TALLY.ERP9

Gateway of Tally

The opening screen of Tally Software has Main Area, Info Area, Buttons Panel etc.

The main screen contains menu of Tally is “Gateway of Tally”.  There are some sub menus for the options selected.  Quitting from sub menu moves to its previous or above menu where as quitting from main menu will cause closing of Tally.  The Company Info menu is your main menu when no company has been activated.

Company is the default name assigned by Tally for your organization.  We can create, open, close, manage as many companies we want.  But at a time we can work with one company which is known as “Active Company”.

 

The menu of Tally can be used with the help of mouse, keyboard shortcuts, Navigation+Enter or Hotkeys.

Keyboard shortcuts for most of the vouchers, reports are displayed as buttons as when required automatically.

 

3 types of keyboard shortcuts in Tally:

F3 means press F3

F3 means press alt+F3

F3 means press Ctrl+F3

 

Hotkey is the highlighted letter with red color in each menu command.  This enables user to directly issue the command without any navigation or mouse click.

Company Info Management

  1. Gateway of Tally–>Company Info –>Create Company (or) Alt+F3
  2. Company creation screen appears with the following options:
    1. Directory (i.e. folder) Default working folder of Tally in Windows7 or later systems: C:\users\public\Tally.ERP9\Data
    2. Primary mailing details
    3. Contact details
    4. Books and financial year details (Books beginning date must be later date from Financial year beginning date)
    5. Security control
    6. Base currency information
  3. Press Enter or Tab to move to next option in the screen
  4. Press Shift+Tab to move to previous option
  5. Use arrow keys to navigate through sub-list
  6. Press Space clear any data entry field

Select Company

Press F1 (or) company info–>select company

Activate Company

The Active Company is a company to which we are currently entering accounts.

Shut or DeActivate Company

Alt+F3–>company info–>shut company

(or)

Alt+F1 to close active company

Alter Company

Company info–>alter–>select your required company

Backup/Restore

Each company will be stored with an identification number in the data folder of Tally Software.  In case the data to be moved, software upgrading, formatting due to virus or working on more than one system without networking and also with single user version of Tally software we might have the need to take backup of our data.     
This feature helps the user who does not know much about windows operations like copying and paste from one memory to another to take backup and restore the backed-up data on his desired system.

Backup means creating a copy of data for future reference or

Restore means copying already copied data from memory device to working folder of Tally.

Delete Company

Company info–>alter–>select your company–>press Alt+D (it can not be restored)

(or)

open data folder of tally and press delete key (it may be restored using recycle bin)

Where Company Data is stored?

Tally maintains default location to maintain all the data of your created companies.  The default location of data is c:\users\public\Tally.Erp9\data

But you can change the location at the time of creation of company.

 

 

Changing Data Configuration Settings: F12–>Data Configuration

Backup/Restore

Backup/Restore:
Each company will be stored with an identification number in the data folder of Tally Software.  In case the data to be moved, software upgrading, formatting due to virus or working on more than one system without networking and also with single user version of Tally software we might have the need to take backup of our data.     
This feature helps the user who does not know much about windows operations like copying and paste from one memory to another to take backup and restore the backed-up data on his desired system.

Backup means creating a copy of data for future reference or

Restore means copying already copied data from memory device to working folder of Tally.

Group Company

The accounts of individual companies that belong to the same management can be consolidated to present a single financial report of the group of companies. You can view the performance of the group as a whole when required

 

Create Group Company option is available only when two or more companies are loaded.  A constituent company can be a member of more than one group.  A group company can also be a constituent of another group company.

Entering a transaction is possible only in the member companies, and not group company.  A group company can also be a constituent of another group company.

Reload the company to see the changes done to the group company.

 

Procedure to create Group Company:

  • Alt+F3: Company Info–>Create Group Company
  • Provide a name for the Group
  • Select the member companies from the list of companies

Split Company

Sometimes you need to separate the different financial year data of active company.  During splitting new company will be created with the split data, the original data remains same.  Before splitting data it is necessary to backup data.

Procedure:

  • Alt+F3 to open Company Info Menu
  • Select Split company option
  • Enter the beginning and ending dates for your desired period in the boxes.
  • Choose yes to start spitting process

TallyVault Password

An enhanced security system, which allows encryption of your company data. Encryption involves converting normally accessible Tally information into unrecognizable information, which can only be reconverted by authorised persons.

LEDGERS CREATION

In order to enter our business transactions first of all we must have the ledgers ready.  Because we will stop our work at Journal Entry and the rest of the work from Ledger Posting will done by Tally.

