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Record Consignment Transactions and Sale of Fixed Assets in TallyPrime

As the owner of goods, you may send the goods to a third party for consignment sales without immediate payment. You receive the payment as and when the sales happen, and if a third party does not sell any stock, such stock gets returned to you. In TallyPrime, you can record all your consignment transactions. If you are a consignment agent receiving goods from the principal, you can use TallyPrime to record all the transactions as an agent.

Along with consignment sales, TallyPrime also allows you to record the sale of fixed assets and a journal to adjust the Profit or Loss on the sale of Fixed Assets. 

Consignment Transactions of Principal

When you send goods to a third party for consignment sales, you can use godowns to manage the stock. The stock available in such godowns becomes a part of your stock value. You need to record the issue of stock items to your agent, once your agent makes the sale and you get the information, such sales also need to be recorded. When you receive the sale value from your agent or if there are any goods returned, you need to record all such transactions to track the sale of goods. In TallyPrime, you can record all such transactions.

In this section

Issue stock items for consignment sales

When you issue items for consignment sales, you need to account for your stock with a third party. In TallyPrime, you can record such stock movement through the Material Out voucher type. The recording of stock movement helps you track the stock you sent for consignment along with its location.

  1. Enable the godown to account for your stock with the third party.
    1. Press Alt+G (Go To) > Create Master/Alter Master > type or select Godown > create or select the godown.
      Alternatively, go to Gateway of Tally > Create/Alter > type or select Godown > create or select the godown.
      If only the Main Location is available, you can create a new godown or alter the existing godown. Select Create or press C to create a new godown.
    2. Press F12 (Configure) > set Enable third party stock details to Yes.
    3. In the Godown Creation screen, set the option Our stock with third party to Yes.
  2. Open the material out voucher and select the godown.
    1. Press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material Out.
      Alternatively, go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material Out.
      You can activate the Material Out voucher type if the voucher is inactive. Select Yes or press Y to proceed.
    2. Select the customer’s (consignment agent’s) name as the Party A/c Name.
    3. For Destination Godown, select the godown in which the option Our Stock with Third Party is set to Yes.
  3. Provide the stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Our Stock with Third Party and Third party Stock with us are set as No.
    3. Enter the Quantity and Rate. The amount appears automatically.
  4. Press Ctrl+A to accept the screen. The material out voucher screen appears.
    Record issue of stock for consignment sale
  5. As always, press Ctrl+A to save.

The movement of stock items is recorded as consignment stock transfer outward.

Record sales of goods by third party

When you send the goods to a third party for consignment sale, as and when you receive information from the consignment agent about the goods sold, you need to record such sales in the sales invoice. TallyPrime allows you to record such sales.

  1. Open the sales voucher screen.
    1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
      Alternatively, go to Gateway of Tally > Vouchers > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select the ledger created for the consignment agent.
    2. Party Details: Provide the Dispatch, Order, and Export details per your invoice requirements.
      If you do not see the Party Details screen, press F12 (Configure), set Provide Dispatch, Order, and Export details, and Provide Buyer details to Yes.
      Henceforth, you can enter the additional details in the sales voucher until you change the option in F12 (Configure).
    3. As always, press Ctrl+A to save and proceed.
  3. Select the Sales ledger to allocate the stock items.
  4. Provide the stock item details.
    1. Select the stock item and press Enter to view the Stock Item Allocations screen.
    2. Select the godown where the option Our Stock with Third Party is set as Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
  5. Provide Narration, if needed. As always, press Ctrl+A to save.
    Record sale of goods by third party

In a sales voucher, you can record the sale of goods made by the consignee, either by cash or credit.

Record receipt of sale value from third party

When the goods are sold by the consignment agent, either in cash or credit, as and when he receives the money and informs the same, you need to record such transaction through a receipt voucher. In TallyPrime, the amount received from the consignment agent is recorded as usual.

