Introduction

Yuvadhara Club, Onamthuruthu in association with Nehru Yuvakendra, Kottayam (Govt. of India) now
offering free training and certified course of Tally ERP 9. Learn Tally step by step with real time project
scenarios from basic concepts to advanced concepts as a part of Education in Basic Vocations and Soft
Skills (EBVSS). These classes are especially designed for beginners, so that beginning learners can easily
learn Tally.ERP 9 with zero knowledge.

What is Tally?

 Tally is an ERP accounting software package used for recording day to day business data of a
company. The latest version of Tally is Tally ERP 9.
 Tally ERP 9 Software is oneWhat is Tally?
acclaimed financial accounting system and inventory management
system with power computer.
 Tally.ERP 9 is one best accounting software that can integrated with other business applications
such as Sales, finance, Purchasing, Payroll, Inventory, etc.
What is Tally?
 Tally software stores all the business transactions of each account in detail. Tally ERP 9 follows
double entry accounting system and hence eliminates and rectifies possible errors.

1. Tally Basics
1.1 Tally - Download & Install Tally.ERP 9

Download latest version of Tally ERP 9 with GST. The downloading and installation of Tally ERP 9
software is an easy method and fast. Here we have provided a simple procedure steps to download Tally
ERP 9 software and install Tally on Windows OS or Apple Mac computer systems for practice.Tally
Solutions offers various products to download for practice and business (requires licence). With trial
version you can try Tally for free of cost. It offers the following products.

Tally.ERP ,Tally.Server, Shoper, Tally.Developer and Adds on for GST

How to download Tally ERP 9 Software

Refer below steps to download Tally ERP 9 software

Tally ERP 9 software can be downloaded from the official website of Tally Solutions

i.e. https://tallysolutions.com

Choose the option downloads from the Menu

Choose the option Tally.ERP 9

Now download the latest version of Tally.ERP 9 by choosing the option Install now or Download for
later

 By choosing the option – Install Now enables to install the Tally through online
 By choosing the option - Download for Later enables to download the Tally software into your
system and install using the customizing settings.

Download Latest Version of Tally from here

Install Tally ERP Through online

How to Install Tally ERP 9 Software on Windows computer

After downloading the latest version software of Tally ERP 9, you need to perform the following
installation steps.

Go to the folder, where the Tally software has been download on your computer

Fig 1 : Tally Software Setup

Double click on the Tally application icon to install on your system. Now a user account control panel
windows opens with the options “YES” or “NO” to allow the program to make changes to this computer.
Click on “YES” option.
Choose the installation folder and click on install

And install the Tally.ERP 9 on your computer.

Installing Tally ERP using Install Now / Online Installer

If you get any errors while installing the Tally ERP application with the downloaded software, you can try
installation through online by choosing the option Install Now.

Setup application will be download on your system, open the downloaded folder and double click on
setup icon.

Setup Tally ERP software

Next User Account Control windows displays on the screen, choose Yes option to continue.

Tally user account control

Now click on install option.

 Install Tally ERP 9 Software on Windows

Now you will get a status bar of downloaded Tally software and will be installed on your system
automatically.

After installation of Tally, a message will be displayed as ” You have successfully Installed Tally.ERP 9
series with version.
 Tally ERP 9 Installation

Successfully Tally ERP 9 Software has been installed on Windows Computer.

1.2 Tally - How to Start Tally.ERP 9

After successfully installation of Tally ERP 9 on windows or Mac computer, you can start Tally ERP 9
by using one of the following method.

Start Tally ERP 9 icon

Double click on Tally ERP 9 icon from computer desktop or

Follow the Path: Start > Programs > Tally.ERP 9

 Tally ERP 9 Start

The startup screen appears with the options

Licensing Operations : To activate your licence, press A from your keyword and enter

Login as remote Tally.Net user : If you valid Tally.Net User id and password of a company connected,
you can login as remotely.

Work in Education Mode : Use Work in education mode for practice purpose. This mode allows to
work with tally without buying the license with some restrictions.

Quite : Click on Quite option to close the Tally.

Here we are using Tally ERP 9 software for educational practice purpose, so we choose the option
work in education mode.
 Tally Work in Educational Mode

Note: If you are using Tally for business purpose, you should purchase the licence and activate using
the purchased license key.

After log in to Tally, the welcome screen of Tally ERP 9 power of simplicity displays on the system.

Tally Erp 9 welcome screen4

After loading the Tally.ERP 9 software on your system, the gateway of tally displays on the screen.

Gateway of Tally

From this screen you are allowed to work with the Tally ERP 9.
How to Close/ Quit Tally ERP 9

After you work with Tally ERP 9, you can quit Tally ERP 9 screen, but you need to close all the screen
before shut down the Tally.

To quit Tally ERP 9, you can use any of the following method.

Press ESC key from your keyword until you see the confirmation message QUIT: YES/ NO, Press Y
from your keyword to Quit Tally ERP 9.

You can quit Tally.ERP 9 without confirmation message by pressing Ctrl+Q buttons from Gateway of
Tally.

Alternatively click on quit option which is available on right top menu.

1.3 Tally - Screen Components

After you startup the Tally ERP 9 Application, the welcome home screen of Tally ERP 9 – Power of
Simplicity displays on the screen during the Tally software loading on compute system.

Tally ERP 9 welcome screen

After loading the Tally software, the Tally ERP.9 startup screen displays on the screen as shown
below.
 Tally Home Screen

The home screen of Tally ERP 9 contains the following components

 Title Bar: It displays the Tally software that you are using.
 Horizontal Button Bar: It helps to choose Language, Keyboard settings, Control centre, support
centre and Help.
 Close Button : By click on this button or ctrl+m, tally window closes
 Task Bar: Displays the task of Tally ERP 9
 Gateway of Tally: It displays menu, screen and reports
 Info Panel: Information panel displays the tally version, license details and configuration details

Calculation Area: Calculation area will be used for calculation functions.

