Accounting Vouchers - ICST Institute · Accounting Vouchers Memo Voucher ... For example, if you...

Accounting Vouchers

Accounting VouchersSession -2

VouchersIn computerized accounting, we record transactions through voucher entry. A voucher is abasic recording document. To input any data in Tally you must use a voucher. Inputting datathrough the voucher entry mode may be called creating a voucher or voucher entry.Tally is pre-programmed with a variety of accounting vouchers, each designed, to perform adifferent job.Tally gives us two types of voucher:

1. Conventional2. Unconventional

Conventional VouchersConventional vouchers are used to record all accounting transactions. These vouchers directlyaffect to your final Account. It tally we have different types of conventional vouchers:

Types of voucher (Conventional):Vouchers Shortcuts FunctionsContra F4 To Create A Contra VoucherPayment F5 To Create A Payment VoucherReceipt F6 To Create A Receipt VoucherJournal F7 To Create A Journal VoucherSales F8 To Create A Sales VoucherPurchase F9 To Create A Purchase VoucherDebit Note Ctrl+F9 To Create A Debit Note VoucherCredit Note Ctrl+F8 To Create A Credit Note Voucher

Selection of Voucher at the time of transaction:We give you a visual guideline to decide appropriate voucher type that is suitable torecord the transaction:

Contra Voucher (F4)Contra voucher is for entering Fund transfer Transactions where net inflow andoutflow are equal, i.e. net effect is Zero. In contra voucher you can enter transactionbetween cash and bank. As per accounting rules, Contra Entry is a transactionindicating transfer of funds from:

1. Cash account to Bank Account2. Bank account to Cash account3. Bank account to Bank account

Payment Voucher (F5)All transaction related to payment (by cash or bank) are recorded in paymentvoucher. Such payments can be towards purchases, expenses, acquisition of fixedassets, dues to creditor, loans/advances given by you or repayment ofloans/advances taken by you earlier etc.Receipt Voucher (F6)

All inflow of money (in cash or through bank) are recorded through receipt voucher. Suchreceipts may be towards any income or from your debtors or loans/ advances given earlier etc.The voucher is similar to the payment voucher except that you debit cash or bank A/cs andcredit the ledger form which you receive.

Journal Voucher (F7)Journal entries are used in instances where the company requires adjusting the debit and creditamounts without involving the cash or bank accounts. Hence, they are referred to as adjustmententries.

Sales Voucher (F8)Any sales transaction (whether for goods or Services) are entered in sales Voucher. In case ofcash sales, you receive payment immediately by cash or by cheque or credit card and since youdo not require to track outstanding (as payment has already been received so there is no need tocreate a separate ledger for the buyer who has paid immediately).Note: All Credit sales transaction is entered in sales voucher.

Purchases Voucher (F9)Any purchases transaction (whether for goods or Services) are entered in Purchase Voucher. Incase of cash Purchases, you make payment immediately by cash or by cheque or credit cardand since you do not require to track outstanding (as payment has already been made so there isno need to create a separate ledger for the seller who has paid immediately).Note: All Credit Purchase transaction is entered in Purchase voucher.

Debit Note (Ctrl+F9)By default Debit Note voucher would not be available. If you make entry in debit Note thenyou have to active this option from F11 company Features. Normally a debit note is enteredwhen you make purchases return or have short-billed a customer or your supplier have grantedcredit to you on account of rate difference, discount etc.

Credit Note (Ctrl+F10)By Default Credit Note Voucher Would not be available. If you make entry in credit Note thenyou have to active this option from F11 company Features. Normally a credit note is enteredwhen you make sales return or discount/ Rebate or due to some reason now you like to squareoff a debit balance.

Unconventional VoucherThese special vouchers are used to record provisional or non-accounting transactions. Theydon’t clutter the main books of accounts with unnecessary entries and at the same time makethe information available. These vouchers enable valuable reports in terms of provisionalaccounts and forecasting. This aspect of reporting has been dealt with under a separate section‘Scenario Management’.Types of vouchers (Unconventional)Vouchers Shortcuts FunctionsMemos Ctrl+F10 To Create memorandum voucherRev Jrnl F10 To Create Reversing journal voucherOptional Ctrl+L To Make a voucher as Optional voucherPost dated Ctrl+T To Make a Voucher as Post Dated Voucher

Accounting Vouchers

Memo VoucherThis is a non-accounting voucher and the entries made using it will not affect your accounts.That is, Tally does not post these entries to ledgers but stores them in a separate MemorandumRegister.

Some uses for Memo Vouchers1. Making suspense payments2. Vouchers not verified at the time of entry3. Items given on approval

Reversing JournalReversing journals are special journals that are automatically reversed after a specified date.They exist only till that date and are effective only when called for in reports like the BalanceSheet. These are used in interim reporting in the course of the financial year where accruals arerequired to be reported. These accruals are usually short term and are cleared in the subsequentperiod. However, to get a proper perspective, decision makers require the reports with fullimpact of all aspects and transactions

Use of optional vouchers1. If a transaction has not been completed, you may not want it to affect the accounts.

But you want to record it so that you simply modify the voucher and remove the‘Optional’ mark by ‘Regular’ it. Display the voucher in ‘Alter’ Form and click on‘Regular’.

2. You might want to see the impact of transactions without actually posting them.Optional vouchers allow you to do this.

Post-Dated VouchersWhile entering vouchers, you can post-date them, an tally will not update the ledgers until thedate in question. This is most useful for entering transactions that take place on a regular basis.For example, if you pay for something by installments, you can set-up the payments inadvance, and tally will only enter them in the ledgers as they fall due. Mark vouchers ‘PostDated’ by [CTRL]+[D] or click on the button. The button toggles with ‘Regular’

Scenario ManagementScenario management is a management tool that enables different displays of accounts andinventory related information, by selectively including certain types of vouchers withoutaffecting the source date. It is useful in generating provisional report, where entries are notactually made in the main books. It is also a useful forecasting tool i.e. you can forecast theexpense using provisional Vouchers and include them in your reports.The vouchers that are used in Scenario Management are:

Optional VouchersMemorandum VouchersReversing Journals

Creating a ScenarioSet Use Reversing Journals & Optional Vouchers in F11: Company Features to Yes.Gateway of Tally→ Accounts Info→ Scenario→ Create

1. NameGive a suitable name to the scenario. In this case, it is Provisional.

2. Set Include Actual to Yes3. Set Exclude Forex Gains/Losses Calculations to yes if you do not want the

unadjusted forex Gains/loss element to appear in the scenario4. Set Exclude Inventory

Tracking Calculations to Yes if you do not want the sales/purchase bills pendingelement to appear in the scenario

5. IncludeFrom the list of vouchers, include the type of vouchers required. Notice that it picksup the voucher Types created for this company. Provisional vouchers and Regularvouchers that are marked Optional are permitted for selection.

6. ExcludeExclude from the list of vouchers already included in the type of vouchers that youdo not want to affect this scenario. This option is used in Alter mode and hence isdiscussed under Alter/Display scenario Information.

Accept to create this scenario.

Alter or Display Scenario information1. Gateway of Tally→ Accounts Info. → Scenario→ Alter2. Select the scenario to alter from the List of ScenariosThe information given while creating the scenario displays and you can alter it.

ExcludeUse the Alter mode when you do not want a selected included voucher to affect thescenario, anymore. It is easier to put the selected voucher in the Exclude List, rather than toremove it from the include List.Using ScenariosCreate a Reversing journal Entry for the scenario as follows.1. Gateway of Tally→ Accounting Vouchers→ F10:Rev Jrnl2. Select Reversing Journals from the list.3. Debit Depreciation and enter the amount4. Credit Provision for Depreciation5. Enter narration if any.6. Accept the voucher.

Accounting Vouchers

Using Scenarios in Statements and ReportsYou can use scenarios in statements (not registers) that have the New Column buttonactive.1. Display the Balance sheet.2. Select New Column.3. In the column details, tab down to Types of Values to show4. Select the scenario named Provisional.

Entering VoucherThe Voucher Entry Screen

The main voucher entry areaThis is where you enter your transactions this screen contains fields fo date, ledgername and amount as well as additional pop-up screens that are dependent upon yourvoucher configuration.

Direct commands areaDisplays the commands you type into this area, and in the current version of Tally, islimited to calculator functions.

Buttons toolbarDisplays buttons that provide quick interaction with Tally. Only buttons relevant to thecurrent task will be visible.

Switching between screen areasOn selecting Voucher Entry from the Gateway of tally, you are taken to the mainvoucher entry area. However, you may toggle between this and the Directcommands/calculator area at the bottom of the screen, by pressing [Ctrl]+[N]+[M] asindicated on the screen. The active area of the screen is highlighted by a green bar,

[Ctrl]+ [N] to go to the Calculator/Direct Commands area and [ctrl]+[M] for thevoucher entry area. Use calculator by [ALT]+[C] when in amount field.

Special Keys for Voucher Narration FieldALT+R: Recalls the last narration saved for the first ledger in the voucher, irrespective of thevoucher type.CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of theledger.

Contra Entry (F4):Gateway of Tally→ Accounting Vouchers→ SelectingF4: ContraExample:

Cash deposited into the bank Rs. 50000/-

Payment Entry (F5):Gateway of Tally→ Accounting Vouchers→ SelectingF5: paymentExample:

1. Rent Paid Rs. 5000/-2. Salary And Adv. Expenses paid Rs. 6500/-&

Rs. 2500/-3. Cash Purchases Rs.3000/-

Receipt Entry (F6):Gateway of Tally→ Accounting Vouchers→ SelectingF6: ReceiptExample:

1. Cash sales Rs.8000/-2. Comm. Received from Ram Rs.500/-3. Interest Received Rs.250/-from ICICI bank

Journal Entry (F7):Gateway of Tally→ Accounting Vouchers→ SelectingF7:JournalExample:Depreciation Machinery & Computer Rs. 1,250/- &Rs.480/-

Sales Entry (F8):Gateway of Tally→ Accounting Vouchers→ SelectingF8Example:Goods sold worth Rs. 5000/- to IFCA Trading Co. oncredit.

Accounting Vouchers

Credit Note (Ctrl+F8)Gateway of Tally→ Accounting Vouchers→ SelectingCtrl+F8,Example:Goods return worth form IFCA Trading Co. Worth Rs.450/-

Purchases Entry (F9)Gateway of Tally→ Accounting Vouchers→ SelectingF9,Example:Goods purchase worth Rs. 2500/- from king & Co. Oncredit.

Debit Note (Ctrl+F9)Gateway of Tally→ Accounting Vouchers→ SelectingCtrl+F9,Example:Goods return to king & Co. worth. Rs. 500/-

Exiercise

1. Pass the following transactions:2005April 5 Introduce furniture worth Rs. 15,000 for business.April 7 Received a cheque of Rs. 14,000 from Amar in full settlement of his

account.April 12 Amar’s cheque is dishonored and bank charged our account of Rs. 20 for

bank charges.April 15 paid Rs. 2,850 to Mohan in full settlement of his account.April 25 cash withdraw from the bank Rs. 5,000 for petty cash.April 30 Cash withdraw form the bank Rs. 500 for personal use and Rs. 1,000 for

office use.May 3 Paid wages 200, trade expenses 650, advertisment expenses 1,500 and

stationery expenses 275 from petty cash.May 10 Sachin was declared insolvent and a payment of 60 paise in a Rupee

received form him.May 16 Paid Rs. 4,000 and 3,000 to Shyam and Ram respectively.May 27 Received cheque from Nitin in full settlement of his account after allowing

his 5% cash discount and cheque deposited into the bank same day.May 29 Withdraw from bank Rs. 500 for personal use and Rs. 1,000 for office use.May 30 Purchase two computers worth Rs. 15,000(each) for resale from J.K.

computers.June 3 Payment made to J.k. Computers.

Hint: match the figure of Trial Balance 6,61,125.

Advance Accounting Features [F11]


Session -3

Advance Accounting Features [F11]The different features of a company can be selected or modified by F11 button. This button isavailable is available in almost all screens of tally as you might wish to modify it as yourrequirements change.

1. Accounting Features<F1>2. Inventory Features<F2>3. Statutory Features<F3>

Accounting Features<F1>

GeneralIntegrate Accounts with InventoryEffect on Balance Sheet and Profit & Loss AccountThe option in F11: Accounting Features>General has a significant effect on the BalanceSheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figuresfrom the inventory records and provides a drill down to the stock registers from the BalanceSheet.

Income/Expense Stmt instead of P&LAccount statements for Non-Trading organizations. For Non-Trading accounts like accounts for charitable organizations, thetrading and Profit & loss statement are irrelevant. They need andIncome & Expenditure Account. They should activate the featurein F11: Accounting Features>General and set the optionIncome/Expense Stmt instead of P&L to Yes.Note: The Profit & Loss Account is now displayed as Income & Expenditure Statement.

Multi CurrencyAllow Multi CurrencyFor many organizations, globalization of business has necessitated working with more than onecurrency. Transactions are often made in currencies other than the home currency. Suchtransactions have to be recorded either in the home currency or in the foreign currency. It they

are recorded in home currency, the rate at which the foreign currency is exchanged for thehome currency should be recorded as well. Sometimes you need to record the transaction inforeign currency itself. This would arise when you maintain the balance of the concernedaccount in foreign currency. Tally uses the term base currency for the currency in which youraccount books it kept (typically in home currency). Foreign Exchange is used interchangeablywith foreign currency. Tally has attempted to make the complex task of handling multiplecurrencies very easy for you. You would find some new ways of working with multiplecurrencies, automatic calculations of exchange rates, automatic conversion of any currencyused to record a transaction to the currency of the account, etc.

You must first activate multi-currency capabilities.Gateway of Tally→ [F11]: accounting features→Multiple CurrencyNow, let us work with currencies.→ Currency →The Currencies menu has the usual create, display andalter options. There is an additional optional option,rates of Exchange. We shall examine each option ingreater detail.

Create a Foreign Currency MasterYou will now need to create the foreign currencies that would be used.Gateway of Tally→ Accounts Info.→ Currencies→ Create

Symbol : Give the Currency symbol, as it should appear in all reports.Formal Name : This is meant for the name of the currency, e.g., U.S. Dollars, Pound

Sterling, Indian Rupees, etc. you are not allowed duplicates.Number ofDecimal places : Give the number of decimal places for the currency.Show amountsIn Millions : Tally has two formats for displaying an amount, viz., in millions and in

Lakhs. 1000000 (one followed by six zeroes) in millions format wouldappear 1,000,000 and in lakhs 10,00,000. Selecting ‘No’ would meanyou want amounts to appear in lakhs.

Is symbol suffixedto amount : Normally currency symbols are prefixed. However, if you want it to

appear after the amount, select yes.Put a spaceBetween amountAnd symbol : This is purely for aesthetics. Select Yes for amounts to appear like $100/,

No for $100/- If you put a’.’ after a prefixed symbol, do not opt for aspace. This could be found suitable for currencies like Rs. Whereamounts would appear Rs.100/-

Display/Alter CurrencyIf you do not have multiple currencies, the Alter screen is identical to the Display screen. Whenyou have more than one currency, select the currency whose details are to be display, Altered.


Rates of ExchangeThe screen always comes up in Alter mode:

Date for RatesOf Exchange : Rates of Exchange operate on day-to-day basis. Hence, you can specify

the rates of different currencies for a day.Note: the date column in the previous alter screen.

Standard Rate : The standard rate is used to calculate variances from the actualtransaction rates. You may choose to leave it blank.

Selling RateSpecified Rate : This is the rate obtained form the daily newspaper or your banker. If you

input this rate before any transaction entry, while entering a foreignexchange transaction, this rate will be brought up by default. (you naystill change the actual rate). Selling rate is your selling rate (as opposedto bank’s selling rate. Banks will buy currency from you in this case)used for receipt voucher entry where you receive foreign exchange.

Buying RateSpecified rate : this is the rate at which you would buy the foreign currency (as opposed

to bank’s buying rate. Banks will sell currency to you in this case).Hence, it is used in payment vouchers.

Multi Currency in VoucherExample: Mr. King Purchased goods from Samsung Pvt. Ltd. Worth $130.

InvoicingThe default invoice formats have a variety of configurations options. Using them you may printyour invoices, You may not need to create new invoice formats. It is recommended that youattempt to configure the default invoice itself. However, should you finally feel that the invoicedoes not meet the needs; you can design a new invoice using Tally’s Definition LanguageReport Designer. The TDL is quite an advanced language with which you can create newreports and screens. You may even modify existing reports and screens. However, it is aspecialist’s job and would require advanced training.

Debit Note/ Credit NoteDebit note is entered when you make purchases return or have short-billed a customer or yoursupplier have granted credit to you on account of rate difference, discount etc. Credit Note isentered when you make Sales Return or discount/Rebate or due to some reason now you like tosquare off a debit balance.

Outstanding ManagementMaintain bill wise detailYes, if you wish to give a bill-wise break-up of the ledger balance including theopening balance. The followinginformation for all pending bills of theprevious accounting period would berequired when entering the OpeningBalance:

Date : Since you are givingthe break-up of theopening balance, thedate of the billwould naturally beprior to the accounting period. To end your list of entries, leave the Dateor name blank.

Name : Give a name to which you can later refer when adjusting the bill.Typically, you would give the bill no or document number. Remember,the purpose of the break-up is to enable you to adjust it later when therelevant transaction is squared off.

Due date : Give the credit period or the date when the bill is due. You may giveeither. Tally automatically calculates the other. Another of those smallconveniences that make life easier.

Note: During transaction entry, there would be another concept-that of effective date. If you opt for “usingeffective dates” instead of “bill dates” the due would be calculated accordinglyAmount : For the amount of the bill due. You would give particulars of all the

pending bills one by one. Tally fills in the difference between yourOpening Balance, and the sum of the bills, and reflects it as ‘OnAccount’ at the bottom of the screen. If all your bills exactly cover theopening Balance, the On Account becomes NIL.

Types of Ref. : A pop-up window appears to select Method of Adjustment:1. Advance 2. Against Ref. 3. New Ref 4. On AccountSelect Relevant Type of Adjustment, Normal practice is listed below:

Advance : when you make a Receipt or Payment as Advance against a FutureSales/Purchase, entered as Advance.

Against Ref. : When payment is received or made against any exiting bill (alreadyentered as New Ref.) or a bill is raised against earlier Advance, it is


entered as Against Reference which reduces the outstanding amount tothe extent of the adjusted amount. At Name field, you should give thebill Ref (either by selecting from List of Bills or by entering ReferenceNumber-depending on your configuration) against which Bill the currententry should be adjusted.

New Ref. : When a new bill is entered (Sales or Purchase voucher) or when duplicatepayment/ receipt for already cleared Bill comes up comes up-treated asNew ref. the New Ref. is added to List of outstanding. At Name field,enter an Identity for the bill (normally bill#)

On Account : When a payment is received or made but not against specific bill (or billreference is not know). It will not appear while entering Sales orPurchase voucher. On Account transactions do not effect bill-wiseoutstanding as you do not adjust the transaction against any Bill. Ithowever reflects in the net balance of the Ledger.

Interest CalculationsTally 9.0 allows you to obtain reposts on interest calculated by Tally based on the instructionsyou furnish. Interest figures are typically desired in the following situations:

1. On outstanding Balance amounts2. On outstanding bill/invoices/transactions (Receivable and payable)

Tally gives you an exhaustive capability to obtain interest implications on both.Set-up requiredYou first need to activate the feature for the Company and then activate it for each specificledger account for which interest in to be calculated.F11: Accounting Features contains the option to activate Interest Calculations for theCompany. Look at the outstanding management in this screen. The questions asked of youare:1. Activate Interest Calculations? Set it to yes.2. Use Advanced Parameters? Set it to Yes.

Advanced ModeAdvanced Parameters – Interest Calculations on outstanding BalancesFollowing extra options now become available:1. You can now have multiple rates of interest.2. Choice of balances all Balances, Credit Balances only, Debit Balances only.3. Applicably period when is the interest applicable from and to which date.4. Choice of methods for Rounding off of interest amounts.

A brief explanation on each is called for:

BalancesInterest can be calculated on all outstanding balances whether debit or credit. You would like toselect only credit balances in case of accounts like bank accounts if you want to know theinterest that the bank might charge on overdrawn balances.

Applicable fromThe date from which the rate is applicable to a specific date. If left blank then it is up to the lastdate.

Rounding offWhether the amount is to be rounded off normally or upward or downward. You need to givethe rounded to amount. E.g. round off upwards to the nearest 10.

The advanced parameters are particularly useful where interest rates change from time to time.You may want to set your Bank Ltd interest parameters as follows:

Display Report Interest on Outstanding BalancesDisplay→ Statement of Accounts→ Interest Calculations→ Receivable/Payable

BudgetsTally allows you to create multiple budgets. There could be a budget for specific purposes, e.g.,for the bank, for the head office, optimistic budget, realistic budget, pessimistic budget, etc.Departmental budgets can also be created, e.g., Marketing Budget, Finance Budget, etc.

As usual, you first create budgets. You can of course alter them.Budget figures are used to compare against actual and to displayvariances. This is done by bringing up anew column whendisplaying a statement and selecting the appropriate budget.We shall now go through the creation and alteration of budgets.Gateway of Tally→ Account Info.→ Budgets

Operate BudgetsGateway of Tally→ Account Info.→ Budgets Create

NameGive the budget a name, in this case, Corporate Budget. As you may have other budgets aswell, the name distinguishes them.UnderIn the true Tally tradition, you can have a hierarchical budget set-up. At the top level is thePrimary budget. You can set up more than one Primary Budget.Period of BudgetSpecify the period of the budget. The period could be a month, a year or any period startingfrom any date top any date.


