TALLY ERP

(Inventory & Payroll)

HITEC, Khandsa Road, Gurgaon

Contact - 9891665578

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 Inventory

Creating a Stock Group

Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single
Stock Group)

A brief description on each of the fields in the Stock Group Creation screen follows:

Name

Enter the name of the Stock Group to be created. For example, Grade One.

Alias

Enter additional name apart from primary name [if required]. You can create any
number of additional names.

Under

Specify whether it is a primary group or a sub-group of another group, by selecting

from the list.

Press Alt+C to create a parent group, if you do not have it in the list.

Can quantities of items be ADDED?

This field pertains to information on measuring the units of the Stock Items that you
would categorise under the Stock Group.

The Stock Items categorised under the group should have similar units for them to be
added up. You cannot add quantities in Kgs to quantities in Pcs.

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Stock Categories

Stock Category offers a parallel classification of stock items. Like stock Groups,
classification is done based on similarity in behaviour.

The advantage of Categorizing items is that you can classify the stock items (based on
functionality) together across different stock groups which enables you to obtain
reports on alternatives or substitutes for a stock item.

You now have the details of TFT and CRT products, duly classified. You can also view
the Monitor classification.

For enabling Stock Category option in the Inventory Info menu, press F11 >
Inventory Features > Set Yes for Maintain Stock Categories.

Go to Gateway of Tally > Inventory Info. > Stock Category

Creating a Stock Item

Two Modes of Creation:

1. Normal Mode

2. Advance Configuration Mode.

Creation of Stock item in Normal Mode:

Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under
Single Stock Item)

Stock Item creation is displayed as shown:

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A brief description of each field in the Stock Item Creation screen follows:

Name

Specify the name of the Stock Item.

Alias

Specify the Alias name of Stock Item (if required).

Under

This field will show the List of Groups. Here you can select the Stock Group to which
the Stock Item belongs. By default, Primary Stock Group appears in this field.

Note: You can create a new stock Group by pressing ALT+C at this field.

Units

This field will show the Unit List. Here you can select the Unit of measurement
applicable for the stock item. By default, Not Applicable appears in this field.

Note: You can create a new Unit by pressing ALT+C at this field.

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Rate of duty

Specify the Rate of Duty applicable for the stock item. This field is used for the
calculation of excise duty or if duty is based on item rate. During Invoicing, whenever
you select a Stock Item, the Rate of duty entered here is displayed in the Invoice
creation screen.

Note: In F11 Inventory features, if Allow Invoicing is set to No then Rate of Duty
field will not be visible.

Tariff Classification

Specify the Tariff Classification for the item, if applicable.

This field will appear only when you specify a value in the Rate of Duty field.

Opening Balance

Specify the details of Opening Stock, if any, for the Stock Item as on the date of
Beginning of Books.

1. In the Quantity Field, specify the stock item Quantity, say 5 Nos.

2. In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece.

3. In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying

the Quantity and Rate. You can also edit the value, Tally.ERP 9 automatically
refreshes the Rate field accordingly.

Creating Simple Units of Measure

You can create Simple and Compound units.

Go to Gateway of Tally > Inventory Info > Units of Measure > Create

The Unit Creation screen is displayed as shown.

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A brief explanation of each field in the Unit Creation screen is given below:

Type

This field will show the Type of Units.

Simple

Compound.

Simple units are nos, pcs, etc. Compound unit is a combination of two simple units.

By default Tally.ERP 9 will show the Simple unit for creating the unit of measure.

You can select the Compound Units by clicking on that field or by using SHIFT+TAB
[cursor will go to the previous field].

Symbol

Define the symbol of the unit, e.g., Nos. This symbol is used in all displays and
printouts.

Formal Name

Specify the formal name of the symbol, e.g. Numbers. This formal name is useful
during the consolidation of data of different companies, where the symbols might be the
same but are assigned to different units. The formal name will be used to match them.

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.

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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 Bill of Materials for a Stock Item

This is useful for manufacturing organisations and can be set up through F12:
Configure. The Bill of Materials option is displayed in the Stock Item Creation screen
only after entering a unit of measure in the Units field.

1. Go to Gateway of Tally > F12: Configure > Select Accts/Inventory Info > Set
Allow Component List Details (Bill of Materials) to Yes

A Bill of Material should be available while manufacturing an item. This is done

through a stock journal. It is advisable to create a new voucher type, say, Mfg Journal
which is based on Stock Journal.

Let us create a new Stock Item Television and specify its BoM.

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

The Stock Item Creation screen is displayed as shown.

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Some information like Batches, Alt. Units etc. depend upon the company features,
configuration and invoicing set-up. For details on fields other than Set Components
(BoM) refer to the Stock Item Creation section under Inventory Information.

A pop-up list for the components is displayed which has to populated as shown below.

Unit of Manufacture

Specify the appropriate number of finished products that will be manufactured. While
manufacturing and recording through a stock/manufacturing journal, record the item in
multiples of this unit of manufacture. The components are multiplied by the same factor
automatically. You are allowed to alter the components to reflect actual consumption, if
there is a change from the BoM.
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Item, Godown (Location) and Quantity

Enter the name and quantity of the component. If there are multiple Godowns or
Locations, specify the storage location for the item.

Enter the options for all appropriate fields for the stock item and accept the
screen.

Manufacturing Journal Entry

Go to Gateway of Tally > Inventory Vouchers

1. Select the button F7: Stk. Jrnl or press Alt + F7.

If you are creating a new voucher type Manufacturing Journal, a pop-up menu is
displayed with the options default Stock Journal and Manufacturing Journal.

Select Manufacturing Journal and the following screen will be displayed.

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Locations / Godowns

Locations/Godowns are places where Stock Items are stored. You can monitor the
location-wise movement of stock by creating multiple Godowns.

Tally.ERP 9 has a default Godown named Main Location. You can alter Tally's default
godown and create a new one. Tally.ERP 9 permits the creation of any number of
godowns, under groups and subgroups to match the structure you need.

Go to Gateway of Tally > Inventory Info. > Locations/Godowns

Creating a Location/Godown

You can create Locations/Godowns in Single mode and Multiple mode

Creating a Single Location/Godown

Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Create (under
Single Godown)

The Location/Godown Creation screen is displayed as shown:

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A brief explanation of each field in the Location/Godown Creation screen is given
below:

Name

Specify the name of the Location/Godown.

Alias

Enter an alias name for the Location/Godown name, if required.

Under

Specify the Location/Godown under which the Location/Godown is to be categorised.

Use Alt + C to create the parent Location/Godown if it is not in the list. Select
Primary, if it is not a sub Location/Godown of any Location/Godown.

