When goods / services are sold, a document detailing the transaction (item name, tax, etc) has to be given to the buyer or debtor as proof of purchase by him. This document is called Sale Invoice or Sale Bill or Cash Memo. Tally.ERP9 has facility to generate invoices according to the business requirements. Here we have discussed in details all types of Sale Invoice with GST Compliance.
1. Sale Voucher with Item Invoice for GST Compliance in TallyERP9
On the Sales invoice screen, click the button Item Invoice, which is displayed on the Button Bar on the right side of the screen and the Sales Item Invoice appears as shown below:
Pass a Sales Invoice against sale of Items to Debtor Chitra & Co. :
Gateway of Tally.ERP 9 > Accounting Vouchers > F8 : Sales displays the Sales Invoice.
Transactions : Sold the following Goods to Chitra & Co. (within state customer) on Credit on 01/04/2020
| Name of Product | Qty. | Rate | Value |
| Desktop HCL Infinity (GST-18%) | 1 Nos. | 30,000 | 30,000 |
| Desktop Lenovo K200 (GST-18%) | 1 Nos. | 45,000 | 45,000 |
2. Sale of Goods and Services in a Single Invoice with multiple GST Rate in TallyERP9
You can record the sales of both goods and services in the same invoice by selecting the required sales ledger and GST ledgers (state tax and central tax for local sales; integrated tax for interstate sales)
Example:
Transactions : Sold the following Goods to Chitra & Co. (within state customer) on Credit on 01/04/2020 with ‘Installation Charges’ Rs.1,000 extra which attracts GST 5% apart from Products GST.
| Name of Product | Qty. | Rate | Value |
| Desktop HCL Infinity (GST-18%) | 1 Nos. | 30,000 | 30,000 |
| Desktop Lenovo K200 (GST-18%) | 1 Nos. | 45,000 | 45,000 |
Setup :
Create a Ledger “Installation Charges” under ‘Direct Income’ with GST Applicable @ 5% as details below :
Under Statutory Information, write YES in Set/Alter GST Details. Immediately you will be move to GST Details for Ledger screen as below :
Select ‘Sales Taxable’ under Nature of Transaction list with GST % i.e. 5% as per screen below:
You can view the tax details by clicking Alt+A : Tax Analysis. Click Alt+F1 : Detailed to view the tax break-up.
3. GST Sale of a Composite Supply (Sale of Items & Goods with Expenses Apportioning)
This is called Recording Sales of Composite Supply under GST (Expenses Apportioning).
Composite supply means a supply is comprising two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply. The items cannot be supplied separately.
Illustration in Revised GST law : Where goods are packed, and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply. Insurance, transport cannot be done separately if there are no goods to supply. Thus, the supply of goods is the principal supply
You can record the sales of a composite supply using a sales invoice. The rate of tax applicable on the principal supply will be considered as the rate of tax for the composite supply.
Example:
Transactions : Sold the following Goods to Chitra & Co. (within state customer) on Credit on 01/04/2020 with Packing Charges of Rs.500, Delivery Charges with Rs.300 and there is a Discount of Rs.400 on total Sales value .
| Name of Product | Qty. | Rate | Value |
| Desktop HCL Infinity (GST-18%) | 1 Nos. | 30,000 | 30,000 |
| Desktop Lenovo K200 (GST-18%) | 1 Nos. | 45,000 | 45,000 |
To create a ‘Discount on Sale’ / ‘Packing Charges’ & ‘Delivery Charges’ Ledger:
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the ledger ‘Discount on Sale’
3. Select Indirect Expenses as the group name in the Under field.
4. Set the option Inventory Values are affected to No.
5. Set the option Is GST Applicable? to Not Applicable.
6. Select GST in the Include in assessable value calculation for: field.
7. Select Goods in the Appropriated to field.
8. Select Based on Value in the Method of Calculation field.
9. Press Enter to accept and save the ledger.
| Note : Like ‘Discount on Sale’ ledger as created above, you can create ‘‘Packing Charges’ & ‘Delivery Charges’ Ledger |
10. Example of GST Sales Invoice having Packaging Charges, Delivery Charges and Discount on Sale as below…
| Note : Remember, put the Discount on Sale Value with minus (-) symbol to deduct the amount form the invoice value.All these Indirect Expenses can be given either in % or in Value |
You can view the tax details by clicking Alt+A: Tax Analysis. Click Alt+F1: Detailed to view the tax break-up.
