Interest Calculation in Tally ERP9

Interest will be calculated on outstanding receivable or payable. Interest can be calculated on the basis of simple or compound interest in Tally.ERP9.

 

 

Enable Interest Calculations in Tally ERP9

 

Path: Gateway of Tally -> F11 Features -> Accounting Features

 

Activate Interest Calculation: Yes

 

 

Press enter to save the screen

 

 

 

Create Party Ledger

 

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

 

 

Name: Sharath & co

 

Under: Sundry Debtors

 

Default credit period: 30 days

 

Activate Interest Calculation: Yes, once activate this option then the below screen will appear

 

Press enter to save the screen

 

 

 

Calculate Interest Transaction-by-Transaction: Yes, Interest will calculate on each transaction.

 

Override Parameters for each Transaction: Yes, by activating this option you can able to change parameters i.e. rate of interest and interest style during the voucher.

 

Rate: Enter rate of interest 

 

Per: There are four interest styles given by tally, select accordingly as per the requirement

 

• 30 day month
• 365 day Year
• Calendar Month
• Calendar Year

 

 

 

Recording of Sales Transaction in Tally ERP9

 

Path: Gateway of Tally -> Accounting vouchers -> F8 Sales (Voucher mode)

 

 

Debit the party account name and credit the sales and GST tax ledgers.

 

Press enter to save the screen

 

 

 

Check Simple Interest Calculations

 

Path: Gateway of Tally -> Display -> Statement of Accounts -> Interest Calculations -> Interest Receivable

 

 

 

 

To Record Interest in Books of Accounts 

 

You can record the calculated interest in books of accounts by using debit note in Tally.ERP9.

 

Path: Gateway of Tally -> Accounting Vouchers -> Debit note

 

 

Debit the party account and credit the interest received account.

 

Press enter to save the screen

 

 

 

 

Related Topics

 

Budgets in Tally ERP9

 

Cost Centre and Cost Category in Tally ERP9

 

Export Data from Tally to Excel or PDF