Frequently Asked
Questions
Find Solutions to Common Issues Related to configurations - voucher entry accounting
When should I use double entry and when single entry booking?
The choice of using single entry or double entry bookkeeping depends on the type and size of your business, as well as your accounting preferences. Here are some general guidelines to help you decide:
Single entry bookkeeping is simple, involves one entry per transaction, and is suitable for small businesses with cash-based accounting. It is easy to set up and maintain, but it does not provide a complete picture of your financial position.
Double entry bookkeeping is more complex, involves two entries per transaction, and is ideal for businesses with complex transactions and accrual-based accounting. It provides a more accurate and balanced view of your business.
How do I enter expenses in BUSY
In BUSY , we can post expense entry either through journal voucher or purchase voucher.
Please find below the steps to post expense entry through journal voucher :
Step 1: Go to transaction
Step 2: Journal voucher
Step 3: Add the voucher
Step 4 : post accounting entry for expense
Please find below the steps to post expense entry through purchase voucher :
Step 1: Go to Transaction
Step 2: Purchase
Step 3: Add voucher
Step 4: Mention required data at voucher entry(Create Item master and tag expense account 'at specify purchase account' in item master.This will allow you to adjust expense amounts in the expense account ledger)
Step 5: Post entry
I made an invoice with % GST but the tax amount is not appearing in the invoice. Why is GST amount not getting calculated automatically?
There could be various reasons why GST amount is not calculating in the invoice in BUSY
to solve the issue follow the steps
1 if you have taken sale type as 12% in voucher then you need to apply tax also to apply
auto calculation of tax in voucher
2 If you have select sale Type 12% but in item master not select the tax category then the tax
will not apply on voucher if you click on apply tax so open the item in modify mode and check
the tax category given properly to calculate tax automatically
Should I use C or D for a specific transaction, such as Receipt, Payment and Journal etc? How do I determine which one is correct?
Yes, you should use C and D in transactions such as receipts, payments, and journals, as it is mandatory to input them. This determination is based on the nature of the accounts used in the transaction, and it operates in the Double Entry System, which records transactions affecting two or more accounts. For every transaction, there are at least two accounts involved: one account is debited, and another account is credited. Follow these three golden rules when performing such transactions:
1. Debit what comes in, Credit what goes out.
2. Debit all expenses and losses, Credit all incomes and gains.
3. Debit the receiver, Credit the giver.
I mistakenly entered the insurance expense voucher without applying GST. How can I rectify this and include the GST amount?
To update Gst in insurance voucher kindly follow below steps:
Step 1: Click on Transaction Menu and then select Journal voucher.
Step 2: Click on Modify & Select the vouche Series & then specify the voucher no which we want to modify
Step 3: In GST Nature Field select register expense B2B from dropdown
Step 4: Debit the Insurance Charge Taxable Amount
Step 5: Debit the Tax Amount input tax as applicable
Step 6: Credit the Insurance Service Provider
Step 7: Click on Save or Press F2
Step 8: While saving we will get option to update GST details, HSN No, Party Details.
I am trying to record a payment but unable to save the voucher. What could be the issue?
You may encounter some difficulties in saving the payment voucher in BUSY. This could happen for various reasons, such as:
1. The debit and credit amounts are not equal, which violates the accounting principle of double-entry bookkeeping.
2. The payment mode is cash, but the warning set of negative cash is don’t allow, which prevents you from saving the voucher if your cash balance is insufficient.
3. The bill reference is not adjusted fully, which means that there is a mismatch between the payment amount and the bill reference amount.
Depending on the error message that appears, there may be other reasons as well.
What is the right process to record expenses from a vendor who files GST quarterly returns?
Here are the steps for entering expense invoice :
Step 1: Go to Transaction menu
Step 2: Click on journal voucher
Step 3: Then click on ADD button
Step 4: Then create invoice and select gst nature as Registered Expense (B2B)
Step 5: Then specify expense in the debit side and party and tax in credit side
Step 6: Then while saving invoice registered expense window will appear
Step 7: Then mention correct details of party and original invoice
Step 8: Then click on Ok button
Step 9: Then click on save button to create invoice
What is the process to show the GST expense in the journal voucher?
To record the GST expense entry through journal voucher then follow the below steps.
Step 1: Click on Administration and Then Masters
Step 2: Then Modify and Select the expense account, Here you have to choose the GST Type as GST Applicable from the dropdown then mention the tax category and ITC eligibility.
Step 3: Click on Transactions and Then Journal
Step 4: Then Add and Select the GST Nature as Registered expense B2B
Step 5: DEBIT the expense account, GST input account and CREDIT the cash or party account and when you save the voucher then window will popup where shows mention the details and save it.
What is the correct way to enter fixed asset acquisition entries in BUSY
For enterng fixed asset acquisition entries in BUSY first create fixed assets ledger, or master. Please follow below mention steps for asset creation:-
Step 1:- Administration Tab
Step 2:- Masters
Step 3:- Account
Step 4:- Add, enter name of fixed asset in group master select fixed asset. A window appears enter depreciation rate of asset then save details of asset.
After creation on asset in BUSY 2 ways to do entry of fixed asset acquisition through Purchase voucher, Or through Journal voucher. Debiit fixed asset against of vendor from whom asset is purchased with respective amounts.
Recommendation:- We recommend you for accounting entries please concern with your CA, or accountant.
How can we do the billing and print invoices in BUSY?
In BUSY, We can create Dual Voucher, Accounting Voucher and Pure Inventory Voucher.
Dual Voucher : Here Accounting and Inventory both get hit. Vouchers which are Sales, Purchase, Sales Return and Purchase Return.
Accounting Voucher : It refers to where only Accounting get hit. Vouchers which are Payment, Receipt, Journal,Contra, Debit and Credit note without Items.
Pure Inventory Voucher : It refers to where Only Inventory get hit. Vouchers which Matrial issue to party, Material Receive from Party, Stock Journal, Stock Transfer, Production and Unassemble.
For printing, When we save voucher then can print it or export it as per our requirement.