| Note : Packing Charges, Delivery Charges and Discount on Sale is calculated Proportionately on the basis of Value of Goods. |
4. Sale of ‘Nil-Rated’ , ‘Exempted’ Supplies using Tally.ERP9
For Setting Items and Goods.. ( Click Here)
Transactions:
Sold the following items in Cash which are Nil Rated and Exempted
| Name of items | Quantity | Rate | Value |
| Moong Dal | 50 Kg. | 100 | 5000 |
| Salt | 20 kg. | 30 | 600 |
| Bread | 48 Pcs. | 25 | 1200 |
| Fruits | 10 Kg. | 125 | 1250 |
Sale Invoice of above goods are given below :
To see the Tax Analysis (Alt+A) with Details (Alt+F1) of the above invoice :
5. Sale of Items and Goods with Zero Valued Entries (Free Products) in Tally.ERP9
Zero valued entries in vouchers are required when, for example: you need to despatch inventory as free samples or free replacements, etc.
You can make an entry of issue with the required quantity details but enter the value as zero. This is done so that the entry is reflected only in the Inventory books and not in the Accounting books.
Creating Zero Valued Entries ( Sale of Free Product)
On 2-4-2020, make a Sales invoice on Adersh and Computers for 1 Nos of Laptop Compaq A901TU with Price ₹. 38,000 along with 1 Nos. Keyboard-Logitech and 1 Nos. of Mouse-Logitech FREE (i.e. Zero Value).
Setup:
- Activate the feature Enable Zero valued Transactions in the F11: Features (Inventory Features) and accept the other settings.
Create Sales Invoice with above example as given:
6. Sale of Items and Goods with Separate Actual and Billed Quantity Columns in TallyERP9
The need for different actual and billed quantities may arise in several instances. For example if an extra inventory is sent to cover up for any stock that reaches in a damaged condition or Inventory sent as extra samples or the Stock is despatched to the customer as quantity discount.
Setup:
Ensure that you are in the Gateway of Tally
- Go to F11: Features (Inventory Features) and set Use Different Actual & Billed Qty to Yes.
Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
You will notice that the Quantities column is divided into two columns, viz. Actual and Billed.
Example:
Swayam Sales purchase the following items from Radiant Techno Ltd. with Product Scheme like as given..
| Name of the Item | Actual Qty | Billed Qty | Rate (in ₹. ) |
| Keyboard-iball | 12 Nos. | 10 Nos. | 700 |
| Mouse-Iball | 15 Nos. | 10 Nos. | 500 |
The Sale Invoice will be like this as given below :
Note : The Rate is charges on the basis of Billed Quantity but the stock is updated on the basis of Actual quantity. In other words, Difference in quantity is FREE.
7. Sale of Items and Goods with Inclusive of Tax Rate in Tally.ERP9
When defining the price of the item you can include the tax rate. This inclusive Tax Rate can assign during sale under two ways..
1. Permanently at the time of Creating a Stock Items
2. In Sale Invoice, selecting the option – Allow inclusive of tax for stock items to YES in F12: Configuration.
1. Enable Item Rate (Inclusive of Tax) at the time of Item Creation / Alternation mode :
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create/Alter > F12: Configure .
2. Set Allow inclusive of tax for stock items to Yes .
3. Press Ctrl+A to go to the Stock Item Alteration screen.
4. Set Is inclusive of duties and taxes? to Yes .
5. Enter the Rate of Duty , as required.
6. Press Ctrl+A to save the ledger.
2. Activation of Item Rate Inclusive of Tax in F12: Configuration during Sale Entry
1. Go to Gateway of Tally > Accounting Voucher Entry > F8:Sale .
2. Press F12: Configuration and Set Allow inclusive of tax for stock items to Yes .
3. An extra Inclusive of Tax Rate column will be added with normal Rate column in Sale Voucher screen.
4. Assign Inclusive Tax Rate of the Item in Incl. of Tax Rate Column, Tally.ERP9 will automatically calculate the Items Value after deducting GST as per given Sale Invoice with example.
