Tally Lesson 4 Accounting Voucher Entries

Voucher Entry

Note : while learning 1st time do not go in details separate  detail pages will be posted each voucher wise.

1. Contra Voucher [F4]

Contra entry is a transaction involving transfer of cash between one Cash A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction indicating transfer of funds from:

● Cash account to Cash account

● Cash account to Bank account

● Bank account to Cash account

● Bank account to Bank account

(In short cash to bank and bank to cash entries are passed through contra entry)

To view the Contra Voucher Entry Screen,

● Go to Gateway of Tally > Accounting Vouchers

● Select F4: Contra from the Button Bar or press F4

Recording Contra Entry in Single Entry Mode

The Contra Voucher can be recorded using Single entry mode or Double Entry mode .  

To change between Single Entry and Double Entry mode, we need to change the setting Use Single Entry mode for Pymt/Rcpt/Contra to Yes/No in F12: Configure .

To view Contra Voucher creation screen in Single Entry mode,

1. Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra

2. For example, to transfer funds from Cash Account to Bank Account:

● Debit the Bank Account.

● Credit the Cash Account.

The entry will be displayed as shown:

3. In the Bank Allocation screen, users can select the mode of transaction from the List of Transaction Type as shown:

Limitation

Suitable for only for single debit & multiple credit

Advantages of Single Entry Mode

● Faster data entry.

Recording Contra Entry in Double Entry Mode

Double entry mode means multiple debit and multiple credit in a single entry

To enter in Double Entry Mode,

To select  Double entry mode, [config>voucher entry] set Use Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.

● Go to Gateway of Tally > Accounting Vouchers.

● Select F4: Contra from the Button Bar or press F4 .

If you record the same entry (passed in single entry mode) in Double Entry Mode, it will be displayed as shown:

Introduction to Payment Voucher

Payment voucher is used to account all the payments made by the company by way of Cash/Bank.

Payment voucher can be passed using Single Entry or Double Entry mode by

Recording a Payment Entry

Payment voucher is used to record all bank and cash payments. For example, a company settles a creditor's bill by cheque.

[in short whenever payment is made payment voucher is passed]

● Go to Gateway of Tally > Accounting Vouchers > F5: Payment .

Payment voucher can be passed using Single Entry or Double Entry mode by configuring .[same config as shown in contra ]

For example : The company settles expenses of Conveyance, Staff Welfare, Postage and Stationery through Cash in one voucher. This entry can be passed in single entry mode where you will be crediting the Cash Ledger only once and the entry appears as shown below:

Note: Similarly the transactions can be recorded in single-entry mode even in Receipt and Contra vouchers.

Payment in Voucher entry mode

When you have multiple debits and credits in an entry, double entry mode is the suggested way of passing the entry.

Payment Vouchers can be created using Bank as the mode of payment.

● Go to Gateway of Tally > Accounting Vouchers

● Select F5: Payment from the Button Bar or press F5 .

On entering the party details and amount, the bank allocation screen appears as shown below:

The details in the bank allocation screen is captured as defined in the Provide Bank Details in the party master. However these details can be altered as shown below:

The fields that are to be filled vary with the Transaction Type selected.

● On selecting Inter Bank Transfer , the additional fields that appear are that of A/c No. , IFSC Code , Bank and Transfer Mode .

● On selecting Same Bank Transfer , the additional field of A/c No. appears.

The additional field of Beneficiary Code appears on setting the option Allow to Beneficiary Code to Yes in F11: Features > Edit banking features > Banking Features . The field Beneficiary Code appears when the following Transaction Types are selected:

● Electronic Cheque

● Electronic DD/PO

● Inter Bank Transfer

● Same Bank Transfer

Warn on Negative Cash Balance

In practical world it is very important to avoid negative cash balance You can configure Tally.ERP 9 to warn you when cash ledger balance goes negative.

● Go to Gateway of Tally > Accounting Vouchers.

● Set the option Warn on negative cash balance to Yes in F12: Configure screen .

