Tally 9

 Accounting Fundamentals Basics of Tally Configuration Creating Groups and Ledgers Vouchers Advanced Features Reports Inventory Storage and transferring of items Vouchers with Inventory Inventory reports Advanced reports
Tally 9

 Accounting

is a science of recording classifying and summarizing of business transaction ,done on the basis of certain principles such as principles of Double Entry System, which are universally applicable. Accounting is based on certain concepts and conventions and is subject to some limitations. It is influenced by bias and personal judgment of the accountant.
Tally 9

Financial Accounting: It is the original form of accounting. It is mainly confined to the preparation of financial statements for the use of outsiders like creditors, banks and financial institutions etc. The chief purpose of financial accounting is to calculate profit or loss made by the business during the year and exhibit financial position of the business as on a particular date. Cost Accounting: Function of cost accounting is to ascertain the cost of the product and to help the management in the control of cost.

Tally 9

 Management

Accounting or Managerial

Accounting: It is accounting for management. i.e., accounting which provides necessary information to the management for discharging its functions. It is the reproduction of financial accounts in such a way as will enable the management to take decisions and to control various business activities.
Tally 9

 The

main purpose of financial accounting is to prepare financial reports that provide information about a firm's performance to external parties such as investors, creditors, and tax authorities. Financial accountingis performed according to Generally Accepted Accounting Principles (GAAP) guidelines.The primary accounting professional association in the U.S. is the American Institute of Certified Public Accountants (AICPA).

Tally 9

Businesses have two primary objectives: Earn a profit Remain solvent Solvency represents the ability of the business to pay its bills and service its debt. The four financial statements are reports that allow interested parties to evaluate the profitability and solvency of a business. These reports include the following financial statements: Balance Sheet Income Statement Statement of Owner's Equity Statement of Cash Flows 9 Tally

Double Entry Accounting Financial accounting is based on double-entry bookkeeping procedures in which each transaction is recorded in opposite columns of the accounts affected by the exchange. Double entry accounting is a significant improvement over simple and more error-prone single-entry bookkeeping systems. Fundamental Accounting Model The balance sheet is based on the following fundamental accounting equation : Assets = Liabilities + Equity(owners) This model has been used since the 18th century. It essentially states that a business owes all of its assets to either creditors or owners, where the assets of a business are its resources, and the creditors and owners are the sources of those resources.

Tally 9

Step1 Journal : Transactions on daily basic are first recorded in book known as journal. Step 2 Ledger : Than these transactions are grouped by transferring to concerned accounts known as ledger accounts. The process of transfer is known as posting. Step 3 Trial balance : At the end of period ledger accounts are balance and a summary is prepared known as trial balance Step4 Profit & Loss : From trial balance the profit and loss is ascertain by preparing final statements.

Tally 9

 Step

5 Balance sheet : After that balance sheet is prepared which is the statement that shows the value of assets and liabilities as on a particular date Step 6 Continuity : The balance of Balance sheet carried forward to next year and whole process repeat for the year.
Tally 9

10

 Keeping

systematic records Protecting properties of the business Communicating the results Meeting Legal Requirements To ascertain the financial position of the company To facilitate rational decision-making

Tally 9

11

 Recording Classifying Summarizing Analyses

and Interprets Communicates Protection of the business property

Tally 9

12

 Maintenance

of business records Preparation of final statements Helps in comparison of results Helps in decision making Good evidence in court Planning and control of operations Provides information to interested person Helps in raising loans Valuation of business Helps in complying taxation matters
Tally 9

13

 Ignores

non monetary items Based on estimates Personal influence Historical cost Fails to provide timely information

Tally 9

14

Accounting is based on 5 basic account types: Assets Liabilities Equity Income and Expenses Balance Sheet Accounts The three so-called Balance Sheet Accounts are Assets, Liabilities, and Equity. Balance Sheet Accounts are used to track the changes in value of things you own or owe. Assets is the group of things that you own. Your assets could include a car, cash, a house, stocks, or anything else that has convertible value. Convertible value means that theoretically you could sell the item for cash. Liabilities is the group of things on which you owe money. Your liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time. Equity is the same as "net worth." It represents what is left over after you subtract your liabilities from your assets. It can be thought of as the portion of your assets that you own outright, without any debt.

15

 Income

and Expenses Accounts The two Income and Expense Accounts are used to increase or decrease the value of your accounts.
Income(Revenue)

is the payment you receive for your time, services you provide, or the use of your money. Expenses refer to money you spend to purchase goods or services provided by someone else.
Tally 9

16

 Debits

and Credits These are the backbone of any accounting system. Understand how debits and credits work and you'll understand the whole system. Every accounting entry in the general ledger contains both a debit and a credit. Further, all debits must equal all credits. If they don't, the entry is out of balance. Debits and Credits vs. Account Types
Account Type Assets Liabilities Income Debit Increases Decreases Decreases Credit Decreases Increases Increases

Expenses

Increases

Decreases
Tally 9

17

 Assets

= Debits Assets = Debit Assets = Credit

Liability

or Equity = Credit Debit

Credit Liability = Liabilty =

Revenue (equity) Credit Expenses (equity) Debit

Tally 9

18

Traditional Approach
Personal

Modern Approach
Capital Liabilities

A/c

Real

A/c

Assets

Nominal

A/c
Accounts

Revenue Expenses

Personal

Impersonal

Real

Nominal

Tally 9

19

 Personal

A/c Cr The Giver of money Dr The Receiver of money Real A/c Cr What goes out for business purpose Dr What comes in for business purpose Nominal A/c Cr The income and profit Dr All Expenses and losses
Tally 9

