Accounting Vouchers

Tally is pre programmed with a verity of accounting vouchers, each designed to

perform a different job. The standard accounting vouchers are:

1. Contra voucher (f4)

2. Payment voucher (f5)
3. Receipt voucher (f6)
4. Sales voucher/ invoice(f8)
5. Credit note voucher (ctrl+f8)
6. Purchase voucher(f9)
7. Debit note voucher (ctrl+f9)
8. Reversing journal (f10)
9. Memo voucher (ctrl+f10)
10. Journal voucher(f7)

Day Book

Daybook Works in Tally same as Journal in Manual Accounting. Alteration is also

done through Daybook.

Steps: - Go to Gateway of Tally>>Display>>Daybook.

 Suppose you want to display entry of Particular date then press F2 and Type
date press enter.
 Suppose you want to display entry of particular period then press (Alt+f2) and
Specify Period, Press enter
 Suppose you want to display detail of all transactions then press (Alt + F1)
key.

How to start Tally:-

Steps:-
i) click on start button
ii) click on all program
iii) Select tally program.
How to create a company:-
Steps:-
i) open tally program
ii) press alt+f3 keys
iii) select create company option
iv) Fill form and do accept.
How To Quit Tally:-
Steps:-
i) Press esc key until yes/no dialogue box does not appears.
ii) Press enter key.
To Open a Company:-
Steps:-
i) Open Tally
ii) choose select company option
iii) Select your company from list and press enter.
To Shut a Company:-
Steps:-
i) Press Alt+f1 key.
To Alter a company:-
Steps:-
i) Press Alt+f3 keys.
ii) Select alter option.
iii) Select company and press enter.
iv) Do alteration and save company.
To delete a company:-
Steps:-
i) press alt+f3 keys
ii) Select alter option.
iii) Select company which you want to be deleted.
iv) Press alt+d keys and press enter twice.

Now we enter these transaction receipt voucher in tally.

Steps :

a) Open your company from tally

b) Select accounting vouchers
c) Press f6 key.
Note:
i) Message of spelling error tell us that ledger is not exist in company.
ii) Press alt+c keys for creating a new ledger.
iii) Press f2 key for inserting date in voucher

Displaying Vouchers

Steps :

i) Gateway of tally
ii) Select Display option
iii) Press f2 key if you want to display particular date voucher

Note: press alt+f2 key for displaying list of vouchers in particular period.
 Purchase Voucher[f9]

Purchase Voucher is used when you have to purchase some goods from any party
and you get an invoice against cash or credit purchase from the party. Tally provides
the facility to create purchase and credit purchase entries from purchase voucher.

Note: During purchase voucher entries you have to change the mode of this
voucher by pressing ctrl+v Keys. Voucher mode to invoice mode and invoice mode
to voucher mode as per your requirement.

For Example :

i. Purchased Goods from Veeru 40,000 01-06-16

ii. Purchased Goods from Abhiram 11000 02-06-16
iii. Purchased Goods for cash 18000 03-06-16
iv. Bought Goods from Shyam 12000 04-06-16

Date Particulars Debit Credit

01-june Purchased a/c dr 40000
To Veeru 40000
(purchased goods on credit)
02-june Purchased a/c dr 11000
To Abhiram 11000
(purchased goods with cash)
03-june Purchased a/c dr 18000
To cash a/c 18000
(purchased goods with cash)
04-june Purchased a/c dr 12000
To Shyam 12000
(Purchased goods on credit)

Do Yourself

v. Purchased goods from Sumit Traders. 10000 05-06-16

vi. Purchased goods with cash. 5000 06-06-16
vii. Purchased goods with cash. 9000 07-06-16
viii. Purchased goods from Manoj 5000 08-06-16
ix. Purchased goods from Neha. 12000 09-06-16
x. Purchased goods with cash 5000 10-06-16

Date Particulars Debit A Credit A

05-06-16 Purchased a/c dr 10000
To Sumit Traders 10000
(Purchased Goods on credit)
06-06-16 Purchased a/c dr 5000
To cash 5000
(being purchased goods with cash)
07-06-16 Purchased a/c dr 9000
To cash 9000
(being purchased goods with cash)
08-06-16 Purchased a/c dr 5000
To Manoj Traders 5000
(being purchased goods on credit)
09-06-16 Purchased a/c dr 12000
To Neha 12000
(being purchased goods on credit)
10-06-16 Purchased a/c dr 5000
To cash a/c 5000
(being purchased goods with cash)