● Accept the screen to save. Or press ctrl+A

For example, let us assume there is a cash balance of Rs.21000 and you need to make a payment of Rs.26000 towards Advertising expenses. This results in a negative cash balance. The Payment entry is displayed as shown:

Tally. ERP 9 warns you with a negative cash warning message and the credit cash balance in RED Colour. This will help you to decide whether to proceed with the entry or not.

Pre-allocate Bills for Payment or Receipt

By enabling this option in F12: Configure , you can pre-allocate the bills before specifying the Ledger amount. This Configuration enables the user to select the bills first before the total amount can be updated in the amount field.

For example, the company pays against the Purchase bills.

● Set Pre-Allocate Bills for Payment/Receipt as Yes .

Now while making the entry immediately after selecting the party the Bill-wise details screen for the party appears.

Here, on selecting Agst Ref the List of Pending Bills for the party are displayed.

Note: : For the Pending Bills table to be displayed the F12 option Show Table of Bill Details for Selection should be set to Yes. If it is set to No then the list of pending bills are not displayed

● After selecting the Bills press Enter to obtain the voucher entry screen:

In the above screen it can be seen that the Bill-wise details are also appearing in the voucher entry screen.

● To obtain this Billwise details, the F12:Configure option Show Bill-wise Details should be set to Yes .

● To obtain the Credit period, the F12:Configure option Expand into multiple lines should be set to Yes .

Recording a Sales Entry/voucher

When a company sells goods on credit or cash, Sales voucher is used to record all the Sales transactions of the company.

● Go to Gateway of Tally > Accounting Vouchers

● Click on F8:Sales on the Button Bar or press F8 .

For example, if you are selling goods to Debtor A for a value of Rs. 10000/-

● Debit Customer’s Account.

● Credit Sales Account.

Recording a Sales Invoice

When a sales transaction is made, a document detailing the transaction (item name, tax, etc) has to be given to the buyer or debtor as proof of purchase by him. This document is called invoice or bill or cash memo. Tally.ERP 9 provides the option of creating Invoices. You can also alter an invoice to change the party details.

Account Invoice

Sales account invoice is generally used by professionals such as doctors and consultants who require to issue an invoice for certain services provided such as consultancy charges, professional fees, etc.

Trading and manufacturing organizations also use the Account Invoice for invoicing service charges.

On the Sales entry screen, click Acct Invoice , which is displayed on the Button Bar on the right-hand side of the screen to display the Sales Account Invoice screen.

Pass a sales account invoice for Service provided to :

Account Invoice mode displays the list of ledger accounts, which can be invoiced as required. This is unlike Item Invoice where Tally. ERP 9 displays the list of stock items.

Item Invoice

Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing organizations commonly use this format.

On the Sales invoice screen, click the button Item Invoice , which is displayed on the Button Bar on the right side of the screen and the Sales Item Invoice appears as shown below:

Item Invoice mode displays the list of stock items, which can be invoiced as required.

Enable or disable item allocation screen in item invoice

If the following inventory features are enabled for the company and used, the item allocation screen will appear in item invoice:

● Godown

● Batches

● Tracking

● Order details

You can disable the features listed above (from F11 > F2: Inventory Features ) if you do not want to view the item allocation screen.

Alter Party details in invoice

● Open the invoice in alteration mode.

● Select the party ledger, and press Enter to view the Party Details screen.

● Press Alt+M and select the required party ledger.

 

Configuring an Invoice

Before creating the Invoice , you can set your Invoice Configurations from F12: configure .

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales or F9: Purchases (As Invoice) .

2. Click F12: Configure .

Sales Invoice Standard Configuration

The first screen of Sales Invoice Standard Configuration screen has the following options:

1. Accept supplementary details: Set this option to Yes to specify the despatch details.  If this option is set to No , Print Default Name and Address of Party will be enabled for configuring.

