INTRODUCTION TO TALLY

WHAT IS TALLY?-
Tally is accounting software or an accounting package. Tally package was
developed by “Tally solution pvt ltd” in 1988, which was formerly known as
“peutronic pvt ltd”.

It is India’s most popular accounting software. It is simple and most popular and
powerful management software to handle transaction functions such as, financial
accounting, and inventory management, sales &purchases etc.

Versions of tally:-
• Tally 4.5
• Tally 5.4
• Tally 6.3
• Tally 7.2
• Tally 8.1
• Tally 9.0
• Tally 9.0 with ERP

Terms associated with tally:-

ACCOUNTING:-Accounting is the analysis and interpretation of book keeping.

Accounting is process of identifying, classifying, summarizing, recording of
financial transactions.
Accounting basically involves identification, analysis, recording, classifying, and
summarizing, interpreting and communicating information regarding business
transactions, interested persons.

Its features are:

1. Identification and recording of business transactions and events.

2. Summarization and interpretation of accounting information.

3. Communicating the information to the interested persons such as investors,

creditors, owners, government, research scholars, tax authorities etc.

Accounting can be done in two ways: 1. Manual Accounting - Done by clerks or

accountants with a lot of books and registers. (Without using computers) 2.
Computerized Accounting - Doing the accounting work with the help of computers
(Accounting soft ware’s such as Tally, Peech Tree etc)

Transactions are posted in Tally software so that we get processed accounting

information instantly in the form of statements, graphs, ratios etc

TRANSACTION:-Any exchange of goods or services for money is called

transaction. It may be cash transaction or credit transaction.
GOODS & SERVICES:-It is the article in which business deals.
ASSETS:-An Asset is any own physical object (tangible) or right (intangible)
having a money value. In other word, assets are economic resources which are
owned by a business and from which future economic benefits are expected to flow
to the enterprise.
LIABILITY:- The term liability includes to an amount owing by one person
(a debtor) to another (a creditor) payable in money, goods or services, liabilities are
financial obligation to outside parties.
DEBTOR:-The person from whom amounts are due for goods sold or services
rendered or in respect of obligation is called debtors. The debtors are collectively
known as “sundry debtors”.

CREDITORS:-The person to who amounts is owed by the enterprise on account

of goods purchased or service availed or in respect of contractual obligation called
creditor .the creditors are collectively called “sundry creditor”.

JOURNAL:-Journal is book of prime entry. It is used for recording of all

transaction and event of business entity in the first stage.

LEDGER:-The transactions recorded in the journal are transferred in a separate

book called “ledger”. In this book, a separate account is opened and maintained for
each item.

GOLDEN RULES OF ACCOUNTING:-

ACCOUNT DEBIT CREDIT

Real a/c What comes in What goes out

Personal a/c The receiver The giver

Nominal a/c All expenses & losses All incomes & gains

VAT (value added tax):-

It is the amount of tax that is added to the main value of the product. The vat can
be two types, Input vat and output vat.

INPUT VAT:-This is tax paid on the purchases

OUTPUT VAT:-This is amount charged on sales.

VAT RATES:-

VAT @4%-The largest no of goods like medicine and drugs, agricultural and
industrial inputs come under 4% vat rate.

VAT @1%:-The specific category of goods like gold, silver is under 1% vat rate.

VAT @12.5%:-The remaining commodities are under the general vat rate 12.5%.
Tally.ERP 9 - Overview

You bank and pay utility bills from home, why not do your business accounts? Or
call up a stock status report and print a copy from wherever you are? Tally.ERP 9
has been designed with you in mind. Powerful connectivity makes information
available with your staff, CA and other professionals, round-the-clock, in any
place. It's also quick to install and allows incremental implementation-a novel
capability that lets you activate just as many of its functions when required, even
across locations.

At Tally, we have a hard-earned reputation for empowering businesses with stable,

effective software products and Tally.ERP 9 takes this further. Tally.ERP 9 has all
the features required for high-performance business management including remote
access, audit & compliance services, an integrated support centre and security
management, all focused on delivering peace of mind. It is a complete product that
retains its original simplicity yet offers evolved capabilities like statutory
processes, payroll, excise etc. Whatever the demands, Tally.ERP 9 makes life a lot
easier. With an ideal combination of function, control and customizability built in,
Tally.ERP 9 permits business owners and their associates to do more.

