Learn how to use Bill-wise Details in TallyPrime to manage customer payments, supplier outstanding balances and advance transactions. Understand New Reference, Against Reference and Advance with practical examples, step-by-step instructions and accounting tips.
How to Use Bill-wise Details in TallyPrime: Against Reference, New Reference and Advance Explained
Managing customer payments and supplier outstanding balances is an important part of accounting. When a business makes multiple sales or purchases on credit, simply recording the total amount is not enough. You also need to know which invoice has been paid, which amount is still outstanding and whether any advance payment has been received.
This is where Bill-wise Details in TallyPrime become useful.
Bill-wise accounting helps you track individual invoices, customer payments, supplier payments, advances and pending balances. Instead of checking multiple vouchers manually, you can identify the status of each bill directly from the outstanding reports.
TallyPrime provides three commonly used bill reference types: Against Reference, New Reference and Advance. Each option serves a different purpose, and choosing the correct one helps maintain accurate accounts.
In this guide, you will learn how these three options work, when to use them and how to record practical transactions in TallyPrime.
What Are Bill-wise Details in TallyPrime?
Bill-wise Details is an accounting feature in TallyPrime that allows businesses to maintain outstanding balances against individual invoices.
For example, suppose you sell goods worth ₹50,000 to a customer on credit. Instead of maintaining only a total customer balance, you can create a separate reference for that invoice.
Later, when the customer pays ₹20,000, you can adjust the payment against that particular bill. TallyPrime will then show the remaining ₹30,000 as outstanding.
This feature is especially useful for businesses that:
Sell goods or services on credit.
Purchase inventory from suppliers on credit.
Receive payments in multiple instalments.
Pay suppliers against different invoices.
Collect advance payments from customers.
Maintain accurate debtor and creditor records.
With bill-wise tracking, you can easily identify overdue invoices and understand exactly how much each customer or supplier owes.
Why Is Bill-wise Accounting Important?
Without bill-wise details, TallyPrime may show the total outstanding amount against a customer or supplier, but identifying the individual unpaid invoices can become difficult.
Consider this example:
A customer purchases goods on three different dates:
Invoice | Invoice Amount | Payment Received |
|---|---|---|
INV-001 | ₹10,000 | ₹10,000 |
INV-002 | ₹15,000 | ₹5,000 |
INV-003 | ₹20,000 | ₹0 |
Total | ₹45,000 | ₹15,000 |
The customer still owes ₹30,000.
With bill-wise details, you can see that INV-001 is fully paid, INV-002 is partially paid and INV-003 remains completely unpaid.
This makes payment follow-ups, account reconciliation and financial reporting much easier.
How to Enable Bill-wise Details in TallyPrime
Before recording bill-wise transactions, you need to enable the required feature in your company.
Follow these steps:
Open your company in TallyPrime.
Press F11 (Features).
Locate the accounting features.
Enable Maintain Bill-wise Details.
Save the configuration.
Once enabled, TallyPrime allows you to maintain bill references while recording transactions for customers and suppliers.
Important: You should also enable the bill-wise tracking option in the relevant party ledger where required.
Understanding the Three Bill-wise Reference Types
When you record a receipt or payment against a party ledger, TallyPrime can ask you to select a bill reference type.
The three important options are:
Reference Type | Meaning | When to Use |
|---|---|---|
New Reference | Creates a new outstanding bill reference | When recording a new credit sale or purchase |
Against Reference | Adjusts an existing bill reference | When receiving payment from a customer or paying a supplier against an existing invoice |
Advance | Records money received or paid before the related invoice is created | When receiving an advance from a customer or paying an advance to a supplier |
Let's understand each option with practical examples.
New Reference: Creating a New Bill
The New Reference option is used when you want to create a new bill reference for a credit transaction.
For example, suppose your business sells goods worth ₹25,000 to ABC Traders on credit. You want to track this invoice separately so that you can adjust future payments against it.
You can create a new reference while recording the sales transaction.
Practical Example:
Customer: ABC Traders
Invoice Number: INV-101
Invoice Date: 15 November 2026
Sales Amount: ₹25,000
Payment Status: Outstanding
Steps to Record a New Reference
Open the Sales Voucher by pressing F8.
Select the customer ledger.
Enter the sales details.
Add the appropriate sales ledger and amount.
When the bill-wise allocation screen appears, select New Reference.
Enter the reference name, such as INV-101.
Enter the amount of ₹25,000.
Accept and save the voucher.
