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

Change in Agreed Purchase Consideration

Adjustment for Change in Agreed Purchase Consideration will be accounted if there is a decrease/increase in the purchase price agreed upon.

  • Decrease in Purchase Consideration shall be accounted in Debit Note

  • Increase in Purchase Consideration shall be accounted in Credit Note (Voucher Mode)

To create an entry for Change in Agreed Purchase Consideration,

Go to Gateway of Tally > Accounting Vouchers > Crl+F8: Credit Note (Voucher Mode)

  1. Enter the original sales invoice number and date in the Original Invoice No. and Original Invoice Dt. fields. These details will be captured in Relevant Invoice Number and Relevant Invoice Date columns of e-return.

  2. Select Change in Agreed Consideration in the Used for field.

  1. In Credit field select the Party Ledger from the List of Ledger Accounts.

  2. In Credit Amount field enter the changed consideration 4,640 (including VAT).

  3. In Bill-wise Details screen select the bill towards which the consideration is changed.

  1. In Debit field select the Purchase Ledger from the List of Ledger Accounts. The VAT/Tax Class appears as predefined in ledger master in VAT/Tax Class screen.

  2. In Inventory Allocation screen, select the Item purchased on which the price has changed and enter the amount of changed consideration.

  1. In Credit field select the Input VAT ledger to add the VAT charged on the changed agreed consideration.

  2. In VAT/Tax Class screen enter the Assessable Value on which the VAT is to be calculated.

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

  1. Press Y or Enter to accept and save.

Note: The assessable value of entries made in Credit Note by selecting Change in Agreed Consideration in the Used for field is captured in

 

* Box 6: Change in agreed Consideration of purchases recorded using VAT/Tax Class Purchases @ 16% and Purchases - Imports @ 16%

* Box 7: Change in agreed Consideration of purchases recorded using VAT/Tax Class Purchases @ 12%

* Box 8: Change in agreed Consideration of purchases recorded using VAT/Tax Class Purchases - Zero Rated and Imports.

 

of Form VAT 3 under Value Excl. VAT field. The input vat is captured in box 6 & 7under VAT Charged field.

 

The change in purchase consideration can also be accounted through Journal Voucher using the flag Change in Agreed Consideration.

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