Buttons Tool Bar: It displays the buttons that enables for immediate interaction with Tally.ERP 9. It
displays only the buttons that are applicable to the current task.

Date and Time: Displays current data and time.

1.4 Tally - F12: Configurations

Gateway of Tally –> Press function key F12 or click on F12:Configure

F12 Configurations

The configuration screen contains multiple settings that help to configure the required information for
master creation, voucher entry, banking, printing, etc. The important settings that available on
configurations screen are
General: Under General configuration screen, you can configure the details of country, name style,
format of dates, format of number, Table configuration, Import/export configuration and other options.

General Configuration

Numerical Symbols: Numerical symbols contains configurations of

 Symbols to use for positive numbers

 Symbols to use for negative numbers
 Symbols to use for debit amount
 Symbols to use for credit amount
 Numerical Symbols - COnfiguration in Tally

Accts/ Inventory Info: Accounts and Inventory information contains the configuration details of

 Master data
 Accounts and
  Inventory

Accounts and Inventory information configuration tally

Voucher Entry: Voucher entry contains the configuration details of

 Accounts
 Inventory
 Statutory

Voucher Entry Configuration in Tally

Invoice / Order Entry: Invoice and order entry contains the configuration details of voucher entry for

 Accounts
 Inventory
  Statutory

Invoice/Order Entry Configuration in Tally

Payroll Configuration: Payroll configuration contains the details of

 Add notes for employees

 Show statutory details
 Provide passport and visa details
 Provide contract details
 Show resigned/retired employees
 Show employee display name
 Payroll Configuration in Tally.ERP 9

Banking Configuration: It contains the configuration details of

  Show all reconciled transactions in BRS till date
 Remove bank date on altering reconciled voucher
 Location of new bank statements
 Location of imported bank statements
 Location of payment instructions
 Show details before export/upload
 Allow reset on the upload transactions
 Location of new intermediate files
 Location of imported intermediate files

Banking Configuration in Tally

Printing: This configuration helps to configure the printing screens for

 Purchase transaction
 Payment Vouchers
 Sales transactions
 Receipt Vouchers
 Journal / Contra
 Debit / Credit note
 Reminding letters
 Confirmation statements
 Payment advice configuration
  Payroll
 Advanced configurations

Printing configuration in Tally

E-Mail: This configuration helps to setup the e-mail server of company.

E-mail configuration

Data configuration: This configuration helps to define

 Location of data files

 Location of export files
 Load companies on start up
 Select companies to preload on startup
 Location of language file
 Location of configuration file
 Data configurations in Tally ERP 9

Advanced Configuration: This configuration helps to define the client / server configuration such as

 Tally.ERP 9 acting as
 Enable OBDC server
 Port number
 Connection Configurations
 Log Configuration
 Tally.server 9 configuration
 Tally.Net server proxy configuration
 Gateway proxy configuration

Advanced configuration in Tally ERP 9

Licensing: This configuration helps to update the details of Tally license

Activate License

Reactivate License

Configure existing License

Get a Rental License

Licensing configuration in Tally

After configuring all the required details, restart the Tally application to reflect the settings based on the
updated configurations in Tally.
1.5 Tally - Accounting Features

Accounting features in Tally is one of the important category of company features that consists of
several configurations and functionalities used for accounting transactions and reports. Accounting
features can be opened by pressing function key F11 or click on the option F11: Features (available at
button toolbar)

Accounting Features - F11

Accounting features is further divided in to 6 sections,

 General
 Outstanding Management
 Cost/ Profit Centre Management
 Invoicing
 Budgets/ Scenarios Management
 Other Features

How to open Accounting Features

To open accounting features in Tally ERP 9, use any one of the following method.

Path: Tally Main > Gateway of Tally > F11: Features > Accounting Features

Function key: F1: Accounts (Press function key F1 from your keyword)

The following screen displays after executing the accounting features in Tally
 Accounting Features in Tally

On company Operations Alteration screen, update the following details.

General

 Maintain Accounts Only: Choose this option, if you are maintaining inventory transactions
 Integrate accounts and inventory: Choose Yes option to include stock or inventory balances
from inventory records.
 Use income and expense a/c instead of profit & loss a/c: Choose this option to display the
income and expenses accounts as menu instead of profit & loss account.
 Enable Multi Currency: Choose this option to work company with multi currencies.

Outstanding Management

 Maintain bill-wise details:

 For non trading accounts also:
 Activate interest calculation:
 Use advanced parameters:

Cost / Profit centre management

 Maintain Payroll:
 Maintain cost centres:
 User cost centre of job costing:
 More than one payroll/cost category:
  Use predefined cost centres allocation in transactions:
 Show opening balance for revenue items in reports:

Invoicing

 Enable Invoicing
 Record purchases in invoice mode
 Use debit and credit notes
 Record credit notes in invoice mode
 Record debit notes in invoice mode

Budgets and Scenarios Management

 Maintain budgets and control

 Use reversing journals and optional vouchers

Banking

 Enable cheque printing

 Set/alter transaction type
 Set/alter banking features
 Set/alter post dated transaction features

Other Features

 Enabled zero valued transactions

 Maintain multiple mailing details for company and ledgers
 Enable company logo
 Mark changed vouchers

After enabling all the required accounting features for company, press enter or ctrl + A to save the
configured details in Tally ERP 9

1.6 Tally - Inventory Features

Inventory features in Tally consists configurations / functions related to inventory transactions and
reports.
Inventory features in tally are furthered sub-divided into 7 functions, such as

How to start inventory features in Tally ERP 9

Path: Tally Main –> Gateway of Tally –> F11: Features –> Company Features –> Inventory Features or
click on F2: Inventory.

By using inventory features, you enable or disable the options for day to day business transactions. The
following screen displays after executing the inventory features.

