Purchase Order for Services

Tally.ERP 9 provides a facility to record sales order and purchase order for the services and to calculate Service Tax amount in the order cycle and track these order in sale or Purchase invoices.

Example: On 2-7-2012 ABC Company placed a purchase order for advertising services with Krypton Agency for Rs.25,000

Record the Transaction in Purchase Order (Without Item)

Set up:

In F11: Features (F2: Inventory Features)

To record the Purchase Order

Go to Gateway of Tally > Inventory Vouchers > F4: Purchase Order

  1. Press F2 and change the date to 02-07-2012

  2. In Party A/c Name field select Krypton Agency from List of Ledger accounts

  3. In Order No. field enter the Purchase Order number - PO-001

  4. In Name of Item field select End of List and press Enter

  5. Select Purchase- Advertising Services and press Enter to view Service Tax Details screen

  6. In Service Tax Details screen

  7. In Type of Ref field select New Ref

  8. Name : This field displays the Reference Number for the Service Taxcalculation. The default Reference Number displayed, is a combination of abbreviation of Purchase Order, Order Number and Line Number. Example: Purc Order /PO-001-1 which can be changed by the user.

  1. Select Service  Tax Ledger e.g. Service Tax @ 12%. Service Tax amount will be calculated and displayed automatically.

  2. Select Education Cess Ledger e.g. Education Cess @ 2%. Education Cess amount will be calculated and displayed automatically.

  3. Select Secondary and Higher Education Cess Ledger e.g. Secondary Education Cess @ 1%. Secondary and Higher Education Cess amount will be calculated and displayed automatically.

The completed Purchase Order is displayed as shown:

  1. Press Enter to Accept and save

Record the Transaction in Purchase Order (With Item)

Example: On 2-7-2012 ABC Company placed a purchase order with Krypton Agency for the purchase of 10 computer  @ 25,000 per computer and agreed for installation and Maintenance to be  to made by the supplier with extra charges of Rs. 10,000

To account the above transaction

1. Create Expenses Ledger

2. Create Input VAT Ledger

3. Create Stock Item

4. Record the Transaction in Purchase Order Voucher

1. Create Expenses Ledger

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

2. Create Input VAT ledger

To create Input VAT Ledger refer the topic - Input VAT Ledger

3. Record the Transaction in Purchase Order Voucher

Go to Gateway of Tally > Inventory Vouchers > F4: Purchase Order

  1. Press F2 and change the date to 02-07-2012

  2. In Party A/c Name field select Krypton Agency from List of Ledger accounts

  3. In Order No. field enter the purchase order number - PO- 002

  4. In Name of Item field select Computers  and in Stock Item Allocations screen specify Quantity as 10 and Rate as 25,000

  5. In Accounting Details screen ledger select the Purchase Ledger and press Enter

  6. Select Installation & Maintenance  and press Enter to view Service Tax Details screen

  7. In Service Tax Details screen

  8. In Type of Ref field select New Ref

  9. Name : This field displays the Reference Number for the Service Taxcalculation. The default Reference Number displayed, is a combination of abbreviation of Purchase Order, Order Number and Line Number. Example: Purc Order /PO-002-1 which can be changed by the user.

  1. Select service  tax ledger e.g. Service Tax @ 12%. Service Tax amount will be calculated and displayed automatically.

  2. Select education cess ledger e.g. Education Cess @ 2%. Education Cess amount will be calculated and displayed automatically.

  3. Select secondary education cess ledger e.g. Secondary Education Cess @ 1%. secondary Education Cess amount will be calculated and displayed automatically.

  4. Select Input VAT Ledger to calculate VAT amount

The completed Purchase Order is displayed as shown

  1. Press Enter to Accept and save


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