Tally ERP9 Notes

Tally Tutorial
Tally Tutorial provides basic and advanced concepts of Tally. Our Tally tutorial is designed for beginners and
professionals.
What is Tally
o Tally is an ERP accounting software package that is used to record day to day business data of a company. The
latest version of Tally is Tally ERP 9.
o Tally ERP 9 Software is one of the most financial accounting systems used in India. For small and medium
enterprises, it is complete enterprise software. It is a GST software with an ideal combination of function, control,
and inbuilt customisability.
o ERP 9is the best accounting software. This software can integrate with other business applications like Inventory,
Finance, Sales, Payroll, Purchasing, etc.
o Tally software is used for storing all the business transactions of each account in detail. Tally has made
calculations simple. Tally has become part of all businesses.
o Small scale enterprises believe that Tally software carries out efficient business transactions, provides accuracy,
and saves a lot of time.
o Manual calculations are time-consuming; that's why all the organizations use Tally.
o Because of Tally, the chances of error are reduced to a great extent. The Tally software can learn at home or
designated institutes. It is self-explanatory and easy to learn.
o Tally is cost-effective and time-saving. It also ensures accuracy in business management. It enables the
digitalization of bills and signatures, thus staying up-to-date with the latest technology.
o Using the Tally ERP 9 Training, the owner of a small shop can also manage his store, keep records of customer
bills, and manage financial transactions efficiently.
Versions of Tally
o Tally 4.5 was the first version of Tally. It was released in 1990. This software is based on MS-Dos.
o Tally 5.4 was the second version of Tally. It was released in 1996. It was a graphic interface version.
o Tally 6.3 was the third version of Tally. It was released in 2001. This version was window based. It supports
printing and implementing with VAT (Value Added Tax).
o Tally 7.2 was the next version of Tally. It was released in 2005. It was added with new features of the Statutory
complimentary version and VAT rules as par state wise.
o Tally 8.1 was the next version of Tally. It was developed with a new data structure. It was added with new
features of Point of Sale (POS) and Payroll.
o The next version was Tally 9. It was released in 2006. This version was released due to bugs and errors. This
version has maximum features such as TDS, FBT, Payroll, E-TDS filling, etc.
o The latest version of Tally is ERP 9. It was released in 2009. Tally ERP 9 package is offering maximum features for
small to large business industries. It also updates with new features of (Goods & Services Tax) GST.
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Prerequisite
Before learning Tally, you must have the basic knowledge of Accounting.
Audience
Our Tally tutorial is designed to help beginners and professionals.
Problems
We assure that you will not find any problem with this Tally Tutorial. But if there is any mistake, please post the problem
in the contact form.
Features of Tally
The features of Tally are as follows:
o Tally is largely considered the best because it is easy to use, has no codes, robust and powerful, executes in real-
time, operates at high speed, and has full-proof online help.
o Tally is also called multi-lingual tally software because Tally ERP 9 supports multi-languages. In Tally, accounts
can be maintained in one language, and reports can be viewed in other languages.
o Using the Tally, you can create and maintain the accounts up to 99,999 companies.
o Using the feature of payroll, you can automate the employee records management.
o Tally has the synchronization feature, so the transaction which is maintained in multiple locations offices can be
updated automatically.
o Tally is used to generate consolidated financial statements as per the requirements of the company.
o Tally can manage single or multiple groups.
o Tally software is used to handle financial and inventory management, invoicing, sales and purchase management,
reporting, and MIS.
o The feature of Tally customization makes the software suitable for distinctive business functions.
Advantages of Tally
The advantages of Tally are as follows:
Data reliability and security: In Tally, the entered data is reliable and secure. There is no scope of entering the data, after
being entered into the software.
Payroll management: Several calculations that need to be made while disbursing salary to employees. Tally is used to
maintain the financial record of the company that includes net deduction, net payment, bonuses, and taxes.
Management in the banking sector: Banks use Tally to manage various user accounts, and also calculate interests on
deposits. Tally support ensures ease in the calculation and makes banking simpler. Tally Support can make the
calculation easy and banking simpler.
Regulation of data across geographical locations: Tally software is used to manage the data of an organization globally.
Tally can bring together all branches of the company and makes the common calculation for it at large. So no matter which
location a company's employee has access, it will be uniform throughout.
Ease of maintaining a budget: Tally is used to maintain the budget. Tally is used to help the companies to work and
manage expenses by keeping in mind the total budget which is being allotted.
Simple tax returns filing: Tax GST is used to ensure that the company complies with all GST norms. Tax GST takes care of
service tax returns, excise tax, VAT filing, TDS return, and profit and loss statement for all small businesses.
Audit tool for compliance: It acts as an audit tool. It is used to carry out regular audits of companies. It does a thorough
compliance check towards the financial year beginning and ensures that all the monetary transactions are smoothly being
carried out.
Remote Access of Data: In Tally, employees can access the financial data using the unique User ID and password. The
logging and access of data can be done by sitting at the comforts of one's office or house.
Quick Access to Documents: Tally can save all invoices, receipts, bills, vouchers in its archive folder. Using the Tally, we
can quickly access any of the previously stored documents. We can immediately retrieve all the billing related files.
How to Download Tally ERP 9 Software

In this section, we will download the latest version of Tally ERP 9 with GST. The downloading and installation of Tally ERP
9 software is a fast and easy method. Here we have simple steps to download the Tally software and install it on Apple Mac
or Windows OS computer systems for practice.
Tally Solutions offer various products to download for practice and business, but it requires a license. In the trial version,
we can try Tally for free of cost. It offers various products which are as follows:
1. Tally.ERP
2. Tally.Developer
3. Adds on for GST
4. Shoper
5. Tally.Server
Here are the following steps to download Tally:
1. Using the official Website of Tally Solutions, we can download the Tally ERP 9 software. The link to download it is as
follows: https://tallysolutions.com
2. Now choose the options downloads from the Menu.
3. Choose the option Tally.ERP 9.

4. Now choose the Install now or Download for later option to download the latest version of Tally.ERP 9.
5. If we choose the Install Now option, it enables us to install the Tally through online.
6. If we choose the Download for later option, it enables us to download the Tally software into your system. Then we will
install it using the customizing settings.
How to start Tally

When we successfully installed Tally on Windows or Mac OS, we can start Tally ERP 9 by
using one of the following methods.
Now, double click on Tally ERP 9 icon from the computer as follows:
Or we can follow the path: Start > Program > Tally.ERP 9
The following options will appear on the startup screen:

1. Licensing Operations: To activate our license, we will press A from our
keyword.
2. Login as remote Tally.Net user: If we enter a valid Tally.Net User id and
Password of a company that is currently connected, we can login as remotely.
3. Work in Education Mode: For practice purposes, we use work in education
mode. This method is used to work with tally without buying the license with
some restrictions.
4. Quite: To close the Tally, click on the
"Quite" option.
Here we are going to use Tally ERP 9 software for
educational practice purposes. So we will choose the
work in education mode option as follow:
Note: If we want to use Tally for business purposes, we

have to purchase the license and activate it using the
purchased license key.
When we login into Tally, the welcome screen of Tally ERP 9 will
display on the system.
After loading the Tally software on our system, the gateway of tally
displays on the screen as follows:
From the above screen, we are allowed to work with
Tally ERP 9 Software.
How to close Tally ERP 9 Software
After working with Tally ERP 9, we can quit the Tally ERP
9 screen. But we have to close all the screens before shut
down the Tally ERP 9.
To quit Tally software, we can use one of the following
methods as follows:
1. We should Press ESC key from our keyword until
we see the confirmation message QUIT: YES/NO.
To Quit Tally ERP 9, Press Y from our keyword.
2. To quit Tally ERP 9 without a confirmation
message, we should press Ctrl+Q buttons from
Gateway of Tally.
3. Alternatively, we can click on the quit option,
which is available on the top right menu.
Screen Components in Tally

When we start the Tally ERP 9 application, the welcome home screen of Tally
will display on the screen during the Tally software loading on the computer
system as follows:
After Tally software loading, the startup screen of Tally ERP 9 displays on the
screen as follows:
The following components are contained by the

home screen of Tally ERP 9:
1. Title Bar
2. Horizontal Button Bar
3. Close Button
4. Gateway of Tally
5. Buttons Toolbar
6. Calculator area
7. Info Panel
8. Data and Time
Tally Screen Components

Title Bar: This is used to display the Tally
software that we are using.
Horizontal Button Bar: It helps to choose
Keyboard settings, support centre, Language,
Control centre, and Help.
Close Button: Click on this close button or use
ctrl+m to close the Tally window.
Task Bar: It is used to display the task of Tally
ERP 9.
Gateway of Tally: It is used to display the menu, screen, reports.
Info Panel: Information panel is used to display the license details, configuration details, and tally version.
Calculation Area: It is used for calculation functions.
Buttons Tool Bar: It is used to display the buttons that enable for immediate interaction with Tally. It can display only the
buttons that are applicable to the current task.
Date and Time: It is used to display the current date and time.
Tally ERP 9 Configuration

