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Mis in Tally

Mis in Tally

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Sections

  • 1.1 Business Processes
  • 1.2 Management Information System
  • 1.1 Chart of Accounts
  • 1.2 Accounts Receivable/Payable
  • 1.2.1 Groups and Sub-Ledger concept
  • 1.2.2 Receivables and Payables
  • 1.2.3 Credit Control
  • 1.3 Interest Calculations
  • 1.3.1 Simple Mode
  • 1.3.2 Advance Mode
  • 1.4 Cost Centres, Budgets & Scenarios
  • 1.4.1 Cost Centre
  • 1.4.2 Cost Categories
  • 1.4.3 Budget
  • 1.4.4 Scenario Management
  • 1.5 Bank Reconciliation
  • 1.6 Forex Management
  • 1.6.1 Creating Foreign Currency
  • 1.6.2 Voucher entry in Foreign Currency
  • 1.6.3 Display books with/ in Foreign Currency
  • 1.6.4 Adjusting Forex gain/ loss
  • 1.6.5 ASCII values for Foreign Currencies
  • 1.7 Final Accounts
  • 1.7.1 Trial Balance
  • 1.7.2 Profit & Loss A/c
  • 1.7.3 Balance Sheet
  • 1.8 Management Reports & Functionalities
  • 1.8.1 Ratio Analysis
  • 1.8.2 Cash Flow
  • 1.8.3 Funds Flow
  • 1.8.4 Exception Reports
  • 1.8.5 Filters to Reports
  • 1.8.6 Highest / Lowest / Average Balances
  • 1.8.7 Flexible Periods Accounting
  • 1.8.8 Presentation Manager
  • 1.8.9 Percentage based Reporting
  • 2.1 Classification of Stock Items
  • 2.2 Reorder Level
  • 2.2.1 Assigning Reorder Level
  • 2.2.2 Reorder Status
  • 2.3 Multiple Price Levels
  • 2.4 Reports
  • 2.4.1 Stock Summary
  • 2.4.2 Movement Analysis
  • 2.4.3 Stock Ageing Analysis
  • 2.4.4 Stock Query
  • 3.1 Tally.ini - Tally Configuration File
  • 3.2 Consolidation
  • 3.3 Security
  • 3.3.1 Security Control
  • 3.3.2 Tally Audit
  • 3.3.3 Tally Vault
  • 3.4 Data Management
  • 3.4.1 Backup & Restore
  • 3.4.2 Export & Import of Data
  • 3.4.3 ODBC ( Only for Microsoft -Windows)
  • 3.4.4 SQL server within Tally
  • 4.1 Introduction to Tally Data Synchronization
  • 4.1.1 System Requirements
  • 4.1.2 Precautions
  • 4.2 Data Synchronization using Tally.NET
  • 4.3 Synchronization — Private Network
  • 4.3.1 Configuring for Synchronization
  • 4.3.2 Procedure for Synchronization
  • 4.3.3 Security Issues
  • 4.3.4 Web page as a pass-through
  • 4.3.5 Troubleshooting
  • 4.4 Principle of ‘Synchronization in Tally’
  • 4.5 Synchronizing back-dated vouchers

MIS in Tally 9

©Tally (India) Pvt. Ltd. 2008 Contents of this document, the design and layout is the intellectual property of Tally (India) Private Limited. Names of companies and persons used in this publication are hypothetical and have been used for illustrative purposes. No part of this publication can be reproduced or transmitted in any form or by any means without the prior written permission of Tally (India) Private Limited. Breach of this condition is liable for legal action. Important: Information in this document is subject to change without prior notice and does not represent any commitment on the part of Tally (India) Private Limited. This publication is being issued and released on the condition and understanding that the information, comments and views it contains are merely for guidance and must not be taken as having the authority of or being binding in any way on the author, editors, publishers, printers and distributors who do not owe any responsibility whatsoever for any loss, damage or distress to any persons, whether or not a bonafide user, on account of any action taken or not taken on the basis of this publication. Despite all the care taken, errors or omissions may have crept inadvertently into this publication. Tally (India) Private Limited shall be obliged if any such error or omission is brought to their notice for possible correction in a future edition. All disputes are subject to the jurisdiction of the competent courts in Bangalore. Trademarks: Tally, POWER OF SIMPLICITY are registered trademarks of Tally Solutions FZ-LLC. Use of other names including product features is duly acknowledged and they continue to belong to their respective owners.

Version: MIS in Tally 9/1.0/August2008

Contents
Introduction
Business Processes ....................................................................................................................................................1 Management Information System...........................................................................................................................2

Lesson 1: Advanced Accounting
1.1 Chart of Accounts .............................................................................................................................................4 1.2 Accounts Receivable/Payable ........................................................................................................................4
1.2.1 Groups and Sub-Ledger concept ................................................................................................................4 1.2.2 Receivables and Payables...........................................................................................................................6 1.2.3 Credit Control...........................................................................................................................................10

1.3 Interest Calculations .......................................................................................................................................11
1.3.1 Simple Mode .............................................................................................................................................12 1.3.2 Advance Mode ..........................................................................................................................................21

1.4 Cost Centres, Budgets & Scenarios .............................................................................................................23
1.4.1 1.4.2 1.4.3 1.4.4 Cost Centre ...............................................................................................................................................23 Cost Categories ........................................................................................................................................23 Budget .......................................................................................................................................................27 Scenario Management ..............................................................................................................................27

1.5 Bank Reconciliation .......................................................................................................................................31 1.6 Forex Management .........................................................................................................................................35
1.6.1 1.6.2 1.6.3 1.6.4 1.6.5 Creating Foreign Currency ......................................................................................................................35 Voucher entry in Foreign Currency .........................................................................................................36 Display books with/ in Foreign Currency ................................................................................................37 Adjusting Forex gain/ loss ........................................................................................................................39 ASCII values for Foreign Currencies .......................................................................................................42

1.7 Final Accounts ................................................................................................................................................42
1.7.1 Trial Balance ............................................................................................................................................42 1.7.2 Profit & Loss A/c ......................................................................................................................................43 1.7.3 Balance Sheet............................................................................................................................................45

1.8 Management Reports & Functionalities .....................................................................................................46
1.8.1 1.8.2 1.8.3 1.8.4 1.8.5 1.8.6 1.8.7 1.8.8 1.8.9 Ratio Analysis ...........................................................................................................................................46 Cash Flow.................................................................................................................................................48 Funds Flow ...............................................................................................................................................51 Exception Reports.....................................................................................................................................52 Filters to Reports ......................................................................................................................................56 Highest / Lowest / Average Balances .......................................................................................................59 Flexible Periods Accounting.....................................................................................................................60 Presentation Manager ..............................................................................................................................61 Percentage based Reporting .................................................................................................................62

i

...................................................................................142 ii .............................................4 Backup & Restore ................3 Security ................................99 3.............................NET .2 Reorder Level ..........................140 Troubleshooting ..........3 3..................................................4....................................................................................................................119 4....2 Data Synchronization using Tally..........................3..69 2...................................................................................................................................................................................................................................................88 3..................................................................................................................................................Contents Lesson 2: Advanced Inventory 2.......2 4..............................................................142 4.......4 4.................................................................................120 4...................................3......................................1 2...................................2 3..........................................................................88 3............................................................................................2 2.3 Synchronization — Private Network .......................................................................2 Precautions ...1 Security Control..........................4 Reports........................................................................4.............117 Lesson 4: Data Synchronisation 4.....70 2............121 4.............2...............................................................105 ODBC ( Only for Microsoft -Windows)................................................................3......................................................................................................1 Tally....135 Security Issues ..................................................84 3...3 Tally Vault ...........................................................................1 System Requirements ...........................................3...........................................................................................................................................78 Stock Query.................................................3 2..................103 Export & Import of Data ............................................................................................................................................................65 2...........................................................................................................................................................................................................................3...........................1 Assigning Reorder Level.........71 Movement Analysis .................................................134 4........................................67 2......................................................................................................71 2......................1 4....................................................4 Stock Summary...................................................76 Stock Ageing Analysis....................4 Principle of ‘Synchronization in Tally’ .....4....3..................................................66 2..ini ...................1 Introduction to Tally Data Synchronization..140 Web page as a pass-through.............110 SQL server within Tally ......................................................................................134 Procedure for Synchronization...............4.81 Lesson 3: Administration 3..................................................................................102 3.......................................................................................................................................................120 4........4..............4 Data Management ...............94 3..1 3...............................................1.............................................2 Reorder Status .......................................................................................................................................................................................4..........................................................................................................3............2 Consolidation.........3 4................................................86 3............................................................5 Configuring for Synchronization ....................140 4..........................Tally Configuration File ..............................1...............................3..........................1 Classification of Stock Items .....................4....4.........................................................................................................................................................2 Tally Audit ...................................5 Synchronizing back-dated vouchers ................................2..........................3 Multiple Price Levels ................

sales. manufacturing. The business activities are day-to-day transactions like sending and receiving orders.1 Business Processes Business processes are a group of activities that a business undertakes in order to achieve its goal. i. and so on..e. accounts. etc. Typical business processes include purchase. These business processes rarely operate in isolation.Introduction 1. marketing products or services.1 Flow diagram of Business Process 1 . Figure 1. each of these business processes either depends on or is interlinked with other business processes.

Advanced Inventory and Administration & Housekeeping. while creating a Company in Tally. Tally has been designed as a business solution that can adapt to the existing business processes rather than modify the processes to suit the dynamics of the software. we highlight the salient features & capabilities to extract reports based on the data entered in Tally. we have classified it in different sections like Advanced Accounting. Right at the beginning. the process of configuring it in Tally can be done by either of the following ways: Get started with creating the accounting and inventory masters and input the opening balances. This enables rapid growth and better control of business. 1. Create accounts on the fly while recording transactions. 2 . Keeping this in view.Introduction These processes have a common function but differ in their workflow across various kinds of businesses. On creating a Company. In the earlier modules. we will discuss the remaining reports in detail. the option to maintain a Company as ‘Accounts only’ or ‘Accounts with Inventory’ proves the flexibility in implementing Tally. Sales and Manufacturing Process.2 Management Information System Tally packs enormous power to generate numerous reports for management information that assists management in taking correct & timely decisions. The primary concern for Management Information System of a business is to ensure that the knowledge necessary to drive critical business processes is available at the right place and time. In this module. In this module. Business transactions or business activities fall in place depending on the operations of a business. For the sake of convenience. we discussed various reports that are generated for Purchase.

Lesson 1: Advanced Accounting Lesson Objectives By the end of this lesson. you will be able to: Classify account information using Chart of Accounts Generate various reports for Receivables and Payables Configure Tally for Interest Calculations Create and manage Cost Centres. Cost Categories and Cost Centre Classes Maintain Budgets & Scenarios Generate Bank Reconciliation Statement Create Foreign Currencies & adjust Forex gain/loss Generate the Financial Statements & various MIS reports 3 .

finalization of accounts etc. Therefore in order to get desired reporting.2 Accounts Receivable/Payable 1. Creditors. 1. In order to trap errors based on the groups. number of Groups. In fact. bank reconciliation. For Example: In a Contra Voucher you can record transactions between Cash & Bank accounts. 1. The Accounts Group determines whether the ledger is classified under Profit & Loss A/c or Balance Sheet items. Tally creates 28 predefined Groups by default conforming with mercantile accounting conventions. Tally provides complete flexibility to organize Accounts Ledgers and Groups in a versatile way without any limit on depth of nesting. For visual clarity. An organisation may need to create hundreds of ledgers for Sundry Debtors. Tally filters the ledger accounts that would be available at each point while creating the voucher. The naming conventions of any of these Groups can be altered and further groups may be created as sub-Groups of existing groups or at primary level as per requirements. Employees etc. but that may clutter the Trial Balance or Group Summary when expanded to the lowest level.1 Chart of Accounts Tally follows Single Ledger concept of Accounting -all transactions are identified with the ledger accounts. form the important components of MIS.2. advance accounting activities like preparing chart of accounts. to conform with mercantile laws and provide meaningful reports. interest calculation.1 Groups and Sub-Ledger concept In vouchers. ledger accounts are directly transacted as there is no concept of Control-ledger and sub-ledger in Tally. Tally presents the Chart of accounts in a hierarchical tree like structure. 4 . the foremost task is to organize the Chart of Accounts as per reporting requirement. Sub Groups and Ledger Accounts that can be placed under any Group. Tally further provides Accounts Group to classify ledger information. Accounts Group serves both the purpose of classifying and identifying related ledger accounts according to their nature to present summarized information. Tally enables limiting this listing. only the related ledgers will pop-up for selection.Chapter Title Introduction As a statutory requirement.. all businesses maintain books of accounts. And displays ledgers ledgers permissible at that point. hence.

5 . Go to Gateway of Tally > Display > Accounts Book > Group Vouchers 1.1 Group Alteration screen This function prevents the user from viewing details of the group while showing the report in a detailed or exploded manner. A control ledger can be simulated with the help of the Accounts Group..e. Select the Group 2.Chapter Title To limit listing of sub-items (i. which behaves like a sub-ledger. Select the Sub-Ledger from the List of Groups drop-down The feature of viewing Group Vouchers is available for all accounts groups regardless of whether the feature Group to behave like a sub-ledger is enabled or not. A sub-ledger can be seen by viewing the Group Vouchers of the Account Group. to display only the group balance but not the underlying individual ledger balances) Go to Gateway of Tally > Accounts Info > Groups > Create or Alter 1. Set the Group behaves like a sub-ledger option to Yes Figure 1.

It also provides complete bill-wise information of amounts receivable and payable. Set Maintain balances bill-by-bill to Yes. bill history. Set Maintain Bill-wise Details to Yes. Credit Days and Amount in the Bill-wise allocation screen. enter bill-wise details like New Ref / Against Ref / Advance or On Account.2. To view the reports follow the steps listed below: Reports 1.2 Receivables and Payables Effective and efficient management of money leads to better deployment of funds and count in success of every business. credit sales are common. payments/receipts. Setup 1. Set Non Trading A/cs also to Yes. Tally can track bills. In the voucher involving the party. Bill Reference. Tally provides instant report of accounts outstanding.Chapter Title 1. To list bill by bill outstanding (receivable) for all parties Go to Gateway of Tally > Display > Statement of Accounts > Outstanding > Receivables Bill Receivables screen is displayed as shown. In F11: Accounting Features 2. For bill-wise tracking of non-party ledgers (For Example: Loans / Advances to Employee) 3. 6 . In most businesses. and advances on account payments and receipts. Timely realization of outstanding money from customer is an important function to ensure timely payment to creditors and smooth operation of business. In the Ledger Master 4.

Press F4 to toggle between Receivable and Payable.g. 30-45. press F6 and select either of these options: Ageing by Due Date. 7 . 45-90. 3. .. Ageing by Bill Date Figure 1.2 Bills Receivables Report The list displays pending amount as well as the due date along with over due days. Press Enter to display voucher alteration screen. 2. 15-30. 180 to get Age wise analysis for <15. 90.3 Ageing Methods screen Then define the date periods. To split the outstanding into different ageing slabs. Press Alt+F1 to display all vouchers related to the bills that are listed in subsequent rows in a particulars column. 45. 90-180. you may specify. >180 days. To list bill by bill outstanding (payable) for all parties Go to Gateway of Tally > Display > Statement of Accounts > Outstanding > Payable 1.Chapter Title Figure 1. e.

