Professional Documents
Culture Documents
Accounting Vouchers
Session -2
Vouchers
In computerized accounting, we record transactions through voucher entry. A voucher is a
basic recording document. To input any data in Tally you must use a voucher. Inputting data
through the voucher entry mode may be called creating a voucher or voucher entry.
Tally is pre-programmed with a variety of accounting vouchers, each designed, to perform a
different job.
Tally gives us two types of voucher:
1. Conventional
2. Unconventional
Conventional Vouchers
Conventional vouchers are used to record all accounting transactions. These vouchers directly
affect to your final Account. It tally we have different types of conventional vouchers:
Unconventional Voucher
These special vouchers are used to record provisional or non-accounting transactions. They
don’t clutter the main books of accounts with unnecessary entries and at the same time make
the information available. These vouchers enable valuable reports in terms of provisional
accounts and forecasting. This aspect of reporting has been dealt with under a separate section
‘Scenario Management’.
Types of vouchers (Unconventional)
Vouchers Shortcuts Functions
Memos Ctrl+F10 To Create memorandum voucher
Rev Jrnl F10 To Create Reversing journal voucher
Optional Ctrl+L To Make a voucher as Optional voucher
Post dated Ctrl+T To Make a Voucher as Post Dated Voucher
Accounting Vouchers
Memo Voucher
This is a non-accounting voucher and the entries made using it will not affect your accounts.
That is, Tally does not post these entries to ledgers but stores them in a separate Memorandum
Register.
Reversing Journal
Reversing journals are special journals that are automatically reversed after a specified date.
They exist only till that date and are effective only when called for in reports like the Balance
Sheet. These are used in interim reporting in the course of the financial year where accruals are
required to be reported. These accruals are usually short term and are cleared in the subsequent
period. However, to get a proper perspective, decision makers require the reports with full
impact of all aspects and transactions
Use of optional vouchers
1. If a transaction has not been completed, you may not want it to affect the accounts.
But you want to record it so that you simply modify the voucher and remove the
‘Optional’ mark by ‘Regular’ it. Display the voucher in ‘Alter’ Form and click on
‘Regular’.
2. You might want to see the impact of transactions without actually posting them.
Optional vouchers allow you to do this.
Post-Dated Vouchers
While entering vouchers, you can post-date them, an tally will not update the ledgers until the
date in question. This is most useful for entering transactions that take place on a regular basis.
For example, if you pay for something by installments, you can set-up the payments in
advance, and tally will only enter them in the ledgers as they fall due. Mark vouchers ‘Post
Dated’ by [CTRL]+[D] or click on the button. The button toggles with ‘Regular’
Scenario Management
Scenario management is a management tool that enables different displays of accounts and
inventory related information, by selectively including certain types of vouchers without
affecting the source date. It is useful in generating provisional report, where entries are not
actually made in the main books. It is also a useful forecasting tool i.e. you can forecast the
expense using provisional Vouchers and include them in your reports.
The vouchers that are used in Scenario Management are:
Optional Vouchers
Memorandum Vouchers
Reversing Journals
Creating a Scenario
Set Use Reversing Journals & Optional Vouchers in F11: Company Features to Yes.
Gateway of Tally→ Accounts Info→ Scenario→ Create
1. Name
Give a suitable name to the scenario. In this case, it is Provisional.
2. Set Include Actual to Yes
3. Set Exclude Forex Gains/Losses Calculations to yes if you do not want the
unadjusted forex Gains/loss element to appear in the scenario
4. Set Exclude Inventory
Tracking Calculations to Yes if you do not want the sales/purchase bills pending
element to appear in the scenario
5. Include
From the list of vouchers, include the type of vouchers required. Notice that it picks
up the voucher Types created for this company. Provisional vouchers and Regular
vouchers that are marked Optional are permitted for selection.
6. Exclude
Exclude from the list of vouchers already included in the type of vouchers that you
do not want to affect this scenario. This option is used in Alter mode and hence is
discussed under Alter/Display scenario Information.
Accept to create this scenario.
Alter or Display Scenario information
1. Gateway of Tally→ Accounts Info. → Scenario→ Alter
2. Select the scenario to alter from the List of Scenarios
The information given while creating the scenario displays and you can alter it.
Exclude
Use the Alter mode when you do not want a selected included voucher to affect the
scenario, anymore. It is easier to put the selected voucher in the Exclude List, rather than to
remove it from the include List.
Using Scenarios
Create a Reversing journal Entry for the scenario as follows.
1. Gateway of Tally→ Accounting Vouchers→ F10:Rev Jrnl
2. Select Reversing Journals from the list.
3. Debit Depreciation and enter the amount
4. Credit Provision for Depreciation
5. Enter narration if any.
6. Accept the voucher.
Accounting Vouchers
Entering Voucher
The Voucher Entry Screen
Buttons toolbar
Displays buttons that provide quick interaction with Tally. Only buttons relevant to the
current task will be visible.
Advance Accounting Features [F11]
Accounting Features<F1>
General
Integrate Accounts with Inventory
Effect on Balance Sheet and Profit & Loss Account
The option in F11: Accounting Features>General has a significant effect on the Balance
Sheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures
from the inventory records and provides a drill down to the stock registers from the Balance
Sheet.
Multi Currency
Allow Multi Currency
For many organizations, globalization of business has necessitated working with more than one
currency. Transactions are often made in currencies other than the home currency. Such
transactions have to be recorded either in the home currency or in the foreign currency. It they
are recorded in home currency, the rate at which the foreign currency is exchanged for the
home currency should be recorded as well. Sometimes you need to record the transaction in
foreign currency itself. This would arise when you maintain the balance of the concerned
account in foreign currency. Tally uses the term base currency for the currency in which your
account books it kept (typically in home currency). Foreign Exchange is used interchangeably
with foreign currency. Tally has attempted to make the complex task of handling multiple
currencies very easy for you. You would find some new ways of working with multiple
currencies, automatic calculations of exchange rates, automatic conversion of any currency
used to record a transaction to the currency of the account, etc.
Display/Alter Currency
If you do not have multiple currencies, the Alter screen is identical to the Display screen. When
you have more than one currency, select the currency whose details are to be display, Altered.
Advance Accounting Features [F11]
Rates of Exchange
The screen always comes up in Alter mode:
Standard Rate : The standard rate is used to calculate variances from the actual
transaction rates. You may choose to leave it blank.
Selling Rate
Specified Rate : This is the rate obtained form the daily newspaper or your banker. If you
input this rate before any transaction entry, while entering a foreign
exchange transaction, this rate will be brought up by default. (you nay
still change the actual rate). Selling rate is your selling rate (as opposed
to bank’s selling rate. Banks will buy currency from you in this case)
used for receipt voucher entry where you receive foreign exchange.
Buying Rate
Specified rate : this is the rate at which you would buy the foreign currency (as opposed
to bank’s buying rate. Banks will sell currency to you in this case).
Hence, it is used in payment vouchers.
Invoicing
The default invoice formats have a variety of configurations options. Using them you may print
your invoices, You may not need to create new invoice formats. It is recommended that you
attempt to configure the default invoice itself. However, should you finally feel that the invoice
does not meet the needs; you can design a new invoice using Tally’s Definition Language
Report Designer. The TDL is quite an advanced language with which you can create new
reports and screens. You may even modify existing reports and screens. However, it is a
specialist’s job and would require advanced training.
Debit Note/ Credit Note
Debit note is entered when you make purchases return or have short-billed a customer or your
supplier have granted credit to you on account of rate difference, discount etc. Credit Note is
entered when you make Sales Return or discount/Rebate or due to some reason now you like to
square off a debit balance.
Outstanding Management
Maintain bill wise detail
Yes, if you wish to give a bill-wise break-
up of the ledger balance including the
opening balance. The following
information for all pending bills of the
previous accounting period would be
required when entering the Opening
Balance:
Balances
Interest can be calculated on all outstanding balances whether debit or credit. You would like to
select only credit balances in case of accounts like bank accounts if you want to know the
interest that the bank might charge on overdrawn balances.
Applicable from
The date from which the rate is applicable to a specific date. If left blank then it is up to the last
date.
Rounding off
Whether the amount is to be rounded off normally or upward or downward. You need to give
the rounded to amount. E.g. round off upwards to the nearest 10.
The advanced parameters are particularly useful where interest rates change from time to time.
You may want to set your Bank Ltd interest parameters as follows:
Budgets
Tally allows you to create multiple budgets. There could be a budget for specific purposes, e.g.,
for the bank, for the head office, optimistic budget, realistic budget, pessimistic budget, etc.
Departmental budgets can also be created, e.g., Marketing Budget, Finance Budget, etc.
As usual, you first create budgets. You can of course alter them.
Budget figures are used to compare against actual and to display
variances. This is done by bringing up anew column when
displaying a statement and selecting the appropriate budget.
We shall now go through the creation and alteration of budgets.
Gateway of Tally→ Account Info.→ Budgets
Operate Budgets
Gateway of Tally→ Account Info.→ Budgets Create
Name
Give the budget a name, in this case, Corporate Budget. As you may have other budgets as
well, the name distinguishes them.
Under
In the true Tally tradition, you can have a hierarchical budget set-up. At the top level is the
Primary budget. You can set up more than one Primary Budget.
Period of Budget
Specify the period of the budget. The period could be a month, a year or any period starting
from any date top any date.
Advance Accounting Features [F11]
Set/Alter Budgets
You may want to set the budget for groups of ledger accounts or for ledger accounts or
for ledger accounts individually or all of them. We shall take up budget for group only.
Follow the same process for same process for setting budgets for individual ledgers and
const centers.
On closing Balance
Where you wish to monitor the balance of the accounts and are not too keen on
the transactions., e.g., balances of Bank Accounts, Balances of debtors.
Amount
The budget amount for the account.
Type of Budget
Under the Type of Budget a pop-up of two different kinds of Budgets appears.
On closing Balances
Where you wish to monitor the balance of the accounts and are not too keen on
the transactions. For e.g., balances of Bank Accounts or Debtors. This means that
the magnitude of transactions is ignored. You are concerned only with the amount
remaining in the account. This is useful for Balance Sheet items.
On Nett Transactions
If you are concerned with the magnitude of transaction amounts use this option.
Revenue items reflect the transacted amounts. Why nett? This is because you do
not expect to have a negative figure in such accounts and if they exist, they are
adjustments. E.g., an expense account like travel will always have debit entries
only unless there is a reversal due to error or charge to a customer.
Caution
When using Net Transactions, the Budget closing Balance actually get adjusted
even if you have not selected this type. The figures in the Profit & Loss Account
will reflect the Closing Balance figures.
Note: For comparing closing balance figures in final statements, especially the Balance sheet items, viz.,
assets and liabilities, choose Closing Balances.
Alter/Delete a Budget
Alter Budget
Accounts Info.→ Budgets→ Select the Budget to Alter
If you select to alter the Corporate Budget of Groups of ledger accounts, say Yes
to ‘Set / Alter Budgets of Groups’. The default is No.
The same sub-screen for Group Budget pops up for alteration of the figures. Alter
necessary fields and accept.
Delete a Budget
From the Menu go to Alter select the Budget and press [ALT]+[D] to delete it.
Budget Variance
The Trial Balance and Group Summaries carry an additional ‘Budget Variance’ Button
(Alt+B) which is active if Budgets are active and at least one budget exists. Pressing this
button will create an automatic display of Budgets, Actual with Percentage, and Variance
form budget with Percentage in three columns. This is a first-step offering of the facility
and is being fine-turned to enhance its range and diversity of options which you should
see shortly.
Cost/Profit Management
Maintain cost centers
Introduction
Tally’s concept of Cost Centers allows an additional dimension to a transaction. By
providing cost centers, a transaction can be allocated to it which would then enable
extraction of all transactions for a cost centre. Tally gives you the cost centre break-up of
each transaction as well as details of transactions for each cost centre. When you also
allocate income to the units, they become Profit Centers. You can now obtain a Profit
and Loss account of each such Profit Centre. For your purposes, the terms of cost Centre
and Profit Centre are interchangeable.
Advance Accounting Features [F11]
.
Examples of cost centers:
1. Departments of an organization, e.g., Finance, Manufacturing, Marketing,
etc.
2. Even individuals like, Salesman A, Salesman B, etc.
You may allocate expenditure incurred on sales by the salesmen, as well as the sales
generated by them, directly Of their cost centers. The allocation is done online at the time
of transaction entry itself. By allocating your expense and sales transactions to the
salesmen you have set up a valuable information system to know the efficiency and
effectiveness of the salesmen.
