INTRODUCTION TO TALLY

Tally is one of the most commonly used financial accounting software application used by organisations to
maintain the records of all their business transaction. Tally solutions was established in the early 1980s. Antraweb
technologies is a trusted partner of Tally solutions almost since its inception and is a one-stop solution for all your
accounting needs providing complete tally based solutions.

Features of Tally prime:

1. Interactive Home Solutions:

2. Navigation across Tally prime
3. Simpler Data Entry
4. Unique Reporting facilities
5. Easy step
6. Personal set up
7. Multiple data sharing
8. Customized reports
9. High security
10. Connectivity

HOW TO CREATE COMPANY:

Step 1: To create a Company in Tallyprime, Press Alt + K> Create.

Step 2: Enter the company name, mailing name and address, State, Mobile No, E-mail address, etc.

Step 3: Press Ctrl + A to accept it.

SELECTING A COMPANY:

Step 1: Click F3: Company Info button on the Button panel.

Step 2: Double-click to select the company which you want.

ALTERING AN EXISTING COMPANY:

Step 1: Click the F3: Company Info button on the button panel.

Step 2: Double-click the Alter option in the company Info menu.

Step 3: The company alteration screen appears, make the required changes in the existing information.

DELETING A COMPANY:

Step 1: Click the F3: Company Info button on the button panel.

Step 2: Double-click the Alter option in the company Info menu.

Step 3: Press Alt + D to delete the company.

COMPANY FEATURES (F11):

By pressing F11 we can modify/change various features of a company also we can enable or disable other features
by pressing F11 at any point we need.

CONFIGURATION COMPANY (F12):

Tally allows us to change the configuration options of various features, such as accounting, inventory, payroll and
banking according to the requirement. It is used to modify the configuration of various features of the company.

CREATING NEW GROUP:

In Tally there are twenty-eight (28) predefined groups that save your time by avoiding to create a frequently used
groups.
Step 1: Click Masters ------ Create----- Account Masters----- Group, in the Gateway of Tally menu.

Step 2: Type the name of the group to be created beside the Name field.

Step 3: Press the enter key. A list of Groups menu appears.

Step 4: Select the desired group from the List of Groups (28) menu.

Step 5: Press enter and Accept it.

ALTERING GROUP:

Step 1: Click Masters----- Alter------ Account Masters----- Group, in the Gateway of Tally menu.

Step 2: Select the group from the List of Groups menu that you want to modify. You cannot change the parent of a
Reserved/Predefined group like Bank/ Bank OCC, Cash, Sundry Debtors/ Sundry Creditors etc.

Step 3: Enter new information for the selected group

Step 4: Click Yes to accept.

SINGLE LEDGER CREATION:

Step 1: From Gateway of Tally> Create>Select ledger and press enter.

Step 2: Enter the Name of the ledger account.

Step 3: Select a group category from the List of Groups. To create a new group from this field, Press Alt+C.

Step 4: Accept the screen or Press Ctrl+A.

LEDGER CREATION FROM TRANSACTION/VOUCHER:

From Voucher Creation/ Alteration screen, press Alt+C, from ledger field.

ALTER THE LEDGER:

Step 1: From Gateway of Tally>Alter>Select Ledger and press enter.

Step 2: Select the ledger from the list of ledger and press enter.

Step 3: Ledger alteration window select the ledger you want to modify.

DELETE LEDGERS:

Step 1: Gateway of Tally>Alter Master>Select Ledger and press enter.

Step 2: Select the ledger from the List of Ledgers.

Step 3: Press Alt+D.

LEDGER VOUCHER REPORT:

Step 1: Gateway of Tally>Display More reports>Accounts Books>Ledger and press ledger.

Step 2: Select the required ledger.

Step 3: Press F2 to change the period as required.

Step 4: Press F8 (Columnar) to view details of vouchers in separate columns.

VIEW OPENING BALANCES OF ALL LEDGERS IN A SINGLE SCREEN:

Step 1: Gateway of Tally>Chart of Accounts>Ledger> and press enter.

Step 2: Press Alt+H (Multi-Masters)>Select Multi Alter>and press Enter.

Step 3: Select all items from the List of Groups.

