Purchase

Set Input Credit or Resale Eligibility on a Purchase

The purchase eligibility checkbox controls whether saved purchase tax enters Posnic's Tax Payable input-credit calculation. It does not change tax rates, item cost, stock or the supplier invoice.

Menu path: Purchase -> Purchases -> New Purchase or Edit -> Input credit claimable
Verified from: Posnic demo and current POS source reviewed on 2026-09-08

Technical source evidence

frontend/modules/receivings_write.html receiving_itc_eligible, frontend/static/script/js/modules/js/receiving_add.js applyTaxRegimeWording save edit and No credit badge, api/src/models/receiving.model.js itc_eligible, api/src/repositories/sale.repository.js taxPayablePage and taxPayableRegisterPage, api/src/services/tax-regime.js creditFlagLabel

Live Posnic Edit Purchase form showing the checked Input credit claimable control beside Exclusive Tax — **Set eligibility on the purchase**Review the eligibility control for each supplier invoice; the default checked state is not a substitute for tax review.

Posnic Tax Payable report with monthly output input net payable and purchase register controls — **Verify eligible input credit**Tax Payable excludes purchases explicitly marked ineligible and exposes the supporting purchase register.

Posnic Tax Summary report showing sales and purchase tax by rate — **Use Tax Summary only as a cross-check**Tax Summary is a broad purchase-tax control total and does not apply the eligibility flag in the same way as Tax Payable.

What the Control Changes

Area	When selected	When cleared
Saved purchase	Stores the purchase as eligible; older records with no stored flag are also treated as eligible.	Stores itc_eligible as false.
Open purchase document	No exception badge is added.	Shows a No credit badge.
Tax Payable input credit	Non-cancelled saved purchase tax can enter the monthly input side.	Purchase is excluded from the input-credit aggregation.
Purchase register	ITC eligibility is visible for invoice-by-invoice review.	The record remains visible as an ineligible purchase.
Tax Summary	Purchase tax remains part of its broad receiving-tax comparison.	The broad Tax Summary does not apply this eligibility rule.
Stock and item cost	No change caused by this flag.	No change caused by this flag.

Read the Label for the Shop's Tax Regime

Regime	Screen wording	Operator meaning
VAT/GST credit regime	Input credit claimable	Select only when the purchase tax is legally and evidentially eligible for credit.
Sales-tax regime	Purchased for resale (tax-exempt)	Select when the purchase qualifies under the shop's resale treatment and documentation.
No consumption tax	Control is hidden	There is no input-credit decision on this purchase screen.
India regular GST	Input credit claimable	Review supplier status, invoice, business use and applicable blocked-credit rules.
Composition or unregistered supplier	Same GST control may remain visible	The operator must clear it when no input credit is available; supplier type does not automatically make the decision here.

Decide Eligibility from Evidence

Confirm the open branch and its tax regime in Manage -> Tax.
Verify the supplier identity, registration number and supplier type.
Open the supplier invoice and confirm it belongs to this purchase.
Check whether the goods or services are for taxable business activity or qualifying resale.
Check composition-scheme, unregistered-supplier, personal-use and blocked-credit restrictions with the accountant.
Select or clear the purchase eligibility control based on that evidence.
Record an explanation or retain approval evidence when the purchase is material or unusual.

Set the Flag on Purchase Entry

Open Purchase -> Purchases -> New Purchase, or open an eligible purchase and select Edit.
Complete supplier, items, quantities, purchase costs, tax mode and additional charges.
Locate Input credit claimable, or Purchased for resale (tax-exempt) in a sales-tax shop.
Leave it selected only after the evidence review supports eligibility.
Clear it for composition-scheme purchases, blocked credits or other ineligible transactions according to policy.
Attach the supplier invoice and supporting evidence when required.
Save once, reopen the purchase and confirm a No credit badge appears when the flag was cleared.

What the Flag Does Not Do

It does not validate a supplier tax registration number.
It does not decide eligibility from the supplier category automatically.
It does not remove tax from the supplier invoice or purchase document.
It does not change item tax rates, inclusive/exclusive calculation or additional charges.
It does not change received quantity, stock movement or unit purchase cost.
It does not file a tax return, match an external statement or prove a legal claim.

Verify in Tax Payable

Open Reports -> Money -> Tax Payable.
Use the exact branch and reporting dates that contain the purchase.
Run the report and wait for both the monthly summary and purchase register.
Find the purchase by ID, date and supplier.
Confirm its ITC Yes/No state and inspect supplier tax ID, tax heads, mismatch and document evidence.
Confirm ineligible and cancelled purchases do not contribute to the monthly input-credit total.
Export CSV only after resolving material exceptions and obtaining accountant review.

Understand Historical and Report Differences

Situation	Current behavior	Required control
Older purchase has no eligibility field	Tax Payable treats absent as eligible for backward compatibility.	Manually review older material invoices before relying on credit.
Purchase explicitly set to No	Excluded from Tax Payable input aggregation but remains in the register.	Confirm the reason and preserve evidence.
Purchase is Cancelled	Excluded from Tax Payable regardless of eligibility flag.	Verify cancellation and stock/tax audit history.
Tax Summary exceeds Tax Payable input	Tax Summary is broad; Tax Payable removes ineligible and cancelled purchases.	Reconcile the difference through the purchase register.
Item tax rate changed later	Historical purchase tax remains as saved.	Correct source documents only through an approved historical correction workflow.

Correct an Eligibility Mistake

Open the purchase and verify the supplier invoice and existing No credit state.
Obtain approval for a historical tax-eligibility change.
Select Edit only when the purchase status and employee permissions allow it.
Change only the eligibility control unless another evidenced error also exists.
Save and reopen the same purchase number.
Run Tax Payable again for the identical date range and confirm the register and monthly input total changed as expected.
Retain the approval and corrected report export with the accounting workpapers.

Troubleshooting and Period Review

Problem	Likely reason	Controlled response
Eligibility control is missing	The branch uses the no-consumption-tax regime or the page has not loaded tax-profile wording.	Verify Manage -> Tax and refresh once before assuming the field is unavailable.
Label says Purchased for resale	The branch resolves to a sales-tax regime.	Apply resale-certificate policy, not VAT/GST input-credit logic.
No credit badge is absent	The purchase is eligible, old with no field, or the view is stale.	Reopen the purchase and verify the saved value through Tax Payable register.
Tax Payable still includes an ineligible purchase	Wrong dates/branch, stale report, or correction did not save.	Refresh, rerun the exact range and inspect the purchase register row.
Tax Summary still includes its tax	That report intentionally uses a broader purchase-tax aggregation.	Use Tax Payable as the eligibility working paper and reconcile the difference.
Cannot change the flag	Status or Purchase / Receiving Write permission prevents edit.	Preserve evidence and use the accountant-approved correction route.
Supplier type and flag disagree	Eligibility is not automatically derived from supplier classification.	Review the invoice and correct the purchase flag with authorization.