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How to enter payment entry & print payment voucher ?

Payment and receipts are the primary activities of every business. Business makes payments for purchasing raw materials, capital goods , goods for selling , office supplies and getting services like  electricity, telephone bills, repayments like loan , payment of salary , wages etc. Payment is exist everywhere in day today business activities. when making a payment the accounting department should record the out flow money. This may by means of cheque or cash.  In tally erp 9 making payment and printing payment voucher is made simple. Let’s see how payment entries are made in tally.

Classification of Payment Transactions

Business dealt with many types of engagements which involves cash and bank called transactions. Transactions are defined as buying and selling of goods and services for a consideration. Every transaction requires payments. Sometimes we may pay through cash or bank.

Cash Payment

Cash payments are the transactions that settle through cash. Payments are made by cashier through immediate cash. Some  examples of cash payments entries are

Stationery purchased for Rs 500.00 (Paid by main cashier )

  • Courier charges paid Rs 20.00 ( Paid by petty cashier)
  • Tea expense Rs 10.00  ( Paid by petty cashier)

Bank Payment

These are transactions that settle through bank or by way of issuing of cheques , or by way of electronic fund transfers like NEFT, IMPS, RTGS etc. Normally big transactions are settling through cheque. However there is no rule regarding this, you are free to issue cheques of any amount. This depends on the policy of your company  . some of the example of bank a payments are.

  • Cheque issued to Ambuja cements for Rs 150000.00 vide Cheque # 456245, SBI A/c # 651
  • Rs 150000 paid to William’s Mesh  LTD towards the settlement of bill NO 896  through NEFT. ref no UTRNO1234566

How to enter payment voucher ?

To enter payment transaction of a company tally has a separate voucher type called payment voucher .To access this payment voucher.

Go to

Gateway of Tally>>Accounting Voucher 

Now click on F5: Payment Button, or use shortcut key  of payment voucher F5. 

Tally open the last used voucher type when you entering in to Accounting Voucher menu . The payment button will active only if you are in some other voucher type (like receipt, contra, sales etc)

PAYMENT-BUTTON

The payment voucher type will look like

Payment voucher

Now the payment entry can be entered in to two ways as discussed earlier in single  mode and double entry mode vouchers.

Let’s enter some example of payment voucher.

Payment voucher in double entry mode

At first We are going to enter cash payments in to double entry mode.  for the example

On 01-08-2018  Telephone bill paid for the month of July  Rs 925 

Accounting part

When  journal entry of this transaction is

Telephone expense…………… Dr           925.00

To; cash                                                                     925.00

Software part

From the payment voucher, click F12 Configure  , In the voucher configuration screen disable the option

  • Use single entry mode for payment/receipt/contra vouchers : No,

double entry mode activation

save the configuration screen by hitting ENTER key.

Now the voucher entry screen will have changed in the double entry mode.

Create a ledger for entering telephone bill, can create Telephone Expense or communication expense. If you don’t know check here.

  • Click F2 :Date button  to change the date. you can use shortcut key F2
  • Under particulars , By is the field where you can enter Debit  and To is the field where you can enter  credit aspect.
  • Select communication expense just after  By  & enter amount Just under debit amount field
  • Select cash account just after To & enter amount just under credit amount field.
  • enter narration in the narration field.

double entry mode payment voucher

Compound entry payment voucher

Compound entry in accounting is an entry with multiple debit and credit. This may be more than one debit and single credit . or more than one credit and single debit . or more than one debit and credit. Here is an example

  1. Stationery purchased for Rs 500.00 ( paid by main cashier )
  2. Courier charges paid Rs 20.00   ( Paid by pettycashier)
  3. Tea expense Rs 10.00  ( Paid by pettycashier)

The compound  journal entry for the above transaction is

Printing & Stationery ……………………. Dr               500.00

Postage & Courier  ………………….….……Dr                  20.00

Tea expense……………………………………..Dr                   10.00

To;         Cash …………………………………………………….Cr                     500.00

To;        Petty cash…………………………………………….Cr                        30.00

Stationery paid by main cashier hence credited to main cash account, courier & tea paid by petty cashier hence credited to petty cash.

How to enter compound payment entry in tally?

In tally you can enter multiple transactions in a single voucher using double entry mode.

  • Change the date if required.
  • Under particulars enter all debit aspects as said earlier just after By; & credit aspects after To;
  • Those who are confused with By & To can use Dr & Cr Instead, Just press F12 key and in the configuration screen, Use Dr/Cr Instead of To/By during voucher entry.
  • Enter the total of main cashier cash account & petty cashier cash account  as shown below.

double entry mode payment voucher

If you want narration for each entry, activate it don’t know how to activate narration for each entry click here.

In the same manner , by using double entry voucher we can enter bank payments also. Now we are going to check payment with single entry voucher mode.

Payment voucher in Single entry mode

In single entry voucher mode, only one  credit aspects can be entered but you can enter multiple debits.  Let’s enter the following example.

  • Cheque issued to Ambuja cements for Rs 150000.00 vide Cheque # 456245, SBI A/c # 651

Accounting part

Journal entry for the transaction

Ambuja Cements …………………………..  Dr                          100000.00 (Debit the receiver)

To;          SBI a/c No 651………………………..Cr                                    100000.00    (Credit what goes out)

Software part

Activate Single entry mode , Click on F12 Configure

Use single entry mode for payments/receipt/contra vouchers : Yes

Single entry mode activation

Now enter the credit aspects (bank name) at the top of the screen just after Account:  (in bank payment the credit aspect must be the bank name always.)

Debit aspect Ambuja cements just below particulars  as shown in the screen below.

Enter the amount ,hit enter twice , bank allocation screen will display.

In bank allocation screen enter the following 

  • Transaction type : Cheque
  • Instrument number : Cheque No
  • Instrument date : Cheque date

bank allocation in payment voucher

Hit ENTER and save this screen and back to  voucher again.Enter the narrations if required.

Single entry payment voucher

Save the screen.

How to print a payment voucher ?

To print a payment voucher, The best way is to set save after printing. to enable this go to

Accounts Info > Voucher type >Alter

  • Select payment from the list of voucher types, and open it. activate the following option
  • Print voucher after saving : Yes
  • Press Ctrl + A to save voucher type.

Now , When you are saving a payment voucher, the voucher will ask you to print or not.

payment voucher printing screen

To configure, voucher printing, click on F12 configure, Where you can configure height & width of the voucher.

payment printing configuration

Save this screen, will take you back to voucher printing screen. Click on yes to print voucher.

We have created a video on this topic, watch it

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