20

Capital : Money with which business is commenced. Amount invested in a business. Cr Increase Dr Decrease Liabilities : financial obligation of an entity. Amount payable to outsiders.(long term, short term) Cr Increase Dr Decrease Assets : Valuable items, which help in generating revenue in business. Resources and properties owned by entity. (Fixed, Current or floating assets, Tangible , intangible, wasting assets) Cr Decrease Dr - Increase Tally 9

21

 Revenue

: The amount actually received by selling the items in which the business normally deals in. Cr Increase Dr Decrease Expenses : Amount incurred to earn revenue. Cr Decrease Dr - Increase
Tally 9

22

Purchase : Any object purchased with the objective of reselling. Sale : Sale disposal of normally traded or manufactured items. Purchase return : When a business returns the purchased goods to the supplier for any reason. Sale return : When sold goods are returns the purchased goods to the supplier for any reason. Stock : Goods lying in the godown of businessman. Stock taking : the counting of number of items lying in the stock. Valuation : Assigning a value in terms of money to the goods lying in the stock. Tally 9

23

Debtors : Customers to whom goods are sold on credit are called creditors. Creditor : Person from whom goods are purchased on credit. Investment : Putting idle money in some revenue generating avenue. Bills receivable : If a debtor puts his signature on a written order it is said that the bill have been accepted by the debtor and it becomes bill receivable. Bills payable : In this the businessman puts his signature on a written order then it is said that the bill is accepted by the businessman. Overdraft : Excess money withdrawn from bank.
Tally 9

24

Drawings : withdrawing money from business for personal and household expenses. Reserves : Any amount set aside or appropriated out of the profits for future requirements. Discount : Set of allurement given to customers to pay promptly.(Cash , Quantity, Trade Discount) Sundry creditors : Current liabilities (service provider) Sundry debtors : Current assets (service receiver) Trial Balance : statement of debits and credits total or balance extracted from various accounts in the ledger.(total method, balance method) Balance sheet : Statement prepared to measure the financial position of a business on a fixed date.
Tally 9

25

 Types

of accounting software: Tally gold Multi user Tally silver Single user Tally ERP Online user (Advantage is if system crashes the backup lies at tally server) Tally educational If no license and serial key (two dates 1st and 2nd April to work on)
Tally 9

26

 Expand your business No need to hire specialized resources Blazing speed Unmatched stability Sheer power Real-time access to information Better cash flow and savings on interest Amazing accuracy Manage your future dealing with bad debtors

and persistent defaulters

27

Faster and error-free invoicing and data entry Identify products with high or low margins Avoid stocking excess items and ensure that you dont run out of essential stock Better planning and dramatic improvement in coordinate of your operations with reduced paper work Reduced cost and increased productivity Accurate information tracking quicker data entry and retrieval Get better understanding and analysis of performance levels for various periods and divisions Enjoy better planning and forecasting Save time and reduce paperwork

Tally 9

28

Title area

Horizontal button bar

Close button

Main Area

Calculator area

Bottom pane
Tally 9

Button bar
29

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. Title area contains the tally copyright and tally website link. Tally product type(tally gold, silver, bronze or educational) and tally serial number appears at the upper-right corner. Main area is separated into two sections, namely , the left-hand side and right hand side, left-hand side gives information of current period, current date and list of selected companies. Right-hand side display company information menu(create company, backup company or restore company).

Tally 9

30

Horizontal button bar contains Print (alt+p), Export(alt+e), E-mail(alt+m), Upload(alt+o), language(ctlr+l), keyboard(ctrl+k) and help(alt+h). Bottom pane contains version number, release details, current date(day, date, month and year), system time(hh/mm/ss) Close button in the upper right corner functions similar to the use of ESC. Calculator area is used for calculator functions. Activate by pressing(ctrl+n) Button bar to make the work easier and faster and vary from on screen to another .

Tally 9

31

 Help alt+h Select company F1 Shut company alt+F1 Select credit note voucher Gateway of tally ctrl+m Calculator ctrl+n Date F2 Period alt+F2 Company F3 Company info alt+F3 Features F11 Configure F12

ctrl+F8

Tally 9

32

Tally 9

33

Directory : the data path where you want the company to be created. Default directory path is c:/tally/data Name: Enter the name of the company whose books are being opened e.g. client company name. Mailing name and address : enter the mailing name field. It display the company name by default. The mailing name and address are picked up for inclusion in any report. 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. State : Select the appropriate state Pin code : Specify the pin code

Tally 9

34

 Telephone E-mail address

: used to email documents, reports and data from tally Currency Maintain : account only and accounts with inventory Financial year from : tally automatically considers 12 months from the date you give here as the financial year. Books beginning from : the date for books beginning from can be changed, in case of companies, which are incorporated in the middle of the year.
Tally 9

35

 Base

Currency Information- The currency in which accounts would be maintained, it varies from country and region. Base Currency Symbol. Formal Name-Full name of currency specified. Number of Decimal places. Show accounts in millions. Is Symbol Suffixed to Amounts. Put a space between Amount & Symbol. Symbol for Decimal portion. Decimal Places for Printing Amount in words. Tally 9

36

 Loading

a company : Automatically by tally Using the select company option Select company Tally displays Company name System-generated code for each company The financial year information
Tally 9

