Unit 6 Voucher Creation Tally.ERP

TeamLease Skills University, Vadodara | Tally .ERP 9 - I|B. Com.

1 Unit 6: Voucher Creation

Chapter 6 Voucher Creation

Learning Objectives

By the end of this chapter you will know:

The concept of different voucher modes using hot keys.

Shifting from Accounting Voucher to Inventory Voucher and Vice Versa

About Passing voucher with cost wise analysis, using Cost category and

Centres.

How to use Different options from F12, for voucher mode.

Accounting is based on our day-to-day transaction like sales, purchases, receipts,

payments etc. These can be entered in tally in the form of vouchers. They form

the main input for the accounting, both for manual as well as for the

computerized accounting. The output is in the form of Reports. Tally recognizes

a number of vouchers which can be used to enter data.

6.1 Simple Voucher Entry

You should set the configuration in F12 for voucher entry so that only those

features that are required appear at the time of entering vouchers.

2 Unit 5: Inventory Master

Screenshot 6.1: Configuration for Accounting Vouchers

Skip date field in Create Mode (Faster Entry)

By default the option is set to Yes. This helps you to skip the date field while

entering vouchers. In such a case you would have to change the date by pressing

F2. This feature is helpful when you have to enter many vouchers on the same

day. Change the option No if do not wish to skip the date field.

Use Single Entry mode for Pymt/Rcpt/Contra

By default the option to Yes. Accordingly, you do not have to select “Dr.” and

“Cr.” every time you enter voucher (except Journal Voucher). If you change the

option to No, you would have to enter voucher in journal mode by selecting

“By” for Debit and “Cr” for Credit.



Use Payment/Receipt as Contra

By default the option is No. In Tally, contra entries can be entered through a

Contra voucher (F4). However, if you wish to enter contra entries through

payment/receipt voucher, set the option to Yes.

Use Cr/Dr instead of To/By during Entry

By enabling this option, you can change To/By to Cr/Dr in the Voucher Entry

screen.

Warn on negative cash Balance

By default the option is Yes. Tally warns you whenever there is a negative Cash

Balance at the time of entering voucher through a pop-up window. You can

change the option to No to avoid the warning.

Pre-Allocate Bills for Payment/Receipt

By enabling this option, you can pre-allocate the bills before specifying the Ledger

amount.

Allow cash account in Journal

By default, the option is No as Journal entries are meant for non Cash/Bank

transactions. If you wish to pass Journal entries containing Cash/Bank, change

option to Yes.

Allow Expenses / Fixed Assets in Purchase Voucher

By enabling this option, you can select the expenses and also Fixed Asset ledger

in Purchase Voucher Entry.

Allow income accounts in Sales Voucher


By enabling this option, you can select the income ledger in sales voucher

entry.

Show Inventory Details

By default the option is Yes. In this case, it will show the Inventory details on

the face of the voucher till you save the voucher.

Show Cost Center Details

By default, the option is Yes. In this case, it will show the cost center details

and employee details on the voucher screen till you saved the voucher.

Show Table of Bill Details for Selection

By default the option is Yes. If you chosen Maintain Balance Bill by Bill while

creating a Debtors or a Creditors ledgers, this option will show you the Table of

bill from which you can select bill to be adjusted.

Show Billwise details/Expand into multiple Lines

By default, the option is Yes. It shows you the details of all bills adjusted while

receiving or paying against the bills in the display mode. You can change it to No

if you do not want the details to be shown on the face of the voucher.

Show Ledger Current Balance

By default the option is Yes. It shows the current balance (Balance of the

Ledger Account considering all transactions in that account throughout the year)

of the account entered in a voucher. Change it to No if you do not wish to see

the balance.

Show Balance as on voucher date

By default the option is set to No. This option, if changed to Yes, will show the

balance of the ledger account as on the date of the voucher.



6.2 Types of Voucher

Tally is pre-programmed with a variety of accounting vouchers, each designed to

perform a different job. The standard voucher types are:

• Payment Voucher

• Receipt Voucher

• Contra Voucher

• Sales voucher

o Sales Orders

o Sales Vouchers/Invoices

o Delivery Notes

o Rejection In

• Purchase Voucher

o Purchase Orders

o Purchase Vouchers/Invoices

o Receipt Notes

o Rejection Out

• Journal Voucher

o Credit Notes

o Debit Notes

o Journal

• Stock Journal

• Physical Stock

6.2.1 Voucher Entry

You record a transaction through a voucher entry. To enter voucher, select

Accounting Voucher (or type V) at the Gateway. At Voucher entry screen, you

may select a Voucher Type by pressing appropriate button (F4 to F10). Selected

Voucher Type is displayed at left corner followed by Voucher Number, if any.