Chapter Title Figure 1.4 Company Ageing Alteration screen Figure 1. Select the Ledger. For individual party-wise outstanding. Receivables of an Accounts Ledger Receivables lists outstanding amount for all the parties.5 Bills Outstanding Report The user can press F12 and set the options to configure the display and content of the report. follow the path: Go to Gateway of Tally > Display > Statement of Accounts > Outstanding > Ledger 1. Global Traders 8 .

To view outstanding for a particular group under Sundry Debtors or any sub-group. class etc. 9 . This report lists bill-by-bill display of all outstanding bills for the selected party along with the total outstanding amount. region. Sundry Debtors would be classified under area. there exists any sub-group. On Account amount. Press F12 and set the options to configure display and contents of the report. The associated vouchers can be altered in case the references are not as required. name of the sub-group with total amount outstanding from the parties under the group will appear. Figure 1. In case.Chapter Title 2. follow the steps: Go to Gateway of Tally > Display > Statement of Accounts > Outstanding > Group 1. if any. press F4 and select the ledger or just press + key to view the bill-wise details of the next ledger. All the ledgers belonging to the selected group along with outstanding amount will be listed. Sundry Debtors 2. is shown below the outstanding particulars to reconcile the ledger balance. in an organization. To view outstanding for another party. Select the Group.6 Ledger Outstandings Report Press F6 for age-wise break-up. Press Alt+F1 for detailed report . Receivables for a Group Typically. Press Alt+F1 to display associated vouchers for each outstanding Bill.

3 Credit Control In a business where goods or services are sold on credit. it affects the business adversely.2. 1. the transaction crossing the credit limit. the management may wish to set a limit on credit to each party and ensure that credit exceeding the limit is not extended to the customer. To enable Credit Limit. In fact. Thus. would be declined. To get age-wise break-up. Figure 1. If the debtor. any 10 .7 Group Outstandings Report Press F5 to view ledger-wise listing. Credit Limit has been explained in the Sales process. it affects the complete cycle. the user has to enable Maintain Budgets & Controls option in the F11: Company Features. in order to curb potential bad debts and possible blockage of funds or slow collection. To view the bill wise details of the entire group select F7: Billwise. Payment Performance Analysis of Debtors Credit is the backbone of every business.Chapter Title Press F12 and set Expand all levels in Detailed Format to Yes and press Alt+F1 to list all parties’ details. But if the payment is not made in time. Press F12 to configure the contents. who pays in time. Tally provides the option to set Credit Limit for each party. press F6 and select ageing style and define ageing slabs. and during sales transaction entry. Only the authorized user can alter the Credit Limits. is given some incentive (such as some discount. it is important to analyze the collections.

It is a common business practice to charge interest on delayed payments. 11 . For advanced features of interest calculation (For Example: penal interest rate etc). it will result in increase of turnover. Set Activate Interest Calculations to Yes 2. for the ledgers for which Interest should be computed. Press F8 and select Ledger Payment Performance. It also allows special periods like 30 day month etc. which gives bill wise payment details and payment performance. Under F12: Configure. to meet traditional interest computations. 1. The following screen. in Ledger creation/alteration screen.8 Ledger Payment Performance Report 1. In order to carry out such an analysis. high return on investment and reduction of working capital need. Tally provides various methods of Interest computation which you can configure as per your requirement and get Interest Computation statement on Overdue Bills. select a debtor’s ledger from Display and set the period for which the analysis must be done. Use Advanced Parameters to Yes. Set Allow Advanced entries in Masters (under Accounts Master heading) to Yes. also penal & variable interest rates. will appear: Figure 1.Chapter Title other benefit). In F11: Features. Under F12: Configure. Setup 1.3 Interest Calculations Interest is the return on money invested or loans. Loan etc.

Normally interest is computed for ledgers under Sundry Debtors. Set Calculate Interest Transaction by Transaction to No 4. Interest may be computed in either of the two methods: On Outstanding Balance Amounts: In this method. Unsecured Loans. On Outstanding Bills/ Invoices/ Transactions: This is applicable for ledgers for which Bill by Bill option has been set to Yes e.3.9 Ledger Alteration screen 3. Sundry Debtors or Creditors. normally suitable for Loan Accounts where interest is computed on running balances of the account.Chapter Title 2. Set Activate Interest Calculation to Yes. 1. Set Activate Interest Calculation to Yes Figure 1. Sundry Creditors. Loans (Liability). Loans & Advances (Assets). Secured Loans. Type 24 in Rate 12 . Bank OD A/c.g. Select Solomon & Company from the List of Ledgers 2.1 Simple Mode On Outstanding Balance Amounts Step 1: Altering the Ledger Go to Gateway of Tally > Accounts Info > Ledgers > Alter 1. Many organizations need to compute Interest receivable or payable. interest is calculated on outstanding balance.

Select the option Debit Balances Only in on Figure 1. Press Ctrl+A twice to Accept To see the Ledger Interest Go to Gateway of Tally > Display > Statement of Accounts > Interest Calculations > Ledger Select Solomon & Company from List of Ledgers 13 .10 Interest Parameters screen 7. Select the option Calendar Year in per 6.Chapter Title 5.

11 Ledger Interest screen Only one Ledger is shown in the list of ledgers. They only give you the interest implications. Accounting for Interest Due & Accrued The example above shows that interest is being calculated but these have not been brought into books. Tally enables booking the interest implications through Voucher Classes in Debit Notes & Credit Notes. 14 . as only that ledger is enabled for Interest Calculations.Chapter Title Figure 1.

To create Voucher Class in Debit Note Go to Gateway of Tally > Accounts Info > Voucher Types > Alter 1.Chapter Title Interest can be calculated on Simple or Compound basis and separate classes should be used for them. Set Use Class for Interest Accounting to Yes and Amounts to be treated as Compound Interest to No 15 . Select Debit Note from the List of Voucher Types 2.12 Voucher Type Alteration screen 3. Type Simple Interest in the Name of Class field Figure 1.

Simple Interest 4. Type Compound Interest in Name of Class field to create another class 5.Chapter Title The Voucher Type Class screen is displayed as shown Figure 1.13 Voucher Type Alteration screen . Set Use Class for Interest Accounting and Amounts to be treated as Compound Interest to Yes Voucher Type Alteration screen is displayed as shown 16 .

Press Ctrl+F9 for Debit Note 3. Create Debit Note 1. Select Simple Interest as class in the Voucher Class field 4. create Simple Interest and Compound Interest Voucher Class in Credit Note To account for Interest Accrued as well as Interest Due create the following ledgers Interest Accrued under Indirect Income Interest Receivable under Current Assets Interest Due under Indirect Expenses Interest Payable under Current Liabilities Example On 31. the interest due upto Jan 09.2009.6542.67.14 Voucher Type Alteration screen .Chapter Title Figure 1. Press F2 and change date to 31-01-09 In Particulars.Debit Note Similarly. Select Accounting Vouchers 2. Solomon & Company appears automatically in the By field due to voucher class selected. a debit note is raised on Solomon & Compnay for Rs. 17 .01.

This ledger account can be 18 .15 Debit Note Voucher Creation 9. Type Interest Charged upto Jan 09 in Narration Debit Note Voucher Creation screen is displayed as shown Figure 1. select Interest Accrued in the To field 8. Now if you wish to charge simple interest then the interest amount should be nullified and the interest amount transferred to Interest Receivable ledger account. select New Ref and type Interest Upto Sept 06 7.Chapter Title 5. Press Enter to Accept When the ledger of Solomon & Company is viewed the ledger balance would increase by the interest amount debited. In the Accounting Voucher Creation screen. In Bill-Wise Details screen. Type 6542.67 in Debit 6.

Chapter Title enabled for Bill wise tracking of interest receivable. Under F11: Features. select Agst Ref and Interest Upto Jan 09 9. Type 6542.67 in Debit 6. Press Enter to Accept 19 . In the Accounting Voucher Creation screen.Jan 09 7. Select Accounting Vouchers 2.16 Journal Voucher Creation 10. Type Interest Receivable from Solomon & Company transferred in Narration Figure 1. In Bill-Wise Details screen. Press F7 for Journal 3. Press F2 and change date to 31-01-09 4. Create a Journal 1. set Billwise details for Non-Trading a/cs to Yes. In Bill-Wise Details screen. select Solomon & Company in To field 8. Select Interest Receivable in the By field 5. select New Ref and type Solomon & Company .

On Outstanding Bills/ Invoices/ Transactions For ledgers where Maintain Bill by Bill and Activate Interest Calculation is set to Yes.17 Interest Parameters screen 20 . you must use the account for which interest is enabled because that brings up the calculated interest amount.Transaction to No Interest Parameters screen is displayed as shown Figure 1. care should be taken to book it regularly for the desired period. Simple interest requires special treatment by way of an additional entry.Chapter Title Since interest has to be booked manually. set Calculate Interest Transaction -by. The Interest Calculation module is discussed in detail in Tally Graduate course material as well as in the online help of Tally. In the entry using interest class. Using another account like Interest Receivable will not bring up the amount and you would have to remember the figures from the interest statement to journalise them.

The Interest Parameters are as follows: On Balances: Select the balances on which interest should be calculated. Advanced Parameters Interest Calculations on outstanding balances. To View Ledger interest report Go to Gateway of Tally>Display>Statement of Accounts>Interest Calculations>Ledgers 1.Chapter Title Calculate Interest Transaction-by-Transaction: To get separate calculation for each transaction. set this to Yes. set this to Yes.3.2 Advance Mode The Advance Mode offers more options for Interest Calculation. 21 . (a) All balances b) debit balances only or (c) credit balances only.Interest Calculation screen 1.18 Global Traders . you would be prompted to input the rate of applicable interest for each transaction. Select Global Traders Interest Calculation screen is displayed as shown Figure 1. During Voucher entry. Override Parameters for each transactions: To enter different Interest rate for each transaction. else Interest computation will be similar to Outstanding Balance Amounts.

for example: 0. Override advanced parameters: To override advanced parameters set in ledger during voucher entry. set Yes. Enter the Rounding off limit. Figure 1. Normal Rounding. Override Parameters for each Transaction: To input different rates of interest for each transaction during voucher entry. Advanced Parameters -Interest Calculations on Outstanding Bills/ Invoices/ Transactions. namely.01. Downward Rounding.50. You get Interest Parameters screen as shown below. Thus in Advanced mode.00 in the field provided.Chapter Title Applicable from: Enter the date from which the rate is applicable to a specific date. you can specify whether the interest to be computed on all or particular balances. This enables different rates applicable for different periods. Upward Rounding.10. select the rounding methods from three available options. In case rounding off is not required select Not Applicable. During voucher entry you would be asked to enter Interest rate and periodicity for the transaction.19 Advanced Interest Parameters screen Calculate Interest Transaction-by-Transaction: Set Yes to get interest computation bill-by-bill. 0. Rounding Off: If the amount is to be rounded off. particularly useful for accounts where rate varies from period to period. This will cause an additional option Date Specified During Entry in Interest Appl From pop-up at Calculate From prompt to enable entering Date during voucher entry. specify varying interest rates for different periods with specified rounding methods and limits. set to Yes. 0. On Balances: Select from options available in Interest Balances pop-up (a) All balances (b) Credit Balances Only (c) Debit Balances Only 22 . 1.

Chapter Title

Applicability: Select from the options (a) Always (b) Past Due Date For the option Past Due Date, enter the number of days in the By field Calculate From: Select the option from Interest Appl From pop-up consisting of the following options: Date of Applicability: Due Date of Invoice/Ref. Date specified during Entry. Due Date and Invoice Reference EPF-Date of TRansaction The next field consists of the following options: Effective Date of Transaction: Date specified during Entry (appears if Override Advanced Parameters is set to Yes, if set to No – this option does not appear) Rounding: If the amount is to be rounded off select the rounding methods from three available options, namely, Downward Rounding, Normal Rounding, Upward Rounding. In case rounding off is not required select Not Applicable.

1.4 Cost Centres, Budgets & Scenarios
1.4.1 Cost Centre
A business, for achieving optimum cost-effectiveness, assigns its controllable costs to cost centres. Any unit of the organization to which costs can be allocated is a Cost Centre. For Example: Branches, Departments, Projects, Products, Persons and so on. Tally enables a business to allocate transactions to Cost Centres. For example, besides the ledger-wise accounting allocation, a transaction may be allocated amongst different Branches. Tally allows to compare one Cost Centre with another, hence provides information regarding the performance of each Cost / Profit Centre.

Examples of Department-wise Cost Centres have been illustrated in Purchase Process.

1.4.2 Cost Categories
Cost Category is a cluster of related cost centres. Cost Categories allows parallel allocation of the same transaction in multiple dimensions. In many cases, a single transaction may have to be allocated to more than one type of Cost Centre. Cost Categories enable allocating costs to parallel sets of Cost Centres i.e. the same amount can be allocated to more than one cost centre.
23

Chapter Title

Examples of Department-wise as well as Salesman-wise cost allocations have been illustrated in Sales Process.

Reports Category Summary: This report displays the summary of all the cost centres under a cost category. Cost Centre Break-up: This report displays Ledger and Group summary information for the selected cost centre. Ledger Break-up: This report displays the summary information of all Cost Centres for the selected Ledger. Group Break-up: This report displays the summary information of all Cost Centres for the selected Group. Cost Centre Classes Cost Centre Classes are used to automate Cost Centre allocations in transactions. You can use cost centre classes if you do not wish to manually allocate amounts to cost centres in each entry.

Select the Cost Centre Class as required on the voucher screen before making the voucher entry. You can also use cost centre classes along with Voucher Classes.

Example In Acme Corporation, the management has decided to make separate bills for each of the salespersons Suhas, John and Vinod so that for each sales invoice entered, the cost centre allocations are allocated to only one sales person to avoid any errors in the data entry while allocating the cost centres. Step 1: Create Cost Centre

24

Chapter Title

Go to Gateway of Tally > Accounts Info > Cost Centres > Create 2. Type Steve in the Name field 3. Select Primary in Under

Figure 1.20 Cost Centre Creation screen

4. Press Enter to Accept Similarly, create cost centres John and Vinod. Step 2: Define Cost Centre Classes 1. In F11: Accounting Features, set Use Pre-defined Cost Centre Allocations during Entry to Yes

Figure 1.21 Advanced Company Operations screen

2. Press Enter

25

23 Cost Category Summary screen 26 . Select Steve from List of Cost Centres 6.22 Auto Cost Allocations screen To view Cost Centre Summary Go to Gateway of Tally > Display > Statement of Accounts > Cost Centers > Category Summary Figure 1.Chapter Title 3. Repeat the steps to create more Class Names Figure 1. Select Primary Cost Category from List of categories 5. Type Steve in Class Name 4.

