FREIGHT DISCOUNT QUERY

Question

Dear All,
I am having Query regarding Freight:
Vendor is sending material (A) on which VAT is applicable
Let us say he sends Qty 1000 @ 10
So BAsic Price is 10000
Vat @ 4% 400
1) So Price inclusive VAT is 10400 Rs
The Freight is Applicable on the MAterial But the thing is that Vendor sends the Bill of 10400 less freight 500 Rs
i.e Net amount payable to Vendor is 9900 Rs
And when the MAterial Comes to Clients Premises then he pays the actual Freight Charges to Transporter Let us say Actual Freight is 550 Rs i.e my client is bearing 50 Rs Loss.
Awaiting for your rreplies
regards
shailesh

Answer 1

Hi
In ur case is ur price inclusive of freight in which case it will go the material vendor if is included in the basic price.
Also is VAT applicable on freight amount. If so then calculation will vary
Basic price 1000*9.5=9500 rs
Freight 500 Rs ( Maintain separately as a condition and enter the freight vendor in PO)
Total 10000 Rs
Tax 400 Rs
Total with tax 10400 Rs
Net payable to material vendor 9880 Rs
Net payable to freight vendor 520 Rs
Total with tax 10400 Rs
If VAT not applicable on freight amount
Basic price 1000*9.5=9500 rs
Freight 500 Rs ( Maintain separately as a condition and enter the freight vendor in PO)
Total 10000 Rs
Tax 380 Rs (For 9500 Rs)
Total with tax 10380 Rs
Net payable to material vendor 9880 Rs
Net payable to freight vendor 500 Rs
Now when u pay extra 50 Rs to the freight vendor enter the same in unplanned delivery cost while passing the freight vendor bill in MIRO and this will add to the inventory also.
Reg
Raja