Example :
Sale 1 Nos. DVD Drive Samsung of Rs. 1500 (Inclusive of GST @ 12%) in cash.
Sale Invoice will be as below :
8. Sale Voucher for Service Provider in Tally.ERP9
In case of Service oriented business, they also product invoice with their Service Charges plus GST. In this case Tally.ERP9 maintain Accounting Invoice where list of Accounts displays instead of Items and Goods.
Under Sales Voucher (F8), Press Alt+I , to convert between Accounting Invoice & Item Invoice.
Accordingly, Invoice body will converted into – Name of Item, Rate, Amount ( in case of Item Invoice). In this case, list of items will display.
Item Invoice:
Similarly, Invoice body will converted into – Particular , Value ( in case of Accounting Invoice). In this case, list of Ledgers / Accounts will display.
Accounting Invoice:
(A) Sale Invoice with Service Charges within State (CGST / SGST)
Example:
Transactions : An invoice issued for Audit Fee of Rs. 20,000 with GST 28% (within State) to Chitra & Co. on 01/04/2020
Setup:
Create a Ledger, ‘Audit Fee’ under Direct Income with GST Applicable and Set/Alter GST Details – YES , with Type of Supply – Service as per screen below:
1. Set/alter GST Details – Yes , specify the details in the GST Details screen below, and save.
Nature of transaction : Select Sales Taxable from the Natures of Transactions List as above.
[Select Sales Exempt , if the type of supply is exempted from tax under GST, or select Sales Nil Rated , if the tax rate applicable to the type of supply is 0% under GST.]
To specify further GST-related details , click F12: Configure .
2. Type of supply – Services .
3. Press Ctrl + A to save.
4. Go to Gateway of TallyERP9 → Accounting Voucher → Sales (F8) → Alt+I (Accounting Invoice -if any)
Issue a Bill/Invoice to Chitra & Co. with a Service of Audit Fee Rs. 20,000 with CGST & SGST as given below:
(B) Sale Invoice with Service Charges Outside State (IGST)
If you are providing any Service to outside State and want to issue an Invoice outside State with IGST, in this situation, you have create a Ledger as usual under Direct / Indirect Income with GST Applicable. But while providing GST Details for Ledger under Set / Alter GST Details, you should select ‘Interstate Sales Taxable’ under Nature of Transaction as given below:
Create a Ledger : Installation & Service Charges (IGST @ 18%)
Example :
Raised a Invoice to Shrinival Pvt. Ltd. a party from Chhattisgarh towards Installation and Service Charges for Rs.20,000 with IGST 18%. The Invoice format as given below :
9. Sales Return / Credit Note (Ctrl+F8) in Tally.Erp9
Credit Note is a document issued to a party stating that you are crediting their Account in your Books of Accounts for the stated reason or vice versa. It is commonly used in case of Sales Returns, Escalation/De-escalation in price etc.
All features and functions of Sales Voucher and Credit Note Voucher are same. So just like Sale Voucher, you can record transaction in Credit Note either in Accounting Invoice or Item Invoice.
A Credit Note can be entered in voucher or Invoice mode (either Accounting / Items).
You need to enable the feature in F11: Accounting or Inventory features.
- To use it in Voucher mode you need to enable the feature in F11: Accounting Features – Use debit and credit notes.
- To make the entry in Invoice mode enable the option F11: Accounting Features – Record credit notes in invoice mode.
To go to Credit Note Entry Screen :
1. Go to Gateway of Tally > Accounting Vouchers.
2. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.
(A) Item Invoice Mode
Pass an entry for goods sold returned from Customer Chitra & Co. just like Sale Voucher :
This Credit Note will pass through Item Invoice ( by pressing ALT+I).
(B) Accounting Invoice Mode
Pass the Credit Note Entry for Price De-escalation for the month of March 2020 of Rs. 10,000 with GST @18% Adjustment to Chitra & Co.
This Credit Note will pass through Accounting Invoice ( by pressing ALT+I).
Note : The Ledger ‘ Price De-escalation’ should be created under Sale Account Group with Inventory Option – No, GST Applicable with all GST Details @18% .