Setting up Credit Limit for the party ledgers in Tally.ERP 9 is very simple and effortless. All it takes is enabling the option and
setting the limit on the party ledger
creation or alteration screen.
· Go to Gateway of Tally > F11: Accounting Features
· Under ‘Budgets and Scenario Management’, set ‘Yes’ to ‘Maintain
Budgets and Controls’
To set Credit
Limit for a Single Ledger:
· Go to Gateway of Tally > Accounts Info.
> Ledgers > Select ‘Alter’ under ‘Single
· Select the required party ledger from the ‘List of Ledgers’
Set the ‘Default Credit Period’ and ‘Credit Limit’ amount as shown:
Note: You can also specify the Credit Limit
and Credit Period at the time of ledger creation or alteration.
To set Credit
Limit for multiple party ledgers:
· Go to Gateway of Tally > Accounts Info. > Ledgers > Credit Limits
· Select the required ‘Group’ in
‘List of Groups’ like Sundry Debtors, Sundry Creditors
· On ‘Multi Ledger Limit Alteration’ screen, set the ‘Credit Limit’ for the ledgers as required
· Accept the screen
To demonstrate how Credit Limit effects the transaction, let’s try to pass a Sales Invoice using a ledger called ‘Modern Timbers’ (Sundry Debtors) for an amount of more than `1,00,000 which is the
specified credit limit for this ledger. Whenever the invoice is raised beyond this limit, Tally.ERP 9 will
display a prompt message saying ’Credit Limit of the selected party exceeded’
The current balance
and the credit limit of the Ledger accounts are displayed in the Order and Invoice entry vouchers (Sales and Purchase) and these show the available limits. In case, you need to
pass the transaction beyond the Credit
Limit, you can alter the credit limit if you have the right permission.
Hence, with Tally.ERP 9, you can easily set credit limits for your party ledgers and take control of your business’s receivables and payables. This in turn reduces risks and improves collection for your business.