Enter Discount % & Amount on Item Rates in TallyPrime: 5 Steps

In TallyPrime, you can enter a discount percentage or amount on item rates by utilizing a discount ledger account.

This method is ideal for businesses that want to track total discount amounts separately in their accounts.

Here’s how you can achieve this:

Table of Contents

1. Steps to Enter Discount Percentage and Amount Using a Ledger Account in TallyPrime

1. Enable Discount Ledger Option

Navigate to Gateway of Tally → F11: Features → Accounting Features.
Ensure the option Allow Income/Expense Allocation in Invoices is set to Yes.

2. Create a Discount Ledger

Go to Gateway of Tally → Accounts Info → Ledgers → Create.
Name the ledger, e.g., Discount Allowed.
Under Group, select Indirect Expenses (or another relevant group based on your accounting needs).
Set the Type of Ledger as applicable, e.g., applicable for GST or VAT if needed.
Save the ledger.

3. Record a Sales Voucher with Discounts

Navigate to Gateway of Tally → Vouchers → Sales.
Select the Customer Ledger.
In the Inventory Allocation Section:
- Choose the stock item.
- Enter the Quantity and Rate.
- Do not apply a discount percentage directly to the item here.
After adding all items, press Enter to move to the ledger allocation section.
Add the Discount Ledger:
- In the Discount Ledger, enter the discount amount manually or calculate the discount percentage based on the total.
The discount will appear as a separate ledger entry in the invoice.

4. Apply Taxes (if applicable)

Add GST or other taxes, which will be calculated on the net value after discounts.

5. Save the Voucher

Verify the details, including the discount ledger and net amount, and save the voucher.

2. Example Scenario of Entering Discount % & Amount on Item Rates in TallyPrime

Scenario: A company sells 10 units of Product A (₹500 per unit) and 5 units of Product B (₹300 per unit). A discount of 10% is offered, recorded via a ledger.

1. Invoice Details:

Product A: ₹500 × 10 = ₹5,000
Product B: ₹300 × 5 = ₹1,500
Subtotal: ₹6,500.

2. Discount Entry:

Create a Discount Allowed ledger.
Apply a 10% discount (₹650) via the discount ledger.

3. Tax Calculation:

If GST is 18%, calculate tax on the net value after discount:
- Net Value: ₹6,500 – ₹650 = ₹5,850.
- GST: ₹5,850 × 18% = ₹1,053.

4. Final Invoice Value:

Net Value: ₹5,850
GST: ₹1,053
Total Invoice Value: ₹6,903.

3. Benefits of Using a Discount Ledger Account in TallyPrime

Tracking Discounts: Maintain a clear record of discounts offered across all transactions.
Accounting Control: Easily view discount expenses in profit and loss statements.
Accurate Taxation: Ensure discounts are applied before tax calculations, avoiding tax errors.

This method provides transparency in financial reporting while keeping your discount policy structured and organized.