Archive for August 2016
SAP FICO Training
https://www.youtube.com/watch?v=qFkMLVrD2Hc&list=PL2u3Kc_iv32f0fwhwa1h1h-WoixQ2wxyh
How to create a new ledger account in SAP Financial Accounting
How to create a new ledger account in SAP Financial Accounting
Go to SAP Menu > Accounting > Financial Accounting > General Ledger > Master Records > G/L Accounts > Individual Processing > Centrally
Source guide: https://www.youtube.com/watch?v=nyILyO_Gif8
Inventory Count Technique
To get started, make lists from your inventory system before the physical count and use these to make your count. These lists should include the item code, cost per item, and inventory quantity shown on the records, along with a space for the actual count and a space for the total value of that item in stock. After the count, calculate the value by multiplying the cost times the actual count. Then total this column for all items to get the total inventory value. With a manual system, you do this by hand, but a computerized inventory system can calculate the values, along with differences between actual and recorded inventories. By comparing these inventories, you'll have an idea of the loss of goods through theft or disappearance.
Partial stock take
Partial stock take is a method for physical inventory count. In this method, you do not disturb the operations. Instead you use techniques such as ABC to count inventories.
Take the top 20% of your items in terms of cost of goods sold and put them in Group A. Then, take the next 60% of products then put them in Group B. The remaining 20% will belong in Group C.
Here’s a quick table of what a retailer might come up with when grouping items using the ABC method:
Rate of sales tax on services in sindh
Rate of sales tax on services in Sindh has been reduced to 13% from 14% this year while for Telecommunication sector, the rate is 19.5%.
Extent of Adjustment of Input Tax
In relation to tax period, a registered person shall not be allowed to adjust input tax in excess of ninety percent of the output tax for that tax period. The adjustment or refund of remaining input tax shall be made on yearly basis in the second month following the end of the financial year of the registered person.
Claim Input Tax
In a particular tax period, a registered person can adjust input tax paid on goods and services purchased from local market, imported from abroad and goods purchased in auction during that tax period. He/she can also claim input tax paid in the immediate twelve preceding tax periods by mentioning the reasons for not claiming it earlier on the sales tax return.
Input tax and output tax example
An Example
For example if a registered person has bought goods that cost Rs 100 and he/she is charged Rs 15 as sales tax (input tax) at the rate of 15% his total purchase price becomes Rs 115. If he/she sells the goods for Rs 200 and charges Rs 30 @ 15%(as output tax) his total sale price becomes Rs 230. Output tax (15% of 200) = Rs. 30 Less: Input tax (15% of 100) = Rs. 15 Tax due (Rs. 30 minus Rs. 15) = Rs. 15
Sales Tax Rate 2016 in Imported Textile Finished Product in Pakistan
Sales Tax Rate 2016 in Pakistan for Textile imported finished goods for sale is 17 + 2 (value addition) is 19%.
Frequency of Sales Tax Returns
Monthly >>> a registered
person is required to file monthly return by the 15th day of the month following the period in which the supplies were made, in the designated branches of National Bank of Pakistan.
Quarterly >>> The taxpayers falling exclusively in the category of commercial importer, i.e the importer who imports taxable goods for business activity other than industrial use of such goods or manufacturing by himself, is required to file the return on quarterly basis.
Annual Return >>> A private or public, Ltd Company is to file annual Sales Tax return, for a financial year by the 30th September of the following financial year.
Who is required to be registered for sales tax?
1. all importers
2. all wholesalers (including dealers) and distributors
3. manufacturers not falling in cottage industry
4. Retailers (having value of supplies of over 5 million rupees, in any tax period during the last 12 months.
5. Persons making zero-rated supplies, including commercial exporter who intends to obtain sales tax refund against his zero rated supplies.
What is tax period in Sales tax?
It is a period of 01 month or such other period as the Federal Govt may specify.
FBR Sales Tax Annexure Details
FBR Sales Tax Annexure Details are as follows:
Annexure A: Domestic Purcahse Invoice
Annexure B: Imports
Annexure C: Domestic Sales
Annexure D: Exports
Annexure E: Federal Excises FED
Annexure F: arry forward (if any)
Annexure G: Arears (if any)
Annexure H: Stock statement
Annexure I: Debit & credit notes
Annexure P: Province wise break up automatically filled on the basis of annexure C. Only for service providers.
Advance tax on rent 2017
Advance tax on rent 2017 is 15% in case of a company.
For individual, rate card is as follows:
Withholding tax rates in Pakistan 2017
Withholding tax rates in Pakistan 2017 is as follows:
Payments of goods purchased
In case of a company >>> 4% (Filler) & 6% (Non-Filler)
In case of Individual & AOP >>> 4.5% (Filler) & 6.5% (Non Filler).
Payments of services
In case of a company >>> 8% (Filler) & 12% (Non-Filler)
In case of Individual & AOP >>> 10% (Filler) & 15% (Non Filler).
Methods of Inventory Valuation
1. FIFO (First in First Out)
2. Weighted Average
3. LIFO (Abandoned method, not supported by IAS).
What is net realisable value (NRV)?
NRV is the estimated selling price minus any cost incurred on the asset/ inventory to complete and sell the good or product.
How inventories are measured
Inventories are measured at lower of cost and NRV (Net Realisable Value).
