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Practice Questions – Purchase & Sales Orders in Tally Prime

Purchase & Sales Orders in Tally Prime

Practice Questions, Step-by-Step Examples & Outstanding Reports

Sales Order Purchase Order Delivery Note Receipt Note Invoice

1. Introduction

Orders in Tally Prime help an organization record commitments to buy or sell goods before the actual invoice is prepared.

Transaction Purpose Typical Follow-Up
Sales Order Records an order received from a customer Delivery Note → Sales Invoice
Purchase Order Records an order placed with a supplier Receipt Note → Purchase Invoice
Delivery Note Records goods delivered to a customer Can be linked to Sales Order
Receipt Note Records goods received from a supplier Can be linked to Purchase Order
Sales Invoice Records the sale and amount receivable Completes the sales transaction
Purchase Invoice Records the purchase and amount payable Completes the purchase transaction
Important Concept: An order does not normally mean that the goods have already been delivered or received. The Outstanding Report helps track the quantity or value that is still pending against an order.

2. Order Processing Flow

Sales Order ↓ Delivery Note ↓ Sales Invoice
Purchase Order ↓ Receipt Note ↓ Purchase Invoice
Simple Example:
Customer orders 100 units → Seller delivers 60 units → 40 units remain pending → Seller delivers remaining 40 units → Sales Order becomes fully fulfilled.

3. Question 1 – Sales Order Entry

On 01-Aug-2026, ABC Traders places an order for:

Product Quantity Rate Order Value Delivery Due
Product A 50 units ₹200 ₹10,000 10-Aug-2026
Product B 30 units ₹150 ₹4,500 10-Aug-2026
Total ₹14,500

Task

  1. Create or select ABC Traders as the customer.
  2. Enter Product A – 50 units @ ₹200.
  3. Enter Product B – 30 units @ ₹150.
  4. Enter the delivery due date as 10-Aug-2026.
  5. Save the Sales Order.
Gateway of Tally → Vouchers → Sales Order

Expected Outstanding Report

Item Ordered Delivered Pending
Product A 50 0 50
Product B 30 0 30
Answer: The Sales Order Outstanding Report should show the complete ordered quantities as pending because no delivery has yet been recorded against the order.
Key Learning:
Ordered Quantity − Delivered Quantity = Outstanding Quantity

4. Question 2 – Partial Delivery Against Sales Order

From the Sales Order in Question 1, on 08-Aug-2026, the following goods are delivered:

Product Ordered Delivered Pending
Product A 50 30 20
Product B 30 20 10

Task

Record a Delivery Note against the Sales Order.

Gateway of Tally → Vouchers → Delivery Note
Product A: Ordered = 50 Delivered = 30 Pending = 50 − 30 = 20 units Product B: Ordered = 30 Delivered = 20 Pending = 30 − 20 = 10 units Total Pending Quantity = 20 + 10 = 30 units
Answer: The Outstanding Report will show 20 units of Product A and 10 units of Product B as pending.
Important: Partial delivery does not automatically mean the complete Sales Order is closed. The balance remains outstanding until it is delivered or otherwise adjusted/closed.

5. Question 3 – Purchase Order Entry

On 05-Aug-2026, a Purchase Order is placed with XYZ Suppliers.

Item Quantity Rate Total Value Expected Receipt
Raw Material X 100 units ₹50 ₹5,000 15-Aug-2026

Task

  1. Select XYZ Suppliers.
  2. Enter Raw Material X.
  3. Enter quantity as 100 units.
  4. Enter rate as ₹50.
  5. Enter the expected receipt date.
  6. Save the Purchase Order.
Gateway of Tally → Vouchers → Purchase Order

Expected Outstanding Report

Item Ordered Received Pending
Raw Material X 100 0 100 units
Answer: Since no Receipt Note has been entered, the complete 100 units remain outstanding.

6. Question 4 – Receipt Note Against Purchase Order

On 15-Aug-2026, only 70 units of Raw Material X are received.

Purchase Ordered = 100 units Received = 70 units Outstanding = 100 − 70 = 30 units

Expected Outstanding Report

Item Ordered Received Pending
Raw Material X 100 70 30 units
Gateway of Tally → Vouchers → Receipt Note
Answer: The Purchase Order Outstanding Report will show 30 units of Raw Material X as pending.

7. Question 5 – Converting Orders into Invoices

Convert the Sales Order from Question 1 into a Sales Invoice after full delivery. Similarly, convert the Purchase Order from Question 3 into a Purchase Invoice after full receipt.

Sales Cycle

Sales Order → Delivery Note → Sales Invoice

Purchase Cycle

Purchase Order → Receipt Note → Purchase Invoice

Expected Status After Full Completion

Order Original Quantity Completed Quantity Outstanding Status
Sales Order 80 units 80 units 0 Completed / No Pending Quantity
Purchase Order 100 units 100 units 0 Completed / No Pending Quantity
Important: The exact report wording and status presentation can depend on the Tally Prime release and report configuration. The important concept is that the outstanding quantity becomes zero after the complete order quantity has been fulfilled.

8. Question 6 – Multiple Orders Tracking

Customer LMN Ltd. places two Sales Orders:

Order No. Item Ordered Due Date Delivered Pending
201 Item A 40 12-Aug-2026 20 20
202 Item B 60 14-Aug-2026 30 30
Order 201: 40 ordered − 20 delivered = 20 units outstanding Order 202: 60 ordered − 30 delivered = 30 units outstanding Total Outstanding = 20 + 30 = 50 units
Answer: Both orders remain outstanding.
  • Order 201 → 20 units of Item A pending.
  • Order 202 → 30 units of Item B pending.
  • Total pending quantity → 50 units.