Set/Alter BudgetsYou may want to set the budget for groups of ledger accounts or for ledger accounts orfor ledger accounts individually or all of them. We shall take up budget for group only.Follow the same process for same process for setting budgets for individual ledgers andconst centers.

Budget for GroupsYes, if you want to set budgets for group orgroups of ledgers.If yes, fill in the fields in the Group Budgetsub-screen:

Account NameGive the names of the groups for which the budget is being set.Type of BudgetBudgets could be of two types:On Nett TransactionsWhere transaction amounts are to be monitored and not the balances. Nett is net ofdebits and credit for the specified period. Hence, Nett transactions for IndirectExpenses would mean the debit amount for the specified period after reducing thecredits for the same period. Opening and closing balances notwithstanding.

On closing BalanceWhere you wish to monitor the balance of the accounts and are not too keen onthe transactions., e.g., balances of Bank Accounts, Balances of debtors.AmountThe budget amount for the account.

Budget for Ledger AccountsGateway of Tally→ Accounts Info.→ Budgets→ Create

Name for the Budget1. Give the name of Budget E.g. Financial Budget under Primary budget.2. Specify the period of the Budget. The period could be Month, a Year or any

period starting from any date to any date.3. Under Set/Alter Budgets of, you may set the budget for groups of ledge accounts

or for ledger accounts individually or all of them.4. Here we shall take up Budget for ledgers. Hence, set Yes under Ledgers and let

others remain No.5. Select the ledgers for which you wish to set the Budget.

Type of BudgetUnder the Type of Budget a pop-up of two different kinds of Budgets appears.

On closing BalancesWhere you wish to monitor the balance of the accounts and are not too keen onthe transactions. For e.g., balances of Bank Accounts or Debtors. This means thatthe magnitude of transactions is ignored. You are concerned only with the amountremaining in the account. This is useful for Balance Sheet items.On Nett TransactionsIf you are concerned with the magnitude of transaction amounts use this option.Revenue items reflect the transacted amounts. Why nett? This is because you donot expect to have a negative figure in such accounts and if they exist, they areadjustments. E.g., an expense account like travel will always have debit entriesonly unless there is a reversal due to error or charge to a customer.CautionWhen using Net Transactions, the Budget closing Balance actually get adjustedeven if you have not selected this type. The figures in the Profit & Loss Accountwill reflect the Closing Balance figures.

Note: For comparing closing balance figures in final statements, especially the Balance sheet items, viz.,assets and liabilities, choose Closing Balances.

Alter/Delete a BudgetAlter BudgetAccounts Info.→ Budgets→ Select the Budget to AlterIf you select to alter the Corporate Budget of Groups of ledger accounts, say Yesto ‘Set / Alter Budgets of Groups’. The default is No.

The same sub-screen for Group Budget pops up for alteration of the figures. Alternecessary fields and accept.

Delete a Budget

From the Menu go to Alter select the Budget and press [ALT]+[D] to delete it.Budget VarianceThe Trial Balance and Group Summaries carry an additional ‘Budget Variance’ Button(Alt+B) which is active if Budgets are active and at least one budget exists. Pressing thisbutton will create an automatic display of Budgets, Actual with Percentage, and Varianceform budget with Percentage in three columns. This is a first-step offering of the facilityand is being fine-turned to enhance its range and diversity of options which you shouldsee shortly.

Cost/Profit ManagementMaintain cost centers

IntroductionTally’s concept of Cost Centers allows an additional dimension to a transaction. Byproviding cost centers, a transaction can be allocated to it which would then enableextraction of all transactions for a cost centre. Tally gives you the cost centre break-up ofeach transaction as well as details of transactions for each cost centre. When you alsoallocate income to the units, they become Profit Centers. You can now obtain a Profitand Loss account of each such Profit Centre. For your purposes, the terms of cost Centreand Profit Centre are interchangeable.


.Examples of cost centers:

1. Departments of an organization, e.g., Finance, Manufacturing, Marketing,etc.

2. Even individuals like, Salesman A, Salesman B, etc.You may allocate expenditure incurred on sales by the salesmen, as well as the salesgenerated by them, directly Of their cost centers. The allocation is done online at the timeof transaction entry itself. By allocating your expense and sales transactions to thesalesmen you have set up a valuable information system to know the efficiency andeffectiveness of the salesmen.

Cost Categories (For advanced usage only)Cost Categories have been introduced for organizations requiring allocation of resourcesparallel sets of cost centers. Such organizations would usually be project oriented.

1. Most organizations would not need cost categories at all. Proper use of CostCenters itself would give you the same benefits. Cost categories wouldincrease your data entry work as well as complexity. Hence, before optingfor it, please evaluate carefully whether you actually need cost categories.Always attempt to first use cost centers alone.

Use of Cost CategoriesIf it were not for Cost Categories, there would be only one set of cost centers, e.g., onlyone set of Primary Cost Centers with each Primary cost centre having its ownsubsidiaries. By using Cost Categories you may allocate, in parallel, a transaction to morethan one set of cost centers. Its use becomes apparent with the following example.Let us extend the above example itself. The Primary Cost Centers Marketing, Finance andCategory – Executives. Similarly, you can create a new Cost Category ‘Projects’ underwhich cost centers airport construction, road construction and Building may be created.The classification would look somewhat like the matrix below:Cost Categories: Department Executives ProjectsCost Centers: Manufacturing Salesman A Airport Cont.

. Marketing Salesman B Road const.Finance Salesman C Building

Your actual screens would appear thus:Creation of Cost CategoriesCreation of Cost Centers

Other Features

Examples: Salary paid Rs. 12000/- (Salesman A- Rs. 4,000/-, Salesman B Rs.6000/-,Salesman C Rs. 2000/-

Enable Cheque PrintingYou can choose to write cheques directly from Tally. Cheques will be printed whenprinting a payment voucher. However, first activate the capability in F11: AccountingFeatures and set the dimensions. Tally accepts user defined cheque dimensions!Gateway of Tally→ F11: Company Features→ Accounting FeaturesEnable cheque printing yes

Company Name on Cheque:If you want Tally to print the company name on the cheque for signature purposes,give the name e.g. Demo Company Limited. If you do not want Tally to print thename, leave it blank. Many banks give cheques with your company name alreadyprinted on it, in which case, you do not want Tally to print it.Name of Banks:Type the name of the bank. The name should also exist as a ledger account in Tally.You now fill in the dimensions of the cheque.Take the bank’s chequebook and measure the dimensions of a cheque carefully inmillimeters and fill the form. You may need to correct it after trying out a couple of


cheques so that the positioning is accurate. The placing of the cheque n the printeralso determines the printing. Trial could be made on photocopies of a cheque beforeusing an actual cheque leaf.

Allow Zero Valued EntriesTo make a voucher with Zero amount, set ‘yes’, otherwise set ‘no’ to restrict entry of zerovalued voucher.

Exiercise1. Create the Budget fo indirect Expenses (group wise) worth Rs. 35,000 on closing

balance the name of expenses Budget.2. Create the Cost Centres and Category (Allocate Revenue Items –yes):

a) Cost Category : Departementsb) Cost Centers : (i) Marketing

(ii) Administration3. June 5: Paid Advertisement Expenses Rs. 15,000 by cheque.

a) Rs. 6,000 for Administration Departmentb) Rs. 9,000 for Marketing Department

4. Check your budget variations.5. June 11: Sold goods to Vaibhav of Rs. 20,000 and Rs. 5,000 received at th time of

sale. Raj computers charge interest will be charges @ 12% p.a. If paymentreceived after 30 days from the date of sale.

6. July 12: Received Rs. 5,000 from vaibhav.7. July 20: vaibhav paid all the reaining balance amount.

Hint: 1. Budget variance Rs. 22,190 (63.40%)2. Match Trial Balance 7,12,877

Voucher Types & ClassSession -4

Voucher TypesIntroductionA voucher is thr primary online document for recording transactions.Transaction recording and analysis are greatly facilitated by havingspecific formats for different for different types of transactions. Tallyprovides 18 different predefined voucher formats or what it callspredefined types of vouchers. These are used for recording varioustransactions.The predefined voucher types can be displayed as follows:Gateway of Tally→ Display→ List of Accounts→<Ctrl>+<V>[voucher Types]How To Manage And Operate Voucher TypesTally acknowledges the special requirements of some users for morevoucher types. These arise in cases like when you need the samevoucher but in different names or separate series of numbers.Examples include Cash Payment Vouchers and Bank Paymentvouchers where the relevant predefined voucher is payment voucher. You may have twoor more sets of Sales vouchers for different kinds of sales transactions e.g. credit Sales,Cash Sales, etc.You would need to alter a voucher type to change default settings for differentinformation appearing in vouchers. Using [F12] can further configure a voucher.

Create a Voucher TypeCreate a new voucher typeGateway of Tally→ Accounts Info. →Voucher Type→ Create

Note: A new voucher type must assume the function of a predefined voucher type

NameGive the name of the new voucher type, e.g., Bank Payment Voucher.Type of VoucherThe type of voucher should be any one of the predefined voucher types (already listed inintroduction). The new voucher type would inherit the properties of this predefinedvoucher type. It would function exactly like the predefined voucher.

Voucher Type & Class

AbbreviationAn abbreviation is required particularly for unformatted reports, which do not usecompressing techniques. (Tally allows printing of both formatted and unformattedreports). In the Example, give ‘BPymt’ as the abbreviation. Though there is no restrictionon the length of the abbreviation, it should preferably be five characters or less.Method of Voucher Numbering

NoneThis will disable numbering of such vouchers. If you select this method, nofurther information is required.ManualThis method will allow you to number voucher of this type yourself. It does notcheck for sequence of the numbers and permits you to specify anything you wishin the voucher number field. However, you may choose to prevent entry ofduplicate numbers. If you do, enable the next field ‘Prevent Duplicates’.

Note: Prevention of Duplicates is possible if you enable the option at the time of creation. You may enableit later (by alteration) only if there are not transactions of this voucher type.

AutomaticThis method is both flexible and exhaustive. Use it carefully to give you yourdesired numbering system. Select this option to let Tally number the vouchersautomatically for you. You must give the following additional information:

Use Advance configurationPress Y to define additional information about voucher type. It will show you a newwindow where you can provide following information.Starting number : Give the number for the first voucher. Usually it is

1. You can set it to any number you want.Width of Numerical Part : You may leave it blank to let Tally automatically

adjust the width according to the number. You maykeep a fixed width, e.g.,3.

Pre fill with ZERO : when the width is specified, the digits before thenumber is blank if ‘NO’ and zeroes if ‘yes’. E.g.0010

Restart Numbering Voucher : Numbering may be restarted with the startingnumber (as specified) at intervals selected by you-Monthly, Yearly or Never.

Prefix Details : If you want the voucher numbers to be prefixed withsome fixed information, give the information here.You may give your company Name/month name.

The numeric portion begins immediately after the prefix information. Therefore, be sureto give a space or a slash ‘/’ or some such character should you want a separation,

Suffix Details : you can also give fixed suffix information for thevoucher number. The same rules and effects as forPrefix details apply.

Use EFFECTIVE dates for vouchersSelect Yes if you want to enter effective dates for vouchers. You would opt for this if youhave instances where a transaction under consideration for overdue/ageing analysis isrecorded currently but will take effect from another date. If effective date is entered, theoverdue/ageing will be considered from the effective date and not from voucher date.

Use common narrationSelect Yes to give a common narration for the entire voucher, Tally vouchers can havemultiple entries. Hence, you may wish to give a common narration for all the entries ofthe voucher or a separate narration for each entry or both. Select Yes even when you wantboth. Select NO if you do not want a common narration.Narration for each entrySelect Yes if you want to give a separate narration for each entry of a voucher. Thiswould be applicable for a multiple entry voucher where you want separate details for eachentry. Select No if you don’t want separate narration for each entry.Print after saving voucherIf you want print every voucher entering it, select Yes, else select No, This is suitable foran online environment where you use the Tally printed Voucher as the format voucher.

Voucher ClassesVoucher class is predefined voucher type profile that helps to automate & expenditurevoucher entry and minimize errors. Voucher Class enables the administrator to set thecontrol on the operators.Voucher class is pre-configured template with defined accounting entries (likeAccounting Group, Ledgers, Cost Centers etc.) and allocation/ computation rules, Someof the uses of Voucher Classes are: Automatically select a ledger account (or proposes a specified ledger for quick

selection) in voucher entry. Automatically round off the figures as per rounding off rules. Automatically compute Tax, Duty and other allocations. Voucher classes are available for all major voucher types. Voucher classes ensures fast and correct data entry and provides more security (In

many cases the data modification is prevented)

Voucher Classes for Payment, Receipt and Contra VouchersThe primary intention of using classes for payment, receipt and contra vouchers is toenable data input in ‘single entry’ or list mode rather than in Tally’s traditional doubleentry mode. You can also use it have a separate form for each cash and bank account.


Exclude these GroupsGroups other than Bank or Cash Groups should not be selected. This is used to excludeCash or Bank Groups that are not to be used in this class to pay out the money. It ourexample, we want to exclude Cash and Credit cards.Ledger NameSelecting the ledger account that will be used to pay out the money will eliminate theneed to select it during entry. In this case, it is Barclays Bank. In a receipt voucher, youwill select the ledger account into which monies will be received. You may even select‘Not Applicable’. The purpose of selecting ‘Not applicable’. Will be to permit singleEntry mode and at the same time retaining the option of selecting the account duringentry.Note: Exclude or Include groups are irrelevant when you specify a ledger name for which the class iscreated. They are useful when you select ‘Not applicable’In case you do not required split payments, you could create only one class with nothingin include/exclude Groups and without any ledger name. A Single class does not requireclass selection and is a rapid way of using Single Entry mode with full functionality of allledgers available.Accept the class table and the voucher type alteration. You may use [CTRL]+[A]Combination.

Payment voucher Entry with classSelect voucher entry at the Gateway of Tally. Press F5: Payment. You have to select aclass or Not Applicable if no class is desired for this entry. If Cost Center Class has beenset, it can be selected too.The entries will be made as follows:The voucher class is Petty Cash. Note that you do not have to select the Cash/ Bankaccount and the entries are not in the regular Dr/Cr format. Data entry in Tally wasalready very rapid. It now faster than before!

Purchase/Sales Voucher classesPurchase voucher Classes are templates where you can restrict accounts to be used inentries as well as automate accounting entries for items and expenses.

Default Accounting AllocationEach Stock Item in the invoice can be allocated to the financial (nominal) accountmentioned here. Hence, all the stock items that will be entered in this class will be enteredin this class will automatically affect this Nominal ledger account. Of course, the stockitem record remains as it is and can be viewed separately.

Ledger NameSelect the ledger to be credited for each item sold in the invoice. More than oneledger can be affected for each item, e.g., for Tax-inclusive items, the ledgers tobe credited will be sales and Tax in a definite proportion. This is where percentagecomes in.Percentage%Useful in tax-inclusive items, you can specify the Sales ledger account as, say,82.5% and in the next line the Tax account with the balance 17.5% normally, fortax-exclusive prices, you will give 100% for the Sales account. The % symbol isrequired to be mentioned.

Rounding MethodThis may be used only where the sales account is NOT 100%. Calculated amountsmay be required to be rounded off upwards or downward or normal. Normal isrounding to the number or decimal places specified for the currency based on theless than 5 & greater than 5 rule. You can set your own rounding off rule e.g.round off to the next whole number. In such a case, you will give Upwards.Rounding LimitFor the previous example, you will set it to 1 to achieve the amount to the nextwhole number. To round off upwards to the nearest 50P, you will set it to 0.50.Override using Item defaultThis is a question to be answer Yes or No. Item default here refers to the SalesLedger account that you may have set for a stock item, e.g. For Computers Sale ofFinished Goods. If in the Class Table here, you mention Sales Local, and set No tothis question, then sales local will be amount affected and not sale of FinishedGoods. Setting it to Yes will affect Sale of Finished Goods. The advantage of thisis that you can use different classes to affect different sales accounts.

Additional Accounting EntriesExpenses and other charges like Import Duty, Freight, VAT, Sales Tax can be specifiedhere which will be calculated automatically on the Type of Calculation and Value basis.

Ledger nameThis is self explanatory. You can give more than one ledger.Type of CalculationSelect the type you want for calculations.As Additional ExciseIn the Indian sub-continent, a manufacturing Tax, or Excise is levied. For someproducts, a supplementary levy on the ‘Basis Excise Duty’ is charged, or‘Additional Excise Duty’. This is a surcharge calculation. For example, anAdditional Excise Duty of 10% on the Basic Duty. While the calculation methodis identical to ‘As Surcharge’(see below), the result is to provide a ‘Total ExcisePayable’ calculation accurately during Invoice Printing.As a Flat RateWhen you wish a specify standard mark-up/down on an invoice independent ofthe qty/value of the invoice.As SurchargeWhen you wish to calculate the value based on the immediately preceding figure.For example, a Sales Tax of 10% is applicable on an invoice, which would becalculated on the value of goods sold. On this, a ‘Surcharge’ of 5% -i.e. 5% of thesales Tax value is applicable.As Total Amount RoundingTypically, the last line in an invoice. You would need to create an account, whichwould carry the ‘rounding difference’. Now, as the other value of invoice arecalculated, this account would automatically get adjusted to keep the Total invoicevalue to the desired rounding limited. Normally, you would also mark this invoiceas ‘Remove if Zero? Yes’. So that the account head is not retained in the invoiceprintouts if no rounding was applicable.As User Defined ValueThis allows you to specify a value while creating the invoice itself. Normally, youwould use this when the basis of calculation is neither value nor qty dependent,and therefore, needs to be entered every time you create an invoice.


Based on QuantityIn case of calculation based on the ‘total qty’ supplied. For Example, you mayhave Freight or Forwarding charges as 2.00/Kg, and if the total qty supplied in theinvoice is 200.000 kg, then the amount should become400.00.The ‘value Basis’will also need to be provided as ‘2.00/Kg’ or ‘0.50/Pc’ as the case may be.On Current Sub TotalIn certain environment, taxes are applicable on the Total Goods Value as well assupplementary charges such as ‘Excise Duty’, ‘Packing Charges’ etc. Normally,when the tax calculation method is specified as ‘On Total Sales’ (see below), thecalculation are based on the Total Goods Value only. When you wish thesupplementary charges to be include, then you would set ‘on Current Sub Total’as the type of calculation.On Item RateTypically used for both VAT as well as Excise Duty style calculations. Here, youwould have specified the Rate of Tax applicable for each Stock Item, and youwould want only those items to be used for calculation purposes which equals thisRate of Tax. The advantage is to be able to mix multiple Tax Rate products in thesame Invoice, and yet get the correct ones picked up for each Tax bracket.On Total SalesThe most common basis of Tax calculation is on the total value of goods/services.This method would calculate using the sum of Stock Items used in the invoice.Value BasisGive the amount which is to be used for the Type of Calculation. For percentage,you must use the symbol%. Hence, Tax on Sales is 17.5% on Item Rate to use therate given in the stock item. The method of Total amount rounding will round thetotal invoice and put the difference in the Ledger name mentioned here.Hence, the account Rounding Off will contain the sum that essentially rounds offthe invoice to the desired level.Rounding Method and Rounding Limit have been explained already.Remove if Zero?This is q question to be answered Yes or No, essentially to permit Tally to ignorethe account and not to make any entry in it if its value is zero. If Yes, ensure thatyou are permitted to make zero value entries in F11: Features. No will record theinvoice in the ledger account with nil amount. Under normal circumstances, youwill probably wish to set this value to Yes. However, in cases such as ‘Zero RatedVAT’, You may wish to retain the Ledger Account line, even though thecalculation Yields a nil amount.

Now you can enter purchases using this class,It will show you as follows

Voucher Classes for JournalsClasses allow Journals to handle Forex Gain Loss Adjustments for companies havingmulti-currency Accounts. You would create a ‘Class’ in the normal way (AccountsInfo→ Voucher Types→ Alter→ Journal). And having selected the class duringVoucher Entry, will find only those Ledger Accounts appearing which have a Gain/Lossto be adjusted as of the date of voucher and auto-calculation of these amounts.

Voucher Classes for Debit Notes and Credit NotesVoucher classes for Credit Notes are similar to sales invoices except for one importantinclusion. You can set the class for interest entries to enable adjustment of interestpayable. If the Interest option is selected, the other sales invoice- like options will not beavailable. A separate class may to be created for entries like Sales Returns. Since Salesand Purchase invoice classes have already been dealt with, we shall not elaborate on thisbehavior anymore.Debit Note classes can be set for interest entries only. Classes for other entries are notavailable as the invoice mode of entry is not possible for Debit Notes. Classes for interestentries are covered under Interest Calculations.

Cost Centre ClassesThe purpose of const centre classes is to facilitate predetermined allocation of ledgeraccounts (like expenses and incomes) to cost centre during voucher entry. Allocation tocost centre can be ‘classes’ too.How it workAutomation of cost centre allocation involves ‘percentage allocation’ based on predefinedfigures. Cost Centre Classes are defined where percentage which allocation is to be madeare given.Cost centre classes affect all voucher types. In voucher entry, depending upon the costcentre categories and cost centre before creating classes. Draw out on paper the classesrequired and indicate which cost centre will be affected for each class.