Enable Inventory Features in Tally

On company alteration screen, update the following details

General

 Integrate accounts and inventory: Choose this option as Yes to include stock or inventory
balances in inventory records.
 Enable zero value transactions: Choose this options as Yes to allow the zero value transactions.

Storage and classification

 Maintain multiple godowns: Enable this option if you have more than one storage location and
godowns for storing the materials.
 Maintain stock categories: Enable this to define or maintain stock categories
 Maintain batch wise details: Enable this option to maintain batch wise details for stock items
 Set expiry dates for batches: Enable this option for maintaining expire dates for batches
 Use separate actual and billed quantity columns
Order Processing

 Enable purchase order processing: Enable this option to define purchase orders
 Enable sales order processing: Enable this option to define sales orders
 Enable job order processing: Enable this option to define job orders.

Invoicing

 Enable Invoicing:
 Record purchases in invoice mode
 Use debit and credit notes
 Record credit notes in invoice mode
 Record debit notes in invoice mode
 Use separate discount column in invoices

Purchase Management

 Track additional costs of purchases

Sales management

 Use multiple price levels

Other Features

 Use tracking numbers (enables delivery and receipt notes)

 Use rejection inward and outward notes
 Use material in and out vouchers
 Use cost tracking for stock item

After enabled or disabled the features, choose A: Accept or press ctrl+ A to save the details.

1.7 Tally - Statutory & Taxation

You can use Statutory and Taxation features in Tally by enabling and disabling options in the company
alteration screen.

Follow the path and open statutory and taxation.

Gateway of Tally –> F11: Features –> Company Features –> Statutory Taxation or press function key F3
 Statutory and Taxation in Tally

 Enable Goods and Services Tax (GST): Enable GST option to use GST tax for company
 Set/alter GST details: Enable this option to change the GST details.
 Enable Value Added Tax (Vat): Country India is now following GST tax, so disable this option as
company is following GST tax.
 Set/Alter VAT details: Choose this options as No
 Enable Excise: Enable this option to use the Excise
 Set/alter excise details: Enable this option to change the excise details
 Enable Service Tax: Enable this option to use the service tax by company
 Set/alter service tax details: Enable this option only to alter the service tax details
 Enable Tax deduction at Source: Enable this option to use TDS
 Set/alter TDS details
 Enable Tax collected at Source: Enable this option to use TCS
 Set/alter TCS details
 Tax Information:
 PAN/Income Tax No: Update the company permanent account number (PAN) / Income tax
number in this field.
 Corporate Identify No: Update the company CIN number in this field.
 Statutory & Taxation in Tally (F3: Statutory)

After updating all the required details for statutory and taxation, choose A: Accept to save the details.
 2. Creating Accounting Masters

2.1 Tally - Create Company

Step 1: After login to Tally, double click on the option create company under company information. To
create company in Tally, follow the following navigation path Gateway of Tally > Company Info > Create
company

Create company in Tally ERP 9

Step 2: The company creation window displays on the screen as show below image

Note: Use the enter key or Tab key or Arrow key or Mouse to navigation between the fields in Tally.

Step 3: On company creation screen, update the following details

Directory: It is a path where the company date will be stored on system. By default, the tally
directory will updated as C:\Users\Public\Tally.ERP9\Data and you can change the path as per
your requirements.

Name: Update the name of company that identifies in Tally ERP 9.

Primary Mailing Details

 Mailing Name:The mailing name of company will be automatically updated as per the
given name of company, however the mailing name can be changed as per the
requirements.
 Address: Update the complete address details of company
 Statutory Compliance for: Choose the country name as India from the given list of
countries.
 State: Choose the state from the given list of states.
  Pin Code: Update the Pin Code of company, where it is located.

Contact Details

 Telephone No: Update Company landline/ Telephone number

 E-Mail: Update the company e-mail id
 Mobile No: Mobile number for contacting
 Fax no: Update the Fax number
 Website: Update the official website address of company

Books and Financial Year Details

 Financial Year From: Update the financial year starting date, all Indian companies
financial year start from 1st April and ends on 31st March. Tally considers the 12 months
from the date given for financial year. The financial year will be automatically displayed
on Tally system, if FY starts in middle of year, you can specify the exact date from here.
 Books Beginning from: Specify the books beginning date.

Security Control

 Tally Vault Password: By enabling Tally vault password, the company data is secured in
an encrypted form. The data is not accessible without the password, if you lost the
password that will be not recovered.
 Use Security Control: Enabling securing control helps only authorized users are allowed
to enter/edit/delete the vouchers on Tally.

Base Currency Information

 Base Currency Symbol:

 Formal Name: INR (India Rupees
 Suffix Symbol to Amount: No
 Add spaces between the amount and symbol: Yes
 Show amount in Millions: Yes
 Number of decimal Places: 2
 Word representing amount after decimal: Paisa
 No of decimal places for amount in words: 2
After updating all the required details of company, choose Yes to save the entered details in Tally.

2.2 Tally - Alter/ Delete / Shut Company

After creation of company in tally, the given company information can be alter/ modify/ change as per
requirements.

Step 1: To Alter company in Tally: Gateway of Tally >> Press Alt+F3 > Alter

Step 2: Under list of companies, choose the company name (Tutorial Kart) and click on name of
company to alter.

Step 3: On company alteration screen, add and modify the required details and use Ctrl+ A options to
save the details. Here we have added contact details of phone number.

If you delete company in Tally, it removes the complete information of company from Hard drive, all the
files and directories that are associated with company will be deleted permanently and it cannot be
reversed.

To delete company in Tally ERP 9: Gateway of Tally > Alt+F3 > Alter > Alt+D.
Step 1: After using Alt+F3 keys, the company information screen displays on the screen. Here the delete
option will be not available. Click on alter option.

