How to create Tax and Retail Invoices in Tally

How to create tax and retail invoices in Tally

I have published another detailed post about creating GST invoice in Tally.ERP 9. If you want to know about GST invoice in Tally, go through that post.

Invoices are a big part of any business. In fact, without invoices, you cannot even run a business.

You need invoices to make sales. You need invoices to purchase products. You even need invoices for recording regular expenses for running your business.

Invoices help you know the exact amount of purchase, sales or expenses you have made in your business. Thus, invoices are an inseparable part of the business.

In this post we are mainly focusing on how to create Tax and Retail invoices in Tally.

You can easily create Tax and Retail Invoices in Tally for your business. For taxable sales and purchases, you will have to create a tax invoice and for retail sales and purchases you will have to create retail invoice.

Follow the below step by step procedure and you will learn today to create tax and retail invoices in Tally.

Creating Tax Invoice in Tally

First we will go through about how to create a tax invoice and then I’ll show you how to create retail invoice in tally.

Let’s start right away.

From Gateway of Tally, go to Accounts Info. as shown in the picture below.

Gateway-of-Tally-1-compressor

Then go and select Voucher Types

Accounts Info

In the Voucher Types menu, select Create

create voucher types in tally

Now comes the real art and practical implementation of Tally’s features.

We will create a Taxable Sales Voucher Type and which you can use while creating entries for taxable sales.

Along with that we will also set the Title of the Voucher, so when you print the voucher, “Tax Invoice” will be printed on the top of the invoice.

Let me show you how to do it.

When you press Create, you will see Voucher Type Creation Screen as shown in the picture below.

Taxable-Sales-in-Tally

 

I have marked a few areas in the picture which I changed while creating the voucher type. Don’t worry, I’ll explain each of them below.

  • I have written Taxable Sales  in the Name field. I wrote it because we are creating a voucher type for tax invoice.
  • Type of Voucher will be Sales because what we ultimately want is Tax Invoice for sales.
  • In the Printing options, in the middle column, I have selected Yes to print the invoice after the entry. This will automatically print the invoice after the entry. You can select no, if you want to.
  • Default Print Title refers to what is printed on the top of the invoice as a title. In this case, we want Tax Invoice, so I have written Tax Invoice.
  • Default Jurisdiction refers to the jurisdiction of the city in which you are operating which in my case is Surat. You can put the name of your city.

These were the settings you need to require for finally creating a Taxable Sales Invoice.

Now press Enter and Save the Voucher Type.

I will now show you actual creation of Taxable Sales Invoice in Tally and for which I have to create a sales entry in Tally.

From Gateway of Tally, go to Accounting Vouchers.

Then use one of the shortcuts in Tally which is F8 or select Sales from the dark green right hand bar in Tally.

Dark green right hand bar in Tally

As soon as you press F8 or select Sales, you will an option on screen like shown in the picture below.

Taxable Voucher Type in Tally

Tally will ask you to select a voucher type with which you want to create a sales voucher.

We have specifically created Taxable Sales voucher type for tax invoice, so we will select Taxable Sales.

After selecting the Taxable Sales voucher type, create a sales voucher. I will not go into the whole creation of sales voucher as I have already explained that in this post.

But as soon as you complete the entry with all the above settings as I have shown, a sales invoice will be automatically printed and it will look something like this.

Tax Invoice in Tally

This is how a tax invoice looks after it gets printed.

Did you the see the title named Tax Invoice on the top of the invoice? This is how a tax invoice is printed in Tally.

Creating Retail Invoice in Tally

To create Retail Invoice in Tally, you have to follow the same above procedure.

The only difference is that wherever I used Taxable or Tax word, you have to use Retail instead Taxable or Tax.

And you are done with the Retail Invoice in Tally. The process is the exact same as you have followed while creating the tax invoice above.

After you have completed a sales voucher for retail sales, the Retail Invoice will look something in the picture below.

Retail-Invoice-in-TallyAs you can see retail invoice looks exactly the same as tax invoice except the fact that it is a Retail Invoice.

Creating Taxable and Retail Purchase Invoice

In the same way as I mentioned above, you can create Taxable and Retail Purchase Invoices too.

