Interest in Tally ERP 9

ORDER PROCESSING

Order processing refers to placing orders with suppliers for purchasing forms them or receiving orders from customers for selling.

Order processing is linked to inventory. Using this you can track the order position of a stock item: know that the goods order have arrived. Whether the orders have been delivered on time and the reason for the delay if any.

Order processing in Tally.ERP9 is the process of managing sales orders, purchase orders, and job orders in the software. Tally.ERP9 allows businesses to easily create, track, and manage orders from customers, vendors, and for internal production processes. Here are the basic steps involved in order processing in Tally.ERP9:

Create a new order: The first step in order processing is to create a new order in Tally.ERP9. This can be done by selecting the appropriate option from the main menu and filling in the required details.
Enter order details: Once the new order is created, the user must enter all relevant order details such as customer/vendor name, product/service details, quantity, price, and any other specific instructions.
Review and confirm the order: Before finalizing the order, it's important to review all the details to ensure accuracy. Once reviewed, the order can be confirmed and sent to the customer/vendor.
Track the order: After an order is confirmed, it's important to track its progress. Tally.ERP9 allows businesses to track order status, monitor inventory levels, and manage any changes or updates to the order.
Invoice the order: Once the order is complete, it's time to invoice the customer/vendor. Tally.ERP9 allows businesses to easily generate invoices, track payment status, and manage any outstanding balances.

Overall, Tally.ERP9 provides businesses with a comprehensive solution for order processing, allowing them to streamline their sales, purchase, and job order management processes, and improve their overall efficiency and productivity.

The order processing is classified under it:

Purchase order
Sales order

activate Purchase order & sales order

F11-> Inventory features

Purchase Order key -> Alt + F4

Select Purchase Order option: To create a new purchase order in Tally ERP9, the user needs to select the Purchase Order option from the main menu.
Enter Supplier Details: The next step is to enter the details of the supplier such as the name, address, and contact information. This information can be easily retrieved from the supplier ledger or entered manually.
Enter Purchase Order Details: Once the supplier details have been entered, the user can proceed to enter the purchase order details such as the product or service to be purchased, the quantity, price, and any other relevant information. It is also possible to track the delivery date and terms of payment.
Review and Confirm the Purchase Order: After entering all the details, it is important to review the purchase order to ensure accuracy. Once reviewed, the user can confirm and send the purchase order to the supplier.
Receive Goods and Update Stock: When the goods are received from the supplier, the user can update the stock in Tally ERP9 to reflect the new inventory. This can be done by selecting the appropriate option from the main menu and entering the details of the received goods.
Record Supplier Payment: Finally, the user needs to record the payment made to the supplier for the purchased goods or services. This can be done by selecting the appropriate option from the main menu and entering the details of the payment.

Overall, creating a purchase order in Tally ERP9 is a straightforward process that helps businesses manage their purchasing transactions more efficiently and accurately. By automating the purchase order process, businesses can reduce errors, improve inventory management, and streamline their accounting processes.

In Tally ERP9, a Purchase Order (PO) is a document issued by a business to a vendor or supplier that outlines the details of a purchase transaction. It is essentially a formal request for the delivery of goods or services at a specified time and price. Here are the steps involved in creating a purchase order in Tally ERP9:

Sales order key -> Alt + F5

In Tally ERP9, a Sales Order (SO) is a document issued by a business to a customer that confirms the details of a sales transaction. It includes information such as the quantity, price, and delivery date of the products or services being sold. Here are the steps involved in creating a sales order in Tally ERP9:

Select Sales Order option: To create a new sales order in Tally ERP9, the user needs to select the Sales Order option from the main menu.
Enter Customer Details: The next step is to enter the details of the customer such as the name, address, and contact information. This information can be easily retrieved from the customer ledger or entered manually.
Enter Sales Order Details: Once the customer details have been entered, the user can proceed to enter the sales order details such as the product or service to be sold, the quantity, price, and any other relevant information. It is also possible to track the delivery date and terms of payment.
Review and Confirm the Sales Order: After entering all the details, it is important to review the sales order to ensure accuracy. Once reviewed, the user can confirm and send the sales order to the customer.
Generate Sales Invoice: When the goods or services are delivered to the customer, the user can generate a sales invoice in Tally ERP9 to bill the customer for the sale. This can be done by selecting the appropriate option from the main menu and entering the details of the invoice.
Receive Customer Payment: Finally, the user needs to record the payment received from the customer for the sold goods or services. This can be done by selecting the appropriate option from the main menu and entering the details of the payment.