Purchased Invoices

1. Purchased goods from Veeru 40,000. 01/06/16

[Basmati Rice 800 kg @50]

Credit Purchase Invoice

Consignee : 8-9 Date : 01/06/16
Address : Invoice no :01

Supplier name : Veeru LR/GR

Address :
Sr no Name of item Qty Rate Amount
Per
1 Basmati rice 800 50 Kg 40000

2. Purchased goods From Abhiram 11000 02/06/16

[Soyabean Oil 100 kg @110]

CreditPurchase Invoice
Consignee : 8-9 Date : 02/06/16
Address : Invoice no : 02
Supplier name : Abhiram LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Soyabean Oil 100 110 Kg 11000

3. Purchased goods for cash 18000 03/06/16

[Mustard oil 200 kg @90]

CashPurchase Invoice
Consignee : 8-9 Date : 03/06/16
Address : Invoice no : 03
Supplier name : Cash LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Mustard Oil 200 90 Kg 18000

4. Bought goods from Shyam 12000 04/06/16

[Red chili powder 100 kg @120 kg]

CreditPurchase Invoice
Consignee : 8-9 Date : 04/6/16
Address : Invoice no : 04
Supplier name : Shyam LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Red Chili Powder 100 120 Kg 12000

5. Purchased goods from Sumit Traders worth rs 10000 05-06-16.

[Coconut oil 100 kg@ 100]

CreditPurchase Invoice
Consignee : 8-9 Date : 05/06/16
Address : Invoice no : 05
Supplier name : Sumit Traders LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Coconut Oil 100 100 Kg 10000

6. Purchased goods with cash. 5000 06-06-16

[Basmati Rice 100kg@50]

CashPurchase Invoice
Consignee : 8-9 Date : 06/06/16
Address : Invoice no : 06
Supplier name : Cash LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Basmati Rice 100 50 Kg 5000

7. Purchased goods with cash. 9000 07-06-16

[Mustard Oil 100 Ltr. @ 90]

Cash Purchase Invoice

Consignee : 8-9 Date : 07/06/16
Address : Invoice no : 07
Supplier name : Cash LR/GR
 Address :
Sr no Name of item Qty Rate Per Amount
1 Mustard Oil 100 90 Lit 9000

8. Purchased goods from Manoj. 5000 08-06-16

[Basmati Rice 100 kg @ 50]

Credit Purchase Invoice

Consignee : 8-9 Date : 08/06/16
Address : Invoice no : 08
Supplier name : Manoj LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Basmati Rice 100 50 Kg 5000

9. Purchased goods from Neha. 12000 09-06-16

[Red Chili Powder 100 kg @ 120]

Credit Purchase Invoice

Consignee : 8-9 Date : 09/06/16
Address : Invoice no : 09
Supplier name : Neha LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Red chili Powder 100 120 Kg 12000

10. Purchased goods with cash 5000 10-06-16

[Coconut Oil 50 kg @100]

Cash Purchase Invoice

Consignee : 8-9 Date : 10/06/16
Address : Invoice no : 10
Supplier name : cash LR/GR
Address :
Sr no Name of item Qty Rate Per Amount
1 Coconut Oil 50 100 Kg 5000
Creating Inventory

1. Creating Stock Group:-

Steps:-
i) Go to gate way of tally>>inventory info>> Stock Groups under multiple
group >> create >>Type group as follows:-

Sr no Name Under Can Quantities of items be added

1 Oil Primary Yes
 2 Spices Primary Yes
3 Rice Primary Yes

2 .Creating Units of measure:-

Steps : Go to Gateway of Tally>> Inventory Info >> Units of measure >>

Create>> Type (Simple)>>Symbol (Kgs)>>Formal Name (Kilograms)>>Decimal
Places (3).

3. Creating Stock Items:-

Steps : Go to Gateway of Tally - Inventory Info- Stock Items – Create (Multiple

Stock Items)

4 Creating Stock Items As Follows:-

Under Groups: - All Items

Under

Sr No Item Name Under Unit

1 Soyabean oil Oil Litre
2 Mustered oil Oil Litre
3 Coconut oil Oil Litre
4 Basmati rice Rice Kgs
5 Red chili powder Spices Kgs

Maintaining Godown:-since this feature is not available in normally in inventory

info so we have to enable this feature from inventory features option.

