Hello. In this post we are going to learn the working of Service Invoicing in Saral accounting software.
This is a multi-part series where we will be discussing about service invoicing in Saral. We also have a general blog on the same topic which you can check – GST service invoice.
Let us begin with Part-1 of the series.
Service invoicing in Saral is used to generate and manage business transaction entries related to services like Manpower services, Repair & Maintenance services, Hotel services and many more.
This module is entirely used where the business is a pure service provider and wants to manage their business transaction details like Order, Invoice, Receipt, Debit/ Credit note, TDS applicability and related.
This module also helps the user to file their GST return related to their Service transactions.
- Service is what you give is known as Service sale, Service is what you take is known as Service purchase.
- GST rates for service are not below than 12% except 3% and not above 18%.
- TDS estimation and deduction on services.
- Formula custom based calculation, especially for Human resource management services.
- Service invoicing module is available only in the Gold and Diamond version of Saral Accounting software.
- Managing reimbursement and expense policy can be handled in service invoicing.
By following the below steps, let us begin to understand how Service Invoicing module is handled in Saral Accounting software.
Since Service Invoicing is a vast process, we will be segmenting the process into multiple posts. This being the first post will have the following processes explained;
- Enabling Service Invoicing
- Invoice Setting
- Service master creation with sub-services.
Firstly, we need to create a service-based company profile by selecting Type of Business as Service and enabling Service Invoicing module in Company Master Window.
In parallel windows, Company GST number has to be entered if GST return filing has to be done through Saral. Also, apply the applicable GST tax rate and create the required tax ledgers through the default ledger option.
On enabling Service Invoicing, Service Invoicing module tab will be made available for work.
Before going ahead, configure the basic Invoice settings by going to Invoice settings under Service Invoicing tab.
In the Invoice Settings window, go to the General Settings tab and set the configuration as per requirement. i.e. if TDS post billing information is required then provide the TDS threshold limit under the option Post Billing for TDS. Similarly, if any of the Services given has sub-service type then tick the option Enable Sub Service.
Next, select the Round Off ledger for Amount receivable and Tax.
Also, map the ledgers for TDS Account and Write Off Account.
You can create the ledgers required under Head of Accounts through Default Ledgers.
Now, click Apply to save the settings. This completes the basic settings for Service Invoicing module.
Now, let us start by making a list of services provided by the business to its customers. To create the service list, go to service Master under Master tab and click on service Master [GST] or optionally use shortcut keys Shift+F2 to open Service Master window.
Now you can see the GST Service Master Window. You have to enter the Service list with their respective specified details in this window.
To start with, enter the Service Name with its specific Taxability type i.e. whether it is Taxable (Services come under GST) or Expense Reimbursement (Expenses that are availed during a particular service).
- Tax and SAC (Service Accounting Code) will be applicable for taxable services only and not applicable for the expense reimbursement services.
- Examples for Expense Reimbursement services are Transportation/Labour charges, etc.,
Next, click on Taxable/Exempted Services to select the service as from the list given by GSTN. On selecting the required service, the SAC will be auto taken and displayed on the window.
Under Tax details, specify other related details of the Service. Enable Apply Abatement, if any abatement rate is applicable to the service with its abated rate of tax and the effective date of such abatement.
Similarly, if the service is applicable under RCM list of services, select the type of service from the drop-down at Reverse Charge and enter the applicable rate of RCM payable from your end.
After-tax details, enter the rate of tax applicable to the service under CGST/SGST/IGST Details. Here, select the tax rate applicable to the service for both Intra-state and Inter-state transaction. Next, map the income ledgers for the transactions under Income Head.
If required, Additional description of the Service can be given. Also, if additional Service Charge is applicable, then you can define the same in Amount or Percentage.
If the Service has any sub-service, then enable Allow Sub Services. In case, the rate of service is derived based on a formula, enable Apply Format Formula.
After all the required setting and entries, click on Save to save the service. Similarly, enter all the services in the business.
In the case of Sub service, go to Sub Service Master under the Master tab.
In the Sub Service Master window, enter the different types of sub-service given under the particular service with its Default Rate of service and save the details.
Finally, This completes the master configuration process in Service Invoicing Module of Saral.