Lesson-18 Creating Purchase Vouchers

Purchase Entry

Purchase voucher is used to record the Purchase transactions of the company. The entry can be passed using the Voucher mode or the Invoice mode where the calculations can be automated and the user can experience the ease of feeding the transactions into the system.

Creating a Purchase Entry

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase transactions of the company.

To pass a Purchase Voucher:

Go to Gateway of Tally > Accounting Vouchers

·         Click on F9:Purchase on the Button Bar or press F9.

For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-

a) Debit Purchase Account

           b) Credit Party Account

To pass a Purchase entry in the Invoice mode, you need to enable the option Allow Invoicing option in F11:Features (F1: Accounting or F2:Inventory Features).

Invoice mode is of two types, namely

·         An Account Invoice

·         An Item Invoice

Account Invoice:  You will be directly selecting/debiting the Ledger account in case you are passing an Account Invoice.  This is useful especially when a Service Bill is entered and does not include Inventory.

Pass a purchase Invoice for Service availed from XYZ Couriers.

Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger account.  This is useful to record all the Inventory movements in books of account.

Pass a Purchase Invoice against purchase of Item A – 100 Nos. @ Rs. 10/= per quantity from LMN & Company.

Configuring a Invoice

Before creating the Purchase Invoice, you can set your Invoice Configurations from F12 configure:

Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice)

·         Select F12 Configure.

·         Set the options, as required.

Purchase Invoice Configuration

1.      Accept Supplementary Details: Set this option to Yes to specify the Despatch Details.  If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the default name and address present in the ledger.

2.      Allow separate Buyer and Consignee names:  Customers who are into consignment business and would like to have the Consignee details on the Invoice, have to set this option to Yes.

3.      Use Common Ledger A/c for Item Allocation:  If you would like to allocate all the Items to a single Purchase Ledger in the Invoice, you need to set this option to Yes for faster data entry.

4.      Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically as defined in voucher type master in ascending order.

5.      Use Additional Description(s) for Item Name:  If you would like to specify any additional description for item during entry, this option has to be enabled.

6.      Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice, set this option to Yes.

7.      Importer’s Options: This is useful for import transactions.

8.      Show turnover achieved with Customer:  This option will help to view the turnover details during entry.

9.      Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields.

10.  Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with quantity details. You can then check which item is  having negative stock balance.

11.  Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by configuring this option.

12.  Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry.

13.  Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering the additional Expenses.

For more details on Purchase Voucher mode configurations refer Voucher Entry Configuration

Special Keys on the Button Bar:

When you are passing an Item Invoice in Invoice mode, the following options will be available in the Button Bar.

Alt+I – Acct Invoice – You can toggle between Item Invoice and Account Invoice, by clicking on this option on the Button Bar or pressing Alt+I or vice-versa.

Ctrl+V – As Voucher – You can toggle between Invoice mode and Voucher mode, by clicking on this option on the Button Bar or pressing Ctrl+V or vice-versa.

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.

Creating Purchase Entry for Expenses/Fixed Assets

In the normal scenario when a Purchase voucher is entered, only the Ledgers created under Purchase Accounts are displayed for selection.  In certain cases if the user would like to pass the Expenses incurred or Fixed Assets purchase through a Purchase voucher which are normally entered using Journal voucher, the same is possible by enabling the option Allow Expenses/Fixed Assets in Purchase Vouchers in F12: Configure ( Voucher Entry Configuration) in voucher mode.

For Example:  Pass a purchase entry towards purchase of Computers from Supplier A.

1) Debit Computer Account (Grouped under Fixed Assets).

2) Credit Supplier A Account.

Note:

1. On enabling Allow Expenses / Fixed Assets in Purchase vouchers in Invoice mode the Fixed Asset and Expense ledgers appear for Accounting Allocation for items.

2. The Current Asset ledgers appear by default. In voucher mode the Current Asset ledgers appear after the Dr and Cr from the 3rd line. In invoice mode the same appears as additional ledgers.