T A L LY P R I M E

Tally Prime is complete business management software for small and medium business. Tally
Prime helps you manage accounting, inventory, banking, taxation, banking, payroll and much
more to get rid of complexities, and in turn, focus on business growth.

This platform is the new-age business management software from the house of Tally which is
sure to delight you. Simplicity, speed, flexibility, and reliability are a trademark of Tally
products and with Tally Prime you will experience them at a whole new level.

Tally Solutions is a Bangalore-based company that was co-founded by Mr. Shyam Sunder
Goenka and Mr. Bharat Goenka in the year 1986.

Versions of Tally

Tally 4.5: The first version, released in 1990.

Tally 5.4: Released in 1996, introduced a graphical user interface.
Tally 6.3: Released in 2001, a Windows-based version.
Tally 7.2: Released in 2005.
Tally 8.1: Released with a new data structure.
Tally 9: Released in 2006.
Tally ERP 9: The current and most widely used version, released in 2009.
TallyPrime 1.0
TallyPrime 1.1
TallyPrime 2.0
TallyPrime 2.1
TallyPrime 3.0
TallyPrime 4.0
TallyPrime 4.1
TallyPrime 5.0

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Tally software has two types of classifications based on the number of users:
single user and multi-user

Single user
The Silver edition is a single-user license that allows only one user to access the license at a
time.

Multi-user
The Gold edition is a multi-user license that allows multiple users to access the license at the
same time. Tally Prime Server can be used along with Tally Prime to manage the concurrent
usage of company data.

Company Creation

The first time we start Tally would require creating a company. Creating a company simply means
giving basic information about the company.

Step to Create a Company in Tally

Gateway of Tally -F3 Company - Create Company or Company Menu (Alt+K) - Create
Press F12 (Configure)
Provide Contact Details: Yes
Use Tally Vault Password to encrypt company Data: Yes
Use User Access Control: Yes
Provide Additional Base Currency Details: Yes

Enter here the Company name, address, state, financial year, books beginning date, security
control, currency details etc.

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Tally Vault Password
It is used for hiding the company name from the list of created companies. If we use the Tally Vault,
instead of company name few asterisks (*****) would be shown in the list of companies. A company
must be identified by the company number on shut company.

Security Control
Security is one of the major concerns for computer systems. Password Protection is a common method
of computer security. An authorized person (administrator)assigns a secret word (called password)
which then becomes necessary to perform the specified computer operation. Any person, who does not
know password, cannot get to open company.
After Company Creation then open company Features window, if we want make changes activate the
features otherwise Press Esc (Escape) button.

To get more features activate this option Show more Features: Yes
Show all Features: Yes

Then activate the features that we want

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Company Menu (Alt+K)

Create
To create a new company.

Alter
To modify a company

Change F3
If we opened many companies, from the list select a company.

Select Alt+F3
To open a company

Shut Ctrl+F3
To Close opened Company

Delete Company

Company Menu - Alter - Enter - Select Company Name- Enter- Press Alt+D
There is a confirmation message came Press Enter, again another message came Press Enter

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Ledger creation
In a manual bookkeeping system, a book containing each page of the account can be placed on each
page of the ledger. It is very important for voucher entries. When we create a company in Tally by
default, two ledger accounts are created.
• Profit and Loss (Primary)
• Cash (Cash-In-Hand)

Step to Create ledger in Tally

Single Ledger Creation

Gateway of Tally - Create - Ledger

Name: Type Ledger name a/c

Alias: I f we want to give some other names type it or just enter.

Under: The list of groups will be displayed at the right side of the screen, select the group and enter.

Opening Balance: Type opening amount

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Name of account Under (Group) Name of account Under (Group)
Capital Capital account Service Direct Income
Drawing Capital account Commission received Indirect Income
Purchase Purchase account Interest received Indirect Income
Purchase return Purchase account Discount received Indirect Income
Sales Sales account Rent received Indirect Income
Sales return Sales account Appreciation Indirect Income
Bank Bank account Land Fixed asset
Bank overdraft Bank o/d Furniture Fixed asset
Cash (page up) Cash in hand Computer Fixed asset
Profit & loss a/c (page up) Primary Machinery Fixed asset
Sundry creditors Sundry creditors Building Fixed asset
Sundry debtors Sundry debtors Vehicles Fixed asset
All taxes Duties & taxes Business premises Current asset
Salary Indirect expense Bills receivable Current asset
Bonus Indirect expense Pre-paid expenses Current asset
TA Indirect expense Accrued income Current asset
Commission paid Indirect expense Loan Loan (liability)
Rent paid Indirect expense Bills payable Current liability
Advertisement charge Indirect expense Outstanding expenses Current liability
Bank charge Indirect expense Unearned income Current liability
Discount allowed Indirect expense Tax payable Current liability
Interest on loan Indirect expense Short term loan Current liability
Food and accommodation Indirect expense Investment Investment
General expense Indirect expense Petty cash Cash in hand
Sundry expense Indirect expense Interest on drawing Indirect income
Printing & stationary Indirect expense Royalty received Indirect income
Loss on goods Indirect expense Loan to person Loans and
advance
Legal charge Indirect expense Wage Direct expense
Interest on capital Indirect expense Carriage inward Direct expense
Electricity charge Indirect expense Loading & unloading Direct expense
Phone bill Indirect expense Freight charge Direct expense
Trade expense Indirect expense Customs duty Direct expense
Traveling expense Indirect expense Import duty Direct expense
Conveyance charge Indirect expense Manufacturing expenses Direct expense
Carriage outward Indirect expense Factory rent Direct expense
Depreciation Indirect expense Factory electricity charge Direct expense
Bad debt Indirect expense Factory lighting charge Direct expense
Loss on asset Indirect expense Packing charge Direct expense
Postage charge Indirect expense Provident Fund Current liability

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Multiple L e d g e r Creation

Gateway of Tally - Chart of Accounts -Ledger -Multi-Masters (Alt+H) -Multi Create

Display L e d g e r

Gateway of Tally - Chart of Accounts - Ledger -View (F5) or Change View (Ctrl +H)

Alter L e d g e r

Gateway of Tally - Alter -Ledger

Select the ledger from the list and enter. Then the ledger will be displayed, then make the necessary
changes then save it.

Delete l e d g e r

Gateway of Tally - Alter - Ledger

Select the Ledger that we want to delete then press Alt+D

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Vouchers In Tally

Contra F4

This voucher is used to cash and Bank transactions like cash deposit, cash withdraw, cash transfer and
bank transfer.

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Payment F5

This voucher records all the payments made through cash and bank.

E.g.: Cash or cheque paid to creditors, Expenses Paid, Drawings, Fixed asset, Stationary Purchase by
cash and cheque.

Receipt F6

This voucher records all receipts through bank and cash.

E.g.: Capital Introduce, Other Incomes, Cash or Cheque received from debtor and sales of fixed
assets through cash/cheque.

Journal F7

In this voucher only those transaction is passed which are not related to cash and bank, that is this
voucher used for to record adjustment transaction.

E.g.: Depreciation, Appreciation, Outstanding Expense, Prepaid Expense, Accrued Incomes, Unearned
Incomes, Fixed Asset purchased for credit and bad debts write off.

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Sales F8

This voucher records cash and credit sales transactions.