Ledger or Cost Centres. to substantiate your ability to repay loan in time. Tally allows creating different scenarios and getting What-if reports on this basis. if required. etc. where you should include Reversing Journal vouchers. That is. Reversing Journal Vouchers and optional voucher for any individual voucher type. Example of Budgets has been shown in Purchase process and Sales process 1.Chapter Title 1. You can compare the actual performance with budge created and also get variance report to ensure corrective measures. Tally’s Scenario Management is an effective management tool that enables different views of your information without actually putting the entries through the main books. we can envisage or imagine the scenario (or result) of doing it. A budget can provide guidelines for managing future investments and expenses. create different situation and view what-if scenarios.4.4 Scenario Management A scenario can be understood as an imagined sequence of events.4. Tally permits to optionally include Memorandum vouchers. To achieve the important managerial controls. In a business. Tally allows creating multiple Budgets for different purposes. This provides the ability to manipulate information.3 Budget Budget is a detailed plan of income and expenses expected over a certain period of time. 27 . if some action is carried out. there may be occasions when you may need reports on different hypotheses. The scenarios created can depict only financial effects and not inventory related effects. Mid-period Final Accounts can also be created by a scenario. the Bankers may insist for Projected Balance Sheet and Profit & Loss A/c for the rest of the financial year. Expenses budget. For example. For Example: Sales budget. Tally provides the flexible system of Budgets for Group. Every Business has its objectives and goals and must have an efficient mechanism to set its targets and appraisal of achievements in respect of the target. The actual as well as projected figures of accounts related information – can be viewed – by selectively including certain types of vouchers without affecting the books of accounts.

Projected Final Accounts: Enter the estimated figures in Journal vouchers and mark them as Optional (press Ctrl+L).g. 3. Create a scenario Sales Forecast and include Optional Sales Voucher but exclude Actuals. 2. Type Name for the scenario (For Example: H/Y Accounts) 2. Scenarios can be used as a management tool to obtain different views of information for accounts as well as inventory. Set Include Actuals to Yes 3. Create a scenario Projected FA where Optional Journal vouchers are included. Sales Forecast: You may enter anticipated Sales in SalesVoucher (e. Liabilities for Expenses. by selectively including provisional vouchers without affecting the base data. one for each month and mark the voucher as Optional to exclude from actual books of accounts). To create Scenarios Setup: In F11: Accounting Features.Chapter Title Few possible applications of Scenarios: 1. Set EXCLUDE Inventory Tracking Calculation to Yes 4. Now. set Use Reversing Journals & Optional Vouchers to Yes Go to Gateway of Tally > Accounts Info. if you generate Balance Sheet and Profit & Loss account. Reversing Journals and any Voucher marked as Optional are not posted in the actual books of accounts but stored in separate registers (may be accessed through Exception Register under Display menu). > Scenario > Create 1. Income accrued not accounted for. since Memorandum Vouchers. may be entered in Reversing Journal and in a Scenario H/ Yly Accounts ReversingJournal Vouchers may be included (besides the Actuals) to obtain Final Accounts including transactions entered in Reverse Journal vouchers. Later any of these vouchers can be converted into regular vouchers and included in the main books of accounts. the Projected Report is displayed as a new column. Select Reversing Journal in the Include 5. Half-Yearly Accounts: All the provisions like Depreciation. Select End of List in the Exclude column 28 .. You may compare the Scenario against actual Sales later.

for closing of books. Interest payables. should be taken into account. Reverse Journal dispenses with the need of entering transaction and reverse it the next day as it is specially designed and treated differently from other vouchers. Normally at year end. interest receivable etc should also be considered. outstanding expenses etc. these entries are made and it’s not a common practice to enter such transactions every quarter or halfyearly and then pass contra entry the next day.Chapter Title Figure 1..24 Scenario Creation screen Reversing Journal For half-yearly accounts. Similarly accrued income. Select Accounting Vouchers 29 . Let us enter a Reversing Journal for 6 months depreciation as under: Voucher Date 31-1-2009 Amount 20000 Applicable Upto 31-1-2009 Narration Depreciation for first 6 months of FY 2008-09 To Create Reversing Journal 1. the proportionate amount of depreciation.

Chapter Title

2. Press F10 for Reversing Journal 3. Press F2 and change date to 30/1/2009 4. Under Particular, select Depreciation for By 5. Type 20000 as Amount 6. Select Car for To 7. Type 30/1/2009 in Applicable Upto

In the ApplicableUptofield, enter the date till which the voucher would be included in scenario report. The voucher will be considered in reports till the ApplicableUptodate but not in reports extending beyond the date.

Reversing Journal screen is displayed as shown

Figure 1.25 Reversing Journal Creation

8. Press Enter to Accept

30

Chapter Title

Scenario Reports On creation of scenario, you can get report using the scenario. You can use Scenarios in most statements (but not for registers) where you get an option to create a NewColumn. At Type of Value to Show prompt, you will get list of scenarios (in addition to the Budgets). We show a report using the Bi-monthly Accounts Scenario created by us. Go to Gateway of Tally > Balance Sheet 1. Press Alt+C for New Column 2. Type the date From & To 3. Select H/Y Accounts for Types of Value to show 4. Set Show Variance to No

Figure 1.26 Balance Sheet Actuals Vs Scenario

1.5 Bank Reconciliation
Bank Reconciliation is the process of systematically comparing the balance as reported by the bank with the balance on the company’s books and explaining any differences. It is a report showing the name of each account, the balance as per the bank statement for each account plus the outstanding deposits for each account (not credited by the bank) less the outstanding cheques for each account (all cheques expended which have not yet been debited to the account per bank statement).

31

Chapter Title

All businesses account for cheque payments and collections on the day it is issued or sent for collection. The cheque however may not be processed on the same day. As a result, a company’s bank book balance does not tally with the Bank statement balance. To reconcile this, a business tracks causes the difference between these balances. Tally handles this by tracking bank dates – date on which a Bank Book voucher gets reflected in the Bank Statement by using reconcile option in the bank book, available bank dates can be set against corresponding vouchers.

Bank date can be set for a voucher and not for its components. So clubbing two or more cheques in a single payment voucher is not advisable. Receipt vouchers may have one or more instruments, if they are sent for collection by single pay-in-challan and banker has the practice of reflecting it as a whole.

After entering and accepting bank dates, Bank Reconciliation Statement can be availed with reconcile option. Items not reflected in the Bank Statement and reflected subsequent to the stipulated period will be listed out as causes of difference. Normally cheques issued but not encashed and cheques sent for collection but not collected during the stipulated period are listed as causes of difference. After taking them into account, the company’s bank book balance gets reconciled with the Bank statement balance. Charges made directly by bankers have to be incorporated in the books of accounts. Service charges, Periodical interests, Folio charges and Cheque book charges are some of the examples. These can be entered either through payment voucher or through journal voucher. (F12 Config - Enable Cash ledgers in journal). Bank dates already entered can be corrected or viewed by configuring the bank ledger to get reconciled vouchers also. This setting will arrange bank book vouchers in ascending order of their bank dates. With this order, bank vouchers can easily cross-checked with the bank statement. Bank Reconciliation option can also be initiated from any part of the books of accounts. Setting a date in Effective date for reconciliation field in the bank ledger alteration, will give this flexibility.

Bank reconciliation can be prepared for a ledger placed under Account Group Bank Accounts or Bank OD / OCC A/c only.

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4.2008 Particulars Opening Balance Ch.2008 20.4.4. 4563219 Next Gen Clg: 126789 Total 49920 49920 12500 8000 4500 Statement Period 1.4. Press F5 for Reconciliation To view Narration press F12 and set Format to Detailed. Select National Bank from List of Ledgers 3.2008 22.4. Show Narration also to Yes 33 .2008 30.Chapter Title Example Reconciliation for April month’s National bank book can be done as follows with the help of following bank statement: National Bank Date 1.2008 A/c : Acme Corporation Deposits Withdrawals Balance 0 Cr 8000 Cr 12500 Cr 37420 Dr 37420 Dr Steps to view Bank Reconciliation of National Bank 1. Go to Gateway of Tally > Display > Accounts Books > Ledger 2.2008 to 30.4. 9821250 Ch.

4. Press Ctrl+A to accept the Screen Shown below is the reconciliation statement for the month of April 08 and the balance gets reconciled with the bank statement.27 Bank Reconciliation Statement The above screen explains tracking of bank dates.Chapter Title Figure 1. Go to Gateway of Tally > Display > Accounts Books > Ledger 2. Select National Bank from List of Ledgers 3. 1. Press F5 for Reconciliation 34 .

1. which requires maintenance of exchange rates . follow the steps: Go to Gateway of Tally > Accounts Info.1 Creating Foreign Currency To enable the user to create foreign currencies.6 Forex Management Due to globalization. in multiple currencies. Tally provides the user with the flexibility of entering/altering exchange rate and re-calculate gain/loss due to the change. In such a scenario. Tally gives a simple solution for this complicated procedure. However. To create a new currency. The first step is to create the currency masters. they are liable to maintain their books of accounts in the home currency. you may enter the exchange rates or directly enter vouchers in foreign currency along with exchange rate. This leads to conversion of foreign currencies into home currency. Once the currencies are created. you may be concerned about the calculation of gain/loss due to exchange fluctuations.28 Reconciled Bank Book 1. > Currencies > Create 35 . Press F11 and set Allow Multi-Currency to Yes.6. Tally provides a option in F11: Features. business Organizations from different nations deal with one another and thus.Chapter Title Figure 1. Tally automatically calculates Forex Gain/ Loss.

It may be 3 (three) for some currencies like Dinar and 0 (zero) for Vietnamese Dong. Tally will prompt for the rate of exchange 36 . Number of decimal places may vary from one currency to another. the formal name plays an important role in identifying the currency.2 Voucher entry in Foreign Currency Once the currency is created. Normally. For Example. Show amounts in Millions is an option that can be set to Yes or No depending upon the nature of the currency. The currency creation screen is shown below: Figure 1. formal name. Here. one can assume it as Australian dollar or Singaporean dollar. In order to create an amount entry in foreign currency.6. Formal name will help you to specify/recognize a particular currency. When you accept such an amount. 2 (two) is accepted in the number of decimal places. to treat exports to the US. a currency has to be created with $ as its symbol and US Dollar as its formal name (you can also enter the letters USD instead of the symbol).29 Currency Creation screen 1. By looking at $.Chapter Title You will be required to enter the symbol. you can make voucher entries with amounts specified in that currency. number of decimal places in the creation screen. prefix the amount with symbol of that foreign currency.

Chapter Title of that currency with respect to the home/base currency.30 Forex Rate of Exchange screen 1.6. amount is automatically converted into base currency. press F12 in Day Book and set Show Forex Transactions to Yes. Tally gives you the flexibility of displaying forex details as additional information. 37 . the books of account and the reports are displayed in base currency. With rate of exchange as input. The Accounting Voucher creation screen (prompting for rate of exchange) is shown below: Figure 1. In order to view the forex details in the reports. Rates can be obtained from bankers or from print / visual / electronic media. However. The rate of exchange is stored in the data repository.3 Display books with/ in Foreign Currency Normally. which can be altered any time in future.

Chapter Title The F12 configuration screen is shown below: Figure 1.32 Day Book 38 . the Day Book appears as shown below: Figure 1.31 F12: Configuration screen After enabling the option in F12.

Chapter Title 1.4 Adjusting Forex gain/ loss The organisations that deal in multiple currencies are interested in knowing the forex gain/loss. Figure 1. 39 . Tally makes the calculation of forex gain/loss simple.e. whether it is fruitful or not.33 Voucher Type Class screen Create a ledger Forex Gain/Loss under indirect expenses or incomes (based on the past trend or future projections). Its analysis gives an insight into the deal i. follow the steps: Create a voucher class Forex under journal voucher type. In order to adjust it.6.

The steps are given below: 1. Select the concerned ledger (Naveen Traders. in this case) in particulars field 6. Press V to select Accounting Vouchers 2. Press F7 to create a journal 3. Press F2 to change the date 5. Forex gain/loss is automatically calculated and placed in the amount field The completed forex class journal voucher is shown below: 40 . Select the appropriate bill from the List of pending bills 7.Chapter Title Figure 1. Select Forex in class 4.34 Forex Gain/Loss Ledger Creation screen To Create a Forex class journal voucher Forex class journal voucher is created to adjust forex gain/loss.

Chapter Title Figure 1. it is shown in the Profit/Loss account.36 Profit & Loss A/c showing Forex Loss written off 41 .35 Forex Gain/Loss adjustment Journal Once the Forex gain/loss has been adjusted or accounted for. then the amount appears in the Balance Sheet. Figure 1. If it is not adjusted.

1.6. Profit & Loss A/c and Balance Sheet are collectively known as Final Accounts. For all the other currencies.Chapter Title 1. keep the ALT key pressed and type the numbers from the numeric pad with the Num Lock on. Details of all groups can also be obtained through configuration except for groups behaving like sub-ledgers. A Trial Balance can be shown with opening balance. initials can be used to create the currency symbol e.1 Trial Balance Tally shows group wise Trial Balance. Proceeds from train ticket cancellation may also be credited in travelling expenses itself. Trial Balance can also be shown ledger wise. Net transaction will show Debit side total after adjusting the credits. Trial Balance sums up the book of accounts. DM for Deutsche Mark (German Currency). Choosing transactions will give further liberty to restrict Net transaction (Net of Dr and Cr).7.5 ASCII values for Foreign Currencies There are certain symbols that are not found on the keyboard.7 Final Accounts The three financial accounting reports Trial Balance. Profit & Loss a/c and Balance Sheets are derived from Trial balance. 1. Sorting ledgers in ascending or descending order based on their names or amounts is also possible To view trial balance Go to Gateway of Tally > Display > Trial Balance 42 . The ASCII values of some of those symbols are given below: Currency Symbol ¢ £ ¥ ƒ € Formal Name Cent Pound Yen Franc Euro ASCII Value Alt + 155 Alt + 156 Alt + 157 Alt + 158 Alt + 0128 To get the currency symbol in Tally. transactions and closing balance or for any one of these. Net transactions will be useful while viewing group summary for Expenditure groups / Income Groups.g. Next level detail for a group can be exploded by pressing Shift+Enter. In such a case.

1. By default. Press Alt+F1 for detailed format Figure 1.Chapter Title 1. an additional line will be inserted at the end of the Trial Balance.7. To view Profit & Loss A/c in Vertical mode 1.37 Trial Balance If there is a difference in opening balance. it is in Horizontal Mode. Profit & Loss can be viewed horizontally as well as vertically. Press F12 and set Show Vertical Profit & Loss to Yes 43 .2 Profit & Loss A/c Profit and Loss account provides the details of all accounts along with the Net Credit & Debit profit/loss during a period.

such as FIFO.Chapter Title To view trial balance Go to Gateway of Tally > Profit & Loss A/c 1. Avg Price. and Hospitals etc. etc. To view Profit & Loss in different valuation methods. 44 . Press F12 and set Show percentages and Show with gross profit to No. Educational Institutions. NGOs. Normally non-trading concerns / service providers require Profit & Loss without gross profit. LIFO. You can toggle between Income / Expenditure Statement & Profit & Loss A/c by pressing F11 feature and set Income/Expense Stmt instead of P & L to Yes & No respectively. Std. Cost. Press Alt+F1 for detailed format Figure 1. This will be useful for nonprofit organizations such as Trusts.38 Profit & Loss A/c To view Profit & Loss without percentage & gross profit. Avg . Std.Cost. Price. Press F7 and select any of the Valuation Method from the list.

