PURCHASE RETURNS

Accounting Purchase Returns

To record Purchase Returns transaction

Go to Gateway of Tally > Accounting Vouchers > Debit Note (Ctrl + F9)

1. Select the Excise Debit Note from the List of Voucher Types

2. Select Alt+I: Item Invoice, if the voucher is in Acct invoice mode

3. Enter the reference number in the Ref. field. E.g. 6784

4. Excise Unit field displays the unit name as selected during voucher Type creation

5. Select the party name in the Party’s A/c Name field. E.g. Sterling Steel Industries

6. Enter the corresponding details in the Party Details.

7. Select the Purchase ledger to be allocated. E.g. Purchases @ 4%

8. Select the Name of the stock item from the list of Excise Stock Items

9. The Excise Details sub form for the Stock Item is displayed

10. In the Excise Details screen

· Select the Supplier Invoice Number - 457 from the List of Purchases

· Enter the Quantity returned as 15

· Assessable Value will be defaulted automatically.

11. Press enter to accept the Excise Details and the Debit Note screen reappears

12. Enter Rate as Rs. 2329.60 and the Amount is automatically displayed

13. Select Input VAT ledger and press Enter, the VAT Amount is automatically calculated and predefined.

14. Set Show Statutory Details to Yes to view Statutory Details of the transaction.

15. In Bill-wise Details screen, Select Angst Ref and select the Bill No. as 457

16. Press Enter to accept and save.

Creating VAT Ledgers

Input VAT

To create a Input VAT Ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1. Enter the Name of the Input VAT ledger you wish to create, for e.g., Input VAT @ 4%

2. Select Duties & Taxes as the group name in the Under field.

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.

4. Select the requisite VAT/Tax Class, for e.g., Input VAT @ 4% from the VAT/TAX Class list.

5. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.

6. For Rounding Method select as Not Applicable

7. Press Enter to Accept to save

Note: It is recommended to create separate Input VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Input VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.

Output VAT

To create a Output VAT Ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1. Enter the Name of the output VAT ledger you wish to create, for e.g., Output VAT @ 4%

2. Select Duties & Taxes as the group name in the under field.

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.

4. Select the requisite VAT/Tax Class, for e.g., Output VAT @ 4% from the VAT/TAX Class list.

5. Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.

6. Press Enter to Accept to save

Note: It is recommended to create separate Output VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Output VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.

CST (CENTRAL SALES TAX)

INTEREST CALCULATIONS IN SIMPLE MODE

Interest Calculation in Simple Mode

To calculate Interest in the Simple Mode:

1. Go to Gateway of Tally> F11: Features> Accounting Features > Set Activate Interest Calculation to Yes. > Set Use Advanced Parameters to No.

2. In the Ledger Creation screen set Activate Interest Calculation to Yes.

3. The Interest Parameters sub screen is displayed. Enter the Rate and select the interest style from the list.

Interest calculations on outstanding balances:

Enter Interest details in Vouchers (only in case of transaction by transaction/Bill-by-bill) and view Interest reports.

You will have to alter existing ledger accounts to permit interest calculations on them. The same operation will apply when creating a new ledger account.

Interest calculation on outstanding balances is allowed for any ledger account. You simply specify the interest rate and style of calculation. Nothing is required to be done for interest during voucher entry.

Let's take an example: Interest calculated on Outstanding Balances.

1. Go to Gateway of Tally> Accounts Info.> Ledgers> Alter (Single)> XY Bank (bank account)

2. Set Activate interest Calculation to Yes.

3. On activation, the Interest Parameters must be set. It is the basis on which interest will be calculated for this Ledger account.

4. Rate: This is the rate at which the interest has to be calculated. In this case, specify 15%.

5. Interest Style: It is the basis on which the rate is applied. Of the four options, select 365-Day Year.

6. Accept the screen.

You can now view the amount of interest that could be charged by the Bank.

Report on Interest Calculated on outstanding balances:

The Interest Calculations Report can be displayed and printed.

Go to Gateway of Tally> Display> Statements of Accounts> Interest Calculations> Ledger> XY Bank (Bank Account)

Interest calculation transaction by transaction:

Activate and specify interest calculations in ledger masters.

Transaction by transaction or Bill-by-Bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors. For example:

1. Alter a Customer account (under the group Sundry Debtors or one of its sub-groups).

2. Set Activate Interest Calculation to Yes. In the Interest Parameters now you have three lines to answer.

3. Set Calculate Interest Transaction-by-transaction to Yes.

4. Set Over-ride Parameters for each transaction to No.

If set to No, you are not allowed to change interest parameters in voucher/invoice entry. If set to Yes, you can change the interest parameters during entry.

Report on Interest Calculated on outstanding transactions/bills:

To view the Interest calculated

Go to Gateway of Tally> Display> Statements of Accounts> Interest Calculations> Ledger> CP Ltd

The report is similar to the Bill-wise Outstanding Statement. The last column gives the interest amount on the transaction. Select the line to be viewed in detail for its calculations.