Preface

Presenting the most comprehensive self learning book on Tally. ERPQ an ideal book
for learning how to use Tally.ERP 9 efficiently.Numerous practical lessons with
answers and a number of a real life cases have been included in the book for
effective learning You will find numerous Frequently Asked Questions for Selfassessment Tally Contains many features and reports to cater to business of varied
sizes & verticals. So it is natural that each user will use only a small portion of such
rich and diverse functionalities,ratherthan the order of the software.With the help of
this book ,you will be able to master the usage of Tally.ERP 9.
Accounting is primarily a system of measurement and reporting of economic
events.which is based on the accounting equation.lt is the backbone of every
business process.Tally.ERP 9 with the advent of new technologies,accounting has
also advanced considerably.Tally is an 'integrated enterprise solution' that enables
the new age business to simplify thier day-to-day business dealings.Transactions
that materialise in this book, Feature-Wise Illustrations.
It Explains basic Accounting terms in a simple language and the application of Tally
in the accounting practice of these organisations.

Basics of Accounting

Introduction
Accounting is a finance support system that
</ Records transactions.
%/ Classifies transactions and events.
*/ Expresses transactions in monetary terms.
y/ Helps to monitor the financial performance and condition of the business.
T/ Helps to evaluate the business.
y/ Helps to establish controls for the business. - ccounting helps to arrive at the financial
position of the organisation at any point of time. The crganisation's financial status, as on a particular
date, is captured in the balance sheet, while financial oerformance for the year is summarised in a
profit and loss statement.

Accounting Principles, Concepts and Conventions

Accounting concepts form the basis for preparation of financial statements. Accounting statements,
whether they are external "financial accounts" or internally focused "management accounts,"
should reflect the "true substance" of the business and the results of its coeration. A number of
principles, concepts and conventions are used to ensure that accounting nformation is presented
accurately and consistently. Some of these concepts are briefly described in the following sections.

Revenue Realization

~he realization principle deals with how revenue is recognised by a business.

Revenue is recognised only when
^/ It is realised (when an asset is sold or exchanged). \f
It is legally due and -reasonably collectible.

Matching Concept

n an accounting period, the revenue that is reported must be set off against the expenses incurred to
generate that revenue. This gives a true picture of the profit earned in that period.

Accrual

Accrual is a method of accounting that recognizes revenue when earned rather than when due or
collected, and expenses when incurred rather than when paid. Thus, under accrual, transactions are
necorded on the basis of income earned or expense incurred, irrespective of actual receipt or payment.
For example, a seller bills the buyer at the time of sale and treats the bill amount as revenue, even
though the payment will be received later.
Note:The cash basis of accounting is a method wherein revenue is recognised when actually received,
'ather than when earned and expenses are booked when actually paid, rather than when incurred.
""his method is usually not considered to be in conformity with accounting principles and is, therefore,
used only in select situations such as for very small businesses.


Going Concern
Transactions are recorded on the assumption that a business wiii remain in operation long enough for
all of its current plans to be carried out.

Accounting Period

Financial statements are generated for relatively shorter periods, such as a year or a quarter, so that
performance can be measured and compared.

Accounting Entity

The business entity principle views the business as an entity separate from its owner(s). Consider
the example of a business owned by a person. When the owner of the business takes money from the
business for his personal use, the transaction is recorded as the owner receiving money from the
business, though the business and its assets belong to him.

Money Measurement

In accounting, all transactions are measured using a common unit of measurement, which is money.
Only transactions that can be expressed in terms of money are recorded.

Double Entry System of Book Keeping

Features of Double Entry System of Book keeping

Double Entry accounting is a system of recording transactions in a manner that maintains the
equality of the accounting equation. This accounting technique records each transaction as a debit
and a credit, where every debit has a corresponding credit and vice versa.
The following chart explains the way in which accounting transactions are recorded in the Double
Entry system and financial statements are prepared.

- e overall equation that needs to be kept in mind is Value of things /

Amount owed by the business = Amount owned by the business.
~- s "elationship is expressed in the form of the following accounting equation
Assets = Liabilities + Equity

Types of Accounts

~-e three types of accounts maintained for transactions are

y/ Real Accounts y/ Personal Accounts v^
Nominal Accounts

Real Accounts are maintained for assets owned or possessed by the business. Examples
include
y/ Buildings y/
Furniture
</
Cash

Personal Accounts are the accounts of persons with whom the business is required to
dear with. Examples include
y/ Suppliers y/
Customers y/
Lenders

Nominal accounts are accounts where income and expenses are recorded. Examples
include
y/ Sales
\/ Cost of goods sold
</ Salary expenses -rcounts can be broadly classified under
the following five groups
y/ Assets
y/ Liabilities
>/ Capital
y/ Revenue
y/ Expenses Assets, liabilities and capital are taken to the balance sheet. Revenue and
expenditure accounts are snown in the profit and loss statement.

Rules of Accounting

 Mode of Accounting

Voucher
A voucher is a document containing the details of a financial transaction. Examples include sales
invoice, purchase invoice, payslip, and rent receipt and so on.

Receipt Voucher

Transaction involving receipt of money is entering in the Receipt Voucher.

Invoice or Bill

When goods/ services are sold, a voucher needs to be created, which the customer (debtor) can use
as proof of purchase made. This document is called "invoice". Tally has facility to generate invoices
according to the business requirement.

Journals and Ledgers

A journal is a book in which business transactions are entered in chronological order. A record of a
single business transaction is called a journal entry. Every journal entry is supported by a voucher,
evidencing the related transaction.
In a journal, several entries are recorded, each of which are unrelated to the other. To know the total
effect of all the transaction, each journal entry must be moved/transferred to the account it relates to.
An account is a statement of transactions affecting any particular asset, liability, expense or income.
A ledger is the book in which all the accounts are maintained. A chart of accounts is a list of all account
titles used by an organisation. The chart of accounts of the business shows the categorisation and
grouping of its accounts.

Posting

Posting is the process by which information about transactions is transferred or moved to an account.

Accounting Period

A regular period of time, such as a quarter or a year, for which a financial statement is generated is
called an accounting period.

Trial Balance

A Trial balance is a list of the balances of all ledger accounts. It is prepared after all the transactions
are entered in the journal, journal entries posted to the ledger and the ledger accounts balanced. It is
the sum of balances of all real, personal and nominal accounts of the organisation. A detailed trial
balance has columns for
y/ Account name
\/ Debit balance
\/ Credit balance

Financial Statements

A financial statement is a periodic report prepared from the accounting records of a company. Financial
statements include the profit and loss statement (or income statement), the balance sheet, and the
cash flow statement. Financial statements are usually compiled on a quarterly basis or on an annual
basis.

For reporting convenience, the profit and loss account is divided into
y/ Trading account y/ Profit and Loss account The profit and loss
statement can be further classified into two levels
Gross Profit: Gross Profit is arrived at, after considering the core activities of the company.
It is expressed as
Gross Profit = Net Sales - Cost of Sales
Net Profit: Net Profit is arrived at, after considering the other administrative costs incurred for
the period. It is expressed as
Net Profit = (Gross Profit + Other Income) - (Selling and Administrative Expenses +
Depreciation + Interest + Taxes + Other Expenses)

Trading Account
The trading account is prepared to arrive at the gross profit earned by the organisation over a
specified period. This helps the organisation to arrive at the cost of its core activity and calculate the
direct profit from its operations.

Profit and Loss Account

The profit and loss account gives the net profit earned by the company, after considering all other
ncomes and expenses incurred over a period. This helps the company to monitor and control the
costs incurred and improve its efficiency. In other words, profit and loss statement shows the
performance of the company in terms of profits or losses over a specified period.
A key element of the Profit and Loss Account, and one that distinguishes it from a balance sheet, is
that the amounts shown on the statement represent transactions over a period of time, while the
terns represented on the balance sheet show information as on a specific date.
All revenue and expense accounts are closed once the profit and loss account is prepared. They will
not have an opening balance for the next accounting cycle.

