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Manage Outstanding Payables

Manage Outstanding Payables

When you make some purchases or obtain services from your vendors you need to keep track of all the payments that you have to make on the agreed timelines. All such pending payments to your parties are outstanding payables. The Outstanding Payables report in TallyPrime gives you an overview of what your business owes for supplies, inventory, and services. You can get an overview of the amount and the creditors to whom you owe money and how much you owe each creditor and how long the money has been owed. Managing your outstanding payables will help you to know the time-to-time expenses, avoid overseeing the payments that you owe to the creditors, and help you manage the cash-flow in your business.

Record and Track Dues: You can get an overview of the amount and the creditors to whom you owe money and how much you owe each creditor and the duration of such pending payments. Managing your outstanding payables will help you to know the time-to-time expenses, avoid overseeing the payments that you owe to the creditors, and help you manage the cash-flow in your business.

Use Credit Period: To ensure that all the payments that you owe to your suppliers are tracked systematically, it is advised to maintain your accounts by specifying the credit period or due date for the party during purchases. You can specify a credit period of say 30 days in the party ledger for the party to make the payments. On recording a credit purchase for such parties, TallyPrime reflects the pending amount and the due date based on the credit period specified for the party. This helps to avoid conflicts with your parties, systematically track your outstanding payables, and make timely payments to your parties.

Bill-by-Bill: At times, when you have made a credit purchase from your party, you can mutually agree with your party to make part payments and make the total payment within a specified time. In such a case, you can use the bill allocation capability in TallyPrime to create one or more bill references as per the breakup decided. Each bill reference can also be specified with a credit period or a due date.

Manage Payables – Credit Purchase Without Bill-wise

When you purchase goods/services on credit, you may want to track and manage the amount that is due to your party. Once you record a purchase, TallyPrime reflects the purchase amount as Credit against the party in the corresponding report. Anytime you make the payment to your party, you can record a payment entry for that amount to clear the outstandings for that party.

In this section

Record a Credit Purchase

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase transactions of the company.

  1. Open the purchase voucher screen.
    1. Gateway of Tally > Vouchers > press F9 (Purchase).
      Alternatively, Alt+G (Go To) > Create Voucher > press F9 (Purchase).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  2. Specify the supplier details.
    1. Supplier Invoice No. and Date: The invoice number and date should be the same as given in the corresponding sales bill.
    2. Party A/c name: Select Cash or Bank for cash purchases. For credit purchases, select the supplier ledger.
    3. Party Details: Enter the supplier’s name and address, if needed.
      If you do not see the Party Details screen, press F12 (Configure), and set Provide Receipt, Order, and Import details to Yes.

      Note: You may want to maintain specific details about your suppliers, such as address with landmark, alternative contact number, and so on, in the invoices. In such cases, you can create party ledgers with the required details. In the Suppliers field of Party Details screen, select the required ledger.
  3. Purchase ledger: Select the accounting ledger to allocate the stock items.
    If you do not see this field on the screen, press F12 (Configure) and set Select common Ledger Account for Item Allocation to Yes.
    In Accounting Invoice, you can select the purchase ledger under Particulars.
  4. Provide the stock item or service details.
    As in other transactions, you can create the item or ledger on the fly by pressing Alt+C.
    • In Item Invoice, select the stock item, enter the Quantity. The Rate will be auto-filled, if available for the stock item. However, you may choose to enter the Rate or Amount.
    • In Accounting Invoice, select the service ledger and enter the Amount.
  5. Select additional ledgers, like transportation charges, insurance, or discount, if any.
  6. Provide Narration, if needed, and accept the screen. As always, you can press Ctrl+A to save.

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.

Set credit limit for parties

To set the credit limit in the party ledger:

  1. In the party ledger screen, press F12 (Configure) > set Provide Credit Limit to Yes.
  2. On the party ledger screen, provide a value (in days or a date) for Specify credit limit. 

Record payments for credit purchases made without bill-wise

  1. Gateway of Tally > Vouchers > press F6 (Receipt). 
    Alternatively, Alt+G (Go to) > Create Voucher > press F6 (Receipt).
  2. If you want to change the voucher date, press F2 (Date).
  3. Select the mode of receipt.
  4. In Account field, select Cash, which is already available.
    When you create a Company in TallyPrime, the system creates two ledgers by default – Cash and Profit & Loss A/c.
  5. Select the ledger for which you are making the receipt and specify the amount. For example, Commission Received.
  6. Under Particulars, select income ledger for which you are making this receipt.
    In case the ledger is not available, press Alt+C to create Ledger on fly. In Ledger Creation (Secondary) screen, give ledger name Commission Received and select Indirect Income in the Under field.
    In TallyPrime, you will find patterns to do certain tasks, and these patterns are consistent across the product. For example, when recording a transaction, press Alt+C to create a ledger, without leaving the voucher. This pattern works across the product. Anywhere in the product, in ledger selection field, press Alt+C to create it.
  7. Under Amount, specify the commission amount.
  8. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Ledger Vouchers

You can view a ledger account with the corresponding voucher details.