Purchase F9

This voucher records cash and credit purchase transactions.

Purchase and sales voucher can change the format of inventory transaction as invoice (bill) by pressing
Ctrl+H (Change Mode).

Item Invoice: Product Purchase/Sale mode

Accounting Invoice: Service Purchase/Sale mode

As Voucher: - Journal Entry mode

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Purchase Returns& Sales Returns

Gateway of Tally -Vouchers - Other Vouchers (F10)

Purchase return or Debit note voucher (Alt+F5)

This voucher is useful in case of return outward (purchase return) to damaged goods to the supplier.

Sales return or Credit note voucher (Alt+F6)

This voucher is useful in case of return inward (Sales return) damaged goods from the Customer or
goods by the customer due to incorrect supply.

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Method of bill Adjustments

Features(F11)

Accounting Maintain Accounts: Yes

Enable Bill wise Entry: Yes

For keeping and adjusting the pending bills of sundry creditors and debtors. At the time of creditors &
Debtors creation
Maintain balances bill by bill –Yes Configuration (F12)

Maintain balances bill by bill: Yes

Advance: - Advance payment to creditors or receive from Debtors related to future purchase or sales.

Agst Ref: - For Adjusting previous pending bills of debtors and creditors. Apply to Payment, Receipt,
Purchase Return and Sales Returns.

New Ref: -For recording a new credit bill. Apply to every credit purchase and credit sales.

On Account: - For recording a new credit bill of creditors or debtors where the invoice number not
recorded.

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Assignment – 01

Ledger Work

ABC Traders

Financial year 1.4.2023 to 31.3.2024

Particular Debit Credit

Capital 36,000
Drawing 12,000
Opening stock 30,000
Trade expenses 775
Salaries 5,700
Advertisement 420
Discount Allowed 550
Bad debt 350
Business premises 6,000
furniture 5,600
Cash in hand 1,130
Purchase return 2,400
purchase 74,000
Sales return 1,700
Sales 1,23,000
Wage 3,500
Conveyance charge 600
Rent & rates 1,860
insurance 1,000
interest 215
Plant & machinery 9000
Sundry debtors 47,000
Bank overdraft 12,000
Sundry creditors 28,000
Total 2,01,400 2,01,400

Closing Stock: 12,000

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Assignment – 02

Voucher Work

ABC Traders
Financial year 1-4-2023 to 31.3.2024

1. Commenced business with capital by cash ₹ 500000

2. Cash deposited to SBT bank ₹ 5000
3. Commission paid ₹500
4. Salary paid ₹1000
5. Travelling paid ₹250
6. Wage paid ₹500
7. Audit fee paid ₹5000
8. Purchased furniture from Raju on credit ₹5200
9. Purchased computer ₹15000
10. Cash paid to Raju ₹5200
11. Rent paid ₹1000
12. Sold furniture on credit to Babu ₹6000
13. Sold computer ₹14000
14. Cash received from babu ₹6000
15. Electricity charge ₹5000
16. Cash withdrew for personal use ₹5000
17. Cash withdrew for office use ₹500
18. Purchase packing materials ₹500
19. Carriage inward ₹500
20. Carriage outwards ₹1000

Product / Items Creation

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Gateway of Tally - Create - S t o c k Items

In Features (F11)

Maintain Inventory: Yes, In Configure (F12) activate the options

Show more configurations: Yes

Inventory Details
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Use Stock Group for Stock Items : Yes
Provide Units of Measurement (UoM) for Stock Items: Yes
Use Alternative Units : Yes
Provide Standard Buying and Selling Rates: Yes
Provide Opening Balance for Stock Items: Yes

Name: - Type the Name of item.

Alias: - Give any other name or just enter.

Under: -Give different product group by creating Alt+C.

Units: - Give Measurement (Sales unit) by creating Alt+C. (Nos, Mtr, Kg, Ltr)

Alt Units: - Give Alternative (Purchase unit) units by creating Alt+C.

Set Standard Rates: - To set product purchase Prices & Selling Prices.

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Opening Balance

Enter the details i.e. quantity, rate and value of the stock present with you.

Quantity- Give quantity on hand.

Rate- Product purchase price.

Stock Report

Gateway of Tally- Stock Summery

Assignment – 03

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Stock Items Work

ABC Traders

Financial year 1.4.2023 to 31.3.2024

ITEMS Under Purchase Sales Current Stock

Rate rete rate value
Cinthole Big soap 13.25 15.50 3000.00 39750.00
Lux international Soap 6.40 7.40 2100.00 13440.00
Margo Soap 4.50 6.00 1480.00 6660.00
Life boy gold Soap 5.25 7.00 2340.00 12285.00
Close up (200g) Paste 23.75 25.50 1240.00 29450.00
Close up (100g) Paste 12.00 13.50 450.00 5400.00
Close up (50g) Paste 6.50 7.00 1200.00 7800.00
Colgate total (200g) Paste 24.25 26.00 1100.00 26675.00
Colgate total (100g) Paste 12.50 14.00 530.00 6625.00
Colgate total (50g) Paste 7.00 8.00 40.00 280.00
Elit salt (1 kg) Salt 3.30 4.00 600.00 1980.00
Elit salt (500g) Salt 1.70 2.50 1300.00 2210.00
Clinic plus Shampoo 42.25 48.00 850.00 35912.00
shampoo(200ml)
Clinic plus shampoo Shampoo 22.00 26.00 430.00 9460.00
(100ml)
Melam chicken Masala 14.00 17.00 340.00 4760.00
masala (500gr)
Melam lime pickle Pickle 28.30 32.00 400.00 11320.00
(500gr)
Meal garlic pickle Pickle 32.60 37.00 560.00 18256.00
(500gr)
Today’s pen Pen 6.00 7.00 2200.00 13200.00
Natraj pencil Pencil 2.10 3.00 1590.00 3339.00
Harpic floor cleaner (1 Cleaner 28.50 33.50 1200.00 34200.00
lit)
Harpic Toilet cleaner Cleaner 32.60 40.25 300.00 9780.00
(1 lit)
Parie coffee break Sweets 0.41 0.50 25200 10332
Vicks ginger Vicks 0.25 0.35 44000 11000

Assignment – 04

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Alternative Stock Items Work

ABC Traders

Financial year 1.4.2023 to 31.3.2024

ITEMS Group Category Purchase Sales Quantity

Éclair (1 pkt/100 Nos) Sweets Sweets 68/pkt 1/Nos 100 pkt

Parie coffee (1 pkt/65 Sweets Sweets 50/pkt 1.50/Nos 180 pkt
Nos)
Munch (1 pkt/5 Nos) Chocolates Chocolates 30/pkt 10/Nos 150 pkt
Kit kat (1 pkt/5 Nos) Chocolates Chocolates 12/pkt 5/Nos 160 pkt
Power balm (1 case/8 Vicks Vicks 30/case 6.50/Nos 200 cases
Nos)
Vicks ginger (1 pkt/15 Sweets Sweets 45/pkt 8/Nos 165 pkt
Nos)
Pepsi (1 case/20 Nos) Cool drinks Cool drinks 80/case 15/Nos 250 cases
Fruity (1 box/ Nos) Soft drinks Soft drinks 25/box 14/Nos 111 box
5 star (1 pkt/16 Nos) Chocolate Chocolates 35/pkt 5/Nos 100 pkt
Grape (1 case/5 Nos) Wine Wine 40/case 10/Nos 155 cases
Lexi 5 (1 pkt/15 Nos) Pen Pen 50/pkt 5/Nos 125 pkt
Natraj pencil (1 Pencil Pencil 20/box 2.50/Nos 200 boxes
box/20 Nos)
Not book (1 box/40 Book Book 180/box 15/Nos 500 boxes
Nos)
Blank cd (1 case/100 Cd Cd 650/case 12/Nos 150/case
Nos)
English Dictionary (1 Dictionary Dictionary 150/box 10/Nos 250 boxes
box/55 Nos)

Godown / Location Creation

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For mentioning Godown wise keeping and transferring of inventory.

