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Accounting Entry

As per the accounting practice of journaling, you can record all transactions using Journal Vouchers in TallyPrime. However, there are specialised accounting voucher types for different types of transactions like payments, receipts, sales, purchase, contra, debit note, credit note and so on to ease data entry. Once you know how to enter a transaction in TallyPrime, you can enter any transaction in a similar way. Voucher types in TallyPrime can be categorised as Journal, Purchase, Sales, Payment, Receipt, Contra, Inventory Vouchers, Order Vouchers and Non-Accounting Vouchers. In this topic, we will understand how to record a transaction in TallyPrime and learn more about the voucher types that TallyPrime provides.

Apart from these 24 voucher types, you can also create your own under these for easy identification. For example, you can create Cash Sales under Sales voucher type so that you can identify and sequentially number all your cash sales.

For faster data entry operation you can also use voucher class in TallyPrime.

Record Transactions

Recording transactions in TallyPrime follow a simple pattern. You can record a transaction with the following steps. A payment transaction for expenses is used for illustration.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, Alt+G (Go to) > Create Voucher > press F5 (Payment).
  2. If you want to change the voucher date, press F2 (Date).
    When you press F2 to change the date, the date shown is for the subsequent day of the current date. This done to avoid manual entry of date for the next day as the immediately next day is the most common business day. You can however enter any date, even backward dates.
  3. Select the mode of payment.
  4. In Account field, select Cash ledger, which is already available or the Bank ledger. To learn more about Bank payment refer to Banking Utilities in TallyPrime.
    When you create a Company in TallyPrime, the system creates two ledgers by default – Cash and Profit & Loss A/c.
  5. Select the ledger for which you are making the payment and specify the amount. For example, Rent.
    1. Under Particulars, you need to select expense ledger for which you are making this payment.
    2. If expense ledger is not available, press Alt+C to create Ledger on fly. In Ledger Creation (Secondary) screen, give ledger name as per your expense head and select Indirect Expense group in the Under field.
      In TallyPrime, you will find patterns to do certain tasks, and these patterns are consistent across the product. For example, when recording a transaction, you press Alt+C to create a ledger, without leaving the voucher. This pattern works across the product. Anywhere in the product, on a field for ledger selection, press Alt+C to create it.
    3. In Amount, specify the expense amount.
  6. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

    This is the process to record payment transactions in TallyPrime.

Accounting with Journal Voucher

If you are accounts savvy, you can record the same payment transaction using a journal voucher in TallyPrime. Use the following steps for the same.

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, Alt+G (Go to) > Create Voucher > press F7 (Journal).
  2. If you want to change the voucher date, press F2 (Date).
  3. Select By/Dr (Debit) side of the transaction.
    1. In By, select the expense ledger. For example, Rent.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) >Create Master type or select Ledger > and press Enter.
      By default, in a journal voucher, you need to first specify the By (debit side).
    2. In Debit, specify the rent amount.
  4. Select the To/Cr (Credit) side of the transaction.
    1. In To, select the payment mode. For example, Cash.
      To select Cash, an F12 setting for JV is needed.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G(Go To) >Create Master > type or select Ledger > and press Enter.
    2. In Credit, specify the amount.
      If the amount is not equivalent to the debit amount, you need to select another Credit ledger.
  5. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.
    Though you can use a journal voucher in TallyPrime to record a payment transaction, the specialised voucher type Payment helps ease the data entry.

In a similar manner, you can use a journal voucher to record any type of accounting transaction. However, TallyPrime has specialised voucher types for specific business transactions like purchase, debit note, sales, credit note, payment, receipt, contra for error-free and easy data entry.

Adjustment Entries Using Journal Vouchers

Though JV can be used for any kind of accounting transaction, it needs good knowledge about accounting principals. JVs are mostly used for adjustment entries. Adjustment entries for finalisation of books.

Adjusting Forex Gain or Loss Appearing in the Balance Sheet

The unadjusted Forex gain or loss balance will arise due to the exchange rate fluctuations. As per the Accounting Standard 11: The effects of changes in Foreign Exchange Rates, the company has to account the Forex gain/loss which consists of both Realised and Unrealised forex gain/loss into their Final Reports.

  1. Create a ledger as Forex gain or loss under Indirect Expenses or Indirect Income to transfer the amount from Balance Sheet to Profit and Loss Account by using Voucher Class.
  2. Create a Voucher Class.
  3. Press Alt+G (Go To) > Alter Master > type or select Voucher Type> select Journal and press Enter.
  4. Specify a Voucher Class name. For example, Forex Class.
  5. Set the option Use Class for Forex Gain/Loss Adjustments to Yes.
  6. Select Forex gain or loss ledger, as shown below.
  7. Accept the screen. As always, you can press Ctrl+Ato save

Record a journal voucher

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > type or select Create Voucher > press F7 (Journal).
  2. Select the Voucher Class (Forex Class), Tally will display all the ledgers for which you need to adjust the Forex Gain or Loss.
  3. Select the required ledger and accept the voucher. As always, you can press Ctrl+A to save.


