A branch transfer is nothing but stock sent from Head Office/one Branch to another branch. Where as Consignment Transfer is sending the stock from either Head Office of Branch Office to its Agent. The Agent gets commission on the sale of Consignment where as Branch is the part of the organization. We can account such transaction in Tally ERP 9 with the help of Consignment/Branch Transfer VAT/Tax Class, and Branch/ Divisions Account Group. And there are two different Branch Accounting for Inter-Branch and Intra-Branch Transfers.
In both the cases you have create the Branch Ledger under Branch/ Division Account Head and stock received from Head Office should be taken as Purchases and returned stock to the Head Office should be treated as Sales. You have to select a different VAT/Tax Class while creating ledger.
When the goods are transferred to its branch located within the same state then this is known as the Inter-Branch Transfer. And it won't affect the VAT. Only we have to create a ledger of the branch under Branch/ Division. For stock receipts you need to select Purchase Accounts Group Head and used in VAT Returns should be YES and VAT/Tax Class must be Consignment/Branch Transfer Inward. For stock sent to branch select Sales Accounts Group Head and used in VAT Returns should be YES and VAT/Tax Class must be Consignment/Branch Transfer Outward.
Lets start creation the ledgers for Branch Transfers, for that you at least a Branch Ledger, a Branch Inward and a Outward Ledgers. So start with Branch Ledger.
Here i assist you in creating a ledger with full details just learn how to create a ledger.
You can create the inward ledger with the help of the replica below.
And regarding the outward the procedure is same as above but think in reverse manner regarding the selections as shown below.
If there are any stock sent to the same branch then use the Sales Voucher entry for recording such transaction as shown below.
VAT Computation Report
You see the complete report of the Consignment/Branch Inward and Outward Transactions in a single place. Select the menu options shown as below to get the place which is know as VAT Computation screen.
Gateway of Tally > Display > Statutory Reports > VAT > VAT Computation
By Default it won't show Press F12 Key and Select YES for showing all VAT Classes.
This is how a branch inward and outward transactions are handling in the case of Inter-State Branch Transfers.
If the Goods are transferred to its branch located out of the state then it is known as the Intra-Branch Transfer. There is no scope for Central Sales Tax like wise Inter-State Transfers VAT. But the receiving branch has to issue the F Form to the supplying branch in the place of C Form. Where the C Form is issued if it effect the CST @ 2%. Therefore Intra-Branch Transfers won't effect CST 2%.
And come the accounting entry in Tally is completely as same as in the case of Inter-State Transfer, but in Sales or Purchase vouchers entries you need to select F Form where in the Inter-State Transfer you have selected Not Applicable.