Balance Sheet
The balance sheet is a statement that summarises the assets and liabilities of a business. The
excess of assets over liabilities is the net worth of a business. The balance sheet provides
information that helps in assessing
y/ A company's Long-term financial strength.
If A company's efficient day-to-day working capital management.
y/ A company's Asset portfolio.
\f A company's Sustainable long-term performance.
The balances of all the real, personal and nominal (capital in nature) accounts are transferred from
trial balance to balance sheet and grouped under the major heads of assets and liabilities. The balance
sheet is complete when the net profit/loss is transferred from the Profit and Loss account.

Getting Function with Tally.ERP 9

y/

Tally can be used to prepare invoices.

y/

Balance sheet can be viewed at any given point of time.

Profit and loss account can be prepared for any period.

y/

Stock valuations under multiple methods can be viewed and their effect on profit can be
estimated.

y/

Periodic movement of cash and funds in business can be viewed.

y/

Stock details can be maintained location-wise.

y/

Pending orders can be tracked.

y/

An account of pending invoices of orders delivered can be maintained.

y/

Pending payments against invoices can be followed up.

</

Slow moving and fast moving items can be identified and necessary remedial action can be taken.

y/

Stock can be identified batch-wise, if necessary.

y/

Expire date for inventory items can be ascertained.

y/

Using stock group and category, alternative product can be made available.

y/

Interest can be charged on payments pending beyond due dates.

y/

Physical stock can be reconciled with stock records.

y/

Different price lists can be set for different customer segment.

y/

Volume based discount and trade discount can be given to different customer segments.

>/

Credit period and credit limits can be fixed for consumers.

y/

Credit period avaHed from suppliers can be recorded.

y/

Free samples and replacement stocks can be accommodated.

y/

Use of Income & expenditure account instead of Profit & Loss account.

y/

Comprehensive solutions to the Organisations.

Creation of a Company
~~e first step to get started with Tally is to create a company in Tally. Go
to Gateway of Tally > Company Info >Create Company
se the following details to create a company. To navigate between the fields, you can use Enter,
Tab. the Arrow keys or the Mouse.
Company Creation ABC Trading Company

The completed Company Creation screen displays as shown.

Press Y or Enter to accept the screen and create the company, ABC Trading Company

Alteration / Deletion of a Company

Alteration of a Company

formation of the company created in Tally can be modified, at any time. ~z

alter details of a company
J
Go to Gateway of tally > F3: Comp Info > Alter /
Type 0 in the field Number of Decimal Places
Type 0 in the field Decimal Places for Printing Amounts in Words and accept the Company
alteration screen

Deletion of a Company

To Delete a company you have to load the company first. j

Gateway of Tally > (Alt + F3) F3 : Comp Info > Alter
*/
Press Alt + D for Delete Company

Go to

Then conformation message for delete company Press Yes

F11 Features & F12 Configurations

F11: Company Features

F11: Company Features is used to modify the various features of a company. This button is available
in most applications of Tally. The company features are specific to the current company only and thus
each company may have different features activated.
F11: Company features is divided into Accounting Features, Inventory Features and Statutory &
Taxation. The Company Features screen displays as shown.

Press Enter or the hotkey A to go to Accounting features screen.

F1: Accounting Features

The Accounting Features screen displays as shown:

By Default, Maintain Bill-wise details? is activated. Set this option to No

General
ntegrate Account and Inventory?: If accounts are not integrated with inventory, inventory vouchers
not have any impact on the balance sheet stock figures. Stock balances will be maintained
separately. However, if the accounts and inventory are integrated by setting this field to Yes, inventory
----- es automatically update the balance sheet stock figures. In other words, the perpetual inventory
stem Is activated.
- low Multi-Currency?: Tally is multi-currency enabled. If required, transactions can be recorded in
xxeign currency, invoices can be raised in US Dollars(or any other currency), bank accounts or
esgers can be maintained in foreign exchange.
Allow Multi-Currency is set to Yes,
S
/
v'

In the base currency symbol field, different currency symbol can be provided.
In the formal name field, the corresponding formal name for the base currency can be set.
The number of decimal places for the base currency can be altered. (Any number between 0-4).

Note: The multi-currency feature once set to Yes cannot be modified if it has been used.
Alow Invoicing? Invoicing is generally used for sale of stock where the details of the items sold are
isted. Without invoicing, the option for price list will not be available.
Enter Purchases in Invoice format ? If this field is set to Yes, purchase voucher can be created in
rvoice mode. The suppliers invoice can be entered in the same way as they physically appear. In
rvoice mode, purchases can be allocated to cost centers only when cost center classes are used.
Using the voucher mode of entry for purchase allows manual allocation of purchases to cost centers.
Maintain Bill wise Details?: This field has been set to Yes for it to be available for ledger accounts.
Each ledger account can then individually be set for the feature as required.

F2 : Inventory Features

To view or alter the inventory features,

Go to Gateway of Tally> F11: Features >F2: Inventory Features
The Inventory Features screen display as shown.

F3 : Statutory & Taxation Features

To view or alter the Statutory & Taxation

Go to Gateway of Tally > F11: Features > F3 : Statutory & Taxation
The Statutory & Taxation screen displays as shown.

To enable VAX-Enable Value Added Tax (VAT)?

Setto Yes Press Enter and Set /Alter VAT Details ?
Set to Yes.
Company VAT details screen displays. In the Company VAT Details screen, set the details as follows
and accept this screen.

isert Tax Information for your required fields.

F12: Configurations

F12: Configuration is used to configure settings for various applications available in Tally. Before
you start working on the company, it is advisable to configure it, by pressing the F12: Configure
button.
Configuration settings affect all companies maintained in the same data directory and setting
configuration for one company will affect other companies in that data directory.
Master Configuration
Master Configuration is used to set details that should appear in the account masters. This is available
in the accounts and inventory masters screen through the F12: Configure button and can be modified
as per requirement. Go to Gateway of Tally > F12: Configure > Accts/lnv.lnfo Ensure that the
master configuration settings are as shown.

Allow ALIASES along with names? An alias is another name for an account head. For those who
wish to continue with accounts code/this field can be used to enter codes. If any "alias" is given,
both "Name" and "alias" are available while entering a voucher, either of them can be used. Enter a
blank field if specifying alias is not necessary.
Allow ADVANCED entries in Masters?: If this field is set to Yes, fields requiring advanced settings
are displayed in the group creation and ledger creation screen.
The following fields are displayed in the Group Creation screen.
Group behaves like a Sub-Ledger? If this field is set to Yes, the group behaves like a
control account for the ledger it contains. Only the group balance will be displayed, not the
individual ledger balances.
Used for Calculation (eg. Taxes, Discounts)? (For Sales Invoice Entry): This field is set
to Yes, if the ledgers under this group have percentages for discounts/taxes to be used in
invoice entry. Only voucher entry in "invoice" mode uses the automatic calculation capacity.
Method to allocate when used in Purchase Invoice? In this field "allocation method" needs
to be assigned if capable. This means that when the user enters a purchase transaction
using the invoice mode the values given for the selected group's ledgers in the entry can be
apportioned or allocated based on the purchase value or the purchase quantity.

Net Debit/Credit Balances for Reporting?: If this field is set to Yes, amounts are displayed
as a net figure instead of separate debit and credit balances in the report.
Add Notes for Ledger Accounts?, Use ADDRESSES for Ledger Accounts?, Use
CONTACT DETAILS for Ledger Accounts?: These three fields are self explanatory. If these
are set to Yes, you can fill the mailing and related details along with the essential notes for a
ledger account head.
_r,
e other features will be explained as and when required in the later sections.

Voucher Configuration

~- s is used to configure features while making voucher

entry. Go to Gateway of Tally > F12: Configure > Voucher
Entry

Ensure that the voucher configuration settings are as shown in figure.

Configuration settings of one company will affect all companies maintained in the same data
directory.

