What is Sales Voucher in Tally, Meaning, Uses, Objectives, Advantages, Features, and How Does It Work

What is Sales Voucher in Tally?

A Sales Voucher in Tally is a pre-formatted entry screen used to record every sale transaction made by a business. In simple terms, it is the tool inside Tally Accounting Software where you enter details of goods or services you have sold to customers. Each voucher captures essential information such as the date of sale, the customer’s name, items sold, quantities, rates, taxes, and payment details. By using Sales Vouchers, businesses can maintain an accurate sales ledger, track revenue generation, and produce reliable financial reports. In the context of India, Tally’s Sales Voucher supports compliance with GST (Goods and Services Tax) laws by allowing you to specify tax ledgers and calculate tax amounts automatically.

Tally offers two main types of Sales Vouchers: Standard Sales Voucher for regular sales transactions and Sales Order or Delivery Note for order processing and goods dispatch. Regardless of the type, the purpose remains the same to ensure that each sale is recorded in a systematic, auditable manner. The Sales Voucher is also linked to other modules such as Inventory, Receivables, and Taxation, making it a central component of Tally’s integrated accounting workflow.

How Does Sales Voucher in Tally Work? The Process

Recording a sale in Tally involves a step-by-step process that begins when goods or services are delivered and ends when the accounting entries are posted. Here is a simplified walk-through of how it works:

Open the Voucher Screen:

• From the Gateway of Tally, navigate to Accounting Vouchers.
• Select F8: Sales (or press Alt+F8) to open the Sales Voucher screen.

Enter Basic Details:

• Date: By default, the system shows today’s date, but you can change it for back-dated entries.
• Voucher Number: Tally auto-generates this based on your voucher numbering configuration, ensuring each sale has a unique ID.

Select the Customer Ledger:

• Choose the Party A/C Name (customer ledger) from the list. If the customer is new, create a ledger on the fly by pressing Alt+C.

Pick the Stock Item:

• Under Item Details, select the stock item(s) you are selling.
• Enter the Quantity, Rate, and Amount. Tally will calculate the totals.

Specify Tax Ledgers:

• In the same screen, assign the appropriate GST ledgers such as CGST, SGST, or IGST. Tally automatically splits the tax amount based on the customer’s place of supply and your business location.

Enter Additional Charges or Discounts:

• If you wish to offer trade discounts or include freight, packing, or insurance charges, you can select or create those ledgers here.

Fill Narration:

• Narration is a brief description of the sale. It helps in future auditing or reporting.

Accept and Save:

• Press Ctrl+A to accept the voucher. Tally then posts the entries to the Sales and Stock Ledgers, updating your books immediately.

Once saved, the Sales Voucher becomes part of your accounting records. Tally updates the Sales Account, Debtors Ledger, Stock Summary, and GST Reports in real time. You can later view these vouchers in Display → Day Book or use them to generate invoices and statutory returns.

Objectives of Sales Voucher in Tally

The Sales Voucher in Tally serves several key objectives aimed at streamlining sales accounting and inventory management:

• Accurate Recording of Sales: Ensure each transaction is captured with full details customer, items, rates, and taxes to maintain precise revenue data.
• Integration with Inventory: Automate the reduction of stock levels and track inventory movement: every sale immediately reflects in the Stock Summary.
• Tax Compliance and Reporting: Simplify GST calculation and reporting. Sales Vouchers directly feed into GSTR-1 and other statutory returns, reducing manual effort and errors.
• Real-time Financial Insights: Provide up-to-date information on accounts receivable and sales performance, enabling better cash flow management.
• Audit Trail and Transparency: Maintain complete audit trails with unique voucher numbers, date-wise records, and detailed narrations, aiding internal and statutory audits.
• Flexibility and Customization: Support various types of sales transactions standard, cash, credit, POS, or export allowing businesses of all sizes to adapt Tally to their specific needs.

