Purchase Process in TallyPrime
In your business of goods or services, the purchase process that you follow may be cash purchases or purchases on credit. When you receive credit from your parties, you certainly implement measures to track the credit and pay the dues on time. The purchase process in TallyPrime assists you with options to include a credit limit from each supplier or even a predefined period to clear the dues. Similarly, in some scenarios for your purchase, you may need to record purchase returns, and receive cash or use debit notes. Based on the type or volume of business that you run, you can use a purchase order, receipt note, and so on. You can manage all such processes, and more, using TallyPrime with the flexibility of skipping any of the steps in between and interchanging the sequence of entries.
Cash Purchases: Recording the cash purchase process in TallyPrime is a single-step procedure. In the invoice, you can include details of all the items purchased, or services received. These purchase details can be allocated to a single ledger or multiple ledgers as needed. Additionally, you can include expenses like packaging, transportation, insurance, tax, and so on. After recording the details as per the invoice received from your supplier, you can print it with the supplier’s details, if needed.
Credit Purchases & Payments: In TallyPrime, the process to record a credit purchase is similar to a cash purchase. Apart from the details entered in the cash purchase voucher, for credit purchase you can record the invoice received from your supplier, record payments to the party against their invoices, and track the payables to closure. You can enter the buying prices based on the supplier profile.
Purchase Discounts: In some purchases, your supplier may give you some discounts in the form of price reductions, unbilled stock items, and so on. TallyPrime provides you the flexibility to record such trade discounts and item-level discounts using a specific ledger or even without it directly at the item level.
Additional Cost of Purchase: In some purchases for your business, you also pay additional charges like transportation expenses, extra packaging charges, labor expenses, or any other additional cost applicable to the stock item. This may be quoted in a lump sum for one or more stock items and you will want to know the additional cost of purchase on the stock items to assess the exact selling price or value of a stock item. In TallyPrime, you have the flexibility to mention the expenditure on each item in the purchase voucher along with the additional cost of purchase. You will be able to assess the exact selling price or value of a stock item that includes the additional purchase cost.
Purchase Return & Debit Notes: When you record purchase returns in your business, such return transactions can be recorded as a part of the purchase process in TallyPrime, that too against the original purchase invoice, if needed. Depending on the settlement of the bill, you may treat it as a rejection out, return cash or use a debit note to settle the return. As per your process, you can record the same in TallyPrime. Such debit notes, if any, can be consumed in the purchase invoice.
Receipt Note & Rejections-out: If your business uses a receipt note when shipping items from your supplier, you can use TallyPrime to create the same. Later, you can record purchases against the receipt notes, and track the receipt notes to closure. You also get the flexibility to generate receipt notes based on your purchase voucher. Item returned, if any, based on receipt notes can be recorded as rejections out and settled.
Purchase Order: In case you follow purchase order processing in your business, you can create purchase orders as a part of the purchase process in TallyPrime. Against the purchase order, you may record receipt notes or purchase invoices. You can track such purchase orders to closure by recording receipt notes and purchase invoices, and track receipt note to closure against purchase invoices. You may even pre-close the orders.
Though TallyPrime supports all these steps in a purchase process, it is not necessary that you choose to follow all these steps in any specific order. For example, you can just use purchase or purchase + payments or purchase order + purchase + payments, and so on. You can even record a purchase before a purchase order or purchase before receipt note.
Edit Log: If you have opted for Edit Log, then you can view Edit Log to track all the activities such as the creation, alteration, and deletion of all the vouchers recorded during the purchase cycle.
Reports: Various reports are available to track purchases, payables, pending orders, pending purchases, and so on. As in other reports, these reports also have different views, navigation options, and support analysis based on different parameters.
Click the links below for detailed information on how to manage your purchases in TallyPrime:
