Order Processing System in Tally Prime

Order Processing in Tally Prime

What is Inventory?

Inventory is used to maintain stock with all the items, goods and raw materials that a company has on hand for sale or use in the production of goods for sale. Inventory determines how many products a brand can make and sale. Controlling our inventory strategically will ensure us about too much or too less or little stock.

Order Processing:

Order Processing refers to placing orders with suppliers for purchasing from them or receiving orders from customers for the purpose of selling. In Tally Prime, Order Processing is linked to Inventories.
Using Order processing you can:

Track the order position of a stock item;
Know whether the goods ordered have arrived or not;
Know whether the orders have been delivered on time or delay if any.

Now we will learn the method of recording and linking purchase orders to purchase invoice and sales orders to sales invoices. We will also learn how to display outstanding orders and the effect of orders on stocks.
Purchase Order Cycle:

Example Question:
Raise a Purchase Order on 15-2-2022 for Sukhma Bricks (vide Order No. 1) for 5,000 pcs of Bricks @ Rs.3 /brick. (Godown - Warehouse). The due date is 26-2-2022 and additional Freight charges @ 3% is applicable.
Steps

1: Create New Company

2: Create Ledgers

Ledger Name: Sukhma Bricks Under Sundry Creditors with Maintain Balances bill-by-bill set to Yes. Another ledgers are Purchase A/c under Purchase A/c, Freight charge@3% under Direct Expenses

3. Create Stock Item using GOT-->Create-->Stock Items

4. Enable Order Processing feature.

Gateway of Tally >Vouchers > F10 (Others vouchers)
List of Vouchers: Show Inactive Vouchers
Purchase order: Ctrl + F9 (Press It)
Need to activate Purchase Order Voucher Type: Activate Now: Yes\

5. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Purchase Order.
Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Purchase Order.
In case the voucher is inactive, you will be prompted to activate the Purchase Order voucher type. Select Yes or press Y to proceed.

●  Party's A/c Name: Sukhma Bricks
●  Order No: pur/ord/01 This particular Order No. field is an additional field to record the order number.
●  Name of the item: Bricks. Press Enter and the Item allocation sub-screen appears.

Due on: 1-4-22 (It is the due date for the delivery of the item. This will enable the monitoring of outstanding deliveries. The order can be split for delivery on different dates).
Location:Warehouse. (Only when the multiple location feature is active, this field is required to be given, else it does not appear.)

Quantity, Rate and Amount - 5,000 Pcs @ 3 per Pcs

Select Freight Charges at 3% on the item value.

6. Now display Purchase Order Outstanding using following method.

Press Alt+G (Go To) > type or select any of the Purchase Order Reports.
Alternatively, Gateway of Tally > Display More Reports > Statements of Inventory > Purchase Order Outstandings > choose the report to view.

Press F1 for details. After then following screen will appear.

At this stage Stock Summary does not display any stock. When receive goods then perform this entry using Receipt Note.
Receipt Note Entry

GOT--> Voucher--> Receipt Note (Alt+F9) Select Purchase Order No. from List of orders.

7. Now display Stock Summary using GOT--> Stock Summary

8. You should perform purchase entry to receive bill of purchase. Because tally ERP9 will display Purchase Bills Pending regarding this order until perform purchase entry.
To display Purchase Bills Pending report go to GOT--> Display--> Statements of Inventory--> Purchase Bills Pending

9. To clear Purchase Bills Pending we will create Purchase entry.
GOT--> Vouchers--> F9
* Party's A/c Name: Sukhma Bricks
* List of Tracking Numbers select 1 under Receipt Note No.

*Type of Reference : Select Agst Ref. and pick pur/ord/01

After this transaction Purchase Bills Pending will be cleared.

10. Now perform Payment entry to complete Purchase Order Cycle and clear Liability.
GOT--> Vouchers--> F5
Select Sukhma Bricks in Dr(By)
Type of Ref. select Agst Ref. and pick Pending Bills order number under Bill wise Details
Select Cash in Cr(To)

Sales Order Cycle:

Sales Order Processing:
Enter a Sales Order on 16-2-2022 for Raj Traders (vide Order No. sal/ord/01) for 4,000 pcs (godown - Warehouse) of Bricks @ Rs. 5 /brick. The due date is 27-2-2022 and tax @ 17.5% is applicable.

Create Sales Order (Ctrl+F8)

Go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Sales Order.
You can activate the Sales Order voucher type if the voucher is inactive by selecting Yes or pressing Y when prompted.

1. Create Ledger of Raj Traders under Sundry Debtor
2. Create Ledger of Tax @ 17.5% under Duties & Taxes and Type of Duty/Tax: Other
3. Create Ledger of Sales a/c under Sales A/c

4. Party's A/c Name: Raj Traders
5. Order No: Enter Sal/ord/01 - The voucher number is automatically displayed here but you are allowed to change it, because this particular Order No. field is for the customer's order number which is most likely to be different from the voucher number.
6. Name of the item: Bricks. Press Enter and the Item allocation sub-screen appears.

Due on: 27-2-22. The due date for delivery of the item. This will enable monitoring of out-standing deliveries. The order can be split for delivery on different dates.
Location: Store.
Quantity, Rate and Amount @4000 Pcs @ 5 per Pc allocate to Sales Account.

7. Now display Sales Order Outstandings using following method.
GOT--> Display--> Statements of Inventory--> Sales Order Outstandings--> Stock Group--> Primary
Press F1 for details. After then following screen will appear.

8. Now Deliver goods to Debtor GOT--> Voucher--> Delivery Note (Alt+F8)

Select Sales Order No. from List of orders.

Go to Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select

Delivery Note voucher type if the voucher is inactive by selecting Yes or pressing Y when prompted.

Now Delivery Note entry screen will appear.

Stock Summary using GOT--> Stock Summary

You should Raise Bill for Debtor. Because tally Prime will display Sales Bills Pending regarding this order until perform Sales entry.
To display Sales Bills Pending report go to GOT--> Display--> Statements of Inventory--> Sales Bills Pending

9. To clear Sales Bills Pending we will create Sales entry.
GOT--> Vouchers--> F8
* Party's A/c Name: Raj Traders
* List of Tracking Numbers select 1 under Delivery Note No.

select 1 under Delivery Note No.

Type of Refference : Select Agst Ref. and pick 1

After this transaction Sales Bills Pending will be cleared.
10. Now perform Receipt entry to complete Sales Order Cycle and clear Liability.
GOT--> Vouchers--> F6
Select Cash in Dr(By)
Type of Ref. select Agst Ref. and pick Pending Bills order number under Bill wise Details
Select Raj Traders in Cr(To)