    The adjusted amount will not be displayed in the Balance sheet as it gets transferred to Profit and Loss Account.
    Note: If the currency of the ledger and the base currency is the same, bill wise details will appear only for those masters while adjusting the Forex Gain or Loss.

Journal Vouchers in Day Book

To view entered Journal vouchers, you can go to Day Book. Day Book is a report to view transactions recorded in the Day.

  1. Gateway of Tally > Display More Reports > Day Book.
    Alternatively, Alt+G (Go To) > type or select Day Book > and press Enter.
  2. If you want to change the date, press F2 (Period).
  3. You can see Journal vouchers along with all other vouchers recorded in the day here.
  4. If you want to see only particular voucher types press F4 (Voucher Type) and select Journal voucher type to view.
    Note: In Day Book you can also see transactions for a date range by pressing Alt+F2 (Period) and mention From and To date to view transactions of that period.

  5. Ctrl+B (Basis of Values): You can configure the values in your report for that instance, based on different business needs.
    In Day Book, you can display the Forex transactions only. Press Ctrl+B (Basis of Values) > set Show Forex transactions only as Yes. Press Esc to view the default values.
    Similarly, you can select different Type of Voucher entries. Press Ctrl+B (Basis of Values) > Type of Voucher entries > select Accounting Entries Only. Press Esc to view the default values.
  6. Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
    To view the Post-Dated Bank Transactions for Day Book, press Ctrl+H (Change View) > type or select Post-Dated Bank Transactions > press Enter. Press Esc to view the default report.
  7. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
    To view the Post-Dated Voucher for Day Book, press Ctrl+J (Exception Reports) > type or select Post-Dated Voucher > and press Enter. Press Esc to view the default report.
  8. You can also use Alt+F12 (Range) function to filter for journal vouchers in Day Book. The range filters selected to view only journal vouchers appears as shown.

Journal Register

Journal register displays all the Journal vouchers recorded for each month. You can view this report in browser.

  1. Gateway of Tally > Display More Reports > Account Books > Journal Register.
    Alternatively, press Alt+G(Go To) > type or select Journal Register > and press Enter.
    The Journal Register appears as shown below:
  2. Select the required month and press Enter.
  3. Press F8 (Columnar) and set the options as required, to view the journal columnar register. Set the options Show voucher reference number and Show voucher reference date as Yes to view these details in separate columns.
    Accept the screen. As always, you can press Ctrl+A to save.
  4. The columnar Voucher Register of journal vouchers appears as shown:
  5. To change voucher type press F4 (Voucher Type) at the voucher register screen and select the required voucher type.

Purchase

TallyPrime provides specialised accounting voucher types for purchase-related transactions:

Apart from these, there are specialised voucher types for the inventory transactions – Receipt Note and Rejection Out to record the inventory changes that are part of the purchase cycle. One more voucher type is involved in purchase cycle – Purchase orders.

To know more about complete purchase cycle click Purchase Process

Sales

TallyPrime provides specialised accounting voucher types for sales-related transactions:

Apart from these, there are specialised voucher types for the inventory transactions – Delivery Note and Rejection In to record the inventory changes that are part of the sales cycle. One more voucher type is involved in the sales cycle – Sales order

Payments

Recording Payment transactions in TallyPrime follow a simple pattern. You can record a transaction with the following steps. A payment transaction for Rent expenses is used for illustration.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, Alt+G (Go to) > Create Voucher > press F5 (Payment).
  2. If you want to change the voucher date, press F2 (Date).
  3. Select the mode of payment.
  4. In Account, select Cash, which is already available.
    When you create a Company in TallyPrime, the system creates two ledgers by default – Cash and Profit & Loss A/c.
  5. Select the ledger for which you are making the payment and specify the amount. For example, Rent.
  6. Under Particulars, you need to select expense ledger for which you are making this payment.
    In case the ledger is not available, press Alt+C to create Ledger on the fly. In Ledger Creation (Secondary) screen, give ledger name Rent and select the group Indirect Expense in the Under field.
    In TallyPrime, you will find patterns to do certain tasks, and these patterns are consistent across the product. For example, when recording a transaction, you can press Alt+C to create a ledger, without leaving the voucher. This pattern works across the product. Anywhere in the product, in a ledger selection field, press Alt+C to create it.
  7. Under Amount, specify the expense amount.
  8. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Payment for purchases can also be recorded similarly. For detail explanation on how to record payment for purchases please refer to Payment for Purchase <hyperlink>

As in the case of other voucher types, you can mark a payment voucher as optional and post-dated.

For more details, refer to Payments and Receipts.

Receipts

Recording Payment transactions in TallyPrime follow a simple pattern. You can record a transaction with the following steps. A receipt transaction for Commission Received income is used for illustration.

