TALLY ERP

Tally is a Financial Accounting Software Package. It’s introduced on 1980, Mr.

Bharath Goyank is the father of Tally. Tally solution private limited updates the Tally
Software. The old versions of Tally are 3.6, 6.3, 5.4, 5, 5.7 and 6.

The present version of Tally is “Tally ERP 9”.

Tally is very popular than other Accounting Software packages.
For example: DACY, EASY, WINGS.
ERP Means “ENTERPRENEUR RESOURCE PROGRAM”.
Tally is used to maintain the day to day transactions of a Business like purchase, sales,
receipts, payments and banking transactions like deposits, withdraw and transfers.

FEATURES OF TALLY
1. Simplicity: i)) It is simple, easy to setup and use.
ii) It also allows easy keyboard operations.
iii) It requires basic knowledge of accounts and English to use it.

2. Audit Facility: i) Using this facility you can check the recorded transactions.
ii) And make modification as per requirements.

3. Budgeting: Always you to analyze the variances for expenses & incomes.

4. Accounting without Codes: Tally ERP9 allows accounting with the

regular names without any account codes.

5. Online Help: Tally ERP9 online help (Alt+H) provides instant a assistance
on basic & advanced features or any other relevant topics of Tally ERP9.

6. Remote Access: Tally ERP9 provides remote capabilities to access the data
from anywhere and anytime.

7. Power: Tally ERP9 allows the user to maintain multiple companies

with unlimited levels of classification & grouping capabilities.

8. Real time Processing: Immediate posting & updating of books of accounts

as soon as transactions are entered, thereby facilitating instant statements &
reports.

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9. Flexibility: i) Tally ERP is very flexible and easy to use it.
ii) It is very flexible it minimizes the human throughout process.
iii) Which means that Tally ERP9 can adopt to any business need.

10. Speed: It has the capability o generate instant & accurate reports.

ACCOUNTING
Accounting is an art of a business. It communicates the rules of business
operations in various parties like proprietor, partnership concerns, investors, private
com, public com, a joint venture com, Govt. agency etc.
Branches of Accounting

1. Financial Accounting 2. Management Accounting

1. Financial Accounting: It’s refers to the financial statements like P& L

a/c, Business financial reports, graphs, ratios etc for the use of outsiders.
2. Management Accounting: Here the accounting is based on the accounts which
provide important information to the management & planning & control of the
business.
Methods of Accounting
1. Single Entry System: It is purely based on cash accounting. Only cash
transactions are taken and credit transactions are eliminated.
2. Double Entry System: It is both cash and credit transactions are entered. All
commercial organizations follow this method. Tally follows Double Entry
System of accounting.

Nature of Accounts
1. Recording (Book Keeping)
2. Classifying (Ledger Making)
3. Summarizing (Trial Balance, Balance Sheet)
4. Dealing with Financial transaction
5. Analyzing and interpreting
6. Communicating.

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CLASSIFICATION OF ACCOUNTS
TYPES OF ACCOUNTS

Personal Account Real Account Nominal Account

1. Personal Account: Personal Accounts are accounts which related to persons.

Personal a/c includes the following: Suppliers, Customers, and Lenders.
2. Real Account: Real Accounts are accounts relating to assets and properties
which are owned by the business (including TA & DA).
Example: Building, Land, Goodwill, Copyright etc.
3. Nominal Account: Nominal Accounts are accounts which related to all
incomes and expenses, all gains and losses of a business concern.

