Tally Accounting
Posted by Asok K Nadhani on

Provisional Vouchers in Tally PRIME

Tally is an on-line system, as soon as you make a Voucher entry, the relevant accounts are updated. However, there are situations where you like to enter Voucher without giving its effect in any account (as explained next)

Provisional Vouchers are dormant (sleeping) Vouchers having no accounting effect. They are entered for temporarily keeping a transaction in memorandum, to be activated in future.

Tally provides following types of Provisional Voucher :

  • Optional Voucher
  • Memo Voucher

Optional Voucher

Optional Vouchers are Provisional (inactive) Vouchers which reside as a dormant Voucher without giving an effect (as if no Voucher has been entered).

Each type of Voucher may have its own Optional Voucher. So, the characteristics & rules for Optional Voucher are similar to Regular Voucher type it relates to.

Optional Vouchers are mostly used in following situations :

  • To Create Scenarios
  • To Create Proforma Voucher for approval (elimination of manual Voucher)
  • To Pre plan the transactions (create Vouchers in advance)

Any type of Voucher may be created or marked as Optional (e.g, Accounting Voucher Like: Payment, Receipt, Sales, Purchase, Journal, Inventory Voucher like : Receipt Note, Delivery Note, Rejection In Note, Rejection Out Note. etc, any type of Payroll Voucher, etc). While making voucher entry, you may click the button Optional at the right side button bar, and mark the voucher as optional.

So, Optional Voucher is not a separate Voucher type, but a status of Voucher ( a flagged or marked Voucher). A Voucher may remain in any of the 2 status, either Regular, ie, Voucher in active state (which affects the accounts), or Optional (Voucher in dormant state), which does not affect the accounts.

To Create Scenarios

Scenarios are emulated virtual situations with different parameters, values, etc to dynamically see the changing effect. Scenarios are seen with emulated data. So, emulated transactions are to be created through Optional Voucher, which do not affect the actual report, but is considered for the scenario (scenarios are explained elsewhere).

To create Proforma Voucher for approval

A regular Voucher gives immediate effects in the entire system. So, a Voucher is entered only after the transaction has taken place. So, normally a manual voucher / document is first created to make the transaction effective, and then the regular voucher is entered from the manual voucher.

In large organisation, a proforma Voucher is first created (like an unsigned Voucher). Such Optional Voucher does not affect the system. It just lies in the system for activation (regularisation). The impact of the voucher takes place only after activation (regularisation).

So, first an Optional Voucher is created as usual. The advantage is that the Voucher may be modified, deleted without any problem without affecting any area in the system. It is then converted (regularized) to regular just by a click. It impacts the system in the same way as entry of new voucher.

A few such instances of Proforma Voucher are :

  • Pre Approval Accounts Voucher: First, the Optional Voucher is created. The Voucher is checked by Accountant for correctness (Ledger Accounts and other details), and approved by appropriate authority (Accounts manager etc). The optional is converted to Regular Voucher. This helps to eliminate preparation of Manual Voucher. Everything is done in the computer system.
  • Receipt Note (known as Inspection Note) may be created as optional Receipt Note Voucher. The stock is kept separate and inspected. The Voucher is regularized on acceptance of materials and  the stock gets updated only when the optional Voucher is converted to regular Voucher
  • Delivery Note (known as Packing Slip ) may be created as optional Delivery note Voucher. The materials are collected for packing & delivery. The Voucher is regularized only when the materials are packed for  delivery and  the stock gets updated only when the optional Voucher is converted to regular Voucher
  • Rejection In Voucher (known as Sales Returns) may be created as optional Rejection In Voucher. The stock is kept separate and inspected. The Voucher is regularized on acceptance of returned materials in good saleable condition.  The stock gets updated only when the optional Voucher is converted to regular Voucher
  • Stock Transfer Voucher (known as Requisition slip, for issue of materials to jobber / production dept) 

For this reason, companies make it a policy to create a Voucher as Optional only and then regularise it after proper verification & approval (like signing a Voucher). This is a very sound method of internal control and implementing a robust on-line system (Manual Voucher writing is eliminated).

To pre plan the transactions

Optional Vouchers are also used by smaller organisations. as pre-planned / pre-approved Voucher. For example, the Accountant may create advance optional Voucher for anticipated transactions ensuring that the Vouchers are created correctly (proper ledgers / narrations)  and the transaction is made on the specified / planned date. Thus the Accountant is ensured that the transactions will be done as per plan and proper accounting record would be maintained even in his absence (in small organization, only one or two key persons manage the entire affairs, who are often out in business tours and not available to look after paper work). The optional Voucher offers a neat way to do things in planned and controlled way.

Optional Voucher Creation : Optional Voucher is created in 2 ways:

  • At Voucher Creation screen : At the time of Voucher Creation, using the toggle button  L:Optional /Regular.
  • Automatic Optional Voucher Creation by default : To automatically create optional Voucher on Voucher entry, at the respective Voucher Type creation / alteration screen, set Yes at ‘Make this voucher type as optional as default’. Consequently, on Voucher entry, the new Voucher is created as Optional, which you have to regularize later on.

List of Optional Vouchers : List of optional Vouchers may be printed from GoTo>Exception reports> Optional Voucher, like a filtered Day Book.

Optional Voucher Conversion : To convert the Optional Voucher to Regular, at Voucher Register / Day Book, select the Voucher to get the Voucher in Alteration mode. A flag Optional would appear at the top of Voucher in Optional State. Click L:Optional / Regular  button to toggle the state (to convert Optional to Regular or Regular to Optional as the case may be). The Flag mark at the top would get changed to reflect the changed status.

The Status of the Voucher (Optional / Regular) can be changed through Voucher Alteration. This enhances the possibility of checked Voucher getting altered intentionally (with dubious motive) or accidentally by mistake. 

Memorandum Voucher

Like optional Vouchers, Memorandum  Vouchers (also referred as Memo Vouchers)  are dormant Vouchers and do not affect accounts until these are transformed into the any of the regular Voucher type. Optional Voucher can be regularised into same voucher type. However, Memo Voucher can be converted to any regular Voucher Type.

Memorandum Voucher is a special type of Voucher, which can be converted to any type of Regular Voucher. It is created when the Accountant is not aware about what type of Voucher to be created or What ledger accounts should be entered, to record a specific transaction.

Select Voucher Entry and click F10: Memo and select Memorandum Voucher from the list of Voucher Types. Certation of Optional Voucher is better alternative to Memorandum Voucher. But in Optional Voucher, you have to know the proper Voucher Type to record the transaction, while any Memorandum Voucher can be converted to proper Voucher Type. However, Memorandum Voucher is highly discouraged. If needed, create Optional Voucher only.