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Variance Accounts are coming into Invoice.

Posted: Mon Apr 25, 2011 12:25 pm
by Anjireddy.r12
Hi,

We are matching invoice with Receipt and applying the tax at the time of Invoice creation.

The Accounting entries are,

Ex: Receipt amount 1000

Inventory Receiving a/c Dr 1000
AP Accrual A/C Cr 1000

Invoice (we have 2 type of Taxes 1% and 3% and separate tax accounts): 1040

Ap accrual A/c Dr 1000
<b>Tax variance A/c Dr 10 (we need tax Account here)
Tax variance A/c Dr 30 (we need tax Account here)</b>
Liabilty A/c Cr 1040

The variance account is coming from Receiving Options.

Please share your valuable suggestions on this issue.