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.

Example:

• 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