Taxable Sales with Additional Ledgers (Kenya)

While carrying on business it is common that discounts are given on goods sold and provide charged services like packing material, transportation, and so on. In this scenario, VAT is calculated on the assessable value which is arrived at by d educting the discount given and a dding the packing charges .

Note : From 01-04-2020 the general VAT rate has been changed from 16% to 14%.

To create an entry for taxable sales with discount and packing charges,

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. Enter the reference number in the Ref . field, if required.

3. Select the Party’s A/c Name from the List of Ledger Accounts .

4. Select the common sales ledger in which the option Is VAT Applicable? is set to Applicable and Set/Alter VAT Details? is set to No without any configuration.

5. Select the Name of Item from the List of Items. Enter the Quantity and Rate . The amount is automatically displayed in the Amount field.

6. Select Discount ledger created under Direct/Indirect Expenses by setting option Include in assessable value calculation for to VAT .

7. Enter the d iscount amount with negative sign .

8. Select the p acking charges ledger created under Indirect Expenses enter the packing charges in Amount field.

9. Select the common VAT ledger.

10. Click A : Tax Analysis button to display the Tax Analysis screen.

11. Click F1 : Detailed button to view the names of stock item with assessable value including expense amount. The Tax Analysis screen appears as shown below:

12. Press Esc to return to sales invoice.

13. Press Enter . The sales invoice appears as shown below:

14. Press Enter to save.