Professional Documents
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Email: deepakprasad2012@gmail.com
Lesson 1
Ledgers & Group
All financial entries are made using ledger account heads. Every transactions of the same nature are classified under one group. A group is a collection of ledgers which have similar transaction.
Accounting Voucher
Contra Voucher (F4) Payment Voucher (F5) Receipt Voucher (F6) Journal Voucher (F7) Sales Voucher (F8)
KEY
F2 F4
FUNCTIONALITY
To change the data. To select the contra voucher. To view the list of group.
AVAILABILITY
At almost all screen in Tally. At accounting voucher creation and alteration screen. At the trial balance, cash/bank summary, group summary and group voucher screen. At the ledger voucher screen. At the journal register and daybook screen. At accounting voucher creation and alteration screen. At the trial balance, cash/bank summary and group summary screen. At accounting voucher creation and alteration screen. At accounting creation and alteration screen. At the ledger voucher screen. At the group summary and group voucher screen. At the reports screen, Trial balance, account book and day book screen. At almost all screen in Tally. At almost all screen in Tally.
To view the list of ledger. To change voucher type. 3. F5 To select the payment voucher. To switch between grouped and ledger-wise display. To select the receipt voucher. To select the journal voucher. To view the monthly summary. To switch between group summary and group voucher. Navigate between accounting reports. To select the features screen. To select the configure screen.
4. 5.
F6 F7
6. 7. 8.
KEY
Alt+F1 Alt+F2 Alt+F3
FUNCTIONALITY
To close a company. To view a detailed report To explore a line into its details. To change period. To select the company info menu. To create /alter /shut a company. To create a ledger at a voucher screen
AVAILABILITY
At all menu screen. At almost all report screen. At almost all screen. At almost all screen. At gateway of Tally screen.
4.
Alt+C
5. 6.
Alt+N Alt+P
7.
Ctrl+Q
To print reports. To quit a screen wherever you use this key combination, it quits that screen without making any changes. It does not ask for confirmation from the user before quitting.
At accounting voucher and alteration screen, at a filed where you have to select a ledger from a list. If the required ledger account has not been created earlier, use the key combination to create the ledger without quitting from the accounting voucher screen. At all the reports, trial balance, cash/bank book(s), group summary and journal register screen. At all the reports, trial balance, cash/bank book(s), group summary and journal register screen. At all reports screen. At almost all screen.
1.
Enter
2.
Esc
field. To come out of a screen. To indicate that you do not want to accept voucher or ledger. To view the next level of details and condense the next level or details. At the balance sheet, P/L A/C, trial balance, cash/bank book(s), group summary, group voucher, register, day book and list of accounts screen.
3.
Shift+Enter
1.5.2 Posting
Posting is the process by which information about transaction is transferred or moved to an account.
The Profit and Loss Account gives the Net Profit earned by the company. After considering all other incomes and expenses incurred over a period. This helps the company monitor and control the costs incurred and improve its efficiency. In other words, profit and loss statement shows the performance of the company in terms of profit or losses over a specified period. A key element of the Profit and Loss Account, and one that distinguishes it from a balance sheet, is that the amounts shown on the statements represent transaction over a period of time, while the items represented on the balance sheet show information as on a specific date. All revenue and expenses account are closed once the profit and loss account is prepared. They will not have on opening balance for the next accounting cycle.
Lesson 2
2.1 Service organization.
Service is defined as work done for others in lieu of a payment or a price. Service do not have a physical from or substance. An organization providing service is called a service organisation .
Figure 2.2 Accounting in a Trading organisation. The trader must keep track of stock availability, customer requirement, cost of procurement and market changes. The accountant in a trading organisation has to maintain up dated inventory records a part from regular accounting.
After finding suitable answers to these questions, the manufacturer, may decide to. Product goods and stock them for sales. Product goods against customer orders. Keep sub - components at a strategic location, to assemble the final product and deliver it to the customer in time.
Finished goods
A company needs to account for inventories like raw materials, work-in-process (W/P) and finished goods to arrive at the profit made for the period. Change in inventory valuation method change the profit made during the period. Accounting in manufacturing organisation requires more planning, preparation and scheduling as compared to accounting in trading and service organisation. Calculating cost of sales is relatively complex in manufacturing organisation as compared to that of trading organisation. Research and development costs in manufacturing organisation are relatively higher as compared to R&D costs in trading organisation.