PRINT OPENING BALANCES OF ALL LEDGERS FROM A SINGLE SCREEN:

Step 1: Gateway of Tally>Display More reports>Trial Balance

Step 2: Press F5 (Ledger wise) and press Ctrl+P to print.

Step 3: Press C: Configure to set options for printing.

Step 4: Enable the option Show Opening Balances by pressing Enter on it.

Step 5: Enable the option Show Accounts with Zero balance by pressing Enter on it.

Step 6: Press Ctrl+A to accept the configuration screen.

Step 7: Press I: Preview to see the preview before print.

COST CATEGORIES:

Cost categories allow allocation of a transaction to several sets of cost centers. Cost categories such as Head Office,
Plant-A, Plant-B, Workers group, Accountants, Salesman, Marketing Manager etc. Cost Centers means the name of
the person who works in these departments. The concept of cost centers and cost categories is similar to ledgers and
groups respectively.

CREATE SINGLE CATEGORY:

Step 1: Gateway of Tally>Create>Select Cost Category>Press Enter.

Step 2: In Cost Category window type Name (i.e Marketing Manager)

Step 3: Accept the Cost Category screen. Or Press Ctrl+A.

CREATE MULTIPLE COST CATEGORIES:

Step 1: Gateway of Tally>Chart of Accounts>Cost Categories>Press Enter.

Step 2: Press Alt+H (Multi-Masters)> Select Multi-Create>and Press Enter

Step 3: Enter Name of Cost Category and allocate it to Revenue Items.

Step 4: Accept the cost category master. Or Press Ctrl+A to accept.

COST CENTRE:

The Cost centre feature of Tally prime enables us to maintain incomes and expenses, as per different business units,
employees, projects, departments, and so on. It can have one or more cost centres in your company, as needed.

CREATE COST CENTRE:

Step 1: Gateway of Tally>Create>Cost Center> Press enter.

Step 2: In case the feature is inactive, you will be prompted to activate the Cost center feature. Select Yes.

Step 3: In Cost Center window Put the name of Worker or any item.

Step 4: Under: Select Primary or an existing cost centre.

Step 5: Press Ctrl+A

CREATE MULTIPLE COST CENTERS:

Step 1: Gateway of Tally>Chart of Accounts>Cost centers>press enter.

Step 2: Press Alt+H (Multi-Masters)>Select Multi-Create> and press enter.

Step 3: Enter the Name of Cost Centre and select the cost center under.

Step 4: Accept the Cost Center master.

COST CENTRE SUMMARY:

Step 1: Gateway of Tally>Display More Reports>Statements of Accounts>Cost Centers>cost centre summary.

BILLS OF MATERIALS:

Bill of materials provides the list of inputs required to produce another final output. Ex. Key board, Mouse, Ram,
Monitor, Hard Disk, software etc. are inputs to make a Computer.

Step 1: Gateway of Tally>Create>Stock Item>press Enter.

Step 2: In case the feature is inactive, you will be prompted to activate the configure feature by pressing F12 and
Select Component list (BoM) and press enter.

TO CREATE AND RECORD BILLS OF MATERIALS:

Step 1: Gateway of Tally>Create>Stock Item>Press enter.

Step 2: In stock item creation screen, enter stock group, unit of measurement, set component lists as yes.

Step 3: Here enter Standard under BoM and press enter.

Step 4: Enter the components, units of measurement, item, godown

Step 5: Create a manufacturing journal with BoM by pressing F7 Alter the stock journal to manufacturing journal by
changing the voucher type.

BANK RECONCILIATION:

A bank reconciliation statement is prepared by a customer to determine and reconcile the items responsible for the
difference between bank balance shown in cash book and the bank balance shown in pass book as on a particular
date. In Tally Prime also, bank reconciliation is a process that explains the difference between the bank balance
shown in an organization’s bank balance and the amount shown in the organization’s own books at a particular point
of time.

AUTO BANK RECONCILIATION:

Banks which have auto reconciliation feature enables in ledger master, the button Alt+Q and Alt+R appear on the
right side button bar. The Alt+Q option is used for ‘Reconcile Unlinked’ and the Alt+R button is used for ‘Reconcile All
Unlinked’. In addition, the Alt+V button used to ‘Delete Unlinked’ and the Alt+W button used to ‘Delete All Unlinked’
appears on the button bar above the Info panel.