Examples: Salary paid Rs. 12000/- (Salesman A- Rs. 4,000/-, Salesman B Rs.6000/-,
Salesman C Rs. 2000/-
cheques so that the positioning is accurate. The placing of the cheque n the printer
also determines the printing. Trial could be made on photocopies of a cheque before
using an actual cheque leaf.
Exiercise
1. Create the Budget fo indirect Expenses (group wise) worth Rs. 35,000 on closing
balance the name of expenses Budget.
2. Create the Cost Centres and Category (Allocate Revenue Items –yes):
a) Cost Category : Departements
b) Cost Centers : (i) Marketing
(ii) Administration
3. June 5: Paid Advertisement Expenses Rs. 15,000 by cheque.
a) Rs. 6,000 for Administration Department
b) Rs. 9,000 for Marketing Department
4. Check your budget variations.
5. June 11: Sold goods to Vaibhav of Rs. 20,000 and Rs. 5,000 received at th time of
sale. Raj computers charge interest will be charges @ 12% p.a. If payment
received after 30 days from the date of sale.
6. July 12: Received Rs. 5,000 from vaibhav.
7. July 20: vaibhav paid all the reaining balance amount.
Voucher Types & Class
Session -4
Voucher Types
Introduction
A voucher is thr primary online document for recording transactions.
Transaction recording and analysis are greatly facilitated by having
specific formats for different for different types of transactions. Tally
provides 18 different predefined voucher formats or what it calls
predefined types of vouchers. These are used for recording various
transactions.
The predefined voucher types can be displayed as follows:
Gateway of Tally→ Display→ List of Accounts→
<Ctrl>+<V>[voucher Types]
How To Manage And Operate Voucher Types
Tally acknowledges the special requirements of some users for more
voucher types. These arise in cases like when you need the same
voucher but in different names or separate series of numbers.
Examples include Cash Payment Vouchers and Bank Payment
vouchers where the relevant predefined voucher is payment voucher. You may have two
or more sets of Sales vouchers for different kinds of sales transactions e.g. credit Sales,
Cash Sales, etc.
You would need to alter a voucher type to change default settings for different
information appearing in vouchers. Using [F12] can further configure a voucher.
Note: A new voucher type must assume the function of a predefined voucher type
Name
Give the name of the new voucher type, e.g., Bank Payment Voucher.
Type of Voucher
The type of voucher should be any one of the predefined voucher types (already listed in
introduction). The new voucher type would inherit the properties of this predefined
voucher type. It would function exactly like the predefined voucher.
Voucher Type & Class
Abbreviation
An abbreviation is required particularly for unformatted reports, which do not use
compressing techniques. (Tally allows printing of both formatted and unformatted
reports). In the Example, give ‘BPymt’ as the abbreviation. Though there is no restriction
on the length of the abbreviation, it should preferably be five characters or less.
Method of Voucher Numbering
None
This will disable numbering of such vouchers. If you select this method, no
further information is required.
Manual
This method will allow you to number voucher of this type yourself. It does not
check for sequence of the numbers and permits you to specify anything you wish
in the voucher number field. However, you may choose to prevent entry of
duplicate numbers. If you do, enable the next field ‘Prevent Duplicates’.
Note: Prevention of Duplicates is possible if you enable the option at the time of creation. You may enable
it later (by alteration) only if there are not transactions of this voucher type.
Automatic
This method is both flexible and exhaustive. Use it carefully to give you your
desired numbering system. Select this option to let Tally number the vouchers
automatically for you. You must give the following additional information:
Use Advance configuration
Press Y to define additional information about voucher type. It will show you a new
window where you can provide following information.
Starting number : Give the number for the first voucher. Usually it is
1. You can set it to any number you want.
Width of Numerical Part : You may leave it blank to let Tally automatically
adjust the width according to the number. You may
keep a fixed width, e.g.,3.
Pre fill with ZERO : when the width is specified, the digits before the
number is blank if ‘NO’ and zeroes if ‘yes’. E.g.
0010
Restart Numbering Voucher : Numbering may be restarted with the starting
number (as specified) at intervals selected by you-
Monthly, Yearly or Never.
Prefix Details : If you want the voucher numbers to be prefixed with
some fixed information, give the information here.
You may give your company Name/month name.
The numeric portion begins immediately after the prefix information. Therefore, be sure
to give a space or a slash ‘/’ or some such character should you want a separation,
Suffix Details :you can also give fixed suffix information for the
voucher number. The same rules and effects as for
Prefix details apply.
Use EFFECTIVE dates for vouchers
Select Yes if you want to enter effective dates for vouchers. You would opt for this if you
have instances where a transaction under consideration for overdue/ageing analysis is
recorded currently but will take effect from another date. If effective date is entered, the
overdue/ageing will be considered from the effective date and not from voucher date.
Use common narration
Select Yes to give a common narration for the entire voucher, Tally vouchers can have
multiple entries. Hence, you may wish to give a common narration for all the entries of
the voucher or a separate narration for each entry or both. Select Yes even when you want
both. Select NO if you do not want a common narration.
Narration for each entry
Select Yes if you want to give a separate narration for each entry of a voucher. This
would be applicable for a multiple entry voucher where you want separate details for each
entry. Select No if you don’t want separate narration for each entry.
Print after saving voucher
If you want print every voucher entering it, select Yes, else select No, This is suitable for
an online environment where you use the Tally printed Voucher as the format voucher.
Voucher Classes
Voucher class is predefined voucher type profile that helps to automate & expenditure
voucher entry and minimize errors. Voucher Class enables the administrator to set the
control on the operators.
Voucher class is pre-configured template with defined accounting entries (like
Accounting Group, Ledgers, Cost Centers etc.) and allocation/ computation rules, Some
of the uses of Voucher Classes are:
Automatically select a ledger account (or proposes a specified ledger for quick
selection) in voucher entry.
Automatically round off the figures as per rounding off rules.
Automatically compute Tax, Duty and other allocations.
Voucher classes are available for all major voucher types.
Voucher classes ensures fast and correct data entry and provides more security (In
many cases the data modification is prevented)
Based on Quantity
In case of calculation based on the ‘total qty’ supplied. For Example, you may
have Freight or Forwarding charges as 2.00/Kg, and if the total qty supplied in the
invoice is 200.000 kg, then the amount should become400.00.The ‘value Basis’
will also need to be provided as ‘2.00/Kg’ or ‘0.50/Pc’ as the case may be.
On Current Sub Total
In certain environment, taxes are applicable on the Total Goods Value as well as
supplementary charges such as ‘Excise Duty’, ‘Packing Charges’ etc. Normally,
when the tax calculation method is specified as ‘On Total Sales’ (see below), the
calculation are based on the Total Goods Value only. When you wish the
supplementary charges to be include, then you would set ‘on Current Sub Total’
as the type of calculation.
On Item Rate
Typically used for both VAT as well as Excise Duty style calculations. Here, you
would have specified the Rate of Tax applicable for each Stock Item, and you
would want only those items to be used for calculation purposes which equals this
Rate of Tax. The advantage is to be able to mix multiple Tax Rate products in the
same Invoice, and yet get the correct ones picked up for each Tax bracket.
On Total Sales
The most common basis of Tax calculation is on the total value of goods/services.
This method would calculate using the sum of Stock Items used in the invoice.
Value Basis
Give the amount which is to be used for the Type of Calculation. For percentage,
you must use the symbol%. Hence, Tax on Sales is 17.5% on Item Rate to use the
rate given in the stock item. The method of Total amount rounding will round the
total invoice and put the difference in the Ledger name mentioned here.
Hence, the account Rounding Off will contain the sum that essentially rounds off
the invoice to the desired level.
Rounding Method and Rounding Limit have been explained already.
Remove if Zero?
This is q question to be answered Yes or No, essentially to permit Tally to ignore
the account and not to make any entry in it if its value is zero. If Yes, ensure that
you are permitted to make zero value entries in F11: Features. No will record the
invoice in the ledger account with nil amount. Under normal circumstances, you
will probably wish to set this value to Yes. However, in cases such as ‘Zero Rated
VAT’, You may wish to retain the Ledger Account line, even though the
calculation Yields a nil amount.
Now you can enter purchases using this class,
It will show you as follows
Exiercise
1. a) C reate Voucher Class “RST 8%” fpr Sales Voucher Type.
Include’ sundry debtors’ and ‘cash in hand’.
Default Accounting Allocation: ‘Sales 100%’
Additional accounting Entries: Sales Tax 8% on Total Sales
b) Create Voucher Class “RST 10%” for Sales Voucher Type
Include ‘sundry debtors’ and ‘Cas in hand’.
Default accounting allocation: ‘Sales 100%’
Additional accounting Entries: ‘Sales Tax 10% ‘ ‘on Total Sales’ &
‘Surcharge 4% on Tax’.
2. 25 july sold one computer using voucher class RST 8% Sales in cash @29400/-.
3. 31 july sold two computer using voucher class RST 10% Sales to Vasu Associates
@29200/-.
4. Create cost center class as follows
Jaipur- 50%
Kota- 25%
Ganganagar- 25%
5. 5 August paid Salary 25,000/- using cost center class through HDFC Bank
6. 10 August paid Rent 30,000/- using cost center class through HDFC Bank.
Inventory Master
Session- 5
Introduction to Inventory
If you want how many quantities you had Purchased/sold and how
much you have in your stock. You can do this in Tally. In company
creation/ Alteration menu you have select at maintain field accounts
and Inventory option. All stock related options would be
highlighted through this. The different inventory information that
you would provide to tally by way of masters are:
Gateway of Tally→ Inventory Info.
Basic of Inventory
Stock Groups
Stock items can be grouped together under stock Groups to reflect
their classification based on some commonality. Grouping would
enable easy location and reporting of stock items in statements.
Hence, items of a particular brand can be grouped together so that
you can extract stock of all items of that brand. For example, create
Stock Groups like books. Your stock items could then be Text
book, Drawing Book, Exercise book etc.
Gateway of Tally→ Inventory Info.→ Stock Groups
should have similar units to be ‘addable’. You obviously would not want to add
Kgs with Pcs (where you have a group like ‘Consumables’ and items like ‘grease’
and ‘rag cloth’ which are measured in kg and meters respectively). We select Yes
here because we want to create items like Drawing Books & Exercise Book etc
which at this point we feel would be addable and the total meaningful. You may
later set it to No, if you find that the totals do not make sense. It is, possibly, easier
to set it to No initially and later set it to Yes on assessing the item units in the
group.
Display or Alter a Stock Group
Gateway of Tally→ Inventory Info→ Stock Groups→ Single/Multiple Display
Or
Gateway of Tally→ Inventory Info→ Stock Groups→ Single/Multiple Alter
Select the Stock Group whose particulars you wish to display. When you display or alter
a stock group the information entered while creating it is displayed.
Delete a Stock Group
You can delete a stock group only if it does not have any children under it. The children
could be stock group or stock item or both.
Gateway of Tally→ Inventory Info→ Stock Groups→ single Alter
Press [ALT]+[D] to delete the stock Group
Note: You cannot delete a stock group from multiple mode.
Units of Measure
You will need to create units of measure for stock items. These can be simple units such
as numbers, meters, Kilograms, Pieces, or compound units, e.g. box, where, say, one box
equals ten pieces.
Creation of unit of measure
Gateway of Tally→ Inventory Info→ Unit of Measure→
Create
Type
Symbols are of two types: Simple and Compound.
Simple
Simple units are considered as stated by you and
Tally just checks for duplication and nothing else. If you wish to give unit symbol
that are single and not a combination of other units, select Simple. Tally defaults
to Simple and if you want to change to compound, use backspace from the
Symbol field and select compound from the popup list.
Symbol
Give the symbol o the unit, e.g., No., Mtrs. This symbol given by you is used in all
displays and printouts. We give the symbol ‘no’ (for numbers).
Formal Name
Give the formal name of the symbol. This explains the symbol, which is also used during
consolidation of data of different companies where the symbols might be the same but are
assigned to different Units. The formal name will be used to match them. Here we type
Number as the formal name for the symbol ‘no’.
