Example of Accounting Calculations with Special Inclusive Tax
These examples illustrate how accounting calculations happen for standard and complimentary fiscal documents.
Scenario
Standard Fiscal Document
For Standard Fiscal documents, on validation the inclusive tax value is automatically calculated. During receipt accounting, the tax recovery rate is determined based on the fiscal document tax determinants from fiscal document. For example, if BRL 100 is the fiscal document price, say Tax A is the special inclusive tax of 7 percent with tax recovery rate as zero (100 percent nonrecoverable tax) , and Tax B is the special inclusive tax of 3 percent with tax recovery rate as 100 percent (100 percent recoverable tax) then the special inclusive tax will be:
-
Nonrecoverable tax (Tax A): BRL 7 (7 percent of BRL 100 fiscal document price)
-
Recoverable tax (Tax B): BRL 3 (3 percent of BRL 100 fiscal document price)
The following table explains how the accounting calculations happen in this scenario:
|
Event |
Accounting Line Type |
Cost Reference |
Debit or Credit |
Amount |
Subledger |
|---|---|---|---|---|---|
|
Receipt |
Receiving Inspection |
Tax-exclusive fiscal document price |
Debit |
90 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Tax-exclusive fiscal document price |
Credit |
90 |
Receipt Accounting |
|
Receipt |
Receiving Inspection |
Nonrecoverable tax (Tax A) |
Debit |
7 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Nonrecoverable tax (Tax A) |
Credit |
7 |
Receipt Accounting |
|
Receipt |
Tax Recoverable |
Recoverable tax (Tax B) |
Debit |
3 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Recoverable tax (Tax B) |
Credit |
3 |
Receipt Accounting |
|
Invoice |
Supplier Accrual |
Tax-exclusive fiscal document price |
Debit |
90 |
Payables |
|
Invoice |
Supplier Liability |
Tax-exclusive fiscal document price |
Credit |
90 |
Payables |
|
Invoice |
Supplier Accrual |
Nonrecoverable tax (Tax A) |
Debit |
7 |
Payables |
|
Invoice |
Supplier Liability |
Nonrecoverable tax (Tax A) |
Credit |
7 |
Payables |
|
Invoice |
Supplier Accrual |
Recoverable tax (Tax B) |
Debit |
3 |
Payables |
|
Invoice |
Supplier Liability |
Recoverable tax (Tax B) |
Credit |
3 |
Payables |
|
Receipt Delivery |
Inventory |
Tax-exclusive fiscal document price |
Debit |
90 |
Cost Accounting |
|
Receipt Delivery |
Receiving Inspection |
Tax-exclusive fiscal document price |
Credit |
90 |
Cost Accounting |
|
Receipt Delivery |
Inventory |
Nonrecoverable tax (Tax A) |
Debit |
7 |
Cost Accounting |
|
Receipt Delivery |
Receiving Inspection |
Nonrecoverable tax (Tax A) |
Credit |
7 |
Cost Accounting |
Price Complimentary Fiscal Document
Consider a scenario where the PO price is BRL 100 and fiscal document Price is BRL 70. Say, Tax A is the special inclusive tax of 7 percent with tax recovery rate as zero (100 percent nonrecoverable tax), and Tax B is the special inclusive tax of 3 percent with tax recovery rate as 100 percent (100 percent recoverable tax). Subsequently, if a complimentary fiscal document comes in for BRL 30, which is the price difference between the PO price and Standard fiscal document price, it's considered as price correction.
