Tally

TALLY Tally is a financial accounting and inventory valuation system. It is versatile and massive software package, being used by various types of trades and industry. It is accounting without books, so you do your a/c without any Accounting book. It is a comprehensive accounting. It maintains complete range of books of accounting Final Accounts, P&L a/c cash and fund flow, Trial balance and others. The Receivables and Payables provide multiple reports in divert formats. Internet calculations, multiplication standard control, unlimited cost of profit centers’, unlimited cost and periods of accounts can be done. So we can say that TALLY is a perfect business solution. The tally 5.4 version also provides facility of inventory management. To take advantage of full potential of tally, the user has to understand its feature their implication and how to implication and how to implement them into business scenario.

There are some important features that make tally one of the most powerful accounting management software: 1. SIMPLICITY

Tally is one of the simple and complete business solutions available in the world. Anybody who has a basic knowledge of accounts or an average knowledge of English can use Tally. It is easy to learn, configure and use Tally. Tally is not a computerized accounting package but is Accounts on computers.

2. SPEED

A Tally user can get any reports instantaneously for any date/ period and can toggle between reports, either accounting or inventory or even from one

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company to another company instantaneously. The user can also shift across dates in any report without any time loss.

3. POWER

Tally has the power to generate management information, which would help the management in taking correct and quick decisions. This in turn enables faster growth of business. The power of online information made available by Tally helps one in keeping his business under complete control.

4. FLEXIBILITY

Tally is very flexible to use. Tally can adapt to any business needs rather than the user trying to change the way his business is run to adapt to the package.

5. NO CODES

Tally was the first accounting package in the world to introduce the No Codes concepts for Accounts. Tally accepts alphanumeric characters for accounts and inventory masters and hence any accounts or stock items can be created and identified by their names. The codeless concept introduced by tally is now the widely accepted norm across the world today. In case the user wants to use codes, tally supports that too.

6. REAL TIME

Tally updates all reports (from day book to Balance sheets) as and when the transaction are entered and hence does not need any back end or day/period end process to be done.

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Tally provide a great help in managing financial management either it is for single company or for multiple company as well as branch company or for personal account management. The T ally user can also handle companies concurrently i.e. the user can load more than one company and simultaneously work on all or any of the companies loaded by shuffling between companies as and when required. Tally also allows users to group companies and hence provides a consolidated report for the companies grouped. Tally maintains books of accounts in base currency. Tally also allows users to enter transactions in multiple currencies. Tally also allows users to enter transactions in multiple currencies and view reports in any of the currencies that have been created in Tally. The user can thus invoice his foreign customers in their as well receive payments in their currency. If there is any forex gain/loss, then it reflects the same immediately in the concerned parties ledger account. The gain or loss hence derived can be transferred to a forex account by using a journal (use voucher class). The user can also view and a print ledger account in the currency the transaction has been entered. Tally also allows the user to view & print all reports in any currencies.

Advancements made by tally developer day by day makes tally one of the more powerful accounting management tools. There are some features which show the technology advancement of the tally technology.

7. DATA RELIABILITY

Tally offers extremely high reliability data. Tally uses a flexi-field, flexi- length, self indexed weighted file structure for an extremely compact and fast database. Tally is robust and will not be affected even if there is a power failure or if the machine is shut down while the system is still functioning and hence there will be no data loss. Tally uses signaling quality data integrity checks at regular levels to ensure complete reliability of data.

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8. DATA SECURITY

Tally use of data integrity checks ensures that no external change to the data can pass through Tally. It also uses a binary encoding format needs evolve, Tally Enterprise evolves with them bringing about improvements to the cross-functional co-ordination, which helps in improving organizational effectiveness.

9. ALLOW MULTI CURRENCY ACCOUNTING

You can sale purchase orders. This option enables us to use multicurrency system. Click the option to yes to use it.

10. MAINTAIN BUDGET AND CONTROLS

Unlimited budgets records can be maintained. The option allows you to create multiple budgets. There could be a budget for specific purposes i.e. budget for branch, realistic budget etc.

11. ALLOWED 0 VALUED ENTERIES IN VOUCHERS

This option is self explanatory. It allows you to prohibit the entry of zero valued vouchers, as most of the time they are meaningless.

