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Related Topics Create Ledgers for Expenses, Incomes, Non-Revenue Accounts, Invoice Rounding |
A business may incur day-to-day expenses such as rent, telephone bills, Internet Bill, stationery, petty-cash expenses, and so on, to carry out the operations. These expenses attract GST.
If you are a registered dealer and purchasing from another registered dealer, and paid GST at the time of payment or purchase, you are eligible to claim the Input Tax Credit. Ensure to enable the expense ledger with GST.
Note : If it is a URD purchase of more than Rs. 5,000, you need to pay GST and then claim ITC. To know more about URD purchases, click here .
You can use either a purchase voucher , or a journal voucher , or a payment voucher to record the business expense.
You can record an expense using a purchase voucher. This will auto-calculate the GST amounts.
To Record an Expense using a purchase voucher
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases > I : Accounting Invoice .
2. Select the party ledger, and then the expense ledger, along with the tax ledgers, and save.
You can record expense using a journal voucher as well. Here, you need to enter the GST amounts as they will not be auto-calculated.
To Record an expense using a Journal Voucher
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .
2. To add the supplier invoice number, press F12 and enable the option Use ref. number in journals .
3. Debit the expenses and tax ledgers, credit the party ledger, and save.
Expenses can also be recorded using payment vouchers. Here, you need to enter the GST amounts as they will not be auto-calculated.
● Booking expenses with party details
● Booking expenses by selecting the Nature of Transaction
To book the expenses in payment voucher by selecting party details
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment .
Note: To add the voucher reference number and date, press F12 and enable the option Use ref. number in payment .
2. Press F12 twice and enable the options Show Party Details for GST? and Allow modification of tax details for GST? .
3. Select the cash/bank ledger and enter the party details with State and Registration Type .
4. Press Enter . Select the expense ledger and the tax ledgers.
To booking expenses in payment voucher by selecting the Nature of Transaction
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment .
Note: To add the voucher reference number and date, press F12 and enable the option Use ref. number in payment .
If the Nature of Transaction is not defined for the expense ledger, but selected in the voucher, the message appears as shown above. You can:
o Click O to accept as per the nature of transaction selected in the voucher.
o Click Y to resolve the mismatch in the report.
2. Click F12: Configure and enable the option Allow modification of tax details for GST? .
3. Select the expense ledger predefined with GST rates. Select the Nature of Transaction based on the expense being booked.
4. Select the GST ledgers.
5. Save the voucher.
All expenses get listed in GSTR-2. To view GSRT-2, go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-2 .
Drill down from B2B Invoices to view the list of vouchers.
