Accounting Voucher Types

Accounting Vouchers
Accounting Vouchers
Session -2
Vouchers
In computerized accounting, we record transactions through voucher entry. A voucher is a
basic recording document. To input any data in Tally you must use a voucher. Inputting data
through the voucher entry mode may be called creating a voucher or voucher entry.
Tally is pre-programmed with a variety of accounting vouchers, each designed, to perform a
different job.
Tally gives us two types of voucher:
1.
Conventional
2.
Unconventional
Conventional Vouchers
Conventional vouchers are used to record all accounting transactions. These vouchers directly
affect to your final Account. It tally we have different types of conventional vouchers:
Types of voucher (Conventional):

Vouchers
Contra
Payment
Receipt
Journal
Sales
Purchase
Debit Note
Credit Note
Shortcuts
F4
F5
F6
F7
F8
F9
Ctrl+F9
Ctrl+F8
Functions
To Create A Contra Voucher
To Create A Payment Voucher
To Create A Receipt Voucher
To Create A Journal Voucher
To Create A Sales Voucher
To Create A Purchase Voucher
To Create A Debit Note Voucher
To Create A Credit Note Voucher
Selection of Voucher at the time of transaction:

We give you a visual guideline to decide appropriate voucher type that is suitable to
record the transaction:
Contra Voucher (F4)

Contra voucher is for entering Fund transfer Transactions where net inflow and
outflow are equal, i.e. net effect is Zero. In contra voucher you can enter transaction
between cash and bank. As per accounting rules, Contra Entry is a transaction
indicating transfer of funds from:
1.
Cash account to Bank Account
2.
Bank account to Cash account
3.
Bank account to Bank account
Payment Voucher (F5)

All transaction related to payment (by cash or bank) are recorded in payment
voucher. Such payments can be towards purchases, expenses, acquisition of fixed
assets, dues to creditor, loans/advances given by you or repayment of
loans/advances taken by you earlier etc.
Receipt Voucher (F6)
All inflow of money (in cash or through bank) are recorded through receipt voucher. Such
receipts may be towards any income or from your debtors or loans/ advances given earlier etc.
The voucher is similar to the payment voucher except that you debit cash or bank A/cs and
credit the ledger form which you receive.
Journal Voucher (F7)

Journal entries are used in instances where the company requires adjusting the debit and credit
amounts without involving the cash or bank accounts. Hence, they are referred to as adjustment
entries.
Sales Voucher (F8)

Any sales transaction (whether for goods or Services) are entered in sales Voucher. In case of
cash sales, you receive payment immediately by cash or by cheque or credit card and since you
do not require to track outstanding (as payment has already been received so there is no need to
create a separate ledger for the buyer who has paid immediately).
Note: All Credit sales transaction is entered in sales voucher.
Purchases Voucher (F9)

Any purchases transaction (whether for goods or Services) are entered in Purchase Voucher. In
case of cash Purchases, you make payment immediately by cash or by cheque or credit card
and since you do not require to track outstanding (as payment has already been made so there is
no need to create a separate ledger for the seller who has paid immediately).
Note: All Credit Purchase transaction is entered in Purchase voucher.
Debit Note (Ctrl+F9)

By default Debit Note voucher would not be available. If you make entry in debit Note then
you have to active this option from F11 company Features. Normally a debit note is entered
when you make purchases return or have short-billed a customer or your supplier have granted
credit to you on account of rate difference, discount etc.
Credit Note (Ctrl+F10)

By Default Credit Note Voucher Would not be available. If you make entry in credit Note then
you have to active this option from F11 company Features. Normally a credit note is entered
when you make sales return or discount/ Rebate or due to some reason now you like to square
off a debit balance.
Unconventional Voucher
These special vouchers are used to record provisional or non-accounting transactions. They
dont clutter the main books of accounts with unnecessary entries and at the same time make
the information available. These vouchers enable valuable reports in terms of provisional
accounts and forecasting. This aspect of reporting has been dealt with under a separate section
Scenario Management.
Types of vouchers (Unconventional)

Vouchers
Memos
Rev Jrnl
Optional
Post dated
Shortcuts
Ctrl+F10
F10
Ctrl+L
Ctrl+T
Functions
To Create memorandum voucher
To Create Reversing journal voucher
To Make a voucher as Optional voucher
To Make a Voucher as Post Dated Voucher
Accounting Vouchers
Memo Voucher
This is a non-accounting voucher and the entries made using it will not affect your accounts.
That is, Tally does not post these entries to ledgers but stores them in a separate Memorandum
Register.
Some uses for Memo Vouchers
1.
Making suspense payments
2.
Vouchers not verified at the time of entry
3.
Items given on approval
Reversing Journal
Reversing journals are special journals that are automatically reversed after a specified date.
They exist only till that date and are effective only when called for in reports like the Balance
Sheet. These are used in interim reporting in the course of the financial year where accruals are
required to be reported. These accruals are usually short term and are cleared in the subsequent
period. However, to get a proper perspective, decision makers require the reports with full
impact of all aspects and transactions
Use of optional vouchers

1. If a transaction has not been completed, you may not want it to affect the accounts.
But you want to record it so that you simply modify the voucher and remove the
Optional mark by Regular it. Display the voucher in Alter Form and click on
Regular.
2. You might want to see the impact of transactions without actually posting them.
Optional vouchers allow you to do this.
Post-Dated Vouchers
While entering vouchers, you can post-date them, an tally will not update the ledgers until the
date in question. This is most useful for entering transactions that take place on a regular basis.
For example, if you pay for something by installments, you can set-up the payments in
advance, and tally will only enter them in the ledgers as they fall due. Mark vouchers Post
Dated by [CTRL]+[D] or click on the button. The button toggles with Regular
Scenario Management
Scenario management is a management tool that enables different displays of accounts and
inventory related information, by selectively including certain types of vouchers without
affecting the source date. It is useful in generating provisional report, where entries are not
actually made in the main books. It is also a useful forecasting tool i.e. you can forecast the
expense using provisional Vouchers and include them in your reports.
The vouchers that are used in Scenario Management are:
Optional Vouchers
Memorandum Vouchers
Reversing Journals
Creating a Scenario
Set Use Reversing Journals & Optional Vouchers in F11: Company Features to Yes.
Gateway of Tally Accounts Info Scenario Create
1.
Name
Give a suitable name to the scenario. In this case, it is Provisional.
2.
3.
Set Include Actual to Yes

Set Exclude Forex Gains/Losses Calculations to yes if you do not want the
unadjusted forex Gains/loss element to appear in the scenario
4.
Set Exclude Inventory
Tracking Calculations to Yes if you do not want the sales/purchase bills pending
element to appear in the scenario
5.
Include
From the list of vouchers, include the type of vouchers required. Notice that it picks
up the voucher Types created for this company. Provisional vouchers and Regular
vouchers that are marked Optional are permitted for selection.
6.
Exclude
Exclude from the list of vouchers already included in the type of vouchers that you
do not want to affect this scenario. This option is used in Alter mode and hence is
discussed under Alter/Display scenario Information.
Accept to create this scenario.
Alter or Display Scenario information

1.
Gateway of Tally Accounts Info. Scenario Alter
2.
Select the scenario to alter from the List of Scenarios
The information given while creating the scenario displays and you can alter it.
Exclude
Use the Alter mode when you do not want a selected included voucher to affect the
scenario, anymore. It is easier to put the selected voucher in the Exclude List, rather than to
remove it from the include List.
Using Scenarios
Create a Reversing journal Entry for the scenario as follows.
1.
Gateway of Tally Accounting Vouchers F10:Rev Jrnl
2.
Select Reversing Journals from the list.
3.
Debit Depreciation and enter the amount
4.
Credit Provision for Depreciation
5.
Enter narration if any.
6.
Accept the voucher.
Accounting Vouchers
Using Scenarios in Statements and Reports

You can use scenarios in statements (not registers) that have the New Column button
active.
1. Display the Balance sheet.
2. Select New Column.
3. In the column details, tab down to Types of Values to show
4. Select the scenario named Provisional.
Entering Voucher
The Voucher Entry Screen
The main voucher entry area

This is where you enter your transactions this screen contains fields fo date, ledger
name and amount as well as additional pop-up screens that are dependent upon your
voucher configuration.
Direct commands area

Displays the commands you type into this area, and in the current version of Tally, is
limited to calculator functions.
Buttons toolbar
Displays buttons that provide quick interaction with Tally. Only buttons relevant to the
current task will be visible.
Switching between screen areas
On selecting Voucher Entry from the Gateway of tally, you are taken to the main
voucher entry area. However, you may toggle between this and the Direct
commands/calculator area at the bottom of the screen, by pressing [Ctrl]+[N]+[M] as
indicated on the screen. The active area of the screen is highlighted by a green bar,
[Ctrl]+ [N] to go to the Calculator/Direct Commands area and [ctrl]+[M] for the
voucher entry area. Use calculator by [ALT]+[C] when in amount field.
Special Keys for Voucher Narration Field

ALT+R: Recalls the last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.
Contra Entry (F4):

Gateway of Tally Accounting Vouchers Selecting
F4: Contra
Example:
Cash deposited into the bank Rs. 50000/-
Payment Entry (F5):

F5: payment
Example:
1.
Rent Paid Rs. 5000/2.
Salary And Adv. Expenses paid Rs. 6500/-&
Rs. 2500/3.
Cash Purchases Rs.3000/-
Receipt Entry (F6):

F6: Receipt
Example:
1.
Cash sales Rs.8000/2.
Comm. Received from Ram Rs.500/3.
Interest Received Rs.250/-from ICICI bank
Journal Entry (F7):

F7:Journal
Example:
Depreciation Machinery & Computer Rs. 1,250/- &
Rs.480/-
Sales Entry (F8):

F8
Example:
Goods sold worth Rs. 5000/- to IFCA Trading Co. on
credit.
Accounting Vouchers
Credit Note (Ctrl+F8)

Ctrl+F8,
Example:
Goods return worth form IFCA Trading Co. Worth Rs.
450/-
Purchases Entry (F9)

F9,
Example:
Goods purchase worth Rs. 2500/- from king & Co. On
credit.
Debit Note (Ctrl+F9)

Ctrl+F9,
Example:
Goods return to king & Co. worth. Rs. 500/-
Exiercise
1. Pass the following transactions:
2005
April 5
Introduce furniture worth Rs. 15,000 for business.
April 7
Received a cheque of Rs. 14,000 from Amar in full settlement of his
account.
April 12 Amars cheque is dishonored and bank charged our account of Rs. 20 for
bank charges.
April 15 paid Rs. 2,850 to Mohan in full settlement of his account.
April 25 cash withdraw from the bank Rs. 5,000 for petty cash.
April 30 Cash withdraw form the bank Rs. 500 for personal use and Rs. 1,000 for
office use.
May 3
Paid wages 200, trade expenses 650, advertisment expenses 1,500 and
stationery expenses 275 from petty cash.
May 10 Sachin was declared insolvent and a payment of 60 paise in a Rupee
received form him.
May 16 Paid Rs. 4,000 and 3,000 to Shyam and Ram respectively.
May 27 Received cheque from Nitin in full settlement of his account after allowing
his 5% cash discount and cheque deposited into the bank same day.
May 29 Withdraw from bank Rs. 500 for personal use and Rs. 1,000 for office use.
May 30 Purchase two computers worth Rs. 15,000(each) for resale from J.K.
computers.
June 3
Payment made to J.k. Computers.
Hint:
match the figure of Trial Balance 6,61,125.
Advance Accounting Features [F11]

Session -3
The different features of a company can be selected or modified by F11 button. This button is
available is available in almost all screens of tally as you might wish to modify it as your
requirements change.
1.
Accounting Features<F1>
2.
Inventory Features<F2>
3.
Statutory Features<F3>
Accounting Features<F1>
General
Integrate Accounts with Inventory
Effect on Balance Sheet and Profit & Loss Account
The option in F11: Accounting Features>General has a significant effect on the Balance
Sheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures
from the inventory records and provides a drill down to the stock registers from the Balance
Sheet.
Income/Expense Stmt instead of P&L

Account statements for Non-Trading organizations. For NonTrading accounts like accounts for charitable organizations, the
trading and Profit & loss statement are irrelevant. They need and
Income & Expenditure Account. They should activate the feature
in F11: Accounting Features>General and set the option
Income/Expense Stmt instead of P&L to Yes.
Note: The Profit & Loss Account is now displayed as Income & Expenditure Statement.
Multi Currency
Allow Multi Currency
For many organizations, globalization of business has necessitated working with more than one
currency. Transactions are often made in currencies other than the home currency. Such
transactions have to be recorded either in the home currency or in the foreign currency. It they
are recorded in home currency, the rate at which the foreign currency is exchanged for the
home currency should be recorded as well. Sometimes you need to record the transaction in
foreign currency itself. This would arise when you maintain the balance of the concerned
account in foreign currency. Tally uses the term base currency for the currency in which your
account books it kept (typically in home currency). Foreign Exchange is used interchangeably
with foreign currency. Tally has attempted to make the complex task of handling multiple
currencies very easy for you. You would find some new ways of working with multiple
currencies, automatic calculations of exchange rates, automatic conversion of any currency
used to record a transaction to the currency of the account, etc.
You must first activate multi-currency capabilities.

Gateway of Tally [F11]: accounting features
Multiple Currency
Now, let us work with currencies.
Currency
The Currencies menu has the usual create, display and
alter options. There is an additional optional option,
rates of Exchange. We shall examine each option in
greater detail.
Create a Foreign Currency Master
You will now need to create the foreign currencies that would be used.
Gateway of Tally Accounts Info. Currencies Create
Symbol
: Give the Currency symbol, as it should appear in all reports.
Formal Name
: This is meant for the name of the currency, e.g., U.S. Dollars, Pound
Sterling, Indian Rupees, etc. you are not allowed duplicates.
Number of
Decimal places
: Give the number of decimal places for the currency.
Show amounts
In Millions
: Tally has two formats for displaying an amount, viz., in millions and in
Lakhs. 1000000 (one followed by six zeroes) in millions format would
appear 1,000,000 and in lakhs 10,00,000. Selecting No would mean
you want amounts to appear in lakhs.
Is symbol suffixed
to amount
: Normally currency symbols are prefixed. However, if you want it to
appear after the amount, select yes.
Put a space
Between amount
And symbol
: This is purely for aesthetics. Select Yes for amounts to appear like $100/,
No for $100/- If you put a. after a prefixed symbol, do not opt for a
space. This could be found suitable for currencies like Rs. Where
amounts would appear Rs.100/Display/Alter Currency
If you do not have multiple currencies, the Alter screen is identical to the Display screen. When
you have more than one currency, select the currency whose details are to be display, Altered.
Rates of Exchange
The screen always comes up in Alter mode:
Date for Rates

Of Exchange
: Rates of Exchange operate on day-to-day basis. Hence, you can specify

the rates of different currencies for a day.
Note: the date column in the previous alter screen.
Standard Rate
Selling Rate
Specified Rate
Buying Rate
Specified rate
: The standard rate is used to calculate variances from the actual

transaction rates. You may choose to leave it blank.
: This is the rate obtained form the daily newspaper or your banker. If you
input this rate before any transaction entry, while entering a foreign
exchange transaction, this rate will be brought up by default. (you nay
still change the actual rate). Selling rate is your selling rate (as opposed
to banks selling rate. Banks will buy currency from you in this case)
used for receipt voucher entry where you receive foreign exchange.
: this is the rate at which you would buy the foreign currency (as opposed
to banks buying rate. Banks will sell currency to you in this case).
Hence, it is used in payment vouchers.
Multi Currency in Voucher

Example: Mr. King Purchased goods from Samsung Pvt. Ltd. Worth $130.
Invoicing
The default invoice formats have a variety of configurations options. Using them you may print
your invoices, You may not need to create new invoice formats. It is recommended that you
attempt to configure the default invoice itself. However, should you finally feel that the invoice
does not meet the needs; you can design a new invoice using Tallys Definition Language
Report Designer. The TDL is quite an advanced language with which you can create new
reports and screens. You may even modify existing reports and screens. However, it is a
specialists job and would require advanced training.
Debit Note/ Credit Note

Debit note is entered when you make purchases return or have short-billed a customer or your
supplier have granted credit to you on account of rate difference, discount etc. Credit Note is
entered when you make Sales Return or discount/Rebate or due to some reason now you like to
square off a debit balance.
Outstanding Management
Maintain bill wise detail
Yes, if you wish to give a bill-wise breakup of the ledger balance including the
opening
balance.
The
following
information for all pending bills of the
previous accounting period would be
required when entering the Opening
Balance:
Date
Name
Due date
: Since you are giving

the break-up of the
opening balance, the
date of the bill
would naturally be
prior to the accounting period. To end your list of entries, leave the Date
or name blank.
: Give a name to which you can later refer when adjusting the bill.
Typically, you would give the bill no or document number. Remember,
the purpose of the break-up is to enable you to adjust it later when the
relevant transaction is squared off.
: Give the credit period or the date when the bill is due. You may give
either. Tally automatically calculates the other. Another of those small
conveniences that make life easier.
Note: During transaction entry, there would be another concept-that of effective date. If you opt for using
effective dates instead of bill dates the due would be calculated accordingly
Amount
Types of Ref.
Advance
Against Ref.
: For the amount of the bill due. You would give particulars of all the
pending bills one by one. Tally fills in the difference between your
Opening Balance, and the sum of the bills, and reflects it as On
Account at the bottom of the screen. If all your bills exactly cover the
opening Balance, the On Account becomes NIL.
: A pop-up window appears to select Method of Adjustment:
1. Advance 2. Against Ref.
3. New Ref 4. On Account
Select Relevant Type of Adjustment, Normal practice is listed below:
: when you make a Receipt or Payment as Advance against a Future
Sales/Purchase, entered as Advance.
: When payment is received or made against any exiting bill (already
entered as New Ref.) or a bill is raised against earlier Advance, it is
New Ref.
On Account
entered as Against Reference which reduces the outstanding amount to

the extent of the adjusted amount. At Name field, you should give the
bill Ref (either by selecting from List of Bills or by entering Reference
Number-depending on your configuration) against which Bill the current
entry should be adjusted.
: When a new bill is entered (Sales or Purchase voucher) or when duplicate
payment/ receipt for already cleared Bill comes up comes up-treated as
New ref. the New Ref. is added to List of outstanding. At Name field,
enter an Identity for the bill (normally bill#)
: When a payment is received or made but not against specific bill (or bill
reference is not know). It will not appear while entering Sales or
Purchase voucher. On Account transactions do not effect bill-wise
outstanding as you do not adjust the transaction against any Bill. It
however reflects in the net balance of the Ledger.
Interest Calculations
Tally 9.0 allows you to obtain reposts on interest calculated by Tally based on the instructions
you furnish. Interest figures are typically desired in the following situations:
1.
On outstanding Balance amounts
2.
On outstanding bill/invoices/transactions (Receivable and payable)
Tally gives you an exhaustive capability to obtain interest implications on both.
Set-up required
You first need to activate the feature for the Company and then activate it for each specific
ledger account for which interest in to be calculated.
F11: Accounting Features contains the option to activate Interest Calculations for the
Company. Look at the outstanding management in this screen. The questions asked of you
are:
1.
Activate Interest Calculations? Set it to yes.
2.
Use Advanced Parameters? Set it to Yes.
Advanced Mode
Advanced Parameters Interest Calculations on outstanding Balances
Following extra options now become available:
1.
You can now have multiple rates of interest.
2.
Choice of balances all Balances, Credit Balances only, Debit Balances only.
3.
Applicably period when is the interest applicable from and to which date.
4.
Choice of methods for Rounding off of interest amounts.
A brief explanation on each is called for:
Balances
Interest can be calculated on all outstanding balances whether debit or credit. You would like to
select only credit balances in case of accounts like bank accounts if you want to know the
interest that the bank might charge on overdrawn balances.
Applicable from
The date from which the rate is applicable to a specific date. If left blank then it is up to the last
date.
Rounding off
Whether the amount is to be rounded off normally or upward or downward. You need to give
the rounded to amount. E.g. round off upwards to the nearest 10.
The advanced parameters are particularly useful where interest rates change from time to time.
You may want to set your Bank Ltd interest parameters as follows:
Display Report Interest on Outstanding Balances

Display Statement of Accounts Interest Calculations Receivable/Payable
Budgets
Tally allows you to create multiple budgets. There could be a budget for specific purposes, e.g.,
for the bank, for the head office, optimistic budget, realistic budget, pessimistic budget, etc.
Departmental budgets can also be created, e.g., Marketing Budget, Finance Budget, etc.
As usual, you first create budgets. You can of course alter them.
Budget figures are used to compare against actual and to display
variances. This is done by bringing up anew column when
displaying a statement and selecting the appropriate budget.
We shall now go through the creation and alteration of budgets.
Gateway of Tally Account Info. Budgets
Operate Budgets
Gateway of Tally Account Info. Budgets Create
Name
Give the budget a name, in this case, Corporate Budget. As you may have other budgets as
well, the name distinguishes them.
Under
In the true Tally tradition, you can have a hierarchical budget set-up. At the top level is the
Primary budget. You can set up more than one Primary Budget.
Period of Budget
Specify the period of the budget. The period could be a month, a year or any period starting
from any date top any date.
Set/Alter Budgets
You may want to set the budget for groups of ledger accounts or for ledger accounts or
for ledger accounts individually or all of them. We shall take up budget for group only.
Follow the same process for same process for setting budgets for individual ledgers and
const centers.
Budget for Groups