Overall, creating a sales order in Tally ERP9 is a simple process that helps businesses manage their sales transactions more efficiently and accurately. By automating the sales order process, businesses can reduce errors, improve inventory management, and streamline their accounting processes.

INTEREST CALCULATION

In Tally ERP9, interest calculation refers to the process of calculating interest on various types of transactions, such as loans, overdue payments, and deposits. The software provides a number of features to facilitate interest calculation and accounting. Here are the steps involved in interest calculation in Tally ERP9:

Set up Interest Calculation Parameters: Before starting the interest calculation process, the user needs to set up the appropriate parameters in Tally ERP9. This includes selecting the type of interest calculation method to be used, specifying the applicable interest rate, and setting up the relevant ledgers.
Record Transactions: Once the interest calculation parameters have been set up, the user can start recording the relevant transactions in Tally ERP9. For example, if a loan has been taken out, the user can record the loan transaction in the software and specify the interest rate and repayment terms.
Run Interest Calculation: After recording the relevant transactions, the user can run the interest calculation process in Tally ERP9. This can be done by selecting the appropriate option from the main menu and entering the relevant details such as the date range and the applicable interest rate.
Review Interest Calculation Report: After the interest calculation process is complete, Tally ERP9 generates an interest calculation report that provides a detailed breakdown of the interest calculations for the specified time period. The user can review this report to ensure accuracy and make any necessary adjustments.
Record Interest Transactions: Once the interest calculation has been reviewed and confirmed, the user needs to record the interest transactions in Tally ERP9. This can be done by creating appropriate journal entries to update the relevant ledgers.

Overall, interest calculation in Tally ERP9 is a powerful feature that allows businesses to automate their interest calculation and accounting processes. By streamlining these processes, businesses can improve their financial management and ensure accurate reporting.

Interest is a reasonable return on money invested and chargeable in the business world on loans and on delayed payments. Interest can be calculated on the basic of two methods:

1.Simple interest
2.Compound interest.

Simple interest:

Simple interest is a method of calculating interest on a loan or an overdue payment where interest is calculated only on the principal amount for a specified period. In Tally ERP9, simple interest can be calculated using the following steps:

Set up Simple Interest Parameters: The first step is to set up the parameters for simple interest calculation in Tally ERP9. This includes selecting the simple interest calculation method, specifying the applicable interest rate, and setting up the relevant ledgers.
Record the Transaction: Once the parameters have been set up, the user needs to record the transaction in Tally ERP9. For example, if a loan has been taken out, the user can record the loan transaction in the software and specify the interest rate and repayment terms.
Calculate Simple Interest: After the transaction has been recorded, Tally ERP9 can automatically calculate the simple interest based on the applicable interest rate and the specified period. The software generates a report that shows the principal amount, interest amount, and total amount due.
Record Interest Transaction: Once the interest calculation has been reviewed and confirmed, the user needs to record the interest transaction in Tally ERP9. This can be done by creating an appropriate journal entry to update the relevant ledger.

Overall, simple interest calculation in Tally ERP9 is a simple and effective method for calculating interest on loans or overdue payments. By automating this process, businesses can improve their financial management and ensure accurate reporting.

This is calculated on the principal amount at a certain specified rate for specified period.

For example, the principal amount is Rs.10000 and the rate of interest is 10%. The interest is to be calculated for 2 years.

