Creating a Party Ledger

Party Accounts should be opened under Sundry Debtors or Sundry Creditors group with whom your company is trading.

Customers (Sundry Debtors) who buy goods or services for cash or on credit. Suppliers (Sundry Creditors) who supply goods and services for cash or on credit.

To create a Party Ledger,

Go  to Gateway of Tally > Accounts Info > Ledgers > Create

After entering relevant details, the completed ledger is as shown below:

Each option in the Party Ledger Creation screen is explained below:

Currency of Ledger: Tally.ERP 9 allows you to maintain Ledgers in any currency and the amount is reflected in the selected currency. But it is strongly advised that you maintain the currency of the Ledger as the Base currency.  

Only foreign currency bank accounts are maintained in foreign currency and other ledgers are maintained in Base Currency. Nevertheless you can enter transactions in any other currency.

To create/maintain ledgers in multiple currency, set Allow Multi Currencies to Yes under F11: Features.

You can always create a new currency from this field by pressing Alt+C.

For more information on Currencies, refer Multi-Currency.

Maintain Balances Bill-by-Bill: This option is applicable when you want the balances to be maintained Bill by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is displayed as shown:

Date: Since you are giving the break-up of the Opening Balance, the date of the bill would naturally be prior to the accounting period. By default Tally.ERP 9 takes last date of your previous accounting period, e.g., 31 March 2008. Change it, if necessary.

Name: Enter a Name to which you can later refer when adjusting the bill. You can enter the Bill number or Document number.

Due date (or credit days): For the Ledgers under Sundry Debtors and Creditors, give the credit period or the date when the bill is due.

Note: During transaction entry, there would be another concept-that of effective date. If you opt for using effective dates instead of bill dates the due date would be calculated accordingly.

Amount: For the amount of the bill due, you can give particulars of all the pending bills one by one.

If the total amount of all your bills covers the Opening Balance, the On Account becomes NIL. You could have Bills totaling beyond the Opening Balance. In the screen shown below, there are two bills 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account.

Default Credit Period:

The Credit period may be given for Sundry Debtors and Sundry Creditors. The number of Credit days or period can be defined in various ways:

Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc.. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.

Cost Centres are applicable: Tally's concept of Cost Centres  allows an additional dimension to a transaction.

You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes.

Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account.

Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Statutory Information: This functionality is available only, if you have enabled at least one of the options under F11: Features> F3: Statutory & Taxation. Based on the options enabled under F3: Statutory & Taxation, the respective fields will be displayed in the Statutory Information section.

Mailing Details: is applicable only for party accounts like Sundry Debtors, Creditors and Branch Divisions, Branch/Divisions, Bank & Bank OCC A/c, Loans & Advances Assets, Loans & Advances Liabilities, Secured & Unsecured Loans, etc. These are used in mailing outputs like statement of accounts.

Provide Bank Details: The option has to be enabled to define Bank Details for the Party. On setting this option to Yes, the Bank Details screen appears. Enter Bank Details as shown below:

B: Hide Beneficiary Code can be clicked to hide the Beneficiary Code. To display the Beneficiary Code, click B: Show Beneficiary Code

To configure more than one Bank for a Party ledger, press Enter and record Bank details in the relevant fields, as required.

Tax Information: The Tax Information consists of the default fields PAN/IT No., Name on PAN/IT No. and the TIN/SALES Tax No. Based on the features you enable in F11: Features> F3: Statutory & Taxation, additional fields will appear under Taxation.

Other Information: In this section information of the relationship and enterprise type of the party with whom the transaction carried out is entered.

Note: Other Information section will be displayed in Ledger Master Creation screen only when the option Use Other Information for Ledger Accounts is set to Yes in F12: Ledger Configuration


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