  1. Open a receipt voucher and enter the amount received.
    1. Press Alt+G (Go To) > Create Voucher > press F6 (Receipt).
    2. Account: Select cash or bank ledger.
    3. Particulars: Select the consignment agent’s ledger.
    4. Amount: Enter the amount received.
  2. Select the sales bill against which you have received the amount.
    1. Select Against Ref as the Method of Adjustment.
    2. Select the sales invoice reference details.
  3. Enter the bank details if the amount is received the amount via bank transfers.
    Record receipt of sale value
  4. As always, press Ctrl+A to save.

You can record period receipts from the consignee in the receipt voucher.

Record receipt of goods returned by third party

Suppose you have an agreement of consignment sale with your agent that your agent will return the unsold goods. Then as per the agreement, when the consignment agent returns the unsold stock items, you need to record them in a material voucher. In TallyPrime, you can record the goods returned from your consignment agent through the Material In voucher type.

  1. Open the Material In voucher and record the movement of stock items for consignment sales.
    1. Press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material In.
      Alternatively, go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material In.
      You can activate the Material In voucher type if the voucher is inactive. Select Yes or press Y to proceed.
    2. Select the supplier’s (principal’s) name as the Party A/c Name.
    3. For Source Godown, select the godown in which the options Our stock with third party is set as Yes.
  2. Provide stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Our Stock with Third Party and Third party Stock with us are set to No.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept. The material in the voucher screen appears.
      Record goods returned by third party
  3. As always, press Ctrl+A to save.

To record the inward movement of goods from the consignee, you can use the Material In voucher.

Consignment Transactions of Agent

When the owner of the goods sends the goods to you, as the consignment agent, you need to record the inward movement of the stock. In TallyPrime, you can record such transactions through the Material In voucher type. You also need to record the sale of the goods you have received from the owner. Once you receive the payment for the goods sold, you need to inform the principal and record the payment to the principal. If you cannot sell the goods, you must return such goods to the principal by recording the same. TallyPrime allows you to record all these transactions.

In this section

Receive stock items received for consignment sales

When the principal issues stock items for consignment sale to you, you need to account for such stock entry in your books. You can record the inward movement of stock in TallyPrime using the Material In voucher type. The stock movement recording helps you track the goods received from the principal.

  1. Enable the godown to account for your stock with the third party.
    1. Press Alt+G (Go To) > Create Master/Alter Master > type or select Godown > create or select the godown.
      Alternatively, go to Gateway of Tally > Create/Alter > type or select Godown > create or select the godown.
    2. Press F12 (Configure) > set Enable third party stock details to Yes.
    3. Set the option Third party stock with us to Yes.
  2. Open the Material In voucher and select the godown.
    1. Press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material In.
      Alternatively, go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material In.
      You can activate the Material In voucher type if the voucher is inactive. Select Yes or press Y to proceed.
    2. Select the supplier’s (principal’s) name as the Party A/c Name.
    3. For Source Godown, select Not Applicable.
  3. Provide the stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept the screen. The material in the voucher screen appears.
      Record stock items received for consignment sale
  4. As always, press Ctrl+A to save.

While recording the sales voucher, you can select the godown to which the stock items are allocated.

Record sales of goods received from the principal

After you have sold the goods you have received from the principal, you need to record the sales in your books. In TallyPrime, you can record the sale of goods as usual.

  1. Open the sales voucher screen.
    1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
      Alternatively, go to Gateway of Tally > Vouchers > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select Cash or Bank for cash sales and party name for credit sales.
    2. Party Details: Provide the Dispatch, Order, and Buyer details per your invoice requirements.
      If you do not see the Party Details screen, press F12 (Configure) and set Provide Dispatch, Order, and Export details to Yes.
      Henceforth, you can enter the additional details in the sales voucher until you change the option in F12 (Configure).
      As always, press Ctrl+A to save and proceed.
  3. Select the Sales ledger to allocate the stock items.
  4. Provide the stock item details.
    1. Select the stock item and press Enter to view the Stock Item Allocations screen.
    2. Select the Godown in which the options Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
  5. Provide Narration, if needed. As always, press Ctrl+A to save.
    Record sales of goods received from the principal

You can record the sale of goods received from the principal, either by cash or credit, in a sales voucher.