  1. Gateway of Tally > Display > Account Books > Ledger.
  2. Select the required Ledger.
  3. Press F2 to change the period as required. The Ledger Vouchers report appears as shown below:
  4. Press Alt+F8 (Columnar) to view details of vouchers in separate columns.
  5. For purchase, payments, journals, debit notes and credit notes, you can view the voucher reference number and date.
    The Ledger Vouchers columnar report appears as shown:

Cumulative balances or running balance for Ledger Voucher reports

  1. Press F12 (Configure) on Ledger Vouchers screen.
  2. Set the option Show Running Balance to Yes to see the running balances for Ledger Voucher report.
  3. Accept the screen. As always, press Ctrl+A to save the changes. The Ledger Vouchers port with running balance column appears as shown below:

You can also access Ledger Vouchers by drilling down from different statements, such as Group Summary and Monthly Summary .

Group Summary

The group summary statement shows the closing balances of the accounts of a selected group for a specified period up to the current date. The default view is that of sub-groups within a group.

To view group summary

  1. Gateway of Tally > Display > Account Books > Group Summary > Select a group.
    Alternatively, press Alt+G (Go To) > type or select 
  2. Select group Indirect Expenses ,and press Enter. The Group Summary screen is displayed as shown:

Manage Payables – Credit Purchase With Bill-wise

If you maintain bills with specific reference numbers for easy tracking in the future, you can use the bill-wise option in the party master. Next time you record a transaction for that party, TallyPrime will internally track the bill by using the voucher number as the reference number. All earlier transactions recorded for that party without the bill-wise option will be tracked as On Account. Whether there is a reference number or not, such dues can be settled by passing the corresponding payment entries.

In this section

Enable Bill-wise in Party Master

In the Party Master screen:

  • To maintain vouchers bill-wise for a particular party, enable the option Maintain Balances bill-by-bill. When you make a credit sale to this party, by default the voucher date is considered as the due date for the payment.
    Note: On maintaining balances bill-by-bill, all bills generated earlier are reflected as On Account.
  • To get the option in party master: 
    1. In F11, ensure that Maintain Accounts is set to Yes and set Enable Bill-wise entry to Yes.
    2. Ensure that in F12 of party master, the option Provide bill-wise details is set to Yes.
    3. Credit Period: If you want to provide any lead time to your party to clear their dues, specify the Credit Period – for example, 30 or 60 Days. When you make a credit purchase from this seller, TallyPrime internally calculates the due date against the voucher entry date, based on the credit period you have agreed with your seller. You may override this during transaction, if you wish to.

Record a credit purchase

A purchase transaction without a corresponding payment entry is a sale on credit – until the you have made the payment. Record a credit purchase. If you have enabled the bill-wise option in the party master, TallyPrime tracks the bill by using the voucher number as the bill reference number.

Record payments for credit purchases made using bill-wise

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Alternatively, Alt+G (Go to) > Create Voucher > press F5 (Payment).
  2. If you want to change the voucher date, press F2 (Date).
  3. Select the mode of payment.
  4. In Account, select Cash, which is already available.
    When you create a Company in TallyPrime, the system creates two ledgers by default – Cash and Profit & Loss A/c.
  5. Select the ledger for which you are making the payment and specify the amount. For example, Rent.
  6. Under Particulars, you need to select expense ledger for which you are making this payment.
    In case the ledger is not available, press Alt+C to create Ledger on the fly. In Ledger Creation (Secondary) screen, give ledger name Rent and select the group Indirect Expense in the Under field.
  7. When recording a receipt entry
  8. In the Bill-wise Details screen, you can choose the purchase bill reference number, against which you want to record the payment.

    Alternatively, you can settle the purchase bill from the Ledger Outstanding report.

Split a Credit Purchase into Multiple Bills

When you make a purchase of large amount and unable to pay at a time, and have agreed to make partial payments in regular intervals, you can split such purchases into multiple bills. This helps you to track the payment breakup against the bills created and manage your outstanding payables systematically.

In this section

Enable Bill-wise in party master

In the Party Master screen:

  • To maintain vouchers bill-wise for a particular party, enable the option Maintain Balances bill-by-bill. When you make a credit sale to this party, by default the voucher date is considered as the due date for the payment.
    Note: On maintaining balances bill-by-bill, all bills generated earlier are reflected as On Account.
  • To get the option in party master: 
    1. In F11, ensure that Maintain Accounts is set to Yes and set Enable Bill-wise entry to Yes.
    2. Ensure that in F12 of party master, the option Provide bill-wise details is set to Yes.
    3. Credit Period: If you want to provide any lead time to your party to clear their dues, specify the Credit Period – for example, 30 or 60 Days. When you make a credit purchase from this seller, TallyPrime internally calculates the due date against the voucher entry date, based on the credit period you have agreed with your seller. You may override this during transaction, if you wish to.

Record a credit purchase – split bill

You can record a sale and split the amount into multiple bills using the Bill Allocation feature.

Alt+G (Go To) > Create Voucher, press F9 (Purchase). 
Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).

