Tally Prime Book

Tally Prime full e-Book Accounting
Based on New Edition and Syllabus for Tally Users
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Author-Deepak Prasad Home Page 1

PREFACE
This e-Book is intended for students or Business operators who want to learn all features of Tally Prime
& Its Accounting Treatments.
There are so many books or e-books on Tally Prime. But Students starting Basic to Advance Tally
Accounting feel difficulty in the subject and its concepts. There are two main reasons for it. Firstly, they
lack of basic concept of theories and secondly, there are unable to decide how to proceed for solution of
different types of problems. So many main concern in this book has been to impact concept of
fundamental and approach to the problems i.e., how to think and proceed for solution.
Once the students or business operators start proceeding in the right direction with sound knowledge of
fundamental and confidence, there are no questions that he will fail to solve any accounting problem in
Tally Prime. The numbers of books is not important, what matters most is the approach and
conceptions.
Some salient features of this e-book are:
✓ Stress has been laid on fundamentals.

✓ In each chapter features of Tally Prime have been divided into various types and working rules
for solving them have been given.
✓ Almost all problems asked at different accounting interview.
✓ The e-Book contains sufficient materials and exercise for Tally users and all business operators.
✓ The e-Book covered all advance features and its accounting treatment in simple language.
✓ The e-Book covered all GST features and its accounting according to updated provision in GST by
Indian Government..
✓ The e-book covered all useful Technical features of Tally Prime.
✓ In this e-Book also provides all most important keyboard shortcuts to easier operate Tally Prime
by Tally Users.
Suggestions for further Improvement of e-book will be thankfully accepted.
First Edition: March 2021 Author

Price: ₹ 399 Deepak Prasad

Contents
Tally Prime Full Course e-Book
Chapter-1: Basic Accounting & Inventory in Tally Prime………1-97
Chapter-2: Advance Accounting in Tally Prime…………………….98-128
Chapter-3: Advance Inventory in Tally Prime………………………129-164
Chapter-4: GST in Tally Prime……………………………………………..165-280
Chapter-5: TDS & TCS in Tally Prime……………………………………281-311
Chapter-6: Payroll Processing In Tally Prime………………………..312-407
Chapter-7: Technical Advantage features in Tally Prime………408-433

Tally Prime Basic Accounting & Inventory
Chapter-1: Basic Accounting & Inventory in Tally Prime

*What is Tally Prime?.............................................................................................................................. 2
BASIC TERMINOLOGY FOR ACCOUNTING IN TALLY PRIME .................................................................... 3
ACCOUNTS AND ITS TYPES ...................................................................................................................... 6
Rules for Accounting in Tally Prime ........................................................................................................ 7
*Create, Alter, Open, Shut Company in Tally Prime Class-1 ................................................................... 8
*How to Create Company (Regular) in Tally Prime? .......................................................................................... 8
*How to Create Group Company in Tally Prime? ............................................................................................. 10
*How to Alter (Changes) in Company in Tally Prime? ...................................................................................... 11
Create & Alter of Groups in Tally Prime Class-2 ................................................................................... 11
*What are Groups in Tally Prime? .................................................................................................................... 11
*How to create Group in Tally Prime? ............................................................................................................. 14
*How to Alter (Changes) in Group in Tally Prime? ........................................................................................... 15
Create/ Alter/Display of Ledgers in Tally Prime Class-3........................................................................ 16
*How to Create Single Ledger (Account) in Tally Prime? ................................................................................. 16
*How to Create Multiple-Ledger (Account) in Tally Prime? ............................................................................. 17
*How to Alter/Display Ledger (Account) in Tally Prime? ................................................................................. 17
Create/Alter/Display Vouchers Type in Tally Prime Class-4 ................................................................. 17

*What are Vouchers in Tally Prime? ................................................................................................................ 17
*How to Create Voucher in Tally Prime? ......................................................................................................... 18
*How to Alter/Display Voucher in Tally Prime? ............................................................................................... 18
Create/Alter/Display Inventory Masters in Tally Prime Class-5............................................................ 19
*What is Units in Tally Prime? .......................................................................................................................... 19
*How to Create Simple Unit in Tally Prime? .................................................................................................... 19
*How to Create Compound Unit in Tally Prime? ............................................................................................. 20
1. What is Stock Groups in Tally Prime? ...................................................................................................... 21
*How to Create Stock groups in Tally Prime? .................................................................................................. 21
2. What is Stock Category in Tally Prime? ................................................................................................... 22
*How to Create Stock groups in Tally Prime? .................................................................................................. 22
3. What is Stock Items in Tally Prime? ......................................................................................................... 23
*How to Create Stock item in Tally Prime? ...................................................................................................... 23
*How to create multiple Stock Items in Tally Prime? ....................................................................................... 24
*How to Alter/Display Stock Item in Tally Prime? ............................................................................................ 24
How to Pass All Voucher Entry in Tally Prime Class-6 ........................................................................... 25
Author- Deepak Prasad Page 1

1. Contra Voucher (F4) .............................................................................................................. 25

2. Receipt Voucher (F6):............................................................................................................ 28
3. Payment Voucher (F5): ......................................................................................................... 30
4. Purchase Voucher (F9): ......................................................................................................... 33
5. Sale Voucher (F8): ................................................................................................................. 38
6. Journal Voucher (F7): ............................................................................................................ 44
7. Memorandum Voucher: - ..................................................................................................... 45
8. Reversing Journal Voucher: - ................................................................................................ 47
Scenario: - ..................................................................................................................................... 49
9. Rejection in Voucher (Ctrl+F6): - ........................................................................................... 51
10. Rejection out Voucher (Ctrl+F5): - ..................................................................................... 53
11. Credit Note Voucher (Alt+F6): - ......................................................................................... 54
12. Debit Note Voucher (Alt+F5): - .......................................................................................... 60
13. Purchase Order Voucher (Ctrl+F9):.................................................................................... 67
14. Receipt Note Voucher (Alt+F9): - ....................................................................................... 70
15. Sale Order Voucher (Ctrl+F8): ............................................................................................ 73
16. Delivery Note Voucher (Alt+F8): - ...................................................................................... 76
17. Stock Journal Voucher (Alt+F7): - ...................................................................................... 79
18. Physical Stock Voucher (Ctrl+F7): ...................................................................................... 82
19. Job Work in Order Voucher: ............................................................................................. 83
20. Material in Voucher: ......................................................................................................... 87
21. Job Work Out Order Voucher: .......................................................................................... 90
22. Material Out Voucher: ...................................................................................................... 94
*What is Tally Prime?

Tally Prime is accounting software. Which is usually used to calculate a company’s financial
Transaction in business. Tally is used to manage the stock of goods in a company, to protect
expenditure on goods and information related to the product. Tally prime Develop by “Tally
Solution Private Limited” Software Company whose headquarter is Located in Bangalore. It
is used for Small & Medium type Businesses.

BASIC TERMINOLOGY FOR ACCOUNTING IN TALLY PRIME
*ACCOUNTING: - Accounting is a process of Identifying, Recording, Summarizing and

Reporting economic information of transaction of goods or services of on significant manner
for decision makes in the end of financial year of financial statements. It is also called life
blood of business
*TRADE: - Trade is the activity of buying and selling of goods or services for earning purpose
of profit.
*PROFESSION: - Any types of work that needs special training or a particular skill and high
level of education for purpose of earning income.
Ex: - Teacher Engineer, Lawyer etc.
*BUSINESS: - Business is such recognized work which is done for purpose of earning profit
and income. Buying and selling as way of earning money include in it.
NOTE: - 1.✍Trade and Profession are part of Business.
*OWNER:- A person or groups of person who operate the trade invest capital in business
and also bear his losses in business.
NOTE: - 1.✍ if owner is a single person then called him Proprietor.
NOTE: - 2.✍If owner is two or more than two persons then called them Partners.
NOTE: - 3. If owner is a group of persons or company then called them Shareholders
*GOODS: - Any types of tangible things that are used for trade or se selling and buying.
Ex: - Ready-mades clothes, Row material of clothes
*PURCHASE:- Bought the goods in trade for selling purpose is called purchase.
Purchase can be cash or credit.
*SALES:- Sales is goods sold by a businessman from his business to own customer.
It can be in cash or credit.
*PURCHASE RETURN/REJECTION IN/OUTWARD INVOICE: - Purchase return means the

return of the full or a part of the goods purchased by the owner of Business to their
suppliers.
*SALE RETURN/REJECTION OUT/INWARD INVOICE: - Sales return means the return of the
full or a part of the goods sold by the customer to his Businessman.
*STOCK: - Any amount of goods available in our business's Godowns in present time.
Ending of financial year available stock is called Closing Stock and starting of financial
year available stock is called Opening Stock.
*DRAWING: - Drawing are the amounts withdrawn by the owner of Business from own
business for his personal, private and domestic purpose.
Drawing may be in the form of Cash, Goods or Assets of his business.
*DEBTORS: - Debtors is the person who gives/owes amount of money or valuable things to
the Businessman.
*CREDITORS: - Creditor is the person whom amounts are taken/owed by the Businessman.
*EXPENSES: - All money/cost are invested in production and selling of goods.
There are two types of expenses:-
(1).DIRECT EXPENSES: - Direct expenses are those expenses that are invested in production of
goods to selling of goods.
Ex: - wages, factory electricity bill, fuels.
(2). INDIRECT EXPENSES: - Indirect expenses those expenses that are invested in office and
selling related.
Ex: - commission paid, interest paid, depreciation, advertisement etc.
*REVENUE: - It is the income generated from sale of goods or services in market or to

customer.
*INCOME: - If we subtracted the expenses from revenue, we get income.

Net Income= Revenue - expenses.
Incomes are two types:-
(1). DIRECT INCOME: - All types of incomes, we earn from our main business.
Ex: - income from sale of goods.
(2). INDIRECT INCOME: - Indirect income is one which earned by the way of non Business
activities.
Ex: - sale of old newspapers, sale of cartoon boxes, commission received, and interest
received etc.
*DISCOUNT: - A discount is a reduction in usual or real price of something.

There are four types of discount:-
(1). TRADE DISCOUNT: - It is allowed for manufacturers to dealers, dealers to wholesalers, and
wholesalers to retailers in goods.
(2).CASH DISCOUNT: - It is allow at the time of CASH payment.

Ex: - Cash paid in given time at @5% discount.

(3). COMMUDITY DISCOUNT: - This is quantity based discount.

Ex: - Buy '2' get '1' free.
(4). SPECIAL DISCOUNT: - It is allowed to permanent customer on the special occasion.

Ex: - Diwali offer for special customer.
*BAD DEBTS: - A bad debts is a receivables amount that a customer will not pay by any
types of reason.
*TRANSACTIONS: - All types of receiving and paying or exchange in goods or Cash is called
transactions.
Transactions can be in Cash or credit.
*VOUCHER: - A voucher is certificate or documents that can be used as proof in future for
buy or sell of goods or services.
Ex: - Receipt, Bill, Slip, Cheque etc.
*ASSETS: - Assets are things and properties in business which is not for resale but also for
the use in the business.
There are two types of Assets:-
(1) FIXED ASSETS: - Such assets purchased for use only not for resale.
Ex: - Machinery, land, trademarks etc.
fixed assets are two types:-
(a). TANGIBLE FIXED ASSETS: - It has physical existence that means we can touch it as
physically.
Ex: - land, Building etc.
(b). INTANGIBLE FIXED ASSETS:- It has not physical existence that means we cannot touch it
as physically but derived its value.
Ex: - Goodwill, Trademarks, Copyright etc.
(2). CURRENT ASSETS: - Current assets are convertible into Cash in short period of time or one
calendar or one financial year.
Ex: - Cash-in-hand, Cash-in-bank, stock of goods, debtors etc.
*LIABILITIES: - All amounts are payable by a business to any person or outsiders.

There are two types of liabilities:-
(1). SHORT-TERM LIABILITY/CURRENT LIABILITY:- These liability has to pay within one
calendar year(within 12 months) or financial year.
Ex: - short term loan, bills payable, creditors etc.

(2). LONG-TERM LIABILITY/FIXED LIABILITY: - These liabilities have to pay after one calendar
year (after 12 months) or financial year.
Ex: - Long-term lone, Debenture etc.
*CAPITAL: - Capital in is the amounts of goods or assets invested in starting time of

Business by owner of Business in business.
There are two types of capitals:-
(1).FIXED CAPITAL: - These capitals are invested in business for once time.
Ex: - Machinery, Furniture, Credit Purchase etc.
(2).WORKING CAPITAL: - These are invested in business day-to-day working time.

Ex: - Cash etc.
ACCOUNTS AND ITS TYPES
*ACCOUNT (A/C):- Account is a record of transaction which may belong to person, company
assets, liabilities and income & expenditure.]
NOTE: - 1. Father of Accountancy name is FRA LUCAS PACIALI
There are two types of Accounts:-
(1). PERSONAL A/C:- This Account are related to any person, company, firm, organization.
Ex:- Ram A/c, Mohan A/c, Reliance, Airtel,SBI Bank,PNB bank,ABC partnership, Royal Kolkata Golf
Club etc.
There are two types of personal account:-
(a) NATURAL A/c:- It is related to only person or human beings.
Ex: - Ram A/c, Mohan A/c etc.
(b). ARTIFICIAL A/c:- It is related to only Company, firm, organization.

Ex: - Jio, Airtel, SBI Bank, PNB Bank etc.
(c). REPRESENTATIVE A/C:- These Account are represents a certain person or groups of person.
Ex: - Capital A/C, Drawing A/C etc.
(2). IMPERSONAL A/C:- These Account don't related to any person, company, firms, organization.
Ex: - furniture A/c, Machinery A/c, Land, Building, Salary, Wages, Commission receive etc.
There are two types of impersonal A/c:-
(a).NOMINAL A/C:- It is related to Income or gain, expenses or Losses.

Ex: - Salary, wages, commission, interest, purchase, sale etc.
(b). REAL A/C:- Real account is related to Assets or Properties.

Ex: - Building, Furniture, Land, Trademarks etc.
Real account are two types:-

(१). TANGIBLE REAL A/C:- All Assets or Properties which we can touch and see.
Ex: - Building, Furniture, Land etc.
(२). INTANGIBLE REAL A/C:- All Assets or Properties which we cannot touch as physically only
derived or feels its value in Market.
Ex:- Trademarks, Goodwill, Copyright etc.
Rules for Accounting in Tally Prime
Golden Rule/Traditional Rule/English System
Types of Accounts Debit (Dr) Credit (Cr)

Personal A/c Receiver Giver
Real A/c What comes in What goes out
Nominal A/c All expenses or losses All income or gain
• Steps for Entry of Daily Transactions (Journal Entry) in Business.

Step.1:- Find out Affected “Two Accounts” in Transactions
Step.2:- See “Type of Accounts” Which is affected
Step.3:- Apply “Debit (Dr) & Credit (Cr) Rules {Golden Rule}” on Affected Accounts
*Some Solved Questions to Clear concepts of Golden Rule

Q. (1) Business started with cash ₹ 200000?
Ans.:- Step.1:- Find out Affected “Two Accounts” in Transactions

Two Accounts are “Capital” & “Cash” in Transactions

Capital is “Personal Account” & Cash is “Real Accounts”
Capital – Personal Account – Giver – Credit (Cr)
Cash – Real Account – Comes in – Debit (Dr)
Journal Entry of this above Transaction example
1. Cash Account ……. Dr – ₹ 200000

To Capital Account – ₹ 200000
Q. (2) Goods Purchased from Himanshu ₹ 10000?


Two Accounts are “Purchase” & “Himanshu” in Transactions

Purchase is “Nominal Account” & Himanshu is “Personal Accounts”
Himanshu – Personal Account – Giver – Credit (Cr)
Purchase – Nominal Account – Expense– Debit (Dr)
Journal Entry of this Transaction
2. Purchase Account ……. Dr – ₹ 10000

To Himanshu Account – ₹ 10000
Q. (2) Goods sold to Ritesh ₹ 12000?

Two Accounts are “Sale” & “Ritesh” in Transactions

Sale is “Nominal Account” & Ritesh is “Personal Accounts”
Ritesh – Personal Account – Receiver – Debit (Dr)
Sale – Nominal Account – Income– Credit (Cr)
Journal Entry of this Transaction
1. Ritesh Account ……. Dr – ₹ 12000

To Sale Account – ₹ 12000
NOTE: - 1.✍‘By’ Means ‘Dr’ &‘To’ Means ‘Cr’
*Create, Alter, Open, Shut Company in Tally Prime Class-1
• How to Create Company (Regular) in Tally Prime?

Step1:- Gateway of Tally > Alt+K > Create

➢ After go through the above Step, Screen will be Appear like this:-
➢ Fill the information related to your company like, Name of Company, address of
company, contacts details and other information.
• Company Name: Enter company name in this field like, Tata Company
• Mailing Name: Type Company’s Short name here for Show in Invoice/Bill
• Address: Enter company address
• State: Select State like, Bihar or Delhi
• Country: Select country
• Pin Code: Enter pin code
• Telephone: Enter telephone number
• Mobile No: Enter mobile number
• Fax No: Enter Fax number
• Email: Enter your company official communication mail id
• Website: Enter your company website address
• Financial year begins from: Enter financial year begins from like, 01.04.2021
• Books beginning from: Most of the cases financial year begins date from and books
beginning date from are same but when you have created a company in Tally Prime on
01.07.2021, in this case financial year begins from 01.04.2021 and books beginning date
from 01.07.2021.
• Set TallyVault Password to encrypt Company Data: Yes
• TallyVault Password: type your password
• Confirm TallyVault Password: Again Type your Password
• Control User Access to Company Data: No
• This is very useful option in Tally by activating this option you can avoid unauthorized access
of company data by Other User.
• Base Currency symbol: ₹ Currency symbol of the country
• Formal Name: INR is formal name Indian Home currency
• Is Symbol Suffixed to Amounts: If required you can enable this option, the purpose of this
option is whether currency symbol is required prior to amount like, ₹860
• Add space between amount and symbol: Yes, this is like space between amount and
currency symbol ₹ 650
• Show Amount in Millions: For Show balance sheet and other reports in Millions example,
Rs.1000000 is equal to 1 Million.
• Number of decimal place: Generally will use 2 decimals for paisa purpose in India like,
Rs.88.45.

• Word representing amount after decimal: It is by default set as paisa, Because Small
Currency Value in India is Paisa.
• No. of decimal places for amount in words: This is for decimal places for amount in words,
type ‘2’.
 Fill All Option in Company Creation Screen like following screenshot:
➢ After Fill All Option in Company Screen Press ‘Ctrl+A’
*How to Create Group Company in Tally Prime?

Step1:- Gateway of Tally > Alt+K > Create > Alt+R
➢ After Follow above Step Screen will open like this, Fill all option in group company
creation screen Like Name of group Company, Mailing Name, Select Members
Companies for Group Company etc. As Following :
➢ After Filling all Option Press ‘Ctrl+A’ or Enter

*How to Alter (Changes) in Company in Tally Prime?

Step: - Gateway of Tally > Alt+K > Alter
➢ After go through the above Step, Companies will alter or edit their information when they
have changed company address or contact number or email and other any information.
*How to Delete Company in Tally Prime?

Step: - Gateway of Tally > Alt+K > Alter > Alt+D > Press Two times ‘Enter’ Button
*How to Shut (Close) Company in Tally Prime?

Step: - Gateway of Tally > Ctrl+F3 > Select company for close > Enter
*How to Open (Select) Company in Tally Prime?

Step: - Gateway of Tally > Alt+F3 > Select company for Open > Enter
*How to Change Company in Tally Prime?

Step: - Gateway of Tally > F3 > Select company for Change > Enter
Create & Alter of Groups in Tally Prime Class-2
*What are Groups in Tally Prime?

The group is a collection of leaders of the same natures. Tally software automatically creates
28 groups that are used in the account chart. Out of 28 predefined groups in tally, primary
groups are 15, and the sub-groups are 13. The different types of groups are as follows:-
1. Primary Group
2. Sub Group
1. Primary Groups
This group is the main group. Primary groups are at the top of the hierarchy. Among
15 groups, 6 groups are profit and loss a/c items, and 9 groups are balance sheets
items.
List of Primary Group in Tally Prime

1. Branch/Division 6. Current Assets 11. Indirect Income
2. Capital Accounts 7. Fixed Assets 12. Misc. Expenses
3. Loans 8. Investments 13. Purchase Accounts
4. Suspense Account 9. Sales Accounts 14. Direct Income
5. Current Liabilities 10. Indirect Expenses 15. Direct Expenses

2. Sub Groups
This group is part of the primary group. It can be divided into 13 groups.
List of Sub Group in Tally
1. Sundry Creditors 6. Secured Loans 11. Bank Accounts

2. Stock in Hand 7. Deposits 12. Cash in Hand
3. Duties & Taxes 8. Banks OD Accounts 13. Loan & Advances (Assets)
4. Unsecured Loans 9. Provisions
5. Reserves & Surplus 10. Sundry Debtors
1. Bank Accounts: - Bank Accounts Group includes all bank accounts. Except bank loan
account.
Ex.- HDFC Bank A/c, Bank of India A/c
2. Bank OCC A / c: - Bank OCC A / c means Bank open cash credit A / c All Bank Loan
OCC A / c is included in this group. If we have taken a loan from a bank. So that
account will be included in the Bank OCC A / c Group.
Ex:-IDBI Bank Loan A / c, HDFC Bank Loan A / c
3. Bank OD A / c: - Bank OD A / c mean Bank Overdraft A / c. All Bank Overdraft A / c are

included in this group. If we have over drafted the account with a bank. So it is included in
this group.
Ex: IDBI Bank OD A / c, HDFC Bank OD A / c
4. Branch / Divisions: - If there is a large scale of work in our company i.e. our company is a
branch in any other new area also. And we also get money from those branches. So all the
accounts related to that Branch / Divisions are kept in the Branch / Divisions Group. The
nature of this group is Asset.
Ex: ABC Textiles Patna A / c, XYZ Textiles Sasaram A / c
5. Capital Account: - The Capital Account Group includes the accounts of the owner of the
Company (Ledgers). Such as: - If the owner of a company is Ram. So, Ram A / c.
6. Cash-in-Hand: - There is no need to make Cash Ledger in Tally. Because Cash account is
already made in Tally. However, sometimes Petty Cash account is created by the company.
Ex: Petty Cash A / c
7. Current Assets: - All types of assets that can be easily converted into cash are called Current
Assets. If we have given Advance Payment to a firm, company or individual. So we will give
the Current Assets Group to those Ledgers.
Ex: Prepaid Rent, Mutual Fund.
8.Current Liabilities: - If we have taken any Advance Payment or Loan from a firm, company or
person etc. So we will give the Current Liabilities Group to those Ledgers.

Ex: All Bill Payable, CGST Payable
9. Deposits (Asset): - If we have made any investment or any fix Deposits in our business and
we know that after several years our investment will be completed, then we will give
Deposits (Assets) Group while creating such Ledger.
Ex: Security Deposit, Office Rent Deposit
10. Direct Expenses: - If there is any direct expenditure in our business. That is, the
expenditure incurred at the time of purchasing goods or at the time of production of goods.
So while making Ledger of all those expenses, they will give them Direct Expenses Group.
Ex: Transport Expense, Freight Expense.
11. Direct Incomes: - If there is any kind of direct income in the business. That such income,
which is related to the sale of goods, will be given by the Direct Income Group while making
the Ledger of such income.
Ex: Freight Charges Income, Transport Charges Income
12. Duties & Taxes: - Duties & Tax Group is provided for all types of Tax related accounts
(Ledgers) in business.
Ex: Input CGST, Input SGST
13. Fixed Assets: - The presence of the business will give Fixed Assets Group when creating
Ledgers of all types of fixed assets. These permanent assets are also helpful in the running of
the business.
Ex: Land, Computer
14. Indirect Expenses: - Expenses which are not related to the purchase of goods or
production of goods in the business. So while making the Ledgers of such expenses, they will
be given the Indirect Expenses Group.
Ex: Telephone charge, Salary
15. Indirect Incomes: - If there is any kind of indirect income in the business. Income that is
not related to the sale of goods. So when making Ledgers of all that income, Indirect
Incomes Group.
Ex: Interest Received, Discount Received
16. Investments: - If we invest in business for a long period. And we do not know whether this
investment will result in Profit or Loss. So the Investment Group will give the accounts of
such Investments.
Ex: Long term investment, Investment in Shares
17. Loans & Advances (Asset): - If we give Advance Payment or Loan to any party in business.
So, such Ledgers are given the Loans & Advances (Asset) Group.
Ex: Loan Give to Friends, Relatives and company.

18. Loans (Liability): - If we take Advance Payment or Loan from any party in business. So such
Leaders are given the Loans (Liability) Group.
Ex: Loan from Outside Party etc.
19. Provisions: - Provisions Group will give all those accounts (Ledgers). Which we have to pay
in future.
Ex: Audit Fees Payable, TDS Payable
20. Purchases Accounts: - In the business, the Purchase Accounts Group gives all the ledgers
for the purchase of goods and Return of goods.
Ex: Purchase Local, Purchase Interstate etc.
21. Reserves & Surplus: - Reserves & Surplus Group will give accounts related to reserves and
surplus. Ex: General reserve, All Type Reserve etc.
22. Sale Accounts: - In the business, the Sale Accounts Group gives all the ledgers for the Sale
of goods and Return of goods.
Ex: Sale Local, Sale Interstate etc.
23. Secured Loans: - If we have taken such a loan in business, Except for the bank. Which has
to have some security, so all those accounts (Ledgers) will be given Secured Loan Group.
Ex: Gold Loan, Car Finance Loan etc.
24. Stock-in-Hand: - Stock-in-Hand Group will give Stock related accounts in the business.
Ex: Opening stock, Closing Stock etc.
25. Sundry Creditors: - The person, institution, firm or company or other in the business, from
whom we purchase goods on credit and the parties we have to pay money.
Ex: Mohan A/c, Danish A/c etc.
26. Sundry Debtors: - The person, institution, firm or company, or other in the business to
which we sell of goods on Credit and the parties we have to take money from.
Ex: Rohan customer A/c, Jacks Debtor A/c etc.
27. Suspense A / c: - If there is no address of payment or Receipt of any party in the business.
So Suspense A / c Group is given to such accounts.
Ex: Party Suspense A / c etc.
28. Unsecured Loans: - In business, if we have taken a loan from a friend or relative.
Unsecured Loan Group will give all their accounts.
Ex: Loan Give to Friends, Relatives and Company etc.
*How to create Group in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Group
➢ Fill all option in given Group screen

• Name: Type Name of Group
• Under: Select Under from 28 lists of groups
➢ Fill all above option Like this screenshot:
➢ After filling all details Press Ctrl+A to save
➢ Practice Exercise for Creation of Groups in Tally Prime for you, Follow Above Step & Create
Name Under
Bihar Debtors Sundry Debtors
Mutual Fund Current Assets
Bill Payable Current liabilities
Bangalore Creditors Sundry Creditors
*How to Alter (Changes) in Group in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Group > Select ‘Group’ for Alteration (Change)
Step.2: After Changes information in Group Press ‘Ctrl+A’ for Accept changes

Create/ Alter/Display of Ledgers in Tally Prime Class-3
*What are Ledgers (Account) in Tally Prime?

Ans:- A ledger is the actual account head to identify your transactions and is used in all
accounting vouchers. For example, purchase, sales, and others accounts heads are ledger
accounts. Without a ledger, you cannot record any transaction. Ledger can be created as
Single and Multiple in Tally Prime.
*How to Create Single Ledger (Account) in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Ledger
➢ Fill the following details in Ledger creation screen.

• Name: Specify the unique name of the ledger account. Ex: SBI Bank A/c
• Under: Under List of Groups, choose the group name that pertains to ledger account. Ex:
Bank Accounts
• Fills Other details in ledger screen for your ledger according to your necessity.
➢ After filling all details in ledger screen Press Ctrl+A to save.
➢ Practice Exercise for ledger Creation in Tally Prime for you, Follow Above Step & Create
Name Under

IDBI Bank A/c Bank Accounts

Rohan (Customer) A/c Sundry Debtors
Mohan (Supplier) A/c Sundry Creditors
IGST Duties & Taxes
*How to Create Multiple-Ledger (Account) in Tally Prime?

Step.1: GOT (Gateway of Tally) > Chart of Accounts > Ledger > Multi-Master (Alt+H) > Multi-
Create
➢ Multiple Ledger Screen Will Open After Follow Above Path, Type name of ledger & Select
Under groups for ledger etc As Following
➢ After Filling all Ledger name Press ‘Ctrl+A’ or Enter to save
*How to Alter/Display Ledger (Account) in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Ledger > Select Ledger for Changes/Display & After
Changes Press ‘Ctrl+A’ for Accept.
*How to Delete Ledger (Account) in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Ledger > Select Ledger for Delete & Press Enter >
Alt+D > Press Two times Enter
Create/Alter/Display Vouchers Type in Tally Prime Class-4
*What are Vouchers in Tally Prime?

Ans:- A voucher is a document that contains details of a financial transaction and is required
for recording the same into the books of accounts. For every transaction, you can use the

appropriate Tally voucher to enter the details into the ledgers and update the financial
position of the company. 24 are Pre-defined Vouchers in Tally.
*How to Create Voucher in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Voucher Type
➢ Fill all the following details on Voucher creation screen.

• Name: Specify the unique name of the Voucher. Ex: Bank Payments
• Select type of voucher: Under List of type of Voucher, choose the type of voucher name that
pertains to Voucher. Ex: Payments.
➢ fill details like following screenshot:
➢ After filling all details Press Ctrl+A to save.

➢ Practice Exercise for Voucher Creation in Tally Prime for you, Follow Above Step & Create
Name Select type of voucher

Cash Sale Sales
Credit Sale Sales
Credit Purchase Purchases
*How to Alter/Display Voucher in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Voucher type > Select Voucher for Changes/Display
& after Changes Press ‘Ctrl+A’ for Accept.
*How to Delete Voucher in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Voucher type > Select Voucher for Delete & Press
Enter > Alt+D > Press Two times Enter
Create/Alter/Display Inventory Masters in Tally Prime Class-5
*What is Units in Tally Prime?

Ans: - Stock Items are mainly purchased and sold on the basis of quantity. The quantity in
turn is measured by units. In such cases, it is necessary to create the Unit of Measure. The
Units of Measure can either be simple or compound. Examples of simple units are: nos.,
miters, kilograms, pieces etc.
Simple Units –Simple units are Nos, Pcs, and so on. Compound unit is a combination of two
simple units.
*How to Create Simple Unit in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Unit > Enter
➢ For creating simple units, fill the all details in simple units creation screen like,
• Type –By default Tally Prime will show the Simple unit for creating the unit of measure
select the simple Units by clicking on that field or by using SHIFT+TAB [cursor will go to the
previous field].
• Symbol – Define the Symbol of the unit, for example, Nos. This symbol is used in all displays
and printouts.
• Formal Name – Specify the Formal Name of the symbol, for example, Numbers. This formal
name is useful during the 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.
• Number of decimal places –In this field you can specify the Number decimal places for the
Units from 0 to 4. This field is useful for Units measured in fractions. For example, Kilogram
unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal
places required is 3

➢ Fill details like following screenshot:
➢ Press Enter or ‘Ctrl+A’ to Save
➢ Practice Exercise for Simple Units Creation in Tally Prime, for you
Type Symbol Formal Name Number of decimal Places

Simple ft Feets 1
Simple gms Grams 0
Simple cm Centimeter 0
Simple m Meter 2
*What is a Compound unit in Tally Prime?

Ans: - A Compound Unit is a relation between two Simple Units. Hence, before you create a
Compound Unit, ensure that you have already created two Simple units. For example, To
Create Compound unit – Doz (Dozen) of 12 Nos (Numbers), you have to create two simple
units, Doz (Dozen) and Nos (Numbers) and set the conversion factor as 12.
*How to Create Compound Unit in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Unit > Enter
• Type – Select Compound from the Types of Units and press Enter. The Conversion field will
be displayed for creating Compound unit. like this screenshot:
• First Unit – Select the First unit from the Units List. In the above example, “Dozen” will be
the First Unit.
• Conversion – Specify the Conversion Factor. In the above example, Conversion factor will be
“12”.

• Second Unit – Specify the Second Unit from the Units List. In the above example, “Numbers”
will be the Second Unit. This unit is also called Tail Unit.
➢ Press “Ctrl+A” accept the compound Screen.
➢ Practice Exercise for Compound Units Creation in Tally Prime, for you
Type First Unit Conversion Second Unit
Compound Kgs 1000 Gms
Compound m 100 cm
Compound ft 12 inch
*How to Alter/Display simple/Compound unit in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Unit > Select simple/Compound unit for
Changes/Display after Changes Press ‘Ctrl+A’ for Accept.
1. What is Stock Groups in Tally Prime?

Ans: - Grouping of Stock Item based on Some Common Features, like Brand name, product
type, quality etc.
Ex: Television, Smartphone
*How to Create Stock groups in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Stock Group > Enter
➢ Fill the following details on Stock Group creation screen.

• Name – Enter the Name of the Stock Group. Ex: Television
• Alias – Enter additional name apart from primary name (if required) in the field Alias. You
can create any number of additional names.

• Under – Specify whether it is a primary group or a sub-group of another group in the

field under, by selecting from the list. Ex: Primary
• Should quantities of item be added – Set to this “Yes” to quantity of Item to be added in
“Television” group.
➢ Fill all above details like following screenshot:
➢ Practice Exercise for Stock Group Creation in Tally Prime, for you
Name Under
Electronics Primary
Smartphone Electronics
Earphone Primary
Sound Box Primary
How to Alter/Display Stock groups in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Stock Group > Select Stock Group for
Changes/Display & After Changes Press ‘Ctrl+A’ for Accept.
2. What is Stock Category in Tally Prime?

Ans: Stock Category offers a parallel classification of stock items. Like stock Groups,
classification is done based on similarity in behavior.
Ex: 25” TV, 28” TV
*How to Create Stock groups in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Stock Category > Enter
➢ Fill the following details on Stock Category creation screen.

• Name – Enter the Name of the Stock Category. Ex: 24” TV

• Alias – Enter additional name apart from primary name (if required) in the field Alias. You
can create any number of additional names.
• Under –Specify whether it is a primary group or a sub-group of another group in the
field under, by selecting from the list. Ex: Primary
➢ Practice Exercise for Stock Category Creation in Tally Prime, for you
Name Under
25” TV Primary
26” TV Primary
27” TV Primary
28” TV Primary
*How to Alter/Display Stock Category in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Stock Category > Select Stock Category for
Changes/Display after Changes Press ‘Ctrl+A’ for Accept.
3. What is Stock Items in Tally Prime?

Ans: - Stock items are goods that you manufacture or trade (sells and purchase). It is the
primary inventory entity. Stock Items in the Inventory transactions are similar to ledgers
being used in accounting transactions.
Ex: Sony 24” TV, Phillips 28” TV
*How to Create Stock item in Tally Prime?

Step.1: GOT (Gateway of Tally) > Create > Stock item > Enter
➢ Fill the following details on

Stock Item creation screen.
• Name – Enter the Name of the Stock Item. Ex: Sony 24” TV
• Alias – Enter additional name apart from primary name (if required) in the field Alias. I leave
it as empty.
• Under – Specify whether it is a primary group or a sub-group of another group in the
field under, by selecting from the list. Ex: Television
• Units – This field will show the Unit List. Here you can select the Unit of measure (UoM)
applicable for the stock item. By default, Not Applicable appears in this field. Ex: Pieces (Pcs).
➢ Fill all above details in Item creation screen like following screenshot:
➢ Practice Exercise for Stock Category Creation in Tally Prime, for you
Name Under Unit

Sony 25” TV Television Pcs
*How to create multiple Stock Items in Tally Prime?

Step.1: GOT (Gateway of Tally) > Charts of Accounts > Stock item > Alt+H (Multi-Master) >
Multi create
➢ After follow above step for Multiple Item creation, screen will appear like this screenshot to
multiple item creation:

➢ Fill all details like single Item creation screen
*How to Alter/Display Stock Item in Tally Prime?

Step.1: GOT (Gateway of Tally) > Alter > Stock Item > Select Stock Item for Changes/Display
after Changes Press ‘Ctrl+A’ for Accept.
How to Pass All Voucher Entry in Tally Prime Class-6
• How many Types of Pre-defined Voucher in Tally Prime?

Ans: - There are 24 Pre-defined vouchers in Tally Prime which is given following in table:
1. Contra 9. Rejections in 17. Stock Journal
2. Receipt 10. Rejections out 18. Physical Stock
3. Payment 11. Credit Note 19. Job Work in order
4. Purchase 12. Debit Note 20. Material in
5. Sales 13. Purchase order 21. Job Work out order
6. Journal 14. Receipt Note 22. Material out
7. Memorandum 15. Sale Order 23. Attendance
8. Reversing Journal 16. Delivery Note 24. Payroll
1. Contra Voucher (F4): - Contra Voucher entry is the internal movement of Cash or
fund which has no business effect. This means that cash is moving across two
accounts, i.e. Cash A/c & Bank A/c of Company.
Ex: 1. Cash Deposited into SBI Bank, ₹ 40000

Dr – SBI Bank A/c
Cr – Cash A/c
2. Cash Withdrawn into SBI Bank, ₹ 20000

Dr – Cash A/c

Cr – SBI Bank A/c
3. Fund Transfer from SBI to PNB ₹ 5000

Dr – PNB A/c
Cr – SBI Bank A/c
• How to Pass Contra Voucher Entry (Double Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F4” Short cut Key for Contra Voucher > Ctrl+H (For Double
Entry)
➢ After Reaching the Above Step Screen will be Shown Like this following,
➢ Pass the Entry in the Form of Dr & Cr & Fill all details about Bank Like Amount, Cheque no:,
Inst Date , Narration of Entry
Example No: 1. Cash Withdrawn into SBI Bank, ₹ 20000
Cr – SBI Bank A/c
Dr – Cash A/c
➢ Pass Entry of Above Example in Contra voucher like this screenshot:

➢ Press Ctrl+A for Save this Screen
• How to Pass Contra Voucher Entry (Single Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F4” Short cut Key for Contra Voucher > Ctrl+H (For Single
Entry)
Note 1: In Single Entry Mode Dr & Cr not Show

Note 2: in Single Entry Mode Dr means Account & Cr means Particulars
➢ Pass the Entry in the Form of Account & Particulars & Fill all details about Bank Like Amount,
Cheque no:, Inst Date , Narration of Entry
Example No: 1. Cash Withdrawn into SBI Bank, ₹ 20000
Cr – SBI Bank A/c
Dr – Cash A/c
➢ Pass Entry of Above Example in Contra voucher

➢ Practice Exercise for Contra Voucher Entry in Tally Prime, for you
Date Particulars Dr-Amount Cr-Amount

01-04-2020 Dr-BOI Bank A/c ₹ 30000
Cr-Cash A/c ₹ 30000
02-04-2020 Dr-Cash A/c ₹ 10000
Cr-PNB Bank A/c ₹ 10000
03-04-2020 Dr-PNB Bank A/c ₹ 40000
Cr- SBI Bank A/c ₹ 40000
04-04-2020 Dr- SBI Bank A/c ₹ 50000
Cr-Cash A/c ₹ 50000
*How to Show/Edit contra Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Contra Register > Select Month &
Show/Edit Entry
➢ For Delete Entry Press ‘Alt+D’ on Selected Entry
2. Receipt Voucher (F6): - Whenever we received cash or Cheque from our customer
or any other sources, entry making in receipt voucher.
Ex: 1.cash received from Mohan Customer, ₹ 20000

Dr- Cash A/c
Cr- Mohan A/c
2. Cheque received of SBI Bank for Salary, ₹ 40000

Dr- SBI Bank A/c
Cr- Salary A/c
• How to Pass Receipt Voucher Entry (Double Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F6” Short cut Key for Receipt Voucher > Ctrl+H (For Double
Entry)

➢ Pass the Entry in the Form of Dr & Cr & Fill all details about Bank Like Amount, Inst No or
Cheque no (if Any):, Inst Date , Narration of Entry
Example No: 1. Cheque received of SBI Bank for Salary, ₹ 40000
Dr- SBI Bank A/c
Cr- Salary A/c
Narration – Being Cheque received for Salary of SBI
➢ Pass Entry of Above Example in Receipt voucher
➢ Press ‘Ctrl+A’ for Save this Screen
• How to Pass Receipt Voucher Entry (Single Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F6” Short cut Key for Receipt Voucher > Ctrl+H (For Single
Entry)

Note 2: In Single Entry Mode Dr means Account & Cr means Particulars

Inst no or Cheque no:, Inst Date , Narration of Entry
Example No: 1.Cheque received of SBI Bank for Salary, ₹ 40000

Account- SBI Bank A/c
Particulars- Salary A/c
Narration – Being Salary received in SBI Cheque no: 854444
➢ Pass Entry of Above Example in Receipt voucher
➢ Practice Exercise for Receipt Voucher Entry in Tally Prime, for you

01-04-2020 Dr-BOI Bank A/c ₹ 30000
Cr-Commission A/c ₹ 30000
02-04-2020 Dr-Cash A/c ₹ 10000
Cr-Rohan A/c ₹ 10000
03-04-2020 Dr-PNB Bank A/c ₹ 40000
Cr- Dinesh A/c ₹ 40000
04-04-2020 Dr- SBI Bank A/c ₹ 50000
Cr-Rent A/c ₹ 50000
*How to Show/Edit Receipt Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Receipt Register > Select Month &
Show/Edit Entry
3. Payment Voucher (F5): - Whenever we Paid cash or Cheque to our Supplier or any
other Parties, entry making in Payment voucher.
Ex: 1.cash Paid to Mohan Supplier, ₹ 20000

Cr- Cash A/c

Dr- Mohan A/c
2. SBI Bank Cheque Paid for Salary, ₹ 40000

Cr- SBI Bank A/c
Dr- Salary A/c
• How to Pass Payment Voucher Entry (Double Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F5” Short cut Key for Payment Voucher > Ctrl+H (For Double
Entry)
➢ Pass the Entry in the Form of Dr & Cr & Fill all details about Bank Like Amount, Inst No or
Cheque no (if Any):, Inst Date , Narration of Entry
Example No: 2. SBI Bank Cheque Paid for Salary, ₹ 40000
Cr- SBI Bank A/c
Dr- Salary A/c
Narration – Being Salary Paid By SBI Cheque No: 455555
➢ Pass Entry of Above Example in Payment voucher

*How to Pass Payment Voucher Entry (Single Entry Mode) In Tally Prime
Step: - GOT > Voucher > Press “F5” Short cut Key for Payment Voucher > Ctrl+H (For Single
Entry)

Note 2: In Single Entry Mode Cr means Account & Dr means Particulars
Inst no or Cheque no (if Any), Inst Date , Narration of Entry
Example No: 2. SBI Bank Cheque Paid for Salary, ₹ 40000

Account- SBI Bank A/c
Particulars- Salary A/c
Narration – Being Salary Paid By SBI Cheque No: 455555
➢ Pass Entry of Above Example in Payment voucher

➢ Practice Exercise for Payment Voucher Entry in Tally Prime, for you

01-04-2020 Cr-BOI Bank A/c ₹ 30000
Dr-Commission A/c ₹ 30000
02-04-2020 Cr-Cash A/c ₹ 10000
Dr-Rohan A/c ₹ 10000
03-04-2020 Cr-PNB Bank A/c ₹ 40000
Dr- Dinesh A/c ₹ 40000
04-04-2020 Cr- SBI Bank A/c ₹ 50000
Dr-Rent A/c ₹ 50000
*How to Show/Edit Payment Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Payment Register > Select Month &
Show/Edit Entry
4. Purchase Voucher (F9): - Whenever We Buy goods for trading that means for
selling in cash or Credit, Entry making in Purchase Voucher. When we buy for selling
with the aim of making profit termed as Purchase.
Ex: 1.Goods Purchased on Cash, ₹ 20000
Dr- Purchase A/c
Cr- Cash A/c
2. Purchased Goods from Sohan, ₹ 40000
Dr- Purchase A/c
Cr- Sohan A/c
3. Purchase Goods from Mahesh on Cash, ₹ 5000 & on credit, ₹ 10000
Dr- Purchase A/c
Cr- Mahesh A/c
Cr- Cash A/c
*Note: In Tally Prime there are three types of Voucher Mode for Entry in Purchase Voucher
*1. Item Invoice: - Item Invoice is the invoice in which stock item can be selected and also
item wise bills can be printed. This invoice type is specifically created for the traders &
manufacturers of goods.
*2. Accounting Invoice: - Accounting Invoice is the Invoice in which purchase ledger or other
Services ledger can be selected and no stock item during voucher entry. This type is useful
for entering service transactions as there will not be any stock item.
*3. As Voucher: - In this screen, Screen will show in the form of Dr & Cr format. By using this
mode we pass Purchase entry in the form of Dr & Cr and also select item during entry.

*How to Pass Purchase Voucher Entry (Item Invoice mode) In Tally Prime?
Step: - GOT > Voucher > Press “F9” Short cut Key for Purchase Voucher > Ctrl+H (For Item
Invoice Selection) > Enter
➢ Pass the Entry in the Item Invoice mode Screen & Fill all details Like
• Date – Type Date of Entry
• Supplier Invoice No – Type Bill or Invoice No of Supplier
• Party’s A/c Name- Name of Party (Supplier)
• Purchase Ledger – Select ‘Purchase A/c’
• Name of Item – Select ‘item name’ from list
• Location – Select your Godown
• Quantity – Type number of item to Purchase
• Rate – Type Price of one item
• Narration – Type Narration about entry
➢ *Example No: 1. Purchased Goods from Sohan Supplier with Invoice no- DKP/123, ₹
40000
• Date – 01/04/2020
• Supplier Invoice No – DKP/123
• Party’s A/c Name- Sohan A/c
• Purchase Ledger – Purchase A/c
• Name of Item – Sony TV
• Location - Sasaram
• Quantity – 4 Pcs.
• Rate – 10000
• Narration – Being Goods Purchased on credit
➢ Pass Entry of Above Example in Purchase Voucher as following Screenshot:

➢ Press Ctrl+A to save this voucher
➢ Practice Exercise for Purchase Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ * Example No: 2. Purchased Sony TV from Ritesh Supplier with Invoice no- DKP/456, ₹
20000
• Date – 02/04/2020
• Party’s A/c Name- Ritesh A/c
• Rate – 5000
• How to Pass Purchase Voucher Entry (Accounting Invoice mode) In Tally

Prime?
Step: - GOT > Voucher > Press “F9” Short cut Key for Purchase Voucher > Ctrl+H (For
Accounting Invoice Selection) > Enter

• Particulars – Select Purchase Ledger or Service Expanse ledger
➢ *Example No: 1. Purchased Telephone Service from Sohan Supplier with Invoice no-
DKP/321, ₹ 40000
• Date – 01/04/2020
• Particulars – Telephone Services
• Amount - 40000
• Narration – Being Service Purchased on credit
➢ Pass Entry of Above Example in Purchase Voucher as following Screen shot:
➢ Practice Exercise for Purchase Voucher (Accounting Invoice mode) Entry in Tally Prime, for
you
➢ *Example No: 2. Purchased Advertisement Service from Rejesh Supplier with Invoice no-
DKP/897, ₹ 30000
• Date – 02/04/2020
• Party’s A/c Name- Rajesh A/c
• Particulars – Advertisement Services
• Amount - 30000
• Narration – Being Service Purchased on credit

*How to Pass Purchase Voucher Entry (As Voucher mode) In Tally Prime?
Step: - GOT > Voucher > Press “F9” Short cut Key for Purchase Voucher > Ctrl+H (For As
Voucher Selection) > Enter
After Reaching the Above Step Screen will be Shown Like this following,
➢ Pass the Entry in the As Voucher mode Screen & Fill all details Like
• Cr/To - Select Name of Party (Supplier)
• Dr/By – Select Purchase Ledger
• Quantity – Type number of item to Purchase
40000
• Date – 01/04/2020
• Cr/To - Sohan A/c
• Dr/By – Purchase A/c
• Rate – 10000
➢ Pass Entry of Above Example in Purchase Voucher as following Screen shot:

➢ Practice Exercise for Purchase Voucher (As Voucher mode) Entry in Tally Prime, for you
30000
• Date – 02/04/2020
• Cr/To - Geeta A/c
• Dr/By – Purchase A/c
• Name of Item – Philips TV
• Rate – 10000
*How to Show/Edit Purchase Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Purchase Register > Select Month &
Show/Edit Entry
5. Sale Voucher (F8): - All types of sell of Goods or Services in Business which can
in cash or Credit, record in Sale voucher.
Ex: 1.Goods Sold on Cash, ₹ 20000
Cr- Sale A/c
Dr- Cash A/c
2. Sold Goods to Sohan, ₹ 40000
Cr- Sale A/c
Dr- Sohan A/c

3. Sold Goods to Mahesh on Cash, ₹ 5000 & on credit, ₹ 10000

Cr- Sale A/c
Dr- Mahesh A/c
Dr- Cash A/c
*Note: In Tally Prime there are three types of Voucher Mode for Entry in Sale Voucher
*2. Accounting Invoice: - Accounting Invoice is the Invoice in which purchase ledger or other
Services ledger can be selected and no stock item during voucher entry. This type is useful
for entering service transactions as there will not be any stock item.
mode we pass Purchase entry in the form of Dr & Cr and also select item during entry.
• How to Pass Sale Voucher Entry (Item Invoice mode) In Tally Prime?
Step: - GOT > Voucher > Press “F8” Short cut Key for Sale Voucher > Ctrl+H (For Item Invoice
Selection) > Enter
• Reference No – Type Bill or Invoice No for customer
• Party’s A/c Name- Name of Party (Customer)
• Sale Ledger – Select ‘Sale A/c’
• Quantity – Type number of item to Sale

➢ *Example No: 1. Sold Sony TV to Sohan Supplier with Invoice no- DKP/123, ₹ 40000
• Date – 01/04/2020
• Reference No – DKP/123
• Sale Ledger – Sale A/c
• Rate – 10000
• Narration – Being Goods Sold on credit
➢ Pass Entry of Above Example in Sale Voucher as following Screen shot:
➢ Practice Exercise for Sale Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ * Example No: 2. Sold Sony TV to Ritesh Supplier with Invoice no- DKP/456, ₹ 20000
• Date – 02/04/2020
• Rate – 5000
• How to Pass Sale Voucher Entry (Accounting Invoice mode) In Tally Prime?
Step: - GOT > Voucher > Press “F8” Short cut Key for Sale Voucher > Ctrl+H (For Accounting
Invoice Selection) > Enter

➢ Pass the Entry in the Accounting Invoice mode Screen & Fill all details Like
• Reference No – Type Bill or Invoice No for Customer
• Particulars – Select Sale Ledger or Service Expanse ledger
➢ *Example No: 1. Sold Telephone Service to Sohan Customer with Invoice no- DKP/321, ₹
40000
• Date – 01/04/2020
• Particulars – Telephone Services
• Amount - 40000
• Narration – Being Service Sold on credit
➢ Pass Entry of Above Example in Purchase Voucher as following Screenshot:

➢ Practice Exercise for Sale Voucher (Accounting Invoice mode) Entry in Tally Prime, for you
➢ *Example No: 2. Sold Advertisement Service to Rejesh Customer with Invoice no-
DKP/897, ₹ 30000
• Date – 02/04/2020
• Party’s A/c Name- Rajesh A/c
• Particulars – Advertisement Services
• Amount - 30000
• Narration – Being Service Sold on credit
• How to Pass Sale Voucher Entry (As Voucher mode) In Tally Prime?
Step: - GOT > Voucher > Press “F8” Short cut Key for Sale Voucher > Ctrl+H (For As Voucher
Selection) > Enter
• Reference No – Type Bill or Invoice No for Customer
• Dr/By - Select Name of Party (Customer)
• Cr/To – Select Sale Ledger
• Quantity – Type number of item to Sale
➢ *Example No: 1.Sold Sony TV to Sohan Customer with Invoice no- DKP/789, ₹ 50000
• Date – 01/04/2020
• Dr/By - Sohan A/c
• Cr/To – Sale A/c

• Rate – 10000
➢ Pass Entry of Above Example in Sale Voucher as following Screen shot:
➢ Practice Exercise for Sale Voucher (As Voucher mode) Entry in Tally Prime, for you
➢ *Example No: 1. Sold Philips TV to Geeta Customer with Invoice no- DKP/765, ₹ 30000
• Date – 02/04/2020
• Dr/By - Geeta A/c
• Cr/To – Sale A/c
• Rate – 10000
• How to Show/Edit Sale Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Sale Register > Select Month &
Show/Edit Entry

6. Journal Voucher (F7): - A fixed Assets purchase on credit and all type of
adjustment or Provision entry, making in journal voucher.
Ex: 1.Furniture purchase on credit from Mohan, ₹ 20000
Dr- Furniture A/c
Cr- Mohan A/c
2. Rent Pay in May month ₹ 40000
Dr- Rent A/c
Cr- Rent Payable A/c
3. Depreciation charge on Furniture ₹ 10000 for one year
Dr- Depreciation A/c
Cr- Furniture A/c
• How to Pass Journal Voucher Entry in Tally Prime
Step: - GOT > Voucher > Press “F7” Short cut Key for Journal Voucher
➢ After Reaching the Above Step Screen will be Shown Like this following
➢ Pass the Entry in the Form of Dr & Cr & Fill Narration of Entry
➢ Note: - If you use To/By instead of Cr/Dr then Press ‘F12’ & Disable
Use Cr/Dr instead of To/By during voucher entry - No
Example No: 1.Furniture purchase on credit from Sohan, ₹ 20000
Dr- Furniture A/c
Cr- Sohan A/c
Narration – Being Furniture purchased on credit from Sohan
➢ Pass Entry of Above Example in Journal voucher like in following Screenshot

➢ Practice Exercise for Journal Voucher Entry in Tally Prime, for you

01-04-2020 Dr-Land A/c ₹ 30000
Cr-Dinesh A/c ₹ 30000
02-04-2020 Dr-Depreciation A/c ₹ 10000
Cr-machinery A/c ₹ 10000
03-04-2020 Dr-Telephone Exp A/c ₹ 40000
Cr- Rohan A/c ₹ 40000
04-04-2020 D- SBI Salary A/c ₹ 50000
Cr-Salary Payable A/c ₹ 50000
➢ Note: Narration of all Above Entry filled accordingly your Understanding sentence.
• How to Show/Edit Journal Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Journal Register > Select Month &
Show/Edit Entry
7. Memorandum Voucher: - If there is no clarity of transactions while it happening

you can make entry in memorandum vouchers. We can edit it later when details are
available. In other words memorandum voucher used to record suspense payments,
receipt, sales, purchase etc.
You can view all transactions recorded in the Memorandum Register or in Day-book.
Later you can convert memo vouchers into regular vouchers.
Ex: 1.Paid to Mohan for Office Expenses, ₹ 20000
Dr- Mohan A/c
Cr- Cash A/c
2. Send 10Kgs Rice to Sohan for Approval ₹ 40000
Dr- Sohan A/c
Cr- Sale A/c
• How to Pass Memorandum Voucher Entry in Tally Prime
Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” >
Memorandum > Press Double “Enter” on Memorandum
➢ After Reaching the Above Step Screen will be Shown Like this following

➢ Pass the Entry in the Form of Dr & Cr & Fill Narration of Entry
Example No: 1.Paid to Mohan for Office Expenses, ₹ 20000
Dr- Mohan A/c
Cr- Cash A/c
Narration – Being Cash Paid for Office Expense
➢ Pass Entry of Above Example in Journal voucher like in following Screenshot
➢ Practice Exercise for Memorandum Voucher Entry in Tally Prime, for you

01-04-2020 Dr-Suresh/c ₹ 30000
Cr-SBI A/c ₹ 30000
02-04-2020 Dr-Rajesh A/c ₹ 10000
Cr-Sale A/c ₹ 10000
03-04-2020 Dr-Employee B A/c ₹ 4000
Cr- Cash A/c ₹ 4000

• How to Show/Edit Memorandum Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Exception Reports > Memorandum Register > Select
Month & Show/Edit Entry > Press “Ctrl+A” for Save
• How to convert Memorandum vouchers to regular vouchers.

