Chapter

Introduction Tally 9.0

Tally Solutions has released a new version of its Tally 9 software. It is most
popular software for accounts and inventory management. It offers different feature for
maintaining accounts. Tally 9 is integrated with a lot of advanced feature like better data
migrating, fast data speed, payroll management, TDS, TCS, job costing and point- of sale
invoicing etc.

Tally 9, a synchronized multilingual integrated business accounting software,

enables to maintain accounts in any Indian language, view it in other and print it in yet other
language of their choice. Targeted at SMBs, Tally 9 offers greater reliability, scalability,
accuracy and speed. It supports Unicode data which helps companies maintain data in any of the
Unicode supported languages.

Tally 9 program also has features including tax compliance features for value
added tax (VAT), service tax and excise for traders.

FEATURES IN TALLY 9
1. Easy calculation of TDS (Tax Deducted at Source)

Using Tally 9 you can calculate TDS appropriately.

2. Negative Stock Warning in Journal Voucher

Create a stock item with an opening balance of considerable units and pass a
delivery note against it. using a Journal Voucher to record a sales transaction tracking the
delivery note would display a warning message of negative stock even through a considerable
amount of stock was left over. The same has been addressed appropriately in Journal voucher.

3. Performance in Networking Environment

Tally 9 can work efficiently in a networking environment, if the Server has

Windows XP and Clients have Windows 98 as the operating system, Tally performs efficiently
with improved data stability.

4. Interest calculation in Forex

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 A Sales transaction created using Forex currency and Interest calculation,
calculates the Outstanding Forex Interest accurately.

5. Ledger Account

Tally now prints the address of the Sundry Debtor/ Creditor ledgers, while printing
a ledger account.

6. Ratio Analysis

If the Net Profit is lesser than the Return on Investment% or Return on Working
Capital, Tally displays the values with a negative sign.

7. Maintain balances bill by bill

Altering a ledger created under Sundry Debtors or Sundry Creditors, by setting

Maintain balances bill to Yes affects only the selected ledger and not the Group.

8. Migration Tool

Users may now migrate data to Tally 9, using the Tally Data Migration Tool on
Tablet PCs and Desktop computers of higher processor speed.

9. Stock Journal

The value in the rate field of a Stock Journal (Transfer of Materials) appears
appropriately.

10. Purchase/Sales Order

The list of Party or Customer ledgers is displayed appropriately, while creating a

Purchase/ Sales order respectively.

11. Inventory Report

The Godown – wise Inventory reports mow displays accurate balance values
whereas multiple Godowns are maintained.

12. VAT (Value Added Tax)

You can calculate value added tax in tally 9.

13. FIFO Perpetual

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 Tally introduces a new method of inventory valuation FIFO Perpetual, which is
similar to LIGO Perpetual. The Normal FIFO treats the opening balance of the financial year as
the terminating rate to apply for residual stock. FIFO Perpetual takes all existing past data. Both
LIFO and FIFO Perpetual are capable of changing the valuation when the company is split
unlike their ‘Annual’ versions, which are consistent.

14. Payroll

It has been integrated with accounts, in order to simplify Payroll processing.

Payroll can be configured to suit the requirements of various types of organization.

You can now configure, align and automate simple to complex payroll processes.
You can print pay slips, maintain salary/ wages and attendance/leave/overtime registers, and
generate Gratuity and Expat reports. You can also configure Payroll Data with cost centre
reports for business analysis.

15. POS Invoicing

POS Invoicing in Tally is equipped with ease of use and advanced capability to
simplify your retail operations. It efficiently automates the ‘check – out’ process, and allows you
to create invoices and collect payments from customers, in a matter of moments.

16. Multilingual Support

Tally comes with the World’s First Concurrent Multilingual Business Accounting
& Inventory Management Software for small and medium businesses. The user interface for the
software is available in Hindi, Marathi, Gujarati, Bengali, Kannada, Tamil, Telugu, Malayalam,
Hinglish (colloquial English) and Punjabi, and in Bahasa Melayu and Bahasa Indonesia
allowing you to interact with Tally, in a language of your choice.

INSTALLING TALLY 9
When you install Tally, a folder named Tally is created by default, where the
program files will reside. You can specify a different folder name, if you wish.

System Requirements

To install Tally, your system must meet the following minimum requirements.