 

 

Go Gateway of Tally–>Accounts Info–>Ledgers to create, view or modify the ledgers

 

 

In the Ledgers Menu we can have the following commands:

Single Mode: used to create, view or modify a single ledger at a time

Multiple Mode: used to create, view or modify number of ledgers without providing much details for the sake of faster entry and also for the ledgers belong to same group

 

 

For each company created 2 ledgers are automatically created by Tally:

Cash a/c

Profit & Loss A/c

 

 

Every Ledger in Tally should be a member of a particular group.

GROUPS OF TALLY

Video Explanation:

Part -1

Part – 2

Tally Group determines where the balance of a particular ledger to be represented in financial reports and also to group similar nature ledgers under single accounting head. 

 

Tally creates financial reports based on groups only.  So, we should create ledgers under a group in order to correctly represent the balance of ledger in financial reports.

 

There are 28 pre-defined Groups in Tally out of which 15 are Primary and 13 are sub-groups derived under some primary group.  Out of 15 primary groups, 9 groups (capital nature) are represent in Balance sheet, 6 groups(Revenue nature) are in P&L account.  We can  create, modify, rename and delete pre-defined or user-defined groups but should not done for primary groups.

The 15 pre-defined Primary Groups:

  1. Branch/Divisions: Capital nature. Used to create branch accounts. Eg: Vizag Branch a/c
  2. Capital Account: Capital nature. Used to create all types of capital such as Share Capital, Partner’s Capital and also drawings.
  3. Current Assets: Capital nature. Used to create accounts of assets that can be liquefied within short term and also prepaid expenses, receivable income.
  4. Current Liabilities: Capital nature. Used to create short term liabilities. Used to create liabilities accounts that are to be paid within short time and also pre received income, payable expenses etc.
  5. Direct Expenses: Revenue Nature. Used to create all expense a/cs that are considered as manufacturing or trading related. Eg: Wages a/c, Unloading charges, carriage inwards, foremen salary, freight etc.
  6. Direct Incomes: Revenue nature. Used to create ledgers that appear like income sources but not to be considered as income from main business activity. Eg: sales of scarp, sale of empty barrels, sale of gunny bags, sale of by-products, Factory Insurance claim recovery
  7. Fixed Assets : Capital nature. Used to create all type of asset a/cs that are purchased for business and can provide service for a long time.
  8. Indirect Expenses: Revenue nature. Used to create all expenses related to sale of products or office expenses.
  9. Indirect Incomes: Revenue nature. Used to create all incomes related to office
  10. Investments: Capital nature. Used to create asset accounts like below:
  11. asset that can be resold in the market at any point of time
  12. asset should generate income by way of interest or dividends

Eg: equity shares, NSC bonds

  1. Loans (Liability): Capital nature. Used to create any type of loan account borrowed by company.
  2. Misc. Expenses (Asset): Capital nature. Used to create all expense accounts that are not written off to P&L a/c the same year in which they are incurred. Such an expense is written off proportionally over a number of years.  Eg: preliminary expenses lump sum amount paid for obtaining copy right.
  3. Purchase Accounts: Revenue nature. Used to create any type of purchase accounts along with purchase returns account. Eg: credit purchases a/c, cash purchases a/c, purchases @ 12.5% VAT, InterState Purchase A/c
  4. Sales Accounts: Revenue nature. Same as Purchase accounts but for Sales.
  5. Suspense Account: Capital nature. Used to create all accounts where the actual amount involved in the transaction or the particular ledger a/c involved is not known temporarily. Eg: Travelling advance a/c, Interest suspense a/c

The 13 Pre-defined Derived Groups

  1. Bank Accounts : derived under Current Assets. Used to create current, savings Bank accounts of the firm
  2. Bank OD: Derived under Loans (liability). Create all loan a/c borrowed by the company for the purpose of working capital.
  3. Cash in Hand : derived under Current Assets. Cash a/c ledger will be automatically created by Tally for each company.  If necessary we can create petty cash a/c etc under this group.
  4. Deposits (Assets): Derived under Current Assets. Used to create deposits of organization in other firms. Eg: telephone deposit, Electricity deposit etc.
  5. Duties & Taxes: derived under Current Liabilities. All types of tax ledgers to be created under this group. Tax ledgers have the amount collected from customers and to be remitted to Government.
  6. Loans & Advances (Asset): Derived under current assets. Used to create all types of loans and advances that are given by the company to staff members or outsiders. Eg: Loan to accountant, loan to salesman
  7. Provisions: derived under current liabilities. Used to create all provisions set aside from profits to meet any unpaid expenditure of the current year or unforeseen losses of future. Eg: provision for sales tax, provision for bad debts
  8. Retained Earnings: derived under capital account. Used to create all reserve accounts set aside from profits for future development of business. Eg: Capital reserve, General Reserve, Reserve for Depreciation etc
  9. Secured Loans: derived under loans (liability). Used to create all Loan a/cs borrowed by the company against primary or collateral or both types of securities. Eg: Term Loan from SBI a/c, Truck Loan from Apple Finance Corp.
  10. Stock-in-Hand: derived current assets. When the company was created to maintain Accounts with Inventory there is no need to create Stock a/c since Tally automatically take care of it. In the case of Company created with Accounts Only but has physical stock in the business than Stock a/c to be created under this group and Opening and Closing balances to be entered manually.
  11. Sundry Creditors: derived under current liabilities. Used to create all suppliers or vendor accounts to which the company owes.
  12. Sundry Debtors: derived under current assets. Used to create all customer accounts which are owe to company.
  13. Unsecured Loans: derived under loans (liability). Used to create all loan a/cs borrowed by the company without any security. Eg: Loan from friend or father etc

