Payment and Receipt Vouchers
F5 Payment and F6 Receipt vouchers — Sunrise Retail's April rent payment and customer collections
Prerequisites: Module 6 — Contra Entries
Learning Objectives
- Record payment to a supplier or expense using Payment voucher (F5)
- Record receipt from a customer using Receipt voucher (F6)
- Link payments/receipts to outstanding invoices (bill-by-bill)
- Enter Sunrise Retail's April rent payment, salary payment, and cash sales receipt
Payment Voucher — F5
A Payment voucher (F5) records any outflow of cash or bank money to a third party — supplier payments, salary, rent, utility bills, TDS deposits, etc.
Payment Voucher Structure
With cheque details: After entering the bank ledger, Tally prompts for:
- Cheque Number
- Bank Name (auto-filled from ledger)
- Date (for post-dated cheques)
Receipt Voucher — F6
A Receipt voucher (F6) records any inflow of cash or bank money from a third party — customer payments, loan received, income from other sources.
Receipt Voucher Structure
Sunrise Retail — April 2025 Payment and Receipt Entries
Sneha Reddy enters all April payment and receipt vouchers
Payment 1 — Apr 8: Office Rent (with GST)
Sunrise Retail pays ₹35,400 for April rent by cheque (₹30,000 base + CGST ₹2,700 + SGST ₹2,700 @ 18%).
ASCII Screen: Payment Voucher — Rent with GST
Verification after entry:
- P&L → Office Rent: ₹30,000
- Balance Sheet → Duties and Taxes → Input CGST: ₹2,700 Dr; Input SGST: ₹2,700 Dr
- SBI bank balance: reduced by ₹35,400
Bill-by-Bill Settlement — Paying a Supplier Against an Outstanding Invoice
When paying TechWorld Mumbai against their specific invoice, Tally links the payment to the bill:
This marks TW-2025-0183 as "Paid" in outstanding reports.
Note: In Sunrise Retail's April 2025, TechWorld invoice is still on credit — payment happens in a future month.
Payment 2 — Apr 30: Salary Payment
Sunrise Retail pays April salaries totalling ₹1,50,000.
| Employee | Salary |
|---|---|
| Kiran Sharma (MD) | ₹50,000 |
| Sneha Reddy (Finance) | ₹45,000 |
| Ramesh | ₹25,000 |
| Priya | ₹18,000 |
| Suresh | ₹12,000 |
Full payroll via Payroll module is covered in Module 24. For now, a single journal-level salary entry:
Receipt 1 — Apr 25: Cash Sales Collection
3 walk-in customers pay cash for phones at ₹15,000 each = ₹45,000 (inclusive of GST).
GST calculation: ₹45,000 ÷ 1.18 = ₹38,136 taxable; CGST 9% = ₹3,432; SGST 9% = ₹3,432 (approx ₹38,136 taxable).
Alternative: Use Sales (F8) with cash as the party — cleaner for inventory tracking.
Receipt 2 — (Future Month) Collection from Digital Hub
Digital Hub agreed to pay by May 10, 2025. When payment arrives:
ASCII Screen: Receipt Voucher — Digital Hub Payment
After entry: Digital Hub outstanding = ₹0 (fully settled). SBI increases by ₹5,66,400.
Viewing Outstanding Reports
Sunrise Retail Receivables after April entries:
| Party | Invoice | Amount | Due Date |
|---|---|---|---|
| Digital Hub | SR-2025-0042 | ₹5,66,400 | 10-May-25 |
| CloudStore | SR-2025-0048 | ₹3,89,400 | 12-May-25 |
Sunrise Retail Payables after April entries:
| Party | Invoice | Amount | Due Date |
|---|---|---|---|
| TechWorld | TW-2025-0183 | ₹14,16,000 | 19-May-25 |
Multi-Account Payment (One Cheque, Multiple Expenses)
A single cheque often covers rent + maintenance or salary + bonus:
Practice Exercise
Exercise 1: CloudStore pays ₹3,89,400 into Sunrise Retail's SBI account on May 12, 2025. Record the receipt with bill settlement.
Show Solution
After entry: CloudStore outstanding = ₹0. SBI balance increases by ₹3,89,400.
Exercise 2: Sunrise Retail pays electricity bill ₹8,500 in cash from petty cash on April 18. GST is not applicable (electricity = exempt). Record the payment.
Show Solution
No GST entries — electricity for commercial consumers is exempt at the point of billing.
A trading firm in Hyderabad called their CA, panicking. "Digital Hub's ledger shows ₹11 lakh outstanding from last year, but we know they paid in full. Where is the money?" The CA opened Tally and ran the bill-wise outstandings report — every invoice was still flagged as unpaid. Then he checked the Receipt vouchers from the past 9 months. Every single Receipt had been posted with "On Account" instead of "Against Ref." Money had hit the bank correctly, the customer's overall ledger balance was right, but no invoice was ever linked to a payment. The customer ledger had a ₹11 lakh debit (invoices) and ₹11 lakh credit (receipts) sitting side-by-side, both visible in outstandings. The fix took an entire weekend: open each receipt, edit it, select Against Ref, link to the right invoice. The mistake had compounded for 9 months because nobody ran the bill-wise report until year-end. Today the firm's monthly closing checklist starts with: "Bill-wise outstanding report — every entry should reconcile to actual unpaid invoices."
Key Terms
| Term | Meaning |
|---|---|
| Payment Voucher (F5) | Records outflow from business bank/cash to third parties |
| Receipt Voucher (F6) | Records inflow from third parties into business bank/cash |
| Against Ref | Bill settlement mode — links payment to a specific outstanding invoice |
| New Ref | Creates a new bill entry — used for advance payments with no prior invoice |
| On Account | Payment not linked to any specific bill |
| Outstanding | Unpaid bills — shown in Receivables/Payables reports |
| Post-dated cheque | Cheque with a future date — recorded in Tally as optional voucher |
Checklist — you're ready to proceed when you can:
- Press
F5and enter the April 8 rent payment with GST split (3 debit lines, 1 credit line) - Press
F6and enter the cash sales receipt with GST breakdown - Use the Bill Settlement screen to link a receipt to invoice "Against Ref"
- Open the Outstandings report and confirm Digital Hub and CloudStore are showing as receivables
- Explain the difference between "Against Ref", "New Ref", and "On Account" in bill settlement
- Enter the April 30 salary payment of ₹1,50,000
Sunrise Retail pays rent by cheque. Which voucher type is used?
When Digital Hub pays Sunrise Retail by NEFT, the debit entry is:
'Against Ref' in bill settlement means:
Next up → Module 8: Journal Entries — non-cash adjustments: depreciation, provisions, accruals, and GST reversals using F7.