You have to follow the same procedure but this time you have to select Purchase Voucher while creating the Voucher Type.

And Default Print Title will be Taxable Purchase Invoice or Retail Purchase Invoice and keeping all the settings as I have shown above the same.

In no time, you will be able to create taxable and retail purchase invoices in Tally with speed and wasting less time and using that saved time in completing tasks of importance.

Tally Invoice Format in Excel

You can also export the invoices in Tally in Excel. People often ask for Tally bill format in excel because they want to edit certain things before printing the fill bill and handing it to the customer.

In the one of the recent posts, I have shown a detailed of way of exporting literally anything from Tally.

So, if you want invoices from Tally in excel format, that is easy. Here is a step by step process.

  • Go and open the voucher which you want to export in excel format.
  • Now just press ALT+E and you will see exporting options.
  • Now press and select Excel(Spreadsheet) from the exporting options as shown in the picture.

Tally Invoice Format in Excel

  • And you will immediately get your invoice or bill in the Excel format.

Bill in Excel Format will look something like in the picture below.

Tally Bill Format in Excel

Now, you can easily edit anything in Excel or adjust the size of the bill to make it smaller or bigger or whatever you want to do.

At the end…

Creating sales and purchase invoices in tally is easy and simple.

I have also shown you how you can create taxable as well as retail invoices which are the two kinds of invoices which are mostly used in any business.

Now you can create invoices in Tally as per your customer and quickly print it to hand it to your customer.

If you have any questions or you are finding it difficult to understand, comment down below and I will happy to help you out.

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88 thoughts on “How to create Tax and Retail Invoices in Tally

  1. Vipin says:

    sir, my name is vipin.I have a doubt in tally.When i create invoices in tally, it accepts.But when i want to make credit note against a particular invoice,the system doesn’t accept it.I have created a sales invoice voucher for making invoices of our different stock items.But the Sysem doesn’t accept credit note entries after making a particular invoice.It shows error, ”other classification does not exist”.

    • Rishit Shah says:

      Hi, Vipin!
      You have to enable debit and credit notes in Tally and then you have to enable invoice mode for debit and credit notes also.

      This will solve your problems.

  2. Narendra says:

    Sir,I want to print sales invoice in 2 paper sizes but instead everytime changing paper size can i set 2 paper sizes permanantly in tally9 How?Reason behind is sometimes no of item is 1or 2 & sometimes they are more than 10-15

  3. firoj khan says:

    I m confuced in tally
    When i m create sales invoice in cash ,
    How to received money or money automatice received

  4. Parul handa says:

    Hello sir,

    I want to know how to enter quantity and rate per unit in taxable invoice and how i can calculate tax?

  5. Hemant Govekar says:

    I am into a business of edible commodities and according to the Laws , I have to print a FOOD WARRANTY certificate along with the VAT DECLARATION on the tax INVOICE .How do I add it?
    How do i setup a paper size of 6 inches height in tally?

    • Rishit Shah says:

      Hi, Hemant!
      I must say, it is an interesting question.

      There is no inbuilt option in Tally to attach the Food Warranty Certificate in Tally.
      You can hire a Tally Developer to do that.

      Paper size can be set up in Tally.
      Here are the instructions:

      From Gateway of Tally, press F12.
      Select Printing.
      Select Sales Transactions.
      Now, select Sales Invoice and you will get all the options including adjusting paper height.

    • Rishit Shah says:

      Hi, Vivek!
      Printing that many entries in one page would make your invoice look bad.

      You cannot by yourself change the formatting of printing entries.
      You can hire a Tally Developer for you to do that.

  6. Hemant Govekar says:

    Hi Rishit ,
    Thanks for your reply.I have got a query regarding stock transfer within the same firms branch in two states”
    How should I carry out the accounting wherein I have a head office in maharashtra and a branch in goa. I transfer stocks from maharshtra to goa.
    Secondly, do I have to maintain separate books of accounts for both the firms or can they be managed from the HO in maharshtra?

