Any consideration (something in return) received towards services provided or paid towards services received in a form other than money is called Money Equivalent.
Tally.ERP9 allows the user to record money equivalent of consideration transactions. It also allows the user to record money equivalent transactions for Advance receipt. Against this, the user can record a sales transaction as well.
Example:
On 23-4-2010 ABC Company Sold Event Management Services to Krypton Agency for Rs. 50,000(inclusive of tax) Bill No. ABC/792
On 24-4-2010 ABC Company purchased Advertising services from Krypton Agencies for Rs.
60,000 (inclusive of tax) Bill No. KA/642/10-11
On 24- 4-2010 ABC company instead of making payment to krypton Agency towards Advertising services of Rs. 50,000 purchased (Tax Bill -Purc/7-1 dated 24-4-2010,Bill No- KA/642/10-11) they are adjusting this bill towards the services sold (Tax Bill -Sale/9-1 dated 23-4-2010, Bill No- ABC/792) on which the payment is pending from Krypton agency.
Before making the above money equivalent transaction, ensure the Purchase and Sale entry is recorded.
To account Money Equivalent Transactions through Journal, create the Voucher Class in Journal Voucher. To create voucher class refer - Create the Voucher Class in Journal Voucher
To record the Journal voucher
Go to Gateway of Tally > Accounting Vouchers > F7: Journal
In Change Voucher Type screen, in Class filed select Service Tax Adjustments
Press F2 and change the date to 24-04-2010
In Used for field select the flag - Money Equivalent of Consideration
In Debit field select Krypton Agency ledger and press enter to view Service Tax Details screen
In Service Tax Details screen
In Type of Ref field select Agst Ref
Note: To record an advance receipt for Money Equivalent Consideration, select Advance in the Type of Ref. field. Using this method of adjustment, a sales transaction can be recorded against the Advance receipt.
In Name field select Purc/7-1 dated 24-4-2010 from the Pending Tax Bills
Based on the Tax bill selected Type of Service, Category, Amount (incl. of Tax) and Service Tax details will be defaulted
In Amount (incl. of Tax) field enter Rs. 50,000
In Debit amount field Rs 50,000 will be displayed automatically.
In Bill-wise Details screen
In Type of Ref field select Agst Ref
In Name field select KA/642/10-11 dated 24-4-2010 from the Pending Bills
Amount will be defaulted automatically.
In Credit field select Krypton Agency and press enter to view Service Tax Details screen
In Service Tax Details screen
In Type of Ref field select Agst Ref
In Name field select tax bill Sale/9-1 from Pending Tax Bills
On selecting the Tax bill Type of Service, Category, Amount (Incl. of tax) and Service Amount details will be defaulted.
In Credit amount field Rs 50,000 will be displayed automatically.
In Bill-wise Details screen
In Type of Ref select Agst Ref
In Name field select ABC/792 dated 23-4-2010 from the pending Bills list to adjust towards receipts
Amount will be defaulted automatically to Rs. 50,000.
The completed Journal voucher is displayed as shown
Press enter to accept and save.
Note: Details of Money Equivalent transactions will be captured in 3F (I) (b) section of Form ST3
Tally.ERP 9 also allows the user to record Money Equivalent transactions for an Advance Receipt