Purchase Import Voucher Entry in Tally ERP 9

Query

How do I record a Purchase Import entry where Item value includes additional expenses however bill amount does not include the additional expense incurred in procuring the items?

Answer

In a case of Purchase Import, items are purchased from foreign in another currency such as US Dollar and local expenses are incurred in order to bring the item to production unit.

So, actual Purchase invoice which supplier has provided will be in another currency and Local expenses paid or payable will be in Base currency.

In this scenario, Supplier bill amount should not include Local expenses paid or payable amount but Item value should include Local expenses also in order to show the actual cost of an Item.

Example:

Expenses incurred for bringing the material:

Custom Duty                                                  –  Rs.1,500.00

Clearing and forwarding charges                        -  Rs.2,000.00

Freight Charges                                               -  Rs.1,000.00

Amount payable to Foreign Supplier is $3250.00 and above expenses to be included in Item cost by appropriating the value.

Below are the Steps to implement the same in Tally.

Master Creation

Note: In Group Master, Option “Method to Allocate when used in Purchase Invoice”. This option is provided for appropriating the cost to the Item value in purchase invoice.

Purchase Invoice Creation in Invoice Mode

Rate of Exchange 1$ = Rs.50

Entering the Import Purchase Invoice

Entering the Additional cost Details incurred.

Enter the expense payable to transfer the Expenses. Expenses Entry mainly used to appropriate the expenses value.

Save the Purchase Entry.

Now check the Stock summary.

Custom duty Paid Entry

            Custom Duty Payable a/c                                         Dr.    ---  1500

                        To Cash                                                        Cr.          1500

Clearing and Forwarding Journal Entry

            Clearing and Forwarding Charges Payable a/c           Dr.       2000   

                        To Freight Forwarders a/c                               Cr.                   2000

Local Freight Paid Entry

            Freight Charges – Import Payable a/c                         Dr.       1000

                        To Cash                                                           Cr.                   1000