1. © Tally Solutions Pvt. Ltd. All Rights Reserved Tally.ERP 9 for Cash Basis Accounting

2. © 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

3. © Tally Solutions Pvt. Ltd. All Rights Reserved 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.

4. © Tally Solutions Pvt. Ltd. All Rights Reserved 4 4 Structure of Cash Basis Accounting Cash Basis Accounting Voucher Creation Financial Reports Service Tax Calculation

5. © Tally Solutions Pvt. Ltd. All Rights Reserved 5 5 Process Flow – Cash Basis Accounting (An example : CA Business)

6. © Tally Solutions Pvt. Ltd. All Rights Reserved 6 6 Primary Requirement – Cash Basis Accounting Category / ModuleMajor RequirementExplanation Cash basis Accounting Invoice CreationTypically, invoice is created at the time of providing service or when the liability is created for the client, but as per cash basis accounting the books of accounts shouldnt get affected. The cash receipt is acknowledged against the sales invoice. The books of accounts would reflect the changes. Outstanding ReportsOutstanding 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 YearFor 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 CalculationService 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 ReportsFinancial reports in cash basis accounting should recognize revenue only on receiving cash from the clients while accrued receivables are not reflected in the reports.

7. © Tally Solutions Pvt. Ltd. All Rights Reserved 7 7 Tally.ERP 9 Fitment – Cash Basis Accounting Contd.. SL No.RequirementPart of Tally.ERP 9Part of Solution 1Assessment year in invoiceYes 2Auto creation of mastersYes 3Logo printing in invoiceYes 4Terms and conditions in invoiceYes 5Voucher numberingYes 6Maintain bill-wise detailsYes 7Multiple mailing details for company & ledgersYes 8Voucher type creationYes 9Define terms and conditions for invoiceYes 10Creation, alteration, deletion of assessment yearYes 11Professional fee head creationYes 12Configuration of service taxYes

8. © Tally Solutions Pvt. Ltd. All Rights Reserved 8 8 Tally.ERP 9 Fitment – Cash Basis Accounting SL No.RequirementPart of Tally.ERP 9Part of Solution 13Professional fee details during invoice levelYes 14Additional details for professional fees during invoice creationYes 15Visibility of receivables on invoice creationYes 16Financial statement behavior on creation of sales invoiceYes 17Financial statement visibility on receiptYes 18Service tax visibility on invoice creationYes 19Service tax visibility on receipt of cashYes 20Printing of detailed service invoice with tax detailsYes 21Service tax reports ( input credit, ST3, payable etc.)Yes

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