1Tally 9

Accounting Fundamentals Basics of Tally Configuration Creating Groups and Ledgers Vouchers Advanced Features Reports Inventory Storage and transferring of items Vouchers with Inventory Inventory reports Advanced reports

2Tally 9

Accounting is a science of recording classifying and summarizing of business transaction ,done on the basis of certain principles such as principles of Double Entry System, which are universally applicable.

Accounting is based on certain concepts and conventions and is subject to some limitations. It is influenced by bias and personal judgment of the accountant.

3Tally 9

Financial Accounting: It is the original form of accounting. It is

mainly confined to the preparation of financial statements for the use of outsiders like creditors, banks and financial institutions etc. The chief purpose of financial accounting is to calculate profit or loss made by the business during the year and exhibit financial position of the business as on a particular date.

Cost Accounting: Function of cost accounting is to ascertain the

cost of the product and to help the management  in the control of cost. 4

Tally 9

Management Accounting or Managerial Accounting:

It is accounting for management. i.e., accounting which provides necessary information to the management for discharging its functions. It is the reproduction of financial accounts in such a way as will enable the management to take decisions and to control various business activities.

5Tally 9

The main purpose of financial accounting is to prepare financial reports that provide information about a firm's performance to external parties such as investors, creditors, and tax authorities. Financial accountingis performed according to Generally Accepted Accounting Principles (GAAP) guidelines.The primary accounting professional association in the U.S. is the American Institute of Certified Public Accountants (AICPA).

6Tally 9

Businesses have two primary objectives: Earn a profit Remain solvent Solvency represents the ability of the

business to pay its bills and service its debt.

The four financial statements are reports that allow interested parties to evaluate the profitability and solvency of a business. These reports include the following financial statements:

Balance Sheet Income Statement Statement of Owner's Equity Statement of Cash Flows 7

Tally 9

Double Entry Accounting Financial accounting is based on double-entry bookkeeping procedures in which each transaction is recorded in opposite columns of the accounts affected by the exchange. Double entry accounting is a significant improvement over simple and more error-prone single-entry bookkeeping systems.

Fundamental Accounting Model The balance sheet is based on the following fundamental accounting equation :

Assets  =  Liabilities  +  Equity(owners) This model has been used since the 18th century. It

essentially states that a business owes all of its assets to either creditors or owners, where the assets of a business are its resources, and the creditors and owners are the sources of those resources.

8Tally 9

Step1Journal : Transactions on daily basic are first

recorded in book known as journal. Step 2Ledger : Than these transactions are grouped by

transferring to concerned accounts known as ledger accounts. The process of transfer is known as posting.

Step 3Trial balance : At the end of period ledger

accounts are balance and a summary is prepared known as trial balance

Step4Profit & Loss : From trial balance the profit and

loss is ascertain by preparing final statements.

9Tally 9

Step 5Balance sheet : After that balance sheet

is prepared which is the statement that shows the value of assets and liabilities as on a particular date

Step 6Continuity : The balance of Balance

sheet carried forward to next year and whole process repeat for the year.

10Tally 9

Keeping systematic records Protecting properties of the business Communicating the results Meeting Legal Requirements To ascertain the financial position of

the company To facilitate rational decision-making

11Tally 9

Recording Classifying Summarizing Analyses and Interprets Communicates Protection of the business property

Tally 912

Maintenance of business records Preparation of final statements Helps in comparison of results Helps in decision making Good evidence in court Planning and control of operations Provides information to interested

person Helps in raising loans Valuation of business Helps in complying taxation matters

Tally 913

Ignores non monetary items Based on estimates Personal influence Historical cost Fails to provide timely information

Tally 914

Accounting is based on 5 basic account types:  Assets  Liabilities  Equity  Income and  ExpensesBalance Sheet AccountsThe three so-called Balance Sheet Accounts are Assets, Liabilities,

and Equity. Balance Sheet Accounts are used to track the changes in value of things you own or owe.

 Assets is the group of things that you own. Your assets could include a car, cash, a house, stocks, or anything else that has convertible value. Convertible value means that theoretically you could sell the item for cash.

 Liabilities is the group of things on which you owe money. Your liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time.

 Equity is the same as "net worth." It represents what is left over after you subtract your liabilities from your assets. It can be thought of as the portion of your assets that you own outright, without any debt. 15

Income and Expenses AccountsThe two Income and Expense Accounts

are used to increase or decrease the value of your accounts.

Income(Revenue) is the payment you receive for your time, services you provide, or the use of your money.

 Expenses refer to money you spend to purchase goods or services provided by someone else.

Tally 916

Debits and CreditsThese are the backbone of any

accounting system. Understand how debits and credits work and you'll understand the whole system. Every accounting entry in the general ledger contains both a debit and a credit. Further, all debits must equal all credits. If they don't, the entry is out of balance.

Debits and Credits vs. Account Types

Tally 917

Account Type Debit Credit

Assets Increases Decreases

Liabilities Decreases Increases

Income Decreases Increases

Expenses Increases Decreases

Assets = Debits Assets = Debit Assets = Credit

Liability or Equity = Credit

Liability = Credit Liabilty = Debit

Tally 918

Revenue (equity) Credit

Expenses (equity) Debit

Traditional Approach

Personal A/c

Real A/c

Nominal A/c

Modern Approach

Capital Liabilities

Assets

Revenue Expenses

Tally 919

Personal A/cCr – The Giver of moneyDr – The Receiver of money Real A/cCr – What goes out for business purposeDr – What comes in for business purpose Nominal A/cCr – The income and profitDr – All Expenses and losses

Tally 920

Capital : Money with which business is commenced. Amount invested in a business.

Cr – IncreaseDr – Decrease Liabilities : financial obligation of an entity. Amount

payable to outsiders.(long term, short term)Cr – IncreaseDr – Decrease Assets : Valuable items, which help in generating

revenue in business. Resources and properties owned by entity. (Fixed, Current or floating assets, Tangible , intangible, wasting assets)

Cr – DecreaseDr - Increase

Tally 921

Revenue : The amount actually received by selling the items in which the business normally deals in.

Cr – IncreaseDr – Decrease Expenses : Amount incurred to earn

revenue.Cr – DecreaseDr - Increase

Tally 922

Purchase : Any object purchased with the objective of reselling.

Sale : Sale disposal of normally traded or manufactured items.

Purchase return : When a business returns the purchased goods to the supplier for any reason.

Sale return : When sold goods are returns the

purchased goods to the supplier for any reason. Stock : Goods lying in the godown of businessman. Stock taking : the counting of number of items lying in

the stock. Valuation : Assigning a value in terms of money to the

goods lying in the stock.

Tally 923

Debtors : Customers to whom goods are sold on credit are called creditors.

Creditor : Person from whom goods are purchased on credit.

Investment : Putting idle money in some revenue generating avenue.

Bills receivable : If a debtor puts his signature on a written order it is said that the bill have been accepted by the debtor and it becomes bill receivable.

Bills payable : In this the businessman puts his signature on a written order then it is said that the bill is accepted by the businessman.

Overdraft : Excess money withdrawn from bank.

Tally 924

Drawings : withdrawing money from business for personal and household expenses.

Reserves : Any amount set aside or appropriated out of the profits for future requirements.

Discount : Set of allurement given to customers to pay promptly.(Cash , Quantity, Trade Discount)

Sundry creditors : Current liabilities (service provider) Sundry debtors : Current assets (service receiver) Trial Balance : statement of debits and credits total or

balance extracted from various accounts in the ledger.(total method, balance method)

Balance sheet : Statement prepared to measure the financial position of a business on a fixed date.

Tally 925

Types of accounting software: Tally gold – Multi user Tally silver – Single user Tally ERP – Online user (Advantage is

if system crashes the backup lies at tally server)

Tally educational – If no license and serial key (two dates 1st and 2nd April to work on)

Tally 926

Expand your business No need to hire specialized resources Blazing speed Unmatched stability Sheer power Real-time access to information Better cash flow and savings on interest Amazing accuracy Manage your future dealing with bad

debtors and persistent defaultersTally 9

27

Faster and error-free invoicing and data entry Identify products with high or low margins Avoid stocking excess items and ensure that

you don’t run out of essential stock Better planning and dramatic improvement in

co-ordinate of your operations with reduced paper work

Reduced cost and increased productivity Accurate information tracking quicker data

entry and retrieval Get better understanding and analysis of

performance levels for various periods and divisions

Enjoy better planning and forecasting Save time and reduce paperwork

Tally 928

Tally 929

Title area Horizontal button bar Close button

Main Area

Calculator area

Bottom paneButton bar

The gateway of Tally screen is separated into six sections, namely Title area, horizontal button bar, main area( ctrl+m),calculator area(ctrl+n), button bar and the bottom pane.

Title area contains the tally copyright and tally website link. Tally product type(tally gold, silver, bronze or educational) and tally serial number appears at the upper-right corner.

Main area is separated into two sections, namely , the left-hand side and right hand side, left-hand side gives information of current period, current date and list of selected companies. Right-hand side display company information menu(create company, backup company or restore company).

Tally 930

Horizontal button bar contains Print (alt+p), Export(alt+e), E-mail(alt+m), Upload(alt+o), language(ctlr+l), keyboard(ctrl+k) and help(alt+h).

Bottom pane contains version number, release details, current date(day, date, month and year), system time(hh/mm/ss)

Close button in the upper right corner functions similar to the use of ‘ESC’.

Calculator area is used for calculator functions. Activate by pressing(ctrl+n)

Button bar to make the work easier and faster and vary from on screen to another .

Tally 931

Help – alt+h Select company – F1 Shut company – alt+F1 Select credit note voucher – ctrl+F8 Gateway of tally – ctrl+m Calculator – ctrl+n Date – F2 Period – alt+F2 Company – F3 Company info – alt+F3 Features – F11 Configure – F12

Tally 932

Tally 933

Directory : the data path where you want the company to be created. Default directory path is c:/tally/data

Name: Enter the name of the company whose books are being opened e.g. client company name.

Mailing name and address : enter the mailing name field. It display the company name by default. The mailing name and address are picked up for inclusion in any report.

Statutory compliance for : Select the country from the list of countries. The statutory features and base currency symbol are enabled in accordance with the country selected.

State : Select the appropriate state Pin code : Specify the pin code

Tally 934

Telephone E-mail address : used to email

documents, reports and data from tally Currency Maintain : account only and accounts

with inventory Financial year from : tally automatically

considers 12 months from the date you give here as the financial year.

Books beginning from : the date for books beginning from can be changed, in case of companies, which are incorporated in the middle of the year.

Tally 935

Base Currency Information- The currency in which accounts would be maintained, it varies from country and region.

Base Currency Symbol. Formal Name-Full name of currency specified. Number of Decimal places. Show accounts in millions. Is Symbol Suffixed to Amounts. Put a space between Amount & Symbol. Symbol for Decimal portion. Decimal Places for Printing Amount in words.

Tally 936

Loading a company : Automatically by tallyUsing the select company option Select company Tally displaysCompany nameSystem-generated code for each

companyThe financial year information

Tally 937

Tally 938

Main Area

Main AreaThe left side of the main area includes: Current period – Currently loaded companies

accounting period Current date – Date of last voucher entry for

the selected company List of selected companies – displays the

name of loaded companyThe right side of the main area includes: Creation of account master and importing

master information Creating of accounting vouchers and

importing transaction information Viewing and printing financial reports using

the information given in the masters and transactions Tally 9

39

Go to gateway of tally Select F3 : Cmp info (alt+F3) Select Alter and press enter : make

necessary changes in the required fields To change the password if use security

control is set to Yes:Enter the name of administratorEnter the new passwordRe-enter the passwordEnter the old password and accept

Tally 940

Select F3 : Cmp info (alt+F3) Select Alter and press Enter Select the company to be deleted Use Alt+D to delete. Tally will prompt

for a confirmation on deleting the company

Press enter to delete the company

Tally 941

The books of account of different companies belonging to the same management or owners are required to be consolidated to present the financial position of the group of companies as a whole.

Creating a group of companyA group of companies an be created only

for companies that have already been loaded.

Tally 942

1st step : load the companies whose account is to be grouped. Select the companies using select cmp button.

2nd step : press alt+F3 or click create cmp and select create group company

3rd step : enter the name of the group company ,address and tax details and select the members of the group company from list of companies. Select end of list to complete the selection process

Tally 943

Tally 944

To shut a company is to unload it. It does not mean that you have deleted it.

You can shut a company in two ways – either using the button F1: Shut cmp (alt+F1) or pressing Enter on shut company menu option on the company info menu.

Tally 945

Configuration is to be done before creating and starting work on a company

Press F12 or configure button

General

Tally 946

Country details Style of

names(name/alias etc) Styles of

date(indian(yy-mm-dd), american(mm-dd-yy),etc)

Configuration of numbers

Graphs in monthly reports

Tally 947

Show inventory detail Show table of bills details for

selection Show bill-wise detail Expand into multiple lines Current show ledger balances Show balance as on voucher date Use payment/receipt as contra Allow cash accounts in journals Use cr/dr instead of to/by entry Warn on negative cash balance Pre allocate bills for payment Allow expenses/fixed asset in

purchase vouchers Allow income accounts in sales

vouchersTally 9

48

Printing option allows you to configure printing of voucher, invoice and statement layouts

The general configuration is applicable for all print reports

Tally 949

Payment /receipt/journal vouchers, credit note/debit note

Tally 950

Confirmation statements serve to confirm customers, suppliers, lenders, borrowers.

Tally 951

To create a group or ledger Go to gateway of tally > account info >

group or ledger

Group Single group : useful when you want to work

on one groupMultiple group : useful when you are working

on many sub groups at a time and saves lot of time

Tally 952

Create : used to create new masters Display : used to vies the master information Alter : used to view and make necessary

changes to master informationThe reserved primary groups and sub-groups: Capital accountsReserves and surplus[retained earnings] Current assetsBank accountsCash-in handDeposits(asset)Loans & advances(asset)Stock –in-handSundry debtors

Tally 953

Current liabilitiesDuties and taxesProvisionsSundry creditorsFixed assets Investments Loans(liability)Bank OD Account[bank OCC Account]Secured loansUnsecured loans Suspense account Miscellaneous expenses(asset) Branch/divisions Sales account Purchase account Direct income Indirect income Direct expenses Indirect expenses

Tally 954

Capital Account : This records the capital and reserves of the company.

Reserves and surplus : This contains ledger like capital reserves, general reserve, reserve for depreciation.

Current assets : those asset that do not belong to bank account or cash-in-hand

a) Bank accounts : current account, savings account, short term deposit accounts

b) Cash-in-hand : cash a/c is createdc) Deposits : Fixed deposits, security depositsd) Loans & advances : All loans given by the

company and advances of non-advances of a non-trading nature

e) Stock-in-hand : raw materials, work-in-progress and finished goods

Tally 955

Current liabilities : outstanding liabilities, statutory liabilities and other minor.

a) Duties and taxesb)Provisionsc) Loans Bank OD accountsa) Bank OCC a/c : to record company’s

overdraft accounts with banksi. Secured loanii. Unsecured loan

Suspense account : to track the money paid or recovered

a) Loans and advances (asset) group Miscellaneous expenses(asset): legal

disclosure requirementsTally 9

56

Branch /division : to maintain ledger account of all your company’s branches, divisions, affiliates, sister concerns, subsidiaries.

Sales Account : domestic sales, export sales Purchase account Direct income : non-trade income

(professional fees) Indirect income : rent received, interest

received Direct expenses : manufacturing or direct

trading expenses Indirect expenses: transfer of profit, loss

account to capital or reserveTally 9

57

Gateway to tally>account info>group>create

Name of group Alias Under : sub classification under existing

group Nature of group : additional informationTally 9

58

Group behaves like sub-ledger Net debit/credit balance for reporting Used for calculation Method to allocate when used in

purchase invoice

Tally 959

Gateway of tally>accounts info>group>alter

Select the group to be deleted Press alt+D to delete

Tally 960

Ledger is actual account head to which you identify transaction. In tally, you pass accounting vouchers using ledgers. All ledgers are classified under group

Gateway to tally>accounts info>ledger

Tally 961

Gateway of tally>accounts info>ledger>create(single ledger)

Tally 962

Name : name of account Alias Under : classification under appropriate

group. To create new group alt+C Opening balance : it is applicable when

ledger is asset or a liability and if it has a balance in the account as on the date of beginning of books

Maintain balance bill by bill : if you wish to give a bill-by-bill breakup of ledger balance for sundry creditor or debtor including opening balance

Tally 963

Date Name : bill no or document no. Due date : Date when bill is due Amount : Inventory value effected : applicable

when only if your accounts are integrated with inventory(sales , purchase)

Tally 964

Display ledger : gateway of tally>accounts info> ledger>display

Altering ledger : gateway of tally > accounts info> ledger > alter

Deleting ledger : go to ledger altercation screen and press alt+D

Tally 965

The vouchers are used for recording various transaction.

