basics of tally

8/7/2019 Basics of Tally

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Basics of AccountingTally is an Accounting Software that helps you in maintainingAccounts and Inventory of your office.

General Accounting

What is AccountingAccounting is the art of recording, classifying and summarizing in a significantmanner and in terms of money, transactions and events, which are in part, atleast,of a financial character, and interpreting the result thereof American Instituteofcertified public accountants.

Methods of AccountingThere are two types of Accounting Systems.1. American Method or Single Entry System.2. English Method or Double Entry System.

1. American Method or Single Entry System.It has further five types of accounting.I. Assets AccountsII. Liabilities AccountsIII. Capital Accounts or Owners Equity A/cIV. Revenue or Income AccountsV. Loss or Expenses A/c

Methods of RecordingI. Debit the Increase in the Assets and Credit the Decrease in theAssets.II. Credit the Increase in the Liabilities and Debit the Decrease in theLiabilities.

III. Credit the Increase in the Capital and Debit the Decrease in theCapital.IV. Credit the Increase in the Income and Debit the Decrease in theIncome.V. Debit the Increase in the Expenses and Credit the Decrease in theExpenses.

2. English Method or Double Entry System.Classification of Accounts1. Personal Accounts: These accounts are those accounts which areopened by a name of a person, firm, company, society or organization.

Rules: Debit the Receiver and Credit the Giver.

Types of Personal Accounts:I. Natural Personal Accounts:a) MAHESHs Accountsb) Owners Capital Accountsc) Owners Drawing Accountsd) Debtors Accountse) Creditors AccountsII. Artificial Personal Accounts


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a) Firms Accountsa) Companys Accountsb) Organization Accountsc) Bank Accountsd) Club Accountse) Insurance Company Accountsf) Government Sector accountsIII. Representative Personal Accountsa) Outstanding Salary Due to Staff accountb) Prepaid Insurance Accountc) Accrued Income Accountd) Unearned Commission Account3. Real Accounts : Those Business assets which can be measure in the termof money

their accounts are called Real Accounts.

Rules: Debit what comes in and Credit what goes out.Types of Real Accounts:

I. Tangible Real Accounts: These accounts are those assetsaccount which can be touched.a) Cash Accountb) Stock Accountc) Furniture Accountd) Land Accounte) Building AccountII. Intangible Real Accounts: Those accounts are those assetsaccount which cant touch but can be measured in the term ofmoney.a) Goodwill Accounts

b) Patents Accountsc) Trade Mark Accountsd) Copy Right Accounts

4. Nominal Accounts : Income and Expenditure accounts of a businessare called nominal accounts.

Rules: All the Expenses are debited and Incomes arecredited.Types of Real Accounts:I. Expenditure Accounts:a) Salary Paid Accountsb) Rent Paid Accounts

c) Bed Debts Accountsd) Commission Paid AccountsII. Income Accounts:a) Salary Received Accountsb) Rent Received Accountsc) Commission Received Accountsd) Interest Received Accountse) Bed Debts Recovered Accounts


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Steps for working in the Tally1. Create Company: In Tally this is the First task or primary task to create acompany. For this Purpose we have to select the Create Company optionfrom menu Gateway of Tally. After selecting the option we have to fill upthe details for the Company like Company Name, Address, Started Date,

and Income Tax No etc.2. Creates Groups: Groups are created for same type of Ledger A/cs. InTally There are many groups which are used for making ledgers. So inthe rare cases we have to create groups. These are the main groups inthe tally.I. Reserve and Surplus (Retained Earning): You can use thisgroup heads likeInvestment Allowance Reserve, Select Ledger and other such reserveaccounts.a) Current Assets: This is the primary group that has all thecurrent assets accounts. It has Six Sub Groups under it.b) Bank Accounts: It is used to hold all accounts of banks.

c) Cash in hand: It is used to hold ledger account of cash.d) Deposits: It is used to hold assets like security deposits, rentaldeposits and all other deposits made by the company.e) Loan and Advances: It is used to hold all advances and loans ofnon trading nature given by the company.f) Stock in hand: It is used to hold certain special accounts likeraw material, finished goods and work in progress.g) Sundry Debtors: It is used to hold accounts of companies andindividuals that give goods on credit to the company.III. Current Liabilities: This is a primary group and is used to holdoutstanding and statuary liabilities of the company. The group has

three sub groups under it which are as follows.a) Duties and taxes: It consists all types of taxes and duties likeExcise, Local Sales tax, Central Sales Tax, VAT etc.b) Provisions: It is used to hold other tax provisions like Incometax, depreciation in it.c) Sundry Creditors: It is used to hold accounts trade creditors of thecompany.IV. Fixed Assets: This is used to keep accounts of all the fixedassets, patents, trade tights etc.V. Investment: This is used to hold ledger accounts of shares, bonusand other securities of the company.VI. Loan Liabilities: This is used to keep track of loan taken by thecompany. This group has three sub groups which are as follows.a) Bank OD Accounts: It is used to hold all overdraft accounts withbanks.b) Secured Loans: It is used to hold long/medium term loans takenby the company from financial companies and Banks etc.c) Unsecured Loans: It is used to hold the loans takenunconditionally by the company.VII. Suspense Accounts: This is used by many companies to


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maintain a suspense ledger which keeps track of money received orpaid by the companies, whose nature of transaction is not yet known.VIII. Miscellaneous Expenses: The loss of the company, which hasnot been written off but carried forward to the next year, should fallhere. However, tally treats it as a negative profit and carries it to theprofit and loss account.IX. Branches/Division: This is used to keep the names of allcompanies which may be branches, divisions of the company.X. Sales Account: It is used to all goods sales accounts of thecompanies.XI. Purchase Account: It is used to all goods purchase accounts ofthe companies.XII. Direct Income: It is used to hold ledger accounts of nontradeincome accounts that affect gross profit.XIII. Indirect Income: This is used to hold ledger accounts of thoseexpenses of the company that determine its gross profit. For exampleinterest received and

commission received.XIV. Direct Expenses: This is used to hold ledger accounts of thoseexpenses of the company which determine its gross profit. Expenseslike salary paid to labour,transportation, electricity bills etc.XV. Indirect Expenses:This is used to hold ledger account of thoseexpenses of the company, which determine its net profit. Expenses likeadvertising, maintenance of vehicles, administrative expenses etc.3. Create Ledgers: Ledgers are actual account heads to which thetransactions are identified. You Make all voucher entries in theseaccounts. You have to classify all ledgers in to groups.

4. Voucher Entries: For Making the Voucher Entries first of all we have toset the voucher date by pressing F2 then enter the voucher date. Thereare various types of vouchers in tally. Those are describes as follows: I. Contra Voucher: This type of voucher is used for Cash to Bank,Bank to Cash and Bank to Bank Entries. Press F4 to select thevoucher type.II. Payment Voucher: This type of voucher is used for the CashPayment Entries. Press F5 to select the voucher type.III. Receipts Voucher: This type of voucher is used for the CashReceipts Entries. Press F6 to select the voucher type.IV. Journal: This is used for the Journal Entries like debit of creditEntries. Press F7 to select the voucher type.V. Sales Voucher: This is used for the Goods Sales Entries. Press F8 toselect the voucher type.VI. Purchase Voucher: This is used for Goods Purchase Entries. PressF9 to select the voucher type.VII. Memo: This is used to create Memorandum or Reverse JournalVoucher. Press F10 to select the voucher type.5. Display Reports: There are several types of reports are generated bythe tally like Trading and Profit and Loss Account, Balance Sheet,


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Inventory Reporting Ratio Analysis etc.

Introduction to TallyTally is a Financial and Inventory Management System. Tally isone of the acclaimed Accounting Software with large user base inIndia and abroad, which is continuously growing. Tally is developed in

India using Tally Development Language (TDL). Tally software wasdeveloped by Mr.Bharat Goenka in the year 1988.

Features of Tally1. Accounting wihtout codes2. Comprehensive Accounting. Maintains complete range of booksof Accounts, Final A/cs like Balance Sheet , Profit & loss A/c, cashand fund flow , Trial Balance and others.3. Provides Multiple reports in Diverse formats4. Various options for interest Calculations5. Maintain multiple Godowns for stock management.6. Unlimited sub-classifications to get multi-dimensional analysisand comparatives.

7. Allow accounts of multiple companies simultaneously.8. Multiple currencies in the same transaction and viewing allreports in one or more currency.9. Prints online.10. print daybook and balance sheet and ledger , trial balance andprofit and loss a/c.11. Backup and restore option12. Tally is allow to cheque printing13. Multi tax calculation like VAT, TDS, TCS, FBT, e t c .14. Calculate Payroll calculation easily.15. Use Security levels for audit purpose.

To start Tally :Start -> Programs ->Tally 9 -> Tally 9 Release 2OrDouble click on the Tally shortcut in the desktop to open Tally

Tally Screen Components:1) Title Bar - Displays the version number , system date and time2) Gateway of Tally - Displays menus, screens and reports.3) Calculator - used for calculator functions.4) Buttons toolbars - displays buttons that provide quick interactionwith tally.5) Minimize Button - Performs the standard windows functionallowing us to minimize tally to work on other applications.

Creating a CompanyWhen Tally first loads the Gateway of Tally area is available.When no companies are there , then the Select company option is notactivated. The cursor is placed the create company meaning that acompany should be created. Press enter in Create company optionin order to create a company.To create a company choose create company option in the gateway oftally screen or company information menu. While creating a newcompany it will ask for the following inforamtion.


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a) Directory - In this if needed we have to specify the path wherethe company file should be stored in your computer. By defaultD:\Tally\Data is the path taken.b) Name - In this we have to type the name of thecompany.c ) Mailing Name - In this we have to type the mailing name, which

is used to all the letters used in Tally.d) Mailing Address - In this we have to type the mailing address, suchas street , city, pincode for the company.e ) E-mail Address - In this we have to type the E-mail id for thecompany.f) Statutory compliance for - By default the statutory compliance forIndia. It is used for tax calculation for country wise.g) Currency Symbol - By default the currency symbol Rs is taken.Since Tally is a Indian product.h) Maintain - In this we have to choose either Accounts only or Accounts withInventoryi ) Financial Year - In this we have to type the starting date of the

financial year. In accountancy financial year start from April 1 of year toMar 31 of the next year. For example 1 april 2007 to 31 march2008. Automatically tally adds 12 months with the starting date of thefinancial year.j ) Book Beginning From - In this we have to specify the date in which thebook should be started. The date given must lie in between the financialyear starting date and ending date.k) Tally Valut Password - In this we have to specify the password for thecompany, if so the company name will not be displayed in the Selectcompany option.l ) Use Security Control - While opening the company if we need to specify theuser name and password for protection ( ex: other person cant openour company) , we can make this option to yes and specify the username and password.m) Base Currency Symbol - This option specifies the information aboutcurrency used in the company. Such as Base Currency Symbol, FormalName,Number of decimal places, Is symbol suffix with amount, symbol fordecimal portion, show amount in Millions, Is symbol suffixed with amountetc.Note : All the above information is not must, we can specify theimportant things and omit the others.

