To create a Expense Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the Name of the expense ledger you wish to create, for e.g., Packing Charges.
Select Indirect Expenses as the group name in the Under field.
Set Inventory values are affected to No.
Select Not Applicable in Type of Ledger field
Set the option Used in VAT Returns to No
Set Use for Assessable Value Calculation to Yes
In the Apportion for field select Excise & VAT form Duty/Tax Type.
Note: Based on the Duty/Tax Type selected (Excise & VAT/VAT) for the option Use for Assessable Value Calculation, the Value given against this ledger in the sales/Purchase voucher will be considered to calculate the assessable value of the stock item to compute the excise duty and VAT.
In Method of Apportion select Based on Value from Method of Apportion.
Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
In case of Based on Value method of apportion, expenses will be apportioned based on the Value of the Stock item.
Packing charges is 5,000
Value of Item X is 50,000
Value of Item Y is 60,000
Apportionment of Packing Charges to Item X: 5,000*50,000/1,10,000 =2272.73
Apportionment of Packing Charges to Item Y: 5,000*60,000/1,10,000 = 2727.27
Assessable Value of Item X (52,272.73) = Value of Item X (50,000) +Packing Charges (2,272.73)
Assessable Value of Item Y (62,727.27) = Value of Item Y (60,000) +Packing Charges (2,727.27)
In case of Based on Quantity method of apportion, expenses will be apportioned based on the quantity of the Stock item.
Packing charges is 5,000
Quantity of Item X is 200 and Value is 20,000
Quantity of Item Y is 600 and Value is 60,000
Apportionment of Packing Charges to Item X: 5,000*200/800 =1,250
Apportionment of Packing Charges to Item Y: 5,000*600/800 = 3,750
Assessable Value of Item X (21,250) = Value of Item X (20,000) +Packing Charges (1,250)
Assessable Value of Item Y (63,750) = Value of Item Y (60000) +Packing Charges (3,750)
Press Enter to Accept and save.