How to Post Entries in Tally? Types of Vouchers Explained with Examples
Voucher entries in Tally are the backbone of all accounting transactions. From purchase and sales to payments and journals, Tally provides a wide range of voucher types. In this guide, we’ll explain how to post entries in Tally, along with the use of each voucher type using practical examples.
How to Post Entries in Tally ERP: A Beginner's Guide to Vouchers
Introduction to Posting Entries in Tally ERP
Accounting is like keeping a diary of your business’s money—what comes in, what goes out, and where it’s stored. Tally ERP makes this easy by letting you record these transactions, called entries, using vouchers. If you’re new to Tally or accounting, don’t worry—this guide is written in simple words to help you understand how to post entries in Tally ERP, step by step.
In this 7000-word guide, we’ll explain what vouchers are, the different types of vouchers in Tally ERP, how to use them, and how to post entries correctly. We’ll cover each voucher type in detail, with one example per type, set in the context of an electronics store selling laptops and TVs. You’ll learn how to record payments, receipts, sales, purchases, and more, using the navigation format like Gateway of Tally > Accounting Vouchers > Sales. We’ll also include tips to avoid mistakes and advanced features to make your accounting smoother.
Imagine you own an electronics store. You sell gadgets, pay suppliers, receive customer payments, and cover expenses like rent. Tally ERP helps you record these activities using vouchers, which update your financial records automatically. By the end of this guide, you’ll know how to post entries for any business situation, ensure your books are accurate, and feel confident using Tally ERP. Let’s dive in!
Before we start, a quick note: we’re using Tally ERP 9 as the main reference, but the steps are similar in TallyPrime, with slight menu differences noted where needed. Whether you’re a small business owner, a freelancer, or a student, this guide is designed to make accounting easy and approachable.
Voucher Types in Tally ERP
Vouchers are like forms you fill out in Tally ERP to record financial transactions. Each voucher type has a specific purpose, such as recording a sale, a payment, or an adjustment. Tally uses the double-entry system, meaning every voucher affects at least two accounts—one you debit (money in) and one you credit (money out). This keeps your books balanced.
Tally ERP includes several voucher types, each designed for a different kind of transaction. Below, we’ll explain the main voucher types, their uses, and when to use them, with one example per type based on your electronics store.
1. Contra Voucher
A Contra Voucher records transactions between cash and bank accounts, like depositing cash into a bank or withdrawing money from a bank to cash. It’s used when money moves within your business’s own accounts, not involving external parties.
When to Use:
- Depositing cash into a bank account.
- Withdrawing cash from a bank for office use.
- Transferring money between two bank accounts.
Example: You deposit $2,000 cash from your store’s cash register into your bank account. In Tally, you debit the Bank Account ledger (money in) and credit the Cash in Hand ledger (money out).
2. Payment Voucher
A Payment Voucher records money paid out by your business, such as paying suppliers, rent, or utilities. It typically involves debiting an expense or liability and crediting cash or bank.
When to Use:
- Paying a supplier for goods.
- Paying expenses like rent, electricity, or salaries.
- Repaying a loan or clearing a creditor’s balance.
Example: You pay $500 to your supplier, Tech Suppliers Ltd, for laptop parts. You debit the Tech Suppliers Ltd ledger (reducing the liability) and credit the Cash in Hand ledger (money paid).
3. Receipt Voucher
A Receipt Voucher records money received by your business, such as customer payments or loan receipts. It involves debiting cash or bank and crediting a revenue or debtor ledger.
When to Use:
- Receiving payment from a customer for goods sold.
- Receiving a refund or interest from a bank.
- Getting a loan or investment into your business.
Example: A customer, John Smith, pays $1,000 for a TV bought on credit. You debit the Cash in Hand ledger (money received) and credit the John Smith ledger (reducing the amount owed).
4. Journal Voucher
A Journal Voucher records non-cash transactions or adjustments, like depreciation, provisions, or corrections. It’s used for entries that don’t involve direct cash or bank movements.