Group And LegerAccounts Organization: Ledger accounts and groups

In manual accounting, accounts are grouped upon preparation of Trialbalance toprepare final accounts, namely Profit and loss A/c and Balance Sheet. In tallyatthe time of creation ledger accounts, we place it under appropriate accountgroup. Account Groups provide us the ability to classify our accounts to getallthe reports instantly and properly classified. We have the liberty to re-grouplater to suit our requirements.


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Creating a GroupTally provides a list of 28 pre-defined groups. Of these, 15 are primary groupsand13 are sub-groups. We may configure our groups to enable / disableadvancedmode.

Press F12 -> Accts/ Inv info -> Account Masters -> Set to yes the followingoptionsAllow Advances entries in masters - YesUse Address for Ledger Accounts - YesSingle group - Allows us to work on one group or sub-group at a time.Gateway of Tally -> Accounts Info -> Groups -> Single -> CreateName of Group : Enter the name of the desired group or sub-group ( eg:Salary)Alias : Give an alias to allow access the group using the alias in addition to itsname , or leave it blankUnder: Specify under which existing (Parent) group the sub-classification isneeded. We can create a new parent group by using Alt +c. In other wordsAlt+C is the shortcut key to create a ledger or group during creation or duringvoucher entry.

Altering GroupsOnce created, groups can be altered by selecting Alter for single ormultiple groups. The procedure is the same as we used to display groupsexceptof course we may alter the data.

Deleting GroupsWe can delete a group via the Group Alteration screen by pressing Alt+D. However , we cannot delete Tally pre-defined groups,or groups with

subgroups,or groups containing ledgers. The lowest level must be deleted first.

LedgersOnce we have created necessary Masters, now it is the turn ofledger creation. Tally on its own, Creates 2 ledgers listed below allothers we have to create.Cash (under Cash- in - hand Group) Profit &Loss Account (Primary edger)Ledger is the actual account head to which we identify atransaction. We pass all accounting voucher entries using ledgers. Allledgers have to be classified into groups. Hence, a throughunderstanding of account classification is important working with

ledgersList of ledgers frequently used and their related Groups1. Capital Account Capital Account2. Name of your creditors Sundry Creditors3. Name of your Debtors Sundry Debtors4. Name of Expenses Direct Expenses or IndirectExpenses according to the nature of expenses5. Name of Income Indirect Income


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6. Name of Bank Bank Account7. Name of Current Asset Current Assets

stock in hand

deposits

show short term investment

8. Name of Fixed Asset Fixed Asset9. Name of Current Liabilities Current Liabilities10. Name of Fixed Liabilities Fixed liabilities11. Name of Loss Direct Expenses or Indirect Exp.12. Bad Debts Indirect Exp.13. Provision for Bad Debts Current Liabilities14. Outstanding Expenses Current Liabilities15. Advance Income Current Liabilities16. Outstanding Income Current Assets17. Sale Tax / VAT Duties and Taxes18. Excise Duty / CENVAT Duties and Taxes19. Drawing Capital20. Purchase Purchase account21. Sale Sale AccountLedgers can be created in single and multiple modes. In multiple modeyoucan create multiple ledgers at a time.Go to Gateway of Tally> Accounts Info. > Ledgers> Create (underSingleLedger)NameEnter the Name of the accountAliasEnter an alias name if requiredUnderAll accounts must be classified under their appropriate Groups. SelecttheGroup under which the Ledger is created from the List of Groups.Go to Gateway of Tally> Accounts Info > Ledgers > Create (underMultipleLedgers)Under GroupSelect the name of the group under which you want to create theLedgersfrom the List of Groups.S.NoThis is auto generated.Name of LedgerEnter the name of the Ledger.UnderThis field defaults to the parent group selected in Under Group


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Opening BalanceThis is the balance remaining when you first enter your books on Tally,i.e.the date of beginning of booksExercise: 1

Name : King SonsMailing Name : KingAddress : 101, 7th Main, M.G. Road,BangaloreState : KarnatakaPIN Code : 588 002Telephone No : 6789999E-Mail : [email protected] Symbol : Rs.Maintain : Account onlyExercise: 2

Name : GI EnterprisesMailing Name : GIAddress : 45, 3rd Main,Rajajinagar,ChennaiState : Tamil NaduPIN Code : 600 268Telephone No : 4789043E-Mail : [email protected] Symbol : Rs.Maintain : Account with Inventory

Exercise: 3Create a Ledger:Mariyas Capital A/CCanara BankPurchaseSalesRentElectricity BillWagesStationeryDiscount PaidInsurance Paid

Discount ReceivedCommission PaidPaid Petty CashOffice Expenses

Exercise: 4Ravis Capital A/CSBI Bank A/CPurchase A/C


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Sales A/CMachinery & Furniture A/CInvestment A/CBrokerage A/CTypewriter A/CPurchase from Nick Computers A/C

Rent A/CSalary A/CReturn Inward A/CReturn Outward A/CDrawing A/CSold to Suresh A/CTraveling Expenses A/CDiscount Allowed A/CTelephone Charges A/CSales to Raba Traders A/C

Accounting VouchersIn manual accounting, we record transactions through Journalentries. In computerized Accounting systems we do it throughVoucher entry. Normally, a transaction is supported by a Document,e.g., Suppliers Bill, Copy of Sales Bill , Counter foil/ Record Slip entry ofCheque book , Pay -in-slip , Pay Register etc. For every transaction/source document, we should enter a Voucher. A voucher containsdetails of the transaction.ParticularsIf you create Accounts voucherIn this field you should specify Dr or Cr. Type the letter D or Dr over theexistingprompt to change, then select the ledger name from the pop-up list that Tally

opens. There may be multiple Debit and Credit entries in one single voucher.If you create Inventory voucherIf you are creating inventory voucher in Tally you will give information aboutthestock item you receive or issue and item related details like theGodown/warehouse, Batch Details, Quantity, Rate, Amount etc.Debit / Credit Amount:This field appears in Accounts voucher only. Enter the amount of transactionandpress Enter key. Tally will update current balance of the ledger and display it.Thiswill happen only if you gave 'Yes' to the question 'Show Ledger Current

Balance?'under Accounting Voucher in Vouchers Entry under F12: configure option. Thetotalwill appear on the bottom of the Debit and Credit columns. If both credit andDebittotals are not equal Tally will prompt to enter further Credit / Debit to balancethevoucher. If both are equal Tally will move the cursor to Narration field.


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The Narration fieldThe last field of Voucher is Narration, here you enter details of the transactionentered in the voucher. It is not mendatory / compulsory to give narration.You cantype anything about the transaction or just leave this field blank. You canturn off

narration by responding No to the question 'Use Common Narration?' atvouchercreation/alteration screen.Saving the Voucher:After entering narration, when you press Enter key a confirmation prompt willappear Asking 'Accept Yes/No?'. Press Y or Enter to save the voucher or pressN toreturn cursor to the first entry allows you to alter any data in the voucher. Ifyougive Y Tally will save the voucher and blank screen will appear next tocontinuevoucher entry.

Voucher Types in Tally:Payment voucher:The payment voucher is for all payments you make through cash or Bank.Thesepayments can be towards expenses, purchases, to trade creditors, etc. Followthebelow procedure to create a payment voucher.All payment vouchers must have first entry a debit and at least one credit toaCash or a Bank Account. You can have any number of debit and creditentries.However, if you do not credit one cash or bank account and still try to acceptthevoucher a message appears asking for a cash or bank account.If configured, Fund Transfer entries can also be made in payment voucher.If you have given Yes to 'Print After Saving Voucher?' in Voucher Typecreation/Alteration Tally will print the voucher immediately after saving.Receipt VoucherThe receipt voucher in Tally is for all receipts into the Cash/Bank account. Thevoucher is similar to the payment voucher except that you debit cash or bankA/csand credit the ledger from which you receive. The first entry in receipt mustbecredit and at least one debit to a cash or bank account. There can by anynumberof debit and credit entries. If you do not debit one Cash or bank account, amessage appears asking you to rectify the entry.If you have given Yes to 'Print After Saving Voucher?' in Voucher Typecreation/Alteration Tally will print the voucher immediately after saving.Alternatively you can print any voucher later by going to Voucher Alterationscreenusing Display menu. Open the voucher and press Alt-P to display the 'Print


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Voucher' Screen. Give 'Y' to the Print? Prompt.Sales VoucherThe first entry must be a debit involving any debtor, bank or cash accountandsecond should be a credit to ledger placed under sales account group. Rest ofthe

accounts may be any Revenue account or any account under the Groupcurrentliabilities. Thus you can include Duties & Taxes from 3rd entry onwards.Purchase voucherThe first entry must be a credit involving any creditor, Cash or Bank accountandsecond entry should be a debit to a ledger placed under purchase accountgroup.Rest of the accounts may be any revenue account or any account under theGroupCurrent LiabilitiesContra Voucher

The contra voucher is for Fund transfers between cash and Bank accountsonly.The following is the rule,For example, If you pay Rs. 10000 cash into State bank Account. Your contraentryshould be like this,Particulars Debit/creditCr. Cash Credit - 15000Dr. State bank ac Debit - 15000Credit Note:Credit Note is raised when a buyer returns some goods that you sold him. oryougive him credit due to rate difference or discount/rebate or when there is anexcesdebit to any partyDebit Note:You create a Debit Note when you make purchase return or when you haveshortbilled a customer or you are granted credit by your supplier due to ratedifference,discount etc.Memo VoucherThis is purely Non-accounting voucher. These entries will not affect youraccountsnor does affect your final results. You can alter and convert a Memo Voucherinto aregular voucher when you decide to bring the entry into your books.You can use memo vouchers to make suspense payments, vouchers notverified atthe time of entry, Items given on approval.

