Tally

UNIT-I
FEATURES OF TALLY

Components of Gateway of TALLY- Company creation - creation of groups -

Creation, display and alteration of multiple and single ledgers – Various types of
vouchers – Creation and alteration of vouchers, configuration and print of financial
statements, other reports, documents and vouchers.
UNIT-II
TALLY INVENTORY

Configuration – Creation, display and alteration of inventory master’s – Recording of

various inventory vouchers – Display and print of inventory reports – Lab Exercises
UNIT-III
GST

Enabling tally for GST – Features and classification of GST – Exemptions from GST
Exports and imports, interstate purchases and sales [IGST], Lab exercises.
UNIT-IV
TAX DEDUCTED AT SOURCE [TDS]

Creation of ledgers and vouchers – Advance and balance payment of tax, generation
TDS report, enabling service tax creation of ledgers and recording of vouchers – lab
exercises.
UNIT-V
PAY ROLL

Pay roll features – Enabling pay roll – Creation pf pay heads and ledgers – creation of
employee master’s, pay roll voucher and attendance voucher – Display & Print of
various pay roll reports – Lab exercises.
 UNIT-1
INTRODUCTION TO TALLY & FEATURES OF TALLY

INTRODUCTION:
Tally is accounting software introduced by Tally Solutions in Bangalore. It is powerful
accounting software which was introduced in 1986. The latest version of Tally is
Tally.ERP9 which provides advanced features like remote access data security, .net
features.
FEATURES OF TALLY:
 A leading accounting package:
It is No.1 accounting package in India with more than 1.5 million
users. It has almost 90% share in the readymade accounting package market.
 Complete business solution:
Tally Erp9 provides a comprehensive solution to all the needs of
business. It has the features like book keeping, inventories, pay roll etc. It also
has various tools to extract, interpret and present the data.
 No Accounting Codes:
Tally Erp9 can be used without accounting course, tally users can
allocate meaning full names to various accounts as in the case of manual
accounting.
 POS Invoicing:
Tally allows POS facility by the issue of invoice to customer and
cash book can be recorded automatically. It allows faster data entry and printing
on 40 columns bills.
 Payroll Recording:
Tally has the feature of maintaining pay roll. The data can be
recorded employee wise record of wages and salaries, deductions and
allowances. Pay roll reports, attendance reports can also be generated.
 Customised Security Control:
Tally has customised security system with predefined security
level namely owner level and data entry level. The person at owner level has full
access to all features of tally, a person at data entry level can have limited access
to the features of tally.
 Tax Reports:
Tally has a feature of generating reports related to income tax,
GST, TDS and other reports.
 Accounting Features:
 Tally offers complete accounting features such as ledger creation, voucher
entry, financial statements etc.
 Tally provides various accounting reports such as Profit & Loss statement,
balance Sheet etc.
 Tally offers other accounting reports like Ratio analysis statement, Budget
preparation.
  Accounting receivables and payables report can be prepared by using tally
which helps in identification of default customers.
 Inventory Features:
Tally offers complete inventory management features such as stock items,
multiple godowns, multiple price levels etc.
 Tally offers generation of stock ageing report which is helpful in identification
of stock items about to expire.
 It has feature of recording all inventory related transaction such as receipt note,
delivery note, stock journal, manufacturing journal etc.
 Tally also offers to maintain stock categories, order processing, stock valuation
methods like LIFO, FIFO, Weighted Average, Simple Average methods.
 Data Synchronization:
By using tally financial information shared between head office and
branch office or vice-versa will automatically synchronized.
 Management accounting:
Tally offers various repots relating to management accounting such as
ratio analysis statements, cash budgets, cash flow statements etc… which
provides necessary information for the decision making.
 Management information system:
Tally offers various reports such as customer buying patterns,
debtors payment pattern etc… which will help in analysing and understanding
the business information to take right decisions.

COMPONENTS OF GATEWAY OF TALLY

Gateway of Tally is a welcome window of Tally.Erp9. All

operations are to be carried out through the gateway of tally. Gateway of tally
window is divided into two parts. Left hand side the list of selected companies
are displayed. On the right-hand side gateway of tally menu is displayed with
different options and menu items.
1. Masters:
The master’s menu is used to create all the accounting master’s and inventory
master’s.
 Accounts info:
Accounts info menu is used to create user defined accounting groups,
ledger accounts and user defined voucher types to record all types of
business transactions.
 Inventory info:
An inventory info menu is used to create all master’s relating to
inventory such as stock groups, stock items, units of measure, stock
godowns, inventory voucher types. This menu is helpful to record all
transactions relating to inventories.
2. Transactions:
We can enter all financial transactions in tally with the use of options in this
transaction section.
 Accounting Vouchers:
We enter transactions such as receipts, payments, purchases, sales,
journal, contra etc…, with the use of this option.
 Inventory Vouchers:
We enter inventory related vouchers such as stock journal, delivery
note, receipt note, returns of stock items etc…, with the use of inventory
vouchers.
3. Utilities:
This section is used to work with additional facilities as follows.

