I-Tech Computer Education

INDEX
Introduction2
Basic Concepts of Accounting.4
Complete Book-Keeping..12
Basic Financial Management.25
Advanced Financial Management33
Basic Inventory Management39
Advanced Inventory Management..49
The Technology Advantage of Tally.ERP 9.67
Statutory Compliance Capabilities in Tally.ERP 9..........82
Payroll Compliance in Tally.ERP 9..112
Practical Assignments.125

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Introduction
Tally.ERP 9 - Its Fast, Powerful, Scalable And very reliable!
Simply the Best Tally.ERP 9 is the worlds fastest and most powerful concurrent Multi-lingual
business Accounting and Inventory Management software. Tally.ERP 9, designed exclusively to
meet the needs of small and medium businesses, is a fully integrated, affordable and highly reliable
software. Built on the proprietary technology of Tally Solutions - C:MuLATE (Concurrent Multilingual Accelerated Technology Engine) - Tally.ERP 9 is a perfect fusion between the path-breaking
Concurrent Multi-lingual Platform and an Object Oriented Database Engine. Technology on which
someday all business accounting solutions will be built.
Tally.ERP 9 is easy to buy, quick to install, and easy to learn and use. Tally.ERP 9 is designed to
automate and integrate all your business operations, such as sales, finance, purchasing, inventory,
and manufacturing. With Tally.ERP 9, accurate, up-to-date business information is literally at your
fingertips anywhere. The powerful new features and blazing speed and power of Tally.ERP 9
combine with enhanced MIS, Multi-lingual, Data Synchronization and Remote capabilities help you
simplify all your business processes easily and cost-effectively.

The Tally.ERP 9 encompasses the following salient features:

Simplicity: Tally.ERP 9 is simple, easy to setup and use. It also allows easy Keyboard operations.
It requires basic knowledge of Accounts and English to use it.

Speed: Tally.ERP 9 provides the capability to generate instant and accurate reports, which assists
the management to take timely and correct decisions for the overall productivity and growth of the
company.

Power: Tally.ERP 9 allows the user to maintain multiple companies and with unlimited levels of
classification & grouping capabilities. It also allows drill down facility from report level to transaction
level.

Flexibility: Tally.ERP 9 provides flexibility to generate instant reports for any given period
(month/year) or at any point of time besides providing the facility to toggle between Accounting &
Inventory reports of the same company or between companies.

Scalability: Tally.ERP 9 suits to any style of business needs and eliminates the necessity for a
business to change its style of operation, in order to adapt to the application.

Concurrent multi-lingual capability: Tally.ERP 9 offers you the exclusive capability of

maintaining your accounts in any Indian language, viewing them in another language and printing
them in yet another Indian language.

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Real time processing: Immediate posting & updation of books of accounts as soon as the
transactions are entered, thereby facilitating instant statements & Reports. It also faciliaties realtime multi-user environment.

Accounting without Codes: Tally.ERP 9 allows accounting with the regular names (the way
you spell them or use in normal parlance) without any account codes.

Technical support: Timely support is available from our experts at the Tally Service Partners
(TSPs)

Online Help: The Tally.ERP 9 Online Help (Alt+H) provides instant assistance on basic and
advanced features or any other relevant topics of Tally.ERP 9.

Tally.NET: is an enabling framework which establishes a connection through which the remote
user can access the Clients data without copying / transferring the data.

Remote Access: Tally.ERP 9 provides remote capabilities to access the data from any-where
and anytime.

Control Centre: works as an interface between the user and Tally.ERP 9 installed at dif-ferent
sites and enables the user to centrally configure and administer Site/User belonging to an account.

Support Centre: allows a user can directly post his support queries on the functional and
technical aspects of the Product.

Auditors Edition: Tally.ERP 9 offers a special Auditors Edition of Tally.ERP 9, which pro-vides
auditing and compliance capabilities exclusively for Chartered Accountants.

Basic concept of accounting

Accounting: It is an art of recording, classifying and summarizing in significant manner and in
terms of money, transactions and events which are of financial character and interpreting the
results thereof.

Business Transaction: A business transaction is The movement of money and moneys worth
form one person to another. Or exchange of values between two parties is also known as
Business Transaction.

Purchase: A purchase means goods purchased by a businessman from suppliers.

Sales: Sales is goods sold by a businessman to his customers.
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Purchase Return or Rejection in or Outward Invoice: Purchase return means the return of
the full or a part of goods purchased by the businessman to his suppliers.

Sales Return or Rejection out or Inward Invoice: Sales return means the return of the full or
a part of the goods sold by the customer to the businessman.

Assets: Assets are the things and properties possessed by a businessman not for resale but for
the use in the business.

Liabilities: All the amounts payable by a business concern to outsiders are called liabilities.
Capital: Capital is the amount invested for starting a business by a person.
Debtors: Debtor is the person who owes amounts to the businessman.
Creditor: Creditor is the person to whom amounts are owed by the businessman.
Debit: The receiving aspect of a transaction is called debit or Dr.
Credit: The giving aspect of a transaction is called credit or Cr.
Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from his
business for his personal, private and domestic purpose. Drawings may be made in the form cash,
goods and assets of the business.

Receipts: It is a document issued by the receiver of cash to the giver of cash acknowledging the
cash received voucher.

Account: Account is a summarized record of all the transactions relating to every person, every
thing or property and every type of service.

Ledger: The book of final entry where accounts lie.

Journal entries: A daily record of transaction.
Trail Balance: It is a statement of all the ledger account balances prepared at the end of
particular period to verify the accuracy of the entries made in books of accounts.

Profit: Excess of credit side over debit side.

Profit and loss account: It is prepared to ascertain actual profit or loss of the business.
Balance Sheet: To ascertain the financial position of the business. It is a statement of assets and
liabilities.

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Types of accounts
Personal account: Personal accounts are the accounts of persons, firms, concerns and
institutions which the businessmen deal.

Principles: Debit the receiver

Credit the giver

Real Account: These are the accounts of things, materials, assets & properties. It has physical
existence which can be seen & touch. Ex. Cash, Sale, Purchase, Furniture, Investment etc.

Principles: Debit what comes in

Credit what goes out

Nominal account: Nominal account is the account of services received (expenses and Losses)
and services given (income and gain) Ex. Salary, Rent, Wages, Stationery etc.

Principles: Debit all expense/losses

Credit all income/ gains
Tally is a complete business solution for any kind of Business Enterprise. It is a full fledged
accounting software.

Version Used till Date

Versions
4.5
5.4
6.
7.2
8.1
9.0

Features in Versions
Only purchased and sales voucher.
Sales, purchased, payment, receipt Voucher
Additionally stock entries added i.e. Inventory Info And
Inventory Vouchers
Taxation is added with the previous entries such as VAT,
Service Tax, TDS,
Only multiple Languages is added so it was used for
Different regional languages and for different countries
FBT, TCS, Payroll, and Form16A is added.

Tally ERP 9 Excise is added and it becomes customization for multi-user.

Define the Different Types of Accounts:

Purchase: A purchase means goods purchased by a businessman from suppliers.
Sales: Sales is goods sold by a businessman to his customers.

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Purchase Return or Rejection in or Outward Invoice : Purchase return means the return of
the full or a Part of goods purchased by the businessman to his suppliers.

Sales Return or Rejection out or Inward Invoice: Sales return means the return of the full or
a part of the goods sold by the customer to the businessman.

Assets: Assets are the things and properties possessed by a businessman not for resale but for
the use in the business.

Liabilities: All the amounts payable by a business concern to outsiders are called liabilities.
Capital: Capital is the amount invested for starting a business by a person.
Debtors: Debtor is the person who owes amounts to the businessman.
Creditor: Creditor is the person to whom amounts are owed by the businessman.
Debit: The receiving aspect of a transaction is called debit or Dr.
Credit: The giving aspect of a transaction is called credit or Cr.
Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from his
business for His personal, private and domestic purpose. Drawings may be made in the form cash,
goods and assets of the business.

Receipts: It is a document issued by the receiver of cash to the giver of cash acknowledging the
cash Received voucher.

Account: Account is a summarized record of all the transactions relating to every person, every
thing or Property and every type of service.

Ledger: The book of final entry where accounts lie.

Journal entries: A daily record of transaction.
Trail Balance: It is a statement of all the ledger account balances prepared at the end of
particular Period to verify the accuracy of the entries made in books of accounts.

Profit: Excess of credit side over debit side.

Profit and loss account: It is prepared to ascertain actual profit or loss of the business.
Balance Sheet: To ascertain the financial position of the business. It is a statement of assets and
Liabilities.

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Current asset: It is converted into cash within a year. Ex. Bills receivable
Direct expenses: These are the expenses which are directly related to manufacturing of goods.
Ex. Wages, factory rent, heating, lighting etc

Indirect expense: These are the expenses which are indirectly related to manufacturing of
goods. Ex. Salary, rent, stationery, advertisement, printing

Depreciation: Decrease the value of the asset.

Sundry debtors: The person who is the receiver or customer
Sundry creditors: The person who gives or supplier.
Expenses Outstanding or Unpaid expenses or Expenses due : Expenditure incurred
during current year but the amount on which is not yet paid. (Added to the expenditure on the debit
side and entered on the liability side.)

Income received in advance or Income received but not earned Income received during
the current year but not earned or a part of which relates to the next year. (Deducted from the
concerned income on the credit side and entered on the liability side)

Prepaid advance or Expenses or Prepaid expenses Expenditure paid during current year
but not incurred or a part of which relates to the next year is called Expenditure prepaid. (Deducted
from the concerned expenditure on the debit side and entered on the Assets side)

Income outstanding or income earned but not received or Income accrued Income
outstanding means income earned during the current year but the amount on which is not yet
Received (added to the concerned income on the credit side and entered on the asset side)

Shortcut Keys:
Alt+F3

Company information menu

Enter

To accept information typed into a field. To accept a voucher or master.

Esc

To remove what has been typed into a field. To exit a screen. To indicate
you do not want to accept a voucher or master.

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Ctrl+A

To accept a form wherever you use the key combination the screen or
report will be accepted as it is on this screen.

Ctrl+Q

It quits the screen without making any changed to it.

Alt+C

To create a master at a voucher screen. When working within an amount

field presses Alt+C to act as a calculator.

Alt+D

To delete a voucher. To delete a master.

Ctrl+Enter

To alter a master while making an entry or viewing report.

F2

Date

Alt+F2

Change period

Alt+F1

To see detail

F11

Features company

F12

Configuration options are applicable to all the companies in a data

directory.

Ctrl+N

Calculator screen.

Ctrl+V

Voucher mode (Cr. Dr)

TYPES OF GROUPS
Bank account
Bank Od account
Branch/division
Capital account
Cash in hand
Current asset
Current liability
Deposit
Direct expenses
Direct income
Indirect expense
Indirect income
Duties and tax
Fixed asset
Investment
Loans and advance

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Loan (liability)
Miscellaneous expenses
Provisions
Retained earning
Reserves and surplus
Purchase account
Sales account
Secured loan
Stock in hand
Sundry debtors
Sundry creditors
Suspense
Unsecured account

Meaning:
Current asset: It is converted into cash within a year. Ex. Bills receivable
Direct expenses: These are the expenses which are directly related to manufacturing of goods.
Ex. Wages, factory rent, heating, lighting etc

Indirect expense: These are the expenses which are indirectly related to manufacturing of
goods. Ex. Salary, rent, stationery, advertisement, printing

Depreciation: Decrease the value of the asset.

Sundry debtors: The person who is the receiver or customer
Sundry creditors: The person who gives or supplier.
Expenses Outstanding or Unpaid expenses or Expenses due: Expenditure incurred
during current year but the amount on which is not yet paid. (Added to the expenditure on the debit
side and entered on the liability side.)

Income received in advance or Income received but not earned Income received during
the current year but not earned or a part of which relates to the next year. (Deducted from the
concerned income on the credit side and entered on the liability side)

Prepaid advance or Expenses or Prepaid expenses Expenditure paid during current year
but not incurred or a part of which relates to the next year is called expenditure prepaid. (Deducted
from the concerned expenditure on the debit side and entered on the assets side)

Income outstanding or income earned but not received or Income accrued Income
outstanding means income earned during the current year but the amount on which is not yet
received (added to the concerned income on the credit side and entered on the asset side)

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Ledger & Group Creation

Ledger

Group

Opening stock
Purchase
Purchase return
Fright charges
Carriage inwards or Purchases
Cartage and coolie
Octroi
Manufacturing wages
Coal, gas, water
Oil and fuel
Factory rent, insurance, electricity,
lighting and heating
Sales
Salary
Postage and telegrams
Telephone charges
Rent paid
Rates and taxes
Insurance
Audit fees
Interest on bank loan
Interest on loans paid
Bank charges
Legal charges
Printing and stationery
General expenses
Sundry expenses
Discount allowed
Carriage outwards or sales
Traveling expenses
Advertisement
Bad debts
Repair renewals
Motor expenses
Depreciation on assets
Interest on investment received
Interest on deposit received
Interest on loans received
Commission received
Discount received
Rent received
Dividend received

Stock in hand
Purchase account
Purchase account
Direct expenses
Direct expenses
Direct expenses
Direct expenses
Direct expenses
Direct expenses
expenses
Direct expenses
Sales account
expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect expenses
Indirect income
Indirect income
Indirect income
Indirect income
Indirect income
Indirect income
Indirect income

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Bad debts recovered
Profit by sale of assets
Sundry income
Loan from others
Bank loan
Bank overdraft
Bills payable
Sundry creditors
Mortgage loans
Expense outstanding
Income received in advance
Other liabilities
Capital
Drawings
Cash in hand
Cash at bank
Fixed deposit at bank
Investments
Bills receivable
Sundry debtors
Closing stock
Stock of stationery
Loose tools
Fixtures and fittings
Furniture
Motor vehicles
Plant and machinery
Land and building
Leasehold property
Patents
Goodwill
Prepaid expenses
Income outstanding

income
Indirect income
Indirect income
Loan Liabilities
Loan Liabilities
Bank OD
Current Liabilities
Sundry creditors
Secured loans
Current Liabilities
Current Liabilities
Current Liabilities
Capital account
Capital account
Cash in hand
Bank account
Deposit
Investments
Current asset
Sundry debtors
Stock in hand
Current asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Fixed asset
Current asset
Current asset

Complete Book-Keeping
Tally.ERP 9 maintains all books of accounts starting from record of vouchers to ledgers etc. You
can use different types of vouchers like payment, receipt, sales, purchases, receipt notes, delivery
notes and adjustment entry vouchers like journals, debit & credit notes. Tally.ERP 9 inherits the

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principle of double entry system of book keeping and thus reduces possibilities of errors during
voucher entry.

Simple & Easy Voucher Entry

Tally.ERP 9 provides flexibility to use predefined voucher types, comprising of accounting and
inventory voucher types to record various business transactions. It also allows you to use Keyboard
shortcut Keys as well as mouse operations during voucher entry.

User-defined Voucher Types

To create a new Voucher Type, Tally.ERP 9 provides predefined vouchers and also allows you to
create different types of vouchers and record, classify & segregate vouchers as per your
requirements. For e.g. you can further classify payment vouchers, by creating voucher types with
the names Bank Payment and Cash Payment. Tally.ERP 9 provides flexibility to use predefined
voucher types, comprising of accounting and inventory voucher types to record various business
transactions. It also allows you to use Keyboard shortcut Keys as well as mouse operations during
voucher entry.
Go to Gateway of Tally > Accounts Info. > Voucher Type > Create
Enter the Voucher name
Specify the Type of voucher
Specify the Method of numbering
Activate or deactivate the other functions as required

Flexible Voucher Numbering

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Tally.ERP 9 also allows you to set the voucher numbering as per your needs, which is either
automatic or manual or none. Further, you can also assign a Prefix / Suffix or both along with the
Voucher number and define the periodicity of restarting Voucher numbers during entry i.e., either
from the beginning of every day, month, week, year or never.
From the above Voucher Type Creation / Alteration screen,
Specify the Method of Voucher Numbering

Specify the Advance Configurations for Voucher Numbering, as required

Books & Registers

Tally.ERP 9 provides you capability to generate various books and registers for any specific period
viz., month, date, and year and as on date. In Tally.ERP 9, once voucher entry is made, the
transactions are automatically & immediately in the Day Book and other Books of Accounts without
any additional effort. Tally.ERP 9 allows you to maintain and generate all primary books of accounts
and registers like
Cash Book
Bank Book
Purchase Register
Sales Register
Journal Register
Debit Note Register
Credit Note Register
General Ledger

Cash Book
To generate Cash Book, Go to Gateway of Tally > Display > Account Books > Cash / Bank
Book(s)
Select the required Cash Ledger Account
Press Enter on the required month to view Cash transactions for a month

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Bank Book
To generate Bank Book,
Go to Gateway of Tally > Display > Account Books > Cash / Bank Book(s)
Select the required Bank Account
Press Enter on the required month to view Bank transactions for a month

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Purchase Register
To generate Purchase Register,
Go to Gateway of Tally > Display > Account Books > Purchase Register
Press Enter on the required month to view Purchase Transactions for a month

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Sales Register
To generate Sales Register,
Go to Gateway of Tally > Display > Account Books > Sales Register
Press Enter on the required month to view Sales Transactions for a month.

Sales Register
To generate Sales Register,
Go to Gateway of Tally > Display > Account Books > Sales Register
Press Enter on the required month to view Sales Transactions for a month.

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Journal Register
To generate Journal Register,
Go to Gateway of Tally > Display > Account Books > Journal Register > Journal Register
Press Enter on the required month to view Journal Entries for a month.

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Debit Note Register

To generate Debit Note Register,
Go to Gateway of Tally > Display > Account Books > Journal Register > Debit Note Register
Press Enter on the required month to view Debit Notes for a month.

Credit Note Register

To generate Credit Note Register,
Go to Gateway of Tally > Display > Account Books > Journal Register > Credit Note Register
Press Enter on the required month to view Credit Notes for a month or press F2 and specify the
period.

Day Book
To generate Day Book,
Go to Gateway of Tally > Display > Day Book Specify the required period to view transactions
entered for that particular day, week and year or for any specified period.

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Statements of Accounts
Tally.ERP 9 provides you capability to generate, print, mail or upload various Financial Statements
and reports viz., Balance Sheet, Profit & Loss A/c, Trial Balance, Cash Flow, Fund Flow,
Receivables, Payables & Stock Statements and so on.

Receivables and Payables Management

Accounts Receivables are the amounts that you are to receive from the sundry debtors while
Accounts Payables are the amounts you have to pay to sundry creditors. Tally.ERP 9 provides
complete bill wise information of amounts receivable as well as payable, either on party wise, group
wise or Billwise. This feature tracks bills, payments/receipts including advances on one-to-one
basis.

To view Outstanding:
Set Maintain Bill-wise Details to Yes in F11: Accounting Features.
Create a Party (Ledger A/c) under Sundry Debtors / Sundry Creditors group.
Set Maintain balances bill by bill to Yes for the parties during ledger creation.

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Go to Gateway of Tally > Accounting Vouchers > Sales (F8) or Purchase (F9) accord-ingly and
enter the transaction by specifying a Bill reference No. along with due dates for the amount to be
received or paid in the Bill Allocations for screen(you can also break up the amount into multiple
reference numbers with different due dates).

To view Receivables / Payables Reports

Go to Gateway of Tally > Display > Statement of Accounts > Outstandings > Receivables (to
view due to the company).
The report displays bill-by-bill outstanding for all the parties with the pending amount alongwith the
due date.

To view individual Party wise outstanding,

Select Ledger in the Outstanding menu,

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You will get a report displaying bill-by-bill details of all outstandings for the concerned party along
with the total outstanding amount. You can also view details of cleared bills, by using the options in
the button bars.

To View Group Outstanding Reports:

Select Group in the Outstandings menu and then select the specific group or sub group

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You can also view Ageing Analysis of Outstanding, by defining various ranges of periods and view
outstanding across the specified time slabs. For e.g., you can specify 0 to 30 days, 30 to 45 days
and 45 to 75 days and so on.

Group Summaries
To view Group Summary, The group summary statement shows the closing balances of the
accounts of a selected group for a specified period up to the current date. The default view is that of
sub-groups within a group.
Go to Gateway of Tally > Display > Account Books > Group Summary
1. Select a Group (Sundry Debtors / Sundry Creditors or any other group or you may select
Primary to display summary for all the groups)
2. Press Alt+F1 for detailed view

Columnar Reports
To view Columnar Reports, Tally.ERP 9 provides columnar reports for transactions of Sales,
Purchase and Journal as well as specific Ledgers and Cash / Bank Books.
Go to Gateway of Tally > Display > Account Books

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1. Select a register (Sales/Purchase/Journal). Drill down to the List of Vouchers
2. Press F5 to view columnar reports as shown in the figure below (This is an option to choose the
ledger accounts or configure the columns to contain the required information)

Bank Reconciliation
Tally.ERP 9 provides you the facility to reconcile the transactions of your Bank Book with the Bank
Statement and instantly displays the Balance at Bank and as per the Bank Book, this facility
significantly helps in planning your payouts. The reconciliation of bank transaction using the
reconcile feature is very simple and easy to use, by simply entering the date of debit / credit of a
particular transaction in the Bank.

