How to Prepare Purchase Order In Tally ERP 9
Table of Contents
- 1 Benefits of preparing a purchase order
- 2 The content of a Purchase order
- 3 Activate Purchase order process in Tally ERP 9
- 4 Purchase order Example.
- 5 Masters for purchase order preparation .
- 6 How to enter Purchase order in Tally ERP 9
- 7 How to print purchase order in tally
- 8 How to Export purchase order in tally
- 9 View Purchase order Outstanding report
- 10 Pre-close of purchase order
- 11 Frequently Asked Questions?
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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;
- Getting Quotations from suppliers.
- Purchase order to the supplier.
- Preparing Receipt note when goods are delivered.
- update the inventory, and updating payable account and by entering the purchase invoice.
- 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
- date and PO Number
- Name & address of the vendor or supplier
- Shipping & delivery address
- No of quantity required.
- Unit price and total.
- Shipping Method
- Delivery date
- 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.
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.
Masters for purchase order preparation .
- Ledger: RC Electricals – Under Sundry creditors , Enter GSTIN and state of the supplier accurately for GST compliance.
- Stock item: Electric Iron, Electric Stove, Electric Toaster
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.
How to enter Purchase order in Tally ERP 9
To Enter PO in Tally ERP 9 go to
Gateway of Tally>OrdEr Vouchers
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.
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.
- 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.
Save by pressing enter key.
Here is the allocation for electric stove
Enter the Allocation for another item Toaster
The Purchase order ( po) screen will look like this.
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.
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.
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
Select required options and press enter. The voucher will have exported in the location specified.
The exported PO in jpeg look like below.
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.
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.
Only 500 electrical Iron will display in the report,Because the balance 500 Nos is due on 31-07-2019.
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.
Save the screen, all the items in that voucher will have automatically imported into vouchers
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.
Select the first 500 which is due on 2-04-2019
When it ask you to select another order number select 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
Or Simply use shortcut key to remove an item from the list CTRL+D. This is what the purchase voucher look like.
Save the purchase voucher, Now look at the purchase order outstanding report will display only toasters from RC electrical.
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.
Now select the all items from RC electrical by placing the cursor on the line and pressing space bar
Now click on Pre close button or use Ctrl+C
Enter pre-close quantity & reason for pre-close & closed on date
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)
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