How to set voucher class for auto duty calculation

Tally.erp 9 allows to set voucher class for auto duty calculation. Auto duty calculation voucher class saves time for posting sales/purchase entries as it captures the applicable ledger name and duty amount automatically. Auto duty calculation voucher class also saves you from posting to wrong accounting head or charging  wrong duty.

Recently, one member  of tally nine face book fan club posted a query that by mistake they have charged CST @4% instead of 2% in sales invoice.

This kind of erroneously mistake create problems in accounts and increase work load such as raising debit/credit note or modification of original bill which again always not possible. The best solutions to avoid such kind of mistake is to make purchase and sales entry through a voucher class.

Setting up a voucher class help in speedy and error free entry for duty calculation for purchase and sales voucher entry.I will explain step by step process how to create a voucher class for purchase .

Go to main menu of tally and then Accounts Info

Now select voucher type

Select Alter

Select purchase to set up voucher class for purchase transaction and Sales for sales transactions.

Here we will learn how  to set up an auto duty calculation voucher class for purchase transactions.

You will see following default screen

Of course, before going through, you should do below set up for your company if you haven’t did that

Set up   excise for manufacturer through F11

Create an item accounts

create duty accounts properly for excise, education cess, S.H.E and vat

create suppliers account, sales  and purchase account

After this basic set up now go ahead and type name of voucher class e.g. here excise 8% ( In case of excise 10% you should type it excise 10%)

You will see below default screen.

bypass exclude these group and include this group just by pressing ENTER

and select purchase ledger as default Accounting Allocation for each item in invoice

here I have selected purchase @4% to enter all purchase transaction which contains 4% vat.

If you want to enter purchase transactions for vat5% or vat !2.5% you should select respective ledger account.

Select voucher tax class applicable . for e.g. here tax class is purchase @4%

Set yes to overriding using item default

Now the main section for auto duty calculation will come.

Select additional accounting entries for tax calculation which is included in the bill

Here we will see a standard example of Basic excise duty, Cess, SHE, Vat 4% and Additional input vat 1%

Select basic excise duty @8% as shown below Type of calculation will be filled up automatically by the tally system. The only condition is that you must created duty ledger correctly.

Select rounding method you think fit or ignore it.set  Remove if zero to yes

Now on the same line, select step by step other duty ledger i.e. Educational Cess, Secondary Cess on Excise duty, vat and input additional vat . Also select rounding method of your choice of ignore it.

After entering all the applicable duty as above, now select a round off ledger and select type of calculation as total amount rounding off. (This is to set up the invoice to round off automatically)

Meanwhile Do browse my article onhow to enter CST purchase voucher for a better understanding

Its all done, we have crated a voucher class for auto duty calculation and i will write about how to enter a purchase transaction using this voucher class