To view Bank Reconciliation Statement:

Go to Gateway of Tally > Display > Account Books > Cash/Bank Book
1. Select the required Bank Account and press Enter on the required month (or F2 and specify the
required period from which you want to reconcile your bank accounts)
2. Press F5: Reconcile Enter the date of clearing (date on which the transaction is being
debited / credited) from the Bank Statement.
After reconciliation, you may also toggle to other reports, by pressing the relevant buttons from the
Button Bar.

Drill down Display

Tally.ERP 9 allows you to drill down from any report to its various lower levels till the voucher level.
For e.g. you can view a Balance Sheet report and select a required group from it and drill down to
the voucher level. Any changes made by you in the voucher (i.e. if allowed by current security
levels), are reflected real time at all levels.

Date based Reporting

In Tally.ERP 9, you can generate reports by selecting a particular date or a date range. You can
also compare reports of two selected periods, months or financial years. Reports in Tally.ERP 9 are
generated based on the transaction date and not on the date of actual entry thereby ens uring
accurate representation of information. Tally.ERP 9s unique and simple approach to reconcile bank
statements is based on date of transaction and realization.

Voucher and Cheque Printing

To activate Cheque printing, Tally.ERP 9 provides you with a facility to print all types of vouchers.
You can print a voucher on save or you can print it later. It is also possible to print formal receipts
and cheques. The real benefit for a user is that you issue cheques to parties only after accounting
the payment transactions
Go to Gateway of Tally > F11: Features > F1: Accounting Features
1. Set Enable Cheque Printing to Yes
2. Enable Set/Alter Cheque Printing Configuration to Yes

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3. Enter the Company Name on the Cheque (if cheque is not preprinted with Company Name)
4. Enter the Bank Name (as created in the Ledgers)
5. Enter the Cheque Dimensions

Tally.ERP 9 allows you the flexibility to specify the payees name other than the ledger account
under which the payment is accounted. Once the voucher is saved, Tally.ERP 9 prompts you to
print the cheque.

Basic Financial Management

Tally.ERP 9 provides you the capability to generate various financial statements and Management
Information system reports, thereby facilitating better management, effective control and wellinformed decisions. Following are the some of salient features, which makes Tally.ERP 9 best for
basic financial management.
Fund Flows
Receivables Turnover (Payment performance of debtors)
Branch Accounting
Flexible Period Accounting
Budgeting and Control
Cost centers / Profit centers with multiple Cost Categories
Ratio Analysis
Scenario Management

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Fund Flows
A Fund Flow statement reflects the movement in sources and application of funds which impacts
the businesss working capital and cash position. It includes operational funds, increase and
decrease in inventories, creditors/debtors. This statement reveals the sources of the Funds and
their applications. Tally.ERP 9 tracks automatically all transactions entered and readily provides a
Funds Flow Statement.
To view Fund Flow Statement,
Go to Gateway of Tally > Display > Cash / Funds Flow > Funds Flow
1. Select any month
2. Press Enter

Payment performance of Debtors (Receivables Turnover)

Tally.ERP 9 tracks the payment performance of all debtors and generates report containing
information in respect of average time taken by the debtors to pay back their debts. The payment
performance of debtors is calculated in two ways.

Using Receivables formula: Tally.ERP 9 calculates the payment performance of your debtors
using the following formula,

Payment performance by formula: (closing balance / total sales) * nos of days

Or calculates the performance of the debtors using the actual bill cleared date. To view
Receivables turnover,
Go to Gateway of Tally > Ratio Analysis
1. Select Recv. Turnover in days (payment performance of Debtors)
2. Press Alt+F1 for detailed view

Branch Accounting
Tally.ERP 9 provides you a seamless way of handling branch accounts. Transactions between
branches or offices are accounted by debiting the receiving branches accounts and crediting the
branches providing the service/products. These accounting entries result in a nil effect on the HOs
account books when the branch accounts are consolidated. If there is a difference in the account, it
is reconciled through a process of branch reconciliation. For example, create two branch ledgers,
Branch A and Branch B. You may account the transfer of funds from Branch A to Branch B in the
books of accounts, by debiting Branch B which in turn, credits Branch A in its books. There is no
net effect on the combined books, when the accounts of the two branches are consolidated.

Budgeting and Control

Businesses need to control their expenses based on income levels and monitor variances. Budgets
in Tally.ERP 9 helps you compare the actual financial performance versus budgeted figures and
obtain variance reports. You can define multiple budgets (e.g. Optimistic Budget, Realistic Budget)

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or even create budgets for different periods. The budget values can be defined for each Group as
well as for all Ledgers.
To configure for budgets,
Go to Gateway of Tally > F11: Features > F1: Accounting Features
Set parameter Maintain Budgets and Controls to Yes
To create budgets,
Go to Gateway of Tally > Accounts Info. > Budgets > Create
1. Specify a name for the budget
2. Specify a date range for the budget
3. Set Yes to Groups / Ledgers and assign budget to selected groups/ledgers
To view budget reports,
Select any report (Balance Sheet, Profit and Loss A/c, Trial Balance)
Select Alt + C (New Column)
Specify details for period, Currency and Method of Stock Valuation. (Default or as per
requirement)
Select the created budget name for Types of Value to show
Set Show Variance to No

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Variance Analysis
Once you have created Budgets, you can view the Variance Analysis Report which provides information on the difference between the actual versus the budgeted figures. This report helps management to figure out variances and work to remedy the situation with the ability to drill down to the
voucher level the user is able to understand which particular transaction or group of transac -tion
brought about the variation.
To view a variance analysis report, you may set the option Show Variance to Yes, as explained
above or follow the steps given below:

Go to Gateway of Tally > Display > Trial Balance/Account Books (Group Summary)
1. Select the Budget Variance (Alt + B) - Type of budget

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To view the variance report in detailed mode, press Alt+F1 from the above report.

Cost centers / Profit centers with multiple Cost Categories

In Tally.ERP 9 you can allocate transactions (especially those which are revenue in nature) to
particular Cost Centers, which will help you in extracting reports for that Cost Centre (Profit Centre).
Cost Centers could generally be a Unit / Division / Department / Function / Activity etc in the
organization or even Sales Executives, to which transactions (generally transactions which are
revenue in nature) are allocated. You can also compare one cost centre with the other. Hence cost
centers will provide the management with information regarding their performance. With cost
categories enabled, parallel allocation of the same expense is possible between different cost
centers.
To view Cost Centre Break-Up,
Go to Gateway of Tally > Display > Statements of Accounts > Cost Centers > Cost Centre

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Cost Category
In many cases, you would like to allocate a transaction to more than one cost centers. Especially, if
you want to track revenue either based on location and person or brand and type of product,
Tally.ERP 9 provides you a facility called Cost Categories. This facility enables you to allocate costs
to parallel sets of cost centers i.e., the same amount can be allocated to more than one cost centre.
For example., Create two categories, one by the name of Administration and another by the
name Accounts under Primary Cost Category. Create Employees or persons under the
respective cost categories and enter a payment transaction for a ledger account for which cost
centers are applicable
1. Select the relevant Cost Category and Cost Centre during Voucher Entry
2. To view Cost Category summary,
3. Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Category
Summary

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Ratio Analysis
Ratio Analysis is an indicator on the operating performance of your business and provides
information on critical ratios in a single report. You can analyze the ratios and the business
performance using this information, viz., operating cost percentage, return on working capital and
so on, to aid critical decisions making. Not only does the internal management find the information
useful, but also external agencies like banks, financial institutions etc.
To View Ratio Analysis Report,
Go to Gateway of Tally > Ratio Analysis

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Scenario Management
1. Optional Vouchers
2. Memorandum Vouchers
3. Reversing Journals
To configure for Scenarios, Scenario Management is the management tool provided in Tally.ERP 9
with the help of which you can create multiple scenarios for the purpose of forecasting or to view
provisional reports. This can be done by selectively including certain types of vouchers , which will in
no way affect the regular books. The vouchers that are used in scenario management are

Go to Gateway of Tally > F11: Features > F1: Accounting Features

1. Set Use Reversing Journals and Optional Vouchers to Yes

To create a Scenario:
Go to Gateway of Tally > Accounts Info. > Scenarios > Create
1. Specify the name of the scenario
2. Set parameter Include Actuals to Yes/No (as required)

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3. Set parameters relating to Exclude forex gains/loss and Exclude inventory tracking to
Yes/No (as required)
4. Specify the voucher types to be included/excluded (Use Exclude option only for those
Voucher Types that have been included previously).
To view Scenarios,
1. Select any report (Balance Sheet, Profit and Loss A/c, Cost Centre and so on)
2. Select Alt + C (New Column)
3. Select the scenario
4. Set parameter Show Variance to Yes/No
Reversing Journals and Optional vouchers are both non-accounting vouchers and hence will not
affect your books of accounts in any manner. The reversing Journal is a separate Voucher Type.
This voucher is effective only when called for in reports as a part of the scenario management. In
case of Reversing Journals, you can specify the date till which it is applicable.
To enter a Reversal Journal,
Go to Gateway of Tally > Accounting Vouchers > F10: Rev Jrnl.
1. Complete the transaction and specify a date till which it is applicable
To select an optional voucher,
1. Go to Gateway of Tally > Accounting Vouchers >
2. Press Ctrl + L: Optional to mark the chosen voucher as optional
This voucher is used when you have to enter a transaction but have incomplete information or the
transaction is not yet completed. It can be regularized at any time, by going into the alteration mode
and clicking on Regular (Ctrl+L) option.

Advanced Financial Management

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Tally.ERP 9 provides you the capability to generate numerous advanced and critical Management
Information system reports and analytical tools, thereby facilitating better management, effective
control and well-informed decisions.
Following are the some of salient features, which makes Tally.ERP 9 best for advanced financial
management.
Multiple companies
Multi-Currency
Multiple Financial year
Multi-columnar reporting
Post dated Vouchers
User defined Vouchers
Sales and Purchase extracts
Cash Flows
Daily Balance & Transaction Values
Interest calculations
Percentage Based Reporting

Multiple companies
In Tally.ERP 9 you can create and maintain multiple companies. Not only, can you maintain all the
companies / branch companies in Tally.ERP 9, but you can also maintain your personal accounts
as well. Tally.ERP 9 allows to handle Companies concurrently i.e. You can load more than one
company and work on one or all of the companies loaded simultaneously, by toggling between
them, as and when required. Tally.ERP 9 also allows you to make use of group company feature
wherein you can create a group company with member companies and generate consolidated
reports for the entire group as well as individual constituent company.
To create Multiple Companies,
Go to Gateway of Tally >Create Company,
1. Specify Company Name and other related details
2. Once you create a company, create another new company (from Gateway of Tally > Alt + F3
(Company Info.) and specify the details as explained
To create Group Company,
Go to Gateway of Tally >Company Info. (Alt+ F3) >Create Group Company
1. Specify name of the Group Company and other information.
2. Select companies (already created) to be grouped together
A group company is automatically created, once you have created more than one company. Now,
you can load and work on any one of the companies.

Multi-Currency
Many Organizations have transactions in more than one currency. Such transactions have to be
recorded either in the base (home) currency or in the foreign currency. If the transactions are

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recorded in home currency, the rate at which the foreign currency is exchanged should be recorded
as well. Tally.ERP 9 allows you create and transact in multiple currencies. Tally.ERP 9 uses the
term base currency for the currency in which your account books are kept. Foreign Exchange is
used interchangeably with foreign currency. The base currency is specified while creating the
company. Tally.ERP 9 makes it easy to manage multiple currencies, automatic calculations of
exchange rates, automatic conversion of any currency used to record a transaction to the currency
of the account, etc. You can generate an invoice for your foreign customers in their currency and
also receive payments in the same or different currency. The impact of gain or loss in Forex is
reflected immediately. You can also view and print Reports and Ledger Accounts in the currency of
the transaction that has been entered or base currency.
To use Multi-currency feature,
Step 1: Enable Multi-Currency Feature Go to Gateway of Tally > F11: Features > F1:
Accounting Features Set Allow Multi Currency to Yes
Step 2: Create Multi-Currency Go to Gateway of Tally > Accounts Info. > Currencies > Create
Enter the Currency Symbol and other details
Step 3: Define Rate of Exchange Go to Gateway of Tally > Accounts Info > Currencies > Rate
of Exchange.
1. Specify the Date for Rate of Exchange and other details (Standard, Selling and Buying).
You can now enter transactions in the currency of your choice.
To view report in Multi-Currencies,
1. Select any report (i.e., Balance Sheet, Profit and Loss A/c, Trial Balance or any other report)
2. Select Alt + C (New Column)
3. Select the required currency (in which you want to view the report)
4. Specify the Rate of Exchange for the selected currency and press Enter

Multiple financial years

In Tally.ERP 9, you can have any number of financial years for one company. At the time of
creating the company, it is necessary for you to mention the beginning of the financial year. Thereafter, you can maintain accounts for any number of periods. For example, assume you have
created a Company starting from 1st of April 2008. Now, if you wish to change to the next financial
year, you have to select F2: Period (Alt+F2), from Gateway of Tally and specify the date range
as 1-4-2009 to 31-3-2010 and continue with the transactions for the next financial year. Once you
have information for multiple years in a single company you can easily toggle between different
financial periods, by selecting F2: Period (Alt+F2) option or can view reports for a period which
could span across multiple financial years, for e.g. you can view a report consisting of transactions
for the second half of the previous financial year and first half the current financial year.

Multi-columnar reporting
In Tally.ERP 9, you can compare information using multi-columnar reports. You can view / compare
information for multiple periods (year, month, quarter or any specified period), multiple currencies

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and so on for the same company or compare information for two or more companies in the same
screen without toggling between different periods / companies. This flexibility and ease in
comparison of information will help you to do meaningful analysis and bring out any exceptions
immediately.
To view a Multi-Columnar Report
1. Select any report (e.g. Balance Sheet)
2. Select (Alt + N) Auto Column
3. Select any option (company, year, month, quarter etc) and press Enter
Tally.ERP 9 now displays comparisons based on the option selected.

Post dated Vouchers

To enter a Post dated Voucher,
Tally.ERP 9 provides the capability to enter vouchers in advance for future transactions, that are
definite in nature. The vouchers marked as Post dated does not affect the books of accounts till the
date specified in the voucher. This facility is extremely useful when the user has issued or received
post-dated cheques and does not need to modify the voucher to reflect the transaction on a
particular date.
Go to Gateway of Tally >Accounting Vouchers > select F5: Payment
1. Click Ctrl + T (Post Dated)
2. Complete the transaction and save
To view Post dated vouchers,
Go to Gateway of Tally >Display > Exception Reports > Post-Dated Vouchers
Select a month or Click F2: Period to specify a date range for viewing the report for differ-ent
periods.

User defined Vouchers

Tally.ERP 9 provides 18 predefined vouchers and also allows you to create new Accounting as well
as Inventory vouchers types, as per your requirements. For example, you can further classify
payment vouchers by creating vouchers by the name Bank Payment and Cash Payment
Vouchers. You can also set the voucher numbering as per your needs, which can be either
automatic numbering or manual numbering or have no numbering at all. Further, you can also
assign Prefix and Suffix for voucher numbers and choose to restart numbering either from
beginning of the year or month and so on.
To create a new Voucher Type,
Go to Gateway of Tally > Accounts Info. > Voucher Types > Create
Enter the voucher name, type, specify the method of numbering, activate or deactivate the other
functions as per needs.

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Sales and Purchase extracts

In Tally.ERP 9, you can generate extract of the report on Sales and Purchase Registers. The
extract report provides you consolidated figures for both debit and credit balances for all groups and
ledgers. With this report you get the complete Sales / Purchase Turnover figures for any period.
To generate Extract of Purchase Register,
Go to Gateway of Tally > Display > Accounts Books > Purchase Register
1. Select any month
2. Click F6: Extract
To generate day-wise extract of Purchase, in F12: Configure of the Purchase Register screen,
set Periodicity to use to Daily.

Cash Flows
Tally.ERP 9 provides you with a cash flow statement to track the movement of cash flow i.e. cash
inflows as well as cash outflows (both cash & bank included) of your business. The report also
displays a net flow for any period.
To View Cash Flow Summary,
Go to Gateway of Tally > Display > Cash/Funds Flow > Cash Flow
1. Select a month
To generate Daily Cash Flow Statement, press F4. To view information on the average cash
inflow/out flow for any period, in F12: Configure, activate average details.

Daily Balance & Transaction Values

You can view cash/ bank books and ledgers on a day-wise basis to get information on the total
transaction value and closing balances. You can also view daily average details as well as high and
low details for the month in the same report.
To View Daily Break Up of Cash/Bank Books or Ledger,
Go to Gateway of Tally > Display > Accounts Books > Cash/Bank Books or Ledger
1. Click F6: Dly Brk-up
2. Click F12: Configure, set Show Average Details and Show High/Low Details to Yes
3. Select the ledger account (Bank/Cash or any other ledger)
4. From the Ledger Monthly Summary report, select a particular month and press Enter
5. In the Ledger Vouchers screen
Tally.ERP 9 displays a screen showing the Average as well as High and Low details for the
selected ledger. From the above report, you can also drill down to voucher level for any kind of
verification/alteration.

Interest Calculations
Tally.ERP 9 provides a powerful capability to calculate interest on outstanding balance amounts
and outstanding bills/invoices/ transactions (Receivables and payables) or on any delayed
payments so on.

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You can view the impact of interest accumulated against each ledger and also against each trans action. Although, Tally.ERP 9 provides exhaustive information on interest implications, the interest
amounts are not brought into books. You may choose to book the interest calculated as per your
requirements. Interest is calculated either on simple or compound basis and accounted into the
books, by using debit notes for interest receivables and credit notes for interest payable.
The Activate Interest Calculation field is displayed in the Ledger Creation screen only, if
Activate Interest Calculations is set to Yes in F11: Accounting Features. Set this field to Yes for
each specific ledger account for which interest is to be calculated.
Step 1: Enable Interest Calculation
In F11: Accounting Features, set parameter Activate Interest Calculation (use advanced
parameters) to Yes
Step 2: Enable Ledger for Interest Calculation Go to Gateway of Tally > Accounts Info>Ledger-> Alter.
1. Select a ledger for which interest calculation has to be activated.
2. Set Activate Interest Calculation to Yes (Set this field to Yes for each specific ledger account
for which interest is to be calculated.
3. Specify information regarding Rate of interest (%) and Style as per requirements

Tally.ERP 9 automatically calculates interest for ledgers for which interest calculations option is
activated.

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To view Interest Calculation Report,

Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations >
Receivables / Payables/Ledger
To specify or change the rate of interest at the time of entering the transaction, set Override
Parameters for each Transaction to Yes in the Ledger creation mode.

Percentage Based Reporting

In Tally.ERP 9, you can generate percentage based reporting for financial statements like Balance
Sheet, Profit & Loss, Cash Flow, Sales register etc. For example, to view percentages for all groups
in the Balance Sheet, set Show Percentages to Yes in F12: Configure.

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Basic Inventory Management

Tally.ERP 9 provides you the capability to record inventory transactions without changing the way
you do your business. It provides numerous predefined Inventory vouchers to suit your business
requirements and flexibility to create unlimited stock items, use simple to complex conversion units
and generate invoices with the required information and dimensions.
Following are the some of salient features, which makes Tally.ERP 9 best for basic inventory
management.
Flexible units of Measure
Flexible Invoicing
Unlimited Grouping & Categorization of Stock items
Voucher Classes to expedite voucher Entry
Separate Actual and Billed Quantities
Gross Profits and Consumption Report
Use Stock Item Names and / or Part Numbers

Flexible units of Measure

The instances of stock items being measured in different Units of Measure are common. In
Tally.ERP 9 you can define multiple units as per your requirements. It is also possible that an item
could be transacted in one or more units of measure, for e.g. Sugar is purchased in tons and sold in
either kgs or packets.
Tally.ERP 9 allows you to transact in all the three units of measure for the same item. This
configuration allows you to maintain stock items in both Main Units as well as Alternate Units.
Tally.ERP 9 allows creation of compound as well as alternate units for a stock item. You can
define a Compound unit as a relation between of two simple Units, for e.g. create a compound unit
namely, Ton of 100 kgs. You can view Stock Summary report in Tail Units also (here in this case,
kgs)
To create Units of Measure,
Go to Gateway of Tally > Inventory Info. > Units of Measure > Create
1. Select Unit Type
2. Specify Unit name
To activate and create Alternate Units,
Go to Gateway of Tally > Inventory Info. > Inventory Info > Stock Item > Create
1. Press F12: Configure (Inventory Info.) and activate Use ALTERNATE UNITS for Stock Items
2. Enter Alternate Units
To create Compound Units, create two simple units of measure (as mentioned earlier) and then
Go to Gateway of Tally > Inventory Info. > Units of Measure->Create.
1. Select Unit Type as Compound 2. Select First Unit and enter Conversion units

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3. Select the Second Unit
To view Reports in Alternative Units,
Go to Gateway of Tally > Stock Summary
1. Press F12: Configure, set Show Opening balance, Goods Inwards, Goods Outwards and
Closing
Balance to Yes
2. Set Show using Alternate Units to Yes

Tail Units
Go to Gateway of Tally > Stock Summary
Press F12: Configure and set Show Tail Units of Compound Units to Yes. Now, Tally.ERP 9
displays compound units of stock items in Tail units.

