27TALLYAdvanced

Bill-Wise Details and Outstanding Management

Tracking Sunrise Retail's outstanding receivables and payables with aging analysis

Module 27 of 31 — Tally Prime. Track Sunrise Retail's individual invoices, record partial payments, and manage collections using aging analysis. Duration: 40 min.

Learning Objectives

  • Enable and use bill-wise accounting for debtors and creditors
  • Track individual invoices in outstanding reports
  • Record partial and full payments against specific bills
  • View and interpret the age-wise outstanding report for Sunrise Retail

Prerequisites: Payment and Receipt Vouchers — tally-07


What Is Bill-Wise Accounting?

When "Maintain Balances Bill-by-Bill" is enabled for a party ledger, Tally tracks each invoice separately. Instead of:

Digital Hub Retail: ₹3,89,400 (total balance)

you see:

Digital Hub Retail:
  SR-2025-0042 — ₹5,66,400 — due May 10 — 5 days remaining
  CN-2025-0005 — (₹37,760) — credit note applied
  SR-2025-0063 — ₹1,61,000 — due May 25
  Net outstanding: ₹6,89,640

This visibility is essential for collections, payment planning, and aging analysis.


Enabling Bill-Wise in Ledger Master

Gateway → Masters → Ledgers → Alter → [Party Name]
→ Maintain balances bill-by-bill: Yes
→ Default credit period: 15 days  (or as agreed)
→ Ctrl+A

Apply to: all Sundry Debtors and Sundry Creditors.


Bill Reference Types in Voucher Entry

When entering any transaction for a bill-by-bill ledger, Tally prompts for the bill reference:

TypeWhen to UseExample
New RefCreating a new outstanding (new invoice)Sales voucher, Purchase voucher
Against RefSettling an existing outstandingPayment, Receipt
AdvancePayment before invoice — creates a creditAdvance to supplier
On AccountPayment not linked to a specific billUnallocated credit (clean up later)

Sunrise Retail — Receivables Outstanding (April 30, 2025)

Gateway → Reports → Statements of Accounts → Outstandings → Receivables
Period: As on 30-Apr-2025

Visual: Receivables Register — April 30, 2025

┌─────────────────────────────────────────────────────────────────────────────┐
│  RECEIVABLES — Sunrise Retail Pvt Ltd                  As on: 30-Apr-2025  │
├───────────────┬────────────────┬──────────┬──────────────┬──────┬──────────┤
│  Party        │  Invoice       │  Date    │  Amount      │  Due │ Days     │
├───────────────┼────────────────┼──────────┼──────────────┼──────┼──────────┤
│ Digital Hub   │ SR-2025-0042   │ Apr 10   │  ₹5,66,400   │May 10│ 10 days  │
│ Retail        │                │          │              │      │ remaining│
├───────────────┼────────────────┼──────────┼──────────────┼──────┼──────────┤
│ CloudStore    │ SR-2025-0048   │ Apr 12   │  ₹3,89,400   │May 12│ 12 days  │
│ Online        │                │          │              │      │ remaining│
├───────────────┴────────────────┴──────────┼──────────────┴──────┴──────────┤
│  TOTAL RECEIVABLES                        │           ₹9,55,800             │
└───────────────────────────────────────────┴─────────────────────────────────┘
Status: All invoices within credit period. No overdue bills as on April 30.

(Note: Digital Hub has a 15-day credit term; CloudStore has a 30-day credit term — both invoices are current.)


Sunrise Retail — Payables Outstanding (April 30, 2025)

Gateway → Reports → Statements of Accounts → Outstandings → Payables

Visual: Payables Register — April 30, 2025

┌───────────────────────────────────────────────────────────────────────────┐
│  PAYABLES — Sunrise Retail Pvt Ltd                  As on: 30-Apr-2025   │
├─────────────────┬──────────────┬──────────┬──────────────┬───────────────┤
│  Party          │  Invoice     │  Date    │  Amount      │  Due          │
├─────────────────┼──────────────┼──────────┼──────────────┼───────────────┤
│ TechWorld       │ TW-2025-0183 │ Apr 5    │ ₹14,16,000   │ May 20        │
│ Distributors    │              │          │              │ (30-day terms)│
├─────────────────┼──────────────┼──────────┼──────────────┼───────────────┤
│ Sparsh Tech     │ SP-2025-0092 │ Apr 15   │  ₹1,18,000   │ Apr 30        │
│ Solutions       │              │          │              │ DUE TODAY     │
├─────────────────┴──────────────┴──────────┼──────────────┴───────────────┤
│  TOTAL PAYABLES                           │          ₹15,34,000           │
└───────────────────────────────────────────┴───────────────────────────────┘

Sparsh Tech (₹1,18,000) is due April 30 — Kiran should make the payment today to avoid credit hold on future orders.


