Credit limit in tally

If we want to set a limit for our debtors for fixed time duration then we use this option. This is set by using “budget & control”.

To set credit limit we follow the following steps:-

A.  First we activate “budget and control” from ‘accounting features’ as follows-

Path- G.O.T. (gateway of tally) --> F11 (Company Features) --> F1 (Accounting features).

B.  Make ledger for our debtors (one or many) by following path and set their credit limit as given below-

i.                   For single ledger--

Path- G.O.T. (gateway of tally) --> a/c info (account info) --> ledgers --> single ledger creation.

ii.                   For multiple ledgers--

First we create ledgers by multiple and after that we set credit limit as follows-

Path- G.O.T. (gateway of tally) --> a/c info (account info) --> ledgers --> multiple ledger creation.

After it set credit limit by following path-

Path- G.O.T. (gateway of tally) --> a/c info (account info) --> ledgers --> multiple Credit limits.

On open it we have a list of ledger groups in which we select “sundry debtors”.

And in it credit limit set as follows-

After set limit if we want to pass any entry greater then its limit of any creditors that entry will not be pass and we get message of over limit entry.

We take an example for it and pass entry of sales to Amit Company more then ₹10000.

It means we can not sold or buy more then its limit by our creditors and debtors in a fix time duration.