Understanding the Mapping of Interstate Stock Transfers

Use the Stock Transfer Entry program (P75I213A) to specify the quantity of stock to transfer and map the stock transfer order to the appropriate purchase order. The system retrieves the stock transfer order and purchase order of the item for transfer. The quantity of the item entered in purchase order receipt must be the same as the stock transfer order. The system compares the quantity of the item for transfer in the stock transfer order to the purchase order receipt. After matching the quantity, the system calculates the extended price and gross amount of the items transferred. The system does not retrieve the previously matched stock transfer orders.

The system calculates the VAT credit for the items transferred using this formula:

Credit available = VAT credit claimed during the purchase of the items – retention percentage on the VAT amount calculated on the value of the transferred items.

The State Government withholds a certain percentage of VAT amount during stock transfers between states as a retention percentage. The retention value is calculated on the VAT tax amount of the item transferred. Each state has a specific retention percentage. The system uses the retention percentage to calculate the VAT credit for interstate stock transfers.

Note: If the state does not have a retention percentage assigned to it, use the Retention Percentage program (P75I220) to assign a retention percentage to the state.

After calculating the value of the items transferred, the system updates the Stock Transfer Details table (F75I403).