How to create Purchase voucher entry in Tally ERP9

Purchase voucher is the most important voucher of every business . If you are selling something, you must be purchasing some thing for sure.Let’s create a purchase entry in Tally ERP9.

What is a purchase ?an accounting concept.

In Accounting, not all purchases are treated as purchase. I will explain this with an example.

John smith  Ltd is a Furniture Manufacturer. They are purchasing the following.

  1. Purchase of Stationary from Vivek Stationery Rs 2500.00
  2. Purchase of Timber from Rajesh Timbers Rs 100000.00
  3. Purchased Computer for office Use. 29500.00

In the above example which one is treated as Purchase of a Timber manufacturing company.

Purchase of timber is treated as  purchase, because Purchase is a direct expense, hence it must be directly related to TRADING /MANUFACTURING account. Buying of timber is for their production process, hence it directly related to production, that is  manufacturing account.

If John Smith Ltd is a Computer selling shop, then Purchasing of computer would be treated as Purchase or if John Smith Ltd is a Stationery retailer. Then Purchase of stationery would be treated as Purchase.

Read this: Purchase entry for expense and fixed asset

Purchases are of two types.

Cash Purchase:   When purchases are made with cash or cheque is called Cash Purchase

Credit Purchase: When purchase are made without payment at present and liable to pay the creditor is called credit purchase.

Who is a  Sundry Creditor?

Creditor is a Person, company or any other entity to whom we are liable to pay any some of amount or in other words Sundry Creditor is any person who supplies the goods or services or consumable items to a business firm on credit basis, will be called as sundry creditor.

In our case Rajesh Timber is the Sundry Creditor.

Journalise the Purchase Transaction of John Smith Ltd ,the furniture manufacturer.

If you are new to accounting read this article on journalising rules.

  • Purchase of Timber from Rajesh Timbers Rs 100000.00(Credit Purchase)

Purchase Account ————————Dr                                         100000

To  Rajesh Timber………………………….                                                         100000

  • Purchase of Timber For Rs 50000.00 (Cash Purchase)

Purchase Account ———————-Dr                                              50000

To  Cash    ……………………………………                                                             50000

  Purchase Entry for Expenses/Fixed Assets in Tally ERP 9

Purchase Entry When Tally ERP9  Maintaining Accounts only.

If you are using Tally ERP9 without Inventory, then follow the below

Create the following ledger

Timber Purchase (Under Purchase Account)

Rajesh Timber (Under Sundry Debtors)

Now Go to Gateway of Tally>Accounting Vouchers>F9 Purchase.

Menu Navigation to Purchase voucher

Two modes of Purchase voucher entry in Tally ERP9

In Tally ERP9 You can Enter Purchase voucher in two modes when software is in accounts only mode.

  1. As voucher
  2. As Invoice

How to activate Invoice mode Purchase Entry ?

Click on F11 When you are in Purchase Voucher,You will get Accounting Features.

F11 Features to activate invoice mode

Inside Accounting Features Enable the option

  • Allow Invoicing :  Set this option to Yes, to create Sales and Purchase vouchers in the invoice format. The advantage of using the invoice format for sales invoice entry is that it enables automatic calculations of Duties and Taxes accounts.
  • Record Purchases in invoice format: Set this option to Yes, to enable voucher class option in purchase voucher type.

Purchase Entry As Voucher Mode.

To work with as voucher mode do not activate Invoice mode purchase entry.

Let’s Enter the Credit Purchase Transaction.

 

  • On 2-06-2015 Purchase of Timber from Rajesh Timbers Rs 100000 (Credit Purchase)

Purchase Account ————————Dr                                         100000

To  Rajesh Timber………………………….                                                         100000

Change the date of Purchase Voucher

To change the date Press F2 from Keyboard or click on Date button in button panel.

Change date button

A voucher date entry form will appear.

Voucher-date-entry-form

Change the date here. 02-06-2015

Now in the voucher You will see the following options.

Supplier Invoice No: The bill no of Supplier.

Date: Just after Supplier Invoice Number, there is a date column. here you can enter the date of invoice.The entry date and bill date may have differ.

To: This is the credit aspect of  transaction .Have a look at journalised transaction above. The credit aspect is Rajesh Timber. Upon pressing Enter Key You will get a new data entry form called supplier details.

Supplier Details: Enter Supplier  Name, Address,Sales Tax No,CST No in the screen.

Supplier Details in Purchase voucher

Press Enter Key. The cursor will go to Credit Column where you can enter credit amount. Here 100000

By: It is the debit aspect of transaction. Here Timber Purchase choose ‘Timber Purchase’ from the ledger.

Narration:Now you are in the narration field, where you can enter the complete description of transaction.here is a typical form of narration.(Being timber purchased from Rajesh Timber 100 CFT@1000 bill no RT 254 dtd 31-05-2015).

Press Enter Key after finishing narration. The final purchase entry screen will look like below.

Purchase Entry as voucher

At right bottom corner a small box appear with text Accept? Yes or No. This is asking whether Tally Save this voucher in Tally Data base or Not. To save a voucher You can choose any of the following ways.

  1. Press Enter Key
  2. Press Y from Key board.
  3. Press Ctrl + A together.
  Using Additional Cost of Purchase in Tally ERP 9

Enter Purchase Voucher Entry in Invoice Mode.

Let’s enter the second transaction in Invoice Mode

  • 02-06-2015 Purchase of Timber For Rs 50000.00 (Cash Purchase)

Purchase Account ———————-Dr                                              50000

To  Cash    ……………………………………                                                             50000

Activate Invoice mode ,as described above.

Now you can see As Invoice button on the right button panel.

As invoice button

Click on as invoice button, The Purchase voucher will change to Invoice Mode. This button will work as Switcher between Voucher Mode and Invoice Mode.

As above change  the transaction date by pressing F2

Supplier Invoice No: Enter the purchase bill no

Party Name: Since Cash Purchase, enter ‘cash’ as party name.

Particulars : Since we are in Accounts only Mode enter the Purchase Ledger Here, Timber Purchase.

Amount: Enter the total bill amount.

Narration: The description of transaction if any

The Purchase entry in Invoice mode will look like below screen shot.

Purchase Voucher entry in Tally ERP9 as invoice mode

Press Enter and save.

To change the mode,You can click on As voucher Button in the right bottom of button panel.

Purchase voucher entry when using Accounts with inventory.

Now let’s check how purchase is entered when you are using Tally ERP9 as Accounts with Inventory. Tally ERP9 is a powerful software that can handle Inventory of any trading, manufacturing business with plenty of features. You can manage stock with ease, if activated accounts with inventory.

How to activate Accounts With Inventory?

To activate accounts with inventory, From the gateway of Tally press.

F11 Features > Accounting Features.

Under General find the following options and set as below.

Maintain accounts only: No, If set yes you cannot use Inventory features of Tally.

Integrate Accounts and Inventory: Set Yes if you want to use closing stock and opening stock from the inventory section. If Set No then inventory values should be manually calculated and entered in Tally ERP9.

Accounting Features for activating inventory

On Activating Inventory, In purchase Voucher You can see a new button on the right bottom of button panel .

Toggle between Accounts and item invoice

The button will work as a Toggle between Account Invoice and Item Invoice.

  • Account Invoice:  In this voucher mode, you can create invoice with Purchase ledger.
  • Item Invoice: In this mode you can Create Invoice with stock item.

Create Stock Item ‘Timber’ with Unit Cubic Feet CFT.

How to create Purchase and sales ledger

Purchase Voucher entry as item Invoice in Tally ERP9

Lets enter the first transaction as item invoice. Activate item Invoice mode by clicking on the Item invoice button.

  Purchase Entry for Expenses/Fixed Assets in Tally ERP 9

Item Invoice button

  • Purchase of Timber 100 CFT @ 1000  from Rajesh Timbers Rs 100000.00(Credit Purchase)

Purchase Account ————————Dr                                         100000

To  Rajesh Timber………………………….                                                         100000

Gateway of Tally > Accounting Voucher>Purchase F9.

Enter all details as usual, like date , Supplier invoice ,Invoice date,Party A/c Name. You will find a new field ‘Purchase Ledger’  when you are entering in Item invoice mode.

 

Purchase ledger and item selection in item invoice mode

Enter Quantity : 100

Rate : 1000

This is the final Item invoice Purchase Voucher.

Purchase voucher entry in item invoice mode

You can also  enter Item invoice in As Accounts mode and As Voucher mode as we did in Accounts only mode.

How to use Additional cost of Purchase In Tally ERP 9

Purchase Voucher entry as Acct Invoice in Tally ERP9.

Activate ‘Acct Invoice’ by clicking on Acct Invoice button.

Accounts invoice button

Enter all the details.

Under  Particulars enter the purchase ledger.

Purchase Invoice as Accounts Invoice

Configure Purchase and sales Invoice in Tally ERP 9

Compare both the Voucher screen Acct Invoice & Item Invoice.

Like wise You can Enter the purchase Invoice in Four Ways

  1. Acct Invoice as Voucher
  2. Acct Invoice as Invoice
  3. Item Invoice as Voucher
  4. Item Invoice as Invoice

Hope this tutorial helps you in making Purchase voucher entry in tally ERP9

How to create Purchase voucher entry in Tally ERP9
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2 thoughts on “How to create Purchase voucher entry in Tally ERP9

  1. sir,
    I want to know some modification in purchase voucher, as in our company we will receive the invoices after the shipment was completed. for example shipment was done on 01/02/2016 and supplier has send us invoice on 20/02/2016. in this case i want to entry both the dates in purchase voucher, but tally is not accepting different dates. can please guide me.

    Reply

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