  7. Hemant Govekar says:

    Hi Rishit,
    I use tally erp9 to print the invoice in the a4 format.since the batch option is activated, it utilises much of the space I.e. The commodity is printed on one line and the brand on the second.is there any setting wherein the batch can be printed in the same line as the commodity so as to accommodate more commodities in the available space .

  8. akbar says:

    Hi, Rishit,
    I currently use tally erp9, it’s very easy but can you sole my one problem in sales invoice, my question is I created normal sales entry but I include some amount in grand total for example my sales entry is 500$ but I need to add some amount in grand total is this possible in tally to display 500$ + add some amount.

    • Rishit Shah says:

      Hi, Akbar!
      I understand your problem.

      I can answer your question but I have to know what you want to add.

      If it is an expense related to sales, you can create a ledger for that expense and easily add it.

  9. vinod kumar rehan says:

    hi,
    i m a textiles retailer. i want to print retail sales invoices, without tax and without maintaining inventeories. how can i?

  10. Ravi Sonawane says:

    Hi Rishit
    Ravi Here, When i passed Sales entries in tally , every time i have to feed customer name and address for same customer in sales voucher, is there any trick in tally to save my time?

    • Rishit Shah says:

      Hi, Ravi!

      When you create a ledger for your customer in Tally, enter all the information at that time.

      This way you do not have to enter all the address and other information every time you pass sales entry.

      You have to type the customer name every time in order to pass the entry for him.

      You can type a few letters and Tally will highlight the names, so this will save your time.

    • Rishit Shah says:

      Hi, Parminder!

      It is very easy!

      Debtor means from whom you have take money for goods sold on credit.

      Creditor means the person who has take money from you because you have purchased something from him/her on credit.

      I am sure now you will understand this.

  11. Sanjay Kumar Tiwari says:

    Hi rishit
    my queetion is how to create service invocie with material or quantity? As we have repaired 10 pc , each pc repairingcharge in direrent amount. how to create service invoice service tax ?

    • Rishit Shah says:

      Hi, Amarjeet!

      You can do that easily.
      While passing a sales entry, go to Configure which is in the bottom right corner or just press F12.

      Now, select Yes for the option Provide additional descriptions for stock item name.

      If you will enter a stock item after applying this setting, Tally will ask to enter description.
      Enter your product colour and you have it.

  12. Aakash Jain says:

    Hello!
    I want to create invoice for my travel agency business, which mostly includes Air & Rail Travel. So i dont want any suppliers ref no., instead of that i want PNR No., carrier name, Sorce-destination

    Any help?

    • Rishit Shah says:

      Hi, Aakash!

      You can enable to provide additional descriptions for stock item name in the sales voucher.
      There you can enter the details you mentioned.

      You can enable the above feature by going into Configuration menu while in the sales voucher.

  13. ALAKESH BANERJEE says:

    I WANT TO START A E COMMERCE SITE. CAN I CREATE TAX INVOICE IN TALLY AND SEND IT TO CUSTOMER. PARALALY IS IT MAINTAIN STOCK AND ACCOUNTS?

  14. Devendar says:

    Hi Rishi,

    I have been evaluating Tally ERP for my Coworking Centre which is going to be operational shortly. Have gone through Tally accounting and billing services, etc., Just want to know, after the bill is ready to be printed, instead of Printing, can I send it to Customers SmartPhone or mail it? Is this feature available in Tally? This is used by most global retailers today and we want the same feature in our system & avoid printing. Do let me know if it’s possible.

  15. waseem ahmed says:

    hi
    dear sir i am using tally erp
    when i m creating a sales voucher as item invoice the tally erp than i cant select the sales ledger from field that i have created in ledger
    pls guide me on this problem

  16. nitesh chandra says:

    Hii, we have a garment business , i want to make shirts purchase entry in tally with shirts size & colour. can you help me for it.

    • Rishit Shah says:

      Hi, Nitesh!

      You can create a Purchase Voucher and in there enter the stock item like Shirt 32 Black.
      Similarly create stock items for different shirts and you are set.

      Here are some posts to show you create stock items and purchase entry.