37

Main Area

Tally 9

38

Main Area The left side of the main area includes: Current period Currently loaded companies accounting period Current date Date of last voucher entry for the selected company List of selected companies displays the name of loaded company The right side of the main area includes: Creation of account master and importing master information Creating of accounting vouchers and importing transaction information Viewing and printing financial reports using the information given in the masters and transactions

Tally 9

39

 Go

to gateway of tally Select F3 : Cmp info (alt+F3) Select Alter and press enter : make necessary changes in the required fields To change the password if use security control is set to Yes: Enter the name of administrator Enter the new password Re-enter the password Enter the old password and accept
Tally 9

40

 Select

F3 : Cmp info (alt+F3) Select Alter and press Enter Select the company to be deleted Use Alt+D to delete. Tally will prompt for a confirmation on deleting the company Press enter to delete the company

Tally 9

41

 The

books of account of different companies belonging to the same management or owners are required to be consolidated to present the financial position of the group of companies as a whole. Creating a group of company A group of companies an be created only for companies that have already been loaded.
Tally 9

42

 1st

step : load the companies whose account is to be grouped. Select the companies using select cmp button. 2nd step : press alt+F3 or click create cmp and select create group company 3rd step : enter the name of the group company ,address and tax details and select the members of the group company from list of companies. Select end of list to complete the selection process
Tally 9

43

Tally 9

44

 To

shut a company is to unload it. It does not mean that you have deleted it. 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.
Tally 9

45

 Configuration

is to be done before creating and starting work on a company Press F12 or configure button General

Tally 9

46

 Country
Style

details

of names(name/alias etc) Styles of date(indian(yymm-dd), american(mmdd-yy),etc) Configuration of numbers Graphs in monthly reports
Tally 9

47

Show inventory detail Show table of bills details for selection Show bill-wise detail Expand into multiple lines Current show ledger balances Show balance as on voucher date Use payment/receipt as contra Allow cash accounts in journals Use cr/dr instead of to/by entry Warn on negative cash balance Pre allocate bills for payment Allow expenses/fixed asset in purchase vouchers Allow income accounts in sales vouchers

Tally 9

48

 Printing

option allows you to configure printing of voucher, invoice and statement layouts The general configuration is applicable for all print reports

Tally 9

49

 Payment

/receipt/journal vouchers, credit note/debit note

Tally 9

50

 Confirmation

statements serve to confirm customers, suppliers, lenders, borrowers.

Tally 9

51

 To

create a group or ledger Go to gateway of tally > account info > group or ledger

Group

Single group : useful when you want to work on one group Multiple group : useful when you are working on many sub groups at a time and saves lot of time
Tally 9

52

Create : used to create new masters Display : used to vies the master information Alter : used to view and make necessary changes to master information The reserved primary groups and sub-groups: Capital accounts Reserves and surplus[retained earnings] Current assets Bank accounts Cash-in hand Deposits(asset) Loans & advances(asset) Stock in-hand Sundry debtors Tally 9

53

Current liabilities Duties and taxes Provisions Sundry creditors Fixed assets Investments Loans(liability) Bank OD Account[bank OCC Account] Secured loans Unsecured loans Suspense account Miscellaneous expenses(asset) Branch/divisions Sales account Purchase account Direct income Indirect income Direct expenses Indirect expenses Tally 9

54

Capital Account : This records the capital and reserves of the company. Reserves and surplus : This contains ledger like capital reserves, general reserve, reserve for depreciation. Current assets : those asset that do not belong to bank account or cash-in-hand a) Bank accounts : current account, savings account, short term deposit accounts b) Cash-in-hand : cash a/c is created c) Deposits : Fixed deposits, security deposits d) Loans & advances : All loans given by the company and advances of non-advances of a non-trading nature e) Stock-in-hand : raw materials, work-in-progress and finished goods

Tally 9

55

Current liabilities : outstanding liabilities, statutory liabilities and other minor. a) Duties and taxes b) Provisions c) Loans Bank OD accounts a) Bank OCC a/c : to record companys overdraft accounts with banks

i. ii.

Secured loan Unsecured loan

Suspense account : to track the money paid or recovered a) Loans and advances (asset) group Miscellaneous expenses(asset): legal disclosure requirements
Tally 9

56

Branch /division : to maintain ledger account of all your companys branches, divisions, affiliates, sister concerns, subsidiaries. Sales Account : domestic sales, export sales Purchase account Direct income : non-trade income (professional fees) Indirect income : rent received, interest received Direct expenses : manufacturing or direct trading expenses Indirect expenses: transfer of profit, loss account to capital or reserve

Tally 9

57

 Gateway

to tally>account info>group>create

Name Alias

of group

Under

: sub classification under existing group Nature of group : additional information

58

 Group

behaves like sub-ledger Net debit/credit balance for reporting Used for calculation Method to allocate when used in purchase invoice

Tally 9

59

 Gateway

of tally>accounts info>group>alter Select the group to be deleted Press alt+D to delete

Tally 9

60

 Ledger

is actual account head to which you identify transaction. In tally, you pass accounting vouchers using ledgers. All ledgers are classified under group Gateway to tally>accounts info>ledger

Tally 9

61

 Gateway

of tally>accounts info>ledger>create(single ledger)

Tally 9

62

 Name Alias Under

: name of account

: classification under appropriate group. To create new group alt+C Opening balance : it is applicable when ledger is asset or a liability and if it has a balance in the account as on the date of beginning of books Maintain balance bill by bill : if you wish to give a bill-by-bill breakup of ledger balance for sundry creditor or debtor including opening balance
Tally 9

