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https://help.tallysolutions.com/docs/te9rel51/Tax_International/Kenya_VAT/Tax_Sale_Incl_VAT_Override_Item.htm

Sales - Inclusive of VAT with Override using Item Default

Tally.ERP 9 provides a facility to specify default Ledgers for a stock item for easy account allocations in Purchase or Sales invoices. The default ledger account set for a stock item is known as Item Default.

Item Default will be useful while recording  sales/purchase invoice for multiple items with different VAT/Tax Rates, as Items will be automatically allocated to the Ledgers defined in Item Master. This facilitates the user to pass the entries faster and with ease.

Here, we will be explaining about

  • Setting default ledgers for Stock Items

  • Create Inclusive of VAT Voucher Class by enabling Override using Item Default

  • Recording sales using Voucher Class.

Example: National Traders has set default Ledgers for Stock Items - Desktop Computers (HP) and Diesel.

To create voucher class

Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter > Sales

In Voucher Type Alteration screen,

  • Tab down to Name of Class field

  • Enter the Name of Class as VAT - Override using Item Default

  • Press Enter to view Voucher Type Class screen.

  • In Voucher Type Class screen,

  • In Exclude these Groups and Include these Groups field select End of List.

  • In Default Accounting Allocations for each Item in Invoice section, select the Sales Ledger and in the Percentage field define the sales amount percentage as 100%.

  • Set the option Override using Item Default to Yes.

Note: If you set Override using Item default to Yes and specify a Sales Ledger in the Voucher Class table, the sales Ledgers set in the Default Accounting Allocations for Stock Items will be considered for account allocation.

  • In Default Accounting Allocations for Stock Items section,

  • Select the stock item, Desktop Computers (HP). Select the Sales Ledger with VAT/Tax class - Sales @ 16%. Enter the Percentage as 86.21%. Select the Output VAT ledger with VAT/Tax Class - Output VAT @ 16%. The Percentage appears as 13.79%.

  • Select the stock item, Diesel. Select the Sales Ledger with VAT/Tax class - Sales @ 12%. Enter the Percentage as 89.29%. Select the Output VAT ledger with VAT/Tax Class - Output VAT @ 12%. The Percentage appears as 10.71%.

  • Accept the Voucher Type Class screen and Voucher Type Alteration screen.

Step 3: Record Sales Voucher using Voucher Class

While recording Sales Voucher using Inclusive Voucher Class ensure the option Use Common Ledger A/c for Item Allocation is set to No in F12: Configuration (Sales invoice Configuration).

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

  1. In Change Voucher Type screen, select VAT - Override Using Item Default in Class field.

  1. Enter the Reference Number and Date.

  2. Select the Party’s A/c Name from the List of Ledger Accounts.

  3. Select the Name of Item as Desktop Computers (HP). Enter the Quantity and VAT inclusive Rate. The amount is automatically displayed in the Amount field.

  4. Select the Name of Item as Diesel. Enter the Quantity and VAT inclusive Rate. The amount is automatically displayed in the Amount field.

  5. Select the Type of Device, the Device number will be captured automatically. Maximum of 20 characters is allowed for Device No. field.

  6. In Brief Desc for VAT field, enter the brief description of the goods being sold.

  7. Enter the details in the field Narration, if required.

  1. Press Y or Enter to accept and save.

Press Page Up key to select the entry in alteration mode. Move the cursor to the Amount field and check.

The Accounting Details screen of 16% Taxable item displays the amount allocated to the default sales and VAT ledgers selected in item master. Amount is allocated based on the percentage defined for the item in the Voucher Type Class screen.

The Accounting Details screen of 12% Taxable item displays the amount allocated to the default sales and VAT ledgers selected in item master. Amount is allocated based on the percentage defined for the item in the Voucher Type Class screen.

Note: As the option Override using Item default is set to Yes in Voucher Class, Tally.ERP 9 has considered the Sales, VAT ledgers and Percentage defined in the Item masters.

The Sales invoice Print Preview appears as shown:

Observe, Sales Invoice displays the Total Value of the Invoice i.e. Sales Value + VAT Amount.

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