Create Purchase and sales Ledger with GST in tally
Table of Contents
- 1 What is Purchase Ledger?
- 2 How to create a purchase account in Tally ERP 9
- 3 Creating Purchase ledger for GST
- 4 Create Sales Ledger or sales account in Tally
- 5 What is sales Ledger?
- 6 Create Sales Ledger for GST
- 7 How to view edit and delete sales purchase ledger
- 8 Edit sales purchase ledger
- 9 Delete sales & purchase Ledger
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Purchase and sales ledgers are inevitable part for accounting activities of every businesses. Most of you know how to create purchase and sales ledger. This is nothing more than what we discussed earlier about ledger creation. However we are explaining of creating purchase ledger and sales ledger for freshers. and for GST compliance.
Purchase and sales are part of trading account; hence these are most important ledgers in overall accounting process.Tally ERP 9 by default providing purchase Account and sales Account as group.You can create unlimited Purchase ledger and sales ledger based on your business requirements. In order to comply with GST, You need to activate GST in tally erp 9.
What is Purchase Ledger?
Purchase ledger is a general ledger where Inventory purchase or service purchase of the business are recorded. An inventory may raw material for production purposes in case of a manufacturing business or goods for sales in case of trading business.Purchase Account is revenue accounts, hence used for profit calculation in profit and loss account.
It is important that you should not record purchase of asset, equipment, supplies like stationery in purchase account. Purchase Account or Purchase Ledger is most important because it is used to calculate the cost of Goods sold in every organisation.
Opening Stock + Purchases – Closing stock = Cost of goods sold
How to create a purchase account in Tally ERP 9
Let’s create purchase ledger as a ledger creation practice for beginners.
- Go to Gateway of Tally >>Accounts info>>Ledgers>>Create
You can Use Hot keys From the Gateway of tally >Press A then L Then C from the keyboard A+L+C
Now we are In Ledger Creation Screen
Fill the following field
- Name: Type the name of the ledger; here we are creating a Purchase – Spare parts Ledger for entering spare parts purchase only.
- Alias: Here we can define an alternative name for Purchase – Spare parts ledger, or you can use numbers or codes for easy identification something like PSPR, PL01 etc.You can use either ledger name or alias for accessing this ledger.
- Under: Select the group in which the ledger comes under, normally it is Purchase Accounts .But may vary if you have created any sub groups under Main Group Purchase Account.
- Inventory Values are affected: This feature is applicable for companies which are maintaining accounts with inventory. If you have created a company with accounts only this option will not be visible.This option.You can link inventory with accounts with this option.
- Opening balance: Enter opening balance if any and press enter save the screen.
Recommended reading : Creating Purchase Ledger for VAT .
Creating Purchase ledger for GST
What will be the difference for creating a purchase ledger for gst compliance. There are few statutory options available for GST. Let’s have a look at the ledger creation screen after activating GST.
You can setup GST rate at ledger level only if you want to segregate sales or purchase of item with same tax rate.
Learn More: How to setup gst rate/ hsn /sac codes in tally.
Apart from above enter the following details also for gst purchase ledger creation.
Is GST applicable: Applicable
Set/alter gst details: Yes ( Only if you decided to set at ledger level)
You will get a new gst details screen where you can set all gst details.
Enter, the HSN Code, gst rate, taxability as shown below image.
Save the screen.
Type of supply : Select Goods or services.
Here the final screenshot of gst purchase ledger
Create Sales Ledger or sales account in Tally
Now sales ledger creation, as you know sale is the Income source of any business whether it is a trading ,manufacturing or ever service industry. In service industry, providing service can be treated as sales for easy understanding for a beginner.
What is sales Ledger?
Sales ledger is also a general ledger where all sales happened recorded in chronological order. Serially numbered called Invoice Number.sale is a revenue account hence shown in profit and loss at the top of the income side.
How to create a sales ledger in Tally?
You can create any number of sales ledgers in tally erp 9, based on your requirements. You can can create sales ledger based on the rate of tax or VAT like sales 5% , sales 15% or based on products ‘sales mobile’, ‘Sales Home appliances’, Sales Kids garments’.
- Go to Gateway of Tally > Accounts Info> Ledger> Create
Let’s create a normal sales Ledger namely ‘sales mobile’. In the ledger creation screen enter the details as follows.
- Name: Enter the name of the ledger name, here we have decided to create ‘sales mobile’.
- Alias:Enter the alter name or we can call it as nick name, or code number for that ledger, some companies are following coding system for each and every ledger. You can type either ledger name or this alias name for selecting this ledger. lets give a second name for ledger as SL01. And you can give more than one aliases if required.
- Under: This must be ‘Sales account‘ or a sub group under sales account.
- Inventory values affected: Give yes if you want to link this ledger with Inventory or stock.
- Opening balance : Enter opening balance if any, if you are starting a fresh Financial year ,there is no chance for an opening balance but there are chances of opening balance if you are migrating a manual account system to Tally.ERP 9.
Here is the screen shot of sales ledger creation.
Press enter and save the screen. You have created sales ledger in tally now.
Create Sales Ledger for GST
In same manner of gst purchase ledger creation enter the statutory details of GST.
Is GST applicable : Applicable
Set/alter GST details : Yes
In the gst details screen enter ,hsn code, gst rate, taxability and other required details & save the screen.
GST sale ledger creation screen.
Hit enter and save.
How to view edit and delete sales purchase ledger
Now lets view/Display the sales and purchase ledger created.Go to
Gateway of Tally> Accounts Info> Display
You can see the newly created sales account ,purchase account and its aliases visible in the list. type the first few letters of ledger name or aliases, the list will shrink for easy selection. choose the ledger you want to view and press enter. The ledger will be displayed. Here you cannot make any changes.
Edit sales purchase ledger
To edit sales purchase ledger go to
Gateway of Tally> Accounts Info> Ledger>Alter
Select the sales ledger or purchase account you want to make modification.Press enter ,The ledger alteration screen will be displayed. make necessary changes and save the screen.
Delete sales & purchase Ledger
To delete a sales ledger or a purchase you must know the thing that there should not be any sales transactions in particular ledger you want to delete.
To delete a sales ledger or purchase ledger.
Gateway of Tally> Accounts Info> Ledger> Alter.
In the sales or purchase ledger alteration screen, Press shortcut key Alt+ D or click on ‘DELETE’ button on the left bottom of the screen. Tally will give you a confirmation message ,’Delete’?. Press on Y or Hit enter button or click on Yes. The ledger will have deleted.