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Bill-wise Entries in Tally Prime

📘 Bill-wise Entries in Tally Prime

Complete class notes, step-by-step procedures, examples, worked problems and practice questions.

1. What are Bill-wise Entries?

Definition: Bill-wise details in Tally Prime help an organisation track outstanding receivables and payables against individual invoices.

Whenever goods or services are sold or purchased on credit, the transaction can be linked to a particular bill or invoice. This makes it easier to identify which invoices are still unpaid and which invoices have already been settled.

  • Tracks individual customer invoices.
  • Tracks individual supplier bills.
  • Helps monitor due dates and overdue amounts.
  • Helps manage Accounts Receivable (Debtors).
  • Helps manage Accounts Payable (Creditors).
  • Makes partial payments and multiple-bill settlements easier to track.
Simple Example:
ABC Traders purchases goods worth ₹25,000 on credit. Instead of simply showing ₹25,000 as a total balance, bill-wise accounting records the specific invoice number, invoice date, due date and outstanding amount.

2. Enabling Bill-wise Details

Before recording bill-wise transactions, enable the feature in Tally Prime.

  1. Go to Gateway of Tally → F11 (Features).
  2. Open Accounting Features.
  3. Turn ON Maintain Bill-wise Details.
  4. While creating or altering customer/supplier ledger accounts, enable Maintain balances bill-by-bill.
  5. Enter the appropriate Default Credit Period, such as 30 days or 20 days.
💡 Important: The credit period determines the expected due date of a credit transaction. For example, a 30-day credit period on 01-Aug-2026 generally gives a due date around 31-Aug-2026.

3. Types of Bill References

Reference Type Meaning Example
New Ref Creates a new bill reference. Sales Invoice No. 101
Against Ref Adjusts a payment or receipt against an existing bill. ₹6,000 received against Invoice 101
Advance Records money received or paid before the related invoice is created. Customer pays ₹5,000 before an invoice is raised.
On Account Records a payment without identifying a particular bill at that time. ₹8,000 received but customer does not specify the invoice.
New Ref Use when creating a new invoice/bill.
Against Ref Use when settling an existing invoice.
Advance Use when money is received/paid before billing.
On Account Use when the specific bill is not known at the time of receipt/payment.

4. Recording Bill-wise Entries

4.1 Sales Voucher – Credit Sale

  1. Go to Gateway of Tally → Vouchers → Sales (F8).
  2. Select the customer/debtor ledger.
  3. Enter the stock item, quantity and rate.
  4. Enter applicable GST details, if applicable.
  5. In the Bill-wise Details screen, select New Ref.
  6. Enter the invoice number.
  7. Enter or confirm the due date.
  8. Save the voucher.
Example:
Invoice No. 101 is raised for ₹10,000 on credit. If the credit period is 30 days, Tally records the invoice as a new bill reference and calculates/tracks its due date.

4.2 Receipt Voucher – Payment Received

  1. Go to Gateway of Tally → Vouchers → Receipt (F6).
  2. Select the customer ledger.
  3. Select the Bank or Cash ledger receiving the money.
  4. In Bill-wise Details, select Against Ref.
  5. Select the relevant invoice number.
  6. Enter the amount received.
  7. Save the voucher.
💡 Partial Payment: If Invoice 101 is ₹10,000 and the customer pays only ₹6,000, select Against Ref and enter ₹6,000. The remaining ₹4,000 continues as outstanding against Invoice 101.

5. Worked Example – Partial Payment

Invoice: ₹10,000
Payment received: ₹6,000
Outstanding = Invoice Amount − Amount Received

Outstanding = ₹10,000 − ₹6,000

Outstanding = ₹4,000

Therefore, Tally continues to show ₹4,000 as outstanding against that particular bill.

Invoice Original Amount Received Balance
Invoice 101 ₹10,000 ₹6,000 ₹4,000

6. Example Scenario – Credit Sale and Receipt

Scenario:
Invoice No. 101 = ₹10,000
Customer receives 30 days credit.
After 15 days, customer pays ₹6,000.

The sales invoice is first recorded using New Ref. When the payment is received, the receipt is recorded using Against Ref.

Result:
Original Invoice = ₹10,000
Payment = ₹6,000
Outstanding = ₹4,000

7. Reports for Bill-wise Tracking

Bill-wise information can be reviewed through the Outstanding Receivables and Outstanding Payables reports.

Typical Navigation:
Gateway of Tally → Display More Reports → Statement of Accounts → Outstandings → Receivables / Payables

The report can help identify:

  • Bill or invoice number
  • Invoice date
  • Due date
  • Original bill amount
  • Amount received/paid
  • Pending amount
  • Overdue bills
Exam Tip: Remember the basic relationship: Outstanding = Original Bill − Amount Adjusted.

📝 Practical Questions with Solutions

Question 1: Credit Sale Entry

On 01-Aug-2026, you sold goods worth ₹25,000 to ABC Traders on credit. The credit period is 30 days.

Record the entry in the Sales Voucher using bill-wise details. What will be shown in the Outstanding Receivables Report?

Solution:
  1. Open Sales Voucher (F8).
  2. Select ABC Traders.
  3. Enter goods worth ₹25,000.
  4. Select New Ref in Bill-wise Details.
  5. Enter the invoice number and due date.
  6. Save the voucher.

Assuming no payment has been received, the outstanding amount is:

₹25,000 − ₹0 = ₹25,000
Report: ABC Traders will have ₹25,000 outstanding against the new invoice.