To view Balance Sheet 1. if the new number is set as 47.7. By using new number in scale factor. Vertical format. This is to cater to the users who get migrated from codified accounts to Tally. For example.3 Balance Sheet Balance Sheet is an itemized financial statement that lists a Company’s total assets.5.Chapter Title 1. the figures can be converted into a multiplication or division factor.475. Press Alt+F1 for detailed format Figure 1. rupees in tens.39 Balance Sheet 45 . Working capital is the difference between current assets and current liabilities. amounts shown on a balance sheet are the historic cost of items and not their current values.e. and capital at a given time. if new number is 0. Figures will get multiplied by 0. then the figures will be divided by 47. To view balance Sheet in Vertical mode press F12 and set Show Vertical Balance Sheet to Yes Balance Sheet also adapts horizontal format by default. percentages. stock valuation methods are some of the options available to configure Balance Sheet. liabilities. Profit & Loss a/c & Balance Sheet) can also be converted into required scale factor i. Generally. Though Tally is a codeless accounting software. Balance Sheet can be set to show working capital. thousands. All these three have the choice to display ledger’s names or alias names or both.5. it has the flexibility to have codes for ledgers. Figures of these three reports (Trial Balance. lakhs and so on.475. Go to Gateway of Tally > Balance Sheet 2. Alias Name is the option to enter codes.

Std. Std. where ratios are used expansion of business diversification raising additional working capital additional investment etc. ratios are one of the best tools to identify And compare centre wise profitability Centres that require attention in terms of additional investment.8 Management Reports & Functionalities 1. average. in general terminology. 46 . cost reduction. To view Balance Sheet with working capital. LIFO. Ratio Analysis is a way of expressing relationships between a firm’s financial numbers. Cost.Chapter Title To change the method of showing balance Sheet press F12 and set Method of Showing Balance Sheet to either Assets/Liabilities or Liabilities/Assets. Ratios give managers a tool to conduct comparison and trend analysis Ratios are used to effectively monitor and plan the following Overall financial health of the business Liquidity position Receivables collection Payables rescheduling Level of exposure to external borrowings Prospective investment levels Managerial decision making process At centre (unit/division) level.1 Ratio Analysis Ratio. Avg Price. human resources etc. You can view different valuation methods like (FIFO. is referred to as a quantitative relation between two numerical values. Press F12 and set Show Working Capital figures to Yes. Cost. The following are some of the management decision making areas. Ratios are most commonly used to analyze the financial and operational characteristics of a company. The most and least preferred customers based on their performance Ratios are effective management decision making tools. Price .8. etc) in the same way as Profit & Loss A/c 1.

40 Ratio Analysis Report 47 .Chapter Title To view Ratio Analysis 1. Go to Gateway of Tally > Ratio Analysis Figure 1.

This ratio is useful in planning future cash requirements iii. Return on working capital – is referred to as the percentage of net profit to working capital (current assets – current liabilities). This is a useful tool in identifying the extent of investment in stock and indicates Stock control measures whether to be taken in case of change in demand Procurement planning 1.8.2 Cash Flow A Cash Flow is a measure of a business’s financial health. a business can analyze the following: 48 . Return on Investment –is referred to as a percentage of net profit / capital + net profit. in identifying the order of profitability and making decisions such as increasing production capacity. Gross profit % – Gross Profit / total Turnover – indicates the percentage of profit earned from direct operations (manufacturing). It is a useful tool in identifying the level of deployment of funds with respect to sales. This is a useful tool in measuring returns expected of the project/product and plan additional capital infusion. The ideal ratio is 2 under normal business conditions. viii. Operating Cost – is referred to as the percentage of operating cost with respect to the total turnover – This ratio is useful in making decisions in the areas of cost control. It is defined as cash receipts minus cash payments over a given period of time. Working capital turnover ratio – indicates how effectively working capital is used in terms of turnover it can help to generate.Chapter Title The following ratios can be viewed in Tally i. Quick Ratio . ii.(Current Assets – Stock in Hand : Current Liabilities): which indicates the liquidity position of the enterprise. Net Profit % -Net Profit/ Total Turnover – indicates the percentage of net profit earned by the enterprise after considering all expenses of the enterprise. Receivables Turnover –is an analysis of debtor wise payment performance and a useful tool in identifying the most preferred and least preferred customers or agents and planning the receivables collection process. This is useful in identifying the overall profitability of the enterprise. Current Ratio .. cost reduction etc.(Current Assets: Current Liabilities): which indicates the solvency position of the enterprise. Debt Equity Ratio . ix. where an enterprise produces more than one product. This ratio is useful. Inventory turnover ratio –turnover / inventory – indicates the relationship of inventory with respect to sales. continuance of a product etc. increase in production capacity (subject to market demand) etc. iv. Through Tally. v.(Loans (Liabilities) : Capital + Net Profit): which indicates the level of exposure to external borrowings and is a useful tool in determining the options of raising additional capital internally or externally. vii. xi. x. vi.

Chapter Title Periodic cash flows Group & Ledger wise cash flows Periodic cash flow statements can be used by a business to effectively analyse and plan The current pattern of cash flow under various heads The timing and certainty of its future cash flows The availability of excess funds-the extent and tenor of such availability for short term investment. which require constant monitoring.41 Cash Flow Statement 49 . This is particularly useful for businesses such as Non Profit Organizations where receipts and payments statements need to be generated. To view Cash Flow Summary 1. Group & Ledger wise cash flow statements can be used to Identify major heads. Go to Gateway of Tally > Display > Cash/Fund Flow > Cash Flow Figure 1. Cash flow statements can also be used as receipts and payments statement. Analyze the pattern of inflow/outflow under a particular group/ account head for planning overall cash requirement.

thousands. name/ alias. millions. ten lakhs. Periodicity to use: 4 week month.Chapter Title To view Monthly/Quarterly cash flow statement press Alt+F5 Further Display can be configured through F12 Configuration i. weekly and yearly iv. alias only. Show average details: selecting yes option will display the average of the selected period’s cash inflow and outflow at the end of the statement. lakhs. daily. To view detailed Detailed/Condensed Press Alt+F1 Figure 1.42 Cash Flow Summary To view Daily flow / Break up Press F4 50 . name only ii. ten thousands. Appearance of names: alias / names. v. fortnightly. half yearly. Scale factor for values: crores. Show with Graph: selecting yes option will display the graph in terms of period selected. monthly. hundred iii. ten millions. quarterly.

i.43 Funds Flow Statement 2. Go to Gateway of Tally > Display > Cash/Fund Flow > Fund Flow Figure 1. Press Enter to get Funds flow Summary for the month 51 .8. source of funds and their application.e. Working Capital is the net difference between Current Assets & Current Liabilities Fund flow statements are useful tools to analyze The changes in the net assets Its financial structure Its solvency and liquidity Its operating performance Areas that require immediate attention Periodic fund flows Group wise and ledger wise fund flows Display of sources and application separately for each group enables a business to identify core areas that require immediate attention and take effective steps to address the issues. To view Funds Flow Summary 1.3 Funds Flow The Funds Flow depicts the Working Capital analysis of the company.Chapter Title 1. It gives details of the movement of funds in a business.

Press Alt+F2 and type (From: 1/5/2006 and in To: 31/5/2006) 52 .4 Exception Reports To view Negative Stock This report lists Stock Items for which the closing balance has turned negative. 1. Go to Gateway of Tally > Display > Exception Reports > Negative Stock 2.8.Chapter Title Figure 1.44 Funds Flow Summary 1.

All such ledgers.Chapter Title Figure 1. which are deemed to have debit / credit balances but are having credit / debit balances respectively (the reverse) are listed in this report. Go to Gateway of Tally > Display > Exception Reports > Negative Ledgers 53 . 1. For example.45 Negative Stock Report To view Negative Ledger This report lists ledger accounts having reverse balances than less balances than what they are deemed to be possessing. normally Asset or Expenses Type ledgers should have debit balance.

1. 54 . Select September Month and press Enter. Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers 2. Go to Gateway of Tally > Display > Exception Reports > Reversing Journals 2.47 Memorandum Vouchers To View Reversing Journals This report displays monthly summary of Reversing Journal vouchers showing numbers of vouchers in each month. 1.Chapter Title Figure 1. Select August Month Press Enter Figure 1.46 Negative Ledger Report To view Memorandum Vouchers This brings month wise summary of Memorandum Vouchers showing numbers of Vouchers in each month.

55 .Chapter Title Figure 1. To view Post Dated Vouchers To create a Post dated voucher Voucher Sales Date 20-1-09 (later than the current date) Activity Create a voucher on a date later than the current date and click the button Post-Dated on the button bar. Go to Gateway of Tally > Display > Exception Reports > Optional Vouchers Figure 1.48 Reversing Journal Vouchers To view Optional Vouchers 1.49 Optional Vouchers To make optional voucher in to regular voucher select the voucher by pressing Enter and then press Ctrl+L.

your query may read as under: <Type of Info> having <Particulars> <Range of Info> value (if any) <Type of Info> having <Particulars> <Range of Info> value (if any) and/or <Type of Info> having <Particulars> <Range of Info> value (if any) and/or (in case of further conditions) so on. You may specify compound conditions by selecting appropriate operators from the Conditionpop-up. Ctrl+F12 Value enables the user to specify Value to Calculate in Report In the query. In the button bar. You can also specify to retrieve reports meeting ANY of the conditions you specify by selecting OR operator. You can also combine your specification. subscription/ entrance fees paid to club or donations to political parties etc. a business may look for filtered Reports as per its specified condition.50 Post Dated Vouchers 1. In case of compound conditions. However. gift.8. 56 . Tally provides this option to specify Query criterion to retrieve filtered Reports based on specified Query Conditions. Alt+F12 Range enables to filter information displayed on monetary value. you get results that satisfy ALL the conditions you specify by selecting AND operator. you may find Alt+F12 Range or press Alt+F7 and Ctrl+F12 Value or press Ctrl+F7 to build up your query through a series of screens to specify your conditions. you may give a single condition or multiple conditions.20000 paid in Cash or transactions involving commission. at times. Thus.Chapter Title 1. Go to Gateway of Tally > Display > Exception Reports > Post Dated Vouchers Figure 1. For example. for Income Tax or Audit purpose a business may wish to list all payments exceeding Rs.5 Filters to Reports Tally retrieves numerous reports with varying contents & formats offering flexible configuration options.

99 and press Enter 57 . Select Cash from List of Ledger Accounts 2.Chapter Title Type of Info:-Items for this option is report specific. Select Voucher from Type of Info 4. To view Cash Ledger with Filter Go to Gateway of Tally > Display > Account Books > Ledger 1. Select Ledger Amount from particulars in Having field 5. Type 629. Following option appears at this pop-up depending on the Report: Accounts Groups Ledgers Vouchers Bills Voucher Types Inventory Stock Groups Stock Item Vouchers Locations Stock Category Voucher Type Options of Particulars and Range of Info pop-ups depends on the selection of the item at Type of Info And finally select the condition from the pop-up consisting of following options: End of List And Or Example To retrieve list of transactions of Rs. Press Alt+F12 for Range of Information in Report 3.3000 or more paid in Cash. Select Greater than from range of Info 6.

Select Name from particulars in With field 11. Select End of List from Condition 14. Type Cash Figure 1.51 Alt+F12: Range screen 13.Chapter Title 7. Select And from Condition 8. Select Vouchers from Type of Info 9. Select Ledgers from particulars in Having field 10. Again Select End of List from Condition The report will list only the voucher complying with the query condition. Select Containing from Range of Info 12. Figure 1.52 Cash Ledger display 58 .

you may build query as under: <Vouchers> having <Narration> containing “donation” to list all the vouchers where the narration contains the word “donation”. Press F12 and set Show High/Low details to Yes Figure 1. ‘gift’.Chapter Title Likewise. to retrieve vouchers containing keywords like ‘commission’.6 Highest / Lowest / Average Balances To view Highest. ‘subscription’. Select Global Traders from List of Ledgers and press F7 To view Average Balance 1. 1. Lowest and Average Balances in Ledger Voucher Monthly Summary. ‘donation’ etc. Go to Gateway of Tally > Display > Account Books > Ledger 2. Press F12 and set Show Average Details to Yes To view High/Low Balances 1.53 High Low Average screen 59 . 1.8.

Select Cash /Fund Flow 3. Select Cash Flow 4. Go to Gateway of Tally. Type 15/4/2008 in To (blank for end) 3. Select Base Currency for Currency 4. Select Display 2. Setup 1.Chapter Title The High / Low balance details are added after the Grand Totals. Press Alt+C again for New Column 60 . Type 1/4/2008 in From (blank for beginning) 2.8. Thus. 1. Press Alt+C for New Column In Column Details 1. Select any month and press Enter 5.7 Flexible Periods Accounting In Tally fixed Financial Period data of several years may be kept together in a single company and it is possible to obtain any report for any period (even of 5 years in case you have the data). you can get reports of a project spanned over a period of 5 years or the sales report of a customer for the last 3 years. Press Enter 5. press Alt+F2 to change date. whatever be your financial accounting year. From : 1/4/2008 and To : 31/3/ 2009 In the left top corner of the Gateway of Tally you can see the current date has changed from 1-42008 to 31-3-2009 For Example: To view comparative cash flow for the first 15 days of April and May 08 Go to Gateway of Tally 1.

Select Base Currency for Currency 4. Type 1/5/2008 in From (blank for beginning) 2. which allows the user to change to any other accounting or inventory report.54 Cash Flow Summary 1.Chapter Title In Column Details 1. Tally stores the history of reports traversed internally. Consider an example where you need to show following screens in the given order to the audience.8 Presentation Manager Tally has a classical menu interface. When you press Esc key you reach the previous report you were viewing. and this process continues till you reach Gateway of Tally. Press Enter Figure 1. Stock Summary Sales Register Trial Balance Profit & Loss a/c Balance Sheet 61 . Type 15/5/2008 in To (blank for end) 3. While doing so.8. This feature of Tally can be effectively used to present accounts in Tally to an audience with the help of a PC or an LCD projector connected to a PC. But it also provides buttons in a report.

Where percent- 62 . A business’s cost effectiveness can be derived by the percentage of cost of sales on sales. Totals of each column/side are taken as the base for calculating percentages of Trial Balance and Balance Sheet items.Chapter Title Ratio Analysis To arrive at the Stock Summary Report. Press F10 for Accounting Reports & select Profit & Loss from the list 5. Percentage plays a vital role in defining the financial statement. Profit & Loss A/c. Percentage can also be calculated on the first column of the report.9 Percentage based Reporting Businesses do analytical review of the financial statements. capital block in idle / excessive stock and so on. Press F10 for Accounting Reports & select Balance Sheet from the list 4.8. B Ganesh. percentages can be calculated either on the vertical totals or on the horizontal totals. 1. Analyzing the percentage of applications helps in reduction of working capital requirement. For example. Balance Sheet. Press F9 for Inventory Reports & select Stock Summary from the List In all the periodic summary reports (Monthly. While using columnar report. percentage of purchase or expenditure on sales. Press F10 for Accounting Reports & select Trial Balance from the list 6. Percentages based on vertical totals will enable him to view the percentage reported Trial Balance of two entities at a time. Percentage wise sources. weekly. Select Ratio Analysis from Gateway of Tally 3. current liabilities. Multi columnar Trial Balance with the percentage helps in inter / intra firm comparison. Gross Profit Ratio. Net Profit Ratio. Percentage based Balance Sheet will derive the contribution rate of each source and usage rate of each application. etc) Bar Graphs can be viewed at the bottom of the screen. 1. Proprietor of both Ganesh Enterprises and Ganesh Traders can compare his entities by using column and percentages. Launch Tally & Select the required Company 2. select the reports in the reverse order. quarterly. stock holding percentages are the benefits of percentage reported Profit & Loss A/c. will give an idea about the rate of borrowed capital / equity. fortnightly. Trial Balance are the reports that can be configured to show percentages. daily. Sales Accounts total will be the base for percentages of Profit & Loss A/c items.