Exercise: 5

Journalize the following:


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No Date Transaction01 01-02-2004 Maruthi & Sons Started business with capital of Rs.2,00,00002 02-02-2004 Paid into Indian bank Rs. 50,00003 03-02-2004 Bought goods for cash 14,70004 06-02-2004 Sold good to JJ Traders on Credit 7,000

05 09-02-2004 Cash Sales 19,00006 11-02-2004 Received Commission 40007 13-02-2004 Received seven tables from Amirtha Stores at 500 each08 15-02-2004 Bought goods from Vignesh 2,00009 21-02-2004 Paid cash to Amirtha Stores10 26-02-2004 Paid rent 1,00011 27-02-2004 Paid Salary 2,500

Exercise : 6

Journalize the following:No Date Transaction01 03-07-2004 Peter started business with Rs. 75,000

02 05-07-2004 Goods purchased 6,00003 10-07-2004 Good sold Rs. 8,00004 15-07-2004 Goods purchased from Mathew Rs. 21,00005 17-07-2004 Goods sold to Sanjay Rs. 24,00006 18-07-2004 Goods returned to Mathew Rs. 1,30007 20-07-2004 Goods returned by Sanjay Rs. 50008 23-07-2004 Opened an account with HDFC Bank Rs. 15,00009 25-07-2004 Drew from Bank Rs. 4,00010 25-07-2004 Furniture purchased Rs. 3,50011 27-07-2004 Sanjay settled his account12 28-07-2004 Settled Mathews Account13 29-07-2004 Insurance Premium paid Rs. 350

14 29-07-2004 Electric Charges paid Rs. 25015 30-07-2004 Drew for Personal use Rs. 1,30016 31-07-2004 Salary paid Rs. 1,500

Exercise: 7

Journalize the Following with invoice:HS & Co started the business from 01/04/200401/04/2004 Received capital by cash 2,00,00001/04/2004 Cash Deposited in HDFC Bank 50,00004/04/2004 Credit purchases from Kiran Traders 20,000 (Inv.No. 122)04/04/2004 Credit purchases from Pooja Traders 20,000 (Inv.No. 433)11/04/2004 Credit purchases from Kiran Traders 20,000 (Inv.No. 144)11/04/2004 Credit purchases from Pooja Traders 20,000 (Inv.No. 444)

11/04/2004 Returned Goods to Kiran Traders 5000 (Inv.No. 122)13/04/2004 Returned Goods to Pooja Traders 5000 (Inv.No. 444)16/04/2004 Credit Sales to Ram & Ram 50,000 (Inv.No.1)16/04/2004 Credit sales to Kavitha & co 50,000 (Inv.No. 2)16/04/2004 Cash Sales 20,000 (Inv.No. 3)18/04/2004 Credit Sales to Ram & Ram 50,000 (Inv.No.4)18/04/2004 Credit sales to Kavitha & co 50,000 (Inv.No. 5)18/04/2004 Goods returned by Ram & Ram 5,000 (Inv.No.1)


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18/04/2004 Goods returned by Kavitha & co 5000 (Inv.No. 5)21/04/2004 Payment made by cheque to Kiran Traders 30,000 Ch. No.16112221/04/2004 Payment made by cheque to Pooja Traders 30,000 Ch. No.16112321/04/2004 Received cheques from Ram & Ram 75000 Ch. No. 320321

21/04/2004 Received cheques from Kavitha & co 75000 Ch. No. 112310Payment Made by cash:26/04/2004 Paid to Petty cash by cash 1,00026/04/2004 Furniture purchased 20,00026/04/2004 Salaries paid 10,00026/04/2004 Rent 4,00026/04/2004 Electricity charges 3,00026/04/2004 Telephone charges 3,50026/04/2004 Cash Purchases 5,000Payments Made by Petty Cash:30/04/2004 Conveyance 15030/04/2004 Postage 100

30/04/2004 Stationeries 20030/04/2004 Staff Welfare 10030/04/2004 Stationeries purchased from Jain & Co 1500 on Credit30/04/2004 Depreciation on Furniture 10%Answer: Balance Sheet Total Rs. 3, 21,950

MemorandumExercise: 825 Apr 2007 Paid advance in Travailing Rs.1000027 Apr 2007 Paid salary advance Rs.300001 May 2007 Paid salary Rs.3000 against advance05 May 2007 Paid Traveling exp Rs.8900 against advance

25 May 2007 Paid rent Advance Rs.500002 June 2007 Paid rent against advanceVoucher Types:By default Tally 9 provides 18 types of Vouchers (with out countingpayroll vouchers) for recording different natures of transactions. However, ifyourequire further Voucher Types that function like the one of the existing type,youcan create New Voucher Types and give different Voucher Numbering series.The Voucher Type facility is great as you can make several alternates of eachpre-fixed Voucher Type. For example, for Sales Voucher, it may beconvenient tohave several Voucher Types like Cash Sales, Credit Sales, Sales To RegisteredDealers, Sales to Unregistered Dealers, Export Sales, etc. By creatingseparatevoucher types for them, you can independently configure their numberingscheme,layout, etc.Voucher Number:To identify a voucher uniquely, normally every voucher is given unique


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number. The number may be allotted by the user, or can be automaticallygenerated by Tally, according to options set in voucher Types under AccountsInfo.Tally provides three options for voucher numbering1) Automatic 2) Manual 3) NoneIf Automatic is opted for the selected Voucher Types, Tally allots

incremental number and cursor would not move here. And we cannot changethevoucher number.If Manual is specified for the selected voucher type, cursor would blinkat the voucher number field to input from keyboard. We can modify thevoucherNumberIf none is opted for the selected Voucher Type, voucher number fieldwould not appear.

FeaturesTally controls operational Features through F11: Features button.

F11:Features button appear almost in every screen upon selecting acompany. We get same option irrespective of screen where we launchit. Feature settings are company specific. We can activate an option forone company and deactivate the same for another company.

Accounting Features - 111. Integrate Accounts and Inventory: This option basicallyaffects accounts. If we set this option to Yes, the value of stock isautomatically computed on the basis of Inventory and posted inBalance sheet, Profit & loss a/c and we are not allowed to input thestock value on our own as the accounts are integrated with theInventory Part.If we set No, our Accounts & Inventory remains separate and we

have to input the value of closing stock in the ledger under Stockin-hand group which is posted in the Balance Sheet & Profit & LossA/c.2. Income /Expense Statement Instead of P & L: We change Profit and LossA/c to Income and Expenditure statement. By default, Profit & Loss A/C3. Allow Multi Currency: If we wish to record transaction in foreigncurrency, we should set this option to yes. On setting this feature to yes,Currency option would be available at Accounts Info menu and in ledgercreationwe can specify currency for the ledger. In case we do not need foriegncurrencyoption, we should respond No, that would keep, Accounts Info menu and

ledgercreation screen tidly.4. Maintain Billwise Details: By default, Tally would maintain ledger wisebalance and display net debit or credit balance for a ledger. If we receive orgrant credit on purchase or sales, mere ledger balance may not reflect thetruestate of affairs-as a ledger may show an amount due which may not be overdue on that date. By maintaining Bill wise details, we can get bill wise


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outstanding ,compute bill wise overdue interest , In case we need thesefeatures, respond Yes to this option that would allow to selectively option tomaintain Bill Wise Details for ledgers. In case mere ledger balances issufficient to meet our requirement. Respond No to keep the ledger creationscreen more sleek.5. Maintain Cost Centres: If we wish to make cost centre wise allocation,

respond Yes that would activate Cost Centres option which we would get inAccounts inof menu6. More than One cost Category: If we respond Yes to theabove option, we are asked this question. If we wish to allocate a transactiontomore than one set of cost centres simultaneously, respond Yes that wouldactivate Cost Category option under accounts info menu and we would beableto allocate to multiple set of cost centres.7. Interest Calculations:Interest is re-calculated with every change inbalance outstanding. The Cr in the interest amount should not be confused tomean an Income. It only means that it is payable and is a liability.

8. Maintain Payroll: If we set this option to yes, we can create a employee payslip.9. Allow Invoicing: If we set this option to yes, we can enter salestransactions in Invoice mode also if we respond No, we will ne restricted toentersales transactions in voucher mode only.10. Maintain Budgets and Controls: If we wish to use Budget to compare withactual or other budgets and get variance or set Credit Limit for party,set thisfeature to yes. When we set this feature to yes, Budget option would beavaliable at Accounts info and Credit Limits under Accounts Info-Ledgermenu.In case we do not need to use Budgets or credit limits, set to No.11. Use Reversing Journals & Optional Vouchers:If we set this optionto yes, It would be enable to voucher entry.12. Allow Zero valued entries: If we need to make Voucher entireswhose monetary transaction value is 0, respond yes (For example, toprepare an Invoice for sample of zero value), otherwise respond No.13. Enable Cheque printing : You can choose to write chequesdirectly from Tally. Cheques will be printed when printing a PaymentVoucher. However, first activate the capability and set dimensions

Multi-CurrencyOrganizations who transact in multiple currencies need to record transactionin the

currencies they transact with. We can create and transact in any currency.Wecan also enter selling and buying rate of different currencies.

F11- Features Allow Multi currency YesOnce this option is said to yes we get currencies under accounts info.

Select currencies press enterThe currencies menu has the usual create, display and alter options.Symbol : Enter currency symbol


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Formal Name : Enter the name of currency, mustbe different from the symbol.Number of Decimal places : Enter the number of decimal places for theCurrency.

Rate of Exchange:Thee screen always comes up in Alter mode.

Rate of Exchange: It operate on day-to-dayStandard Rate : The standard rate is used to calculate variances fromThe actual transaction ratesSelling Rate : Enter the rate at which we are selling the currencyto our money exchange.Buying Rate : Enter the rate at which we are buying the currencyfrom our Banker or Money Exchanger.

Come to voucher entry Press F5 Payment Payment is made to KrishnaTraders in Dollars that is 50 dollars. The entry is passed as shown below :Once enter is pressed in the amount column the Dollar gets converted toRupee ason the date of voucher Entry as shown below and the amount is displayedbasedon Rupee currency.Exercise: 9Mr. Laxman started a business in the name of Laxmana Traders on1/5/200502/5/2005 Received capital from Murali 1000 Dollars.02/5/2005 Standard rate Dollars 67,68,6503/5/2008 Purchased items from Vimal & co for 150 Dollars03/5/2008 Standard rate Dollars 61, 63, 6006/5/2008 Sold goods to Raja & Raja for 75 Dollars06/5/2008 Standard rate Dollars 46, 48, 47

08/5/2008 Received 70 Dollars from Raja & Raja08/5/2008 Standard rate Dollars 58, 59, 57Exercise: 10Create currencies for the following:Standard Selling BuyingRate Rate Rate$ (Dollar) 62 63 60# (Frank) 45 47 46 (Pound) 72 73 72 (Yen) 58 60 59 (Euro) 82 83 82

1.2.2004 Sathesh Started business with Rs. 5,00,00001-02-2004 Opened Current Account in HDFC Rs. 25,00003-02-2004 Bought goods from Levi Traders $20006-02-2004 Sold good to Jagan Traders on Credit 15009-02-2004 Goods Purchased from Mahila & Co 10011-02-2004 Furniture purchased 50013-02-2004 Goods returned to Mahila & Co 1515.2.2004 Bought goods from Vinita & Sons 100


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21-02-2004 Settled Mahila & Co Account26-02-2004 Paid rent 1,00027.2.2004 Paid Salary 2,50027.2.2004 Sold to Peter Steel Enterprises 20028-02-2004 Peter Steel Enterprises settled his account.