  1. Gateway of Tally > Vouchers > press F6 (Receipt).
    Alternatively, Alt+G (Go to) > Create Voucher > press F6 (Receipt).
  2. If you want to change the voucher date, press F2 (Date).
  3. Select the mode of receipt.
  4. In Account field, select Cash, which is already available.
    When you create a Company in TallyPrime, the system creates two ledgers by default – Cash and Profit & Loss A/c.
  5. Select the ledger for which you are making the receipt and specify the amount. For example, Commission Received.
  6. Under Particulars, select income ledger for which you are making this receipt.
    In case the ledger is not available, press Alt+C to create Ledger on fly. In Ledger Creation (Secondary) screen, give ledger name Commission Received and select Indirect Income in the Under field.
    In TallyPrime, you will find patterns to do certain tasks, and these patterns are consistent across the product. For example, when recording a transaction, press Alt+C to create a ledger, without leaving the voucher. This pattern works across the product. Anywhere in the product, in ledger selection field, press Alt+C to create it.
  7. Under Amount, specify the commission amount.
  8. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.
    Receipt against sales can also be recorded similarly. For detail explanation on how to record receipts against sales please refer to Receipt of Money.
    As in the case of other voucher types, you can mark a receipt voucher as optional and post-dated.
    For more details, refer to Payments and Receipts.

Contra

Fund transfers within different accounts of your company, such as transfer from one bank account to another, deposit of cash to bank account, cash withdrawals from ATMs or, withdrawals from banks using Cheque or DD, can be recorded using Contra Voucher in TallyPrime. Such fund transfers from one account to the other – say Cash A/c to Bank A/c or vice versa – appear on the same side of the company’s balance sheet, and do not impact your company books. This does not include transferring money to any third-party account as part of a payment. Keeping a record of the contra entries helps to track internal fund transfers done month-wise or voucher-wise, for different business needs. You can get a periodic view of the contra entries to have a better understanding of the fund transfers from one account to the other using Contra Register in TallyPrime.

In this section

Record Transfer of Funds Within Your Accounts

When you record transfer of money to the bank account, TallyPrime internally keeps a record of such deposits. You can print these deposit slips, as needed.

  • Gateway of Tally > Vouchers > press F4 (Contra).
    Alternatively, press Alt+G(Go To) > Create Voucher > press F4 (Contra).

You can use single entry or double entry mode of data entry to record contra vouchers. Single entry mode helps you in faster data entry and allows multiple credits against a single debit. The double entry mode gives you the flexibility of multiple debits and multiple credits in a single transaction.

Record Contra Voucher in Single-Entry Mode

  1. Debit the destination account and credit the source account. For example, if you are withdrawing cash from your bank’s ATM, the Cash ledger should be debited and bank ledger should be credited.
  2. Select the ledger account that you want to debit in the Account field.
  3. Under Particulars, select the account that you want to credit and enter the amount. You can deposit money from more than one account to a single destination account.
    As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master> type or select Ledger> and press Enter.
  4. Specify the bank, cheque, or cash details, as required.
    • For banks and cheques, you can specify the details in the Bank Allocations screen.
    • For cash, you can specify the denomination details in the Bank Allocations > Cash Denominations screen.
      A sample image is shown below:

      What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.
  5. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Record Contra Voucher in Double-Entry Mode

  1. Press Ctrl+H (Change Mode) to select the Double Entry mode.
  2. Debit the destination account and credit the source account. For example, if you are withdrawing cash from your bank’s ATM, the cash ledger should be debited and bank ledger should be credited.
  3. Under Particulars in the To field, select the source ledger account that you want to Credit.
  4. In the By field, select the destination ledger account that you want to Debit.
    As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master> type or select Ledger> and press Enter.
    A sample image is shown below:

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.
  5. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.
    In case you have received payment in a different currency, say in Dollars, and now you want to deposit this amount to your company’s bank account. You can create currency master and record the foreign currency amount by prefixing the currency symbol in the Amount field.
    As in other vouchers, you can define the current rates of exchange if needed while recording the Contra voucher.
    As in any other vouchers, you can create the number series for the contra vouchers, as you need for your reference.
    Note: If you deposit cheques in the bank for internal money transfer and collect the deposit slip, you can track such deposit slips in TallyPrime and print them when needed.
    As in the case of other voucher types, you can mark a contra voucher as optional and post-dated.
  6. Print Cheque after saving voucher.

Contra Vouchers in Day Book

To view entered Journal vouchers, you can go to Day Book. Day Book is a report to view transactions recorded in the Day.

  1. Gateway of Tally > Day Book.
    Alternatively, press Alt+G (Go To) > type or select Day Book > and press Enter.
  2. If you want to change the date, press F2 (Period).
  3. You can see Contra vouchers along with all other vouchers recorded in the day here.
  4. If you want to see only particular voucher types press F4 (Voucher Type) and select Contra voucher type to view.
    Note: In Day Book you can also see transactions for a date range by pressing Alt+F2 (Period) and mention From and To date to view transactions of that period.

  5. Ctrl+B (Basis of Values): You can configure the values in your report for that instance, based on different business needs.
    In Day Book, you can display the Forex transactions only. Press Ctrl+B (Basis of Values) > set Show Forex transactions only as Yes. Press Esc to view the default values.
    Similarly, you can select different Type of Voucher entries. Press Ctrl+B (Basis of Values) > Type of Voucher entries > select Accounting Entries Only. Press Esc to view the default values.
  6. Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
    To view the Post-Dated Bank Transactions for Day Book, press Ctrl+H (Change View) > type or select Post-Dated Bank Transactions > press Enter. Press Esc to view the default report.
  7. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
    To view the Post-Dated Voucher for Day Book, press Ctrl+J (Exception Reports) > type or select Post-Dated Voucher > and press Enter. Press Esc to view the default report.
  8. You can also use Alt+F12 (Range) function to filter for Contra vouchers in Day Book. The range filters selected to view only Contra vouchers appears as shown.

Contra Register

If you record the transfer of funds between your company accounts, you will need to keep a track of all such transfers periodically. By default, Contra Register shows the number of contra vouchers recorded month-wise.

You can alter details.

  1. Gateway of Tally > Display More Reports > Account Books > Contra Register.
    Alternatively, press Alt+G (Go To) > type or select Contra Register > and press Enter.
  2. Press F6 (Quarterly) to get a quarterly view of the contra vouchers.
  3. Press Enter on the selected period to view the Voucher Register report. All the contra vouchers recorded in that period are displayed in this report.

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features. Alternatively, press Ctrl+I (More Details) to enter any of the values without activating the options in F12 (Configure).
  4. Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
    To view the Monthly basis, press Ctrl+H (Change View) > type or select Monthly > press Enter. Press Esc to view the default report.
    Similarly, you can select Daily, Weekly wise view of report.
  5. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
    To view the Memorandum Register, press Ctrl+J (Exception Reports) > type or select Memorandum Register> and press Enter. Press Esc to view the default report.
  6. You can also use Alt+F12 (Range) function to filter for Contra register. The range filters selected to view only contra register vouchers appears as shown.

Other Reports Showing Contra Entries

Data Representation in Reports

As in the case of any other voucher, you can do the following from any voucher report (Day Book, Ledger Vouchers, Sales Register, and so on).

  • Press Enter on a voucher for alteration.
  • Press Alt+Enter to open a voucher in display mode.
  • Select a voucher and press Alt+2 to duplicate.
  • Select a voucher and press Alt+A to add a voucher on the same date as the last entered voucher for the day.
  • Select a voucher and press Alt+I to insert a voucher above the selected voucher.
  • Select a voucher and press Alt+D to delete a voucher. You can select multiple vouchers by using arrow keys to navigate and pressing Space Bar for selection.
  • Select a voucher and press Alt+X to cancel.

Memorandum Vouchers

Memorandum Vouchers are those vouchers which do not impact your books of accounts.

Used when the actual purpose of an expense is not sure and can be converted to any voucher type. Will not impact the accounts unless converted to a normal voucher type. The impact of a memorandum voucher can be seen by creating scenarios.

In this section

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.

  1. Gateway of Tally > Vouchers > press F10 (Other vouchers) > type or select Memorandum Voucher.
    Alternatively Alt+G (Go to) > Create Vouchers > press F10 (Other vouchers) > type or select Memorandum Voucher.
    In case the voucher is inactive, you will be prompted to activate the Memorandum voucher type. Select Yes or press Yes to proceed.
  2. If you want to change the voucher date, press F2 (Date).
  3. Select the mode of payment.
    • Debit Office Supplies Account.
    • Credit Cash Account.
  4. Accept the screen. As always, you can press Ctrl+A to save.

In TallyPrime, you will find patterns to do certain tasks, and these patterns are consistent across the product. For example, when recording a transaction, press Alt+C to create a ledger, without leaving the voucher. This pattern works across the product. Anywhere in the product, in ledger selection field, press Alt+C to create it.

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

  1. Gateway of Tally > Display More Reports > Exception Reports > Memorandum Register.
    Alternatively, press Alt+G (Go To) > type or select Memorandum Register > and press Enter.

    Note: You can also view memorandum vouchers from the 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.

Memorandum Vouchers in Day Book

To view entered Memorandum vouchers, you can go to Day Book. Day Book is a report to view transactions recorded in the Day.

  1. Gateway of Tally > Day Book.
    Alternatively, press Alt+G (Go To) > type or select Day Book> and press Enter.
  2. If you want to change the date, press F2 (Period).
    You can see Memorandum vouchers along with all other vouchers recorded in the day here.
  3. If you want to see only particular voucher types press F4 (Voucher Type) and select Memorandum voucher type to view.

    Note: In Day Book you can also see transactions for a date range by pressing Alt+F2 (Period) and mention From and To date to view transactions of that period.