63

 Date Name

: bill no or document no. Due date : Date when bill is due Amount : Inventory value effected : applicable when only if your accounts are integrated with inventory(sales , purchase)

Tally 9

64

 Display

ledger : gateway of tally>accounts info> ledger>display Altering ledger : gateway of tally > accounts info> ledger > alter Deleting ledger : go to ledger altercation screen and press alt+D

Tally 9

65

 The

vouchers are used for recording various transaction. Payment voucher is used for all types of payments, a receipt voucher for all types of money receipts, a sales voucher for recording sales transactions, and so on. The predefined voucher types can be displayed by: Gateway of tally>display>list of accounts> ctrl+V Tally 9

66

 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 Two types of voucher entry Accounting vouchers Inventory vouchers
Tally 9

67

Payment voucher : payment related transactions Receipt voucher :transaction accounting for money received Contra voucher : transfer of funds

Cast account to bank account Bank account to cash account Bank account to bank account

Sales voucher :

Sales orders Sales vouchers/invoices Delivery notes Rejection in

68

Purchase voucher

Purchase order Purchase vouchers Goods receipt notes Rejection out

Journal voucher

69

 Creating

accounting vouchers in tally Gateway of tally>accounting vouchers Default voucher entry screen is payment voucher screen

Tally 9

70

 Voucher

number : it is set automatic in voucher entering screen Reference : purchase order no. or invoice no. Narration : to type any comment
Common narration Single narration
Particulars

to/by or dr/cr
Tally 9

71

Buttons in voucher entry screen

F2 : date F3 : company F4 : contra F5 : payment F6 : receipt F7 : journals F8 : sales F9 : purchase F10 : memos F7 : stock journal F10 : phys stock F11 : features F12 : configure

Tally 9

72

 You

can either alter the existing sales voucher type or create a new voucher type based on sales Gateway of tally > accounts info > voucher types > alter Select any voucher type say sales Go to the field name of class and enter a name In next screen you can define the default accounting allocations for sales invoice and the default accounting allocations for purchase invoice( ledger name, percentage amount, rounding method and limit)
Tally 9

73

As additional excise : In Indian sub-continent, a manufacturing tax or excise is levied. As Flat Rate : To specify a standard mark-up/down on an invoice. As surcharge : To calculate the value based on the immediately preceding figure. As total amount rounding : To create an account which would carry the rounding difference. As user defined value : used when basis of calculation is neither value nor quantity dependent. Based on quantity : Used for calculating that is based upon total qty supplied. On current sub total : taxes applicable on total goods value as well as supplementary charges like excise duty, packaging charges. On item rate : Used for both VAT as well as excise duty style calculation. On Total Sales : Uses the sum of stock items used in the invoice for calculation. Tally 9

74

 Used

for entering fund transfer where net inflow and outflow are equal i.e. net effect is zero. Groups : Cash-in-hand, bank accounts and bank OCC. Transactions to be entered in contra voucher: Cash deposit into bank Cash withdraw from bank Cheque of one bank deposited to another bank Cash given to/received back from petty cash
Tally 9

75

Press F4 at the voucher entry screen

Background color of voucher screen : white Entry rule: The first entry is always credit. From 2nd entry onwards you can select Dr or Cr. Ledger accounts pop-up would display only ledger placed under cash, Bank account and bank OCC
Tally 9

76

 Payment

voucher : All transaction related to payment (by cash or bank) are recorded in payment voucher. Dues to creditors, Loans/Advances given by you or repayment of loans/advances.

Tally 9

77

 Press

F5 at the voucher screen to make payment voucher Background color of voucher screen : Yellow Entry Rule : The first entry is always debit and second entry onwards you may specify debit or credit . You can make multiple entries in single voucher .
Tally 9

78

 All

inflow of money (in cash or through bank) is recorded through receipt voucher. Through debtor or loans/advances taken or refund of loans/advances given earlier.

Tally 9

79

 Background

color of voucher screen :

green Entry rule : first entry is always credit and second entry onwards you can specify dr or cr. You can also enter the fund transfer entry in a reciept voucher if you activate the option payment/receipt voucher as contra.
Tally 9

80

 Used

for non-cash transactions like adjustment between ledger accounts. Press F7 at voucher screen to enter journal voucher Background color of voucher screen : yellow Entry rules : One account may be debited and another account may be credited. There is no restriction of number of debits & credits, provided the total of debits is equal to total of credits
Tally 9

81

Tally 9

82

 All

purchase transactions are entered in purchase voucher (including cash purchase). Cash purchase entry will automatically appear both in purchase register and in cash book. Press F9 at voucher entry screen to enter purchase voucher Background color of voucher screen yellow
Tally 9

83

 All

sales transaction is entered in sales voucher, entry would automatically appear both in sales register and in cash book. Press F8 at voucher entry screen to enter sales voucher Background color of voucher screen green Entry rule : The first entry must be debit involving any debtor. Second entry should be credit to a ledger placed under sales account group
Tally 9

84

Tally 9

85

 If

you set the option use debit/credit notes as yes F11 feature. You can select this voucher on clicking F7 or F8 Basically credit note is entered to credit party account, when buyer returns some goods that are sold to him or when you grant him credit or discount/rebate. Entry rule : first entry must be credit involving any debtor. Second should be debit to a ledger. Tally 9

86

 Can

be selecting by choosing F7 and F9 It is entered to debit party account. When you make purchase return or have short billed a customer or your supplier. Background color is yellow Entry rule: first should be debit involving any creditor. Second a credit to a ledger placed under purchase.
Tally 9