Skip Date field in Create Mode (fast entry)?: If this is set to Yes, Tally goes directly to the
Dr or Cr

-eld, depending on the voucher type. If this is set to No, Tally goes to the date field. If there
are many entries to be made on the same date, it is advantageous to set this option to Yes, for
faster entry.

Show Inventory Details?: If this field is set to Yes, Tally shows the name of the stock item,
quantity.rate a^d value details.

Show table of Bill Details for Selection?: If this field is set to Yes, Tally displays the table
listing the rending bill reference.

Show Bill wise Details?: If this field is set to Yes, bill-wise details are available. Bill-wise

details are pertinent only for party accounts, i.e. ledger accounts classified under Sundry Debtors,
Sundry Creditors

and Branch/Division. Bill-wise details sub-screen do not come up for inventory vouchers. It is
relevant only for accounting purpose.

Bill-wise details need to set to Yes, if the user has to track each invoice to its conclusion and to
adjust the bills and payments, bill-by-bill. Information about outstanding analysis, ageing and analysis,
pending, due and overdue bills, and so on can be obtained from this features.

Expand into multiple Lines?: This is the additional field displayed when Show Bill-wise
Details is

activated. If this field is set to Yes, tally displays all bill-wise information fro example, the
due date based on the credit days given.

Show Ledger Current Balances?: If this field is set to Yes, Tally displays the current
balance of the ledger selected while the user makes the entry. This avoids the need to go to report to
get the balance information.

Show Balances on Voucher Date?: This is the additional option displayed when show
ledger current balances set to Yes. If this is set to Yes, then any voucher viewed in the alteration
mode will display the ledger balances on the voucher screen based on the voucher date and not
the current balance based on date of last entry.

Allow Cash accounts in Journals?: If this is set to Yes, Tally allows entry of transactions
which affect cash and bank account in journal voucher.

Use Cr/Dr instead of using To/By during entry?: If this field is set to Yes, Tally uses Dr/Cr
instead of the defaults To/By. Each voucher line displays a prompt of Dr or By for the Debit entries, or Cr
or To for credits. Depending on voucher type, Tally selects either Dr or Cr for the first prompt, which
the user cannot change. Thereafter, the prompt can be changed (if necessary) by typing over with a D
or C.

Warn on Negative Cash Balances?: If this field is set to Yes, Tally warns you in case the
cash ledger reaches the negative balance. Tally displays the credit cash balance in Red. The user
can accordingly decide whether to proceed with the entry.

Note: In Gateway of Tally > F12: Configure > Invoice/orders Entry. Accept
Supplementary Details? to No.

The other features will be explained as and when required in the later sections.

Setting up
Account
Heads

Chart of Accounts (Ledgers & Groups)

All financial entries are made using ledger account heads. Every transaction/voucher can be
'5 ated to a ledger account head to which it belongs. Ledgers which have transactions of the same
ad jre are classified under one Group.

A Group is a collection of ledgers which have similar transactions.

Tally offers flexibility in relation to building a chart of accounts. Ledger accounts can be
grouped together to create multiple ledger accounts. A single ledger account can also be created.
Reports = ^d statements reflect the classifications which have been made while creating the chart of
accounts. A: the highest level, accounts are classified into capital and revenue accounts, and then,
specifically, nto assets, liabilities, income and expenditure.

Primary Groups - 28
Out of the 28 pre-defined Primary Groups,
uNine primary groups, which are capital in nature, display in the Balance Sheet. 3 x
primary groups, which are revenue in nature, display in the Profit and Loss Account.

"ally has pre-defined ledgers for Cash (under Cash-in-hand group) and Profit and Loss account

jnder Primary group).

You can Drill down to a ledger name to alter its details by pressing enter.

At the highest level, accounts are classified into Capital or Revenue - and more
specifically ito Assets, Liabilities, Income and Expenditure. Alternatively use the keys Shift Enter
from the group lead to reduce the details. To record detailed transactions, you have to add further
ledgers, groups and sub-groups of your choice.

Creating a Groups

Creating a Single Group

Go to Gateway of Tally > Accounts Info. > Groups > Create under Single Group

The Group Creation screen is displayed as shown:

Name of Group
Enter the name of the Group to be created. For example "Administrative Expenses" in the name

field.
Alias
Enter an alias name to allow access to the group using the Alias in addition to its name or
leave it

blank. For example, for Administrative expenses, you can enter Office Expense or even an

alphanumeric code, say E001, as an alias

Under

Specify under which existing (Parent) group the sub-classification is required.

Note: If it is a new primary group, select Primary (requirement of a new primary group is very
rare, but

the option exists). Creation of new Primary Group is not allowed if Allow Advanced entries in
Masters

is set to No in F12: Configure. You can also create a new Parent Group by using Alt+C.

Tally has the flexibility of creating the related Masters from specified screens.

18
www.tallychampsclub.com

Creating Multiple Groups

y'ou can create Multiple Groups, by selecting this option.

Go to Gateway of Tally > Accounts Info. > Groups > Create (under Multiple Groups)

You can create any number of Groups under an already created/selected Group, In this
mode of group creation, the sub-groups will automatically inherit the characteristics of their parent
groups.

-----------------------------------------------------------------------------------------------------------------------------------------

,------------------------------------------------------------------------------------------------- You can also create any number of Groups under different Groups by selecting All Items in "Under
Group" field.

Under Group
Select the parent group under which you want the new groups to be created from the List of Groups.
The group selected is displayed in the Under Group field.

Name of Group Enter the

name of the Group.

Under
If you select any group other than All Items in the Under Group field, then this column is filled in
automatically with the selected Group name and the cursor skips this column. This speeds up data
entry.
If you select All Items in the Under Group field, the cursor does not skip this field and allows you to
enter the parent group of each of them.

Note: The default buttons available are Parent and Ledger and the rest of the options displayed are

based on the features enabled in F11 : F1 Accounting Features.

Altering / Deleting a Group

Single mode

3: to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)

5~ ect the Group that you wish to alter from the List of Groups. Make the necessary
changes and d ck Yes to save the changes

Multiple Mode

3: to Gateway of Tally > Accounts Info. > Group > Alter (under Multi Groups)

Select the Group for which you want to alter from the List of Groups. In Multi Group
Alteration screen, make the necessary changes and click Yes to save changes.

Deleting a Group

Go to Gateway of Tally > Accounts Info > Groups > Single / Alter

The Delete function is performed through the single alteration mode. You cannot delete
groups from the Multiple Alteration modes.

Select the Group to be

deleted. Press Alt+D to delete.

Note: You cannot delete a group if it is a reserved group or a group that has sub-groups or
ledgers in it. A new group created under primary will not be reflected in reports until you pass
masters/transactions for that group.

 Ledgers
Creating a Single Ledger : :

Gateway of Tally > Accounts Info.

: r --v. :-:e options Ledger from the Account Info menu

Select the options create from the Single ledger > Create
option.

Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it
all in. Press Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names.
The uniqueness check is made here itself.

Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its
recognition of a name. Thus, CST, C.S.T and C. S. T are all considered as same.

Tally.ERP 9 converts the first letter of all relevant words to upper case, which

helps you; speed up I

data entry.
.

Alias
Enter an alias name if required. You can access the Ledgers using the original name or the
alias I name.

Under
All accounts must be classified under their appropriate Groups. Select the Group under
which the 1 Ledger is created from the List of Groups. (To create a new Group from this field press [
Alt + C ]). A wrong classification would affect the treatment of the Ledger account in final statements
and during I voucher entry.

You can, alter a Ledger account to change its group classification at any time. Refer
Importance of I Grouping and Accounting Classifications: for more details in Grouping.

Opening Balance
If you have is an existing company whose books you are entering into Tally.ERP 9, Opening
Balance would be applicable in circumstances where the Ledger is an asset or a liability and if it has a
balance j in the account as on the date of beginning of books in Tally.ERP 9.

Creating Multiple Ledgers

fou can create multiple Ledgers at a time in this mode. This will save the time of the
user. 2: to Gateway of Tally > Accounts Info > ledgers > Multiple ledgers > Create

Under Group
Se ect the name of the group under which you want to create the Ledgers from the
List of Groups.