System Requirements Configuration

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 Processor Intel Pentium IV and higher or equivalent

Memory 256 MB RAM or more

Free Hard Disk Space 40 MB Minimum (excluding the data)_

Monitor Resolution Recommended 1024*768 or higher

Note: For better performance Tally Multilingual needs more memory (about
40MB of Free Hard Disk Space)

To install Tally in Windows NT/2000/XP/2003/XP SP2/VISTA Workstation,

1. You need to have administrator/all rights (to create, write, update, modify and
delete) on the Application. Data, Configuration and Language directory.

2. Ensure that the Operating System you use supports Tally for Multilingual
support.

You can install Tally using one of the given methods.

Method 1:

• Double click install.exe form the CD.

Method 2:

• Click START from Windows.

• Select RUN.

• TYPE<CD drive>:/INSTALL.

• Press ENTER key.

Follow the instructions on your screen to install Tally.

1. The Tally Setup Wizard is displayed.

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 2. Click Next to continue

3. The Installation wizard displays the License Agreement. Read the license
agreement before you proceed. Click I Agree to continue. Click I Decline to stop setup or click
Back to go to the pervious screen.

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 4. In the Installation screen, you may accept the suggested directories. Else click
Change Application Directory or Change data Directory or Change Configuration Directory or
Change Language Directory the change the respective directory paths. Use Tab or the mouse to
change the path in any of the directories.

APPLICATION DIRECTORY
The tally program files reside in this directory.

Data Directory

The Tally data resides in Data directory.

The default directory where data is stored is C:/Tally/Data. To change click on

Change Data Directory button and enter the new directory.
When Tally is installed in a directory with an earlier version, it detects and retains
the data configuration path of the previous installation.

Configuration Directory

Tally configuration files reside in this directory. Specify the path of the directory
where configuration files should be saved. It is usually the same path as that of the Application
directory.

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 Language Directory

Tally Language files (.dct) reside in this directory.

Specify the path of the directory where the Language files will be maintained. It is
usually the same path as that of the Application Directory.

Note: If you are a multi-License User, select the Run Tally License Server at
Windows Startup check box.

During installation, you are prompted to specify the path and the OS files to install
the Indic languages.

5. Click Install Operating System Language Support to enable Language Support.

6. Select your Country name is Country Selection.

7. Select the Initial Startup Language from the list. When you start Tally for the
first time, Tally will appear in the language selected as the Initial Startup Language (screen).

8. Once you select the Initial Startup Language, Click Install to proceed with the
installation.

9. The installation progress startup is displayed as shown below.

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 10. Insert Windows CD to install language or Browse for the i386 folder in your
system.

Note: You will be prompted to install the i386 language support folder only if it is
not available in your system.

11. Click Finish to complete Setup.

After completing installation, double click Tally icon on the desktop to start
working on Tally.

MULTILINGUAL FEATURE IN TALLY9

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 Tally comes with the World’s First Concurrent Multilingual Business Accounting
& Inventory Management Software for small and medium business. The use interface for the
software is available in Hindi, Marathi, Gujarati, Bengali, Kannada, Tamil, Telugu, Malayalam,
Hinglish (colloquial English) and Punjabi, and in Bahasa Melayu and Bahasa Indonesia
allowing you to interact with Tally, in a language of your choice.

Thus, Tally gives you tremendous freedom to maintain accounts, as well as view
and print in any of the above mentioned Indian languages.
Tally enables you to enter data in one language and have it transliterated into
different languages. You can generate invoices, purchase orders or delivery notes in different
languages after entering data for the same in a different language.

Features of Tally Multilingual

Tally is a concurrent Multilingual software that

• Can display Tally in any language that the user chooses from any screen in
Tally.
• Supports Translation of Pre-Defined Masters
• Support Translation for the allowed languages.
• Can capture data entered using the phonetic language or system language.
• Can capture language specific Names and Aliases.
• Can print and display Report, Vouchers and Invoices in any language.
• Can copy text from Tally to Windows and vice versa. Use Ctrl + Alt + C to
copy and Ctrl + Alt + V to paste.