➢ Go to Memorandum register or day book; let’s convert the first memo voucher of Office
Expense.
• Step: GOT > Display More Reports > Exception Reports > Memorandum Register > Select
Month & Show
➢ Office boy Sohan came back in Office; the total bill amount is ₹15000
➢ Select the memorandum voucher in which you entered suspense amount.
➢ Press enter, memorandum voucher will open. Normally when we paid on cash, we enter it in
payment voucher. Click on Payment (F5) button provided at memorandum alteration screen.
➢ The voucher will converted as payment voucher with same entry. Just Like this in Following
Screenshot
➢ Press ‘Ctrl+A’ for Save
8. Reversing Journal Voucher: - Reversing journal is defined as those vouchers

reversing automatically after a specified date. Reversing journal is created on a date
and the affect of the voucher will remains till that date. These are vouchers that will
not directly affect ledgers or financial report of the company; you can view the affect
of these entries only if you included the entry in the report
Ex: 1. Salary Payable in February to Satish ₹ 40000 on 31st January 2020
Salary – Expense – Dr

Salary Payable – Liabilities – Cr

2. Rent Payable in February ₹ 50000 on 31st January 2020
Rent – Expense – Dr
Rent Payable – Liabilities – Cr
*How to Pass Reversing Journal Voucher Entry in Tally Prime

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Reversing
Journal > Press Double “Enter” on Reversing Journal
➢ After Reaching the Above Step Screen will be Shown Like this following Screenshot
➢ Pass the Entry in the Form of Dr & Cr & Fill

Applicable Up to – this is the date up to the expense is applicable in the Final report.
Narration– Type Narration of Entry if Any
Example No: 1. Salary Payable in February to Satish ₹ 40000 on 31st January 2020
Dr- Salary A/c
Cr- Salary Payable A/c
Applicable Upto – 31/01/2021
Narration – Being Salary pay in Next Month
➢ Pass Entry of above Example in Reversing Journal voucher like in following
Screenshot

➢ Press ‘Ctrl+A’ for Save screen
➢ Practice Exercise for Reversing Journal Voucher Entry in Tally Prime, for you

31-01-2021 Dr-Rent A/c ₹ 30000
Cr-Rent Payable A/c ₹ 30000
31-01-2021 Dr-Telephone Bill A/c ₹ 10000
Cr- Telephone Bill Payable A/c ₹ 10000
31-01-2021 Dr-Depreciation A/c ₹ 4000
Cr- Furniture A/c ₹ 4000
• How to Show/Edit Reversing Journal Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Exception Reports > Reversing Journal Register > Select
Scenario: - To include the expense in the Report entered through reversing voucher, you
should create a scenario.
• How to Create Scenario in Tally Prime
Step: - GOT > Create > Click on “Show More” > Scenario

➢ Fill All Details Like

• Name: - Type Name of Scenario, I taking “Provision”
• Include Actual: - Yes
• Include: Select Reversing Journal
• Exclude: End of List
➢ Just Like in the Following Screenshot
➢ Press ‘Ctrl+A’ for Save

• View desired report after considering reversing journal entry in Profit
& Loss A/c
Now let’s see the report after considering the expense entered through reversing
journal voucher.
Step: - GOT > Profit & Loss A/c > Press ‘Alt+C’
➢ Fill all details in New Column Screen Like

From (Blank of beginning) –Fill the beginning date of profit & loss account. Like
‘01/04/2020’
To (blank of End) – here you should select, the Applicable Up to date in the Reversing
journal you entered. Like ‘31/01/2021’
Method of Stock Valuation – Select ‘Default’
Type of Value to Show – Select your Scenario Name created by you for Reversing, like
‘Provision’
Show variance – No
➢ After Filling All details in Above option Screen will Show like this following Screenshot

➢ Press Enter for show Profit & Loss A/c as you Desired
9. Rejection in Voucher (Ctrl+F6): - This Voucher is used to record goods received

back from customer after rejection due to any type of reason.
Ex: 1. 5 Sony TV item rejected & return by Customer Sohan in Our Stock
Sale return – Loss– Dr
Sohan A/c – Giver – Cr
*How to Pass Rejection in Voucher Entry in Tally Prime

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Rejection
in > Press Double “Enter” on Rejection in

➢ Fill all Details like

Ledger Account – Select customer who rejected item, I taking “Sohan A/c”
Name of Item - Select item which is rejected, I taking “Sony TV”
Quantity – Type number item rejected, I taking “5”
Rate – Type Price of item which is at time of Sale, “5000”
Narration – type narration of rejection
➢ After Filling All details in Above option Screen will Show like this following Screenshot:
➢ Practice Exercise for Rejection in Voucher Entry in Tally Prime, for you
1. HP Laptop item rejected & return by Customer Mohan in Our Stock

Ledger Account –Mohan A/c
Name of Item – HP Laptop
Quantity – 10
Rate – 40000
Narration – Being Goods return by Customer
2. Oppo Smartphone item rejected & return by Customer Suresh in Our Stock
Ledger Account –Suresh A/c
Name of Item – Oppo Smartphone
Quantity – 5
Rate – 15000
Narration – Being Goods return by Customer
• How to Show/Edit Rejection in Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Rejection in Register > Select Month
& Show/Edit Entry > Press “Ctrl+A” for Save

10. Rejection out Voucher (Ctrl+F5): - This Voucher is used to record goods that are
rejected and returned to our supplier, due to any type of reason.
Ex: 1. 5 Sony TV item rejected & returned to our supplier Mohan.
Purchase return – Income– Cr
Mohan A/c – Receiver – Dr
• How to Pass Rejection out Voucher Entry in Tally Prime

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Rejection
out > Press Double “Enter” on Rejection out
➢ Fill all Details like

Ledger Account – Select Supplier whom rejected item, I taking “Mohan A/c”
Name of Item - Select item which is rejected, I taking “Sony TV”
Quantity – Type number item rejected, I taking “5”
Rate – Type Price of item which is at time of Sale, “4000”
Narration – type narration of rejection, ‘Being Goods return to Supplier’
➢ After Filling All details in Above option Screen will Show like this following Screenshot

➢ Practice Exercise for Rejection out Voucher Entry in Tally Prime, for you
3. HP Laptop item rejected & return to Supplier Rohan

Ledger Account –Rohan A/c
Name of Item – HP Laptop
Quantity – 10
Rate – 40000
Narration – Being Goods return to Supplier Rohan
4. Oppo Smartphone item rejected & return to Supplier Suresh

Ledger Account –Suresh A/c
Name of Item – Oppo Smartphone
Quantity – 5
Rate – 15000
Narration – Being Goods return to Supplier Suresh
• How to Show/Edit Rejection out Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Rejection out Register > Select
11. Credit Note Voucher (Alt+F6): - Credit note is an accounting document Issued by the
seller to the buyer (Customer) informing that his account has been credited due to sales
return made by him. Credit Note Voucher also used for paid interest to Party (Supplier).
Other cases when credit note issued.
• Expense paid by parties on our behalf.
• Price difference in sales invoice.
• Discount given to parties after generating Invoice
Ex: 1. 5 Sony TV item rejected & return by Customer Sohan in Our Stock
Sale return – Loss– Dr
Sohan A/c – Giver – Cr
*Note: In Tally Prime there are three types of Voucher Mode for Entry in Debit Note
Voucher

*2. Accounting Invoice: - Accounting Invoice is the Invoice in which Sale return ledger or
other Services ledger can be selected and no stock item during voucher entry. This type is
useful for entering Expense Entry & service transactions as there will not be any stock item.
mode we pass Sale return entry in the form of Dr & Cr and also select item during entry.
• How to Pass Credit Note Voucher Entry (Item Invoice mode) in Tally Prime
Step: - GOT > Voucher > Press “Alt+F6” Short cut Key for Credit Note Voucher > Ctrl+H (For
Item Invoice Selection) > Enter
• Ledger Account – Select ‘Sale return A/c (under Sale Account)’
• Name of Item – Select ‘item name’ The commodity retuned by customer
• Location – Select your Godown for return
• Quantity – Type number of item by return
• Rate – Auto filled
• Provide GST details – ‘Yes’ you can enter additional details about the sales return as shown
below.
Reason for issuing Note – Select ‘Sale return’
Buyer’s Debit Note No – Type Buyer’s Debit note no
Date – fill date of Debit note
• Narration – Type Narration of entry
➢ Press ‘Ctrl+I’ for More Details and Click on ‘Original Invoice No & Date’ And Fill
• Original Invoice No – Type The Invoice number of sale bill
• Date - Fill date of Sales invoice.

➢ *Example No:1. 5 Sony TV item rejected & return by Customer Rohan in Our Stock
• Date – 02/04/2020
• Party’s A/c Name- Rohan A/c
• Ledger Account– Sale return A/c
• Rate – 5000
below.
Buyer’s Debit Note No – Type Buyer’s Debit note no Ex: ‘JK/123’
Date – fill date of Debit note Ex ‘02/04/2020’
• Narration – Being sold Goods return by customer
• Original Invoice No – DKP/123
• Date - 01/04/2020
➢ Pass Entry of Above Example in Credit Note Voucher as following Screen shot:
➢ Practice Exercise for Credit Note Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ *Example No: 1. 4 Dell Laptop item rejected & return by Customer Suraj in Our Stock
• Date – 02/05/2020
• Party’s A/c Name- Suraj A/c
• Ledger Account– Sale return A/c
• Name of Item – Dell Laptop

• Rate – 30000
below.
Buyer’s Debit Note No – Type Buyer’s Debit note no Ex: ‘JK/678’
• Date - 01/05/2020
• How to Pass Credit Note Voucher Entry (Accounting Invoice mode) In Tally
Prime?
• Step: - GOT > Voucher > Press “Alt+F6” Short cut Key for Credit Note Voucher > Ctrl+H (For
• Particulars – Select Expense or Discount Ledger
• Amount – Fill Amount for Expense or Discount Ledger
➢ *Example No: 1. Sale Discount Given to Customer Sohan on Bill No: DKP/321, ₹ 4000

• Date – 02/04/2020
• Particulars – Select ‘Discount on Sale A/c (under Sale Account)’
• Amount - 4000
• Narration – Being Discount Given to Customer on Sale
• Original Invoice No – Type ‘DKP/321’
• Date - 01/04/2020
➢ Press Ctrl+A to save
➢ Practice Exercise for Credit Note Voucher (Accounting Invoice mode) Entry in Tally Prime,
for you
➢ *Example No: 1. Sale Discount Given to Customer Rohan on Bill No: PKD/321, ₹ 5000
• Date – 02/04/2020
• Particulars – Select ‘Discount on Sale A/c (under Sale Account)’
• Amount - 5000
• Narration – Being Discount Given to Customer on Sale
• Original Invoice No – Type ‘PKD /321’
• Date - 01/04/2020
• How to Pass Sale Voucher Entry (As Voucher mode) In Tally Prime?
Step: - GOT > Voucher > Press “Alt+F6” Short cut Key for Sale Voucher > Ctrl+H (For As

• Cr/To - Select Name of Party (Customer)
• Dr/By – Select Sale Return or Expense Ledger
• Amount – Type Amount of Sale Return by Customer
Date - Fill date of Sales invoice
➢ *Example No: 1.Sold Goods Return by Sohan Customer with Invoice no- DKP/789, ₹ 5000
• Date – 02/04/2020
• Dr/By - Sale Return A/c
• Cr/To – Sohan A/c
• Amount – 5000
• Narration – Being Goods Return by Customer due to Damage
• Original Invoice No – Type ‘DKP /789’
• Date - 01/04/2020

➢ Practice Exercise for Credit Note Voucher (As Voucher mode) Entry in Tally Prime, for you
➢ *Example No: 2. Sold Goods Return by Geeta Customer with Invoice no- DKP/258, ₹ 8000
➢
• Date – 02/04/2020
• Dr/By - Sale Return
• Cr/To – Geeta A/c.
• Amount – 8000
• Narration – Being Goods Return by Customer due to Damage
• Date - 01/04/2020
• How to Show/Edit Credit Note Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Credit Note Register > Select Month &
Show/Edit Entry
12. Debit Note Voucher (Alt+F5): - Debit note is an accounting document Issued by the
Buyer to the Seller (Supplier) informing that his account has been Debited due
to Purchase return made by him. Debit Note Voucher also used for Received interest
From Party (Customer).
Other cases when Debit note issued.
• Expense Received by parties on his behalf.
• Price difference in Sale invoice.
• Debit Note Against Sale (for Correction in Invoice)
• Debit Note on Additional Charges on sale, Ex – Freight charge, Transportation charge

• Discount Received on Purchase By parties after generating Invoice
Ex: 1. 5 Sony TV item rejected & return to Supplier Sohan due to Damage
Purchase return –Income– Cr
Sohan A/c – Receiver –Dr
*Note: In Tally Prime there are three types of Voucher Mode for Entry in Debit Note
Voucher
*2. Accounting Invoice: - Accounting Invoice is the Invoice in which purchase return ledger
or other Services ledger can be selected and no stock item during voucher entry. This type is
useful for entering income Entry & service transactions as there will not be any stock item.
mode we pass Purchase return entry in the form of Dr & Cr and also select item during entry.
• How to Pass Debit Note Voucher Entry (Item Invoice mode) in Tally Prime
Step: - GOT > Voucher > Press “Alt+F5” Short cut Key for Debit Note Voucher > Ctrl+H (For
Item Invoice Selection) > Enter
• Ledger Account – Select ‘Purchase return A/c (under Purchase Account)’

• Name of Item – Select ‘item name’ The commodity retuned to Supplier

• Location – Select your Godown from return
• Quantity – Type number of item by return
• Rate – Auto filled
below.
Supplier’s Debit/Credit Note No – Type Buyer’s Debit note no
Date – fill date of Debit note
• Original Invoice No – Type The Invoice number of Purchase bill
• Date - Fill date of Purchase invoice.
➢ *Example No:1. 5 Sony TV item rejected & return to Supplier Rohan Due to Damage
• Date – 02/04/2020
• Ledger Account– Purchase return A/c
• Rate – 5000
below.
Supplier’s Debit/Credit Note No – Type Buyer’s Debit note no Ex: ‘JK/123’
• Narration – Being Purchase Goods return to Supplier
• Date - 01/04/2020
➢ Pass Entry of Above Example in Debit Note Voucher as following Screen shot:

➢ Practice Exercise for Credit Note Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ *Example No:1. 4 Dell Laptop item rejected & return to Supplier Suraj Due to Damage
• Date – 02/05/2020
• Party’s A/c Name- Suraj A/c
• Ledger Account– Purchase return A/c
• Name of Item – Dell Laptop
• Rate – 30000
below.
Supplier’s Debit/Credit Note No – Type Buyer’s Debit note no Ex: ‘JK/678’
• Date - 01/05/2020
• How to Pass Debit Note Voucher Entry (Accounting Invoice mode) In Tally
Prime?
• Step: - GOT > Voucher > Press “Alt+F5” Short cut Key for Debit Note Voucher > Ctrl+H (For

• Particulars – Select Expense or Discount Ledger
• Amount – Fill Amount for Expense or Discount Ledger
➢ *Example No: 1. Purchase Discount Received from our supplier Sohan for Bill No:
DKP/321, ₹ 3000
• Date – 02/04/2020
• Particulars – Select ‘Discount on Purchase A/c (under Purchase Account)’
• Amount - 3000
• Narration – Being Discount received from Supplier
• Original Invoice No – Type ‘DKP/321’
• Date - 01/04/2020
➢ Pass Entry of Above Example in Debit Note Voucher as following Screen shot:

➢ Press ‘Ctrl+A’ for Save this Screen.
➢ Practice Exercise for Debit Note Voucher (Accounting Invoice mode) Entry in Tally Prime,
for you
*Example No: 1. Purchase Discount received from our supplier Mahesh Ltd for Bill No:
LKJ/321, ₹ 7000
• Date – 02/04/2020
• Party’s A/c Name- Mahesh Ltd A/c
• Particulars – Select ‘Discount on Purchase A/c (under Purchase Account)’
• Amount - 7000
• Narration – Being Discount received from Supplier
• Original Invoice No – Type ‘LKJ/321’
• Date - 01/04/2020
• How to Pass Debit Note Voucher Entry (As Voucher mode) In Tally Prime?
Step: - GOT > Voucher > Press “Alt+F5” Short cut Key for Sale Voucher > Ctrl+H (For As

• Cr/To - Select Name of Party (Supplier)
• Dr/By – Select Sale Return or Expense Ledger
• Amount – Type Amount of Purchase Return to Supplier
• Original Invoice No – Type The Invoice number of original Purchase bill
Date - Fill date of original Purchase bill
➢ *Example No: 1.Purchase Goods Return to Supplier Sohan with Invoice no- DKP/789, ₹
5000
• Date – 02/04/2020
• Cr/To - Purchase Return A/c
• Dr/By – Sohan A/c
• Amount – 5000
• Narration – Being Goods Return to Supplier due to Damage
• Date - 01/04/2020
➢ Pass Entry of Above Example in Debit Note Voucher as following Screenshot:

➢ Practice Exercise for Debit Note Voucher (As Voucher mode) Entry in Tally Prime, for you
*Example No: 2. Purchase Goods Return to Supplier Geeta with Invoice no- DKP/258, ₹
8000
• Date – 02/04/2020
• Cr/To - Purchase Return A/c
• Dr/By – Geeta A/c
• Amount – 8000
• Narration – Being Goods Return to Supplier due to Damage
• Date - 01/04/2020
• How to Show/Edit Debit Note Voucher Entry in Tally Prime?

Step: GOT > Display More Reports > Account Books > Debit Note Register > Select Month &
Show/Edit Entry
13. Purchase Order Voucher (Ctrl+F9): - Purchase order is a document/Paper issued

by the buyer to the seller informing or placing his order. It is popularly abbreviated

as PO. Normally a PO contains the too much information to communicate with seller
for better order processing. It is a Non-Inventory & Non-Accounting voucher.
Note: It is first step of buy anything
Note: Purchase order affects neither Stock nor Accounts
Ex: 2. Make Purchase Order for Goods from Sohan, ₹ 40000

Dr- Purchase A/c
Cr- Sohan A/c
• How to Pass Purchase order Voucher Entry (Item Invoice mode) In Tally
Prime?
Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Purchase
order > Press Double “Enter” on Purchase order
➢ After Reaching the Above Step Screen will be Shown Like this following Screenshot,
• Date – Type Date of order
• Order No – Type Order Number for Tracking
• Name of Item – Select ‘item name’ from list for Order
• Due on – Type Date Up to want Receipt Goods in our Godown
• Location – Select your Godown for item store
• Quantity – Type number of item to Purchase order
➢ *Example No: 1. Make Purchase Order for Sony TV from Sohan Supplier with Order no-
DKP/123, ₹ 50000
• Date – 01/04/2020

• Order No – DKP/123
• Due on – 01/05/2020
• Quantity –5 Pcs.
• Rate – 10000
• Narration – Being make Order for Purchasing item
➢ Pass Entry of Above Example in Purchase order Voucher as following Screen shot:
➢ Practice Exercise for Purchase Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ * Example No: 2. Make Purchase Order for Philips TV from Ritesh Supplier with Order no-
DKP/456, ₹ 80000
• Date – 02/04/2020
• Due on – 02/05/2020
• Rate – 10000
• Narration – Being order made for Purchasing Item

• How to Show/Edit Purchase Order Voucher Book in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Purchase Order Book > Select Month
& Show/Edit Entry
14. Receipt Note Voucher (Alt+F9): - Receipt Note is an Inventory voucher which is used
for ensures accurate matching of goods received against Purchase order. It is also known as
Goods receipt Note (GRN). GRN Goods receipt note is a next stage Document of purchase
order in the purchase management system. Receiving of goods from our Supplier then
making entry in receipt note voucher.
• Steps to prepare GRN Goods receipt note.

1. Receive the document of supply for example Invoice/ Delivery note etc.
2. Unload the Material to the Godown.
3. Verify the No packages and Quantity of item received is accurate with the Document.
4. Check the physical condition of goods.
5. Match The Material received with the purchase order issued.
6. Inform the supplier for any discrepancy found.
7. Match the price is accurate as per purchase order as already agreed.
8. Prepare a GRN and copies have been issued to various departments, like purchase, accounts,
store, Transporter, Supplier.
Note: It is second step of buy anything

Note: Receipt note entry will not reflect in Ledger/party balance, the entry of GRN will only
affect your stock.
Ex: 2. Goods received from Sohan against purchase order, ₹ 40000

Dr- Purchase A/c
Cr- Sohan A/c
• How to Pass Receipt Note Voucher Entry (Item Invoice mode) In Tally Prime?
• Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Receipt
Note > Press Double “Enter” on Receipt Note

• Date – Type Date of Receipt goods
• Reference no – If You make Purchase order already then leave Empty Otherwise type
Delivery Note Number
• Name of Item – Select ‘item name’ from list which is received
• Order No – Select your Purchase Order Number from list for All the details from the
purchase order is imported into GRN voucher
• Location – Auto fill
• Quantity – Auto fill
• Rate – Auto fill
Note: If you don’t have any Purchase Order then Manually Type all Details in GRN.like :
Location, Quantity, rate etc.
➢ *Example No: 1. Sony TV received against Purchase Order no - DKP/123 from Sohan
Supplier, ₹ 50000
• Date – 01/05/2020
• Location – ‘Sasaram’
• Quantity – Auto fill ‘5 Pcs.’

• Rate – Auto fill ‘10000’

• Narration – Being Goods received against Purchase order no DKP/123.
➢ Pass Entry of Above Example in Receipt Note Voucher as following Screen shot:
➢ Practice Exercise for Receipt Note Voucher (Item Invoice mode) Entry in Tally Prime,
For you
➢ *Example No: 1. Philips TV received against Purchase Order no - DKP/869 from Geeta
Supplier, ₹ 60000
• Date – 02/05/2020
• Party’s A/c Name- Geeta A/c
• Location – ‘Sasaram’
• Narration – Being Goods received against Purchase order no DKP/869.
• How to Show/Edit Receipt Note Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Receipt Note Register > Select Month
& Show/Edit Entry

15. Sale Order Voucher (Ctrl+F8): - A sales order is a document generated by the seller
specifying the details about the product or services ordered by the customer. Along
with the product and service details, sales order consists of price, quantity, terms,
and conditions etc. It is also known as SO. It is a Non-Accounting & Non-Inventory
Voucher.
❖ Sales order process and procedure

The step-by-step sales order process is explained below:
• The buyer sends a request for a quote from a vendor.
• After receiving the request, the vendor sends back the quote.
• The customer considers the quote reasonable and sends a purchase order.
• The vendor receives the Purchase order (PO) and generates a sales order using the details of
PO.
• The vendor sends the sales order to the customer to confirm the terms of the sale.
• The vendor assembles and prepares for delivery of goods and services requested.
• The vendor delivers those goods or services as per the order.
• Using the details of the sales order, the vendor generates the invoice and sends it to the
customer.
• The customer pays the amount specified on the invoice within the allotted time frame
Note: It is first step of Sale anything

Note: Sale order affects neither Stock nor Accounts
Ex: 2. Make Sale order against Purchase Order of Customer Sohan for Goods, ₹ 40000
Dr- Sohan A/c
Cr- Sale A/c
• How to Pass Sale order Voucher Entry (Item Invoice mode) In Tally Prime?
Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Sale order
> Press Double “Enter” on Sale order

• Date – Type Date of order
• Order No – Type Order Number for Tracking
➢ Order Details:
• Mode /Terms of Payment – Fill Any Mode of Payment type
• Other Reference – Write any reference for Contact
• Terms of Delivery – Write Your Delivery type
➢ Dispatch Details:
• Dispatch through – Type Parcel Name or Lorry No
• Destination – Type destination name for Supply
• Currier name/Agent – Type name of Agent to supplied Goods
• Bill of landing no/LR-RR No – Type Bill of Landing No
• Date – Type Date for Delivery
• Motor Vehicle No – Type Number of Vehicle
• Purchase Ledger – Select ‘Sale’ A/c’

• Name of Item – Select ‘item name’ from list for Supply
• Due on – Type Date Up to want Supply Goods to Customer
• Location – Select your Godown for Supply
• Quantity – Type number of item to Sale order
➢ *Example No: 1. Make Sale Order Against Purchase Order of Sony TV for Customer Sohan
with Order no- DPK/123, ₹ 50000
• Date – 01/05/2020
• Order No – DPK/123
➢ Order Details:
• Mode /Terms of Payment – 10 days by RTGS
• Other Reference – Call By Suraj

• Terms of Delivery – Door Delivery
• Dispatch through – Akash Ganga Currier
• Destination – Delhi
• Currier name/Agent – Suraj Kumar
• Bill of landing no/LR-RR No – 558525445554
• Date –02/05/2020
• Motor Vehicle No – BR23567
You can view all those details in this Screenshot
• Purchase Ledger – Sale A/c

• Due on – 02/05/2020
• Rate – 10000
• Narration – Being Prepare Sale order for Selling Goods
➢ Pass Entry of Above Example in Sale order Voucher as following Screen shot:
➢ Practice Exercise for Sale Voucher (Item Invoice mode) Entry in Tally Prime, for you
➢ *Example No: 1. Make Sale Order Against Purchase Order of Dell Laptop for Customer
Geeta with Order no- PKD/123, ₹ 60000

• Date – 01/05/2020
• Order No – PKD/123
➢ Order Details:
• Mode /Terms of Payment – 15 days by NEFT
• Other Reference – Call By Rajesh
• Terms of Delivery – Pick up from NH
• Dispatch through – Akash Ganga Currier
• Destination – Uttar Pradesh
• Currier name/Agent – Rajesh Kumar
• Bill of landing no/LR-RR No – 558525445896
• Date –02/05/2020
• Motor Vehicle No – BR23569
• Purchase Ledger – Sale A/c

• Due on – 02/05/2020
• Rate – 10000
• Narration – Being Prepare Sale order for Selling Goods
• How to Show/Edit Sale Order Voucher Book in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Sale Order Book > Select Month &
Show/Edit Entry
16. Delivery Note Voucher (Alt+F8): - Delivery Note is an Inventory voucher which is used
for ensures accurate matching of goods received against Purchase order. It is also known as
Delivery Challan. Delivery note is a next stage Document of Sale order in the Sales
management system. Delivering of goods from our Godown to Customer Godown then
making entry in Delivery note voucher.
When we send goods to the customer without generating bills. In such case the
goods should accompany a delivery Challan for the purpose of transportation.
Important things to know before preparing a delivery Challan

1. It must be serially numbered and number does not exceed 16 characters. This can be in a
single series or in multiple series.
2. It must be prepared in triplicate , Marked ‘ORIGINAL’ for consignee ,’DUPLICATE’ for
transporter and ‘TRIPLICATE’ for Consigner.
3. If the value of goods is greater than 50000, the GST E-Way bill must be issued along with
Delivery Challan as said in Rule 55(4).
Note: It is second step of Sale anything

Note: Delivery note entry will not reflect in Ledger/party balance, the entry of Delivery Note
will only affect your stock.
Ex: 2. Goods Delivered to Customer Sohan against Sale Order, ₹ 40000

Dr- Sohan A/c
Cr- Sale A/c
• How to Pass Delivery Note (DN) Voucher Entry (Item Invoice mode) In Tally
Prime?
Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Delivery
Note > Press Double “Enter” on Delivery Note
• Date – Type Date of Delivered goods
• Reference no – You can input the Sale order No or any other number as a reference. This will
work as your tracking number.
• Order No(s) – Select your ‘Sale Order’ from list – After Selection All Details Automatic Fill
• Sale Ledger – Select ‘Sale A/c’
• Name of Item – Auto fill
• Location – Auto fill

Note: If you don’t have any Sale Order then Manually Type all Details in Delivery Challan.
Like: order No, Location, Quantity, rate etc.
➢ *Example No: 1. Sony TV Delivered against Sale Order no - DPK/123 to Sohan Customer, ₹
50000
• Date – 01/05/2020
• Reference no – DPK/123
• Order No(s) – DPK/123
• Name of Item – Auto fill ‘Sony TV’
• Location – Auto fill ‘Sasaram’
• Narration – Being Goods Delivered against Sale order no DPK/123.
➢ Pass Entry of Above Example in Delivery Note Voucher as following Screen shot:
➢ Practice Exercise for Delivery Note Voucher (Item Invoice mode) Entry in Tally Prime, For
you
➢ *Example No: 1. Philips TV Delivered against Sale Order no - DKP/869 to Geeta Supplier, ₹
60000
• Date – 02/05/2020
• Reference No - DKP/869

• Name of Item Auto fill ‘Philips TV’
• Location – Auto fill ‘Sasaram’
• Narration – Being Goods Delivered against Sale order no DKP/869.
• How to Show/Edit Delivered Note Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Delivered Note Register > Select
Month & Show/Edit Entry
17. Stock Journal Voucher (Alt+F7): - Stock Journal voucher used for transfer of stock from
Godown to anther Godown. It is also use for Manufacturing Process.
❖ The stock Journal adjustment may be due to the following reasons:

• Inter-Godown Transfer: This is useful to transfer the goods from one location to another. The
quantity of stock remains the same, but the location changes.
• Additional Cost/Expenses involved in the Transfer of goods: You can also account the
additional cost incurred in connection of transfer of materials from one location to another.
• Accounting for Wastage of stock or shortage of stock: There may be a shortage or wastage of
stock items, the quantity may have got changes. In such cases, you have to enter a stock
journal to account for the increase or decrease in the Stock Item.
• How to Pass Stock Journal Voucher Entry In Tally Prime?

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Stock Journal > Enter
Second Way - Step: - GOT > Voucher > Press “Alt+F7” shortcut of Stock Journal

➢ Pass the Entry in the this screen & Fill all details Like
• Date – Type Date of Transfer of Stock
• Reference no – Type any Number as reference
➢ Source (Consumption) – Fill Details about Source Godown for Transfer of Stock like,
• Name of Item – Select ‘Stock Item’ Name from List Which you transferred
• Location – Select From Transfer ‘Godown’ Name from list
• Quantity – Type Number of stock item to Transfer
• Rate – Type rate of one item
➢ Destination (Production) – Fill Details about Destination Godown for Transfer of Stock like,
• Name of Item – Select ‘Stock Item’ Name from List Which you transferred
• Location – Select To Transfer ‘Godown’ Name from list
• Quantity – Type Number of stock item to Transfer as same as Source column
• Rate – Type rate of one item as same as Source column
➢ *Example No: 1. 50 Sony TV Transferred from Main Location to Sasaram Location

• Date – 01/05/2020
• Reference no – 123
➢ Source (Consumption)
• Location – Main Location
• Quantity –50 Pcs
• Rate – ₹10000
➢ Destination (Production)
• Location – Sasaram Location


• Rate –₹10000
• Narration –Being Stock Transferred from main location to Sasaram
➢ Pass Entry of Above Example in Stock Journal Voucher as following Screen shot:
➢ Practice Exercise for Stock Journal Voucher Entry in Tally Prime ,for You
➢ *Example No: 1. 50 Philips TV Transferred from Main Location to Patna Location

• Date – 01/05/2020
• Reference no – 456
➢ Source (Consumption)
• Rate – ₹9000
➢ Destination (Production)
• Location – Patna Location
• Rate –₹9000
• Narration –Being Stock Transferred from main location to Patna Location
• How to Show/Edit Stock Journal Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Stock Transfer Journal Register >
Select Month & Show/Edit Entry

18. Physical Stock Voucher (Ctrl+F7): - Physical Stock Voucher is used for recording the
actual stock which is verified or counted. It could happen that the Book Stocks and the
Physical Stock do not match. It is not unusual that the company finds a discrepancy
between actual stock and computer stock figure.
Physical vouchers will be useful for recording purposes only if you have configured
inventory vouchers to ignore physical stock differences. If you have configured the vouchers
so that physical stock difference is not ignored, then all transactions subsequent to the
physical stock voucher will use the balance as mentioned in that voucher.
• How to Pass Physical Stock Voucher Entry in Tally Prime?

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Physical Stock > Enter
Second Way - Step: - GOT > Voucher > Press “Ctrl+F7” shortcut of ‘Physical Stock’
➢ For Verify the Physical stock, Fill All Details like,

• Date – Fill Date of Verify
• Name of Item – Select ‘Item name’ from List to Verify
• Location – Select ‘Location name’ from list for where you want to verified
• Quantity – Type Your real Stock item ‘Number’ available in Your Godown
• Narration – Type Narration about Entry
➢ *Example No: 1. In Our Sasaram Godown 50 Sony TV Available in 1 May

• Date – 01/05/2020
• Quantity – 50

• Narration - Being Stock are Verified in 1 May for Sony TV in Sasaram Location
➢ Entry of Above Example in Physical Stock Voucher as following Screen shot:
➢ Practice Exercise for Physical Stock Voucher Entry in Tally Prime ,for You
➢ *Example No: 1. In Our Main Location 60 Philips TV Available in 1 May

• Date – 01/05/2020
• Quantity – 60
• Narration - Being Stock are Verified in 1 May for Philips TV in Main Location
• How to Show/Edit Physical Stock Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Inventory Books > Physical Stock Register > Select
19. Job Work in Order Voucher: - In case of Job Work In Order, Job Work receiver gets the
Job Order with the details of Finished Goods to be manufactured, expected Quantity of
Finished Goods, Raw material to be supplied by the Principal Manufacturer (job work giver),
Date of Delivery of Raw Materials (if delivered in installments) etc. In Tally Prime users can
record Job Work In Orders using Job Work In Order voucher.
Ex: Mr. Sohan gives me Order for Job to Manufacture a 10 numbers Personal Computer on
01/06/2020 & they send raw material for manufacturing of Personal computer.

• How to Pass Job Work in Order Voucher Entry in Tally Prime?

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Job work in
order > Press Double “Enter” on Job work in order
➢ For Pass Job Work in Order Entry Fill all Details Like,
• Date – Enter Job Work Receiving date
• Party A/c Name – Select Job Giver ledger Name
After Selection of Party fill only details of Process Instruction like,
• Duration of Process – In this field enter the duration of the manufacture of finished goods.
I.e. within how many days/months etc. the process to be completed and goods to be
delivered.
• Nature of Processing – Write all Step for Production of Expected Finish Goods from
Manufacturing to Finished Goods
• Order no – Type Job Work order number as your choice for Tracking Job
• Name of Item – Select that Stock Item which you Manufactured as Finished goods
After name of Item Selection fill details like,
• Tracking Components – If the Job Worker wants to track the raw materials used in the
manufacture of finished goods, It must be as ‘Yes’.
• Due on – In this field specify the Date on which the delivery of Finished Goods is done.
• Location – In this field select the Godown where the finished goods will be stored after
manufacture of finished goods
• Quantity – Type number of Stock item of finished goods to be delivered to the Job Giver.
• Fill Components using – Select ‘Not Applicable’ if you have already created Bill of Material
then select your Bill of Material name here.
After Selection Not Applicable fill Details like,
• Name of Item – Select the Name of Stock Item which is used as Raw material of finishing
goods.
• Track – In this field select ‘Pending to Receive’ from list for receiving raw material
• Due on – Type date on which the Raw materials will be received from Job Giver
• Location – Select that Godown where the Components/ Raw materials will be stored for
Manufacturing.
• Quantity (Actual) – Type number of Stock item of Raw materials to be received from Job
Giver.
• Rate – Type Price of one Stock item of Raw material.
After Filling all above details fill last One Detail like,
• Rate –Type Price/rate of One Finished Goods, which you manufactured.
➢ *Example No: 1. Mr. Sohan gives me Order for Job work to Manufacture a 10 numbers
Personal Computer on 01/06/2020 & they send raw material for manufacturing of Personal
computer on date 02/05/2020.
• Date – 01/05/2020
• Party A/c Name – Mr. Sohan A/c
• Duration of Process – 30 days
• Nature of Processing – Manufacturing, Packing & Finally Delivering of Finished Goods.
Fill details like following Screenshot
• Order no – DKP/789
• Name of Item – Personal Computer (PC)
• Tracking Components – Yes
• Due on – – 01/06/2020
• Quantity – 10 Pcs
• Fill Components using – Not Applicable
• Name of Item – CPU, HDD, keyboard, GPU, RAM, Scrap respectively.
• Track – Pending to Receive. Only in Scrap Select “Pending to Issue”
• Due on – 02/05/2020
• Quantity (Actual) – Type 10 Pcs for Every Raw Material Item
• Rate – Type 5000, 3000, 1000, 2000, and 3000 respectively given in Name of Item Column,
Except Scrap.

➢ Fill details like following Screenshot
➢ After Filling all above details fill last One Detail like,
• Rate –Type 14000
• Narration – Being Job Work received from Mr. Sohan
➢ Entry of Above Example in Job Work in Order Voucher as following Screen shot:
➢ Practice Exercise for Job Work in Order Voucher Entry in Tally Prime ,for You
*Example No: 2. Mr. Himanshu gives me Order for Job work to Manufacture a 5 numbers
Television on 01/06/2020 & they send raw material for manufacturing of Television on date
02/05/2020.
• Date – 01/05/2020
• Party A/c Name – Mr. Himanshu A/c


• Nature of Processing – Manufacturing, Packing & Finally Delivering of Finished Goods
• Order no – DKP/563
• Name of Item – Television
• Due on – – 01/06/2020
• Location – Delhi Location
• Name of Item – VDU, Picture Tube, Sound Card, IC Chips & Scrap respectively.
• Track – Pending to Receive. Only in Scrap Select “Pending to Issue”
• Due on – 02/05/2020
• Location – Delhi Location
• Rate – Type 1000, 900, 2000, and 3000 respectively given in Name of Item Column. Except
Scrap
• Narration – Being Job Work received from Mr. Himanshu
• How to Show/Edit Job Work in Order Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Job Work Reports > Job Work in Order Book > Select
20. Material in Voucher: - This voucher type can be used to record the material transfer in
(of Raw materials or Finished Goods) transactions. It is mainly used for Job Work.
Material In voucher can be used by the Job Worker as well as Principal Manufacturer.
Note 1: Principal Manufacturer can use this Voucher to record the receipt of finished
goods / Scrap/By-Product/Co-Product from the Job Worker.
Note 2: Job Worker can use this voucher to account the receipt of Raw material from
the Principal Manufacturer.
Ex: Mr. Sohan sends us raw material for manufacturing of Personal computer on Date
02/05/2020 Against Job work in Order no-DKP/123. Raw materials are CPU, GPU, Keyboard,
RAM, HDD of Each 10 Pcs etc.

• How to Pass Material in Voucher Entry in Tally Prime?

Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Material in
> Press Double “Enter” on Material in
➢ After Reaching the Above Step Screen will be Shown Like this following Screenshot:-
➢ For use the Material in voucher type to record Job work transactions. Enable the Job Work
Option in Material in Voucher type follow step
Step: GOT > Alter > Voucher Type > Material in > Press ‘Enter’
In Alteration material in Voucher Screen Enable Option:
Use for Job Work – ‘Yes’ then Press’ Ctrl+A’ for Save Screen
Like this Following Screenshot
➔ For Pass Entry in Material in Voucher Screen Fill all Details Like,
• Date – Enter date of Receiving Raw Material
• Reference – Type Any Number as Reference otherwise keep it as Empty.
• Party A/c Name – Select Raw Material Sender ledger Name from list of Ledger
➢ After Selection of Party Select Order No(s) from list of Order which you received as Job Work in
Order in above Job Work in Order voucher.
• Order no –Select Order number from list of Order.
• Source Location – Select Godown name from list of Godown on which you will receive Raw
materials from sender of Raw Materials.

Note: - The Source Godown in Material In is displayed as Consumption Godown when

the Principal Manufacturer receives the finished goods from the Job Worker using Godown
enabled with Our Stock with Third Party and configured to Allow Consumption in Material
In voucher type.

• Narration – Type your Narration about Entry.
➢ *Example No:1. Mr. Sohan sends us raw material for manufacturing of Personal computer
on Date 02/05/2020 Against Job work in Order no-DKP/123. Raw materials are CPU, GPU,
Keyboard, RAM, HDD of Each 10 Pcs etc.
• Date – 02/05/2020
• Reference – 563
• Party A/c Name –Mr. Sohan A/c
• Order no – Select ‘DKP/123’
• Source Location –Patna Location
• Narration – Being Raw Material Received from Job Giver Sohan
➢ Entry of Above Example in Material in Voucher as following Screen shot:
➢ Practice Exercise for Material in Voucher Entry in Tally Prime ,for You

➢ *Example No:1. Mr. Himanshu sends us raw material for manufacturing of 5 numbers
Television on Date 02/05/2020 Against Job work in Order no- DKP/563. Raw materials are
VDU, Picture Tube, Sound Card, IC Chips of Each 5 Pcs etc.
• Date – 02/05/2020
• Party A/c Name –Mr. Himanshu A/c
• Order no – Select ‘DKP/563’
• Source Location –Delhi Location
• Narration – Being Raw Material Received from Job Giver Himanshu
• How to Show/Edit Material in Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Job Work Reports > Material in Register > Select Month
& Show/Edit Entry
21. Job Work Out Order Voucher: - In case of Job Work Out Order, Job Work Sender
(Principal Manufacture) gives the Job Order with the details of Finished Goods to be
manufactured, expected Quantity of Finished Goods, Raw material to be supplied to the Job
worker, Date of Delivery of Raw Materials (if delivered in installments) etc. In Tally Prime
users can record Job Work Out Orders using Job Work Out Order voucher.
Ex: Our Company delegated the Job to Mr. Mohan for Manufacturing a 10 numbers
Personal Computer on 01/06/2020 & send raw material for manufacturing of Personal
computer to Mr. Mohan on date 02/05/2020.
• How to Pass Job Work Out Order Voucher Entry in Tally Prime?
Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Job work
Out order > Press Double “Enter” on Job work Out order
➢ After Reaching the Above Step Screen will be Shown Like this following Screenshot:

➔ For Pass Job Work in Order Entry Fill all Details Like,
• Date – Enter Job Work Sending date
• Party A/c Name – Select Job Receiver ledger Name
• Duration of Process – In this field enter the duration of the manufacture of finished goods.
I.e. within how many days/months etc. the process to be completed and goods to be
delivered.
• Nature of Processing – Write all Step for Production of Expected Finish Goods from
Manufacturing to Finished Goods
• Order no – Type Job Work order number as your choice for Tracking Job
• Name of Item – Select that Stock Item which you Manufactured as Finished goods
• Tracking Components – If the Job Worker wants to track the raw materials used in the
manufacture of finished goods, It must be as ‘Yes’.
• Due on – In this field specify the Date on which the delivery of Finished Goods is done.
• Location – In this field select the Godown where the finished goods will be stored after
manufacture of finished goods
• Quantity – Type number of Stock item of finished goods to be delivered by the Job Receiver.
• Fill Components using – Select ‘Not Applicable’ if you have already created Bill of Material
then select your Bill of Material name here.
• Name of Item – Select the Name of Stock Item which is used as Raw material of finishing
goods.
• Track – In this field select ‘Pending to Issue’ from list for Sending raw material
• Due on – Type date on which the Raw materials will be Delivered to Job Receiver.
• Location – Select that Godown where the Components/ Raw materials will be stored for
Manufacturing.
• Quantity (Actual) – Type number of Stock item of Raw materials to be Delivered to Job
Receiver.
• Rate – Type Price of one Stock item of Raw material.

• Rate –Type Price/rate of One Finished Goods, which you manufactured.
➢ *Example No: 1. Our Company delegated the Job to Mr. Mohan for Manufacturing a 10
numbers Personal Computer on 01/06/2020 & send raw material for manufacturing of
Personal computer to Mr. Mohan on date 02/05/2020.
• Date – 01/05/2020
• Party A/c Name – Mr. Mohan A/c
• Nature of Processing – Manufacturing, Packing & Finally Delivering of Finished Goods.
• Order no – PKD/123
• Name of Item – Personal Computer (PC)
• Due on – 01/06/2020
• Name of Item – CPU, HDD, keyboard, GPU, RAM, Scrap respectively.
• Track – Pending to Issue. Only in Scrap Select “Pending to Receive”
• Due on – 02/05/2020
• Rate – Type 5000, 3000, 1000, 2000, and 3000 respectively given in Name of Item Column,
Except Scrap.
➢ Fill details like following Screenshot

➢ After Filling all above details fill last One Detail like,
• Narration – Being Job Work delegated to Mr. Mohan
➢ Entry of Above Example in Job Work Out Order Voucher as following Screen shot:
➢ Practice Exercise for Job Work Out Order Voucher Entry in Tally Prime ,for You
*Example No: 2. Our Company delegated the Job to Mr. Suresh for Manufacturing a 5
numbers Television on 01/06/2020 & send raw material for manufacturing of Television to
Mr. Suresh on date 02/05/2020.
• Date – 01/05/2020
• Party A/c Name – Mr. Suresh A/c

• Nature of Processing – Manufacturing, Packing & Finally Delivering of Finished Goods
• Order no –PKD/563
• Name of Item – Television
• Due on – – 01/06/2020
• Location – Haryana Location
➢ After Selection Not Applicable fill Details like,
• Name of Item – VDU, Picture Tube, Sound Card, IC Chips & Scrap respectively.
• Track – Pending to Issue. Only in Scrap Select “Pending to Receive”
• Due on – 02/05/2020
• Rate – Type 1000, 900, 2000, and 3000 respectively given in Name of Item Column. Except
Scrap
• Narration – Being Job Work delegated to Mr. Suresh
• How to Show/Edit Job Work out Order Voucher entry in Tally Prime?
Step: GOT > Display More Reports > Job Work Reports > Job Work out Order Book > Select
22. Material Out Voucher: - This voucher type can be used to record the material transfer
Out (of Raw materials or Finished Goods) transactions. It is mainly used for Job Work.
Material Out voucher can be used by the Job Worker as well as Principal Manufacturer.
Note 1: Principal Manufacturer can use this Voucher to record the Sending of Raw material
to the Job Worker from the Job Worker.
Note 2: Job Worker can use this voucher to record the Sending of finished goods / Scrap/By-
Product/Co-Product to the Principal Manufacturer.
Ex: Job Worker Mr. Mohan receives our raw material for manufacturing of Personal
computer on Date 02/05/2020 Against Job work Out Order no-PKD/123. Raw materials are
CPU, GPU, Keyboard, RAM, HDD of Each 10 Pcs etc.
How to Pass Material Out Voucher Entry in Tally Prime?

• Step: - GOT > Voucher > Press “F10 (Other Voucher)” > Click on “Show Inactive” > Material in
> Press Double “Enter” on Material in
• After once time Enable this options only you on this voucher by single click on this in F10.
➢ After Reaching the Above Step Screen will be Shown Like this following Screenshot:
➢ For use the Material Out voucher type to record Job work transactions. Enable the Job Work
Option in Material in Voucher type follow step
Step: GOT > Alter > Voucher Type > Material Out > Press ‘Enter’
In Alteration material in Voucher Screen Enable Option:
Use for Job Work – ‘Yes’ then Press’ Ctrl+A’ for Save Screen
Like this Following Screenshot
➔ For Pass Entry in Material in Voucher Screen Fill all Details Like,
• Date – Enter date of Sending Raw Material
• Reference – Type Any Number as Reference otherwise keep it as Empty.
• Party A/c Name – Select Raw Material Receiver ledger Name from list of Ledger
➢ After Selection of Party Select Order No(s) from list of Order which you Send as Job Work out Order
in above Job Work Out Order voucher.
• Order no –Select Order number from list of Order.
• Destination Location – Select Godown name from list of Godown on which you will send
Raw materials to Receiver of Raw Materials.
Note 1: Select the appropriate Godown based on the type of Job Order.
Note 2: In case the Job Worker is issuing the finished goods to the Principal Company,
the Destination Godown should be set to Not Applicable.
Note 3: In case the Principal Company is issuing raw materials to the Job Worker, the
Godown enabled with Our Stock with Third Party in Godown masters should be selected.


• Narration – Type your Narration about Entry.
*Example No: 1 Job Worker Mr. Mohan receives our raw material for manufacturing of 10
Pcs Personal computers on Date 02/05/2020 Against Job work Out Order no-PKD/123. Raw
materials are CPU, GPU, Keyboard, RAM, HDD of Each 10 Pcs etc.
• Date – 02/05/2020
• Party A/c Name –Mr. Mohan A/c
• Order no – Select ‘PKD/123’
• Destination Location –Main Location
• Narration – Being Raw Material Sent to Job Worker Mohan
➢ Entry of Above Example in Material out Voucher as following Screen shot:
➢ Practice Exercise for Material Out Voucher Entry in Tally Prime, for You
➢ *Example No: 1. Job Worker Mr. Suresh receives our raw material for manufacturing of 5
numbers Television on Date 02/05/2020 Against Job work out Order no- PKD/563. Raw
materials are VDU, Picture Tube, Sound Card, IC Chips of Each 5 Pcs etc.
• Date – 02/05/2020
• Party A/c Name –Mr. Suresh A/c
• Order no – Select ‘PKD/563’
• Destination Location – Haryana Location


• Narration – Being Raw Material Sent to Job Worker Suresh
• How to Show/Edit Material Out Voucher entry in Tally Prime?

Step: GOT > Display More Reports > Job Work Reports > Material Out Register > Select
Note: - Attendance voucher & Payroll Voucher are used for Mainly in Payroll processing so,
we Discus these type of voucher in time of Payroll Processing in Forward topic.

Tally Prime Advance Accounting
Chapter-2: Advance Accounting in Tally Prime

Cost Category & Cost Center in Tally Prime Class-1........................................................................... 98
Multi-Currencies in Tally Prime Class-2 ............................................................................................ 102
Bank Reconciliation (BRS) in Tally Prime Class-3............................................................................ 106
Bill-wise details in Tally Prime Class-4 ............................................................................................. 109
Interest Calculation in Tally Prime Class-5 ........................................................................................ 116
Budget Management in Tally Prime Class-6 ...................................................................................... 124
Advance Accounting in Tally Prime
Cost Category & Cost Center in Tally Prime Class-1
Cost Category & Cost Cent: - Cost Category & Cost Center is an Advance Accounting feature of
Tally Prime. Cost categories are useful for organizations that require allocation of revenue (Ex:
Indirect & Direct Expense and Direct & Indirect Income) and non-revenue (Ex: Capital) items to
parallel sets of cost centers.
The cost centre in Tally Prime refers to an organizational unit to which costs or expenses can be
allocated during transactions while the cost category is used to accumulate costs or profits for
parallel sets of cost centers. For example, you can use cost centre to track expenses of each
employee or Expenses while cost category can be used to see the effectiveness of each Group of
Employee or a Project. Cost Category made by different type wise like region-wise or geography-
wise, Grade-wise, Department-wise etc.
Ex: “Sales Department” is a Cost Category. ‘Mahesh Gupta’, ‘Dinesh Sharma’ & ‘Rajesh Varma’ are
Cost Center of Sales Department (Cost Category).
*How to Activate Cost Category & Cost Center in Tally Prime?

Step: GOT > F11
Activate the Option Enable Cost Centers, Like that Following Screen shot
➢ Press ‘Ctrl+A’ for Save this Changes
Author-Deepak Prasad Page 98

*How to Create Single Cost Category in Tally Prime?

Step: GOT > Create > Click on ‘Show More’ > Cost Category > Create New > Enter
After reaching the Above step Screen will shown like this following screenshot:
➢ Fill Details like,

• Name – Type Name of Cost Category
• Alias – Type Another Name as Alias for Cost Category otherwise leave it Empty.
• Allocate Revenue Items – This option is Useful when allocate all type of indirect & direct
Expense and Direct & Indirect Income - related transactions to cost centers created under
this cost category.
• Allocate Non-Revenue Items – This option is Useful when allocate all type of Capital, Gift
Cards & Deposits related transactions to cost centers created under this cost category.
➢ Example: Fill Details like that

• Name – Sales Department
• Allocate Revenue Items – Yes
• Allocate Non-Revenue Items –No
➢ Entry of Above Example in Cost Category creation Screen as following Screen shot:
*How to Create Multiple Cost Categories in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Categories > Multi-Master (Alt+H) > Multi
Create > Enter
➢ After reaching the Above step Screen will shown like this following screenshot:
➢ Fill details as Above Single Cost Categories Screen like Name & Revenue Items.
*How to Alter Multiple Cost Categories in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Categories > Multi-Master (Alt+H) > Multi
Alter > Enter > make Changes in Category screen > Press ‘Ctrl+A’ for Save changes
➢ For Delete Cost Category Press ‘Alt+D’ on Selected one
Note: You will not be able to delete a Cost Category in multiple modes.
➢ Practice Exercise for Cost Categories Creation in Tally Prime, for You
Name Allocate Revenue Items Allocate Non-Revenue Items

Marketing Department Yes No
Finance Department Yes No
Accounts Department Yes No
*How to Create Single Cost Center in Tally Prime?

Step: GOT > Create > Click on ‘Show More’ > Cost Center > Create New > Enter

• Category – Select Category for Cost Center
• Name – Type Name of Cost Center
• Alias – Type Another Name as Alias for Cost Center otherwise leave it Empty.
• Under – It is by Default ‘Primary’ leave it as Primary
➢ Example: Fill Details like that

• Category – Sales Department
• Name – Rajesh Kumar
• Under –Primary
➢ Entry of Above Example in Cost Category creation Screen as following Screen shot:
*How to Create Multiple Cost Centers in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Centers > Multi-Master (Alt+H) > Multi
Create > Enter

➢ Fill details as Above Single Cost Categories Screen like Category, Name & Under.
Note: Under Cost Centre Select to ‘All Items’
*How to Alter Multiple Cost Centers in Tally Prime?

Step: GOT > Click on ‘Chart of Accounts’ > Cost Centers > Multi-Master (Alt+H) > Multi Alter
> Enter > make Changes in Cost Center screen > Press ‘Ctrl+A’ for Save changes
➢ For Delete Cost Category Press ‘Alt+D’ on Selected one

Note: You will not be able to delete a Cost Centers in multiple modes
➢ Practice Exercise for Cost Centers Creation in Tally Prime, for You
Category Name Under

Suresh Sharma
Marketing Department Dinesh Gupta Primary
Mahesh Singh
Rohan Gupta
Finance Department Rajesh Prasad Primary
Kamal Singh
Naman Prasad
Accounts Department Rajat Kapoor Primary
Harish Gupta
➢ Application of Cost Center & Cost Category in Tally Prime that means Allocation of Cost center
Process 1: Create Salary ledger for Payment of Salary to Department
Step: GOT > Create > Ledger
In Ledger Screen Enable Cost Center like that following screenshot

• Process 2: Make Payment of Salary of Department by using Cost center

Step : GOT > Voucher > F5 > Ctrl+H > Single Entry Mode > Enter
In Payment Screen fill following option like,
Account: Select Mode of Payment ‘Cash/Bank’
Particulars: Select ‘Salary A/c’ Ledger
➢ After Selection of Salary A/c Ledger Type Amount of Salary & Select Department (Cost
Category) then select Cost Center & Divide Amount for Each Cost Center.
➢ Fill All Option like this Following Screenshot
*How to Show/Display Cost Centers Reports in Tally Prime?

Step: GOT > Display More Reports > Statements of Accounts > Cost Centers > Category
Summary > Enter
➢ Reports Show Like this Following Screenshot:
Multi-Currencies in Tally Prime Class-2
Multi-Currency: - Multi Currency is used due to Globalization of Businesses Transaction. Business

are trading internationally & May require to use more than one currency for trading. As an Indian
businessman your transactions are in INR locally. Suppose you own an Indian business, and have a
trade agreement with the United Kingdom business, then your trading currency on your trade
agreement may be in pound currency.
Ex: U.S. Dollar (USD), European Euro (EUR), Japanese Yen (JPY), British Pound (GBP), Swiss
Franc (CHF), Canadian Dollar (CAD) etc.
➢ Advantages of Multi Currency in Tally Prime

• You can Create Unlimited Foreign Currencies
• You can Pass Transactions in Multi Currencies.
• Can View Reports like profit& Loss account Balance sheet in Multi currency.
• Automate calculation of Forex gain/ loss
*How to Create Multi-Currency in Tally Prime?

Step: GOT > Create > Currency > Create New (It is Show only First time Creation) > Click on
‘Create New’
➢ Fill all Details Like,

• Symbol – Enter the symbol of currencies (By Paste or by Help of Code)
• Formal Name – Enter the full name of the currency
• Number of Decimal Places – Enter the number of decimal places for the currency, E.g.
Currencies with 2 decimal places like paisa and currencies with three decimal places like
dinar. There are currencies that do not have decimal places, e.g. JPY – Japanese Yen.
• Show Amounts in Million – Done ‘Yes’ if you Show 1000000 INR in 1m INR
• Suffix Symbol to Amount – Done ‘Yes’ If you show Your Balance digit with Currency Symbol.
Like ₹100
• Add space Between amount & Symbol – if set ‘Yes’, Tally Prime will put a space in between
amount and symbol like ₹ 10000.
• Word representing Amount After decimal – Type the name Small part of Currency like INR
currency’ s Small part is ‘Paisa’
• No. of decimal places for amounts in words – This number should be equal to or lesser than
the number specified in ‘Number of decimal places’ field.
*Create $ (USD) in Tally Prime

Fill Details Like that
• Symbol - $ (Press ‘Shift+4’)

• Formal Name – US Dollars

• Number of Decimal Places - 2
• Show Amounts in Million - No
• Suffix Symbol to Amount - Yes
• Add space Between amount & Symbol - No
• Word representing Amount After decimal – Cents
• No. of decimal places for amounts in words – 2
➢ Fill Details like in Following Screen shot
➢ Practice Exercise for Multi-Currency Creation in Tally Prime, for You
Symbol Formal Name Word Representing amount after

decimal
£ (Type code ‘Alt+156’) Pounds sterling Pence
€ (Type Code ‘Alt+0128’) Euro Cents
¥ (Type Code ‘Alt+0165’) Japanese yen Nothing type
*How to Alter Multi-Currency in Tally Prime?

Step: GOT > Alter > Currency > Click on Your ‘Currency’
After Making Changes in Currency Press ‘Ctrl+A’
Note: After Using of Currency in Transactions you can’t delete it
Rate of Exchange: Rate of exchange is the value of a nation's currency in terms of the
currency of another nation or economic zone.
For example, if one U.S dollar exchanges for 72 Indian rupees, then the rate of exchange is
1$ = Rs. 72 or 1 Rs = 1/72 or 0.013889 U.S. dollar.
*How to Define Rate of Exchange for Currency in Tally Prime?

Step: GOT > Create > Rates of Exchange

➢ For Defining rate of Exchange, Fill all Details like,

• Date for rate of Exchange – type Current date for Exchange
• Std Rate – Standard rate is the current rate of currency going on in the market
• Selling Rate (Specified Rate) – Selling rate is the rate of currency in which you are selling
currency to your banker.
• Buying Rate (Specified Rate) – Buying rate is the rate at which you are buying currency from
bank
Example: Rate of Exchange of US Dollars, currently is ₹72 per $1

• Date for rate of Exchange – 01/04/2020
• Std Rate – ₹72/$
• Selling Rate (Specified Rate) –₹73/$
• Buying Rate (Specified Rate) – ₹72/$
➢ Fill all details for all Created Currency like this Following Screenshot:
➢ Use of Multi-Currency ($) in Sales Transaction in Tally Prime

Process 1: Create Foreign Party (Customer) Ledger
In Ledger Screen fill details like Name, Currency of Ledger & Country of Party as Same
Following Screenshot:

Process 2: Pass Sales Invoice in Foreign Currency

Fill all Details like
Party A/c Name – Select Party name like ‘John’
Sales Ledger – Select “Sales” Ledger
Name of item – Select item “Sony TV”
Quantity – Type Number of Item “2”
Rate –For Type Rate in dollars, First type Number then Type Symbol of Currency Like “200 $”
➢ After typing of Foreign Currency, Conversion rate/Exchange rate Automatic Show
All details filled like this following screenshot:
➢ Press “Ctrl+A” for Save this voucher
Bank Reconciliation (BRS) in Tally Prime Class-3
Bank Reconciliation: - Bank Reconciliation is the process of matching the balance between in
company’s books of Account that means Bank ledger in accounting software of company and

Passbook (Bank Statement) given by bank in the end of month. By helping of these features in tally,
we can clear the difference on any specified date between shown in the Passbook’s balances & Bank
Ledger’s balance. Tally allows you to find out difference and helps to agree both the accounts.
A monthly reconciliation helps to catch and identify any

unusual transactions that might be caused by fraud or accounting errors, especially if your business
uses more than one bank account.
➢ Some Reason for occurring difference in balances between Passbook and Bank ledger of
Company
• Cheques deposited in Bank but not credited by the bank
• Cheques issued but not presented for payment
• Interest charged by the bank not recorded in the Cash Book
• Payments by Bank debited in Pass Book only
• Direct payment by the customer in Pass Book only
• Bills discounted & dishonored in Pass Book only
• Cheques deposited, dishonored in Pass Book only
• Interest, Dividend, Commission not recorded in the Cash Book collected by Bank
• Cheques deposited and credited without recording in the Cash Book
*How to reconcile a bank statement in tally?

For bank reconciliation in Tally Prime, we need both the ledgers. That is bank ledger in
company’s book and bank statement from bank. Take a printout or a soft copy in your
computer.
Let’s consider the following example
We are reconciling bank on 30-04-2020
BANK STATEMENT IN COMPANIES BOOKS OF ACCOUNT FROM 01-04-2020 TO 30-04-2020
• Step1 : Analyze the bank statement with bank ledger in Tally

✓ The first step is to cross check both the ledgers. Ledger with company in Tally and statement
of bank.
✓ The debit side of bank statement should be checked with the credit side of bank ledger in
company’s book.
✓ And credit side of bank statement with the debit side of the bank ledger in company’s books.
• Step2: Enter the Transactions which are in Pass Book but not is Bank ledger of
company in Tally.
• Step3: Bank Reconciliation in Tally Prime

Step: GOT > Banking > Bank Reconciliation > Select ‘Bank’ Ledger
Or, GOT > Display More Reports > Account Books > Ledger > Select ‘Bank’ Ledger > Alt+R
➢ In the screen you will find a column ‘Bank date’ in that column enter the date in which the
Particular transactions appeared in bank statement as shown Following Screenshot:
➢ Press ‘Enter’ or “Ctrl+A” for Save this Screen

Note1: Balance as Per Company Books (46905.00) And Balance as per Bank (46905.00) must
be Same like in Above Screen Shot of Reconciliation
Note2: After Reconciliation screen will show as empty without any Transactions
Bill-wise details in Tally Prime Class-4

Bill-Wise Details: - Bill Wise Details is an Advance Accounting feature of Tally Prime that helps
you to track the details of a voucher entry i.e. Credit Sales to customer or Credit Purchases from
Supplier so you can know important information about that particular voucher or bill like, Due Date
of payment, Bill No, Credit Period etc. This option in Tally Prime is used to maintain outstanding
balance & reports of customers and suppliers.
Ex: - You sold a computer to Sohan for ₹50,000 + 12% GST on 1st January, 2021 but you have agreed with
Sohan that he will pay you the amount of ₹50,000 + 12% GST within next 25 days.
• How to activate Bill-wise details in Tally Prime

Step : GOT > F11
In F11 Screen Enable Bill wise details
Bill wise Details – Yes
And Enable Press ‘Ctrl+A’
• How to Implement/Apply Bill-wise details in Tally Prime

Process 1: Create/Alter Customer Ledger with Activation of Bill-wise details
➢ In Ledger Screen Activate Following Option
Maintain Balances bill-by-bill – Yes
Default Credit Period – Type Any Days for Default days as Credit Period like, 30 days
Check for credit days during voucher entry - If you set this option ‘Yes’, Tally will warns you
if the party exceeds the credit period and about pending outstanding.
➢ Fill all Details Like this following Screenshot

Note: If Maintain Bill by Bill Option not show in ledger screen then press F12 & Enable
‘Maintain Balance Bill-by-Bill’ set to ‘Yes’
Note: Create/Alter all Suppliers/customers ledger as explained above
➢ Practice Exercise for Enable Bill wise details in Party Ledger in Tally Prime, for You
Name Under Maintain Default Credit Check for Credit
Balance Bill by Period days during
Bill voucher entry
Ritesh traders Sundry creditor Yes 25 Yes
Geeta LTD. Sundry Debtor Yes 29 Yes
Suresh Varma Sundry creditor Yes 24 Yes
Process 2: Pass Purchase/Sales Voucher Entry with Bill-wise details

Step: GOT > Accounting Voucher > F9/F8
➢ Pass entry as normal way like this following screenshot:
➢ After Inserting Stock Item in Sales/Purchase Voucher Press 4 times ‘Enter’ then there
are Four types of Method of Adjustment in ‘Type of Ref’ column for Bill shown like this
Following screenshot:

➢ Method of Adjustment for Bills are Four types:
1. Advance: This option is selected when you Receive from customer or Pay to
Supplier an advance Amount.
2. Agst Ref: This is used when you are adjusting receipt or Paid amount against a
pending bill.
3. New Ref: This option is used when you are creating a new bill, used when entering
sales & Purchase voucher.
4. On Account: This option is used when you are not sure, against which bill the
payment received or paid. You can use On Account for keeping adjustment as
pending, and later you can adjust against correct bill.
➢ Implementation of New Reference in Method of Adjustment in Tally Prime

1. New Reference : Used for New Bill
➢ Make a new Sales (F8) Voucher Entry Like this following Example
• Date – 01/05/2020
• Party A/c Name – Geeta LDT.
• Sales Ledger - Sales Account
• Name of Item –Sony TV
• Quantity – 5
• Rate – 5000
➢ Like this Following Screenshot
➢ Press Four times Enter after inserting ‘rate’ of Item & fill details like
• Type of Ref - Select “New Ref”
• Name – Type Bill Number as Your Choice like, “DKP1”
• Due Date or Credit days - Auto fill
• Amount- Auto fill

➢ Fill Details like this following Screenshot:
• Note: Pass New Purchase Voucher Bill Entry by Following Same Step in Above Example for
new Sale Voucher Entry.
➢ Practice Exercise for Make a new Purchase(F9) Voucher Entry Like this following
Example
• Date – 02/05/2020
• Party A/c Name – Ritesh traders
• Sales Ledger - Purchase Account
• Quantity – 5
• Rate – 4000
➢ For Showing Our Outstanding Bills

• Step : GOT > Display more Reports > Statement of Accounts > Outstanding > Ledger > Select
your ‘Supplier or Customer’ Ledger For Showing Outstanding >Press ‘F2’ for Change date >
Enter
➢ Implementation of ‘Agst Ref’ in Method of Adjustment in Tally Prime

1. Agst Ref : Used for old Bill
➢ Make a new Receipt (F6) Voucher Entry Like this following Example in Single Entry
mode
• Date – Type date of receipt Payment From Customer like 01/06/2020
• Account – Select ‘Cash’
• Particulars – Select your Customer like ‘Geeta LTD.’
➢ After selection of customer ledger press Enter then screen will shown like this
➢ Select’ Agst Ref’ from list of Type of Ref then Pending Bills Show of this Customer
➢ Select Pending Bills from List like this following screen shot:
➢ Press ‘Ctrl+A’ for save this screen & Final Receipt Voucher Entry Shown Like this
➢ Practice Exercise for Make a new Payment(F5) Voucher Entry Like this following
Example
• Date – Type date of Paid Payment to Supplier like, 02/06/2020

• Particulars – Select your Supplier like ‘Ritesh traders’
➢ After selection of Supplier ledger press Enter & Select’ Agst Ref’ from list of Type of Ref
then Pending Bills Show of this Supplier
➢ Select Pending Bills from List
➢ Press ‘Ctrl+A’ for save this screen
➢ Implementation of ‘Advance’ in Method of Adjustment in Tally Prime

1. Advance : Used for pay or Receive in Advance
mode
• Date – Type date of receipt Payment as Advance From Customer like 02/06/2020


➢ Select’ Advance from list of Type of Ref then fill all details like,
• Name – Type Any Bill Number for Future reference like, ‘DKP5’
• Amount – Type Advance Amount like, “20000”
➢ After filling Above details Screen Shown like this Following Screenshot
➢ Practice Exercise for Make a new Advance Payment(F5) Voucher Entry Like this
following Example
• Date – Type date of Paid Advance Payment to Supplier like, 03/06/2020

➢ After selection of Supplier ledger press Enter & Select’ Advance’ from list of Type of Ref
➢ Fill details like
• Name – type Bill No: ‘DKP8’
• Amount – Type Advance Amount like, 80000
➢ Implementation of ‘On Account’ in Method of Adjustment in Tally Prime

1. On Account : Used for Suspense Payment or Receipt
mode
• Date – Type date of receipt Payment as Suspense From Customer like 02/06/2020
➢ Select ‘On Account’ from list of Type of Ref then fill all details like,
Amount – Type ‘On Account’ Amount like, “10000”
➢ After filling Above details Screen Shown like this Following Screenshot
➢ Practice Exercise for Make a new Suspense Payment(F5) Voucher Entry Like this
following Example

• Date – Type date of Paid Suspense Payment to Supplier like, 03/06/2020

➢ After selection of Supplier ledger press Enter & Select ‘On Account’ from list of Type of
Ref
➢ Fill details like
• Amount – Type Amount for On Account like, 5000
Interest Calculation in Tally Prime Class-5
Interest: - Interest is a legitimate return on Money invested and chargeable in the

business would on loan and also on delayed payment.
Interest can be calculated on the basis of Simple Interest & Compound Interest.
Interest is also calculated on outstanding receivables or payables.
• Simple Interest: Simple interest is an interest which calculated on the principal

amount only.
Ex: 1.Goods Purchased from Suresh of 44,000 @ 10% by conditions on Simple interest in
Monthly basis.
1st month interest – 4400 on 44,000 @ 10%
2nd month interest – 4400 on 44,000 @ 10%
3rd month interest – 4400 on 44,000 @ 10%
Total Interest of 3 Months = 13200
• Compound Interest: Compound interest is calculated on the Principle +

Accumulated Interest.
Ex- Goods Purchased from Ram Malhotra of 44,000 @ 10% by conditions on
Compound interest in monthly basis.
1st month interest – 4400 on 44,000 @ 10%
2nd month interest – 4840 on 48,400 @ 10%
3rd Month Interest – 5324 on 53240 @ 10%
Total Interest of 3 Months = 14564
➢ Hope you got an idea on simple interest and compound interest.
*How to Activate Interest Calculation Option in Tally Prime?

Step: GOT > F11
Activate the Option Enable Interest Calculation & Bill-wise entry Like that Following
Screenshot:

• How to Implement/Apply Interest Calculation Option in Tally Prime

Process 1: Create/Alter Customer Ledger with Activation of Interest Calculation
Option
➢ In Ledger Screen Activate Following Option
Name – Type Supplier or Customer Ledger name, Like Ritesh Mishra
Under – Select Sundry Creditor/Debtor
Maintain Balances bill-by-bill – Yes
Default Credit Period – Type Any Days for Default days as Credit Period like, 30 days
Check for credit days during voucher entry - If you set this option ‘Yes’, Tally will warns you
if the party exceeds the credit period and about pending outstanding.
Activate Interest Calculation – ‘Yes’ & Press ‘Enter’
➢ Press F12 for Advance Parameter option in Interest Calculation screen & Enable
• Use Advance Interest Parameters – Yes & Press ‘Enter’
After Pressing ‘Enter’ Screen will appear like this following Screenshot
➢ In this Above Screenshot Enable Following Option like,

• Calculate Interest Transaction-by-Transaction - This option Provide us to calculate interest
on each transaction for this Party. Set to ‘Yes’
• Override parameters for each transaction - activating this option will help you to change the
parameters, that is the rate and interest style will be asked during sales/Purchase voucher
entry.
• Include Transaction date for Interest Calculation
For amounts added – ‘Yes’ this Option is useful when you add
transaction date for Calculation of Interest otherwise set to ‘No’.
• Rate – Type rate of Interest like,10%
• Per – There are Four types of interest style given
▪ 30 Day Month - this style Calculate Interest on the basis of 30 Day in one Month.
▪ 365 Day Month - this style Calculate Interest on the basis of 365 Day in one Year.
▪ Calendar Month – this style Calculate Interest on the basis of Month-wise (28, 29,
30 or 31 Days)

▪ Calendar Year – This style Calculate Interest on the basis of Year-wise (365 or 366)
➢ Select Anyone Style According to you Necessity , I Select ‘calendar Month’
• On – There are three type of Interest Balance given
▪ All Balance – This Type of balance use for both Pay & Receive Interest from
any Party.
▪ Credit Balance – This Type of balance use for Pay Interest only to any
creditor.
▪ Debit Balance - This Type of balance use for Receive Interest only from any
Debtor.
➢ Select Anyone Balance According to you Necessity , I Select ‘Debit Balance’
• Applicability – Here two options are available
▪ Always – this Option calculate interest from next day of transaction

▪ Post due Date – This option calculate interest from due date given by you, like 10
days after. When you select this option tally ask for due days by how many days
after you apply interest calculation for selected party.
➢ Select Anyone Balance According to you Necessity , I Select ‘Always’
• Calculation From – It is also show three types of options
▪ Date of Applicability – this Option calculate interest from next day of transaction.
▪ Due Date of Invoice/Ref – this option apply interest calculation on party from due
date of Invoice/Reference given by you during voucher entry.
▪ Eff. Date of Transaction – this option calculates interest from effective date of
Transactions given by during voucher.
➢ Select Anyone Balance According to you Necessity , I Select ‘Date of Applicability’
• Rounding – there are three types of rounding method given
▪ Downward – In this type of rounding, the value in Paisa is always rounded

downward to the nearest Rupee. Like ₹3.60 to convert in ₹3
▪ Normal - In this type of rounding, if the value in Paisa is 50 Paisa or more, it is
rounded upward to the nearest Rupee, and, if the value in Paisa is less than 50 Paisa,
it is rounded downward to the nearest Rupee.
▪ Upward - In this type of rounding, the value in Paisa is always rounded upward to
the nearest Rupee. Like ₹3.60 to convert in ₹4
➢ Select Anyone Balance According to you Necessity , I Select ‘Normal’
• Limit - Type ‘1’
➢ After Filling All Option Screen of Interest Parameters will show like this following
screenshot:

➢ After Save Interest Parameter screen, Ledger screen look like this following screenshot.
Note: If Maintain Bill by Bill Option not show in ledger screen then press F12 & Enable
‘Maintain Balance Bill-by-Bill’ set to ‘Yes’
Note: Create/Alter all Suppliers/customers ledger as explained above
➢ Practice Exercise for Enable Interest Calculation in Party Ledger in Tally Prime, for You
Name Under Maintain Default Check for Activate
Balance Bill Credit Credit days Interest
by Bill Period during Calculation
voucher entry
Ritesh traders Sundry creditor Yes 25 Yes Yes & Fill
Geeta LTD. Sundry Debtor Yes 29 Yes Yes & Fill
Suresh Varma Sundry creditor Yes 24 Yes Yes & Fill

Process 2: Pass Sales Voucher Entry in Invoice mode for Calculate Interest on
Customer
Step: GOT > Accounting Voucher (F8 )
➢ Pass entry as normal way like this following screenshot:
➢ After Inserting Stock Item in Sales/Purchase Voucher Press 4 times ‘Enter’ then there
are Four types of Method of Adjustment in ‘Type of Ref’ column for Bill shown like this
➢ Select ‘New Ref’ from Method of Adjustment & type any Bill No: in Name Column
➢ Press ‘Ctrl+A’ for Save this screen
Note: Pass New Purchase Voucher Bill Entry by Following Same Step in Above Example for
new Sale Voucher Entry.
➢ Practice Exercise for Make a new Purchase(F9) Voucher Entry Like this following
Example
• Date – 02/04/2020
• Party A/c Name – Ritesh traders
• Sales Ledger - Purchase Account
• Quantity – 5
• Rate – 4000


➢ For Showing Interest Calculation Reports

• Step : GOT > Display more Reports > Statement of Accounts > Interest Calculation > Ledger
> Select your ‘Supplier or Customer’ Ledger For Showing Outstanding >Press ‘F2’ for Change
Period > Enter > Alt+F1
➢ After reaching above step Interest calculation screen shown like this following
screenshot:
➢ In the report you can see the number of days; the bill is overdue, % of interest & interest
amount.
Process 3: Debit Note voucher Type Alteration for Received Interest Amount from
Customer
Step: GOT > Alter > Voucher Type > Debit Note > Enter
➢ Screen shown like this following screenshot
➢ In Debit Note Alteration Screen Define ‘Name of Class’

➢ In Name of Class Type Name Like I type,’ S.I’ & Press Enter
➢ And Enable the Option “Use Class for Interest Accounting” set to ‘Yes’ & Press ’CtrlA’ for
Save this screen
➢ After Enable all Option Screen will show like this Following Screenshot

➢ Press Ctrl+A for Save Debit Note changes
Note : Make Changes Also in Credit Note Voucher as Same way in Above Step of Debit Note
Voucher type for Paid Interest Amount to Supplier
Process 4: Debit Note voucher Entry for Received Interest Amount from Customer
➢ The calculated interest does not affect the books of account. This has to be accounted
if needed. Normally when we debit a party account we issue a document called debit
note. You have to create a debit note in tally and send a printout to the party.
Step: GOT > Voucher > Alt+F5 > Select Class ‘S.I’ > Ctrl+H > Select ‘As Voucher’ > Enter
➢ For Passing Entry in Debit Note Voucher fill details like ,
• Date – Type Date when you received interest from customer like, 01/05/2020
• Dr – Ritesh Mishra
➢ After selection of Customer, List of Interest Bills Shown like this screenshot:
➢ Select one from list & Press ‘Ctrl+A’

➢ After Pressing Ctrl+A method of Adj. shown select ‘Agst Ref’ and After Select Pending
Bills like this following screenshot:

• Cr – Select ‘Interest Received’ ledger (Under ‘Indirect Income’ group)

➢ After Filling All Above Details Screen will shown like this screenshot:
Note : Pass Credit Note Voucher Entry as Same way in Above Step of Debit Note Voucher
entry for Paid Interest Amount to Supplier by Filling following Details
Date -02/05/2020
Cr – Ritesh Traders
Dr – Interest Paid (Indirect Expense)
Process 5: Receipt (F6) voucher Entry for Received all dues Amount with Interest
Amount from Customer
Step: GOT > Voucher > F6 > Ctrl+H > Single Entry > Enter
➢ For Passing Entry in Receipt Voucher fill details like ,
• Date – Type Date when you received all Outstanding from customer like, 01/05/2020
• Account – Cash/Bank
• Particulars – Ritesh Mishra
➢ After selection of Customer, Method of Adj. select ‘Agst Ref’ and After Select Pending
Bills Shown like this screenshot:
Note : Pass Payment Voucher Entry as Same way in Above Step of Receipt Voucher entry for
Paid Outstanding with Interest Amount to Supplier by Filling following Details
Date -02/05/2020
Account - Cash/Bank
Particulars– Ritesh Traders

Budget Management in Tally Prime Class-6
• Budget Management: - Budget management is an effective tool for organizations to

better manage their expenses and costs. It is traditionally the domain of financial managers
and controllers, but certainly as important for procurement management.
Business organizations determine how much financial scope is
available for expenditure based on budgets making it an indirect factor for quality. And
thereby making an accurate estimate of costs to be allocated by budget holders
organizations are able to control expenditures and not be faced with any surprises.
EX: Marriage Budget, Company Expense Budget, Festival Budget
✓ Process 1 : Create Budget

*How to Create Budget in Tally Prime?
Step: GOT > Create > Click on ‘Show More’ > Budget > Enter
➢ After reaching the above step Screen will shown like this following screenshot:
➢ Fill all Details Like,

• Name – Type Name of Budget
• Under – Select ‘Primary’
• Period of Budget
▪ From – Type Starting date of Budget
▪ To – Type End date of Budget
• Set/Alter Budgets of
▪ Groups – Set to ‘Yes’
➢ After set to ‘Yes’ screen will show like this screenshot:
▪ Fill all Details like,

▪ Group Name - Select under required Group for Creation of Budget
▪ Type of Budget - After Selection of group Select Type of Budget
1. On Closing Balance - This type of Budget used when we show record of all expenses
in budget in the form of closing balance.

2. On Nett transactions – This type of budget used when we show record of all
expenses in budget in the form of month wise breakup.
➢ Select anyone ‘Type of Budget’ from them
▪ Amount – Type the Budget estimated Amount here & Press ‘Ctrl+A’
• Ledgers – Set to ‘Yes’

➢ After set to ‘Yes’ screen will show like this screenshot:
▪ Fill all Details like,

▪ Account Name - Select under required Ledgers for Creation of Budget
▪ Type of Budget - After Selection of Ledgers Select Type of Budget
3.On Closing Balance - This type of Budget used when we show record of all expenses
in budget in the form of closing balance.
4. On Nett transactions – This type of budget used when we show record of all
expenses in budget in the form of month wise breakup.
➢ Select anyone ‘Type of Budget’ from them
▪ Amount – Type the estimated Amount here of Budget of selected ledger
➢ After Selection of all ledgers under budget Press ‘Ctrl+A’
➢ Example1: Fill Details like that

• Name – Company Budget
• Under – Primary
• From – 01/04/2020
• To – 31/03/2021
• Groups – Yes
• Group Name - Indirect Expense
• Type of Budget - On Closing Balance
• Amount – 700000
➢ Like that Following Screenshot
• Ledgers –Yes
➢ Note: First of all Create All Expense Ledgers Under putting Indirect Expense then select
one by one in Budget screen of Account

➢ Create Ledger
Name Under
RENT Indirect Expense
ELECTRICITY Indirect Expense
TELEPHONE Indirect Expense
INTERNET Indirect Expense
WATER Indirect Expense
➢ After Creation of Ledgers Select One by One in following This way
Account Name Type of Budget Amount
RENT On Closing Balance 200000
ELECTRICITY On Closing Balance 100000
TELEPHONE On Closing Balance 100000
INTERNET On Closing Balance 100000
WATER On Closing Balance 200000
➢ After selecting all Ledgers in Account screen, Screen will shown like this following
screenshot:

➢ After filling all details, Final Budget Creation Screen will show Like this Following
Screenshot:
*How to Display/Alter Budget in Tally Prime?

Step: GOT > Alter > Budget > Select Your ‘Budget name’ > Enter
➢ After Display or Changes Press ‘Ctrl+A’ for Save changes
➢ For Delete Budget Press ‘Alt+D’ & Press Enter
➢ Practice Exercise for Creation of Budget in Tally Prime, for You

➢ Example2: Fill Details like that
• Name – Company Expense Budget
• Under – Primary
• From – 01/04/2020

• To – 31/03/2021
• Groups – Yes
• Group Name - Indirect Expense
• Type of Budget - On Closing Balance
• Amount – 1000000
• Ledgers –Yes
Account Name Type of Budget Amount
RENT On Closing Balance 300000
ELECTRICITY On Closing Balance 100000
TELEPHONE On Closing Balance 200000
INTERNET On Closing Balance 100000
WATER On Closing Balance 300000
✓ Process 2 : Payment Entry of Your Expenses

➢ Pass Payment Entry of Our Expenses in Budget
Step: GOT > Voucher > F5 > Ctrl+H > Single Entry
➢ Pass Entry as Normal Way like this Following Screenshot:
➢ Press ‘Ctrl+A’ for save Screen
• For Show Budget Reports

Step: GOT > Display more Reports > Trial Balance > Select ‘Indirect Expense’ > F10 > ‘Alt+F2’
for Change Period
➢ After reaching the Above Step, Screen will show like this following Screenshot:


Tally Prime Advance Inventory
Chapter-3: Advance Inventory in Tally Prime

Batch-wise Details in Tally Prime Class-1 ......................................................................................... 129
Track Additional Costs for Purchases in Tally Prime Class-2 ............................................................ 133
Bill of Material (BOM) in Tally Prime Class-3 .................................................................................. 136
Zero Valued Transactions in Tally Prime Class-4 .............................................................................. 142
Actual & Billed Quantity Transactions in Tally Prime Class-5 .......................................................... 145
Price Levels & Price List in Tally Prime Class-6 ............................................................................... 148
Point of Sale (POS) in Tally Prime Class-7 ........................................................................................ 153
Reorder Levels in Tally Prime Class-8 ............................................................................................... 158
Advance Inventory in Tally Prime
Batch-wise Details in Tally Prime Class-1
Batch-wise Details: - Batch-wise details are used to identify the movement of Inventory
in batches or Lots. Although, this is a requirement primarily of the pharmaceutical industry.
The same can be used by other industry that maintains manufacturing and expiry details of
Perishable goods.
Or this Advance features useful for maintain manufacturing and expiry date of any
Perishable stock-item.
Ex: Medicines & Fooding goods are Perishable stock-item, so we need to maintain its
manufacturing and Expiry date.

❖ Process 1: Activation of Batch-wise details
*How to Activate Batch-wise Details in Tally Prime?

Step: GOT > F11
Activate the Option “Enable Goods & Services Tax (GST)”, Like that Following Screenshot:-
• Process 2: Create stock-Item
*How to Create Stock-item of Perishable goods in Tally Prime?

Step: GOT > Create > Stock-item > Enter
➢ In Stock-Item Creation Screen Fill all details like,
• Name – name of Perishable stock-item
• Under – Select Under group for stock item if you have no then create by Pressing ‘Alt+C’
• Category – Select Under Category for stock item if you have no then create by Pressing
‘Alt+C’
• Units - – Select units for stock item if you have no then create by Pressing ‘Alt+C’
• Maintain in Batches – Set to ‘Yes’
• Track date of Manufacturing – Set to ‘Yes’
• Use Expiry dates – Set to ‘Yes’
Note: If you don't see Manufacturing & Expiry Option in Stock-Item Creation Screen, then Press F12
& Enable Batches like following Screenshot:
❖ Example: Create Fever Reducer Medicine

➢ Fill details like,
• Name – Ibuprofen
• Under – Medicine
• Category – Fever Reducer
• Units - Strip
• Maintain in Batches – Yes
• Track date of Manufacturing –Yes
• Use Expiry dates – Yes
➢ By Using Above Example of Stock-Item, fill details like following Screenshot:

➢ Practice Exercise for Creating Perishable Stock-Item to Maintain Batches, for You
Name Under Category Units Maintain Track date of Use
in Batches Manufacturing Expiry
dates
Acetaminophen Medicine Fever Strips Yes Yes Yes
reducer
Saridon Medicine Pain killer Strips Yes Yes Yes
Aspirin Medicine Fever Strips Yes Yes Yes
reducer
Aleve Medicine Pain Strips Yes Yes Yes
Reliever
• Process 3: Purchase Perishable goods with use of Batch-wise details
*Purchase Voucher Entry (F9)

Step: GOT > Voucher > F9
➢ In Purchase Voucher Screen, Pass Entry by filling following details like,
• Party A/c Name – Select any Creditor like ‘Ritesh Mishra’
• Name of Item – Ibuprofen
➢ After selecting Item press ‘Enter’ then Screen will appear like that following screenshot:
d
➢ Press Enter & type ‘Batch/lots’ Number (which is given on every perishable goods) in ‘New
Number’ Screen Like following screenshot:
➢ Press Enter & fill other details like,

▪ Quantity - 5
▪ Rate – 500
▪ Mfg Dt. - type manufacturing date of Ibuprofen I type 01/05/2020
▪ Expiry Date - type Expiry date of Ibuprofen I type 01/05/2021
➢ Like following screenshot:

➢ Press Enter & Final Purchase Voucher screen shown like this following screenshot:
• Process 3: Sale Perishable goods with use of Batch-wise details
*Sale Voucher Entry (F8)

➢ In sale Voucher Screen, Pass Entry by filling following details like,
• Party A/c Name – Select any Debtor like ‘Ritesh Gupta (Regular)’
• Name of Item – Ibuprofen
➢ After selecting Item press ‘Enter’ then Screen will appear like that following screenshot:
➢ Press Enter for Selecting ‘Batch/lots’ Number then type Quantity, Rate like this screenshot:
➢ Press ‘Ctrl+A’ & Final Sale Voucher screen shown like this following screenshot:
➢ Press ‘Ctrl+A’ for Save Screen
• For Showing Our batch-Wise Stock Details

Step – GOT > Display more Reports > Inventory books > Batch > Select Stock-item & Batch >
Enter

➢ Screen will show your inventory details like following screenshot:
Note: You Can Purchase & Sale another Perishable Stock- Item by using Batch-wise Details as
same in above Example
Track Additional Costs for Purchases in Tally Prime Class-2
• Additional Cost for Purchases: - The costs of an Item is the rate at which the
item is purchased. However, there are other expenses like packing charges, Freight
charges; cartage incurred etc. which add to be the costs of purchasing of item.
Thus, the additional cost details are required to be added
to the actual cost of purchases.
Ex: Purchased 6 Nos Hp Laptop on 60000 & also pay for packing charges 100 for
each Hp laptop. That means total packing charges for 6 hp laptop will be 600.
❖ Process 1: Activation of Track Additional Costs for Purchases
*How to Activate Track Additional Costs for Purchases in Tally Prime?

Step: GOT > Alter > Voucher Type > Purchase
In Purchase Alteration Screen, Activate the Option Track Additional Costs for Purchases, Like
that Following Screen shot:
❖ Process 2: Create Ledger of Additional Costs for Purchases
*How to Create Additional Costs for Purchases in Tally Prime?

➢ In Ledger screen fill details like,
• Name – type name of Additional cost
• Under – select ‘Direct Expense’
• Inventory Value are Affected – set to ‘No’

• Method of Appropriation in Purchase invoice – there are two method of

Appropriation
▪ Appropriate by Quantity – this method calculate additional expense

according to quantity of item. Like, if 2 Nos Sony TV purchased & each Sony
TV’s rate is 5000 and also pay for additional cost on purchase, packing
charge is 100 for each Sony TV That will total packing charge incurred 200
for 2 Sony TV.
▪ Appropriate by Value – This method calculate additional expense according

to Value of item. Like, if 2 Nos Sony TV purchased &Total value of Sony TV
Is 10000 and also pay for additional cost on purchase, packing charge is 100
for each 1000 that will total packing charge incurred 1000 for 10000.
➢ Select anyone method according to your necessity for calculate additional cost.
Note: if ‘Method of Appropriation in Purchase invoice’ option will not show in

ledger screen then press F12 & Activate the following option in this screenshot
1. Example: Create ‘Packing Charges’ additional cost.

• Name – Packing charges
• Under – Direct Expense
• Inventory Value are Affected – No
• Method of Appropriation in Purchase invoice – Select ‘Appropriate by Qty’
➢ In Above Example, fill all details like following screenshot:

➢ Practice Exercise for creation of Additional cost for Purchase in Tally Prime, for You
Name Under Inventory Value Method of

are Affected Appropriation in
Purchase invoice
Freight charges Direct Expense No Appropriate by Qty
Wages expense Direct Expense No Appropriate by Qty
Cartage incurred Direct Expense No Appropriate by Qty
❖ Process 3: Add Additional Costs for Purchases in Purchase Invoice
*How to Pass Purchase Invoice with Additional Costs for Purchases in Tally Prime?
• Party A/c Name – Select any Creditor like ‘Ritesh Gupta’
• Name of Item – Take any Item, I take ‘Hp Laptop’
• Quantity – 5
• Rate - 10000
➢ After selecting Items & typed its rate press ‘Enter’ two times for add Additional Costs like, packing
charges , freight charges etc. select additional cost & typed its rate or Amount.
➢ After filling all details final screen will show like this following screenshot:
Note: You Can Purchase another Stock- Item with Additional costs as same in above Example

Showing Reports with Additional Cost Details

Step: GOT > Stock Summary
➢ In this above stock summary Reports, Rate of each Hp laptop is showing 10,300.
This is because of
o Total Additional cost Value = Packing + Freight = 500+1000 = 1500
o Total Number of Hp Laptop = 5
o Rate of additional cost for each Item = 1500/5 = 300
o Rate of each Hp Laptop = 10000
o So, Rate of each Hp Laptop with additional cost = 10000+300 = 10300.
Bill of Material (BOM) in Tally Prime Class-3
Bill of Material (BOM): - A Bill of Material is the Pre-defined list of raw material, sub-
components, parts required for manufacturing finish goods. In Simple, This is the process of listing of
items that make up another item is made possible in Tally by enabling the Bill of Materials Facility.
Ex: For Manufacturing of Desktop Computer, RAM, Mouse, Keyboard, CPU, Monitor etc. raw
material are required. Raw materials of Desktop computer are example of ‘Bill of Material’.
❖ Process 1: Create Raw Materials (Bill of Materials)
*How to Create Raw Materials (Bill of Material) in Tally Prime?

Step: GOT > Create > Stock-Item

➢ Create One by One Raw materials (e.g.: Mouse, Keyboard, CPU, GPU, Monitor, RAM,
Hard disk) for manufacturing of Desktop computer like following screenshot:
➢ Create all Raw materials for desktop computer as same way in above screenshot:
Name Under Units
Keyboard Electronics Parts Pcs.
CPU Electronics Parts Pcs.
GPU Electronics Parts Pcs.
Monitor Electronics Parts Pcs.
RAM Electronics Parts Pcs.
Hard disk Electronics Parts Pcs.
➢ Practice Exercise for Create Raw materials for manufacturing ‘Television’ for
you.
Name Under Units
VDU Electronics Parts Pcs.
Picture Tube Electronics Parts Pcs.
IC-Chips Electronics Parts Pcs.
Sound Card Electronics Parts Pcs.
Glass Electronics Parts Pcs.
❖ Process 2: Create End Product with including Raw material (Bill of Materials).
*How to Create End Product with including raw material (BOM) in Tally Prime?
➢ First of all Activate Bill of Material option in Item Screen, for activation Press ‘F12’
then enable this option like following screenshot:
➢ After Enable ‘Bill of Materials’ option, Create End Product or Manufacturing Item by filling
these details like,
• Name – Type Name of End Product like, “Desktop Computer”
• Under – Select Under stock-Group like, “Electronics Parts”
• Units – Take Units for measures end Product like, ‘Pcs.’
• Set Components (BOM) – Set to ‘Yes’
➢ After Components (BOM) set to ‘Yes’ screen will appear like this screenshot:

➢ Type name of Bill of Material (BOM) like following screenshot :
➢ After type name of BOM Press Enter, then press F12 then enable option ‘Define type of
Component for BOM’ by this following screenshot:
➢ After Enable ‘Define type of Component for BOM’ option then screen will shown like this
following screenshot:
➢ In this Above screen fill details like,

• Unit of manufactures – Type ‘1’ here for manufacturing end Product
• Item – Select all raw materials of End Product (Desktop Computer)
• Location - Select Godown where are you storing raw materials (If you have no Godown
then Create by Pressing ‘Alt+C’ )
• Type of Item – in this column four types are available
▪ By Product – Use this when selected item is ‘By Product’ of End Product
▪ Component – Use this type when selected item is Component or raw
material of end product.
▪ Co-Product – Use this when selected item is ‘Co-Product’ of End Product
▪ Scrap – Use this when selected item is ‘Scrap’ of End Product
• Quantity Rate (%) – Type Number or Percentage of By Product, Component, Co-
Product or Scrap which is used or made in manufacturing of one end product.

➢ Press ‘Ctrl+A’ two times for save screen

➢ Final End Product creation screen shown like this following screenshot:
➢ Press ‘Ctrl+A’ for save screen
Note: You Can Create End Product as Television by following same step in above Example
❖ Process 3: Purchased Raw material (Bill of Materials).
* Purchased Raw materials of End Product (Desktop Computer)

• Party A/c Name – Select any Creditor like ‘Ritesh Gupta’
• Name of Item – Select all Raw Materials
• Quantity – Type Number of Quantity of each Raw material according to necessity to
manufacture how many end products.
• Rate – Type rate of each raw materials according to market value.
➢ Fill all Above details like following screenshot:

Note: You Can Purchase Raw Materials of End Product (Television) by following same
step in above Example
❖ Process 4: Create Manufacturing journal Voucher Type.
* How to create Manufacturing Journal voucher type for manufacturing end

Product.
Step: GOT > Create > voucher Type
➢ In Voucher type creation screen fill details & enable option like,
• Name – Type ‘Manufacturing Journal’
• Select type of Voucher – Select ‘Stock Journal’
• Use as a Manufacturing Journal – Set to ‘Yes’
➢ Fill Above example like following screenshot:

❖ Process 5: Manufacturing of End Product
* Manufacturing of End Product (Desktop Computer) by using Raw materials.

Step: GOT > Voucher > Alt+F7 > Select “Manufacturing Journal” > Enter
➢ In Manufacturing Journal Voucher Screen, Pass Entry by filling following details like,
• Name of Product – Select your End Product which is Manufactured like ‘Desktop
Computer’
• Name of BOM – Auto fill
• Location – Select Location for Manufacturing like ‘Sasaram Godown’
• Qty – Type Number of End Product to manufactured like ‘5’
• Name of Item (Co-Product/By-Product/Scrap) – In this Column, if any Co-
Product/By-Product/Scrap made after manufacturing of end Product then Create it
& Type its Percentage or Quantity like ‘Scrap’.
• Type Of Additional Cost – In this area, If any additional cost Incurred during
manufacturing of end product then create or select it & types Its Percentage or
Amount like ‘Packing Charges’.
➢ Fill all Above Details Like Following Screenshot:
Note: You Can Manufacture End Product (Television) by following same step in above
Example.

Zero Valued Transactions in Tally Prime Class-4
Zero Valued Transactions: - Zero Valued transaction is an advance inventory option of Tally
Prime. It is useful when we Purchase or Sell a particular item as free that mean the value of item is
Zero.
This is done so that the entry is reflected only in the inventory books but not in the
accounting books.
Note: Zero value transactions are allowed only in Sales or Purchase vouchers only.
Ex: Suraj LDT. Purchased 3 Nos Samsung Galaxy M31 smartphone on Rs 15000 each and gets 3 Nos
of Samsung Earphone free.
❖ Process 1: Activation of Zero value Transactions
*How to Activate Zero Valued Transactions in Tally Prime?

Step: GOT > Alter > Voucher Type > Purchase/Sales
➢ In Purchase/Sales voucher alteration screen enable the option “Allow zero-
valued transactions” Like that Following Screenshot:-
Note: You can also enable ‘Allow zero-valued transactions’ for sales voucher screen same
way by following above process.

❖ Process 2: Create Stock-Item for Purchasing or Selling
Ex: 1.Suraj LDT. Purchased 3 Nos Samsung Galaxy M31 smartphone on Rs 15000 each and
gets 3 Nos of Samsung Earphone free.
*How to Create Stock-Item in Tally Prime?

➢ Create all those item which you purchase/sale as free. Like that following
screenshot:
➢ Practice exercise for create Item for Zero valued transactions. for You
Name Under Units

Oppo A31 Smartphone Smartphone Pcs.
Oppo Bluetooth Primary Pcs.
❖ Process 3: Zero Valued Transactions Entry
Ex: 1.Suraj LDT. Purchased 3 Nos ‘Samsung Galaxy M31 smartphone’ on Rs 15000 each and
gets 3 Nos of ‘Samsung Earphone’ free.


Step: GOT > Voucher > F9 > Ctrl+H > Item Invoice
➢ Pass Entry By filling following details like
• Party A/c Name – Take any Creditor, I take ‘Mahesh Sharma’
• Purchase ledger – Purchase A/c
• Name of Item – Select that item which you purchase by paying Amount and
also select that item which you receive as free. Like ‘Samsung Galaxy M31
smartphone’ – 3 Pcs. – 15000 And ‘Samsung Earphone’ – 3 Pcs – 0
➢ Fill all details of above example like following screenshot.
➢ Practice Exercise for Zero Valued Transactions Sales Entry, for you
Ex: 2.Rajesh LDT. Sold 3 Nos ‘Oppo A31 smartphone’ on Rs 12000 each and gets 3 Nos of
‘Oppo Bluetooth’ free.
• Party A/c Name – Take any Debtor, Like ‘Rajesh Sharma’
• Purchase ledger – Sale A/c
• Name of Item – Select that item which you Sale by Receiving Amount and also select
that item which you send as free. Like ‘Oppo A31 smartphone’– 3 Pcs. – 12000 And
‘Oppo Bluetooth’ – 3 Pcs – 0
• For Showing Inventory Reports

Step: GOT > Stock- Summary > F5
➢ In Stock summary, Zero Value Transactions reports will show like this following
Screenshot:

Actual & Billed Quantity Transactions in Tally Prime Class-5
Actual and Billed Quantity Transactions: - This is an advance inventory option of Tally Prime.
It is useful when we received or sent extra same Inventory as Quantity Discount. Recording of Actual
Quantities and the Billed Quantities are essential to get the accurate stock values and sale/purchase
value i.e. the Books of Accounts should be updated with the Billed quantities and Stocks has to be
updated only with the Actual Quantities. Tally Prime allows you to record both these in different
fields i.e., Billed and Actual Quantity separately in the same invoice.
Ex: Rohan Sharma Purchased 60 kgs Basmati Rice from Ritesh Gupta on Rs 70 each Kgs but he paid
Amount for only 50 Kgs Basmati rice due to low quality of Rice. In that transaction Actual Quantity of
Rice purchased 60 kgs but billing Quantity of Basmati rice is 50 kgs.
Note1: The Actual Quantity updates stock and the Billed Quantity affects the accounts and thus
shows the correct position of both Accounts as well as Inventory.
Note2: Actual and Billed Quantity transactions are allowed only in Sales or Purchase vouchers only.
❖ Process 1: Activation of Actual and Billed Quantity feature
*How to Activate Actual and Billed Quantity features in Tally Prime?

Step: GOT > F11
Activate the Option “Use Separate Actual and Billed Quantity Columns in Invoices”, Like
that Following Screenshot:

❖ Process 2: Create Stock-Item for Purchasing or Selling
Ex: Rohan Sharma Purchased 60 kgs Basmati Rice from Ritesh Gupta on Rs 70 each Kgs but
he paid Amount for only 50 Kgs Basmati rice due to low quality of Rice. In that transaction
Actual Quantity of Rice purchased 60 kgs but billing Quantity of Basmati rice is 50 kgs
*How to Create Stock-Item in Tally Prime?

➢ Create all those item which you purchase/sale as Quantity Discount. Like that
➢ Practice exercise for create Item for Actual & Billed Quantity transactions. for
You
Name Under Units

Wheat Fooding item Kgs.
Pulse Fooding item Kgs.
❖ Process 3: Actual and Billed Quantity Transactions Entry
Ex: 1.Rohan Sharma Purchased 60 kgs Basmati Rice from Ritesh Gupta on Rs 70 each Kgs but
he paid Amount for only 50 Kgs Basmati rice due to low quality of Rice. In that transaction
Actual Quantity of Rice purchased 60 kgs but billing Quantity of Basmati rice is 50 kgs


➢ After follow above step then screen of Purchase voucher will shown like this following
screenshot:
➢ Pass Entry By filling following details like

• Party A/c Name – Take any Creditor, I take ‘Ritesh Gupta’
• Purchase ledger – Purchase A/c
• Name of Item – Select that Item which you create for Purchase
• Quantity (Actual) – Type Actual Quantity value which you received in time of
Purchase. I type ‘60 kgs’.
• Quantity (Billed) – Type Billing Quantity value which we will be making Payment for
that quantity in time of Purchase. I type ‘50 kgs’
• Rate – Type Price of One Quantity item, I type ‘70’
➢ Fill all details of above example like following screenshot.

➢ Practice Exercise for Actual and Billed Quantity Transactions Sales Entry, for you
Ex: 1.Mohan Sharma Sold 70 kgs Wheat from Rajesh Gupta on Rs 40 each Kgs but he paid
Amount for only 50 Kgs Wheat due to low quality of wheat. In that transaction Actual
Quantity of Rice Sold 70 kgs but billing Quantity of Wheat is 50 kgs.
• Party A/c Name – Take any Debtor, Like ‘Rajesh Gupta’
• Purchase ledger – Sale A/c
• Name of Item – Wheat
• Quantity (Actual) – 70 kgs
• Quantity (Billed) – 50 kgs
• Rate – 40
• For Showing Inventory Reports

Step: GOT > Stock- Summary > F5
➢ In Stock summary, Actual & Billed Quantity Transactions Affect reports of Inventory will
shown like this following Screenshot:
➢ Here in this Above Reports Tally Prime display 60 kgs of Basmati Rice stock-Item because
this quantity that we have actually received from Party Ritesh Gupta & Total Value of
Item shown Rs 3500 which is calculate according to Rs 70 each kgs for 50 kgs.
Price Levels & Price List in Tally Prime Class-6
Price levels: - Price levels are classifications of buyers in our business. It is useful when we deals
with different party for selling like Wholesaler, dealer, Retailer, consumer etc. It is also used in
certain festivals for selling in offer like Diwali offer, Holi offer etc. Before use of Price list first you
have to create Price levels.
Price list: - Price list is generally used by organizations and firm which deals in multiple products.
By using of Price list we maintained in various structures of any particular item for different types of
buyers wise, like wholesaler viz., Dealer & retailer viz.