Creating a Single Location/Godown Advance Mode:

Advance Mode indicates enabling certain options in Inventory master configuration

screen in order to add or remove field which require in Godown Master.

In the Godown Master Screen, press F12, Master configuration screen is displayed
as shown.

1. Allow Advanced Entries in Masters enables the Allow Storage of Materials

option in Godown Master.

2. Use Addresses for Godowns enables the Address field in Godown Master.

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The Location/Godown Creation in Advance Mode screen is displayed as shown.

A brief description of each additional field in Godown Creation screen is given below.

Address

This field is a Multi-Line Field. You can enter the Address for Godown.

Allow Storage of Materials

This option is used for deciding whether storage of material is allowed in this Godown
or not.

The Godown for which the Allow Storage of Materials is selected as No, will not
appear in the Godowns list, during Voucher entry.

Example:

Godown A is under Chennai Location. Here, Chennai is a Location and Godown A is a

place where material is stored.

For Chennai, Allow Storage of Materials is set to No, since this will not store the
material. During Entry, Chennai will not get listed in the List of Godown.

For Godown A, Allow Storage of Material is set to Yes, since this will store the
material. During Entry, Godown A will get listed in the List of Godown.

Predefined Inventory Vouchers in Tally.ERP 9

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Tally.ERP 9 comprises of the following predefined Vouchers, to suit different business
requirements for recording various transactions. Tally also allows you to create user-
defined Vouchers (Voucher Types) as per your requirements.

Purchase order

Sales order

Receipt note

Delivery note

Rejections Out

Rejections In

Stock Journal

Manufacturing Journal

Physical Stock

Receipt Note Voucher (GRN)

This voucher type is used for recording goods received.

To view the Receipt Note Voucher,

1. Go to Gateway of Tally > Inventory Vouchers

2. Press the button Alt+F9 or Select the button F9: Rcpt Note from the button bar.

Under F12: Configure (Receipt Note Configuration) set the option Accept
Supplementary Details to Yes.

For example, consider the situation where a company receives Item A

from a supplier B, if a Purchase Order exists for that Supplier B, select
the Order Number from the List of Orders pop up menu to bring up
the order particulars automatically.

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Once you accept the Order details, the cursor will move to the column Name of Item.
On pressing Enter, the Item Allocations screen is displayed.

You can select existing Tracking number or create a new Tracking Number. Tracking
number is the reference to have a link between transactions. For eg: if Tracking
Number is selected in the Receipt Note, the details of the items are automatically
displayed in the Purchase Invoice.

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The Receipt Note after completion will appear as shown :

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Partys A/c Name

Select the Party Ledger from the List of Ledger Accounts from whom the goods have
been received.

Name of Item

Once you select the Order Number from the List of Orders, the item name will be
displayed automatically.

Quantity, Rate and Amount

Since the Order number is selected from the List of Orders, quantities, rate and amount
will be displayed automatically.

Rejections In Voucher (Sales Returns)

A Rejections In Voucher is used to record goods that are rejected and returned by the
customer.

To view the Rejections In Voucher

1. Go to Gateway of Tally > Inventory Vouchers

2. Press the Ctrl+F6 or select the button F6: Rej. In from the Button Bar

Delivery Note Voucher

The Delivery Note Voucher is used for recording goods delivered to a customer.

To pass the Delivery Note voucher,

Go to Gateway of Tally > Inventory Vouchers

1. Press Alt+F8 or select the button F8: Dely Note from the button bar.

Under F12: Configure (Delivery Note Configuration) set Accept Supplementary

Details to Yes.

Rejections Out Voucher (Purchase Returns)

The Rejections Out Voucher records goods that are rejected and returned to a supplier.

To view Rejections Out Voucher:

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Go to Gateway of Tally > Inventory Vouchers

1. Press Alt+F6 or Select the button F6: Rej. Out from the Button Bar

Stock Journal Voucher

Stock Journal is a Journal in which all types of Stock Adjustments are entered.
The stock adjustment may be due to:
Inter-Godown Transfer
This is useful to transfer the goods from one location to another. The quantity of Stock
remains the same, but the Location changes.
Additional Cost/Expenses involved in the Transfer of goods.
You can also account the additional cost incurred in connection of transfer of materials
from one location to another.
Accounting for Wastage of stock or shortage of stock
There may be a shortage or wastage of stock items, the quantity may have got changes.
In such cases, you have to enter a stock journal to account for the increase or decrease
in the Stock Item.
Manufacturing Process
If you are involved in the manufacturing process in which raw materials are consumed
and finished goods are produced, then you can create a manufacturing Journal Voucher
also.
To view the Stock Journal Voucher:
Go to Gateway of Tally > Inventory Vouchers
1. Press the buttons Alt + F7 or Select the button F7: Stk Jrnl from the Button Bar
For example, the company transfers Item B from the warehouse to the shop.
Note: To get the Godown details enable the feature Maintain Multiple Godowns in
F11: Features: F2: Inventory Features.

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Date

Enter the Date of Stock Journal entry.

Ref

Enter the reference number, if any, or leave it blank.

Note: To get the reference column in the Stock Journal, in F12: Configuration screen
set Yes to Use Ref. Number in Stock Journal.

Following are the two parts of a Stock Journal voucher:

Source (Consumption)

Name of Item

Select the name of the Item from the List of Items, which needs to be transferred
under Source.

Godown

Select the Godown from the List of Godowns, from which goods are getting
transferred.
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Quantity, Rate and Amount

Enter the quantity of the items that is getting transferred and rate, amount will popup
automatically.

Destination (Production)

Name of Item

Select the name of the Item from the List of Items under the column Destination.

Godown

Select the Godown from the List of Godowns, to which goods are being transferred.

Quantity, Rate and Amount

Enter the quantity of the items that is being transferred. The rate and amount will be
displayed automatically.

Note: You can have a different Rate for Source (Consumption) and for Destination
(Production) column for the same Stock Item.

Manufacturing Journal Voucher

Go to Gateway of Tally > Inventory Vouchers > Alt +F7 > select Manufacturing
Journal

For more information on creating Manufacturing Voucher refer Creating Manufacturing

Journal.

Name of Product

Select the product which needs to be manufactured from the List of Items,

Godown

Select the godown where you would like to place the produced goods.

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Quantity

Enter the quantity to be produced.

Components (Consumption)

The list of Sub-Component items which will be used to produce the finished goods,
need to be selected here.

1. Select the name of the item under Name of Item.

2. Select the Godown from the List of Godowns.

3. Enter the quantity.

4. Enter the Rate and Amount will be calculated automatically.

Type of Addl Cost

Enter the additional cost incurred for manufacturing the finished goods, if any.

Total Addl.Cost

The total of all additional cost will be displayed here.

