Choosing the right voucher type in Tally Prime

Most Tally mistakes are not typing errors. They happen when the right amounts go into the wrong voucher type, which puts entries in the wrong reports. Screenings test this heavily, so learn the logic behind each voucher rather than a list.

The six core vouchers

• Contra (F4): money moves between your own cash and bank accounts, such as a cash deposit or a transfer between two company bank accounts.
• Payment (F5): money goes out of cash or bank to someone else, such as rent, salary or paying a supplier.
• Receipt (F6): money comes into cash or bank from someone else, such as a customer payment.
• Journal (F7): adjustments that do not involve cash or bank, such as depreciation or correcting an entry posted to the wrong ledger.
• Sales (F8): selling goods or services, whether on cash or credit.
• Purchase (F9): buying goods for trading or production, whether on cash or credit.

Three questions to ask

1. Is cash or bank involved? If not, it is usually a Journal.
2. If it is, does the money move only between your own cash and bank accounts? Then it is a Contra.
3. Otherwise, is money going out or coming in? Going out is Payment, coming in is Receipt.

Sales and Purchase come first when you are recording the trade itself. The payment for that trade is a separate Receipt or Payment voucher later.

Common mistakes

• Recording a cash withdrawal from the bank as a Payment. It is a Contra.
• Recording a customer's payment as a Sales voucher. The sale was already recorded when the invoice was raised.
• Using Payment for depreciation. No money moved, so it is a Journal.

Check your work

After entering a day's vouchers, open the Day Book and read each line. Ask whether the voucher type matches what actually happened. If you correct an entry, check the Trial Balance again to confirm the ledgers moved as expected.