2. Allow separate buyer and consignee names: Enabling this option will allow entering Consignee details in the invoice.

3. Use common ledger A/c for Item Allocation: Enabling this option allows faster data entry by allocating all the items to a single sales ledger in the invoice.

4. Use defaults for bill allocations: Enabling this option will allocate Bill Numbers automatically as defined in voucher type master in ascending order.

5. User voucher no. as bill ref. no. for bill allocations :  When this option is set to Yes , the voucher number will be taken as the bill reference number during bill allocation.

6. Use Additional Description(s) for item name: Enabling this option will allow specifying of any additional description for item during voucher entry.

7. Use Additional Description(s) for ledger name : Enabling this option will allow specifying of any additional description for ledger during voucher entry.

8. Calculate tax on current sub-total (else calculations are on inventory total only): If this option is enabled, tax will be calculated after considering additional income or expenses.

9. Warn on Negative Stock Balance: If this option is enabled, when there is an insufficient stock during sales entry, a warning message of negative stock with quantity details will be displayed.

Sales Invoice Advanced Configuration

In Sales Invoice Standard Configuration , Press F12 to view Sales Invoice Standard Configuration .

1. Allow income accounts in sales voucher : Enabling this option will allow selecting i ncome ledgers for accounting allocation and also as additional ledger.

2. Consolidate stock items with same rates: Enabling this option will allow consolidating the stock items having same rates in invoice.

3. Show compound unit of items based on rate : Enabling this option will allow displaying the compound unit of item based on the unit provided in the Rate Per column . 

4. Show full details of compound unit : Enabling this option will display full details of compound unit in the Quantity field. 

5. Use pre-closure of order details : Enabling this option will allow pre-closure of orders partially or completely from Stock item Allocation screen.

6. Use defaults for bank allocations : If this option is set to Yes , the Bank Allocations will have default allocations in which, the Transaction type is Cheque , voucher date as Instrument Date. the Cheque Range and Cheque Number will be blank.

7. Show Remarks : When this option is set to Yes , a new field Remarks to enter remarks for the payment will appear in the Bank Allocation screen.

8. Specify export shipping details: Enabling this option will allow entering shipping information in the voucher.

9. Specify marks and nos./container no.: Enabling this option will allow specifying container information for export sales items.

10. Show turnover achieved with Customer: Enabling this option will display the turnover details during entry.

11. Allow modification of ALL fields during entry: Enabling this option will allow modification of all fields in the sales invoice.

Printing a Sales Invoice

 One of the important thing after passing of entry is printing of invoice To print any Invoice/voucher, press ALT+P or click on the button Print . You can configure the voucher type to print automatically after saving the voucher for which, the option Print after saving Voucher must be set to Yes.

Buttons specific to sales invoice printing options

Button	Shortcut Keys	Behavior
L	Alt+L	To select the language in which the Invoice is to be printed.
I	Alt+I	To preview the Invoice
T	Alt+T	To change the Report Titles or to print the default title on the invoice
G	Alt+G	To select the Page range for printing
R	Alt+R	To change the method of printing
F	Alt+F	To change the print format/mode
C	Alt+C	To increase/change the number of copies to print, and also to choose the type of copy to be printed
S	Alt+S	To change/select the Printer

The buttons Pre-Printed and Quick Format changes Plain Paper and Neat Format respectively. These are print specifications that you set. Pre-printed is for pre-printed stationery. Quick Format does not give fonts or other niceties but is ideal for fast printing.

In the  invoice printing configuration, set the print options as desired. You can configure the invoice as per your requirement. The options depend on the various F11: Features and F12: Configure parameters, that have been set for your company and for the voucher either by you or by the administrator

Voucher Entry Configuration- Allow Income Accounts in Sales Vouchers

Generally, all the Sales made by the Company are recorded using Sales Voucher.  In certain cases, the user would like to record the Income ledgers also in the Sales Voucher, the same is possible by enabling the option Allow Income Accounts in Sales Vouchers in F12 configuration in voucher mode.

