Table of Contents
- 1 What is a Purchase?
- 2 What is treated as purchase in a business?
- 3 Purchase Entry in Tally ERP 9
- 4 What is As Voucher, As Invoice Mode ?
- 5 What are Item Invoice and Accounting Invoice ?
- 6 Purchase entry in Tally ERP 9 as Accounting Invoice
- 7 Purchase Voucher as Item Invoice inTally ERP 9
- 8 How to activate Accounts with inventory in Tally?
- 9 Purchase entry with item invoice
- 10 Voucher entry using As Voucher mode
- 11 Item invoice Purchase entry in As voucher mode.
- 12 Related Posts
In this guide you will learn purchase entry in tally with example. Purchase vouchers are used to record all types of purchases like Cash & Credit.
What is a Purchase?
In accounting Purchase is a direct expense and it used to calculate cost of goods sold. In General all purchase cannot be treated and posted under Purchase Account. Explain this concept with an example. M/s Computer city is a computer sales company. They have the following transactions.
- 01-04-2016 Purchased Office Furniture from Ideal Decors Worth Rs 100000.00
- 02-04-2016 bought Stationery on credit from MM Stationery for Rs 1000.
- 02-04-2016 bought 10 Nos Laptops from BITCOM Computers worth Rs 300000
What is treated as purchase in a business?
In the First two examples, the purchases are not directly related to the profit making of the company. In trading business, when we purchase for selling with the aim of making profit termed as purchase. In example three Computer city is buying computer for selling with the aim of making profit. That transaction is treated and put under purchase account under the group direct expense. Usually purchases are made after sending a purchase order to the supplier.
The Purchase of Assets and Consumable are entered as follows
- Assets and consumables on credit entered through Journal Voucher
- Assets and consumables on cash entered through payment voucher
Purchase Entry in Tally ERP 9
We can use the following example for voucher entry in tally.
To Record such entry You need two ledgers
Purchase Ledger and Supplier Ledger or Sundry Creditors Ledger. In this example Supplier is Samsung India Pvt Ltd.
- Learn How to create Purchase Ledger in Tally ERP 9
- Learn How to create Supplier ledger or sundry creditors ledger here
After creating Ledgers,
Go to Gateway of Tally> Accounting Voucher> F9 Purchase
In this voucher you will find some mode buttons that are important to enter purchase entry.
What is As Voucher, As Invoice Mode ?
For making Entry there are two modes available.These modes can be activated by clicking buttons provided at right button panel. OR Can use Ctrl + V Short cut Key.
- As Voucher: As voucher mode is a style of voucher where you can enter purchase & sales invoice
- As Invoice : This is mode where you can enter transactions in the style of an invoice
You can choose any mode for entering transactions.
What are Item Invoice and Accounting Invoice ?
There are two invoice voucher mode Just above of As Voucher & As Invoice Button,there are Item Invoice & Accounting Invoice Buttons.
Item Invoice: Item Invoice is the invoice in which stock item can be selected and its movement cab n be recorded. Also item wise bills can be printed.
Accounting Invoice: But if you activated by clicking Accounting Invoice button, only the purchase ledger can be selected and no stock item during voucher entry. This type is useful for entering service transactions as there will not be any stock item.
Note: If you are using Accounts only company this option will not be available and can enter Accounting Invoice only.
Purchase entry in Tally ERP 9 as Accounting Invoice
Now Let’s enter Above example In Accounting Invoice mode as ABC Ltd does not want to maintain stock.
- Now Click on Accounting Invoice Button.
- Press F2 Button from Key board or click Date button at the top of the voucher and change the bill date to 01-06-2016.
- Supplier Invoice No: Enter the purchase bill no here, SG/20154 Date: Date of Invoice 01-06-2016
- Party A/c Name: Select Samsung India Pvt Ledger we have created.
- In supplementary details enter the details of suppliers as shown in the below figure.
Press enter to save the supplementary details
- In the particulars screen enter Purchase ledger created
- Enter the amount 150000 in amount field.
- Enter Narration in the narration field. Example: 10 No Samsung mobiles bought @ 15000/no against bill no SG/20154 from Samsung India Pvt Ltd.
Purchase Voucher as Item Invoice inTally ERP 9
Lets change the above example as
As earlier said this option is available for companies activated accounts with inventory. By default tally is in Accounts with Inventory mode.
Recommend Reading : Fixed asset purchase using Purchase voucher
How to activate Accounts with inventory in Tally?
If your company is in accounts only mode, you can activate accounts with inventory by disabling the following option at
Gateway of Tally> F11 Features
Maintain accounts only: No
Purchase entry with item invoice
To enter item invoice you have to create stock item. In our example stock item is Samsung mobile. Create Samsung mobile as stock item.
After Creating stock item and ledgers required go to
Gateway of Tally> Accounting Voucher>F9 Purchase
Now click on button item Invoice
- Now enter the date,Supplier Invoice Number,Party A/c Name, supplementary details as explained above.
- Purchase Ledger: Select the purchase ledger.
- Name of Item: Select the stock item Samsung mobile created
- Quantity: Enter the number of item purchased here, 10 No
- Rate: Enter rate per item, here 15000/ mobile.
- Per: This field will fill automatically. This depends on what unit you have selected while creating stock item.
Read : unit creation in tally
- Amount: This will fill automatically by calculating from given data.
Voucher entry using As Voucher mode
We have entered the purchase voucher As Invoice mode. Now let’s create the same in As Voucher Mode.
Note: You can skip this if you are confused about a lot of options. This is not much important, but understands there is a mode called As Invoice and As voucher for making entry.
Accounting Invoice of Purchase in As voucher Mode
- Click on As voucher button and Accounting Invoice
- Enter the date, suppler invoice number, Supplementary as explained above.
- Under Particulars, You will find To The credit aspect of transaction that is Samsung India Pvt Ltd Ledger should be selected there and
- Enter total bill amount in amount field.
- In the By Field select the debit aspect of transaction here Purchase A/c .
- Press enter, As you are in company enabled accounts with inventory mode an inventory allocation field will be asked. Just press enter and skip that screen. As we don’t want to manage inventory.
- Enter Credit amount which is equal to debit amount 150000
- Enter narration.
Press enter to accept and save.
Item invoice Purchase entry in As voucher mode.
You can enter the item invoice voucher in As voucher mode.
- Click on Item Invoice and As voucher button
- Enter the date, Supplier Invoice No, Supplementary details as usual.
- In the To or Cr Field Select the party name
- In By or Dr Field choose Purchase Ledger and press enter
- Inventory allocation screen will appear. Enter stock item, Unit rate etc.
- Press enter to accept the screen
- Enter narration and save.
Now you might have got some idea on how to make purchase entry in tally. Leave a comment for any doubts and clarifications.