AC 734 - [TALLY] LECTURE 5 - VOUCHER CREATION

—  A voucher is the primary online document for recording transactions.

—  Transaction recording and analysis are greatly facilitated by having specific formats for different types of transactions.

—  Tally different predefined voucher formats or what it calls predefined types of vouchers. These are used for recording various transactions. A payment voucher is used for all types of payments, a receipt voucher for all types of money receipts, a sales voucher for recording sales transactions, and so on.

—  These predefined vouchers fulfill your normal transaction needs. They pertain to both accounting and inventory. Some of these vouchers can also be used differently according to the situation, e.g., sales vouchers can be used as invoices, vouchers can be post-dated, etc. Such use can be decided at the time of voucher entry by selecting the appropriate button.

—  The predefined voucher types can be displayed as follows:

—  Gateway of Tally > Display > List of Accounts > < Ctrl>+<V> [Voucher Types ]

Managing Voucher

—  How to Manage and Operate Voucher Types?

—  Tally acknowledges the special requirements of some users for more voucher types. These arise in cases like when you need the same voucher but in different names or separate series of numbers.

—  Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales transactions e.g. Credit Sales, Cash Sales, etc.

—  You would need to alter a voucher type to change default settings for different information appearing in vouchers.

Using [F12] can further configure a voucher.

Voucher type Alteration

—  Alter a predefined voucher type

—  Even if you do not need extra voucher types, you would normally alter the predefined voucher types to customize them according to your needs, e.g., to control their numbers.

—  Display or alter each voucher type (by pressing <enter> or double clicking) after Gateway of Tally > Display

>  List of Accounts > <Ctrl>+<V> [Voucher Types ]

—  We shall create a new voucher type to explain the different features. It would also be applicable to alteration of voucher types including predefined types.

Voucher creation

—  Create a Voucher Type

—  Create a new voucher type

—  Gateway of Tally > Accounts Info. > Voucher Type > Create

Features

—  Name

Give the name of the new voucher type, e.g., Sales Invoice.

—  Type of Voucher

The type of voucher should be any one of the predefined voucher types (already listed in introduction). The new voucher type would inherit the properties of this predefined voucher type. It would function exactly like the predefined voucher.

—  Abbreviation

An abbreviation is required particularly for unformatted reports, which do not use compressing techniques. (Tally allows printing of both formatted and unformatted reports). In this example, give 'Sale' as the abbreviation. Though there is no restriction on the length of the abbreviation, it should preferably be five characters or less.

—  Use for POS Invoicing

On selecting the Sales voucher type, Use for POS Invoicing? appears. If you wish to use this voucher type for POS Invoicing then you may set this field to Yes.

—  Default Print Title

You can set the title for the Tax Invoice in the Default Print Title field. This is helpful since you need not change the title in Print Configuration each time you use different voucher types.

—  Method of Voucher Numbering

This is, perhaps, one reason for your opting for a new voucher type. There are three methods available: Automatic - instructs Tally to number the vouchers of this type incrementing automatically.

Manual - if you wish to number the vouchers yourself. None - if you do not want any voucher numbers for vouchers of this type.

—  Use common narration?

Select Yes to give a common narration for the entire voucher. Tally vouchers can have multiple entries. Hence, you may wish to give a common narration for all the entries of the voucher or a separate narration for each entry or both. Select Yes even when you want both. Select No if you do not want a common narration.

Select Yes if you want to give a separate narration for each entry of a voucher. This would be applicable for a multiple entry voucher where you want separate details for each entry. Select No if you do not want separate narration for each entry.

—  Print after saving voucher?

—  If you want to print every voucher after entering it, select Yes, else select No. This is suitable for an online environment where you use the Tally printed voucher as the formal voucher. Remember, however, that the transaction is already recorded and posted and should you wish to make corrections to the printed voucher, you must alter the Tally voucher online and print it out again.

—  Use EFFECTIVE dates for vouchers?

Select Yes if you want to enter effective dates for vouchers. You would opt for this if you have instances where a transaction under consideration for overdue/ageing analysis is recorded currently but will take effect from another date. If effective date is entered, the overdue/ageing will be considered from the effective date and not from voucher date.

Restart Numbering

—  Voucher Numbering may be restarted with the starting number (as specified) at intervals selected by you Monthly, Yearly or Never. You must give the date whence numbering should restart under the field Applicable from.

—  The date must be the first day of the month. You may specify more than one Restart dates. For example, should you wish to renumber your vouchers from 01 June 96 on yearly basis, you must specify it in the next field. This would retain the numbering system in the prior period. If, however, you want to change the numbers from the beginning from monthly to yearly basis, simply alter the first field itself.