28-02-2004 Drew from Bank Rs.10, 000Cost Categories and Cost CentresBy providing cost centre, a transaction can be allocated to it which wouldthenenable extraction of all transactions for a cost centre. Hence, a cost centrecan besaid to be any unit of an organization to which transactions can be allocatedwhenonly costs or expenses are allocated to these units; they are referred to ascostcanters.

F11-Featrues Set yes to two optionsMaintain Cost centre yesMore than one Cost Category yesSteps Involved:

Cost Categories Single createName: DepartmentAllocated Revenue Items: yes

Accept yes

Cost CentreMultiple Cost Centre CreateUnder Cost Centre: All items.

In Category Column Select Department

Under Name of Cost Centre Type the different types of Cost Centres

Accept yesCome to voucher Entry

Press F5 Payment and enter the following entryBy Salaries Rs. 45,600Once we press enter we get the following screen, select Cost Category, thenselectcost centres and type the salary amount incurred for the differentdepartments asshown below:

Type to cash Type the Narration Accept Yes

COST CENTRE CLASS

Cost Centre Classes affect all voucher types. In voucher entry, the allocationscreen would not appear, but allocation would be made automatically.

Steps Involved:1. Press F11 -> Features -> Maintain Cost Centres and morethan one cost category options should be set to Yes.2. press F11 -> Features -> Pre-defined cost centreallocation during entry set Yes.3. The following screen appears.4. Type a Class name, say Expenses Allocation . Press Enter the


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following screen appears.5. Select the name of the cost category as Department , selectCost Centres and type the Percentage of allocation for eachdepartment. The percentage should be typed by us. Press EnterAccept Yes.6. Come to Voucher Entry. Press F5 -> payment -> Under Cost

Centre Class -> Select the name of the class as Expensesallocation. Then pass the entry.To view the Allocation of Expenses under different CostCentre: Display -> Statements of Accouts -> Cost centresExercise No: 11Cost Category: ChennaiCost Centre: Marketing, Finance, Administration01/4/2005 Paid Salary Rs.28, 000 (M-10, 000, F-10, 000, A- 8,000)03/4/2005 Paid Rent Rs. 8, 000 (M-2, 300, F- 2,200, A- 3, 500)17/4/2005 Paid Stationeries Rs. 3,000 for all departments24/4/2005 Paid Electricity charges Rs. 12,000 (M-4, 000, F- 3,500, A- 4,500)30/4/2005 Paid Sales Tax Rs. 1,650 for all departments

01/4/2005 Paid Income Tax Rs. 1,800 for all departmentsExercise No: 12Cost Category: DepartmentCost Centre: Account, Purchase, Sales, ComputerDate Expenses AccountPurchaseSalesComputerTotal03/5/05 Electric Bill 2000 2000 1400 5000 1040005/5/05 Rent 1500 1500 300 3000 630007/5/05 Interest 500 200 150 85005/5/05 Wages 500 200 70009/5/05 Stationery 250 50 120100 52013/5/05 Salary 4500 2000 3000 4000 1350025/5/05 PostalCharge400 150 55027/4/05 Telepone


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Bill1300 300 200 1500 3300

Bill-Wise DetailsBy activating the Bill wise feature in F11: Features, the ledger masters

under Sundry Debtors and Sundry Creditors automatically displays anadditional option called Maintain balances bill-by-bill. On setting thisoptionto Yes, you get an additional option Default Credit Period.When you enter details of sales and purchases with Bill-wise turned on,Tally prompts you to identify the invoice with an appropriate referencenumber. The reference can then be used to allocate payments to thecorrect invoice to maintain an accurate account of outstanding.Bill-Wise Types:New Ref:To enter new credit purchase or new credit sales value

AdvanceTo settle payment or receipt before purchase or salesAgainst Ref:To settle payment or receipt against purchase or salesOn AccountTo settle an opening balance to study partyCreation of Bill_Wise_Details:F11: Accounting Feature:Maintain Bill-wise Details? Yes(for Non-trading A/c s also) NoLedger creation:

Purchase Purchase A/cRam & Co Sundry CreditorVoucher Creation:

Gateway of TallyAccounting VoucherReport:Go to Gateway of Tally > Display > Statements of Accounts > Outstanding>Receivables/Payables.Exercise No: 13Capital 2, 50,000Sundry debtorsMilky (P)Ltd 5160

Bill No Date Amount Due daysS/01-02/301 27/01/02 1430 30S/01-02/304 26/02/02 1730 30S/01-02/309 27/03/02 2000 45Sundry CreditorsPraveen & Sons 7050Bill No Date Amount Due daysC/01-02/1248 26/01/2002 1500 30


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C/01-02/1252 21/02/2002 4050 30C/01-02/1282 25/03/2002 1500 45Fixed AssetsFurniture 30,000Computer 40,000

Opening Stock 10,000Cash in hand 70,000SBI 1, 01,890Voucher Entry:Sales billMilky (P)LtdsBill No Date Amount Due days202 30/04/02 1430 30214 15/05/02 1500 30256 31/07/02 3640 15301 28/10/02 2750

351 25/10/03 5050 45392 15/03/03 11000 45Kamal & CoBill No Date Amount Due days417 12/04/02 2230 15431 16/05/02 2650 15452 17/08/02 5630 30515 15/11/03 10780 45659 21/01/03 1530815 30/03/03 2130 30Purchase bills

Praveen & SonsBill No Date Amount Due days0001 03/04/02 455 -0002 05/05/02 1000 150003 16/08/02 1675 300004 22/11/02 4050 300005 31/03/03 12350 45Malar & Co0006 02/02/03 11450 300007 15/02/03 5540 150008 24/02/03 875 15

0009 31/03/03 1234 30Received cashMilky (P) LtdBill No Date Amount304 02/05/02 1730214 17/06/02 1500301 01/11/02 2750351 31/03/03 4000


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Kamal & co417 30/4/02 2230452 20/8/02 5000515 31/1/03 10000659 25/1/03 1530

Payments MadePraveen & Sons1282 15/5/02 15000001 4/4/02 4550004 20/9/02 40500005 30/3/03 12000Malar & Sons0006 5/3/03 10,0000007 15/3/03 5,540

Interest CalculationsThe Activate Interest Calculation field is displayed in the Ledger

Creationscreen only if Activate Interest Calculations is set to Yes in F11:Features.Set this field to Yes for each specific ledger account for which interestis tobe calculated.Simple Mode (Where advanced parameters are not applicable)To calculate Interest in the Simple Mode:1. Go to Gateway of Tally> F11: Features > Set Activate InterestCalculation to Yes. > Set Use Advanced Parameters to No.2. In the Ledger Creation screen set Activate Interest Calculation to

Yes.3. The Interest Parameters sub screen is displayed. Enter the Rate andselect the interest style from the list.Interest calculation transaction by transactionInterest calculated on Outstanding Balances.1. Go to Gateway of Tally> Accounts Info.> Ledgers> Alter (Single)>Bank Ltd (bank account)2. Set Activate interest Calculation to Yes.3. Rate: 15%.4. Interest Style:. Of the four options, select 365-Day Year.5. Accept the screen.The Interest Calculations Report can be displayed and printed.Go to Gateway of Tally> Display> Statements of Accounts> InterestCalculations> Ledger> Bank AccountInterest calculation transaction by transaction1. Alter a Customer account2. Set Activate Interest Calculation to Yes.3. Set Calculate Interest Transaction-by-transaction to Yes.


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4. Set Over-ride Parameters for each transaction to No.To view the Interest calculatedGo to Gateway of Tally> Display> Statements of Accounts> InterestCalculations> Ledger>Advanced Mode ( Where advanced parameters are applicable)

The advanced parameters are particularly useful where interest rateschangefrom time to time.1. Go to Gateway of Tally> F11: Features > Accounting Features > SetActivate Interest Calculation to Yes. > Set Use Advanced Parameters toYes.2. The Interest Parameters sub-screen is displayed

For Ledgers created under the Group Sundry Debtors/SundryCreditors, the Interest Parameters sub-screen is displayed asshown below:

For Ledgers created under the Group Bank Accounts, or if the

option Calculate Interest Transaction by Transaction is set toNo, then the Interest Parameters sub-screen is displayed asshown belowTo view the report on Outstanding balances:Go to Gateway of Tally> Display> Statements of Accounts.> InterestCalculations> Ledgers> Bank Ltd.Advanced Parameters - Interest calculation transaction bytransaction:Activate and specify interest calculations in ledger masters.Advanced Parameters - Interest calculation transaction by transactionGo to Gateway of Tally> Display> Statements of Accounts> Interest

Calculation >Ledger>X a/cExercise: 141.6.2004 Capital Rs. 1,50,0002.6.2004 Purchased goods from Raabiya Traders for a sum ofRs.75,000[Credit period is 45 days, Bill no.24]Interest Rate 12% and 15%6.6.2004 Sold goods to Kamalam & Co for a sum of Rs. 1,25,000[Credit period is 45 days]Interest rate 13% and 18%

2.12.2004 Amount paid to Raabiya Traders plus the interest rate.3.3.2005 Amount received from Kamalam plus the interest rate.Display the interest calculations from 1-06-2004 to 31-03-2005

BudgetsBudgets are used to set targets and compare against actual and getvariances. We can create multiple budgets for different purpose.