Set up cost centre classesAt the Gateway of Tally, select F11: Company FeaturesTab down to or simply click on No of the last option ‘Set/Alter other Company Features?’Set it to Yes.You bring up the Advanced Features one of which is Use Pre-defined Cost CentreAllocations During Entry Cost Centre Classes.Set this option to Yes.You now bring up the Cost Centre Class creation screen. Type in the Class names andselect the Categories and the respective cost centre. Specify the percentage of allocation.Although the names of the class and the cost centre are the same in the example, you neednot have them with same names.Voucher Entry with Cost ClassesEach voucher now contains the cost class option at its head. Select Not Applicable in caseyou want to allocate manually. Select a cost class to auto-allocate according to thepredefined percentages set in that class. Now enter the voucher as usual. The cost centreallocation sub-Screen will not come up and the allocation will be done automatically inthe background.After accepting the entry, check the cost center displays to verify whether the allocationwas done correctly.


Exiercise

1. a) C reate Voucher Class “RST 8%” fpr Sales Voucher Type.Include’ sundry debtors’ and ‘cash in hand’.Default Accounting Allocation: ‘Sales 100%’Additional accounting Entries: Sales Tax 8% on Total Sales

b) Create Voucher Class “RST 10%” for Sales Voucher TypeInclude ‘sundry debtors’ and ‘Cas in hand’.Default accounting allocation: ‘Sales 100%’Additional accounting Entries: ‘Sales Tax 10% ‘ ‘on Total Sales’ &‘Surcharge 4% on Tax’.

2. 25 july sold one computer using voucher class RST 8% Sales in cash @29400/-.3. 31 july sold two computer using voucher class RST 10% Sales to Vasu Associates

@29200/-.4. Create cost center class as follows

Jaipur- 50%Kota- 25%Ganganagar- 25%

5. 5 August paid Salary 25,000/- using cost center class through HDFC Bank6. 10 August paid Rent 30,000/- using cost center class through HDFC Bank.

Hint: 1. Match Trial Balance = 8,02,245.602. Match Stock Summary = 3,60,350.00

Inventory MasterSession- 5

Introduction to InventoryIf you want how many quantities you had Purchased/sold and howmuch you have in your stock. You can do this in Tally. In companycreation/ Alteration menu you have select at maintain field accountsand Inventory option. All stock related options would behighlighted through this. The different inventory information thatyou would provide to tally by way of masters are:Gateway of Tally→ Inventory Info.

Basic of InventoryStock GroupsStock items can be grouped together under stock Groups to reflecttheir classification based on some commonality. Grouping wouldenable easy location and reporting of stock items in statements.Hence, items of a particular brand can be grouped together so thatyou can extract stock of all items of that brand. For example, createStock Groups like books. Your stock items could then be Textbook, Drawing Book, Exercise book etc.Gateway of Tally→ Inventory Info.→ Stock Groups

Creation a stock GroupGateway of Tally→ Inventory Info→ StockGroups→ Single Create

NameGive the name of the stock group. Here we

wish to create a group books.UnderSpecify whether it is a primary group or a sub-group of another group. Select fromthe pop-up list. Here we select Primary from the list.Use ALT+C to create parent if you do not have the group you want in the list.Can quantities of items be ADDED?This really pertains to information on the stock items that you would create underthis stock group books in this case. The stock items created under the group

Inventory Master

should have similar units to be ‘addable’. You obviously would not want to addKgs with Pcs (where you have a group like ‘Consumables’ and items like ‘grease’and ‘rag cloth’ which are measured in kg and meters respectively). We select Yeshere because we want to create items like Drawing Books & Exercise Book etcwhich at this point we feel would be addable and the total meaningful. You maylater set it to No, if you find that the totals do not make sense. It is, possibly, easierto set it to No initially and later set it to Yes on assessing the item units in thegroup.

Display or Alter a Stock GroupGateway of Tally→ Inventory Info→ Stock Groups→ Single/Multiple DisplayOrGateway of Tally→ Inventory Info→ Stock Groups→ Single/Multiple AlterSelect the Stock Group whose particulars you wish to display. When you display or altera stock group the information entered while creating it is displayed.Delete a Stock GroupYou can delete a stock group only if it does not have any children under it. The childrencould be stock group or stock item or both.Gateway of Tally→ Inventory Info→ Stock Groups→ single AlterPress [ALT]+[D] to delete the stock GroupNote: You cannot delete a stock group from multiple mode.

Units of MeasureYou will need to create units of measure for stock items. These can be simple units suchas numbers, meters, Kilograms, Pieces, or compound units, e.g. box, where, say, one boxequals ten pieces.Creation of unit of measureGateway of Tally→ Inventory Info→ Unit of Measure→CreateTypeSymbols are of two types: Simple and Compound.

SimpleSimple units are considered as stated by you andTally just checks for duplication and nothing else. If you wish to give unit symbolthat are single and not a combination of other units, select Simple. Tally defaultsto Simple and if you want to change to compound, use backspace from theSymbol field and select compound from the popup list.

SymbolGive the symbol o the unit, e.g., No., Mtrs. This symbol given by you is used in alldisplays and printouts. We give the symbol ‘no’ (for numbers).Formal NameGive the formal name of the symbol. This explains the symbol, which is also used duringconsolidation of data of different companies where the symbols might be the same but areassigned to different Units. The formal name will be used to match them. Here we typeNumber as the formal name for the symbol ‘no’.No. of decimal placesIf the unit will be used in fractions, say for a kilogram you may have to use grams as well,give the number of decimal places. For kilograms, you would give 3 decimal places toaccommodate up to 999 grams. Hence, a measure 1 kilogram 865 grams will be 1.865

kilograms. For units like numbers, you do not normally want a decimal place and you canspecify 0 in such cases. You can specify 0 to 4 decimal places.

Compound UnitsA compound unit is a relation between two simpleunits. Hence, before you create a compound unit,ensure that the two simple units have beenpreviously created. In the example here, we usedozens as another simple unit (created as we didnos). Now we must give the relation between dozensand numbers as one dozen equals twelve numbers.

Note: use the up arrow or backspace key to position the highlight in the Type field. Select Compound fromthe types of unit’s pop-up menu.

Displaying and Altering Units of MeasureGateway of Tally→ Inventory Info→ Units of Measure→ Display/ AlterOnce created, units of measure can be displayed and altered. You can delete a unit ofmeasure in the alteration screen by pressing [Alt]+[D]. However, you cannot delete a unitof measure that is part of a compound measure. The compound measure must be deletedfirst.Stock itemsLike Ledgers, stock items are the primary inventory entity. You willuse stock items while recording their receipts and issues. This islowest level of information about your inventory. Each item that isrequired to be accounted for, needs to be created. In fact, you willcreate a stock ledger account for each item and Tally calls thisaccount ‘Stock item’.

Creating a Stock ItemGateway of Tally→ Inventory Info→ Stock Item→ Single

CreateNameGive the Name of Stock item. Here we wish to create an

item Exercise Book.AliasThis is for alternative names of stock items.UnderSpecify the Group to which it belongs. Use [Alt]+[C] tocreate a parent if you do not have the item you want inthe list.UnitsGive the unit of measurement of the item here. As usual, use [Alt]+[C] to create anew unit.

Display or Alter a Stock ItemGateway of Tally→ Inventory Info→ Stock Items→ Single/Multiple Display or AlterSelect the stock item whose particular you wish to display. When you display or alter astock item, the information entered while creating it is displayed.Delete a stock ItemYou can delete a stock item only if it has not been used form transaction entry.Gateway of Tally→ Inventory Info→ Stock Items→ Single AlterPress [Alt]+[D] to delete the Stock ItemNote: You cannot delete a stock item from multiple mode.

Inventory Master

Voucher TypesThis is exactly similar to voucher types under accounting section. Please refer to thatsection. You may wish to alter existing inventory voucher types or create new ones basedon those existing.Tally is pre-programmed with a variety of inventory voucher, each designedto perform a different job. The standard vouchers are:

1. Receipt note voucher (Alt+F9)2. Rejections-in voucher (Ctrl+F6)3. Delivery note voucher (Alt+F8)4. Rejections-out voucher (Alt+F6)5. Stock journal voucher (Alt+F7)6. Physical stock Voucher (Alt+F10)

Inventory MaintenanceInventory maintenance covers whole many of accounting materials (physicaland monitory count.) This generally comprises of:

1. Enquiry and quotation for offer for sales and purchases.2. Sales & Purchases order3. Delivery and receipt of materials4. Return of materials5. Sales and Purchases invoice6. Debit and credit notes7. Tracking of Sales and Purchases order8. Inventory Control9. MIS reports

Exiercise1. Alter your company informaton with “Accounts with Inventory”.2. Enter the following inventory details:

S.No

Nameof item Group Units Category

Godowns Op.Qty.

Rate Value

1. 17” Monitor Flat PC LG Lalkothi 12PC 6,200 74,4002. Cabinet H/W PC ACER “ 16PC 1,200 19,2003. Computer Branded PC IBM Rajapark 5PC 26,550 1,21,7504. HDD H/W PC A-Tech Vaishali Nag. 12PC 2,500 30,0005. Key Board Multimedia PC Intex Lalkothi 30PC 430 12,9006. Mother board H/W PC A-Tech Rajapark 15PC 2,900 43,5007. Mouse Optical PC Intex Vaishali Nag 12PC 225 2,7008. Net. Cable H/W Mtr. Tikaro Lalkothi 70Mtr 12 8409. Processor H/W PC Intel Vaishali Nag 22PC 4,500 99,00010. RAM H/W PC A-Tech Rajapark 18PC 1,050 18,90011. Speaker Woofer Set Sony Vaishali Nag 7 PC 830 5,810

4,40,000

Advance Inventory Features [F11]Session -6

Inventory Features (F2)Gateway of Tally→ F11 Company Features→ Inventory Features (12)

GeneralIntegrate Accounts with InventoryEffect on Balance Sheet and Profit & LossaccountThe option in Inventory Features has asignificant effect on the Balance sheet andProfit & Loss Account. If set To Yes, itBrings the stock/inventory balance figuresfrom the inventory records and provides adrill down to the Stock registers from theBalance Sheet. If it is set to No, it ignoresthe inventory books figures and picks upmanually entered closing stock balance. Stock records often contain compensationerrors caused by wrong allocation to items and the like. The feature enablesfinalization of financial books without for reconciliation of stocks that may taketime.Allow Zero Valued EntriesAs we discussed in chapter -3 advance accounting features [F11].

InvoicingAllow InvoicingEnter purchases in invoice formatInvoicing or Sales invoicing is not very different from sales voucher entry. In fact,you use the same voucher but select ‘As Invoice’ option to turn it into a salesinvoice. Purchase invoices are recorded through normal Purchase Voucher entryand it does not have the provision of being converted into an invoice format forentry purposes. However, you can print the purchase voucher as a PurchaseInvoice or even a Purchase Order.Note: Ensure that you have activated Invoice Entry capability in F11: Company features.

Advance Inventory Features [F11]

Use debit/credit noteAs we discussed in chapter -3 advance accounting features [F11].Allow discount column in invoicesThis option is active only if allow invoicing is set to Yes. Set this option toyes, if you want a separate column for discount in invoices. This discountcolumn will be displayed in sales / purchases invoice only.

Storage & ClassificationMain multiple GodownIf you have more than one stock point/storage locations/ warehouses/godowns,and you want to track stock movement in these locations, set it to Yes. Tallypermits any number of stock points. You will be able to know your stocks at eachlocation as well as assign stock movement to one or more locations duringvoucher entry.

Create a LocationGateway of Tally→ Inventory Info→ Locations→ Create

NameIn the Name field, give the name of the location.AliasGive an alias for the name, if required.

UnderGive the location under which this location is to be sub-grouped. Use[alt]+[C] to create the parent location. Select primary if it is not a child ofany location.

Allow Storage of MaterialsTally permits you to create a location/godown where you may not store materials at allbut treat it as a virtual location. Virtual location is useful in case like Head Office whichmay have many different stock point under it that store materials. Hence, Head office actslike a primary group location.Displaying and Altering Stock LocationsOnce created, stock locations can be displayed and altered in single and multiple mode.You can delete a stock location via Single location Alter by pressing [Alt]+[D]. However,you cannot delete a stock location with sub-location. The lower levels must be deletedfirst.

Maintain stock categoriesStock CategoriesThe concepts is similar to Cost Categories. You may wish to refer to the Chapter on CostCategories to grasp the similarity/differences. This option will come up in the menu onlyif you have opted for stock categories in [F11] comp. Features. Stock Categories offersparallel classification of items.Note: the stock query option under statements of Inventory Display will reveal the strength of this feature.

Creation of stock categoriesGateway of tally→ Inventory Info→ Stock Categories→ Create

NameGive the name of the stock category. Here we wish to create a category LG,Samsung, Philips etc.UnderSpecify whether it is a primary category or a sub-category of another category.Select from the pop-up list. Here we select primary from the list (there is no other,at this moment).Use Alt+C to create a parent if you do not have the category you want in the list.

ButtonsF4: ParentTo change the parent ‘Under Category’ when you may have created sub-categories underit. The change affects all the sub-categories created under the parent and they wouldbelong to the new parent.F8: Skip DetailsIf the answer to the question ‘Under’ is to remain the default, which is the same as ‘UnderCategory’ for all new names, than use this button. Your cursor wil not go to that columnwhich speeds up data entry. Use the following buttons to switchto the respedctive masters for creationDisplay or Alter a Stock CategoryGateway of Tally→ Inventory Info→ Stock Categories→Single/Multiple DisplayOrGateway of Tally→ Inventory Info→ Stock Categories→Single/ Multiple Alter


Select the stock category whose particulars you wish to display. When you display oralter a stock category, the information entered while creating it is displayed.

1. Display from this mode is for master information only. You will not obtainany balances for a stock category here. Use the Display option from theGateway of Tally for display of balances and transactions.

2. In earlier days of computing, one would look at the master information forbalances. Tally believes that balances are a logical consequence of thetransactions; hence, they should be available with the transaction summaries.You would find all summaries and details through the Display option in themain Gateway of Tally.

Delete a Stock CategoryYou can delete a stock category only if it does not have any children under it. Thechildren could be stock category or stock item or both.Gateway of Tally→ Inventory Info→ Stock Categories→ Single AlterPressing [ALT]+[D] to delete the stock categoryNote: you cannot delete a stock category from multiple mode.

Maintain Batch Wise DetailThis option is for maintaining batch information pertaining to stock items. The batch doesnot extinguish itself after it is disposed of; it remains on record and is quite like the ledgerin behavior. Hence, it is possible to view data like below:Set Expiry Date for BatchesThis is useful for businesses that deal in goods that have expiry dates like medicines,foods and other perishables, while voucher entry, date of manufacture of the productdefaults to the date of the voucher is which can be changed but not to a date later than thevoucher date. Expiry date cannot be a date prior to the voucher date.Note: Batches should be used where they are small in number and remain constant, Do not use the batchoption for tracking of lots through manufacturing processes. If that is done, you will soon have a largenumber of batches which are not deleted. You will not be able to assign costs to particular lots as may bethe intention.

Use different actual & billed quantityThis option enables you to specify quantities, which are different from thatdelivered, when invoicing, andrecord the fact. It is possible thatyou have delivered goods butsome of them are in dispute andyour customer wishes to beinvoiced for only the quantity thathe agrees to. He may consider therest later and would then like tobe invoice. On the other hand, therest is so bad that it is uselesseven for you to take back. Hence,you can record the fact whenraising the invoice withoutaltering the delivery note orpassing a rejection entry. Select this option if you have many such occasions. Thisfeature is use for schemes which offered by the company or business like‘Buy one Get one free’.

Additional FeaturesAdditional Information’s If you do not find a field that you are looking for, or if you wantto remove some or all the extra fields, check configuration and/or company features.Usually, you will be able to configure the information to your requirements.Gateway of Tally→ Inventory Info→ Stock Items → single createThe additional information are:Part No : you can give part number for the item to identify them here. In

certain industries, e.g., the automobile industry, various parts arebetter known by their part number.

Alias : it is a another name of Part No.Description : Enter description of the stock item that would appear in your

invoices as well, if you want them to.Category : Select the category from which it belongs.Remarks : it is like additional information about the stock item to better

understand that particularAlternate Units : This is another unit, apart from the main unit, that you can use for

the stock tem. This is particularly useful when you need to deal indifferent units at different times. For example, you buy sugar byweight in Kgs but sell in packets. For alternate units, you are asked togive a conversion factor so that a link is maintained between the two

Enter StandardRates? : if you wish to specify standard purchase and sales rates for the

item, select Yes. Standard rates enable valuation of inventory atstandard purchase or standard sales price. Moreover, these pricescome up by default during transaction entry, (but they can beoverridden with adequate authority).

Use BOM : Bills of Materials (BOM) should be used only for the items thathave sub-assemblies or are manufactured.

Costing Method : Here we can select the method for valuation of the inventory. Tallypermits different valuation methods for different items

To value the stock, you can select from the following methods:Average Cost/Price : Tally recalculates the value after each purchase or sale.FIFO (first InFirst Out) : Tally assumes the sale of the oldest goods first.Last Purchase Cost/Sale Price : The stick is valued at the latest price.LIFOAnnual (LastIn First Out Annual) : Tally assumes the sale of the newest goods first taking into

account the current financial year.LIFO Perpetual

(Last In First OutPerpetual) : As above but the last purchase price continues from the

previous financial year.Standard Cost/Price : A pre-determined value you have entered.Ignore Difference dueto PhysicalCounting?(Y/N) : You are allowed to record the physical stock as counted, by

way of a physical stock voucher. There is, usually, adifference between physically counted stock and thatappearing in the records. If you wish to ignore the


difference and continue using the stock as per books, selectYes. It is, however, advisable not to ignore the differenceand let Tally consider stocks as per physical count forsubsequent transactions.

Ignore NegativeBalance (Y/N) : this question really takes permission to ignore the item in

stock reports, should it have a negative balance. Select asrequired.

Treat all sales asNew manufacture? : if you wish to avoid the need to pass entries for

manufacture or goods in and have them automatically donewhen goods are sold, select Yes, this way you also avoidnegative balances in the stock records. It is particularlyuseful for smaller manufacturing companies that makethings but do not want the problem of receipting stocks.Treat all Purchase as consumed? This is quite the converseof the previous question. Issues are automatically raised forall goods purchased, if you select this You do not wish tokeep track of issues for this item. This is particularly usefulfor consumables. The book stock of this item will always benil.

Treat all rejectionsInward as scrap? : If you do not want-rejected goods coming in to be taken

back into stock, select Yes. Otherwise, rejected goodsreceived, though recorded separately through a RejectionNote, will be taken back into stock.

Order ProcessingAllow Purchase order ProcessingThis option is set ‘yes’ to make purchase order and reorder level.Allow sales order processingThis option is set ‘yes’ to make sales order.

Reorder LevelReorder level is that quantity in hand for a stock item, reaching which, you shouldordered your supplies. The importance of reorder level arises from the desire to havesufficient stocks to service customer orders and at the same time not to haveunnecessarily high stocks. Therefore, the points to be considered in deciding reorderlevels are the lead time for suppliers to deliver stock, the delivery time specified by thecustomer, and the stock in hand to satisfy orders in the meantime. In simple mode, Tallyaccepts your specified quantities only. In advanced, Tally considers past consumptionpatterns to suggest reorder levels. You can however, give your own levels. You may alsospecify the minimum quantity that is to be place dfor each order in either simple oradvanced mode.The purpose of specifying reorder levels is to obtain a report that indicates the stocks thatneed to be ordered. Hence, we will specify and then obtain the report.

Specifying Reorder LevelsGateway of Tally→ Inventory Info→ Reorder Levels

Select the Group of stock items for which to specify reorder levelsNote that for each time a reorder level and minimum order quantity can be Specified. Ifyou click on the simple reorder button, the consumption alternatives will not be availableand you will input the quantities.For each item’s Reorder level and Minimum order Quantity the entry options are identicaland they are:

Level/QuantityIt requires input of quantity.Or Consummation of LastHere you are given the option to let Tally calculate the reorder level/order quantity basedon past total consumption for a chosen period. Past period suffered area: Days, Weeks,Months and Years. Please note that it is not average consumption for the period but totalconsumption. Give 0 if you do not want the previous consumption for an item.Whichever is Higher/LowerSelect whether you want the higher of the two i.e., input level/quantity or calculatedRounding MethodAnd specify whether the calculated quantity should be rounded and the method.Obtain Reorder Status and Quantities to OrderGateway of Tally→ Display→ Statements of Inventory→ Reorder StatusSelect from List of Groups of Stock ItemsIn this case electronics in selected.On selection:


This report gives you the reorder status for stock items under the stock group electronics.To remove those items for which there is no order to be placed, click on the buttonReorder only.In particular, you have the following information: Apart from knowing the quantity to beordered, you are able to move your cursor on the fields and drill down for more relevantinformation.Name of the Stock ItemPress Enter on this for suppliers of this item and the details of their previous suppliesStock in handDrill down for Monthly inwards and Outwards Summary and further details.Sales Orders DueHence, Free Stock Available for saleReorder LevelDrill down to the specification sheet for the item which you can even modiy!ShortfallAs CalculatedMinimum Reorder QuantityAs determined from the specification. Drill down to the specification sheet.Order to be PlacedPrint this statement or sent it for action to place ordersAlter Reorder Levels and Minimum QuantitiesThere are two ways to alter/amend already specified Reorder levels and minimum orderquantities.1. Gateway of Tally→ Inventory Info→ Reorder LevelsIt’s a single menu without separate Create and Alter options.2. Drill down in the Reorder Status ReportAs explained above for the fields Reorder Level and Minimum Order Quantity drill downthese fields to amend specifications.

