Getting paid on time: tracking receivables and credit limits in TallyPrime

TallyPrime can track what a customer owes in two ways: as one overall balance, or bill by bill. With an overall balance, receipts are simply set against the total. With bill-wise tracking, TallyPrime keeps the outstanding amount against each invoice, and that is what makes due dates, ageing, overdue amounts and interest possible.

To switch it on, set Enable Bill-wise entry to Yes in F11 (Features), then set Maintain balances bill-by-bill to Yes in each customer’s ledger. When you record a sale you create a New Ref, and when the customer pays you settle it with Against Ref. Money received before an invoice can go On Account and be matched to the bill later.

In each customer ledger you can enter a Default Credit Period, in days by default, or in weeks, months or years. TallyPrime then calculates the due date for each credit sale. Credit periods only work when bill-wise tracking is on.

You can also give each customer a credit limit, the maximum credit you have approved for them. Turn on Check for credit days during voucher entry in the ledger, and TallyPrime shows whether the customer has anything outstanding when you start a new voucher, so the person invoicing sees what the customer already owes before handing over more goods.

To review usage, open the Group Outstandings report for Sundry Debtors and compare each customer’s outstanding balance with their limit. Tally points out that this catches customers approaching their limit even when none of their invoices are overdue yet.

Outstanding reports are under Display More Reports, Statements of Accounts, Outstandings: Receivables for all customers, Ledger for one customer, and Group for a group such as Sundry Debtors. Each shows the pending amount, the due date and how many days a bill is overdue. Alt+G takes you straight to Overdue Receivables.

Ageing shows how long amounts have been outstanding. Tally’s default bands are 0 to 45 days, 45 to 90, 90 to 180 and over 180, and you can set your own with F6, by bill date or by due date. Ageing by due date is usually the one to chase from, because it shows how late a customer is against the terms you agreed.

If your terms charge interest on overdue bills, TallyPrime can calculate it. Enable interest calculation in F11, then activate it in each ledger that needs it. Simple parameters suit one fixed rate; advanced parameters handle rates that change over time and grace periods for customers.

Interest can be worked out bill by bill or on the whole ledger balance, and reports show it by group, by ledger or per invoice, including part-paid bills. To charge it, record a debit note using a voucher class set for interest accounting, so the entry links back to the calculation.

From the Group Outstandings report you can select several customers at once, choose Reminder Letter or Ledger Outstanding, pick the ageing interval and send them. Alt+M shares a report by email or WhatsApp, and Alt+P prints it for customers you visit in person. Tally says email works with Gmail and Yahoo through OAuth 2.0, and TallyPrime doesn’t store your email password.

WhatsApp sharing arrived with TallyPrime Release 4.0, released in November 2023, and sends invoices, reports and reminder letters to a customer’s WhatsApp number. It needs a WhatsApp for Business sign-up from inside TallyPrime, business verification, an active subscription, approved message templates and a WhatsApp number in each customer ledger. If you’re on an older release, upgrading needs an active TSS.

These reports are only as good as the data behind them. Entering each customer’s opening bills one by one, rather than a single balance, is what lets ageing and reminders work from day one. Powercomputers configures TallyPrime licences, features and data, customizes reports and invoice formats, handles TSS renewals, and trains your team in-house, on-site or remotely.

Book a free demo and we’ll show you the outstanding and ageing reports with an example of your own customers and terms, and what it takes to set them up for your business.