If you need the Journal transactions for VAT Computation (for example, adjustment of Input credit, output tax, etc) you will need to make the following settings:
Go to Gateway of Tally > Accounts Info > Voucher type > Create/Alter
The following screen is displayed
Name of Class
You have to name the voucher class.
In the above example, we have named it as VAT Adjustment Class. Once you press Enter, the following screen is displayed.
Use Class for VAT Adjustments
Enable the option Use Class for VAT Adjustments to Yes, if you want the journal entries to be included in VAT Computation.
Journal Entries
Let us consider a Purchase transaction and then a reverse entry for adjustment of Input credit.
The following screen displays a typical Purchase Transaction.
Typical Purchase transaction
Reversal of Input Credit
| 1. | Go to Journal voucher screen by selecting the button F7: Journal from the button bar, which is on the right side of the screen or by pressing the F7 key. |
| 2. | You will see the following screen where you need to select the Voucher class created before. |
| 3. | Once you select this you can pass the typical reversal entry as displayed below. |
Once you have selected this, you can pass the typical reversal entry as shown below:
VAT Computation Report
The VAT Computation report will be displayed as shown below.
Note: Rs.50 of the Input credit is reversed and only the balance of Rs. 50 can be claimed.