Voucher Numbering System in Tally PRIME

Accounts Voucher

Accounts Voucher is a record of business transaction. Important and complete details of each transaction are recorded in Accounts Voucher. Accounts Voucher is recorded in books of accounts in date wise chronological sequence.

Voucher Numbering in Manual system

Transactions in manual system is normally written in Bound books of accounts. Subsequent change in Accounts records, like voucher alteration, insertion, deletion etc., are visible and traceable in manual system. So, sequential Voucher Numbering in strict chronological order is not so Important in manual system, from sanctity point of view.

Voucher Numbering in Computerised Accounting system

However, in Accounts records maintained in digital system, the data may be changed any time, without leaving any trace of previous data. So, the system must have strict safeguard against manipulation of Data. This is primarily achieved through strict serial voucher numbering system, to prevent and track modification, deletion and subsequent insertion of Voucher.

To track and control vouchers, each Voucher is identified by unique serial number. In ideal situation, voucher number should be in strict consecutive serial number, there should be no duplicate number. Voucher number thus ensures sanctity of accounts that all vouchers are recorded correctly, in a foolproof systematic manner. No vouchers missing, no duplicates, no subsequent insertion.

A good accounting system, ensures that voucher should be recorded immediately when a transaction is complete. So, vouchers would be recorded in strict chronological manner. No back dated transaction should be entered later.

Recording voucher immediately on transaction  ay seem to be obvious, but in practice, many organisation, particularly in small orgasinsations, where one person manages multiple tasks, jobs and roles, recording of voucher  immediate on transaction may not be practicable.

So, for the business organsiation, the keeping voucher number in strict chronological sequence is a real challenge. In most cases, they would like to insert backdated voucher, yet maintain the voucher number sequence in proper order, to maintain sanctity of the Accounts.

Voucher Numbering Methods in Tally PRIME

Keeping in mind the practical difficulties and woes of recording voucher immediately on transaction, yet manage their business efficiently, Tally PRIME provides various alternate Voucher Numbering Methods, like, Automatic  & Automatic  with optional Manual Override, Manual and No Voucher Numbering, as described next. Tally further provides advanced Voucher Numbering scheme, with user defined Prefix, Suffix and periodical renumbering scheme, so that user can maintain the system in perfect order, without woes of scrutiny, even in case of irregular entries.

Automatic Voucher Numbering in Tally PRIME

Let us first discuss about Automatic Voucher Numbering Method. The user does not enter the Voucher Number in automatic numbering scheme. Tally automatically generates serial consecutive serial  Number in chronological order, for each Voucher Type.

Automatic Numbering System is often preferred by small users who can not always enter voucher in time. Often they have to enter back dated vouchers, as information & documents are not always available in Time. But, it has serious problem of auto renumbering of voucher in case of voucher deletion & insertion of back dated voucher. When a voucher issued gets renumbered in books, it distorts accounts in very way. The organisation may be suspected or charged for manipulation by Revenue Authorities

Immediately on Voucher entry, its effect goes in all the reports. We give documents (like Sales bill, Invoice, Money Receipt etc.) to the party. Books of Accounts gets printed. If the Voucher number is subsequently changed, then all the records of Accounts will be wrong and in disorder. Voucher number is the Authentic ID of Accounts transaction, it cannot be changed after Voucher is saved.

Before selecting Automatic Voucher Numbering Scheme, you should understand the impact of insertion, deletion and change of backdated voucher. It will cause disruption in Voucher Number of vouchers of subsequent Date. Sometimes even the accountant or management is not aware of such a feature of Tally, and they unknowingly perform Backdated Voucher operation.

To obviate such ill effect of Automatic Voucher Number, Tally offers the feature of cancellation of Voucher. The cancelled voucher remain in system, with all data removed (cancelled voucher becomes a blank voucher), So the subsequent voucher number does not change. The cancelled voucher gets printed in Day Book reports, to show the continuity of voucher serial number.

Cancelled Voucher creates a blank number (like a blank cheque left in cheque book to be used later on, or cancelled if not needed).  The cancelled voucher does not die completely. It may be reused again later on for another voucher.  So, a cancelled voucher may get resurrected  from the funeral pyre, with its previous identity, but in new look. The cancelled voucher may be edited  to make another regular voucher of same number. No missing Voucher number any more.