Effective Cost

The Effective cost is total of Components (Consumption) + Additional Cost

In the above example: 216333+2000 =218333

Effective Rate

This is the rate of the finished item.

In the above example: 218333 / 10 (number of computer produced) = 21833.

Transfer Journal Voucher

To create Stock Journal for Inter-Godown Transfers,

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Go to Gateway of Tally >Inventory vouchers >Alt+F7 for Stock Journal and select
the class.

Pass the stock transfer entry.

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Physical Stock Voucher

Physical Stock Voucher is used for recording the actual stock which is verified or
counted. It could happen that the Book Stocks and the Physical Stock do not match. It
is not unusual that the company finds a discrepancy between actual stock and computer
stock figure.

Physical vouchers will be useful for recording purposes only if you have configured
inventory vouchers to ignore physical stock differences. If you have configured the
vouchers so that physical stock difference is not ignored, then all transactions
subsequent to the physical stock voucher will use the balance as mentioned in that
voucher

To view the Physical Stock Voucher,

Go to Gateway of Tally > Inventory Vouchers

1. Select the button F10: Phys Stk from Button Bar or press Alt+F10.

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Date

Enter the stock taking date.

Name of Item

Select the name of the item from the List of items, for which physical stocks need to be
recorded.

Godowns

Select the Godown (Godown will appear only if, Maintain multiple Godowns is
activated in F11:Features :F2:Inventory Features), in which the Physical Stock
taking was conducted.

Batch / Lot No

Select the Batch number (Batch details will appear only if, Batch wise details are
activated in the Stock Item Master screen) for which the Physical Stock quantity is to
be recorded.

Quantity

Enter the Physical Stock quantity

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Note: Physical Stock quantity will be displayed as Actual Stock in the Stock
Summary from the date of entry of the Physical Stock.

Purchase Order Processing

When the order is placed with the suppliers for the supply of goods, the Items,
quantities, date of receipt etc., details are given with the Purchase Order Number. Later,
when these goods are received, the Purchase Order is tracked for the Order Details
either in the receipt note or in the purchase Invoice.

The Outstanding Purchase Order reports are available in Tally.ERP 9. It is possible to

know the order position of any item in the Stock Summary. Separate Purchase Order
Outstanding report and Purchase Order Summary report are also available.

Creating a Purchase Order

To create a Purchase Order,

Go to Gateway of Tally > Inventory Vouchers > press Alt + F4 or click on Purc
Order

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Party's A/c Name

Select the Suppliers name from the List of Ledger Accounts. Use Alt + C to create a
new account.

Order No

Enter the purchase order number under Order No column

Name of the Item

Select the Stock Item that needs to be purchased from the List of Stock Items. The
Item Allocations sub-screen is displayed. Enter the details as shown.

Due on

Enter the due date for receipt of the items. This monitors outstanding receipts.

If orders are split for different dates, then specify the due date for the first lot to be
received, after selecting the quantity, rate and amount; specify the due date for the
second lot and so on. After specifying the due dates for all the lots, press Enter in the
Due on field to return to the Voucher Creation screen.

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Quantity, Rate and Amount

Enter the quantity of the item required and its rate. The amount will be calculated
automatically. Accept to save.

Narration

This field is optional. Enter the required particulars concerning the order.

Sales Order Processing

When the order is received from a customer for goods to be supplied, the Items,
quantities, date of delivery, etc., details are given with Sales Order Number. Later when
these goods are delivered, this Sales Order is tracked for the order Details either in the
delivery note or in the sales invoice.

The Outstanding Sales Order reports are available in Tally.ERP 9. It is possible to know
the order position of any item in the Stock Summary. Separate Sales Order Outstanding
report and Sales Order Summary report are also available.

Sales order entry is exactly like the Purchase Order Entry.

To create a Sales Order

Go to Gateway of Tally > Inventory Vouchers > press Alt + F5 or click on Sales
Order

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Party's A/c Name

Select the Customers name from the List of Ledger Accounts. Press Alt + C to create a
new account.

Order No

The Order number is automatically displayed. By default it will take the Voucher
number as Order No. You can change this number if required.

You can also configure the voucher type for Sales Order, to get the Suffix and Prefix for
the sales orders. (Go to Gateway of Tally > Accounts Info / Inventory Info > Voucher
Types > Alter > Sales order > Set Yes to Use Advance Configuration).

For more details on Advance Configuration refer to Use Advance Configuration

Name of the Item

Select the Item for which the order is to be placed from the List of Stock Items. The
Item Allocations sub-screen is displayed as shown.

Enter the details as shown.

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Due on

Enter the due date for the Delivery of the items. This monitors outstanding Delivery of
the items.

If orders are split for different dates, then specify the due date for the first lot to be
received. After selecting the quantity, rate and amount; specify the due date for the
second lot and so on. After specifying the due dates for all the lots, press Enter in the
Due on field to return to the Voucher Creation screen.

Quantity, Rate and Amount

Enter the quantity of the item and its rate. The amount will be calculated automatically.

Narration

This field is optional. You can give some particulars about the order.

Advanced Inventory Features in Tally.ERP 9

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Reorder levels and Reorder Quantity

Reorder Level signifies the quantity of a Stock Item in hand, after reaching which you
must place orders for your supplies. The importance of Reorder Level arises from the
need to have sufficient stocks to service customer orders and, at the same time, not to
unnecessarily accumulate stock.

Therefore, the points to be considered while deciding the reorder levels are as follows.

The lead-time for suppliers to deliver the stock.

The delivery time specified by the customer.

The stock-in-hand to satisfy orders in the meantime.

In simple mode, Tally.ERP 9 accepts the quantities that you specify. In advanced mode,
it considers the past consumption patterns to suggest reorder levels. You can however,
choose to define your own reorder levels. You may also specify the minimum quantity
of the item to be ordered, either in simple or advanced mode.

The purpose of specifying reorder levels is to obtain a report that indicates the quantity
of a Stock Item that you must order.

Note: The option Reorder Levels is displayed in the Inventory Info. menu only if
Allow Purchase Order Processing is enabled in F11: Inventory Features

Specifying Advanced Reorder Levels and Minimum Quantities

To specify advanced Reorder Levels,

Go to Gateway of Tally > Inventory Info. > Reorder Levels

When you select the Stock Group under the Reorder Levels menu, the Simple
Reorder Levels screen will be available, by default. To view Advanced Reorder
Levels screen, press Alt+R or click on R: Adv Reorder from the Button Bar.

The Advanced Reorder Levels screen appears as follows:

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In the same way, press Alt+M to view Advanced Minimum Order Quantity screen,
or click on M: Adv Min Qty.