Importance of Sales Voucher in Tally

Sales Vouchers hold a pivotal role in Tally because they act as the primary mechanism for recording how a company generates revenue. Their importance can be understood from multiple perspectives:

• Financial Accuracy: Inaccurate or missing sales data can lead to flawed financial statements. Sales Vouchers ensure that every transaction is properly documented and reflected in profit-and-loss accounts, giving stakeholders confidence in the numbers.
• Inventory Control: For trading and manufacturing businesses, inventory is often one of the largest assets on the balance sheet. Linking sales to inventory ensures that stock levels are correctly maintained, preventing stock outs or over-stocking.
• GST Compliance: India’s GST regime requires timely and accurate reporting of outward supplies. Sales Vouchers in Tally streamline this by automatically calculating and bifurcating tax amounts and compiling them into GSTR-1 and other returns.
• Customer Relationship Management: Detailed sales records help businesses track order histories, outstanding balances, and payment patterns. This information is vital for effective credit control and customer service.
• Decision Making: Accurate sales data aggregated over time reveals trends best-selling products, seasonal fluctuations, or top-performing regions. Managers can use this data to adjust pricing, promotions, or inventory strategies.
• Audit and Compliance: Having a structured, tamper-proof record of sales is essential for audits. Sales Vouchers provide the documentary evidence needed to satisfy auditors and tax authorities.

Advantages of Sales Voucher in Tally

Using Sales Vouchers in Tally offers multiple advantages that go beyond simple record-keeping. Here are the key benefits:

• Automated Tax Calculations: You no longer need to manually split GST rates; Tally automatically computes CGST, SGST, or IGST based on predefined configurations.
• Time Savings: Default entries for party ledgers, stock items, and tax ledgers reduce data entry time. You can also copy and modify previous vouchers to save effort.
• Error Reduction: Validation rules in Tally such as mandatory fields and balance checks minimize the risk of posting incomplete or incorrect vouchers.
• Seamless Integration: Sales Vouchers connect to ledgers, stock summaries, and statutory reports. This eliminates the need for manual reconciliations.
• Multi-Currency Support: If your business deals in foreign currency, Tally’s Sales Vouchers handle currency conversions and maintain real-time exchange rates.
• Customizable Formats: Tailor voucher layouts, invoice formats, and report designs to match your business style and statutory requirements.
• Real-Time Reporting: Immediately after posting a sale, reports like Sales Register, Outstanding Receivables, and GST Ledgers are updated, enabling instant review.
• Security and Control: User roles and permissions in Tally can restrict access to voucher creation or alteration, ensuring that only authorized personnel can make changes.

Examples of Sales Voucher in Tally

To make the concept concrete, let us look at two simple examples of Sales Vouchers typically recorded in Tally:

Example 1: Standard Credit Sale

Scenario: A trader sells 10 boxes of LED bulbs at ₹150 per box to XYZ Enterprises on credit. GST at 18% applies.

Voucher Entry:

• Date: 05-06-2025
• Party A/C Name: XYZ Enterprises
• Stock Item: LED Bulbs (10 units @ ₹150 = ₹1,500)
• CGST Ledger: 9% on ₹1,500 = ₹135
• SGST Ledger: 9% on ₹1,500 = ₹135
• Total Amount: ₹1,770
• Narration: Credit sale of 10 boxes of LED bulbs to XYZ Enterprises.

Once saved, Tally posts ₹1,500 to the Sales Account, ₹135 to CGST, ₹135 to SGST, and ₹1,770 to Debtor’s Ledger (XYZ Enterprises).

Example 2: Cash Sale with Discount

Scenario: A retailer sells 5 raincoats at ₹800 each for cash and offers a 5% trade discount. GST at 12% applies.

Voucher Entry:

• Date: 10-06-2025
• Party A/C Name: Cash
• Stock Item: Raincoats (5 units @ ₹800 = ₹4,000)
• Trade Discount Ledger: 5% of ₹4,000 = ₹200 (as a negative amount)
• Taxable Value: ₹3,800
• CGST Ledger: 6% on ₹3,800 = ₹228
• SGST Ledger: 6% on ₹3,800 = ₹228
• Total Amount: ₹4,256
• Narration: Cash sale of raincoats with 5% trade discount.