 Import Data:
This option is used to get the data from other location or from other
company, also we merge this data.
 Banking:
This option is helpful to perform bank related operations easily such as
Cheque printing, Bank reconciliation, deposit slip, payment advice etc.
4. Reports:
In this section several reports can be generated based on the data we have
entered. We can generate financial statements like P&L a/c, Balance sheet and also
trial balance. We can generate stock summary reports of a company, ratio analysis
statement etc.
5. Display:
This section contains various options to display the recorded company information
such as Trial Balance, Day book, Account books, Inventory Books, Cash flow /
Funds flow statements, Receipts and Payments etc. The options contain in this
block are also used to make changes to the already entered information.
6. Quit:
This option is used to exit from Tally accounting package.
COMPANY CREATION:
In Tally ERP9 we have to create a new company to enter transactions. To
create company, the following path can be used after opening Tally accounting
package.

Gateway of Tally

Press Alt + F3 (Company Info)

Company Info

Select “Create Company”

In company creation window we have to enter the following details to create a
company. Name, Address, country, state, Pincode, contact details, currency details,
financial year details etc.

ACCOUNTING GROUPS

In Tally ERP9 ledger accounts are created and maintained with the help of
accounting groups. Accounting groups is collection of ledger accounts of similar
nature. These accounting groups act as schedules in P&L a/c, B/S.

Before creating a ledger account, it has to be shown under relevant accounting

group. These accounting groups are classified into primary groups and sub groups.
There are 28 pre-defined accounting groups in Tally of which 15 groups are
primary group, 13 groups are sub groups. Out of 15 primary groups 9 groups are
capital in nature and appeared in Balance sheet, 6 groups are revenue in nature and
appeared in P&L a/c.
Primary Groups-
 Primary group consist of Capital account, current assets, current liabilities,
Fixed assets, Investments, loans, suspense a/c, miscellaneous expenses, branches
and divisions, sales, purchases, direct incomes, indirect incomes, direct expenses,
indirect expenses.
Sub Groups-
Sub group consist of Reserves and surplus, bank accounts, cash in hand,
deposits, loans and advances, stock in hand, sundry debtors, duties and taxes,
provisions, sundry creditors, Bank O.D a/c’s, secured loans, unsecured loans.
Creation of Accounting Groups:
We can create user defined accounting groups in tally depending upon need
and nature of business. New accounting group can be created with the following
procedure.

Gateway of Tally Accounts Info Groups

To create single accounting group, we use single group option.

 To create multiple accounting groups, we select create option under multiple
groups menu.
 To display accounting groups, we select display option in single group or
multiple groups.
 To alter any information in accounting groups, we select ‘alter’ option in single
group/ multiple group.

LEDGERS IN TALLY ERP9

In Tally ERP9 ledger accounts are required to record business transactions.
There are two predefined ledger accounts in tally such as cash a/c, P&L a/c.
The following path can be used to create required ledger accounts in Tally.
 1. Creation of ledger accounts:
Gateway of Tally Masters Accounts Info Ledgers Single ledger create
In accounts info menu select ledgers to open ledgers menu and now select “create”
option single ledger section or menu to create one ledger at a time. If we want to
create more than one ledger at a time we select “create” option in multiple ledgers
section.
In ledger creation screen, we enter name of the account ledger, the group of
ledgers, opening balance if any and other details.
2. Display of ledger accounts:
Tally provides the facilities of displaying ledger accounts with the use of
this option we can see all the ledgers created in tally up to the present date also
we can check the balances in the ledger accounts.
Gateway of Tally Accounts Info Ledgers Select “Display”
We can use display option in single ledger to check only one ledger account. If we
want to display all ledger accounts, we use display option in multiple ledger
section.
3. Altering Ledgers:
Sometimes we need to change or modify the details of existing ledger
accounts in such situations we use “alter” option. It is also useful to delete
ledger accounts from the company.
Gateway of Tally Accounts Info Ledgers Alter
If we want to change details of one ledger, we use alter option in single ledger
menu. If we want to change the details of more than one ledger account, we use
‘Alter’ option in multiple ledger’s menu.
To delete a ledger account which is created earlier the following path can be used.
Gateway of Tally Accounts Info Ledgers Alter
Select the ledger account to be deleted from the list then press Alt+D or select Delete
tab in the screen.
ACCOUNTING VOUCHERS
In manual accounting, the transactions are recorded in the form of journal entries
in the journal book or subsidiary books where as in tally transactions are recorded
through voucher entry. Accounting related transactions are entered through
“accounting vouchers” inventory related transactions are entered through inventory
vouchers.
There are predefined 8 accounting voucher types such as
1. F4 - Contra Voucher
2. F5 - Payment Voucher
 3. F6 - Receipt Voucher
4. F7 - Journal Voucher
5. F8 - Sales Voucher
6. F9 - Purchase Voucher
7. Ctrl + F8 - Credit note (Sales Returns)
8. Ctrl + F9 - Debit note (Purchase Returns)