Alter Company in Tally

Now selection company and click Alt+D and click on YES option to delete the company in Tally ERP 9.

Delete company in Tally ERP 9

How to shut company in Tally ERP 9

Shut a company in tally does not mean that delete a company, it means close. After you work with
company, press Alt+F1 if you choose more than one company or choose Quit button to close the
present company.
2.3 Tally – Groups

Group is a collection of ledgers of the same natures. Tally software automatically create 28 groups which
are used in the chart of account. Out of 28 predefined groups in tally, 15 groups are primary groups and
13 groups are Sub-groups. The different types of groups are
1. Primary Groups
2. Sub Groups
Example of Group

Primary Groups: Primary Group in Tally is main group, Groups are structured as hierarchical
organization. At the top of hierarchy are primary groups. Among 15 primary groups, 9 groups are
balance sheets items and 6 groups are profit and loss a/c items.
List of Primary Groups in Tally

1. Branch/ Divisions 6. Indirect Income 11. Current Assets

2. Capital Accounts 7. Suspense Account 12. Direct Incomes

3. Sales Accounts 8. Current Liabilities 13. Fixed Assets

9. Misc. Expenses
4. Loans (Liabilities) (Asset_ 14. Direct Expenses

10. Purchase
5. Indirect Expenses Accounts 15. Investments
Sub Groups: Sub groups are part of primary group, sub groups can be divided into 13 groups.
List of Sub groups in Tally

1. Sundry Creditors 6. Duties & Taxes 11. Bank Accounts

12. Reserves &

2. Secured Loans 7. Deposits (Assets) Surplus
 13. Loan & Advances
3. Stock in Hand 8. Bank OD Accounts (Assets)

4. Provisions 9. Unsecured Loans

5. Cash in Hand 10. Sundry Debtors

Tally ERP 9 follows the single ledger concept of accounting and this leads to direct contrast to subsidiary
ledger accounting. So all financial entries are performed using ledgers or account heads. You can group
all ledgers and financial statements can be drawn according to requirements of company.

Important tutorials related to groups

1. How to create a group
2. How to create single group
3. How to primary group
4. How to delete group
5. How to create multiple groups

3.4 Tally - Create Groups

In this Tally Tutorial, we shall learn how to create group in Tally ERP 9 and how to alter and display
created groups.

If you are creating groups in Tally for the first time, it is recommended to enable

Provide advanced information in masters

Allow advanced entries in masters

Path: Gate way of Tally –> F12: Configure –> Accts / Inventory Info –> Accounts
 How to create Group in Tally

Maintain the following Sundry Debtors Ledgers Accounts in Tally.ERP 9

Main Groups: South India Debtors Group and North India Debtors Group under Sundry Debtors

Sub-Groups: Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India Debtors

ABC limited & Tech solutions grouped under North India Debtors.

Step 1: Go to Gateway of Tally and click on accounts Info

Accounts Info Tally

Step 2: Under Accounts info, choose the option Groups.

Accounts Info - Groups in Tally

Step 3: Under Single Group menu, choose the option create to create single group in Tally ERP 9

Create single group in Tally ERP 9

Step 4: On Group creation screen, update the following details.

Name: Enter the name of group and press enter to continue

Under: Choose the group name from list of groups as Sundry debtors (You can move to group name
pressing upper or lower key).

After entering the required details, press enter or Ctrl+A / A:Accept to save the details.

Note: After creation of new group in Tally, created group displays under the list of groups.

Also create other groups using above procedure

South-India-debtors under Sundry Debtors

Bangalore debtors, Vijayawada debtors and Hyderabad Debtors under South India Debtors

ABC limited and Tech Solutions under Bangalore Debtors.

Tally ERP - South India Debtors

Tally.ERP 9 allows to create any number of groups under all default groups. Here we have created two
groups under Sundry Debtors i.e. South India Debtors and North India Debtors. And three sub-groups
(Bangalore debtors, Vijayawada debtors and Hyderabad Debtors) created under South India Debtors.

How to Display a Group in Tally

After groups are created in Tally ERP 9, you can display all the created groups with details. However in
display mode, users are not allowed to edit/ alter the data.
Step 1: Path: Gateway of Tally > Accounts Info > Groups.

Step 2: Click on the option display under single group to displays groups in Tally.

Display a Group in Tally

Step 3: Under list of groups names, choose the required group name and click on that particular group
to display on the screen.

List of groups to display Tally

Now the ledger (Bangalore Debtors) display on the screen as

Click on Q: Quit to close the screen.

How to Alter Group in Tally ERP 9

After groups are created in Tally.ERP 9 application, the details can be alter as per the requirements. To
modify/ alter group in tally, refer below steps:

Step 1: Go to Gateway of Tally -> Accounts Info –> Groups.

Step 2: Under single group, click on alter option.

Step 3: You can search the group from the given search field and click on that group name to modify the
details.

Step 4: On Group Alteration screen, update the required details and click A: Accept to save the details.
How to Alter Group in Tally ERP 9

Now learn how to create ledgers for ABC limited and Tech Solutions under Bangalore Debtors.

2.5 Tally - Create Single Ledger

In this Tally tutorial, we shall learn how to create single ledger in Tally step by step.

Note: In this lesson, we are going to create ledger Axis Bank Account under Bank Account.

The date that required for ledger depends upon the features opted by us. If the settings of accounting
features (F11) of company were “NO” for all options, than the ledger screen provides with minimal
information.

Tally.ERP 9 automatically creates two ledger accounts i.e. Cash in Hand and Profit & Loss Account. We
can create the ledger accounts as per requirements of an organization. We can not create another profit
& loss account in tally, and we can create any number of cash accounts with different names (Petty
Cash).

How to create ledger account in Tally ERP 9

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Create

Step 1: From Gateway of Tally Screen, click on accounts info

 Accounts Info in Tally

Step 2: In the next screen, choose “Ledger”

Ledgers

Step 3: In the next ledger screen, choose the option create under single ledger

Create single ledger in Tally

Step 4: On ledger creation screen, update the following details

Name: Enter the name of ledger account, and the name should be unique.

Under: Choose the group name from list of group, that pertains to ledger account.

Create single ledger account in Tally

After maintaining all the required details, choose Yes option under Accept to save the configured details
in Tally.ERP 9.

How to display single ledger in Tally

After creation of single ledger account in Tally, you view the details of ledger by choosing the option
display. Refer below steps how to display single ledger

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Display

How to display single ledger in Tally

Choose the ledger account from list of ledgers

List of Ledgers

Now the complete details of ledger account display in the screen as shown below image.

Display Ledger in Tally

How to Alter Single ledger in Tally

Path: Gateway of Tally –> Accounts Info –> Ledgers –> Single Ledger –> Choose Alter

How to alter single ledger in Tally

On select ledger screen, choose the ledger account from the list of ledgers

List of Ledgers

Now modify/ alter the required details for ledger account and click on A:Accept to save the changed
details in Tally ERP 9.

Alter ledger account in Tally ERP 9

2.6 Tally - Create Multiple Ledger

Step 1: Goto Gateway of Tally and Choose Accounts Info.

Accounts Info in Tally

Step 2: Under account info, choose the option Ledgers

Ledgers

Step 3: Click on create under multiple ledgers option to create multi ledgers in Tally

Create multiple ledgers

Step 4: On multi ledger creation screen, enter the following details

Under Group: Choose the Bangalore Debtors under the list of groups, however you can search group by
entering the group name in the given under group text field.

multi ledger creation under group in Tally

Step 5: Under Group: Bangalore Debtors screen, update the following details.

Name of Ledgers: Enter the name of ledger that you like to create in Tally

Under: The under group field will be automatically filled by Tally as Bangalore Debtors ( As we are
creating ledgers under Bangalore Debtors).

After entering the details, press enter to continue. You will get messages as Accept: Yes or No, choose
Yes to accept the updated details in Tally.ERP 9.

Create Ledgers (Multiple Ledgers) in Tally ERP 9

Successfully we have created multiple ledgers in Tally ERP 9.

2.7 Tally - Create Single Cost Center

Before creation of cost centre in tally, make the following configuration settings to enable cost centre in
Tally.ERP 9. By enabling cost centres in accounting features helps you to create cost centres under
account info.

Step 1: Go to Gateway of Tally > F11: Features > click on F1: Account Features.

Accounting Features - F11

Step 2: In the next screen, enable the option for Maintain Cost Centres as “Yes”

enable cost centres in Tally

Click A:Accept to save the changed details in Tally.ERP 9.

How to create cost centre in Tally

Path: Gateway of Tally –> Accounts Info –> Cost Centres.

Step 1: Go to Gateway of Tally and click on Accounts Info.

Accounts Info in Tally

Step 2: Now click on the option “Cost Centres”

Cost centres Tally.ERP 9

Step 3: In the next screen, under single cost centre option click on the option create.

Note: If you want to create multiple cost centres in Tally, choose the option create under multiple cost
centres.

Create single cost centre Tally

Step 4: On cost centre creation screen, update the following details

Category: Tally automatically create primary cost centre where all the cost centres are to be assigned.
Primary cost centre is a default cost centre until we create new one. Choose the category as Primary
Cost Centre.

Name: Enter the name of cost centre.

Alias: You can can call the cost centre with other name, for e.g. Head Office, Branch, etc.

Under: Update the parent cost centre for this cost centre from the list of cost centres.

Cost Centre Creation in tally

After entering the required details for cost centre creation, choose A:Accept to save the details.

How to display Single Cost Centre in Tally

Path: Gateway of Tally –> Accounts Info –> Cost Centres –> Single Cost Centre -> Display

3. Creating Inventory Masters

3.1 Tally - What is Stock group

Stock groups in Inventory are similar to groups in accounting master. Stock groups in tally helps in
classification to stock items according to their behavior. The grouping of stocks in tally enables to
identify and report in statements as per stock wise. Similar stocks can be are grouped under stock
groups according their characteristics, brand, product type, etc.
Examples of Stock Groups
Tutorial Kart sells Laptops, PC’s and Music system. Below are the structure of stock items that being
sold.
 Group A Computers

A1a – 13 Inch Laptop

A1 – Lenov0 A1b – Lenovo 16 Inch PC

A2a – Dell 13inch Laptop

A2 – Dell A2b – Dell 16 inch Pc

A2a – HP 13inch Laptop

A3 – HP A3b – HP 16 inch PC

In above example, all the laptops and Pc’s are grouped under computers and main stock group
computer will be created in tally.
Group B – Music System

A2a – Blue Ray Player

B1 –
Sony B2b – DVD player

In above examples, music products are grouped under music system and main stock group music system
will be created in tally.

3.2 Tally - Create single stock group

Stock groups in Tally are used to classify the products according their common behavior. To create single
stock group in Tally ERP 9 use the following navigation paths: Gateway of Tally > Inventory Info > Stock
Groups > Single Stock Group > Create.

Refer below step by step procedure for creation of single stock group in Tally ERP 9.

Step 1: From Gateway of Tally screen, choose Inventory Info.

Single stock group - inventory info

Step 2: In next screen, under inventory info choose stock groups.

Stock groups - inventory info in tally

Step 3: Under single stock group, choose create option to create single stock group in as per
requirements of company.

To create multiple stock groups in Tally, follow the navigation Gateway of Tally > Inventory Info > Stock
groups > Multiple stock groups > Create.

Refer below step by step procedure of creation of multiple stock groups in Tally ERP 9.

Step 1: From Gateway of Tally Screen, choose the option Inventory info.

Inventory info - Multiple Stock Group in Tally ERP 9

Step 2: Choose the option stock groups under Inventory Information.

