In Tally.ERP 9, from release 1.8 you can record sales commission transactions in Credit Note and Deduct TDS on Commission
Example: ABC Company sells the goods to partners on a condition that, on each sale Rs. 100 will be paid as sales commission. To account sales commission separate expense entry is not booked in Journal but directly a credit note is raised in favour of the partner (to reduce party outstandings) and TDS is deducted on commission.
As on 15-10-2009 ABC Company has to pay Rs. 50,000 commission (sales) to partner Mark IT Solutions.
Set up: Ensure in F11: Features (F1: Accounting Features) following options are set to Yes
Use Debit/Credit Notes
Use Invoice mode for Credit Notes
Go to Gateway of Tally > Accounting Vouchers > Ctrl + F8: Credit Note (Account Invoice Mode)
In Date field Enter 15-10-2009
In Party A/c Name field select Mark IT Solutions
Under Particulars field select Commission Charges Ledger to account commission expenses
In Amount field enter Rs.50,000 (total commission due for the party)
Under Particulars select TDS - Commission Or Brokerage ledger to deduct TDS on the payment of commission. Press enter to view TDS Details screen
In TDS Details screen
In Type of Ref field select New Ref
In Name field accept the default Reference Number –CNote/ 3-1
In Nature of Payment field select Commission Or Brokerage will be defaulted automatically
Assessable Amount and TDS Amount field details are defaulted automatically, based on the information provided in the voucher.
Press Enter to save TDS Details screen.
TDS Deducted on Commission Rs. 5000 will be displayed with Negative sign
In Bill-wise Details screen
In Type of Ref field select New Ref (if Required you can select Agst Ref to adjust against the sales bill)
In Name field enter the Bill Reference Number as CN/001
Skip the Due Date or Credit Days field
Accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Bill amount in the amount field as the credit balance.
Press Enter, select New Ref as Type of Ref and enter Bill name as CN/001
Skip the Due Date or Credit Days field and accept the default amount allocation and Dr/Cr. By default Tally.ERP 9 displays the Tax amount in the amount field as the debit balance.
Enter Narration, if required
Completed Credit Note voucher is displayed as shown
Press Enter to accept and save.
'Accounting Sales Commission and Deducting TDS' has been shared with