Question 2: Partial Payment Against Bill

Invoice No. 101 was raised on 05-Aug-2026 for ₹15,000. On 15-Aug-2026, the customer pays ₹10,000.

Record the Receipt Voucher using Against Ref. What is the outstanding balance?

Solution:
  1. Open Receipt Voucher (F6).
  2. Select the customer ledger.
  3. Select Bank/Cash as appropriate.
  4. Select Against Ref.
  5. Select Invoice No. 101.
  6. Enter ₹10,000 as the amount received.
  7. Save the voucher.
Outstanding = ₹15,000 − ₹10,000

= ₹5,000
Answer: ₹5,000 remains outstanding against Invoice No. 101.

Question 3: Advance Payment

On 10-Aug-2026, XYZ Ltd. pays ₹5,000 in advance before any invoice is raised.

On 20-Aug-2026, a Sales Invoice for ₹12,000 is raised. Adjust the advance against the invoice. What is the net outstanding?

Solution:

On 10-Aug-2026, record the receipt using the Advance reference.

When the invoice of ₹12,000 is raised, adjust the ₹5,000 advance against that invoice.

Invoice = ₹12,000
Less: Advance = ₹5,000

Net Outstanding = ₹7,000
Answer: ₹7,000 remains receivable from XYZ Ltd.

Question 4: On Account Entry

On 12-Aug-2026, you receive ₹8,000 from LMN Traders without specifying any invoice.

Record the receipt using On Account. Later, link the payment to Invoice No. 202 worth ₹10,000.

Solution:

At the time of receipt, select On Account because the customer has not specified a particular invoice.

Later, when Invoice No. 202 is identified, adjust the ₹8,000 payment against that invoice.

Invoice = ₹10,000
Less: Payment = ₹8,000

Outstanding = ₹2,000
Answer: Invoice No. 202 will show ₹2,000 as outstanding after adjustment.

Question 5: Multiple Bills Settlement

PQR Ltd. has the following invoices:

Invoice Date Amount
301 01-Aug-2026 ₹20,000
302 05-Aug-2026 ₹15,000

On 18-Aug-2026, PQR Ltd. pays ₹25,000. Adjust the receipt against both invoices.

Solution:

Total outstanding before payment:

₹20,000 + ₹15,000 = ₹35,000

Payment received = ₹25,000.

Assuming the payment is first adjusted against the older Invoice No. 301:

Invoice Original Adjusted Balance
301 ₹20,000 ₹20,000 ₹0
302 ₹15,000 ₹5,000 ₹10,000
Answer: Invoice No. 302 remains partly outstanding by ₹10,000.

Question 6: Payables Tracking

You purchased goods worth ₹30,000 from Supplier A on 02-Aug-2026. The credit period is 20 days.

On 12-Aug-2026, you pay the supplier ₹18,000.

Solution:
  1. Record the purchase using the Purchase Voucher.
  2. Select Supplier A.
  3. Enter the purchase amount of ₹30,000.
  4. Select New Ref for the supplier bill.
  5. Enter the appropriate due date.
  6. On 12-Aug-2026, open the Payment Voucher.
  7. Select Against Ref.
  8. Select Supplier A’s bill and enter ₹18,000.
Outstanding Payable = ₹30,000 − ₹18,000

= ₹12,000
Answer: Supplier A’s Outstanding Payables Report will show ₹12,000 pending against the bill.

🔑 Quick Revision

Situation Reference to Use Purpose
New credit invoice New Ref Create a new bill reference
Payment against existing invoice Against Ref Settle or partially settle a bill
Payment before invoice Advance Record advance payment
Payment received but invoice not identified On Account Keep payment unallocated temporarily
Outstanding Amount = Original Bill Amount − Amount Adjusted

✍️ Additional Practice Questions

  1. On 03-Sep-2026, sold goods worth ₹40,000 to RST Traders on 30 days credit. Create the Sales Voucher using New Ref. What will be the due date and outstanding amount if no payment is received?
  2. Invoice No. 405 is for ₹18,000. The customer pays ₹7,500. Record the receipt using Against Ref and calculate the balance.
  3. A customer pays ₹12,000 in advance. Later, an invoice of ₹20,000 is raised. Calculate the balance after adjusting the advance.
  4. A supplier’s bill is ₹50,000. You make two payments: ₹15,000 and ₹20,000. Calculate the remaining payable amount.
  5. A customer has three invoices of ₹10,000, ₹15,000 and ₹25,000. The customer pays ₹30,000. Decide how the payment can be allocated among the bills and calculate the remaining outstanding.
  6. You receive ₹9,000 from a customer without any invoice reference. Which bill-wise reference should be selected? Explain why.
  7. Explain the difference between Advance and On Account references with one example each.
  8. Explain why bill-wise details are useful for Accounts Receivable and Accounts Payable management.

🎯 Important Points for Exams & Practical Work

  • New Ref = New invoice/bill.
  • Against Ref = Payment/receipt against an existing bill.
  • Advance = Money received or paid before the related bill.
  • On Account = Payment recorded without specifying a bill.
  • Partial payment does not close the bill; only the remaining amount stays outstanding.
  • When multiple invoices are settled, the payment can be allocated against the relevant bill references.
  • Receivables represent amounts to be collected from customers.
  • Payables represent amounts to be paid to suppliers.
⚠️ Note: The exact menu names or screen layout can vary slightly depending on the Tally Prime version and configuration. Always verify the current voucher screen and statutory settings in the version being used for practical training.
📘 Bill-wise Entries in Tally Prime · Class Notes & Practical Workbook