Advantages of Tally.ERP 9:

• Powerful remote capabilities that boost collaboration

• Easy to find qualified personnel
• Easy to customize
• Low cost of ownership via quick implementation, Tally Integrator, Support
Centre…
Functions & Features:

Accounting

All your accounting requirements are supported. And more. Accounting, also
known as bookkeeping, is the recording and classifying of financial transactions
into the books of accounts and associated registers.

Let us look at the some of the 'needs' for which businesses maintain books of
accounts:

• To fulfill legal requirements - records as per standards and practices

• To pay taxes to various bodies - statutory needs
• Keep the business running - manage receivables & payables, cash, bank...
• Keep a watch on the pulse of the organization - key performance indicators
• Respond to queries - to locate the right transaction immediately

We have been perfecting this 'simple' recording - accounting - from over twenty
years. All this to deliver better, faster and more flexible ways to fulfill your needs,
not just maintain books of accounts. A few examples will illustrate:

• with the entry of a voucher (this is what we call all accounting transactions) all
books of accounts, all reports, all totals & sub-totals are updated instantly. There is
nothing more that needs to be done - whether you are inserting a forgotten entry,
or correcting one
• Taxation requirements of all the states of India are available, in the prescribed
formats
• Supporting tasks like reminder letters, delayed interest, ageing, bank
reconciliation
• One single dashboard to look at all important business ratios
• Drill down from any report, even the Balance Sheet, right to any voucher or filter
and search
• Data entry in the language of the users choice - and report in any other language
(from the languages supported)
• Mark vouchers that are draft as 'optional' and convert these to final- with one
button click

Financial Management & Controls

Tally.ERP 9 comes with rich features & financial reports that give you the
necessary management and control of your business. A few of these are listed
below:

• Funds Flow & Cash Flow reports – help you locate bottlenecks

• Bank reconciliation - keeps your bank books in sync, and identify unclear
instruments

• Customer Credit Limits - to limit risk of default and large losses

• Budgets - keep tabs on projected expenses against actual

• Mark vouchers post dated - these will reflect into the books of accounts only
on/after that date
• For needs where reports have to consider a transaction that has not happened (say
salaries for this month that get paid the next month) vouchers (called 'reversing
journals') can be marked to 'disappear' for reports post a specific date

• "Scenario" management - helps you with your business forecasting and planning.
You can use optional, reversing journals and memorandum vouchers, to aid in
recording provisional entries that are useful for interim reports

• Multiple inventory valuation. You can decide one valuation method for the
business, and be able generate financial reports using any other valuation method -
as the statutory method may not be appropriate for your needs, your bankers and
for other decisions
• Cash balances can go negative - you can get warned if this is about to happen, or
see reports and make the necessary corrections

• Several business exceptions are available (negative stocks, negative ledgers) - for
you to exercise control over these activities

• A one-screen business ratios with drill down right up to the transactions - help
you to correct course frequently

• Item wise & document wise profitability statements to control revenue leakage
and inappropriate pricing

• Internal audits are supported with audit controls - authorized users can mark
vouchers as 'audited' and can get to see reports on changes made post audit, and
the name of the person making the change
Inventory Accounting & Management

If you deal in goods, of any type, you'll appreciate the Inventory capabilities in
Tally.ERP 9.

You can comprehensively record all types of inventory transactions, using goods
receipt notes, delivery notes, stock journals, manufacturing journals and physical
stock journals. All stock movements are fully recorded and maintained in stock
registers.

Developed for all manufacturers, distributors, wholesalers or traders a small list of

features are briefly described below:

Manufacturers:

• Bill of materials and Manufacturing Journals, to record material conversions

• Compound bill of materials support, for units that contain assemblies
• Multiple locations (go downs)
• Excise for manufacturers, including all documentation and invoice
• Costing for jobs

Distributors & Wholesalers:

• Multiple price lists, with effective dates of applicability

• Use multiple units of measure (say KG's & grams)
• Dual units of measure (say KG's and bags, to support variations as happens in
commodities)

Traders:

