1.

Accounting basically involves identification, anasysis, recording, classifying,

summarising, interpreting and communicating information regarding business transactions,
interested persons.

Its features are:

1. Identification and recording of business transactions and events.

2. Summarisation and interpretation of accounting information.

3. Communicating the information to the interested persons such as investors, creditors, owners,
government, research scholars, tax authorities etc.

Accounting can be done in two ways: 1. Manual Accounting - Done by clerks or accountants
with a lot of books and registers. (Without using computers) 2. Computerised Accounting -
Doing the accounting work with the help of computers (Accounting softwares such as Tally,
Peech Tree etc)

Transactions are posted in Tally software so that we get processed accounting information
instantly in the form of statements, graphs, ratios etc.

Tally is an accounts and inventory management software which is having many other features too. With
the latest version of this software Tally9 you can
1. do all basic accounting functions,
2. Manage your store and items,
3. do the job costing,
4. manage payroll,
5. get many mis reports which are useful for day today functions,
6. file your tax returns like prepare balance sheet, profit and loss statement, VAT forms, TDS, returns,
Service tax returns, e-TDS filing, Excise forms, FBT reports and forms,
7. maintain budgets, scenarios,
8. calculate interest on pending amount
9. manage data over different locations and synchronize it and many more other features.

In fact in todays environment you just need a computer and Tally to manage your business and you to
run it.

Tally.ERP 9 –the latest evolution of the Tally series took 3 years and the dedicated efforts of 200 developers to create. It
has grown from a basic accounting package into a simple-yet-sophisticated business management software product.
Comprehensive capabilities allow Tally.ERP 9 to meet the needs of small to large businesses with dispersed operations.
And traditional functions of a business are handled as capably as the more advanced.
Comparing Tally with an ERP is the first mistake.

Tally is like a software you buy from a super market or

grocery shop. Read the instructions and use. Nothing can be
done by a user. They way tally gives the way we should go.

ERP is a sofware which would suit all the management and

financial reports custamized to the companys needs. A full
completed software in all aspects.

As said:-
differance between a Readymade Dress and Tailor made dress.
 This question is just like some one is asking the
difference between cycle and motor cycle

The differences would be

Tally is a tool to record your accounting details, not an

ERP package.
Tally is not integrated with any other applications.
Tally is not modularised like GL, purchasing , ap, ar,
order management etc as any erp application.
Tally has limited reporting capabilities.
Tally is not a web based application.

There is a Difference between Tally and ERP. ERP means

Enterprise resource planning. But Tally.ERP9 means extended
reach planning that means with Tally.ERP 9 we can access
data from any ware in the world.
But now we can see any take printout only. In coming
releases complete accessing will come.
Tally generate Excise for manufacture & dealers
Vat, Cst, Servie Tax, Tds, Tcs, FBT reports except form 16
That form 16 also will come in shortly

Synchronize data from different locations on a daily basis.

Automation back-up everyday.

Sales order, receipt note, sales tracking,

Purchase order, receipt note, purchase tracking also there

Comparing to price wise erp is around laks

But Tally.erp9 bellow 50,000 only
It is generate around 300 reports
We can customize tally also.

Tally is suitable for small scale industries whereas SAP

is suitable for medium & large scale industries.

2.After making any transaction, we can easily make any

changes in Tally but thats not happen in SAP/ERP.
3.Tally requires very low installation cost where as ERP
require lot of.

4.Becasue of integration, we can see the current position

of our buiness branches sitting at head office, thats not
in tally.

5.ERP has a systematic procedure to complete a transaction

where that is not in tally.
 Tally is suitable for small scale industries whereas SAP
is suitable for medium & large scale industries.

2.After making any transaction, we can easily make any

changes in Tally but thats not happen in SAP/ERP.

3.Tally requires very low installation cost where as ERP

require lot of.

4.Becasue of integration, we can see the current position

of our buiness branches sitting at head office, thats not
in tally.