Eelow this field, the other fields are arranged in a table. The cursor rests at the field
Name of Ledger.

The other fields in the column are:

Sr.No

This-is is auto generated.

Kame of Ledger

Enter the name of the Ledger.

Under
you select All Items in Under Group field, you have the option to select the group in this
column. You

can even create a new group from this field by pressing Alt+C. If you have selected
any other Group

-Under Group, the selected group in Under Group gets displayed here automatically
and the cursor

Skips this column.

Opening Balance

his is the balance remaining when you first enter your books on Tally.ERP 9, i.e., the date
of beginning i books. If you have opted to maintain balances bill-by-bill, you must give the
bill details. (Refer Creating a Ledger- Advanced Usage for more details on this)

Dr/Cr

Scecify whether the Opening Balance is Debit or Credit. Tally.ERP 9 follows the
normal accounting :rincipals of accounting. (Refer Creating a Ledger - Advanced Usage

for more details on this).

Displaying / Altering a Ledger

Alteration

Information under Display and Alter is the same. Display option does not permit any
modification.
Alter option permits you to alter the information.
You are allowed to alter any information of the ledger master with the exception of the Closing
Balance

of a ledger account, if any, other than closing balance of accounts under the group Stock-inhand.

Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter

Modification of Account Ledgers is possible under Single Ledgers as well as Multiple Ledgers
option.

However under Multiple Ledgers, all the fields are not available for alteration

Deletion

You can delete the ledger if no vouchers have been created under this
ledger. Go to Gateway of Tally > Accounts Info > Ledgers > Alter > Press
Alt+D

If you want to delete a Ledger for which Vouchers have been created, then you have to first
delete all the Vouchers from that Ledger and then delete the Ledger Account.

Multiple Godowns

A place where stock items are stored is referred to as Godowns. You can specify where the

stock terns are kept, e.g. warehouse, shelf or rack, etc, and obtain stock reports for each Godown,
and account for movement of stock between locations/Godowns. You can create Godowns by
activating Maintain Multiple Godowns" in F11: Features.
To Activate Multiple Godowns
Activate the option in F11: Features: F2: Inventory

Features Maintain Multiple Godowns Set to Yes

.-eate following Godowns Storage Godown Office Godown ": Create

Godowns: : Gateway of Tally > Inventory Info > Godowns > Single
Godown > Create In the Name field type Storage Godown Skip the alias
Under Primary

In the Same way Create Office Godown.

Stock Groups

5 milar to Groups in Accounting Masters - these are provided for the purpose of classification
of stock items. Classification is done based on some common behavior. Grouping stock items
enables easy identification and reporting of stock items in statements. For example, items of a
particular brand zzn be grouped together so that you can get the inventory details of all items of that
brand. It is NOT e:essary to group items. ~o Create Stock Groups Create following Stock
Groups 1.
Nokia 2.
Samsung Go to Gateway of Tally > Inventory Info > Stock Groups
> Single Stock Group > Create - :ne Name field type Nokia 5<ip the alias _-der Primary Z = "
Quantities of Item be Added Set to Yes Accept the Screen.

Same way Create Stock Group of Samsung.

Stock Categories

This is a feature, which offers a parallel classification of stock items. Like Stock Groups,
classification
is done based on some similar behaviors. The advantage of categorizing items that Tally allows

you to
classify stock items (based on functionality) together - across different stock groups, enabling

you to
obtain reports on alternatives or substitutes for a stock item.
To Activate Stock Categories
Activate the option in F11: Features: F2: Inventory Features
Maintain Stock Categories set to Yes.

To Create Stock Categories

Go to Gateway of Tally > Inventory Info > Stock Categories > Single Stock Categories >

Create
1. In the Name field type Basic.
2. Skip the alias
3. Under Primary

Same way Create two more Stock

categories
Multimedia
Internet

Units of Measure

STOCK Items are mainly purchased and sold on the basis of quantity. The quantity is
measured by Units, In such a case, it is necessary to create the Unit of Measure. Units of Measure
can be simple Units such as nos., meters, kilograms, pieces, or compound units, e.g. box of 10
pieces. Create the Units of Measure before creating the Stock Items.

To Create Unit of Measure

1: o Gateway of Tally > Inventory Info > Units of Measure > Create

In the Type field select Simple.

In the field of Symbol type nos.

In the Formal Name type Numbers.
In the field of Number of Decimal
Places : 0

Type

"Tally has the option to create simple units as well as compound units. Examples of Simple
units are pcs', etc. Compound Unit is a combination of two simple units. Example of Compound
units is Ibex of 10 pes' a combination of two simple units, 'pes' and 'box'.

Symbol
This is the symbol by which we will identify the stock item. For example, 'pes' to indicate 'pieces'.

Formal Name
This is the complete or formal name of the symbol. Specifying the formal name is useful if you
wish to consolidate data of different companies where the symbols might be the same but are
assigned to different Units. In such a case - the formal name will be used to match them.
Consolidating data of different companies will be covered in Volume 2.

Number of Decimal Places

If the unit will be used in fractions, say for a kilogram you may have to use grams as well,
give the number of decimal places. For kilograms, you would give 3 decimal places to
accommodate up to 999 grams. Hence, a measure, 1 kilogram 865 grams will be 1.865 kilograms.
For units like numbers, you do not normally want a decimal place and you can specify 0 in such
cases. You can specify 0 to

4 decimal places.

Value Added Tax (VAT)

Value Added Tax (VAT) is an indirect tax on goods, introduced in lieu of sales tax, to ensure
transparency and greater compliance with statutory norms. The basic premise of VAT is to
tax the true value' added to the goods, at each stage of the transaction chain. This ultimately
reduces 1 Tax paid to the government 1 Cost / tax passed onto the customer. VAT is a multipoint tax as against sales tax, which is a single-point tax. Under the sales tax regime, the
"value' of goods to be taxed at each stage is computed as basic cost + profit margin + sales
tax :a d at the earlier stage. VAT does away with the cascading effect of tax on tax, by allowing a
set off for inout tax, i.e., tax paid at the earlier stages on purchases. Therefore, it is an efficient, globally
acceptable and easy to administer taxation system.

T0 Activate the Option of VAT (Value Added Tax)

F11: Features > F3: Statutory & Taxation Enable
Value Added Tax (VAT) Set to Yes press Enter and
Set /Alter VAT Details Set to Yes

Company VAT details screen displays. In the Company VAT Details screen, set the details as
follows and accept this screen.

Stock Items

Stock item is the primary inventory entity. Stock items are used while recording receipts and
issues of -iventory. This is the lowest level of information of the inventory. Each item that is required
to be accounted, needs to be created a stock ledger account is created for each item and Tally calls
this account Stock Item.

To Create Stock Items Go to Gateway of Tally > Inventory Info. > Stock items > Create

Under Single Stock Item

In the Name field type- Nokia 1202

Under - Select Nokia from list of Stock Groups.
In the field of Category Select Basic Category.
In the field of Unit of Measure Select nos.
In the field of Rate of VAT

type 4%.
I
Skip the all other fields.

Accept the Screen & the screen appears as

ne way create all other Stock Items. Create the following Stock
Items

To create following Stock Items

Buttons available in Stock Item Creation Screen :

VAT Ledger Creation

;-eate Ledger >Purchase @ 4 % (Under Purchase Account)

3: to Gateway of Tally > Accounts Info > Ledger > Create to view the ledger creation
screen.

