Ledger for intercompany related party

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Sanjib Mishra

Sanjib Mishra (Querist)

21 March 2024 Dear,

How to make related party in tally in company A and B.

regards

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

09 July 2024 To manage related party transactions between two companies (Company A and Company B) in Tally, you need to follow these steps to create and track such transactions effectively. Here's a detailed guide on how to do this:

### Steps to Create and Track Related Party Transactions in Tally

1. **Create Ledgers for Both Companies in Tally:**
- You need to create ledger accounts for Company A in the books of Company B and vice versa.

#### In Company A's Books:
1. Open Tally and select Company A.
2. Go to `Gateway of Tally` > `Accounts Info` > `Ledgers` > `Create`.
3. Create a ledger for Company B.
- **Name**: Company B
- **Under**: Sundry Creditors (or appropriate group)
- **Maintain balances bill-by-bill**: Yes
- **Inventory values are affected**: No
4. Save the ledger.

#### In Company B's Books:
1. Open Tally and select Company B.
2. Go to `Gateway of Tally` > `Accounts Info` > `Ledgers` > `Create`.
3. Create a ledger for Company A.
- **Name**: Company A
- **Under**: Sundry Debtors (or appropriate group)
- **Maintain balances bill-by-bill**: Yes
- **Inventory values are affected**: No
4. Save the ledger.

### Record Transactions

1. **Sales from Company A to Company B:**
- In Company A's Tally, go to `Gateway of Tally` > `Accounting Vouchers` > `F8: Sales`.
- Select the ledger created for Company B.
- Enter the sales details (items, quantity, rate, etc.).
- Save the voucher.

2. **Purchases in Company B from Company A:**
- In Company B's Tally, go to `Gateway of Tally` > `Accounting Vouchers` > `F9: Purchase`.
- Select the ledger created for Company A.
- Enter the purchase details (items, quantity, rate, etc.).
- Save the voucher.

### Set Up Tracking for Related Party Transactions

1. **Define Related Party:**
- Tally doesn't have a direct "related party" feature, but you can manage and track transactions by using ledger groups and appropriate naming conventions.

2. **Using Cost Centers or Cost Categories (if applicable):**
- You can use cost centers or cost categories to track related party transactions separately.
- Enable `Cost Centers` in `F11: Features` > `Accounting Features`.
- Create cost centers for Company A and Company B under `Accounts Info` > `Cost Centers`.

### Reports and Analysis

1. **Viewing Transactions:**
- To view all transactions with Company B in Company A's books, go to `Display` > `Account Books` > `Ledger`.
- Select Company B's ledger to see all related transactions.

2. **Outstanding Reports:**
- To see outstanding amounts, go to `Gateway of Tally` > `Display` > `Statement of Accounts` > `Outstanding`.
- Choose `Sundry Debtors` or `Sundry Creditors` as appropriate.

3. **Related Party Transaction Report:**
- While Tally doesn't provide a built-in related party transaction report, you can manually review ledgers, outstanding reports, and cost center reports to identify related party transactions.

### Summary

- **Create Ledgers**: For Company A in Company B's books and vice versa.
- **Record Transactions**: Use sales vouchers in Company A and purchase vouchers in Company B.
- **Track Transactions**: Use ledger and outstanding reports, and consider using cost centers for more detailed tracking.
- **Review**: Regularly review reports to ensure all related party transactions are accurately recorded and tracked.

By following these steps, you can effectively manage and track related party transactions between Company A and Company B in Tally.

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