Octroi Tax On Purchase P2P Account Entries

Hi India Localization team

Please le me Know the account entries for Octroi tax

At the time of receipt as non recoverable tax attach to third partytax of Sales tax authority

System genearting entry at the time of receipt

Receving A/c Dr

  To AP Accrual Cr

At the time of Invoice below entry genrated manually but AP accrual amount is not knock off

  Sales tax Authority A/c Dr

       To Supplier Liabilty A/C

Please let us know how to knock of the AP accrual and what is Standard Procedure

Thanks,

Sreenivasulu

Ador Welding Ltd