Account for the consignment sale value payable to the principal

Based on the value of goods sold, you can record a journal voucher to account for the amount paid to the principal. You can check the sales register and arrive at the amount to be paid to the principal. In Tallyprime, you can record such transactions using a Journal voucher.

  1. Open a journal voucher and enter the amount to be paid.
    1. Press Alt+G (Go To) > Create Voucher > press F7 (Journal).
      Alternatively, go to Gateway of Tally > Voucher > press F7 (Journal).
    2. Debit the expense ledger and enter the amount to be paid.
    3. Credit the principal’s ledger.
    4. In the Bill-wise Details screen, select New Ref and enter the reference numbers with the corresponding amounts.
      The journal voucher appears as shown below:
      Account for the consignment sale value payable to the principal
  2. As always, press Ctrl+A to save.

You can select the bill references of these journal vouchers while making the payment to the principal.

Record payments to the principal

You need to record a payment voucher to pay the principal based on the amount of goods sold by selecting the bill references while making the payment.

  1. Open a payment voucher and enter the amount to be paid.
    1. Press Alt+G (Go To) > Create Voucher > press F5 (Payment).
      Alternatively, go to Gateway of Tally > Voucher > press F5 (Payment).
    2. Account: Select cash or bank ledger.
    3. Particulars: Select the principal’s ledger.
    4. Amount: Enter the amount.
  2. Select the journal voucher references against which you have paid the amount.
    1. Select Against Ref as the Method of Adjustment.
    2. Select the journal voucher reference details.
  3. Enter the bank details if you have paid the amount via bank transfers.
    Payment to the principal
  4. As always, press Ctrl+A to save.

You can record period payments made to the principal in a payment voucher.

Record goods returned to the principal

Once you have received the stock from the principal and it is agreed that you will return the unsold goods to the principal, you need to record the goods returned to the principal. In TallyPrime, you can record the goods returned using the Material Out voucher.

  1. Open the Material Out voucher and select the godown.
    1. Press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material Out.
      Alternatively, go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material Out.
      You can activate the Material Out voucher type if the voucher is inactive. Select Yes or press Y to proceed.
    2. Select the Principal’s name as the Party A/c Name.
    3. For Destination Godown, select Not Applicable.
  2. Provide stock item details.
    1. Select the stock item.
    2. Select the Godown in which the option Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept the screen. The material out voucher screen appears.
      Goods return to the principal
  3. As always, press Ctrl+A to save.

To record such outward movement of goods to the principal’s godown, you can use the Material Out voucher.

Record Sale of Fixed Assets

Similar to the regular sale of goods or services, you can also sell your fixed assets. While selling fixed assets, you can record the sales transaction as usual in TallyPrime. You can also record a journal voucher to adjust the profit or loss on the sale of fixed assets.

For example, you have purchased the fixed asset for 5,00,000, and the depreciation was accounted for as 4,60,000. The value of the fixed asset was 40,000. It was then sold for 50,000 (at a profit of 10,000).

  1. Open the sales voucher screen.
    1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
      Alternatively, go to Gateway of Tally > Voucher > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select Cash or Bank for cash sales and the party name for credit sales.
    2. Party Details: Provide the Buyer details.
      If you do not see the Party Details screen, press F12 (Configure) and set Provide Receipt, Order, and Import details to Yes.
  3. As always, press Ctrl+A to save and proceed.
  4. Provide the fixed asset details.
    1. Select the fixed assets ledger grouped under Sales Accounts.
    2. Enter the amount.
  5. Provide Narration, if needed. As always, press Ctrl+A to save.
    Sale of fixed assets
  6. Print the invoice.
    1. Press Ctrl+P.
      Alternatively, press Alt+(Print) > Current.
    2. Press (Configure) to configure the print options for your invoice, if needed.
      • To change the printer, C (Configure)> type or select Printer > press Enter.
    3. Press (Preview) to check the invoice before printing if needed.
    4. Press (Print) to print.

You can view the sale of fixed assets in the Sales Register.