87

 Gateway

of tally>accounts info>voucher type>create

Tally 9

88

 Type

of voucher Abbreviation Method of voucher entry Use effective date for voucher Use common narration Narration for each entry Printing Voucher class
Tally 9

89

 Security

control Two default security levels: Owner Data entry

Tally 9

90

 An

enhanced security system which allows for encryption of the company data. Encryption involves converting normally accessible Tally information into unrecognizable information. Gateway of tally>Cmp info>Create/Alter company Set use security control to Yes

Tally 9

91

 To change tally vault password of a company: Select Gateway of tally> F3:Cmp Info>

Change Tally vault Tally Audit feature: Provides capability to the administrator/auditor to track changes in the accounts following his previous review. To use this facility select yes against using audit feature in company creation screen. To view the audit list go to display>Statement of accounts>Tally audit

Tally 9

92

 Backup

Tally can take backup of the data from virtually any storage medium into any other medium(floppy drive, hard drive, zip drive, tape drive etc.) Gateway of tally>F3: cmp info>backup

Tally 9

93

 Restore

Tally allows restoring of data from medium into any other storage medium.
Budget

They are used to set targets and compare against actuals and get variances Gateway of tally>Account info >Budgets>Create Tally 9

94

 Special

vouchers used to record provisional or non-conventional transactions. Memo voucher : This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts.

Tally 9

95

 Optional

voucher It is a non-accounting voucher, it is not a separate voucher type, you can make an existing voucher as optional Gateway of tally>Account info>voucher types>select a voucher type>set make optional as default to yes Enabling optional voucher Gateway of tally>F11:features>Accounting features>set use rev. journal & optional vouchers to yes
Tally 9

96

 Reversing

journals Special journals that are automatically reversed after a specified date. They exist only till that date and are effective only when they are included in reports like balance sheet.

Tally 9

97

 Post

dated voucher registry All post dated vouchers are maintained in a post-dated voucher register Go to gateway of tally > Display> Exception reports> post-dated vouchers Difference with unconventional voucher: Post-dated voucher effect regular books of account. Post-dated entry can be done through account voucher entry Tally 9

98

A Cost Centre is unit of an organization to which transactions can be allocated. When only cost or expenses are allocated to these units, they are called cost centres. When profits are allocated they become profit centres. e.g.. Department Product Individual To activate : F11:Features > Accounting Features > maintain cost centres to yes Create new account centre : Goto Accounts info> cost centre > single cost centre> create

Tally 9

99

Facilitate to allocate to multiple cost centres in parallel. For example a company may allocate an amount independently to salesman, product & agents. Create cost categories : goto account info> cost category> single cost category> create Example: Create the cost categories named department, executives and project Create three cost centres named marketing, manufacturing and finance under cost category department. Create three cost centres salesman A, salesman B, salesman C under cost category executives. Create three cost centres airport, roads and building under category project.

Tally 9

10 0

 Applying

cost centre to ledger: Goto gateway of tally> account info> ledgers> alter > select the ledger conveyance set cost centre are applicable to yes Cost centre allocation in voucher entry: Goto gateway of tally> accounting vouchers >F5 : payment
Tally 9

10 1

The purpose of compiling data is to present it in comprehensible accounting reports. Features in reports: Drilldown : press entre at any record to drill down step by step Voucher in alter mode : insert/ alter/ delete/cancel vouchers Track able : press esc key to go back Display details : to explode a record press shift+enter same to collapse. Master alteration : to alter ledger/ group/ voucher press ctrl+enter. Hide report lines in display : press alt+r key on the record to be hidden Restore report lines in display : press alt+u key Restore all hidden lines in display : press ctrl+u key

Tally 9

10 2

Gateway of tally> display Tally reports are classified into two major areas accounting reports and inventory reports. Each area is further grouped into books and statements Trial balance : provides you a report on account balances sorted by groups, for all the accounts of the selected company. The day book : contains all vouchers for the day, including inventory vouchers. Account books : it is used to display cash/bank books, all entries pertaining to a ledger, group summary, group vouchers, register details as sales, purchase and journal.

Tally 9

10 3

 Statement

of accounts : these pertain to cost centres and outstanding analysis. The cash and fund flow : it has two types cash flow i.e. inflow and outflow of clash and current assets, fund flow for inflow and outflow capital. List of accounts : gives the tree structure of all your masters, namely, groups, ledgers, stock items, cost centres, currencies, etc. Exception reports : are those reports that track unusual transactions or balances. E.g.. Negative ledgers, negative stocks etc.
Tally 9

10 4

 Books

of accounts record the transaction details as entered. For example, cash book records all transaction affecting cash and sales book records all sales transactions. Display>account books>cash/bank books Select the bank account>press enter to display ledger monthly summary>highlight a month>press enter to display ledger voucher screen
Tally 9

10 5

Tally 9

10 6

 Financial

statements: show summary totals, ratios and statistics, analyzing a companys financial data in a wide variety of ways. Includes balance sheet, Profit & lost A/c, and cash flow analysis. Accounts reconciliation statement : shows flow of accounts from opening balance to the effect of transactions on closing balance. E.g. Trial balance Select f12:configure set opening balance parameter to yes
Tally 9

10 7

Tally 9

10 8

 Day

book : List all transactions made over a particular day and by default displays last voucher entry. Gateway of tally>display>daybook Press f2:period or alt+f2: to list all transaction over a period F4: chg vch : to select a particular voucher

Tally 9

10 9

Tally 9

11 0

 Sales

register(sales day book) Gateway of tally>display>accounts book>sales register By default, all registers display monthly summary of transactions and closing balances Press enter to see sales voucher register