User Interface in Tally

The Tally interface displays in the language selected as Initial Startup Language,
at the time of installation. For example, if you have selected Hindi as Initial Startup Language,
the Tally interface displays as shown

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 Company Information

The first step to get started in Tally, is to Create a Company. The initial screen
appears as shown:

The Gateway of Tally screen is separated into six sections, namely Title Area,
Horizontal Button Bar, Main Area (Ctrl + M), calculator Area (Ctrl + N), Button Bar and the
Bottom Pane.

The elements of the Gateway of Tally screen are explained below:

Title Area

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 Title Area contains the Tally Cop0ytight and Tally website link. You can access
the Tally website directly from the Tally screen. You must have access to the Internet and
Internet Explorer Web browser installed on your computer.

Click on the http://www.tallysolutions.com link on the top frame of the screen to

enter our website. The link appears in all screen of Tally.

The Product type (Tally Gold, Tally Sliver, Tally Bronze or Educational) and
Tally Serial Number appears on the upper-right corner. The software serial number is usually a
unique number.

Horizontal Button Bar

The Button, Print (Alt + P), Export (Alt + M), Upload (Alt + O), Language (Ctrl +
L), Keyboard (Ctrl + K) and Help (Alt + H) can be seen in the Horizontal Button Bar.

Bottom Pane

The Bottom Pane contains the Version number, Release details (every ti8me a new
release of Tally is made, it is identified with a different release name like Release 3.14) and the
Current Date (the date configured in the computer). The name of the day, date, month and year
is displayed in DD, MM and YYYY format on the right- hand side.

System time (the time configured in the computer) appears on the lower-right
corner in Hour: Seconds: Minutes (HH/MM/SS) format.

The Pate appears in the lower left corner in the Bottom pane.

Close Button

The Close Button in the upper right corner functions similar to the use of ‘Esc’ in
Tally. It brings you to back to the Gateway of Tally from any screen.

Minimise Button

The Minimise button performs the standard Windows Operating System’s

function (windows 95onwords), allowing you to minimize Tally and work on other applications.
To restore Tally, click on the Tally icon on the taskbar.

Main Area (Gateway of Tally)

The Main Area is separated into two:

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 1. Left-hand side area

2. Right-hand side area

The left-hand side provides information on Current Period, Current Date and List
of Selected Companies (Name of the company and the date when last entry has been made).

The right-hand side displays the Company Information menu such as Select a
Company, Create a Company, Backup a Company or Restore a Company and so on.

Hot Keys

Hot keys are capitalized and are red in color on all the menu screens. Using the
Hot Keys in the Company Info Screen will take you to that particular screen or display the sub –
menus within that Option.

Calculator Area

Press [Ctrl + N] to activate the calculator. Calculator Area is used for calculator
functions. Any type of independent calculation can also be done using the calculator.

Button Bar

The buttons are designed to make the work easier and faster and faster and vary
from one screen to another based on the screen functionality. They appear on the right hand side
so the Tally screen and the inactive buttons are greyed out. You can either click these buttons or
press the shortcut keys to access the relevant screen.

The following are some of the buttons and their functions:

Help (Alt + H) – To access Tally’s online context-sensitive help

F1: Select Cmp – To select the company from the list of companies and access
data from other data directories on the local system or through the network. You can also access
the Directory field by pressing [Backspace].

F12: Configure – To access the configuration settings to manage the

information entered in Tally. For example, you can access the General Configuration to set
country specific defaults, before creating a company.

Button where a character or function key is underlined indicates that you have to
press underlined character or the function key along with [ALT] key.

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 Button where a character or function key is double underlined indicates, you have
to press the character or the function key along with [CTR;] key.

• F1: Press the shortcut function key [E1] to select a company.

• F1: Press [ALT +F1] to shut a company

• F8: Press [CTRL + F8] to select the Credit Note voucher

• Ctrl + M: Press Ctrl + M to access the Gateway of Tally.

• Ctrl + N: Press Ctrl + N to access the Calculator/ODBC Server frame.

Country Specific Configuration

The options available are Country Details, Style of Names, Style of Dates,
Configuration of Numbers and Other Options.

Go to Gateway of Tally > F12: Configure> General

The configuration settings of Country Details, Style of Name, Style of Dates and
Configuration of Numbers are self-explanatory. The prime differences are in the use of terms
like VAT in Europe and Sales Tax in Asia and American that have to be configured before
creating a company.

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CREATING A COMPANY
Creating a Company involves providing basic information about the company
whose books of accounts are to maintained in Tally.

