KITGUM BUSINESS

INSTITUTE
NATIONAL DIPLOMA IN ACCOUNTANCY
COMPUTERIZED ACCOUNTING LECTURE NOTES- TALLY ERP 9
Topic: Creation of Company in Tally
By Oloka George Okwir Tel: 0779949173

2.0 HOW TO CREATE COMPANY IN TALLY ERP9

To start accounting with tally   the first and foremost thing you should know is, how to create
company in tally ERP9. For users operating multiple businesses can create several companies in
Tally erp 9 software at single cost. Nowadays Tally erp 9 has outgrown from the concept just
accounting software. it helps you for better statutory compliance by updating statutory files
available at tally solution website. You can operate tally remotely using tally.net features,
process payroll and many more features are updating regularly by tally solutions.

How to create company in Tally ERP9? An elaborate tutorial

Let’s start from the very beginning.
Step I
Double click on tally icon from your desktop.

If you are using Tally first time after installation, will have a screen like below. Inside company
info menu on the right side of the screen like below.
Step II
You are in company info menu. Now, How to create company in Tally erp9?. To do that Select
Create company from the menu and Hit Enter Key.

Company Creation screen will be displayed.

In

this company creation screen, you should enter all the details of the company. Let us explain each
section separately.

2.2 To enter Company information follows these steps:

Field Name Values
Directory Specify the path where the Company data will be stored. The Default data directory of
Tally.ERP 9 is C:\Tally.ERP 9\Data. If you want to keep your data in another location, you can specify
the location; for example, if you want to keep your data in your ‘D drive’, specify the path D:\
Name Enter Name of the Company.
Mailing Address Address of the Company.
State Select the State Name from the pop-up list.
Pin Code Enter your city PIN code.
E-mail Address Enter the E-mail Address of the Company.
Currency Symbol Currency symbol will be displayed in which the account books of the
company are to be maintained. By default, it shows ‘Rs’ as currency
symbol.
Maintain Depending on the activity of the company, you can maintain the records
in two ways: 1. Accounts only 2. Accounts with Inventory
Tally Vault Password If you want to secure your Company from other users, even from
selection, provide a password here. A copy of the Company will generate
with encrypted format in name.
Use Security Control This option enables you to restrict user-wise data access. Say ‘Yes’ to
create ‘administrator’ who has all rights. If you do not wish to maintain
security control, select ‘No’.
Base Currency Symbol The currency symbol appearing against currency field will be displayed
here.
Formal Name Full name of the currency is displayed here. For example, For currency
symbol ‘Rs’, the currency name is displayed as ‘Indian rupees’.
Number of Decimal Places Decimal place of currency is shown here because it will not allow
you to lose part of an amount due to change of currency value.
Show Amount in Million Symbol This option maintains visual clarity of large amounts. If you want
to show the amount in millions, say ‘Yes’. To show in lakhs, say
‘No’.
Is Symbol Suffixed to Amount? To put currency Symbol before amounts say ‘No’; to put after the
amount, say ‘Yes’.
@ Keys Used for Saving Information:
Enter (to save the information)
Ctrl + A (save the record information directly from any field position).
More Elaborations
Book and financial Year Details.
Financial year from: Type financial year in which you want create a company. Suppose you may
be starting company on September 01 2016, You should enter the financial year from as
01.06.2016.

Book beginning from: Most of the companies have a book beginning date same as financial

year starting date. But may differ for companies
 Which are starting in the middle of the financial year.
 Companies which are migrating from Manual Accounting to Tally ERP9 somewhere
in the middle of the financial year.

Security Control In Tally ERP9 at company creation screen.

Tally vault password: This is for security purpose, by enabling this, Tally ERP9 Convert tally data
in to encrypted format. Encryption means convert data from recognized format to
unrecognized format.

For example: Your password is – tally123@ system will encrypt this password something like
@54gh$%hf4&*$$$#. The benefit is that, it is very difficult to read the data even if our data is
stolen.

By entering Tally Vault password you can prevent unauthorized access of company data.

Now in Latest Tally ERP9, There is a password strength indicator, which will help you to set a strong
password. Red colour indicates a weaker password where as peach orange color: fair, Yellow is
good and Green color indicates a strong password.

Keep the password in writing in a safe place to prevent future password lost. You will have to enter
this password each time you open company.
Be careful, forgetting your password, you will not be able to use tally data.

Use Security control: By enabling this you will get a complete control over your data, you can assign
users for specific purposes, for example
 You can assign data entry operators who can access only voucher entry screens.
 You can assign billing clerks who can access only Sales invoice voucher
 You can assign Financial managers who can access financial data’s and reports as the
administrator control his access.