MANNUAL BANK RECONCILIATION:

Step-1 Gateway of Tally>Banking>Bank Reconciliation>and press Enter

Step 2: Select the required Bank Account from the List of Bank Ledgers and press Enter. It will show the Bank
Reconciliation screen of the selected Bank.

Button options in Bank Reconciliation Screen:

1. F2 (period): To specify a period for which the Bank Reconciliation screen is to be displayed.
2. F3 (Company): To change the company from Reconciliation screen.
3. F4 (Bank): To select the bank ledger for which the Bank Reconciliation screen is to be displayed.
4. Ctrl+B (Basis of Values): To configure the report values based on business needs.
5. Ctrl+H (Change View): You can display the details of a report in different views with additional details.
6. Ctrl+J (Exception Reports): You can view the exceptions related to the data displayed in the current report by
pressing Ctrl+J without closing the report.
7. Press Alt+H (Opening BRS): To open BRS to the unreconciled transactions.

VOUCHING AND ORDER PROCESSING

 Accounting process starts with identifying the debit and credit aspects of a transactions and entering them in
the books of entry through journal voucher. Journalizing is the mode of entry as per practice. Tally also follows the
same principles and allows entry of all transactions through vouching. Vouching is the simplest process of recording
transactions in Tally Prime.

There are specialized accounting voucher types for different types of transactions like payments, receipts,
sales, purchase, contra, debit note, credit note and so on to ease data entry. Again there are 24 pre-defined voucher
types in Tally Prime for accounting, inventory, payroll and orders.

PAYMENT VOUCHER:

1. Gateway of Tally>Vouchers>Press F5 (Payment)

2. If you want to change the voucher date, press F2 (Date)
3. In Account select Cash, which is already available.
4. Select the ledger for which you are making the payment and specify the amount.
5. In case the ledger is not available, press Alt+C to create Ledger on the fly. In Ledger Creation (Secondary)
screen, give ledger name Rent and select the group Indirect Expense in the Under field.
6. Under Amount, specify the expense amount.
7. Provide Narration, if any and accept the voucher or press Ctrl+A.
8. Press Page Up to view the voucher in alteration mode>Press Alt+P (Print)>Press Enter on Current.
9. Press I (Preview) to check the invoice before printing, if needed, or Press P (Print) to print.

RECIEPTS VOUCHER: When a proprietor starts business with capital or from bank he brings cash as capital, advance
payment received from any customer, Interest, commission etc. are recorded in this voucher. Cash received from
Cash sales will not be recorded here because it has to be recorded in sales voucher.

1. Gateway of Tally>Vouchers>Press F6 (Receipt)

2. If you want to change the voucher date, Press F2 (Date)
3. In Account field, select Cash, which is already available.
4. Select the ledger ( Rent, Commission, Interest etc) for which you are making the receipt and specify the
amount.
5. Under Particulars, select income ledger for which you are making this receipt.
6. In case the ledger is not available, Press Alt+C to create new ledger on fly.
7. Under Amount specify the commission amount.
8. Provide Narration, if any and accept the voucher. Press Ctrl+A

CONTRA VOUCHER:

Fund transfers within different accounts of your company, such as transfer from one bank account to
another, deposit of cash to bank account, cash withdrawals from ATMs or, withdrawals from banks using Cheque or
DD, can be recorded using Contra Voucher n Tally Prime. Such fund transfers from one account to the other- say
Cash A/c to Bank A/c vice versa. Keeping a record of the contra entries helps to track internal fund transfers done
month-wise or voucher-wise, for different business needs.

• Press Ctrl+H (Change Mode) to select Single and Double entry mode.

MEMORANDUM VOUCHERS:

Memorandum Vouchers are those vouchers which do not impact your books of account. These are used
when the actual purpose of an expense is not sure and can be converted to any voucher type. It will not impact the
accounts unless converted to a normal voucher type.