Go to Gateway of Tally > (Alt + F3) Company info. > Create Company

Above is displayed an International Company Creation Screen. Note that the State
and PIN Code fields are not available.

The screen for India/SAARC would be:

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 A detailed explanation on each field is given:

Directory

The data path where you want the company to be created is specified in the
Directory field.

This field is skipped by default when you create the company in the data path
given in the Tally.INI file. If you want to change it, use the backspace key and modify it to th
path require.

This is referred to as the Tally Anywhere concept – which is the ability to

create/load companies in separate directories. The Directory field is displayed while selecting
Select, Create, Backup, Restore and Rewrite options for a company. By default, the cursor will
skip the field, presuming that you wish to use the default data directory for your work. You may
press Backspace to give a new path and work from there.

For example, the default Tally data directory could be C:/TALLY/DATA. You
may now wish to create a new company on C:/TALLY/PERSONAL, and some other companies
on C:/TALLY/BRANCHES. The next time, the default directory displays C:/TALLY/DATA,
and if you wish to work on the data of your branches, press Backspace and enter
C:/TALLY/BRANCHES for the directory name. This displays the companies whose data is
stored in that location in the List of Companies. You can even give the path of a network server
or any other storage device.

Name

Enter the name of the company whose books are being opened. If you are a
professional accountant and are maintaining the books of your clients, give the Client
Company’s name.

Mailing Name and Address

In addition to the Company Name, Tally provides the facility to enter the Mailing
Name field. It displays the Company Name by default. You may change it as required, if the
mailing name is different form the Company Name,. the mailing name and address details are
picked up for inclusion in any report that needs the company name and address as heading. For
example: Balance Sheets, Statement of Accounts, and so on.

Tally’s reports print the mailing name and address as given:

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 Tally does NOT restrict the number of lines for the address details. Tally
accommodates all the entered information and vertically compresses the same.

Note:

1. In the space provided for the Address details, observe the vertical compression
as compared to the Mailing Name field where there is horizontal compression.

2. You can specify any length for the mailing name and you are permitted to give
any number of lines for the address. The information is completely visible.

3. Tally handles compressed information correctly while printing. It adjusts the

reports accordingly.

Statutory compliance for

Select the Country from the List of Countries. The Statutory Features and Base
Currency Symbol are enabled in accordance with the country selected. For example, if the
accounts belong to a company in India, the base currency would be Indian Rupees. The Base
Currency will appear with respect to the Country selected.

Selecting India from the List of Countries brings up a State, pin code and
Telephone No. field.

State

You can select the appropriate state from the predefined list.

PIN Code

Specify the PIN Code (Postal Index Number) of the specified address.

Telephone

Enter the Telephone number.

E-mail Address

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 Enter the E-mail address that will be used to e-mail documents, reports and data
from Tally.

Currency

Currency symbol is the symbol of the base currency, that is, the currency that will
be used to maintain the books of account.

The symbol Rs. appears by default for India/SAARC Companies and the field is
left blank for International Companies.

Maintain

Tally displays a drop down for the Type of Company with two options Accounts
only and Accounts with Inventory.

Select Accounts only if you do not have any inventory transactions (suitable for
professionals and corporate offices).

However, at a later data (if required) you can choose to alter the information as
Accounts–with–Inventory. Select Accounts– with – Inventory, to maintain both financial
accounts and inventory.

Financial Year From

In most countries, the books of accounts of a company are maintained for a

stipulated period liked, 12 months, 15 months, and so on. This stipulated period is referred to as
the Financial Year.

The stipulated period of the financial year is 12 months in most countries. Tally
automatically considers 12 months from the date you give here as the Financial Year.

For example, if you enter April 1, 2005 as the date, the Financial Year will be
from April to March ending with March 31, 2006. If you enter October 1, 2005 as the Financial
Year From then the financial year will be from October 2005 to September 2006 ending with
30th of September every year.

Tally allows you to maintain data for multiple years by changing the period (Alt +
F2) at the Gateway of Tally. In addition, you can also specify the date of actual establishment of
th company (date of incorporation )

Books Beginning From

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

The date for Books beginning from can be changed, in case of companies, which
are incorporated in the middle of the year. If your company is new, you can opt to start the
books of accounts from the date of actual establishment of the company (date of incorporation)
but close books according to the Financial Year as specified by you. Tally provides the required
flexibility in such a case by allowing you to give the date when the books of accounts actually
began. Tally will open books from this date and close as on the last day of the Financial Year.