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Flexible Invoicing
In Tally.ERP 9, you have flexibility to invoice items or ledger accounts directly to generate sales
invoices. The details that you can include or exclude in an invoice is based on the business needs
for instance, you may want to print batch number, Manufacturing as well as expiry date, additional
description for items, show discounts on the invoice and so on.

Sales Invoice
To enter an Invoice,
Go to Gateway of Tally > Accounting Vouchers > Select Sales (F8)
1. Press F12: Configure, to activate or deactivate the features as per requirements
2. Enter all relevant information and save the voucher.
3. Press Alt + P (P: Print)

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Separate Discount Column on Invoices

Tally.ERP 9 allows the user to enter discount for each and every Stock Item and also automatically
calculates and displays the discounted value in the invoice. To activate discount column in Invoicing
Press F11: Inventory Features > Set Separate discount columns for Invoices to Yes

Purchase Invoices
Tally.ERP 9 provides the option to enter purchase transactions in invoice format and hence entering
vendor invoices is made easy. When you enter purchase detail in the invoice format, the stock
items selected are automatically updated in the stock summary. You can apportion additional
expenses, like taxes, freight etc., to stock items which affects their valuations.
To enable Purchase Invoices in Invoice Format,
Press F11: Inventory Features > Enable Allow Invoicing and Enter Purchases in Invoice
Format to Yes
To enter Purchase Invoices in Invoice Format,
Go to Gateway of Tally > Accounting Vouchers > Select Purchase (F9)
1. Select Partys A/c Name
2. Select Stock Items
3. Specify Qty and Rate, the value is automatically calculated
4. Select taxes, freight & other expenses (if any).

Unlimited Grouping & Categorization of Stock items

Tally.ERP 9 allows unlimited grouping of stock Items to Stock Groups or subgroups at any point of
time. It also allows categorizing stock items based on their specific nature or type or brand in order
to generate customized inventory reports.

Stock Group
In Tally.ERP 9, you can classify all common stock items to a single group, for instance Raw
materials, Components Consumables, Desktop computers, Scanners etc. Grouping of stock items
facilitates effective and substantive reporting on stock items. In Tally.ERP 9, you can create
unlimited levels of groups for in-depth analysis.
To create Stock Groups
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create
Enter Name for the Group (Specify the parent group of the current group).
Enter other details and save screen
To view Stock Group Summary Reports,
Go to Gateway of Tally > Display > Inventory Books > Group Summary Select any group or
select Primary to display all Stock Groups

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Stock Category
In many cases, you may want to classify stock items which are similar in nature but are grouped
under different Stock Groups. Tally.ERP 9 provides you a feature namely, Stock Categories, which
allows parallel classification of stock items to separate categories besides grouping. For example,
you may group Television sets of different sizes based on their size viz., TVs of 14 inches, 21
inches, 29 inches and so on. But however, if you require reports on, which brand sells more. In
such cases, you require parallel classification of stock items to stock categories viz., Sony,
Panasonic, LG, Samsung, Philips, etc. In Tally.ERP 9 you can create stock items and group under
the respective groups and parallel classify them under the respective Stock Categories. You could
however, interchange the stock category or stock group based on your convenience and reporting
requirements.
To enable Stock categories,
Go to Gateway of Tally > F11: Inventory Features
1. Set Maintain Stock Categories to Yes
To create Stock Categories,
Go to Gateway of Tally > Inventory Info. > Stock Categories > Create
1. Specify the Name for the Category
2. Select Primary or the parent Stock Category from the list
To view Stock Category Report,

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Go to Gateway of Tally > Display > Statements of Inventory > Categories
1. Select the required Stock Category or select Primary to display all Stock Categories

Voucher Classes for Sales Invoice

Voucher classes for invoices can be used to significantly automate ledger entries where tax
calculations, additional charges, rounding off etc., are involved. You can also specify percentages
for additional accounting allocations like taxes, freight and other charges. Based on the values /
percentages entered, the total amount is automatically calculated and prefilled in the respective
fields
To create Voucher Class,
Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter
1. Select Sales Voucher Type Tab down to Name of class field and specify the name
2. Select the required groups under Exclude these Groups and Include these Groups
3. Specify the allocations in % between Sales and Tax Ledgers in Default Accounting Allocations for each item in Invoice.
4. Select additional Ledger accounts which are involved in the voucher entry viz., Tax, Freight,
Discount etc., and specify the type of calculation and other details in Additional Accounting
Entries

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To enter transaction using Voucher Class,
Go to Gateway of Tally > Accounting Vouchers > F8 (Sales)
1. Select the required Voucher
2. Select the required Voucher Class from Voucher Class List
3. Enter the Party and Stock Details
4. The Accounting allocations are automatically done, as defined in Voucher class
5. Complete and save the transaction

Separate Actual and Billed Quantities

There are situations when you have to invoice the customer for a particular quantity but actually
supply a different quantity. Tally.ERP 9 allows you to handle such situations with the hlep of Use
different Actual and Billed Qty option. Using this option, you can specify different acutally and
billed quantities in the same invoice. The Actual quantity updates the stock balances and Billed
quantities affect the books of accounts. This feature is widely used to record supply of free items.
further, this option will be useful when you have to supply free item(s) for sale of a fixed number of
goods or if you have to supply free samples to your customer.
To enable Actual and Billed Quantity in Invoices,
Press F11: Inventory Features, set Use different Actual and Billed Qty to Yes
To enter Actual and Billed Quantity in Invoices,
Go to Gateway of Tally > Accounting Vouchers > F8 (Sales in Invoice mode)
1. Enter quantities under Actual and Billed Qty columns
2. Specify the Rate & other details
3. Save transaction.
The Actual Qty affects the stock balances while the Billed Qty affects only the Books of Accounts

Gross Profits and Consumption Report

Consumption basically means, the quantity / value of materials used (consumed) in the process of
manufacturing, selling or written off. Tally.ERP 9 automatically tracks the movement of materials
consumed. You can view the consumption report along with gross profit for every item.
To view Consumption Report,
Go to Gateway of Tally > Stock Summary > F7 (Show Profits)
1. Press Alt+F1 for detailed mode

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Use Stock Item Names and / or Part Numbers

Stock items can be created in Tally.ERP 9 by specifying their actual names as well as by their Part
Numbers. This makes it convenient for many users dealing in certain industries (like Computer/
Automobile Industries) where items are generally identified by their Part Nos. You can also view
reports for all stock items with their actual names or by part numbers or both. To create Part
Number for a Stock Item
Go to Gateway of Tally > Inventory Info. > Stock item > Alter (Create, if the Item is not existing)
1. Select the required Stock item
2. Press F12: Configure and set Use PART NUMBERS for Stock Items to Yes
3. A new field Part No is displayed in Stock Item Creation/Alteration screen
Specify the part numbers as well as actual names for the stock items created/altered.

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To view Stock reports with Part Number,

Go to Gateway of Tally > Stock Summary (or any other Inventory reports)
1. Press F12: Configure, and set Appearance of Stock Item Names as Part No. Only
2. Press Enter to save.
Now the stock items are displayed as Part Nos instead of their names.

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Advanced Inventory Management

Tally.ERP 9 provides you the capability to record inventory transactions without changing the way
you do your business. It provides predefined Inventory vouchers to suit your business requirements
besides allowing you to create user defined voucher types and flexibility to track your inventory at
any point/stage/process and numerous other features.
Following are the some of salient features, which makes Tally.ERP 9 best for advanced inventory
management.
Stock Query
Multiple Warehouses / Locations:
Sub-Godowns
Stock transfers to Godowns
Multiple Stock Valuation
Batch-wise / Lot-wise & Expiry Date Handling
Sales and Purchase Order Processing
Tracking Inventory
Rejection In and Rejection Out
Additional Costs Incurred on Purchase
Unlimited Stock Item Classification
Bill of Materials

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Tracking Additional Cost of Manufacturing
Job Costing
Stock Ageing Analysis
Batch Related Stock Ageing
Price List with Multi Price levels
Reorder Levels
Movement Analysis (Partywise/ Itemwise/ Stock Groupwise)
Profitability Analysis (Stock Groupwise / Stock Itemwise / Invoicewise / Locationwise)

Stock Query
Stock query offers an option for the user to get a good idea of what is the stock position of a particular item as well as items that belong to the same category or group. The stock query report
displays not only the item but also items within the same category or group. It displays the Stock
Item details such as closing stock quantities and value and also in which Godown it is available,
standard selling price, Last purchase and sale quantity and prices, batch details. The user can
configure the screen to show remarks also.

In F12: Configure screen of the Stock Item, activate all the related parameters to Yes as shown

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Enter the required details in the stock item alteration screen as shown here.

To view Stock Query Report,

Go to Gateway of Tally > Display > Statements of Inventory > Stock Query
1. Select Item from List of Items, the Stock Query report will appear
2. Select F4 (Item) to change to another item or use arrow keys to move to the category pane to
select another item displayed
The Stock Query report provides you all details of closing balances & value, cost, standard and
last sale prices, purchase costs and dates. In addition, activate these parameters in F12:
Configure to see details like Remarks, Part No with alias;
1. Show Related items of same Group to Yes
2. Show all Aliases of the item to Yes
3. Show Remarks of the item to Yes

Multiple Warehouses / Locations

A Warehouse/Godown is a place where stocks/materials are stored. It could be either locations or
even Storage racks. Your company could be maintaining multiple warehouses/godowns and hence
would require stock statements for the individual warehouses. Tally.ERP 9 offers you the capability
of maintaining multiple Godowns/Locations (Warehouses). It allows you to create multiple Godowns
(warehouses) and at the time of accounting an inventory transaction (sales, purchase, stock Journal
etc), you can specify Godowns for stock items to be stored or des-patched.
For Example. if you enter a purchase transaction, you will have to specify the Godown where the
item will be stored and in the similar manner while entering a sales transaction, you will have to
specify the godown from where the goods are issued. Tally.ERP 9 also allows you to transfer

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materials from one godown to another. You can view stock reports for a godown or compare a
godown with another and also get a consolidated stock report.
You can also create godowns to keep track of items issued for job works / Sub-contracts and
record the items issued to and received from job works. Each Job Work / Sub-Contract is treated as
a godown. You can also track the third party stocks viz., details of stocks sent, cons umed and
balance lying with the Job Work Godown.
To Enable Multiple Godowns,
1. Press F11: Inventory Features, set Maintain Multiple Godowns to Yes
To create a Godown, Go to Gateway of Tally > Inventory Info. > Godowns > Create
1. Enter godown Name and other details
2. Save screen
To view Godown Summary Report,
Go to Gateway of Tally > Display > Statements of Inventory > Godowns
1. Select any Godown or Primary from the List of Godowns
2. Tally.ERP 9 displays Stock Summary for that particular Godown

Tally.ERP 9 allows you to compare multiple Godowns. To compare Godowns,

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Go to Gateway of Tally > Display > Statements of Inventory > Godowns
1. Select any Godown from the List of Godowns
2. Press New Column (Alt + C)
3. Select another godown from List of Godowns, Tally.ERP 9 now displays Godowns details in a
columnar format
4. Or you may also press Alt+N and select Godowns from Column Details drop down
5. Set Total Column to Yes
Tally.ERP 9 displays all Godowns in columnar format and also displays total column.

Sub-Godowns
Using Tally.ERP 9, you can create Sub-Godowns (multiple levels of Godowns). While creating subGodowns you have to specify name and the parent Godown under which it has to be created.
Tally.ERP 9 also allows you to create Virtual Godowns. Virtual Godowns do not allow storage of
materials. They are useful when a city has more than one warehouse Godowns, e.g. in a city where
you have 2 warehouses you can have Godown such as Jayanagar or Indiranagar and Bangalore
being the city is setup as Godown where Allow Storage of Material is set to No. In this case,
Bangalore is a virtual godown, logically as it does not exist, but still you can generate a stock
statement for Bangalore godown.

Stock transfers to Godowns

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Tally.ERP 9 allows you to transfer materials from one Godown to another. The transfer of materials
is done using Stock Journals. Tally.ERP 9 also provides you the facility to create voucher class,
which help in simplifying the transfer of materials between godowns.
To transfer materials (Stock Transfer),
Go to Gateway of Tally > Inventory Vouchers > Alt+F7 (Stock Journal)
1. Select Stock Item in Source column and the Godown particulars 2. Select Stock Item and
Godown particulars in Destination column

To transfer materials using Voucher Classes,

Step 1: Create Voucher Class Go to Gateway of Tally > Accounts Info./Inventory Info. >
Voucher Types > Alter
1. Select Stock Journal, tab down to Name of Class field and specify Class name (e.g. Godown
Transfer)
2. Set Use Class for Inter-Godown Transfers to Yes
Step 2: Create Stock Transfer Journal Voucher
Go to Gateway of Tally > Inventory Vouchers > Alt+F7 (Stock Journal)
1. Select Godown Transfer Class from Voucher Class List
2. Select Destination Godown details, stock items, Source Godown

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Multiple Stock Valuations

In Tally.ERP 9, you can evaluate the value of inventories using multiple Stock Valuation methods
viz., Average Cost, Average price, Last Purchase cost, Last Sales price, FIFO etc.
Tally.ERP 9 offers you the flexibility to have different stock valuation methods for every item or the
entire stock of the company which is valued based on the specific type of costing method, chosen
at the time of reporting. The user is allowed to view different methods of stock valuations in multiple
columns.

To set Valuation Method for a stock item,

Go to Gateway of Tally > Inventory Info. > Stock Items > Alter
Select the Stock Item
2. Press F12: Configure and set Allow ADVANCED entries in Masters to Yes
3. In Stock Item Alteration, specify the required Costing Method
To view Stock Summary in different Valuation Methods,
Go to Gateway of Tally > Stock Summary
1. Select Auto Column (Alt+N) and select the required Stock valuation methods in Auto
repeat columns.

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The Stock Summary report will now display value of inventories in different Stock Valuation
Methods,

Batch-wise / Lot-wise & Expiry Date Handling

Tally.ERP 9 allows you to specify the Batch/Lot details for stock items in order to identify and track
the required inventory, as and when required for any kind of reference/verification/sale/query and so
on. it also allows you to specify the expiry dates and manufacturing dates for stock items. This
feature is extremely useful in Pharmaceutical, Chemical, Food and other industries which deal in
perishable / life saving items. Additionally, you can ensure that expiry date items are not available
for invoicing.

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Step 1: Enable Batchwise Details
To enable Batchwise details for Stock Items, Go to Gateway of Tally > F11: Inventory Features
1. Set Maintain Batch -wise details to Yes
2. Enable Set Expiry Dates for Batches to Yes (if required)
Step 2: Create Batchwise Details
To specify Batchwise details for Stock Items, Go to Gateway of Tally > Inventory Info. > Stock
Item > Create/Alter
1. Specify Stock Item Name and other details
2. Set Maintain in Batches to Yes
3. Set Track Date of Mfg to Yes
4. Set Use expiry dates to Yes
5. Enter Opening balance with Batch & Rate details
Step 3: Create Vouchers using Batchwise
To create voucher using Batchwise details, for example, while entering Purchase entry,
1. Select the Stock Item
2. Specify the Batch No., Mfg Date and Expiry Date details
Step 4: Batchwise Reports
To view Stock Reports with Batchwise details,
Go to Gateway of Tally > Stock Summary
1. Press F12: Configure, set Expand all levels in Detailed Format to Yes and save the screen
2. Press Alt + F1 for detailed mode, Tally.ERP 9 displays all stock items along with their batch
details
Step 5: Expiry Reports
To view Stock Reports with Expiry dates,
Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis
1. Select stock group and press Enter
2. The Stock Ageing Analysis report displays stocks with expiry date particulars

Sales and Purchase Order Processing

Tally.ERP 9 facilitates Order processing right from placing the order for supply of materials and
receiving an order from the customers. It provides all the required vouchers, features and options to
process Purchase Orders as well as Sales Orders. Using the Order Processing functionality of
Tally.ERP 9, you can also generate reports for outstanding purchase and sales orders. You may
also e-mail the PO to suppliers from within Tally.ERP 9 using e-mail option.
Step 1: Enable Order Processing
To enable Order Processing, Go to Gateway of Tally > F11: Inventory Features
1. Set Allow Purchase Order Processing to Yes
2. Set Allow Sales Order Processing to Yes

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Step 2: Create Purchase Order
Go to Gateway of Tally > Inventory Vouchers > Alt+F4 (Purc Order)
1. Select Partys Name from List of Ledger Accounts
2. Enter Order No.
3. Select Stock Item, Quantity, Rate details
Similarly, you can also create Sales Orders for orders received from Customers, by pressing
(Alt+F5) voucher entry screen.
Step 3: View Order Summary Report
To view Order Summary Reports,
Go to Gateway of Tally > Display > Statements of Inventory > Purchase Order Summary /
Sales Order Summary
1. Press Enter to view Purchase Order / Sales Order details
2. Click F7 (Due only) in overdue order details
3. Click F4 to view orders of other items

Tracking Inventory
Generally, Invoices are sent along with the goods sold. However, there are certain instances, where
the goods are dispatched first and then the invoices are sent later or vice versa. In such cases, the
stocks balances are not updated simultaneously with the books of accounts. Tally.ERP 9 provides
facility to use tracking numbers, wherein you can enter Receipt Note and Delivery Notes with
tracking numbers and track the receipt and dispatch of goods. Although these vouchers do not
affect your accounts they are displayed in the Profit and Loss A/c under the heading Purchase
Bills to Come under Purchase Accounts and Sales Bills to Make under Sales Accounts.
Step 1: Enable Tracking Numbers
To enable Tracking Numbers, Go to Gateway of Tally > F11: Inventory Features
1. Set Use Tracking Numbers (Delivery/Receipt Notes) to Yes
Step 2: Enter Tracking Numbers
To record Receipt Note with Tracking Numbers, Go to Gateway of Tally > Inventory Info. >
Alt+F9 (Receipt Note)
1. Select Partys Name from List of Ledger Accounts
2. Select Stock Items & specify Qty
3. Specify Tracking Number(s)
4. Complete voucher by entering all other details
In case of Delivery Note, press Alt+F8 and follow the same steps (as explained above) and recall
tracking nos. while rising invoices
Step 3: View Bills Pending Report
To view Sales Bills Pending Report,
Go to Gateway of Tally > Display > Statements of Inventory > Sales Bills Pending

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The report shows information on Goods dispatched but sales invoices not generated.

Rejection In and Rejection Out

Materials that you purchase or sell might be returned due to damages or other reasons. Tally.ERP
9 handles rejections from the customers or to the supplier with the help of Rejections In (Sales
returns) and Rejections Out (Purchase returns) Vouchers. These rejection entries update only the
inventory books. But in some cases, you would like to scrap those materials which are Rejected In
(i.e. Sales returns), in such cases you can activate Treat all Rejection Inwards as Scrap to Yes,
during stock item creation / Alteration screen.
To Enable Rejection Inward/Outward Notes,
Go to Gateway of Tally > F11: Inventory Features,
1. Set Use Rejection Inward/Outward Notes to Yes
To create Rejection Inwards Note,
Go to Gateway of Tally > Inventory Vouchers > Ctrl+F6 (Rej In).

1. Select the required Ledger Account

2. Select Party Ledger
3. Select the Stock Item (rejected / returned)
4. Select the respective Tracking Number
5. Enter the Qty and other details

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Similarly, you can enter Rejection Outwards by selecting Alt+F6 (Rej Out) in Inventory Voucher
entry screen and follow the same steps as explained above.

Additional Costs Incurred on Purchase

When you make a purchase, you may incur additional expenses like freight, handling charges,
taxes and so on. This cost is also referred to as Landed Cost, Tally.ERP 9 allows you to add these
costs to the value of the product during voucher entry or later. These expenses are sometimes
included in the Supplier Invoice or directly borne by the buyer, in such cases you have to book
these expenses in order to ascertain the landed cost of the product and ultimately which will help in
determining the Item pricing and your margin. In Tally.ERP 9, you may book additional cost incurred
on purchases in two ways :
Method 1:
Step 1: Enable Additional Cost of Purchase
To enter Additional Cost of Purchase,
Go to Gateway of Tally > Accounting Vouchers > F9 (Purchase - As Voucher)
1. Select an item
2. Specify Qty & Rate details and press Enter
Step 2: Book Additional Cost of Purchase
To enable Additional Cost of Purchase,
Go to Gateway of Tally > F11: Inventory Features
1. Set Track additional cost of purchase to Yes
Tally.ERP 9 prompts for Additional Cost Details for screen for the Stock Items

2. Select Expenses ledgers like Freight, Packing and enter their rates
3. Save the voucher

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Method 2:
At times, it may happen that you have completed the purchases entry and want to book additional
costs later. In such cases, follow the steps given below: Go to Gateway of Tally > Accounts Info.
> Ledgers > Create
1. In the Ledger Master Creation screen, set Inventory values are affected to Yes
To book Additional Cost of Purchase
Go to Gateway of Tally > Accounting Vouchers > F5 (Payment)
1. Select additional costs Ledger Account (e.g. Customs Duty, Taxes, Freight etc)
2. Select the required Stock Item
3. Enter value for Amount in Item Allocations screen
4. Select other stock items and follow the same process
The above process automatically updates the value of the stock item.
To view Report,
If you wish to view the additional cost details for stock items for purchases Go to Gateway of Tally
> Display > Inventory Books > Movement Analysis > Stock Item Analysis
1. Select Stock Item from List of Items, Tally.ERP 9 displays details of item purchased
2. Press Enter to drill down to get information on Qty, Basic Rate & Value, Additional cost, total
value and effective rate etc.