Gateway of Tally - Create - Godown/Location

Name: Name of Godown

Under: Primly

The default Godown(location) in Tally is “Main Location”.

Godown Transfer

Gateway of Tally - Vouchers - Other Vouchers (F10) - Stock Journal (Alt+F7)

It is used to record the transfer of stock from one godown to another without affecting the books of
accounts. This is also used to consumed product.

Source - Product taken godown | D e s t i n a t i o n - Product receiving godown.

Consumed Product

Gateway of Tally - Vouchers - Others Vouchers (F10) - Stock Journal (Alt+ F7) Enter product
details only in source (Consumption) side only.

Godown Report

Gateway of Tally- Display More Reports- Inventory Books- Godown

Physical Stock

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It is used to stock verification.

Gateway of Tally - Vouchers - Other Vouchers (F10) - Physical Stock (Ctrl+F7)

Quantity: Enter here balance quantity on hand

Cost Category & Cost Centers

Features (F11) Enable Cost Centers: Yes

For applying personal details during transaction that is applying sales rep in sales invoice, payment of
sales rep commission, salary payment to staff etc.

Cost category means the designation or department of staff, cost center means the name of persons
or things under the specified categories.

Cost Category Creation

Gateway of Tally - Create - S h o w More - C o s t Category - C r e a t e New

Name: Category Name (Sales Rep, Peon, Clerks, Stationary, Furniture etc.)

Allocate R e v e n u e item:
This option we can allocate all expenses and incomes related transaction.

Allocate non-revenue item:

With these options we can allocate liabilities and assets.

Cost Centre Creation

Gateway of Tally - Create - Cost center

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Category Select Category

Name: Cost Centre name (Person or things- Anil, Papers, Table etc.)

Cost center Report

Gateway of Tally - Display More Report - Statement of Accounts - C o s t centers

Category Summery F5(Payment)- Configure(F12)

Select Cost Center/Class: Yes

Show list of Cost Centers: Yes

Manufacturing

You can create a manufacturing journal and enter details of the components used to produce the
finished goods, or the Co-Products/By-Products/Scrap produced during the manufacture of the
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finished goods, and so on.

Manufacturing process where form of products is changed into finished product. For example, a
computer manufacturer buys CPU, Monitor, Mouse, Keyboard etc. Thus, many products or
components may be consumed to produce one or more products. The components are termed as raw
materials, and the produced goods are termed finished goods.

At the time of finished Product creation

Press F12 then Set Component list (Bill of Material) in Stock Items: Yes

Set Component BOM? Yes, in product creation window Then set components that need to create
one finished product

Manufacturing Transaction

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Gateway of Tally - Voucher - Stock Journal (Alt+7) - Change Mode (Ctrl+H)

Name of Product: Finished Product Name, Select Godown and enter manufacturing quantity and
additional cost.

Effective rate of Primary Item: Manufacturing Cost per unit

Purchases order and Sales order

Activate the Purchase Order and Sales Order Voucher

Purchase Order

Gateway of Tally - Vouchers - O t h e r Vouchers (F10) – Show inactive - P u r c h a s e Order

(Ctrl+F9

Activate this Voucher Type: Yes

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Do it also for Sales Order Voucher

Sales order

Gateway of Tally - Vouchers - O t h e r Vouchers (F10) – Show inactive - S a l e s Order

(Ctrl+F8)

Activate this Voucher Type: Yes

Tracking Numbers

You will use the tracking number to link this receipt note with the Supplier’s Invoice that will be
received later. (You will record the Supplier’s Invoice through the Purchase Voucher). It is related to
transportation.

Activate the following Vouchers

Receipt Note, Delivery Note, Rejection Out and Rejection in

Gateway of Tally -Alter - Voucher Type - Select the Vouchers

Activate this Voucher Type: Yes

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Tracking numbers link the different vouchers as follows

Receipt Note (Alt+F9)

Purchased item with tracking no reached into location.

Rejection Out (Alt+F6)

For recording of goods that were rejected and returned to a supplier.

Delivery Note (Alt+F8)

For recording goods delivered to a customer (sold item delivered with tracking no)

Rejection In (Ctrl+F6)

For recording goods received back that were rejected by a customer.

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Payroll

The process of paying salary or wages to employees based on their attendance.

Steps to follow

• Pay head Creation

• Employee Category Creation
• Employee Group Creation (Division, Section, Department)
• Employee Creation
• Record Attendance

Pass Payroll Entry Features (F11)

Maintain Payroll: Yes

Enable Payroll Statutory: Yes

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Pay Head Creation

Gateway of Tally - Create - Pay Heads

Salary Creation

Name : Salary
Pay head Type : Earnings for Employees
Income type : Variable
Under : Indirect Expenses
Calculation Type : On Attendance
Attendance/Leave with Pay : Present/Leave
Calculation Period : Months

Per Day Calculation basis : User Defined Month of 30 Days

DA Creation

Name : DA
Pay Head Type : Earnings for Employees
Income type : Fixed
Under : Indirect Expenses
Calculation Type : Flat Rate
Calculation Period : Month

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PF Creation

Name : PF
Pay Head Type : Deductions From Employees
Under : Current Liabilities
Calculation Type : Flat Rate
Calculation Period : Month

Employee Group Creation

Gateway of Tally - Create – Employee Group

Name : Type the Name E . g. Marketing Department

Under : Employee Group creation (Secondary)

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Employee Creation

Gateway of Tally - Create – Employee

Name : Employee Name

Under : Department Name
Date of Joining : Join Date of employee
Define salary details : Yes

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Record Attendance

Gateway of Tally - Vouchers - Other Vouchers (F10) – Attendance

Record Payroll Entry

Gateway of Tally -Vouchers - Other Vouchers (F10) - Payroll (Ctrl+F4) Autofill (Ctrl+H)

Autofill

Create Godown
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Gateway of Tally - Create - Godown - Create New

Name : Godown Name

More Details (Ctrl+I)

Job Costing Details

Allow storage of Materials : Yes

Set job/project for job costing : Select sub job

Job Costing

Features(F11)

Enable Cost Centers : Yes

Enable Job Costing : Yes

Create main Job

Gateway of Tally - Create - Show More - Cost Category - Create New Name
Name :( E.g. Building Work)

Create Sub Job

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Gateway of Tally - Create – Cost Centre

Category : Select Category

Name : Sub job name (Flooring work)

More Details (Ctrl+I)

Job Costing Details: Yes

Create Godown

Gateway of Tally - Create - Godown-Create New

Name : Godown Name

More Details (Ctrl+I)
Job Costing Details
Allow storage of Materials: Yes
Set job/project for job costing: Select sub job

