Hello Experts,
We are a electric vehicle manufacturing company and provide warranty on the the batteries. When we replace the battery we just make entry in tally under warranty material out. The problem is the value of stock reduces but there is no specific head as such warranty expenses in p&l.
Need the help regarding how to make entry in tally and show the same amount under warranty cost in p&l account. What setting are needed to be done in tally.
Kindly help at earliest.
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Warranty Expenses
Replies (5)
If ,When you reduce stock form Stock transfer due to warranty replacement , amount of Closing stock will reduce in Trading account .
so as per your query , you have pass following entry in order to balance Trading account
Replacement exp (warranty ) A/c Dr
To Purchase A/c Cr
( Being replacement of battery under warranty )
Replacement Expense under Direct Expense . Trading account
Thanks for the reply prasad Nilugal
My question is can we show it differently in p&l account under the head indirect expenses..
My question is can we show it differently in p&l account under the head indirect expenses..
No , this is related to stock and factory Expense ,you can not show as Indirect expense
Thanks..
But in case someone ask what is the total warranty expenses how can we be able to tell the same??
But in case someone ask what is the total warranty expenses how can we be able to tell the same??
You are reducing stock at same time you have created ledger replacement exp , so you have tally both and tell amount reflected in replacement Expense A/c .
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