taxes and Charges table in the Purchase Invoice. In this scenario I am receiving the product with suppliers invoice and paying at the same time so I choose to select “update stock” and “Is paid” in the purchase invoice. When I submit the purchase invoice The value of the stock is the value I would expect in the stock ledger. However in the general ledger there is a credit to the expenses included in valuation account that I’m not expecting. It seems that the additional fees that I added to the “Taxes and Charges” table always go into “expenses included in valuation” even if I select to have them put into my parts and materials asset account.
Am I missing something as to how this is supposed to work? Do I have to make a manual journal entry to move the amount from “expenses included in valuation” to my parts and materials inventory account? also shouldn’t “expenses included in valuation” be an asset account rather than the default of an expense account?
Looks like Landed Cost Voucher should help you, here’s the documentation -
Is there anything the Landed Cost Voucher will do differently than using the taxes and charges table?
Also I have already been billed for the shipping and other charges and the bill is paid so why wouldn’t I want to put that in the purchase invoice as well?
I confused as to why when I submit the purchase invoice my stock valuation is what I would expect but the journal entry has the taxes and fees amount doubled into the inventory account and then credits the "Expenses included in valuation account. I understand that this still balances but won’t the journal be confusing because it looks like the stock was overvalued? also how would it be tracked as the materials move from Parts and Materials to WIP and finally Finished goods?
I have included a sample of the ledger and Purchase invoice for reference.
I had your original question. I’m still at learning about ERPNext.
I think the answer is described in the article: https://docs.erpnext.com/docs/user/manual/en/accounts/articles/what-is-the-differences-of-total-and-valuation-in-tax-and-charges
Could you please confirm if using the total and valuation for those “Taxes and Charges” you mentioned was the solution to your answer?
I think the Landed Cost Voucher is not the solution in this case as the correct valuation can be managed from the original invoice. That was very confusing to me wondering why the extra procedures on every purchase like this.
@MrMauro I used both ways.
Landed cost Voucher is very useful when the invoice is confirmed earlier than the time the other costs are consummated.
So, you can have a submitted invoice with the actual goods value. And once you are done with all the other costs, you can attach them to the value of the goods in the Landed cost voucher.
But if you have an open invoice that has all its extra costs known and finished by the time of “submit” then it will be perfect to add the costs in the “Taxes and charges” table inside the invoice. Provided that you pick the “Valuation” choice in each line.