Purchase Product for Job

Gateway of Taly – Voucher- Purchases (F9)

Use product for Job

Do it first alter the Stock Journal

Gateway of Taly -Alter- Voucher Type-Select Stock Journal- Alter

Name of Class

Consumption
Using Class for Job Costing Consumption? Yes

Gateway of Taly – Voucher- Stock Journal (Alt+F7)- Select Class Then entre the product details in
Consumption side only

Additional Cost for Job (Eg: Wages)

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Gateway of Taly – Voucher- Payment(F5)- Pass the wages transaction (Select Job)

Sold Job (Cash received from customer for Job)

Gateway of Taly – Voucher- Sales(F8)- Change Mode (Ctrl+H) Accounting Invoice Then select
the party name - Select Sales Account in Particulars
Select Main job and sub job

Job Report: - Gateway of Tally -Display More Reports -Statement of Inventory- Job work Analysis -
Select sub job

Interest Calculation

Calculate interest on Bank deposit, Bank loan and Sundry Debtors overdue bills.

Feature(F11)

Enable Interest Calculation: Yes

At the time of ledger creation

Gateway of tally - Create - Ledger

Activate Interest calculation: Yes

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Calculate Interest Based On: Bank/ Reconciliation Date Interest Balances: Debit Balances Only /
Credit Balances Only

Report

Gateway of Tally - Display More Report - Statements of Accounts - Interest Calculation Interest
Receivable
Interest Payable
Ledger

Reversing Journal & Optional voucher

Reversing Journal

When we record a transaction in Revering Journal with a date, that transaction is applicable only that
date.

Activate the voucher

Gateway of Tally - Alter -Voucher Type - Reversing Journal

Activate this Voucher Type: Yes

Gateway of Tally - Vouchers - Other Vouchers (F10) - Show Inactive - Reversing Journal

We can record any transaction.

Optional Voucher (Ctrl+H)

It is used to record suspense transactions that may or may not happen in future. We can make any
transaction optional. It is available in all vouchers by pressing Ctrl +L.
To clear optional voucher, open optional voucher that previously entered then press Ctrl+L then save
the transaction.

Gateway of Tally - Vouchers - open any voucher - then press Ctrl+L 37

(Optional) Post Dated Voucher (Ctrl+T)

This Voucher is used to post transactions after the current date. That is this transactions effect
the accounts on the given future date. We can make any transactions as postdated.

Gateway of Tally - Vouchers - open any voucher- then press Ctrl+T

(Post-Dated) Memorandum

It is used for personal transactions. This is a non-account voucher. Transactions passed through this
voucher don’t affect any accounts.

Activate the voucher

Gateway of Tally - Alter - Voucher Type - Memorandum

Activate this Voucher Type: Yes

Gateway of Tally - V o u c h e r s - O t h e r Vouchers (F10) - Show Inactive - M e m o r a n d u m

Report of Reversing, Memos, Optional & Post- D a t e d Vouchers

Gateway of Tally - Display More Reports - Exception Reports.

Accounting Masters

Scenario

To display variance actual with Scenario that recorded Post Dated, Memorandum, Optional, and
Reversing Journal.

Gateway of Tally - C r e a t e – S c e n a r i o 38
Report

Gateway of Tally - Profit & Loss Account - New Column (Alt+C)

Budget Creation

Gateway of Tally - Create - Show More - Budget

Name : Budget Name
Under : Primary
From: To: Group : Yes or Ledger : Yes Group Name or Account Name : Select Group or
Account
Type of Budget: On Closing Balance Amount: Type Budgeted Amount then SAVE it

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Report

Gateway of Tally - Display More Report - Trail Balance - Budget Variance (F10)

Credit Limit & Credit Period

Gateway of Tally - Create - Show More - Credit Limits

Credit Limit: Credit Amount Credit Period: Credit Days

Cost Centre Class

To pre allocate amount into Cost Center

Gateway of Tally - Create - Show More - Cost Centre Class

Gateway of Tally - Vouchers – Payment

Configure (F12)

Select Cost Centre Class: Yes

Show list of Cost Centers: Yes

By Salary To Cash

Then SAVE the transaction, after saving, open the voucher (Page up), then we can see the percentage
of amount allocated into cost centers.

Voucher Type 40
To Create New voucher depending on other vouchers

Gateway of Tally - Create - Voucher Type

Alter Voucher

Gateway of Tally - Alter - Voucher Type

Currency

To create multi-currency

Gateway of Tally - Create - Currency - Create New

Set Exchange Rate for Currency

Gateway of Tally - Create - Rate of Exchange

Ledger Group
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We can create a group for ledgers. The group is available in the ledger creation window.

Gateway of Tally – Create- Group

Name: Group Name

Under: Select Group
Group behaves like a sub-ledger: Yes

Report
Gateway of Tally Display More Reports Account Books

Inventory Features

Maintain Inventory: Yes

To create products

Integrate Accounts with Inventory: Yes

To display Closing stock Value in Balance Sheet and Profit and Loss Account

Enable Multiple price Levels: Yes

To enter different selling prices based on quantity.

Eg: - We may have 2 price lists for Retailer and Wholesaler.

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Gateway of Tally - Create - Price Levels

Company Price Levels

• Whole Seller
• Retailer

Gateway of Tally - Create - Price List (Stock Group/Stock Category)

Stock Group Name : All Items

Price Level : Whole Seller / Retailer

When we sell the product (F8) we can see the price changes.

Enable Batches: Yes

Maintain Expiry Date for Batches: Yes

Gateway of Tally - C r e a t e - S t o c k Item

Additional Details

Maintain in Batches : Yes

Track date of Manufacturing : Yes,
Use expiry dates : Yes

We can set Batch no., Manufacturing date and expiry date either at the time of giving opening stock
for product or purchase the product.

Expiry Report

Gateway of Tally - Display More Report - Statements of Inventory - Ageing Analysis

- Ageing Style (F9)

Enable Job Order Processing: Yes

Job Work in Order

A job order received from outside. Eg: We got job order for manufacturing Computer. Some time
they give the raw material for manufacturing. After manufacturing the finished product give to
outside party.

Example
43
Steps
- Receiving Job Order (Job work in Order)
- Receiving raw materials (Material In)
- Manufacturing Process (Manufacturing)
- Finished product give to party (Material Out)

Features (F11)

Enable Job Order Processing: Yes

Follow the steps of Manufacturing a Product

- Create Raw materials

- Create Finished Product

Receive Job Order (Job Work in Order)

Gateway of Tally - Vouchers - Other Vouchers (F10) - Job Work in Order

Party A/c Name : Select Debtor

Name of Item : Select Finished Product
Track Components : Yes
Quantity : Give the order quantity
Name of Item : Select Raw Materials
Track : Pending to Receive
Quantity : Give the quantity need for the job

Material In

Gateway of Tally - Vouchers - Other Vouchers (F10) - Material In

Party A/c Name : Debtor Name

Name of Item : Select raw materials

Manufacturing

Gateway of Tally - Vouchers - Other Vouchers (F10) - Stock Journal (Alt+F7) - Change
Mode (Ctrl+H) - Use for Manufacturing Journal

Name of Product : Select Finished Product

Quantity : Manufacturing Quantity

44
Material Out

Gateway of Tally - Vouchers - Other Vouchers (F10) - Material Out

Party A/c Name : Debtor Name

Name of Item : Finished Product
Qty : Job Order Qty

Job Sales (Service charge for job)

Gateway of Tally - Vouchers - Sales (F8)

Change Mode (Ctrl+H) Accounting Invoice

Party A/c Name : Debtor Name

Particulars : Job Sales (Sales Account)

Job Work Out Order

The firm give job order to outside party.