Prefix Details

—  If you want the voucher numbers to be prefixed with some fixed information, give the information here. Examples of prefix details are:

—  month of the voucher as given above- 'April/'

—  company info like 'TSPL/'

—  even fixed number series like '1000'

Voucher types

—  The primary intention of using classes for payment, receipt and contra vouchers is to enable data input in 'single entry' or list mode rather than in Tally's traditional double entry mode. You can also use it to have a separate form for each cash and bank account.

—  You can either alter the existing Payment Voucher Type or create a new voucher type based on it.

—  (From Gateway of Tally > Accounts Info > Voucher Types)

Vouches types cont…

— Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job.

—  The standard vouchers are:

—  Payment Voucher

—  Receipt Voucher

—  Contra Voucher

—  Sales voucher

—  Purchase Voucher

Cont..

—  Journal Voucher

—  Credit Notes

—  Debit Notes

—  You can alter these vouchers to suit your requirement and also create new vouchers.

—  For example, if you wish to distinguish between cash and bank payments you can create vouchers to do this.

The function of each voucher types

—  Contra Entry (F4)

—  Payment Entry (F5)

—  Receipt Entry (F6)

—  Journal Entry (F7)

—  Sales Entry (F8)

Types of Vouchers

Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job.

The standard vouchers are:

•Payment Voucher

•Receipt Voucher

•Contra Voucher

•Sales voucher

•       Sales Orders

•       Sales Vouchers/Invoices

•       Delivery Notes

•       Rejection In •Purchase Voucher

•       Purchase Orders

•       Purchase Vouchers

•       Goods Receipt Notes

•       Rejection Out

•Journal Voucher

•       Credit Notes

•       Debit Notes

•       Journal

•       Memo Voucher

•       Reversing Journal

•       Stock Journal

•       Physical Stock

Contra Entry (F4)

—  According to accounting rules, Contra Entry is a transaction indicating transfer of funds from:

—  Cash account to Bank account — Bank account to Cash account

—  Bank account to Bank account

Cont..

—  To view the Contra Voucher Entry Screen

—  1 . Go to Gateway of Tally > Accounting Vouchers

—  2 . Select F4: Contra from the button bar or press F 4

—  Gateway of Tally > Accounting Vouchers > selecting F4: Contra > displays the Contra voucher entry screen. As per accounting rules, Contra Entry is a transaction indicating transfer of funds from:

—  Cash account to Bank account — Bank account to Cash account

—  Bank account to Bank account

—  Contra Entry screen appears in the Single Entry Mode by default. You are prompted to choose the account, which will receive the amount (the debit ledger).

—  For example, you wish to transfer of funds from Cash

Account into Bank Account – you will debit the Bank Account and credit the Cash Account > the entry appears as:

Payment Entry (F5)

—  Gateway of Tally > Accounting Vouchers > selecting F5: Payment > displays the Payment voucher entry screen. Payment transactions can be entered using Tally's Payment Voucher.

—  The Payment Entry screen appears in Single Entry Mode by default (as the option "Use Single Entry mode for Pymt/Rcpt/Contra" is set to YES > in F12: Configure from Payment Voucher).

—  E.g.. the company settles expenses of conveyance, staff welfare, postage and stationery through cash – all in one voucher.

Receipt Entry (F6)

—  Gateway of Tally > Accounting Vouchers > selecting F6, we get the Receipt voucher screen. Similar to Payment and Contra vouchers – the Single Entry Mode appears for Receipt Entry as well.

—  Transactions accounting for money received are entered into Tally through the receipt voucher.

—  For example, your company receives money from a customer for an earlier transaction. The customer account has to be credited and if cash is received – debit the cash account. If cheque is received debit the bank account where you will deposit the money received.

Journal Entry (F7)

—  Gateway of Tally > Accounting Vouchers > selecting F7: Journal.

—  Journal entries are used in instances where the company requires to adjust the debit and credit amounts without involving the cash or bank accounts. Hence, they are referred to as adjustment entries.

—  For example, there may be entries made for interest accrued or interest to be paid. If a party is involved in such a transaction – the entry will be

Dr.  Party

Cr.  Interest Account

Sales Entry (F8)

— When a sales transaction takes place, a document, detailing the transaction (item name, tax, etc) has to be given to the buyer (debtor) as proof of purchase by him. This document is called "Invoice" or "Bill" or "Cash Memo". The practice of issuing an Invoice, which is in vogue, is available in Tally.

Cont…

—  Gateway of Tally > Accounting Vouchers > selecting F8, Tally displays the Sales Invoice screen. The Invoice mode is default. To enter details of sale transactions – use Tally's Sales entry (F8 – in Accounting Vouchers).

—  Sales entries can be made in the Voucher as well as Invoice Formats.

