To understand better, please refer to the below.
I am a trader from India Exporting Agriculture commodity like Rice and Salt. I need to file Monthly GST.
Example I have received order for Rice from a customer from Overseas. I need to supply 26 Metric Ton of rice packed in 25KG bags. So total 1040 bags.
I place order with Rice mill for loose rice. I don't hold inventory for rice. If required I can hold inventory for transaction purpose.
In order to Packing material for rice, I need to supply Rice Bags. Each bag we can hold 25KG rice. Bag supplier typically need Minimum order quantity of 5000 bags. So after 1040 bags usage balance 3960 becomes inventory. I can consume latter.
When I invoice to my customer, I don't invoice Rice separately, Bag Separately. I invoice combined Invoice as below
Example my Invoice
My Purchase price consists of
- Loose Rice
- Bag Cost
- Delivery Transportation cost
- Customs Charges
- Ocean Freight and Shipment Charges
- Forex Loss/Gain
- Bank charges
I will know the Loose rice price upfront.
I will know the Bag cost upfront
I won't know the Shipment cost, Customs cost etc. Forex rate etc. it can change. So I can only estimate.
I need help to determine the best way to use Quickbooks.
1)While creating product do I need to Specify Purchase cost? Since I know only estimate. How this purchase cost is used while creating financial statement?
2) What will happen I simply have a product with 0 as Purchase cost, and sell at say USD 375 as selling price with 0% GST.?
2) Do I have to create Bundled product? My concern is in Bundled product, I did not see any provision to specify HSN code, GST is related to HSN code. So It may be a bottleneckin Quickbooks. or I am unaware of workaround. Request your advise.
3) Even if I create a bundled product, which consists of Loose Rice , Bags (40Bags per ton),
- Loose rice do not have GST (0% GST)
- My Packaged product (Rice) while selling I have 0% GST
- The bag has 18% GST while buying. While selling if I put bag as an item, I incur 18% GST. Since I am not selling bag separately, I need to consume inventory. So how do I handle?
I can manually handle Inventory for bags. not an issue. I am also new to quickbooks so I want relatively simple.
1) All Bills and Expenses to be accounted
2) Able to create Multi currency invoce
3) Able to file monthly GST return
4) Need to know profit and loss, create financial statement for Income tax filing.
What is the simple way to use Quickbooks given my situation and requirements.
I thought as follows, share me your opening for me to understand
a) Create product as 0 as purchase price. and specify selling price
b) All Bills enter (Including Loose rice, Bag). Don't keep inventory tracking
c) All Customs , freight , etc treat as bills enter as an when it comes.
Do you think it meeting my requirement?
I am trying learn and do. So need your help to enlighten me and understand best practices to use quick books effectively
Thank you in advance
I understand few things
1. You by loose and sell in bags
2. You want your Bill of entry to appear in delivery challan
1) All Bills and Expenses to be accounted - Yes this can be done
2) Able to create Multi currency invoce - Yes this can be done just enable multi currency option from setting , just remember once you enable you cannot disable.
3) Able to file monthly GST return - You this can be done
4) Need to know profit and loss, create financial statement for Income tax filing. - You this can be done
For more details how this works we can have a call and get this done.
CA Alok Shah