5.ERP has a systematic procedure to complete a transaction

where that is not in tally.

 Tally is one of the accounting software which are highly used in the world.
ERP means a software which are maintained database of the company.

Tally is a tool to record your accounting details,

not an ERP package.
• Tally is not integrated with any other applications.
• Tally is not modularized like GL, Purchasing , ap,
ar, order management etc as any ERP application.
• Tally has limited reporting capabilities.
• Tally is not a web based application. So it need
not be installed in each of the location separately.
• You don't need to synchronize data from different
locations on a daily basis.
• Tally is a Standalone Application
• Tally is not a robotics and integrated application
• In tally you cannot make TDS Return.
• You can schedule automation back-up every day. You
don't need any separate human intervention.
•

Tally is a Readymade Dress , where as NAV ERP is Tailor

made Dress

Tally is like a software you buy from a super market or

grocery shop. Read the instructions and use. Nothing can be
done by a user. They way tally gives the way we should go.

ERP is a software which would suit all the management and

financial reports customized to the companies needs. A full
completed software in all aspects.
 

Introduction
Tally has always, through the course of its history, delivered tremendous and increasing
value to the customer and the entire ecosystem. With the release of Tally.ERP 9, this value
has increased at least by an order of magnitude. In this write-up, we will be concentrating
mainly on the factors that contribute to this increased value. Here and there, however, we
will be making a reference to what already had existed and also to what will be available in
the short term (counted in weeks and months).
Also, despite the fact that there is an additional value proposition for our multi location
users, we will be concentrating on the huge benefit to single user, single-site customers as
they form the bulk of our existing user base.
In this write-up, we will primarily try to discover the benefits, whether to the organization or
an owner – particularly since, in a small business situation, the owner is identified strongly
with the organization - through different use-case scenarios.
Also, there will be no conscious attempt to describe or explain the features themselves in
this write-up.
This document describes what is currently available (as on the date of first availability of
Tally.ERP 9). In a few places, immediately forthcoming scenarios have been described.
These places are marked with an asterisk (*)

New paradigms in Tally.ERP 9

The availability of remote access, other remote capabilities and other facilities which come
with Tally.Net have brought about this possibility of a paradigm shift in the way customers
use Tally. Let us see some of the ways in which customers may use and benefit from
Tally.ERP 9.

Remote Access
Scenarios of use
By Owner
I have a factory (factory-cum-office) which is some distance away from where I stay. I now
have the ability to look at what happened yesterday (sales, purchases, collections,
expenses, production etc.) before I even have my breakfast and based on this I can now
give instructions for the day. This means that the office now starts functioning effectively
and does not havethe office.

In the days before cell phones, we used to go to a supplier or a customer’s office and in
case of a need, could use his office phone to complete urgent business. I can now use
anyone’s Tally like that-- to access my data residing at my office.

Soon, I can simply go to my vendor’s office, negotiate a purchase and using his computer
and Tally, log on to my data, with my license (username and password),* enter a purchase
order and print it out on his printer! .
My son runs an independent company and I have remote access on it. This is perfect for
keeping an eye on things without any embarrassment between me and my son.

I keep some of my sensitive and personal accounts at a computer at home and I operate on
the data remotely, even from office.
I take a long time to travel to work and I am able to work from my car using my lap top,
which has an internet data card. I discovered that I don’t even need a separate license for
operating remotely from my lap top
Very useful when I go out on my collections -- I can even take a print-out of my entire
customer ledger from the customer’s own machine.
*When I am on vacation, I don’t like to be troubled. I will be now able to SMS queries to my
copy of Tally.ERP 9 and get the answers. I would prefer to do this, rather than to have a
two-way conversation with my accountant!

By Others in the company

*I have sales people traveling to various towns and booking orders. They can now update
their orders from the customer’s place itself or go to a cyber café and do it.
My sales people do one better than that. I have bought each one of then a USB memory
device costing a few hundred rupees. An educational version of Tally runs from that. Even if
our customers don’t have Tally, my sales person simply borrows the use of the customer’s
machine and he is connected to our Tally .He can now look at the customer’s outstandings,
order positions etc.

