Hi Everyone,
There is a scenario where our client wants to calculate the GST on the MRP.
For illustration, refer below: -
1. Item A : Qty - 1, Direct Unit Cost - 90, Line Amount = 90. System is calculating GST on 90 by default.
Item B : Qty - 1, Direct Unit Cost - 70, Line Amount = 70. System is calculating GST on 70 by default.
2. Our client wants to calculate GST on MRP. Item A. MRP - 100, Item B MRP - 80. So GST should calculate on 100 and 80 for respective items.
3. But MRP should not be considered to arrive at the Net Amount, only Line Amount to be considered. In this case Net Amount is 90 + 70 = 160.
4. Inventory should also capture Line Amount of the respective item and not the MRP amount.
So MRP is used to calculate only the GST for each item in the purchase invoice. Rest it should not impact anywhere in the Purchase Order/ Purchase Invoice. How to handle this kind of scenario.
Note: - We are using Indian Taxation.
