tally training manual

TALLY ERP 9 TRAINING MANUAL

Tally ERP 9 is a resource enterprise planning an improvement from the previous Tally 9 in

which various advancements have been included.

Resource enterprise planning is an advanced software system which can be used for both large

and SMEs. In which it incorporates all the information that a business organization needs to plan

and strategize for business goals. Tally ERP 9 goes on long way in inventory management,

financial reporting, Book-keeping, auditing techniques/facilities, payroll management, Bank

reconciliations, information and database for clients etc.

Tally ERP 9 is a user friendly software, easy to learn and a useful accounting software in

controlling and helping business achieve their financial goals. For the effectiveness and

efficiency of this software, the documentation has to be transparent and organized, for example,

the purchasing and selling transaction documents have to be well documented and organized for

example , invoices availability, validity and fully documented with all available information

orders, delivery notes, vouchers, debit and credit notes, proforma/quotations etc.

Tally ERP 9 offers a unique facility where a business owner can access his/her accounts from

anywhere in the world using remote access as it has internet connectivity where you only have to

input your business remote access password saving time and money.

Its also used for printing of documents for e.g. invoices, orders, delivery notes, receipts, etc.

PROCEDURES MANDATORY TO THE TALLY ACCOUNTING SYSTEM.

1. Opening up a company (This is a procedure which is designed to record all data

pertaining to the company/business from address, location, currency to be used,

information entered should be accurate because this information will appear on all

correspondences with clients and stakeholders that is; on all invoices, orders, receipts,

customer and supplier statements etc and it’s the foundation for all configuration in the

system).

Go to Gateway of Tally, Company Information, Create Company.

The company creation screen appears;

a) Name (Enter the name of the company whose books are being opened)

b) Mailing Name and Address; the mailing name will be used as inclusion on any report and

correspondences for example, suppliers statements, debtors statements, balance sheets,

profit and loss etc.

c) Statutory Compliance for

Select the country from the list of countries, since Uganda does not appear on the list, you are

required to enter none. Any country that will appear on the list, you enter the base currency

symbol will be used but for our case we shall enter none.

d) State (you can select the appropriate state from the predefined list but since Uganda does

not exist, select none.

e) PIN Code (Specify the PIN Code- Postal Index Number of the specified address (for

Uganda’s case, ignore).

f) Telephone- Enter the Telephone number.

g) Mobile number- Enter mobile number of the company.

h) Email Address- Enter the email address that will be used to email documents, reports and

data from Tally ERP9.

i) Enable how to backup- Set this to Yes, if you want to enable the automatic backup of

Tally ERP 9, the data backup is stored in the data folder of the respective company.

j) Currency- Currency Symbol is the symbol of the base currency. If the currency that will

be used to maintain the books of accounts.

k) Maintain.

Tally ERP 9 displays a drop down for the type of company with two options Accounts only

and accounts with inventory.

Select accounts with inventory (if you have inventory transactions) to maintain both financial

and inventory.

l) Financial year from- The books of accounts of a company aremaintained for a stipulated

period of time for example, 12 months for the most companies.

This period is referred to as the Financial Year, for example; if you enter April 1, 2008 as the

date, the financial year will be form April to March ending with March 31 2009.

If you enter October 1 2008, as the financial year from then, the financial year will be from

October 2008 to September2008 ending with 30th September every year.

m) Books beginning from- Tally ERP 9 presumes that wish to maintain books from the

beginning of the financial year automatically.

The concept can be applied even when you are migrating to Tally ERP9 form any other

system or from a Manual accounting system on any day during the financial year. Close

books in that other system on the previous day and start books on Tally ERP 9 form this day.

You are allowed to give Opening balances of all ledger accounts including revenue accounts.

n) Tally Vault Password- This is an enhanced security system, which allows for encryption

of the company data. Encryption involves converting normally accessible. Tally

information into unrecognizable information, which can only reconverted by authorized

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. Remember if the password is forgotten, one can not access the data.

o) Use security control- Set this to Yes, if you want to initiate a password, protected system

to control access to the system else set this to No.

If you opt for Security Control, the system offers a comprehensive password based access

control to different features of Tally ERP 9 based on authority created by administrator.

Assuming the Tally Vault Password and use security control is set to yes, enter the name of

administrator, password and repeat in the respective fields.

p) Use Tally audit features- Allows you to track changes in accounting information for easy

control of all financial data.

1. On accepting the company creation screen, if you have specified Tally Vault Password.

2. Then Tally ERP 9 prompts you to enter the name of user and password, if any.

3. After verification, the system imports the latest statutory masters. Wait till the screen

shows 100%, then the import is complete.

