TALLY

• Tally Solutions Pvt. Ltd. is an Indian multinational technology

company, that provides enterprise resource planning software. It is
headquartered in Bangalore, Karnataka.
• Tally is an ERP accounting software package used for recording day
to day business data of a company. It is used to automate and integrate
all your business operations, such as purchasing, finance, sales, inventory,
manufacturing.
• It's basically an accounting software used by both small and large
companies. Tally has complex business calculations easier. Tally has not
only business accounting easier as well as time saving.
Technological Advantages of Tally ERP 9.
• Simple and rapid installation: Tally.ERP 9 has a simple, menu-driven
installation procedure. The user can install the program files on any drive
if the hard disk has partitions. The user can also specify the name and
directory location of the program files. Tally.ERP 9 uses minimum hard
disk space in the local drive. Its installation on the local disk takes just a
few seconds.
• Data Reliability : The tool is robust that even power failures or machine
shut down during functioning does not affect data stored in Tally
database. Quality data integrity checks at periodic levels ensure complete
data reliability.
• Data security: Tally.ERP 9’s data integrity checks ensure that there are
no external changes to the data. Tally.ERP 9 also uses a binary encoding
format of storage to prevent devious grouping of information.
• Tally Audit : A specified user can be given administrator rights to check
for correctness of entries entered by authorized users and make changes
where required. Audited entries and alterations made are displayed along
with the name of the user who has made those modifications with the
time of change.
• Tally Vault : Data encryption option available in Tally is called the Tally
Vault. Data Encryption Standard (DES) method prevents breaking of
password for the vault.
• E-mail Facility: Tally.ERP 9 facilitates the mailing of any Tally.ERP 9
report or document.
 • Graphical analysis of data: Tally.ERP 9 provides graphical analysis of
data which helps the user to perform deeper analysis. The user can
generate graphical analysis reports such as Sales register, Purchase
register, Ledgers, Funds flow, Cash flow, Stock Item registers and so on.
This helps the management to quickly judge performance and be better
prepared for difficult times.
The features of Tally.ERP9
 Simplicity: Tally.ERP9 accounting software is easy to set up, simple to
use and is designed to simplify the complex day to day activities
associated in an enterprise. It allows easy Keyboard operations and
requires basic knowledge of Accounts and English to use it.
• Auditors’ Edition: A special Auditors’ Edition is offered by Tally.ERP9,
which provides auditing and compliance capabilities exclusively for
Chartered Accountants.
• Remote Access: Tally.ERP9 provides its users with remote capabilities
to access the data from any location at any point in time.
• Scalability: Tally.ERP9 suits any style of business needs and eliminates
the necessity for a business to change its style of operation, in order to
adapt to the nature of the application.
• Power: Tally.ERP9 allows users to maintain multiple companies and
with unlimited levels of classification & grouping capabilities. It even
allows drill-down facility from report level to the transaction level.
• Accounting without Codes: Tally.ERP9 allows accounting with the
regular names without any account codes.
• Flexibility: Tally.ERP9 comes with a flexible option to generate instant
reports for any given period, either month or a year or at any given point
of time besides providing the facility to switch between Accounting &
Inventory reports of the same company or between companies.
• Speed: Tally.ERP9 provides the capability to generate instant and
accurate reports, which assists the management to take timely and correct
decisions for the overall productivity and growth of the organization.
• Real-time processing: Real-time processing allows immediate posting
and updating of books of accounts as soon as the transactions are entered,
thereby facilitating instant statements and reports. It also facilities a real-
time and multi-user environment.
 • Concurrent multi-lingual capability: Tally.ERP9 offers its users with
the exclusive capability of maintaining their accounts in any Indian
language, viewing them in another language and printing them in yet
another Indian language.
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Company Info Menu-

1. Create a Company To create the company, just enter the company name,
address and other details such as financial year, security and the base currency
information on launching tally, select create company.
2. Shut or Close Company In tally, shut the company does not mean that they
delete a company, it means close after working with the company.
3. Select company Once you have a create company, you can load the company
in one of the following way: select the company and open tally > and company
from the list of companies.
4. Alter company If your company address, a phone number, or any other
contact information was not provided earlier or has changed, you can update
search details in tally any changes made to this details will be reflected
accordingly in your report and printed invoices.

How to create a company in Tally.ERP 9?

To create a company in Tally.ERP 9,

Steps Actions Instructions to be followed

Step 1 To open Tally Software Double click on tally icon from
your desktop.
Step 2 To go to Create Company To do this Select Create
Screen (Alt + F1) company from the Company

Info. Menu using up and down

arrow key and press Enter Key.
Step 3 To fill up the Details in In this company creation
Company Creation Screen screen, you should enter all the
details of the company that you
been asked for.
Details to be filled in company creation screen

 Directory

It is nothing but the data storage location. The tally directory will store all
data you entered in Tally ERP 9. Anyway, by default, the data storage will
be inside the installation folder.

 Name

In this field, we are required to type the name of the company, for example.
XYZ INC.

 Primary mailing details

 Mailing name

In this field, we are required to type the name of the company, for
example. XYZ INC.

 Address
In this data field, we are required to enter the address of the company.

 Country

Here we are required to select the country from the list in which the
business Operates.

 State

In this data field, we have to select the state in which we would comply
with statutory laws

 Pin code

Pin code of the location where the office exists.

 Contact details
 Phone no

Enter the Company contact number which we would like to display on

Invoices

 Mobile no

Enter the Contact number of Managing Person to whom any

queries related to Invoicing or Delivery of product, complaint in
the product could be reached to

 Fax No

Enter the Fax number to which any confirmation statements,

ledger copies etc., could be sent and received

 E-mail

Enter the company’s email address to which any product inquiry

and other communications could be made.

 Website
Enter the company’s web address if any

 Books and financial year details

 Financial year begins from

In this data field, you have to type the financial year in which you
want to create a company. Suppose you may be starting company
on December 01 2022, you should enter the financial year from
as 01.04.2022.

 Book beginning from

In this data field, you have to type the financial year in which you
want to create a company. Suppose you may be starting company
on December 01 2022, you should enter the financial year from
as 01.04.2022.

o Starting in the middle of the financial year.

o Companies which are migrating from Manual
Accounting to Tally ERP 9 in the middle of the
financial year.

 Security control

 Tally Vault password (if any)

This data filed is for security purpose. By enabling this field,

Tally ERP 9 Convert tally data into an encrypted format. To
encrypt means, convert data from recognized format to
unrecognized format.
By entering the Tally Vault password, we can prevent
unauthorized access of company data. Now in Latest Tally ERP
9, There is a password strength indicator, which will help you
to set a strong password. Red colour indicates a weak password
whereas peach-orange colour: fair, Yellow is good and Green
colour indicates a strong password.

CAUTION: FORGETTING TALLY VAULT PASSWORD

WILL RENDER THE DATA INACCESSIBLE
  Use security control?

Enabling this data field, we will get complete control over the data,
we can assign users for specific purposes, for example:

 We can assign data entry operators who can access only voucher
entry screens.
 We can assign billing clerks who can access only Sales invoice
voucher
 We can assign Financial managers who can access
financial data’s and reports as the administrator
control his access.

In this data field, we will be asked the administrator name and password.

 Base currency information

 Base currency symbol

In this data field, the currency symbol of the country is auto

selected based on the country of origin fed by you in the
previous data field. There is no need to change this data field if
you are using the same currency for accounting.

 Formal name

This is the formal name of the currency selected in the previous field

 Suffix symbol to amount?

This data field will ask you whether currency symbol is required
for example: prior to amount like ₹4,500

 Add space between amount and symbol?

This data field is like ₹4,500 space in between currency symbol and
amount.

 Show amount in millions?

If we set this data field to Yes, Tally will display the amount in millions
that are in the Balance sheet or other reports. Amount for example
100,00,000 will be shown as 10. [One million equals 10,00,000].
  Number of decimal places

It is a general practice to use 2 decimal places, for example:

o for using Paisa in Indian currency we use 2 decimal place.

o for using cents in American dollar currency we use 2
decimal places
 Word representing amount after decimal

This data field is used in printing, in Indian currency decimal

portion is said to be Paisa. Set this field as per your formal name
of decimal value in your currency.

 Number of decimal places for amount in words

If we set this data field to 1 decimal places in Indian currency,

then while printing 75 Paisa. Will print as seventy Paisa, if we set
this to 2 decimal places, then it will print second fraction like
seventy-five Paisa.

To save the details entered in company creation screen

If you have entered all the details and after verifying it seems to be
right, then you have to accept the screen by pressing Enter and again
Enter to accept and save the details.

Note: If we have enabled the Tally Vault password, then in the next
screen it will ask the Name of the user and Password details. After
entering these details, Tally ERP 9 will create a company and direct
you to the Menu Gateway of Tally Where you can create masters
and enter transactions.

Voucher Types Meaning –

A voucher is a document that contains details of financial transactions and is

required for recording the same into books of accounts. For every transaction,
you can use the appropriate telly voucher to enter the details into laser and
update the financial position of the company.

1. Contra voucher (F4) As per Accounting principle, contra entry is

transaction involved transfer of cash between one cash account to another or
one cash account to another bank that is transaction indicating transfer of fund
from: cash account to cash, or cash account to bank account, bank account to
cash account, bank account to bank account.

2. Payment voucher (F5) Payment voucher used to all accounts of payments

made by company by way of cash or Bank that is expenses paid, government
tax paid, loan and advances paid, creditors payment etc.

3. Receipt voucher (F6) Any a money received from debtor’s against the sales
invoice or on account and for all transactions where money is received
accounted or entered into tally using the receipt voucher.

4. Journal voucher (F7) Journal voucher in a tally is an important voucher

which is used to make all kinds of adjustment entries, credit purchase or sales,
fixed asset purchase entries (in service organisation). Journal voucher is used
for adjustment entry.

Inventory voucher types

5. Sale voucher (F8) Company sales goods on credit or cash sales voucher is
used to record all sales transaction of company Go to gateway of Tally >
Accounting Vouchers > F8

6. Purchase voucher (F9) When a company buys goods on credit or cash

purchase vouchers are used to record all purchase transaction of company. Go
to the gateway of Tally > Accounting voucher > F9

7. Credit note (sales return) (Alt +F6) Credit note is documents issued to a
party stating that you are crediting there account in your books of accounts for
stated reason. It is commonly used in case of sales return, interest charged to
creditors. Go to gateway of Tally > Accounting vouchers > Alt+F6
8. Debit note (purchase return) (Alt +F5) Debit note is a document issued to a
party stating that you are debiting their accounts in your books of accounts for
stated reason and vice versa. It is commonly used in case of purchase return,
escalation or de-escalation in price, any other expenses in incurred by you on
behalf of the party, interest charged to debtors etc. Go to gateway of Tally >
Accounting vouchers > Alt+F5

Reports in Tally-

1. Cash or bank book- It is used for recording all receipt and payments of cash,
including cash purchase and cash sale of goods. Bank book- all transactions
that involve a bank including deposit, credits, and withdrawals and so on, a
display in bank book report. Go to gateway of Tally> Display> Account books>
Cash/bank banks

2. Ledgers You can view a ledger account with the corresponding voucher
details. Go to get way of Tally > Display > Account books > Ledgers

3. Group Summary The group summary statements shows the closing balance
of accounts of selected group for specific period up to current date. The default
view that the sub groups within group. Go to gateway of Tally > Display >
Account books > Group Summary > Select a group

4. Group Vouchers The list of all vouchers having least one ledger account
entry belonging to the selected group. These statement is useful when you want
to list all transaction for particular groups. Go to gateway of Tally > Display >
Account books> Group voucher.

5. Contra Register The Contra register report displays all contra vouchers that
have been passed. Go to the gateway of Tally > Display > Account books >
Control register

6. Payment register Payment register report displays all payment vouchers that
have been passed. Go to gateway of Tally > Display > Account books >
Payment register

7. Receipt Register Receipt register reports display all received vouchers that
have been passed. Go to the gateway of Tally> Display > Account books >
Received register
8. Journal Register Journal Register report displays all the journal vouchers
that have been passed. Go to the gateway of Tally > Display > Account books >
Journal register.

9. List of accounts(charts of account) Tally gives you great flexibility in

setting up your chart of account. It allows you to group ledger accounts right at
the time of creating your account charts. Go to the gateway of Tally > Alter>
List of accounts.

Financial statements and reports

1. Profit and loss account Profit and loss account or income statement is
periodic statement, which shows the net result of business operation for specific
period. All the expenses incurred and incomes in earn during the reporting
period are recorded in profit and loss account or income expenditure account.
Go To gateway of Tally > Profit and loss account.

2. Balance sheet A balance sheet is a financial statement that reports a firm's

financial position at a specific time. The term balance sheet implies that report
shows the balance between two figures. It shows balance between asset and
liability of firm and the owners fund. Go to gateway of Tally > Balance sheet.

3. Trial balance
A trial balance is a summary of all ledgers balance to check whether the figures
are correct and balance. Considering that journal entries are error free and
posted correctly to general ledgers, the total of all debit balance should equal
total of all credit balance Go to gateway of Tally > Trial balance.

4. Day book The day book lists all transactions made in a particular day and by
default display the last voucher entry date of a regular voucher. It could also be
set up to list all the transaction made over a certain period. Go to gateway of
tally > display > Day book.