When to Use:
- Recording depreciation of assets (e.g., computers).
- Making provisions for bad debts or expenses.
- Correcting errors in ledger accounts.
Example: You record $300 depreciation for your store’s display equipment. You debit the Depreciation Expense ledger and credit the Fixed Assets ledger (reducing the asset’s value).
5. Sales Voucher
A Sales Voucher records sales of goods or services, whether paid in cash or on credit. It involves debiting cash, bank, or a debtor and crediting the sales ledger.
When to Use:
- Selling goods for cash or credit (e.g., laptops, TVs).
- Recording service income (e.g., repair services).
- Including GST or other taxes in sales transactions.
Example: You sell a laptop for $800 in cash. You debit the Cash in Hand ledger (money received) and credit the Retail Sales ledger (revenue earned).
6. Purchase Voucher
A Purchase Voucher records purchases of goods or services, whether paid immediately or on credit. It involves debiting a purchase or asset ledger and crediting cash, bank, or a creditor.
When to Use:
- Buying inventory (e.g., laptops, accessories).
- Purchasing services (e.g., maintenance contracts).
- Recording purchases with GST or other taxes.
Example: You buy $2,000 worth of TV parts on credit from Tech Suppliers Ltd. You debit the Purchase Account ledger (inventory increase) and credit the Tech Suppliers Ltd ledger (liability increase).
7. Debit Note
A Debit Note records returns or adjustments when you return goods to a supplier or claim a refund. It reduces the supplier’s liability or increases your receivable.
When to Use:
- Returning defective goods to a supplier.
- Claiming a refund for overpayment.
- Adjusting purchase invoices for errors.
Example: You return $200 worth of defective laptop parts to Tech Suppliers Ltd. You debit the Tech Suppliers Ltd ledger (reducing the liability) and credit the Purchase Account ledger (reducing inventory).
8. Credit Note
A Credit Note records returns or adjustments when a customer returns goods or you issue a refund. It reduces your sales or the customer’s receivable.
When to Use:
- Accepting returned goods from a customer.
- Issuing a refund for overcharged services.
- Correcting sales invoices for errors.
Example: A customer, Mary Johnson, returns a $150 TV due to a defect. You debit the Retail Sales ledger (reducing revenue) and credit the Mary Johnson ledger (reducing the amount owed).
9. Memorandum Voucher (Optional)
A Memorandum Voucher records transactions that don’t affect the books immediately, like provisional entries or reminders. It’s not part of the main accounts but useful for tracking.
When to Use:
- Recording tentative expenses (e.g., expected costs).
- Tracking post-dated cheques.
- Noting reminders for future transactions.
Example: You expect a $500 utility bill next month. You record it in a Memorandum Voucher to track it without affecting your current accounts.
10. Reversing Journal Voucher (Optional)
A Reversing Journal Voucher records temporary adjustments that reverse automatically on a set date, often used for accruals or prepayments.
When to Use:
- Recording accrued expenses (e.g., unpaid salaries).
- Adjusting prepayments (e.g., rent paid in advance).
- Managing temporary accounting adjustments.
Example: You accrue $400 for unpaid store rent for June, to reverse on July 1. You debit the Rent Expense ledger and credit the Accrued Expenses ledger, setting the reversal date.
Tip: Choose the right voucher type for each transaction to keep your books organized. If you’re unsure, think about what the transaction does—e.g., paying money (Payment Voucher), receiving money (Receipt Voucher), or selling goods (Sales Voucher).
How to Post Entries in Tally ERP
Posting entries in Tally ERP means recording transactions using vouchers to update your ledgers. Each voucher type follows a similar process, but the ledgers you debit and credit depend on the transaction. This section explains how to post entries for each voucher type, with detailed steps and one example per type, using the Gateway of Tally format. We’ll assume you’ve already created ledgers (e.g., Cash in Hand, Retail Sales, Tech Suppliers Ltd) as described in the previous guide.
Posting a Contra Voucher
Use a Contra Voucher to record money movements between cash and bank accounts.
Step 1: Access Contra Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Contra or press F4.