The Price list is structured of any Particular Item based on the classification of buyers and is
referred to at the time of making sales invoice.
Ex: Mr. Rohan sale Sony TV up to 10 Nos in 5000, Above 10 Nos in 4900, and between 20 to 40 Nos
in 4800. So, Price list have to create for Sony TV to manage this type sale.
❖ Process 1: Create Price Levels
*How to Create Price levels in Tally Prime?

Step: GOT > Create > Click on ‘Show More’ > Click on ‘Show Inactive’ > Price levels > Press
two time ‘Enter’ on Price levels
➢ In this screen type name of Price levels, you can create as many price Levels as required
by pressing ‘Enter’ Button.
• Company Price Levels
▪ 1. type “Wholesaler”
▪ 2. Type “Retailer”
➢ Type name like following screenshot:
➢ Practice Exercise for create Price levels in Tally Prime, For You
Company Price Levels
Diwali Offers
Holi Offers
Dealers
*How to Alter Price levels in Tally Prime?

Step: GOT > Alter > Price levels > Enter

➢ After alteration/Changes Press ‘Ctrl+A’
❖ Process 2: Create Stock-Item for setting in Price list.
*How to Create Stock-item in Tally Prime?

Step: GOT > Create > stock-item
➢ After reaching the Above step Type any stock-item name which is used in price list I take
‘Sony TV’ like this following screenshot:
➢ Press ‘Ctrl+A’ for save this screen.
➢ Practice Exercise for create Item for use in Price list

Name Under Category Units
Hp Laptop Laptop 64 bit Pcs.
Samsung Smartphone Smartphone 6 inches Pcs.
❖ Process 3: Create Price List

➢ In Tally, two types of Price list are given
1. Price list (Stock Group) – This is stock group based price list
2. Price list (Stock Category) – This is stock category based Price list.
Note: You can create anyone type based price list by follow below step.
*How to Create Price list (Stock Group) in Tally Prime?

Step: GOT > Create > Price list (Stock Group) > Enter
➢ Fill all details like,

• Stock Group Name – Select your Stock group which is used in Price list, I select ‘TV’

• Price Level – Select your required price levels from list which you have already
create, I select ‘Wholesaler’.
• Applicable from – The date from which the price list is start use. Let’s choose
Applicable date 01-04-2020.
➢ Press ‘Ctrl+A’ for save & Forward.

➢ After Pressing ‘Ctrl+A’ screen will shown of Price list like this following screenshot:
➢ In Price list screen fill details like,

• Particulars – In this field select you’re Stock-Item which you create under selected
stock group, like I select “Sony TV”.
➢ After selecting item fill all other details for Prepare Price list by using this following table:
Quantities (From) Quantities (Less than) Rate Disc % (if any)

5 Pcs 5000 1%
5 Pcs 10 Pcs 4900 0.5%
10 Pcs 20 Pcs 4800
20 Pcs 4800 2%
➢ Fill all details in Price list screen by using above example, like following screenshot:
➢ Press ‘Ctrl+A’ or ‘Enter’ for save this screen.
Note: You can also create more Price list for Different item under same group in
Same screen of Price list.

➢ Practice exercise for create Price list (Stock Category) Based, for you.
Step: GOT > Create > Price list (Stock Category) > Enter
Stock Category : 24 inches
Price Level : Retailer
Applicable From : 01/04/2020
Particulars Sony TV
Quantities (From) Quantities (Less than) Rate Disc % (if any)
5 Pcs 6000 1%
5 Pcs 10 Pcs 5900 0.5%
10 Pcs 30 Pcs 5800 1%
30 Pcs 5800 2%
*How to Alter Price list in Tally Prime?

Step: GOT > Alter > Price list (Stock Group)/Price list (Stock Category) > Enter
➢ After alteration/Changes Press ‘Ctrl+A’
❖ Process 4: Use Price Level & Price List in Sales Invoice
•Enable Discount Column in Sales Invoice

Step: GOT > F11
➢ Enable Discount Column like following screenshot:
➢ Press “Ctrl+A’ for save this screen.
*How to Use Price level & Price list in Sales Invoice in Tally Prime?
➢ After follow above step fill all details like,
• Date – Type sales invoice issue date (which is equal or greater than Applicable from
in Price list), I type ‘01/04/2020’.
• Party A/c Name – Select any Debtor, I take “ Ritesh Mishra”
• Price Level – Select your created Price level in above example, I select “Wholesaler”
• Sales Ledger – Select ‘Sales A/c’
• Name of Item – Select Stock-Item which is used in Price list in above example. I
select “Sony TV”.
• Locations – Select you Godown name, I select “Sasaram Location”
• Quantity – Type Number of Quantity of Stock-Item for selling, I type “20”
• Rate – Auto fill according Quantity
• Disc % - Auto fill according Quantity
• Amount - Auto fill according Quantity
➢ Fill all Details in above Example like following screenshot:

➢ Press Ctrl+A to save
➢ Practice Exercise for using Price Level & Price List in Tally Prime, for You
• Date – 02/04/2020
• Party A/c Name – Rajesh Mishra
• Price Level – Retailer
• Sales Ledger – Sales A/c
• Name of Item - Sony TV
• Locations – Sasaram Godown
• Quantity – 15
• Rate – Auto fill according Quantity
• Disc % - Auto fill according Quantity
• Amount - Auto fill according Quantity
Point of Sale (POS) in Tally Prime Class-7
Point of Sale (POS): - Point of sale is the terminal where a sale transaction is completed,
you might have noticed point of sale terminals in shopping malls, electronic show room the
cashier calculate the total amount due by the customer, prepare invoice and accept
payment via various payment methods like, cheque, Debit card, Credit card, Gift Vouchers.
Ex: Mr. Suraj purchased T-shirt in Rs 500. He pays bill due via Rs 200 by debit card, Rs 100
by credit card, Rs 100 by Gift voucher and remains balance Rs 100 by cash.

❖ Process 1: Creation of Point of Sale (POS)
*How to Create Point of Sale Voucher Type in Tally Prime?

Step: GOT > Create > Voucher Type > Enter
• Name – Type ‘POS INVOICE’.
• Select type of voucher type – Select ‘Sales’.
• Method of voucher numbering – Select ‘Automatic’.
• Print voucher after saving – Set to ‘Yes’.
• Use for POS invoicing – Set to ‘Yes’.
• Message to Print (1) – Type any message 1 in Invoice for Customer, like “Thank You for
Visiting My Shop”.
• Message to Print (2) – Type Any Message 2 in Invoice for Customer, like “Visit Again”
• Default title to print – Type Your Invoice Title for printing in Invoice, like I type “POS
Invoice”.
• Set/alter declaration – You can declare any Information about you shop by typing here
or Leave as Default, I leave as default it. That means Set to ‘Yes’ & Press Enter.
Note: Other details leave it as default setting in POS Invoice Voucher
➢ Fill all Details in above Example like following screenshot:
❖ Process 2: Use of Point of Sale (POS) Invoice
Note 1: Point of Sales Invoice are two types. First is ‘Single mode Pymt’ and second
‘Multi mode Pymt’.

*How to Use Point of Sale (Single Mode Pymt) Voucher Type in Tally Prime?
Step: GOT > Voucher > F8 > Select “POS INVOICE” > Press ‘Alt+I’ or Click on ‘Single Mode
Pymt’ option on right side of Column bar
➢ After follow above step screen of POS Invoice Voucher will be shown like this following
screenshot:

• Party A/c Name – Select Any Debtor like, I select ‘Suraj Kumar’
• Sales Ledger – Select ‘Sale A/c’ Ledger
• Name of Item – Select any Item like, I select ‘T-Shirt’
• Quantity – Type number of Quantity of Item I type ‘5 Pcs.’
• Rate – Type Rate of One Item like, I type ‘100’
➢ After filling Above details Press Enter 3 times then fill following payment mode
• Cash - In ‘Single Mode Pymt’ voucher, you can receive cash only, select the ‘Cash’ ledger
• Cash tendered - Enter the exact cash tendered, and the balance will be automatically
calculated and displayed. Like I enter ‘500’
➢ After Filling all Above Details in Single Mode Pymt POS Voucher, Screen will show Like
this screenshot:

*How to Use Point of Sale (Multi Mode Pymt) Voucher Type in Tally Prime?
Note: In POS Invoice with multi mode payment system is useful when customers are paying
the bill using multiple payment options like Credit Card, Debit Card, Gift Vouchers, Cash and
Cheque Payment.
Step: GOT > Voucher > F8 > Select “POS INVOICE” > Press ‘Alt+I’ or Click on ‘Multi Mode
➢ After follow above step screen of POS Invoice Voucher will be shown like this following
screenshot:
Example 1: Mr. Suraj purchased T-shirt in Rs 500. He pays bill due via Rs 100 by Gift
Voucher, Rs 100 by credit card, Rs 200 by Cheque and remains balance Rs 100 by cash.
➢ After follow above step fill all details by using above Example like,
• Party A/c Name – Select Any Debtor like, I select ‘Suraj Kumar’
• Sales Ledger – Select ‘Sale A/c’ Ledger
• Name of Item – Select any Item like, I select ‘T-Shirt’
• Quantity – Type number of Quantity of Item I type ‘5 Pcs.’
• Rate – Type Rate of One Item like, I type ‘100’
➢ After filling Above details Press Enter 3 times then fill following payment mode
• Gift Voucher - Some big stores offer gift vouchers, anyone can pay and get gift coupons.
While they shop to the same store, they can use gift vouchers instead of paying cash.
Create/Select “Gift voucher” Ledger Under Sundry Creditor group By Pressing ‘Alt+C’ and
Type its Amount like, I type ‘100’.
• Credit/debit card – If Customer pays money via debit/credit card then In Credit card/
debit card section select the bank account in which money is to be transmitted from
customer card. Then enter amount & card number of Customer. Like, I Select ‘SBI Bank
A/c’ and type amount Rs 100 & type Card Number “5445 7445 4444” of Debit/Credit
card.
• Cheque - If Customer pays money via Cheque then in the cheque field, select the Bank
Ledger in which cheque is going to be deposited. Also enter cheque Amounts, Name of
Bank of Customer’s Cheque & cheque number. Like I Select ‘SBI Bank A/c’ and type

amount of Cheque Rs 200, Type Name of Bank of Customer’s Cheque ‘PNB Bank’ &
cheque No: 458754.
• Cash - In ‘Single Mode Pymt’ voucher, you can receive cash only, select the ‘Cash’ ledger
• Cash tendered - Enter the exact cash tendered, and the balance will be automatically
calculated and displayed. Like I enter ‘100’
➢ After Filling all Above Details in Single Mode Pymt POS Voucher, Screen will show Like
this screenshot:
➢ Press “Ctrl+A’ for Print this POS invoice.
➢ Practice Exercise for Use ‘Multi Mode Pymt’ POS Invoice in Tally Prime, for You
Example 1: Mr. Rakesh purchased Jeans in Rs 1000. He pays bill due via Rs 300 by Gift
Voucher, Rs 300 by credit card, Rs 300 by Cheque and remains balance Rs 100 by cash.
Step: GOT > Voucher > F8 > Select “POS INVOICE” > Press ‘Alt+I’ or Click on ‘Multi Mode
• Party A/c Name – Rakesh Kumar
• Sales Ledger – Sale A/c
• Name of Item – Jeans
• Rate – 200
• Gift Voucher – Gift Voucher, and type amount Rs 300
• Credit/debit card – Select ‘SBI Bank A/c’ and type amount Rs 300 & type Card Number
“5445 7445 4333” of Debit/Credit card.
• Cheque - Select ‘SBI Bank A/c’ and type amount of Cheque Rs 300, Type Name of Bank of
Customer’s Cheque ‘PNB Bank’ & cheque No: 458984.

• Cash - Cash
• Cash tendered - 100
Reorder Levels in Tally Prime Class-8
Reorder Levels: - Reorder Level is an Advance Inventory feature of Tally Prime. It is use to warn
our stock as minimum quantity level. When our present stock cross the minimum quantity then
setting of reorder quantity is warn us to make a purchase order of particular items to maintain our
Inventory at all times.
Tally Prime provides set to reorder level details for any stock item. We can define
reorder levels as well as minimum order quantity for stock item based on the consumption pattern
and as per requirements for specific period (e.g. Days, Weeks, Months, Years). Tally Prime also
provides us information on stock items, whose Quantity have gone below specified reorder levels.
Ex: Mr. Rajesh Mishra wants to purchase 50 Pcs T-shirts. So, he came in our Shop and Demand to us
for 50 T-shirts but in our stock Number of T-shirts available 40 Pcs. In this case Out of Stock condition
appears in Our Business. For solution of this out of Stock condition we must be set reorder quantity
of T-shirts.
Note 1: we can Set Reorder levels in Tally Prime by two ways, first is by ‘Simple Mode’ & second by
‘Advance Mode’
Note 2: Tally Prime Provides us to set reorder levels of our stock according to Stock Item wise, Stock
Group wise and Stock Category wise. You can use anyone types.
• Process 1: Set Reorder Levels – Simple Mode
*How to set Reorder levels (Simple Mode) according to Stock-item wise in Tally
Prime?
Step: GOT > Alter > Reorder level (Stock item) > Select any ‘Stock-Item’ & Press Enter> Press
Alt+S or Click on ‘Simple Reorder’ & Alt+V or Click on ‘Simple Min Qty’ on right side of
column bar.

➢ After follow above step screen of Simple Reorder levels will be shown like this following
screenshot:

Reorder Quantity – Type number of quantity as limit of Minimum quantity. Like, I
type ’20 Pcs.’’
• Minimum order Quantity – Type Number of quantity which you Order to be placed
after stock item reaches a minimum quantity. Like, I type ’25 Pcs.’
➢ After Filling all Above Details in Simple Reorder levels screen , Screen will show Like this
screenshot:
Note: You can also set Reorder levels according to stock group & Stock Category
wise. By following same above step.
• Process 2: Sale Nike T-shirts for Showing reports

➢ Pass Sale voucher Entry as Normal way Like Following screenshot
• Process 3: Show Reorder Status Reports
Note: For Show reorder Status in Tally Prime, First of all Purchase order has
to be activated.
*How to Activate Purchase Order in Tally Prime?
Step: GOT > Voucher >Press shortcut ‘F10’ > click on “Show Inactive” option >
Select ‘Purchase Order’ > Press Two times ‘Enter’ button on Purchase Order
*How to see Reorder Status Reports in Tally Prime?

Step: GOT > Display More Reports > Statement of Inventory > Reorder Status >
Select ‘Stock Group/Stock Category’ > Select Any Reorder ‘Stock Group/Category’ &
Press Enter > Press shortcut ‘F8’ for Reorder only
➢ After follow above step screen of Reorder Status will be shown like this following
screenshot:
➢ In this Reorder Status Screen you can see “Order to be Placed” Column Number of
Quantity shown “25 Pcs”. It tells us that we should be Purchase Order to Placed by
Quantity 25 Pcs of Nike T-Shirt.

➢ Process 4: Purchase Order Entry
*How to Pass Purchase Order voucher Entry in Tally Prime?

Step: GOT > Voucher >Ctrl+F9
➢ In Purchase Order voucher screen, Pass Purchase order entry of Nike T-shirts 25 Pcs as
normal way like following screenshot:
• Process 1: Set Reorder Levels – Advance Mode
*How to set Reorder levels (Advance Mode) according to Stock-item wise in Tally
Prime?
Step: GOT > Alter > Reorder level (Stock item) > Select any ‘Stock-Item’ & Press Enter> Press
Alt+S or Click on ‘Adv Reorder’ & Alt+V or Click on ‘Adv Min Qty’ on right side of column bar.
➢ After follow above step screen of Advance Reorder levels will be shown like this


• Reorder Quantity – Type number of quantity as limit of Minimum quantity. Like, I
type ’20 Pcs.’’
• Period – Type Period like days, weeks, months or Years. Tally calculates Reorder
quantity according to consumption of days, months, weeks or Years. Like I type 5-
Days
• Criteria – In this section two criteria are available Higher & Lower. Select higher for
right calculation reorder level.
• Minimum order Quantity – Type Number of quantity which you Order to be placed
after stock item reaches a minimum quantity. Like, I type ’25 Pcs.’
• Period – Type Period like days, weeks, months or Years. Tally calculates Minimum
order quantity according to consumption of days, months, weeks or Years. Like I
type 5- Days
• Criteria – In this section two criteria are available Higher & Lower. Select higher for
right calculation reorder level.
➢ After Filling all Above Details in Advance Reorder levels screen , Screen will show Like
this screenshot:
Note: You can also set Reorder levels according to stock group & Stock Category
wise. By following same above step.
➢ Practice Exercise for Setting Reorder Level (Advance Mode), for You
Name of Item Pavilion Jeans
Reorder Period Criteria Minimum Period Criteria
Quantity Order Qty
50 2 weeks Higher 40 2 Months Higher
• Process 2: Sale Nike T-shirts as 5 Times for Showing Reorder Reports

➢ Pass Sale voucher Entry as Normal way Like Following screenshot
➢ Sale 5 times Nike T-shirt Like following screenshot:
• Process 3: Show Reorder Status Reports
Note: For Show reorder Status in Tally Prime, First of all Purchase order has
to be activated.
*How to Activate Purchase Order in Tally Prime?
Step: GOT > Voucher >Press shortcut ‘F10’ > click on “Show Inactive” option >
Select ‘Purchase Order’ > Press Two times ‘Enter’ button on Purchase Order
*How to see Reorder Status Reports in Tally Prime?

Step: GOT > Display More Reports > Statement of Inventory > Reorder Status >
Select ‘Stock Group/Stock Category’ > Select Any Reorder ‘Stock Group/Category’ &
Press Enter > Press shortcut ‘F8’ for Reorder only
➢ After follow above step screen of Reorder Status will be shown like this following
screenshot:

➢ In this Reorder Status Screen you can see “Order to be placed” Column Number of
Quantity shown “86 Pcs” which is Calculate according to Total Consumption or Sale Nike
T-Shirts in Last 5 days. It tells us that we should be Purchase Order to Placed by Quantity
86 Pcs of Nike T-Shirt.
➢ Process 4: Purchase Order Entry
*How to Pass Purchase Order voucher Entry in Tally Prime?

Step: GOT > Voucher >Ctrl+F9
➢ In Purchase Order voucher screen, Pass Purchase order entry of Nike T-shirts 86 Pcs as
normal way like following screenshot:
➢ After make Purchase Order entry reorder status screen look like this following
screenshot:
Step: GOT > Display More Reports > Statement of Inventory > Reorder Status > Select
‘Stock Group > Select Any Reorder ‘Stock Group & Press Enter > Press shortcut ‘F8’ for
Reorder only
➢ In this Above Screenshot, You can see ‘Order to be Placed’ Column is Empty, Because We
Have ordered already.

Tally Prime GST Course
Goods & Services Tax (GST) in Tally Prime
Chapter-4: GST in Tally Prime

Q. What is GST .................................................................................................................................... 167
*Some important points in GST .......................................................................................................... 167
Type of GST ......................................................................................................................................... 167
Tax Slab Rates under GST for Goods & Services ................................................................................. 169
Types of Dealer Under GST in Tally Prime .......................................................................................... 170
Types of Goods under GST .................................................................................................................. 172
Regular Dealer Accounting under GST in Tally Prime Class-1 ............................................................. 173
*How to Activate/Enable GST for Regular dealer in Tally Prime? .................................................. 173
*How to Create GST Tax ledger in Tally Prime? .............................................................................. 176
*How to Create Supplier Ledger under GST in Tally Prime?........................................................... 177
*How to Create Customer Ledger under GST in Tally Prime? ........................................................ 181
*How to Create Sales Ledger under GST in Tally Prime? ................................................................ 186
*How to Create Purchase Ledger under GST in Tally Prime? ......................................................... 187
*How to Create Taxable Goods under GST in Tally Prime? ............................................................ 188
*Basic Purchase Entry under GST for Regular dealer. .................................................................... 190
*Basic Sales Entry under GST for Regular dealer. ........................................................................... 192
B2C (Business to Consumer) –Large Entry Under GST in Tally Prime ............................................. 195
Compensation Cess Entry under GST.............................................................................................. 198
Nil Rated Item Entry in Tally Prime under GST ............................................................................... 200
Exempt Item Entry in Tally Prime under GST .................................................................................. 203
Create Non-GST Goods in Tally Prime............................................................................................. 205
Calculation of GST Based on Slab Rate of Item ................................................................................... 207
Reverse Charge Mechanism (RCM) under GST in Tally Prime ........................................................ 210
1.Purchase from Un-registered dealer Entry in Tally Prime ....................................................... 211
2.Purchase RCM Goods under GST Entry in Tally Prime ............................................................. 216
3.Imports of Goods under GST Entry in Tally Prime ................................................................... 221
GST Classification in Tally Prime ..................................................................................................... 228
Discount Entry in Tally Prime .......................................................................................................... 232
Export Entry in Tally Prime.............................................................................................................. 233

*Entry of Export Sale with LUT/Bond in Tally Prime ................................................................... 234

*Entry of Export Taxable Sale without LUT/Bond in Tally Prime ................................................ 237
Sale to SEZ Entry in Tally Prime ....................................................................................................... 241
*Entry of Sale to SEZ with LUT/Bond in Tally Prime ................................................................... 241
*Entry of Taxable Sale to SEZ without LUT/Bond in Tally Prime ................................................ 244
Supply to Deemed Exports Entry in Tally Prime ............................................................................. 246
• Supplies notified as Deemed Exports under GST .................................................................... 246
Entry of Services under GST in Tally Prime ..................................................................................... 250
*How to Create Taxable Services under GST in Tally Prime? ......................................................... 250
*Basic Purchase Services Entry under GST for Regular dealer. ...................................................... 252
*Basic Sales Services Entry under GST for Regular dealer. ............................................................. 254
GST on Advance Receipt in Tally Prime .......................................................................................... 256
GST on Advance Payment in Tally Prime ........................................................................................ 262
2. Entry for Advance Payment for Purchase certain Goods or Service covered in RCM under
GST in Tally Prime ....................................................................................................................... 265
3. Entry for Advance Payment for Imports Goods or Service from other Country under GST in
Tally Prime................................................................................................................................... 267
Composition Dealer Accounting under GST in Tally Prime Class-2..................................................... 269
*How to Activate/Enable GST for composition dealer in Tally Prime?........................................... 269
*How to Create GST Expense ledger in Tally Prime? ...................................................................... 271
*Composition dealer Purchase Accounting in Tally Prime? ........................................................... 273
*Composition dealer Sales Accounting in Tally Prime? .................................................................. 277
*How to See GST CMP-08 Reports for sales in Tally Prime? .......................................................... 279

Q. What is GST
GST: - GST is an indirect federal sales tax that is applied to the cost of certain goods and services.
The business adds the GST to price of products pays the sale price plus GST. The GST portion is
collected by the business or seller and forwarded to the govt. it is also referred to as “VAT” is some
countries GST provides revenue for the govt.
GST means a single tax rate is applied throughout

the country. A country with a unified GST platforms merges central taxes (e.g. – CST, excise duty,
services tax) with state-level taxes (e.g. - Entertainment tax, entry tax, transfer tax, SIN tax, Luxury
tax) collects them as one single tax in single rate.
Purpose of GST: - The main objective of incorporating the GST is to eliminate tax on tax and double
taxation by helps of GST. India makes co-operative & undivided market to make economy stronger
and powerful.
*Some important points in GST

1. France is first country to implement GST in 1954.
2. The implement of GST in India on 1-july-2017 by president of India. In presence of finance
minister Arum Jaitely.
3. Petroleum products, Alcoholic Drinks, electricity are out of GST. That is non GST Goods.
4. India’s GST is based on the Canadian model.
5. The first state which implemented the GST was Assam.
6. GST has been implemented under Article 279A of the India Constitution.
7. GST Payable = Output GST – Input GST.
8. Taxes Not Covered by GST Like, Property Tax & Stamp Duty, Electricity Duty, excise Duty on
Alcohol, Basic Custom Duty, petroleum crude, Diesel, Petrol, and ATF & Natural Gas.
Type of GST
Type of GST
Intra-State Inter-State
SGST/UTGST CGST IGST

*1. SGST (State GST):- SGST is levied by state government. It is one of two taxes levied on
every intrastate (within one state) transaction.
It will replace all the existing state taxes including

“VAT” state sales tax, entertainment tax, luxury tax, entry tax etc.
*2. UTGST/UGST (Union territory GST):- UTGST is applicable on the goods and services
supply that takes places in any of the five Union territories of India.
1. Andaman & Nicobar Islands
2. Dadra & Nagar Haveli
3. Chandigarh
4. Lakshadweep
5. Daman & Diu
*3. CGST (Central GST):- CGST is levied by Central government. It is one of two taxes
levied on every intrastate (within one state) transaction.
It will replace all the existing Additional duties of

excise, Central Excise Duty, Excise duty levied under Medicinal & Toiletries Preparation Act,
Additional duties of Excise levied under Textiles & Textile Products, Additional duties of
Customs (CVD & SAD), Service Tax, and Surcharges & Cess etc.
*4. IGST (Integrated GST):- IGST is applicable on interstate (Between two states)
transactions of goods and services as well as on imports. This tax will be collected by the
central government and will further be distributed among the respective states.
* GSTIN/UN Number (GST Identification number or GST Unique number):- GSTIN is a

unique identifiers assigned to a business or person registered under the GST Act.
GSTIN is 15 digit numbers.
Format of GSTIN Number: - 10ABCDE3456K1Z6
• 10:- State code

• ABCDE3456K:- PAN Number of dealer
• 1:- Entity number of the same PAN holder in the state
• Z: - Constant
• 6:- it varies 1 to 9 or A to Z. given by GST portal.

*HSN Code (Harmonized system of Nomenclature code):- HSN is the abbreviation of

harmonized system of nomenclature; It is a system of naming (coding) Products for quick
identification during international trading. This system is developed by World Customs Organization.
These codes are already in use in India for Import & Export of goods and service. In this time
implementing HSN code with GST tax system in India.
HSN/ SAC code is based on you Business turnover

Business with Turnover HSN CODE
Below 1.5 crores Not required
1.5 crores to 5 crores 2 Digit HSN Code
Above 5 crores 4 Digit HSN Code
Business deals with Import and export 8 Digit HSN Code
Business deals with service 5 Digit SAC Code
Note 1: The turnover of the previous year is considered for implementing HSN
code with Invoice.
Note 2: Important Website for find HSN/SAC code for any Goods/Services under GST
1. http://www.cybex.in
2. https://www.indiafilings.com
*SAC Code (services Accounting code):- SAC is the service accounting codes for accounting
services in India. This coding system is developed by Central Board Of Excise and Customs (CBEC)
Which was in use with service tax regime. Now service tax is subsumed by GST but the code is
retained and used in GST for accounting Services. It is varies from 4 to 6 digit.
Tax Slab Rates under GST for Goods & Services
Tax slab rates under GST for Goods & Services are Five Types.
Slab Popular Goods Popular Services

Rates
0% Bread, salt, sanitary napkins, raw hotels and lodges with tariff below ₹ 1,000,
material, eggs, flour, natural honey,
curd, bangle
5% Frozen vegetables, Fertilizers, Spices, Newspaper printing, Takeaway Food, Restaurants
Plastic waste

Slab Popular Goods Popular Services

Rates
0% Bread, salt, sanitary napkins, raw hotels and lodges with tariff below ₹ 1,000,
material, eggs, flour, natural honey,
curd, bangle
12% Ghee, Nuts, Fruits, Pouches, purses Temporary basis IP rights, Building construction for sale
and Handbags
18% Washing Machine, Camera, Shampoo Outdoor Catering, IT services, Telecom services
28% Sunscreen, Motorcycles, Pan Masala Cinema, Food/Drinks/Stay at AC Five Star Hotels
Types of Dealer Under GST in Tally Prime

Type of Dealer
Register Un-register
Regular Composition
Dealer: - A Person whose business is buying and selling of goods & services is known as
dealer in business language.
1. Regular Dealer: - These types of dealer have a registration under GST and they pay
tax to Govt. as monthly. They can Buy and sell Goods & Services all over the nation.
Threshold limits of Rs 20 lakhs in Service turnover or 40L in Products turnover crosses
the GST registration for regular dealer is required.
➢ Regular dealer filed 4 types of return file as monthly and annually basis.
ALL Return file for registered Regular dealer

Types of Return files About Return file Due dates of Frequency
Return
GSTR-1 Outward supplies Return 11th of the next Monthly
month.
GSTR - 2 Inward supplies Return 15th of the next Monthly
month.
GSTR - 3B Inward and Outward supply 20th of the next month Monthly
summary
GSTR - 9 31st December Annual
Annual return for normal following the financial
registered taxpayers year end.

2. Composition Dealer: -GST has introduced composition scheme beneficial for small
businesses. Composition Scheme is a simple and easy scheme under GST for taxpayers.
Small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of
turnover. This scheme can be opt by any taxpayer whose turnover is less than Rs. 1.5
crores. In case of North-Eastern states (Ex: Arunachal Pradesh, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand) and Himachal Pradesh, the limit is
now Rs 75* lacs.
The Composition taxpayer cannot issue a tax invoice
Instead of he must create a “Bill of Supply”. He is not authorized to collect tax from
customer, Instead he has to pay GST tax from their own Pocket. Service Providers
Cannot opts for Composition Scheme but in Budget 2019, Government announced to
have Service providers whose turnover is up to Rs. 50 Lacs can opt for Composition
Scheme.
• Important Points about composition scheme Under GST
1. No Input Tax Credit can be claimed by a Composition dealer

2. The taxpayer has to pay tax at normal rates for transactions under the
Reverse Charge Mechanism (Like Purchase from URD , RCM Goods &
Services)
3. Inter-State sales are not permitted.
4. Few Taxpayers are preferred the Composition Scheme
5. Manufacturer of ice cream, pan masala, or tobacco cannot opt for the
Composition scheme
6. Businesses which supply goods through an e-commerce operator cannot opt
for the Composition scheme
7. A casual taxable person or a non-resident taxable person cannot opt for the
Composition scheme
8. Manufacturer pay GST tax on Taxable and Exempt both supplies.
9. Traders pay GST tax only on Taxable supplies.
Applicable GST Rates for composition scheme

Types of Business CGST SGST Total GST
Manufacturer and Traders of Goods 0.5% 0.5% 1%
Restaurants (Not serving Alcohol) 2.5% 2.5% 5%
Services Providers 3% 3% 6%

ALL Return files for Composition dealer

Types of Return files About Return file Due dates of Return Frequency
th
CMP 08 Details of Outward and 30 of April following the Quarterly
Inward supplies attracting relevant financial year
RCM including imports of
services.
GSTR-4 Details of Outward and 18th of the month Annual
Inward supplies attracting succeeding the end of
RCM including imports of quarter
services
GSTR -9A All details of sale and 31st December following Annual
purchase for composition the financial year end.
scheme.
3. Unregistered Dealer: These types of dealer have no registration under GST and they
do not pay tax to Govt.
Types of Goods under GST
Nil Rated goods: This type of supply attracts a GST of 0%. Input tax credit cannot be claimed on
such supplies. Some items which are nil rated include grains, salt, Jaggery, etc.
Exempted goods: This supply includes item which are used for everyday purposes. Since they are
basic essentials, they do not attract any GST at all. You will not be able to claim any ITC on such
supplies. Some examples include bread, fresh fruits, milk, curd, etc.
Zero-Rated goods: Supplies made overseas and to Special Economic Zones (SEZs) or SEZ
Developers come under the zero-rated supplies. This supply attracts a GST of 0%. For such supplies,
ITC can be claimed.
Non-GST goods: Supplies which don’t come under the scope of the GST are termed as Non-GST
supplies. However, these supplies can attract taxes other than the GST as per the jurisdiction of the
state or the country. Some examples of such supplies include petrol, alcohol, etc.

Regular Dealer Accounting under GST in Tally Prime

Class-1
Note: In company creation time State must be selected right.
*How to Activate/Enable GST for Regular dealer in Tally Prime?

Step: GOT > F11
Activate the Option “Enable Goods & Services Tax (GST)”, Like that Following
Screenshot:
➢ Press ‘Enter’ to filling all GST details

➢ After Pressing Enter GST details of company, screen appear like following
screenshot:
➢ Fill all GST details for Company like,

• State – Select your state from list. By default shows the State name as selected
in the Company Creation screen. This helps in identifying local and interstate
transactions according to the party's state. Like I select “Bihar”.
• Registration Type – Tally provides accounting for both regular and composition
dealers. Like, I Select “Regular”

• Assessee of Other Territory – This option is useful for those business units
located inside the SEZ (Special economic zones) & EEZ (Exclusive economic
zones). Like, I Set to “No”
• GST applicable from – Enter the date you want to start using or Implement GST
in Tally Prime. You cannot use GST transactions before to this date. Like, I enter
“01/04/2020”.
• GSTIN/UIN – Enter your right GSTIN/UIN Number here which is given by GST
department. Tally will warn you in case you entered a wrong GSTIN. This
GSTIN/UIN number printed in your Invoice. Like, I Type “10ASDFG2345K1Z2”
• Periodicity of GSTR-1 – Business with less than 1.5 crores shall file a quarterly
return and business with above 1.5 crores shall file monthly. I select “Monthly”
• Set/Alter GST rate details – You can set GST rate details here. Only if you have a
single tax rate Goods or Services commodity transaction in your business.
➢ If you “Set/Alter GST rate details” set to Yes, Tally will open another screen where
you can enter GST rate details like following screenshot:
➢ Fill details like, description, HSN/SAC code, Type of Goods/services and tax rate of
GST goods. if your business transaction in single Goods/Services GST rate.
I set to “No’ this option
• Enable tax liability on advance receipt – If you receive in advance amounts for
supply of goods for services under GST then enable this option for calculation of GST
tax on Advance receipt. Like I set to “Yes” this option.
• Enable tax liability on reverse charge (Purchase from unregistered dealer) – If you buy
goods or services from Un-registered dealer under GST then enable this option for
Calculate GST on Reverse Charge mechanism (RCM). Like I set to this option “Yes”.
• Enable GST classification – If you classify GST Goods/Services based on its Nature or GST
tax rates for easier to create any stock-item under this classification. For example, you
can create Television as classification. And under which you can create so many branded
television stock item like, Sony TV, Philips TV With same tax rate. Like, I set to option
“Yes”
• Provide LUT/Bond details – If you are a Exporter of Goods/Services to other country and
you have also a LUT/Bond certificate then Enable option for you can Export without
Payment of GST tax.

➢ After set to “Yes” of this option screen will appear like this following screenshot:
Here you can enter your LUT/Bond Number & its Validity period which is given by GST
Portal. Like I set to this Option “No”.
• e-Way Bill applicable – If you are registered person or Transporter of goods and you
transport goods by Road, Rail, air etc whose value exceeds Rs. 50,000 (Single
Invoice/bill/delivery challan) then enable this option to generate e-way bill to your
business. Like I set to option “Yes”.
• Applicable from – Type date from which you apply e-way bill in Tally for your Business.
Like, I apply e-way bill from date “01/04/2020”.
• Threshold limit includes – Here, there are three option available for generate e-way bill,
you can take any option for generate e-way bill. It’s your desire to generate e-way bill on
the basis of Total “Invoice value”, on the basis of total “Taxable and Exempt goods
Value” or on the basis of Total “Taxable goods value”. Like I l choose “Invoice Value”.
• Threshold limit – Type Minimum Limit value to Generate e-way bill for you Business, By
Default its value is 50,000. If you can want change in special case then change by
manual. Like, I leave it by default value 50,000.
• Applicable for Intra-state – If you also apply e-way bill for within a state then Set this
option to “Yes”. Like I set this option “No”.
• Threshold limit – If you enable the option “Applicable for Intra-state” then type
minimum value to generate E-way bill within a State.
• e-Invoicing applicable –If your business turnover exceeds by Rs 100 Crores then you
must be generate e-Invoice. If you want to generate e-invoice by using tally prime then
you set to this option “Yes”. Like I set to option “Yes”
• Applicable from – Type date from which you apply e-invoicing features in Tally Prime.
Like I type “01/01/2021”.
• Bill from place – Enter your location (State) from which you create e-Invoice. Like, I
enter “Bihar”
• Default period for e-Invoice report – This option ask you to how many days you take to
upload e-invoice on GST portal .By default, it is 3 Days. If you want to change it then you
can change by manually. Like, I leave it by default.
• Send e-Way Bill details with e-Invoice – If you want to send e-way bill details in time of
generating e-Invoice by using tally Prime then this option set to “Yes”. Like I set to this
option “Yes”.
➢ After filling all Above detail like I fill then Screen of the GST detail setup look like this

➢ Press “Ctrl+A” or “Enter” for save GST details screen.

➢ Again Press “Ctrl+A” for save Company features screen
*How to Create GST Tax ledger in Tally Prime?

1. Create CGST ledger
➢ For create CGST ledger, fill following details like,
• Name – Enter the name “CGST”
• Under – Select “Duties & Taxes” under group
• Type of duty/tax – Select “GST” under Type of duty/tax
• Tax type – Select “Central Tax” as tax type
➢ After filling all above details, screen of ledger will show like this following screenshot:
➢ Press Ctrl+A for save this screen
2. Create SGST ledger

➢ For create SGST ledger, fill following details like,
• Name – Enter the name “SGST”
• Tax type – Select “State Tax” as tax type

➢ Press “Ctrl+A’ for save this screen
3. Create IGST ledger

➢ For create IGST ledger, fill following details like,
• Name – Enter the name “IGST”
• Tax type – Select “Integrated Tax” as tax type
➢ Press “Ctrl+A’ for save this screen
*How to Create Supplier Ledger under GST in Tally Prime?

1. Create Regular Supplier Dealer ledger
➢ For create Regular Supplier dealer ledger, fill following details like,
• Name –Type name of your Regular supplier dealer like, I type “Suresh Sharma (Reg.)
Supplier”
• Under –Select “Sundry Creditor” under group
• Maintain Balance bill-by-bill – Set to “Yes”
• Default credit period – Type any default credit period or days like I enter “25 days”.

• Check for credit days during voucher entry – Set to “Yes” this option.
• State – Select Supplier state from list. Like I select “Bihar”.
• Registration type – Select Registration type of Supplier. I Like select “Regular”
• GSTIN/UIN – Type GSTIN/UIN number of Supplier like I type “10JHGFD3456K1Z2”.
• Set/Alter GST details - Set to this option “Yes”
➢ After set Yes to this option screen will open in new window like this following
screenshot:
➢ Fill all details of this screen like,

• Registration type – Select Regular
• Assessee of other Territory – Set the option Assessee of Other Territory to “Yes” if the
party is belongs to Exclusive Economic Zone (other territory). I set to “No”.
• Is e-commerce operator – If the supplier is an e-commerce operator then enable this
option. Like I set to this option “No”.
• Consider Party as Deemed Export for Purchase – If the supplier is a Deemed Exporter
then set to option “Yes”. Like I set to this option “No”.
• Party Type – Select type of Party from list like if the supplier is Deemed Export,
Embassy/UN body or SEZ (Special Economic Zone). Then select any one according to
Party type. Like I select “Not Applicable”.
• GSTIN/UIN – Type supplier’s GSTIN/UIN number like I type “10JHGFD3456K1Z2”.
• Is a transporter – If you supplier is a transporter then set to this option “Yes”. Like I set
“No”.
➢ After filling all details screen will show like this following screenshot:
➢ Press Enter or Ctrl+A for save this screen

➢ After filling all Above details Final screen of supplier ledger shown like this following screenshot:

➢ Press Ctrl+A for save this screen.
1. Create Composition Supplier Dealer ledger

➢ For create Composition Supplier dealer ledger, fill following details like,
• Name –Type name of your Regular supplier dealer like, I type “Dhiraj Sharma (Compo) Supplier”
• Registration type – Select Registration type of Supplier. I Like select “Composition”
• GSTIN/UIN – Type GSTIN/UIN number of Supplier like I type “10FGGFD3456K1Z2”.
➢ After set Yes to this option screen will open in new window like this following screenshot:
2.
• Name –Type name of your Regular supplier dealer like, I type “Dhiraj Sharma (Compo) Supplier”
• Registration type – Select Registration type of Supplier. I Like select “Composition”
• GSTIN/UIN – Type GSTIN/UIN number of Supplier like I type “10FGGFD3456K1Z2”.
screenshot:

▪ Registration type – Select Composition
▪ Assessee of other Territory – Set the option Assessee of Other Territory to “Yes”
if the party is belongs to Exclusive Economic Zone (other territory). I set to “No”.
▪ Is e-commerce operator – If the supplier is an e-commerce operator then
enable this option. Like I set to this option “No”.

▪ Consider Party as Deemed Export for Purchase – If the supplier is a Deemed

Exporter then set to option “Yes”. Like I set to this option “No”.
▪ GSTIN/UIN – Type supplier’s GSTIN/UIN number like I type
“10FGGFD3456K1Z2”.
▪ Is a transporter – If you supplier is a transporter then set to this option “Yes”.
Like I set “No”.

➢ After filling all Above details Final screen of supplier ledger shown like this following
screenshot:
3. Create Unregistered Supplier Dealer ledger

➢ For create Un-registered Supplier dealer ledger, fill following details like,
• Name –Type name of your Regular supplier dealer like, I type “Rohit Sharma (URD) Supplier”
• Registration type – Select Registration type of Supplier. I Like select “Unregistered”
screenshot:


▪ Registration type – Select Unregistered
▪ Is a transporter – If you supplier is a transporter then set to this option “Yes”.
Like I set “No”.

screenshot:
➢ Practice Exercise for Create Supplier Ledger under GST in Tally Prime, For You.
Name Under State Registration GSTIN/UIN
Type
Rajesh Gupta Sundry creditor Delhi Regular 07KJHGF2345K1Z2
Sohan Prasad Sundry creditor Bihar Composition 10KJHGF2345K1Z2
Kamal Pandey Sundry creditor Bihar Unregistered No
*How to Create Customer Ledger under GST in Tally Prime?

1. Create Regular Customer Dealer ledger
➢ For create Regular Customer dealer ledger, fill following details like,
• Name –Type name of your Regular Customer dealer like, I type “Dinesh Sharma(Reg.)
Customer”
• Under –Select “Sundry Debtor” under group


• State – Select Customer’s state from list. Like I select “Bihar”.
• Registration type – Select Registration type of Customer. I Like select “Regular”
• GSTIN/UIN – Type GSTIN/UIN number of Customer like I type “10JHGFD8756K1Z2”.
screenshot:

▪ Registration type – Select Regular
▪ Assessee of other Territory – Set the option Assessee of Other Territory to “Yes” if the
▪ Is e-commerce operator – If the Customer is an e-commerce operator then enable this
▪ Consider Party as Deemed Export for Purchase – If the Customer is a Deemed Exporter
▪ Party Type – Select type of Party from list like if the Customer is Deemed Export,
Embassy/UN body or SEZ (Special Economic Zone). Then select any one according to
Party type. Like I select “Not Applicable”.
▪ GSTIN/UIN – Type Customer’s GSTIN/UIN number like I type “10JHGFD8756K1Z2”.
▪ Is a transporter – If the Customer is a transporter then set to this option “Yes”. Like I set
“No”.

screenshot:

2. Create Composition Customer Dealer ledger

➢ For create Composition Customer dealer ledger, fill following details like,
• Name –Type name of your Composition Customer dealer like, I type “Ritesh Kumar (Comp.)
Customer”
• State – Select Customer’s state from list. Like I select “Bihar”.
• Registration type – Select Registration type of Customer. I Like select “Composition”
• GSTIN/UIN – Type GSTIN/UIN number of Customer like I type “10FGGFD8756K1Z2”.
screenshot:

▪ Registration type – Select Composition
▪ Assessee of other Territory – Set the option Assessee of Other Territory to “Yes” if the
▪ Is e-commerce operator – If the Customer is an e-commerce operator then enable this
▪ Consider Party as Deemed Export for Purchase – If the Customer is a Deemed Exporter
▪ GSTIN/UIN – Type Customer’s GSTIN/UIN number like I type “10FGGFD8756K1Z2”.
“No”.


screenshot:
3. Create Unregistered Customer Dealer ledger

➢ For create Unregistered Customer dealer ledger, fill following details like,
• Name –Type name of your Unregistered Customer dealer like, I type “Raj Kumar (URD)
Customer”
• State – Select Customer’s state from list. Like I select “Delhi”.
• Registration type – Select Registration type of Customer. I Like select “Unregistered”
screenshot:

▪ Registration type – Select Unregistered

“No”.

screenshot:
4. Create Consumer ledger

➢ For create Consumer ledger, fill following details like,
• Name –Type name of your Consumer like, I type “Himanshu Consumer”
• State – Select Customer’s state from list. Like I select “Delhi”.
• Registration type – Select Registration type of Customer. I Like select “Consumer”
screenshot:


▪ Registration type – Select Consumer & Press Enter
screenshot:
➢ Practice Exercise for Create Customer Ledger under GST in Tally Prime, For You.
Name Under State Registration GSTIN/UIN
Type
Mukesh Gupta Sundry Debtor Assam Regular 17KJHGF2345K1Z2
Mohan Prasad Sundry Debtor Bihar Composition 10KJHGF2345K1Z2
Ratan Pandey Sundry Debtor Bihar Unregistered No
Satish Kumar Sundry Debtor Jharkhand Consumer No
*How to Create Sales Ledger under GST in Tally Prime?

➢ For create Sales Ledger, fill following details like,
• Name – Enter ‘Sales A/c’
• Under – Select ‘Sales Account’ under group
• Inventory values are affected – If you Maintain Inventory with sales then set to this option
‘Yes’. Like I set to this option ‘Yes’.
• Is GST applicable – Set to this option ‘Yes’ for using in sales under GST.
• Set/Alter GST details – If you want to apply GST tax rate here also then set to yes this option
but we already set GST tax rate on item the this is not useful so we Not enable this option.
Like I set to this option ‘No’.
• Type of Supply – Select supply type in time of selling. I select ‘Goods’
➢ After filling all above option then screen of sale ledger will shown like this following
screenshot:

Note: If Inventory option is not shown in sale ledger screen then press F12 and Enable this Option
“Use Inventory Allocation for Ledgers” –Yes
*How to Create Purchase Ledger under GST in Tally Prime?

➢ For create Purchase Ledger, fill following details like,
• Name – Enter ‘Purchase A/c’
• Under – Select ‘Purchase Account’ under group
• Inventory values are affected – If you Maintain Inventory with sales then set to this option
‘Yes’. Like I set to this option ‘Yes’.
• Is GST applicable – Set to this option ‘Yes’ for using in sales under GST.
• Set/Alter GST details – If you want to apply GST tax rate here also then set to yes this option
but we already set GST tax rate on item the this is not useful so we Not enable this option.
Like I set to this option ‘No’.
• Type of Supply – Select supply type in time of selling. I select ‘Goods’
➢ After filling all above option then screen of Purchase ledger will shown like this
Note: If Inventory option is not shown in Purchase ledger screen then press F12 and Enable this
Option “Use Inventory Allocation for Ledgers” -Yes

*How to Create Taxable Goods under GST in Tally Prime?

➢ For create Taxable goods, fill following details like,
• Name – Type name of taxable goods like I type ‘Dell Laptop’.
• Under – Select under stock group (If you have no stock group then create by pressing
“Alt+C”) like I Select ‘Laptop’.
• Category – Select category (If you have no stock Category then create by pressing “Alt+C”)
like I Select ’64 bit’.
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select ‘Pcs.’
• GST applicable – If you apply GST on this item then Select to option ‘Applicable’
• Set/Alter GST details – If you want to set GST rate on this item then Set to this option ‘Yes’
➢ After Enable Set/alter GST detail option open new screen of GST detail for stock-Item
appear like this screenshot:
➢ Fill all detail like,

• Classification – If you already classify goods according to their natures then select your
classification otherwise leave it Undefined. Like I leave it ‘Undefined’
• Description – Enter the description about stock-item. Like I enter ‘Electronics Instruments’
• HSN/SAC – Type HSN code of Goods. Like I type ‘4551’
• Is Non GST goods – If your goods is Non-GST goods then set to option ‘Yes’. Like I set to this
option ‘No’.
• Calculation type – In this section there are two types of calculation type
▪ On value – this option calculate GST tax according to Total value of total Stock –
Item.
▪ On Item Rate – This option calculate GST tax on the basis of rate of one item.
This option discusses incoming classes.
➢ I select ‘On value’ in calculation type
• Taxability – See you goods is Taxable or Nil-Rate or Exempt, select any one option from
them. Like I select ‘Taxable’
• Is reverse charge applicable – If your goods are RCM goods then set to this option ‘Yes’. This
option discusses incoming classes. I set to this option ‘No’.

• Is Ineligible for Input credit – If ITC cannot claimed on this Item then set to this option ‘Yes’.
I select ‘No’.
• Integrated tax – Type GST tax rate for the Item. Like I type ‘18%’.
• Central tax – Auto fill
• State tax – Auto fill
• Cess – If apply Cess on the Item then type rate of Cess for this item. Like I leave it empty.
➢ After filling all above details then screen of GST detail of stock item shown like this
screenshot:
➢ Press ‘Enter’ or ‘Ctrl+A’ to save GST details for stock item.

• Type of Supply – Select ‘Goods’
➢ After filling all Above option final screen shown like this following screenshot:
➢ Practice Exercise for create Taxable Item. For You

Name Under Category Units GST Set/Alter Type of
applicable GST Supply
details
Hp Laptop Laptop 32 bit Pcs Applicable Yes (18%) Goods
Sony TV Television 24 inches Pcs Applicable Yes (12%) Goods
Samsung Smartphone 6 inches Pcs Applicable Yes (18%) Goods
Smartphone

*Basic Purchase Entry under GST for Regular dealer.
1. Condition 1: Purchase Goods from Regular Dealer Entry

➢ For entry in Purchase voucher under GST fill all details like’
• Supplier invoice No: Type Supplier Invoice or Bill Number Like I type ‘DK21’
• Date – Type date of Purchase transactions by pressing F2, like I type ‘01/04/2020’
• Party A/c Name – Select your Regular Supplier Like I select “Suresh Sharma (Reg.) Supplier”.
• Purchase Ledger – Select Purchase ledger, like I select ‘Purchase A/c’
• Name of Item – Select Taxable Stock Item like I select ‘Dell Laptop’
• Location – Select the Godown for Store Item. Like I select “Sasaram Godown”.
• Quantity – type number of Dell Laptop Purchase. Like I type ‘10 Pcs.’
• Rate – Type rate of one Dell laptop. Like I type ’20,000’
➢ After filling above details Press 2 times enter from Item column & select GST tax ledger
form list.
Note: Apply GST Tax according Supplier’s State. If Supplier’s state is same (Intra-State) then apply
CGST+SGST both. If Supplier’s state are different (Inter-State) from us then Apply IGST only.
• Select CGST and SGST in Ledger column
➢ After filling all Above details screen of Purchase ledger will shown like this following
screenshot:
➢ Practice exercise for Purchase Goods from Regular Dealer Entry, for you.
• Supplier invoice No: DK25
• Date –02/04/2020
• Party A/c Name – Rajesh Gupta
• Purchase Ledger - Purchase A/c
• Name of Item – Hp Laptop
• Location – Patna Godown
• Rate – 21000
• Tax Ledger – IGST

2. Condition 2: Purchase Goods from Composition Dealer Entry

• Party A/c Name – Select your Composition Supplier Like I select “Dhiraj Sharma (Compo)
Supplier”.
Note: Composition dealer cannot issue tax invoice so entry of purchase from composition dealer will
be without tax.
screenshot:
➢ Practice exercise for Purchase Goods from Composition Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Sohan Prasad
• Rate – 21000
• How to See Purchase GST Reports in Tally Prime.

Step: GOT > Display More Reports > GST Reports > GSTR-2 > Press “Alt+F2” for Change Period

➢ After Follow Above step Screen of GST Purchase reports shown like this following
screenshot:
*Basic Sales Entry under GST for Regular dealer.
1. Condition 1: Sales Goods to Regular Dealer Entry

➢ For entry in Sales voucher under GST fill all details like’
• Reference No: Type Any Number as Reference Like I type ‘DK01’
• Date – Type date of Sale transactions by pressing F2, like I type ‘01/04/2020’
• Party A/c Name – Select your Regular Customer Like I select “Dinesh Sharma (Reg.)
Customer”.
• Sale Ledger – Select Sale ledger, like I select ‘Sale A/c’
form list.
Note: Apply GST Tax according Customer’s State. If Customer’s state is same (Intra-State) then apply
CGST+SGST both. If Customer’s state are different (Inter-State) from us then Apply IGST only.
➢ After filling all Above details screen of Sale ledger will shown like this following
screenshot:

➢ Practice exercise for Sold Goods to Regular Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mukesh Gupta
• Sale Ledger - Sales A/c
• Rate – 21000
2. Condition 2: Sales Goods to Composition Dealer Entry

• Party A/c Name – Select your Composition Customer Like I select “Ritesh Kumar (Comp.)
Customer”.
form list.
screenshot:

➢ Practice exercise for Sold Goods to Composition Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mohan Prasad
• Rate – 21000
• Tax Ledger – CGST+SGST
*How to See Sales GST Reports in Tally Prime?

➢ After Follow Above step Screen of GST Sales reports shown like this following
screenshot when you enter wrong GSTIN Number:

➢ For showing GST sales Reports Press Enter on “Uncertain Transaction” then Press
Enter on “Number of Voucher with Incomplete/Mismatch in Information” then select
your sale Entry which you want show in sales reports And Press Enter on It then Press
“Alt+V” then Press Enter
➢ After Follow Above Process Sales reports shown in GSTR-1 Reports like this Following
screenshot:
➢ You can see 2 transactions in these reports in “B2B Invoice” table.
B2C (Business to Consumer) –Large Entry Under GST in Tally

Prime
B2C Large: When any regular dealer makes supply to consumer exceeds 2.5 lacs and
Inter-state then supply is known as B2C large Invoice.
*How to Pass B2C large entry in Tally Prime?

Step 1: Create Consumer ledger with another state
Name Under State Registration type

Danish Mishra Consumer Sundry debtor Delhi Consumer
Step 2: Pass Entry in Sales voucher Exceeds 2.5 lacs invoice value
➢ Pass entry in sales invoice like following screenshot:

➢ Practice exercise for B2C large Invoice, for you.

• Party A/c Name – Mohan Gupta consumer
• Rate – 50000
• B2C Small: When any regular dealer makes supply to consumer exceeds or below 2.5
lacs and Intra-state then supply is known as B2C small Invoice. And also when any
regular dealer makes supply to consumer below 2.5 lacs and Inter-state then supply is
known as B2C small Invoice.
*How to Pass B2C small entry in Tally Prime?

Step 1: Create Consumer ledger with same state
Name Under State Registration type

Mohan Mishra Consumer Sundry debtor Bihar Consumer
Step 2: Pass Entry in Sales voucher Exceeds/below 2.5 lacs invoice value
➢ Pass entry in sales invoice like following screenshot:

➢ Practice exercise for B2C small Invoice, for you.

• Party A/c Name – Rohan Gupta consumer
• Rate – 50000
*How to See B2C Invoice Reports in Tally Prime?

➢ After Follow Above step Screen of GST B2C Sales Invoice reports shown like this

➢ You can see B2C Small & B2C large Invoice reports in Row no 2 & 3 of table 5A, 5B & 7
tables.
Compensation Cess Entry under GST
• Cess: GST Cess is a compensation Cess levied on certain goods or services provided
compensation to state for losses of revenue due to the GST implementation and other
reasons.
It has been introduced by the central government until July 2022. It is valid for certain
states in India. It applied either inter-state or intra-state by GST registered
businesses.GST Cess applies on certain goods & Services like Pan Masala (60%),
Cigarettes (21%), Tobacco and Tobacco Products (65-71%), Motor vehicle (15-17%),
Aerated water (12%)( etc.
All taxpayers who are engaged in the supply of selected goods or services other
than exporters and composition taxpayers will collect compensation Cess. This will also
include compensation Cess chargeable on certain goods imported to India. In case
compensation Cess is paid on exports, the exporter can claim refund of the same.
Note: Cess is calculated on the basis of Value of total taxable supply and Quantity of
Item.
*How to Pass Sales entry with CESS under GST in Tally Prime?
Step 1 – Create Stock item with apply CESS rate
Name Under Units Is GST applicable Set/Alter GST details Type of

Supply
Pan Masala Primary Pkt. Applicable Set to “Yes” then enter rate Goods
Integrated tax -28%
CESS – 60%
➢ Apply CESS rate in Set/Alter GST details in Stock item screen like this following screenshot:

Step 2 – Create CESS Ledger under GST
➢ For create CESS ledger, fill following details like,

• Name – Enter the name “CESS”
• Tax type – Select “CESS” as tax type
• Valuation type – In this section there are two method to calculate CESS under GST
▪ Based on Quantity – This method calculate CESS on Number of Quantity of Item.
▪ Based on Value – This method Calculate CESS on Total Value of Taxable Goods or Services.
➢ You can select anyone option from them, I select “Based on Value”.
Step 3 – Create any Customer Ledger

Name Under State Registration Type
Rohan Mishra (Reg.) Sundry debtor Bihar Regular
Step 4 – Pass Sales Entry with addition of CESS

• Party A/c Name – Rohan Mishra (Reg.)
• Name of Item – Pan Masala
• Quantity – 12 Pkt.
• Rate – 1000

• Tax Ledger – CGST+SGST+CESS

➢ Pass entry in sales voucher like following screenshot:
➢ Practice Exercise for Entry in Purchase Voucher with CESS tax, for You
➢ Pass entry in Purchase voucher like Sales Voucher.
• Party A/c Name – Rajesh Mishra (Reg.)
• Name of Item – Tobacco
• Rate – 1000
• Tax Ledger – CGST+SGST+CESS
Nil Rated Item Entry in Tally Prime under GST
*How to Pass Sales entry with Nil-Rated Item under GST in Tally Prime?
Step 1 – Create Nil-Rated Stock item Under GST
➢ For create Nil-Rated goods, fill following details like,
• Name – Type name of Nil-rated goods like I type ‘Salt’.
“Alt+C”) like I Select ‘Fooding Material’.
like I Select ’1 kg Pkt.
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select ‘Pkt.’
• Set/Alter GST details – If you want to set GST taxability on this item then Set to this option
‘Yes’


• Description – Enter the description about stock-item. Like I enter ‘Fooding Materials’
option ‘No’.
Item.
them. Like I select ‘Nil Rated’
Note: If any Option Not Shown in GST details screen then Press F12 & Enable the all Option
screenshot:


➢ Practice Exercise for create Nil Rated Item. For You

Name Under Category Units GST Set/Alter GST Type of
applicable details Supply
Jaggery Sweets A Grade Kgs Applicable Yes (Nil Rated) Goods

Step 2 – Pass Sales Entry with Nil Rated item

• Name of Item – Salt
• Rate – 50
➢ Practice Exercise for Entry in Purchase Voucher with Nil Rated, for You


• Name of Item – Jaggery
• Quantity – 20 kgs.
• Rate – 40
Exempt Item Entry in Tally Prime under GST
*How to Pass Sales entry with Exempted Item under GST in Tally Prime?
Step 1 – Create Exempt Stock item Under GST
➢ For create Exempt goods, fill following details like,
• Name – Type name of Exempt goods like I type ‘Bread’.
“Alt+C”) like I Select ‘Fooding Material’.
like I Select ’A grade’.
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select ‘Pkt.’
‘Yes’

• Description – Enter the description about stock-item. Like I enter ‘Fooding Materials’
option ‘No’.

Item.
them. Like I select ‘Exempt’.
screenshot:

➢ Practice Exercise for create Nil Rated Item. For You

Name Under Category Uni GST Set/Alter GST Type of
ts applicable details Supply
Curd Fooding material 1 Kg Pkt. Pkt. Applicable Yes (Exempt) Goods

Step 2 – Pass Sales Entry with Exempt item



• Name of Item – Bread
• Rate – 100
➢ Practice Exercise for Entry in Purchase Voucher with Exempt, for You
• Name of Item – Curd
• Rate – 120
• Rate – 120
Create Non-GST Goods in Tally Prime
*How to create Non-GST Goods under GST in Tally Prime?

Step – Create Non-GST Stock item Under GST
➢ For create Non-GST goods, fill following details like,
• Name – Type name of Non-GST goods like I type ‘Petrol’.
“Alt+C”) like I Select ‘Fuels’.
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select ‘Ltr’
• Set/Alter GST details – If you want to set GST types of Goods on this item then Set to this
option ‘Yes’


• Description – Enter the description about stock-item. Like I enter ‘Petroleum product’.
option ‘Yes’.
Note : If Non GST goods Option Not Show in GST details screen then Press F12 & Enable the
Option “Set type of goods”.
screenshot:


➢ Practice Exercise for create Non-GST goods. For You

Name Under Units GST Set/Alter GST Type of
Diesel Fuels Ltr. Applicable Yes (Non GST Goods
Goods-Yes)
Alcohol Drinking Bottle Applicable Yes (Non GST Goods
Goods-Yes)
Calculation of GST Based on Slab Rate of Item

Note: By using this method we define percentage of GST on a Particular Price range of item
with/without additional ledger.
➢ For Set GST rate on Price range of any particular Item.
➢ fill following details like,
• Name – Type name of Exempt goods like I type ‘Pavilion Jeans’.
“Alt+C”) like I Select ‘Jeans..
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select ‘Pcs.’
‘Yes’

• Description – Enter the description about stock-item. Like I enter ‘Clothes
option ‘No’.

Item.
➢ I select ‘On Item rate’ in calculation type
➢ After selection of ‘On Item Rate’ a new screen will open in new widow like this
➢ In this screen fill all details for calculation GST rate on Price range on Jeans like,
▪ Consider additional expense/income for slab rate calculation – If you want to
consider the additional expenses or incomes as part of item value, to arrive at
the applicable slab rate, set the option to “Yes”.
▪ Rate (Greater than) – in this column, Enter range amount of Item as greater
than value.
▪ Rate (Up to) – in this column, Enter range amount of Item as up to value.
▪ Tax Type – Select tax type for particular range amount to GST calculate.
▪ Integrated Tax Rate – type GST tax rate for a particular range amount.
➢ Filling all detail like this following screenshot:
Note: If also apply CESS on this item then you can enter CESS rate in CESS section.
➢ Press Enter or Ctrl+A to save this screen.
• Taxability – ‘Taxable’ Auto fill , leave it as it
screenshot:


➢ Practice Exercise for create based on Slab rate Item. For You
Name Under Units GST Set/Alter GST Type of
Sparky jeans Pcs Applicable Yes (on Item Goods
Jeans rate)
Consider additional expense/income for slab rate Yes
calculation
Greater than Up to Tax type Integrated tax
0 700 Taxable 5%
700 1000 taxable 12%
1000 1500 taxable 18%
1500 taxable 28%
Step 2 – Pass Sales Entry with Slab rate Item

• Name of Item – Pavilion Jeans
• Rate – 1500
• Additional Expense & Tax Ledger : Select Packing Charge + CGST+SGST

➢ For show GST tax calculation Press ‘Ctrl+I’ & Press Enter on ‘GST-Tax Analysis’ then
Press “Alt+F”1 for detailed, then screen show all details for GST calculation like this
screenshot:
➢ You can see that calculation GST is on basis of one rate of Item according range set by
us in time of item creation or alteration.
➢ Practice Exercise for Entry in Purchase Voucher with Slab rate item, for You
• Name of Item – Sparky Jeans
• Rate – 1000
• Additional Expense & Tax Ledger – Packing Charge + CGST + SGT
Reverse Charge Mechanism (RCM) under GST in Tally Prime
• Reverse charge Mechanism (RCM) – In reverse charge under GST, the tax liability is
imposed on the receiver of goods or services. In normal case we know the seller,
supplier or services provider is liable to collect tax from buyer and Responsible for the
payment of GST tax to government.
Note 1: The recipient can avail Input Tax Credit of GST amount that is paid under
reverse charge on receipt of goods or services by him.
Note 2: the payment of tax under reverse charge only on cash.

Note 3: The composition scheme registered individuals also come under the reverse
charge, well there will be no credit of RCM is availed.
Note 4 : The reverse charge mechanism is applicable to payments made in advance also.
RCM apply on following three business scenarios:
1. Purchase from Un-registered dealer - If a vendor who is not registered under GST,
supplies goods to a person who is registered under GST, then Reverse Charge would apply
on registered person. This means that the GST will have to be paid directly by the receiver to
the Government instead of the supplier. The registered dealer has to do self-invoicing for
the purchases made.
Only can intra-State sale made by Un-registered dealer & SGST + CGST tax apply on
receiver of goods or services.
2. Supply of certain goods and services specified by CBEC – There are numbers of goods
and services notified in GST on which recipient of goods or services or both shall be liable to
pay tax on reverse charge basis.
List of Goods & Services which is fall under RCM

Goods Services
Cashew nuts, Bidi wrapper leaves (Tendu), Goods transport agency, An insurance agent,
Tobacco leaves, Silk yarn, Raw cotton, A director of a company or a body corporate
3. Imports of Goods or Services – If a vendor is foreigner party then RCM would be apply on
receiver of goods or services under GST.
1.Purchase from Un-registered dealer Entry in Tally

Prime
Process 1: Activate Reverse Charge for Unregistered dealer in Tally Prime

Step: GOT > Alter > GST Details > Enter
➢ In GST Details Screen Enable the option:
Enable “Tax liability on reverse charge (Purchase from Unregistered dealer)” - Yes
➢ After Enabling Press ‘Ctrl+A’ to save this changes
Process 2: Create unregistered dealer ledger in Tally Prime



Nitin Pandey (URD) Sundry Creditor Bihar Unregistered
Process 3: Create Any Taxable Goods in Tally Prime

Name Under Units GST applicable Set/Alter GST Type of Supply

details
Hp Laptop Laptop Pcs Applicable Yes (12%) Goods
Process 4: Purchase from unregistered dealer Entry in Tally Prime

➢ Pass Entry in Purchase voucher without applied GST tax like following screenshot:
➢ For Show tax details of purchase entry, Press Ctrl+I (More Details) > type or select GST
– Tax Analysis to view the tax details. Press Alt+F1 (Detailed) to view the tax liability
under reverse charge. Like this following screenshot:
➢ Press ‘Esc’ Button to return in Purchase voucher

➢ Press ‘Ctrl+A’ to save this Voucher

Note 1: Un-registered cannot do Inter-state supply

Note 2: Un-registered cannot receive RCM supply
Process 5: Show GST tax Liability in GST Reports in Tally Prime

Step: GOT > Alt+G > Type GSTR 3B > Enter
➢ Purchase transaction from Unregistered Show in GSTR-3B reports like this following
screenshot:
➢ Press Enter on ‘URD Purchases’ to view the liability on purchase from unregistered
dealers. Like this following screenshot:
Process 6: Increase Tax Liability & Input Tax Credit Entry in Tally Prime
Step: GOT > Voucher > Journal (F7) > Alt+J
➢ After Pressing ‘Alt+J’ Select all option, like that following screenshot:

➢ After Selection of all options, Pass entry in Journal voucher by Debit and credit the tax
ledgers & enter the GST Rate and Taxable Value for each GST (SGST & CGST) tax ledger
like,
• Dr- CGST – (Rate-6%, Taxable value-100000) – 6000
• Dr- SGST – (Rate-6%, Taxable value-100000) – 6000
• Cr- CGST – (Rate-6%, Taxable value-100000) – 6000
• Cr- SGST – (Rate-6%, Taxable value-100000) – 6000
• Provides GST details – Set to ‘Yes’ & Select ‘Goods’
➢ Fill above details like following screenshot:
Process 7: Payment of GST Tax under RCM Entry in Tally Prime

Step: GOT > Voucher > Payment (F5) > Ctrl+H > Double Entry > Ctrl+F (Autofill)
➢ After Pressing ‘Ctrl+F’ Select all option, like that following screenshot:
➢ After Selection of all options, Pass entry of Payment of GST (SGST+CGST) like,
• Dr- CGST – 6000
• Dr- SGST – 6000

• Cr- Cash – 6000

• Provides GST details –Set to ‘Yes’ & Select like that screenshot:
Note 1: The 14-digit CPIN number is generated before payment of GST and the 17-digit
CIN number is issued after payment of GST. The CPIN is issued at the time generating
GST tax challan by online
Note 2: BRN (Bank Reference Number) & UTR (Unique Transaction Reference Number) gave by
the bank for a payment of GST against a Challan.
Process 8: Show Balance sheet for ITC Amounts in Tally Prime

Step: GOT > Balance sheet > Alt+F1
➢ In Balance sheet you can see your ITC amounts in ‘Duties & Taxes’ row in negative sign
like following screenshot:

2.Purchase RCM Goods under GST Entry in Tally Prime
Process 1: Create Regular dealer ledger in Tally Prime


Sujit Pandey (Reg.) Sundry Creditor Bihar Regular
Process 2: Create Any RCM Goods in Tally Prime

➢ For create RCM goods, fill following details like,
• Name – Type name of RCM goods like I type ‘Silk Yarn’.
“Alt+C”) like I Select ‘RCM goods’.
• Units – select Units (If you have no units then create by pressing “Alt+C”) like I Select
‘Kgs.’
• GST applicable – Select ‘Applicable’
• Set/Alter GST details –Set to this option ‘Yes’

• Description – Enter the description about stock-item. Like I enter ‘RCM Goods’
• Is Non GST goods – If your goods is Non-GST goods then set to option ‘Yes’. Like I set to
this option ‘No’.
• Calculation type –select ‘On value’ in calculation type
• Taxability – Select ‘Taxable’
• Is reverse charge applicable – For RCM goods set to this option ‘Yes’.

• Is Ineligible for Input credit – If ITC cannot claimed on this Item then set to this option
‘Yes’. I select ‘No’.
screenshot:
➢ Press ‘Enter’ or
‘Ctrl+A’ to save GST details for
stock item.
• Type of Supply –
Select ‘Goods’
Process 3: Purchase RCM Goods Entry in Tally Prime

➢ Pass Entry in Purchase voucher without applied GST tax like following screenshot:


Step: GOT > Alt+G > Type GSTR 3B > Enter
➢ Purchase transaction of RCM Goods Show in GSTR-3B reports like this following
screenshot:
➢ Press Enter on ‘Reverse Charge Inward Supplies’ to view the liability on RCM Goods
(Silk Yarn). Like this following screenshot:

Process 5: Increase Tax Liability & Input Tax Credit Entry in Tally Prime
➢ After Selection of all options, Pass entry in Journal voucher by Debit and credit the tax
ledgers & enter the GST Rate and Taxable Value for each GST (SGST & CGST) tax ledger
like,
• Dr- CGST – (Rate-2.5%, Taxable value-100000) – 2500
• Dr- SGST – (Rate-2.5%, Taxable value-100000) – 2500
• Cr- CGST – (Rate-2.5%, Taxable value-100000) – 2500
• Cr- SGST – (Rate-2.5%, Taxable value-100000) – 2500

Process 6: Payment of GST Tax under RCM Entry in Tally Prime

Step: GOT > Voucher > Payment (F5) > Ctrl+H > Double Entry > Ctrl+F (Autofill)
• Dr- CGST – 2500
• Dr- SGST – 2500
• Cr- Cash – 5000


3.Imports of Goods under GST Entry in Tally Prime
Type of Imports under GST

1. Taxable Imports - GST apply on this type of imports in the form IGST under RCM.
ITC can claim on this IGST to government. But we cannot claim ITC on basic customs
duty.
Process 1: Create Foreigner Party ledger in Tally Prime

➢ Fill details Like this Following screenshot:
Process 2: Create ‘Custom duty’ ledger in Tally Prime


Process 3: Create ‘Tax on Imports’ ledger

➢ Fill details like that following screenshot:
Process 4: Create ‘Imports Purchase Taxable’ ledger in Tally Prime

➢ For create Imports Purchase taxable, fill following details like,
• Name – Type name of Imports purchase like I type ‘import Purchase Taxable’.
• Under – Select ‘Purchase Accounts’
➢ After Enable Set/alter GST details option, open a new screen of GST detail for Ledger


• Description – Enter the description about Import. Like I enter ‘Import taxable’
• Nature Of transaction – Select Transaction type from list like, I select “Imports Taxable”.
• Taxability – Autofill ‘Taxable’
• Is reverse charge applicable – For only RCM goods set to this option ‘Yes’. Otherwise
‘No’. Like I set to ‘No’.
➢ After filling all above details then screen of GST detail of Ledger shown like this
screenshot:
➢ Press ‘Enter’ or ‘Ctrl+A’ to save GST details for Ledger.



Name Under Units GST applicable Set/Alter GST details Type of Supply
Dell Laptop Laptop Pcs Applicable Yes (12%) Goods
Process 6: Imports Purchase Goods Entry in Tally Prime

➢ Pass Entry in Purchase voucher without applied GST tax like,
• Date – Type transactions date – 01/04/2020
• Supplier Invoice No – Type supplier invoice no “DKP07”
• Party A/c Name – Select your Foreigner Party “Peterson”
• Purchase ledger – Select “Purchase A/c”
• Name of Item – Select “Dell Laptop”
• Quantity – Type quantity ‘5’
• Rate – Type rate ‘20000’
➢ After typing quantity of Item new screen will appear like this following screenshot:
➢ In this screen type taxable amount for IGST calculation on that value that means in
case of imports of goods Government levied Basic custom duty on imports of goods in
India which is 10% of total value of goods, so we calculate 10% of 100,000 that is
10,000. So, Total taxable value for IGST calculation is 100,000+10,000 = 110000. Type
110000 in this screen like that screenshot:
➢ After typing taxable amounts Press Enter

• Provides GST details – Set to ‘Yes’ fill all option like,
• Bill of Entry No – Type BOE No which is 7 digit numbers like ‘5845465’.
• Date – Type date of BOE like, ‘01/04/2020’
• Port Code – Select that port code from which the importer is importing the goods. Like I
Select “INAGR4” from list.
➢ After filling above details in GST details screen will show like that following screenshot:

Note 1: Bill of Entry (BOE) is document which is filed by importer for importing goods in
our country to Custom department. Basics customs duty, IGST and GST Compensation
Cess must then be paid by the importer to clear the goods through customs.
Note 2: Input tax credit (ITC) would be provided to the importer for IGST and GST
Compensation Cess paid during import.
Note 3: Input tax credit (ITC) would not be provided for the basic customs duty paid on
the import.
➢ After filling all Above details Final Purchase voucher screen will shown like that


Step: GOT > Alt+G > Type ‘GSTR 2’ > Enter
➢ Purchase transaction of Imports of Goods Show in GSTR-2 reports like this following
screenshot:

➢ Press Enter on ‘Imports of Goods’ to view the Tax liability & ITC on Imports of Goods.
Like this following screenshot:
Process 8: Increase Tax Liability Entry in Tally Prime

➢ After Selection of all options, Pass entry in Journal voucher in Dr & Cr like,
• Dr- Tax on imports – 13200
• Cr- IGST – (Rate-12%, Taxable value-110000) – 13200

Process 9: Payment of GST Tax & Customs duty on Imports Entry in Tally Prime
Step: GOT > Voucher > Payment (F5) > Ctrl+H > Double Entry
➢ Pass entry of Payment of GST (IGST) & Customs duty like,
• Dr- IGST – 13200
• Dr- Customs Duty – 10000
➢ After selection ‘Customs duty’ select Imported goods like that screenshot:
• Cr- SBI Bank A/c – 23200

➢ After selection SBI bank fill all bank details in Bank Allocation screen like Inst no, Inst
dates etc.
➢ After filling all above details in Payment voucher, screen of Payment voucher will
shown like this following screenshot:
Process 10: Increase Input Tax Credit (ITC) Entry in Tally Prime
• Dr- IGST (Rate-12%, Taxable Value-110000) – 13200
• Cr- Tax on imports – 13200
• Provides GST details – Set to ‘Yes’ & fill all details like,
• Period from – Type 1st date of month in which you imported goods like I type
’01/04/2020
• To – Type Last date of month in which you imported goods like I type ’30/04/2020
• Bill of entry no – Type bill of entry no which is used in time of purchase entry. Like I type
‘5845465’
• Date – Type date in which you imported goods in his country like I type ‘01/04/2020.
• Port code – Select that Port code which is used in time of purchase entry. Like I Select
‘INAGR4’.
➢ After filling details in GST details window, screen will shown like that following
screenshot:

➢ After Filling all above details in journal voucher final screen look like that following
screenshot:
GST Classification in Tally Prime
GST Classification – GST Classification is a way of recording all the GST details such as GST rate,
HSN, SAC and other details relating to a product or service in such a way that it can be used in future
for a new GST item and GST services creation with one click of a button.
Example – You have 3 Item Dell Laptop, Hp Laptop and Asus Laptop. They will all fall under
a category called Laptop. So, we can classify these types of item in one Classification according its
nature, HSN code etc.

• Implementation of GST classification in Tally Prime
Process 1: Enable GST Classification

Step: GOT > Alter > GST Details
➢ In GST details setting screen enable the option “Enable GST Classification” like following
screenshots:
➢ After Enabling Pressing “Ctrl+A”.
Process 2: Create GST Classification

Step: GOT > Create > Click on “Show More” > Click on “Show Inactive > GST Classification > Press
Double “Enter”
➢ After that a new GST classification creation screen appear like this following screenshot:
➢ If you want to see more details in GST classification creation screen then Press “F12”
then enable all option like that screenshot:
➢ Press Ctrl+A to save configure screen

➢ After enable all option in GST classification configure screen appear like that following
screenshot:

➢ Fill details for create GST classification like,

• Name – Type name of GST classification Goods like I Type HSN “8471” as name.
• Description – Type Description about your goods or Services like I type “Laptop”
• HSN/SAC Code – Type HSN/SAC code of Goods or Services type like I type “8471”.
• Is non GST Goods – If your goods are Non GST then set to “Yes”. Like I set to “No”.
• Nature of Transaction – Select “Not Applicable” it is not necessary.
• Taxability – Select your goods Taxability type I select “Taxable”
• Is reverse charge applicable – If you’re Goods is RCM type then set to this “Yes”. I set to “No”
this.
• Is ineligible for input credit – If your goods type is Ineligible for Input credit then set “Yes”. I
set to this “No”.
• Integrated Tax – Type GST rate for your goods, like I type “18%”
• Central Tax – Autofill
• State Tax – Autofill
• Cess – If also cess applies your goods then type cess rate for your Item. Like I leave it as
empty.
➢ Fill details like Following screenshot:
➢ Press Ctrl+A to save this screen.
Note: You can also create GST classificaton for Services like this above example of GST classification
for Goods.
➢ Pracrtice Exercise for Create GST classification for Services.

Name HSN/SAC Description Nature of Taxability Integrated
Transaction Tax
9954 9954 Construction Not Taxable 12%
services Applicable
Process 3: Use of GST Classification

For Use of GST classification, I create 3 Stock items such as Dell Laptop, Hp Laptop and Asus Laptop
which are fall under same HSN code and rate.
Step: GOT > Create > Stock Item
➢ Fill details for Stock Item creation as normal way like,

• Name – Type name of Item like I type “Dell Laptop”.

• Under – Select “Laptop”.
• Units –Select units “Pcs”
• Is GST applicable – Select “Applicable”.
• Set/Alter GST details – Set to “Yes”
➢ After set to “Yes” set/alter GST details a new screen appear like that following
screenshot;
➢ In this screen you can see the option of Classification. If you want to not type again HSN
code, GST rate, description and other details then select your created classification like I
select “8471” and press enter
• Type of Supply – Select “Goods”
➢ After filling all details in item creation screen. Screen will shown like that following
screenshot:
➢ Press Ctrl+A to save this screen
Note: Create all type of laptop Stock Item under Laptop like above example of item creation by using
GST classification of “8471”.
➢ Practice Exercise for create Services Ledger by using GST Classification

Name Under Is GST Set/Alter GST details Type of
applicable Supply
Construction Indirect Applicable “Yes” and Select Services
Services Expense Classification “9954”

Discount Entry in Tally Prime
Discount – Discount is a reduction in usual or real price of something.
• Implementation of Discount under GST in Tally Prime
Process 1: Create Discount Ledger

➢ In Ledger screen fill details about discount like,
• Name – Type name of your discount type like I Type “Discount Paid”.
• Under – Select “Indirect Expense” for Discount Paid
• Type of Ledger –Select “Discount”.
Note: If “Type of Ledger” Option is not Show in Ledger screen then Press F12 & enable the option
“Select Type of Ledger to auto–calculated value in Invoice mode”.
➢ Press Ctrl+A to save this
➢ Practice exercise for create “Discount Paid” Ledger, for You

Name Under Type of Ledger
Discount received Indirect Income Discount
Process 2: Pass Entry for Give discount to customer

Step: GOT > Voucher > F8 > F12
➢ In sale voucher configuration screen enable the option “Provides Cash/Trade Discount”
like this screenshot:
➢ Press Ctrl+A to return in Sales voucher screen

➢ Fill details for Pass entry in sales voucher with GST and Discount like,
• Party A/c name – Select your customer like I select “Mahesh Customer”.

• Sales Ledger – Select “Sale A/c”

• Name of Item – Select any Item to sale like I select “ Sony TV”
• Quantity – Type number of Item to sale like I type “5”.
• Rate – Type Rate of One Item like I type “10000”.
• Discount – Type Rate or amount for give discount like I type “5%”
• Tax Ledger – Select GST tax Ledger like I select “CGST+SGST”.
• Discount Ledger – Select “Discount Paid” Ledger
✓ You can see GST tax calculated after deduction of Discount from total amount of
Stock Item.
➢ Press Ctrl +A to save this screen.
➢ Practice Exercise for Pass Purchase entry with Discount received and GST tax, for you.
• Party A/c name – Select your customer like I select “Rajesh Supplier”.
• Sales Ledger – Select “Purchase A/c”
• Name of Item – Select any Item to sale like I select “ Sony TV”
• Quantity – Type number of Item to sale like I type “5”.
• Rate – Type Rate of One Item like I type “10000”.
• Discount – Type Rate or amount for give discount like I type “5%”
• Tax Ledger – Select GST tax Ledger like I select “CGST+SGST”.
• Discount Ledger – Select “Discount received” Ledger
Export Entry in Tally Prime

Export – Export means selling of Product or Services from one state or country to other
state or country.
Export is four types
1. Taxable Export – This type of export is taxable under GST. IGST applicable on this export.
GST tax is refundable in case of taxable export. You can claim for ITC on IGST paying in
time of Exports taxable goods. Exports sale to other country considered as Zero rated
supply under GST.
2. Exempt Export – This type of export is exempted under GST. No any of GST applicable on
this export. No ITC claimed.

3. Nil Rated Export – This type of export is nil rated (0%) under GST. No any of GST
applicable on this export. No ITC claimed.
4. Export Under LUT/Bond – This type of export is also exempted under GST. No any of
GST applicable on this export.
LUT/Bond – Exports without the payment of tax can be made only after filing a bond or
letter of undertaking (LUT) as applicable to the exporter. The government of India has
released few notifications regarding the filing of bond and LUT in the case of certain
specified people. Exporters can make the payment of IGST at the time of export and
then claim the refund later but it will block their working capital.
Note 1: The LUT would be valid for 12 months.

Note 2: If the exporter fails to comply with the conditions of LUT, he may be asked to
provide a bond.
*Entry of Export Sale with LUT/Bond in Tally Prime
Process 1: Enable GST LUT/Bond

➢ In GST details setting screen enable the option “Provide LUT/Bond” like following
screenshots:
➢ After enable the “LUT/Bond” option a new screen appear like this following screenshot:
➢ Fill details about LUT/Bond like,

• LUT/Bond No. – Type your LUT/Bond number like I type “5847996958”.
• Validity (From) – Type validation date from like I type “01/04/2020”.
• Validity (To) – Type validation up to date like I type “31/03/2021”.
➢ Fill details like this screenshot:
➢ After filling details press Ctrl+A to save

➢ Again Pressing “Ctrl+A” to save GST details screen

Process 2: Create Foreigner customer ledger in Tally Prime

Process 3: Create ‘Export Sale with LUT/Bond’ ledger in Tally Prime

➢ For create Export Sale with LUT/Bond, fill following details like,
• Name – Type name of Imports purchase like I type ‘Export Sale with LUT/Bond”.
• Under – Select ‘Sales Accounts’

• Description – Enter the description about Import. Like I enter ‘Export Sale with
LUT/Bond’.
• Nature Of transaction – Select Transaction type from list like, I select “Exports
LUT/Bond”.

screenshot:

➢ Press Ctrl+A to save this ledger

Sony TV TV Pcs Applicable Yes (12%) Goods
Process 5: Export Sale Goods Entry with LUT/Bond in Tally Prime

Step: GOT > Voucher > F8> Ctrl+H > Item Invoice
➢ Pass Entry in Sales voucher without applied any GST tax like,
• Party A/c Name – Select your Foreigner customer “Jenny”
• Sales ledger – Select “Export Sale with LUT/Bond”
• Name of Item – Select “Sony TV”
➢ After typing Rate of Item Press Enter
• Shipping Bill No – Type shipping bill No like t type ‘8454655’.

• Date – Type date of Shipping bill no like, ‘01/04/2020’

• Port Code – Select that port code from which the Exporter is exporting the goods. Like I
Note: Before exporting of goods from one country to another country an exporter will
have to submit an application called the ‘shipping bill’. One cannot load the goods unless
the exporter files the shipping bill.
➢ After filling all Above details Final Sale voucher screen will shown like that following
screenshot:
*Entry of Export Taxable Sale without LUT/Bond in Tally Prime

Process 2: Create foreign customer ledger in Tally Prime

Name Under Maintain Balance bill by Country
bill
Jenny Sundry Debtor Yes Germany

Process 3: Create ‘Export Sale Taxable’ ledger in Tally Prime

➢ For create Export Sale taxable, fill following details like,
• Name – Type name of Imports purchase like I type ‘Export Sale taxable”.

• Description – Enter the description about Import. Like I enter ‘Export taxable’
• Nature Of transaction – Select Transaction type from list like, I select “Export Taxable”.
• Taxability – Autofill ‘Taxable’
• Is reverse charge applicable – For only RCM goods set to this option ‘Yes’. Otherwise
‘No’. Like I set to ‘No’.
screenshot:


Note: You can also create Sale ledger of Exports Exempt, Exports Nil Rated just like
Export Taxable

Process 5: Export Taxable Goods Entry in Tally Prime

➢ Pass Entry in Sales voucher with applied IGST tax like,
• Party A/c Name – Select your Foreigner customer “Jenny”
• Sales ledger – Select “Export Sale Taxable A/c”
• Tax Ledger – Select “IGST”.

• Port Code – Select that port code from which the Exporter is exporting the goods. Like I
➢ After filling above details in GST details screen will show like that following screenshot
Note: Before exporting of goods from one country to another country an exporter will
have to submit an application called the ‘shipping bill’. One cannot load the goods unless
the exporter files the shipping bill.
screenshot:
Note: You can also pass Exports entry of Exempted & Nil Rated Goods under GST
without applied any GST tax.
• For Showing GST reports for Export in Tally Prime:

Step: GOT > Display More Reports > GST reports > GSTR-1
➢ GST reports shown for export sale in Export column like following screenshot:

Sale to SEZ Entry in Tally Prime
Special Economic Zone (SEZ): A special economic zone (SEZ) is a dedicated zone wherein
businesses enjoy simpler tax and easier legal compliances. SEZs are located within a country’s
national borders. However, they are treated as a foreign territory for tax purposes. This is why
the supply from and to special economic zones have a little different treatment than the regular
supplies. In simple words, even when SEZs are located in the same country, they are considered
to be located in a foreign territory. SEZs are not considered as a part of India. Based on this it can
be clearly said that under GST, any supply to or by a Special Economic Zone developer or Special
Economic Zone unit is considered to be an Interstate supply and IGST will be applicable.
Note 1: Supply of goods or services or both to a Special Economic Zone developer/unit will be
considered to be a zero-rated supply.
Note 2: We can Supply to SEZ under bond or LUT without payment of IGST and also claim credit
of ITC
Note: We can Supply to SEZ on payment of IGST and claim refund of taxes paid.
*Entry of Sale to SEZ with LUT/Bond in Tally Prime
Process 1: Enable GST LUT/Bond

➢ In GST details setting screen enable the option “Provide LUT/Bond” and fill all details
about LUT/Bond like following screenshots:
➢ After filling details press Ctrl+A to save

➢ Again Pressing “Ctrl+A” to save GST details screen
Process 2: Create SEZ customer ledger in Tally Prime

➢ For create SEZ Regular Customer dealer ledger, fill following details like,
• Name –Type name of SEZ like, I type “M/S. Bharatiya International SEZ Ltd”
• Under –Select “Sundry Debtor”
• State – Select SEZ Customer’s state from list. Like I select “Andhra Pradesh”.
• Registration type – Select Registration type of SEZ Customer. I Like select “Regular”
• GSTIN/UIN – Type GSTIN/UIN number of SEZ Customer like I type “37JHGFD8756K1Z2”.
➢ After set Yes to this option screen will open in new window fill details like this

➢ Press Enter to return in ledger screen

➢ Final Ledger of SEZ will shown like that following screenshot:
➢ Press Ctrl+A to save this ledger screen.
Process 3: Create ‘Sale to SEZ with LUT/Bond’ ledger in Tally Prime

➢ For create Sale to SEZ with LUT/Bond’, fill following details like,
• Name – Type name of Imports purchase like I type ‘Sale to SEZ with LUT/Bond’”.
➢ After Enable Set/alter GST details option, fill GST details for ‘Sale to SEZ with
LUT/Bond’ ledger like following screenshot:
➢ Press Enter or Ctrl+A to return in Sales ledger


Process 5: Sale to SEZ with LUT/Bond entry in Tally Prime

➢ Pass Entry in Sales voucher without applied any GST tax like,
• Party A/c Name – Select SEZ customer “M/S. Bharatiya International SEZ Ltd”
• Sales ledger – Select “Sale to SEZ with LUT/Bond’”
Note: Before Selling of goods to SEZ a Seller will have to submit an application called the
‘shipping bill’. One cannot load the goods unless the Seller files the shipping bill.

screenshot:
*Entry of Taxable Sale to SEZ without LUT/Bond in Tally Prime

Process 2: Create SEZ customer ledger in Tally Prime

Name Under State Registrat GSTIN Set/Alter Party
ion type GST Type
details
Iffco Sundry Andhra Regular 37JHGFD8756K1Z3 Yes SEZ
Kisan SEZ Debtor Pradesh
Process 3: Create ‘Sales to SEZ-Taxable” ledger in Tally Prime

Name Under Is GST Set/Alter Nature of Type Integrated Type

Applicable GST transaction of tax of
details Supply Supply
Sales to Sales Applicable Yes Sales to Goods 12% Goods
SEZ- Account SEZ-
Taxable Taxable
Note: You can also create Sale ledger of “Sales to SEZ- Exempt”, “Sales to SEZ- Nil Rated”
just like Export Taxable.

Process 5: Sales to SEZ- Taxable Goods Entry in Tally Prime

➢ Pass Entry in Sales voucher with applied IGST tax like,
• Party A/c Name – Select your Foreigner customer “Iffco Kisan SEZ”
• Sales ledger – Select “Sales to SEZ- Taxable”
• Tax Ledger – Select “IGST”.
➢ After filling above details in GST details screen will show like that following screenshot
screenshot:
Note: You can also pass Sales to SEZ entry of Exempted & Nil Rated Goods under GST
without applied any GST tax.
• For Showing GST reports for Sales to SEZ in Tally Prime:

Step: GOT > Display More Reports > GST reports > GSTR-1

Supply to Deemed Exports Entry in Tally Prime

Deemed Export: “Deemed Exports” refers to supplies of goods manufactured in India
(and not services) which are notified as deemed exports under Section 147 of the
CGST/SGST Act, 2017. The supplies do not leave India. The payment for such supplies is
received either in Indian rupees or in convertible foreign exchange. Deemed exports
supplies cannot be made under Bond / LUT. The tax must be paid at the time of supply.
Refund of tax paid on such supplies can be claimed by supplier or recipient. Unlike
exports, Deemed export supplies are not zero-rated supplies by default. All deemed
export supplies will be subject to GST at the point of supply.
Deemed Exports are three types according to Types of Taxability of Goods.
1. Deemed Export Taxable – This type of supply is totally taxable under GST and can be
claim for ITC for this supply by supplier or recipient.
2. Deemed Export Exempt – This type of supply is totally exempted under GST and No
one can claim for ITC for this supply.
3. Deemed Export Nil Rated – This type of supply is totally Zero rated under GST and
No one can claim for ITC for this supply.
• Supplies notified as Deemed Exports under GST
1. Supply of goods by the registered person to Export Oriented Unit (EOU)/ Electronic
Hardware Technology Park Unit (EHTP) / Software Technology Park Unit (STP) / Bio-
Technology Park Unit (BTP)
2. Supply of goods by the registered person against Advance Authorization (AA) i.e.
Supplier must be registered under GST and recipient must be an Advance
Authorization holder
3. Supply of capital goods by the registered person against Export Promotion Capital
Goods Authorizations (EPCG)
4. Supply of gold by Bank or Public Sector Undertaking against AA
Process 1: Create EOU customer ledger in Tally Prime

➢ For create EOU Regular Customer ledger, fill following details like,
• Name –Type name of EOU like, I type “Kumar Organic Products Limited”
• Under –Select “Sundry Debtor”
• State – Select SEZ Customer’s state from list. Like I select “Kerala”.
• Registration type – Select Registration type of SEZ Customer. I Like select “Regular”
• GSTIN/UIN – Type GSTIN/UIN number of SEZ Customer like I type “32JHGFD8756K1Z2”.
➢ After set Yes to this option screen will open in new window fill details like this

➢ Press Enter to return in ledger screen

➢ Final Ledger of EOU will shown like that following screenshot:
➢ Press Ctrl+A to save this ledger screen.
Process 2: Create ‘Deemed Export Taxable’ ledger in Tally Prime

➢ For create ‘Deemed Export Taxable’, fill following details like,
• Name – Type name of Imports purchase like I type “Deemed Export Taxable”.
➢ After Enable Set/alter GST details option, fill GST details for ‘Deemed Export Taxable’’
ledger like following screenshot:
➢ Press Enter or Ctrl+A to return in Sales ledger

➢ Practice Exercise to created Deemed Export Exempt and Nil Rated Sale Ledger.
Name Under Inventory Is GST Set/Alter Nature of Type of
value are applicable GST Details Transaction Supply
affected
Deemed Sales Yes Applicable Yes Deemed Goods
Exports Account Exports
Exempt Exempt
Deemed Sales Yes Applicable Yes Deemed Goods
Exports Nil Account Exports Nil
rated Rated

Process 5: Sale to EOU (Deemed export) entry in Tally Prime

➢ Pass Entry in Sales voucher with applied GST tax like,
• Party A/c Name – Select EOU customer “Kumar Organic Products Limited”
• Sales ledger – Select “Deemed Export Taxable’’”
• Tax Ledger – Select GST “IGST”.
➢ After selecting tax ledger Press Enter

Note: Before Selling of goods to EOU a Seller will have to submit an application called
the ‘shipping bill’. One cannot load the goods unless the Seller files the shipping bill.
screenshot:
Note: You can also Pass Sales Entry of Deemed Export Exempt and Deemed Export Nil
Rated like Deemed Export Taxable sales entry in above example.
➢ Practice Exercise for Pass Sales entry of Deemed Export Exempt and Deemed Export nil
rated.
1. Deemed export Exempt sales entry in Tally Prime

➢ Pass Entry in Sales voucher without applied GST tax like,
• Party A/c Name – Select EOU customer “KEN AGRITECH PVT LTD”
• Sales ledger – Select “Deemed Export Exempt’’”
• Name of Item – Select “Petroleum”
• Quantity – Type quantity ‘50Kg’
2. Deemed export nil rated sales entry in Tally Prime

➢ Pass Entry in Sales voucher without applied GST tax like,
• Party A/c Name – Select EOU customer “KEN AGRITECH PVT LTD”
• Sales ledger – Select “Deemed Export nil rated’’”
• Name of Item – Select “Milk”
• Quantity – Type quantity ‘50Kg’
Entry of Services under GST in Tally Prime
*How to Create Taxable Services under GST in Tally Prime?

➢ For create Taxable Services, fill following details like,
• Name – Type name of taxable Services like I type ‘Telecom services.
• Under – Select “Indirect Expense”.
• Is GST applicable – If you apply GST on this service then Select to option ‘Applicable’
• Set/Alter GST details – If you want to set GST rate on this services then Set to this option
‘Yes’
➢ After Enable Set/alter GST detail option open new screen of GST detail for Ledger

• Classification – If you already classify
services according to their HSN then select your classification otherwise leave it Undefined.
Like I leave it ‘Undefined’
• Description – Enter the description about Services. Like I enter ‘Telecom Services’.
• HSN/SAC – Type SAC code of Goods. Like I type ‘8523’
• Is Non GST goods – If your Services is Non-GST goods then set to option ‘Yes’. Like I set to
• Nature of transaction – Select “Not Applicable”.

• Taxability – See you service is Taxable or Nil-Rate or Exempt, select any one option from
them. Like I select ‘Taxable’
• Is reverse charge applicable – If your goods are RCM service then set to this option ‘Yes’.
This option discusses incoming classes. I set to this option ‘No’.
• Is Ineligible for Input credit – If ITC cannot claim on these services then set to this option
• Cess – If apply Cess on the service then type rate of Cess for this item. Like I leave it empty.
screenshot:

• Type of Supply – Select ‘Services’
➢ Practice Exercise for create Taxable service. For You
Name Under Is GST Set/Alter Taxability Integrated Type of

Applicable GST tax Supply
details
IT Services Indirect Applicable Yes Taxable 18% Services
Income
Advertisement Indirect Applicable Yes Taxable 18% Services
Service Expense

*Basic Purchase Services Entry under GST for Regular dealer.
3. Condition 1: Purchase services from Regular Dealer Entry

Step: GOT > Voucher > F9 > Ctrl+H > Accounting Invoice
• Date – Type date of Purchase services by pressing F2, like I type ‘01/04/2020’
• Particular – Select Your Service, like I select “Telecom Services”.
• Rate – Type rate of service. Like I type ’20,000’
➢ After filling above details Press enter & select GST tax ledger form list
Note: Apply GST Tax according Supplier’s State. If Supplier’s state is same (Intra-State) then apply
CGST+SGST both. If Supplier’s state are different (Inter-State) from us then Apply IGST only.
• Select CGST and SGST in Ledger
screenshot:
➢ Press Ctrl+A to Save.
➢ Practice exercise for Purchase service from Regular Dealer Entry, for you.
• Date –02/04/2020
• Particular – Advertisement Services
• Rate – 21000
4. Condition 2: Purchase service from Composition Dealer Entry

Supplier”.
• Particular – Select service like I select “Telecom Service”

• Rate – Type rate of service. Like I type ’20,000’

be without tax.
screenshot:
➢ Press Ctrl+A to Save.
• Date –02/04/2020
• Particular – Advertisement services
• Rate – 21000
• How to See Purchase GST Reports for Services in Tally Prime.

screenshot:

*Basic Sales Services Entry under GST for Regular dealer.
3. Condition 1: Sales Service to Regular Dealer Entry

• Date – Type date of Sales service by pressing F2, like I type ‘01/04/2020’
Customer”.
• Particular – Select services like I select “IT Services”.
• Rate – Type rate of IT Service. Like I type ’50,000’
➢ After filling above details Press enter & select GST tax ledger form list.
screenshot:
➢ Practice exercise for Sold service to Regular Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mukesh Gupta
• Particular – IT service
• Rate – 50000
4. Condition 2: Sales Services to Composition Dealer Entry

Customer”.
• Particular – Select your services like I select “IT Service”.
• Rate – Type rate of Service. Like I type ’50,000’


screenshot:
➢ Practice exercise for Sold Service to Composition Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mohan Prasad
• Particular – IT service
• Rate – 50000
*How to See Sales Service GST Reports in Tally Prime?

screenshot when you enter wrong GSTIN Number:
➢ For showing GST sales Reports Press Enter on “Uncertain Transaction” then Press
Enter on “Number of Voucher with Incomplete/Mismatch in Information” then select
your sale Entry which you want show in sales reports And Press Enter on It then Press
“Alt+V” then Press Enter
➢ After Follow Above Process Sales reports shown in GSTR-1 Reports like this Following
screenshot:

➢ You can see 2 transactions in these reports in “B2B Invoice” table.
GST on Advance Receipt in Tally Prime
Advance Receipt under GST – From date 15th November 2017, if you received an
advance payment before supply of services then you have to pay GST tax on advance
receipt. GST tax has to be paid only for advance receipt against supply of services not for
goods. That’s means for the supply of goods advance received is not subject to GST. The
advance received should be grossed up. This means that advance received is considered
inclusive of GST.
The taxpayer paying advance is not eligible to claim ITC on advance paid.
The taxpayer can claim ITC on advance paid only on receipt of services.
Note 1: The supplier has to issue a receipt voucher to the person paying advance. The
receipt voucher will contain details like amount of advance, the rate of tax applicable,
description of goods or services, etc.
Note 2: GST is not paid on Advance received for supply of Goods.
Note 3: Only regular dealer can claim ITC on advance payment.
*Entry for Advance Receipt for Supply Services under GST in Tally
Prime
Process 1: Enable Tax liability on advance receipt

➢ In GST details setting screen enable the option “Enable tax liability on advance receipts”
like following screenshots:

Process 2: Receipt Advance Payment from customer Entry

Step: GOT > Voucher > F6 > Ctrl+H > Double Entry > Alt+J (Stat Adjustment)
➢ After Pressing “Alt+J” select “Advance Receipt” like this screenshot:
➢ Press Enter to return in receipt voucher:

➢ Pass Entry for advance receipt like,
• Cr – Select Customer Ledger like I select “Dinesh Sharma (Reg.) Customer”
➢ After selection of customer ledger a new screen appear for filling advance receipt
details, like following screenshot:
➢ Fill details about Advance Receipt like,

• Particular – Select Name of item (Goods) or services against advance receipt. By default
Name of Item is display, if you want to select service then Press “Alt+L” and select services.
Like I select “IT Service”.
Note: You can also select Name of Item for advance receipt by same way like services.
• Advance Amount – Type advance amount given by customer with inclusive of GST taxes.
Like I type “23600”
➢ After filling advance amount, tax rate will Auto calculated on advance amount which was
set in time of create services ledger.
➢ After filling all details in advance receipt screen, Screen of advance receipt details shown
like that following screenshot:
➢ After filling advance receipt details Press Enter then select Type of Ref as “Advance”
from list. Like this screenshot:

➢ Press Ctrl+A to return on Receipt voucher screen

• Dr – Select mode of receipt payment cash or bank. Like I select “Cash”.
➢ After filling of above details in receipt voucher screen will be shown like that following
screenshot:
➢ Press Ctrl+A to save Receipt voucher screen

Note: Print this Receipt and give to your customer.
• See affected GST Reports on Receipt Advance for Services in Tally Prime.
Step: GOT > Display More Reports > GST Reports > GSTR-3B > Press “Alt+F2” for Change Period
➢ After Follow Above step Screen of GSTR-3B reports shown like this following
screenshot:
➢ You can see your advance receipt amount shown in column “Amount unadjusted
against supplies”.
Process 3: Create Current Assets Ledger

Name Under Include in assessable value calculation for
Tax on Advance Current Assets Not Applicable
Process 4: Increase Tax Liability for GST on Advance receipt Entry in Tally Prime

• Dr- Tax on Advance – 3600
• Cr- CGST– (Rate-9%, Taxable value-20000) – 1800
• Cr- SGST– (Rate-9%, Taxable value-20000) – 1800
• Provide GST details – Set to “Yes” and Select Customer “Dinesh Sharma (Reg.)
Customer” then Press Ctrl+A to return Journal voucher.
Process 5: Payment of GST Tax on Advance receipt amount Entry in Tally Prime
Step: GOT > Voucher > Payment (F5) > Ctrl+H > Double Entry
• Dr- CGST – 1800
• Dr- SGST – 1800
• Cr- Cash – 3600

Process 5: Pass Sales Voucher Entry to Supply service on advance receipt

• Party A/c Name – Select your Customer Like I select “Dinesh Sharma (Reg.) Customer”.
• Particular – Select your services like I select “IT Service”.
• Rate – Type rate of Service. Like I type ’20,000’
➢ After apply GST tax, select Type of Ref as “Agst Ref” like this screenshot:
➢ After selection Agst Ref select Pending bill Press Enter to return on sales voucher.
screenshot:
➢ Press Ctrl+A to save this sales voucher.

Process 6: Decrease Tax Liability for GST on Advance receipt Entry in Tally Prime
• Dr- CGST– (Rate-9%, Taxable value-20000) – 1800
• Dr- SGST– (Rate-9%, Taxable value-20000) – 1800
• Dr- Tax on Advance – 3600
• Provide GST details – Set to “Yes” and Type Advance Receipt Number and Date like this
screenshot:
➢ After filling details in Advance details screen Press Ctrl+A to return Journal voucher
• See affected GST Reports all adjustment entry in Tally Prime.

➢ After Follow Above step Screen of GSTR-1 reports shown like this following
screenshot:

➢ You can see amount of Advance tax auto deducted from Sales Invoice.
GST on Advance Payment in Tally Prime
Advance Payment under GST – GST tax is applicable on Advance Payment under GST
only for RCM supply. Other than RCM supply GST tax is not levy on advance payment.ITC
can be claim after final bill booking or issuing by supplier.
RCM applicable in three business scenario

1. Registered person purchased goods from Unregistered Dealer.
2. Registered person purchased certain goods which is notified by government under
RCM
3. Registered person Imports Goods or services under GST from other foreign country.
1. Entry for Advance Payment to unregistered dealer for supply of

goods or service under GST in Tally Prime
Process 1: Enable Tax liability on advance receipt and Reverse charge

➢ In GST details setting screen enable the option “Enable tax liability on advance receipts”
& “Enable tax liability on reverse charge” like following screenshots:

Process 2: Paid Advance Payment to Unregistered person Entry

➢ After Pressing “Alt+J” select “Advance payment under reverse charge” like this
screenshot:
➢ Press Enter to return in Payment voucher:

➢ Pass Entry for advance Payment like,
• Cr – Select Unregistered supplier Ledger like I select “Nitin Pandey (URD)”
➢ After selection of URD supplier ledger a new screen appear for filling advance Payment
➢ Fill details about Advance Payment like,

• Particular – Select Name of item (Goods) or services against advance Payment. By default
Like I select item “Hp Laptop”.
Note: You can also select service for advance payment by same way like Name of item.
• Advance Amount – Type advance amount paid to URD supplier with inclusive of GST taxes.
Like I type “20000”
set in time of create Stock Item.
➢ After filling all details in advance payment screen, Screen of advance Payment details
shown like that following screenshot:
➢ After filling advance payment details Press Enter then select Type of Ref as “Advance”

➢ Press Ctrl+A to return on Payment voucher screen

• Dr – Select mode of payment cash or bank. Like I select “Cash”.
➢ After filling of all above details in Payment voucher screen will be shown like that
➢ Press Ctrl+A to save Payment voucher screen
• See affected GST Reports on Paid Advance for Goods in Tally Prime.
screenshot:
➢ You can see your advance paid amount shown in column “Amount unadjusted against
Purchase”.
Note: Next all process after payment of advance to unregistered dealer will same like in
RCM entry for unregistered dealer in previous classes. Follow same process just like in
previous classes.

2. Entry for Advance Payment for Purchase certain Goods or

Service covered in RCM under GST in Tally Prime
Process 1: Advance Payment to registered person for RCM Goods Entry

screenshot:

• Cr – Select registered supplier Ledger like I select “Sujit Pandey (Reg.)
➢ After selection of supplier ledger a new screen appear for filling advance Payment

• Particular – Select Name of item (Goods) or services which is covered under RCM against
advance Payment. By default Name of Item is display, if you want to select service then
Press “Alt+L” and select services. Like I select item “Silk Yarn”.
• Advance Amount – Type advance amount paid to registered supplier with inclusive of GST
taxes. Like I type “20000”


• Dr – Select mode of payment cash or bank. Like I select “Cash”.
• See affected GST Reports on Paid Advance for RCM Goods in Tally Prime.
screenshot:
Purchase”.
Note: Next all process after payment of advance to registered dealer for RCM Goods
will same like in RCM entry for Certain Goods or Services covered under RCM in
previous classes. Follow same process just like in previous classes.

3. Entry for Advance Payment for Imports Goods or Service

from other Country under GST in Tally Prime
Process 1: Advance Payment to Foreign supplier for imports of Goods Entry

screenshot:

• Cr – Select Foreign supplier Ledger like I select “Peterson”
➢ After selection of supplier ledger a new screen appear for filling advance Payment

• Particular – Select Name of item (Goods) or services against advance Payment. By default
Like I select item “Hp Laptop”.
• Advance Amount – Type advance amount paid to foreign supplier with inclusive of GST
taxes. Like I type “20000”


• Dr – Select mode of payment cash or bank. Like I select “SBI Bank A/c”.
• See affected GST Reports on Paid Advance for Imports of Goods in Tally Prime.
screenshot:
Purchase”.
Note: Next all process after payment of advance to foreign Person for supply Goods
will same like in Imports of goods entry in previous classes. Follow same process just
like in previous classes.

Composition Dealer Accounting under GST in Tally

Prime Class-2
Note: In company creation time State must be selected right.
*How to Activate/Enable GST for composition dealer in Tally Prime?

Step: GOT > F11
Activate the Option “Enable Goods & Services Tax (GST)”, Like that Following
Screenshot:
➢ Press ‘Enter’ to filling all GST details

➢ After Pressing Enter GST details of company, screen appear like following screenshot:
➢ Fill all GST details for Company like,

• State – Select your state from list. By default shows the State name as selected in
the Company Creation screen. This helps in identifying local and interstate
transactions according to the party's state. Like I select “Bihar”.
• Registration Type – Tally provides accounting for both regular and composition
dealers. Like, I Select “Composition”.
• Assessee of Other Territory – This option is useful for those business units located
inside the SEZ (Special economic zones) & EEZ (Exclusive economic zones). Like, I Set to
“No”.
• GST applicable from – Enter the date you want to start using or Implement GST in
Tally Prime. You cannot use GST transactions before to this date. Like, I enter
“01/04/2020”.

• GSTIN/UIN – Enter your right GSTIN/UIN Number here which is given by GST
department. Tally will warn you in case you entered a wrong GSTIN. This GSTIN/UIN
number printed in your Invoice. Like, I Type “10LKDFG2345K1Z2”.
• Tax rate for taxable turnover – Type tax rate applied on you. If you are traders or
manufacture then type “1%” and if you are service providers then type “6%”. Like I
type “1%”.
• Basis for tax calculation – Select right one from them. If you are Manufacturer then
select “Taxable value” and if you are Traders or Services providers then select option
“Taxable, Exempt and Nil rated values”. Like I select “Taxable value”.
• Enable tax rate for purchase (Includes purchase under RCM) – If you want to
purchase goods or services from regular dealer and under RCM then set to this option
“Yes”. Like I set to this option “Yes”.
• e-Way Bill applicable – If you are registered person or Transporter of goods and you
transport goods by Road, Rail, air etc whose value exceeds Rs. 50,000 (Single
Invoice/bill/delivery challan) then enable this option to generate e-way bill to your
business. Like I set to option “Yes”.
• Applicable from – Type date from which you apply e-way bill in Tally for your Business.
Like, I apply e-way bill from date “01/04/2020”.
• Threshold limit includes – Here, there are three option available for generate e-way
bill, you can take any option for generate e-way bill. It’s your desire to generate e-way
bill on the basis of Total “Invoice value”, on the basis of total “Taxable and Exempt
goods Value” or on the basis of Total “Taxable goods value”. Like I l choose “Invoice
Value”.
• Threshold limit – Type Minimum Limit value to Generate e-way bill for you Business,
By Default its value is 50,000. If you can want change in special case then change by
manual. Like, I leave it by default value 50,000.
• Applicable for Intra-state – If you also apply e-way bill for within a state then Set this
option to “Yes”. Like I set this option “Yes”.
• Threshold limit – If you enable the option “Applicable for Intra-state” then type
minimum value to generate E-way bill within a State. Leave it by default value
“50000”.

➢ After filling all Above detail like I fill then Screen of the GST detail setup look like this
➢ Press “Ctrl+A” or “Enter” for save GST details screen.

➢ Again Press “Ctrl+A” for save Company features screen
Tax Expense Ledger for Composition – Composition dealer cannot issue tax
invoice but when composition dealer purchase goods or services from Regular dealer
or under RCM then he has to pay GST tax as expense for them because composition
cannot claim ITC on this paid GST tax.
*How to Create GST Expense ledger in Tally Prime?

4. Create CGST Expense ledger
• Name – Enter the name “CGST”
• Under – Select “Indirect Expense” under group
• Type of Ledger– Select “Central Tax” under Type of Ledger
• Appropriate tax value in purchase invoice – Set to this option “Yes “when you want to
add central tax expense amount in purchase Account as separately in Profit & Loss A/c. If
you want to show your tax expense separately in indirect expense ledger or account in
Profit & Loss A/c then set to this option “No”. Like I set to this option “No”.
• Percentage of calculation – Don’t fill it is not compulsory.

2. Create SGST Expense ledger

• Name – Enter the name “SGST”
• Type of Ledger– Select “State Tax” under Type of Ledger
3. Create IGST Expense ledger

• Name – Enter the name “IGST”
• Type of Ledger– Select “Integrated Tax” under Type of Ledger

Note 1: Creation of all dealers will be same as in regular dealer accounting.

Note 2: Creation of Item will be same as in regular dealer accounting.
Note 3: Sale A/c, Purchase A/c ledger & Service Ledger creation will be also same as in
regular dealer accounting.
*Composition dealer Purchase Accounting in Tally

Prime?
• Composition dealer can do following purchased:

1. Composition dealer can purchase goods or services from local regular dealer with
paying GST tax.
2. Composition dealer can purchase goods or services from Interstate regular dealer with
paying GST tax.
3. Composition dealer can purchase goods or services from local Composition dealer
without paying GST tax.
4. Composition dealer can purchase goods or services from local unregistered dealer
with paying GST tax to Government under RCM provision.
5. Composition dealer can purchase certain goods or services which are defined under
RCM supplies from any registered dealer with paying GST tax to Government under
RCM provision.
1. Condition 1: Composition Purchase Goods from Regular Dealer Entry


➢ After filling above details Press 2 times enter from Item column & select GST tax
expense ledger form list.
Note: Apply GST Tax expense ledger according Supplier’s State. If Supplier’s state is same (Intra-
State) then apply CGST+SGST both. If Supplier’s state are different (Inter-State) from us then Apply
IGST only.
screenshot:
➢ Practice exercise for Purchase Goods from Regular Dealer Entry, for you.
• Date –02/04/2020
• Rate – 21000
2. Condition 2: Composition Purchase Goods from Composition Dealer Entry


Supplier”.
be without tax.
screenshot:
• Date –02/04/2020
• Rate – 21000
3. Condition 3: Composition Purchase Goods from Unregister Dealer Entry

• Party A/c Name – Select your Composition Supplier Like I select “Ajit Sharma (URD)
Supplier”.
Note: Unregister dealer cannot issue tax invoice so entry of purchase from Unregister dealer will be
without tax.
screenshot:

➢ Practice exercise for Purchase Goods from Unregister Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Aman Prasad (URD)
• Rate – 21000
• How to See Purchase GST Reports for composition in Tally Prime.
Step: GOT > Display More Reports > GST Reports > GST CMP-08 > Press “Alt+F2” for Change
Period
screenshot:
➢ In this reports you can see that there is two entries shown in “Include in Return” row.
4. Condition 4: Composition Purchase RCM Goods from register Dealer Entry

• Party A/c Name – Select your Composition Supplier Like I select “Ajit Sharma (URD)
Supplier”.
• Name of Item – Select Taxable Stock Item like I select ‘Silk Yarn’.
Note: Register dealer cannot issue tax invoice for RCM supplies so entry of purchase RCM supplies
from register dealer will be without tax.

screenshot:
➢ Practice exercise for Purchase Goods from register Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Aman Prasad(Reg.) supplier
• Name of Item – Silk Yarn
• Quantity – 12 Kgs
• Rate –1000
• How to See GST Reports for RCM Goods purchasing in Tally Prime.
Period
screenshot:
➢ In this reports you can see that Tax amount under RCM supplies shown.
*Composition dealer Sales Accounting in Tally

Prime?
• Composition dealer can do following Sales:

1. Composition dealer can sales goods or services to local regular dealer without
issuing GST tax.
2. Composition dealer can sales goods or services to local Composition dealer without
issuing GST tax.

3. Composition dealer can sales goods or services to local Unregister dealer without
issuing GST tax.
1. Condition 1: Composition sales Goods to local Regular Dealer Entry

Customer”.
Note: Composition dealer cannot issue tax invoice so entry of sales to local register dealer will be
without tax.
screenshot:
➢ Practice exercise for Sold Goods to Regular Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mukesh Gupta (reg.)
• Rate – 21000
2. Condition 2:Composition sales Goods to Composition Dealer Entry


Customer”.
Note: Composition dealer cannot issue tax invoice so entry of sales to local register dealer will be
without tax.
screenshot:
➢ Practice exercise for Sold Goods to Composition Dealer Entry, for you.
• Date –02/04/2020
• Party A/c Name – Mohan Prasad (Comp)
• Rate – 21000
*How to See GST CMP-08 Reports for sales in Tally Prime?

Period
screenshot:

➢ In this reports you can see that Tax amount are shown according to taxable turnover.
*How to See GSTR-4 Reports for sales in Tally Prime?

Step: GOT > Display More Reports > GST Reports > GSTR-4> Press “Alt+F2” for Change Period
screenshot:

TDS & TCS in Tally Prime
Chapter-5: TDS & TCS in Tally Prime

Tax Deducted at Source (TDS) in Tally Prime ............................................................................................ 281
*Implementation of TDS in Tally Prime ................................................................................................ 285
Tax Collected at Source (TCS) in Tally Prime ............................................................................................. 296
*Implementation of TCS in Tally Prime................................................................................................. 299
Tax Deducted at Source (TDS) in Tally Prime
• TDS – Tax deducted at source is one of the modes of collecting income-tax from the assessees.
Such collecting of tax is affected at the source when a specified Payment or income arises or
accrues.
TDS is applicable according to the provisions of the Income tax Act of 1961. The “Central
Board for Direct Taxes (CBDT) is responsible for managing it. TDS is applicable on specified
payment such as Salary, Commission, Brokerage, Royalty Payments, Interest earned on several
financial Investments, Earning from lotteries, rent Income etc.
TAN (Tax Deduction and Collection Account Number) is needed to be obtained by those
persons who are responsible for deducting and collecting TDS, It is 10 digit formats like
“DELA012457G”. In TAN Number formats first 3 Characters are City’s name of TDS Deductor and
4 characters is First letters of Name of Deductor.
Note: In TDS, Person who deduct/ Cut TDS of assessees is called ‘Deductor’ and Persons whom
TDS deducted by any Deductor is called ‘Deductee’.

• TDS is applicable on Specified payments and Rates which is given in following tables with its
sections defined by Indian government:
TDS rates Charts Applicable from 14/05/2020 To 31/03/2021
Under Payment Nature of Payments Threshold Rates for Rates for
Section code limit Residents Non-
Residents
192 92A & 92B Salaries Normal Normal Slab Normal
Slab rate rate Slab rate
193 193 Interest on securities 10000 7.5% 10%
194 194 Dividends 5000 7.5% 10%
194B 94B Winning from lotteries & 10000 30% 30%
Crossword puzzles
194BB 4BB Winning from Horse race 10000 30% 30%
194C 94C Contractor-Single 30000 0.75% No
transaction (Individual/HUF)
1.5% (Others)
194C 94C Contractor – Consolidated 100000 0.75% No
Payment During the F.Y. (Individual/HUF)
1.5% (Others)
194D 94D Insurance commission 15000 10% (Company) No
3.75% (Others)
194H 94H Commission/Brokerage 15000 3.5% No
194J 94J Professional Fees 30000 7.5% No
TDS rates Charts Applicable from 14/05/2020 To 31/03/2021

Under Payment Nature of Payments Threshold Rates for Rates for
Section code limit Residents Non-
Residents
194J 94J Technical Fee 30000 1.5% No
194IB 4IB Rent by Individual/HUF 50000/ 3.5% No
month
194I 94I Rent 240000 1.5 % No
(Plant/Machinery
/Equipment)
194I 94I Rent 240000 7.5 % (Land and No
Building/Furniture
& Fixture)
195 94J Fees for technical No 10% No
services
• TDS Returns – A TDS Return is a summary of all the transactions related to TDS made during a
quarter. TDS Return is a quarterly statement submitted by the Deductor to the Income Tax
Department. The statement shows a summary of all the entries for TDS collected by the
Deductor and the TDS paid by the Deductor to the Income Tax Authority.

The TDS Return statement includes details like the PAN number
of the Deductor & the deductees, all the detailed particulars of the TDS paid to the government
and the TDS Challan information.
• Types of TDS Returns which is filed by Deductor

Types of TDS Returns forms Description about Returns Forms
Form 24Q Statement for tax deducted at source from
salaries
Form 26Q Statement for tax deducted at source on all
payments other than salaries.
Form 27Q Statement for tax deducted at source on all
payments other than salaries for NRI.
• Form 26AS – Form 26AS is a statement that provides details of any amount deducted as TDS or
TCS from various sources of income of a taxpayer. This tax deducted is then deposited with the
government by the Deductor. It also reflects details of advance tax/self-assessment tax & high-
value transactions entered into by the taxpayer.
• Form 15H/15G – Form 15G (Less than 60 Years) and Form 15H (more than equal to 60 Years)
are self declaration forms that an individual submits to the bank requesting not to deduct TDS
on interest income as their income is below the basic exemption limit. For this, providing PAN is
compulsory. Some banks allow you to submit these forms online through the bank’s website.
• Dues Dates for TDS Payments & Return

Collection Quarter Quarter Period Due Dates for Due dates for
Months Payment TDS filing returns
April 1st 1st April to 30th Up to 7th April Up to 31St July
May Quarter June Up to 7th May
June Up to 7th June
July 2nd 1st July to 30th Up to 7th July Up to 31St
August Quarter September Up to 7th August October
September Up to 7th September
October 3rd 1st October to Up to 7th October Up to 31St
November Quarter 31st December Up to 7th November January
December Up to 7th December
January 4th 1st January to Up to 7th January Up to 31St May
February Quarter 31st March Up to 7th February
March Up to 7th March
Note: In case of PAN is not available of Deductee, Deductor deducts TDS @20% of Deductee.

• TDS Certificate – TDS certificates is a proof document of all about TDS deduction of assessees.
This Certificate issued by a person deducting TDS to the Assessee from whose income TDS was
deducted while making payment.
Types of TDS Certificate

Certificate type Description of certificate For Issue Frequency Dues Dates
Form 16 TDS On The Payment Of Salary Yearly 31st May
Form 16 A TDS On Non-Salary Payments Quarterly 15 Days From The Due
Date Of Return Filing
Form 16 B TDS On Sale Of Property Every 15 Days (From Return
Transaction Filing Due Date)
Form 16 C TDS On Rent Every 15 Days (From The Due
Transaction Date Of Returns Filing)
• New Income Tax Slab rates for Financial Year 2021-22

Income tax Slab Rates Charts for Individual & HUF below 60 Years
From (₹) To (₹) Tax Rates
1 2,50,000 0%
2,50,001 5,00,000 5%
5,00,001 7,50,000 10%
7,50,001 10,00,000 15%
10,00,001 12,50,000 20%
12,50,001 15,00,000 25%
15,00,000 Above 30%
Note 1: In case of Senior citizens (above 60 years up to 80 years) up to 3 lacs & Super senior
citizen (Above 80 years) up to 5 lacs are exemption limit in income tax for tax calculation.
Note 2: Additional Health and Education cess at the rate of 4 % will be added to the income tax
liability in all cases (Increased from 3% since FY 18-19). CESS is calculated on total amounts of
Income tax plus surcharge.
• Surcharge: Surcharge is levied on the amount of income-tax at specified rates if total income of
assessees exceeds specified limits. Charts for Individual/HUF/AOP/BOI/ Artificial Judicial Person.
Income tax Limit & Surcharge Rates charts For FY 2021-22
Income from (₹) Income up to (₹) Surcharge Rates
50,000,00 1,00,000,00 10%
1,00,000,01 2,00,000,00 15%
2,00,000,01 5,00,000,00 25%
5,00,000,01 Above 37%
Note: Surcharge is calculated on total amount of income tax of assessees.

*Implementation of TDS in Tally Prime
• Process 1: Activation of TDS
*How to Activate of TDS in Tally Prime?

Step: GOT > F11
Activate the Option “Enable Tax Deducted at Source (TDS)”, Like that Following Screenshot:
➢ Press ‘Enter’ to filling all TDS details

➢ After Pressing Enter, Company TDS Deductor Details screen appear like following
screenshot:
➢ Press F12 & Enable the all option for more Details to fill about Deductor like, this
➢ Press Enter or Ctrl+A to save configuration.

➢ After Enable the all option in configuration screen, TDS details screen will shown like
that following screenshot:

➢ Fill all Company TDS Details for Deductor like,

• TAN registration number: Type TAN registration Number which is created in time of
TAN applied. Like I type ‘T258582HKL’
• Tax deduction and collection Account Number (TAN) : Enter the TAN Number of
Deductor. Like I enter “DELA02545I”
• Deductor type : Select Deductor type from list like I select I ‘Company’
• Deductor branch/division : Type the Branch of Deductor, like I Type ‘New Delhi’
• STD Code : Type STD Code of Deductor like I type ‘011’
• Phone No : Type Phone Number of Deductor like I type ‘8544555697’
• E-mail : Type E-mail ID of Deductor like I type ‘ajay@gmail.com’
• Set/alter details of person responsible : If you want to fill all details about Deductor
then set to this option ‘Yes’
➢ After Set to this option ‘Yes’ a new window appear fill all Personal details of Deductor
like that screenshot:
➢ For Save this details & return back in company details screen Press ‘Ctrl+A’ or Enter
• Ignore IT exemption limit for TDS deduction: If you want to ignore Exemption limit of
income tax for TDS deduction then set to this option ‘Yes’. Like I set to this option ‘No’
• Activate TDS for stock items: If you set TDS rates in stock Item then set to this option
‘Yes’. I set to this option ‘No’.

• Provides surcharge and cess details: If you also apply Surcharge and cess rates for TDS
nature of Payments then set to this option ‘Yes’.
➢ After set to surcharge and cess option ‘Yes’ a new window appear like that following
screenshot:
➢ In this screen you can fill all details related to surcharge and cess. Like
▪ Residential Status – in this field select Deductee residential status that means
your Deductee type are resident or non-resident. Select any one form them
like, I select ‘resident’.
▪ Deductee status – in this section select your deduct type from list. I select
“Individual/HUF-Resident”.
▪ Applicable Date – Type date from which you apply Surcharge and cess rates for
your Deductee like, I enter “01/04/2020”.
▪ Cess rates – Type here Rates of Cess which define government like, I type “4%”.
▪ Sec. Ed. Cess Rate – Enter here Cess rate of Secondary Education Cess. I leave it
as empty.
▪ Surcharge Rates – Type rates of surcharge like I type ‘10%’.
▪ Exemption Limit – Enter here Exemption limit to surcharge calculation like, I
enter 5000000.
➢ Fill all details in TDS Surcharge Details screen like following screenshot:

➢ After filling all Above details in Company TDS Deductor details screen, Final screen of


➢ Again Press Ctrl+A to save Company feature screen changes
• Process 2: Create TDS Nature of Payments
*How to Create TDS Nature of Payments in Tally Prime?

Step: GOT > Create > TDS Nature of Payments > Enter
➢ After reaching by follow above step, screen of TDS nature of payment will shown like

• Name – Type name TDS nature of Payments like, I type “Rent for Land and
Building/Furniture & Fixture”
• Section – Enter the section code of TDS nature of Payments which you enter in name
box like I enter “194I” which is section of ‘Rent income’.
• Payment code – Type Payment code of TDS nature of Payments just like, I type payment
code of ‘Rent for land and Building/Furniture & fixture’ “94I”.
• Remittance code – in this section leave empty because not compulsory.
• Rate for Individual/HUF (with PAN) – Type TDS rates of Natures of Payments like I type
rate of Rent for land and building/Furniture & fixture “7.5%”.
• Rate for Individual/HUF (without PAN) – In this section leave it by default value that is
20%.
• Rate for Other Deductee types (with PAN) – Leave it “7.5%” for other Deductee types

• Rate for Other Deductee types (without PAN) – In this section leave it by default value
that is 20%.
• Threshold/Exemption limit – Type Exemption limit for TDS calculation after above limit
like I type “240000” for Rent for land and building/Furniture & fixture.
➢ After filling all above details screen will shown like that following screenshot:

Note: If any option not shows in TDS nature of Payment creation screen then Press F12
& enable that option.
➢ Practice Exercise for Create TDS nature of Payments, for You

Name Section Payment Rate for Threshold/Exemption
code Individual/HUF limit
(with PAN)
Professional Fees 194J 94J 7.5% 30000
Winning from 194BB 4BB 30% 10000
Horse race
• Process 3: Create Expense Ledger to Booking Expenses
*How to Create Expense Ledger in Tally Prime?

➢ In ledger screen fill all details for Expense ledger like,
• Name – Type name of Expense like I type “Rent on Land”
• Under – Select “Indirect Expense”
• Is TDS applicable – Select ‘Applicable’ for TDS deduction
• Nature of Payments – Select Nature of Payments for Rent on Land like I select “Rent for
land and building/Furniture & fixture”.

➢ Practice Exercise for Create Expense Ledger, for You

Name Under Is TDS applicable Nature of Payment
Audit fees Indirect Expense Applicable Professional fees
Horse Race Indirect Expense Applicable Winning from Horse
Expense race
• Process 4: Create Deductee Ledger to Paid Expense
*How to Create Deductee Ledger in Tally Prime?

➢ In ledger screen fill all details for Deductee ledger like,
• Name – Type name of Deductee like, I type “Mahesh Gupta”
• Under – Select “Sundry creditor”
• Maintain Balance bill by bill – Set to ‘Yes’
• Deductee type – Select your Select Deductee type from list like, I select “Individual/HUF-
Resident”.
• Deduct TDS in Same Voucher – Set to this option ‘Yes’ to deduct TDS during voucher
entry.
• PAN/IT No – Type PAN Number of to Deductee for TDS deduct according to define rate.
Like I type “ASDFG3456K”

➢ Practice Exercise for Create Deductee Ledger, for You

Name Under Maintain Is TDS Deductee Deduct PAN/IT No
Balance bill Deductee type TDS in
by bill Same
Voucher
Ritesh Sundry Yes Yes Body of Yes LKJHP4567L
Kumar Creditor Individual
Nitish Sundry Yes Yes Association Yes GHJKC8765K
Pandey Creditor of Person
• Process 5: Create TDS Ledger to Deduct TDS
*How to Create TDS Ledger in Tally Prime?

➢ In ledger screen fill all details for TDS ledger like,
• Name – Type name of TDS type like, I type “TDS on Rent”
• Under – Select “Duties & Taxes”
• Type of duty/tax – Select “TDS”
• Nature of Payment – Select Nature of Payment for that TDS ledger like, I select “
Rent for land and building/Furniture & fixture”.
➢ Practice Exercise for Create TDS Ledger, for You

Name Under Type of duty/tax Nature of Payment
TDS on Professional Duties & Taxes TDS Professional fees
fees
TDS on Horse Race Duties & Taxes TDS Winning from Horse
race

• Process 6: Pass Voucher Entry to Deduct TDS from Payment
*How to Pass Journal Voucher Entry to Deduct TDS in Tally Prime?

➢ In Journal Voucher screen Pass entry in Dr & Cr mode like,
• Dr – Select Expense Ledger like I select “Rent on Land” – Type 250,000
• Cr – Select Deductee to Payment Expense like, I Select “Mahesh Gupta” –Amount Auto
fill
➢ After selection Deductee bill wise details screen appear, in this screen only press enter
to go to return Journal voucher screen
• Cr – Select TDS ledger for TDS deduction like, I select “TDS on Rent”. - Amount Auto fill
➢ Practice Exercise for Pass Voucher Entry Deduct TDS from Payment, for You
1. For Professional fees
• Dr – Audit fees - 40000
• Cr – Ritesh Kumar – Amount Auto fill
• Cr – TDS on Professional fees - Amount Auto fill
2. For Horse Race

• Dr – Horse Race Expense - 20000
• Cr – Nitish Pandey – Amount Auto fill
• Cr – TDS on Horse Race - Amount Auto fill
• Process 7: Show TDS Reports
*How to show TDS deduction Reports in Tally Prime?

Step: GOT > Alt+G >Type “Form 26Q” > Enter

Or, GOT > Display More Reports > TDS Reports > Form 26Q > Enter
➢ After reaching above step 26Q TDS Reports Shown Like that following screenshot:
• Process 8: Pass Payment Voucher Entry to Payment of TDS
*How to Pass Payment Voucher Entry to Payment TDS in Tally Prime?

Step: GOT > Voucher > F5 > Ctrl+H > Double Entry > Ctrl+F
➢ After Pressing “Ctrl+F” a Autofill Payment Screen appear, In this screen fill all details for
Payment TDS like,
• Type of transaction – Select ‘Stat Payment’
• Tax type – Select ‘TDS’
• Period from – Enter first date of month in which TDS deducted like I Enter ‘01/04/2020’
• To – Enter last date of month in which TDS is deducted like I Enter ‘30/04/2020’
• Deducted Till Date – Type date of Deduction TDS like I type ‘01/04/2020’.
• Section – Select your Section to Payment of TDS like I select “194I”
• Nature of Payment – Select Nature of payment to Pay TDS like, I select “Rent for land
and building/Furniture & fixture”
• Deductee status – Select Deductee Status to Pay TDS of particular Deductee like, I select
“All Items”.
• Residential Status – Select Residential Status Deductee to Pay TDS of particular Resident
like, I select “All Items”.
• Cash/Bank – Select Mode of Payment of to Pay TDS like, I select “SBI Bank A/c”

➢ Press Enter on Bank and Go to Payment voucher

➢ After filling Autofill Payment screen final voucher screen shown like, that following
screenshot:
Note: After online Payment of TDS you receive challan no, Challan date, BSR code etc.
➢ Practice Exercise for Pass Payment Voucher Entry to Pay TDS , for You
1. For Professional fees
• Press ‘Ctrl+F’ in Payment Voucher and fill all details like for Rent in Above Example
2. For Horse Race
• Press ‘Ctrl+F’ in Payment Voucher and fill all details like for Rent in Above Example
• Process 9: Challan Reconciliation

*How to do reconcile our Challan after Payment of TDS in Tally Prime?

Step: GOT > Alt+G > Type” TDS Challan” > Enter
➢ In Challan reconciliation screen Press “Alt+R” to Reconcile our Challan
➢ After Pressing “Alt+R” fill details like,
• Quarter from – fill first date of Quarter like,”01/04/2020”
• Quarter To – fill last date of quarter like,”30/06/2020”
• Cheque/DD no – type cheque/DD no which using in time of Payment of TDS. Like,
“854465”
• Cheque/DD Date – type cheque/DD date which using in time of Payment of TDS. like
“01/04/2020”
• BSR code – Type 7 digit BSR code given in time of payment TDS like “4442519”
• Challan No – Type Challan No which is given after payment of TDS like “4456565554”
• Challan date – Type date of Payment of TDS by online. Like “01/04/2020”.
• Bank Name – Type name of Bank which is use for payment TDS, like “SBI Bank A/c”
• Branch Name – Type name Branch of Bank. Like “New Delhi”.
➢ After filling all details Press Enter or Ctrl+A to Reconciliation.
• Process 10: Pass Payment Voucher Entry for Payment of Deductee
*How to Pass Payment Entry for Payment to Deductee in Tally Prime?

Step: GOT > Voucher > F5 > Ctrl+H > Double Entry
➢ In Payment Voucher screen Pass entry in Dr & Cr mode like,
• Dr –Select Deductee for Payment Expense like, I select “Mahesh Gupta” – Select Agst
Ref and Press Enter to Amount Autofill
• Cr – Select mode of Payment like, I select “SBI Bank” – Amount Autofill
➢ In Bank Allocation screen fill details about bank Like Inst no (455554), Inst date
(01/04/2020) etc.

➢ Practice Exercise for Pass Voucher Entry Deduct TDS from Payment, for You
1. For Ritesh Kumar
• Dr – Ritesh Kumar – Agst Ref – Amount Autofill
• Cr – SBI Bank A/c– Amount Auto fill
2. For Nitish Pandey

• Dr – Nitish Pandey – Agst Ref – Amount Autofill
Tax Collected at Source (TCS) in Tally Prime
• TCS – Tax collected at source is what seller collects from buyers while selling a specified
category of goods. The TCS rates vary for all categories of goods. In TCS that seller collects TCS
from buyers needs to deposit to government. All the goods on which the seller levies tax from
the buyers are governed under the section of “206” of Income tax act.
TAN (Tax Deduction and Collection Account Number) is needed to be obtained
by those persons who are responsible for deducting and collecting TCS, It is 10 digit formats like
“DELA012457G”. In TAN Number formats first 3 Characters are City’s name of TCS Collector and
4 characters is First letters of Name of Collector.
Note: In TCS, Person who Collects TCS from buyers is called ‘Collector (Seller)’ and Persons
whom TCS Collected by any Collector is called ‘Collectee (Buyer)’.

• TCS is applicable on Specified Goods and Rates which is given in following tables under section
206C defined by Indian government.
Payment code Types of Goods Applicable from
14/05/2020 to 31/03/2021
TCS Rate (%)
6CA Liquor of alcoholic nature, made for 0.75%
consumption by humans
6CB Timber wood under a forest leased 1.875%
6CI Tendu leaves 3.75%
6CC Timber wood by any other mode than forest 1.875%
leased
6CD A forest produce other than Tendu leaves and 1.875%
timber
6CE Scrap 0.75%
6CE Minerals like lignite, coal and iron ore 0.75%
Bullion that exceeds over Rs. 2 lakhs/ Jewellery 0.75%
that exceeds over Rs. 5 lakhs
6CE Purchase of Motor vehicle exceeding Rs. 10 0.75%
Lakhs
6CF Parking lot 1.5%
6CG Toll Plaza 1.5%
6CH Mining and Quarrying 1.5%
• Classification of Sellers and Buyers for TCS

Types of sellers who is eligible to Collect TCS Types of Buyers who liable to Pay TCS
State Government State Government
Central government Embassy of High Commission
Local Authority Public Sector Companies
Partnership firm Central government
Companies registered under the company Act Trade Representation of a foreign Nation
Statutory Corporation or Authority Consulates
Co-operative Society Sports club/Social club
Any HUF or Person who is eligible for an Audit of his
Accounts under the Income-tax act during a fiscal year
• TCS Returns – A TCS Return is a summary of all the transactions related to TCS made during a
quarter. TCS Return is a quarterly statement submitted by the Collector to the Income Tax
Department. The statement shows a summary of all the entries for TCS collected by the
Collector and the TCS paid by the Collector to the Income Tax Authority.
The TCS Return statement includes details like the PAN number
of the Collector & the Collectee, all the detailed particulars of the TCS paid to the government
and the TCS Challan information.

• Types of TCS Returns which is filed by Collector

Types of TCS Returns forms Description about Returns Forms
Form 27EQ Quarterly statement that mention details
and information regarding Tax collected at
source at the end of every quarter
Form 27E Annual Statement that mentions details and
information regarding Tax collected at
source
• Dues Dates for TCS Payments & Return

Collection Quarter Quarter Period Due Dates for Due dates for
Months Payment TDS filing returns
April 1st 1st April to 30th Up to 7th April Up to 15th July
May Quarter June Up to 7th May
June Up to 7th June
July 2nd 1st July to 30th Up to 7th July Up to 15th
August Quarter September Up to 7th August October
September Up to 7th September
October 3rd 1st October to Up to 7th October Up to 15th
November Quarter 31st December Up to 7th November January
December Up to 7th December
January 4th 1st January to Up to 7th January Up to 15th May
February Quarter 31st March Up to 7th February
March Up to 7th March
Note 1: In case of PAN/Adhar is not available of Collectee, Collector Collects TCS twice of the
normal rate applicable or 5% from Collectee
Note 2: For Payment of TCS Challan ITNS 281 is used
Note 3: TCS is not applicable on Purchased goods for Personal consumption/use
Note 4: TCS is not applicable for the purchaser buys the goods for manufacturing, processing or
production and not for the purpose of trading of those goods.
Note 5: TCS under GST applicable when Dealer/Traders are e-commerce party.
• TCS Certificate – TCS certificates is a proof document of all about TCS Collection from buyers.
This Certificate issued by Collector to the Buyers. It is issued upon the filling of TCS returns. In
this certificate all information mentioned about TCS collection such as Buyer and Seller’s name,
PAN number of both the buyer and seller, Seller’s TAN number, Date of Collection of TCS, Total
Tax collected by Seller and Applicable TCS tax rates etc.

Types of TDS Certificate

Certificate type Description of Issue Frequency Dues Dates
certificate For
27D All about TCS Quarterly This Certificate is issued within
collection 15 days after dues dates of filling
quarterly return of TCS
*Implementation of TCS in Tally Prime
• Process 1: Activation of TCS
*How to Activate of TCS in Tally Prime?

Step: GOT > F11
Activate the Option “Enable Tax Collected at Source (TCS)”, Like that Following Screenshot:
➢ Press ‘Enter’ to filling all TCS details

➢ After Pressing Enter, Company TCS Collector Details screen appear like following
screenshot:
➢ Press F12 & Enable the all option for more Details to fill about Collector like, this

➢ Press Enter or Ctrl+A to save configuration.

➢ After Enable the all option in configuration screen, TCS details screen will shown like
➢ Fill all Company TCS Details for Collector like,

• TAN registration number: Type TAN registration Number which is created in time of
TAN applied. Like I type ‘T258582HKL’
• Tax deduction and collection Account Number (TAN): Enter the TAN Number of
Collector. Like I enter “DELA02545I”
• Deductor type : Select Collector type from list like I select I ‘Company’
• Deductor branch/division : Type the Branch of Collector, like I Type ‘New Delhi’
• STD Code : Type STD Code of Collector like I type ‘011’
• Phone No : Type Phone Number of Collector like I type ‘8544555697’
• E-mail : Type E-mail ID of Collector like I type ‘ajay@gmail.com’
• Set/alter details of person responsible : If you want to fill all details about Collector
then set to this option ‘Yes’
➢ After Set to this option ‘Yes’ a new window appear fill all Personal details of Collector
like that screenshot:
➢ For Save this details & return back in company details screen Press ‘Ctrl+A’ or Enter

• Ignore IT exemption limit: If you want to ignore Exemption limit of income tax for TCS
Collection then set to this option ‘Yes’. Like I set to this option ‘No’
• Provides surcharge and cess details: If you also apply Surcharge and cess rates for TCS
nature of Goods then set to this option ‘Yes’.
➢ After set to surcharge and cess option ‘Yes’ a new window appear like that following
screenshot:
➢ In this screen you can fill all details related to surcharge and cess. Like
▪ Residential Status – in this field select Collectee residential status that means
your Collectee type are resident or non-resident. Select any one form them like,
I select ‘resident’.
▪ Collectee status – in this section select your Collectee type from list. I select
“Individual/HUF-Resident”.
▪ Applicable Date – Type date from which you apply Surcharge and cess rates for
your Collectee like, I enter “01/04/2020”.
▪ Cess rates – Type here Rates of Cess which define government like, I type “4%”.
▪ Sec. Ed. Cess Rate – Enter here Cess rate of Secondary Education Cess. I leave it
as empty.
▪ Surcharge Rates – Type rates of surcharge like I type ‘10%’.
▪ Exemption Limit – Enter here Exemption limit to surcharge calculation like, I
enter 5000000.
➢ Fill all details in TCS Surcharge Details screen like following screenshot:

➢ After filling all Above details in Company TCS Collector details screen, Final screen of

Sdfgdg
• Process 2: Create TCS Nature of Goods
*How to Create TCS Nature of Goods in Tally Prime?

Step: GOT > Create > TCS Nature of Goods > Enter
➢ After reaching by follow above step, screen of TCS nature of Goods will shown like that

• Name – Type name TCS nature of Goods like, I type “Scrap”
• Section – Enter the section code of TCS nature of Goods like I enter “206C” which is
section code of ‘Scrap’.
• Payment code – Type Payment code of TCS nature of Goods just like, I type payment
code of ‘Scrap’ “6CE”.
• Rate for Individual/HUF (with PAN) – Type TDS rates of Natures of Payments like I type
rate of Rent for land and building/Furniture & fixture “0.75%”.

• Rate for Individual/HUF (without PAN) – In this section type Double TCS rates or Flat
5% for those Collectee who have not PAN. Like I type double TCS rates “1.5%“for Scrap.
• Rate for Other Collectee types (with PAN) – Leave it “0.75%” for other Deductee types
• Rate for Other Collectee types (without PAN) – In this section leave it by default value
that is 1.5%.
➢ Threshold/Exemption limit – Leave it’s as empty. It is not compulsory

Note: If any option not shows in TCS nature of Goods creation screen then Press F12 &
enable that option.
➢ Practice Exercise for Create TDS nature of Payments, for You

Name Section Payment Rate for Rate for
code Individual/HUF Individual/HUF
(with PAN) (without PAN)
Timber wood under a 206C 6CB 1.875% 3.75%
forest leased
Tendu leaves 206C 6CI 3.75% 7.5%
• Process 3: Create Stock Item for TCS Nature of Goods
*How to Create Stock item for TCS goods in Tally Prime?

Step: GOT > Create > Stock Item
➢ In Stock Item screen fill all details for TCS nature of Goods like,
• Name – Type name of TCS Nature of Goods like I type “Scrap”
• Under – Select “Primary”

• Is TCS applicable – Select ‘Applicable’ for TCS Collection

• Nature of Goods – Select Nature of Goods for Scrap Item like I select “Scrap”.
➢ Practice Exercise for Create Expense Ledger, for You

Name Under Units Is TCS applicable Nature of Goods
Timber Primary MT Applicable Timber wood
under a forest
leased
Tendu Leaves Primary Kgs Applicable Tendu leaves
• Process 4: Create Collectee Ledger to Selling
*How to Create Collectee Ledger in Tally Prime?

➢ In ledger screen fill all details for Collectee ledger like,
• Name – Type name of Collectee like, I type “Anish Gupta”
• Under – Select “Sundry Debtor”
• Maintain Balance bill by bill – Set to ‘Yes’
• Is TCS Applicable – Set to “Yes”
• Buyer/Lessee type – Select your Collectee type from list like, I select “Individual/HUF-
Resident”.
• PAN/IT No – Type PAN Number of to Collectee for TCS Collection according to define
rate. Like I type “ASDFG3456K”

➢ Practice Exercise for Create Deductee Ledger, for You

Name Under Maintain Balance Is TCS Buyer/Lessee PAN/IT No
bill by bill Collectee type
Manish Sundry Yes Yes Body of LKJHP4567L
Kumar Debtor Individual
Rajneesh Sundry Yes Yes Association of GHJKC8765K
Pandey Debtor Person
• Process 5: Create TCS Ledger to Collect TCS
*How to Create TCS Ledger in Tally Prime?

➢ In ledger screen fill all details for TCS ledger like,
• Name – Type name of TCS type like, I type “TCS on Scrap”
• Under – Select “Duties & Taxes”
• Type of duty/tax – Select “TCS”
• Nature of Payment – Select Nature of Goods for that TCS ledger like, I select “Scrap”.

➢ Practice Exercise for Create TCS Ledger, for You

Name Under Type of duty/tax Nature of Goods
TCS on Timber Duties & Taxes TCS Timber wood under
a forest leased
TDS on Tendu Leaves Duties & Taxes TCS Tendu leaves
• Process 6: Create TCS Sale Ledger to Sale TCS Goods
*How to Create TCS Sale Ledger in Tally Prime?

➢ In ledger screen fill all details for TCS Sale ledger like,
• Name – Type name of TCS Sale type like, I type “Scrap Sale”
• Under – Select “Sales Account”
• Is TCS Applicable – Select “Applicable”
• Nature of Goods – Select Nature of Goods for that TCS Sale ledger like, I select “Scrap”.
➢ Practice Exercise for Create TCS Sale Ledger, for You

Name Under Is TCS Applicable Nature of Goods
Timber Sale Sales Account Applicable Timber wood under
a forest leased
Tendu Leaves Sale Sales Account Applicable Tendu leaves
• Process 7: Pass Sale Voucher Entry to Collect TCS from Buyers
*How to Pass Sale Voucher Entry to Collect TCS in Tally Prime?


• In Sale Voucher screen, fill all details like,

• Party A/c Name– Select Party Ledger to Sale like I select “Anish Gupta”
• Sales Ledger - Select Sales Ledger for TCS goods like, I Select “Scrap Sale”
• Name of item – Select your TCS Goods for Sale like, I select “Scrap”.
• Quantity – Type Quantity Amount of TCS Goods, Like I type “100 MT”
• Rate – Type Rate of One Quantity of YCS Goods, like I type “1000”
• After filling above details Press 2 times enter from Name of Item column & select TCS
tax ledger form list for Your TCS Goods.
➢ Like I Select “TCS on Scrap” ledger in ledger Column
➢ TCS tax Automatically Calculated after Select TCS tax Ledger.
screenshot::
➢ If you want see TCS tax calculation details Then Press “Ctrl+I” and Click on “TCS – Tax
Analysis” & then Press “Alt+F1” for detailed
➢ After follow above step TCS tax Calculation screen shown like that following screenshot:
➢ Press “Esc” Button to Back Sales voucher screen
➢ Press Ctrl+A to save Sale Voucher screen
➢ Practice Exercise for Pass Sales Voucher Entry Collect TCS from buyer, for You
1. For Timber wood
• Party A/c Name– Manish Kumar
• Sales Ledger – Timber Sale
• Name of item – Timber
• Quantity – 50 MT
• Rate – 5000

• TCS Tax Ledger – TCS on Timber
2. For Tendu Leaves

• Party A/c Name– Rajneesh Pandey
• Sales Ledger – Tendu Leaves Sale
• Name of item – Tendu Leaves
• Quantity – 80 Kgs
• Rate – 2000
• TCS Tax Ledger – TCS on Tendu Leaves
Process 8: Show TCS Reports
*How to show TCS Collection Reports in Tally Prime?

Step: GOT > Alt+G >Type “Form 27EQ” > Enter
Or, GOT > Display More Reports > TCS Reports > Form 27EQ > Enter
➢ After reaching above step 27EQ TCS Reports Shown Like that following screenshot:
• Process 9: Pass Payment Voucher Entry to Payment of TCS
*How to Pass Payment Voucher Entry to Payment TCS in Tally Prime?

Step: GOT > Voucher > F5 > Ctrl+H > Single Entry > Ctrl+F
➢ After Pressing “Ctrl+F” a Autofill Payment Screen appear, In this screen fill all details for
Payment TCS like,

• Type of transaction – Select ‘Stat Payment’

• Tax type – Select ‘TCS’
• Period from – Enter first date of month in which TCS Collected like I Enter ‘01/04/2020’
• To – Enter last date of month in which TCS is Collected like I Enter ‘30/04/2020’
• Collected Till Date – Type date of Collection TCS like I type ‘01/04/2020’.
• Section – Select your Section to Payment of TCS like I select “206C”
• Nature of Goods – Select Nature of Goods to Pay TCS like, I select “Scrap”
• Collectee status – Select Collectee Status to Pay TCS of particular Collectee like, I select
“All Items”.
• Residential Status – Select Residential Status Collectee to Pay TCS of particular Resident
like, I select “All Items”.
• Cash/Bank – Select Mode of Payment of to Pay TCS like, I select “SBI Bank A/c”
➢ Press Enter on Bank Ledger and Go to Payment voucher

➢ After filling Autofill Payment screen final voucher screen shown like, that following
screenshot:
Note: After online Payment of TCS you receive challan no, Challan date, BSR code etc.

➢ Practice Exercise for Pass Payment Voucher Entry to Pay TCS , for You
3. For Tendu Leaves
• Press ‘Ctrl+F’ and fill all details like for “Tendu Leaves” in Above Example
4. For Timber
• Press ‘Ctrl+F’ and fill all details like for “Timber wood” in Above Example
• Process 10: Challan Reconciliation

*How to do reconcile our Challan after Payment of TCS in Tally Prime?
Step: GOT > Alt+G > Type” TCS Challan” > Enter
➢ In Challan reconciliation screen Press “Alt+R” to Reconcile our Challan
➢ After Pressing “Alt+R” fill details like,
• Quarter from – fill first date of Quarter like,”01/04/2020”
• Quarter To – fill last date of quarter like,”30/06/2020”
• Cheque/DD no – type cheque/DD no which using in time of Payment of TCS. Like,
“854765”
• Cheque/DD Date – type cheque/DD date which using in time of Payment of TCS. like
“01/04/2020”
• BSR code – Type 7 digit BSR code given in time of payment TCS like “4442819”
• Challan No – Type Challan No which is given after payment of TCS like “4456565554”
• Challan date – Type date of Payment of TCS by online. Like “01/04/2020”.
• Bank Name – Type name of Bank which is use for payment TCS, like “SBI Bank A/c”
• Branch Name – Type name Branch of Bank. Like “New Delhi”.
➢ After filling all details Press Enter or Ctrl+A to Reconciliation.
• Process 11: Pass Receipt Voucher Entry to Receipt due amounts from Collectee
*How to Pass Receipt Entry to received amount from Collectee in Tally Prime?
Step: GOT > Voucher > F6 > Ctrl+H > Double Entry
➢ In Payment Voucher screen Pass entry in Dr & Cr mode like,

• Cr –Select Collectee for Received amounts like, I select “Anish Gupta” – Select Agst Ref
and Press Enter to Amount Autofill
• Dr – Select mode of Payment like, I select “SBI Bank” – Amount Autofill
➢ In Bank Allocation screen fill details about bank Like Inst no (455554), Inst date
(01/04/2020) etc.
➢ Practice Exercise for Pass Receipt Voucher Entry for Received due amounts from
buyers/Collectee, for You
3. For Manish Kumar
• Dr – Manish Kumar – Agst Ref – Amount Autofill
4. For Rajneesh Pandey

• Dr – Rajneesh Pandey – Agst Ref – Amount Autofill

Tally Prime Payroll Full Accounting
Payroll Processing in Tally Prime
Chapter-6: Payroll Processing In Tally Prime

• What is Employees’ Provident Fund (EPF)? ...................................................................................... 313
• What is Employee Pension Scheme (EPS)? ....................................................................................... 314
• What is Employees Deposit Linked Insurance (EDLI) Scheme? ........................................................ 315
• What is Employees' State Insurance (ESI) Scheme? ......................................................................... 316
• What is National Pension Scheme (NPS)?......................................................................................... 317
• What is Gratuity? .............................................................................................................................. 318
• What is Professional Tax? ................................................................................................................. 319
Implementation of Payroll in Tally Prime ................................................................................................. 321
• Process 1: Activation of Payroll..................................................................................................... 321
• Process 2: Create Employee Category .......................................................................................... 323
• Process 3: Create Employee Group Master .................................................................................. 324
Part 1: Create Employee Group ........................................................................................................ 324
Part 2: Create Employee ................................................................................................................... 326
• Process 4: Create Payroll Master .................................................................................................. 329
Part 1: Create Payroll Units (Simple & Compound) .......................................................................... 329
Part 2: Create Attendance/Production Types ................................................................................... 330
• Process 5: Create Pay Heads ......................................................................................................... 331
Part 1: Create Earning Pay heads ...................................................................................................... 331
Part 2: Create Deduction Pay heads ................................................................................................. 346
Part 3: Create Statutory Deduction of Employee Pay heads ............................................................ 348
Part 4: Create Statutory Contribution of Employer Pay heads ......................................................... 356
• Process 6: Define Salary Details .................................................................................................... 366
Part 1: Create/Define Salary Details ................................................................................................. 366
• Process 7: Payroll Processing ........................................................................................................ 370
Part 1: Attendance Voucher.............................................................................................................. 370
Part 2: Payroll Voucher ..................................................................................................................... 372

Part 3: Payment Voucher .................................................................................................................. 382

• Process 7: Payroll Reports............................................................................................................. 388
• Process 8: Payroll Statutory Reports............................................................................................. 396
Payroll Accounting: - Payroll Accounting is the features of Calculating and distributing wages,
Salaries and Withholding to Employees and certain agencies.
It is essentially the Calculation, Management, Recording and analysis of employee’s

Compensation. In addition payroll accounting also includes recording for benefits and withholding taxes
and deduction related to compensation.
It is Useful for small and medium type businesses.
• What is Employees’ Provident Fund (EPF)?

Ans - An EPF is a mandatory retirement savings scheme used in India, Singapore, and other
developing nations. These funds also include pension funds provided by employers.
In these Funds a worker/Employee gives a portion of his/her salary to the provident
fund (PF Account), and an employer also make a contribution on behalf of the employees in
Employee’s PF Account. The money in the fund is kept and handled by the government and
ultimately withdrawn by the retirees or their surviving families. In certain cases, a provident
fund even pays out in disabled Condition that means employee is not in a condition to work.
Note 1: For Registration in EPFO, Every Company, Firm and Organization with over 20
employees is required by law to register with EPFO.
Note 2: UAN number is 12 digits Number which is provides by Employees Provident Fund
Organization (EPFO) to every employee to Shown his all about PF deduction of Employees & and
Contribution by employer in Employee’s PF Account.

Note 3: By Using UAN number employee also can withdraw his PF amount by online or offline.
Note 4: In PF Account, Employee contributes 12% of (Basic Salary + Dearness Allowance +
Retaining Allowance) & also Employer contributes from own pocket @3.67% of Employee’s
(Basic Salary + Dearness Allowance + Retaining Allowance).
Note 5: For contribution in PF, Earning (Basic Salary) of Employees should be Less than or Equal
to 15000 per month.
Note 6: PF Amount is Tax free funds but withdrawn of PF should after 5 Years. If you want to
withdraw PF amount before 5 years then Income tax apply on your PF amount according slab
rates of Income tax.
Note 7: Interest rates on PF amount is 8 to 9% per years.
Note 8: Facility of DA (Dearness Allowance) is provided only in Government Company sector.
Contribution Rates in PF by Employer & Employee

Contribution By Monthly Percentage Contributed (%)
Employee 12%
Employer 3.67% in PF & 8.33% in EPS
Total 24%
• What is Employee Pension Scheme (EPS)?

Ans - EPS is a scheme governs by the Employee’s Provident Fund Organization (EPFO), which
aims to gives at social security to employees. This scheme is for pension of the employees
working in the organized sector, after their retirement at 58 years. The advantages or benefits of
this scheme are only to be availed if the employee has served for a minimum of (continuous or
non-continuous) 10 years. EPS pension was made available from 1995 and later retained for
existing and newly joined EPF employees since. The scheme starts generating the monthly
pensions once the beneficiary reaches the retirement age of 58. Government has introduced the
EPS Scheme in 1995.
• Eligibility criteria to avail the benefits of EPS Scheme

1. Employee’s earning (Salary) should be Rs 15,000/- or less each month,
2. Employee should be an EPFO member.
3. Employee should be 50-58 years old or above.
4. Employee should have been in the service for minimum 9.5 years, not necessarily
continuously.
Note 1: The employer contributes 8.33% of the employee’s Salary (Basic Pay + DA) towards the
EPS account.

Note 2: If an individual has not finished 10 years but has completed a minimum of 6 months of
service, he or she could withdraw the EPS pension amount if they are unemployed for 2 or more
months.
Note 3: If Employee completed services of 10 years then he can withdraw pension fund by filling
Form 10C.
Note 4: Employee can expect pension amount from Rs 1000 to Rs 7500.
Note 5: Widow, Child, Orphan and more Pension scheme Covered under EPS scheme.
Note 5: As per the law, pensionable service must be rounded to the nearest year. This means
that if the service is 6 months or more than it shall be treated as one year, and if the service is
less than six months those six months will not be counted.
Note 5: If Employee not completed minimum 10 years then he is not eligible for Pension but he
can withdraw his EPS amount. For withdrawing EPS amount without completed 10 years in
services, employee must be completed his minimum 6 month’s duration in services.
Note 6: On EPS amount interest rate is not applied.
Note 7: If a member employee decides to withdraw the pension before reaching the age of 58,
he or she will receive the pension at a reduced rate of 4% per year. This is termed as the
reduced pension.
• Calculation of EPS Amount

Member’ Monthly Pension Amount = (Pensionable Salary*Pensionable Service)/70
Pensionable Salary: The average monthly salary of the employee in the recent 12 months of
service is the pensionable salary.
Pensionable service: Pensionable service refers to the number of years for which contributions
were made to the EPS account.
Example
Suppose contributions to the EPS account have been made for 14 years and 7 months and the
pensionable salary is Rs 15,000.
The monthly pension amount will be calculated as follows:
Member’ Monthly Pension Amount = (15,000 x 15) / 70 = Rs 3,214.28
• What is Employees Deposit Linked Insurance (EDLI) Scheme?