For example, if your company is established on August 19, 2005, the opening
balances for all the accounts can be given as on August 19, 2005 even though the Financial Year
given is April 1, 2005 (April to March Financial year). The company’s books will begin on
August 19, 2005 and close on March 31, 2006, which ensures smooth transition to the next year.

This concept can be applied even when you are migrating to Tally from any other
system or from a manual accounting system on any day during the Financial Year. Close books
in that other system on the previous day and start books on Tally from this day. You are allowed
to give opining balances of all Ledger accounts including Revenue accounts.

Tally Vault Password

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

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

Use Security control?

Set this to Yes, if you want to initiate a password-protected system to control

access to Tally data. Else, set this to No.

If you opt for security control, tally offers a comprehensive password based access
control to different features to Tally based on authority list created by the Administrator. (The
section on Security Control under Administer Tally contains details on authority lists)

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 Name of Administrator, Password, Repeat

Assuming the Tally Vault Password and Use Security Control is set to Yes enter
the Name of Administrator, Password and Repeat in the respective fields.

Use Tally Audit Features

Tally Audit allows the administrator or an auditor profile user to track changes in
accounting information. If you wish to use this facility, select Yes. Tally Audit will be available
only to the administrator/auditor, through Display of Statements of Accounts. It will be
discussed in greater detail under the Security Control section in Administer Tally.

On accepting the company creation screen, if you have specified Tally Vault
password, Tally prompts you to enter the Tally Vault password as appears:

Then Tally prompts you to enter the Name of User and Password (if any).

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 After verification Tally imports the latest statutory masters. Wait till the screen
shows that 100% of import is complete.

This completes the Company Creation process in Tally

An explanation on the field on the bottom of the Company creation screen follows.

Base Currency Information

The Base Currency Information is found in the bottom frame of the Company
creation Screen. Base Currency is the currency in which your accounts would be maintained.
Financial statements are prepared in the base currency by default and these are normally
required to be submitted to local statutory authorities. The Base Currency information in Tally
varies with the country selected for Statutory Compliance.

You can recode transactions and raise invoices in foreign currency; and also
maintain bank accounts or ledgers in foreign exchange, exchange, when required.

Base Currency Symbol

The currency symbol given earlier in the Company Creation screen is displayed
here automatically.

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 Tally uses this currency symbol in reports, wherever necessary.

Formal Name

Formal Name is the full name of the currency specified.

The Formal Name for the base currency is set to Indian Rupees for Indian
Companies.

Number of decimal places

The number of decimal places for the base currency is set to 2 by default.
However, you have the option of specifying up to 4 decimal places. Indian currency has 2
decimal places whereas certain other countries require 3 decimal place and so on.

Show Amounts in Millions

This is useful for companies, which require reporting the financial statements in
millions. This is possible only if Allow Multi- Currency is enabled in F11: Features.

Is System Suffixed to Amounts

For countries, which specify the symbol after the amount (value) – this facility is
provided. For example, Yen is specified after the amount (5000 Yen) unlike in India where the
symbol is specified before the amount (Rs.5000).

Put a space between Amounts and Symbol

This facility is provided to users who require a space between the amount and the
symbol. However, putting a space between the amount and symbol could give an opportunity for
misuse incase of cheque printing. Hence, the flexibility to turn option on and off as required is
provided.

Symbol for Decimal Portion

Enter the symbol for decimal portion.

Decimal Places for Printing Amounts in Words

You can specify the number of decimal places for printing the amount in words.
This number should be equal to or lesser than the number specified in Number of Decimal
places field in company creation or currency master screen which will appear in Invoice and
Cheque printing screen

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 For example, if the currency is expressed upto 3 decimal places, the numeric to be
printed in words can be restricted to 2 decimal places

Note: The Name of the Company, cannot be translated or transliterated but will
appear in the Language created.

