How to Prepare Purchase Order In Tally ERP 9

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Let’s learn purchase order in Tally ERP 9.Purchase order is a document issued by the buyer to the seller informing or placing his order.It is popularly abbreviated as PO.Normally a PO contains the following information to communicate with seller for better order processing.

Purchase Order is the second document in the purchase management system. Tally erp 9 has developed a clear purchase management system,Which includes;

  1. Getting Quotations from suppliers.
  2. Purchase order to the supplier.
  3. Preparing Receipt note when goods are delivered.
  4. update the inventory, and updating payable account and  by entering the purchase invoice.
  5. Finally the vendor payment.

Benefits of preparing a purchase order

  • Purchase order can be used as a documents of evidence when there is a dispute among the buyer and seller in case of price difference,wrong order delivery, late delivery etc.
  • Purchase order clearly express the need of a buyer to the supplier.
  • It enables the arrangement of finance for the purchase by the finance dept.
  • It allows the pending deliveries of orders ,it enables a clear tracking and delivery of orders.

The content of a Purchase order

  1. date and PO Number
  2. Name & address of the vendor or supplier
  3. Shipping & delivery address
  4. No of quantity required.
  5. Unit price and total.
  6. Shipping Method
  7. Delivery date
  8. Other shipping terms.

In Large companies Purchase requisition issued to   purchase department.This is issued by Store Keeper when a raw material or a products reaches re-order lever.The purchase manager in consultation with Finance dept approve the purchases and prepare a purchase order.

Activate Purchase order process in Tally ERP 9

In tally erp 9, For preparing a purchase order, You need to activate purchase order processing option.

To activate PO go to

Gateway of Tally>F11 Features >F2 Inventory features.

In the Inventory features screen locate the option “Allow purchase order processing“.Activate allow purchase order processingPress enter to accept and save the features.

Purchase order Example.

Before preparing a PO it is advisable to get a quotation from the suppliers in order to know the price.While preparing a PO it is essential that you should enter the rate of each item.

 

Shah Eelectrical is the Electrical goods dealer in Delhi. and want to order the following items from RC Electrical a Whole seller on 01-04-2019 . RC Electrical is a delhi registered dealer.So the transaction will be intra-state.

  • Electric Iron  1000    Nos   @ 1200/ pcs   Total =  1200000.00  500 nos delivered in 02-04-2019 balance 500 on 31-07-2019 ( Gst Rate 18 % ,HSN 8516)
  • Electric Stove 1000   Nos   @ 4500/pcs    Total =  4500000.00 delivered on 31-07-2019 ( GST Rate 18% & HSN Code 7321)
  • Electric Toaster 500 Nos   @   750/pcs    Total =     375000.00  delivered on 01-04-2019 ( GST Rate  18 % HSN 8516)

The goods shall be transported through Lorry.

Masters for purchase order preparation .

  • Ledger:  RC Electricals – Under Sundry creditors , Enter GSTIN and state of the supplier accurately for GST compliance.

Learn How to create Sundry creditors ledger

  • Stock item: Electric Iron, Electric Stove, Electric Toaster

Learn How to create stock items

If you are buying from a GST registered dealer Within the  state SGST & CGST will be charged and If buy from other state IGST is chargeable in the Invoice. Hence you have to create those ledgers also. If you don’t know GST implementation here are some of the important guides.

  1. Enable Gst in tally
  2. Create gst tax ledgers
  3. Know about HSN  Code
  4. Create stock item for GST

How to enter Purchase order in Tally ERP 9

To Enter PO in Tally ERP 9 go to

Gateway of Tally>OrdEr Vouchers 

Order Vouchers Menu

In order Vouchers Click on Purchase Order button. OR use shortcut key Alt + F4. Now you are in PO Voucher. The same vouchers can be accessed through following way also

Gateway of Tally > Inventory Vouchers > Ctrl+F2 > F4: Purc. Order

The PO Voucher look like this.

Purchase order voucher in tally erp 9

Let’s enter the above example in the PO Voucher.

  • Change the date of Voucher using F2 Function Key or Click on Date button if you want to change the date.
  • Party A/c Name: Select the Suppliers name from the list.In our case RC electrical,Press enter .

Suppliers Details screen will appear.Enter the supplier details, order details & delivery details. Most of the details are pre-filled you just need to check and enter additional details required.

Party order & delivery details of order

  • Order  No: Enter the PO Number if  you want any other number than displayed. This order number will be tracked in the Goods Receipt note.
  • Purchase Ledger: Select the purchase ledger where you are going to account after delivery.
  • Name of Item: Select the name of stock item to be ordered,Here first item is electric Iron.

Item allocation for the particular stock item will appear.Enter the

Due date: When the item is required to be delivered. Suppose in 1000 nos Electric iron 500 nos required on 02-07-2019 and balance 500 nos on 31-07-2019 then enter the details as follows.

Enter Quantity ,Rate in the respective columns.

Item allocation

Save by pressing enter key.

Here is the allocation for electric stove

Allocation details for electric stove

Enter the Allocation for another item Toaster

The Purchase order ( po)  screen will look like this.

Purchase order voucher without gst

You can save and print the purchase order voucher if you are not buying from an un registered dealer. If your purchase bill include GST, Then you have to add gst tax ledgers.

Hit enter key twice.

In our case buyer and seller is in same state ,Hence CGST & SGST is applicable

Select the CGST & SGST ledger , The purchase order with gst look like.

Purchase order with GST

How to print purchase order in tally

You can print purchase order voucher immediately after saving the voucher by activating the option print voucher after saving in the voucher type.