Steps : Goto gateway of tally >> inventory info >> press f11 key >> press f2 keys
>> set yes to maintain multiple godowns option >>

Steps:-

1. Goto gateway of tally ≫ inventory ≫ Godowns ≫ Create

2. Create following Godowns as follows:

Name Address Under

Godown1 Lalgate Primary
Godown2 Ganganagar Primary
Fatehgarh location Main location
Godown3 Shisham bagh Fatehgarh location
Godown4 Navadiaya Fatehgarh location
Godown 5 Kotha Parcha Primary Location
Note : press f12 key and set yes to use addresses for godowns option.
 Sales Voucher [f8]

You can use this voucher type for credit and cash sales entries in tally software.
There are two modes in which you can make entries in sales voucher either in
voucher entries mode or invoice mode.

For Example:

1. Sold goods worth 15000 to Tarun. 01/07/16

2. Sold goods for cash 20000 02/07/16
3. Sold goods to Utsav for cash 6000 03/07/16
4. Sold goods to Pranav on credit 21500 04/07/16
5. Cash sales 15000 05/07/16

Date Particulars Debit Credit

1-july Tarun dr 15000
To sales a/c 15000
( goods sold on credit)
2-july Cash a/c dr 20000
To sales a/c 20000
(goods sold with cash)
3-july Cash a/c dr 6000
To sales a/c 6000
(goods sold with cash)
4-july Pranav dr 21500
To sales a/c 21500
(goods sold on credit)
5-july Cash a/c dr 15000
To sales a/c 15000
(goods sold with cash)

Do Yourself

1. Sold goods for cash 20000 06-07-016

2. Sold goods cash to Mohan 15000 07-07-016
3. Sold goods to Ravi 6000 08-07-016
4. Sold goods to Mohan 10000 09-07-016

Sales Invoice

1. Sold goods worth 15000 to Tarun. 01-07-16

[Basmati rice200@75]

Credit sales invoice

Consignee Date : 01/07/16

 : 8-9
Address : order no : 1

Customer Name : Tarun L.R/G.R

Address :

Sr no Name of item Qty Rate Per Amount

1 Basmati Rice 200 75 Kg 15000

2. Sold goods for cash 20,000 02/07/16

[Mustard oil 200kg@100]

Cash Sales invoice

Consignee : 8-9 Date : 02/07/16

Address : Order no : 01

Customer name : cash LR/GR

Address :

Sr no Name of Item Qty Rate Per Amount

1 Mustard oil 200 100 Kgs 20000

3. Sold goods to Utsav for cash 6000 03/07/16

[Red chili powder 30kg @200]

Cash Sales Invoice

Consignee Name : 8-9 order no : 2

Addresss : Dated : 03/07/16

Customer Name : Cash LR/GR

Address :

Sr no Name of item Qty Rate Per Amount

1 Red Chili Powder 30 200 Kg 6000

4. Sold goods to Pranav on credit. 21500 04/07/16

[Red chili powder 70kg@200, Basmati Rice 100 kg@75]

Credit Sales Invoice

 Consignee Name : 8-9 order no : 2

Address : Dated : 04/07/16

Customer Name : Pranav LR/GR

Address :

Sr no Name of item Qty Rate Per Amount

1 Red Chili Powder 70 200 Kg 14000

2 Basmati Rice 100 75 Kg 7500

5. Cash sales 15,000 05/07/16

[Basmati Rice 200kg @75]

Cash Sales Invoice

Consignee Name : 8-9 order no : 3

Address : Dated : 05/07/16

Customer Name : cash LR/GR

Address :

Sr no Name of item Qty Rate Per Amount

1 Basmati Rice 200 75 Kg 15000

6. Sold goods for cash 20000. 06/07/16

[Red chili powder 100 kg@200]

Cash Sales invoice

Consignee : 8-9 Date : 06/07/16

Address : Order no : 4

Customer name : cash LR/GR

Address :

Sr no Name of Item Qty Rate Per Amount

1 Red chili powder 100 200 Kgs 20000

7. Sold goods with cash 15,000 07/07/16

[Basmati Rice 200kg@75]