4. This computes the company creation process.

An explanation on the fields on the buttons of the company creation screen follows;

i. Base Currency Information- Found in the bottom forms of company creation screen.

This is the currency in which your accounts would be maintained. Financial reports

are prepared in the base currency and these are normally required to be submitted to

local statutory authorities, for example; URA, Banks etc.

The base currency information in Tally ERP 9 varies with the country selected for statutory

compliance.

You can record transactions and raise invoices in foreign currency and also maintain bank

accounts or ledgers in foreign exchanges when required.

i. Base Currency Symbol- The currency symbol gives earlier in the company

creation screen is displayed here automatically.

The system uses this currency symbol in reports whenever necessary.

ii. Formal Name- Full name of the currency specified.

iii. Number of decimal places- This is set to two automatically by the system (by

default) but for some currencies for example; the Uganda Shillings, this may

be set to 0 as the Ugandan currency does not require this.

iv. IS Symbol Suffixed to amounts- For countries which specify the symbol after

the amount (values). This facility is provided for example; $5000 or Uganda.

If you want the amounts to show Ush. 1,000,000, this can be ignored for

showing values in Uganda Shillings.

v. Show amounts in millions- This is useful for companies which require

reporting the financial reports in millions.

The other facilities would be ignored.

CREATING ACCOUNTS- Cash and Bank.

This facility helps you create various accounts in that will be used in entering various data about

transactions in the company operations here you can create expenditure, sales, purchases,

liabilities, assets, etc.

1. Gateway of Tally (Introduction stage to all Tally ERP 9 accounts/data).

2. Under masters, click on the accounts info- This allows/contains masters like create, alter

and display functions.

3. Go to ledgers.

4. Go to create.

Then the ledger creation screen appears. Under;

a. Name- Create a ledger for example, open a cash account for the business or open a bank

account for the business for example; cash operations or stanbic bank account, all

transactions of the cash and bank will be recorded and updated. These accounts facilitate

controls in the inflows and outflows of cash in the business.

b. ALIAS- This allows you to enter another name for the account its advised to always

identify a ledger with an account code for example, you could give a code of 1000- for

cash accounts created for the business and 2000- for bank accounts, 3000- for expense

accounts, 4000- for debtors accounts.

In the ledger screen say, 1000 cash operations or 2000 Stanbic bank and ALIAS you can say

Cash Operations or Stanbic bank.

ALIAS means also known as, which means you can give another name for the account which

could be used for external reporting purposes.

c. Under- Cash accounts, bank accounts etc should all be entered under the group to which

they belong for example 1000 cash operations will be under cash in hand in the group

accounts. This will be under current assets which will appear. In the balance sheets

(financial report) all the bank and cash balances will appear in the current assets under

cash in hand.

For debtors and creditors accounts (Accounts receivables and payables). These should be

under Sundry debtors and Sundry creditors respectively in the group accounts and details of the

bank accounts, creditors and debtors details should be entered to allow for easy accessibility of

all required information.

d. Opening Balance- This is the balance as per the dates when the books were opened as

shown. This will apply for cash, bank, debtors, creditors, stock etc.

e. Accept?- If you say yes, then the above details are saved into the system.

ENTERING TRANSACTIONS

This is the facility that allows you to enter the various transactions data in the books called

Book-Keeping. We shall enter all transactions from sales, cash, purchases etc.

From Gateway of Tally (always introduction point).

1. Accounting vouchers.

2. Go to the right pane and click on the different options available. If you are

entering a cash or bank receipt, click on Receipt, for payments made in either bank or cash click

on payments, for sales click on sales purchase. Click on purchases however you can use Journals

to enter sales or purchases transactions.

Entry of data using credit and debit Notes.

This facility enables easy entry of data as both the account to be debited and credited are easily

entered.

a) Go to Accounting Vouchers.

b) Go to configure on the right pane option.

c) Under the payment configuration window, click on use single entry mode for

payment, receipt, and contra, say yes and use cr/dr instead of to/by, say yes.

Using Manual Numbering.

1. Go to Gateway of Tally and click on Accounts info.

2. Go to Voucher types.

3. Go to Alter.

4. And a list of voucher types will appear, based on the transactions you are entering, if you

are entering payments. Highlight a payment voucher, if you are entering sales, highlight a

sales voucher, if you are entering purchases, highlight purchases voucher.

5. Then the voucher type alteration window appears;

a. Under method of voucher numbering, highlight/click on manual and then enter.

