Automate Reversal JV

The Problem With the Current Manual Flow:

Currently, accountants must manually create a multi-line Reversal Journal Voucher (JV) to:

1. Debit the Foreign Vendor for the total overhead costs (reducing the vendor’s liability to only the basic commercial price).
2. Credit each separate overhead expense ledger (Import Duty, SWC, Clearing, Transportation, Freight).

This manual process requires calculating values across multiple documents, manually mapping 5 to 6 chart of account codes, and carries a high risk of date and value mismatches.

The New Automated Solution:

With the new Automated Reversal JV feature, the system will automatically generate the reversal accounting entries directly from the Import Document (Landed Cost) module. Users will no longer need to create manual JVs.

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What the User Needs to Do: Step-by-Step 🛠️

All the user has to do is one single one-time setup, followed by a simple Yes/No prompt whenever creating an import document.

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Step 1: One-Time Setup in Transaction Type Master ⚙️

Before using this feature for the first time, your finance team maps the 5 standard import overhead categories to your company’s Chart of Accounts.

1. Navigate to: Accounts —> [Transaction Type Master]
2. You will find the 5 predefined Transaction Types
   • Import Duty
   • Social Welfare Surcharge
   • Clearing Charges
   • Transportation Charges
   • Freight Amount
3. Click the “Update A/c Codes” button at the bottom of the screen (or click on individual transaction codes to modify).
4. Select the corresponding Main Account and Sub Account from your ledger:

Transaction Type	Description	Sample Ledger Account (MainAc / SubAc)
1. Import Duty	Customs Basic Duty on imports	Import Duty A/c
2. Social Welfare Surcharge	SWC duty assessed on Bill of Entry	Social Welfare Surcharge A/c (or combined Duty A/c)
3. Clearing Charges	Port and customs clearance charges	Clearing & Forwarding Charges A/c
4. Transportation Charges	Port-to-factory freight/cartage	Transportation / Cartage Inward A/c
5. Freight Amount	International Ocean / Air shipping freight	Freight Inward A/c (or Ocean Freight A/c)

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Step 2: Creating the Import Document 📋

When your import consignment arrives and you create the Landed Cost record:

1. Navigate to: Import Document Create
2. Fill in the standard shipment details (Party, Unit, BE No, Exchange Rate, Freight, Clearing, Transport).
3. After clicking Submit, you will see the new prompt: Create Reversal JV [ Yes / No ]

If you select “No”:

• The system saves the Import Document without generating any reversal entries (preserving standard behavior).

If you select “Yes”:

The system performs an automatic Pre-flight Validation Guard:

• It checks whether all 5 Transaction Types in trntypemst have their Main Account and Sub Account mapped.
• If any account is missing: The system displays an error alert and blocks saving:

  Warning

  “Account mapping missing for [Clearing Charges]. Please configure A/c codes in Transaction Type Master before creating reversal JV.”

• If all accounts are configured: The system displays a date selector:Reversal JV Date : dd-MMM-yyyy
• Select the desired accounting date for the reversal (typically the Bill of Entry Date or Clearance Date).
• Click Save.

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3. What the System Does Automatically Behind the Scenes 🤖

Once you save the Import Document with Create Reversal JV = Yes:

1. Calculates the Overhead Apportionment:
2. Generates the Reversal Entry Automatically:

4. Key Benefits for Your Team 🌟

1. Zero Manual Math: No need to calculate line splits or check whether debits equal credits by hand.
2. Zero Missing Overheads: Every single expense entered on the Import Document is accounted for without omission.
3. Audit-Proof & Traceable: Reversal entries are tied directly to the Bill of Entry number and Import Document reference.
4. Instant Closing: Month-end financial reporting and landed cost adjustments occur simultaneously with warehouse intake.

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