Purchases/Sales ManagementTrack additional cost of purchaseIf you enable this option, you are allowed to obtain a break-up of purchase costs, withoutthe need to separately debits ledger accounts for expenses. Typically, on Purchases, one isinterested in total costs and the break-up is of interest for analysis (except for expenseslike VAT or modvat, which are reclaimable). In such cases, you do not want to passaccounting entries for expenses, which are of no consequence other than lengthening yourledgers. For Example; you purchase from ABC & Co. 10 Pcs of Widgets @20/-=200/-.Expenses incurred= Tax-20/-, packing charges 15.40/-, Total Purchase cost 235/-. WhenTrack additional costs is enabled, you will pass the entry in either of following two ways:

Price LevelsCustomers can be assigned to specific price lists, called Price Levels in Tally, so that onlythe relevant price is used during entry of orders and invoices, before you begin creatingprice lists, you should decide whether you want various reasons; e.g., different types ofcustomers like wholesale customers, retail customers, export customers and so on. Eachcustomer type could have a different discount structure. Write down on a piece of paperthe price levels/bands that are required.

Activate Company Features[F11]Ensure that the company has been set up for accounts with inventory.The different features of a company can be selected or modified by F11 button.This button is available in almost all screens of Tally as you might wish to modifyit as your requirements change. The Company Features Screen is repro9ducedbelow:

Accept through each screen of company Features by pressing the Enter key (donot press escape) and return to Gateway of Tally.Alter Price Level NamesAlter the name of a price level, go through the same procedure as enable andcreate Price LevelsHow to Create and Use Price ListsGateway of Tally→ Inventory Info→ Price ListIf the price list option does not appear, confirm the activation procedure given inthe introduction above. From the list of Stock Groups:

Under GroupTo select a stock group whose items will be given prices.Price LevelTo Select a Price Level. This is the level to which a specific group of ledgers(customer accounts) will be assigned.Applicable FromThe date from which the price list is applicable.The columns are:SI NoA simple serial number to track the number of items in the price-list.


Name of ItemName of the stock item for which the price may be given.Quantities – From & Less ThanThese fields are repeated for an item and begin with a blank for 0 items and endwith a blank for any number of items. This is useful for quantity based pricing anddiscounts. A staggered quantity price structure can be created if needed.If no quantity based pricing is required, simply keep both the From and Less thanfields blank.Rate & Discount (if Any)For each quantity band give a specific price or keep the price the same for allbanks but give different discounts. Different methods can be given for differentitems.Previous Price List Rate and DiscountIf a price list existed before the applicable fromdate, it will be displayed.Cost PriceThe cost (based on the Cost method set for it) ofthe item is displayed to help deciding prices.Price Levels in Voucher Entry – InvoicingPrice levels automate invoice pricing and helpavoid errors. The entry can be configured toprevent using a different price than set:First configure to prevent changes to price settings in a voucherGateway of Tally→F12:Configure→ Invoice/Delivery Notes/Orders EntryThe Allow modification of ALL fields during entry should be set to No to preventchanges to prices. Setting it to Yes will allow overriding set prices.Now an example invoice entry:Gateway of Tally→ Voucher Entry→ F8: Sales→ as Item InvoiceA new field price level appears and it is already selected for the party on the basisof assignment made earliar. If a price level was not assigned in the ledger masterfor the party, the cursor moves to that field to allow selection. The cursor skips thefield in case the assignment was already made and the entry configured (throughF12 to prevent all changes. On selecting the stock item and the quantity, the priceis filled in automatically and the cursor skips the price fields again.

Additional Inventory VoucherTracking NumbersTracking Number provides link between two transaction documents. It also links stockitems with corresponding accounting entries and tracks the link subsequently (that is whyit is termed as Tracking Number). Subsequently. Tracking number would be useful wheninventory & Accounting transactions are separate events (e.g. Challan first and thenInvoice or Invoice First and then Challan)Rejection Inward/Outward NoteBasically Reg. In / Reg. out vouchers are made before the actual bill of purchase / sales isreceived. If you want to return goods due to quality reasons or due to other reasons beforethe purchase bill/sale bills is received, in this case reg. In/Reg/ out vouchers will beprepared.Set this option to yes, if you wish to record rejection of goods separately and not througha common Debit Note or Credit Note.

Exercise

1. Alter your stock item with:a) Stock Categoriesb) GosownsS.No. Name of Item Categories Godowns1. 17” Monitor LG Lalkothi2. Cabinet ACER Lalkothi3. Computer IBM Rajapark4. HDD A-Tech Vaishali Nagar5. Key-Board Intex Lalkothi6. Motherboard A-Tech Rajapark7. Mouse Intex Vailshali nagar8. Network cable Tikaro Lalkothi9. Processor Intel Vaishali nagar10. RAM A-Tech Rajapark11. Speaker Sony Vaishali nagar

2. Make a Price List for “Dealer’ for all the items with appropriate qty & TradeDiscount.

Inventory VoucherSession -7

Introduction of Inventory voucherPure inventory vouchers perform the same function in the inventory system as accountingvoucher in the accounting system, i.e., they too, are means of entering transaction. In thiscase, the vouchers record the receipt and issue of goods/stock, the transfer of stockbetween locations, and physical stock adjustments.If you have chosen but to integrate accounts with inventory, inventory vouchers will nothave any impact on the balance sheet stock figures. They separately maintain the stockbalances. However, you can configure Tally so that the inventory entries wouldautomatically update the balance sheet stock figure. (By choosing to integrate Accountsand Inventory in F11: Company Features→ Inventory Features (F2))

Type of Inventory VoucherTally is pre-programmed with a variety of inventory vouchers, each designed ot perform adifferent job. the standard voucher are:

1. Purchases order (Alt+F4)2. Receipt note voucher (Alt+F9)3. Rejections-out voucher(Alt+F6)4. Sales order(Alt+F5)5. Delivery note voucher (Alt+F8)6. Rejections-in voucher (Alt+F6)7. Stock journal voucher (Alt+F7)8. Physical stock voucher (Alt+F10)

Unless you have Tracking numbers activated in F11:Company Features→ InventoryFeatures(F2), the Goods In Receipt Note and Goods Out Delivery Note vouchers will notbe activated. Tally will assume the goods are received along with Purchase vouchers andgoods are delivered along with sales Voucher/Invoices. When tracking numbers areactivated, you inform Tally that you may receive goods that are not accompanied bySupplier’s invoice the invoice will arrive separately. Also that you may not deliver goodstogether with your invoice you may invoice latter.Note: you are allowed, however, in a voucher, to select ‘Not Applicable’ when the tracking number sub-screen comes up. This wound update inventory right away without the need to pass a separate inventoryvoucher. The vice-versa is also true. See advanced voucher entry for more details.

Purchase OrderTally permits you to produce purchase orders from the system. Purchase orders may beproduced, printed and sent to suppliers. Goods received are linked with the Pos andInvoices. Outstanding Purchase order should be monitored. In the chapter: voucher Entry,we have shown how orders are linked with delivery notes and invoices. Hence, we willonly consider creation, alteration and deletion of purchase orders here. Display orderposition of any item from the Stock Summary. The purchase order book will list out allthe purchase orders placed.Activate Purchase Order processing in F11: Company Features→ Inventory Features(F2).

How to create a Purchase orderPurchase order details will also depend on configuration setting. Hence, have a look at theconfiguration and voucher types.

Gateway of Tally→ Inventory voucher→ Select Purchase orderParty’s A/c NameGive the supplier’s name. type in the same manner as voucher entry and selectfrom list of ledger accounts. Use [alt]+[C] to create a new account.Order NoThe voucher number can be treated as your Purchase Order number. You mayconfigure the voucher type through inventory info→ Voucher Types to setprefixes and suffixes for purchase Orders. This particular order No. field is anadditional field to record order number if different from the voucher number.Name of the itemGive the name of the stock item for which the order is to be placed. Once thename is given the item allocations sub-screen pops-up that needs to be filled in.Additional Cost DetailsAdditional cost on the item may be incurred which can be mentioned here. Giveby way of percentage of the item cost or a flat amount. If not, select End of list.

Additional costs increase the value of the item and do not independently appear inthe nominal ledger account or expense.Next ItemThe cursor then comes to the item field once again and you can enter another itemto order. If no other item is required, press [enter] on the blank field to take thecursor to the tax/expense field.NarrationOptional, You may give some particulars about the order.

Alter a Purchase OrderYou can alter a purchase order by displaying it from a variety of placebut is easier through the Purchase orders books or the day book.Gateway of Tally→ Display→ Day bookOrGateway of Tally→ Display→ inventory books→ Purchase Ordersbook

Delete a PurchaseAlter an order and use [Alt]+[D] to delete it.

Receipt Note voucherFor recording goods received. For example, the company receives new stock from asupplier. If a purchase order exists for that supplier, selecting it will bring up the orderparticular.

Goods received against purchase order.

Rejection-out Voucher

For recording of gods that are rejection and returned to a supplier. For example, thecompany returns items that had previously been taken in to stock to the supplierRejection Out against the Receipt Note

View order PositionStock summary is perhaps the best place to view the order position.Gateway of Tally→ Stock Summary→ Detailed [F1]

Sales OrderTally permits you to produce Sales ordersfrom the system. Sales orders received arerecorded in sales order Entry screen. Thedetails are available during Delivery Note andinvoicing, You may view the order position inthe stock Summary. The sales order Book listsall sales order received.Activate sales order Processing in F11:Company Features.How to Create Sales OrdersSales order entry is exactly like purchase orders. Sales Order details will also depend onconfiguration settings. Hence, have a look at the configuration and voucher types.Gateway of Tally→ Inventory Vouchers→ Select Sales Order

Party’s A/c NameGive the customer’s name. Type in the same manner as voucher entry and selectfrom list of ledger accounts. Use[Alt]+[C] to create a new account.Order NoThe voucher number can be treated asyour internal serialized order number.The field order No. is advised to be usedfor customer’s order number.Name of the ItemGive the name of the stock item for which the order is to be placed. Once thename is given the item allocations sub-screen pops-up that needs to be filled in.

Due onThe due date for delivery on the item. This will enable monitoring of outstandingdeliveries. The order can be split for delivery on different dates.LocationIn case multiple location feature is active, this field is required to be given, else itdoes not appear.Quantity, Rate and AmountGive the quantity of the item required and its rate. The amount is calculated but ismodifiable to enable rounding off.Next ItemThe cursor then comes to the item field once again and you can enter another itemto order. If no other item is required, pres [enter] on the blank field to take thetax/expense field.

Alter a sales OrderYou can alter a Sales order by displaying it from a variety of place butis easier through the sales orders Book or the Day book.Gateway of tally→ Display → DaybookOrGateway of Tally → Display→ inventory Books→ Sales orderDelete a Sales orderAlter an order use [Alt]+[D] to delete it.

Delivery Note VoucherFor recording goods delivered to a customer. For example, the company deliver goodsfrom stock to a customer. If a sales order exists for that customer, selecting theappropriate sales order will bring up the relevant particularGoods Delivered against the sales order

Rejections-in VoucherFor recording goods received back that was rejected by a customer. For example, thecompany takes back into stock items rejected by a customer.

Rejected goods inward

View Order PositionStock summary is perhaps the best place to view the order position.

Gateway of Tally→ Stock summary→ Detailed [F1]

Stock Journal VoucherFor recording stock transfers from one location to another. For example, the companytransfers items of stock from the warehouse to the shop.

How to create a Stock JournalGateway of Tally→ Inventory Voucher→ [ALT]+[F7] or click on stock journal

A stock journal is used to transfer materials or stock from one location to anotherlocation. Stocks could even simply be shown as consumed. Or even only produce withoutboth consumption and production. Hence, it is not like other journal where debits andcredits must match.The stock journal screen has three parts the top part accepts general information, the lefthand side is the source location consumption Part and the right hand side is theDestination location or the production Part. While you must the common informationrequired in the top part, you may elect to give information for only the left or the rightpath both.Common information

Reference, date and voucher numberIf activated for this voucher, reference field will come up. Give a referencenumber, if required. Voucher number depends upon the settings in Voucher Type.SourceHere give the name of the item and the location from which it moves or where itis consumed as well as the rate and amount. If the rate is specified in the stockitem master, it will be brought up when you indicate the item name.

Note: the effect of entry in this part is of reducing stock of the items specified.DestinationHere give the name of the item and the location into which the named item moves.It is not necessary that the item names should match the names in the source part.This is because of a totally new item could be produced Out of materials

consumed. You can specify the rate of the item and amo9unt. If the rate isspecified in the stock item master, it will be brought up when you indicate theitem name.

Note: the effect of entry in the destination part is of increasing stock of the items specified in this part.

View stock transfer PositionGateway of Tally→ display→ inventory books→ stock transfer

Bills of MaterialsA bill of materials contains a list of items that make up another item. In other words, it isa list of constituent items.Enable bill of materials facilityThis is relevant for manufacturing organizations and can be set up through configuration.Gateway of Tally→ F12: Configure→ Accts/Inventory Info

A Bill of material should be available while manufacturing an item. Hence, first enablemanufacturing entries. This is done through a stock journal. It is wise to create a newvoucher type, say, Mfg Journal which is based on Stock journal.

Stock Journal as Manufacturing JournalStock journal vouchers have a question ‘Use as a Manufacturing Journal’.Gateway of Tally→ Inventory Info→ Voucher Type→ Alter→ Stock JournalHow to create a new Manufacturing JournalGateway of Tally→ Inventory Info→ Voucher Type→ Create

NameGive a new name to the voucher type, e.g., Mfg. Journal. It could be any other name.Type of VoucherThis must be Stock Journal. Pick it up from the pop-up list.Abbr.The abbreviation to the voucher type name.Type in a suitable abbreviation, e.g. Mfg. ormfg.jrnl.Method of Voucher numbering etc.Follow the normal voucher type creation.Refer the voucher type section of the manualfor more details.Use as a Manufacturing JournalSelect yes.The other arias of voucher type screen have been discussed under voucher typesection. Please refer to that section for any assistance.

How to create a Bill of MaterialYou can create a bill of material (BOM) for any stock item. Typically, you would like tocreate a BoM only for those items that are being assembled in-house. For trading items,you do not need a BoM. Therefore, we need to specify a BoM at the time of creating astock item (or altering its master)Let us create a new stock item and specify its BOM.Gateway of Tally→ Inventory Info→ Stock Items→ Create

Unit of manufactureGive the appropriate (usually the minimum) number of the finished product item that willbe made. While manufacturing (and recording through a stock/manufacturing journal),you will make the item in multiples of this unit of manufacture.

Note: However, that in certain circumstances, it is better to give a larger unit of manufacture, e.g., per1000 Pcs of Nails, as per nail consumption of raw Material will be too insignigican.

Item, Location (godown) and QuantityGive the component name and quantity and, if multiple locations (Godown) have been setup, the most likely location for the item.The stock journal/manufacturing journal entry screenGateway of Tally→ Voucher Entry→ Click on Stk. JrnlIf you had created a new voucher type Mfg Journal, a pop-up menu will show both the

default Stock journal and Mfg. Journal.Select Mfg. Journal

Input fieldsName of ProductFor the stock item to be manufactured.LocationGive the location in which it is to be manufactured. This location will show the stock.QtyGive the quantity of the item to be manufactured.Component (Consumption)The component list for the product to be manufactured and the proportionate quantityof each component (based on the quantity specified for the product) is produced. Thedefault location as specified in the BoM is also give for each component. However,

the entire component list can be altered, components added or removed and locationsamended.Note: any change may during this entry will not affect the original bill of Material for this product.If want to make permanent change to the bill of material, change the stock item master information(Thru Gateway of Tally→ inventory Info)Cost of componentsThe base cost of the components are automatically added and displayed.Additional cost componentsYou may specify additional Cost for producing the item. These would, typicallywages, power, freight etc. Remember that you must have ledger accounts opened forthe additional costs. Moreover, additional costs entered for the ledgers, don’t reflect inthe relevant ledger with amount but only at to the cost of the item. You can specifythe additional cost by way of a percentage of the cost of components, in which givethe number, e.g., 2 for 2% of the cost of components. You may, alternatively skip thepercentage Field and input and amount directly.Total Additional CostThis displays the total additional cost for the item.Effective CostThis is the some total of the cost of components and additional costs.Effective RateEffective cost per unit of item/Product produced.If you want to alter the related manufacturing/ Stock Journal, you must alter itseparately, in the normal manner. It will be available throughDisplay-inventory Books—Stock Item or through Statistics—Mfg or StockJournal.

Physical Stock VoucherFor recording actual stock as physically verified or counted. For example, stock foundon conducting a stock-check. It is not usual that the company finds a discrepancybetween the actual stock and the computer stock figure. If you have configured yourinventory vouchers to ignorephysical stock differences,thesephysical stock vouchers will reallybe for recording purposes only.However, if you have configured the vouchers not to ignore physical stock difference,then all transactions subsequent to the physical stock voucher will use the balance asmentioned in that voucher.

Exercise

1. Aug. 10 : Place an order (RC/Po/01) to Shyam for 30 key-bpards & 5 computers.2. Aug. 17 : Item received (RC/GRN/01 use as Tracking No. Also), from Shyam :

(i) 25 key-board : Rs. 400/-(each)(ii) 5 Computers : Rs. 27,000/- (each)

3. Aug. 20 : 5 keyboard return to Shyam (Against Tracking No.)4. Aug. 28 : Bill received form Shyam (Against Tracking No.)5. Sept 9 : Payment made to Shyam Rs. 20,000/- by Cheque6. Sept. 22 : Sales order (RC/SO/Nitin/011) received from Nitin for :

1. 2pcs. of Computer s2. 3pcs. of HDD3. 7pcs. of mouse4. 7pcs. of keyboard5. 2sets of speakers

7. Oct. 10 : Goods Delivered (RC/DN/01) to Nitin with 5% sales tax @2% surcharge& Invoice raised on same day. Computer = 28,000 (each), HDD = 2,800, mouse =500, keyboard = 850, speakers = 1,200

8. Oct. 17: Return 5 keyboard from Nitin against bill.9. Oct. 22: Payment received Rs. 30,000/- by cheque & Rs. 20,000/- Cash.10. Nov.12: Payment made to Shyam Rs. 50,000/- by cheqe & Rs. 25,000 cash by

nitin11. Nov. 20: Payment received from Nitin Rs. 25,000/- in full settlement by cheque.12. Dec.3: Payment made to shyam Rs. 50,000 in full settlement.

Hint: 1. Match Trial Balance = 9,40,917.602. Match stock Summary = 4,37,815.00

Advance Configuration [F12]

Advance Configuration [F12]Session -8

Operation ConfigurationBefore starting work on the company, it is advisable to configure itby pressing F12button at the end of the button bar, which will bringup the following screen:Gateway of Tally →F12: configure

GeneralThis has already been configured by you under country Specificconfiguration beforeCreating the company. It caters to country specific requirement.The option available under F12: Configure General is, CountryDetail, Style of Names, Style of Dates, Configuration of Numbersand Other Options. The screen appears as:

The Configuration settings of Country Details, Style of Names, Style of Dates andConfiguration of Numbers are self-explanatory. Make the necessary selection and acceptthem.The configuration options given under Other Options are explained as follows.Show Monthly reports with GraphsThis option is set to YES by default. Here the reports are configured to display theGraphs in accordance with the numeric information displayed. The Graphs are notdisplayed if this option is set to noUse Separate menu for final A/c StmtsBy default, this option is set to YES. Setting this to NO Tally displays the final statementof Balance sheet and P & L Account Directly on the Gateway of Tally menu. However,setting this option to YES- the final statement of balance Sheet and profit & LossAccount can be accessed from Gateway of Tally menu- Final Account.

Print State and PIN Code with addressBy default, this option is set to NO Setting this option toYes, will allow you to print thereports with state and PIN Code Detail entered in the company creation Screen.

Note: if you already have a company created with state and PIN Code in the address Field, then you needto set this option NO.

Ignore Errors and Continue During the Data importBy default, this option is to no. setting this option to Yes, will continue to import even ifan error is reported.

Numeric SymbolsThis enables you to set the number styles. Default are also given. You may change themby overwriting. For Example, change Negative Sign(-) To only ().

Accts/Inv info ConfigurationThis gives control over what details should appear in themaster over and above those provided as default. This isavailable in the accounts and Inventory master screensthrough the F12 button and can be modified accounting tothe needs at any time.

Voucher entry configurationConfigure different Features of you voucher entry Screen. The screen will filled up withvarying detail as specified here.

Other Features of convenience, e.g., Use payment/Receipt Voucher as Contra VoucherCan be activated here to effect transactions for funds transfer. By Design, Tally Allowssuch transactions only through contra Voucher.Like wise, You are not permitted to use journal voucher to be used for cash or BankTransactions. However, Recognizing Exceptional needs, You can over ride thatrestriction by activating the facility.


These are defaults and Should be changed if require. Please note that these are questionsask you and You need yes to activate the facility and no to deactivate it.

Invoice/Orders Entry ConfigurationConfiguring the InvoiceGateway of Tally→ F12: Configure→ InvoiceEntry/Delivery NoteSet the options as required.Please Note the last 2 option

1. Complete Accounting allocations inorder/Delivery Notes? Accountingallocation are not normally made duringorder recording/ Delivery Notes. Hence, It’sSet to NO. However, It’s permitted and,Should want it, Change it to Yes

2. Allow modification of all fields duringentry? Default order/Delivery Note Entries appearing in the invoice can bechanged during invoice entry. To permit modification of all fields set it Yes elseNO

ConnectivityTally has extensive internet connectivity. Email, Web-publishing and Data in interchangeover the internet are all easily achieved from within Tally. You should have an Internet Connection accessible from your computer. This

could be through a direct dial-up modem or through the network. For E-mail – an E-mail Account. For web publishing- you should know the sites URL (address) and have authority

to files on the sits.E-mailSend invoices to your customers by E-mail. Or you purchase order. In Fact, E-mail anytally report or document as easily as you print! Even Remainder letter and statement ofaccounts need not be printed and posted. Simply E-mail them. E-mail is the single largestuse of the internet and is set to penetrate Even the very small towns. You are uniquelyPositioned to take advantage of this medium. It’s not only postage cost that you save, yousave on so much of your valuable time.

