1. Tally.ERP 9 for Cash Basis Accounting
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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
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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.
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4. Structure of Cash Basis Accounting
Cash Basis
Accounting
Voucher Financial
Creation Reports
Service Tax
Calculation
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5. Process Flow – Cash Basis Accounting (An example : CA Business)
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6. Primary Requirement – Cash Basis Accounting
Category / Module Major Requirement Explanation
Cash basis Invoice Creation Typically, invoice is created at the time of providing service or
Accounting when the liability is created for the client, but as per cash basis
accounting the books of accounts shouldn’t get affected.
The cash receipt is acknowledged against the sales invoice. The
books of accounts would reflect the changes.
Outstanding Reports Outstanding 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 Year For 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 Calculation Service 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 Reports Financial reports in cash basis accounting should recognize
revenue only on receiving cash from the clients while accrued
receivables are not reflected in the reports.
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7. Tally.ERP 9 Fitment – Cash Basis Accounting
SL No. Requirement Part of Tally.ERP 9 Part of Solution
1 Assessment year in invoice Yes
2 Auto creation of masters Yes
3 Logo printing in invoice Yes
4 Terms and conditions in invoice Yes
5 Voucher numbering Yes
6 Maintain bill-wise details Yes
7 Multiple mailing details for company & ledgers Yes
8 Voucher type creation Yes
9 Define terms and conditions for invoice Yes
10 Creation, alteration, deletion of assessment year Yes
11 Professional fee head creation Yes
12 Configuration of service tax Yes
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8. Tally.ERP 9 Fitment – Cash Basis Accounting
SL No. Requirement Part of Tally.ERP 9 Part of Solution
13 Professional fee details during invoice level Yes
14 Additional details for professional fees during invoice Yes
creation
15 Visibility of receivables on invoice creation Yes
16 Financial statement behavior on creation of sales invoice Yes
17 Financial statement visibility on receipt Yes
18 Service tax visibility on invoice creation Yes
19 Service tax visibility on receipt of cash Yes
20 Printing of detailed service invoice with tax details Yes
21 Service tax reports ( input credit, ST3, payable etc.) Yes
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9. Thank You
For any queries, write to us :
support@tallysolutions.com
To find out more, visit :
http://www.tallysolutions.com/website/html/solutions/segment-vertical-solutions.php
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10. Thank You
For any queries, write to us :
support@tallysolutions.com
To find out more, visit :
http://www.tallysolutions.com/website/html/solutions/segment-vertical-solutions.php
© Tally Solutions Pvt. Ltd. All Rights Reserved