Bill-wise payables tracking in Tally means maintaining your supplier ledgers bill by bill, so every purchase invoice carries its own reference and due date and every payment you make is tied to the specific bill it settles. You switch it on by enabling "Maintain balances bill-by-bill" on the supplier ledger, then choosing New Reference when you book a purchase and Against Reference when you pay. Without it, a supplier ledger shows only a running balance, and you cannot tell a 40-day-old unpaid bill from last week's fresh one, which makes supplier reconciliation an argument over a lump sum. With it on, the ledger tells the truth: three bills open, one of them old, two current, each with its own due date. For a distributor this is what protects a cash discount, because you can pay the bill inside its window, and what makes the principal's statement reconcile against yours entry for entry. Tally stays the book of record; bill-wise tracking makes the payable side as readable as the receivable side you already track.
Key Highlights
- Bill-wise payables tracking ties every payment to the specific purchase bill it settles, so the supplier ledger shows individual open bills with due dates instead of one running balance
- Most distributors run bill-wise on sales but not on purchases, which is the gap that makes supplier reconciliation an argument
- It uses Tally's four reference types (New Reference to open a bill, Against Reference to settle it), and Takkada carries the bill-wise payable position onto the phone
In This Article
- The gap: bill-wise on sales, not on purchases
- How to switch it on for supplier ledgers
- The reference types, on the purchase side
- What clean bill-wise payables buy you
- Carrying it to the phone
- Frequently Asked Questions
The Gap: Bill-Wise on Sales, Not on Purchases
Almost every distributor turns on bill-wise tracking for his sales ledgers, because that is how he chases retailers: which invoice is open, how old, due when. Far fewer turn it on for their purchase ledgers. The result is a lopsided book, where the receivable side is tracked to the invoice and the payable side is one running balance per supplier.
That gap costs money quietly. When a supplier ledger shows only a lump figure, you cannot tell an old bill from a fresh one, you cannot see which bill's discount window is closing, and you cannot reconcile against the principal's statement without a fight. The mechanics of tracking outstanding by individual bill are the same on both sides; they are laid out in bill-by-bill against reference in Tally. Bill-wise payables is simply pointing that same discipline at who you buy from.
How to Switch It On for Supplier Ledgers
The setting sits on the ledger. Open the supplier ledger under Sundry Creditors, and set "Maintain balances bill-by-bill" to Yes. From that point, every time you book a purchase against that supplier, Tally asks for a bill reference and a due date, and every time you pay, it asks which bill you are settling.
Two things to get right at setup. First, set the credit period when you book each purchase, or give an explicit due date, so Tally can age the bill and flag its window. Second, if a supplier ledger already has an opening balance, break that opening into its individual bills as references, otherwise the old amount sits as one unreferenced lump that never reconciles cleanly. Once this is on, the ledger starts producing a real bills payable schedule with a date against each open bill.
The Reference Types, on the Purchase Side
Tally asks one question every time money or a bill moves: what kind of reference is this? There are four answers, and on the payable side they work like this.
| Reference type | On the purchase side | Example |
|---|---|---|
| New Reference | Opens a payable bill when you book a purchase | Book invoice #A-441 for ₹1,80,000, due in 30 days |
| Against Reference | Settles a payment against a specific open bill | Pay ₹1,80,000, tag it Against #A-441; the bill closes |
| Advance | Money paid to a supplier before a bill exists | Advance ₹50,000 to a principal before goods |
| On Account | A payment you cannot yet tie to a bill | Rare; clear it to Against Reference once known |
The discipline is simple and it is the whole job: New Reference creates the payable, Against Reference clears it. Reaching for On Account because it is faster leaves every original bill open and overstates what you owe. Advances left un-adjusted mean you show a supplier credit and open bills at the same time. How to keep advances and adjustments straight is covered in advance received vs bill adjustment in Tally.
What Clean Bill-Wise Payables Buy You
Three concrete wins come from tracking purchases bill by bill. First, cash discounts. When each bill carries its due date, you can pay inside the principal's discount window instead of missing it because the payable was a blur. On ₹5 crore of annual purchases, discounts protected this way add real margin.
Second, painless supplier reconciliation. When the principal sends his statement, a bill-wise payable ledger lines up against it entry for entry, and the two of you agree in minutes instead of arguing over a lump sum. Third, a real due-date schedule for cash planning, so you know that ₹4 lakh of bills fall due this week before you commit that cash to a fresh order. Sorted by age, that same data becomes the accounts payable ageing report, which turns the payable into a timeline you can act on.
Carrying It to the Phone
Bill-wise payables tracking lives in the Tally desktop, and the moments you need it are away from it: a supplier's man asking "kaunsa bill baaki hai," a call about a fresh order, planning the week's payments on the drive home. On the desktop that means waiting for the accountant.
Takkada reads your bill-wise purchase ledgers from Tally and shows the payable position on the phone, supplier by supplier, each open bill with its due date, live, because it keeps a two-way sync with Tally rather than a separate copy. You answer "kaunsa bill" with a bill number instead of a guess, and you pay the right bill inside its window from wherever you are. Tally stays the system of record; the phone just makes the bill-wise payable readable in the field.
Takkada is a Tally-integrated receivables and auto-reconciliation app for Indian distributors, with 0% MDR UPI collection and WhatsApp dispatch.
Frequently Asked Questions
Q: What is bill-wise payable tracking in Tally?
A: Bill-wise payable tracking maintains your supplier ledgers bill by bill, so each purchase invoice has its own reference and due date and each payment is tied to the specific bill it settles. You enable it with "Maintain balances bill-by-bill" on the supplier ledger. It turns a running creditor balance into a readable schedule of individual open bills.
Q: How do I enable bill-wise tracking for purchases in Tally?
A: Open the supplier ledger under Sundry Creditors and set "Maintain balances bill-by-bill" to Yes. When you book a purchase, use New Reference and set a credit period or due date; when you pay, use Against Reference and pick the bill you are settling. If the ledger has an opening balance, break it into individual bill references.
Q: What is the difference between New Reference and Against Reference for payables?
A: New Reference opens a fresh payable bill, which happens when you book a purchase on credit. Against Reference settles a payment against a bill that already exists. New Reference creates what you owe; Against Reference clears it. Using them correctly keeps the supplier ledger showing exactly which bills are still open.
Q: Why should a distributor track payables bill by bill?
A: Without it, a supplier ledger shows only a running balance, so you cannot tell an old bill from a fresh one, cannot see which discount window is closing, and cannot reconcile against the principal's statement cleanly. With it, every bill has a due date, every payment ties to a bill, and supplier reconciliation becomes a line-by-line match.
Q: Can I see my bill-wise payables on my phone?
A: Yes. Takkada reads your bill-wise purchase ledgers from Tally and shows each supplier's open bills with due dates on mobile. Because it stays in two-way sync with Tally, the position matches the office desktop, so you can pay the right bill inside its window and answer a supplier with a bill number from the field.
Takkada is a Tally-integrated receivables and auto-reconciliation app for Indian distributors, with 0% MDR UPI collection and WhatsApp dispatch. Book a free demo.