| Description |
*FAQ:*
If a weight claim is created and it is less than the franchies amount - the prepaid should be written off.
* If when you process claims the weight claim is less than the franchise fee the prepaid should be written off.
*Process of weight claim.*
1. Contract will be created for $1,000 5,000 kg 20 cents per kg (with franchise 5% of the contract weight then multipling by the contract rate)
2. Prepayment will be created for $1000 5000 kg @20 cents
2. Inbound shipment will be created agains the contract.
3. Inventory Receipt will be created for $940 4700 kg @20 cents
4. Voucher will be created for $900 and 4700 kg and use the prepayment $900 4700 kg.
5. Franchise weight is 5% - 250 kg (contract weight of 5000kg * 5%
5. Weight claim will be created for 50 kg (5000 contract - 4700 receipted - 250 Franchise)
weight claim in dollars will be 50kg. *20 cents (contract rate) = $10
6. Debit memo will be created for 250 kg @20 cents= $50
7. When we post refund, we will use debit AP 50$ Prepayment ($60), Weight claim Account ($10).
|Steps|Debit Account|Credit Account|
|Enter Contract|n/a|n.a|
|Create Prepaid (including payment)|AP |Cash|
|Inventory receipt|Inventory|Purchase clearing|
|Match inventory receipt to prepaid|Purchase clearing|Accounts payable|
|Create claim|None|None|
|Process claim in AP|AP and Franchise expense|AP|
| | | |
If we dont create an offset transaction for the Prepaid when the claim is created then the account would have both the claim and the prepaid on it. this would be inaccurate.
Steps: Create claims and open Recap screen
Issue: Claims have entries for AP Account and Expense account only.
*Acceptance Criteria:* Claims should have entries for:
* Dr - Cash Account for Claim Amount
* Dr - Expense Account for the Franchise Wt Amount
* Cr - Prepaid Account for the Total Amount (Claim + Franchise Wt Amount)
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Another account (Expense) is needed for Franchise Wt Amount entry.
1. We can either use the Expense Account set in Vendor screen. But this field on vendor is not required so its unavoidable that this field will be empty. In case this happens, a message should prompt the user that Expense Account is missing.
2. Or, we can add another column in Claims screen where we can setup Expense Account for claims. This is also advisable if they have specific accounts used for Franchise Allowances
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