No. of decimal places
If the unit will be used in fractions, say for a kilogram you may have to use grams as well,
give the number of decimal places. For kilograms, you would give 3 decimal places to
accommodate up to 999 grams. Hence, a measure 1 kilogram 865 grams will be 1.865
kilograms. For units like numbers, you do not normally want a decimal place and you can
specify 0 in such cases. You can specify 0 to 4 decimal places.
Compound Units
A compound unit is a relation between two simple
units. Hence, before you create a compound unit,
ensure that the two simple units have been
previously created. In the example here, we use
dozens as another simple unit (created as we did
nos). Now we must give the relation between dozens
and numbers as one dozen equals twelve numbers.
Note: use the up arrow or backspace key to position the highlight in the Type field. Select Compound from
the types of unit’s pop-up menu.
Voucher Types
This is exactly similar to voucher types under accounting section. Please refer to that
section. You may wish to alter existing inventory voucher types or create new ones based
on those existing.
Tally is pre-programmed with a variety of inventory voucher, each designed
to perform a different job. The standard vouchers are:
1. Receipt note voucher (Alt+F9)
2. Rejections-in voucher (Ctrl+F6)
3. Delivery note voucher (Alt+F8)
4. Rejections-out voucher (Alt+F6)
5. Stock journal voucher (Alt+F7)
6. Physical stock Voucher (Alt+F10)
Inventory Maintenance
Inventory maintenance covers whole many of accounting materials (physical
and monitory count.) This generally comprises of:
1. Enquiry and quotation for offer for sales and purchases.
2. Sales & Purchases order
3. Delivery and receipt of materials
4. Return of materials
5. Sales and Purchases invoice
6. Debit and credit notes
7. Tracking of Sales and Purchases order
8. Inventory Control
9. MIS reports
Exiercise
1. Alter your company informaton with “Accounts with Inventory”.
2. Enter the following inventory details:
S.N Nameof item Group Units Categor Godowns Op.Q Rate Value
o y ty.
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8. Net. Cable H/W Mtr. Tikaro Lalkothi 70Mtr 12 840
9. Processor H/W PC Intel Vaishali Nag 22PC 4,500 99,000
10. RAM H/W PC A-Tech Rajapark 18PC 1,050 18,900
11. Speaker Woofer Set Sony Vaishali Nag 7 PC 830 5,810
4,40,000
Advance Inventory Features [F11]
Session -6
General
Integrate Accounts with Inventory
Effect on Balance Sheet and Profit & Loss
account
The option in Inventory Features has a
significant effect on the Balance sheet and
Profit & Loss Account. If set To Yes, it
Brings the stock/inventory balance figures
from the inventory records and provides a
drill down to the Stock registers from the
Balance Sheet. If it is set to No, it ignores
the inventory books figures and picks up
manually entered closing stock balance. Stock records often contain compensation
errors caused by wrong allocation to items and the like. The feature enables
finalization of financial books without for reconciliation of stocks that may take
time.
Allow Zero Valued Entries
As we discussed in chapter -3 advance accounting features [F11].
Invoicing
Allow Invoicing
Enter purchases in invoice format
Invoicing or Sales invoicing is not very different from sales voucher entry. In fact,
you use the same voucher but select ‘As Invoice’ option to turn it into a sales
invoice. Purchase invoices are recorded through normal Purchase Voucher entry
and it does not have the provision of being converted into an invoice format for
entry purposes. However, you can print the purchase voucher as a Purchase
Invoice or even a Purchase Order.
Note: Ensure that you have activated Invoice Entry capability in F11: Company features.
Advance Inventory Features [F11]
Name
In the Name field, give the name of the location.
Alias
Give an alias for the name, if required.
Under
Give the location under which this location is to be sub-grouped. Use
[alt]+[C] to create the parent location. Select primary if it is not a child of
any location.
Allow Storage of Materials
Tally permits you to create a location/godown where you may not store materials at all
but treat it as a virtual location. Virtual location is useful in case like Head Office which
may have many different stock point under it that store materials. Hence, Head office acts
like a primary group location.
Displaying and Altering Stock Locations
Once created, stock locations can be displayed and altered in single and multiple mode.
You can delete a stock location via Single location Alter by pressing [Alt]+[D]. However,
you cannot delete a stock location with sub-location. The lower levels must be deleted
first.
Maintain stock categories
Stock Categories
The concepts is similar to Cost Categories. You may wish to refer to the Chapter on Cost
Categories to grasp the similarity/differences. This option will come up in the menu only
if you have opted for stock categories in [F11] comp. Features. Stock Categories offers
parallel classification of items.
Note: the stock query option under statements of Inventory Display will reveal the strength of this feature.
Creation of stock categories
Gateway of tally→ Inventory Info→ Stock Categories→ Create
Name
Give the name of the stock category. Here we wish to create a category LG,
Samsung, Philips etc.
Under
Specify whether it is a primary category or a sub-category of another category.
Select from the pop-up list. Here we select primary from the list (there is no other,
at this moment).
Use Alt+C to create a parent if you do not have the category you want in the list.
Buttons
F4: Parent
To change the parent ‘Under Category’ when you may have created sub-categories under
it. The change affects all the sub-categories created under the parent and they would
belong to the new parent.
F8: Skip Details
If the answer to the question ‘Under’ is to remain the default, which is the same as ‘Under
Category’ for all new names, than use this button. Your cursor wil not go to that column
which speeds up data entry. Use the following buttons to switch
to the respedctive masters for creation
Display or Alter a Stock Category
Gateway of Tally→ Inventory Info→ Stock Categories→
Single/Multiple Display
Or
Gateway of Tally→ Inventory Info→ Stock Categories→
Single/ Multiple Alter
Advance Inventory Features [F11]
Select the stock category whose particulars you wish to display. When you display or
alter a stock category, the information entered while creating it is displayed.
1. Display from this mode is for master information only. You will not obtain
any balances for a stock category here. Use the Display option from the
Gateway of Tally for display of balances and transactions.
2. In earlier days of computing, one would look at the master information for
balances. Tally believes that balances are a logical consequence of the
transactions; hence, they should be available with the transaction summaries.
You would find all summaries and details through the Display option in the
main Gateway of Tally.
Delete a Stock Category
You can delete a stock category only if it does not have any children under it. The
children could be stock category or stock item or both.
Gateway of Tally→ Inventory Info→ Stock Categories→ Single Alter
Pressing [ALT]+[D] to delete the stock category
Note: you cannot delete a stock category from multiple mode.
Reorder Level
Reorder level is that quantity in hand for a stock item, reaching which, you should
ordered your supplies. The importance of reorder level arises from the desire to have
sufficient stocks to service customer orders and at the same time not to have
unnecessarily high stocks. Therefore, the points to be considered in deciding reorder
levels are the lead time for suppliers to deliver stock, the delivery time specified by the
customer, and the stock in hand to satisfy orders in the meantime. In simple mode, Tally
accepts your specified quantities only. In advanced, Tally considers past consumption
patterns to suggest reorder levels. You can however, give your own levels. You may also
specify the minimum quantity that is to be place dfor each order in either simple or
advanced mode.
The purpose of specifying reorder levels is to obtain a report that indicates the stocks that
need to be ordered. Hence, we will specify and then obtain the report.
Specifying Reorder Levels
Gateway of Tally→ Inventory Info→ Reorder Levels
Select the Group of stock items for which to specify reorder levels
Note that for each time a reorder level and minimum order quantity can be Specified. If
you click on the simple reorder button, the consumption alternatives will not be available
and you will input the quantities.
For each item’s Reorder level and Minimum order Quantity the entry options are identical
and they are:
Level/Quantity
It requires input of quantity.
Or Consummation of Last
Here you are given the option to let Tally calculate the reorder level/order quantity based
on past total consumption for a chosen period. Past period suffered area: Days, Weeks,
Months and Years. Please note that it is not average consumption for the period but total
consumption. Give 0 if you do not want the previous consumption for an item.
Whichever is Higher/Lower
Select whether you want the higher of the two i.e., input level/quantity or calculated
Rounding Method
And specify whether the calculated quantity should be rounded and the method.
Obtain Reorder Status and Quantities to Order
Gateway of Tally→ Display→ Statements of Inventory→ Reorder Status
Select from List of Groups of Stock Items
In this case electronics in selected.
On selection:
Advance Inventory Features [F11]
This report gives you the reorder status for stock items under the stock group electronics.
To remove those items for which there is no order to be placed, click on the button
Reorder only.
In particular, you have the following information: Apart from knowing the quantity to be
ordered, you are able to move your cursor on the fields and drill down for more relevant
information.
Name of the Stock Item
Press Enter on this for suppliers of this item and the details of their previous supplies
Stock in hand
Drill down for Monthly inwards and Outwards Summary and further details.
Sales Orders Due
Hence, Free Stock Available for sale
Reorder Level
Drill down to the specification sheet for the item which you can even modiy!
Shortfall
As Calculated
Minimum Reorder Quantity
As determined from the specification. Drill down to the specification sheet.
Order to be Placed
Print this statement or sent it for action to place orders
Alter Reorder Levels and Minimum Quantities
There are two ways to alter/amend already specified Reorder levels and minimum order
quantities.
1. Gateway of Tally→ Inventory Info→ Reorder Levels
It’s a single menu without separate Create and Alter options.
2. Drill down in the Reorder Status Report
As explained above for the fields Reorder Level and Minimum Order Quantity drill down
these fields to amend specifications.
Purchases/Sales Management
Track additional cost of purchase
If you enable this option, you are allowed to obtain a break-up of purchase costs, without
the need to separately debits ledger accounts for expenses. Typically, on Purchases, one is
interested in total costs and the break-up is of interest for analysis (except for expenses
like VAT or modvat, which are reclaimable). In such cases, you do not want to pass
accounting entries for expenses, which are of no consequence other than lengthening your
ledgers. For Example; you purchase from ABC & Co. 10 Pcs of Widgets @20/-=200/-.
Expenses incurred= Tax-20/-, packing charges 15.40/-, Total Purchase cost 235/-. When
Track additional costs is enabled, you will pass the entry in either of following two ways:
Price Levels
Customers can be assigned to specific price lists, called Price Levels in Tally, so that only
the relevant price is used during entry of orders and invoices, before you begin creating
price lists, you should decide whether you want various reasons; e.g., different types of
customers like wholesale customers, retail customers, export customers and so on. Each
customer type could have a different discount structure. Write down on a piece of paper
the price levels/bands that are required.
Activate Company Features[F11]
Ensure that the company has been set up for accounts with inventory.
The different features of a company can be selected or modified by F11 button.
This button is available in almost all screens of Tally as you might wish to modify
it as your requirements change. The Company Features Screen is repro9duced
below:
Accept through each screen of company Features by pressing the Enter key (do
not press escape) and return to Gateway of Tally.
Alter Price Level Names
Alter the name of a price level, go through the same procedure as enable and
create Price Levels
How to Create and Use Price Lists
Gateway of Tally→ Inventory Info→ Price List
If the price list option does not appear, confirm the activation procedure given in
the introduction above. From the list of Stock Groups:
Under Group
To select a stock group whose items will be given prices.
Price Level
To Select a Price Level. This is the level to which a specific group of ledgers
(customer accounts) will be assigned.
Applicable From
The date from which the price list is applicable.
The columns are:
SI No
A simple serial number to track the number of items in the price-list.
Advance Inventory Features [F11]
Name of Item
Name of the stock item for which the price may be given.
Quantities – From & Less Than
These fields are repeated for an item and begin with a blank for 0 items and end
with a blank for any number of items. This is useful for quantity based pricing and
discounts. A staggered quantity price structure can be created if needed.
If no quantity based pricing is required, simply keep both the From and Less than
fields blank.
Rate & Discount (if Any)
For each quantity band give a specific price or keep the price the same for all
banks but give different discounts. Different methods can be given for different
items.
Previous Price List Rate and Discount
If a price list existed before the applicable from
date, it will be displayed.
Cost Price
The cost (based on the Cost method set for it) of
the item is displayed to help deciding prices.
Price Levels in Voucher Entry – Invoicing
Price levels automate invoice pricing and help
avoid errors. The entry can be configured to
prevent using a different price than set:
First configure to prevent changes to price settings in a voucher
Gateway of Tally→F12:Configure→ Invoice/Delivery Notes/Orders Entry
The Allow modification of ALL fields during entry should be set to No to prevent
changes to prices. Setting it to Yes will allow overriding set prices.
Now an example invoice entry:
Gateway of Tally→ Voucher Entry→ F8: Sales→ as Item Invoice
A new field price level appears and it is already selected for the party on the basis
of assignment made earliar. If a price level was not assigned in the ledger master
for the party, the cursor moves to that field to allow selection. The cursor skips the
field in case the assignment was already made and the entry configured (through
F12 to prevent all changes. On selecting the stock item and the quantity, the price
is filled in automatically and the cursor skips the price fields again.
Additional Inventory Voucher
Tracking Numbers
Tracking Number provides link between two transaction documents. It also links stock
items with corresponding accounting entries and tracks the link subsequently (that is why
it is termed as Tracking Number). Subsequently. Tracking number would be useful when
inventory & Accounting transactions are separate events (e.g. Challan first and then
Invoice or Invoice First and then Challan)
Rejection Inward/Outward Note
Basically Reg. In / Reg. out vouchers are made before the actual bill of purchase / sales is
received. If you want to return goods due to quality reasons or due to other reasons before
the purchase bill/sale bills is received, in this case reg. In/Reg/ out vouchers will be
prepared.
Set this option to yes, if you wish to record rejection of goods separately and not through
a common Debit Note or Credit Note.
Exercise
1. Alter your stock item with:
a) Stock Categories
b) Gosowns
S.No. Name of Item Categories Godowns
1. 17” Monitor LG Lalkothi
2. Cabinet ACER Lalkothi
3. Computer IBM Rajapark
4. HDD A-Tech Vaishali Nagar
5. Key-Board Intex Lalkothi
6. Motherboard A-Tech Rajapark
7. Mouse Intex Vailshali nagar
8. Network cable Tikaro Lalkothi
9. Processor Intel Vaishali nagar
10. RAM A-Tech Rajapark
11. Speaker Sony Vaishali nagar
2. Make a Price List for “Dealer’ for all the items with appropriate qty & Trade
Discount.
Inventory Voucher
Session -7
Introduction of Inventory voucher
Pure inventory vouchers perform the same function in the inventory system as accounting
voucher in the accounting system, i.e., they too, are means of entering transaction. In this
case, the vouchers record the receipt and issue of goods/stock, the transfer of stock
between locations, and physical stock adjustments.
If you have chosen but to integrate accounts with inventory, inventory vouchers will not
have any impact on the balance sheet stock figures. They separately maintain the stock
balances. However, you can configure Tally so that the inventory entries would
automatically update the balance sheet stock figure. (By choosing to integrate Accounts
and Inventory in F11: Company Features→ Inventory Features (F2))
Purchase Order
Tally permits you to produce purchase orders from the system. Purchase orders may be
produced, printed and sent to suppliers. Goods received are linked with the Pos and
Invoices. Outstanding Purchase order should be monitored. In the chapter: voucher Entry,
we have shown how orders are linked with delivery notes and invoices. Hence, we will
only consider creation, alteration and deletion of purchase orders here. Display order
position of any item from the Stock Summary. The purchase order book will list out all
the purchase orders placed.
Activate Purchase Order processing in F11: Company Features→ Inventory Features
(F2).
How to create a Purchase order
Purchase order details will also depend on configuration setting. Hence, have a look at the
configuration and voucher types.
Delete a Purchase
Alter an order and use [Alt]+[D] to delete it.
For recording of gods that are rejection and returned to a supplier. For example, the
company returns items that had previously been taken in to stock to the supplier
Rejection Out against the Receipt Note
View order Position
Stock summary is perhaps the best place to view the order position.
Gateway of Tally→ Stock Summary→ Detailed [F1]
Sales Order
Tally permits you to produce Sales orders
from the system. Sales orders received are
recorded in sales order Entry screen. The
details are available during Delivery Note and
invoicing, You may view the order position in
the stock Summary. The sales order Book lists
all sales order received.
Activate sales order Processing in F11:
Company Features.
How to Create Sales Orders
Sales order entry is exactly like purchase orders. Sales Order details will also depend on
configuration settings. Hence, have a look at the configuration and voucher types.
Gateway of Tally→ Inventory Vouchers→ Select Sales Order
Party’s A/c Name
Give the customer’s name. Type in the same manner as voucher entry and select
from list of ledger accounts. Use
[Alt]+[C] to create a new account.
Order No
The voucher number can be treated as
your internal serialized order number.
The field order No. is advised to be used
for customer’s order number.
Name of the Item
Give the name of the stock item for which the order is to be placed. Once the
name is given the item allocations sub-screen pops-up that needs to be filled in.
Due on
The due date for delivery on the item. This will enable monitoring of outstanding
deliveries. The order can be split for delivery on different dates.
Location
In case multiple location feature is active, this field is required to be given, else it
does not appear.
Quantity, Rate and Amount
Give the quantity of the item required and its rate. The amount is calculated but is
modifiable to enable rounding off.
Next Item
The cursor then comes to the item field once again and you can enter another item
to order. If no other item is required, pres [enter] on the blank field to take the
tax/expense field.
Alter a sales Order
You can alter a Sales order by displaying it from a variety of place but
is easier through the sales orders Book or the Day book.
Gateway of tally→ Display → Daybook
Or
Gateway of Tally → Display→ inventory Books→ Sales order
Delete a Sales order
Alter an order use [Alt]+[D] to delete it.
Delivery Note Voucher
For recording goods delivered to a customer. For example, the company deliver goods
from stock to a customer. If a sales order exists for that customer, selecting the
appropriate sales order will bring up the relevant particular
Goods Delivered against the sales order
Rejections-in Voucher
For recording goods received back that was rejected by a customer. For example, the
company takes back into stock items rejected by a customer.
Rejected goods inward
A stock journal is used to transfer materials or stock from one location to another
location. Stocks could even simply be shown as consumed. Or even only produce without
both consumption and production. Hence, it is not like other journal where debits and
credits must match.
The stock journal screen has three parts the top part accepts general information, the left
hand side is the source location consumption Part and the right hand side is the
Destination location or the production Part. While you must the common information
required in the top part, you may elect to give information for only the left or the right
path both.
Common information
Reference, date and voucher number
If activated for this voucher, reference field will come up. Give a reference
number, if required. Voucher number depends upon the settings in Voucher Type.
Source
Here give the name of the item and the location from which it moves or where it
is consumed as well as the rate and amount. If the rate is specified in the stock
item master, it will be brought up when you indicate the item name.
Note: the effect of entry in this part is of reducing stock of the items specified.
Destination
Here give the name of the item and the location into which the named item moves.
It is not necessary that the item names should match the names in the source part.
This is because of a totally new item could be produced Out of materials
consumed. You can specify the rate of the item and amo9unt. If the rate is
specified in the stock item master, it will be brought up when you indicate the
item name.
Note: the effect of entry in the destination part is of increasing stock of the items specified in this part.
View stock transfer Position
Gateway of Tally→ display→ inventory books→ stock transfer
Bills of Materials
A bill of materials contains a list of items that make up another item. In other words, it is
a list of constituent items.
Enable bill of materials facility
This is relevant for manufacturing organizations and can be set up through configuration.
Gateway of Tally→ F12: Configure→ Accts/Inventory Info
A Bill of material should be available while manufacturing an item. Hence, first enable
manufacturing entries. This is done through a stock journal. It is wise to create a new
voucher type, say, Mfg Journal which is based on Stock journal.
Unit of manufacture
Give the appropriate (usually the minimum) number of the finished product item that will
be made. While manufacturing (and recording through a stock/manufacturing journal),
you will make the item in multiples of this unit of manufacture.
Note: However, that in certain circumstances, it is better to give a larger unit of manufacture, e.g., per
1000 Pcs of Nails, as per nail consumption of raw Material will be too insignigican.
Input fields
Name of Product
For the stock item to be manufactured.
Location
Give the location in which it is to be manufactured. This location will show the stock.
Qty
Give the quantity of the item to be manufactured.
Component (Consumption)
The component list for the product to be manufactured and the proportionate quantity
of each component (based on the quantity specified for the product) is produced. The
default location as specified in the BoM is also give for each component. However,
the entire component list can be altered, components added or removed and locations
amended.
Note: any change may during this entry will not affect the original bill of Material for this product.
If want to make permanent change to the bill of material, change the stock item master information
(Thru Gateway of Tally→ inventory Info)
Cost of components
The base cost of the components are automatically added and displayed.
Additional cost components
You may specify additional Cost for producing the item. These would, typically
wages, power, freight etc. Remember that you must have ledger accounts opened for
the additional costs. Moreover, additional costs entered for the ledgers, don’t reflect in
the relevant ledger with amount but only at to the cost of the item. You can specify
the additional cost by way of a percentage of the cost of components, in which give
the number, e.g., 2 for 2% of the cost of components. You may, alternatively skip the
percentage Field and input and amount directly.
Total Additional Cost
This displays the total additional cost for the item.
Effective Cost
This is the some total of the cost of components and additional costs.
Effective Rate
Effective cost per unit of item/Product produced.
If you want to alter the related manufacturing/ Stock Journal, you must alter it
separately, in the normal manner. It will be available through
Display-inventory Books—Stock Item or through Statistics—Mfg or Stock
Journal.
7. Oct. 10 : Goods Delivered (RC/DN/01) to Nitin with 5% sales tax @2% surcharge
& Invoice raised on same day. Computer = 28,000 (each), HDD = 2,800, mouse =
500, keyboard = 850, speakers = 1,200
8. Oct. 17: Return 5 keyboard from Nitin against bill.
9. Oct. 22: Payment received Rs. 30,000/- by cheque & Rs. 20,000/- Cash.
10. Nov.12: Payment made to Shyam Rs. 50,000/- by cheqe & Rs. 25,000 cash by
nitin
11. Nov. 20: Payment received from Nitin Rs. 25,000/- in full settlement by cheque.
12. Dec.3: Payment made to shyam Rs. 50,000 in full settlement.
Advance Configuration [F12]
Operation Configuration
Before starting work on the company, it is advisable to configure it
by pressing F12button at the end of the button bar, which will bring
up the following screen:
Gateway of Tally →F12: configure
General
This has already been configured by you under country Specific
configuration before
Creating the company. It caters to country specific requirement.
The option available under F12: Configure General is, Country
Detail, Style of Names, Style of Dates, Configuration of Numbers
and Other Options. The screen appears as:
The Configuration settings of Country Details, Style of Names, Style of Dates and
Configuration of Numbers are self-explanatory. Make the necessary selection and accept
them.
The configuration options given under Other Options are explained as follows.
Show Monthly reports with Graphs
This option is set to YES by default. Here the reports are configured to display the
Graphs in accordance with the numeric information displayed. The Graphs are not
displayed if this option is set to no
Use Separate menu for final A/c Stmts
By default, this option is set to YES. Setting this to NO Tally displays the final statement
of Balance sheet and P & L Account Directly on the Gateway of Tally menu. However,
setting this option to YES- the final statement of balance Sheet and profit & Loss
Account can be accessed from Gateway of Tally menu- Final Account.
Numeric Symbols
This enables you to set the number styles. Default are also given. You may change them
by overwriting. For Example, change Negative Sign(-) To only ().
These are defaults and Should be changed if require. Please note that these are questions
ask you and You need yes to activate the facility and no to deactivate it.
Connectivity
Tally has extensive internet connectivity. Email, Web-publishing and Data in interchange
over the internet are all easily achieved from within Tally.
You should have an Internet Connection accessible from your computer. This
could be through a direct dial-up modem or through the network.
For E-mail – an E-mail Account.
For web publishing- you should know the sites URL (address) and have authority
to files on the sits.
E-mail
Send invoices to your customers by E-mail. Or you purchase order. In Fact, E-mail any
tally report or document as easily as you print! Even Remainder letter and statement of
accounts need not be printed and posted. Simply E-mail them. E-mail is the single largest
use of the internet and is set to penetrate Even the very small towns. You are uniquely
Positioned to take advantage of this medium. It’s not only postage cost that you save, you
save on so much of your valuable time.
To E-mail Address
(Mandatory field)
This is for the recipient’s e-mail address. A valid e-mail address is required.
CC (if any)
For coping the mail to another recipient.
Subject
This is pre-field for you. Change it to any other meaningful subject.
Additional Text
The text in this will appear as the first line in the massage body of the reception’s mail
program. The other options are the same as in print option and are self Explanatory
Internet Publishing
Web sites most businesses will have on in the near future. Tally helps make, commercial
use of your web space with the ability publish all reports and document on your web site.
You can use this features to inform customer the new Price range the stock available for
sales. Tally has ensured that this transmission of data is secure by using world standard
encryption of data.
