A Voucher Entry is the process of recording a business transaction in Tally Prime using the appropriate voucher type.
Every business transaction needs to be recorded accurately so that the related ledgers, Trial Balance, Profit & Loss Account, Balance Sheet, and other reports are updated correctly.
Business Transaction → Voucher Entry → Ledger → Reports
Voucher entries are the foundation of accounting in Tally Prime.
They help businesses:
Common accounting voucher types include:
Each voucher is used for a particular type of transaction.
A Payment Voucher is used to record money paid by the business.
Business pays ₹10,000 rent in cash.
Rent A/c Dr. ₹10,000
To Cash A/c ₹10,000
In Tally Prime, this transaction is recorded through a Payment Voucher.
A Receipt Voucher is used to record money received by the business.
Business receives ₹20,000 from a customer through bank.
Bank A/c Dr. ₹20,000
To Customer A/c ₹20,000
This is recorded using a Receipt Voucher.
A Contra Voucher is generally used for transactions involving the transfer of funds between the business’s own cash and bank accounts or between its bank accounts.
Cash of ₹15,000 is deposited into the bank.
Bank A/c Dr. ₹15,000
To Cash A/c ₹15,000
This is recorded using a Contra Voucher.
A Journal Voucher is generally used for adjustment entries and transactions that do not fit naturally into specialized vouchers.
Depreciation on machinery = ₹5,000
Depreciation A/c Dr. ₹5,000
To Machinery A/c ₹5,000
This can be recorded using a Journal Voucher.
A Sales Voucher is used to record the sale of goods or services.
Goods sold for ₹50,000 plus applicable GST.
The Sales Voucher records:
For a properly configured GST transaction, Tally Prime can calculate the applicable tax based on the details entered.
A Purchase Voucher is used to record purchases of goods or services.
Goods purchased for ₹30,000 plus applicable GST.
The Purchase Voucher records:
A Credit Note is generally used when the business needs to reduce the amount previously charged to a customer or record a sales return or other eligible adjustment.
A customer returns goods worth ₹5,000.
A Credit Note may be used to record the sales return, with the appropriate tax adjustment where applicable.
A Debit Note is generally used for certain purchase-related adjustments, including purchase returns or additional amounts recoverable from a supplier, depending on the transaction.
Goods worth ₹3,000 are returned to a supplier.
A Debit Note may be used to record the purchase return, with the appropriate tax adjustment where applicable.
A Voucher Number is an identification number assigned to a voucher.
It helps users:
Voucher numbering can be configured according to the business’s requirements.
The Voucher Date is the date on which the transaction is recorded for accounting purposes.
For example:
If rent is paid on 15 August 2026, the appropriate voucher date should reflect the actual transaction date, subject to the business’s accounting practices.
Correct dates are important for:
Narration is a short description explaining the purpose or details of a transaction.
For a rent payment:
“Being office rent paid for August 2026.”
Narrations make transactions easier to understand during future verification.
Tally Prime follows the double-entry accounting system.
This means every accounting transaction has at least:
Cash purchase of goods for ₹10,000:
Purchases A/c Dr. ₹10,000
To Cash A/c ₹10,000
Debit = ₹10,000
Credit = ₹10,000
Therefore, the accounting entry remains balanced.
Paid salary of ₹25,000 by bank.
Salary A/c Dr. ₹25,000
To Bank A/c ₹25,000
Payment Voucher
Received ₹15,000 from a customer through bank.
Bank A/c Dr. ₹15,000
To Customer A/c ₹15,000
Receipt Voucher
₹20,000 cash deposited into bank.
Bank A/c Dr. ₹20,000
To Cash A/c ₹20,000
Contra Voucher
Depreciation charged on machinery = ₹10,000.
Depreciation A/c Dr. ₹10,000
To Machinery/Accumulated Depreciation A/c ₹10,000
Journal Voucher
Suppose goods are sold for:
Taxable Value = ₹1,00,000
GST @ 18%:
GST = ₹18,000
Total Invoice Value:
₹1,18,000
For an intra-state transaction, the GST may generally consist of:
CGST = ₹9,000
SGST = ₹9,000
The Sales Voucher records the sales value and applicable tax components.
