TALLY Guide



TALLY
Complete Book-keeping

Tally.ERP 9 maintains all books of accounts starting from record of vouchers to ledgers etc. You can use different types of vouchers like payment, receipt, sales, purchases, receipt notes, delivery notes and adjustment entry vouchers like journals, debit & credit notes. Tally.ERP 9 inherits the principle of double entry system of book keeping and thus reduces possibilities of errors during voucher entry

Creating a Company
Creating 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 > (Alt+F3) Company Info. > Create Company

Maintain

Tally.ERP 9 displays a drop down for the Type of Company with two options Accounts only and Accounts with Inventory
Select Accounts only if you do not have any inventory transactions (suitable for professionals and corporate offices).
However, at a later date (if required) you can choose to alter the information as Accounts-with-Inventory. Select Accounts-with-Inventory, to maintain both financial accounts and inventory.

Financial Year From

In most countries, the books of accounts of a company are maintained for a stipulated period like, 12 months.  This stipulated period is referred to as the Financial Year.
The stipulated period of the financial year is 12 months in most countries. Tally.ERP 9 automatically considers 12 months from the date you give here as the Financial Year.
For example, if you enter April 1, 2008 as the date, the Financial Year will be from April to March ending with March 31, 2009
Tally.ERP 9 allows you to maintain data for multiple years by changing the period (Alt+F2) at the Gateway of Tally. In addition, you can also specify the date of actual establishment of the company (date of incorporation)

Books Beginning From

Tally.ERP 9 presumes that you wish to maintain books from the beginning of the financial year. Hence, Tally.ERP 9 displays the date given in Financial Year From field automatically.


TallyVault 

Password




TallyVault is an enhanced security system, which allows for encryption of the company data. Encryption involves converting normally accessible Tally information into unrecognisable information, which can only be reconverted by authorised persons.

Give a password here and repeat the same in the Repeat field. This basically results in the creation of an encrypted company whose information is not accessible to users other than the password holder.

Use Security Control?

Set this to Yes, if you want to initiate a password-protected system to control access to Tally.ERP 9 data. Else, set this to No.
If you opt for security control, Tally.ERP 9 offers a comprehensive password based access control to different features of Tally.ERP 9 based on authority lists created by the Administrator. For more information refer Data Management in Tally.ERP 9.

Loading a Company

You can use the Select Company option in two ways, from the Company Info. Menu OR by using the button F1: Select Cmp (available on the Gateway of Tally screen). Press Enter on Select Company or use the button

Tally.ERP 9 displays
1.      Company Name (All the companies created are displayed)
2.      System-generated code for each company displayed
3.      The Financial Year information relating to the number of years data present in the company

Select the required company to go to the Gateway of Tally for that company
Gateway of Tally is the screen that appears on selecting a company. The Gateway of Tally menu differs based on the type of company selected. An Accounts Only Company has a different Gateway of Tally menu from that of an Accounts-with-Inventory Company

The left side of the Main Area gives information on:
1.      Current Period – which is the currently loaded company's accounting period.
2.      Current Date – This is the date of the last Voucher Entry for the selected company.
3.      List of Selected Companies – This displays the name of the loaded company.

The Main Area gives information on:
1.      Creation of Accounting Masters and Importing Master information
2.      Creation of Accounting Vouchers and Importing transaction information
3.      Viewing and printing financial reports using the information given in Masters and Transactions.

Configurations in Tally

You can configure Tally.ERP 9 for masters, voucher entry, printing, connectivity, licensing, shop and other general settings by clicking on F12:Configure button or by clicking the F12 button on the keyboard.

Depending upon the screen, the configuration settings are displayed accordingly. For example, by using F12 in the voucher entry screen, the voucher entry configuration settings are displayed.

This feature enables you to set the various Accounting Features required for transaction entries.

Accounting Features

Go to Gateway of Tally > F11: Features > F1: Accounts

General

Integrate Accounts and Inventory

This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set to Yes, it extracts the stock/inventory balance figures from the inventory records and provides a drill down to the Stock registers from the Balance Sheet.

If set to No, it ignores the inventory books figures and picks up manually entered closing stock balances from the ledger account created. This facilitates the maintaining of  accounts and inventory separately.

Stock records often contain compensating errors caused by wrong allocation to items. This feature enables finalisation of financial books without waiting for the reconciliation of stocks

Income/Expense Statement Instead of P & L

By Default, this option is set to NO.

If set to Yes – Tally.ERP 9 displays Income & Expenses A/c instead of Profit & Loss A/c in the Gateway of Tally.ERP 9 Menu. Income and Expenditure statement generally used for Non-Trading accounts and Profit & Loss a/c are used for trading accounts.

 Maintain Bill wise Details

The Bill-wise facility is made functional by setting this option to Yes. By activating the Billwise feature,  the ledger masters under Sundry Debtors and Sundry Creditors automatically displays an additional option called Maintain balances bill-by-bill. On setting this option to Yes, an additional option Default Credit Period is displayed..