Access by the Chartered Accountant

I am an engineer and I don’t want to be bothered about all these statutory conditions and
formalities. I also would like my peace mind. I don’t want to be worried and wondering
about the possibility of some criminal case slapped on me – simply because I did not know.
Ideally, I would like some CA to ensure that my accounts, various
aspects of taxation and the way I have recorded my transactions etc. are OK. Today, thanks
to the special access my auditor can have to my information, it becomes practicable and
affordable for him, and therefore for me to ensure that my company is doing everything
right.
My auditor comes every week and since I have a small office, it is a bit of a disturbance to
me. I would prefer that he does most of the work at his office. The remote capabilities of
Tally.ERP 9should help greatly in this.

Access by others/ other stake holders

Access by Partner
I am a ‘sleeping partner’ in a company. I need to know what is going on without even my
having to ask for various reports, etc. This is a great way to do it. (In fact, this may be a
powerful reason for influence of purchase decisions in countries where a ‘local partner’ is
mandatory).
While I am running my own company, I mentor several other companies. The kind of access
that Tally.ERP 9 provides is just ideal for my purposes.

Access by Tally Service Provider

I now have continuous visibility to the status of the problems and issues I have raised
through the support center) and I can even grant special one-time access to my Tally
service provider to my data so that he will be able to solve the problem sitting in his office,
thus saving me time and money. I am also thinking of discussing with my chartered
accountant and make sure that he also gets visibility on my problems. This is possible with
Tally.ERP 9.

Access by Customers/ Vendors etc.

I am now planning to give access to my major customers and suppliers for their accounts.
Till now, I could not do it securely. Now, since I can control what TDLs must run at a
customer/vendor’s login, and since the TDLs would physically reside on my machine, I can
really do this.
Maybe there will come a time, when my banker will know my financial position automatically
and give me increased working capital limits (just kidding!)

Data Security
Tally has always been one of the most secure business applications as far as data is
concerned. In most systems, a person who knows the database password (typically an IT
administrator, not a business owner) can play havoc with the system. Tally’s data can be
seen only through the application and therefore the application security also controls data
security. If you decide to TallyVault your data, because of the sophisticated encryption
algorithms, the data can be absolutely guaranteed to be non-recoverable without a valid
username and password.
All this is possible while keeping the data portable (one of the unique strengths of Tally
which contributes to its phenomenal supportability).
*In Tally.ERP 9, you can ensure that a particular company will be open-able only by
specified serial numbers. You may want to have the luxury of your CA, consultant or partner
look at the data but you want to prevent this being opened by any one else (say some one
who can gain a competitive advantage)
You can even specify that a company is not openable in educational mode.
Now for something that will bring joy to developers and customers alike:
*You can specify the sets of TDLs that MUST run on a specified serial number. You can then
no longer bypass the external TDL imposed controls etc., merely by disabling TDLs in the
Tally.ini file.
Even security (examples: ledger level security for giving visibility to customers and
suppliers, or voucher level security, which is currently not available in Tally) can be
implemented and enforced through very simple TDLs.

Data Security in remote operations

The request-response system used by Tally.ERP 9 is extremely secure. Since both the
receiver and the sender of information act as clients and not server, it is virtually impossible
to hack. (Only servers can be hacked)
The data resides on the customer’s machine only and not on the viewer’s.
Access control is completely in the hands of the customer. The customer can even decide
not to connect a company for remote access even though it has remote users.

Help and Support

On-lineHelp*
Apart from the help available from the customer’s local machine itself, links are available
which will give access to huge information on the Tally website.

