Last time I have written about how to create a voucher class for auto duty calculation. Voucher class in tally.erp 9 help to prevent error in accounting vouchers and calculate duty automatically. Also it will protect you selecting a wrong accounting head for your entry.Creating a voucher class is not the final or single step. For using voucher class for auto duty calculation, one need to do some basic set up in the accounting data. Today, we will see how to create an item ledger account with excise and vat details. You should also read creating a payment voucher class for better understanding to know how voucher class in tally works out.
Creating an item ledger with excise and vat is very necessary to utilise tally.erp 9’s full feature and to get perfect reporting for Cenvat, ER1 or 3, PLA vat etc.
First of all, you can’t use auto duty calculation for purchase/sales if you haven’t enable accounts with inventory while creating a new company. If your books of accounts are for accounts only then go to alteration of company by selecting F3 from the main menu and alter your company
and enable accounts with inventory as shown in the below screen.
After this select F11 from the main menu of tally and select F2 or inventory features and set yes as highlighted by the pen in the below screen.
and accept the screen
Now from main men press Inventory info and then stock item
Now, create a new stock item by selecting create button
You will find below default screen. type the name of the item. e..g you use to purchase chemicals as raw material then in our example I am creating an item ledger for chemicals
Now select the unit of measurement from the list given say kg, or nos or tons and you haven’t crated any unit then press ALT+C
upon pressing ALT +C you will find below screen to create a new unit for the item
just in the symbol field type kg or other unit as applicable for your actual purchase
Accept the screen
now you will find below screen for tariff classification of item. if you haven’t create any tariff classifications then press ALT+C to create a new tariff classification. you may find your tariff classification from your excise purchase or excise sales bill.
Type name of your tariff classification and set used for both
once you select your tariff classification you will find a sub menu as shown below asksing you to set/alter excise details set it to yes
You will find below screen set kg or other units applicable to your item and press enter
Now it will ask you to set/alter duty ledger, select yes
You will find below default screen. select as valuation type as ad valorem. however if your excise duty is calculated on the base of quantity or MRP then select appropriate valuation type
set the details as shown in the below screen and accept the screen
now select principal inputs for item which belongs to raw material , sales item to finished goods or appropriate item types from the below option
now it will ask you vat details
select commodity as chemicals (for our example )
enter rate of applicable duty say 4% or 5% of 15% whatever applicable.
set addl. tax exempted to no if addl tax is not applicable
accept the screen and its all done.
Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site
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Hi Sir,
Pls let me know the procedure to create the VAT Class for 5% (sales and purchases) in Tally 9.
Thank you
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