12. MAINTAIN BILLWISE DETAILS

This option allows you to keep track of an account, on bill to bill basis. If you do not need bill wise details, Let this option be set to its default value no. in this case you will only get net closing balances of accounts without any bill wise details.

13. MAINTAIN COST CENTERS'

This option permits you to allocate transactions of certain accounts to cost centers' to determine unit wise performance. It is use for taking decisions.

14. VOUCHER TYPES

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A voucher is the main document record business truncations. Tally provides it pre- defined types of vouchers to record various transactions. Tally gives a scope to the user to define different types of vouchers according to his requirement.

16. DRILL DOWN DISPLAY

It is possible to drill down to grass root level in Tally. One can view any group, ledger or voucher at a particular point of time.

17. CHRONOLOGICAL REPORTING

Tally produces all records on the basis of the data of transactions and not on the basis of data of actual entry. This enables the books of accounts to represent accounts information.

18. REPORTING ON DAY TO DAY BASIS

Tally provides cash books, bank books and other ledger on daily basis. The user can have information on average daily cash and bank balances.

19. REPORTING ON PERCENTAGE BASIS

Tally provides the facility of presenting all financial statements on a percentage basis. This option to show % ages can be activated by pressing f12.

20. FUND FLOW AND CASH FLOW

Tally readily provides fund flow statement by consolidating the information required for it and saves the botheration of user. Tally also takes the movement in cash inflow and outflow by preparing cash flow statement.

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TALLY ENTERPRISETally uses a unique dynamic architecture that gives you a powerful, flexible and amazingly simple solution. It can be rapidly implemented to your unique business processes. So as your business needs evolve, tally enterprise evolves with them bringing about improvements to the cross functional co-ordination which helps in improving organizational effectiveness.

BENEFITS OF TALLY ENTERPRISE

1. It is extremely cost efficient.

2. Can be customized to user’s unique reports.

3. Easily adaptable, by both large and small business.

4. Easy to use.

5. Deployable with ease and speed.

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ACCOUNT INFORMATION

Account information menu contains all submenus related to account. Tally by default activates minimum option (Account Groups, Account Ledgers, and Voucher types) that are required by every user. These options are described below:

1. GROUP

The account group provides us the ability to classify and organize your account and this mechanism is known as classification of account. Group option is divided into two main sub-groups that is single group and multiple groups. Both groups have option to create group, display group and alter group. With the help of these options we can create new group either single group or multiple group, can display groups and also if we need to make any changes we can alter group information.

2. LEDGERS

This is the most commonly used option to view transaction including balances for ledger , for any ledger. General ledger account controls. As in group, it also has two options single ledger and multiple ledgers. Both , Single Ledger and Multiple Ledger have three sub-menus Create ledger, Display ledger , Alter ledger (for any changes ).

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3. ADVANCE OPTIONS

If user wants to activate cost center , cost categories, Budgets and currencies then press <F11> or click on <F11Feature> on the Right Hand Side of the Tally Screen. After doing this, you will get Company Operations Alterations screen which has many options related to Accounting and Inventory which you can activate and deactivate by using Yes/ No options.

a) COST CATEGORIES

As we know that we can allocate transactions to a cost center individually but with Cost Category we can allocate same transactions to multiple cost centers. In other world we can say that we can put more than one cost center transaction within a single cost category. Cost category is also of two types, Single cost category and multiple cost categories.

b) COST CENTER

Tally provides us facility to any individual component. Here the meaning of component is either any project or any process. We can understand it with following it with following example. Consider an ABC company that develops software, web site and is involved in data processing job. There are different departments in company. With the help of Cost Center we can get

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actual costs involved in each department. Cost Center Menu has two options, Single cost center and multiple cost centers.

c) BUDGETS

One of the most important features of Tally is its Budget option. With the help of this option we can maintain Budget for any company. If this option is activated then we can create budgets.

d) CURRENCIES

Currency is the feature which allows us to manage our business in multi currency scenario which is useful for imports and exports business. Tally provides an option for setting Exchange Rates for different currevetica, sans-serif’’ size=’’2’’>currency scenario which allow us to manage our business in multi currency scenario which is useful for imports and exports business. Tally provides an option for Exchange Rates for different currencies. Tally automatically computes gains and loss for Exchange Rates.

4. VOUCHER TYPE

A voucher is documentation of the detail transactions. In other words we can say that it is a journal that contains the information about all transactions. For every transaction we have to enter a voucher in Tally. The voucher entry option is available in [Gateway of Tally] Menu.

5. QUIT

The last option of this section is quit, to return to Gateway of Tally.

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GROUP CREATION

We have two options for group creation, single group and multiple groups. Now we have to see that how these groups are created:

1. SINGLE GROUP CREATION

In single group creation account group is created one by one.

In group creation there is a option of Alias. Alias is a nickname of the master group. So these groups are also recognized by their alias name. Generally Alias are kept in abbreviate form of group name. The advantage of using Alias is that when we have to use group name, we need not to enter full name of group, we can perform all work with Alias name.

There is another option in single group creation “Groups behave like a Sub-Ledger”. Normally in Tally there is no concept of Sub-Ledger but if we want to make it possible we have to set query as “YES”. This enable us to get a clear view of Group balance instead of Ledger wise balance.

2. MULTI GROUP CREATION

With the help of multi group creation option we can create more than one sub-group under any existing or primary group.

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LEDGER CREATION

Tally provides two types of Ledger creation either Single Ledger or Multiple Ledger.

SINGLE LEDGER CREATION

In single ledger creation account ledger is created one by one.

MULTI LEDGER CREATION

With the help of multi ledger option we can create more than one ledger under any existing group or primary group at a time. It will take serial no. of each entry automatically.

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VOUCHER TYPE CREATION

As we already know that Tally provides Eighteen Pre-Defined Voucher types but if we want to create user defined voucher type then we have to follow the following procedure.

1. Press <Enter> key or click on Accounts Info option available in Gateway of Tally Menu.

2. Press <Enter> key or click on voucher Types option available in Accounts Info Menu.

3. Press <Enter> key or Click on Create Option available in voucher Types Menu.

After following the above steps, we will get a Voucher Type Creation Screen in which we have to feed the following information like:

Name of the voucher, Type of Voucher (either pre-defined or user frequently), Method of Voucher Numbering (Automatic, Manual, None ( select any one)). Except these there are some advance entries also which are given below:

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a) USE COMMON NARRATION

In a particular voucher we make different type of entries. If we want to present common description about these entries we have to set this option as YES otherwise NO.

b) NARRATION WITH EACH ENTRY

If we do not want to give common narration, then there is another option to give explicitly narration to each entry. This can be done as option YES, otherwise NO.

c) PRINT AFTER SAVING VOUCHER

If we want to print every voucher after entering it, set this option as YES.

d) USE EFFECTIVE DATES FOR VOUCHER

Make this option as YES if you want to enter effective dates for this voucher.

COST CENTER CREATION

As we have discussed that cost center are of two types single cost center and multiple cost center. Now we have to see that how these cost centers are created.

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SINGLE COST CENTER CREATION

In single cost center creation , cost center is created one by one.

In cost center creation there is an option of Alias. Alias is a nickname of the cost center. So these groups are also recognized by their alias name. Generally Alias are kept in abbreviate from of cost center name.

MULTI COST CENTER CREATION

With the help of this option we can create more than one cost center simultaneously under any existing cost center.

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DISPLAY

This option appears in gateway of tally menu. It provides facility to display information of all accounting records:

a) TRIAL BALANCE

When we double click on this option or press <enter key> on this option, then entire report related to the trial balance of the company is displayed on the screen.

b) ACCOUNT BOOKS

When we double click on this option or press <enter key> on this option then an account books menu is displayed which contains various submenus like cash/bank book, ledger, group summary, sales register, purchase register, journal register. When we double click on a particular submenu or press <Enter> key on particular submenu then report related to that submenu is displayed on the screen. All these reports can be shown in different format such as monthly, weekly, yearly, or daily.

c) STATEMENT OF ACCOUNT

When we double click on option or press<Enter> on this option then an Accounts Statement Menu is displayed which contains various submenus like cost centers, outstanding ( Receivables, Payables, Ledger, Groups)

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and statistics. When we double click on a particular submenu or press <Enter> on particular submenu then information related to that submenu is displayed on the screen.

d) INVENTORY BOOKS

When we double click or press <Enter> on this option then an Inventory Books Menu is displayed which contains various submenus like Stock items, Group Summary, Movement Analysis, Stock Transfers, Physical Stock Transfers. When we double click on a particular submenu or press <Enter> key on particular submenu then information related to that submenu is displayed on the screen.

e) STATEMENTS OF INVENTORY

When we double click or press <Enter Key> on this option then an Inventory Statements Menu is displayed which contains various submenus like Godowns, Categories, Stock Query, Purchase Bills Pending, Sale Bills Pending, Statistics. When we double click on a particular submenu or press <Enter> key on particular submenu then information related to that submenu is displayed on the screen.

f) CASH/FUND FLOW

When we double click or press <enter key> on this option then a cash/fund flow menu is displayed which contains submenus for cash flow and fund flow. When we double click on a particular submenu then information related to that submenu is displayed on the screen.

g) DAY BOOK

This will display day-by-day report.

h) LIST OF ACCOUNTS

This will display list of Ledgers.

VOUCHER ENTRY

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Vouchers creation (Voucher Entry) is the most important thing in Tally. Voucher Entry plays a very important role in managing accounts. We maintain Daily transactions of our business in Tally only through Voucher Entry. During ,Voucher Entry we have to follow few simple steps which are described below:

a) VOUCHER TYPE

In top left corner of the screen there is a list of different types of vouchers. Just by clicking on any one of them we select the particular voucher type which we need to create.

b) VOUCHER NUMBER

Every voucher of account has unique Voucher Number for identification. This voucher number can be automatically generated by the Tally, according to option set in voucher type under Account info. There are three options in tally to generate voucher number.

c) AUTOMATIC

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If we have selected the automatic option then Voucher number is automatically generated by the Tally by incrementing the previously generated number. Cursor does not move on automatically generated number and thus, we cannot change this voucher number.

d) MANUAL

If we selected the manual option, cursor would blink at the voucher number field and we can input this number through keyboard.

e) NONE

If we have selected the None option then voucher number would not appear on screen.

f) REFERENCE

This field does not appear in all type of vouchers. In Sales Voucher, Purchase Voucher, Debit Note Voucher and Credit Note Voucher you will get this field just below the Voucher Type. As ,it is a free field so we can use it according to our convenience, like se can write bill number of sales or purchase order in Reference field.

g) VOUCHER DATE

If we want to change the date of voucher entry then this option is available in the right side of the voucher creation screen, we can press <f2> or just click on it change the easily.

h) VOUCHER ENTRY

For Voucher Entry, first you have to create all ledgers (a/c). Suppose if you forgot to create any ledger and you need it at the time of Voucher entry then simply go to particular option and press <Alt+c>. It will show you Ledger creation screen, from where you can create new Ledger and came back to Voucher entry screen and continue your entries.

i) PARTICULAR

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This option shows the Ledger name (which you created in Ledger creation). Particulars can be of debit type or credit type. Display of To or Cr shows that it is Ledger to credit. Display of By or Dr shows that it is ledger to debit.

j) DEBIT/CREDIT

The amount of transaction is shown either in Debit Column or Credit Column. If we debit a Ledger, then amount goes into the Debit column , if we credit a Ledger, then amount goes into the credit column. At the bottom, total of debit and credit amount appears.

k) NARRATION

Tally provides facility to give description of all transactions. In last there is an option to provide Narration for whole voucher.

TYPES OF VOUCHERS

In older time when accounting was done manually the vouchers were broadly divided in two categories:

1. Cash book2. Journals

But in modern accounting Tally provides following predefined types of vouchers to maintain accounting transactions that are describe one by one below:

1. PAYMENT VOUCHERAll transaction related to paying cash or bank is recorded in payment voucher. All these payments can be of any type such as cash punches, expenses. In payment Voucher the first entry must be Debit and second entry onwards either in Debit or in Credit.

2. CONTRA VOUCHER

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It is used in fund transfer transaction where net inflow and outflow are equal. In other words we can say that net effect is zero. In contra Voucher we can do transaction between cash and bank account only.

3. SALES VOUCHERAll transactions which are taken place due to sales either of goods or of services is entered in sales. In other words we can say that sales Vouchers are used to maintain report related to the sales of goods and services. When you do not want to make entry through invoice use sales voucher ,if we sales goods or services in credit then Creditors a/c is debit and sales a/c is credit.

4. PURCHASE VOUCHER This is similar to the sales voucher but basic difference is that it maintains purchase transaction of the services and goods. Here the credit become the account of seller while debit the purchase account. In purchase voucher the first entry must be credit involving any creditor.