Name: Purchase @ 4 %

Under: Purchase Accounts

Inventory Values are affected :

Yes Used In VAT Returns? Yes

VAT/Tax Class : Purchases @ 4%

Acdcept the screen

Go to Gateway of Tally > Accounts Info > Ledger > Create to view the ledger creation
screen.
1. Name: Input VAT @ 4 %
2. Under: Duties & Taxes
3. Type of Duty/Tax: VAT
4. VAT/Tax Class : Input VAT @ 4%

 Inventory Values are affected : No

Percentage of Calculation : 4%
Method of Calculation : On VAT Rate
Rounding method : Not Applicable

C-eate Ledger > Sales @ 4 %( Under Sales Account)

:o Gateway of Tally> Accounts Info > Ledger > Create to view the ledger creation

screen. Name: Sales @ 4 % Under: Sales Accounts

Inventory Values are affected : Yes
Used VAT Returns? Yes

VATTax Class : Sales @ 4 %

Accept the Screen


Go to Gateway of Tally> Accounts Info > Ledger > Create to view the ledger creation
screen.
1. Name: Output VAT @ 4%
2. Under: Duties & Taxes
3. Type of duty/Tax: VAT
4. VATTax Class : Output VAT @ 4%

r
10.

Inventory Values are affected : No

Percentage of calculation : 4%'

Method of Calculation : On VAT

Rate Rounding method : Not
Applicable

Order Processing

Order Processing refers to placing orders with suppliers for purchasing from them OR
receives orders from customers for the purpose of selling.

In Tally, Order Processing is linked to Inventories. You can track the order position of a stock
item; know what goods that were ordered have arrived, whether you have fulfilled the orders on time
and what the delay, if any is.

In this module, you learn how to record purchase orders, and to call the orders while
entering a purchase invoice and likewise with sales orders and sales invoices. You will also learn how
to display outstanding orders position and the effect of orders on stocks.

Remember, orders do not affect financial records nor do they update inventories.

In F11: Features > F2: Inventory Features Activate the following

Activate Allow Purchase Order Processing and Allow Sales Order Processing to Yes.

Purchase Order Processing

010

ABC Trading Company Place an Order to Overseas Telecommunication

10/04/2
for the following items. Order No. PO/001

Quantity

Rate

VAT Rate

Nokia

10 nos

Rs. 1,250

4%

Nokia

10 nos

Rs.1,300

4%

Nokia

10 nos

Rs.9,000

4%

E63

Nokia E

10 nos

4%

1202

1203

Items

71

Rs.14, 800

: Gateway of Tally > inventory Vouchers > Press A!t+F4 for Purchase Order
Voucher screen Click on F12:Configure and ensure that "Complete
Accounting Allocations in Order/ Delivery Note" is set to YES and accept the
screen. Use F2: Date and make the Purchase Order date: 10/04/2010. Create
ledger of Overseas Telecommunication under Sundry Creditors. Party's A/c
Name: Overseas Telecommunication. Skip Party Details Screen. Order No:
PO/001. Name of the item: Nokia 1202 (Once the name is given the Item
Allocations sub-screen for Nokia 1202 displays). In the Item Allocation Sub
screen fill up details - Due on: 20/04/10 - Then after in the field of Godown ,
Select Storage Godown from the list of Godown, In the field of Quantity type 10
nos., in the field of Rate type Rs.1250, Amount will display automatically.

Then after the Screen of Accounting Details for Nokia 1202 appears, Select Purchase
@ 4% from the list of Ledgers.

10. Then after select the Next item from the list of Items and make the entry in the same way in the
same Voucher.
10. Show Statutory Details Set to No.
11. Skip the Narration field.
12. Press Enter or Y to accept the Voucher.

As screen Appears Following:

Similarly do this
transaction:

Alter a Purchase Order

You can alter a Purchase Order by displaying it from a variety of places but is easier
through the Purchase Orders Book or the Day Book.

Gateway of Tally > Display > Day Book > F4: Chg Vch and select Purchase Orders
OR Gateway of Tally > Display > Inventory Books > Purchase Order Book

Press AK+F2 to Change Period: From 01/04/2010 To 30/04/2010

Receipt Note F11: Features F2: inventory Features

-otivate Use Tracking Numbers (Delivery/Receipt Notes):

Yes

1.
Gateway of Tally > Inventory Vouchers > (Alt + F9)
Receipt Note
Press F2: Change the Date: 15/04/2010.
In the Ref field type RN/001.
Party's A/c Name: Overseas
Telecommunication

: Then after list of Order screen appears, select PO/001

from the list.
6.
Select the Item Nokia 1202
As screen Appears Following

7. Then after Item Allocation Screen appears, in the field of

Tracking No. RN/001

3. From the list of Orders select PO/001

I. Godown, Quantity, Rate, &Amount will be

display automatically.
10.
In the Accounting Details Screen Purchase @
4%.

II. In the Same way make the entry for all the items.
12. Show Statutory Details Set to No.
13. Press Enter, Enter & Accept the Voucher.

14. As screen Appears FoHowina:

15.

16. Similarly, make another Receipt note entry

17.

18. F11: Features F2: Inventory Features Use

Rejection Inward/Outward Notes -Yes

19. As screen Appears Following

20.

Gateway of Tally > inventory Voucher > Rejection

Out (Alt -* F6)
22. Press F2 to change the date: 19/04/2010
23. In the field of ledger Account select Overseas Telecommunication.
24. In Supplier Name & Address field select the same ledger.
25. Select Nokia 1203 from the Stock Item List.
26. From the list of Tracking Numbers select RN/001.
27. In the Item Allocations for: Nokia 1203 Screen in the Quantity field type 2
nos.
28. I Skip the Narration field.
21.

29.

Accept the Voucher. -:

purchaseVouc
>c-een Appears Following:
30.

31.
33.
D
ate
35. 22 04

2010
37.

32.

Transaction
36. Overseas Telecommunication raised an invoice of Purchase against PO/001.

34.

CMmay of Tally > Accounting Voucher > F9 Purchase (As

Invoice) Press F2 to change the date: 22/04/2010. Supplier
Invoice No. OTC-01. Party's A/c Name: Overseas
Telecommunication. Then after list of Tracking No. sub screen
appears, select RN/001 from the list. In the Party details Screen
On the Basis of tracking PO/001 & RN/001, It takes the items with
the Quantity, Rate & Amount automatically. Press Enter and
pass on from the entire item list. Then after Press one more
Enter. Select Input VAT 4% from the list of ledgers. The
Amount of VAT calculates automatically. Show Statutory
Details -No. Accept the Voucher.

38.

As screen Appears
Following:

Stock Transfer

When there is more than one Godown or Locations are used, Stock Journal is useful to
recoi Transfers of stock from one location or department to another or to an external agency.
39.

40.

1. Gateway of Tally > Inventory Vouchers > Stock Journal(Alt + F7)

2. Press F2: To change the Date: 24/04/2010
3. There are to portion Source(Consumption) & Destination ( Production)
4. In the field of Source (Consumption) fill up the following details.
5. In the Name of Item field Select Nokia 1202, select Storage Godown from the list of Godown s
6. In the Quantity field type 10 nos.
7. Rate & amount will be displays automatically.
8. Then after select the other item Nokia 1203, and enter the quantity 8 nos(2 items are rejected
9. Same ways select all the items.
10. In the field of Destination (Production) fill up the following details.
11. In the Name of Item field Select Nokia 1202, select Office Godown from the list of Godc
12. In the Quantity field type 10 nos.
13. Rate & amount will be displays automatically.
14. Then after select the other item Nokia 1203 and same way select all the items.
15. Skip the Narration field
16. Accept the Voucher.

17. As screen Appears Following:

18.

19.

>r- tarly make the

20. Transaction
i: XJ Gateway of Tally > Inventory Vouchers > Press Alt+F5 for Sales Order Voucher

screen
Use F2: Date to change the date: 26/04/2010
Create ledger of Universal Exports under Sundry Debtors
Party's A/c Name: Universal Exports
Skip the despatch details screen and Order No: SO/001.
Name of the item: Nokia 1202 (Once the name is given then Item Allocations subscreen for Nokia 1202 display.)
26.
In the Item Allocation Sub screens fill up details - Due on: 06/05/2010 -Then after in
the field of godown, Select Office Godown from the list of Godown, In the field of Quantity

21.
22.
23.
24.
25.

Sokes Order
Processing
type 5 nos., in the field of Rate type Rs.1350, Amount will display automatically.

27.

28. 7.