Tally 9

11 1

 Columnar

sales register Select the option F5: columnar from the button bar, in sales voucher register screen. Then select the type of column from the screen

Tally 9

11 2

 All

items(automatic columns)

Chg

Vch : use this option to view a different register from within existing register
Tally 9

11 3

 Registers

for statistics : drill down a specific type of voucher to view details Gateway of tally>display>statements of account>statistics

Tally 9

11 4

 Group

summary : gateway of tally>display>Account books>group summary>group name e.g. duties and taxes. Shows the closing balances of accounts falling under the selected group over a period. To view led-wise display of group summary . Press F5:Led-wise, toggles with grouped
Tally 9

11 5

 List

of vouchers Ledger vouchers: List of voucher for current month. Gateway of tally> display> Account book >ledger>ledger account Ratio Analysis The Stock summary : It is the statement of stock-in-hand on a particular date and get updated every transaction. Gateway of tally>stock summary
Tally 9

11 6

 The

ratio analysis statement : Is a single sheet report indicating companys performance based on values and key indicators, over a selected period and companies financial condition. Screen divided into two parts: Principal Groups: key figures Principal Ratios: two pieces of financial data to obtain a comparison

Tally 9

11 7

 Cost

category summary displays information on all cost categories to which you have allocated the voucher transactions. Gateway of tally> display> statements of accounts> cost centers> category summary

Tally 9

11 8

 Receivables

: It displays all outstanding receivables invoice by invoice till date. It only considers those accounts that have Bill-by-Bill option activated. Gateway of tally>Display>Statements of accounts> Outstandings >receivables Press F12: Configures bill-wise outstanding report
Tally 9

11 9

Negative Ledger: Accounts that have obverse balances, i.e., that are opposite to the nature of account. Gateway of tally>display>Exception Reports>Negative ledgers Overdue Payables: List of purchase bills that are overdue as on current date Gateway of tally>display>exception reports>overdue payables. Press F6 : Age-wise analysis(bill date or due date) We can produce reminder letter from ledger outstanding report. Click the print from the button bar

Tally 9

12 0

Balance sheet and P&L A/C : Configuring: Show vertical balance sheet British/Europe configure has liabilities and assets Indian/Asian configure display source funds and application of fund Method of showing the balance sheet Liabilities/assets Assets/liabilities Format of balance sheet : horizontal/vertical Columnar balance sheet : for a different date to compare with current one Show quarterly balance sheet Show gross profit set to yes F11 : features : can set Income/Expense statement instead of P & L Tally 9

12 1

 Gateway of tally of an account with inventory Inventory information : The menu lists the

masters, through which you can provide Tally the details of your companys inventory. Integrate account with inventory : If account with inventory is set to yes the stock/inventory balance figure is updated with the inventory records. If the option account with inventory is set to No the inventory books are ignored closing stock balance is entered manually.
Tally 9

12 2

 Inventory

info contains following masters: Stock group Stock categories Stock items Godowns Budgets Voucher types Units of measure
Tally 9

12 3

 Stock

group : are similar to group in accounting masters. They are helpful in the classification of stock items. They enable easy identification and reporting of stock items in statements. Gateway of tally> Inventory info>Stock Groups>create
Tally 9

12 4

 Stock

Categories : Similar to cost categories. Offers the benefits of classifying an item in another dimension. Option becomes available if you set maintain stock categories to yes in F11: feature Allows parallel classification of stock items. You can create categories like floppy disk and floppy drives. Stock query option in statements of inventory display the strength og stock categories
Tally 9

12 5

 Using

Multiple stock category you can use the following masters : Groups Items Godowns Units of measure : stock items are purchased or sold on the basis of quantity. You need to create units of measure for all the stock items Gateway of tally>Inventory Info>Units of measure>create
Tally 9

12 6

Tally 9

12 7

 Stock

item : Gateway of tally>Inventory info>Stock item>Single create

Tally 9

12 8

 Godowns/Locations

: It is the place to store goods which may be a warehouse, rack,shelf,bin or anything. Same as process/ contractor/ third party job worker. To switch on godown management : F11 > Inventory features Gateway of tally>Inventory info>godowns>create
Tally 9

12 9

Tally 9

13 0

 Price

List : Useful for order and invoices. An up-to-date price list helps in decision making even at lower levels of the organization and quickens sales process. Creating Price Levels : F11:features > Inventory features Allow Invoicing set to yes Use multiple price levels to yes Type out the price levels, one by one in company price levels
Tally 9

13 1

 Assigning

ledger accounts to price levels You can choose the price level that you want to assign to the ledger by selecting the price level from the price levels list in the pricing level applicable field.

