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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
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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.
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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
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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.
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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).
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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
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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.
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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.
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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.
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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
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Recording Classifying Summarizing Analyses and Interprets Communicates Protection of the business property
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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
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Ignores non monetary items Based on estimates Personal influence Historical cost Fails to provide timely information
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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.
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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
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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
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Revenue (equity) Credit
Expenses (equity) Debit
Traditional Approach
Personal A/c
Real A/c
Nominal A/c
Modern Approach
Capital Liabilities
Assets
Revenue Expenses
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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
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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
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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
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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.
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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.
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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.
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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)
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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
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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
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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).
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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 .
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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
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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
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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.
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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.
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Loading a company : Automatically by tallyUsing the select company option Select company Tally displaysCompany nameSystem-generated code for each
companyThe financial year information
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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
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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
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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
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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.
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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
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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.
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Configuration is to be done before creating and starting work on a company
Press F12 or configure button
General
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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
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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
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Printing option allows you to configure printing of voucher, invoice and statement layouts
The general configuration is applicable for all print reports
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Payment /receipt/journal vouchers, credit note/debit note
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Confirmation statements serve to confirm customers, suppliers, lenders, borrowers.
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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
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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
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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
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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
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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
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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
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Gateway to tally>account info>group>create
Name of group Alias Under : sub classification under existing
group Nature of group : additional informationTally 9
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Group behaves like sub-ledger Net debit/credit balance for reporting Used for calculation Method to allocate when used in
purchase invoice
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Gateway of tally>accounts info>group>alter
Select the group to be deleted Press alt+D to delete
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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
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Gateway of tally>accounts info>ledger>create(single ledger)
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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
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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)
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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
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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
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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
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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
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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
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Creating accounting vouchers in tally Gateway of tally>accounting
vouchers Default voucher entry screen is
payment voucher screen
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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
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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
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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
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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.
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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
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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
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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.
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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 .
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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.
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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.
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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
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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
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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
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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.
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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.
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Gateway of tally>accounts info>voucher type>create
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Type of voucher Abbreviation Method of voucher entry Use effective date for voucher Use common narration Narration for each entry Printing Voucher class
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Security controlTwo default security levels: Owner Data entry
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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.
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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All items(automatic columns)
Chg Vch : use this option to view a different register from within existing register
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Registers for statistics : drill down a specific type of voucher to view details
Gateway of tally>display>statements of account>statistics
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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
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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
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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
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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
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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
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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
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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
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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
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Inventory info contains following masters:
Stock group Stock categories Stock items Godowns Budgets Voucher types Units of measure
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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
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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
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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
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Stock item : Gateway of tally>Inventory
info>Stock item>Single create
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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
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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
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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.
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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
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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
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Obtain reorder status : gateway of tally> display> statements of inventory> reorder status
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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
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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
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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
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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
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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
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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
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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
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Creating a manufacturing journal Gateway of tally> Inventory info>
voucher type>create
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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
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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
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Creating sales order : exactly like purchase order entry. Also depends upon configuration settings
Gateway of tally> inventory vouchers> F5: sales order
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View order position : view the order position in stock summary
Gateway of tally> stock summary> F1:detailed
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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Transfer analysis : gives the movement detail for each type of stock journal. This is a very useful costing and waste analysis tool
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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.
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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
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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
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Statutory reports: the menu will appear depending upon statutory features enabled. F11 features>statutory and taxation
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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
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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
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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.
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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
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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
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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
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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
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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.
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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
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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.
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Payment of VAT in Tally: The journal and payment voucher
entries for the payment of VAT are used
Journal entry
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Payment voucher :
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Purchase return-debit note:
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Sales return-credit note
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