Sales of Goods Received from a Principal in TallyPrime: 5 Steps

1. Understanding the Sales of Goods Received from a Principal in TallyPrime

When you receive goods from a principal on a consignment basis, you essentially become a seller on their behalf.

When you sell these goods, you’re effectively making a sale for the principal.

2. Steps to Record the Sales of Goods Received from a Principal in TallyPrime:

1. Create a Sales Invoice:

Go to Gateway of Tally > Vouchers > Press F8 (Sales).

2. Enter Party Details:

Enter the customer’s details (the final buyer of the goods).

3. Add Items:

Add the items sold, including the quantity and rate.

4. Select the Correct Ledger:

In the “Ledger Name” field, select the ledger account created for the principal.

This will ensure that the revenue and inventory adjustments are correctly recorded.

5. Save the Invoice:

Press Ctrl+A to save the sales invoice.

3. Example of Sales of Goods Received from a Principal in TallyPrime:

Let’s say you’ve received 10 units of “Product A” from a principal named “Principal X”.

You sell 5 units to a customer at Rs. 100 per unit.

1. Create a Sales Invoice:

• Go to Gateway of Tally > Vouchers > Press F8 (Sales).
• Enter the customer’s details.
• Add “Product A” with a quantity of 5 and a rate of Rs. 100.
• In the “Ledger Name” field, select “Principal X”.

2. Save the Invoice:

Press Ctrl+A to save the sales invoice.

4. Key Points:

1. Inventory Adjustment:

If you’re tracking inventory, ensure that the inventory levels are adjusted to reflect the sale.

2. Commission or Fees:

If you’re earning a commission or fee for the sale, record it as income in a separate journal entry.

3. Payment to Principal:

When you receive payment from the customer, you’ll need to pay the principal for the cost of goods sold and any applicable commission.

4. Reconciliation:

Regularly reconcile your accounts with the principal to ensure accurate financial records.

By following these steps, you can accurately record sales of goods received from a principal in TallyPrime, ensuring that your financial records are up-to-date and accurate.