Then after the Screen of Accounting Details for Nokia 1202 appears, Select
Sales @4S
29.
from the list of Ledgers.

30. As screen Appears Following :

31.

8. Then after select the Next item from the list of Items and make the entry in the same way in Hi
same Voucher.
9. Show Statutory Details Set to No.
10. Skip the Narration field.
11. Press Enter or Y to accept the Voucher.

I s screen Appears
Following

12.

Vier a Sales Order

13.

xi can aiter a Sales Order by displaying it from a variety of places but is easier through the

Sales
14.
15.
16.
17.

. : e -3 Book or the Day Book.

jateway of Tally > Display > Day Book > F4: Chg Vch and select Sales Orders OR
I splay > Inventory Books > Sales Order Book.
- ess Alt+F2 From 01/04/2010 To 30/04/2010

18.

Delivery Note

19.

Gateway of Tally> Inventory Vouchers > (Alt + F8) Delivery

Note In F12: Configuration: Accept Supplementary Details: No. Press
F2: Change the Date: 28/04/2010.
21.
In the Ref field type DN/001.
22.
Party's A/c Name: Universal Export
23.
Select the Item: Nokia 1202 from the list of Item.
24.
From the List of Tracking No select DN/001.
20.

8. From the list of Orders Select SO/001

9. From the list of Godowns select Office Godown
10. Quantity, Rate & Amount will be display automatically, on the basis of Sales Order.

25.

11. In the Accounting Details Screen Sales @ 4%

12. In the Same way select Nokia E 71 and select the particular Tracking no. and Order no.
13. Show Statutory Details Set to No.
14. Press Enter to Accept the Voucher.
26.

As screen Appears Following

27.

28.

ir-ilarly, Perform following Transaction

29.

31.
Transaction
Date
ABC Trading Company delivered the Samsung S3310 & Samsung Corby to
32. 29/4/ 33.
2010 Satyam Limited against the order No.SO/002(Ref no DN/002)
30.

34.
35.

-ejection In

37.
Transaction
Date
38.
30/4/ 39.
Universal Exports return 1 nos of Nokia E71 from SO/001 to ABC Trading
2010
Company.
36.

40.
41.
42.
43.
44.
45.
46.
47.
48.
49.

Gateway of Tally > Inventory Voucher > (CTRL + F6)

Press F2 to change the date: 30/04/2010
In the field of ledger Account select Universal Exports.
In Customer's Name & Address field select the same ledger.
Select Nokia E71 from the Stock Item List.
From the list of Tracking Numbers select DN/001.
In the Quantity field type 1 nos enter and accept the screen
Skip the Narration field
Accept the Voucher.

m screen Appears Following:

50.

51.

52.

Sales Voucher
53.

56. Date
30/0
4/2010

54.

Transaction

57. ABC Trading Company raised an invoice to Universal Exports of Sales against

the DN/001.
60.
Go to Gateway of Tally > Accounting Voucher > F8
Sales In F12: Configuration: Accept Supplementary Details:
YES
1. Press F2 to change the date: 30/04/2010.
2. Ref. UE-01.
3. Party's A/c Name: Universal Exports.
4. Then after list of Tracking No. sub screen appears, select DN/001 from the list.
5. On the Basis of tracking DN/001, It takes the items with the Quantity ,Rate & Amount
automatically.
6. Press Enter and pass on from the entire item list.
7. Then after Give one more Enter.
8. Select Output VAT @ 4% from the list of ledgers.
9. The Amount of VAT calculates automatically.
10. Show Statutory Details -No.
11. Accept the Voucher.
As screen Appears Following:

61.

62.

63.

64.

Similarly Do this transaction

65.

67. Date
30/4/
2010

Transaction
68. ABC Trading Company raised an invoice to Satyam Limited of Sales against
the DN/002.(Ref No-SL-01)
66.

55.

69.

Invoicing

What Is Invoicing?
71.
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the
products, quantities, and agreed prices for products or services the seller has provided the buyer.
An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a
maximum amount of days to pay these goods and are sometimes offered a discount if paid before.

70.

In the rental industry, an invoice must include a specific reference to the duration of the time
being billed, so rather than quantity, price and discount the invoicing amount is based on quantity,
price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual
hours, days, weeks, months etc being billed.
72.

From the point of view of a seller, an invoice is a sales invoice. From the point of view of a
buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term
invoice indicates money is owed or owing. In English, the context of the term invoice is usually used
to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an
invoice from them" (we owe them money).
73.

Tally Provides us different Voucher Types like sales, Purchase, Payment, Receipt, Journal,
Contra etc. if you want to get different Invoice like Tax Invoice & Retail Invoice, you can get it by
creating Voucher Type of TAX INVOICE & RETAIL INVOICE.
74.

75.

TAX Invoice

Voucher Type Creation

1. Gateway of Tally > Accounts Info > Voucher Type > Create.
2. In the Name field type TAX Sales.
76.
3.
In the field of Type of Voucher select Sales from the list of Voucher
Types.
.
Method of voucher numbering: Automatic
77.
5
Default Print Title type TAX INVOICE.
78.
z
Is Tax Invoice set to yes.
79.
In the Declaration field type your Terms & Conditions of your Business.
80.
I Skip the other fields.

81.

Same way you can create Voucher Type of RETAIL

Sales Default Print Title: RETAIL INVOICE Is Tax Invoice:
No
82.

With the help of that at the time of Sales Entry, Different options of Voucher Types
shown. Gateway of Tally > Accounting Voucher > F8 Sales
83.

84.

85.

1. Gateway of Tally > Accounting Voucher > F8 Sales > TAX Sales
2. Press F2 to Change the Date: 05/05/2010.
3. In the Ref field type:OT-01
4. Create a ledger of Omkar Traders under Sundry Debtors with the help of (ALT + C)
5. In the Name of Item field select Samsung Star 3G from the list of item.
6. From the list of Tracking No. select Not Applicable.
7. From the list of Orders select Not Applicable.
8. From the list of Godown select Office Godown.
9. In the field of Quantity field type 5 nos.
10. In the Rate field type Rs.9800.
11. Total Amount will be display automatically.
12. In the screen of Accounting details select Sales @ 4%.
13. Give one more Enter.
14. Then after select Output VAT @ 4% from the list of Ledgers.
15. Amount will be display automatically.
16. Show Statutory Details -No.
17. Skip the Narration Field
18. Accept the Voucher.
86.
Give Page up key to use last Entry.
87.
Press (Alt + P)
88.
Press F12 and activate all VAT related options.
89.
Accept the Screen.
90.
rn

CC

tAfiAfiAf fallwrhamnerliih

91.

As screen Appears
Following

92. Same way you can get Retail Invoice.

93. Note: We can Provide TAX INVOICE to the Register Dealer who have TIN No.(TAX

Identification No)We can only provide Retail Invoice to the Unregistered dealer not having TIN
No.
94.______________________________

95.

Batch Wise Details

Batch details are used to identify the movement of the inventory in batches or lots. Many
organisations also purchase in lots in order to monitor the result of the lots purchased individually.
Hence, Tally has used the term Batch/Lot.
96.

Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the
date of expected time when it cannot be used for any purpose (perished or expired).
97.

Tally handles both the situations when you know both the manufacturing date and the expiry
date to take the decision as required.
98.

99. Activate Batch-wise Details

Batch-wise details are given for maintaining batch information pertaining to stock items. The
various options are activating batch-wise details, setting manufacturing date and expiry date.
Manufacturing date and expiry date options can be used only in accordance with batch-wise details as
per requirements.
100.

101.

Tally walk-through to Activate batch-wise details

102.
103.
104.

Go To Gateway of Tally.
F11: Features F2: Inventory Features.
"Maintain Batch wise details": YES

105.

1.
2.
3.
4.
5.

Gateway of Tally > Inventory Info > Stock Items > Create > Nokia N97.
In the Name field type Nokia N97.
In the field of Under Select Nokia from the list of Group.
In the Category field select Internet from the list of Categories.
In the Unit field select nos. from the list.