• Gateway of Tally>Vouchers>Press F10 (Other Vouchers)>Select Memorandum Voucher

• If you want to change the voucher date, press F2 (Date)
• Select the mode of payment.
• Debit Office Supplies Account
• Credit Cash Account.
• Accept the screen, Ctrl+A.
REVERSING JOURNAL:

Reversing Journals are those vouchers which do not impact your books of accounts. For example: on middle of
the year or on a particular date on June, you want to view the Balance Sheet as of today but June salaries are not
paid until the first week of July. Thus, there is a large liability, which would not be reflected in the Balance Sheet. To
overcome this, you enter a Reversing Journal Voucher dated 30th June, which would look like this:

• Gateway of Tally>Vouchers>Press F10 (Other vouchers)>select Reversing Journals.

• In case the voucher is inactive, you will be prompted to activate the Reversing Journal voucher type Select
yes.
• If you want to change the voucher date, press F2 (Date)
• Select By/Dr (Debit) side of the transaction.
• In By, select the Salary Account and specify the amount.
• Select the To/Cr (Credit) side of the transaction.
• In To, select the Provision for Salary Account.
• In Credit, specify the amount
• Provide Narration, if any and accept the voucher.
• This journal will continue upto 2 August and after that it will automatically reverse in the books.

PURCHASE ORDER:

Purchase Order is a type of order placed by a business entity in order to procure goods (with the specified
price and time) from a supplier. A purchase order can be easily generated in Tally and the same can be directly sent
to the supplier. When the order is placed with the suppliers for the supply of goods, the items, quantities, date of
receipt, and so on, details are given with the Purchase Order Number.

• Gateway of Tally>Vouchers>F10 (Other Voucher)>Select Purchase Order

• In case the voucher is inactive, you will be prompted to activate the Purchase Order voucher type.
Select Yes, to proceed.
• Party A/c Name: Select the party Name (Ramesh)
• Party details: Provide the Order, Receipt, and Import details as per your invoice requirements.
• If you do not see the Party Details screen, Press F12 (Configure), and set provide receipt, Order, and
Import details to Yes.
• Under Purchase ledger: write purchase
• Provide the stock item details (Business Stat Book). You can create the item on the fly by pressing
Alt+C.
• Mention Quantity, Rate, Amount.
• Provide Narration, if needed and accept the screen by pressing Ctrl+A.
PURCHASE ORDER BOOK:
A purchase order in Tally Prime is raised when there is a request for material. Purchase Order Book
displays the list of all purchase orders. You can view a summary of all the purchase orders till the date of
last order entered.

• Gateway of Tally>Display More Reports>Inventory Books>Purchase Orders Book.

• Press Alt+N (Auto Column) and select the options in the Auto Repeat Columns Sub-screen.
ALTERING PURCHASE ORDER:

• Gateway of Tally>Day Book>The Day Book screen appears.

• Click the desired purchase order that you want to modify. The Order Voucher Alteration
(Secondary) screen appears.
• Make the desired changes in the purchase order.
 • Press Enter Key until Accept.
DELETING A PRUCHASE ORDER:

• Gateway of Tally>Day Book>The Day Book screen appears.

• Click the desired purchase order that you want to modify. The Order Voucher Alteration
(Secondary) screen appears.
• Click the D: Delete button on the Bottom Button panel or Press Alt+D keys.
• Click Yes in the Delete?
PURCHASE ORDER OUTSTANDING:

• Gateway of Tally>Display More Reports>Statements of Inventory>Purchase Order Outstanding>

Choose the report to view.
• It displays the Date of the order, Order Number, Name of item, Ordered Quantity, Balance
Quantity, Rate, Value of the Ordered stock, Due on date for delivering the goods etc.
RECEIPT NOTE:
Receipt note is the record of details of goods that are received against the order from the supplier. This will
act as an acknowledgement for the supplier while it serves as a controlling document by comparing the
actual purchase order with that of the receipt note.

• Gateway of Tally>Vouchers> Press F10 (Other Vouchers)> Select Receipt Note.

• In case the voucher is inactive, you will be prompted to activate the voucher type. Select Yes.
• If you want to change the voucher date, press F2.
• Enter the Reference No. and Date.
• Select the party from whom you have received the goods.
• Select Order Nos. from the List of orders, if a purchase order exists for that supplier.
• Enter the required information in the Party Details screen.
• Press Ctrl+A to accept and return to the voucher screen.
• The stock item allocations screen appears, Select existing Tracking No.
• Select the items and include the item details like quantity, rate and any specific location.
• Provide Narration, if any, and accept the voucher.
REJECTION OUT: This voucher is used to record goods returned back that were rejected by the company
and sent back to vendor.