The Reorder Levels screen with advanced parameters will appear as shown:

The above configuration helps in calculation of Reorder Level/Order quantity based on

the total consumption in the past for a given period.

Advanced Parameters in Advanced Reorder Levels

Period

You can select consumption for various periods viz., Days, Weeks, Months & Years.
Here, in this case, it not the average consumption for a period but the total
consumption. Enter 0 (Zero), if you do not wish to calculate the reorder level based on
the consumption in the past.

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Criteria

You can choose, whether the consumption is higher or lower i.e., input /calculated
level/quantity.

Advanced Parameters for Minimum Order

Minimum Order quantity

Specify the minimum order quantity required.

Period

You can select consumption for various periods viz., Days, Weeks, Months & Years.
Here, in this case, it not the average consumption for a period but the total
consumption. Enter 0 (Zero), if you do not wish to calculate the reorder level based on
the consumption in the past.

Criteria

You can choose, whether the consumption is higher or lower i.e., input /calculated
level/quantity.

The options available in the Advanced Reorder Levels screen are as follows:

R : Simple Reorder

Press Alt+R to toggle to Simple Reorder Levels screen.

M : Simple Min Qty

Press Alt+M to toggle to Simple Minimum Order Quantity screen

Price Levels

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In Tally.ERP 9, you can create different Price Levels and assign different Price Lists to
these Price Levels. For example, you can create Wholesaler, Distributor and Customer
as Price Levels and assign applicable Price Lists to these Price levels, as per your
requirements, so that only the relevant prices and discount rates are used during entry of
orders and invoices. Before you start creating Price Lists, you may decide to create
Price Levels as required.

Creating Price Levels

Ensure that whether the Company is enabled for Accounts with Inventory in the
Company Master screen.

To enable Price Levels, Set the following fields to Yes in F11: Features > F2:
Inventory Features screen.

1. Allow Invoicing (If you do not set this option to Yes, the options for Price
Lists will not be available.)

2. Set Use Multiple Price Levels to Yes.

3. Type the name of the price levels to be created, in the Company Price Levels
screen.

4. Press Ctrl + A to accept the screen and return to the F11: Inventory Features
screen. Set the other options as required and accept Yes to save.

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Price Lists

Price Lists are useful for orders and invoices. An up-to-date price list helps in decision-
making even at the lower levels of the organization and quickens the sales process.
Tally.ERP 9 assists in creating quantity based pricing with complex discount structure.
Price Lists are available only for inventory items and hence the feature is available only
if inventory and invoicing are activated for the company.
You can have one or more price lists. You may require more than one price list, when
you have different price structures/levels for different purposes viz., different groups of
customers requiring different discounts or dealing in different products.

Creating a Price List

Once you have created Price Levels, the Price List option appears in the Inventory
Info. menu

Go to Gateway of Tally > Inventory Info. > Price List

Select a group from the List of Groups.

If you want to create a Price List consisting of all stock Items falling under
different Stock Groups, select All Items in the Under Group field

Select the Price Levels from the list

Type the applicable rates for the stock items for the selected Price Levels

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 Accept to save

Under Group

This is the stock group of the Stock Item, for which you want to define the Price Lists.

Price Level

This is the Price Level under which the Price List needs to be created

Applicable From

Specify the date from when the Price List will be applicable.

The columns you see are as follows.

Sl. No

This column is auto-generated serial numbers to track the number of items in the Price
List.

Name of Item

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This column contains the Name of the Stock Items under the selected Stock group. You
can define the Price List for each item.

Quantities - From & Less Than

These fields are repeated for an item and begin with a blank for 0 items and end with a
blank for any number of items (i.e., upto 50 Nos you can have a certain pricing if
someone buys more than 50Nos you can specify a different rate). This is useful for
quantity based pricing and discounts. You can create a staggered quantity price
structure, if required.

If you do not require quantity based pricing, leave From and Less Than fields blank.

Rate & Discount (if any)

Under this column, you can specify Rate and discount for each Quantity band or you
may also choose to maintain the same price for all bands, but define different discounts.

Historical Details (Rate and Disc%)

This column displays the last Price List specified for such Stock Group.

Cost Price

This Column displays the cost price (based on the Costing Method set in the Stock Item
Master) of the item to help fixing of prices.

Configuration in Price Lists Screen

F4: New Parent

Select this option to change the Stock Group in the Under Group field.

Print/Export/Email/Upload Price Lists

Select the relevant buttons while the price list is displayed for it to be printed / sent by
e-mail or published.

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Assigning Price Levels to Ledger Accounts

Once the Price Levels are created in Tally.ERP 9, a new option appears in Ledgers
grouped under Sundry Debtors and Sundry Creditors, with the help of which you can
assign a specific Price Level to the ledger account.

Go to Gateway of Tally > Accounting Info > Ledgers > Create

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. Select Not
Applicable, if you do not want to assign any Price Levels to the Ledger.

If you want to assign Price Levels to ledgers created earlier, alter the ledger account, tab
down to Pricing Level Applicable field and select the applicable price level from the
list.

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Using Price Levels during Invoicing (Voucher Entry)

The price levels created and assigned to Ledger Accounts automates Stock Item Prices
and helps minimizing errors during Invoicing.

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. Select As Invoice.

3. Accept to save

During Invoicing, there is an additional field Price Level enabled once Price Levels
feature is activated and is prefilled with the Price Level which are specified for the
selected Party ledger and the cursor skips this field.

You may change the Price Level during Invoicing by pressing F12: Configure and
setting Yes to Allow modification of ALL fields during entry.

Go to Gateway of Tally > F12: Configure > Invoice/Orders Entry

Set Allow modification of ALL fields during entry to No to prevent changes made to
prices. If you set it to Yes, you can override the prices already defined.

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Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. Select As Invoice.

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Point of Sale (POS) in Tally.ERP 9
POS is an acronym for Point of Sale. Point of Sale could mean a retail shop, a check-
out counter in a shop or any other location, where a sales transaction takes place. The
various POS equipment used in retail outlets are Cash registers, card readers and
barcode scanners.
It is a computerized Cash Register which adds the sales total, computes the State sales
tax or VAT, calculates the change from the money tendered and automatically adjusts
the stores inventory to debit the amount of inventory sold.

Creating POS Voucher Type with Voucher Class

To create a POS Invoice Voucher Type with Voucher Class, you may create a new POS
Invoice Voucher Type or alter an existing Sales Voucher Type with Use for POS
Invoicing option set to Yes.
To create POS Voucher Type with Voucher Class,
Go to Gateway of Tally > Accounts Info > Voucher Type > Create
Tab down to Name of Class field and specify the name of the Voucher Class

The payments against POS Invoices are generally made by way of Cash, Gift Vouchers,
Cheques/Drafts or through Credit/Debit Cards. To account for receipt of payments
from customers by different modes, set the required option to Yes and select the
required ledger in the respective fields.