Bank reconciliation.
Customizable sales invoice using price lists with multiple prices. Sales and purchase order processing.
ADVANCED ACCOUNTING Multiple companies. Multi currency. Multiple financial years. Comparison of data using multi-columnar reporting. Memo voucher. Post dated voucher. User defined voucher types. Sales and purchase extracts. Cash flow statement. Daily balances and transaction value/ Interest calculations. Percentage based reporting. Ratio analysis.
ADVANCED INVENTORY Stock items classified as raw materials, work - in progress, finished goods. Bill of material with auto adjustment of stocks. Job working concepts, including sub contracting. Additional cost of manufacturing with national value and percentage. Excise / Vat analysis on invoices. Modvat support. Recorder levels. Stock ageing analysis. Batch related stock reports.
Vat introduction.
Value Added Tax is a tax levied on the sale of tangible goods, which according to their nature and legal status, may be movable, immovable, or intangible assets. The Government appoints VAT collectors, who collect the VAT due from goods purchase or service received and forward the payments to the state treasury. VAT collectors include production sharing contractors (PSCS), Government treasurer companies, or Government institution appointed by the Minister of Finance.
Taxable year Taxable year Taxable year is a calendar year unless the taxpayer adopts an accounting year. Which is different from the calendar year?
VAT in Tally
Vat for Indonesia in Tally is simple and easy to use with in built class fications for easy voucher entry. It tracks all VAT enabled transactions and computer them automatically. Transaction can be recorded in foreign currency. Tally allows the generation of simple and standard invoices as well VAT return formsin Government prescribed formats.
6.
By default Inventory values are affected is set to No which can be set to Yes it applicable Set Percentage of Calculation to the VAT rate that you selected in the VAT/Tax Class field or set is to 0% Select the Method of Calculation on VAT Rate from Type of Duty menu.
7.
8.
Cost Categories
Let us take an example. 1. Create three cost categories named Departments, Executives and Projects. 2. Create three cost centres named Marketing, Manufacturing and Finance under the Cost Category Departments, Create three Cost Centres Salesman A, Salesman B and Salesman C under the Cost Category Executives. Create three Cost Centres Airports, Roads and Buildings under the Cost Category Projects. The structure for creating Cost Categories and Cost Centres are shown below. Cost Categories Cost Centres Departments Marketing Manufacturing Finance Executives Salesman A Salesman B Salesman C Projects Airports Roads Buildings
You can specify a cost category to allow allocation of only revenue items or items of both revenue and capital nature. In this example, allow allocation of items of both revenue and capital in nature for both Departments and Projects categories and items of only revenue in nature for Executives. Now, salesman A, incurs conveyance expenses. If he has incurred it for marketing, allocate this amount to the cost centres marketing and his own cost centre salesman A. (you would do it while entering a payment voucher debiting conveyance and crediting cash). If the salesman A now incurs expense for the project Buildings, you would allocate to the cost centres salesman A and Buildings. You may allocate an expense to one or more cost centres and it is not essential to always allocate to all cost centres. An expense can remain unallocated to other cost centres. In case cost categories are not enabled, you will be able to allocate the expense to either building cost centre under projects or salesman A under Executives and not to both. In such a case, you would not obtain the third dimension. You may not have cost categories activated if you do not need to without cost categories, you will allocate the ledger amount to only one set of cost centre, and not to parallel sets.
Hence, you would allocate the conveyance expense to salesman A only and not to both salesman A and project buildings. You can allocate the expense partly to salesman A and party to project building that adds up to the total amount. This information will not enable you to know now much salesman A spent for the project buildings. Note: you do not allocate transaction to cost categories y allocate them to cost centres only. The concept is like group / ledger account classification. Cost centre allocations have to be done in pop-up sub-screen in the main voucher entry screen. The sub-screen pops up after the amount field pertaining to the ledger for which cost centres have been activated. Hence, the following is the sub-screen for the ledger Conveyance amount in a payment voucher.
