Summary of Post
This is a guide to configure voucher class when you are selling products inclusive of VAT.Many shops displaying products price inclusive of tax. In such cases business have to segregate the tax component and price component when they put into billing.
Many are using calculator to segregate the tax and price, and some are using Tally in built calculator by pressing Alt + C from amount field.
Now the paly is over ,after Voucher class invention ,The task become easier than ever.We can automate this process of segregation by following the steps mentioned below.
Let’s consider the following scenario for this Tutorial.
How to segregate Sale vale and VAT from selling prize inclusive of Tax?
Before moving on to the Tally Lets learn a manual calculation
Computer Toal Selling Price = 27000 which includes Tax
VAT Rate is 4%
These are the known factors to us
The formula to find out the sale value without tax is
27000 x 100/104 = 25960
Hence VAT = 27000-25960 = 1040
If your Tax rate is 12.5% Use 112.5 instead of 104
Percentage of sale value and VAT for Voucher Class Set-up
For setting up Voucher class we want to know the percentage of Sale Value and VAT components included in that total sale price,rather than knowing its value. Here is the way.
Hope You got an idea, still have doubt, comment below, any maths expert will help you :),I am afraid of maths.
Create a voucher class for sales voucher type
Gateway ofTally>Accounts Info >Voucher Types>Alter
Select ‘Sales ‘ Voucher type.
Continue to press enter key until the cursor reaches ‘Name of class”.Enter the name of the class as you wish. Lets name it ‘sales4%.
Press Enter Key to move on to the next step.You will have another screen called ‘Voucher Type Class’.
In default accounting allocation for all items in invoice make sure that the accurate percentage
For sales ledger and VAT Ledger from the above calculation
See the screen shot
Press enter and save & save voucher type alteration screen also.
Voucher class is created now
Sales voucher entry using voucher class.
Gateway of tally>Accounting Voucher>F8
Enter the sales transaction as usual, here you don’t have to select VAT ledger & sales ledger.
Just select stock item, total selling price and save. That’s it.
Now lets check the Ledger of VAT and sales, Just want to check whether the amounts allocated accurately.
Gateway of tally>Display>Account Book>Ledger
Sales 4% Ledger Balance = Rs 259605.00
Output Vat 4 % Balance = Rs 10395.00
Total = 270000.00
So total tallies ,there is no mismatch found.
In Tally ERP9 Release 5 onwards sales invoicing inclusive of tax become even easier. Hope this tutorial helps for earlier version users.