Branch Accounting
Tally.ERP 9 provides you a seamless way of handling branch accounts. Transactions between branches or offices are accounted by debiting the receiving branches accounts and crediting the branches providing the service/products. These accounting entries result in a nil effect on the HO’s account books when the branch accounts are consolidated. If there is a difference in the account, it is reconciled through a process of branch reconciliation.
For example, create two branch ledgers, Branch A and Branch B. You may account the transfer of funds from Branch A to Branch B in the books of accounts, by debiting Branch B which in turn, credits Branch A in its books. There is no net effect on the combined books, when the accounts of the two branches are consolidated.
Branch Account Ledgers are required to be created under the Branch / Divisions Group.
