Purchase Order Example in Tally Prime

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DOCUMENT CONTROL BLOCK

• Document ID: SOP-TR-FIN-042
• Effective Date: October 24, 2023
• Version: 3.1.0
• Review Cadence: Semi-Annual
• Owner: Julian Vance, Chief Operations Architect

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1. Executive Summary & Scope

1.1 Purpose

This Standard Operating Procedure (SOP) defines the precise institutional protocol for generating, processing, and validating a Purchase Order (PO) within Tally Prime. Adherence to this protocol ensures absolute inventory tracking integrity, compliance with internal financial controls, seamless downstream integration into Goods Receipt Notes (GRN) and Accounts Payable (AP) matching, and immutable audit trails.

1.2 Scope

This procedure applies to all procurement specialists, inventory controllers, and finance personnel utilizing Tally Prime across all operational entities managed under Template Registry. It covers the complete lifecycle of a Purchase Order from initial voucher activation to final authorization and dispatch.

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2. Prerequisites & Required Tools

2.1 Technical & Software Requirements

• Tally Prime (Licensed Enterprise Edition, v3.0 or higher).
• Active user credentials with assigned security roles: Data Entry - Inventory or Procurement Manager.
• Configured Company Masters (Ledgers, Stock Items, Units of Measure, and Statutory Details).

2.2 Pre-requisite Data Inputs

• Verified Vendor Master (Legal entity name, GSTIN/Tax ID, billing/shipping addresses).
• Approved requisition or purchase authorization reference number.
• Active Stock Item Masters with correct HSN/SAC codes and standard costing parameters.

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3. Roles & Responsibilities (RACI Matrix)

• Responsible (R): Executes the data entry and generates the PO in Tally Prime.
• Accountable (A): Validates financial thresholds, tax applications, and signs off on final order dispatch.
• Consulted (C): Confirms stock item specifications, inventory thresholds, and delivery timelines.
• Informed (I): Receives the final authorized PO for fulfillment tracking.

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4. Step-by-Step Procedure

Phase 1: Feature Enablement & Ledger Verification

• Launch Tally Prime and select the target Company.
• Navigate to Gateway of Tally > Alter > Company (or press F11: Features).
• Verify that Enable Purchase Order Processing is set to Yes under the Inventory tab.
• Confirm that statutory features (GST/TDS) are active if applicable to the procurement category.

Phase 2: Voucher Type & Order Initiation

• Navigate to Gateway of Tally > Vouchers (Press V).
• Access the Purchase Order voucher creation screen by pressing Alt + F9 (or clicking Other Vouchers > Purchase Order).
• Ensure the correct Voucher Numbering configuration (Automatic/Manual) is active as per company policy.

Phase 3: Header & Party Details Entry

• Enter the current operational date in the Date field (Format: DD/MM/YYYY).
• Select the verified supplier from the List of Ledger Accounts in the Party's A/c Name field.
• Complete the Dispatch Details, Order Details, and Supplier's Details sub-screens (Supplier's Order No., Terms of Payment, Dispatch Through, Destination).
• Select the appropriate Purchase Ledger associated with the primary inventory/expense head.

Phase 4: Line Item Specification & Valuation

• Select the required inventory stock item from the List of Stock Items.
• Input the mandated Due On date for delivery tracking.
• Enter the exact order Quantity and verified Rate. Verify that the calculated amount dynamically populates.
• Apply applicable tax ledgers (e.g., Input CGST, SGST, IGST) immediately following the line-item array.
• Input comprehensive narration detailing the requisition reference, project code, or internal approval ticket number.

Phase 5: Verification & Authorization Save

• Perform a visual verification of line-item totals, tax calculations, and net payable value against the approved purchase requisition.
• Accept the voucher by pressing Ctrl + A or selecting Yes on the acceptance prompt.
• Print or export the generated Purchase Order in PDF format for direct transmission to the vendor (Alt + P -> Current -> Preview/Print).

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5. Quality Assurance & Verification

5.1 Key Metric Thresholds

• Data Accuracy: 100% match between the approved requisition quantity/rate and the Tally Prime PO entry.
• Tax Compliance: Zero tolerance for missing HSN/SAC codes or mismatched tax classifications.
• Order Cycle Time: PO generation must occur within 4 business hours of requisition approval.

5.2 Common Operational Pitfalls

• Pitfall 1: Selecting the standard Purchase Voucher (F9) instead of the Purchase Order Voucher (Alt + F9), which inadvertently hits accounting books prematurely without tracking order status.
• Pitfall 2: Omitting the Due On date, which corrupts the Inventory Aging and Pending Orders reports.
• Pitfall 3: Failing to link the Supplier's Order Number, rendering subsequent Goods Receipt Note (GRN) matching ambiguous.

5.3 Audit Verification Checklist

• Does the PO reference a validated requisition number in the narration?
• Are the delivery terms and shipping addresses explicitly stated?
• Is the stock item tied to the correct warehouse/godown location?

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6. Troubleshooting FAQ

Q1: The Purchase Order shortcut (Alt + F9) is disabled or missing from the voucher action bar. How do I restore it?

• Solution: This indicates the underlying feature flag is toggled off. Navigate to Gateway of Tally > F11: Features (Company Features). Locate the Inventory section and verify that Enable Purchase Order Processing is explicitly set to Yes. Save the configuration (Ctrl + A) and return to the voucher screen.

Q2: Tax ledgers are not calculating automatically when selected at the bottom of the PO. How is this resolved?

• Solution: Manual tax calculation failures typically stem from unconfigured Stock Item tax rates or mismatched state registrations between the company profile and the Party Ledger. Navigate to Gateway of Tally > Alter > Stock Item, check the statutory configurations (GST rate), and verify that the Party Ledger's state address matches the operational jurisdiction.

Q3: How do I track whether a generated Purchase Order has been partially or fully received?

• Solution: Access the real-time fulfillment status by navigating to Gateway of Tally > Display More Reports > Inventory Reports > Purchase Order Outstanding. This report delineates pending, cleared, and short-closed order quantities systematically.