Invoice Entry in Tally

Sales Invoice in Tally

Invoice is the most Important document of a Trader in which details of transactions and all related information are recorded. Invoice contain many additional details in well organized formatted manner for clarity.

In Invoice entry, only the basic data of computation (Rate, Quantity, Discount % etc) is entered. The computation of Invoice automatically gets done during entry.

We have explained Inventory Voucher Entry in Voucher form. In this chapter, we discuss Invoice Entry (Inventory Voucher in Invoice Mode).

Invoicing Features Activation in Tally

Invoicing Features Activation in Tally

To enter Sales, Purchase, Debit Note & Credit Note in Invoice format, activate Invoicing Feature. Click F11:Features>Inventory Features. At Invoicing section, set as follows :

  • Activation of Sales Invoicing : Set Yes at Allow Invoicing to enter Sales Invoice in Invoice Format. Set No, only voucher entry mode would be available for Sales & Purchase transactions.
  • Activation of Purchase Invoicing : Having set Yes at Allow Invoicing, you may further set Yes at Enter Purchases in Invoice Format, to allow entry of Purchase Transaction in Invoice mode also. So, Purchases transaction can be entered in Invoice format, only when Sales Invoice format is activated
  • Activation of Debit & Credit Notes : To enter Debit Note & Credit Notes, set Yes at Use Debit Credit notes. Set No, Debit Credit Note Voucher entry  buttons will not be available during Voucher entry. So, Debit Credit Note Voucher cannot be entered if  this option is not set.
  • Activation of Debit Note in Invoice Format :   Having set Yes at Use Debit / Credit Notes, you may further set Yes at Use Invoice Mode for Debit Note  to allow entry of Debit Note in Invoice Format also. Set No, only voucher entry mode would be available for Debit Notes.
  • Activation of Credit Note in Invoice Format :   Having set Yes at Use Debit / Credit Notes, you may further set Yes at Use Invoice Mode for Credit Note  to allow entry of Credit Note in Invoice Format also. Set No, only voucher entry mode would be available for Credit Notes.
  • Activation of Discount Column : Having set Yes at Allow Invoicing, you may set Yes at Separate Discount Column on Invoices, to get an additional column to enter Discount Rate in Invoice mode entry. Set No, the Discount column will not be created.

Invoice Entry in Tally

At Gateway, select Accounts Voucher and click the respective Voucher button from the button bar, to get the Voucher entry screen. Click V:As Invoice & I:Item Invoice buttons (if you are in Voucher mode) get Invoice Entry screen. We discuss about additional entries for Invoice Mode.

Sales / Purchase Accounts Ledger : Here you select Sales Ledger (For Sales Invoice) or Purchase Ledger (For Purchase Invoice), The Item value of all the Items in the Invoice is allocated to the specified  Sales / Purchase Ledger Account.

Purchase Invoice Entry in Tally

Item Details Entry : Now enter the Item details as explained below:

  • Item Name: At Name of Item column, select the Item Name
  • Item Quantity: At Quantity column,  enter the Item Quantity. The Item Quantity UoM is displayed along side.
  • Item Rate: At Rate column,  the Item Rate per UoM as entered in Item Master, if any, is carried (which you may change), else enter the Item Rate per unit. The Rate unit (UoM) is displayed alongside.
  • Item Discount Rate: If Discount column has been activated, at Disc% column, enter the Discount Rate (in %).
  • Item value: The computed Item value (after Discount. If any) is displayed at Amount column, which you may change.

This way, enter Item details for all the Items. To terminate Items entry, press <enter> at Name of Item to enter Accounting Allocations (Ledger Account details), as explained below:

Ledger Account details :Now you may enter details of other ledger accounts (like Discount, Freight etc):

  • Ledger Account: Select the Ledger Account from the list.
  • Ledger Amount: Enter the Amount (to reduce the amount, enter in negative figure).

Sales Invoice Entry in Tally

Supplementary Details : At  Invoice / Orders Configuration screen, if you have set Yes at Accept Supplementary Details, you get Supplementary details entry screen, to enter relevant Invoice Information to be printed in the Invoice.

Sales Purchase Ledger Account : If you have set No at  Use common Ledger Account for Item Allocation, you will get the prompt to select sales Purchase Account after entry of each Item details, instead of selecting at Header. The value of the Item entered in Item allocation screen for the Item is carried .

You may enter multiple Sales / Purchase Account to allocate the Item value over multiple Accounts. The total of all accounts must be equal to the Item value  which is allocated to Ledger Accounts

Sales / Purchase Account selection in Invoice entry in Tally

Invoice Entry Configuration in Tally

At Invoice entry screen, Click F12: Configure to get Invoice Configuration screen. We explain the following Important options that you may often require to set up.

Invoice Entry Configuration in Tally

  • Party Address : When you set No at Accept Supplementary Details (i.e. when Supplementary Details of Buyer, Seller, Consignor, Consignee and other particulars are not entered), set Yes at Print Default Name & Address of the Party, to print the Part Address in the Invoice, as recorded in Party master. Set No, the Party Address is not Printed in Invoice (only Party Name is printed).
  • Sale / Purchase Ledger Account : At Use common Ledger A/c for Item Allocation, set Yes to specify only one Ledger Account for sales / Purchase, to which he value of all the Items in the invoice is posted to. In such case, you get the prompt to enter Sales / Purchase Account, once in the header only. This is convenient in cases where an Invoice relates to only one Sale / Purchase account.

Set No, to select Sales / Purchase Ledger Account after entry of each Item details. This option is to be set when Item values are allocated to multiple Sales / Purchase Ledger Account

Discount Entry in Invoice in Tally PRIME

Discount means some reduction in price offered by seller to customer. To allow Discount against each Item in Invoice, click F11 to get Company Features. Under Inventory section,set Yes at Use Discount Column in Invoices. Consequently, you get Discount column during Invoice entry .

Company Features set up for Discount Entry in Invoice

At Item allocation screen, enter Discount Rate (in %) at Discount column against the respective Item. The computed Net Amount (Product value less Discount) is displayed at Amount column.

Invoice Entry with Item Discount

On entry of Stock Item, the Item allocation screen appears to enter the details of each Item. This is carried in main voucher entry screen against respective Item. This way, continue to enter Discount for the Items.

Item allocation in Invoice entry with Discount

Visit for more info on Invoicing using Tally

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