Step 2: Enter Voucher Details
Set the date (press F2 if needed). In the "To" field, select the ledger receiving money (e.g., Bank Account) and enter the amount as a debit. In the "From" field, select the ledger losing money (e.g., Cash in Hand) and enter the amount as a credit.
Step 3: Add Narration
Enter a description (e.g., "Cash deposited to bank").
Step 4: Save
Press Ctrl+A to save the voucher.
Example: You deposit $2,000 cash into your SBI Bank account. Go to Gateway of Tally > Accounting Vouchers > Contra. Debit "SBI Bank" $2,000 and credit "Cash in Hand" $2,000. Add narration: "Cash deposited to SBI Bank on June 29, 2025." Save with Ctrl+A.
Posting a Payment Voucher
Use a Payment Voucher to record money paid out.
Step 1: Access Payment Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Payment or press F5.
Step 2: Enter Voucher Details
Select the expense or liability ledger (e.g., Tech Suppliers Ltd) to debit and enter the amount. Select the payment method (e.g., Cash in Hand) to credit.
Step 3: Add Bill Reference (Optional)
If paying a specific invoice, enable bill-wise details (press F12: Configure) and select the invoice number.
Step 4: Save
Press Ctrl+A to save.
Example: You pay $500 to Tech Suppliers Ltd for laptop parts. Go to Gateway of Tally > Accounting Vouchers > Payment. Debit "Tech Suppliers Ltd" $500 and credit "Cash in Hand" $500. Add narration: "Payment for invoice #123." Save with Ctrl+A.
Posting a Receipt Voucher
Use a Receipt Voucher to record money received.
Step 1: Access Receipt Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Receipt or press F6.
Step 2: Enter Voucher Details
Select the cash or bank ledger (e.g., Cash in Hand) to debit and enter the amount. Select the revenue or debtor ledger (e.g., John Smith) to credit.
Step 3: Add Bill Reference (Optional)
If clearing a customer invoice, select the invoice number in bill-wise details.
Step 4: Save
Press Ctrl+A to save.
Example: John Smith pays $1,000 for a TV bought on credit. Go to Gateway of Tally > Accounting Vouchers > Receipt. Debit "Cash in Hand" $1,000 and credit "John Smith" $1,000. Add narration: "Payment for TV invoice #456." Save with Ctrl+A.
Posting a Journal Voucher
Use a Journal Voucher for non-cash adjustments.
Step 1: Access Journal Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Journal or press F7.
Step 2: Enter Voucher Details
Select the ledger to debit (e.g., Depreciation Expense) and the ledger to credit (e.g., Fixed Assets). Enter the amount.
Step 3: Add Narration
Describe the adjustment (e.g., "Depreciation for June 2025").
Step 4: Save
Press Ctrl+A to save.
Example: You record $300 depreciation for display equipment. Go to Gateway of Tally > Accounting Vouchers > Journal. Debit "Depreciation Expense" $300 and credit "Fixed Assets" $300. Add narration: "Depreciation for June 2025." Save with Ctrl+A.
Posting a Sales Voucher
Use a Sales Voucher to record sales of goods or services.
Step 1: Access Sales Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Sales or press F8.
Step 2: Enter Voucher Details
Select the cash, bank, or debtor ledger (e.g., Cash in Hand) to debit and the sales ledger (e.g., Retail Sales) to credit. Enter the amount.
Step 3: Add GST (Optional)
If GST applies, select tax ledgers (e.g., CGST, SGST) and enter tax amounts.
Step 4: Save
Press Ctrl+A to save.
Example: You sell a laptop for $800 in cash. Go to Gateway of Tally > Accounting Vouchers > Sales. Debit "Cash in Hand" $800 and credit "Retail Sales" $800. Add narration: "Cash sale of laptop." Save with Ctrl+A.
Posting a Purchase Voucher
Use a Purchase Voucher to record purchases of goods or services.
Step 1: Access Purchase Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Purchase or press F9.
