Computerized Accounting Notes - Unit III For Students

UNIT III: RECORDING DAY-TO-DAY TRANSACTIONS IN ERP:
Introduction-Business Transactions-Source Document for Voucher-Recording

Transactions in ERP - Accounting Vouchers-Receipt Voucher (F6)-Contra Voucher (F4)-
Payment Voucher (F5)-Purchase Voucher (F9)-Sales Voucher (F8)-Debit Note Voucher-
Credit Note (Ctrl+F8)- Journal Voucher (F7).
Introduction to Business Transaction:

Every business or organization is involved in financial activities to run their business. These
financial activities should be recorded in books of accounts as per accounting principles. It may
be manual or computerized. If transactions are recorded in computerized environment, then it is
called computerized accounting. For computerized Accounting can be done by using any
accounting package like readymade packages (Tally.ERP9, Focus, Wings, Peachtree, and
Quicks Books etc.) or tailored packages.
Source Document for Voucher:

In an ERP environment, the day-to-day business transactions are recorded in a proper
selected documents. The documents becomes source to record the business transactions in
the form of accounting vouchers. Such vouchers may be Receipt, Payment and Contra etc.
Each time a company makes a financial transaction, it generates some paper trail. This
paper trail is called a source document or documents.
A source document describes all the basic facts of the transaction, such as the
amount of the transaction, to whom the transaction was made, the purpose of
the transaction, and the transaction date.
Importance of Source Documents

The source document is essential to the bookkeeping and accounting process as
it provides evidence that a financial transaction has occurred. During an
accounting or tax audit, source documents back up the accounting journals and
general ledger as an indisputable transaction trail.
Common source documents include:

 Canceled checks
 Invoices
 Cash register receipts
 Computer-generated receipts
 Credit memo for a customer refund
 Employee time cards
 Deposit slips
 Purchase orders
Introducing Voucher:
 A voucher is a primary document that contains the details of account transactions.
 The transactions are recorded in vouchers and affect financial statements and other
various reports.
 Tally.ERP9 provides 22 different types of predefined vouchers.
 These vouchers types are related to Accounting, Inventory and Payroll.
Introduction to Voucher Entry:

 A voucher is a document that contains details of a financial transaction and is required
to record the same into the books of accounts.
 When user enter the data in Tally through voucher entry mode, it is known as voucher
entry.
 For every transaction, user can use the appropriate Tally voucher to enter the details
into the ledgers and update the financial position of the company.
 There are different types of vouchers are available under Tally.ERP 9 based on
category.
 The predefined vouchers are :
 Conventional Voucher: There vouchers are used to record all accounting

transactions. These vouchers directly affect to final accounts. In tally there are
many conventional vouchers like: Contra Voucher, Payment vouchers etc.
Primary Types Category of the

Predefined Vouchers
of Voucher Voucher
 Contra Entry
 Payment Entry
 Receipt Entry
Accounting
 Purchase Entry
Vouchers  Sales Entry
 Debit Note Entry
Conventional  Credit Note Entry
Vouches  Receipt note
 Rejections In
 Rejections Out
Inventory Vouchers  Material In
 Material Out
 Stock Journal
 Physical Stock
Unconventional Optional and Non-  Memorandum Voucher

