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How to Handle “Buy One Get One Free” Offers or Billing Quantity vs. Actual Quantity in TallyPrime

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Promotional offers like “Buy One Get One Free” (BOGO) are common in sales, and managing such transactions in accounting,  there are 3 important concepts to understand: Billing Quantity and Actual Quantity. These help you record sales accurately while ensuring proper stock management.

  1. Actual Quantity: This refers to the total physical quantity of the items being delivered or purchased.
  2. Billing Quantity: This is the quantity being billed to the customer or vendor. In offers like “Buy One Get One Free,” you may deliver more items than you bill.

 

Method 1: Use Zero Rate for Free Item 

Invoice Entry Example 

Item  Quantity  Rate  Amount 
Smartphone  1 Nos  ₹15,000  ₹15,000 
Smartphone (Free)  1 Nos  ₹0  ₹0 
Total      ₹15,000 

Steps in Tally: 

  1. Go to Accounting Vouchers → Sales (F8) 
  2. Select Customer Ledger 
  3. Select item Smartphone, Quantity: 1, Rate: ₹15,000 
  4. Again, select Smartphone, Quantity: 1, Rate: ₹0 
  5. Complete the invoice 

 

Method 2: Show Discount Instead of Free Item (optional) 

Instead of adding the free item, give 50% discount on total quantity. 

Item  Quantity  Rate  Discount  Amount 
Smartphone  2 Nos  ₹15,000  50%  ₹15,000 

In this method, you show 2 items but give 50% item-wise discount to match the BOGO offer. 

Use this if you want to avoid showing ₹0 value items in inventory reports. 

 

Method 3: Use Actual Quantity & Billed Quantity 

In this method, you issue 2 units but bill only 1 unit. 

Why is This Important?

Using the Billing Quantity and Actual Quantity fields ensures that:

  • Your stock reflects the correct physical movement of goods.
  • Discounts, free items, or offers are recorded properly in the sales or purchase invoices.
  • There is transparency in your invoices, showing what was sold and what was offered for free.

BOGO means: 

  • Customer pays for 1 item and gets another 1 free.
  • The free item has no extra cost. 

Example: Buy 1 Smartphone @ ₹15,000 and get 1 Smartphone free. 

Example: 

  • Actual Quantity = 2
  • Billed Quantity = 1
  • Rate = ₹15,000 

Item: Laptop 

Method  Actual Qty  Billed Qty  Rate  Total 
Smartphone  2  1  ₹40,000  ₹40,000 

 

Tally automatically calculates total as 1 × ₹15,000 = ₹15,000 

Steps: 

  1. Enable this setting: 
  2. Gateway of Tally → F11: Features → Inventory Features 
  3. Set Use Actual and Billed Quantity to Yes 
  4. In Sales Voucher: 
  5. Item: Smartphone 
  6. Actual Qty: 2 
  7. Billed Qty: 1 
  8. Rate: ₹15,000 
  9. Total = ₹15,000 
  10. Free unit is accounted but not charged 

This method is cleaner — especially for stock tracking, GST reports, and invoicing. 

 

Step 1 : Enable Actual And Billed QTY , Press F11 Key for

Enable Suppurate Quantity And Actual Quantity” Feature.

 

Step 2 Pass Purchase Entry
Here you can see two column in quantity first of Actual and second will billed. So here you need to fill total purchase in actual column and in billed column fill paid quantity which quantity’s amount paid. for example company purchase following item on buy 1 get 1 rate.

 

Pass Sales Entry
Here you can see two column in quantity Column first of Actual and second will billed Column. Here you need to fill total Sales Qty in actual column and in billed column fill quantity which quantity’s amount Receipt.

 

 

Assignment: BOGO Sales Entry 

Method 1: Free Item with Zero Rate 

➤ In this method, you pass two item lines: 

  • 1 item with full rate 
  • 1 item with ₹0 rate (free) 

 

Assignment 1.1: 

  • Party: Ravi Traders
  • Date: 01-Apr-2025 
Item  Quantity  Rate  Amount 
Smartphone  1 Nos  ₹15,000  ₹15,000 
Smartphone  1 Nos  ₹0  ₹0 
Total      ₹15,000 

Tasks: 

  1. Create item: Smartphone 
  2. Create ledger: Ravi Traders under Sundry Debtors 
  3. Enter sale with 1 paid + 1 free smartphone 

 

Assignment 1.2: 

  • Party: Komal Electronics
  • Date: 10-Apr-2025 
Item  Quantity  Rate  Amount 
Laptop  1 Nos  ₹40,000  ₹40,000 
Laptop  1 Nos  ₹0  ₹0 
Total      ₹40,000 

Tasks: 

  1. Create item: Laptop 
  2. Create ledger: Komal Electronics under Sundry Debtors 
  3. Enter sale with 1 paid + 1 free laptop 

 

Assignment 1.3: 

  • Party: Sagar Tech Store
  • Date: 15-Apr-2025 
Item  Quantity  Rate  Amount 
Smartphone  2 Nos  ₹15,000  ₹30,000 
Smartphone  2 Nos  ₹0  ₹0 
Total      ₹30,000 

Tasks: 

  1. Create item: Smartphone 
  2. Create ledger: Sagar Tech Store 
  3. Enter sale of 2 paid + 2 free smartphones 

 

Method 3: Actual Quantity & Billed Quantity 

➤ In this method: 

  • Actual Qty = Total items given 
  • Billed Qty = Only the items you charge 
  • Rate applies only to billed qty 

 

Assignment 2.1: 

  • Party: Ankit Digital Mart
  • Date: 01-May-2025 
Item  Actual Qty  Billed Qty  Rate  Amount 
Laptop  2 Nos  1 Nos  ₹40,000  ₹40,000 

Tasks: 

  1. Enable Actual & Billed Qty in Inventory Features 
  2. Create item: Laptop 
  3. Create ledger: Ankit Digital Mart 
  4. Enter sale using this method 

 

Assignment 2.2: 

  • Party: Sona Infotech
  • Date: 05-May-2025 
Item  Actual Qty  Billed Qty  Rate  Amount 
Smartphone  2 Nos  1 Nos  ₹15,000  ₹15,000 

Tasks: 

  1. Create item: Smartphone 
  2. Create ledger: Sona Infotech 
  3. Pass entry: 2 units issued, only 1 billed 

 

Assignment 2.3: 

  • Party: Techno Bazaar
  • Date: 10-May-2025 
Item  Actual Qty  Billed Qty  Rate  Amount 
Laptop  4 Nos  2 Nos  ₹40,000  ₹80,000 

Tasks: 

  1. Create item: Laptop 
  2. Create ledger: Techno Bazaar 
  3. Enter sale: 4 laptops issued, 2 billed, total = ₹80,000 

Handling promotional offers like “Buy One Get One Free” is easy in TallyPrime with the Billing Quantity and Actual Quantity features. By following the steps in this guide, you can efficiently manage stock, create transparent invoices, and maintain accurate records of your sales offers.

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