Yes, if you want to set budgets for group or
groups of ledgers.
If yes, fill in the fields in the Group Budget
sub-screen:
Account Name
Give the names of the groups for which the budget is being set.
Type of Budget
Budgets could be of two types:
On Nett Transactions
Where transaction amounts are to be monitored and not the balances. Nett is net of
debits and credit for the specified period. Hence, Nett transactions for Indirect
Expenses would mean the debit amount for the specified period after reducing the
credits for the same period. Opening and closing balances notwithstanding.
On closing Balance
Where you wish to monitor the balance of the accounts and are not too keen on
the transactions., e.g., balances of Bank Accounts, Balances of debtors.
Amount
The budget amount for the account.
Budget for Ledger Accounts

Gateway of Tally Accounts Info. Budgets Create
Name for the Budget

1. Give the name of Budget E.g. Financial Budget under Primary budget.
2. Specify the period of the Budget. The period could be Month, a Year or any
period starting from any date to any date.
3. Under Set/Alter Budgets of, you may set the budget for groups of ledge accounts
or for ledger accounts individually or all of them.
4. Here we shall take up Budget for ledgers. Hence, set Yes under Ledgers and let
others remain No.
5. Select the ledgers for which you wish to set the Budget.
Type of Budget
Under the Type of Budget a pop-up of two different kinds of Budgets appears.
On closing Balances
Where you wish to monitor the balance of the accounts and are not too keen on
the transactions. For e.g., balances of Bank Accounts or Debtors. This means that
the magnitude of transactions is ignored. You are concerned only with the amount
remaining in the account. This is useful for Balance Sheet items.
On Nett Transactions
If you are concerned with the magnitude of transaction amounts use this option.
Revenue items reflect the transacted amounts. Why nett? This is because you do
not expect to have a negative figure in such accounts and if they exist, they are
adjustments. E.g., an expense account like travel will always have debit entries
only unless there is a reversal due to error or charge to a customer.
Caution
When using Net Transactions, the Budget closing Balance actually get adjusted
even if you have not selected this type. The figures in the Profit & Loss Account
will reflect the Closing Balance figures.
Note: For comparing closing balance figures in final statements, especially the Balance sheet items, viz.,
assets and liabilities, choose Closing Balances.
Alter/Delete a Budget
Alter Budget
Accounts Info. Budgets Select the Budget to Alter
If you select to alter the Corporate Budget of Groups of ledger accounts, say Yes
to Set / Alter Budgets of Groups. The default is No.
The same sub-screen for Group Budget pops up for alteration of the figures. Alter
necessary fields and accept.
Delete a Budget
From the Menu go to Alter select the Budget and press [ALT]+[D] to delete it.
Budget Variance
The Trial Balance and Group Summaries carry an additional Budget Variance Button
(Alt+B) which is active if Budgets are active and at least one budget exists. Pressing this
button will create an automatic display of Budgets, Actual with Percentage, and Variance
form budget with Percentage in three columns. This is a first-step offering of the facility
and is being fine-turned to enhance its range and diversity of options which you should
see shortly.
Cost/Profit Management
Maintain cost centers
Introduction
Tallys concept of Cost Centers allows an additional dimension to a transaction. By
providing cost centers, a transaction can be allocated to it which would then enable
extraction of all transactions for a cost centre. Tally gives you the cost centre break-up of
each transaction as well as details of transactions for each cost centre. When you also
allocate income to the units, they become Profit Centers. You can now obtain a Profit
and Loss account of each such Profit Centre. For your purposes, the terms of cost Centre
and Profit Centre are interchangeable.

.
Examples of cost centers:
1.
Departments of an organization, e.g., Finance, Manufacturing, Marketing,
etc.
2.
Even individuals like, Salesman A, Salesman B, etc.
You may allocate expenditure incurred on sales by the salesmen, as well as the sales
generated by them, directly Of their cost centers. The allocation is done online at the time
of transaction entry itself. By allocating your expense and sales transactions to the
salesmen you have set up a valuable information system to know the efficiency and
effectiveness of the salesmen.
Cost Categories (For advanced usage only)

Cost Categories have been introduced for organizations requiring allocation of resources
parallel sets of cost centers. Such organizations would usually be project oriented.
1.
Most organizations would not need cost categories at all. Proper use of Cost
Centers itself would give you the same benefits. Cost categories would
increase your data entry work as well as complexity. Hence, before opting
for it, please evaluate carefully whether you actually need cost categories.
Always attempt to first use cost centers alone.
Use of Cost Categories

If it were not for Cost Categories, there would be only one set of cost centers, e.g., only
one set of Primary Cost Centers with each Primary cost centre having its own
subsidiaries. By using Cost Categories you may allocate, in parallel, a transaction to more
than one set of cost centers. Its use becomes apparent with the following example.
Let us extend the above example itself. The Primary Cost Centers Marketing, Finance and
Category Executives. Similarly, you can create a new Cost Category Projects under
which cost centers airport construction, road construction and Building may be created.
The classification would look somewhat like the matrix below:
Cost Categories:
Department
Executives
Projects
Cost Centers:
Manufacturing
Salesman A
Airport Cont.
.
Marketing
Salesman B
Road const.
Finance
Salesman C
Building
Your actual screens would appear thus:
Creation of Cost Categories
Creation of Cost Centers
Other Features
Examples: Salary paid Rs. 12000/- (Salesman A- Rs. 4,000/-, Salesman B Rs.6000/-,
Salesman C Rs. 2000/-
Enable Cheque Printing

You can choose to write cheques directly from Tally. Cheques will be printed when
printing a payment voucher. However, first activate the capability in F11: Accounting
Features and set the dimensions. Tally accepts user defined cheque dimensions!
Gateway of Tally F11: Company Features Accounting Features
Enable cheque printing yes
Company Name on Cheque:

If you want Tally to print the company name on the cheque for signature purposes,
give the name e.g. Demo Company Limited. If you do not want Tally to print the
name, leave it blank. Many banks give cheques with your company name already
printed on it, in which case, you do not want Tally to print it.
Name of Banks:
Type the name of the bank. The name should also exist as a ledger account in Tally.
You now fill in the dimensions of the cheque.
Take the banks chequebook and measure the dimensions of a cheque carefully in
millimeters and fill the form. You may need to correct it after trying out a couple of

cheques so that the positioning is accurate. The placing of the cheque n the printer
also determines the printing. Trial could be made on photocopies of a cheque before
using an actual cheque leaf.
Allow Zero Valued Entries

To make a voucher with Zero amount, set yes, otherwise set no to restrict entry of zero
valued voucher.
Exiercise
1. Create the Budget fo indirect Expenses (group wise) worth Rs. 35,000 on closing
balance the name of expenses Budget.
2. Create the Cost Centres and Category (Allocate Revenue Items yes):
a) Cost Category
:
Departements
b) Cost Centers
:
(i)
Marketing
(ii)
Administration
3. June 5: Paid Advertisement Expenses Rs. 15,000 by cheque.
a) Rs. 6,000 for Administration Department
b) Rs. 9,000 for Marketing Department
4. Check your budget variations.
5. June 11: Sold goods to Vaibhav of Rs. 20,000 and Rs. 5,000 received at th time of
sale. Raj computers charge interest will be charges @ 12% p.a. If payment
received after 30 days from the date of sale.
6. July 12: Received Rs. 5,000 from vaibhav.
7. July 20: vaibhav paid all the reaining balance amount.
Hint:
1.
2.
Budget variance Rs. 22,190 (63.40%)

Match Trial Balance 7,12,877
Voucher Types & Class

Session -4
Voucher Types
Introduction
A voucher is thr primary online document for recording transactions.
Transaction recording and analysis are greatly facilitated by having
specific formats for different for different types of transactions. Tally
provides 18 different predefined voucher formats or what it calls
predefined types of vouchers. These are used for recording various
transactions.
The predefined voucher types can be displayed as follows:
Gateway
of
Tally
Display
List
of
Accounts
<Ctrl>+<V>[voucher Types]
How To Manage And Operate Voucher Types

Tally acknowledges the special requirements of some users for more
voucher types. These arise in cases like when you need the same
voucher but in different names or separate series of numbers.
Examples include Cash Payment Vouchers and Bank Payment
vouchers where the relevant predefined voucher is payment voucher. You may have two
or more sets of Sales vouchers for different kinds of sales transactions e.g. credit Sales,
Cash Sales, etc.
You would need to alter a voucher type to change default settings for different
information appearing in vouchers. Using [F12] can further configure a voucher.
Create a Voucher Type

Create a new voucher type
Gateway of Tally Accounts Info. Voucher Type Create
Note: A new voucher type must assume the function of a predefined voucher type
Name
Give the name of the new voucher type, e.g., Bank Payment Voucher.
Type of Voucher
The type of voucher should be any one of the predefined voucher types (already listed in
introduction). The new voucher type would inherit the properties of this predefined
voucher type. It would function exactly like the predefined voucher.
Voucher Type & Class

Abbreviation
An abbreviation is required particularly for unformatted reports, which do not use
compressing techniques. (Tally allows printing of both formatted and unformatted
reports). In the Example, give BPymt as the abbreviation. Though there is no restriction
on the length of the abbreviation, it should preferably be five characters or less.
Method of Voucher Numbering
None
This will disable numbering of such vouchers. If you select this method, no
further information is required.
Manual
This method will allow you to number voucher of this type yourself. It does not
check for sequence of the numbers and permits you to specify anything you wish
in the voucher number field. However, you may choose to prevent entry of
duplicate numbers. If you do, enable the next field Prevent Duplicates.
Note: Prevention of Duplicates is possible if you enable the option at the time of creation. You may enable
it later (by alteration) only if there are not transactions of this voucher type.
Automatic
This method is both flexible and exhaustive. Use it carefully to give you your
desired numbering system. Select this option to let Tally number the vouchers
automatically for you. You must give the following additional information:
Use Advance configuration
Press Y to define additional information about voucher type. It will show you a new
window where you can provide following information.
Starting number
:
Give the number for the first voucher. Usually it is
1. You can set it to any number you want.
Width of Numerical Part
:
You may leave it blank to let Tally automatically
adjust the width according to the number. You may
keep a fixed width, e.g.,3.
Pre fill with ZERO
:
when the width is specified, the digits before the
number is blank if NO and zeroes if yes. E.g.
0010
Restart Numbering Voucher :
Numbering may be restarted with the starting
number (as specified) at intervals selected by youMonthly, Yearly or Never.
Prefix Details
:
If you want the voucher numbers to be prefixed with
some fixed information, give the information here.
You may give your company Name/month name.
The numeric portion begins immediately after the prefix information. Therefore, be sure
to give a space or a slash / or some such character should you want a separation,
Suffix Details
you can also give fixed suffix information for the

voucher number. The same rules and effects as for
Prefix details apply.
Use EFFECTIVE dates for vouchers
Select Yes if you want to enter effective dates for vouchers. You would opt for this if you
have instances where a transaction under consideration for overdue/ageing analysis is
recorded currently but will take effect from another date. If effective date is entered, the
overdue/ageing will be considered from the effective date and not from voucher date.
Use common narration

Select Yes to give a common narration for the entire voucher, Tally vouchers can have
multiple entries. Hence, you may wish to give a common narration for all the entries of
the voucher or a separate narration for each entry or both. Select Yes even when you want
both. Select NO if you do not want a common narration.
Narration for each entry
Select Yes if you want to give a separate narration for each entry of a voucher. This
would be applicable for a multiple entry voucher where you want separate details for each
entry. Select No if you dont want separate narration for each entry.
Print after saving voucher
If you want print every voucher entering it, select Yes, else select No, This is suitable for
an online environment where you use the Tally printed Voucher as the format voucher.
Voucher Classes
Voucher class is predefined voucher type profile that helps to automate & expenditure
voucher entry and minimize errors. Voucher Class enables the administrator to set the
control on the operators.
Voucher class is pre-configured template with defined accounting entries (like
Accounting Group, Ledgers, Cost Centers etc.) and allocation/ computation rules, Some
of the uses of Voucher Classes are:
Automatically select a ledger account (or proposes a specified ledger for quick
selection) in voucher entry.
Automatically round off the figures as per rounding off rules.
Automatically compute Tax, Duty and other allocations.
Voucher classes are available for all major voucher types.
Voucher classes ensures fast and correct data entry and provides more security (In
many cases the data modification is prevented)
Voucher Classes for Payment, Receipt and Contra Vouchers

The primary intention of using classes for payment, receipt and contra vouchers is to
enable data input in single entry or list mode rather than in Tallys traditional double
entry mode. You can also use it have a separate form for each cash and bank account.

Exclude these Groups
Groups other than Bank or Cash Groups should not be selected. This is used to exclude
Cash or Bank Groups that are not to be used in this class to pay out the money. It our
example, we want to exclude Cash and Credit cards.
Ledger Name
Selecting the ledger account that will be used to pay out the money will eliminate the
need to select it during entry. In this case, it is Barclays Bank. In a receipt voucher, you
will select the ledger account into which monies will be received. You may even select
Not Applicable. The purpose of selecting Not applicable. Will be to permit single
Entry mode and at the same time retaining the option of selecting the account during
entry.
Note: Exclude or Include groups are irrelevant when you specify a ledger name for which the class is
created. They are useful when you select Not applicable
In case you do not required split payments, you could create only one class with nothing
in include/exclude Groups and without any ledger name. A Single class does not require
class selection and is a rapid way of using Single Entry mode with full functionality of all
ledgers available.
Accept the class table and the voucher type alteration. You may use [CTRL]+[A]
Combination.
Payment voucher Entry with class

Select voucher entry at the Gateway of Tally. Press F5: Payment. You have to select a
class or Not Applicable if no class is desired for this entry. If Cost Center Class has been
set, it can be selected too.
The entries will be made as follows:
The voucher class is Petty Cash. Note that you do not have to select the Cash/ Bank
account and the entries are not in the regular Dr/Cr format. Data entry in Tally was
already very rapid. It now faster than before!
Purchase/Sales Voucher classes

Purchase voucher Classes are templates where you can restrict accounts to be used in
entries as well as automate accounting entries for items and expenses.
Default Accounting Allocation

Each Stock Item in the invoice can be allocated to the financial (nominal) account
mentioned here. Hence, all the stock items that will be entered in this class will be entered
in this class will automatically affect this Nominal ledger account. Of course, the stock
item record remains as it is and can be viewed separately.
Ledger Name
Select the ledger to be credited for each item sold in the invoice. More than one
ledger can be affected for each item, e.g., for Tax-inclusive items, the ledgers to
be credited will be sales and Tax in a definite proportion. This is where percentage
comes in.
Percentage%
Useful in tax-inclusive items, you can specify the Sales ledger account as, say,
82.5% and in the next line the Tax account with the balance 17.5% normally, for
tax-exclusive prices, you will give 100% for the Sales account. The % symbol is
required to be mentioned.
Rounding Method
This may be used only where the sales account is NOT 100%. Calculated amounts
may be required to be rounded off upwards or downward or normal. Normal is
rounding to the number or decimal places specified for the currency based on the
less than 5 & greater than 5 rule. You can set your own rounding off rule e.g.
round off to the next whole number. In such a case, you will give Upwards.
Rounding Limit
For the previous example, you will set it to 1 to achieve the amount to the next
whole number. To round off upwards to the nearest 50P, you will set it to 0.50.
Override using Item default
This is a question to be answer Yes or No. Item default here refers to the Sales
Ledger account that you may have set for a stock item, e.g. For Computers Sale of
Finished Goods. If in the Class Table here, you mention Sales Local, and set No to
this question, then sales local will be amount affected and not sale of Finished
Goods. Setting it to Yes will affect Sale of Finished Goods. The advantage of this
is that you can use different classes to affect different sales accounts.
Additional Accounting Entries

Expenses and other charges like Import Duty, Freight, VAT, Sales Tax can be specified
here which will be calculated automatically on the Type of Calculation and Value basis.
Ledger name
This is self explanatory. You can give more than one ledger.
Type of Calculation
Select the type you want for calculations.
As Additional Excise
In the Indian sub-continent, a manufacturing Tax, or Excise is levied. For some
products, a supplementary levy on the Basis Excise Duty is charged, or
Additional Excise Duty. This is a surcharge calculation. For example, an
Additional Excise Duty of 10% on the Basic Duty. While the calculation method
is identical to As Surcharge(see below), the result is to provide a Total Excise
Payable calculation accurately during Invoice Printing.
As a Flat Rate
When you wish a specify standard mark-up/down on an invoice independent of
the qty/value of the invoice.
As Surcharge
When you wish to calculate the value based on the immediately preceding figure.
For example, a Sales Tax of 10% is applicable on an invoice, which would be
calculated on the value of goods sold. On this, a Surcharge of 5% -i.e. 5% of the
sales Tax value is applicable.
As Total Amount Rounding
Typically, the last line in an invoice. You would need to create an account, which
would carry the rounding difference. Now, as the other value of invoice are
calculated, this account would automatically get adjusted to keep the Total invoice
value to the desired rounding limited. Normally, you would also mark this invoice
as Remove if Zero? Yes. So that the account head is not retained in the invoice
printouts if no rounding was applicable.
As User Defined Value
This allows you to specify a value while creating the invoice itself. Normally, you
would use this when the basis of calculation is neither value nor qty dependent,
and therefore, needs to be entered every time you create an invoice.

Based on Quantity
In case of calculation based on the total qty supplied. For Example, you may
have Freight or Forwarding charges as 2.00/Kg, and if the total qty supplied in the
invoice is 200.000 kg, then the amount should become400.00.The value Basis
will also need to be provided as 2.00/Kg or 0.50/Pc as the case may be.
On Current Sub Total
In certain environment, taxes are applicable on the Total Goods Value as well as
supplementary charges such as Excise Duty, Packing Charges etc. Normally,
when the tax calculation method is specified as On Total Sales (see below), the
calculation are based on the Total Goods Value only. When you wish the
supplementary charges to be include, then you would set on Current Sub Total
as the type of calculation.
On Item Rate
Typically used for both VAT as well as Excise Duty style calculations. Here, you
would have specified the Rate of Tax applicable for each Stock Item, and you
would want only those items to be used for calculation purposes which equals this
Rate of Tax. The advantage is to be able to mix multiple Tax Rate products in the
same Invoice, and yet get the correct ones picked up for each Tax bracket.
On Total Sales
The most common basis of Tax calculation is on the total value of goods/services.
This method would calculate using the sum of Stock Items used in the invoice.
Value Basis
Give the amount which is to be used for the Type of Calculation. For percentage,
you must use the symbol%. Hence, Tax on Sales is 17.5% on Item Rate to use the
rate given in the stock item. The method of Total amount rounding will round the
total invoice and put the difference in the Ledger name mentioned here.
Hence, the account Rounding Off will contain the sum that essentially rounds off
the invoice to the desired level.
Rounding Method and Rounding Limit have been explained already.
Remove if Zero?
This is q question to be answered Yes or No, essentially to permit Tally to ignore
the account and not to make any entry in it if its value is zero. If Yes, ensure that
you are permitted to make zero value entries in F11: Features. No will record the
invoice in the ledger account with nil amount. Under normal circumstances, you
will probably wish to set this value to Yes. However, in cases such as Zero Rated
VAT, You may wish to retain the Ledger Account line, even though the
calculation Yields a nil amount.
Now you can enter purchases using this class,
It will show you as follows
Voucher Classes for Journals

Classes allow Journals to handle Forex Gain Loss Adjustments for companies having
multi-currency Accounts. You would create a Class in the normal way (Accounts
Info Voucher Types Alter Journal). And having selected the class during
Voucher Entry, will find only those Ledger Accounts appearing which have a Gain/Loss
to be adjusted as of the date of voucher and auto-calculation of these amounts.
Voucher Classes for Debit Notes and Credit Notes

Voucher classes for Credit Notes are similar to sales invoices except for one important
inclusion. You can set the class for interest entries to enable adjustment of interest
payable. If the Interest option is selected, the other sales invoice- like options will not be
available. A separate class may to be created for entries like Sales Returns. Since Sales
and Purchase invoice classes have already been dealt with, we shall not elaborate on this
behavior anymore.
Debit Note classes can be set for interest entries only. Classes for other entries are not
available as the invoice mode of entry is not possible for Debit Notes. Classes for interest
entries are covered under Interest Calculations.
Cost Centre Classes

The purpose of const centre classes is to facilitate predetermined allocation of ledger
accounts (like expenses and incomes) to cost centre during voucher entry. Allocation to
cost centre can be classes too.
How it work
Automation of cost centre allocation involves percentage allocation based on predefined
figures. Cost Centre Classes are defined where percentage which allocation is to be made
are given.
Cost centre classes affect all voucher types. In voucher entry, depending upon the cost
centre categories and cost centre before creating classes. Draw out on paper the classes
required and indicate which cost centre will be affected for each class.
Set up cost centre classes

At the Gateway of Tally, select F11: Company Features
Tab down to or simply click on No of the last option Set/Alter other Company Features?
Set it to Yes.
You bring up the Advanced Features one of which is Use Pre-defined Cost Centre
Allocations During Entry Cost Centre Classes.
Set this option to Yes.
You now bring up the Cost Centre Class creation screen. Type in the Class names and
select the Categories and the respective cost centre. Specify the percentage of allocation.
Although the names of the class and the cost centre are the same in the example, you need
not have them with same names.
Voucher Entry with Cost Classes

Each voucher now contains the cost class option at its head. Select Not Applicable in case
you want to allocate manually. Select a cost class to auto-allocate according to the
predefined percentages set in that class. Now enter the voucher as usual. The cost centre
allocation sub-Screen will not come up and the allocation will be done automatically in
the background.
After accepting the entry, check the cost center displays to verify whether the allocation
was done correctly.
Exiercise
1. a)
2.
3.
4.
5.
6.
C reate Voucher Class RST 8% fpr Sales Voucher Type.

