Creating Party Ledgers

Party ledgers must be created under Sundry Debtors or Sundry Creditors group.

  • Customers (Sundry Debtors) buy goods or services for cash or on credit.

  • Suppliers (Sundry Creditors) supply goods and services for cash or on credit.

To create a party ledger

  1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create

The Ledger Creation screen displays as shown below:

Ledger-Creation-screen

  1. Enter the Currency of Ledger of your choice.

  2. Set Enable multi-currency to Yes under F11: Features to create or maintain ledgers in multiple currencies.

Note: You can create a new currency from this field by pressing Alt+C. For more information on currencies, see Multi-Currency.

  1. Set the option Maintain balances bill-by-bill to Yes if you maintain balances bill-wise. The Opening Balance field at the end of Ledger Creation screen displays the Bill-wise Breakup screen of the ledger.

Billwise_Party_Ledger

  • Set the Date if required. By default, the last date of your previous accounting period, for example, 31 March 2008 is picked up here. As the break-up of the opening balance is selected, the date of the bill is prior to the accounting period.

  • Enter a Name. You can also enter the bill number or document number.

  • For the ledgers under Sundry Debtors and Creditors, give the credit period or the date when the bill is due for Due date (or credit days).

Note: While entering a transaction if you opt for using effective dates instead of bill dates the due date would be calculated.

  • Enter the Amount as required. For the amount of the bill due, you can enter the particulars of all pending bills one by one.

If the total amount of all your bills covers the opening balance, the On Account becomes NIL. The total of all your bills can be beyond the opening balance. In the screen shown below, there are two bills 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account.

  Creating Expenses and Income Ledgers

6b_Billwise_Party_Ledger

  1. Define the Default Credit Period.

The credit period may be given for Sundry Debtors and Sundry Creditors. The number of credit days or period can be defined in various ways:

Sufix Example
Days None 5 is considered as 5 days.
Weeks W 5 W is considered as 5 weeks.
Months M 5 M is considered as 5 months.
Year Y 5 Y is considered as 5 years.
  1. Set the option Check For Credit Days During Voucher Entry to Yes to get a warning message when the party ledger selected in a transaction has exceeded the credit period, and outstanding bills have not been cleared.

The warning message appears as shown below:

LG_Warning

This will ensure that there is better control over credit period and outstanding amounts to be received and paid.

  1. Select Yes for the option Inventory values are affected? if your company maintains accounts with inventory.

Note: Tally.ERP 9 does not restrict you to particular accounts as you may require to link inventory with accounts like customs duty, or direct expenses related to purchases such as freight inwards.

Cost Centre options

To get the option Cost Centers are applicable? in the Ledger Creation screen, you have set Maintain cost centres to Yes in F11: Features > F1:Accounting Features.

  • Set the option Cost Centers are applicable? to Yes If any of the transactions need to be allocated to any particular cost center (which involves this ledger).

  • Set the option Activate Interest calculation to Yes to enable interest calculation automatically based on the interest rate and style of calculation specified.

  • Set the option Use advanced parameters  to Yes to enable the advanced parameters for interest rates that change from time to time.

Statutory Information

This functionality is available only, if you have enabled at least one of the options under F11: Features > F3: Statutory & Taxation. Based on the options enabled under F3: Statutory & Taxation, the fields are displayed in the Statutory Information section.

  1. Enter the Mailing Details only for party accounts like sundry debtors, creditors and branch divisions, branch/divisions, bank and bank OCC A/c, loans and advances assets, loans and advances liabilities, secured and unsecured loans, and so on. These are used in mailing outputs like statement of accounts.

  2. Enable the option Provide Bank Details to define Bank Details for the Party. On setting this option to Yes, the Bank Details screen appears as shown below:

6_Bank_Details_A

  • Click B: Hide Beneficiary Code to hide the beneficiary code. To display the beneficiary code, click B: Show Beneficiary Code.

  • Press Enter and record Bank details in the relevant fields to configure more than one Bank for a Party ledger.

  1. Tax Information: The tax information consists of the default fields PAN/IT No., Name on PAN/IT No. and the TIN/SALES Tax No. based on the features you enable in F11: Features > F3: Statutory & Taxation. The additional fields appears under taxation.

  2. Other Information: In this section information of the relationship and enterprise type of the party with whom the transaction carried out is entered.

Note: Other Information section will be displayed in Ledger Master Creation screen only when the option Use Other Information for Ledger Accounts is set to Yesin F12: Ledger Configuration.

  • Set the option Is Related Party to Yes if the party under creation is related to the business organisations. If the option is enabled, the Related Party Details screen appears.

  •  Select the Enterprise Type. Type of enterprise information is collected from the party.

  • Enter the Party’s Registration Number here.

  1. Accept the screen or press Yes.

Creating Party Ledgers
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