• High speed billing, with support for POS printers

• Bar code support
• Automatic application of taxes
• Service billing & service tax
• Integrated sales return in bills
• Print bills (and any other document) in the customers language

Common:

• You can choose to de-link the computed inventory value to automatically appear
in your financial statements - and enter this figure manually.
• Stock ageing reports, to identify slow and non-moving stocks
• Invoice profitability reports to keep a pulse on sale

• Invoice profitability reports to keep a pulse on sales

• Multi-currency transactions - buy and sell across the world - with integrated forex
gain/loss calculations
• Physical stock take records to adjust physical vs. actual stocks
• Maintain batch & expiry details

Tally ERP9

Tally.ERP 9 delivers a rich new set of product functionalities &

technological capabilities. Functionalities deliver technology support
for more areas of your business – Excise for Manufacturers, as an
example – and capabilities offer you opportunities to conduct your
business in ways not easily possible earlier. Tally 9 – its flagship
product (which started as a simple bookkeeping system 20 years ago),
is today a comprehensive, integrated solution – covering several
business aspects of an enterprise. These include, Accounting, Finance
Management, Receivables / Payables, Inventory Accounting, Inventory
Management, BoM based manufacturing inventory, multi-location /
multi-currency / multi-unit handling, Budgets and Controls, Cost and
Profit Centers, Job Costing, POS, Group Company consolidations,
Statutory Taxes (Excise, VAT, CST, TDS, TCS, FBT, etc), Payroll
Accounting, and other major and minor capabilities. For all practical
purposes, it has served as an ERP for small enterprises since the
introduction of Tally 5.0 almost 12 years ago.

Benefits of Tally.ERP 9

Remote Access (New!):

This deceptively simple capability to access your data across the world
from another copy of Tally.ERP 9 is
an exhilarating experience.
• Access data from anywhere – with Tally.ERP 9 installed in educational
mode
(no need to buy another license).
• Access your data from a customer’s or supplier’s location to check up
on dues and inventory – improve receivables and inventory control.
• Your travelling salesmen can access customer information, stock
position and place orders – improve sales efficiency. (remotely creating
vouchers is coming soon)
• Authorize your Chartered Accountant to access your data – he can use
the Auditors’ Edition of Tally.ERP 9 to audit your books as well as
offer professional advice and other compliance services.

Integrated Support Centre (New!): From within Tally.ERP 9, raise

your queries to Tally, your service partner, your Chartered Accountant
and others. See responses as well – even via remote access. As an
owner, you get to see the various queries raised across your
organization – which can point out areas where training is required or
a process needs to be tweaked.

Control Centre (New!): Another new capability enables you to

manage your license on your own (surrender, re-activate and so on) as
well as easily distribute custom codes (TDL’s) and prevent their
misuse.

Tally.NET (New!): Tally.ERP 9 takes full advantage of the connected

world that the Internet opens up via an umbrella of services called
Tally.NET. The capabilities described above are made possible via
Tally.NET. As can be seen from our roadmap document, over time the
list of services available will grow in breadth and depth

Excise for Manufacturers (New!)

• Multiple Excise Registration (Manufacturer & Dealer) in a Single
Company
• Item wise Valuation Methods (Valorum, Quantum, MRP)
• Tariff (HSN) / Commodity Code creation
• Separate Unit of Measure for Excise Reporting
• Excise Invoice book
• Expense / Income ledger apportioning to calculate Assessable Value
• Item wise Duty calculation for different Valuation Methods in a single
invoice
• Printing Rule 11 invoice
• Maintenance & Calculation of duty for Exempt, Export & Special Rate
transactions
• Generation of Rule 11 invoice for Purchase returns
• Availing Full / Partial CENVAT Credit for Input and Capital Goods
• Reversal of CENVAT Credit
• Utilization of CENVAT / Service Tax Credit towards Duty payable
• G.A.R. 7 Challan printing
• Maintaining Invoice Register
• Maintaining RG1 register
• Generating CENVAT Credit Register
• Generating ER1 & ER3 returns
• Maintaining PLA Register
• Excise Computation Report

TDS (Updated!)
• Single Expenses Ledger for Multiple Nature of Payment
• Single TDS Duty Ledger for Multiple Nature of Payment
• Booking & Deducting TDS in the same voucher

