Order Processing in Tally.ERP 9
Order Processing is a process followed by businesses for smoother transactions, timely delivery / services and intime receipt of payments. Before getting into the sales/purchase, both the parties agree upon terms and conditions for pricing and delivery and payments/receipts, which helps in resolving after sales issues amicably or legally. Tally.ERP 9 offers two different order processing categories Purchase/Sales Order Processing and Job Order Processing.
Purchase / Sales Order Processing
Purchase Order Processing before making actual purchase an purchase order is placed with suppliers and on the other hand in Sales Order Processing, sales order is given to sundry debtors before selling the goods. This is normally a norm followed by the companies to keep track of the Order details for Sales and Purchases as it helps in planning the production process accordingly.
You can implement Order Processing in Tally.ERP 9, Since no sales/purchase is involved so does not affect Accounts but only limited to Inventory only. It helps in tracking the order position for a Stock Item and can track the arrival of goods ordered. you can also know whether the ordered Stock Item are delivered on time etc.
Job Order Processing
Job Order Processing is mainly involved in manufacturing process. In Job Order Processing goods are manufactured as per the demand of the client by utilizing the material supplied by the client or purchase is made on behalf of the client and charged for the services provided as Job Work or Sub Contract.
Tally.ERP 9 has the capabilities to process the job work taken from a client as well as job work given to job workers. This feature allows the principal company to track the materials dispatched to job workers and materials received against the job given, and vice versa.
How to Enable Order Processing
To enable purchase/ sales order processing in Tally.ERP 9, you need to activate the Company features by pressing F11 key : Features then press ( F2: Inventory Features ).
Look for Order Processing section:
- Change the Enable purchase order processing to Yes
- Also Change Enable Sales Order Processing to Yes
Purchase Order Processing
In Purchase Order all related the information to purchase is passed to the suppliers namely the items, quantities, date of receipt etc with a Purchase Order Number assigned to it. The same is tracked , when these goods are received later. This Purchase Order number can be tracked for the Order Details either in the purchase Invoice or in the receipt note.
All the pending orders can be seen under Outstanding Purchase Order reports in Tally.ERP 9. The same can also be seen under Stock Summary.
Recording a Purchase Order
Purchase order is an order given by a business entity to a supplier for the delivery of certain goods at a given price and time. To create a purchase order, first you need to enable Purchase order processing as discussed above.
Creating a Purchase Order
- Go to Gateway of Tally > Select Order vouchers under Transactions > Press F4 : Purchase Order to view the Order Voucher Creation screen.
- Select the Party’s A/c Name or ALT+C to create new.
- Enter the Order No .
- Select the Purchase Account
- Select the Name of Item from the List of Stock Items
- Enter the Quantity and Rate of the item, as per actual.
- The select CGST and SGST to get total invoice amount.
- Press Control+A to Save the order Voucher.
How to record Sales Order
Tally.ERP9 allows to record sales orders, which can be later linked to Sales Invoices or Delivery Notes. Every sales order is assigned a unique order number which contains the details of items, quantities, rate, date of delivery also the total invoice amount. Order number is helpful in tracking outstanding orders.
- To open the sales order voucher screen.
go to Gateway of Tally > under Transactions select order vouchers > press Alt + F5 (Sales Order).
- Specify the buyer details.
Party A/c Name : Select the party name.
Party Details : Enter the Despatch , Order , and Buyer details as per your invoice requirements.
- Enter the value of sales Order no. for the voucher.
- Select the requisite Sales ledger to allocate the respective stock items.
- Select the stock item details. Enter the Due on date and Quantity . The Rate will be auto-filled, if available for the stock item. However, you may choose to enter the Rate . The Amount appears automatically.
After entering the due dates for all the lots, press Enter on the Due on field to return to the Voucher Creation screen.
- Provide Narration , if needed, and accept the screen.
- To print the sales order, press Alt + P (Print) and press Enter .
The following is a sample preview screen of the sales order.
The sales order details will be printed in the invoice.
Recording Sales Against Sales Order
In a regular business, the process flow starts from raising sales order first and then recording a delivery challan then sales invoice. So Tally.ERP 9, allows the same to be followed as per order. But you can skip delivery challan to directly process Sales Invoice after sales order.
To record Sales against sales order follow the steps as under:
- Go to Gateway of Tally > Press F8 Key to select Sales Voucher/Invoice
- Select Party name and press Enter key. On the Party Details Screen Select the order number and record the invoice by simply accepting the values as it is .
The details from the sales order will automatically listed in the sales voucher.
Save the sales invoice. As always, you can press Ctrl+A to save.
Record Delivery Note Against Sales Order
The Transaction flow for Sales order goes like – raise a sales order first, then record a delivery note against it , and then a sales invoice against the delivery note.
Here is an process of recording a delivery note against a sales order.
- To do this Enable the delivery note feature first.
- On Gateway of Tally > Press F11 (Features) > select F2 (Inventory) > in the other features section set Use tracking numbers (enables delivery and receipt notes) to Yes .
- To Enable supplementary details screen for delivery note.
- On the Gateway of Tally > select Inventory Vouchers > Press Alt+ F8 (Delivery Note).
- Press F12 (Configure) > make the option Enable Supplementary Details is set to Yes .
- Select the party ledger, sales order details.
- In the Party Details screen, select the order number.
- The details from the sales order will be displayed in the delivery note.
- Enter Dispatch Doc no. and Moto Vehicle No.
- Select Sales Ledger and make changes, if any.
- Save the delivery note. As always, you can press Ctrl+A to save.
I have tried covered Sales/Purchase Order Processing in Tally.ERP 9 systematically. If you have any query Pl feel free to comment, I would be more than happy to resolve your querries.