Your new invoice reference is now recorded in the customer's account.
The outstanding report will show ₹25,000 against INV-101 until the payment is adjusted.
When Should You Use New Reference?
Use this option when:
Recording a new credit sales invoice.
Recording a new credit purchase invoice.
Creating a separate reference for an outstanding transaction.
Maintaining invoice-wise records for future payment adjustments.
Against Reference: Adjusting an Existing Bill
The Against Reference option is used when you receive or make a payment against an invoice that has already been recorded in TallyPrime.
For example, ABC Traders previously purchased goods worth ₹25,000 against invoice INV-101. Now the customer pays ₹15,000.
You should adjust this payment against the existing invoice rather than creating a completely new reference.
Practical Example:
Original Invoice: INV-101
Invoice Amount: ₹25,000
Payment Received: ₹15,000
Remaining Outstanding: ₹10,000
Steps to Record Payment Against Reference
Open the Receipt Voucher by pressing F6.
Select the bank or cash ledger.
Select ABC Traders as the party ledger.
Enter the received amount of ₹15,000.
Open the bill-wise allocation screen.
Select Against Reference.
Choose the existing invoice INV-101.
Enter ₹15,000 as the amount adjusted against the invoice.
Accept and save the voucher.
After saving the transaction, TallyPrime will update the outstanding amount.
Particulars | Amount |
|---|---|
Original Invoice | ₹25,000 |
Payment Received | ₹15,000 |
Remaining Balance | ₹10,000 |
The invoice will remain partially outstanding until the remaining ₹10,000 is received.
When Should You Use Against Reference?
Use this option when:
Receiving payment against an existing customer invoice.
Making payment against an existing supplier invoice.
Recording partial payments.
Settling multiple outstanding invoices.
Adjusting pending balances against specific bill references.
Advance: Recording Payments Before an Invoice
The Advance option is used when money is received or paid before the actual invoice or bill is created.
For example, a customer places an order worth ₹40,000 and pays ₹10,000 in advance. You have received the money, but the final sales invoice has not yet been generated.
In this situation, you should record the amount as an advance.
Practical Example:
Customer: XYZ Enterprises
Order Value: ₹40,000
Advance Received: ₹10,000
Remaining Amount: ₹30,000
Steps to Record Customer Advance
Open the Receipt Voucher using F6.
Select the Cash or Bank ledger.
Select XYZ Enterprises as the party ledger.
Enter the advance amount of ₹10,000.
Open the bill-wise allocation screen.
Select Advance.
Enter a suitable reference name, such as ADV-001.
Enter ₹10,000.
Accept and save the voucher.
The advance will now appear in the customer's account and can be adjusted against the actual invoice later.
How to Adjust Advance Against a Sales Invoice
Suppose you create a sales invoice of ₹40,000 after receiving the advance of ₹10,000.
You can adjust the advance against the invoice using the appropriate bill-wise allocation.
The calculation will be:
Particulars | Amount |
|---|---|
Total Sales Invoice | ₹40,000 |
Advance Received | ₹10,000 |
Remaining Amount Receivable | ₹30,000 |
This helps ensure that the customer does not have to pay the advance amount again.
When Should You Use Advance?
Use this option when:
Receiving money before delivering goods.
Collecting advance payment for services.
Paying suppliers before receiving goods.
Making advance payments for future purchases.
Recording customer deposits against future orders.
Difference Between New Reference, Against Reference and Advance
Although all three options are available under bill-wise details, their accounting purposes are different.
The following table makes the distinction easier to understand.
Feature | New Reference | Against Reference | Advance |
|---|---|---|---|
Main Purpose | Create a new bill | Adjust an existing bill | Record an advance |
Creates a Bill Reference | Yes | No, selects an existing reference | Yes, creates an advance reference |
Used For | Credit sales and purchases | Receipts and payments against existing bills | Money received or paid before invoicing |
Outstanding Tracking | New outstanding amount | Reduces existing outstanding | Tracks advance balance |
Example | New invoice of ₹25,000 | Receive ₹15,000 against an invoice | Receive ₹10,000 before invoicing |
A simple way to remember these options:
New Reference: Create a new bill.
Against Reference: Settle an existing bill.
Advance: Record money before the bill is created.
Complete Practical Example: Customer Bill-wise Accounting
Let's understand how all three options work together in a real business situation.
Suppose ABC Traders is your customer.