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 1. Set Yes in Gift Vouchers field to enable the option during POS Invoice Entry
and select the Gift Vouchers under Ledger Name field (if does not exist, create
using Alt+C. The Gift Vouchers ledger should be created under Sundry Debtors
group).
2. Set Yes in Credit/Debit Card Payment field to enable the option during POS
Invoice Entry and select the required Bank Ledger under Ledger Name field
3. Set Yes in Cheque/DD field to enable the option during POS Invoice Entry and
select the required Bank Ledger under Ledger Name field
4. Set Yes in Cash field to enable the option during POS Invoice Entry and select
the required Cash Account under Ledger Name field
Note:
For Gift Vouchers, the ledgers should be created under Sundry Debtors Group
For Credit/Debit Cards, the respective Bank Ledger should be created under Bank
account or Bank OD/OCC
For Payment through Cheque/DD, the respective Bank Ledger should be created
under the group Bank Accounts or Bank OD/OCC
For Cash, the Ledger should be under group Cash-in-Hand

Creating a POS Invoice

To enter a simple transaction using a POS Invoice with single payment mode:
39
Go to Gateway of Tally > Accounting Vouchers > Select F8: Sales
1. Select the POS Invoice as the Voucher type from the list of Voucher types.
2. Select the Godown, Sales Ledger and VAT/Tax Class as applicable.
3. Select the Item using the Bar code reader to scan the bar code or select the Item
from the list.
4. The Rates of the Item is picked up from Set Standard Rates screen (Stock Item
Creation screen) or from the Price List screen.
5. Select VAT/Tax Ledger from the list of Ledger Accounts.
6. By default for the first time, the POS Invoice screen will appear in Single Mode
Payment.
The screen will appear as below with the Cash and Cash tendered fields:

7. Accept to save.
Configurations in POS Invoice:

40
1. Allow Party Details in POS Invoice: By setting this option to Yes, you are able to
select the Customers Ledger. If you do not want to create a separate Ledger for
the Buyer and still would like to print the customers name in the Invoice print,
select Not Applicable from the List of Ledger Accounts and specify the Buyers
name and address details in the Buyers details.
2. Skip Qty field during POS Invoicing (faster entry): By default, the same will be
set to Yes so that while passing the Invoice, the cursor will skip the Quantity
field. The user may set this option to No, to specify the required number of
quantity.
3. Allow modification of Rate field during POS Invoicing: The rates are
automatically picked as per the Standard rates defined in the Stock Item master or
from the Price List. However, you can change the rate during entry, by setting
this option to Yes.

41
 Payroll

The term Payroll refers to a series of accounting transactions involved in the process of
paying employees for the services rendered after taking all the statutory and non-
statutory deductions into account, in conformance with the terms of employment,
company policy and the law of the land i.e., payment of payroll taxes, insurance
premiums, employee benefits and other deductions.
An efficient payroll system facilitates an error-free, accurate and timely employee
payment while ensuring that the employment is well within the valid work permit.

Enabling Payroll in Tally.ERP 9

Go to Gateway of Tally > Press F11: Company Features > press F1: Accounting
Features
In the F11: Accounting Features screen:
Set Maintain Payroll to Yes
Set More than ONE Payroll / Cost Category to Yes
The completed F11: Accounting Features screen is displayed as shown:

Press Enter to Accept the F11: Accounting Features screen

Once the Payroll feature is activated in Tally.ERP 9, the following two new options get
activated in the F11: Statutory & Taxation Master

Enable Payroll Statutory Features

42
Go to Gateway of Tally > press F11: Company Features > press F3: Statutory &
Taxation In F11: Statutory & Taxation Features screen:
Set Enable Payroll Statutory to Yes
Set Set/Alter Payroll Statutory Details to Yes

Press Enter
In the Payroll Statutory Details screen, Enter the Provident Fund & Employee State
Insurance details of the company as shown:

Press Enter to Accept the screen and go back to F11: Statutory & Taxation Features
screen

Creating Payroll Masters

Tally.ERP 9's Payroll features require minimal effort for accurate payroll processing. It
takes five easy steps to process payroll & generate Payslip in Tally.ERP 9.
43
Essentially, Payroll involves the calculation of amounts due for an employee on the
following basis.
The following Payroll masters are required to be created in Tally.ERP 9 in the manner
as discussed:
Employee Masters
Payroll Masters
Pay Heads
Salary Details

Employee Setup
Payroll Cycle
The Employee Master records employee information department, date of joining, date
of leaving, ID number, designation, location, function, employee bank details, statutory
details, Passport and Visa details and so on.
Employee Group Master
Businesses with multiple departments, divisions, functions or activities may create the
required employee groups and classify individual employees under a specified group
i.e., Production,
Sales, Marketing, Stores, Support or a particular group of employees such as managers,
supervisors, sub-staff and so on.

To create Sales as an Employee Group:

Go to Gateway of Tally > Payroll Info. > Employee Groups > Create
44
In the Employee Group Creation screen,
1. Select Primary Cost Category as the Category
2. Type Sales as the Name of the Employee Group
3. Select the group as Primary
The Employee Group Creation screen is displayed as shown:

4. Press Enter to Accept the Employee Group Creation screen

Similarly, create the other Employee Groups such as Administration and R&D.

Employee Master
Now that you have created the Employee Groups, create individual Employee Masters,
with or without grouping them, under the Employee Group Master. In Tally.ERP 9, you
can record all the necessary information of the employees in the Employee Masters.
Tally.ERP 9 also allows you to enter the Statutory, Expat and Contract details of the
employees.
To display the options for entering the Statutory, Expat and Contract details, enable
these options from the Company Configuration screen as explained below:
Go to Gateway of Tally > F12:Configure > Payroll Configuration
Set the following options:
Show Statutory Details to Yes
Show Passport & Visa Details to Yes
Show Contact Details to Yes
The F12: Payroll Configuration screen is displayed as shown:

45
Press Enter to Accept
Create the following Employee Masters

Emplo
yee Name Department Date of Joining
Go to Gateway of Tally > Payroll Info. > Employees > Create
In the Employee Creation screen,
1. Select the Primary Cost Category as the Category
2. Type the Name of the Employee as Rohit Roy
3. Specify the Name of the Employee Group as Administration in the field Under
4. Specify the Date of Joining as 01-04-2009
5. Type the other details of the employee as shown.