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Press F11-Accounting Features Maintain Budgets and Controls- setyesCreation of Budgets:

Gateway of Tally Accounts Info Budgets createOn selection of create option, we get a screen as shown below

Name : Enter a name of the Budget for identificationUnder : PrimaryPeriod of Budget : Given the period range of the Budget in theColumns From and To

Press Enter Under Ledgers Type yes, the next screen appears andtypethe contents as shown below:Account Name : Name of the Group or Ledger for which thebudget is created.Cost Centre : Not applicableType of Budget : We get 2 options to select the type of Budget,

namely1. On Nett Transactions2. On Closing BalanceOn Nett Transactions: This option is suitable for accounts where netttransactions are to be monitored (eg. Revenue A/C)On Closing Transactions: This option is suitable for accounts whereclosingbalance is to be monitored (eg. Personal A/C)

Press Enter Enter Accept yes. Budget has been created.To view the Budget,

Go to Gateway of Tally Display Trial Balance Press Alt + B

Budget

Variance select the name of the Budget Press EnterExercise: 15Expenses BudgetConveyance 5,400Wages 50,000Carriage Outwards 500Electricity Expenses 3,000Advertising 2,000Selling and Distribution 1,500

Enter the following entries for Budget and ControlsMay 2005Paid Conveyance 200Paid Wages 500Paid Carriage Outwards 2,500Paid Electricity Expenses 3,000Paid Advertising 2,000Paid Selling and Distribution 1,100


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June 2005Paid Conveyance 500Paid Wages 250Paid Carriage Outwards 1,500Paid Electricity Expenses 2,000

Paid Advertising 2,000Paid Selling and Distribution 1,220

Bank ReconciliationBank Reconciliation means that the accounts maintained by the banker tallieswiththe bank ledger account in our Books. Even if both the accounts are in sync,thebalances may not be equal for various reasons. Bank Reconciliation is theprocessto ensure that even if these two balances apparently differ, the bank PassBook is

in sync with the Bank Book in the books of accounts.Steps Involved:1. Our current account statement has been sent to us by our Bank for themonth ended may 2005

2. Bring up the monthly summary of Current Account (DisplayAccount

BooksBank Books and select the bank Account)3. Bring the cursor to May and Press Enter. This brings up the vouchers forthemonth of May 20054. It is helpful to see the Narration as that contains cheque numbers andotherdetails. So Press F12: Configure and activate Show Narration.

5. Since this is a Bank Account, an additional button F5 Reconcile will bevisibleon the right. Press F56. The display now becomes an Edit screen in reconciliation mode. Theprimarycomponents are:

A Column for the Bankers Date

The Reconciliation at the bottom of the screen,Showing:Balance as per Company Books, Amounts notReflected In Bank and Balance as per bank7. Enter the bank date for the payment voucher and contra voucher.

8. The next time we come for reconciliation, we will be presented withonly those vouchers, which remain unreconciled.Exercise: 16

01/4/2005 Received Capital by Cash 1,00,00002/4/2005 Cash deposited in SBI 50000Deposit Slips05/4/2005 Kiran 4500007/4/2005 Sanjaj 25000


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10/4/2005 Kavi 2000011/4/2005 Kiran 2000015/4/2005 Kavi 15000Counter Foils08/4/2005 Kavitha 15000

09/4/2005 Sachin 500011/4/2005 Amutha 750012/4/2005 Sachin 1000015/4/2005 Amutha 450017/4/2005 Kavitha 1200030/4/2005 Bank Charges 250Pass Book of SBI as on 30/4/2005Date Name Deposits (Dr) Withdrawal (Cr) Balance02/4/05 Cash 50000 50000 Cr06/4/05 Kiran 45000 95000 Cr09/4/05 Sanjay 25000 120000 Cr

10/4/05 Kavitha 105000 Cr13/4/05 Amutha 7500 97500 Cr14/4/05 Sachin 10000 87500 Cr17/4/05 Kavi 15000 102500 Cr30/4/05 Bank 250 102250 CrExercise: 17Jeevan & Co Started business on 1/4/20041/4/2004 Received capital by Cash Rs. 50,00001/4/2004 Cash deposited in Canara Bank Rs. 20,000Following is the details of Deposit Slip (Sundry Debtors)10/4/2004 Kabir 40,000

12/4/2004 Usha 25,00014/4/2004 Syam 20,00025/4/2004 Usha 15,00029/4/2004 Kabir 10,000Following is the details of counter Foil of Cheque Book (SundryCreditors)11/4/2004 Ashima Textiles 12,50013/4/2004 Fashion Textiles 3,35015/4/2004 Silky 5,00017/4/2004 Ashima Textiles 10,00019/4/2004 Fashion Textiles 5,000

28/4/2004 Silky 3,00030/4/2004 Bank Charges 100Date Name Deposits (Dr) Withdrawal (Cr) Balance01/4/2004 Cash 20,000 20,000 Cr12/4/2004 Kabir 40,000 60,000 Cr13/4/2004 Ashima Textiles 12,500 47,500 Cr14/4/2004 Usha 25,000 72,500 Cr15/4/2004 Fashion Textiles 3,350 69,150 Cr


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17/4/2004 Silky 5,000 64,150 Cr18/4/2004 Ashima Textiles 10,00026/4/2004 Usha 15,000 69,150 Cr30/4/2004 Cheque Book 100

Optional and Post-Dated VoucherThis is another non-accounting voucher. Unlike a Memo voucher, this is not aseparate voucher type. You can mark an existing voucher (for example, apayment voucher or a receipt voucher) as Optional. Press CTRL + L or clickonOptional from the Button Bar. This button toggles with Regular. By markingavoucher Optional, the voucher does not get posted anywhere but remains inthe Optional Register.You can make a voucher type default to Optional if you need to create anewvoucher type or alter an existing voucher type.Go to Gateway of Tally > Accounts Info > Voucher Types> select a

Voucher Type> Set Make Optionalas default to Yes.Enabling Optional Vouchers1. Go to Gateway of Tally2. Select F11:Features > Accounting Features to display CompanyOperations Alteration screen3. Set Use Rev. Journals & Optional Vouchers? to Yes.4. Accept the screen to save.Use of Optional Vouchers If you do not want a transaction that is incomplete to affect the accounts,you canmark this as an Optional Voucher. Once the transaction is complete, modifythe

voucher and post it as Regular Voucher. For example, Performa sales invoice.Infact, an optional sales invoice prints as a Performa Invoice. Optional Vouchers allow you to see the impact of transactions withoutactuallyposting them. Optional Vouchers can be used to forecast future sales. For example, createaNew Voucher Type - Sales Forecast. Record future sales projections using thisvoucher type.Let us consider the following example.On 30th June you want to view the Balance Sheet as of today but June rent is

notdue for payment until the first week of July. This liability is not reflected in theBalance Sheet. To overcome this, enter an Optional Voucher dated 30th June.The above entry is made as shown below1. Enter Date2. Select Optional from the button bar3. Debit Rent account


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When you view the Balance Sheet, generate a report with the OptionalVoucherincluded. The Optional Voucher should be already defined as a Scenario(Refersection on Scenario Management for more details). The voucher affects thereport temporarily. Once you quit the report, Tally does not retain the

Scenariodetails. The next time you view the balance sheet, it will not include theeffect ofthe Optional Voucher unless you include it.

Post-Dated VouchersWhile entering vouchers, you can mark them as post dated. Tally will notupdatethe vouchers in ledgers until the specified date is approached. This is usefultoenter transactions that take place on a regular basis. For example, if you payfor

something by installments, you can set up the payments in advance, andTallywill only enter them in the ledgers as they fall due.Mark vouchers Post Dated by using CTRL + T or click on Post dated buttonfrom the Button Bar. This button toggles with Current.

Accounting with InventoryInventory accounting includes recording stock details, thepurchase of stock, the sale of stock, stock movement betweenstorage locations/ godowns and providing information on stockavailability. With Tally it is possible to integrate the inventory andaccounting systems so that financial statements reflect the closingstock value from the Inventory system.

The Inventory system operates in much the same way asthe accounting system. First we set up the inventory details, which is asimilar operation to creating the chart of accouts although , in this casethere is no pre-defined set of stock groups. Second, we create theindividual stock items. which is similar to setting up the ledgers. Finally,We are ready to use vouchers to record the various stock transactions.

Stock items:Stock items are the actual items in stock, and we account forthe issued and receipts of stock at this level.

Stock Groups:We classify stock items into stock group based on anycommon feature.

Stock Categories:This is a useful Tally feature, Which allows us to classify similarstock items together across different stock groups, enabling us toobtain reports on alternatives or substitutes for a stock item.

Locations/Godowns:We can specify where the stock items are held, e.g., whichwarehouse shelf or rack, obtain stock reports for each Godown, andaccount for movement of stock between locations/Godowns.


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Select Create in multiple Stock groups to bring up the multistock group creation screen.

Select group name from the Pop-up list of Groups for the UnderGroup field.

In Name of Stock Group type and enter sub group name.

In the next line type another group name and Accept -> yes.Displaying and Altering Stock GroupsOnce created, stock groups can be displayed and altered in single andmultiple mode. We can delete a stock group via single Stock group alter bypressing +. However. we cannot delete a stock group withsubgroupsor stock items.The lower levels must be deleted first

Delete a Stock GroupNote:You can delete a stock group only if it does not have any childrenunder it. The children could be stock group or stock item or both.Gateway of Tally>Inventory Info>Stock Groups>Single AlterPress [ALT]+[D]to delete the stock group

You cannot delete a stock group from multiple mode.Stock Categories:Stock Categories offers parallel classification of items. You may create StockCategories like Floppy Disks and Floppy Drives.Require information like total stock of floppy disks or alternative items thatcouldbe used, these would be best available through Stock Categories.F11 Features: Maintain Stock Categories Yes

Creating Single Stock Category:Gateway of Tally > Inventory Info > Stock Categories

In the Name field Enter Floppy Disks

In the under field Select PrimaryCreating Multiple Stock Categories Select create in multiple mode to bring up the multi stock categorycreation screen.

Select any one stock categories from the list of categories. Type andenter sub stock categories.

Press Enter twise to accept the data and return to the stockcategories menu.

Display or Alter a Stock CategoryGateway of Tally>Inventory Info>Stock Categories>Single/MultipleDisplay

OrGateway of Tally>Inventory Info>Stock Categories>Single/MultipleAlterSelect the stock category whose particulars you wish to display. When youdisplayor alter a stock category, the information entered while creating it isdisplayed.

Display from this mode is for master information only. You will not obtainany


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balances for a stock category here. Use the Display option from the Gatewayof Tally for display of balances and transactions.

In earlier days of computing, one would look at the master information forbalances. Tally believes that balances are a logical consequence of thetransactions; hence, they should be available with the transactionsummaries. You would find all summaries and details through the Display

option in the main Gateway of Tally.Delete a Stock CategoryYou can delete a stock category only if it does not have any children under it.The children could be stock category or stock item or both.Gateway of Tally>Inventory Info>Stock Categories>Single AlterPress [ALT]+[D]to delete the stock category

Units of MeasureYou will need to create units of measure for stock items. These can besimple units such as numbers., metres, kilograms, pieces, or compound units,e.g. box, where, say, one box equals ten pieces.

Create a Unit of Measure

There are two types of Unit of measure:1. Simple2. CompoundSelect Units of measure from the Inventory info menu and select create theUnits menu to bring up the unit creation screen.In symbol type and enter nos. in formal name type and enter Number ofpressEnter twice to accept the data without quitting from the unit creation screen.Gateway of Tally>Inventory Info.> Units of Measure> CreateIn Symbol type ad enter doz. In Formal Name type and enter Dozen.Press Enter twice to accept the data.Use the up arrow or backspace key to position the highlight in the

Type field. Select Compound form the types of units Pop-up menu. Selectdoz as the First Unit. Type and enter 12 as the conversion factor.Select nos as the Second Unit and accept the data. Press enter toreturn to the units menu.

Displaying and altering units of measureGateway of Tally > Inventory Info. > Units of Measure > Display/AlterOnce created, units of measure can be displayed and altered. You can deleteaunit of measure in the alteration screen by pressing [Alt]+[D]. However, youcannot delete a unit of measure that is part of a compound measure. Thecompound measure must be deleted first.

GodownGodown is the place to store goods. Tally allows us to create any number ofGodown and nest into any number of levels.F11 Features: Maintain Multiple Godowns? Yes

Creating single Godown:Gateway of Tally > Inventory Info. > Locations > Create

NameIn the Name field, give the name of the location.


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AddressGive a address of the godown, if required.

UnderGive the location under which this location is to be sub-grouped. Use [alt]+[C] tocreate the parent location. Select primary if it is not a child of any location.

Allow Storage of Materials?Tally permits you to create a location/godown where you may notstore materials at all but treat it as a virtual location. Virtual location areuseful in case like Head Office which may have many different stockpoints under it that store materials. Hence, Head Office acts like aprimary group location. Or , for example, designate London as avirtual location with Wimbledon Warehouse, Harrow Warehouse,Brixton Warehouse as sublocations/ godowns. These sub-locations orgodowns will allow storage of materials.

Displaying and altering stock godownsOnce created, stock locations can be displayed and altered in single

and multiple mode. You can delete a stock location via Single LocationAlter by pressing [Alt]+[D]. However, you cannot delete a stocklocation with sublocations. The lower levels must be deleted first.

Stock ItemStock items are the actual items in stock, and we account for the issued andreceipts of stock at this level.Stock items are the actual items in stock, and we account for the issued andreceipts of stock at this level.Creating Stock Item:

Gateway of TallyInventory InfoSingle Stock Item

In the Name field Enter Sony Disks 3.5

In the under field Select Sony

In the unit field Box of 100 Nos.

Delete a stock itemYou can delete a stock item only if it has not been used form transactionentry.Gateway of Tally > Inventory Info > Stock Items > Single AlterPress [ALT]+[D] to delete the Stock Item

Stock GroupExercise No: 18

a) Journalize the following Transaction in the Book of Anandha Stores2007Aug 01 Anand Started the business Rs.7,00,000

08 Anand Deposit into the Indian Bank Rs.25,00010 Purchase 100 kg Ponni Rice per kg Rs.20.5019 Purchase from Rasi Stores 200 kg Ambai 18 per kg Rs.17Sep 02 Salary for staff Rs.4,50005 Paid Rent for Rs.5,00015 Purchase 50 lit Gingilly Oil per lit Rs.9817 Purchase 300 Hamam soap (100g) per soap Rs.13Paid Stationery Rs. 450


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20 Paid to Rasi Store for Rs.3,400Purchase from Milky & Co 125 Lax Soap per soap Rs.12Oct 01 Purchase 75 Lit VVD Coconut Oil per lit Rs.7805 Paid Salary Rs.4,50015 Purchase 200 Sandal Soap per soap Rs.2118 Sales 125 Hamam Soap (100g) per soap Rs. 15

24 Purchase 100 Hamam Soap (150g) per soap Rs.18 from Haji Store29 Sold to Jeya Traders,50 kg Ponni Rice Rs.2245 kg Hamam Soap (150g) Rs.20Nov 03 Sales Ambai 18, 50kg per Rs.18 and 75 Lax Soap per soap Rs.13to Laxmi Store5 Sales 10 lit VVD Coconut Oil per lit 806 Paid Salary Rs.4,50012 Purchase Weight Machine Rs. 8,00018 Sales 35 lit Gingilly Oil per lit Rs.99.5023 Paid Telephone Bill Rs. 1,20024 Return by Jeya Traders14 kg Ponni Rice

28 Sales 15 Hamam Soap(100g) for cash per soap Rs.15Dec 05 Amount Settled by Jeya Traders7 Paid to Haji Store Rs.1,0008 Paid Salary Rs. 4,50015 Purchase 20 lit Gingilly Oil Rs. 98Stock Group: Rice, Soap, Oil

b)Journalize the following Transaction in the Book of Rahuman & Sons2006Oct 01 Started business with Capital Rs. 10, 00,0002 Opened a Bank account in HDFC Rs. 1,00,000

5 Purchased Stationery item for Rs.5,5006 Purchased Furniture for Rs. 23,0007 Credit Purchased from Guru Store Inv. No. 123Television Rs. 6,000 10 nosFridge Rs. 8,800 15 nosAudio System Rs. 4,500 5 nos10 Credit Purchased from ALM Traders Inv. No. 124Television Rs. 6,500 3 nosFridge Rs. 7,900 5 nos11 Withdraw from Bank Rs. 5,600 for Personal use Ch.no. 09876514 Bought a Computer for Rs.17,000 from Sai System17 Guru Store amount settled through a cheque

18 Sold Goods for CashTelevision Rs. 6,000 5 nosAudio System Rs. 4,500 3 nos19 Paid into Bank Rs. 15,00020 Sold Goods to Varun & Co on CreditTelevision Rs. 7,000 10 nosFridge Rs. 9,000 15 nosAudio System Rs. 5,500 5 nos22 Paid Telephone Charges Rs. 1000


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23 Received cash Rs. 16,000 from Varun & Co24 Paid made by CashPaid to Petty Cash Rs. 2,000Salaries Rs.10,000Wages Rs. 7,000Carriage Inward Rs. 1,500

26 Payment Made by Petty CashConveyance Rs. 200Postage Rs. 150Stationeries Rs. 120Staff Welfare Rs. 200

Stock CategoriesExercise No: 191.4.2007 Kishore Trading Company Started business with cash 80,0004.4.2007 Paid into Bank Rs. 10,0006.4.2007 Purchase from Uthira & Co (Inv.no. 111)Television

BPL Color TV Rs. 7,000 10 nosBPL Black & White Rs. 9,000 12 nosSony Rs. 12,500 10 nosSamsung Rs. 11,200 15 nos9.4.2007 Purchase from Ruba & Sons (Inv. No. 122)ComputerHCL Rs. 12,000 15 nosLG Rs. 10,000 10 nos11.4.2007Credit Sales Hamsa Traders (Inv.No. 1)TelevisionBPL Black & White Rs. 9,500 2 nosSony Rs. 13,500 5 nos

16.4.2007Credit Purchase from Santhosh Electricals (Inv.No. 133)FanUsha Rs. 1,000 5 nosPhilips Rs. 1,200 8 nos20.4.2007Cash Sales (Inv.No.2)ComputerHCL Rs. 12,000 4 nosLG Rs. 10,000 4 nosFanUsha Rs. 1,000 2 nosPhilips Rs. 1,200 4 nos22.4.2004Paid into Telephone Charges Rs. 1,000

24.4.2004Cash PurchaseMixciKanchan Rs. 1,200 5 nosPreethi Rs. 1,500 5 nosButterfly Rs. 1,000 5 nos26.4.2004Payments Made by cashPaid to Petty Cash Rs.20, 000Furniture Rs. 1,500Salaries Rs.10, 000


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Wages Rs. 7,000Carriage Inward Rs. 1,50027-4-2004 Payment Made by Petty CashConveyance Rs. 200Postage Rs. 150Stationeries Rs. 120

Staff Welfare Rs. 200GodownExercise No: 20Journalize the following Transaction in the Book of Reethu Stores01-9-2007 Started Business with cash Rs. 20,00,00002-9-2007 Stationery Items Rs. 5,00003-9-2007 Cash PurchasesGodownItem Rate(Rs.)Pettai

(kg)Town(kg)I.R. 20 18 1500 2000Ponni 20 1000 1300Basmati22 1000 1000I.R. 8 17 2000 5005.9.2007 Purchase from Samir Stores (Invoice No. 44)GodownItem Rate(

Rs.)Junction(kg)Palay(kg)BlackGram35 1000 1000GreenGram25 2500 1400Wheat 18 1800 1500

8.9.2007 Credit SalesLaxman Traders (Invoice No. 1)GodownItem Rate(Rs.)Junction(kg)Palay(kg)


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BlackGram38.50 500 450GreenGram26.50 2000 750

Wheat 20.25 1000 25010.9.2007Purchase from Kalyan Store (Invoice No. 54)GodownItem Rate(Rs.)Junction(lit)Palay(lit)VVD Coconut Oil 22 1000 1000Idahaya Gingilioil

13 2500 1400SunflowerRefined Oil18 1800 150012.9.2007 Received cheque from Laxman Traders From 2,00,00020.9.2007 Payment made by ChequeSamir Stores Rs. 50,000Kalyan Store Rs. 25,00025.9.2007 Payments made by cashPaid to petty Cash Rs. 2,000Furniture Rs. 25,000Salaries Rs. 30,000Wages Rs. 25,000Carriage Inwards Rs. 4,000Rent Rs. 10,000Electricity Charges Rs. 5,430Telephone Charges Rs. 8,34027.9.2007 Payment made by Petty CashConveyance Rs. 250Postages Rs. 300Stationeries Rs. 250Staff Welfare Rs. 200Vehicle Maintenance Rs. 250General Expenses Rs. 15030.9.2007 Depreciate 10% on Furniture

Integrate Accounts with InventoryF11: Features ->F2:InventoryEffect on Balance Sheet and Profit & LossAccountThe option in F11:Features has a significant effect on the BalanceSheet and Profit & Loss Account. If set to Yes, it brings the


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stock/inventory balance figures from the inventory records and providesa drill down to the Stock registers from the Balance Sheet.If it is set to No, it ignores the inventory books figures and picks upmanually entered closing stock balances.Stock records often contain compensating errors caused by wrongallocation to items and the like. The feature enables finalisation of

financial books without waiting for reconciliation of stocks that maytake time.

Allow Zero valueentriesF11: Features ->F2:InventoryTo use zero values in vouchers, activate the feature inF11:CompanyFeatures.There is usually no point in having a voucher that is totally withoutvalue. However, in some situations, zero values are required, for

example,Batch- wise DetailsBatch-wise details are given for maintaining batch informationpertaining to stock items. The various options are activating batch-wisedetails, setting manufacturing date and expiry date. Manufacturing date andexpiry date options can be used only in accordance with batch-wisedetails as per requirements. This is useful for business that deal in goods thathave expiry dates like medicines, food and other edibles. During voucherentry, Date of manufacture of the product defaults to the date of theVoucher.Which can be changed but not to a date later than the voucher date. Expirydate

cannot be a date prior to the voucher date.Tally walk - through to activate batch-wisedetails:1. Return to Gateway ofTally.2. Activate the option Maintain Batch wise details in F11: Features-> Company features -> Inventory Features3. Activate Set Expiry Dates forBatches.4. Accept thescreen.5. From Gateway of Tally go to Inventory

Info6. Create a new stock item - TomotoKetchup7. Create it under Stock Group - Ketchup (create the group if it doesnot exist.8. Put it under Stock CategorySauces.9. Activate the option Maintain in Batches in thatitem.