Include sundry debtors and cash in hand.
Default Accounting Allocation: Sales 100%
Additional accounting Entries: Sales Tax 8% on Total Sales
b)
Create Voucher Class RST 10% for Sales Voucher Type
Include sundry debtors and Cas in hand.
Default accounting allocation: Sales 100%
Additional accounting Entries: Sales Tax 10% on Total Sales &
Surcharge 4% on Tax.
25 july sold one computer using voucher class RST 8% Sales in cash @29400/-.
31 july sold two computer using voucher class RST 10% Sales to Vasu Associates
@29200/-.
Create cost center class as follows
Jaipur50%
Kota25%
Ganganagar- 25%
5 August paid Salary 25,000/- using cost center class through HDFC Bank
10 August paid Rent 30,000/- using cost center class through HDFC Bank.
Hint:
1. Match Trial Balance =

2. Match Stock Summary =
8,02,245.60
3,60,350.00
Inventory Master
Session- 5
Introduction to Inventory
If you want how many quantities you had Purchased/sold and how
much you have in your stock. You can do this in Tally. In company
creation/ Alteration menu you have select at maintain field accounts
and Inventory option. All stock related options would be
highlighted through this. The different inventory information that
you would provide to tally by way of masters are:
Gateway of Tally Inventory Info.
Basic of Inventory
Stock Groups
Stock items can be grouped together under stock Groups to reflect
their classification based on some commonality. Grouping would
enable easy location and reporting of stock items in statements.
Hence, items of a particular brand can be grouped together so that
you can extract stock of all items of that brand. For example, create
Stock Groups like books. Your stock items could then be Text
book, Drawing Book, Exercise book etc.
Gateway of Tally Inventory Info. Stock Groups
Creation a stock Group

Gateway of Tally Inventory Info Stock
Groups Single Create
Name
Give the name of the stock group. Here we
wish to create a group books.
Under
Specify whether it is a primary group or a sub-group of another group. Select from
the pop-up list. Here we select Primary from the list.
Use ALT+C to create parent if you do not have the group you want in the list.
Can quantities of items be ADDED?
This really pertains to information on the stock items that you would create under
this stock group books in this case. The stock items created under the group
Inventory Master
should have similar units to be addable. You obviously would not want to add
Kgs with Pcs (where you have a group like Consumables and items like grease
and rag cloth which are measured in kg and meters respectively). We select Yes
here because we want to create items like Drawing Books & Exercise Book etc
which at this point we feel would be addable and the total meaningful. You may
later set it to No, if you find that the totals do not make sense. It is, possibly, easier
to set it to No initially and later set it to Yes on assessing the item units in the
group.
Display or Alter a Stock Group

Gateway of Tally Inventory Info Stock Groups Single/Multiple Display
Or
Gateway of Tally Inventory Info Stock Groups Single/Multiple Alter
Select the Stock Group whose particulars you wish to display. When you display or alter
a stock group the information entered while creating it is displayed.
Delete a Stock Group

You can delete a stock group only if it does not have any children under it. The children
could be stock group or stock item or both.
Gateway of Tally Inventory Info Stock Groups single Alter
Press [ALT]+[D] to delete the stock Group
Note: You cannot delete a stock group from multiple mode.
Units of Measure
You will need to create units of measure for stock items. These can be simple units such
as numbers, meters, Kilograms, Pieces, or compound units, e.g. box, where, say, one box
equals ten pieces.
Creation of unit of measure

Gateway of Tally Inventory Info Unit of Measure
Create
Type
Symbols are of two types: Simple and Compound.
Simple
Simple units are considered as stated by you and
Tally just checks for duplication and nothing else. If you wish to give unit symbol
that are single and not a combination of other units, select Simple. Tally defaults
to Simple and if you want to change to compound, use backspace from the
Symbol field and select compound from the popup list.
Symbol
Give the symbol o the unit, e.g., No., Mtrs. This symbol given by you is used in all
displays and printouts. We give the symbol no (for numbers).
Formal Name
Give the formal name of the symbol. This explains the symbol, which is also used during
consolidation of data of different companies where the symbols might be the same but are
assigned to different Units. The formal name will be used to match them. Here we type
Number as the formal name for the symbol no.
No. of decimal places
If the unit will be used in fractions, say for a kilogram you may have to use grams as well,
give the number of decimal places. For kilograms, you would give 3 decimal places to
accommodate up to 999 grams. Hence, a measure 1 kilogram 865 grams will be 1.865
kilograms. For units like numbers, you do not normally want a decimal place and you can
specify 0 in such cases. You can specify 0 to 4 decimal places.
Compound Units
A compound unit is a relation between two simple
units. Hence, before you create a compound unit,
ensure that the two simple units have been
previously created. In the example here, we use
dozens as another simple unit (created as we did
nos). Now we must give the relation between dozens
and numbers as one dozen equals twelve numbers.
Note: use the up arrow or backspace key to position the highlight in the Type field. Select Compound from
the types of units pop-up menu.
Displaying and Altering Units of Measure

Gateway of Tally Inventory Info Units of Measure Display/ Alter
Once created, units of measure can be displayed and altered. You can delete a unit of
measure in the alteration screen by pressing [Alt]+[D]. However, you cannot delete a unit
of measure that is part of a compound measure. The compound measure must be deleted
first.
Stock items
Like Ledgers, stock items are the primary inventory entity. You will
use stock items while recording their receipts and issues. This is
lowest level of information about your inventory. Each item that is
required to be accounted for, needs to be created. In fact, you will
create a stock ledger account for each item and Tally calls this
account Stock item.
Creating a Stock Item
Gateway of Tally Inventory Info Stock Item Single
Create
Name
Give the Name of Stock item. Here we wish to create an
item Exercise Book.
Alias
This is for alternative names of stock items.
Under
Specify the Group to which it belongs. Use [Alt]+[C] to
create a parent if you do not have the item you want in
the list.
Units
Give the unit of measurement of the item here. As usual, use [Alt]+[C] to create a
new unit.
Display or Alter a Stock Item
Gateway of Tally Inventory Info Stock Items Single/Multiple Display or Alter
Select the stock item whose particular you wish to display. When you display or alter a
stock item, the information entered while creating it is displayed.
Delete a stock Item
You can delete a stock item only if it has not been used form transaction entry.
Gateway of Tally Inventory Info Stock Items Single Alter
Press [Alt]+[D] to delete the Stock Item
Note: You cannot delete a stock item from multiple mode.
Inventory Master
Voucher Types
This is exactly similar to voucher types under accounting section. Please refer to that
section. You may wish to alter existing inventory voucher types or create new ones based
on those existing.
Tally is pre-programmed with a variety of inventory voucher, each designed
to perform a different job. The standard vouchers are:
1. Receipt note voucher (Alt+F9)
2. Rejections-in voucher (Ctrl+F6)
3. Delivery note voucher (Alt+F8)
4. Rejections-out voucher (Alt+F6)
5. Stock journal voucher (Alt+F7)
6. Physical stock Voucher (Alt+F10)
Inventory Maintenance
Inventory maintenance covers whole many of accounting materials (physical
and monitory count.) This generally comprises of:
1. Enquiry and quotation for offer for sales and purchases.
2. Sales & Purchases order
3. Delivery and receipt of materials
4. Return of materials
5. Sales and Purchases invoice
6. Debit and credit notes
7. Tracking of Sales and Purchases order
8. Inventory Control
9. MIS reports
Exiercise
1. Alter your company informaton with Accounts with Inventory.
2. Enter the following inventory details:
S.N
o
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Nameof item
Group
Units
17 Monitor
Cabinet
Computer
HDD
Key Board
Mother board
Mouse
Net. Cable
Processor
RAM
Speaker
Flat
H/W
Branded
H/W
Multimedia
H/W
Optical
H/W
H/W
H/W
Woofer
PC
PC
PC
PC
PC
PC
PC
Mtr.
PC
PC
Set
Categor
y
LG
ACER
IBM
A-Tech
Intex
A-Tech
Intex
Tikaro
Intel
A-Tech
Sony
Godowns
Lalkothi
Rajapark
Vaishali Nag.
Lalkothi
Rajapark
Vaishali Nag
Lalkothi
Vaishali Nag
Rajapark
Vaishali Nag
Op.Q
ty.
12PC
16PC
5PC
12PC
30PC
15PC
12PC
70Mtr
22PC
18PC
7 PC
Rate
Value
6,200
1,200
26,550
2,500
430
2,900
225
12
4,500
1,050
830
74,400
19,200
1,21,750
30,000
12,900
43,500
2,700
840
99,000
18,900
5,810
4,40,000
Advance Inventory Features [F11]

Session -6
Inventory Features (F2)
Gateway of Tally F11 Company Features Inventory Features (12)
General
Integrate Accounts with Inventory
Effect on Balance Sheet and Profit & Loss
account
The option in Inventory Features has a
significant effect on the Balance sheet and
Profit & Loss Account. If set To Yes, it
Brings the stock/inventory balance figures
from the inventory records and provides a
drill down to the Stock registers from the
Balance Sheet. If it is set to No, it ignores
the inventory books figures and picks up
manually entered closing stock balance. Stock records often contain compensation
errors caused by wrong allocation to items and the like. The feature enables
finalization of financial books without for reconciliation of stocks that may take
time.
Allow Zero Valued Entries

As we discussed in chapter -3 advance accounting features [F11].
Invoicing
Allow Invoicing
Enter purchases in invoice format
Invoicing or Sales invoicing is not very different from sales voucher entry. In fact,
you use the same voucher but select As Invoice option to turn it into a sales
invoice. Purchase invoices are recorded through normal Purchase Voucher entry
and it does not have the provision of being converted into an invoice format for
entry purposes. However, you can print the purchase voucher as a Purchase
Invoice or even a Purchase Order.
Note: Ensure that you have activated Invoice Entry capability in F11: Company features.

Use debit/credit note
As we discussed in chapter -3 advance accounting features [F11].
Allow discount column in invoices
This option is active only if allow invoicing is set to Yes. Set this option to
yes, if you want a separate column for discount in invoices. This discount
column will be displayed in sales / purchases invoice only.
Storage & Classification

Main multiple Godown
If you have more than one stock point/storage locations/ warehouses/godowns,
and you want to track stock movement in these locations, set it to Yes. Tally
permits any number of stock points. You will be able to know your stocks at each
location as well as assign stock movement to one or more locations during
voucher entry.
Create a Location
Gateway of Tally Inventory Info Locations Create
Name
In the Name field, give the name of the location.
Alias
Give an alias for the name, if required.
Under
Give the location under which this location is to be sub-grouped. Use
[alt]+[C] to create the parent location. Select primary if it is not a child of
any location.
Allow Storage of Materials
Tally permits you to create a location/godown where you may not store materials at all
but treat it as a virtual location. Virtual location is useful in case like Head Office which
may have many different stock point under it that store materials. Hence, Head office acts
like a primary group location.
Displaying and Altering Stock Locations
Once created, stock locations can be displayed and altered in single and multiple mode.
You can delete a stock location via Single location Alter by pressing [Alt]+[D]. However,
you cannot delete a stock location with sub-location. The lower levels must be deleted
first.
Maintain stock categories

Stock Categories
The concepts is similar to Cost Categories. You may wish to refer to the Chapter on Cost
Categories to grasp the similarity/differences. This option will come up in the menu only
if you have opted for stock categories in [F11] comp. Features. Stock Categories offers
parallel classification of items.
Note: the stock query option under statements of Inventory Display will reveal the strength of this feature.
Creation of stock categories

Gateway of tally Inventory Info Stock Categories Create
Name
Give the name of the stock category. Here we wish to create a category LG,
Samsung, Philips etc.
Under
Specify whether it is a primary category or a sub-category of another category.
Select from the pop-up list. Here we select primary from the list (there is no other,
at this moment).
Use Alt+C to create a parent if you do not have the category you want in the list.
Buttons
F4: Parent
To change the parent Under Category when you may have created sub-categories under
it. The change affects all the sub-categories created under the parent and they would
belong to the new parent.
F8: Skip Details

If the answer to the question Under is to remain the default, which is the same as Under
Category for all new names, than use this button. Your cursor wil not go to that column
which speeds up data entry. Use the following buttons to switch
to the respedctive masters for creation
Display or Alter a Stock Category

Gateway of Tally Inventory Info Stock Categories
Single/Multiple Display
Or
Gateway of Tally Inventory Info Stock Categories
Single/ Multiple Alter

Select the stock category whose particulars you wish to display. When you display or
alter a stock category, the information entered while creating it is displayed.
1. Display from this mode is for master information only. You will not obtain
any balances for a stock category here. Use the Display option from the
Gateway of Tally for display of balances and transactions.
2. In earlier days of computing, one would look at the master information for
balances. Tally believes that balances are a logical consequence of the
transactions; hence, they should be available with the transaction summaries.
You would find all summaries and details through the Display option in the
main Gateway of Tally.
Delete a Stock Category
You can delete a stock category only if it does not have any children under it. The
children could be stock category or stock item or both.
Gateway of Tally Inventory Info Stock Categories Single Alter
Pressing [ALT]+[D] to delete the stock category
Note: you cannot delete a stock category from multiple mode.
Maintain Batch Wise Detail

This option is for maintaining batch information pertaining to stock items. The batch does
not extinguish itself after it is disposed of; it remains on record and is quite like the ledger
in behavior. Hence, it is possible to view data like below:
Set Expiry Date for Batches

This is useful for businesses that deal in goods that have expiry dates like medicines,
foods and other perishables, while voucher entry, date of manufacture of the product
defaults to the date of the voucher is which can be changed but not to a date later than the
voucher date. Expiry date cannot be a date prior to the voucher date.
Note: Batches should be used where they are small in number and remain constant, Do not use the batch
option for tracking of lots through manufacturing processes. If that is done, you will soon have a large
number of batches which are not deleted. You will not be able to assign costs to particular lots as may be
the intention.
Use different actual & billed quantity

This option enables you to specify quantities, which are different from that
delivered, when invoicing, and
record the fact. It is possible that
you have delivered goods but
some of them are in dispute and
your customer wishes to be
invoiced for only the quantity that
he agrees to. He may consider the
rest later and would then like to
be invoice. On the other hand, the
rest is so bad that it is useless
even for you to take back. Hence,
you can record the fact when
raising the invoice without
altering the delivery note or
passing a rejection entry. Select this option if you have many such occasions. This
feature is use for schemes which offered by the company or business like
Buy one Get one free.
Additional Features
Additional Informations If you do not find a field that you are looking for, or if you want
to remove some or all the extra fields, check configuration and/or company features.
Usually, you will be able to configure the information to your requirements.
Gateway of Tally Inventory Info Stock Items single create
The additional information are:
Part No
: you can give part number for the item to identify them here. In
certain industries, e.g., the automobile industry, various parts are
better known by their part number.
Alias
: it is a another name of Part No.
Description
: Enter description of the stock item that would appear in your
invoices as well, if you want them to.
Category
: Select the category from which it belongs.
Remarks
: it is like additional information about the stock item to better
understand that particular
Alternate Units
: This is another unit, apart from the main unit, that you can use for
the stock tem. This is particularly useful when you need to deal in
different units at different times. For example, you buy sugar by
weight in Kgs but sell in packets. For alternate units, you are asked to
give a conversion factor so that a link is maintained between the two
Enter Standard
Rates?
: if you wish to specify standard purchase and sales rates for the
item, select Yes. Standard rates enable valuation of inventory at
standard purchase or standard sales price. Moreover, these prices
come up by default during transaction entry, (but they can be
overridden with adequate authority).
Use BOM
: Bills of Materials (BOM) should be used only for the items that
have sub-assemblies or are manufactured.
Costing Method : Here we can select the method for valuation of the inventory. Tally
permits different valuation methods for different items
To value the stock, you can select from the following methods:
Average Cost/Price
FIFO (first In
First Out)
Last Purchase Cost/
Sale Price
LIFOAnnual (Last
In First Out Annual)
LIFO Perpetual
(Last In First Out
Perpetual)
: Tally recalculates the value after each purchase or sale.

: Tally assumes the sale of the oldest goods first.
: The stick is valued at the latest price.
: Tally assumes the sale of the newest goods first taking into
account the current financial year.
: As above but the last purchase price continues from the

previous financial year.
: A pre-determined value you have entered.
Standard Cost/Price
Ignore Difference due
to Physical
Counting?(Y/N)
: You are allowed to record the physical stock as counted, by
way of a physical stock voucher. There is, usually, a
difference between physically counted stock and that
appearing in the records. If you wish to ignore the

difference and continue using the stock as per books, select
Yes. It is, however, advisable not to ignore the difference
and let Tally consider stocks as per physical count for
subsequent transactions.
Ignore Negative
Balance (Y/N)
Treat all sales as

New manufacture?
Treat all rejections

Inward as scrap?
: this question really takes permission to ignore the item in

stock reports, should it have a negative balance. Select as
required.
: if you wish to avoid the need to pass entries for
manufacture or goods in and have them automatically done
when goods are sold, select Yes, this way you also avoid
negative balances in the stock records. It is particularly
useful for smaller manufacturing companies that make
things but do not want the problem of receipting stocks.
Treat all Purchase as consumed? This is quite the converse
of the previous question. Issues are automatically raised for
all goods purchased, if you select this You do not wish to
keep track of issues for this item. This is particularly useful
for consumables. The book stock of this item will always be
nil.
: If you do not want-rejected goods coming in to be taken
back into stock, select Yes. Otherwise, rejected goods
received, though recorded separately through a Rejection
Note, will be taken back into stock.
Order Processing
Allow Purchase order Processing
This option is set yes to make purchase order and reorder level.
Allow sales order processing

This option is set yes to make sales order.
Reorder Level
Reorder level is that quantity in hand for a stock item, reaching which, you should
ordered your supplies. The importance of reorder level arises from the desire to have
sufficient stocks to service customer orders and at the same time not to have
unnecessarily high stocks. Therefore, the points to be considered in deciding reorder
levels are the lead time for suppliers to deliver stock, the delivery time specified by the
customer, and the stock in hand to satisfy orders in the meantime. In simple mode, Tally
accepts your specified quantities only. In advanced, Tally considers past consumption
patterns to suggest reorder levels. You can however, give your own levels. You may also
specify the minimum quantity that is to be place dfor each order in either simple or
advanced mode.
The purpose of specifying reorder levels is to obtain a report that indicates the stocks that
need to be ordered. Hence, we will specify and then obtain the report.
Specifying Reorder Levels

Gateway of Tally Inventory Info Reorder Levels
Select the Group of stock items for which to specify reorder levels
Note that for each time a reorder level and minimum order quantity can be Specified. If
you click on the simple reorder button, the consumption alternatives will not be available
and you will input the quantities.
For each items Reorder level and Minimum order Quantity the entry options are identical
and they are:
Level/Quantity
It requires input of quantity.
Or Consummation of Last
Here you are given the option to let Tally calculate the reorder level/order quantity based
on past total consumption for a chosen period. Past period suffered area: Days, Weeks,
Months and Years. Please note that it is not average consumption for the period but total
consumption. Give 0 if you do not want the previous consumption for an item.
Whichever is Higher/Lower
Select whether you want the higher of the two i.e., input level/quantity or calculated
Rounding Method
And specify whether the calculated quantity should be rounded and the method.
Obtain Reorder Status and Quantities to Order
Gateway of Tally Display Statements of Inventory Reorder Status
Select from List of Groups of Stock Items
In this case electronics in selected.
On selection:

This report gives you the reorder status for stock items under the stock group electronics.
To remove those items for which there is no order to be placed, click on the button
Reorder only.
In particular, you have the following information: Apart from knowing the quantity to be
ordered, you are able to move your cursor on the fields and drill down for more relevant
information.
Name of the Stock Item
Press Enter on this for suppliers of this item and the details of their previous supplies
Stock in hand
Drill down for Monthly inwards and Outwards Summary and further details.
Sales Orders Due
Hence, Free Stock Available for sale
Reorder Level
Drill down to the specification sheet for the item which you can even modiy!
Shortfall
As Calculated
Minimum Reorder Quantity
As determined from the specification. Drill down to the specification sheet.
Order to be Placed
Print this statement or sent it for action to place orders
Alter Reorder Levels and Minimum Quantities
There are two ways to alter/amend already specified Reorder levels and minimum order
quantities.
1. Gateway of Tally Inventory Info Reorder Levels
Its a single menu without separate Create and Alter options.
2. Drill down in the Reorder Status Report
As explained above for the fields Reorder Level and Minimum Order Quantity drill down
these fields to amend specifications.
Purchases/Sales Management
Track additional cost of purchase
If you enable this option, you are allowed to obtain a break-up of purchase costs, without
the need to separately debits ledger accounts for expenses. Typically, on Purchases, one is
interested in total costs and the break-up is of interest for analysis (except for expenses
like VAT or modvat, which are reclaimable). In such cases, you do not want to pass
accounting entries for expenses, which are of no consequence other than lengthening your
ledgers. For Example; you purchase from ABC & Co. 10 Pcs of Widgets @20/-=200/-.
Expenses incurred= Tax-20/-, packing charges 15.40/-, Total Purchase cost 235/-. When
Track additional costs is enabled, you will pass the entry in either of following two ways:
Price Levels
Customers can be assigned to specific price lists, called Price Levels in Tally, so that only
the relevant price is used during entry of orders and invoices, before you begin creating
price lists, you should decide whether you want various reasons; e.g., different types of
customers like wholesale customers, retail customers, export customers and so on. Each
customer type could have a different discount structure. Write down on a piece of paper
the price levels/bands that are required.
Activate Company Features[F11]

Ensure that the company has been set up for accounts with inventory.
The different features of a company can be selected or modified by F11 button.
This button is available in almost all screens of Tally as you might wish to modify
it as your requirements change. The Company Features Screen is repro9duced
below:
Accept through each screen of company Features by pressing the Enter key (do
not press escape) and return to Gateway of Tally.
Alter Price Level Names
Alter the name of a price level, go through the same procedure as enable and
create Price Levels
How to Create and Use Price Lists
Gateway of Tally Inventory Info Price List
If the price list option does not appear, confirm the activation procedure given in
the introduction above. From the list of Stock Groups:
Under Group
To select a stock group whose items will be given prices.
Price Level
To Select a Price Level. This is the level to which a specific group of ledgers
(customer accounts) will be assigned.
Applicable From
The date from which the price list is applicable.
The columns are:
SI No
A simple serial number to track the number of items in the price-list.

