Excise Purchase Transactions

ABC Company is a manufacturer of different types of spectacles. They purchase raw materials from Raj Agencies who manufacture frames and other related parts.

On 01 April 2015, ABC Company purchased the following stock items from Raj Agencies:

Stock Item	Quantity	Rate
Oval Frames (Black)	1000 nos.	Rs. 500/no.
Silicone Nose Pads	500 S (sets, where 1 set = 1 pair)	Rs. 100/S

This purchase transaction involves:

Freight charges of Rs. 1000.
Excise Duty of 12.5% on the total assessable value.

Let us now see how this transaction is recorded in Tally.ERP 9.

Purchase of raw materials

When a company is enabled for excise, the transaction is by default considered an excise transaction.

To record a purchase invoice

Go to Gateway of Tally > Accounting Vouchers > F9: Purchases
Enter the Supplier Invoice Number and Date.
Select the required party ledger and purchase ledger.
Select the stock items (principal input).
Enter Quantity and Rate.
Select the Expense ledger and enter the amount.
Select the Excise Duty ledger.
Select the Input VAT ledger.
Click A:Tax Analysis to view the complete tax analysis of this transaction.

Press Esc.

The completed purchase invoice appears as shown below:

Press Enter to save the transaction.

Purchase of raw materials to a different excise unit

On 02 April 2015, ABC Company purchased light filtering lens from Crystal Lens. The stock items were delivered to a godown, which is linked to the excise tax unit ABC Company II.

The stock item details are as below: