BCCA-II Tally

TALLY
Content

Unit –I

1.1 Introduction Of Financial Accounting

1.2 Advantages Of Accounts
1.3 Mannual Vs Computerised Accounting
1.4 Books Of Accounts
1.5 Financial Statement
1.6 A/C Organisation
1.7 Classification Of Accounts
1.8 Single And Double Entry System
1.9 Account Groups
1.10 Budget

Unit-II
2.1 Accounting Software
2.2 Introduction To The Tally Software
2.3 Feature Of Tally
2.4 The Tally Screen
2.5 Voucher Entry
2.6 Company Information
2.7 Working With The Multiple Companies
2.8 Company Features

Unit-III
3.1 A/C Info Menu
3.2 A/C Groups
3.3 Ledger Accounts
3.4 Cost Centre And Cost Categories
3.5 Voucher Types
3.6 Creation Of Budget
3.7 Types Of Budget

Unit IV
4.1 Inventory Info
4.2 Balance Sheey
4.3 Audit Trial
4.4 Types Of Security
4.5 House Keeping
4.6 Import And Export Data
4.7 Graphical Analysis Of Data

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evaluation for meeting regulatory

Unit –I requirements
3) Understanding the fundamental accounting
concepts
Structure The accounting equation (Assets = Liabilities +
Owners' Equity) and financial statements are the
1.1 Introduction Of Financial Accounting main topics of financial accounting.
1.2 Advantages Of Accounts The trial balance which is usually prepared using the
1.3 Mannual Vs Computerised Accounting Double-entry accounting system forms the basis for
1.4 Books Of Accounts preparing the financial statements. All the figures in
1.5 Financial Statement the trial balance are rearranged to prepare a profit &
1.6 A/C Organisation loss statement and balance sheet. There are certain
1.7 Classification Of Accounts accounting standards that determine the format for
1.8 Single And Double Entry System these accounts (SSAP, FRS, IFS). The financial
1.9 Account Groups statements will display the income and expenditure
1.10 Budget for the company and a summary of the assets,
liabilities, and shareholders or owners’ equity of the
1.1 Introduction company on the date the accounts were prepared to.
When you do the same thing to an account as its
Financial Accounting: normal balance it increases; when you do the
opposite, it will decrease. Much like signs in math:
Information developed in conformity with Generally two positive numbers are added and two negative
Accepted Accounting Principles (GAAP). It involves numbers are also added. It is only when you have
the recording and summarization of business one positive and one negative (opposites) that you
transactions and events. Financial accounting will subtract.
relates to the preparation of financial statements for
external users such as creditors, investors, and 1.2 Financial Statement:
suppliers. The financial statements include the
balance sheet, income statement, and statement of Trial Balance
changes in financial position. An explained earlier, all monetary events are
classified under into various Accounts head which
Financial Accountancy: are periodically summarised. This periodical
summary is known as Trial balance. In Double entry
Financial accountancy (or financial accounting) is the system every transaction, Debit aspects always
field of accountancy concerned with the preparation credit aspect, so in Trial Balance also, Debit and
of financial statements for decision makers, such as credit totals are balanced. In other words, Trial
stockholders, suppliers, banks, government Balance is the Closing balance of all Accounts
agencies, owners, and other stakeholders. The
fundamental need for financial accounting is to Final Account Statement ;
reduce principal-agent problem by measuring and From Trial balance the following final balance are
monitoring agents' performance and reporting the made :
results to interested users. Profit and loss (or Income and expenditure
Financial accountancy is used to prepare accounting statement) for a specific period.
information for people outside the organization or not Balance Sheet (or Statements of affairs) as on the
involved in the day to day running of the company. last date of the period.
Managerial accounting provides accounting
information to help managers make decisions to 1.3 Manual Vs Computerised Accounting
manage the business.
Financial accountancy is governed by both local and In manual book-keeping , you first create ledger,
international accounting standards. carry forward previous years closing as Opening
Basic accounting concepts Balance for the current year. Enter cash transaction
Financial accountants produce financial statements in cash book and non cash transactions in Journal,
based on Generally Accepted Accounting Principles then amounts from cash book and journal are posted
(GAAP) of a respective country. into respective ledgers.
Financial accounting serves following purposes:
1) producing general purpose financial Whenever you need to know balance of any ledger,
statements you have to total amounts in both Debit and Credit
2) provision of information used by columns of the ledger and the different is the closing
management of a business entity for balance as on the date. To prepare final accounts
decision making, planning and performance for any period, you have to compute closing balance

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BCCA-II Tally

of the ledgers for the period and then prepare a trial used to record both cash and bank transactions is
balance. From Trial balance, you post nominal referred to as a two column cash book.
accounts to Profit and loss a/c, Real and personal
ledgers to balance sheet. Journal Book

Since posting , casting and balancing all are done
manually, this leaves enough room for errors. It’s a
common scenario that Accounts are burning
midnight oil to tally Trial Balance and even after
spending few sleepless night could not match and
forced to leave an entry in final Accounts, difference
in trial Balance for which they do not have any
justification.
The journal is used as the book of first entry for all
transactions which cannot be recorded in the cash
book. In other words, all non cash transaction
should recorded in the journal. For practical
convenience, the journal is maintained by using
number of books called the subsidiary books. For
example, the following subsidiary books may
constitute the journal for an enterprise.

Computerized Accounting 1. Purchase book

2. Purchase return Book
In computerized accounting , you have to create 3. Sales Book
ledgers and enter opening balance and classify at 4. Sales return Books
this stage. Thereafter, you enter all transaction in 5. Journal Proper
vouchers. That’s all you have to do everything else
is done by the computer. General Ledger

Advantages of Computerized Accounts ; The general Ledger contains all the accounts an
Principal advantages can be listed as under enterprise. It is only a device for reclassifying and
summarizing all information recorded in the cash
1. As soon as you enter transaction in voucher, all book or journal.
books of accounts, Final Accounts gets posted The Recording of the transaction in the books of
instantly. accounts may be represented as under
2. while entering transactions, you get net closing
balance for the ledger, before after the entry 1.6 Accounts organization:
permitting you to defect any anomaly instantly,
e.g.. negative cash balance or credit balance in Ledger Accounts and groups
debtors ledger.
3. you can ser annual and/or monthly budget and Ability to organize Accounts Ledgers and groups in a
get variance report readily. You can also set versatile way without any limit on depth of nesting,
number of group and sub groups and number of
1.4 Advantages of Accounting Ledger Accounts that can be placed under any
group.
Innumerable monetary transactions occur in a
business organization. Accounting keeps a As a classic example, look at the hierarchical
systematic record of such transaction and structure of Account Group and Ledger Accounts
summarizes them through entries in various that you can achieve:
accounts. A clear picture of functioning of the
business is therefore available from accounting Expenditure Account
records. Employee Expenses
Salaries & Wages
1.5 Books of Accounts
Salaries
The books of accounts maintain by a business may Managerial Salary
be conveniently classified into cash book, Journal Technical Staff Salary Wages
and general ledger.
Permanent Workers Wages
Cash Book
Time Rated Workers Wages
This records all receipts of and payments in cash Piece Rated Workers Wages
and through cheque. Usually the deposits into bank
accounts maintain by the business, Withdrawals Temporary Workers Wages
from such a/c and cheque payment are also Apprentice Wages
recorded in the cash book. A cash book which is

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Bonus
Statutory Bonus
Ex Gratia
Incentive
Production Incentive
Attendance Incentive
Administrative Expenses :
You get organized reports with control total at each
level. The process of organization is very easy.
Plan the arrangement of groups, sub groups and
accounts and established the link just at the time of
group and ledger creation as it will always maintain
the link properly.
To keep the link and integrity consistent, it does not
allow deleting a group if any child group or ledger is
existing. Similarly, it does not allow deleting any
ledger account if voucher exist for the ledger.
It may be clearly noted that only ledgers accounts
are transacted in voucher. Groups and sub group
never participate in any voucher. They are only to
organized the ledger accounts.
1.7 Classification of account:
All accounts are broadly classified into two heads:
1) Personal account
2) Impersonal account.
The latter may be further subdivided into Real and
Nominal account.
Personal account:
It deals with the accounts relating to persons and
which takes in the following form:
Natural person: E.g. the name of an individual, the
suppliers and buyers, say Ram, Shyam, etc.
Artificial person or legal person: Any Firm,
Association, clubs, etc
Real account:
It stands for properties and assets which are broadly
classified as tangible and intangible e.g. Plant, Cash,
Land, Building etc.
Nominal account:
It relates to all expenses and losses and income and
gains. E.g. rent, salary, dividend, bad debts, etc.
Application of golden rule (i.e. rules for ascertaining
“Debit” and “Credit”)
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Tally
Personal account:
Debit – the receiver/ the person takes the benefit
Credit- the giver/the person sacrifices the benefit
Real account:
Debit- what comes in
Credit- what goes out
Nominal account:
Debit- All expenses/losses
Credit- All incomes/gains
Trial balance
It is a statement which is prepared in a separate set
of papers by taking up all the ledger accounts
balances on a particular date in order to verify the
arithmetical accuracy of the accounts in the ledger
and putting the debits in one side and credits in
another. As it is prepared by taking up the ledger
accounts balances, both debit and credit side of a
trial balance must always be equal. In other words,1)
it assures that balances which are taken from
different accounts are arithmetically correct 2) the
balances are taken and posted in the trial balance
correctly and 3) debits and credits of all transactions
are recorded. Trial balance is not a part of an
account but a statement which is prepared to verify
the arithmetical accuracy of ledger accounts.
Preparation of Trial balance:
The following three methods may be followed at the
time of its preparation:
1) Total method: Under this method, trial
balance is prepared by taking up the totals of
both debit and credit of all ledger accounts.
2) Balance method: Under this method, trial
balance is prepared by taking up the balance
of each ledger accounts only.
3) Compound method: It is the combination of
above two methods. It is also known as Total-
Cum- Balance method.
1.8 System of Financial Accounting
Broadly, two system of financial accounting are in
vogue
1) Single entry system
2) Double entry system
Single Entry system
This system is based purely on cash accounting.
Only cash transaction are taken into account and all
credit transaction and accruals are omitted. Hence it
is not possible to prepare a proper balance sheet
using single entry system usually only govt.
accounting is done on this basis and commercial
organization do not follow this system.
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Double Entry system Sales A/c

Purchase A/c
In this system, both cash and credit transaction are
recognized. All most all commercial organization
follow the system. A cost incurred i.e. (accrued ) is
duly accounted irrespective of whether it is paid or
not during the accounting period. Additionally all
transaction shall have dual aspects ( Debit and
Credit ) and that is why it’s called double entry
system. In this system for every transaction debit
and credits must be equal. For all practical purposes,
Double entry system is the accepted method of
accounting.

1.9 Account groups

Account groups provide you the ability to classify

your accounts (Ledger Accounts). Tally
automatically create a sets of predefine account 1.10 Budgets
groups called reserved groups(which can not be
deleted / Altered except the name) for each Every business has it’s objectives and goals. To
company while creating a company, to maintain reach it’s goals, it must have efficient mechanism to
consistency and integrity. set it’s target and appraisal and achievements in
respect of the target. To achieve the important
Balance sheet managerial controls, it provides flexible system of
Budget.
Liabilities
To make the analysis in winder cross sectional
Capital Account { Equity } aspects, Tally applies budgets to financial and cost
Reserve and surplus accounts. You can set flexible and independent
Loans Liabilities annual and monthly budgets for each of them and
Bank OCC A/c change them at any time as you need. The systems
Secured Loans provides
Unsecured Loans Warning during voucher entry whenever the budget
Current Liabilities exceeds and provides variance reports for actual
Duties and Taxes from budgets.
Provision
Sundry Creditors

Assets

Fixed Assets ( Immovable Property )

Investments
Current Assets
Bank Accounts
Cash in hand
Deposit assets
Loans and advances (Assets)
Stock in hand
Sundry Debtors ( A/c Receivable)
Branch / Davison
Misc. Expenses ( Assets )

Profit and Loss A/c

Revenue Accounts
Expenditure A/c
Expenses Direct ( Mfg. / Trdg. Expenses )
Expenses Indirect ( Admin. Exp. )
Income ( Revenue)

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implementation. They are more flexible. They

Unit-II are suitable to very large organizations.
Example : SAP , ACCPAC ERP etc.

iii) Special purpose Accounting software : Some

Structure
2.1 Accounting Software
2.2 Introduction To The Tally Software
2.3 Feature Of Tally
2.4 The Tally Screen
2.5 Voucher Entry
2.6 Company Information
2.7 Working With The Multiple Companies
2.8 Company Features
2.1 Accounting Software
Software are two types
1. System software
2. Application Software
System software is a computer program which acts
as a platform for application software to function
without system software, the existence of the
application software on a particular electronics data
processing unit is not possible. Application software
is a program which is designed to perform a
particular set of tasks.
Accounting software is special purpose application
software which is specifically designed to perform
the task of maintaining account and generating
financial reports. Some accounting software also
integrates the ability maintaining inventory along with
the accounting records.
A company may itself develop accounting software
by using its internal sources. Popularly such
accounting software is purchased from a third party.
In some cases the software is purchased from a third
party and later in modification at the internal level are
made.
We have already seen in the previous unit that larger
concern must choose accounting software.
Accounting software can be classified in to types.
i) Low end accounting software : They are less
expensive and easy to operate. They usually
include a standard set of functionalities which
help relatively smaller firms to process their
accounting records. Their implementation is
easy and suitable to small or medium sized
firms. Example: “Busy”, tally ver 4.5 etc.
ii) High end accounting software : they are
usually a part of an enterprise Resource
Planning system they are very expensive and
some actually take 6-7 months in their
of the accounting software designed for
particular types of business. They normally
include those features which are relevant for a
particular types of business. Due to such
software lesser customization is required and
implementation is easy. For example : Tally
Chemist is meant for the medical stores.
Some other example of Accounting Software
 Microsoft Dynamic GP
 Epicor
 Sage Mas 90/ Sage Mas 200
 Netsuit
 Everest
 Intacct
 Exact Globe, Batch 390
 Tally
2.2 Introduction to the tally software
Since inception in 1988, Tally has been the leader in
innovative business management software solutions
in India .
Today the brand is bigger than all its competitors put
together.
We've been honored with numerous accolades
internationally like.
 Accreditation by the prestigious Institute of
Chartered Accountants of England & Wales ,
 The PC Quest Users' Choice Award for 9
years in a row
 The PC World Techies' Award for 4
successive years
For over a decade now, Tally has been the obvious
choice whenever businesses (small, medium or
large) looked for a powerful solution for their unique
financial accounting and inventory management
needs.
We understand the changing world of business and
technology, and how that change affects your
growth. And we constantly strive to provide you with
leading-edge technology solutions that have
practical relevance to your needs.. because
ultimately, your success is ours.
Tally is an enterprise management software solution
with successful implementations across a diverse
range of business sectors including Manufacturing,
Distribution, Retail, Infrastructure, Logistics and
Professional Services.

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BCCA-II
It's A Complete Solution
It covers an exhaustive list of enterprise activities
including General Ledger, Accounts Payable,
Accounts Receivable, Bank Reconciliation, Order
Processing, Inventory Control, Purchase &
Receiving, Production, Bill of Material, Sales,
Voucher & Cheque Printing, Multi-Currency, Cash &
Funds Flow, Budgets and Controls, Branch
Accounting and Cost and Profit Centers . Moreover,
it is capable of seamlessly integrating with all other
software systems running within the enterprise.
It's A Truly Flexible And Scalable Solution
Tally is the ultimate in flexibility. It is inherently
scalable, it can grow with you, absorbing increased
demand without the need for additional personnel. It
features numerous parameters and fields that are
completely customizable.
It's the easiest to use:
System-wide features such as a consistent GUI
improve usability and help ease the learning curve.
Powerful "Drill Anywhere" functionality provides
access to source information at any time. An
extensive list of shortcuts dramatically reduces the
total time required for data recording.
It Connects All Your Locations Naturally
The Tally Enterprise solution features cost-effective
and instant transmission of information between
Corporate and Branch offices or factories. It allows
the business managers to easily monitor Sales,
Stock movements, Costs and Profitability at multiple
locations with a bird's eye view.
It's Seamlessly Integrated With The Internet
Tally takes full advantage of the latest e-business
and security technologies helping businesses to
reduce unnecessary paperwork throughout the
enterprise. Orders, Invoices and Reports can be
directly emailed from
Tally. Reports can be published on the Internet for
secure access over the Web.
It offers extensive Protocol Support for HTTP,
HTTPS, FTP, SMTP, ODBC, SOAP and RAW
sockets with internationally accepted Data
Interchange standards like XML, HTML, SDF and
related formats.
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Tally
It's Available For You Wherever You Are
The Tally Enterprise solution provides your users
with Real-Time Anywhere Access to your business
information. With integrated support for the wireless
technologies including GSM, SMS, GPRS etc., it
provides secure information availability even without
Internet access on PDAs, Tablet PCs and even
simple Mobile phones
2.3 Feature of Tally
Tally 7.2 incorporates collaborative technology such
as protocol support for HTTP, HTTPS, FTP, SMTP,
ODBC, and Raw Sockets with data interchange
formats like XML, HTML, HTML with XML islands,
SOAP, SDF and related formats, PKI enablement for
multiple parallel or counter electronic signatures,
rule-based collaboration supporting export, upload
and synchronization.
Tally 7.2 allows you to get the information you
require in the format you need. Just create your
format in any ODBC compliant software like MS-
Word or MS-Excel, and pull data from Tally. To
create any report you want like Audit Reports and
Schedule VI forms or internal reports. You can even
generate your export documentation by pulling data
from Tally.
Mail Tally
Harness the power of the Internet! Tally 7.2 uses the
SMTP protocol for e-mail. Now e-mail invoices to
your customer, or email your purchase order to your
supplier. In fact, e-mail any Tally report or document
as easily as you print! Even reminder letters and
statement of accounts need not be printed and
posted. Simply e-mail them. It is not only postage
cost that you save, you save on so much of your
valuable time.
E-Tally
You can improve your company's efficiency by
sharing information with your extended enterprise:
your customers, your bankers, your business
partners and other associates. Now publish all
reports and documents from Tally ees 6.3 to a
secure part of your website, using either FTP, HTTP
or secure HTTP protocols, in HTML format. You can
use this feature to inform customers the new price-
range and stocks available for sale. Or publish
reports that your CEO can access, while traveling,
using any internet browser.
XML Tally
Tally 7.2 enables you to exchange information with
non-Tally systems, using XML. You can now share
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BCCA-II
data across locations, amongst business associates
and partners, and make your workflow seamless.
You can now collaborate with others and share
information like never before.
Unique Architecture
Human interface design allows the system to unravel
the complexity chosen by the user.
Doubly Weighted Ranked Balanced Tree. High
speed cumulative total calculations - paving the path
for real-time updation of all cumulative balances at
the end of each transaction - irrespective of the
insert/alter position of the transaction, and
irrespective of the volumes being handled.
Storage and usage techniques for numbers oriented
towards accounting terminology: Sales MINUS
Purchase equals Gross Profit. However,
mathematically Sales PLUS Purchase should equal
Gross Profit.
Unlimited sub-classification and dynamic re-
classification of accounts and all related entities
(inventory, cost centers etc), provides instant
scalability from simplistic flat classification
environments to highly complex multi dimensional
reporting environments.
Separation of 'Outstanding' references from the
invoice references enabling one-to-one, one-to-
many, many-to-many adjustments of payments /
receipts against invoices/loans/other transactions
which need to be tracked.
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Tally
Technology
High-speed memory management sub-system that
enables speed of several orders of magnitude than
the OS or Complier implementations of memory
management.
Tally Fit technology allows dynamic compression of
information to fit within the available or designated
space.
Execution path trail system ensures a self contained
system for rapid debugging trial management.
Scripting Language
Tally Definition Language is a unique tool for
effective customization.
Powerful customization capability for User Interface
design, Including entry and reporting formats.
Database
Optimized database, that is network independent
and capable of complete roll-forward of transactions
in the event of posting system or network connect
failures. The database is down scalable to stand
alone workstations.
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BCCA-II Tally

Scenario management Payment :-

This voucher is used to make only payment
The "Scenario" Management capability allows you to transaction either cash or bank such that Goods
plan, as well as analyse your business performance, purchase on cash, cash payment to any person,
under varying assumptions. You can get different Expenses by cash or bank etc.
views of your accounts and inventory information by
selectively including Optional Vouchers and/or Receipt ;-
Reversing Journals and Memos. Use this feature for This voucher is used to make only received
forecasting and planning. Prepare reports including transaction from any person like cash received,
provisional figures without affecting actual accounts cheque received, goods sold by cash etc.
using reversing journals that automatically reverse.
This is useful for reporting interim statements. Journal :-
This voucher is used to make different types of
2.4 The Tally Screen: transaction like asset purchase on credit, purchase
return, sales return, depreciation of asset, good
Voucher Entry purchase on credit, goods sold on credit etc.
There are two types of voucher in tally
Sales ;-
1) Accounting Voucher This voucher is used to make only credit sales
2) Non Accounting voucher transactions
Purchase :-
Accounting Voucher This voucher is used to make only credit purchase
transactions.
i) Contra Voucher 2.5 Company Information
ii) Payment When we create a new company in tally, we provide
iii) Receipt different types of information as follows
iv) Journal
v) Sales 2.6 Working with multiple companies
vi) Purchase Tally has the capability of more than one company
being selected. This feature is useful
Contra ;- As it helps in the task of toggling different
companies. The reports can be seen for all the
This voucher is used to make only cash transaction loaded without wasting much of time.
with bank such that cash deposit in bank, cash Above we have seen that we working with three
withdrawn from bank and cash transfer from one different companies at a time
bank to another. i) Silver system ii) xyz iii) Vishal

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2.7 Company Features
1. The web installer for Tally 9 Rel 2.14 includes
stat.900 Version 75
2. We recommend Stat.900 Version 77 be used with
Tally 9 Rel 2.14
Besides offering various features which help
enhance productivity and reduce costs, Tally 9 Rel
2.14 now offers the following new and unique
benefits:
Export Reports in Microsoft Excel file format.
You can now export Tally Reports in Microsoft Excel
file format LAN support for Tally 9 Silver.
A single company data can now be accessed
simultaneously by more than one Tally 9 Silver
(Single User License).
VAT e-Returns
Tally 9 Release 2.14 enables users to generate VAT
e-Return files. At present Gujarat and Tamil Nadu
VAT e-Return files can be generated from Tally 9. V
AT e- Returns for other states shall be supported
shortly.
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Tally
Improved Data Migration Utility
Release 2.14 now comes with more efficient data
migration utility for migrating data from Tally 7.2 to
Tally 9. Other new features in Tally 9 Concurrent
Multi-lingual Capability
Operate in any language of your choice, concurrently
* Enter accounts in the language of your choice,
view reports in another language and print them in
yet another language, at the same time Enter data
using normal keyboards with Tally phonetic key
board support
* Currently, language support is available in 13
languages. Support for many more languages will be
available shortly.
Payroll
Tally 9 now offers enhanced payroll management
that includes:
Capturing of employee related information like
general employee details, payment details, statutory
details, Passport and Visa details and contract
information. Multiple methods for calculation of
salaries Auto-generation of payslips including
multiple payslip printing
Tracking of loans and advances Calculation of PF
and Gratuity
Support for Expatriate Employee processing and
generation of expiry reports
POS Invoicing Invoice printing in continuous mode
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1. Invoice printing on 40 column paper Faster data

entry and calculation
Barcode support, batch support, multi-mode
payment Integration with accounts and inventory
Unlimited Companies and Consolidation of
Companies Create and maintain any number of
companies concurrently (up to 99,999
companies) Enables grouping of companies and
provides consolidated reports Changes done in
any constituent or branch company are
automatically updated in the grouped information
Maintain multiple levels of group companies
Data Synchronisation Helps synchronise and
update data across multiple locations
Fast and easy access/exchange of business
information across offices & branches

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BCCA-II Tally

Unit-III

Structure

3.8 A/c Info Menu

3.9 A/c Groups
3.10 Ledger Accounts
3.11 Cost Centre and Cost Categories
3.12 Voucher Types
3.13 Creation of Budget
3.14 Types of Budget Click here
To Create
Ledger
3.1 A/c Info Menu
Accounting Ledger Menu
In order to select accounts into at Tally main menu
following step has to be followed.
Accounts Group
1. It contains option for all accounts masters.
Accounts Group Creation / Create New Groups
For this, it is necessary that it should be
created from time to time
At Accounts info menu , we have to select Groups, in
order to get Accounts Group menu.

In case of Accounts group Menu

i) Select create under single group, to get

accounts group creation screen.
ii) The second step to enter the following
information as follows.
Click Here To
Get A/c Group a)Accounts Group Name :- Name field
Menu b)Parent Group :- To select it
from list of groups, after that a new group
would be placed under the selected parent
group.

Accounting Info Menu

Accounting Group Menu Accounting Group Creation

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3.2 Ledger Accounts Steps to Cost Categories

Accounts Ledger Creation

In this case 2 ledgers are created

a) Cash ( Under the cash in hand Group )

b) Profit and loss a/c ( Primary Ledger )

In case of a/c info menu, one has to be select

ledgers to get Accounts Ledger Menu. For this,
select create under single ledger to get Account
Ledger creation screen. Then enter as follows.
This explained as follows:

a) Accounts Ledger Name :- Name field

b) Parent Group :- At under field

c) Account Ledger Opening Balance :- At

Opening balance field

Tally Processes as follows

Dr. ( Debit ) = for assets and Expenses

Cr. ( Credit ) = For liabilities and income

Which can be changed if necessary.

3.3 Cost Centre and Cost categories

A Cost Centre is any unit of an organisation to which
transactions (generally, revenue) can be allocated.
When only costs or expenses are allocated to these
units, they are referred to as Cost Centres. When
profits are also allocated to these units, they become
Profit Centres. You can now obtain a Profit and Loss
account of each such Profit Centre.

Cost Centre in Tally.ERP 9 allows an additional

dimension to a transaction where a Ledger account
indicates the nature of the transaction. It does not
readily disclose, except in the narration field, which
part of the organisation was involved in the
transaction.

With the help of Cost Centres, a transaction can be

allocated to it, which would then enable
accumulation of the all transactions for that particular
Cost Centre. Tally.ERP 9 gives you the Cost Centre
break-up of each transaction as well as details of
transactions for each Cost Centre.

Some examples of Cost Centres areDepartments of

an organisation - Finance, Manufacturing, Marketing,
and so on.
Products of a company.

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BCCA-II Tally

Step to create Cost Centre 3.4 Voucher Type

In, tally there are chances for the mistakes to occur,

in that case you may create new one, without
distributing the default voucher type.

Steps

1) A/c Info
2) Voucher type
3) Select Alter
4) Select Voucher to be modified

In case you want to create, a new Voucher you can

do that also.

Creation of new voucher type :

Steps

1) Select A/c Info

2) Voucher type
3) Create new voucher type
4) Enter

a) Voucher type name

b) Type of voucher
c) Voucher type Abbreviation
d) Voucher numbering method

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BCCA-II Tally

3.5 Creation of Budget

Budget Creation steps

1) A/c info
2) Budget
3) Create

3.6 Types of Budget

Setting up and managing budgets in Tally 9

A budget is a plan prepared for the flow of funds in

an organization. It contains financial guidelines for
the future plan of action for a selected period of time.
A budget helps to refine goals and use funds
efficiently. It provides accurate information for

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BCCA-II
evaluation of financial activities, aids in decision
making and provides a reference for future planning.
Multiple budgets can be created for specific
purposes in Tally. Budgets for Banks, Head offices,
Optimistic budgets, Realistic budgets, Pessimistic
budgets, and so on can be created. Departmental
budgets like Marketing Budgets, Finance Budgets,
and so on, can also be created. Budget figures can
be used in Tally to compare actuals and variances.
In Tally, you can create, alter and delete a budget.
Activating Budgets Feature
To activate the Budgets feature in Tally:
 Select F11: Features > Accounting Features
 Set Maintain Budgets and Controls? to Yes.
 Accept to save.
To create a Budget in Tally
 Go to Gateway of Tally > Accounts Info >
Budgets > Create
 In the Budget Creation screen enter a Name
for your budget.
 Select from the List of Budgets for Under field.
You can have a hierarchical setup for budgets.
In the List of Budgets, Primary is at the top of the
hierarchy and you can create more primary
budgets. Sub-budgets can be created under
Primary budgets.
 Enter the period of the budget in the From and
To fields. The period entered can be a month, a
year or any other period.
 In Set/Alter Budgets of, select
o Groups – To create a budget for a Group of
ledger accounts.
o Ledgers – To create a budget for Ledgers.
o Cost Centers – To create a budget for Cost
Centers.
 Accept to save.
Set Yes in the Groups field in the Budget
Creation/Alteration screen to set budgets for a
group or group of ledgers.
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In the Group Budget screen, select a Group from
the List of Groups and enter Account Name.
Enter the cost center for a group in Cost Center.
Select Not Applicable, if the budget is not for a
particular cost center, but for the company.
In Type of Budget, select from the following two
types.
1. On Nett Transactions Select this option to
monitor the transaction amounts, not the balances.
Nett is net of debits and credits for the specified
period. For example, Nett transactions for Indirect
Expenses are the debit amount for the specified
period after reducing the credits for the same period.
Opening and closing balances are not considered.
2. On Closing Balance Select this option to
monitor the balance of the accounts, not the
transactions. For example, balances of bank
accounts, balances of debtors.
Enter the budget amount in the Amount field.
The purpose of a budget is to control expenditure.
You can create multiple budgets in Tally, each for a
specific purpose such as for the Bank, for the Head
Office, Marketing budgets, Finance budgets, and so
on.
 Set Yes in the Cost Centers field in the
Budget Creation/Alteration screen to set
budgets for cost centers.
 In the Cost Center Budget screen, select a
Cost Center from the List of Cost Centers
and enter Cost Center.
 Enter a budget figure in Expenses for the
cost center.
 Enter a budget figure in Income for the cost
center.
o Enter Closing Balance.
 Enter more cost centers, if required, and
accept to save.
Study Material for Power Courses
BCCA-II Tally

 Gateway of Tally > Display > Trial

Balance to display the Trial Balance screen.
 Gateway of Tally > Display > Account
Books > Group Summary and select a
group from List of Groups to display the
Group Summary screen.

1. Click on Budget Variance (Alt+B) from the

toolbar to display the Budget Analysis
screen.
2. Select from the List of Budgets for
Budgets/Scenario.
3. Three columns display Budget, Actuals and
Budget Variance, respectively.

This entry was posted on Sunday, March 29th, 2009

You can modify a budget, using the alter option.
 Go to Gateway of Tally > Accounts Info >
Budgets > Alter
 In the Budget Alteration screen, modify the
fields as required. Change the period or
change budgets of Groups, Ledgers and
Cost Centers.
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« Copy / Paste Narration in Tally 9
Display Net Balances in Ledger Reports in Tally 9 »

Note: Set/Alter Budgets is set to No by default. Set

this option to Yes to alter.

Deleting a Budget

To delete a budget

 Go to Gateway of Tally > Accounts Info >

Budgets > Alter
 Press Alt+D.

Trial Balance and Group Summary have a feature

called Budget Variance. The Budget Variance
button (Alt+B) is active if Budgets feature is enabled
and at least one budget created. Budget Variance
displays Budgets, Actuals with percentage and
Variance from the budget with percentage.

1. Budget Variance can be accessed from:

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BCCA-II
Unit IV
4.1 Inventory Info
4.2 Balance Sheey
4.3 Audit Trial
4.4 Types Of Security
4.5 House Keeping
4.6 Import And Export Data
4.7 Graphical Analysis Of Data
4.1 Inventory Info.
Stock Item Classification As Raw Material, Work
In Progress, Finished Goods
As discussed earlier, Tally is flexible and can be
used in any business organization. The user can
classify stock items as per his requirements. In
manufacturing concerns the user will primarily have
three broad classifications (Stock Groups) i.e. Raw
Materials, Work in Progress, Finished Goods. All
items that that are procured to manufacture a
particular item is called Raw Material & is grouped
under the group 'Raw Materials', where as, a product
whose shape has changed, but has not reached its
finished stage is called Semi-finished item. These
items will be grouped under the Group 'Work-in-
Progress' and any item that is changed its shape /
nature completely and reached the final form is
called finished Goods and is grouped under
'Finished goods' group.
The user can also create ledgers with the name Raw
Materials, Work-in-Progress and Finished goods
under the group Stock-in-Hand. Once the user has
de-activated the option 'Integrate Accounts with
Inventory', based on the Closing balances entered
by the user, Tally automatically displays the total of
closing balances of all the ledgers grouped under the
group Stock-in-Hand.
Bill Of Material With Auto Adjustments Of Stock
In many industries, especially assembly units there
are number of components involved in the
manufacture of finished items. It is extremely difficult
to issue stock items each time a product is
manufactured. Such situations can be handled in
Tally by using Bill of Material. To create a bill of
material, create a new item (finished or intermediate
product) and specify the components that go in to
manufacturing of that finished / intermediate product.
Now, using manufacturing journal, specify the
quantity of items to be manufactured. Tally
immediately selects all items that go in to
manufacturing of the finished product and
automatically adjusts (decreases) the stock. Any
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additional manufacturing cost like wages, power,
water charges etc, can be added to the value of the
manufactured product.
How to create Bill of Material ?
-> Select Inventory Info -> Select Stock Item ->
Select Create -> In items creation screen, select F12
and activate bill of material. -> Specify item name,
Unit of Measure and other details and activate Bill of
Material for Item. Specify all the items that go in to
manufacturing / assembly of the finished product
along with quantity. Save screen.
How to create Manufacturing Journal ?
->Select Inventory Info -> Select Voucher Types ->
Select Create -> Specify name of the Journal (Mfg
Journal) -> and other details -> activate the option
'Use as a Manufacturing
Journal' and save screen.
How to enter a manufacturing Journal ?
Select Voucher Entry -> select Alt+F7 (Stock
Journal) -> Opt for Mfg Journal -> select the finished
product which is to be manufactured / assembled ->
specify Qty -> Tally automatically picks up all stock
items which constitute the finished product and also
displays the total cost of components. The user can
now add additional cost like Power charges, water
charges etc. Tally will displays total additional cost,
total effective cost and effective rate for each
finished product.
JOB-WORKING CONCEPTS - Including Sub-
Contracting
A Job-worker is one who procures materials from
your company, changes its shape and form, converts
it into a semi-finished state and returns the material
back to you. Tally user can handle Job-Working /
Sub-Contract concepts with the help of Locations
(warehouses). Each job-worker or each sub-
contractor can be equated to a location. The user
can use Stock Journals to transfer material from the
company warehouse to a Job worker / sub-
contractor and back. Hence the user can keep him
self informed of the qty of material issued as well as
qty of stock items lying with the Job worker.
Study Material for Power Courses
BCCA-II
Materials can also be transferred from one Job
worker to another, to process the material further
before the material comes back to the company
warehouse.
How to handle Job-working concepts in Tally ?
Create each Job worker / Sub-contractor as a
Location.
-> Activate 'Maintain multiple locations' in F11
(features) -> select Inventory Info -> select Locations
(Warehouses) -> select Create -> specify the name
of the Job-worker / Sub-contractor and save screen.
Create any number of job-workers.
How does Tally handle Job work process ?
Select Voucher Entry -> select Stk Journal (Alt +F7)
-> In Source column (left side), select items to be
dispatched from company warehouse (Main location)
along with the Qty and in the destination column
specify same items and mention Job worker
(location). Again using Stock Journal shows the
movement of materials back after any particular
process for e.g., the company can issue raw silk
(raw material) to a Job-Worker (Location). The Job-
Worker will process the raw silk, convert it to yarn
and send Yarn back to the company.
Additional Cost Of Manufacturing With Notional
Value And Percentage
When a product is manufactured, other than the
component cost, there are manufacturing cost like
water charges, wages, electricity etc, which will have
to be added to the cost of the product. In Tally, the
additional cost can be added to the product while
entering stock Journals or at the time of entering a
manufacturing Journal (use B.O.M). The user can
specify additional cost as a % of the component cost
or even specify a notional value.
Procedure :
Select F11 (features) -> activate 'Track additional
cost to purchases'.
Now, while entering Stock Journals, select the
manufactured item in the destination column (right
side of the Stk Journal) and specify qty and value ->
Tally, now displays another screen and the user can
enter additional cost by specifying % or providing
notional value. Tally also allows user to add
additional cost by using Manufacturing Journal.
Recorder Levels
It is imperative that Companies maintain sufficient
inventory stocks to run their business. Hence many
companies would like to maintain reorder levels.
Tally offers a facility to maintain reorder levels. The
user can define reorder levels as well as Min order
quantities for all items. The user can define Reorder
levels as well Min order quantities as per his
requirements or it can be defined based on the
consumption pattern for a given period (i.e. Days,
Months, Weeks, Years). Tally provides information
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on all inventory items that have gone below reorder
levels.
Procedure :
-> Select F11 (features) -> activate Purchase Orders
and save screen -> next, select Inventory Info ->
select Reorder level -> select All items (or particular
groups) -> specify Reorder level and Min order level
for each item (levels can also be maintained based
on the consumption pattern of the item over a
particular period) and save screen.
How to view a report ?
-> Select Display -> select Statement of Inventory ->
select Reorder Status -> select any group or all ->
Tally display complete details along with closing
balance, Purchase orders pending, Sales order due,
Reorder levels Shortfall and also order to be placed -
> to view only those items which have gone below
reorder levels select Reorder Only (Alt + L). The
user can drill down to lower levels of reports from
reorder status report, for e.g. the user can drill down
to 'Specify Reorder Level' screen from the Reorder
level column in Reorder Status Report.
Stock Ageing Analysis
This is another important report, which is useful for
the management to know how fast inventory of
various stock items are moving. This allows the
management to decide the production schedule.
This report shows ageing period for each and every
stock item. The report by default shows ageing by
date of Purchase. But the user can select the style of
ageing by selecting the option ' Ageing Style' (i.e. By
date of Purchase, By Mfg date, By Expiry Date, To
be expired). The user can also change the period of
ageing by selecting F6 option. It can also be used
with the combination of expiry date for perishable
goods and Pharma industry.
Procedure :
-> select Display -> select Inventory Books ->
Ageing AnalysisSelect F6 option for changing period,
Select Alt + S for changing ageing style Select Alt +
B for Expired Batches only
Study Material for Power Courses
BCCA-II Tally

BATCH RELATED REPORTS under Liabilities. For accounting purpose, a

Tally provides for batch wise reporting. If the
customer looks at the ageing analysis hecan view all
items with their batches along with their date of Mfg
and Expiry date. The user can also get a report of
items that have already expired or likely to expire so
that he can move them fast by offering discounts etc.
The user can also view ageing reports for all
batches.
Procedure : back to the owners. In the absence of this principle,
-> Select Display -> select Inventory Books -> select
Ageing analysis -> select any groups or all -> Tally
displays all stock items with their batch details, Mfg
date and expiry date -> select Expired batches
(Alt+B)-> Tally will display only those items have
already past their Expiry date.
company/business firm is considered as an entity
separate from its owners/promoters. This is known
as the Principle of Separate Entity. This principle
requires that every business transaction be viewed
from the perspective of the firm and not from the
point of view of the owners. It is for this reason,
that the capital represents liability for the company
as conceptually, company has the obligation to pay
it will be difficult to determine the true income (or
loss) of a business firm because there will be no
record either of the capital bought in by the owner(s)
or the withdrawals (in cash off and on) made by
them.
Let us further assume that out of Rs 30 lakh, Rs 20
nd
lakh is deposited in a bank on 2 June by Royal
Industries. As a result of this transaction, it is
imperative that cash balance will reduce to Rs 10
lakh and a new item 'Bank Balance' will appear on
the assets side.

Amount Amount
Liabilities Assets
(Rs) (Rs)
Capital 30,00,000 Cash 10,00,000
Bank
4.1 BALANCE-SHEET 20,00,000
Balance
Balance Sheet shows the financial position of a
business firm at a particular point of time. It is also 30,00,000 30,00,000
known as the statement of financial position or
statement of financial condition. Assume further the company purchases goods worth
th
Rs 6 lakh against cash payment on 4 June (Being a
The major elements of the Balance Sheet are Assets new firm, the supplier will not sell on credit and he
and Liabilities. These two counter balancing may not accept cheque either). Evidently, cash
elements form the Balance Sheet Equation. reduces to Rs 4 lakh (Rs 10 lakh - Rs 6 lakh) and a
Balance Sheet Equation: new asset in the form of 'Stock of Finished Goods'
Assets = Liabilities would appear in Balance Sheet.

Let us assume that Royal Industries, a private Balance Sheet of Royal Industries as on
limited company, has been formed by a group of 10 June 4, Current Year
st
friends on 1 June in the current year. Each friend Amount Amount
has contributed Rs 3 lakh in cash. As a result of this Liabilities Assets
(Rs) (Rs)
transaction, the company's Balance Sheet would
appear as follows: Capital 30,00,000 Cash 4,00,000
Bank
20,00,000
Balance Sheet of Royal Industries as Balance
on June 1, Current Year Stock
Amount Amount (Finished 6,00,000
Liabilities Assets Goods)
(Rs) (Rs)
30,00,000 30,00,000
Capital 30,00,000 Cash 30,00,000
Do you see a similarity here? What happens in our
personal life to our cash balance also holds true for
30,00,000 30,00,000 the business records. Cash balance gets reduced
when it is spent. Please note that no change has
taken place either in the bank balance (as the firm
It is understood that cash should appear under has neither deposited into bank nor withdrawn) or in
Assets but we need to know why capital is shown capital account. Two sides of the Balance Sheet

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BCCA-II Tally

again tally and the composition of assets only snapshot of financial position (in terms of assets
change. This equality will always exist unless the owned and liabilities owed) of a firm at a particular
accountant has committed a mistake. In operational point of time, say as on June 15. It is valid for that
terms, it implies that every business transaction has reference date/day only and its position is bound to
two-fold effect. This is called the Principle of change on the following day as soon as a new
Duality/Double Entry. Additional transactions shown business transaction takes place.
in this example will further re-enforce this contention.
th th
During 5 and 8 June, Royal Industries has cash
sales of Rs 5,00,000 (for goods costing Rs Assume that Royal Industries is a relatively known
4,00,000). Evidently, there is decrease of stock by entity and suppliers of goods and raw material are
Rs 4,00,000 (cost price) and increase in cash by Rs willing to transact business on credit basis. It
5,00,000 (selling price). The difference between purchases raw material worth Rs 3 lakh from
sales revenue and cost (that is of Rs 1,00,000) is Reliable Suppliers on credit on 18th June. This
Profit. As per the Separate Entity concept, profits are transaction will be recorded in the name of 'Stock'
payable to the owners and, hence they are liabilities (Raw Materials) on the assets side. As the sum is
of the company. payable after the expiry of the credit period (say 30
days) to Reliable Suppliers, it will be shown on
Balance Sheet of Royal Industries as on liabilities side and the two sides will be equal as per
June 8, Current Year the Principle of Duality. (Please try to prepare a
Balance Sheet on your own).
Amount Amount
Liabilities Assets
(Rs) (Rs)
4.3 Audit Trial
Capital 30,00,000 Cash 9,00,000
Bank A module which gives the entire trail of a voucher
Profits 1,00,000 20,00,000
Balance starting from when it was created and by whom and
Stock all the name of users who altered it and on what date
(Finished 2,00,000 Silent
Goods) The user never realizes that the information is being
recorded while they create or alter a voucher.
31,00,000 31,00,000
 A comprehensive report which shows when the
voucher was created and altered, no. of times by
Let us further suppose that the company decides to whom and on when.
venture into its own manufacturing activity. For this  The report can be filtered for a date range or/and
purpose, the company buys a small industrial shed for a particular voucher type.
for Rs 8 lakh and machinery for Rs 10 lakh. The
 The report can be filtered for a ledger or/and all
payment is made through a cheque on 15th June. As
the standard filter parameters in default Tally.
a result, the Balance Sheet would be (please try on
 The audit trail keeps track of all the users who
your own to draw it) as follows:
created/altered the voucher at remote location
and the voucher was synchronized to Head
Balance Sheet of Royal Industries as on June office. The report shows the entire trail with
15, Current Year name of users at remote site who contributed by
Amount Amount creating or altering vouchers.
Liabilities Assets
(Rs) (Rs)  The vouchers like sales invoice or purchase
Capital 30,00,000 Cash 9,00,000 invoice shows entire trail starting from Sales
order or Purchase order respectively. The report
Profits 1,00,000 Bank Balance 2,00,000
shall show when the sales order was
Stock created/altered and by whom, when the material
(Finished 2,00,000 was delivered and by whom and when the
Goods) invoice was created and by whom.
Building/Shed 8,00,000
4.4 Types of Security
Machinery 10,00,000
31,00,000 31,00,000 Data Reliability
Tally offers extremely high reliability data. Tally uses
a flexi-field, flexi-length, self indexed weighted file
It is important to note that the composition of the structure for a extremely compact and fast database.
Balance Sheet undergoes change with every Tally is robust and will not be affected even if there is
business transaction (not necessarily in terms of a power failure or if the machine is shut down while
gross total). Thus, in a way, Balance Sheet is a the system is still functioning and hence there will be
no data loss. Tally uses signaling quality data

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BCCA-II
integrity checks at a regular levels to ensure
complete reliability of data.
Data Security
Tally use of data integrity checks ensures that no
external change to the data can pass thru Tally. It
also uses a binary encoding format of storage to
prevent devious grouping of information. It also
offers access to the database thru an ODBC layer,
which is fully activated.
Tally Audit
Tally audit feature provides the user with
administrator rights, a capability to audit for the
correctness of the entries made by authorized users
and alter them if needed. Once entries are audited, if
there are any alterations made to those entries then
Tally will display all the altered entries along with the
name of the user who has altered the entry and date
and time of alteration.
How to activate Tally Audit ?
Tally Audit feature can be activated during creation
of Company. If the company is already created, then
he can select the particular company and then select
the option 'Comp Info' (Alt+F3) and then select 'Alter'
option.
Activate 'Use Security control' -> specify
Administrator Name & Password -> activate 'Use
Tally Audit Features' and save screen.
How to audit Transactions / masters ?
Select Display -> select Statement of Accounts ->
select Tally Audit -> select masters or Vouchers ->
Tally, now shows all the vouchers that haven't been
audited -> select F7 (accept one) and audit any entry
-> or select Alt+F7 (accept all) to audit all entries.
How to audit entries that have been altered ?
If any of the entries are that is audited is altered by
any one of the users, then Tally will reflect the same
in Tally Audit report. Once the users vouchers option
under Tally Audit, he can select F12 (Configurations)
and activate the feature 'Show entered / altered by'.
Tally now displays all the entries that are altered
along with the name of the person who has entered
it, name of the person who has altered the same and
the date of alteration. The administrator can once
again audit the entries that have been altered after
verifying the same.
Tally Vault
Tally offers a data encryption option called Tally
Vault. The Tally vault password given cannot be
broken by any means. Tally follows D E S (Data
Encryption Standard) encryption method.
How to activate Tally Vault option ?
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Tally
The Tally Vault can be activated at the time of
creating a new company or by altering the existing
company. If it is a new company, then, From
Company Info screen, -> select Create -> Specify
Company Name and other company related details -
> specify Tally Vault Password and repeat the same
and save screen.
If it is an existing company, then, Load the particular
the company -> select Comp Info (Alt+F3) -> select
Change Tally Vault -> specify New Password and
save screen.
User Defined Security Levels
Tally offers high levels of security. The user can
define multiple levels of security as per his
requirements and every authorized user in the
company can have individual passwords with rights
to use specific features only. The user with
administrator level password will have full access
and can set controls to other users.
How to activate Administrator level Password ?
Admin level password can be activated while
creating a company.
Select Create in Company Info screen -> specify
Company Name, Company address and other
company related details. -> Activate security control
-> specify administrator name -> specify password
and repeat password and save screen.
If the company is already created, then,
-> Load Company -> select Alt+F3 (Comp Info) ->
select Alter ->come down to security control and
activate the feature 'Use security control'.
How to create multiple levels of passwords ?
Load company -> select Alt+F3 (Company Info) ->
select Security control -> Types of security -> specify
name of security level and press enter -> select
basic facilities of 'Owner' -> specify 'Days allowed for
backdated Vouchers' i.e. the no. of days the user is
allowed to go back to enter vouchers from the
current . -> specify 'Cut-off date for back dated
vouchers' i.e. the last day till which the user can go
back to enter transactions -> go to column 'Disallow
the following facilities' -> specify the type of access
(i.e. Full access, Create, Create/alter, Display, Print
etc) -> select the features to be disallowed and save
screen. -> Tally allows the user to create any
number of levels.
Now, select 'Users and Passwords' under the option
Security Control -> specify Name of the user,
Password and level of password and save screen.
Simple and Rapid Installation
Tally has a simple menu driven installation
procedure. At the time of installation the user can opt
Study Material for Power Courses
BCCA-II Tally

to install the program files on any drive (i.e. if the opening balance for the next period (second
hard disk has partitions) as well as specify the company).
directory names where the program files are to be
How to split Data ?
installed. The user can also specify the location of
the data directory. It does not take more than 60 Load the company that is to be split. -> Select
seconds to install Tally on the local hard disk and Company Info (Alt+F3) -> select Split Company Data
takes only about 8 MB space in the local drive. -> select Company -> specify the date from which
the company as to be split and save screen. Tally
How to install Tally ?
splits company data as per the periods specified
Insert Tally Installation CD in the CD drive -> select
My Computers on the desktop -> select CD drive ->
Run Install.exe -> specify Path (for Program files and 4.6 Import tally Data / Export Data
data directory) -> click on Install -> After Installation
a message 'Installation Successful' is displayed -> Import TALLY Data / Export TALLY Data
Click on Ok and Tally is installed. The Tally icon is Tally allows users to Import data from other
created on desktop. software's as well as Export data from Tally to other
software's. Tally allows users to Import and Export in
Unlimited Multi-User Support
ASCII, SDF and XML formats. XML is now the most
A Multi-user Version (Gold) of Tally can be installed widely used format of exporting data in the world.
on a network having any number of machines Any transactions can be exported from Tally and
(computers) working with different operating systems imported in other software after suitably altering the
like NT, Win 95, 98, Win 2000. Tally works on any current structures to accept Tally data structure. The
kind of network (i.e. NT, Novell, Peer-Peer N/W etc). reverse is also possible by writing a small TDL
The protocol needed to detect the lock is TCP/IP. program to accept the data from other software's.
The data that is to be imported into Tally can be in
4.5 House Keeping
either XML or DBF format. Easy Tally data transfer
Internal Backup / Restore or Tally data migration from Tally 4.5 & Tally 5.4 to
Tally 6.3 , Tally 7.2 , etc.
Tally has an in built user friendly Backup and
Restore option. The user can take a backup in the ODBC COMPLIANCE ALLOWS OTHER
local hard disk or in any external media. Tally PROGRAMS TO USE DATA FROM TALLY
provides the user with capability to take backups of DIRECTLY. E.G. : MS-EXCEL :
one or more companies or all companies in a single
ODBC - OPEN DATABASE CONNECTIVITY
directory.
Tally is now ODBC compliant. Hence, any program
How to take a backup ? like MS-Excel, Oracle etc that is ODBC compliant
can use data from Tally. Here, data connectivity is
In Company Information screen -> select Backup ->
dynamic i.e. any new updation in Tally is reflected in
select Source directory and path -> select
other ODBC Compliant Software immediately. Now,
Destination (specify path) -> select the companies
with ODBC facility the user can extract data out of
for which the back up has to be taken. And save
Tally and design his own report formats in other
screen
ODBC compliant software's.
How to restore data ?
Procedure :
In Company Information screen -> select Restore ->
specify destination (specify path)-> select source Now, Load Company -> specify period -> minimize
(specify path) -> select the companies for which Tally -> Open a new Excel file -> select data ->
have to be restored And save screen. select 'Get External Data' -> select New database
query -> choose Data Source
Removal of Data Into Separate Company
Tally allows users to maintain a company for any
number of financial years. Once the books of
accounts are completed for previous financial years
and if the user wishes, he could split the company
data into multiple companies as per financial periods
required. Tally offers a feature of splitting company
data. The user can specify the date from which the
company has to be split and Tally will split the
company to form two companies as per periods
specified. Once the data has been split, the closing
balance of the first period (first company) becomes

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Tally connects to data source and displays Tally
Wizard query screen -> select the columns you
would want to include in the query.
Once all the columns are selected, the user returns
to excel and excel displays all the columns selected
-> Now, select the second worksheet and design
reports as per requirements.
4.7 Graphical Analysis of Tally Data
Sometimes, pictures can say better than figures.
Tally also provides graphical (Bar graph) analysis of
data. The user can do a graphical analysis reports
like Sales register, Purchase register, Ledgers,
Funds flow, Cash flow, Item registers etc. This helps
the user in deeper analysis of data. In Tally, a
graphical analysis can also show month wise graphs
for the year in comparison with any other period.
This will help the management in quickly locating the
highs and lean periods in a financial year and hence
be better prepared for difficult times.
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Tally
Comparison for e.g. Sales Registers (Month wise) :
-> Select Display -> Select Account Books -> select
Sales Register -> select Alt + C (new column) ->
specify previous financial year date and save. Tally
shows month wise comparisons.
Web Enabled
Tally ees 6.3 is now Web enabled. This will help the
user in reducing his paper work further. Now, report
in Tally can be e-mailed directly from Tally. It is not
just reports, but even invoices and purchase orders
can also be e-mailed directly from Tally. Hence, the
user does not have to send printed invoice or
purchase orders from Tally.
Procedure :
Select any report (e.g. Balance sheet) -> select
Alt+M (E-mail) -> specify all details as required by
Tally
Ability to Publish Reports and Documents on the
Internet
Now, Tally allows users to upload reports on the web
site directly from Tally. So companies that would
want to publish reports on the web site can do so
directly from Tally. Many companies would also like
to publish their price list on their websites along with
the product they deal with.
Procedure :
Select any report (Profit and Loss A/C) -> select
Upload (Alt + O) -> specify all details as required by
Tally.
Direct Internet Access
Tally now offers direct Internet access. A Tally user
while working on Tally can directly log on to tally
website get details of all the facilities offered by
Tally. The user can also download the latest
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releases of Tally 6.3 as and when available. Tally
website also offers a facility of Tally Chat. Any user
can now chat with a Tally representative and get any
information regarding Tally.
Procedure :
Start Tally -> now, from any screen select Web
Browser (Alt+W). Tally now takes you to the Tally
Web site.
Print Preview
Any user would ideally like to view format of reports /
Invoices / Vouchers before printing the same. Tally
now offers a facility of print preview. Now any report
can be viewed before printing or before it is mailed.
Once Tally shows the preview the user can either
opt to print or mail the same.
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Tally
Protocol Support
Protocol Support for HTTP, HTTPS, FTP, SMTP,
ODBC, and RAW sockets with data interchange
formats like XML, HTMNL, HTML with XML Islands,
SOAP, SDF and related formats.
Formats :
XML : Extensable Markup Language
HTML : Hyper Text Markup Langauage
SOAP : Simple Object Access Protocol
SDF : Standard Data Format
Formats, here means the standard for Information to
be generated from Tally or from other applications
that can exchange data with Tally.
Protocol (Transport) :
HTTP : Hyper Text Transfer Protocol.
HTTPS : Hyper Text Transfer Protocol (Secure)
FTP : File Transfer Protocol
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