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10. Track date of Manufacture -yes11. Use Expiry Dates- Yes12. Alter Standard Rates -No13. Rate of Duty -

514. Accept defaults for otheroptions.15. Create a ledgerAnantha Departmental Store under sundry Creditors16. Get back to Gateway of Tally menu an go to voucher entry.17. Press F9: Purchase.18. Create the following entries.19. Date: 02-06-2008. Purchase 150 nos form Anantha DepartmentalStores 120.00. Purchase Invoice number AD/00120. Credit period 20 days.21. After we enter item an item allocation screen will appear,here enter batch no as AD/001 having manufacturing date as

02/06/2008 and expiry date as 1/2/2009.22. Accept the voucher.Exercise: 20Enter the following entries for Batches and Expiry dates:2007 May 01 Kabir invested Rs. 5,00,00002 Paid into HDFC bank Rs. 45,00005 Purchase Computer Rs. 16,00006 Purchase Viva 100 nos for Rs. 260 [Batch no.V201 Expiry date2/12/2007] Rajia & Co8 Purchase Rin 100 gm 500 nos for Rs. 19.50 [Batch no. R301,Expirydate 1-10-2007]Mohana & Co9 Withdraw Cash from Bank Rs. 5,00010 Purchase Maltova 250 nos for 220 [Batch no. M202,Expirydate 1-7-2007]11 Purchase Power Soap 300 nos for 12 50 [Batch no. P302, Expirydate 1-8-2007]12 Paid Salary Rs. 13,00013 Purchase La Soap 130 nos for Rs.11.50 [Batch no. L303, Expirydate 9-10-2007] Mohana & Co14 Sales Viva 25 nos for Rs. 275 to Kavitha Store15 Sales Rin 100 gm 230 nos for Rs. 21 to Kavitha Store25 Purchase Liril 200 nos for Rs.22.50 [Batch no. Li302, Expirydate 11-10-2007]28 Sales La Soap 6 nos for Rs. 12 and Liril 55 nos for 24 to MalarTraders2007 June 02 Purchase Maltova 250 nos for 220 [Batch no. M202, Expirydate 1-7-2007] from Rajiya & Co16 Purchase Power Soap 300 nos for 12 50 [Batch no. P302, Expirydate 1-8-2007] from Mohana & Co17 Paid Rent Rs. 3,00018 Paid Telephone Bill Rs. 3,40019 Paid Salary Rs. 13,000


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20 Purchase La Soap 100 nos for Rs.11.50 [Batch no. L303, Expirydate 9-10-2007] from Mohana & Co21 Sales Maltova 25 nos for Rs. 230 to Jerry Store22 Sales Power Soap 230 nos for Rs. 13 to Jerry Store29 Paid Electricity Bill Rs. 2,30030 Withdraw Cash for Personal use Rs. 1,300

2007 Sep 04 Purchase Boost 50 nos for 230 [ Batch No. B203, Expiry date 25-9-2009] 11 Paid Salary 13,00013 Paid Rent Rs. 3,00023 Sales La Soap 60 nos for 13 [Batch no. L303, Expiry date 9-10-2007]24 Purchase Lux 300 nos for Rs. 15 [Batch No. Lx304, Expiry date 11-11-2007] from Mohana&Co25 Sales Lux 150 nos for Rs.16.50 to Nirupama Store

Use Different Actual & Billed QuantityThis option enables you to specify quantities, that are differentfrom that delivered, when invoicing, and record the fact. It is possiblethat you have delivered goods but some of them are in dispute andyour customer wishes to be invoiced for only the quantity that heagrees to. He may consider the rest later and would then like to beinvoiced. On the other hand, the rest is so bad that it is useless even foryou to take back. Hence, you can record the fact when raising theinvoice without altering the delivery note or passing a rejectionentry. Select this option if you have many such occasions.Normally, the Billed and Acutal quantity is same when we set theoption Use different Actual and Billed Qty to No in F11: Features.However the quantity deliverd/ received may be different fromquantity billed ub same cases as:i. Free items are received or given.( Free & sold items are same.For example, 1 box of Surf Excel is given free on every 5 box ofsurf excel.iii. Free items are received or given. (Free & sold items aredifferent).For example, one piece of 100gm Promise tooth pase given freeon every 5 box Surf Excel.iv. The billing quantity is rounded offv. Invoicing in Part.If the Billing quantity is different from actual quantity, to enterboth quantities in transaction, we need to activate option Usedifferent Acutal& billed qty under F11: Features -> F2: Inventory . Consquently

during transaction entry, we wil be prompted to enter 2 quantities,i.e., Actual and billed. Actual Quantity will update stock and BilledQuantity will be used to compute transaction value.

Exercise: 2120.10.2006 Purchased the following items from Omega InfoTech in an saleoffermadeby them. The offer was that on every purchase of 5 items one item isgiven free. He purchased the following items and agreed to make


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payment with in 10 days.Items Purchased Free of Total RateQuantity cost QuantityProcessors 25 5 30 5200Hard Disks 20 4 24 3200Printers 20 4 24 5100

Monitor 20 4 24 10500UPS 20 4 24 170025.10.2006 Vimal introduced the sale offer and sold thefollowing items on creditParamount Services and Peripherals:Items Purchased Free of Total RateQuantity Cost QuantityProcessors 25 5 30 6800Hard Disks 20 4 24 350028.10.2006 I Tech PeripheralsItems Purchased Free of Total RateQuantity Cost Quantity

Printers 10 4 14 6000Monitor 12 4 16 11000UPS 20 4 24 2300

Order With Tracking NumberIn Tally, order processing is linked to inventories. You can track the order position ofa stock item, knowwhat goods that were ordered have arrived, whether you have fulfilled the orders ontime and what is thedelay, if any.In this module, you learn how to record purchase orders, and to call the orders whileentering apurchase invoice and likewise with sales orders and sales invoices.

You will also learn how to display outstanding orders position and the effect of orderson stocks.Remember, orders do not affect financial records nor do they update inventories.Activate Sales and Purchase Order Processing in F11: Company Features.

Activate Tracking numbers in F11: Company Features, if it is not already activated.In this unit,you will use Not Applicable for Tracking Numbers. We will take up entries usingTrackingnumbers in the next unit.

Create a stock item Bricks with unit of measure Pcs. This is tradeable item as wellas to be usedfor construction. Stock will be maintained. Hence, Treat all Purchases as Consumedshould be

set to No. Create a Supplier - Universal Bricks with bill-wise activated and no interestcalculation.

Purchase Order ProcessingPurchase Order details will also depend on configuration settings. Hence, have a lookat theconfiguration and voucher types.Activate Accounting allocations in Order Entry.

Enter a Purchase Order


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1. Return to Gateway of Tally.2. Select Voucher Entry->F9: Purchase ->Select Purchase Order(Alt+4)3. Voucher date: 15/12/08. Party's A/c Name: Universal Bricks4. Order No: The voucher number will be your Purchase Order number. This particularOrderNo. field is an additional field to record order number if different from the voucher

number.5. Name of the item: Bricks. (Once the name is given the Item Allocations subscreenpops-upthat needs to be filled in.)6. Due on: 25/12/08 - The due date for delivery of the item. This will enablemonitoring ofoutstanding deliveries. The order can be split for delivery on different dates.7. Location: Warehouse. (in case multiple location feature is active, this field isrequired to begiven, else it does not appear.)8. Quantity, Rate and Amount - 5000 Pcs @ 3 per Pc. The amount is calculated but ismodifiableto enable rounding off.

Item allocation sub-screen: Next Item: Since no other item is required, press [Enter] on the blank field to takethe cursor tothe tax/expense field.

Expense/Tax: Once the item details have been entered, you might specify tax to bechargedand other expenses like freight, if any. The tax or expense has to exist as a ledgeraccount orit may be created using [alt]+[C]. Select Freight @3% on the item values.

Narration: Optional.

Alter a Purchase OrderYou can alter a Purchase Order by displaying it from a variety of places but is easierthrough the

Purchase Orders Book or the Day Book.Gateway of Tally ->Display -> Day Book or Gateway of Tally, Inventory Books,Purchase Order Book.

Sales Order Processing :--Create Sales OrdersSales order entry is exactly like Purchase Orders.Sales Order details will also depend on configuration settings. Hence, have a look atthe configurationand voucher types.1. Gateway of Tally->Voucher Entry ->F8:Sales ->Select Sales Order (Alt+5)2. Voucher date: 16/12/08. Party's A/c Name: Wimbledon Properties3. Order No: The voucher number will be your internal serial number. This particularOrder No.

field is for the customer's order number which is different from the voucher number.EnterWP/5.4. Name of the item: Bricks.5. Due on: 26/12/08.The due date for delivery of the item. This will enable monitoringofoutstanding deliveries. The order can be split for delivery on different dates.6. Location: Warehouse.7. Quantity, Rate and Amount - 4000 Pcs @ 5 per Pc.


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8. Next Item: Since no other item is required, press [Enter] on the blank field to takethe cursor tothe tax/expense field.9. Expense/Tax: Once the item details have been entered, you might specify tax tobe chargedand other expenses like freight, if any. The tax or expense has to exist as a ledger

account or itmay be created using [alt]+[C]. Select or create Tax @ 17.5% to be charged on theitemvalues.

Alter a Sales OrderYou can alter a Sales Order by displaying it from a variety of places but is easierthrough the SalesOrders Book or the Day Book.Gateway of Tally->Display-> Day Book or Display, Inventory Books, Sales OrderBook.

View Order positionStock summary is perhaps the best place to view the order position.Gateway of Tally -> Stock Summary ->Detailed [F1]

Currently, all you see is the closing balances or stock in hand as on the last day ofthe period. However,you do not know how much stock is on order both inward and outward. if you knewthat, you could takeplan your stocks better and not lose out on orders.1. Press the Orders button [alt]+[F7]2. Select Sales Orders Outstanding3. Type No for Due orders only.You are now in Sales Order Outstanding screen showing On Order items. Of course,you haveonly Bricks on order4. Select the line Bricks and press Enter.The outstanding Sales order for Bricks is detailed.