Vouchers  Optional Vouchers
Accounting  Reversing Journals
Vouchers  Post Dated Vouchers
Order Processing  Enabling Order Processing
 Viewing Order Position
 Purchase Order Processing
 Sales Order Processing
 Job Order Processing
 Viewing Order Position
 Using Additional Cost of Purchase
 Using Tracking Numbers
 Using Zero Valued Entries
 Using different Actual and Billed Quantities
Advanced Voucher
 Using Batch wise details
Entry  Using Mfg. and expiry dates
 Using Cost Categories and Cost Centers
 Using Cost Centre Class
 Using Multi-currency
 Unconventional Voucher: these are special vouchers. These are used to record
provisional or non-accounting transactions. These vouchers do not affect the final accounts
and profitability of the company. There are many unconventional voucher like: Memos,
Reversing Journal, Optional voucher etc.
Accounting Vouchers:
These contain entries related to accounting transactions. The Accounting Vouchers option can be
found in the Gateway of Tally Menu. Some commonly used Accounting vouchers are:
1) Contra Voucher (F4): Contra voucher is used for recording transactions for Cash
withdrawals for office use from Bank and depositing cash or Cheques in companies or
business bank accounts. It is also used for funds transfer between cash and bank. It
Indicates transactions related to the transfer of funds from-
 Cash account to Bank account
 Bank account to Cash account
 Bank account to Bank account
 Cash account to Cash account
2) Payment Voucher (F5): It is used to record all the payments made by the company by
way of Cash/Cheques. Payment Transactions related to expenses, purchasing any kind of
assets, purchases, payments to creditors loans and advances, discounts paid, repayments
of loans etc are recorded in this voucher. It is the default accounting voucher that means
when user activate accounting voucher, automatically payment voucher screen appears.
F5 function key is used to use it as keyboard shortcut.
Payment vouchers can be divided into two categories:
1. Cash Payment: all the payments which made by hard cash are called cash payments
like wages, postage, cash purchases, stationery, misc. expenses etc.
2. Bank Payments: all the payments which made by cheque or thru funds transfer by
bank are called bank payments like: repayment of loan thru bank, EMI payment thru
Bank, Salary Payment, loan given by cheque, bank charges etc.
3) Receipt Voucher (F6): It is used to record all the receipts received by the company by
way of Cash/Cheques. Cash or Cheque received from debtors against their dues or cash
sales or any income receipts in the form of cash or cheque on Account recorded into using
the Receipt Voucher.
Receipt vouchers can be divided into two categories:
1. Cash Receipt: all the receipts which received by hard cash are called cash receipts
like received cash from debtors, rent received, cash sales etc.
2. Bank Receipt: all the receipts which received by cheque or thru funds transfer by
bank are called bank receipts like: loan taken from bank, interest received on Fixed
Deposits, Cheques received from debtors etc.
4) Journal Voucher (F7): All the entries which do not go in any other voucher, entered in
Journal Voucher. All special kinds of entries are recorded in this voucher. These are used
to adjust the debit and credit amounts without involving the cash or bank accounts. This
is used to record special transactions such as:
 Adjustment Entries like:
 Outstanding Expenses
 Prepaid Expenses
 Accrued Income
 Unearned Income
 Depreciation on Assets etc.
 Transfer Journal Entries
 Correcting Entries
 Purchase and sale of Fixed Assets Entries
 Closing Entries
5) Sales Voucher (F8): it is used to enter transactions related to sale of GOODS and
SEVICES. All kinds of sale of GOODS and SERVICES like Cash Sales and Bank Sales
will be entered in this voucher. The sale can be of two types:
In this entry can be passed in two mode:
 AS VOUCHER (Voucher mode (Ctrl + V)): When bill is not prepared for sale then
the sale entry will be made in voucher mode. In this it will asked TO and BY for
Ledger Accounts. In this it will asked debit and credit amount.
 AS INVOICE (Invoice mode (Ctrl + I)): When the Invoice has been generated then
the transaction will be recorded in INVOICE MODE. When a sales transaction takes
place and a document having details of the transaction (item, name, tax, rate of item,
qty etc) has to be given to the buyer (Customer / Debtor) as a proof of sale. This
document is called an Invoice or Bill. In this mode, the calculations will be automated
and the transactions will be fed into the system easily.
6) Credit Note (Ctrl+ F8): A credit note is an official legal document that suppliers gives
to customers to notify the customer that credit is being applied to their account for any
number of reasons. It’s a way to issue full or partial refunds for invoices that have already
been issued or paid. Credit note can be issued to customers because:
 The customer returned goods or rejected services for any number of reasons
 There was an overpayment on the original invoice
 There was a mistake in price on the original invoice
 The goods were damaged in some way during transit
It includes following Details:-

 The date the credit note is issued
 The credit note number (this can be linked to the invoice number).
 Customer reference number
 Payment terms
 Contact details (company name, billing address/shipping address, VAT number/TIN)
All the sales returns are to be entered in Credit Note. To use this voucher, first it has
to be activated by set as “YES” to Use Debit and Credit Notes in Invoice section of
Accounting features (F11).
Ctrl+F8 keyboard shortcut is used to use it.
7) Purchase Voucher (F9): it is used to enter transactions related to Purchase of GOODS