First we explain the common components at Header and Body of Voucher Entry

Screen of Accounts

Voucher.

Voucher Header


At Header, you enter the following:

Voucher Number

Tally will automatically enter the voucher number for you if you have set-up the

Voucher No. as automatic in “Voucher Type” settings. However, if you have

chosen manual numbering, enter the number. There are basically three options of

numbering the vouchers, that is, Automatic, Manual and None (if numbering is

not required).

Date of Voucher

The date of voucher appears at the top-right of the Voucher Creation screen.

The date is taken initially by Tally as the Current Date. The date can be changed

using the F2: Date button on the button bar.

Voucher Body

Ledger Transaction and related data is entered in the Transaction area table.

To/By (or Dr/Cr)

If you have set Yes at Use Cr/Dr instead of To/By during entry at F12:

Configuration for Voucher Entry, press B (for By) or T (for To), else press D

(for Dr) or C (for Cr) at first column to indicate Debit or Credit the ledger

that you select at Particulars Column.

Ledger Account

At Particulars field, select the Account from List of Ledgers pop-up. You may

create a new ledger by pressing Alt+C that would bring Ledger Creation

(Secondary) screen to create new Ledger.

Amount



As per the user’s selection at first column (By/To, Dr/Cr), cursor moves to

Debit or Credit Amount column. Type the amount in the Amount column (to

calculate something and paste the calculated result, press Alt+C to invoke Auto

Value Calculator, enter the arithmetic expression and press Enter. Tally will

automatically paste the result in amount field.

Voucher Narration

The last field of a voucher is Narration which is common for the entire voucher

describing the transactions.

To edit Narration, press Home to reach beginning of the Narration, press End to

reach end, arrow keys moves one character each time in the direction, to jump

one word at a time, press Ctrl + Arrow. Press Insert key to toggle between

Insert (cursor is blinking line) and Overwrite (cursor is blinking block) mode.

Copying Narration

You may copy Narration from another voucher using following key combination at

Narration field:

• Ctrl+R, repeats the Narration entered in the preceding voucher

• Alt+R, repeats the Narration entered in the previous voucher involving the

same first Ledger account.

Saving a Voucher

After complete entry of the voucher, press Enter, type Yes at Accept? Yes or

No, to save the voucher (or press Ctrl+A to save instantly). A blank Voucher

entry screen would appear to continue voucher entry. To terminate voucher

entry, press Esc, and type Yes at Quit? Yes or No. to quit.

Button of the Voucher Entry Screen

F4: Contra Voucher


F5: Payment Voucher

F6: Receipt Voucher

F7: Journal

6.2.2 Types of Accounting Vouchers

6.2.2.1 Contra Voucher

Contra Voucher is for entering Fund Transfer transaction where net Inflow and

Outflow are equal, i.e. net effect is Zero. You can enter transaction between

Cash and Bank Accounts (Ledgers placed under Groups: Cash-in-hand, Bank

Accounts and Bank OCC) only.

Example: Following transactions should be entered in Contra voucher:

Cash deposited into Bank.

Cash withdrawn from Bank.

Cheque of one Bank deposited to another Bank.

Cash given to/received back from Petty Cash.

Press F4 function key (or click F4: Contra button) at the Voucher Entry Screen

to enter a Contra Voucher.



Screenshot 6.2: Accounting Voucher Creation of Contra Entries

6.2.2.2 Payment Voucher

All transactions related to Payment (by Cash or through Bank) are recorded in

Payment Voucher. Such Payments may be towards Purchase, Expenses,

Acquisition of Fixed Assets, Dues to Creditor, Loans/Advances given by you or

repayment of Loans/Advances taken by you earlier etc. The first entry is always

Debit and second entry onwards you may specify Debit or Credit. At least one

Ledger Account placed under the Cash in Hand, Bank Accounts or Bank OCC

Group must be credited, or else the voucher will not be accepted.

Press F5 Function key (or click F5: Payment button) at the Voucher Entry

screen to make a Payment Voucher.


Screenshot 6.3: Accounting Voucher Creation of Payment entries

6.2.2.3 Receipt Voucher

All Inflow of money (in Cash or through Bank) is recorded through Receipt

Voucher. Such receipts may be towards any Income or from Debtors or

Loans/Advances taken or Refund of Loans/Advances given earlier etc. The voucher

is similar to the payment Voucher except that you Debit Cash or Bank A/cs and

Credit the Ledger from which you receive. The first entry is always Credit and

second entry onwards you may specify Debit or Credit. At least one Ledger

account placed under the Cash in Hand, Bank Accounts or Bank OCC Group must

be Debited, otherwise the voucher will not be accepted.

Press F6 function key (or click F6: Receipt button) at the Voucher Entry screen

to enter Receipt Voucher.



Screenshot 6.4: Accounting Voucher Creation of Receipt Entries

6.2.2.4 Journal Voucher

Journal is an Adjustment Voucher, normally used for non cash transactions like

adjustment between Ledger Accounts.

Press F7 function key (or click F7: Journal button) to enter Journal Vouchers.


Screenshot 6.5: Accounting Voucher Creation of Journal Entries

6.2.3 Alternation, Deletion and Cancellation of Voucher

While entering Vouchers, to Alter a voucher of same Date, press PgUp to get

previous voucher in voucher alternation mode, press PgDn to get next voucher.

To alter Voucher of any other date, press F2 and change the voucher date to

scroll through vouchers of the day by pressing PgDn. After carrying out the

alternation, press Ctrl+A to save it quickly.

To Delete a voucher, press Alt+D, and click Yes at Delete? Yes or No

To cancel a voucher (it becomes a zero amount voucher), press Alt+X, and click

Yes at Cancel? Yes or No. Cancelled voucher appears in List of Vouchers or Day

Book (but without amount).

6.2.4 Single Entry Voucher

So far we have seen equal Debit & Credit entry in voucher. But to many people,

single mode entry appears to be more comfortable for Payment, Receipt &

Contra vouchers, because you do not have to know Debits & Credits and the



voucher entry appears to be more natural and intuitive. The debits and credits

are governed by the rule where you make the entry (header or at line).

Set Yes at Use Single mode for Payment/Receipt/Contra to get single entry

mode for Payment, Receipt & Contra vouchers.

In single entry voucher, you must select the cash/bank account at the header,

but you do not enter any amount against it. The net of all the other ledger

entries (Line Accounts) is posted to the cash/ bank account selected in the

ledger.

6.3 Cost Center and Cost Category

Tally’s concept of Cost Centres and Cost Category allows an additional dimension

to a transaction. While ledger account would indicate the nature of a

transaction, it would not readily disclose, except in the narration, which part of

an organization was involved.

To activate Cost Center and Cost Category Yes the following options in F11:

Accounting Features,

1) Maintain Cost Centres

2) More than ONE Payroll/Cost Category

With the provision of cost centres, a transaction can be allocated to it. This

would then enable extraction of all transactions for a cost centre. Thus, a cost

centre can be said to be any unit of an organisation to which transactions

(generally revenue) can be allocated. When only costs or expenses are allocated to

these units, they are referred to as cost centres.

Tally gives you the cost centre break-up of each transaction as well as details of

transactions for each cost centre. When you also allocate income to the units,


they become Profit Centres. You can now obtain a Profit and Loss account

of each such Profit Centre. For your purposes, the terms Cost Centre and Profit

Centre are interchangeable.

Cost Categories

Examples of cost categories

Departments, Branch etc.

Salesman etc.

6.3.1 Creation of Cost Categories

Select Accts Info>Cost Categories>Create

(From Single Master Option) to get Cost Category

Screenshot 6.6: Cost Category Creation entry screen.

6.3.1.1 Allocate Revenue Items

Set Yes to make the cost category available at allocation for transactions related

to Normal Ledger Accounts, else set No to suspense the cost category allocation

of Nominal Ledger Accounts.

6.3.1.2 Allocate Non-Revenue Items



Set Yes to make the cost category available for allocation for transactions

related to personal & real ledger accounts.

Cost Centres:

Examples of cost centres:

Departments of an organisation. For example: Finance, Manufacturing,

Marketing and so on.

Even individuals like Salesman A, Salesman B and so on.

Screenshot 6.7: Cost Centre Creation

6.3.2 Creating Cost Centre

Follow the path to create cost centre’s Gateway of Tally> Accounts Info.> Cost

Centres> Create (Single Cost Centre).

