If you do not set credit limits, you can still make invoices and give credit periods at the time of invoicing. However, that may not be desirable, especially in a decentralized environment. Therefore, to minimise errors during invoicing, you might prefer to set these important terms beforehand.

To set credit limits:

Go to F11 Features > Accounting Features > Set Maintain Budgets and Controls to Yes

Go to Gateway of Tally> Accounts Info> Ledgers> Credit Limits (under Multiple Ledgers)

Credit Limits can be specified for any account falling under the groups Sundry Debtors and Sundry Creditors. Accounts under Sundry Creditors are permitted because there can be a two-way trade with a party even if it is classified as a creditor or debtor. Classification is done on the basis of the major role.

More:

Setting Credit Limits

Effect of setting credit limits

Exceeding Credit Limits

Displaying Multiple Ledgers

Go to Gateway of Tally > Accounts Info. > Ledgers > Display (under Multiple Ledgers)

Select All Items from the List of Groups to view the details of all the Ledgers in Tally. If you want to view the details of all the Ledgers created under a Group select the Group from the List of Groups. The Multiple Ledger Display screen is displayed.

Altering Ledgers in Multiple Mode

Go to Gateway of Tally > Accounts Info. > Ledgers > Alter (under Multiple Ledgers)

Displaying and Altering Ledgers can be done in Single mode and Multiple mode. The Multiple mode allows you to display and alter multiple Ledgers at a time.

Displaying and Altering a Single Ledger

You can view the details of the Ledger Masters in Display mode. Display does not permit any modification. However you can make changes to Ledger Masters in Alter mode.

Displaying a Single Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Display (under Single Ledger).

Displaying and Altering Ledgers

Displaying and Altering Ledgers can be done in Single mode and Multiple mode. The Multiple mode allows you to display and alter multiple Ledgers at a time.

Displaying and Altering a Single Ledger

You can view the details of the Ledger Masters in Display mode. Display does not permit any modification. However you can make changes to Ledger Masters in Alter mode.

Displaying a Single Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Display (under Single Ledger).

This is viewed when you press F10: Chg Sort when the ledger is in the alteration mode.

If this is done, it remains so till you deactivate it by pressing F10: Skip Sort. The topic has been discussed under the chapter "Groups" under Advanced Usage. The default setting is 1000 for all ledgers.

Please note that the index is relative to other ledgers and groups within a parent group. Hence, the position of a ledger may be changed within the Group, to which it belongs, by changing the number 1000.

The Effective Date for Reconciliation is given for accounts falling under the Bank Accounts Group (or Bank OCC a/c).

By default it is the books beginning date.

This is the date from which you can reconcile your bank account in your books with the bank statements. Normally, it would be the books beginning date.

Closing stock values have to be specified when accounts and inventory are not integrated. Tally allows you to specify closing stock values even if your books are integrated. It would simply ignore the specified figure so long as you maintain the integration. If and when you select to separate the books, the specified values would automatically be considered.

To enter the closing stock as on a specific date, you must alter the ledger account. Simply follow the ledger alteration procedure or go from the Balance Sheet via Current Assets.

The Group Interest Calculation statement is a list of all accounts and sub-groups belonging to the selected group that displays the current balance in each account or sub-group and the total interest.

Go to Gateway of Tally> Display > Statements of Accounts > Interest Calculations > Group

Select a Group, Eg. Loans (Liability)

The Cr in the interest amount should not be confused to mean an Income. It only means that it is payable and is a liability.

You can calculate interest on each invoice for the period it is outstanding, wholly or partly. Transaction by transaction or bill-by-bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors. Bill-wise details should be active for the company and the party.

The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the transaction. Press F1: Detailed to see the calculation.