Computerised Accounting syllabus B.

COM (Computers)

CHAPTER I: MAINTAINING CHART OF ACCOUNTS IN ERP:

Introduction-Getting Started with ERP - Mouse/Keyboard Conventions-Company Creation-Shut a Company-
Select a Company-Alter Company Details-Company Features and Configurations-F11: Company Features-F12:
Configuration-Chart of Accounts-Ledger-Group-Ledger Creation-Single Ledger Creation-Multi Ledger Creation-
Altering and Displaying Ledgers-Group Creation-Single Group Creation-Multiple Group Creation-Displaying
Groups and Ledgers-Displaying Groups-Display of Ledgers-Deletion of Groups and Ledgers – P2P procure to
page.

CHAPTER II: MAINTAINING STOCK KEEPING UNITS (SKU):

Introduction-Inventory Masters in ERP - Creating Inventory Masters-Creation of Stock Group-Creation of Units
of Measure-Creation of Stock Item-Creation of Godown-Defining of Stock Opening Balance in ERP Stock
Category-Reports.

CHAPTER III: RECORDING DAY-TO-DAY TRANSACTIONS IN ERP:

Introduction-Business Transactions-Source Document for Voucher-Recording Transactions in ERP - Accounting
Vouchers-Receipt Voucher (F6)-Contra Voucher (F4)-Payment Voucher (F5)-Purchase Voucher (F9)-Sales
Voucher (F8)-Debit Note Voucher-Credit Note (Ctrl+F8)-Journal Voucher (F7).

CHAPTER IV: ACCOUNTS RECEIVABLE AND PAYABLE MANAGEMENT:

Introduction-Accounts Payables and Receivables-Maintaining Bill-wise Details-Activation of Maintain Bill-wise
Details Feature-New Reference-Against Reference-Advance-On Account-Stock Category Report-Changing the
Financial Year in ERP

CHAPTER V: MIS REPORTS:

Introduction-Advantages of Management Information Systems-MIS Reports in ERP - Trial Balance - Balance
Sheet-Profit and Loss Account-Cash Flow Statement-Ratio Analysis-Books and Reports - Day Book-Receipts and
Payments-Purchase Register-Sales Register-Bills Receivable and Bills Payable.

1|Page
 Unit-I MAINTAINING CHART OF ACCOUNTS IN ERP

Introduction:-
Accounting software is a computer software that records and process accounting transactions with functional
modules such as accounts payable, accounts receivable, pay roll and trial balance. It functions as an accounting
and inventory information system.
In the world market, there are many number of accounting software’s developed by various software companies.
Among them, Tally ERP 9 is the simple and powerful accounting software developed by Tally solutions Pvt.Ltd.
Bangalore.
The special feature of Tally ERP9 is that has been created exclusively to face the demands and requirements of
small, medium and large enterprises. It is completely integrated, affordable and highly reliable software. It is user
–friendly to operate. Tally ERP 9 is constructed to automate and integrate all business activities such as purchase,
sales order processing, finance inventory and manufacturing.
As its name suggests, "computerized accounting" is accounting done with the aid of a computer. It tends to involve
dedicated accounting software and digital spread sheets to keep track of a business or client's financial
transactions. • Computerized accounting is a beneficial use of current technological advances. Not only has it
revolutionized the traditional paper methods of accounting, but it has also created new types of accounting
applications for business.
Companies now create entire accounting information systems that integrate all business operations, including
external suppliers and vendors in the value chain. • Computerized accounting systems (or software) have replaced
manual-based accounting in virtually all businesses and organizations, providing accountants, managers,
employees and stakeholder’s access to vital accounting information at the touch of a button. Computerized
accounting systems automate the accounting process--improving efficiency and cutting down costs. •
Computerized accounting has many advantages over traditional manual accounting. Computerized accounting
tends to be more accurate, is faster to use, and is less subject to error than its manual counterpart.
A computerised accounting system is an accounting information system that processes the financial transactions
and events as per Generally Accepted Accounting Principles (GAAP) to produce reports as per user requirements.
Every accounting system, manual or computerised, has two aspects. First, it has to work under a set of well-
defined concepts called accounting principles. Another, that there is a user -defined framework for maintenance
of records and generation of reports In a computerised accounting system, the framework of storage and
processing of data is called operating environment that consists of hardware as well as software in which the
accounting system, works. The type of the accounting system used determines the operating environment. Both
hardware and software are interdependent. The type of software determines the structure of the hardware. Further,

2|Page
the selection of hardware is dependent upon various factors such as the number of users, level of secrecy and the
nature of various activities of functional departments in an organisation.

Modern computerised accounting systems are based on the concept of database. A

database is implemented using a database management system, which is define by a set of
computer programmes (or software) that manage and organise data effectively and provide
access to the stored data by the application programmes. The accounting database is well-
organised with active interface that uses accounting application programs and reporting
system. Every computerised accounting system has two basic requirements;
• Accounting Framework : It consists a set of principles, coding and grouping structure of
accounting.
• Operating Procedure : It is a well-defined operating procedure blended suitably with
the operating environment of the organisation.
The use of computers in any database oriented application has four basic requirements
as mentioned below ;
• Front-end Interface : It is an interactive link or a dialog between the user and database-
oriented software through which the user communicates to the back-end database. For
example, a transaction relating to purchase of goods may be dealt with the accounting
system through a purchase voucher, which appears on the computer’s monitor of data
entry operator and when entered into the system is stored in the database. The same
data may be queried through reporting system say purchase analysis software
programme.
• Back-end Database : It is the data storage system that is hidden from the user and
responds to the requirement of the user to the extent the user is authorised to access.
• Data Processing : It is a sequence of actions that are taken to transform the data into
decision useful information.
• Reporting System: It is an integrated set of objects that constitute the report.
The computerised accounting is also one of the database-oriented applications
wherein the transaction data is stored in well-organised database. The user operates on such
database using the required and desired interface and also takes the desired reports by
suitable transformations of stored data into information. Therefore, the fundamentals of
computerised accounting embrace all the basic requirements of any database-oriented
application in computers. Accordingly, the computerised accounting system has the above
four additional requirements.

Getting Functional with Tally.ERP 9

Tally.ERP 9 Start-up Tally.ERP 9 can be started in any of the following ways :

3|Page
  Click on Start > Programs > Tally.ERP 9 > Tally.ERP 9 or double click on the Tally.ERP 9 icon on your
desktop
The welcome screen Tally.ERP 9 – Power of Simplicity appears while the software
loads. You
will be ready to explore Tally.ERP 9, the moment the Tally.ERP 9 start up screen appears.
The Tally.ERP 9 Start-up Screen appears as shown below:

Tally.ERP 9 Screen Components

 Title bar: Displays the Tally.ERP 9 version number.
 Horizontal button bar: Selection of Language key, Keyboard Language and Tally.ERP 9 Help.
 Close button: Performs the standard Windows Operating Systems function (Windows 95 onwards),
allowing you to minimise Tally.ERP 9 and work on other applications. To restore Tally.ERP 9, click the
Tally.ERP 9 icon on the taskbar.
 Gateway of Tally: Displays menus, screens, reports and accepts the choices and options which you select
to view data as required.

4|Page
  Buttons toolbar: Displays buttons which provide quick interaction with Tally.ERP 9. Only buttons
relevant to the current task are visible.
 Calculator Area: Used for Calculator functions.
 Info Panel: Displays Version number, License details, Configuration details.
Mouse/ Keyboard Conventions
While working with Tally.ERP 9, use the following conventions.

Switching between Screen Areas

When Tally.ERP 9 first loads, the Gateway of Tally screen displays. To toggle between this screen and the
Calculator/ ODBC server area at the bottom of the screen, press Ctrl+N or Ctrl+M as indicated on the screen. A
green bar highlights the active area of the screen.

Quitting Tally.ERP 9
You can exit the program from any Tally.ERP 9 screen, but Tally.ERP 9 requires all screens to be
closed before it shuts down.
To quit working on Tally.ERP 9,
 Press Esc until you see the message Quit? Yes or No ? Press Enter or Y, or click Yes to quit Tally.ERP 9.
 Alternatively, to exit without confirmation, press Ctrl+Q from Gateway of Tally.
 You can also press Enter while the option Quit is selected from Gateway of Tally.
Creation/ Setting up of Company in Tally.ERP 9
The first step towards understanding Tally.ERP 9 is to create a company in Tally.ERP 9. Create a
company using the Company Creation screen.

Creation of a Company
In Tally ERP 9 Software, the term company represents a file that contains accounting and inventory data. The first
step to begin Tally E.R.P 9 operations is to create company. It can be done by the following ways.

5|Page
Step:-1 In the Gate way of Tally , Press Alt+F3 to get company info menu.
Step:- 2 In the company info menu, Click create company.
Step:- 3 company creation screen will automatically appear
Step:- 4 The company creation screen divided into major screens.
a) Company particulars
b) base currency information
Step:5 …enter the data in the respective fields
Step 6:- Finally, press y to accept the screen.
Step 7:- once the company creation screen is accepted , the gateway of tally loads.

The Company Creation screen displays as shown.

company creation screen

Each field in the Company Creation screen is explained below. To navigate between the fields,
use the enter key or the tab key or arrow keys or the mouse.

6|Page
Fields Description

Tally.ERP 9 assumes that the company is to be created in the data path given in the Tally.INI file,
which is displayed by default. Thisfield is skipped by default. However, you can change this path, if
Directory
you want to, by using the backspace key, so that Tally.ERP 9 saves the data to a different directory
specified by you.

This specifies the name of the company as it appears in Tally.ERP 9. If you have several companies
Name to create with similar names, you will have to distinguish between them to provide a unique name for
Tally.ERP 9.

The company name given in the Name field automatically appears in this field. This can be changed
Mailing Name according to your requirements. The correct name of the company for mailing purposes should be
entered.

The address of the company (The mailing name and address details are picked from here for any
Address
report such as balance sheet and statement of accounts).

Statutory Compliance for Select India from the list of countries.

State Select the appropriate State from the list of States.

Pin Code Enter the PIN code of the specified address.

Telephone No. Enter the telephone number of the company.

E- Mail E-mail address will be used to e-mail documents, reports and data from Tally.ERP 9.

Mobile No. Enter the mobile number of the company.

This refers to the currency symbol Tally.ERP 9 will use for monetary values. By default, Tally.ERP
Currency Symbol
9 displays Rs.

Maintain Select the nature of the company i.e, Accounts only or Accounts with Inventory.