Cost Allocations for: Conveyance Upto: Rs. 1.000.00 Dr Cost category Name of cost centre Executives Salesman A Salesman B Project Buildings
Amount
ABC
Mailing Details Name : Address : State : Pin code : Contact person : Telephone No : Fax : E - mail : Tax Information Pan/It No : Sales Tax No :
: 1.000
cost centres have been activated. The sub-screen for the ledger conveyance and in a payment voucher appears as shown below.
Cost Allocations for: Conveyance Upto: Rs. 1,00,500,00 Dr Cost category Name of cost centre Executives Salesman A Salesman B Project Buildings
Amount
Price Levels
Customers can be assigned to specific price lists, called price levels in Tally. So that only the relevant price is used during entry of orders and invoices. Before you begin creating price lists, you should decide whether you want different price levels. In a running business, you will already know that. You might want different price levels for various reasons; e.g. different types of customers like wholesale customers,
export customers and so on. Each customers type could have a different discount structure. Write down on a piece of paper the price levels/bands that are reguired.
Accept through each screen of company Features by pressing the Enter key (do not press escape) and return to Gateway of Tally. Alter price levels names To alter the name of a price level, go through the same procedure as enable and create price levels.
Under : Kenyan customers (Afrlcan customers) Price Levels Currency of Ledger Pricing Level Applicable Maintain balance bill by bill Cost centre are applicable Inventory values are affected : Rs. : ? Yes ? No ? No Not Applicable Consumer Dealer Export
Opening Balance (on 1-Apr-2006) : Tab down to Pricing Level Applicable and select Export Accept the rest of the options and return to Gateway of Tally. You may assign other ledger accounts in this way. It is not Mandatory to carry out the assigning activity before creating Price Lists. It can be done even alter Price Lists are created. The Pricing Level can be changed to reflect changed circumstances. For this, simply alter the ledger account and select a different Pricing Level option.
Gateway of Tally > Inventory Info > Price List If the Price List option does not appear, confirm the activation procedure given in the
Rate of CST
In an inter-state sale to a registered dealer against from C the rate of CST is 4% or local sales tax rate which ever is lower. If under the local sales tax law, sale or purchase is exempt from CST the CST is nil. In an inter-state sale to government against from D the rate of CST is 4% or local sales tax rate whichever is lower.
Rate of CST in case of inter-state sale of declared goods without form C or D is twice the rate of tax applicable to the local sale or purchase of such goods in that state. Rate of CST in case of other goods (i.e. non-declared goods) is 10% or the applicable local sales tax of that state which ever is higher.
A person/firm providing a service that comes under the service tax category has to pay service tax. Service tax is to be shown separately in the invoice and is payable based on the payment realized and not on the total amount shown in the invoice Similarly, when you buy a service that falls under service tax category, you avail service tax credit based on the payment made. So, you pay service tax on the services that you sell and get credit on the service tax payable when you buy a service. Adjust Credit ? While you pay service tax on sale of service that come under the service tax category. You can adjust service tax credit availed on purchase of service (Buyer). This deduction is called adjusting credit against service tax. The different between the service tax that you have to pay for selling service and the service tax credit on purchases that can be adjusted is the payable service tax. Service tax (sales) that is adjustable against service tax credit (purchases) is also called availing input credit. Let us look at an example.
ABC Courier Company buys telephone service from 123 Telephone Company ABC courier sells courier services
Customers Service tax paid on services provided (B) Service tax credit on payment to telephone company (A) Total service tax payable by ABC company courier (B-A) Adjusting 100% credit & 20% credit If you input service (purchase) can be directly related to the output service. (sales) then you can use 100% credit adjustment on the service tax payable for example. If you are providing a consultancy service over the phone then you can use the input credit from the telephone charges to adjust against 100% of the service tax payable on your consultancy service. If the input service is not solely used for the output service, then 20% credit adjustment is applicable. Input service tax credit can be adjusted to both output service tax and output cess (surcharge on tax). But input cess credit can be adjusted only towards output cess. Assessable Value Service tax is calculated on the assessable value. The assessable value is the service charge value minus abatement and expenses. Abatement The government has given a deduction on the value to be considered for service tax on a few categories of services. For example, some categories of services include material value. A caterer has to procure material to prepare food products and sell services. Service tax is charged on the total amount for the service and does not include the rate of the materials procured. Hence a deductions provided. This deduction from the service charges to be considered for service tax is called abatement. Abatement is either percentage of the service charges or a lump sum value. Example: = Rs. 250/= Rs. 145/= Rs. 105/-
a. b. c.