Ans - The Employees Deposit Linked Insurance (EDLI) is an insurance scheme covered by the
Employees’ Provident Fund Organization (EPFO). A nominee or legal heir of an active member of
EPFO gets a lump sum payment of up to ₹ 6 Lakhs in case of death of the member during the
service period. Government has introduced the EDLI Scheme in 1976.

• Eligibility criteria to avail the benefits of EDLI Scheme

1. Employee’s earning (Salary) should be Rs 15,000/- or less each month,
2. Employee should be an EPFO member.
3. Members of the family (Nominees) of Employee nominated under EPF Scheme.
4. Guardian of a minor nominee/family member/legal heir can claim only for EDLI scheme.
Note 1: There is no need for the employees to contribute to EDLI. Their contribution is required
only for EPF.
Note 2: Any employee who has an EPF account automatically becomes eligible for the EDLI
scheme.
Note 3: As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the
Basic salary + DA or a maximum of Rs. 75 per employee per month.
Note 4: There is a bonus of Rs. 1, 50,000/- available under the EDLI.
Note 5: The registered nominee will receive a lump-sum payout in the event of the death of the
insured person. If no nominee or beneficiary is registered, then the amount would be paid to
the legal heir.
Note 6: There is no minimum service period for availing EDLI benefits.
Note 7: for avail EDLI scheme benefits Member of Employee will submit Documents to regional
EPF Commissioner’s Office. Document is such as Death Certificate, Guardianship certificate,
Succession certificate, cancelled cheque with Form 5 IF.
Note 8: Once all the documents are provided and the claim is accepted, the EPF commissioner
must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is
entitled to interest @12% p.a. till the date of actual disbursal.
• Calculation of EDLI Amount

EDLI Amount = Average Monthly Salary of Employee for last 12 months X 30 + 1,50,000
Example
Suppose Average Monthly Salary of a employee for last 12 months is Rs 12000
The EDLI amount will be calculated as follows:
EDLI Amount = (12,000 x 30) + 1,50,000 = Rs 5,10,000
• What is Employees' State Insurance (ESI) Scheme?

Ans – The ESI is a self-financing social security and health insurance scheme for Indian workers.
For all employees earning ₹21,000 or less per month as wages, the employer contributes 3.25%
and the employee contributes 0.75%, total share 4% effective from 1 July 2019. This fund is
managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the

ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and
their family. ESI scheme is a type of social security scheme for employees in the organized
sector.
Note 1: Calculation of ESI percentage on the basis of {Basic Salary + Dearness Allowance (DA) +
Overtime + House Rent Allowance (HRA) + Travel Allowance (TA)} of employee.
• Benefits of ESI card

1. Medical benefit
2. Sickness benefit
3. Maternity benefit for women employee
4. Disablement benefit
5. Dependants benefit
6. Funeral expenses
7. Rehabilitation allowance
• What is National Pension Scheme (NPS)?

Ans - NPS scheme is a voluntary retirement scheme through which you can create a retirement
corpus or your old-age pension. It’s managed by PFRDA (Pension Fund Regulatory and
Development Authority) and available to all Indian citizens (resident or non-resident) between
18 and 65 years old. One can join the NPS as late as when they are 60 years old and continue to
contribute until they are 70 years old. The NPS scheme was launched for government
employees from January 1, 2004, and for all citizens of India from May 1, 2009. The NPS interest
rate usually ranges from 9% to 12% p.a. You can open a NPS account as Online or Offline. Once
the application submitted online for open NPS account after that you will get an Individual PRAN
number.
Note: Permanent Retirement Account Number (PRAN) is a unique 12 digit number that
identifies those individuals who have registered themselves under the NPS. After allocation of
PRAN, the NPS subscribers have an option of receiving a physical copy of their PRAN on a PRAN
card
• Account Types under NPS

1. NPS Tier I Account: - The subscription to NPS commences with the opening of the Tier I account,
which comes with a PRAN (Permanent Retirement Account Number). Your investment in the
NPS Tier I account is locked-in until the age of 60. Before the age of 60, you can make partial
withdrawals for specific purposes; these include children’s wedding or higher studies,
building/buying a house or medical treatment of self/family Under NPS Tier I. When you reach

the maturity age, which is 60 years, you can withdraw the entire corpus from Tier I, of which
only 60% is exempt from tax and remaining 40% is taxable. You are required to make an initial
minimum contribution of Rs 500 under the Tier I account at the time of registration. One needs
to make an annual minimum Rs 1,000 contribution annually under Tier I. Minimum number of
annual contributions is 1 years mandatory.
2. NPS Tier II Account: - You can open the NPS Tier II account only when you already have a Tier I
account. Tier II account is a voluntary account with flexible withdrawal and exit rules. Even
though it works exactly like your NPS Tier I account, there are certain differences. Firstly,
contribution to Tier II NPS has no tax benefits – you can’t claim deductions and on exit, the
corpus is taxed. Unlike the Tier I account, there is no lock-in with savings in the Tier II account.
You can withdraw from the Tier II account at any time. However, in functionality, both Tier I and
Tier II are similar and so is the fund management costs as well as choice of investments. You are
required to make an initial minimum contribution of Rs 1000 under the Tier II account at the
time of registration. One needs to make an annual minimum Rs 250 contribution annually under
Tier II. No any minimum number of annual contributions is mandatory.
• What is Gratuity?
Ans - Gratuity is given by an employer to his employee for the services rendered by him during
the period of employment. A person is eligible to receive gratuity only if he has completed five
years of service with an organization. These five years must be continuous and there should not
be any gap in the services of the employee with that company. Gratuity is usually paid at the
time of retirement, but can be paid earlier as well, in case of unforeseen conditions such as
death of the individual, disabled due to sickness or accident. There is no set percentage of
gratuities an employee can receive. The act 1972 covers employees working in mines,
companies, ports, plantations and other such establishments that have more than 10 people
employees. Both government and non-government employees are entitled to gratuity. However
non-government employees come under the Payment of Gratuity Act (1972),
Note 1: The gratuity amount is totally paid by the employer without any contribution from the
employee.
Note 1: Up to Rs 20 Lacs Gratuity amounts will be exempt from income tax.
Note 3: Gratuity amounts are calculated on (Basic Salary + DA).
Note 4: In the time of Gratuity calculation services completed by employee above 6 moths
assumed it as 1 Years.
Note 5: 4.81% of Basic Salary will be deducted as gratuity
• Eligibility Criteria for Payment of Gratuity?

1. The individual must have resigned from the job after continuous employment with the
organization for five years.
2. He/she should have retired from the job.
3. Gratuity is earned in case of the death of that person or if he/she becomes disabled due to
sickness or accident.
• Calculation of Gratuity
To calculate how much gratuity is payable, the Act has divided non-government employees into
two categories – Employees who come under this Act and employees who are not covered
under the Act.
1. Employees covered under the Act 1972
Gratuity Amount = (15 X Last Drawn Salary X Number of Completed Years of Services)/26
Example
Let us Assume Mr.-X’s Last Drawn Salary was ₹77000. If he Worked for 12 Years 7 months, Then
his Gratuity Will be – (15 X 77000 X 13)/26 = ₹ 577500
2. Employees not covered under the Act 1972

Gratuity Amount = (15 X Last Drawn Salary X Number of Completed Years of Services)/30
Example
Let us Assume Mr.-X’s Last Drawn Salary was ₹77000. If he Worked for 13 Years, Then his
Gratuity Will be – (15 X 77000 X 13)/30 = ₹ 500500
• What is Professional Tax?

Ans - Professional tax is a tax levied at the state level in India. It is collected by the State
Government by every individual who earns a living through mediums like trade, employment, or
professional. Individuals who practice and earn through profession, such as a Company
Secretary, Lawyer, Chartered Accountant, Cost Accountant, Doctor or are a Merchant/
Businessperson are liable to pay professional tax in some states of the country. Professional tax
is payable by private company employees or by people who earn a salary in general. The
maximum amount any State can levy as Professional Tax is restricted to INR 2,500. The
deductions of Professional tax are made under Section 16 of income tax Act, 1961.
Clause (2) of Article 276 of the Constitution of India provides the right to the
State Government for levy and collection of professional tax or tax on the profession.
Professional tax is calculated on Gross Salary of Individual. Professional tax is levied through
predetermined tax slabs and is paid on a monthly Basis. Some of the states which currently
impose a professional tax in India are Maharashtra, Gujarat, Andhra Pradesh, Kerala, Tamil

Nadu, Karnataka, Bihar, Assam, Madhya Pradesh, Telangana, Meghalaya, Odisha, West Bengal,
Sikkim and Tripura.
Some States and Union Territories where Professional Tax is not applicable Such States are
Arunachal Pradesh, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan,
Nagaland, Uttaranchal, Uttar Pradesh, & Union Territories are Andaman & Nicobar, Chandigarh,
Delhi, Pondicherry, Dadra & Nagar Haveli, Lakshadweep, Daman & Diu.
• Professional Tax Slab in Bihar.

Monthly salary Professional Tax per month.
Up to INR 3,00,000. NIL.
From INR 3,00,001 to INR 5,00,000. INR 1,000.
From INR 5,00,001 to INR 10,00,000. INR 2,000.
Above INR 10,00,000 INR 2,500
Note: Every State have own Tax Slab for Professional Tax Calculation.

Implementation of Payroll in Tally Prime
• Process 1: Activation of Payroll
*How to Activate Payroll in Tally Prime?
Step: GOT > F11

Activate the Option Activate the Option “Maintain Payroll” & “Enable Payroll Statutory”,
Like that Following Screenshot:
➢ Press ‘Enter’ to filling all Payroll related details

➢ After Pressing Enter, Payroll Statutory Details screen appear like following screenshot:
➢ Fill all Payroll Statutory Details for Payroll Accounting like,

✓ Provident Fund
• Company code- Enter the company PF Account Number which is allotted by PF
Department after registration in EPFO. Like I enter “DLFBD0012345012”
• Company account Group code – Enter the company account group code which is allotted
by PF Department after registration in EPFO. Like I enter “5987456859”
• Company security code – Enter the company account group code which is allotted by PF
Department after registration in EPFO. Like I enter “123456”

✓ Employee State Insurance

• Company code – Enter the company account group code which is allotted by Employee
State Insurance Corporation (ESIC) after registration in ESIC. Like I enter “89874/568591”
• ESI branch office – Type the name of your nearest ESI branch office. Like I type “Patna”
• Standard working days per month– Enter the number of days to be considered for the
calculation of Monthly Salary to accurate ESI calculation. If this field is left blank, the system
considers the Calendar Period as the basis for calculation. Like I type “26 days”.
✓ National Pension Scheme

• Corporate registration number – Type the Corporate registration number as allotted by
the Central Record keeping Agency (CRA) during registration in NPS. Like I type “985454”.
• Corporate branch office number – Type the Corporate branch office number as allotted
by the Central Record keeping Agency (CRA) during registration in NPS. Like I type
“8532154”.
✓ Income Tax
• Tax deduction and collection Account Number (TAN) –Type 10 digit Alphanumeric TAN
number of Employer for TDS deducted of employee. Like I type “DFGH34545K”.
• TAN registration number –Type TAN registration number which is allotted by NSDL
website in type of applied for TAN number. Like I type “4874457896”
• Income tax circle or ward – Enter the name of the Income tax circle or ward, in which the
employer is associated. Like I type “Patna”.
• Deductor type –Select here Tax Deductor type that means Deductor is a Government (State
& Central) or Other means Non-Government company type. Like I select “Other”
• Deductor branch/division – Enter the name of Deductor branch/division. Like I type
“Boring Road”.
• Name of person responsible – Type Name of Deductor who is responsible for TDS
deduction. Like type “Ajay Mishra”.
• Son/daughter of – Enter the name of Father of Deductor. Like I enter “Dinesh Mishra”.
• Designation – Type Designation or Post name of Deductor in Company. Like I type
“Manager”.
• PAN –Type PAN Card number of Deductor. Like I type “FGHCL3456H”
➢ After filling all Above details in Payroll Statutory details screen, Final screen of shown
like this following screenshot:


➢ Again Press Ctrl+A to save Company feature screen changes
• Process 2: Create Employee Category
Employee Category – This option is useful when your company have more than one
branch. Employee Category provides an additional level of employee classification.
*How to Create Single Employee Category in Tally Prime?

* Step: GOT > Create > Employee Category > Enter
➢ After reaching by follow above step, screen of Single Employee Category will shown like

• Name – Type name of your branch like I type “Patna Head Branch”.
• Allocate Revenue Items – Set to the option ‘Yes’ to allocate revenue related transaction
values for employees created under this category.
• Allocate Non-Revenue Items – Set to the option ‘Yes’ to allocate Non-revenue related
transaction values for employees created under this category.

• After filling all above details screen will shown like that following screenshot:

Note: If any option not shows in Employee Category creation screen then Press F12 &
enable that option.
*How to Create Multiple Employee Categories in Tally Prime?

Step: GOT > Chart of Accounts > Employee Categories > Multi-Master (Alt+H) > Multi
Create
➢ After reaching by follow above step, screen of Multiple Employee Categories will shown
➢ In Multiple Employee Categories creation screen fill all details like in Single Employee
category creation screen and Press Ctrl+A for save.
➢ Practice Exercise for Create Employee category, for You
Name Allocate Revenue Items Allocate Non-Revenue Items

New Delhi Branch Yes Yes
Bangalore Branch Yes Yes
• Process 3: Create Employee Group Master
Part 1: Create Employee Group

Employee Group – Grouping of employees in a single Department of Company.

• How to Create Single Employee Group in Tally Prime?

Step: GOT > Create > Employee Group > Enter
➢ After reaching by follow above step, screen of Employee group will shown like that

• Category – Select Category name from list. like I select “Patna Head Branch”
• Name – Type name of Employee group or Department. Like I type “Sales Department”
• Under – Select Under group for this employee Group type. Like I select “Primary” by
default selection.
• Define Salary Details – Set to this option “No” discus this option in incoming
process of Payroll.

Note: If any option not shows in Employee Group creation screen then Press F12 &
enable that option.
*How to Create Multiple Employee Groups in Tally Prime?

Step: GOT > Chart of Accounts > Employee Groups > Multi-Master (Alt+H) > Multi
Create
➢ After reaching by follow above step, screen of Multiple Employee Groups will shown like

➢ In Multiple Employee Groups creation screen fill all details like in Single Employee
Groups creation screen and Press Ctrl+A for save.
➢ Practice Exercise for Create Employee Groups, for You
Category Name Under Define Salary Details

Patna Head Branch Security Department Primary No
Patna Head Branch Accounts Department Primary No
Patna Head Branch Marketing Department Primary No
Part 2: Create Employee

Employee – A Person name which is work in Company for Salary.
*How to Create Single Employee in Tally Prime?

Step: GOT > Create > Employee > Enter
➢ After reaching by follow above step, screen of Employee will shown like that following
screenshot:
➢ If You want to show more details to filling about employee then Press F12 and all
option like that following screenshot:

➢ Press ‘Ctrl+A’ for save after enable all option then screen will shown like that

• Category – Select Category name from list. like I select “Patna Head Branch”
• Name – Type name of Employee who is in your company. Like I type “Shivam Roy”
• Display name in reports as – This option is print or show in Payslip. leave it as by
default name like I leave it by default name “Shivam Roy”.
• Under – Select Employee group Department name for this employee. Like I select
“Sales Department”
• Date of joining – Enter the Date of Joining of Employee in company for Attendance
making & Salary calculation. Like Enter “1/Jan/2021”.
• Define Salary Details – Set to this option “No” discus this option in incoming
process of Payroll.
• General Information – Fill all common or general details about Employee like
Employee Number, Designation, Function, location, Email Id, Phone No & employee
bank details for Salary Payment etc.
• Statutory details – Fill all Statutory details for PF, ESI and NPS deduction and
Contribution of employee & employer such as PAN No, Adhaar No, UAN No, PF no,
ESI no, PRAN no etc.
• Passport and Visa Details – If Employee belongs to other country then fill its
Passport and VISA details like Passport No, Visa No, Passport and Visa expiry details
etc. if employee not belongs to other country then left it as empty all details. Like I
am not filling it.

• Contract details – If you signed a Contract to your employee then fill all contract
details like Work permit no, Contract start date, Contact expiry date etc. if no
contract then left it as empty all details. Like I am not filling it.
*How to Create Multiple Employees in Tally Prime?

Step: GOT > Chart of Accounts > Employees > Multi-Master (Alt+H) > Multi Create
➢ After reaching by follow above step, screen of Multiple Employees will shown like that
➢ In Multiple Employees creation screen fill all details like in Single Employees creation
screen and Press Ctrl+A for save.
➢ Practice Exercise for Create Employees, for You

Category Name Under Date of Joining
Patna Head office Kamal Raj Sales Department 1/Jan/2021
Patna Head office Mohan Pandey Sales Department 1/Jan/2021
Patna Head office Anil Sharma Sales Department 1/Jan/2021

• Process 4: Create Payroll Master
Part 1: Create Payroll Units (Simple & Compound)

Payroll Units – Measurement of salary on the basis units.
*How to Create Payroll Units in Tally Prime?

Step: GOT > Create > Units (Work) > Enter
➢ After reaching by follow above step, screen of Units will shown like that following
screenshot:

• Type– Select type of units. like I select “simple”
• Symbol – Type symbol name of units. Like I type “Hrs”
• Formal Name – Type Full name of Symbol units like I type “Hours”.
• Number of decimal places – Type decimal places number. it is show digit after
decimal portion. Like, I type “1”.

Note: If any option not shows in Units creation screen then Press F12 & enable that
option.

➢ Practice Exercise for Create Payroll Units, for You
Type Symbol Formal Name Number of Decimal Places

Simple Mints Minutes 0
Compound Hrs of 60 Mints Not Applicable 1
Part 2: Create Attendance/Production Types

Attendance/Production Types – Measurement of salary on the basis Attendance
and Production of employees. Like Present, Absent and overtime basis.
*How to Create Attendance/Production Types in Tally Prime?

Step: GOT > Create > Attendance/Production Types > Enter
➢ After reaching by follow above step, screen of Attendance/Production Types will shown

• Name–Enter the name of Attendance type. like I Enter “Present”
• Under– Select “Primary” here.
• Attendance type – There are four Attendance types here
▪ Attendance/Leave with Pay – Use this Attendance types for record

positive Attendance such as Present.
▪ Leave without Pay – This Attendance types used for record negative
Attendance such as Absent.
▪ Production – This Attendance types used for record extra work done by
Employee such as Overtime.

▪ User Defined Calendar Type – By using this Attendance types we defined

our Attendance format. we must configure the value for the number of days
in each month (period) before recording the attendance details using an
Attendance Voucher. Like 24 days in March, 25 days in February etc.
❖ I select “Attendance/Leave with Pay” in Attendance type section.

Note: If any option not shows in Attendance/production type’s creation screen then
Press F12 & enable that option.
➢ Practice Exercise for Create Attendance/Production types, for You
Name Under Attendance/Production Period Type

Type
Absent Primary Leave without pay Days
Overtime Primary Production Hrs of 60 Mints
My Calendar Primary User Defined Calendar Type Days
• Process 5: Create Pay Heads
Part 1: Create Earning Pay heads

Earning Pay Heads – All facility provides by Employer to his employees as
Earning for them. Like Basic Salary, Conveyance, House Rent Allowance etc.
a) Basic Salary Earning Pay Heads

*How to Create Basic Salary Earning Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter

➢ After reaching by follow above step, screen of Pay Heads will shown like that following
screenshot:

• Name–Enter the name of Earning Pay Heads. like I Enter “Basic Salary”
• Pay head type – In this section different type of Pay heads are listed. Select “Earnings
for Employees” from list to create Earning Pay heads.
• Income type – These are two type of Income gain by employee first fixed and second
Variable.
▪ Fixed – If your employee’s income is fixed in every month then use this income
type. Like Basic Salary of employee is fixed for a particular period.
▪ Variable – – If your employee’s income is vary or changes in every month then
use this income type. Like Overtime Salary of employee is variable in every
hours and Days.
❖ I select “Fixed” from both of them income type.
• Under – Select Indirect Expense because Salary is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” for Earning and Deduction Pay Heads
because Net Salary Affected by earning and Deduction Pay heads.
• Name to be displayed in payslip – This word are shown in payslip of employee. Left by
default name, if want to change this then you can change accordingly you and your
employee understanding of this word. Like I leave as by default name “Basic Salary”.
• Use for Calculation of Gratuity – Set to this option “Yes” for Basic Salary and Dearness
Allowance Pay heads only, because Gratuity calculated on the basis of Basic Salary +
dearness allowance.
• Set/Alter Income tax details – Set to this option “Yes” for income tax deduction from
employee’s Basic Salary in case of Taxable income.

➢ After income tax details set to “Yes” a new window appear in front of you like that
screenshot:
➢ In this window select the appropriate option like,

▪ Income tax Component - Select the required tax component for your Pay
heads like I select “Basic Salary” for Basic Salary form list.
▪ Tax Calculation Basis – in this section two option are available first
1. On Projected Value – If Salary/Income or Earning of employee will not
change according to months or Year then select this option.
2. On Actual Value – If Earning or Income of Employee will change
according to months or year then select this option.
➢ I select “On Projected value”
▪ Deduct TDS across periods – If you’re earning pay Heads is fully taxable then set
to this option “Yes”. I set to this “Yes”.
• Calculation Type – Select required method for Calculation of your Earning Pay heads.
Like I select “On Attendance” from list for Basic Salary.
• Attendance/Leave with Pay – Select “Present” for calculation of Salary because Basic
salary calculate on Positive attendance of Employee.
• Calculation Period – Select required calculation period for calculate Your Earning Pay
Heads like I select on “Months”. Because Basic Salary calculate according to Month wise.
• Basis of Calculation (per day) – Select “As per Calendar Period” for counting days in a
month. Automatically pick days according to days in any particular months.
• Rounding Method – Select any rounding method to round off Decimal portion Salary
amount. Like I select “Normal Rounding”.
• Limit – Type Limit amount of rounding to round off according to limit. Like I type “1”.

➢ Fill all Above details in Pay heads screen to create Basic Salary Earning Pay heads like
b) Conveyance Earning Pay Heads

*How to Create Conveyance Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Conveyance Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Conveyance”
Variable.
▪ Fixed – If your employee’s conveyance is fixed in every month then use this
income type. Like conveyance of employee is fixed for a particular period.
❖ Variable – – If your employee’s conveyance is vary or changes in every month
then use this income type
❖ I select “Fixed” from both of them income type because Conveyance is fix.
• Under – Select Indirect Expense because conveyance is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” because Conveyance Affect net Salary.
• Name to be displayed in payslip – Leave it by default name “Conveyance”.

• Use for Calculation of Gratuity – Set to this option “No” because Gratuity calculated
only on the basis of (Basic Salary + dearness allowance).
employee’s Conveyance.
➢ After income tax details set to “Yes” a new window appear in front of you.
heads like I select “Transport Allowance” for Conveyance form list.
3. On Projected Value – If Conveyance of employee will not change
according to months or Year then select this option.
4. On Actual Value – If Conveyance of Employee will change according to
months or year then select this option.
➢ I select “On Actual Value”
▪ Deduct TDS across periods – Set to this option “Yes” because Conveyance is
taxable.
➢ Fill details in Income tax details like following screenshot:
• Calculation Type – Select “Flat rate” from list for Conveyance because it is decided by
employer to how much paid conveyance amount as Flat value in One Months.
• Calculation Period –select “Months”. Because Conveyance Paid according to Month
wise as a flat value.
• Rounding Method –select “Not Applicable”. Because its value is flat rated.
➢ Fill all Above details in Pay heads screen to create Conveyance Earning Pay heads like

c) Dearness Allowance (DA) Earning Pay Heads

*How to Create DA Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create DA Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Dearness Allowance”
Variable.
▪ Fixed – If your employee’s DA is fixed in every month then use this income type.
Like DA of employee is fixed for a particular period.
▪ Variable – If your employee’s DA is vary or changes in every month then use
this income type
❖ I select “Fixed” from both of them income type because DA is fix.
• Under – Select Indirect Expense because DA is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” because DA Affect net Salary.
• Name to be displayed in payslip – Type name “DA” to print in Pay slip
• Use for Calculation of Gratuity – Set to this option “Yes” because Gratuity calculated on
the basis of (Basic Salary + Dearness allowance).
➢ Set/Alter Income tax details – Set to this option “Yes” for income tax deduction from
employee’s DA
heads like I select “Dearness Allowance (Considered for Retirement
Benefits)” for DA form list.
▪ Tax Calculation Basis – in this section two option are available
o On Projected Value – If DA of employee will not change
o On Actual Value – If DA of Employee will change according to
▪ Deduct TDS across periods – Set to this option “Yes” because DA is taxable.

• Calculation Type – Select “As Computed Value” from list for DA because it is calculated
Percentage on Basic Salary value in One Months.
• Calculation Period –select “Months”. Because DA Paid according to Month wise as a flat
value.
• Rounding Method – Select any rounding method to round off Decimal portion of DA
• Compute – Select “On Specified Formula” Because we Calculate DA Percentage basis on
Basic Salary.
➢ After Selecting “On Specified formula” a new screen appear like that screenshot:
▪ Add Pay Head – Select Basic Salary to calculate DA value on basis of percentage
of basic salary.
• Effective from – Type Date from which you apply DA rate for employee in Tally prime.
Like I type “1/Jan/2021”.
• Slab Type – Select Percentage to Calculate DA
• Value – Type Value of Percentage to calculate DA amount. Like I type “10%”.
➢ Fill all Above details in Pay heads screen to create DA Earning Pay heads like following
screenshot:

d) House Rent Allowance (HRA) Earning Pay Heads

*How to Create HRA Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create HRA Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “House Rent Allowance”
Variable.
▪ Fixed – If your employee’s HRA is fixed in every month then use this income
type. Like HRA of employee is fixed for a particular period.
▪ Variable – – If your employee’s HRA is vary or changes in every month then use
this income type
❖ I select “Fixed” from both of them income type because HRA is fix.
• Under – Select Indirect Expense because HRA is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” because HRA Affect net Salary.
• Name to be displayed in payslip – Type name “HRA” to print in Pay slip
only on the basis of (Basic Salary + Dearness allowance).
➢ Set/Alter Income tax details – Set to this option “Yes” for income tax deduction from
employee’s HRA
heads like I select “House Rent Allowance” for HRA form list.
▪ Tax Calculation Basis – in this section two option are available
o On Projected Value – If HRA of employee will not change
o On Actual Value – If HRA of Employee will change according to
▪ Deduct TDS across periods – Set to this option “Yes” because HRA is taxable.

• Calculation Type – Select “As Computed Value” from list for HRA because it is calculated
Percentage on Basic Salary value in One Months.
• Calculation Period –select “Months”. Because Conveyance Paid according to Month
wise as a flat value.
• Rounding Method – Select any rounding method to round off Decimal portion of HRA
• Compute – Select “On Specified Formula” Because we Calculate HRA Percentage basis
on Basic Salary.
▪ Add Pay Head – Select Basic Salary to calculate HRA value on basis of
percentage of basic salary.
• Effective from – Type Date from which you apply HRA rate for employee in Tally prime.
• Slab Type – Select Percentage to Calculate HRA
• Value – Type Value of Percentage to calculate HRA amount. Like I type “40%”.
➢ Fill all Above details in Pay heads screen to create HRA Earning Pay heads like following
screenshot:

Note: – HRA Calculated “On Specific Formula” That is On Basic Salary, 50%- for in
Metro city and 40% - for in Non-Metro city of Basic Salary
e) Overtime (OT) Earning Pay Heads

*How to Create Overtime Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Overtime Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Overtime”
Variable.
▪ Fixed – If your employee’s overtime is fixed in every month then use this
income type. Like overtime of employee is fixed for a particular period.
▪ Variable – If your employee’s Overtime is vary or changes in every month then
use this income type
❖ I select “variable” from both of them income type because overtime is variable.
• Under – Select Indirect Expense because conveyance is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” because overtime Affect net Salary.
• Name to be displayed in payslip – Type name “OT Pay” to Print in Pay Slip.
employee’s Overtime.
heads like I select Other Earning/Allowance fully taxable” for Overtime form
list.
5. On Projected Value – If overtime of employee will not change according
to months or Year then select this option.
6. On Actual Value – If overtime of Employee will change according to
▪ Deduct TDS across periods – Set to this option “Yes” because Overtime is
taxable.

• Calculation Type – Select “On Production” from list for Overtime because it is decided
on work or Production of Employee.
• Production type –select “Overtime”. Because overtime, Paid according to overtime
attendance type.
• Rounding Method – Select any rounding method to round off Decimal portion of
Overtime amount. Like I select “Normal Rounding”.
➢ Fill all Above details in Pay heads screen to create Overtime Earning Pay heads like
f) Bonus Earning Pay Heads

*How to Create Bonus Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Bonus Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Bonus”

• Pay head type – In this section different type of Pay heads are listed. Select “Bonus”
from list to create Earning Pay heads.
Variable.
❖ I select “variable” from both of them income type because Bonus is variable.
• Under – Select Indirect Expense because Bonus is indirect expense for Employer.
• Affect Net Salary – Set to this option “Yes” because Bonus Affect net Salary.
• Name to be displayed in payslip – Left it by Default name “Bonus” to Print in Pay Slip.
employee’s Bonus.
▪ Income tax Component - tax component already selected for Bonus Pay
heads. Leave as it is.
▪ Tax Calculation Basis – in this section two option are available :
7. On Projected Value – If Bonus of employee will not change according to
months or Year then select this option.
8. On Actual Value – If Bonus of Employee will change according to months
or year then select this option.
▪ Deduct TDS across periods – Set to this option “Yes” because Bonus is taxable.
• Calculation Type – Select “As User Defined Value” from list for Bonus because it is
decided Employer that how much he Paid Bonus Amount to Employee.
• Fill all Above details in Pay heads screen to create Bonus Earning Pay heads like

• Press Enter or Ctrl+A to save this screen.
g) Gratuity Earning Pay Heads

*How to Create Gratuity Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Gratuity Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Gratuity Expense”
• Pay head type – In this section different type of Pay heads are listed. Select “Gratuity”
from list to create Gratuity Pay heads.
➢ After Selection of Gratuity Pay heads a new window appear in front of you like that
screenshot:
➢ This is Gratuity calculation screen fill this screen by this way following screenshot:

➢ After filling it Press enter or Ctrl+A to save

• Under – Select “Provision” because Gratuity is Provision & Current Liabilities for
Employer.
• Set/Alter Income tax details – Set to this option “No” Because Gratuity amount is
exempted in Income tax.
• Rounding Method – Select any rounding method to round off Decimal portion of
Gratuity amount. Like I select “Normal Rounding”.
➢ Fill all Above details in Pay heads screen to create Gratuity Pay heads like following
screenshot:

h) Variable Pay Earning Pay Heads

*How to Create Variable Pay Earning Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create variable Pay Heads like,
• Name–Enter the name of Earning Pay Heads. like I Enter “Variable Pay”
• Pay head type – In this section different type of Pay heads are listed. Select “Variable
Pay” from list to create Earning Pay heads.
Variable.
❖ I select “variable” from both of them income type because Variable Pay is
variable.
• Under – Select “Indirect Expense” because Variable Pay is indirect expense for
Employer.
• Affect Net Salary – Set to this option “Yes” because Variable Pay Affect net Salary.
• Name to be displayed in payslip – Left it by Default name “Bonus” to Print in Pay Slip.
employee’s Variable Pay.
▪ Income tax Component – Select required tax component for Deduct tax
from Variable Pay. Like I select “other Earning/Allowance (Fully Taxable)”.
▪ Tax Calculation Basis – in this section two option are available :
On Projected Value – If Variable Pay of employee will not change
On Actual Value – If Variable Pay of Employee will change according to
▪ Deduct TDS across periods – Set to this option “Yes” because Variable Pay is
taxable.

• Calculation Type – Select “As User Defined Value” from list for Variable Pay because it is
decided Employer that how much he Paid Variable Pay Amount to Employee.
➢ Fill all Above details in Pay heads screen to create Variable Pay Earning Pay heads like
Part 2: Create Deduction Pay heads

Deduction Pay Heads – All amount given by Employer to his employees as Loan
or Advance for them. Like Advance Salary, Canteen Expense, etc.
a) Advance Salary Deduction Pay Heads

*How to Create Advance Salary Deduction Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Advance Salary pay Heads
like,
• Name–Enter the name of Deduction Pay Heads. like I Enter “Advance Salary
Expense”
• Pay head type – In this section different type of Pay heads are listed. Select “Loans and
Advances” from list to create Deduction Pay heads of Advance Salary.
• Under – Select “Loans & Advances (Assets)” because Advance Salary is Loans &
Advances for Employer.
• Affect Net Salary – Set to this option “Yes” because Advance Salary Affect net Salary.

• Name to be displayed in payslip – Left it by Default name “Advance Salary Expense” to

Print in Pay Slip.
• Calculation Type – Select “As User Defined Value” from list for Advance Salary because
it is decided Employer that how much he Paid Advance Salary amount to Employee.
➢ Fill all Above details in Pay heads screen to create Advance Salary Deduction Pay heads
b) Canteen Deduction Pay Heads

*How to Create Canteen Deduction Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Canteen pay Heads like,
• Name–Enter the name of Deduction Pay Heads. like I Enter “Canteen Expense”
• Pay head type – In this section different type of Pay heads are listed. Select “Deduction
from Employee” from list to create Deduction Pay heads of Canteen Expense.
• Under – Select “Indirect Expense” Canteen Expense is Indirect Expense for Employer.
• Affect Net Salary – Set to this option “Yes” because Canteen Expense Affect net Salary.
• Name to be displayed in payslip – Left it by Default name “Canteen Expense” to Print in
Pay Slip.
• Calculation Type – Select “As User Defined Value” from list for Canteen Expense
because it is decided Employer that how much he deduct Canteen amount of Employee.
➢ Fill all Above details in Pay heads screen to create Canteen Deduction Pay heads like

Part 3: Create Statutory Deduction of Employee Pay heads
Statutory Deduction Pay Heads – All amount deducted by Employer to his

employees as tax and fund for them. Like PF, ESI, NPS deduction etc.
➢ Deduction and Contribution rate of Fund for Employee and Employer
Account Head Deduction & Contribution Rate

Employee’s PF Contribution – A/c No: 1 12.00%
Employer’s PF Contribution – A/c No: 1 3.67%
Employer’s EPS Contribution – A/c No: 10 8.33%
EDLI employer Contribution – A/c No: 21 0.50%
ESI employee's contribution rate 0.75%
ESI employer's contribution rate 3.25%
employer's NPS contribution 10-14%
employee's NPS contribution 10-14%
a. PF Statutory Deduction Pay Heads

*How to Create PF deduction Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create PF deduction Pay Heads like,
• Name–Enter the name of statutory deduction Pay Heads. like I Enter “Employee's
PF Deduction @12%”
• Pay head type – In this section different type of Pay heads are listed. Select “Employees'
Statutory Deductions” from list to create Statutory Deduction Pay heads.
• Statutory pay type – In this section different type of Employee Statutory Deduction are
listed. Select “PF Account (A/c No. 1)” from list to create Employee‘s PF Pay heads.
• Under – Select “Current Liabilities” because PF deduction is Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “Yes” because PF deduction Affect net Salary.

• Name to be displayed in payslip – Type name “Employee's PF Deduction @12%” to

print in Pay slip
• Calculation Type – Automatic set “As Computed Value”.
• Calculation Period –Automatic set “Months”.
• Rounding Method – Select any rounding method to round off Decimal portion of PF
• Compute – Select “On Specified Formula” Because we Calculate PF Percentage basis on
(Basic Salary + DA).
▪Add Pay Head – Select Basic Salary and then Dearness Allowance to calculate PF
value on basis of percentage of (Basic salary + Dearness Allowance).
➢ Add Pay heads like that following screenshot:
Note 1:- EPF, NPS & EPS will be calculated on (Basic Salary +DA)
• Effective from – Type Date from which you apply PF rate for employee in Tally prime.
• Slab Type – Select “Percentage” to Calculate PF value
• Value – Type Value of Percentage to calculate PF amount. Like I type “12%” if Salary up
to 15000 and type Flat 1800 if Salary above 15000.
➢ Fill all Above details in Pay heads screen to create PF Deduction Pay heads like following
screenshot:

b. NPS Statutory Deduction Pay Heads

*How to Create NPS deduction Pay Heads in Tally Prime?
NPS @ 10%”
listed. Select “National Pension Scheme (Tier - I)” from list to create Employee‘s NPS
deduction Pay heads.
• Under – Select “Current Liabilities” because NPS deduction is Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “Yes” because NPS deduction Affect net Salary.
• Name to be displayed in payslip – Type name “Employee's NPS @ 10%” to print in
Pay slip
• Rounding Method – Select any rounding method to round off Decimal portion of NPS

• Compute – Select “On Specified Formula” Because we Calculate NPS Percentage basis
on (Basic Salary + DA).
▪Add Pay Head – Select Basic Salary and then Dearness Allowance to calculate
NPS value on basis of percentage of (Basic salary + Dearness Allowance).
• Effective from – Type Date from which you apply NPS rate for employee in Tally prime.
• Slab Type – Select “Percentage” to Calculate NPS value
➢ Value – Type Value of Percentage to calculate NPS amount. Such as type “10%”.
➢ Fill all Above details in Pay heads screen to create NPS Deduction Pay heads like

c. ESI Statutory Deduction Pay Heads

*How to Create ESI deduction Pay Heads in Tally Prime?
ESI Contribution 0.75%”
listed. Select “Employee State Insurance” from list to create Employee‘s ESI deduction
Pay heads.
• Under – Select “Current Liabilities” because ESI deduction is Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “Yes” because ESI deduction Affect net Salary.
• Name to be displayed in payslip – Type name “Employee's ESI Contribution 0.75%“ to
print in Pay slip
• Rounding Method – Select any rounding method to round off Decimal portion of ESI
• Compute – Select “On Specified Formula” Because we Calculate ESI Percentage basis on
(Basic Salary + DA + Conveyance + HRA + Overtime).
▪Add Pay Head – Select All Earning pay heads to calculate ESI value on basis of
percentage of (Basic salary + DA + Conveyance + HRA + Overtime).

Note 2:- ESI will be calculated on (Basic Salary + DA + Conveyance + HRA + Overtime)
• Effective from – Type Date from which you apply ESI rate for employee in Tally prime.
• Slab Type – Select “Percentage” to Calculate ESI value
➢ Value – Type Value of Percentage to calculate NPS amount. Such as type “0.75%”.
➢ Fill all Above details in Pay heads screen to create ESI Deduction Pay heads like following
screenshot:

d. Income Tax Deduction Pay Heads
*How to Create Income Tax deduction Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Income Tax deduction Pay
Heads like,
• Name–Enter the name of statutory deduction Pay Heads. like I Enter “Income Tax”
listed. Select “Income Tax” from list to create Employee‘s Income tax deduction Pay
heads.
• Under – Select “Duties & Taxes” because Income Tax deduction is Tax for Employer.
• Affect Net Salary – Set to this option “Yes” because Income Tax deduction Affect net
Salary.
• Name to be displayed in payslip – Leave auto set name “Income Tax“ to print in Pay
slip

• Calculation Type – Automatic set “As Per Income Tax Slab”.

• Calculation Period –Select “Months” for Calculation of Income Tax as Month-wise.
• Rounding Method – Auto set as “Upward Rounding”
• Limit – Auto set limit as “1”.
• Fill all Above details in Pay heads screen to create Income Tax Deduction Pay heads like
e. Professional Tax (PT) Statutory Deduction Pay Heads

*How to Create Professional Tax deduction Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create Professional Tax deduction
Pay Heads like,
• Name–Enter the name of statutory deduction Pay Heads. like I Enter “Professional
Tax”
listed. Select “Professional Tax” from list to create Employee‘s Professional tax
deduction Pay heads.
• Registration Number – Type Professional tax registration number of your company or
Employer. Like I type “KA/PT/34567345”.

• Under – Select “Current Liabilities” because Professional tax deduction is Current

Liabilities for Employer.
• Affect Net Salary – Set to this option “Yes” because Professional tax deduction Affect
net Salary.
• Name to be displayed in payslip – Type name “Professional Tax“ to print in Pay slip
• Calculation Period – Select “Months” for Calculation of Professional Tax as Month-wise.
• Compute – Select “On Current Earning Total” Because we Calculate Professional Tax
basis on total earning current earning of Employee.
• Effective from – Type Date from which you apply Professional tax rate for employee in
Tally prime. Like I type “1/Jan/2021”.
➢ After typing date, Fill Professional Tax slab rate which is apply in your state. Like I filling
a slab rate which is apply in my state just this following table:
Amount Greater than Amount Up To Slab type Value

0 5000 Value 0
5000 8000 Value 60
8000 10000 Value 100
10000 15000 Value 150
15000 Value 200
➢ Fill all Above details in Pay heads screen to create Professional tax Deduction Pay heads

Part 4: Create Statutory Contribution of Employer Pay heads
Statutory Contribution Pay Heads – All amount Contributed by Employer to his

employees as fund for them. Like EPS, PF, ESI, NPS contribution etc.
a. PF Statutory Contribution Pay Heads

*How to Create PF contribution Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create PF contribution Pay Heads
like,
• Name–Enter the name of statutory deduction Pay Heads. like I Enter “Employer's
EPF contribution @3.67%”
• Pay head type – In this section different type of Pay heads are listed. Select “Employer's
Statutory Contributions” from list to create Statutory Contribution Pay heads.
• Statutory pay type – In this section different type of Employer's Statutory Contributions
are listed. Select “PF Account (A/c No. 1)” from list to create Employer‘s PF contribution
Pay heads.
• Under – Select “Indirect Expenses” because PF contribution is Indirect Expenses for
Employer.
• Affect Net Salary – Set to this option “No” because PF Contribution does not Affect net
Salary.
• Name to be displayed in payslip – Type name “Employer's EPF Contribution @12%”
to print in Pay slip
• Rounding Method – Select any rounding method to round off Decimal portion of PF
• Compute – Select “On Specified Formula” Because we Calculate PF Percentage basis on
▪ Add Pay Head – Select Basic Salary and then Dearness Allowance to calculate PF
value on basis of percentage of (Basic salary + Dearness Allowance).

• Effective from – Type Date from which you apply PF rate for employee in Tally prime.
• Slab Type – Select “Percentage” to Calculate PF value
➢ Value – Type Value of Percentage to calculate PF amount. Like just type “3.67%”
➢ Fill all Above details in Pay heads screen to create PF Contribution Pay heads like
a. NPS Contribution Pay Heads

*How to Create NPS Contribution Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create NPS contribution Pay Heads
like,
• Name–Enter the name of statutory Contribution Pay Heads. like I Enter “Employer's
NPS Contribution @10%”

• Statutory pay type – In this section different type of Employee Statutory Contribution
are listed. Select “National Pension Scheme (Tier - I)” from list to create Employer‘s NPS
contribution Pay heads.
• Under – Select “Indirect Expenses” because NPS contribution is Indirect Expenses for
Employer.
• Affect Net Salary – Set to this option “No” because NPS Contribution does not Affect
net Salary.
• Name to be displayed in payslip – Type name “Employer's NPS @ 10%” to print in Pay
slip
• Calculation Type – Select “As Computed Value” for Calculate NPS on Formula basis.
• Rounding Method – Select any rounding method to round off Decimal portion of NPS
• Compute – Select “On Specified Formula” Because we Calculate NPS Percentage basis
on (Basic Salary + DA).
• Effective from – Type Date from which you apply NPS rate for employer in Tally prime.
• Slab Type – Select “Percentage” to Calculate NPS value
➢ Value – Type Value of Percentage to calculate NPS amount. Such as type “10%”.
➢ Fill all Above details in Pay heads screen to create NPS Contribution Pay heads like

b. ESI Contribution Pay Heads

*How to Create ESI Contribution Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create PF Contribution Pay Heads
like,
ESI Contribution @3.25%”
are listed. Select “Employee State Insurance” from list to create Employer‘s ESI
Contribution Pay heads.
• Under – Select “Indirect Expense” because ESI Contribution is Indirect Expense for
Employer.
• Affect Net Salary – Set to this option “No” because ESI Contribution does not Affect net
Salary.
• Name to be displayed in payslip – Type name “Employer's ESI Contribution @3.25%“
to print in Pay slip
• Calculation Type – Select “As Computed Value” for Calculate ESI on Formula basis.

• Compute – Select “On Specified Formula” Because we Calculate ESI Percentage basis on
(Basic Salary + DA + Conveyance + HRA + Overtime).
▪Add Pay Head – Select All Earning pay heads to calculate ESI value on basis of
percentage of (Basic salary + DA + Conveyance + HRA + Overtime).
Note 2:- ESI will be calculated on (Basic Salary + DA + Conveyance + HRA + Overtime)
• Effective from – Type Date from which you apply ESI rate for employer in Tally prime.
• Slab Type – Select “Percentage” to Calculate ESI value
➢ Value – Type Value of Percentage to calculate NPS amount. Such as type “3.25%”.
➢ Fill all Above details in Pay heads screen to create ESI Contribution Pay heads like

c. EPS Contribution Pay Heads

*How to Create EPS Contribution Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create EPS contribution Pay Heads
like,
EPS Contribution @8.33%”
are listed. Select “EPS Account (A/c No. 10)” from list to create Employer‘s EPS
• Under – Select “Indirect Expenses” because NPS contribution is Indirect Expenses for
Employer.
• Affect Net Salary – Set to this option “No” because EPS Contribution does not Affect net
Salary.
• Name to be displayed in payslip – leave the auto set name “Employer's EPS
Contribution @ 8.33%” to print in Pay slip
• Calculation Type – Select “As Computed Value” for Calculate EPS on Formula basis.
• Rounding Method – Select any rounding method to round off Decimal portion of EPS
• Compute – Select “On Specified Formula” Because we Calculate EPS Percentage basis on

• Effective from – Type Date from which you apply EPS rate for employer in Tally prime.
• Slab Type – Select “Percentage” to Calculate EPS value
• Value – Type Value of Percentage to calculate PF amount. Like I type “8.33%” if Salary
up to 15000 and type Flat 1250 if Salary above 15000.
➢ Fill all Above details in Pay heads screen to create EPS Contribution Pay heads like
d. EDLI Contribution Pay Heads

*How to Create EDLI Contribution Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create EDLI contribution Pay Heads
like,
EDLI Contribution @0.5%”
Other Charges” from list to create Statutory Contribution Pay heads.
are listed. Select “EDLI Contribution (A/c No. 21)” from list to create Employer‘s EDLI

• Under – Select “Current Liabilities” because EDLI contribution is Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “No” because EDLI Contribution does not Affect
net Salary.
• Calculation Type – Automatic set “As Computed Value”
• Rounding Method – Automatic set “Normal Rounding”.
• Limit – Automatic set limit “1”.
• Compute – Automatic set “On PF Gross”
• Effective from – Type Date from which you apply EDLI rate for employer in Tally prime.
• Slab Type – Select “Percentage” to Calculate EDLI value
• Value – Type Value of Percentage to calculate EDLI amount. Such as type “0.50%”.
➢ Fill all Above details in Pay heads screen to create EDLI Contribution Pay heads like
e. EDLI Administration charges Pay Heads

*How to Create EDLI Admin Charge Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create EDLI Admin Charge Pay
Heads like,
• Name–Enter the name of Other charges Pay Heads. like I Enter “EDLI Admin Charge
@0.01%”

Other Charges” from list to create other charges Pay heads.
• Statutory pay type – In this section different type of Employer other charge are listed.
Select “EDLI Admin Charges (A/c No. 22)” from list to create Employer‘s EDLI other
charges Pay heads.
• Contribute minimum of Rs 2/employee – Set to “Yes” this option for contribution
minimum Rs 2 for every employee.
• Under – Select “Current Liabilities” because EDLI charges are Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “No” because EDLI Admin charge does not Affect
net Salary.
• Effective from – Type Date from which you apply EDLI Admin charge rate for employer
in Tally prime. Like I type “1/Jan/2021”.
• Slab Type – Select “Percentage” to Calculate EDLI charges value
• Value – Type Value of Percentage to calculate EDLI amount. Such as type “0.01%”.
➢ Fill all Above details in Pay heads screen to create EDLI Admin charge Pay heads like

f. PF Administration charges Pay Heads

*How to Create PF Admin Charge Pay Heads in Tally Prime?
➢ After reaching by follow above step, fill all details to create PF Admin Charge Pay Heads
like,
• Name–Enter the name of other charges Pay Heads. like I Enter “PF Admin Charge
@1.10%”
Other Charges” from list to create other charges Pay heads.
• Statutory pay type – In this section different type of Employer other charge are listed.
Select “Admin Charges (A/c No. 2)” from list to create Employer‘s PF other charges Pay
heads.
• Under – Select “Current Liabilities” because PF charges are Current Liabilities for
Employer.
• Affect Net Salary – Set to this option “No” because PF Admin charge does not Affect net
Salary.
• Effective from – Type Date from which you apply PF Admin charge rate for employer in
Tally prime. Like I type “1/Jan/2021”.
• Slab Type – Select “Percentage” to Calculate PF charges value
• Value – Type Value of Percentage to calculate PF amount. Such as type “1.10%”.
➢ Fill all Above details in Pay heads screen to create PF Admin charge Pay heads like

• Process 6: Define Salary Details
Part 1: Create/Define Salary Details
Salary details – Salary details use for Define structure of Salary of any persons or group
of Persons or Department.
*How to Create/Define Salary details for Employee in Tally Prime?

Step: - GOT > Alter > Define Salary > Select your “Employee”
➢ Like I select “Shiwam Roy”
➢ After reaching by follow above step, screen of Define Salary details will shown like that
➢ In this Salary details screen fill date and Pay Heads in Sequence for you employee to
Provides. Like,
• Effective from – Type date from which this salary details apply for your employee in
your company.
• Pay Head – Select all Pay heads in sequence which you provide to your employee.
Note: Sequence must be in this way – Earning Pay heads > Employee Deduction Pay
heads > Employee Statutory deduction Pay Heads > Employer Statutory Contribution Pay
Heads > Any Other Pay heads.
• Rate – Only ‘On Attendance, ‘Flat Rate’ and ‘On Production’ calculation Pay heads type
will ask you for Rate or amounts of Monthly basic salary, conveyance, overtime rate per
hours etc.
• Per – It is auto select section not change here only press enter and go forwarded for Pay
heads
• Pay Head type – Auto select don’t change it.
• Computed On – Auto select don’t change it.

Note: If you want to change rate for all Pay heads type in salary details setup screen
then press F12 and Enable the option “Allow to Override Slab Percentage”. Otherwise it
is not necessary to enable.
➢ Fill all required Pay heads type in Sequence for your every employee Such as I set for
employee “Shiwam Roy” like that following Table:
Shiwam Roy (01/01/2021)
Pay Heads Rate
Basic Salary ₹6,000
Dearness Allowance
Conveyance ₹2,000
House Rent Allowance
Overtime 50/Hrs
Variable Pay
Bonus
Gratuity Expense
Canteen Expense
Advance Salary Expense
Income Tax
Professional Tax
Employee's PF Deduction @12%
Employee's NPS @ 10%
Employee's ESI Contribution 0.75%
Employer's EPF contribution @3.67%
Employer's NPS Contribution @10%
Employer's EPS Contribution @8.33%
Employer's ESI Contribution @3.25%
➢ Fill all Pay heads and its rate just like given in above table in Tally prime salary details
setup screen. Like that following screenshot:

*How to Alter or change in Salary details structure of Employee in Tally

Prime?
Step: - GOT > Alter > Define Salary > Select your “Employee”
➢ After selecting your employee or Employee group then you can change Salary amount,
conveyance, Overtime etc.
➢ After changing in salary details Press Ctrl+A to save this changes.
Note: You can also set/configure Salary details for You Employee groups or Department
by following same process of above example for single employee.
➢ Practice Exercise for Define Salary details of employee, for you,

❖ For Anil Sharma
Anil Sharm (01/01/2021)

Pay Heads Rate
Dearness Allowance
Conveyance ₹9,00
Overtime 50/Hrs
Variable Pay
Bonus
Gratuity Expense
Canteen Expense
Income Tax
Professional Tax

❖ For Kamal Raj
Kamal Raj (01/01/2021)

Pay Heads Rate
Dearness Allowance
Conveyance ₹1,400
Overtime 50/Hrs
Variable Pay
Bonus
Gratuity Expense
Canteen Expense
Income Tax
Professional Tax
❖ For Mohan Pandey
Mohan Pandey (01/01/2021)

Pay Heads Rate
Dearness Allowance
Conveyance ₹1,000
Overtime 50/Hrs
Variable Pay
Bonus
Gratuity Expense
Canteen Expense
Income Tax
Professional Tax

• Process 7: Payroll Processing
Part 1: Attendance Voucher
Attendance Voucher – It is used to record Employee’s attendance dates based of

Attendance/Production types (Present or absent or Overtime by days or Hours).
*How to create Attendance or Production voucher in Tally Prime?

