Recording
Bank Charges in Payables
Issue: -
The
existing process for recording bank charges expenses, which involves journal
entries, does not allow for the claiming of GST input tax credit (ITC).
Resolution:
We
will now record bank charges through the Payables module by creating a
"Bank Charges" supplier. This will enable us to claim GST input tax
credit (ITC).
Supplier Setup:
Two
different suppliers will be created:
1. RMCL_BANK CHARGES
2. RPEL_BANK CHARGES.
This
separation allows for clear tracking of bank charges specific to each entity
(RMCL and RPEL).
Financial
Account Setup:
1. A new General Ledger (GL) account: -
Bank
Charges Payable," will be created to accurately track and report these
expenses. This ensures proper accounting
and reporting of bank charges.
2. Create Supplier Profile
We're
setting up separate suppliers for RML and RPEL bank charges to maintain clear
financial records for each entity. This separation is crucial for accurate
accounting, reporting, and analysis. By
having dedicated suppliers, we can easily track and manage the bank charges
incurred by each company.
3. Create Supplier Site Address
Because
we're using supplier sites to track bank charges by bank account and business
unit, we also need separate addresses for each. This way, when we look at a
bank charge, we can see exactly which account and which part of the company
it's associated with."
4. Create Supplier site name & Assign the Supplier Site with
respected Business unit.
We're
creating separate supplier sites. The site tells us which account and which
business unit and which bank the charges are for. They work together to give us
a complete picture."