E-mail a Reminder LetterSelect a customer’s outstanding statement from statements of accounts.Click the E-mail button.These are various option that are automatically field in if the information had beenSupplied in the master records. Check if the details are all right. If they are, select Yes,Yes if not Select no to change the options. The Cursor first goes to the to E-mail AddressField as it seeks to save you time in skipping standard information. However, if you wishto change them, e.g. the format, use back- spaceThe option are:E-mail server(Mandatory field)Give the Name of your E-mail SMTP server, e.g., mail bt internet.Com. it should be avalid SMTP Sever that will accept sending your mail. If in doubt, refer to you internet

service provider or ask your Network Administrator. you need to give this only the firsttime You use E-mail Services of Tally. Next time on wards, Tally will remembers.FromYour company name is Picked up from company information Master records.From Mail addressYour own E-mail Address. It is picks up the address given the company InformationMaster Data. If it does Exist there, You will be required to fill it in.FormatFour Formats are available for Selection:

ASCII (Comma delimited) HTML (web Publishing) SDF (Fixed Width) XML (Data Interchange)

Select the one required by your recipient.

To E-mail Address(Mandatory field)This is for the recipient’s e-mail address. A valid e-mail address is required.CC (if any)For coping the mail to another recipient.SubjectThis is pre-field for you. Change it to any other meaningful subject.Additional TextThe text in this will appear as the first line in the massage body of the reception’s mailprogram. The other options are the same as in print option and are self Explanatory

Internet PublishingWeb sites most businesses will have on in the near future. Tally helps make, commercialuse of your web space with the ability publish all reports and document on your web site.You can use this features to inform customer the new Price range the stock available forsales. Tally has ensured that this transmission of data is secure by using world standardencryption of data.

UploadAny report or statement or data can be published on the internet. Publishing is

carried out by uploading the report to an Internet server that has been configured to acceptfiles in specific protocols. A site is a basically a specific directory space allotted to you toyou on that sever. Protocols are sets of rules and specifications on how data and files aretransferred over a network and cover all aspects of communication between computersincluding content, formatting and error control.Say you want to publish your price List on Your websute.

1. Select the Price List from Inventory Information.2. Click the Upload button.

The first time you upload, you have supply Tally with some information Therefore selectNo to the question Upload?

Upload to FTP SiteThis is a site that accepts files transfers in FTP. A FTP site is a directory space in a serverthat accepts FTP connections called the FTP server.


FTP or File Transfer Protocol is the most common choice to transfer data or files of anytype to an internet site. You will use this unless you know that your site accepts HTTP orHTTPS uploads.

URLShort for Universal Resource Locator that tells Tally the server address where you wantyour report published. If you are using FTP you will need to know the FTP server Nameand directory path. The FTP sever name is the domain name of the Web server to whichyou are publishing (for example, ftp.server.com) the directory path is the folder on thesever where your web is stored (for example, /public_html). For a web page, an URL willtypically be in the form www.myweb.com.]

Secure serverIf you select web page to, this question seeks to know whether you want to use a secureconnection. Select Yes, If you think your data is sensitive and provided your server isconfigured for it. A secure site is one that has the‘s’ with know it is a secure site whenyou see in your browser URLs like https://mybank.com/myaccount/States.htm.

User Name and PasswordYour internet server wants to know who you are before permitting Tally to put in data andfiles on the site. If you are unsure about your user name, Password, or FTP location,contact your Internet service provider.

File NameA file name is proposed if you have select FTP Site to Upload to. Accept it as it is ormodify only if necessary.

FormatThe Same four format options are available. Select the most appropriate to your needs.An explanation on each format has already been given under the E-mail section.

Web BrowserYou have a button to access the World Wide Web from Tally. Click on the button WebBrowser to begin your session. When you want to end it, press End Browser. Of course,you should have a valid internet access account set up on your computer and a browserthat is already installed.

Licensing MenuTo view the licensing menu, follow this path: Gateway of Tally→ F12: Configure→LicensingSingle-UserThe screen given below displays the options available in License menuFunction/FeaturesThis option allows you to view the Function/Features enabled in tally.

Menu Path: Gateway of Tally→ F12: Configure→ Licensing→Functions and Features

ProductsThis option displays the information of the TCP (Tally CompliantProduct), which is available for that particulars instance of Tally.

OnlineThe term Online indicates that your computer is connected to the Internet.OfflineThe term offline indicates that your computer is not connected to the Internet.QuitThis option enables you to quit the licensing menu.

Multi-userIn multi-user system. The license menu of the License server displays all the options thatare available for single-user system.

ReportsSession -9

Features of ReportsTally prepares the books of account and financial statements based on the vouchers youhave entered to date. You can then very the appearance of reports according to yourneeds, for example, to make comparisons between different companies, periods of thefinancial year, groups and ledgers. In each case, when you display a report, you can step-down to the next level of detail by highlighting the item and pressing Enter, and you cankeep going until you reach an individual voucher. Similarly, you can step back to higherlevers by pressing [Esc]. The special features available for the currently displayed reportare indicated on the button bar, and can be selected with a single click of the mouse.

Accessing reportsThe Gateway of Tally menus provide access to all the financial reports, as in the diagramopposite. For example, if you want to view the sales Register then, in the Gateway of tallymenu select Display, account books and Sales register in turn, and Tally will display thereport for the currently selected period.Modifying ReportsOnce you have selected a report and its screen appears, you can modify the display to suityour requirements using the appropriate buttons on the button bar. You will get to knowthe functions of the various buttons as you become more familiar with Tally but somebutton bar. You will get to know the functions of the various buttons as you become morefamiliar with Tally but some buttons perform similar functions in all reports, providingthey are appropriate to the screen you are viewing.If you select the buttons using the keyboard, the conventions are:

F1: Detailed/CondensedAdds a further level of detail to the report, or condenses the report to a higherlevel of detail.F2: PeriodEnables you to change the period of the report by specifying new from/to dates.F3: CompanyIf you have more than one company selected, this button enables you to changecompanies to display the new company data in the current screen format.F4: to F10:The functions performed by these buttons vary from report to report.F11: Company FeaturesThe button is not related to displaying reports but to selecting options that affectvoucher entry. The screen it displays must not be changed during training.F12: ConfigureThis button is very relevant to displaying reports and enables you to define thereport-specific options you wish to use. For example, depending on the report youare in, you can specify whether it should be in horizontal or vertical format, showpercentage, show percentages, show gross profit, show opening and/or closingbalance, change the periodicity, change the sorting method, and so on.

F12: RangeThis button enables you to filter the information you see displayed based onmonetary value. For example, you can specify you only want closing balancesgreater than £5,000.F12: ValueThis button enables you to filter which vouchers you wish to be used in thecalculations. For Example, you can specify you only want vouchers having anarration containing the cash transactions.New columnThis button enables you to add another column to the report to display comparableinformation for another company, or for a different period for the same company,all on the same screen.Alter ColumnThis button enables you to alter the details of a new column you have previouslycreated, for example, the date range. You select the column to alter by positioningthe cursor in it prior to selecting the button.Del ColumnYou use this button to delete columns you no longer wish to see in the report.Auto ColumnYou use this button to add multiple columns to a report, for example, columns foreach month, or to accommodate several companies. You can also have a totalcolumn for the total of each item across all columns.

Balance SheetThe Balance sheet gives the state offinancial affairs of a company on a givendate. It lists out the Assets and Liabilitiesbased on the Primary Groups of Tally. TheBalance sheet in Tally is updated instantlywith every transaction voucher that isentered and saved. No special processingis required to produce a Balance Sheet. Toview the Balance Sheet:Gateway of Tally→ Balance Sheet

Horizontal From of Balance SheetThe above example is of the horizontal form. It could be set up to appear in the verticalform. You can extract different information by using the various options in the ButtonBar.

1. Select Detailed to explode the summarized information2. Change the date of the Balance Sheet using F2: period.3. Bring up new columns and4. Select a Balance sheet for a different date to compare alongside the present

date or5. Select a column to give the balance sheet in a different currency or6. Select a column with Budget figures and analyze variances or7. Select a column and see the effect of different Stock Valuations on the

profit/Loss

Balance sheet ConfigurationShow vertical Balance SheetNo will display Horizontal form. Yes willdisplay vertical form. In the British/Europeconfiguration the vertical Balance Sheet willhave the titles Liabilities and Assets whereas theIndian/Asian Configuration will have sources ofFunds as titles.Profit or loss, both as LiabilityApplicable only in the Horizontal form. If no, then Loss moves the Profit & Lossaccount to the Asset side of the Balance Sheet.Show PercentagesEach line will be expressed as a percentage of the total.Show Working Capital figuresTo show current Assets-Current Liabilities.

Method of showing the Balance SheetThe options are: Liabilities/ Assets andAssets/Liabilities. This is simply the order in which theBalance sheet is shown:For Horizontal Balance Sheet it is in the format: LeftHand side/right hand sideFor vertical Balance sheet it is in the format:Top/Bottom.

Vertical Form of Balance SheetSelect the Format using F12: Configure. This Balance sheet is in the UK/EuropeStyle where Assets are given first. The default order Is, However, Liabilities/Assets. In India/ Asia Style, the Vertical Balance Sheet will be:Columnar Balance SheetsSelect a Balance sheet for a different date to compare alongside the present date:Select New Columnar keys Alt+C and change only the period.

Profit & Loss AccountThe profit & Loss account shows the operational results for a given period. It lists out theincomes and expenditure based on the Primary Groups of Tally. The Profit & Lossaccount in Tally is updated instantly with every transaction voucher that is entered andsaved. No special processing is required to produce a profit & loss account. The Profit &Loss account is displayed according to the configuration set up for it in F12: Configure.To view the profit & loss account:Gateway of Tally→ profit & Loss Account

Horizontal Form of Profit & LossAccountThe above example is of the horizontalform. It could be set up to appear in thevertical form. You can extract differentinformation by using the various optionsin the Button Bar.

1. Select Detailed to explode thesummarized information.

2. Change the date of the P&LAccount using F2: Period.

3. Bring up new columns and:4. Select a Profit & Loss Account for a different period to compare alongside the

present period or5. Select a column to give the Profit & Loss Account in a different currency or6. Select a column with budget figures and analyze variances or7. Select a column and see the effect of different stock valuations on the

Profit/Loss.Configure the Profit & Loss AccountShow Vertical Profit & Loss AccountSelect the format using F12: Configure. Thevertical form always shows the Tradingaccount and the Income statement separately.Show PercentagesEach line will be expressed as a percentage of sales Account, i.e., sales accountswill be 100% and the rest of the lines will be a percentage of sales accounts.Show with Gross profitApplicable to Horizontal from only. The Profit statement is split to show tradingprofit considering only the Cost of sales and direct expenses. From the grossprofit, indirect expenses are deducted to show net profit. If no, the Profit & LossStatement is not split to show gross and net profit separately. In Vertical from, thetrading account shows the gross profit and the income Statement, the Net Profit.

Columnar Profit & Loss Account: Some ExamplesSelect a Profit & Loss Account for a different period to compare alongside thepresent period. Select New Column or keys ALT+C and change only the period

Stock SummaryStock summary is a statement of stock in hand on aparticular date. The statement is updated with everytransaction so that it provides current stock position atany time. The statement can be drilled down as with allTally reports, and configured to view different details.Indeed, It’s possible to see the total flow of stock on asingle report. Experiment with the different buttons forthis purpose. Tally treats stock summary as one of the primary statements and makes itaccessible directly from the gateway of tally. To view the Stock Summary:Gateway of Tally→ Stock SummaryThe default display is that of stock group balances. Select Detailed to show another levelof detail. This could be sub-groups or directly stock items in cases where there are nosub-groups. The stock groups show total quantities. This is because the unit of measure isthe same for all the stock items that have been set up to have quantities of items added.The stock group services, does not have any balance. This is because of the original set-up of the Services items, where stock is valued at Zero Cost and all sales are treated asManufactured. Note that there is a grand total too because of a single unit of measure ,then there would not be a grand total.

Stock Flow (reconciliation)The stock summary statement can be configured to display the flowof goods.Select F12: Configure while in the Stock Summary screenSet the configuration as given above.This statement shows the flow of stock: Opening Stock, GoodsInwards, Goods Outward and Closing Stock.Stock Valuation Methods

Stock Summary with different stock valuations serves to show the effect of differentmethods on the value of stock. Most popular methods are available. Each stock itemcould be set up to have a different stock valuation method as default. However, there areoccasions when another method of valuation is needed, for example to assess thereplacement value or the saleable value of stock. Tally shows the stocks in any or all thevaluation methods dynamically and simultaneously without going through complicatedprocedures.

Last Purchase Cost method can be used to assess the replacement value whereas Last SalePrice for realizable (saleable) value.While in the Stock Summary, select new column Select defaults for all except stockValuation MethodStock Group SummaryThis report is available only if the option in company features: Integrate Accounts AndInventory is set to No.The statement shows the Opening and Closing Stock figures that have been input in theledger account master rather than picked up from the Stock Summary. Hence, the stocksummary figures and the stock group summary will show different figures.The ledger account belongs to the stock-In-hand Group.Drill down the stock Group Summary to reach the stock Ledger account where theclosing lance for a given date can be input. Different closing Stock figures can be put infor different dates that will remain effective till the next figure. The relevant figure for adate is picked up into the Balance Sheet and Profit & Loss Account.

To get to the stock Group Summary,Gateway of Tally→ Profit & Loss Account→ Opening Stock(or Closing Stock)

Ratio AnalysisGateway of Tally→ Ratio Analysis

The Ratio Analysis statement is a single sheet Performance report for a selected period. Itgives important values and key performance indicators for the company. It’s one reportthat top management need to look at to know the state of the company’s financial healthand where it is going in the short term.The Ratio Analysis Screen is divided into two parts: Principal Groups and PrincipalRatioThe Principal Groups are the absolute key figures that give perspective to the ratios.Principal Ratios relate two pieces of financial data to get a comparison that is moremeaningful when compared with ratio of other companies.

Principal Groups and Key FiguresWorking CapitalTally follows the Accountants’ definition and is the Net working Capitalcalculated as Current Assets less Current Liabilities. Financial Analysts oftenmean total Current Assets as Working Capital. This is a measure of the extent thefirm is protected from liquidity problems.Cash in hand and Bank BalancesThere are indicated in the Ratio analysis screen to give the liquidity perspective.Sundry Debtors(due till today)These are two figures, total debtors and debtors that are due as on the date of theStatement.Sundry Creditor(Due till today)These are figures, for total Creditor and those that are due as on the date of theStatement.Sales and Purchase AccountThese show the trading activity for the periodStock in handThis is the stock in hand as on the report. Together with Cash and Bank Balancesand Debtors, Stocks complete the Current Assets aspect of Working Capital.Net ProfitThis is derived from the profit & Loss account and is the profit after all direct andindirect expenses.

Principal RatiosThese should be compared to industry averages, as well as for other periods to assesscurrent period’s performance.

Working Capital TurnoverSales/Working CapitalThis is an activity or efficiency ratio that shows the number of times the workingcapital has been rolled over during the period of the report. It depicts howeffectively the firm is using its working capital.Inventory TurnoverSales/Closing StockThis is an activity or efficiency ratio that shows the number of times stocks hasbeen rolled over during the period of the report. It depicts how effectively the firmis using its inventories.Current RatioCurrent Assets: Current LiabilitiesThis is a liquidity or solvency ratio and is the most oft-used ratio for assessing thecapability of a firm to meet its short-term obligations. It specifically shows afirm’s ability to cover its current assets with current liabilities.Quick RatioCurrent Assets-Stock in Hand : Current LiabilitiesThis liquidity or solvency ratio is also called acid-Test Ratio that concentrates onmore liquid of the current assets or measure a firm’s ability to meet its currentobligations. It is thought that stocks and inventories are the least liquid of allcurrent assets and hence a firm might become insolvent if its current assetscomprise a high proportion of inventories.

Debt-Equity RatioLoans (Liability: Capital+ Net Profit)This is a gearing ratio that shows the extent to which long-term debts is used tofinance the firm. It shows the proportion of borrowed funds to owners’ Equity.The lower the ratio, the higher the amount of funds invested by the owners’. If theratio is high, it indicates that borrowed funds are more than own funds and thefirm, which makes the firm lower credit-worthiness.Gross Profit %This is the trading profit before indirect expenses and taxes expressed as apercentage of total sales. It measures the efficiency of a firm’s operations as wellas indicates how products are priced.Net Profit %This is the profit after all expenses including direct and indirect expenses butbefore taxes expresses as a percentage of total sales. It is a more specific measureof the efficiency of a firm’s operations.By considering both Gross Profit % and net Profit % together, we are able to gainconsiderable insight into a firm’s operations and the part played by the direct andindirect expenses.Operating Cost%As a percentage of Sales AccountsThis is total cost including direct and indirect expenses but before taxes expressedas a percentage of sales. A high ratio shows that even a slight rise in costs wouldbe risky and might necessitate increase in price.Return of Investment %(Net Profit/Capital + Net Profit)%Net Profit here is Profit after all expenses but before taxes. This is a profitabilityratio that an investor is most interested in. The investor needs to know how muchis earned on each dollar invested. If the investor finds other avenues that givebetter returns, he will move his money from the firm.Return of Working Capital %(Net Profit/Working Capital)%This is another profitability ratio that ignores sunk costs in fixed Assets andassesses how profitably a firm uses its net current Assets.Receivable Turnover in DaysPayment Performance of DebtorsIt’s an efficiency ratio that measures the quality of a firm’s receivables and howsuccessfully it collects its debts. Receivable Turnover in days is a figure that tellsus the average number of days that receivable are outstanding before beingcollected. It should be compared w9ith the average credit policy of the firm.

Display ReportsDisplay Trial BalanceGateway of Tally→ Display→ Trial BalanceThe Trial Balance Report provides account balance listing for allaccounts for the company sorted according to groups, i.e., the TrialBalance is displayed in grouped form with main grouped form with maingroups and their closing balances. The fact that the debit and creditbalances match proves the arithmetic accuracy of the entries.

In tally, the matching of the Trial Balance is a foregone conclusion as all voucher entriesare in the debit and credit format and must balance at the entry point.Note: As per accounting principles, the Trial Balance does not list Closing Stock.

You can drill down a Group for further details of that particular group.OrSelect Detailed to break down the grouped information to another level.OrSelect Led-wise to take an alphabetic listing of all ledgers and their closing balances.Select Column to bring up the closing balances for another date.

Account Reconciliation StatementTake a single report that shows the flow of the acco9unts from Opening Balance to theeffect of transactions on closing balance.Select F12:ConfigureSet the options as below:The trial balance reconciliation statement is produced:

Day BookGateway of Tally→ Display→ Day BookThe Day Book is a list of all transactions for a particular day, by default the current date.It can also list all the transactions for a period. Transactions include all financialvouchers, reversing and memorandum journals as well as inventory vouchers.

Day Book for the current date:

Day book for a period:Press Alt+F2 to change the period:

Account BooksCash/Bank BooksGateway of Tally→ Display→ Account Books→ Cash/Bank Books

Statement of AccountsOutstandingReceivables and payable

Receivables and Payable are the two key components of anycompany’s working capital as well as its business activity.Receivables are part of current assets, whereas payables are ofcurrent liabilities. Both influence the short-term liquidity andfinancing of the company considerably. Effective control of theseoutstanding is necessary for the company to be financially sound. Toview the Receivables and Payables screen

Gateway of Tally→ Display→ Statement of Accounts→ OutstandingThe following screen displays.This report displays all outstanding receivables invoice by invoice till date. Rememberthat this report takes into consideration only those accounts that have Bill-by-Bill optionactivated.

DateThis is the Effective date of the invoice and not the actual date. Hence, if yourinvoice date is 15 November but the effective date is 30 November, 30-Nov-08will be displayed here. Credit period is calculated from effective dateReference NumberThis is the Bill reference number that was entered in the Bill-wise Details.Party’s NameThe ledger name appears in this field.Pending AmountThis is the outstanding balance on a particular invoice. To see the breakup, pressSHIFT + ENTER.If you want to see the breakup of all the bills, select the F1: Detailed button. Thistoggles with the button F1: Condensed.Due OnThis is the due date of the bill (with reference to the Effective date) specifiedduring voucher entry.Overdue by daysThis is the period in days from the due date to the end date of the report. In theabove example, the end date is 2-April-2008Drill-downYou can drill down any invoice for further details.ButtonsPrint the report or e-mail it or use other buttons to configure, make a query orchange the format of the report.Payables (Bills Payable)To view the Bills Payable screenGateway of Tally→ Display → statement of Accounts→ Outstanding→ PayablesNote: Payable is treated exactly the same way as Receivables.

