Sales of Services | Accounting Invoice Mode in TallyPrime: 6 Steps

Accounting Invoice Mode in TallyPrime is primarily used for recording sales of services, as it doesn’t require detailed stock item allocation.

It’s a simplified method for businesses that primarily sell services.

1. Steps to Record Sales of Services using Accounting Invoice Mode in TallyPrime:

1. Access Sales Invoice:

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

2. Enter Party Details:

Input the customer’s account name and other relevant information.

3. Select Account:

Instead of selecting a stock item, directly select the income account representing the service you’re providing.

For example, you might select “Service Revenue” or a more specific account like “Consulting Fees”.

4. Enter Amount:

Specify the total amount of the service charge.

5. Add Taxes (If Applicable)

If applicable, include any taxes like GST, VAT, or excise duty.

6. Save the Invoice:

Press Ctrl+A to save the sales invoice.

2. Example of Sales of Services Using Accounting Invoice Mode in TallyPrime:

Let’s say you’re a consultant providing services to a client.

1. Create a Sales Invoice:
   • Go to Gateway of Tally > Vouchers > Press F8 (Sales).
2. Enter Party Details:
   • Input the client’s account name.
3. Select Account:
   • Choose the “Consulting Fees” account.
4. Enter Amount:
   • Specify the total consulting fee.
5. Add Taxes (If Applicable):
   • If GST is applicable, enter the GST rate and the total amount will be calculated automatically.
6. Save the Invoice: Press Ctrl+A to save the sales invoice.

3. Key Benefits of Accounting Invoice Mode in TallyPrime:

• Simplified Entry: Ideal for businesses that primarily sell services and don’t need detailed stock item tracking.
• Direct Revenue Recognition: Directly records service revenue without the need for intermediate steps.
• Tax Integration: Easily accommodates various tax structures.

4. Additional Considerations:

1. Service Contracts:

If you have service contracts with clients, you can reference them in the sales invoice for better tracking.

2. Time Tracking:

For services that involve time tracking (e.g., consulting), you can use TallyPrime’s time tracking features to calculate the service charges accurately.

By effectively using Accounting Invoice Mode, you can streamline your sales recording process for service-based businesses in TallyPrime.