Unlimited Stock Item Classification

Tally.ERP 9 provides the flexibility to maintain unlimited stock item classification for your
inventories. Depending upon your nature of business / needs. If you are a manufacturing concern,
you may primarily require three broad classifications of the Stocks Groups i.e., Raw Materials,
Work-in-Progress & Finished Goods. Depending upon the nature of business, you may create any
number stock groups and classify stock items under them at point of time. When Integrate
Accounts with Inventory is enabled, the closing values of inventories under each of the stock
groups are automatically reported in the financial statements. However, If you have not opted to
Integrate Accounts with Inventory, you can created Ledgers as Raw Materials, Work-in-Progress
and Finished Goods Stock-in-Hand group and generate balance sheet as of a particular date.

Bill of Materials
In many segments of the industries, especially in Manufacturing/Assembling organizations, there
are number of components/inputs/spares that go into the manufacturing/assembling of finished
Goods. Each process of manufacturing of raw materials to finished goods / intermediate goods
comprises of a List of components known as Bill of Materials (BoM) containing the list of
components involved in the manufacturing/assembling of the finished goods. In Tally.ERP 9, you
can create a bill of materials and specify the list of items ( along with the Godown and Quantity
details) that are required for manufacturing the finished / intermediate product. Once, the Bill of
materials is created, you can use Manufacturing Journal and specify the quantity of finished goods
that are to be manufactured. Tally.ERP 9 immediately selects all items required to manufacture the
finished product and automatically adjusts (decreases) the stocks. You can also enter additional
costs like wages, power, water charges etc, to the cost of the items used in manufacturing.

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To create Manufacturing Journal Voucher, Go to Gateway of Tally > Inventory Vouchers >
Alt+F7 (Stk Jrnl)
1. Select Mfg Journal
2. Select the name of the finished product to be manufactured / assembled
3. Select the Godown / Stores and specify the Qty
Tally.ERP 9 automatically picks up all stock items to manufacture the finished product with their
costs. You can also add additional manufacturing costs like labour, power, fuel, water charges etc

Tally.ERP 9 displays the total additional cost, effective cost and the effective rate for each finished
product.

Tracking Additional Cost of Manufacturing

To track Additional Costs of manufacturing, create a Manufacturing Journal with BoM in the
manner, as explained in the previous section. When you manufacture a product, you have to
consider certain other costs like water charges, wages and electricity in addition to the cost of the
component, which are added to the product cost during the process of manufacturing. In Tally.ERP
9 , you can record additional costs in % or as notional value to the product cost, while entering a
manufacturing Journal.

Job Costing
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Tally.ERP 9 facilitates tracking of cost and revenue information down to the smallest detail for any
Job Work/contract undertaken or outsourced to third parties. In order to ascertain the actual costs
incurred for each job, each job is assigned a job number or Job name and then Job costing systems
accumulate costs separately for each product or service based on the jobs/tasks under-taken or
materials consumed, for each such product or service. In Tally.ERP 9 each Job work / sub-contract
is created as Godown and Cost Centers are deployed to accumulate Cost / revenue for each job.
You can use Stock Journals to transfer materials from your companys godown(s) to job workers /
sub-contractors location and track the consumption of goods sent for processing. This helps to keep
track of the materials issued and consumed at the job work units. Additionally, you can also account
for costs incurred using purchase / payments / journal vouchers.
To Enable Job Costing in Tally.ERP 9,
Go to Gateway of Tally > F11: Accounting Features
1. Set Use Cost Centres for Job Costing to Yes
2. Set More than ONE Payroll / Cost Category to Yes (if required)
To use Job Costing Feature in Tally.ERP 9, follow the steps given below :
Step 1: Create Cost Centers for Job Costing
Go to Gateway of Tally > Accounts Info > Cost Centers > Create
1. Enter the name of the Cost Centre in the Name field
2. In the Under field, select Primary from the List of Options
3. Set the option Use for Job Costing to Yes.(This cost centre will then be available in the drop
down for the Job Work Analysis report)
4. Save the screen
Step 2: Create Godowns for Job Costing
Go to Gateway of Tally > Inventory Info. > Godowns > Create
1. In the Godown Creation screen,
2. Allow Storage of Materials is automatically set to Yes
3. Select the required Cost Centre from the list of Cost Centers, in the Set Job/Project Name for
Job costing field
4. Save to accept
Step 3: Create Ledgers for Job Costing
Go to Gateway of Tally > Inventory Info. > Ledgers > Create
1. Enter the name of the Ledger
2. Specify the Group Name in the Under field
3. Set Cost Centres are applicable to Yes
Step 4: Create Stock Journal Voucher Class for transfer and consumption
Go to Gateway of Tally > Accounts / Inventory Info. > Voucher Types > Alter
1. Tab down to Name of Class field and specify Transfer Class and press Enter
2. Set Use Class for Inter-Godown Transfers to Yes, you will prompted back to the Name of
Class field in Voucher Type creation/alteration screen
3. Type Consumption Class under Name of Class and press Enter
4. Set Use Class for Job Costing Consumption to Yes

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5. Save screen
Step 5: To create Transfer Journal Voucher
Go to Gateway of Tally > Inventory Vouchers > (Alt +F7) Stk Jrnl
1. Select Transfer Class as the Voucher Class
2. Select Stock Items to be sent from companys godown in Source column (left side) with Qty
details
3. Specify same items and mention Job workers Godown details in Destination column
Step 6: To create Consumption Journal Voucher
Go to Gateway of Tally > Inventory Vouchers > (Alt +F7) Stk Jrnl
1. Select Consumption Class as the Voucher Class
2. Select Stock Items consumed at the Job work Godown in the Source column with Quantity
details
Step 7: To view Godown Summary
Go to Gateway of Tally > Display > Statements of Inventory > Godowns
1. Select the Godown/Job Worker
You can verify the stocks lying with the job worker through the Godown Summary report.
Step 8: To Job Work Analysis Report
Go to Gateway of Tally > Display > Statements of Accounts > Job Work Analysis
1. Select the required Job and press Enter
You can also insert (Alt+C) columns to display costing report for other Jobs and compare
margins/costing across jobs.

Price List with Multi Price levels

Tally.ERP 9 allows you to predefine multiple levels of price lists. For e.g. you can define price lists
for Distributors, Dealers and Retailers. While defining the price lists Tally.ERP 9 displays the cost
price as well as last price (historical data) for that particular stock item. This simplifies and expedites
invoicing and also eliminates the possibilities of errors at the time of Invoice entry. You can
predefine price levels for parties at the time of their ledger accounts creation. When you select a
particular party during entry, you have to select only the stock items and enter the qty. The related
price is prefilled automatically based on the levels defined.
To define Price levels,
Go to Gateway of Tally > F11: Inventory Features
1. Set Use Multiple Price Levels to Yes
To define Price Lists,
Go to Gateway of Tally > Inventory Info. > Price list >
1. Select any Group or All Items
2. Specify rates for all items/group (You can specify different rates for different quantities of the
same item discount %)

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Reorder Levels
It is essential for your company to maintain sufficient inventory levels to cater to the growing needs
of your customers and smoothly run your business. In order to have adequate stocks, you have to
maintain information in respect of consumption pattern and reorder levels. Tally.ERP 9 provides
you facility to maintain reorder level details for each stock item. You can define reorder levels as
well as minimum order quantity for stock items based on the consumption pattern and as per
requirements for a specific period (i.e. Days, Months, Weeks, and Years). Tally.ERP 9 also
provides you information on stock items whose balances have gone below specified reorder levels.
To Enable Reorder Levels,
Go to Gateway of Tally > F11: Inventory Features > Set Allow Purchase Order Processing to
Yes
To specify Reorder Levels,
Go to Gateway of Tally > Inventory Info. > Reorder Levels > All items/Groups
1. Specify Reorder Quantity, Minimum Order Quantity levels, Period and Criteria details.
2. Save screen

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To view Reorder Status Report,

Go to Gateway of Tally > Display > Statements of Inventory > Reorder Status
1. Select a group or Primary
2. Press Enter
Tally.ERP 9 displays complete details with closing balances, Purchase Orders Pending, Sales
Order due, Reorder level, Shortfall, Min Reorder Qty and Order to be Placed etc. From this report
you can drill down to details (For e.g., example, you can drill down to Specify Reorder Level screen
from the Reorder level column). To view those items below reorder levels, press (Alt + A) Reorder
Only.

Movement Analysis (Party wise/ Item wise/ Stock Group wise)

Tally.ERP 9 offers you yet another important inventory management tool called Movement Analysis.
With this report you can analyse the movement pattern of materials either party wise, group wise or
item wise. Using this report you can analyse the price at which each supplier has supplied a
particular item. Movement Analysis of a stock group shows the total inward and outward movement
of stock items with their effective rates and values for that particular group. The Movement Analysis
for a party shows the inward and outward movements of all stocks with effective rate and value.
Select an item to drill down further and Tally.ERP 9 displays transaction wise details along with a
separate column for additional cost.

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Go to Gateway of Tally > Display > Inventory Books > Movement analysis > Stock Item
Analysis
Select the required Stock Item and press Enter
Movement analysis of stock items shows party wise inward and outward movements of stock items
with basic rate and effective rate. Select any party to drill down further for more analysis

Profitability Analysis (Stock Group wise / Stock Item wise / Invoice wise /
Location wise)
Using Tally.ERP 9, you can automatically calculate the gross profit for an item based on its sale
price and consumption cost. Gross profit is the difference the between sale price and the
consumption value. The consumption value is calculated based on the purchase price. You can
calculate gross profits for each invoice, stock item, stock group as well as items and location wise.
To view Stock Group wise,
Go to Gateway of Tally > Display > Inventory Books > Group Summary
1. Select Primary or any Stock Group
2. Press F7 : Show profits
3. Tally.ERP 9 displays sales value, consumption cost and gross profit along with percentages (%).
To view Stock item wise, Go to Gateway of Tally > Display > Inventory Books > Stock item
1. Select the Stock Item
2. Press F7 (Show Profit)
3. Press Enter to drill down further to get transaction wise profitability (Only for outward entries).
To view Invoice Wise,
Go to Gateway of Tally > Display > Account Books > Sales Register
1. Select a month to display sales entries
2. Press F7(Show Profit)
3. Tally.ERP 9 displays Gross Profits (Amt & %) for sales entries
To view Location wise, Go to Gateway of Tally > Display > Statements of Inventory >
Godowns (Warehouses)
1. Select a godown.
2. Press F7 (Show Profit)

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The Technology Advantage of Tally.ERP 9

High Performance Data Engine:
Tally.ERP 9 uses a recursive object oriented, flexi-field, flexi-length embedded database engine
giving a compact and fast performance. The in-built database engine also ensures that you do not
need to install or understand any third party database like most other applications. Tally.ERP 9 is
completely maintenance free without any administration required from your side. The performance
is reflected with most of the reports coming up instantly. Overall you get a smooth experience with a
lower cost of ownership.

Data Reliability and automatic recovery

Tally.ERP 9 provides a high level of reliability of data with several technologies built into it. Your
data does not get corrupted even if there is a sudden machine shutdown or network breakdown or
power cut. This is ensured using the concept of transaction atomicity?? Which is supported by the
object oriented storage. Tally.ERP 9 uses data integrity checks intensively to detect any change to
your data by external means. Any corruption happening in this way will be instantly detected as the
program operates the data with a timely warning to you. Besides providing a warning, Tally.ERP 9
provides you a unique capability to recover from most corruptions by allowing you to simply rewrite
the data. The corrupted data is then discarded and you can continue with normal operations, at the
most re-entering the corrupted transactions or masters only.

Internet & Data exchange HTTP-XML based data interchange

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Tally.ERP 9 uses a recursive object oriented data structure which can naturally and easily be
expressed as XML. Tally.ERP 9 can export your data in XML format and can also import data
coming in XML format. This is a fundamental capability of the program and can be easily used to
extract data for third party applications or to pump in data from third party applications as long as it
is compliant with the schema of a voucher or master. The process can be automated since
Tally.ERP 9 can run as an HTTP (Hyper text transfer protocol) server and can process requests for
import or export in HTTP-XML to this server from other applications. Even third party web
applications written in ASP, PHP, Java etc. can talk to
your Tally.ERP 9 running as an HTTP server and provide real-time information or remote data
input. The third party application can send a request to Tally.ERP 9 to get any report in XML or
even in HTML formats. Even new reports can be added by defining them in TDL (Tally Definition
Language). In the same way, a master or a voucher can be created in XML and sent to Tally.ERP 9
server as an HTTP-XML request and will be processed and stored by Tally.ERP 9. This capability
has been used to provide the synchronization capability (explained in this document later) which
allows data to be replicated, exchange between multiple Tally.ERP 9 instances running at same or
different locations just by configuring the same. All Tally.ERP 9 reports can be readily exported in
XML format.

ODBC - Open Database Connectivity ODBC data access

Tally.ERP 9 provides an ODBC (Open database connectivity) driver natively which allows other
applications like MS-Excel (which can use an ODBC data source) to directly pick up data from
Tally.ERP 9 running as an ODBC server. This data is again real-time data and can be refreshed by
such applications any time as long as Tally.ERP 9 is running. You can pick and choose the
available information and design your own reports in tools like Excel. The type of data available on
ODBC from Tally.ERP 9 can be extended using TDL (Tally definition Language). ODBC compliance
allows other programs to use data from Tally.ERP 9 directly.

Procedure:
1. Load Company > Press Alt+F2 (Change Period)
2. Minimize Tally.ERP 9
3. Open a new Excel worksheet > Data > Import External Data > Data Import
4. Select Tally ODBC_9000 as Data Source
5. Click Open

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Tally.ERP 9 connects to data source and displays Tally.ERP 9 Wizard query screen -> select the
columns you would want to include in the query.

Select the required columns (data). MS Excel displays the data selected.

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In a similar manner you can select other data for import into Excel and format your reports as per
requirements.

Automatic data replication/exchange with synchronization

Ability to synchronize data across multiple offices Synchronizations process in Tally.ERP 9 helps
you to transfer data between two or more locations. For instance, Synchronizations can be done
both ways for the Head office of a company and its Branch office situated in two different locations

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Security Management
Data Security
Tally.ERP 9 use of data integrity checks ensures that no external change to your data can affect it.
It uses a binary encoding format of storage to prevent devious grouping of information. It also offers
access to your database thru an ODBC layer, which is fully activated.

User-defined Security Levels

Tally.ERP 9 offers you high levels of security. You can define multiple levels of security as per
requirements and authorize users with individual passwords and rights to access specific
functionality only. User with Administrator level password will have full access to all features and will
set access controls for other users.

To activate Administrator level Password:

1. The Administrator level password is activated during company creation
2. Company Info screen > Create
3. Type Company Name, Address and other related details
4. Set the feature Use Security Control to Yes
5. Specify Administrator Name, password and repeat
6. Save screen

If the company is already created:

1. Load Company > Alt+F3 (Cmp Info) > Alter
2. Set the feature Use Security Control to Yes
3. Specify Administrator Name, password and repeat
4. Save screen

To create multiple levels of passwords:

Create the Administrator level password as explained earlier.
1. Select Company > Type Administrator Name and password.
2. Click Alt+F3 (Cmp Info) > Security Control > Types of security
3. Specify Name of Security Level
4. At the field Basic Facilities of, select Owner
5. Specify value for Days allowed for Back Dated vouchers. (The no. of days the user is allowed
to go back to enter vouchers from the current date).
6. Specify value for Cut-off date for Back Dated vouchers (The last day till which the user can go
back to enter transactions)
7. Go to column Disallow the following Facilities ->Specify the Type of access (i.e. Full Access,
Alter, Create, Create/Alter, Display, Display/Print etc)
8. Go to column allow the following Facilities and specify the details
9. Save screen
Tally.ERP 9 allows you to create any number of levels.

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1. Select Users and Passwords under the Security Control
2. Specify Name of the user, password and level
3. Save screen.

Tally Audit
Tally audit feature provides you with Administrator rights; a capability for you to check the accuracy
and correctness of the entries made by authorized users. It allows you to alter the entries if
required. Once you audit the entries, Tally.ERP 9 displays for you all altered entries with the users
name who altered the entry, the date and time of alteration. The audit trail is also available in the
day book where the administrator can view the alterations made.

To activate Tally Audit:

You can activate the Tally Audit feature during the creation of the Company. If your company is
already created,
1. Click Alt+F3 (Cmp Info) ->Alter.
2. Select company from List of Companies. 3. Set the feature Use Security Control to Yes.
4. Specify the Administrator Name & Password.
5. Repeat the entry of the password.
6. Activate the parameter Use Tally Audit Features to Yes.
7. Save the entries made in the Company Alteration screen.

To audit Transactions / masters:

1. Login Tally.ERP 9 as an Administrator.
2. Go to Gateway of Tally > Display > Statements of Accounts > Tally Audit
3. Select masters or vouchers.
4. View the vouchers that are not audited.
5. Select F7 (Accept one) and audit an entry or select Alt+F7 (Accept all) to audit all entries.

To audit entries those have been altered:

If any entry that is audited by you is altered by a user, then Tally.ERP 9 displays the entry in the
Tally Audit report. Click F12: (Configure) > Set the parameter Show Entered / Altered By to Yes.
You will find a list of all entries that are altered with the names of person entering it, person altering
it and date of alteration.

Tally Vault
Tally.ERP 9 offers a data encryption option called Tally Vault. The Tally vault password given
cannot be broken by any means. Tally.ERP 9 follows D E S (Data Encryption Standard) encryption
method.

To activate Tally Vault option

You can activate the Tally Vault facility at the time of creating a new Company or when altering an
existing one.

For a new Company:

1. Click Tally icon > Company Info. > Create

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2. Type the Name of the Company and other related details.
3. Type the Tally Vault Password and repeat the same.
4. Save screen.

For an existing Company:

1. Click Tally icon > Company Info. > Select Company
2. Select Alt+F3 (Cmp Info) > Change TallyVault
3. Type New Password and repeat.
4. Save screen.

Removal of data into separate company

Tally.ERP 9 allows you to maintain a company for any number of financial years. Once the books of
accounts are completed for previous financial years and if you wish you could split the company
data into multiple companies as per financial periods required. Tally.ERP 9 therefore offers a
feature to split your company data. You can specify the date from which the company has to be split
and Tally.ERP 9 will split the company to form two companies as per periods specified. Once the
data has been split, the closing balance of the first period (first company) becomes opening balance
for the next period (second company).

To split data:
1. Load the company for splitting.
2. Select Alt+F3 (Cmp Info) ->Split Company Data.
3. Select Company.
4. Specify the date in Split from (this is the starting date of the new period)
5. Save screen.
Tally.ERP 9 splits your company data as per the periods specified.

Multi- Directory for Company Management:

You can create multiple directories in your system to store Tally.ERP 9 data. Specify the path in
Tally.ERP 9 to access the data directly in these directories.

How to create companies in different directories:

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1. Click Alt+F3 > Create Company.
2. Specify path for Directory in Company Creation.
3. Specify name for the company and other related details.
4. Save screen

To Load Companies from different directories:

1. Click Alt+F3 ->Select Company.
2. Specify path for Directory and company for Name.
3. Press Enter

If you want to select one more company from a different directory:

1. From Company Info screen > Alt+F3 (Cmp Info) > Select Company.
2. Specify path for Directory and company for Name.
3. Press Enter. If needed, you can merge the two companies and view the consolidated reports.

Extensibility (TDL - Tally Definition Language)

The most powerful and important technical capability which is available in Tally.ERP 9 is the Tally
Definition Language (TDL). This is a rapid business application development language using which
Tally.ERP 9 itself has been developed. Almost anything in Tally.ERP 9 can be altered, customized,
extended using this language. New reports can be easily written or existing ones altered using this
language and added on to Tally.ERP 9 just by adding them to the INI file. All reports written in TDL
will automatically become available in HTML, XML format along with capability to print them, mail
them, publish them and so on. Our partners provide you the services for extending Tally.ERP 9 and
even ready-made extensions are available from them. This language capability is built into all the
editions of the product and you have to just get the specific extensions done as required for your
business. The language is easy to learn and we provide the necessary courses and tools just in
case you want to do it yourself!!!

Print Preview:
Before printing any report you would ideally like to view the content and format of reports / Invoices
/ Vouchers. Tally.ERP 9 offers you a facility to preview the report before printing or mailing. This is
the print preview option.

Unlimited Multi-User support:

You can install a Multi-user Version (Gold) of Tally.ERP 9 on a network having any number of
machines (computers) working with different operating systems like NT, Win 95, 98, Win 2000; on a
single subnet. Tally.ERP 9 works on any kind of network (i.e. NT, Novell, Peer-Peer N/W etc). The
protocol required is TCP/IP.

Concurrent Access of a Company Data by Multiple Tally.ERP 9 Silver

Installations:
Many businesses using two or more licenses of Tally.ERP 9 on their Local Area Network (LAN)
would like to access the common data. This was not possible in the earlier versions of Tally.ERP 9
within a LAN. If one of your users was accessing the data of a company, then the other user on the

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LAN would not be able to access the database of the same company. The database would be
rendered inaccessible.
Now Tally.ERP 9 comes with an enhanced feature, wherein more than one Tally.ERP 9 Silver
license user can access the data of a single company concurrently on a LAN (within a single
subnet).

Selection of Company data by the Administrator

1. Go to Gateway of Tally > Click F1 to select a company
2. Against Directory the path of the Data folder displays
3. Against Name, select the required company from List of Companies
4. Press Enter

Generation of Report
1. Go to Gateway of Tally > Balance Sheet
2. Click Alt+F1 to view a detailed report

Access to Company data to make entry by the user

1. Go to Gateway of Tally > Click F1 to select a company
2. Against Directory the path of the Data folder displays
3. Against this field use Backspace key to enter the path of the shared folder Data, located on the
Administrators system
4. Select the required company from List of Companies
5. Save screen

Accounting entry by the user

1. Go to Gateway of Tally > Accounting Vouchers
2. Select the required voucher screen (e.g. F5- Payment/F6 - Receipt)
3. Make the required entry
4. Save screen
As a user you can view the entry screen in your system and can execute all functions of Tally.ERP
9 as if you are working on Tally.ERP 9 on your local system.

Accessing Data on another system

1. Open the Explorer window and open the folders section.
2. Open the folder Tally.ERP 9
3. Right click on the sub-folder Data and then select Sharing and Security.

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By default the Share name is the name of the active folder, Data.
1. Select the option Share this folder.
2. Select Maximum allowed for User limit.
3. Click Apply & OK

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4. Click Security.
5. Under Groups or user names, select the required option.
6. Under Permissions - Allow, check all the options.
7. Click Apply & OK.

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This will facilitate the other users to carry out all functions for the shared folder Login Tally.ERP
9 as a user Go to Gateway of Tally > Click F1 (Select Cmp) to select a company
The Select Company screen with the List of Companies opens

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The Directory field contains the path of the local data

Use the backspace key to change the Directory.

Type the location of the shared folder Data. (You can type in the Administrators system name
where the shared Data folder is located).

Alternatively you can type the IP Address of the Administrators system where the shared folder is
located.

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If your companys database has to be shared on a default basis, then make the following changes
in the Tally.ini file.
You can mention the system name
OR
Enter the systems IP address.

Tally Ini file with Name

Tally Ini file with IP Address

After defining these steps you can use Tally.ERP 9 to work in a shared environment where more
than one user of Tally.ERP 9 silver can access the company database.

Internal Backup / Restore

Tally.ERP 9 has in-built user friendly features of backup and restore. You can take a backup in the
local hard disk or any external media. Tally.ERP 9 provides you with the capability to take backup of
one or more companies or all companies in a single directory.

To take a Backup:
1. Click Alt+F3 > Backup
2. Select Source (specify path)
3. Select Destination (specify path)
4. Select the Company/Companies for data backup
5. Save screen.

To Restore data:
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1. Click Alt+F3 > Restore
2. Select Destination (specify path)
3. Select Source (specify path)
4. Select the Company/Companies for data restore
5. Save screen

Import / Export of Data

Tally.ERP 9 allows you to import data from as well as export data to other software. You can import
and export in ASCII, Excel and XML formats. XML is now the most widely used format of exporting
data in the world. Any type of transactions can be exported to other software after suitably altering
their current structures to accept Tally.ERP 9 data. The reverse is also possible if you write a small
TDL program to accept data from other software. The data that is imported into Tally.ERP 9 can be
in either XML or DBF formats.
1. Go to Gateway of Tally > Balance Sheet.
2. Click Export.
3. Select Restricted (ASCII only).
4. Select Excel (Spreadsheet) in Format.
5. Type the name of file for Output File Name as required.
6. Specify other details.

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7. Click Yes for Export

Graphical Analysis of Data

Pictorials like graphs convey better information than just numbers. Tally.ERP 9 also provides you
feature for graphical (Bar graph) analysis of data. You can do a graphical analysis of reports like
Sales register, Purchase register, Ledgers, Funds flow, Cash flow, Item registers etc. This helps
you to analyse the financial data fully. Tally.ERP 9s graphical analysis provides for month wise
graphs and compares them with any other period. This feature helps you to locate quickly the high
and low periods (variations) in a financial year.

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Statutory Compliance Capabilities in

Tally.ERP 9
Tally.ERP 9 provides the following Statutory Compliance Capabilities namely,
n
Value Added Tax (VAT)
n
Service Tax
n
Tax Deducted at Source (TDS)
n
Excise (Manufacturers & Dealers)
n
Fringe Benefit Tax (FBT)
n
Tax Collected at Source (TCS)
n
Central Sales Tax (CST)

Value Added Tax (VAT)

Tally.ERP 9 provides VAT solution to across 32 states in India and other international countries like
Indonesia, Philippines and Bangladesh. The VAT compliance in Tally.ERP 9 is completely integrated with Accounting, Inventory & Reporting and simplifies these aspects with absolute ease,
accuracy and speed.
As per VAT Regulations, every registered business under VAT is required to generate VAT
compliant Tax Invoice and file Statutory Returns periodically in prescribed forms and documents
of the respective state.

Enable Value Added Tax (VAT)

To enable Value Added Tax (VAT) in Tally.ERP 9, follow the steps given below :
1. Go to Gateway of Tally > F11: Features
2. Select Statutory & Taxation (F3) and press Enter
3. In the Statutory & Taxation screen,
n
Set Enable Value Added Tax to Yes
n
Enable Set/Alter VAT details to Yes and press Enter, the VAT Details screen appears
n
Select State and Type of Dealer and the applicability date of VAT
n
Press Enter to go back to F11: Company Features screen
4. Type VAT TIN, Inter-State Sales Tax Number and Tax Information details
5. Save screen

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Create VAT Ledger Masters

Value Added Tax (VAT) is charged at every level of purchase and sales and thus the purchase and
sales transactions involve VAT. Create necessary Purchase, Sales, and Input and Output VAT
ledgers with the required VAT Classifications.
To create VAT Ledger Masters in Tally.ERP 9, follow the steps given below:
Go to Gateway of Tally > Accounts Info. > Create
1. Type the Name of the Ledger
2. Select the required Group
3. Select the Type of Duty/Tax as VAT
4. Select the required VAT Classification from the list of VAT Classification in the VAT/Tax Class
field (The Percentage of Calculation and Method of Calculation is automatically defaulted with
the % and On VAT Rate respectively)
5. Save screen

Create VAT Transactions

To create VAT transactions in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F8: Sales /F9: Purchase
1. Select the Partys Name
2. Select Stock Item, Quantity & Rate Details
3. Select VAT Ledger (Output VAT for Sales Voucher and Input VAT for Purchase Voucher)
4. Save screen

Print VAT Invoice

To print VAT Invoice,
1. Press Pg Up from the above screen
2. Press Alt + P, the Voucher Printing screen appears
3. Specify required details and press Enter to print

View VAT related reports

To view VAT Reports, follow the steps given below :
Go to Gateway of Tally > Display > Statutory Reports > VAT Reports
The VAT Reports menu consists of two reports, namely
1. VAT Computation
2. VAT Forms
n
VAT Return Forms
n
VAT Annexures

VAT Computation Report

The VAT Computation report displays various types of Input VAT Tax and Output VAT tax ledgers
employed and transacted during voucher entry. Tally.ERP 9 provides a clear-cut presentation on
how VAT is computed for a given period. It also provides a birds eye view of all transaction related
to VAT.

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To view VAT Computation Report
Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation

VAT Forms
The VAT Return Forms are State specific VAT Forms and Annexures to be submitted by the
registered VAT Dealer on Monthly / Quarterly basis. To print VAT Return Forms
Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Forms > VAT
Return Forms > Form VAT 100 Similarly, to generate VAT Annexures follow the path given below
and print the annexures Go to Gateway of Tally > Display > Statutory Reports > VAT Reports >
VAT Forms > VAT Annexures

Service Tax
Tally.ERP 9 tracks bill-wise (bill-by-bill) details and automatically calculates Service Tax payable
and Input Service Tax Credit on each service bill. It also allows you the flexibility to make
adjustments later. Tally.ERP 9 contains statutory masters predefined with Service Tax rates and
abatements for each taxable service.
With the help of Tally.ERP 9, you can adjust input credit against the service tax payable and
account for abatements / expenses and also specify exemption notification details. It also facilitates
generation and printing of Service Tax related reports, forms and challans in the prescribed formats
(viz., GAR 7 Challans and ST-3 Challans)

Enable Service Tax

To activate Service Tax in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
1. Set Enable Service Tax to Yes
2. Enable Set/Alter Service Tax details to Yes
3. Press Enter, the Service Tax Details screen appears,
4. Type all details in Company Service Tax Details
5. Save screen

Create Service Tax Ledger Masters

Service affects those services that have been notified by the Government on input and output
services, create input and output service tax ledgers.
To create Service Tax Ledger Masters in Tally.ERP 9, follow the steps given below:
Go to Gateway of Tally > Accounts Info. > Create
1. Type the Name of the Ledger
2. Select the required Group
3. Select the Type of Duty/Tax as Service Tax
4. Select the required Service Tax Category from the list of Service Tax Categories in the
Category Name field
5. Save screen

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Create Service Tax Transactions

To create Service Tax transactions in Tally.ERP 9, follow the steps given below:
Go to Gateway of Tally > Accounting Vouchers > F8: Sales /F9: Purchase
1. Select the Partys Name
2. Select the Service and value of Services rendered
3. Select Service Tax Ledger, the rate of service tax and the service tax amount is prefilled
automatically.

Print Service Tax Invoice

To print Sales Invoice for Services rendered in Tally.ERP 9, follow the steps given below :
1. Press Pg Up from the above screen
2. Press Alt + P, the Voucher Printing Screen appears
3. Specify required details in Voucher Printing screen
4. Press Enter to Print

Receipt of Payments
To record receipts for Services rendered, follow the steps given below:
Go to Gateway of Tally > Accounting Vouchers > F6: Receipt
1. Select the Bank Ledger in the Account field
2. Select the Party details
3. Select the relevant Service Tax Category in the Service Tax Ledger field of Bill-wise
Allocations for screen and press Enter

Payment of Service Tax

The Service Tax has to be paid to the credit of the Central Government by the 5th of the month
immediately following the calendar month in which the payments are received, towards the value of
the taxable services. The Service Tax Payments are required to be paid in GAR-7 Challan;
Tally.ERP provides the facility to generate GAR-7 with the required information.
To make payments for Service Tax,
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
1. Select the Bank Ledger in the Account field
2. Select the Output Service Tax Ledger
3. Set Provide Details to Yes and specify the Payment Details

Print GAR 7 Challan

To generate GAR 7 Challan for payment of Service Tax,
1. Press Pg Up from the above screen
2. Press Alt + P, the Voucher Printing appears
3. In the Voucher Printing screen, ensure Print GAR - 7 Challan option is set to Yes
4. Press Enter to Print

View Service Tax Reports

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According to Service Tax Rules, every registered service provider is required to maintain proper
Books of Accounts and Records for all input services consumed and output services provided by
them during the specified period.
In Tally.ERP 9, the following Service Tax reports are available:
1. Service Tax Payables
2. Input Credit Form
3. ST3 Report

To view Service Tax Reports, follow the steps given below:

Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports

Service Tax Payable

The Service Tax Payable Report delivers information on total value of taxable services rendered
and realized during the given period. It provides party-wise and category-wise tax obligation of the
assesses for the particular period. You can generate the service tax payable report to know the
Service Tax liability before adjustment.
Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Service Tax
Payables
To view the Service Tax Payable Report in detailed mode, press Alt+F1

Input Credit Form

If the assesses has availed credit of Service Tax, he/she is required to furnish a return in Performa
in terms of rule 5(4) of the service tax credit rules, along with his half yearly return. If the input credit
is in excess of output service tax payable during a particular month or quarter, the surplus is
transferred to the next period and is available for set off during that month or quarter, as the case
may be.
To view Input Credit Form,
Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > Input Credit
Form

Print ST 3 Half Yearly Return

According to Service Tax Rules, an assesses is required to submit half-yearly return in Form ST-3
within 25 days of the end of the half-year. Tally.ERP 9 facilitates the generation of half-yearly ST-3
Challan in the manner as prescribed under Rule 7 of the Service Tax rules 1994.
To view the ST 3 half-yearly return
Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports > ST3 Report
1. In the Printing screen,
2. Specify April- September 2008 in the Period For field
3. Type Place and Date details

Tax Deducted at Source (TDS)

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Tax Deducted at Source is one of the modes of collecting Income Tax from the taxpayers as per the
rates mentioned under IT Act and Rules. The deductor of the Tax (TDS) deducts the tax from the
deductee, on payment of specified Incomes and deposits the same to the credit of Central
Government within the specified period along with the challan in prescribed format.
Tally.ERP 9s TDS feature is designed to handle all your TDS requirements easily and with
complete flexibility. It allows you to configure the TDS ledgers, by specifying the nature of payments
and type of assessee along with the TDS rates.
With the help of Tally.ERP 9, you can generate and file Quarterly/Monthly Returns, Challans viz.,
Form16 A and Certificates in prescribed formats. You can also generate e-TDS and file in
NSDL compatible formats.

Activate Tax Deducted at Source (TDS)

To activate TDS in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
1. Set Enable Tax Deducted at Source to Yes
2. Enable Set/Alter TDS details to Yes
3. The Company TDS Deductor Details appears Specify the TAN Number, IT Circle, Deductee
Type and other details Save screen
4. Specify PAN/Income Tax No. Save F11: Statutory & Taxation screen

View Deductee Types

To view Deductee Types predefined in Tally.ERP 9,
Go to Gateway of Tally > Display > Statutory Info. > Deductee Types
Select the Deductee Type (For e.g., select Company Resident). From the List of Deductee
Types

View TDS Nature of Payments

To view TDS Nature of Payment masters predefined in Tally.ERP 9,
Go to Gateway of Tally > Display > Statutory Info. > TDS Nature of Pymt
Select any type from the list of TDS Nature of Payments to go to TDS Nature of Pymt Display

Create TDS Ledgers

To create TDS ledgers in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > Accounts Info. > Create
1. Type the Name of the Ledger
2. Select the required Group
3. Select the Type of Duty/Tax as TDS
4. Select the required Nature of Payment from the drop down list

Create TDS Transactions

To create transactions involving TDS, follow the steps given below:
Step 1 : Booking of Expenses and TDS Deduction

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Go to Gateway of Tally > Accounting Vouchers > F7: Journal
1. Select the Expenses Ledger and total amount in the Debit side
2. Select the Party Name and the amount in the Credit side
3. Press Enter, the TDS details screen appears

Press Enter to accept the Nature of Payment

Set Yes/No to Deduct TDS Now in the transaction or later

Select the TDS Ledger in the TDS Duty Ledger field

Press Enter to accept the screen

4. Select TDS ledger and press Enter to accept the amount Step 2 : Payments to Third Parties
after TDS deduction.
To account for payment made to party after deduction of TDS Go to Gateway of Tally >
Accounting Vouchers > F5: Payment
1. Select Bank Ledger in the Account field
2. Select the Party Name and specify the amount

TDS Deduction on Advance Payments

To deduct TDS on advance payments made to third parties, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F5: Payment (As Voucher)
1. Select Party Name and specify the amount in the Debit side
2. Select the TDS ledger in the Credit Side and specify the Nature of Payment in the TDS Details
screen
3. Select End of List and press Enter
4. Select the Cash / Bank Ledger in the Credit side
5. Save the screen

Deduction of TDS separately

If the expenses are booked on a earlier date and the TDS is required to be deducted at a later date,
follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F7 : Journal
1. Press Alt+S (TDS Deduction) and enter the following details
2. Specify the Till Date
3. Select the Party Details
4. Select Nature of Payment

Payment of TDS
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
1. Press Alt+S (TDS Helper) and enter the following details
n
Specify the Deducted Till Date
n
Select the Section under which deducted
n
Select Nature of Payment

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n
n

Select the Deductee Status

Select the Cash/Bank Ledger
2. Set Provide Details to Yes and specify the Payment Details (Cheque/DD No. and Date etc.)

Print ITNS 281 Challan

1. Set Print as TDS Challan to Yes
2. Specify the Filing Date
3. Press Enter to PrintTo Print ITNS 281 challan, follow the steps
n
Press Pg Up from the above screen
n
Press Alt+P
n
In the Voucher Printing screen,
To view TDS Reports, follow the steps given below:
Go to Gateway of Tally > Display > Statutory Reports > TDS Reports . Similarly, you can
generate eTDS Returns and TDS related reports.

Excise (Manufacturer & Dealer)

Tally.ERP 9 provides complete excise solution for manufacturers as well as dealers dealing in
excise goods. It facilitates generation of Excise Invoice for traders and manufacturers (covered
under the Central Excise Act) as per Rule 11 of Central Excise Rules. It allows you to maintain
complete information of purchase and sale of excisable goods and helps in printing the same in the
Excise Invoice.
With the help of Tally.ERP 9, you can generate Excise reports and registers in the prescribed
formats for Manufacturers and Dealers,as the case may be.

Enable Excise
To activate Excise for Manufacturer/Traders,
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
1. Set Enable Excise to Yes
2. Set/Alter Excise Details to Yes and press Enter
3. Select Manufacturer / Dealer (as the case may be) from the Registration Types

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4. Specify all other details

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5. Save the screen

Create Tariff Classification

To Create Tariff Classification,
Go to Gateway of Tally > Inventory Info. > Tariffs Classifications > Create
1. Type all required details

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Create Excisable Stock Item

To Create Excisable Stock Items:
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
1. Specify the details for Name and other information.

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2. Enable Set/Alter Excise Details to Yes and specify the details

3. Select the applicable Excise duties, the Rate and Method of calculation is defaulted
automatically

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Create Excise Voucher Type

To Create an Excise Voucher Type for purchase,
Go to Gateway of Tally > Accounting Info. > Voucher Types > Create
1. Set Use for Excise to Yes
2. Specify the Default Excise Unit
3. Specify all other required details as shown

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Similarly, create a Excise Sales Voucher Type for recording an excisable sales.

Purchase of Excisable Goods

To account for excise duty paid on purchases of excisable stock items,
Go to Gateway of Tally > Accounting Vouchers > F9: Excise Purchase
1. Enter the Party Name
2. Specify the Supplier Details

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Specify the Excise Details as shown

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Set Yes to Show Statutory Details to verify/check the calculation of Assessable Value

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The Excise Purchase voucher appears as shown :

Sale of Excisable Goods

To account for excise duty chargeable on sales of excisable stock items,
Go to Gateway of Tally > Accounting Vouchers > F8: Excise Sales . Specify the required details
as explained in the previous section
2. Save screen
3. Press Alt+P to Print Excise Invoice under Rule 11.

View Excise Reports

With the help of Tally.ERP 9, you can generate Excise reports and registers in the prescribed
formats for Manufacturers as well as dealers dealing with Excisable goods. Tally.ERP 9 provides
the following reports for Excise Dealers :
1. Quarterly returns (Form 2 )
2. Excise Stock Register (RG 23D)
3. Excise Purchase Bill Register
4. Sales and Purchase Extract
To view Dealer Excise Reports, Go to Gateway of Tally > Display > Statutory Reports > Dealer
Excise Reports

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Excise Stock Register

Every Registered Dealer has to maintain a Excise Stock Register to record the daily receipt and
issue of excisable goods ready for inspection by the officers of the department. The Excise Stock
Register in Tally.ERP 9 gives the purchase and sales information. It has two sections, which are,
the Receipt section for Purchases and Issues section for the Sales/Debit Note/Credit Note details.
Go to Gateway of Tally > Display > Statutory Reports > Excise Reports > Dealer > Excise
Stock Register

1. Use arrows to scroll to right side of the report

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Form RG 23D
The Form RG 23D report provides the details of Excise purchases and the corresponding Sales
transactions
Similarly, you can generate other Excise Reports for a Excise Dealer viz.,
1. Excise Purchase Bill Register
2. Sales and Purchase Extract
3. Form 2
Tally.ERP 9s simple yet powerful Excise feature enables you to record transactions related to
Excise with ease. The Excise for manufacturer functionality in Tally.ERP 9 is more advanced and
works similar to Excise for dealers functionality. Tally.ERP 9 provides the following reports for
Excise Manufacturers :
1. Excise Computation
2. PLA Register
3. Daily Stock Register
4. Form ER1
5. CENVAT Credit Availed report

Fringe Benefit Tax

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The Fringe Benefit Tax is levied on employer in respect of fringe benefits provided/deemed to be
provided by him to his employees during any financial year commencing on or after 1.4.2005. The
Fringe Benefit Tax is payable at the rate at the 30% of the assesable value of fringe benefits. In
Tally.ERP 9, Fringe Benefits classifications are predefined with the assessable value and the rate of
FBT for each nature of Fringe benefits.

Enable Fringe Benefits Tax

To enable Fringe Benefits Tax in Tally.ERP 9, follow the steps given below:
Go to Gateway of Tally > F11: Features > Statutory & Taxation
1. Set Enable Fringe Benefit Tax (FBT) to Yes
2. Enable Set/Alter FBT Details to Yes
3. Type details in Company FBT Assessee Details

View FBT Assessee Type Masters

The FBT Assessee details provides the rates of tax, surcharges and Cess that are to be deducted
and remitted to the Government.
To view the FBT Assessee Type details, Go to Gateway of Tally > Display > Statutory Info. >
FBT Assessee Type

View FBT Category Masters

The FBT Category details provide the details of eligible percentage of the expenditure that is to be
considered while computing the FB Tax.

Create FBT Masters

To create FBT Tax Ledgers, follow the steps given below :
Go to Gateway of Tally > Accounts Info. > Ledger > Create
1. Type the Name of the Ledger
2. Select the required Group
3. Select FBT in the Type of Duty/Tax

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Create FBT Transactions

To account expenses that attract FBT using accounting vouchers, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
1. Specify the following details

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Payment of FBT
To remit fringe benefit tax deducted to the Government, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F5: Payment
1. Press Alt+F: FBT Helper
2. In FBT Filters,
Specify details for Type of Payment
Select FBT Ledger
Specify details in From Date & To Date

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Press Enter to save the screen

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Print ITNS 283 Challan

To Print ITNS 283 challan, follow the steps
1. Press Pg Up from the above screen
2. Press Alt+P
3. In the Voucher Printing screen, ensure Print as FBT Challan is set to Yes
4. Press Enter to Print

View Fringe Benefit Tax Reports

To view Fringe Benefit Tax Reports, follow the steps given below
Go to Gateway of Tally > Display > Statutory Reports > FBT Reports > FBT Computation
To view Fringe Benefit Tax Return in Form 8,
Go to Gateway of Tally > Display > Statutory Reports > FBT Reports > FBT Returns The FBT
Returns in prescribed Form 8 appears with annexure.

Tax Collected at Source (TCS)

TCS is the Tax Collected at Source by you (collector) from a Buyer/lessee (collectee/payee). This
tax to be collected at source is applicable to goods, as specified under Section 206C of the Income
Tax Act, 1961. If the purchase value of goods is X, the amount payable by the buyer is X+Y, where
Y is the value of Tax at Source. The seller deposits the tax amount Y at any designated branch of
banks authorized to receive such payments. As a seller, lessor or licensor, you are responsible for

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the collection of tax from the buyer, lessee or licensee. The tax is collected for sale of goods or on
transactions which involve receipt of amounts from buyers in the form of cash or cheque, draft or
any other mode.
The certificate of collection of Tax at Source has to be submitted in Form No. 27D by persons
collecting tax at source within a week from the last day of the month in which the tax was collected.

Enable Tax Collected at Source (TCS)

To activate Tax Collected at Source in Tally.ERP 9, follow the steps given below:
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
1. Set Enable Tax Collected at Source (TCS) to Yes
2. Enable Set/Alter TCS Details to Yes and press Enter
3. In the Company Deductor/Collector Details screen, specify the required details

View TDS Nature of Goods

To view TCS Nature of Goods masters, follow the steps given below :
Go to Gateway of Tally > Display > Statutory Info. > TCS Nature of Goods
1. Select TCS Nature of Goods from the List of TCS Types to display

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The details in the screen comprise of the fields Name, Section and Payment Code and a table,
where you can view details such as Collectee Type, Applicable from, Exemption Limit and Rate.
Here you are viewing the details in the alteration mode.

View TCS Collectee Types

To view TCS Collectee Types, Go to Gateway of Tally > Display > Statutory Info. > Collectee
Types
Select from the List of Collectee Types to display the Collectee Type
The details of this screen comprises of the fields, Name, Residential and Collection Status. There is
a table, where you view details such as, Applicable From, Surcharge exemption Limit, Surcharge
%, Additional Surcharge (Cess) and Additional Education (Cess).

Create TCS Masters

To create TCS tax ledgers, follow the steps given below : Go to Gateway of Tally > Accounts
Info. > Ledger > Create
1. Type the Name of the Ledger
2. Select the required Group
3. Select TCS in the Typeof Duty/Tax
4. Select the required TCS Type of Goods in the Nature of Goods/Contract/License/Lease field

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Similarly create ledger accounts for the sale of items that attract TCS.

Create TCS Stock Item

To Create TCS Stock Items, follow the steps given below
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
1. Specify the Name of the Stock Item
2. Select the required TCS Nature of Goods

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Create Sales involving TCS

To create Sales Invoice for sale of TCS goods, follow the steps given,
Go to Gateway of Tally > Accounting Vouchers > F8: Sales
1. Select the Party Name
2. Enter the Stock Item, Quantity and Rate details
3. Select the TCS Ledger and press Enter

Press Enter to accept the TCS Details sub screen

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View TCS Reports

Tally.ERP 9 provides the following TCS Forms and Reports,
Form 27D
Form 27E (eTCS Forms)
Form 27EQ (eTCS Forms)
Form 27B
To view Tax Collected at Source Reports, Go to Gateway of Tally > Display >Statutory Reports
>TCS Reports > Print Form 27B
Similarly, you can generate other TCS Reports in Tally.ERP 9.

Central Sales Tax

CST is a tax levied on inter-state sales of goods by dealers by the Central Government. CST is
applicable only if you sell goods to dealers in other states but not levied on sales made intra state or
on import/export sales. The Inter-state sale occurs when sale or purchase constitutes movement of
goods from one state to another. Accordingly, when you send consignments to your agents or
transfer goods to your branch/ other offices, this is not a considered as sale under the CST Act.
CST is payable in the state from where you sell the goods and commence its movement. The tax
you pay is collected and retained by the state where the transaction originated. The CST collection
and administration is performed by the authorities of your states Sales Tax Dept. Thus, the State
Government Sales Tax officer who assesses and collects VAT (state) also collects and assesses
and CST.

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The CST feature is enabled automatically once the VAT feature is enabled in Tally.ERP 9.

Create CST Ledgers

To create tax ledgers for CST, follow the steps given below : Go to Gateway of Tally > Accounts
Info. > Ledger > Create
1. Type the Name of the Ledger
2. Select the Group as Purchase Accounts
3. Set Is VAT Applicable to Yes and select the VAT Classification

Create Stock Items for CST Sales

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Go to Gateway of Tally > Inventory Info. > Stock Items > Create
1. Specify name and other details.
2. Save screen

Create CST Sales Transactions

To Create accounting entry for CST, Go to Gateway of Tally > Accounting Vouchers > F8: Sales

View CST Reports

To view CST Reports, follow the steps given below:
Forms Receivable Report Groupwise Go to Gateway of Tally > Display > Statutory Reports
> CST Reports > Forms Receivables- >Group/Ledger
Forms Receivable Report - Groupwise

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Forms Receivable - Ledgerwise Report

Similarly, you can generate reports under Forms Issuable Report.

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Payroll Compliance in Tally.ERP 9

Payroll refers to a series of accounting transactions involved in the process of paying employees for
services rendered after taking into account all statutory and non-statutory deductions. The efficient
payroll system in Tally facilitates error-free, accurate and timely employee payments while ensuring
that the employment is well within the valid work permit.
Payroll in Tally.ERP 9 handles all the functional, accounting and statutory requirements of the
payroll department. It provides you with the flexibility to define earning & deduction heads and
supports the computation and deduction of ESI, EPF, Gratuity, etc. It supports user defined
production units like attendance, production, time based remuneration, and other methods of
calculating payroll. Comprehensive reports based on cost centers and employee wise cost can be
generated.

Enable Payroll
To activate payroll feature, Go to Gateway of Tally >F11: Features > Press F1: Accounting
Features
1. Set Maintain Payroll to Yes
2. Set More than ONE Payroll / Cost Category to Yes
3. Save screen
To activate Payroll Statutory Features Go to Gateway of Tally > F11: Features > press F3:
Statutory & Taxation
1. Set Enable Payroll Statutory to Yes
2. Set Set/Alter Payroll Statutory Details to Yes

Create Payroll Masters

To create payroll masters:
Go to Gateway of Tally > Payroll Info.

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The Payroll Info. Screen is displayed. You can create masters for Employee Groups, Employees,
Units(Work), Attendance/Production Type, Pay Heads, Salary Details and Voucher Types.

To Configure Payroll: Go to Gateway of Tally > F12:Configuration > Payroll Configuration

1. Set Show Statutory Details to Yes
2. Set Show Passport & Visa Details to Yes
3. Set Show Contact Details to Yes

Create Pay Heads

To Create Pay Heads Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
1. Specify the Name of Pay Head.
2. Specify the related details under Pay Head Info.
3. Save screen

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Similarly you can create pay heads for DA, HRA, Conveyance etc..

Create Employee Group

To Create an Employee Group: Go to Gateway of Tally > Payroll Info. > Employee Groups >
Create
1. Select Category
2. Specify details for Name & Under
3. Save screen

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Create Employee Master

To Create an Employee Master:
Go to Gateway of Tally > Payroll Info. > Employees > Create
1. Select Category and type Name of Employee.
2. Specify all related details - like Under, Date of Joining, etc.
3. Save screen

Create Salary Details

To Create Salary Details, Go to Gateway of Tally > Payroll Info. > Salary Details > Create
1. Select Employee from Name of Employee/Group
2. Specify all related details - like Under and Salary Details.
3. Save screen

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Record Attendance Voucher

To record Attendance through Attendance Vouchers: Go to Gateway of Tally > Payroll Vouchers
> Ctrl+F5
1. Press Alt+A (Attendance Auto Fill) to prefill employee payroll details
2. In Employee Filters screen,
Type the date values in From and To fields.
Select the appropriate cost category from List of Categories.
Select the Employee/group from List of Group/Employees.
Select the Attendance/Production Type from List of Attendance/ ProductionTypes.
Specify the Voucher Date as applicable.

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Payment of Salaries
To record Salary Payment through Payroll Vouchers: Go to Gateway of Tally > Payroll Vouchers
> press Alt+A
1. In Employee Filters screen,
Type the date values in From and To fields.
Select the appropriate cost category from List of Categories.
Select the employee/group from List of Group/Employees.
Select the bank account for Payroll ledger.
2. Press Enter to return to payroll voucher screen. Under Particulars the values against the Pay
Heads and Amount appear automatically. This happens for Calculation Type being Flat Rate and
As Computed Value.
3. Type values for Pay Heads whose Calculation Type is User Defined Value.
4. Save screen.

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View Payroll Reports

To view Payroll Reports: Go to Gateway of Tally > Display > Payroll Reports You can generate
the following reports in Tally.ERP 9 viz., Statements of Payroll, Attendance Sheet, Attendance
Register, Gratuity Report etc.

To view Payslip
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payslip
Select the required Employee and press Enter

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To view Pay Sheet

Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Sheet

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To view Payroll Statement
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payroll
Statement

Similarly view all the reports of the payroll

( Ledger Group Creation )

Opening stock
Stock in hand
Purchase
Purchase account
Purchase return
Purchase account
Fright charges
Directexpenses
Cartage and coolie
Directexpenses
Octroi
Directexpenses
Manufacturing wages Directexpenses
Coal, gas, water
Direct expenses
Oil and fuel
Directexpenses
Factory rent, insurance,
electricity, lighting and Direct expenses
heating
Sales
Sales account
Salary
Indirect expenses

Rent received
Indirect income
Dividend received
Indirect income
Bad debts recovered Indirect income
Profit by sale of assets
Indirect income
Sundry income
Indirect income
Loan from others
Loan Liabilities
Bank loan
Loan Liabilities
Bank overdraft
Bank OD
Bills payable
Current Liabilities
Sundry creditors
Sundry creditors
Mortgage loans
Secured loans

Expense outstanding Current Liabilities

Income received in Current Liabilities
advance
Postage and telegrams
Indirect expenses
Other liabilities
Current Liabilities
Telephone charges Indirect expenses
Capital
Capital account
Rent paid
Indirect expenses
Drawings
Capital account
Rates and taxes
Indirect expenses
Cash in hand
Cash in hand

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Insurance
Indirect expenses
Cash at bank
Bank account
Audit fees
Indirect expenses
Fixed deposit at bank Deposit
Interest on bank loan Indirectexpenses
Investments
Investments
Interest on loans paid
Indirect expenses
Bills receivable
Current asset
Bank charges
Indirect expenses
Sundry debtors
Sundry debtors
Legal charges
Indirect expenses
Closing stock
Stock in hand
Printing and stationery
Indirect expenses
Stock of stationery
Current asset
General expenses
Indirect expenses
Loose tools
Fixed asset
Sundry expenses
Indirect expenses
Fixtures and fittings Fixed asset
Discount allowed
Indirect expenses
Furniture
Fixed asset
Carriage outwards or Indirect expenses
Motor vehicles
Fixed asset
sales
Traveling expenses Indirect expenses
Plant and machinery Fixed asset
Advertisement
Indirect expenses
Land and building
Fixed asset
Bad debts
Indirect expenses
Leasehold property Fixed asset
Repair renewals
Indirect expenses
Patents
Fixed asset
Motor expenses
Indirect expenses
Goodwill
Fixed asset
Depreciation on assets
Indirect expenses
Prepaid expenses
Current asset
Interest on investment
Income outstanding Current asset
received
Indirect income
Interest on deposit
received
Indirect income
Interest on loans
received
Indirect income
Discount received
Indirect income

( Accounts with Inventory )

Create a company in the name Mobile Company for the year ending 2001. Prepare the required
ledgers, stock group, category, items, Godown and pass the transactions taking the following into
consideration, entry to be done in invoice mode.

F11 Features to be activated:Under Nokia

Under Motorola
.
Under Samsung
Under LG
Under Sony Ericson
Transaction

6610, 3310, N-Series, E-Series

V8 silver, Q9H, Slvr9.
LNRV-8, V-35, TY-661.
MFPD-355, MF-PE500, MF-PD365
T 18, R-320

Purchased the following on 01.06.2010, discount 5%

Quantity

Name

Rate

Godown
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3
2
2
4
2
5

6610
V8-silver
MF_PD365
R-320
E-Series
TY 661

12000
5500
75000
7500
5000
4000

Mumbai
Mumbai
Pune
Pune
Mumbai
Mumbai

On 02.06.2010 sold following Mobiles to Mobile town, discount 2%

Quantity

Name

Rate

1
1
1

3310
MFPD 355
Indica

4750
6100
4500

On 01.07.2010 sold following Mobiles to Archies Gallery, discount 3%

Quantity Name

Rate

1
1

580000
430000

SLVR 9
Q9H

On 02.07.2010 sold following Mobiles to A-1 Mobile store.

Quantity Name

Rate

1
1

460000
600000

T 18
R -320

On 31.07.2010 sold following Mobiles to Rajesh Mobile Store, discount 2%

Quantity

Name

Rate

1
1
1

N -Series
550000
TY-661
450000
MFPD-355
600000

Adjustment:
Received on 01.08.2010 Rs. 12500/- from continental Motors after deducting discount on total bill
amount.
Paid 50% bill amount from which 7.5% discount on bill amount has been paid for Sony Ericson On
02.08.2010.
Paid full amount after deducting 15% discount to Nokia 01.09.2010.
Sold 1 Nokia N series @ Rs. 6000 and 1 Sony Ericson T18 @ Rs. 4000 to Imran Mobile shop.

Pass the Journal Entries

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Create a company M/S Albert & Brothers for the year 01.04.2006 and books beginning from
01.05.2006 and pass the transactions considering the following 2006
May 1 Albert starts business with Rs. 50,000. He opens a bank account and deposits Rs. 20,000.
May 1 Bought furniture for Rs. 5,000, machinery for Rs. 10,000.
May 2 Purchased goods for Rs. 14,000.
May 31 Sold goods for Rs. 8,000.
May 31 Purchased goods from Malhotra & Co. Rs. 11,000.
June 1
Paid telephone rent for the year by cheque Rs. 500.
June 1
Bought one typewriter for Rs. 2,100 from Universal Typewriter Co. on credit.
June 2
Sold goods to Keshav Ram for Rs. 12,000.
July 1 Sold goods to Rajesh Kumar for Rs. 2,000 cash.
July 1 Amount withdrawn from bank for personal use Rs. 1,500.
July 2 Received cash from Keshav Ram Rs. 11,900 and discount allowed Rs. 100.
July 31
Paid into bank Rs. 5,800.
July 31
Bought 50 shares in X Y & Co. Ltd. At Rs. 60 per share, brokerage paid Rs. 20.
Aug 1 Goods worth Rs. 1,000 found defective were returned to Malhotra & Co. and balance of the
amount due to them settled by issuing a cheque in their favour.
Aug 1 Sold 20 shares of X Y & Co. Ltd. at Rs. 65 per share, brokerage paid Rs. 20.
Aug 2 Bought goods worth Rs. 2,100 from Ramesh and supplied them to Suresh at Rs. 3,000.
Aug 2 Suresh returned goods worth Rs. 100, which in turn were sent to Ramesh.
Aug 31
Issued a cheque for Rs. 1,000 in favour of landlord for rent .
Aug 31
Paid salaries to staff Rs. 1,500 & received from travelling salesman Rs. 2,000 for
goods sold by him, travelling expenses Rs. 100.

Assignment 2.1
Gateway of Tally-Inventory Info-Stock Group-Create
Chocolate
Medicines
Cotton Pants
Jeans Pants
Formal Shirts
T-Shirts

Gateway of Tally > Inventory Info > Stock Item > Create
5 Stars, Kitkat Chocolate, Munch .Dairy
milk,
Moov ,DCold ,Adhesives tape rolls, Band Aid box ,Boric Acid powder..Medicines
Lee
,Nike........TShirts
Pan America, Peter England...Shirts
Tiger,
Ruff
and
Tuff......Jeans Pant

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Arrow, ExCaliber.........Cotton Pants.

Assignment 2.2
Particulars Brand Name & Item

Quantity

Rate

Amount

Total
Floppy Disk
15123
Sony
1.44 MB
1.2 MB

15
8

210
185

3150
1480

Maxell
1.44 MB
1.2 MB

14
6

212
191

2968
1146

Verbatim
1.44 MB
1.2 MB

18
13

215
193

3870
2509

Compact Disc CDs

3640
Sony Writable
HP Writable
Mouse
Logitech
Genius

6
14

175
185

1050
2590

20
15

590
210

1180
3150

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PRACTICAL ASSIGNMENTS
JOURNAL ENTRIES
Enter the Following Transaction into Sai Veg world.
Purchase Transactions
Date

Particulars

1/4/2010

Purchased 20 Boxes of 1.44 MB Sony Floppies @ Rs. 215 each from Mr.
ArvindEnterprises Bill No. 4304 amounting to Rs. 44300/Purchased 3 Verbatim @ 18000/- each from M/s.Ajay @ Co. Bill No.24920amounting
to Rs. 84000/50 CDs of HP purchased from M/s. Mayan Trade Links @ Rs. 175 per C.D. as per
Bill No. 18719 amounting to Rs. 7750/Purchased from M/s. Abhor So techs Pvt. Ltd. As per Bill No. 13628 amounting to
Rs.53140/-. The items included ware 15 Boxes of Maxell 1.44 MB floppies @ 212/- &
10Boxes Verbatim 1.44 MB Floppies Rs. 216/- per Box.

1/5/2010
2/4/2010
1/5/2010

Sales Transactions:
Bill no
1001
1002

Party & Item Details

Mr.Shetty Ltd
Logitech Mouse
Torrie Pvt Ltd

Qty
5

Rate
250

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1003
1004

Sony 1.44MB
Sony 1.2 MB
Verbatim 1.44MB
Verbatim 1.2MB
Floppies
George
Logitech Mouse
John
Genius Mouse

10
5
15
2

240
150
175
125

150

250

Receipt Transaction
Date

Particulars

31/3/2011

Received Cash Rs. 13210/- from M/s shetty against Bill No. 1103/97-98

2/5/2010

Received a Cheque of Rs. 14468/- from M/s. George against Bill No.1003 the same
was deposited into Axis i Bank.