Cash Sales invoice

Consignee : 8-9 Date : 07/07/16

Address : Order no : 5

Customer name : cash LR/GR

Address :

Sr no Name of Item Qty Rate Per Amount

1 Basmati Rice 200- 75 Kgs 15000

8. Sold goods to Ravi 6000. 08/07/16

[Mustard oil 60kg@100]

Credit Sales invoice

Consignee : 8-9 Date : 08/07/16

Address : Order no : 3

Customer name : Ravi LR/GR

Address :

Sr no Name of Item Qty Rate Per Amount

1 Mustard oil 60 100 Kgs 6000

9. Sold goods to Mohan 10,000 09/07/16

[Mustard oil 40ltr@100, Soyabean oil 50ltr@120]

 Credit Sales invoice

Consignee : 8-9 Date : 09/07/16

Address : Order no : 09

Customer name : Mohan LR/GR

Address :

Sr no Name of Item Qty Rate Per Amount

1 Mustard oil 40 100 ltr 4000

2 Soyabean oil 50 120 ltr 6000

Exercise -1
1. Status of all godowns.
2. Total purchase.
3. Total sales.
4. Status of sundry creditors.
5. Status of sundry debtors.

Receipt Voucher Entry

1. Cash received from Mohan 5000. 15-07-16

2. Cheque received from Mohan 4000. 16-07-16
3. Cash received from Pranav 10000. 17/07/16
4. Cheque of 5000 received from Pranav. 18/07/16
5. Cash received from Ravi 3000. 19/07/16
6. Cheque of 3000 received from Ravi. 20/07/16
7. Cash received from Tarun 3000. 21/07/16
8. Cheque of received from Tarun 2500. 22/07/16
9. Took loan from Anush 20,000. 23/07/16

15-07-16 Cash a/c dr 5000

To Mohan 5000
(Being cash received from
Mohan)
16-7-16 Bank a/c dr 4000
To Mohan 4000
(Being cheque received
from Mohan)
17-07-16 Cash a/c dr 10000
To Pranav 10000
(being cash received from
Pranav)
18-07-16 Bank a/c dr 5000
To Pranav 5000
(being cheque received
 from Pranav)
19-07-16 Cash a/c dr 3000
To Ravi 3000
(being cash received from
Ravi)
20-07-16 Bank a/c dr 3000
To Ravi 3000
(Being Cheque received
from Ravi)
21-07-16 Cash a/c dr 3000
To Tarun 3000
(being cash received from
Tarun)
22-07-16 Bank a/c dr 2500
To Tarun 2500
(being cheque received)
23-07-16 Cash a/c dr 20000
To loan from Anush 20000
(being took loan from
Anush)
Exercise-2
1. Show the status of sundry debtors.
2. Show the status of Mohan.
3. Show the status of Pranav.
4. Show the status of Tarun.

Payment Voucher [F5]

A document which can be used as proof that a Monetary transaction has occurred
between two parties. In business, a payment voucher can be used for a variety of
purposes.

For Example

1. Bought land for 500000. 1-08-16

2. Purchased Machinery for cash 4500 . 2-08-16
3. Bought furniture for proprietor’s residence and paid cash 10000.3-08-16
4. Paid cash to Veeru 20000 . 4-08-16
5. Paid to Veeru by cheque 15000. 5-08-16
6. Paid to Intel computers by cheque 10000 6-08-16
7. Bought furniture and paid by cheque 15000 7-08-16
8. Paid to Anush by cheque on loan account 5000. 8-08-16
9. Withdrew from Sbi for personal uses 1000 9-08-2016

Date Particulars Debit Credit

1-08-16 Land a/c dr 500000
To cash a/c 500000
(bought land)
 2-08-16 Machinery a/c dr 4500
To cash a/c 4500
Purchased machinery
3-08-16 Drawing a/c dr 10000
To cash a/c 10000
(Purchased machinery)
4-08-16 Veeru dr 20000
To cash a/c 20000
(paid cash)
5-08-16 Veeru dr 15000
To bank a/c 15000
(cheque paid)
06-08-16 Intel Computers dr 10000
To bank a/c 10000
(cheque paid )
07-08-16 Furniture a/c dr 15000
To bank a/c 15000
(cheque paid)
08-08-16 Loan from Anush a/c dr 5000
To bank a/c 5000
(cheque paid)
09-08-16 Drawing a/c dr 1000
To sbi a/c 1000
(Being withdrawn cash from
sbi for personal use)