  4. Ctrl+B (Basis of Values): You can configure the values in your report for that instance, based on different business needs.
    • In Day Book, you can display the Forex transactions only. Press Ctrl+B (Basis of Values) > set Show Forex transactions only as Yes. Press Esc to view the default values.
  5. Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
    • To view the Post-Dated Bank Transactions for Day Book, press Ctrl+H (Change View) > type or select Post-Dated Bank Transactions > press Enter. Press Esc to view the default report.
  6. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
    • To view the Post-Dated Voucher for Day Book, press Ctrl+J (Exception Reports) > type or select Post-Dated Voucher > and press Enter. Press Esc to view the default report.
  7. You can also use Alt+F12 (Range) function to filter for Memorandum vouchers in Day Book. The range filters selected to view only Memorandum vouchers appears as shown.

Exception Reports for Memorandum Vouchers

  • Gateway of Tally > Display More Reports > Exception Reports > Memorandum Register.
    Alternatively, press Alt+G (Go To) > type or select Memorandum Register > and press Enter.


    You can also view memorandum vouchers from the Day Book. You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into your books.
    Note: Use Scenarios to see the effect of Memorandum entries on reports and statements.

Creation of Scenarios for Memorandum Vouchers

Scenario management is a management tool that enables projecting accounts and inventory related information by including certain types of Vouchers without affecting the source data. It is also a useful forecasting tool i.e. you can forecast the expenses using provisional vouchers such as Memorandum Voucher.

In this section

Create a Scenario

  1. Gateway of Tally > Create> Scenario.
    Alternatively, press Alt+G (Go To) > Create Master > type or select Scenario> and press Enter.
  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.
  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. Accept the screen. As always, you can press Ctrl+A to save.

Use Memorandum Voucher in Scenarios

Recording transactions in TallyPrime follow a simple pattern. You can record a transaction with the following steps. A Company pays its employee Rs. 37000 as cash advance for Office Expenses is used for illustration.

  1. Gateway of Tally > Vouchers > press F10 (Other vouchers) > type or select Memorandum Voucher.
    Alternatively Alt+G (Go to) > Create Voucher> press F10 (Other vouchers) > type or select Memorandum Voucher.
    In case the voucher is inactive, you will be prompted to activate the Memorandum voucher type. Select Yes or press Y to proceed.
  2. If you want to change the voucher date, press F2 (Date).
  3. Select By/Dr (Debit) side of the transaction.
    1. In By, select the office supplies Account.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G(Go To) >Create Master> type or select Ledger> and press Enter.
    2. In Debit, specify the amount.
  4. Select the To/Cr (Credit) side of the transaction.
    1. In To, select the payment mode. For example, Cash.
    2. In Credit, specify the amount.
      If the amount is not equivalent to the debit amount, you need to select another Credit ledger.
    3. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Use Scenarios in Reports

You can use scenarios in statements (not registers) to compare the actuals with the provisional details by using the Alt+C (New Column) button.

  1. Gateway of Tally > Balance Sheet.
    Alternatively, press Alt+G (Go To) > type or select Balance Sheet > and press Enter.
  2. Press Alt+C (New Column).
  3. Select the scenario required. The Balance Sheet with the scenario appears as shown below:

Reversing Journals

Reversing Journals are those vouchers which do not impact your books of accounts.

Similar to the optional voucher. Has an “up to” date. To check the impact on account for certain expenses until the actual voucher is passed. The impact of a Reversing Journal can be seen by creating scenarios.

TallyPrime follow a simple pattern to record the transactions. You can record a transaction with the following steps.

Illustration, On 30th June you want to view the Balance Sheet as of today but June salaries are not paid until the first week of July. Thus, there is a large liability, which would not be reflected in the Balance Sheet. To overcome this, you enter a Reversing Journal Voucher dated 30th June, which would look like this:

  1. Gateway of Tally > Vouchers > press F10 (Other vouchers) > type or select Reversing Journals.
    Alternatively, Alt+G (Go to) > Create Voucher > press F10 (Other vouchers) > type or select Reversing Journal.
    In case the voucher is inactive, you will be prompted to activate the Reversing Journal voucher type. Select Yes or press Y to proceed.
  2. If you want to change the voucher date, press F2 (Date).
  3. Select By/Dr (Debit) side of the transaction.
    1. In By, select the Salary Account.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G(Go To) >Create Master > type or select Ledger> and press Enter.
    2. In Debit, specify the amount.
  4. Select the To/Cr (Credit) side of the transaction.
    1. In To, select the Provision for Salary Account.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G(Go To) >Create Master> type or select Ledger> and press Enter.
    2. In Credit, specify the amount.
  5. In the Applicable Upto field specify the date.
    This is the date up to which the Reversing Journal is available for inclusion in a scenario report.
  6. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Applicable up to

This is the date up to which the Reversing Journal is available for inclusion in a scenario report. The Reversing Journal can be created as of a particular date and made Applicable up to a different date. For example the depreciation entry could be dated October 1, 2008 and applicable up to October 31, 2008. The journal will be available for inclusion in a scenario for any day from October 1, 2008 till October 31, 2008. It will not exist before 1st Oct and will be reversed automatically after 31st Oct and consequently unavailable.

Reversing Journals in Day Book

To view entered Reversing Journals vouchers, you can go to Day Book. Day Book is a report to view transactions recorded in the Day.