9. Understanding Outstanding Orders

Outstanding quantity represents the portion of an order that has not yet been fulfilled.

For Sales Orders: Outstanding Quantity = Ordered Quantity − Delivered Quantity For Purchase Orders: Outstanding Quantity = Ordered Quantity − Received Quantity
Situation Outstanding Quantity
No delivery/receipt Entire order quantity
Partial delivery/receipt Remaining balance
Full delivery/receipt Zero

10. Additional Practice Questions

Practice Question 7 – Partial Sales Order

Situation: Customer PQR Ltd. orders 200 units of Product X at ₹80 each. The customer receives 125 units.

Task: Calculate the outstanding quantity and outstanding order value.
Expected Answer:
Pending Quantity = 200 − 125 = 75 units
Pending Value = 75 × ₹80 = ₹6,000

Practice Question 8 – Multiple Products

Customer DEF Ltd. places an order for:
  • 100 units of Product A @ ₹250
  • 80 units of Product B @ ₹100
  • 50 units of Product C @ ₹300
Deliver:
  • 60 units of Product A
  • 50 units of Product B
  • 20 units of Product C
Task: Calculate the pending quantity and value for each product.

Practice Question 9 – Purchase Order Partial Receipt

Purchase 500 units of Raw Material Y @ ₹40 from Supplier ABC. Only 350 units are received.

Task: Calculate the outstanding quantity and outstanding value.
Expected Answer:
Pending Quantity = 500 − 350 = 150 units
Pending Value = 150 × ₹40 = ₹6,000

Practice Question 10 – Full Order Completion

A customer orders 75 units of Product Z. A Delivery Note is entered for all 75 units.

Task: What quantity should remain outstanding?
Expected Answer: Outstanding Quantity = 75 − 75 = 0 units.

Practice Question 11 – Two Sales Orders

Customer GHI Ltd. places:
  • Order 301: 100 units of Item P
  • Order 302: 150 units of Item Q
Delivery:
  • Order 301: 70 units
  • Order 302: 90 units
Task: Determine the outstanding quantity for each order and the total outstanding quantity.
Expected Answer:
Order 301 → 100 − 70 = 30 units
Order 302 → 150 − 90 = 60 units
Total → 30 + 60 = 90 units

Practice Question 12 – Due Date Tracking

On 01-Sep-2026, a customer orders 300 units with a delivery due date of 10-Sep-2026. Only 180 units are delivered by the due date.

Task: Determine the pending quantity and identify whether the order requires further delivery.
Expected Answer:
Pending = 300 − 180 = 120 units.
The order still has 120 units outstanding.

11. Practical Assignment

Company: ABC Trading Corporation

Complete the following exercise in Tally Prime.

  1. Create the required stock items.
  2. Create the customer ledger.
  3. Create the supplier ledger.
  4. Enter a Sales Order for multiple products.
  5. Enter a partial Delivery Note against the Sales Order.
  6. Display the Sales Order Outstanding Report.
  7. Enter the remaining Delivery Note.
  8. Generate the Sales Invoice.
  9. Enter a Purchase Order.
  10. Enter a partial Receipt Note.
  11. Display the Purchase Order Outstanding Report.
  12. Enter the remaining Receipt Note.
  13. Generate the Purchase Invoice.
  14. Verify that the outstanding order quantity becomes zero.
Student Observation: At every stage, compare the ordered quantity with the delivered/received quantity and record the balance shown by the Outstanding Report.

12. Viva Questions

1. What is a Sales Order?
2. What is a Purchase Order?
3. What is a Delivery Note?
4. What is a Receipt Note?
5. What is an Outstanding Report?
6. What happens to an order after partial delivery?
7. What happens when the entire order quantity is delivered?
8. What is the difference between a Sales Order and a Sales Invoice?
9. What is the difference between a Purchase Order and a Purchase Invoice?
10. Why are Delivery Notes linked to Sales Orders?
11. Why are Receipt Notes linked to Purchase Orders?
12. How is outstanding quantity calculated?
13. Can one Sales Order be fulfilled through multiple Delivery Notes?
14. Can one Purchase Order be fulfilled through multiple Receipt Notes?
15. Why is due-date tracking important?

13. Quick Revision Chart

Document Used For Next Step
Sales Order Customer’s order Delivery Note
Delivery Note Goods delivered Sales Invoice
Sales Invoice Sale is billed Receivable / Accounting
Purchase Order Order placed with supplier Receipt Note
Receipt Note Goods received Purchase Invoice
Purchase Invoice Purchase is billed Payable / Accounting
Golden Rule:

Sales Order Outstanding = Ordered − Delivered

Purchase Order Outstanding = Ordered − Received

14. Final Summary

Purchase and Sales Orders help businesses monitor commitments before the final invoice is generated. Tally Prime allows users to track the complete order lifecycle and identify pending quantities.

Order → Partial / Full Fulfilment → Outstanding Tracking → Invoice
Remember:
If 100 units are ordered and 60 units are delivered,
Outstanding = 100 − 60 = 40 units.

If the remaining 40 units are subsequently delivered,
Outstanding = 100 − 100 = 0 units.

Purchase & Sales Orders in Tally Prime – Practice Workbook