Gateway of Tally - Vouchers - Other Vouchers (F10) - Job Work Out Order

Party A/c Name : Creditor name

Order No :
Name of Item : Finished Product Name
Track Components : Yes
Quantity : Output Qty
Name of Item : Select Raw Materials

Enable Cost Tracking

To find out the profit of additional Income/Expense related with purchase and sales of product.

Features (F11)

Enable Cost Tracking : Yes

Gateway of Tally - Create - Stock Item

Configure (F12)

Is Cost Tracking Applicable for stock Item : Yes

Item Name :
Under :
Unit :
Enable cost tracking : Yes

45
Discount Column

Features (F11)
Use discount column in invoices : Yes
To get discount column in Purchase and Sales Voucher

Actual And Billed Quantity

Features (F11)

Use separate Actual and Billed Quantity columns in Invoices: Yes

This option enables the quantity are different from that delivered.

When purchase 2 Nos Shirt, 1 Nos. Shirt get free. Here actual quantity 3 Nos. billed quantity 2 Nos.

Zero Value Transaction

To display Zero value ledgers in vouchers.

Gateway of Tally -Alter -Voucher type- Purchase/Sales

Allow Zero-valued transactions: Yes

46
Additional Cost with Purchases

To enter additional expenses with purchase transaction

Gateway of Tally -Alter -Voucher type- Purchase

Track Additional Cost for Purchases: Yes

Gateway of Tally -Voucher - Purchase (F9) -Change Mode (Ctrl+H) -”As Voucher” By Purchases

To Cash / Creditor

Stock Category

To create product category

Gateway of Tally -Create -Stock Category

Name: Category Name

Eg: LED

Gateway of Tally -Create -Stock Item

Configure (F12)

Use Stock Category for Stock Item: Yes

Report

Gateway of Tally - Display More Reports - Inventory Books - Stock Category Summary

47
STATUTORY FEATURES

GST (Goods and Service Tax)

In India GST started from 1st July 2017

Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of
goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because
it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed
at every step in the production process but is meant to be refunded to all parties in the various stages of production
other than the final consumer and as a destination-based tax, it is collected from point of consumption and
not point of origin like previous taxes.

Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and
28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead
are taxed separately by the individual state governments, as per the previous tax system. There is a
special rate of 0.25% on rough, precious and semi-precious stones and 3% on gold. In addition, a cess of
22% or other rates on top of 28% GST applies to a few items like aerated drinks, luxury cars and tobacco
products.

The tax came into effect from 1 July 2017 through the implementation of the One hundred not One (101)
Amendment of the Constitution of India by the Indian government. The GST replaced existing multiple taxes
levied by the central and state governments.

The tax rates, rules and regulations are governed by the GST Council which consists of the finance
ministers of the central government and all the states.

Goods and services across various GST rate

• Exempt
• 5%
• 12%
• 18%
• 28%

Exempted Goods

Poultry Products – Fresh Meat, Fish, Chicken, Eggs

Dairy Products – Milk, Curd, Butter Milk, Jaggery (Gur), Lassi, unpacked Paneer, Fresh Fruits &
Vegetables

Food Items – Natural Honey, Flour (Atta & Maida), Pulses, Basmati Rice, Gram Flour (Besan),
Bread, Vegetable Oil, Religious Sweets (Prasad), Common Salt

Cosmetics & Accessories – Bindi, Vermillion (Sindhoor), Bangles Stationery – Stamps, Judicial
Papers, Printed Books, Newspapers

48
Services

• Hotel Services priced at less than INR 1000

• Education (exemption continued from before)
• Healthcare (exemption continued from before)

GST at 5%

Goods

• Dairy Products – Skimmed Milk Powder, Milk food for babies, Condensed milk, Packaged
Paneer, Cream, Frozen Vegetables
• Food Items – Sugar, Spices, Edible Oil, Pizza Bread, Rusk, Sweets, Fish Fillets, Tapioca
Beverages – Coffee, Tea, Juices
• Apparel – below 1000 INR
• Footwear – below 500 INR
• Fuel – Kerosene, LPG, Coal Solar Panels
• Medical Goods – Medicines, Stents Newsprint
• Lifeboats
• Textile – Cotton, Natural Fiber and yarns Incense Sticks (Agarbatti)

Services

• RailwayTravel
• Economy ClassAir Travel
• Cab Aggregators (e.g. Uber & Ola)

GST at 12%

Goods

• Dairy Products – Butter, Cheese, Ghee Packaged Dry Fruits

• Food Items – Snacks (Namkeen & Bhujia)
• Packaged Chicken, Sausages, Jams, Sauces Beverages – Fruit Juices, Packed Coconut
Water
• Apparel – above 1000 IN
• Personal Hygiene – Tooth Powder
• Stationery – Exercise Books, Notebooks
• Common Utilities –Sewing Machine, Umbrella
• Ayurvedic Medicine
• Mobile Phones

49
Services

• Non-AC Hotels &

Restaurants
• Business Class Air Travel

GST at 18%

Goods

• Dairy Products – Ice Cream

• Preserved Vegetables
• Food Items – Flavored refined sugar, Pasta, Corn Flakes, Pastries, Cakes, Soups, Instant
Food Mixes, Processed Foods
• Beverages – Mineral Water
• Branded Garments
• Footwear – above 500 INR
• Personal Hygiene – Tissues, Toilet Paper, Hair Oil, Soap Bars, Toothpaste
• Stationery – Envelopes, Fountain Pens
• Electronic Equipment – Printed Circuits, Monitors
• Iron & Steel Products
• Biri wrapper leaves (Tendu Patta)
• Biscuits
• Textile – Man-made fiber and yarn

Services

• Accommodation at hotels with tariff of more than 2500 INR but less than 7500 INR
• Supply of food / drinks in AC / 5 star and above rated restaurants
• Telecom Services
• IT Services
• Financial Services
• Works Contract
• Cinema Tickets worth 100 INR or less

50
GST at 28%

Goods

• Food Items – Chocolates, Chewing Gum, Custard Powder

• Beverages – Aerated Water
• Personal Hygiene – Deodorants, Shaving Cream,After Shave, Hair Shampoo, Dye,
Sunscreen, Perfume, Face Creams, Detergents
• White Goods – Vacuum Cleaner, Shavers, Hair Clippers, Washing Machines, Dish Washers,
• Water Heaters & other Home Appliances
• Speakers
• Cameras
• Automobiles & Motor Vehicles
• Housing Materials – Paint, Wallpaper, Ceramic Tiles, Cement
• Weighing Machines,Vending Machines,ATM
• Fireworks
• Luxury / Demerit Goods – Pan Masala, Tobacco, Bidis, Aerated Drinks & Motor Vehicles

Services

• Racehorsebetting
• Accommodation at hotels with tariff of more than 7500 INR
• Cinema Tickets worth more than 100 INR

Note - Luxury / Demerit Goods as listed above will also attracted a compensation cess over and above the
GST rate of 28%

Items GST Rate Approved cess

range
Coal 5% INR 400/ton
Pan Masala 28% 60%
Tobacco 28% 61% - 204%
Aerated Drinks 28% 12%
Motor Vehicles 28% 1% - 15%

The cess will be 15% for cars with over 1500cc engine capacity, other sports and luxury cars. The cess will
be 1% for smaller cars.

