N1:- IT-WCT-4% - Invent; ST 3.

4% - Invent & Cess 1%

For example :
The base amount is Rs. 1,00,000/WCT 4% of Rs. 1,00,000/- = Rs. 4,000/Service Tax 3.4% of Rs. 1,00,000/- = Rs. 3,400/Cess 1% of Rs. 1,00,000/- = Rs. 1,000/Note:As the Requirement of the Finance Team we had create on Additional Condition type for Cess 1% on the
Base value It will by default Effect to the GRN Account Credit but whereas per Tax code concerned we
had not change anything in the tax code
At the time of PO user have the take the same Tax code i.e. N1 & in Condition tab procurement team
should take Condition type as ZLS2 as 1% Cess.
Purpose for creating Condition Type- ZLS2
Whenever change in the Percentage of the Cess it is an input field which can be easy changeable In the
Condition tab because Percentage is an input filed user must put the percentage in the Condition Field
and get the proper Tax code Calculation.
At the Time of MIGO following accounting Entry Will generate i.e.
Inventory Ac Dr.
To GRN Account
To GRN Account i.e. 1% Cess

100000
99000
1000

At the time of Miro following Accounting Entry will generate

GRN Account (include 3.4% Service Tax & 4% WCT)
GRN Account i.e. 1% cess
To Vendor Account

107399
1000

108399

Following are the process through the Procurement

Created By : - FICO TEAM

13th Sept.2011

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Step 1 :

Purchase order creation. Through

Click on Invoice Tab

T Code : -ME21n

Click on

Click on Condition Tab

Created By : - FICO TEAM

13th Sept.2011

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Condition type :- ZLS2 as 1% La

bour Cess @ of condition type PBXX Rs.1000

Note : As per the Requirement we had created on Additional Condition Type for Labor Cess @ 1%

Step II :TCODE MIGO

Accounting Entries

Step III : -

Created By : - FICO TEAM

13th Sept.2011

TCODE :- MIRO

Page 3

Click on

Click on

Created By : - FICO TEAM

13th Sept.2011

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Note : :If any Query or rectification the Please Revert it back for the same

Created By : - FICO TEAM

13th Sept.2011

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