Sales of Goods by a Third Party in TallyPrime: 2 Easy Methods

Table of Contents

1. Understanding Third-Party Sales in TallyPrime

When a third party sells goods on your behalf, it’s crucial to record the sale in your accounting system to accurately reflect your revenue and inventory.

In TallyPrime, you can record these sales in a few different ways, depending on the specific circumstances.

Method 1: Consignment Sales in TallyPrime

If you’ve sent goods on consignment to a third party, you can record the sales as follows:

1. Create a Consignment Ledger:

Go to Gateway of Tally > Masters > Ledgers.
Create a ledger for the consignee.

2. Record Sales:

Go to Gateway of Tally > Vouchers > Press F8 (Sales).
Select the consignee’s ledger account.
Enter the product details, quantity, and rate.
Save the sales invoice.

Method 2: Commission-Based Sales in TallyPrime

If the third party is selling your goods on a commission basis, you can record the sale as follows:

1. Record the Sale:

Create a sales invoice for the sale made by the third party.
Enter the customer details, product information, and quantity.
Save the sales invoice.

2. Record Commission Payment to the Third Party:

Create a journal entry to record the commission payment to the third party.
Debit the “Commission Expense” account and credit the third party’s account.

2. Example of Third Party Sales in TallyPrime:

Let’s say you’ve sent 10 units of a product to a consignee to sell.

The consignee sells 8 units at Rs. 100 per unit.

1. Record Consignment Sale:

Create a sales invoice for the consignee.
Enter the consignee’s ledger account.
Add the product with a quantity of 8 and a rate of Rs. 100.
Save the invoice.

2. Record Commission Payment (if applicable):

Create a journal entry.
Debit “Commission Expense” and credit the consignee’s account for the commission amount.

3. Key Points:

Inventory Adjustment: Adjust your inventory records to reflect the goods sold by the third party.
Revenue Recognition: Recognize revenue when the goods are sold by the third party and payment is received.
Commission Payments: If applicable, record the commission payments to the third party.
Tax Implications: Consider any tax implications, such as GST or VAT, that may apply to these transactions.

By following these steps and considering the specific circumstances of your third-party sales, you can accurately record these transactions in TallyPrime and maintain accurate financial records.