Existing tax followed by the product - liquor, crude oil, petrol, high speed diesel, gas airplane fuel and
electricity.

51
Types of GST

Based on the kind of transaction, there are four types of GST, viz. Central Goods and Services Tax (CGST),
State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST), and Union Territory Goods
and Services Tax (UTGST).

Central Goods and Services Tax (CGST)

CGST is charged for the intra-state supply of products and services. The Central Government levies CGST
and it is governed by the Central Goods and Services Tax Act. CGST has effectively replaced all the previous
Central taxes such as Central Excise Duty, Customs Duty, Service Tax,

CST, etc. It is charged to taxpayers along with SGST. The rate at which CGST is charged is usually the
same as the SGST rate, and the revenue collected under CGST is remitted to the Central Government.

State Goods and Services Tax (SGST)

SGST, like CGST, is charged on the sale of products or services within a state. The State Government
is responsible for the levy of SGST. This tax replaces all the previous taxes such as Entry Tax, Value Added
Tax, Entertainment Tax, State Sales Tax, cesses, and surcharges. The revenue collected under SGST is
remitted to the State Government.

Integrated Goods and Services Tax (IGST)

IGST is charged for inter-state transactions of products and services. It is also levied on imports. The Central
Government collects IGST and distributes it among states. IGST is levied when goods or services are
transferred from one state to another. The tax was implemented so that states would only have to deal with
the Union Government rather than dealing with each state.

Union Territory Goods and Services Tax (UTGST )

UTGST is levied on the supply of products and services in any of the Union Territories in the country, viz.
Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and
Chandigarh. UTGST is levied along with CGST.

GST Registration Number

The 15-digit ID - First 2 digit signifying State code, next 10 digit PAN number, next 1 digit signifying
number of registration and last 2 digits having default and checksum values.

Kerala Sate Code 32

GST in Tally Features (F11)

Enable Goods and Service Tax (GST): Yes

Set all details like State, Registration Type, GSTIN etc.

52
Product Creation

Gateway of Tally - Create - Stock Item

Configure (F12)

Set GST details: Yes

Name: Product Name Under :

Unit :
Set Standard rates : Yes

Statutory Details

GST Applicable :Applicable

Set/Alter GST Details : Yes

Configure (F12)

Set full options :Yes

Calculation Type : On Value

Taxability : Taxable
Integrated Tax Rate : Type the percentage of rate

Central tax, State tax Automatically came (Tax rate divided into both)
Cess :
Type of supply : Goods / Service Then SAVE

Intra State (Inside State) Purchases, Purchases Return, Sales and Sales return as follows

At the time of Creditor and Debtor creation select the same State of Company.

53
54
Tax Paid to Govt. (Different of Input and Output Tax)

55
56
57
58
59
Tax Deducted at Source (TDS)

TDS is one of the modes of collecting income tax. The deducts the tax from the payment made to
deductee and remits the tax to income tax department within the stipulated time.

Question:
1. Raj Serviced Computers. His service charge @Rs.15000, tax 5%, surcharge 3% and additional
surcharge (Cess) 2%. ( Journal F7 )

Computer Service Ledger Creation

Name : Computer Service

Under : Indirect Expenses
Is TDS applicable : Applicable
Nature of Payment : Create Nature

Enter the percentage and other details, then SAVE it.

Creditor Ledger Creation

Name : Raj
Under : Sundry Creditor Give TDS details
then SAVE

TDS Ledger Creation

Name : TDS
Under : Duties & Taxes
Type of Duty/Tax : TDS
Nature of payment : Select

TDS paid to Govt. (Payment F5)

60
By TDS
To Cash

Service charge paid to Raj (Payment F5)

By Raj To Cash

Report

Gateway of Tally - Display More Reports - TDS Report

TCS

TAX COLLECTEDAT SOURCE

Tax collected at source by the seller (Collector) from the buyer. The goods are as specified under
section 206 C of the income tax Act 1961.

Under TCS seller is defined as any of the company

• Central Govt.
• State Govt.
• Any Company
• Partnership Firm
• Co-Operative Society

Buyer

• Public Sector Company

• Central Govt.
• State Govt.
• Any Club, Social or sports club

Goods Classified under TCS

• Alcoholic liquor
• Timber
• Mining Or Quarrying
• Parking Lot,
• Toll Plaza

61
The Certificate of collection of tax at source has been submitted in form No 27 EQ by person
collecting tax at source within a week from the last day of the month in which tax was collected.

Steps.

Feature(F11)

Enable Tax Collected at Source (TCS): Yes

Sold the product (F8)

Debtor Creation

Name :
Under : Sundry Debtor
Is TCS Applicable : Yes
Buyer/Lessee Type : Select
Use Advanced configurations for TCS : Yes
Ignore Income Tax exemption limit : Applicable
Create Nature of Goods

Sales Ledger Cration

Name : Sales
Under : Sales Account
Is TCS Applicable : Applicable
Nature of Goods : Select

TCS Ledger Creation

Name : TCS
Under : Duties & Taxes
Type of Duty/Tax : TCS
Nature of Goods : Select Nature

62
Cash received from customer

(Receipt - F6)

By Cash
To Vimal (Debtor)

TCS paid to Govt.

(Payment - F5)

By TCS
To Cash

TCS Reports:

Display - Display More Report - TCS Reports - Form 27 EQ

VAT (Value Added Tax)

What is GCC VAT?

GCC VAT is an indirect tax that will be levied on goods and services in the member states of the Gulf
Cooperation Council. The member states of GCC are Saudi Arabia, Dubai, Qatar, Bahrain, Oman and
Kuwait.

Gulf Cooperation Council announcing a Value Added Tax from 2018.

How will the GCC VAT be levied?

Registered businesses who operate in any of these states will levy VAT on the goods and services they supply,
on behalf of the government. It will be levied in each stage of the supply chain and the end user will incur its
payment. The GCC VAT will also be levied on the import of goods.

VAT Percentage

The GCC VAT will be calculated at the rate of 5 Percent. However, as mentioned above, certain sectors and
exports will be taxed zero Percent, making them tax exempt.

63
The GCC has applied zero-rate on certain goods and services such as medicine and medicine supplies, certain
food, the oil sector, international and intra-GCC transport, supply outside the GCC (export) and the supply
of precious metals for investment.

Apart from this, every member state of the GCC can also apply zero-rate on some sectors such as education,
real estate, local transport and medicine.

VAT Registration

Every business which has an annual turnover of SAR 375,000 (or its equivalent in the currency of any GCC
member state) is required to register for the VAT. In other words, the annual turnover of SAR 375,000 or
its equivalent is the VAT registration threshold. Businesses whose annual turnover is below the said amount
are not obligated to register, though they can do so voluntarily.

