Purchase Order Vs Purchase Voucher in TallyPrime: Easily Explained

Here’s how purchase orders relate to purchase vouchers in TallyPrime, explained with an example:

1. Purchase Orders: Initial Commitment to a Supplier

  • Purpose: To record an order placed with a supplier before actual receipt and payment.
  • Key Information: Supplier details, ordered items, quantities, rates, expected delivery/payment dates.
  • Voucher Type: Purchase Order (accessible under Other Vouchers).

2. Purchase Vouchers: Actual Receipt and Accounting

  • Purpose: To record the receipt of goods or services, generate a purchase invoice, and update accounts for inventory and liabilities.
  • Key Information: Supplier details, received items, quantities, rates, invoice date, taxes, payment terms.
  • Voucher Type: Purchase Voucher.

3. Relationship: From Purchase Order to Purchase Voucher in TallyPrime

1. Creating a Purchase Order:

  • You order 50 keyboards from Supplier XYZ at ₹1,000 each.
  • You create a Purchase Order voucher in TallyPrime, recording the order details.

2. Recording the Purchase (Reference to Purchase Order):

  • When keyboards arrive, you create a Purchase Voucher.
  • Instead of manually entering supplier and item details, you:
    • Press F12 (Configure).
    • Enable “Provide Order Details.”
    • Select the relevant Purchase Order number.
    • TallyPrime automatically populates supplier and item details from the order.
    • Adjust quantities or rates if needed.
    • Save the Purchase Voucher, generating the purchase invoice and updating accounts.


  • Purchase Order:
    • Supplier: XYZ Suppliers
    • Items: 50 keyboards
    • Rate: ₹1,000 each
    • Total: ₹50,000
  • Purchase Voucher:
    • References Purchase Order number
    • Records receipt of 50 keyboards
    • Generates purchase invoice for ₹50,000 (including applicable taxes)
    • Updates accounts for inventory and payables

4. Benefits of Using Purchase Orders with Purchase Invoices in TallyPrime:

  • Efficient purchase process
  • Reduced manual data entry
  • Accurate tracking of orders and purchases
  • Enhanced inventory management
  • Improved supplier communication
  • Better financial reporting


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