Tally Training Manual | Debits And Credits | Expense

TALLY ERP 9 TRAINING MANUAL Tally ERP 9 is a resource enterprise planning an improvement from the previous Tally 9 in which

various advancements have been included. Resource enterprise planning is an advanced software system which can be used for both large and SMEs. In which it incorporates all the information that a business organization needs to plan and strategize for business goals. Tally ERP 9 goes on long way in inventory management, financial reporting, Book-keeping, auditing techniques/facilities, payroll management, Bank reconciliations, information and database for clients etc. Tally ERP 9 is a user friendly software, easy to learn and a useful accounting software in controlling and helping business achieve their financial goals. For the effectiveness and efficiency of this software, the documentation has to be transparent and organized, for example, the purchasing and selling transaction documents have to be well documented and organized for example , invoices availability, validity and fully documented with all available information orders, delivery notes, vouchers, debit and credit notes, proforma/quotations etc. Tally ERP 9 offers a unique facility where a business owner can access his/her accounts from anywhere in the world using remote access as it has internet connectivity where you only have to input your business remote access password saving time and money. Its also used for printing of documents for e.g. invoices, orders, delivery notes, receipts, etc. PROCEDURES MANDATORY TO THE TALLY ACCOUNTING SYSTEM. 1. Opening up a company (This is a procedure which is designed to record all data pertaining to the company/business from address, location, currency to be used, information entered should be accurate because this information will appear on all correspondences with clients and stakeholders that is; on all invoices, orders, receipts, customer and supplier statements etc and it’s the foundation for all configuration in the system). Go to Gateway of Tally, Company Information, Create Company. The company creation screen appears;

Enter mobile number of the company. e) PIN Code (Specify the PIN Code.The books of accounts of a company aremaintained for a stipulated period of time for example. debtors statements. l) Financial year from.Enter the Telephone number. 12 months for the most companies. profit and loss etc.Set this to Yes. you enter the base currency symbol will be used but for our case we shall enter none. balance sheets. the data backup is stored in the data folder of the respective company. if you want to enable the automatic backup of Tally ERP 9. reports and data from Tally ERP9. f) Telephone.Currency Symbol is the symbol of the base currency. d) State (you can select the appropriate state from the predefined list but since Uganda does not exist. suppliers statements. i) Enable how to backup. g) Mobile number. j) Currency.a) Name (Enter the name of the company whose books are being opened) b) Mailing Name and Address. Tally ERP 9 displays a drop down for the type of company with two options Accounts only and accounts with inventory.Enter the email address that will be used to email documents. Any country that will appear on the list.Postal Index Number of the specified address (for Uganda’s case. since Uganda does not appear on the list. . Select accounts with inventory (if you have inventory transactions) to maintain both financial and inventory. c) Statutory Compliance for Select the country from the list of countries. you are required to enter none. select none. If the currency that will be used to maintain the books of accounts. k) Maintain. ignore). the mailing name will be used as inclusion on any report and correspondences for example. h) Email Address.

n) Tally Vault Password. p) Use Tally audit features. if you want to initiate a password. Tally information into unrecognizable information. protected system to control access to the system else set this to No. On accepting the company creation screen. the financial year will be form April to March ending with March 31 2009. Close books in that other system on the previous day and start books on Tally ERP 9 form this day. one can not access the data. password and repeat in the respective fields. Assuming the Tally Vault Password and use security control is set to yes. m) Books beginning from. 2. This basically results in the creation of an encrypted company whose information is not accessible to users other than the password holder.This is an enhanced security system. for example. the system offers a comprehensive password based access control to different features of Tally ERP 9 based on authority created by administrator. Then Tally ERP 9 prompts you to enter the name of user and password. 2008 as the date. o) Use security control.Tally ERP 9 presumes that wish to maintain books from the beginning of the financial year automatically. enter the name of administrator. If you enter October 1 2008. Give a password here and repeat the same in the repeat field. If you opt for Security Control. The concept can be applied even when you are migrating to Tally ERP9 form any other system or from a Manual accounting system on any day during the financial year. 1. the financial year will be from October 2008 to September2008 ending with 30th September every year. if you enter April 1.Allows you to track changes in accounting information for easy control of all financial data. Encryption involves converting normally accessible. if any. Remember if the password is forgotten. as the financial year from then. which allows for encryption of the company data. . You are allowed to give Opening balances of all ledger accounts including revenue accounts. if you have specified Tally Vault Password.This period is referred to as the Financial Year.Set this to Yes. which can only reconverted by authorized persons.