  17. Mohammed Rafiq says:

    RISHIT SHAH Ji,
    My question is that I have to sale fabric and 5% tax applicable on fabric so i have to make invoice including tax It means tax include in MRP, tax will not show separate, But I have to show tax analysis in end of invoice.
    Please tell me setting in tally erp9

    Thanks Regards,
    Mohammed Rafiq

    • Rishit Shah says:

      Hi, Mohammed Rafiq!

      For any part of the taxation, you need to buy the DVD.
      But, DVD is currently is not updated for GST, so please wait for my DVD as I release it in few days.

  18. Sankara Pandian says:

    Hello Sir,

    i have 2 questions.how to create 1)Customer name in which class in Retail shop sales.means ,if we created in Sundry debtors,then Balance sheet showing so many debtors. 2) Which class comes under Advance payment from customers. if we have 20 shops then daily we need create 200 ledgers in the name of customers or any other way to consolidate the sales from shops.we are getting may tender types from customers,like Cash,Card,Cheque, so daily we need to put 200 entries for Receipt,Contra in Branch office.can you please explain.

    • Rishit Shah says:

      Hi, Sankara!

      You can create Groups in Accounts Info. as Retail Sales and in there, it will show all the debtors.
      In Balance Sheet it will show just Retail Sales.

      Secondly,
      What you are doing is what you have to do. There is no other option for this.

      If you are having 200 sales daily, you need to pass 200 entries for the same.

  19. Sri Aurobindo HArpagon Workshop says:

    We are a retail store, selling various product categories where the new GST rates 3%,5%,12%,18%,28% are applicable depending on the product category.
    We have been selling through POS terminal directly linking to our tally software. We now want to generate a composite POS Invoice multiple items.
    How do we make and print each POS retail invoice?
    Thank You.

    • Rishit Shah says:

      Hi, Sri Aurobindo!

      For using POS Invoice functionality in Tally, you need to create a Voucher Type and set YES to POS Invoicing.

      Now, you just need to add the proper GST rates and start billing.

  20. GUPTA SK says:

    When i export a sale invoice from tally to a pdf file…. it is getting small in comparison of original print from tally

  21. Ravi Saran says:

    Hello sir
    My business is of transportation and I want to create invoice on tally but format is not according to my manual.As my manuala copy includes-
    Date, Gr.no, No of packages, weight, Freight No, Amount, Consigner, consignee and so on.
    How can I create such format

    • Rishit Shah says:

      Hi, Ravi!

      In Tally, except Freight No and GR No, all options are available when you create an invoice.
      You can add the freight no and Gr no in description to the voucher entry or narration.

  22. vishwajeet says:

    hiii,rishit!
    i m retailer wants the solution on HOW TO GIVE THE COMMISSIOON TOO SALESMAN ( BILL BY BILL) ON TOTAL VALUE OF SALES..

    • Rishit Shah says:

      Hi, Vishwajeet!
      You can create a ledger names commission and after entering the inventory and other details, enter the commission ledger and set the rate as say, 10% in the rate column.
      The rate of discount will be automatically calculated.

  23. rahul says:

    hi,
    when ever i make a sales voucher entry i have to enter price manually, i want that it automatically takes the price of that stock item how can i enable the feature for this …please suggest

    • Rishit Shah says:

      Hi, Rahul!

      If you enter the price of a stock item for the first time, you have to enter it by yourself in Tally.
      After that entry, Tally automatically takes the last price you have entered.

      This feature is enabled by default in Tally.

  24. GAANA says:

    HI SIR
    HOW DO I EXPROT TALLY DATA IN TO EXCEL AS SEPERATE LIKE LOCAL SALES AND PURCHASE WITH DIFFERENT PERSENTAGE AND EXPORT LOCAL AND INTERSTATE ENTRIES SEPERATLY

    • Rishit Shah says:

      Hi, Gaana!

      I am assuming you have created different ledgers for different sales with different percentages i.e. different ledger for interstate sales and local sales.

      Now, go to Display > Account Books > Ledger
      Select the sales ledger for which you want to export the details

      Now, press ALT+E and you have your exported file in Excel.

  25. Kartheek says:

    Sir

    Please let me know how to pass an entry for online payments or if customer making payment to dealer online mobile transfer or upi how to pass entry

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