The Nature Accounting Rules

Sl.No. Nature of A/c Debit Credit
01 Real Account What Comes in What goes out
02 Personal Account Received Giver
03 Nominal Account All Expenses & All Incomes &
Losses Gain

Principle
Accountin & Connections
g s

Concepts
The Accounting P, C&C form the basis of how business transactions
are recorded Matching Concept
Accurate
Going
concern
Accounting period
Money Measurement

Basement of Tally:1.Accounts
2.Transactions
3.Cash/Goods
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JOURNAL: A Journal is a record in which all business transactions are entered in a
chronological order.
A record of a single business transaction is called a Journal Entry.
LEDGER: A Ledger is a book which contains all the accounts whether Personal, Real
or Nominal which are entered in Journal/Subsidiary books.
ACCOUNT: An Account is a statement of transactions affecting any particular asset,
liability, expenses/incomes.
TRIAL BALANCE: Trial Balance is a statement which shows debit and credit
balances of all ledger accounts.
A detailed Trial Balance has columns
for: Account Name
Debit Balance
Credit
Balance
TRIAL BALANCE
Particular Dr. Cr.
s
A. a. Capital Xx
b. Incomes
Direct X
Incomes x
Indirect Incomes X
c. Current Liability x
d. Loan Liability X
x
xx

B. a. Fixed Asset Xx
b. Expenses
Direct Expenses X
Indirect Expenses x
c. Current Assets X
x
x
x
xx xx

FINANCIAL STATEMENT: Financial Statements are final result of accounting

work done during the accounting period.
Trading Account
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It Includes Profit & Loss
Account Balance
Sheet

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1. Trading Account: Trading refers to buying and selling of goods. The trading
account indicates either grass profit or gross loss.
2. Profit & Loss Account: The profit & loss account helps to ascertain the net
profit earned/net loss suffered during a particular period.
3. Balance Sheet: The balance sheet is a statement that summarize the assets &
liabilities of a business.
The Balance sheet helps to assessing
A com’s long term financial strength
A com’s efficient day to day working capital management
A com’s sustainable long term performance
Draw / Make a diagram

CAPITAL: Capital refers to the amount of money or money’s worth (goods/assets)

invested by the owner in the business.
ASSETS: Assets are economic resources of an Enterprise.
Fixed Assets Current Assets
1.Land & Building 1.Short term investment
2.Plant & Machinery 2.Closing Stock
3.Vehicles 3.Sundry Debtor
4.Furnitures 4.Bills Receivables
5.Goodwill 5.Cash @ bank
6.Copyright 6.Cash in hand
7.Patents 7.Prepaid exp
8.Loose tools 8.Outstanding incomes.

LIABILITIES: It means which has to be definitely fulfilling feature at present.

Liabilities mean claims of outsiders against a business concern.

Capital Current Liabilities

 Income received in advance
Fixed Liabilities  Outstanding exp
 Long-term loans  Sundry Creditors
 Long-term deposits  Bill payable
 BOD
 Short-term loans.

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BALANCE SHEET
Liabilities ` Assets `
Capital xx Fixed Asset xx
Current xx Current Asset xx
Liabilities
Loan Liabilities xx
(Profit) (Loss)
xx xx

xx xx

DEBTOR: A Debtor is a person who owes money to the business. Because he has
received some benefits from the business.

CREDITOR: A Creditor is a person to whom the business owes money. Because he has
given some benefits to the business.
PURCHASE: Goods purchased by a business for production/sale are called Purchases.

SALES: Goods sold by the business are called Sales.

STOCK: Stock means the value of unsold goods and unused materials in a concern at
the end of the year (Closing Stock).

INCOMES: After rendering a services, a person is eligible to take some benefits from
any source is called Income. Two types :1.Direct Income 2. Indirect Income.

EXPENSES: Spending money or money’s worth for some benefits is called Expenses.
Two Types: 1. Direct Expenses 2. Indirect Expenses.
ASSETS: Two Types of Assets
1. Tangible: We can touch & see. Eg: Cash in Hand, Cash at Bank, CA,BR etc.
2. Intangible: We can’t touch & see. Eg: Goodwill, copyright, Trademark etc.

GROUPS: Groups are collection of ledgers which have similar transactions.

