Memorandum Vouchers in Tally

Memorandum Vouchers in Tally

In this article you are going to learn how to create and what is the use of:

Ø Memorandum Vouchers

Ø Post Dated Vouchers

Ø A blend of Memorandum and Post Dated Vouchers

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Now, if you have not heard of any of these vouchers before, then don’t worry because they are very easy to understand as well as easy to use for daily accounting purposes.

If you know a little bit of Tally, you will understand both memorandum vouchers and post dated vouchers after Reading the Article just once.

Let’s start with a simple introduction and concepts of each of the vouchers and how they are used in real life.

What are Memorandum Vouchers?

The actual meaning of the word memorandum is a note recording something for future use.

Well, this is what exactly is the memorandum voucher.

A memorandum voucher is a voucher in which you record entries for which you are NOT sure whether they are going to occur.

And if they are going to occur then by HOW much amount.

A main distinguishing feature of memorandum voucher is that it does not affect your ACCOUNTS unless you convert it to a general voucher. 

Some Examples of Memorandum Voucher

Conveyance Expenses – How much?

In your office, you gave Rs.10,000 for Conveyance expenses for a month.

Now, you are NOT sure how much amount will be spent and what will remain at the end of the month.

In this case you will create a Memorandum Voucher for payment of Rs.10,000.

At the end of the month let us assume that the actual expenses were Rs.8,000.

What you will do is convert the memorandum voucher to payment voucher and change the amount from Rs.10,000 to 8,000.

By doing this, along with the modified entry, the books of accounts will also get updated.

Enabling Memorandum and Post Dated Vouchers in Tally

You need to alter some settings in Tally to enable memorandum and post dated vouchers in Tally.

Because without enabling them, you won’t be able to use those vouchers as they won’t be available to you.

Here is the way to enable them in Tally.

Ø From Gateway of Tally, press F11 which is for Features.

Ø Then select Accounting Features from Company Features Menu.

Ø Then look for Budgets and Scenario Management.

Ø Lastly, enable both the options under Budgets and Scenario Management.

Enabling Memorandum and Post Dated Vouchers in Tally

If you have done the above steps correctly, you have successfully enabled memorandum and post dated vouchers in Tally.

Creating Memorandum Voucher in Tally

It is very easy to create a Memorandum Voucher in Tally.

It is almost same as creating any other normal voucher such as payment or receipts vouchers.

I will be passing the entry taking Conveyance Expenses as an example as described above.

So, here are the steps for creating a Memorandum Voucher in Tally.

From Gateway of Tally, go to Accounting Vouchers.

Accounting Vouchers from gateway of Tally

Then select Memos by pressing CTRL+F10 or by just clicking on it which is actually short for Memorandum Voucher.

Memos Option in Tally

As per the example, I’ll be passing entry for Conveyance Expenses for Rs10,000.

Memorandum Voucher in Tally

We have successfully created a Memorandum entry for Conveyance Expenses worth 10,000.

Now let us have a look at the Profit and Loss Account to check its effects

Conveyance Expenses Memorandum Voucher in Tally

You can clearly see that there is nothing in Conveyance Expenses row.

It is because of Memorandum Voucher.

Now we are sure that the Memorandum Voucher is working well and the accounts have not been affected at all.

Tracking Memorandum Vouchers

If memorandum voucher does not affect the books of accounts, how do you know how many memorandum vouchers are created and how to track them?

This is where reporting comes in your way to simplify the accounting process.

You can see the memorandum voucher report which will show you month-wise summary of memorandum vouchers created.

To see the report, from Gateway of Tally, press DXM consecutively or just follow the below steps.

Ø From Gateway of Tally, select Display.

Ø Then select Exception Reports.

Ø In Exception Reports, you can see the Memorandum Vouchers.

Memorandum voucher report in Tally

Converting Memorandum Voucher to normal voucher is simple and easy.

Just above in the post, we have created a Memorandum Voucher of Rs.10,000 for Conveyance Expenses.

Now, I’ll convert that into normal voucher i.e. payment voucher but for 8,000 only because that is the actual expense.

That is what is the use of Memorandum Voucher. We are not sure of what the actual will be.

I assume you are in the Memorandum Vouchers in the Exception Reports as we have discussed just above.

Let us have look at it of how it can be done step by step.

Select the Memorandum Voucher you want to convert. In our case it is Conveyance Expenses.

Selecting Memorandum Voucher for converting

After selecting the Memorandum Voucher from the list, you will see the Memorandum Voucher like this in the image below.

Memorandum Voucher in Tally

Now we will edit it to Rs.8,000 and convert it to Payment Voucher.

For that just write 8,000 instead of 10,000 and press F5 which is the shortcut for Payment Voucher in Tally.

Converting Memorandum Voucher into a Payment Voucher

Now, just press Enter to save and you have successfully converted a Memorandum Voucher into a normal Payment Voucher.

Let’s have a look at the Profit and Loss Account after the conversion.

Converted Memo Voucher to Payment Voucher 

See, there are Conveyance Expenses of Rs.8,000 in the Profit and Loss account as we have now converted it to a normal payments voucher.