Frequently Asked Questions

To pass necessary accounting entries for RCM, please follow below mention points:
 Step 1: Go to Administration tab. 
 Step 2: Click on Master and create expense account, specifying the nature as RCM expense. 
 Step 3: Click on transaction tab. 
 Step 4: Click on journal voucher, specify voucher date, select GST nature as RCM Expense and save. 
 Step 5: Click on GST Misc. Utility and select generation of report as monthly or as on date. 
 Step 6: Press F4 key to post consolidate voucher. 
 Step 7: Click on ok for automatic posting for journal voucher.
 For making RCM payment, post journal voucher taking GST nature as GST payment to govt. You need to debit RCM output and credit RCM payable account.

In BUSY, You can add the Reverse charge voucher transaction either from purchase or journal voucher.
Pls follow the below steps for RCM Entry :
Step 1: In the expense or fixed assets account ,mention the tax category, select the rcm nature as compulsory and as import services if you have purchased any service from other country.
Step 2: Click on Transactions
Step 3: Then Journal
Step 3: Then Add 
Step 4: Select the GST nature as RCM Entry then DEBIT the expense or fixed asset account and then CREDIT the cash or party account.
Step 5: Click on Transactions
Step 6: Then GST Misc Utilities
Step 7: Then check/post consolidated rcm payable
Step 8: Select the entry and press f4 for posting the consolidated voucher after that RCM entry will reflect in the GST report.

In BUSY, You can add the Reverse charge voucher transaction either from purchase or journal voucher.
Pls follow the below steps for RCM Entry :
Step 1: In the expense or fixed assets account ,mention the tax category, select the rcm nature as compulsory and as import services if you have purchased any service from other country.
Step 2: Click on Transactions
Step 3: Then Journal
Step 3: Then Add 
Step 4: Select the GST nature as RCM Entry then DEBIT the expense or fixed asset account and then CREDIT the cash or party account.
Step 5: Click on Transactions
Step 6: Then GST Misc Utilities
Step 7: Then check/post consolidated rcm payable
Step 8: Select the entry and press f4 for posting the consolidated voucher after that RCM entry will reflect in the GST report.

If you wants to enter RCM entry in BUSY you may follow some steps:
 Step1: Create RCM Expense voucher by selecting RCM expenes as GST Nature in voucher.
 Step2: Consolidate RCM Expense voucher by check post consolidate rcm payable from gst mis utility.
 Step3: Then enter RCM Payment and RCM to regular tax adjustment entry by f4 in gst summary report.
 If you wants to enter Import purchase entry in BUSY you may follow some steps:
 Step1: Create purchase type master with import purchase taxation type.
 Step2: Create bill sundry of igst paid against import and custom duty and other expenses.
 Step3: Create a dummy party master and pass a journal voucher with real party master.
 Step4: Then create a purchase voucher with dummy party master.

"To post consolidate monthy RCM entries, please follow below mention points:
 Step 1: Go to Administration tab. 
 Step 2: Click on Master and create expense account, specifying the nature as RCM expense. 
 Step 3: Click on transaction tab. 
 Step 4: Click on journal voucher, specify voucher date, select GST nature as RCM Expense and save. 
 Step 5: Click on GST Misc. Utility and select generation of report as monthly or as on date. 
 Step 6: Press F4 key to post consolidate voucher. 
 Step 7: Click on ok for automatic posting for journal voucher.
 For making RCM payment, post journal voucher taking GST nature as GST payment to govt. You need to debit RCM output and credit RCM payable account."

To adjust your RCM payments against your regular GST liability in BUSY, 
 Step 1: Enter RCM Transaction and create consolidated RCM Payable Voucher with Reverse charge liability enter all details with TAXABLE VALUE. 
 Step 2: Go to Display Menu and click on GST Reports option 
 Step 3: Click on GST Summaries and click on GST Summary. 
 Step 4: Select stating date ,ending date and click on OK 
 Step 5: Use F4 key to popup window of post adjustment/payment voucher 
 step 6: click on RCM to Regular Tax Adjustment option. 
 step 7: will popup window of Generate Regular GST payment voucher click on save. 
 step 8: Next you can pass Journal voucher with GST payment to government.

In BUSY, you can record RCM transactions and consolidate it by using these steps:
Step 1: Go to Transaction menu then select Journal or payment voucher to post RCM expense entry.
Step 2: Click on Add and post the accounting entry with GST nature as RCM expense.
Step 3: After posting the RCM entry, Go to Transaction menu then select GST Misc. Utilities.
Step 4: Now, Click on Check/Post consolidate RCM payable option and then you have to select the range for which RCM consolidate to be post. You can either select Monthly basis or daily basis.
Step 5: Next, Mention the date range and open the RCM payable report.
Step 6: Select the entry and can post RCM consolidate entry by Pressing Function key F4 and save the window.

To record and adjust RCM payment in BUSY, please follow below mnentioned steps: 
 Step 1: Go to Administration tab.
 Step 2: Click on Master and create expense account, specifying the nature as RCM expense.
 Step 3: Click on transaction tab.
 Step 4: Click on journal voucher, specify voucher date, select GST nature as RCM Expense and save.
 Step 5: Click on GST Misc. Utility and select generation of report as monthly or as on date.
 Step 6: Press F4 key to post consolidate voucher.
 Step 7: Click on ok for automatic posting for journal voucher.
 For making RCM payment go to GST summary and press F4 key to make RCM payment. After making the payment, adjust the RCM input to regular tax input.

To check if your RCM purchase entry is reflecting in GSTR-3B in BUSY after posting it, you can view the GSTR-3B report in BUSY. The report will show the details of your RCM purchase entry and whether it has been properly reflected in the report. 
 Step 1: Go to Display Menu and click on GST Reports 
 Step 2: Click on GST Returns. 
 Step 3: To generate GSTR -3B click on GSTR -3B option. 
 Step 4: An on form GSTR-3B Select required details Starting date , ending date. 
 Step 5: In GSTR- 3B you will Reflected details of RCM after posting it. 
 Step 6: In GSTR - 3B - (d)Inward supp.(liable to rev.charges) with Txbl.Value and GST amt.

After saving the consolidated Entry in BUSY you need to do payment voucher.
 Step 1: click on F4 - Post consolidated RCM Payable Voucher.
 Step 2: Generate Consolidated RCM Payable Voucher and make the necessary adjustments.
 Step 3: And create consolidated RCM Payable Voucher do Yes.
 Step 4: After doing Yes Journal voucher will be open.
 Step 5: select voucher series name, date, voucher no., GST Nature consolidated RCM payable.
 Step 6: Example: debit account IGST Input Available (RCM) and IGS Output (RCM)
 Step 7: Save Journal Voucher.
 Step 8: Reverse Charge Liability window will popup enter all detail RCM Nature, party name, other details
 Step 9: click on save. you will ask to RCM tax invoice printing. if required you can print.