 Stock groups - inventory info in tally

We already created single stock group in Tally, here we are going to create multiple stock groups. Now

choose “Create” option under multiple stock groups.

Create Multiple stock groups

Step 4: In the next screen multi stock group creation, you need to choose the group under the list of
groups for under group. Here we have given Television (double click on Television to choose) as under
group.

Step 5: Now update the Stock group as shown below .

Name of Stock Group Under Should Quantities of Items be Added

Sony Tv Television Yes

Samsung Tv Television Yes

Xiami Tv Television Yes

Philips Tv Television Yes

 Multi stock creation in Tally ERP 9

After maintaining required details for multi stock group creation, choose A: Accept to save the
configured details in Tally.

Create single stock group in tally

Step 4: In next screen “Single Stock Group Creation” enter the following details.

Name: Enter the name of stock group that has to be created in Tally. Here we have given “Television” as
a new single stock group.

Under: Choose stock group as Primary

Should quantities of items to be added: Choose options as Yes

Create single stock group in Tally

After entering all the required details, choose “A:Accept” to accept the updated details.

Now successfully we have created single stock group in Tally.

4.3 Tally - Create multiple stock groups

4.4 Tally - Stock Categories

Before creation stock category in tally, you need to set “Yes” for Maintain Stock Categories in F11:
Features. Gateway of Tally > F11: Features > Inventory Features

Maintain stock categories in tally

How to Create Single Stock Category in Tally

Step 1: Navigation to Gateway of Tally and than choose the option Inventory Info

Inventory Info in tally

Step 2: Under inventory info, choose Stock Categories option to create stock category in Tally.ERP 9.

Stock categories in Tally ERP 9

Step 3: Under Single stock category, choose “Create” option to create single stock category in Tally.

Create single stock category

Step 4: In next screen “Sintock creation” update the following details.

Name: Enter the name of stock category that has to be created in Tally, here we have given name of
stock category as “32 Inches TV”

Under: By default choose “Primary”

 Press enter to continue and click on Yes to accept the data.

3.5 Tally - Create Godowns /Locations

Godowns is a location where stock items are stored safely. In Tally, the reports of stock items can be
prepared as per Godowns.

You can create Godowns in Tally (location) by using two methods, i.e.

1. Single Godowns
2. Multiple Godowns

Before creation of multiple Godowns in tally, you need to set “Yes” for Maintain multiple Godowns in
F11: Features. Gateway of Tally > F11: Features > Inventory Feature.

Maintain multiple Godowns in Tally

How to Create Single Godown

Step 1: From Gateway of Tally, under masters choose the option Inventory Info.

Step 2: Under inventory Info, choose Godowns option to create Godowns in Tally as per requirements of
a company.

Godowns in Tally

Step 3: Under single Godown, click on create option to create single Godown in Tally.
Create single godown in tally

Step 4: In next screen GoDown creation, enter the following details.

Name: Enter the name of Godown, you can the name of Godown as the location name where it has
been located.

Under: Enter under which godown comes

After entering the details press enter and press Y or enter to accept the configured Godown in tally.

Creation of single godown in tally

For our example, here we created a new Godown with name “Amravathi” under Primary.

How to Create Multiple Godowns in Tally

Now learn how to create multiple Godowns in tally step by step.

Step 1: Gateway of Tally > Inventory info > Godowns and click on create under multiple Godowns.

Create multiple Godowns in Tally

Step 2:In next screen multi godown creation, enter the following details.

Name: Enter name of Godown / location name

Under: Choose “Primary”

How to Create Multiple Godowns in Tally

After updating all the Godowns / locations in tally, choose yes to accept the data in Tally.
3.6 Tally - Create Unit of Measures

In Tally, you can create units and compound units (for e.g. No’s, pcs, box, etc) to measure stocks.
Compound unit is referred to combination to two units of measure. For example, a box of 25 pieces is a
compound unit of measure.

Gateway of Tally.ERP 9 > Inventory Info > Unit of Measure > Create.

Step 1: Login to Tally, from Gateway of Tally > choose inventory info.

Inventory info - single stock in Tally

Step 2: Next choose “Unit of Measures”.

Unit of Measure in Tally

Step 3: Under Units, click on Create option to create units of measure in Tally.

Step 4: In next screen unit creation, enter the following details

Symbol: Enter the units symbol by which a stock items are identified. For e.g. No’s indicates numbers.

Formal name: Formal name refer as another name of the units. It helps to match the symbols with their
respective names.

Number of decimal places: number of decimal can be used for detecting units. For example – 5.20 Kg
refer as 5Kg and 200 gms, where three decimals are expressed in grams.

Unit creation in tally ERP 9

After entering all the required details, press A:Accept to save the details in Tally.

4.7 Tally - Create Stock items

In Tally, stock items are referred to goods or services that a company manufactures or trade.

Stock items in Tally can be created by two methods, i.e.

1. Single stock item

2. Multiple stock items

Opening
Groups Name of Items Unit Qty Rate Amount

Music
System Sony Blue Ray Player Nos 10 25,000 250,000

Philips DVD player Nos 5 15,000 75,000

Sony 5.1 Music

System Nos 2 20,000 40,000

Television Sony 32 Inch Tv Nos 3 25,000 75,000

LG 32 Inch Tv Nos 4 20,000 80,000

MI 32 Inch Tv Nos 2 15000 30,000

How to create single stock item in Tally

Path: Gateway of Tally.ERP 9 > Inventory Info > Stock Items > Single stock item > Create

Step 1: From the initial screen of Tally, i.e. Gateway of Tally, choose inventory info. - Inventory Info in
Tally ERP 9

Step 2: Next screen, choose “Stock items” - Choose stock items in tally

Step 3: Under single stock item, choose create. - Single stock item create in tally

Step 4: In next screen, single stock creation enter the following details. - Name: Enter the name of stock
item

Alias: It can be short name of stock item or another name or product id. - Under: Enter the stock group
under which this stock item to be specified

Category: Enter the stock category of stock item

Units: Units of measure to count the stock item

Opening Balance: Enter the opening balance of stock item

Quantity: Enter quantity of stock item

Create single stock item in tally

Rate: When you are entering the rate values for stock item, a new window opens as shown below.
Update the following details.