This voucher adjusts the Sales account for ₹3,800, CGST and SGST for ₹228 each, and records ₹4,256 in the Cash account.

Components of Sales Voucher in Tally

A Sales Voucher in Tally comprises several key components that ensure comprehensive capturing of sales data:

• Voucher Date & Number: Indicates when the sale occurred and uniquely identifies the voucher.
• Party A/C Name (Customer Ledger): The ledger representing the buyer. Can be a party on credit or “Cash”/”Bank” for immediate payments.
• Sales Ledger: The primary ledger to which sales value is posted (e.g., “Sales Account” or a specific product category sales ledger).
• Stock Item Details: Each line item includes Name, Quantity, Unit of Measure (UoM), Rate, and Amount.
• Statutory Ledgers: GST ledgers such as CGST, SGST, or IGST. These ledgers calculate tax automatically based on applicable rates.
• Additional Charges or Discounts: Ledgers for freight, packing, insurance, or trade discounts. These affect the final value of the sale.
• Narration: A free-text field to describe the nature of the sale, making it easier to understand the context later.
• Cost Centres / Cost Categories (Optional): If you use cost accounting, you can allocate each sale to specific cost centres or categories for detailed expense tracking.
• Currency Details (for multi-currency transactions): Rate of exchange, currency ledger, and converted amounts.

Features of Sales Voucher in Tally

Tally’s Sales Voucher screen offers a range of features designed to improve usability and accuracy:

• Auto-Complete Fields: Quickly select ledgers, stock items, and tax rates from drop-down lists.
• Dynamic Calculation: Tally recalculates totals and taxes instantly as you enter or modify values.
• Reverse Charge Mechanism Support: For transactions where the recipient must pay GST, you can toggle reverse charge and assign the appropriate ledger.
• Pre and Post-Dated Vouchers: Record sales for future or past dates, useful for advance orders or back-dating entries.
• Voucher Level Authorization: Set up approval workflows so that certain vouchers require supervisory sign-off before posting.
• Drill-Down Reports: From the voucher itself, you can drill down into linked ledgers, inventory reports, and audit trails.
• Copy Voucher: Duplicate an existing voucher with minor changes, saving time on repetitive entries.
• VAT & CST Compatibility: In versions of Tally prior to GST rollout, Sales Vouchers supported VAT and CST calculations for interstate trade.
• Print Preview & Configuration: Preview the invoice layout directly from the voucher screen and adjust settings such as letterhead, logo, and fields displayed.
• Integration with Banking: For cash or bank sales, Tally can generate cheques or receipts instantly and record bank deposits automatically.

What is Sales Voucher in Tally Used For?

Sales Vouchers in Tally serve multiple practical purposes for a business:

• Invoice Generation: Create GST-compliant invoices directly from the voucher, featuring all statutory details and QR codes if required.
• Debtor Management: Track outstanding invoices and ageing of receivables to manage credit risk and follow-ups.
• Stock Monitoring: Keep an eye on stock levels in real time, ensuring timely restocking and avoiding stockouts.
• Tax Return Preparation: Extract sales data grouped by tax rates to fill out GSTR-1 and other outward supply returns.
• Financial Analysis: Analyze sales performance by item, customer, region, or period to inform pricing and marketing strategies.
• Audit Trail: Provide auditors with clear, date-wise records of every sale, complete with narrations and voucher numbers.
• Cash Flow Management: Understand cash inflows from sales, helping to forecast cash requirements and plan investments or payments.

How to Use Sales Voucher in Tally?

Follow these detailed steps to make the most of Sales Vouchers in Tally:

Configure Company and Tax Settings:

• Before recording vouchers, ensure your company details (GSTIN, state, address) are correct under Accounts Info → Company Info.
• Set up GST details under Statutory & Taxation so that tax rates and ledgers are ready for use.

Define Masters:

• Create Stock Groups, Stock Items, and Ledgers (Sales, Customer, Tax) in Accounts Info and Inventory Info.
• Assign GST rates to each stock item for automatic tax calculation.