From Specify the Financial Year (FY) for the company. Tally.ERP 9 considers 12 months from the
Financial Year date you give here as the Financial Year. For example, if you give 1st April 2009, your FY will be
April to March - in this case, ending with 31st March 2010.

The date given for ‘Financial Year From’ is automatically displayed. However, we can specify the
Books Beginning From actual date on which the books of accounts start. In case our accounts are opened mid-way during the
financial year specified, we can enter the required date and start the books of accounts accordingly.

TallyVault is an enhanced security feature utilised to protect company data in an encrypted form by
means of a Password. The
TallyVault password entered ensures that the data is maintained permanently in an encrypted form
TallyVault Password without retaining information of
the password used. Data is not accessible without the TallyVault password. Remember to keep this
password private and known
only to those who need to know. If the password is lost, your data cannot be recovered.

Tally.ERP 9 has a range of security controls, which can define the authority of various users to
Use Security Control
access the information and to enter/ alter/delete the vouchers.

7|Page
Base Currency Information
In Tally ERP 9 the default of currency for the company and how the amounts should be displayed needs toe
specified.
1. Base Currency symbol:-Pre-set default currency is
2.Formal name: complete name for the currency symbol. By default, this is set to INR
3. Number of decimal places:- By default , this is set to 2
4. Is Symbol suffixed to amounts? By defult this is set to No
5.symbol for decimal portion:- specify the decimal portion for the currency mentioned Enter paise.
6. Show amounts in millions? Tally ERP 9 caters to currencies where the different partrs of large amounts are
called by special names. By default, this is set to No.
7. Decimal Places for printing Amounts in words: The number of decimal places to print the amount in words can
be specified. This number should be equal to or lesser than the number specified in Number of Decimal places
field.

Selection of Company:-
LOADINGA CO MPANY US INGTHE SELECT COMPANY OPTION
In order to load a company using the Select Company option, disable the default loading of
a company in Tally.ini file. Set Default Companies to No OR place a semi-colon before Load = 0001
(company number – placing a semicolon means that the words following it in that line would not be
executed. Each line is a separate command).

On double –clicking the Tally icon, the appears as:

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

Press Enter on Select Company or use the button F1: Select Cmp. Tally displays this screen.

8|Page
 Tally displays

1. Company Name (All the companies created are displayed)

2. System – generated code for each company displayed
3. The Financial Year information relating to the number of years data present in the company.

Note: The system-generated code for each company is displayed to assist you in identifying which
company you wish to work on in case you have multiple companies with the same name (as displayed in
the above screen).

Select the required company to go to the Gateway Of Tally for that company.
GATEWAY OF TALLY
Gateway of Tally is the screen that appears on selecting a company. The Gateway of Tally
menu differs based on the type of company selected. An Accounts-with-Inventory Company.

Gateway of Tally of an Account Only Company

The Gateway of Tally menu of an Accounts Only company appears as shown

below:

9|Page
 The Gateway of Tally screen is separated into four sections- Title Area, Main Area (Ctrl+M),
Calculator Area (Ctrl+N) and the Button Bar.

Main Area

The left side of the Main Area gives information on:

1. Current Period – which is the currently loaded company’s accounting period.

2. 2. Current Date – This is the date of the last Voucher Entry for the selected company.

3. List of Selected Companies – This displays the name of the loaded company The
Main Area gives information on:
1. Creation of Accounting Master and Importing Master information

2. Creation of Accounting Vouchers and Importing transaction information

3. Viewing and printing financial reports using the information given in Master and
Transactions,

Button Bar

The Button Bar displays the following buttons (keys):

10 | P a g e
 1. Help (Alt + H) – To access Tally’s online context-sensitive help

2. F1: Select Cmp – To select a company

3. F1: Shut Cmp – To shut of close the company

4. F2: Date – To change the current date

5. F2: Period – To change the period

6. F3: Company- To select a different company

7. F3: Cmp Info – To access the Company Info. Menu

8. F11: Features – To access the Company features for a company

9. F12: Configure – To access the configuration settings

Note: You cannot load companies with the same name at the same time. The loaded or
selected company will have to be shut first in order to load the other company.

11 | P a g e
 Gateway of Tally of an Accounts-with-Inventory Company

The Gateway of Tally menu of Accounts-with Inventory Company appears as shown

below:

Company Info. Menu

The Company Info. (Information) menu appears as shown below::

The menu options in the Company Info. are as follows

Select Company

12 | P a g e
 Allows you to Select or load a company.
Shut Company
Allows you to shut a company.
Create Company
Allows you to create a company.
Alter
Allows you to alter a company.
Change Tally Vault
Allows you to secure the data by providing a Tally Vault password
Backup
Allows you to take a backup of the company data.
Restore
Allows you to restore a data backup.

SHUT A COMPANY

Shut a Company is to unload it. It does not mean that you have deleted it. Simply select
it again to load and work on it again.

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

13 | P a g e
 The screen appears as shown below:

Select the company to be shut from the List of Primary Companies.

ALTER A COMPANY
You can modify any information at any time that is set while creating a company.

1. Go t o Gateway of Tally

2. Select F3: Cmp Info. (ALT+F3) from the button bar

3. Select Alter and press Enter and the screen appears as shown below:

14 | P a g e
 Make the necessary changes in the required fields. To change the password if Use Security
Control is set to Yes:

4. Enter the Name of Administrator.

5. Enter the new password.

6. Re-enter the password in the Repeat field to confirm.

7. Enter the Old Password and Accept the screen to alter the company

DELETE A COMPANY
To delete a company, you have to load the company first.

1. Select F3: Cmp Info. (ALT+F3) from the Gateway of Tally to proceed to the
Company Information menu.

2. Select Alter and press Enter.

3. Select the company to be deleted. The Company Alteration screen is displayed.

4. Use Alt + D to delete. Tally will prompt for a confirmation on deleting thecompany.
5. Press enter to delete the company.
Note: Deletion of a company is irreversible. The company is permanently deleted from the system
Company Features and configuration

15 | P a g e
Customization is process of doing some modifications over an existing application of form as per the user’s
requirement. Tally ERP 9 supports customization in the form of two sections. They are
1. Company Features
2. Company Configuration
Company Features:- The company features helps to set some special customize features for an enterprise
exclusively. The short cut key is F11 and it is also available on the button bar.
Features of company:- The F11 Features is divided into the following major categories
1. Accounting Features
2. Inventory features
3. Statutory features
4. Tally. Net features
5. Audit Features
6 Add- on features
Accounting Features:- The accounting features consist of configuration / functionally, which generally
affects accounting transactions and reports. This option can be opened up by clicking F11 key on the
company Features. The accounting features are further sub divided into six sections, namely.
General Out standings Management
Cost/ Profit centers Management
Invoicing
Budgets /Scenario Management
Other features

16 | P a g e
2. Inventory Features:- The inventory Features comprises of configurat9on/functionality pertaining to
inventory transactions and reports. This options can be opened up by clicking F2key on the company
Features. The inventory features are further divided in to seven sections namely:-
General
Storage & classification
Order processing invoicing involving
Purchase Management
Sales management
Other features
Note:- this features will not appear in the case of a company maintaining accounts only.

Statutory and Taxation Features:- The statutory & Taxation features comprises of configuration /functionally
pertaining to statutory companies available in tally ERP 9. This option can be opened up by clicking F3 key
on the company Features. The statutory features are country specific and strictly depend upon the country
selected in the company creation screen. The following features are available, when India is selected in the
statutory compliance for field in the company creation screen.
Excise
Value added tax
Service tax
Tax deducted at source
Tax collected at source
17 | P a g e
Pay roll
Income tax
MCA Reports
Notes:-
1.The statutory Features relating to payroll(i.e. Enable pay roll statutory option) will be available in F3 :
statutory features ,only when maintain Accounts with inventory is selected in the company creation.

Features of company:-
The F11 Features is divided into the following major categories
1. Accounting Features
2. Inventory features
3. Statutory features
4. Tally. Net features
5. Audit Features
6 Add- on features
Accounting Features:- The accounting features consist of configuration / functionally, which generally
affects accounting transactions and reports. This option can be opened up by clicking F11 key on the
company Features. The accounting features are further sub divided into six sections, namely.
General Out standings Management
Cost/ Profit centers Management

18 | P a g e
Invoicing
Budgets /Scenario Management
Other features

2. Inventory Features:- The inventory Features comprises of configurat9on/functionality pertaining to

inventory transactions and reports. This options can be opened up by clicking F2key on the company
Features. The inventory features are further divided in to seven sections namely:-
General
Storage & classification
Order processing invoicing involving
Purchase Management
Sales management
Other features
Note:- this features will not appear in the case of a company maintaining accounts only.

19 | P a g e
Statutory and Taxation Features:- The statutory & Taxation features comprises of configuration
/functionally pertaining to statutory companies available in tally ERP 9. This option can be opened up by
clicking F3 key on the company Features. The statutory features are country specific and strictly depend
upon the country selected in the company creation screen. The following features are available, when India is
selected in the statutory compliance for field in the company creation screen.
Excise
Value added tax
Service tax
Tax deducted at source
Tax collected at source
Pay roll
Income tax
MCA Reports
Notes:-
1.The statutory Features relating to payroll(i.e. Enable pay roll statutory option) will be available in F3 :
statutory features ,only when maintain Accounts with inventory is selected in the company creation.

20 | P a g e
 Tally .Net Features:- The tally .Net features screen comprises of connection details, Remote Access and
SMS Access details of a company for connecting on Tally.Net . This option can be opened by clicking F4
key on the company features. The Tally.NET Features menu will be available only when use security control
is enabled in the company creation.
Audit Features: - The audit features include the audit working papers and audit priorities and categories.
This option can be opened up by clicking F5 key on the company features.
Add-On Features:- The Add –on features is a place holder for the features provided in the Add-Ons /Local
TDLs loaded This feature permits the users to buy customised solutions from Tally partner or any other
solution provider. This option can be opened up by clicking F6 key on the company features.

Company Configuration

The F 12 key context –sensitive. The user gets different options on pressing this key at different screens. In each
case , configuration options relevant to the specific screen will appear. The settings which the user specifies
through F12 are global and not company specific . Any change made becomes effective for all companies in
Tally.
It is advisable to configure every company before working on it by pressing the F12 key at the end of button
bar, which will bring up the following screen.