Select Company in Repeat Using 3.55 Trial Balance 63 . From a Trial balance configured to show the percentages. Press Alt+N (Auto Repeat Columns) 2. Type Yes in Show Total Column 4. user can drill down upto ledger monthly summary along with percentages.Chapter Title age on Cross Totals. Set Type of % age to of Totals 7. Press F12 : Configure 5. Set Show Percentage to Yes 6. will show the total of every group of both entities and entity’s share in every group. To view Percentage based reporting Go to Gateway of Tally > Display > Trail Balance 1. Press Ctrl+A to generate the report Figure 1.

Lesson 2: Advanced Inventory Lesson Objectives At the end of this lesson. you will be able to: Classify the Stock items and get more flexibility in the reports Create Price List (s) and use these prices in the Invoice creation Configure Tally for generating following Stock Reports Stock Summary Movement Analysis Ageing Analysis Stock Query 1 .

In the reports pertaining to these stock items. For Example. in order to organize your stock items. He may also classify the same items on the basis of the type of medicines. reports related to stock etc. manufacture and sell..1 Classification of Stock Items Booking of the inventory transactions not only includes the accounts ledgers but also the stock items. stock valuation. Tally allows a parallel method to organize the Stock Items under Stock Group and Stock Categories and retrieve either report. To view all the stock items under the relevant stock groups and sub groups. Thus. such as: classify the stock items. Stock groups and stock categories may be viewed as different dimensions to classify the stock items. Stock Items are the actual items that are transacted (purchased. This offers great flexibility in reporting. We have already discussed about the basic features such as creation of stock item. price list and multiple price list etc.Advanced Inventory Introduction By now we are comfortable working with the inventory part in Tally. This will help him to offer an alternate item. stock group. This will help him to list stock items pertaining to a company and place orders with that company.e. manufactured or sold) and take part in any Inventory Voucher. A bookshop owner may prefer to classify books on the basis of subject. You create the stock items the company is dealing in i. author or publisher. you might require the list of stock items classified according to the dimension you follow or the dimension your client (to whom you want to show the report) follows. in case the desired item is not available in stock. follow the steps: Go to Gateway of Tally -> Display -> List of Accounts -> Stock Items (Ctrl+I) The List of Accounts screen is shown below: 2 . We shall now get into the depth of the Tally software and configure Tally for the advanced features for inventory. all the items that you purchase. 2. a medicine dealer may prefer to classify items on the basis of the manufacturer. re-order status. Consider another example of a bookshop. Tally provides you the facility to create stock groups and stock categories. re-order level.

based on the previous consumption during a specific period.2 Reorder Level Reorder Level is important for manufacturers or the assembling industry for timely procurement of materials to ensure there is no production loss due to non-availability of raw materials or components on time. the time required to deliver materials to the customer and the stock in hand to execute orders in the stipulated time. This level is normally derived based on past experience. Thus. The Reorder level figure may be based on historical data. the Reorder level takes into account the lead time taken by suppliers to deliver the ordered materials. Tally allows a facility to compute. Every business desires to execute its customer orders in time and also have sufficient stocks to serve them. In some businesses. the Organization should place an order with the vendor for supplies. 3 .1 List of Stock Items 2. In the same way.Advanced Inventory Figure 8. It may vary from trade to trade and even for item to item. Many vendors determine a minimum ordering quantity for accepting order for each item. the re-order level makes a balance between Stock-out & Overstocking. the procurement order is placed with vendor. which is the quantity when the stock for the item reaches that specified level.The Reorder level helps to place Purchase Order for proper quantity at the right time. a business can identify items for which timely orders are placed for proper servicing their customers. When the stock-in-hand reaches the Reorder level. The management determines the Reorder level for each item. yet avoid over-stocking. recent past consumption or sales trends. it is economical to buy a larger lot as compared to immediate requirement -you can specify such Minimum Ordering Quantity to achieve economies of scale. Therefore.

1 Assigning Reorder Level To Specify Reorder Level Quantity Setup 1 1. Set Allow Purchase Order Processing to Yes Setup2 1. 2. you can additionally compute Re-order / Minimum Order Qty based on consumption for last period & other parameters specific to your requirement. Press Ctrl+A to accept the screen 4 . In the Simple mode. Gateway of Tally-> F11: Inventory Features 2. In the Advanced mode. screen displays all Stock Items under the selected Group (Accessories) 3. Tally provides twin options . Select the Group (For example: Accessories).2. you can enter absolute quantity for re-order and Minimum Order Qty.Advanced Inventory In view of varied requirements. Go to Gateway of Tally > Inventory Info. > Reorder Levels 2.Simple and Advanced.2 Reorder Levels screen 4. Enter Re-Order Level Quantity and Minimum Order Quantity for each Item Figure 8.

Weeks and Years. Period Criteria 5 . Press Alt+R for the Advance Mode (or click Adv Reorder button) Figure 8. Select the Period from Periods pop-up. Select either Higher or Lower. Months. The following additional fields appears in the Advanced mode: Consumption for the last Enter the value of the period in number ( in terms of days / weeks / months or year) by selecting in the next field from Periods pop-up menu to get the consumption of the Stock Item for computing the Reorder quantity.3 Advanced Reorder Levels Screen 2.Advanced Inventory To Specify Reorder Level Quantity in Advance Mode 1. The options are: Days. Press Ctrl+A to accept the screen This will activate the Reorder Level entry in Advanced mode where Reorder level may be based on past consumption.

Select the Group (For example: Accessories) Figure 8.4 Reorder Status Report 6 .2 Reorder Status This report helps to take appropriate decisions for timely purchase of materials and provides all a ready and relevant information required for placement of a Purchase Order. click Adv Min.2. Qty button 2.Advanced Inventory To enter Minimum Order Qty in Advanced mode. 1. Go to Gateway of Tally > Display > Statements of Inventory > Reorder Status 2.

3 Multiple Price Levels In order to maintain price consistency. Each party is linked with the applicable price list for correct billing. To view Purchase Orders Pending report for a specific Item. As a requirement or strategy. 2. Order to be Placed: If Shortfall is less than the Minimum Order Quantity. Tally proposes Order to be Placed equal to Minimum Order Qty. a business may have quantity slab-wise pricing and/or discount. To view Reorder level report for a specific Item. select Primary from List of Group. select the Item and press Enter. select quantity from Purc Orders Pending and press Enter. To view Sale Orders Pending report for a specific Item. a multiple price list is essential. the selling price is entered in Stock Item master. select the item from Re-order Level and press Enter Shortfall: Computed as Net Available minus Reorder Level If the figure turns negative. In some cases. Tally provides two options to enter the selling price of the Stock Items. To view more information about the Stock item press Enter on the respective column in Inventory Reorder Status.Advanced Inventory To get reports for all the Stock Items. Multiple Price List: In case of different pricings for different customer segments. 7 . Standard Price: In case of a single price across all customer segments. the quantity is shown as a shortfall recommending for placement of order for the shortfall quantity to maintain reorder level. To view Item Movement Analysis report. To view Item Voucher Analysis report. To meet the diversified business needs. select quantity from Sales Orders Due and press Enter. Minimum Order Quantity: Displays Minimum Order Quantity as entered in the Re-Order Level screen. businesses maintain Price List(s) that ensures accuracy in invoices as the sale price in invoices are normally carried from the price list. a business may have a fixed price for an item for all customer segments or different pricings for the same item for different customer segments. select the supplier and press Enter. else equal to the Shortfall Quantity.

The F12 Configuration screen is shown below: 8 . the Stock Summary displays closing balances with details of quantity. To view a Stock Summary report: 1.e.Advanced Inventory 2. Go to Gateway of Tally > Stock Summary 2.1 Stock Summary The Stock Summary report gives a comprehensive report of all Stock Groups and items. Location and/or Batch. the Stock Summary is the lone report that appears directly in the Gateway of Tally menu. i.4. You can view the complete listing of all items till the lowest level. You can drill down to subsequent level to get finer details. The Stock Summary can be compared with the Trial Balance report..4 Reports 2. inward and outward and closing balance. Rate. Value. Considering its importance. For example to display Quantity. rate and value for the Stock Groups or Items. Press F12:Configure and configure the contents of the Report. 3. Press Alt+F1 to get detailed format The Stock Summary report is shown below: Figure 8.5 Stock Summary Screen By default.

6 F12: Configuration screen After the Configuration is set up.7 Stock Summary Report after Configuration 9 . the Stock Summary is as shown below: Figure 8.Advanced Inventory Figure 8.

Advanced Inventory

Profitability & Consumption Reporting In order to view the Gross Profit figures in the previous report (Stock Summary), press F7. The Value column shows the realized (i.e. Sales) value; Consumption shows Purchase or Production cost; and Gross Profit displays the excess amount of value over Consumption (loss is shown with minus symbol prefixed to amount); Percentage shows %-age of Profit over (Sales) value. Thus you can instantly get the Gross Profit for each Stock Group or Item. The Stock Summary with profitability and consumption columns is shown below:

Figure 8.8 Stock Summary Report Profitability and Consumption Columns

You can get for a Stock Item the group-wise or Item-wise gross profit earned. Stock Valuation By default, the value of stock is computed as per default valuation specified in the Stock Item master. To value stock on some other method, press Alt+C to get New Column screen. At method of Stock valuation, select the valuation method. The column details screen is shown below:

10

Advanced Inventory

Figure 8.9 All Valuation Methods screen

For example, if you wish to know the difference in stock when valued by the Default method and FIFO method, select FIFO in the Method of Stock Valuation field. You will get a comparative report. The method of Stock valuation selected appears as the column heading. The Stock Summary showing the comparison with the FIFO method is shown below:

Figure 8.10 Stock Summary showing comparison Default with FIFO

To view Stock valued on all valuation methods, press Alt+N to display the Auto Repeat Columns screen. Select Stock Valuation Methods in Repeat Using field. The columnar report will display valuation based on each valuation method.
11

Advanced Inventory

The Stock Summary with all the valuation methods is shown below:

Figure 8.11 Stock Summary with all valuation methods

Godown wise In order to view godown-wise break-up for each item in the Stock Summary. 1. Press F12: Configure 2. Set Expand all levels in Detailed Format to Yes 3. Press Alt+F1 to display report in detailed format. The godown-wise detailed Stock Summary is shown below:

12

Stock Group Analysis To view the Item Movement Analysis for a specific stock group: This report shows the details of inward and outward transactions for all the stock items of that group. This report displays the details of stock flow and their effective costs.g. Go to Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Group Analysis 2. Example: Transactions such as Goods sent but Bill not raised are not included in the reports.4. Select the Group from List of Groups (e.2 Movement Analysis The Movement Analysis reports show those inventory transactions for which accounting transactions have also been recorded. Accessories) 3.Advanced Inventory Figure 8. 1. 13 . It also helps to track the process-wise cost of production.12 Godown-wise Stock Summary 2. Press Alt+F1 to get a detailed format.

select Primary from List of Groups. The report also lists the Transfers Inward/Production and Transfers Outward/ Consumption.Advanced Inventory Figure 8.13 Movement Analysis To get report for all the Stock Item. Stock Item Analysis To display Item Movement Analysis for a specific stock item: This report screen displays the details of Movement Inward and Movement Outward with the movement values of the selected stock item. Go to Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Item Analysis 2. USB Pen Drives 64 MB) 14 . Select a Stock Item (e. 1.g.

15 .14 Item Movement Analysis The Effective Rate consists of Basic rate plus additional costs. In order to view the additional cost details.4.15 Item Voucher Analysis 2. highlight the voucher type under Movement Inward or Movement Outward and press Enter. This information helps the management to promptly decide about the action to be taken for the materials whose value is waning. This will display the Item Voucher Analysis for the particular stock item. Figure 8.Advanced Inventory Figure 8.3 Stock Ageing Analysis The Ageing Analysis report lists the age-wise break-up of inventory to display the old stocks. Tally gives its users the flexibility to define their own ageing slabs. Ageing Analysis helps to list out batch wise items that have already expired or may expire in the near future.

Figure 8. Select Primary from List of Groups 2. 1. Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis 2.Advanced Inventory To view the Ageing Analysis report 1. value and agewise break-up. Quantity. Select the Group for which ageing analysis is required. This report is displayed in a columnar format showing Item details.16 Stock Ageing Analysis To display the report for all Stock items. Press Hide Amounts button to hide the Value column 16 .

press Enter for the month you want the stock journal.Cost.17 Stock Ageing Analysis without values For getting the Item Monthly Summary report. For further drill down to Stock Journals of the Item. To get the value of the stock other than default method.Price.Advanced Inventory Figure 8. To define the ageing slab press F6.etc. 17 . press Enter in the Total Quantity Column of the Item. Avg.. If you want to view only the Quantity of the Item. press F7 and select from All Valuation Method for example Avg. press Hide Amount button or press Alt+A. FIFO.

18 Stock Query screen 3. Go to Gateway of Tally > Display > Statement of Inventory > Stock Query 2. Press F12: Configure 18 . Select the Item from List of Items (For example: CDROM Jackets) Figure 8. It also displays the Godown wise / batch wise detailed stock position. the Last Purchase Cost and Sale Price and the Name of Customer to whom last sold.4 Stock Query A Query is a comprehensive report for a selected stock item that displays all related information including details of other items in the same stock Group/Category in one screen.4.Advanced Inventory You may define Ageing Style in four different ways. To view a Stock Query Report 1. 2.

for displaying the remarks entered in the Stock Item master. Figure 8. 5. for displaying all items under the same Stock Group. Set Show Remarks of the item to Yes.Advanced Inventory 4. Set Show Related Items of same Group to Yes.19 Stock Query — All items of the Group 19 .

you will be able to Understand the commands in Tally Configuration File Configure Tally for consolidating a Group of Companies Activate Security Control Create different types of security levels and define their level of usage Create different users under appropriate security levels Activate Tally Audit Track changes in Ledgers Track changes in Vouchers Encrypt a Company data Decrypt a Company data Configure Tally for Data Management Backup & Restore Rewriting Books Export & Import of Data Splitting of Company Data ODBC 83 .Lesson 3: Administration Lesson Objectives By the end of this lesson.