6. Press Enter to Accept the screen

Similarly, create the Employee Masters for other employees with their respective
departments.
Payroll Masters
As discussed in the above section, Pay components are computed based on the Payroll
Units.
46
Therefore, create the following Payroll masters in Tally.ERP 9:
Payroll Units
The Date of Leaving and Reason for Leaving option will be available only
in the Alteration mode.
Attendance / Production Types

Payroll Units
A payroll unit refers to a unit of measurement based on which pay heads are calculated.
Payroll units can be classified into two types viz., Simple Payroll Units and Compound
Payroll Units. Simple Payroll Units refer to individual units such as Day, Week, Month,
Hours, Pcs, Box, Nos etc., Whereas, Compound Payroll Units refer to Units which are
combination of two simple units, i.e., an Hour of 60 Minutes, Month of 26 days, Day of
8 Hrs. Usually, the Pay components are computed based on a single or compound
payroll units. Sometimes an employee may be paid on the basis of a combination of two
or more units. For example, an employee is paid a regular salary and an hourly rate for
the overtime hours. In this case, the two likely units are Calendar Month and Hours.
In Tally.ERP, you can create simple as well as compound units.
By default, Tally.ERP 9 contains four preset Calculation Periods Days, Fortnights,
Months & Weeks. However, you can also create new Payroll Units based on your
business requirements.
Name Type Symbol

i. Simple Payroll Units

Go to Gateway of Tally > Payroll Info. > Units (Work) > Create
In the Unit Creation screen,
1. Simple is defaulted as the Type of Unit
2. Specify Hrs as the Symbol
3. Type Hours as the Formal Name
4. Specify 2 as the Number of Decimal Places
The completed Unit Creation screen is displayed as shown:

5. Press Enter to Accept the Unit Creation screen.

ii. Compound Payroll Units

Create Hrs of 60 Mins as a Compound Unit.
In the Unit Creation screen:
1. Press Backspace and select Compound as the Type of Unit
47
2. Specify Hrs as the First Unit
3. Enter 60 as the Conversion
4. Specify Mins as the Second Unit

5. Press Enter to Accept the Unit Creation screen.

Attendance/ Production Types

Attendance/Production Type masters are used to record the nature of attendance/
production i.e.time and work rate. In Tally.ERP 9, you can create Attendance types
based on time such as Present and Absent or based on work based production units
such as Piece productions, Sales performance and so on.

i. Present Attendance Type

Go to Gateway of Tally > Payroll Info. > Attendance / Production Types > Create
In the Attendance Type Creation screen,
1. Type Present as the Name of the Attendance type
2. Specify the group as Primary in the field Under. By defualt primary is selected.
3. Select Attendance/ Leave with Pay as the Attendance Type and the Period Type
appears as Days, by default.

The completed Attendance Type Creation screen is displayed as shown.:

48
4. Press Enter to Accept the Attendance Type Creation screen.

ii. Absent Attendance Type

Similarly, create another Attendance Type as Absent. Enter Leave without Pay in the
field

Press Enter to Accept the Attendance Type Creation screen.

In the same way, create Overtime as the Production Type with Production as the
Attendance Type.

iii. Calendar Month

In the Attendance Type Creation screen,
1. Type Calendar Month as the Name of the Attendance type
2. Specify the group as Primary in the Under field.
3. Select User Defined Calendar Type as the Attendance Type and the Period Type
appears as Days, by default.

49
iv. Overtime Production Type
The completed Overtime - Production Type Creation screen is displayed as shown
below:

Press Enter to Accept the Production Type Creation screen.

Pay Heads
Pay Heads may be broadly considered as Earnings and Deductions from an employees
point of view. However, these pay heads would still be Expense and Liability from the
employers view point.
Some examples of Earnings Pay Heads are Basic Salary, Dearness Allowance, City
Compensatory Allowance, House Rent Allowance, Night Shift Allowance, Uniform
Allowance, Sales Commission and so on.
Some examples of Deductions pay heads are Employees Provident Fund (EPF),
Employees State Insurance (ESI), Professional Tax, Income Tax, TDS, Advance (if
any).
In Tally.ERP 9, each pay head is to be created as an individual ledger account and
grouped under its respective group i.e., all Earnings pay heads under Indirect Expenses
group or Direct Expenses group and all Deductions pay heads under Current Liabilities,
Current Assets and Duties & Taxes group.

The preset Pay Head types in Tally.ERP 9 are:

1. Earnings for Employees
2. Deductions from Employees
3. Employees Statutory Deductions
4. Employers Statutory Contributions
5. Employers Other Charges
6. Bonus
7. Gratuity
8. Loans and Advances
9. Reimbursements to Employees

The pay heads marked with the above pay head types will be available during payroll
processing, and if the Pay Head Type is marked as Not Applicable, will not be

50
available. The Salary Payable, PF Payable, ESI Payable ledgers are required to be
created, by selecting Not Applicable as Pay Head Type.

I. Earning Pay Heads

i. Basic Pay Head Creation

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
In the Pay Heads Creation screen,
1. Type Basic Pay as the Name of the Pay Head
2. Select Earnings for Employees in the field Pay Head Type.
3. Specify the group as Indirect Expenses in the field Under and press Enter
4. Set Affect Net Salary to Yes
5. Specify Basic in the field Name to appear in Payslip
6. Set Use for Gratuity to Yes
7. Select On Attendance in the field Calculation Type and press Enter
8. Select Present in the field Attendance/ Leave with Pay.
9. Select Months in Calculation period field and press Enter
10. Select User defined in the Per Day Calculation Basis field
11.Press Enter to Accept
12. Specify the Months of 26 Days and press Enter
13.Select Normal Rounding as the Rounding Method and press Enter.
14.Specify 1 as the rounding Limit (The Rounding limit allows the value to be in
multiples of the limit specified and is based on the Rounding Method selected)

The completed Basic Pay Head Creation screen is displayed as shown.

15.Press Enter to Accept the screen.

51
ii. House Rent Allowance Pay Head Creation
In the Pay Head Creation screen,
1. Type House Rent Allowance as the Name of the Pay Head
2. Select Earnings for Employees in the field Pay Head Type
3. Specify the group as Indirect Expenses in the field Under and then press Enter
4. Set Affect Net Salary to Yes
5. Specify House Rent Allowance as the Name to appear in Payslip
6. Set Use for Gratuity to No
7. Select As Computed Value in the Calculation Type field and press Enter
8. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and
press Enter
9. In the Computation Info screen, select On Specified Formula in the Compute
field.
10. Press Enter and the Compute subscreen is displayed
11. In the Sub-screen Compute:
Select Basic Pay as the Add Pay Head function and press Enter
12. Specify 1-4-2009 as the Effective From date (In case of a revision in pay structure,
you can define the revised computation information for the given pay head, by giving
the effective from date)

52
13. The From Amount column is automatically skipped, assuming it to be zero. Press
Enter to skip the Amount Upto column
14. Select Percentage as the Slab Type from the List of Slabs
15. Specify 40% in the Value Basis field and press Enter

The completed House Rent Allowance (HRA) Pay Head Creation screen is displayed
as shown.