21 | P a g e
1.General :- The general configuration option provides country detals , style of names ,style of short date
,separator used in short date,etc..,
2.Numaric Symbol:- it gives the details of decimal plases, thousands seperator, put sign before currency/Unit
symbols.
3. Accounts and inventory information:- This option allows us to configure acounts masters and inventory
masters.
4. Voucher Entry:- A voucher is adocumentary evidence of a business transaction. In mannual accounting, one
must record transactions through journal entries where as in Tally it is done through voucher entry.
5. Invoice/ Order entry:-Recording a sale or purchase transaction in setail is made possible only through
invoices. Furthure automatic caluclation of discount ,tax ,e.t.c…, is also possible only in invoice mode.
6. Pay roll configuration:- The pay roll configuratiion screen allows you to enable additional configuration s
for entering information related to stautotry details and resigned /retired employees.
7. Banking configuration:-This configuration helps you to configure settings related to bank reconcilation
statement.
8 Printing :- In this menue, the has the option to configure voucher layouts for printing vouchers and invoice
statements.
9. E- Mailing Configuration:- This configration helps you to difine setting related to email such as email
server address authentication details and so on .
10 Data configuration :- This configuration helps you to define location of language files , tally configuration
file, export files,data files and to get details of the companies to be loaded on startup.
11 Advanced configration :- This configuration helps to specify client/server configuration ,
Connection configuration and proxy configuration for ODBCconnectivity and synchronisation of data .
12 Products and features :-This configuration includes the product releases and TDL FILES/ADD-ONS
features.
22 | P a g e
13 Licensing :- Licensing option is provided to activate tally licence online or offline.
CHART OF ACCOUNTS

CLASSIFICATION OF ACCOUNT HEADS

Usually, grouping of accounts is dome only when reports are needed. This may result in delay in preparing the
reports. Tally allows you set up chart of accounts.
You can group the ledger accounts while creating them. Tally will enable your reports and statements to reflect
the desired classification at any point. In Tally, you can also re- group the ledgers (with some minimal
restrictions) if re-classification is necessary. Re-grouping becomes necessary whenever there is a change in the
nature of information, however, re- grouping cab be done only by users who have authorised rights.

At the highest level of grouping, accounts are classified are classification into capital or revenue – specifically
into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set
of reserved groups and allows you to modify their names or create subgroups.

Sub-Groups

A sub-Group behaves exactly like a group and is created under a group.

Concept of Sub-Groups

Groups have a hierarchical structure. The main group of accounts that determine the entire accounting and their
presentation are the asset, liability, income or the expenditure. There main groups ascertain whether a ledger
affects Profit & Loss Account as a revenue item or if it affects the Balance Sheet.

The Reserved Primary Groups and subgroups are: Primary Groups of Capital Nature
1. Capital Account

a) Reserves and Surplus [Retained Earnings]

23 | P a g e
2. Current Assets

a) Bank Accounts

b) Cash-in hand

c) Deposits (Asset)

d) Loans & Advances (Asset)

e) Stock-in-hand

f) Sundry Debtors

3. Current Liabilities

a) Duties and Taxes

b) Provisions

c) Sundry Creditors

d) Fixed Assets

4. Investments

5. Loans (Liability)

• Bank OD Accounts [Bank OCC Accounts]

a) Secured Loans

b) Unsecured Loans

6. Suspense Account

7. Miscellaneous Expenses (Asset)

8. Branch/Divisions

9. Sales Account

10. Purchase Accounts

11. Direct Income[Income Direct]

24 | P a g e
12. Indirect Income [Income Indirect]

13. Direct Expenses [Expanses Direct]

14. Indirect Expenses [Expanse Indirect

Note: Aliases for the groups are given in square brackets [].

A Discussion no Each of the Reserved Groups

1. CAPITAL ACCOUNT
This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share
Capital, Partners’ Capital A/c, Proprietor’s Capital Account and so on.

Reserves and Surplus [Retained Earnings]

This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so no.

2. CURRENT ASSETS
Current Assets record the assets that do not belong to either Bank Accounts or Case-in-Hand sub-groups.

Bank Accounts

Current account, savings account, short tern deposit accounts and so on.

Cash-in-hand

Tally automatically creates Cash A/c in this group. You can open more than one each account if necessary.

Note: An account under Cash-in-hand group or Bank Account/Bank OCC A/c group is printed as separate Cash
Book in the traditional Cash Book format and does not form part of the Ledger.

Deposits (Asset)

25 | P a g e
Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company (not received by the
company, which is a liability).

Loans & Advances (Asset)

This records all loans given by the company and advances of a non-trading nature (example: advance against
salaries) or even for purchase of Fixed Assets. We do not recommend you to open advances to Suppliers’
account under this Group.

Stock-in-hand

This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods. The balance control
depends on whether you have selected Integrated Account-cum- Inventory option while creating the company.

Integrated Accounts-cum-Inventory

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

You are not allowed to directly change the closing balance of an account under this group. You are allowed to
pas transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet
as Closing Stock.

Non- Integrated Accounts-cum-Inventory

If integrated Account-cum-Inventory option is set to No, it ignores the inventory books figures and picks up
manually entered closing stock balances from the ledger account created. This provides th facility to maintain
accounts separately and inventory separately.

26 | P a g e
You are not allowed to pass transactions if your accounts that come under this Group. It allows you to hold
opening and closing balance only. Since no vouchers can be passed for these accounts, they are the only
accounts for which the closing balances can be directly altered (by an authorised user only).

3. CURRENT LIABILITIES
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly
under this group. Sub- groups under Current Liabilities are Duties and Taxes, Provisions and sundry Creditors

Duties and Taxes

Duties and Taxes contain all tax accounts like VAT, MODVAT, Excise, Salas and other trade taxes and the total
liability (or asset in case of advances paid) and the break-up of individual items.

Provisions

Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions.

4. INVESTMENTS
Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit
accounts and so on. This allows you to view the total investments made by the company.

5. LOANS (LIABILITY)
Loans that a company has borrowed, typically long-terms loans.

Bank OD Accounts [Bank OCC Accounts] Tally provides you with distinct types of Bank Accounts, Bank OCC
A/c

To record the company’s overdraft accounts with banks. For example, Bill Discounted A/cs and Hypothecation
A/cs etc.

27 | P a g e
Note: An account under Bank OCC A/c group is printed as separate Cash Book in the traditional Cash Book
format and does not form part of the Ledger.

Secured Loans

Term loans or other long/medium term loans, which are obtained against security of some asset. Tally does not
verify the existence of the security. Typical accounts are Debentures, Term Loans, and so on.Unsecured Loans
Loans obtained without any security. Example: Loans from Directors/partners or outside parties.

6. SUSPENSE ACCOUNT
In modern accounting, many large corporations use Suspense Ledger to track the money paid or recovered, the
nature of which is not yet known. The most common example is money paid for Traveling Advance whose
details will be known only upon submission of the TA bill. Some companies may prefer to open such accounts
under Suspense Account.
Loans and Advances (Asset) group.
The Suspense Account is a Balance Sheet item. Any expense account even if it has ‘suspense’ in its name, it
should be opened under Revenue group like Indirect Expenses and not under Suspense Account group.

7. MISCELLANEOUS EXPENSES (ASSET)

This group is typically used for legal disclosure requirements such as Schedule VI of the Indian Companies Act.
If should hold incorporation and per-operative expenses. Companies would write off a permissible portion of
the account every year. A balance remains to an extent that cannot be written off in Profit & Loss Account.
Tally does not show loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss
Account balance is displayed separately in the Balance Sheet

8. BRANCH/DIVISIONS
This maintains ledger accounts of all your company’s branches, divisions, affiliates, sister concerns,
subsidiaries and so on. Tally permits Sales and Purchase transactions to take place with accounts. Just treat
them as any other party accounts. If you wish to maintain the books of a branch/division on your computer, you

28 | P a g e
must open a separate company. (Tally allows maintenance of multiple company accounts).Revenue- Primary
Groups

9. SALES ACCOUNT
You can classify your sales accounts based on Tax slabs or type of slabs or type of sales. This also becomes a
simple mechanism for preparation of Tax returns.

Examples:
• Domestic Sales
• Export Sales
Now under Domestic Sales open the following ledgers:
• Sales (10%)
• Sales (5%)
• Sales (exempt)
You can even open an account as Sales Returns under the group Domestic Sales to view your net sales after
returns (or the returns may be directly passed through Journal against the specific Sales account).

10. PURCHASE ACCOUNT

This is similar to sales accounts, except for the type of transactions.

11. DIRECT INCOME [INCOME DIRECT]

These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under Sales
Accounts. You may also user this group for accounts like Servicing, Contract Change that follow sales of
equipment.

For a professional services company, you may not use Sales Account group at all.
Instead, open accounts like Professional Fees under this group.

12. INDIRECT INCOME [INCOME INDIRECT]

These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.

29 | P a g e
13. DIRECT EXPENSES [EXPENSES DIRECT]
These are manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

14. INDIRECT EXPENSES [EXPENSES INDIRECT]

All administrative, selling or non-direct expenses.

Profit & Loss Account is a reserved primary account in Tally. You can use this account to pass adjustment
entries through journal vouchers. For example, transfer of profit or loss account to Capital or Reserve account.

Creating a Group

You can create multiple or single group from create option. In multiple group creation, the sub-groups will
automatically inherit the characteristics of their parent groups.

Go to Gateway of Tally > Accounts Info.> Groups > Create (under Single Group) The Group Creation screen
displays
Name of Group

Enter the name of the Group to be created. For example, Administrative Expenses

Alias

Enter an alias name to allow access to the group using the Alias in addition to its name of leave it blank. For
example, for Administrative expenses, you can enter Office Expense or even an alphanumeric code, say E001,
as an alias.

Under

Specify under which existing (Parent) group the sub-classification is required. If it is a new primary group,
select Primary (requirement of a new primary group is very rare, but the option exists). You can also create a
new Parent Group by using Alt+C.

30 | P a g e
Note: Creation of new Primary Group is not allowed if an Allow Advanced entry in Masters is set to No in F12:
Configure.

Additional Information

If a group (e.g. Printing) is created under Primary, you must select the appropriate option from the list whether it
is an asset, liability, income or expenses. If you select an income or expenses you should specify whether it will
affect the gross profits or not by suitably setting the option Does it affect Gross Profits? to Yes/No

You can use this concept when you wish to segregate your profits into Operative Profit and Net Profit. This
helps you when you want to consider other revenue accounts in addition to Direct instead of Gross and Net
Profit).

Normally, Tally calculates Gross Profit using Opening Stock, Purchase Accounts, Direct Expenses, Sales
Accounts, Direct Incomes and Closing Stock only. To make other accounts contribute to this, without
classifying under these reserved heads, set this option to Yes.

Group behaves like sub-ledger?

This option is applicable to Sundry Debtors group, you can set this to Yes to display Sundry Debtors without
Ledger break-up in statements. Normally, Sundry Debtors will have a large number of ledger accounts under it
and it can be expanded during display to show ledger balances. To disable this detailed display set this option to
No.

Net Debit/Credit Balances for Repotting?

Setting this option to Yes will display either the net debit or credit balance in the report (whichever is higher). If
this is set to No, both debit and credit balances will displayed in the report.

Used for Calculation (e.g. taxes, discounts)?

31 | P a g e
Set this option to Yes if ledgers under this group would have percentages for discounts/taxes to be used for
invoice entry. This gets reflected while passing voucher entry in Invoice mode, it uses the automatic calculation
capability.

Method to allocate when used in purchase invoice

Select the appropriate allocation method from the list, this is used to allocate the expense of the Item in the ratio
of the quantity or value.

Buttons in single group screens F3: Company

This button helps you to open a different company. In the creation mode, you can create groups in the other
company. In alter mode, you can copy the information by accepting the screen (enter or Ctrl+A). The old
company’s information remains. This feature is not available in Display mode.

Groups, Ledgers, Cost Categories, Cost Centers, Voucher Types, Currency, Budgets

This button enables you to switch to the appropriate area without quitting from the current screen.

F11: Features

This allows you to set or modify the company features.

F12: Configure

This enables you to set or modify configuration of the master screen.

Note: Configuration changes affect all companies and changes made in Features affect only the current
company.

Displaying and Altering Group

32 | P a g e
You can display and alter the Group in Single mode or Multiple mode.

Displaying a Single Group

Go to Gateway of Tally > Accounts Info. > Group > Display (under Single Group)

Select the name of the Group from the List of Items. You cannot make any changes in Display mode.

Altering a Single Group

Go to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)

Select the Group that you wish to alter from the List of Groups. Make the necessary changes and click Yes to
save the changes.

Displaying Multiple Groups

Go to Gateway of Tally > Accounts Info. > Group > Display (under Multiple
Group)

Select the Group from the List of Groups to display all the Groups under the selected Group or select All Items
to display all Groups. The Multi Group Display screen lists Groups and the corresponding details of the Groups.

Altering Multiple Group

Go to Gateway of Tally > Accounts Info. > Group > Alter (under Multiple Group) Select the Group for which
you want to alter from the List of Groups. In Multi
Group Alteration screen, make the necessary changes and click Yes to save changes.

Deleting a Group

Gateway of Tally > Accounts Info > Groups > Single/Alter

33 | P a g e
The Delete function is performed through the single alteration mode. You cannot delete groups form the
Multiple Alteration mode.

1. Select the group to be deleted.

2. Press Alt+D to delete.

Note: You cannot delete a group if it is a reserved group or a group has sub-groups or ledgers in it.

Note: A new group created under primary will not reflect in reports until you pass masters/transactions for that
group.

Introduction to Ledgers

A Ledger is the actual account head to which you identify a transaction. In Tally, you pass all accounting
vouchers using Ledgers. However, all Ledgers have to be classified into Groups. Hence a thorough
understanding of account classifications is important for working with Ledgers.

Go to Gateway of Tally > Accounts Info. > Ledgers

Creating a Ledger

Ledgers can be created in single and multiple modes. In multiple mode you can create multiple ledgers at a time.

34 | P a g e
 UNIT II: MAINTAINING STOCK KEEPING UNITS (SKU)

Introduction:
Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock,
stock movement between storage locations or godowns and providing information on stock availability.
Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that the financial
statements reflect the closing stock value from the Inventory system.
The inventory system operates in much the same way as the accounting system.
 First you set up the inventory details, which is a similar operation to creating the chart of accounts
although, in this case, there are no pre-defined set of stock groups.
 Second, you create the individual stock items, which is similar to setting up the ledgers.

In a newly created company the Inventory Info. menu comprises of four types of Masters, viz. Stock
Groups, Stock Items, Units of Measure and Voucher Types.
Go to the Gateway of Tally > Inventory Info.
The Inventory info. menu is displayed as shown:

35 | P a g e
 Figure 4.1 Inventory Info. Menu

The above Inventory Masters types are explained in detailed in the following sections.
 Units of Measure

Let us take the example of Indus Enterprises that sells Televisions and Music Systems. Given below is
the structure of items being sold.
Group A – Televisions
A1 – Sony A1a – Sony 29 inches TV
A1b – Sony 25 inches TV
A2 – Philips A2a – Philips 29 inches TV
A2b – Philips 25 inches TV
A3 – Videocon A3a – Videocon 29 inches TV
A3b – Videocon 25 inches TV

36 | P a g e
 Group B – Music Systems
B1 – Sony B1a – Sony Tape-Recorder
B1b – Sony CD Player
B2 – Videocon B2a – Videocon Tape-Recorder
B2b – Videocon CD Player

The televisions are sold in numbers. Hence, the Unit of Measure will be Nos.
Indus Enterprises has two Godowns, the Bangalore Godown and the Mumbai Godown. The grouping
structure in Tally.ERP 9 is as follows:
Stock Group
1. Televisions (main stock group)
 Sony TV – stock group under Televisons
 Philips TV – stock group under Televisons
 Videocon TV – stock group under Televisons
2. Music Systems (main stock group)
 Sony Music Systems – Stock Group under Music Systems
 Videocon Music Systems – Stock Group under Music Systems

Under the stock group Televisions, let us create stock groups based on the different brands being sold viz.
Sony, Philips and Videocon. This helps to find the total sales of a particular brand of tele- visions at any
given point of time. In order to compare the total sales of the 29 and 25 inches tele- visions respectively,
Tally.ERP 9's feature of Stock Categories for parallel classification can be used.
Experiment Creation of Inventory Masters in Indus Enterprises.
4.1 Stock Groups
Stock Groups are provided to help in the classification of stock items. Classification is done based on
some common behaviour. Grouping stock items makes it easy to identify and report them in the
statements. For example, items of a particular brand can be grouped together so that you can get the
inventory details of all the items of that brand.

37 | P a g e
 4.1.1 Creating Stock Group
i. Create the Stock Group – Television under Primary.
Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single Stock Group).

Ensure that the screen appears as shown below:

Figure 4.2 Stock Group Creation — Television

 Press Y or Enter to accept the screen.

Similarly, create Music Systems under Primary.

ii. Create Sony TV under Televisions.
The screen is displayed as shown below:

Figure 4.3 Stock Group Creation — Sony TV

 Press Y or Enter to accept the screen.
Practice Exercise
Create the following Stock Groups in the similar manner

38 | P a g e
 Name Under Can Quantities
of items be
ADDED
Philips TV Televisions Yes
Videocon TV Televisions Yes
Sony Music Systems Music Systems Yes
Videocon Music Systems Music Systems Yes

Stock Categories
This is a feature, which offers a parallel classification of stock items. Like Stock Groups, Stock cat- egories
are also classified based on some similar behaviour. The advantage of using Tally.ERP 9 lies in
categorising Stock items together, (based on functionality) across different stock groups. This enables you
to obtain reports for alternatives or substitutes of a stock item.
 Set Yes to Maintain Stock Categories in F11: Features (F2: Inventory Features) to get an
additional option Stock Categories under Inventory Info.
Creating Stock Category
Go to the Gateway of Tally > Inventory Info. > Stock Categories > Create.
i. Create Stock Category 29 inches TV Under Primary

39 | P a g e
 Figure 4.4 Stock Category Creation — 29 inches TV
Press Y or Enter to accept the screen.
Similarly , create Stock Category 25 inches TV under Primary.
4.2 Godowns / Locations
A place where stock items are stored is referred to as Godowns. You can specify where the stock items are
kept. For example: A warehouse, shelf or rack etc, and obtain stock reports for each Godown and account
for the movement of stock between locations/Godowns.
Set Yes to Maintain Multiple Godowns in F11: Features (F2: Inventory Features) to get
additional option like Stock Categories under Inventory Info.
4.2.1 Creating a Godown
Go to the Gateway of Tally > Inventory Info. > Godowns > Create.
i. Create a Godown – Bangalore under Primary.
Ensure that the screen is displayed as shown below:

Figure 4.5 Godown Creation — Bangalore

 Press Y or Enter to accept the screen.

Godowns have a main location, by default because of which the options

Display and Alter are functional even before you create a godown.

Similarly create the godown – Mumbai under Primary.

4.3 Units of Measure
Stock Items are mainly purchased and sold on the basis of quantity. The quantity inturn is measured by
units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be
simple or compound. Examples of simple units are: nos., metres, kilo- grams, pieces etc. Examples for
compound units are: a box of 10 pieces etc. Create the Units of Measure before creating the Stock Items.
4.3.1 Creating Units of Measure

40 | P a g e
Go to the Gateway of Tally > Inventory Info. > Units of Measure > Create. The
Unit Creation Screen appears as shown below:

Figure 4.6 Units of Measure Creation screen

Type
Tally.ERP 9 has the option to create simple units as well as compound units. Examples: box, nos, pcs, etc.
A Compound Unit is a combination of two simple units of measure. Example: A box of 10 pcs is a
compound unit of measure.
Symbol
It is the abbreviated form by which a stock item is identified. For example, the abbreviation pcs indicates –
pieces.
Formal Name
This represents the complete or formal name of a symbol used while creating a unit. Different companies
use different symbols to represent the same units. Formal names help you to match the symbols with their
respective units. For example, the symbol for numbers (formal name) can be nos or num.
Number of Decimal Places
A unit can be expressed as fractions. For example, a 3.15 Kg refers to 3Kg and 150 grams. The number of
digits expressed in grams after the decimal places are three. Likewise, fractions up to four decimal places
can be expressed in the same manner. For expressing numbers, without a decimal place, specify 0 in this
option.
Let us create the unit Nos.
1. Type: Simple
2. Symbol: Nos
3. Formal Name: Numbers

41 | P a g e
 4. Number of Decimal Places: 0

The Unit Creation screen is displayed as shown below:

Figure 4.7 Units of Measure Creation — Nos

5. Press Y or Enter to accept the screen.

4.4 Stock Items

Stock items are goods that you manufacture or trade (sell and purchase). It is the primary inventory entity.
Stock Items in the Inventory transactions are similar to ledgers being used in accounting transactions.
Therefore, Stock Items are important in an inventory just as ledgers are important in accounting.
4.4.1 Creating a Stock Item
Go to Gateway of Tally > Inventory Info. > Stock Items > Create.