Based on accounting principles, Tally provides a set of ‘28’ pre-defined groups.
a. Primary Groups 15

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b. Sub Groups 13

Primary Groups Sub

Groups
1.Capital Account 1.Reserves & Surplus
1.Bank a/c
2.Cash in
hand
2. Current Assets Account
3.Deposits
4.Loans &
advances 5.Stock in
hand
6.Sundry Debtors
1.Duties &
3.Current Liabilities Account taxes
2.Provisions
3.Sundry Creditors
4.Fixed Assets Account
5.Investments Account
1.Bank OD
6.Loans Account Account 2.Secured
loans
3.Unsucured loans
7.Suspense Account
8.Miscellaneous Account
9.Sales Account
10.Purchase Account
11.Direct Expense Account
12.Indirect Expense Account
13.Direct Income Account
14.Indirect Income Account
15.Branch/Division

 Tally automatically creates two ledgers accounts when a company created

1. Cash account (under the group cash-in-hand)
2. Profit & Loss account (Direct primary account)

1. Capital Account: It means investing the personal money into his own/others
company.
a.Reserves & surplus: Sub group of Capital account.
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2. Current Assets A/c: Asset Resource of the company.

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Fixed Asset: It means things used for long term.
Ex: Vehicles, Machinery, Building etc.
Current Asset: It means things used for short term.
Ex: Cash, Bank, Stock etc.
a.Bank A/c: All Bank a/c like Current, savings account.
Salar
y
Rent
Paid Interest Received
F5 Payment Commission F6 Receipt
Expenses Electric bill Incomes
Dr. etc. Cr.

Indirect

Wages
Unloading
Paid Fuel Received
F5 Payment Fright Charges F6 Receipt
Expenses Repair Charges Incomes
Dr. etc. Cr.

Direct

VOUCHER ENTRY: A voucher is a basic recording document day to day transactions

entered in tally through voucher.
It is a key to all business information entering the transactions
through voucher is called creating a Voucher entry.

Function Key’s Working in Tally

Key Functio
n
F1 Select Company
Alt+F1 Details
F2 Change the Date
Alt+F2 Change the Period

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F3
Alt+F3 Company Info
Contra: This voucher is used to specially bank transactions
F4
Ex: Deposited, Withdraw, Transfer etc.
F5 Payment Voucher
F6 Receipt Voucher
Journal: This voucher is an adjustment voucher.
F7
It is used for enter all non-cash transactions.
Manufacturing Journal: It is used to enter the manufacturing details better
Alt+F7 to use M expenses can be entered it & effective
rate per unit of item, M can be identified.
F8 Sales
(Sales Returns) Credit Note: This voucher is used to maintain the sales &
Ctrl+F
sales returns transactions (cash/credit)
8
F9 Purchase
Ctrl+F (Purchase Returns) Debit Note
9
Reversing Journal (accounting reports)
F10 Reversing Journals are special journals that are automatically
reversed after the date of Journal.
Memorandum Voucher: This is purely a non-accounting voucher, i.e. the
entries in this voucher do not affect the accounts
because these entries are not posted to ledger and
+F10
they do not affect the final result of the company.
Tally stores memo vouchers in a separate register
called ‘Memo Register.’
F11 Company Features
F12 Company Configuration & Tally setup wizard.
Stock Journal: It is used to transfer of materials. It allows to make the entry
of items moved the entry of items moved from one
Alt+F7
godown to another, without affecting the financial
accounts.

CONTROL & ALT KEYS IN TALLY

Ctrl +N Calculation On
Ctrl+M Calculation Of
Ctrl+A Direct accept

Alt+C Auto value calculates & secondary creation

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Alt+I Sub or secondary voucher creation

VOUCHER TYPES

Accounting Voucher Inventory Voucher

 ACCOUNTING VOUCHER:
1. Contra Voucher F4
2. Payment Voucher F5
3. Receipt Voucher F6
4. Journal Voucher F7
5. Sales Voucher F8
6. Credit Note Voucher Ctrl+F8
7. Purchase Voucher F9
8. Debit Note Voucher Ctrl+F9
9. Reversing Journal F10
10.Memorandum Voucher
Ctrl+F10

 INVENTORY VOUCHER:
1. Purchase Order Alt+F4
2. Purchase Quote Ctrl+F4
3. Sales Order Alt+F5
4. Sales Quote Ctrl+F5
5. Rejection Out Alt+F6
6. Rejection In Ctrl+F6
7. Stock Journal Alt+F7
8. Delivery Note Alt+F8
9. Receipt Note Alt+F9
10.Physical Stock Voucher
Alt+F10

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FINANCIAL INVENTORY

Debit Credit Debit Credit

Receiver Giver Buyer Supplier

Key Combination Used for Navigation

Page Up Display Previous Voucher
Page down Display Next Voucher
Enter Accept a Voucher / Master

Esc To Come out of a Screen

How to Create Company, Alter Company, Shut a Company, Select a Company

Gateway of
Tally Company
Info

Create Select Alter Shut

How to Create Groups/Ledgers, Display, Alter a

Group/Ledger

Gateway of
Tally Accounts
Info Groups /

Ledgers

Create Select Alter Shut

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Balance Sheet
Gateway of
Tally Reports

Balance Sheet

Profit & Loss Account

Gateway of
Tally Reports

Profit & Loss Account

Trial Balance

Gateway of
Tally Display

Trial Balance

Key Function
s
Alt+2 To Duplicate a Voucher
Alt+A To add a Voucher
Alt+C To Create Master
Alt+D To Delete a Voucher
Alt+E To Export the report
Alt+I To Insert a Voucher
Alt+G Language Configuration
Alt+K Keyboard Configuration
Alt+O To upload the report to website
Alt+G Language for Tally ERP9 interface
Alt+M Email the report
Alt+N To view the report in automatic columns

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Alt+P To print the report
Alt+R To remove a line in a report
Alt+S To bring back a line you removed using Alt+R
Alt+U To retrieve the last line which is deleted using Alt+R
Alt+V To from invoice screen to bring stock Journal screen
Alt+X To cancel a voucher in day book / list of voucher
Alt+R To Register Tally ERP9

Ctrl+A To accept form

Ctrl+B To select the budget
Ctrl+C To select cost category
Ctrl+E To select Currency
Ctrl+G To select Group
Ctrl+H To view the support centre
Ctrl+I To view the stock items
Ctrl+K To loging as remote Tally NET user
Ctrl+L To loging as ledger
Ctrl+O To loging as godowns
Ctrl+Q To quit the screen
Ctrl+R To repeat narration in the same voucher type
Ctrl+S To allows you to alter stock item master
Ctrl+U To select the units
Ctrl+V To select the voucher type
Ctrl+K To loging to control centre
Ctrl+H
Ctrl+S To view stock query reports

Alt+Enter To view the Voucher display

Ctrl+Alt+ Re-write data for a company
R
To select the cost centre
Ctrl+Alt+
To check the company statutory
B

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Key Function
s
To close a company
Alt+F1 To view the detailed reports
To explode a line into its details
To select inventory
Alt+F2 To change the period
To select the company info menu
Alt+F3
To Create, alter & shut a company
Alt+F4 To select the purchase order voucher type
To select the sales order voucher type
Alt+F5
To view monthly & quarterly report
To select the rejection out voucher
Alt+F6
To change the sales order voucher
To select the stock journal voucher
Alt+F7
To accept all the audit list
To select delivery note voucher
Alt+F8
To view the columnar report
Alt+F9 To select receipt note voucher
Alt+F10 To select physical stock voucher
Alt+F2 To filter the information based on monitory value.