1. Contra Voucher(F4):
This voucher can be used to record the transactions between cash account
and bank account such as cash deposit into bank, cash withdrawn from bank for
office etc.
2. Payment Voucher(F5):
This voucher can be used to record all cash or bank payments such as
payment of expenses, cash purchases, purchase of assets for cash etc.
3. Receipt Voucher(F6):
This voucher can be used to record all cash or bank receipts such as cash
sales, receipt of incomes etc.
4. Journal Voucher(F7):
This voucher can be used to record transfer entries, adjustment entries,
closing entries etc.
5. Sales Voucher (F8):
This voucher can be used to record all credit sales transactions.
6. Purchase Voucher(F9):
This voucher can be used to record all credit purchase of goods.
7. Credit Note (Ctrl+F8):
This voucher can be used to record sales returns transactions.
8. Debit Note (Ctrl+F9):
This voucher can be used to record purchase returns of goods
transactions.
Creation of Accounting Vouchers:
In Tally ERP 9 we can create user defined accounting vouchers as
per the business requirements user defined accounting vouchers can be created
under primary accounting vouchers.
Gateway of Tally Accounts Info Voucher type create
For example, we can create “cash payment voucher”,
“bank payment voucher” as user defined vouchers under primary payment
voucher.

ACCOUNTING REPORTS
Tally contains various reports such as financial accounting reports,
cost accounting reports and management accounting reports. All these reports
can be generated through gateway of tally under reports and display menu, some
important reports are discussed below.
1. Accounting reports in Gateway of Tally menu:
a. Balance Sheet
Gateway of Tally >> Select “ Balance Sheet”
 b. Profit and loss account
Gateway of Tally >> Select “ Profit and Loss A/c”
c. Stock summary:
This report contains closing balance of different stock items at the
end of the year along with their quantity, rate, value.
Gateway of Tally >> Select “ Stock Summary”
d. Ratio analysis:
This statement contains different ratios that are useful to access the
financial performance of a business.
Gateway of Tally >> Select “ Ratio Analysis”
2. Accounting reports in Display menu:
a. Trial balance:
This report can be generated from display menu to check the
arithmetical accuracy of accounting records.
Gateway of Tally >> Display >>Select “ Trial Balance”
b. Day book:
The day book is used to view different vouchers already recorded
date wise. We can also delete or modifying the vouchers already recorded
in Tally.
Gateway of Tally >> Display >>Select “ Day Book”
c. Cash/funds flow:
We can generate cash flow statements, funds flow statement and
cash flow projection reports from display menu. They are useful in
assessment of financial performance of business.
Gateway of Tally >> Display >>Select “ Cash/Funds Flow”

3. Accounting reports in Accounts books:

a. Ledgers:
With this option we can display the transactions entered in each
ledger account.
Gateway of Tally >> Display >> Account Books >> Select “ Ledgers”
b. Purchase register:
It is used to display the purchase of goods month wise transactions.
Gateway of Tally >> Display >> Account Books >> Select“ Purchase
Register”
c. Sales register:
This option is used to display sales transactions month wise.
Gateway of Tally >> Display >> Account Books >> Select“ Sales
Register”
d. Cash/bank books:
This option is used to display cash book and bank account
transactions.
Gateway of Tally >> Display >> Account Books >> Select“ Cash /
Bank Books”
F11 Features ( Company Features in Tally ):
 Company features can be enabled with the shortcut key “F11”. These
features include accounting features, inventory features, statutory and taxation
features, add on features, by using accounting features. We can enable the options of
bill wise details, interest calculations, cost or profit centres, budget controls etc.
 By using inventory features, we can enable stock categories, purchase orders,
sales orders and other inventory features.
 By using statutory and taxation features we can enable the options GST, VAT,
service tax, TDS, TCS options.

F12 Configurations:
We can configure the basic options in tally to work with various features.
We can configure the options like accounts and inventory info, voucher entry, payroll
configurations, printing configuration, e-mailing, data configurations etc. F12
configurations are useful to enable required options while working with tally.