Explain Journal adjustment flag “Reversal of Input tax” for Odishain in Tally ERP 9 Release 5

Reversal of input tax transactions are recorded to adjust the input tax paid for goods as expense when the respective goods are dispensed through means other than sales.

1.     Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2.     ClickJ: Stat Adjustment to enable required options in the Stat Adjustment Details screen.
3.     Select Type of duty/tax as VAT.
4.     SelectReversal of Input Tax as Nature of adjustment.

5.     SelectStock Transfer in the Additional Details field.

6.     PressEnter to return to the voucher.

7.     Debit the expense ledger, and enter the value.

8.     Credit the VAT ledger.

9.     Enter the VAT Details and press Ctrl+A to accept.

10.  Press Enter to save.