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Advance Payment to Vendor in Tally ERP9

Based on Terms and Conditions between buyer and seller, buyer should pay advance payment to the supplier. Advance amount will appear in buyer books of accounts under current assets as an advance to vendors. When buyer received total material as per their order then buyer should pay remaining balance amount to the supplier after adjusting of advance amount.

 

Example: Wisdom media has given purchase order to Acccel chemical of Rs.120000/- with Vat@5% and the payment terms are 30% advance and remaining against delivery.

 

 

Group Creation

 

Path: Gateway of Tally -> Accounts Info -> Groups > Create

 

Name: Advance to vendors

 

 

 

 

 

Ledgers Creation

 

Path: Gateway of Tally -> Accounts Info -> Ledgers > Create

 

Name: Advance to Acccel Chemical

 

 

Under: Advance to vendors

 

Press enter to save the screen

 

 

You can create number of groups for the reporting purpose.

 

 

 

Name: Acccel Chemical

 

 

Under: Sundry Creditors

 

Press enter to save the screen

 

 

 

Name: Input vat@5%

 

 

Under: Duties & Taxes

 

Type of duty/Tax: VAT

 

VAT sub type: Input VAT

 

VAT/Tax Class: Input VAT@5%

 

Press enter to save the screen

 

 

 

Advance Payment entry: (30% on Total purchase order value of Rs.1,20,000)

 

Advance to Acccel Checmical Dr 36,000

 

To HDFC Bank A/c 36,000

 

 

 

 

Vendor Invoice Posting in Tally

 

You have to record the below accounting entry in Tally ERP9.

 

Purchase @5% Dr 1,20,000

 

Input Vat@5% Dr 6,000

 

To Acccel chemical 1,26,000

 

 

 

 

Payment to vendor after adjusting of advance payment

 

While releasing payment to vendor, buyer has to adjust advance paid amount against final invoice and remaining balance need pay.

 

Acccel Chemical Dr 1,26,000

 

To Advance to Acccel chemical 36,000

 

To HDFC Bank A/c 90,000

 

 

 

 

 

Related Topics

 

Advance Receipt from Customers in Tally ERP9

 

Sales Order Processing in Tally ERP9

 

Export Data from Tally to Excel or PDF

 

 

 

 

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  • What is Tally ERP9
  • How to Create Company in Tally ERP9
  • List of Ledgers and Groups in Tally ERP9
  • How to Create, Display, Alter and Delete Ledgers in Tally ERP9
  • How to Create, Display, Alter and Delete Group in Tally ERP9
  • Sales Voucher in Tally ERP9
  • Purchase Voucher in Tally ERP9
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