Ctrl+F1 To select Payroll voucher for alteration

Ctrl+Alt+F To select Advanced configuration
2

PRE-DEFINED VOUCHERS IN TALLY ERP9

Contra Payment Receipt Journal

Sales Credit Note

Purchase Debit Note

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1. Salary
2. Rent
3. Interest
4. Commission
5. Repair & Maintenance
6. Travelling Convenience
7. Bank Charges
8. Overheads
9. Staff Welfare expenses
10. Postal Charges
11. Telephone Bill
12. Electric bill
13. Paper (Newspaper) bill
14. Internet Charges
15. Administrative Charges
16. Management Charges
17. Advertisement Charges
18. Employees Provident Fund
19. Employees / Staff Welfare Fund

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ACCOUNTS WITH INVENTORY
This is the default option which allows maintaining both financial accounts and
inventory of the company in the case closing stock figures will be calculated
automatically.
Gateway of
Tally Inventory
Info

*Stock Group *Godowns/Locations *Stock

Items Create Create Create

Display Display Display
Alter Alter Alter
*Stock Categories *Unit of Measures

Create Create
Display Display
Alter Alter

Inventory Accounting includes recording of stock details like the purchase of

stock, sale of stock, stock movement between storage locations or godowns &
providing information on stock availability.
Company setup for inventory at company creation, select accounts with
inventory in maintain fields.
Basic Inventory Matters
1. Stock Groups
2. Stock Categories
3. Godowns / Location
4. Unit of Measure
5. Stock Items.

1. Stock Groups: Stock groups are provided to help in the classification of

stock items, classification is done based on some common
behavior. Ex: Provisions, Electronic goods, Stationery.

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2. Stock Categories: This is a feature, which offers a parallel classification of
stock items.
Ex: 29 Inches TV, 40 Volts Bulb.
3. Godowns / Location: A place where stock items are stored is referred to as
godowns.
Ex: Tumkur, Bangalore, Mysore
4. Units of Measure: Stock items are mainly purchased & sold on the basis
of quality, the quantity in turn is measured by units.
Ex: Symbol Name: K.g.
Formal Name: Kilogram
5. Stock Items: Stock items are goods that you manufacture or trade.
It is the primary inventory entity.
Ex: Rice, Sugar, TV, Refrigerators etc.
DAY BOOK: Day book is used to display the voucher entered. It useful to see you can
verify whether the voucher is entered correctly or not and also is
corrected.
*OPENING STOCK: Unsold goods lying in a business at the starting of the any given
period is called Opening Stock.
*CLOSING STOCK: Unsold goods laying a business at the end of the any given period
is called Closing Stock.

*STOCK: Unsold goods lying in a business at any given period is called as Stock.

*VOUCHER: A voucher is a supporting document for Financial Transactions.

*DRAWINGS: It refers to cash/goods withdrawn by the proprietor for his personal use
from the business (Capital).

*LOSS: It refers to money worth given up without any benefit in return.

*PURCHASE: Goods purchased by a business are called Purchase or buying goods to

the business transactions. Purchase is made by cash/credit also.

*CASH PURCHASE: It means Purchase of goods by giving cash payment at the

same time.

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*CREDIT PURCHASE: It means purchase of goods by postponing the payment of
cash to future.

*PURCHASE RETURN: Purchase return is a return of goods due to defect in goods.

*SALES: Goods sold by the business are called sales or sales are the main
transaction of the company by the use of sales we get the profit from the
sold of goods for a specific amount.
*CASH SALES: It means sale of goods for the cash received at the same time.
*CREDIT SALES: It means sales of goods on credit or sale of goods without
receiving cash at the same time.
*SALES RETURN: Sales return is a return of goods by sales due to defect in goods.

*NOTE
: PURCHAE ON
F9 Mr. VCREDIT
a/c Purchase a/c
F5 Mr. V a/c (Cr) Sundry Creditor

SALES ON
F8 CREDIT
Mrs. B a/c Sales a/c
F6 Mrs. B a/c (Cr) Sundry Debtor

Purchase Return A/c Sales A/c

Sales Return A/c Purchase
A/c
Gateway of
Tally Inventory
Info Voucher
Type

Name: Purchase Return a/c or Sales Return a/c

Under: Sales a/c Purchase a/c

Accept: Yes Accept: Yes

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