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https://help.tallysolutions.com/docs/te9rel49/Dealer_Excise/Pur_From_Agent_of_Manufacturer.htm

Accounting Purchases From Agent of Manufacturer

 

From Agent of Manufacturer is a supplier who acts as a commission agent of the manufacturer. On sales made this suppliers issues only a commercial invoice and Rule 11 invoice is issued by the manufacturer

Tally.ERP 9 allows to record the excise purchases made from a commission agent of manufacturer and pass on the CENVAT Credit on Sale of Goods.

Example: On 15-4-2009 ABC Company purchased 10,000 Hot Rolled Coils  @ 350 per Kg from Indus Trader who is a commission agent of Sterling Steel Industries (Manufacturer's Assessable value to pay the Excise duty is Rs. 28,00,000)

Step 1: Create a From Agent of Manufacturer Ledger

Go to Gateway of Tally > Accounts Info. > Ledger

  1. Enter the Name of the Supplier in the Name field e.g Indus Traders.

  2. Select Sundry Creditors as the group name in the Under field.

  3. Set Maintain Balances Bill by Bill to Yes and enter the Default Credit Period if any.

  4. Set Inventory Values are affected to No

  5. In the Mailing Details and Tax Information section enter the supplier contact details, Income Tax and the Sales Tax numbers.

  6. Enable Set/Alter Excise Details to Yes to display the Excise Details screen.

  7. In Excise Details screen enter the details as shown below

  1. Press Enter to accept and save

Note: Commission Agent may be registered excise dealer or not. In this case Indus Traders is not a Excise Registered Dealer so the excise registration details are not provided.

Step 2: Record the Transaction in Excise Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

  1. Select the Excise - Purchase as the Voucher Type from the list of types.

  2. Select Alt + I: Item Invoice if it is in Acct Invoice mode

  3. Press F2 and enter the date as 15-4-2009

  4. Enter the Supplier Invoice No.  as IT/7584 and Date as  15-4-2009

  5. By Default Tally.ERP 9 displays the Excise Unit as ABC Company as defined during voucher type creation.

  6. Select the Party’s A/c Name from the list of Ledger Accounts e.g. Indus Traders

  7. The Supplier’s Details sub-form will appear. Supplier’s Details will include the supplier contact details, Sales Tax number and the Excise registration details. The details will appear automatically if they are provided during the Supplier Ledger Creation. If the supplier of the goods is not the manufacturer, specify the details of the manufacturer of the goods in the Manufacturer / Importer details section.

For this purchase Indus traders are not the manufacturer. Manufacturer is Sterling Steel industries. Specify the details of the manufacturer

  1. By default the Nature of Purchase will be displayed as From Agent of Manufacturer as defined in the party ledger. This field defines the Supplier’s role in selling the product.

  1. In Purchase Ledger field select Purchases @ 4% from the list of Ledger Accounts. VAT/Tax Class will be defaulted to Purchases @ 4%

  2. In Name of Item field select Hot Rolled Coils form List of Excise Stock Items

  3. In Quantity field enter 10,000 and Rate as 350. Amount will be calculated and displayed. and press Enter to view Excise Details screen

  4. In Excise Details screen

  5. RG 23D Entry No. represents the display of this particular transaction in the relevant page of RG 23 D Register.  Enter the RG 23 D entry number manually in the very first excise purchase voucher. The RG 23 D Entry no in the subsequent excise purchase vouchers are automatically incremental by 1 every time an item is selected in excise purchase invoice.

Note:

1. If an excise Purchase invoice is deleted/ cancelled/ marked as Optional, the RG 23 D Entry no used in it, will not be used in subsequent.

2. If an existing excise purchase transaction is duplicated, the RG 23 D Entry no will remain the same in both, the original and duplicate invoice and will not be incremental.

3. If an excise purchase invoice is inserted between two other excise purchase invoices, then the RG 23 D Entry no allotted for the stock items in the inserted invoice will be the latest in the sequence

  1. Supplier Invoice Number will be captured form the Supplier Invoice No. field if entered. Other wise enter the supplier Invoice number

  2. By default the voucher date is displayed as the Supplier Invoice Date

  3. In PLA/ RG 23D Entry no. field enter the PLA number where the reference of duty paid on the goods sold are entered.

  4. Enter the Assessable Value (it is the amount on which the Excise Duty is calculated by the manufacturer) on which the Excise Duty is calculated. Enter Rs. 28,00,000

  5. Duty Amount will be calculated and displayed automatically.

  1. Select Input VAT ledger - Input VAT @ 4% to account the VAT amount

The completed purchase voucher is displayed as shown

  1. Press enter to accept

Step 3:Sale of Goods purchased from - Form Agent of Manufacturer

On selling the goods purchased form From Agent of Manufacturer in Rule 11 invoice the print title will be First Stage Dealer

Record the Sales in Excise - Sales as shown

  1. In Excise - Sales Invoice select  the party as Decora Equipments

  2. Select the sales ledger

  3. In Name of Item field select Hot Rolled Coils and in Supplier Details screen select the purchase bill of purchases made From Agent of manufacturer and Quantity field enter the quantity sold. Here 5000 Kg is sold.

  1. select the out put VAT ledger - Output VAT @ 4% to account VAT on the sale

Completed Sales Voucher appears as shown

On Accepting the voucher the Rule 11 invoice generated appears as shown

 

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