Tally Tutorial | Learn Tally Online

Voucher Dates in Tally

2010-10-26T02:23:00.000-07:00

How the dates for vouchers are maintained in Tally 9.0? Whenever you create a new voucher Tally will automatically put the Date. Which date Tally will Put. By default the date for the first voucher you enter first time is the 'Book Beginning From' Date you entered in the company creation screen.

For example, if you gave 01-04-2010 as the Book Beginning From the default date is 01-04-2010. You have to change the date during voucher entry. During voucher entry press F2 to change the current. Subsequent vouchers will be set to this date.

When you close Tally and open it on some other day the date will be the last date you used in any voucher.

How to enter cash expenses in Tally 9 ?

2010-09-04T02:31:00.000-07:00

Making Cash Expense Entry in Tally

Somebody asked how to enter cash expenses in Tally. Expenses are paid through payment vouchers. To make expense entry open payment voucher. Tally Will ask for the account to be debited. Select the Ledger for which you pay the cash. For example if you are paying for maintenance expense select the corresponding ledger. Then select cash account on the credit side and enter credit amount and save the voucher.

Tally 9.0 - What is Debit / Credit?

2010-09-04T02:24:00.000-07:00

Somebody asked a basic question in Tally. In fact it is question in financial accounting. What is debit or credit in Tally? In accounting practice a single transaction is done by making two entries. One party is giving the amount and another is receiving. The giver's account is credited and receiver's account is debited.

The basic rule is Debit the receiver and credit the giver, debit what comes in and credit what goes out. For example if a customers buy goods/service and paying his bill. His account will be credited and cash / bank account will be debited.

Debit, Credit - Single/Double entry

2010-07-20T23:51:00.000-07:00

Configure single/double entry for payment, receipt and contra

Somebody asked me he is not getting debit credit entry fields in payment/receipt vouchers. Tally 9 by default is set to single entry for payment, receipt and contra. That means you will select a single that is to be credited or debited (for payments credited, for receipts debited) then you will select the accounts to be credited (for receipts) or debited (for payments). This is the single entry mode in Tally.

For example if you are making a payment you will first select a Cash or bank account and in the particulars you will select a supplier (for example). and on the right hand side you will enter the amount of payment. This method is simple and convenient. However if you want double entry system you can still use it by configuring Tally.

To do this open Accounting Vocher Creating screen (F5: Payment, F6: Receipt). Press F12: Configure. Give No to Use Single Entry mode for Pymt/Rcpt/Contra. Now you will have both debit and credit fields.

Learn Tally 9 in Hindi

2010-07-06T03:06:00.000-07:00

Tally in Hindi With Google Translate

Google offers a wonderful tool to translate web pages from one language to others. Many people wish to learn tally (Indian Accounting package) in their own language. Many people asked me to provide the tutorial in Tamil, Malayalam, Kannada, Telugu and Hindi. I can write in all these languages. I can write only in English and Tamil. But Google a offers a translation tool to translate to many languages.

I have used the tool in my blog. You can find the translate option in bottom right hand side of this blog. Enjoy! Now learn Tally in Hindi!!

New Financial Year Creation in Tally

2010-06-11T04:18:00.000-07:00

How to split company Data?

For each financial year we want to keep separate data. When a financial year ends we want to put the closing balance of previous year as opening balance of new year. It tally it is easy to create new financial year by splitting company data.

For example if your current financial year is 1-4-2010. At the end of 31-3-2011 you will want to open new account. So ledger balances will be carried over. Voucher numbers will start with number 1.To do this use the 'Split Company Data' option in tally.

Here is the step-by-step guide create new year:

Open Tally 9. Open the company you want to split. Press Cmp. Info (Alt+F3) button on the right hand side.

You will get the above screen select 'Split company Data'.

Give the beginning date of new financial year. Usually April -1 is the commencement of new financial year in India. So give that date. press enter. Now you will have two companies First Company and Second Company. Your Original data will be retained.

Narration for Each Entry in Voucher

2010-06-11T03:58:00.000-07:00

How to configure to use narration for each entry?

Someone asked me to show how to configure tally to enter narration for each entry. If you set this option tally will show a narration field for each ledger involved in voucher. This option should be set for the voucher type you wish to set. For example if want narration for each entry in payment voucher, you have to alter payment voucher to set this.

In the Gateway of Tally select Masters -> Accounts Info -> Voucher Types -> Alter. List of voucher types will open. Select a voucher type to set narration for each entry. For example select payment voucher and give yes to Narrations for each entry.

Now when you make payment voucher you will be asked for narration for each ledger.

BRS - Bank Reconciliation in Tally

2010-06-11T03:36:00.000-07:00

How to get BRS Reports in Tally 9?

What is BRS? In accounting terminology BRS stands for Bank Reconciliation Statement. For example you make a payment by issuing a bank check to a party / supplier. What will happen to the check. The transaction will not reflect immediately in your bank. The party will first deposit the check on or after the date mentioned on the check. Then it will take further one-three days for the check to clear depending on the bank. But your voucher entry in Tally is on prior date. So your bank ledger in tally may be showing wrong balance, not the actual balance. You don't know what happened to the check. Whether it is cleared or not? After getting your bank statement you will make reconciliation entry. Thus you will get actual bank balance.

In Tally 9 there is an option to enter the bank date. Tally will show two balances in reconciliation statement. The Balance as per company books. And amount not reflected in Bank, and Balance as per Bank.

Whatever voucher entries you make (Payment/Receipt/Contra etc) will be reflected in Balance as per company books. For whatever vouchers you make BSR entry will be shown in Balance as per bank. The difference between the two is given as Amount not reflected in Bank.

We will see this with the following examples and screen shots.

Now will go to Display menu -> Accounts Books -> Ledger -> State bank of India. Then Click Reconcile button on the right hand side. (Short cut : F5).

Now the Balance as per company books is Rs. 1000
Amounts not reflected in Bank is Rs.1000
Balance as per Bank is Rs.0
I gave the check on 11.june.10. If the check clears on 13.june.10 i give that date under Bank Date column. Now the Bank account will tally

Examples of Standard Narration for voucher entry

2010-06-11T02:09:00.000-07:00

During voucher entry Tally will ask you to enter narration. Though narration entry is not mandatory it is good practice to give descriptive narration. Here are some examples for giving narration.

In the payment and receipt vouchers tally by default will ask for cheque number by prompting Ch. No.: Here just type the cheque number and date for your reference.

In sales/purchase vouchers you can give whatever you wish to remember.

Voucher Entry - Basic Vouchers in Tally

2010-02-05T05:50:00.000-08:00

Particulars

If you create Accounts voucher

In this field you should specify Dr or Cr. Type the letter D or Dr over the existing prompt to change, then select the ledger name from the pop-up list that Tally opens. There may be multiple Debit and Credit entries in one single voucher.

If you create Inventory voucher

If you are creating inventory voucher in Tally you will give information about the stock item you receive or issue and item related details like the Godown/warehouse, Batch Details, Quantity, Rate, Amount etc.

Debit / Credit Amount:

This field appears in Accounts voucher only. Enter the amount of transaction and press Enter key. Tally will update current balance of the ledger and display it. This will happen only if you gave 'Yes' to the question 'Show Ledger Current Balance?' under Accounting Voucher in Vouchers Entry under F12: configure option. The total will appear on the bottom of the Debit and Credit columns. If both credit and Debit totals are not equal Tally will prompt to enter further Credit / Debit to balance the voucher. If both are equal Tally will move the cursor to Narration field.

The Narration field

The last field of Voucher is Narration, here you enter details of the transaction entered in the voucher. It is not mendatory / compulsory to give narration. You can type anything about the transaction or just leave this field blank. You can turn off narration by responding No to the question 'Use Common Narration?' at voucher creation/alteration screen.

Saving the Voucher:

After entering narration, when you press Enter key a confirmation prompt will appear Asking 'Accept Yes/No?'. Press Y or Enter to save the voucher or press N to return cursor to the first entry allows you to alter any data in the voucher. If you give Y Tally will save the voucher and blank screen will appear next to continue voucher entry.

Voucher Types in Tally:

Payment voucher:

The payment voucher is for all payments you make through cash or Bank. These payments can be towards expenses, purchases, to trade creditors, etc. Follow the below procedure to create a payment voucher.

All payment vouchers must have first entry a debit and at least one credit to a Cash or a Bank Account. You can have any number of debit and credit entries. However, if you do not credit one cash or bank account and still try to accept the voucher a message appears asking for a cash or bank account.

If configured, Fund Transfer entries can also be made in payment voucher.

If you have given Yes to 'Print After Saving Voucher?' in Voucher Type creation/Alteration Tally will print the voucher immediately after saving.

Receipt Voucher

The receipt voucher in Tally is for all receipts into the Cash/Bank account. The voucher is similar to the payment voucher except that you debit cash or bank A/cs and credit the ledger from which you receive. The first entry in receipt must be credit and at least one debit to a cash or bank account. There can by any number of debit and credit entries. If you do not debit one Cash or bank account, a message appears asking you to rectify the entry.

If you have given Yes to 'Print After Saving Voucher?' in Voucher Type creation/Alteration Tally will print the voucher immediately after saving.

Alternatively you can print any voucher later by going to Voucher Alteration screen using Display menu. Open the voucher and press Alt-P to display the 'Print Voucher' Screen. Give 'Y' to the Print? Prompt.

Sales Voucher

The first entry must be a debit involving any debtor, bank or cash account and second should be a credit to ledger placed under sales account group. Rest of the accounts may be any Revenue account or any account under the Group current liabilities. Thus you can include Duties&Taxes from 3rd entry onwards.

Purchase voucher

The first entry must be a credit involving any creditor, Cash or Bank account and second entry should be a debit to a ledger placed under purchase account group. Rest of the accounts may be any revenue account or any account under the Group Current Liabilities

Contra Voucher

The contra voucher is for Fund transfers between cash and Bank accounts only. The following is the rule,

For example, If you pay Rs. 10000 cash into State bank Account. Your contra entry should be like this,

Particulars             Debit/credit
Cr. Cash             Credit - 15000
Dr. State bank ac     Debit - 15000

Credit Note:

Credit Note is raised when a buyer reutrns some goods that you sold him. or you give him credit due to rate difference or discount/rebate or when there is an exces debit to any party

Debit Note:

You create a Debit Note when you make purchse return or when you have shortbilled a customer or you are granted credit by your supplier due to rate difference, discount etc.

Memo Voucher

This is purely Non-accounting voucher. These entries will not affect your accounts nor does affect your final results. You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the entry into your books.

You can use memo vouchers to make suspense payments, vouchers not verified at the time of entry, Items given on approval.

Voucher Entry

2010-01-06T18:50:00.000-08:00

Lesson 5 - Voucher Entry Basics

Account Voucher

Voucher is a document containing the details of a transaction. For every transaction, you make a voucher. The voucher entry option at the Gateway enables you to make your day-to-day entries.

Voucher Entry in Tally 9

To make your voucher entries, press V at the Gateway. This brings you the Voucher Creation screen as shown in Figure.

F12: Configure: At any voucher screen, when you press F12: Configure, you get a screen as shown to configure your options.

The options are classified under two sections, namely

Accounting Vouchers, Inventory Vouchers
Now we will discuss accounting vouchers,

Show Cost Centre Details?
If you want to allocate transactions to Cost Centres, set this option to yes which will pop-up a window for cost allocation during Voucher entry.

Show Inventory Details?
If you want to input Inventory Details in Vouchers like Sales or Purchase, set this option to Yes which will pop-up a window for Inventory allocation during voucher entry.

Show Table of Bills details for Selection?
Normally, the list of Outstanding Bills appear when you make any transaction relating to ledger for which Bill by Bill option is set to Yes, and you select Ag Ref, so that you can pick up the Bill you want to adjust. However, if there is long outstanding list it may slow down the pace of voucher entry. To prevent the Outstanding Tables from being popped up during Data Entry, set this option to No, to speed up data entry.

Show Bill-wise Details?
If you want to input Billwise details in Vouchers for the ledgers for whom you have set yes to maintain bill wise details, set this option to Yes which will pop-up a window for Billwise allocation during Voucher entry.

Expand into multiple lines?
In the bill wise details, if you wish to view another line displaying the due date of the bill also, se this option to yes.

Show Balance as on Voucher Date?
If you have set the previous option to Yes, current balance of the ledger as at end-of-period will be displayed. If you turn this option to yes, Current Balances as at voucher date will be shown during Voucher entry, instead of end-of-the period. This is particularly helpful if you enter vouchers of previous date when you want display of balance for the ledger as at the Voucher date instead of end-of-the period.

Use Payment/Receipt as contra?
Normally Fund Transfer transactions are entered in contra Voucher, however, if you prefer to record such transactions in payment / receipt vouchrers, set this option to yes (e.g when you transfer fund through bank draft / DD and pay bank charges, a payment voucher will be more convenient than contra voucher)

A note of caution here. Normally you should make fund transfer entries through contra voucher only, unless you have specific reasons to do otherwise. When you use Receipt or Payment vouchers for fund transfer, stick to a particular voucher type otherwise you may get partial or wrong report when you view for a specific type of voucher.

Allow cash Accounts in Journals?
Norally cash transactions are recorded in Contra, Receipt or Payment Vouchers and such entries are not permitted in Journal Vouchers which are exclusively used for adjustments between Ledgers other than Cash and Bank Accounts. However, if you wish to pass a journal Voucher involving cash / bank Ledger, set this option to Yes.

Use Cr/Dr instead of To/By during Entry?
By default To and By appears during Tally Voucher entry, however if your preference is Cr & Dr, set this option to Yes

Warn on Negative Cash Balance?
During Vouchers entry if you want a warning when cash balance becomes negative, set this option to Yes.

Pre-Allocate Bills for payment?
Normally, you first enter the total amount paid/received and then select the Bills adjusted. By turning this option to Yes, you can first select the bills during Payment Voucher Creation. In such case, while entering a party account in a Payment Voucher, the list of outstanding bills come up to select the bills to be adjusted, simplifying the task of making payments without pre-calculating the total of the bills.

