Payments to the Principal in TallyPrime: 5 Steps + 1 Easy Example

1. Understanding the Payments to the Principal in TallyPrime

When you sell goods received from a principal, you typically need to remit the sale proceeds to the principal, minus any commissions or fees.

2. Steps to Record Payments to the Principal in TallyPrime:

1. Create a Payment Voucher:

Go to Gateway of Tally > Vouchers > Press F6 (Payment).

2. Enter Party Details:

Select the principal’s ledger account.

3. Select Payment Mode:

Choose the payment mode (e.g., cash, bank transfer, cheque).

4. Enter Amount:

Enter the amount to be paid to the principal, which is typically the sale proceeds minus any commissions or fees.

5. Save the Payment Voucher:

Press Ctrl+A to save the payment voucher.

3. Example of Payments to the Principal in TallyPrime:

Let’s say you sold goods worth Rs. 10,000 on behalf of a principal.

After deducting a 10% commission, you need to pay the principal Rs. 9,000.

1. Create a Payment Voucher:

• Go to Gateway of Tally > Vouchers > Press F6 (Payment).
• Select the principal’s ledger account.
• Choose the payment mode (e.g., bank transfer).
• Enter “9,000” as the amount to be paid.
• Save the payment voucher.

4. Key Points:

• Reconciliation: Regularly reconcile the payments made to the principal with your sales records.
• Commission Adjustment: If you’re earning a commission, ensure that the commission amount is deducted from the payment to the principal.
• Inventory Adjustment: If you’re holding inventory on consignment, adjust your inventory records accordingly.
• Tax Implications: Consider any applicable taxes and duties on the sales and payments.

By following these steps, you can accurately record payments to the principal in TallyPrime, ensuring that your financial records are up-to-date and accurate.