Materials Purchase and Sales Orders Execution in Tally

Materials Sales Purchase Orders Execution in Tally

Order  Execution means transaction of goods as per Order (Order Fufilment). After issue of Order, the  Order is executed. The vendor supplies the goods against their Sales Order and the buyer receives the goods against their Purchase Orders. So when the goods are received / delivered, the Delivery  / Receipt Note or the Sales / Purchase Invoice are to be created by the Buyer / Seller, against the respective Order.

The entry process of Sales / Purchase Order have been explained earlier. Now the additional part of  Execution of Order (Creation of Challan / Invoice linking Orders) are explained :

Materials Sales Order Execution in Tally

• Creation of Delivery Note against Sales Order
• Creation of Sales Invoice against Sales Order

Materials Purchase Order Execution in Tally

• Creation of Receipt Note  against Purchase Order
• Creation of Purchase Voucher against Purchase Order

Materials Delivery Note entry against Sales Order in Tally

Delivery Note entry has been explained earlier. Here we explain the additional process of linking the Delivery Note against Order.

During Delivery Note  entry, at Order Details section of the Supplementary Details subscreen, the list of all pending order numbers appear at Order Number field. Now enter as follows for Delivery Note :

• Materials Delivery Note Against existing Pending Sales Order : Select the Order number against which the Delivery Note is being created, from the list of Pending Orders. You may select several Orders one by one in one Delivery Note.
• Materials Delivery Note Against Sales Order to be Issued : Sometimes, the Delivery Note is created first and the respective Order is to be created later.  In such case, select New Number, and enter the Order Number (that would be created for the delivery note). Later on, create the Order (with he specified Order Number) which will get linked with the Delivery Note.
• Materials Delivery Note Without Sales Order : Select Not Applicable.

Delivery Notes against Sales Order entry in Tally

Materials Sales Invoice entry against Sales Order in Tally

Sales Invoice may be directly entered against Order (no Delivery Note is created). Sales Invoice entry has been explained earlier. Here we explain the additional process of linking the Delivery Note against Order.

During Sales Invoice entry, at Order Details section of the Supplementary Details subscreen, the list of all pending order numbers appear at Order No(s) field. Now enter as follows for Sales Invoice :

• Sales Invoice entry Against existing Pending Sales Order: Select the Order number against which the Sales Invoice is created, from the list of Pending Order. You may select several Orders one by one in one Sales Invoice.
• Sales Invoice entry Against Sales Order to be issued: Sometimes, the Sales Invoice is created first and the respective Sales Order is to be created later.  In such case, select New Number, and enter the Sales Order Number (that would be created for the Sales Invoice). Later on create the Order which will get linked with the Sales Invoice.
• Sales Invoice entry Without Sales Order: Select Not Applicable.

Sales Invoice entry against Sales Order in Tally

Materials Receipt Note entry against Purchase Order in Tally

Receipt Notes entry has been explained earlier. Here we explain the additional process of linking the Receipt Note against Order.

During Receipt Note entry, at Order Details section of the Supplementary Details subscreen , the list of all pending order numbers appear at Order Number field. Now enter as follows for Receipt Note :

• Against existing Pending Purchase Order : Select the Order number against which the Receipt Note is created from the list. You may select several Orders one by one in one Receipt Note.
• Against Purchase Order to be issued : Sometimes, the Receipt Note is created first and the respective Purchase Order is to be created later.  In such case, select New Number, and enter the Purchase Order Number (that would be created for the Receipt Note). Later on create the Order which will get linked with the Receipt Note.
• Without Purchase Order : Select Not Applicable.

Materials Receipt Note entry against Purchase Order in Tally

Purchase Invoice entry against Purchase Order in Tally

Materials Purchase Invoice entry against Purchase Order in Tally

Purchase Invoice may be directly entered against Order (no Receipt Note is created).  Purchase Invoice entry has been explained earlier. Here we explain the additional process of linking the Purchase Invoice against Order.