Godown: Choose Godown from the list of Godowns.

Rate: Enter the rate of stock item

Per & Amount values are automatically calculated based on quantity and rate amount.

Stock item rate in Tally ERP 9

After entering the required details, press enter to continue. Choose “yes” to save the details in
Tally.ERP9.

How to create multiple stock items

Path: Gateway of Tally.ERP 9 > Inventory Info > Stock Items > Multiple stock items > Create

Step 1: Under multiple stock items, choose create option as shown below image.

Multiple stock items in tally

Step 2: In next screen multi Stock item creation, enter the following details.

Under group: To update the different types of stock items with different category groups, choose under
group as all items.

Now update all the required details – Name of item, stock group, stock category, units, opening qty and
rates.

Create multiple stock items in Tally

Click on A:Accept to save the entered details in Tally.ERP 9 system

 4. GST in Tally

Tally - Enable GST in Tally.ERP 9

Refer below step by step procedure to activate GST in Tally.

Step 1: From Gateway of Tally, click on F11: Features or press function key F11.

Choose F11 Features

Step 2: Under company features options, choose Statutory & Taxation or press function key F3.

Choose statutory and taxation in Tally

Step 3: In next screen company operation alteration, enter the following details.

Enable Goods and Services Tax (GST): Yes

Set/alter GST details: Yes

 Activate GST in Tally

Step 3: When you enable “Yes” for Set/alter GST details, the following screen appears.

GST details in tally

Step 4: Now you need to update all the required details of GST.

State: It automatically displays state name based on the state you have updated in company.

Registration Type: Choose GST registration type as “Composition” or “Regular.

GSTIN/UIN: Update the Goods and Services Tax India (GSTIN) number, this GSTIN can be printed on
invoices.

Applicable from: Enter the date that GST will be applicable from for transactions.

Periodicity of GST: Enter the periodicity of GST as Monthly or Quarterly as per requirements of
company.

e-Way bill applicable: Choose this option as “Yes”

Applicable from: Enter the date that e-way bill to be applicable from

Threshold limit includes: It can be based on invoice value / taxable and exempt goods value / taxable
goods value

Threshold limit: Enter the amount value of threshold limit allowed

Applicable for intrastate: Choose option as “Yes”, if it is applicable to your state

Threshold limit: Enter threshold limit for interest

Enable tax liability on advance receipts: Choose “Yes” to activate tax liability on advance receipts

Set/alter GST rate details: Choose Yes to set or alter GST rate details at company level.

Enable GST classifications: Choose Yes to activate GST classifications.

enable GST in Tally ERP 9

After entering all the required details for activation of GST in Tally, choose “Yes” to accept the data and
save the details in Tally.
 5. Payroll in Tally

Tally - Payroll Configurations

To enable payroll configurations in Tally, use the following steps.

Path: Gateway of Tally > F12: Configure > Payroll Configurations.

Step 1: From Gateway of Tally screen, choose F12: Configure option or press on function key F12.

payroll configurations in Tally

Step 2: Under configurations menu, choose the option “Payroll Configurations”

Choose payroll configuration in tally

Step 3: In next screen payroll configuration, update the following details.

Add notes for employees: Choose “Yes” to add notes for employees

Show statutory details: Set “Yes” to enter PF, ESI, and PF PAN details in the employee master record.

Provide passport and visa details: Set “Yes” to record the information regarding to employees passport
and visa details.

Show contact details: Set “Yes” to display contact details of employees

Show resigned/retired employees: Set “Yes” to show the resigned and retired employees in payroll
configuration.

Show employee display name: Set “Yes” to display an employee.

 Payroll Configuration in Tally

Tally - Enable Payroll

The activation of payroll in Tally is a one time configuration setup. Refer below step by step procedure
to enable payroll in Tally ERP 9.

Path: Gateway of Tally > F11: Features > F1: Accounting Features.

Step 1: From the Gateway of Tally screen, choose the option F11″ Features.

F11 features in Tally

Step 2: Under company features, choose the option “Accounting Features” or press function key “F1”.

Accounting features for payroll in Tally

Step 3: Under Accounting features options, maintain the following details.

Choose the option”Maintain Payroll” as Yes to enable payroll in Tally.ERP 9.

Choose the option “Maintain more than one payroll or cost category” as Yes to maintain more than one
payroll for a company and separate cost categories are created and allocate to the employee cost.
Tally - Enable Payroll Statutory

Path: Gateway of Tally > F11: Features > F3: Statutory & Taxation.

Step 1: From Gateway of Tally, choose the option F11: Features.

F11 Features for Payroll in Tally

Step 2: Under company features, choose statutory & taxation option.

Choose statutory and taxation for payroll in Tally

Step 3: Under Statutory & Taxation, activate the following details.

Enable payroll statutory: Set the option as “Yes”

Set/alter payroll statutory details: Set the option as “Yes”.

enable payroll statutory in Tally

After enabling payroll statutory, press enter.

Step 4: Under Payroll statutory details, enter the required details of provident fund, employee state
insurance, National pension scheme & income tax of company.

payroll statutory details in Tally

After entering the details, press enter to accept the screen and go back to Statutory & Taxation screen
and press Ctrl+A to save the details in Tally.

Tally - Define employee category

An Employee category in Tally classify the employees of a company based on the projects or its
locations.

Create Single Employee Category

Path: Gateway of Tally => Payroll Info => Employee Categories > Single Category > Create
Step 1: From the Gateway of Tally screen, choose the option payroll info.