When you enter details of sales and purchases with the Bill-wise option activated, Tally.ERP 9 prompts you to identify the invoice with an appropriate reference number. The reference can then be used to allocate payments to the correct invoice to maintain an accurate account of outstanding.
(For Non-Trading A/cs also)
If you want to maintain bill wise details for Non-Trading Accounts also, set this option to Yes. Bill wise Details for Non-Trading Accounts is useful in those cases where one needs to track either an installment to be paid or a loan amount to be received over a

Cost/Profit Centres Management

 Maintain Payroll

Set this option to Yes if you want to maintain Payroll information on Tally.ERP 9 for the selected company 

Maintain Cost Centres

A Cost Centre can be defined as a unit of an organization to which transactions can be posted. When only costs or expenses are allocated to these units, they are referred to as Cost Centres. The Cost Centre feature is activated by setting this option to Yes.

More than ONE Payroll/Cost category
Set this option to Yes to create more than one Payroll or Cost Category.
Use Pre-defined Cost Centre Allocations during Entr
et this option to Yes to define Cost Centre Allocations. Refer Cost Centres and Cost Categories for details.

Invoicing

Allow Invoicing

Set this option to Yes, to create Sales and Purchase vouchers in the invoice format. The advantage of using the invoice format for sales invoice entry is that it enables automatic calculations of Duties and Taxes accounts.
Use Debit/Credit Notes
The Debit Note and Credit Note voucher types are made available only if this feature is set to Yes.
Set this option to Yes to create Debit Notes in Invoice Mode.

CREATING LEDGER 

Go  to Gateway of Tally > Accounts Info > Ledgers > Create
Inventory values affected: 
This is applicable for Companies maintainig Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.

Cost Centres are applicable: Tally's concept of Cost Centres  allows an additional dimension to a transaction. .
You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. 

If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes.
Maintain Balances Bill-by-Bill: This option is applicable when you want the balances to be maintained Bill by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is displayed as shown.

Method of Voucher Numbering

Go to Gateway of Tally > Accounts Info/ Inventory Info > Voucher Type > Alter

Automatic

This method is flexible. If Automatic method is selected, then Tally.ERP 9 numbers the vouchers automatically.

Manual ( Manual Numbering is advisable for Purchases, Sales, Payment Voucher etc)

This method allows you to number the vouchers manually. It does not check for the sequence of the numbers and permits you to specify anything that you wish in the voucher number field. However, you may choose to prevent entry of duplicate numbers. If you would like to do so, then set Prevent Duplicates to Yes.
1.      Prevention of Duplicates is possible if you enable the option at the time of creation. You may enable it later (by alteration) only if there are no transactions of this voucher type.
2.      If you face difficulty due to existing transactions, just create another voucher type for preventing duplicates of subsequent voucher numbers.

INVENTORY

Inventory Information

The Inventory Info menu, lists the inventory masters of the company, using which you can create, alter and display the inventory master details.
Go to Gateway of Tally > Inventory Info

Stock Items are purchased or sold on the basis of quantity. The quantity is measured by Units. Hence, it is necessary to create Units of Measure. 

You can have simple units such as numbers, meters, kilograms, and pieces or compound units like box of 10 pieces [1box =10 pieces]
Go to Gateway of Tally > Inventory Info. > Units of Measure
You can create Simple and Compound units.

Go to Gateway of Tally > Inventory Info > Units of Measure > Create
Eg:  Type  :  Simple
         Symbol : kgs
Formal Name  : Kilogram
Number of Decimal Places : 3

Number of decimal places

In this field you can specify the decimal places for the Units from 0 to 4. This field is useful for Units measured in fractions.
Example:
Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places required is 3.
Creating a Stock Group
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group)

Name of Stock Group

Enter the name of the Stock Group.

Under

If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

Creating a Stock Item

To create a Stock Item,
Go to Gateway of Tally > Inventory Info. > Stock item > Create
1.      Enter the name of the Stock Item e.g. Hot Rolled Coil in the Name field.
2.      Select the Group Name e.g. Primary in the Under field.
3.      Select the unit of measurement e.g. Kg of the stock item in the Units field (Use Alt +C to create Unit of Measurement).
4.      In Tariff Classification field select the applicable tariff classification e.g. Coils from the List of Tariff Classifications.
5.      Enable Set/Alter Excise Details to Yes. Set Excise Details to Yes to display the Excise Details sub screen

ACCOUNTING VOUCHER ENTRY CONFIGURATION

Go to Gateway of Tally > F12: Configure > Voucher Entry
VOUCHER  ENTRY








From GWT

Accounting Vouchers    





All Data entries (except creating Ledger Accounts and entering opening balances) are done



through 'Accounting Vouchers'















Payment     
F5
 Transactions which involves payment of cash or cheque





                    is entered using 'Payment Voucher"












Receipt          
F6
Transactions which involves Receipt of Cash or Cheque





                    is entered using ' Receipt Voucher"












Purchase
F9
All Credit Purchases entries are done using "Purchase Voucher"











Sales     
F8
All Credit Sales entries are done using 'Sales Voucher'












Contra     
F4
Payment or Receipt entries which involves Cash to Bank or one Bank to



another Bank is entered through 'Contra Voucher'