Tally.ERP 9 for cash basis accouting

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Tally.ERP 9 for cash basis accouting

  1. 1. Tally.ERP 9 for Cash Basis Accounting© Tally Solutions Pvt. Ltd. All Rights Reserved
  2. 2. Agenda • Overview of Cash Basis Accounting • Structure of Cash Basis Accounting Module • Tally.ERP 9 for Cash Basis Accounting • Business Process Flow • Primary Requirement • Tally.ERP 9 – Fitment© Tally Solutions Pvt. Ltd. All Rights Reserved 2
  3. 3. Overview of Cash Basis Accounting Cash basis of accounting, recognizes revenues and expenses when money is actually received or paid out. For example, the professional service fees for auditors are recognized as revenue on receipt of money and not when the client agrees to pay or when the services are provided.© Tally Solutions Pvt. Ltd. All Rights Reserved 3
  4. 4. Structure of Cash Basis Accounting Cash Basis Accounting Voucher Financial Creation Reports Service Tax Calculation© Tally Solutions Pvt. Ltd. All Rights Reserved 4
  5. 5. Process Flow – Cash Basis Accounting (An example : CA Business)© Tally Solutions Pvt. Ltd. All Rights Reserved 5
  6. 6. Primary Requirement – Cash Basis Accounting Category / Module Major Requirement Explanation Cash basis Invoice Creation Typically, invoice is created at the time of providing service or Accounting when the liability is created for the client, but as per cash basis accounting the books of accounts shouldn’t get affected. The cash receipt is acknowledged against the sales invoice. The books of accounts would reflect the changes. Outstanding Reports Outstanding reports should show the party names and the amount as receivable, for user to follow up. This helps user to track the receivables better. Assessment Year For each invoice the assessment year could be mentioned along with the date of invoice. This will help in filing returns in a different year than accounting year. Service Tax Calculation Service tax should get calculated on payment of cash. The service tax reports like computation, payable, ST3 and others should get updated only on receipt of cash and not on creation of invoice. Financial Reports Financial reports in cash basis accounting should recognize revenue only on receiving cash from the clients while accrued receivables are not reflected in the reports.© Tally Solutions Pvt. Ltd. All Rights Reserved 6
  7. 7. Tally.ERP 9 Fitment – Cash Basis Accounting SL No. Requirement Part of Tally.ERP 9 Part of Solution 1 Assessment year in invoice Yes 2 Auto creation of masters Yes 3 Logo printing in invoice Yes 4 Terms and conditions in invoice Yes 5 Voucher numbering Yes 6 Maintain bill-wise details Yes 7 Multiple mailing details for company & ledgers Yes 8 Voucher type creation Yes 9 Define terms and conditions for invoice Yes 10 Creation, alteration, deletion of assessment year Yes 11 Professional fee head creation Yes 12 Configuration of service tax Yes© Tally Solutions Pvt. Ltd. All Rights Reserved Contd.. 7
  8. 8. Tally.ERP 9 Fitment – Cash Basis Accounting SL No. Requirement Part of Tally.ERP 9 Part of Solution 13 Professional fee details during invoice level Yes 14 Additional details for professional fees during invoice Yes creation 15 Visibility of receivables on invoice creation Yes 16 Financial statement behavior on creation of sales invoice Yes 17 Financial statement visibility on receipt Yes 18 Service tax visibility on invoice creation Yes 19 Service tax visibility on receipt of cash Yes 20 Printing of detailed service invoice with tax details Yes 21 Service tax reports ( input credit, ST3, payable etc.) Yes© Tally Solutions Pvt. Ltd. All Rights Reserved 8
  9. 9. Thank You For any queries, write to us : support@tallysolutions.com To find out more, visit : http://www.tallysolutions.com/website/html/solutions/segment-vertical-solutions.php© Tally Solutions Pvt. Ltd. All Rights Reserved
  10. 10. Thank You For any queries, write to us : support@tallysolutions.com To find out more, visit : http://www.tallysolutions.com/website/html/solutions/segment-vertical-solutions.php© Tally Solutions Pvt. Ltd. All Rights Reserved

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