GST: Non Recoverable Tax On Purchase Receipt Not Updated To The Item Cost On Receiving Date (Doc ID 2946360.1)

Last updated on JUNE 29, 2023

Applies to:

Symptoms

Non-recoverable tax on Purchase Order Receipt is not updated to the Item cost on the Receiving Date.

Material received on say for e.g., 13-Sep-2022 with Non-Recoverable Taxes.
But after certain days on 01-Oct-2022, Non-Recoverable Taxes were updated and added with Item Cost.
For this reason, when the material is sold after receipt (13-Sep-2022), the COGS Amount is being considered without non-recoverable taxes and on 01-Oct-2022 item Cost is very high suddenly.

It was expected that the item cost should have updated with the non-recoverable tax on the same date it was delivered.

The issue can be reproduced at will with the following steps:
1. Navigate to India Local Purchasing > Receipts.
2. Perform receiving of goods.
3. Add non-recoverable taxes on it from Tools > India Tax Details.
4. Confirm taxes and save receipt.
5. Go to receiving transactions and deliver the receipt.
6. Find that the item cost is not updated with the non-recoverable tax amount.

Changes

Cause

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