Bill settlement in TallyPrime software.ppt

Bill settlement in Tally Prime

1. BILL SETTLEMENT By Faisal Khan TCH -15

2. What Is Bill Settlement Usually, the company buys and sells goods on a credit basis from parties. We can use purchase and sales vouchers to enter the transactions said earlier. Then, Tally generates outstanding reports for payable and receivables automatically.

3. What are Bills Receivable Bills Receivable refers to the amount that a company is entitled to receive from its customers for Goods and Services sold on credit. Accounts Receivables are also known as Debtors, Trade Debtors, Bills Receivables or Trade Receivables.

4. What are Bills Payable When you Buy Goods and Services with an arrangement to Pay later , such an Amount till it is paid, is referred to as Accounts Payable. Accounts Payable is also called as Bills Payable, Sundry Creditors.

5. Use credit period: To ensure that all the credits are tracked systematically, it is always advisable to maintain your accounts by specifying the credit period or due date for the party. You can specify a credit period of say 30 days in the party ledger for the party to make the payments. On recording a credit sale for such parties, TallyPrime reflects the pending amount and the due date based on the credit period specified for the party. This helps to avoid conflicts with your parties, systematically track your outstanding receivables, and recover the payments from your parties on time

6. Use credit limit : Just like the credit period, TallyPrime also provides you with the facility to set a credit limit for parties. If the credit limit is exceeded then while passing the transaction, TallyPrime prompts the exceeding amount for the user to make sure that the pending bills of that party are cleared first as it has exceeded its set credit limit. You can also alter the credit limit in the party ledger and override it if required .

7. Bills Receivable Vs Bills Payable Receivables Payables Money owed to your Business Money you own to your Supplier Current Asset Current Liability Sundry Debtors Sundry Creditors

8. How to Check Bills Receivables and Bills Payables IN CASE OF RECEIVABLES :- GOT > D isplay More Reports > S tatements of Accounts > O ustandings > R eceivables IN CASE OF PAYABLES:- GOT > D isplay More Reports > S tatements of Accounts > O ustandings > P ayables

9. Scenario 1 st April Started Business with SBI Bank Rs.20,00,000. 1 st April Purchased Goods from Rahul Provisions Item Name Quantity Rate Nokia-G21 10 NOS 18,500 Samsung Galaxy 1 5 NOS 25,000 Item Name Quantity Rate LG Washing Machine 15 NOS 23,800 Samsung Refrigerator 10 NOS 43,300 1 st May Purchased Goods From Rohit Traders

10. 1 st May Sold Goods to Kishore Enterprises Item Name Quantity Rate Nokia-G21 8 NOS 19,500 Samsung Galaxy 1 3 NOS 28,000 Item Name Quantity Rate LG Washing Machine 12 NOS 25,000 Samsung Refrigerator 8 NOS 46,000 1 st May Sold Goods to Mohan Corporations 31 st Dec Settle all the bills agst Receivable and Payable via SBI Bank