Viewing Interest Calculation Reports in Tally Prime
Interest calculation reports in Tally Prime provide detailed insights into the interest accrued on overdue payments. This feature helps businesses track and manage late payment charges effectively. This guide explains how to view interest calculation reports step by step, with a real-life example.
Step 1: Enable Interest Calculations
Open Tally Prime.
Go to Gateway of Tally.
Navigate to F11: Features.
Under Accounting Features, set Activate Interest Calculation to Yes.
Press Ctrl+A to save the settings.
Step 2: Configure Interest Calculation for Ledgers
Ensure interest calculation is configured for relevant ledgers. For example:
Go to Gateway of Tally.
Select Alter under Ledgers.
Choose the ledger, e.g., Debtors - ABC Traders.
Set Activate Interest Calculation to Yes.
Enter the following details:
Interest Style: Simple.
Rate: 12% per annum.
Calculation Period: From Due Date.
Press Ctrl+A to save.
Step 3: Record Transactions
Ensure there are transactions for which interest is applicable:
Record a sales transaction:
Go to Accounting Vouchers and select Sales Voucher.
Enter details such as ledger, amount, and due date, e.g., ₹50,000 due in 30 days.
Press Ctrl+A to save.
If payment is delayed, interest will accrue based on the configured settings.
Step 4: Access Interest Calculation Reports
Follow these steps to view interest calculation reports:
Go to Gateway of Tally.
Select Display More Reports.
Navigate to Statements of Accounts and choose Interest Calculations.
Select the ledger, e.g., ABC Traders.
View the detailed report showing:
Overdue amount.
Interest rate.
Period of delay.
Interest amount.
Step 5: Analyze and Export Reports
To analyze or share the report:
While viewing the interest calculation report, press Alt+P to print.
To export, press Ctrl+E and choose the desired format, such as Excel or PDF.
Example
Consider a transaction where a company sells goods worth ₹50,000 to ABC Traders with a due date of 30 days. If the payment is delayed by 15 days and the interest rate is 12% per annum, the interest calculation report will show:
Principal Amount: ₹50,000
Interest Rate: 12% per annum
Delay Period: 15 days
Interest Amount: ₹246.58
The report helps the company track and communicate this interest charge to the customer.
Conclusion
Viewing interest calculation reports in Tally Prime is a straightforward process that offers clarity on overdue payments and accrued interest. These reports help businesses manage their receivables effectively and encourage timely payments.