Creating Party Ledger

 

To create Party Ledgers for Sundry Debtors:

Go to Gateway of Tally > Accounts Info > Ledgers > Create

  1. In in the Name field, enter the name of the buyer company e.g. Chandra Timbers.

  2. In the Under field, select Sundry Debtors option from the List of Groups.

  3. If required, set Maintain balances bill-by-bill? to Yes.  Enter details in the Default Credit Period, if applicable. By default, the Inventory Values are affected? field is set to No.

  4. Set Is TCS Applicable to Yes?

Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.

 

In the TCS Details screen

  1. In the  Buyer/Lessee field select the Collectee Type from the List of Collectee Types.

  2. Set Is Lower/No Collection Applicable? to No.

  3. Set Ignore Surcharge Exemption Limit to No.

 

Note:

i. Is Lower/ No Collection Applicable is set to Yes, if a buyer is entitled for a lower rate of TCS or is waived off from the payment of TCS. When this field is set to Yes, two additional fields are activated

    • Section Number: This field contains the Section under which the provisions are made for exemption or lower rate (waive off).

    • TCS Lower Rate (%): This field contains the percentage of TCS applicable under the relevant section.

 

ii. Ignore Surcharge Exemption Limit option is applicable when the turnover of the Buyer/Lessee exceeds the threshold limit. However it is not applicable for Buyer / Lessee Types such as Co-Operative Society and Local Authority.

 

When this option is set to Yes, surcharge will be calculated without considering the surcharge exemption limit of the collectee types. And if this option is set to No, surcharge will be calculated only when the Buyer/ Lessee turnover exceeds the prescribed Surcharge Exemption Limit.

 

In Tally.ERP, this option is user-definable, in cases where this option is not set to Yes and later if the Buyer/Lessee exceeds the Surcharge limits and is subject to Surcharge calculation, the Surcharge amount will be calculated retrospectively on the entire turnover at the prescribed rates.

  1. Enter party Mailing Details and Tax Information

 

  1. Press Enter to accept and save.