How to use the Automatic Round Off feature in Tally ERP 9?

the the ROUND OFFROUND OFF feature feature

of of

Tally ERP 9Tally ERP 9

Automatic Rounding is a very useful feature in Tally ERP 9, helps to

speed up Sales and Purchase transactions.

Apart from these two vouchers Auto Rounding can be used in voucher

types like Credit note, Debit note, Delivery note, Receipt note etc.

How/When to use Round off ?How/When to use Round off ?

Rounding off is the adjusting of smaller fractions of amount (Eg:

paisa) to it’s nearest bigger value (Rupees). The Rounding could be

➢ Upward Rounding

➢ Downward Rounding

➢ Normal Rounding

➢ Rs 10.55 rounded off to Rs 11 (upward rounding)

➢ Rs 10.55 rounded off to Rs 10 (downward rounding)

ExampleExample

In accounting we can treat Rounding either as an income or an

expense. If Round off ledger shows a debit balance it is an expense to the

business, if it shows a credit balance it can be treated as income. Finally

used in profit and loss account for profit calculation at the end of the

financial year.

Hence create a Round off ledger under indirect income or indirect

expense, the normal procedure of treatment of Round off in Tally ERP 9.

At first we should create a ledger namely Round off under indirect

expense or indirect income.

Automatic Round off in sales voucherAutomatic Round off in sales voucher

Creating Voucher classCreating Voucher class

The second step is to create a voucher class; Voucher class has several

uses in Tally accounting.

To create voucher class

Go to

➢ Gateway of Tally >> Accounts info >> Voucher Types >> Alter

Select Sales voucher and press Enter, in the voucher type alteration

screen, continue to press enter until you reach “Name of class”

Type a voucher class name there; Let’s type name “Retail”

Under Additional accounting entries

Ledger Name: Round off (select the ledger we have created at the

beginning)

Type of calculation: Select “As total amount rounding”.

There are several rounding calculations available like As Flat rate, as

additional exercise, as surcharge, as user defined value, based on

quantity, on current subtotal, on item rate, on Total sales etc.

Press Enter, you will get a new screen, called “class screen”

In the class screen press enter and under

Default accounting allocations for each item invoice

Ledger name: select any sales ledger here Sale

Percentage: 100%

Rounding method: Three rounding method available, Normal, Downward

and upward. Let’s select “Normal roundingNormal rounding”

Rounding Limit: You can set a limit for rounding, the maximum limit to

which an amount is to be rounded. This may be up to Rs 1, Rs 10, or

Rs 50 Etc. The setting depends on the decision of management. Set the

limit Rs 1 here.

Remove if zero: Yes

The final screen will look like

Press Enter and save the screen; save the voucher type alteration

screen also.

Now enter a sales transaction

Crocodile T shirt XL sold for Rs 699.99

Go to

Gateway of Tally >> Accounting Vouchers >> Sales

Press F8 or click on sales button to have the sales voucher screen.

Tally ERP 9 will ask to select the voucher class to be used for the entry

with voucher class list. See image below

Select newly created voucher class “Retail”

You can see a round off ledger already existing in sales voucher, see the

image.

Put the entry of the transaction Crocodile T shirt XL sold for Rs 699.99

Immediately after entering Quantity and Rate, the Round off amount will

be calculated automatically, according to the method chose.

See the below image