Ledger

Ledger Name Ledger Head

Land a/c Fixed Assets

Machinery a/c Fixed Assets

Drawing a/c Capital a/c

Loans from Anush Loans & Liability

Do Yourself
 1. Paid salary 10000. 10/08/16
2. Paid office expense 5000. 11/08/16
3. Paid electricity bill 5000. 12/08/16
4. Paid interest 5000. 13/08/16
5. Paid rent through cheque 5000. 14/08/16
6. Paid cheque against loan 7000. 15/08/16
7. Paid wages 4500. 16/08/16

Ledger

Ledger Name Ledger Head

Salary A/c Indirect Expenses

Office Expenses A/c Indirect Expenses

Electricity bill A/c direct Expenses

Interest A/c Indirect Expenses

Rent A/c Indirect Expenses

sbi A/c Bank A/c

Loan A/c Loan’s(Liabilities)

Wages a/c Direct expenses

Exercise-3

1. Show the status of cash.

2. Show the current status of Fixed Assets.
3. Show the status of Capital Account.
 4. Show the status of Veeru.
5. Show the status of SBI Account.
6. Show the status of Current Liabilities.

Contra Voucher[f4]

This voucher is used when you deposit any cash in bank account or cash withdrawal
from bank account by cheque/DD/ATM or Fund transfer from one account to another
account by cheque/DD.

For Example:

1. Open an account in SBI and deposited 50000 1-9-16

2. Cash deposited into SBI bank 60000. 2-9-16
3. Withdrew from SBI bank 5000.3-9-16
4. With drawn from SBI for office uses 8000. 4-9-16
5. Opened an account in PNB and deposit 50000. 5-9-16
6. Fund of 10000 transferred from SBI to PNB. 6-9-16
7. With drawn from SBI for office uses 8000. 7-916
8. Fund of 6000 transferred from PNB to SBI. 8-9-16

Date Particulars Debit A Credit A

1-9-16 Sbi a/c dr 50000
To cash a/c 50000
(being opened an account)
2-9-16 Sbi a/c dr 60000
To cash a/c 60000
(being deposited cash)
3-9-16 Cash a/c dr 5000
To sbi a/c 5000
(being withdrew cash)
4-9-16 Cash a/c dr 8000
To sbi a/c 8000
(being withdrew cash)
5-9-16 Pnb a/c dr 50000
To cash a/c 50000
(being deposited cash)
6-9-16 Pnb a/c dr 10000
To sbi a/c 10000
(being fund transferred)
7-9-16 Cash a/c dr 8000
To sbi a/c 8000
(being withdrew cash)
8-9-16 6000
sbi a/c dr 6000
to pnb a/c
(being fund transferred)

Exercise-4

1. Show the status of cash in hand after entering contra voucher.

2. Show the status of Bank Account after entering contra voucher.

Debit Note Voucher[Ctrl+f9]

Debit notes are used for debiting party accounts, for example, in case of
purchase return or when your supplier has granted you credit due to
different reasons. This voucher type will be available after configuration of
f11 features.

Configuration of Debit Voucher

Go to gateway of tally >> accounting vouchers >> press f11 keys >> set yes to use
debit/credit note vouchers.

For Example:

1. Goods returned to Veeru. 5000/- 21-07-16

[Basmati Rice 1 00 kg @ 50]

Ref invoice no 01
Party A/c name Veeru
Purchase ledger Purchase Return
Sr no Name of Item Quantity Rate Per Amount
1 Basmati Rice 100 50 Kgs 5000

Do Yourself
2. Returned goods to Abhiram 5500.
22-07-16
[Soyabean oil 50 kg@110]
Exercise-5
1. Show the status of Veeru Before debit note voucher creating.
2. Show the status of Abhiram Before debit note voucher creating.
3. Show the status of Veeru after debit note voucher creating.
4. Show the status of Abhiram after debit note voucher creating.