Name of Item
Name of the stock item for which the price may be given.
Quantities From & Less Than
These fields are repeated for an item and begin with a blank for 0 items and end
with a blank for any number of items. This is useful for quantity based pricing and
discounts. A staggered quantity price structure can be created if needed.
If no quantity based pricing is required, simply keep both the From and Less than
fields blank.
Rate & Discount (if Any)
For each quantity band give a specific price or keep the price the same for all
banks but give different discounts. Different methods can be given for different
items.
Previous Price List Rate and Discount
If a price list existed before the applicable from
date, it will be displayed.
Cost Price
The cost (based on the Cost method set for it) of
the item is displayed to help deciding prices.
Price Levels in Voucher Entry Invoicing
Price levels automate invoice pricing and help
avoid errors. The entry can be configured to
prevent using a different price than set:
First configure to prevent changes to price settings in a voucher
Gateway of TallyF12:Configure Invoice/Delivery Notes/Orders Entry
The Allow modification of ALL fields during entry should be set to No to prevent
changes to prices. Setting it to Yes will allow overriding set prices.
Now an example invoice entry:
Gateway of Tally Voucher Entry F8: Sales as Item Invoice
A new field price level appears and it is already selected for the party on the basis
of assignment made earliar. If a price level was not assigned in the ledger master
for the party, the cursor moves to that field to allow selection. The cursor skips the
field in case the assignment was already made and the entry configured (through
F12 to prevent all changes. On selecting the stock item and the quantity, the price
is filled in automatically and the cursor skips the price fields again.
Additional Inventory Voucher

Tracking Numbers
Tracking Number provides link between two transaction documents. It also links stock
items with corresponding accounting entries and tracks the link subsequently (that is why
it is termed as Tracking Number). Subsequently. Tracking number would be useful when
inventory & Accounting transactions are separate events (e.g. Challan first and then
Invoice or Invoice First and then Challan)
Rejection Inward/Outward Note

Basically Reg. In / Reg. out vouchers are made before the actual bill of purchase / sales is
received. If you want to return goods due to quality reasons or due to other reasons before
the purchase bill/sale bills is received, in this case reg. In/Reg/ out vouchers will be
prepared.
Set this option to yes, if you wish to record rejection of goods separately and not through
a common Debit Note or Credit Note.
Exercise
1. Alter your stock item with:
a) Stock Categories
b) Gosowns
S.No. Name of Item
1.
17 Monitor
2.
Cabinet
3.
Computer
4.
HDD
5.
Key-Board
6.
Motherboard
7.
Mouse
8.
Network cable
9.
Processor
10.
RAM
11.
Speaker
Categories
LG
ACER
IBM
A-Tech
Intex
A-Tech
Intex
Tikaro
Intel
A-Tech
Sony
Godowns
Lalkothi
Lalkothi
Rajapark
Vaishali Nagar
Lalkothi
Rajapark
Vailshali nagar
Lalkothi
Vaishali nagar
Rajapark
Vaishali nagar
2. Make a Price List for Dealer for all the items with appropriate qty & Trade
Discount.
Inventory Voucher
Session -7
Introduction of Inventory voucher
Pure inventory vouchers perform the same function in the inventory system as accounting
voucher in the accounting system, i.e., they too, are means of entering transaction. In this
case, the vouchers record the receipt and issue of goods/stock, the transfer of stock
between locations, and physical stock adjustments.
If you have chosen but to integrate accounts with inventory, inventory vouchers will not
have any impact on the balance sheet stock figures. They separately maintain the stock
balances. However, you can configure Tally so that the inventory entries would
automatically update the balance sheet stock figure. (By choosing to integrate Accounts
and Inventory in F11: Company Features Inventory Features (F2))
Type of Inventory Voucher

Tally is pre-programmed with a variety of inventory vouchers, each designed ot perform a
different job. the standard voucher are:
1. Purchases order (Alt+F4)
2. Receipt note voucher (Alt+F9)
3. Rejections-out voucher(Alt+F6)
4. Sales order(Alt+F5)
5. Delivery note voucher (Alt+F8)
6. Rejections-in voucher (Alt+F6)
7. Stock journal voucher (Alt+F7)
8. Physical stock voucher (Alt+F10)
Unless you have Tracking numbers activated in F11:Company Features Inventory
Features(F2), the Goods In Receipt Note and Goods Out Delivery Note vouchers will not
be activated. Tally will assume the goods are received along with Purchase vouchers and
goods are delivered along with sales Voucher/Invoices. When tracking numbers are
activated, you inform Tally that you may receive goods that are not accompanied by
Suppliers invoice the invoice will arrive separately. Also that you may not deliver goods
together with your invoice you may invoice latter.
Note: you are allowed, however, in a voucher, to select Not Applicable when the tracking number subscreen comes up. This wound update inventory right away without the need to pass a separate inventory
voucher. The vice-versa is also true. See advanced voucher entry for more details.
Purchase Order
Tally permits you to produce purchase orders from the system. Purchase orders may be
produced, printed and sent to suppliers. Goods received are linked with the Pos and
Invoices. Outstanding Purchase order should be monitored. In the chapter: voucher Entry,
we have shown how orders are linked with delivery notes and invoices. Hence, we will
only consider creation, alteration and deletion of purchase orders here. Display order
position of any item from the Stock Summary. The purchase order book will list out all
the purchase orders placed.
Activate Purchase Order processing in F11: Company Features Inventory Features
(F2).
How to create a Purchase order

Purchase order details will also depend on configuration setting. Hence, have a look at the
configuration and voucher types.
Gateway of Tally Inventory voucher Select Purchase order

Partys A/c Name
Give the suppliers name. type in the same manner as voucher entry and select
from list of ledger accounts. Use [alt]+[C] to create a new account.
Order No
The voucher number can be treated as your Purchase Order number. You may
configure the voucher type through inventory info Voucher Types to set
prefixes and suffixes for purchase Orders. This particular order No. field is an
additional field to record order number if different from the voucher number.
Name of the item
Give the name of the stock item for which the order is to be placed. Once the
name is given the item allocations sub-screen pops-up that needs to be filled in.
Additional Cost Details
Additional cost on the item may be incurred which can be mentioned here. Give
by way of percentage of the item cost or a flat amount. If not, select End of list.
Additional costs increase the value of the item and do not independently appear in
the nominal ledger account or expense.
Next Item
The cursor then comes to the item field once again and you can enter another item
to order. If no other item is required, press [enter] on the blank field to take the
cursor to the tax/expense field.
Narration
Optional, You may give some particulars about the order.
Alter a Purchase Order

You can alter a purchase order by displaying it from a variety of place
but is easier through the Purchase orders books or the day book.
Gateway of Tally Display Day book
Or
Gateway of Tally Display inventory books Purchase Orders
book
Delete a Purchase
Alter an order and use [Alt]+[D] to delete it.
Receipt Note voucher

For recording goods received. For example, the company receives new stock from a
supplier. If a purchase order exists for that supplier, selecting it will bring up the order
particular.
Goods received against purchase order.
Rejection-out Voucher
For recording of gods that are rejection and returned to a supplier. For example, the
company returns items that had previously been taken in to stock to the supplier
Rejection Out against the Receipt Note
View order Position

Stock summary is perhaps the best place to view the order position.
Gateway of Tally Stock Summary Detailed [F1]
Sales Order
Tally permits you to produce Sales orders
from the system. Sales orders received are
recorded in sales order Entry screen. The
details are available during Delivery Note and
invoicing, You may view the order position in
the stock Summary. The sales order Book lists
all sales order received.
Activate sales order Processing in F11:
Company Features.
How to Create Sales Orders

Sales order entry is exactly like purchase orders. Sales Order details will also depend on
configuration settings. Hence, have a look at the configuration and voucher types.
Gateway of Tally Inventory Vouchers Select Sales Order
Partys A/c Name
Give the customers name. Type in the same manner as voucher entry and select
from list of ledger accounts. Use
[Alt]+[C] to create a new account.
Order No
The voucher number can be treated as
your internal serialized order number.
The field order No. is advised to be used
for customers order number.
Name of the Item
Give the name of the stock item for which the order is to be placed. Once the
name is given the item allocations sub-screen pops-up that needs to be filled in.
Due on
The due date for delivery on the item. This will enable monitoring of outstanding
deliveries. The order can be split for delivery on different dates.
Location
In case multiple location feature is active, this field is required to be given, else it
does not appear.
Quantity, Rate and Amount
Give the quantity of the item required and its rate. The amount is calculated but is
modifiable to enable rounding off.
Next Item
The cursor then comes to the item field once again and you can enter another item
to order. If no other item is required, pres [enter] on the blank field to take the
tax/expense field.
Alter a sales Order

You can alter a Sales order by displaying it from a variety of place but
is easier through the sales orders Book or the Day book.
Gateway of tally Display Daybook
Or
Gateway of Tally Display inventory Books Sales order
Delete a Sales order
Alter an order use [Alt]+[D] to delete it.
Delivery Note Voucher

For recording goods delivered to a customer. For example, the company deliver goods
from stock to a customer. If a sales order exists for that customer, selecting the
appropriate sales order will bring up the relevant particular
Goods Delivered against the sales order
Rejections-in Voucher
For recording goods received back that was rejected by a customer. For example, the
company takes back into stock items rejected by a customer.
Rejected goods inward
View Order Position

Stock summary is perhaps the best place to view the order position.
Gateway of Tally Stock summary Detailed [F1]
Stock Journal Voucher

For recording stock transfers from one location to another. For example, the company
transfers items of stock from the warehouse to the shop.
How to create a Stock Journal

Gateway of Tally Inventory Voucher [ALT]+[F7] or click on stock journal
A stock journal is used to transfer materials or stock from one location to another
location. Stocks could even simply be shown as consumed. Or even only produce without
both consumption and production. Hence, it is not like other journal where debits and
credits must match.
The stock journal screen has three parts the top part accepts general information, the left
hand side is the source location consumption Part and the right hand side is the
Destination location or the production Part. While you must the common information
required in the top part, you may elect to give information for only the left or the right
path both.
Common information
Reference, date and voucher number
If activated for this voucher, reference field will come up. Give a reference
number, if required. Voucher number depends upon the settings in Voucher Type.
Source
Here give the name of the item and the location from which it moves or where it
is consumed as well as the rate and amount. If the rate is specified in the stock
item master, it will be brought up when you indicate the item name.
Note: the effect of entry in this part is of reducing stock of the items specified.
Destination
Here give the name of the item and the location into which the named item moves.
It is not necessary that the item names should match the names in the source part.
This is because of a totally new item could be produced Out of materials
consumed. You can specify the rate of the item and amo9unt. If the rate is
specified in the stock item master, it will be brought up when you indicate the
item name.
Note: the effect of entry in the destination part is of increasing stock of the items specified in this part.
View stock transfer Position

Gateway of Tally display inventory books stock transfer
Bills of Materials
A bill of materials contains a list of items that make up another item. In other words, it is
a list of constituent items.
Enable bill of materials facility

This is relevant for manufacturing organizations and can be set up through configuration.
Gateway of Tally F12: Configure Accts/Inventory Info
A Bill of material should be available while manufacturing an item. Hence, first enable
manufacturing entries. This is done through a stock journal. It is wise to create a new
voucher type, say, Mfg Journal which is based on Stock journal.
Stock Journal as Manufacturing Journal

Stock journal vouchers have a question Use as a Manufacturing Journal.
Gateway of Tally Inventory Info Voucher Type Alter Stock Journal
How to create a new Manufacturing Journal
Gateway of Tally Inventory Info Voucher Type Create
Name
Give a new name to the voucher type, e.g., Mfg. Journal. It could be any other name.
Type of Voucher
This must be Stock Journal. Pick it up from the pop-up list.
Abbr.
The abbreviation to the voucher type name.
Type in a suitable abbreviation, e.g. Mfg. or
mfg.jrnl.
Method of Voucher numbering etc.
Follow the normal voucher type creation.
Refer the voucher type section of the manual
for more details.
Use as a Manufacturing Journal
Select yes.
The other arias of voucher type screen have been discussed under voucher type
section. Please refer to that section for any assistance.
How to create a Bill of Material

You can create a bill of material (BOM) for any stock item. Typically, you would like to
create a BoM only for those items that are being assembled in-house. For trading items,
you do not need a BoM. Therefore, we need to specify a BoM at the time of creating a
stock item (or altering its master)
Let us create a new stock item and specify its BOM.
Gateway of Tally Inventory Info Stock Items Create
Unit of manufacture
Give the appropriate (usually the minimum) number of the finished product item that will
be made. While manufacturing (and recording through a stock/manufacturing journal),
you will make the item in multiples of this unit of manufacture.
Note: However, that in certain circumstances, it is better to give a larger unit of manufacture, e.g., per
1000 Pcs of Nails, as per nail consumption of raw Material will be too insignigican.
Item, Location (godown) and Quantity

Give the component name and quantity and, if multiple locations (Godown) have been set
up, the most likely location for the item.
The stock journal/manufacturing journal entry screen
Gateway of Tally Voucher Entry Click on Stk. Jrnl
If you had created a new voucher type Mfg Journal, a pop-up menu will show both the
default Stock journal and Mfg. Journal.
Select Mfg. Journal
Input fields
Name of Product
For the stock item to be manufactured.
Location
Give the location in which it is to be manufactured. This location will show the stock.
Qty
Give the quantity of the item to be manufactured.

Component (Consumption)
The component list for the product to be manufactured and the proportionate quantity
of each component (based on the quantity specified for the product) is produced. The
default location as specified in the BoM is also give for each component. However,
the entire component list can be altered, components added or removed and locations
amended.
Note: any change may during this entry will not affect the original bill of Material for this product.
If want to make permanent change to the bill of material, change the stock item master information
(Thru Gateway of Tally inventory Info)
Cost of components
The base cost of the components are automatically added and displayed.
Additional cost components
You may specify additional Cost for producing the item. These would, typically
wages, power, freight etc. Remember that you must have ledger accounts opened for
the additional costs. Moreover, additional costs entered for the ledgers, dont reflect in
the relevant ledger with amount but only at to the cost of the item. You can specify
the additional cost by way of a percentage of the cost of components, in which give
the number, e.g., 2 for 2% of the cost of components. You may, alternatively skip the
percentage Field and input and amount directly.
Total Additional Cost
This displays the total additional cost for the item.
Effective Cost
This is the some total of the cost of components and additional costs.
Effective Rate
Effective cost per unit of item/Product produced.
If you want to alter the related manufacturing/ Stock Journal, you must alter it
separately, in the normal manner. It will be available through
Display-inventory BooksStock Item or through StatisticsMfg or Stock
Journal.
Physical Stock Voucher

For recording actual stock as physically verified or counted. For example, stock found
on conducting a stock-check. It is not usual that the company finds a discrepancy
between the actual stock and the computer stock figure. If you have configured your
inventory vouchers to ignore
physical stock differences,these
physical stock vouchers will really
be for recording purposes only.
However, if you have configured the vouchers not to ignore physical stock difference,
then all transactions subsequent to the physical stock voucher will use the balance as
mentioned in that voucher.
Exercise
1. Aug. 10 : Place an order (RC/Po/01) to Shyam for 30 key-bpards & 5 computers.
2. Aug. 17 : Item received (RC/GRN/01 use as Tracking No. Also), from Shyam :
(i)
25 key-board : Rs. 400/-(each)
(ii)
5 Computers : Rs. 27,000/- (each)
3. Aug. 20 : 5 keyboard return to Shyam (Against Tracking No.)
4. Aug. 28 : Bill received form Shyam (Against Tracking No.)
5. Sept 9 : Payment made to Shyam Rs. 20,000/- by Cheque
6. Sept. 22 : Sales order (RC/SO/Nitin/011) received from Nitin for :
1. 2pcs. of Computer s
2. 3pcs. of HDD
3. 7pcs. of mouse
4. 7pcs. of keyboard
5. 2sets of speakers
7. Oct. 10 : Goods Delivered (RC/DN/01) to Nitin with 5% sales tax @2% surcharge
& Invoice raised on same day. Computer = 28,000 (each), HDD = 2,800, mouse =
500, keyboard = 850, speakers = 1,200
8. Oct. 17: Return 5 keyboard from Nitin against bill.
9. Oct. 22: Payment received Rs. 30,000/- by cheque & Rs. 20,000/- Cash.
10. Nov.12: Payment made to Shyam Rs. 50,000/- by cheqe & Rs. 25,000 cash by
nitin
11. Nov. 20: Payment received from Nitin Rs. 25,000/- in full settlement by cheque.
12. Dec.3: Payment made to shyam Rs. 50,000 in full settlement.
Hint:
1. Match Trial Balance =

2. Match stock Summary =
9,40,917.60
4,37,815.00
Advance Configuration [F12]

Session -8
Operation Configuration
Before starting work on the company, it is advisable to configure it
by pressing F12button at the end of the button bar, which will bring
up the following screen:
Gateway of Tally F12: configure
General
This has already been configured by you under country Specific
configuration before
Creating the company. It caters to country specific requirement.
The option available under F12: Configure General is, Country
Detail, Style of Names, Style of Dates, Configuration of Numbers
and Other Options. The screen appears as:
The Configuration settings of Country Details, Style of Names, Style of Dates and
Configuration of Numbers are self-explanatory. Make the necessary selection and accept
them.
The configuration options given under Other Options are explained as follows.
Show Monthly reports with Graphs

This option is set to YES by default. Here the reports are configured to display the
Graphs in accordance with the numeric information displayed. The Graphs are not
displayed if this option is set to no
Use Separate menu for final A/c Stmts
By default, this option is set to YES. Setting this to NO Tally displays the final statement
of Balance sheet and P & L Account Directly on the Gateway of Tally menu. However,
setting this option to YES- the final statement of balance Sheet and profit & Loss
Account can be accessed from Gateway of Tally menu- Final Account.
Print State and PIN Code with address
By default, this option is set to NO Setting this option toYes, will allow you to print the
reports with state and PIN Code Detail entered in the company creation Screen.
Note: if you already have a company created with state and PIN Code in the address Field, then you need
to set this option NO.
Ignore Errors and Continue During the Data import

By default, this option is to no. setting this option to Yes, will continue to import even if
an error is reported.
Numeric Symbols
This enables you to set the number styles. Default are also given. You may change them
by overwriting. For Example, change Negative Sign(-) To only ().
Accts/Inv info Configuration

This gives control over what details should appear in the
master over and above those provided as default. This is
available in the accounts and Inventory master screens
through the F12 button and can be modified accounting to
the needs at any time.
Voucher entry configuration

Configure different Features of you voucher entry Screen. The screen will filled up with
varying detail as specified here.
Other Features of convenience, e.g., Use payment/Receipt Voucher as Contra Voucher

Can be activated here to effect transactions for funds transfer. By Design, Tally Allows
such transactions only through contra Voucher.
Like wise, You are not permitted to use journal voucher to be used for cash or Bank
Transactions. However, Recognizing Exceptional needs, You can over ride that
restriction by activating the facility.

These are defaults and Should be changed if require. Please note that these are questions
ask you and You need yes to activate the facility and no to deactivate it.
Invoice/Orders Entry Configuration

Configuring the Invoice
Gateway of Tally F12: Configure
Invoice
Entry/Delivery Note
Set the options as required.

Please Note the last 2 option
1. Complete
Accounting allocations in
order/Delivery
Notes?
Accounting
allocation are not normally made during
order recording/ Delivery Notes. Hence, Its
Set to NO. However, Its permitted and,
Should want it, Change it to Yes
2. Allow modification of all fields during
entry? Default order/Delivery Note Entries appearing in the invoice can be
changed during invoice entry. To permit modification of all fields set it Yes else
NO
Connectivity
Tally has extensive internet connectivity. Email, Web-publishing and Data in interchange
over the internet are all easily achieved from within Tally.
You should have an Internet Connection accessible from your computer. This
could be through a direct dial-up modem or through the network.
For E-mail an E-mail Account.
For web publishing- you should know the sites URL (address) and have authority
to files on the sits.
E-mail
Send invoices to your customers by E-mail. Or you purchase order. In Fact, E-mail any
tally report or document as easily as you print! Even Remainder letter and statement of
accounts need not be printed and posted. Simply E-mail them. E-mail is the single largest
use of the internet and is set to penetrate Even the very small towns. You are uniquely
Positioned to take advantage of this medium. Its not only postage cost that you save, you
save on so much of your valuable time.
E-mail a Reminder Letter
Select a customers outstanding statement from statements of accounts.
Click the E-mail button.
These are various option that are automatically field in if the information had been
Supplied in the master records. Check if the details are all right. If they are, select Yes,
Yes if not Select no to change the options. The Cursor first goes to the to E-mail Address
Field as it seeks to save you time in skipping standard information. However, if you wish
to change them, e.g. the format, use backspace
The option are:
E-mail server
(Mandatory field)
Give the Name of your E-mail SMTP server, e.g., mail bt internet.Com. it should be a
valid SMTP Sever that will accept sending your mail. If in doubt, refer to you internet
service provider or ask your Network Administrator. you need to give this only the first
time You use E-mail Services of Tally. Next time on wards, Tally will remembers.
From
Your company name is Picked up from company information Master records.
From Mail address
Your own E-mail Address. It is picks up the address given the company Information
Master Data. If it does Exist there, You will be required to fill it in.
Format
Four Formats are available for Selection:
ASCII (Comma delimited)
HTML (web Publishing)
SDF (Fixed Width)
XML (Data Interchange)
Select the one required by your recipient.
To E-mail Address
(Mandatory field)
This is for the recipients e-mail address. A valid e-mail address is required.
CC (if any)
For coping the mail to another recipient.
Subject
This is pre-field for you. Change it to any other meaningful subject.
Additional Text
The text in this will appear as the first line in the massage body of the receptions mail
program. The other options are the same as in print option and are self Explanatory
Internet Publishing
Web sites most businesses will have on in the near future. Tally helps make, commercial
use of your web space with the ability publish all reports and document on your web site.
You can use this features to inform customer the new Price range the stock available for
sales. Tally has ensured that this transmission of data is secure by using world standard
encryption of data.
Upload
Any report or statement or data can be published on the internet. Publishing is
carried out by uploading the report to an Internet server that has been configured to accept
files in specific protocols. A site is a basically a specific directory space allotted to you to
you on that sever. Protocols are sets of rules and specifications on how data and files are
transferred over a network and cover all aspects of communication between computers
including content, formatting and error control.
Say you want to publish your price List on Your websute.
1. Select the Price List from Inventory Information.
2. Click the Upload button.
The first time you upload, you have supply Tally with some information Therefore select
No to the question Upload?
Upload to FTP Site
This is a site that accepts files transfers in FTP. A FTP site is a directory space in a server
that accepts FTP connections called the FTP server.