—  Invoicing or sales invoicing is not very different from sales voucher entry. The advantage of using the invoice format for sales invoice entry is that, automatic calculations of taxes and duties (ledger accounts classified under the group 'Duties & Taxes') is possible.

Currency

—  For many organizations, globalization of business has necessitated working with more than one currency. Transactions are often made in currencies other than the home currency. Such transactions have to be recorded either in the home currency or in the foreign currency. If they are recorded in home currency, the rate at which the foreign currency is exchanged for the home currency should be recorded as well. Sometimes you need to record the transaction in foreign currency itself. This would arise when you maintain the balance of the concerned account in foreign currency. Tally uses the term base currency for the currency in which your account books is kept (typically in home currency). Foreign Exchange is used interchangeably with foreign currency.

—  You had, of course, specified your base currency while creating the company.

—  Tally has attempted to make the complex task of handling multiple currencies very easy for you. You would find some new ways of working with multiple currencies, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.

—  The Balance Sheet and Profit & Loss Account of the company will always be maintained in the base currency. Conversion of foreign currency account balances will be done as per rules set by you.

Managing Multiple currency

—  You must first activate multi-currency capabilities.

—  Gateway of Tally > [F11]:Features

—  Gateway of Tally > Accounts Info. > Currencies

The Currencies menu has the usual create, display and alter options. There is an additional option, Rates of Exchange. We shall examine each option in greater detail.

—  Symbol

—  Give the Currency symbol, as it should appear in all reports. If your keyboard does not have the symbol, you may use ASCII special characters with [Alt] key combination. Utilities like Character Map in Windows will give the key combination for most symbols. Some notebook computers may not easily allow input of special characters through [Alt] key combination.

Consult the computer's user manual or ask the vendor.

—  Tally prevents you from having duplicate symbols.

—  Formal Name

—  This is meant for the name of the currency, e.g., U.S. Dollars, Pound Sterling, Indian Rupees, Omani Rial etc. You are not allowed duplicates.

—  Advanced users would be interested in the main reason for requiring a formal name.

—  Suppose you have two companies, viz., Tally Demo & Company and Tally Demo. Each company would have its own set of currencies. In one you may have used the symbol $ for Australian Dollars and in the other the symbol $ may be for U.S. Dollars. You might have occasion to compare an account in the two companies (by using New Column in displays). For proper comparison, you would want the accounts in the same currency. Since the symbol is the same but refer to two different currencies, The Formal Name is used to distinguish them. How does it do it?

—  The company that has been loaded first will retain the original symbol for display purposes. The other company's currency symbol will be prefixed with the first letter of the formal name (or as many letters as necessary to make it unique). E.g., If Tally Demo is loaded first and then Tally Demo & Company, the symbol $ will remain for Australian Dollars in Tally Demo. In Tally Demo and Company, the symbol $ will be prefixed with the letter U which is the first letter of its formal name. Though you may not appreciate the significance when working within one single company, it will be quite apparent when you wish to compare data with another company.

—  Number of Decimal places

—  Give the number of decimal places for the currency. You cannot specify the name for loose change e.g. pence, cents, paisa etc. Hence, you must specify decimal places. Some currencies have 2 decimal places, e.g. paisa; some have 3, e.g., Dinar. Still some others do not have any decimal places at all, e.g., Vietnamese Dong.

—  You are not permitted to change the number of decimal places once you have used the currency in entry of transactions.

—  Show amounts in millions? (Yes/No)

Tally has two formats for displaying an amount, viz., in millions and in lakhs. 1000000 (one followed by six zeroes) in millions format would appear 1,000,000 and in lakhs 10,00,000.

Selecting 'No' would mean you want amounts to appear in lakhs

Exchange rates

—  The screen always comes up in Alter mode:

—  Standard Rate

The standard rate is used to calculate variances from the actual transaction rates. You may choose to leave it blank.

—  Selling Rate – Specified Rate

This is the rate obtained from the daily newspaper or your banker. If you input this rate before any transaction entry, while entering a foreign exchange transaction, this rate will be brought up by default. (You may still change the actual rate). Selling rate is your selling rate (as opposed to bank's selling rate. Banks will buy currency from you in this case) used for receipt voucher entry where you receive foreign exchange. This foreign exchange would be sold to your bank (which buys it at its buying rate).

Cont..

—  The actual rate at which the currency was last used is displayed and cannot be changed.

The specified rate is used for calculating foreign exchange variances only in case there is no standard rate.

—  Buying rate – specified rate

This is the rate at which you would buy the foreign currency (as opposed to bank's buying rate. Banks will sell currency to you in this case). Hence, it is used in payment vouchers.

………..THE END …….