1 Tally. If a Directory name is only provided without the path details. TallyLock Syntax: TallyLock= [IP Address or PC Name] or None This command is applicable for users having a Hardware Lock (Dongle) version of Tally on the Server where the lock is attached to the parallel port.” (semicolon) are actually comments mentioned. The topics covered under this section are technically essential and need to be understood in detail and should be carried out under caution. You cannot specify multiple Directory paths in the configuration file. but space sensitive in the data & file path naming specifications. Tally then assumes that the Directory has to be created in its own Application Directory and creates it as if it did not exist. TallyLicense Syntax: TallyLicense : <Type> This command is required for the Softlock version of Tally.ini . All the commands in this file are case insensitive.Tally Configuration File The Administrator needs to understand the various commands that are or can be mentioned in this file. Similarly the data in Tally needs to be administered. monitored and explored for usage in other applications. 3. Example Tallylock=localhost For the client on the network TallyLock=<IPAddressofthePCwherethelockisattached>or TallyLock=<nameofthePCwherelockisattached> TouseTallyinEducationalVersion TallyLock=None 84 . The type of license needs to be specified here. All the statements starting with “. Data Syntax: Data=[Data path] You have to specify the data path in the command mentioned above. The current available value for this command is “Connect”.Administration Introduction System Administration is a collection of tasks and responsibilities carried out by a System Administrator to set up the system and keep it in good running order.

Administration Default Companies Syntax: Default Companies = [Logical Value] This command helps the Administrator / user to enable or disable the loading of a Company or Companies with the help of the “Load” command. The Companies will be loaded as per the sequence given. Language Path Syntax:Langpath=[Language Path] You have to specify the Language path with the command mentioned above. then Tally assumes that the Directory exists in its Application Directory and creates it as if it did not exist.g. all “Load” commands will be ignored.dat (F12:Configuration settings file) in this path. e. If a Directory name is provided without the path details. If this is set to No. Example: TDL= tdlfile. You cannot specify multiple directory paths in the configuration file. You may omit the initial zeroes in the number. if the Company number is 0001 then you may specify Load=1. then the path specified in the configuration file for this command is wrong or non-existent. if any.1 [This command should be included if and only if Tally application is customised] Config Syntax: Config= [Configuration Path] Tally saves the Tallysav. You can give as many Load statements as you want in the Configuration file. in the User TDL field. Load Syntax: Load= [Company Number] The number of the Company to be loaded needs to be specified here. if any. User TDL Syntax: User TDL=[Logical Value] You can specify the name or path of the TCP(s) (Tally Compliant Product). Color Syntax: Color= [Logical Value] 85 . If you realise that the settings you had done are not saved.

e. 86 . The concept is simple yet so powerful that you can consolidate the accounts of any number of companies at any time. The information available in the group company is limited to information up to the ledger level.Administration If the value for this command is set to NO. The Management or shareholders would first like to know the performance of the group as a whole followed by the performance of individual constituent companies. as well as keep them separate at the same time. then the Tally screens are shown in grey scale and not in the default colours of Tally. The voucher level information cannot be pulled from the group company accounts. Figure 9. Tally makes consolidation of final accounts of the group. an easy task. vouchers of a ledger common to all the constituent companies cannot be consolidated & seen in the group company. i. requires consolidation of accounts of its group companies to present its total financial position.1 Tally.ini file 3.2 Consolidation A business group consisting of constituent companies.

Press Alt + F3 and select Create Group Company 5. Acme Apparels from List of Companies displayed.No. Acme Ltd) 8.) 7. E-Mail. 1. Acme Corporation & Acme Apparels can be the Members of Group Company. In Members field. To view the details of Acme Corporation and Acme Apparels companies in the Balance Sheet report. Go to Gateway of Tally 2. Press Alt + C and select the first company. Specify details like. 1. 87 . select the Company you want to group from List of Companies(For example. Type the name of the Group Company (For Example.Administration Consider Acme Corporation and Acme Apparels as constitiuent comapnies of Acme Ltd. Type other relevant details (Mailing Name. 2. Press Alt + F3 and select the first company Acme Corporation 3. To Create Group Company To create a Group Company you should select a minimum of two companies. Go to Gateway of Tally > Balance Sheet The Balance Sheet is displayed with the consolidated details of the accounts of both constituent companies. Currency and the method of stock valuation. From and To dates. PAN/ Income-Tax No. 1. Steps The steps to create a group company are outlined here. Press Enter to accept the screen Consolidated Balance Sheet You must select the Group Company (Acme Ltd) to view the Consolidated Balance Sheet of both the companies under it. Acme Ltd) in the Company Creation Screen 6. Press Alt + F3 and select the second company Acme Apparels 4. Address. VAT Regn. Press Alt + C and select the second company. Acme Corporation from List of Companies.

Press Ctrl+A to accept the screen Name of Administrator & Password field can be Alphanumeric Case sensitive Special Characters not entertained Maximum of 15 characters Entries in the Password field will be displayed as asterisks. Type John in the Name of Administrator field 8. menu 4. Type AC2004 in the Password and in the Repeat fields 9.3. 88 . For example. The Administrator defines the different levels of usage and creates users under the appropriate types of usage. Set No to the field Use Tally Audit Features? 12. Select the Company for which a security control has to be activated – i. Acme Corporation 2. Balance Sheet and Fund Flow statements.Administration 3.1 Security Control A security control is a control measure. Select Acme Corporation from List of Companies 5.3 Security 3.e. It helps in preventing unauthorised access and usage of data. Activating Security Control The Security Control is activated while creating a new Company or by modifying it. Every authorised user would be provided an access to the company data with a unique user name and password. Step 1: To Create Security Control for the Company 1. Press Alt + F3 in the Gateway of Tally 3. Select Alter in the Company Info. They will not be allowed to access certain financial reports like Profit & Loss A/c. Press Enter 11. Press Enter until you reach the field Use Security Control 6. A message Forgetting your password will render your data unusable displays 10. Data Entry level users are restricted to voucher entry alone. In case of an existing Company. Set Use Security Control to Yes 7. The Administrator has the ultimate responsibility to regulate the creation of usres and their control.

Type John in the Name of User field and AC2004 in Password (if any) field. Select Acme Corporation again from the Company Info.Administration Figure 9.3 Company Login screen 89 . Menu 3.2 Company Alteration screen Step 2: To verify if the Security Control created for the Company is correct or not 1. Figure 9. Press Alt + F1 to shut the Acme Corporation Company 2. The Company Login screen is displayed 4.

Press Alt + F3 in Gateway of Tally 3. To Create a Type of Usage: 1. Example Acme Corporation proposes to restrict its Accounts Department users from altering Accounts Masters while allowing them to use all the other options. A Owner has all the rights except the creation of Security Control and alteration of the Company details. Type Accounts and press Enter 7. Select Acme Corporation by typing Name of user as John and Password as AC2004 2. Press Enter to move to the Allow the following Facilities column 14. Select Alter from Type of Access in the Disallow the following Facilities column 11. Select End of List from Type of Access 15. Press Enter in the Use Basic Facilities of field 8. screen 4. Select Types of Security in the Security Control screen 5. Select Security Control in the Company info. Press Enter in the Cut-off date for Back Dated vouchers field 10. a user can create any number of usages by using basic facilities of Owner with stipulated restrictions. Owner and Data Entry. Select Accounts Masters from List of Reports 12. Besides these. Press Enter to move to the Security Levels screen 90 . set the field ‘Use Security Control’ to Yes at the Company Creation Screen itself. Data Entry uses the basic facilities of Owner with some restrictions as specified by the user or by default. Press Down arrow key at the Data Entry field to move the cursor to the next field 6. Press Enter in the Days allowed for Back Dated vouchers field 9. Tally has two types of security levels viz.Administration If you are creating a new company. Select End of List from Type of Access 13. Security Level By default.

4 Security Level Definition screen Figure 9. the following are the other types of access that can be restricted while creating / altering a type of usage: 91 .5 Security Levels screen 16. Besides altering. Figure 9.Administration The Security Levels screen is displayed as shown below. Press Ctrl+A to accept the screen.

6 Other Types of Access Screen Besides Accounts Masters.Administration Figure 9. Figure 9.7 Other Reports for Access Screen 92 . the following are some of the reports for which access can be restricted.

Select Acme Corporation by typing Name of user as John and Password as AC2004 2. Select Users and Passwords in the Security Control screen 5. A Manager has full rights but others but is not allowed to alter the Accounts Masters. To create Users and their passwords: 1. Select Security Control in the Company Info. Press Enter to accept the screen. Enter the following details for List of users in the Company dialog window.Administration Users and Passwords Throgh this field option. screen 4. Press Alt + F3 in Gateway of Tally 3. you can assign a name and password for an user under appropriate type of usage. 93 . Example: Let us assume that the Accounts Department has a Manager. a Cashier and an Accountant.8 List of Users for Company 6. Name of User Acct Manager Accountant Cashier Password( if any) Am Acc Cr Security Level Owner Accounts Accounts Figure 9.

. ledgers and vouchers are checked and accepted periodically. screen 3. Select Acme Corporation from List of Companies in the Select Company screen 4.9 Accounts Info Menu 3.Administration Logging in as a User 1. Tally Audit is a checking tool available to the Administrator. Figure 9. Tally Auditt feature should be enabled while creating the Company and its Security levels. Therefore changes to 94 . Type Accountant in the Name of User field and Acc in the Password (if any) field.3. the Alter option under Accounts info > Ledgers screen is deactivated. Press Alt + F1 to shut the Company. Through this feature. 2. However changes to narration and reference will not be considered as material changes. this change is listed with the user’s name with entry and alterations done. Tally tracks all changes made to vouchers that are more than 30 days old. Select Select Company in the Company Info.2 Tally Audit All businesses periodically audit their books of accounts personally or through the auditor. This check is to ensure correctness and to monitor the entries. As the users of Accounts Department are restricted from altering the Accounts Masters. Press Enter to move to the Company Login screen 5. Only a user designated as an Auditor or the Administrator can view the audit list and act upon it. A periodical checking leads to tracking of unauthorised changes to the accepted entries. if a user makes a few material changes in an accepted voucher after Tally Audit. whereas change in the amount allotted or change in the name of the ledger will attract attention of the Tally Audit feature. For example.

Select Acme Corporation from the drop-down List of Companies displayed 5. Press Alt + F3 from Gateway of Tally 3. Select Acme Corporation and login throgh the administrative user name & password 2.Administration vouchers that are less than 30 days old are not reported.Tally Audit Audit of Ledgers The audit of the ledgers involves checking them for opening balance brought forward & any intentional changes after checking. An Auditor can use this facility by logging in as an Administrator. Set Yes to Use Tally Audit Features 7. Press Enter untill you reach the field Use Tally Audit Features? 6. yet can track the changes made after the last audit. The Auditor can perform his tasks periodically. A change includes insertion of new transactions or accounts. To Activate Tally Audit 1. Select Alter from Company Info menu 4. Press Ctrl + A to accept the screen Figure 9. To Audit Ledgers 95 . The advantage of this feature is that the physical presence of the auditor is not required.10 Company Alteration screen . This is to allow adequate time to correct mistakes. A regular backup is required after every backup to track the changes made if any.

correct necessary entries and accept the screen. press Ctrl + A 5. Go to Gateway of Tally > Display > Statements of Accounts > Tally Audit > Ledgers 2. Highlight the ledger name that is to be audited 3.11 Tally Audit listing . else. Figure 9. 96 . Press Enter to drill-down further to view the Voucher level information to correct the ledger if any 4.Administration 1. it is easy to track it even it is changed/modified. Press F7 button on the button bar to accept the changes. Press F6 to bring back all the ledgers irrespective of acceptance. If there are any corrections to be done. Tally Audit Listing Screen is displayed as shown below. it will not be shown in the list of new / modified ledgers. Since Tally Audit allots ID number for every ledger. Press Alt + F7 to accept all ledgers at a time.Ledgers After accepting a ledger.

Set Show Inventory Details to Yes 4. Press Alt + F1 to display List of New/Modified Vouchers 4. Gateway of Tally->F12 :Configure->Voucher Entry 2. Press F12:Configure 5.Administration Audit of Vouchers The audit of vouchers involves checking its accuracy and other necessary details. Setup 1. Set Show Bill. Set Show Entered/Altered by to Yes Figure 9.wise Details to Yes To Audit vouchers: 1. Press Alt + F2 to change the period and type 1/4/2008 in the From and 30/4/2008 in the To fields 3.12 Tally Audit Listing .Vouchers 97 . Set Show Cost Centre Details to No 3. Go to Gateway of Tally > Display > Statements of Accounts > Tally Audit > Vouchers 2.

press Alt + F7 An accepted voucher/s will be removed from the list displayed. Then list appears after acceptance as shown below: Figure 9. Tracking Changes Tally audit highlights if any accepted vouchers modified / deleted.Accepted Vouchers 98 . In this case. assume that two Sales Vouchers are accepted by Accountant. press F7 To accept all vouchers at one go. The Voucher Nos are 1 &2 entered by Unknown.13 Tally Audit Listing .Administration To accept vouchers one by one. Please make sure to check the voucher to be audited while selecting it as there is no key to bring back the accepted voucher/s.

3. In order to distinguish the modified vouchers from the new vouchers. Operations on Tally Vault data will be slower by at least 40%. The Name of the company is also displayed in the encrypted mode so as to have a better privacy.14 Tally Audit Listing .Altered Vouchers 3. While Tally vaulting a company. Tally shows them in italics font along with Altered by username and On Date. it is displayed in Italics as shown with the username. Tally vault is one of the most secured means of the information storage. If the Accountant has changed the amount in the Payment Vr 2 from 800 to 900.Administration The two vouchers are removed after acceptance from the Tally Audit Listing as shown above. data is stored in an encrypted format. Vaulting a Company Data To Vault a Company Data: 1. Especially. Select Acme Corporation 99 . The company data where this option is exercised is left untouched and instead a new company is created with the Tally Vaulted data. the information concerned with Finance and Taxation. Figure 9.3 Tally Vault Businesses may need to maintain confidentiality and secrecy of their financial data.

16 List of Companies 1. screen 4.Administration 2. A message is shown with the company number on completion of encryption. Remembering the number shown in this message will help access the encrypted / vaulted company data. Select Change TallyVault in the Company Info. To access the vaulted company. 100 . Press Alt + F1 to shut the original data. Users will have the right to decide whether to keep or remove it. Type Accorp in the Repeat New Password field Figure 9.e. Removing the original data from storage is advisable. select the company by identifying the number allotted to it i. Tally will keep the original data also in the storage.15 Change TallyVault screen 6. Type the TallyVault password. Press Y or Enter to accept the screen The encrypted company data is created as a new Company. Type Accorp in the New Password field 5. Press Alt+F3 in Gateway of Tally 3. 10001 ( for example) Figure 9.

17 TallyVault Password screen If the company has the security control feature enabled. Press Alt + F3 in Gateway of Tally 3. Decrypting encrypted Company Data 1.Administration Figure 9. Select the Tallyvaulted company and type vault password. screen 4. 2. Type the existing password in the Current Password field 6. Type the new password in the New Password field 7. Select Change Tally Vault in the Company Info. then Company Login screen will follow the Vault screen. Repeat the new password at the Repeat New Password field Change TallyVault screen will be displayed as shown below prompting for the user’s reply for decryption. 101 . Select Acme Corporation from List of Companies 5.