Age-wise Analysis for bills outstanding1. Gateway of Tally→ Display→ Statements of Accounts→ outstanding→ receivables/

payable/ ledger/ groups2. Select the group3. Select F6: Age-wise and one of the two methods of Ageing.1. Ageing by Bill Date2. Ageing by due Date3. Set the age periods required for the report…

Bank ReconciliationReconciling the company’s Bank Accounts with the Banker’s Statement is a fundamentaland regular task of Accounting. Our first presentation of this facility aims to tackle twoissues.First, there should be the ability to ‘check back’ the correctness of the reconciliation. Thishas been done, by marking the ‘Bank Date’ against the voucher. For instance, if you haveissued a cheque on 8th April, which was ultimately cleared by your Bank on 19th April, -you would set the bank date for the voucher to be 19th April. This means, that when younext need to ‘check back’ whether the entry made by you is correct, you will only need toverify the bank statement of the 19th.Second, that you should be able to ‘recover’ the reconciliation as of any date. This is ofcrucial importance to Auditing. This Bank Reconciliation is one of the pre-requisites ofAuditing and verification of the correctness of accounts at the year end. However, it is nota ‘real-time’ task in the sense that it is not done by the auditor’s on the first day of thenext year. This means, that the reconciliation made on 31st Mar, should be ‘viewable’even in August, - by when almost all the cheques would have subsequently been markedas reconciled. This has again been achieved using the concept above.Bank Account may have a different ‘Starting Date’ for reconciliation purposes. When youcreate a Bank account, you are requested to give an ‘Effective Date for Reconciliation’

just before the Opening Balance. Normally, this would be the Books Beginning fromDate itself. However, You could have imported data from a previous version of Tally orfrom any other system (where the reconciliation process was not available or wasdifferent. In that case, you may not wish to reconciliation facility to be activated. Then,previous entries will not appear for reconciliation, but will be taken as a reconciledOpening Balance.

A quick experiment with Reconciliation will show you what is meant. Here is how you goabout it:

1. Bring up the monthly summary of any Bank Book.2. Bring you cursor to the first month (typically April), and press Enter, this brings

up the Voucher for the month of April. Since this is a Bank Account, an‘Additional’ button F5: Reconcile will be visible on the right. Press F5.

3. The display now becomes an ‘Edit’ Screen in ‘Reconciliation’ mode. The primarycomponents are: a Column for the ‘Bankers Date’

4. The ‘Reconciliation’ at the bottom of the screen, showing:5. Balance as per Company Books6. Amounts not reflected in Bank7. Balance as per Bank

The Balance as per Company books reflects your balance as on the last date (in ourexample case, 30-Apr).The Amounts not reflected in Bank is the debit and credit sums of all those voucherswhose bank date is either BLANK, or GREATER than 30-April (i.e. these vouchers havenot yet been reflected in the Bank Statement).The Balance as per Bank is the Nett effect of your Book balance offset by the amountsnot reflected in the bank which should equal the balance in the bank statement. (Ofcourse, some variation may persist due to entries made in the Bank Statement which youhave not yet entered in your books but since you WILL definitely enter them, and onlythen print your reconciliation, it will ultimately reflect the correct balance).You will find, as you mark off the individual vouchers by setting the ‘Bank Date’, that theReconciliation at the bottom screen keeps reflecting those changes instantly. When youare finished, press Ctrl+A(or press Enter as many times as necessary to skip over theunmarked voucher), and accept the screen. (If your screen has a largish number ofvouchers it may take some time to complete the acceptance be patient).The next time you come for reconciliation, you will be presented only with thosevouchers which remain unreconciled. Thus, the task keeps becoming simpler.

(It may be possible, that due to an error of entry made earlier, you wish to see thosevouchers which are already marked as reconciled so that you may modify their marking.To do this, press F12:Configure. In case you have already pressed a few keys BEFOREpressing F12, Tally will query whether you wish to discard changes made so far, if any,by asking ‘Quit Y/N’. Simply press Y and the configuration screen will appear. Here,specify whether you wish to see the reconciled vouchers also).Remember, to print your Reconciliation, just press Alt+P!Group SummaryGateway of tally→ Display→ Account Books→ GroupSummaryThe group summary statement shows the closing balancesof the accounts falling under the selected group for theperiod up to the current date. The standard view is that ofsub- Groups in the groups.

Group VouchersGateway of tally → Display→ Account Books→ Group VouchersSales register (sales day book)This explanation should be used for all day books and voucher register.Gateway of tally→ Display→ Account Books→ Sales Register

All registers first display the monthly summary with transaction and closing balance. For balance sheetaccount, opening balance will be given at the top. Select a month and press enter to see the sales voucherregister.This is a list of all sales vouchers for that month. Use the option in the button bar to change the details. Youcan change the period of the report as well as the depth of information. Use F12: Configure to see thereport with some or all of following details: narration, bill- wise details, cost centre details and inventorydetails. Click on Detailed to see all the detail selected.

Journals, Day Book and RegistersJournal, sales register, purchase register, debit note register, credit note register, payment register,receipts register, e.t.c..There are three ways to see different register:

1. From the display menu2. By changing the voucher type from within the register3. From the statistics page

We will discuss the sales register, which has the most options. Other Registers are similar. Please. Pleaseuse the same explanation (except for Invoice Profitability) for other registers.

Account Books and StatementsCost Centre/Categories ReportsFor conceptual information on Cost centre and cost Categories, please look up therelevant chapters under Accounts information.

Cost Centre Reports are primarily performance reports that give different views of howtransactions and their relation to cost centers.To access Cost centers Reports.Gateway of tally→ Display→ Statements of Accounts→ Cost Centers

Display Inventory Reports & StatementsTally prepares the inventory reports based on the vouchers you have entered to date. Youcan then vary the appearance of reports according to your needs, for example, to makecomparisons between different companies, periods of the financial year, and so on.In each case, when you display a report, you can step-down to the next level of detail byhighlighting the and pressing enter, and you can keep going until you reach an individualvoucher. Similarly, you can step back to higher levels by pressing [Esc]. The specialfeature available for the currently displayed report are indicated on the button bar, andcan be selected with a single of the mouse.In other words, inventory operates in exactly the same way as accounting regardingdisplaying, modifying and printing the reports, and so you can use the knowledge gainedduring the accounting module to good effect with inventory.Because it is very similar in operation, the function of the buttons on the button bar andthe various printing options are not repeated here. Instead, this unit concentrates onhighlighting some of the special inventory screens, before giving you the opportunity topractice.

Inventory BooksStock ItemsGateway of Tally→ Display→ Inventory Books→ Stock Item

Sales Order Book.

Purchase Order Book

Stock Transfer

Ageing AnalysisA very important function of Working Capital management is monitoring stocks.Money locked up in stocks can adversely affect the liquidity of a company andevery company strives or should strive to reduce stock levels to the optimum.Every business (except perhaps the liquor and antiques dealers) would prefer todispose of older stocks as they might deteriorate with time, go out of fashion, orsimply get forgotten. Tally’s aged stock analysis or stock ageing enables you toknow the age of stocks in hand according to when they were received and thepurchase value.

How to View Ageing Analysis1. Gateway of Tally→ Display→ Inventory Books→ Ageing Analysis→

Display→ Inventory Books→ Ageing Analysis2. Select the group of stock Items.

The Ageing Analysis report produces a default ageing period of (45 days, 40-90days, 90-180 days and) 180 days. You can change the setting by using F6. Thedefault report displays stock values based on Actual Purchase invoice. Use HideAmount to view the report without values as has been done above.Note: As Negative Stocks cannot be aged, they are shown in a separate column.Item Inward DetailsAge Analysis is done for stock-in-hand based on when it was purchased. The ItemInwards details statement provides further information of aged stock such as dateof purchase and supplier, and allows drill-down to the actual transaction voucher.

Go to Gateway of Tally→ Display→ Inventory Books→ Ageing AnalysisMove the cursor to any of the age-wise column (i.e.., <30days, 30 to 60 day,> 60Days) for an item and press Enter.

Godown Summary (Location Summary)

The Godown/Location Summary Statement Shows the Stock Summary for differentGodowns/Locations. While the main Stock Summary shows the stock position for theentire company on a given date, the Godown/Location Summery is a statement of stock inhand at each location on a particular date. As with all Tally statement, it is updated withevery transaction so that it provides current stock position for any godown/location at anytime. The statement can be drilled down a s with all Tally reports, and configured to viewdifferent details. It is also possible to see the total flow of stock for each location in asingle report.Gateway of Tally→ Display→ Statements of inventory→ Godown/Location

Sales Bills PendingGateway of Tally→ Display→ Statements of Inventory→ Sales Bills PendingSales Bills pending Report is created when Tracking Numbers option is active,It lists out all instances of incomplete sales where goods may have been delivered but notfully invoiced. It also lists instances of invoices raised but for which goods have not beendelivered.Purchase Bills pendingGateway of Tally→ display→ Statements of Inventory→ Purchase Bills PendingPurchase Bills pending Reports is created when Tracking Numbers option is active.It lists out all instances of incomplete purchases where goods may have been received butnot fully invoiced. It also lists instances of invoices received but for which goods have notbeen received.Reorder Status and quantities to orderGateway of Tally→ Display→ Statements of Inventory→ Reorder StatusSelect from List of Groups of Stock Items

Cash and Fund FlowsCash management is essential for any business. Many companiescontinue to be project profits even as they go into liquidationbecause of insolvency. Businesses close down because of lack ofcash despite being profitable. Cash and Fund Flow Statements aidin cash management and are an important component ofmanagement accounts

List of Accounts (Chart of Accounts)You create the chart of accounts from the Accounts Info menu.However, to view an existing chart:Gateway of Tally→ Display→ List of AccountsThe List of Ledger is displayed in alphabetical order of maingroups. Hence, Branch/Divisions is listed first and not the accountname Anil, which is under the group Capital. Note the indentationand change in font. The groups are in bold, and begin on theextreme left, sub-groups slightly indented towards the right and stillbold, while at the lowest level it is the ledger account, which is initalics and not bold.

Exception ReportsException report are reports that track unusual transactions orbalances. The different Exception Reports are:Gateway of Tally→ Display→ Exception Reports

1. Negative Stock2. Negative Ledgers3. Overdue Receivables4. Overdue Payables5. Memorandum Vouchers6. Post-dates Vouchers

Exercise1. Chech all the pending bills and orders for debtors and creditors.2. Display balance sheet and P&L in vertical mode.

Hint: 1. Match Profit & loss Accounta) When Account & Inventory are Integrated Loss: 61,942.00b) When account & Inventory Are non-integrated Loss: 59,757.00

2. Balance Sheet 6,68,597.00

Import & Export of DataSession -10

Import of DataImporting master dataGateway of Tally→ Import of DataA File containing the masters and vouchersexported from another Tally company datashould exist so that it can be imported andmerged with the data of the current company.On selection of All Masters/vouchers, you willbe required to give the source file name andformat in which it is to be imported. Give thefull path of the source file. Data may beimported in Tally from Tally 4.5 Format, orTally 7.2 Formats are inherently richer incontent. Lists of Accounts (Masters), andVouchers (e.g. Daybook), exported out fromTally ies 8.1 are in this format, and may beimported into another company or location. Atypical use of this facility is to export the daily vouchers from a Branch, and sent it to theHead Office for importing into the main Accounts.Tally’s design permits it to import any kind of data. It is capable of being programmed touse data from other systems much more easily. This permits you to continue using othersystems and use some of their data in Tally as if they were parts of one integrated system.

Export of DataExport of data is provided mainly for summaries and statement reports like Trial Balance,Stock Summary, etc. The main use would be to export data to, say, a spreadsheet, andreorganize it for statutory presentation. Or export it to another company using Tally thatwill import it directly.

Export Master DataGateway of Tally→ Display→ List of AccountsClick on Export

File NameThe file name is required and can be anything.FormatFour formats are available for selection ASCII, SDF, HTML, XML. Select HTMLonly if you want to publish or display it. If the export is required to import the fileinto another system, select any of the others.Type of MasterA wide selection of masters is available.

Import of MastersImport MastersEnsure that you have the Company activated where you want to import masters. Ifthe Company is not selected, load the Company. Select Import Masters. Type inthe file name. The name and path of the source file should match.

Import VouchersReturn to Gateway of Tally and select Import of data> Vouchers. Type the file name. Thename and path of the source file should match.

Tally ODBCTally captures all the information related to your business. There are many situationswhen you would like to get the information presented in a different format or wish someadditional input. With Tally 8.1, you can create a format in ODBC compliant applicationlike Ms Word or Ms Excel, plug tally data fields to pull data real time form live tallydatabase to create your on update report.The full form of ODBC is open database connectivity. It is a standard programminglanguage interface used to connect to data source. You install ODBC drivers for variousdatabases that enables you to connect to the databases and access there data.

How to use ODBCA brief exercise will explain the process.We wish to send greeting cards to all our customers. The customer databases in Tallyalready exist. You want to use the names and addresses that you stored there to print outlabels for the Greeting Cards. For this job, we will use Tally data in MS Word.

Start Tally. It should keep running.Ensure that the words ODBC Server is visible in the Gateway of Tally screen

1. Start MSWord→ Select Tools→ Select mail Merge2. Main Document→ Create→ Mailing Labels3. Now press the Data Source button4. Get Data→ Create Data Source5. Click on Ms Query (At the bottom of the dialog box beside File Name)

6. Select Tally ODBC. (you could use a saved query by clicking the Tab Queries. Dothat after you have saved this query that we are creating)

7. Select Ledger and move by click>button to the right the following fields:$Name, $Parent, $Address (move all the other address fields as well.

Then in the next Query Wizard Screen Filter data to limit all ledger accounts belong tothe Group that contains the name ‘Customer’. (In our Sundry Debtors Group we havecreated sub-groups called Trade Customers below which we have different CustomerGroups as well) We want to print labels for customers only.

You can save the Query for future use.Then the process of Mail Merge is intuitive and is the domain of MS-Word. You can setup the main document and bring in the Create Labels dialog box,Insert Merge fields from Tally. The labels will be created.

Exercise1. Create a Company with your name.2. Export all the Data of Raj Computers.3. Import the Data in your new company.

PrintingSession -11

Printing reportsReports and documents generated through Tally’s extensive display capabilities can alsobe printed. Printing is possible in two ways:Using the Print ButtonYou can choose to print directly from the screen currently displayed by selecting thebutton PRING (top-most button on the right-hand side of the screen). This brings up thePrint Configuration screen for the report and new button options on the right-hand side ofthe screen.Multiple PrintingPrincipally geared towards printing the Primary Books of Accounts, like the Cash andBank Books, Accounts Ledgers, Sales and Purchase Registers etc, without needing toselect the accounts one at a time and pressing Alt+P. the facilities provide for printingOne Account at a time, all Accounts in a selected Groups. Before printing, the date rangeand other selections may also be set up.The currentmechanism of printingused by Tally, willrequire that for largecompany accounts,you choose to printeach large companyaccounts, You chooseto print each ledgeraccount on separate pages, - otherwise the memory requirements of the system become solarge as to bring most systems to their knees.Common printing options affect the printing of current selected reports. They are changedby selecting the appropriate button on the right-hand side of the screen:

With Preview:To view the report on screen before

printing.Titling:To change the title of the report.Page Nos:

To specify the starting page number andpage number range.

Pre-Printed/ Plain Paper:Toggle to make the selection.Print Format:A pop-up list displaying the printing formats available in Tally. The formatsprovided are, Dot-Matrix Format, Neat Format and Quick (Draft) Format.

With Colour:This option is only relevant if you have a colour printer.

Copies:To specify the number of copies to be printed.Printer:To change the printer settings. This also displays the default paper size that youhave set for the printer.

Print FormatPrint Format is a button that appears on the Print screen (after pressing Alt+P or clickingon the print button). Click on the Print Format button, Tally displays a list of PrintFormats as follows:Neat Mode and Quick/Draft mode print formats are compatible with most of the printerdrivers installed on the Windows opening system. Dot Matrix Format in Tally is a specialprint format that allows you to print Tally reports in text format using the Blazing speedof Dot Matrix printers.Select Dot Matrix Format, the screen appears as:By default, the Epson printer drivers have been defined. You may install Epson Printerdrivers in Windows for any Dot Matrix printer and use this format for faster reportprinting!Note: Any Dot Matrix printer may be used, but ONLY the Epson printer drivers (LQ and FX series) shouldbe used for Dot Matrix Format printing of Tally.Draft Mode Printing (Quick Format)Almost every report can also be printed in Draft Mode (except for Cheques!). The defaultbehavior of Tally is to print in Neat Format and you may alter this by Pressing Alt+F jutbefore printing all subsequent reports will be printed in Quck Format, until Alt + F ispressed agin at the Printing Screen. (The button equivalent for this is marked QuickFormat),

Multi-Account PrintingThis option enables the printing of the primary Books of Accounts, like the Cash andBank books, Account Ledgers, Sales and Purchase Registers etc., without having to selectthe accounts one at a time and printing them.Go to Gateway of Tally→ Multi Account Printing.Choose between the options account Books, Inventory Books, Day book and MultiVoucher Printing.You can select the date and other selections before printingDrill-down to Accounts Books, Outstanding statements and Inventory Books and selectthe appropriate reports to print. Change the common printing options by selecting theappropriate buttons on the right side of the screen.

Printing All AccountsGateway of Tally→ Multi-Account Printing→ Outstanding Statements→ Ledger→ AllAccounts

When printing the Ledger Outstanding screen, if show contact details is set to Yes, andStart Fresh Page for each Account is set to No, the Contact Person and the Tel. No. fieldsare displayed below each ledger account in the same page.

Printing ConfigurationGeneralGateway of Tally→ F12 Configuration→ printingThis configuration is applicable for all print reports.

Print Date & Time of ReportThis option enables printing of system date and time on eachreport. These are printed on the top right corner of the report asa control mechanism. It should not be confused with the daterange of the reportNote: Vouchers and Invoices are not reports.Stop printing Vertical Lines/BordersSet this to Yes to avoid printing of vertical lines and borders indot-matrix printer. This helps in faster printing.Standard Space on Top of pages (Inches)This field is set to 0.5 inch by default. However, you canchange it as per your requirement.

Settings for ‘Quick Format’Tally prints in two formats Neat and Quick. Neat printing takes advantage of fontsOf the printer and is the default. It also compresses long data like long names andamounts and auto-fits them according to space.Quick printing is suitable for Dot Matrix Printers where speed is an issue. Hence, quickprinting does not print fancy fonts. The auto-fit facility is, thus, is not possible quickprinting.Therefore, it will truncate data longer than the allotted space. To prevent this, set the twofields under settings for ‘Quick Format’ to Yes.Purchase Voucher/Invoice and Purchase Order

Purchase voucher/Invoice, Receipt Note and Purchase Order are printed to maintaincontinuity in voucher numbers and to provide a document to record a transaction. Toconfigure, select Purchase Transactions under Printing.

Purchase Voucher/InvoiceReceipt Notes

Receipt Notes are entered in the same format as Delivery Notes, and if PurchaseOrders are enabled, the details of the order would automatically get filled-up.Further, Purchase Invoices would also auto-fill with the receipt Note or PurchaseOrder details as relevant.Purchase OrdersPurchase orders are required to be printed and sent to suppliers.

Payment/Receipt/Journal Vouchers, Credit Note/ Debit NoteConfigure the dimensions and details as per your requirements to print

Purchase Orders are required to be printed and sent to suppliers.The above options pertain to payment Vouchers. The Options for Receipt Vouchers,Journal/Contra, Debit/Credit Note are similar.Sales invoice, Delivery Note and Sales Order/QuotationPrinting configuration for all sales vouchers like Sales Invoices, Delivery notes and Salesorders/quotation are accessible through sales Transactions under printing menu, Eachtransaction type can separately configured and selected from the sub-menu.

Details of the above configuration options have been discussed in Invoice Entry section.

Delivery NoteDelivery Note appears similar to invoices. Fields like Rate and Amount may be requiredby some companies to be printed out on Delivery Notes. Select the options as relevant toyour company. Sales Order/Quotation.

Sales Orders, if marked Optional, during voucher entry, are printed as quotations.

Reminder LetterThe reminder Letters feature in Tally can be used to remind any customer or supplier oftheir overdue bills.Space to leave on top (default 0.5 inch) and Space to leave on left (default 0.5 inch): thesefields are set to 0.5 inch by default. However, you can change it as per your requirement.)Information in First Paragraph and Information is second Paragraph: the informationprovided in these two fields can be used as such, modified or extended.

Confirmation StatementConfirmation Statement are not the same as Reminder Letters. They serve to confirm theaccount balances with customers, suppliers, lenders and borrowers. This is used mostly atthe end of a period but can be produced at anytime.Space to leave on top (default 0.5 inch): this field is set to 0.5 inch by default. However,you can change it as per your requirement.Titling for ‘Subject’ in Letter: the default text is Confirmation of Accounts. You havethe option of changing it as per your requirement.Information in first Paragraph and information Second Paragraph: the informationprovided in these two fields can be used as such as such or modified or extended.Sing-off used for the Letter: the default text can be changed in this field also.

TaxationSession -12

Service TaxFeatures of Service Tax in Tally ies 8.1Service tax integrated in Tally 7.2ies takes care of your service tax transaction. Iteliminates error-prone information, incorrect remittance, penalties, compliance, interest,Compliance issues, etc. service Tax in Tally ies7.2 needs a one time configuration forservice tax to be activated.

Tally tracks bill-wise(bill by-bill) detail and automatically calculatesservice tax payable and input credit with the flexibility to makeadjustment later.

Service tax is part of a regular transaction. Information on service tax ismaintained and produced category-wise, which is mandatory-in servicetax returns.

Adjust input credit towards service tax payable. Accounts for abatement and expenses. Provision for exemption notification details. Built-in assessable value feature on which service tax is calculated. Transfer earlier pending service tax payable and available service tax input

credit in to Tally Reports are generated as per government suggested format. Print and file

reports: TR6 Challans. Management information services (MIS) reports: service tax payable

report.

