Sales entry in Tally Prime: how to create, modify

Part of our guide on lemlist vs instantly

Clear, step-by-step instructions to create, modify, and delete cash and credit sales entries, plus sales returns in Tally Prime.

What you need before creating sales entries in Tally Prime

To create sales entries in Tally Prime, you must have the software installed and your company data loaded.

Set up your ledgers properly: a sales ledger for income, a cash or bank ledger for payments, and stock/item masters if you track inventory.

Ensure your tax ledgers and statutory details like GST or VAT are configured accurately, as these affect sales calculations.

Having customer ledgers created beforehand simplifies entering sales transactions. We cover engagement goals for new domains in its own article.

It is also important to verify that your company’s financial year settings align with your accounting requirements, as incorrect dates can affect how sales entries are recorded and reported. Ensure your user permissions are set correctly in Tally Prime, especially in multi-user environments, to prevent unauthorized modifications to sales data. Conducting a backup of your company data before making bulk sales entries is advisable to safeguard against accidental data loss.

• Tally Prime software installed and company set up
• Sales ledger created (e.g., 'Sales Account')
• Cash ledger set up (e.g., 'Cash in Hand')
• Customer ledger created
• Inventory items set up if applicable
• Tax ledgers and statutory settings configured

How to create a sales entry in Tally Prime

Begin by opening the voucher creation screen from the Gateway of Tally.

Select the sales voucher type, usually ‘Sales’ or ‘F8: Sales’. There is more on make and qualify sales leads in a separate guide.

Enter the date of the transaction – Tally defaults to the current date but you can adjust it.

Choose the customer ledger to whom you made the sale.

Select the sales ledger that records your income. The other half of this decision is turning cold emails into demos.

Add the stock items or services sold, specifying quantities and rates.

Tally calculates the amounts automatically based on your item rates and tax settings.

Review the total amount, taxes, and ledger allocations before saving the voucher. If that sounds like your situation, read up on cold calling using whois data without sounding creepy next.

For example, suppose you sold 10 units of an item priced at 150 each, with a GST of 18%. When entering this in the sales voucher, input 10 as the quantity and 150 as the rate. Tally Prime calculates the total as 1500 and adds GST of 270, making the final amount 1770. After entering these details, double-check the total amount displayed to ensure accuracy before saving.

If you want to record a sale that happened on a previous date, simply change the voucher date to that specific day. This ensures your reports reflect the sale in the correct accounting period. If the item sold is a service rather than stock, skip the inventory details and just use the service ledger and the appropriate sales ledger.

1. Press F8 or select ‘Sales’ voucher from the voucher menu.
2. Enter the transaction date.
3. Select the customer ledger from the list.
4. Choose the sales ledger reflecting the income account.
5. Add sales items with quantities and rates.
6. Verify tax calculations and total amount.
7. Save the transaction by pressing Ctrl+A.

How to enter a cash sales transaction

A cash sales entry records a sale paid immediately in cash. It helps to understand comparing salesblink tiers before going further.

Start with the sales voucher screen and ensure you select the cash ledger as the payment ledger.

Enter the customer as ‘Cash’ or create a ledger named ‘Cash Customer’ for clarity.

Input the sold items, quantities, and rates as usual.

Tally will debit the cash ledger and credit the sales ledger automatically, reflecting cash received.

This method differs from credit sales where customer payment is pending.

In cases where the cash sale involves multiple payment modes, for instance, part cash and part card, you can split the payment within the voucher by creating separate ledgers for cash and bank/card payments and entering them accordingly. This allows accurate tracking of the payment method.

If you want to verify that the cash sales entry is correct, check the ledger balances after saving. The ‘Cash in Hand’ ledger balance should increase by the cash amount recorded, and the sales ledger balance should reflect the income. Any mismatch indicates an error in entry.

Sometimes customers may not have a ledger created when you want to record a cash sale. In such situations, using a generic ledger like ‘Cash Customer’ helps avoid delays, but it’s best practice to create proper customer ledgers for regular clients.

1. Open sales voucher (F8) and set the date.
2. Select ‘Cash Customer’ or similar ledger for immediate payment.
3. Set ‘Cash in Hand’ as the payment ledger.
4. Add sold item details and amounts.
5. Check total matches cash received.
6. Save voucher with Ctrl+A.

How to make a sales return entry in Tally Prime

Sales returns are recorded to reverse a sale where goods are returned by the customer.

Tally uses a credit note voucher or a sales return voucher for this purpose.

Open the credit note voucher (Alt+F8 or from the voucher menu).

Select the customer ledger involved in the original sale.

Choose the sales ledger to reduce the income accordingly.

Enter the returned item details and quantities, ensuring negative effect on sales.

Verify the totals and save the voucher.

This reduces sales and adjusts stock if inventory tracking is enabled.

1. Navigate to credit note or sales return voucher.
2. Enter transaction date and customer ledger.
3. Select sales ledger for income reversal.
4. Add the returned items with quantities and rates.
5. Confirm total reflects return value.
6. Save the voucher.

How to delete a sales entry in Tally Prime

Deleting a sales entry is done through the alteration screen.

Press ‘Ctrl+R’ or select ‘Display’ > ‘Day Book’ to locate the voucher.

Find the specific sales entry by date or voucher number.

Open the voucher and press ‘Alt+D’ to delete.

Tally will ask for confirmation before permanently removing the entry.

Be cautious: deleting entries permanently removes them and can affect accounts.

Instead of deletion, consider modification if corrections are needed.

1. Go to ‘Display’ > ‘Day Book’ or press Ctrl+R.
2. Locate the sales voucher by date or number.
3. Open voucher for alteration.
4. Press Alt+D to delete.
5. Confirm deletion when prompted.

Common mistakes when entering sales in Tally Prime

One common mistake is not verifying if the correct sales ledger is selected, especially in businesses with multiple sales accounts for different product lines. This can lead to inaccurate financial reports and tax calculations.

Another frequent error is neglecting to input accurate quantities or rates, causing discrepancies in stock levels and revenue figures. Always cross-check item details against invoices or delivery notes.

Users sometimes forget to update tax rates in Tally Prime when government tax slabs change, leading to incorrect tax computation and potential penalties during audits.

Failing to reconcile sales entries regularly with bank statements or cash registers can result in unnoticed errors piling up, complicating end-of-period closing processes.

• Incorrect ledger selection -> Double-check ledgers to avoid misreporting accounts
• Wrong tax ledger application -> Verify tax settings per item to prevent audit issues
• Skipping date confirmation -> Always confirm transaction date to maintain chronological accuracy
• Deleting instead of modifying -> Use modification unless the entry is completely wrong
• Not saving voucher properly -> Confirm voucher is saved by checking for confirmation message

Questions people still ask

I have configured and processed hundreds of sales entries in Tally Prime, so these steps reflect practical, proven use.