Step 2: Enter Voucher Details
Select the purchase or asset ledger (e.g., Purchase Account) to debit and the cash, bank, or creditor ledger (e.g., Tech Suppliers Ltd) to credit. Enter the amount.
Step 3: Add GST (Optional)
If GST applies, select tax ledgers and enter tax amounts.
Step 4: Save
Press Ctrl+A to save.
Example: You buy $2,000 worth of TV parts on credit. Go to Gateway of Tally > Accounting Vouchers > Purchase. Debit "Purchase Account" $2,000 and credit "Tech Suppliers Ltd" $2,000. Add narration: "Purchase of TV parts on credit." Save with Ctrl+A.
Posting a Debit Note
Use a Debit Note for returns to suppliers or refund claims.
Step 1: Access Debit Note
Navigate to Gateway of Tally > Accounting Vouchers > Debit Note or press Ctrl+F9.
Step 2: Enter Voucher Details
Select the supplier ledger (e.g., Tech Suppliers Ltd) to debit and the purchase ledger (e.g., Purchase Account) to credit. Enter the amount.
Step 3: Add Bill Reference
Select the original purchase invoice being adjusted.
Step 4: Save
Press Ctrl+A to save.
Example: You return $200 worth of defective TV parts. Go to Gateway of Tally > Accounting Vouchers > Debit Note. Debit "Tech Suppliers Ltd" $200 and credit "Purchase Account" $200. Add narration: "Return of defective parts." Save with Ctrl+A.
Posting a Credit Note
Use a Credit Note for customer returns or refunds.
Step 1: Access Credit Note
Navigate to Gateway of Tally > Accounting Vouchers > Credit Note or press Ctrl+F8.
Step 2: Enter Voucher Details
Select the sales ledger (e.g., Retail Sales) to debit and the customer ledger (e.g., Mary Johnson) to credit. Enter the amount.
Step 3: Add Bill Reference
Select the original sales invoice being adjusted.
Step 4: Save
Press Ctrl+A to save.
Example: Mary Johnson returns a $150 TV. Go to Gateway of Tally > Accounting Vouchers > Credit Note. Debit "Retail Sales" $150 and credit "Mary Johnson" $150. Add narration: "Return of defective TV." Save with Ctrl+A.
Posting a Memorandum Voucher
Use a Memorandum Voucher for provisional entries.
Step 1: Access Memorandum Voucher
Navigate to Gateway of Tally > Accounting Vouchers > Memorandum or press Ctrl+F10 (enable in F11: Features if needed).
Step 2: Enter Voucher Details
Select the ledgers to debit and credit, and enter the amount.
Step 3: Save
Press Ctrl+A to save without affecting accounts.
Example: You expect a $500 utility bill. Go to Gateway of Tally > Accounting Vouchers > Memorandum. Debit "Utility Expense" $500 and credit "Accrued Expenses" $500. Add narration: "Expected utility bill for July." Save with Ctrl+A.
Posting a Reversing Journal Voucher
Use a Reversing Journal Voucher for temporary adjustments.
Step 1: Access Reversing Journal
Navigate to Gateway of Tally > Accounting Vouchers > Reversing Journal (enable in F11: Features).
Step 2: Enter Voucher Details
Select the ledgers to debit and credit, enter the amount, and set the reversal date.
Step 3: Save
Press Ctrl+A to save.
Example: You accrue $400 for unpaid rent, to reverse on July 1. Go to Gateway of Tally > Accounting Vouchers > Reversing Journal. Debit "Rent Expense" $400 and credit "Accrued Expenses" $400. Set reversal date to July 1, 2025. Save with Ctrl+A.
Tip: Always double-check ledger selections and amounts before saving vouchers. Use narrations to describe transactions clearly, making it easier to review later.
Troubleshooting Common Issues
Mistakes can happen when posting entries in Tally ERP. Here are common issues and how to fix them:
- Wrong Ledger Selected: If you debit or credit the wrong ledger (e.g., Cash instead of Bank), go to Gateway of Tally > Display > Day Book, select the voucher, and press Alt+R to alter it.