The Stock Item Creation Screen appears as shown below:

42 | P a g e
 Figure 4.8 Stock Item Creation screen

Enter the following details:

Name: The name of the stock item.
Under: The stock group under which you want to classify the stock item.
Category: The stock category you want to classify the stock item for parallel classification.
Units: The unit of measure for the stock item being created.
Rate of Duty: Enter the rate of duty charged on the item.
Opening Balance: The opening balance of a stock item, refers to the stock available with us. Godowns
that have already been created, must have the opening balance quantity and the location specified.
i. Create a Stock Item Sony 29 inches TV, under the Group Sony TV.
Ensure that the details appear as shown below:

43 | P a g e
 Figure 4.9 Stock Item Creation — Sony 29 inches TV
Press Y or Enter to accept the screen.
Practice Exercise
Similarly, create the following Stock Items under Televisions

Name Under Category Units

Sony 25 inches TV Sony TV 25 inches TV Nos
Philips 29 inches TV Philips TV 29 inches TV Nos
Philips 25 inches TV Philips TV 25 inches TV Nos
Videocon 29 inches TV Videocon TV 29 inches TV Nos
Videocon 25 inches TV Videocon TV 25 inches TV Nos

44 | P a g e
Similarly, create the following Stock Items under Music Systems.

Name Under Category Units

Sony Tape - Recorder Sony Music Systems Not Nos
Applicable
Sony CD - Player Sony Music Systems Not Nos
Applicable
Videocon Tape - Recorder Videocon Music Systems Not Nos
Applicable
Videocon CD - Player Videocon Music Systems Not Nos
Applicable

4.5 Creating Inventory Masters for National Traders

Before you start to create the inventory data for National Traders, there are some important functions of
housekeeping that are to be taken care of.
 Make sure your screen displays the main menu of the Gateway of Tally and ensure that only
National Traders is loaded.
 Set Tally.ERP 9’s Current Date to April 1, 2009 – select F2: Date at the Gateway of Tally.
 You also need to check whether the following features in Tally.ERP 9 are enabled for this module
i. In the F11: Features (F2: Inventory Features) set Yes to:
 Maintain Stock Categories
 Maintain Multiple Godowns
ii. In the F12: Configure > Accts/Inventory Info. set Yes to:
 Allow ALIASES along with Names
 Allow Language ALIASES along with Names
 Allow ADVANCED entries in Masters (Accounts)
 Use ADDRESSES for Ledger Accounts
 Use CONTACT DETAILS for Ledger Accounts
 Allow ADVANCED entries in Masters (Inventory)
 Allow Std. Rates for Stock Items
Let us now use Tally.ERP 9 to set up the basic inventory details for National Traders that sells computers,
Printers and Peripherals. Create the stock groups and sub-groups as shown:

45 | P a g e
 Stock Group Under
Computers Primary
Printers Primary
Peripherals Primary
Accessories Peripherals
Components Peripherals

46 | P a g e
4.5.1 Create Stock Groups
You will now set up the stock groups using both the single and multiple create options.
i. Creating single stock groups
Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create. Create a
Stock Group - Computers
1. Name: Computers
2. Aliases: Skip the field
3. Under: Primary
4. Can quantities of items be ADDED?: Yes

Figure 4.10 Stock Group Creation — Systems

The field Can quantities of items be added? in the stock group creation
screen pertains to information on measuring the units of the Stock Items
that have been categorised 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.

5. Press Y or Enter to accept the screen. Similarly,

create the following Stock Groups
.

Name Under Can Quantities of

items be ADDED
Peripherals Primary Yes
Printers Primary No

47 | P a g e
 ii. Creating Multiple Stock Groups
Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create.
Create Accessories and Components under Peripherals.
Ensure that the Multi Stock Group Creation screen is displayed as shown below:

Figure 4.11 Multiple Sock Group Creation

 Press Y or Enter to accept the screen.

4.5.2 Displaying and Altering Stock Groups

Once created, stock groups can be displayed and altered in both the single and multiple mode. You can
delete a stock group by using the option Alter under the Single Stock Group by pressing Alt+D.
However, you cannot delete a stock group with sub-groups or stock items. The lower levels must be
deleted first.

48 | P a g e
 Creating Single Stock Categories
Go to the Gateway of Tally > Inventory Info. > Stock Categories > Create.

Name Under
National Primary
4.5.3 Creating Multiple Stock Categories
Go to the Gateway of Tally > Inventory Info. > Stock Categories > Create.

Under Category Name of Category

Primary HCL
Primary IBM
Primary HP
Primary Samsung

4.5.4 Displaying and Altering Stock Categories

Once created, stock categories can be displayed and altered in single and multiple mode. You can delete a
stock category via Single Stock Category > Alter by pressing Alt+D. However, you cannot delete a
stock category with sub-categories. The lower levels must be deleted first.
4.5.5 Creating Units of Measure
Go to the Gateway of Tally > Inventory Info. > Units of Measure > Create.

Type Symbol Formal Name Number of Deci-

mal Places
Simple Nos Number Of 0
Simple Box Boxes 0

4.5.6 zCreating Compound Units of Measure

Go to the Gateway of Tally > Inventory Info. > Units of Measure > Create.
1. Type: Compound (press Backspace)
2. First Unit: Select Box

49 | P a g e
 3. Conversion: Type 100
4. Second Unit: Select Nos

Figure 4.12 Compound Units of Measure Creation

5. Press Y or Enter to accept the screen.
4.5.7 Displaying and Altering Units of Measure
Once created, the units of measure can be displayed and altered. You can delete a unit of measure in the
alteration screen by pressing Alt+D. However, you cannot delete a unit of measure that is part of a
compound measure. The compound measure must be deleted first.
4.5.8 Creating Godowns
Ensure that Maintain Multiple Godowns is set to Yes in the F11: Features (F2: Inventory Fea- tures).
The concept of Godowns is essentially to store the inventory and can be used as a location, warehouse,
department, sub-contractor locations etc. Tally.ERP 9 permits any number of godowns that can be
grouped and sub-grouped to match the structure you need.
To Create a Godown, go to the Gateway of Tally > Inventory Info. > Godowns > Create.
1. Name: Warehouse
2. alias: Skip the field
3. Under: Primary
4. Allow Storage of materials: Yes

Similarly, create On-Site as Godown under Primary.

1. Name: On - Site
2. alias: Skip the field
3. Under: Primary
4. Allow Storage of materials: Yes

50 | P a g e
 4.5.9 Displaying and Altering Stock Godowns
Once created stock Godowns can be displayed and altered in single and multiple mode. Go to the
Gateway of Tally > Inventory Info. > Godowns > Alter.
You can delete a stock Godown via Single Godown > Alter by pressing Alt+D. However, you cannot
delete a stock Godown with sub-godowns. The lower levels must be deleted first.
Create Stock Items
Go to the Gateway of Tally > Inventory Info. > Stock items > Create.
Create the stock items as on 1-4-2009, with the information provided below:

Stock Cost Ware On Total Total Retail

- - Qty Value Price
house Site
COMPUTERS
HCL PIV 17,500 1 4 5 Nos 87,500 21,500
IBM PIV 17,100 0 4 4 Nos 68,400 24,785
PERIPHERALS
Accessories
CD ROM Disks 100s 450 0 5 5 Box 2,250 500
Dust Covers 35 2 8 10 Nos 350 40
USB Pen Drives 64MB 1,250 0 10 10 Nos 12,500 1,600
Wireless Keyboard 490 10 15 25 Nos 12,250 700
Wireless Mouse 250 10 10 20 Nos 5,000 430
Printers
HP Laserjet 1010 Series 8,200 0 7 7 Nos 57,400 9,500
Samsung Laserjet 1500 8,100 0 5 5 Nos 40,500 9,850
Total 2,86,150

Ensure that Allow ADVANCED entries in Masters is set to Yes in the F12: Stock Item Configu- ration.
Create the stock item HCL PIV with the following details:
1. Name: HCL PIV
2. alias: Skip this field
3. Under: Computers

51 | P a g e
4. Category: HCL
5. Units: Nos
6. Alter Standard Rates?: Yes
7. Enter the details in the Standard Rate screen as shown below:

52 | P a g e
 Figure 4.13 Standard Rate screen for Stock Item —
HCL PIV
8. Enter other details as given in the table:

Rate Of Duty 0
Cost Method Avg Cost
Market Valuation Method Last Sale Price
Ignore Diff due to Physical Counting? No
Ignore Negative Balances? No
Treat all Sales as New Manufacture? No
Treat all Purchases as consumed? No
Treat all Rejection Inward as scrap? No
Opening Balance: Quantity 5 Nos
Opening Balance: Rate 17,500
9. Allocate the items as shown below:

53 | P a g e
 Figure 4.14 Allocation of: HCL PIV
10. The Stock Item Creation screen for HCL PIV appears as shown below:

54 | P a g e
Explanation for Behaviour
 Costing Method: This is the method by which stocks are valued. The value arrived at will be
the stock value in the books. This method considers Purchase costs only.
 Market Valuation Method: This method considers the Sale price only for the valuation of
stocks. The method selected, is not however, used for standard reporting.
 Ignore Diff. due to Physical Counting?: This requires you to enter information on whether
Tally.ERP 9 should automatically account for stock difference by passing an appropriate entry
or not.
 Ignore Negative Balances?: This requires you to enter information on whether Tally.ERP 9
should warn you if there is a negative balance. This however does not prevent you from
entering vouchers.
 Treat all Sales as New Manufacture?: This requires you to enter information on whether on
entering a sale voucher, the item will automatically be manufactured and brought in stock.
 Treat all Purchases as Consumed?: This requires you to enter information on whether on
entering a purchase, the item is automatically issued from stock.
 Treat all Rejections inward as Scrap?: This requires you to enter information on whether the
goods rejected and taken into stock should be shown as issued and hence valued nil.

Similarly, Create other Stock Items.

