Accounting with Tally - surajbsutar.files.wordpress.com · 10/2/2017  · Accounting with Tally 1. Open Tally software by clicking on Tally ERP 9 icon. 2. To do that Select Create

Accounting with Tally

1. Open Tally software by clicking on Tally ERP 9 icon.

2. To do that Select Create Company from the menu and hit Enter key. If you are in

Gateway of Tally press Alt+F3 to get that menu. Company info menu will be displayed.

3. You must fill necessary information of the company. Primary mailing details, Books and

financial year details & base currency information.

Directory: Directory means the data storage location, this is the place where Tally store

all the data you entered in Tally ERP 9. By default, the data storage will be inside the

installation folder. You can change it at your desired location by typing it manually. For

example, D:/Tally Data.

Primary Mailing Details: Fill necessary info

such as Mailing name, address, country,

state, pin code.

Contact Details: Fill phone number, mobile

number, fax number, e-mail address, and

website if exist.

Books & Financial Year Details: Financial

year from, book beginning from.

Security Control: You can use tally vault

password and security in it.

Basic Currency Information: Currency

symbol, suffix, etc.

4. Gradually press Enter or Ctrl+A and save it. Your company is created.

Tally ERP 9 provides more than 30 pre-defined groups to save you from unnecessary burden of

creating frequent used groups. There are two types of group creation in Tally. First is Single Group and another is

Multiple Group.

Single Group Creation: We can create only one group by using Single

Group Creation screen.

1. Go to – Gateway of Tally Account Info Groups Single Group.

2. Now you are in group creation screen, type the name of group.

3. Select suitable group in the field ‘Under’

4. Press Enter and save, you are done.

For instance, if you created ‘Administrative Expenses’ group under

Primary group, then you must select the suitable option, whether it is

liability, asset, income or expenses. So, we will choose here Expenses.

But, again we must select whether it is affect the Gross Profit. Suppose,

Creation of New Company

Creating Single/Multiple Groups

we select No, then it will be automatically posted in Profit & Loss Account. And is we select yes, then it will

be posted in Trading Account.

Multiple Group Creation: Here, we can create

multiple groups by using Multiple Group option.

If your business demands further classification of

groups or sub classification of groups. You can do

it easily with tally. Tally ERP9 provide advanced

facility of creating groups under already existing

groups from a single screen. We can utilize sub

groups in reporting. For Example, we are

grouping sales of an electronic retailer company

into Television sale, Refrigerator Sale, Laptop

Sale. Go to – Gateway of Tally Account Info

Groups Multiple Group. And select Create.

The next screen is called Multi group creation screen. At top, most left of the screen there is an

option asking ‘Under group’. This means that in which group the newly creation groups comes under. In our

example, we need sub groups for sales account, so select the ‘Sales Account’ there. In the next field ‘Name

of Group Type’ new group name ‘Television Sale’. Next field ‘Under’ will be filled automatically. Enter the

entire sub group in the same manner. Save the screen by pressing enter. Multi group creation under multiple

group is completed.

In Tally perspective an account itself is called ledger. In Tally software Account = Ledger. For reporting

purpose a ledger is grouped according to its nature. The creation of Ledger depends on the features you opt for in

the F11: Features of your company and F12: Configure. You may configure or set your ledgers to enable or disable

advanced mode.

Tally automatically creates two ledger accounts namely, Cash (Under Cash-in-Hand) and Profit & Loss

Account. You need to create all other accounts heads. There are no restrictions in Ledger creation except that you

cannot create another Profit & Loss Account. Any number of Cash Accounts may be created in any other name like

Petty Cash.

Creation of Ledgers (Under Single Ledger): Before creating Ledgers, you must select your company by

pressing F1 key. Go to – Gateway of Tally Accounts Info Ledgers Create (Under Single Ledger)

Now, you will see a Single Ledger Creation screen in which we

will have to enter certain details about the Ledger.

For instance, we will create the ledger of ‘Building Account’.

1. Enter the ledger name in Name field.

2. Here we select Building as Fixed assets.

3. Choose Inventory value be affected? enter the Mailing

details and Tax registration details if exist.

4. Finally, type the opening balance and press Enter to save

it.

Creation of Single/Multiple Ledgers

Creation of Ledgers (Under Multiple Ledger): You can create

multiple Ledgers at a time in this mode. Go to - Gateway of

Tally Accounts Info Ledgers Create (Under Multiple

Ledger)

Under Group: Select the name of the group under which you

want to create the Ledgers from the List of Groups.

Name of Ledger: Enter the name of the Ledger.

Under: If you want to create Ledgers under all groups then

select All Groups, your under column won’t be skipped.

Opening Balance: Specify whether the Opening Balance is

Debit or Credit.

A voucher is a document that contains details of financial transaction and is required for recording

the same into the books of accounts. For every transaction, you can use the appropriate Tally voucher to enter the

details into the ledgers and update the financial position of the company. The voucher entry menus options are

available under Transactions in the Gateway of Tally. The Payroll and Order Vouchers are available as separate

options which can be enabled based on the requirements. The Payroll Vouchers can be enabled from F1:

Accounting Features, whereas the Order Vouchers can be activated from F2: Inventory Features. But, if the

company is maintained with Accounts Only Company, then Inventory Voucher option will not be displayed under

Transactions.

This is the most important and frequently used area of the tally. Vouchers stores different types of

transactions. Tally has provided separate voucher screen fir various types of predefined voucher for different use.

Every voucher maintained its debit & credit record, voucher name always displayed left side of the corner. Every

voucher has its particular shortcut keys.

By default tally displays single entry mode voucher screen. Press F12 key to configuration screen. You may enter Receipt, Contra & Payment vouchers in single entry mode.

Voucher Creation: Follow this steps;

1. Open the Tally software. 2. First create required Ledgers, which you want use in transactions. 3. Select Accounting Vouchers in Gateway of Tally. 4. You will be landed on Voucher Creation Screen. So, choose voucher such as Contra (F4), Payment (F5),

Receipt (F6), Journal (F7), Sales (F8), Purchase (F9), etc. 5. While entering transactions pay attention about, Reference, Date of Voucher, Particulars, Narration,

Invoice, etc.

Vouchers

Mainly there are two types of Voucher Entry:

Accounting Vouchers

Inventory Vouchers

You can set the configuration for entry to allow only those features, which you are require while entering vouchers. In the Voucher Entry configuration, selectively set only those features to yes. Go to – Gateway of Tally F12: Configuration Voucher Entry Voucher Entry Configuration.

By default, the below configuration options are displayed in the Voucher Entry Configuration screen, which can be modified as per requirement. There are two sections namely, Accounts & Inventory. So, select your desired

options to yes or no and press Enter still it will be prompted to Accept or simply press Ctrl+A.

Contra Voucher accepts all contra entries. And used to record bank to bank, bank to cash & cash to bank. But in updated Tally software some functions are changed. You can maintain transactions with Single or Double entry mode. Go to – Gateway of Tally Accounting Vouchers F4: Contra.

Voucher Rule:

Source of funds/ Bank A/c – Cr.

Destination of funds/Petty Cash – Dr.

Payment voucher is used to record any cash purchase or cash expenses. It can be used for all payment you made through cash, bank. This voucher is always credit and payment can be made by cash or cheque. You can maintain transactions with single entry or double entry mode.

Voucher Rule:

Ledger A/c paid to – Dr.

Cash /Bank A/c – Cr.

Voucher Entry

Contra Voucher (F4)

Payment Voucher (F5)

This voucher accepts all receipt entries. And used to record for any cash sales or cash income funds received by business in cash or cheque. First entry always credit.

Voucher Rule:

Ledger A/c received from – Cr.

Cash/Bank A/c – Dr.

This voucher is used to record non-cash transactions. It is adjustment voucher.

Voucher Rule: First entry must be debited. It is non-cash/bank account.

Sales voucher accepts all sales entries. And used to record when goods are sold on cash/credit basis.

Voucher Rule: First entry must be debit.

Name of the buyers is – Dr.

Sales Account – Cr.

Credit Note (Ctrl+F8): It is useful when return transaction and overdue changing to the customer.

Voucher Rule: First entry is always debit.

Name of the buyer is – Cr. Sales return goods/sales A/c – Dr.

Receipt Voucher (F6)

Journal Voucher (F7)

Sales Voucher (F8)

It accepts all purchase entries. And useful when goods are purchased on cash or credit basis.

Voucher Rule:

Names of the supplier – Cr.

Purchase Account – Dr.

Debit Note Voucher (Ctrl+F9):

It’s used to record purchase returns transaction.

Name of the supplier – Dr.

If you want to edit or alter any voucher information then go to – Gateway of Tally Account Info

Voucher Types Alter.

1. Press Alter command. List of voucher Types

will be opened.

2. Select your desired voucher, which you want

to edit or delete.

3. After editing certain details, press Enter to

accept and save it.

4. But if you want to delete voucher, press

Alt+D key.

Here, important thing is Tally’s pre-defined

vouchers cannot be deleted. And if your created

voucher is combined with any transaction then is cannot be deleted as well.

Reconciling the company’s bank accounts with the banker’s statement is a regular task of

accounting. In tally, Reconciliation of bank accounts facilitates the following:

Ability to ‘check back’ the correctness of reconciliation: Tally uses Bank Date to mark against the voucher.

For instance, if you issue a cheque on 8th April and your bank clears it on 19th April, you would set the Bank

Date for voucher as 19th April. This means that when you need ‘check back’ later, whether the entry made

by you is correct, you will only need to verify the bank statement of the 19th April.

Recovering the reconciliation of any date: This is crucial importance in Auditing. The Bank Reconciliation is

one of the pre-requisite of auditing and verification of the correctness of accounts at the year end. However,

it is not a ‘real-time’ task, meaning auditors do not do it on the first day of the next year. Bank Accounts may

Editing & Deleting of Vouchers

Bank Reconciliations

have a different Starting Date for reconciliation purpose.

When create a bank account, you are prompted to give an

Effective Date for Reconciliation. Normally, this would be

the Books Beginning from date itself.

“Bank reconciliation explains the difference

between the bank balance shown in an organization’s bank

statement and the corresponding amount shown in the

organization’s accounting records, on a particular date.”

To reconcile the bank statement:

1. Go to – GOT Banking Bank Reconciliation

2. Select the name of required bank.

3. The Bank Reconciliation screen will appear; Match every transaction with the bank statement and record

the date transaction date in the ‘Bank Date’ field.

4. Accept the screen to reconcile the bank ledgers as per the corresponding banking statement.

Bill-wise details are pertinent only for party accounts, viz. ledger accounts classified under Sundry

Creditors, Sundry Debtors and Branch/Divisions. Activate Bill-wise details if you wish to track each invoice and adjust

the bills and payments bill-by-bill.

When you make a sales or purchase voucher with Bill-wise turned on, Tally prompts you to identify the

invoice with an appropriate reference number. The reference can then be used to allocate payments to the correct

invoice to maintain an accurate account of outstanding. Hence, Bill-wise details sub-screen comes up for party’s

account during receipt/payment voucher entry or purchase/sale voucher entry or debit/credit note entry.

Features: Keeps our bills systematically, any time we can find out pending bills details, avoid duplicate bill entries,

helps to track bill payment date, etc.

Activate:

1. In the Gateway of Tally.

2. Press F11: Features key.

3. In the Company Features menu, select

Accounting Features.

4. Under Outstanding Mgmt. press yes

against Maintain Bill-wise Details and then

you can active for non-trading accounts

also. Press Enter and save it.

Bill-wise Details

Order processing is the process placing of orders with suppliers for a purchase to be made from them or

receive order from customers for selling. Usually, companies need to track the order details for Sales and Purchases,

this significantly helps in planning the production process accordingly. Order Processing in Tally. ERP 9 can be

classified into Purchase/Sales Order Processing and Job Order Processing. In Tally. ERP 9, Order Processing is linked

to Inventory. This allows tracking of the order position for a Stock Item. Using this you can track the arrival of goods

ordered and whether the ordered Stock Item are delivered on time etc.

1. Purchase Order: is an order placed by a business entity with a supplier for the delivery of specified goods at

a given price and at a predetermined time.

2. Sales Order: is an order placed by a customer for the delivery of specified goods at a given price and at a

predetermined time.

3. Job Order Processing: Can be classified into Job Work out Order & Job Work in Order. Job Work out Order

is an order placed by the principal to manufacture or process goods as per the prescription given to the job

worker. Job Work in Order is an order

received by the job worker to manufacture

or process goods as per the prescription

given by the principal.

Activation:

1. Go to – Gateway of Tally F11: Features

Inventory Features

2. Set Enable purchase order processing to

yes.

3. Set Enable sales order processing to yes.

4. Set Enable job order processing to yes.

5. Accept and save it.

The display of information is designed to allow a user to get the maximum benefit of the data that is

entered. A user gets a holistic picture of the data and is also able to present information using different options.

The purpose of compiling data is to present it in comprehensible accounting reports. On entering the vouchers,

Tally ERP 9 uses the same data and provides you with the management control reports in addition to all books and

statements.

1. Balance Sheet: A balance sheet is a financial statement and reports a firm's financial position standing. This

report shows the balance between assets and liabilities of a firm. The balance sheet follows the fundamental

accounting equation: Assets = Liabilities + Owner's Equity. Go to Gateway of Tally Display Balance

Sheet.

2. Profit & Loss Account: You can view the Profit & Loss account details in Tally ERP 9 for a specified period.

Go to Gateway of Tally Display Profit & Loss A/c.

Purchase Voucher (F9)

Order Processing

Accounting Reports

3. Receipt & Payment Account: You can view the Receipts and Payments account details in Tally ERP 9 for a specified period. Go to Gateway of Tally Display Receipts and Payments.

4. Cash Flow Statement: is the inflow and outflow of cash during an accounting period. A cash flow statement concentrates on the transactions that have a direct impact on cash. It deals with the inflow and outflow of cash between two Balance Sheet dates. That is, it explains the changes in cash position between the two periods. Here the term cash stands for cash and bank balances. Cash flow statements can also be used as receipts and payments statement. This is particularly useful for businesses such as Non Profit Organizations where receipts and payments statements need to be generated. Go to Gateway of Tally Display Cash/Funds Flow Cash Flow.

5. Fund Flow Statement: A Fund Flow statement is a report, which explains the movement of funds during an accounting period. The Fund Flow statement is a supplement to the two principal financial statements. While supplementing the position statement, it describes the sources from which additional fund were derived and for which these funds were used. The transactions, which increase working capital, are sources of funds and the transactions, which decrease working capital, are application of funds. Go to Gateway of

Tally Display Cash/Funds Flow Funds Flow. 6. Ratio Analysis Reports: Ratio analysis is a powerful tool for financial analysis. A meaningful analysis of a

financial statement is made possible by the use of ratios. Ratios are a set of figures compared with another set. The comparison gives an understanding of the financial position of a business unit. There are a number of ratios which can be computed from a single set of financial statements. The ratios to be computed depend on the purpose for which these ratios are required. A single ratio may sometimes give some information, but to make a comprehensive analysis, a set of inter-related ratios are required to be analyzed.

7. Cash/Bank Book(s): Account books record individual transaction details that have been entered. Though the items are posted to different ledgers, Tally.ERP 9 brings together all the transactions of one category into books of account for viewing and printing. For example, the cash book records all the transactions that affect cash. Go to Gateway of Tally > Display > Account Books > Cash/Bank Book(s). All transactions that involve a Bank including deposits, credits, and withdrawals and so on, are displayed in the Bank Book Reports. Go to Gateway of Tally > Display > Account Books > Cash/Bank Book(s).

Export of Data: Use Export to export data (for instance, reports & statements) form Tally. The exported data can be rearranged on a spreadsheet, published on the web or exported to another company using Tally.

Go to report or a statement and click on the Export button or press Alt+E. the export screen displays Export? Yes or No.

On the selecting Default (All Languages) you can export your reports in any of the Indian languages. On selecting Restricted (AASCII Only) you can export your reports in English.

In new Tally ERP 9 has six formats for export of data namely, AASCII, HTML, Excel, JPEG, PDF and XML. Modify the options as per your requirement and accept it. Your data will be exported.

NOTE: Refer Web enabled reporting Answer for more.

Export & Import of data

Import of Data: Data can be imported to Tally from other user of Tally. Tally can also be programmed to import data from other systems to be used as an integrated system. Go to GOT Import of Data. But keep in mind that only the Tally XML format is supported for import of Data in Tally.

For instance, we are importing Masters. Masters can be imported to Tally and merged with the data of the current company. To import masters;

1. Go to – Gateway of Tally Import Masters. 2. Enter the full path of the file in the Import File Name field. 3. Select the appropriate option in the Treatment of entries already existing field from the Behaviour menu.

a) Combine Opening Balance – Select this to combine the opening balance of the imported masters with the opening balance of the current company.

b) Ignore Duplicates – Select when imported entries are the exact replicas of entries in current company, they are called duplicate entries.

c) Modify with new data – Select this to add new data to the current company. 4. Enter to Accept. And you are done.

In new updated Tally ERP 9, you can import Vouchers and Bank Details as well. But Vouchers can be imported in XML format only. And Bank Details can be imported only with Excel format.

We can print the vouchers immediately after saving it or before saving it. So, we will see the voucher

printing while entering transactions.

1. For instance, you are recording transaction in Contra

Voucher.

2. Record first detailed entries and narration to do so.

3. Gradually, before Accept prompts, press Alt+P to print.

4. Voucher Printing screen will be opened. Configure as

per your requirement. And print it.

But, if your voucher is saved and want to print from

other side, then step to be followed;

i) Display Daybook Select date of your voucher Select your desired transaction.

ii) Click Alt+P to print.

Printing Configuration:

Go to GOT F12: Configuration Printing.

1. Select type of voucher who’s Printing Configuration to be changed.

2. Change as per your requirement.

3. Press Enter or Ctrl+A to save it.

Printing of Vouchers

Printing Bills:

1. After transaction is completed, you can

print via pressing Alt+P or simply click on

Print button from the toolbar.

2. You will prompted for print dialogue box.

But if you want to make some changes in

it, just press F12: Features key and

configure as per your requirement.

3. Finally, accept the screen. You are done.

Printing Reports: Reports and documents generated through Tally's extensive display capabilities can also be

printed. The print options in Tally.ERP 9 are flexible and very easy to use. Printing can be done in two ways using

the Print (Alt+P) button and using Multi-Account Printing option. Both these methods yield the same output. For

example we printing a Profit & Loss Account. To do so:

1. Go to - GOT Profit & Loss A/c Alt+P

2. Print dialogue box will be prompted for yes. Before

printing, you can make changes in print language,

titling, etc.

3. Gradually, accept the screen to print.

E-mail and Internet publishing are the Web enabled features available in Tally. It reduces the proper work.

Reports, reminder letters, statement of accounts, invoices and purchase orders can be E-mailed directly from Tally.

Thus, the user does not have to spend printed invoice or purchase orders. This feature helps you to save on postage

and valuable time.

Select E-mailing Customer’s Outstanding Statement from following path:

1. Go to – GOT Display Statement of Accounts Outstanding Ledger.

2. So, List of Ledger will be opened. Then click the desired ledger, which you want to E-mail.

3. Press Alt+M or simply click on E-mail option on toolbar.

4. Mailing Ledger Outstanding screen will be depicted.

5. There are various options that are automatically filled in provided the information had been supplied in

master records. Check if the details are all right. Select Yes or No to change the options. However, to change

the standard information, use Backspace or N key to retype.

The fields that appear in the Mailing Outstanding Ledger screen is briefed below:

E-mail Server & Server Address: Give the name of your E-mail SMTP server e.g. Gmail and server address

smtp.gmail.com:466. This info is entered once and thereafter use it by default.

Printing of Bills & Reports

Web Enabled Reporting

From & E-mail ID: Your company name

will be filled automatically and e-mail ID

as well.

Format: There are 6 formats in Tally

ERP 9 latest software.

i) ASCII (Comma Delimited): It is plain

text format where data is separated

in commas. This format does not

have any special formatting fonts.

ASCII data can be easily worked

upon by other programs.

ii) Excel (Spreadsheet): You can export

data and reports generated in Tally. ERP 9 to Excel by selecting this format. The data is put in columns

and the file is saved with the extension .xls. You can also export data with formatting and background

color as it appears in Tally. ERP 9. You can set the formatting and background color. The Excel file can be

sent as an attachment and used to generate graphs for better presentation.

iii) HTML (Web-publishing): Reports are attractive and retain their formatting and fonts. It can be read with

HTML enabled mail program or using browser like the Microsoft Internet Explorer, Chrome, etc.

iv) JPEG (Image): On selecting this format the specified report is E-mailed as an image file which is stored

with an extension .jpg. The image file generated is non-editable, platform independent and supports the

highest level of compression. You need to specify the paper orientation and paper size. If you are opting

to store the report on a User defined or customized paper size, you need to specify the page width and

height in millimeters. This image file can be mailed as an attachment to a recipient, viewed using an

image viewer and printed.

v) PDF (Portable Document Format): When you select PDF ad the format for mailing the report is

converted to a PDF document which is independent of the application software, hardware and operating

system. This document can be viewed using the Adobe Acrobat Reader commonly known as the PDF

Reader. The data using PDF format, the file is stored in the specified location and assigned the

extension .pdf. You are required to specify the page width and height in millimeters. This PDF file can

be mailed as an attachment to the desired recipient and viewed using the Adobe Acrobat reader or PDF

reader.

vi) XML (Data Interchange): Extensible Markup Language (XML) is an extension of HTML. Using XML, Tally,

enables you to exchange information even with non-Tally system. An XML file from Tally. ERP 9 has an

XML envelope and formatted with XML tags to enable import into other systems.

To E-mail Address: Here you must fill the recipient’s email address but it should be valid.

CC & BCC: For sending the multiple address. CC – Carbon Copy & BCC – Blind Carbon Copy.

Subject: Subject will be prefilled, but you can change it as per your requirement.

E-mail Message (if any): The text in this box will appear as the first lines in the message body of recipient’s

mail program.

Attach File Name: You can change here attachment name. Because, it is pre-filled.