LOADINGA COMPANY
A newly created company loads automatically. However, for subsequent working,
you must load or select the company you want to work with from the List of Companies. (Select
and Load are synonymous). A company can be loaded in two ways:

1. Automatically by Tally.
2. Using the Select Company option

Tally Loading the Company Automatically

When creating a company, Tally creates a sub-directory under its\DATA directory

for the company. The directory is allotted a number in serial order starting with 0001 (example –
10001, 10002…10009….10020, etc these are system generated codes for the company).

In order to automatically load a company, Tally has to be configured appropriately

by setting the Tally.ini file (available in the Tally directory).

Ensure that Default Companies is set to Yes and specify the company number
which has to be loaded automatically, for example, Load = 10000

Note: You can specify any number here as per the information available in the
data directory (10000 or 10002 or 10003, etc)

Example of sub-directories created by Tally for different companies:

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LOADINGA COMPANY USING THE 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:

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

Select Company

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

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 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:

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

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 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. 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):

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.

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 Gateway of Tally of an Accounts-with-Inventory Company

The Gateway of Tally menu of an 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

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 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

The screen appears as shown below:

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 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:

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.

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 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 the
company.

5. Press enter to delete the company.

Note: Deletion of a company is irreversible. The company is permanently deleted

from the system

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 Chapter
2
Administration in Tally

SECURITY CONTROL
In an ideal company scenario, there will be more than one person working on
Tally. In such a case, not every person needs to be given the full access. The head of the
department/Administrator should be able to create different users and assign their rights to them.

Tally has a very customizable security system. You can set up Security Levels and
users who are placed at these levels. The authority levels or Types of Security decides the rights
of the users while using Tally.

To create Security Levels

1. Go to Gateway of Tally, select F3: Cmp Info.> Create/Alter Company

2. In the Company Creation screen set Use Security Control to Yes.

3. Enter the Name of the Administrator.

4. Enter your Password and reenter the password for verification. The password is
not displayed for security reasons.

5. Accept Yes to save the changes made

USERS AND PASSWORDS

To create different users who belong to one or more different Security Levels of
Types of Security

Go to Gateway of Tally, select F3: Cmp Info > Security Control > Users and
Passwords.

The List of Users for Company screen is displayed.

30
 A brief description of all the fields in the List of Users for Company screen
follows:

Name: The selected company name is displayed here automatically.

Name of User: Enter the name of the user.

Password (if any): Enter the password if required.

Security Level: Select the security level form the Security List.

Note: You need to create Security Levels before creating users or the default
security levels available viz. Owner and Date Entry.

ALTERING/DISPLAYING USERS AND PASSWORDS AND

TYPES OF SECURITY
There is no separate menu option to alter or display Users and Passwords and
Types of Security options. Use the same menu to display or alter user or security level set-up.
To delete a User, delete the Name of User and Password and Accept, Yes to save. Do the same
for deleting a security level. if you have defined a user under a security level, then the security
level cannot be deleted before deleting the users under it.

TALLY AUDIT
Tally Audit provides the capability to the administrator/auditor to track changes in
the accounts following his previous review. Changes of two areas are very important – changes I
Transactions or Vouchers and changes in Ledger Master. Only changes that affect the integrity
of a transaction are considered. For e.g. a change in the narration does not affect the integrity of
a transaction and will not e considered as a change. Any material change in a voucher is logged.
The name of a ledger account if changed is material and hence it would be tracked.

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 Tally Audit feature should be enabled while creating the Company and creating
Security levels. Only a user designated as an auditor or the administrator can view the audit list
and act upon it.

BACKUP AND RESTORE

Backup

Tally has a flexible backup mechanism where in you can take a backup of the data
from virtually any storage medium into any other medium.

The more commonly used media are floppy drive, hard disk drive, zip drive, tape
drive, etc – installed either locally or on a network. In the screen, the source of the backup and
the destination of where it has to be stored have to be given and Tally will do as required.

Taking a Backup

The procedure for taking a backup is as follows

1. Go to Gateway of Tally, select F3: Cmp Info > Backup

2. The Backup Companies on Disk screen is displayed.

3. To change either the Source or the Destination paths, use the [Backspace] key
and change the path as required. Specify the paths of the Source and Destination drives. Incase
we want to take a backup onto another system on the network the Destination path will be
\\machinename\drivename\directoryname. The process of backing up data begins when at least
on company is selected for the same from the List of Companies. To stop selecting companies,
select the option End of List, which appears at the top of the selection list.