Click here to see the possible F12 configurations for the Sales Voucher.

Configurations

Descriptions

Provide Buyer details

Displays the Party Details screen, where you can enter the buyer’s name and mailing details.

Provide Dispatch, Order, and Export details

It involves the Party Details screen, where you can enter Dispatch, Order, and Export details.

Use default Bill-wise details for Bill Allocation.

Automatically allocate bill numbers as defined in the Voucher Type master.

Provide Additional Descriptions for Ledgers

Specify any additional description for the ledger during voucher entry.

Use Voucher No. as Bill Reference for Bill Allocation

Use the voucher number as the bill reference number during bill allocation. The bill allocation helps you to identify the invoices that need to be paid to the creditors, and also, when you receive money from debtors, the bill details help you to settle the payment due.

Modify all fields during voucher entry

Modify all fields in the sales invoice.

Provide Reference No. and Date

Specify the Reference No. and Date in the invoice. This option allows maintaining the bill number as the reference number. You can update this field manually with the invoice or voucher numbers.

Skip the Date field during voucher creation

The Date field is prefilled with the date of the last transaction, and the cursor skips this field.

Warn when Voucher No. exceeds 16 characters

Display a message when the voucher number is more than 16 characters. Any voucher number that exceeds 16 characters is not exported to the e-return formats.

Show Turnover from selected Party A/c.

During voucher entry, along with the customer’s current balance, you can also see how much turnover that customer made.

Show Current Balance of Ledgers

Display the account balance of the party ledger.

Show final Ledger Balance.

Display the account balance of the party ledger by considering all the transactions made with the party.

Use default Bank Allocation.

You can enable this option to set the bank allocation details for each receipt or payment. You can choose the transaction type and also update the Instrument date. It automatically takes the voucher date as the instrument date, which you can change manually if required.

You can record the same transaction in Journal Voucher per your business needs. However, as it is a journal voucher, you cannot generate a sales invoice for this transaction.

  1. Press Alt+G (Go To) > Create Voucher > press F7 (Journal).
    Alternatively, go to Gateway of Tally > Voucher > press F7 (Journal).
  2. Debit the party ledger.
  3. Credit the sales ledger.
  4. As always, press Ctrl+A to save.

The values of such transactions appear in the relevant reports.

 

Record Journal Voucher to Adjust Profit or Loss on Sale of Fixed Assets

After recording the sale of fixed assets, you can transfer the amount from the sales ledger to the fixed assets ledger and account for the profit or loss.

In this section

Account for profit on sale of fixed assets

Using the income ledger, you can account for the profit made on the sale of fixed assets.

For example, the value of the fixed asset after depreciation is 40,000. You have sold it for 50,000. You can transfer 40,000 to the fixed assets account and 10,000 to the income account.

  1. Press Alt+G (Go To) > Create Voucher > press F7 (Journal).
    Alternatively, go to Gateway of Tally > Voucher > press F7 (Journal).
  2. Record the transaction.
    1. Debit the sales ledger and enter the sale value.
    2. Credit the fixed assets ledger and enter the asset value.
    3. Credit the indirect income ledger. The amount (profit) appears automatically.
      Record profit on sale of fixed assets
  3. As always, press Ctrl+A to save.

The values of such transactions appear in the relevant reports.

Account for loss on sale of fixed assets

Using the expense ledger, you can account for the loss incurred on the sale of fixed assets.

For example, the value of the fixed asset after depreciation is 50,000. You have sold it for 40,000. You can transfer 50,000 to the fixed assets account and 10,000 to the expense account.

  1. Press Alt+G (Go To) > Create Voucher > press F7 (Journal).
    Alternatively, go to Gateway of Tally > Voucher > press F7 (Journal).
  2. Record the transaction.
    1. Debit the sales ledger and enter the sale value.
    2. Debit the indirect expense ledger, and enter the amount (loss).
    3. Credit the fixed assets ledger. The asset value appears automatically.
      Record loss on sale of fixed assets
  3. As always, press Ctrl+A to save.

The values of such transactions appear in the relevant reports.

 

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