Entering Service Tax DetailsGateway of tally→F11→ Statutory & Taxation

Company Service Tax DetailsThe Company Service Tax Detail screen is where you will enter the service tax details,The name of the company is displayed at the top followed by different fields.Service Tax Registration No.Enter the registration number allotted to you by the Service Tax Department.Date of RegistrationEnter the code given to your company by the Service Tax Department.Type of OrganizationIn this field select the type of your organization from the List of Organizations menu.Major Service Category NameHere you will find options for different categories that corner under the service tax net.You might be providing two or more services in a company. In such a situation, select theservice category that is the mainstay or forms the major part of your business.Select the relevant option from the List of Service Categories that applies to yourcompany.Credit Adjustment (%)By default this field is set to 20. Enter the percentage of credit adjustment that uou wouldlike to avail.Division

Code- The code of the division in which your company falls.Name- Enter name of the division under which your company falls.

RangeCode- Enter the code of the range of your companyName- Enter the name of the Range under which your Company Falls.

CommissionerateCode- This is the code of the Comrnissionerate of Service Tax under whose range

the address of your registered premise is located.Name- This is the name of the Comrnissionerate of Service Tax under whose

range the address of your registered premise falls.

Focal Bank DetailsFocal Bank Code The Commissionerate of Tax allots a code to banks

nominated for payment of service tax in a particular area.This code is available with commissioner ate of ServiceTax.

Focal Bank Name This is the name of the bank nominated by thecommissionerate of Service tax to receive service taxpayments in a particular area. This information is availablewith the Commissioner ate of Service Tax.

Focal Bank Address Enter the address of the branch of the focal bank.Press ‘Enter’, once you have entered the service tax details. This will take you tothe company Operations Alteration screen. Accept to save the change.

Creating MastersCreating Party LedgersYou can activate service tax in the party ledgers at the moment of creation ofledgers or in alteration mode of ledgers. Set yes in the service tax applicable field.For parties for which service tax is applicable you get another screen to specifythe exemption details. If Party is exempted from service tax by any governmentnotification set Yes at Is exempted field and enter notification number atNotification details.If party is not exempted from service tax set No at Is Exempted Field.Specify service tax registration particulars of the party eg. Registration No.Registration Date)

Exemption NotificationSet Yes in the is Service Tax Applicable? Field. This will display the exemptionNotification Number screen.

Creating Service Tax LedgersYou will have to create a service tax ledger to calculate service tax. The rate of serviceTax and rate of cess are predefined values in Tally and this can be changed in atransaction.Gateway of Tally→ Accounts Info→ Ledger→ Create.In this screen enter the service tax ledger name in the Name field. In the Under field,select the Duties & Taxes option from the List of Groups.

In the Type of Duty/Tax field select Service Tax from Type of Duty/Tax. Enter otherdetails and press ‘Y’ or ‘Enter’ to accept.Service Tax CategoryTo get the service tax category selectGateway of Tally→ Display→ Statutory Masters→ Service CategorySelect the category you want to display. It will show you code, accounting code, categorycode, applicability date of service tax in this category with service tax rate and cess rate.

Creating Sales Ledger for ServicesIf you are selling a service then create a ledger for the service provided. These ledgers canbe in Sales accounts or Direct Incomes Groups. Enter the name of the service you providein the Name field. In the under field; select sales Accounts/Direct Incomes from the Listof Groups menu. Set the Is service Tax Applicable? Field to yes. Select the category ofservice form the List of Service Categories.

Service Tax Display in Statutory MastersYou can view the values in each service category in tally. These are predefined valuesand any changes can be updated from the Tally website.Gateway of Tally→ Display→ Statutory Info→ Service Categories

Select the service category which you want to view. This Service Category screen has aname field showing the category. This is followed by the Code, Accounting Code andCategory fields.The Applicable From column displays the period for which the Abatement (%), ServiceTax Rate(%), and Cess Rate (%) are applicable.

Voucher CreationSales Voucher EntryIf you have already computed service tax you may enter sales voucher in voucher modeor if you want to get service Tax Computed use invoice mode to enter sales voucher.

In voucher mode: Enter the sales entry as following:Dr: Party A/cCr: Income A/cCr: Service Tax (Ledger Created Under Duties and Taxes Group)

In invoice mode: select the party ledger then select the service income at sales ledgerfield. At table area, select service income ledger and enter the service charge amount.Next select the service tax ledger. On selection of service tax ledger account you get a subscreen to enter the details to compute service tax. Enter the service tax rate and cess rate.The total service tax is posted against the bill reference number.

Creating Sales VouchersGateway of Tally→ Accounting vouchers (transactions/Vouchers). This will open theAccounting Voucher creation Screen. Select F8: Sales to create a sales voucher.Select the service tax ledger to be credited from the List of Ledger Accounts. This willdisplay the Service Tax Computations Screen. This screen gives details of the defaultvalues for service tax ledger to be credited from the List of Ledger Accounts. This willdisplay the service Tax Computations screen. This screen gives details of the defaultvalues for service tax in the ledger. You can alter these values here. There is an abatementfield and Expenses field to arrive at the Assessable Value. The Service Tax and Cess iscalculated and displayed. Enter a new reference in the New Ref field.

The Bill-wise details screen is displayed. Select a new reference from the Method of Adj.Enter the due date or credit period, if any. Enter the service Tax Ledger from the List ofService Tax Ledgers.Use the Narration field to enter other information field to enter other information. Acceptto save the entries.Crediting Receipts and Payments VoucherOpen Tally, Gateway of Tally Accounting Vouchers (Transactions/Voucher). This willopen the Accounting Voucher Creating screen. Select F6: Receipt to create a receiptvoucher.In the Particulars table, select the company to be credited for the paymentreceived from the options in the List of Ledger Accounts. Enter the amount received inthe credit field

.

Select the method of adjustment from the Method of Adj Field and the List of PendingBills From the bill-wise details screen.

Now select the bank/cash ledger where the payment is to be debited from the list ofLedger Accounts menu. Enter the amount received in the Debit Field. Enter details ofthe receipt in the Narration field.

Deposit of Service TaxTo deposit the service tax payable as per service tax payable reports, create a payment

voucher, select service tax account. The bill allocation screen appears select angst ref toget the list of bills for which tax is payable. Tax amount payable appears as default.

Input Service TaxSome organizations buy services paying service tax. If the service is bought to render theservice sold, then service tax paid on service purchased (Called Input Credit) may beadjusted from the service tax payable on services rendered.

At company Service Tax details at credit adjustment rate, enter the rate of service taxcredit. Enter the credit adjustment %. Normally it is 20% (where the expenses relating totax credit are not solely attributed to service income).The purchase service tax may be adjusted to the extent of credit adjustment %. Say if therate is 20% then only 20% of the input credit may be adjusted.

Service Tax ReportsGateway of Tally→ Display→ Statutory Reports→ Service TaxReports.There are four types of reports in the menu:

TR6 ChallanService Credit FormInput credit FormST3 ReportTR6 ChallanThis report is to select a range of TR6 payment voucher to beprinted in one challan to file to the government.Gateway of Tally→ Display→ Statutory Reports→ Service tax Reports→ TR6Challan

Service Tax PayableGateway of Tally→ Display→ Statutory Reports→ Service tax Reports→Service Tax PayablesThis will display the service Tax Payable screen.Select the period for the report using the F2: Period option, This will display theservice tax payable for the selected period.

Input Credit FormInput Credit Form report displays details of Service Tax input credit availablewith the company for a specified date.This can be used as a supporting form while filing the half-yearly returns using theST3 report.Select the period for the report using the report using the F2: Period option. Thereport displays input credit available up to the period of the specified date.

ST3 ReportThe ST3 Report is a statutory report. This report displays the ST3 Form ingovernment prescribed format that is used to file half yearly service tax returns tothe commissionerate of Service tax.Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST3ReportUse the Alt+P key or click on Print Option to print your report.This will display the form ST-3 screen.

ST3A ReportThe ST 3A report is a statutory report. This report displays the ST 3A Form in theprescribed format and is filed quarterly or half yearly as the case may be. Thisgives details of the difference between service Tax deposited to the governmentand the Service Tax Liable to be paid for each month in a memorandum in FormST 3A, which will be accounted quarterly or half yearly as the case may be.

Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST 3AReportEnter the dates of ST 3A period in the From and to fields and accept the screen.

Dealer ExciseDealer Excise in TallyThe dealer excise functionality in Tally supports the following features, marking it easyfor computation:

1. Easy to use2. Fast and error free voucher entry3. Complete tracking of Excise duty on each transaction4. Printing of Excise invoice with the supplier & Manufacturer details as User

configurable option.5. Reports are generated as per Central Excise Statutory requirements6. Generation of Quarterly Return in Form-2

Enabling Excise in TallyYou can enable Dealer- Excise in Tally, in the F11: Features screen.Gateway of Tally→ F11: Features→ Statutory & TaxationThe company Excise Details sub-form appears as shown below.

ECC/PAN Based Regn/Code No.The 15-Digit PAN based registration number is an alphanumeric numbermentioned in the registration Certificate. The first part would be the 10-character(alphanumeric) Permanent Account Number [PAN] issued by the income TaxAuthorities to whom the registration number is allotted (includes a legal person).

The second part comprises a fixed 2- character alpha-code indicating the categoryof the registration. The third part is a 3-charecternumeric code.CommissionerateThe Commissionerate of central Excise is the division under which yourregistered premise is located.Range

Code: Enter the code of the range under which your company is registered.Name: Enter the name of the range under which your company isregistered. Address: Enter the address of the range under which yourcompany is registered.

DivisionCode: Enter the code of the division under which your company isregistered . Name: Enter the Name of the division under which yourcompany is registered. Address: Enter the Address of the division underwhich your company is registered.

Creating A Party LedgerGateway of Tally→ Account Info→ Ledgers→ CreateThe ledger creation screen appears as shown below:

1. Enter the name king in the Name field.2. Select the group sundry Creditors in the Under field.

3. In the Mailing Details section enter the supplier contact details, Income Tax andSales Tax numbers.

4. Set Excise Details to Yes to display the Excise Details sub form.5. Enter the Excise Registration Number of the supplier.6. Enter the Range under which the supplier’s company is registered.7. Enter the Division under which the premise of the Supplier’s Company registered.8. Enter the division under which the premise of the Supplier’s company is

registered.9. Select the default Nature of purchase form the nature of purchase list. The table

lists the type of Purchase, which can be changed during transactions.Note: The Excise details sub-screen appears for ledgers created under Creditors and sundry Debtorsonly.

Creating Customer LedgerCreating customer ledger is similar to that of creating the ledger but it should becreated under sundry debtors.

Creating Stock ItemGateway of Tally→ Inventory info→ Stock item→ CreateThe Stock Item Creation screen appears as shown below.1. Enter the name of the

Stock Item in theName field.

2. In the Under field,select the Groupunder which thestock Item is createdfrom the List ofGroup list.

3. Select the unit forthe Stock Item from the Units list.

4. Set Excise Details to Yes to display the duty Details sub form as shown below.

Creating Voucher TypeThe excise Voucher Type for Purchase, Sales, Credit Note and Debit Note has to becreated before creating the invoices.Creating Purchase Voucher TypeGateway of Tally→ Accounts Info→ Voucher type→ Create.

Name: Enter the name of the Voucher type.Type of Voucher: Select the type of voucher as purchase from the list of vouchertypes. Abbreviation: You may abbreviate the Voucher type as per your requirement.Method of Voucher Numbering: Select Automatic for the method of Vouchernumbering. Use Advanced Configuration: Set it to Yes to specify the numberingmethod, if required.Use for Dealer Excise: Set this field to Yes to enter Excise Purchase to captureAssessable Value and Excise Duty breakup.Accept the screen to save after entering all the details.Note: The use for dealer Excise option will appear in Purchase/Debit Note and Sales/Credit Note onlyand if the dealer. Excise is enabled in the F11 Features F3 –Statutory & Taxation.

Creating Sales Voucher TypeCreating Sales Voucher Type is similar to that of Creating a Purchase Voucher Type butit should be created under the Sales Type of Voucher.Creating a Debit Note Voucher TypeA Debit note Voucher type has to be created if a Debit Note has to be passed. Thevoucher type should be created under debit Note type of voucher.Creating a Credit Note Voucher TypeA Credit note voucher type has to be created if a Credit Note has to be passed. TheVoucher Type should be created under Debit Note type of Voucher.Creating a Purchase InvoiceA Voucher Types created should be used for all the purchase and sales entries of Excisetransactions. The Excise feature supports Multi Currency and Voucher Class.Gateway of Tally→ Accounting Vouchers→ Select F9: Purchase

1. Select the Excise Purchase Voucher Type from the list of Voucher types in theInvoice mode.

2. Enter a reference in the Ref field.3. Select the appropriate Party’s Account Name (Manufacturer/Importer Ledger,

First Stage Dealer Ledger or Second Stage Ledger) from the list displayed4. The Party Details sub-form will appear as shown below.5. Supplier’s Details

This section will include the consignee and supplier details like the contact details,Sales Tax number and the Excise registration details. The details will appearautomatically if they are provided during the Supplier Ledger Creation.

Note: The consignee and the Supplier details appear if Allow separate Buyer and Consignee in F12Configuration is enabled

6. Manufacturer/Importer DetailsIf your supplier I not a Manufacturer, enter the name, address, Excise registrationdetails Invoice numbers and date of Invoice, of the Manufacturer/Importer. Afterentering the above details, the Accounting Voucher Creation screen re appears.

7. Select the Nature of Purchase from the list of Nature of Purchase. This fielddefines the Supplier’s role in selling the product to us.

Note: By default the Nature of Purchase selected in the Party Ledger Appears in the above field which canbe changed.

8. Select the Purchase Ledger.9. Select the Name of the Item and the Item Allocations Screen appears.10. Enter the corresponding details in the fields to accept the Item Allocation Screen.11. The Excise Details sub-screen for the stock item will appear.12. The Supplier Invoice No. is automatically captured from the Ref field in the

VoucherNote: the Supplier Invoice Date and the Assessable Value is automatically captured however, it I aneditable field.

13. The Supplier Invoice Date and the Assessable Value is automatically Capturedhowever, it is an editable field.

14. Any additional cost apart from basic value falling under the purview of Excise canalso be included in the assessable Value field.

15. The Type of Duty and the Rate of Duty defaults, as specified in the Item MastersCreation screen.

Note: The entries for the Excise Duty have to be passed in Invoice mode only.16. Accept the Excise Details sub screen for the Voucher Entry screen to reappear.

Excise ReportTo view Excise ReportsGateway of Tally→ Display menu→ Statutory Reports→ Dealer Excise Reports.

The Dealer Excise Reports menu consists of two reports

Excise Stock RegisterEvery Registered Dealer has to maintain Stock Register recording the daily receipt andissue of Excisable goods ready for inspection by the officers of the department.The Excise Stock Register in Tally gives the purchase and sales information. It has twosections, which are, the Receipt section for Purchases and Issues section for theSales/Debit Note/Credit Note details.Gateway of Tally→ Display→ Statutory Report→ Dealer Excise Reports→ ExciseStock Register

Introduction to VATVAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It isthe tax paid by the producers, manufactures, retailers or any other dealer who add value tothe goods and that is ultimately passed on to the consumer. VAT has been introduced inIndia to ensure a fair and uniform system of taxation. It is an efficient, transparent,revenue-neutral, globally acceptable and easy to administer taxation system. It benefitsthe common man (consumer), businessman and the Government.Enabling VAT in TallyGateway of Tally→ F11 Company Features→ Statutory and Taxation

VAT Details- Select the State Name- Set Type of Dealer- Enter the Regular VAT applicable from date

Composite DealersDealer with annual gross turnover not exceeding a certain threshold (threshold-decided bythe respective State Government) can opt for a composition scheme whereby they willpay tax as small percentage of their gross turnover. However, retailers option for thiscomposition scheme will not be entitled to input credit.VAT Rates

Input VAT @ 4%Purchase ExemptedInput VAT @ 1%Input VAT @ 12.5%

Output VAT @ 4%Sales ExemptedOutput VAT @1%Output VAT @12.5%

Ledger MastersThe VAT Classification will be displayed as a drop down list in the Ledger Masters. Tallygives the flexibility to the user, to either have the classification selected in the LedgerMaster tagged to all transactions, or, select different classifications each time duringvoucher entries. This is explained in detail in the Vouchers and Transactions section.The ledgers that are affected by VAT are:Purchase LedgerSales LedgerDuties and Taxes LedgerDirect Expenses/IncomeCreate Purchase LedgerGateway of Tally→ Accounts Info→ Ledger→ Create/Alter.

VAT Classification – Purchase-Exempt

Create Party LedgerCreate Sales Ledger

Gateway of Tally→ Accounts Info→ Ledger→ Create/Alter.

Duties and Taxes LedgerThe ledger fir Input VAT is shown below:

The ledger for Output VAT is shown below:

Voucher and TransactionsThe entire Data entry and Reporting architecture is based upon VAT Classificationsselected during Voucher Entry.

VAT ReportGateway of Tally→ Display→ Statutory Report→ VAT Reports

Gateway of Tally→ Display→ Statutory Report→ VAT Reports→ VAT Forms

Tax Collected at Source (TCS)TCS IntroductionTCS is Tax Collected at source by the seller (collector) from the buyer/ lessee (collectee/payee). The goods are as specified under section 206C of the Income Tax Act, 1961.If the purchase value of goods is X, the amount payable by the by the buyer is X+Y,where Y is the value of tax at source. The seller deposits, lesser or licensor, is responsiblefor the collection of tax from the buyer, lessee or licensee. The tax is collected for sale forsale of goods, on transactions, receipt of amount from the buyer in cash or issue ofcheque, draft or any other mode, whichever is earlier.Enabling TCS in Tally

To enabling TCS in Tally:1. Gateway of Tally2. Press F11 or click F11: features Statutory & Taxation to display the company

Operations Alteration screen.3. Enter yes in Enable TCS and Set/Alter TCS details.4. Enter the Company TCS Collector Details.

5. Enter the Tax Assessment Number. The Tax Assessment Number (TAN) is a 10-digit alphanumeric number, issued by the income Tax Department (ITD) to thecollectors.

6. Enter the Income Tax Circle/Ward (TCS). This is issued by the Income TaxDepartment

7. Select the collector Type from the list of company Type.8. Enter the name of person responsible for filling the TCS returns.9. Enter the designation of the person responsible for filing of TCS returns.10. Press enter and Accept to save.

To create Party Ledgers for Sundry Debtors/ Sundry Creditors1. Gateway of tally→ Accounts Info→ Ledger→ Create2. In the ledger creation screen, enter the name of the buyer company in the Name

field3. In the Under field, select Sundry Debtors/Sundry Creditors option from the List of

Groups4. If required, set Maintain balance billby-bill? To yes. Enter details in the default

Credit Period, if applicable. By default, the Inventory Values are affected? Field isset to No

5. Set Yes for Is TCS Applicable?6. Select from the List of Collectee Type Types for Buyer/Lessee

Creating Sales Ledger for TCS1. Gateway of Tally→ Accounts

Info→ Ledger→ Create2. Enter a name for the sales account

ledger in Name field3. In the Under field, select Sales

Accounts from the List of Groups4. Set the Inventory Values are

affected? to Yes if you aremaintaining inventory

5. Accept to save

Creating TCS Ledger under Duties and TaxesTo create a TCS Ledger under Duties and Taxes for TCS on Sales

1. Gateway of Tally→ Accounts Info→ Ledgers→ Create2. In the Ledger Creation screen, enter the name of the TCS ledger in the Name field3. In the Under field, select the Duties & Tax from List of Groups4. Select TCS from Types of Duty/Tax in the Type of Duty/Tax field

Creating Sales Vouchers for TCSTo create a TCS Ledger under Duties and Taxes for TCS on Sales1. Gateway of Tally→ Accounting Vouchers2. In the Accounting Voucher Creation screen, select F8: Sales to create a sales

voucher3. Select As Invoice mode4. Enter the date and reference5. Select the party to be credited from the list of Ledger Accounts and enter

Party’s A/c Name6. In the Party Details screen, check/modify details7. Select Sales Ledger from the List of Ledger Accounts8. Select the item from the List of Item in Name of Item9. Enter the Quantity and the Rate to gate the amount in the amount field10. Select the TCS ledger (Under Duties & Taxes) for sales11. By default, the gross amount is displayed in TCS details in TCS Computation

screen. The gross amount can be changed if required.12. Income Tax percentage can be changed if Allow Alteration of TCS Rate in

Sales Invoice Configuration is set to yes.13. Enter new reference (New Ref) and Due Date, or Credit Days (By default, 7th of

following month).

Select any other expenses ledger, if applicable, from the list of Ledger Accounts14. Enter narration, if required, and accept to save.

Payment of TCS in TallyYou can create entries for payment of TCS in a normal payment voucher and manuallypay TCS as shown here or you can create a TCS Payment voucher using the TCS Helperbutton from the button bar. This is an automatic feature which allows payment of TCS forall entries from a TCS ledger.

To create a TCS payment voucher manually1. Gateway of Tally→ Accounting Vouchers2. In the Accounting Voucher Creation screen select F5: Payment3. Enter the date4. Select and debit the TCS Ledger in Particulars from the List of Ledger

Accounts and enter the amount5. In the Tax Details screen, select from List of TCS payable and enter the

amount6. Select and credit the bank authorized to receive TCS in Particulars from the

List of Ledger accounts and enter the amount7. Enter Narration, if required,8. Print the TCS Challan, if required,

9. Accept to save

Printing TCS ChallanPrint TCS Challans for a TCS payment voucher created manually or created usisng theTCS Helper button.