Upload
Any report or statement or data can be published on the internet. Publishing is
carried out by uploading the report to an Internet server that has been configured to accept
files in specific protocols. A site is a basically a specific directory space allotted to you to
you on that sever. Protocols are sets of rules and specifications on how data and files are
transferred over a network and cover all aspects of communication between computers
including content, formatting and error control.
Say you want to publish your price List on Your websute.
1. Select the Price List from Inventory Information.
2. Click the Upload button.
The first time you upload, you have supply Tally with some information Therefore select
No to the question Upload?
FTP or File Transfer Protocol is the most common choice to transfer data or files of any
type to an internet site. You will use this unless you know that your site accepts HTTP or
HTTPS uploads.
URL
Short for Universal Resource Locator that tells Tally the server address where you want
your report published. If you are using FTP you will need to know the FTP server Name
and directory path. The FTP sever name is the domain name of the Web server to which
you are publishing (for example, ftp.server.com) the directory path is the folder on the
sever where your web is stored (for example, /public_html). For a web page, an URL will
typically be in the form www.myweb.com.]
Secure server
If you select web page to, this question seeks to know whether you want to use a secure
connection. Select Yes, If you think your data is sensitive and provided your server is
configured for it. A secure site is one that has the‘s’ with know it is a secure site when
you see in your browser URLs like https://mybank.com/myaccount/States.htm.
File Name
A file name is proposed if you have select FTP Site to Upload to. Accept it as it is or
modify only if necessary.
Format
The Same four format options are available. Select the most appropriate to your needs.
An explanation on each format has already been given under the E-mail section.
Web Browser
You have a button to access the World Wide Web from Tally. Click on the button Web
Browser to begin your session. When you want to end it, press End Browser. Of course,
you should have a valid internet access account set up on your computer and a browser
that is already installed.
Licensing Menu
To view the licensing menu, follow this path: Gateway of Tally→ F12: Configure→
Licensing
Single-User
The screen given below displays the options available in License menu
Function/Features
This option allows you to view the Function/Features enabled in tally.
Menu Path: Gateway of Tally→ F12: Configure→ Licensing→
Functions and Features
Products
This option displays the information of the TCP (Tally Compliant
Product), which is available for that particulars instance of Tally.
Online
The term Online indicates that your computer is connected to the Internet.
Offline
The term offline indicates that your computer is not connected to the Internet.
Quit
This option enables you to quit the licensing menu.
Multi-user
In multi-user system. The license menu of the License server displays all the options that
are available for single-user system.
Reports
Session -9
Features of Reports
Tally prepares the books of account and financial statements based on the vouchers you
have entered to date. You can then very the appearance of reports according to your
needs, for example, to make comparisons between different companies, periods of the
financial year, groups and ledgers. In each case, when you display a report, you can step-
down to the next level of detail by highlighting the item and pressing Enter, and you can
keep going until you reach an individual voucher. Similarly, you can step back to higher
levers by pressing [Esc]. The special features available for the currently displayed report
are indicated on the button bar, and can be selected with a single click of the mouse.
Accessing reports
The Gateway of Tally menus provide access to all the financial reports, as in the diagram
opposite. For example, if you want to view the sales Register then, in the Gateway of tally
menu select Display, account books and Sales register in turn, and Tally will display the
report for the currently selected period.
Modifying Reports
Once you have selected a report and its screen appears, you can modify the display to suit
your requirements using the appropriate buttons on the button bar. You will get to know
the functions of the various buttons as you become more familiar with Tally but some
button bar. You will get to know the functions of the various buttons as you become more
familiar with Tally but some buttons perform similar functions in all reports, providing
they are appropriate to the screen you are viewing.
If you select the buttons using the keyboard, the conventions are:
F1: Detailed/Condensed
Adds a further level of detail to the report, or condenses the report to a higher
level of detail.
F2: Period
Enables you to change the period of the report by specifying new from/to dates.
F3: Company
If you have more than one company selected, this button enables you to change
companies to display the new company data in the current screen format.
F4: to F10:
The functions performed by these buttons vary from report to report.
F11: Company Features
The button is not related to displaying reports but to selecting options that affect
voucher entry. The screen it displays must not be changed during training.
F12: Configure
This button is very relevant to displaying reports and enables you to define the
report-specific options you wish to use. For example, depending on the report you
are in, you can specify whether it should be in horizontal or vertical format, show
percentage, show percentages, show gross profit, show opening and/or closing
balance, change the periodicity, change the sorting method, and so on.
F12: Range
This button enables you to filter the information you see displayed based on
monetary value. For example, you can specify you only want closing balances
greater than £5,000.
F12: Value
This button enables you to filter which vouchers you wish to be used in the
calculations. For Example, you can specify you only want vouchers having a
narration containing the cash transactions.
New column
This button enables you to add another column to the report to display comparable
information for another company, or for a different period for the same company,
all on the same screen.
Alter Column
This button enables you to alter the details of a new column you have previously
created, for example, the date range. You select the column to alter by positioning
the cursor in it prior to selecting the button.
Del Column
You use this button to delete columns you no longer wish to see in the report.
Auto Column
You use this button to add multiple columns to a report, for example, columns for
each month, or to accommodate several companies. You can also have a total
column for the total of each item across all columns.
Balance Sheet
The Balance sheet gives the state of
financial affairs of a company on a given
date. It lists out the Assets and Liabilities
based on the Primary Groups of Tally. The
Balance sheet in Tally is updated instantly
with every transaction voucher that is
entered and saved. No special processing
is required to produce a Balance Sheet. To
view the Balance Sheet:
Gateway of Tally→ Balance Sheet
Stock Summary
Stock summary is a statement of stock in hand on a
particular date. The statement is updated with every
transaction so that it provides current stock position at
any time. The statement can be drilled down as with all
Tally reports, and configured to view different details.
Indeed, It’s possible to see the total flow of stock on a
single report. Experiment with the different buttons for
this purpose. Tally treats stock summary as one of the primary statements and makes it
accessible directly from the gateway of tally. To view the Stock Summary:
Gateway of Tally→ Stock Summary
The default display is that of stock group balances. Select Detailed to show another level
of detail. This could be sub-groups or directly stock items in cases where there are no
sub-groups. The stock groups show total quantities. This is because the unit of measure is
the same for all the stock items that have been set up to have quantities of items added.
The stock group services, does not have any balance. This is because of the original set-
up of the Services items, where stock is valued at Zero Cost and all sales are treated as
Manufactured. Note that there is a grand total too because of a single unit of measure ,
then there would not be a grand total.
Stock Summary with different stock valuations serves to show the effect of different
methods on the value of stock. Most popular methods are available. Each stock item
could be set up to have a different stock valuation method as default. However, there are
occasions when another method of valuation is needed, for example to assess the
replacement value or the saleable value of stock. Tally shows the stocks in any or all the
valuation methods dynamically and simultaneously without going through complicated
procedures.
Last Purchase Cost method can be used to assess the replacement value whereas Last Sale
Price for realizable (saleable) value.
While in the Stock Summary, select new column Select defaults for all except stock
Valuation Method
Stock Group Summary
This report is available only if the option in company features: Integrate Accounts And
Inventory is set to No.
The statement shows the Opening and Closing Stock figures that have been input in the
ledger account master rather than picked up from the Stock Summary. Hence, the stock
summary figures and the stock group summary will show different figures.
The ledger account belongs to the stock-In-hand Group.
Drill down the stock Group Summary to reach the stock Ledger account where the
closing lance for a given date can be input. Different closing Stock figures can be put in
for different dates that will remain effective till the next figure. The relevant figure for a
date is picked up into the Balance Sheet and Profit & Loss Account.
Ratio Analysis
Gateway of Tally→ Ratio Analysis
The Ratio Analysis statement is a single sheet Performance report for a selected period. It
gives important values and key performance indicators for the company. It’s one report
that top management need to look at to know the state of the company’s financial health
and where it is going in the short term.
The Ratio Analysis Screen is divided into two parts: Principal Groups and Principal
Ratio
The Principal Groups are the absolute key figures that give perspective to the ratios.
Principal Ratios relate two pieces of financial data to get a comparison that is more
meaningful when compared with ratio of other companies.
Principal Groups and Key Figures
Working Capital
Tally follows the Accountants’ definition and is the Net working Capital
calculated as Current Assets less Current Liabilities. Financial Analysts often
mean total Current Assets as Working Capital. This is a measure of the extent the
firm is protected from liquidity problems.
Cash in hand and Bank Balances
There are indicated in the Ratio analysis screen to give the liquidity perspective.
Sundry Debtors
(due till today)
These are two figures, total debtors and debtors that are due as on the date of the
Statement.
Sundry Creditor
(Due till today)
These are figures, for total Creditor and those that are due as on the date of the
Statement.
Sales and Purchase Account
These show the trading activity for the period
Stock in hand
This is the stock in hand as on the report. Together with Cash and Bank Balances
and Debtors, Stocks complete the Current Assets aspect of Working Capital.
Net Profit
This is derived from the profit & Loss account and is the profit after all direct and
indirect expenses.
Principal Ratios
These should be compared to industry averages, as well as for other periods to assess
current period’s performance.
Working Capital Turnover
Sales/Working Capital
This is an activity or efficiency ratio that shows the number of times the working
capital has been rolled over during the period of the report. It depicts how
effectively the firm is using its working capital.
Inventory Turnover
Sales/Closing Stock
This is an activity or efficiency ratio that shows the number of times stocks has
been rolled over during the period of the report. It depicts how effectively the firm
is using its inventories.
Current Ratio
Current Assets: Current Liabilities
This is a liquidity or solvency ratio and is the most oft-used ratio for assessing the
capability of a firm to meet its short-term obligations. It specifically shows a
firm’s ability to cover its current assets with current liabilities.
Quick Ratio
Current Assets-Stock in Hand : Current Liabilities
This liquidity or solvency ratio is also called acid-Test Ratio that concentrates on
more liquid of the current assets or measure a firm’s ability to meet its current
obligations. It is thought that stocks and inventories are the least liquid of all
current assets and hence a firm might become insolvent if its current assets
comprise a high proportion of inventories.
Debt-Equity Ratio
Loans (Liability: Capital+ Net Profit)
This is a gearing ratio that shows the extent to which long-term debts is used to
finance the firm. It shows the proportion of borrowed funds to owners’ Equity.
The lower the ratio, the higher the amount of funds invested by the owners’. If the
ratio is high, it indicates that borrowed funds are more than own funds and the
firm, which makes the firm lower credit-worthiness.
Gross Profit %
This is the trading profit before indirect expenses and taxes expressed as a
percentage of total sales. It measures the efficiency of a firm’s operations as well
as indicates how products are priced.
Net Profit %
This is the profit after all expenses including direct and indirect expenses but
before taxes expresses as a percentage of total sales. It is a more specific measure
of the efficiency of a firm’s operations.
By considering both Gross Profit % and net Profit % together, we are able to gain
considerable insight into a firm’s operations and the part played by the direct and
indirect expenses.
Operating Cost%
As a percentage of Sales Accounts
This is total cost including direct and indirect expenses but before taxes expressed
as a percentage of sales. A high ratio shows that even a slight rise in costs would
be risky and might necessitate increase in price.
Return of Investment %
(Net Profit/Capital + Net Profit)%
Net Profit here is Profit after all expenses but before taxes. This is a profitability
ratio that an investor is most interested in. The investor needs to know how much
is earned on each dollar invested. If the investor finds other avenues that give
better returns, he will move his money from the firm.
Return of Working Capital %
(Net Profit/Working Capital)%
This is another profitability ratio that ignores sunk costs in fixed Assets and
assesses how profitably a firm uses its net current Assets.
Receivable Turnover in Days
Payment Performance of Debtors
It’s an efficiency ratio that measures the quality of a firm’s receivables and how
successfully it collects its debts. Receivable Turnover in days is a figure that tells
us the average number of days that receivable are outstanding before being
collected. It should be compared w9ith the average credit policy of the firm.
Display Reports
Display Trial Balance
Gateway of Tally→ Display→ Trial Balance
The Trial Balance Report provides account balance listing for all
accounts for the company sorted according to groups, i.e., the Trial
Balance is displayed in grouped form with main grouped form with main
groups and their closing balances. The fact that the debit and credit
balances match proves the arithmetic accuracy of the entries.
In tally, the matching of the Trial Balance is a foregone conclusion as all voucher entries
are in the debit and credit format and must balance at the entry point.
