Tally

Materials Delivery Accounting in Tally

Posted by Asok K Nadhani on

Last Updated on: 5th July 2024, 01:47 pm

Materials Delivery Accounting in Tally

Delivery Challans in Tally

So far we have discussed Invoice entry (Sales/ Purchase Invoice & Debit / Credit Notes) in which Stock and Financial Accounts are simultaneously updated. This is the normal case when Sales / Purchase Invoice or Debit / Credit Notes  are entered when goods are delivered or received. In such case, both Inventory and Accounts are updated through ONE voucher (Invoice)

Sometimes , only movement of goods (Goods In & Goods Out ) are recorded in a voucher  (commonly called Challan) to update the stock but accounting entries are done subsequently at a later date.

In such case, Delivery / Receipt of materials (i.e preparation of Delivery / Receipt Note & Rejection Notes) & Invoices entry (Sales / Purchase Invoice and Debit / Credit  Note) entry are done separately. Normally Challans (materials Delivery / Receipt Notes) are made first and then the corresponding Invoices (Sales / Purchase Invoice), are created, but reverse may occur.

Sometimes sold goods are returned by buyer to seller and a document is created by both parties. The original Buyer makes a Purchase Return (referred by Tally as Rejection Out ), and the original Seller makes  Sales Return (referred by Tally as Rejection In)

As per terms commonly used in Trade, we use the term :

  • Challan to indicate Delivery Challans & Goods Receipt note. Sales Return & Purchase Return are also a kind of Challan, as only Inventory are effected through these types of Vouchers.
    However, Tally uses it own Terminilogy for these types of Documents :
    • Delivery Challan  is referred by Delivery Notes (earlier Delivery Out)
    • Goods Receipt Note is referred by Receipt Notes (earlier Delivery In)
    • Sales Return is referred by Rejection Out
    • Purchase Return is referred by Rejection In
    • Invoice  indicates Sales Invoice & Purchase Invoice.  Debit Note & Credit Note are also a kind of Invoice, as Accounts are  also effected through these types of Vouchers

Materials Delivery Note Tracking Number in Tally

When the Accounting Transaction (Invoice) & Inventory Transaction (Challans ) are recorded at different stages, a common reference is used to Track & Link separate Accounting Transaction (Invoice) & Inventory Transaction (Challans),  This common reference is referred as Tracking Number and  is created recording the first event (e.g Delivery / Receipt Note entry). The subsequent matching entry (the second event) is recorded linking the first entry through the Tracking Number created in the corresponding first transaction. Thus Delivery Note / Receipt Note, Rejection In (Sales Return) / Rejection Out (Purchase Return) Notes may be created first and then corresponding Sales / Purchase Invoices (and Debit / Credit Notes) entered against the earlier Delivery Note / Receipt Note, Rejection In (Sales Return) / Rejection Out (Purchase Return)  Notes, at later stage.  

Sometimes, the transactions may even occur in reverse way. The Invoice may be first created, creating  a new Tracking Number and the Challan is created later linking the earlier Tracking Number

Advantages / Disadvantages of Tracking Number in Tally

Tracking Number is an additional layer of activity, separate Vouchers (Inventory Voucher to affect Stock & Accounts Voucher to affect Accounts), relating to the same set of transactions. When you create an Accounts Voucher (Sale/  Purchase / Debit Note/ Credit Note), without Tracking Number, both Inventory & Accounts are simultaneously affected through One Voucher. No linking / adjustment is needed.

So, you should use Tracking Number only when you have to create Inventory & Accounts Voucher  at different point of time. A few such instances are cited below:

Except in such compelling situations, create an Accounts Voucher (Sale/  Purchase / Debit Note/ Credit Note), without Tracking Number, so that both Inventory & Accounts are simultaneously affected through one Voucher. No linking / adjustment is needed.

Tracking Numbers Creation & Linking in Tally

Before we discuss about creation of Voucher with Tracking Numbers, let us understand the concept of Tracking Number, creation of subsequent Voucher linking the previous Tracking Number and the effects of such linking. In the next chapter, we explain the process of creation of Voucher, with new Tracking Number and linking Pending Tracking Numbers.

Separate Inventory & Accounts Vouchers Creation of same Transaction in Tally

Tracking Number is used to create separate Voucher for Inventory & Accounts Transactions, at different point of time, viz

  • Inventory Voucher : Delivery Challan (or Delivery Note), Goods Receipt Note (Receipt Note), Sales Return (Rejection Out)  Purchase Return (Rejection In)   etc.
  • Accounts Voucher : Sales Invoice, Purchase Invoice, Debit Note, Credit Note, etc

Normally, the Inventory Voucher is created first, the Accounts Voucher is created next and matched with the corresponding Inventory voucher linking both the vouchers. If  both the transactions are done simultaneously (goods delivered and invoice created, Tracking Number is NOT involved, as seen in case of Sales & Purchase Invoice Entry, discussed in earlier chapters. So, Tracking Number is involved only when these transactions occur as separate events.

The First voucher (Challan or Invoice) is created in which a new tracking number is originated (normally Delivery or Rejection Note). The matching second voucher  is  later created (normally Sales / Purchase Invoice or Debit / Credit Note) linking (adjusting) the Tracking Number created in the first voucher (no New Tracking Number is created). These sets of matching vouchers, when fully linked (adjusted), constitute the complete Accounting & Inventory Transactions.

Sometimes, multiple vouchers with different tracking number may be mutually matched (creating implicit link).

Creation & Matching of Tracking Numbers in Tally – Examples

Inventory Voucher created first, subsequently matched with Accounts Voucher

  • Delivery Note created first (Positive Voucher) with New Tracking Number, subsequently matched with Sales Invoice created later (Negative Voucher).
    • Example : Delivery Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Sales Voucher No 8 dt 5.4.12 for 40 Pcs is created adjusting the Tracking Number 1, The transaction is now complete.
    • Example : Delivery Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Sales Voucher No 8 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of  Sales Bills to be made for 15 Pcs . Later on, a Sales Invoice No 11 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Sales Bills to be made.
    • Example : Delivery Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Later on, Delivery Note 8 dt 12.4.12 for 20 Pcs created with Tracking Number 6. A Sales Voucher No 15 dt 30.4.12 for 60 Pcs is created adjusting the both Tracking Numbers 1 & 6, The transaction is now complete.
  • Receipt Note created first with New Tracking Number, subsequently matched with Purchase Invoice created later
    • Example : Receipt Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Purchase Invoice No 5 dt 5.4.12 for 40 Pcs is created adjusting the Tracking Number 1, The transaction is now complete.
    • Example : Receipt Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A  Purchase Invoice No 5 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of  Purchase Invoice to be made for 15 Pcs . Later on, a Purchase Invoice No 8 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Purchase Invoice to be entered.
    • Example : Receipt Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Later on, Receipt Note 8 dt 12.4.12 for 20 Pcs created with Tracking Number 6. A Purchase Invoice No 15 dt 30.4.12 for 60 Pcs is created adjusting the Tracking Number 1 & 6, The transaction is now complete.
  • Rejection In (Sales Return) created first  with New Tracking Number, subsequently matched with Credit Note created later
    • Example : Rejection In (Sales Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Credit Note Voucher No 5 dt 5.4.12 for 40 Pcs is created adjusting the Tracking Number 1, The transaction is now complete.
    • Example : Rejection In (Sales Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Credit Note Voucher No 5 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of Credit Note to be made for 15 Pcs . Later on, a Credit Note No 8 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Credit Note to be made
    • Example : Rejection In (Sales Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Later on, Rejection In (Sales Return) # 8 dt 12.4.12 for 20 Pcs created with Tracking Number 6. A Credit Note No 15 dt 30.4.12 for 60 Pcs is created adjusting the Tracking Number 1 & 6, The transaction is now complete.
  • Rejection Out (Purchase Return) created first with New Tracking Number, subsequently matched with Debit Note created later
    • Example : Rejection Out (Purchase Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Debit Note Voucher No 5 dt 5.4.12 for 40 Pcs is created adjusting the Tracking Number 1, The transaction is now complete.
    • Example : Rejection Out (Purchase Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. A Debit Note Voucher No 5 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of  Debit Note to be made for 15 Pcs . Later on, a Debit Note No 8 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Debit Note to be made
    • Example : Rejection Out (Purchase Return) # 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Later on, Rejection In (Sales Return) # 8 dt 12.4.12 for 20 Pcs created with Tracking Number 6. A Debit Note No 15 dt 30.4.12 for 60 Pcs is created adjusting the Tracking Number 1 & 6, The transaction is now complete.

Multiple Tracking Number Matching  in Accounts Voucher in Tally

Following examples show how Multiple  Inventory Vouchers  (Challans) are first mutually adjusted among themselves and then adjusted against Accounts Voucher  (Invoice):

  • Delivery  Note / Rejection In & Sales Invoice  : Delivery Note is created first with New Tracking Number. Subsequent Rejection In (Sales Return) is adjusted against the Delivery Note. The adjusted Delivery Note is subsequently matched with Sales Invoice created  for Net Quantity.
    • Example : Delivery Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Subsequently Rejection In (for Sales Return by the customer) # 5 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of Sales Invoice to be made for 15 Pcs. Later on, a Sales Invoice No 8 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Sales Bills to be made
    • Example : Delivery Note 1 dt 1.4.12 for 30 Pcs created with Tracking Number 1. Rejection In (Sales Return) # 5 dt 5.4.12 for 12 Pcs is created  with new Tracking Number 9.Further,  Rejection In (Sales Return) # 8 dt 5.4.12 for 8 Pcs is created  with new Tracking Number 12. At this stage, there is a balance of  Sales Bills to be made for 10 Pcs . Later on, a Sales Invoice No 8 dt 12.4.12 for 10 Pcs is created adjusting the Tracking Number 1 with Tracking Number 9 & 12. The transaction is now complete and there is no balance of  Sales Bills to be made. This shows that several Tracking Numbers may be mutually linked & adjusted.
  • Receipt  Note / Rejection Out & Purchase  Invoice :  Receipt Note is created first with New Tracking Number. Subsequent Rejection In (Sales Return) is adjusted against the Receipt Note. The adjusted Receipt Note is subsequently matched with Purchase Invoice created  for Net Quantity.
    • Example : Receipt Note 1 dt 1.4.12 for 40 Pcs created with Tracking Number 1. Rejection Out (Purchase Return) # 5 dt 5.4.12 for 25 Pcs is created adjusting the Tracking Number 1. At this stage, there is a balance of Purchase Bills to be made for 15 Pcs . Later on, a Purchase Invoice No 8 dt 12.4.12 for 15 Pcs is created adjusting the Tracking Number 1. The transaction is now complete and there is no balance of  Purchase Bills to be made
    • Example : Receipt Note 1 dt 1.4.12 for 30 Pcs created with Tracking Number 1. Rejection Out (Purchase Return) # 5 dt 5.4.12 for 12 Pcs is created with new Tracking Number 9.Further,  Rejection Out (Purchase Return) # 8 dt 5.4.12 for 8 Pcs is created  with new Tracking Number 12. At this stage, there is a balance of Purchase Bills to be made for 10 Pcs . Later on, a Purchase Invoice No 8 dt 12.4.12 for 10 Pcs is created adjusting the Tracking Number 1 with Tracking Number 9 & 12. The transaction is now complete and there is no balance of  Sales Bills to be made. This shows that several Tracking Numbers may be mutually linked & adjusted.

The above instances show creation of Inventory Voucher First and then matching with Accounts Voucher. However, the reverse may also happen. Accounts Voucher created first may be matched with Inventory Voucher, as explained later through examples

Tracking Numbers Linking in Accounts Voucher in Tally

When a transaction is recorded through Delivery Note, it effects stock only but not accounts.

We now explain general concept & process of how to link Challans (Delivery, Receipt, Sales Return, Purchas Return) having pending tracking numbers against the respective Invoice (Sales & Purchase Invoice, Debit or Credit Note) and vice versa.

During Invoice entry, in the Party Details sub-screen at Delivery Note No. prompt, you get the List of Tracking Numbers showing:

  • All pending tracking numbers for the selected Party & Item showing the balance quantity not yet adjusted
  • New Number,
  • Not Applicable.

To terminate entry of Tracking Numbers, select End of List

When you  create a voucher, the pending Tracking Numbers for the Party will be listed. The current voucher number will be carried as default at Tracking Number. Now you may :

  • Pending Tracking Number: Select a pending Tracking Number from the list, to adjust the current voucher to the already existing pending tracking number. For example, the first new tracking number  5 was for 6 Pcs Delivery In. The current voucher is for :
    • 4 Pcs Delivery In, you may select the pending Tracking Number 5. Then the pending quantity against Tracking Number 5 will become 10Pcs (6+4).
    • 1 Pcs Delivery Out, you may select the pending Tracking Number 5. Then the pending quantity against Tracking Number 5 will become  5 Pcs (6-1).
    • 1 Pcs Sales Return (Rejection In), you may select the pending Tracking Number 5. Then the pending quantity against Tracking Number 5 will become  7 Pcs (6+1).
    • 1 Pcs Purchase Return (Rejection Out), you may select the pending Tracking Number 5. Then the pending quantity against Tracking Number 5 will become  7 Pcs (6-1).
  • New Tracking Number: You may create a New Tracking Number for the current voucher in 2 ways:
    • Default Number: The current Voucher Number is carried as default Tracking Number. Press <enter> to select it. A new tracking number with the current voucher number is created. This is the recommended method as it will be easier to link the pending Tracking Number through the common Voucher Number.
    • Your own new Tracking Number: Select New Number and the enter an unique new Tracking Number. In such case, the Tracking Number is different from Voucher Number. This is useful when you cross link  any pending tracking number.

 A new Tracking number is created which is to be adjusted against Pending Tracking Number in later voucher, as explained above.

Now, we explain the concept of creation of new Tracking Numbers & matching of Pending Tracking Numbers, through a few examples.

Challan entry first, Invoice creation later in Tally

Often, Challan (Delivery Note) is created first, which affects only Inventory (and not Accounts). At the time of preparation of Challan, a New Reference of Tracking Number is created when the goods move out.

Later on, when the corresponding Sales Invoice is entered, the tracking Number (earlier created in the Challan) is selected. This affects accounts also and links the two documents through the common Tracking Number. The transaction is now complete in respect of Stock & Inventory and both documents are linked properly.

This is the normal procedure of using Delivery Out voucher and making Sales Invoice later on (One Invoice may be linked with several Delivery Out vouchers). In the same way, Delivery In vouchers may be created with New Tracking Number and then linked with Purchase Voucher.

In the same way, Rejection In (Sales Return) / Rejection Out (Purchase Return) vouchers may be created with New Tracking Number and then linked with Credit Note and Debit Notes.

Example:

10 Nos. of Maxell CD @ 110/- are sold to Ramamurthy Computers on 30th June. A Delivery Note is entered, and a New Tracking Number (say T/133) is entered at the Tracking No. field. This will reflect stock out (but will not affect accounts, i.e., neither Ramamurthy Computers account will be debited nor Sales account will be credited).

On 5th July, Sales Invoice for the above delivery (to effect accounts only) is entered. At Tracking No. field, the pending Tracking Number (T/133) is selected to update accounts only (stock already updated on 30th June).

These two documents make the entry complete in respect of stock movement & accounts linking each other.

If, at Tracking Number, instead of selecting the earlier Tracking No.(T/133 in this instance), if you select

  • Not Applicable :Tally will once again effect the stock (so there will be double stock out) and the Tracking No T/133 will remain pending.
  • New Number : Tally will create another Sales Invoice (without affecting Stock) and the Tracking No T/133 and the new Sales Invoice will remain pending for adjustment.

So, clearly understand the implications and select the correct option as perthe nature of transaction. Otherwise serious accounting / stock mistakes might occur.

Instead of creating a Sales Invoice for the entire quantity of pending Challan, you may create a Sales Invoice for part quantity and then another Invoice for balance quantity.  You may continue creating Invoices until the entire quantity of pending tracking number is adjusted.

For example, in Sales Invoice of 5th July, you may enter 6 Nos against Tracking Number T/133 (select Tracking Number T/133 and enter 6 Pcs at Quantity). In such case,  4 Pcs will remain as pending to be billed. You may create another Sales Invoice later against Tracking No T/133 (select Tracking Number T/133 and enter 4 Pcs at Quantity) to create the Sales Invoice for 4 Pcs. This way, 2 invoices of Quantity 6 Pcs & 4 Pcs respectively will be created for the 10 Pcs delivered.

In the same way, you may create one Sales Invoice against several Pending Tracking Numbers. For example, you create Delivery Challans on different dates in July, for 10 Pcs, 12 Pcs & 8 Pcs. On 31st July, you create an Invoice and select the 3 pending tracking numbers, to create an Invoice of 30 Pcs, adjusting all the 3 pending tracking numbers.

Let us assume, you create Delivery Challan with Tracking # 12 on 3rd July, for 10 Pcs. When you create next Delivery Challan dt 5th July for 12 Pcs, for the same Party, in the selection list, the pending Tracking Number 12 will be listed. Now you may :

  • Select the Pending Tracking # 12:  In that case the pending quantity for Tracking Number will become 22 Pcs
  • Enter  new Tracking Number (say 21): In that case, two pending Tracking Number will be shown, Tracking # 12 for 10 Pcs & Tracking # 21 for 12 Pcs (Total Pending Quantity 22 Pcs)

Now, you may create Sales Invoice linking the pending Delivery Challans as follows:

Invoice creation first, Challan creation later in Tally

Likewise, you can create Invoice first, creating a new Tracking Number. This affects Account only (but not Inventory),. Later, enter Delivery Challan to effect Inventory and link the pending Tracking Number that was created in Invoice. This affects Inventory also and links the two documents through the linking Tracking Number. The transaction is now complete in respect of Stock & Inventory and both documents are linked properly.

Example:

Hanooman Mills sells varieties of Jute Goods. They first enter Sales Invoice and give a copy of the Invoice to the customer (goods are to be delivered later on). The customer produces the Invoice at the company’s godown to take delivery of goods. A Delivery Note is created which is linked to the tracking number created in the related Invoice.

Let us explain the entry through an example.

First create a Sales Invoice (say G/15 dt 1st June). Select New Number at Tracking Numbers and select the current Invoice Number (G/15) from the list of tracking number and enter Item details. Print the Invoice.

The customer now presents the Invoice to Godown keeper, who creates a Delivery Note (D/98 dt 3rd June). At Tracking number, select the pending tracking number (G/15). In this way, several Delivery Notes (even of different dates) may be linked against the Invoice, through Tracking Number G/15.

Delivery Quantity and  Invoice Quantity Mismatch in Tally

When Delivery is made first, the invoice is made for the quantity delivered matching the invoice & delivery quantity. But when Invoice is made first and delivery is made later in one stage or in multiple stages), the delivery quantity may differ due to various reasons :

We explain the process in such situation. First the invoice is prepared for 50 Kg (Rs 100 per Kg – Rs 5000), with a new tracking number (e.g D/95).

Now the delivery is made. Two situations may arise :

  • In such case, create the delivery note for actual quantity delivered (e.g 48.5 kg) and link the delivery note with tracking number (D/95). Now there will be a Delivery Note of 48.5kg (the actual delivery quantity. So, the stock properly adjusted by the actual quantity delivered, but the sale is overstated by 1.5 Kg (50- 48.5). So, we have to adjust the sale without further affecting the Stock. To do that, create a Credit Note Voucher for the value of 1.5 Kg (Accounts voucher without Inventory) for Rs 150 (1.5 kg @ 100). adjusting the Tracking Number D/95. No Inventory details are to be entered (Credit Note voucher in Voucher mode without Inventory details), as explained earlier

Consequently the Party is debited with Rs. 48500 (Sale Invoice 50000 & Credit Note Rs 1500), for 48.5 Kg @ Rs. 100 / Kg and the Tracking Number is fully adjusted.

  • : Let us assume that the Bale delivered weighs 51.2 Kg. Now create a Delivery Note (for 51.2 Kg) and adjust against the earlier Invoice of 50 Kg (G/15). Now create another Sales Invoice (G/21) for 1.2 Kg (51.2 – 50) for Rs 1200 (1.2 Kg @ 100), selecting the same Tracking Number  D/95. The stock is adjusted by 51.2 kg through the delivery challan and is adjusted against the Invoice  of 50 kg  and another Sales Vocher of 1.2 Kg (Tracking Number D/95) is also fully adjusted. The Party account will be debited by Rs 51200 (Rs 50000 + 1200)

Inter Challan Adjustment and linking in Tally

Tracking Number is also used to link one type of challan with another type of pending challan(s). For example, Purchase  Return (Rejection Out)  linking pending goods Receipt Note, Sales  Return (Rejection In) linking Delivery Note, etc, to mutually offset the deliveries & returns of goods.

A K Paper purchases 10 Pcs of Ball Bearings from P K Stores and creates a Receipt Note 10 Pcs.. Later on it returns 3 Pcs defective under Rejection Out Note. Now he enters Purchase Invoice for 7 Pcs. and links the Receipt Note (10 Pcs) and Rejection Out (Purchase Return)  for 3 Pcs

The entry can be made in 2 ways, with different way of adjustment of tracking number, though the result will be same

Method 1 : Adjust the Rejection Out (Purchase Return) against the original Receipt Note through the same tracking number.

In this method, first create the Receipt Note (Voucher Number & Tracking Number REC/53), for 10 Pcs.

Next create the Rejection Out (Voucher Number R/58) and select the Pending Tracking Number of  the earlier Receipt Note ( REC/53). So, one Receipt Note voucher for 10 Pcs and one Rejection Out (Purchase Return) voucher for 3 Pcs is created. The pending unbilled quantity for the Receipt voucher REC/53 is 7 Pcs (not 10 Pcs, as 3 Pcs has already been adjusted.)

Now, create a Purchase Voucher (for 7 Pcs) and select the pending Tracking number REC/ 53). Thus, the Receipt Note and the Rejection Out (Purchase Return) voucher gets adjusted against the Purchase Invoice.

Method 2 : Adjust the pending documents in the Invoice.

In this method, first create the Receipt Note (Voucher Number & Tracking Number REC/53, for 10 Pcs). Next create the Rejection Out (Voucher Number & Tracking Number RET/68) for 3 Pcs.  Now there are 2 pending Tracking Number, REC/53 for 10 Pcs Receipt Note and RET/68 for 3 Pcs Rejection Out.

Now, create a Purchase Voucher  P/127 and select both the pending Tracking Numbers REC/53 for 10 Pcs Receipt Note and RET/68 for 3 Pcs Rejection Out (Purchase Return). i.e Net  7 Pcs  Receipt. Now both the Pending Tracking Numbers will be adjusted and a Purchase Voucher P/127 for 7 Pcs will be created.

Rej. In/Out voucher creation first, Credit / Debit Note creation later

A K Paper has purchased Ball Bearings from P K Stores, from time to time. Purchase Invoices has been duly entered and there is no pending Tracking Number. Now it returns 3 Pcs of defective Bearings. Now, you may :

Using Tracking Number : Create a Rejection Out (Purchase Return) Voucher  with Voucher & New Tracking Number (REJ/13). Later on, it creates a Debit Note (D/12) and selects the pending tracking number (REJ/13) to link with the Rejection Note. So, a Debit Note D/12  on P K Stores in the books of A Paper is created. There is no pending Tracking Number Tracking Number REJ/13 is fully adjusted). In such case, 2 Vouchers are created, One Rejection Out (Purchase Return) Voucher REJ/13 and a Debit Note D/12

Invoice Voucher Entry without Tracking Number

If the Invoice (Purchase/ Sales Invoice, DN/CN) is being created at the time of movement of Goods (Delivery In/Out, Rejection In (Sales Return)/Out), select Not Applicable at Tracking Number field. This happens when you create an Invoice at the time of sale.

By this process, stock and ledger accounts are simultaneously updated. So, no pending tracking numbers is created. This is similar as Invoice entry when Tracking Number is NOT activated, as explained in earlier chapters so far.

 Let us look at the cases described above.

Case 1 : Purchase for 10 Pcs and subsequent Purchase Return for 3 Pcs.

Create Purchase Bill  P/127 for 10 Pcs (at Tracking Number, select Not Applicable) when goods are received. Later on, Create Debit Note  D/91 for 3 Pcs (at Tracking Number, select Not Applicable). You get a Purchase Bill P/127 for 10 Pcs & Debit Note  D/91 for 3 Pcs. There are no pending Tracking Number.

Now you may make accounting adjustment of Purchase Bill  P/127 & Debit Note D/91 at the time of entering Payment Voucher for the net amount of Purchase Bill & Debit Note

Case 2 : Purchase Return for 3 Pcs. No  pending Tracking Number exists

Create a Debit Note D/12 (select Not Applicable at Tracking Number).  So, a Debit Note D/12  on P K Stores in the books of A Paper is created. There is no pending Tracking Number (No Tracking Number created). In such case, only Voucher (Debit Note D/12) is created.

View PDF