You should understand this strange and unique behavior of Automatic Voucher Numbering scheme of Tally, and then adopt Voucher Numbering scheme. Often Management / Accountant do not understand the implication of Automatic Voucher Number.

Tally has introduced this backdoor system to fulfil the requirements and wishes of small proprietorship organizations, who cannot do regular Voucher Entry, so often make Back Dated Voucher operation. However, this system opens the doors of accounts manipulation and management / statutory authorities, should be cautious about it.

Automatic (Manual Override) Numbering in Tally PRIME

So, Automatic Voucher Number may not be suitable for those, who do not record vouchers immediately on transaction, but to often make Back dated voucher entry. For such users, tally provides a variant of Automatic Voucher Numbering scheme, with option of Manual Override, to happily allow Back dated Voucher operation.

Automatic Voucher Number with Manual Override is a mix of Automatic & Manual. The voucher number is allotted serially by default, but the user can change the voucher number (normally ahead) to make gaps for possible future back dated vouchers. Next voucher will get serial number therefrom (from the revised number). Later on, the voucher for back date can be manually inserted in left out voucher numbers, to make up the missing gaps. Unused voucher serial numbers may be Cancelled. So, Voucher numbers looks consecutive serial, in chronological order, leaving no trace of backdated inserted voucher.

However, such loophole in the system acts as a double edged sword. It often protects the organisation for something wrong (accidental or intentional), while such features make the infernal security system weak. Ill motivated staff may take advantage of the system weakness and may manipulate accounts, evading the eyes of the management.

Voucher Auto Numbering in Tally release 3

Re-using Cancelled voucher, requires pre planning for voucher cancellation ad reuse.  That is not practically possible.

To further smoothen the numbering anomalies, particularly to comply GST Voucher Numbering rules, in Tally Prime Rel 3, introduced another option for Auto Numbering, like ‘Retain original number’, in addition to earlier option of ‘Renumber Voucher’. The newly added option keeps the old numbers intact. 

Through Retain Original Number option, the voucher number assigned to a new voucher entered remain intact. It is not affected by subsequent insertion or deletion of other back dated voucher.

This may cause unused voucher number due to deletion. Such unused voucher number may be tracked and re used for a new voucher. These facilities were previously available in guise of Voucher cancellation and Reuse of Cancelled Voucher Number. The new options added in Voucher type make it straightforward.

The option may be individually set for each Voucher type, as desired.

Voucher Type with Multiple Voucher Series

Earlier, voucher numbering schemes were applicable independently for each Voucher Type. So, often it required multiple Voucher Type creation to have multiple voucher series (e.g Cash Sale, Credit sale etc.). A new feature has been added to maintain multiple voucher series under same Voucher Type.

Evolution of Voucher Auto Numbering in Tally

Automatic Voucher numbering with auto renumber was created by Tally in its own volition. Such concept is against accounting ethics.  An Invoice or receipt, or any accounting document cannot be renumbered after being issued, or after Accounts Books are printed. In due course, its ill side effects started to arise. So, after thought options like Voucher cancellation, Reuse of cancelled voucher, Automatic – Manual override option, etc., were introduced to tackle the voucher number anomalies. The latest feature of retain Original Number and Re-use Unused Numbers are an effort to this direction. It is yet to be seen, how the users can find it useful, complying the statutory rules, yet maintaining consistent voucher numbers created through  backdated voucher insertion, deletion, etc.

Manual Numbering System in Tally PRIME

In Manual Numbering System, voucher number is allotted manually. This is normally used, where manual voucher entry system is in vogue. Voucher Data is entered in Computer to get various accounts reports process and generated by Tally. To control and alert entry of duplicate vouchers with same number, Tally provides a check to trap duplicate numbers.

No Numbering System in Tally PRIME

In manual accounting system, prime books (books of original entry) are manually maintained, voucher numbers may not be used. In such case, Voucher Numbering may be deactivated. There would be no option to enter Voucher Number. So, any voucher, of any date, may be recorded any time.