The main aim of this facility is to allow numbering of documents based on their serial numbers

for example the invoice number, the voucher numbers, the receipt number for easy identification

and reference from the Tally ERP 9 system to the file records.

Using contra entry.

For transactions of the same nature for example; transfer of cash from cash to bank or bank to

cash accounts, we use the contra entry facility on the right pane.

1. Go to Gateway of Tally.

2. Go to Accounting Vouchers.

3. When the accounting voucher creation screen appears, click on the F4, contra to button

on the right hand pane and enter.

4. Enter the transaction.

Using optional vouchers

This facility helps in making sure that transactions entered in the systems are correct and

accurate to minimize on the errors and inefficiencies of the manual system.

When this facility is activated, the data entered in the system is not directly saved but is

saved in the optional facility where a print out is made and someone else confirms the

transactions from the original documents/vouchers and when there are any errors made, then

they are rectified and eventually the transactions are confirmed in the system.


2. Go to Accounts info.

3. Voucher types.

4. Alter.

5. Based on the transaction type you are entering for example payments, click on payment

vouchers on purchases or contra etc.

6. In the voucher type alteration window, click on make optional as default to yes and enter.

In this way all transactions will first be confirmed before being saved in the system.

Creating cost centers.

A cost center is an area in the business which incurs expenditure. This can be an office, a

job/contract or a department. The main aim of this facility is to help the business owner know

how much he spends on a particular job/contract or area and the sales with the eventual profit for

easy control of the business.



3. Go to cost centers

4. Go to single cost center to create.

5. When the cost center creation window appears under name- Enter the name of the cost

center for example office, DFCU job, SACCO 1 job etc.

6. Ignore the rest and enter in this way you have created a cost center.

Printing vouchers, Receipts, Invoices, Orders etc.

This facility helps to automatically printout receipts vouchers, invoices, delivery notes etc

automatically with all accounting features. These documents are professional and improve on the

reputation and image of a business especially for a business which wants to deal with large

corporate businesses.



3. Go to voucher types.

4. Go to Alter.

5. Go to Enter the voucher type you would like to print for example sales, payment

vouchers, receipts, sales order etc.

6. When the voucher type alteration window appears, activate the printing section to yes. In

this way, after entering the details, the Tally ERP 9 system will ask you if you want a

print out. In this way it would be very convenient in case you want to issue out an

invoice, receipt to a customer.

STOCK GROUP CREATION

This facility helps in creating stock groups in which other classification will be created for

example, here we create groups like inverters, batteries, bulbs, wires, and solar panels etc. this

will help the business in easy organization and arrangement of stock and also reporting.


2. Go to Inventory info.

3. Go to stock groups.

4. Under single stock group, go to create.

5. When the stock group creation screen, enter the name of the group for example, inverters

batteries, and solar panels.

6. Can quantities of items be added, say yes, then enter follow this procedures for other

groups.

CREATING STOCK UNITS.

Creating stock units helps in making measurements for various stock items that will be

purchased or sold.

The measurements in this case will be;

For solar panels, batteries and inverters, measurements will be in pieces for wires- rolls and

meters etc.


2. Go to inventory info.

3. Go to units of measure.

4. Go to create.

5. Under unit creation in symbol, enter the abbreviation for example PCS (pieces), meters

(mtrs), rolls (rls). And enter.

CREATING STOCK ITEMS.

Under this facility, we shall create the various classifications under the stock groups, this will

enable easy issuing and purchasing of stock in the inventory database. For example, under the

solar panels group we shall have stock items for example; 7.5 watts panels, 3.5 watts panel, etc.


2. Go to inventory info.

3. Go to stock items.

4. Under single stock item create.

5. Under the stock item creation window, enter the stock item for example; 75 watts bulb

which will be under bulbs, the units will be pieces.

6. Under opening balance, enter the quantity in stock, under the rate input the initial

cost/purchase price and the value will appear automatically.

In this way, we shall create a stock database with its value. Do this for all other stock items.

Accessing Data/ Information.

This facility will help in accessing all information in the accounts that have been created and the

transactions entered.


2. Go to Display.

3. Go to Accounts books.

4. Go to ledgers.

5. Or DAL.

6. All accounts will appear.

Accessing Reports from Accounts.

Through this procedure, we shall be able to access all reports which will help the business owner

assess the value of his business, know the profits, assess performance.


