1. Understanding the Scenario of Increase in Purchase Value in TallyPrime
An increase in purchase value can occur due to various reasons, such as:
- Price Increase: The supplier increases the price of a product.
- Additional Costs: Additional costs like shipping, customs duties, or taxes may arise.
- Errors in the Original Purchase: Mistakes in the original purchase entry may need to be corrected.
2. Methods to Account for the Increase in Purchase Value in TallyPrime:
Method 1: Creating a Debit Note
1. Create a Debit Note:
- Go to Gateway of Tally > Vouchers > Press F10 (Other Vouchers).
- Select Debit Note.
2. Enter Party Details:
Enter the supplier’s name.
3. Select Bill-wise Details:
Select the original purchase invoice for which the value is increasing.
4. Enter the Increased Amount:
- Enter the additional amount to be charged by the supplier.
- Specify the reason for the increase, such as “price increase” or “additional charges”.
5. Save the Debit Note:
Press Ctrl+A to save the debit note.
Method 2: Creating a Journal Entry
1. Create a Journal Entry:
Go to Gateway of Tally > Vouchers > Press F11 (Journal).
2. Enter Journal Entries:
- Debit: Purchase Account (to increase the purchase value)
- Credit: Supplier’s Account (to increase the amount owed to the supplier)
- Credit: Any other relevant accounts (e.g., Input Tax, Additional Charges)
3. Save the Journal Entry:
- Press Ctrl+A to save the journal entry.
3. Example of Accounting for an Increase in Purchase Value in TallyPrime:
Let’s assume you purchased 10 units of a product for Rs. 100 per unit. Later, the supplier informs you that the price has increased to Rs. 110 per unit.
1. Using Debit Note:
- Create a debit note against the original purchase invoice.
- Enter the additional amount of Rs. 10 per unit (total Rs. 100) in the debit note.
- This will increase the purchase value and the amount owed to the supplier.
2. Using Journal Entry:
- Create a journal entry:
- Debit: Purchase Account – Rs. 100
- Credit: Supplier’s Account – Rs. 100
By using either of these methods, you can accurately account for the increase in purchase value in TallyPrime.
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