Discount Voucher in TallyPrime

Discount Voucher

A Discount Voucher in TallyPrime is used to record and manage discounts associated with purchase and sales transactions. A discount is a reduction in the price or value of goods or services.

A business may give a discount to its customers while making sales or receive a discount from its suppliers while making purchases. Discounts can be recorded along with the original Purchase or Sales Voucher or, depending on the nature of the transaction, maintained separately.

In practical TallyPrime transactions, discounts can be applied item-wise or on the total invoice value.

What is Discount?

A discount is a reduction in the original price or value of goods or services.

For example, if goods are sold for ₹20,000 and a discount of ₹1,000 is given to the customer:

Original Value = ₹20,000
Discount = ₹1,000
Net Value = ₹19,000

The customer therefore has to pay ₹19,000.

1)_Discount Allowed

Discount Allowed is the discount given by a business to its customers when selling goods or services.

Since the business gives up part of the amount that it could have received from the customer, Discount Allowed is generally treated as an expense.

Example

A business sells goods worth ₹20,000 to a customer and allows a discount of ₹1,000.

Sales Value = ₹20,000
Discount Allowed = ₹1,000
Amount after Discount = ₹19,000

In TallyPrime, Discount Allowed A/c is generally created under the Indirect Expenses group.

Discount Allowed Ledger

Particular	Details
Ledger Name	Discount Allowed A/c
Under Group	Indirect Expenses
Used For	Discount given to customers
Nature	Expense

2)_Discount Received

Discount Received is the discount received by a business from its suppliers while purchasing goods or services.

It reduces the amount payable to the supplier and is generally treated as an income.

Example

A business purchases goods worth ₹20,000 from a supplier and receives a discount of ₹1,000.

Purchase Value = ₹20,000
Discount Received = ₹1,000
Amount Payable = ₹19,000

In TallyPrime, Discount Received A/c is generally created under the Indirect Incomes group.

Discount Received Ledger

Particular	Details
Ledger Name	Discount Received A/c
Under Group	Indirect Incomes
Used For	Discount received from suppliers
Nature	Income

3)_Item-wise Discount

An item-wise discount is a discount applied separately to individual stock items in a Purchase or Sales Inventory Voucher.

Different stock items can have different discount percentages.

Example

Suppose a sales invoice contains:

Stock Item	Amount	Discount
USB Keyboard	₹7,500	5%
Wireless Mouse	₹6,500	6.3%

Here, the discount is calculated separately for each stock item.

This method is useful when different products have different discount rates.

4)_Total Invoice Discount

A Total Invoice Discount is a discount applied to the combined value of all stock items after calculating the individual item amounts.

Example

Suppose an invoice contains:

Stock Item	Amount
USB Keyboard	₹7,500
Wireless Mouse	₹6,500
Total Invoice Value	₹14,000

If a 6% discount is given on the total invoice value:

Total Value = ₹14,000
Discount = 6%
Discount Amount = ₹840

Therefore:

Value after Discount = ₹14,000 − ₹840 = ₹13,160

This is different from item-wise discount because only one discount percentage is applied to the combined invoice value.

Item-wise Discount vs Total Invoice Discount

Particular	Item-wise Discount		Total Invoice Discount
Discount applied on	Individual stock items		Combined invoice value
Discount rate	Can be different for each item		Usually one rate for the invoice
Example	Keyboard 5%, Mouse 6.3%		Total invoice 6%
Calculation	Item-by-item		After adding all item values
Common use	Different products have different discounts		Same discount rate applies to the whole invoice

5)_Discount and GST

Discounts can affect the taxable value of a transaction depending on the nature of the discount, when it is given, and the applicable GST rules.

For practical TallyPrime exercises, students may encounter transactions where the discount is considered before calculating GST. For example:

Goods Value → Discount → Taxable Value → GST → Final Invoice Value

Important Points

• Discount Allowed is a discount given to customers.
• Discount Received is a discount received from suppliers.
• Discount Allowed is generally classified under Indirect Expenses.
• Discount Received is generally classified under Indirect Incomes.
• Discounts can be applied item-wise in inventory transactions.
• A discount can also be applied to the total invoice value.
• Item-wise discounts can have different percentages for different stock items.
• A total invoice discount is calculated after combining the values of the applicable stock items.
• Discounts can be entered as a percentage or amount, depending on the transaction and TallyPrime configuration.
• GST treatment of a discount depends on the nature and timing of the discount and applicable GST rules.
• Students should understand the difference between Discount Allowed and Discount Received before creating the respective ledgers.
• Students should also understand the difference between item-wise discount and total invoice discount when entering inventory transactions.

How to enable discount option in tally?

• Gateway of tally—->F 11 Features—–> Use Discount Column in Invoices —–>Yes