Tally ERP 9 configuration is applicable for all the companies that are located in the Tally data directory. The F12:
Configurations may vary from menu to menu.
For example: If we press F12: Configuration from the voucher screen, then the respective screen displays on the screen.
How to Open Configuration in Tally
Gateway of Tally → Click on F12: Configure or Press Function Key F12
The configuration screen is used to contain multiple settings that help to configure
the required information for voucher entry, printing, banking, master creation, etc.
The following settings are available on the configuration screen:
o General
o Voucher entry
o Printing
o E-mail
o Inventory Info/ Accts
o Numeric Symbols
o Order entry/ Invoices
o Product T & Features
o Data Configuration
o Licensing
o Advanced Configuration
o Banking Configuration
o Payroll Configuration
General: In General Configuration, we can configure the
details of the country, name style, the format of dates,
number format, the configuration of table, import/export
configuration, and other options.
Numerical Symbols: The following configurations are

contained in Numerical Symbols:
o Symbols to use for positive numbers
o Symbols to use for negative numbers
o Symbols to use for debit account
o Symbols to use for credit account
Inventory Info/
Accts: The following
configurations are
contained in
Accounts and
Inventory
information as
follows:
o Master data
o Accounts
o Inventory
Voucher Entry: The

following configuration
details are contained in
Voucher entry as follows:
o Accounts
o Inventory
o Statutory
Order Entry/ Invoice: The

following configurations
are contained in order
entry/ invoice as follows:
o Accounts
o Inventory
o Statutory
Payroll Configuration: The following details are contained in the Payroll

configuration:
o Add notes for employees
o Show statutory details
o Provide passport and visa details
o Provide contract details
o Show resigned/retired employees
o Show employee display name
Banking Configuration: The following details are

contained in Banking configuration:
o Show all unreconciled transactions in BRS till
date
o Remove bank date on altering reconciled
voucher
o New bank statement's location
o Payment instruction's location
o Show details before export/upload
o Allow reset on upload transactions
o New intermediate file's location
o Imported intermediate file's location
Printing: The printing configurations are used to configure the printing
screen for
o Purchase transaction
o Payment Vouchers
o Sales transactions
o Receipt Vouchers
o Journal / Contra
o Debit / Credit note
o Reminding letters
o Confirmation statements
o Payment advice configuration
o Payroll
o Advanced configurations
E-Mail: This configuration is used to setup the e-mail server of the

company.
Data configuration: The data configuration is used to define the

following things:
o Data file's location
o Export file's location
o Load companies on start up
o Select companies to preload on startup
o Language file's location
o Configure file's location
Advanced Configuration: This configuration is

used to define the client or server configuration
like:
o ERP 9 acting as
o Enable OBDC server
o Port number
o Connection Configurations
o Log Configuration
o server 9 configuration
o Net server proxy configuration
o Gateway proxy configuration
Licensing: Licensing configuration is used to update the Tally license:
o Activate License
o Reactivate License
o Configure existing License
o Get a Rental License
After configuring all the required details, we will restart the Tally ERP 9
application to reflect the setting based on the updated configuration.
Accounting Features in Tally ERP 9

In Tally ERP 9, accounting features are one of
the important categories of company features. It
consists of several configurations and
functionalities which are used for accounting
transactions and reports. Accounting features
can be opened by click on option F11: Features
or by pressing function key F11.
Accounting features are divided into 6 sections, which are as follows:

1. General
2. Outstanding Management
3. Cost/ Profit Centre Management
4. Invoicing
5. Budgets/ Scenarios Management
6. Other Features
How to open Accounting Features
In Tally ERP 9, we can use one of the following methods to open accounting features:
o Path: Tally Main > Gateway of Tally > F11: Features > Accounting Features
o Function key: F1: Accounts (Press function key F1 from your keyword)
After executing the accounting features, the following screen will display:
Update the following details on Company Operations Alteration Screen:

General
o Maintain Accounts Only: If we want to maintain inventory transactions, then choose this option.
o Integrate accounts and inventory: If we want to include stock or inventory balances from inventory records,
then choose the Yes option.
o Use income and expense a/c instead of profit & loss a/c: If we want to display the income and expenses
accounts as a menu instead of profit & loss account, then we will choose this option.
o Enable Multi-Currency: If we want to work with multi-currencies, then choose this option.
Outstanding Management
o Maintain bill-wise details:
o Activate Interest calculation:
Cost/Profit centre management
o Maintain Payroll:
o Maintain cost centre:
o User cost centre of job costing:
o Use more than one cost category:
o Use predefined cost centre allocation in transactions:
o Show opening balance for revenue items in reports:
Invoicing
o Enable Invoicing:
o Record purchases in invoice mode
o Use credit and debit notes
o Record debit notes in invoice mode
o Record credit notes in invoice mode
Budgets and Scenario Management
o Maintain budgets and control
o Use optional vouchers and reversing journals
Banking
o Set/alter transaction type
o Set/alter banking type
o Enable cheque printing
o Set/alter post dates transaction features.
Other Features
o Enable company logo
o Enabled zero-valued transactions
o Maintain multiple mailing details for ledgers and company
o Mark changed vouchers
In Tally ERP 9, after enabling all the required accounting features for company, press ctrl+A or press enter to save the
configured data.
Inventory features in Tally ERP 9

In Tally ERP 9, Inventory features consist
of configurations related to inventory
transactions and reports.
Inventory features are subdivided into 7
functions, which are as follows:
1. General
2. Storage and Classification
3. Order processing
4. Invoicing
5. Purchase Management
6. Sales Management
7. Other features
How to start Inventory features
o Path: Tally Main -> Gateway of
Tally -> F11: Features ->
Company Features -> Inventory
Features or click on F2:
Inventory.
How to enable Inventory features

We can enable or disable the options for day to day business transactions using the inventory features. After executing the
inventory features, the following screen will display:
Update the following details on Company Alteration Screen:
General
o Integrate accounts and inventory: If we want to include stock or inventory balances in inventory records, then
choose this option as Yes.
o Enable Zero-value transactions: If we want to allow the zero-value transactions, then choose this option as Yes.
Storage and classification
o Maintain multiple godowns: If we have more than one storage location and godowns for storing the materials,
then enable this option.
o Maintain stock categories: If we want to define or maintain stock categories, then enable this option.
o Maintain batch-wise details: If we want to maintain batch-wise details for stock items, then enable this option.
o Set expiry dates for batches: If we want to maintain the expiry dates for batches, then choose this option.
o Use separate actual and billed quantity columns.
Order Processing
o Enable sales order processing: If we want to define sales orders, then enable this option.
o Enable job order processing: If we want to define the job orders, then enable this option.
o Enable purchase order processing: If we want to define job orders, then enable this option.
Invoicing
o Enable Invoicing:
o Record purchases in invoice mode
o Use separate discount columns in invoice
o Use credit or debit notes:
o Record debit notes in invoice mode
o Record credit notes in invoice mode
Purchase Management
o Track additional costs of purchases
Sales management
o Use multiple price levels
Other features
o Use material in and out vouchers
o Use rejection inwards and outward notes
o Use tracking numbers
o Use cost tracking for stock item
After enabled or disabled the features, press ctrl+A or choose A: Accept to save the details.
Statutory & Taxation in Tally ERP 9

In Tally, the features of statutory and taxation consist of configuration and functions related to statutory compliance for
company. The features of statutory are related to country-specific and depend upon the country.
The following features are available for statutory and taxation:
1. Goods and Service Tax (GST)
2. Excise
3. Value Added Tax (VAT)
4. Tax deducted at Source (TDS)
5. Tax collected at source
In India, Tally supports various taxations, including GST.
How to enable Statutory & Taxation Features
In Tally, we can use the features of Statutory and Taxation by enabling and disabling the option in the company alteration
screen.
We will use the following path and open the statutory and taxation:
Gateway of Tally -> F11: Features -> Company Features -> Statutory Taxation
Update the following details on Company Operations Alteration Screen:

Enable Goods and Services Tax (GST): If we want to use GST tax for company, enable
GST option
Set/alter GST details: If we want to change the GST detail, enable this option.
Enable Value Added Tax (Vat): Now India is following GST tax, so disable this option as
GST tax is followed by Company.
Set/Alter VAT details: If we want to select No, choose this option.
Enable Excise: If we want to use the Excise, enable this option
Set/alter excise details: If we want to change the excise details, enable this option
Enable Service Tax: If we want to use the service tax by company, enable this option
Set/alter service tax details: If we want to alter the service tax details, enable this option
Enable Tax deduction at source: If we want to use TDS, enable this option
Set/alter TDA details
Enable Tax collected at Source: If we want to use TCS, enable this option
Set/alter TCS details
Tax Information:
Income/PAN Tax No: Update the company permanent Income tax number or account number in this field.
Corporate Identify No: Update the CIN number of company in this field.
In Tally ERP 9, after updating all the required details for statutory and taxation, choose A: Accept to save the details.
Create Company in Tally
In this section, we will
learn how to create a
company using a simple
step by step methods.
The first step to get
started is to create a
company. In Tally, the
creation of a company
involves basic
information about the
company, books, and
details of currency.
How to create a
company in Tally
Step 1: In tally, after
login double click on the
create company option
under company
information. The
following navigation
path is used to create
the company in Tally:
Gateway of Tally → Company Info → Create Company
Step 2: The following screen

displays the company
creation window:
Note: Use the Arrow key, Tab

key, Mouse, or Enter key to
navigate between the fields in
Tally.
Step 3: Enter the "Company's
Mailing Name". This is an
important field because it
shows all the printouts.
Step 4: Enter the "Company's
Full Address". This is shown
on all printouts. Thus it is an
important field.
Step 5: Choose the "Name of
the Country" as India from
the given countries list.
Step 6: Choose the "State"
from the given list of states.
Step 7: Update the
"Company's Pin Code", where
it is located.
Step 8: Update the "Telephone Number"/ landline of the company.
Step 9: Update the "E-Mail id" and "Website" of the company.
Step 10: Update the financial year starting date of the company. In India, the financial year of the company starts on
1st April and ends on 31st March.
Step 11: Update the date from which accounting is allowed in Tally. Generally, this date and the starting date of the
financial year are the same. But if the company has been formed on any other date of the year, that date will be mentioned.
For example: If books have been set to begin from 1-Dec 2019, the Tally will not allow the entries for the 1-April-2019 to
30-Nov-2019.
Step 12: If we want to use TallyVault, enter a password. It is a secure feature that encrypts data.
Note: we have to use this feature very carefully. If we forget the password, it may be impossible to recover the data. We can
permanently lose the data.
Step 13: Repeat the password of TallyVault. Tally ERP matches this password with the previously entered password to
ensure that the password we typed previously was the intended password, which means there is no typing error.
Here the bar indicates the password strength. Strong passwords indicate with a green bar. A strong password is better.
How to Alter/ Delete/ Shut Company in

Tally
In this section, we will learn how to alter,
delete, and shut the company in Tally ERP 9
software.
How to Alter Company
After the company creation in Tally, the given
information of the company can alter/ modify/
change as per requirement. Use the following
steps to alter company in Tally:
Step 1: Gateway of Tally → Press
Alt+F3 → Alter
Step 2: Under "List of Selected Company",

select the company name and click on the name of company to alter as shown below:
Step 3: On the screen of company alteration, add

and modify the required details. To save the
details, use the Ctrl+A option. Here we are going
to add contact details of a phone number.
How to delete company

In Tally, if we delete the company, it can remove
the company's complete information from Hard
disk. All the directories and files that are
associated with the company will be permanently
deleted. This information cannot be reserved.
In Tally ERP 9, use the following path to delete
the company:
Gateway of Tally → Alt+F3 → Alter → Alt+D
Step 1: The company information will display on
the screen after using Alt+F3 keys. Here, the
delete option will not be available. Now, click on
the alter option.
Step 2: Now, click on Select Company and then click

Alt+D. After this, click on the YES option to delete the
company.
How to Shut Company in Tally

In Tally, shut a company does not mean that delete a
company, it means close. After working with the
company, choose the "Quit" button to close the present
company or press Alt+F1 if we chose more than one
company.
What are Groups in Tally ERP 9

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
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
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

Tally follows the single leader concept of accounting, and this leads to direct contrast to subsidiary leader accounting.
Using the ledgers or account heads, all the financial entries can be performed. According to the requirement of the
company, we can group all ledgers and financial statements.
How to Create Group in Tally ERP 9

In this section, we are going to learn how to create a group in Tally. We will also see how to alter and display created
groups.
If we are creating groups in Tally for the first time, it is
recommended to enable the following things:
o Allow advanced entries in Master
o Provide advanced information in masters
Use the following path to create groups in Tally
Gateway of Tally → F12: ConFigure → Accts/
Inventory Info → Accounts
How to Create Groups in Tally
In Tally ERP 9, maintain the following Sundry Debtors
Ledgers Accounts:
Main Group: North India Debtors Group and South India
Debtors Group under Sundry Debtors
Sub-Group: Tech solutions grouped and ABC limited
under North India Debtors. Hyderabad Debtors,
Bangalore debtors, Vijayawada debtors under South
India Debtors.
Step 1: In this step, go to the Gateway of Tally and then click on Accounts Info.
Step 2: Choose the option Groups under Accounts Info.
Step 3: In Tally ERP 9, choose the option Create under Single

Group Menu to create a single group.
Step 4: Update the following details on the Group creation screen:

Name: Specify the name of the group and then press enter to continue.
Under: Under List of Groups, choose the group name as Sundry debtors.
After entering the required details, press Ctrl+A: Accept or press enter to save the details.
Also, create other Groups using the above procedure
o South India debtors under Sundry Debtors
o Hyderabad Debtors, Bangalore debtors, and Vijayawada debtors under South India Debtors.
o Tech Solutions or ABC limited under Bangalore Debtors.
AD
Tally is used to create any number of groups under all default groups. Here we have
created two groups under Sundry i.e., North India
Debtors and South India Debtors. Under South India
Debtors, three sub-groups (Hyderabad Debtors,
Bangalore debtors, Vijayawada debtors) created.
How to Display Group in Tally

In Tally ERP 9, after creating the group, we can display
all the created groups in detail. However, users are not
allowed to edit/alter the data in display mode.
Step 1: Use the following path to display groups in
Tally
Gateway of Tally → Accounts Info → Groups
Step 2: Under Single Group, click on the option display
to display groups in Tally.
Step 3: Choose the required group name under List of Groups name and then click
on that particular group to display on the screen as follows:
Step 4: Now the ledger (Bangalore Debtors) display on the screen as:
Step 5: To close the screen, click on Q: Quit.
How to Alter Group in Tally ERP 9

In Tally ERP 9 application, after creating the group,
we can alter the details as per the requirements.
Refer the following steps to modify/alter group in
Tally:
Step 1: Use the following path to alter groups in Tally
Gateway of Tally → Accounts Info →Groups
Step 2: Click on Alter option under Single Group.
Step 3: From the

given search field, we
can search the group
and then click on that
group name to modify the details.
Step 4: Update the required details on the Group Alteration screen and then click on A:
Accept to save the details.
Create Single Ledger in Tally ERP 9

In this section, we are going to create a single ledger in Tally. Here we will create ledger Axis Bank Account under Bank
Account.
The required date for ledger depends upon the features opted by us. The ledger screen would provide minimal
information if the settings of accounting features (F11) of the company were "No" for all options.
Tally automatically creates two ledger accounts, i.e., Profit & Loss account and Cash in Hand account. As per the
requirements of the organization, we can create the ledger accounts. In Tally, we cannot create another profit & loss
account. We can create any number of cash accounts with different names.
How to Create Ledger Account in Tally

Step 1: Use the following path to create ledger accounts in Tally
Gateway of Tally → Accounts Info → Ledgers → Single Ledger → Choose Create
Step 2: Click on Accounts Info under Gateway of Tally screen.
Step 3: Choose Ledger option under Account Info. Step 4: Under Single Ledger, choose the option Create
Step 5: Update the following details on Ledger creation screen.

Name: Specify the unique name of the ledger account.
Under: Under List of Groups, choose the group name that pertains to the ledger account.
In Tally, choose the "Yes" option under Accept to save the configured details.
How to Display Single Ledger in Tally

In Tally, after the creation of a single ledger account, we can view the details of the ledger
by choosing the display option.
Refer the following steps to show how to display single ledger:
Step 1: Use the following path to display the single ledger in Tally
Gateway of Tally → Accounts Info → Ledgers → Single Ledger → Choose Display
Step 2: Under List of Ledgers, choose the ledger account.
Step 3: Now, the following screen shows the complete details of ledger accounts.
How to Alter Single ledger in Tally

Step 1: Use the following path to alter the single ledger in
Tally
Gateway of Tally → Accounts Info → Ledgers → Single
Ledger → Choose Alter
Step 2: Under the List of Ledgers, choose the ledger

account option.
In Tally ERP 9, now modify/

alter the required details for
ledger account. To save the
changed details, click on A:
Accept.
Create Multiple Ledgers in Tally

In this section, we are going to see how to create multiple ledgers in Tally.
Step 1: Go to Gateway of Tally and then Step 2: Choose the option Ledgers
choose Accounts Info as follows: under Accounts Info.
Step 3: Under multiple ledgers, click on Create option to create multi ledgers in Tally.
Step 4: Enter the following details under a multi ledger creation screen.
Under Group: Under the list of Groups, choose the Bangalore Debtors. However, we can search the group by entering the
group name under the group text field.
Step 5: Update the following details under
the Group Bangalore Debtors screen.
1. Name of Ledgers: Enter the
ledger name that we like to create
in Tally.
2. Under: The under group field will be

automatically filled by Tally as Bangalore
Debtors.
3. Press Enter to continue after
entering the details. We will get a message
as Accept: Yes or No. To accept the updated
details in Tally, choose "Yes".
Now we have successfully created multiple ledgers in Tally ERP 9.
How to Display Multiple Ledgers in Tally
In Tally application, after ledgers are created,
we can check multiple ledgers by choosing the
display option.
Step 1: Use the following path to display
multiple ledgers.
Gateway of Tally → Accounts Info → Ledgers
→ Multiple Ledgers (Display)
Step 2: Under the List of Groups, choose the

group name as "Bangalore Debtors".
Step 3: Now, the multi ledgers screen displays, as shown below.
Note: Users are not allowed to modify any

changes in this display mode. For this,
users are required to choose the alter
option.
How to Alter Multi Ledgers in Tally

Use the following step to alter the multi
ledgers in Tally.
Step 1: Using the following path, we can
alter the change the details as per the
requirements:
Gateway of Tally -> Accounts Info -> Ledgers -> Multiple Ledgers -> Choose Alter
Step 2: Choose the required group name under the list of the
groups.
Step 3: We can update the following details on multi ledgers
alteration screen:
o Add or delete the ledgers
o Opening Balance - Dr/Cr
In Tally, to save the details, press Enter and then Accept.

How to Create Cost Centre in Tally ERP 9
In this section, we are going to learn how to create, display, and alter the cost
centre in Tally.
Enable Cost Centre in Tally
To enable a cost centre in Tally ERP 9, make the following configuration settings.
By enabling a cost centre in accounting features, helps us to create cost centres
under account info. Use the following step to enable the cost centre.
Step 1: Use the following path to enable cost centre in Tally:
Gateway of Tally → F11: Features → F1: Account Features
Step 2: Enable the option to Maintain Cost Centre as "Yes".
Step 3: In Tally ERP 9, click A: Accept to save the changed details.
How to Create Cost Centre

Use the following path to create cost centre
in Tally:
Gateway of Tally → Account Info → Cost
Centres
Step 1: Click on Gateway of Tally and then
click on Account Info.
Step 2: Under Account Info, click on the

"Cost Centre" option.
Step 3: Now, click on the option

'Create' under Single Cost Centre.
Note: Choose the option 'Create' under multiple cost centres if we want to create multiple cost centre in Tally.
Step 4: Update the following details on
cost centre creation screen:
Category: Tally can automatically create
primary cost centre. The primary cost
centre is the default cost centre until we
create a new one. Choose Primary cost
centre as category.
Name: Specify the name of the cost
centre.
Alias: We can call the cost centre using
the other name like Branch, Head Office,
etc.
Under: From the list of cost centres,
update the parent cost centre for this cost
centre.
After entering the required details for the

creation of the cost centre, choose option
A: Accept to save the details.
How to Display Single Cost Centre

Use the following path to display a single cost
centre in Tally:
Gateway of Tally -> Accounts Info -> Cost
Centres -> Single Cost Centre -> Display
Step 1: On the screen of the cost centre, choose

the cost centre under the list of cost centres.
Step 2: Now, the cost centre will display with details.
Step 3: Users are not allowed to modify the cost centre details
on display mode.
How to Alter Single Cost Centre

Use the following path to alter single
cost centre in Tally ERP 9:
Gateway of Tally -> Accounts Info ->
Cost Centres -> Single Cost Centre ->
Alter
Step 1: To edit the details choose the

cost centre under the list of cost
centres.
Step 2: On the cost centre alteration screen, choose A: Accept to save the updated details.
Stock Group in Tally

In Inventory, the stock groups are similar to groups in accounting master. In Tally, the stock group is used to help in the
classification of stock items according to their behavior. In Tally, the grouping of stocks enables us to identify and report in
a statement as per stock wise. Under stock groups, the stocks can be grouped according to their product type,
characteristics, and brand, etc.
Example of Stock Groups

Suppose Javatpoint sells Music systems, PCs and Laptops, the following structure shows the stock items that being sold.
Here, all the PC's and laptop are grouped under computers.
The computer of the main stock group will be created in Tally.
Group A Computers
Here, music products are grouped under the music system.
Music system of the main stock group will be created in Tally.
A1 - Lenov0 13 Inch Laptop - A1a
Lenovo 16 Inch PC - A1b Group B - Music System
A2 - Dell Dell 13inch Laptop - A2a B1 - Sony Blue Ray Player - A2a
Dell 16 inch Pc - A2b DVD player - B2b
A3 - HP HP 13inch Laptop - A3a
HP 16 inch PC - A3b
How to Open Stock Groups in Tally
Step 1: Go
to Gateway
of Tally &
Inventory
Info
After
opening the
Tally
application,
choose the
inventory
info under
the master
tab.
Step 2: Display
the list of
Inventory
Masters under
Inventory
Information,
where we can
maintain
inventory
master data.
1. Stock groups 2. Stock Categories 3. Stock items 4. Unit of Measures

5. GoDowns 6. Voucher Types 7. Copy Allocation details
In Tally, to work with stock groups, click on the option stock groups.
Step 3: It displays the two types of stock groups under stock groups.
1. Single Stock Group
2. Multiple Stock Groups
In Tally, we are allowed to create, modify, and display single and multiple stock groups.
In a stock group, we can find the total sales, as per the brand-wise at a particular period of time.
Creating Single Stock Group in Tally

In Tally, Stock Groups can classify the products according to their common behavior. Use the following navigation paths to
create a single stock group in Tally ERP 9:
Gateway of Tally → Inventory Info → Stock Groups → Single Stock Group → Create
In Tally ERP 9, use the following step by step procedure for the creation of a single stock group.
Step 1: Choose Inventory Info under the Gateway of Tally.
Step 2: In the next section, choose Stock Groups under Inventory Info.
Step 3: Choose 'Create' option under a single stock group to create a single stock group as per the company requirement.
Step 4: Enter the following details in the next screen "Single Stock Group Creation".
1. Name: Specify the stock group name that has to be created in Tally. In the following image, we have given
Television as a new single stock group.
2. Under: In this, choose the stock group as primary.
3. Should quantities of items to be added: In this, choose Yes option.
Choose A: Accept after entering all the required details to accept the updated details.
In Tally, we have successfully created a single stock group.
Creation of Multiple Stock Groups in Tally
The next step is the creation of multiple stock groups in SAP. In Tally, use the following navigation path to create multiple
stock groups:
Gateway of Tally → Inventory Info → Stock groups → Multiple stock groups → Create
In Tally ERP 9, follow the below steps for the creation of multiple stock groups.
Step 1: Choose the option Inventory Info under the Gateway of Tally screen.
Step 2: Under Inventory Info, choose the Stock Groups option.
Step 3: It displays two types of groups under Stock Groups.

1. Single stock group
2. Multiple stock groups
In Tally, we already created single stock groups. Here we will create multiple stock groups. Now, under multiple stock
groups, choose the 'Create' option.
Step 4: Under the List of Groups, we need to choose the Group. Here we have given Television as under Group.
Step 5: Now, we will update the Stock Group, as shown below.
Stock Group Name Under Should Quantities of Items be Added
Sony Tv Television Yes
Samsung Tv Television Yes
Xiami Tv Television Yes
Philips Tv Television Yes
In Tally, after maintaining the required details for the creation of multiple stock groups, choose A: Accept to save the
configured details.
Create Stock Category in Tally

In Tally, a stock category can be created by using two methods, as shown below:
1. Single Stock Category
2. Multiple Stock Category
We need to set 'Yes' before the creation of stock category in Tally to maintain Stock Categories in F11: Features. Use the
following path to create a stock category:
Gateway of Tally → F11: Features → Inventory Features
Creation of Single stock category in Tally
Step 1: Go to Gateway of Tally and then choose Inventory Info option.
Step 2: Choose the Stock Categories option under Inventory Info to create a stock category in Tally.
Step 3: Choose the 'Create' option under the Single stock category to create a single stock category in Tally.
Step 4: Update the following details in the next screen 'Sintock creation'.
1. Name: Enter the stock category name that has to be created in Tally. In the given screenshot, we have given the
name of a stock category as '32 Inches TV'.
2. Under: In this, choose the stock group as Primary.
3. Should quantities of items to be added: In this, choose Yes option.
Choose A: Accept after entering all the required details to accept the updated details.
In Tally, we have successfully created a single stock group.
Creation of Godowns/ Location in Tally

Godowns is a kind of location where stock items are safely stored. As per Godowns, the reports of stock items can be
prepared in Tally. Using the two methods, we can create Godowns in Tally:
1. Single Godowns
2. Multiple Godowns
We need to set 'Yes' before the creation of multiple Godowns in Tally to maintain multiple Godowns in F11: Features. Use
the following path to create Godowns/ Location in Tally:
Gateway of Tally → F11: Features → Inventory Feature
How to Create Single Godowns
Step 1: Choose the option Inventory Info under Masters.
Step 2: Choose GoDowns option under Inventory Info to create Godowns in Tally as per company requirements.
Step 3: Choose the "Create" option under Single Godowns to create Godowns in Tally.
Step 4: Enter the following details in the next screen GoDown creation.
o Name: Specify the Godown name. We can enter the Godown name as the name of location where it has been
located.
o Under: Specify under which godown comes.
o We will press Enter after entering the details and to accept the configured Godown in Tally, press 'Y' or Enter.
In the above image, we created a new Godown with the name "Amravathi" under Primary.
How to Create Multiple Godowns in Tally
Now we will learn step by step process that how to create multiple Godowns in Tally.
Step 1: Use the following navigation path to create multiple Godowns:
Gateway of Tally → Inventory info → Godowns and click on create under multiple Godowns.
Step 2: Enter the following details in the next screen Multi Godown Creation.
o Name: Specify the name of Godown/ name of Location
o Under: In this, choose Primary.
In Tally, after updating all the Godowns/ locations, choose Yes to accept the data.
Create Stock Units in Tally ERP 9

We can create units and compound units (for example, Box, NO's pcs, etc.) to measure stocks in Tally. The compound unit
is a combination of two units of measure. E.g., a box of 10 pieces is a compound unit of measure.
Use the following path to create a stock unit in Tally:
Gateway of Tally → Inventory Info → Unit of Measure → Create
Step 1: Firstly, log in to Tally, then Go to Gateway of Tally and choose Inventory Info.
Step 2: Under Inventory Info, choose 'Unit of Measures'.
Step 3: Choose 'Create' option under Units to create units of measures in Tally.
Step 4: Update the following details in the next screen 'Unit Creation'.
Symbol: Specify the symbol of units in which stock items are identified. For Example, No's indicates numbers.
Formal name: It refers as another name of the units. It is used to match the symbols with their respective names.
Number of decimal places: Decimal numbers can be used to detect units. For Example, 5.20 Kg refers to 5Kg and 200 gm.
Press A: Accept after entering all the required details to save the details in Tally.
How to Create Stock Items in Tally ERP 9
Stock items are referred to as goods that a company manufactures in Tally. In Tally, stock items can be created using two
methods which are as follows:
1. Single Stock Item
2. Multiple Stock Items
Groups Name of Item Unit Opening Qty Rate Amount
Television MI 32 Inch TV Nos 2 15,000 30,000
MI 42 Inch TV Nos 2 20,000 75,000
Sony 32 Inch TV Nos 3 25,000 75,000
LG 32 Inch TV Nos 4 20,000 80,000
Music System Sony 5.1 Music System Nos 2 20,000 40,000
Phillips DVD player Nos 5 15,000 75,000
Sony Blue Ray Player Nos 10 25,000 250,000

Creation of Single stock item
Use the following path to create single stock items in Tally.
Gateway of Tally → Inventory Info → Stock Items → Single stock item → Create
Step 1: Go to Gateway of Tally and then Choose Inventory Info.
Step 2: Choose Stock items under Inventory Info.
Step 3: Choose "Create" under the Single Stock Item.

Step 4: Enter the following details on the next screen, "Single Stock Group Creation".
Name: Specify the name of the stock item.
Alias: It can be short name of stock item or product id or another name.
Under: Specify the stock group under which this stock item is to be specified.
Category: Specify the stock category of stock items.
Units: It specifies the units of measure to count the
stock items.
Opening Balance: Specify the opening balance of the
stock items.
Quantity: Specify the quantity of stock items.
Rate: When we are entering the values of the rate for

stock items, a new window opens. Update the
following details, as shown below:
Godown: Under the list of Godowns, choose Godown.
Rate: Specify the rate of stock items.
Based on the quantity and rate amounts, per and
amount values are automatically calculated.
After specifying all required details, press enter to continue. In Tally ERP 9, choose 'Yes' to save the details.
Creation of Multiple Stock Items
Use the following path to create multiple stock items:
Gateway of Tally.ERP 9 > Inventory Info > Stock Items > Multiple stock items > Create
Step 1: Choose the "Create" option under multiple stock items, as shown below.
Step 2: Enter the following details in the next screen, "Multi Stock Item Creation".
Under group: Choose under group as all items to update the different types of stock items with different category groups.
Now update all the required details: Specify the name of items, stock group, stock category, stock units, stock opening qty,
and rates.
In the Tally ERP 9 system, click on A: Accept to save the entered details.
How to Activate GST in Tally
In Tally, to use GST features, it is mandatory to activate or enable GST. In Tally ERP 9, after activation of GST in features, all
the features which are GST related are available for all general ledgers, stock items, and transactions.
To activate GST in Tally, refer the following steps:
Step 1: Click on F11: Features or press function key F11 under Gateway of Tally.
Step 2: Choose Statutory & Taxation or press function key F3 under company features option.
Step 3: Enter the following details on the next screen, "Company Operation Alteration".
Enable goods and service tax: Specify 'Yes'.
Set/alter GST details: Specify 'Yes'.
Step 4: The following screen will appear when we enable 'Yes' for Set/alter GST details.
Step 5: Update all the required details of GST, as shown below:

State: It will automatically display state name based on the state which we have updated in the company.
Registration Type: In this, choose the GST registration type as "Regular" or "Composition".
GSTIN/UIN: Specify the GSTIN (Goods and Services Tax India Number). This GSTIN can be printed on invoices.
Applicable from: Specify the date that GST will be applicable for transactions.
Periodicity of GST: Specify the periodicity of GST as Quarterly or Monthly as per company requirements.
e-Way bill applicable: In this, choose the Yes option.
Applicable from: Specify the date that e-way bill to be applicable from.
Threshold limit includes: This will be based on taxable/ invoice value and taxable goods value/ exempt goods
Threshold limit: Specify the value of the amount of threshold limit allowed.
Applicable for intrastate: If it is applicable to our state, choose the option as "Yes".
Threshold limit: Specify the threshold limit
Enable tax liability on advance receipts: To activate tax liability on advance receipts, choose the option as "Yes".
Set/alter GST rate details: To set or alter GST rate details at the company level, choose the option as "Yes".
Enable GST classifications: To activate GST classifications, choose the option as "Yes".
In Tally, choose the "Yes" option, entering all the required details for activation of GST to accept the data and save the
details.
Payroll Configuration in Tally ERP 9

