Recording a Payment Entry using Bank in Tally ERP 9

Payment Vouchers can be created using Bank as the mode of payment.

Go to Gateway of Tally > Accounting Vouchers

• Select F5: Payment from the Button Bar or press F5.

Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.  

On entering the party details and amount, the bank allocation screen appears as shown below:

The details in the bank allocation screen is captured as defined in the Provide Bank Details in the party master. However these details can be altered as shown below:

The fields that are to be filled vary with the Transaction Type selected.

• On selecting Inter Bank Transfer, the additional fields that appear are that of A/c No., IFSC Code, Bank and Transfer Mode.

• On selecting Same Bank Transfer, the additional field of A/c No. appears.

The additional field of Beneficiary Code appears on setting the option Allow to Beneficiary Code to Yes in F11: Features > Edit banking features > Banking Features. The field Beneficiary Code appears when the following Transaction Types are selected:

• Electronic Cheque
• Electronic DD/PO

• Inter Bank Transfer
• Same Bank Transfer

To view the e-mail ID of the party in the bank allocations screen, then in F12:Configure set the option Show E-Mail to Yes

The bank allocations screen with Beneficiary Code and E-mail ID appears as shown below:

Note: When recording a payment voucher using bank for two parties, in the bank allocation screen, the default of both the parties will be captured on setting the option Set Ledger wise Bank Allocation on Create Mode to Yes.

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Recording a Payment Entry with Narration for each Entry in Tally ERP 9

If you want the narration details for every ledger you debit or credit (Single narration), you can configure Tally.ERP's Narration details accordingly.

To activate the option Narration for each entry,

Go to Gateway of Tally > Accounts Information > Voucher Types > Alter

1. Select the required Voucher Type.
2. Enable the option Narrations for each Entry and accept the details.
3. Return to Accounting Vouchers in Gateway of Tally and select the voucher type and pass the entry.

Narration for each entry option is available for all Accounting Voucher Types.  Given below is an example of a Payment transaction with narrations for each entry enabled:

The above entry consists of both common narration and narrations for each entry.  In case of multiple debit/credit entries, you can give single line narration separately for every ledger account selected.

Special Keys for Voucher Narration Field

• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

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Recording a Payment Entry in Tally ERP 9

Payment Voucher is used to record all bank and cash payments, For example: company settles a creditor's bill by cheque.

To view the Payment Voucher entry screen:

Go to Gateway of Tally > Accounting Vouchers

• Select F5: Payment from the Button Bar or press F5.

Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.  

For example: the company settles expenses of Conveyance, Staff Welfare, Postage and Stationery through Cash in one voucher. This entry can be passed in single entry mode where you will be crediting the Cash Ledger only once and the entry appears as shown below.

Note: Similarly the transactions can be recorded in single entry mode even in Receipt and Contra vouchers.

Payment entry in Voucher entry mode:

When you have multiple Debits and Credits in an entry, Double Entry mode is the suggested way of passing the entry.

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Introduction to Payment Voucher in Tally ERP 9

Payment voucher is used to account all the payments made by the company by way of Cash/Bank. .

Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.  

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Use Payment or Receipt Voucher as Contra Voucher in Tally ERP 9

The Contra Voucher is used to indicate transfer of funds from

• Bank account to Cash account
• Bank account to Bank account
• Cash account to Bank account.
• Cash account to Cash account.

When you are passing a Payment voucher, you do not get the Cash and Bank Ledgers for selection in the list of Ledger Accounts on the Debit side and when you are passing a Receipt voucher, you do not get the Cash and Bank Ledgers for selection on the credit side.

However, for users who wish to use the Payment and Receipt vouchers for this nature of transaction, Tally.ERP 9 has the flexibility of defining Payment and Receipt behaviour as per Contra voucher.

Go to Gateway of Tally > Accounting Vouchers

1. Select F5: Payment from the Button Bar or press F5.
2. Set the option Use payment/receipt as Contra to Yes in F12: Configuration screen.

3. Click Accept to save.

Refer to F12: Configuration in Tally.ERP 9 for more details.

If the option Use Payment as Contra is set to Yes in the F12: Configure screen, the cash and bank accounts will be displayed for selection.

If the option Use Payment as Contra is set to No in the F12: Configure screen, the cash and bank accounts will not be displayed.

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Recording Contra Entry in Double Entry Mode in Tally ERP 9

The Contra voucher can be recorded using Double Entry mode where we have the option to select multiple Debits and multiple Credits. To select multiple Debit and Credit ledgers in the Double entry mode, set Use Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.

Refer to F12: Configuration in Tally.ERP 9 for more details.

Entering in Double Entry Mode

Go to Gateway of Tally > Accounting Vouchers

• Select F4: Contra from the Button Bar or press F4.

If you record the same entry (passed in single entry mode) in Double Entry Mode, it will be displayed as shown:

Similar to the Contra entry in Single Entry Mode,

In the Bank Allocation screen, users can select the mode of transaction from the List of Transaction Type as shown:

By default, Cheque/DD will be selected.
When Cash is selected as the Transaction Type, a new screen – Cash Denominations

The cash denominations entered here will be captured in the Cash Denomination details while printing a Cash Deposit Slip for this transaction.

The Difference field will give the difference between the total and and the sum of amounts specified for the Denominations.

Note: If the cash is transferred to more than one bank, then for each bank a separate Cash Denominations screen will appear.

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Recording Contra Entry in Single Entry Mode in Tally.ERP 9

The Contra Voucher can be recorded using Single entry mode or Double Entry mode.  To toggle between Single Entry and Double Entry mode, we need to change the setting Use Single Entry mode for Pymt/Rcpt/Contra to Yes/No in F12: Configure.

To view Contra Voucher creation screen in Single Entry mode:

Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra

For example, to transfer funds from Cash Account to Bank Account:

1. Debit the Bank Account
2. Credit the Cash Account

The entry will be displayed as shown.

In the Bank Allocation screen, users can select the mode of transaction from the List of Transaction Type as shown:

By default, Cheque/DD will be selected.

When Cash is selected as a Transaction Type, user can specify the cash denominations for the transaction in the voucher entry screen, if the optionShow Cash Denomination Details set to Yes in F12: Configuration (By default, this option is enabled)

During Bank Allocation, a new screen – Cash Denominations will appear for Cash Transaction Type.

The cash denominations entered here will be captured in the Cash Denomination details while printing a Cash Deposit Slip for this transaction.

The Difference field will give the difference between the total and the sum of amounts specified for the Denominations.

Advantages of Single Entry Mode:

• Faster data entry.
• When there is a Single Debit and Multiple Credits in the entry.

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