Credit Limit and Interest Calculation Practical Assignment in Tally

Credit Limit and Interest Calculation 

Practical Assignment

1.   Introduction

 

Read the below-given business scenario and implement it in TallyPrime by creating a company for Kumar Stores

 

1.1.           Business Scenario I

Kumar Stores was facing few issues in tracking the outstanding of its Clients. Some customers were buying regularly but not paying the dues on time and there was no control during invoicing which was leading to huge outstanding.

Kumar Stores then decided to implement the control system for billing:

1.      Allocate the credit limit for each customer

2.      Warning the data entry operator in case any bills are overdue.

3.      Should not allow the data entry person if the bill amount crosses the credit limit.

Set the credit limit for the customer Rs. 1,00,000

Record 3 sales transactions on different dates and specify the credit days as 10 days.

Date	Amount	Due date
01-Apr-2019	23,000	11-Apr-2019
05-Apr-2019	33,000	15-Apr-2019
15-Apr-2019	35,000	25-Apr-2019

 

Record 4^th sales transactions, ensure total outstanding amount crosses the limit, check the behaviour of Tally during sales entry.

 

1.2.           Business Scenario II

Interest calculation

Despite Kumar Stores giving 10 days of credit for their credit customers, few customers not paying on time. Hence, it has now decided to enforce the collection of interest on the overdue amount to impose a penalty for late payments and systematize the collection from their customers.

Set 1% as interest percentage per calendar month and it is charged if a customer fails to pay within due date, interest is on a total number of days after the due date.

Set interest calculation for customers and record Sales Invoices with 10 days credit period.  Then see interest report extending the period out of due dates.

Raise interest accrual voucher for below sales invoice and receive total amount i.e., Invoice amount plus Interest amount from the customer.

Date	Amount	Due date	Amount Received Date	No of Days delayed
01-Apr-2019	23,000	11-Apr-2019	15-Apr-2019	4 Days

 

2.   outcome

 

Below are the outcomes after setting up multiple addresses as per business scenarios, this is for your reference to ensure that you have done it properly.

 

2.1.           credit limit control in invoice

2.2.           interest calculation report

 

2.3.           customer ledger report with interest and payment received