Automatic rounding is very useful feature in tally, automatic rounding off will helps to speed up sales and purchase transactions. apart from these two vouchers auto rounding can be used in voucher types like Credit note, Debit note, Delivery note, Receipt note etc.
How to treat round off in tally?
Rounding off is the adjusting of smaller fraction of amount (for eg: paisa) in to it’s nearest bigger value (for eg: Rupees).The rounding could be upward rounding, downward rounding or normal rounding.
Examples of rounding:
Rs 10.55 rounded off to Rs 11 (upward rounding)
Rs 10.55 rounded off to Rs 10 (downward rounding)
In accounting we can treat the rounding as income or expense. If round off ledger shows a debit balance it is an expense to the business, if it shows a credit balance it can be treated as income. Finally used in profit and loss account for profit calculation at the end of the financial year.
Hence create a round off ledger under indirect income or indirect expense is the normal procedure of treatment of round off in tally.
Let’s start auto rounding off
Automatic round off in sales voucher
At first we should create a ledger namely Round off under indirect expense or indirect income.
Creating voucher class
The second step is to create a voucher class; Voucher class has several uses in tally accounting. The usage of voucher class will discuss later on coming lessons.
To create voucher class
Gateway of Tally>>Accounts info>>Voucher Types>>Alter
Select sales voucher and press enter, in the voucher type alteration screen, continue to press enter until you reach “Name of class” type a voucher class name there. Let’s type name “Retail”
Press Enter you will get a new screen, called “class screen”, in the class screen press enter and under
Default accounting allocations for each item invoice
Ledger name: select any sales ledger here Sale
Under Additional accounting entries
Ledger Name: Round off (select the ledger we have created at the beginning)
Type of calculation: Select “As total amount rounding”. There are several rounding calculations available as seen in the below image, like As Flat rate, as additional exercise, as surcharge, as user defined value, based on quantity, on current subtotal, on item rate, on Total sales etc.
Rounding method: Three rounding method available, Normal, Downward and upward. Let’s select “Normal rounding”
Rounding Limit: You can set a limit for rounding, the maximum limit to which an amount is to be rounded. This may be up to Rs 1, Rs 10, or Rs50 Etc. The setting is depends on the decision of management. Set the limit Rs 1 here.
Remove if zero: Yes
The final screen will look like this
Press enter and save the screen, then save the voucher type alteration screen also.
Now enter a sales transaction
Crocodile T shirt XL sold for Rs 699.99
Gateway of Tally>>Accounting Vouchers>> Sales
Press F8 or click on sales button to have the sales voucher screen.
Tally will ask to select the voucher class to be used for the entry with voucher class list. See image below
Select newly created voucher class “Retail”.
You can see a round off ledger already exist in sales voucher, see the image.
Put the entry of the transaction Crocodile T shirt XL sold for Rs 699.99
Immediately after entering, Quantity, rate, the round off amount will have calculated automatically According to the method chose. see the below image
Hope the post will useful, for any clarification please use our comment section.