1. Understanding the Accounting for a Decrease in Purchase Value in TallyPrime
A decrease in purchase value can occur due to various reasons, such as:
- Price Reduction: The supplier offers a discount or reduces the price of the product.
- Return of Goods: Some goods are returned to the supplier.
- Errors in the Original Purchase: Mistakes in the original purchase entry may need to be corrected.
2. Methods to Account for the Decrease in Purchase Value in TallyPrime:
Method 1: Creating a Credit Note
1. Create a Credit Note:
- Go to Gateway of Tally > Vouchers > Press F8 (Sales).
- Select the “Credit Note” voucher type.
2. Enter Party Details:
Enter the supplier’s name.
3. Select Bill-wise Details:
Select the original purchase invoice for which the value is decreasing.
4. Enter the Decreased Amount:
- Enter the amount to be reduced from the original purchase value.
- Specify the reason for the decrease, such as “price reduction” or “return of goods”.
5. Save the Credit Note:
Press Ctrl+A to save the credit note.
Method 2: Creating a Journal Entry
1. Create a Journal Entry:
Go to Gateway of Tally > Vouchers > Press F11 (Journal).
2. Enter Journal Entries:
- Debit: Supplier’s Account (to reduce the amount owed to the supplier)
- Credit: Purchase Account (to reduce the purchase value)
- Credit: Any other relevant accounts (e.g., Input Tax, Additional Charges)
3. Save the Journal Entry:
Press Ctrl+A to save the journal entry.
3. Example of Accounting for a Decrease in Purchase Value in TallyPrime:
Let’s assume you purchased 10 units of a product for Rs. 100 per unit. Later, the supplier offers a discount of Rs. 10 per unit.
1. Using Credit Note:
- Create a credit note against the original purchase invoice.
- Enter the total discount amount of Rs. 100 in the credit note.
2. Using Journal Entry:
- Create a journal entry:
- Debit: Supplier’s Account – Rs. 100
- Credit: Purchase Account – Rs. 100
By using either of these methods, you can accurately account for the decrease in purchase value in TallyPrime.
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