Control Purchases Cost if it’s above than Order Cost
Control purchase cost in TallyPrime by validating invoice price against order cost. Prevent overbilling, improve procurement control, and protect margins.
Control Purchase Cost if it’s Above Order Cost for TallyPrime
Prevent Over‑Cost Purchases and Maintain Procurement Accuracy
Introduction
In procurement processes, businesses usually create a Purchase Order (PO) with agreed prices before receiving supplier invoices. However, during purchase entry in TallyPrime, users may accidentally or intentionally enter a purchase cost higher than the original order cost. This can lead to:
- Increased procurement costs and reduced profit margins
- Vendor billing discrepancies and disputes
- Budget control issues and unauthorized expense inflation
- Inaccurate cost recording and audit complications
The Control Purchase Cost if it’s Above Order Cost Add‑on by Pragyantra helps businesses validate purchase prices against the original order cost, ensuring strict cost discipline and preventing overbilling.
What is “Control Purchase Cost Above Order Cost”?
This add‑on is a custom Tally module that compares the purchase invoice price with the purchase order price during entry. With this add‑on installed, Tally can:
- Compare Invoice Rate vs Order Rate: Real-time validation of rates during purchase entry.
- Show Instant Alerts: Notifies the user if the entered cost exceeds the agreed PO rate.
- Block Transactions: Optionally restricts saving invoices that violate price agreements.
- Authorized Override: Allows managers to approve price variations in special cases.
Why Businesses Need This Add‑on
Over‑cost purchases can negatively impact profitability. Common challenges include suppliers charging higher than agreed rates or simple data entry errors. The Pragyantra Purchase Cost Control Add‑on helps enforce rate validation and procurement discipline, ensuring that supplier billing remains consistent with agreed purchase terms.
Key Features of the Add‑on
Order vs Invoice Price Validation
Automatically links the purchase invoice to the PO and identifies any rate hike instantly.
Real‑Time Alerts & Restriction
Displays clear warnings and provides a hard-block option to stop unauthorized cost increases.
Permission-Based Override
Maintains flexibility by allowing authorized personnel to approve exceptions due to market fluctuations.
Improved Procurement Accuracy
Ensures that your purchase register strictly follows predefined pricing agreements with vendors.
Lightweight & High Performance
Built using optimized TDL architecture to ensure price checks happen instantly without any lag.
Business Benefits
- Cost Control: Prevents overbilling and ensures 100% purchase cost discipline.
- Improved Margins: Avoids unnecessary increases in raw material or trading expenses.
- Better Vendor Management: Easily identify and monitor suppliers who deviate from agreed rates.
- Strong Internal Controls: Automates the validation process, reducing manual supervision.
Use Cases
- Manufacturing: Controlling raw material purchase costs against long-term POs.
- Trading Businesses: Ensuring supplier rates strictly match the agreed purchase orders.
- Distribution: Managing bulk procurement pricing accuracy for better bottom-line results.
- SMEs: Maintaining strict budget and cost control over every single purchase transaction.
Compatibility
This add‑on works with:
✔ TallyPrime
✔ Tally ERP 9
Frequently Asked Questions (FAQ)
1. Will this add-on work if I partially link an invoice to a Purchase Order?
Yes. The add-on validates the rates for all items that are linked to a specific PO. If the rate in the purchase invoice is higher than the linked PO rate, the alert will trigger.
2. Can I set a tolerance percentage (e.g., 2% variation allowed)?
By default, it is a strict rate-to-rate match. However, it can be customized to allow a specific tolerance percentage if your industry faces frequent minor price fluctuations.
3. What happens if the purchase rate is lower than the order rate?
The add-on only restricts "Over-Cost" scenarios. If the purchase rate is lower than the order rate, Tally will allow the entry as it results in a cost saving for the business.
4. Does it work with multi-currency purchase orders?
Yes, the add-on is compatible with multi-currency transactions and validates the rates based on the currency specified in the Purchase Order.
Never Pay a Rupee More Than Your Agreed Price
Inaccurate vendor billing can lead to thousands in losses every month. Automate your price validation and ensure strict procurement discipline with Pragyantra.
👉 Contact Pragyantra today to safeguard your procurement budget and improve profit margins.
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It is a Tally add‑on that validates purchase invoice rates against purchase order rates.
It helps prevent supplier overbilling and ensures cost control.
Yes. It can restrict entries where purchase cost exceeds order cost.
Yes. It works with both TallyPrime and Tally ERP 9.