  1. Gateway of Tally > Day Book.
    Alternatively, Alt+G(Go To) > type or select Day Book> and press Enter.
  2. If you want to change the date, press F2 (Period).
    You can see Reversing Journals vouchers along with all other vouchers recorded in the day here.
  3. If you want to see only particular voucher types press F4 ( Voucher Type) and select Reversing Journals voucher type to view.
    Note: In Day Book you can also see transactions for a date range by pressing Alt+F2 (Period) and mention From and To date to view transactions of that period.
    
  4. Ctrl+B (Basis of Values): You can configure the values in your report for that instance, based on different business needs.
    In Day Book, you can display the Forex transactions only. Press Ctrl+B (Basis of Values) > set Show Forex transactions only as Yes. Press Esc to view the default values.

  5. Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
    To view the Post-Dated Bank Transactions for Day Book, press Ctrl+H (Change View) > type or select Post-Dated Bank Transactions > press Enter. Press Esc to view the default report.

  6. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report.
    To view the Post-Dated Voucher for Day Book, press Ctrl+J (Exception Reports) > type or select Post-Dated Voucher > and press Enter. Press Esc to view the default report.

  7. You can also use Alt+F12 (Range) function to filter for Reversing journal vouchers in Day Book. The range filters selected to view only Reversing journal vouchers appears as shown.

Exception Reports for Reversing Journal

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. You can view or alter Reversing Journals from the register.

  1. Gateway of Tally > Display More Reports > Exception Reports > Reversing Journal Register.
    Alternatively, Alt+G (Go To) > type or select Reversing Journal Register > and press Enter.
  2. Select a month to view the Voucher Register report.

Creation of Scenarios for Reversing Journal

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.

In this section:

Create a Scenario

  1. Gateway of Tally > Create > type or select Scenario.
    Alternatively, Alt+G (Go To) > Create Master > type or select Scenario > and press Enter.
  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.
    .
  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. Accept the screen. As always, you can press Ctrl+A to save.

Use Reversing Journal Voucher in Scenarios

Recording transactions in TallyPrime follow a simple pattern. You can record a transaction with the following steps. You can account for or providing for depreciation. Since, provision for depreciation is made at the end of the year, you cancreate scenarios to include them for monthly reporting or a specific period to give more accurate status or position is used for illustration.

  1. Gateway of Tally > Vouchers > press F10 (Other vouchers) > type or select Reversing Journal.
    Alternatively, Alt+G (Go to) > Create Voucher > press F10 (Other vouchers) > type or select Reversing Journal.
    In case the voucher is inactive, you will be prompted to activate the Reversing Journal voucher type. Select Yes or press Y to proceed.
    • If you want to change the voucher date, press F2 (Date).
  2. Select By/Dr (Debit) side of the transaction.
    1. In By, select the Depreciation.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master> type or select Ledger> and press Enter.
    2. In Debit, specify the amount.
  3. Select the To/Cr (Credit) side of the transaction.
    1. In To, select the Provision for Depreciation.
      As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G(Go To) >Create Master > type or select Ledger> and press Enter.
    2. In Credit, specify the amount.
      If the amount is not equivalent to the debit amount, you need to select another Credit ledger.
  4. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Use Scenarios in Reports

You can use scenarios in statements (not registers) to compare the actuals with the provisional details by using the Alt+C (New Column) button.

  1. Gateway of Tally > Balance Sheet.
    Alternatively, Alt+G (Go to) > type or select Balance Sheet > and press Enter.
  2. Press Alt+C (New Column).
  3. Select the scenario required. The Balance Sheet with the scenario appears as shown below:

Reports with Reversing Journal scenario

Mark Vouchers as Optional

Any voucher in Tally can be marked as Optional by pressing Ctrl+L (Optional) during voucher entry or in alteration mode.

Masking voucher as Optional will remove the accounting impact of the transactions from the books of account. Any transaction which is recurring in nature like rent, repayment of loan etc. you can pass all such transaction and mark them as optional. Once the actual date such transaction occurs you can regularise the transaction by opening it and pressing Ctrl+L (Regular).

Recording transactions in TallyPrime follow a simple pattern. You can use a illustration on 30th June you want to view the Balance Sheet as of that date, but June rent is not due for payment until the first week of July. This liability is not reflected in the Balance Sheet. To overcome this, enter an Optional Voucher dated 30th June.

Press Ctrl+L (Optional) to make the voucher as Optional Voucher.

Pass the following entries:

  • Debit – Rent Account
  • Credit – Cash/Bank Account

Optional Vouchers Register

  • Gateway of Tally > Display More Reports > Exception Reports > Optional Vouchers.
    Alternatively, Alt+G (Go to) > type or select Optional Vouchers> and press Enter.

You can view them from the Day Book as well.

Creation of Scenarios for Optional

In the Balance Sheet, Optional Vouchers can be viewed with the help of scenario. The Optional Voucher should be already defined as a Scenario

Note: Use Scenarios to see the effect of Optional voucher entries on reports and statements

Mark Vouchers as Post-Dated

While entering vouchers, you can mark them as post dated, as a result these vouchers are not updated in the ledgers till the date specified in the voucher. This is useful for entering transactions that take place on a regular basis. For example, if you issue post dated Cheques towards payment of installments, you can set up the payments in advance, and TallyPrime will only update them in the ledgers on the due date.

