How to record Purchases with Input VAT in Tally ERP 9

Purchase transaction which includes VAT amount can be recorded in Tally ERP 9. Before that purchase ledger must have configure with appropriate VAT/Tax Class. And as well Input VAT ledger needs to be created for the computation of VAT for Sales Tax calculation.

Purchases recorded with Input VAT in Tally ERP 9

So, here we have created Purchases @ 5% VAT and configured the 5% VAT for the purchase ledger to record the purchases that comes under 5% VAT/Tax Class. In the same sense if you need to record other VAT Class create your own set of purchase ledgers by configuring the appropriate VAT/ Tax Class.

In the Purchases @ 5% VAT ledger we just record the Assessable Value of the Purchase Invoice and not the whole amount of the Invoice and the rest of the amount i.e. VAT amount needs to be recorded in another Ledger which is called Input VAT in case of Purchases. So, here I have created Input VAT @ 5% ledger under Duties & Taxes group and configured the VAT for Input VAT ledger.

To record the VAT Purchase just open Accounting Vouchers in Gateway of Tally and

1. Choose Purchase Voucher Type by pressing the F9 Key to record the Purchases.
2. If the Accounting Voucher Creation screen in As Voucher mode hold the Ctrl Key and press V Key (Ctrl + V) or click on V: As Invoice button in Button Area.
3. Choose a Ledger from the List of Accounts in Party’s A/c Name field.
4. Record all the Stock Items of the purchase invoice and choose appropriate Purchase Ledger for the Stock Items. Tally will automatically selects the appropriate VAT/Tax Class, which you configured at the time of Purchase Ledger creation.
5. After selecting the Stock Items list select the Input VAT ledger then it will automatically calculates the VAT against the purchase of the Stock Items selected.

Save the screen to complete the VAT Purchase. This is how to record the VAT Purchases in Tally.ERP 9 Accounting Software.