For Example, pass a sales entry towards Professional Income from Customer A.

1. Debit Customer A Account.

2. Credit Professional Income Account grouped under Indirect Income.

On enabling allow income accounts in sales vouchers the income ledger will be available for selection in voucher mode for credit in the second line.

In invoice mode the income ledger  will be available for Accounting allocation and also as additional ledger

Recording a Journal Entry

Journal Vouchers are used to adjust the debit and credit amounts without involving the cash or bank accounts. Hence, they are referred to as adjustment entries. In short any entry which cannot be passed in contra sales purchase receipt payment are passed in journal . Even all above entries can be passed in journal entry . journal entry  is like general voucher in which all entries can be passed .provided F12 config  Allow cash Accounts in journal to yes

● Go to Gateway of Tally > Accounting Vouchers.

● Click on F7: Journal on the Button Bar or press F7 .

For example, there may be entries made for interest accrued or interest due. If you have to receive Interest from a party, the same can be entered using Journal Voucher.

● Debit the Party.

● Credit the Interest Receivable Account.

The Journal entry is displayed as shown:

 

Voucher Entry Configuration - Allow Cash Accounts in Journals

Journals are adjustment entries, which do not involve Cash account and Bank account. However in exceptional cases where the user would like to account Journal entries involving Cash/Bank Account, Tally ERP 9 has the flexibility of passing such entries by enabling the option under F12 configuration.

To enable Cash Accounts in Journal voucher

● Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry Configuration).

To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal.

2. Press the spacebar at the Debit or Credit field. The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown:

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Printing Payment, Receipt, and Journal Vouchers based on Due Date

The facility to print due date or credit days is provided for payment, receipt and journal voucher types.

In the transactions recorded for purchase and sales, the due date/credit days for paying or receiving the amount will be provided in the bill-wise details screen displayed for the party ledger selected while invoicing.

While printing the payment, receipt and journal voucher, the due date specified in the corresponding purchase or sales transaction will get printed, as per the references selected in the party ledgers. To print these details, the following options need to be enabled in the Voucher Printing Configuration screen of Payment , Receipt and Journal vouchers.

● Print Bill-wise Details : This is provided to print the type of reference that is chosen in the payment, receipt and journal voucher. The type of references that gets captured here are:

o Advance

o Agst Ref

o New Ref

o On Account

● Print Bill Due Dates also : This is provided to print the due date specified in the bill-wise details screen of the party ledger selected in purchase, sale or journal voucher. The type of references for which due date will be displayed are:

o Advance

o Agst Ref

o New Ref

● Print Due Date with Credit Days : This is provided to print credit days along with due date depending on the type of reference chosen while recording the voucher. The type of references for which credit days will be displayed are:

o Advance

o Agst Ref

o New Ref

The due date of payment and receipt voucher can be printed on recording the transaction in single entry and double entry modes.

Printing Due Date

Let us consider an example of a printing due date of payment made against a purchase invoice.

In the Bill-wise Details screen of Purchase invoice, enter the Due Date or Credit Days as shown:

In the payment voucher, click Alt+P : Print button followed by F12 : Configure button to configure the options to display due date in the printed payment voucher.

In the Payment Printing Configuration screen, set the options as shown and accept the screen:

The printed voucher with due date appears as shown:

Printing Due Date and Credit Period

Let us consider an example of a printing due date and credit days of amount received as advance.

In the Bill-wise Details screen of Sales invoice, the Due Date or Credit Days is mentioned as shown:

Receipt Voucher for the Advance amount

Record a receipt voucher for receipt of advance amount by providing the bill-wise details as shown:

In the receipt voucher, click Alt+P : Print button followed by F12 : Configure button to configure the options to display due date in the printed receipt voucher.

Recording Debit Note

Debit Note is a document issued to a party stating that you are debiting their Account in your Books of Accounts for the stated reason or vise versa.   It is commonly used in case of Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the party etc.

Debit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11:  Accounting or Inventory features .

