Vat guide in Tally is written by Tally expert Mr. Varun who loves to help tally user community. This is an extensive guide which is very useful for beginners as well as advanced users of Tally.erp 9

[tip]Vat guide in Tally | Examples[/tip]

Sales for specific type debtors with VAT Class

There are instances when you have a specific customer whom you want to give a predetermined discount irrespective of the item he purchases. These are special customers. Vat guide in Tally in pdf format will help you to understand it properly

let’s assume, I am mobile dealer. I have two sets of customers

Retailers and Wholesalers

I have a fixed price for retailers and a discounted price for wholesalers

Vat guide in Tally, will help you how to activate  discounts at the time of entry and this can be done

 

from ( press F11 and then F2)

 

However this consumes extra time and effort, so what is the solution to have a fixed system so that Tally understands who those special customers are, who will be getting the products at a discounted rate.

Mr .Bhogle is a retailer and I will be selling to him at regular price, while MrModi is a wholesaler and I will be making all my sales to him at 5% discount irrespective of the quantity.

 

[tip]Vat guide in Tally | Two Case study[/tip]

Let us examine the two scenarios:

I will put MrBhogle under a group named Retail Debtors( a sub group of Sundry Debtors) and MrModi will be put under a group named ( Whole sale debtor- a sub group of Sundry Debtors)

Scenario 1:

MrBhogle buys mobile XEON

Now Mr Bhogle is a retail debtor and hence he is not liable for any discount.

But Mr Bhogle might buy mobiles that have different VAT rates.

So let us understand the problem once again and see how that can be tackled.

The problem is – Mr Bhogle (a Retail Debtor who is not liable for any discount) buys mobiles of different types of mobiles (both 4% and 13.5% VAT applicable rates)

We have considered two items of XEON mobile one with 4% and the other with 13.5% VAT rates. These rates are given at the time of master creation itself.

 

[tip]Vat guide in Tally | Screen shots of All Ledgers and Vouchers[/tip]

We create a ledger (Mr Bhogle) as

Now go to the sales voucher and alter

Then for VAT Retail create :-

The three VAT ledgers are created for OUTPUT@4%, Output@13.5% and Output@12.5%

. Similarly a ledger is created for the special discount customer named Mr.Modi

Now we again go the sales voucher and alter for VAT Wholesale

Vat guide in Tally will show you the new setting for the Whole sale:-

A new ledger named Discount is created under Total Sales and -10% is given

If a discount of 10% is given.

Now go to accounting vouchers à Sales à and then make sales and select the class Whole sale or Retail

Now only those debtors falling under the Retail or wholesale group would be visible.

 

The screen looks like :-

 

Vat guide in Tally with Items

Items- Lets us create the mobile phones named XEON at 12.5% and Xeon at 13.5%

Go to the Item creation master by going to gateway of Tally and then pressing IàIà Create Items

[tip]Vat guide in Tally | Item master configuration[/tip]

Then press F12 and change this to YES as shown below

Now create an item – named XEON 12.5%

Then set the default ledger for accounting as :-

Once this is done your item is ready, similarly create an item named XEON 13.5% in this manner.

Once this is done, you can go to the sales voucher and make the sales by selecting the vat class as Retailer- where only Mr Bhogle is shown.

We see that automatically the VAT rates are calculated and a sales voucher is also prepared.

Now similarly we create a sales voucher for the Wholesaler Mr.Modi

[tip]Vat guide in Tally | Voucher Entry Screen shot[/tip]

Go to the sales voucher:-

And then select the VAT class as Wholesale:-

Now the items are selected and the rates are calculated automatically.

Not only are the VAT rates calculated correctly. We also see the Discount being given to Mr.Modi @10% as we had set in the Wholesale – Class in the sales voucher.

We believe the above complete examples  on Vat guide in Tally will be very useful to all of you. We love to have your feedback. please do not hesitate to share your views.

 

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