In this section, we will discuss the step by step process to enable payroll configuration in Tally ERP 9.
Step 1: Use the following path to enable payroll configuration.
Gateway of Tally → F12: ConFigure → Payroll ConFigurations
Step 2: Under Gateway of Tally screen, choose F12 function key or F12: Configuration option.
Step 3: Choose the option "Payroll Configurations under the configurations menu.
Step 4: Update the following details in the next screen

"Payroll Configuration".
Add notes for employees: To add notes for employees,
choose "Yes".
Show statutory details: To enter ESI, PF, and PF PAN
details in the employee master record, choose "Yes".
Provide passport and visa details: To record the
information regarding the passport and visa details of
employees, choose "Yes".
Show contact details: To display contact details of
employees, choose "Yes".
Show resigned/retired employees: To show the retired and resigned employees in payroll configuration, choose "Yes".
Show employee display name: To display an employee, choose "Yes".
In Tally ERP 9, we have successfully configured payroll.
How to Enable Payroll in Tally

In Tally, the payroll activation is a one-time configuration setup. To enable payroll in Tally, use the following step by step
procedure.
Step 1: Use the following path to enable payroll in Tally
Gateway of Tally → F11: Features → F1: Accounting Features
Step 2: Choose the option Account Info under Gateway of Tally.
Step 3: Choose the option "Accounting Features" or press function key "F1" under company features.
Step 4: Update the

following details
under accounting
features options
To enable payroll in
Tally.ERP 9, choose
the option "Maintain
Payroll" as Yes.
To maintain more than one payroll for a company and separate cost
categories are created and allocated to the cost of an employee,
choose the option "Maintain more than one payroll or cost category"
as Yes.
To save the details in Tally, choose A: Accept.

In Tally ERP 9, after activation of the Payroll feature, Payroll info will
be activated under the master option.
Enable Payroll Statutory Features in Tally

In this section, we will discuss the step by step process to enable payroll statutory features in Tally ERP 9. When we enable
payroll in Tally, then the option of enabling payroll statutory will be enabled in statutory & taxation.
Step 1: Use the following path to enable payroll statutory features in Tally.
Gateway of Tally → F11: Features → F3: Statutory and Taxation
Step 2: Choose the option F11: Features, under Gateway of Tally.
Step 3: Choose the statutory & taxation option under company features.
Step
4: Active the
following
details
under
statutory
and
taxation.
Enable
payroll
statutory: Set the "Yes" option.
Set/alter payroll statutory details:
Set the "Yes" option.
Press enter after enabling payroll statutory.

Step 5: Specify the details of provident fund, employee state insurance, national pension scheme, and income tax of
company under Payroll statutory details.
Press enter after entering the details to accept the screen and go back to the Statutory & Taxation screen. In Tally, press
Ctrl+A to save the details.
Define Employee Category in Tally

In Tally, an employee category
classifies the company employees,
which is based on the projects or its
locations.
Create Single Employee Category
Use the following step by step process
to create a single employee category.
Gateway of Tally → Payroll Info →
Employee Categories → Single
Category → Create
Step 2: Choose the option Payroll
Info under the Gateway of Tally.
Step 3: Choose employee
categories under payroll info
features, as shown below.
Step 4: Choose the "Create" option
under a single category to create a
single employee in Tally.
Step 5: Define the following details on employee category creation.

Name: Define the employee name category, which is to be created in Tally ERP 9.
Allocate revenue items: To assign the revenue related transaction values for the employee, choose the option as "Yes".
Allocate non-revenue items: To assign the non-revenue related transaction values for employees, choose the option as
"Yes".
Create Multiple Employee Categories

Step 1: Use the following path to create multiple employee categories.
Gateway of Tally → Payroll Info → Employee Categories → Multiple Categories →
Create
Step 2: Choose the "Create" option under multiple categories.
Step 3: Update the following details on multi employee's creation screen, as shown
below:

Create Employee Groups in Tally
In this section, we will discuss how to
create, modify, and display employee
groups in Tally. In Tally, using the single
creation method and multiple creation
methods, an employee group can be
created. Use the step by step process to
create employee groups in Tally.
Step 1: Use the following path to create
employee groups.
1. Gateway of Tally → Payroll Info → Emp
loyee groups → Single Group → Create
Step 2: Click on payroll info under Gateway
of Tally screen.
Step 3: Click on the Employee Group option
under payroll info.
Step 4: Click on the option 'create' on the
employee group screen under single groups.
Step 5: Enter the following details under
the employee group creation screen.
Category: Choose the employee category
under the list.
Name: Specify the name of the employee group.
Under: Specify the group as a primary group.
In Tally ERP 9, press enter and click on 'Yes' after maintaining all the required for employee group creation to save the
data.
How to Create Multiple Employee Groups

Step 1: Use the following path to create multiple employee groups.
1. Gateway of Tally → Payroll Info → Employee groups → Multiple Groups → Create
Step 2: Click on 'create' option under multiple group options to create multiple employee
groups in Tally.
Step 3: Enter the following details under multi employee group creation screen.
o Under Employee Group: To assign different employee categories for employee
group, choose this option as "All items". We can only assign one employee group to
one employee category.
o Specify all the details of the category of employee, name of the employee group, and
under group.
Press enter and choose "Yes" after maintaining all the details of multi employee groups to save the details in Tally.
Create Employees Master Data in Tally

In Tally, after the successful creation of employee groups, we can create individual employees master data with groups or
without grouping.
In employee master's data, all the activities of human resource management employee details can be maintained.
How to create a single employee
Step 1: Use the following path to create a single employee.
Gateway of Tally → Payroll Info → Employees → Single Employee → Create
Step 2: Click on the option Payroll Info under
Gateway of Tally, as shown below.
Step 3: Click on the option "Employees" under
Payroll info features to create new employees
in Tally.
Step 4: Click on the Create option under the
single employee option.
Step 5: Enter the following details on the next
screen "employee creation".
Name: Specify the employee name, and this
name will be displayed in reports.
Display name in report as: Enter here to
display name in reports other than given in
name field.
Under: Select the employee group under the
field.
Date of Joining: Specify the joining data of an
employee.
Define salary details: Choose this option as "Yes" to enter the salary details of an employee, and the salary details
creation screen will be opened. We will enter all the details of an employee salary like PF, basic pay, allowance, tax, etc.
under the salary details screen.
Press enter to continue after entering the details of employee salary.

Step 6: Specify the required details of an employee like Employee number, designation, function, location, gender, date of
birth, blood group, father's/mother's name, address, and contact details under general information.
Step 7: Choose the option as "Yes' to enter the bank details of an employee. Now the bank details screen will be opened.
Specify the required bank details like Account no, IFSC code, bank name, Branch, and transaction type.
Step 8: Specify the statutory details of the employee like Income tax
number, Aadhaar number,
Universal account number,
PF account number, EPS
account number, Date of
joining for PF, ESI number,
ESI dispensary name.
Step 9: Specify all the
required details of employee
password i.e., Passport
number, country of issue,
passport expiry date, Visa
number, and Visa expiry date.
Step 10: Specify the contact details of an employee like work permit number, contract start date, and
end date.
Step 11: Press enter and choose "Yes" after entering all the required details to accept the entered
employee data in Tally ERP 9.
Create Simple Payroll Units in Tally
o Simple Payroll Units
o Compound Payroll Units
Payrolls can be calculated and computed based on the compound payroll units and simple payroll.
Creation of simple payroll unit in Tally
Simple payroll units refer to single or individual units like Hours, Day, Week, Box, Nos, etc. Use the following step to create
a simple payroll unit in Tally.
Step 1: Click on the option Payroll info under Masters.
Step 2: Click on the option Units under Payroll Info features.
Step 3: Click on the option Create under Units

(Work) to create a new simple payroll unit in
Tally ERP 9.
Step 4: Enter the following details on the next screen Unit Creation.
Type: Select the payroll unit type as Simple.
Symbol: Specify the symbol of the unit.
Formal Name: Specify the name of a payroll unit.
Name of decimal places: Specify the number of decimal places as 2.
Press Enter and click on yes after entering all the required details of
payroll units to save the data in Tally ERP 9.
Create Simple Payroll Units in Tally

In Tally, compound payroll units refer to a combination of two simple payroll units.
For example, Hours of 60 minutes, a Month of 30 days, etc.
Step 1: Use the following path to create simple payroll units in Tally.
Gateway of Tally → Payroll info → Units → Create
Step 2: Under the option Masters, click on the Payroll info option.
Step 3: Click on the option Units under Payroll Info features.
Step 4: Click on the option Create under

Units (Work) to create new compound
payroll units in Tally.
Step 5: Enter the following details on the next screen Unit Creation.
Example: 60 Minutes = 1 Hour i.e.
o Type: Choose the types of payroll units as "Compound" and press Enter to continue.
o First unit: Choose the unit from the list of payroll units under the First unit option.
o Update the Conversion factor as 60.
o Modify the Second unit from the list as Mins.
Press Enter and click on yes after entering all the required details of compound payroll to save the data in Tally ERP 9.
Create Purchase Voucher in Tally