FTP or File Transfer Protocol is the most common choice to transfer data or files of any
type to an internet site. You will use this unless you know that your site accepts HTTP or
HTTPS uploads.
URL
Short for Universal Resource Locator that tells Tally the server address where you want
your report published. If you are using FTP you will need to know the FTP server Name
and directory path. The FTP sever name is the domain name of the Web server to which
you are publishing (for example, ftp.server.com) the directory path is the folder on the
sever where your web is stored (for example, /public_html). For a web page, an URL will
typically be in the form www.myweb.com.]
Secure server
If you select web page to, this question seeks to know whether you want to use a secure
connection. Select Yes, If you think your data is sensitive and provided your server is
configured for it. A secure site is one that has thes with know it is a secure site when
you see in your browser URLs like https://mybank.com/myaccount/States.htm.
User Name and Password
Your internet server wants to know who you are before permitting Tally to put in data and
files on the site. If you are unsure about your user name, Password, or FTP location,
contact your Internet service provider.
File Name
A file name is proposed if you have select FTP Site to Upload to. Accept it as it is or
modify only if necessary.
Format
The Same four format options are available. Select the most appropriate to your needs.
An explanation on each format has already been given under the E-mail section.
Web Browser
You have a button to access the World Wide Web from Tally. Click on the button Web
Browser to begin your session. When you want to end it, press End Browser. Of course,
you should have a valid internet access account set up on your computer and a browser
that is already installed.
Licensing Menu
To view the licensing menu, follow this path: Gateway of Tally F12: Configure
Licensing
Single-User
The screen given below displays the options available in License menu
Function/Features
This option allows you to view the Function/Features enabled in tally.
Menu Path: Gateway of Tally F12: Configure Licensing

Functions and Features
Products
This option displays the information of the TCP (Tally Compliant
Product), which is available for that particulars instance of Tally.
Online
The term Online indicates that your computer is connected to the Internet.
Offline
The term offline indicates that your computer is not connected to the Internet.
Quit
This option enables you to quit the licensing menu.
Multi-user
In multi-user system. The license menu of the License server displays all the options that
are available for single-user system.
Reports
Session -9
Features of Reports
Tally prepares the books of account and financial statements based on the vouchers you
have entered to date. You can then very the appearance of reports according to your
needs, for example, to make comparisons between different companies, periods of the
financial year, groups and ledgers. In each case, when you display a report, you can stepdown to the next level of detail by highlighting the item and pressing Enter, and you can
keep going until you reach an individual voucher. Similarly, you can step back to higher
levers by pressing [Esc]. The special features available for the currently displayed report
are indicated on the button bar, and can be selected with a single click of the mouse.
Accessing reports
The Gateway of Tally menus provide access to all the financial reports, as in the diagram
opposite. For example, if you want to view the sales Register then, in the Gateway of tally
menu select Display, account books and Sales register in turn, and Tally will display the
report for the currently selected period.
Modifying Reports
Once you have selected a report and its screen appears, you can modify the display to suit
your requirements using the appropriate buttons on the button bar. You will get to know
the functions of the various buttons as you become more familiar with Tally but some
button bar. You will get to know the functions of the various buttons as you become more
familiar with Tally but some buttons perform similar functions in all reports, providing
they are appropriate to the screen you are viewing.
If you select the buttons using the keyboard, the conventions are:
F1: Detailed/Condensed
Adds a further level of detail to the report, or condenses the report to a higher
level of detail.
F2: Period
Enables you to change the period of the report by specifying new from/to dates.
F3: Company
If you have more than one company selected, this button enables you to change
companies to display the new company data in the current screen format.
F4: to F10:
The functions performed by these buttons vary from report to report.
F11: Company Features
The button is not related to displaying reports but to selecting options that affect
voucher entry. The screen it displays must not be changed during training.
F12: Configure
This button is very relevant to displaying reports and enables you to define the
report-specific options you wish to use. For example, depending on the report you
are in, you can specify whether it should be in horizontal or vertical format, show
percentage, show percentages, show gross profit, show opening and/or closing
balance, change the periodicity, change the sorting method, and so on.
F12: Range
This button enables you to filter the information you see displayed based on
monetary value. For example, you can specify you only want closing balances
greater than 5,000.
F12: Value
This button enables you to filter which vouchers you wish to be used in the
calculations. For Example, you can specify you only want vouchers having a
narration containing the cash transactions.
New column
This button enables you to add another column to the report to display comparable
information for another company, or for a different period for the same company,
all on the same screen.
Alter Column
This button enables you to alter the details of a new column you have previously
created, for example, the date range. You select the column to alter by positioning
the cursor in it prior to selecting the button.
Del Column
You use this button to delete columns you no longer wish to see in the report.
Auto Column
You use this button to add multiple columns to a report, for example, columns for
each month, or to accommodate several companies. You can also have a total
column for the total of each item across all columns.
Balance Sheet
The Balance sheet gives the state of
financial affairs of a company on a given
date. It lists out the Assets and Liabilities
based on the Primary Groups of Tally. The
Balance sheet in Tally is updated instantly
with every transaction voucher that is
entered and saved. No special processing
is required to produce a Balance Sheet. To
view the Balance Sheet:
Gateway of Tally Balance Sheet
Horizontal From of Balance Sheet

The above example is of the horizontal form. It could be set up to appear in the vertical
form. You can extract different information by using the various options in the Button
Bar.
1. Select Detailed to explode the summarized information
2. Change the date of the Balance Sheet using F2: period.
3. Bring up new columns and
4. Select a Balance sheet for a different date to compare alongside the present
date or
5. Select a column to give the balance sheet in a different currency or
6. Select a column with Budget figures and analyze variances or
7. Select a column and see the effect of different Stock Valuations on the
profit/Loss
Balance sheet Configuration

Show vertical Balance Sheet
No will display Horizontal form. Yes will
display vertical form. In the British/Europe
configuration the vertical Balance Sheet will
have the titles Liabilities and Assets whereas the
Indian/Asian Configuration will have sources of
Funds as titles.
Profit or loss, both as Liability
Applicable only in the Horizontal form. If no, then Loss moves the Profit & Loss
account to the Asset side of the Balance Sheet.
Show Percentages
Each line will be expressed as a percentage of the total.
Show Working Capital figures
To show current Assets-Current Liabilities.
Method of showing the Balance Sheet

The
options
are:
Liabilities/
Assets
and
Assets/Liabilities. This is simply the order in which the
Balance sheet is shown:
For Horizontal Balance Sheet it is in the format: Left
Hand side/right hand side
For vertical Balance sheet it is in the format:
Top/Bottom.
Vertical Form of Balance Sheet
Select the Format using F12: Configure. This Balance sheet is in the UK/Europe
Style where Assets are given first. The default order Is, However, Liabilities/
Assets. In India/ Asia Style, the Vertical Balance Sheet will be:
Columnar Balance Sheets
Select a Balance sheet for a different date to compare alongside the present date:
Select New Columnar keys Alt+C and change only the period.
Profit & Loss Account

The profit & Loss account shows the operational results for a given period. It lists out the
incomes and expenditure based on the Primary Groups of Tally. The Profit & Loss
account in Tally is updated instantly with every transaction voucher that is entered and
saved. No special processing is required to produce a profit & loss account. The Profit &
Loss account is displayed according to the configuration set up for it in F12: Configure.
To view the profit & loss account:
Gateway of Tally profit & Loss Account
Horizontal Form of Profit & Loss

Account
The above example is of the horizontal
form. It could be set up to appear in the
vertical form. You can extract different
information by using the various options
in the Button Bar.
1. Select Detailed to explode the
summarized information.
2. Change the date of the P&L
Account using F2: Period.
3. Bring up new columns and:
4. Select a Profit & Loss Account for a different period to compare alongside the
present period or
5. Select a column to give the Profit & Loss Account in a different currency or
6. Select a column with budget figures and analyze variances or
7. Select a column and see the effect of different stock valuations on the
Profit/Loss.
Configure the Profit & Loss Account
Show Vertical Profit & Loss Account
Select the format using F12: Configure. The
vertical form always shows the Trading
account and the Income statement separately.
Show Percentages
Each line will be expressed as a percentage of sales Account, i.e., sales accounts
will be 100% and the rest of the lines will be a percentage of sales accounts.
Show with Gross profit
Applicable to Horizontal from only. The Profit statement is split to show trading
profit considering only the Cost of sales and direct expenses. From the gross
profit, indirect expenses are deducted to show net profit. If no, the Profit & Loss
Statement is not split to show gross and net profit separately. In Vertical from, the
trading account shows the gross profit and the income Statement, the Net Profit.
Columnar Profit & Loss Account: Some Examples

Select a Profit & Loss Account for a different period to compare alongside the
present period. Select New Column or keys ALT+C and change only the period
Stock Summary
Stock summary is a statement of stock in hand on a
particular date. The statement is updated with every
transaction so that it provides current stock position at
any time. The statement can be drilled down as with all
Tally reports, and configured to view different details.
Indeed, Its possible to see the total flow of stock on a
single report. Experiment with the different buttons for
this purpose. Tally treats stock summary as one of the primary statements and makes it
accessible directly from the gateway of tally. To view the Stock Summary:
Gateway of Tally Stock Summary
The default display is that of stock group balances. Select Detailed to show another level
of detail. This could be sub-groups or directly stock items in cases where there are no
sub-groups. The stock groups show total quantities. This is because the unit of measure is
the same for all the stock items that have been set up to have quantities of items added.
The stock group services, does not have any balance. This is because of the original setup of the Services items, where stock is valued at Zero Cost and all sales are treated as
Manufactured. Note that there is a grand total too because of a single unit of measure ,
then there would not be a grand total.
Stock Flow (reconciliation)

The stock summary statement can be configured to display the flow
of goods.
Select F12: Configure while in the Stock Summary screen
Set the configuration as given above.
This statement shows the flow of stock: Opening Stock, Goods
Inwards, Goods Outward and Closing Stock.
Stock Valuation Methods
Stock Summary with different stock valuations serves to show the effect of different
methods on the value of stock. Most popular methods are available. Each stock item
could be set up to have a different stock valuation method as default. However, there are
occasions when another method of valuation is needed, for example to assess the
replacement value or the saleable value of stock. Tally shows the stocks in any or all the
valuation methods dynamically and simultaneously without going through complicated
procedures.
Last Purchase Cost method can be used to assess the replacement value whereas Last Sale
Price for realizable (saleable) value.
While in the Stock Summary, select new column Select defaults for all except stock
Valuation Method
Stock Group Summary

This report is available only if the option in company features: Integrate Accounts And
Inventory is set to No.
The statement shows the Opening and Closing Stock figures that have been input in the
ledger account master rather than picked up from the Stock Summary. Hence, the stock
summary figures and the stock group summary will show different figures.
The ledger account belongs to the stock-In-hand Group.
Drill down the stock Group Summary to reach the stock Ledger account where the
closing lance for a given date can be input. Different closing Stock figures can be put in
for different dates that will remain effective till the next figure. The relevant figure for a
date is picked up into the Balance Sheet and Profit & Loss Account.
To get to the stock Group Summary,
Gateway of Tally Profit & Loss Account Opening Stock(or Closing Stock)
Ratio Analysis
Gateway of Tally Ratio Analysis
The Ratio Analysis statement is a single sheet Performance report for a selected period. It
gives important values and key performance indicators for the company. Its one report
that top management need to look at to know the state of the companys financial health
and where it is going in the short term.
The Ratio Analysis Screen is divided into two parts: Principal Groups and Principal
Ratio
The Principal Groups are the absolute key figures that give perspective to the ratios.
Principal Ratios relate two pieces of financial data to get a comparison that is more
meaningful when compared with ratio of other companies.
Principal Groups and Key Figures

Working Capital
Tally follows the Accountants definition and is the Net working Capital
calculated as Current Assets less Current Liabilities. Financial Analysts often
mean total Current Assets as Working Capital. This is a measure of the extent the
firm is protected from liquidity problems.
Cash in hand and Bank Balances
There are indicated in the Ratio analysis screen to give the liquidity perspective.
Sundry Debtors
(due till today)
These are two figures, total debtors and debtors that are due as on the date of the
Statement.
Sundry Creditor
(Due till today)
These are figures, for total Creditor and those that are due as on the date of the
Statement.
Sales and Purchase Account
These show the trading activity for the period
Stock in hand
This is the stock in hand as on the report. Together with Cash and Bank Balances
and Debtors, Stocks complete the Current Assets aspect of Working Capital.
Net Profit
This is derived from the profit & Loss account and is the profit after all direct and
indirect expenses.
Principal Ratios
These should be compared to industry averages, as well as for other periods to assess
current periods performance.
Working Capital Turnover
Sales/Working Capital
This is an activity or efficiency ratio that shows the number of times the working
capital has been rolled over during the period of the report. It depicts how
effectively the firm is using its working capital.
Inventory Turnover
Sales/Closing Stock
This is an activity or efficiency ratio that shows the number of times stocks has
been rolled over during the period of the report. It depicts how effectively the firm
is using its inventories.
Current Ratio
Current Assets: Current Liabilities
This is a liquidity or solvency ratio and is the most oft-used ratio for assessing the
capability of a firm to meet its short-term obligations. It specifically shows a
firms ability to cover its current assets with current liabilities.
Quick Ratio
Current Assets-Stock in Hand : Current Liabilities
This liquidity or solvency ratio is also called acid-Test Ratio that concentrates on
more liquid of the current assets or measure a firms ability to meet its current
obligations. It is thought that stocks and inventories are the least liquid of all
current assets and hence a firm might become insolvent if its current assets
comprise a high proportion of inventories.
Debt-Equity Ratio
Loans (Liability: Capital+ Net Profit)
This is a gearing ratio that shows the extent to which long-term debts is used to
finance the firm. It shows the proportion of borrowed funds to owners Equity.
The lower the ratio, the higher the amount of funds invested by the owners. If the
ratio is high, it indicates that borrowed funds are more than own funds and the
firm, which makes the firm lower credit-worthiness.
Gross Profit %
This is the trading profit before indirect expenses and taxes expressed as a
percentage of total sales. It measures the efficiency of a firms operations as well
as indicates how products are priced.
Net Profit %
This is the profit after all expenses including direct and indirect expenses but
before taxes expresses as a percentage of total sales. It is a more specific measure
of the efficiency of a firms operations.
By considering both Gross Profit % and net Profit % together, we are able to gain
considerable insight into a firms operations and the part played by the direct and
indirect expenses.
Operating Cost%
As a percentage of Sales Accounts
This is total cost including direct and indirect expenses but before taxes expressed
as a percentage of sales. A high ratio shows that even a slight rise in costs would
be risky and might necessitate increase in price.
Return of Investment %
(Net Profit/Capital + Net Profit)%
Net Profit here is Profit after all expenses but before taxes. This is a profitability
ratio that an investor is most interested in. The investor needs to know how much
is earned on each dollar invested. If the investor finds other avenues that give
better returns, he will move his money from the firm.
Return of Working Capital %
(Net Profit/Working Capital)%
This is another profitability ratio that ignores sunk costs in fixed Assets and
assesses how profitably a firm uses its net current Assets.
Receivable Turnover in Days
Payment Performance of Debtors
Its an efficiency ratio that measures the quality of a firms receivables and how
successfully it collects its debts. Receivable Turnover in days is a figure that tells
us the average number of days that receivable are outstanding before being
collected. It should be compared w9ith the average credit policy of the firm.
Display Reports
Display Trial Balance
Gateway of Tally Display Trial Balance
The Trial Balance Report provides account balance listing for all
accounts for the company sorted according to groups, i.e., the Trial
Balance is displayed in grouped form with main grouped form with main
groups and their closing balances. The fact that the debit and credit
balances match proves the arithmetic accuracy of the entries.
In tally, the matching of the Trial Balance is a foregone conclusion as all voucher entries
are in the debit and credit format and must balance at the entry point.
Note: As per accounting principles, the Trial Balance does not list Closing Stock.
You can drill down a Group for further details of that particular group.
Or
Select Detailed to break down the grouped information to another level.
Or
Select Led-wise to take an alphabetic listing of all ledgers and their closing balances.
Select Column to bring up the closing balances for another date.
Account Reconciliation Statement

Take a single report that shows the flow of the acco9unts from Opening Balance to the
effect of transactions on closing balance.
Select F12:Configure
Set the options as below:
The trial balance reconciliation statement is produced:
Day Book
Gateway of Tally Display Day Book
The Day Book is a list of all transactions for a particular day, by default the current date.
It can also list all the transactions for a period. Transactions include all financial
vouchers, reversing and memorandum journals as well as inventory vouchers.
Day Book for the current date:
Day book for a period:

Press Alt+F2 to change the period:
Account Books
Cash/Bank Books
Gateway of Tally Display Account Books Cash/Bank Books
Statement of Accounts
Outstanding
Receivables and payable
Receivables and Payable are the two key components of any
companys working capital as well as its business activity.
Receivables are part of current assets, whereas payables are of
current liabilities. Both influence the short-term liquidity and
financing of the company considerably. Effective control of these
outstanding is necessary for the company to be financially sound. To
view the Receivables and Payables screen
Gateway of Tally Display Statement of Accounts Outstanding

The following screen displays.
This report displays all outstanding receivables invoice by invoice till date. Remember
that this report takes into consideration only those accounts that have Bill-by-Bill option
activated.
Date
This is the Effective date of the invoice and not the actual date. Hence, if your
invoice date is 15 November but the effective date is 30 November, 30-Nov-08
will be displayed here. Credit period is calculated from effective date
Reference Number
This is the Bill reference number that was entered in the Bill-wise Details.
Partys Name
The ledger name appears in this field.
Pending Amount
This is the outstanding balance on a particular invoice. To see the breakup, press
SHIFT + ENTER.
If you want to see the breakup of all the bills, select the F1: Detailed button. This
toggles with the button F1: Condensed.
Due On
This is the due date of the bill (with reference to the Effective date) specified
during voucher entry.
Overdue by days
This is the period in days from the due date to the end date of the report. In the
above example, the end date is 2-April-2008
Drill-down
You can drill down any invoice for further details.
Buttons
Print the report or e-mail it or use other buttons to configure, make a query or
change the format of the report.
Payables (Bills Payable)
To view the Bills Payable screen
Gateway of Tally Display statement of Accounts Outstanding Payables
Note: Payable is treated exactly the same way as Receivables.
Age-wise Analysis for bills outstanding

