Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - rcm data feeding and report
How to record RCM expenses as a bill in BUSY?.
To record RCM (Reverse Charge Mechanism) expenses in BUSY, follow these steps:
1: Make sure you have an RCM expense entry that needs to be recorded.
2: In BUSY, go to GST Misc. Utilities.
3: Within GST Misc. Utilities, select Check/Post Consolidated RCM Payable.
4: Choose either Monthly Basis or Daily Basis, depending on your preference.
5: Select the relevant month or date range for which you want to record the RCM payable expenses.
6: You will see the RCM payable monthly/daily basis report.
7: If you wish to post the RCM liability, follow these steps:
A. In the RCM Payable Monthly Basis window, press the F4 key and proceed with the default account masters. Click Save, and confirm if you want to create a consolidated RCM payable voucher. Click Yes.
B. In the reverse charge liability window, find the option to Generate RCM Invoice Number. Click on it to generate the invoice number automatically.
C. Save this voucher to complete the process of consolidating and posting multiple RCM expenses in BUSY on a daily or monthly basis.
D. Then you can print Tax invoice/Bill for RCM.
I want to record a sale transaction under RCM in BUSY but I'm unable to tag the RCM tax to the sale. What should I do?
If are not able to record sale transaction under reverse charge,check in sale type if reverse sale type is created and to record sale inovice under rcm,follow these steps
Step 1 Open your company
Step 2 Go to transactions
Step 3 Then select sale voucher and proceed to add
Step 4 Now select series,date voucher number ect.
Step 5 While adding sale voucher,in sale type you have to select sale type as RCM or you can create by clicking F3 in sale type and then add name as rcm and select specify sales account and then taxation type as reverse charge and region local or central and save the sale type
Step 6 Now after selecting sale type,proceed to add party,itme details and other details and save the sale voucher
Step 7 After saving voucher,in sales invoice print also you can check,it will show reverse charge in header as yes
Note:When RCM in sale invoice is used,it doesnot calculate tax and is only to show sales invoice as rcm invoice as shown in sale invoice print also
What is the procedure to record RCM liability for freight charges paid to an unregistered supplier in BUSY?.
For know the procedure to record RCM liability for freight charges paid on unregistered supplier please follow the below steps
Step 1: need to entered RCM expense voucher entry for freight charges under journal voucher option
step 2: then select date & GST nature as RCM expenses
step 3: select expense account & party account with relevant amount . also ensure that party is unregistered then save entry.
step 4:Access GST Miscellaneous Utilities Navigate to this option within the software's transaction menu.
step 5:After that Choose Check/Post Consolidated RCM Payable option under GST miscellaneous utilities.
step 6:Select RCM Payable Mode Choose either monthly or daily basis for managing RCM payables.
step 7:Choose the Period monthly or daily basis for consolidating RCM payables and generate the report.
step 8:After opening the report, use the F4 key to generate a consolidated RCM payable voucher. Choose the relevant series and date,then save the voucher.
step 9:While saving the voucher, you'll be prompted to RCM nature, BUSY automatically select as compulsory(Unreg. Dealer) in reverse charge liability and save the voucher.
Why is there no option to reverse charge an invoice in BUSY Accounting Software?
To reverse charge an invoice in BUSY , follow the steps :
Step 1: Go to transaction menu click to purchase and add
Step 2: fill series name Voucher date Number and select purchase type as RCM Unreg
then select party name
Step 3: Create a item master which tax category must be mentioned then fill item quantity
rate amount and save the voucher
To post RCM Expense entry follow the steps :
Step 1: Go to transaction menu and click on Payment or journal then click on add
Step 2: Fill voucher series date and number and select GST Nature as RCM expense
Step 3: debit the expense and credit the party or bank and need to ensure that
expense ledger have mentioned the tax category and RCM nature as Compulsory
Step 4: Save the voucher
To post Consolidate RCM entries for the month follow the process :
Step 1: go to transaction menu and click on Gst Misc utilities
Step 2: Click on check post consolidated Rcm and Select monthly then select the month
then press F4 to post consolidated RCM voucher for the mopnth
How can I pay the bill using reverse charge on all bills?
To post the RCM entry in BUSY, follow the steps :
Step 1: Go to transaction menu click to purchase and add
Step 2: fill series name Voucher date Number and select purchase type as RCM Unreg
then select party name
Step 3: Create a item master which tax category must be mentioned then fill item quantity
rate amount and save the voucher
To post RCM Expense entry follow the steps :
Step 1: Go to transaction menu and click on Payment or journal then click on add
Step 2: Fill voucher series date and number and select GST Nature as RCM expense
Step 3: debit the expense and credit the party or bank and need to ensure that
expense ledger have mentioned the tax category and RCM nature as Compulsory
Step 4: Save the voucher
To post Consolidate RCM entries for the month follow the process :
Step 1: go to transaction menu and click on Gst Misc utilities
Step 2: Click on check post consolidated Rcm and Select monthly then select the month
then press F4 to post consolidated RCM voucher for the mopnth
I'm unable to find the RCM tax fields while creating a sales invoice in BUSY. Where can I specify that the sale is under RCM?