Use the step by step process to create the purchase voucher in Tally.
Screen: Gateway of Tally
Path: Tally Main → Gateway of Tally
Step 1: To enter the voucher creation screen, select the menu option 'Accounting Vouchers'.
Screen: Accounting voucher creation
Path: Gateway of Tally → Accounting Voucher Creation
Step 2: Button → 'Purchase': Click on the button or press F9, if Tally is not already in 'Purchase Voucher' mode.
Step 3: Field → 'Supplier's Invoice Number':Enter the invoice number. The invoice no can be found on the
invoice, which is given by the supplier.
Step 4: Field → 'Date':Specify the date of the supplier's invoice.
Step 5: Field → 'Name of Party Account': Choose the relevant vendor name from whom purchases have been
made.
Step 6: Field → 'Purchase Ledger': Under the list, choose a purchase account.
Step 7: Field → 'Name of Item': Choose the stock item that has been purchased.
Step 8: Field → 'Quantity': Specify the quality of the purchased stock items.
Step 9: Field → 'Rate': Specify the price of per unit at which the stock item was purchased.
Step 10: Field → 'per': Specify the UOM relevant to this stock item. The UOM was selected when creating this
stock item 'master'. Note that Tally proposes the UOM.
Step 11: Filed → 'Amount': Tally multiplies the rate fields and quantity and proposes the amount
automatically.
Step 12: Filed → 'Name of Item':If we have purchased more than one stock item from the vendor in the same
invoice, choose another stock item. Else, choose 'End of List'.
Step 13: Field → 'Name of Item': If another set of items need to be entered in a different purchase ledger,
choose another purchase ledger. Else, choose 'End of List'.
Step 14: Field → 'Narration': Specify a narration if needed.
Step 15: 'Accept' or 'Reject' the entered data so far.
Step 16: Choose the menu item 'Display' to see the impact of the voucher entry on the relevant ledgers.
Path: Gateway of Tally → Display Menu
Step 17: Choose the menu item 'Account Books'.
Path: Gateway of Tally → Display Menu → Account Books
Step 18: Choose the menu item 'Ledger'.
Screen: Select Item
Path: Gateway of Tally → Display Menu → Account Books → Select Item
Step 19: Field → 'Name of Ledger': Choose the relevant account, and that ledger will be displayed.
Screen: Ledger Vouchers
Path: Gateway of Tally → Display Menu → Account Books → Ledger Vouchers
Step 20: Now, we can see that the ledger of the vendor has been credited because of the purchased voucher. In
the purchased account, the corresponding debit entry can be found.
Screen: Select Item
Step 21: Choose the relevant purchase account.
Step 22: Using the account, the purchase account has been debited.
Step 23: Select 'Trial Balance' from 'Display Menu' to see the impact on the 'Trial Balance'.
Step 24: Button → 'Debited': The trial balance is displayed condensed mode by default. In condensed mode,
only the account groups are displayed. Click on the button named 'Detailed' or press 'Alt+F1' to see the details.
Create Sales Voucher in Tally

Use the step by step process to create sales voucher in Tally.
Step 1: To enter the voucher creation screen, select the menu option 'Accounting Vouchers'.
Screen: Accounting Voucher Creation

Step 2: Button → 'Sales': Click on the button named 'Sales' or press 'F8', if Tally ERP 9 is not already ion 'Sales
Voucher' mode.
Step 3: Field → 'Reference No': Specify the reference number like the customer's PO number.
Step 4: Field → 'Party's A/c Name': Choose the relevant customer name to whom sales have been made.
Step 5: Field → 'Sales Ledger': Under the list, choose a sales account. Tally can process only those ledgers
which have been created under the account group 'Sales Accounts'.
Step 6: Field → 'Name of Item': Choose the stock item that has been sold.
Step 7: Specify the sold quantity of the stock item.
Step 8: Field → 'Rate': Specify the price of per unit at which the stock item was sold.
Step 9: Field → 'per': Tally ERP proposes the UOM. This UOM was selected when we create this stock item
'master'.
Step 10: Field → 'Amount': Tally multiplies the rate fields and quantity. It automatically proposes the
amount. In Tally, there is no need to modify the amount.
Step 11: Field → 'Name of Item': In the same invoice, if we have sold more than 1 stock item to the customer,
select another stock item. Else, we will select 'End of List'.
Step 12: Filed → 'Name of Item': Choose another ledger. This ledger needs to be included in the invoice.
Step 13: Field → 'Narration': Specify a narration if we needed.
Step 14: Select the menu item 'Display' to see the impact of voucher entry on the relevant ledgers.
Step 15: Choose the option 'Account Books'.
Step 16: Choose the option 'Ledger'.
Screen: Select Item
Step 17: Field → 'Name of ledger': Choose the sales account, and that ledger will be displayed.
Screen: Ledger Voucher
Step 18: Using the sales voucher, we can see that the sales ledger has been credited. In the customer account,
the corresponding debit entry can be found.
Step 19: Similarly, display the account of the customer. We can see that the account of the customer has been
debited.
Step 20: Select 'Profit & Loss A/c' from the Display menu to see the impact on the 'Profit & Loss A/c'.
Screen: Profit & Loss A/c
Path: Gateway of Tally → ProNit & Loss A/c
Step 21: The 'Profit & Loss A/c' is used to show the profit numbers and sales amount.
Step 22: Button → 'Detailed': In condensed mode, profit & loss are displayed. In condensed mode, only the
account groups are displayed. Click on the button named 'Debited' or press 'Alt'+'F1' to see the details.
Step 23: Select 'Balance Sheet' from the Gateway of Tally to see the impact of the sales entry on the Balance
sheet.
Screen: Balance Sheet
Path: Gateway of Tally → Balance Sheet
Step 24: At the group level, the balance sheet is shown. Under 'Current Assets', customer accounts are
included.
Step 25: Button → 'Detailed': Click on the button named 'Detailed' or press 'Alt'+'F1' to see the details.
Tally Main → Gateway of Tally
Step 26: Select the menu item 'stock summary' to see the impact on the inventory of company records.
Screen: Stock Summary
Path: Gateway of Tally
Step 27: After the sales entry stock summary shows the on-hand inventory, which is the inventory left.
Step 28: Button → 'Detailed': To see the details like quantity and rate, click on button named 'Detailed' or
press 'Alt'+'F1'.
Step 29: Button → 'Show ProFit': At the level of stock item, Tally ERP can show the gross profit earned. To see
the same, click on button named 'Show Profit' or press 'F7'.
Screen: Accounting Voucher Alteration (Secondary)
Path: Gateway of Tally → Display Menu → Day Book → Accounting Voucher Alteration
Step 30: Button → 'Print': Click on the button named 'Print' or press 'Alt'+'p' to print an invoice to be sent to
a customer.
Screen: Voucher Printing
Step 31: Tally is used to allow the different ways to change the printing parameters, and as per our
preference, we will generate an invoice. To print the invoice, click 'Yes'.
Step 32: It provides a specimen of the invoice as it would look when printing has been given for the readers
benefit.
Step 33: Now, we will provide a quick look of the printing invoice as it relates to the sales voucher has been
given for the readers benefit.
Creating Receipt Voucher in Tally

Use the following steps to create a receipt voucher in Tally.
Screen Ledger Creation
Path Gateway of Tally → Account Info Ledgers → Ledger Creation
Step 1: To apply the entry on receipt, there should be a bank account in which money is received. Thus we will
create a bank ledger. Under the group named 'bank accounts', specify the name to the ledger and classify it.
Screen Gateway of Tally
Path Tally Main → Gateway of Tally
Step 2: To specify the voucher creation screen, select the menu option 'Accounting Vouchers'.
Screen Accounting Voucher Creation
Path Gateway of Tally → Accounting Voucher Creation
Step 3: Button → 'Receipt': Click on the 'Receipt' button or press 'F6', if Tally ERP is not already in 'Receipt
Voucher' mode.
Step 4: Tally ERP is in 'Receipt Voucher' mode after clicking the 'Receipt' button.
Step 5: Field → 'Account': Choose the relevant bank account name in which money is received.
Step 6: Field → 'Particulars': Choose the customer name from whom money is being received. Tally displays
the current amount.
Step 7: Field → 'Amount': Under the customer, specify the received amount.
Screen Bill-wise Details
Path Gateway of Tally → Accounting Voucher → Creation Bill-wise Details
Step 8: Field → 'Type of Ref': Since 'maintain balances bill-by-bill' has been enabled for this customer, Tally
asks for a reference like an existing invoice/ another document against which receipt is to be booked. This
amount is received for an existing invoice, select the option 'Agst Ref'.
Step 9:
Field → 'Name': In the previous step, we selected 'Agst Ref'. The tally shows an open documents list against
which receipt can be applied.
Step 10: Field → 'Amount': Tally automatically prompts the amount.
Step 11: Field → 'Dr/ Cr': Tally prompts the default accounting treatment.
Step 12: Field → 'Particulars': If we want to record receipt from many customers in one receipt voucher,
specify the name of another customer. Note that only one voucher will be used to record receipts from one
customer.
Screen Bank Allocations
Path Gateway of Tally → Accounting Voucher Creation → Bank Allocations
Step 13: Field → 'Transaction Type': Here, choose the mode of payment.
Field → 'Inst. No.': Here, specify the instrument number like cheque number
Field → 'Inst. Date': Specify the date which is mention on the payment instrument.
Field → 'Bank': Specify the name of the payer's bank.
Field → 'Branch': Specify the name of the player's bank branch.

Step 14: Field → 'Narration': Specify a narration, if we needed.

'Accept' or 'Reject' the entered data in the voucher so far. If the entered data is 'rejected', the voucher will not
be saved, and all entered data so far will be lost.
Path Gateway of Tally → Display Menu Accounts Books
Step 15: To select the relevant ledger, select the menu item 'Ledger'. Using this, we can see the impact of the
voucher entry on the relevant ledger accounts.
Path Gateway of Tally → Display Menu Accounts Books Select Item
Step 16: To see the impact of the receipt voucher, select the relevant ledger. In this case, first, we select the
ledger of the customer.
Screen Ledger Vouchers
Path Gateway of Tally → Display Menu Accounts Books Ledger Vouchers
Step 17: Now, the ledger of the customer also shows the credit entry. This can reduce the balance in the ledger
to nil.
Create Credit Notes in Tally

Use the following step by step process to create credit notes in Tally.
Step 1: Press F11 to enable credit or debit note features in Tally.
Path: Gateway of Tally → Company Features
Step 2: Choose the menu item 'Accounting Features'.
Screen: Company Operations Alteration
Step 3: Field → 'Use credit and debit notes': Specify 'Yes'.

Field → 'Record credit notes in invoice mode': Specify 'Yes'.
Field &rarr 'Record debit notes in invoice mode': Specify 'Yes'.
In 'voucher mode', it is easy to use debit/credit notes.
Step 4: Choose the menu item 'Accounting Vouchers'.
Step 5: Button → 'F8: Credit Notes': After applying the necessary changes in 'accounting features', Tally now
allows credit notes selection for entry.
Button → 'F8: Debit Notes': After applying the necessary changes in 'accounting features', Tally now allows
debit notes selection for entry.
Step 6: Button → 'F8: Credit Notes': To start credit note voucher screen press CTRL + F8.
Step 7: Button → 'V: As Voucher': To enter credit notes in 'voucher mode' press CTRL+V.
Step 8: Field → 'Original Invoice No': The invoice number of the same can be entered if the credit note relates
to an already issued sales invoice.
Field → 'Date': The date of the same can be entered here if the credit note related to an already issued sale
invoice.
Step 9: Field → 'Particulars': Under the list, choose the relevant customer ledger.
Screen: Party Details
Path: Gateway of Tally → Accounting Voucher Creation → After selection of party ledger
Step 10: This screen is optional. This optional screen can also be displayed by pressing 'no' at 'Enter
Supplementary Details' at 'Accounting Voucher Creation F12: Configure'.
Step 11: Field → 'Credit': Specify the amount.
Screen: Bill-wise Details
Step 12: Tally will ask us for referencing the credit note against existing bills.
Field → 'Type of Ref': Choose the appropriate reference type under the list.
Agst Ref: This reference allows the selection of an already existing reference.
Advance: If an advance is to be received, this is selected.
Step 13: Field → 'Name': Choose the relesvant invoice under the list. We have more than one reference.
Step 14: Field → 'Credit Days': Under the party master, this will automatically pick up.
Field → 'Amount': Specify the amounts which are relevant to each reference.
Field → 'Dr/ Cr': Tally automatically picked this. It is usually need not to be changed.
Step 15: Field → 'Particulars': Choose the relevant ledger account, which is to be debited.
Step 16: Field → 'Amount': Specify the amount for the ledger debited.
Field → 'Narration': Specify the narration for the voucher entry.
Message → 'Yes/ No': To save the voucher, choose 'Yes'. If we select 'No', the data will be discarded, and the
voucher will not be saved.
Path: Tally main → Gateway of Tally → Account Info
Step 17: Menu Item → 'Ledger': Choose the menu item 'Ledgers'.

Path: Tally main → Gateway of Tally → Account Info → Ledgers
Step 18: Menu Item → 'Create': Choose the menu item 'Create'.
Screen: Ledger Creation
Path: Tally main → Gateway of Tally → Account Info → Ledgers → Ledger Creation
Step 19: Field → 'Name': Specify a name for the sales return ledger.
Field → 'Under': Select 'Sales Accounts' under the list.
Field → 'Inventory Values are affected?' Choose 'Yes' here.
Step 20: Field → 'Name': Choose the party ledger under the list.
Path: Gateway of Tally → Accounting Voucher Creation → Party Details
Step 21: This screen is optional. To enter 'No' at 'Enter Supplementary Details', this screen can also be disabled.
Step 22: Field → 'Amount': Specify the amount here.
Screen: Bill-wise details
Path: Gateway of Tally → Accounting Voucher Creation → Bill-wise details
Step 23: Field → 'Type of Ref': Choose the relevant reference type.
Field → 'Name': Choose the existing invoice against which this credit note is to be issued.
Field → 'Credit Days': From customer master, Tally automatically picked up this.
Field → 'Amount': Specify the amount here.
Field → 'Dr/Cr': Tally automatically picked up this.
Step 24: Field → 'Particulars': Choose the ledger to be debited.
Screen: Inventory Allocations
Path: Gateway of Tally → Accounting Voucher Creation → Inventory Allocations
Step 25: Field → 'Name of Item': Choose the relevant stock item which is being returned by the customer.
Step 26: Field → 'Quantity': Specify the quantity which is being returned by the customer.
Field → 'Rate': Specify the rate per item to be credited to the customer.
Field → 'Amount': This is automatically calculated and need not be changed.
Step 27: Field → 'Narration': Specify the narration for entry of voucher.
Message → 'Yes/No': To save the voucher, choose 'Yes'.

Step 28: The impact of credit notes can see on profit and loss account, inventory quantity and value, and the
customer ledger.
Menu Item → 'Display': Here, choose the menu item 'Display'.
Step 29: Menu Item → 'Inventory Books': Choose the menu item 'Inventory Books'.
Path: Gateway of Tally → Display Menu → Inventory Books
Step 30: Menu Item → 'Stock Item': Choose the menu item 'Stock Item'.
Screen: Select Item
Path: Gateway of Tally → Display Menu → Inventory Books
Step 31: Field → 'Name of Item': Choose the stock item under the list.
Screen: Stock Item Monthly Summary
Path: Gateway of Tally → Display Menu → Inventory Books → Stock Item Monthly Summary
Step 32: The summary shows the outward quantity in negative.
Path: Tally main → Gateway of Tally
Step 33: Menu Item → 'Display': Choose the menu item 'Display'.
Step 34: Menu Item → 'Account Books': Choose the menu item 'Account Books'.
Step 35: Menu Item → 'Ledger': Choose the menu item 'Ledger'.
Screen: Select Item
Step 36: Field → 'Name of Ledger': Choose the relevant party ledger under the list.
Screen: Ledger Vouchers
Step 37: Field → 'Credit': In this, the customer account has been credited.
Screen: Profit & Loss A/c
Path: Gateway of Tally → ProNit & Loss A/c
Step 38: In this, sales returns are shown as a reduction under the sales account on the Profit & Loss A/C.
Step 39: In this, we can see how to create credit in 'voucher mode'.
Button → 'V: As Invoice': To start the credit note voucher in 'Invoice mode', click on the highlighted button or
press CTRL+V.
Step 40: Field → 'Original Invoice No': The invoice number of the same can be entered here if the credit note
pertains to an already issued sale invoice.
Field → 'Date': The date of the same can be entered here if the credit note relate to an already issued sale
invoice.
Step 41: Field → 'Party A/C Name': Choose the name of the relevant party under the list.
Path: Gateway of Tally → Accounting Voucher Creation → After selection of Party Ledger
Step 43: Field → 'Sales Ledger': Under 'Sales Accounts', choose the sales return ledger.
Step 44: Field → 'Name of Item': Choose the name of the stock item under the list.
The user or customer has returned this item.
Step 45: Field → 'Quantity': Specify the quantity which is returned by the customer.
Field → 'Rate': Specify the rate at which the material was invoiced to the customer.
Field → 'Amount': Using Tally, it can be calculated automatically and need to be changed.
Step 46: Button → 'F12: ConFigure': To change voucher entry configurations, click the highlighted button or
press F12.
Step 47: Field → 'Use defaults for bill allocations': This is set to 'No'.
Step 48: Field → 'Type of Ref': Under the list, choose 'Agst Ref' as the material return needs to be referenced/
identified against an existing invoice.
Field → 'Name': Choose the relevant sales invoice name of which the material is being returned.
Field → 'Credit Days': Under the customer master, this is picked up by Tally automatically.
Field → 'Amount': Specify the amount.
Field → 'Dr/Cr': Using the Tally, it is automatically picked up, and need not be changed.
Step 49: Field → 'Narration': Specify the narration for the voucher.
Message → 'Accept (Y/N)': To save the voucher, choose 'Yes'.
This entry of vouchers will lead to an increase in inventory, reduction in sales, and credit to the account of
customers.
Step 50: Field → 'Party A/c Name': Choose the ledger of the party under the list.
'Invoice mode' of Tally can also be used to enter credit notes. The credit notes are not related to inventory. The
invoice mode is a bit complex, and it is advisable to use 'voucher mode' instead of 'invoice mode'.
Path: Gateway of Tally → Accounting Voucher Creation → After selection of Party Ledger
Step 52: Field → 'Sales Ledger': Tally ERP forces entry of a sales ledger in 'Invoice mode' even if the credit note
is not related to sales.
Step 53: Field → 'Name of Item': Choose the 'End of List' as this credit note does not pertain to a sales return.
Step 54: Field → 'Name of Item': Choose the relevant ledger under the list.
This credit note relates to the quality rebate. We will choose the ledger 'Discount-Quantity Complaint' under the
list.
Step 55: Field → 'Amount': Here, choose the amount.
Step 56: Field → 'Narration': Specify a narration for the credit notes.
Message → 'Accept Y/N': To save the data and the credit note, choose 'Yes' or press 'Y'.
Screen: Ledger Voucher
Path: Gateway of Tally → Display menu → Account Books → Ledger vouchers
Step 57: We can see that 'Discount-Quality Complaint' has been debited, and the customer's ledger has been
credited.
TDS Configuration, Entries and Returns in Tally
Use the following step by step process to perform TDS configuration, entries, and returns in Tally.
Step 1: Button → 'Features': click on button named 'Features' or press 'F11'.
Step 2: Choose the menu item 'Statutory & Taxation'
Screen: Company operations Alteration
Path: Gateway of Tally → Company Features → Company Operations Alteration
Step 3: Field → 'Enable Source deduction at source (TDS)': To activate TDS features of Tally ERP, specify
'Yes' in the field.
Step 4: Field → 'Set/Alter TDS details': At the field named 'Set/Alter TAD Details' specify 'Yes'.
Screen: TDS Deductor details
Path: Gateway of Tally → Company Features → Company Operations Alteration → TDS Deduction details
Step 5: Field → 'Tax deduction and collection Account Number': Here, specify the TAN of the organization.
Step 6: Field → 'Deduction type': Choose the deduction type under the list. Click on the 'Configure' button or
Press 'F12'. If the list is shown by default, then Tally does not suffice for our requirements.
Screen: Advanced Configuration
Path: Gateway of Tally → Company Features → Company Operations Alteration → TDS Deduction details → Advanced
Configuration
Step 7: Field → 'Show all deduction type': To get a complete list of deduction types, set this to 'Yes'.
Screen: TDS deduction details
Step 8: Field → 'Deductor Type': Choose from the complete list of deductor types.
Step 9: Field → 'Set/alter details of person responsibility': All the details which are related to the person
responsible for TDS compliance need to be mentioned on challans and returns filed with the Government and
TDS certificate.
Screen: Person Responsible Details
Path: Gateway of Tally → Company Features → Company Operations Alteration → TDS Deduction details → Person
Responsible Details
Step 10: To ensure TDS compliance, specify all relevant details of the person responsible.
Screen: TDS Deductor details
Step 11: 'Accept' or 'Reject' the entered data.