● To use it in Voucher mode you need to enable the feature in F11 :Accounting Features -  Use debit and credit notes .

● To make the entry in Invoice mode enable the option F11: Accounting Features -  Record debit notes in invoice mode .

To go to Debit Note Entry Screen,

● Go to Gateway of Tally > Accounting Vouchers.

● Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V .

Pass an entry for the goods purchased returned to Supplier :

Recording Credit Note

Credit Note is a document issued to a party stating that you are crediting their Account in your Books of Accounts for the stated reason or vise versa.  It is commonly used in case of Sales Returns, Escalation/De-escalation in price etc.

A Credit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11:  Accounting or Inventory features .

● To use it in Voucher mode you need to enable the feature in F11: Accounting Features -  Use debit and credit notes .

● To make the entry in Invoice mode enable the option F11: Accounting Features -  Record credit notes in invoice mode .

To go to Credit Note Entry Screen

1. Go to Gateway of Tally > Accounting Vouchers.

2. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.

You can toggle between voucher and Invoice mode by clicking Ctrl+V .

Pass an entry for goods sold returned from Customer :

Reversing Journals

Reversing Journals are special journals that are automatically reversed after a specified date. They exist only till that date and are effective only when they are included in reports.  These are used in interim reporting in the course of the financial year where accruals are to be reported. These accruals are usually short term and are cleared in the subsequent period. However, to get a proper perspective, decision makers require the reports with full impact of all aspects and transactions.

1. Go to Gateway of Tally.

2. Select F11: F1: Accounting Feature.

3. Set Use Reversing Journals & Optional Vouchers? to Yes.

4. Accept the screen to save.

You may use reversion journal for accounting for or providing for depreciation. Since, depreciation is usually provided during at the end of the year, using the Reversing journal you may include them for monthly reporting or a specific period to give more accurate status or position.

For example, on 30th June you want to view the Balance Sheet but June month’s rent is not been paid. You may create a Scenario (refer Scenario Management for more information) and pass a Reversing Journal entry to view the reports which will be effective up to the applicable date. When you view the Balance Sheet, Tally.ERP 9 displays the report with the reversing journals included. The voucher affects the report only for that day, 30th June.

Applicable up to

The reversing Journal is available for inclusion in a scenario report till this date. The Reversing Journal can be created as of a particular date and made Applicable up to a different date.

Reversing Journal Register

All vouchers are maintained in a Reversing Journal Register. These are not posted to any books of accounts and cannot be included in regular reports. They can only be seen using a scenario.

Go to Gateway of Tally > Display > Exception Reports > Reversing Journals

Memorandum Voucher

This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts. In other words, Tally.ERP 9 does not post these entries to ledgers, but stores them in a separate Memorandum Register.  You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the entry into your books.

Some of the uses of Memorandum Vouchers are:

Making suspense payments

Consider that a company gives its employees cash to buy office supplies, the exact nature and cost of which are unknown. For this transaction you can enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash.

However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when the details are known.

For example, the Company pays its employee Rs. 1000 as petty cash advance for Office Expenses.

The following entry has to be passed.

To use Memorandum voucher,

1. Enable the following option from F11: Accounting Features

2. Use Reversing Journals & Optional Vouchers.

3. Go to Gateway of Tally > Accounting Vouchers > Select Ctrl+F10: Memos from the Button Bar or click Ctrl+F10 .

4. Debit Office Supplies Account.

5. Credit Cash Account.

Vouchers not verified at the time of entry

If there is no clarity with the details of a voucher you are entering, you can enter it as a Memo voucher and amend it later when the details are available.

Items given for approval

Generally completed sales are entered into books. In case items are given on approval, use a Memo voucher to track and convert it into a proper Sales voucher. You can cancel/delete the memo voucher if the sale is not made.

Memorandum Voucher Register

To view all the memorandum vouchers,

Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers.

Memorandum voucher can also be viewed from day book

You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into your books. Use Scenarios to see the effect of Memo entries on reports and statements.

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