4. The backup file is stored as TBK900.001. If the backup is taken in a medium

likely to extend more than one- for example, floppy, then the extension digits (10001,10002 and
so on) will be stored accordingly.

The Backup screen appears as:

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 Note” If Tally Vault password is enables for a company, Tally will allow you to
select only one company at a time from the list for a backup.

BACKUP PRECAUTIONS
Data on a computer is vulnerable to all types of difficulties. Considering the same,
it is important that we do not overlook the importance of regular backing-up of data regardless
of the stability of the database. With a little planning and forethought, we can ensure that
maintenance of the important data is continuous and hassle-free.

Depending on the volume of data entry, an appropriate backup mechanism will

have to be devised. One method of achieving it will be by maintaining a backup directory in the
local hard disk or the server (external storage media such as the floppy disk, zip diskette can also
be used). We can have sub-directories for every day of the week under the main backup
directory and regularly take data backup in the following manner depending on the day of the
week.

Monday – C:\TallyBackup\Monday

Tuesday – C:\TallyBackup\Tuesday and so on till Saturday.

Note: Tally backup facility is not limited to the Hard Disk drive alone. You can
backup data not other storage devices also

The above procedure ensures that there exists a reliable data backup at any given
time. In order to use that reliable data backup or bring back the data from that existing data
backup you have to use the Restore option.

Important: It is preferable NOT to restore a backup onto the original data directory
primarily to ensure that No data is overwritten unintentionally.

Restore

Restore literally means to bring back. Similar to backing up of data, Tally allows
restoring of data from any medium into any other storage medium. The Restore Companies on
Disk screen is displayed as shown below:

33
RESTORING DATA
The procedure for restoring data is as follows

1. Go to Gateway or Tally, select F3: Cmp Info > Restore

2. The Restore Companies on Disk screen appears.

3. The Source and Destination paths displayed in the screen are those that were
used last.
4. The Source field has to have the appropriate path. It is the path form which you
intend to bring back the previous data. Accepting the path will read the contents of the particular
file and will then display the list of companies available.

5. Select as required and restore the data accordingly.

RESTORE PRECAUTIONS

It is preferable NOT to restore a backup onto the original data directory primarily to
ensure that No data is overwritten unintentionally.

Activate Company Features (F11: Features)

The different features of a company can be selected or modified by F11: Features

button. This button is available in almost all screens of Tally as you might wish to modify it as
your requirements change. Unlike F12: Configure, F11: Company Features is specific to the
current company only. Therefore, each company may have different features active. For
example, a company in your group may need multi-currency where as another company may
not. Configuration options, on the other hand, affect all companies maintained in the same Tally

34
directory and setting configuration for one company will affect other companies in that data
directory.

Note: Certain features like multi-currency and multi-locations, once set to Yes,
cannot be modified if the feature has been used. However, other features like Cost Centers and
Bill-wise details can be modified ever if they are used. If you reset the options after having used
the feature in transactions, it is advisable to rewrite the company by using CTRL + ALT + R.

Go to Gateway of Tally > F11: Features

The F11: Features menu displays as shown

The menu consists of the following options.

“ Accounting Features
“ Inventory Features
“ Statutory & Taxation

There are various setting available under Accounting Features, Inventory Features
and Statutory & Taxation Features in Company Operations Alteration screen, which determine
the information to be keyed in during transaction entire

35
 Chapter
3
Managing Groups
Ledgers and Vouchers

Accounts Info menu lists the masters through which you can provide Tally the
details of your company’s accounts. You can also manage Groups, Ledger and Vouchers from
this menu.

Go to Gateway of Tally > Accounts Info.

INTRODUCTION TO GROUPS
Tally follows the modern way of managing accounts called ‘Single Ledger’
concept of accounting. This is in direct contrast to subsidiary Ledger Accounting. All financial
entries are made using ledgers or account heads. Ledger accounts are created to identify
transactions.

The single ledger concept avoids the need for sub-ledgers and corresponding
control accounts in General Ledger. Tally allows you to group ledger information to generate
meaningful reports that are compliant with laws. Groups in Tally classify and identify account
heads according to their nature. This helps in presenting summarized information.

36
 Gateway of Tally > Accounts Info.>Groups

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.

37
 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]

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]

38
 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]

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.

39
 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)

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

40
 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.