Step 12: Choose the menu item 'Account info' to create 'TDS nature of payments'
Path: Tally main → Gateway of Tally Account Info
Step 13: Choose the menu item 'Statutory Info'.
Path: Tally main → Gateway of Tally → Account Info → Statutory Info
Step 14: Choose the menu item 'TDS nature of Payments'
Path: Tally main → Gateway of Tally → Account Info → Statutory Info → TDS nature of Payment
Step 15: Choose the menu item 'Create'.
Screen: TDS Nature of Payment Alteration
Path: Tally main → Gateway of Tally → Account Info → Statutory Info → TDS nature of Payment → TDS Nature of
Payment Alteration
Step 16: Field → 'Name': Specify the name for the TDS nature of payment like Fees for professional and
technical services.
Field → 'Section': Specify a name for the TDS nature of payment like '194J'.
Field → 'Payment code': Specify a name for the TDS nature of payment like '94J'.
Field → 'Rate': Specify a name for the TDS nature of payment like '10%'.
Field → 'Threshold limit': Specify a name for the TDS nature of payment like 'Rs. 30,000'.
Step 17: 'Accept' or 'Reject' the entered data for the creation of the TDS nature of payment.
Step 18: We need to configure expense ledgers for TDS after configuring the 'TDS nature of payments'.
Choose the menu item 'Account info'.
Path: Tally main → Gateway of Tally → Account info
Step 19: Choose the menu item 'ledgers'.
Path: Tally main → Gateway of Tally → Account info → Ledgers
Step 20: Choose the option 'Create' an expense ledger, which will also be configured for TDS.
Path: Tally main → Gateway of Tally → Account info → Ledgers → Ledger Creation
Step 21: Field → 'Name': Specify the name for the expense ledger.
Step 22: Field → 'Under': Under the appropriate expense group, specify the ledger.
Step 23: Field → 'Is TDS applicable': Here, choose 'Application'.
Step 24: Field → 'Nature of Payment': Choose the TDS payment nature, which is relevant to this ledger.
Step 26: Similarly, create a vendor ledger and then enable it for TDS.
Field → 'Name': Specify the vendor name.
Step 27: Field → 'Under': Under 'Sundry Creditors', specify the vendor ledger.
Step 28: Field → 'Maintain balances bill-by-bill': Enable this to track outstanding amount against each
specific bill.
Step 29: Field → 'Is TDS deductible': For this vendor, enable this to deduct TDS.
Step 30: Field → 'Deductee Type': For this ledger, choose the deductee type.
Step 31: Field → 'Deduct TDS in the same voucher': Enable this to deduct TDS in the same voucher in which
advance payment is made to the vendor or expense is booked.
Step 32: Field → 'PAN/IT No': Specify the PAN of this vendor. This PAN is useful for filing TDS returns.
Step 33:
'Accept' or 'Reject' the entered data so far. Rejection of data will discard all data and does not create the ledger.
Path: Gateway of Tally → Account info → Ledgers → Ledger Creation
Step 34: Field → 'Name': Specify a name for the TDS ledger.
Step 35: Field → 'Under': Under 'Duties & Taxes', specify the ledger.
Step 36: Field → 'Type of Duty/ Tax': Choose TDS as the type of tax.
Step 37: Field → 'Nature of Payment': Choose the TDS payment nature that is relevant to this ledger.
Step 39: Choose the menu item 'Accounting Voucher' to make entries involving TDS.
Step 40: Button → 'Journal': Click on the 'Journal' button or press F7 if Tally is not already in 'Journal Voucher'
mode.
Step 41: Tally is now in the 'Journal voucher' mode.
Step 42: Field → 'Particulars': Choose the relevant expense ledger, which is to be debited.
Step 43: Field → 'Debit': Specify the amount to be debited.
Step 44: Field → 'Particulars': Specify the ledger to be credited.
Path: Gateway of Tally → Accounting Voucher creation → Bill-wise details
Step 45: Field → 'Type of Ref': Here, choose the type of reference. For the first time, an expense is being
booked, and there is no advance against which this expense is to be adjusted. Select the menu option 'New Ref'.
Step 46: Field → 'Name': Specify the number of the invoice which is provided by the vendor.
Step 47: Field → 'Amount': Tally ERP picks up the amount from the entry of the vendor. If more than 1 invoice
from the same vendor is to be booked using the voucher, the amount may be modified.
Step 48: Field → 'Dr/Cr': Choose whether the amount is to be Credited (Cr) or debited (Dr). Tally automatically
picks this.
Step 49: Field → 'Name': Specify the same invoice number, which we entered for the previous line.

Path: Tally main → Gateway of Tally → Accounting Voucher Creation
Step 50: Field → 'Particulars': Choose the TDS ledger name, which is to be credited.
Step 51: Field → 'Credit': Tally processes the remaining amount as the portion of TDS.
Step 52: Field → 'Narration': If we needed, specify a narration.
Step 53: 'Accept' or 'Reject' the entered data so far. Rejection of data will discard all data and does not create the
ledger.
Step 54: Choose the menu item 'Display' from Gateway of Tally to see the impact of the vendor entry on trial
balance.
Path: Tally main → Gateway of Tally → Display menu
Step 55: Choose the menu item 'Trial Balance'.
Screen: Trial balance
Path: Tally main → Gateway of Tally → Display menu → Trial balance
Step 56: Button → 'Detailed' OR 'Ledger-wise': At the account group level, Tally ERP shows the trial balance.
Click on the button named 'Detailed' or press 'Alt'+'F1' to see the details.
Alternatively, click on the button 'Ledger-wise' or press 'F5'.
Step 57: The trial balance shows the impact of the entry of ledger.
Step 58: Choose the menu item 'Display' from the Gateway of Tally to see the impact of the voucher entry on the
trial balance.
Path: Tally main → Gateway of Tally → Display menu
Step 59: Choose the menu option 'Statutory Reports'.
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports
Step 60: Choose the menu option 'TDS reports'.
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return
Step 61: Choose the menu option 'Form 26Q'.
Screen: Form 26Q
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return → Form 26Q
Step 62: Tally gives important statistics about the return of TDS like entries excluded, entries included, and
entries body, which Tally does not have sufficient data to decide the applicability of TDS.
Step 63: Choose the line that shows uncertain transaction and press 'Enter' to review the uncertain
transactions.
Screen: Summary of Exception

Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return → Form 26Q → Summary of
Exceptions
Step 64: Here, the nature of the error that occurred is mentioned. Choose the line which shows the error and
press 'Enter'.
Screen: Exception Details
Exceptions → Exception Details
Step 65: Field → 'Exception': At the top of the exception field, the nature of error shows.
Field → 'List of Groups': Here, we show the relevant ledger to which the exception pertains is listed. To choose
the line, press 'Space'.
Button → 'Nature of Payment': To resolve the error, click this button.
Screen: Set Nature of Payments
Exceptions → Exception Details → Set Nature of Payments
Step 66: Field → 'Nature of Payment': Since the purchase is not liable to TDS, choose 'Not Applicable'.
Step 67: With these ledgers, there are no ledgers.
Exceptions
Step 68: Similarly, choose the other exception for resolution.
Step 69: Field → 'Exception': At the top against the exception field, the nature of error shows.
Field → 'Name of Ledger': Here, we show the relevant ledger to which the exception pertains is listed. To
choose the line, press 'Space'.
Button → 'Deductee Type': To resolve the error, click this button.
Step 70: Field → 'Name of Ledgers': To select the line, press 'Space'.
Button → 'Deductee Type': To resolve the error, click this button.
Step 71: Field → 'Deductee Type': Choose the relevant 'deductee type' under the list.
Step 72: There are no ledgers with this exception.
Exceptions
Step 73: Similarly, choose the other exceptions for resolution.
Step 74: Field → 'PAN No': During the ledger creation, the Pan number of the vendor was not entered. This
needs to be resolved here. Specify the PAN.
Screen: From 26Q
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return → Form 26Q
Step 75: For the accuracy of TDS processing, we may verify other transactions.
Button → 'Save': Click on the button named 'Save' or press 'F6' to save the TDS return.
Step 76: 'Accept' or 'Reject' the entered data.
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return
Step 77: Choose the menu item 'Return Transaction Book'.
Screen: Return Transaction Book
Path: Tally main → Gateway of Tally → Display menu → Statutory Reports → TDS Return → Transaction Book
Step 78: In return transaction book, the saved transaction will be visible.

Tally ERP9 Notes

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Tally ERP9 Notes

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Tally Tutorial

How to Download Tally ERP 9 Software

3. Choose the option Tally.ERP 9.

How to start Tally

Or we can follow the path: Start > Program > Tally.ERP 9

The following options will appear on the startup screen:

Note: If we want to use Tally for business purposes, we

Screen Components in Tally

The following components are contained by the

Tally Screen Components

Tally ERP 9 Configuration

Numerical Symbols: The following configurations are

Voucher Entry: The

Order Entry/ Invoice: The

Payroll Configuration: The following details are contained in the Payroll

Banking Configuration: The following details are

E-Mail: This configuration is used to setup the e-mail server of the

Data configuration: The data configuration is used to define the

Advanced Configuration: This configuration is

Accounting Features in Tally ERP 9

Accounting features are divided into 6 sections, which are as follows:

Update the following details on Company Operations Alteration Screen:

Inventory features in Tally ERP 9

How to enable Inventory features

Statutory & Taxation in Tally ERP 9

Update the following details on Company Operations Alteration Screen:

Gateway of Tally → Company Info → Create Company

Step 2: The following screen

Note: Use the Arrow key, Tab

How to Alter/ Delete/ Shut Company in

Step 2: Under "List of Selected Company",

Step 3: On the screen of company alteration, add

How to delete company

Step 2: Now, click on Select Company and then click

How to Shut Company in Tally

What are Groups in Tally ERP 9

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. Stock in Hand 7. Deposits 12. Cash in Hand

4. Unsecured Loans 9. Provisions

5. Reserves & Surplus 10. Sundry Debtors

How to Create Group in Tally ERP 9

Step 2: Choose the option Groups under Accounts Info.

Step 3: In Tally ERP 9, choose the option Create under Single

Step 4: Update the following details on the Group creation screen:

How to Display Group in Tally

Step 5: To close the screen, click on Q: Quit.

How to Alter Group in Tally ERP 9

Step 3: From the

Create Single Ledger in Tally ERP 9

How to Create Ledger Account in Tally

Step 5: Update the following details on Ledger creation screen.

How to Display Single Ledger in Tally

How to Alter Single ledger in Tally

Step 2: Under the List of Ledgers, choose the ledger

In Tally ERP 9, now modify/

Create Multiple Ledgers in Tally

2. Under: The under group field will be

Step 2: Under the List of Groups, choose the

Step 3: Now, the multi ledgers screen displays, as shown below.

Note: Users are not allowed to modify any

How to Alter Multi Ledgers in Tally