Batches.4 Data Management Data Administration has assumed its own importance in the smooth sailing of any business. Bills. Each of the masters or features when enabled will add another dimension to already existing data.Administration Figure 9. Press Y or Enter to accept the screen The decrypted data is created as a new company. Stock Items. Currency. Unless this may lead to confusion in updating books. Orders etc. Stock Categories. Cost Centres. 3. 102 . A message along with new company number is shown on completion of decryption. Press Alt + F1 to shut the encrypted data. Cost Categories. It is better to keep any one of these data at a time. The Administrator has to remember that working speed of Tally reduces not on the volume of transactions but on the volume of masters such as Account Groups. The Administrator should minimize the use of each of the above mentioned masters. Account Ledgers.18 Change TallyVault Decrypt Screen 8. Price Lists. Stock Groups. Budgets. Lesser the number of masters created and features enabled will make sure Tally works in a much faster way. Tracking Numbers. Tally will keep the encrypted data also in the storage. Press Any key to give the consent and proceed further 9. Godowns.

Floppy disks are not dependable. hence should not be used unless there is no other medium available.19 Backup Companies on Disk screen While restoring the backed up data. Select Backup from the Company Info. a backup data has to be maintained. Press Alt + F3 from Gateway of Tally 2. Pen drives. Hard disks.1 Backup & Restore Data once lost cannot be reproduced. The possible storage media on which data backup can be taken directly and stored are Floppy disks. To address this concern.4. Of the storage mediums mentioned above. CDRW. Hence creating data backup on a day to day basis is strongly recommended. Figure 9. Tally has a flexible backup mechanism where in you can take a backup of the data from virtually any storage medium into any other medium. Typically while taking data backup. 103 .Administration 3. you should not overwrite the recent backup taken. CDR. Menu The Backup Screen is displayed as shown below. Tape drives etc. great care should be exercised. Taking a Backup 1. Network drives.

Figure 9.Administration In Backup screen. Hence. Source field is followed by Destination field. Tally automatically places the folder name in Source to where the earlier backup was taken. Care should be taken and the correct path should be typed in Source field.20 Restore companies on Disk 104 . In the case of Restore screen. The Restore Screen is displayed as shown. Destination field is followed by the Source field. you may unknowingly restore the old data.

1. email programs etc. Example:.In the Trial Balance report. WordPad. namely. Change the file format to ASCII 4.2 Export & Import of Data Export of Data The export of data is required by the companies to carry Tally’s data into other systems like spreadsheets and databases or to send as an attachment by email.CSV.For example. The data in this file will also be a in readable format for all text editing applications like Notepad. Data can be exported from Tally in four different formats.. ASCII (American Standard Code for Information Interchange) HTML (Hyper Text Markup Language) SDF (Standard Data Format) XML (Extensible Markup Language) ASCII The data in this format in every line is separated by a Comma. Keep the Langauge to Default ( All Languages) 3. Press Enter in all the other fields 105 .Administration 3. especially when the extension of the file is . you will see the Excel icon allotted for this file when you list the file in Windows File browser.CSV (Comma Separated Values).CSV 5. Trialbal.4. Press Alt + E 2. This format is readable by Microsoft Excel directly. if you export Trial Balance from Tally in a file viz. Change the output file name extension to Trialbal.

21 Exporting Trial Balance Figure 9. 106 .Administration Figure 9.csv can be found in the directory where Tally is installed.22 Exported Trial Balance The Exported file Trialbal.

107 . Being the short form of Extensible Mark-up Language.Administration HTML Data in this format appears just as shown in Tally’s reports. Modify with new Data: This option is selected when the opening balances existing in Tally require to be overwritten to that existing in the data being imported.But the data is capable of being imported by other XML compatible systems. The destination system would need a little re-formatting of XSLT (XML Style Sheets) (beyond the purview of this document) based on the Tally Styles and can then import the data. three types of treatment are given to the data being imported. hence they will be overwritten by the balances in the data being imported. XML An XML output has an XML envelope and is formatted with XML tags to enable importing of data into other systems. Import of Masters While importing masters in Tally. Using XML. However. with the colours & the formatting almost intact. Tally enables you to exchange information even with non-Tally applications. This language is fast emerging as the de-facto standard for information exchange all over the world and with it Tally gives you the means to collaborate with others and share information like never before. Import of Data Import of data will cover only import of data in Tally’s importable format and not data from other systems. Tally can import Master & Transaction data in XML format. an another Tally application can import the XML data directly using the Import option without any re-formatting. This option can also be selected if the opening balances of all the masters existing in Tally are Zero. Therefore a Tally invoice in XML format can be imported by another Tally application system without difficulty thereby reducing the data entry time and subsequent errors if any. XML is an extension of HTML. Data in this format is used to upload on the websites or can be sent as an attachment to clients / suppliers. Combine Opening Balances: This option is required when data is imported from different branches and the opening balances of the masters need to be consolidated. You can use Microsoft Excel also to view the report / data generated in this format. Ignore duplicates: This option needs to be selected when new masters are being imported along with the masters already existing in Tally.

that too only in XML format. Type 1-09-2008 in the Split from field 108 . Press P (Select SPlit Company Data) 3. However. hence additional treatment as existing while import of masters is not provided. Only Masters & transactions can be imported back in Tally. The format permissible while importing transactions is XML .Administration However not all data that is exportable is importable back in Tally. a business may not prefer to keep previous years data. but also causes system overload reducing the working speed in case the data volume is substantial. Go to Gateway of Tally > Alt + F3 2. It keeps the current year or just preceding year’s data. the existing transactions can not be altered by default. Import of Transactions While importing transactions. To split data in Tally 1. period-less accounting. In Split Company Data screen. Once all tax assessments are completed. Tally allows splitting a company’s data into two financial periods. Keeping all the data in a central data file poses danger of exposure to previous year’s data. i. Splitting of Company Data A business can maintain data in Tally for year after year to get reports spanning over multiple years. This eliminates the need to carry balances from previous year to New Year and repeat the same as and when any modification is carried out in previous year’s data. select the Company name from the drop-down list of Companies displayed 4.e. thus in effect creates two new companies with data for two periods while keeping the original company data intact. a business need not refer to the old data.

24 Split Company Confirmation screen 109 .23 Split Company screen 5.Administration Figure 9. Confirmation to Split Figure 9. Press Enter to accept the screen Splitting may take some time. a progress bar is displayed as the operation is being carried out.

MS Office should be installed with MS Query Module enabled. Type Yes at the Split? Yes or No to confirm splitting of company data. it may be due to a feature that was enabled and later on disabled.Administration 6.g Mailing Labels. contact Tally Solutions. If you find errors while splitting the data. you can do so by pressing Alt + D in alteration mode. Splitting will take some time depending on the volume of data present in the company. To Use ODBC in Tally.EXE runs separately. ODBC is most commonly used to connect to client/server databases. the bottom portion of the Tally screen should show ODBCServer in the portion where Calculator is displayed. Reminder Letters etc. a progress bar is displayed while the the operation is being carried out. Visual FoxPro etc.4. Finally. Now. 3. ORACLE. Godowns if were enabled and later disabled after some data entry may give rise to problems while splitting the data. or your dealer for help. such as Microsoft SQL Server. But make sure to take multiple Backups before doing so. Features like Tally Audit. e. two new companies will be created retaining the original. text files. 110 . and Excel worksheet files through ODBC drivers. To pull data from Tally. Create Profit & Loss A/c in MS Excel using data from Tally. The applications can be Create documents in MS Word picking data from Tally. Invitations. This may not be visible in case another instance of the same Tally.3 ODBC ( Only for Microsoft -Windows) ODBC is an abbreviation for the Open Database Connectivity API (Application Program Interface). Bank Reconciliation. if you wish to delete the original company or the first split company. Create Profit & Loss A/c using ODBC ODBC can be used to pull data from Tally to ODBC compatible software like MS Excel. Date of Splitting the company is suffixed for identification. a set of functions that provide access to a client-server Relational Database Management System [ RDBMS ]. Cost Centres. In case of errors. desktop database files. MS Word etc.

Open an Excel Workbook 3. 1.25 Database Query 4. Select Data > Import External Data > New Data Base Query Figure 9. Select Tally ODBC from Data Source screen and press OK Figure 9.26 Choose Data Source screen 5. Launch Tally and Select Acme Corporation 2.Administration Create Profit & Loss A/c in MS Excel using data from Tally and refresh data whenever there is a change in Tally Data. Select Ledger from Query Wizard to get data from all ledger masters created in Acme Corporation. 111 .

Double click Ledger and Select ‘$_Closing Balance’.28 Query Wizard .Administration Figure 9. 112 . ‘$Parent’ one by one and arrange them in the following order in ‘Columns in your query’ and press next: (This is to capture relevant information from each ledger) Figure 9.27 Query Wizard — Choose Columns screen 6.Choose Columns Screen 7. Select ‘$_ClosingBalance’ and set is Not Null as condition and press Next. ‘$Name’. This will filter ledgers that have closing balance other than zero.

30 Query Wizard — Sort Order 9.29 Query Wizard — Filter Data screen 8. The following screen will appear wherein check whether Return Data to Microsoft Excel is marked and press Finish 113 . And press Next.Administration Figure 9. Figure 9. Select ‘$Parent’ and ‘$Name’ one by one to arrange captured ledgers in their groups and names’ order.

rename the sheet as Data. click that cell or leave it as such and then press OK.32 Import Data Screen 11. 114 .Administration Figure 9. After data gets captured from Tally.31 Query Wizard — Finish screen 10. If data is to be saved in any other cell except A1. Figure 9.

115 . Create format of Profit & Loss A/c as desired and capture name of ledgers and their balances by referring cell address from ‘Data’ sheet.Administration Figure 9. Select next sheet and name it as ‘P&L Acc’.33 Data in Excel 12.

Administration Figure 9.34 Profit & Loss Account in Excel 13. Figure 9. tick Refresh data on file open by selecting Data > Import External Data > Data Range Properties. Before saving the file. Save the file with name ‘P&L Acc’.35 External Data Range Properties screen 116 .

4.Administration 3. $Parent. If you wish to find a ledger with a keyword anywhere in the name. especially if the ledger does not have any opening balance not any transaction against it. $ClosingBalance from Ledger order by $Parent Select $Name from Ledger where $Name contains “Acme” Select $Name from ODBCTABLES 117 . Sr. This can be used as a good auditing tool while auditing accounts. The syntax of the Select command is as follows Select {Method Names} from {Table Name} [Where {condition}] [order by {Expression}] The table names and methods can be procured from tables as shown in the ODBC interface of MS Excel or MS Word etc. This facility acts as a powerful query for Tally. then it is not possible to find it other than with the SQL command.4 SQL server within Tally Structured Query Language command (Select) can be issued within Tally for the tables exposed by Tally to ODBC. No 1 2 3 4 5 6 Some sample queries are Select * from Ledger Name Ledger Groups StockItem StockGroup Godown/Location CompanyVouchers Particulars Ledger Master Group Master Item Master Stock Group Master Godown/Location Master Vouchers for the current day Select $Name.

Lesson 4: Data Synchronisation Lesson Objectives On completion of this lesson. you will be familiar with Synchronizing using TallyLink Server Synchronizing using IP Address Configuring for Sychronization Synchronizing Back-dated Vouchers 118 .

all the data of masters and transactions from the Client company (Branch) are copied to the Server (Head Office) and all the similar data from the Server are copied to the Client. 119 . The need for having the latest updates readily available at each location. i.e. It enables the branch offices to send data to the head office and vice versa. Data Synchronization refers to a process wherein data is replicated between two or more locations. There is a need to update accounting and inventory information at all locations to ensure that the business runs efficiently and successfully. over the Internet or a private network. Advantages of Data Synchronisation The highlights of Tally Data Synchronization are: Simple.Data Synchronisation 4. The computer which has the data that is to be synchronized with the Client's data is the Server and it must have a Multi-User License. The computer where Data Synchronization is initiated is termed as the Client and could have a Single-User Tally License. Synchronization using TallyLink Server or a private network environment. Adaptable to an occasionally connected environment.Net Server 2. Simple installation and set-up. A private network Tally. Data Synchronization is a two-way process. Tally. The frequency of data update depends on three important factors: The volume of data generated across each location. Data Synchronization can be done by using either one of the following: 1.. data is synchronized using the customer's own IP address. The resources and cost involved in the update. Single click to update data. Synchronization over the Internet using a low bandwidth dial-up connection.1 Introduction to Tally Data Synchronization A number of businesses in the Small and Medium-Sized Enterprise (SME) segment operate in more than two locations. efficient and cost effective mechanism. Simultaneous update of data at both Server and Client.Net Server allows data synchronisation through dedicated tally server with defined IP available on a predefined port. In case of private network being used.

Server Hardware Set-up Pentium IV and above. Do not delete any vouchers using ALT+D. 2500/. The data will not be synchronized as the GUID (Global Unique Identifier) of both the companies will be the same. the accounting master 'Rent' having one transaction for Rs. 2500/. After synchronizing the data.and 'Building Rent' Rs. For example. Do not use a back-up of company created and restore it at the other location for synchronization. Another option is to identify and delete the voucher from both the Server and Client systems. 512 MB RAM.1.is altered in the Client to 'Building Rent'.Hard disk space dependant on the data to be stored.Data Synchronisation 4. 120 . 2000/-. Hard disk space dependent on the data to be stored. A new entry is made for Rs. as connection is required only when data has to be synchronized Software Set-up Internet Connectivity 4. the ledger will be 'Building Rent' for Rs.1. wherever masters have been altered. A dial-up connection will also serve the purpose. which ensures that the voucher remains in the system. Operating System: Windows 98/2000/2003/ME/ NT/XP Internet connection at the Client-end could be dialup. cancel the vouchers using ALT+X.2 Precautions 1. Do not alter Accounting or Inventory masters. it will be updated as a new master during synchronization. Instead. Software Set-up Internet Connectivity Client Hardware Set-up Pentium IV and above. 2000/-. 4. in the Client. 2. Operating System: Windows 2000/2003/NT/ XP An Internet connection via a cable modem or a leased line would be ideal. If altered. 3.while in the Server it will be updated as 'Rent' Rs. 128 MB RAM. Ensure that the same set of features are activated in F11: Features for both the companies at the Client and Server. the correction needs to be made manually in the Server and Client systems. Thus. 4500/.1 System Requirements The following set-up is recommended for efficient Data Synchronization.

