Invoice Class in Tally

Invoice Class in Tally

Inventory Vouchers creation requires lot of data entry, involving repetitive steps and process. We have explained Voucher Class for Basic Accounting Vouchers ( like Receipt, Payment , Contra) earlier (§02/02-08). Here, we discuss Invoice Class for Sales, Purchase, Debit & Credit Notes.

Through Voucher Class, the recurring tasks and standard values may be pre set to make voucher entry process faster, accurate and secure. Voucher Class helps to automate transaction entries, minimize errors and manipulations. For example, Sales Account, Prices, Discounts, Tax computations, Account Allocations etc., may be pre-defined in the Voucher Class and need not be entered each time in Invoice. The Voucher Class (for Sale/ Purchase Invoice, Debit / Credit Notes) internally provides all the values as per parameters set for.

Invoice Class creation in Tally

Voucher class can be used in Invoice Mode only. So, at Company Features, set the Voucher entry in Invoice Mode (§03/ 03-02/S1)

Invoice  Class Creation in Tally

Voucher Class is created through Voucher Type creation screen described earlier (§02/02-08). At Gateway, select Accounts Info>Voucher Type>Create (or Inventory Info>Voucher Type>Create) to get Voucher Type creation screen .  Fill up all information to create a voucher type. as described (§02/02-08).

At Name of  Class , type Voucher Class Name to be created, to get the Voucher Class set up screen for the respective Voucher Type, Sales , Purchase , Debit Note & Credit Note , as specified at Voucher Type creation screen

The voucher Class creation screen contain following components

  • Excluded Groups
  • Included Groups
  • Default Accounting Allocation for Items
  • Additional Accounting Allocation for other ledger accounts

Accounts Group / Ledger Inclusion / Exclusion in Invoice Class in Tally

At the Exclude / Included Group, for the Party Accounts. Specify the respective Account Groups. Ledgers under  Excluded Group will not be listed in Party Accounts, while Ledgers under  Excluded Group will be listed in Party Accounts

Specify as follows :

  • Excluded Groups in Invoice Class : Here, select the Account Groups to be excluded for Party Ledger Accounts. Consequently, in the Party Ledger field in Sales Voucher entry, the ledgers under the selected Group will not be available.
  • Included Group in Invoice Class : Here, select the Account Group for inclusion.

For example, to create a Sales Voucher class for Credit Customers, select Sundry Creditors (to exclude Suppliers), Cash & Bank Account Groups (to exclude Cash Sales) and select Sundry Debtors & Branch Divisions in the included Groups. However, if you have several Groups of Customers, Local and several other groups for each territory, for a sales voucher class exclusively for Local Customers, select Sundry Debtors at Excluded Group and select Local Customers Group at Included section

Accordingly, enter Account Groups in Excluded / Included section , for Purchase Voucher Class

Accounting Allocations in Invoice Class in Tally

In the next part, specify accounting allocations of Item Value to ledger under Sales / Purchase Group .

Sales  Invoice Class set up in Tally

  • Ledger Name : At Leger Name column, select the Ledger Accounts The first ledger should be a Sales / Purchase Account (an Inventory linked ledger account).
    If the Item Value is to be allocated into multiple Ledgers, you may select other accounts (other than Inventory Linked Accounts) in the next lines.
  • Percentage: At Percentage % column, enter the allocation percentage for each Ledger Accounts entered in this area.
    For example, to allocate the Sales value into Sales Account and Sales Tax (8%), select Sales Account and enter 92.59 % (1/1.08).
    In the next Account, select Sales Tax A/c and enter 7.41% (.08/1.08).
    The total percentage of all allocated Ledgers must be 100
  • Rounding Method & Rounding Limit : This is applicable when Item Value is allocated to more than one ledger account. You can specify Rounding method from the list and then specify the corresponding limit
    Rounding Method : At Rounding Method columns, select
  • Normal : To round off to nearest amount of the limit,
  • Upward : To round off to next higher rounding,.
  • Lower : To round off to next lower rounding,
  • Not Applicable : Not to apply any rounding

Rounding Limit
If you selected any Rounding method, at Rounding Limit,  specify the corresponding rounding limit to be rounded to.
You cannot specify Rounding Methods for the last ledger account specified. Its value will be computed as the balancing figure.

Invoice Class Rounding Method set up in Tally

Item Default Overriding : This is applicable only to the first Inventory linked Ledger account (i.e. the Sales Ledger Account). At the column Override using Item Default, set :

  • Yes to post to the Sales Ledger Account linked with the stock Item as default,.
  • No to enter Ledger Account during Voucher entry,

For example, Sales Ledger A/c 4% is linked with Item A and  Sales Ledger A/c  12% is linked with ledger B. you like to select the Ledger Account linked with the Item. In such case, at Default Item Allocation of Item part, you may select any Ledger  Account  (either Sales Ledger A/c 4%  or Sales Ledger A/c 12% and set Yes at the option Override using Item default. Consequently, The ledger account as specified in Item Master will get selected irrespective of the ledger account specified in the voucher class.

Tips : At the column Override using Item Default , set :

  • Yes when the Item Value is to be posted to a specified ledger accounts for every type of Sale (i.e the Item value for the respective Item is to be posted to a specified Sales Ledger Account in respect of every type of Sale)
  • Set No when the Item Value is to be posted to different Ledger Accounts in different Sales Voucher

Additional Accounting Entries set up in Invoice Class in Tally

At this part, specify Duties, Taxes and Other Charges levied in the Invoice. Select the Ledger Account. For the additional charges :

Calculation Method in Invoice Class set up in Tally

Calculation Method set up in Invoice Class in Tally

Select a Method of Calculation from the following 

  • On Item Rate
  • On Total Sales
  • As Surcharge 
  • As Additional Excise
  • On Current Sub Total

And any of the following methods available exclusively in Voucher Class only

  • As a Flat Rate: Here you may specify a fixed amount which will be included in the invoice irrespective Sales value or any other amount.
  • Based on Quantity: Select it when the value is to be computed on total quantity of all the Items in the invoice (irrespective of UoM of the Items).
  • As User Defined Value: Select it when the amount is to be entered in the Invoice (no computation by Tally).
  • As Total Amount Rounding: This is selected as a last Item to allocate the fractional figure of the Total Invoice value to round off the Net Amount of the Invoice.

Value Basis
Here enter the Rate (or ser defined value) as specified in the Method of Calculation, specified in the previous column.

  • Rounding Method & Rounding Limit : You may also specify the Rounding Method and Rounding limit as explained above.
  • Remove if Zero: Set Yes to suppress printing of ledger account name in the invoice, for which the amount is zero, else set No, to print the ledger name even for zero amount (useful when preprinted stationary is used).

Purchase  Invoice Class creation set up in Tally

Credit Note Voucher Class in Tally

Credit Note class can be created in relation to Rate Difference, Rebates, Sales Returns and also for Interest Accounting.

In Credit Note Class screen, set No at Use Class for Interest Accounting

The rest part of the Credit Note Class screen is similar to Sales Invoice Class. Like Sales Invoice Class, you may allocate Sales Value to multiple Accounts in the Voucher Class.

Credit Note Voucher Class set up in Tally

Debit Note Voucher Class in Tally

Debit Note class can be created in relation to Rate Difference, Rebates, Purchase Returns and also for Interest Accounting (§10/03-09/S1).

In Debit Note Class screen, for other than Interest, set No at Use Class for Interest Accounting.

The rest part of the Debit Note Class screen is similar to Purchase Invoice Class. Like Purchase Invoice Class, you can not allocate Purchase Value to multiple Accounts in the Voucher Class.

Debit Note Voucher Class set up in Tally

Ledger allocation for Item value in Invoice Class in Tally

Sometimes, the Item Sales value may be allocated to more than one account. For example, if the sales value includes local Tax (for example a certain % is charged for local trade association, whose rate differs from Item to Item), then the amount may be split among multiple ledger accounts like Sales Account & Tax Account. In such case, the Sales Value may need to be allocated to Sales & Sales Tax ledgers.

Activating Item Allocation to Ledger Accounts in Tally

To enable the feature of specifying the default ledger allocation in Stock Item Master, at Accts / Inv Info configuration, set Yes at the option. Specify Default Ledger allocation for Invoicing

Consequently, during Item Master entry, you get an option Set Modify Default Ledgers for Invoicing to specify default ledger allocation for  such Inventory linked Sales / Purchase Ledger Accounts, to set :

  • Default Accounting Allocations for Sales Invoice
  • Default Accounting Allocations for Purchase Invoice

First activate the allocation option in allocable ledger Accounts

Allocable Ledger Accounts

Now specify the allocation percentage in the respective area, as follows :

  • Ledger Account: At Ledger Name, select the Ledger Account (Sales / Purchase) to which the Stock value will be allocated.
  • Allocation Percentage: At Percentage % column, enter the percentage allocated to the Ledger Account.
  • Rounding Method : Select the Rounding Method
  • Rounding Limit : If Rounding Method is selected, enter the Rounding Limit.

This way, enter all the ledger accounts to which the Item Value to be allocated. The Total allocable percentage should be 100. In the last ledger account, the Rounding Method is not asked. The balance amount is posted to the last account to avoid rounding of errors.

Default Ledger Allocation for Stock Item value in Invoice Class in Tally

This option is useful to allocate sales / purchase value to product value, Local Tax, Agency Commission, or other amount included in Sales / Purchase Value.

Click here to see PDF