Tally 9

13 2

levels in voucher entry Invoicing You can configure the entry so as to prevent the usage of a different price list than the one that is set. Gateway of tally> F12:Configure> Invoice/orders Entry Example : gateway of tally> accounting vouchers> F8:Sales
Price
Tally 9

13 3

 Reorder

levels : signify the quantity of a stock item in hand, after reaching which you must place order for supply. The points to consider while deciding the reorder levels: Lead-time for suppliers to deliver the stock Delivery time specified Stock in hand to satisfy orders Gateway of tally>inventory info>reorder levels To enable this option : allow purchase order processing enabled by F11: feature

Tally 9

13 4

Tally 9

13 5

 Obtain

reorder status : gateway of tally> display> statements of inventory> reorder status

Tally 9

13 6

 Inventory

vouchers perform the same function in the inventory system just as accounting vouchers. If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the balance sheet stock figures. Gateway of tally>Inventory vouchers Set the option integrate account and inventory to yes in F11:feature
Tally 9

13 7

Five kinds of inventory vouchers: Receipt notes and delivery notes Rejection in and rejection out Sales order and purchase order Stock journal Physical stock Enabling F11 :feature Set use tracking number to yes to activate delivery note and receipt note voucher Set use rejection notes to yes to activate rejection in and out vouchers Set allow purchase order processing and allow sales order processing to yes to activate purchase order and sales order vouchers

Tally 9

13 8

 Receipt

note voucher : used for recording goods received F9:rcpt voucher Details recorded : Reference, ledger account, suppliers name, address and dispatch details, name of stock item, tracking detail, godown, quantity, rate, amount, narration
Tally 9

13 9

 Rejection-In

voucher( sales returns) and Rejection-Out voucher(purchase returns) : record goods that are rejected or returned by the customer Rejection-In :Ctrl+F6, records return of goods from customer Detail recorded : Ledger account, customer name, address supplementary detail, name of stock item, tracking detail, order detail, amount, narration Tally 9

14 0

 Rejections

out voucher : records goods that are rejected and returned to supplier Alt+F6 Details recorded : Ledger account, suppliers name, address, and dispatch, name of stock item, tracking details, order details, godown , quantity, rate, amount, narration
Tally 9

14 1

 Stock

journal voucher : record stock transfers from one location to another Alt+F7: Stk Jrnl Details recorded : Reference, name of source and destination location, name of stock item, godown, batch, quantity, rate, amount, narration

Tally 9

14 2

 Bill

of material : list of constituent items along with quantity details that can be allotted towards manufacturing a certain product, by-product or likewise. Can be used by manufacturing organizations. Gateway of tally> F12:configure> Accts/ Inv info >set allow component list details( bill of materials) to yes
Tally 9

14 3

 Creating

a manufacturing journal Gateway of tally> Inventory info> voucher type>create

Tally 9

14 4

 Creating

a bill of material (bom) is created only for those items that are being assembled in-house. Gateway of tally> Inventory info> stock item>create

Tally 9

14 5

 Order

processing : is placing of order with suppliers for purchase to be made from them or receive orders from customers for the purpose of selling. In tally, order processing is linked to inventories, allowing tracking of order position for stock item. Allow purchase order processing and allow sales order processing to yes Gateway of tally> display>day book Tally 9

14 6

 Creating

sales order : exactly like purchase order entry. Also depends upon configuration settings Gateway of tally> inventory vouchers> F5: sales order

Tally 9

14 7

 View

order position : view the order position in stock summary Gateway of tally> stock summary> F1:detailed

Tally 9

14 8

 Physical

stock voucher is used for recording actual stock which is verified or counted. It could happen that the book stocks and the physical stock do not match. Gateway of tally>inventory voucher> F10:phys stk

Tally 9

14 9

 Invoicing

or sales invoicing is almost similar to sales voucher entry. You will use the same voucher but select as invoice option to turn it into a sales invoice. Purchase invoices are recorded through normal purchase voucher entry and it does not have provision of being converted into an invoice format for every purposes. Advantage is that it enables automatic calculation of taxes and duties. You can print your invoices
Tally 9

15 0

 Allow

invoicing is set to yes in F11:Feature to create sales invoice. To create purchase invoices, ensure allow invoicing is set to yes and also enter purchase in invoice format is set to yes in F11:feature Gateway of tally>accounting vouchers Set show inventory details to yes in F12:configure Under the group sales and purchase accounts, ensure inventory values are affected is set to yes
Tally 9

15 1

 Configuring Gateway of

invoice tally>accounting vouchers>F8:Sales/F9:Purchase F12:Configure Complete accounting allocation in order/delivery notes set to Yes Allow modification of all fields during entry set to yes Printing invoice : gateway of tally>F12:configure>Printing>Sales Transactions>Sales Invoice
Tally 9

15 2

Tally 9

15 3

 Voucher

class for stock journal Stock journal allows you to handle transfers from one location(godown) to another, for companies having multi-location inventory and at least two locations/godowns created Account info>voucher types>create Select stock journal voucher from the list of voucher types To create a stock journal voucher class, enter a name of class field To create a class for inter-godown transfer set use class for inter-godown transfer to yes
Tally 9

15 4

 Stock

summary: statement of stock-inhand as on particular date. It is updated at every transaction in real and provide the current stock position. Gateway of tally>stock summary Stock summary configuration: F12:configure Displays the flow of stock: opening balance, goods inward, goods outward, closing balance
Tally 9

15 5

 Stock

item: monthly summary of stock item Display>inventory books>stock item Group summary: summary of stock group Display>inventory books>group summary Sales order book: details to sales order placed Display>inventory books>sales order books Purchase order books : details of all purchase order placed Display>inventory books>purchase order books Stock transfer : stock journal register which shows monthly movement of stock.
Tally 9

15 6

 Stock

valuation method: can be used to view effects of different methods on the value of stock. Set up to have a different stock valuation method. Stock summary>new column button

Tally 9

15 7

 Analysis

of inventory movement: generally used for comparative study, where goods received but bills not received and goods dispatched but bills not raised are considered. Gateway of tally>display>inventory books>movement analysis Analysis is by stock movement, categories, financial group or ledger
Tally 9

