Rendering of Services

Rendering of Services is the revenue ledger for work done rather than goods handed over: trek packages, guide fees, hotel booking commissions, consulting. A Sales Invoice with a service item credits it net of VAT, and no stock entry follows because nothing leaves a warehouse. For a travel company this is usually the largest income line. Services are recognised when performed, so a deposit received for a future trek waits in Contract Liabilities and is moved here when the invoice is raised after the trip. Customers that are companies may deduct TDS on service fees; the invoice is still for the full amount and the shortfall in the receipt goes to TDS Receivable, not deducted from revenue.

Rendering of Services for the period = Net value of service invoices - Credit notes, excluding VAT

1. 01Go to Stock > Item and make sure the service item has Maintain Stock unticked and this ledger as income account.
2. 02Go to Invoicing > Sales Invoice > New, pick the customer and add the service item with the agreed price.
3. 03Apply the template VAT 13% - YFF and check the total.
4. 04Submit. The entry below posts and the invoice syncs to the CBMS.
5. 05If an advance exists, allocate it in the Advances section so Debtors shows only the balance.
6. 06Reverse a cancelled service with Create > Return, never by deleting the invoice.

Set it as the income account on service items. Sales Invoice posts here automatically; recognise it when the trip or work is done.

Dr Debtors Rs 1,13,000, Cr Rendering of Services Rs 1,00,000, Cr VAT Payable Rs 13,000 for a Langtang trek package.