After verification. Formal Name. Number of decimal places. iv.Full name of the currency specified. the system imports the latest statutory masters. This computes the company creation process.For countries which specify the symbol after the amount (values). Financial reports are prepared in the base currency and these are normally required to be submitted to local statutory authorities. URA. The other facilities would be ignored. IS Symbol Suffixed to amounts. this may be set to 0 as the Ugandan currency does not require this.000. then the import is complete. 4. Base Currency Information. The base currency information in Tally ERP 9 varies with the country selected for statutory compliance. This facility is provided for example. ii. You can record transactions and raise invoices in foreign currency and also maintain bank accounts or ledgers in foreign exchanges when required. This is the currency in which your accounts would be maintained. Banks etc. If you want the amounts to show Ush.Found in the bottom forms of company creation screen.3.This is useful for companies which require reporting the financial reports in millions. 1.Cash and Bank.000. . An explanation on the fields on the buttons of the company creation screen follows. $5000 or Uganda. for example. The system uses this currency symbol in reports whenever necessary. the Uganda Shillings. i.The currency symbol gives earlier in the company creation screen is displayed here automatically. Wait till the screen shows 100%. Base Currency Symbol. CREATING ACCOUNTS. i. Show amounts in millions. v.This is set to two automatically by the system (by default) but for some currencies for example. iii. this can be ignored for showing values in Uganda Shillings.

These should be under Sundry debtors and Sundry creditors respectively in the group accounts and details of the . Under. Under masters. c.for cash accounts created for the business and 2000. etc.This allows/contains masters like create. 1.Cash accounts. open a cash account for the business or open a bank account for the business for example. ALIAS. In the ledger screen say. purchases. Gateway of Tally (Introduction stage to all Tally ERP 9 accounts/data). which means you can give another name for the account which could be used for external reporting purposes. For debtors and creditors accounts (Accounts receivables and payables). This will be under current assets which will appear. Go to create. liabilities. cash operations or stanbic bank account. alter and display functions. Under. 3.for bank accounts. a. assets. Go to ledgers. Then the ledger creation screen appears.Create a ledger for example. Name. click on the accounts info. 1000 cash operations or 2000 Stanbic bank and ALIAS you can say Cash Operations or Stanbic bank. ALIAS means also known as.This allows you to enter another name for the account its advised to always identify a ledger with an account code for example.for expense accounts.for debtors accounts. 2. b.This facility helps you create various accounts in that will be used in entering various data about transactions in the company operations here you can create expenditure. 4000. all transactions of the cash and bank will be recorded and updated. In the balance sheets (financial report) all the bank and cash balances will appear in the current assets under cash in hand. 3000. bank accounts etc should all be entered under the group to which they belong for example 1000 cash operations will be under cash in hand in the group accounts. you could give a code of 1000. sales. 4. These accounts facilitate controls in the inflows and outflows of cash in the business.

Go to Alter. Accept?. 3. Go to Gateway of Tally and click on Accounts info. This facility enables easy entry of data as both the account to be debited and credited are easily entered. creditors and debtors details should be entered to allow for easy accessibility of all required information. 1. . and contra. Accounting vouchers. Using Manual Numbering.bank accounts. If you are entering a cash or bank receipt. for payments made in either bank or cash click on payments. a) Go to Accounting Vouchers. c) Under the payment configuration window. debtors. click on Receipt. From Gateway of Tally (always introduction point). Entry of data using credit and debit Notes. creditors. 2. 2. say yes and use cr/dr instead of to/by. bank. Go to the right pane and click on the different options available. d. Opening Balance. stock etc. purchases etc. Go to Voucher types. b) Go to configure on the right pane option. Click on purchases however you can use Journals to enter sales or purchases transactions.If you say yes. receipt. click on use single entry mode for payment. This will apply for cash. for sales click on sales purchase. say yes. e. then the above details are saved into the system. cash. We shall enter all transactions from sales.This is the balance as per the dates when the books were opened as shown. 1. ENTERING TRANSACTIONS This is the facility that allows you to enter the various transactions data in the books called Book-Keeping.