Payment voucher is used for all types of payments, a receipt voucher for all types of money receipts, a sales voucher for recording sales transactions, and so on.

The predefined voucher types can be displayed by:

Gateway of tally>display>list of accounts> ctrl+V

Tally 966

Voucher is a document that contains details of a financial transaction. For every transaction, you can use appropriate tally voucher to enter the details into the ledgers and update the financial position of the company

Two types of voucher entry Accounting vouchers Inventory vouchers

Tally 967

Payment voucher : payment related transactions

Receipt voucher :transaction accounting for money received

Contra voucher : transfer of funds• Cast account to bank account• Bank account to cash account• Bank account to bank account

Sales voucher : • Sales orders• Sales vouchers/invoices• Delivery notes• Rejection in

Tally 968

Purchase voucher• Purchase order• Purchase vouchers• Goods receipt notes• Rejection out

Journal voucher• Credit notes• Debit notes• Journal• Memo voucher• Reversing journal• Stock journal• Physical stock

Tally 969

Creating accounting vouchers in tally Gateway of tally>accounting

vouchers Default voucher entry screen is

payment voucher screen

Tally 970

Voucher number : it is set automatic in voucher entering screen

Reference : purchase order no. or invoice no.

Narration : to type any comment• Common narration• Single narration

Particulars to/by or dr/cr

Tally 971

Buttons in voucher entry screen• F2 : date• F3 : company• F4 : contra• F5 : payment• F6 : receipt• F7 : journals• F8 : sales• F9 : purchase• F10 : memos• F7 : stock journal• F10 : phys stock• F11 : features• F12 : configure

Tally 972

You can either alter the existing sales voucher type or create a new voucher type based on sales

Gateway of tally > accounts info > voucher types > alter

Select any voucher type say sales Go to the field name of class and enter a

name In next screen you can define the default

accounting allocations for sales invoice and the default accounting allocations for purchase invoice( ledger name, percentage amount, rounding method and limit) Tally 9

73

As additional excise : In Indian sub-continent, a manufacturing tax or excise is levied.

As Flat Rate : To specify a standard mark-up/down on an invoice.

As surcharge : To calculate the value based on the immediately preceding figure.

As total amount rounding : To create an account which would carry the rounding difference.

As user defined value : used when basis of calculation is neither value nor quantity dependent.

Based on quantity : Used for calculating that is based upon ‘total qty’ supplied.

On current sub total : taxes applicable on total goods value as well as supplementary charges like excise duty, packaging charges.

On item rate : Used for both VAT as well as excise duty style calculation.

On Total Sales : Uses the sum of stock items used in the invoice for calculation.

Tally 974

Used for entering fund transfer where net inflow and outflow are equal i.e. net effect is zero. Groups : Cash-in-hand, bank accounts and bank OCC.

Transactions to be entered in contra voucher:

Cash deposit into bank Cash withdraw from bank Cheque of one bank deposited to

another bank Cash given to/received back from petty

cashTally 9

75

Press F4 at the voucher entry screen

Background color of voucher screen : white Entry rule: The first entry is always credit.

From 2nd entry onwards you can select Dr or Cr. Ledger accounts pop-up would display only ledger placed under cash, Bank account and bank OCC

Tally 976

Payment voucher : All transaction related to payment (by cash or bank) are recorded in payment voucher. Dues to creditors, Loans/Advances given by you or repayment of loans/advances.

Tally 977

Press F5 at the voucher screen to make payment voucher

Background color of voucher screen : Yellow

Entry Rule : The first entry is always debit and second entry onwards you may specify debit or credit . You can make multiple entries in single voucher .

Tally 978

All inflow of money (in cash or through bank) is recorded through receipt voucher. Through debtor or loans/advances taken or refund of loans/advances given earlier.

Tally 979

Background color of voucher screen : green

Entry rule : first entry is always credit and second entry onwards you can specify dr or cr. You can also enter the fund transfer entry in a reciept voucher if you activate the option payment/receipt voucher as contra.

Tally 980

Used for non-cash transactions like adjustment between ledger accounts.

Press F7 at voucher screen to enter journal voucher

Background color of voucher screen : yellow

Entry rules : One account may be debited and another account may be credited. There is no restriction of number of debits & credits, provided the total of debits is equal to total of creditsTally 9

81

Tally 982

All purchase transactions are entered in purchase voucher (including cash purchase). Cash purchase entry will automatically appear both in purchase register and in cash book.

Press F9 at voucher entry screen to enter purchase voucher

Background color of voucher screen yellow

Tally 983

All sales transaction is entered in sales voucher, entry would automatically appear both in sales register and in cash book.

Press F8 at voucher entry screen to enter sales voucher

Background color of voucher screen green Entry rule : The first entry must be debit

involving any debtor. Second entry should be credit to a ledger placed under sales account group

Tally 984

Tally 985

If you set the option use debit/credit notes as yes F11 feature. You can select this voucher on clicking F7 or F8

Basically credit note is entered to credit party account, when buyer returns some goods that are sold to him or when you grant him credit or discount/rebate.

Entry rule : first entry must be credit involving any debtor. Second should be debit to a ledger.

Tally 986

Can be selecting by choosing F7 and F9 It is entered to debit party account. When

you make purchase return or have short billed a customer or your supplier.

Background color is yellow Entry rule: first should be debit involving

any creditor. Second a credit to a ledger placed under purchase.

Tally 987

Gateway of tally>accounts info>voucher type>create

Tally 988

Type of voucher Abbreviation Method of voucher entry Use effective date for voucher Use common narration Narration for each entry Printing Voucher class

Tally 989

Security controlTwo default security levels: Owner Data entry

Tally 990

An enhanced security system which allows for encryption of the company data. Encryption involves converting normally accessible Tally information into unrecognizable information.

Gateway of tally>Cmp info>Create/Alter company

Set use security control to Yes

Tally 991

To change tally vault password of a company:

Select Gateway of tally> F3:Cmp Info> Change Tally vault

Tally Audit feature: Provides capability to the administrator/auditor to track changes in the accounts following his previous review.

To use this facility select yes against using audit feature in company creation screen.

To view the audit list go to display>Statement of accounts>Tally audit

Tally 992

BackupTally can take backup of the data from

virtually any storage medium into any other medium(floppy drive, hard drive, zip drive, tape drive etc.)

Gateway of tally>F3: cmp info>backup

Tally 993

RestoreTally allows restoring of data from medium

into any other storage medium.

BudgetThey are used to set targets and compare against actuals and get variancesGateway of tally>Account info>Budgets>Create

Tally 994

Special vouchers used to record provisional or non-conventional transactions.

Memo voucher : This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts.

Tally 995

Optional voucherIt is a non-accounting voucher, it is not a

separate voucher type, you can make an existing voucher as optional

Gateway of tally>Account info>voucher types>select a voucher type>set make optional as default to yes

Enabling optional voucher Gateway of

tally>F11:features>Accounting features>set use rev. journal & optional vouchers to yes

Tally 996

Reversing journalsSpecial journals that are automatically

reversed after a specified date. They exist only till that date and are effective only when they are included in reports like balance sheet.

Tally 997

Post dated voucher registryAll post dated vouchers are maintained in

a post-dated voucher registerGo to gateway of tally > Display>

Exception reports> post-dated vouchersDifference with unconventional voucher:Post-dated voucher effect regular books of

account.Post-dated entry can be done through

account voucher entry

Tally 998

A Cost Centre is unit of an organization to which transactions can be allocated. When only cost or expenses are allocated to these units, they are called cost centres. When profits are allocated they become profit centres. e.g..

Department Product Individual To activate : F11:Features > Accounting

Features > maintain cost centres to yes Create new account centre : Goto Accounts

info> cost centre > single cost centre> create Tally 9

99

Facilitate to allocate to multiple cost centres in parallel. For example a company may allocate an amount independently to salesman, product & agents.

Create cost categories : goto account info> cost category> single cost category> create

Example: Create the cost categories named department,

executives and project Create three cost centres named marketing,

manufacturing and finance under cost category department. Create three cost centres salesman A, salesman B, salesman C under cost category executives. Create three cost centres airport, roads and building under category project.

Tally 9100

Applying cost centre to ledger: Goto gateway of tally> account info>

ledgers> alter > select the ledger conveyance set cost centre are applicable to yes

Cost centre allocation in voucher entry:

Goto gateway of tally> accounting vouchers >F5 : payment

Tally 9101

The purpose of compiling data is to present it in comprehensible accounting reports.

Features in reports: Drilldown : press entre at any record to drill down

step by step Voucher in alter mode : insert/ alter/ delete/cancel

vouchers Track able : press esc key to go back Display details : to explode a record press

shift+enter same to collapse. Master alteration : to alter ledger/ group/ voucher

press ctrl+enter. Hide report lines in display : press alt+r key on the

record to be hidden Restore report lines in display : press alt+u key Restore all hidden lines in display : press ctrl+u key

Tally 9102

Gateway of tally> display Tally reports are classified into two major

areas accounting reports and inventory reports. Each area is further grouped into books and statements

Trial balance : provides you a report on account balances sorted by groups, for all the accounts of the selected company.

The day book : contains all vouchers for the day, including inventory vouchers.

Account books : it is used to display cash/bank books, all entries pertaining to a ledger, group summary, group vouchers, register details as sales, purchase and journal. Tally 9

103

Statement of accounts : these pertain to cost centres and outstanding analysis.

The cash and fund flow : it has two types cash flow i.e. inflow and outflow of clash and current assets, fund flow for inflow and outflow capital.

List of accounts : gives the tree structure of all your masters, namely, groups, ledgers, stock items, cost centres, currencies, etc.

Exception reports : are those reports that track unusual transactions or balances. E.g.. Negative ledgers, negative stocks etc.

Tally 9104

Books of accounts record the transaction details as entered.

For example, cash book records all transaction affecting cash and sales book records all sales transactions.

Display>account books>cash/bank books

Select the bank account>press enter to display ledger monthly summary>highlight a month>press enter to display ledger voucher screen

Tally 9105

Tally 9106

Financial statements: show summary totals, ratios and statistics, analyzing a company’s financial data in a wide variety of ways. Includes balance sheet, Profit & lost A/c, and cash flow analysis.

Accounts reconciliation statement : shows flow of accounts from opening balance to the effect of transactions on closing balance. E.g. Trial balance

Select f12:configure set opening balance parameter to yes

Tally 9107

Tally 9108

Day book : List all transactions made over a particular day and by default displays last voucher entry.

Gateway of tally>display>daybook Press f2:period or alt+f2: to list all

transaction over a period F4: chg vch : to select a particular

voucher

Tally 9109

Tally 9110

Sales register(sales day book) Gateway of tally>display>accounts

book>sales register By default, all registers display

monthly summary of transactions and closing balances

Press enter to see sales voucher register

Tally 9111

Columnar sales register Select the option F5: columnar from

the button bar, in sales voucher register screen.

Then select the type of column from the screen

Tally 9112

All items(automatic columns)

Chg Vch : use this option to view a different register from within existing register

Tally 9113

Registers for statistics : drill down a specific type of voucher to view details

Gateway of tally>display>statements of account>statistics

Tally 9114

Group summary : gateway of tally>display>Account books>group summary>group name e.g. duties and taxes.

Shows the closing balances of accounts falling under the selected group over a period.

To view led-wise display of group summary . Press F5:Led-wise, toggles with grouped

Tally 9115

List of vouchers Ledger vouchers: List of voucher for

current month.Gateway of tally> display> Account book

>ledger>ledger account Ratio Analysis The Stock summary : It is the statement

of stock-in-hand on a particular date and get updated every transaction.

Gateway of tally>stock summary

Tally 9116

The ratio analysis statement : Is a single sheet report indicating company’s performance based on values and key indicators, over a selected period and companies financial condition.

Screen divided into two parts:Principal Groups: key figures Principal Ratios: two pieces of financial

data to obtain a comparison

Tally 9117

Cost category summary displays information on all cost categories to which you have allocated the voucher transactions.

Gateway of tally> display> statements of accounts> cost centers> category summary

Tally 9118

Receivables : It displays all outstanding receivables invoice by invoice till date. It only considers those accounts that have Bill-by-Bill option activated.

Gateway of tally>Display>Statements of accounts> Outstandings >receivables

Press F12: Configures bill-wise outstanding report

Tally 9119

Negative Ledger: Accounts that have obverse balances, i.e., that are opposite to the nature of account.

Gateway of tally>display>Exception Reports>Negative ledgers

Overdue Payables: List of purchase bills that are overdue as on current date

Gateway of tally>display>exception reports>overdue payables.

Press F6 : Age-wise analysis(bill date or due date)

We can produce reminder letter from ledger outstanding report. Click the print from the button bar

Tally 9120

Balance sheet and P&L A/C : Configuring: Show vertical balance sheetBritish/Europe configure has liabilities and assetsIndian/Asian configure display source funds and

application of fund Method of showing the balance sheetLiabilities/assetsAssets/liabilities Format of balance sheet : horizontal/vertical Columnar balance sheet : for a different date to

compare with current one Show quarterly balance sheet Show gross profit set to yes F11 : features : can set Income/Expense

statement instead of P & L Tally 9

121

Gateway of tally of an account with inventory

Inventory information : The menu lists the masters, through which you can provide Tally the details of your company’s inventory.

Integrate account with inventory : If account with inventory is set to yes

the stock/inventory balance figure is updated with the inventory records.

If the option account with inventory is set to No the inventory books are ignored closing stock balance is entered manually. Tally 9

122

Inventory info contains following masters:

Stock group Stock categories Stock items Godowns Budgets Voucher types Units of measure

Tally 9123

Stock group : are similar to group in accounting masters. They are helpful in the classification of stock items. They enable easy identification and reporting of stock items in statements.

Gateway of tally>Inventory info>StockGroups>create

Tally 9124

Stock Categories : Similar to cost categories. Offers the benefits of classifying an item in another dimension.

Option becomes available if you set maintain stock categories to yes in F11: feature

Allows parallel classification of stock items. You can create categories like floppy disk and floppy drives.

Stock query option in statements of inventory display the strength og stock categories

Tally 9125

Using Multiple stock category you can use the following masters :

GroupsItemsGodowns Units of measure : stock items are

purchased or sold on the basis of quantity. You need to create units of measure for all the stock items

Gateway of tally>Inventory Info>Units of measure>create

Tally 9126

Tally 9127

Stock item : Gateway of tally>Inventory

info>Stock item>Single create

Tally 9128

Godowns/Locations : It is the place to store goods which may be a warehouse, rack,shelf,bin or anything. Same as process/ contractor/ third party job worker.

To switch on godown management : F11 > Inventory features

Gateway of tally>Inventory info>godowns>create

Tally 9129

Tally 9130

Price List : Useful for order and invoices. An up-to-date price list helps in decision making even at lower levels of the organization and quickens sales process.

Creating Price Levels : F11:features > Inventory features

Allow Invoicing set to yes Use multiple price levels to yes Type out the price levels, one by one in

company price levelsTally 9

131

Assigning ledger accounts to price levels

You can choose the price level that you want to assign to the ledger by selecting the price level from the price levels list in the pricing level applicable field.

Tally 9132

Price levels in voucher entry – Invoicing

You can configure the entry so as to prevent the usage of a different price list than the one that is set.