Note: As per accounting principles, the Trial Balance does not list Closing Stock.
You can drill down a Group for further details of that particular group.
Or
Select Detailed to break down the grouped information to another level.
Or
Select Led-wise to take an alphabetic listing of all ledgers and their closing balances.
Select Column to bring up the closing balances for another date.
Day Book
Gateway of Tally→ Display→ Day Book
The Day Book is a list of all transactions for a particular day, by default the current date.
It can also list all the transactions for a period. Transactions include all financial
vouchers, reversing and memorandum journals as well as inventory vouchers.
Day Book for the current date:
Account Books
Cash/Bank Books
Gateway of Tally→ Display→ Account Books→ Cash/Bank Books
Statement of Accounts
Outstanding
Receivables and payable
Receivables and Payable are the two key components of any
company’s working capital as well as its business activity.
Receivables are part of current assets, whereas payables are of
current liabilities. Both influence the short-term liquidity and
financing of the company considerably. Effective control of these
outstanding is necessary for the company to be financially sound. To
view the Receivables and Payables screen
Gateway of Tally→ Display→ Statement of Accounts→ Outstanding
The following screen displays.
This report displays all outstanding receivables invoice by invoice till date. Remember
that this report takes into consideration only those accounts that have Bill-by-Bill option
activated.
Date
This is the Effective date of the invoice and not the actual date. Hence, if your
invoice date is 15 November but the effective date is 30 November, 30-Nov-08
will be displayed here. Credit period is calculated from effective date
Reference Number
This is the Bill reference number that was entered in the Bill-wise Details.
Party’s Name
The ledger name appears in this field.
Pending Amount
This is the outstanding balance on a particular invoice. To see the breakup, press
SHIFT + ENTER.
If you want to see the breakup of all the bills, select the F1: Detailed button. This
toggles with the button F1: Condensed.
Due On
This is the due date of the bill (with reference to the Effective date) specified
during voucher entry.
Overdue by days
This is the period in days from the due date to the end date of the report. In the
above example, the end date is 2-April-2008
Drill-down
You can drill down any invoice for further details.
Buttons
Print the report or e-mail it or use other buttons to configure, make a query or
change the format of the report.
Payables (Bills Payable)
To view the Bills Payable screen
Gateway of Tally→ Display → statement of Accounts→ Outstanding→ Payables
Note: Payable is treated exactly the same way as Receivables.
Age-wise Analysis for bills outstanding
1. Gateway of Tally→ Display→ Statements of Accounts→ outstanding→ receivables/
payable/ ledger/ groups
2. Select the group
3. Select F6: Age-wise and one of the two methods of Ageing.
1. Ageing by Bill Date
2. Ageing by due Date
3. Set the age periods required for the report…
Bank Reconciliation
Reconciling the company’s Bank Accounts with the Banker’s Statement is a fundamental
and regular task of Accounting. Our first presentation of this facility aims to tackle two
issues.
First, there should be the ability to ‘check back’ the correctness of the reconciliation. This
has been done, by marking the ‘Bank Date’ against the voucher. For instance, if you have
issued a cheque on 8th April, which was ultimately cleared by your Bank on 19th April, -
you would set the bank date for the voucher to be 19th April. This means, that when you
next need to ‘check back’ whether the entry made by you is correct, you will only need to
verify the bank statement of the 19th.
Second, that you should be able to ‘recover’ the reconciliation as of any date. This is of
crucial importance to Auditing. This Bank Reconciliation is one of the pre-requisites of
Auditing and verification of the correctness of accounts at the year end. However, it is not
a ‘real-time’ task in the sense that it is not done by the auditor’s on the first day of the
next year. This means, that the reconciliation made on 31st Mar, should be ‘viewable’
even in August, - by when almost all the cheques would have subsequently been marked
as reconciled. This has again been achieved using the concept above.
Bank Account may have a different ‘Starting Date’ for reconciliation purposes. When you
create a Bank account, you are requested to give an ‘Effective Date for Reconciliation’
just before the Opening Balance. Normally, this would be the Books Beginning from
Date itself. However, You could have imported data from a previous version of Tally or
from any other system (where the reconciliation process was not available or was
different. In that case, you may not wish to reconciliation facility to be activated. Then,
previous entries will not appear for reconciliation, but will be taken as a reconciled
Opening Balance.
A quick experiment with Reconciliation will show you what is meant. Here is how you go
about it:
1. Bring up the monthly summary of any Bank Book.
2. Bring you cursor to the first month (typically April), and press Enter, this brings
up the Voucher for the month of April. Since this is a Bank Account, an
‘Additional’ button F5: Reconcile will be visible on the right. Press F5.
3. The display now becomes an ‘Edit’ Screen in ‘Reconciliation’ mode. The primary
components are: a Column for the ‘Bankers Date’
4. The ‘Reconciliation’ at the bottom of the screen, showing:
5. Balance as per Company Books
6. Amounts not reflected in Bank
7. Balance as per Bank
The Balance as per Company books reflects your balance as on the last date (in our
example case, 30-Apr).
The Amounts not reflected in Bank is the debit and credit sums of all those vouchers
whose bank date is either BLANK, or GREATER than 30-April (i.e. these vouchers have
not yet been reflected in the Bank Statement).
The Balance as per Bank is the Nett effect of your Book balance offset by the amounts
not reflected in the bank which should equal the balance in the bank statement. (Of
course, some variation may persist due to entries made in the Bank Statement which you
have not yet entered in your books but since you WILL definitely enter them, and only
then print your reconciliation, it will ultimately reflect the correct balance).
You will find, as you mark off the individual vouchers by setting the ‘Bank Date’, that the
Reconciliation at the bottom screen keeps reflecting those changes instantly. When you
are finished, press Ctrl+A(or press Enter as many times as necessary to skip over the
unmarked voucher), and accept the screen. (If your screen has a largish number of
vouchers it may take some time to complete the acceptance be patient).
The next time you come for reconciliation, you will be presented only with those
vouchers which remain unreconciled. Thus, the task keeps becoming simpler.
(It may be possible, that due to an error of entry made earlier, you wish to see those
vouchers which are already marked as reconciled so that you may modify their marking.
To do this, press F12:Configure. In case you have already pressed a few keys BEFORE
pressing F12, Tally will query whether you wish to discard changes made so far, if any,
by asking ‘Quit Y/N’. Simply press Y and the configuration screen will appear. Here,
specify whether you wish to see the reconciled vouchers also).
Remember, to print your Reconciliation, just press Alt+P!
Group Summary
Gateway of tally→ Display→ Account Books→ Group
Summary
The group summary statement shows the closing balances
of the accounts falling under the selected group for the
period up to the current date. The standard view is that of
sub- Groups in the groups.
Group Vouchers
Gateway of tally → Display→ Account Books→ Group Vouchers
Sales register (sales day book)
This explanation should be used for all day books and voucher register.
Gateway of tally→ Display→ Account Books→ Sales Register
All registers first display the monthly summary with transaction and closing balance. For balance sheet
account, opening balance will be given at the top. Select a month and press enter to see the sales voucher
register.
This is a list of all sales vouchers for that month. Use the option in the button bar to change the details. You
can change the period of the report as well as the depth of information. Use F12: Configure to see the
report with some or all of following details: narration, bill- wise details, cost centre details and inventory
details. Click on Detailed to see all the detail selected.
Inventory Books
Stock Items
Gateway of Tally→ Display→ Inventory Books→ Stock Item
Ageing Analysis
A very important function of Working Capital management is monitoring stocks.
Money locked up in stocks can adversely affect the liquidity of a company and
every company strives or should strive to reduce stock levels to the optimum.
Every business (except perhaps the liquor and antiques dealers) would prefer to
dispose of older stocks as they might deteriorate with time, go out of fashion, or
simply get forgotten. Tally’s aged stock analysis or stock ageing enables you to
know the age of stocks in hand according to when they were received and the
purchase value.
The Ageing Analysis report produces a default ageing period of (45 days, 40-90
days, 90-180 days and) 180 days. You can change the setting by using F6. The
default report displays stock values based on Actual Purchase invoice. Use Hide
Amount to view the report without values as has been done above.
Note: As Negative Stocks cannot be aged, they are shown in a separate column.
Item Inward Details
Age Analysis is done for stock-in-hand based on when it was purchased. The Item
Inwards details statement provides further information of aged stock such as date
of purchase and supplier, and allows drill-down to the actual transaction voucher.
Go to Gateway of Tally→ Display→ Inventory Books→ Ageing Analysis
Move the cursor to any of the age-wise column (i.e.., <30days, 30 to 60 day,> 60
Days) for an item and press Enter.
The Godown/Location Summary Statement Shows the Stock Summary for different
Godowns/Locations. While the main Stock Summary shows the stock position for the
entire company on a given date, the Godown/Location Summery is a statement of stock in
hand at each location on a particular date. As with all Tally statement, it is updated with
every transaction so that it provides current stock position for any godown/location at any
time. The statement can be drilled down a s with all Tally reports, and configured to view
different details. It is also possible to see the total flow of stock for each location in a
single report.
Gateway of Tally→ Display→ Statements of inventory→ Godown/Location
Exception Reports
Exception report are reports that track unusual transactions or
balances. The different Exception Reports are:
Gateway of Tally→ Display→ Exception Reports
1. Negative Stock
2. Negative Ledgers
3. Overdue Receivables
4. Overdue Payables
5. Memorandum Vouchers
6. Post-dates Vouchers
Exercise
1. Chech all the pending bills and orders for debtors and creditors.
2. Display balance sheet and P&L in vertical mode.
Import & Export of Data
Session -10
Import of Data
Importing master data
Gateway of Tally→ Import of Data
A File containing the masters and vouchers
exported from another Tally company data
should exist so that it can be imported and
merged with the data of the current company.
On selection of All Masters/vouchers, you will
be required to give the source file name and
format in which it is to be imported. Give the
full path of the source file. Data may be
imported in Tally from Tally 4.5 Format, or
Tally 7.2 Formats are inherently richer in
content. Lists of Accounts (Masters), and
Vouchers (e.g. Daybook), exported out from
Tally ies 8.1 are in this format, and may be
imported into another company or location. A
typical use of this facility is to export the daily vouchers from a Branch, and sent it to the
Head Office for importing into the main Accounts.
Tally’s design permits it to import any kind of data. It is capable of being programmed to
use data from other systems much more easily. This permits you to continue using other
systems and use some of their data in Tally as if they were parts of one integrated system.
Export of Data
Export of data is provided mainly for summaries and statement reports like Trial Balance,
Stock Summary, etc. The main use would be to export data to, say, a spreadsheet, and
reorganize it for statutory presentation. Or export it to another company using Tally that
will import it directly.
Import Vouchers
Return to Gateway of Tally and select Import of data> Vouchers. Type the file name. The
name and path of the source file should match.
Tally ODBC
Tally captures all the information related to your business. There are many situations
when you would like to get the information presented in a different format or wish some
additional input. With Tally 8.1, you can create a format in ODBC compliant application
like Ms Word or Ms Excel, plug tally data fields to pull data real time form live tally
database to create your on update report.
The full form of ODBC is open database connectivity. It is a standard programming
language interface used to connect to data source. You install ODBC drivers for various
databases that enables you to connect to the databases and access there data.
6. Select Tally ODBC. (you could use a saved query by clicking the Tab Queries. Do
that after you have saved this query that we are creating)
7. Select Ledger and move by click>button to the right the following fields:
$Name, $Parent, $Address (move all the other address fields as well.
Then in the next Query Wizard Screen Filter data to limit all ledger accounts belong to
the Group that contains the name ‘Customer’. (In our Sundry Debtors Group we have
created sub-groups called Trade Customers below which we have different Customer
Groups as well) We want to print labels for customers only.
Exercise
1. Create a Company with your name.
2. Export all the Data of Raj Computers.
3. Import the Data in your new company.
Printing
Session -11
Printing reports
Reports and documents generated through Tally’s extensive display capabilities can also
be printed. Printing is possible in two ways:
Using the Print Button
You can choose to print directly from the screen currently displayed by selecting the
button PRING (top-most button on the right-hand side of the screen). This brings up the
Print Configuration screen for the report and new button options on the right-hand side of
the screen.