During Purchase Invoice  entry, at Order Details section of the Supplementary Details subscreen, the list of all pending order numbers appear at Order Number field. Now enter as follows for Purchase Invoice :

• Against existing Pending Order : Select the Purchase Order number against which the Purchase Invoice is created, from the list of Pending Order. You may select several Purchase Orders one by one in one Purchase Invoice.
• Against Purchase Order to be issued : Sometimes, the Purchase Invoice is created first and the respective Purchase Order is to be created later.  In such case, select New Number, and enter the Purchase Order Number (that would be created for the Purchase Invoice). Later on create the Order which will get linked with the Purchase Invoice.
• Without Purchase Order : Select Not Applicable.

Orders do not affect any Ledger Accounts. So, the ledger accounts specified in Orders entry, do not impact any ledger account, but helps entry of corresponding subsequent stage vouchers (e.g  Delivery / Receipt Note against orders, Sales / Purchase Invoice entry against Delivery / Receipt Note & Sales / Purchase Invoice entry against Sales / Purchase Orders as the respective details are carried from he previous documents o the next level linked documents.

Materials Sales Purchase Order Pre-Closure in Tally

An Order is an accepted contract between Buyer & Seller. So, in natural course, the contract would be executed in full. That means, the Seller would deliver full quantity of Ordered goods and the Buyer would Accept the full quantity of Ordered goods.

However, sometimes, Buyer / Seller may decide that the balance undelivered quantity of an order (full or partial) will not be further delivered by Seller and the Balance Order Quantity be cancelled. In such case, the entire order is not closed, but the Balance Order Quantity gets reduced. The order be treated as fully executed.

Pre Closure of Order may be done at during Voucher Entry or at Order Details screen :

Materials Sales Purchase Order Pre Closure at Orders screen in Tally

You may pre close order (before Order Completion), in following ways :

You may Pre Close an Order in 2 ways :

• Pre Close the entire Order :  At Order Alteration screen, click C:Pre Close (or pres Ctrl+C) button to get Pre Closure screen.

Order Pre Closure button in Tally

• Pre Closure Reason : At Reason, specify the Reason.
• Pre Closure Date : At Closed On, enter the Date of Pre Closure

The entire Order (in respect of all the Items) is closed.

Sales Purchase Order Pre Closure option set up in Tally

Pre Close Balance of selected Item : To get Pre Close Order at Item Level, at Order Configuration screen (Click F12:Configure at Orders Alteration  screen), set Yes at Use Pre Closure Order details. Consequently, at Item Allocation screen, the column Pre – Close Quantity  appears.

Order Pre Closing Configuration option

Now, enter as follows :

• Pre Closure Quantity : At Pre Close Quantity Column, enter the Quantity to be reduced from the Balance Order
• Reason : At Reason for Pre Closure, enter the Reason

Item Order Pre Closure at Orders screen in Tally

The Balance of Order of the Item gets reduced by the specified Pre Closure Quantity.

Materials Sales Purchase Order Pre Closure at Voucher screen in Tally

If during Orders Entry, it is decided that Balance Order (full or Partial) will not be fully executed, the Pre Closure Quantity may be entered at respective Voucher Entry screen.

At Voucher Entry (Delivery Note / Receipt Note / Purchase Invoice / Sales Invoice), you may pre –close Order at Item Level. At Voucher Entry Configuration (at current Voucher entry / Alteration screen, click F12:Configure to get respective Voucher Entry Configuration screen), set Yes at Use Pre Closure Orders Details.

Order Pre Closing at Vouchers screen in Tally

Consequently, at Item Allocation screen, a new Column Pre Close Quantity appears. At the Item Allocation screen of the Item for which Order to be cancelled, enter as follows:

• Pre Closure Quantity : At Pre Close Quantity Column, enter the Quantity to be reduced from the Balance Order.
• Reason : At Reason for Pre Closure, enter the Reason.

The Balance of Order for the Item gets reduced by the specified Pre Closure Quantity.

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