Tally.ERP9 Year End Processcaclubindia.s3.amazonaws.com/cdn/forum/files/838849_1198139... ·...

2010

Mr. Nitin Sarda

Winjit Technologies Pvt. Ltd.

Tally.ERP9 Year End Process

w w w . w i n j i t . c o m ( W I N J I T )

T a l l y . E R P 9 Y e a r E n d P r o c e s s

29 March 2010

DISCLAIMER

THE VIEWS EXPRESSED IN THE DOCUMENT ARE AUTHOR’S PERSONAL

OPINION AND THE AUTHOR WILL NOT BE HELD RESPONSIBLE.

Document Change History

Version No. Date Description

Version 1.0 29 March 2010 Version 1



29 March 2010

Table of Contents

1 INTRODUCTION .......................................................................................................................... 4

2 PERIOD ......................................................................................................................................... 5

3 HOW TO SWITCH TO ANOTHER PERIOD .............................................................................. 6

4 STOCK IN TRADE ....................................................................................................................... 7

4.1 FOR INTEGRATED ACCOUNT .................................................................................................................... 8

4.2 FOR NON INTEGRATED ACCOUNTS (NON INVENTORY COMPANIES) ................................................................ 9

5 JOURNALS FOR TRANSFERRING THE EXPENSES & INCOMES .................................... 14

6 INTEREST ................................................................................................................................... 15

7 DEPRECIATION ......................................................................................................................... 19

8 FOREIGN EXCHANGE GAIN/ LOSSES .................................................................................. 20

9 COMPARATIVE REPORT /RATIO ANALYSIS/ PERCENTAGE, ETC ................................ 22

10 SPLITTING OF THE COMPANY DATA ................................................................................... 25

10.1 BACKUP ........................................................................................................................................ 25

10.2 SPLITTING THE DATA........................................................................................................................ 25

10.3 MANAGING THE DATA FOLDER ......................................................................................................... 27

11 HOW TO SET SECURITY LEVELS FOR PROTECTING PREVIOUS PERIOD ENTRIES

ERROR! BOOKMARK NOT DEFINED.

12 CHANGES TO BE MADE IN VOUCHER CLASSES, IF ANY / LEDGER FOR NEW VAT

RATES ................................................................................................ ERROR! BOOKMARK NOT DEFINED.

13 ABOUT WINJIT TECHNOLOGIES PVT. LTD. ........................................................................ 28



29 March 2010

1 Introduction

As everyone knows, there are number of activities to be carried out for

finalization/ closure of Accounts on the year end (i.e. 31st March ) every year in

Tally.ERP9.

There are certain procedures, reports available in Tally.Erp9 which will smoothen

the process & save the time for closure of Books as well as New Year books.



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2 Period

There is no formal concept of period in Tally.Erp9. It means, we can keep books

for more than one year in a company.

Only the following concepts are applicable in tally for defining default period

available for report & entries.

i. Period Starting from :

On the company creation screen when we set the financial period starting from =

“dd/mm/yyyy” (generally 01st of April) the default period for entry will be 12

Months from the date set. E.g. If we set financial year starting from 01/04/2009,

then default period (i.e. the period appearing when we start Tally) will be

01/04/2009 to 31/03/2010

Navigation: Gateway of Tally - > Select Company -> F3 – Alter



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3 How to switch to another period

On the gateway of tally, in the left hand upper part, the current period is

displayed. This is the default period for entries, reporting, etc. (Though internally

tally may have the data for more than one year for the company).

To Start New Financial Year (i.e Default Period for next year), we will have to

select period button on the right hand side

Navigation: Gateway of Tally -> Alt+F2 (period Button)

Enter/ Change period

From (e.g. 01/04/2009)

To (e.g. 31/03/2010

After making any entry in next financial year, Tally will automatically start new

period from next session.



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4 Stock in Trade

Exact profit will be determined only after entering the Stock values at the end of

the period. There are two methods available in Tally.ERP9 i.e. Integrated

Accounts and Non integrated Accounts.

Integrated Accounts means the stock will be reflected as appearing in the stock

summary (based on the valuation method selected for a particular item).

Non Integrated Accounts means stock value has to be entered manually. In

this type, we will have to make Ledgers entries under Stock in Hand group.

To set Integrated / Non Integrated Inventory option

Navigation: Gateway of tally -> Press F11 -> Accounting Features

Select the appropriate option



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4.1 For Integrated Account

For Integrated Account, there is no need to pass any entry, tally will by default

picks up the values appearing in Stock Summary.

The valuation is based on the settings of Item Master

Navigation: Gateway of Tally -> Inventory Info - > Stock Item -> Alter

Press F12 & confirm that advance entries in master option is set to YES

Confirm the method required for valuation (most of the time it should be FIFO for

trading items, etc is recommended).



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4.2 For Non Integrated Accounts (Non Inventory Companies)

For non integrated accounts or for companies not having inventory in Tally,

ledgers need to be opened under Stock in Trade.

E.g. Raw Material Stock, Stock of Finished Goods, etc

Navigation: Gateway of Tally ->Accounts Info -> Ledger -> Create



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For Changing or entering the values

Navigation: Gateway of Tally -> Accounts Info-> Ledger -> Alter

Select the stock ledger (e.g. Stock of Finished Goods)



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Opening Balance (on 1-Apr 2008): Set the value of opening stock

Closing Balance : Enter the date for which we want closing

stock say 31/03/2009

Then Enter the amount of Closing Stock e.g .Rs. 200000



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For entering the closing stock afterworld also follow the same procedure as

explained earlier & enter the date after previous closing balance e.g. for

31/03/2010 Rs. 300000



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The Profit & loss after setting the same will be as follows:

There is also alternate way of changing the closing stock, go to Profit & Loss

Account, then select Closing Stock.

After entering closing stock, the screen as appearing for alteration will appear.

(as explained in previous section)



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5 Journals for Transferring the expenses & incomes

There is no need to make Profit & Loss Account (it is available as default feature

in Tally)

In next year, balances will not be appearing as opening balances for expenses or

incomes (instead they will be transferred to profit & loss accounts).

Only we need to do is to transfer the profit & loss account balance to the

appropriate accounts.

e.g. In case of Non-Company entities transfer the profit & loss account to Capital

Account(s).

In case of Companies, transfer the Profit & Loss Account Balance to the General

Reserves, Retained Earnings, etc as applicable.

e.g. Dr …… Profit & Loss A/c …………….

To Capital Account (s)……………………

(Being Net Profit Transfer to the capital Accounts for the F Y 2008-09)



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6 Interest

Interest Entries will have to be made manually in Tally.ERP9 for the year end

process. E.g. Interest on Unsecured Loans, Interest to Creditors (for Delayed

Payments), Interest to Debtors ( for Delayed Payments)

This can be easily done with one of the powerful feature of Tally.

We will see the step wise module of Interest

Step 1 : Activate Interest Features

F11-> Activate Interest calculation -> YES

Use Advanced Parameters -> YES

Step 2 : Gateway of Tally -> Accounts Info -> Ledger - > Alter

Select Ledger Accounts e.g. Party 1 Account

Set Activate Interest calculation to Set



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Set the option as applicable.

Step 3 : Gateway of Tally -> Accounts Info -> Voucher Type- > Alter ->

Credit note /Debit Note as applicable

Enter New Class Name e.g. Int Adj.



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Then set the required details

Step 5 : Gateway of Tally -> Display-> Statement of A/cs- >Interest Calculation->

Select Interest Receivable/ Payable as applicable



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Step 6 : With the help of Above we can pass the entry

Gateway of Tally -> Account Voucher-> Credit Note (with Int adj Class)

This will facilitate auto entering the interest data as per the previous calculations

Alternately, based on the report available, we can pass manual entries.

(The another simpler method of calculating yearly interest without change in

interest rate is select the ledger account, then select daily balance (F6) for the

period & calculate the interest on average balance)



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7 Depreciation

As we know that in most of the cases where depreciation is charged on the basis

of WDV (not on SLM) as per provisions of Companies Act, we will have to

provide depreciation on prorate basis (i.e. on the basis of No of days of a

particular asset).