Acme Manufacturing Ltd.ini file for Server Computer 121 .Net server is used as a medium to transmit data between the Client and Server during synchronization.NET Connect the Server Company to Tally. In the latest framework.NET Server involves the following steps: Configure Server for Synchronization Configure Client for Synchronization Create Sync Rule on Client Configure Tally.Net Server is available on a public IP at a predefined port. to Synchronize data across server and client. The Synchronization process using Tally. it is essential to register and connect to Tally. Tally.NET Handshake Process from Client Activate/Enable Sync Rule on Server Data Sychronization in this document is illustrated using the example of a company. Acme Corporation which is the head office and its branch office.NET Features on Server Register the Server Company on Tally. based in two different locations.NET The Tally.1 Tally. Figure 4..2 Data Synchronization using Tally.NET at Server (Tallygold / TallySilver) end.Data Synchronisation 4.

ini file 2.ini file. Indicating the system status as server and specifying the port number.Data Synchronisation Step 1: Configure Server for Synchronization Edit the Tally. as shown. Sync Configuration on Server: Go to Gateway of Tally > F12:Configure > Connectivity > Sync Configuration 1.ini file in the Server Computer. add the following lines 1. Set the option Ignore Clients modified Voucher Type Masters to No 2. Set the option Enable Sync Logging to Yes 3. ClientServer = Server and ServerPort = 9009. Press Crtl+S to save the changes made to Tally. Set the option Truncate previous log before Syncing to Yes 122 . Figure 4.2 Server Computer .Tally.

add the following line 123 . Enter your Tally Serial No. Ideally. Enable Sync Logging is set to Yes. Press Enter to save the details Ignore Client’s modofied Voucher Type Masters is set to No. TallyLinkid: Enter the required link ID in this field. to generate a Log file which contains synchronised vouchers and is saved in the Tally folder. so that modifications made on the Client to Voucher Type Masters are updated on the Server. in the TallyLink Id field Figure 4. to allow the previous log file to be overwritten by the current log.F12: Tally Sync Configuration screen 5.3 Server Computer . Tally Serial Number is used as the LinkID. Truncate previous log before Syncing is set to Yes.ini file in the Client Computer. Step 2: Configure Client for Synchronization Edit the Tally. This is a user defined ID and cannot be changed once defined and registered with Tally Server. It is case sensitive.Data Synchronisation 4.

4 Tally. Set the option Ignore Servers modified Voucher Type Masters to No 2. Press Crtl+S to save the changes to Tally.ini file Sync Configuration on Client Go to Gateway of Tally > F12:Configure > Connectivity > Sync Configuration 1. Enter your Tally Serial No.Data Synchronisation 1. ClientServer = Client Figure 4.ini file-Client Computer 2. in the TallyLink Id field 124 .

F12: Tally Sync Configuration screen 3.Data Synchronisation Figure 4.5 Client computer . Select Yes for Sync over slow connection 125 . Set Use Tally. Synchronize is selected in Type of Rule field by default. enter Acme Corporation in the Company Name on Server field 5. Step 3: Create Sync Rule on Client Select the Company for which the data needs to be synchronized on the client computer Go to Gateway of Tally > Import of Data > Synchronization > Client Rules > Create 1. Enter the Link Id in the TallyLink Id field. Press Enter to save the details. Select Yes for Synchronize Altered Transactions 6. which is already selected 4.NET Server to Yes 3. Enter Sync with HO in the Name of Rule field 2.

Enter the Contact Person Name and Contact Number in the respective fields 3. Set the option Allow to Connect Company to Yes 4. Step 4: Configure Tally. Select 85681 as SMS Short Code 126 . Enter Acme Corporation in the Connect Name field 2.NET Features on the server computer 1. Set the option Connect on Load to Yes 5.Data Synchronisation Figure 4. Press Enter to save the Client Rule screen The Company Name on server should be same as the Connect Name given for the Server Company.6 Client Rule Creation screen 7.NET Features on Server Go to Gateway of Tally > F11:Company Features > F4: Tally.

as per his requirements. 127 .Server Company 6. SMS Short Code: Based on the Short codes.7 Tally.NET Features . This should be same as the name given in the client company. Connect on Load: This options allows the company to get connected by default when the company is loaded.Data Synchronisation Figure 4. the request will be served from the Company Moble Access. Accept to save Connect Name: The user can specify any Connect Name for the company to be connected. Allow to Connect Company: This option allows the user to enable the company to get connected for remote access.

Server Company 3. Select the Company by pressing Spacebar as shown.NET features to be available in Tally.NET Go to Gateway of Tally > Alt+N: Tally. 2.NET Registration screen . Highlight the Company to be registered for Tally.NET services using arrow keys from the list of Companies.Data Synchronisation It is mandatory to enable Security Controls in Company Creation master for Tally. go to Company Alteration (Alt+F3) screen and enable the same for proceeding further. Figure 4.NET> Register Company on the server computer 1. If Security Controls feature is not enabled.8 Tally. Press Ctrl+A to register the Company 128 . Step 5: Register the Server Company on Tally.

NET> Connect Company on the server computer 1. Press Esc to proceed. 129 .NET Server Go to Gateway of Tally > Alt+N: Tally.Data Synchronisation Figure 4. Step 6: Connect the Server Company to Tally. 2.9 Registration Response Status Message screen 4. Highlight the Company to be connected for Synchronization using Tally.NET Server using arrow keys from the List of Companies. Select the Company by pressing Spacebar as shown.

NET Connect Company screen 3.10 Tally.Data Synchronisation Figure 4. Press Ctrl+A to Connect the Company 130 .

11 Company Connection status message On Successful connection. the Connection Status is displayed in the Calculator panel Step 7: Hand Shake Process from Client Go to Gateway of Tally > Import of Data > Synchronization > Synchronize 131 .Data Synchronisation Figure 4.

Step 8: Activate/Enable Sync Rule on Server Go to Gateway of Tally > Import of Data > Synchronization > Server Rules > Activate 1.Data Synchronisation Figure 4.12 Handshake Process from Client The Synchronization status is displayed in the Calculator panel. Select the required rule from the List of Rules based on the Client Company Name as shown 132 .

Post data Sync. Press Enter to select the Rule 3. In the Server Rule Activation screen.14 Server Rule Alteration screen You can continue using the Synchronization once Server rule is activated. Set Is Active to Yes to activate the Rule Select Yes for Synchronize Altered Transactions Figure 4.Data Synchronisation Figure 4.13 Server Rule Selection screen 2. server displays the status in the calculator panel as shown. 133 .

3. Step 2: F12:Configuration Go to Gateway of Tally > F12: Configure > Connectivity > Sync Configuration 134 .1 Configuring for Synchronization Server Configuration Step 1: Same as when done using the TallyLink Server.Data Synchronisation Figure 4.3 Synchronization — Private Network Customers having their own IP address and a high bandwidth can synchronize data without routing it through the TallyLink Server. 4.15 Sync success message on Server 4.

4. Client Configuration Step 1: Same as when done using the TallyLink Server.2 Procedure for Synchronization Create Client Rule on the Client system. Step 2: F12:Configuration The Sync Configuration screen appears as shown below: Figure 4. Select the company you wish to synchronize on the client computer Go to Gateway of Tally > Import of Data > Synchronization > Client Rules > Create The Client Rule Creation screen appears as shown below: 135 .Data Synchronisation The F12:Configuration screen appears as shown below: Figure 4.3.16 Sync Configuration Screen on Server Ensure that Use TallyLink is set to No (this option is set to No by default). This is a one-time set-up required to initiate synchronization.17 Sync Configuration Screen on Client Ensure that Use TallyLink is set to No (this option is set to No by default).

18 Client Rule Creation Screen Name of Field Name of Rule Use TallyLinkServer? Action / Description Give a name for the Client Rule. Sync with HO.g. 136 . This field will be skipped.Data Synchronisation Figure 4. when a personal IP address is being used. E.

Acme Corporation. Set this option to Yes if you want altered transactions to get synchronized. For example.1.1 : 12450 I P Address Port Number To find the URL when using Windows 98 and above. (Please read the section on PassThrough page for further information) This option allows you to specify whether the Server is listening in secure mode.g. Choose Synchronize Specify the company name available on the Server to which the vouchers from Client will be synchronized. Displays the GUID and name of the company on Client that requested the synchronization.0. Please read the section on Pass-Through page for further details.64/tallysync. (Refer Security Issues:https to be used instead of http for synchronization) When we use https. Start > Run > type ‘cmd’ > type ‘ipconfig’ If using Windows 95. By setting this option to Yes. in this case. the synchronization will be carried out for one packet (of 25 vouchers) at a time. Secure Server User Name Password Use Compression Type of Rule Company Name on Server Synchronize Altered Transactions? Sync over slow connection? Company GUID on Server 137 . E. you can specify 192. follow this option Start > Run > type ‘cmd’ > type ‘winipcfg If you are using a web page as a passthrough for synchronization. 127. If required If required Set this option to Yes to compress the data for faster synchronization.asp as the Server URL.Data Synchronisation Server URL Give the IP Address/Machine name of the Server along with the port number.0.168. you can specify the page URL. This also enhances security of data during synchronization. we necessarily need to have a pass-through page in between the Server and the Client.

Displays the Alter ID of the last voucher of the remote company that was successfully saved in the current company (of course. Altered TID Is Active The other steps for synchronization on the Client and Server Computer are similar to Synchronization using TallyLink Server. as a part of the sync process). go to Gateway of Tally > Import of Data > Synchronization > Server Rules > Alter.19 Server Rule Activation Screen 138 . To view the details of the activation. Figure 4. This field indicates whether the client rule is activated on the server.19. It cannot be edited. The Server Rules Activation screen appears as shown below in Figure 4.Data Synchronisation Name of Field Current TID Action / Description Displays the voucher ID of the last voucher of the remote company that was successfully saved in the current company (of course. as a part of the sync process). Select the rule from a drop-down list.

20.20 Screen Before Synchronization 139 . Figure 4.Data Synchronisation Figure below shows the number of vouchers and masters. Once the data is synchronised. the Statement of Statistics would appear as shown in Figure 4. There is a mismatch between statistics of Client and Server as synchronization has not been done.

When users do not want to reveal the real path to the Tally Server.3.3 Security Issues Since data is not encrypted by default during synchronization.4 Web page as a pass-through A web page is specified as a pass-through in the following circumstances. run Tally on a specific port (say 9090) and develop a web page which redirects all responses to this port. When it is not desirable to have Tally outside the firewall.Data Synchronisation Figure 4.3. When a Web Server and Tally Server reside on the same machine which connects to the Internet and only Port 80 (Default port for the Internet) is made available for security reasons.21 Screen after Synchronization 4. 4. you can enhance security by using https in the pass-through web page. In this scenario. a pass-through page can be used to direct to a virtual directory.3. a web pass-through page can then be used to connect to the Tally Server within the firewall.5 Troubleshooting Error messages on Server when using IP Address 140 . 4.

Data Synchronisation Error Messages <LINEERROR> Could not set ‘SVCurrent Company’ to <server company> </LINEERROR> Socket Error Cause Occurs if the company is not loaded on the server Solution Load the company from Gateway of Tally on the server Check connectivity and ensure that Tally Client is running Occurs if Client connectivity is broken during synchronization Error messages on Client when using IP address Error Messages Failed to Post to: http:// ipaddress:tallyport/ Cause Occurs if Tally Client is not able to access Tally Server Solution 1. Check whether Tally Server is running (Open your web browser and type in the address bar. You will get an HTML/XML response) 1. Check connectivity 2. http:// serveripaddress:tallyport/. Check whether Tally Server is running (Open your web browser and type in the address bar. You will get an HTML/XML response) Tally Server reported possible problems during Sync Occurs if the connectivity is broken during synchronization Tally. Check connectivity 2. http:// serveripaddress:tallyport/. 141 .imp file in the Tally folder contains details of all the vouchers synchronized and also the errors (if any) which occurred during synchronization.

When synchronization begins. The Current TID is used by Tally to determine if any new transactions have been created at the remote end since the last synchronization. there are two options available to proceed with synchronization. The initial synchronization can take a long time over the Internet. This essentially makes synchronization both a user-friendly operation and error free. Units of Measures.4 Principle of ‘Synchronization in Tally’ Tally ensures that all masters required to save a transaction are moved along with the transaction. the masters without any transactions in them will not be synchronized. The Altered TID of a voucher is generated each time the voucher is altered or re-accepted. In such cases. Groups. The Current TID of a voucher is generated when a new voucher is entered and does not change when the voucher is altered. The problem of updating these IDs are compounded if you have set up synchronization between companies having a large amount of data. After the first instance of synchronization. Currencies and so on. The Altered TID value is dynamic and is used by Tally to determine if any transactions have been altered at the remote end since the last synchronization. Synchronizing back-dated vouchers would mean updating these IDs in the Server company. if you do the synchronization in the middle of the year. 4. the synchronization will be complete and all data on the Client are updated on the Server and vice-versa. The Server Company maintains the Current Transaction ID (Current TID) and Altered Transaction ID (Altered TID) values of Client company in its Server Rule. Thus. If not. alterations in source transactions are reflected in subsequent synchronization. Similarly. Perform the following steps to ensure a proper update of Remote IDs in the corresponding rules.Data Synchronisation 4. 142 . the Server will respond with all vouchers having the Current TID/Altered TID greater than incoming Rule values. the Client company maintains the Current TID and Altered TID values of the Server company in its Client Rule. The Client computer is also likely to display an out of memory error. Option 1: Export data of the source company (in XML format) to a disk file and import the same into the target company. Stock Items. These vouchers will be imported into the Client. This includes Ledgers. Besides.5 Synchronizing back-dated vouchers Tally maintains Current TID and Altered TID of the Client company along with the Server/Client Rules. the Client sends its previous Current TID and Altered TID values of the Server as per its Rule to the Server and the Server checks whether the Current TID and Altered TID are the latest as per its data.

Create the Client Rule. Activate the Server Rule. 2. 1. 4. Activate the Server Rule. Choose the rule from a drop-down list and click Export Snapshot on the button bar. 2. 7. 10. 143 . 5.Data Synchronisation When the Client sends data to the Server: 1. 5. Import the masters into the Server from the disk file. 3. The process has to be reversed to update the Client. The Current TID and Altered TID of the last imported voucher are updated in the Server Rule. 7. 3. 9. 2. Subsequent Current TIDs and Altered TIDs would be incremental. Go to Gateway of Tally > Import of Data > Synchronization > Client Rules > Alter. 4. 8. Create a Client Rule. This will avoid out of memory errors. you can send one packet of 25 transactions at a time by selecting Sync over slow connection in the Client Rule. 6. Import the snapshot file from the CD at the Server. Export all vouchers (in XML format) from the Client to the disk file. Go to Gateway of Tally > Import of Data > Synchronization > Server Rules > Alter 8. Export all transactions (in XML format) from the Server to the disk file. Instead export all masters (in XML format) from the Server to the disk file. Choose Synchronize to activate the option Export/ Import Snapshot. you have the option to update the Server and Client by creating a snapshot file at the source and importing them to the destination computer. Activate the Server Rule. Import the masters into Client.If you wish to synchronize over a LAN or Internet. Choose the rule from a drop-down list and click Import Snapshot on the button bar. 5. 7. Instead export all masters (in XML format) from the Client to the disk file. Import the transactions into the Client from the disk file. 4. Select Synchronize on Client which creates a corresponding Server Rule on the Server. 6. 3. The process to update the Server is as follows: 1. 6. When the Client retrieves data from the Server: Create a Client Rule. DO NOT synchronize again. Select Synchronize on Client which creates the corresponding Server Rule. Copy the snapshot file to a CD. Export the snapshot at Client. DO NOT synchronize again. Import the transactions into the Server from the disk file. Go to Gateway of Tally > Import of Data > Synchronization > Client Rules > Import Initial Option 2: When substantial data exist at both Client and Server.

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