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Sales Accounting

Ganesh Kumar Kashyap (Accountant) (1 Points)

16 September 2024

Dear Sir, I work as an accountant in an automobile service company. There are many types of spare parts and accessories. But I do not want to do inventory accounting in tally prime. So how can we do accounting in tally without inventory management and how to show sales with hsn in sales accounting. Is there any way to do sales accounting of spare parts and accessories at 5%, 12%, 18% and 28% with just one hsn code?

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R N Tiwari (CA) (24 Points)
Replied 16 September 2024

In Tally Prime, you can perform accounting without activating the inventory management feature and still manage sales with HSN codes and different GST rates. Here’s how you can proceed:

1. Disable Inventory Features

To bypass inventory management and focus only on accounting:

Go to Gateway of Tally > F11: Features > Inventory Features.

Set "Maintain Accounts only" to Yes. This disables the inventory module.

2. Create Ledgers for Spare Parts and Accessories

Since you won’t be using inventory, create sales ledgers with different GST rates. You can manage sales of spare parts and accessories under one HSN code but apply different tax rates.

Steps to create the sales ledgers:

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

For each GST rate (5%, 12%, 18%, and 28%), create separate sales ledgers:

Ledger Name: Sales @ 5% GST (HSN Code: XXXXX)

Under: Sales Accounts

GST Applicable: Yes

Set/Alter GST Details: Yes

HSN Code: XXXXX (same for all)

Taxability: Taxable

GST Rate: 5% (for this particular ledger)

Repeat the process for Sales @ 12% GST, Sales @ 18% GST, and Sales @ 28% GST, adjusting the GST rate accordingly but keeping the same HSN code for each.

3. Create GST Ledgers

Ensure that GST ledgers for CGST, SGST, and IGST are already created if you haven't done so:

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

Create the following ledgers:

CGST: Under Duties & Taxes > GST > Central Tax, with the respective rate (e.g., 2.5%, 6%, 9%, or 14%).

SGST: Under Duties & Taxes > GST > State Tax, with the same rates as CGST.

IGST: Under Duties & Taxes > GST > Integrated Tax, with rates like 5%, 12%, 18%, or 28%, depending on interstate sales.

4. Recording Sales Entry

When making a sales entry for spare parts and accessories:

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

Select the appropriate Sales Ledger based on the GST rate (5%, 12%, 18%, or 28%).

Enter the HSN Code manually under the "HSN/SAC" field for each item.

Input the amount and GST breakup (CGST/SGST or IGST).

Example for a Sale at 18% GST:

Sales Ledger: Sales @ 18% GST (HSN: XXXXX)

CGST Ledger: Automatically 9% of the taxable value.

SGST Ledger: Automatically 9% of the taxable value (for intrastate sales).

5. Customize HSN Reporting

For GST returns, Tally will aggregate the sales under the same HSN code, and the GST will be calculated based on the rates applied through the different ledgers.

This setup allows you to manage accounting for spare parts and accessories sales using just one HSN code and different tax rates without having to deal with inventory management in Tally Prime.