A transaction in Tally Prime is any business activity involving money or goods that you record in the software. It helps keep accurate accounts, inventory, and reports.

Examples of Transactions

• Sales
• Purchases
• Payments
• Receipts
• Journal entries
• Contra entries (cash ↔ bank)
• Credit notes / Debit notes

Types of Transactions in Tally Prime

1. Accounting Transactions
   • Payment – Paying cash/bank (e.g., rent, supplier payment)
   • Receipt – Receiving cash/bank (e.g., customer payment)
   • Sales – Selling goods or services
   • Purchase – Buying goods or services
   • Journal – Adjustments (depreciation, expenses outstanding)
   • Contra – Cash deposited/withdrawn from bank
2. Inventory Transactions
   • Stock purchase
   • Stock sale
   • Stock journal (transfer between godowns)
   • Physical stock

How a Transaction is Recorded (Basic Steps)

1. Open Tally Prime
2. Go to Gateway of Tally
3. Select Vouchers
4. Choose the required voucher type (F4–Contra, F5–Payment, F6–Receipt, F8–Sales, F9–Purchase, etc.)
5. Enter:
   • Date
   • Party name
   • Amount
   • Ledger/stock details
6. Save the voucher

Why Transactions Are Important

• Track income and expenses
• Maintain accurate books of accounts
• Generate GST reports
• View profit & loss, balance sheet, and stock summary