Lesson-16 Creating Payment Voucher

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

To view the Payment Voucher entry screen:

Go to Gateway of Tally > Accounting Vouchers

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

Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.

If Second option (In red rectangle) set to yes then we have single payment mode entry, see below image.

Or if Second option is no then the Entry is convert in multiple mode, see below image:

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 entry 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.

Creating a Payment Entry with Narration for each Entry

If you want the narration details for every ledger you debit or credit (Single narration), you can configure Tally.ERP's Narration details accordingly.

To activate the option Narration for each entry,

Go to Gateway of Tally > Accounts Information > Voucher Types > Alter

1.      Select the required Voucher Type.

2.      Enable the option Narrations for each Entry and accept the details.

3.      Return to Accounting Vouchers in Gateway of Tally and select the voucher type and pass the entry.

Narration for each entry option is available for all Accounting Voucher Types.  Given below is an example of a Payment transaction with narrations for each entry enabled:

The above entry consists of both common narration and narrations for each entry.  In case of multiple debit/credit entries, you can give single line narration separately for every ledger account selected.

Special Keys for Voucher Narration Field

·         ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

·         CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Warn on Negative Cash Balance

You can configure Tally.ERP 9 to prompt you with a warning when the Cash ledger reaches a negative balance.

To activate Warning on Negative Cash Balance,

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.

For Example:

Let us assume there is a cash balance of Rs.25000 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 prompts 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/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. Here set the option 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

This is full method to know about how to create payment voucher with single and multiple configuration. You can also make bank to bank payment through payment voucher.