You complete the following transactions:
1 November: Sell goods worth ₹30,000 on credit.
5 November: Receive ₹10,000 as advance for another order.
10 November: Receive ₹15,000 against the first invoice.
15 November: Create another sales invoice worth ₹20,000.
Here is how the transactions should be recorded:
Date | Transaction | Reference Type | Amount |
|---|---|---|---|
1 Nov | Credit Sales | New Reference | ₹30,000 |
5 Nov | Advance Received | Advance | ₹10,000 |
10 Nov | Payment Received | Against Reference | ₹15,000 |
15 Nov | New Credit Sales | New Reference | ₹20,000 |
The outstanding position will be:
Particulars | Amount |
|---|---|
First Invoice | ₹30,000 |
Less: Payment Received | ₹15,000 |
First Invoice Outstanding | ₹15,000 |
Second Invoice | ₹20,000 |
Total Invoice Outstanding | ₹35,000 |
Less: Unadjusted Advance | ₹10,000 |
Net Amount Receivable | ₹25,000 |
The advance should remain separately identifiable until it is adjusted against the appropriate invoice.
This example demonstrates how bill-wise accounting helps you track different transactions without mixing invoice payments and advances.
How to Check Bill-wise Outstanding Reports in TallyPrime
After recording bill-wise transactions, you can check pending customer and supplier balances through the outstanding reports.
Follow these steps:
Open the Gateway of Tally.
Go to Display More Reports.
Select Statement of Accounts.
Open Outstanding.
Select Receivables to check customer outstanding bills.
Select Payables to check supplier outstanding bills.
Open the relevant party ledger to view individual bill references.
You can use these reports to identify:
Unpaid customer invoices.
Pending supplier bills.
Partially settled invoices.
Unadjusted advances.
Total outstanding amounts.
Depending on your TallyPrime version and report configuration, you may also be able to use ageing options to identify overdue balances.
Common Mistakes to Avoid While Using Bill-wise Details
Even though bill-wise accounting is straightforward, incorrect reference selection can create problems in outstanding reports.
Here are some common mistakes to watch out for.
Selecting New Reference Instead of Against Reference
If you receive payment against an existing invoice but select New Reference, TallyPrime may create another outstanding reference instead of reducing the original bill.
Recording an Advance as a Regular Payment
If money is received before an invoice is created, recording it against an unrelated bill can result in incorrect outstanding balances.
Entering Incorrect Bill Numbers
Always use meaningful and consistent invoice reference names. Incorrect references make it difficult to identify transactions later.
Ignoring Partial Payments
When a customer pays only part of an invoice, adjust the exact amount against the relevant reference. Do not mark the entire invoice as settled.
Not Adjusting Advances Against Invoices
An advance that remains unadjusted can continue appearing separately in outstanding reports. Make sure it is properly adjusted when the related invoice is created.
Best Practices for Managing Bill-wise Details
For accurate accounting, follow these practical recommendations:
Use the actual invoice number as the bill reference wherever possible.
Record customer and supplier advances separately.
Always select Against Reference when settling an existing invoice.
Check outstanding reports regularly.
Review old pending invoices and follow up with customers.
Adjust advances against the correct invoices.
Avoid creating duplicate references for the same bill.
Reconcile customer and supplier balances periodically.
These simple practices can help maintain clean accounting records and reduce confusion during payment follow-ups.
Frequently Asked Questions (FAQs)
1. What is New Reference in TallyPrime?
New Reference is used to create a new bill reference when recording a credit sales or purchase transaction.
2. What is Against Reference in TallyPrime?
Against Reference is used to adjust a payment or receipt against an existing outstanding invoice.
3. What is the Advance option in TallyPrime?
Advance is used to record money received from customers or paid to suppliers before the related invoice or bill is created.
4. Can I record partial payments using Against Reference?
Yes. You can adjust a partial payment against an existing invoice. The remaining unpaid amount will continue to appear as outstanding.
5. How can I check customer outstanding bills in TallyPrime?
Open Gateway of Tally, navigate to Display More Reports, select Statement of Accounts and open Outstanding Receivables.
Final Words
Bill-wise Details is an essential feature for businesses that regularly deal with credit sales, credit purchases, customer advances and supplier payments.
Understanding the difference between New Reference, Against Reference and Advance makes it easier to record transactions correctly and maintain accurate outstanding balances.
Remember three simple rules: use New Reference to create a bill, Against Reference to adjust an existing bill and Advance to record money received or paid before invoicing.
Once you start using these options consistently, tracking customer payments and supplier dues in TallyPrime becomes much more organised and manageable.
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