10000 X 10/100 -> 1000 (1 year interest)
10000 X 10/100 -> 1000 (2 year interest)

Compound interest:

Compound interest is a method of calculating interest on a loan or an overdue payment where the interest is calculated on both the principal amount and the accumulated interest over a specified period. In Tally ERP9, compound interest can be calculated using the following steps:

Set up Compound Interest Parameters: The first step is to set up the parameters for compound interest calculation in Tally ERP9. This includes selecting the compound interest calculation method, specifying the applicable interest rate, and setting up the relevant ledgers.
Record the Transaction: Once the parameters have been set up, the user needs to record the transaction in Tally ERP9. For example, if a loan has been taken out, the user can record the loan transaction in the software and specify the interest rate and repayment terms.
Calculate Compound Interest: After the transaction has been recorded, Tally ERP9 can automatically calculate the compound interest based on the applicable interest rate and the specified period. The software generates a report that shows the principal amount, interest amount, and total amount due.
Record Interest Transaction: Once the interest calculation has been reviewed and confirmed, the user needs to record the interest transaction in Tally ERP9. This can be done by creating an appropriate journal entry to update the relevant ledger.

Overall, compound interest calculation in Tally ERP9 is a more complex method for calculating interest compared to simple interest. However, it is also a more accurate representation of the true cost of borrowing. By automating this process, businesses can improve their financial management and ensure accurate reporting.

Here the interest's amount gets added to the principal amount.

For example, the principal amount is Rs.10000 and the rate of interest is 10%. The interest is to be calculated for 2 years.

10000 X 10/100 -> 1000 (1 year interest)
11000 X 10/100 -> 1100 (2 year interest)

Activate interest calculation

MFG DATE & EXPIRY DATE

In Tally ERP9, Mfg Date (Manufacturing Date) and Expiry Date are two important parameters that are used to manage inventory and track product expiry dates. Here's a brief explanation of these parameters:

Manufacturing Date: The manufacturing date is the date on which a product was produced or manufactured. This information is important for managing inventory, as it allows businesses to track how long a product has been in stock and determine when it may expire.
To record the manufacturing date in Tally ERP9, the user can create a new stock item or alter an existing one, and enter the manufacturing date in the relevant field. This information is then stored in the inventory ledger for that item and can be used to track the product's age and expiry date.
Expiry Date: The expiry date is the date after which a product is no longer safe for use or consumption. This information is important for businesses that deal with perishable or consumable products, as it allows them to ensure that they are selling products that are safe and fresh.

Batch details are used to identify the movement of inventory in batches or lot. Although this is a requirement primarily of the pharmaceutical inductor, the same can be used by other industries that maintain or manufacture expiry date of items.

F11-> Inventory features

Fill Mfg & EXP Dates in stock

This is useful for businesses that deal in goods that have expiry dates like medicines, foods and other perishable goods. Batch-wise details are given for maintain batch information pertaining to stock items.

RE-ORDER LEVELS

In Tally ERP9, Re-order Levels is a feature that helps businesses to manage their inventory levels and ensure that they always have enough stock on hand to meet customer demand. Re-order Levels are set for each stock item, and they specify the minimum and maximum quantity of that item that should be kept in stock. When the quantity of a particular stock item falls below the re-order level, Tally ERP9 generates an alert, prompting the user to place a new order for that item.

Re-order Levels in Tally ERP9 can also be configured to include a Re-order Date. The Re-order Date is the date on which a new order for a stock item should be placed in order to ensure that it is delivered and restocked before the current inventory runs out. By including a Re-order Date, businesses can ensure that they always have enough inventory on hand to meet customer demand without overstocking or running out of stock.

To set up Re-order Levels and Re-order Dates in Tally ERP9, the user can create a new stock item or alter an existing one, and enter the relevant information in the appropriate fields. The software will then track the inventory levels for that item and generate alerts and reminders when the stock falls below the re-order level or when the re-order date is approaching.

Overall, Re-order Levels and Re-order Dates are important features in Tally ERP9 that can help businesses to manage their inventory levels more effectively and avoid stockouts and overstocking. By automating this process, businesses can save time and ensure that they always have the right amount of inventory on hand to meet customer demand.

Re-order level is the level on reaching which an order has to be placed for a stock items. The impotence of a re-order levels arises from the desire to have sufficient stocks to service customer order and at the same time not to have unnecessarily high stock. Therefore the point to be considered in deciding reorder level is:

1.Lead time for suppliers to deliver stock
2.Delivery time specified by the customer
3.The stock in hand to satisfy order’s in the meantime

Inventory info -> reorder levels -> stock in hand