2010
Mr. Nitin Sarda
Winjit Technologies Pvt. Ltd.
Tally.ERP9 Year End Process
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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
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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
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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)
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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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