Additional pre-defined Groups that are alias for other Groups:

  1. Expenses (Direct) : Alternate name for Direct Expenses
  2. Expenses (Indirect): Alternate name for Indirect Expenses
  3. Income (Direct): Alternate name for Direct Income
  4. Income (Indirect): Alternate name for Indirect Income
  5. Reserves & Surplus: Alternate name for Retained Earnings
  6. Bank OCC: Alternate name for Bank OD

Difference between Direct and Indirect Expenses

The meaning of Direct Expenses changes according to the type of company.  If the company is a Manufacturing Company Direct Expenses means expenses spent at factory at the time of production.  If the company is a Trading Company then direct means expenses spent to brought goods into business.  Direct Expenses and Direct Incomes are represented in Trading/Manufacturing Account (The upper half of P&L Account).

 

Indirect Expenses means Office expenses spent at the time of sales of product.

Compound Unit

Compound Measurement is a combination of two simple measurements.
Simple measurement is used to specify the quantity or unit price of a stock item in round numbers. (Approximate value)
Compound Measurement is used to specify the quantity or unit price of a stock item in decimal values. (Exact value)

Compound measurement can be created by specifying the relationship between two existing simple measurements.
Example:
simple measurements
bg
kgs

Compound measurement created from the above simple measurements:
bg of 25 kgs

In the above example, bg is considered as main measurement and kgs will be secondary measurement.

if you omit the measurement symbol, at the time of specifying quantity or unit price then main measurement will be taken automatically.

Alternate Units

Alternate Units: This is the one that can be used to provide an additional measurement system to specify quantity or unit price for a stock in addition to the main units of measurement.

Enable Alternate Units for a stock item:
1. being in Stock creation/Alteration screen–>press F12
2. Use alternate Units for stock items: yes

The difference between Alternate Unit and Compound Measurement:
We are creating a new measurement in the case of compound measurement while alternate unit is not creating any new measurement.

We will create compound measurement when we want to use the measurement for many stock items.

Godown Management

Godown is the place where company stores goods and material generally.

For each company which is maintaining accounts with inventory, Tally creates a default godown named “Main Location”

In order to change the details of Main location (or) to maintain multiple godowns enable the following option:
F11(features)–>F2(Inventory features)–>
Maintain multiple godowns:yes

Once godowns option is enabled, we can create or manage godowns using:
GOT–>Inventory Info–>Godowns

we can create primary or sub godowns.
Godown created under primary will be called primary or main godown.
Godown created under a main godown is known as sub godown.

To provide additional details (like address etc) for the godown:
being in Godown creation/alteration–>Press F12

Check stock particulars at Godowns:
GOT–>Display–>Statements of Inventory–>Godowns

 

 

Batch & Expiry Details

Enable Batchwise details and expiry dates:
F11–>F2–>
Maintain batch-wise details:Yes
–>Set Expiry dates for batches:Yes

Stock Journal Voucher

Transferring goods or material can be done with the help of Stock Journal Voucher.

Stock Journal(Alt+F7): This is an inventory voucher used to transfer stock from one location to another.

Stock & Market Valuation

Stock Valuation Methods
Stock Valuation method is the system that is using to calculate the value of stock.

Two types of Stock valuation methods in Tally:
1. Cost Valuation: used to calculate the value stock to show in the reports. Eg: FIFO, LIFO, Avg. Price etc
2. Market Valuation: used to show the value of stock in the vouchers. Eg: Last Sale Price, Standard Price etc.

Enable Stock valuation methods:
being in stock item creation/alteration
–>Press F12
–>Allow advanced entries in masters:Yes

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