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

41
 To record the company’s overdraft accounts with banks. For example, Bill
Discounted A/cs and Hypothecation A/cs etc.

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

42
 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 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.

43
12. INDIRECT INCOME [INCOME INDIRECT]
These are miscellaneous non-sale income accounts. Example: Rent Received and
Interest Received.

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

44
 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.

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)?

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

45
 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

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)

46
 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

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.

47
 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.

Creating a Single Ledger

The creation of Ledger depends on the features you opt for in the F11: Configure
screen before creating any Ledgers. You may configure or set your Ledgers to enable or disable
advanced mode.

Tally automatically creates two Ledger accounts namely, Cash (Under Cash-in-
Hand) and Profit and Loss Account (direct Primary Account). You need to create all other
accounts heads. There are no restrictions in Ledger creation except that you cannot create
another Profit & Loss A/C. Any number of Cash Accounts may be created in any other name
like Petty Cash.

Creating a Ledger Accounts with minimal information:

Go to Gateway of Tally > Accounts Info. > Ledgers > Create (under Single
Ledger)

Name

Enter the Name of the account. You can provide the full name of the account.
Tally fits it all in. Press Enter to move to the next field. Tally does not allow entry of duplicate
names. the uniqueness check is made here itself.

Note that punctuation and other non-relevant information are ignored by Tally in
its recognition of a name. Thus, CST, C.S.T. and C.S.T. are all considered as same.

Tally converts the first letter of all relevant words to upper case, which helps you;
speed up data entry. You need not bother about changing the case every time it is a different
word.
Alias

Enter an alias name if required. You can access the Ledgers using the original
name or the alias name.

Under

48
 All accounts must be classified under their appropriate Groups. Select the Group
under which the Ledger is created from the List of Groups. To create a new Group from this
field press [ALT+C]

A Group is not important by itself, but because it controls the usage of Ledger
accounts. A wrong classification would affect the treatment of the Ledger account in final
statements and during voucher entry.

You can, alter a Ledger account to change its group classification at any time.

Opening Balance

If yours is an existing company whose books you are entering onto Tally, Opening
Balance would be applicable in circumstances such as when the Ledger is an asset or a liability
and if it has a balance in the account as on the date of beginning of books in Tally.

Tally recognises normal accounting principles of debit balances for Assets and
credit balances for Liabilities. It accepts the reverse for obverse balances. Revenue accounts
normally do not have balances. Tally, however, permits you to give balances even for such
accounts – You may be transferring your books on to Tally in the middle of the year and may
not have closed them in your earlier system. Hence, you may specify whether the balance is
Debit or Credit. Simply D or C also would suffice.

Note: Use Ctrl + A at the field following which the information in other fields do
not need to be changed.

Creating Multiple Ledgers

You can create multiple Ledgers at a time in this mode. You can first create a
Ledger under each group in single Ledger mode and then the rest of the Ledgers in multiple
mode. Tally will set the settings of the Ledger created as default for other Ledger to be created
in multiple mode.

Go to Gateway of Tally > Accounts Info. > Ledgers > Create (under Multiple
Ledger)

49
 The Multiple Ledger Creation screen is displayed. A brief description on each of
the fields in the Multiple Ledger Creation screen follows:

Under Group

Select the name of the group under which you want to create the Ledgers from the
List of Groups.

Below this field, the other fields are arranged in a table. The cursor rests at the
field Name of Ledger.
The other fields in the column are:

S. No

This is auto generated.

Name of Ledger

Enter the name of the Ledger

Under

This field defaults to the parent group selected in Under Group. The selected
group in Under Group gets displayed here automatically and the cursor skips this column.
However, if you select All Items in Under Group field, the cursor does not skip this column and
you have the option to select the group. You can even create a new group from this field by
pressing Alt+C.

Opening Balance

This is the balance remaining when you first enter your books on Tally, i.e., the
date of beginning of books. If you have opted to maintain balances bill-by-bill, you must give
the bill details.

Dr

Specify whether the Opening Balance is Debit or Credit. Tally follows the normal
accounting principals of accounting.

Note: While creating Ledgers in multiple mode, the field Cost Centers are
applicable, is set to Yes for Revenue accounts and No for Non-Revenue accounts by default.
The field Inventory values are affected is set to Yes for Sales and Purchase Accounts and No for
the others by default.

50