Gateway of tally> F12:Configure> Invoice/orders Entry

Example : gateway of tally> accounting vouchers> F8:Sales

Tally 9133

Reorder levels : signify the quantity of a stock item in hand, after reaching which you must place order for supply. The points to consider while deciding the reorder levels:

Lead-time for suppliers to deliver the stock

Delivery time specified Stock in hand to satisfy orders Gateway of tally>inventory info>reorder

levels To enable this option : allow purchase

order processing enabled by F11: featureTally 9

134

Tally 9135

Obtain reorder status : gateway of tally> display> statements of inventory> reorder status

Tally 9136

Inventory vouchers perform the same function in the inventory system just as accounting vouchers.

If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the balance sheet stock figures.

Gateway of tally>Inventory vouchers Set the option integrate account and

inventory to yes in F11:feature

Tally 9137

Five kinds of inventory vouchers: Receipt notes and delivery notes Rejection – in and rejection – out Sales order and purchase order Stock journal Physical stock Enabling F11 :feature Set use tracking number to yes to activate

delivery note and receipt note voucher Set use rejection notes to yes to activate

rejection in and out vouchers Set allow purchase order processing and allow

sales order processing to yes to activate purchase order and sales order vouchers

Tally 9138

Receipt note voucher : used for recording goods received

F9:rcpt voucher Details recorded : Reference, ledger

account, supplier’s name, address and dispatch details, name of stock item, tracking detail, godown, quantity, rate, amount, narration

Tally 9139

Rejection-In voucher( sales returns) and Rejection-Out voucher(purchase returns) : record goods that are rejected or returned by the customer

Rejection-In :Ctrl+F6, records return of goods from customer

Detail recorded : Ledger account, customer name, address supplementary detail, name of stock item, tracking detail, order detail, amount, narration

Tally 9140

Rejections out voucher : records goods that are rejected and returned to supplier

Alt+F6 Details recorded : Ledger account,

supplier’s name, address, and dispatch, name of stock item, tracking details, order details, godown , quantity, rate, amount, narration

Tally 9141

Stock journal voucher : record stock transfers from one location to another

Alt+F7: Stk Jrnl Details recorded : Reference, name of

source and destination location, name of stock item, godown, batch, quantity, rate, amount, narration

Tally 9142

Bill of material : list of constituent items along with quantity details that can be allotted towards manufacturing a certain product, by-product or likewise. Can be used by manufacturing organizations.

Gateway of tally> F12:configure> Accts/ Inv info >set allow component list details( bill of materials) to yes

Tally 9143

Creating a manufacturing journal Gateway of tally> Inventory info>

voucher type>create

Tally 9144

Creating a bill of material (bom) is created only for those items that are being assembled in-house.

Gateway of tally> Inventory info> stock item>create

Tally 9145

Order processing : is placing of order with suppliers for purchase to be made from them or receive orders from customers for the purpose of selling. In tally, order processing is linked to inventories, allowing tracking of order position for stock item.

Allow purchase order processing and allow sales order processing to yes

Gateway of tally> display>day book

Tally 9146

Creating sales order : exactly like purchase order entry. Also depends upon configuration settings

Gateway of tally> inventory vouchers> F5: sales order

Tally 9147

View order position : view the order position in stock summary

Gateway of tally> stock summary> F1:detailed

Tally 9148

Physical stock voucher is used for recording actual stock which is verified or counted. It could happen that the book stocks and the physical stock do not match.

Gateway of tally>inventory voucher> F10:phys stk

Tally 9149

Invoicing or sales invoicing is almost similar to sales voucher entry. You will use the same voucher but select as invoice option to turn it into a sales invoice. Purchase invoices are recorded through normal purchase voucher entry and it does not have provision of being converted into an invoice format for every purposes. Advantage is that it enables automatic calculation of taxes and duties. You can print your invoices

Tally 9150

Allow invoicing is set to yes in F11:Feature to create sales invoice.

To create purchase invoices, ensure allow invoicing is set to yes and also enter purchase in invoice format is set to yes in F11:feature

Gateway of tally>accounting vouchersSet show inventory details to yes in

F12:configure Under the group sales and purchase

accounts, ensure inventory values are affected is set to yes

Tally 9151

Configuring invoice Gateway of tally>accounting

vouchers>F8:Sales/F9:Purchase F12:Configure Complete accounting allocation in

order/delivery notes set to Yes Allow modification of all fields during

entry set to yes Printing invoice : gateway of

tally>F12:configure>Printing>Sales Transactions>Sales Invoice

Tally 9152

Tally 9153

Voucher class for stock journalStock journal allows you to handle

transfers from one location(godown) to another, for companies having multi-location inventory and at least two locations/godowns created

Account info>voucher types>create Select stock journal voucher from the list

of voucher types To create a stock journal voucher class,

enter a name of class field To create a class for inter-godown

transfer set use class for inter-godown transfer to yes Tally 9

154

Stock summary: statement of stock-in- hand as on particular date. It is updated at every transaction in real and provide the current stock position.

Gateway of tally>stock summary Stock summary configuration:

F12:configure Displays the flow of stock: opening

balance, goods inward, goods outward, closing balance

Tally 9155

Stock item: monthly summary of stock itemDisplay>inventory books>stock item Group summary: summary of stock groupDisplay>inventory books>group summary Sales order book: details to sales order placedDisplay>inventory books>sales order books Purchase order books : details of all purchase

order placedDisplay>inventory books>purchase order books Stock transfer : stock journal register which

shows monthly movement of stock.

Tally 9156

Stock valuation method: can be used to view effects of different methods on the value of stock. Set up to have a different stock valuation method.

Stock summary>new column button

Tally 9157

Analysis of inventory movement: generally used for comparative study, where goods received but bills not received and goods dispatched but bills not raised are considered.