Step 2: Under payroll info features, choose employee categories as shown below screen.
Step 3: Under employee categories, under single category – choose create option to create singe
employee category in Tally.

Step 4: On employee category creation, enter the following details.

Name: Enter the name of employee category to be created in tally.erp 9.

Allocate revenue items: Choose this option as “Yes” for assigning the revenue related transaction values
for employees under this employee category

Allocate non-revenue items: Choose this option as “Yes” for assigning the non revenue related
transaction values for employees under this employee category.

Choose A:Accept to save the details in Tally.

Create multiple employee categories in Tally

Path: Gateway of Tally => Payroll Info => Employee Categories > Multiple Categories > Create
Step 1: Under multiple categories, choose create option.

Step 2: On multi employees creation screen, update all the required details as shown below screen.

After entering the details, choose A: Accept to save the details in Tally.

Tally - Define employee Groups

Path: Gateway of Tally > Payroll Info > Employee groups > Single Group > Create.
Step 1: From Gateway of Tally screen, click on payroll info.

Step 2: Under payroll info, click on “Employee Groups” option.

Step 3: In next screen employee groups, click on the option create under single group.
Step 4: Under employee group creation screen, enter the following details.

Category: Select the employee category from the list.

Name: Enter the name of employee group

Under: Choose the group as primary group.

After maintaining all the required for employee group creation, press enter and click on Yes to accept
the data in Tally.ERP 9.

How to create multiple employee groups in Tally

Here we are going to create multiple employee groups in Tally under one screen.

Path: Gateway of Tally > Payroll Info > Employee groups > Multiple Groups > Create.

Step 1: Under multiple groups option, click on create option to create multiple employee groups in Tally.

Step 2: Under multi employee group creation screen, enter the following details.

Under Employee group: Choose this option as “All items”, so that you can assign different employee
categories for employee group. You are allowed to assign one employee groups to one employee
category.

Update all the required details of employee category, name of employee group and under group

After maintaining all the details of multi employee groups, press enter and choose “Yes” to save the
details in Tally.
Tally - Create Employees Master Data

In Tally.ERP 9, all the activities of human resource management employee details can be maintained in
employee masters data.

How to create single employee in Tally

Path: Gateway of Tally > Payroll Info > Employees > Single Employee > Create.

Step 1: Under Gateway of Tally, click on the option “Payroll Info” as shown below.

Step 2: Under Payroll info features, click on the option “Employees” to create new employees in
tally.erp 9.

Step 3: Under single employee option, click on the option “Create”.

Step 4: In the next screen, employee creation update the following details.

Name: Enter the name of an employee, this name will be displayed in reports.

Display name in report as: To display name in reports other than given in name field, enter here

Under: Choose the employee group under this field.

Date of joining: Enter the joining data of an employee.

Define salary details: To enter the salary details of an employee, choose this option as “Yes”, and the
salary details creation screen will be open. Under salary details screen, you enter all the details of an
employee salary i.e. basic pay, allowances, PF, tax, etc.

After entering employee salary details, press enter to continue.

Step 5: Under general information, update the required details of an employee i.e. Employee number,
designation, function, location, gender, date of birth, blood group, father’s/mother’s name, address and
contact details.

Step 6: To enter the bank details of an employee, choose the options as “Yes” for the field provide bank
details. Now the new screen bank details will be opened. Enter the required bank details – Account
number, IFSC code, bank name, Branch and transaction type.
Step 7: Enter statutory details of employee – PAN no, Aadhaar number, Universal account number, PF
account number, ESI number, etc.

Step 8: Under passport and visa details, enter the all required details of employee passport like Passport
number, country of issue, passport expiry date, Visa number and Visa expiry date.

Step 9: Enter contract details of employee including work permit number, contract start date and end
date.
After entering all the required details, press enter and choose “Yes” to accept the entered employees
data in Tally.ERP 9.

Tally - Create Simple Payroll Units

Payroll units in Tally is an unit of measurement that are used to calculate pay heads. Payroll units can be
divided into two types, i.e.

1. Simple Payroll Units

2. Compound Payroll Units
Payrolls are calculated and computed based on the simple payroll and compound payroll units.

How to Create Simple Payroll Units in Tally

Simple payroll units refers as individual or single units such as Hours, Day, Week, Box, Nos, etc.

Step 1: From Gateway of Tally, under masters option click on payroll info.

Step 2: Under payroll info features, click on the option units (work).

Step 3: Under Units (work) option, click on the create to create new simple payroll unit in Tally.ERP 9.
Step 4: In the next screen unit creation, enter the following details.

1. Type: Choose the payroll unit type as Simple.

2. Symbol: Update the symbol of unit
3. Formal Name: Update the name of an payroll unit
4. Number of decimal places: Enter the number decimals applicable.

After entering all the required details of payroll units in Tally, press enter and click on Yes to save the
data in Tally.ERP 9.

Tally - Create Compound Payroll Units

How to Create Compound Payroll Units in Tally

Compound payroll units in Tally refers as the combination of two simple payroll units, such as Hour of
60 minutes, Month of 30 Days, etc.

Path: Gateway of Tally > Payroll info > Units > Create

Step 1: From Gateway of Tally screen, click on the option payroll info under masters.

Step 2: Under payroll info features, click on option”units (works).

Step 3: Under Units (Work), click on create option to create new compound payroll units in Tally.ERP 9.
Step 4: In the next screen unit screen, enter the following details.

Example: 60 Minutes = 1 Hour i.e.

Type: Choose the payroll unit type as “Compound” and press enter to continue.

First unit: Under first unit option, you need choose the unit from the list of payroll units.

Update the conversion factor, here we have mentioned conversion factory as 60

Update the second unit from the list as Mins.

After entering all the required details of compound payroll, press enter and click on yes to save the data
in tally.