and SEVICES. All kinds of Purchase of GOODS and SERVICES like Cash Purchase
and Bank Purchase will be entered in this voucher. The sale can be of two types:
In this entry can be passed in two mode:
 AS VOUCHER (Voucher mode (Ctrl + V)): When bill is not prepared for Purchase
then purchase entry will be made in voucher mode. In this it will asked TO and BY for
Ledger Accounts. First it will ask credit ledger details and then debit ledger. It will
also asked debit and credit amount.
 AS INVOICE (Invoice mode (Ctrl + I)): When the Invoice has been generated then
the transaction will be recorded in INVOICE MODE. When a purchase transaction
takes place and a document having details of the transaction (item, name, tax, rate of
item, Qty etc) has been received from seller (Vendor / Creditor) as a proof of
purchase. This document is called an Invoice or Bill. In this mode, the calculations
will be automated and the transactions will be fed into the system easily.
8) Debit Note (Ctrl+ F9): A debit note is a document created by a buyer when returning
goods received on credit. A Debit note is an official legal document that buyer gives to
supplier to notify the supplier that debit is being applied to their account for any number
of reasons. The debit note can provide information regarding an upcoming invoice or
serve as a reminder for funds currently due.
The goods returned to suppliers or rejected services of suppliers for any number of
reasons
 There was a mistake in price on the original invoice
 Goods received are damaged or defective
 The purchaser has been overcharged.
 The invoice value is incorrect (due to extra goods being delivered, or goods are
charged at lesser value, etc.)
It includes following Details:-
 For returned items, the note will include:
 The total anticipated credit
 An inventory of the returned items
 The reason for their return.
 The date the debit note is issued
 The debit note number (this can be linked to the invoice number).
 supplier reference number
 Payment terms
 Contact details (company name, billing address/shipping address, VAT number/TIN)
All the purchase returns are to be entered in this voucher. To use this voucher, first
it has to be activated by set as “YES” to Use Debit and Credit Notes in Invoice
section of Accounting features (F11).
Ctrl+F9 keyboard shortcut is used to use it.

Components of Accounting Voucher Creation Screen:
In Tally, the Accounting voucher creation screen is divided into three parts:
1) Main Voucher Entry Area: All the transactions are to be entered in this
area. It includes date, name of the ledger, amount and screens depending on
user’s vouchers configuration.
a. Voucher Name: Name of the voucher which is presently active.
b.Voucher Number: Latest number of voucher which is auto-generated.
c. Voucher Date: Date of voucher entry. Which can be changed by using F2 key.
d.BY/TO: ledger names to be entered from the displayed list of ledgers, in
which at least one account will be debited and at least one account will be
credited. These can be more than one in compound entry.
e. Debit/Credit: Will show the amount to be debited/ credited of each ledger.
It will be same in case of only one ledger in both side.
f. Total Amount: Here total amount will be displayed which will be
calculated automatically. The total amount of both side i.e. Debit and credit
will be the same. If it will not be the same then voucher entry will not be
completed.
g.Narration: It is used to give the narration of the entry according to the
transaction.
2) Button Bar Area: All the buttons for quick interaction with Tally.ERP 9
are displayed in this area.
3) Calculator Area: Any kind of complex mathematical calculation can be
done here.
1
b c
a
2
d e
f
g
Entries in Different Types of Vouchers:
Contra Voucher:
To enter record in the Contra Voucher,
 Go to Gateway of Tally > Accounting Vouchers
 Select F4: Contra from the Button Bar or press F4.
 Contra Voucher Screen will be displayed.
 Enter the information in relative fields like
o Voucher Date: Enter the date of entry.
o Particulars: Enter or select the required ledger from the displayed list of ledger.
Only two types of ledgers can be entered in contra voucher i.e. Cash Account or Bank
Account. In Contra voucher, the ledger which is to be credited will be entered first.
o In case of bank account it will ask the details of bank like: Cheque No. ,
Bank Name, etc.
o In case of cash account it will ask the details of denominations of cash.