Recording a Partial Payment Against a Specific Bill

Scenario: Digital Hub pays ₹3,00,000 on May 7 (partial payment against SR-2025-0042 total ₹5,66,400):

F6 (Receipt)
Date: 07-May-2025
Ref: NEFT/RC-0507

Dr: SBI Bank — Madhapur              ₹3,00,000
Cr: Digital Hub Retail               ₹3,00,000

Bill Settlement screen:
  Type: Against Ref
  Bill Ref: SR-2025-0042
  Amount: ₹3,00,000  (partial — full bill is ₹5,66,400)
→ Ctrl+A

Outstanding after entry:

Digital Hub Retail — SR-2025-0042:
  Original:         ₹5,66,400
  Received May 7:  (₹3,00,000)
  Remaining:        ₹2,66,400  (still due)

Age-Wise Outstanding Report

The most important collection management tool:

Gateway → Reports → Statements of Accounts → Outstandings → Age-Wise

Tally groups outstanding bills by days overdue:

┌────────────────────────────────────────────────────────────────────────┐
│  AGE-WISE OUTSTANDING (Receivables)                As on: 25-May-2025  │
├──────────────────┬──────────────┬────────────┬────────────┬────────────┤
│  Party           │  0–30 days   │  31–60 days│  61–90 days│  90+ days  │
├──────────────────┼──────────────┼────────────┼────────────┼────────────┤
│ Digital Hub      │  ₹2,66,400   │      —     │      —     │      —     │
│ CloudStore       │  ₹3,89,400   │      —     │      —     │      —     │
├──────────────────┼──────────────┼────────────┼────────────┼────────────┤
│ TOTAL            │  ₹6,55,800   │      ₹0    │      ₹0    │      ₹0    │
└──────────────────┴──────────────┴────────────┴────────────┴────────────┘
All receivables are current (0–30 days) — healthy cash position.

Customising age buckets:

Age-Wise Outstanding → F12 (Configure)
→ Age Periods:
   Period 1: 0–30
   Period 2: 31–60
   Period 3: 61–90
   Period 4: 91 and above
→ Ctrl+A

Bills in the 60+ day bucket require immediate personal follow-up. Bills in the 90+ bucket should be reviewed for provisioning.


Practice Exercise

Exercise: On May 25, TechWorld sends a reminder — invoice TW-2025-0183 (₹14,16,000) was due May 20 and is now 5 days overdue. Sunrise Retail pays ₹10,00,000 now. Record the partial payment and show the remaining outstanding.

Show Solution
F5 (Payment)
Date: 25-May-2025
Narration: Partial payment against TW-2025-0183

Dr: TechWorld Distributors Pvt Ltd    ₹10,00,000
Cr: SBI Bank — Madhapur               ₹10,00,000

Bill Settlement:
  Type: Against Ref
  Bill Ref: TW-2025-0183
  Amount: ₹10,00,000 (partial)
→ Ctrl+A

Outstanding after payment:

TW-2025-0183:  ₹14,16,000
Paid May 25:  (₹10,00,000)
Remaining:      ₹4,16,000  ← 5 days overdue

At 18% p.a. interest (if penalty clause applies): Interest for 5 days: ₹4,16,000 × 18% × 5/365 = ₹1,025


Key Terms

TermMeaning
Bill-WiseTracking individual invoices within a party's ledger
OutstandingUnpaid invoices — Receivables (customer owes you) or Payables (you owe supplier)
New RefCreates a new outstanding bill — used when recording sales/purchase invoices
Against RefSettles an existing outstanding — used when recording payments/receipts
Age-WiseCategorising outstanding bills by days since due date
Aging AnalysisReport showing distribution of outstanding across time bands (0–30, 31–60, etc.)
Credit PeriodAgreed payment terms (e.g., 30 days from invoice date)

Module Summary

  • Enable bill-wise: Ledger → Maintain balances bill-by-bill: Yes
  • Outstanding reports: Reports → Statements of Accounts → Outstandings → Receivables / Payables
  • Sunrise Retail April 30: Receivables ₹9,55,800 (all current), Payables ₹15,34,000 (TechWorld May 20, Sparsh due today)
  • Partial payments: enter amount in Against Ref — Tally shows remaining balance on that specific bill
  • Age-wise report: groups bills by overdue period — key for proactive collections

Quick Quiz

1. When Digital Hub pays ₹3,00,000 against invoice SR-2025-0042 (total ₹5,66,400), the bill settlement type is:

  • a) New Ref
  • b) Against Ref
  • c) Advance
  • d) On Account
Answer

b) Against Ref — the payment is being applied to a specific existing outstanding invoice (SR-2025-0042). Against Ref reduces the balance on that bill; the remaining ₹2,66,400 stays outstanding.

2. The Age-Wise Outstanding report primarily helps identify:

  • a) Which products have the highest profit margin
  • b) Which outstanding bills are overdue and for how long
  • c) Which employees have expense claims pending
  • d) Which stock items are slow-moving
Answer

b) Overdue bills by age — essential for collections prioritisation. Bills in the 60+ day bucket need escalation; 90+ day bills may need provisioning as doubtful debts.