Tally finance

8/9/2019 Tally finance

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Creating a CompanyCreating a Company involves providing basic information about the company whose books of accounts are to be maintained in Tally.ERP 9.Go to Gateway of Tally !"lt#$%& Company 'nfo. Create Company

The Company Creation screen appears as shown(" detailed e)planation on each *eld is given(+irectory

The data path where you want the company to be created is speci*ed in the +irectory *eld. This *eld is skipped by default when you create the company in the data path given inthe Tally.',' *le. 'f you want to change it- use the ackspace key and modify it to the pathre/uired.

This is referred to as the Tally "nywhere concept 0 which is the ability to create1load companies inseparate directories. The +irectory *eld is displayed while selecting 2elect- Create- ackup- Restoreand Rewrite options for a company. y default- the cursor will skip the *eld- presuming that you


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wish to use the default data directory for your work. 3ou may press ackspaceto give a new pathand work from there.$or e)ample- the default Tally.ERP 9 data directory could be C(4T"553.ERP4+"T". 3ou may nowwish to create a new company on C(4T"553.ERP4PER26,"5- and some other companies onC(4T"553.ERP4 R",C7E2. The ne)t time- the default directory displays C(4T"553.ERP4+"T"- and if you wish to work on the data of your branches- press ackspace and enterC(4T"553.ERP4 R",C7E2 for the directory name. This displays the companies whose data is storedin that location in the 5ist of Companies. 3ou can even give the path of a network server or anyother storage device.'f your business uses Tally.2erver 9 to maintain data-

Click on 2( 2erver 5ist or press "lt#2,ote( 'f the administrator has enabled 2ecuri ty "ccess- users need to provide theauthorised Tal ly.,ET credent ials in order to access the 2erver 5ist .

The 5ist of Tally.2ervers is displayed. 2elect the re/uired location Press Enter to continue with Company Creation

,ameEnter the name of the company whose books are being opened. 'f you are a professional accountantand are maintaining the books of your clients- give the Client Company8s name.

ailing ,ame and "ddress'n addition to the Company ,ame- Tally.ERP 9 provides the facility to enter the ailing ,ame *eld.'t displays the Company ,ame by default. 3ou may change it as re/uired- if the mailing name isdi:erent from the Company ,ame. The mailing name and address details are picked up for inclusion

in any report that needs the company name and address as heading. $or e)ample( alance 2heets-2tatement of "ccounts- and so on. Tally.ERP8s reports print the mailing name and address as given( Tally.ERP 9 does ,6T restrict the number of lines for the address details. Tally.ERP 9accommodates all the entered information and vertically compresses the same.,ote( 'n the space provided for the "ddress detai ls- observe the vert icalcompression as compared to the ai l ing ,ame f ield where there is hori;ontalcompression.

3ou can speci fy any length for the mai l ing name and you are permi t ted to give anynumber of l ines for the address. The information is completely visible.

Tal ly.ERP 9 handles compressed informat ion correctly whi le print ing. 't ad


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Tally.ERP 9 displays a drop down for the Type of Company with two options "ccountsonly and "ccounts with 'nventory2elect "ccounts only if you do not have any inventory transactions !suitable for professionals andcorporate o@ces&.

7owever- at a later date !if re/uired& you can choose to alter the information as "ccounts=with='nventory. 2elect"ccounts=with='nventory- to maintain both *nancial accounts and inventory.$inancial 3ear $rom'n most countries- the books of accounts of a company are maintained for a stipulated period like-AB months- A months- and so on. This stipulated period is referred to as the $inancial 3ear.

The stipulated period of the *nancial year is AB months in most countries. Tally.ERP 9 automaticallyconsiders AB months from the date you give here as the $inancial 3ear.$or e)ample- if you enter "pril A- BDD as the date- the $inancial 3ear will be from "pril to archending with arch %A- BDD9. 'f you enter 6ctober A- BDD as the $inancial 3ear $rom then the*nancial year will be from 6ctober BDD to 2eptember BDD ending with %Dth of 2eptember everyyear.

Tally.ERP 9 allows you to maintain data for multiple years by changing the period !"lt#$B& at theGateway of Tally. 'n addition- you can also specify the date of actual establishment of the company!date of incorporation&

ooks eginning $rom Tally.ERP 9 presumes that you wish to maintain books from the beginning of the *nancial year.7ence- Tally.ERP 9 displays the date given in $inancial 3ear $rom *eld automatically.

The date for ooks beginning from can be changed- in case of companies- which are incorporated inthe middle of the year. 'f your company is new- you can opt to start the books of accounts from thedate of actual establishment of the company !date of incorporation& but close books according tothe $inancial 3ear as speci*ed by you. Tally.ERP 9 provides the re/uired Fe)ibility in such a case byallowing you to give the date when the books of accounts actually began. Tally.ERP 9 will openbooks from this date and close as on the last day of the $inancial 3ear.$or e)ample- if your company is established on "ugust A9- BDD - the opening balances for all theaccounts can be given as on "ugust A9- BDD even though the $inancial 3ear given is "pril A- BDD!"pril to arch *nancial year&. The company8s books will begin on "ugust A9- BDD and close on

arch %A- BDD9- which ensures smooth transition to the ne)t year. This concept can be applied even when you are migrating to Tally.ERP 9 from any other system orfrom a manual accounting system on any day during the $inancial 3ear. Close books in that othersystem on the previous day and start books on Tally.ERP 9 from this day. 3ou are allowed to giveopening balances of all 5edger accounts including Revenue accounts.

Tally ault Password Tally ault is an enhanced security system- which allows for encryption of the company data.Encryption involves converting normally accessible Tally information into unrecognisableinformation- which can only be reconverted by authorised persons.Give a password here and repeat the same in the Repeat *eld. This basically results in the creation


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This facility is provided to users who re/uire a space between the amount and the symbol.7owever- putting a space between the amount and symbol could give an opportunity for misuseincase of che/ue printing. 7ence- the Fe)ibility to turn this option on and o: as re/uired isprovided.+ecimal Places for Printing "mounts in Lords

3ou can specify the number of decimal places for printing the amount in words. This numbershould be e/ual to or lesser than the number speci*ed in ,umber of +ecimal places *eld incompany creation or currency master screen which will appear in 'nvoice and Che/ue printingscreen.$or e)ample- if the currency is e)pressed upto % decimal places- the numeric to be printed in wordscan be restricted to B decimal places.,ote( The ,ame of the Company- cannot be translated or transl i terated but wi l lappear in the5oading a Company'n order to load a company using the 2elect Company option- disable the default loading of acompany in Tally.ini *le. 2et+efault Companies to ,o 6R place a semi=colon before 5oad O DDDDA!company number = placing a semicolon means that the words following it in that line would not bee)ecuted. Each line is a separate command&.


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6n double=clicking the Tally icon- the screen is displayed as shown( 3ou can use the 2elect Company option in two ways- from the Company 'nfo. enu 6R by usingthe button $A( 2elect Cmp!available on the Gateway of Tally screen&.2elect Company2elect Company option allows you to load another company from the list of companies listed whichyou may have created earlier.Press Enter on 2elect Company or use the button $A( 2elect Cmp. Tally.ERP 9 displays the

following screen('f your business uses Tally.2erver 9 to maintain data-Click on 2( 2erver 5ist or press "lt#2,ote( 'f the administrator has enabled 2ecuri ty "ccess- users need to provide theauthorised Tal ly.,ET credent ials in order to access the 2erver 5ist .

The 5ist of Tally.2ervers is displayed. 2elect the re/uired location The Companies available on the selected Tally.2erver will be displayed( Tally.ERP 9 displaysA. Company ,ame !"ll the companies created are displayed in an alphabetical order&B. 2ystem=generated code for each company displayed%. The $inancial 3ear information relating to the number of years data present in thecompany,ote( The system=generated code for each company is displayed to assist you inidenti fying which company you wish to work on in case you have mul tiple companieswi th the same name !as displayed in the above screen&.2elect the re/uired company from the list given to go to the Gateway of Tally for that company.'n case two or more companies are loaded - click on the company which you need to work on so that theselected company will be highlighted and will appear on top of the list.2hut a Company2hut a Company is to unload it. 't does not mean that you have deleted it. 2imply select it againto load and work on it again.

3ou can shut a company in two ways 0 either using the button $A( 2hut Cmp !"lt # $A& orpressing Enter on 2hut Companymenu option on the Company 'nfo. enu.

The screen appears as shown below(2elect the company to be shut from the 5ist of Primary Companies."lter a Company

This option allows you to alter information about the e)isting company- you can modify anyinformation at any time that is set while creating a company.Go to Gateway of TallyA. 2elect $%( Cmp 'nfo. !"5T#$%& from the button barB. 2elect "lter and press Enter and the screen appears as shown below(%. 2elect the company from the 5ist of Companies and press Enter to view the Company"lteration screen.H. ake the necessary changes in the re/uired *elds and accept the screen.

