Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - rcm data feeding and report
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
How do I book RCM expenses in BUSY?.
To book RCM expenses in BUSY, please follow below steps:
Step 1: add Journal entry for RCM expenses From transaction menu.
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.
I want to enter reverse charge in my purchase voucher. What is the process to add reverse charge in a purchase voucher in BUSY?How can I adjust the tax liability for a specific period in BUSY?
To book RCM expenses by purchase voucher in BUSY, please follow below steps:
Step 1: Click on transaction menu and select purchase voucher.
Step 2: Click on add then select voucher series and voucher type as Local-RCM / UnReg.
Step 3: Enter the details of the supplier and In the item details section, enter the details of the purchased goods or services and save the voucher.
Step : Click on transcation menu and select GST Miscellaneous Utilities.
Step 5: After that Choose Check/Post Consolidated RCM Payable option.
Step 6:Select 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.
I want the RCM tax to get calculated automatically when I create a sales invoice with RCM in BUSY. How can I get this done?
In BUSY if you wants to record sale transaction as rcm and wants to show in invoice as 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
I made a payment for Reverse Charge Mechanism (RCM) but I am unsure how to record it in the software. Could you please guide me on the steps to upload the RCM payment entry?
To record RCM payment in software, it is important to book RCM expense entry in BUSY first and with the help of below steps you can post payment made for RCM.
Step 1: Go in Transaction > Select Payment/ Journal voucher click on add.
Step 2: Mention GST nature as GST Payment to Government.
Step 3: Debit CGST Output (RCM)/ SGST Output (RCM)/ IGST Output (RCM) and credit respective bank account.
Step 4 : While saving a window of GST payment deatils will appear, specify GST pyament type as RCM payment save the transaction.
Step 5: You can claim the tax input for RCM tax payment, for that post a transaction in journal voucher with GST tax adjustments.
Step 6 : Debit CGST Input/ SGST Input/ IGST Input and credit CGST Output (RCM)/ SGST Output (RCM)/ IGST Output (RCM).
Step 7 : While saving a window of GST tax adjustment will appear specify RCM to regular adjustment and save the trasancation.
How do I book a purchase entry for reverse charge mechanism (RCM) in BUSY?.
To book RCM expenses in BUSY, please follow below steps:
Step 1: add Journal entry for RCM expenses From transaction menu.
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.
How do I post the RCM entry through general, payment or purchase?.
To post the RCM entry through general payment or purchase you have to follow the steps
1 To post rcm entry through purchase you have to go to the purcahse voucher and select
the purchase type of RCM/Unregister where taxation type should be RCM/Unreg
2 then enter the other details of purchase voucher where party master need to under
gst dealer type unregister or register and save the voucher with other detail .
3 To generate RCM entry through Payment voucher you have to create the expense ledger
where RCM nature must be compulsory and tax category must be mentioned
4 in payment voucher gst nature must be rcm expense and in voucher entry made Dr. the
expense and Cr. the party or bank or cash then save the voucher
5 from transaction menu gst misc utilities option click on check or post consolidate RCM
select the monthly option and the month then press F4 button to consolidate RCM entry
How do I generate RCM for unregistered parties in BUSY?.
for generate RCM for unregister parties please follow below steps
step 1: add Journal entry for RCM expenses From transaction menu.
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.
How do I record consolidated RCM payable entries in BUSY?.
To post consolidated RCM (Reverse Charge Mechanism) payable vouchers in BUSY, follow these simplified steps:
Step 1: Start by going to the Transaction Menu.
Step 2: From there, pick GST Misc. Utilities and then select Check/Post Consolidated RCM Payable.
Step 3: Decide whether you want to post RCM Payable vouchers on a monthly or daily basis.
Step 4: Specify the date range or month for posting RCM Vouchers and click OK.
Step 5: Press the F4 button on the report screen to post RCM Payable vouchers.
Step 6: Under the Generate Consolidated RCM Payable Voucher screen, select your Journal Voucher Series and the respective Accounting Master (usually the default master is selected). Then, click the Save button.
Step 7: The system will automatically post the accounts and their RCM payable amounts in the Journal voucher. You only need to save the Journal voucher.
By following these steps, you can successfully post your consolidated RCM payable vouchers in BUSY.
