You can create vouchers to record purchases from unregistered dealers (URD).
To record journal entry to account for input tax adjustment for purchase from URD
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment.
o Select the option VAT in the Type of Duty/Tax field.
o Select the option Tax on URD Purchase in the Nature of Adjustment field.
o Press Enter to return to voucher.
3. Debit a ledger created under Indirect Expenses and enter the value in the Amount field.
4. Credit a VAT ledger created under Duties and Taxes and by selecting Type of duty/tax as VAT.
o Enter the Rate and Assessable Value in the VAT Details screen.
The completed screen appears as shown below:
5. Press Enter to save.