Multiple Printing
Principally geared towards printing the Primary Books of Accounts, like the Cash and
Bank Books, Accounts Ledgers, Sales and Purchase Registers etc, without needing to
select the accounts one at a time and pressing Alt+P. the facilities provide for printing
One Account at a time, all Accounts in a selected Groups. Before printing, the date range
and other selections may also be set up.
The current
mechanism of printing
used by Tally, will
require that for large
company accounts,
you choose to print
each large company
accounts, You choose
to print each ledger
account on separate pages, - otherwise the memory requirements of the system become so
large as to bring most systems to their knees.
Common printing options affect the printing of current selected reports. They are changed
by selecting the appropriate button on the right-hand side of the screen:
With Preview:
To view the report on screen before
printing.
Titling:
To change the title of the report.
Page Nos:
To specify the starting page number and
page number range.
Pre-Printed/ Plain Paper:
Toggle to make the selection.
Print Format:
A pop-up list displaying the printing formats available in Tally. The formats
provided are, Dot-Matrix Format, Neat Format and Quick (Draft) Format.
With Colour:
This option is only relevant if you have a colour printer.
Copies:
To specify the number of copies to be printed.
Printer:
To change the printer settings. This also displays the default paper size that you
have set for the printer.
Print Format
Print Format is a button that appears on the Print screen (after pressing Alt+P or clicking
on the print button). Click on the Print Format button, Tally displays a list of Print
Formats as follows:
Neat Mode and Quick/Draft mode print formats are compatible with most of the printer
drivers installed on the Windows opening system. Dot Matrix Format in Tally is a special
print format that allows you to print Tally reports in text format using the Blazing speed
of Dot Matrix printers.
Select Dot Matrix Format, the screen appears as:
By default, the Epson printer drivers have been defined. You may install Epson Printer
drivers in Windows for any Dot Matrix printer and use this format for faster report
printing!
Note: Any Dot Matrix printer may be used, but ONLY the Epson printer drivers (LQ and FX series) should
be used for Dot Matrix Format printing of Tally.
Draft Mode Printing (Quick Format)
Almost every report can also be printed in Draft Mode (except for Cheques!). The default
behavior of Tally is to print in Neat Format and you may alter this by Pressing Alt+F jut
before printing all subsequent reports will be printed in Quck Format, until Alt + F is
pressed agin at the Printing Screen. (The button equivalent for this is marked Quick
Format),
Multi-Account Printing
This option enables the printing of the primary Books of Accounts, like the Cash and
Bank books, Account Ledgers, Sales and Purchase Registers etc., without having to select
the accounts one at a time and printing them.
Go to Gateway of Tally→ Multi Account Printing.
Choose between the options account Books, Inventory Books, Day book and Multi
Voucher Printing.
You can select the date and other selections before printing
Drill-down to Accounts Books, Outstanding statements and Inventory Books and select
the appropriate reports to print. Change the common printing options by selecting the
appropriate buttons on the right side of the screen.
When printing the Ledger Outstanding screen, if show contact details is set to Yes, and
Start Fresh Page for each Account is set to No, the Contact Person and the Tel. No. fields
are displayed below each ledger account in the same page.
Printing Configuration
General
Gateway of Tally→ F12 Configuration→ printing
This configuration is applicable for all print reports.
Print Date & Time of Report
This option enables printing of system date and time on each
report. These are printed on the top right corner of the report as
a control mechanism. It should not be confused with the date
range of the report
Note: Vouchers and Invoices are not reports.
Stop printing Vertical Lines/Borders
Set this to Yes to avoid printing of vertical lines and borders in
dot-matrix printer. This helps in faster printing.
Standard Space on Top of pages (Inches)
This field is set to 0.5 inch by default. However, you can
change it as per your requirement.
Receipt Notes are entered in the same format as Delivery Notes, and if Purchase
Orders are enabled, the details of the order would automatically get filled-up.
Further, Purchase Invoices would also auto-fill with the receipt Note or Purchase
Order details as relevant.
Purchase Orders
Purchase orders are required to be printed and sent to suppliers.
Payment/Receipt/Journal Vouchers, Credit Note/ Debit Note
Configure the dimensions and details as per your requirements to print
Details of the above configuration options have been discussed in Invoice Entry section.
Delivery Note
Delivery Note appears similar to invoices. Fields like Rate and Amount may be required
by some companies to be printed out on Delivery Notes. Select the options as relevant to
your company. Sales Order/Quotation.
Sales Orders, if marked Optional, during voucher entry, are printed as quotations.
Reminder Letter
The reminder Letters feature in Tally can be used to remind any customer or supplier of
their overdue bills.
Space to leave on top (default 0.5 inch) and Space to leave on left (default 0.5 inch): these
fields are set to 0.5 inch by default. However, you can change it as per your requirement.)
Information in First Paragraph and Information is second Paragraph: the information
provided in these two fields can be used as such, modified or extended.
Confirmation Statement
Confirmation Statement are not the same as Reminder Letters. They serve to confirm the
account balances with customers, suppliers, lenders and borrowers. This is used mostly at
the end of a period but can be produced at anytime.
Space to leave on top (default 0.5 inch): this field is set to 0.5 inch by default. However,
you can change it as per your requirement.
Titling for ‘Subject’ in Letter: the default text is Confirmation of Accounts. You have
the option of changing it as per your requirement.
Information in first Paragraph and information Second Paragraph: the information
provided in these two fields can be used as such as such or modified or extended.
Sing-off used for the Letter: the default text can be changed in this field also.
Taxation
Session -12
Service Tax
Features of Service Tax in Tally ies 8.1
Service tax integrated in Tally 7.2ies takes care of your service tax transaction. It
eliminates error-prone information, incorrect remittance, penalties, compliance, interest,
Compliance issues, etc. service Tax in Tally ies7.2 needs a one time configuration for
service tax to be activated.
Tally tracks bill-wise(bill by-bill) detail and automatically calculates
service tax payable and input credit with the flexibility to make
adjustment later.
Service tax is part of a regular transaction. Information on service tax is
maintained and produced category-wise, which is mandatory-in service
tax returns.
Adjust input credit towards service tax payable.
Accounts for abatement and expenses.
Provision for exemption notification details.
Built-in assessable value feature on which service tax is calculated.
Transfer earlier pending service tax payable and available service tax input
credit in to Tally
Reports are generated as per government suggested format. Print and file
reports: TR6 Challans.
Management information services (MIS) reports: service tax payable
report.
Entering Service Tax Details
Gateway of tally→F11→ Statutory & Taxation
Company Service Tax Details
The Company Service Tax Detail screen is where you will enter the service tax details,
The name of the company is displayed at the top followed by different fields.
Service Tax Registration No.
Enter the registration number allotted to you by the Service Tax Department.
Date of Registration
Enter the code given to your company by the Service Tax Department.
Type of Organization
In this field select the type of your organization from the List of Organizations menu.
Major Service Category Name
Here you will find options for different categories that corner under the service tax net.
You might be providing two or more services in a company. In such a situation, select the
service category that is the mainstay or forms the major part of your business.
Select the relevant option from the List of Service Categories that applies to your
company.
Credit Adjustment (%)
By default this field is set to 20. Enter the percentage of credit adjustment that uou would
like to avail.
Division
Code- The code of the division in which your company falls.
Name- Enter name of the division under which your company falls.
Range
Code- Enter the code of the range of your company
Name- Enter the name of the Range under which your Company Falls.
Commissionerate
Code- This is the code of the Comrnissionerate of Service Tax under whose range
the address of your registered premise is located.
Name- This is the name of the Comrnissionerate of Service Tax under whose
range the address of your registered premise falls.
Focal Bank Details
Focal Bank Code The Commissionerate of Tax allots a code to banks
nominated for payment of service tax in a particular area.
This code is available with commissioner ate of Service
Tax.
Focal Bank Name This is the name of the bank nominated by the
commissionerate of Service tax to receive service tax
payments in a particular area. This information is available
with the Commissioner ate of Service Tax.
Focal Bank Address Enter the address of the branch of the focal bank.
Press ‘Enter’, once you have entered the service tax details. This will take you to
the company Operations Alteration screen. Accept to save the change.
Creating Masters
Creating Party Ledgers
You can activate service tax in the party ledgers at the moment of creation of
ledgers or in alteration mode of ledgers. Set yes in the service tax applicable field.
For parties for which service tax is applicable you get another screen to specify
the exemption details. If Party is exempted from service tax by any government
notification set Yes at Is exempted field and enter notification number at
Notification details.
If party is not exempted from service tax set No at Is Exempted Field.
Specify service tax registration particulars of the party eg. Registration No.
Registration Date)
Exemption Notification
Set Yes in the is Service Tax Applicable? Field. This will display the exemption
Notification Number screen.
In the Type of Duty/Tax field select Service Tax from Type of Duty/Tax. Enter other
details and press ‘Y’ or ‘Enter’ to accept.
Service Tax Category
To get the service tax category select
Gateway of Tally→ Display→ Statutory Masters→ Service Category
Select the category you want to display. It will show you code, accounting code, category
code, applicability date of service tax in this category with service tax rate and cess rate.
Creating Sales Ledger for Services
If you are selling a service then create a ledger for the service provided. These ledgers can
be in Sales accounts or Direct Incomes Groups. Enter the name of the service you provide
in the Name field. In the under field; select sales Accounts/Direct Incomes from the List
of Groups menu. Set the Is service Tax Applicable? Field to yes. Select the category of
service form the List of Service Categories.
Select the service category which you want to view. This Service Category screen has a
name field showing the category. This is followed by the Code, Accounting Code and
Category fields.
The Applicable From column displays the period for which the Abatement (%), Service
Tax Rate(%), and Cess Rate (%) are applicable.
Voucher Creation
Sales Voucher Entry
If you have already computed service tax you may enter sales voucher in voucher mode
or if you want to get service Tax Computed use invoice mode to enter sales voucher.
The Bill-wise details screen is displayed. Select a new reference from the Method of Adj.
Enter the due date or credit period, if any. Enter the service Tax Ledger from the List of
Service Tax Ledgers.
Use the Narration field to enter other information field to enter other information. Accept
to save the entries.
Crediting Receipts and Payments Voucher
Open Tally, Gateway of Tally Accounting Vouchers (Transactions/Voucher). This will
open the Accounting Voucher Creating screen. Select F6: Receipt to create a receipt
voucher.In the Particulars table, select the company to be credited for the payment
received from the options in the List of Ledger Accounts. Enter the amount received in
the credit field
.
Select the method of adjustment from the Method of Adj Field and the List of Pending
Bills From the bill-wise details screen.
Now select the bank/cash ledger where the payment is to be debited from the list of
Ledger Accounts menu. Enter the amount received in the Debit Field. Enter details of
the receipt in the Narration field.
At company Service Tax details at credit adjustment rate, enter the rate of service tax
credit. Enter the credit adjustment %. Normally it is 20% (where the expenses relating to
tax credit are not solely attributed to service income).
The purchase service tax may be adjusted to the extent of credit adjustment %. Say if the
rate is 20% then only 20% of the input credit may be adjusted.
ST3 Report
The ST3 Report is a statutory report. This report displays the ST3 Form in
government prescribed format that is used to file half yearly service tax returns to
the commissionerate of Service tax.
Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST3
Report
Use the Alt+P key or click on Print Option to print your report.
This will display the form ST-3 screen.
ST3A Report
The ST 3A report is a statutory report. This report displays the ST 3A Form in the
prescribed format and is filed quarterly or half yearly as the case may be. This
gives details of the difference between service Tax deposited to the government
and the Service Tax Liable to be paid for each month in a memorandum in Form
ST 3A, which will be accounted quarterly or half yearly as the case may be.
Gateway of Tally→ Display→ Statutory Reports→ Service Tax Reports→ ST 3A
Report
Enter the dates of ST 3A period in the From and to fields and accept the screen.
Dealer Excise
Dealer Excise in Tally
The dealer excise functionality in Tally supports the following features, marking it easy
for computation:
1. Easy to use
2. Fast and error free voucher entry
3. Complete tracking of Excise duty on each transaction
4. Printing of Excise invoice with the supplier & Manufacturer details as User
configurable option.
5. Reports are generated as per Central Excise Statutory requirements
6. Generation of Quarterly Return in Form-2
3. In the Mailing Details section enter the supplier contact details, Income Tax and
Sales Tax numbers.
4. Set Excise Details to Yes to display the Excise Details sub form.
5. Enter the Excise Registration Number of the supplier.
6. Enter the Range under which the supplier’s company is registered.
7. Enter the Division under which the premise of the Supplier’s Company registered.
8. Enter the division under which the premise of the Supplier’s company is
registered.