1.
2.
3.
1.
2.
3.
Gateway of Tally Display Statements of Accounts outstanding receivables/

payable/ ledger/ groups
Select the group
Select F6: Age-wise and one of the two methods of Ageing.
Ageing by Bill Date
Ageing by due Date
Set the age periods required for the report
Bank Reconciliation
Reconciling the companys Bank Accounts with the Bankers Statement is a fundamental
and regular task of Accounting. Our first presentation of this facility aims to tackle two
issues.
First, there should be the ability to check back the correctness of the reconciliation. This
has been done, by marking the Bank Date against the voucher. For instance, if you have
issued a cheque on 8th April, which was ultimately cleared by your Bank on 19th April, you would set the bank date for the voucher to be 19th April. This means, that when you
next need to check back whether the entry made by you is correct, you will only need to
verify the bank statement of the 19th.
Second, that you should be able to recover the reconciliation as of any date. This is of
crucial importance to Auditing. This Bank Reconciliation is one of the pre-requisites of
Auditing and verification of the correctness of accounts at the year end. However, it is not
a real-time task in the sense that it is not done by the auditors on the first day of the
next year. This means, that the reconciliation made on 31st Mar, should be viewable
even in August, - by when almost all the cheques would have subsequently been marked
as reconciled. This has again been achieved using the concept above.
Bank Account may have a different Starting Date for reconciliation purposes. When you
create a Bank account, you are requested to give an Effective Date for Reconciliation
just before the Opening Balance. Normally, this would be the Books Beginning from
Date itself. However, You could have imported data from a previous version of Tally or
from any other system (where the reconciliation process was not available or was
different. In that case, you may not wish to reconciliation facility to be activated. Then,
previous entries will not appear for reconciliation, but will be taken as a reconciled
Opening Balance.
A quick experiment with Reconciliation will show you what is meant. Here is how you go
about it:
1. Bring up the monthly summary of any Bank Book.
2. Bring you cursor to the first month (typically April), and press Enter, this brings
up the Voucher for the month of April. Since this is a Bank Account, an
Additional button F5: Reconcile will be visible on the right. Press F5.
3. The display now becomes an Edit Screen in Reconciliation mode. The primary
components are: a Column for the Bankers Date
4. The Reconciliation at the bottom of the screen, showing:
5. Balance as per Company Books
6. Amounts not reflected in Bank
7. Balance as per Bank
The Balance as per Company books reflects your balance as on the last date (in our
example case, 30-Apr).
The Amounts not reflected in Bank is the debit and credit sums of all those vouchers
whose bank date is either BLANK, or GREATER than 30-April (i.e. these vouchers have
not yet been reflected in the Bank Statement).
The Balance as per Bank is the Nett effect of your Book balance offset by the amounts
not reflected in the bank which should equal the balance in the bank statement. (Of
course, some variation may persist due to entries made in the Bank Statement which you
have not yet entered in your books but since you WILL definitely enter them, and only
then print your reconciliation, it will ultimately reflect the correct balance).
You will find, as you mark off the individual vouchers by setting the Bank Date, that the
Reconciliation at the bottom screen keeps reflecting those changes instantly. When you
are finished, press Ctrl+A(or press Enter as many times as necessary to skip over the
unmarked voucher), and accept the screen. (If your screen has a largish number of
vouchers it may take some time to complete the acceptance be patient).
The next time you come for reconciliation, you will be presented only with those
vouchers which remain unreconciled. Thus, the task keeps becoming simpler.
(It may be possible, that due to an error of entry made earlier, you wish to see those
vouchers which are already marked as reconciled so that you may modify their marking.
To do this, press F12:Configure. In case you have already pressed a few keys BEFORE
pressing F12, Tally will query whether you wish to discard changes made so far, if any,
by asking Quit Y/N. Simply press Y and the configuration screen will appear. Here,
specify whether you wish to see the reconciled vouchers also).
Remember, to print your Reconciliation, just press Alt+P!
Group Summary
Gateway of tally Display Account Books Group
Summary
The group summary statement shows the closing balances
of the accounts falling under the selected group for the
period up to the current date. The standard view is that of
sub- Groups in the groups.
Group Vouchers
Gateway of tally Display Account Books Group Vouchers
Sales register (sales day book)

This explanation should be used for all day books and voucher register.
Gateway of tally Display Account Books Sales Register
All registers first display the monthly summary with transaction and closing balance. For balance sheet
account, opening balance will be given at the top. Select a month and press enter to see the sales voucher
register.
This is a list of all sales vouchers for that month. Use the option in the button bar to change the details. You
can change the period of the report as well as the depth of information. Use F12: Configure to see the
report with some or all of following details: narration, bill- wise details, cost centre details and inventory
details. Click on Detailed to see all the detail selected.
Journals, Day Book and Registers

Journal, sales register, purchase register, debit note register, credit note register, payment register,
receipts register, e.t.c..
There are three ways to see different register:
1. From the display menu
2. By changing the voucher type from within the register
3. From the statistics page
We will discuss the sales register, which has the most options. Other Registers are similar. Please. Please
use the same explanation (except for Invoice Profitability) for other registers.
Account Books and Statements

Cost Centre/Categories Reports
For conceptual information on Cost centre and cost Categories, please look up the
relevant chapters under Accounts information.
Cost Centre Reports are primarily performance reports that give different views of how
transactions and their relation to cost centers.
To access Cost centers Reports.
Gateway of tally Display Statements of Accounts Cost Centers
Display Inventory Reports & Statements

Tally prepares the inventory reports based on the vouchers you have entered to date. You
can then vary the appearance of reports according to your needs, for example, to make
comparisons between different companies, periods of the financial year, and so on.
In each case, when you display a report, you can step-down to the next level of detail by
highlighting the and pressing enter, and you can keep going until you reach an individual
voucher. Similarly, you can step back to higher levels by pressing [Esc]. The special
feature available for the currently displayed report are indicated on the button bar, and
can be selected with a single of the mouse.
In other words, inventory operates in exactly the same way as accounting regarding
displaying, modifying and printing the reports, and so you can use the knowledge gained
during the accounting module to good effect with inventory.
Because it is very similar in operation, the function of the buttons on the button bar and
the various printing options are not repeated here. Instead, this unit concentrates on
highlighting some of the special inventory screens, before giving you the opportunity to
practice.
Inventory Books
Stock Items
Gateway of Tally Display Inventory Books Stock Item
Sales Order Book.
Purchase Order Book
Stock Transfer
Ageing Analysis
A very important function of Working Capital management is monitoring stocks.
Money locked up in stocks can adversely affect the liquidity of a company and
every company strives or should strive to reduce stock levels to the optimum.
Every business (except perhaps the liquor and antiques dealers) would prefer to
dispose of older stocks as they might deteriorate with time, go out of fashion, or
simply get forgotten. Tallys aged stock analysis or stock ageing enables you to
know the age of stocks in hand according to when they were received and the
purchase value.
How to View Ageing Analysis
1. Gateway of Tally Display Inventory Books Ageing Analysis
Display Inventory Books Ageing Analysis
2. Select the group of stock Items.
The Ageing Analysis report produces a default ageing period of (45 days, 40-90
days, 90-180 days and) 180 days. You can change the setting by using F6. The
default report displays stock values based on Actual Purchase invoice. Use Hide
Amount to view the report without values as has been done above.
Note: As Negative Stocks cannot be aged, they are shown in a separate column.
Item Inward Details
Age Analysis is done for stock-in-hand based on when it was purchased. The Item
Inwards details statement provides further information of aged stock such as date
of purchase and supplier, and allows drill-down to the actual transaction voucher.
Go to Gateway of Tally Display Inventory Books Ageing Analysis

Move the cursor to any of the age-wise column (i.e.., <30days, 30 to 60 day,> 60
Days) for an item and press Enter.
Godown Summary (Location Summary)
The Godown/Location Summary Statement Shows the Stock Summary for different
Godowns/Locations. While the main Stock Summary shows the stock position for the
entire company on a given date, the Godown/Location Summery is a statement of stock in
hand at each location on a particular date. As with all Tally statement, it is updated with
every transaction so that it provides current stock position for any godown/location at any
time. The statement can be drilled down a s with all Tally reports, and configured to view
different details. It is also possible to see the total flow of stock for each location in a
single report.
Gateway of Tally Display Statements of inventory Godown/Location
Sales Bills Pending

Gateway of Tally Display Statements of Inventory Sales Bills Pending
Sales Bills pending Report is created when Tracking Numbers option is active,
It lists out all instances of incomplete sales where goods may have been delivered but not
fully invoiced. It also lists instances of invoices raised but for which goods have not been
delivered.
Purchase Bills pending
Gateway of Tally display Statements of Inventory Purchase Bills Pending
Purchase Bills pending Reports is created when Tracking Numbers option is active.
It lists out all instances of incomplete purchases where goods may have been received but
not fully invoiced. It also lists instances of invoices received but for which goods have not
been received.
Reorder Status and quantities to order

Gateway of Tally Display Statements of Inventory Reorder Status
Select from List of Groups of Stock Items
Cash and Fund Flows

Cash management is essential for any business. Many companies
continue to be project profits even as they go into liquidation
because of insolvency. Businesses close down because of lack of
cash despite being profitable. Cash and Fund Flow Statements aid
in cash management and are an important component of
management accounts
List of Accounts (Chart of Accounts)

You create the chart of accounts from the Accounts Info menu.
However, to view an existing chart:
Gateway of Tally Display List of Accounts
The List of Ledger is displayed in alphabetical order of main
groups. Hence, Branch/Divisions is listed first and not the account
name Anil, which is under the group Capital. Note the indentation
and change in font. The groups are in bold, and begin on the
extreme left, sub-groups slightly indented towards the right and still
bold, while at the lowest level it is the ledger account, which is in
italics and not bold.
Exception Reports
Exception report are reports that track unusual transactions or
balances. The different Exception Reports are:
Gateway of Tally Display Exception Reports
1. Negative Stock
2. Negative Ledgers
3. Overdue Receivables
4. Overdue Payables
5. Memorandum Vouchers
6. Post-dates Vouchers
Exercise
1. Chech all the pending bills and orders for debtors and creditors.
2. Display balance sheet and P&L in vertical mode.
Hint:
1.
2.
Match Profit & loss Account

a) When Account & Inventory are Integrated
b) When account & Inventory Are non-integrated
Balance Sheet
Loss: 61,942.00
Loss: 59,757.00
6,68,597.00
Import & Export of Data

Session -10
Import of Data
Importing master data
Gateway of Tally Import of Data
A File containing the masters and vouchers
exported from another Tally company data
should exist so that it can be imported and
merged with the data of the current company.
On selection of All Masters/vouchers, you will
be required to give the source file name and
format in which it is to be imported. Give the
full path of the source file. Data may be
imported in Tally from Tally 4.5 Format, or
Tally 7.2 Formats are inherently richer in
content. Lists of Accounts (Masters), and
Vouchers (e.g. Daybook), exported out from
Tally ies 8.1 are in this format, and may be
imported into another company or location. A
typical use of this facility is to export the daily vouchers from a Branch, and sent it to the
Head Office for importing into the main Accounts.
Tallys design permits it to import any kind of data. It is capable of being programmed to
use data from other systems much more easily. This permits you to continue using other
systems and use some of their data in Tally as if they were parts of one integrated system.
Export of Data
Export of data is provided mainly for summaries and statement reports like Trial Balance,
Stock Summary, etc. The main use would be to export data to, say, a spreadsheet, and
reorganize it for statutory presentation. Or export it to another company using Tally that
will import it directly.
Export Master Data

Gateway of Tally Display List of Accounts
Click on Export
File Name
The file name is required and can be anything.
Format
Four formats are available for selection ASCII, SDF, HTML, XML. Select HTML
only if you want to publish or display it. If the export is required to import the file
into another system, select any of the others.
Type of Master
A wide selection of masters is available.
Import of Masters
Import Masters
Ensure that you have the Company activated where you want to import masters. If
the Company is not selected, load the Company. Select Import Masters. Type in
the file name. The name and path of the source file should match.
Import Vouchers
Return to Gateway of Tally and select Import of data> Vouchers. Type the file name. The
name and path of the source file should match.
Tally ODBC
Tally captures all the information related to your business. There are many situations
when you would like to get the information presented in a different format or wish some
additional input. With Tally 8.1, you can create a format in ODBC compliant application
like Ms Word or Ms Excel, plug tally data fields to pull data real time form live tally
database to create your on update report.
The full form of ODBC is open database connectivity. It is a standard programming
language interface used to connect to data source. You install ODBC drivers for various
databases that enables you to connect to the databases and access there data.
How to use ODBC
A brief exercise will explain the process.
We wish to send greeting cards to all our customers. The customer databases in Tally
already exist. You want to use the names and addresses that you stored there to print out
labels for the Greeting Cards. For this job, we will use Tally data in MS Word.
Start Tally. It should keep running.

Ensure that the words ODBC Server is visible in the Gateway of Tally screen
1. Start MSWord Select Tools Select mail Merge
2. Main Document Create Mailing Labels
3. Now press the Data Source button
4. Get Data Create Data Source
5. Click on Ms Query (At the bottom of the dialog box beside File Name)
6. Select Tally ODBC. (you could use a saved query by clicking the Tab Queries. Do
that after you have saved this query that we are creating)
7. Select Ledger and move by click>button to the right the following fields:
$Name, $Parent, $Address (move all the other address fields as well.
Then in the next Query Wizard Screen Filter data to limit all ledger accounts belong to
the Group that contains the name Customer. (In our Sundry Debtors Group we have
created sub-groups called Trade Customers below which we have different Customer
Groups as well) We want to print labels for customers only.
You can save the Query for future use.
Then the process of Mail Merge is intuitive and is the domain of MS-Word. You can set
up the main document and bring in the Create Labels dialog box,
Insert Merge fields from Tally. The labels will be created.
Exercise
1. Create a Company with your name.
2. Export all the Data of Raj Computers.
3. Import the Data in your new company.
Printing
Session -11
Printing reports
Reports and documents generated through Tallys extensive display capabilities can also
be printed. Printing is possible in two ways:
Using the Print Button

You can choose to print directly from the screen currently displayed by selecting the
button PRING (top-most button on the right-hand side of the screen). This brings up the
Print Configuration screen for the report and new button options on the right-hand side of
the screen.
Multiple Printing
Principally geared towards printing the Primary Books of Accounts, like the Cash and
Bank Books, Accounts Ledgers, Sales and Purchase Registers etc, without needing to
select the accounts one at a time and pressing Alt+P. the facilities provide for printing
One Account at a time, all Accounts in a selected Groups. Before printing, the date range
and other selections may also be set up.
The
current
mechanism of printing
used by Tally, will
require that for large
company
accounts,
you choose to print
each large company
accounts, You choose
to print each ledger
account on separate pages, - otherwise the memory requirements of the system become so
large as to bring most systems to their knees.
Common printing options affect the printing of current selected reports. They are changed
by selecting the appropriate button on the right-hand side of the screen:
With Preview:
To view the report on screen before
printing.
Titling:
To change the title of the report.
Page Nos:
To specify the starting page number and
page number range.
Pre-Printed/ Plain Paper:
Toggle to make the selection.
Print Format:
A pop-up list displaying the printing formats available in Tally. The formats
provided are, Dot-Matrix Format, Neat Format and Quick (Draft) Format.
With Colour:
This option is only relevant if you have a colour printer.
Copies:
To specify the number of copies to be printed.
Printer:
To change the printer settings. This also displays the default paper size that you
have set for the printer.
Print Format
Print Format is a button that appears on the Print screen (after pressing Alt+P or clicking
on the print button). Click on the Print Format button, Tally displays a list of Print
Formats as follows:
Neat Mode and Quick/Draft mode print formats are compatible with most of the printer
drivers installed on the Windows opening system. Dot Matrix Format in Tally is a special
print format that allows you to print Tally reports in text format using the Blazing speed
of Dot Matrix printers.
Select Dot Matrix Format, the screen appears as:
By default, the Epson printer drivers have been defined. You may install Epson Printer
drivers in Windows for any Dot Matrix printer and use this format for faster report
printing!
Note: Any Dot Matrix printer may be used, but ONLY the Epson printer drivers (LQ and FX series) should
be used for Dot Matrix Format printing of Tally.
Draft Mode Printing (Quick Format)

Almost every report can also be printed in Draft Mode (except for Cheques!). The default
behavior of Tally is to print in Neat Format and you may alter this by Pressing Alt+F jut
before printing all subsequent reports will be printed in Quck Format, until Alt + F is
pressed agin at the Printing Screen. (The button equivalent for this is marked Quick
Format),
Multi-Account Printing
This option enables the printing of the primary Books of Accounts, like the Cash and
Bank books, Account Ledgers, Sales and Purchase Registers etc., without having to select
the accounts one at a time and printing them.
Go to Gateway of Tally Multi Account Printing.
Choose between the options account Books, Inventory Books, Day book and Multi
Voucher Printing.
You can select the date and other selections before printing
Drill-down to Accounts Books, Outstanding statements and Inventory Books and select
the appropriate reports to print. Change the common printing options by selecting the
appropriate buttons on the right side of the screen.
Printing All Accounts

Gateway of Tally Multi-Account Printing Outstanding Statements Ledger All
Accounts
When printing the Ledger Outstanding screen, if show contact details is set to Yes, and
Start Fresh Page for each Account is set to No, the Contact Person and the Tel. No. fields
are displayed below each ledger account in the same page.
Printing Configuration
General
Gateway of Tally F12 Configuration printing
This configuration is applicable for all print reports.
Print Date & Time of Report
This option enables printing of system date and time on each
report. These are printed on the top right corner of the report as
a control mechanism. It should not be confused with the date
range of the report
Note: Vouchers and Invoices are not reports.
Stop printing Vertical Lines/Borders

Set this to Yes to avoid printing of vertical lines and borders in
dot-matrix printer. This helps in faster printing.
Standard Space on Top of pages (Inches)
This field is set to 0.5 inch by default. However, you can
change it as per your requirement.
Settings for Quick Format

Tally prints in two formats Neat and Quick. Neat printing takes advantage of fonts
Of the printer and is the default. It also compresses long data like long names and
amounts and auto-fits them according to space.
Quick printing is suitable for Dot Matrix Printers where speed is an issue. Hence, quick
printing does not print fancy fonts. The auto-fit facility is, thus, is not possible quick
printing.
Therefore, it will truncate data longer than the allotted space. To prevent this, set the two
fields under settings for Quick Format to Yes.
Purchase Voucher/Invoice and Purchase Order
Purchase voucher/Invoice, Receipt Note and Purchase Order are printed to maintain
continuity in voucher numbers and to provide a document to record a transaction. To
configure, select Purchase Transactions under Printing.
Purchase Voucher/Invoice
Receipt Notes
Receipt Notes are entered in the same format as Delivery Notes, and if Purchase
Orders are enabled, the details of the order would automatically get filled-up.
Further, Purchase Invoices would also auto-fill with the receipt Note or Purchase
Order details as relevant.
Purchase Orders
Purchase orders are required to be printed and sent to suppliers.
Payment/Receipt/Journal Vouchers, Credit Note/ Debit Note

Configure the dimensions and details as per your requirements to print
Purchase Orders are required to be printed and sent to suppliers.

The above options pertain to payment Vouchers. The Options for Receipt Vouchers,
Journal/Contra, Debit/Credit Note are similar.
Sales invoice, Delivery Note and Sales Order/Quotation

Printing configuration for all sales vouchers like Sales Invoices, Delivery notes and Sales
orders/quotation are accessible through sales Transactions under printing menu, Each
transaction type can separately configured and selected from the sub-menu.
Details of the above configuration options have been discussed in Invoice Entry section.
Delivery Note
Delivery Note appears similar to invoices. Fields like Rate and Amount may be required
by some companies to be printed out on Delivery Notes. Select the options as relevant to
your company. Sales Order/Quotation.
Sales Orders, if marked Optional, during voucher entry, are printed as quotations.
Reminder Letter
The reminder Letters feature in Tally can be used to remind any customer or supplier of
their overdue bills.
Space to leave on top (default 0.5 inch) and Space to leave on left (default 0.5 inch): these
fields are set to 0.5 inch by default. However, you can change it as per your requirement.)
Information in First Paragraph and Information is second Paragraph: the information
provided in these two fields can be used as such, modified or extended.
Confirmation Statement
Confirmation Statement are not the same as Reminder Letters. They serve to confirm the
account balances with customers, suppliers, lenders and borrowers. This is used mostly at
the end of a period but can be produced at anytime.
Space to leave on top (default 0.5 inch): this field is set to 0.5 inch by default. However,
you can change it as per your requirement.
Titling for Subject in Letter: the default text is Confirmation of Accounts. You have
the option of changing it as per your requirement.
Information in first Paragraph and information Second Paragraph: the information
provided in these two fields can be used as such as such or modified or extended.
Sing-off used for the Letter: the default text can be changed in this field also.
Taxation
Session -12
Service Tax
Features of Service Tax in Tally ies 8.1
Service tax integrated in Tally 7.2ies takes care of your service tax transaction. It
eliminates error-prone information, incorrect remittance, penalties, compliance, interest,
Compliance issues, etc. service Tax in Tally ies7.2 needs a one time configuration for
service tax to be activated.
Tally tracks bill-wise(bill by-bill) detail and automatically calculates
service tax payable and input credit with the flexibility to make
adjustment later.
Service tax is part of a regular transaction. Information on service tax is
maintained and produced category-wise, which is mandatory-in service
tax returns.
Adjust input credit towards service tax payable.
Accounts for abatement and expenses.
Provision for exemption notification details.
Built-in assessable value feature on which service tax is calculated.
Transfer earlier pending service tax payable and available service tax input
credit in to Tally
Reports are generated as per government suggested format. Print and file
reports: TR6 Challans.
Management information services (MIS) reports: service tax payable
report.
Entering Service Tax Details

Gateway of tallyF11 Statutory &
Taxation
Company Service Tax Details

The Company Service Tax Detail screen is where you will enter the service tax details,
The name of the company is displayed at the top followed by different fields.
Service Tax Registration No.
Enter the registration number allotted to you by the Service Tax Department.
Date of Registration
Enter the code given to your company by the Service Tax Department.
Type of Organization
In this field select the type of your organization from the List of Organizations menu.
Major Service Category Name
Here you will find options for different categories that corner under the service tax net.
You might be providing two or more services in a company. In such a situation, select the
service category that is the mainstay or forms the major part of your business.
Select the relevant option from the List of Service Categories that applies to your
company.
Credit Adjustment (%)
By default this field is set to 20. Enter the percentage of credit adjustment that uou would
like to avail.
Division
Code- The code of the division in which your company falls.
Name- Enter name of the division under which your company falls.
Range
Code- Enter the code of the range of your company
Name- Enter the name of the Range under which your Company Falls.
Commissionerate
Code- This is the code of the Comrnissionerate of Service Tax under whose range
the address of your registered premise is located.
Name- This is the name of the Comrnissionerate of Service Tax under whose
range the address of your registered premise falls.
Focal Bank Details

Focal Bank Code
The Commissionerate of Tax allots a code to banks

nominated for payment of service tax in a particular area.
This code is available with commissioner ate of Service
Tax.
Focal Bank Name This is the name of the bank nominated by the
commissionerate of Service tax to receive service tax
payments in a particular area. This information is available
with the Commissioner ate of Service Tax.
Focal Bank Address Enter the address of the branch of the focal bank.
Press Enter, once you have entered the service tax details. This will take you to
the company Operations Alteration screen. Accept to save the change.
Creating Masters
Creating Party Ledgers
You can activate service tax in the party ledgers at the moment of creation of
ledgers or in alteration mode of ledgers. Set yes in the service tax applicable field.
For parties for which service tax is applicable you get another screen to specify
the exemption details. If Party is exempted from service tax by any government
notification set Yes at Is exempted field and enter notification number at
Notification details.
If party is not exempted from service tax set No at Is Exempted Field.
Specify service tax registration particulars of the party eg. Registration No.
Registration Date)
Exemption Notification
Set Yes in the is Service Tax Applicable? Field. This will display the exemption
Notification Number screen.
Creating Service Tax Ledgers

You will have to create a service tax ledger to calculate service tax. The rate of service
Tax and rate of cess are predefined values in Tally and this can be changed in a
transaction.
Gateway of Tally Accounts Info Ledger Create.
In this screen enter the service tax ledger name in the Name field. In the Under field,
select the Duties & Taxes option from the List of Groups.
In the Type of Duty/Tax field select Service Tax from Type of Duty/Tax. Enter other
details and press Y or Enter to accept.
Service Tax Category

To get the service tax category select
Gateway of Tally Display Statutory Masters Service Category
Select the category you want to display. It will show you code, accounting code, category
code, applicability date of service tax in this category with service tax rate and cess rate.
Creating Sales Ledger for Services

If you are selling a service then create a ledger for the service provided. These ledgers can
be in Sales accounts or Direct Incomes Groups. Enter the name of the service you provide
in the Name field. In the under field; select sales Accounts/Direct Incomes from the List
of Groups menu. Set the Is service Tax Applicable? Field to yes. Select the category of
service form the List of Service Categories.
Service Tax Display in Statutory Masters

You can view the values in each service category in tally. These are predefined values
and any changes can be updated from the Tally website.
Gateway of Tally Display Statutory Info Service Categories
Select the service category which you want to view. This Service Category screen has a
name field showing the category. This is followed by the Code, Accounting Code and
Category fields.
The Applicable From column displays the period for which the Abatement (%), Service
Tax Rate(%), and Cess Rate (%) are applicable.
Voucher Creation
Sales Voucher Entry
If you have already computed service tax you may enter sales voucher in voucher mode
or if you want to get service Tax Computed use invoice mode to enter sales voucher.
In voucher mode: Enter the sales entry as following:

Dr: Party A/c
Cr: Income A/c
Cr: Service Tax (Ledger Created Under Duties and Taxes Group)
In invoice mode: select the party ledger then select the service income at sales ledger
field. At table area, select service income ledger and enter the service charge amount.
Next select the service tax ledger. On selection of service tax ledger account you get a sub
screen to enter the details to compute service tax. Enter the service tax rate and cess rate.
The total service tax is posted against the bill reference number.
Creating Sales Vouchers

Gateway of Tally Accounting vouchers (transactions/Vouchers). This will open the
Accounting Voucher creation Screen. Select F8: Sales to create a sales voucher.
Select the service tax ledger to be credited from the List of Ledger Accounts. This will
display the Service Tax Computations Screen. This screen gives details of the default
values for service tax ledger to be credited from the List of Ledger Accounts. This will
display the service Tax Computations screen. This screen gives details of the default
values for service tax in the ledger. You can alter these values here. There is an abatement
field and Expenses field to arrive at the Assessable Value. The Service Tax and Cess is
calculated and displayed. Enter a new reference in the New Ref field.
The Bill-wise details screen is displayed. Select a new reference from the Method of Adj.
Enter the due date or credit period, if any. Enter the service Tax Ledger from the List of
Service Tax Ledgers.
Use the Narration field to enter other information field to enter other information. Accept
to save the entries.
Crediting Receipts and Payments Voucher

Open Tally, Gateway of Tally Accounting Vouchers (Transactions/Voucher). This will
open the Accounting Voucher Creating screen. Select F6: Receipt to create a receipt
voucher.In the Particulars table, select the company to be credited for the payment
received from the options in the List of Ledger Accounts. Enter the amount received in
the credit field
Select the method of adjustment from the Method of Adj Field and the List of Pending
Bills From the bill-wise details screen.
Now select the bank/cash ledger where the payment is to be debited from the list of
Ledger Accounts menu. Enter the amount received in the Debit Field. Enter details of
the receipt in the Narration field.
Deposit of Service Tax

To deposit the service tax payable as per service tax payable reports, create a payment
voucher, select service tax account. The bill allocation screen appears select angst ref to
get the list of bills for which tax is payable. Tax amount payable appears as default.
Input Service Tax

Some organizations buy services paying service tax. If the service is bought to render the
service sold, then service tax paid on service purchased (Called Input Credit) may be
adjusted from the service tax payable on services rendered.
At company Service Tax details at credit adjustment rate, enter the rate of service tax
credit. Enter the credit adjustment %. Normally it is 20% (where the expenses relating to
tax credit are not solely attributed to service income).
The purchase service tax may be adjusted to the extent of credit adjustment %. Say if the
rate is 20% then only 20% of the input credit may be adjusted.
Service Tax Reports

Gateway of Tally Display Statutory Reports Service Tax
Reports.
There are four types of reports in the menu:
TR6 Challan
Service Credit Form
Input credit Form
ST3 Report
TR6 Challan
This report is to select a range of TR6 payment voucher to be
printed in one challan to file to the government.
Gateway of Tally Display Statutory Reports Service tax Reports TR6
Challan
Service Tax Payable

Gateway of Tally Display Statutory Reports Service tax Reports
Service Tax Payables
This will display the service Tax Payable screen.
Select the period for the report using the F2: Period option, This will display the
service tax payable for the selected period.
Input Credit Form

Input Credit Form report displays details of Service Tax input credit available
with the company for a specified date.
This can be used as a supporting form while filing the half-yearly returns using the
ST3 report.
Select the period for the report using the report using the F2: Period option. The
report displays input credit available up to the period of the specified date.
ST3 Report
The ST3 Report is a statutory report. This report displays the ST3 Form in
government prescribed format that is used to file half yearly service tax returns to
the commissionerate of Service tax.
Gateway of Tally Display Statutory Reports Service Tax Reports ST3
Report
Use the Alt+P key or click on Print Option to print your report.
This will display the form ST-3 screen.
ST3A Report
The ST 3A report is a statutory report. This report displays the ST 3A Form in the
prescribed format and is filed quarterly or half yearly as the case may be. This
gives details of the difference between service Tax deposited to the government
and the Service Tax Liable to be paid for each month in a memorandum in Form
ST 3A, which will be accounted quarterly or half yearly as the case may be.
Gateway of Tally Display Statutory Reports Service Tax Reports ST 3A

Report
Enter the dates of ST 3A period in the From and to fields and accept the screen.
Dealer Excise
Dealer Excise in Tally
The dealer excise functionality in Tally supports the following features, marking it easy
for computation:
1. Easy to use
2. Fast and error free voucher entry
3. Complete tracking of Excise duty on each transaction
4. Printing of Excise invoice with the supplier & Manufacturer details as User
configurable option.
5. Reports are generated as per Central Excise Statutory requirements
6. Generation of Quarterly Return in Form-2
Enabling Excise in Tally

You can enable Dealer- Excise in Tally, in the F11: Features screen.
Gateway of Tally F11: Features Statutory & Taxation
The company Excise Details sub-form appears as shown below.
ECC/PAN Based Regn/Code No.
The 15-Digit PAN based registration number is an alphanumeric number
mentioned in the registration Certificate. The first part would be the 10-character
(alphanumeric) Permanent Account Number [PAN] issued by the income Tax
Authorities to whom the registration number is allotted (includes a legal person).
The second part comprises a fixed 2- character alpha-code indicating the category
of the registration. The third part is a 3-charecternumeric code.
Commissionerate
The Commissionerate of central Excise is the division under which your
registered premise is located.
Range
Code: Enter the code of the range under which your company is registered.
Name: Enter the name of the range under which your company is
registered. Address: Enter the address of the range under which your
company is registered.
Division
Code: Enter the code of the division under which your company is
registered . Name: Enter the Name of the division under which your
company is registered. Address: Enter the Address of the division under
which your company is registered.
Creating A Party Ledger

Gateway of Tally Account Info Ledgers Create
The ledger creation screen appears as shown below:
1. Enter the name king in the Name field.
2. Select the group sundry Creditors in the Under field.
3. In the Mailing Details section enter the supplier contact details, Income Tax and
Sales Tax numbers.
4. Set Excise Details to Yes to display the Excise Details sub form.
5. Enter the Excise Registration Number of the supplier.
6. Enter the Range under which the suppliers company is registered.
7. Enter the Division under which the premise of the Suppliers Company registered.
8. Enter the division under which the premise of the Suppliers company is
registered.
9. Select the default Nature of purchase form the nature of purchase list. The table
lists the type of Purchase, which can be changed during transactions.
Note: The Excise details sub-screen appears for ledgers created under Creditors and sundry Debtors
only.
Creating Customer Ledger

Creating customer ledger is similar to that of creating the ledger but it should be
created under sundry debtors.
Creating Stock Item

Gateway of Tally
Inventory info Stock item Create

The Stock Item Creation screen appears as shown below.
1. Enter the name of the
Stock Item in the
Name field.
2. In the Under field,
select the Group
under which the
stock Item is created
from the List of
Group list.
3. Select the unit for
the Stock Item from the Units list.
4. Set Excise Details to Yes to display the duty Details sub form as shown below.
Creating Voucher Type

The excise Voucher Type for Purchase, Sales, Credit Note and Debit Note has to be
created before creating the invoices.
Creating Purchase Voucher Type
Gateway of Tally Accounts Info Voucher type Create.
Name: Enter the name of the Voucher type.

Type of Voucher: Select the type of voucher as purchase from the list of voucher
types. Abbreviation: You may abbreviate the Voucher type as per your requirement.
Method of Voucher Numbering: Select Automatic for the method of Voucher
numbering. Use Advanced Configuration: Set it to Yes to specify the numbering
method, if required.
Use for Dealer Excise: Set this field to Yes to enter Excise Purchase to capture
Assessable Value and Excise Duty breakup.
Accept the screen to save after entering all the details.
Note: The use for dealer Excise option will appear in Purchase/Debit Note and Sales/Credit Note only
and if the dealer. Excise is enabled in the F11 Features F3 Statutory & Taxation.
Creating Sales Voucher Type

Creating Sales Voucher Type is similar to that of Creating a Purchase Voucher Type but
it should be created under the Sales Type of Voucher.
Creating a Debit Note Voucher Type
A Debit note Voucher type has to be created if a Debit Note has to be passed. The
voucher type should be created under debit Note type of voucher.
Creating a Credit Note Voucher Type
A Credit note voucher type has to be created if a Credit Note has to be passed. The
Voucher Type should be created under Debit Note type of Voucher.
Creating a Purchase Invoice
A Voucher Types created should be used for all the purchase and sales entries of Excise
transactions. The Excise feature supports Multi Currency and Voucher Class.
Gateway of Tally Accounting Vouchers Select F9: Purchase
1. Select the Excise Purchase Voucher Type from the list of Voucher types in the
Invoice mode.
2. Enter a reference in the Ref field.
3. Select the appropriate Partys Account Name (Manufacturer/Importer Ledger,
First Stage Dealer Ledger or Second Stage Ledger) from the list displayed
4. The Party Details sub-form will appear as shown below.
5. Suppliers Details
This section will include the consignee and supplier details like the contact details,
Sales Tax number and the Excise registration details. The details will appear
automatically if they are provided during the Supplier Ledger Creation.
Note: The consignee and the Supplier details appear if Allow separate Buyer and Consignee in F12
Configuration is enabled
6. Manufacturer/Importer Details
If your supplier I not a Manufacturer, enter the name, address, Excise registration
details Invoice numbers and date of Invoice, of the Manufacturer/Importer. After
entering the above details, the Accounting Voucher Creation screen re appears.
7. Select the Nature of Purchase from the list of Nature of Purchase. This field
defines the Suppliers role in selling the product to us.
Note: By default the Nature of Purchase selected in the Party Ledger Appears in the above field which can
be changed.
8. Select the Purchase Ledger.

9. Select the Name of the Item and the Item Allocations Screen appears.
10. Enter the corresponding details in the fields to accept the Item Allocation Screen.
11. The Excise Details sub-screen for the stock item will appear.
12. The Supplier Invoice No. is automatically captured from the Ref field in the
Voucher
Note: the Supplier Invoice Date and the Assessable Value is automatically captured however, it I an
editable field.
13. The Supplier Invoice Date and the Assessable Value is automatically Captured
however, it is an editable field.
14. Any additional cost apart from basic value falling under the purview of Excise can
also be included in the assessable Value field.
15. The Type of Duty and the Rate of Duty defaults, as specified in the Item Masters
Creation screen.
Note: The entries for the Excise Duty have to be passed in Invoice mode only.
16. Accept the Excise Details sub screen for the Voucher Entry screen to reappear.
Excise Report
To view Excise Reports
Gateway of Tally Display menu Statutory Reports Dealer Excise Reports.
The Dealer Excise Reports menu consists of two reports
Excise Stock Register

Every Registered Dealer has to maintain Stock Register recording the daily receipt and
issue of Excisable goods ready for inspection by the officers of the department.
The Excise Stock Register in Tally gives the purchase and sales information. It has two
sections, which are, the Receipt section for Purchases and Issues section for the
Sales/Debit Note/Credit Note details.
Gateway of Tally Display Statutory Report Dealer Excise Reports Excise
Stock Register
Introduction to VAT
VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is
the tax paid by the producers, manufactures, retailers or any other dealer who add value to
the goods and that is ultimately passed on to the consumer. VAT has been introduced in
India to ensure a fair and uniform system of taxation. It is an efficient, transparent,
revenue-neutral, globally acceptable and easy to administer taxation system. It benefits
the common man (consumer), businessman and the Government.
Enabling VAT in Tally

Gateway of Tally F11 Company Features Statutory and Taxation
VAT Details
-
Select the State Name

Set Type of Dealer
Enter the Regular VAT applicable from date
Composite Dealers
Dealer with annual gross turnover not exceeding a certain threshold (threshold-decided by
the respective State Government) can opt for a composition scheme whereby they will
pay tax as small percentage of their gross turnover. However, retailers option for this
composition scheme will not be entitled to input credit.
VAT Rates
Input VAT @ 4%
Purchase Exempted
Input VAT @ 1%
Input VAT @ 12.5%
Output VAT @ 4%
Sales Exempted
Output VAT @1%
Output VAT @12.5%
Ledger Masters
The VAT Classification will be displayed as a drop down list in the Ledger Masters. Tally
gives the flexibility to the user, to either have the classification selected in the Ledger
Master tagged to all transactions, or, select different classifications each time during
voucher entries. This is explained in detail in the Vouchers and Transactions section.
The ledgers that are affected by VAT are:
Purchase Ledger
Sales Ledger
Duties and Taxes Ledger
Direct Expenses/Income
Create Purchase Ledger

Gateway of Tally Accounts Info Ledger Create/Alter.
VAT Classification Purchase-Exempt
Create Party Ledger

Create Sales Ledger
Gateway of Tally Accounts Info Ledger Create/Alter.
Duties and Taxes Ledger

The ledger fir Input VAT is shown below:
The ledger for Output VAT is shown below:
Voucher and Transactions

The entire Data entry and Reporting architecture is based upon VAT Classifications
selected during Voucher Entry.
VAT Report
Gateway of Tally Display Statutory Report VAT Reports
Gateway of Tally Display Statutory Report VAT Reports VAT Forms
Tax Collected at Source (TCS)

TCS Introduction
TCS is Tax Collected at source by the seller (collector) from the buyer/ lessee (collectee/
payee). The goods are as specified under section 206C of the Income Tax Act, 1961.
If the purchase value of goods is X, the amount payable by the by the buyer is X+Y,
where Y is the value of tax at source. The seller deposits, lesser or licensor, is responsible
for the collection of tax from the buyer, lessee or licensee. The tax is collected for sale for
sale of goods, on transactions, receipt of amount from the buyer in cash or issue of
cheque, draft or any other mode, whichever is earlier.
Enabling TCS in Tally
To enabling TCS in Tally:

1. Gateway of Tally
2. Press F11 or click F11: features Statutory & Taxation to display the company
Operations Alteration screen.
3. Enter yes in Enable TCS and Set/Alter TCS details.
4. Enter the Company TCS Collector Details.
5. Enter the Tax Assessment Number. The Tax Assessment Number (TAN) is a 10digit alphanumeric number, issued by the income Tax Department (ITD) to the
collectors.
6. Enter the Income Tax Circle/Ward (TCS). This is issued by the Income Tax
Department
7. Select the collector Type from the list of company Type.
8. Enter the name of person responsible for filling the TCS returns.
9. Enter the designation of the person responsible for filing of TCS returns.
10. Press enter and Accept to save.
To create Party Ledgers for Sundry Debtors/ Sundry Creditors

1. Gateway of tally Accounts Info Ledger Create
2. In the ledger creation screen, enter the name of the buyer company in the Name
field
3. In the Under field, select Sundry Debtors/Sundry Creditors option from the List of
Groups
4. If required, set Maintain balance bill- by-bill? To yes. Enter details in the default
Credit Period, if applicable. By default, the Inventory Values are affected? Field is
set to No
5. Set Yes for Is TCS Applicable?
6. Select from the List of Collectee Type Types for Buyer/Lessee
Creating Sales Ledger for TCS

1. Gateway of Tally Accounts
Info Ledger Create
2. Enter a name for the sales account
ledger in Name field
3. In the Under field, select Sales
Accounts from the List of Groups
4. Set the Inventory Values are
affected? to Yes if you are
maintaining inventory
5. Accept to save
Creating TCS Ledger under Duties and Taxes

To create a TCS Ledger under Duties and Taxes for TCS on Sales
1. Gateway of Tally Accounts Info Ledgers Create

2. In the Ledger Creation screen, enter the name of the TCS ledger in the Name field
3. In the Under field, select the Duties & Tax from List of Groups
4. Select TCS from Types of Duty/Tax in the Type of Duty/Tax field
Creating Sales Vouchers for TCS

To create a TCS Ledger under Duties and Taxes for TCS on Sales
1. Gateway of Tally Accounting Vouchers

2. In the Accounting Voucher Creation screen, select F8: Sales to create a sales
voucher
3. Select As Invoice mode
4. Enter the date and reference
5. Select the party to be credited from the list of Ledger Accounts and enter
Partys A/c Name
6. In the Party Details screen, check/modify details
7. Select Sales Ledger from the List of Ledger Accounts
8. Select the item from the List of Item in Name of Item
9. Enter the Quantity and the Rate to gate the amount in the amount field
10. Select the TCS ledger (Under Duties & Taxes) for sales
11. By default, the gross amount is displayed in TCS details in TCS Computation
screen. The gross amount can be changed if required.
12. Income Tax percentage can be changed if Allow Alteration of TCS Rate in
Sales Invoice Configuration is set to yes.
13. Enter new reference (New Ref) and Due Date, or Credit Days (By default, 7th of
following month).
Select any other expenses ledger, if applicable, from the list of Ledger Accounts
14. Enter narration, if required, and accept to save.
Payment of TCS in Tally

You can create entries for payment of TCS in a normal payment voucher and manually
pay TCS as shown here or you can create a TCS Payment voucher using the TCS Helper
button from the button bar. This is an automatic feature which allows payment of TCS for
all entries from a TCS ledger.
To create a TCS payment voucher manually
1. Gateway of Tally Accounting Vouchers
2. In the Accounting Voucher Creation screen select F5: Payment
3. Enter the date
4. Select and debit the TCS Ledger in Particulars from the List of Ledger
Accounts and enter the amount
5. In the Tax Details screen, select from List of TCS payable and enter the
amount
6. Select and credit the bank authorized to receive TCS in Particulars from the
List of Ledger accounts and enter the amount
7. Enter Narration, if required,
8. Print the TCS Challan, if required,
9. Accept to save
Printing TCS Challan

Print TCS Challans for a TCS payment voucher created manually or created usisng the
TCS Helper button.
To Print a TCS Challan
1. Press [Alt + P] or click on Print from the button bar in the Payment voucher
screen to view the voucher Printing screen
TCS Challanform
TCS Reports
TCS reports in Tally are extensive. Statutory reports are integrated, making it convenient
to print and file reports in government prescribed formats. Additionally, a wide of range
reports such as reconciliation reports and display reports are available. These reports
provide
Information at a glance and help in managing TCS issues with ease.
1.Gateway of Tally Display Statutory Reports TCS Reports
2. TCS Reports menu displays the Following options.
Fringe Benefit Tax

Enable FBT in Tally
F11: Features
You can enable Fringe Benefit Tax (FBT) by
using the F11: Features screen.
1. Gateway of Tally F11: Features
Statutory & Taxation
2. Set the option Enable Fringe Benefit Tax
(FBT) to Yes
3. Set Set/After FBT Details to Yes. The
Company FBT Assesse Details Sub form
appears as shoen.
Income Tax/PAN Number

If the income Tax/PAN Number is not entered in the Company Master, the same can be
entered F11: Features under Company FBT Assessee Details.
If the Income Tax/PAN Number is entered in the Company Master, it cannot be edited in
F11: Features under Company FBT Assessee details.
Assessee Type
Set the S\Assessee Type to which your company belongs to. This information is used to
calculate the Income Tax, Surcharge and Education Cess while computing FBT.
Note:
The option is Surcharge Applicable? Is applicable only if your Assessee Type is
Association of Persons/ Body of Individuals. On setting this field to Yes in the Company
FBT Assessee Details, the surcharge is calculated in FBT Computation Report.
For the Assessee Type Local Authority, the option is Surcharge Applicable? In not
applicable.
Assessee Category
Select the appropriate assessee Category from the list.
Create party ledger