In this section you will be asked administrator name and password. Tally will give you a warning
message’ Forgetting your password will render your data inaccessible!!’, before moving onto
next option see below image.

Use Tally Audit

Features: By enabling this option, the administrator will have the privilege of an auditor, He can
track the changes made by users.

Disallow opening in Educational Mode: You cannot open the company if the program is in

educational mode. As we all know Tally is freely available for educational purposes, in which
you can enter transactions only in first and last date of every month.

Base currency information in Company creation screen.

This is the currency information Screen, Almost all field are auto filled and can make changes if
required. The following fields are available in this section.

Base Currency Symbol:  This the currency symbol of the country you have selected. No need to
change it if you are using the same currency for accounting.

Formal Name: This is the formal name of the currency you are using.

Is symbol suffixed to amounts: asking whether currency symbol is required prior to amount like
$45
Add space between Amount and symbol: This is like $ 45, a space in between currency symbol
and amount.

Show Amount in millions:  if you set this option Yes, Tally will display amount in millions that is
in Balance sheet or other report, Amount for example 10000000 will be shown as 10. One
million is equals 1000000.

Number of decimal place: Usually 2 decimal places are using, for using Paisa in Indian currency
we use 2 decimal place like   Rs 99.99, Ninety nine rupees ninety nine Paisa.

Word used to print decimal portion of amount:  This is used in printing, in Indian currency
decimal portion is said to be Paisa. Set it as per your formal name of decimal value in your
currency. .For USD it is cents. Hundred cents make one dollar.

Decimal place for printing amount in words: If you set this option 1 in Indian currency, when
printing 75 Paisa. Prints seventy Paisa. if you set 2 then it will print second fraction like seventy
five Paisa. Set this option to Zero if you are not sure.

Step3
Accept the screen. If you have entered all details, tally vault password will be asked. Enter Tally
Vault Password here.

You will be asked user name password you have entered in security control. enter that as well.
Tally ERP9 will create a company and direct you to the Menu Gateway of Tally Where you can
create masters and enter transactions.

On the left side you can see the current period, current date, Name of the company ,Name of
last Entry etc. Just under Name of the company you can see the name of newly created
company in boldface. This means that listed company is loaded.
On the right hand side of the screen, there is menus where you can create company masters
and enter transactions.
You can load Tally.ERP by using...
1. Shortcut stores on the Desktop
2. Start >> Program >> Tally.ERP 9

The first Screen is called Gateway of Tally.ERP.

Gateway of Tally is the screen that appears on selecting a company. The Gateway of Tally menu
differs based on the type of company selected. An Accounts Only Company has a different Gateway
of Tally menu from that of an Accounts-with-Inventory Company.

The Gateway of Tally menu of a company appears as shown below:

Main
Area (Ctrl+M)
The Main Area is separated into the following two areas:
>> Left-hand side area
>> Right-hand side area

The left-hand side area in the Main Area provides information of Current Period, Current Date and
List of Selected Companies and Date of Last Entry.
In the right-hand side, you get more detail information on the Company. The Company information
menu consists of the following:
1. List of activated Company (Company already created)
2. Masters (for defining Ledger, Group, Sub-group, Inventory)
3. Transactions/Voucher Entry (Recording Transactions)
4. Reports (Viewing the Balance Sheet, P&L and other Reports)
MODIFICATION OF COMPANY
You can Modify your Company at any time, and for any information given while Creating the
Company.
Go to Gateway of Tally
1. Select F3: Cmp Info. (ALT+F3) from the button bar
2. Select Alter and press Enter
DELETION OF COMPANY
To delete a company, you have to load the company first.
1. Select F3: Cmp Info. (ALT+F3) from the Gateway of Tally to proceed to the Company Information
menu.
2. Select Alter and press Enter.
3. Select the company to be deleted. The Company Alteration screen is displayed.
4. Use Alt + D to delete. Tally.ERP 9 will prompt for a confirmation on deleting the company.
5. Press enter to delete the company.
Note: Deletion of a company is irreversible. The company is permanently deleted from the system.

SHUT (CLOSE) A COMPANY

You can Shut a Company in Two ways – either using the button
F1: Shut Cmp ( Alt+F1) from Gateway of Tally.ERP
OR
By pressing Enter on Shut Company option from Company Information Menu (Alt+F3).

COMPANY SELECTION
To select a Company click F1 : “Select Company” button ( or use F1 function key). By default it will
show the list of existing companies with their names, company number and financial period. The
screen appears as shown here: