Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - rcm data feeding and report
How is GST calculated for RCM transactions in BUSY?.
In BUSY for RCM transaction gst calculate automaticatlly from expense voucher and
from purchase voucher from expense ledger or from Item master in which tax rate mentioned
to post the tax liability you have to follow the steps
1 after creating of RCM expense or RCM purchase go to transaction menu
2 GST misc utilities and click check post consolidated RCM
3 select monthly and select the month then press F4 to post consolidated RCM payable entry
I created a master data for my tempo expenses. I made RCM compulsory on them When I post the journal voucher, will the credit be posted automatically?
when you post journal voucher for RCM
step 1: Select the Tempo Expenses account or ledger on the debit side. Enter the relevant amount that represents the expense under this account.
step 2: the specific account on the credit side does not get automatically selected by the system. You will need to manually select the Account for the credit entry. Unlike the debit side where you choose the Tempo Expenses account, the credit side requires a manual selection.
I want to record a transaction with reverse charge but am unsure which account to use. How should I record it?
To record a transaction with reverse charge you can 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
I am having trouble consolidating my RCM GST liability for the month. How can I rectify this issue?
To rectify the issue of consolidating your GST liability for the month, you can follow these steps in BUSY:
1. Go to the GST Miscellaneous Utility.
2. Select "Post Consolidated RCM Payable."
3. Choose the monthly basis and select the relevant month.
4. Press F4 to generate the entry.
5. Save the entry with the date as the last day of the month.
By following these steps, you should be able to consolidate your GST liability successfully.
I want to consolidate multiple RCM expenses into one voucher in BUSY. What should be the steps?
To consolidate multiple RCM expenses into one voucher in BUSY, follow these steps:
1. Go to the GST Miscellaneous Utility.
2. Select the option to post consolidated RCM payable.
3. Choose the monthly basis and select the month.
4. Press F4 to generate the entry.
5. Save the entry with the date as the last day of the month.
By following these steps, you will be able to consolidate multiple RCM expenses into one voucher in BUSY.
What should I do if I entered an expense as RCM without being taxed?
If you entered an expense as RCM without being taxed in BUSY, then you need to post RCM consolidation voucher by using these steps:
Step 1: Open your company then go to gst misc. utilities.
Step 2: Click on check or post consolidated RCM payable and choose either monthly basis or daily basis as required.
Step 3: Select period then open the report and you will your rcm expense entry here.
Step 4: Press F4 to post consolidate voucher and save that voucher.
How do I properly record and reference RCM expenses that are tax-free?
To enter an RCM entry, you need to follow these steps:
Step 1: BUSY has different models to feed RCM entries, e.g., purchase payment or journal voucher.
Step:2 Select the transaction option. Click on the add option.
Step 3 after Enter the date and voucher number, then in GST. Nature Detaile Select RCM expenses.
Step 4: After selecting gst Nature, go to the voucher body debit will expense account, press alt plus m, and select RCM Neature is Compulsory.
Step 5: Save the Voucher
I am getting an error saying RCM is not applicable even though it should be. What should I check?
If you are getting an error saying RCM is not applicable even though it should be, you should check the following:
1. Verify if the RCM nature is set correctly in GST nature for the expense in question.
2. Press Alt+M on expense master for modify and Ensure that the expense falls under the reverse charge mechanism (RCM) category.
3. If the issue persists, consult the documentation or support resources provided by your accounting software for further assistance.
How can I track the input tax credit (ITC) availed on RCM expenses?
To track the input tax credit (ITC) availed on RCM expenses Kindly follow the following Steps:
Step 1: To check RCM report Go to Transactions Menu click on GST Misc. Utilities option.
Step 2: Check/Post Consolidated RCM Payable and select the option Monthly Basis or Daily Basis.
Step 3: If selected RCM payable Monthly Basis select Month and click on OK.
Step 4: on screen report you can do summary - with ALT + 5, export and filter
How do I adjust GST liability against input tax credit in BUSY?.
To adjust GST liability against input tax credit in BUSY you should follow the steps
Step1 Open company in BUSY and go to display menu
Step2 Click on GST reports and then GST summaries
Step3 Click on GST summary and select the date range
Step4 Press F4 and click on RCM to regular tax adjustment and pass the journal entry automaically
generated by BUSY to adjust your Input tax credit with GST liability