3/6/2010

Deposited into State Bank of India a Cheque of Rs. 20000/- received from John

1/6/2010

Received Cash from Torrie Ltd Rs. 3000/- against Bill No. 1002

Payment Transaction
Date

Particulars

2/6/2010

Issued Cheque No. 2412218 of Rs. 1900/- from Indian bank in favor of M/sArvind
Enterprises against Bill No.4304.

2/6/2010
1/7/2010

Paid Cash 257/- as Tea Allowance for Staff.

Paid Rs. 15000/- in cash to Mayan Trade in settlement of their account.

1/7/2010

Issued Cheque No. 2412219 of Rs. 20000/- from Axis bank in favor of Abhor Soft tech
Traders advanced for the 10 Monitors.

VALUE ADDED TAX (MULTIPLE VAT %)

F11 (Features) F3(Statutory)
Enable Vat Yes
Set Alter Vat Details Yes
Display-> Statutory Info
Display-> Statutory Report

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GO TO Account Info
Ledger->Create

Purchase Accounts
1) Purchase @ 1%
2) Purchase @ 12.5%
3) Purchase @ 20%
4) Purchase @ 4%
5) Purchase @ Inter-State

Sales Accounts
1) Sales @ 1%
2) Sales @ 12.5%
3) Sales @ 4%
4) Sales @ 20%
5) Sales @ Inter-State

Duties and Taxes Vat Class

1) Input Vat @ 1%
2) Input Vat @ 4%
3) Input Vat @ 12.5%
4) Input Vat @ 20%
5) Output Vat @ 1%
6) Output Vat @ 4%
7) Output Vat @ 12.5%
8) Output Vat @ 20%

CST Class
1) Input Vat @ Inter-State
2) Output Vat @ Inter-State

Sundry Creditors
1) Priya Creditors
2) Vicky Creditors
3) Sanjay Creditors
4) Sunil Creditors
5) Vijay Creditors

Delhi
Andhra pradesh
Calicut
Delhi
Maharashtra

Sundry Debtors
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1) Manoj Debtors
2) Arvind Debtors
3) Wahab Debtors

Maharashtra
Gujarat
Maharashtra

GO TO Inventory Info
Stock Items
Item
Item
Item
Item
Item

No 1
No 2
No 3
No 4
No 5

@ 4%
@ 20%
@ 12.5%
@ 1%
@ 4%

Transactions:1) The following items purchased from Priya

Item No 1
100 Qty
Bill No. 1112

175/- eachItem No 5

135 Qty

135/- each

2) The following items purchased from Vicky

Item No
Item No 2
Item No 3
Item No 4
Item No 6
Bill No. 1102

170
250
170
225
125

Qty
Qty
Qty
Qty
Qty

165/- each
75/- each
110/- each
170/- each
150/- each

3) The following items purchased from Sunil (Inter-state) Vat 4%

Item No 3
Item No 1
Bill No. 2123

100 Qty
50 Qty

125/- each
135/- each

4) The following items purchased from Vijay (Inter-State) Vat 12.5%

Item No 4
Item No 5
Bill No. 4154

100 Qty
75 Qty

225/- each
175/- each

5) The following items sold to Manoj

Item No 1
Item No 2
Item No 3
Item No 4
Item No 5
Bill No. 201

150
125
110
135
120

Qty
Qty
Qty
Qty
Qty

200/- each
115/- each
150/- each
190/- each
250/- each

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6) The following items sold to Arvind (Inter-state) Vat 4%
Item No 5
Item No 2
Bill No. 202

50 Qty
40 Qty

195/- each
190/- each

7) The following items sold to Tushar

Item No
1 60 Qty
Item No
350 Qty
Item no
640 Qty
Bill No. 203

195/- each
200/- each
180/- each

Vat Report
Display->Statutory Report
(Cost Centre)
1. Create a Company for the year 2009-2010
2. Press F11 (Company Features) and set Yes to the following options
a. Maintain Cost Centers
b. More than ONE Cost Category
3. Prepare the following Cost Categories with Cost Centers:
Department.
Agent
a) Back office
a) Moin
b) Accounts
b) Shahrukh
c) Salman
4. Pass the following entries:
a) Rs. 1500/- paid towards Printing & Stationery A/c from Petty Cash for Kolkata Branch, Accounts
Dept on 01/04/2004
b) Rs. 1900/- withdrawn from HDFC Bank (Chq no: 22501) for office use on 01/04/2004.
c) Salary of Rs. 1500/- paid to Kolkata Branch, Accounts Dept. Through cheque of HDFC (Chq
No: 123792) on 01/04/2009.
d) Commission paid in Cash to the following Sales Agents on 01/04/2004.
Shahrukh: Rs 500/-, Salman: Rs 300/- and Moin: Rs 200/e) Office Rent paid in Cash Rs 5000/- for Delhi Branch, Sales Dept on 01/04/2004.

TDS (Tax Deducted at Source)

Press F11 (Company Features), set Yes to the following options
a) Enable TDS
b) Set/Modify other Company Features
Enter TDS Deductor details (supply the following sample data)
Tax Assessment number
: ABCH121A

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Income Tax Circle/Ward (TDS)
Deductor Type
Name of Person responsible
Designation

: THFD45 100
: Others
: Shanti
: Manager

Press F12 (Configuration)->Voucher Entry;

turn on the option Allow Alteration of TDS and Values.

Prepare the following ledgers for TDS:

a) TDS on Technical Services
1. Under:
2. Type of Duty/Tax:
3. Nature of payment:
Ignore TDS Exemption Limit: No

Duties & Taxes

TDS
Fees for Professional or Technical Services 4.

b) TDS
1.
2.
3.
4.

Under:
Duties & Taxes
Type of Duty/Tax:
TDS
Nature of payment:
Any
Ignore TDS Exemption Limit:
No

NOTE: - In Tally ERP version, while creating TDS (Duties & Taxes); its not compulsory to select
Nature Of payment, the option of any is given in new version

Prepare the following party ledgers to make payments:

a) SURENDRA SERVICES
1. Under: Sundry Creditors
2. Is TDS Applicable: Yes
3. Deductee Type: Individual/HUF Resident
4. Ignore Surcharge Exemption: No Limit

b) RAM
1. Under: Sundry Creditor
2. Is TDS Applicable: Yes
3. Deductee Type: Individual/HUF Resident
4. Ignore Surcharge Exemption: No Limit

c) Seagate Publisher
1. Under: Sundry Creditors
2. Is TDS Applicable: Yes
3. Deductee Type: Local Authority

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9. Do the following as per given instructions:

a) Surendra Services charged Rs. 35000/- as Fees for Technical Service on 01/04/2004 {Ref
no: Tech/tds/001}.

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NOTE:-

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In Above Entry the TDS is getting calculated at the time of Passing Expense Entry, so no separate
entry needs to be done
Also in previous version, The TDS calculated was displayed under Display > Statement of Accounts
> TDS outstanding, but now the entire TDS related reports are displayed under Statutory Report.
b) Paid annual Rent for Land and Building on 01/04/2004 Of Rs. 150000/- to Ram after deducting
TDS @ 15% and Education Cess @ 2% on the amount and rest paid to Ram through HDFC (Chq
no: 234797) {Ref no: Rent/tds/002}
c) An Advertising Contract for Six years made on 01/04/2004 with Seagate Publisher.

Contractors) for Rs. 300000/- (which will be paid through six equal Installments) and Rs. 50000/paid as first installment amount through cheque of HDFC
(Chq no: 234798) on 01/04/2004 after deducting TDS @ 1%, Surcharge @ 2.5% and
Education Cess @ 2% on entire amount (Rs. 300000) {Ref no: Advt/tds/003)

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Step 1:- Pass the Advertising Contract entry in Journal, for Expenses incurred

Step 2:- Deduct the TDS from the expenses booked i.e. Advertising Contract F7 (Journal Entry)
Press
Alt + S for TDS deduction

NOTE: - The bill selection details should be against reference, this will deduct 3137/- amount from
Seagate Publisher
d) Check TDS payable report through GOTDisplayStatutory ReportsTDS
Reports > Outstanding > TDS Payable. {It will display pending amount = Rs. 27872/-}
e) Paid entire TDS payable amount for the month of April on 02/04/2004 through (Chq no:
234799).

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NOTE: - Also the cheque details can be inserted, while passing entry, so these details will be there
in challan printing option.

Hint: - Use Print Preview of Cheque Printing and check TDS challan. Press Alt + Z to
Zoom/enlarge the report.
In Tally erp Statutory Report generate all the details regarding the forms and all other reports.

(Tax Collected at Source (TCS) )

Gateway of Tally > Click on the F11: F3
Set Enable TCS to Yes
Set/Alter Details Yes
Tax Assessment Number:

BLRM00123A

Income Tax Circle/Ward (TCS):

Deductor Type:
Name of person responsible:
Designation:

Wards
Others
Mr. Nair
Account Manager

Gate of Tally > Accounts Infor > Ledgers > Create

Ledger 1
Name: TCS on Timber Leaves
Under: Duties & Taxes
Type of Duty/Tax: TCS
Nature of Payment; Timber obtained under forest lease

Ledger 2
Name: Sharma Agency
Under: Sundry Debtors
Maintain balance bill? Yes
Is TCS Applicable; Yes
Deductee Type: Individual/HUF Non Resident
Ignore surcharge Exempt: Yes

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Pass the necessary entries for TCS

1) Sold Timber leaves to Sharma Agency at Rs. 5, 00,000/-, Charged the TCS on same.
2) Sharma Agency paid the amount of 5, 00,000/- plus TCS. 3) Payment done through bank for
TCS collected from Sharma Agency

(Service Tax )

Gateway of Tally > F11 > F3

Enable Service Tax Yes
Set/Alter Service Tax Details Yes

Ledger Creations
Ledger 1
Name: Sales
Under: Sales Accounts
Inventory Values are affected? Yes
Is Service Tax Applicable; Yes
Category Name: Management Consultant

Ledger 2
Name: Purchase
Under: Purchase Accounts
Inventory Values are affected? Yes
Is Service Tax Applicable; Yes
Category Name: Management Consultant

Ledger 3
Name: Nikhil

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Under: Sundry Creditors
Maintain Balance Bill by? Yes
Is Service Tax Applicable; YesExemption Details > Type of Classification > Not
Applicable

Ledger 4
Name: Kalka Traders
Under: Sundry Debtors
Maintain Balance Bill by? Yes
Is Service Tax Applicable; Yes
Exemption Details > Type of Classification > Not Applicable

Ledger 5
Name: Input Serv Tax Under: Duties & Taxes
Type of Duty/Tax? Service Tax
Category Name; Management Consultant

Ledger 6
Name: Output Serv Tax
Under: Duties & Taxes
Type of Duty/Tax? Service Tax
Category Name; Management Consultant

Gateway of Tally
Pass the necessary voucher entry for Service Tax
1) Purchase services from Nikhil Consultant (Sundry Creditor) worth Rs. 80000/- on 31/7/2009.
Pass the entry in purchase voucher with input service tax charged
2) Sold on 2/8/2009 service worth Rs. 200000/- to Kalka Traders, pass the entry in sales voucher
With Output Vat.
3) Received from Kalka the total amount of services sold with service tax on 31/8/2009 through
Cheque.
Check the details for Service Tax to be paid in
Gateway of Tally > Display > Statutory report > Service Tax report > Service Tax Payable

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4) The total service tax paid on 1/9/2009,

PRINT SERVICE TAX CHALLAN

(Budget & Control )
Create a company by name Roa and company, Use security control option, and tally vault
password, Budget Control, Cheque Printing option, Bank reconciliation statement
Using administrative user creates following ledgers:-

Ledger
Capital
Purchase
Printing
Raju
Sales
Vijay
Suresh
Rafik
Purchase returns
Salary
Drawings
Stationary
Rent
Commission
Indian Bank
Furniture
Sales Return

Group
Capital account
Purchase account
Indirect expenses
Sundry Creditor
Sales account
Sundry Creditor
Sundry Debtor
Sundry Debtor
Purchase account
Indirect expenses
Capital account
Indirect expenses
Indirect expenses
Indirect income
Bank Account
Fixed Assets
Sales Account

Budget
1000
2500
50
2000
3000
300
400
250
400
250
1000
200
150
250
125
450
25

Pass the below mention entry in data entry user:1. Roa brought cash as investment in business 1-4-2009 Rs 5000
2. Bought goods for cash on 1-4-2009 Rs 2,500
3. Paid for printing as on 1-4-2009 Rs 10
4. Sold goods, amount received by cheque 1-4-2009 Rs 150 (Chq No. 694521)
5. Received commission by cheque 1-4-2009 Rs 225 (Chq No. 754213)
6. Bought furniture for cash 2-4-2009 Rs 500
7. Purchased goods from Raju 1-5-2009 Rs 2,000
8. Bought goods from Rafik 1-5-2009 Rs 400
9. Returned goods to Raju 1-5-2009 Rs 200

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10. Sold goods to Suresh 2-5-2009 Rs 400
11. Sold goods to vijay 31-5-2009 Rs 250
12. Purchased goods for cash 31-5-2009 Rs 400
13. Recevied cash from vijay 31-5-2009 Rs 200
14. Paid cash to rafik 31-5-2009 Rs 50
15. Suresh returned goods 31-5-2009 Rs 50
16. Cash Deposited into bank 31-5-2009 Rs 500
17. Paid salary by cheque 31-5-2009 Rs 150 (Cheque No. 242560)
18. Sold goods for cash 31-5-2009 Rs 500
19. Rao withdraw cash for his personel use 31-5-2009 Rs 800
20. Paid rent by cheque 31-5-2009 Rs 50 (Cheque No. 242561)
21. Paid for stationery 1-6-2009 Rs 100
Use Tally audit feature for checking the ledgers and voucher entries

Bank Reconcilation Statement

1. Cheque deposited on 01/4/2009, Cheque No. 694521 got cleared on 1-5-2009
2. Commission received cheque deposited on 01/4/2009, Cheque no. 754213 got cleared on 2-52009.
3. Rent paid on 31/5/2009 cheque no. 242561 got cleared on 1/6/2009
4. Salary paid on 31/5/2009 cheque no. 242560 got cleared on 2/6/2009

Please calculate balance as per Bank Amount Rs. 725/- for the month of May
2009.

(MANUFACTURING JOURNAL)
Manufacturing Journal Entry: GO TO > Account Info > Voucher type > Create
Name: Manufacturing Journal
Type of Voucher: Stock Journal
Use as a Manufacturing Journal: Yes

Create Units of measurement

No (Number), Mtr (Meters)

Create Stock Group: - Material

Stock Items:(1) Cotton piece (Mtr),
(2) Buttons (No.),
(3) Thread (No.),
(4) Niddles (No.),

Create Stock Group: - Garments

Stock Items:-

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(5) Shirts (No.) (Note: - Use Bill of Material (F12) for creating Shirts requirement)

(Make Alter Components (BoM)? Yes)

Pass the necessary entries

1) Purchased cotton piece from Belmonte shop (F9 > Purchase) Invoice No. 10456
Cotton piece 5000 mtr
15/- per meter
2) Following material purchased from Shivam shop (F9 > Purchase) Invoice No. 10678
Buttons
1000 No.
0.75/- each
Thread
1000 No.
2.50/- each
Niddles
250 No.
2.50/- each
3) Produced 150 No. shirts, (Alt+F7 > Manufacturing Journal)

Also additional cost incurred for producing shirts

Wages Rs. 4000/-,
Electricity Rs. 500/Packaging Rs. 2000/Branding Rs 4500/-

(MULTIPLE PRICE LEVELS)

Press F11 > F2 > Use Multiple Price Levels
Company Price Levels: 1) Price costing
GO TO > Inventory Info > Create Stock Item
1) Shirt
2) Jeans
3) Trousers
GO TO > Inventory Info > Price List
Price Level for Shirt (Garments)
<25 200/- per shirt

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>25
<50 195/- per shirt
>50
<75 175/- per shirt
>75
<100 150/- per shirt
>100 145/- per shirt

Sales Entries
1) 45 shirts sold to Geeta designer.
2) 50 shirts sold to Hamid Garments.

(Fringe Benefit Tax )

Set/Alter FBT Details (Yes)
Company FBT Assesse Details
PAN/Income Tax Number :
Assesse Type :
Is Surcharge Applicable ?
Assesse Category :

JRS 12535
Associations of Persons
Yes
Hotel

FBT Assesse Type

FBT Categories
Creation of Ledgers for FBT
1. FBT
a) Under
:
b) Type of Duty/Tax :
c) Inventory Value. ?

Duties and Taxes

FBT
No

2. Supplier
a) Under
:
b) Maintain balance.
c) Inventory Value ?

Sundry Creditors
?
Yes
No

3. Entertainment
a) Under
:
b) Is FBT Applicable ?
1. FBT Category:

Indirect Expenses
Yes

Entertainment

Pass Necessary Voucher Entries

1) Entertainment Expense Rs. 25000/-

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2) Payment of FBT for Expenses booked (Use single payment mode, and FBT Helper for
calculating Tax)

Alt + F (FBT Helper)

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3) Print FBT ChallanPress Print Command after Payment entry of FBT done

(Payroll)
To enable payroll in Tally

Go to Gateway of Tally > F11: Features > Accounting Features

Set Maintain Payroll to Yes

You can set More than ONE Payroll / Cost Category to Yes if you wish to process payroll for multi
group of Employees
The Payroll Configuration can be enabled as shown below:

Gateway of Tally > F12: Configure > Payroll Configuration

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A Unit in Tally Payroll is similar to the Unit of Measure in Tallys Inventory module. In Payroll, Units
are used to facilitate calculation of a Pay Head value based on Production, which in turn would be
linked to Units such as Time, Work or Quantity.
Go to Gateway of Tally > Payroll Info. > Unit (Work)

In the Units Creation screen, select the Type of unit from the list. Select the Symbol from
the list. A Simple Unit in Tally is a single independent unit and has no relationship with
other units, while a Compound Unit refers to two Simple Units having an arithmetical
relationship and is not a distinct unit.

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In the case of Overtime, whose value is computed based on Overtime Hours put in by an
employee, you would need to define Hr Hours and Min Minutes as Simple Units and Hr
of 60 Min as a Compound Unit and set this unit in Overtime Pay Head.

The Attendance / Production type is used to record the attendance and production data. Based on
the component (Pay head) structure, you can define multiple attendance / production types.
Examples for attendance / production types are No. of days present or conversely, No. of days
absent and production based such as Hours worked, Number of Pieces produced.

Attendance/Production Type is associated with the Pay Head in employees Pay structure. The
variable data is entered in the Attendance voucher for the payroll period.

Attendance/Production Types may also be defined in hierarchical groups whereby Types

having a common Unit are combined under logical groups.

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The Attendance/Production Type may be Attendance/leave with pay, Leave without Pay (if
salary is to be paid based on number of days attended) Paid Leave, Unpaid Leave, Absent and
Production type which can be based on Piece Production, Overtime Hours, and so on.
Go to Gateway of Tally > Payroll Info. > Attendance/Production Types > Create

Tally allows you to set up default (common) information for employees. An Employee Group allows
you to group employees in a logical manner. The Salary structure can be defined at the Employee
Group level. Referring to this Group as a template and changing accordingly will ease building all
your employee records on it. For example, by department or function such as Production, Sales,
Administration and so on, or by designation such as Managers, Supervisors, Workers and so on.
To create Sales as an Employee Group, Go to Gateway of Tally> Payroll Info.> Employee
Groups> Create (Single Group)

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Creating Multiple Employee Groups

You can create multiple Employee Groups in this mode. Go to Gateway of Tally> Payroll Info.>
Employees> Create (under Multiple Groups)
The Multi Employee Group Creation screen displays.

The Employee Creation screen allows you to enter basic setup information that applies to the
employees. Enter General Information, Payment Details and Passport & Visa Details.

Creating Single Employee

To create an Employee under the Employee group, Back Office:

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Similarly create employees under different employee groups:The Payroll Info. allows you to set up the employee defaults and standard payroll information with
common payroll fields used for calculating earning and deductions.
Go to Gateway of Tally > Payroll Info.

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To create an Earning Pay Head, Basic Salary, under Indirect Expenses:
Go to Gateway of Tally> Payroll Info. > Pay Heads> Create

1) Basic Salary

Similarly create other pay heads:2) House Rent Allowance:Pay Head Type :
Under :
Affect Net Salary ?
Name to appear in pay slip :
Use for Gratuity ?
Calculation Type :

Earnings for Employees

Indirect Expenses
Yes
House Rent Allowance
No
As Computed Value

Calculation Period :

Months

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3) Dearness Allowance:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Use for Gratuity ?
Calculation Type :

Earnings for Employees

Indirect Expenses
Yes
Dearness Allowance
No
As Computed Value

Calculation Period :

Months

4) Conveyance:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Use for Gratuity ?
Calculation Type :
Attendance/Leave with Pay :
Leave without Pay :
Calculation Period :
Per Day Calculation Basis :

Earnings for Employees

Indirect Expenses
Yes
Conveyance
No
On Attendance
Not Applicable
Absent
Months
As per Calendar Period

5) Medical Allowance:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Use for Gratuity ?