Credit Note Voucher[ctrl+f8]

 Credit Note is an accounting document issued by the seller to the buyer
informing that his account has been credited due to sales return made by
him.
For Example:
1. Goods returned by Tarun 7500 23-07-16
[Basmati Rice 100 kg@75]

Ref Order no 1
Party A/c name Tarun
Sales ledger Sales Return
Sr no Name of Item Quantity Rate Pe
1 Basmati Rice 100 75 Kg
Do Yourself
1. Goods returned by Pranav 6000 24/07/16
[Red Chili Powder 30Kg @ 200]
Exercise-3
1. Show the status of Tarun Before credit note creating.
2. Show the status of Pranav Before credit note creating.
3. Show the status of Tarun after credit note creating.
4. Show the status of Pranav after credit note creating.

Goods Transfer From One Godown to Another Godown:-

Steps:-

Go to Gate way of tally ≫ inventory vouchers ≫ select item from

source ≫ transfer item to destination.
1.

Exercise-3
1. Transfer Basmati rice from godown 1 to godown 2.
Use OF Calculator
Consider an example:-
Paid salary of 3 months @ rs 12345/month.
Note: -Press ctrl+n for activation of calculator.
Press ctrl+m for activation of voucher.
Memorandum Voucher[Ctrl+F10]
Sometimes we give some amount to any employee of the company for any
particulars task but we have no exactly idea about the expanse of that task and we
want to add this voucher in tally for memory so there is a voucher for memory in
tally and this voucher is known as Memorandum Voucher.
This voucher is also used for unknown expanses, and this voucher does not effect
on any ledger.
Enabling Memorandum Voucher
Steps: - Go to gateway of tally >> press f11 >> accounting features >>
set yes to use reversing journal and optional vouchers.
Ex: -Paid cash for Employee A 1,000 03-05-16
Employee A a/c dr 1000
To cash a/c 1000
(Being amount given for office expenses)
Suppose that when you came to know about the original expenditure then you can
convert this memo voucher into payment voucher
For example:- cash 800 paid to employee A for stationary on 04-05-16.
Show Memorandum Report
Steps
Goto gateway of tally >> display >> exception report >> memorandum
Reversing Journal Voucher [f10]
Sometimes we want to know. Status of profit & Loss account. Mostly every firm paid
salary etc after ending the month of that, suppose that the salary is due for month of
January but we paid this in the month of February so we add this in month of
February. If we want that this money is display in profit and loss account so we have
to create a reversing journal voucher.
Enabling Reversing Journal Voucher
Steps:-
Go to gateway of tally >> press f11 key >> set yes to use reversing journal voucher
and optional voucher.

Ex: - paid salary of 5000.

Salary a/c dr5000
To cash 5000
(Provision for salary)
Applicable up to 31-01-2017
Scenario
This feature is mainly used for creating provisional reports. Under this only those
vouchers falls whose ledgers does not affect on status. For example optional
voucher, memorandum voucher, reversing journal voucher.
Creating Scenario
Steps:
Go to gate way of tally >> accounts info >> scenarios >>

Name Provision
Include actual Yes
Include Reversing journal voucher
Exclude End of list

Now we want to know status of profit & loss account from gateway of tally and profit
&
loss account but here we see that reversing journal entry did not update here so if
we want to see updating so we have to create a new column and for creating a new
column just press alt+c keys and fill detail as follows:
 Column Details
From (blank for beginning) 1-4-2016
To ( blank for end 31-01-2017
Method of stock valuation Default
Types of value to show Provision
Showvariance No

If you want to show in detail then press alt+f1 keys.

Payroll

Create Unit [work] for payroll: Hour, Minute

a. create compound unit 1 hour – 60 minutes

steps:- Inventory info >>units of measures>>
1. Create attendance type-
a. Sick leave [ leave with pay]
b. Absent [ leave without pay]
c. Overtime [production]
steps:- Inventory info >>press f11>accounting feature >> set yes
to maintain payroll
2. Create pay head-
a. Basic [on attendance]
b. Da [as computed value-50% on basic]
c. Ta[Flat Rate]
d. Overtime[on production]
e. Gratuity[on condition]
3. Create Employee Group :
a. Category :- Employee
b. Name : Accounts
Professional Tax Slab
Lab Activity:-

Activate payroll features from f11 configuration and set yes to maintain payroll and
more than one payroll/ cost category.

