Taxable Sales (Kenya)

In order to record a taxable sales invoice, you have to first enable VAT applicability during ledger creation.

To record taxable sales invoice

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

2.     Enter the reference number in the Ref field.

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

4.     Select the common sales ledger in which the option Is VAT Applicable? is set to Applicable, and Set/Alter VAT Details? is set to No without any configuration.

5.     Select the required stock item(s) whose VAT rates are specified either at the stock group or stock item level. Enter Quantity and Rate for each stock item.

6.     Select the common VAT ledger.

7.     Click A: Tax Analysis button to display the Tax Analysis screen.

o      Click F1: Detailed button to view the name of stock item. The Tax Analysis screen in detailed mode appears as shown below:

o      Press Esc to return to sales invoice.

8.     Press Enter.

The sales invoice appears as shown below:

9.     Press Enter to save.

Printing Sales Invoice

To print sales invoice

1.     Press Page Up after saving the sales invoice to open the invoice in alteration mode.

2.     Click P: Print to display the Voucher Printing screen.

3.     Press Enter to print.

The print preview of sales invoice appears as shown:

Note: Click I: With Preview in the Voucher Printing screen to view the preview before printing.

Sales with multiple tax rates

While using a common VAT ledger in sales invoice, the tax amount for each item is calculated based on the rate of the respective item as shown below:

The sales invoice with multiple items attracting different tax rates and commom VAT ledger appears as shown below: