Tally Accounting
Posted by Asok K Nadhani on

Materials Purchase and Sales Orders in Tally

Materials Sales and Purchase Order  in Tally

Materials Orders are Trade Contracts for transactions between the Seller & Buyer. Ordering System helps better inventory control & impart better planning and control for Sales & Purchase Activities,

Orders are pre-Invoice documents. You may prepare Invoices even without incorporating ordering system. Orders do not affect Inventory (i.e., have no effect on stock) or Accounts.

The Order issued by Customer on Supplier is called Purchase Order, while the Order issued by Supplier on Customer is called Sales Order. Normally, Purchase Order is issued by Customer on Supplier (customer enters as Purchase Order). The Supplier accepts it and records the Customer’s Purchase Order as its own Sales Order (Supplier enters as Sales Order). However, the sequence may happen in reverse order (the Supplier issues Sales Order on Customer. Customer accepts it and records as its Purchase Order).

Main Menu with Orders Option

Materials Sales and Purchase Ordering System in Tally

  • Ordering System facilitates better control on procurement & sales activities & Inventory management
  • Ordering System  ensures implementation of production / purchase & Sale Plan, as the sale / purchase contracts (Orders) are guided and followed by such plans
  • Order system ensures proper Invoicing  as the Rates & Order Quantity is specified and authorised by proper authority.

Materials Sales and Purchase Ordering System Activation in Tally

To activate Order System, Click F11:Feature>Inventory Feature and set the options as follows :

  • Set Yes at Allow Purchase Order processing to activate Purchase Orders. Consequently, F4: Purchase Order button would also appear at Inventory Voucher Entry screen to enter Purchase Orders

– Set Yes at Allow Sales Order processing to activate Sales Orders. Consequently, F5: Sales Order button would also appear at Voucher Entry screen(F-3A) to enter Sales Orders

You may set Yes at either, both or at none of the above two order processing options, as required. On activating Order, Order Vouchers  option appears in Main Manu of Gateway of Tally, to enter  Sales / Purchase Order.

Order System Activation

Materials Sales and Purchase Orders Entry Buttons in Tally

At Order entry screen, click  F4:Purch Order to get Purchase Order Entry screen, F5:Sales Order to get Sales Order Entry screen

Materials Order Entry buttons

Materials Purchase Order Entry in Tally

At Main Menu, select  Order Vouchers, Click F4: Purc. Order button, (or press Alt+F4) to get Purchase Order entry screen, quite similar to Purchase Invoice Entry screen.

Purchase Order entry in Tally

The Purchase  Order entry screen may be divided in following components :

  • Header Part
    • Party A/c Name
    • Order Number
    • Supplementary Details
    • Purchase Account
  • Item Details
    • Item Name
    • Item Allocation
  • Other Ledger Accounts
  • Voucher Narration

Purchase Order Header Part Entry details in Tally

In Header Part , enter the details common to the entire Purchase Order, as follows :

  • Party’s A/c : At Party’s A/c Name, select the Supplier Name from the list of Supplier  Ledger Accounts
  • Order  Ref : At Order No. enter your Purchase Order Reference (or Party’s Reference ) as Order Reference (the Order Voucher Number is carried as default, which you may change). All the subsequent documents (like Receipt Note, Invoice etc ) are linked through Order Reference Number  (not the Order Voucher Number) and pending Order Reports  are listed as per the Order Reference Number so entered.

Purchase Order Supplementary Details Entry in Tally

If you have set Yes at Accept Supplementary Details at Delivery Note / Orders / Invoice configuration, then the Supplementary entry screen appears to enter the order related details:

Purchase Order Supplementary Details entry in Tally

  • Supplier Details
  • Purchase Order Details
  • Despatch Details

Purchase Order Supplier Details Entry in Tally : Enter the following  Supplier’s  Details.

  • Supplier Name : The Party Name is carried by default, which you may change
  •  Address : The Party Address is carried as default, which you may change
  • TIN / Sales Tax Number : The TIN / Sales Tax Number entered in Party Master, if any, is carried which you may change
  • Type of Dealer:  If the dealer is registered under Central Excise / VAT etc., then select the Dealer Type (you may select Not Applicable)

Purchase Order Details Entry in Tally : Enter the following Order details (normally the Order Instructions & Terms)

  • Mode / Terms  of Payment : Enter the Terms of Payment (Credit / Cash etc) and mode of Payment (Cheque, through Bank collection etc). 
  • Other References : Any other references (correspondence reference, etc. if any)
  • Terms of Delivery : Terms of Delivery (like FOR Destination, CIF etc)

Purchase Order Despatch Details in Tally : Enter the following Despatch details  (normally the Despatch Instructions & Terms in the Order)

  • Despatch through : Enter the Name of carrier etc.
  • Destination : Enter the Destination of goods to be despatched

Purchase Ledger Account  : Select the Purchase Ledger from the list of  Purchase Ledger Accounts (Ledger Accounts under the Purchase Group). If you have set No at Use Common Ledger Account for Item Allocation, then the Purchase Ledger A/c is to be selected for each Item after Item entry (provided you have set Yes at Complete Accounting Allocation in Delivery Note / Orders at Invoice / Delivery Note / Orders Configuration screen)

Item Details : After entry of Header details, the following Item Details are entered, as explained :

  • Item Name
  • Item Allocation Details
    • Item Name : Select The Item
    • Item Allocation Details : After entry of Item Name, a pop up window appears (F-5C) to enter the Item details as follows :
  • Delivery Due Date : At Due on field, enter the Delivery Due Date of the Item.  In case of staggering delivery  plan  (Item to be delivered in parcel on different dates), you have to enter the Item details separately for each Delivery Date.
  • Batch / Godown :Enter the following details if the respective features are activated:
    • Godown Details : Under Godown column, select the Godown (if Multiple Godown is activated). If the Godown is not known at the time creation of Order, you may select Any (and later specify the Godown at the time of Receipt of Goods).
    • Batch Details : Select the Batch (if  Batch  is activated). If the Batch is not known at the time creation of Order, you may select Any (and later specify the Batch at the time of Receipt of Goods).
  • Quantity : Enter the Order Quantity for the Item.
  • Rate : The Standard Rate (or the price list Rate) is carried, which you may change in the Order
  • Discount : Enter the Discount Rate (in %), if Discount / Price List option is activated.
  • Amount : The computed amount as per Quantity & Rate (& Discount) is displayed, which may be changed (in case of lump sum value, the Amount may be entered without entering the Rate)

Purchase Order Item Allocation Entry in Tally

This way, enter the details of each Item in the Purchase Order.

Other Ledger Details

 After completing the entry of all Item details, at Voucher Entry screen , enter the details for other ledger accounts (like Freight, Tax etc, if any). The process is similar to Purchase Invoice Entry.

  • Ledger Account : Select the Ledger Account
  • Rate : Enter the Rate in % (or may leave zero and fill up amount figure directly)
  • Amount : The computed amount as per Rate specified (according to rule specified in the Ledger Account), is displayed which you may change.

This way, enter the details of each ledger account.

d. Order Voucher Narration

If you set Yes at Use Common Narration at the Delivery Note voucher type, then you may also enter Narration for the voucher, giving more details. The Narration entered may be optionally printed in Purchase Order / Day Book.

Purchase Order Configuration in Tally

Purchase Order Entry Configuration in Tally

Materials Sales Order Entry in Tally

At Main Menu , select Inventory Vouchers to get Inventory Voucher entry screen.  Click F4: Sales Order button to get Sales Order entry Screen , quite similar to Sales Invoice Entry screen.

Sale Order Entry in Tally

The Sales  Order entry screen may be divided in following components :

  • a.Header Part
  • Party A/c Name
  • Order Number
  • Supplementary Details
  • Sales Ledger
  • b.Item Details
  • Item Name
  • Item Allocation
  • c.Other Ledger Accounts
  • d. Voucher Narration

These elements of Sales Order Entry are described below:

a. Header Part

In Header Part, you enter the details common to the entire Sales Order, as follows :

i. Party’s A/c :  At Party’s A/c Name, select the Customer Name from the list of Customer Ledger Accounts

ii. Order Reference :  At Order No, the Sales Order Voucher Number is carried. You may change it and enter your Sales Order Reference (or Party’s Reference) as Order Reference. All the subsequent documents (like Delivery Note, Invoice etc ) are linked through Order Number  (not the Voucher Number) and pending Order Reports  are listed as per the Order Number  so  entered.

iii. Supplementary Details : If you have set Yes at Accept Supplementary Details at Delivery Note / Orders / Invoice configuration , then the Supplementary entry screen appears to enter the following details

  • Buyer’s Details
  • Order Details
  • Despatch Details

Sales Order  Supplementary Details entry in Tally

Buyer’s Details : At Buyer’s Details section, enter  as follows :

  • Consignee :  At Despatch to, enter the consignee name (whom the gods are sent to). The Party Name is carried by default, which you may change (if the consignee is different from Buyer)
  •  Consignee Address : At Address, enter the Consignee Address. The Buyer  Address is carried as default, which you may change (if the consignee address is different from Buyer Address )
  • Sales Tax Number : At Sales Tax Number, the TIN / Sales Tax Number entered in Party Master, if any, is carried, which you may change

Order Details : At Order Details section, enter  as follows :

  • Mode / Terms  of Payment :  At Mode / Terms  of Payment , enter the Terms of Payment (Credit / Cash etc) and mode of Payment (Cheque, through Bank collection etc) 
  • Other References :  At Other References , enter any other Important  references (correspondence reference, etc. if any)
  • Terms of Delivery :  At Terms of Delivery ,enter Terms of Delivery, (like FOR Destination, CIF etc), if any.

Despatch Details : At Despatch  Details section , enter  as follows :

  • Transport : At Despatch through, enter the Name of Carrier etc.
  • Destination : At Destination, enter the Destination of goods despatched

Sales Ledger : Select the Sales  Ledger from the list of  Sales Ledger Accounts (Ledger Accounts under the Sales Group). If you have set No at Use Common Ledger Account for Item Allocation, then the Sales  Ledger A/c is to be selected for each Item after Item entry (provided you have set Yes at Complete Accounting Allocation in Delivery Note / Orders at Invoice / Delivery Note / Orders Configuration screen)

Item Details : After entry of Header details, enter  the following Item Details , as explained :

  • Item Name
  • Item Allocation Details

i. Item Name : At main voucher entry screen , select the Item ordered, from the list of Stock Items to get Item Allocation screen .

ii. Item Allocation Details : On entry of Item Name,  Allocation screen appears to enter the Item details as follows :

  • Delivery Due Date : At Delivery Due Date, Enter the Delivery Due Date of the Item.  In case of staggering delivery  plan (Item to be delivered in parcel on different dates), you have to enter the details separately for each Delivery Date.
  • Batch / Godown :Enter the following details if the respective features are activated:
    • Godown Details : Under Godown Column, select the Godown (if Multiple Godown is activated). If the Godown is not known at the time creation of Order, you may select Any (and later specify the Godown at the time of Delivery of Goods).
    • Batch Details : Select the Batch (if  Batch  is activated). If the Batch is not known at the time creation of Order, you may select Any (and later specify the Batch at the time of Delivery of Goods).
  • Order Quantity : AtQuantity column, enter the Quantity Ordered
  • Sales Rate : At Rate, enter the Item Sales Rate. The Standard Rate (or the Price list Rate) is carried, which you may change.
  • Discount %: At Discount column, enter the Discount  Rate in %, if any (if Discount / Price List option is activated
  • Item value  : At Amount column, the computed amount as per Quantity & Rate / Discount is displayed, which may be changed (in case of lump sum value, the Amount may be entered without entering the Rate)

Sales Order Item Allocation entry in Tally

This way, enter the details of each Item in the Purchase Order.

Other Ledger Details

 After completing the entry of all Item details ,  at main voucher screen , enter the details for other ledger accounts (like Freight, Tax etc, if any)

  • Ledger Account : Select the Ledger Account
  • Rate : Enter the Rate in % (or may leave zero and fill up amount figure directly)
  • Amount : The computed amount as per Rate specified (according to rule specified in the Ledger Account), is displayed which you may change (or enter amount figure directly)

This way, enter the details of each ledger account.

Sales Order Voucher Narration

If you have set Yes at Use Common Narration at the Sales Order voucher type, at main voucher screen (F-6A), you may also enter Narration for the voucher, giving more details. The Narration entered may be optionally printed in Sales Order / Day Book.

Sales Order Configuration in Tally

Sales Order Entry Configuration in Tally

Materials Order Printing in Tally

Having entered Order, you may print the Order (currently being entered) on-line immediately after entry (while saving). The process of Order Printing is similar to Invoice Printing explained earlier.

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