Audit Of Sundry Receivable and Payables in Tally ERP 9

AUDIT AREA: - SUNDRY DEBTORS AND CREDITORS

OBJECTIVE: - Risks

Ø The accounts receivable listing or individual balances may be inaccurate

Ø Accounts receivable balances may not exist

Ø Accounts receivable may not be collectible

Ø Bad debts write-offs may not be valid

Ø Sales transactions may be processed in the wrong period

Using Tally.

1.Fixing credit limit to respective customers/supplier.

Credit Limit - Amount.

Once if we fix credit limit to a customer then after crossing credit limit tally does not allows entering any sales in that Ledger a/c.

Gateway of Tally – Accounts Info – Ledgers-Credit limits- Sundry Debtors/ Sundry Creditors- Enter Amounts in credit limit column.

Credit Limit – Period.

1.      To activate credit limit period for a particular supplier or customers account. We have to activate Maintain Bill Wise Details option. Press F11- under accounting feature type Yes to Maintain Bill Wise Details.

2.      Then while creating new ledger account of supplier or customer we have to activate Maintain balances bill by bill and then activate Default Credit Period by specifying No. of days.

This option will maintain bill wise due date for specified supplier or customer.

Once if we fix credit limit to a customer then after crossing credit limit tally does not allows entering any sales in that Ledger a/c.

Gateway of Tally – Accounts Info – Ledgers-Credit limits- Sundry Debtors/ Sundry Creditors- Enter Amounts in credit limit column.

2. View of list of over due bills.

List of over due bills can be obtained by using Over Due Receivables & Payable   

Gateway of Tally – Display – Exception Report-Over Due Receivables/ Payables.

This option can be better used for ledger scrutiny and payment performance of a customer.

3.Age wise analysis of as single ledger account.

If you are not already in the receivables screen:

Gateway of Tally -> Display -> Statements of Accounts -> Outstanding->Ledger

Select the ledger account.

Select (click) Age-Wise.

Select one of the two Methods of Ageing: By Bill Date or By Due Date

Set the age periods required for the report.

An earlier setting is given and can be accepted as it is or modified.

The aged bills report is produced accordingly. You can drill down to query the individual invoices.

4.Over all verification of recording of sales bill in case where the sales bill Nos. are entered manually in tally 6.3.

Step 1. Go to Sales Register- Gateway of Tally –Display-Account Book- Sales Register.

Step 2. Select the period for which we want to check the recording.

Step 3. Press F5 to covert the sales register into columnar format. Activate only Show Voucher Number option by pressing YES. And for all other option it should be NO so that we can get the required data.  Under type of column option Select – End of the List option. At this stage we can get the sales register in columnar format  so that we get only required data.

Step 4. Export the columnar sales register in excel

1.Click-Export- Press Y- this exported file will either go to your tally data folder or it may be on your desktop. Open this file in excel.

2.When you open this file in excel  there appears a text import wizard - click ondelimited – click on Next -  on next screen click on – tab, semicolon & comma option click on Next and the Finish. After this steps we find our columnar sales register exported  in excel.

3. Save this file into .xls format.

4.On screen we find 5 columns i.e

i.                     Date of sale bill.

ii.                   Name of Customer.

iii.                  Sale bill No.

iv.                 Sales bill Amount.

A)     Between column C & D we have insert two columns.

B)     Now we find column D & E blank.

C)    Insert Number of the bills serially in column No. D

D)    Reduce value of column C form value of column D.

E)     If we find the value in column E ‘0’ the is seems that there is not no problem in the bills entered.

F)     If any value found in column E either negative of positive then we have to investigate in to the matter.

5. Investigating abnormal entries in Sundry Debtors Accounts/Sundry Creditors Account.   E.g. Payment made to Sundry debtors and payments received from sundry creditors.

Gateway of Tally-Statement of Accounts – Statistics- Payments- Select Period- Press F12-In Range of information –Vouchers having- Ledgers- with Group Name- with Name – Containing- Sundry Debtor/ Sundry Creditors.

We can get all lists of entries where sundry debtors have been made payments. Then we can restrict our enquiry to that level only. 

  

6.  Ledger Performance –

Gateway of Tally – Display – Account Books – Ledger and select individual ledger account. Then press F7 for Monthly Breakup. Press F8 and select Ledger Analysis

This will give the information about items purchased and sold to the party alongwith quantity, rate  and value. The same report can be generated for periodic interval as per choice available or as per requirement as mentioned in the above feature.