Once you have entered all the stock items, return to the main Gateway of Tally menu and select the
Stock Summary. This should show a grand total of 2,86,150, the break-up of which is, Computers -
Rs. 1,55,900, Peripherals - Rs. 32,350, Printers - 97,900 = Rs. 2,86,150.
Ensure that the Stock Summary appears as shown :

55 | P a g e
 Figure 4.16 Stock Summary from April 1, 2009 to May 1, 2009

Inventory Reports:-

Tally generaes ERP 9 reorts based on the vuchers entered till date. The user can utilise the customised
reports to compare inentory data between different companies ,different periods of the financial year,and so
on.
The reprts is avable as ‘Display’ option in the gate way of Tally. The special features available for the
currently displayed report are indicate on the button bar can be selected with a single click of mouse. The
following are the various kinds of inventory reports.

1. Stock summary:- Selecting this item, Tally displays the list of groups pop-up menu for this menu.
The user can select a stock group to bring up its stock summary report.
2. Godowns:-Selecting this item ,Tally displays the list of Godown pop-up menu. This bring up the
godown summary screen for the selec ted godown showing quantity,rate and value details for various
stock groups.
3. Categories: -selecting this item, Tally displays the list of catogories pop-up-menu. The user can
select a particular category to view its stock ite details. This brings up the stock categories summary
screen.
4. Stock Query:- The stock query report is a real time tool,which healps to negotiate orers.All details
required for purchase and sales orders are displayed.

56 | P a g e
5. Cost estimation:- This report gives information relating to compnents used in the manufacturer of an
item and their quantity and rate displayed based on information given in the bil of materials.
6. Movement analysis:- selecting this item,Tally ERP 9 displays the movement Analysis sub menu.
Movement analysis gives reports of inward and outward movement of stock item with respect to
purchase and sales respectively. Movement analyis can be made for stock groiups,
catageries,tems,accounting groups, etc.

a) Stock group analysis:- This report can be used to select any particular stock group for making
movement analysis, from the List f Groups pop-menu. This brings up the Movement Analysis
screen for the selected group, giving details of Inward and Outward movements of items falling
under that group. It also gives details of quantity, effective rate and value for stock movements.
b) Category Analysis: This report shows movement analysis of stock items based on the category
under when they are classified.
c) Stock Item Analysis: This report displays the party-wise inward and outward movement of the
selected stock items.
d) Group Analysis: This report displays movement analysis for stock items based on accounting
groups.
e) Ledger Analysis: This report displays movement analysis for stock items based on sccounting
ledgers.
f) Transfer Analysis: Selecting this report, the user gets a pop-up menu titled List of Voucher
Types, from which the user can select either the normal stock journal or the manufacturing
journal.

List of shortcut keys for the usage of Inventory master:

S. No Key Functionality
1 F11 -> F2 To activate the Inventory Features
2 Alt + D To delete the stock group / categories / items /
godowns / units
3 Ctrl + G To create a Stock Group
4 Ctrl + I To create a Stock Item
5 Ctrl + O To create a Stock Godown
6 Ctrl + U To create a Unit of Measure

UNIT – III: Recording Day to Day Transactions in ERP:

57 | P a g e
 A 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.
Mainly there are two types of Voucher Entry:
Accounting Vouchers
Inventory Vouchers

You can set the configuration for entry to allow only those features, which you require while
entering vouchers.
In the Voucher entry configuration, Selectively set only those features to Yes. (This is further
explained under advanced usage).

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

VOUCHER CREATION SCREEN

This screen is divided into three parts

Main Voucher Entry Area
Button Bar Area
Calculator Area

58 | P a g e
 Main Voucher Area

Button

Toolbar calculator Area

Area

Contra Voucher(F4): As per the accounting rules, any transaction involving transfer of funds
from cash account to bank account or bank account to cash account or between bank accounts, is
referred to as ‘Contra’ transaction.
Creation: A Contra Voucher can be created in the following steps:
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press F4
Step :4 Contra voucher screen is displayed.
Step :5 From the voucher screen, use the F12 : Configuration key and set all options to No.
The figure shows the created contra voucher.

59 | P a g e
Payment Voucher (F5): All transactions related to payments (either by cash or through bank)
are recorded using the ‘Payment’ voucher.
Creation:
The steps for creating payment voucher are as follows:
Step :1 Go to Gateway of Tally
Step :2 Select Accounting Vouchers
Step :3 Press F5
Step :4 Payment voucher screen is displayed.
The figure shows the created contra voucher.

1. Here, Dr is displayed by default for the first ledger. This cannot be changed.

60 | P a g e
 2. In the payment voucher, atleast one ledger account falling under the group ‘ Cash-in-hand’ or
‘Bank accounts’ or ‘Bank OD’ must be credited.
3. If in F12: Configuration relating to Voucher Entry, the user has set the option Use Single Entry
Mode for Pymt/Rcpt/Contra ? to ‘Yes’. Tally will automatically credit the cash or bank account
with the total amount.
4. Cheque Printing: Immediately on entering a payment voucher involving bank accounts, Tally
can print cheques for making the payment.
Receipt Voucher (F6): All transactions relating to receipts ( either in cash or though bank ) are
recorded using ‘Receipt’ voucher. This voucher is similar to the ‘Payment’ voucher, except that, here
the user debits cash or bank accounts and credits other ledger accounts.
Creation:
The user can create a receipt voucher with the below procedures:
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press F6
Step :4 Receipt voucher screen is displayed.
The figure shows the created receipt voucher.

1.Here,cr is displayed by default for the first ledger. This can be changed.
2.In the receipt voucher, atleast one ledger account falling under the group Cash-in-hand or bank
accounts or bank ‘OD’ must be debited.
3.Money Receipt printing:- On entering a receipt voucher, the user can print a ‘Formal Receipt’
for the voucher entered.
Journal Voucher (F7)

61 | P a g e
Journal vouchers are usually used for passing adjustment entries. They are used to record non-cash
transactions like provision for depreciation, provision for bad debts, incomes receivable, expenses
payable, etc., and to pass rectification entries.
Creation
The following steps explain the way of creating a journal voucher.
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press F7
Step :4 Journal voucher screen is displayed.
The figure shows the created journal voucher.

1. Here, Dr is displayed by default. This cannot be changed. After entering the ledger account to
be debited and specifying its amount, the cursor moves to Dr / Cr field in the next line. Here,
the ‘Dr’ or ‘Cr’ can be changed, as required.
2. In a journal voucher, any account can be debited and any account can be credited. However,
normally ledgers falling under the group ‘Cash- in-hand’ or ‘Bank accounts’ cannot be
selected in journal voucher.
Sales Voucher (F8):
Sales vouchers are used for recording all sales transactions (whether it is cash sales or credit
sales). Even for cash sales, use the sales voucher can be used since, the transaction will be
recorded both in ledger accounts as well as in the Sales Register.
Sales Register is a register, which gives a summary of all sales transactions. If cash sales
transaction is recorded using ‘Receipt’ voucher, it will not be reflected in the ‘Sales Register’.
Creation
Sales voucher can be created by the following steps:
Step :1 Go to Gateway of Tally

62 | P a g e
Step :2 Choose Accounting Vouchers
Step :3 Press F8
Step :4 Sales voucher screen is displayed.
The figure shows the created Sales voucher.

1. Reference No: This field will appear only for certain voucher types such as ‘Sales’, ‘Credit
Note’, ‘Purchase’ and ‘Debit note. In this field, the user can enter the reference number of the
base document such as the sales invoice number, credit note number etc.,
2. First Entry: In the sales voucher, the first entry must be a debit entry, involving either as
sundry debtor or cash or bank account.
3. Second Entry: The second entry should be a credit entry, for sales ledger accounts appearing
under the group ‘Sales Accounts’.
Credit Note Voucher (CTRL + F8)
Credit Note Voucher is used to give credit to a customer in the following cases:
a) When goods sold to the customer are returned (sales returns).
b) When credit is given to the customer for different in rate, discount, rebate etc.,
Credit Note Vouchers can be activated from ‘F11 : Features’. From the Gateway of Tally -> use
the F11 : Features key to bring up the Company Features submenu -> select Accounting Features -
> and set the option Use Debit/Credit Notes ? under invoicing to Yes.
Creation
The steps for creation of credit note voucher are given below:
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press Ctrl + F8
Step :4 Credit Note voucher screen is displayed.
The figure shows the created Credit Note voucher.

63 | P a g e
1. Purpose: In the Credit Note, the user can specify the purpose for which credit is given to the
party.
2. First Entry: The first entry must be a credit entry, involving a debtor.
3. Second Entry: The second entry should usually be a debit entry, involving under ‘Sales’.
4. Credit Note Register: Credit Note Voucher entries are recorded in a separate register called
Credit Note Register. To view the ‘Credit Note Register’, from Gateway of Tally -> Select
Display -> Select Account Books -> Select Journal Register -> and select Credit Note
Register.
Purchase Voucher (F9):
Purchase vouchers are used for recording all purchase transactions (whether it is cash purchase or
credit purchase). Even for cash purchase, use the purchase voucher since, the transaction will be
recorded both in the ledger account as well as in the Purchase Register.
The Purchase Register is a register which gives a summary of all purchase transactions. If cash
purchase transactions is recorded using ‘Payment’ voucher, it will not be reflected in the Purchase
Register.
Creation
The following steps explain the creation of purchase voucher:
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press F9
Step :4 Purchase voucher screen is displayed.
The figure shows the created Purchase voucher.

64 | P a g e
1. Ref: This field will appear only for certain voucher types such as ‘Purchase’ and ‘Debit Note’,
‘Sales’ and ‘Credit Note’. In this field, the user can enter the reference number of the base
document such as the purchase invoice number, debit note number etc.,
2. First Entry: The first entry must be a credit entry, involving either a creditor ledger account
or cash or bank account.
3. Second entry: The second entry should be a debit entry for purchase ledger accounts,
appearing under the group ‘Purchase Accounts’.
Debit Note Purchase:
Debit Note voucher is used to debit a party’s account in the following cases:
1. When goods purchased from the supplier are returned ( purchase returns).
2. When credit is given by a supplier for difference in rate, discount, rebate etc.,
3. When a customer account has to be debited for short billing.
Debit note vouchers can be activated from F11: Features. From the Gateway of Tally -> use
the F11: Features key to bring up the Company Features submenu -> select Accounting
Features -> and set the option Use Debit/Credit Note ? under Invoicing to Yes.
Creation
Debit Note voucher can be created with the following necessary ways:
Step :1 Go to Gateway of Tally
Step :2 Choose Accounting Vouchers
Step :3 Press Ctrl + F9
Step :4 Debit Note voucher screen is displayed.
The figure shows the created Debit Note voucher.

