Purchase Taxes Affects Moving Average Cost

Hello experts,
is it possible to have the sales tax paid on purchases affect the moving average cost of the item, in a simple manner?
Thanks,
Aaron

Hi,
From your explanation i came to understand that the tax amount has to be added to the inventory value.
You need to use the landed cost document.
For example,
incase if you are using EDCessHcess+Vat tax,choose only vat tax in purchase document.
and the EDCessHcess has to be added to inventory value.
Use ED,Cess,Hcess in the landed cost.
This would pass  EDCessHcess amount to the inventory.
After booking the Goods Receipt PO,you need to immediately book the landed cost,Which will affect the moving average value.
Else the tax value will be added to price difference account-mapped in the warehouse and there would be much deviation in the moving average.
Hope this would help in solving the issue.
Edited by: M. Sundararaja Perumal on Dec 6, 2008 1:54 PM

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