2. the data entered in the system is not directly saved but is saved in the optional facility where a print out is made and someone else confirms the transactions from the original documents/vouchers and when there are any errors made. 1. Go to Accounting Vouchers. Using optional vouchers This facility helps in making sure that transactions entered in the systems are correct and accurate to minimize on the errors and inefficiencies of the manual system. The main aim of this facility is to allow numbering of documents based on their serial numbers for example the invoice number. the voucher numbers. Then the voucher type alteration window appears. When this facility is activated. Go to Gateway of Tally. Alter. 4. a. 2. Using contra entry.4. For transactions of the same nature for example. When the accounting voucher creation screen appears. 5. . click on the F4. the receipt number for easy identification and reference from the Tally ERP 9 system to the file records. highlight purchases voucher. 1. Highlight a payment voucher. Under method of voucher numbering. Enter the transaction. then they are rectified and eventually the transactions are confirmed in the system. contra to button on the right hand pane and enter. Voucher types. 3. transfer of cash from cash to bank or bank to cash accounts. if you are entering sales. highlight a sales voucher. 4. And a list of voucher types will appear. Go to Accounts info. based on the transactions you are entering. highlight/click on manual and then enter. we use the contra entry facility on the right pane. 3. if you are entering purchases. Go to Gateway of Tally. if you are entering payments.

click on make optional as default to yes and enter. 4. 2. Go to cost centers 4. a job/contract or a department. Go to voucher types. 1. delivery notes etc automatically with all accounting features. click on payment vouchers on purchases or contra etc. 5. 6. In the voucher type alteration window. Go to Alter. Invoices. receipts. DFCU job. Orders etc. Ignore the rest and enter in this way you have created a cost center. sales order etc. This facility helps to automatically printout receipts vouchers. invoices. 1. Go to Accounts info. Based on the transaction type you are entering for example payments. Go to Gateway of Tally. 3. payment vouchers. The main aim of this facility is to help the business owner know how much he spends on a particular job/contract or area and the sales with the eventual profit for easy control of the business. 2. Go to Enter the voucher type you would like to print for example sales. . Creating cost centers. Printing vouchers. SACCO 1 job etc. 6.Enter the name of the cost center for example office.5. Go to Gateway of Tally. 3. A cost center is an area in the business which incurs expenditure. When the cost center creation window appears under name. This can be an office. Receipts. In this way all transactions will first be confirmed before being saved in the system. Go to single cost center to create. Go to Accounts info. 5. These documents are professional and improve on the reputation and image of a business especially for a business which wants to deal with large corporate businesses.

Under single stock group. 1. batteries. here we create groups like inverters. inverters batteries. Can quantities of items be added. 1. and solar panels etc. the Tally ERP 9 system will ask you if you want a print out. enter the name of the group for example.rolls and meters etc. measurements will be in pieces for wires. Go to Gateway of Tally. receipt to a customer. . Go to Inventory info. For solar panels. say yes. 2. batteries and inverters. The measurements in this case will be. Go to inventory info. In this way it would be very convenient in case you want to issue out an invoice. Creating stock units helps in making measurements for various stock items that will be purchased or sold. 5. this will help the business in easy organization and arrangement of stock and also reporting. CREATING STOCK UNITS. Go to units of measure. 4. 2. In this way.6. then enter follow this procedures for other groups. When the voucher type alteration window appears. 4. after entering the details. go to create. 3. When the stock group creation screen. and solar panels. Go to create. activate the printing section to yes. 6. Go to Gateway of Tally. 3. STOCK GROUP CREATION This facility helps in creating stock groups in which other classification will be created for example. wires. Go to stock groups. bulbs.

6. 3. Go to inventory info. we shall create a stock database with its value. Or DAL. . 4. rolls (rls).5. Accessing Data/ Information. This facility will help in accessing all information in the accounts that have been created and the transactions entered. Under this facility. Go to ledgers. 75 watts bulb which will be under bulbs. enter the quantity in stock. etc. Do this for all other stock items. the units will be pieces. For example. 1. In this way. under the solar panels group we shall have stock items for example. 3. 5. we shall be able to access all reports which will help the business owner assess the value of his business.5 watts panel. 7. Under unit creation in symbol. assess performance. 5. know the profits. Under opening balance. enter the stock item for example.5 watts panels. Through this procedure. Under single stock item create. 4. we shall create the various classifications under the stock groups. under the rate input the initial cost/purchase price and the value will appear automatically. enter the abbreviation for example PCS (pieces). Go to stock items. 2. Go to Gateway of Tally. Accessing Reports from Accounts. 3. CREATING STOCK ITEMS. meters (mtrs). this will enable easy issuing and purchasing of stock in the inventory database. Go to Display. And enter. Go to Gateway of Tally. All accounts will appear. 2. 6. Under the stock item creation window. Go to Accounts books. 1.

