How to follow up on unpaid invoices in TallyPrime
Last reviewed 22 October 2026. General information, not legal or tax advice.
Most Indian businesses already have everything they need to chase payments inside TallyPrime: every sale, every receipt and, if bill-wise details are kept, a due date for each invoice. What is missing is a routine. This guide turns the outstanding report into one.
1. Keep balances bill by bill
In each customer (Sundry Debtors) ledger, set Maintain balances bill-by-bill to Yes and give a default credit period. When you record a sale, enter the bill reference and the credit period. Receipts are then adjusted against specific bills, and Tally knows exactly which invoices are still open and how many days late each one is.
2. Open the receivables report
In TallyPrime, go to Display More Reports → Statements of Accounts → Outstandings → Receivables. You see every open bill with its date, due date, pending amount and overdue days. Use the report’s options to sort by overdue days or filter to bills past due.
3. Decide who to contact first
Not every late bill deserves the same effort. Start with customers whose bills are both large and old, then those who have broken a promise to pay. Customers with a single small bill a few days late can wait for a polite reminder.
4. Send one message per customer, not per bill
List all of the customer’s open bills, the total, and how to pay (bank details or a UPI QR). Keep the tone courteous before and on the due date and become firmer as the bill ages — never threatening. If you are a registered micro or small enterprise, a firm reminder can mention the interest the MSMED Act allows on late payments (see the 45-day rule guide). Ready-made wording is in our reminder templates.
5. Record the answer
Note what each customer says: a date they will pay, a dispute about a bill, or a payment they say they have made. Follow up on the promised date, sort out disputes with the right person, and check the bank for claimed payments before chasing again.
6. Refresh after recording receipts
Record receipts against the right bills in Tally, then work from a fresh report, so nobody is chased for money they have already paid.
Doing it without the manual work
Tagaada reads TallyPrime’s Bills Receivable export (Excel or XML), plans who to contact each day, drafts each message from templates you approve, sends it on WhatsApp or email inside working hours, and tracks promises and disputes. Automatic sync from Tally is available on request. It is free while we grow.
Frequently asked questions
Why does my outstanding report show one amount per party instead of each bill?
Bill-wise details are not being kept for that ledger. In the party ledger, set "Maintain balances bill-by-bill" to Yes and enter a bill reference (and credit period) when you record sales. Old entries without references show as "On account".
Can TallyPrime send payment reminders by itself?
TallyPrime can show and print outstanding statements, and you can email or share reports from it. It does not plan a follow-up sequence, track promised dates or read replies; that part is usually done by hand or with a separate tool.
How often should I follow up?
A gentle reminder a few days before the due date, one on the due date, and then about once a week while the bill is overdue works for most businesses. Stop as soon as the customer pays, promises a date or raises a dispute, and pick up again only if the promise is missed.
Does this work with TallyERP 9?
Yes. The menu names differ slightly, but the bill-wise outstanding report and its export exist in both.