If are not able to record sale transaction under reverse charge,check in sale type if reverse sale type is created and to record sale inovice under rcm,follow these steps
Step 1 Open your company
Step 2 Go to transactions
Step 3 Then select sale voucher and proceed to add
Step 4 Now select series,date voucher number ect.
Step 5 While adding sale voucher,in sale type you have to select sale type as RCM or you can create by clicking F3 in sale type and then add name as rcm and select specify sales account and then taxation type as reverse charge and region local or central and save the sale type
Step 6 Now after selecting sale type,proceed to add party,itme details and other details and save the sale voucher
Step 7 After saving voucher,in sales invoice print also you can check,it will show reverse charge in header as yes
Note:When RCM in sale invoice is used,it doesnot calculate tax and is only to show sales invoice as rcm invoice as shown in sale invoice print also
Why am I unable to tag a particular tax rate as RCM tax in BUSY? What configuration do I need to do?
In BUSY you dont have to configure tax catgory master for rcm and it will be used for other transactions,to tag or reflect rcm entry in gst reports,you have to check these points
Step 1: You have to enter purchase with the sale type of RCM and Revese charge
must be selected as Compusory.
Step 2: If you record RCM entry through journal voucher then in the master of expense
RCM nature must be set as compulsary then and GST nature must selected
as RCM expense.
Step 3: Then for the pass the entry of consolidate you need to go to transaction then
GST misc. utilities. then post consolidated RCM payable.
Step 4: Then monthly basis and month in which RCM voucher falls. then here a
report of all RCM voucher will be shown then for post RCM consolidate
press F4. then save the voucher of consolidate.
Step 5: After the entry of the consolidate your RCM entry will be reflect in your GST
report.
How can I ensure that RCM is being applied correctly?
If you want to ensure that RCM is applied correctly please check given steps:
If you have did the RCM entry from journal or payment voucher check the below steps:
Step 1: Make sure you have do the correct entry
Step 2: Ensure that GST nature should be selected as RCM expense and in expense account rcm nature should be selected as compulsory
Step 3: Afterwards go to the transactions menu and click on GST miscellaneous utilities
Step 4: Then click on check/post consolidated RCM payable monthly or daily as required
Step 5: Press F4 after opening the report and press save button to save the consolidate voucher
If you have did the RCM entry through purchase voucher check the below steps:
Step 1: Make sure you have selected correct purchase type for RCM
Step 2: Make sure reverse charge should be selected as Compulsory
Step 3: Afterwards go to the transactions menu and click on GST miscellaneous utilities
Step 4: Click on check/post consolidated RCM payable monthly or daily as required
Step 5: Press F4 after opening the report and press save button to save the consolidate voucher
I made a transaction that should have a reverse charge but it is not showing in my books. What should I do to record it properly?
To record a reverse charge entry in BUSY you should follow the steps
You can use Purchase entry or RCM Expense entry both
Follow the steps to create RCM purchase entry
Step1 go to transaction menu and click on purchase and click to add
Step2 Fill voucher details like Voucher series number and date then select purchase Type
as RCM Unreg and select the party
Step3 Fill the item details like item name quantity rate amount and save the purchase voucher
but need to ensure that item master should have proper gst percent taken
To generate RCM expense follow the steps
Step1 Go to transaction menu and click on payment or journal voucher
Step2 fill the voucher details like series date and number and select GST nature as RCM expense
Step3 Create a expense ledger which tax category must be filled and RCM nature should be compulsory
Step4 debit the expense ledger and credit the party or cash or bank and save the voucher
How do I clear the RCM liability in BUSY?.
for Clear RCM liability in BUSY See the Flowing Step
Step 1: go to Transacttions GST Misc. Utilities then Go To Check/Post Consolidate RCM Payble Option
Step 2: Select the Option Monthly Basic or Daily Basis
Step 3: after select the Month Click on ok for generate Report
Step 4: in RCM Payble Monthly Basis Windows Click Function Key F4 select Voucher Series and Voucher Date then Click on Save Tab
Step 5:after Click on Save Tab popup Msg box Comeing Click ok Yes then Click on Save
Step 6: While Click on Save a New Windows Come Reverse Charge Liability click on Generate RCM Invoice No then Click on Save
Step 7: Now Go to Gst Report then Click on GST Summaries then Click on GST Summary Select Date Click on Ok
Step 8 : in GST Summery Windows Click on F4 and Select RCM to Regular Adjustment Option
Step 9 : debit Input and Credit Input Available RCM Account , save the Voucher
