TCS Entry in Sale Bill

This tutorial will guide you to the process of entering TCS details and its calculations at the time of billing in Logic ERP.

Setting & Allocating TCS Type

Step-1: Go to the Setup TCS Type window to create a new TCS Type as shown in the picture below. Fill all the details and define the amount after which TCS will be in effect.

Setup-TCS-Types-Updated-3.0

Step-2: Now go to Allocate Accounts to TCS Types window. There are two modes: Batch Entry & Edit Entry.

Allocate-Accounts-to-TCS-Types-1

Allocate the Account name to the TCS Type name as shown in the picture below:

Allocate-Accounts-to-TCS-Types-2

How does it work in Sale Bill?

There are two ways of managing TCS

  1. First way is to calculate TCS at the time of Bill and post TCS in control account. At the time of collection, TCS will be calculated on the receipt amount and posted to the TCS payable account
  2. Second way is to directly post the TCS amount to the TCS Payable account and do not calculate at the time of collection

Step-1 Go to the Sale Bill window -> Select Bil Series -> Select the Account name for which you have defined the TCS Type as shown in the steps above. Then click on Item details to generate the bill.

Sale-Bill-Select-Account-Name

Step-2 After filling items, click on the TCS Details button. You will see the TCS amount that’s applied to the bill.

For example, in this case, the maximum TCS Effective after Transaction Amount was defined as Rs. 5000000 in the Setup TCS Type window. Now here, the billing amount exceeds Rs. 50 Lakhs i.e., Rs. 65 Lakh. So here, the TCS amount has been applied on the Rs. 15 lakh that got accumulated in the bill after exceeding Rs. 50 lakh amount that was defined in the Setup TCS Type window.

Sale-Bill-TCS-Details

The TCS amount will be calculated and added to the field defined for TCS entry in Setup TCS Types (Its Handing amount in this example).

Sale-Bill-Handling-Amount

The TCS Payable A/C will get displayed in the report as shown in the picture below:

TCS-Displayed-in-Report

Posting in Cash/Bank vouchers

If you have configured for calculating TCS at the time of collection then whenever payment is received and total collection from the party for the financial year(or after the date defined in Setup TCS Types) exceeds the defined limit then TCS will be calculated on the amount exceeding the limit and posted to the payable account.

TCS-Cash-Receipts

For example, if the billing amount exceeds Rs. 50 lakh, then the TCS will be applied at the difference amount. As you can see in the picture above, the total billing amount is Rs. 60 Lakhs. Then,
Rs.6000000 – Rs.5000000 = Rs. 1000000
Therefore, the TCS will be applied to Rs.10 Lakh i.e., of Rs.10000, (as shown in the picture above).

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