6.3.3 Altering Cost Centre

To alter an existing Cost Centre, Go to Gateway of Tally> Accounts Info.> Cost

Centres> Alter

(Under Single Cost Centre).

6.3.4 Delete Cost Centre

You can delete a Cost Centre from the Cost Centre Alteration screen by pressing

ALT+D.


6.3.5 Activate Cost Centre Option at Ledger

At Ledger Creation/Alter screen, set Yes at Cost Centres are Applicable for the

ledgers for which you like to enter Cost Centre allocation when transacted in

Voucher.

6.3.6 Cost Category/Cost Centre Allocation in Voucher

Screenshot 6.8: Category wise Cost allocation

If you have set yes at the option More than one Payroll and Cost Categories at

F11: Accounting Features, you may allocate to multiple set of Cost Categories.

During voucher entry, on entering the figures for a ledger for which you have set

Yes at Cost Centre are applicable, you get a subscreen to enter Cost Category

allocation. Select the Cost Category and enter the amount allocated to the Cost

Category. Then further allocate the amount allocated to the Cost Category to

one or more Cost Centres (Screenshot 6.8). This way, you may allocate the

ledger amount to several Cost Categories and in turn, the amount for each Cost

Category may be allocated to several Cost Centres.

6.3.7 Cost Centre Class



Through Cost Centre Class you can pre set the allocation to Cost Centers. So

the allocations to Cost Centre are done automatically by Tally during voucher

entry, as per the pre set rules.

Set Yes at User Pre-defined Cost Centre Allocations during Entry, to get Auto

Cost Center Class name.

Screenshot 6.9: Activating Cost

Centre Class option F11


Screenshot 6.10: Cost Centre

Class

Screenshot 6.11: Defining Cost Centre % at Cost Centre Class



Consequently you get Auto Cost definition Screen where you select the Cost

Category. The list of Cost Centres for the selected Cost Category appears from

which you select a cost centre and enter the percentage to be allocated.

6.4 Summary

Our day-to-day transactions like sales, purchases, receipts, payments and so on can be

entered in tally in the form of vouchers.

They form the main input for accounting, manual as well as for computerized accounting.

The output is in the form of Reports.

Tally recognizes a number of vouchers which can be used to enter data.

Transactions are recorded through a voucher entry.

The different types of Accounting Vouchers are: Contra, Payment, Receipt and Journal.

Cost Centres and Cost Category allow an additional dimension to a transaction.


Questions for review

1) We can copy narration from preceding voucher using

a. Alt + R

b. Shit + R

c. Ctrl + R

d. Ctrl + Alt + R

Correct Answer: Ctrl + R (c)

2) The function Key used for Contra Voucher

a. Alt + F4

b. Ctrl + F4

c. F 5



d. F4

Correct Answer: F4 (d)

3) Single Entry Voucher can be used for

a. Contra

b. Payment

c. Receipt

d. All of the Above

Correct Answer: All of the Above (d)

4) We can cancel the voucher using

a. Ctrl + X

b. Alt + X

c. Shift + X

d. Alt + D

Correct Answer: Alt +X (b)

5) Allocate Non Revenue Items for Cost Category used for

a. Nominal & Real A/c Ledger

b. Nominal & Personal A/c Ledger

c. Real & Personal A/c Ledger

d. None of the above

Correct Answer: Real & Personal A/c Ledger (c)

6) We can delete the voucher from the day book using

a. Ctrl + D

b. Shift + D

c. Alt + Delete

d. Alt + D

Correct Answer: Alt + D (d)

7) We can save the voucher instantly using the key

a. Ctrl + Enter


b. Ctrl + Arrow

c. Ctrl + R

d. Ctrl + A

Correct Answer: Ctrl + A (d)

8) Receipt voucher can be used using

a. F4

b. F6

c. F5

d. F3

Correct Answer: F6 (b)

9) “Cash Deposited into Bank of Rs. 5000”. The Transaction should be

entered in

a. Contra Voucher

b. Payment Voucher

c. Journal Voucher

d. None of the Above

Correct Answer: Contra Voucher (a)

10) Depreciation A/c-------Dr, Machinery A/c ------Cr. The transaction

should be entered in

a. Journal Voucher [F5]

b. Payment Voucher [F7]

c. Journal Voucher [F7]

d. Journal Voucher [F6]

Correct Answer: Journal Voucher [F7] (c)

Documents

Unit 6 Voucher Creation Tally.ERP