Accounts Voucher Class in Tally-Advanced Features

Voucher data entry with Basic info are explained . In this post, we describe the advanced features of Accounts Masters in tally.  In this post we describe how to configure the contents and set up rules for Voucher Data entyr

We have seen Voucher Entry with basic features earlier. Here we discuss about various Configuration options of Accounts Voucher Entry, to customise the contents and entry features.

Accounts Voucher Entry Configuration in Tally

Initially, Tally auto sets up default Voucher entry configurations. The default Voucher entry configuration may be re set through Voucher Entry General Configuration set up. However, the default Voucher Entry General Configuration may be temporarily re set for the current voucher, during voucher entry.

Accounts Voucher Entry General Configuration Set up in Tally

Accounts Voucher Entry General Configuration in Tally

To customise the rules and contents of voucher by user as per specific needs, set up General Configuration options of Voucher entry, which would be applicable as default. However, during current voucher entry, the default configuration options may be changed for the current session only, for the specific voucher being entered.

At Gateway of Tally, click F12:Configure to get Configuration Menu. Select Voucher Entry to get Voucher Entry Configuration screen, showing Configuration options for Accounts Voucher Entry

Current Voucher Entry Configuration options  

The options set under General Voucher Configuration are applied as default for all types of Voucher Entry. You may override the default option for the current voucher being entered, through Configuration of the Current Voucher.

Contra Voucher entry Configuration in Tally

To set the Configuration option for current Voucher being entered, at the current entry screen, click F12:Configure to get the Voucher Entry Configuration screen for current Voucher, for the respective Voucher Type. Set the option which applies to the current voucher being entered.

Payment Voucher entry Configuration in Tally

Payment Voucher entry Advanced Configuration in Tally

In some voucher types, like Payment & Journal Voucher entry configuration, you have to press F12 button to get second screen showing further advanced Configuration.

Receipt Voucher entry Configuration in Tally

Most of the Voucher entry configuration options are common across different voucher types. The Configuration options and their effect in Voucher Entry screen / process are discussed at respective Voucher entry.

Journal Voucher entry Configuration

Journal Voucher entry Advanced Configuration

Accounts Voucher Date Entry in Tally

Voucher Date may be entered in 2 ways by setting the way of Voucher Date entry. At Voucher Entry Configuration, at Skip Date Field in Create Mode (faster entry), set Yes to automatically carry the current Date at Voucher Date field (the cursor skips the Voucher date field).

Voucher Date entry for each Voucher : At Skip Date Field in Create Mode (faster entry), Set No to get the Cursor at Voucher Date at each Voucher Entry. This is useful when you like to enter Vouchers of different Dates.

Voucher Date entry configuration set up

Change Voucher Date : To change the Voucher Date , at Voucher Entry screen :

• Change Current Date : Click F2:Date and enter the Current Date, which is carried to Voucher Date. This is useful when you like to enter several Vouchers of current Date so that you do not have to type Voucher Date in each Voucher. The Current Date is automatically carried in Voucher Date.

Current Voucher Date entry

Change current Voucher Date : Press Shift+Tab keys to go back to Voucher Date field and enter the Voucher Date. This is useful when you like to change the Voucher Date of the current Voucher.

Current Date carried

Voucher Date Entry

Accounts Voucher Effective Date in Tally

For some reports and computation, some specified Date (other than Voucher Date) entered in Voucher, is reckoned. Such Date, used for special purpose, entered in addition to Voucher Date, is called Voucher effective Date.

Voucher Effective Date is used to compute Due Date and Interest for Sales, Purchase, D/N & C/N voucher considering Effective Date instead of Voucher date.

To enable entry of Effective Date also in the Voucher, set Yes at Use Effective Date at the respective Voucher Type. During voucher entry, you will get a field for Effective Date in voucher entry.

Entry of Effective Date

Voucher entry with Effective Date

At the voucher entry screen Press F2: Date to enter Voucher Date & Effective Date.

The next Date to current Date is carried at Voucher Date as well at Effective Date. Now you may change either or both of them. The effective Date may be earlier or later than Voucher Date but must lie within the Current Period.

Effective Date may be modified only though F2:Date. If you alter Voucher Date in Voucher, the cursor does not move to Effective Date in the Voucher.

To change it, press F2:Date and enter the Voucher Date & Effective Date of the voucher, which is then carried to Voucher Date & Effective Date respectively, in the voucher. The Effective date is shown just below the voucher date (in place of Day of Week).

Accounts Voucher Narration in Tally

Accounts Voucher Narration is complete description of transaction details recorded in the voucher. Narration may be entered at 2 levels, as specified in Voucher Type creation

• Ledger Narration : Separate Ledger Account Narration for each ledger account in voucher, describing the transaction details  in respect of the specific ledger account. 
• Voucher Narration : Common Voucher Narration, describing the transaction details in respect for whole voucher

Accounts Voucher Narration option set up in Tally

At Voucher Type creation, you have to set up option for Voucher Common Narration  & Voucher Ledger Narration.

Accounts Voucher Common Narration entry in Tally

After entry of all particulars, the cursor goes to Voucher Common Narration field (if Voucher Common Narration is activated for the respective Voucher Type).

You have to enter voucher narration in one virtual continuous line within the Voucher Narration Text Box. The Narration gets terminated where you press <Enter>. You may enter Cheque details also in Voucher Narration.

Common Narration entry in Accounts Voucher in Tally

Ledger Narration entry in  in Accounts Voucher in Tally

Having activated theLedger Narration feature at respective Voucher Type,  during voucher entry, you will get a prompt for Narration after entry of Ledger Account details.

Ledger Narration entry in Accounts Voucher in Tally

Accounts Voucher common & Ledger Narration entry in Tally

You may enter Ledger Narration (if activated) as well as Common Narration (if activated), for the voucher type, in one voucher.

Accounts Voucher common & Ledger Narration entry in Tally

Ledger Narration is useful when you have to explain each entry separately. For example, while making a payment  voucher for conveyance expenses for several employees, you may make separate entry for each employee and enter the name of the employee and other details at each ledger entry.

Even having activated Ledger Narration for a Voucher Type, you may leave it blank where separate Ledger Narration may not be useful.

In Normal entry mode, you may enter Ledger Narration for each ledger account transacted, while in  single mode voucher , you can enter ledger narration only for line accounts (not for header account)

Ledger Narration increases the Narration entry task as Narration has to be entered for each ledger account. So, you must plan properly to apply this feature only to those voucher types where separate details of each ledger transaction is to be maintained.

Accounts Voucher Narration display in Reports

You may set the options about the method of display of Voucher Narration in Accounts Report,

To show Voucher / Ledger Narration in Display / Print, at Reports Display / Printing Configuration option, set Yes at Show Narration also.

In Account Books like Day Book etc., the Voucher Narration would be shown at the end of respective Voucher details. The Ledger Narration, if entered, will be shown just below respective Ledger Account

In Ledger Account (Ledger Book), the Ledger Narration is shown after the respective complementary account, while the Common Narration is shown at the end of voucher.

Ledger Book showing Voucher Ledger Narration

Multiple Ledger Narration in Accounts Reports in Tally

Sometimes, multiple entries for same Ledger Account made to record the details in respect of each transaction part. In such case, entry for same ledger Account, and different Narration is entered for each Part. Apart from Ledger Narration, common Narration may also be entered  for the entire voucher.

If multiple entries for same ledger account is entered in one voucher, the amount of all such entries for the ledger in the voucher is summed up and shown in the Report (Ledger  / Cash Bank Journal Book) instead of each entry amount, and the Ledger Narration of first entry only is shown (the Narration of subsequent entries are NOT shown). The Common Narration is shown in the Ledger account, at the end of the voucher.

Multiple Ledger Narrtion in Voucher

Multple Ledger Narrrtion in Ledger Book

Debit Credit sign in Voucher Entry

Accounting transaction contains both Debit & Credit entries, indicated by Debit / Credit sign in Accounts Voucher.

During Normal mode Voucher entry, the Debit / Credit sign of each entry has to be specified (by Dr/Cr pair or To / By Pair, as per personal choice).

To set the sign as per user preference, at Voucher Configuration screen, at the option Use Cr/Dr instead of To/By,.set Yes  to show Dr/Cr at the first column, else set No  to show To/By at the first column in Voucher Entry. Accordingly, Type B (for By or D) for Debit, T (for To or C) for Credit during Voucher Entry

Voucher Entry using Dr/ Cr Option

The voucher data is stored in same manner, whichever indicator you use. You may switch between these 2 options at any time as per your choice. 

Voucher Entry using To/By Option

Dr/Cr or To/By sign is a matter of personal preference. This option does not otherwise make any material effect on the system. As the Amount column headings are Debit and Credit, people prefer to use Cr & Dr, (in this book Dr / Cr would be used instead of To/By)

Negative Cash Balance Warning during Voucher Entry in Tally

Cash cannot be paid if there is no balance. So, Cash Balance should never go negative. However, it may happen due to incomplete, or wrong data entry. To trigger warning at the impending negative cash balance at Payment voucher entry, at Voucher Entry configuration, set Yes at Warn on Negative Cash Balance. Consequently, warning message would be shown during voucher entry, if the current voucher would make the cash balance negative, so that you can check up instantly. It is useful when voucher entries are not made strictly in chronological order.

To avoid unnecessary warning message, when all vouchers may not be entered chronologically, set No at Warn on Negative Cash Balance, to avoid warning message during Vouchers entry when cash balance becomes negative.

Voucher Entry Negative Cash Warning

However, you may still ignore the warning and continue voucher entry. Sometimes, the warning may be due to omission of a prior receipt  / contra voucher entry.

Ledger Balance Display during Voucher Entry in Tally

Sometimes, it may be helpful to view running ledger Balance of each transacted ledger account prior to transaction and post-transaction, during Voucher Entry.

At Voucher Entry Configuration, at Show Ledger Current Balances, set Yes to show the Current Balance of the selected Ledger Account, at the time of voucher entry (irrespective of voucher date), just below the Ledger Account line. Else, set No to hide Ledger Balance (No Ledger Balance will appear ) at the time of voucher entry.

Ledger Balance display during Voucher Entry in Tally

• Voucher Date Balance : Having set for Ledger Balance Display (i.e when you set Yes at Show Ledger Current Balances), at  Voucher Entry Configuration, you may further  set Yes at Show balances as on Voucher Date to display  balance for the Ledger as at the Voucher Date instead of current balance.

This may be helpful in case of Back dated Vouchers entry when you want display of balance for the Ledger as at the Voucher date instead of current balance

• Ledger Current Balance : Alternatively, atShow balances as on Voucher Date, set No to display Current Balance of Ledger at the time of entry (irrespective of Voucher Date) for the Ledger as at the Voucher Date instead of current balance.

When you make voucher entry regularly and in chronological order, Current Balance is better option. Voucher Date Balance may be useful only when you make back dated voucher entry and frequent modifications of back dated voucher.

Payment / Receipt Voucher for Contra Entry

For funds transfer between Cash & Bank Accounts, like Cash Withdrawal from Bank, Cash Deposit to Bank,  Inter Bank Account transfers, Contra Voucher is created. In Contra Voucher, account other than Cash or Bank Accounts is not allowed to be entered.

However, ledger accounts (other than cash / Bank) are also involved in the transfer of Fund. For example, you make a DD or advice Bank to transfer fund from one bank account to another and the Bank debits Bank Charges for the services.  Or, you direct the Bank to deliver Cash to your office / factory and the Bank charges for the Cash Delivery services.

In such cases, you cannot create a single voucher, due to self imposed restriction in Contra Voucher. So, you need to create Payment / Receipt Voucher to record Fund Transactions involving ledger other than Cash Bank Account also.

To enable entry of  Cash / Bank inter transfers through Payment / Receipt Voucher, at Payment / Receipt Voucher Configuration, set Yes at Use Payment / Receipt as Contra.

Payment Voucher entry for Fund Transfers in Tally

When you create Payment / Receipt Voucher for Contra Transaction (Fund transfer from one cash / bank account to other), create only one voucher (DO NOT create two separate vouchers for Money Out  & Money In . One voucher will affect two way entries (like a Contra  Voucher). 

However, this option sould be used in exceptional cases only. Alternately, create Contra Voucher for fund trasnafetr and separate voucher for the revenue account (e.g for expenses).

Cash / Bank Account in Journal Voucher in Tally

Normally, Cash / Bank Account transactions are not entered in Journal Voucher (entered in Contra / Payment / Receipt Voucher).

However, to enter data with Cash / Bank transactions also in Journal Voucher, at Journal Voucher Configuration screen, set Yes at Allow Cash Accounts in Journal to enter cash / bank account in Journal.

Consequently, you may enter Cash / Bank Account also in Journal Voucher. However, this option sould be used in exceptional cases only.

Journal Voucher with Cash / Bank transaction in Tally

Voucher Entry involving Arithmetic Calculation in Tally

Sometimes you need to make some quick computation during voucher entry. Instead of  finding and using a Calculator, you may make the computation using Tally Calculator from  the current screen and paste the result of an arithmetic calculation at a Numeric input field (like Amount in Voucher) without having to re-type it (and eliminate typing mistake)

To make arithmetic calculation inside tally and also carry in numeric Field press, press Alt+C to invoke the Calculator and type the arithmetic expression at Calculator Area (like 600*3).  The computation result (like 1800) will be shown in next line in the Calculator area and will also be pasted in the numeric field from where the Calculator was invoked (Alt+C was pressed). 

This feature is quite useful to compute-&-paste numeric figures in any entry screen, quickly and correctly, in one action. No need to use physical Calculator or invoke any other external Calculator Application to compute-copy- paste

Pasting Computed Value from Tally Calculator in Input field

Voucher Statistics Report in Tally

Voucher Statistics Report shows the Number of Masters records & Vouchers entered.

Select Display > Statement of Accounts > Statistics to get the Statistics Report.

Accounts Statistics Report (default) in Tally

Accounts Statistics Report (Vertical) in Tally

In the left pane, you get the number of vouchers for each Voucher Type and in the right pane, you get the number of each master records.

The number of Vouchers shown include Optional Voucher of the respective Type (number of Optional Vouchers are not revealed separately in the Report). Canceled Vouchers are indicated alongside

Voucher Statistics Report Configuration

Voucher Statistics Report Configuration in Tally

To configure the layout and contents of Voucher Statistics Report, at Voucher Statistics Report, click F12:Configure to get Statistics Configuration screen, to set the following options

• Format  : At Show Vertical Statistics, set No to show the Statistics Report in Normal Format, else set Yes to show the Statistics Report in Vertical Format
• Sorting : At  Sort by Parent Voucher Type, set Yes to list the Primary Voucher Type in alphabetical sequence and derived Voucher type under the respective Parent Voucher Type. For example, if you create Cash Memo of type Sales  Voucher Type, then Cash Memo would be listed after Sales.

At  Sort by Parent Voucher Type Set No to list in alphabetical sequence of Voucher Type Name. For example, if you create Cash Memo of type Sales  Voucher Type, then Cash Memo would be listed in alphabetical order (i.e before Sales)

• Usage : At Remove Voucher Type having No entries, set Yes to list only those Voucher Types / Masters for which some record has been created (so the entities with zero number of records will not be listed, else, set No to all Voucher Types / Master, even if no record has been created (so the entities with zero number of records will also be listed.

Provisional Accounts Vouchers in Tally

When you enter a voucher, the effect is immediately updated in all related reports. However, in some situations, we need to defer the effect of the voucher in the system (keep the entered voucher dormant). Such dormant Vouchers, which do not affect accounts on entry like regular vouchers, are called Provisional Vouchers.

Tally provides 4 kinds of Provisional vouchers

(Memorandum, Optional, Post Dated & Reversing Journal), which do not impact the entire system immediately on entry of voucher.

Activation for Provisional Accounts Voucher

To activate Memorandum & Optional & Reverse Journal Voucher for the Company, at F11:Features>Accounting Features , set Yes at Use Reversing Journals & Optional Vouchers. Consequently, in voucher entry screen, you get following   buttons:

• L:Optional / Regular : To Create / Convert Optional / Regular Voucher
• F10:Rev Jrnl : To create Reversing Journal Voucher
• F10:Memos : To create Memo Voucher
• Post dated / Current : To toggle between Post Dated & Current Voucher entry mode.

Buttons for Provisional Vouchers Entry in Tally

Optional Accounts Voucher in Tally

Optional Voucher is a kind of Provisonal Voucher. It is created when the transaction is anticipated to happen (before the transaction takes place, e.g to be used for Scenario). It may be deleted if the antcipated transaction does not take place. It is normally used in on-line system, to create pre approved (proforma) voucher, without afecting the accounts. It is then regularised after the transaton takes place.

Optional Voucher number is allotted separately, within the voucher Type, and do not clash with regular voucher number. On regularization of voucher, the number is allotted as per Method of Numbering as set for the specific voucher type.

The option for auto creation of Optional Voucher at Voucher Entry is explained at Voucher Type section. Here we explain creation of Optional Voucher and  conversion  between Optional / Regular Voucher through Voucher entry / alteration screen.

Creation of Optional Accounts Voucher  in Tally

At the time of Voucher entry, click L:Optional  button to create an Optional Voucher. An indicative tag Optional appears at the voucher header

Optional Accounts Voucher Creation in Tally

Optional Accounts Voucher in Reports in Tally

Optional Voucher is shown in Day Book with Optional indicative tag shown beside the Voucher Type. But Optional Voucher is  not shown in any other Accounting Reports (like Ledger, Cash Book etc)

Day Book showing Optional Voucher in Tally

Conversion of Optional Accounts Voucher in Tally

To convert from Regular to Optional & Vice versa, at Voucher Alteration screen, clickL: Regular / Optional toggle button.

Memorandum Accounts Voucher in Tally

Memorandm Voucher is a kind of Provisonal Voucher. Memorandum Vouchers (popularly called as Memo Voucher) are dormant vouchers and do not affect accounts until these are transformed into any of the regular voucher type.

To enter Memorandum Voucher, select Voucher Entry and click F10: Memos to get Memorandum Voucher entry screen and enter the Voucher as usual (like a Payment Voucher). The first ledger account must be Debit. The later accounts may be Debit / Credit. So, in case of Receipt of Money, you have to enter the Cash / Bank Account in first entry. A memorandum Voucher may be like a Journal Voucher also (without any Cash Bank Ledger account)

Memorandum Voucher will not be posted anywhere. Later on, when this voucher is converted to any kind of regular voucher (say a Payment Voucher), the voucher will get posted.

Memorandum Voucher entry in Tally

Since, Memorandum voucher is not shown in any Books of Accounts, you cannot see them in any report or Ledger.  You can view pending Memo Voucher, in Day Book only, when you select  F4:Chg Vch and select Memorandum at Voucher Type, to list the existing Memorandum Voucher, if any.

Conversion of Memorandum Voucher

To convert Memorandum Voucher to any Voucher Type, select the Memorandum Voucher in Day Book  and press  <enter>. to get the Memorandum Voucher in alteration mode.

Now click the respective Voucher Type button to which the Memorandum Voucher is to be converted (e.g F5:Payment  to convert the Memo Voucher to Payment Voucher).

You may have to change any offending ledger account to conform to the rules of the voucher type to which the Memorandum Voucher is being converted to. Press Ctl+A to save

Memorandum Voucher vs. Optional Voucher

Memorandum Voucher is much like Optional Voucher. The principal difference is that Memorandum Voucher is a common form of Voucher Type which can be converted to any Voucher Type, whereas Optional Voucher is the dormant state of  a specific Voucher Type. Optional Voucher type is not a Voucher Type. Optional Voucher can be converted to Regular Voucher of that Voucher Type only.

You may then select the Memo Voucher, to convert (regularise), Alter or Delete. Memo Voucher do not appear in In books of Accounts.

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