6. E
7.

8.

Maintain in Batches sets Yes.

Track Date of Mfg :
No In the Rate of VAT type:
4%.
I
Skip all other fields.

9.

As screen Appears Following

10.

- e- ng Batch-wise Details for Purchase

voucher

11.
12.
13.
14.
15.

Gateway of Tally > Accounting Voucher > F9 Purchase.

Press F2 to change the Date: 05/04/2010.
In the Supplier Invoice No type DC-01.
Create a ledger of Darshan Communication under Sundry Creditors.
In the field of Party's A/C Name select Darshan Communication from the list of

ledgers.
16.
17.
18.
19.

In the field of Name of Item select Nokia N97 from the list of Items.
Then after Sub screen of Item Allocation for Nokia N97 appears.
In the Tracking No. field select Not Applicable.
In the field of Order No. select Not Applicable.

20.
21.
22.
23.
24.
25.

In the field of Godown select Office Godown.

In the field of Batch/Lot No. select New Number.
Define Batch -01 for the list of Active Batches.
In the Quantity field type 10 nos.
In the Rate field type Rs.15, 000.
Amount will be display automatically.

26. As screen Appears Following:

27.

16. In the sub screen of Accounting Details, select Purchase 4% from the list of ledgers.
17. Give one time more Enter.
18. Select Input VAT 4% from the list of Ledgers.
19. Amount of VAT will be display automatically
20. Show Statutory Details to No.
21. Skip the Narration field.
22. Accept the Voucher. As screen
Appears Following:

28.

29.

ate

30.

Transaction

31.

2010

28/04/ 32.
Purchase 10 nos of Nokia N97 from A-One Communication on rate of Rs.
15,200 For VAT Rate 4%.(For Showing Batch-02)
33. Gateway of Tally > Accounting Voucher > F9 Purchase.
34. Press F2 to change the Date: 08/04/2010.
35. In the Supplier Invoice No type AO-01.
36. Create a ledger of A-One Communication under Sundry Creditors.
37.
In the field of Party's A/C Name select A-One Communication from the

55.

56.

list of ledgers.
38.
In the field of Name of Item select Nokia N97 from the list of Items.
39.
Then after Sub screen of Item Allocation for Nokia N97 appears.
40.
In the Tracking No. field Not Applicable.
41.
In the field of Order No. select Not Applicable.
42.
In the field of Godown select Office Godown.
43.
In the field of Batch/Lot No. select New Number.
44.
Define Batch -02 for the list of Active Batches.
45.
In the Quantity field type 10 nos.
46.
In the Rate field type Rs.15,200
47.
Amount will be display automatically.
48.
In the sub screen of Accounting Details, select Purchase 4% from the
list of ledgers.
49.
Give one time more Enter.
50.
Select Input VAT 4% from the list of Ledgers.
51.
Amount of VAT will be display automatically
52.
Show Statutory Details to No.
53.
Skip the Narration field.
54.
Accept the Voucher.
Date
57. Transaction
58. 10/4/

2010
60. I

Safe 5 nos of Nokia N97 (Batch-01) from Universal Exports on rate of

Rs. 16,000 For VAT Rate 4%.

59.

Gateway of Tally > Accounting Voucher > F8 Sales.

61.
press F2 to change the Date: 10/04/2010. in the Ref field
type UE-02 Inthe field of Party's A/C Name select Universal Exports
from the list of ledgers. In the field of Name of Item select Nokia N97
from the list of Items. then after sub screen of Item Allocation for Nokia
N97 appears. in the Tracking No. field Not Applicable. In the field of
Order No. select Not Applicable. In the field of Godown select Office
Godown.

62.

10. In the field of Batch/Lot No. select Batch-01

11. In the Quantity field type 5 nos.
12. In the Rate field type Rs.16,000
13. Amount will be display automatically.
14. In the sub screen of Accounting Details, select Sales 4% from the list of ledgers.
15. Give one time more Enter.
16. Select Output VAT 4% from the list of Ledgers.
17. Amount of VAT will be display automatically
18. Show Statutory Details to No.
19. Skip the Narration field.
20. Accept the Voucher. As
screen Appears
Following:

63.

64.

Different Actual & Billed Quantities

need for different actual and billed quantities may arise in several instances. For

65.

example:
66. Extra inventory is sent to cover up for any stock that reaches in damaged condition,

~ ventory sent as extra samples i-.ock dispatched to the customer as quantity

discount, etc.
67.
~'- r ,se are only a few of the examples of why different actual and billed quantity is used.

"ailiy Walk-through to "Use Different Actual and Billed Quantities"

68.

ate "Use Different Actual and Billed Quantities"

"eatures F2: Inventory Features . D fferent Actual &
Billed Quantity Set Yes.
69.

70.

71.

72.

Date
73. 12010
75.
82.

Transaction

Goods sold to Omkar Traders On Sale of 5 mobile, 1 mobile is given

free of Cost.
76. Name
77. Actu 78.
Bi 79.
R
80. VAT 81.
Amount
al
lled
ate
Rate
83. Nokia
84. 06
85.
05 86.
9
87. 4%
88. 47,500
74.

E63
nos
noS
500
89. Gateway of Tally > Accounting Voucher > F8 Sales.
90. You'll notice that the Quantities column is divided into two columns, namely Actual
and
91. Billed as per this screen:
92. Press F2 to change the Date: 08/04/2010.
93. In the Ref field type OT-002
94. In the field of Party's A/C Name select Omkar Traders from the list of ledgers.
95. In the field of Name of Item select Nokia E63 from the list of Items.
96. Then after Sub screen of Item Allocation for Nokia E63 appears.
97. In the Tracking No. field Not Applicable.
98. In the field of Order No. select Not Applicable.
99. in the iieid of Godown sefect Office Godown
100.
In the Actual Quantity field type 06 nos.
101.
In the Billed Quantity field type 05 nos.
102.
In the Rate field type Rs.9500
103.
Amount will be display automatically.
104.
In the sub screen of Accounting Details, select Sales 4% from the list of
ledgers.
105.
Give one time more Enter.
106.
Select Output VAT 4% from the list of Ledgers.
107.
Amount of VAT will be display automatically
108.
Show Statutory Details to No.
109.
Skip the Narration field.
110.
Accept the Voucher.

111.__________________________________________________________________________________
___________________________________________________________________________________ =

As screen Appears Following

112.

113.

114. Note: Actual Quantity affects the Inventory Books & Billed Quantity will reflect in

AccountinJ Book.

115.

Zero Valued

Entries Zero Valued Entries in Vouchers

Zero valued entries in vouchers are required when, for example, you need to despatch
inventory as 'ree samples or free replacements, etc. You can make the issue entry with the
required quantity details but enter the value as zero - because you want your entry to reflect only in
your inventory books a id not your accounting books.
116.

117.
118.
119.

F11: Features F2: Inventory Features

A low Zero Valued Entries set: Yes.
Jse Different Actual and Billed Quantities: No

120.

121.

122.

123.

Transaction

124.Date
IO4/

125. Goods Received free from Darshan Communication.

2010
126.

127. Item
128. Nokia12

137.

Quan
131. R 133. VAT
tity
ate
Rate
03
130.
1
nos.
132.
N
138. Party give Sample at free of Cost.134. 4%
129.

WBUS this entry in Purchase Voucher.

Features F2: Inventory
Features _se Different Actual & Billed
Quantity Set No.

139.

140.

135. Amount
136. 0

1. Go to Gateway of Tally > Accounting

Voucher > F9 Purchase.
2. Press F2 to change the Date: 12/04/2010.
3. In the Supplier Invoice No. type DC-02
4. In the field of Party's A/C Name select Darshan Communication from the list of ledgers.
5. In the field of Name of Item select Nokia1203 from the list of Items.
6. Then after Sub screen of Item Allocation for Nokia1203 appears.
7. In the Tracking No. field Not Applicable.
8. In the field of Order No. select Not Applicable.
9. In the field of Godown select Office Godown.
10. Type Quantity as 1 nos
11. Skip the Rate Field In the Rate field type 0 Or give spacebar.
12. Amount will be display None
13. In the sub screen of Accounting Details, select Purchase 4% from the list of ledgers.
14. Give one time more Enter.
15. Show Statutory Details to No.
16. Skip the Narration field.
17. Accept the Voucher.
141.

