Material Cost (including Land transportation)
Posted: Wed Jan 26, 2011 7:12 am
Hello All
Please help me undermentioned problem. thanks in advance.
Scenario
(i) The company planned to buy Solid Combustible Material (SCM) from Fauji Cement Co. Ltd. (FCCL);
(ii) For such purpose, as per agreement, has to arrange its own loading and transportation (LnT) from the supplier?s site;
(iii) Accordingly, the supplier providing LnT services would be different from the supplier of SCM; and
(iv) The purchase department would be issuing PO for SCM to FCCL and a separate PO for LnT to 3rd party.
Requirement
(i) The costs of LnT has to be part of the cost of SCM;
(ii) The total cost of SCM (including material cost and LnT cost) would be charged to single account code in the series of 52 (manufacturing expenses); and
(iii) The tax deduction rates for material cost, loading cost and transportation cost are all different and should be applied accordingly.
Please help me undermentioned problem. thanks in advance.
Scenario
(i) The company planned to buy Solid Combustible Material (SCM) from Fauji Cement Co. Ltd. (FCCL);
(ii) For such purpose, as per agreement, has to arrange its own loading and transportation (LnT) from the supplier?s site;
(iii) Accordingly, the supplier providing LnT services would be different from the supplier of SCM; and
(iv) The purchase department would be issuing PO for SCM to FCCL and a separate PO for LnT to 3rd party.
Requirement
(i) The costs of LnT has to be part of the cost of SCM;
(ii) The total cost of SCM (including material cost and LnT cost) would be charged to single account code in the series of 52 (manufacturing expenses); and
(iii) The tax deduction rates for material cost, loading cost and transportation cost are all different and should be applied accordingly.