Sale of Services with Inventory

Posted on August 30, 2010 by Mahendra • 17 Comments

Sometimes, back, I have written an article on how to create an item ledger with vat and excise duty details, so that the sales invoice entry will automatically pick the duty calculation on the item.

In response to the same, some of my readers including Mr. Gautam and Mr. Shahid have raised query on how to create an item with service charges excluding vat on service/repairing income ?

Here is the solution to this problem.

Let’s assume on 28-08-2010 Red Express Company sold 10 Nos. Auto parts @ 1500 per Part to M/s.Zoom Auto co. along with a repairing charges of Rs. 5000.00

To account the above transaction

1. Create Income Ledger : Repairing Charges (Income) under the group Direct Income.

2.Set Inventory Values affected to No

IF you are not under the preview of service tax then set no to service tax filed under statutory details.otherwise set it to yes.

3.Set No for used in vat returns, and used for assessable value calculation

4. Record the Transaction in Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

In Accounting Voucher Creation screen, press Alt+I or click on I : Item Invoice if the voucher is in Account invoice mode
Press F2 and change the date to28-8-2010
In Party’s A/c Name field select the service receiver Zoom Auto Com
In Name of Item field select Computers and specify Quantity as 10 and Rate as 1500
In Accounting Details screen ledger select the Sales Ledger and press Enter

6. after entering item details, press enter it will ask for secondary /additional ledger income detail

7. here select Repairing charges Income ledger as created above

8. Now select out vat amount. it will be calculated only on the item price excluding the repairing charges income.

9. Accept the screen.

Be sure, above solution works only with tally.erp 9 release 1.61 or higher. I would recommend you to renew your TNS and upgrade your tally.erp 9 to release 2 to avail a host of benefits.

If you face any problem, please post your query on support forum

Mahendra (192 Posts)

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

manoharswamych 5 pts

Thanks for my previous question. Sir my second question in expenditure I want to maintain cost center here I created on head as vehicle maintain this diesel and vehicle repair are the subheads. In another cost center diesel is the main head and diesel is the sub head when I am creating sub heads diesel is intimating as double entry

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sathisgopi

hello sir,

how to create excise sales with additional duty before vat% added. how to calculation of vat with additional duty in tally.

pls reply

Lal

how to enter multiple tax items in tally invoice with vat calculation automatically ?

Sumana

how shall i download tally?
please send me a link.

sumana.

Jayprakash pandey

Hiiiii,
I wanted to Know how the petty cash Entries record in tallyErp9.
please send me steps How to rwcord it.
I am waiting for your answer.
please send me proper answer.

Mahendra

Jaiprakash,
First you need to learn how to ask for support in a polite and decent manner. Sometimes people ask questions as if they are CEO or boss !
Further if you are not sure that somebody will not give you a proper answer then Don't ask for support. Get a proper answer yourself.
I don't like this kind of nonsense stuff on this forum

Manohar Swamy

I want to do tractor showroom account. In this main problem is
1.Showroom take old tractor in exchange, on this always there will be loose.
2.On old tractor repair and Insurance and tax due paid by the showroom.
3.Some time showroom will sell the tractor to one person and trally to another person.
How to write all these entries. I want the answer in two models
1.By J.V
2.By creating all the Heads

I request all the viewers please help

Manoharji,
All queries are very much welcome at Support forum
I will be happy to see and solve your query on the support forum

venkata ramana

Sir,
how to prepare the journal entries in construction companies. client bill entries ? ( like work done, chq.received and client deduction tds,servicetax,nac,seignorage,mobilisation advance etc.)

Dear Venketa Rama
I am not into a wholesale business of providing solutions.
Please ask one question at one time and that too only on support forum
Multiple questions in one post always rejected by me.

Hasmat Ali

I want to Know About Groups in Tally 9.0 Pleae tell me about all grous with definetion?I will wait Your Answer.

Sumana,
you can download it from the download section of the site

prabhakar

sir
iam prabhakar from vijayawada
how to prepare the payroll what is pay roll how help to the company any organatione & how to use the vochartypes option and plese difance company invoice & agecency invoice & distbbtuor invoice how to the prepare day by day entary in tally plese my reqasts ur answesr by exmples

Prabhakar,
The only answer to all your queries is read as much as possible on the site www.tallynine.com first try to learn yourselves.If you face any problem then raise your problem on the support forum and i will be more glad then you to assist you. BUT somehow it is not possible to explain everything in example. One should try to learn thyself.

Jai

Sir, we are purchasing Rawmaterials as Yarns and Selling it as a Fabric how can i convert the Rawmaterial in to fabric and how to show in fabric stock

Jai,
Have you read the articles carefully ? I have clearly requested to post your queries on support forum only

Dear Jai,
Perhaps, you have missed this article http://www.tallynine.com/inventory-entries-in-tall...
Please go through the same and after that still if you have any query, then please post it on support forum I will be glad to assist you to solve your problem. Don't worry it is very easy to manage this things in tally.erp 9