Suppose goods are purchased for:
Taxable Value = ₹50,000
GST @ 18%:
GST = ₹9,000
Total:
₹59,000
For an intra-state transaction:
CGST = ₹4,500
SGST = ₹4,500
The Purchase Voucher records the purchase and applicable GST details. Eligibility for ITC depends on the applicable GST conditions.
The general process is:
Open or select the required company.
Go to the Vouchers section.
Choose the appropriate voucher:
Enter the correct transaction date.
Select the appropriate debit and credit accounts.
Enter the transaction amount.
Enter GST, inventory, invoice, party, or other required details.
Enter a short explanation of the transaction.
Review the entry and save the voucher.
A simple rule is:
| Transaction | Voucher |
|---|---|
| Money paid | Payment |
| Money received | Receipt |
| Cash ↔ Bank transfer | Contra |
| Adjustment entry | Journal |
| Sale of goods/services | Sales |
| Purchase of goods/services | Purchase |
| Sales return/eligible sales adjustment | Credit Note |
| Purchase return/eligible purchase adjustment | Debit Note |
Beginners should be careful about:
Always select the voucher that matches the nature of the transaction.
Select the correct customer, supplier, expense, income, asset, or liability ledger.
Verify the transaction amount before saving.
Use the correct transaction date.
Check GST classification, GSTIN, tax rate, and other relevant details where applicable.
A clear narration can make future verification easier.
Avoid recording the same transaction twice.
Voucher entry is one of the most important practical skills in Tally Prime.
Once students understand voucher entries, they can practically perform accounting tasks such as:
Remember:
Company Creation → Group Creation → Ledger Creation → Voucher Entry → Ledger Posting → Trial Balance → Final Accounts → Reports
GST in Tally Prime refers to using Tally Prime to record, calculate, and manage GST-related transactions for a business.
Tally Prime can help businesses maintain GST information for purchases, sales, input tax, output tax, invoices, and GST-related reports.
For accurate GST accounting, the company, ledgers, stock items, tax rates, GSTINs, and transaction details must be configured correctly.
Before recording GST transactions, the company should be configured with the required GST information.
Proper configuration helps Tally Prime:
Incorrect configuration can result in incorrect tax calculations and reports.
Depending on the business and applicable GST requirements, you may need information such as:
The exact information required depends on the nature of the business and the GST provisions applicable to it.
The general process is:
Open Company → Company Features/Taxation Settings → Enable GST → Enter GST Details → Save
After enabling GST, configure the relevant GST details for:
The exact menu names can vary depending on the Tally Prime version.
GSTIN stands for Goods and Services Tax Identification Number.
For a GST-registered business, the GSTIN is entered in the appropriate company GST configuration.
GSTIN: 07XXXXXXXXXXXXXX
The GSTIN used in Tally Prime should exactly match the business’s valid GST registration details.
The GST registration type tells Tally Prime how the business is registered under GST.
Depending on the circumstances, a business may have a registration type such as:
The correct registration type should be selected according to the business’s actual GST registration status.
HSN stands for Harmonized System of Nomenclature.
HSN codes are used to classify goods for GST purposes.
For example, when selling a product, the appropriate HSN code may be required on the invoice depending on applicable GST rules.
HSN details help in:
SAC stands for Services Accounting Code.
SAC is used to classify services for GST purposes.
For example, a business providing professional or consulting services may need to use the appropriate SAC according to the nature of the service.
The GST rate is the percentage of GST applicable to a particular supply.
Different goods and services can have different GST rates.
When configuring GST in Tally Prime, the appropriate rate should be selected according to the current GST classification and applicable government provisions.
Taxable Value = ₹10,000
GST Rate = 18%
GST:
₹10,000 × 18% = ₹1,800
Input GST represents GST paid on eligible business purchases.
For example:
Purchase = ₹50,000
GST @ 18% = ₹9,000
Tally Prime can record the ₹9,000 as input tax according to the transaction and configuration.
If the business is eligible for ITC, this input tax may be used to reduce output GST liability subject to applicable GST conditions.
