Loans and advances or sundry debtor

But in the end against reference which auto populates data or direct entries on account needs a search for last invoice number to renumber new invoice. #refernce is a lengthy process

Originally posted by : RAJA P M
	Originally posted by : Yasaswi Gomes new @ Raja PM your correct! Some companies get tired to do against reference cause employees will be scared to remember the references. I also know the complete receivables process eg. Sales order- new reference, delivery note against reference, sales voucher against ref, and receipt against reference. But how is it possible to remember a reference with too many orders. So some choose against account.that is also giving outstanding balances.  That's work. Staffs must be follow the references. Then Only it's going to smoothy with Suppliers and Customers. Also in the finalization of Accounts.

@ Raja PM your consummate in tally! I worked on both the modes and I'm just passing on some tricks that everything is configuration. I don't have access to f12 on tally prime! I have access to everything and just wondering why? But what ever I need I get it done as per transactions. Nice knowing an ace like you.

I also know know manufacturing vouchers!! Does anyone know that? Chuckes

Originally posted by : RAJA P M
	Originally posted by : Yasaswi Gomes new Oracle, sap forms vs tally, quick books ets. The functionality could be implemented. To me a big software and a small software mean the same cause everything runs by voucher number and date. Any controversies? means...?

Original Oracle University passed EBS at above 80%. R11 financials certified from an institute. Recently FICO! you ask me what is a transaction like in tally vs Oracle forms vs sap forms vs exact online forms. You answer me from your understanding what is a form ERP vs interactive tally, QuickBooks etps?

Your cool! You work on AS! I work on Indas and IFRS minus insurance contracts, financial instruments. But it doesn't matter cause the other auditing firm assured me 45k job just if I know the related party disclosures. I don't have a habit of by hearting so no thanks. Ppl can always compete with me here perpetually. Forms bro is different ERP than tally. It monotonous forms and tally is wilder. Say, a big firm has 10000 transactions per year and tally or small software has the same functionality. Convenience store is what I'm looking for

The grocery store guy would be classified as a sundry debtor because you have given them money in advance for services (groceries) that will be provided over a specific period. The term "loans and advances" typically refers to financial transactions where money is lent or advanced with an expectation of repayment, which doesn't apply to this situation.

In this scenario, the grocery store guy would be considered a sundry debtor.

Nice inversion or contrasting and I don't have any time to condrict old answers not unless there is a gaap principle.good night

@ Raja P M sorry. Another issue I just now found out is, I've adjusted amounts in JV because what my company pays advance is for expenditure which is nil rated. So I've created JV in tally but it must be Purchased account

Dr. Advance

Cr. Bank/Cash

And reconcile

Dr. Grocery store 

Cr. Advance

Purchases in acca has a philosophy, it must be offset with closing inventory. Nil rated  means no use to be purchases apart from the setting off thing. 

Dr. Purchases 

Cr. Creditor 

Or 

Dr. Creditor 

Cr. Advance

But ppl think it could affect ratios. How? Direct expenses are recognised before gross profit and trading account. IFRS classified it as Operating profit element. This is ERP mess up

Another example: I own a company which has 20 trucks. I pay advance payment to fuel station and drivers recharge fuel and give me the bill. If purchases are set off against inventory, is a direct cost like fuel an inventory? An asset is a resource controlled by the enterprise as a result of past events from which future economic benefits are expected to flow to the enterprise. The enterprise doesn't control the fuel station. 

Read more at: https://www.caclubindia.com/forum/rent-advance-gpay-from-personal-account-600973.asp?offset=1

Regarding advance payment example by tally

Dr. Loans and advances or current assets

Cr. Bank.

Salary is not even an advance because people get salary on 15th instead of first. Even if they consider it as an advance, 

Dr. Salary expense

Cr. Loans and advances account. 

This cannot be booked under purchases because cost of labour is included into closing stock. 

Next, advance fuel payment. This is also included into closing stock. 

Dr. Advance fuel payment asset

Cr. Bank

When the driver uses the fuel cards/tokens, 

Dr. Fuel expense 

Cr. Advance fuel payment

An expense is a purchase means margin ratios might get impacted. 

Actually these are all costing profit and loss statement transactions 

Supposing, machinery maintenance is 100 rupees

Profits due to purchases reduce by 100, closing inventory offsets that loss. Bank reduces and inventory increase. Since the fuel is operating expense, it won't impact gross margin. Thus it can be reported anywhere in tally