Recording a Purchase Order in Tally ERP 9

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A Purchase order is prepared by a business when the goods for production or for sale is about to cease. A purchase order is prepared by the buyer and send to the buyer in previously discussed rate and terms of delivery. It is popularly Known as P.O.  After receiving this order the supplier Prepare purchase invoices and deliver the goods as agreed. 

When the goods are delivered, the buyer cross verify the goods received with purchase order issued and Prepare goods receipt note.  After receiving  process only the purchase invoice is forwarded to accounts department for entering purchase entry and arrange payment for supplier.

The content of PO is the item, Quantities,rate ,date of receipt .The purchase order number is the tracking number of Goods receipt & purchase invoice

Let’s start learning How to prepare Purchase order in tally erp 9

Activation of Purchase order in Tally erp 9

The activation of purchase order can be done by following route.

F11 features > F2 Inventory Features 

Under Order Processing 

Enable Purchase order processing 

Activate Purchase order

Save the Screen

How To create a purchase order

Example of Purchase Order

Sri Ram Pvt Ltd a Furniture Retailer, issue a purchase order On 01-04-2018 to their Supplier Sunitha Furniture  as in agreed rate and terms and conditions.

Item Quantity Rate Gross GST %  Tax  Net Amount Due on date
Bamboo Chair 25 7500 187500 18 33750 221250 2/4/2018
Wooden Table 10 10000 100000 28 28000 128000 2/4/2018
Wooden Table 10 10000 100000 28 28000 128000 1/5/2018

 

Here the wooden Tables shall be  delivered 10 No by 02/04/2018  & 10 No by 01/05/2018

Terms & Condition

  • 30 Days Credit period.
  • Transport By Lorry 
  • Door Delivery.
  • Delivery Date : 02-04-2018
  • Mode of Payment : By RTGS
  • Place of delivery :Budha Jayanthi Park.

To Create a Purchase order Go to 

Gateway of Tally > Order Vouchers >Purchase Order 

The shortcut of Purchase order voucher  is Alt +F4

You can alter the voucher number to a  stylish format by changing the advance settings in the voucher type  ,Means instead of 1,2,3 You can create a stylish PO number like SR/001/18-19.

In the po voucher enter 

  • Enter the Party’s A/c Name. hit enter Key, You will get a party details screen Where you can enter Supplier name address,GSTIN, Mode/terms of payment,Terms of delivery,Receipt details like dispatch through, Destination etc. If this is not visible you can activate this by F12 Configuration> Supplementary details

Supplier details

  •  Order No: You can manually enter order No distinct from the Purchase order voucher No. If required.
  • Purchase Ledger : Select the purchase Ledger ,you have created.

Note : PO is just an order, This entry will never affect the inventory or accounts of the company. meaning no party ledger nor stock summary will affect by this order.

  • Select the Name of Item from the List of Stock Items, Item Allocation screen will appear.Due on date will be asked, This meaning when is goods is going to due for delivery. enter Due date 
  • Enter the Quantity of the item, as required.
  • Enter the Rate of the item. 

Here is the item allocation screen of Table Wooden  6 x 4

Stock item allocation screen

After entering all Items hit Twice to enter accounts ledger  in the  voucher.

  • Enter GST tax ledgers here ,the supplier is from same state ,hence CGST & SGST is applicable. 

Note : This just to match the purchase invoice & purchase order. No GSTR-2 report is affected by this purchase order entry.

Here is the Final Voucher entry screen shot.

Purchase order voucher

 

  • Press Ctrl+A to accept.

How to print purchase Order ?

The po needs to be printed to send the order to the supplier.

From the purchase order voucher click  Print button or use shortcut key  Alt +P

Purchase order printing configuration

    Select the printer if you have multiple printer by using Alt+S or click on Select printer Button.
    To select the number of copies use shortcut Alt+ C or click on Copies BUTTON 

    Click on Yes or Hit Y to print.

    Printed purchase order

    How to export Purchase order in pdf & jpeg format ?

    From the PO Voucher click on Export Button or use shortcut Alt +E, The export config screen will appear.

    Hit backspace to change the settings.

    Voucher export

    Language :Default

    Format :  Jpeg or PDF or any other format you wish to get the copy of PO in your computer.

    Hit enter Key to save the screen. The exported PO will open in the screen. You can find the exported file in export location you have chosen.

    Purchase Order Book

    You can View the all PO you have raised through purchase order book in tally erp 9. This report is located at.

    Display> Inventory Books> Purchase Order Book.

    Purchase order book

    This is a month wise summary report. If you want to view the details of a month ,place the cursor on a month and hit enter.The drill down feature will active and you can view all the PO of that month. Let’s see April Month PO.

    List of all Purchase order vouchers

    Purchase Order Outstanding Report

    This is very useful reports for companies handling large number of purchases. They will have to issue many Purchase orders and it is difficult to identify which Po is received from the supplier which is not. Once goods are received against purchase order we enter GRN vocuher , subsequently the purchase invoice.  

    After entering receipt note against a po , those PO will disappear in this report, only PO which are yet to be delivered by the supplier will show.

    Display > Statement of Inventory >Purchase Order Outstanding

    You will have multiple choice for this report.

    You can view this report by stock group wise Stock item, group,ledger wise

    Or All at one place.

    Purchase order outstanding report options

    Here is the report for All orders.

    Purchase order outstanding report

    How to pre-close of Purchase order in outstanding report?

    As we know the items in the P.O outstanding reports disappear only when we enter Goods Receipt Note. Some times we may want to cancel some of the items in the order or entire purchase order due to various reasons like order cancel. Slow moving of ordered item .Etc .In such case management may cancel the items or entire PO. By informing the supplier over phone or e-mail. In such case those items never be delivered and receipt not entered.

    Such cancelled items remains in the purchase outstanding reports. In such a case How to remove those items. To Handle such situation tally provides and option called Pre-close

    You can find a button Pre-close Ctrl + C on the button panel of purchase outstanding report.

    Pre-close  purchase order

    You just need to select the line by pressing space bar and click on Pre-close ( Ctrl +C) Button.

    1. Enter the pre- close quantity
    2. Reason for pre-close
    3. Closed On date

    Pre-closure details

    Save the screen, this will dis appear in the PO outstanding report, 

    You can still view this items in F12 configure , using option Show pre-closure order details

    Hope this tutorial helps. If you like our tutorial please do share with your friends through social media’s.

      Recording a Purchase Order in Tally ERP 9
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