Output GST is the GST charged by a business on taxable sales or other outward supplies.
Sales = ₹1,00,000
GST @ 18% = ₹18,000
The ₹18,000 is output GST.
Tally Prime records the relevant tax components according to the transaction type and GST configuration.
For an eligible intra-state supply, GST is generally divided into:
Taxable Value = ₹1,00,000
GST = 18%
Total GST = ₹18,000
Generally:
CGST = ₹9,000
SGST = ₹9,000
Tally Prime can calculate these components when the transaction is correctly configured.
IGST (Integrated Goods and Services Tax) is generally applicable to eligible inter-state supplies.
Goods sold from Delhi to Haryana:
Taxable Value = ₹1,00,000
GST @ 18% = ₹18,000
Generally:
IGST = ₹18,000
Tally Prime can calculate the appropriate tax based on the company, party, place-of-supply, and transaction details.
Suppose a business purchases goods worth:
₹50,000 + GST @ 18%
GST = ₹9,000
For an intra-state purchase:
CGST = ₹4,500
SGST = ₹4,500
Purchases A/c Dr. ₹50,000
Input CGST A/c Dr. ₹4,500
Input SGST A/c Dr. ₹4,500
To Supplier A/c ₹59,000
In Tally Prime, the Purchase Voucher is used to record the transaction with the required GST details.
Suppose a business sells goods worth:
₹1,00,000 + GST @ 18%
GST = ₹18,000
For an intra-state sale:
CGST = ₹9,000
SGST = ₹9,000
Customer A/c Dr. ₹1,18,000
To Sales A/c ₹1,00,000
To Output CGST A/c ₹9,000
To Output SGST A/c ₹9,000
The Sales Voucher records the transaction in Tally Prime.
Suppose goods worth ₹80,000 are sold to a customer in another state at 18% GST.
GST:
₹80,000 × 18% = ₹14,400
The applicable tax would generally be:
IGST = ₹14,400
The Sales Voucher should contain the correct customer, place-of-supply, sales, and GST details.
Input Tax Credit (ITC) is the eligible GST credit available on qualifying purchases and expenses.
Tally Prime can help track input tax so that the business can determine its GST position.
Output GST = ₹30,000
Eligible Input GST = ₹18,000
Net liability:
₹30,000 − ₹18,000 = ₹12,000
Therefore, the business may have a net GST liability of ₹12,000, subject to applicable ITC rules and utilization provisions.
Tally Prime can be used to create invoices containing GST-related information.
A GST invoice may include:
The exact invoice requirements depend on the applicable GST rules.
Tally Prime can provide GST-related reports and information that help businesses review their transactions and prepare data for applicable GST return filing.
These reports can help analyze:
Users should verify the data before filing returns.
GST Reconciliation means comparing the GST information recorded in the books with relevant GST records and return-related data.
It helps identify:
Regular reconciliation helps improve GST compliance and accounting accuracy.
Suppose:
Purchase Value = ₹50,000
GST @ 18% = ₹9,000
Sales Value = ₹1,00,000
GST @ 18% = ₹18,000
Assuming the full purchase GST is eligible as ITC:
Output GST = ₹18,000
Eligible Input GST = ₹9,000
Net GST Liability = ₹18,000 − ₹9,000
= ₹9,000
Tally Prime can help record these transactions and present the relevant GST information in reports.
Beginners should avoid:
Always verify the applicable GST rate.
Enter the correct GSTIN of the business and customer/supplier where required.
Use the appropriate classification.
Correct place-of-supply information is important for determining the applicable GST treatment.
Select the correct sales, purchase, customer, supplier, and tax ledgers.
Avoid recording the same invoice more than once.
Always review GST reports and reconcile relevant records before filing.
Learning GST in Tally Prime gives students practical knowledge of how GST works in real-world accounting.
Students can learn to:
Remember:
Company GST Setup → GST Ledgers/Tax Configuration → HSN/SAC & Rates → Customer/Supplier Setup → Purchase Entry → Sales Entry → Input/Output GST → Eligible ITC → GST Reconciliation → GST Reports & Compliance
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