9. Select the default Nature of purchase form the nature of purchase list. The table
lists the type of Purchase, which can be changed during transactions.
Note: The Excise details sub-screen appears for ledgers created under Creditors and sundry Debtors
only.
Creating Customer Ledger
Creating customer ledger is similar to that of creating the ledger but it should be
created under sundry debtors.
Creating Stock Item
Gateway of Tally→Inventory info→ Stock item→ Create
The Stock Item Creation screen appears as shown below.
1. Enter the name of the
Stock Item in the
Name field.
2. In the Under field,
select the Group
under which the
stock Item is created
from the List of
Group list.
3. Select the unit for
the Stock Item from the Units list.
4. Set Excise Details to Yes to display the duty Details sub form as shown below.
Introduction to VAT
VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is
the tax paid by the producers, manufactures, retailers or any other dealer who add value to
the goods and that is ultimately passed on to the consumer. VAT has been introduced in
India to ensure a fair and uniform system of taxation. It is an efficient, transparent,
revenue-neutral, globally acceptable and easy to administer taxation system. It benefits
the common man (consumer), businessman and the Government.
Enabling VAT in Tally
Gateway of Tally→ F11 Company Features→ Statutory and Taxation
VAT Details
- Select the State Name
- Set Type of Dealer
- Enter the Regular VAT applicable from date
Composite Dealers
Dealer with annual gross turnover not exceeding a certain threshold (threshold-decided by
the respective State Government) can opt for a composition scheme whereby they will
pay tax as small percentage of their gross turnover. However, retailers option for this
composition scheme will not be entitled to input credit.
VAT Rates
Input VAT @ 4%
Purchase Exempted
Input VAT @ 1%
Input VAT @ 12.5%
Output VAT @ 4%
Sales Exempted
Output VAT @1%
Output VAT @12.5%
Ledger Masters
The VAT Classification will be displayed as a drop down list in the Ledger Masters. Tally
gives the flexibility to the user, to either have the classification selected in the Ledger
Master tagged to all transactions, or, select different classifications each time during
voucher entries. This is explained in detail in the Vouchers and Transactions section.
The ledgers that are affected by VAT are:
Purchase Ledger
Sales Ledger
Duties and Taxes Ledger
Direct Expenses/Income
Create Purchase Ledger
Gateway of Tally→ Accounts Info→ Ledger→ Create/Alter.
VAT Classification – Purchase-Exempt
Create Party Ledger
Create Sales Ledger
TCS Reports
TCS reports in Tally are extensive. Statutory reports are integrated, making it convenient
to print and file reports in government prescribed formats. Additionally, a wide of range
reports such as reconciliation reports and display reports are available. These reports
provide
Information at a glance and help in managing TCS issues with ease.
1.Gateway of Tally→ Display→ Statutory Reports→ TCS Reports
2. TCS Reports menu displays the Following options.
Fringe Benefit Tax
Enable FBT in Tally
F11: Features
You can enable Fringe Benefit Tax (FBT) by
using the F11: Features screen.
1. Gateway of Tally→ F11: Features→
Statutory & Taxation
2. Set the option Enable Fringe Benefit Tax
(FBT) to Yes
3. Set Set/After FBT Details to Yes. The
Company FBT Assesse Details Sub form
appears as shoen.
Income – Tax/PAN Number
If the income Tax/PAN Number is not entered in the Company Master, the same can be
entered F11: Features under Company FBT Assessee Details.
If the Income Tax/PAN Number is entered in the Company Master, it cannot be edited in
F11: Features under Company FBT Assessee details.
Assessee Type
Set the S\Assessee Type to which your company belongs to. This information is used to
calculate the Income Tax, Surcharge and Education Cess while computing FBT.
Note:
The option is Surcharge Applicable? Is applicable only if your Assessee Type is
Association of Persons/ Body of Individuals. On setting this field to Yes in the Company
FBT Assessee Details, the surcharge is calculated in FBT Computation Report.
For the Assessee Type Local Authority, the option is Surcharge Applicable? In not
applicable.
Assessee Category
Select the appropriate assessee Category from the list.
FBT Payment
FBT Report
Gateway of Tally→ Display→ Statutory Report→ FBT Report
eTDS
The Income Tax Department has prescribed the formats for filing these returns
electronically, which the buyer does in a CD/floppy. The TDS functionality in Tally
supports the following features:
Simple and user-friendly.
Quick and easy to set up and use.
Accounting for tax on partial/ full payment of bills.
Flexibility for auto and manual calculation of TDS.
Complete tracking of each transaction from deduction to payment.
Challan management and printing for prompt and accurate filing of tax.
The Auto allocation feature prevents error-prone data entry and helps track the
transactions faster.
Form 16A management:
o Can be printed for a transactions
o Can be printed for a period
o Can be printed yearly
Allows multi-parly printing
Exporting of data in NSDL compliant TDS file format.
Electronic format (e-TDS return) with Form 26Q, Form 26, Form 27 and form
27A which will be validated by the utility, provided by the government.
Generates Form 16A, TDS Challan, and TDS Computation and TDS Payable
reports.
TDS in Tally 9.0
Enabling TDS in Tally
You can enable Tally TDS in F11: Features screen. The F11: Features button is available
in almost all screens of Tally. This screen helps you to activate the TDS feature.
Gateway of Tally→ F11: Features→ Statutory & Taxation
1. Set Enable TDS to Yes
2. Set/Alter TDS detail to Yes. You will see the advanced company
3. Set Enter TDS Dedicator Details to Yes will display the below dialog window
Name
Enter the name of the Tax ledger
Under
Select the group as Duties and Taxes from the list. On the selection of group Duties and
Taxes, you will get the option to select type of Duty/Tax.
Type of Duty/Tax
Select TDS tax type from the list
Nature of Payment
Select the appropriate TDS Nature of Payment as statutorily applicable, given/ desired by
the Govt. e.g. Fees for Professional Or Technical Services. By default, Tally provides you
with a List of TDS Nature of Payment. You need to select the appropriate TDS Nature or
Payment from the list.
Note: Nature of Payment – You will find different categories that come under the Tax Deduction. Select the
relevant TDS Nature of Payment from the List of TDS Nature of Payment that applies to your company.
Ignore TDS Exemption Limit
If the total transaction limit exceeds the actual limit you need to set the Ignore
TDS Exemption Limit field to Yes then the tax is not calculated up to exemption.
Accept the Ledger creation screen.
Creating Party Ledger
You need to create ledger for party/suppliers under the group Sundry Creditors for whom
TDS has to be calculated automatically by the system.
The options is TDS Applicable and the Deductee Type are available only for ledgers
under the group Sundry Creditors.
You can either Create/Alter a ledger to specify your TDS account details.
Gateway of Tally→ Accounts Info→ Ledgers→ Create
Name
Enter the name of the Party/Supplier, who provides to you.
Under
Select the group as Sundry Creditors from the list
Is TDS Applicable
Set Is TDS Applicable to Yes. This will open the Ledger Deductee Details sub-form.
Deductee Type
Select the Deductee Type from the list
Ignore Surcharge Exemption Limit
If Ignore Surcharge Exemption Limit is set to Yes then the exemption Limits will be
ignored.
Maintain balances bill-by-bill
By default this field is set to Yes for Sundry Creditors.
Mailing & Related Details
Enter the Mailing and Related Details like Name, Address, Pin Code and select the State
from the list, and enter the Income Tax and Sales Tax Number.
Similarly, you can create Ledgers that provide services to your company under Sundry
Creditors.
Note: If the party is a Non Resident then PIN Code, State and the Sales Tax Number fields are not
applicable
Voucher Entry
Booking for TDS Expenses
This voucher enables you to books the expenses directly and helps you to deduct the TDS
and pay the amount to the party for their services.
Select F7: Journal button to the right or press F7 to create a Journal Voucher.
Gateway of Tally→ Accounting Vouchers→ Journal Voucher
Or
Press F7 key at the Voucher Entry screen to make a Journal Voucher
This will open the Journal voucher creation screen.
1. Select Rent (under Indirect Expense) from the list in the Particulars column and
enter the Amount in the Debit column.
2. Select the Party from the list (Mohan) and the Amount appears automatically in
the Credit
3. Press Enter to view the Bill wise details sub form as displayed below:
a. Enter the Name
b. Select the TDS Ledger from the list to the right.
c. The Amount is automatically picked up by the system.
4. Accept the bill wise details sub form
5. Accept the screen to save the Journal voucher.
Note: Booking the TDS Expense can be done using the Purchase voucher available in default Tally.
TDS Deduction
TDS Deduction button is available in Journal Voucher screen. You can pass a Journal
voucher using this button to record all the Tax ledger transactions for a particular party
who provides services. The list of ledger accounts displays only those ledger accounts
enabled for the party selected.
Gateway of Tally→ Accounting Vouchers→ F7: Journal
Button from the button bar on the right- side of your screen the F7 key.
1. Selection TDS Deduction Button or Press Alt+S. you will get a list of TDS
Ledgers for the party selected
2. Select the TDS Party Ledger from the list
3. Select the TDS Ledger from the list (TDS on Technical Services). The system
calculates the Net TDS to deduct amount.
4. Select the TDS Applicable Bills from the list.
5. Accepting the TDS details sub form will post the Net TDS to Deduct amount in
the Debit column of the Journal Voucher screen. Press the Enter key to credit the
Tax Ledger (TDS on Rent). You may enter the New Reference Number for
identification and accept the screen to save the Journal Voucher.
Payment to a Party Ledger
The Entry for the Payment to a party ledger is the same as in default Tally.
1. Select the Party from the list.
2. Enter the Amount.
3. On entering the amount You will get the Bill wise details sub form. Select the
Agst Ref from the list of pending bills. Accept the Bill wise Details sub form.
4. Accepting the Bill wise sub form will display the screen shown below
5. Select the Bank or Cash from the list.
6. Accept the Payment voucher to save the entry.
Preparing TDS Challan
Gateway of Tally→ Accounting Vouchers→ Payment Voucher Or
1. Press F5 (payment Voucher) at the Voucher entry screen to make a payment
Voucher
2. Select Bank Account from the list (TDS Helper functionality in Tally gives you
tremendous flexibility to generate the payment vouchers, for any period and to
any deductee).
3. After entering all the fields in TDS filters sub form. Select the Account (Bank)
from the list.
4. Accept the Payment voucher screen to save the entry.
TDS Computation
The TDS Outstanding option in Tally TDS provides the users the facility to view all the
TDS Outstanding that is pending for payment.
Click on the Print button or use ALT+P to print the TDS Computation report. This
brings up the Printing TDS Computation configuration sub-form by which the user can
customize the appearance of the Ledger report.
TDS Payables
TDS Payable report gives you information on the status of TDS payable (Pending)
amounts for a particular TDS Ledger account.
Gateway of Tally→ Display→ Statements of Accounts→ TDS Outstanding→ TDS
Payables
The TDS Payable report provides the Outstanding for a Tax ledger accounts, e.g. TDS on
rent if you want to know the status a particular TDS Ledger, press Enter on the Ref. No.
Note: If you wish to know more details on the voucher drill down further by pressing Enter.
1. Date: Date of creation as entered in the Payment/ Journal/Purchase Voucher
2. RefNo: The payment Reference number
3. TDS ledger Name: TDS ledgers created under Duties and Taxes
4. Pending Amount: The Pending amount that needs to paid by your company to
the bank/party
5. Due on: The last date for the payment (Due date).
6. Overdue by days: The number of days passed from the date of payment.
TDS reports
Gateway of Tally→ Display→ Statutory Reports→ TDS Reports
TDS Form 16A
To Alter the column in Alters the column in all the reports which
columnar report can be viewed in columnar format
ALT + C To create a master at a At voucher entry and alteration screens, at
voucher screen (if it has a field where you have to select a master
not been already assigned from a list. If the necessary account has not
a different function, as in been created already, use this key
reports like Balance Sheet, combination to create the master without
where it adds a new quitting from the voucher screen.
column to the report)
To delete a column in any All the reports screen which can be viewed
columnar report in columnar format
To create/alter/shut a
Company
ALT + F4 To select the At Accounting / Inventory Voucher creation
Purchase Order and alteration screens
Voucher Type
ALT + F5 To select the Sales At Accounting / Inventory Voucher creation
Order Voucher Type and alteration screens