Meaning of sales in Tally Accounting
What is sales in tally? Sales in tally means that when a businessman in a business sells his product or service to another person and takes money in return, then it is called sales. Sales always take place between two persons in which one is the buyer and the other is the seller. In simple language, sales refers to all the goods sold related to services and production. The meaning of sales in Tally is to get money by a company or person by selling their production. In sales, the businessman can get profit by selling his production.
Understanding Sales in Tally
Sales is a small word but its definition is very wide. The word sales in tally accounting is used to mean that which is done in selling any goods or services by the businessman. Let me explain you by giving an example of a computer shop. Suppose you have a computer shop and a customer has purchased a computer from your shop by paying Rs 50,000/- then this whole process is called sales for you. Large companies have sales organizations that sell goods or services manufactured by the company. Companies keep employees for their profit on salary or on commission, who get their goods sold. But if the production of the company is high and sales are not being made, then the company may have to bear the loss. If the sales in the business are correct, then the company keeps on making profit and gets good revenue, but in case of less sales, the company suffers loss.
Example of Sales in tally
1. Face to face sales: – Many times it happens that big companies give samples of their products to their customers by going to them. In this only the sample is told. If the sample is liked by the customer, then he can buy the goods in more quantity. Apart from this, network marketing is also a part of face to face sales, whether it is purchased in credit or in cash, it will depend on the buyer and seller.
2. Online sales: – All types of e-commerce websites do this type of sales. In this, the customer buys goods online and pays it either online or cash on delivery. Amazon, Flipkart are all these e-commerce websites. Apart from these, the sales on social sites, Google add, You-Tube, etc. are also called online sales.
3. Tele sales: – The company gives all the information about its product to its customer through telephone or email. In this, all the quality of the product is told by the company to its customer so that the customer buys the company’s product.
Types of Sales in tally Accounting
1. Cash sales: – This is a type of cash sales. When an item is sold by the company in cash, then this type of transaction is called cash sales. Often companies give attractive offers or discounts to their customers to sell their product, so that their product is sold in cash.
2. Credit sales: – When a company sells an item to its customers on credit, it is called credit sales. In this type of sale, the company is increasing the loan on its customer. In return for borrowing, companies take some receivables from their customers. Companies compare parties and sell them on credit. If the company wants, it can also give discount on sales to its customers. When the company sells its products on credit to a customer, it gets the right to recover dues from its customers.
Sales Voucher Entry in Tally Accounting
When any production is sold by any company, the accountant has to enter it in tally. For this, I will tell you how to enter sales in Tally in a simple way. When a company sells its product to a person, it is sold in two ways, one will be sold in cash and the other will be sold in credit.
To enter sales in tally, first of all it is seen by the accountant whether the sales have been done in cash or in credit. When sales are entered by the accountant in Tally, then include the sales ledger in the sales group. If the item is sold in cash, then enter it in cash and if the item is sold on credit, then create a party ledger and add it to sundry debtor group.
While entering sales, it is also necessary to pay attention to how much GST is levied on the item being sold by the company and in which state the item is being sold. If the company has sold an item for Rs. 10,000/- in its own state and if 28% GST is being levied on that item then in this situation 14% CGST and 14% SGST will have to be taken from the customer. And if the item is being sold outside the state then 28% IGST will be taken by the company.
While making the entry of sales or purchase, the accountant has to take care of many things, if the entry of sales or purchase was wrongly done by the accountant, then the GST report of the company will be wrong.