Allow Expenses/Fixed Asset in Purchase Vouchers?
Purchase Vouchers are normally allowed to include Direct Expenses (when this option is set to No). To allow Fixed Assets and Indirect Expenses also, set this option to Yes.

Allow Income Accounts in Sales Vouchers?
Sales Vouchers will be allowed to include Direct / Indirect Incomes by setting this option to Yes.

The voucher Creation Screen

Top portion of voucher Creation window displays the name of the company for which you are creating the voucher (Current company)

Description of items on the voucher screen:

Type of Voucher: Top left corner of the screen displays the selected type of Voucher. To select any other Type of Voucher, press relevant button. Different Types of Vouchers will be explained in detail.

Voucher Number: Just after the Type of Voucher, Number of the Voucher is displayed. If automatic numbering was set for the selected voucher type, it would be generated automatically and cursor would not move to this field. By default automatic voucher numbering is enabled in Tally 9. If manual numbering has been set cursor will move to the voucher number field to input number from keyboard.

Reference: This field appears in all types of vouchers except receipt, payment, journal, Reversing Journal and Memorandum Vouchers. It's a free field where you may input any reference relating to the Voucher. For example, you may enter Order Number, or Invoice number,in Purchase, Delivery challan number in sales voucher.

Date of Voucher: Date of the Voucher is displayed at top right corner of the screen which indicates date of voucher entry. The Current Date at Gateway of Tally is taken by default as date of voucher. To change the date, press F2 on keyboard.

Effective Date: This is the date which is considered for the computation of Due Date /Interest. This field appears if you have set Yes to the option, Use Effective Date for the specific voucher. Date of Voucher and Effective Date may be different. Also to change Effective Date, press F2 button that prompts Effective Date below Current Date.

Tally 9, Lesson 4

2009-09-16T19:42:00.000-07:00

Tally 9 Lesson 4 - Inventory Master

Inventory Info Menu contains the following masters to manage Inventory in Tally 9.

Stock Groups: Group the Stock Items
Stock Categories: Parallel Stock Groups
Stock Items: Actual Stock items which move
Godowns: Storage locations of the Stock Items
Budgets: Budgets for different requirements
Voucher Type: Various Voucher Types
Units of Measure: Simple & Compound UOMs

Normal and Advanced Information

Information is Masters are classified into 2 modes: Normal and Advanced. Normal information can always be entered. Advanced information can be entered only if Allow Advanced entries in Masters? Is set to Yes in F12: Configure

F12 : Configure -> Inventory Masters: Explanations

Allow ADVANCED entries in Masters?
Like Accounts Masters, you can work in Normal modes or Advanced modes for Inventory masters. Set Yes to work in Advanced mode

Use PART NUMBERS for stock Items?
To specify Part No for Stock Items, set to Yes which will prompt a field for Part No. at the time of creation of Items.

Use Description for Stock Items?
If you wish to input description for Stock Items, set to Yes which will cause a prompt to appear for items.

Specify Default Ledger allocation for Invoicing?
Stock Items can be given default Accounts Ledger accounts for both Sales and Purchase Invoices, which will further simplify entry of data through the Voucher Class mechanism for Sales / Purchase.

Use REMARKS for Stock Items?
If you require additional space for detailed description for stock Items, set to Yes which will prompt a t the time of creation of items.

Use ALTERNATE UNITS for Stock Items?
If any stock item is measured in more than one Unit of Measure, set to Yes. Tally will prompt for Alternate Unit at the time of creation of items.

Allow standard Rates for Stock Items?
If you wish to enter standard Cost Price and Selling rates, set to Yes. Tally 9 will prompt at the time of creation of items.

Allow component list details (Bill of Materials) ?
If you wish to input component details for any item set to Yes and Tally will prompt at the time of creation of item.

Use ADDRESSES for Godowns?
If you require to specify Godown address, set to Yes to get a prompt at the time of creation of Items.

Stock Group

You can classify all stock items into Stock Groups based on common feature, based on brand, quality, specification etc. For example a computer dealer may create Stock Groups like Hard Disk, Monitor, Keyboard etc. Again sub-groups may be created in each group e.g SATA Disk, IDE Disk. Thus you can nest groups to any level.

Here is an example of Stock Groups for Computer Dealers. In Stock Groups, Sub-Groups & Stock Items are presented in a hierarchical manner.

Hard Disk
SATA DISK
Seagate 80 GB
Seagate 160 GB
Samsung 250 GB
IDE DISK
Seagate 80 GB
Monitor
CRT Monitor
LG 15 inch
LG 17 inch
TFT Monitor
Samsung 15 inch
Sony 15 inch

Creation of Stock Group

Name: Enter name of the Stock Group
Alias: Enter optional alias or alternate name
Under: Al list displaying existing Groups appears to select from. To create Primary Group, select Primary.
Can Quantities of items be ADDED?
Give yes to this question if all stock items under it can be summed up. If it is not desired, set to No

Stock Categories

Stock Categories offer the benefit of classifying an Item in another dimension.

The concept of Stock Categories may be utilized in effective way once you have understood its implication and how to implement it in your context. You have the facility, it is incumbent upon the user to utilize it. If not properly planned, it may cause wastage of time.

Creation of Stock Categories

Name: Enter the Name of Stock Category
Alias: Enter an alternate name (optional)
Under: A list displaying existing categories appears to select from. To create Primary level group, select Primary.

Stock Items

Stock items are the actual items for which you wish to maintain Accounts. Like Accounts ledger, Stock Items are accounted for.

Creation of Stock Items

Name: Type the name of the Stock Item.
Alias: Alternate name
Part No: This field will appear if you have configured so under F12: Configure. Use Part Numbers for Stock items?.You can give Part No, Style No, Design No, Bin-Card No etc.,
Alias: Alternate for Part No.

Description: This option will be available if you have activated the option Use Description for Stock Items? Under F12: Configure. You can give descriptive details for stock Items which will be optionally printed in Invoice also.

Under: Select the Stock Group under which the Item should be placed. If you want to create the item independent of any Stock Group, select Primary here.

Category: This field appears if you activated Stock Category under F11: Features. Select the Stock Category from pop-up for the Item you are creating. If you do not want to categorize the item Select Not Applicable from list

Remarks: This field appears if you have configured so under F12: Configure. Enter Remarks for the Item so that while looking for the item you will get this additional information. You can also write information about the item.

Units: Select Unit of Measure applicable for the Item. You can skip it by selecting Not Applicable from the list.

Alternate Units: If you configure under F12: Configure, this additional option is available. Enter alternate Unit of measure for the item.

Maintain in Batches?
If you activate under F11: Features, this option is available. Respond yes for those items you wish to track batch-wise details.

If you set Maintain in Batches to Yes, you get the following additional options,

Track Date of Mfg.? Give Yes if you require to track date of manufacturing for the item.

Use Expiry Date? Give Yes to set expiry dates for items (Applicable to drugs/medicines)

Enter Standard Rates?
This option will appear if you have configured under F12: Configure Allow Standard Rate for Stock Items.

You may value your Closing Stock in different methods including Standard Purchase Cost or Standard Sales Price. These rates may vary periodically.

By setting Yes, you can enter Standard Purchase Cost and Sales Prices on different dates.

Also you must select a Unites of Measure in order to give rates.

These rates becomes standard price list rates, i.e., while entering sales or purchase entries for this item, rates of the day will be automatically picked up.

Rate of Duty: Specify Rate of Duty applicable for the Item
Tariff Classification: Enter Tariff classification under which the item falls. This field will appear when you enter a valid value in the Rate of Duty above.

Set Components (BoM) ?
For items which are manufactured or assembled if you wish to input component details (Bill of Materials) set Yes. Which pops up a screen to enter component details.

Opening Balance: Enter opening stock details for the item. If you have activated all the features, you will be asked to enter Quantity, Godown, Batch/Lot No., Rate, Per and Value. You can split opening stock into multiple batch-wise, Godown wise.

Advanced Information

If you set Allow Advanced entries in Masters under Inventory Masters in F12: Configure to Yes, you may specify following additional information.

Costing Method: For default closing stock value, select one of the Valuation method from the pop-up list which displays following options

Average Cost: Value is re-calculated after every transaction
FIFO (First In First Out): Considers sale of oldest stock first
Last Purchase Cost: Values at latest purchase price
LIFO Annual: Considers sale of latest goods first taking into account the current financial year.
LIFO Perpetual: It is similar to LIFO perpetual but last purchase continues from previous financial year
Standard Cost: As you enter in Stock Item at Standard Rates

Market Valuation Method: While Costing Method Computes cost of Stock, by Market Valuation, you determine the worth of stock. Select the method from the following.

Average Price
Last Sale Price
Standard Price

Ignore difference due to Physical counting? Respond Yes if you want to ignore difference in stock according to books and actual stock that you may enter in Physical Stock Voucher. Before setting to Yes, consider the consequences.

Ignore Negative Balance?
Set to Yes if you want to ignore negative stock balance in stock reports.

Treat all Sales as New Manufacture?
If you follow the principle, all Sales are Manufacture, set it to Yes which will update the quantity manufactured as soon as you enter sales. The advantage is you will never get a report showing Sales in excess of Manufacture / Purchase.

Treat all Purchase as Consumed?
If you follow the principle, all purchases are consumed, set it to Yes. Then you need not keep track of issues and obviously closing stock for the Item will always be NIL

Treat all Rejections Inward as Scrap?
If you treat all stock that comes back as rejected is scrap, set this to Yes.

Allow Use of Expired Batches?
This option is available if you have set for Maintain in Batches and Use Expiry Dates. If you set this option to No, expired batches will not be considered in stock reports nor you can allocate expired batches in Inventory allocations in Voucher Entry.

Godowns

Godown is the place to store Goods which may be a warehouse, Rack, shelf, bin or anything. You can extend this concept even to process / contractor / third party job worker.

If you wish to monitor locationwise movement of stock, you may create Multiple Godowns and while recording transactions you will specify the location, i.e., Godown

Tally 9 allows you to create not only multiple Godowns, but like Cost Centers, you can create sub-Godowns and nest into any level. Thus you can logically build Factories, Warehouses, Shed Numbers, Godown Number, Rack Number, BIN Number etc.

Creation of Godown

Name: Type the name of the Godown
Alias: Alternate name
Address: This option will be available if you set Use Address for Godowns to Yes in the Inventory Masters under F12: Configure. You may enter address for the storage space.
Under: If it is primary level godown, select Primary from the list. If the storage space is under any created Godown, select from list.

Advanced Information

If Allow Advanced entries in Masters is set to Yes in Inventory Masters under F12: Configure, you can input following additional information.

Allow Storage of Materials?
If you do not store any materials directly in any Godown, you may set it to No.

Exclude from Stock Valuation?
If you want materials stored in any godown not to be included in stock valuation, set to Yes.

Unit of Measure

Different items may be measured in various units e.g., KG, Metre, Litre, Box, Carton, Dozen, Set, Piece etc. This options allows you to create all such units.

Creation of Unit of Measure

Symbol: Enter symbol t denote the Unit of Measure

Formal Name: Enter full name of the Unit. It must be different from Symbol

Number of decimal places: If the unit can be expressed as fraction, specify maximum number of decimal places required to express. If any Unit is not fractionable, give 0. permissible range is 0 to 4.

Creating Complex Unit of Measure
If the simple UoM is not sufficient, you may create a complex UoM and specify the conversion factor between them.

Voucher Types

2009-09-16T02:29:00.001-07:00

Voucher Types in Tally

By default Tally 9 provides 18 types of Vouchers (with out counting payroll vouchers) for recording different natures of transactions. However, if you require further Voucher Types that function like the one of the existing type, you can create New Voucher Types and give different Voucher Numbering series.

The Voucher Type facility is great as you can make several alternates of each pre-fixed Voucher Type. For example, for Sales Voucher, it may be convenient to have several Voucher Types like Cash Sales, Credit Sales, Sales To Registered Dealers, Sales to Unregistered Dealers, Export Sales, etc. By creating separate voucher types for them, you can independently configure their numbering scheme, layout, etc.

Creating New Voucher Type

Select Create from the Voucher Types menu.

Name: Enter a name for your new Voucher Type.

Type of Voucher: Select the Type of Voucher from the List of Voucher Types. The Voucher you are creating will have similar functions that you select here.

Abbr.: Enter abbreviated short name for the new type of Voucher, preferably within 5 Characters.

Method of Numbering: Select from the list of Types of Numbering that displays following options:

Automatic
Manual
None

If you want to get system-generated numbering, select Automatic. On selection of this option, and giving Yes to Use advance Configuration? You will get the following prompts.

Starting Number: Give the Starting number you wish. By default 1.
Width of Numerical Part: Tally 9 on it’s own adjusts the width according to the number if you leave this field blank. To get aligned look in Reports, specify maximum width, e.g., 5

Prefill with Zero? Give Yes to fillup the numbers with zeros. No will leave the space blank.

For example if you give width 5 and the voucher number is 13 then it will be displayed and printed as:
00013

You configure the Voucher Number to be reset at given intervals Daily, Monthly, Weekly, Yearly from the starting Number

You can give prefix or suffix to your Voucher. If you give ‘INV’ as prefix your voucher will be ‘INV00013’

Use Effective Dates for Voucher?

Give Yes if you want to enter Effective dates fro this type of Vouchers. You would opt for this if you have instances where a transaction under consideration for overdue / ageing analysis is recorded but will take effect from another date. If effective date is entered, the overdue/ageing will be considered from the effective date and not from voucher date.

Use Common Narration?
In a Voucher, you can enter multiple entries. If you want common narration for all the entries, set to Yes and No if you do not want common Narration.

Narrations for each entry?

If you want separate narration for each entry, set it to Yes, after each entry in Voucher, you will be prompted to enter narration for the entry. Give No if you don’t want separate narration for every entry.

Print after Saving Voucher?
If you want to print Voucher after saving, give Yes. You will require it for Sales Voucher / Payment Voucher.

Budgets in Tally 9

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Budget

Budgets are used to set targets and compare against actuals and get variances. You can create multiple Budgets for different purposes.

Creating Budgets

Name: Enter a name of the Budget for identification

Under: Like Cost Centres, you can have a hierarchical budget set-up i.e., Primary Budgets and Secondary budgets there under and nest upto any limit. Obviously, the first item should be Primary and then you can place it either under primary or any Budget created by you.

Period of Budget: Give the period range of the Budget in the columns From and To

Set / Alter Budgets of: You will get 3 options to select from

Group
Ledger
Cost Centre

By giving Yes at the Group column, you can set Budget for Groups of Ledgers accounts. Similarly by setting Yes at Ledger or Cost Centre Columns, you can set Budgets for individual Ledger or Cost Centres. You can also set for all of them.

When you set Yes in any of the 3 columns (Groups, ledgers and Cost Centres), a screen will pop-up to input details.

Account Name: Name of the Group for which the Budget belongs.

Cost Centre: You can earmark a particular cost centre for each group here by specifying the Cost Centre. If you want the Budget to be applicable for whole of the organization, select not applicable.

Type of Budget: You get 2 options to select the type of Budget, namely

On Closing Balance

This option is suitable for accounts where closing balance is to be monitored (e.g. personal Accounts) where Nett transactions for the specified period carries least importance. For monitoring Bank Balances, Overdrafts or Party accounts, select this option.

On Nett Transactions

This option is meaningful for Revenue Accounts where Nett transactions need to be monitored

Cost Centres

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Cost Centres

Cost Centers allows allocating to different Cost or Profit centres. Cost Centres are optional, that is you can do regular accounting without creating any Cost Centre. You can create cost centres in Multi-levels. i.e., Primary, Secondary. The First cost Centre created is always Primary. Subsequent Cost Cenres may be of primary level or may be placed under any existing Cost Centre, there is no limit in nesting.

To activate Cost Centres, you must set Yes to the Question Maintain Cost Centres in Accounting Features under F11: Features.

Create New Cost Centre

Category: Select appropriate Cost Category from pop-up window

Name: Here you type the Cost Centre Name. Duplicate names are not allowed.

Under: Select the parent Cost Centre from pop-up window under which this Cost Centre will appear. To create Primary Cost Centre, Select Primary from pop-up list.

Cost Categories

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Cost Categories

Cost Categories facilitate to allocate amount to multiple cost Centres in parallel. For example, a company may allocate an amount independently to Salesman, Products & Agents as follows:

Cost Category Salesmen Products Agents
Cost Cenres Mr A Printers M/S. ABC
Mr B Consumables M/S. XYZ

Now an amount of Rs. 3000 may be allocated to:

Mr. A – 1300 Mr. B – 1700
Printers-1600 Consumables – 1400
M/S. ABC – 1800 M/S. XYZ – 1200

Having done like this, now you will get reports of allocated amount accordingly.

To activate Cost Categories, you must set Yes to both the options Maintain Cost Centres & More than one Cost Category in Accounting Features F11: Features.

Name: Type the name of Cost Category. You can not create duplicates with same name.

Allocate Revenue Items: Give Yes to allocate Revenue Transactions (e.g., Sales, Purchase, expenses and income) to cost centres that you will create under the cost categories, specify No if you wish to allocate capital/non-revenue item only to the cost centres under this cost category.

Allocate Non-Revenue items: For revenue cost centres, set it to No. If you wish to allocate Non-Revenue or Balance Sheet items, set it to Yes.

Automatic Interest Calculation in Tally

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Interest Calculation in Tally

While creating a ledger account you will get the option.

Activate Interest Calculation?

This prompt appears if you responded Yes to the question Activate Interest Calculations? At F11: Features for the Company. If your response is Yes to that question, you will get another question: Use Advanced Parameters? Giving Yes will activate Advanced Mode and No will restrict to Normal Mode.

If you want interest to be calculated for the Ledger, respond Yes here. You can opt to compute Interest on two methods.

On Outstanding Balance Amounts: In this method, the interest is calculated on outstanding balance. This is normally suitable for Loan Accounts where you compute interest on running balances of the account.

On Outstanding Bills / Invoices / Transactions: This is applicable for ledger for which you have set Bill by Bill option

Calculate Interest Transaction by Transaction?

Give Yes to compute Interest on Bill by Bill basis. If you want Interest to be computed on Balance, respond No.

If you give Yes you will be asked Overwrite parameters for each transaction?
If you want to change Interest parameters during voucher / invoice entry, set Yes. If you want to enforce the parameters as specified in the ledger, give No, and you will not be prompted at the voucher entry

Simple Mode

I will teach you Interest Computations in Simple Mode. Advanced Mode will be discussed in another post.

On Outstanding Balance Amounts

If Bill by Bill option has not been opted for the Ledger, you have to specify Rate of Interest (%) and the Style , from the following

30 Day Month
365 Day a Year
Calendar Month
Calendar Year

This method is suitable for all sorts of loan & deposits accounts like Fixed Deposit, Term Loan, Secured & Unsecured Loan etc. However, it is not suitable for Bank OCC (O/D & CC accounts where the interest is computed as per bank’s own daily balance & not on the basis of you bank book balance.)
On outstanding Bills / Invoices / Transactions
If Bill by Bill option has been opted for the ledger, you will get a screen to define Interest Parameters as shown in picture.

Rate: Specify the rate of Interest in percentage (%)

Per: Select from the options available in popup menu

30-day Month
365-day Year
Calendar Month
Calendar Year

On: Select an option from available Interest Balances popup menu

All Balances
Credit Balances Only
Debit Balances Only

Applicability: Select one from Interest Applicable on pop-up

Always
Past Due Date

If you select Past Due Date an additional field by _ days will be there. Give number days.

Calculate from: Select one from Interest Appl From pop-up

Date of Applicability
Due Date of Invoice / Ref
Eff. Date of Transaction

Rounding: Select one from Rounding Methods pop-up

Not Applicable
Downward Rounding
Normal Rounding
Upward Rounding

If you select any Rounding methods you will be asked for

Limit: Specify the limit fro rounding off (e.g., 0.50)

Tally 9 provides versatile tools to control Interest Calculation and put the control at the user. You may control the applicability and rate beforehand of the transaction and enforce the rule rigidly by not allowing to change the rule on bill to bill basis. This enforces strict rule and you do not have to specify Interest for each Bill. The Interest Computation is governed by the rule set in the Ledger Account.

On the other hand, if you do not like to enforce uniform rate for all the bills relating to the ledger, you may allow to enter interest rates for each bill.

Ledger Creation in Tally

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Ledger Accounts Creation

Once you have created all the Accounts Groups, you are now ready to make entry for Ledger Accounts. To do, first arrange the Ledger Accounts and note down which ledger account is to be placed under which Group. Previous year’s Final Accounts may also be of help. There are two Reserved Ledger Accounts, Cash and Profit & Loss a/c. that are created by Tally 9 when you create a Company which you can not delete nor you can move them under any other Group.

Single Ledger Creation

Name: Type the new Ledger’s name here. Duplicate in name is not permitted.

Alias: Alternate names for you ledgers. This is optional.

Under: Select the Group under which this Ledger Account falls. You will get a pop-up window from which you can select the appropriate Group. To create a new Group press ALT+C which will bring Group Creation Screen. When you have created the Group, cursor will return to this place accepting newly created Group as default.

Opening Balance: Enter the opening Balance as on the date of Books Beginning From. Normally the Opening Balance of Revenue Accounts will be Zero unless you start from middle of the Financial Year. If your books begin at mid-year i.e., dates fro Financial year from and Books beginning from are different, enter closing balance of previous date as opening balance here for all capital and Revenue accounts.

Cr/Dr: If opening Balance figure is not zero, specify whether the amount is Debit or Credit.

Mailing & Related Details

If you have set Yes o ‘Allow Addresses for Ledger Accounts’ under F12: Configure, you can enter Mailing & related details for Ledger accounts under Sundry Debtors, Sundry Creditors, Branch/Divisions, Loan, Loan & Advances groups.

If you have set Yes at the ‘Use Contact Details for Ledger Accounts’ Under F12: configure, you get additional prompts to input Contact Person, Telephone, Fax Numbers etc.

Advanced information

If you have set Yes to Allow Advanced Entries in masters under F12: Configure, you get a screen with options configured by you.

Maintain balances bill-by-bill?

If you have set Yes in F11: Features to Maintain bill-wise details, then this option appears

While creating any ledger placed under Sundry Debtors or Creditors Group, you may specify yes to keep bill-wise details for the ledger
Similarly, you can specify Yes to other ledger accounts also, if you had specified Yes to For Non –Trading A/c also in Accounting Features under F11: Features

Specify No, when you do not need to maintain bill-wise details of outstanding balance but like to get ledger balances only. The input becomes simpler and you do not have to enter the bill-wise details of the Opening Balance as described below.

If you have specified Opening Balance and have opted for bill-wise details, then you may specify bill-wise details of Opening Balance in the popup box where in first field you enter date of Bill, next enter Bill Reference, Credit Days/Due Date in next field, amount of Bill outstanding and Debit or Credit in the last field. You may however, leave the full or part of the opening balance amount as On Account.

Cost Centres Applicable?

You get this option if you had set yes to Maintain Cost Centres in the Accounting Features under F11: Features. You may selectively specify Yes (or No) to the respective ledgers where you want to allocate the amount to Cost Centres/Cost Categories.

Inventory Values are Affected?

Specify Yes to ledgers like Sales / Purchase which affect Inventory. If any duty of Direct Expenses affects your inventory, you may set to Yes for such ledgers.

Percentage of Calculation

If you have set Allow Invoicing in the Accounting Features under F11: Features and if the Ledger is placed under Duties & Taxes Group or any other Group for which you responded to yes to the Query Used fro Calculation? Then you may specify the rate of Tax (%). On specifying rate, you have to select the Method of Calculation from the list of Types of Duties.

Additional Duty
On Total Sales
Surcharge on Tax
Tax based on Item Rate

Additional Duty

Under F11: Features, if you disable Excise Rules, Additional Duty and Surcharge on Tax functions similarly. If enabled, Additional Duty is added to the Tax based on Item Rate in the Invoice to reflect the Total Duty Payable.

On Total Sales

As the term suggests, this type of Duty will be calculated on the Total value of individual items ignoring the rate of Duty specified for each item in Stock Item Master.

Note: If you have responded yes to the question Calculate Tax on Current sub-total? In the Invoice/orders settings under F12: Configure, then the calculation will be on current sub-total and if set to No, it will calculate on Total value of Inventory Only.

Surcharge on Tax

A surcharge is treated as a percentage of the duty levied and is computed on immediately preceding entry. The Tally software presumes that the preceding line in the Invoice is the Duty on which surcharge is to be computed. This is suitable for taxes or duties like of Additional Excise Duty that is computed on the Tax (or Duty) amount.

Tax Based on Item Rate

If rate of Tax or Duty is directly associated with items which again differs from item to item, this type of Duty will be most suitable.

While creating Stock items, you get a field to specify Rate of Duty, where you may specify rate of Duty applicable for the Item.

When you select this Type of Duty for the Ledger, while preparing Invoice the rate of duty specified in each item will be picked up and computed. If more than one rate of Duty is applicable in single Invoice amount for similar rate of duty will be clubbed.

During Invoice Entry, the Tally software will automatically compute the Tax/Duty at the specified rate as per specified method which can however be modified.

Activate Interest Calculation?

This prompt appears if you responded Yes to the question Activate Interest Calculations? At F11: Features for the Company. If your response is Yes to that question, you will get another question: Use Advanced Parameters? Giving Yes will activate Advanced Mode and No will restrict to Normal Mode.

Here is the complete tutorial on Tally 9 Interest Calculation

Effective Date for Reconciliation:

When you create any Ledger under Bank Accounts (or Bank OCC) Group, this prompt appears displaying books beginning date as default. Enter here the date from which you want to reconcile the Bank Accounts.

Specifying Closing Stock Value

In Case of creating new ledger Accounts under stock-in-hand, you can enter only Opening Balance. You should enter figures of closing stock through Alteration mode which allows you to specify date and closing balance for that date.

Note: Date wise closing Balance is available only in Ledger Alter menu only. Once you create the stock ledger. Go to alter select the ledger and give closing stock values.

If you maintain non-integrated accounts, Balance Sheet as on this date will reflect the closing balance that you specify here. However if you maintain integrated accounts, you can not enter closing stock value through this option.

Credit Limit

For Ledger created under Sundry Creditors, Sundry Debtors and Branch / Divisions you get additional option ‘Set credit Limit:’ you can specify the credit limit amount for such ledegers.

Default credit period (in days) will be asked for these ledgers if you have given yes to Maintain balances bill-by-bill?

Alter

In this option you can change the contents of any existing ledger.

Note: To enter opening balance in an of the built-in ledger Accounts (Cash A/c, Profit & Loss A/c) select the Ledger in Alter mode and type opening balance.

To Delete a Ledger, first select the ledger from the pop-up in Alter mode, then press ALT+D keys, a confirmation box will appear. To confirm, press Y, the item will be deleted. However, if any voucher has been placed under the ledger, it can not be deleted as long as any Voucher is associated with the ledger. If you still want to delete the Ledger, list the vouchers which are associated with the Ledger through and option in Display mode, alter the voucher or delete the voucher. When there is no voucher contain the ledger to be deleted, you will be permitted to delete the Ledger. This Deletion concept applies to all masters.

Group Creation in Tally

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Account Groups

Account Groups provide you the ability to organize you Accounts. You can classify all ledger based on their functions. When you create a ledger, you have to put it in an appropriate Group depending on its nature of function. This classification is known as Grouping of Ledgers which determines whether the ledger goes into the Profit and Loss account o into the Balance Sheet. Grouping of ledger determines the type and amount of Information you can get.

Tally 9 provides a set of pre-defined Groups. You can use these Groups readily for classification of ledgers, without creating new Groups or you can create Groups under and of these Groups and place ledger under these Group or create new primary Group. You create multi-level Group one under another to any level.

Create New Group

Select Create under Single Group menu Groups menu, a screen appears to create a new Group with following fields as in picture.

Name: Type the name of the Group. You can not give duplicate name.
Alias: Give additional name(s) for the Group.When you select Group you can refer to it either by Name or by Alias. Alias is optional but Name is compulsory.

Under: When you reach this field a pop-up window will open and show all the existing Group heads. Select the parent group under which the Group being created should be placed. You may select any from the existing Group by pressing ALT+C which will bring Group Creation screen to create parent group of the group you are currently creating.

Creation of Primary Group

You can create a Primary Group if Allow Advanced Entries in Masters is set to Yes. While creating New Group, select Primary at Under, then select the nature of Group from the following 4 items

Assets
Expenses
Income
Liabilities

If you select Expenses or Income, you have to additionally specify whether this Group affects Gross Profit or not by appropriately responding Yes / No

For example, you may crate Groups like Depreciation, Interest on Loan, Selling Expenses etc. in primary Group. The advantage of Primary Group is that you can configure the Group nearer to your requirements than the default Reserved Groups provided by Tally 9.

Tally 9 Lesson 3

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Tally 9 Lesson 3 - Accounts Master

After company creation & configuration, first you should create the necessary Masters for Ledgers and Inventory Items.

Masters are placed under 2 Menu Items at Tally 9 Gateway, namely

Accounts Info
Inventory Info

The common fields in all the masters are explained below.

Name: to enter Name of the Master. You can enter long names (51 Chars. Max.)

Alias: It is an additional name for the Master, a sort of nickname. For example, If you call any Ledger or Group or any other Master by another name, enter it. You can select the item either by name or by Alias. For example, sometimes you refer to the ledger ‘Bharat Sanchar Nigam Limited’ as ‘BSNL’, so in name give Bharat Sanchar Nigan Limited and BSNL as alias. If you use codes, you can give Codes in alias. You can create multiple aliases for one master. Alias is optional, and you can leave it blank.

Single & Multiple Masters

Except for Budget, Voucher Types, Currency and Unit of Measure, for all other Masters under Accounts Info and Inventory Info menu, Tally 9 provides twin options for Creation, Alteration and Display, namely (1) Single option (2) Multiple option. In Multiple option all normal fields for multiple masters appear in columnar format – a convenient way to create many masters at one go. In Single option, you create each Master Individually.

Conversion of Name

When you type in lower case, Tally 9 automatically converts the first letter of every word of the name to upper case, to save time in typing. So, you may conveniently type a abc & co. and Tally 9 will convert it into ABC & Co.

Duplicate Name

You can not create duplicate masters or duplicate aliases. An alias of one master can not be the name of another master. While considering duplicates, Tally discards some punctuation marks (like -,/,(,)). So ABC (Pvt) Ltd A.B.C Pvt Ltd are same.

Accounts Info

Each menu has sub-menus. Let’s view all the menus and sub-menus that are available under Accounts Info menu before taking up options individually

Groups

Single Group

Create
Display
Alter

Multiple Groups

Create
Display
Alter

Here is Complete Tutorial on Groups in Tally 9

Ledgers

Single Ledger

Create
Display
Alter

Multiple Ledgers

Create
Display
Alter

Here is complete Tutorial on Ledgers in Tally 9

Cost Categories

Note: This Master is not activated by default. Go to features (F11) -> Accounting Features - > Give Yes to Maintain Cost Centres.
Single Cost Category

Create
Display
Alter

Multiple Cost Categories

Create
Display
Alter

Here is Tutorial on Cost Categories

Cost Centres

Single Cost Centre

Create
Display
Alter

Multiple Cost Centres

Create
Display
Alter

Here is Tutorial on Tally 9 Cost Centres

Budgets

Note: This master is not enabled by default. Go to Features (F11) -> Accounting Features -> Maintain Budgets and Controls

Create
Alter

Here is Tutorial on Budget Creation in Tally 9

Currencies

Note: This master is not enabled by default. Go to Features (F11) -> Accounting Features -> Allow Multi-Currency:Yes

Create
Display
Alter
Rates of Exchange

Voucher Types

Create
Display
Alter

Here is Tutorial on Tally 9 Voucher Types

Here is an explanation about Masters under Accounts Info menu

Accounts Group: Account Groups for classification of accounts. A set of pre-defined Groups are already available. Your created Group can be placed under any of the pre-defined groups or you can also create primary group. You can nest Groups up to any level.

Ledger Accounts: ledger accounts are the only essential masters for entering Accounting transactions.

Cost Centeres: Cost Centres allocate the figures of ledger accounts into entities like Departments, Projects, Salesman, etc

Cost Categories: Cost categories provide parallel Cost Centres, to allocate figures into many Cost Categories

Budget: You can set multiple budgets, compare against actual & get variances.

Voucher Type: Tally 9 provides some pre-defined voucher types, which in normal cases are good enough to record all types of transactions. However, you may add more sub classification of voucher types under any of the pre-defined voucher types. Enter your own voucher types through this part.

Now we will have a look at Accounting Features in Tally (F11:Features):

What is Maintain Bill-wise Details Feature?

If you want to maintain Bill-wise break-up for any ledger, set Yes, then this feature will be activated and you will be prompted to specify individually when you create any ledger whether you wish to maintain Bill-wise details for the ledger.
(for Non-Trading Accounts also?)

If you want Bill-wise tracking for other accounts also (besides Sundry Creditors & Sundry Debtors), set Yes, then this feature will be activated and you will be prompted when you create any ledger whether you to maintain Bill-wise details for the ledger.

Normally you need the Bill-wise details only for Sundry Debtors & Creditors. So, to keep things simple, set this option to No.

Maintain Cost Centres?

Respond Yes if you want Cost Centres, then Cost Centres will be activated and will be made available in Accounts Info Menu.

Use Rev. Journals?

Respond Yes if you want to use Reverse Journal Vouchers, then it will be available in Voucher by pressing F10.

Reverse Journals are needed to make Transient Journal Vouchers to get intermediate PL & Balance Sheet, after adjustments like Liabilities, Interest, Depreciation etc. you do not need to set this option just to get Monthly / Quarterly Trial balance etc.

Use Debit / Credit Notes?

Respond Yes if you want to use Debit and Credit Note Vouchers, then it will be available on pressing F9 and F8 in Voucher Entry Screen.
(Use Invoice mode for Credit Notes?)
If you want to enter Inventory details first from which the accounts data for Credit Not is built up, set this option to Yes, otherwise set No.

Activate Interest Calculation?
To calculate Interest for Ledger Accounts, set this option to Yes, to activate the Interest Calculation Option.
(Use advanced parameters?)
This options allows to set special rules for Interest Calculation

Normal and Advanced Information

Information in Masters are classified into 2 modes: Normal and Advanced. Normal information can always be entered. Advanced Information can be entered only if ‘Allow Advanced entries in masters? Is set to yes in Accts / Inv Info under F12: Configure

Note: The changes you carry out in F12: Configure are global, that is it will be effective for all companies you are working with Tally. So if you are working with multiple companies changing a Configuration will affect all companies whether you want or not.

Tally 9, Lesson 2 - Part II

2009-09-15T18:54:00.000-07:00

Tally 9, Lesson 2 - Configuration

F12: Configure

You can configure Tally 9 settings by pressing this button. This button is context sensitive. When you press this button at Gateway, a menu appears as shown in above picture. When you press this button at creation / alteration of Masters of Vouchers, you get respective configuration screens. If you press this button at any report screen, you will get configuration screen relevant to the report to configure display or printing of the report.

General

Here you set country Details, Default appearance of Names in reports, Style of short Date format, separator used for dates, Configuration of Numbers like decimal character thousands separator etc., and whether you want to have Graph in monthly Reports.

Numeric Symbols

You can set Symbols and whether to print it before or after the number. You can set individually for positive and negative numbers. By default ‘+’ is prefix for positive numbers and ‘-‘, for negative numbers. Also you can set symbols for Debit and Credit amounts. These symbols are used to display the numbers in desired format.

Accts / Inventory Info.

Allow Aliases along with Names?
Give yes if you want to give aliases for ledger names you create in masters.

Allow languages ALIASES along with names?
If you use a multilingual version like Tally 9 this option is available. If you give yes in to this option you can give ledger name and alias in other languages also when you create a master.

Allow advanced entries in Masters?
Give yes if you want to give advanced master entries. That is if you give Yes for a bank ledger creation / alteration you will get and option ‘Effective date for reconciliation’ otherwise you won’t get this option. Similarly if you enable, when you create a ledger under sundry creditor/debtor you will get an option ‘Inventory values are affected?’

Use ADDRESSES for Ledger Accounts?

Give yes if you want to type address for ledgers accounts. You will commonly do this for sundry accounts like creditors / debtors.

Use CONTACT DETAILS for Ledger Accounts?

Give yes if you want to enter contact details like Contact person, Telephone No, Fax, Email of the party.

Use PART NUMBER for stock items?
If you give yes to this option Tally 9 will ask for part number while creating Stock Items.

Use Description for Stock Items?
Give yes if you want to enter Description for Stock Items.

Use REMARKS for Stock Items?
Give Yes if want to type remarks.

You can set Default Ledger, use ALTERNATE UNITS, Standard rates, Bill of Materials, Godown ADDRESSES by using appropriate settings.

Voucher Entry

Skip Date field in Create mode (faster entry)?
If you give yes Tally will bypass Date field when creating vouchers. This will speed up entry as the cursor will go to next field without stopping at Date.

Use Single entry mode for pymt/Rcpt/Contra?
Give no if you want to give double entries (both credit entry and debit entry) in Payment, Receipt and Contra vouchers.

Similarly you can set options for Show Inventory Details, Show Table of Bill Details for Selection, Show Bill-wise Details, Show Bill-wise Deatils (Expand into multiple lines), Show ledger current Balances, Show balances as on Voucher Data, Use Payment/Receipt as contra, Allow cash Accounts in Journals, Use Cr/Dr instead of To/By during entry, want on negative Cash Balance, Pre-Allocate Bills for Payment/Receipt. Allow Expenses/Fixed Assets in Purchase Vouchers? Allow Income Accounts in Sales Vouchers

In inventory vouchers you can configure to Use Ref. Number in Stock Journal, Warn on Negative Stock Balance Honor Expiry Dates usage for Batches and Show Balances as on Voucher Date.

Invoice / Orders Entry:

Accepts supplementary Details?
Give yes if you want to provide Address Details and Dispatch Details while creating Invoice.

Also you can set options for Use of Common ledger A/c for Item Allocation, Use Defaults for Bill Allocations, Use Excise Format, additional item Description in Invoice, Separate Buyer and Consignee Names.

Exporters options includes Export Shipping Details, Marks & Nos /Container No, No. and kind of packages.

Calculate Tax On Current SubTotal?
Give yes to Calculate Tax on Current Sub Total. If you give No Calculation will be on Inventory Total only.

Show turnover achieved with customer?
Give yes if you want to see the Total turnover with selected customer while making Invoice.

Allow Modification of all fields during entry?
Give yes if you want to alter all columns in the invoice.

Warn on Negative Stock Balance?
Give Yes. Tally will warn you whenever there is negative balance.

Honor Expiry Dates usage for Batches?
Give Yes and you can not invoice and Items if the Batch is Expired. Give No if you still want to Invoice Expired items too.

Printing

General

Print Date & Time of Report?
Give yes if you want Date and Time in Reports

Print State and PIN Code with address?

Give Yes if you want State and PIN code to be printed along with address.

Stop Printing Vertical Lines / Borders?
Give yes if you don’t want the lines to be printed. This will speed up printing speed on Dot matrix printers.

Standard space on Top of pages (inches): You can set the margin space in inches. The default is 0.50 inch.

Split long names into multiple lines: Give yes if you want to print lengthy name in multiple lines.

Similarly give yes to Split long amts/numbers into multiple lines.

Purchase Transactions

Purchase Voucher / Invoice

Title of Document: You can give TITLE for your Invoice, the default is INVOICE.

Similarly you can set height of Invoice stationary, height, width and margin space.

You can also set Number of copies to print, Simple format / voucher format, Print order details, Print Company's Tax Regn. Numbers, Print Supplier's Tax Regn. Numbers, Print Quantity Column, Print Actual Quantity Column, Print Rate Column, Print Batch Details, Print Rate of Duty with Items, Print Sub-Totals after each line, Print Narrations.

Similarly you can configure printing for Receipt Note and Purchase Order.

Payment Vouchers

You can set Height of Voucher, width of Voucher, Space to leave on Top and left, Payment mode printing (Cash/credit), Print Bill-wise Details, Space for Checked/Verified initials, Print Foreign Currency Symbol.

Sales Transactions

You can set options for Sales Invoice, Delivery Note, Sales Order / Quotation printing.

Receipt Voucher

You can set height, width and other details for printing Receipts in Tally.

These settings can be configured for Journal/Contra and Debit/Credit Note separately.

Reminder letters

You can configure printing of reminder letters for over due of bills.

Tally 9, Lesson 2 - Configuration & Features - Part 1

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Tally 9, Lesson 2 - Configuration & Features - Part 1

Tally 9 Features (F11)

By pressing the F11 button you will get a screen as shown in Figure. The features you activate are specific for the selected company and will not affect any other company you work with Tally 9.

Here is the Features one-by-one

Accounting Features

General

Integrate Accounts and Inventory?

If you have opted Accounts with Inventory in Company Creation Screen, responding Yes here will post Closing Stock Value automatically to the Balance Sheet and Profit & Loss A/c from Inventory records. However, even if you have opted to maintain Accounts with Inventory for the Company but want to input Closing Stock value on your own respond No, which will not post the stock valuation and you will have the option to manually put the figure in stock Ledger(s).

Income/Expense Statement instead of P & L?

Instead of Profit & Loss Statement it will give as Income/Expense Statement

Allow Multi-Currency?

If you work with Multi-Currency in the Company, respond Yes.

Maintain Budgets and Controls?

If you want to maintain Budgets, Credit Limits, respond Yes

Invoicing

Allow Invoicing?

Bills can be entered either in Voucher mode or in Invoice Mode. The elementary difference is: In Voucher mode, first accounting entries are done followed by Inventory allocation requiring prior computation of Bill Value whereas in Invoice mode, first Inventory entries are made and the Bill Value is auto computed and Tax & Additional charges are also auto-computed. If you want Invoicing, give Yes.

Enter purchases in Invoice format?

If you want to enter Purchase Bills in Invoice format, give Yes.

Use Debit / Credit Notes?

If you want to generate Debit Note and Credit Notes you can enable this feature by giving Yes

Outstandings Management

Maintain Bill-Wise Details?

Set to Yes if you want to track bill-by-bill outstanding.

(for Non-Trading A/cs also?)
If you want bill-wise tracking for other accounts apart from sundry Creditors and Sundry Debtors, give yes

Activate Interest Calculation?
If you want to calculate Interests for Ledger Accounts, give Yes.

(Use advanced parameters?)
If you want to activate advanced parameters for Interest calculations, give Yes

Cost/Profit Centres Management

Maintain Payroll?
Give Yes if you want to maintain employee payroll (Attendance, Salary & Wages)

Maintain Cost Centres?
Give Yes if you want Cost Centres

Enable Cheque Printing?

Give Yes if you want to print Cheques.

Set / Alter Cheque Printing Configuartion

Give yes and a screen will ask for Company Name on Cheque and Name of Banks (From Bank Ledgers) After completing this another ‘Cheque printing Configuration’ Screen will open up. You can give width and height of the cheque, salutation and other options for printing the cheque. (Tally 5.4 prints payee’s Name in one line and will print cheque amount in 2 lines).

Inventory Features

Allow zero valued entries?
Give Yes to allow zero valued entries.

Maintain Multiple Godowns?
Give Yes if you want to maintain more than on Godown/Warehouse.

Maintain Stock Categories?
Apart from Stock Groups, if you want to have secondary classification of items into Stock Categories, give Yes.

Maintain Batch-wise Details?
If you require Batch/Lot-wise details for items, give Yes

(Set Expiry Dates for Batches)?
Set to Yes if you require Manufacturing and Expiry Dates for the batches (applies to Medical drugs / medicines)

Use different Actual and Billed Qty?
If your billing quantity if different from actual quantity set this option to Yes, which will allow to input different quantity for Actual and Billed. Actual quantity will update stock and Billed Quantity will be used to compute Invoice.

Order Processing:

Allow purchase order processing?
Give Yes if you want to generate purchase order (PO)

Allow Sales order processing?
Give Yes if you want to generate Sales order

Use Tracking Numbers?
If goods move without Invoice and if you require Goods Inward or Goods Outward vouchers give Yes.

Use Rejection Inward/Outward Note?
If you require separate document for rejected items, i.e, Rejection-In for Goods returned to you by Buyers and Rejection-Out for Goods returned by you to sellers to record movement of goods without Accounting documents, set this option to Yes.

Statutory & Taxation

Enable Dealer – Excise?
Give Yes to enable Excise duty

Set/Alter Dealer Excise Details
Give Yes and a screen will pop up asking for ECC/PAN based Regn/Code No, Range and Division Name and Address and commissionerate.

Enable Value Added Tax (VAT)?
Give yes to enable VAT

Set/Alter VAT Details
Give Yes and a screen will popup asking for State and applicable date for VAT

Enable Service Tax?
Give Yes to enable service TAX

Set/Alter Service Tax Details:
Give Yes and a screen will pop up asking for service Tax Registration No, Date of Registration, Assessee code, Division, Range and commissionerate.

Enable Tax Deducted at Source (TDS)?
Give Yes to activate TDS in Tally 9.

Set/Alter TDS Details
Give Yes and a screen will pop up asking for Tax Assessment Number, Income Tax Circle Etc.,

Enable Tax Collected at Source (TCS)?
Give Yes to enable TCS
Set/Alter TCS Details
Give Yes to alter TCS Details

Enable Fringe Benefit Tax (FBT)?
Give Yes to enable FBT Tax

Set / Alter FBT Details:
Give Yes and a screen will popup asking for PAN / Income – Tax Number etc.

Tax information:

Local Sales Tax Number: _________
Inter-State Sales Tax Number: ____________
PAN / Income Tax No: ________________

Tally 9, Lesson 1 - Company Creation

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Tally 9, Lesson 1 - Company Creation

Installation of Tally 9:

Different versions of Tally use different Installation methods. Previous version will work by simply copying folders to hard driver. Newer versions are coming with MSI Installer setup. There are licensing methods for various versions which we will discuss later.

After Installing Tally you can open Tally by clicking Tally Icon on the Desktop. You will get the Gateway of Tally Screen.

On the Left hand side is ‘List of Selected Companies’ which lists name of the companies selected and Date of Last voucher Entry for those companies. Right hand bottom side has two buttons Features and Configure.

(F11) Features will help you enable or disable Accounting, Inventory and Statutory Features. These features are company specific, that means it will be applied only to the current company you are working with.

(F12) Configure is used to change Reporting, Printing and numerical styles etc. This is applied to all companies in the DATA folder.

At the bottom of the screen there is a calculator option which can be used for arithmetic calculations.

Menu Selection in Tally

You can use keyboard up and down arrow keys for navigation. Also use the Hot Keys (Red color letter). Use ENTER key to select and item.

Freshly Installed Tally has no Companies created. So you need to create company first.

Simply select ‘Create Company’ and you will be taken to the next screen ‘Company Creation’.

Provide the following Details:

Name: Type the name of the company. The maximum characters for name field are 51.

Mailing Name: This will used to print name in all statements of accounts that are used to give parties outside of company.

Address: Address of the company

Statutory compliance: India for Indian companies

State: Respective state where your company operates

PIN code: Postal code

Telephone: Company phone number

E-Mail: Email ID if available

Currency Symbol: Rs. For Indians

Maintain: In Tally 9 there are two options: 1. Account Only 2. Accounts with inventory

Financial Year From: Enter beginning date of the financial year for which you wish to keep accounts. Books are closed exactly 12 months after this date.

Books Beginning from: The date from which you actually wish to maintain your accounts in Tally. By default this is the date you specify for the Financial year Beginning. You may however give a different date to maintain books only from that date. This must be a date further to the Beginning of the financial year. In such case, you give the opening balances for accounts as at the new date and start your entries from that date.

For example you start maintaining accounts on tally from 01-09-2009 give that date for Books Beginning from and give the closing Balance on that date for ledger opening balances.

Use Security Control: If want to protect data with security control give Yes and you will be required to enter Name of Administrator and password (15 characters max.)

Base Currency Symbol: Rs. For India

Formal Name: Indian Rupees for India

Number of Decimal Places: 2 for India

Is Symbol SUFFIXED to amounts? : If you give yes the currency symbol will be placed after the amount For example 100 Rs. instead of Rs. 100

Symbol for Decimal Portion: paise for India

Show amounts in Millions: Amount is shown in millions. For example 1,000,000
Put a SPACE between Amount and Symbol: Give Yes if you want a space between amount and currency symbol

Decimal Places for Printing Amounts in Words: Tally 9 will convert the numerical values automatically to words for printing in Invoices. Give the decimals required if you want paise to be printed in words.

Tracking Number

2009-09-08T02:54:00.000-07:00

Tracking Number in Tally

Tracking Number is used to identify the linking of transaction of Stock Items with or without corresponding Accounting entries and tracks the link subsequently. Through Tracking Number, you can affect Inventory & Accounting Transaction in any order and link them.

Tracking number would be useful when Inventory & Accounting Transactions are separate events.

Currency

2009-09-08T02:53:00.000-07:00

Currencies in Tally

Normally you will need only one currency, which is the currency of your country, called the Base Currency. Most of the transactions will be transacted in the base currency only. However, Multinational Companies, Exporter, Importer etc. may need to transact in other currencies also. Tally 9 provides to create as many currencies you need. You can transact in any currency.

You have to define attributes of the currency like currency symbol, formal name, number of decimal places, position of symbol in respect to the figure etc.

You can also enter daily buying & selling rate, on the basis of which the foreign currency transaction value is converted to Base currency for accounting purpose and the loss/gain due to exchange rate is auto computed.

You can enter transaction for more than one currency in one voucher. You can also enter the monetary figure in any currency in the voucher. Tally 9 automatically recognizes the figure in the respective currency and converts into base currency accordingly.

Godowns

2009-09-08T02:52:00.000-07:00

Godowns in Tally

Godown is a place to store Goods which may be a warehouse, Rack, Shelf, Bin or anything. You can use this concept even to process, contractor and third party jobber. If you wish to monitor location wise movement of stock Items and also wish to maintain location wise stock, you may create Multiple Godowns and while recording transactions, specify the location, i.e., Godown.

Tally 9 allows you to create multiple Godowns. Like cost Centres, you may organize Godown into Smaller components and nest into any level. Thus you can logically build Factories, Warehouses, Shed Numbers, Godown Number, Rack Number, BIN number etc.

You can optionally include or exclude the value of stock in any Godown. For example, items received for repair, reprocessing, contract work, Job Work, Scrap etc. may be excluded from stock.

Vouchers in Tally 9

2009-09-08T02:50:00.000-07:00

Voucher Types

Tally 9.0 by default provides 18 types of vouchers (Excluding payroll vouchers introduced in this version) for recording different natures of transactions. You can create your own voucher types.

For example you can classify payment vouchers for Traveling Expenses, Advance, and Payment to Creditors against Purchase. Etc. You can easily generate report for Traveling expense alone.

Voucher Class

What is voucher class?

Voucher class permits you to automate accounting allocations during invoice entry. For example, in sales invoicing you can define the nominal ledger account to be credited for each item of sale, so the accounting credits for items sold, Tax, Freight and other charges are posted to the respective ledgers automatically.

For Sales voucher you can create voucher classes for Cash Sales, Credit Sales, and Export Sales etc.

These permits,

Automatic posting of entries to predefined ledger accounts
Automatic rounding off to preset value limits
Automating other calculations

Optional Voucher

Optional Voucher is a temporary voucher that will not reflect in regular accounts. Once the transaction is authorized and completed you can convert the optional voucher into regular voucher. This eliminates the need to maintain manual records before the transaction is complete.

For example in order to issue a payment you have to create a payment voucher and get the signature from appropriate authorities. Once the payment process is completed you have to enter it in Tally as payment voucher. Using optional vouchers you can create temporary payment voucher that is not counted for accounting and after the actual transaction is completed you can convert it to a regular voucher.

Ledgers in Tally

2009-09-08T02:48:00.000-07:00

Ledger Accounts

Tally 9 by default creates two Ledger Accounts when creating company:

Cash (under Cash-in-Hand Group)
Profit & Loss Account (Direct Primary Account)

Apart from these ledgers you have to create all other ledgers accounts and place them under proper Groups as explained under Accounts Groups.

Cost Centre and Cost Category

Cost Centre & Cost Categories provide us various means to allocate the amount of vouchers of selected ledger accounts, in our own way.

Cost Centres

While accounts ledger provides information about the nature of transaction, it does not identify the departments or divisions involved with it. Cost Centers gives additional dimension to the transaction. Cost center is any unit in an organization to which costs can be allocated. Cost Centers may be various Branches, Departments, Projects, Products, and Persons etc.

We can organize Cost Centers into numerous (Primary & Secondary) levels, in hierarchical structure without any limit.

For example, you have following Ledgers under Revenue Accounts:

Traveling Expenses
Telephone Expenses
Conveyance Expenses

And you have following departments

Sales
Production
Accounts

If you want ledger wise as well as department wise breakup of expense you can create cost centers for each department and while entering such vouchers, allocate to respective Cost Centers. Then you can generate statements,

Ledger account wise
Cost center wise
Cost center wise breakup of each ledger
Ledger Account wise breakup of each cost Center

Stock Group and Stock Items

Stock Groups: Like Accounts Ledger, Stock Items take part in all Inventory Transactions. For better organization of hundreds & thousands of Stock Items that may be stocked & traded in an organization, you may organize them in Stock Groups. The relationship between Stock Item and Stock Group is similar to that of Accounts Ledger and Accounts Groups.

Stock Categories

Normally, Stock Groups will be sufficient for most of the organizations for managing the Inventory Reports in an organized manner. However, some organizations may need an alternative way to find out Items of similar nature. To help them, Tally allows a parallel method to organize the Stock items in Stock Categories.

Stock Items

Stock Items are the actual items that are transacted and take part in any Inventory Voucher. Stock Items are placed under Stock Groups & Stock Categories.

Groups and Ledgers in Tally - PART 2

2009-09-08T02:40:00.001-07:00

Groups and Ledgers in Tally - PART II

Explanation of Groups

Capital Account: Capital Accounts may be directly placed under Capital Group or a sub-group may be created for them. Common example of Ledger Accounts under Capital Account group is Share Capital, Partners’ Capital Accounts, and Proprietors Capital Account. Separate Ledgers may be opened for Equity Capital, Preference Capital A/c etc.

Reserves & Surplus (Retained Earnings): The Group Reserves & Surplus is a sub-group to Capital Account. All Reserve accounts (recognized as Retained Earnings) are placed under this group. Common examples are: General Reserve, Capital Reserve, Investment Allowance Reserve, Share Premium Account etc.

Loans (Liabilities): All loans taken should be placed under this group.
Reserved sub-groups under this Primary Group: Bank Overdraft & Cash Credit (Bank OD), Secured loans and unsecured loans.

Bank OD Accounts (Bank OCC A/c): Normally a business house has two types of bank accounts: Current account and Bank Loan Account (overdraft). While Current A/c should be placed under current Assets the Bank Overdraft and Cash/Credit Accounts availed under Hypothecation, Bill Discounting etc. which are operated on a day-to-day basis should be placed here. Although these are a type of secured loan (loan obtained by furnishing security), they must be placed under the group Bank OCC to allow transactions in payment, receipt and contra vouchers and reflect in Cash Flow statements etc. like normal Bank Accounts. Except that they appear under Loans (Liabilities) head, they are treated similar to normal Bank Accounts under Current Assets. Bank Book is printed for accounts placed under this Group and does not form part of Ledger.

Secured Loans: Term loans and other Medium/Long term Secured Loans, should be put under Secured Loans. Loans taken from Banks, Financial Institutes etc. upon furnishing security, against which normal day to day transaction is not permitted should be placed here. Debentures should also be placed under this sub-Group.

Unsecured Loans: This group normally constitutes a large number of Ledger Accounts and sub-groups. To standardize the management reporting, this primary group has further been subdivided into 3 reserved sub-groups namely,

Duties and Taxes
Provisions
Sundry Creditors

Duties and Taxes: This is for all Excises, Sales and other trade taxes. This head normally constitutes all the duties and taxes that you collect or pay through Sales & Purchase transactions and whose balance will appear in Balance Sheet. Examples: Local Sales Tax

We must distinguish between Duties & Taxes falling under this group and those under Revenue account. Accounts falling under Duties & Taxes Group constitute your Balance Sheet and they are not part of your Sales & Purchase value. For example, Sales Tax, Excise Duty if forming part of Sales or Purchase value should not be placed here. We cite and example to clarify it further:

You sold a computer at Rs. 20000 and charged VAT @ 10% amounting to Rs.2000 making the total of Bill for Rs. 22000. So the Bill,

1 Computer Rs.20000
Vat @ 10% Rs. 2000

Total: Rs.22000

Now you can account for the above entry in 2 ways:

If you credit Rs.20000 to your sales Account and Rs. 2000 to VAT then VAT ledger will be placed under Duties & Taxes Group

If you credit entire Bill Amount Rs.20000 to your sales account, then VAT becomes your expense and the ledger should not be placed under Duties & Taxes Group, instead be placed under Direct Expenses.

Provisions: It is a place for all provisions. Common examples are Provision for Income Tax, Provision for Bad Debts. Place similar Provisions as applicable in your case.

Sundry Creditors: All Trade creditors of the company. i.e. all the parties accounts, with whom transactions are entered through Purchase Vouchers

Fixed Assets: This constitutes all the Fixed assets, Immovable Properties, Patents, Trade Rights etc. Create separate sub-group for Work-in-progress for Capital Projects etc., under this group.

Fixed Assets may have several sub-groups for each type of assets if you wish to have separate Ledger Accounts for Individual asset.

Investment: Place here accounts related to Investments in shares, bonds, Govt. Securities and investment in other companies. Create sub-groups under this primary group, if necessary.

Current Assets: It constitutes of 6 sub-groups as under

Stock-in-hand
Deposits (Assets)
Loans & Advances (Assets)
Cash-in-hand
Bank Accounts
Sundry Debtors

You should place individual ledger accounts under the appropriate sub-groups and try to avoid placing any ledger directly under main Current Assets Group.

Stock-in-hand: It’s a special group and needs careful study & understanding as it is differently treated than normal ledger accounts.

Normally, you should create sub-groups or ledger accounts for Raw Materials, Work-in-process and Finished Goods as required.

Accounts falling under Stock-in-hand group are not permitted any transaction. So you cannot include them in any kind of voucher. In case of non-integrated Accounts, you may enter the value of stock for any date. This figure constitutes the pseudo transaction for closing stock entry and is reflected in the respective reports. Since no transaction through voucher can be passed, these are the only accounts for which the Closing Balance can be entered from Ledger Accounts or by from Balance Sheet or Profit & Loss A/c. For Integrated Accounts & Inventory, these figures are carried from the Inventory Value.

The opening Balance of these accounts give the opening stock of the company, while the closing Balance gives the closing Stock. The Closing Balance under these accounts appears only in the P/L Statement and Balance Sheet.

Deposits (Assets): Place all the deposits (assets) like Fixed Deposits, Security Deposits, Deposits in other companies, Rental Deposits etc.

Loans and Advances (Assets): Place all advances of non-trading nature. Example of advances which should be placed under this group are: Advances against salaries, Loans to Employees etc. Even Advance for work-contracts or supply of fixed assets may be placed here. Loans given by the company should also be placed and you may create separate sub-group for loans, if needed.

Sundry Debtors: Placing all the parties’ accounts who are normally your customers. For recording transactions, the system does not make any distinction between sundry Debtors or Creditors. They are interchangeable at any time allowing you to make purchase and sales transactions through same account. If you are selling and make purchase from same party, you need not open two separate accounts; you can place the Ledger either under Sundry Debtors or Sundry Creditors Group.

Cash-in-Hand: A Cash Ledger account is created by the Tally software by default and placed under this group when you create a company. You can open any number of additional cash accounts or place sub-groups under this.

Bank Accounts: All the Bank Accounts like Current Accounts, Savings Accounts and other Bank Accounts should be placed here (except overdraft account)

Branch / Divisions: This Group may be used for convenience by multi-branch companies for Inter branch reconciliation and consolidation. Create ledgers for all companies which may be Branches, Divisions, Affiliates, Sister concerns, subsidiaries etc. Tally 9 will permit Sales / Purchase transactions with these accounts.

Misc. Expenses (Asset): Preliminary, Pre-operative and similar expenses that have been capitalized should fall under this group. Though the accumulated loss of a company should also fall in this category, Tally 9 treats it as negative profit and carries to Profit & Loss A/c.

Suspense Account: This is a primary Group that appears in Balance Sheet. If you create any Suspense Ledger to record monies paid or received temporarily or who’s nature of transaction if not yet know. For example Advance paid for Traveling Expenses etc. details fro which will be known upon submission of TA bills may be recorded in such ledger. As far as practicable, try to avoid this account and do not be tempted to record anything as it may upset your accounts.

Sales: This is a primary Group, all sorts of Sales should constitute this group. The examples for ledger accounts are

Product lines
Geographical area
Nature
Sales tax nature

The classification depends on the type of information you emphasis upon for your day to day work.

Purchase: Similarly, all sorts of trade Purchases should constitute this Group. You may have multiple purchases Account for Purchases according to:

Product line
Nature (Cash, credit card, credit)
Sales Tax (@ 4%, @ 10% etc)

Direct Income (Income Direct): This primary Group is the place to hold all such Ledger Accounts for Income which will be considered for computation of Gross Profit.

Indirect Income (Income Indirect): Normally, all non-major revenues like receipts on account of Rent, Interest, Commission, Dividend etc should be placed here. These are not considered for computation of Gross Profit but are considered for computation of Net Profit only.

Direct Expenses (Expenses Direct): This primary group holds all Ledger accounts of Direct Expenses. In case of Traders, normally Carriage Inwards should be placed under this group. All expenses which are considered for computing Gross Profit/Loss are to be placed here.

Indirect Expenses (Expenses Indirect): All expenses considered for computation of Net Profit/Loss only should be placed here. For example: Depreciation Account.

Ledgers and Groups in Tally - Part 1

2009-09-08T02:36:00.000-07:00

Ledgers and Groups in Tally - Part I

In manual accounting, accounts (ledgers) are grouped upon preparation of Trial Balance to prepare Final Accounts, namely Profit & Loss Accounts and Balance Sheet, so you don’t get Final Accounts until Trial Balance is prepared. In Tally 9, at the time of creation of Ledger Accounts, you place it under appropriate Account Groups provide you the ability to classify your accounts to get all the statements instantly and properly classified. You can re-group later to suit your requirements.

Tally provides tremendous ability to organize Accounts Ledgers and Groups in a versatile way without any limit on depth of nesting, number of Group and Sub Groups and number of Ledger Accounts that can be achieved with Tally.

Account Groups

By default Tally creates a set of pre-defined Account Groups called Reserved Groups. You can not delete / alter these Groups except the name.

Some of the Reserved Groups are Primary Groups while some are sub-groups to the primary groups. These Groups determine whether the Ledger is a revenue item (effecting Profit & Loss A/C and will appear in the Income or Expenditure side) or capital item (will appear in the Balance Sheet’s Assets or liabilities side). These Reserved Groups are normally sufficient for most of the organizations. However users are free to create any number of Groups and nest up to any level or can also create Primary Group, as required.

Reserved Groups that goes into Balance Sheet:

Liabilities side:

Capital Account
Reserves & Surplus (Retained Earnings)
Loans (Liabilities)
Bank OD Accounts (Bank OCC Accounts)
Secured Loans
Unsecured Loans
Current Liabilities
Duties & Taxes
Provisions
Sundry Creditors

Assets side

Fixed Assets
Investments
Current Assets
Bank Accounts
Cash-in-hand
Deposits (Asset)
Loans & Advances (Asset)
Stock-in-hand
Sundry Debtors
Branch/Divisions
Miscellaneous Expenses (Asset)
Suspense Account

Reserved Groups that goes into Profit & Loss Account

Income side

Sales Account
Direct Income (Income Direct)
Indirect Income (Income Indirect)

Expenses side

Purchase Account
Direct Expenses (Expenses Direct)
Indirect Expenses (Expenses Indirect)

Data Backup and Restore in Tally

2009-09-08T02:25:00.000-07:00

Backup – Restore in Tally 9

Backup and Restore is vital for any computer application. There are many possibilities for loss of data. This include power failure may damage hard disk, Natural disasters like fire; cyclone etc. can physically damage the computer and data. So we need a backup mechanism. Tally implements a powerful Backup / Restore feature.

In Tally Backup and Restore are given. We can backup the data to floppy disk or hard disk.

Before making backup you have to shut all open companies. Enter ALT + F1 to shut companies.

Now select Backup

Source: This is the original location of Tally Data folder. Tally will select it automatically.

Destination: This is the folder you want to save backup copy. Type the location you want. For example, D:\TallyBackup

Now select the companies you want to backup.

Give Y to accept and Tally will backup the data.

It is good practice to copy the backup data to optical media like CD-ROM / DVD-ROM and keep it in safe place. You can reuse these medias many times with multi session writing option available with NERO.

RESTORE

Similarly you can restore company from backup copy.

Configuring Tally

2009-09-08T02:22:00.000-07:00

Tally Configuration with INI file

Tally stores its configuration and startup details in Tally.INI, windows configuration file. You can edit the INI file to configure Tally to suit your environment.

Data = C:\Tally\Data

This tells Tally that you want to save data in “c:\Tally\Data\” Folder. You change this folder to other hard disk partition or even in network shared folders. It is not recommended to save data in C drive which commonly holds windows system files. In the event of corruption of C drive partition you will loose data. For network share give,

\\Computer Name\Share name

Default Companies = Yes

This will tell Tally that it should Load default companies on startup. If you want no companies to be loaded when you open Tally give ‘No’

Load = 10000

This will tell Tally which company to be load during startup. The number 10000 denotes first company. Companies have numbers 10001, 10002 and so on. You can load more than one company during startup. Give Load = 100001 to load the second company in the next line.

Color = Yes

If you don’t want color give Color = No. Tally 9 will have black and white screen

Custom Accounting Software

2009-09-06T20:08:00.000-07:00

Customized Accounting & Invoicing Software

Tired of using Tally? Limited by its features? Want to implement customized features. Call us for a personalized software, specific for your company. We are experienced software consultants focusing on small business software solutions. We offer small business Accounting, Payroll, Inventory and Billing software solutions. If you want an alternate for Tally Software you can contact us for a quote.

Our team of professionals are well versed in Microsoft Technologies like ASP. NET, VB .NET and SQL Server. Our solutions can be integrated with Microsoft Office Packages like MS-Word and Ms-Excel.

We also provide on-site support for Computer Hardware and Software with in entire Tamilnadu.

Service & Troubleshooting

2009-09-06T20:01:00.000-07:00

Tally Service & Troubleshooting

I am glad to announce that Tally Tutorial Online has decided to provide online service for Tally users. We can help you in various Tally Related tasks like installation, troubleshooting, start-up for new Tally users, Accounting and Book-Keeping Training and so on.

Your service request will be answered quickly and our representative will provide online help with tools like 'Team Viewer'. You are required to pay a small fee towards the service. We offer Tally help in Tally versions 4.5, 5.4, 7.2 and 9.0. If possible you can attend our classroom training available at Coimbatore. You can contact: sundaracm@gmail.com

Privacy Policy

2009-09-03T19:15:00.000-07:00

Privacy Policy for tallytutorialonline.blogspot.com

If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at sundaracm@gmail.com.

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If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.

2009-08-31T04:13:00.000-07:00

FINAL ACCOUNTS

Trading account

This account is prepared to know the trading results of the business. i.e. how much gross profit the business has earned from buying and selling during a particular period. The difference between the sales and cost of goods sold is gross profit.

Profit and loss account

This account is prepared to calculate the net profit or net loss of the business. There are certain items of incomes and expenses of the business which must be taken into consideration for calculating net profit of the business.

Balance sheet

A balance sheet is a statement prepared with a view to measure the financial position of a business on a certain fixed date. The financial position of the concern is indicated by its assets on a given date and its liabilities on that date. A Balance sheet is also described as a statement showing the sources and application of capital. It is a statement and not an account.

The liabilities are shown on the left hand side. The assets appear on the right hand side. On the liabilities side, capital and other liabilities to third parties are shown. Since business is different from the businessman, capital is the amount payable to the businessman by the business. So, capital is shown on the liabilities side. On the asset side, cash and anything which is convertible into cash are shown as assets. The totals of the liabilities side and asset side must agree.

2009-08-31T04:11:00.000-07:00

Rectification of errors

Error is a mistake done in book keeping. The mistake may be done while entering the transactions in the subsidiary books or while posting in the ledger accounts. It becomes of utmost important for the book-keeper and the accountant to locate such errors and rectify them. So that correct profit and financial position of the concern may be ascertained.

Types of errors

1. Errors of principle

An error of principle is an error committed disregarding the fundamentals of book-keeping. An error of principle take place in the following cases.
Treating and expense as an asset – Amount paid for repairing the machinery may be debited to Machinery A/c instead of Repairs A/c
Treating as asset as an expense: Purchase of furniture for office use may be debited to office expenses A/c instead of Furniture A/c
Treating an income as liability: For instance, commission Rs. 10000 received from ABC & Co. may be credited to ABC & Co. A/c instead of commission A/c.