To split the sales bill into multiple bills, when recording a credit purchase: 

  1. Press F12 (Configure) > set Use default Bill-wise details for Bill Allocation to No.
  2. In the voucher screen, press Enter on the total amount field to open the Bill-wise Details screen.  
  3. In this screen, select New Ref and provide a Name for the bill. For example, if your voucher number is V1, your bill names can be V1a, V1b, and so on.
    The bill name that you specify here can be used as the bill reference when you record a payment transaction to settle your dues.
  4. If you had specified any Credit Period in the Party Master, the Due Date is set to the same value by default. To override the Credit Period, press F12 (Configure) > set Modify all fields to Yes. Now, specify the due date.  
  5. Fill in the Amount based on how you want the total amount to be split.

Ledger Outstandings

The Ledger Outstandings report displays the details of the outstanding payables – Opening Amount, Pending Amount, Due Date and Overdue days for the selected party. All the purchases recorded bill-wise or without any bill references and the corresponding payment entries recorded are displayed in this report. You can make the payments that are pending with your parties using the report.

In this section

View Ledger Outstandings report

  1. Gateway of Tally > Display > Statements of Accounts > Outstandings > Ledger.
  2. Select a ledger from the list. The Ledger Outstandings report appears as shown below:

You can print or export Reminder Letters from the Ledger Outstanding report by enabling the option Print Reminder Letter in the Print Report or Export Report accordingly.

Button options in Ledger Outstandings report

  • Press Alt+F2 (Period): to change the period
  • Press Alt+F4 (Ledger): to display the list of ledgers. Select the required ledger to view outstandings for the selected ledger.
  • Press Alt+F5 (Detailed): Detailed or press Alt+F5 to display the Ledger Outstandings report in the detailed view. In the detailed view, the following will be displayed:
    • Voucher details : Voucher Date, Voucher Type(s),Voucher Number(s), and Amount
    • Inventory details : Quantity, Stock Item, and Rate
  • Press F6 (Ageing Method): To display the Age wise analysis of the Ledger Outstandings report.  For more information, refer Ageing Analysis report.
  • Press Ctrl+B (Basis of Values): To view the values of the report based on the selected fields, as per your business needs.
    For example, to view the values for only the Credit Bills, press Ctrl+B (Basis of Values) > Select Bills > Credit Bills > and press Enter. 
  • Press Ctrl+H (Change View): You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report. 
    To view the Ledger Monthly Summary for Ledger Outstandings, press Ctrl+H (Change View) > type or select Monthly Summary > press Enter. Press Esc to view the default report.  
  • Press Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by pressing Ctrl+J (Exception Reports), without closing the report. 

    To view the Overdue Bills Only for Ledger Outstanding, press Ctrl+E (Exception Reports) > type or select Overdue Receivables > and press Enter.  Press Esc to view the default report.

  • Press Alt+B (Settle Bills): the Bill Settlement option helps to settle the selected or all bills from the Ledger Outstandings report.
  • Press Alt+S (Contact): To view the ledger contact details.
  • Press F12 (Configure): To change the report configurations, as required.
  • Press Alt+F12 (Range): to use the Range Filter option to search for specific bills from the list of bills outstanding. Users may filter the transactions based on the Date , Original Amount, Pending Amount , Ledger , Reference number . etc. This is a useful tool, as it makes the process of finding specific bills fast, easy and simple.
  • Press Alt+R (Remove Line): To remove a line item from the Ledger Outstandings report.

Group Outstandings

This report helps to view the group-wise outstanding details, including the debit and credit balances. You can configure the report to see only the overdue payments and make payments to your parties accordingly.

In this section

View the group-wise receivables report

  1. Gateway of Tally > Display > Statements of Accounts > Outstandings > Group.
  2. Select the Group from the list. The Group Outstanding report is displayed as shown below:

You can print or export Reminder Letters from the Ledger Outstanding report by enabling the option Print Reminder Letter in the Print Report or Export Report accordingly.

Button options in Group Outstandings report

  • Press Alt+F5 (Detailed): To view the report in detailed mode.
  • Press Alt+F2 (Period): To change the period.
  • Press Alt+F4 (Group): To display the list of groups. Select the required group to view outstandings for the selected group.
  • Press F5 (Ledger-wise): To display only the ledgers and their debit & credit balances.
  • Press Alt+F6 (Ageing Method): To display the Age wise analysis of the Group Outstandings report. For more information, refer Ageing Analysis report.
  • Press F8 (Ledger-wise Bills): To display the ledger-wise breakup of the Group Outstanding report. 
  • Press Ctrl+F8 (Bill-wise): To display all the bills outstanding from the ledgers falling under the selected group.

Configure and filter for specific report information

  •      Press F12 (Configure): to configure the Group Outstandings report. 
  • Press Alt+F12 (Range) to filter masters at the top level in the hierarchy of the current report. For example, you can filter to view the godowns with zero closing quantity.
  • Press Ctrl+F12 (Value) to filter the vouchers based on the conditions you specify. For example, if you want to view the godowns from which sales had happened, use the Value filter and set the voucher condition to Sales.

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