o Amount: amount of transaction.
o Narration: Narration of the transaction for which it has occurred.
 Press Enter or “Y” or Ctrl+A to save the voucher.
 Voucher will be saved.
 Press Esc key or Ctrl+Q to exit from the voucher Creation screen.
Payment Voucher:
To Enter record in the Payment Voucher,
 Select F5: Payment from the Button Bar or press F5.
 Payment Voucher Screen will be displayed.
Only two types of ledgers can be entered in credit side i.e. Cash Account or Bank
Account. In payment voucher, the ledger which is to be debited will be entered first.
Receipt Voucher:
To enter record in the Receipt Voucher,
 Select F6: Receipt from the Button Bar or press F6.
 Receipt Voucher Screen will be displayed.
o In Receipt voucher, the ledger, which to be credited will be entered first.
Only two types of ledgers can be entered in debited side i.e. Cash Account or
Bank Account.
Journal Voucher:
To Enter record in the Journal Voucher
 Select F7: Journal from the Button Bar or press F7.
 Journal Voucher Screen will be displayed.
In Journal voucher, the ledger, which to be debited will be entered first.
o In journal voucher cash entries are not possible. To make cash entries
possible in it set as “YES” to Allow cash accounts in Journal Voucher in
Configuration (F12) in voucher creation screen.
Sales Voucher:
To Enter record in the Sales Voucher
 Select F8: Sales from the Button Bar or press F8.
 Sales Voucher Screen will be displayed.
 In this enter following details:-
o Particulars: Enter or select the customer ledger from the displayed list of ledger in
the debit side and select the sales account in the credit side. It will always ask debit
side first.
oAmount: Enter amount of the transaction.
oNarration: Narration of the transaction for credit sales made.
Purchase Voucher:
To Enter record in the Purchase Voucher
 Select F9: Purchase from the Button Bar or press F9.
 Purchase Voucher Screen will be displayed.
o Particulars: Enter or select the supplier’s ledger from the displayed list of
ledger in the credit side and select the purchase account in the debit side. It will
always ask credit side first.
o Enter supplier’s ledger
Credit Note Voucher:
To Enter record in the Credit Note Voucher
 Activate Use of Debit and Credit note by set as “YES” in accounting features.
 Select Ctrl+F8:Credit Note from the Button Bar or press Ctrl+F8.
 Credit Note Voucher Screen will be displayed.
oParticulars: Enter or select the customer ledger from the displayed list of ledger
in the credit side and select the sales returns account in the debit side. It will
always ask credit side first.
Debit Note Voucher:

To Enter record in the Debit Note Voucher
 Activate Use of Debit and Credit note by set as “YES” in accounting features.
 Select Ctrl+F9:Credit Note from the Button Bar or press Ctrl+F9.
 Debit Note Voucher Screen will be displayed.
oParticulars: Enter or select the supplier’s ledger from the displayed list of
ledger in the debit side and select the purchase returns account in the credit side. It
will always ask debit side first.
oNarration: Narration of the transaction for purchase returns made.
Memorandum Voucher:
This is a non-accounting voucher and the entries made using memo voucher will not affect
accounts. In other words, Tally.ERP 9 does not post these entries to ledgers, but stores them
in a separate Memorandum Register. We can alter and convert a Memo Voucher into a
regular voucher when we decide to bring the entry into books.
Some of the uses of Memorandum Vouchers are:

1. Making suspense payments: We can enter a Memo voucher when the cash is given in
advance and the use of cash is unknown (like Petty Cash). It can be turned into a Payment
voucher for the actual amount spent, when the details are known.
To use Memorandum voucher,
1. Enable the following option from F11: Accounting Features
2. Use Reversing Journals & Optional Vouchers. : set it Yes.
3. Go to Gateway of Tally > Accounting Vouchers
> Select Ctrl+F10: Memos from the Button Bar or click Ctrl+F10 .
4. Debit Office Supplies Account.
5. Credit Cash Account.
2. Vouchers not verified at the time of entry: If there is no clarity with the details of a
voucher at the time of entry, we can enter it as a Memo voucher and amend it later when the
details are available.
3. Items given for approval: Generally completed sales are entered into books. In case
items are given on approval, then this sale can be entered in Memo voucher to track and
convert into a proper Sales voucher after approval. we can cancel/delete the memo voucher if
the sale is not made.
Memorandum Voucher Register

To view all the memorandum vouchers,
Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers.
Note: we can also view memorandum vouchers from the Day Book.
Optional Vouchers:
An existing voucher, such as a payment voucher or a receipt voucher, can be marked as
optional. When a voucher is marked as Optional , it does not get posted. An optional voucher
is not a separate voucher type.
To mark a voucher as optional, press CTRL + L from the voucher. The button toggles
between regular and optional.
To use Optional voucher,

1. Enable the following option from F11: Accounting Features
2. Use Reversing Journals & Optional Vouchers. : set it Yes.
To mark a voucher type as optional

1. Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter.
2. Select a voucher type.
3. Set Make Optional as default to Yes.
4. Press Ctrl+A to accept.
Use of optional vouchers
● Incomplete transaction: Mark a voucher Optional , when it is an incomplete transaction

and you do not want it to affect the accounts. For example , optional sales invoice can be
printed as a proforma invoice.
● Forecast future Sale: Optional vouchers can be used to forecast future sales. For
example , create a new voucher type, e.g. Sales Forecast. Record future sales projections
using this voucher type.
● To see the impact of transactions: Optional vouchers allow to see the impact of
transactions without actually posting them.
To view Optional Voucher register:
Go to Gateway of Tally > Display > Exception Reports > Optional Vouchers .

Reversing Journals:
Reversing Journals are special journals that are automatically reversed after a specified date.
They exist only till that date and are effective only when they are included in reports.
These are used in interim reporting in the course of the financial year where accruals are to be
reported. These accruals are usually short term and are cleared in the subsequent period.
We may use reversing journal for accounting for or providing for depreciation. Since,
depreciation is usually provided during at the end of the year, using the Reversing journal we
may include them for monthly reporting or a specific period to give more accurate status or
position. The Reversing Journal can be created as of a particular date and made Applicable up
to a different date.
To activate Reversing Journals,

1. Go to Gateway of Tally.
2. Select F11: F1: Accounting Feature.
3. Set Use Reversing Journals & Optional Vouchers? to Yes.
4. Accept the screen to save.
Reversing Journal Register

All vouchers are maintained in a Reversing Journal Register. These are not posted to any
books of accounts and cannot be included in regular reports. They can only be seen using a
scenario.
Go to Gateway of Tally> Display> Exception Reports> Reversing Journals.
Post-Dated Vouchers:
Post-dated vouchers are used for future entries. Post-dated vouchers can be used for any
entry which is going to take place at some future date
While entering vouchers, we can mark them as post- dated, as a result these vouchers will
not be updated in the ledgers till the date specified in the voucher.
For example, if you issue post-dated Cheques towards payment of installments, we can set
up the payments in advance, and Tally.ERP 9 will only update them in the ledgers on the due
date.
Mark vouchers Post Dated by using CTRL + T
Post-dated Vouchers Register: All Post-dated vouchers are maintained in Post-dated
voucher Register.
Go to Gateway of Tally > Display > Exception Reports > Post-Dated Vouchers

Computerized Accounting Notes - Unit III For Students

Uploaded by

Copyright:

Available Formats

Computerized Accounting Notes - Unit III For Students

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Computerized Accounting Notes - Unit III For Students

Uploaded by

Copyright:

Available Formats

UNIT III: RECORDING DAY-TO-DAY TRANSACTIONS IN ERP:

Introduction-Business Transactions-Source Document for Voucher-Recording

Introduction to Business Transaction:

Source Document for Voucher:

Importance of Source Documents

Common source documents include:

Introduction to Voucher Entry:

 Conventional Voucher: There vouchers are used to record all accounting

Primary Types Category of the

Unconventional Optional and Non-  Memorandum Voucher

F5 function key is used to use it as keyboard shortcut.

Payment vouchers can be divided into two categories:

F6 function key is used to use it as keyboard shortcut.

Receipt vouchers can be divided into two categories:

F7 function key is used to use it as keyboard shortcut.

In this entry can be passed in two mode:

F8 function key is used to use it as keyboard shortcut.

It includes following Details:-

Ctrl+F8 keyboard shortcut is used to use it.

7) Purchase Voucher (F9): it is used to enter transactions related to Purchase of GOODS

In this entry can be passed in two mode:

F9 function key is used to use it as keyboard shortcut.

Ctrl+F9 keyboard shortcut is used to use it.

o In case of cash account it will ask the details of denominations of cash.

Debit Note Voucher:

Some of the uses of Memorandum Vouchers are:

Memorandum Voucher Register

To use Optional voucher,

To mark a voucher type as optional

Use of optional vouchers

● Incomplete transaction: Mark a voucher Optional , when it is an incomplete transaction

To view Optional Voucher register:

Go to Gateway of Tally > Display > Exception Reports > Optional Vouchers .

To activate Reversing Journals,

Reversing Journal Register

Go to Gateway of Tally> Display> Exception Reports> Reversing Journals.

You might also like