Gateway of Tally Accounts Info Ledger Create
Create expense Ledger
Create Duties & Taxes Ledger
Vouchers and Transactions

Expenses due: F7 Journal voucher
Payment Voucher
FBT Payment
FBT Report
Gateway of Tally Display Statutory Report FBT Report
Tax Deducted at Source (TDS)

Tax Deducted at Source (TDS) in an indirect method of collecting income tax. Such
collection of tax has an effect at the source when income arises or accrues. The buyer
(deductor) deducts the tax from the payment made to the seller (deductee) and remits the
tax to the Income Tax Department within the stipulated time.
The buyers (Corporate and Non-Corporate) make payments (such as Salary, Rent, Interest
on securities, Dividends, Insurance Commission, Professional fees, Commission on
Lottery Tickets, etc) to the seller (Services) and deduct the requisite amount from such
payments towards tax. The buyer files the TDS returns containing details of the seller and
the bank, where the TDS amount is deposited to the Income Tax Department (ITD).
eTDS
The Income Tax Department has prescribed the formats for filing these returns
electronically, which the buyer does in a CD/floppy. The TDS functionality in Tally
supports the following features:
Simple and user-friendly.
Quick and easy to set up and use.
Accounting for tax on partial/ full payment of bills.
Flexibility for auto and manual calculation of TDS.
Complete tracking of each transaction from deduction to payment.
Challan management and printing for prompt and accurate filing of tax.
The Auto allocation feature prevents error-prone data entry and helps track the
transactions faster.
Form 16A management:
o Can be printed for a transactions
o Can be printed for a period
o Can be printed yearly
Allows multi-parly printing
Exporting of data in NSDL compliant TDS file format.
Electronic format (e-TDS return) with Form 26Q, Form 26, Form 27 and form
27A which will be validated by the utility, provided by the government.
Generates Form 16A, TDS Challan, and TDS Computation and TDS Payable
reports.
TDS in Tally 9.0

Enabling TDS in Tally
You can enable Tally TDS in F11: Features screen. The F11: Features button is available
in almost all screens of Tally. This screen helps you to activate the TDS feature.
Gateway of Tally F11: Features Statutory & Taxation
1. Set Enable TDS to Yes
2. Set/Alter TDS detail to Yes. You will see the advanced company
3. Set Enter TDS Dedicator Details to Yes will display the below dialog window
Tax Assessment Number

Enter the Tax Assessment Number (TAN) in this field. The Tax Assessment Number
(TAN) is a ten-digit alphanumeric number, issued by the Income Tax Department (ITD)
to the deductors.
Income Tax circle/Ward (TDS)

Enter the Income Tax Circle/Ward (TDS). Where the Company assessd.
Deductor Type
Select the Deductory Type (Government or Others) depending on whether your
organization is a Company or a Non Company.
Name of person responsible

Enter the name of the authorized person responsible to file the TDS returns of your
company.
Note: If Tally has a security feature enabled then this field is automatically filled with the user name.
Designation
Enter the designation of the authorized person filing the TDS returns.
Creating Tax Ledger

The Tax ledgers have to be created under the group Duties and Taxes. The group Duties
and Taxes is automatically used for calculation of tax. This Ledger holds the entire
automatic calculation for TDS tax deductions at the voucher entry level. It is internally
enabled to calculate the Tax.
The option to specify the tax Type is available only for ledgers under the group Duties
and Taxes.
The Tax ledger master screen can be reached by following the menu path:
Gateway of Tally Accounts Info Ledgers Create
Name
Enter the name of the Tax ledger
Under
Select the group as Duties and Taxes from the list. On the selection of group Duties and
Taxes, you will get the option to select type of Duty/Tax.
Type of Duty/Tax
Select TDS tax type from the list
Nature of Payment
Select the appropriate TDS Nature of Payment as statutorily applicable, given/ desired by
the Govt. e.g. Fees for Professional Or Technical Services. By default, Tally provides you
with a List of TDS Nature of Payment. You need to select the appropriate TDS Nature or
Payment from the list.
Note: Nature of Payment You will find different categories that come under the Tax Deduction. Select the
relevant TDS Nature of Payment from the List of TDS Nature of Payment that applies to your company.
Ignore TDS Exemption Limit

If the total transaction limit exceeds the actual limit you need to set the Ignore
TDS Exemption Limit field to Yes then the tax is not calculated up to exemption.
Accept the Ledger creation screen.
Creating Party Ledger

You need to create ledger for party/suppliers under the group Sundry Creditors for whom
TDS has to be calculated automatically by the system.
The options is TDS Applicable and the Deductee Type are available only for ledgers
under the group Sundry Creditors.
You can either Create/Alter a ledger to specify your TDS account details.
Gateway of Tally Accounts Info Ledgers Create
Name
Enter the name of the Party/Supplier, who provides to you.
Under
Select the group as Sundry Creditors from the list
Is TDS Applicable
Set Is TDS Applicable to Yes. This will open the Ledger Deductee Details sub-form.
Deductee Type
Select the Deductee Type from the list
Ignore Surcharge Exemption Limit
If Ignore Surcharge Exemption Limit is set to Yes then the exemption Limits will be
ignored.
Maintain balances bill-by-bill
By default this field is set to Yes for Sundry Creditors.
Mailing & Related Details
Enter the Mailing and Related Details like Name, Address, Pin Code and select the State
from the list, and enter the Income Tax and Sales Tax Number.
Similarly, you can create Ledgers that provide services to your company under Sundry
Creditors.
Note: If the party is a Non Resident then PIN Code, State and the Sales Tax Number fields are not
applicable
Voucher Entry
Booking for TDS Expenses
This voucher enables you to books the expenses directly and helps you to deduct the TDS
and pay the amount to the party for their services.
Select F7: Journal button to the right or press F7 to create a Journal Voucher.
Gateway of Tally Accounting Vouchers Journal Voucher
Or
Press F7 key at the Voucher Entry screen to make a Journal Voucher
This will open the Journal voucher creation screen.
1. Select Rent (under Indirect Expense) from the list in the Particulars column and
enter the Amount in the Debit column.
2. Select the Party from the list (Mohan) and the Amount appears automatically in
the Credit
3. Press Enter to view the Bill wise details sub form as displayed below:
a. Enter the Name
b. Select the TDS Ledger from the list to the right.
c. The Amount is automatically picked up by the system.
4. Accept the bill wise details sub form
5. Accept the screen to save the Journal voucher.
Note: Booking the TDS Expense can be done using the Purchase voucher available in default Tally.
TDS Deduction
TDS Deduction button is available in Journal Voucher screen. You can pass a Journal
voucher using this button to record all the Tax ledger transactions for a particular party
who provides services. The list of ledger accounts displays only those ledger accounts
enabled for the party selected.
Gateway of Tally Accounting Vouchers F7: Journal
Button from the button bar on the right- side of your screen the F7 key.
1. Selection TDS Deduction Button or Press Alt+S. you will get a list of TDS
Ledgers for the party selected
2. Select the TDS Party Ledger from the list
3. Select the TDS Ledger from the list (TDS on Technical Services). The system
calculates the Net TDS to deduct amount.
4. Select the TDS Applicable Bills from the list.
5. Accepting the TDS details sub form will post the Net TDS to Deduct amount in
the Debit column of the Journal Voucher screen. Press the Enter key to credit the
Tax Ledger (TDS on Rent). You may enter the New Reference Number for
identification and accept the screen to save the Journal Voucher.
Payment to a Party Ledger

The Entry for the Payment to a party ledger is the same as in default Tally.
1. Select the Party from the list.
2. Enter the Amount.
3. On entering the amount You will get the Bill wise details sub form. Select the
Agst Ref from the list of pending bills. Accept the Bill wise Details sub form.
4. Accepting the Bill wise sub form will display the screen shown below
5. Select the Bank or Cash from the list.
6. Accept the Payment voucher to save the entry.
Preparing TDS Challan

Gateway of Tally Accounting Vouchers Payment Voucher Or
1. Press F5 (payment Voucher) at the Voucher entry screen to make a payment
Voucher
2. Select Bank Account from the list (TDS Helper functionality in Tally gives you
tremendous flexibility to generate the payment vouchers, for any period and to
any deductee).
3. After entering all the fields in TDS filters sub form. Select the Account (Bank)
from the list.
4. Accept the Payment voucher screen to save the entry.
TDS Computation
The TDS Outstanding option in Tally TDS provides the users the facility to view all the
TDS Outstanding that is pending for payment.
Gateway of Tally Display Statement of Accounts TDS Outstanding

Particular column provides you with a list of Party and the TDS ledger names
Amount Paid/Payable Till Date column gives the total amount that has to be paid to the
party.
Tax Rate Displays the rate specified by the Income Tax department for the services
provided by the party.
Tax gives the total income tax amount calculated at the rate specified in the previous
column
Surcharge Rate displays the rate of additional levy on Income Tax
Surcharge provides the total surcharge value calculated at the rate specified in the
previous column
Addl. Surcharge (Cess) Rate displays the rate of additional levy on Income Tax and
Surcharge
Addl Surcharge gives you the additional surcharge value at the rate specified
Total TDS Amount display the total TDS amount
Less: TDS Deducted Till Date
Net TDS to Deduct provides the TDS amount that are not paid
Click on the Print button or use ALT+P to print the TDS Computation report. This
brings up the Printing TDS Computation configuration sub-form by which the user can
customize the appearance of the Ledger report.
TDS Payables
TDS Payable report gives you information on the status of TDS payable (Pending)
amounts for a particular TDS Ledger account.
Gateway of Tally Display Statements of Accounts TDS Outstanding TDS
Payables
The TDS Payable report provides the Outstanding for a Tax ledger accounts, e.g. TDS on
rent if you want to know the status a particular TDS Ledger, press Enter on the Ref. No.
Note: If you wish to know more details on the voucher drill down further by pressing Enter.
1.
2.
3.
4.
Date: Date of creation as entered in the Payment/ Journal/Purchase Voucher

RefNo: The payment Reference number
TDS ledger Name: TDS ledgers created under Duties and Taxes
Pending Amount: The Pending amount that needs to paid by your company to
the bank/party
5. Due on: The last date for the payment (Due date).
6. Overdue by days: The number of days passed from the date of payment.
TDS reports
Gateway of Tally Display Statutory Reports TDS Reports
TDS Form 16A
TDS Form 27A
Shortcuts
The shortcut keys appear in button names in the button bar (right side of the Tally
screen). You can either click the button from the button bar or press the relevant
function key or character underlined/double-underlined.
Function Key Combination

Windows
F1
F1
F1
(ALT+F1)
Functionality
To select a
company
To select the
Accounts
Button
To select the
Inventory
Availability
At all masters menu screen
To view the
detailed or
condensed
report
To select
Payroll
Vouchers to
alter
To change the
current date
almost all the Reports
At the Accounting Voucher creation and alteration

screen
At the Inventory/Payroll Voucher creation and
alteration screen
In
F1 (CTRL
+ F1)
F2
At the Accounting/Inventory voucher creation or

alteration screen.
At almost all screens in TALLY.ERP 9

At the F11: Features screen
F3
To select
company
inventory
features
To select the
company

At F11: Features screen
F4
F5
To select
Company
Statutory &
Taxation
features
To select the
Contra
voucher
To select the
Payment
At Accounting / Inventory Voucher creation and

alteration screen
alteration screen
F6
F7
F8
F8
(CTRL+F8)
F9
F9
(CTRL+F9)
F10
F10 (Ctrl +
F10)
F11
F12
voucher
To select the
Receipt
voucher
To select the
Journal
voucher
To select the
Sales voucher
To select the
Credit Note
voucher
To select the
Purchase
voucher
To select the
Debit Note
voucher
To select the
Reversing
Journal
voucher
To select the
Memorandum
voucher
To select the
Functions and
Features
screen
To select the
Configure
screen

alteration screen
alteration screen
alteration screen
alteration screen
alteration screen
alteration screen
alteration screen
At Accounting / Inventory / Payroll Voucher creation

and alteration screen
Special Key Combination

Windows
ALT + 2
Functionality
To Duplicate a voucher
Availability
At List of Vouchers creates a voucher
similar to the one where you positioned the
cursor and used this key combination
ALT + A
ALT + C
ALT + D
ALT + E
ALT + I
ALT + G
ALT + K
ALT + O
ALT + G
ALT + M
To Add a voucher
At List of Vouchers adds a voucher after

the one where you positioned the cursor
and used this key combination.
To Alter the column in

columnar report
To create a master at a
voucher screen (if it has
not been already assigned
a different function, as in
reports like Balance Sheet,
where it adds a new
column to the report)
Alters the column in all the reports which

can be viewed in columnar format
At voucher entry and alteration screens, at
a field where you have to select a master
from a list. If the necessary account has not
been created already, use this key
combination to create the master without
quitting from the voucher screen.
To access Auto Value

Calculator in the amount
field during voucher entry
To delete a voucher
At all voucher entry screens in the Amount

field
To delete a master
At Voucher and Master (Single) alteration

screens. Masters can be deleted subject to
conditions, as explained in the manual.
To delete a column in any

columnar report
All the reports screen which can be viewed

in columnar format
(if it has not been already

assigned a different
function, as explained
above)
To export the report in
ASCII, Excel, HTML OR
XML format
To insert a voucher
To toggle between Item

and Accounting invoice
To select the Language
Configuration
To select the Keyboard
Configuration
To upload the report at
your website
To select language for
TALLY.ERP 9 Interface
To Email the report
At all reports screens in TALLY.ERP 9
At List of Vouchers inserts a voucher

before the one where you positioned the
cursor and used this key combination.
At creation of sales and purchase invoice
At almost all screens of TALLY.ERP 9
ALT + N
CTRL + B
To view the report in

automatic columns
To print the report
To repeat the narration in
different voucher type
To bring back a line you
removed using ALT + R
To retrieve the last line
which is deleted using Alt
+R
From Invoice screen to
bring Stock Journal screen
To cancel a voucher in
Day Book/List of
Vouchers
To repeat the narration in
different voucher type
To accept a form
wherever you use this key
combination, that screen
or report gets accepted as
it is
To select the Budget
CTRL +
ALT + B
CTRL + C
To check the Company

Statutory details
To select the Cost Centre
ALT + P
ALT + R
ALT + S
ALT + U
ALT+ V
ALT + X
ALT + R
CTRL + A
To select the Cost

Category
CTRL+ E
To select the Currencies
CTRL + G
To select the Group
CTRL + H
To view the Support

Centre
At all the reports where columns can be

added
At all Vouchers in TALLY.ERP 9
At Invoice screen > Quantity Field > Press

Alt + V to select the Stock Journal.
At all voucher screens in TALLY.ERP 9
At almost all screens in TALLY.ERP 9.

At almost all screens in TALLY.ERP 9,
except where a specific detail has to be
given before accepting
At Groups/Ledgers/Cost Centres/
Budgets/Scenarios/Voucher Types/
Currencies (Accounts Info) creation and
alteration screen
At all the menu screens
alteration screen
At Stock Groups/ Stock Categories/ Stock
Items/ Reorder Levels/ Godowns/ Voucher
Types / Units of Measure ( Inventory Info)
creation/alteration screen
alteration screen
alteration screen
At Almost all screens in TALLY.ERP 9
CTRL + I
To select the Stock Items
Ctrl + Alt +
I
CTRL + K
CTRL + L
To import statutory
masters
To Login as Remote
Tally.NET User
To select the Ledger
CTRL + O
To mark a Voucher as
Optional
To select the Godowns
CTRL + Q
CTRL + R
CTRL + Alt
+R
CTRL + S
CTRL + U
CTRL + V
CTRL + K
CTRL + H
To abandon a form
wherever you use this key
combination, it quits that
screen without making any
changes to it.
To repeat narration in the
same voucher type
Rewrite data for a
Company
Allows you to alter Stock
Item master
To select the Units
To select the Voucher

Types
At Stock Group/ Stock Categories/ Stock

At all menu screens
At Almost all screens in TALLY.ERP 9
alteration screen
At the creation and alteration of Vouchers
At Stock Group/ Stock Categories/ Stock
At almost all screens in TALLY.ERP 9.
At creation/alteration of voucher screen

From Gateway of Tally screen
At Stock Voucher Report and Godown
Voucher Report
At Stock Groups/ Stock Categories/ Stock
alteration screen
To toggle between Invoice

and Voucher
To login to Control Centre
At creation of Sales/Purchase Voucher

screen
To access Support Centre.

Wherein you can directly
post your queries on the
functional and technical
aspects of Tally.ERP9,
Shoper and
Tally.Developer.
Alt + Enter
Alt + S
To view the Voucher

display
To view Stock Query
report
At Day Book and almost all Voucher

Reports
At all Voucher Creation and Alteration
screens where inventory is applicable
except Contra, Reversing Journal,
Memorandum and Physical Stock
Voucher
Special Function Key Combination

Windows
ALT + F1
Functionality
To close a company
Availability
At all menu screens
To view detailed
report
At almost all report screens

To explode a line into

its details
ALT + F2
ALT + F3
ALT + F4
ALT + F5
ALT + F6
ALT + F7
To select Inventory
vouchers to alter
To change the period
To select the
company info menu
To create/alter/shut a
Company
To select the
Purchase Order
Voucher Type
To select the Sales
Order Voucher Type
To view monthly and
quarterly report
To select the
Rejection Out
Voucher Type
To change the Sales
Order Voucher Type
To select the Stock
At the Inventory/ Payroll voucher creation or

alteration screen.

At Gateway of Tally screen
At Accounting / Inventory Voucher creation

and alteration screens
At almost all report screens in TALLY.ERP 9
Journal Voucher
Type

At Tally Audit Listing screen
ALT + F8
To accept all the

Audit lists
To select the
Delivery Note
Voucher Type

At Ledger Voucher screen
ALT + F9
ALT + F10
ALT + F12
Ctrl + F1
CTRL + ALT
+ F12
To view the
Columnar report
To select the Receipt
Note Voucher Type
To select the Physical
Stock Voucher Type
To filter the
information based on
monetary value
To select payroll
vouchers for
alteration
Advanced
Configuration

At almost all report screens
At the Accounting/Inventory Voucher

creation or alteration screen
At Gateway of Tally
Key Combination Used for Navigation

Windows
PgUp
PgDn
ENTER
ESC
Functionality
Display previous voucher
during voucher entry/alter
Display next voucher during
voucher entry/alter
To accept anything you type
into a field.
Availability
At voucher entry and alteration screens
To accept a voucher or
master
At the receivables report press Enter

at a pending bill to get transactions
relating to this bill (e.g., original sale
bill, receipts and payments against this
bill, etc)
To get a report with further

details of an item in a report
To remove what you typed
into a field

You have to use this key at most areas
in TALLY.ERP 9
To come out of a screen
SHIFT +
ENTER
SHIFT +
ENTER
To indicate you do not want

to accept a voucher or
master
Collapse next level details
To explode a line into its
details
At Voucher Register screen and Trial

Balance report
In almost all Reports:
At a Group/Stock Group/Cost
Category/Godowns /Stock Category
displays Sub Groups and Ledgers/Stock
Items/Cost Centres/Secondary
Godowns/Secondary Stock Categories
At a Voucher displays its entries and
narration
At a Stock Item- displays its godowns
and batch details
At Voucher Register screen displays
the next level details
CTRL +
ENTER
To alter a master while

making an entry or viewing
a report
At Trial Balance report - displays the

next level details
At all reports

Accounting Voucher Types

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Accounting Voucher Types

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Accounting Vouchers

Types of voucher (Conventional):

Selection of Voucher at the time of transaction:

Contra Voucher (F4)

Payment Voucher (F5)

Receipt Voucher (F6)

Journal Voucher (F7)

Sales Voucher (F8)

Purchases Voucher (F9)

Debit Note (Ctrl+F9)

Credit Note (Ctrl+F10)

Types of vouchers (Unconventional)

Use of optional vouchers

Set Include Actual to Yes

Alter or Display Scenario information

Using Scenarios in Statements and Reports

The main voucher entry area

Direct commands area

Special Keys for Voucher Narration Field

Contra Entry (F4):

Payment Entry (F5):

Receipt Entry (F6):

Journal Entry (F7):

Sales Entry (F8):

Credit Note (Ctrl+F8)

Purchases Entry (F9)

Debit Note (Ctrl+F9)

match the figure of Trial Balance 6,61,125.

Advance Accounting Features [F11]

Advance Accounting Features [F11]

Income/Expense Stmt instead of P&L

You must first activate multi-currency capabilities.

Advance Accounting Features [F11]

Date for Rates

: Rates of Exchange operate on day-to-day basis. Hence, you can specify

Note: the date column in the previous alter screen.

: The standard rate is used to calculate variances from the actual

Multi Currency in Voucher

Debit Note/ Credit Note

: Since you are giving

Advance Accounting Features [F11]

entered as Against Reference which reduces the outstanding amount to

Display Report Interest on Outstanding Balances

Advance Accounting Features [F11]

Budget for Groups

Budget for Ledger Accounts

Name for the Budget

Advance Accounting Features [F11]

Cost Categories (For advanced usage only)

Use of Cost Categories

Enable Cheque Printing

Company Name on Cheque:

Advance Accounting Features [F11]

Allow Zero Valued Entries

Budget variance Rs. 22,190 (63.40%)

Voucher Types & Class

How To Manage And Operate Voucher Types

Create a Voucher Type

Voucher Type & Class

you can also give fixed suffix information for the

Use common narration

Voucher Classes for Payment, Receipt and Contra Vouchers