Create unit[work] : If an employee does overtime in a company then his overtime is

count in Hour, that is why to maintain work unit is important.

Pay Head Creation:

For Example:

1. create a pay head for Basic Salary

Name Under
Name Basic
Pay head type Earning for employees
Under Indirect expenses
Affect net salary Yes
Name to appear in pay slip Basic
Use for Gratuity Yes
Calculation type On Attendance
Attendance/leave with pay Sick leave
Calculation Period Leave Month
Per day calculation Basis User Defined
Month of 30 days
Rounding Method Not applicable

2. Create a pay head for DA [Dearness Allowance]

Name Under
Name DA [Dearness Allowance]
Pay head type Earning for employees
Under Indirect expenses
Affect net salary Yes
Name to appear in pay slip DA
Use for Gratuity No
Calculation type On As computed value 50%
Calculation Period Days
Rounding Method Not applicable

3. Create a pay head for TA [Travelling Allowance]

Name Under
Name TA[Travelling Allowance]
Pay head type Earning for employees
Under Indirect expenses
Affect net salary Yes
Name to appear in pay slip TA
Use for Gratuity No
Calculation type On Flat Rate
Calculation Period Months
Rounding Method Not applicable

4. Create a pay head for Over Time

Name Under
Name Over Time
Pay head type Earning for employees
Under Indirect expenses
Affect net salary Yes
Name to appear in pay slip Over Time
Use for Gratuity No
Calculation type On Production
Production Type Over Time
Rounding Method Not applicable

5. Create a pay head for Gratuity

Name Under
Name Gratuity
Pay head type Gratuity
Under Current Liabilities
Gratuity days of a month 30
From 1 to 60 0
From 61 to 0 15
Under current Liabilities

Note : It is must to know about gratuity 1972. Gratuity is not apply on employees of
their starting 5 years. After 5 years Gratuity Act is apply on employee and at the last
company has pay the Gratuity.

6. Create a Pay Head for Professional Tax.

Name Under
Name Professional

Pay head type Employees Statutory Deduction

Under Duties & Taxes
Affect Net Salary Yes
Name to appear in Pay slip Professional Tax
Calculation type As computed value
Calculation Period Months
Rounding method Not applicable
Compute On Current Earning Total

Sub Window for calculation type:

Computation InfoCompute : on Earning Total

Effective From From Amount up to Slab type Value basis

Amount
1-apr-2016
10000 Value 0
10000 15000 Value 200
15000 Value 300
 7. Create a Pay Head for PF.

Name Under
Name PF
Pay head type Deduction from Employee
Under Current liabilities
Affect Net Salary Yes
Name to appear in Pay slip PF
Calculation type As computed value
Calculation Period Months
Rounding method Not applicable

Compute : On Specified Formula

Function Pay head Type

Add Pay Head Basic

Add Pay Head DA

Creating Payroll Group

Steps:
Goto gateway of tally >> Payroll info >> employee group >> create >> fill
detail as follows:

Category Employee
Name Account
Under Primary

Note:
Since in category primary cost category appears by default so we have to
create ledger of employee and fill detail as follows:

Name Employee
Allocate Revenue Item Yes
Allocate Non Revenue Item Yes

Create another group named Purchase also

 Category Employee
Name Purchase
Under Primary

In category by default primary cost category shows but we should replace

it with employee after creating ledger with the help of alt+c keys.
Fill detail as follows in category ledger

Name Employee
Allocate Revenue Item Yes
Allocate non-revenue item Yes

Fill detail of Employee

Steps:
Go to gateway of tally >> payroll info >> employees >> create >> fill detail
as follows:

Name Under
Category Employee
Name Mr. Sumit Singh
Under Accounts
Date of joining 1-4-2016
Employee no 456
Designation Officer
Function Maintain Accounts
Location Farrukhabad
Gender Male.
Date of birth 24-06-1993
Blood Group A+
Father’s Name Mr. UdayPal Singh
Address Government Quarters Ghumna
kotwali
Farrukhabad
Contact no 9628593929
Email-id
Bank Name Sbi
Branch Railway Road
Account No 3258xxxxxxx

Name : Mr. Sumit Singh

Under : Account
Effective Pay Rate Per Pay head Calculation
From head type type
1-april- Basic 6000 Months Earning On
2016 from attendance
employees