16.Press Enter to Accept the screen

53
iii. Conveyance Pay Head Creation
Create the Conveyance Pay Head with Calculation Type as Flat Rate.
The completed Conveyance Pay Head Creation screen is displayed as shown.

Press Enter to Accept the screen

54
iv. Overtime Pay Head Creation
Create the Overtime Pay Head with Calculation Type as Production.
The completed Overtime Pay Head Creation screen is displayed as shown.

Press Enter to Accept the screen

55
v. Variable Pay Head Creation
Similarly, create the Variable Pay Head with Calculation Type as User Defined
Value.

56
II. Deduction Pay Heads

i. Employees PF Contribution @ 12% Pay Head Creation

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
In the Pay Head Creation screen,
1. Type Employees PF Contribution @ 12% as the Name of the Pay Head
2. Select Employees Statutory Deductions in the field Pay Head Type and press
Enter
3. Select PF Account (A/c No. 1) in the Statutory Pay Type field as shown
4. Specify the group as Current Liabilities in the field Under and press Enter (In
Tally.ERP 9,
only relevant groups appear during selection, to reduce erroneous data inputs)
5. Set Affect Net Salary to Yes
6. Specify EPF @ 12% in the field Name to appear in Payslip
7. As Computed Value appears in the field Calculation Type by default
8. Select Normal Rounding as the Rounding Method. Specify 1 as the rounding
Limit and press Enter
9. Select On Specified Formula as the Compute method and press Enter
10. In the Compute sub-screen, select Basic Pay as the Add Pay Head function and
press Enter
11. Press Enter to Accept the screen
12.Specify 1-4-2009 as the Effective From date
13.The From Amount column is automatically skipped, assuming the amount to be
zero
14.Specify 6500 in the Amount Upto column and press Enter
15.Select Percentage as the Slab Type from the List of Slabs
16.Specify 12% as the Value Basis Percentage and press Enter (the From Amount is
defaulted
as 6500)
17.Press Enter to accept the upper level as 0 and select Value as the Slab Type from
the List of Slabs
18.Specify Rs. 780 in the Value Basis field and then press Enter
19.Press Enter twice
The completed Employees PF Contribution @ 12% Pay Head Creation screen is
displayed as shown:

57
20.Press Enter to Accept the screen

ii. Employees ESI Contribution @ 1.75% Pay Head Creation

Create Employees State Insurance (ESI) Pay Head as discussed.
In the Pay Head Creation screen,
1. Type Employees ESI Contribution @ 1.75% as the Name of the Pay Head
2. Select Employees Statutory Deductions in the field Pay Head Type
3. Select ESI in the field Statutory Pay Type
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to Yes
6. Specify ESI @ 1.75% in the field Name to appear in Payslip
7. As Computed Value appears by default in the field Calculation Type
8. Select the option Normal Rounding as the Rounding Method. Specify 1 as the
rounding Limit and press Enter
9. Select On Specified Formula in the field Compute and press Enter
10.In the Compute On Sub-screen, subscreen,
Select Basic Pay as the Add Pay Head function and press Enter
Select House Rent Allowance as the second Pay Head in the Add Pay Head
Function
Similarly, select Conveyance and Overtime Pay as the Add Pay Head function
58
 Select End of List and press Enter
11.Speci f y 1-4-2009 as the Effective From date
12.The From Amount and Amount Upto fields are skiped as the amount is already
entered in the Statutory & Taxation screen
13.Select Percentage as the Slab Type from the List of Slabs
14.Specify 1.75% as the Value Basis Percentage and press Enter

The completed ESI Employees Contribution Pay Head Creation screen is

displayed as shown:

15.Press Enter to Accept the screen.

59
iii. Professional Tax Pay Head Creation
Create Professional Tax Pay Head ledger with the required Slab rates.
The completed Professional Tax Pay Head Creation screen is displayed as shown:

Press Enter to Accept

Gratuity
Apart from the above Pay Heads, create Gratuity Expenses (Provisional) Account in
order to get provisional Gratuity liability report for the employer at any given period.
Gratuity refers to the monetary benefit given by the employer to the employee at the
end of the employment for the services rendered over a period of employment either by
law or otherwise. It is calculated provisionally at the end of each financial period to
assess the possible liability of the company towards its employees. A Gratuity
Provisional Account is created to capture the details required for the calculation of
gratuity. Gratuity is calculated based on select salary components.
The formula used for Gratuity calculation is as follows.

60
Gratuity Pay Head Creation
In the Pay Head Creation screen,
1. Type Gratuity Expenses (Provisional) as the Name of the Pay Head
2. Select Gratuity in the field Pay Head Type. The Slab Rate details for Gratuity
Calculation screen are displayed.
3. In the Gratuity Calculation subscreen, specify the following details:
Specify Gratuity Days of a Month as 26
Enter 1 and 60 (months) in the From and To fields under the Number of Months
column
Specify 0 in the field Eligibility days for Gratuity Calculation per year
Similarly, select 61 and 120 in the From and To fields
Specify 15 in the Eligibility days for Gratuity Calculation per year field
Press Enter to accept 121 in the field From
Specify 15 in the field Eligibility days for Gratuity Calculation per year

The Slab Rate Details for Gratuity calculation screen is displayed as shown.

61
4. Press Enter to Accept the screen
5. Specify the group as Provisions (Current Liabilities) in the field Under and press
Enter
The completed Gratuity Expenses (Provisional) Pay Head Creation screen is
displayed as shown.

62
6. Press Enter to Accept the screen.

