What is a Payment Voucher?
A Payment Voucher in Tally is used to record money paid by a business to another person, supplier, organization, or for business expenses.
It is commonly used when the business makes payments through Cash or Bank. A Payment Voucher helps maintain accurate records of payments and reduces the outstanding balance of a supplier or other payable party.
For example, when a business pays a supplier against an earlier credit purchase, the supplier’s outstanding bill can be settled using Agst Ref (Against Reference) in the Payment Voucher.
Example
Suppose a business purchased goods from Larsen & Toubro Limited on credit and recorded the purchase using Bill No. PUR/01/85.
Later, the business pays ₹5,900 by cash against that bill.
The Payment Voucher records:
- Payment amount — ₹5,900
- Payment mode — Cash
- Supplier — Larsen & Toubro Limited
- Bill No. — PUR/01/85
- Reference Type — Agst Ref
- Settlement — Full payment
Why is a Payment Voucher Used?
A Payment Voucher is used to record:
- Payments made to suppliers
- Payment of business expenses
- Cash payments
- Bank payments
- Payment against purchase bills
- Partial settlement of outstanding bills
- Full settlement of outstanding bills
- Other business-related payments
It helps the business track where money has been paid and how much is still payable.
How to Create a Payment Voucher in Tally
Open the Payment Voucher
Open the company in Tally and go to:
Gateway of Tally → Vouchers → F5: Payment
Select Voucher Mode if required.
Enter the Payment Date
Enter the date on which the payment was actually made.
For example:
11/04/2026
Select the Payment Mode
Select the account from which the payment is made.
It can be:
- Cash A/c
- HDFC Bank
- State Bank of India
- ICICI Bank
- Axis Bank
- Or any other bank ledger maintained by the business.
Select the Party Ledger
Select the relevant Sundry Creditor or other payable ledger.
For example:
Larsen & Toubro Limited
The supplier’s account is debited when payment is made.
Use Agst Ref for an Existing Bill
If the payment is being made against an existing purchase invoice, select:
Agst Ref
Then select the relevant purchase bill.
For example:
PUR/01/85
This tells Tally that the payment is being made against an existing outstanding bill.
Enter the Payment Amount
Enter the amount being paid.
The payment can be:
Full Payment
If the entire outstanding bill is paid, the bill will be completely settled.
Partial Payment
If only part of the bill is paid, the remaining amount will continue to appear as outstanding.
For example:
| Particulars | Amount |
|---|---|
| Original Purchase Bill | ₹10,030 |
| Payment Made | ₹8,000 |
| Remaining Outstanding | ₹2,030 |
Save the Voucher
Check the date, party, payment mode, bill reference, and amount before accepting the voucher.
The payment will then be reflected in the supplier’s ledger and outstanding reports.
Payment Voucher — Basic Accounting Entry
When payment is made to a supplier:
| Particulars | Dr. (₹) | Cr. (₹) |
|---|---|---|
| Sundry Creditor | Payment Amount | — |
| Cash/Bank A/c | — | Payment Amount |
Easy Rule
Supplier/Creditor → Debit
Cash/Bank → Credit
Important Points to Remember
- F5 is generally used for Payment Voucher.
- Use Payment Voucher when money is paid by the business.
- Payment can be made through Cash or Bank.
- Use Agst Ref when settling an existing bill.
- Use New Ref when recording a new reference, where applicable.
- Full payment completely settles the bill.
- Partial payment leaves the remaining amount outstanding.
- For supplier payments, the Sundry Creditor is debited.
- Cash or Bank is credited.