5. Select F12:Configuration.6. Select Yes to all options.You now see your Order Analysis with Sales and Purchase Orders outstandingposition for the stockitem Bricks.1. Return to the Stock Summary screen2. Select Detailed3. Press [alt]+[n] Auto-Column Button.4. Select Orders & Stock Details.5. Remove Rate and item from display by configuring it using F12.This will enable all columns to fit in one screen. Take note of the change in figures.Can you accept an order for 2000 bricks ?6. You may further drill down into each column to view greater detail. In the Stock

Summaryscreen, you can even bring up a new column using [alt]+[C] the New Column buttonand getmore options for detail. Experiment with Types of Values to get familiar with them.They arepowerful and give great business information.

Adjust OrdersYou adjust orders at the time of raising delivery notes and invoices.1. Select Voucher Entry2. Select Purchase -> Purchase


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The choices for periods are: Days, Weeks, Months and Years. Note that it is not theaverageconsumption for the period but the total consumption. Enter zero (0), if you do notwantTally to calculate the reorder level based on the consumption of the item in the past.Criteria

Choose whether you want the higher/lower of the two, i.e., input/calculatedlevel/quantity.Rounding MethodSpecify whether the calculated level/quantity must be rounded and also the methodofrounding.Minimum order quantityYou can specify the minimum order quantity required.

Tracking NumberYou were buying and selling goods or services where the stock would beaffectedwhen making the purchase or sales entry. Many businesses deliver stock witha

delivery note or a challan. The bill is raised later. The bill has to be linked ortracked with the goods already delivered. In Tally, tracking numbers do thejob.Tracking numbers allow Goods Receipt and Goods Delivery Notes for goodsnotaccompanied by an invoice to be linked with the invoice that is raised later.Ofcourse, Tally permits the opposite too. A bill can be raised first and the goodsdelivered. Again, tracking numbers do the trick.Tally walk-through for using tracking numbers1. Go to voucher entry.2. Select Purchase, Receipt Note.

3. Enter the following transaction:4. On 12/12/98 - Ref GRN/UB - 1000 Pcs of Bricks received from UniversalBricks @2 per Pc.5. For Bricks, select Tracking Number GRN/UB and give item details.6. Press Enter on the blank Tracking number to return to the main voucher.7. Accept the voucher and Return to Gateway of Tally8. Select 'Display', 'Statements of Inventory', and then 'Purchase BillsPending'.Purchase Bills Pending screen:1. Tally tracks down the Goods received but whose bills have not beenreceived.2. View the Profit & Loss Account and the Purchase Accounts.

3. Tally provides the purchase so that the profits are correctly arrived at.4. View the Balance Sheet, Sundry Creditors. Has Tally provided for theliability?5.Tracking numbers - track bills with goods deliveredNow go back to Voucher Entry1. On 15/12/08, you receive the purchase bill no UB/15 from Universal Bricksfor their Delivery Note no GRN/UB for 1000 Pcs of Bricks @ 2 per Pc. You get


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30 days credit.2. Select Purchase, PurchaseRef: UB/15Cr Universal Bricks 2000Billwise UB/15 30 days 2000Dr Project Purchase 2000

3. Inventory Allocation Tracking Number: Select GRN/UB. Note UB/15 is also listed there. Do notselect this. Accept the other information that is filled up. Press Enter on the blankTracking number to return to the main voucher.4. Cost Centre is activated for Project Purchase. Select Projects andAssignments Category and Buildings Cost centre.5. Accept the voucher.6. Now go back to Purchase Bills Pending. Is there anything pending?Exercise No: 22

a)

1.4.2008 Received Capital By Cash Rs.5,00,0001.4.2008 Cash Deposited in SBI Rs.2,00,0005.4.2008 Purchase Order Made to Rahul Textiles [P.O.N0.101]5.4.2009 Due 12.4Cotton Sarees 50 nos at Rs.300Chudithar 50 nos at Rs.4007.4.2008 Purchase Order Made to Kiran Textiles [P.O.N0.102]Due 15.4Cotton Sarees 75 nos at Rs.300Chudithar 60 nos at Rs.40010.4.2008 Purchase Order Made to Sona Textiles [P.O.N0.103]Due 25.4

T-Shirts 100 nos at Rs.100Jeans 100 nos at Rs.100010.4.2008 Purchase invoice raised for the Order 102 [Bill No.1234]12.4.2008 Received Materials For the Purchase Order From Sona Textiles[P.O.N0.103] [RN.NO 567]15-4-2008 Returned T-Shirts 10 nos, Jeans 5 nos [RN.NO.567]20-4-2008 Purchase invoice raised for Sona Textiles [Bill No.5678]18-4-2008 Sales Order Received From Arjun Stores [SO.NO.111]Due Date 25/4Cotton Sarees 60 nos 500Chudithar 40 nos 75022.4.2008 Sales Order Received From Brinkley Garments

[SO.NO.118] Due Date 30/4T-Shirts 60 nos 150Jeans 60 nos 130027.4.2008 Sales Invoice Raised For Sales Order NO 111[Arjun Stores] + TNGST 4%29.4.2008 Delivery Note Given For Brinkley Garments For Sales Order No.118[DN.NO.556]1-5-2008 Returns From Brinkley GarmentsT-Shirts 10 nos


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Jeans 5 nos5.5.2008 Sales Invoice Raised For The Delivery Note 556

b)Kiran Electricals Started Business of Electrical items1.8.2002 Received Cash For Capital Rs.8,00,000/-1.8.2002 Deposited in UCO Bank Rs.3,00,000/-7.8.2002 Purchase Order Made to Nithya Fan House [NO.124] [Due Date14/8]Ceiling Fan 500 nos @ Rs.1500Table Fan 500 nos @ Rs.120010.8.2002 Purchase Order Made to Athi Electricals [NO.111] [Due Date 18/8]Ceiling Fan 150 nos @ Rs.1500Table Fan 150 nos @ Rs.120014.8.2002 Purchase Invoice Raised For Order NO.12419.8.2002 Received Materials For the Purchase Order NO.111 throughReceiptNote NO.12

20.8.2002 Returned 10 nos of the Ceiling Fan & 5 nos of Table Fan For theOrderNO.12422.8.2002 Sales Order Received From Akshai Traders [NO.2,Due Date 1/9]Ceiling Fan 300 nos @ Rs.2000Table Fan 300 nos @ Rs.15001-9-2002 Raised Sales Invoice For the Order NO.2 with Sales Tax @ 4%2.9.2002 Sales Order Received From ABI Traders [3.Due Date 10/9]Ceiling Fan 200 nosTable Fan 200 nos10-9-2002 Delivery Note Raised For the Order NO.312.9.2002 Returned 5 nos of Ceiling Fan.Table Fan

14-9-2002 Sales Invoice raised For the Order NO.3Track Additional Cost Of PurchaseNormally, in case of purchase, taxes etc, are also considered to be partof purchase and we may wish to debit purchase account only for theentire cost. With this feature, without debiting separate account, we mayget breakup of basic price as well as additional cost incurred, resultinginto the Effective Rate on various inventory reports.For Example,Athi & Co purchased the following componentsCPU 50nos 15000Keyboard 50nos 7000At the time of purchase of components, they spent additional cost such

asCarriage 15000Packing charges 2000F 11 Features Activate the optionsTrack Additional Cost of Purchase - Yes

Create ledger Under Sundry CreditorAthi & Co

Create an Unit of Measure Nos as Shown below:


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Create a stock item as CPU

Pass purchase EntryAfter entering the purchase go to Display Inventory Books Movement Analysis Stock Item Analysis Select the ItemExercise: 23a)On 1/1/2005 Received capital by cash Rs. 5, 00,000On 2/1/2005 Deposited in ICICI Bank Rs. 2, 00,000On 5/1/2005 Purchased from GTL 500 Nos. of Lux Soaps @ 15/NoSales Tax 4%Packing Rs. 500Carriage Rs. 700[Create bill no. Credit days 30]On 8/1/2005 Purchased from GTL 500 Nos. of Power Soaps @ 10/NoSales Tax 4%Packing Rs. 700Carriage Rs. 1000[Create bill no. Credit days 30]On 20/1/2005 Purchased from GTL 200 Nos. of Arial Powder @ 50/NoSales Tax 4%Packing Rs. 750Carriage Rs. 1200[Create bill no. Credit days 30]On 31/1/2005 Paid to GTL for all the products. Discount received 5 %b)Rahuvar & Sons purchased the following componentsCPU 100 Nos 15000Keyboard 100 Nos 7000Mouse 100 Nos 1500IC Chips 150 Nos 1000At the time of Purchase of components they spent additional cost such asCarriage 15,000Tax 4%Packing Charges 20,000Labour Charges 5,000

Bill of MaterialsA Bill of Materials contains a list of items that make up another item.Inother words, it is a list of constituent items for a product.Enable Bill of Materials FacilityTo activate or enable Bill of Materials go to Gateway of Tally, Click on F12:

Configure and select Accounts/inventory Info from the menu. Now say yes to"Allow component list details (Bill of Materials)?"A Bill of Material should be available while manufacturing an item. Hence,firstenable manufacturing entries. This is done through a stock journal.Create a new manufacturing journalCreate a new voucher type called Manufacturing Journal under StockJournal.


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1. To create a new Manufacturing Journal go to Gateway of Tally. Select AcctsInfo, Voucher Type and then Create.2. Give Mfg.Journal (Manufacturing Journal) as the name and under ' Vouchertypes' select Stock Journal.3. Follow the normal Voucher type creation as explained earlier for the rest.4. Select Yes for "Use as Manufacturing Journal" and accept the screen.

Create a Bill of MaterialYou can create a Bill of Material (BoM) for any stock item. Typically, youwould liketo create a BoM only for those items that are being manufactured. You willspecifya BoM at the time of creating a stock item or altering its master.Tally walk-through to specify its Bill of MaterialsJC Computer Supplies decides to get into the business of Televisions.They want to assemble their own televisions and sell them.Therefore,1. Create a stock item Television. Create it under a new stock group HomeElectronics.

2. Unit of measure - nos.3. Say Yes to "Set Components (BoM)?"4. Once this is made to yes it takes you to a screen where you can enter 1each for Unit of Manufacture and items VDU, Picture tube, IC Chips, SoundCardand aerial which are required for the assembly of one Television. These itemsdo not exist. Create them and group them under a stock group TelevisionParts. Unit of measure - nos.5. Give Standard Cost for each of the items as follows:-6. VDU - 2000, Picture Tube - 3750, Sound Card - 500, IC Chips - 5000, Aerial-300.7. You propose to store them On-Site. Accept the screen. Accept all otherdefaults. None of the items will have any opening stock balance.The purpose of creating a bill of material is to enabl

basics of tally

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