The following table illustrates the accounting entries when a standard fiscal document comes in:
|
Event |
Accounting Line Type |
Cost Reference |
Debit or Credit |
Amount |
Subledger |
|---|---|---|---|---|---|
|
Receipt |
Receiving Inspection |
Tax-exclusive fiscal document price |
Debit |
63 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Tax-exclusive fiscal document price |
Credit |
63 |
Receipt Accounting |
|
Receipt |
Receiving Inspection |
Nonrecoverable tax (Tax A) |
Debit |
4.9 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Nonrecoverable tax (Tax A) |
Credit |
4.9 |
Receipt Accounting |
|
Receipt |
Tax Recoverable |
Recoverable tax (Tax B) |
Debit |
2.1 |
Receipt Accounting |
|
Receipt |
Supplier Accrual |
Recoverable tax (Tax B) |
Credit |
2.1 |
Receipt Accounting |
|
Invoice |
Supplier Accrual |
Tax-exclusive fiscal document price |
Debit |
63 |
Payables |
|
Invoice |
Supplier Liability |
Tax-exclusive fiscal document price |
Credit |
63 |
Payables |
|
Invoice |
Supplier Accrual |
Nonrecoverable tax (Tax A) |
Debit |
4.9 |
Payables |
|
Invoice |
Supplier Liability |
Nonrecoverable tax (Tax A) |
Credit |
4.9 |
Payables |
|
Invoice |
Supplier Accrual |
Recoverable tax (Tax B) |
Debit |
2.1 |
Payables |
|
Invoice |
Supplier Liability |
Recoverable tax (Tax B) |
Credit |
2.1 |
Payables |
|
Receipt Delivery |
Inventory |
Tax-exclusive fiscal document price |
Debit |
63 |
Cost Accounting |
|
Receipt Delivery |
Receiving Inspection |
Tax-exclusive fiscal document price |
Credit |
63 |
Cost Accounting |
|
Receipt Delivery |
Inventory |
Nonrecoverable tax (Tax A) |
Debit |
4.9 |
Cost Accounting |
|
Receipt Delivery |
Receiving Inspection |
Nonrecoverable tax (Tax A) |
Credit |
4.9 |
Cost Accounting |
The following table illustrates how the accounting entries look after the Price Complementary processing:
|
Event |
Accounting Line Type |
Cost Reference |
Debit or Credit |
Amount |
Subledger |
|---|---|---|---|---|---|
|
Invoice |
Invoice Price Variance |
Tax-exclusive complimentary fiscal document Price |
Debit |
27 |
Payables |
|
Invoice |
Supplier Liability |
Tax-exclusive complimentary fiscal document Price |
Credit |
27 |
Payables |
|
Invoice |
Invoice Price Variance |
Nonrecoverable tax (Tax A) |
Debit |
2.1 |
Payables |
|
Invoice |
Supplier Liability |
Nonrecoverable tax (Tax A) |
Credit |
2.1 |
Payables |
|
Invoice |
Tax Recoverable |
Recoverable tax (Tax B) |
Debit |
0.9 |
Payables |
|
Invoice |
Supplier Liability |
Recoverable tax (Tax B) |
Credit |
0.9 |
Payables |
|
Invoice Price Variance Adjustment |
Receiving Inspection |
Invoice Price Variance |
Debit |
27 |
Receipt Accounting |
|
Invoice Price Variance Adjustment |
Invoice Price Variance |
Invoice Price Variance |
Credit |
27 |
Receipt Accounting |
|
Invoice Price Variance Adjustment |
Receiving Inspection |
Nonrecoverable Tax Invoice Price Variance |
Debit |
2.1 |
Receipt Accounting |
|
Invoice Price Variance Adjustment |
Invoice Price Variance |
Nonrecoverable Tax Invoice Price Variance Note: Only nonrecoverable portion of tax is accounted in Receipt Accounting. The recoverable portion of tax is ignored in Receipt Accounting as no receipt is created against a price complementary fiscal document. |
Credit |
2.1 |
Receipt Accounting |
|
Acquisition Cost Adjustment |
Inventory |
Invoice Price Variance |
Debit |
27 |
Cost Accounting |
|
Acquisition Cost Adjustment |
Receiving Inspection |
Invoice Price Variance |
Credit |
27 |
Cost Accounting |
|
Acquisition Cost Adjustment |
Inventory |
Nonrecoverable tax (Tax A) |
Debit |
2.1 |
Cost Accounting |
|
Acquisition Cost Adjustment |
Receiving Inspection |
Nonrecoverable tax (Tax A) |
Credit |
2.1 |
Cost Accounting |