There is a segment of Car Distributors that purchase cars and then sell directly or resell to the outlets.
Most of these car distributors have outlets and they are maintaining data branch wise. There is a need for maintaining even at branches,
Let us say the purchase of 10 cars is done by the branch 1, 5 by Branch 2 and 3 by Branch 3 and 20 By HO.
the entry for this is shown as :-
( The purchasing price of each automobile has been taken as 3,00,000) and the entry is made as :-
In case you are wondering why this purchase has been done in voucher mode, please recall this has been done because we have to use cost centres and cost centres can be used for purchase entries only in voucher mode.
Let us see the break of ledgers for a better understanding:-
the ledgers are created as shown above,
Note that in the purchase voucher – we had cars purchased of worth – Rs. 1,18,56,000 , however the purhcases were broken up between various branches as shown :-
now this breakup shows us what is the value of each car with each branch – also gives us an additional information of the total VAT input credit we have with us. However this infor can also be obtained from Display-Statutory-Vat-Computation – ( Total Input credit).
Now in the credit side you may have noticed that this dashboard shows – Branch 1 has ( 3,00,000 X 10) =Rs. 30,00,000 worth of goods. Similarly for other branches.
It may also happen that the payment is made by the HO, but we need to keep track of that and it should be available in one short as is shown above – that amount of 1,00,00,000 was paid by the HO and the remaining by Branch 1-Rs. 18,56,000.
If you notice – in the Primary cost category we see the value of 1,18,56,000 on both Dr and Cr. which means that goods purchased and payment made to creditors have been settled off.
Now let us say we have one more supplier and we make purchases from him on the 2nd of April.
Here the purchase is being done by the HO only and the applicable VAT is 4%.- Let us see the change in the dash board – at cost category – Display – Statement of Accounts – cost centres-Cost Category Summary ( DSC). the purchase amount is Rs. 45,00,000 so the HO’s value should be added by Rs. 45,00,000 ( therefore earlier value of Rs. 60,00,000 + 45,00,000 )= Rs. 1,05,00,000
In case you are thinking about the dr. Value of the HO- that’s because of the payment made by HO on 2nd april
Now 1 Crore + 50,62,500 as paid is Rs. 1,50,62,500 as is reflected in the category dash board.
Now let us say – we need to sell cars to a bulk buyer as shown below:-
And at the same time we want to maintain a dashboard such that we can see clearly which branch has sold how much. Now there is an additional condition that which ever branch sells the cars – the money receipt will be done only at the HO.
Now in this sales – we have taken one more concept of selling multiple VAT items – this is done as :-
Now the sales is tagged as per the Branches from where the sales are actually being done – as :-
now we have to remember one important thing that – We need to create the cost centres as HO-Sales ( we cannot create another HO)- Tally does not allow that ( prevents duplication of cost centres), so we have created it as HO-Sales. and Output-VAT which is not a duplicate.
Let us make another sales from Branch 1 this time as :-
Now let us say – we are receiving a payment against this, but a partial payment is being made of only Rs. 1,00,00,000.
The receipt is done for say only 1 Crore, and the reflection is
Let us see the dashboard now,:-
This dashboard shows that – sales by branch 1 is 22.5 laks, and for HO sales it’s 1Crore and 3.95 laks, while 1 Crore has been received and the pending amount is 3.95 laks as shown on the extreme right of the columns.
While this also shows that no payment has been received for the Branch 1 sales of 22.5 Laks
Now let us make the VAT payments –
go to vouchers – F5_ payment and then click ALT-S for stat payment. press autofill and this stat payment is automatically filled as shown :-
The only thing you have to keep in mind is the date. please note that the date has to be after the date for which the payment is being made.
This is how you may maintain the accounts for a distributor.
PS Note*- Let us know your feedback for the article.
This article is only for an educational purpose and the author holds no form of responsibility whatsoever.
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