Difference between a Voucher and an Invoice in Tally

Understanding the distinction between a voucher and an invoice is crucial while working with Tally accounting software:

Voucher

In Tally, a voucher is a document that serves as evidence for a transaction. It is used to record financial transactions such as sales, purchases, payments, and receipts. Vouchers provide a systematic way to track and manage financial activities within Tally.

Invoice

On the other hand, an invoice is a commercial document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services. In Tally, an invoice is generated when a sale is made, detailing the items sold and the amount due from the customer.

Key Differences:

• A voucher is used to record transactions within Tally, whereas an invoice is a commercial document issued to customers.
• Vouchers include various types such as payment vouchers, receipt vouchers, and journal vouchers, while an invoice is specific to sales transactions.
• Vouchers are internal documents for recording accounting entries, whereas invoices are external documents for billing customers.

By understanding the variances between vouchers and invoices in Tally, users can effectively manage financial transactions and maintain accurate accounting records.