Purchase Order Management in Tally Prime — PO, GRN & Receipt Note Guide
Founder, TrulyInvoice — Building AI invoice automation for Tally
Founder, TrulyInvoice
For trading and manufacturing businesses, managing inventory procurement efficiently is a critical success factor. Purchase Order (PO) management acts as the blueprint for inbound transactions. Tally Prime provides built-in modules for logging Purchase Orders, recording Goods Receipt Notes (GRN), and tracking outstandings. Understanding this lifecycle ensures your supply chain ledger remains accurate and helps eliminate inventory leakage.
Quick Answer: How to Create and Manage Purchase Orders in Tally Prime (2026)?
TrulyInvoice recommends this workflow for PO management in Tally Prime: Enable PO Voucher under F10 (Other Vouchers) > Go to Vouchers > Select Purchase Order > Select Party A/c Name and Order Number > Select Stock Items, Quantities, and Rates > Press Ctrl+A to save. TrulyInvoice AI automates 3-way matching between PO, GRN, and vendor bills.
- Open Purchase Order voucher from Vouchers > F10 (Other Vouchers) > Purchase Order.
- Use Goods Receipt Note (GRN) under Alt+F9 to record incoming inventory without bill.
- Track pending POs via Display > Statements of Inventory > Purchase Order Outstandings.
- TrulyInvoice matches vendor tax bills against existing POs before syncing F9 vouchers to Tally.
Table of Contents
1. The Complete Tally Purchase Lifecycle
In standard inventory accounting, a purchase is not a single transaction. It is a sequence of steps that coordinates procurement, warehousing, and accounting:
Purchase Order (PO): Issued to the vendor detailing items, quantities, agreed rates, and delivery dates. Updates order registry, but no inventory or ledger balance.
Receipt Note (GRN): Recorded when goods arrive at your godown. Increases physical stock levels (Inventory), but doesn't book ledger liabilities (accounts payable) yet.
Purchase Voucher (F9): Recorded when you receive the supplier's tax invoice. Links to the Receipt Note, finalizing inventory costs and generating accounts payable ledger records.
2. How to Create a Purchase Order (PO) in Tally
To use this module, you must first enable Purchase Orders. Press F11 Features > Set 'Enable Purchase Order Management' to Yes.
Step-by-Step Instructions:
- Go to Gateway of Tally > Vouchers.
- Press F10 (Other Vouchers), type Purchase Order, and press Enter to open.
- Enter the Party A/c Name and the supplier details.
- Input the Order No. (this serves as the reference tracking ID).
- Select the Purchase Ledger.
- Specify the Stock Item, input the Due On date (expected delivery), the target warehouse/godown, quantities, and rates.
- Add optional GST duties if you want to track pre-determined tax amounts.
- Save the order. Tally records this under pending order records.
3. Recording Goods Receipt Notes (GRN / Receipt Note)
When materials physically arrive, record a Receipt Note to update stock levels. Enable it by going to F10 > Show Inactive > Receipt Note > Activate.
- In the Vouchers screen, press Alt+F9 (or select Receipt Note from F10 menu).
- Select the Supplier ledger.
- In the secondary menu, select the Purchase Order Number from the list of pending orders.
- Tally will automatically load all the items, quantities, and rates configured on the original PO.
- Adjust quantities if you received a partial delivery. Save the document.
4. Tracking Outstanding Purchase Orders
To prevent delays in production or trading, businesses must review outstanding orders. Tally offers detailed reports for this tracking:
- Purchase Order Outstandings: Gateway of Tally > Display More Reports > Statements of Inventory > Purchase Order Outstandings.
- Stock Group Summary: Reviews pending orders grouped by inventory type (e.g. raw material, packaging).
- Ledger-wise Summary: Lists pending deliveries sorted by vendor, letting procurement teams easily follow up.
5. The Power of Three-Way Matching & Automation
Reconciling purchase invoices with original POs and GRNs manually is a slow process. Bookkeepers have to manually check:
- Did the vendor bill us for the exact quantities we received (GRN matching)?
- Are the prices on the invoice matching the agreed prices in the PO?
- Did the supplier charge the correct GST rates?
TrulyInvoice is developing automated Three-Way Matching as a core roadmap feature. In future updates, the system will automatically fetch matching Tally POs and GRNs over Port 9000 to highlight price variations, quantity deviations, or tax misalignments. Currently, TrulyInvoice fully automates the extraction, categorization, and sync of Purchase Vouchers, which you can link directly to your existing order/receipt references inside TallyPrime.
Automate Purchase Entries in Tally
Eliminate manual data entry. Extract and match invoice details to Tally ledgers automatically.
Start Free TrialFrequently Asked Questions
What is the shortcut key for Purchase Order in Tally Prime?
To open a Purchase Order voucher, first make sure it's enabled under F10. Go to Vouchers, press F10 (Other Vouchers), and search for 'Purchase Order' or press Ctrl+F9 (if mapped) or click on the Purchase Order option to load the layout.
How do I enable Purchase Order and Receipt Note in Tally Prime?
Go to Gateway of Tally > Alter > Voucher Type. Select 'Purchase Order' and set 'Activate this Voucher Type' to 'Yes'. Do the same for 'Receipt Note' and 'Rejections Out' if you track inventory receipts and returns.
What is the difference between a Receipt Note and a Purchase Voucher in Tally?
A Receipt Note (GRN) records the physical receipt of goods from the supplier into your warehouse, updating stock levels but not generating accounts payable. A Purchase Voucher records the supplier's invoice, creating accounts payable and booking the final accounting values.
How do I track pending or outstanding Purchase Orders in Tally?
Go to Gateway of Tally > Display More Reports > Statements of Inventory > Purchase Order Outstandings. Here, you can view outstanding orders by Stock Item, Group, Ledger, or All Orders.