Documents for filing VAT returns?

The main document that a business needs to maintain to file VAT returns is the invoice. Businesses should
issue VAT invoices on every sale they make and every service they offer. Apart from the invoices, business
should also keep records such as:

Debit or credit notes, Import and export records, Records of goods/services provided for free or allocated
for private use, Zero rated or VAT exempt supplies and purchases

Filing

VAT returns filing monthly or quarterly.

Nature of Supplies

Taxable Supplies
• Supply of Goods/Services for a Consideration conducting Business in the State and does
not include Exempt Supplies.
• Tax - 5% Rate
• Input Tax Recoverable
• Must register for VAT if threshold of turnover exceeds 375,000 or voluntary if exceeds 187,500

Zero Rated Supplies

• Taxable Supplies that are subject to Zero Rated VAT

• Tax - 0% rate
• Input Tax Recoverable
• Must register for VAT if threshold of turnover exceeds 375,000 or voluntary if exceeds
187,500

64
Exempt Supplies

• Supply of Goods/Services for Consideration conducting Business in the State, where no Tax
is due
• Tax-EXEMPT
• No Input Tax Recoverable
• Registration not required if only exempt supplies are made

VAT in Tally

In company creation window

State : Change Country
Select Country : UAE Emirate:

Features(F11)

Enable Value Addes Tax (VAT) :Yes

Set VAT details

Product Creation

Gateway of Tally - Create - Stock Item

Configure (F12)

Set Vat Details :Yes

In Product Creation Window Taxability :Taxable

Tax Rate : 5%
Type of Supply : Goods

Purchases Ledger Creation

Name : Purchases
Under : Purchases Account
Taxability : Taxable
Tax Rate : 5%
Type of Supply : Goods/ Service

Sales Ledger Creation

Name : Sales
Under : Sales Account
Taxability : Taxable
Tax Rate : 5%
Type of Supply : Goods/Supply

65
Input Vat Ledger Creation

Name : Input VAT

Under : Duties & Taxes
Type of Duty/Tax : VAT

Output Vat Ledger Creation

Name : Output VAT

Under : Duties & Taxes
Type of Duty/Tax : VAT

66
Purchases Return and Sales Return like Purchases and Sales, that follows Input Vat and
Output VAT respectively.

VAT Report

Gateway of Tally - Display More Reports - VAT Reports - VAT 201

Excise Duty

Central Excise is a Tax on the act of manufacture or production. Excise is collected on the goods
manufactured or produced at the time of their removal from the factory for administrative
convenience. Central Excise Duty rms the single largest source of tax revenue for the Central
Government of India. They are levied and collected by the Central Excise Department under the
authority of the Central Excise Act, 1944. Power to collect excise duty on alcohol and opium has been
assigned to the States.

F11: Features

Enable Excise : Yes

Steps:

Create Creditor and Debtor Account Set/Alter Excise Details? Yes

Create Product

Is Excise applicable : Applicable

Set/alter excise details : Yes
Set the HSN and Tax Rate etc. Type of stock item : Finished Goods

Create Purchase ledger creation Name : Purchases

Under : Purchases Account
Is Excise applicable : Applicable
Set/Alter excise details : No
Include in assessable value calculation for : Excise
Method of Calculation : Based on Value

67
Sales Ledger creation Name : Sales Ledger
Under : Sales Account
Is Excise applicable : Applicable
Set/Alter excise details : No
Include in assessable value calculation for : Excise
Method of Calculation : Based on Value

Input Excise Duty

Ledger Creation Name : Input Excise Duty

Under : Duties & Taxes
Type of duty/tax : Cen Vat
Duty Head : Basic Excise Duty
Percentage of Calculation : Type percentage

Output Excise Duty

Ledger Creation Name : Output Excise Duty

Under : Duties & Taxes
Type of duty/tax : Cen Vat
Duty Head : Basic Excise Duty
Percentage of Calculation : Type percentage

Purchase Transaction

Gateway of Tally - Vouchers - Purchase (F9) - Change Mode (Ctrl+H) - Excise Invoice

68
Sales Transaction

Gateway of Tally - Vouchers - Sales (F8) - Change Mode (Ctrl+H) - Excise Invoice

Tax Paid to GOVT.

Payment (F5)

By Output Excise
To Input Excise
To Cash

Reports.

Gateway of Tally - Display More Report - Central Excise Reports

Service Tax

Service tax is an indirect tax levied on certain categories of services provided by a person, firm,
agency, etc. The Government of India has marked a set of services as taxable under the service tax
structure. The seller provides a service and the responsibility of paying the service tax to the
government rests with the seller.

Features(F11)

Enable Service Tax : Yes

1. Sold service to customer (F8)

2. Received cash against the service (F6)
3. Service tax paid to Govt. (F5)

69
Create Service Ledger

Gateway of Tally -Create -Ledger

Name : Service Name
Under : Sales Account
Is service tax applicable : Applicable
Set/Alter service tax details : Yes

Create Service Category and set percentages

Create Service Tax Ledger Name : Service Tax

Under : Duties & Taxes
Type of duty/tax : Service Tax
Tax head : Service Tax

Create Customer

Ledger Name :
Under : Sundry Debtor
Set/Alter service tax details : Yes

Sold Service

Sales (F8)

Cash received

Receipt (F6)

By Cash
To Customer

Service Tax paid to Govt,

Payment (F5)

By Service Tax

To Cash

70
Report

Gateway of Tally -Display More Report-Service Tax Report

All services came under GST. So, Services transaction do as GST transaction.

Gateway of Tally -Vouchers -Sales(F8) -Change Mode (Ctrl+H)- Accounting Invoice

Multiple Address

Add one more address for company. If a company has more than one branch, we can add the branch
address and print a report for any branch name.

Feature (F11)

Enable Multiple Address : Yes, Add address

At the time of print any report set the

Configure

Show More Type of Address: Select address you want.

Mark modified Voucher

To display modified vouchers

Features (F11)

Mark modified Vouchers : Yes

Gateway of Tally -Display More Reports-Exception Reports -Marked Vouchers

71
Backup

To take copy of company into another drive Data Menu (Alt+Y) -Backup

Backup Destination Path: Type drive and folder name that you want to backup
Eg: D:\ABC
Company Name: Select Company

In destination path a file saved with the name “TBK” followed by some numbers

Restore

To restore a backup company. If a person deletes a company, we can restore it that previously
backuped.

Data Menu (Alt+Y) -Restore -Select from Drive/Specify Path

Company Name : Select Company

Delete

Company Menu (Alt+K)-Alter -Enter -Alt+D- Yes

Split Company

Split Company Financial Year

Data Menu (Alt+Y) -Split -Split Data
Split from: Enter the date that you want to split

Verify Data

To check error occurred while split company Data Menu (Alt+Y) -Split -Verify Data

Close Financial Year

To close financial year then enter new year. In India financial from 1st April to 31st March. After
March, the new year starts. At that time, you must close the old year.

Gateway of Tally - Alt+F2 Here enter new year

Tally Vault Password

It is used for hiding the company name from the list of created companies in company creation window

Press F12 (Configure)

Use Tally Vault Password to encrypt Company Data : Yes

then Tally Vault Password : Enter Password and Confirm Tally Vault Password.
When the company opens, ask for the Vault password then enter the correct password.

