2. What Is Bill Settlement
■ Usually, the company buys and sells goods on a
credit basis from parties. We can use purchase
and sales vouchers to enter the transactions
said earlier. Then, Tally generates outstanding
reports for payable and receivables
automatically.
3. What are Bills Receivable
Bills Receivable refers to the amount that a
company is entitled to receive from its
customers for Goods and Services sold on
credit.
Accounts Receivables are also known as
Debtors, Trade Debtors, Bills Receivables or
Trade Receivables.
4. What are Bills Payable
When you Buy Goods and Services with an
arrangement to Pay later, such an Amount till it
is paid, is referred to as Accounts Payable.
Accounts Payable is also called as Bills
Payable, Sundry Creditors.
5. ■ Use credit period: To ensure that all the credits are
tracked systematically, it is always advisable to
maintain your accounts by specifying the credit period
or due date for the party. You can specify a credit period
of say 30 days in the party ledger for the party to make
the payments. On recording a credit sale for such
parties, TallyPrime reflects the pending amount and the
due date based on the credit period specified for the
party. This helps to avoid conflicts with your parties,
systematically track your outstanding receivables, and
recover the payments from your parties on time
6. Use credit limit: Just like the credit period, TallyPrime
also provides you with the facility to set a credit limit for
parties. If the credit limit is exceeded then while passing
the transaction, TallyPrime prompts the exceeding amount
for the user to make sure that the pending bills of that
party are cleared first as it has exceeded its set credit limit.
You can also alter the credit limit in the party ledger and
override it if required.
7. Bills Receivable Vs Bills Payable
Receivables Payables
Money owed to
your Business
Money you own to
your Supplier
Current Asset Current Liability
Sundry Debtors Sundry Creditors
8. How to Check Bills Receivables and
Bills Payables
IN CASE OF RECEIVABLES:-
GOT > Display More Reports > Statements of
Accounts > Oustandings > Receivables
IN CASE OF PAYABLES:-
GOT > Display More Reports > Statements of
Accounts > Oustandings > Payables
9. Scenario
1st April Started Business with SBI Bank Rs.20,00,000.
1st April Purchased Goods from Rahul Provisions
Item Name Quantity Rate
Nokia-G21 10 NOS 18,500
Samsung Galaxy 1 5 NOS 25,000
Item Name Quantity Rate
LG Washing Machine 15 NOS 23,800
Samsung Refrigerator 10 NOS 43,300
1st May Purchased Goods From Rohit Traders
10. 1st May Sold Goods to Kishore Enterprises
Item Name Quantity Rate
Nokia-G21 8 NOS 19,500
Samsung Galaxy 1 3 NOS 28,000
Item Name Quantity Rate
LG Washing Machine 12 NOS 25,000
Samsung Refrigerator 8 NOS 46,000
1st May Sold Goods to Mohan Corporations
31st Dec Settle all the bills agst Receivable and
Payable via SBI Bank