Earnings for Employees

Indirect Expenses
Yes
Medical Allowance
No

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Calculation Type :
Attendance/Leave with Pay :
Leave without Pay :
Calculation Period :
Per Day Calculation Basis :

On Attendance
Not Applicable
Absent
Months
As per Calendar Period

6) Employee PF:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Calculation Type :

Deductions from Employees

Current Liabilities
Yes
Employee PF
As Computed Value

Calculation Period :

Months

7) Other Allowance:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Use for Gratuity ?
Calculation Type :
Calculation Period :

Earnings for Employees

Indirect Expenses
Yes
Other Allowance
No
Flat Rate
Months

8) Professional Tax:Pay Head Type :

Under :
Affect Net Salary ?
Name to appear in pay slip :
Calculation Type :
Calculation Period :

Employees Statutory Deductions

Current Liabilities
Yes
Professional Tax
As Computed Value
Months

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Salary Details is used to define a Pay Structure to an Employee or to an Employee Group to speed
up the entry of Individual Employees Pay Structure. Select the basic Pay Heads that applies most
for your employees and create as an Employee Group. However, it is not compulsory for all
employees to have the same compensation structures as of the Employee Group. If required, a Pay
Head element or its value may be added, deleted or altered at Individual Employee level.
To create Salary Details for an Employee Group, for example:

Go to Gateway of Tally> Payroll Info.> Salary Details> Create> Select Back Office
from the List of Employees/Group

Go to Gateway of Tally> Payroll Info.> Salary Details> Create> Select Employee from the List
of Employees/Group

The Similar Salary details will be copied to the Employee from the list.
Salary Details Configuration

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Go to Gateway of Tally> Payroll Info.> Salary Details> Alter > Select Employee/
Employee Group from the List of Employees/Group > F12: Configure

Allow to Override Slab Percentage Set Allow to Override Slab Percentage to No to prevent
changes made to Slab Percentages. If you set it to Yes, you can override the percentages already
defined. E.g. If you have defined Slab Rate for HRA as 40% in the Pay Head level, and if you wish
to change the Slab Rate percentage in the Salary details screen. Set Allow to Override Slab
Percentage to Yes in Salary details configuration screen and Tally will allow you to Overridde the
percentage e.g. to 50% and so on... (Metro Cities & Non Metro Cities).

Passing the payroll entries in Tally

Gateway of Tally > Payroll Voucher

Auto Fill Entries

1) Entry of no. of days staff absent in may month
Date:- 31st May Ctrl + F5:- Attendance (F5) > Attd Auto Fill (Alt+A)

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2) Entry of payroll for may month
Date:- 31st May Ctrl + F4:- Attendance > Attd Auto Fill (Alt+A)

Similarly the entry can be done by manually, so report wont get generated automatically, the data
needs to be feed manually.
Payslip can be seen

Gateway of Tally>Display Menu>Payroll Report>Statement of Payroll>Pay slip

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(Excise for Manufacturer)

Excise Duty
Excise Duty or Duty on Excise is a tax on goods manufactured or produced in India and intended
for domestic consumption i.e. sale in India.
The Excise Duty is payable at the time of production or manufacture, however, for administrative
convenience duty is paid at the time of removal of goods.
Excise Duty is an indirect tax.
The liability of payment of Excise Duty is of manufacturers or producers (which is passed on to the
ultimate consumer).

The levy and collection of duty of Excise is provided under authority of the Central Excise
Act, 1944 at the rates specified Central Excise Tariff Act, 1985.

Scope and Applicability

Excise Duty can be levied, only on the fulfilment of the below mentioned
conditions
The Duty is on Goods.

The Goods must be excisable.

The goods must be manufactured or produced.
Manufacture and Production must be in India.

Manufacturer
Manufacturer is a person who actually manufactures or produces excisable goods, i.e. one that
actually brings into existence new and identifiable product.

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Excisable Goods

Excisable Goods means goods specified in the schedule to the Central Excise Tariff Act, 1985 as
being subject to a duty of Excise.

The Basic requirements to be satisfied are :

Goods must be movable.
Goods must be marketable i.e. the goods must be such that it is known in the market and is
capable of being bought or sold.

Valuation Methods

Value of the excisable goods has to be necessarily determined to levy the duty on the goods.
Under the Central Excise Act, 1944, the following methods of valuation of goods are considered
for the assessment of Duty

Valuation Methods > 1. Ad valorem/ Transaction Value:

Transaction value means the value of goods which are sold at the time and place of removal and
includes in addition to the amount charged as price, any amount that the buyer is liable to pay to,
including any amount charged for, or to make provision for, advertising or publicity, marketing and
selling, organization expenses, storage, outward handling, servicing, warranty, commission or any
other matter.

Valuation Methods > 2. Ad Quantum:

In case of Ad Quantum the duty is payable on the basis of certain unit Like Weight, Length,
volume etc.
For Example: Duty on cigarette is payable on the basis of length of the cigarette, duty on Sugar is
based on per Kg.

Valuation Methods > 3. Value determined on the basis of M R P:

Retail sale price means the maximum price at which the excisable goods in packaged form may
be sold to the ultimate consumer and includes all taxes local or otherwise, freight, transport
charges, commission payable to dealers, and all charges towards advertisement, delivery, packing,
forwarding and the like, as the case may be, and the price is the sole consideration for such sale.

Salient Features of Excise in Tally.ERP

Simple and user-friendly
Quick and easy to set up and use
Allows Multiple Excise Registration (Manufacturer & Dealer) in Single Company
Create Tariff (HSN) / Commodity Code
Flexibility to have separate Unit of Measures for recording transactions and excise reporting
Item wise Valuation Methods (Valorem, Quantum, MRP)
Maintain Rule 11 Excise Invoice
Can apportion Expense / Income ledger value to calculate Assessable Value
Item wise Duty calculation for different Valuation Methods in single invoice
Generate Rule 11 invoice for Purchase Returns
Record Exempt, Export & Special Rate transactions

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Avail Full / Partial CENVAT Credit on Inputs and Capital Goods/ Service Tax towards Duty
payable
Reversal of CENVAT Credit
Print G.A.R. -7 Challan
Maintain Invoice Register
Maintain RG -1 register
Generate CENVAT Credit Register
Generate ER-1 & ER-3 returns
Maintain PLA Register

Excise Computation Report

Create a Company for the year 2009,

Enabling Excise in Tally.ERP

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Also Enable the VAT details from F11 Statutory & Taxation

Gateway of Tally:- Ledger Creation (Gateway of Tally > Account Info > Ledger > Create)

The Ledger Created is an Customer Ledger

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2. Supplier Ledger
Name :
Under :
Maintain balance. ? Yes

Swastik Water Supplier

Sundry Creditors

Mailing Details
Name :
Address :
State :

Swastik Water Supplier

No. 34 Anna Nagar Mumbai
Maharashtra

Tax Information
PAN/IT No. :
AEW45TGFDF
Set/Alter VAT Details ?
Yes
TIN/Sales Tax No. :
44335543678
Set/Alter Excise Details ?
Yes
Excise Registration (ECC) No.
AESDE3210NXM001
Date of Registration
1-Apr-2009
Range
National Park
Division
Mumbai I
Commissionerate
Mumbai II
Default Nature of Purchase Not Applicable
Nature of Removal
Domestic

3. Sales Ledger
Name :
Under :
Inventory Value.. ?

Sales @ 12.5%
Sales Accounts
Yes

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Used in VAT Returns ?
VAT/Tax Class Sales @
Use for Assessable Calc.. ? Yes
Apportion for ?
Method of Apportion :

Yes
12.5%
Yes
Based on Value

4. Purchase Ledger
Name :
Under :
Inventory Value.. ?
Yes
Used in VAT Returns ?
VAT/Tax Class Purchase @ 12.5%
Use for Assessable Calc.. ? Yes
Apportion for ?
Method of Apportion :

Purchase of Raw Material

Purchase Accounts
Yes
Yes
Based on Value

5. Input VAT Ledger

Name :
Under :
Type of Duty/Tax :
VAT/Tax Class :
Percentage of Calc ?
Method of Calc :
Rounding Method :
Rounding Limit :

Input Vat @ 4%
Duties & Taxes
VAT
Input Vat @ 4%
4%
On VAT Rate
Normal Rounding
0

6. Output VAT Ledger

Name :
Output Vat @ 12.5%
Under :
Duties & Taxes
Type of Duty/Tax :
VAT
VAT/Tax Class :
Output Vat @ 12.5%
Percentage of Calc ?
12.5%
Method of Calc :
On VAT Rate
Rounding Method : Not Applicable

7. Basic Excise Duty Ledger

Name :
Basic Excise Duty @ 10%
Under :
Duties & Taxes
Type of Duty/Tax :
Excise
Excise Accountg Code
Duty Head :
Basic Excise Duty
Percentage of Calc ?
10%
Method of Calc :
On Assessable Value

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Rounding Method :

Not Applicable

8. Education Cess Ledger

Name :
Education Cess @ 2%
Under :
Duties & Taxes
Type of Duty/Tax :
Excise
Excise Accountg Code
Duty Head :
Education Cess
Percentage of Calc ?
2%
Method of Calc :
On Total Excise Duty
Rounding Method : Not Applicable

9. Seconday & Higher Education Cess Ledger

Name :
Secondary & Higher Education (SHE) Cess
Under :
Duties & Taxes
Type of Duty/Tax :
Excise
Excise Accountg Code
Duty Head :
Secondary Education Cess
Percentage of Calc ?
1%
Method of Calc :
On Total Excise Duty

Rounding Method : Not Applicable

10. Basic Excise Duty CENVAT Ledger
Name :
Basic Excise Duty-CENVAT @10%
Under :
Duties & Taxes
Type of Duty/Tax :
CENVAT
Excise Accountg Code
Duty Head :
Basic Excise Duty
Percentage of Calc ?
10%
Method of Calc :
On Assessable Value
Rounding Method : Not Applicable

11. Education Cess CENVAT Ledger

Name :
Education Cess-CENVAT @ 2%
Under :
Duties & Taxes
Type of Duty/Tax :
CENVAT
Excise Accountg Code
Duty Head :
Education Cess
Percentage of Calc ?
2%
Method of Calc :
On Total Excise Duty
Rounding Method : Not Applicable

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12. Secondary & Higher Education Cess CENVAT Ledger
Name :
Secondary & Higher Education (SHE)-CENVAT
Under :
Duties & Taxes
Type of Duty/Tax :
CENVAT
Excise Accountg Code
Duty Head :
Secondary Education Cess
Percentage of Calc ?
1%
Method of Calc :
On Total Excise Duty
Rounding Method : Not Applicable

13. Expense Ledger

Name :
Packing Charge
Under :
Indirect Expenses
Use for Assessable Val. ? Yes
Apportion for ?
Excise & VAT
Method of Apportion :
Based on Value

Gateway of Tally > Account Info > Voucher Types Creating Excise
Voucher Types
1. Excise Purchase Voucher Type
Name :
Excise - Purchase
Type of Voucher :
Purchase
Rest all as it is
Use for Excise ?
Yes
Default Excise Unit : Excise Manufacturer

2. Sales Voucher Type

Name :
Excise - Sales
Type of Voucher :
Sales
Rest all as it is
Use for Excise ?
Yes
Default Excise Unit : Excise Manufacturer

3. Debit Note Voucher Type

Name :
Excise Debit Note
Type of Voucher :
Debit Note
Rest all as it is
Use for Excise ?
Yes
Default Excise Unit : Excise Manufacturer

4. Manufacturing Journal Voucher:- Manufacturing Journal is used to account

>> the issue of raw materials to production floor and

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>> for the receipt of finished goods.
Name :
Manufacturing Journal
Type of Voucher :
Stock Journal
Rest all as it is
Use as a Manufacturing Journal ? Yes

Creating Tariff Classification

Each and every goods manufactured or produced have to be classified for finding out the rate of
duty applicable. Accordingly, Central Excise Tariff Act 1985 classifies all the goods under
91chapters and specific code is assigned to each item.
This code is called Tariff Classification code, which consists of 8 digits.
First 4 digits represent Chapter and heading a
Next 2 digit represents sub-heading and
The last 2 digit represents sub-sub heading.

HSN CODE
The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature
popularly known as Harmonised System of Nomenclature (HSN),
is an internationally standardized system of names and
numbers for classifying traded products developed and maintained by the World Customs
Organization.

Gateway of Tally:: Inventory Info > Tariff/VAT Commodity

1. Plastic Bottles
Name :
Used for :
HSN Code :

Plastic Bottles
Excise
392330102. Plastic Bottle Caps

2. Plastic Bottles Caps

Name :
Plastic Bottle Caps
Used for :
Excise
HSN Code : 39235010

3. Water
Name :
Used for :
HSN Code :

Water
Excise
22011010

4. Linear Low Density Polyethylene (LLDPE)

Name :
Used for :
HSN Code :

Linear Low Density Polyethylene (LLDPE)

Excise
39110010

Gateway of Tally:: Inventory Info > Stock Items

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Important Note:- Press F12 (Configuration) In Stock Items Mode and Enable the feature Use
Alternate Units for Stock Items YES

1. Pet Bottles 1 Ltr

Pet Bottles 1 Ltr
Primary

Name :
Under :
Units :
Alternate Units :
Where :
Tariff Classification :

U
Kg
1 Kg = 100 U
Plastic Bottles

Set/Alter Excise Details ? Yes

VAT Details
Commodity :
Rate of VAT (%) :

Not Applicable
4

2. Water Container 20 Ltrs

Name
Under
Units
Alternate Units
Where
Tariff Classification

: Water Container 20 Ltrs

: Primary
:U
: Kg
: 1 Kg = 20 U
: Plastic Bottles

Set/Alter Excise Details

? Yes

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VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
4

3. Bottle Caps
Name:
Under:
Units:
Alternate Units:
Where:
Tariff Classification:
Set/Alter Excise Details?

Bottle Caps
Primary
U
Kg
1 Kg = 500 U
Plastic Bottle Caps
Yes

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VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
4

4. Low Density Polyethylene

Name:
Under:
Units:
Alternate Units:
Where:
Tariff Classification:

Low Density Polyethylene

Primary
U
Kg
1 Kg = 1000 U
Linear Low Density Polyethylene (LLDPE)

Set/Alter Excise Details?

Yes

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VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
4

5. Natural Water
Name:
Under:
Units:
Alternate Units:
Tariff Classification:

Natural Water
Primary
L
Not Applicable
Water

Set/Alter Excise Details?

Yes

NOTE: - Stock Item Type Principal Input

VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
0

Creating Stock Item - Finished Goods

Important Note: - Press F12 (Configuration) In Stock Items Mode and Enable the feature

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Allow Component list details (Bill of Material) YES
1. Aqua Pure 1 Ltr
Name:
Under:
Units:
Alternate Units:
Where:

Aqua Pure 1 Ltr

Primary
L
Box
1 Box = 24 L

Alter Components (BoM)? Yes

Tariff Classification :
Set/Alter Excise Details?

Water
Yes

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NOTE: - Stock Item Type Finished Goods

VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
12.5%

2. Aqua Mini 200 ml

Name:
Under:
Units:
Alternate Units:
Where:

Aqua Mini 200 ml

Primary
U
L
1L=5U

Alter Components (BoM)? Yes

Tariff Classification:

Linear Low Density Polyethylene (LLDPE)

Set/Alter Excise Details?

Yes

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NOTE:- Stock Item Type Finished Goods

VAT Details
Commodity:

Not Applicable

Rate of VAT (%):

12.5%

3. Aqua King 20 Ltr

Name:
Under:
Units:
Alternate Units:
Where:

Aqua King 20 Ltr

Primary
U
L
20 L = 1 U

Alter Components (BoM)? Yes

Tariff Classification:

Water

Set/Alter Excise Details?

Yes

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NOTE:- Stock Item Type Finished Goods

VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
12.5%

4. Aqua Ease 20 Ltr

Name:
Under:
Units:
Alternate Units:
Where:

Aqua Ease 20 Ltr

Primary
U
L
1 L = 10 U

Alter Components (BoM)? Yes

Tariff Classification:

Water

Set/Alter Excise Details?

Yes

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NOTE: - Stock Item Type Finished Goods

VAT Details
Commodity:
Rate of VAT (%):

Not Applicable
12.5%

Transactions
Creating a Excise Purchase Voucher Not Availing CENVAT Credit

When the CENVAT Credit is not availed

The Duty Legers selected wont display the ledger balance and duty amount will be apportioned

to the Stock Item cost.

Gateway of Tally > Stock Summary

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Gateway of Tally > Display > Account Books > Ledger

Basic Excise Duty @ 10%
Education Cess @ 2%
Secondary and Higher Education (SHE) Cess
All the above ledger, the details will be blank.

Creating a Excise Purchase Voucher Availing CENVAT Credit When the

CENVAT Credit is availed
The Duty Ledgers selected will display the ledger balance and duty amount will not be
apportioned to the Stock Item Rate.

When the CENVAT Credit is availed

In Stock Vouchers report stock item rate is displayed as the actual purchase rate.
In this case the duty amount is not apportioned to the Stock item.
Check the Stock in Stock summary the Rate will be same as the amount product Purchased.

Creating a Manufacturing Voucher

Manufacturing of Packed Drinking Water being a Process Industry, Manufacturing Journal is used
to account the issue of raw materials to production floor and for the receipt of finished goods.
In case of discrete industries, Stock Journal can be used to account the issue of Raw materials to
production floor and for the receipt of finished goods

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To Manufacture > AquaPure - 1Ltr using Manufacturing Journal AquaPure 1 Ltr of
2,00,000 L

To Manufacture 10,000 U > AquaMini - 200 ml using Manufacturing Journal

To Manufacture 10,000 U > AquaKing 20 Ltr using Manufacturing Journal

To Manufacture 1000 U > AquaEase - 20Ltr using Manufacturing Journal

Creating a Excise Sales Voucher_ Rule 11 Invoice

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Note: - Give the print command to the sales entry, and enable the print preview option, so
Excise Invoice will be printed (Changes to be done in print configuration)

Rule 11 Invoice for Stock Items Falling Under Different Valuation Type

Rule 11 Invoice for Stock Items with Expenses

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Creating a Debit Note (Purchase Returns) _ Rule 11 invoice

As per Rule 11 of the Central Excise (No.2) Rules, 2001 provides that no excisable goods shall be
removed from a factory or a warehouse except under an invoice signed by the owner of the factory
or his authorised agent.
The invoice shall be serially numbered and shall contain the registration number, description,
classification, time and date of removal, rate of duty, quantity and value, of goods and the duty
payable thereon.
Invoicing under Rule 11 of the Central Excise (No.2) Rules, 2001 is applicable even for Purchase
Returns.
In case of purchase returns goods are removed from factory or warehouse to return the goods to
the supplier.

F11 > Features (Enabling following features)

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Creating a Journal Voucher_CENVAT Credit Adjustment

CENVAT Credit available to a Unit will be adjusted towards the Duty Payable to arrive at the Net
Duty Payable to the Government.
In Tally.ERP to record the adjustment, CENVAT Duty and Excise Duty accounts are Credited and
Debited, respectively to nullify their balances and the net balance in the Excise Duty ledgers will be
paid to the Government.

CENVAT Credit Adjustment entry is recorded at the end of Every month or Quarter
depending on the type of Manufacturer.

Gateway of Tally > Accounting Vouchers > F7 (Journal)

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Creating a Payment Voucher_GAR 7 Payment

Printing G.A.R.7 Challan

Note:- Give the print command to the Payment Voucher of Duties

Reports
Excise Computation

Daily Stock Register

PLA Register
Form ER 1
Form ER 2
CENVAT Credit Register

Other Reports
Gateway of Tally > Display > Statutory Report > Excise Report
Daily Stock Register
Daily Stock Register is a record of stock maintained on daily basis.
A daily stock has to be maintained by every assessee.

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This report contains details about Description of goods manufactured/produced, opening balance,
Quantity manufactured or produced, Total quantity, Quantity removed, Assessable value, Amount
of duty payable and details regarding amount of Duty actually paid.

PLA Register
Personal Ledger Account (PLA) is an current account through which Assessee pays the Duty to
the Government.
The PLA register is credited when the duty is liable to pay and when the Duty is discharged (by
CENVAT Credit /Payment) the PLA register will be debited.
The Duty Payable if any will be displayed as Balance. PLA and CENVAT Credit should be used
only for payment of excise duty and not for any other payments like rent, fines, penalties etc.
Personal Ledger Account (PLA) is an current account through which Assessee pays the Duty to the
Government.
The PLA register is credited when the duty is liable to pay and when the Duty is discharged (by
CENVAT Credit /Payment) the PLA register will be debited.
The Duty Payable if any will be displayed as Balance. PLA and CENVAT Credit should be used
only for payment of excise duty and not for any other payments like rent, fines, penalties etc.

Form ER 1
Form ER 1 is a monthly return for production, removal of Goods, other relevant particulars and
CENVAT Credit.
All the Excise Manufacturing (Regular/Large Tax payer) Units should file returns in Form ER 1.

CENVAT Credit Availed

CENVAT Credit Availed report displays

the details of CENVAT credit availed of Principal Input or Capital Goods.

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