a. The profit and loss accounts: Shows the incomes and the expenditure and eventual profit/loss. Inventory books 4. banks. we shall be able to know our opening and closing inventory balance. record all our receipts (inflow) and outflows of cash. With this procedure. This will be under cash in hand in the Tally ERP 9 system. To interpret the above reports effectively. This account will help control the cash flows in the business. Accessing the movement of stock. 1. The Balance sheet: shows the assets and liabilities and eventually showing the financial position of the business. URA and other statutory authorities are very much interested in this report. Gateway of Tally. Accounts to be Opened up. b. profit and loss accounts. Under inventory books. balance sheet. 2. click on the report you are interested in for example. accounting knowledge is required that’s why I have been equipping each dealer with accounting knowledge for this purpose. rate per item and the eventual value of stock we have in the stock database at any given period of time. Ratio Analysis: This enables the business owner appraise/measure the value and performance of his business. The various purchases of stock when it was purchased. The Stock Summary: Shows the quantity. d. . investors. click on the items you would like to access. stock summary and Ratio analysis. Go to Gateway of Tally. c. Display 3.1. 2. the eventual sales (issues) and the corresponding values and the closing stock value and amount. Under reports. this helps the business owner control his/her business effectively. Cash: The cash operations account: here we shall record our opening balance as per the financial reporting date.

Depreciation. Clearing and handling. Travelling expenses. Maintenance. These included. 13. Sales Consultancy: These sales accounts will record how much income is earned from installation and consultations on jobs/contracts. 5. DFCU. . The purpose of this is to track all inflows and outflows of cash from our bank accounts for easy control. Stationery. 7. Provision of losses. Insurance costs. Salaries and wages. Here we shall have to enter the opening balances from the bank statements from which we shall start making all transactions. 14. 11. Rent 9. 2. 6. Bank charges 12. all bank accounts are under. Centenary bank. 3. Fuel. Transport.Bank: We shall open up accounts for the various Bank accounts we hold for example Stanbic bank. Advertising and publicity. 8. The bank accounts groups in Tally ERP 9. 4. Utilities 10. 1. Expense Accounts: We opened up expense accounts in order to track the expenditure the business incurs for proper control.

Furniture and fittings. in here. printers and other machines. When we are opening up fixed assets accounts in Tally ERP9. Rent for the office is a direct expenses but power. modems and other items connected to ICT. furniture. Fixed Assets Accounts These are assets which are brought by the business to help in the operations of the business and there is no intention of selling the assets for example computers. Tool and Equipment. we record tools used on the job. Under expenses. we record assets like motor vehicles. 2. a direct expense. 4. we record assets of the furniture of the business. 1. motor vehicles. 3. The file boards/shelves.Sales Account: This account will record how much income is earned from items like wires. The balance sheet is an important financial report which is demanded by banks and other statutory authorities and also for building purposes. bank charges. transport or travel expenses spent on a job. Accounts opened up in tally erp 9. Motor vehicle. they will be under fixed assets group all the records and values of these assets will appear in the fixed assets in the balance sheet. . interest charged on loans are all indirect since they can not be attributed to a specific cost area. we record assets like computers. ICT equipment. sockets etc. bulbs. we have direct and indirect expenses. generators etc. These accounts are important in that they are reported in the balance sheet which shows the financial position of the business and the financial picture of the business. generators. Direct expenses can be attributed to a specific cost center for example.

to show us what items we have purchased and what amount of money was spent. batteries and solar panels. Sales Hardware: Recording sales for inverters. Most of these may be big (corporate businesses for example. In Tally. banks and sales which only make lump sump payments and the accounts need to be tracked. Sales Accounts: We also open up sales/turnover/income accounts to track how much sales/income we make in a given period of time and which items bring in more income and vice versa.In Tally ERP 9. . In Tally ERP 9. These include. Creditors’ Account/Accounts Payables. each expense account should fall under direct and indirect as deemed by the business owner. In Tally. the private accounts will be under current assets group. the various debtors’ accounts will be under sundry debtors as the group accounts. These are under purchase accounts groups in Tally ERP 9. The creditors account will show all the transactions that take place between the business and all suppliers who give us on credit. all the individual creditors’ accounts will be under sundry creditors. i. This account will show how the business is demanding from a customer especially us. Debtors Accounts (Accounts Receivables) This will record all the invoices we issue to clients and customers and the subsequent payments that are made on the account. The main aim of this account is to show the true profit the business makes. Purchase Accounts: We open up purchase accounts.

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