This option is available at

Accounts Info> Voucher Types> Alter>Purchase Order

Access voucher in alteration mode.You can access PO vouchers through.

Display>Inventory Books>Purchase Order Book.

Select the PO you want to print. At the top of the voucher you will see a print button.Or hit Alt + P in your key board.

The print dialogue box will appear, you can select printer, preview ,No of copies to be printed ,Print format using the button provided at the right side of the screen.

Print dialogue box

Click on Yes or press enter to print.

How to Export purchase order in tally

You can export PO in PDF ,JPEG,EXCEL,HTML,XML & ASCII Formats. to do this click on export button right after the print button.Voucher export screen appear.Press back space to select the format,export location, page size etc

Export voucher screen

Select required options and press enter. The voucher will have exported in the location specified.

The exported PO in jpeg look like below.

Printed purchase order

View Purchase order Outstanding report

You can easily track the pending orders by viewing a report in tally erp 9.

Display>Statement of Inventory>Purchase Order Outstanding

You will get outstanding report based on stock group,stock item,Group wise,Ledger wise, and all orders at one place.

Purchase order outstanding based on category

This outstanding report is used to check whether the goods are delivered on time.

For example : On 01-05-2019 no delivery is made by RC electrical, In such case the report  shows as.

Purchase order due or outstanding report

Only 500 electrical Iron will display in the report,Because the balance 500 Nos is due on 31-07-2019.

Another case

Suppose on 02-04-2019 only 500 electric iron is delivered out of  500 iron box and 100 toaster by RC electrical. We have entered a receipt note or purchase voucher or both in tally.

Let’s enter a purchase voucher against this order ,for delivery of 500 nos iron box.

Accounting Voucher >F9 Purchase

When selecting the name of the supplier ,In the party details screen, You will find list of orders issued to RC electrical s,  here we had given only one., select the order number and ht enter key.

List of orders from the party

Save the screen, all the items in that voucher will have automatically imported into vouchers

Items imported to purchase voucher

But the supplier delivered only 500 Nos of electric iron which is due on 02-04-2019

Select only those 500 Nos iron box in the purchase voucher as given by the purchase bill by RC Electrical.

Select the electric iron from the voucher and hit enter , the item allocation screen will appear.

item allocation for purchase voucher

Select the first 500 which is due on 2-04-2019

When it ask you to select another order number select END OF LIST.

End of list

Only 500 nos are displayed in the voucher.

When the cursor on electrical stove & toaster  stock item select end of list in list of stock items

removing of items from purchase voucher

Or Simply use shortcut key to remove an item from the list CTRL+D. This is what the purchase voucher look like.

Purchase voucher against purchase voucher

Save the purchase voucher, Now look at the purchase order outstanding report will display only toasters from RC electrical.

purchase order after few goods are delivered

Pre-close  of purchase order

Now the shah electrical understood that RC electrical does not supply the goods as expected, and they are making delay. The company decided to close all the orders issued to RC electrical.For this you have to see all pending orders

View all pending purchase order in purchase standing report

To view this Go to Purchase order outstanding reports again

Now Click on  All orders button or use shortcut key F7 to see all pending orders including due orders.

View all pending purchase order

Now select the all items from RC electrical by placing the cursor on the line and  pressing space bar

order selection from po outstanding report

Now click on Pre close button or use Ctrl+C

Enter pre-close quantity & reason for pre-close & closed on date

Pre-closure of purchase order

Now save the screen to close the all purchase order  with RC electrical.

Frequently Asked Questions?

  • What is a purchase order Voucher in tally ?

A Purchase order voucher is an inventory/order voucher by using which  you can create a PO for placing buying request to supplier in the prescribed format.

This voucher is available at

Gateway of Tally> Order Vouchers>Alt+F4  Purchase Order.

  • Can Print HSN/SAC code in purchase order voucher ?

 

Ans : Yes you can print HSN/SAC Code in purchase order  by enabling the option

Ctrl+ P , The printing option box appear ,Now press F12 Configuration

Print HSN/SAC Column : Yes

  • How can I view all purchase order entered in tally erp 9 ?

Ans :You can view all your purchase order entered in tally by viewing purchase order book.

Display > Inventory Books > Purchase order Book.

You will get month wise list of all PO

  • Can I add terms & conditions in Purchase order?

Ans: Yes You can add terms and conditions in purchase orders by following method

Go to Inventory Info> Voucher Types >Alter>Purchase order

Find the option set/alter declaration : Yes

The declaration box will appear, you have to enter all the terms and conditions in this box and save.

  • How can I change my purchase order number in tally  erp 9?

Ans : You can make changes in the po voucher at purchase voucher type alteration. To do this you have to go to

Go to Inventory Info> Voucher Types >Alter>Purchase order

You can change the purchase order number by two methods.

By changing the method of  voucher numbering by Selecting options

  • Automatic ( Manual override)
  • Manual

Or keep the method of voucher numbering automatic and enable

Use advance configuration :Yes

You can change the starting number and add prefix details and suffix details.

  • What is the Key for Purchase order ?

Ans :  Gateway of Tally  > Order Vouchers

In the order vouchers use Alt +F4

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2 comments

  • Ravi Bhushan Prasad

    sir

    we have entered PO in tally as per party Pi
    we want to pay against purchases order
    but we have not any getting po in ref ….?

    ravi

    Reply
  • MALIK

    HOW CAN WE FEED OPEN PURCHASE ORDER AS PER CUSTOMER REQ. THEN WE SEND

    Reply

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