To change the password if Jse 2ecurity Control is set to 3es(A. Enter the ,ame of "dministrator.B. Enter the new password.%. Re=enter the password in the Repeat *eld to con*rm.H. Enter the 6ld Password and "ccept the screen to alter the company.,ote( To understand the condi t ions that determine a Password8s strength-cl ick Password 2trength 'ndicator .+elete a Company

This option allows you to delete an e)isting company. To delete a company- you have to load the company *rst.A. 2elect $%( Cmp 'nfo. !"5T#$%& from the Gateway of Tally to proceed to theCompany 'nformation menu.B. 2elect "lter and press Enter.

%. 2elect the company to be deleted. The Company "lteration screen is displayed.H. Jse "lt # + to delete. Tally.ERP 9 will prompt for a con*rmation on deleting thecompany.

. Press Enter to delete the company.,ote( +elet ion of a company is i rreversible. The company is permanent ly deletedfrom the system.Pre=de*ned Groups in Tally.ERP 9

y default- Tally.ERP 9 provides a list of Groups called pre=de*ned groups. The user can createany number of Primary Groups and 2ub Groups which are again grouped under a PrimaryGroup12ub Group.

There are B pre=de*ned Groups in Tally.ERP 9- out of which A are Primary Groups and A%


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are 2ub=Groups.A Primary Groups A% 2ub Groups

ranch 1 +ivisions ank "ccountsCapital "ccount ank 6+ "1cCurrent "ssets Cash=in=handCurrent 5iabilities +eposits !"sset&+irect E)penses +uties Ta)es+irect 'ncomes 5oans "dvances!"sset&$i)ed "ssets Provisions'ndirect E)penses Reserves 2urplus'ndirect 'ncomes 2ecured 5oans'nvestments 2tock=in=hand5oans !5iability& 2undry Creditors

isc. E)penses !"22ET& 2undry +ebtorsPurchase "ccounts Jnsecured 5oans2ales "ccounts2uspense "1c6ut of the A Primary Groups- 9 Primary Groups appear in the alance 2heet which are Capital innature and Q Primary Groups appear under Pro*t 5oss "ccount which are Revenue in nature.A% 2ub Groups are classi*ed under the A Primary Groups and they appear in the alance 2heet.Pre de*ned 2ubGroups

Jnderank "ccounts Current "ssetsank 6+ "1c 5oans !5iability&

Cash=in=hand Current "ssets+eposits !"sset& Current "ssets+uties Ta)es Current5iabilities5oans "dvances!"sset&Current "ssetsProvisions Current5iabilitiesReserves 2urplus Capital "ccount2ecured 5oans 5oans !5iability&2tock=in=hand Current "ssets2undry Creditors Current5iabilities2undry +ebtors Current "ssetsJnsecured 5oans 5oans !5iability&,ote( The Primary Group cannot be deleted- however- i t can be renamed which isnot suggested.Pre=de*ned 5edgers in Tally.ERP 9

There are two pre=de*ned ledgers available in Tally.ERP 9- they are(Cash

This 5edger is created under the Group Cash=in=hand. 3ou can enter the opening balance as on thedate of books beginning from. 3ou can also alter the name and even delete the 5edger.Pro*t and 5oss "ccount

This 5edger is created under the Group Primary. Previous yearIs Pro*t or 5oss is entered as theopening balance for this ledger. The balance entered here is treated as the opening pro*t1loss andshown in the alance 2heet as opening balance of Pro*t and 5oss account in the 5iabilities side.

3ou cannot delete this ledger- but you can modify the same.Creating a 2ingle 5edger

y default- Tally.ERP 9 contains two 5edger accounts namely- Cash !Jnder Cash=in= 7and& andPro*t and 5oss "ccount !direct Primary "ccount&. 3ou need to create all other accounts heads.

There are no restrictions in 5edger creation e)cept that you cannot create another Pro*t 5oss "1c."ny number of Cash "ccounts may be created in any other name for e)( Petty Cash.Go to Gateway of Tally "ccounts 'nfo 5edgers Create5edgers can be created in ,ormal mode or in "dvance mode .Creating 5edger in ,ormal ode

The creation of a 5edger depends on the features you have selected under $AA( $eatures of yourcompany and $AB( Con*gure. 3ou can create a single ledger account with the default options enabled.


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Go to Gateway of Tally "ccounts 'nfo 5edgers 2ingle 5edger Create,ameEnter the ,ame of the account. 3ou can provide the full name of the account. Tally.ERP 9 *ts it allin. Press Enter to move to the ne)t *eld. Tally.ERP 9 does not allow the entry of duplicate names.

The uni/ueness check is made here itself.,ote that the punctuation and other non=relevant information are ignored by Tally.ERP 9 in itsrecognition of a name. Thus- C2T- C.2.T. and C. 2. T. are all considered as same.

Tally.ERP 9 converts the *rst letter of all relevant words to upper case- which helps youN speed updata entry."liasEnter an alias name if re/uired. 3ou can access the 5edgers using the original name or the aliasname.Jnder"ll accounts must be classi*ed under their appropriate Groups. 2elect the Group under which the5edger is created from the 5ist of Groups. !To create a new Group from this *eld press "5T # CS&." wrong classi*cation would a:ect the treatment of the 5edger account in *nal statements andduring voucher entry.

3ou can- alter a 5edger account to change its group classi*cation at any time. Refer 'mportance of Grouping and "ccounting Classi*cations ( for more details in Grouping6pening alance'f yours is an e)isting company whose books you are entering into Tally.ERP 9- 6pening alancewould be applicable in circumstances where the 5edger is an asset or a liability and if it has abalance in the account as on the date of beginning of books in Tally.ERP 9.

Tally.ERP 9 recogni;es normal accounting principles of debit balances for "ssets and credit balancesfor 5iabilities. 't accepts the reverse for obverse balances. Revenue accounts normally do not havebalances. Tally.ERP 9- however- permits you to give balances even for such accounts = 3ou may betransferring your books on to Tally.ERP 9 in the middle of the year and may not have closed them inyour earlier system. 7ence- you may specify whether the balance is +ebit or Credit.2imply + orC would su@ce.

Creating a Purchase 'nvoice To create purchase invoice for purchase of ta)able goods-Go to Gateway of Tally "ccounting ouchers $9( PurchasesA. 2elect the PartyIs "1c ,ame from the 5ist of 5edger "ccounts.B. 2elect the Purchase 5edger grouped under Purchase "ccounts with "T1Ta) class =Purchase $rom JR+s = Ta)able Goods !Composition&.%. The "T1Ta) class appears as Purchase $rom JR+s = Ta)able Goods!Composition&.

H. 2elect the stock items from the 5ist of 'tems.. Enter the uantity and Rate. The amount is automatically displayed in the "mount*eld.Q. 2et the option = 's e=2ugam "pplicable to 3es1,o as per re/uirement.U. "ccept the Purchase invoice.Creating a 2ales 'nvoice

To create sales invoice for sale of ta)able goods-Go to Gateway of Tally "ccounting ouchers $ ( 2alesA. 2elect the PartyIs "1c ,ame from the 5ist of 5edger "ccounts.B. 2elect 2ales 5edger grouped under 2ales "ccounts with "T1Ta) class = 2ales =Composition Ta) V AM.%. The "T1Ta) class appears as 2ales = Composition Ta) V AM.H. 2elect the stock items from the 5ist of 'tems

. Enter the uantity and Rate. The amount is automatically displayed in the "mount*eld.Q. 2et 's e=2ugam "pplicable to 3es1,o as per re/uirement.U. "ccept the 2ales invoice.reating a +ebit ,ote

To create a +ebit ,ote for Purchase Returns-Go to Gateway of Tally "ccounting ouchers Ctrl#$9( +ebit ,oteA. Enter the reference number in the Ref. *eld.B. 2elect the PartyIs "1c ,ame from the 5ist of 5edger "ccounts.%. 2elect the Purchase 5edger and the appropriate "T 1Ta) Class appears.H. 2elect the stock item from the 5ist of 'tems and enter the uantity and Rate. Theamount is automatically displayed in the "mount *eld.

. 2et 's e=2ugam "pplicable to 3es1,o as per re/uirement.


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Q. "ccept the +ebit ,ote.Creating a Credit ,ote

To create a Credit ,ote for 2ales Returns-Go to Gateway of Tally "ccounting ouchers Ctrl#$ ( Credit ,oteA. Enter the reference number in the Ref. *eld.B. 2elect the PartyIs "1c ,ame from the 5ist of 5edger "ccounts.%. 2elect the 2ales 5edger and the appropriate "T 1Ta) Class appears.

