Input / Output

[snl.sonawane87]

Hello ,
What is the purpose of selecting Input , output tax GL account. the transaction considered for same are related to purchase or sales or something else..

Regards,
Sunil

[snl.sonawane87]

Hi Sunil,

Input tax is tax paid on goods coming into a company (purchases or inputs), whilst output tax is tax on goods leaving the company (sales or outputs). It is a distinction normally applied in countries that use a value added tax system.

Thanks
Tim

Thanks Tim,
Jst want to confirm it. Hope you ll help me for further quiries.

[snl.sonawane87]

Hi Sunil,

Input tax is tax paid on goods coming into a company (purchases or inputs), whilst output tax is tax on goods leaving the company (sales or outputs). It is a distinction normally applied in countries that use a value added tax system.

Thanks
Tim

Hey Tim,
It means that after defining particular Input/Output Tax GL Account amount of Taxes retrieved after each transaction with customer or supplier has been added to that defined GL Account.
and is it exactly similar for Sales GL Interface posting and COGS GL Interface posting. Only difference is that in above case tax is considered and here the total amount.
Am i right ?

Regards
- Sunil