Gateway of tally>display>inventory books>movement analysis

Analysis is by stock movement, categories, financial group or ledger

Tally 9158

Movement analysis(stock group analysis)

Displays the total inward and outward movement of all items in a selected stock group. The quantities displayed are the actual quantities of movement.

Item voucher analysis: This report gives the value details of all transactions for a selected stock item from a particular supplier or to a particular customer.

Stock category analysis: Displays the movement of stock items of a selected stock category. The inward and outward movement of items are summarized. Tally 9

159

Transfer analysis : gives the movement detail for each type of stock journal. This is a very useful costing and waste analysis tool

Tally 9160

Godown/location summary: displays the stock summary for different godown/location. While main stock summary shows the stock position for the entire company on a particular date, the godown/location summary is a statement of stock-in-hand at each location on a particular date.

Gateway of tally>display>statement of inventory>godown/location

Press shift+enter to expand and collapse the group.

Tally 9161

Purchase bills pending: Option is created when the option tracking number is set to yes in f12 features. It lists all the incomplete purchases where goods may have received, but not fully invoiced.

Gateway of tally>display>statement of inventory>purchase bills pending

Negative stock : report displays a list of stock items that have a negative closing balance at the end of a specified period.

Gateway of tally>display>exception reports>negative stock

Tally 9162

Ageing analysis report :generated on the basis of bill break up performed for the vouchers entered for a particular customer or supplier. It helps you to know all the outstanding or unclear vouchers of that customer or supplier. It is applicable only if batchwise stock is maintained.

Display>inventory books>ageing analysis

Press f6 for changing period Alt+s for changing ageing style Alt+b for expired batches only Alt+a to show/hide amounts

Tally 9163

Statutory reports: the menu will appear depending upon statutory features enabled. F11 features>statutory and taxation

Tally 9164

Concept of VAT: Value added tax(VAT) is based upon the value addition to the goods and the related VAT liability of the dealer is calculated by deducting the input credit from the tax calculated on sales during the payment period.

VAT works in two different ways:1. If VAT registered business receives more output

tax than the taxes paid as input, they will need to pay the difference to the commissioner of taxes.

2. If the input tax paid is more than the output tax collected, you carry forward the input credit and adjust it with the output tax, input credit is refunded to you by the government, you receive refunds for input credit on exports within a period of three months

Tally 9165

General terms: Input tax: tax paid on purchase Output tax: tax charged on sales Input credit: amount of input tax that is

permitted to be set off against output tax Composite dealer: dealer with annual

gross turnover not exceeding a certain threshold can opt for a composition scheme whereby they will pay a tax as small percentage of their gross turnover

Tally 9166

VAT Rates: VAT @4% : Largest number of goods

comprising basic necessity items such as drugs and medicines, agricultural, industrial inputs, capital goods are declared under 4% VAT category.

Exempted from VAT : 46 commodities under the exempted category, includes natural and unprocessed products in unorganized sectors as well as items.

VAT @1% : Goods like gold, silver etc.\ VAT @12.5% : few goods like liquor, lottery

ticket, petroleum products, as the prices of these are fully market-determined.

Tally 9167

VAT in tally: It supports following features:

1.Quick and easy setup2.Fast and error free voucher entry3.Pre-defined list of sales and purchase

classification4.Complete tracking of each transaction5.Pricing of tax invoice6.VAT computation report7.Better VAT return management8.Monthly return

Tally 9168

Gateway of tally>account info> f11 feature>statutory & taxation> set enable value added tax and set/alter VAT detail to yes

Set/alter VAT details to yes will prompt with VAT details screen

Tally 9169

VAT classification : list of VAT rates which describe the nature of the business activity and the type of transaction.

Input VAT @4% Input VAT @1% Input VAT @12.5% Output VAT @1% Output VAT @4% Output VAT @12.5% Purchase-capital goods Purchase-Exempt Purchase from unregistered dealersDepending upon the type of business, type of

transaction, and the statutory requirements of your state, you will need to select the appropriate classifications from the list during ledger creation, voucher entries ,etc.Tally 9

170

Ledger masters: VAT classification will be displayed as a dropdown list in the ledger master. The ledgers that are affected by VAT are:

Purchase Ledger Sales Ledger Duties and taxes ledger Direct expenses/incomes

Tally 9171

Creating a purchase ledger for VAT Gateway of tally>accounts

info>ledger> create/alter Set used in VAT return to yes if you wish

to select VAT/TAX class for this ledger. Tally gives the facility to the user to either have the classification selected in the ledger master or select different classification on each transaction. The rest of the ledger creation process is the same as in default tally.

Tally 9172

Tally 9173

Creating a purchase voucher(as invoice) for VAT : As item invoice the selection and display of VAT classification in the vouchers differ according to the settings in F12:configuration screen

Use common ledger A/c for item allocation when set to no, you can see the VAT/TAX class at the header region of the screen. Set this to yes when you want to use common ledger for all items.

Allow selection of VAT/TAX during entry when set to no VAT/TAX class will not be displayed in the voucher screen and the classification will be taken from the ledgers

Tally 9174

Printing configuration : F12:configure> printing>purchase transaction>purchase voucher

Enable the column print VAT% column rate of VAT and VAT classification is printed

Enable VAT analysis to print VAT amount on the total net value.

Tally 9175

Payment of VAT in Tally: The journal and payment voucher

entries for the payment of VAT are used

Journal entry

Tally 9176

Payment voucher :

Tally 9177

Purchase return-debit note:

Tally 9178

Sales return-credit note

Tally 9179

Tally 9180