India GST - IR/ISO - Internal Stock Transfer - Intransit Inventory Hits For Tax Entries

Hi Experts,

This is upgrade from 11.5.10.2 to 12.2.6 along with GST implementations.

Business transfers stock from one location to another location across state. So GST tax is applicable.

The base journals entries looks OK.

But business doesn't want Intransit inventory account for Tax journals during ship confirm.(FOB Shipment).

In above entries, After ship confirm, Tax liability hits credit side along with intransit inventory hits in the debit side. And, the same is getting knocked off after perform the GRN.

But the business faces the problem during month end transactions (ship confirm in the same month but GRN in next month). So, their intransit inventory balance in TP will show the balances along with item + Tax.