Open Sales Voucher Screen:

• Go to Gateway of Tally → Accounting Vouchers.
• Press F8 (Sales) or click on Sales Voucher.

Enter Voucher Date:

• By default, Tally uses the current date; press D or directly edit the date field to change.

Select Voucher Type:

• Choose between Sale, Sale (POS), or Sales Order based on your transaction.

Fill in Customer Ledger:

• Under Party A/C Name, select an existing customer or press Alt+C to create a new one on the fly.

Add Item Details:

• In the Particulars section, choose the Sales Ledger first (e.g., “Sales-Local”).
• Move to Item Allocation area and enter each stock item with its Quantity and Rate.

Apply Taxes and Duties:

• Tally auto-displays applicable tax ledgers. Confirm or adjust CGST/SGST/IGST splits.

Incorporate Discounts or Charges:

• If offering trade discounts, record them in the Additional Ledgers section.
• For freight or insurance, select the relevant ledgers and enter amounts.

Assign Cost Centres (Optional):

• If you use cost tracking, press F12: Configure and enable Cost Centre, then allocate.

Enter Narration:

• Type a concise but descriptive note about the sale (e.g., “Sale of office chairs to ABC Ltd.”).

Save the Voucher:

• Press Ctrl+A to save. Tally will validate entries; correct any errors prompted on screen.

Review and Print:

• After saving, you can press Alt+P for a print preview of the invoice.
• Make any layout adjustments under Print & E-Mail Configuration.

Reporting:

• View Display → Day Book to see all vouchers recorded on a given date.
• Go to Display → Account Books → Sales Register for period-wise sales analysis.

Definition of Sales Voucher in Tally

A Sales Voucher in Tally is defined as a specialized accounting document used within the Tally ERP software to record details of every sale transaction. This document captures the complete information about the sale party details, item specifics, quantities, rates, taxes, discounts, and payment status and posts the related accounting and inventory entries in real time. In technical terms, it is a voucher type that debits the customer or cash/bank ledger and credits the sales ledger, along with corresponding debits to tax ledgers and credits to stock ledgers as per the transaction. This definition underscores its role as both an invoice generator and an accounting entry mechanism.

Meaning of Sales Voucher in Tally

The term “Sales Voucher” in Tally carries the simple meaning of a “sales invoice” within an integrated accounting system. Unlike a paper invoice, however, it is an interactive form that automatically feeds data into multiple accounting and inventory modules. The “voucher” aspect emphasizes its function as a recorded, numbered, and dated entry in the ledger, while “sales” specifies that it pertains to outward supply of goods or services. Together, Sales Voucher signifies a digital record that combines invoice creation, tax compliance, inventory adjustment, and accounting posting all in one place.

Summary

• Sales Voucher in Tally is the digital form for recording all sales transactions with detailed fields for date, party, items, rates, and taxes.
• It integrates accounting and inventory, updating ledgers and stock levels in real time.
• Key objectives include accurate sales recording, GST compliance, audit trails, and financial transparency.
• Sales Vouchers are important for inventory control, tax return preparation, cash flow management, and customer credit monitoring.
• Major advantages are automated tax calculations, time savings, error reduction, and seamless integration with other Tally modules.
• Examples include standard credit sales and cash sales with discounts, each illustrating how Tally handles tax and ledger postings.
• Components cover voucher date/number, party ledger, sales and tax ledgers, stock item details, and narrations.
• Features include auto-complete fields, dynamic calculations, reverse charge support, copy voucher options, and print previews.
• Sales Vouchers are used for invoice generation, debtor management, GST return preparation, and financial reporting.
• To use a Sales Voucher, configure company and tax settings, define masters, open the Sales Voucher screen, enter transaction details, apply taxes, save, and review.
• Defined technically, a Sales Voucher debits the customer ledger and credits the sales ledger (plus tax and stock entries).
• The term means a numbered, dated digital invoice within Tally that automates accounting and inventory updates.