Mark vouchers Post Dated by pressing Ctrl+T (Post-Dated) button from the Button Bar. This button toggles with Current.

Post Dated Payment Voucher entry is displayed as shown:

Post-dated Vouchers Register

All Post-dated vouchers are maintained in a Post-dated voucher Register.

  1. Gateway of Tally > Display More Reports > Exception Reports > Post-Dated Vouchers.
    Alternatively, Alt+G (Go to) > type or select Post-Dated Vouchers > and press Enter.
    The major difference between post dated vouchers and other Unconventional vouchers are:
    • Post dated Vouchers affect regular books of accounts on the date of the voucher.
    • Post-dated vouchers are not available for selection in Scenarios.

Including Post-dated Vouchers in Ledger Vouchers Report

Using the ledger option under the Accounts Book in TallyPrime, you can include post-dated vouchers in the ledger voucher report.

  1. Gateway of Tally > Display More Reports> Account Books > Ledger.
    Alternatively, Alt+G (Go to) > type or select Ledger Voucher > and press Enter.
  2. Select the required Ledger. The Ledger Vouchers screen appears.
  3. Press Alt+F8 (Incl Post-dated) to include the values for post-dated transactions in the report. The voucher number of these transactions will have the prefix (Post-Dated), and the period of the report will automatically include the date of the post-dated transaction.

Create Voucher Types

TallyPrime has 28 Pre-defined Voucher Types for recording transactions, which uses a voucher type for each transaction type. Apart from default voucher types that Tally Provides, you can create new voucher types to serve your custom needs.

In this section:

  • Create of Voucher type
  • Alter of Voucher type
  • View the pre-defined voucher types

Create of Voucher type

TallyPrime allows to create a new voucher types to serve your custom needs. Illustration, GST Sales, Tax Invoice can be created under Sales Accounts for easier transaction.

  • Gateway of Tally > Create > type or select Voucher types.
    Alternatively, Alt+G (Go to) > Create Master > type or select Voucher Type > and press Enter.
    The Voucher Type Creation screen appears as shown below:

Alter of Voucher type

A pre-defined voucher type can be altered to customise it. For example, to control their numbers.

  • Gateway of Tally > Alter > Voucher types.
    Alternatively, Alt+G (Go to) > Alter Master > type or select Voucher Type > and press Enter.
    The Voucher Type Alteration screen appears as shown below:

View the pre-defined voucher types

  • Gateway of Tally >Charts of Accounts > type or select Voucher Types > and press Enter.
    Alternatively, Alt+G (Go to) > type or select Charts of Accounts > Voucher Types > and press Enter.
    The List of Voucher Types screen appears as shown below:

Voucher class for voucher types

Voucher classes are templates for voucher types, used Voucher class aids in faster data entry, appropriate allocation of stock item to ledgers, helps eliminate mistakes of wrong ledger selection, and invoice level rounding. You cannot use a voucher class in voucher alteration.

Use Voucher Classes for Sales & Purchases Cycles

A sample voucher class creation for sales transaction is as given below. You can use separate voucher classes for each type of sales for error-free and faster data entry while ensuring the following.

  • Selection of appropriate party in each type of sale.
  • Usage of specific ledgers for accounting allocation of stock items.
  • Inclusion of appropriate tax ledgers in the voucher by default.
  • Uniform calculation of additional charges.
  • Application of similar invoice level rounding off.

Create Voucher Class for Sales or Purchase

  1. Gateway of Tally > Alter > type or select Voucher Type > Sales > and press Enter.
    Alternatively, Alt+G(Go to) > Alter Master > type or select Voucher Type > Sales > and press Enter.
  2. Enter the Name of Class. If you do not see this option use F12 (Configure) to get the option.
  3. Identify the parties for which the class can be used.
  4. Under Include these Groups, select the required group to be made available in Party A/c Name while creating vouchers.
  5. Alternatively, you can use Exclude these Groups if the number of groups to exclude is lesser.
  6. Allocate the accounting ledger for stock items.
  7. Select the sales ledger to allocate stock items and set the allocation percentage.
  8. You can also select other ledgers along with sales and divide the stock item allocation among the selected ledgers. If tax ledgers need not be shown separately in the voucher, you can include those here.
  9. Set Override using Item Default to No so that for all items the allocation is to the selected ledger.
  10. In case you want to use the default allocation in the stock item master for some cases, set Override using Item Default to Yes.
  11. This screen shows the allocation of items with 5% commission, where the rate includes commission.
    Note: The allocation shown is calculated as
    • Sales = (100/105)*100 = 95.238
    • CGST & SGST = ((100/105)*5)/2 = 4.762
  12. Set the Additional accounting entries like tax, transportation charge, loading charge, and invoice rounding off.
  13. Select the additional ledgers to be included in the voucher, to avoid selection each time. Include tax ledgers at the end of the list to ensure that tax gets calculated for the other additional ledgers.
  14. Select the Type of Calculation.
  15. If you select As User Defined Value, you need to enter the value during voucher entry. For GST ledgers, automatically the Type of Calculation is set as GST. In all other cases you need to provide the Value Basis for calculation.
  16. Set Remove if Zero as needed.

