Scenario management is a management tool that enables projecting accounts and inventory related information, by selectively including certain types of vouchers without affecting the source data. It is useful in generating provisional reports, where entries are not actually made in the main books. It is also a useful forecasting tool i.e. you can forecast the expenses using provisional Vouchers and include them in your reports.
The vouchers that are used in Scenario Management are:
● Optional Vouchers
● Memorandum Vouchers
● Reversing Journals
This section shows you how to use the above-mentioned vouchers in Reports. You can create a number of scenarios each including and/or excluding one or more types of voucher entry.
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Use Reversing Journals in Scenarios
By creating a scenario in TallyERP 9, you will choose to use certain voucher types and/or exclude certain voucher types to arrive at realistic forecasting. Multiple scenarios can be created enabling the business to make informed decisions. You will use reversing journals to record transactions that are automatically reversed after a specified date.
1. Go to F11: Features > F1: Accounting Features .
2. S et Use Reversing Journals & Optional Vouchers? to Yes .
3. Press Ctrl+A to save.
1. Go to Gateway of Tally > Accounts Info. > Scenario > Create .
2. Enter a suitable scenario Name .
3. Enable the option Include actuals .
4. Set Exclude Forex Gains/Losses Calculations to Yes if you do not want the Unadjusted Forex Gain/Loss element to reflect in the scenario.
5. Set Exclude Inventory Tracking Calculations to Yes if you do not want the Sales/Purchase Bills Pending element to reflect in the scenario.
The Scenario Creation screen appears as shown below:
6. Select the vouchers to Include . These vouchers will affect the scenario created.
7. Select the vouchers to Exclude . These vouchers will not affect the scenario created.
8. Press Enter to save the scenario.
When you don't want a voucher type to affect the scenario anymore, you can modify the existing scenario and remove the voucher type from the Include list.
1. Go to Gateway of Tally > Accounts Info . > Scenario > Alter .
2. Select the scenario to alter from the List of Scenarios .
3. Modify the details as required.
4. Press Enter to save.
Reversing Journals are special journals that are automatically reversed after a specified date. hey 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.
For example, you can account for or providing for depreciation. Since, provision for depreciation is made at the end of the year, you can create scenarios to include them for monthly reporting or a specific period to give more accurate status or position.
1. Go to F11: Features > F1: Accounting Features .
2. S et Use Reversing Journals & Optional Vouchers? to Yes .
3. G o to Gateway of Tally > Accounting Vouchers > F10: Reversing Journal .
4. D ebit Depreciation and enter the amount .
5. Credit Provision for Depreciation.
6. Enter the date until which t he Reversing Journal is available for inclusion in a scenario in the field Applicable Upto .
7. Enter Narration , if required.
8. Press Enter to save the transaction.
You can use scenarios in statements (not registers) to compare the actuals with the provisional details by using the N : New Column button.
1. From Gateway of Tally , click Balance Sheet .
2. Click N : New Column .
3. Select the scenario required. The Balance Sheet with the scenario appears as shown below:
Note: The Provision for Depreciation figures in both the columns. The actual column shows 18250 while the Provisional column shows 33250. This is on account of the reversing journal entry in the Scenario.