Clerical Errors

Error of omission

Error of omission may be either complete omission or partial omission. A partial omission is making entry in the subsidiary book but not posting in the ledger. When a transaction is completely omitted from the books, it is called complete omission.

Error of commission

It is another type of clerical error. This type of error take place in the following ways;

Errors relating to subsidiary books, they are

Entering wrong amount in the subsidiary books
Entering the transaction in a wrong subsidiary book
Wrong totaling of subsidiary books (Tally won’t do this mistake!)

Errors relating to postings they are

Posting wrong amount on the correct side of an account
Posting the same amount twice to an account
Posting the correct amount tot the wrong side of the correct account
Posting the wrong amount to the wrong side of the correct account
Posting the correct amount to the wrong account but on the correct side.
Posting correct amount to the wrong account and on wrong side.
Posting wrong amount to the wrong account and on the wrong side.
Error in Balancing.

Note: Most of these errors are avoided when using Tally software.

Compensating Errors

These are errors which make up for one another. This means one error canceling the other. For example, a wrong debit may get cancelled by wrong credit.

Rectifying the Errors

Errors are always corrected in the books of accounts by means of suitable journal entries. If the correction involves transfer of an amount from one account to another, a journal entry is given. If it is not so, the concerned account may be corrected by debiting or crediting the amount to be corrected.

Suspense Account

There are errors which affect the agreement of the debit balances and credit balances. When such errors are committed, the trial balance does not agree. In such cases, the suspense account is opened. If the debit balances are short, then suspense account will have debit balance and vice versa.

2009-08-31T04:09:00.000-07:00

Subsidiary books

In small business firms, the volume of transactions is also small and hence, all of them can be recorded in one subsidiary book namely, the journal. But in large business houses since the number of transactions if large, it is impossible to enter them in one subsidiary book. Therefore, it is desirable to sub-divide the transactions according to their nature. And it is customary to keep each division of transactions in one book. The book in which the transactions are entered at first time are known as subsidiary books.

Kinds of subsidiary books:

Cash book to record cash receipts and payments.
Purchase book for recording credit purchase of goods.
Sales book or day book for recording all goods sold on credit
Purchases Returns book for recording all goods sold on credit.
Purchsess Returns book or Returns outwards book for recording all purchses returned to the creditors.
Sales returns book or Returns Inwards book for recording all sales returned by the custoemers.
Bills receivables book to keep record of bills received from customers.
Bills payable book to keep record of bills payable to creditors.
Journal proper to keep a record of those transactions for which there is no separate book.

2009-08-31T04:03:00.000-07:00

Journal, Ledger and Trial Balance

The stages in book-keeping are,

Recording the transactions in subsidiary books or books of prime entry
Posting the entries into the appropriate accounts in the main book called ledger.
Preparing the Trial balance, thereby profit and loss account and Balance sheet.

Journal

Journal is derived from the French word “Jour” which means a day. Journal, therefore, means daily record of business transactions. Journal is a book of original entry because transactions is first written in the journal from which it is posted to ledger at any convenient time.

Ledger

The ledger is the main book of account. The Journal is a subsidiary book. The word subsidiary means ‘giving additional help to.’ The journal helps a businessman to take the various transactions to the right place. i.e. to the appropriate accounts. The journal is the base, the ledger is the middle. The Balance sheet and Profit and loss account can be prepared from the main book of account, namely Ledger.

The entries are posted under appropriate accounts. All similar transactions must be brought together. Transactions relating to cash are grouped under cash account. Similarly the transactions with customers and suppliers (debtors and creditors) are grouped under appropriate personal accounts. Ledger is the main book of the business containing personal, Real and Nominal accounts of the business.

Trial Balance

The balances standing in the various accounts in the ledger at the end of a period are listed down in the form of a statement, showing debit balances in one column and credit balances in the other, known as a Trial balance.

The Trial Balance is nothing but a summary of the various transactions entered in the books of accounts and its preparation is based on the rule that ‘for every debit there is a corresponding and equal credit’.

Trial balance is automatically Calculated in Tally!

2009-08-31T03:58:00.000-07:00

Financial Accounting

Financial accounting is concerned with recording and processing all transactions with outsiders and events affecting the financial position of the firm. This leads to the preparation of the annual profit and loss account and the balance sheet.

Double Entry System of Accounting

Accounting records can be prepared under any on of the following systems

a) single entry system

Under this system only the personal aspects of the transactions are recorded in the books and the impersonal aspects are ignored. It is not based on the ‘dual’ aspect concept and is incomplete, inaccurate and unscientific.

b) Double entry system

It is the most common system of keeping records whereby the two aspects of every transaction – the giving aspect and the receiving aspect are recorded in the books of accounts. Each aspect will be recorded in one account and this method of writing every transaction in two accounts is known as Double entry system of book keeping. This is the most scientific, complete and accurate system of accounting.

Advantages of double entry system

It provides a complete record of every transaction whether it relates to the personal or impersonal accounts.
It provides an arithmetical check on the records as the total of debit entries must be equal to the total credit of all entries.
The amount owing to outsiders and the amount due to the business can be ascertained with the help of personal accounts.
The profit and loss account can be prepared with the help of nominal accounts which is helpful to the business to ascertain the operating results of the business.
It helps to prepare the balance sheet of the business which is helpful to ascertain the financial position of the business on a particular day.
It helps to reduce the occurrence of the errors and frauds and when occurred can be deducted easily. It can work with the help of internal check system.

Disadvantages of double entry system

This system requires the maintenance of a number of books of accounts which is not practical in small concerns.
The system is costly because a number of records are to be maintained.
There is no guarantee of absolute accuracy of the books of account in spite of agreement of the trial balance.

Accounting Terms

Assets are the properties owned by a trader, kept for using them for business purposes.
Liabilities are debts owing to others by the trader.
Capital is a liability of a business due to the proprietor. It represents the owners fund employed in the business.
Transaction refers to the transfer money or money’s worth from one account to another account.
Goods refers to the commodities bought by the trader for the purpose of resale
Fixed assets are the properties kept by the owners of a business firm for use in business and not for resale. For example land, building, plant, fixtures, equipments and so on.
Current assets are the assets meant for conversion into cash. For example stock in hand, debtors, cash in hand and at bank and so on.
Account is a summary of transactions affecting a person, an asset, profit or loss etc.,

Debtor and Creditor

Debtor is a person who owes money to the business
Creditor is a person to whom the business owes money.

Debit and Credit:

Every transaction, at least affects two accounts in the opposite directions. The account which receives the benefit is debited and the account which gives the benefit is credited.

Journal is a book of first entry. Business transaction are recorded first in the journal as and when they take place. Then, they are recorded in the ledger accounts.

Journalizing is the act of entering the transactions in the journal.

Ledger is the main book of account. It contains all the accounts of business in well arranged form.

Posting refers to the entering the transactions in appropriate ledger accounts.

Trial balance is a list of ledger balances as on the last date of accounting period. If the total of debit balances and that of credit balances are equal, then it is understood that recording are done in all the books correctly and accurately.

Rules for Debit and Credit:

Personal accounts: Debit the receiver, Credit the giver

Real accounts: Debit what comes in, Credit what goes out

Nominal accounts: Debit all expenses and losses, Credit all incomes and gains

Personal Accounts:

These accounts record a business dealing with persons or firms. The person receiving something is given debit and the person giving something is given cedit.

Real Accounts:

These are the accounts of assets. Assets entering the business is given debit and asset leaving the business is given credit.

Nominal Accounts:

These account deal with expenses, incomes, profits and losses. Accounts of expenses and losses are debited and accounts of incomes and gains are credited.

2009-08-31T03:57:00.000-07:00

Tally ERP 9, Free Training by GENESIS

GENESIS is the Tally Authorized training center for the Tally Accounting package. They are located at Saibaba Colony, Gandhipuram, Peelamedu, Avinashi, Tirupur, Pollachi, Ooty and udumalpet.

Contact for more details: 044-25522222

2009-08-27T04:58:00.000-07:00

Tally Payroll Tutorial - Part IV

Tally Payroll Tutorial - Part III explained how to generate payroll with attendance and production entries. Now you will see how to print pay slip for individual employee or group of employees.

To print pay slips go to Multi Account Printing -> Multi Payslip printing.

Select No for the ‘Yes’ or ‘No’ prompt.

You can give from, to dates, which employee or group of employees to be printed and other options. Ok. This is the last part of Tally Payroll Tutorial. I have covered the basics. I will give advanced payroll management and Video Tutorial in future. So keep Visiting. :)

Tally Payroll Tutorial Part III

2009-08-27T04:47:00.000-07:00

Tally Payroll Tutorial Part III

In Tally Payroll Tutorial Part II you created required masters to create payroll vouchers. You were introduced to Payroll masters, how to create pay heads, Employees, Salary Details, Units, Attendance / Production Types. Now it is time to generate your first payroll. We will continue the case study

Given are the attendance / production details for the 4 employees for two different dates.

Date : 20-aug-2009

1. Sundar - 50 mtr production
2. Ponnusamy - 75 mtr production
3. Karthi – .5 days
4. Suresh – 1.0 days

Date : 21-aug-2009

1. Sundar - 65 mtr production
2. Ponnusamy - 60 mtr production
3. Karthi – 1.0 days
4. Suresh – 1.0 days

Got Payroll vouchers

Select Attendance button

Press F2 to change current Date to 20-aug-2009

Select Attendance Auto fill (CTRL + A)

Select ‘Pcs Rate Employee’ Group
Select ‘Cloth Produced’ Production Type
For Ponnnusamy Give 75 mtr and for sundar give 50 mtr and accept to save.

Again select Attendance Auto fill
Select ‘Daily Wage employee’ Group
Select ‘Attendance’ as type
For Karthi give 0.5 days and Suresh Give 1 day and accept to save

Similarly change date to 21-aug-2009 and give above values for that date

Now you have created 4 Attendance vouchers.

Now click Payroll button (CTRL + F4)

Click Payroll Auto fill (ALT + A)

From: 20-08-09
To: 21-08-09
Employee / Group: All Items
Pay Ledger: Cash (You can create Bank Ledger and select it)
Enter

Voila! Payroll is generated for all employees.
Accept and Save

Take a cup of coffee and relax!

We have learnt to create Basic Payroll. You can create any number of employees, Group them under any department / function like Accounts, Sales, Marketing, Security, Logistics, Stores anything you like. There are advanced concepts in Tally payroll like Gratuity, Advance, Bonus, and Reimbursement. First master the basic concepts of Tally 9 payroll and come to advanced topics. If you want to print payroll visit learn how to print Tally Payroll payslip in part IV of the tutorial

2009-08-27T04:25:00.000-07:00

Tally Payroll Part II

In Tally Payroll Tutorial - Part I we see the masters vouchers for payroll. Now we will see how to create them with a case study example:

Consider a manufacturing company the produces cloths (for example, powerlooms producing Gad cloths).

There are two kinds of employee on the company’s payroll

1. PCS Rate wages (based on the production done)
2. Daily wages (Fixed flat rate)

For example the following two employees works on PCS Rate

1. Sundar - Rs. 2.50 per Unit
2. Ponnusamy - Rs. 2.75 per Unit

The following two are paid daily

1. Karthi – Rs. 150 per day
2. Suresh – Rs. 175 per day

Now you have to create payroll for them using Tally. How can you do? It is very easy. Here are the steps you need to follow:

Firs you need to create pay heads in Payroll master.

We need two pay heads:

1. Wages Daily (For Daily Flat wage employees)
2. Wages PCS Rate (For PCS Rate employees)

Before creating Pay Head you need to create Attendance / Production Types
Before creating production Types you need to create work unit

Go to -> Units (Work)
Select Create
Give Symbol: Mtr (for cloths manufacturing, it depends on company)
Format Name: Meter
Number of Decimal places: 1
Give Y to Save
This is used to pay head for production based pay

Similarly create another unit with Days as symbol name

Now select 'Attendance / Production Type' under Payroll Info
Select Create

Name: Cloths produced
Under: Primary
Attendance Type: Production
Unit: Mtr

Similarly Create another with

Name: Attendance
Under: Primary
Attendance Type: Attendance / Leave with pay
Period Type: Days

Now go to pay heads

Select Create

Name: Wages by Attendance
Page Head type: Earnings for Employees
Under: Direct Expenses
Appears in pay slip: Yes
Calculation Type: On Attendance
Attendance / Leave with pay: Select ‘Attendance’ (We just created before)
Calculation Period: Days

We just created one pay head. Create another

Name: Wages by PCS Rate
Page Head type: Earnings for Employees
Under: Direct Expenses
Appears in pay slip: Yes
Calculation Type: On Production
Attendance / Leave with pay: Select ‘Cloth Produced’ (We just created before)

Now you create employees and Employee Groups

Create two employee Groups
1. Daily Wages Employees
2. PCS rate Employees

Create employees:

Karthi and Suresh in ‘Daily Wages Employee’ Group
Ponnusamy and Sundar in ‘Pcs Rate Employee’ Group

Now go to ‘Salary Details’ under Payroll Info

Select Create
Under Employee / Group select ‘Sundar’
Under pay head select ‘Wages by Pcs Rate’ and under rate give 2.50, under per give mtr

Accept and give yes

Similarly for ponnusamy give 2.75

Now select karthi and select ‘Wages by attendance’ for pay head and give 150 per day
Similarly for suresh give 175 per day

Great! You are finished with masters. Lets go to Transactions in Tally Payroll Tutorial - Part III

Tally Payroll Part I

2009-08-27T04:16:00.000-07:00

Tally Payroll Tutorial - Part I

Tally 9 offers payroll for wages and salary to workers and employees. The payroll is not enabled by default while you create the company. To enable it press F11 to open ‘Accounting Features’ screen.

Under Cost/Profit Centers Management, you will find Maintain Payroll. Give yes and press ESC to exit.