72
Change Vault Password

Company Menu (Alt+K) Tally Vault Old Password : Enter old password
Password : Enter New Password

Tally Audit

Tally Audit provides the capability to the administrator/auditor to track changes in the accounts at the
time of Company Creation enter the name of administrator and password.

Use Tally Audit features : Yes

Gateway of Tally- Display More Reports -Statements of Accounts-Tally Audit

Voucher Type : To Audit

Transactions Masters : To Audit Accounting Masters
User : To Audit User-wise

Check the transactions and accept by pressing Alt+R (Accept One) Audited transaction cannot be
restored.

Group Company

To bring two or more companies into a group. It is used for comparison of different companies.

Company Menu (Alt+K) - Select (Alt+F3) open companies (More than One)

Company Menu (Alt+K) -Create - Group Company (Alt+R)

Company Name : Type Group Name

Enter Address and other details :
Members companies : Select each company under that group

To compare business open Profit & loss Account, Balance Sheet or other report

Gateway of Tally - Profit & Loss - Alt+C- Select each company

Bank Reconciliation ( Alt+R)

A bank Reconciliation statement is a statement prepared by a business having a bank account to

reconcile agree the bank balance as shown by the cash book with that shown by the passbook.

Gateway of Tally – Banking- Bank Reconciliation -Select bank a/c -Press Enter

Bank date : Enter here the date that recorded in Bank

Overdue bill reports of debtors and creditors.

Gateway of Taly - Display More Report- Exception Reports- Overdue Receivables

Overdue payables.

73
Exporting and Importing

The export of data is mainly used data converted from one company to another company. Open
Exporting and Importing company

Step 1

Export Masters

Open exporting company (F3)

Export Menu (Alt+E) -Masters - Configure - Show More

Type of Masters : All Masters

File Format : XML
File Name : Master.xml

then Press “Escape” button then click “Send” button

Step 2

Export Transaction

Export Menu (Alt+E) -Transactions - Configure -Show More

Type of Voucher Entries: All Vouchers

File Format : XML
File Name : Transactions.xml

then Press “Escape” button then click “Send” button

Step 3

Import Masters

Open importing company (F3)

Import Menu (Alt+O) - Masters

File to Import (XML) : Mastrer.xml
Behavior of Import if Masters already exists : Modify with new data

Step 4

Import Transaction

Import Menu (Alt+O) -Transaction

File to Import (XML) : Transactions.xml

74
Export Reports

Export any reports into Ms Word, Ms Excel, Image, PDF and HTML Eg: Export Balance sheet

Open Balance Sheet

(Gateway of Tally -Balance Sheet) Export Menu (Alt+E) -Current (Ctrl+E) -Configure

Format of Report : Detailed (Press Enter)

File Format : ASCII
File Name : Bsheet.doc (Export into Ms Word) Escape
Send

File Format : Excel

File Name : Bsheet.xlsx (Export into Ms Excel)

File Format : HTML

File Name : Bsheet.html (Export into HTML File - Web Page)

File Format : JPEG

File Name : Bsheet.jpg (Export into Image File)

File Format : PDF

File Name : Bsheet.pdf (Export into reader File)

Reorder levels and Reorder Quantity

Reorder level used to find out stock quantity going to low position. It is also used to check have sufficient
stock to supply.

Activate purchases order voucher

Gateway of Tally – Alter - Voucher Type - Purchase Order

Activate this Voucher Type:Yes

Gateway of Tally – Alter- Show More -Reorder Level (Stock Item)

Reorder Quantity : Minimum Quantity on Hand

Minimum Order Quantity: Quantity to be ordered (Minimum ordering quantity)

Report

Gateway of Tally - Display More Report - Statement of Inventory - Reorder Status - Stock Group/Stock
Category

75
Print Vouchers Automatically

Gateway of Tally – Alter- Voucher Type

Select any Voucher Print Voucher after saving :Yes

Point of Sales

Create a new voucher for sales

Gateway of Tally -Alter -Voucher Types -Create

Name : POS
Select Type of Voucher : Sales
Use for POS Invoicing : Yes

Gateway of Tally - Vouchers - Sales (F8) Select POS

Gift vouchers: Credit Amount

Cheque Book Details

When creating bank ledger

(Gateway of Tally - Create - Ledger)

Set/Alter cheque books : Yes

From Number To Number Number of cheques Cheque Book Name

100000 25 Book 1

76
Cheque Printing

To print Cheque when make payment through cheque

Gateway of Tally -Create -Ledger

Name : SBI
Under : Bank Account

Security Control

To Create User and set security

Step 1

In Company Creation window

Control User Access to Company Data : Yes
Username (Administrator) : Name of user - Eg: Anil
Password :
Confirm Password :

77
Step:2

Create second user

Company Menu (Alt+K) -Users and Passwords

User Roles : Data Entry
Username :
Password :

Step:3

User Roles Settings

Company Menu (Alt+K) - User Roles

List of Security Level : Data Entry

Use Basic Facilities of : Data Entry
Disallow the following Facilities : Set security

Eg: - Alter Balance Sheet (Don’t alter balance sheet)

Display Profit & Loss Account (Don’t display profit & loss account)

Step:4

Company Menu (Alt+K) -Shut (Ctrl+F3)

Step:5

Company Menu (Alt+K) -Select (Alt+F3) open with second user

When open company with second user and password - they don’t get the disallowed facility

Change User

To change one user to another user Company Menu (Alt+K) - Change User

Change Password

To change user password

Company Menu (Alt+K) - Change Password

Password Policy

To set password strength, expiry etc.

Change Language

To set display and data entry language Help Menu (F1) -Settings -Language

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Go To (Alt+G)

Easly go to reports (Home Page). Type here you want to see.

Common Shortcut keys

CTRL+Q Quit
CTRL+A Save
ALT + C Create master & Auto value Calculator
ALT + K Company Menu
CTRL+ ENTER Edit
Alt +D Delete
Alt +F2 Change period
Alt +F1/Alt+F5 Detailed View
Alt +E Export Menu
F11 Features
F12 Configuration
Alt +P Print Menu
Ctrl+P Print
F2 Change Date

Short Cut from Day Book

Ctrl+R Removing transactions temporary

Ctrl+U Restore the removed transaction
ALT+2 For duplicating transaction
Alt+A/Alt+I Insert Accounting Vouchers (Before or After selected voucher)
Alt+X Cancelling transactions
Alt+F3 To select a company
Ctrl+F3 shut company
PgUp Display previous voucher during voucher
PgDn Display next voucher during voucher entry/alter
CTRL + ENTER To alter a master while making an entry
Ctrl +W To select the Language Configuration
Ctrl + M To Email the report

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Vouchers

F4 Contra
F5 Payment
F6 Receipt
F7 Journal
F8 Sales
F9 Purchases
Alt+ F6 Credit Note
Alt + F5 Debit Note
Ctrl+ F9 Purchases Order
Ctrl + F8 Sales Order
Alt + F7 Stock Journal
Ctrl + F7 Physical Stock
Ctrl + L Optional Voucher
Ctrl + T Post Dated Voucher
Alt + F9 Receipt Note
Alt + F8 Delivery Note
Ctrl+ F5 Rejection Out
Ctrl + F6 Rejection In
Ctrl + F4 Payroll

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