Stock Transfer – Branch Accounting under GST in tally erp 9
Table of Contents
- 1 Group creation for Stock transfer
- 2 Group Creation in Head office’s Book of accounts.
- 3 Ledger Creation For stock transfer
- 4 Accounting entries of stock transfer In the Books of Head Office & Branch
- 5 Goods transfer intra-state branch with same GSTIN
- 6 How to enter Goods transfer to branch with Same GSTIN in Tally erp 9 ?
- 7 Goods transfer to interstate Branch with different GSTIN Tally Entry.
- 8 How to enter Goods transfer to branch with Differnet GSTIN in Tally erp 9 ?
- 9 Reports of Stock transfer in tally
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Stock transfer is an important factor of business having multiple branches in different locations. Stock transferring between branches cannot be considered as sale as it is just movement of goods between branches of same business. Stock transfer may be the supply goods to a branch where that item is not available. This may be inter state or intra-state. Inter state stock transfer means stock movement to a branch situated in another state.
Example Scenario : ABC Ltd is a business of Mobile Trading in Kannur, Kerala it has three branches, The details as follows
|ABC Ltd||Kannur||Kerala||32AADCB2230M1Z2||Head Office|
|ABC Ltd||Calicut||Kerala||32AADCB2230M1Z2||Branch Office|
|ABC Ltd||Cochin||Kerala||32AAACI1681G1ZY||Branch Office|
|ABC Ltd||South Delhi||Delhi||07AAACB5343E1Z3||Branch Office|
The business in each location transfer goods from one location to another. Let’s see how these inter branch transactions are entered in tally erp 9 under GST law.
Group creation for Stock transfer
For Branch accounting in tally erp 9, You need to create a group for easy classification and identification of inter branch transactions. You can put all inter branch transactions under sales and purchase directly if needed. But this will create problems in identifying stock transfer & sales /purchases. When you create a group for stock transfer, It will show separately in Profit and loss account and do not mix up with purchase and sale.
Group Creation in Head office’s Book of accounts.
Accounts info > Group > Create
Stock Transfer From Branch
Under : Purchase Account
Stock Transfer to Branch
Under : Sales Account
Group Creation in Branch’s Book of Account
Stock Transfer to Ho
Stock Transfer From HO
Ledger Creation For stock transfer
Accounting Info > Ledger > Create
In Head office Book – Following ledger need to be created
Create Ledger to account for accounting stock from branches = Stock transfer Inward
Create a Stock Transfer outward Ledger account for accounting stock transfer to Branch.
Create all Branches Ledger Under Group Branches & Division in HO books
In the same way create ledger
Abc Ltd-Calicut – Under Branch/Divisions
Abc Ltd-Delhi – Under Branch/Divisions
In Branch’s Book – Following ledger needs to be created.
Create a ledger Stock Transfer inward to account stock from HO
Create a Stock Transfer Outward Ledger to account stock to Head office.
A head office account under Branch/Division- For Ex ABC Ltd -HO
Note: Create a separate voucher type for Branch transfer entry Under sales & Purchase if you needed, So that your entries will stand out from sales and purchase vouchers. In This example I have note used voucher type.
Learn More : creating voucher type
Accounting entries of stock transfer In the Books of Head Office & Branch
Now let’s learn the accounting entries of stock transfers, What are the entries in the books of Head office and branch in each cases.
Goods transfer intra-state branch with same GSTIN
Intra-state meaning within the state, or In same state. If the GSTIN of the Ho & Branch is same there is no Tax is chargeable Under GST.
Example : Abc Ltd Transferred 10 Nos of Mobile charger @ 250 to it’s Branch Abc Ltd-Calicut
As We know ABC Ltd calicut is the branch office with similar GSTIN.
How to enter Goods transfer to branch with Same GSTIN in Tally erp 9 ?
In the books of HO
Accounting Voucher > F8 Sales
During this entry You should Select tax classification details as ” Branch Transfer Outward ” as shown in the below image.
If this is not appearing in your voucher entry screen do the following.
Click on F12 Configure
Allow Modification of tax details for GST : Yes
This will Automatically displayed.
If you view tax analysis by clicking Tax analysis button in sales voucher or use Shortcut Alt +A, you will find the tax details as shown below.
The system will tell you no tax is need to be charged.
Now in the books of Branch office
The same transaction is become stock Transfer from HO In Branch’s book .Let’s see how this is entered.
Abc Ltd- Calicut Received 10 Nos of Mobile charger @ 250 From HO Abc Ltd
This is recorded in Purchases Voucher by Branch office.
Accounting Voucher > F9 Purchase
Select tax classification details as ” Branch Transfer Inward”.
In the Tax Analysis you will find the same.
Goods transfer to interstate Branch with different GSTIN Tally Entry.
Business May Have branches in different states other than the state of its Head Office exist. For branches in other states will have a separate Registration and GSTIN. In such Case we will Have transactions like stock transfers to Head office and Head office to branches. These transactions are taxable and charged to IGST under GST.
Example : ABC Ltd- Delhi Transferred 25 Nos of Mobile phone to ABC Ltd ( HO) @ 15000. Let’s see How this is accounted.
In The books of HO
Accounting Voucher > Purchase
Party name: Select the interstate branch office.
Purchase Ledger : Stock transfer inward.
Select Tax Ledger: IGST
Important: Make sure that you had nothing selected in Tax classification Details
In the book of Branch Office
Stock Transfer to Head office ( Inter-state)
How to enter Goods transfer to branch with Differnet GSTIN in Tally erp 9 ?
Under GST Law Intra-state transfer is taxable only when the BRANCH OFFICE have a distinct GSTIN other than HO. In such case ,Such branch office is considered as a separate entity nd chargeable to tax as buyer. CGST & SGST are chargeable in this case.
Example: ABC Ltd ( HO) send 100 No memory cards to ABC Ltd cochin @ 300 each.
In Branch’s Book
Accounting Voucher > Purchase
Tax classification details
In HO books
Accounting Voucher >Sales
Tax classification details
Reports of Stock transfer in tally
We have created a separate group to place the stock transfer ,So that you can segregate stock transfer from sales & Purchase in your report.
For example we can take the Profit and loss account of HO.
Gateway of tally> Profit & Loss account.
See the Stock transfer from branch & Stock transfer to Branch separately.
Display > Statutory Reports > GSTR reports ( GSTR-1,2-3B)
You will find the following.
Only stock transfer of interstate & intra state with different GSTIN than HO is charged to tax payable.
Branches with same GSTIN of HO ‘s stock transfer are not charged to tax.
Display > Statutory Reports > GSTR-2.