2. Under reports, click on the report you are interested in for example; balance sheet, profit

and loss accounts, stock summary and Ratio analysis.

a. The Balance sheet: shows the assets and liabilities and eventually showing the

financial position of the business, investors, banks, URA and other statutory

authorities are very much interested in this report.

b. The profit and loss accounts: Shows the incomes and the expenditure and eventual

profit/loss, this helps the business owner control his/her business effectively.

c. The Stock Summary: Shows the quantity, rate per item and the eventual value of

stock we have in the stock database at any given period of time.

d. Ratio Analysis: This enables the business owner appraise/measure the value and

performance of his business.

To interpret the above reports effectively, accounting knowledge is required that’s why I have

been equipping each dealer with accounting knowledge for this purpose.

Accessing the movement of stock.

With this procedure, we shall be able to know our opening and closing inventory balance. The

various purchases of stock when it was purchased, the eventual sales (issues) and the

corresponding values and the closing stock value and amount.

1. Gateway of Tally.

2. Display

3. Inventory books

4. Under inventory books, click on the items you would like to access.

Accounts to be Opened up.

Cash:

The cash operations account: here we shall record our opening balance as per the financial

reporting date, record all our receipts (inflow) and outflows of cash. This account will help

control the cash flows in the business. This will be under cash in hand in the Tally ERP 9 system.

Bank:

We shall open up accounts for the various Bank accounts we hold for example Stanbic bank,

Centenary bank, DFCU. The purpose of this is to track all inflows and outflows of cash from our

bank accounts for easy control.

Here we shall have to enter the opening balances from the bank statements from which we shall

start making all transactions, all bank accounts are under. The bank accounts groups in Tally

ERP 9.

Expense Accounts:

We opened up expense accounts in order to track the expenditure the business incurs for proper

control. These included;

1. Transport.

2. Stationery.

3. Advertising and publicity.

4. Fuel.

5. Maintenance.

6. Clearing and handling.

7. Salaries and wages.

8. Rent

9. Utilities

10. Insurance costs.

11. Bank charges

12. Travelling expenses.

13. Depreciation.

14. Provision of losses.

Sales Consultancy:

These sales accounts will record how much income is earned from installation and consultations

on jobs/contracts.

Sales Account:

This account will record how much income is earned from items like wires, bulbs, sockets etc.

Fixed Assets Accounts

These are assets which are brought by the business to help in the operations of the business and

there is no intention of selling the assets for example computers, furniture, motor vehicles,

generators etc. These accounts are important in that they are reported in the balance sheet which

shows the financial position of the business and the financial picture of the business.

The balance sheet is an important financial report which is demanded by banks and other

statutory authorities and also for building purposes.

Accounts opened up in tally erp 9;

1. Furniture and fittings; in here, we record assets of the furniture of the business. The file

boards/shelves.

2. ICT equipment; we record assets like computers, modems and other items connected to

ICT.

3. Motor vehicle; we record assets like motor vehicles.

4. Tool and Equipment; we record tools used on the job, generators, printers and other

machines.

When we are opening up fixed assets accounts in Tally ERP9, they will be under fixed assets

group all the records and values of these assets will appear in the fixed assets in the balance

sheet.

Under expenses, we have direct and indirect expenses.

Direct expenses can be attributed to a specific cost center for example, transport or travel

expenses spent on a job, a direct expense. Rent for the office is a direct expenses but power, bank

charges, interest charged on loans are all indirect since they can not be attributed to a specific

cost area.

In Tally ERP 9, each expense account should fall under direct and indirect as deemed by the

business owner.

Purchase Accounts:

We open up purchase accounts, to show us what items we have purchased and what amount of

money was spent.

These are under purchase accounts groups in Tally ERP 9.

Sales Accounts:

We also open up sales/turnover/income accounts to track how much sales/income we make in a

given period of time and which items bring in more income and vice versa. These include;

i. Sales Hardware: Recording sales for inverters, batteries and solar panels.

Creditors’ Account/Accounts Payables.

The creditors account will show all the transactions that take place between the business and all

suppliers who give us on credit.

In Tally, all the individual creditors’ accounts will be under sundry creditors.

The main aim of this account is to show the true profit the business makes. In Tally, the private

accounts will be under current assets group.

Debtors Accounts (Accounts Receivables)

This will record all the invoices we issue to clients and customers and the subsequent payments

that are made on the account. This account will show how the business is demanding from a

customer especially us. Most of these may be big (corporate businesses for example; banks and

sales which only make lump sump payments and the accounts need to be tracked.

In Tally ERP 9, the various debtors’ accounts will be under sundry debtors as the group

accounts.

tally training manual

Documents