Invoice Verification for Foreign VendorOn receipt of vendor bill
the following entry will be passed:GR/I R Account DRVendor Account CR
Invoice Verification for Custom vendorOn receipt of Vendor bill
the follo wing entry will be passed:1) R G 23A/RG 23C Part
2 A/c (CVD) A/c D RCenvat Cl earing A/c C R2) G/R I/R A/c DRCenv
at Clearing A/c DRVend or A/c CR3) Cost of Mat erial A/c DR Vendor A/c (
Customs) C RInvoice Verification for Freight / Clearing AgentCost o
f Material A/ c DRVendor A/c (Clearing Agent) CRIn voice
Verification for Octroi ExpensesC ost of Materi al DRVendo r A/c (Octroi
) CRTDS (Work Contract Tax) for Service Orders shall
be calculated and deductedac cordingly.Th e following
entry will be passed on bill passing:Exp enses Acco unt DRVend
or Account CRTDS Acc ount CRThe material shall be returned to
the vendor using theReturn to vendor movement type in
SAPCreatin g a Return POThese transactions will be processed
in the MM module.The accounting entries will be :Returns after
GRNGR/IR A/c DrStock A/c CrThe accounting in respect of debit / credit
memos for FI vendors, the process willbe similar to that of
invoice processing. The accounting entries will be:On
issue of debit note Vendor Acc ount DRExp enses Acco unt CRIn
respect of import vendor capital goods exchange
differences are to beaccounte d manually through a Journal
Voucher for capitalizatio n.Exchange rate differences will be
accounted at HO. An example of theaccounti ng entry in this case
shall be:Invoice entry @ 40 INR: 1 USDAsset / Expense A/
c DR 100Ve ndor A/c CR 100Payme nt Entry @ 41 INR: 1 USDVendor
A/c DR 100 Bank A/c C R 110Excha nge rate los s Capital A/ c DR 10Ass
et A/c DR 1 0Exchange rate loss Ca pital A/c CR 10A new G/L account
shall be created for the special G/L transactions .The
accounting entry for making the down payment shall
be:Advance to supplier account De bitBank A/c CreditWhen the invoice
is booked the following entry is passedGR/I R account D ebitVendor
account Cre ditClearing of Invoice against Down PaymentVe
ndor A/c De bitVendor d own payme nt account CreditWher ever, TDS is
applicable, the TDS will be deducted at the time of downpayment to
the vendor.Dow n Payment for Capital (tangible) AssetsDown
payment to vendors for capital acquisitions is to be reported
separately inthe Balance Sh eet under the head Capita
l Work in Progress. Hence downpayme nt for capital goods
would be tracked through a separate special generalledg
er indicator.Th e procedure to be followed is:Definition
of alternative reconciliatio n accounts for Accounts Payable for
postingdow n payments made for Capital assetsCleari ng the down
payment in Accounts Payable with the closing invoice.
A new G/L account shall be created for the special G/L
transactions .The accounting entry for making the down
payment shall be:Vendor Advance for Capital Goods
Account DebitBank A /c CreditWh en the invoice is booked the
following entry is passedAsse t A/c / Asset WIP DebitVendor
A/c CreditC learing of Invoice against Down PaymentVe
ndor A/c De bitVendor Advance for Capital Goods Account
CreditThe Following are the TDS Rates (to be confirmed with the
recent changes)Pa rticulars Tax Rate Surcharge Rate
TotalContra ctors 194 C 2% 5% 2.10%Adver tising 194 C 1% 5%
1.05%Prof. Fees 194 J 5% 5% 5.25%Rent Others 194 I 15%
5% 15.75%Rent Company 194 I 20% 5% 21%Commi
ssion 194H 5% 5% 5.25%Intere st - Others 194 A 10%
5% 10.50%Inter est Company 194 A 20% 5%
21%Special Concession al TaxWorks Contract TaxSECURI TY
DEPOSITS /EARNEST MONEY DEPOSIT RECEIVED FROMVEN
DORSBank A/c DRSecu rity Deposit Vendor CR EMD to give the age so
as to enable the same to be transferred to unclaimedE
MD account.PA YMENT OF TOUR ADVANCE DOMESTIC
TOURSEm ployee Advances will be paid by the Accounts
Department unit wise based onthe requisition or recommend
ation of the respective department al head.Emplo yee Travel
Advance A/ c DRCash / Bank Accou nt CR
