For any company, we have regular expenses to run the company, like stationary, recreation expenses etc. For every mode of purchase, the Government has given HSN Code which gives different tax structures for different items. This HSN code can be added with the help of HSN Code Master as follows.
To create an Expense Account in which we can put our expenses, we have to first go for the Account Category. We have to click on the plus button in the top right corner. On clicking this a popup opens up as follows -
We have to name the Account Category.
Under Group - We have to select any one Direct Expenses / Direct Incomes / Indirect Expenses / Indirect Incomes / Misc. Expenses(ASSET) from the drop-down.
Type - We have to select “Other” from the drop-down.
After filling in the details save it.
After this, we can now go for creating an Account. We have to go for all accounts and click the Plus button in the top right corner.
You can give your account name.
Category - You can select any options like Direct Expenses / Direct Incomes / Indirect Expenses / Indirect Incomes / Misc. Expenses(ASSET) from the drop-down.
City - Select the city.
VIP Level - Select the VIP Level.
Contact 1 - Write the contact number.
HSN/SAC Code - From the drop-down we have to select the code related to that type of item.
Fill in the details and save it.
Now let us go for Expanse Bill
On clicking Expanse Bill, we can see the previous entries.
All the expenses made by the company for the specific head can be entered here separately. We can enter a new entry by clicking on the plus button in the top right corner. On clicking this the following is the page.
Select the Party’s Name, if he is from the same state, the GST will be taken up automatically and if he is from another state then IGST will be applicable.
Select the type of Expanse Bill, from the drop-down. As soon as you select the Expanse Bill, the taxes can be seen on the screen as applicable.
The total amount paid has to be entered here.
You can see the Tax rate has been entered as per the HSN Code entered in the Expanse Bill.
The Total Tax amount is calculated at the backend and gets entered here.
The value of the bill including the tax amount is reflected here.
If you want one more entry, you have to click this plus button.
If you want to delete the entry, click on this symbol.
You can put your narration here.
The total Tax details can be viewed.
Fill in the details and save it.
The details can be viewed in the Account Ledger.