65 | P a g e
1. First Entry: The first entry must be a debit entry, involving a creditor or debtor or branch or
cash or bank account.
2. Second entry: The second entry should usually be a credit entry involving a ledger under
‘Purchases’.
3. Debit Note Register: Debit Note voucher entries are recorded in a separate register called
Debit Note Register. To vies the ‘Debit Note Register’, From Gateway of Tally -> Select
Display -> Select ‘Account Books’ Select Journal Register -> and finally select Debit Note
Register.

Unit Iv: Accounts Receivable And Payable Management

66 | P a g e
Bills Receivable and Bills Payable
A bill of exchange can be either bills receivable or bills payable. When a drawee accepts a bill and sends
it back to the drawer, it becomes a bills receivable to the drawer as money is receivable on the bill.
Therefore, it becomes an asset to him. On the other hand, it becomes a bills payable to the drawee if
money is payable by him on the bill, in which case it is a liability for him.
The drawer can make use of the bill in one of the following ways:
1. Retain the bill till the date of maturity and collect the money from the drawee.
2. Endorse the bill to his creditor.
3. Discount the bill with the banker.
4. Send the bill to the banker for collection.
Displaying Receivable
Bills receivable is a bill of exchange on which payment is expected to be received at a later date.
Bills receivable report in Tally.ERP 9 displays all the outstanding receivables during a specified period.
To view the Receivables screen
● Go to Gateway of Tally > Display > Statements of
Accounts > Outstandings > Receivables . The Bills Receivable screen is displayed as shown
below:

This report displays all outstanding receivables invoice-by-invoice, till date. This report takes into
consideration only those party ledgers for which the option Maintain balances Bill-by-Bill option is
enabled.
● Date : This is the Effective date of the invoice and not the actual date. Hence, if your invoice date
is 15th November but the effective date is 30th November, and then 30th November will be
displayed here. Credit period is calculated from the effective date.
● Reference Number : This is the bill reference number entered in the Bill-wise Details screen.
67 | P a g e
 ● Party's Name : The party ledger name appears in this field.
● Pending Amount : This is the outstanding balance on a particular invoice. To see the breakup,
press Shift + Enter. To view the complete breakup of all the bills, press the F1 :
Detailed button. This view toggles with the button F1 : Condensed.
● Due On : This is the due date of the bill (with reference to the Effective date) specified during
voucher entry.
Button options in Bills Receivables report
● F1 : Detailed: Click F1 : Detailed button or press Alt+F1 key to display details such as Voucher
Date , Voucher Type(s) , Voucher Number(s) , and Amount of each voucher.
● F2: Period: Click F2: Period button or press F2 key to change the period.
● F4: Payable: Click F4: Payable button or press F4 key to display the Bills Payable report.
● F6: Age wise: Click F6: Age wise button or press F6 key to display the Age wise analysis of the
Bills Receivable report. For more information, refer Ageing Analysisreport.
● F7 : Bill-Party wise: Click F7 : Bill-Party wise button or press Alt+F7 key to display the party-
wise breakup of the Bills Receivable report. For more information, refer Bill-Party wise report.
● F12: Configure : The F12: Configuration screen for Bills Outstanding report is displayed as
shown below:

For complete information on F12: Configuration , click here .

● F12 : Range: Click F12 :Range or press Alt+F12 to use the Range Filter option to search for
specific bills from the list of bills outstanding. Users may filter the transactions based on
the Date , Original Amount , Pending Amount , Ledger , Reference number and so on, as shown
below:

68 | P a g e
This is a useful tool, as it makes the process of finding specific bills fast, easy and simple.
● R : Remove Line : Click R : Remove Line button or press Alt+ R key to remove a line item
from the Bills Outstandings report.
Payables
Bills payable is a bill of exchange due for payment at a future date.
Bills payable report in Tally.ERP 9 displays all the outstanding payables during a specified period.
To view the Bills Payable screen
● Go to Gateway of Tally > Display > Statements of Accounts > Outstandings > Payables .

. Bill-Party wise Outstandings Report

This report displays the party-wise details of all the bills during a specified period. Bill-Party wise
outstandings report can be viewed from Bills Receivables , Bills Payables andGroup
Outstandings reports.
Bill-Party wise report for Bills Receivable /Payable
Let us consider the Bills Receivable report as an example.

69 | P a g e
To view the Bill- Party wise Receivables Report
1. Go to Gateway of Tally > Display > Statements of accounts > Outstandings > Receivables
2. Click the button F7 : Bill-Party wise button or press Alt+F7 . The Bill-Party wise receivables report
appears as shown below:

In this report, the list of all bills receivable for every party is displayed.
In the above screen, for the party Bellary Municipality, five reference numbers with the total amount
to be received, the due date and the number of days the amount is due is displayed.
Pressing Enter will display the details of the vouchers recorded against a particular reference
number.

The button options for this report are similar to that of Bills Receivable report other than the F12
Configurations .

70 | P a g e
 o Include Post-Dated Transactions: Post-dated transactions are those with voucher dates
beyond the end date of the period of display.
On setting this option to Yes, the amount of post dated transactions will be listed in the Post-
Dated Amount column.
o Show Bills in Foreign Exchange: If this option is set to Yes , the Bills Outstanding report will
show only those bills raised in foreign currency. The bills raised in base currency will be
excluded.
o Show Opening Amount: If this option is set to Yes , the Bills Outstanding report will show
the opening balance amount column.
o Show overdue using Bill Date: On setting this option to Yes , the invoice date will be
considered for calculation of overdue days, instead of due date.
Here, due date refers to the date mentioned in the Bill-wise details screen.
Note: While calculating the overdue, the outstanding days (Age of Bills in Days) are calculated from
the due date to the end date of report. If you use Bill date for calculating Overdue, then the
credit days are ignored and delay days are calculated from the bill date to the end date of
report.
o Range of Bills to show : By default, the Bills Outstanding report will display only
the Pending bills. Select Overdue Bills in the field Range of Bills to show to view only the
overdue bills for a definite period.
Note:
Based on the selection of range of bills, the report for all Pending or Overdue bills as on date
specified for the Report can be viewed.
1. Pending Bills : This will display the bills which are pending as on a particular date.
2. Overdue Bills : This will display the bills which are not paid or due beyond their credit
period or days.
o Show Qty info in Detailed Format? Set this option to Yes to display the item quantity details
for each transaction.
o Appearance of Names: Select the required option from the list to view the party ledger names
as per the name style chosen i.e., Name only , Alias only , Name (Alias) or Alias (Name) .
o Party Sorting Method: Select either of the sorting methods Party (Decreasing) or Party
(Increasing) to sort the report based on ascending or descending order of the party ledger
name.

71 | P a g e
 o Bill Sorting Method : Select one of the sorting methods from the list to sort the report based
on Amount (Decreasing or Increasing), Currency (Decreasing or Increasing), Date
(Decreasing or Increasing), Due Date (Decreasing or Increasing) and Ref No.
(Decreasing or Increasing) .

Note: The Bill-Party wise report for Bills Payable is similar to that of Bills Receivable .
Bill-Party wise report for Group Outstandings
To view the Bill- Party wise report for Group Outstandings
1. Go to Gateway of Tally > Display > Statements of accounts > Outstandings > Group .
2. Click the button F7 : Bill-Party wise or press Alt+F7 . The Bill-Party wise report for Group
Outstandings appears as shown below:

72 | P a g e
 The button options for this report are similar to that of Group Outstandings report except for F12:
Configurations .
For information on F12 Configurations , click here .
Age wise Analysis in Bill-Party wise Outstandings report
For Age wise analysis of bills receivable - party wise,
● Press F6 or click F6: Age wise
● Select Ageing by Bill Date or Ageing by Due Date as per requirement
● Specify the period for which this report is viewed

The bill-party wise receivables report appears with the applied ageing method.

73 | P a g e
Types of References:
In the Bill-wise details screen, there are four types of references. Each reference has its unique
feature. The types of references are:
1. New Reference
2. Against Reference
3. Advance
4. On Account
1. New Reference: This type is used to make any fresh credit purchase or sales transaction
without any advance. New reference is made in the purchase or sales voucher. The user can
select this option in the bill –wise details screen of purchase or sales voucher. A new reference
number is allotted when this option is selected.
2. Against Reference: This type is selected to make payment or receive amount against credit
purchase or sales bill. Against Reference is made in the Payment or Receipt Voucher. The user
can select this option in the Bill-wise details screen of payment or receipt voucher. This option
is used to adjust any amount against pending credit bills. List of pending bills from the
particular customer or supplier will be displayed in the bill-wise details screen. The user may
select the pending bill to be adjusted from the list of pending bills and enter the amount of
adjustment.
Therefore, this option is selected to set-off payments against the previously entered New
Reference.
3. Advance: This is selected when the seller receives or pays money in advance. Typically, when
bill is raised, a part of the bill is adjusted against the advance (using Against Reference) and
the balance amount is carried as New Reference while making the sale or purchase entry.

74 | P a g e
 In other words, this method is a type of adjustment when the customer pays advance before
delivery of goods.
4. On Account: This option is used when there are no clear cut instructions about the bill against
which the money should be adjusted. This method is an alternative method of adjustment when
there is no idea of bill-wise details.
Sometimes the list of pending bills is not available in the bill-wise details screen and also there
is outstanding balance in a customer account. In such circumstances, this ‘on account’
reference is employed.
Changing the Financial Year in ERP:
Financial Year starts on 1st April and ends on 31st March. The accounting practice is done
usually for one financial year. The financial year is otherwise known as Fiscal year. The
Financial Reports are also prepared for on financial yea. Therefore, once a financial year ends
on 31st March, then the next financial year which falls on 1sst April must be changed. This can
be easily made in Tally ERP9.
To change the period of financial year from current year to preceding years, the user has to
take the following steps:
Step1: Open an existing Company from the list of companies by choosing ‘Select Company’ in
the Company Info option (Alt+F3).
Step 2: Press Alt+F2 to change the period of the active company.
Step 3: In the Change Menu Period screen, enter the New Financial Year.
This operation is exhibited in the following Figure

Change Period Change Period

From: 1-4-2016 From: 1-4-2017

To: 31-3-2017 To: 31-3-2018

 Now the period is changed from 2016-17 to 2017-18.

List of Shortcut Keys for the usage of Accounts Receivables and Payables

The shortcut keys will assist the user to perform the operation quickly. The following table shows the
list of shortcut keys for the effective and easy usage of accounts receivables and payables. The
shortcut keys listed in this table are exclusively shows in the Accounts Receivable and Payables
screen.

Shortcut Keys for the usage of Accounts Receivables and Payables

S.No. Key Functionality

75 | P a g e
1 F11 To enable the Feature option
2 F1 To select Accounting Features
3 F4 To switch between bills receivable and payable report
4 Alt+F2 To change the period of a company

Unit:-5 MIS REPORTS

Management Information System refers to a system that collects and processes data and provides it
to managers at all levels, who use it for decision making, planning, program implementation and
control. An information system comprises of all the components that collect, manipulate and
disseminate data or information. It usually includes hardware, software, people, communication
system such as telephone lines, and the data itself.

Advantages:-

Management Information system provides business vendor the ability to collect process and interpret
data. Data sets can include nearly all aspects of business operations, including sales revenues,
production costs and inventory. Business vendors examine management information system data,
compare it to previous time frames and adjust their production strategies.

The following are the important advantages of MIS form the owners and managers point of view.

1. Information Provider: Management Information System provides relevant information to

management for facilitating planning and timely control.

76 | P a g e
2. Condensed Form: Data is available in summarized form which minimize information loading.
3. Performance Assessment: It is ease in measuring performance of the employees which helps in
encouraging decentralization in an organization.
4. Coordination: It improves coordination as all departments are aware of course of action or any
change in plan.
5. Speed: It enhances quick, cheap and efficient communication.
6. Above boundaries: It brings down linguistic, geographical and cultural boundaries. The
information is available at any time.
7. Time saving: Automation helps in saving time and papers.
8. Job Provider: MIS creates new types of jobs like computer programmer, system analyzer,
software and hardware developer etc.,

MIS Reports in Tally:

The ERP 9 is a most powerful business accounting software with basic Management Information
System in Tally ERP9. MIS reports are classified as follows.

1. Balance Sheet
2. Statement of Profit & Loss
3. Trial Balance
4. Display of Books of Accounts
5. Statement of Accounts
6. Ratio Analysis
7. Cash Flow Statement
8. Funds Flow Statement
9. Receipts and Payments.

1. Balance Sheet:
Balance Sheet is statement which will denote the financial position of a business concern. The
statement will have assets and liabilities such as current assets, fixed assets, fictitious assets and
current liabilities and long term liabilities and reserves, surplus and capital. In the Balance Sheet
the assets should be equal to the liabilities.

Path: Gateway of Tally -> Press B (B for Balance sheet)

77 | P a g e
2. Profit & Loss Account:
Profit & Loss account is a nominal account, by preparing the Profit & Loss account will get net
profit or net loss.
Path: Gateway of Tally -> Press P ( P for Profit & Loss account)

3. Trial Balance:
Trial balance is a statement. It will be prepared by the two methods.
1. Totals Method
2. Balances Method
Total Method: According to this method, all 1the debits of a journal will be recorded in debit
78 | P a g e
column of trial balance and all the credits will be recorded in credit column of trial balance.
Balances Method: In a ledger if the debits are more than the credits, it will be recorded in debit
column of trial balance. If the credits are more than the debits, it will be recorded in credit
column of trial balance.
Features:
1. Trial Balance debit shows expenses, losses and assets.
2. Trial balance credit shows incomes, gains and liabilities.
3. The trail balance can help us to prepare the final accounts easily.
4. The trial balance can give the arithmetical accuracy of accounts.
5. The closing stock will be shown outside of trial balance.
6. The trial balance debit column will be equal to the credit column.
7. If there is any difference between debit and credit column of trial balance will be transferred
to suspense account.
Path: Gateway of Tally -> Display -> Press T (T for Trial Balance)

4. Display of Books of Accounts:

Gateway of Tally -> select Display -> select Accounts books.
It will denotes cash book, various ledgers like purchases, sales and vouchers and other journal
registers.
5. Ratio Analysis:
A Ratio is an arithmetical expression between two variables eg: If A,B are two variables, it will
denotes the relationship between A,B is A:B or A/B.
Path: Gateway of Tally -> Press R (R for Ratios)

79 | P a g e
 6. Funds Flow Statement
A Funds flow Statement shows changes in the financial position of the entity for a period. The
difference between this statement and cash flow statement is that, a funds flow statement into
account the changes in current assets and current liabilities for a period where as cash flow
statement movement of cash only in the organization for a particular period.
Funds flow statement shows the sources of funds application of funds.

A Fund Flow statement is a report, which explains the movement of funds during an accounting period.
This statement consists of two parts
● Sources of funds
● Application of funds
The difference between the two shows the net change in the working capital during the period. Only
those transactions that affect the net working capital of the firm, find place in this statement.
The Fund Flow statement is a supplement to the two principal financial statements. While supplementing
the position statement, it describes the sources from which additional fund were derived and for which
these funds were used. The transactions, which increase working capital, are sources of funds and the
transactions, which decrease working capital, are application of funds.
To view Funds Flow
1. Go to Gateway of Tally > Display > Cash/Funds Flow > Funds Flow
2. Press ALT+F2, change period - From: 1-04-2008 to 31-8-2008. The funds flow statement is
displayed as shown below:

80 | P a g e
 3. A Monthly Funds Flow Summary with the movement of working capital for each month is displayed.
It shows the Opening and Closing Balances of each month with a column for Funds Flow.
4. Select a month and press Enter to drill down.
5. Select F1: Detailed to see the funds flow for the selected month.

7. Cash flow statement:

Cash Flow is the inflow and outflow of cash during an accounting period.
A cash flow statement concentrates on the transactions that have a direct impact on cash. It deals with the
inflow and outflow of cash between two Balance Sheet dates. That is, it explains the changes in cash
position between the two periods. Here the term cash stands for cash and bank balances.
Cash flow statements can also be used as receipts and payments statement. This is particularly useful for
businesses such as Non Profit Organizations where receipts and payments statements need to be
generated.
To view Cash Flow
1. Go to Gateway of Tally > Display > Cash/Funds Flow > Cash Flow .
2. Press Alt+F2, change the period - From: 1-4-2008 to 30-9-2008. The Cash flow statement is
displayed as shown:

81 | P a g e
For Quarterly Cash Flow
● Change Period by pressing F2: Period and set the period, e.g., 1-4-08 to 30-06-2008.
● Select the option Auto Column from the button bar.
● You can also select Quarterly (or Monthly or any other period) from the list
The Cash Flow screen appears as shown below:

8. Receipts & payments:

Bills Receivable and Bills Payable
A bill of exchange can be either bills receivable or bills payable. When a drawee accepts a bill and sends
it back to the drawer, it becomes a bills receivable to the drawer as money is receivable on the bill.
Therefore, it becomes an asset to him. On the other hand, it becomes a bills payable to the drawee if
money is payable by him on the bill, in which case it is a liability for him.
The drawer can make use of the bill in one of the following ways:
1. Retain the bill till the date of maturity and collect the money from the drawee.
2. Endorse the bill to his creditor.
3. Discount the bill with the banker.
4. Send the bill to the banker for collection.
Displaying Receivable
Bills receivable is a bill of exchange on which payment is expected to be received at a later date.
Bills receivable report in Tally.ERP 9 displays all the outstanding receivables during a specified period.
To view the Receivables screen
● Go to Gateway of Tally > Display > Statements of
Accounts > Outstandings > Receivables . The Bills Receivable screen is displayed as shown
below:

82 | P a g e
This report displays all outstanding receivables invoice-by-invoice, till date. This report takes into
consideration only those party ledgers for which the option Maintain balances Bill-by-Bill option is
enabled.
● Date : This is the Effective date of the invoice and not the actual date. Hence, if your invoice date
is 15th November but the effective date is 30th November, and then 30th November will be
displayed here. Credit period is calculated from the effective date.
● Reference Number : This is the bill reference number entered in the Bill-wise Details screen.
● Party's Name : The party ledger name appears in this field.
● Pending Amount : This is the outstanding balance on a particular invoice. To see the breakup,
press Shift + Enter. To view the complete breakup of all the bills, press the F1 :
Detailed button. This view toggles with the button F1 : Condensed.
● Due On : This is the due date of the bill (with reference to the Effective date) specified during
voucher entry.
Button options in Bills Receivables report
● F1 : Detailed: Click F1 : Detailed button or press Alt+F1 key to display details such as Voucher
Date , Voucher Type(s) , Voucher Number(s) , and Amount of each voucher.
● F2: Period: Click F2: Period button or press F2 key to change the period.
● F4: Payable: Click F4: Payable button or press F4 key to display the Bills Payable report.
● F6: Age wise: Click F6: Age wise button or press F6 key to display the Age wise analysis of the
Bills Receivable report. For more information, refer Ageing Analysisreport.
● F7 : Bill-Party wise: Click F7 : Bill-Party wise button or press Alt+F7 key to display the party-
wise breakup of the Bills Receivable report. For more information, referBill-Party wise report.
● F12: Configure : The F12: Configuration screen for Bills Outstanding report is displayed as
shown below:

83 | P a g e
For complete information on F12: Configuration , click here .
● F12 : Range: Click F12 :Range or press Alt+F12 to use the Range Filter option to search for
specific bills from the list of bills outstanding. Users may filter the transactions based on
the Date , Original Amount , Pending Amount , Ledger , Reference number and so on, as shown
below:

This is a useful tool, as it makes the process of finding specific bills fast, easy and simple.
● R : Remove Line : Click R : Remove Line button or press Alt+ R key to remove a line item
from the Bills Outstandings report.
Bills payable is a bill of exchange due for payment at a future date.
Bills payable report in Tally.ERP 9 displays all the outstanding payables during a specified period.
To view the Bills Payable screen
● Go to Gateway of Tally > Display > Statements of Accounts > Outstandings > Payables .

84 | P a g e
Shortcut keys for MIS reports:

S.No Key Functionality

1 Alt + F1 To show the detailed content and also condensed content of a report
screen
2 F2 To change period of report for a particular date.
3 F3 To change the company on which the report is required.
4 F4 To prepare the books of accounts in group wise classification.
5 F5 To enable the books of accounts in group wise classification.
6 F7 To value the closing stock of the company.
7 F8 To bring in the group payment performance report for the selected
groups.
8 Alt+F2 To view the required information only in cash/funds flow
9 Alt+S To switch to the revised schedule of companies act 2013.

85 | P a g e