• Gateway of Tally>Vouchers>F10 (Other Vouchers)> Click on Show Inactive> Select Rejection Out
(Ctrl+F5)
• Press F2 to change the date:
• In the field of ledger Account select supplier.
• In Supplier Name & Address field select the same ledger.
• Select stock from the Stock Item List
• From the list of Tracking Numbers select.
• In the Item Allocations screen mention the quantity
• Skip the Narration field.
• Accept the Voucher.
PURCHASE VOUCHER:

• Gateway of Tally>Vouchers>F9 Purchase. Press (Ctrl+H): Change Mode and select Item Invoice
Mode.
 • Press F2 to change the date:
• Supplier Invoice No:
• Party’s A/c Name.
• Then after list of Tracking No. Sub screen appears, select 1 from the list.
• Accept the Party details Screen.
• In Purchase Ledger field select Purchase GST.
• Press enter and pass on from the entrie item list.
• Select SGST from the list of ledgers.
• Select CGST from the list of ledgers.
• Accept the voucher.
SALES ORDER:

• Gateway of Tally>Vouchers>F10 (Other vouchers).Select Sales Order

• In case the voucher is inactive, you will be prompted to activate the Sales Order voucher type.
Select Yes.
• Party A/c Name: Select the party name (Amit). Party Details: Provide the Dispatch through (VAN),
order and Buyer details as per your invoice requirements.
• Enter the Sales Order no. (Sales-001) for the voucher.
• Select the sales ledger (Sales Account) to allocate the stock items. Provide the stock item details.
You can create the item on the fly by pressing Alt+C.
• Enter the Due on date and Quantity. The Rate will be auto-filled, if available for the stock item.
• Select additional ledgers, like transportation charges, insurance or discount, if any.
• Provide Narration, if needed, and accept the screen. Or press Ctrl+A.
ALTER SALES ORDER:

• Gateway of Tally>Display>Day Book>F4: Voucher Type and select Sales Order.

• Alternatively, Gateway of Tally>Display More reports>Inventory Books> Sales Order Book.
DELIVERY NOTE:
The Delivery Note Voucher is used for recording goods delivered to a customer. A delivery note is a
document that accompanies a shipment of goods, and provides a list of the products and quantity of the
goods included in the delivery.

• Gateway of Tally>Vouchers>F10 Other Vouchers> Click on Show inactive> Select Delivery Note>
Activate Now set to Yes.
• Party’s A/c Name: (Amit)
• In Order details screen select 1 from list of orders.
• Accept Party Details Screen.
• In Sales Ledger filed Sales A/c.
• All items with Quantity, Rate & Amount will be displayed automatically on the basis of Sales Order.
• In item Allocation Screen, select 1 from the list of Tracking Numbers.
• Press Enter Enter and Accept the voucher.
• To View Delivery Note Vouchers: Gateway of Tally> Display More Reports> Statements of
Accounts>Statistics> Delivery Note.
REJECTION IN:
This voucher is used to record goods received back from a customer after rejection.
 • Gateway of Tally>Vouchers>F10 Other Vouchers> Click on Show Inactive>Select Rejection In>
Activate Now set to Yes.
• In the field of Ledger Account put the Customer’s Name & Address.
• Select item from the Stock Item List.
• From the list of Tracking Numbers select.
• In the Quantity field type 1 or 5 Nos. enter and accept the screen.
• Skip the Narration field.
• Accept the Voucher.
To view Rejection In Report: Gateway of Tally>Display More Reports> Statements of Account> Statistics>
Rejection In.
SALES VOUCHER:

• Gateway of Tally>Vouchers>F8 sales

• Party’s A/c Name: (Amit)
• In Dispatch details fill up Dispatch through, Dispatch Destination, Agent Name, Vehicle No etc.
• Then you have to fill Party Details.
• In Sales Ledger field select Sales A/c.
• In Item allocation window fill up the items, quantity, Rate etc.
• Press Enter and pass on from the entire item list.
• Select SGST from the list of ledgers.
• The amount of GST calculates automatically.
• Same way select CGST from the list of ledgers.
• Accept the voucher.