Supply of goods or rendering of services may involve additional expenses, which can either form part of stock items or service value, 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.
To create an expense ledger whose value needs to form part of the assessable value in the invoice
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
GST will be calculated after considering the expense or income value in the invoice, only when the options are set as given below:
● Is GST Applicable - Not Applicable
● Include in assessable value calculation for - GST
2. In the option Appropriate to select,
o Goods, if the expense or income value has to be included in the stock item cost.
o Services, if the expense or income value has to be included in the service value.
o Both, if the expense or income value has to be included in stock item cost or service value.
3. Select the Method of Calculation based on the selection made for the option Appropriate to.
If the option Appropriate to is set to Goods, select the Method of Calculation as:
o Based on Quantity, if the expense or income amount has to be distributed based on the quantity entered for each stock item in the invoice.
o Based on Value, if the expense or income amount has to be distributed based on the value of each stock item or service selected in the invoice.
You can use the expense ledger in a sales invoice for recording your additional expenses along with the sale of your goods or services. For detailed information, refer to Recording Sales of Composite Supply Under GST.
Similarly, you can use this ledger for creating purchase invoices as well.
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