There is no Fixed Asset module available in Tally.ERP9 as on today (the

roadmap contains this module, i.e. it is available in next versions)

This can be done with the Interest Calculation feature as explained above by

setting interest rate as negative



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8 Foreign Exchange Gain/ Losses

The companies using Foreign Exchange Feature of Tally.ERP9, can make

entries for unrealized Foreign Exchange Gain/ Loss (which will be very time-

consuming job in other cases)

For calculating exact Foreign Exchange Gain/ Loss, the bill-wise details should

be strictly maintained as module (Tally.ERP9 calculations) is based on billwise

details

I. Making Class for Foreign Exchange Gain / (loss)

Navigation: Gateway of Tally->Account info-> Journal

Enter Name of the Class e.g. FEGL Adj

Mark the field use for Foreign Exchange as Yes

Enter the name of Foreign Exchange Loss / Gain Account



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For Entering the Unadjusted Foreign Exchange Gain/ Loss entry

Select Journal Voucher with FEGL Adj Class

Values will be automatically made on the basis of default calculation



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9 Comparative Report /Ratio Analysis/ Percentage, etc

There are n numbers of comparisons required at the time of closing the books of

account.

Tally.ERP9 has the facility to compare the data by columnar method

We can compare

Budgeted vs. actual (with variances)

Periodic comparisons (for trend analysis, etc)

Intercompany Comparisons

E.g. If we select Profit & Loss report

For selecting difference comparisons select Auto Column or New Column

If we select New Column, then select monthly



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We can have customized reports also by selecting new column feature

This will facilitate to have many analysis e.g. Trend analysis ,etc

We can also compare the data of one company with other company in Tally.

Open both the companies

Go to Profit & Loss Account

Select New Column & select the other Company (with period specific)



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This will facilitate to have comparisons of two companies

Also we may get the result as percentage of sales by selecting configuration

(F12)

Such types of reports are available at most of the default reports of tally.



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10 Splitting of the company data

As explained earlier, Tally.ERP9 can maintain n number of year’s data in one

company. But, sometimes we need to split the company.

Splitting of company means bifurcating the existing data of one company into two

companies with some cutoff date.

Following steps should be followed:

10.1 Backup

Take Backup of the existing data in some other locations

10.2 Splitting the data

Select the company

Select the option F3 (Cmp Info)

Select the option Split Company Data



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Select the appropriate date for Split up. i.e. Starting date for new

company. (e.g. Suppose we want to split data for FY 08-09 & FY 09-10 we

will have to select 01.04.2009)

Tally will confirm for Splitting up

After Splitting up, there will be three companies

1st – Existing Company (i.e. as it is before Split Up)

2nd – New Company ( for the period Up to the date of Splitting e.g. up to

31.03.2009 in our above case)

3rd – New Company ( For the period after the date of Splitting e.g. From

01.04.2009 in above example)



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10.3 Managing the Data Folder

Now we will have to move to the data folder by shutting down all the companies

from Tally.ERP9.

Just copy & paste the older company in Old Data Folder (Path as decided by us)

Copy & paste the Co1 in FY 0809 Folder (Path as decided by us) & keep only the

Co2 (i.e. Co. for continuation in Current Folder)

This will facilitate easy access at the time of opening of data from tally

After Splitting up of the company, both companies’ data are not connected

internally.

Therefore, if we are going to change some data in CO1 it will not affect the

balances of CO2 & we will have to change opening balances in Co2

manually (if required)



29 March 2010

11 About Winjit Technologies Pvt. Ltd.

Winjit is a fast-growing provider of software consultancy, design and

development services, headquartered in the India. Winjit Technologies has a

proven track record of successful development and implementation of solutions

on different technologies for a variety of customers.

With state-of-the-art delivery centres in India, we have a team of competent

professionals with expertise in different technologies. Our development centres

have all the necessary communication links and hardware / software for

development of commercial applications, web portals and web sites.

To maximize value for the customer, our development centres follow ISO 900

certified processes. Our Project Management Methodologies is a blend of finest

practices tuned to support the engagement models.

With extensive experience in consulting, training and software development, we

have successfully completed a number of projects on a wide range of hardware

and software platforms. Continuing investments in net centric technologies,

client/server technologies, software development methodologies, project

management systems, quality assurance processes have helped deliver quality

solutions on time, and more importantly within budgets.

We have adequate Quality management systems which help the organisation in

organised processes and delivering value to its customers. So we have basically

a process-driven architecture for entire project lifecycle.

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