Charge on service If an abatement of 30% is applied, then abatement Here, the assessable value is (a-b) Therefore, service tax@10% on Rs. 7.000/-
Expenses Expenses can be deducted from the total service charge to get the taxable amount. E.g. a technical consultant might travel to different locations with respect to work. The invoice is prepared as consultant and the travel expenses are included in the total service charges. If supported by records, you can deduct the travel expense from the total service charges to drive the assessable value on which service tax is applicable.
Buyer of Service
Sellor of Service
Service tax
Focal /Bank
Company Service Tax Details The Company Service Tax Details screen in where you will enter the Service Tax Details. The name of the company is disp. Layed at the top followed by different fields.
Decision
Code Name Range Code Name : Bang/Kar/0767/05 : Ban/Kar : South/?Bnglr/235 : Bangalore
Name
: Advertising Agency
Applicable to Country : India Code Accounting Category Code : 00440013 : 00440016 : ADV
Service Tax Details Applicable From 1-4-2005 18-4-2006 Abatement (%) 0% 0% Notification No. 10% 12% Service Tax Rate (%) Cass Rate (%) 2% 2%
1. 2.
Enter the Name of ledger Select the group from the List of group
2.
Note: Set Use Common Ledger A/C for Item Allocation to No in the F12: Configure 3. Select the Partys A/C Name from the List of Ledger Account 4. Select the Service ledger from the List of Ledger Account 5. Enter the Amount 6. Select the Service Tax ledger from the List of Accounts for the Service Tax Details sub from to appear.
Service Tax Details Service Ledger Service Amount Less : Advertising Consultancy : 2,00,000.00 : 0%
Black
Abatement :@ Expenses : Assessable Value : Service Tax :@ Cess :@ Total Service Tax :
Service Tax Bill Wise Details for: Output Service Tax - AD Type of Ref New Ref 7. 8. Name Sale/1 Amount Dr/ Cr/ 24,480.00 Cr/
You can allocate the Expenses amount if any in above screen, else leave the field blank and tab down to accept the above screen. Tab down through the voucher entry screen for the Bill Wise Details Sub from to appear.
Brokerage, Commission on Lottery Tickets, etc.) to the sellers (Service) and deduct the requisite amount from such payments towards tax. The buyer files the TDS returns containing details of the seller and bank, where the TDS amount is deposited to the Income Tax Department (ITD). The Income Tax Department has prescribed the format for filling these returns electronically, which the buyer does in a CD/Floppy. For additional details you can visit the Income Tax Website at http://www.incometaxindia.gov.in.
TDS in Tally
TDS (Tax Deducted at source) in Tally provides an easy-to-use and flexible interface. It helps you to handle intricate cases and calculate the tax payable to the Income Tax Department. Tally calculates the tax of all parties / suppliers where TDS deduction is mandatory. It calculates the TDS automatically and prints form 16A certificates, forms 26Q,26,27 and 27A (cover note) for Quarterly / Annual Returns as per statutory requirement. It allows the user to view and print various TDS reports, challans and TDS outstanding statements.
TCS Introduction
TCS is the Tax Collected at Source by the seller (collector) from the buyer/lessee (collectee/payee). The goods are as specified under section 206C of the Income Tax Act,1961. If the purchase value of goods is X the amount payable by the buyer is X+Y, where Y is the value of tax at source. The seller deposits Y (tax collected at source) at any designated branch of banks authorized to receive the payment. The seller, lessor or licensor is responsible for the collection of tax from the buyer, lessee or licensee. The tax is collected for sales of goods, on transaction, receipt of amount from the buyer in cash or issue of cheque, draft or any other mode, whichever is earlier.
Any Local Authority. Any Statutory Corporation or Authority. Any Company. Any Partnership Firm. Any Co-operative Society. Any Individual/HUF whose total Sales or gross receipts exceed the prescribed monetary limits as specified under Section 44AB during the pervious year.
6. 7. 8. 9.
5. 6. 7.
5.
Accept to save.
