Payments in Double Entry mode

You can record your payments using double entry mode in TallyPrime. In double entry mode, you need to decide which account to debit and which account to credit. You can use double entry mode if you are familiar with the accounting rules. Suppose you are making a payment for your regular business expenses. You need to debit the expense ledgers one after the other along with their corresponding amounts and credit the cash, bank, or petty cash account from where you are making the payment.

You can record all entries in double-entry mode by selecting the ledger to be debited and credited correctly. In TallyPrime, you can also convert a payment voucher to a Journal Voucher by pressing F7, and you can see the entry in the double-entry mode under the Journal Voucher as well. In this example, we are recording payment of regular business expenses through Petty Cash.

In TallyPrime, when you switch a voucher to double-entry mode, this setting will be saved, and all future vouchers will open in double-entry mode by default. However, to ensure that any changes you make are retained, you must have full access to the configuration file located in the Tally installation folder. Without this access, your settings modifications won’t be preserved. Once you have complete access to the Tally installation folder, any adjustments or setting changes you make in TallyPrime will be saved permanently.

1. Open the Payment Voucher in double entry mode.
   1. Press Alt+G (Go To) > Create Voucher > press F5 (Payment).
      Alternatively, Gateway of Tally > Vouchers > press F5 (Payment).
   2. Press Ctrl+H (Change Mode) > select Double Entry.
2. Select the Bank/Cash accounts and Party or Expenses accounts.
   1. Debit the Expense ledgers and enter the corresponding amounts.
   2. Credit the Petty cash ledgers, and enter the corresponding amounts.
      
3. Accept the screen. As always, you can press Ctrl+A to save the payment voucher.

When you are recording any transaction in TallyPrime, you can write a narration for the transaction entered for future reference. But TallyPrime also provides you with the option to enter narration for each ledger while you are recording the transaction.

Suppose you are making a payment for wages from a single wage account, and you have debited the wages account and credited the cash or bank ledger. In this scenario, you cannot understand to whom you have paid the wage, so you can enable the option of providing narration for each ledger from the Payment Voucher Type and mention the name of the person to whom you paid the wages in the narration section of the ledger. This option is available for all the accounting voucher types.

1. In the Voucher Type Alteration screen for Payment, enable Provide narrations for each ledger in voucher and save.
   
2. Open the Payment Voucher.
   Press Alt+G (Go To) > Create Voucher > press F5 (Payment).
   Alternatively, go to Gateway of Tally > Vouchers > press F5 (Payment).
3. Select the Ledgers. The Narration field appears for each ledger.
4. Enter the required Narration, and the amount for each ledger.
   
5. Accept the screen. As always, you can press Ctrl+A to save the payment voucher.

Print Payment Vouchers for Expenses

After recording a payment voucher, you can print the voucher to keep a record of the sundry payments made by you. In TallyPrime, you can choose to print a voucher later or immediately after saving the voucher. If you want to print the payment vouchers immediately, you can enable the option Print voucher after saving from the Voucher type alteration screen. In your business, you might be paying daily wages to your employees through cash, you can print the payment voucher and get it signed by your employees as proof of payment made to them. 

To print the Payment Vouchers:

• Record the payment entry.
• In the payment voucher, press Ctrl+P and the Print screen appears.
  You can select C (Configure), I (Preview), or P (Print).

To print vouchers immediately after saving:

1. In the Payment Voucher Type, enable Print voucher after saving.
2. Record a payment voucher and accept the screen.
   The Print screen appears, and you can select C (Configure), I (Preview), or P (Print).
   

Payment Register

In TallyPrime, you can go to the Payment Register to view the payment entries recorded. It is a monthly report and shows the number of transactions recorded per month. You can drill down and view the transactions recorded, and you can also make changes to the vouchers if required. If you use a Journal Voucher to record your payment transactions, you can view them in the Journal Register. 

1. Open the Payment Register.
   Press Alt+G (Go To) > type or select Payment Register > and press Enter.
   Alternatively, Gateway of Tally > Display More Reports > Account Books > Payment Register.
   
2. Select the required month and press Enter.
   You can see the list of transactions for that particular month. You can further drill down and see the vouchers recorded.

You can configure the report and view it as per your requirement. You can see the related reports as well as exception reports.

• Press Ctrl+H (Change View) to see the Payment Register in columns with all the expenses ledgers as headers and extract the report. You can view related reports such as Post-Dated Bank Transactions.
  You can also press F8 (Columnar) to view the report in columns.
  
• Press Ctrl+J (Exception Reports) to see the Optional Vouchers, Cancelled Vouchers, Post-Dated Vouchers.

Record a Receipt Voucher

You can use a receipt voucher to record cash and bank receipts. You can record using Single Entry or Double Entry mode.