Now, in Masters Menu there is a new sub-menu 'Payroll Info', and in Transactions Menu ‘Payroll Vouchers’

In the Payroll Info menu there are Sub menus

Pay Heads
Employee Groups
Employees
Salary Details
Units (Work)
Attendance / Production Types
Voucher Types.

You need to create employees for the ‘Salary Details’ menu to be enabled.

Pay Heads

First you need to create the pay heads. Pay head creation is essential as it is used in payroll ledger and Payroll voucher entry. Creation of pay head is done by clicking Pay Heads and clicking Create. Give a name for pay head for example, ‘Production Wages’

In the Pay Heads Type below select appropriate Type. The following are available

Deductions from Employees (For deductions create this pay head)
Earnings for Employees (For wages / salary create this pay head)
Employees' Statutory Deductions (For ESI and other create this)
Employer's Statutory Contributions
Gratuity
Loans and Advances (For Advance and Loan payments create this)
Reimbursements to Employees

It is obvious that for different payments create different pay heads. For deductions from advance create ‘Advance Deductions’ under type Deductions from Employees, and for Production Wages select type ‘Earnings fro Employees’.

Calculation Type

There are four calculation Types:

As Computed Value
As User Defined Value
Flat Rate
On Attendance
On Production

I don’t want to complicate with all these types. For now we will see how to create employees and enter their attendance / production details and take payroll.

Now follow me to Tally Payroll Tutorial Part II

2009-08-25T08:02:00.001-07:00

Your 24 hour Tally Assistant

recently realized the need for online support for this beautiful accounting software. As a computer programmer and software consultant I understand the needs for Tally users. I just started this blog 'Tally Tutorial' only on 25th August 2009, and have made only few posts. I am getting queries for Tally Audit, Tally 4.5 troubleshooting, Tally TDL, Learn Tally for beginners and the like.

I understand that a huge task is behind me. Since 1990s Tally has released versions 4.5, 5.4, 6.3, 7.2, 8.1 and 9.0. Covering all these versions is really a daunting task. I am determined to work hard.

This tutorial will cover from basics to advanced usage of Tally, Installation, error handling, troubleshooting, backup, import - export, multi user and so. Step by step tutorials in the form of lessons will be provided. So keep visiting this site to learn and master Tally, the power of simplicity.

2009-08-25T06:21:00.000-07:00

Tally Audit Tutorial Part II

In part I you learned how to enable and use Tally Audit Feature to track changes in entries. Now you understand how to Display Audit list and make corrections.

Tally Audit Listing will offer all voucher entries/ changes in past 30 days. You either select a particular voucher and click Accept one or click Accept All to accept all voucher this will remove the entries from Audit list.

2009-08-25T05:44:00.000-07:00

Tally Audit Tutorial

Tally Audit provides the capability to the administrator/auditor to track changes in the accounts following his previous review. Changes of two areas are important – changes in transactions or vouchers and changes in ledger masters. Only material changes are considered, i.e., a change in the narration does not affect the integrity of a transaction, hence it would not be considered as changed. Any other change in a voucher is material and would be logged. The name of a ledger account if changed, it is material, hence it would be tracked. So also a change in the opening balance of a ledger master.

TallyAudit feature should be enabled while creating the company and authority lists. Only a user designated as an auditor or the administrator can view the audit list and act upon it. Tally tracks all changes made to vouchers that are more than 30 days old. Hence, changes to vouchers that are less than 30 days old are not reported. This is to allow adequate time to correct mistakes. A change includes insertion of new transactions or accounts.

You are not required to make any additional input of data. The authorised user simply needs to display TallyAudit lists and may print out the lists. If he is satisfied with the authenticity of the changes, he accepts the changes either selectively or all of them (by clicking on the relevant button). Once the changes are accepted, they are removed from the audit list and would not be available again. If, however, a change is repeated, it is reflected in the audit list.

Do you understand now What is Tally Audit?

Yes. It prevents frauds and cheats by any means. If amounts are changed in voucher entries after 30 days the change will be reflected in Audit list. An Auditor / admin can find these changes and he is satisfied he can remove them from the list. That is plain.

How to enable Tally Audit?

This is done in Company Creation / Alter Menu. Just open this screen and you will find

'Use Security Control' option. Select 'Yes' and it will ask for Administrator name and password. Give them and give yes for 'Use Tally Audit Features'.

To View the Audit List go to Display -> Statement of Accounts -> Vouchers -> Tally Audit

To view Audit you must have logged in as Administrator user account created in the company information page.

I will discuss advanced security in forthcoming posts. Tally Audit part of these security features available in Tally.

Tally 9 Features II

2009-08-18T22:19:00.000-07:00

positioning of Accounts Masters in Report:

Tally 9 is primarily a codeless system and as such when a new ledger or Group is created, it appears alphabetically within the parent Group. Though it is fine and acceptable in normal cases, you may find it inconvenient in certain cases. To make the things straight, Tally Provides a concept of Position Index that allows you to place any item in the Reports at your desired sequence, instead of alphabetical order. However, the position Index is not Report specific, so it may conflict in the desired arrangement between the Reports. Still, with proper planning, you may expect to get almost as desired

Bank Reconciliation:

Tally 9 provides Bank Reconciliation but it is not exactly what we normally understand by the term BRS (Bank Reconciliation Statement). Tally 9 gives some rudimentary facilities to help you track the cheques with the clearance in Bank Pass Book. Helpful for Statutory Auditors to track down clearance of cheques at a later period, to build up the BRS.

Interest computation:

Tally 9 has many features for various methods of Interest computation. You can configure the options in your own way and get interest computation statement on overdue Bills, Loan etc.

Tally 9 even provides penal & variable Interest rates. It also allows special periods like 30 day month etc, to meet traditional interest computation, still in vogue in Marwari Accounting method.

However, you may not be able to compute Interest on Bank Cash Credit & Overdraft account as Interest is computed on balance as per books of your banker. Due to time lag between issue of cheque and its clearance by Bank, the daily balance will normally differ from the bank Pass Book. Tally 9 does not automatically take into consideration the date of clearance of cheque from the Bank Reconciliation, for the purpose of Interest Computation

Group Companies

To get consolidate report of a Group of Companies, you can link up several companies and place under a Group, making it more convenient to automatically get consolidated reports for the Group.

Query Builder

Tally 9 provides a good Query Builder to work with Display with easy to understand Query sentences / phrases to club several queries. Though so many options may seem daunting, with little practice, any user will be able to understand its implications and use the queries effectively. Query Builder is covered comprehensively in this Tally Tutor.

Tally 9 Features I

2009-08-18T21:52:00.000-07:00

Comprehensive Accounting:

Maintains complete range of Book of Accounts, Final Accounts like Balance Sheets, Profit & Loss Account statements, Cash and Fund Flows, Trial Balances and others.

Receivalbes & Payalbes:

Provides multiple Reports in diverse formats : classified, grouped. You can also specify ageing slab and can send Reminders (Text of Reminders can be customized)

Interest Calculation:

Various options for Interest Calculation

Multi-Location Stock Control and Multiple UOMs:

Tally 9 can maintain single-location or Multi-location stocks. Multiple Units of measure for each item.

Unlimited cost / profit centers:

Unlimited sub-classifications to get multi-dimensional analysis and comparatives.

Unlimited Companies and Periods of accounting:

Allows accounts of multiple companies at the same time. You can compare, Consolidate Several companies together.

Financial year:

Financial year may span any period

Multi-Currency Accounting:

Multiple currencies in the same transaction and viewing all reports in one or more currency.

Sales & Purchase Orders:

Tally 9 offers comprehensive reports giving current stocks along with order status.

Budgeting, Auditing and Security control:

Unlimited budgets and periods, user definable Security Levels for access control, and Audit capabilities to track malafide changes.

Quotations, Orders, Invoices, Vouchers and Cheques:

Prints online. Several options for configuring default format

Import / Export of Data:

Allows Import / Export of Data from / to other systems.

Here are some elaborations of some of the important features.

Accounts Organization : Ledger Accounts and Groups:

Tally 9 provides good ability to organize accounts ledgers and Groups in a versatile way without any limit on depth of nesting, number of Group and Sub Groups and number of Ledger accounts that can be placed under any Group.

Apart from the pre-defined Reserved Groups, you can create new groups that may be Primary or sub-group to any existing Group / sub-group.

Control Ledger Groups

Tally 9 does not have any concept of Sub Ledgers. Through its ability to nest Groups & Ledgers, you are able to organize the accounts quite efficiently. However, you may need to create several hundred ledgers which may clutter the Final Accounts. To simplify this, you may specify any Group as Control Account. In that case, Tally will show the control totals and clubbed figures of the underlying ledgers, while providing individuals transaction & balance of each individual Ledger.

Posting Closing Stock Value in Accounts:

Integrated Accounts and Inventory:

Tally provides option to post stock value from Inventory directly to Balance Sheet & Profit and Loss A/c., as per the valuation method specified by user. This greatly simplifies the procedure and you get the Final Accounts which is in tune with the Stock statements of the Inventory System.

If you are maintaining only Accounts, then Tally provides you option to enter the value of closing stock for any specified date. The system is flexible and you do not need to create any Journal Voucher. It automatically picks up the closing stock value of the corresponding date and you can print Balance Sheet and PL account of any date at a keystroke.

Non-Integrated Accounts and Inventory:

When you wish to maintain Inventory but do not wish to link it with Accounts, you do everything in the same manner as you do in Integrated Accounts & Inventory, the only difference being that you are allowed to enter your own value of closing Stock, which gets reflected in Balance Sheet and Profit & Loss Account.

Tally Shorcuts

2009-08-18T00:57:00.000-07:00

Tally provides shortcut keys / hot keys to select menu. You can press a single letter on the keyboard to Access these menus. For example to Access 'Accounts Info' Menu in Masters you can press the 'A' key in the keyboard. Likewise to open 'Inventory Info' press only 'I' key.

These keyboard shortcuts in Tally are highlighted with different color (Red by default) than rest of the text.

To access the right side menu:

F1 : Select Company
Alt + F1 : Shutdown Current Company
F2 : Change Date
Alt + F2 : Change Period
F3 : Change company (This is enabled only if multiple companies are selected)
Alt + F3 : Company Info menu

In Accounts Voucher Mode:

Alt + F1 : Inventory Buttons (Stock & Inventory Related Vouchers)
F2 : Change Date
F3 : Company Selection
F4 : Contra Voucher
F5 : Payment Voucher
F6 : Receipt
F7 : Journal
F8 : Sales
Alt + F8 : Credit Note (If enabled)
F9 : Purchase
Alt + F9 : Debit Note (If Enabled)
F10 : Reverse Journal
Alt + F10 : Memos

In Inventory Voucher Mode:
F1 : Accounts Buttons (Will show accounts vouchers)
F2 : Date
F3 : change company
Alt + F4 : Purchase Order
Alt + F5 : Sales Order
Alt + F6 : Rejections Inward
Alt + F7 : Indent
Alt + F8 : Delivery Note
Alt + F9 : Receipt Note
Alt + F10 : Physical Stock entry

F11 : Features (Will be handled in separate lesson)
F12 : Configure (Will be handled in separate lesson)

Who this Tally Tutorial is For?

2009-08-18T00:05:00.001-07:00

Students who want to learn Tally. Students of commerce and accounts long felt the need of online training material for Tally. This blog will help such students who aspire to make their career in computerized accounting.
Users of Tally Who can put the software into better use. Even experienced Tally users will fin many useful undocumented features, to leverage the power of Tally.
Existing user of Tally who could not implement Tally in their own typical requirements.
New buyers of accounting software. It will tell that Tally can do and what it can not.
Advanced users of Tally who want to know about Tally Definition Language (TDL)

Tally - Introduction

2009-08-17T23:21:00.000-07:00

Tally Tutor

Tally is the most popular financial accounting software in India and abroad. Tally Tutorial is all about Installation of tally on your computer, voucher entries, ledger creation, reports and troubleshooting of Tally. Because of it ease of use, simplicity, user friendly and reliability it has gained fame among the Chartered accountants, Auditors and other financial Institutions. Tally Tutor is your one stop companion for Tally software.

Version Histories.

The Initial Release of Tally was Tally 4.5 version. This is DOS (MS-DOS) based software released in the begining of 1990's. It had Basic Financial Accounting / Book Keeping Tools. Personal computers had gaining popularity in India those days. Peutronics ( The company that develops Tally) used this opportunity and put their Tally Version 4.5 on the market. Auditors and Accountants who used to maintain large volumes of hard-bound notebooks were amazed at the ability of Tally to calculate Balance sheets and Profit Loss accounts within seconds. All you need to do is just create Ledgers and enter vouchers. Tally will do the rest. It will create all the statements, Trial Balance and Balance Sheet For you.

The subsequent Tally releases are Tally 5.4, Tally 6.3, Tally 7.2, Tally 8.1 and Tally 9.0. These release Include support for Inventory used to stock maintenance of the company, Payroll which used to employee salary calculation and wages payments and Multi Lingual support in Many Indian languages Hindi, Tamil, Telugu, Kannada, Malayalam, Gujarathi, Marathi and more.

Almost every company small business to big enterprise use Tally for their accounting purpose. They want employees Trained in Computer usage and Tally. Traditional Book keeping methods have been completely replaced in India. Some small companies use customized software like invoicing software Integrated with Accounting.

I have developed such a software using Microsoft .net platform. The software has Modules for Customer, Supplier, Products and Transaction Modules for Purchase Order, Purchase, Sales, Sales Return, invoicing & Billing. The bills get automatically posted to Accounting Module where you can generate statements and reports.

Ok. Come to Tally. I will give you all the help to Learn Tally Online. These Tutorials will cover from basic to Advanced Modules of Tally. Lessons are given in simple and easy to understand language.

Hope this will help you in Job Opportunity in Tally.

I am Based at coimbatore. If you want Tally Training I can come In person to train you at home or office. If you want a custom software for Billing, Point of Sale, Invoicing, Inventory management, payroll or other software solutions you can contact me at sundaracm@gmail.com

I wish you every success in your career with Tally Tutorial.