The supply of goods or rendering of services may involve additional expenses, which can either form part of the cost of stock items or value of services, or can be charged separately. When such an expense is recovered from customers, it becomes an income.
While accounting for expenses and incomes, the ledgers have to be grouped under Direct Expenses , Indirect Expenses , Direct Incomes , or Indirect Incomes .
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Set Taxability as Not Vatable .
3. Select VAT in the Include in assessable value calculation for field.
4. In the option Appropriate to select,
o Goods - to include the expense or income value in the stock item cost.
o Services - to include the expense or income value in the service value.
o Both - to include the expense or income value in the stock item cost or service value.
5. If the option Appropriate to is set to Services , appropriation is done based on the value. If the option is set to Goods , select the Method of Calculation as:
o Based on Quantity - to distribute the expense or income amount based on the quantity entered for each stock item in the invoice.
o Based on Value - to distribute the expense or income amount based on the value of each stock item or service selected in the invoice.
You can use the expense ledger in a sales invo ice for recording your additional expenses alo ng with the sale of your goods or services. Similarly, you can use this ledger for creating purchase invoices as well.
'Expense and Income Ledgers for GCC VAT' has been shared with