Salary Details Setup

The Salary Details masters contain information on the Employee Group/ individual
employee pay structure, comprising both earnings and deductions pay components for
the applicable period. Businesses having a common pay structure for a particular
department or division or set of employees can define salary details for an employee
group and classify individual employees under the specified group to inherit the parent
pay values. The Employee Group master prefills the parent group values to the
individual employee masters created under them. It reduces the possibility of erroneous
data entry and expedites data entry. This categorisation also helps in generation
of Group-wise reporting.
Pay structure constituting the Pay Heads and basis of calculation should be similar for
the employees falling under the same group, but pay values need not be same.
Tally.ERP 9 also allows you to set up individual employee salary details with all
parameters applicable

To define Salary Details for employees,

Go to Gateway of Tally > Payroll Info. > Salary Details > Create

63
1. Select Rohit Roy from the List of Employees and press Enter
In the Salary Details screen,
The Effective date is entered as 01-04-2009 by default based on the Date of
Joining
entered in the Employee Master
Select Basic Pay as the Pay Head from the List of Pay Heads
Specify 7,000 as Rate
The Attendance units, Pay Head Type and Calculation Type appear by default,
based on the pay head definitions.
2. Select House Rent Allowance as the second Pay Head and press Enter
3. Select Conveyance as the next Pay Head
4. Specify 500 as Rate and press Enter
5. Select Overtime Pay as the Pay Head
6. Specify 40 as the Rate and press Enter
7. Select Variable Pay as the Pay Head and press Enter
8. Select Professional Tax against the Pay Head and press Enter
9. Select Employees PF Contribution @ 12% and Employees ESI Contribution @
1.75% as Pay Heads and press Enter
10.Select the Gratuity Expenses (Provisional) ledger and press Enter
The completed Salary Details Creation screen for Mr. Rohit Roy is displayed as
shown:

64
Processing Payroll in Tally.ERP 9
Typically, Payroll Processing comprises of the following activities :
Recording of Attendance (on time / work)
Processing Payroll Vouchers
Payment of Salaries
There are three types of Payroll Vouchers namely Attendance Voucher, Payroll Voucher
and Payment Voucher, which are by default preset in Tally.ERP 9 to record above
Payroll transactions.

Attendance Vouchers

An Attendance Voucher is used to record employees attendance data, based on

Attendance/ Production types (i.e., present or absent days, overtime hours and so on).
An Attendance Voucher allows you to record the attendance/ production units for
employees.
Tally.ERP 9 gives you the flexibility to enter the attendance records through a single
attendance voucher for a payroll period, or through multiple attendance vouchers as and
when required within a payroll period. You also have the option of recording one
attendance/ production voucher per employee per day or collectively for a month or any
other variation thereof for all the employees.
In Tally.ERP 9, the auto-fill facility (Alt+A) is used to prefill the required
Attendance/Production types data for the selected employee group/ employee for the
specified period.
65
Present days and Overtime hours.
Go to Gateway of Tally > Payroll Vouchers
1. Press Ctrl+F5 for Attendance Voucher
The Attendance Voucher Creation screen is displayed as shown:

2. Press F2 and specify the date as 30-4-2009

3. Press Enter
4. Press Alt+A (Attendance Auto Fill) to prefill employee payroll details
The Attendance Auto Fill screen is displayed as shown:

66
5. In the Attendance Auto Fill screen,
Specify the Voucher Date as 30-04-2009
Select Primary Cost Category as Cost Category (If separate cost categories are
used to capture employee cost, then select the respective cost category)
Select All Items as Employee/ Group (if you want to generate payroll voucher
for individual employee/group, select the respective employee or group)

The Attendance Auto Fill with Employee Filters screen is displayed as shown:

67
 Select Present as Attendance Type in the Attendance/ Production Type field

Specify the Default Value to Fill as 0

Press Enter to accept the screen
6. Employees pertaining to the respective Employee Groups are displayed
automatically
7. Specify the attendance details as given in the table above
68
8. Press Enter
9. Enter the details of the transaction in the Narration field
The completed Attendance Voucher Creation for Present Attendance is displayed as
shown:

10.Press Enter to accept the completed Attendance Voucher screen

Payroll Vouchers
A payroll voucher is used to record all employee-related transactions. It enables you to
compute all the values for the respective Pay Heads (Earnings and Deductions).

In Tally.ERP 9, the disbursement of salaries can be effected in any of the following

modes.
Direct Remittance in cash or by cheque
Bank Transfer a direct transfer is made to an employees bank account and the
list of
disbursement is printed separately.

69
I. Cash (or Direct) Remittance

Go to Gateway of Tally > Payroll Vouchers

1. Press Ctrl+F4 for Payroll Voucher
2. Press F2, specify the date as 30-4-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In the Employee Filters screen,
Select Salary in the Process for field

Specify 1-4-2009 in the From field

Specify 30-4-2009 in the To field

Select All Items as Employee/Group

70
The completed Employee Filters screen is displayed as shown:

Select Cash in the Payroll Ledger field

Press Enter to accept the screen (the Cash ledger is prefilled in the Account
field)
All the pay values are calculated for the applicable pay heads for each employee
grouped under the selected group.
The Payroll Voucher Creation screen is displayed as shown:

71
5. Press Enter

II. Bank Transfer

Bank transfer refers to disbursement of Salaries directly into the Employee Bank
Accounts by inti-mating the Bank through Payment advice. Tally.ERP 9 facilitates
processing salaries through Bank transfer with the help of predefined Salary process.

Create Salary Payable Ledger

Before passing the Salary payment voucher, create the following ledger:

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
The completed Salary Payable Ledger creation screen is displayed as shown:

72
Press Enter to accept

Create Payroll Voucher

Go to Gateway of Tally > Payroll Vouchers
1. Press Ctrl+F4 for Payroll Voucher
2. Press F2, specify the date as 31-05-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In the Employee Filters screen,
Select Salary in the Process for field as shown

Specify 01-05-2009 in the From field

Specify 31-05-2009 in the To field
Select All Items as Employee/Group
Select Salary Payable in the Payroll Ledger field as shown

73
5. Press Enter (All the pay values are calculated for the applicable pay heads for each
employee grouped under the selected group).
6. Press Enter and specify the pay values for the pay heads defined as user-definable
valuesagainst each employee
7. Press Enter to accept

After passing the above entry, the salaries payable for the month of May 2009 are
transferred to the Salary Payable Ledger, at the time of payment of salaries, the amount
is reversed.

Payment of Salaries (Salary Disbursement)

In Tally.ERP 9, Payment voucher can be used to effect salary disbursement to
employees. The payment voucher for the salaries payable may be passed through
regular payment voucher or automated using the preset Salary Payment process
available in Tally.ERP 9 for error free data input during Payroll Payment entry with the
help of Auto Fill facility.
Before passing the payment voucher, necessary Bank Accounts should be created. To
make the
Salary payment, follow the steps given below:
Go to Gateway of Tally > Accounting Vouchers
1. Press F5 for Payment Voucher
2. Press F2, specify the date as 31-05-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In the Employee Filters screen,
74
Select Salary Payment in the Process for field as shown.

Specify 01-05-2009 as From period

Specify 31-05-2009 as To period
Select All Items in the Employee/Group field
Select HDFC Bank in the Bank / Cash Ledger field as shown.
Select Salary Payable in the Payroll Ledger field
The completed Employee Filters screen displays as shown.

5. Press Enter and the employee payroll details appear by default.

6. Enter the details of the transactions in the Narration field
The completed Payroll Payment Entry screen is displayed as shown.

75
7. Press Enter to accept

76