• Single TDS deduction for multiple vouchers

• Single TDS deduction for Multiple Nature of Payments
• TDS deduction on partial applicable value
• Retrospective Surcharge deduction
• Party wise configuration for Lower / Zero rate
• Party wise configuration to Ignore IT / Surcharge exemption Limit
• Deduction of TDS on party advance payments
• TDS deduction on Non-Resident (Sec.195) payments
• Reversal of TDS
• TDS Challan (ITNS 281) printing
• Printing Form 16A
• Generate E-TDS
• Printing Form 27A
• Printing of 26, 26Q, 27, 27Q Forms with Annexure(s)
• TDS Computation
• TDS Outstanding Reports
• TDS Exception Reports

Statutory Compliance (New! Auditors' Edition)

• Identifying process by segregating “Possibly Incorrect” Masters and
Vouchers
• Reasoning for Possibly Incorrect
• No need for 100% verification
• Need to concentrate only on Possibly Incorrect
• Taxation based in built rules to provide Possibly Incorrect
• Taxation based payable & paid information
• Taxation based due dates
• Random verification of In Accordance Masters and Vouchers
• Provision to raise Clarification on Master and Vouchers from clients
• Provides facility to record Verification Remarks using Verification
Note

Tax Audit (New! Auditors' Edition)

• Relevant data display as per Form 3CD clause requirement
• Instant Statistics on Audit Listings (Audited & Unaudited Vouchers)
• Provides the facility to record Audit Remarks using Audit Note
• Provision to mark Vouchers for Clarification / Verification from Clients
• Separate Statistics for vouchers altered / modified after Audit
• Generating audit related Reports & Annexure
 Accounting Features of Tally.ERP 9

Accounting Without CODES – lets you define unlimited levels of classification,

with regular names (no more inconvenient account codes), so that you can
manage the most complex ledgers with ease.

Unified Ledgers – integrates your general, sales and purchase ledgers into a
single ledger, organized in groups, for easy management.

Complete Bookkeeping – enables you to record all types of transactions

including receipts, payments, income and expenses, sales and purchases, debit
notes, credit notes, adjustment journals, memorandum journals and reversing
journals.

Comprehensive Accounting – lets you instantly obtain your balance sheets, profit
& loss statements, cash and funds flows, trial balances, and others.

Multi-currency Accounting – offers you flexibility of multiple currencies in the

same transaction and allows viewing of all reports in one or more currency.
Tally.ERP 9 meets the fundamental criteria set out for EMU handling.

Receivables and Payables – enables you to dynamically allocate payments

against invoices with reference to due dates; get reports that are classified,
grouped, and aged to your definitions; generate customizable reminders for over
dues.
Payment Performance of Debtors – helps you identify troublesome debtors and
persistent late payers, thereby helping you make the right decision.

Ratio Analysis – offers you a bird’s eye view of your company, through a single
sheet performance analysis, based on a range of key performance ratios.

Quotations, Orders, Invoice, Voucher and Cheque Printing – ensures real-time

linking of accounts and inventory besides enabling instantaneous generation of
documents, which can either be printed or mailed directly to the recipient.

Budgeting – gives you unlimited budgets and periods. For example: original and
revised budgets.

Security Control – enables you to define security levels for access control.

Powerful Audit capabilities - allows you to track mala fide changes, while
making genuine corrections with unparalleled ease.

"Scenario" management – helps you with your business forecasting and

planning. You can use optional, reversing journals and memorandum vouchers,
to aid in recording provisional entries that are useful for interim reports. For
example, you can use optional vouchers to record provisional sales and compare
with actual. Using automatic reversing journals, you can prepare reports that
include provisional figures, without affecting actual accounts.

Unlimited Cost/Profit Centers with power project oriented reporting – gives you
multi-dimensional analysis and comparisons, with an unlimited classification of
analysis criteria.

Interest Calculation – enables you to calculate interest on dues, loans etc., based
on certain set criteria or specified dates and time periods. You can also customize
the calculation of interest to change after a certain time period, or based on other
pre-defined conditions.

Inventory Features of Tally.ERP 9

Multi-location Stock Control – helps you manage simple single-location, or

complex multi-location stocks, with unlimited classification systems for your
items, and your own units of measure.
Multiple-location Warehouse Management – helps you track stock movement;
allowing you to decide which warehouse to ship from depending on stock
position.

Flexible Units of Measure – helps you track stock, irrespective of the units of
measure. For example, when you buy in tons and sell in kilograms or buy in
crates and sell as pieces.

Comprehensive Recording of Stock Movement – lets you comprehensively

record all types of inventory transactions, using the inventory voucher forms.
Vouchers include goods receipt notes, delivery notes, stock journals,
manufacturing journals and physical stock journals. All stock movements are
fully recorded and maintained in stock registers.

Management Reports – gives you party-wise details of goods bought and sold
and through movement analysis, helps you identify customer buying patterns.
Stock query is a unique single sheet report that gives you information on stocks
at different locations, as well as stock in hand of substitutes.

Stock Ageing – identifies stocks based on age, thus helping you to dispose of old
stocks quickly.

Batch Support – helps you exercise stock control at the batch level, by generating
reports such as ‘batch-wise’ reports and ‘expiry date’ based details.

Comprehensive Order Status Reports – ensures that you stay on top of your
stocks order position. You can also specify re-order levels in absolute quantities,
or based on previous consumption.

Sales & Purchase Orders – enables you to record orders with a complete cycle of
recording and allocation through inventory deliveries, invoicing and accounting -
maintaining the trail right through. Single sheet reports give you details of
current stocks, orders due for delivery, orders due for receipt, or shortfalls, if
any. You can also get party-wise or item-wise details of orders outstanding
and/or fulfilled.

Invoicing – You can print, export, e-mail or publish sales invoices that are
generated directly from Tally.ERP 9. This comprehensive invoicing system
allows flexible handling of charges and taxes. You can choose from different
invoice formats and adopt them as your own, or design a completely different
layout.

Multiple Stock Valuations – allows you to choose from different types of

valuation methods, including ‘First in First out’, ‘Age Cost’, ‘Last in Last out’,
‘Standard’, among others.

Reorder Levels - allows user-defined Reorder levels for any given period, thus
helping you avoid excess stocking of items while ensuring that you don’t run out
of essential stock.

Multiple Price Levels - allows you to pre-define item rates for specific categories
of customers, enabling faster and error-free invoicing and data entry.
Concurrent Multi-lingual Capability – allows you to expand your business
beyond geographical boundaries without worrying about language barriers. You
can maintain your accounts in one language, view reports in another language
and send invoices to your customers in yet another language, all at the press of a
button

TALLY START UP SCREEN

HOW TO START:-

Press alt+w alt+I (silver edition) single user

How to create a company:-

Gateway of tally company info create company

In this page, a company can be created by filling up the details given .after filling
the details it will show a company in main screen .i.e.,
 How to create a ledger:-

Tally main gateway of tally accounts info. Ledger create

VOUCHERS:-

¾ Contra voucher(F4)
¾ Payment voucher(F5)
¾ Receipt voucher(F6)
¾ Journal voucher(F7)
¾ Sales voucher(F8)
¾ Purchase voucher(F9)
Contra voucher:-In contra voucher, only bank transactions are entered
Payment voucher:-In payment voucher, only cash payments are entered

Receipt voucher:-In this voucher, only cash receipt are entered

Journal voucher:-
SALES VOUCHER:-
 PURCHASE VOUCHER:-

INVENTORY INFO.

Stock group creation:-

Gateway of tally inventory info stock group single create
Creating multiple stock groups
Gateway of tally inventory info stock group multiple stock groups create
Display or Alter a stock group
Gateway of tally inventory info stock group single/multiple display or alter

Creating a stock item

Gateway of tally inventory info stock item single/multiple stock item
create
Creating multiple stock items:-
Gateway of tally inventory info multiple stock item create
Stock journal:-
 In stock journal voucher, stocks are transferred from one place to another.

VAT (value added tax):-

Process of vat calculation-
• Set ‘yes’ in vat option in F11 feature
• Create ledger input vat and output vat
• Set yes in vat option of sales ledger and purchase
ledger.
Voucher entry of vat-

In purchase voucher
In sales voucher

PAYROLL:-
• Employee group creation
• Employee creation
• Pay heads

Employee group creation:-

Employee creation:-
Pay heads:-