142.

As screen Appears Following

143.

Additional Cost of Purchase

K cost of an item is the rate at which the item is purchased. However, there are other
expense -ich adds to the cost of purchasing the item. Hence, the additional cost details are
required to be
145. : :rporated in the actual cost of purchase. ~-ese additional costs may be different in nature
and may also be given in the purchase bill - like : i es Tax on Purchases, Packing charges, Cartage
incurred, etc. These are other costs involved .- ,ch are being paid separately, such as, freight
incurred by the company in order to bring the goods
146. on the customs or transport company, etc.
147. ~D get the actual cost of purchase, all those extra additional expenditure involved are to be
added to re cost of purchase. Let us now see how Tally handles this requirement.
144.

148.
149.
150.

- ::ivate Additional Cost Details

F11: Features F2: Inventory Features
'rack additional costs of Purchase set Yes.

151.

152.
154.

2010

1 i'.e

153. Transaction

11M/

155. ABC Trading Company purchased 3 nos of Samsung star 3G for Rs.

9,800 per piece on VAT Rate 4% from Tapan Enterprise and paid Packing
Charges Rs 200.

1. Go to Gateway of Tally > Accounting Voucher > F9 Purchase.

2. Press F2 to change the Date: 12/04/2010.
3. In the Supplier Invoice No field type TE-01
4. In the field of Party's A/C Name select Tapan Enterprise from the list of ledgers.
5. Skip the Patry detais screen.
6. In the field of Name of Item select Samsung star 3G from the list of Items.
7. Then after Sub screen of Item Allocation for Samsung star 3G appears.
8. In the Tracking No. field Not Applicable.
9. In the field of Order No. select Not Applicable.
10. In the field of Godown select Office Godown.
11. Type Quantity as 3 nos.
12. In the Rate field type Rs.9800.
13. Amount will be display automatically.
14.In the sub screen of Accounting Details, select Purchase 4% from the list of ledgers.
15.Give one time more Enter.
16.Select Input VAT @ 4%.
17.Create ledger Packing Charges Under Direct Expenses.
18.Select ledger Packing Charges.
19.Skip rate field.
20.Enter amount Rs 200 and press enter.
21.Show Statutory Details to No.
22.Skip the Narration field.
23. Accept the Voucher.
156.

157.

As screen Appears Following

158.

159.
160.
161.

Separate Discount Columns on Invoices

F11: Features F2: Inventory Features

Separate Discount Column on Invoices sets Yes.

162.
163.
164.
165.

Go to Gateway of Tally > Accounting Voucher > F9 Purchase.

Press F2 to change the Date: 18/04/2010.
In the Supplier Invoice No. field type TE-02
In the field of Party's A/C Name select Tapan Enterprise from the list of

ledgers.

171.

166.
Skip the Patry details screen.
167.
In the field of Name of Item select Samsung Corby from the list of Items.
168.
Then after Sub screen of Item Allocation for Samsung Corby appears.
169.
In the Tracking No. field Not Applicable.
170.
In the field of Order No. select Not Applicable.
I In the field of Godown select Office Godown.
172.
Enter Quantity 10 nos In the Rate

field type Rs. 9250 Enter Discount 10 % in

Discount column. Amount will be display
automatically.
173.
In the sub screen of Accounting Details, select Purchase 4% from trie list of
ledgers. Give one time more Enter. Select Input VAT @ 4% from the list of ledger ' 5
Show Statutory Details to No. Skip the Narration field. Accept the Voucher.

174.

175.

As screen Appears Following:

176. Multiple

Price Levels & Price Lists

In organisations dealing in multiple products for sale, a list of all the items along with price
details is maintained for the purpose of reference. This list is called Price List.
177.

Price Lists are maintained in various structures for different types of buyers (customers),
viz., Wholesalers, Dealers, Retailers, etc. Since the price list is structured based on the
classification of buyers - it is referred at the time of making sales. Since the sale prices do change
(on the basis of time), the changes will have to appear in the Price List also.
178.

The Price List is designed keeping in mind the nature of buyer (customer). There may be
customers who buy large quantities or high-value buyers, etc. Considering these factors, a special
discount may be offered through the Price List. In an online system of software technology, it is
desired that the prices are picked up automatically while making sale bill. Let us now see how Tally
handles such a situation through the Price List feature.
179.

180.

Active Price List and Define Price

Levels. F11: Features F2: Inventory

Features Use Multiple Price Levels sets
Yes.

181.

182. Enter details as shown in the Company Price Level screen.

/
Wholesale Sales \/
Retail Sales
183.

184.

185. To Create the Pricelist for Customers.

186. Go to Gateway of Tally > Inventory Info > Price List
187. Select All Items from the name of group list to view the Price List Screen.
188. In the field of Price -Level select Retail Sales from the list.
189. In the field of Applicable From 05/05/2010.
190. Enter the Price level details as shown in the figure.

191.

192.

2.
3.
4.
5.

193. 1
Gateway of Tally > Accounting Voucher > F8 Sales.
Press F2 to change the Date: 10/05/2010.
In the Ref field type SL-01
In the field of Party's A/C Name select Satyam Limited from the list of ledgers.
Select Retailsale , in field of the price level as shown :

194.

195. In the field of Name of item select Samsung Corby from the list of Items.
7. Then after Sub screen of Item Allocation for Samsung Corby appears.
8. In the Tracking No. field Not Applicable.
9.In the field of Order No. select Not Applicable. 0.
In the
field of Godown select Office Godown.
196. 11.
In the Quantity field type 8 nos.
2.
Rate will be display automatically.
Amount will be display automatically.

In the sub screen of Accounting Details, select Sales 4% from the list of
ledgers. Select the name of item i.e. Nokia 1203 from the list of the items. Then
after Sub screen of Item Allocation for Nokia 1203 appears. In the Tracking No.
field Not Applicable. In the field of Order No. select Not Applicable. In the field
of Godown select Office Godown. In the Quantity field type 7 nos. Rate will
be display automatically. Amount will be display automatically.
197.

In the sub screen of Accounting Details, select Sales 4% from the list of
ledgers. Give one time more Enter. Select Output VAT 4% from the list of
Ledgers. Amount of VAT will be display automatically Show Statutory Details to
No. Skip the Narration field. Accept the Voucher.
198.

199.

200.

As screen Appears Following

201.

Point of Sale (POS)

POS is an acronym for Point of sale. Point of Sale can be a retail outlet, a checkout counter in
a shop, or any other location where a sale transaction takes place.POS system is a computerized
cash register which adds up the sales totals, calculates
203.
The balance to be returned to buyer and automatically adjusts the inventory levels to reflect the
quantity sold. The equipment required for POS to work effectively is cash registers, card readers,
and barcode scanners and so on.
202.

Advantages of a Point of Sale system are

It helps to calculate sales and manage the Cash drawer.
It manages inventory and facilitates the barcode scanner operations.
It offers a flexible and simpler way of querying your inventory and sales database.
It helps you track product movement and the cost to push certain brands over others.
It tracks and records the date and time of every sale made at your Point of Sale.

204.

205.

Point of Sale (POS) Features in Tally

206.

Creation POS Voucher Type

Go To Gateway of Tally > Accounts Info >Voucher Type > Create

In the Name field type POS Invoice.

Select the Voucher Type as Sales from the list of Voucher Types.
Type the Abbreviations as POS.
Method of Numbering is set by default to Automatic.
Set Use Advance Configuration set to No.
Use Common Narration set to Yes.
Set Print after saving Voucher to Yes.
Use for POS Invoicing to Yes.
Message 1 :" Thank You"
Message 2 : "Visit Again"
In the field of Default Print Title type POS INVOICE.
Skip the other field.