❖ Attendance Voucher Manual Entry
Step: - GOT > Voucher > F10 > Attendance
After reaching by follow above step, screen of Manual Attendance voucher will shown
➢ For create attendance voucher for employee as manual, first Press F2 and type last date
of months in which months you create attendance of your employee.
• Date (F2) – Type “31/01/2021”
• Employee Name – Select your employee to create attendance like I select “Shiwam Roy”
• Attendance/Production Type – Select a Attendance/Production type from list to create
attendance like I first create Positive Attendance that is “Present” then “Absent” then
“Overtime”.
• Value – Type number of Days & hours of present, absent and overtime of employee.
➢ Fill details as manual in Attendance voucher like that following screenshot:
➢ Practice exercise to create manual attendance for all employee, for You

Employee Name Present Absent Overtime

Mohan Pandey 25 1 12 Hrs
Anil Sharma 23 3 15 Hrs
Kamal Raj 26 0 18 Hrs
❖ Attendance Voucher Autofill entry

Note: Attendance Autofill mode is useful when our employee is in large
numbers.
Step: - GOT > Voucher > F10 > Attendance > Ctrl+F
➢ After reaching by follow above step, screen of Attendance Autofill Box will shown like
➢ For use to Attendance Autofill voucher fill all option in Autofill box like,
• Type of Transaction – Select “Attendance Autofill”
• Voucher Date – Type last date of month in which you create attendance voucher. Like I
select “31/01/2021”
• Employee Category – If you have a Employee Category then select it. Like I select “Patna
Head office”
• Employee/Group – Here you can create attendance of one employee or whole
Employee groups in once time. Like I select employee group “Sales Department”.
• Attendance/Production Type – Select any Attendance/Production Types from list what
you create. Like I select “Present”.
• Default Value to Fill – Fill any value of your Attendance as default. Like I fill “26”.
• Sort by – Select any one from two methods to arrange employees in series in
Attendance voucher screen.
➢ After filling all above details in Attendance Autofill box screen will shown like that

➢ Press enter to return in attendance voucher screen and change the Attendance value
like this screenshot:
➢ If you want to change default attendance value then you can change.
Note: You can also record Negative Attendance “Absent” and Overtime by follow same
above step for Present attendance.
➢ Press Ctrl+A to save this voucher screen.
Part 2: Payroll Voucher
Payroll Voucher – Payroll Voucher used for make dues of Salary, PF, NPS, ESI of
Employee before Payment of Salary.
Process 1: Create Payable (Dues) Pay Heads
*How to create Payable Pay heads in Tally Prime?

Step: - GOT > Create > Pay Heads > Enter
➢ After reaching by follow above step, fill details for Payable Pay heads,
• Name – Type name of Payable Pay heads like I type “Salary Payable”
• Pay Head Type – Select “Not Applicable”.
• Under – Select “Current Liabilities”

➢ Practice exercise to create Payable Pay heads, for You

Name Pay Heads Type Under
PF Payable Not Applicable Current Liabilities
NPS Payable Not Applicable Current Liabilities
ESI Payable Not Applicable Current Liabilities
PF Admin Expense Not Applicable Indirect Expense
Process 2: Payroll Voucher Processing
*How to create Payroll voucher (Dues) in Tally Prime?

❖ For User Defined Dues
Step: - GOT > Voucher > Ctrl+F4 > Ctrl+F (Autofill)
Or, GOT > Voucher > F10 > Payroll > Ctrl+F (Autofill)
➢ After reaching by follow above step, screen of Payroll Autofill Box will shown like that
➢ Fill all details for User defined Pay Heads type in Payroll Autofill box like,
• Transactions Type – Select “Payroll Autofill”.
• Process for – Select “User Defined” from list of Process
• From (blank for beginning) – Type first date of months in which you create Attendance
of Employee. Like I type “01/01/2021”.
• To (blank for end) – Type last date of months in which you create Attendance of
Employee. Like I type “31/01/2021”.
• Employee Category – Select employee category for your employee. Like I select “Patna
Head Office”
• Employee/Group – you can do process according to a single employee or Employee
groups. I select Employee groups “Sales Department”.
• Sort by - Select any one from two methods to arrange employees in series in Payroll
voucher screen for Process. Like I select “Employee Name”.
• Payroll/Bank/Cash Ledger – Select Payable Ledger from list according process type. Like
I select “Salary Payable” for user defined process type.

• After filling all above details in Payroll Autofill box for User Defined, screen will shown
➢ After filling details in Payroll Box Press Enter then Payroll voucher screen will shown like
this following screenshot:
➢ Fill amounts for all Users defined Pay Heads for Every Employee according to necessity.
➢ Use following Table to fill User define Value in Payroll voucher screen to forwarded
process:
Employee Variable Pay Bonus Canteen Advance Salary
Name Expense Expense
Shiwam Roy 300 500 500 1000
Anil Sharma 200 600 700 1500
Mohan Pandey 500 300 800 1200
Kamal Raj 400 400 600 1300
➢ Filled User defined value in Payroll voucher screen by using above table like following
screenshot:

➢ Press Ctrl+A to Save this screen.
❖ For Salary Dues

➢ Fill all details for Salary dues Process in Payroll Autofill box like,
• Process for – Select “Salary” from list of Process
• Compute Income Tax based on – Select any one of them for income tax calculation. Like
I select “Declared Value”.
Head Office”
I select “Salary Payable” for user defined process type.
• After filling all above details in Payroll Autofill box for Salary, screen will shown like that

➢ After filling details in Payroll Box Press Enter then Payroll voucher auto calculate Salary
payable of Every employee which is shown like this following screenshot:
Note: Every Pay Heads calculated but Income tax not calculate because employee’s
income is not eligible to calculate income tax.
❖ For PF Contribution Dues

➢ Fill all details for PF Contribution dues Process in Payroll Autofill box like,
• Process for – Select “PF Contribution” from list of Process

Head Office”
I select “PF Payable” for user defined process type.
➢ After filling details in Payroll Box Press Enter then Payroll voucher auto calculate PF

❖ For ESI Contribution Dues

• Process for – Select “ESI Contribution” from list of Process
Head Office”
I select “ESI Payable” for user defined process type.
➢ After filling details in Payroll Box Press Enter then Payroll voucher auto calculate ESI

❖ For NPS Contribution Dues

• Process for – Select “NPS Contribution” from list of Process
Head Office”
I select “NPS Payable” for user defined process type.

➢ After filling details in Payroll Box Press Enter then Payroll voucher auto calculate NPS
❖ For PF other Charges Dues Process

Step: - GOT > Voucher > F7 > Ctrl+F (Autofill)
➢ Fill all details for PF Contribution dues Process in Journal Autofill box like,
• Transactions Type – Select “PF Other Charges”.

Head Office”
• Expense Ledger – Select “PF Admin Expenses”.
• Admin Charges (A/c No. 2) – Select “PF Admin Charges @ 1.10%”.
• EDLI Contribution (A/c No. 21) – Select “Employer EDLI Contribution @0.5%”.
• EDLI Admin Charges (A/c No. 22) – Select “EDLI Admin Charge @0.01%”.
➢ After filling all above details in Journal Autofill box for PF other Charges, screen will
➢ After filling details in Journal Autofill Box Press Enter then Journal voucher auto
calculate all PF other Charges of Every employee which is shown like this following
screenshot:

Part 3: Payment Voucher
Payment Voucher – Payment Voucher used for paid dues of Salary, PF, NPS, and ESI of
Employee through Bank or Cash.
*How to Paid our dues by Payment voucher in Tally Prime?

❖ For Salary Payment
➢ Fill all details for Salary Payment Process in Payment Autofill box like,
• Process for – Select “Salary Payment” from list of Process
• Voucher Date – Type current date of Payment voucher entry. Like I type “01/02/2021”.
Head Office”
• Payroll Ledger – Select dues Pay heads ledger. Like I select for Salary Payment “Salary
Payable”.
• Bank/Cash Ledger – Select your Bank or Cash Ledger for payment of Salary to Employee.
Like I select “SBI Bank A/c”.
• Use Mode of Payment/Transaction Type – If you want to select any mode for payment
then set to this “Yes”. But I set to this “No” because I don’t want.
➢ After filling all above details in Payment Autofill box for Salary, screen will shown like
➢ After filling details in Payment Autofill Box Press Enter then Payment voucher auto
calculate Salary amount of Every employee which is shown like this following
screenshot:

❖ For PF Deduction, PF Contribution, PF Admin Charges, EDLI

contribution & EDLI Admin Charges Payment
➢ Fill all details for PF Contribution Payment Process in Payment Autofill box like,
• Process for – Select “PF Challan” from list of Process
Head Office”
• Payroll Ledger – Select dues Pay heads ledger. Like I select for PF Payment “PF Payable”.
• Bank/Cash Ledger – Select your Bank or Cash Ledger for payment of PF to Employee
and Employer. Like I select “SBI Bank A/c”.
➢ After filling all above details in Payment Autofill box for PF & EDLI Contribution, screen
will shown like that following screenshot:
calculate PF amount ,EDLI amount, Admin Charges Amount of Every employee which is

❖ For NPS Payment

➢ Fill all details for NPS Payment Process in Payment Autofill box like,
• Process for – Select “NPS Payment” from list of Process
Head Office”
• Payroll Ledger – Select dues Pay heads ledger. Like I select for NPS Payment “NPS
Payable”.
• Bank/Cash Ledger – Select your Bank or Cash Ledger for payment of NPS of Employee

➢ After filling all above details in Payment Autofill box for NPS, screen will shown like that
calculate NPS amount of Every employee which is shown like this following screenshot:
❖ For ESI Payment

➢ Fill all details for ESI Payment Process in Payment Autofill box like,
• Process for – Select “ESI Challan” from list of Process
Head Office”

• Payroll Ledger – Select dues Pay heads ledger. Like I select for ESI Payment “ESI
Payable”.
• Bank/Cash Ledger – Select your Bank or Cash Ledger for payment of ESI of Employee
➢ After filling all above details in Payment Autofill box for ESI, screen will shown like that
calculate ESI amount of Every employee which is shown like this following screenshot:
❖ For Professional Tax Payment

➢ Fill all details for Professional Tax Payment Process in Payment Autofill box like,
• Process for – Select “Professional Tax Payment” from list of Process

Head Office”
• Payroll Ledger – Select dues Pay heads ledger. Like I select for Professional Tax Payment
“Professional Tax”.
• Bank/Cash Ledger – Select your Bank or Cash Ledger for payment of Professional Tax of
Employee. Like I select “SBI Bank A/c”.
➢ After filling all above details in Payment Autofill box for Professional Tax, screen will
calculate Professional Tax amount of Every employee which is shown like this following
screenshot:

• Process 7: Payroll Reports
Payroll Reports– Payroll Reports is detailed form or reports in which mention all about
employee’s earning, deduction and also contribution by employer.
Tally Prime provides us to show, export and print different type of Payroll
repots.
1. Payslip
Payslip – A Payslip refers to a document issued to an employee, which itemizes each
component of his/ her earnings and deductions and the net amount paid for a given pay
period.
*How to see Payslip for single employee in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Payslip
➢ After reaching by follow above step, screen of Payslip will shown like that following
screenshot:
➢ For showing employee’s Payslip select Employee Category and Name of employee or
employee group name then press enter
➢ If Payslip do not see then Change Period by pressing F2 button after that Payslip of
employee shown like that following screenshot:
➢ If you want to see Payslip as vertical then press “Ctrl+H” and click on “Vertical”.
➢ You can Print, Email or Export this Payslip according to requirement.

2. Pay Sheet
Pay Sheet – A Pay Sheet is a columnar report which displays the Group/Department-
wise break-up of employees’ earnings and deductions for the selected month
*How to see Pay sheet for multiple employee in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Pay Sheet
➢ After reaching by follow above step, screen of Pay Sheet will shown like that following
screenshot:
➢ For showing Multiple employee’s Pay Sheet select Employee Category and employee
group name then press enter
➢ If Pay Sheet do not see then Change Period by pressing F2 button after that Pay Sheet of
employee group shown like that following screenshot:
➢ If you want to change view of Pay Sheet then Press “Ctrl+H” and select your view type.
➢ You can Print, Email or Export this Pay Sheet according to requirement.
3. Attendance Sheet
Attendance Sheet – An Attendance Sheet is a columnar report of employee which
displays the details of Attendance/ Production types with the number of attendance/
production units achieved during a particular month or period.
*How to see Attendance sheet for multiple employee in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Attendance Sheet
➢ If Attendance Sheet do not see then Change Period by pressing F2 button after that
Attendance Sheet for employees shown like that following screenshot:
➢ You can Print, Email or Export this Attendance Sheet according to requirement.

4. Payment Advice
Payment Advice – A Payment Advice is an intimation letter containing the details of
employees with their bank account numbers issued to the banker to transfer a specified
sum (salaries earned) to the employees’ bank accounts.
*How to see Payment Advice for employees in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Payment Advice
➢ If Attendance Sheet do not see then Change Period by pressing F2 button after that
Payment Advice for employees shown like that following screenshot:
➢ You can Print, Email or Export this Attendance Sheet according to requirement.
5. Employees Without E-mail IDs

Employee Without Email IDs – In this section only that employee showed who have
not email IDs.
*How to see employee have no email ID in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Employee Without Email IDs
➢ After reaching by follow above step, screen will showed that employee have no email
IDs like that following screenshot:
➢ If you want fill email ID of employee then you can fill it here.
6. Payroll Statement
Payroll Statement – A Payroll Statement is a columnar report which displays
Group/Department-wise employees’ break-up of selected earnings or deductions, for a
specified month or period.
*How to see Payroll Statement for employee in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Payroll Statement

➢ After reaching by follow above step, screen of Payroll Statement will shown like that
➢ For showing Payroll Statement of employees, select any Pay Head type which you want
to see & then press enter.
➢ If Payroll Statement do not see then Change Period by pressing F2 button after that
Payroll Statement of employee shown like that following screenshot:
➢ You can Print, Email or Export this Payroll Statement according to requirement.
7. Employee Pay Head Breakup

Employee Pay Head Breakup – An Employee Pay Head Breakup report is a columnar
report which displays the Group/Department-wise employees’ breakup of a selected
earnings or deductions pay head for a specified month/period.
*How to see Employee Pay Head wise Breakup reports in Tally Prime?
Step: - GOT > Display More Reports > Payroll Reports > Employee Pay Head Breakup
➢ After reaching by follow above step, screen of Employee Pay Head Breakup will shown
➢ For showing Employee Pay Head wise Breakup reports of, select any Pay Head type
which you want to see & then press enter.

➢ If Employee Pay Head Breakup reports do not see then Change Period by pressing F2
button after that Employee Pay Head Breakup of employee shown like that following
screenshot:
➢ For see in detailed Press enter on Employee groups

➢ You can Print, Email or Export this Pay Head Breakup of employee reports according to
requirement.
8. Pay Head Employee Breakup

Pay Head Employee Breakup – A Pay Head Employee Breakup report displays the
sum of transactions and closing balance of the transacted groups for the selected
employee.
*How to see Pay Head Employee wise Breakup reports in Tally Prime?
Step: - GOT > Display More Reports > Payroll Reports > Pay Head Employee Breakup
➢ After reaching by follow above step, screen of Pay Head Employee Breakup will shown
➢ For showing Pay Head Employee wise Breakup reports of, select any Employee which
you want to see & then press enter.
➢ If Pay Head Employee wise Breakup reports do not see then Change Period by pressing
F2 button after that Employee Head Employee wise Breakup reports shown like that
➢ For see in detailed Press enter on Indirect Expense

➢ You can Print, Email or Export this Pay Head Employee wise Breakup reports according
to requirement.
9. Payroll Register
Payroll Register – A Payroll Register is a month-wise transaction summary report
which displays the number of payroll vouchers passed during a particular month.
*How to see Payroll Register reports in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Payroll Register
➢ After reaching by follow above step, screen of Payroll Register will shown like that
➢ For showing Payroll Register reports of, select any Months which you want to see &
then press enter. after that Payroll Register reports shown like that following
screenshot:
➢ For see in detailed Press enter on Pay Head type

➢ You can Print, Email or Export this Pay Payroll Register reports according to
requirement.
10. Attendance Register

Attendance Register – An Attendance Register is a month-wise transactions summary
report which displays the number of attendance vouchers passed during the month.
*How to see Attendance Register reports in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Attendance Register
➢ After reaching by follow above step, screen of Attendance Register will shown like that

➢ For showing Attendance Register reports of, select any Months which you want to see &
then press enter. after that Attendance Register reports shown like that following
screenshot:
➢ For see in detailed Press enter on Employee name

➢ You can Print, Email or Export this Pay Attendance Register reports according to
requirement.
11. Employee Profile

Employee Profile – Employee Profile Reports shown all about employee details like
Basic information, General information, Bank details, contact details etc.
*How to see Employee Profile in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Employee Profile
➢ After reaching by follow above step, screen of Employee Profile will shown like that
➢ For showing Employee Profile select Employee Category and Name of employee then
press enter after that Profile of employee shown like that following screenshot:

➢ For more detail Scroll down.
12. Employee Head Count

Employee Head Count – Employee Head Count showed all about employee’s
earning, deduction, Net Salary with month wise.
*How to see Employee Head Count reports in Tally Prime?

Step: - GOT > Display More Reports > Payroll Reports > Employee Head Count
➢ After reaching by follow above step, screen of Employee Head Count reports will shown
➢ For more detail Press enter on months.
13. Expat Reports

Expat Reports Expat Reports provide information about regular as well as contract
employees, foreign employees, employees working abroad on a short/ long tenure or on
assignment. They capture all the relevant information in respect of passport, visa and
contract details along with the date of joining, the issuing country and the expiry date.
In Tally Prime, the following Expat reports are available. ‡

1. Passport Expiry ‡
2. Visa Expiry ‡
3. Contract Expiry
*How to see Passport expiry date for foreign employee in Tally Prime?
Step: - GOT > Display More Reports > Payroll Reports > Expat Reports > Passport expiry
➢ After reaching by follow above step, screen of Passport expiry date reports will shown
How to see Visa expiry date for foreign employee in Tally Prime?
Step: - GOT > Display More Reports > Payroll Reports > Expat Reports > Visa expiry
➢ After reaching by follow above step, screen of Visa expiry date reports will shown like
How to see Contract expiry date for foreign employee in Tally Prime?
Step: - GOT > Display More Reports > Payroll Reports > Expat Reports > Contract expiry
➢ After reaching by follow above step, screen of Contract expiry date reports will shown
• Process 8: Payroll Statutory Reports
Payroll Statutory Reports– In Tally Prime you can display, Print and Export statutory
forms and reports for Provident Fund (EPF), Employee State Insurance (ESI) and
Professional Tax (PT) in the prescribed format as required by the statutes.

1. Summary
Summary – It is detailed expiation of Amount Payable and amount paid in respect of
ESI, PF, Professional Tax, NPS and Income Tax of Employee and employer yearly &
monthly basis.
*How to see summary in Tally Prime?

Step: - GOT > Display More Reports > Payroll Statutory Reports > Summary
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Summary
➢ After reaching by follow above step then Change Period by pressing F2 button after that
Summary reports shown like that following screenshot:
2. Provident Fund
PF Form 5– Form 5 is a monthly Return to be submitted with the details of any new
employee covered under EPF.
*How to see PF Form 5 in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > Provident Fund > Form 5
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Provident Fund
> Form 5
➢ After reaching by follow above step then Change Period by pressing F12 button after
that PF form 5 reports shown like that following screenshot:

PF Form 10– Form 10 is a monthly Return to be submitted with the details of

employees leaving the organization.
*How to see PF Form 10 in Tally Prime?

Step: GOT > Display More Report > Payroll Statutory Report > Provident Fund > Form 10
> Form 10
that PF form 10 reports shown like that following screenshot:
PF Form 12A– Form 12A contains the details of the amount contribution remitted
and the date of remittance in respect of EPF, Pension Fund and EDLI Contribution for the
selected month.
*How to see PF Form 12A in Tally Prime?

Step: GOT > Display More Report > Payroll Statutory Reports > Provident Fund > Form
12A

> Form 12A
that PF form 12A reports shown like that following screenshot:
PF Monthly Statement– The PF Monthly Statement provides a summary of

Employee wise monthly PF Employee Deductions and Employer Contribution amounts.
*How to see PF Monthly Statement in Tally Prime?

Step: GOT > Display More Report > Payroll Statutory Reports > Provident Fund >
Monthly Statement
> Monthly Statement
that PF Monthly Statement reports shown like that following screenshot:
PF Form 3A– Form 3A is a annual contribution card to be furnished for each employee
in separate sheets to EPFO.

Step: GOT > Display More Report > Payroll Statutory Report > Provident Fund > Form 3A

> Form 3A
PF Form 6A– Form 6A is a vital form for compiling the annual Provident Fund
statement of a subscriber.

Step: GOT > Display More Report > Payroll Statutory Report > Provident Fund > Form 6A
> Form 6A

Note: You can also Export ECR and E-Return of PF challan via Tally Prime.
For ECR Exporting from Tally Prime
Step: GOT > Display More Reports > Payroll Reports > Statutory Reports > Provident
Fund > E- Challan cum Return (ECR) > Send
For PF E-Return Exporting from Tally Prime

Step: GOT > Display More Reports > Payroll Reports > Statutory Reports > Provident
Fund > E-Return > Select Any Form > Send
3. Employee State Insurance
ESI Form 3– ESI Form 3 is a declaration form which is required to be filed for every
month stating the list of Employees whose remuneration is not exceeding Rs. 10,000/-
per month.
*How to see ESI Form 3 in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > Employee State
Insurance > Form 3
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 3
that ESI form 3 reports shown like that following screenshot:
ESI Monthly Statement– The ESI Monthly Statement provides a summary of

Employee wise monthly ESI Employee Deductions and Employer Contribution amount.
*How to see ESI Monthly Statement in Tally Prime?

Insurance > Monthly Statement

Insurance > Monthly Statement
that ESI Monthly Statement reports shown like that following screenshot:
ESI Form 5– The Return of Contribution in Form 5 is required to be submitted to the

appropriate Branch Office within 42 days of the expiry of the contribution period.

Insurance > Form 5
Insurance > Form 5

ESI Form 6– ESI Form 6 is register of Employees covered under Employees State
Insurance Scheme, containing information regarding the Insurance No., dispensary,
other occupational details, Employer’s Share and month wise (under that particular Half
Year) ESI details (i.e., Gross wages, Number of working days and ESI Contribution for
each employee) should be furnished.

Insurance > Form 6
Insurance > Form 6
Note: You can also Export E-Return of ESI challan via Tally Prime.
For ESI E-Return Exporting from Tally Prime
Step: GOT > Display More Reports > Payroll Reports > Statutory Reports > Employee
State Insurance > E-Return > Select Any Form > Send
4. Professional Tax
Professional Tax Monthly Statement– The Professional Tax Monthly Statement

provides the summary of Employee wise Gross Wages paid, No. of Working Days and
the amount of Professional Tax deducted during the selected month.
*How to see Professional Tax Monthly Statement in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > Professional Tax >
Monthly Statement > Professional Tax
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Professional
Tax > Monthly Statement > Professional Tax

that Professional Tax Monthly Statement reports shown like that following screenshot:
Professional Tax Computation Report– The Professional Tax Computation

Report provides the summary of Amount deducted as Professional Tax from the
Earnings of the Employees exceeding the prescribed threshold limits, in accordance with
the Slab rates applicable for the particular state.
*How to see Professional Tax Computation Report in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > Professional Tax >
Computation Report > Professional Tax
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Professional
Tax > Computation Report > Professional Tax
that Professional Tax Computation Report shown like that following screenshot:

5. National Pension Scheme
NPS Subscriber Contribution Details Reports– In this reports you can see all
about NPS deduction of employee and contribution by employer amount.
*How to see NPS Subscriber Contribution Details in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > National Pension
Scheme > Subscriber Contribution Details
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > National
Pension Scheme > Subscriber Contribution Details
➢ After reaching by follow above step, screen of NPS Subscriber Contribution Details will
➢ For showing NPS Subscriber Contribution Details Reports select Employee Category and
employee group name then press enter
➢ If NPS Subscriber Contribution Details do not see then Change Period by pressing F2
button after that NPS Subscriber Contribution Details of employee group shown like that
.
NPS Summary Reports– This NPS summary reports show all about NPS deduction
and contribution in selected period.
*How to see NPS Summary Report in Tally Prime?

Scheme > NPS Summary

Pension Scheme > NPS Summary
➢ After reaching by follow above step then Change Period by pressing F2 button after that
NPS Summary Report shown like that following screenshot:
PRAN not available– By this you can see that employee who has no PRAN number. If
you want type PRAN no of your employee then you can enter here and save.
*How to see Employee have not PRAN number in Tally Prime?

Scheme > PRAN not available > F8
Pension Scheme > PRAN not available > F8
➢ After reaching by follow above step then shown Employee have not PRAN available like
➢ You can Type PRAN number of your employee if PRAN is not available of your Employee.
6. Gratuity
Gratuity Report– The Gratuity Report displays the provisional liability of an employer
towards his employee in respect of gratuity payable at the time of cessation of
employment either by resignation, death, retirement or termination.

*How to see Gratuity Reports in Tally Prime?

Step: - GOT > Display More Report > Payroll Statutory Report > Gratuity
Or, GOT > Display More Reports > Payroll Reports > Statutory Reports > Gratuity
➢ After reaching by follow above step, screen of Gratuity Reports will shown like that
7. Income Tax
Income Tax– Tax deduction of employee according his taxable amount. It is already
discuss in TDS class. If you can know all about it visit chapter “Tax Deducted at Source
(TDS) in Tally Prime”.

Tally Prime Technical Advantage features
Chapter-7: Technical Advantage features in Tally Prime

Technical Advantage features in Tally Prime ............................................................................................ 409
1. E-mailing in Tally Prime ................................................................................................................. 409
2. Backup & Restore in Tally Prime ................................................................................................... 413
Process 1: Take Backup of your Company data ................................................................................ 413
Process 3: Restore of your deleted Company ................................................................................... 414
3. Export & import Tally Data Tally Prime ......................................................................................... 415
Process 1: Exporting Master and Transactions ................................................................................. 416
Process 3: Importing Master and Transactions ................................................................................ 417
4. Split Company Data in Tally Prime ................................................................................................ 419
Process 1: Verify company data ........................................................................................................ 419
Process 2: Split company data .......................................................................................................... 420
5. Tally Vault Password in Tally Prime .............................................................................................. 420
Process 1: Set TallyVault Password ................................................................................................... 421
Process 2: Change or remove TallyVault Password .......................................................................... 422
6. Security Control in Tally Prime ...................................................................................................... 423
Process 1- Define Users and its work ................................................................................................ 424
Process 2- Define Username and its Password ................................................................................. 427
Process 3- Set Password Policy for Users.......................................................................................... 428
Process 4- Remove & Change Password ........................................................................................... 429
Process 5- Change User..................................................................................................................... 430
7. Tally Prime Important Keyboard Shortcuts................................................................................... 431

Technical Advantage features in Tally Prime
1. E-mailing in Tally Prime
• How to send E-mail from Tally Prime
Step 1: For email sending from Tally Prime configure your email setting by login in your
email ID by app or Google.
✓ After login email id
Process 1: Click on “Dotted Point” like this screenshot:
Process 2: Then click on “Account” like this screenshot:
Process 3: Then click on “Security” like this screenshot:
Process 4: Then Scroll down and Click on “Less Secure app access” like this screenshot:

Process 5: Click on “ Off ” then enable it like that screenshot:
➢ Finally it is enabled after writing “Updated” Now you can go for Home of Your email.
Step 2: Then first you have to reach that Bill or Invoice which you want to email from Tally
Prime. Like, I want to email the sale Invoice to customer.
For Example, I want to email following Sales Invoice:
Process – GOT > Daybook > Select Sales Bill > Enter
➢ For Email this Sales Invoice Follow Step

Step 3: Press “Ctrl+M” on Sales Invoice

➢ After that a new emailing box screen appear like that following screenshot:
Step 4: Click on “Create” option

➢ After clicking on create new screen appear like this following screenshot:
➢ Enter your Email ID/Hotmail ID/Yahoo Mail ID/Outlook ID in Email From section
• E-mail from – Type your email Id like, I type kumarnamanprasad14@gmail.com.
• Show additional options – Set to this option “Yes”. For more details
• Username (for authentication) – It is Autofill by your email ID. Leave it.
• E-mail Server – Select your server type from list like, I select “Gmail”.
• Server address – this Autofill according to server type
• Port Number – It is Autofill according to your server type.
• Use SSL – It is by default Yes” leave it secure sending
• Use SSL/TLS on standard port – It is set to “No” for using Gmail server. If you use other
server like Hotmail, Outlook, Yahoo mail etc then set to option “Yes”
➢ After filling all option press Enter or Ctrl+A

➢ Then you return to email box fill next option like,
• E-mail to – Here, There are two option first “Multiple Address” second “New Address”
 Multiple Addresses – This option is useful when you send email to two more than two
persons or customer. For use this option press “Enter” on it then fill one by one email Id
of your all customers like following screenshot:

➢ After filling all customers’ email ID click on “End of List”.

 New Address – This option is useful when you send email to one person or customer.
For use this option Press “Enter” on It then fill the email of your customer like following
screenshot:
➢ After filling customers’ email ID Press”Enter”.

➢ After filling all above details screen will appear like this screenshot:
Note: If you have a message for customer then type it in message box
➢ Press “Ctrl+A” for emailing
➢ Press pressing “Ctrl+A” a new screen appear like that following screenshot:
➢ If you want Configure you email then Press “C” in this screen.
➢ After press “C” new screenshot appear like this screenshot:

➢ Enable that option which you want to show in email document or PDF like I want to send email
as PDF format then I enables it.
➢ For Enable PDF format emailing, Scroll down then Press Enter on the option “File Format” and
select PDF (Read-Only Document) like that following screenshot:
➢ Press “Enter” on PDF and then Press “Ctrl+A“ to return mailing

➢ After return in email Box screen click on “E-mail” like that following screenshot:
➢ After clicking on “E-mail”. A new screen appear like this following screenshot:
➢ Enter your Email “Password” the Press Enter.

➢ After sometime email are sent to your customer.
2. Backup & Restore in Tally Prime
• Backup – Backup means copy the data from any particular device into other secondary
device like HDD, SDD, Pen drive, Cloud storage (Google Drive, Dropbox) etc.
It is recommended that you take a regular backup of your company data to
any other Secondary device for Protect against your data losses. By using Backup feature in
Tally Prime, you can be prepared for any reverse event, such as a virus attack, a hard drive
crash, and so on.
Process 1: Take Backup of your Company data

• How to take Backup in Tally Prime?
Step: GOT > Alt+Y > Backup

➢ After reaching by follow above step, screen of backup will show like that following
screenshot:
➢ Fill details in this screen for taking backup like,

• Backup Destination Path – It is the Backup Location Path section. In this section the default
Path location of your company data are shown. Select right location for taking backup of
your company data. For selecting Right location to backup Press “Back Space” button then
click on “Select from Drive” or “Specify Path” and specify right location for Backup of Tally
Data. Like I Specify file Path “C:\Users\deepa\Documents\JK’” for Backup.
• Company Name – Select your company which you want take backup. You can take backup
of multiple companies by select it from list. Like I select only one company from list to take
backup “DKP”. Then click on “End of List”.
➢ After filling all above details in backup screen, Then screen will shown like that following
screenshot:
Process 2: Delete your backup Company for Restore

• How to Delete your Backup Company in Tally Prime?
Step: GOT > Alt+K > Alter > Select Your Backup Company > Press Enter on selected company
> Press “Alt+D” to Delete company > Press Two time “Enter” Button to delete
Process 3: Restore of your deleted Company

• How to Restore Company in Tally Prime?
Step: GOT > Alt+Y > Restore
➢ After reaching by follow above step, screen of Restore will show like that following
screenshot:

➢ Fill details in this screen for Restoring deleted Company or Data like,
• Restore Destination Path – It is the Restore Location Path section. In this section the default
Path location of your company data are shown. Select right location where on you have take
backup of your company data from Tally Prime. For selecting Right location Press “Back
Space” button then click on “Select from Drive” or “Specify Path” and specify right location
Path for Restore of your deleted Company Data. Like I Specify file Path
“C:\Users\deepa\Documents\JK’” for Restore.
• Company Name – Select your company name from your selected location what you want to
restore. You can restore multiple companies by select it from list. Like I select only one
company from list to restore “DKP”. Then click on “End of List”.
➢ After filling all above details in Restore screen, Then screen will shown like that following
screenshot:
3. Export & import Tally Data Tally Prime
• Export Data– Export means send the data from any particular Software Application into
another Software application like export tally data into Excel format, PDF format, JPEG
format.
Tally support only XML format data. In Tally we can export our Master (Ledger, Item,
Units, Pay head) and Transactions (voucher entry) to another location.

Process 1: Exporting Master and Transactions

• How to Export Master from Tally Prime?
Step: GOT > Alt+E > Master
➢ After reaching by follow above step, screen of Exporting Master will show like that following
screenshot:
➢ If you want to configure for master exporting related information like File format of Export, Type
of Master of Export. Then Press “C” or click on “Configure” then configure that option what you
need in time exporting.
➢ After clicking on “Configure” new screen appear like this screenshot:
➢ If you want to Export other Master like “Item” then press Enter on “Type of Master” option and
select Type of Master. Like following screenshot:
➢ Select and Press Enter to save this master for exporting

➢ If you want to change File format for Export master then Press Enter on “File format” and Select
your required format. But I leave as a XML format.
➢ After configuration Press “Ctrl+A” to save this setting and return on Export screen. Click on
“Send” in Export screen, like following screenshot:

➢ After clicking on “Send” Export process done and Auto open file location where on You export
tally data like following screenshot:
Note: You can also Export Transactions by follow same above process for Export Master.
For Transaction Export – Step: GOT > Alt+E > Transactions
• Import Data – Import means bring up the data from any particular Software Application
into another Software application like Import data from tally to tally and from Excel to Tally.
Tally support only XML format data. In Tally we can Import our Master
(Ledger, Item, Units, and Pay head) and Transactions (voucher entry) from one company to
other company.
Process 2: Created new Company for importing

• How to Create Company in Tally Prime?
Step: GOT > Alt+K > Create
➢ Fill details in company creation screen and press Ctrl+A.
• After Creating Company
Process 3: Importing Master and Transactions

• How to Import Master in Tally Prime?

Step: GOT > Alt+O > Master

➢ After reaching by follow above step, screen of Importing Master will show like that following
screenshot:
➢ For importing
Data in Tally prime fill details relate to import like,
• File Path – specify your Path location where on you export tally data. For Specify exported
data path Press “Back Space” and click on “Select from Drive” or specify path then Specify
Right Data Path to import. Like I specify Path “C:\Program Files\TallyPrime\Master.xml”.
• File to import (XML) – Select your file name from list in selected Path location in “file path
“option. Like I select “Master” file.
• Behavior of import if master already exist – In this section there are three option are
available :
1. Combine opening Balance – Select it when you want to combine or mix opening
balance of imported master into existing master in your Company.
2. Ignore Duplicate – Select it when you want to ignore duplicate of imported master to`
existing master in your Company.
3. Modify with new date – If you want Import Master or transaction only as new in your
existing company then select it.
➢ I select “Modify with new data”.
➢ After filling all above details in Import screen, screen will shown like that following screenshot:
➢ Press Enter After filling all option

➢ After pressing Enter Your Master or transaction are imported in your company.

4. Split Company Data in Tally Prime
• Split Data– Split means Broken or divided the data in to two more parts. In Tally Prime we
can work many years in a single company by changing only financial year on every Years but
all Years of data are mixed and difficult to analyze, share, Manage and also a large data store
in single so company performance is also slow. So, For Solve this Problem Tally provides us
features which is known as Split Data. By using split company data features we can break or
split the company data into two financial Years or any particular Period and also manage it
as separately.
• Some Points must be cleared before splitting company data

1. Accounts for your unadjusted Forex gains/losses, if any, by recording journal entries.
2. Purchase and Sales bills pending
3. Take a backup of your company data
4. Verify your company data to ensure no any error occur during Splitting company data
Process 1: Verify company data

• How to Verify Company data in Tally Prime?
Step: GOT > Alt+Y > Split > Verify Data
➢ After reaching by follow above step, screen of Verify Data will show like that following
screenshot:
>
➢ Select your company name to verify company data. Like I select “DK Smart” press Enter
➢ After Pressing Enter, Processing done If any error will occur in your company data then error
shown by tally Prime and If no any error will occur in your company data tally Prime shown “No
Error found” like this screenshot:
Note: If Any Error founds then correct it before splitting company data

Process 2: Split company data

• How to Split Company data in Tally Prime?
Step: GOT > Alt+Y > Split > SPlit Data
➢ After reaching by follow above step, screen of Split Data will show like that following
screenshot:
➢ For splitting company data fill following details like,

• Company Name – Select your company name to split data
• Split from – Type date from where you want to split data into two parts like I type date
“01/04/2020” because I have 2 financial years’ data (2019-20 and 2020-21) and I want to
split data into two parts first 01/04/2019 -31/03/2020 and second 01/04/2020 -31/03/2021.
➢ After filling above details press two time Enter to split data
➢ After splitting company data there are two new companies created and data divided in it
according financial year. like following screenshot:
5. Tally Vault Password in Tally Prime
• Tally Vault– Tally Vault is an enhanced security system that allows to encryption of your
company data. Tally Vault password encrypts your company and all the transaction details
and company name. When you next time open your company, you have to first enter this
password to view the company name and other details. You can access this company only if
you know this password. This password cannot be retrieved, if lost.

Process 1: Set TallyVault Password

• How to set TallyVault Password in Tally Prime?
Step: GOT > Alt+K > TallyVault
➢ After reaching by follow above step, screen of TallyVault will show like that following
screenshot:
➢ Fill details to set TallyVault password for your company like,

• Company Name – Select your company name on which you set TallyVault password like I
select “DK Smart”.
• Password – Enter your password like I enter Password “1234”
• Confirm Password – Re-enter your password to confirmation. Like I re-enter Password
“1234”.
➢ After filling above details in TallyVault screen, screen will shown like this following screenshot:
➢ After filling details Press “Enter” then a waning message shown by tally like that following
screenshot:
➢ Read this warning and Press Enter” again then a new warning message shown again by tally like

➢ Press ‘Y’ on the next confirmation screen, if you want to create a copy of the original company
without the password and Press ‘N’ , if You do not create a copy of the original company. Like I
Press “N”.
➢ After Pressing “N” Tally set you TallyVault password and ask you for password for login in your
company. Like this screenshot:
➢ Enter your password to login in your company
➢ This password each times Tally ask you to
open your company
Note: After setting of TallyVault Password Name of Company will not shown only company
code shown in time of open company.
Process 2: Change or remove TallyVault Password

• How to Change or remove TallyVault Password in Tally Prime?
Step: GOT > Alt+K > TallyVault
➢ After reaching by follow above step, screen of TallyVault will show like that following
screenshot:
➢ Fill details to change or remove TallyVault password for your company like,
• Company Name – Select your company name on which you want to change or remove
TallyVault password like I select “DK Smart”.
• Old Password – Enter your old password like I enter Password “1234”
• Password –Enter your new password to Change password. Like I enter Password “1235”. If
you remove TallyVault Password from your company then left it as Empty and Press enter.
• Confirm Password – If you want to change TallyVault Password then this option is activated
automatic for confirmation Password. Like I re-enter our new password “1235”.
➢ Then same message shown which shown in time of setting TallyVault Password. Follow same
process to Change Password.
Note: You can also set TallyVault Password in time of Company creation. For this fill
Password and accept company creation screen by pressing Ctrl+A.

6. Security Control in Tally Prime
Security Control– By Using Security Control, you can provide additional security by adding
a username and password. Only users with these credentials can access your business
information. Moreover, you can create users with different levels of access.
• How to Enable Security Control feature in Tally Prime?

Step: GOT > Alt+K > SEcurity
➢ After reaching by follow above step, screen of Security control will show like that following
screenshot:
➢ Fill details to Enable Security control for your company like,

• Control User Access to Company Data – Set to this option “Yes” for enable the security
control.
• Username (Administrator) – in this section, Type Username for owner or Administrator.
Like I type “Rohan”.
• Password – Type Password to login only as an Administrator. Like I type “1234”.
• Confirm Password – Re-enter your password for confirmation password. Like I type “1234”.
➢ After Enter confirm password new warning message appear like that following screenshot:
• E-mail ID for Browser Access – Type mail ID of Administrator to access browser features.
➢ For Enter E-mail ID, click on “New User” option and fill email ID and Press Enter to save.
• Enable Tally Audit features – Set to this option “Yes” to Audited transaction by
Administrator of his employee.
• Disallow opening in Educational Mode – It set to option “No” for opening in educational
mode. If your tally is License mode then you can set this option to “Yes” for not opening in
educational mode only one in license mode.

➢ Add users after saving Security setting – if you want add user in your company for data access
just saving this security control then Set to this option “Yes”. I don’t add user at this time so I set
to option “No”.
➢ After filling all option in security control, screen of security control shown like following
screenshot:
➢ Press “Enter” to save this screen
Note: You can also enable this security control features in time of company creation. Like
Process 1- Define Users and its work

Users – Users are persons who access the tally data by behalf of owner’s
permission.
• How to define/Create user’s type in Tally Prime?

Step: GOT > Alt+K > User Roles
➢ After reaching by follow above step, screen of User Roles will show like that following
screenshot:

➢ In this screen you can show by default different type of users already made by tally. If want to
create more users according to your necessity then you can create.
➢ For Create More Users, Press “Down Arrow” key and move to the lowest point then type name
Users Type like I type “Manager”. Like following screenshot:
➢ After typing users type Press “Ctrl+A” to save this users
• How to define user’s work in Tally Prime?

Step: GOT > Alt+K > User Roles
➢ After reaching by follow above step, screen of User Roles will show like that following
screenshot:
➢ For Define work of user, select the user type by Pressing “Down Arrow” key. Like I Select
“Manager”. Like following screenshot:
➢ After selecting user Press Enter on “User type”.

➢ After Pressing Enter on User type a new screen appear for define work of users like following
screenshot:

➢ For Define work of user type fill all details like,

• Name of security level – It is by default select leave it as it is.
• Use Basic Facilities of – Select user type from list like I select “Manager”.
• Days allowed for Back Dated voucher – By default this field is set to 0. Enter the required
number of days. Alteration or insertion of backdated vouchers can be done within the given
days from the date of last entry of vouchers for your user. Like I type “10 days” to allow.
• Cut-off date for Back Dated voucher – You can specify the required date. Tally Prime does
not allow the user to record a transaction prior/before to the date mentioned. This option
will be useful in situations where you have completed the audit of your Tally data and do
not want any changes in the data. I like I type “01/05/2021”.
• Set/Alter Rules for Print Before Save –If you want to give permission for your user to the
printing of all the available voucher type or certain voucher type before saving the voucher,
then set to this option “Yes”. Like I set to this option “No”.
• Allow to override tax details – If you want to give permission for your user to
override/change tax details during voucher entry, then set to option “Yes”. Like I set to this
option “No”.
• Exclude On Account from Bill Allocations – If you set this to Yes, then the user will not get
the On Account option in the list of bill-wise reference types. Like I set to this option “Yes”.
• Allow Company to connect – If you want to give permission for your user to connect
company by Tally.Net server then set to this option “Yes”. Like I set to option “Yes”.
• Use Tally.Net Authentication – If you want to use Email-ID of your users as username then
set to option “Yes” otherwise Set to “No”. Like I set to “No”.
• Disallow the following facilities – In this section, select all facilities from list which you want
to don’t provide your users.
• Allow the following facilities – In this section, select all facilities from list which you want to
provide your users.
➢ After, filling all above option screen will shown like following screenshot:

➢ After allow and Disallow facilities for your users Press two times “Ctrl+A” to save this.
Process 2- Define Username and its Password

Username – Username is Login ID name of users who access the tally data by
behalf of owner’s permission.
• How to define username & its password in Tally Prime?

Step: GOT > Alt+K > Users & Passwords
➢ After reaching by follow above step, screen of Username & Password will show like that
➢ For setting Password of your users fill details like,

• User Roles – Select that user from list on which you want to apply password. Like I select
“Manager”.
• Username – Type name of selected user on which you want to apply password. Like I type
“Mohan”.

• Password (if any) – Type Password for select username. Like I type “123”.
• Allow Browser Access – This option is highlighted only when Tally.Net user option is
activated at time of defining work for user.
• Allow Remote Access – This option is highlighted only when Tally.Net user option is
activated at time of defining work for user.
• Allow TDL file – This option is highlighted only when Tally.Net user option is activated at
time of defining work for user.
➢ After filling username and password for user then screen will shown like that following
screenshot:
➢ Press Ctrl+A to save this screen.
Note: You can define Multiple Username and Password in “Users for Company”.
Process 3- Set Password Policy for Users

Password Policy – Password Policy is limited rule about password for User.
Such as Password Strength, Password expiry date etc.
• How to define Password Policy for user in Tally Prime?

Step: GOT > Alt+K > Password Policy
➢ After reaching by follow above step, screen of Password will show like that following screenshot:
➢ For Defining Password Policy for your users fill details like,
• Activate Password Policy – For apply password policy for user set to this “Yes”.
• Minimum Password Strength – If you want to provide password strength for user then you
can provides any as minimum password strength for user. By default its value is 8.

• Specify advance parameters for password strength – If you want to specify advance
parameter for password strength then set to this option “Yes” and specify characters of
alphabetic, numeric and special character in password.
• Password expiry after – Type number of days after password has been expired. By default
its value is 90 Days. If you want to remove expiry date then type “0”. Like I type “30 days”.
• Notify users before password expire – If you want to show warning message by tally before
expiry of password of user then set to option “Yes” and type days before notify days.
• Restrict the use of old password – If you want to apply restriction related to using old
password by user then set to “Yes” and type number of old password to be restricted.
• Change Password on first login – If you provide rights to your user to change password on
first login then set to this “Yes” otherwise set “No”.
• Allow user to change Password – If you provide rights to your user to change password
then set to this “Yes” otherwise set “No”.
➢ After filling and enabling all option screen of password policy will shown like that following
screenshot:
➢ After enabling all option Press Enter or Ctrl+A to save this policy.
Process 4- Remove & Change Password

• How to Change & remove Password in Tally Prime?
Step: GOT > Alt+K > Change Password
➢ After reaching by follow above step, screen of change Password will show like that following
screenshot:

➢ For Change Password fill information like,

• Old Password – Type older password to change or remove password.
• New Password – If you want to change password then Type your new password and If you
want to remove password then not enter anything in this area only press Enter.
• Confirm New Password – Re-enter your new password for change password and if you want
to remove password then not enter anything in this area only press Enter.
➢ After filling information to remove or change password Press Enter or ‘Ctrl+A’.
Process 5- Change User

• How to Change user in Tally Prime?
Step: GOT > Alt+K > Change User
➢ After reaching by follow above step, screen of change user will show like that following:
➢ For Change User fill information like,

• Username – For change user, Press enter on change Username and type username like this
screenshot:
• Password – Type Password of username. Like I type “123”.

➢ After filling information to change user, screen of change user will shown like this following
screenshot:
➢ Press Enter to change user.

7. Tally Prime Important Keyboard Shortcuts
Key Shortcut Function Where does it work

Alt+G/Ctrl+G To Primarily open & switch to Across Tally Prime
a different report, and create
masters and vouchers in the
flow of work.
F3 To switch to another company Masters, Vouchers, and
from the list of open Reports
companies
Alt+F3 To select and open another Masters, Vouchers, and
company located in the same Reports
folder or other data paths
Ctrl+F3 To shut the currently loaded Masters, Vouchers, and
companies Reports
F11 To open Company Features Across Tally Prime
screen
F12 To open the list of Across Tally Prime
configurations applicable for
the report/view
Alt+Y To open the list of actions Across Tally Prime
applicable to managing the
company data
Alt+Z To open the list of actions Across Tally Prime
applicable to sharing or
exchanging your company
data
Ctrl+K To select the display language Gateway of Tally, About Page
that is applicable across all and Reports
screens
Ctrl+W To select the data entry Gateway of Tally, About Page
language that is applicable to and edit Reports
all screens
Alt+I/ Alt+A To insert or Add a voucher in Reports
a report
Alt+2 To create an entry in the Reports
report, by duplicating a
voucher
Ctrl+T To mark a voucher as Post Vouchers
Dated
Alt+D To delete an entry from a Reports
report
Ctrl+R To remove an entry from a Reports
report

Alt+U To display all hidden line Reports

entries, if they were removed
Ctrl+U To display the last hidden line Reports

(If multiple lines were hidden,
pressing this shortcut
repeatedly will restore the
last hidden line first and
follow the sequence)
Shift+Enter To expand or collapse Reports
information in a report
Ctrl+Enter To alter a master during Reports
voucher entry or from
drilldown of a report
Alt+F1/Alt+F5 To view the report in detailed Reports
or condensed format
Space bar To select/deselect a line in a Reports
report
Shift+Up/Down To perform linear Reports
selection/Deselection multiple
lines in a report
Ctrl+Space bar To select or deselect all lines Reports
in a report
Alt+V To open the GST Portal Reports
Alt+C To add a new column Reports
Alt+F12 To filter data in a report, with Reports
a selected range of conditions
Alt+R To retrieve Narration from the Vouchers
previous ledger
Ctrl+D To remove item/ledger line in Vouchers
a voucher
Ctrl+R To retrieve the Narration from Vouchers
the previous voucher, for the
same voucher type.
Alt+S To open the Stock Query Vouchers
report for the selected stock
item
Tab To go to the next input field Masters & Vouchers
Shift+Tab To go to the previous input Masters & Vouchers
field
Alt+4/Ctrl+4 To insert the base currency Masters & Vouchers
symbol in an input field
Page Up To open the previously saved Masters & Vouchers
master or voucher To scroll up
in reports
Ctrl+C/Ctrl+Alt+C To copy text from an input Masters & vouchers
field

Ctrl+V/Ctrl+Alt+V To paste input copied from a Masters & vouchers

text field.
Ctrl+P To print the current voucher Vouchers & Reports

or report
Alt+X To cancel a voucher To cancel Vouchers & Reports
a voucher from a report
Alt+Z To zoom in while on print Vouchers & Reports
preview
F2 To change the date of voucher Masters, Vouchers, and
entry or period for reports Reports
Ctrl+N To open or hide calculator Across Tally Prime
panel
Ctrl+Q To exit a screen or the Across Tally Prime
application
Alt+F4 To quit the application Across Tally Prime
Ctrl+Alt+T To view TDL/Add-on details Across Tally Prime
Ctrl+Alt+B To view the build information Across Tally Prime

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Tally Prime full e-Book Accounting

Based on New Edition and Syllabus for Tally Users

Author-Deepak Prasad Home Page 1

Some salient features of this e-book are:

✓ Stress has been laid on fundamentals.

Suggestions for further Improvement of e-book will be thankfully accepted.

First Edition: March 2021 Author

Author-Deepak Prasad Home Page 2

Author-Deepak Prasad Home Page 3

Chapter-1: Basic Accounting & Inventory in Tally Prime

Create/Alter/Display Vouchers Type in Tally Prime Class-4 ................................................................. 17

Author- Deepak Prasad Page 1

1. Contra Voucher (F4) .............................................................................................................. 25

*What is Tally Prime?

Author- Deepak Prasad Page 2

BASIC TERMINOLOGY FOR ACCOUNTING IN TALLY PRIME

*ACCOUNTING: - Accounting is a process of Identifying, Recording, Summarizing and

NOTE: - 1.✍Trade and Profession are part of Business.

NOTE: - 1.✍ if owner is a single person then called him Proprietor.

NOTE: - 3. If owner is a group of persons or company then called them Shareholders

*PURCHASE RETURN/REJECTION IN/OUTWARD INVOICE: - Purchase return means the

*REVENUE: - It is the income generated from sale of goods or services in market or to

*INCOME: - If we subtracted the expenses from revenue, we get income.

*DISCOUNT: - A discount is a reduction in usual or real price of something.

(2).CASH DISCOUNT: - It is allow at the time of CASH payment.

Author- Deepak Prasad Page 4

(3). COMMUDITY DISCOUNT: - This is quantity based discount.

(4). SPECIAL DISCOUNT: - It is allowed to permanent customer on the special occasion.

*LIABILITIES: - All amounts are payable by a business to any person or outsiders.

Author- Deepak Prasad Page 5

*CAPITAL: - Capital in is the amounts of goods or assets invested in starting time of

(2).WORKING CAPITAL: - These are invested in business day-to-day working time.

ACCOUNTS AND ITS TYPES

NOTE: - 1. Father of Accountancy name is FRA LUCAS PACIALI

There are two types of Accounts:-

(b). ARTIFICIAL A/c:- It is related to only Company, firm, organization.

(a).NOMINAL A/C:- It is related to Income or gain, expenses or Losses.

(b). REAL A/C:- Real account is related to Assets or Properties.

Author- Deepak Prasad Page 6

Rules for Accounting in Tally Prime

Golden Rule/Traditional Rule/English System

Types of Accounts Debit (Dr) Credit (Cr)

• Steps for Entry of Daily Transactions (Journal Entry) in Business.

*Some Solved Questions to Clear concepts of Golden Rule

Ans.:- Step.1:- Find out Affected “Two Accounts” in Transactions

Step.2:- See “Type of Accounts” Which is affected

Cash – Real Account – Comes in – Debit (Dr)

Journal Entry of this above Transaction example

1. Cash Account ……. Dr – ₹ 200000

Q. (2) Goods Purchased from Himanshu ₹ 10000?

Ans.:- Step.1:- Find out Affected “Two Accounts” in Transactions

Step.2:- See “Type of Accounts” Which is affected

Purchase – Nominal Account – Expense– Debit (Dr)

Journal Entry of this Transaction

2. Purchase Account ……. Dr – ₹ 10000

Q. (2) Goods sold to Ritesh ₹ 12000?

Ans.:- Step.1:- Find out Affected “Two Accounts” in Transactions

Step.2:- See “Type of Accounts” Which is affected

Sale – Nominal Account – Income– Credit (Cr)

Journal Entry of this Transaction

1. Ritesh Account ……. Dr – ₹ 12000

NOTE: - 1.✍‘By’ Means ‘Dr’ &‘To’ Means ‘Cr’

*Create, Alter, Open, Shut Company in Tally Prime Class-1

• How to Create Company (Regular) in Tally Prime?