Normal loss of goods occurs because of some inherent, natural or unavoidable reasons. Loss of goods occurs either during the course of shipping or damage or theft etc.
Examples: Loss are of coal in loading and unloading, Loss of spirit or petrol due to evaporation, Loss of timber in cutting into pieces and so on.
In Tally.ERP 9 you can account the Loss, theft, shortage or wastage of Excisable Stock Items.
Example: On 10-9-2010 ABC company purchased 10,000 Kgs of Hot Rolled Coils @ 100 per kg from Sterling Steel Industries.
Against this purchase ABC company sold 9980Kgs of Hot Rolled Coils to 2 customers in installments of 2000kgs per load. 20 Kgs were lost during cutting the Roll.
On 18-9-2010 ABC Company wants to account the Loss of 20KGs of Hot Rolled Coils on which the CENVAT Credit is not passed on.
To account the loss of Excise Stock Item follow the given Procedure
Step 1: Record the Excise Purchases
Record the purchases as shown below in Excise - Purchases Voucher
Step 2: Record the Excise Sales
Record the sales as shown below in Excise - Sales Voucher
1. Goods Sold to Customer - Decora Equipments
Similarly, on 14-09-2010 2000 Kgs of Hot Rolled Coils were sold @ 800 per Kg
2. Goods Sold to Customer - Sundar Steel Traders
Similarly, on 15-09-2010 2000 Kgs of Hot Rolled Coils & on 17-09-2010 1980 Kgs were sold @ 750 per Kg
Step 3: Create Direct Expenses Ledger (to account loss of Excise Stock)
Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
To account the loss of Stock create a ledger under Direct Expenses as shown below
Step 4: Create Voucher Class in Journal Voucher
Loss/Wastage/Shortage/Theft of Excise Stocks can be accounted in Journal Voucher by creating a voucher class.
To create the Voucher Class in Journal voucher type
Go to Gateway of Tally > Accounts Info.> Voucher Types > Alter > Journal
In Voucher Type Alteration screen, tab down to Name of Class field and specify the class name as Loss/Wastage Adjustment and press enter to view Voucher Type Class screen
In Voucher Type Class screen
Set the option Use Class for Dealer Excise Adjustments to Yes
Step 5: Record the transaction in Journal Voucher
To record the transaction in Journal Voucher
Go to Gateway of Tally > Accounting Vouchers > F7: Journal
In Change Voucher Type screen select Loss/Wastage Adjustment in Class field
To identify the type of voucher recorded in Used for field Shortage/Damage/Loss of Excise Stock will be displayed automatically and cursor will not move to Used for field.
In Excise Unit field select the appropriate excise unit for which the loss/wastage/theft is accounted. Select ABC Company
Note: As Tally.ERP 9 allows to maintain accounts of Multiple Excise Units in a Single Company, in Loss/Wastage accounting Journal VoucherExcise Unit field has been provided to select the appropriate Excise Unit.
In Debit field select direct expenses ledger - Loss of Goods
In Debit Amount field enter Rs. 2000 (20*100)
In Credit field select the Purchase Ledger - Purchases @ 4% (selected while accounting the purchase of stock items which are lost) to reverse the purchase cost. Press Enter to view Inventory Allocations screen
In Inventory Allocations screen
In Name of Item field select the Stock Item which is lost or wasted e.g. Hot Rolled Coils
After selection of stock item press Enter to view Supplier Details screen
In Supplier Details screen
In Supplier Invoice Number/Date field select the Purchase bill against which the goods are lost or wasted. In this case ABC Company has lost goods against the Purchase Bill -ST/7485/10-11 dated 10-9-2010
On selection of Bill, Supplier Name/Nature of Purchase and Shortage Quantity will be displayed.
In this case the Quantity Available for the bill - ST/7485/10-11 is 20 and the Shortage Quantity is also 20. Hence accept the same.
Note: In Shortage Quantity field the Quantity available under the selected bill will be defaulted. if the goods lost/wasted/shortage is different than the goods available quantity the specify the same in Shortage Quantity field.
Example: For Bill-00125 the available Quantity is 200 but the goods lost is only 80 then in Shortage Quantity field specify 80.
In Stock Item Allocations screen
In Quantity field specify the quantity of goods lost/wasted/short i.e. 20 kg
In Rate field mention the Rate at which the goods was purchased i.e. Rs. 100 per kg
Amount will be calculated and displayed automatically.
Press Enter to accept Stock Item Allocations and Inventory Allocations screen
The completed Excise - Journal voucher is displayed as shown
Press Enter to save.
The above Refund/Reversal entry will affect the following Excise Reports:
1. Excise Stock Register
2. Form RG 23D
3. Excise Purchase Bill Register