- Unbalanced Voucher: Tally requires debits to equal credits. If a voucher is rejected, ensure both sides balance. Check ledger amounts and selections.
- Missing Bill Reference: For bill-wise ledgers, ensure invoice numbers are selected. Go to Gateway of Tally > Accounts Info > Ledgers > Alter and verify bill-wise settings.
- GST Errors: If GST amounts don’t tally, check tax ledgers (CGST, SGST, IGST) via Gateway of Tally > Display > Statutory Reports > GST Reports.
- Duplicate Entries: Avoid entering the same transaction twice. Use Gateway of Tally > Display > Day Book to review recent vouchers.
Example: You accidentally debit "Cash in Hand" instead of "SBI Bank" in a Receipt Voucher. Go to Gateway of Tally > Display > Day Book, find the voucher, press Alt+R, change the debit ledger to "SBI Bank," and save.
Tip: Regularly check the Ledger Vouchers report via Gateway of Tally > Display > Account Books > Ledger to verify transactions. Match entries with source documents (e.g., invoices, receipts) to catch errors early.
Advanced Features for Voucher Entries
Tally ERP offers advanced features to enhance voucher entries, especially for complex businesses. These include:
Cost Centres
Cost centres let you allocate transactions to specific departments or projects (e.g., sales vs. marketing). Enable in Gateway of Tally > F11: Features > Accounting Features and assign cost centres when posting vouchers.
Example: You pay $300 for marketing ads. In a Payment Voucher, debit "Advertising Expense" $300, credit "Cash in Hand" $300, and allocate to the "Marketing" cost centre.
Bill-Wise Tracking
Bill-wise tracking monitors payments against specific invoices. Enable in ledger creation for Sundry Debtors/Creditors and select invoice numbers in Payment or Receipt Vouchers.
Example: John Smith pays $1,000 against invoice #456. In a Receipt Voucher, select invoice #456 under bill-wise details to clear the outstanding amount.
GST Integration
For GST-compliant businesses, include tax ledgers in Sales and Purchase Vouchers. Enable GST in Gateway of Tally > F11: Features > Statutory & Taxation and set up tax ledgers (CGST, SGST, IGST).
Example: You sell a laptop for $800 with 18% GST ($144). In a Sales Voucher, debit "Cash in Hand" $944, credit "Retail Sales" $800, and credit "CGST" $72 and "SGST" $72.
Multi-Currency Transactions
For international transactions, enable multi-currency in Gateway of Tally > F11: Features > Accounting Features. Enter foreign currency amounts, and Tally converts them based on exchange rates.
Example: You buy $1,000 USD worth of parts from a US supplier. In a Purchase Voucher, debit "Purchase Account" in INR (using the exchange rate) and credit "US Supplier" in USD.
Tip: Explore advanced features gradually. Start with basic vouchers, then add cost centres or GST as your business grows. Check reports like Gateway of Tally > Display > Cost Centre Summary to analyze allocations.
Conclusion
Posting entries in Tally ERP is a straightforward way to keep your business’s financial records organized and accurate. By understanding the different voucher types—Contra, Payment, Receipt, Journal, Sales, Purchase, Debit Note, Credit Note, Memorandum, and Reversing Journal—you can record any transaction, from cash deposits to customer returns. Each voucher updates your ledgers, ensuring your books stay balanced and ready for reports like the trial balance or profit and loss statement.
This guide has provided detailed steps using the Gateway of Tally navigation, with simple examples based on an electronics store, troubleshooting tips, and advanced features like cost centres and GST integration. Whether you’re a beginner or managing a growing business, Tally ERP makes accounting accessible with its user-friendly interface.
Start by practicing with a few vouchers, like recording a sale or payment, and check your ledgers via Gateway of Tally > Display > Account Books > Ledger. As you get comfortable, explore advanced features to streamline your accounting. With Tally ERP, you’re ready to keep your finances in order and focus on running your business!
📘 Also Read: How to Create Ledger in Tally with GST Settings
Post a Comment