To Print a TCS Challan1. Press [Alt + P] or click on Print from the button bar in the Payment voucher

screen to view the voucher Printing screen

TCS Challanform

TCS ReportsTCS reports in Tally are extensive. Statutory reports are integrated, making it convenientto print and file reports in government prescribed formats. Additionally, a wide of rangereports such as reconciliation reports and display reports are available. These reportsprovideInformation at a glance and help in managing TCS issues with ease.1.Gateway of Tally→ Display→ Statutory Reports→ TCS Reports2. TCS Reports menu displays the Following options.

Fringe Benefit TaxEnable FBT in TallyF11: FeaturesYou can enable Fringe Benefit Tax (FBT) byusing the F11: Features screen.

1. Gateway of Tally→ F11: Features→Statutory & Taxation

2. Set the option Enable Fringe Benefit Tax(FBT) to Yes

3. Set Set/After FBT Details to Yes. TheCompany FBT Assesse Details Sub formappears as shoen.

Income – Tax/PAN NumberIf the income Tax/PAN Number is not entered in the Company Master, the same can beentered F11: Features under Company FBT Assessee Details.If the Income Tax/PAN Number is entered in the Company Master, it cannot be edited inF11: Features under Company FBT Assessee details.

Assessee TypeSet the S\Assessee Type to which your company belongs to. This information is used tocalculate the Income Tax, Surcharge and Education Cess while computing FBT.Note:The option is Surcharge Applicable? Is applicable only if your Assessee Type isAssociation of Persons/ Body of Individuals. On setting this field to Yes in the CompanyFBT Assessee Details, the surcharge is calculated in FBT Computation Report.For the Assessee Type Local Authority, the option is Surcharge Applicable? In notapplicable.Assessee CategorySelect the appropriate assessee Category from the list.

Create party ledgerGateway of Tally→ Accounts Info→ Ledger→ Create

Create expense Ledger

Create Duties & Taxes Ledger

Vouchers and TransactionsExpenses due: F7 Journal voucher

Payment Voucher

FBT Payment

FBT ReportGateway of Tally→ Display→ Statutory Report→ FBT Report

Tax Deducted at Source (TDS)Tax Deducted at Source (TDS) in an indirect method of collecting income tax. Suchcollection of tax has an effect at the source when income arises or accrues. The buyer(deductor) deducts the tax from the payment made to the seller (deductee) and remits thetax to the Income Tax Department within the stipulated time.The buyers (Corporate and Non-Corporate) make payments (such as Salary, Rent, Intereston securities, Dividends, Insurance Commission, Professional fees, Commission onLottery Tickets, etc) to the seller (Services) and deduct the requisite amount from suchpayments towards tax. The buyer files the TDS returns containing details of the seller andthe bank, where the TDS amount is deposited to the Income Tax Department (ITD).

eTDSThe Income Tax Department has prescribed the formats for filing these returnselectronically, which the buyer does in a CD/floppy. The TDS functionality in Tallysupports the following features: Simple and user-friendly. Quick and easy to set up and use. Accounting for tax on partial/ full payment of bills. Flexibility for auto and manual calculation of TDS. Complete tracking of each transaction from deduction to payment. Challan management and printing for prompt and accurate filing of tax. The Auto allocation feature prevents error-prone data entry and helps track the

transactions faster. Form 16A management:

o Can be printed for a transactionso Can be printed for a periodo Can be printed yearly

Allows multi-parly printing Exporting of data in NSDL compliant TDS file format. Electronic format (e-TDS return) with Form 26Q, Form 26, Form 27 and form

27A which will be validated by the utility, provided by the government. Generates Form 16A, TDS Challan, and TDS Computation and TDS Payable

reports.

TDS in Tally 9.0Enabling TDS in TallyYou can enable Tally TDS in F11: Features screen. The F11: Features button is availablein almost all screens of Tally. This screen helps you to activate the TDS feature.Gateway of Tally→ F11: Features→ Statutory & Taxation

1. Set Enable TDS to Yes2. Set/Alter TDS detail to Yes. You will see the advanced company

3. Set Enter TDS Dedicator Details to Yes will display the below dialog window

Tax Assessment NumberEnter the Tax Assessment Number (TAN) in this field. The Tax Assessment Number(TAN) is a ten-digit alphanumeric number, issued by the Income Tax Department (ITD)to the deductors.Income Tax circle/Ward (TDS)Enter the Income Tax Circle/Ward (TDS). Where the Company assessd.Deductor TypeSelect the Deductory Type (Government or Others) depending on whether yourorganization is a Company or a Non Company.Name of person responsibleEnter the name of the authorized person responsible to file the TDS returns of yourcompany.Note: If Tally has a security feature enabled then this field is automatically filled with the user name.

DesignationEnter the designation of the authorized person filing the TDS returns.Creating Tax LedgerThe Tax ledgers have to be created under the group Duties and Taxes. The group ‘Dutiesand Taxes’ is automatically used for calculation of tax. This Ledger holds the entireautomatic calculation for TDS tax deductions at the voucher entry level. It is internallyenabled to calculate the Tax.The option to specify the tax Type is available only for ledgers under the group ‘Dutiesand Taxes’.The Tax ledger master screen can be reached by following the menu path:Gateway of Tally→ Accounts Info→ Ledgers→ Create

NameEnter the name of the Tax ledgerUnderSelect the group as Duties and Taxes from the list. On the selection of group Duties andTaxes, you will get the option to select type of Duty/Tax.Type of Duty/TaxSelect TDS tax type from the listNature of PaymentSelect the appropriate TDS Nature of Payment as statutorily applicable, given/ desired bythe Govt. e.g. Fees for Professional Or Technical Services. By default, Tally provides youwith a List of TDS Nature of Payment. You need to select the appropriate TDS Nature orPayment from the list.Note: Nature of Payment – You will find different categories that come under the Tax Deduction. Select therelevant TDS Nature of Payment from the List of TDS Nature of Payment that applies to your company.

Ignore TDS Exemption LimitIf the total transaction limit exceeds the actual limit you need to set the IgnoreTDS Exemption Limit field to Yes then the tax is not calculated up to exemption.Accept the Ledger creation screen.

Creating Party LedgerYou need to create ledger for party/suppliers under the group Sundry Creditors for whomTDS has to be calculated automatically by the system.The options is TDS Applicable and the Deductee Type are available only for ledgersunder the group Sundry Creditors.You can either Create/Alter a ledger to specify your TDS account details.

Gateway of Tally→ Accounts Info→ Ledgers→ Create

NameEnter the name of the Party/Supplier, who provides to you.UnderSelect the group as Sundry Creditors from the listIs TDS ApplicableSet Is TDS Applicable to Yes. This will open the Ledger Deductee Details sub-form.Deductee TypeSelect the Deductee Type from the listIgnore Surcharge Exemption LimitIf Ignore Surcharge Exemption Limit is set to Yes then the exemption Limits will beignored.Maintain balances bill-by-billBy default this field is set to Yes for Sundry Creditors.Mailing & Related DetailsEnter the Mailing and Related Details like Name, Address, Pin Code and select the Statefrom the list, and enter the Income Tax and Sales Tax Number.Similarly, you can create Ledgers that provide services to your company under SundryCreditors.Note: If the party is a Non Resident then PIN Code, State and the Sales Tax Number fields are notapplicable

Voucher EntryBooking for TDS ExpensesThis voucher enables you to books the expenses directly and helps you to deduct the TDSand pay the amount to the party for their services.Select F7: Journal button to the right or press F7 to create a Journal Voucher.Gateway of Tally→ Accounting Vouchers→ Journal VoucherOrPress F7 key at the Voucher Entry screen to make a Journal VoucherThis will open the Journal voucher creation screen.

1. Select Rent (under Indirect Expense) from the list in the Particulars column andenter the Amount in the Debit column.

2. Select the Party from the list (Mohan) and the Amount appears automatically inthe Credit

3. Press Enter to view the Bill wise details sub form as displayed below:a. Enter the Nameb. Select the TDS Ledger from the list to the right.c. The Amount is automatically picked up by the system.

4. Accept the bill wise details sub form5. Accept the screen to save the Journal voucher.

Note: Booking the TDS Expense can be done using the Purchase voucher available in default Tally.

TDS DeductionTDS Deduction button is available in Journal Voucher screen. You can pass a Journalvoucher using this button to record all the Tax ledger transactions for a particular partywho provides services. The list of ledger accounts displays only those ledger accountsenabled for the party selected.Gateway of Tally→ Accounting Vouchers→ F7: JournalButton from the button bar on the right- side of your screen the F7 key.

1. Selection TDS Deduction Button or Press Alt+S. you will get a list of TDSLedgers for the party selected

2. Select the TDS Party Ledger from the list3. Select the TDS Ledger from the list (TDS on Technical Services). The system

calculates the Net TDS to deduct amount.4. Select the TDS Applicable Bills from the list.5. Accepting the TDS details sub form will post the Net TDS to Deduct amount in

the Debit column of the Journal Voucher screen. Press the Enter key to credit theTax Ledger (TDS on Rent). You may enter the New Reference Number foridentification and accept the screen to save the Journal Voucher.

Payment to a Party LedgerThe Entry for the Payment to a party ledger is the same as in default Tally.

1. Select the Party from the list.2. Enter the Amount.

3. On entering the amount You will get the Bill wise details sub form. Select theAgst Ref from the list of pending bills. Accept the Bill wise Details sub form.

4. Accepting the Bill wise sub form will display the screen shown below5. Select the Bank or Cash from the list.6. Accept the Payment voucher to save the entry.

Preparing TDS ChallanGateway of Tally→ Accounting Vouchers→ Payment Voucher Or

1. Press F5 (payment Voucher) at the Voucher entry screen to make a paymentVoucher

2. Select Bank Account from the list (TDS Helper functionality in Tally gives youtremendous flexibility to generate the payment vouchers, for any period and toany deductee).

3. After entering all the fields in TDS filters sub form. Select the Account (Bank)from the list.

4. Accept the Payment voucher screen to save the entry.

TDS ComputationThe TDS Outstanding option in Tally TDS provides the users the facility to view all theTDS Outstanding that is pending for payment.

Gateway of Tally→ Display→ Statement of Accounts→ TDS OutstandingParticular column provides you with a list of Party and the TDS ledger namesAmount Paid/Payable Till Date column gives the total amount that has to be paid to theparty.Tax Rate Displays the rate specified by the Income Tax department for the servicesprovided by the party.Tax gives the total income tax amount calculated at the rate specified in the previouscolumnSurcharge Rate displays the rate of additional levy on Income TaxSurcharge provides the total surcharge value calculated at the rate specified in theprevious columnAddl. Surcharge (Cess) Rate displays the rate of additional levy on Income Tax andSurchargeAddl Surcharge gives you the additional surcharge value at the rate specifiedTotal TDS Amount display the total TDS amountLess: TDS Deducted Till DateNet TDS to Deduct provides the TDS amount that are not paid

Click on the Print button or use ALT+P to print the TDS Computation report. Thisbrings up the Printing TDS Computation configuration sub-form by which the user cancustomize the appearance of the Ledger report.

TDS PayablesTDS Payable report gives you information on the status of TDS payable (Pending)amounts for a particular TDS Ledger account.Gateway of Tally→ Display→ Statements of Accounts→ TDS Outstanding→ TDSPayables

The TDS Payable report provides the Outstanding for a Tax ledger accounts, e.g. TDS onrent if you want to know the status a particular TDS Ledger, press Enter on the Ref. No.Note: If you wish to know more details on the voucher drill down further by pressing Enter.

1. Date: Date of creation as entered in the Payment/ Journal/Purchase Voucher2. RefNo: The payment Reference number3. TDS ledger Name: TDS ledgers created under Duties and Taxes4. Pending Amount: The Pending amount that needs to paid by your company to

the bank/party5. Due on: The last date for the payment (Due date).6. Overdue by days: The number of days passed from the date of payment.TDS reportsGateway of Tally→ Display→ Statutory Reports→ TDS Reports

TDS Form 16A

TDS Form 27A

ShortcutsThe shortcut keys appear in button names in the button bar (right side of the Tallyscreen). You can either click the button from the button bar or press the relevantfunction key or character underlined/double-underlined.

Function Key Combination

Windows Functionality AvailabilityF1 To select a

companyAt all masters menu screen

F1 To select theAccountsButton

At the Accounting Voucher creation and alterationscreen

F1(ALT+F1)

To select theInventory

To view thedetailed orcondensedreport

At the Inventory/Payroll Voucher creation andalteration screen

Inalmost all the Reports

F1 (CTRL+ F1)

To selectPayrollVouchers toalter

At the Accounting/Inventory voucher creation oralteration screen.

F2 To change thecurrent date

To selectcompanyinventoryfeatures

At almost all screens in TALLY.ERP 9

At the F11: Features screen

F3 To select thecompany

To selectCompanyStatutory &Taxationfeatures


At F11: Features screen

F4 To select theContravoucher

At Accounting / Inventory Voucher creation andalteration screen

F5 To select thePayment


voucher

F6 To select theReceiptvoucher


F7 To select theJournalvoucher


F8 To select theSales voucher


F8(CTRL+F8)

To select theCredit Notevoucher


F9 To select thePurchasevoucher


F9(CTRL+F9)

To select theDebit Notevoucher


F10 To select theReversingJournalvoucher


F10 (Ctrl +F10)

To select theMemorandumvoucher

At Accounting / Inventory / Payroll Voucher creationand alteration screen

F11 To select theFunctions andFeaturesscreen


F12 To select theConfigurescreen


Special Key Combination

Windows Functionality AvailabilityALT + 2 To Duplicate a voucher At List of Vouchers – creates a voucher

similar to the one where you positioned thecursor and used this key combination

ALT + A To Add a voucher

To Alter the column incolumnar report

At List of Vouchers – adds a voucher afterthe one where you positioned the cursorand used this key combination.

Alters the column in all the reports whichcan be viewed in columnar format

ALT + C To create a master at avoucher screen (if it hasnot been already assigneda different function, as inreports like Balance Sheet,where it adds a newcolumn to the report)

To access Auto ValueCalculator in the amountfield during voucher entry

At voucher entry and alteration screens, ata field where you have to select a masterfrom a list. If the necessary account has notbeen created already, use this keycombination to create the master withoutquitting from the voucher screen.

At all voucher entry screens in the Amountfield

ALT + D To delete a voucher

To delete a master

To delete a column in anycolumnar report

(if it has not been alreadyassigned a differentfunction, as explainedabove)

At Voucher and Master (Single) alterationscreens. Masters can be deleted subject toconditions, as explained in the manual.

All the reports screen which can be viewedin columnar format

ALT + E To export the report inASCII, Excel, HTML ORXML format

At all reports screens in TALLY.ERP 9

ALT + I To insert a voucher

To toggle between Itemand Accounting invoice

At List of Vouchers – inserts a voucherbefore the one where you positioned thecursor and used this key combination.

At creation of sales and purchase invoice

ALT + G To select the LanguageConfiguration


ALT + K To select the KeyboardConfiguration


ALT + O To upload the report atyour website


ALT + G To select language forTALLY.ERP 9 Interface

At almost all screens of TALLY.ERP 9

ALT + M To Email the report At all reports screens in TALLY.ERP 9

ALT + N To view the report inautomatic columns

At all the reports where columns can beadded

ALT + P To print the report At all reports screens in TALLY.ERP 9

ALT + R To repeat the narration indifferent voucher type

At all Vouchers in TALLY.ERP 9

ALT + S To bring back a line youremoved using ALT + R


ALT + U To retrieve the last linewhich is deleted using Alt+ R


ALT+ V From Invoice screen tobring Stock Journal screen

At Invoice screen > Quantity Field > PressAlt + V to select the Stock Journal.

ALT + X To cancel a voucher inDay Book/List ofVouchers

At all voucher screens in TALLY.ERP 9

ALT + R To repeat the narration indifferent voucher type

At almost all screens in TALLY.ERP 9.

CTRL + A To accept a form –wherever you use this keycombination, that screenor report gets accepted asit is

At almost all screens in TALLY.ERP 9,except where a specific detail has to begiven before accepting

CTRL + B To select the Budget At Groups/Ledgers/Cost Centres/Budgets/Scenarios/Voucher Types/Currencies (Accounts Info) creation andalteration screen

CTRL +ALT + B

To check the CompanyStatutory details

At all the menu screens

CTRL + C To select the Cost Centre

To select the CostCategory

At Groups/Ledgers/Cost Centres/Budgets/Scenarios/Voucher Types/Currencies (Accounts Info) creation andalteration screen

At Stock Groups/ Stock Categories/ StockItems/ Reorder Levels/ Godowns/ VoucherTypes / Units of Measure ( Inventory Info)creation/alteration screen

CTRL+ E To select the Currencies At Groups/Ledgers/Cost Centres/Budgets/Scenarios/Voucher Types/Currencies (Accounts Info) creation andalteration screen

CTRL + G To select the Group At Groups/Ledgers/Cost Centres/Budgets/Scenarios/Voucher Types/Currencies (Accounts Info) creation andalteration screen

CTRL + H To view the SupportCentre

At Almost all screens in TALLY.ERP 9

CTRL + I To select the Stock Items At Stock Group/ Stock Categories/ StockItems/ Reorder Levels/ Godowns/ VoucherTypes / Units of Measure ( Inventory Info)creation/alteration screen

Ctrl + Alt +I

To import statutorymasters

At all menu screens

CTRL + K To Login as RemoteTally.NET User

At Almost all screens in TALLY.ERP 9

CTRL + L To select the Ledger

To mark a Voucher asOptional


At the creation and alteration of Vouchers

CTRL + O To select the Godowns At Stock Group/ Stock Categories/ StockItems/ Reorder Levels/ Godowns/ VoucherTypes / Units of Measure ( Inventory Info)creation/alteration screen

CTRL + Q To abandon a form –wherever you use this keycombination, it quits thatscreen without making anychanges to it.

At almost all screens in TALLY.ERP 9.

CTRL + R To repeat narration in thesame voucher type

At creation/alteration of voucher screen

CTRL + Alt+ R

Rewrite data for aCompany

From Gateway of Tally screen

CTRL + S Allows you to alter StockItem master

At Stock Voucher Report and GodownVoucher Report

CTRL + U To select the Units At Stock Groups/ Stock Categories/ StockItems/ Reorder Levels/ Godowns/ VoucherTypes / Units of Measure ( Inventory Info)creation/alteration screen

CTRL + V To select the VoucherTypes

To toggle between Invoiceand Voucher


At creation of Sales/Purchase Voucherscreen

CTRL + K To login to Control Centre At almost all screens of TALLY.ERP 9

CTRL + H To access Support Centre.Wherein you can directlypost your queries on thefunctional and technicalaspects of Tally.ERP9,Shoper and

At almost all screens of TALLY.ERP 9

Tally.Developer.

Alt + Enter To view the Voucherdisplay

At Day Book and almost all VoucherReports

Alt + S To view Stock Queryreport

At all Voucher Creation and Alterationscreens where inventory is applicableexcept Contra, Reversing Journal,Memorandum and Physical StockVoucher

Special Function Key Combination

Windows Functionality AvailabilityALT + F1 To close a company

To view detailedreport

To explode a line intoits details

To select Inventoryvouchers to alter

At all menu screens

At almost all report screens


At the Inventory/ Payroll voucher creation oralteration screen.

ALT + F2 To change the period At almost all screens in TALLY.ERP 9

ALT + F3 To select thecompany info menu

To create/alter/shut aCompany

At Gateway of Tally screen

ALT + F4 To select thePurchase OrderVoucher Type

At Accounting / Inventory Voucher creationand alteration screens

ALT + F5 To select the SalesOrder Voucher Type

To view monthly andquarterly report


At almost all report screens in TALLY.ERP 9

ALT + F6 To select theRejection OutVoucher Type

To change the SalesOrder Voucher Type


ALT + F7 To select the Stock At Accounting / Inventory Voucher creation

Journal VoucherType

To accept all theAudit lists

and alteration screens

At Tally Audit Listing screen

ALT + F8 To select theDelivery NoteVoucher Type

To view theColumnar report


At Ledger Voucher screen

ALT + F9 To select the ReceiptNote Voucher Type


ALT + F10 To select the PhysicalStock Voucher Type


ALT + F12 To filter theinformation based onmonetary value

At almost all report screens

Ctrl + F1 To select payrollvouchers foralteration

At the Accounting/Inventory Vouchercreation or alteration screen

CTRL + ALT+ F12

AdvancedConfiguration

At Gateway of Tally

Key Combination Used for Navigation

Windows Functionality AvailabilityPgUp Display previous voucher

during voucher entry/alterAt voucher entry and alteration screens

PgDn Display next voucher duringvoucher entry/alter

At voucher entry and alteration screens

ENTER To accept anything you typeinto a field.

To accept a voucher ormaster

To get a report with furtherdetails of an item in a report

You have to use this key at most areasin TALLY.ERP 9

At the receivables report – press Enterat a pending bill to get transactionsrelating to this bill (e.g., original salebill, receipts and payments against thisbill, etc)

ESC To remove what you typedinto a field


To come out of a screen

To indicate you do not wantto accept a voucher ormaster

SHIFT +ENTER

Collapse next level details At Voucher Register screen and TrialBalance report

SHIFT +ENTER

To explode a line into itsdetails

In almost all Reports:

At a Group/Stock Group/CostCategory/Godowns /Stock Category –displays Sub Groups and Ledgers/StockItems/Cost Centres/SecondaryGodowns/Secondary Stock Categories

At a Voucher – displays its entries andnarration

At a Stock Item- displays its godownsand batch details

At Voucher Register screen – displaysthe next level details

At Trial Balance report - displays thenext level details

CTRL +ENTER

To alter a master whilemaking an entry or viewinga report

At voucher entry and alteration screens

At all reports

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