    Here, different ledgers are used, and the ledgers will not be shown in the invoice if the calculated value is zero as Remove if Zero is set to Yes.
    
    Note: When using voucher class you cannot select additional ledgers during transaction.
    In a similar way, you can create a voucher class for a purchase voucher type. In case of interest, the calculation is not needed for credit notes and debit notes you can create voucher classes for these two in the same way.

Record Sales or Purchase Transactions Using Voucher Class

Using a voucher class for a sample transaction (sales voucher) is as follows.

  1. Gateway of Tally > Vouchers > press F8 (Sales).
    Alternatively, Alt+G(Go to) > Create Voucher > press F8 (Sales).
  2. Select the voucher class.
  3. Select the party. You can select only the parties satisfying the condition set in the voucher class.
  4. Enter the item details.
  5. The ledgers specified in the voucher class are displayed. You can enter the values, or the values are calculated as set in the voucher class. In case tax ledgers are included in the voucher class, taxes are calculated as per ledger definition.
  6. Provide other details as needed.
  7. Accept the sales voucher screen. As always, you can press Ctrl+A to save.
    In a similar way you can use voucher classes for creating sales order, purchase, purchase order, delivery notes, receipt notes.

Use Voucher Classes for Interest Payable & Receivable

When you are paying interest for the loans taken use credit notes with voucher class for accounting the interest to be paid to the lender. When you record a credit note with voucher class, the amount is adjusted against the interest payable to the lender.

In a similar way when you have to receive interest for the loans you have given, use debit notes with voucher class.

Note: Alternatively, you can do manual entries to account for the interest payments and receipts. But this will not be adjusted against the interest amount.

  • Press F11 (Feature)> set the option Enable Interest Calculation to Yes.

Consider the case where you are using a voucher class for interest payable.

Create Voucher Classes for Credit Note or Debit Note

  1. Gateway of Tally > Alter > type or select Voucher Type > Credit Note > and press Enter.
    Alternatively, Alt+G(Go to) > Alter Master > type or select Voucher Type > Credit Note > and press Enter
  2. Enter the Name of Class. If you do not see this option use F12 (Configure) to get it.
  3. Set up interest calculation: Simple interest.
    • Use Class for Interest AccountingYes.
    • Amount to be treated as Compound InterestNo.

4.Set up interest calculation: Compound interest.

  • Use Class for Interest Accounting Yes.
  • Amount to be treated as Compound Interest Yes.
  • Accept the voucher class screen. As always, you can press Ctrl+A to save.
    In a similar way you can create voucher classes for debit notes.

Record Interest Payable or Receivable Using Voucher Class

Using voucher class for a sample credit note with interest is as follows.

  1. Gateway of Tally > Vouchers> press F10 (Other Vouchers) > type or select Credit Note.
    Alternatively, press Alt+G (Go To) >Create Voucher > press F10 (Other Vouchers) > type or select Credit Note.
    In case the voucher is inactive, you will be prompted to activate the Credit Note voucher type. Select Yes or press Y to proceed.
  2. Select the voucher class.
  3. Select the ledgers to which you need to account the interest.
  4. Credit ledger: Ledgers in which interest calculation is enabled are listed for selection.
  5. Amount: The amount is calculated and displayed based on the voucher date.
  6. Debit ledger: Select the appropriate ledger to debit.
  7. Complete the entries, Accept the voucher screen. As always, you can press Ctrl+A to save.
    In a similar way, you can create debit notes using voucher class.

Use Voucher Classes for Receipts, Payments and Contra Entries

Use voucher classes for receipts to pre-fill the specific source of money as cash or bank. Similarly, you can specify the destination of money in the case of payments and contra entries.

The following image shows a sample voucher class for cash Payments using a Payment Voucher Type.

Use Voucher Classes for Payroll

You can use voucher classes for payroll vouchers to make the accounting entries for booking salary or wages. Creation of a payroll voucher class is similar to that of a receipt, payment or contra voucher class.

You can use voucher classes for recording payment vouchers for salary or wages to employees.

The following images show a sample voucher class for payroll payments using a Payment Voucher Type.

  • Use Class for Cost Centre/Employees based Bank AllocationsYes.
  • Select the allocation master as required.

Select the required groups for inclusion and exclusion.

Select the required ledger.

Use this voucher class when recording payroll payments to employees.

Use Voucher Classes for Forex Gains & Losses

You can use voucher classes for journal vouchers to calculate the unadjusted forex gain and loss.

The following image shows a sample voucher class for forex adjustments using Journal Vouchers.

Use this voucher class for an assisted recording of unadjusted forex gain/loss.

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