✅ How to Create  Direct & Indirect Expenses

📘 How to Create Indirect Expenses 

Before creating ledgers, remember this simple rule to keep your Balance Sheet accurate:

• Direct Expenses: Costs incurred before the product reaches your warehouse/shop (Factory/Production).

• Indirect Expenses: Costs incurred after the product is ready or for general office operations (Office/Admin).

Indirect Expenses are expenses not directly related to manufacturing or trading,
but necessary for running the business on a daily basis.

🔹 Examples of Indirect Expenses

• Phone Bill
• Staff Salary
• Building Rent
• Electricity (KEB) Bill
• Paper & Printing Charges
• Tea & Refreshments
• Bank Charges
• DD Charges
• Advertising Expenses
• Travelling Allowance (TA)
• Postage & Courier
• Audit Fees
• Utilities
• HRA Expenses
• Bonus
• Pooja Expenses
• Internet Charges
• Repairs & Maintenance
• Office Equipment Expenses
• Drinking Water
• Stationery
• Petty Cash Expenses

📱 Create Phone Bill Ledger (Single Ledger Method)

🪜 Steps (TallyPrime 7.0)

1. Open Gateway of Tally
2. Select Create (under Masters)
3. Choose Ledger and press Enter
   OR
   Press Alt + G (Go To) → Create Master → Ledger → Press Enter
4. In Name, enter: Phone Bill
5. In Under, select: Indirect Expenses
6. Maintain balances bill-by-bill: No
7. Cost Centre Applicable: No (Select Yes only if company uses cost centres)
8. Type of Ledger: Not Applicable
9. GST Applicable: No (Select Yes if input GST credit required)
10. Provide Bank Details: No (Only required for Bank Ledger)
11. Press Ctrl + A to Accept and Save

🧠 Creative Coach Tip:
All office-related expenses which do not affect cost of goods are treated as Indirect Expenses.

🏭 How to Create Direct Expenses 

Direct Expenses are expenses directly related to production, purchase,
or bringing goods to sale condition.

🔹 Examples of Direct Expenses

• Wages
• Loading Charges
• Unloading Charges
• Insurance Charges (Goods)
• Freight Charges
• Packing Charges
• Transport Charges

👷 Create Wages Ledger (Single Ledger Method)

🪜 Steps (TallyPrime 7.0)

1. Open Gateway of Tally
2. Select Create (under Masters)
3. Choose Ledger and press Enter
   OR
   Press Alt + G (Go To) → Create Master → Ledger → Press Enter
4. In Name, enter: Wages
5. In Under, select: Direct Expenses
6. Maintain balances bill-by-bill: No
7. Cost Centre Applicable: No (Select Yes if tracking department-wise wages)
8. Type of Ledger: Not Applicable
9. GST Applicable: No (Applicable only if GST required)
10. Provide Bank Details: No
11. Press Ctrl + A to Accept and Save

📌 Important Difference