4. JOURNALWhenever we need to make adjustment between different Ledger accounts we use the Journal Voucher, due to this sometimes it is called Adjustment Boucher. The common example of Journal Vouchers is Income Receivables, Provision of Liabilities etc. This is used for non- cash transaction. Consider the condition that you want to make adjustment between to or more Ledger accounts here simply pass the journal voucher without affecting cash or bank account.

6. MEMOSExcept all these predefined Vouchers there is facility in tally to create user-defined Vouchers which is completely depends upon the user needs. User can create different vouchers according to his/her requirement.

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START WORKING WITH TALLY

COMPANY CREATION

For company creation, Press <Alt+F3> or click on create company button on the right hand side. You Find will Company Info Menu. Double Click on create company option or navigate with down arrow key and press <Enter> on Create Company option you will get a company creation screen in which you have to feed the information about new company, Like Name of the company, Mailing Address, Currency which you are going to use Income tax no, Sales tax No, etc.

LEDGER CREATIONIf you are using tally for the first time then you must create following ledger, some examples of ledger and the concerned group in which they fall are given below:

S.NO LEDGER NAME UNDER(GROUP)1. Abs capital a/c Capital a/c2. Sales a/c Sales a/c3. Purchase a/c Purchase a/c4. Salary a/c Indirect Expenses5. Rent a/c Indirect Expenses6. Telephone bills a/c Indirect Expenses7. Staff welfare a/c Indirect Expenses8. Office expenses a/c Indirect Expenses9. Factory expenses a/c Direct Expenses10. Computer a/c Fixed assets11. Furnishers a/c Fixed assets12. Aaa co.ltd a/c Sundry debtors13. Bbb co.ltd a/c Sundry debtors

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INVENTORY INFORMATION

It is necessary for user to analyze Company’s Inventory information if he had selected Account with Inventory option at the time of company creation. In inventory Info option he has manage and what type of items he has to enter in a particular group.

VOUCHER ENTRY

Voucher entries will be done on the basis of different type of vouchers. Like for contra voucher Press <F4>, For Payment Voucher Press <F5>, For Receipt Press <F6>, For Journals Press <F7>, For sales Press <F8>, For Purchase Press <F9> and For Memos Press <F10>.

DISPLAY

To get a view of all the information related to trial balance, Account books, Inventory Books, day book and others use display option available in gateway of tally menu.

MULTI-ACCOUNT-PRINTING

To take the printout of all these views use Multi-account-printing option available in gateway of tally menu.

ADVANTAGES OF TALLY

Tally is concerned to be the best accounting package because of its merits. Many of the features discussed above are in fact merits of tally. The following points further account for populating of tally.

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1. EASY TO UNDERSTAND

There is no need for any technical training in tally. Anybody having knowledge of accounting and English can make use of tally.

2. SPEEDWith the help of tally any type of report for any period can be made available in few seconds. Manual accounting can in no way be watched with tally.

3. FLEXIBILITYTally is quite flexible and changes can be made in the system as per the requirements of the users.

4. SAVING OF TIME AND EFFORTThere is no wastage of time and efforts. Tally helps in saving time and efforts which could be used elsewhere to manage business in a better way.

5. CODES NOT MANDATORYTally does not require any codes to be followed in the system. Accounts and stock items can be entered by their names as such. Tally was the first package in the world to introduce the no codes concept tally supports.

6. USER FRIENDLYTally is user friendly and provides online help the user can make use of tally just by regarding what appears on the computer screen.

7. QUICK AND PROMPT DECISIONSTally enables the management to make prompt and better decisions. Management does not have to wait for reports, they are readily available in the manner required by the management.

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8. CONTROLBusiness can be controlled in a better way through tally. Everything is systematic and there is no space for any irregularities. Internal check is automatically exercised by tally.

9. RELIABILITY OF DATAThe data provided by tally is extremely reliable the data will not be affected even if there is power failure or the computer is shut down which the system is functioning and hence there will be no data loss.

10.SECURITYTally provides great security the user can have individual passwords and define multiple levels of security as per his needs.

11.EASY INSTALLATIONTally has simple and rapid installation. It has a simple menu driven installation procedure. Its does not take more than one minute to install tally on the local hard disk.

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