15 8

 Movement analysis(stock group analysis) Displays the total inward and outward

movement of all items in a selected stock group. The quantities displayed are the actual quantities of movement. Item voucher analysis: This report gives the value details of all transactions for a selected stock item from a particular supplier or to a particular customer. Stock category analysis: Displays the movement of stock items of a selected stock category. The inward and outward movement of items are summarized.
Tally 9

15 9

 Transfer

analysis : gives the movement detail for each type of stock journal. This is a very useful costing and waste analysis tool

Tally 9

16 0

 Godown/location

summary: displays the stock summary for different godown/location. While main stock summary shows the stock position for the entire company on a particular date, the godown/location summary is a statement of stock-in-hand at each location on a particular date. Gateway of tally>display>statement of inventory>godown/location Press shift+enter to expand and collapse the group.
Tally 9

16 1

 Purchase

bills pending: Option is created when the option tracking number is set to yes in f12 features. It lists all the incomplete purchases where goods may have received, but not fully invoiced. Gateway of tally>display>statement of inventory>purchase bills pending Negative stock : report displays a list of stock items that have a negative closing balance at the end of a specified period. Gateway of tally>display>exception reports>negative stock
Tally 9

16 2

 Ageing

analysis report :generated on the basis of bill break up performed for the vouchers entered for a particular customer or supplier. It helps you to know all the outstanding or unclear vouchers of that customer or supplier. It is applicable only if batchwise stock is maintained. Display>inventory books>ageing analysis Press f6 for changing period Alt+s for changing ageing style Alt+b for expired batches only Alt+a to show/hide amounts
Tally 9

16 3

 Statutory

reports: the menu will appear depending upon statutory features enabled. F11 features>statutory and taxation

Tally 9

16 4

Concept of VAT: Value added tax(VAT) is based upon the value addition to the goods and the related VAT liability of the dealer is calculated by deducting the input credit from the tax calculated on sales during the payment period. VAT works in two different ways: 1. If VAT registered business receives more output tax than the taxes paid as input, they will need to pay the difference to the commissioner of taxes. 2. If the input tax paid is more than the output tax collected, you carry forward the input credit and adjust it with the output tax, input credit is refunded to you by the government, you receive refunds for input credit on exports within a period of three months

Tally 9

16 5

 General

terms: Input tax: tax paid on purchase Output tax: tax charged on sales Input credit: amount of input tax that is permitted to be set off against output tax Composite dealer: dealer with annual gross turnover not exceeding a certain threshold can opt for a composition scheme whereby they will pay a tax as small percentage of their 9gross turnover Tally

16 6

VAT Rates: VAT @4% : Largest number of goods comprising basic necessity items such as drugs and medicines, agricultural, industrial inputs, capital goods are declared under 4% VAT category. Exempted from VAT : 46 commodities under the exempted category, includes natural and unprocessed products in unorganized sectors as well as items. VAT @1% : Goods like gold, silver etc.\ VAT @12.5% : few goods like liquor, lottery ticket, petroleum products, as the prices of these are fully market-determined.

Tally 9

16 7

 VAT 1. 2. 3. 4. 5. 6. 7. 8.

in tally: It supports following features: Quick and easy setup Fast and error free voucher entry Pre-defined list of sales and purchase classification Complete tracking of each transaction Pricing of tax invoice VAT computation report Better VAT return management Monthly return
Tally 9

16 8

 Gateway

of tally>account info> f11 feature>statutory & taxation> set enable value added tax and set/alter VAT detail to yes Set/alter VAT details to yes will prompt with VAT details screen

Tally 9

16 9

VAT classification : list of VAT rates which describe the nature of the business activity and the type of transaction. Input VAT @4% Input VAT @1% Input VAT @12.5% Output VAT @1% Output VAT @4% Output VAT @12.5% Purchase-capital goods Purchase-Exempt Purchase from unregistered dealers Depending upon the type of business, type of transaction, and the statutory requirements of your state, you will need to select the appropriate classifications from the list during ledger creation, voucher entries ,etc.

Tally 9

17 0

 Ledger

masters: VAT classification will be displayed as a dropdown list in the ledger master. The ledgers that are affected by VAT are: Purchase Ledger Sales Ledger Duties and taxes ledger Direct expenses/incomes
Tally 9

17 1

 Creating a purchase ledger for VAT Gateway of tally>accounts info>ledger>

create/alter Set used in VAT return to yes if you wish to select VAT/TAX class for this ledger. Tally gives the facility to the user to either have the classification selected in the ledger master or select different classification on each transaction. The rest of the ledger creation process is the same as in default tally.

Tally 9

17 2

Tally 9

17 3

Creating a purchase voucher(as invoice) for VAT : As item invoice the selection and display of VAT classification in the vouchers differ according to the settings in F12:configuration screen Use common ledger A/c for item allocation when set to no, you can see the VAT/TAX class at the header region of the screen. Set this to yes when you want to use common ledger for all items. Allow selection of VAT/TAX during entry when set to no VAT/TAX class will not be displayed in the voucher screen and the classification will be taken from the ledgers

Tally 9

17 4

 Printing

configuration : F12:configure> printing>purchase transaction>purchase voucher Enable the column print VAT% column rate of VAT and VAT classification is printed Enable VAT analysis to print VAT amount on the total net value.

Tally 9

17 5

 Payment

of VAT in Tally: The journal and payment voucher entries for the payment of VAT are used Journal entry

Tally 9

17 6

 Payment

voucher :

Tally 9

17 7

 Purchase

return-debit note:

Tally 9

17 8

 Sales

return-credit note

Tally 9

17 9

Tally 9

18 0