Note: To Create an item refer to the topic, Stock item 9. Enter the Quantity and the Rate to get the amount in the Amount field 10. Select the TCS Ledger (Under Duties & Taxes) for sales 11. By default, the gross amount is displayed in TCS Details in TCS Computations screen. The Gross amount can be changed if required 12. Enter new reference (New Ref) and Due Date, or Credit Days (By default, 7th of the following month).
Question.
1. Sold to Concord Packing Service on credit of 10 days. The following items. Interest is applicable at 10% P.a. after due date and 12% interest is further chargeable from 10/02/06 onwards. Item Quantity Rate Vat Value (Nos) (Rs) Computer P4 10 28000 4% 280000 // Athlon 10 25000 4% 250000
Note: Set Active Interest Calculation and Use Advanced Parameters to Yes. 2. Received a Cheque from Concorde Packing Service with interest an full settlement of bill dated 20-01-06.
Payroll Configuration
Gateway of Tally > F12: Configure > Payroll Configuration All Statement are Yes
Pay Heads
The Salary components constituting pay structures are called pay Heads. A pay Heads may be an earning, which is paid to an employee, or a deduction, which is recovered
from his/her Salary. The value of these pay Heads could be either fixed or variable, for each Payroll Period.
Affect Net Salary Name to Pear in Pay slip Use for Gratuity Calculation Type Attendance/Level with Pay Calculation Period Per Day Calculation Basic Level without Pay Rounding method
: Yes : Basic Salary : No : on Attendance : Not Applicable : Months : As Per Calendar Period : Absent Rounding info : Not Applicable
Value Basic
Salary Payable
Pay Heads Type: Not Applicable Under: Current liabilities
Creating an Employee
Creating Single Employee Creating Single Employee To Create an Employee under the Employee group, Sales Go to Gateway of Tally > Payroll info > Employee > Create (Single Employee)
Effective from
Pay heads
Rate
Calculation Type
Computed on
Units (Work)
Go to Gateway of Tally > Payroll info > Unit (work)
Attendance Voucher
Attendance Voucher Entry Manual Entry Go to Gateway of Tally > Payroll Voucher > F5: Attendance Attendance Voucher Entry Auto Fill 1. 2. Click F2: Date to enter the date Click A: Auto Fill
Employee Filters Cost category: Primary Cost Category Employee/Group: Sales Auto Fill Voucher Attendance/Production Type:
I.
1.
Pay Heads.
Basic salary
Employee Group
Employees premium cost category Krishna Mathur
Pay Heads
1. Hra Earnings for Employees Indirect Expenses Yes Hra No As Computed Value Month Not Applicable 2. Salary Payable Not Applocable Current liabilities 3. Ta Earnings for Employees Indirect Expenses Yes Hra No As Computed Value Month Not Applicable 4. Salary details Krishna Mathur Rate 15000 Per months -
Primary
101
Computed on
Attendance/Production Types Overtime Primary Production Hra Paid Leave Primary Attendance/Leave with Pay Days
Payroll Voucher Primary cost category (Payroll) Krishna Mathur Basic salary 15000 Hra - 1500 Ta - 1600 Krishna Mathur Lalit Ranjana Mahajan Tanaya Overtime Overtime Paid Leave Overtime 2hr. 5hr. 3days 6hr.
Informatics Pvt. Ltd. Ka Ledger Sundry debtors Yes No No No No No No F11 > F2 Allow Sale order Processing Yes Accounting Voucher Alt+F5 F11 > F2 Tracking Number Yes Accounting Voucher Alt+F8 Rejection Note F11 > F2 Use Rejection Inward/Out ward notes Yes Accounting Voucher Crt+F6 Rejections In Informatic Pvt. Ltd. Delivery Note Ka second entry me output vat 4% Debit Note Reliance info, Sunday debtors, Yes, 10, No, Active interest calculation Yes Interest Parameters Calculate Interest T by T Yes Override Parameters for each T Yes Override advanced Parameters Yes
Sales Order Ledger Concored Packing Service Sundry debtors Yes No No Yes
Rate: 10%, Per 365Days, on debit balance only Applicability: Past Due date, by 10 days, calculation due date of Nor applicable Invoice/Ref Rate: 12%, Applicability: Always calculate from: Date specified during Entry.
The End