Payment entry to be made as purchase to generate return

A/c entries 153 views 6 replies

Tally has a peculiar requirement for passing entry. Even if you are making payment in cash for an item which is office equipment (fixed asset), if you want proper returns to be generated under GST (eg 3B, GSTR-2) then the entry should be passed as a purchase entry.

Whereas we had to re-write the entire years book in the past as this was not acceptable to our auditor. He says that only items purchased which are part of making the finished product will go into purchase entry (eg Raw material, packaging). Other entries for which we are making payment in cash eg Stationary, office equipment (computer peripheral & mobile) need to be passed as payment entry (GST debited to respective account).

I would be grateful if you could please advise.

Replies (6)
yes your auditor was right. In your case my opinion is that you could pass entry under Journal Voucher. And for GSTR if you passed entry in that then also it shows under GSTR 3B or GSTR 2 only if you prepare proper ledger.
@ Mr. R Saraf.,

Are you using Tally Original version with updated...?

Yes Sir, 6.3.1 latest

I saved the entry as Journal, still it does not allow to edit the details.

Actually upto some earlier version of tally (probably 6.2) it was ok, when making the payment entry I had input Supplier details, GST no, CGST, SGST etc.

After update to 6.3 it is not show that when in edit mode. Further, in GSTR return it is not showing properly.

Seperate ledgers to be opened for each item?

There is one more major issue with regard to passing entries in tally. If we open a ledger account eg Office equipment to which we debit various items purchased during the year, there is a major issue if the item purchased has a different rate from the one purchased earlier. For this tally reccommends that a seperate account be opened for every item with a different rate of GST.

Instead of requiring to open new ledgers, if tally had simply allowed for capture of rate, SAC/HSN during entry & reflected this in the return (GSTR-2), it would have sufficed.

Please share your view on how we should pass such entries.

As per my view.,
You can create new Ledger and different tax rates. Then only you can work it correct way...
Ex: Printing and Stationary... create

Printing and Stationary @ 5%
Printing and Stationary @ 12%
Printing and Stationary @ 18%
Printing and Stationary @ 28%

based on your requirements....


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