H. 2elect the stock item from the 5ist of 'tems and enter the uantity and Rate. Theamount is automatically displayed in the "mount *eld.. 2et 's e=2ugam "pplicable to 3es1,o as applicable.

Q. "ccept the credit note.Creating a Payment Entry with ,arration for each Entry'f you want the narration details for every ledger you debit or credit !2ingle narration&- you cancon*gure Tally.ERP8s ,arration details accordingly.

To activate the option ,arration for each entry-Go to Gateway of Tally "ccounts 'nformation oucher Types "lterA. 2elect the re/uired oucher Type.B. Enable the option ,arrations for each Entry and accept the details.%. Return to "ccounting ouchers in Gateway of Tally and select the voucher type andpass the entry.,arration for each entry option is available for all "ccounting oucher Types. Given below is ane)ample of a Payment transaction with narrations for each entry enabled(

The above entry consists of both common narration and narrations for each entry. 'n case of multiple debit1credit entries- you can give single line narration separately for every ledger accountselected.2pecial >eys for oucher ,arration $ield

"5T#R( Recalls the 5ast narration saved for the *rst ledger in the voucher- irrespectiveof the voucher type.

CTR5#R( Recalls the 5ast narration saved for a speci*c voucher type- irrespective of the ledger.Creating a Wournal Entry

Wournal entries are usually used for *nali;ation of accounts. To pass a Wournal oucher-Go to Gateway of Tally "ccounting ouchers

Click on $U( Wournal on the utton ar or press $U.$or e)ample- there may be entries made for interest accrued or interest due. 'f you have to receive'nterest from a party- the same can be entered using Wournal oucher.A. +ebit the PartyB. Credit the 'nterest Receivable "ccount

The Wournal entry is displayed as shown(2pecial >eys for oucher ,arration $ield(


CTR5#R( Recalls the 5ast narration saved for a speci*c voucher type- irrespective of the ledger."llowing Cash "ccounts in Wournals

Wournals are ad


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CTR5#R( Recalls the 5ast narration saved for a speci*c voucher type- irrespective of the ledger.+ebit ,ote Entry+ebit ,ote is a document issued to a party stating that you are debiting their "ccount in your

ooks of "ccounts for the stated reason or vise versa. 't is commonly used in case of PurchaseReturns- Escalation1+e=escalation in price- any other e)penses incurred by you on behalf of theparty etc.

+ebit ,ote can be entered in voucher or 'nvoice mode. 3ou need to enable the feature in $AA( "ccounting or 'nventory features. To use it in oucher mode you need to enable the feature in $AA ("ccounting $eatures

= Jse +ebit 1 Credit ,otes. To make the entry in 'nvoice mode enable the option $AA( "ccounting $eatures = Jse

invoice mode for +ebit ,otes. To go to +ebit ,ote Entry 2creen-Go to Gateway of Tally "ccounting ouchers

Click on Ctrl#$9( +ebit ,ote on the utton ar or press Ctrl#$9. 3ou can toggle between voucher and 'nvoice mode by clicking Ctrl# .Pass an entry for the goods purchased returned to 2upplier "(2pecial >eys for oucher ,arration $ield(


CTR5#R( Recalls the 5ast narration saved for a speci*c voucher type- irrespective of the ledger.Credit ,ote EntryCredit ,ote is a document issued to a party stating that you are crediting their "ccount in your

ooks of "ccounts for the stated reason or vise versa. 't is commonly used in case of 2alesReturns- Escalation1+e=escalation in price etc." Credit ,ote can be entered in voucher or 'nvoice mode.

3ou need to enable the feature in $AA( "ccounting or 'nventory features. To use it in oucher mode you need to enable the feature in $AA ("ccounting $eatures

= Jse +ebit 1 Credit ,otes. To make the entry in 'nvoice mode enable the option $AA( "ccounting $eatures = Jse

invoice mode for +ebit ,otes. To go to Credit ,ote Entry 2creen(Go to Gateway of Tally "ccounting ouchersA. Click on Ctrl#$ ( Credit ,ote on the utton ar or press Ctrl#$ .

3ou can toggle between voucher and 'nvoice mode by clicking Ctrl# .Pass an entry for goods sold returned from Customer "(2pecial >eys for oucher ,arration $ield(


CTR5#R( Recalls the 5ast narration saved for a speci*c voucher type- irrespective of the ledger.

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