Support Center
The customer can now report issues to his favorite Tally Service Provider or to Tally itself,
and follow the status of the same. He can mark issues as closed or reopen issues. He can do
this from his copy of Tally itself. He has complete visibility into all his past, present issues
that are open or closed.
Tally.ERP 9 is probably the only product in the world that features:
• Complete three-way visibility for the user, support provider and the software
developer.
• Issues are entered and the visibility got from the product itself.
• Customer has visibility from the product even to issues that he has raised over the
phone.
• Customer has complete control over which issues are getting closed

License Management
Single Site
Now, licensing is a simple two-step process. Once the user (or the seller on behalf of the
user) enters the serial number and activation key, the user receives a license key in his
email. This is used by him to unlock Tally. This gives him a permanent license.
Now the customer can manage his licensing himself, all from within Tally (he can also do
this using a browser). He can surrender his license and activate in another location without
needing to approach Tally.

Getting Suitable people to work on Tally*

Posting job requirements and looking at CVs
Tally.ERP 9 will allow potential employers to post their requirements for candidates from
within the product and obtain responses. They will also be able to see the resumes of
candidates who know Tally and contact them.

Recruitment tests
In the past, we have relied on the TCP certification as proof that a candidate knows Tally. To
hold TCP certification exams in a fool-proof way is a huge task and most of the partners are
not and will never be equipped for that. Therefore, the use of TCP as proof of the
competency of the candidate has lost its luster.
Also the problem is that almost every candidate claims to know Tally. To evaluate the
extent of knowledge is a huge problem for the employer.
Now, the employer can run a recruitment test for a potential candidate from his Tally.ERP 9,
during a face-to-face interview and immediately know the results.

Other new Features

Central Excise
Tally already has features of excise for traders. Excise for manufacturers has been one of
the most eagerly-awaited features in Tally.ERP 9. It is there now in a comprehensive and
simple fashion.
Tally.ERP 9 handles, for instance:
• Multiple types of excise duties (Basic, Special, Education cess etc.)
• Multiple ECC numbers for a single company (A company can have multiple
registered excise godowns and can also trade in excisable goods)
• Multiple valuation methods (like Ad valorem, Ad valorem/transaction value, value
based on MRP, Ad quantum etc.)- all of these, if required, in the same invoice!
 • Flexibility to have different unit of measures for excise reporting and recording
transactions.
• Availment of CENVAT credit
• Payments to central Excise
• Keeping statutory records and reporting and returns.
• Sequential numbering for excise invoices even across different voucher types – for
example across invoices and debit notes – (as per excise rule 11)
• All this and much more…

TDS
The TDS facilities in Tally.ERP 9 cover the entire gamut of TDS related processes from
creation of a TDS liability to discharge and creating the e-file for the same.
The TDS feature has been completely re-written in Tally.ERP 9. The new features that have
been introduced include:
• Capability to deduct TDS and also record the liability (due to purchase or availment
of services) in a single voucher.
• You may also choose to create the TDS liability on a periodic basis.
• Now, separate ledgers need not be created for TDS and non TDS related payments.
The same ledger can be used for both.
• Additional features like NRI payments (under Sec 195) are facilitated.

Payroll Statutory Reports

Almost all the PF, ESI and Professional Tax forms and reports that are needed to be
submitted to the authorities are now available in Tally.ERP 9. This was another eagerly
awaited feature in Tally.ERP 9.

NewLook and Feel

Tally.ERP 9 now has nearly 30% more screen real estate to display information. This is done
through a ‘hide-on-demand’ info panel (bottom panel).
This extremely informative info panel tells the user not only the version but also the latest
version that is available from Tally; TDLs that are running, edition particulars (Auditors’,
Gold or Silver) and some configuration details (which port the server is listening to, etc.).
Clicking on the logo takes you to the Tally website. Clicking on the latest version takes you
to the ‘downloads page’, etc.
Most of the keys that can be used in a given situation are available upfront as buttons also.
Example: during display of daybook, Alt-D, Alt-A, Alt-2 etc. are available as buttons.
Now the customer can see up to four instances of Tally (4 companies) for comparison on a single screen by resizing
windows.
In most reports, you can select multiple lines (by pressing space bar or clicking on the line) and do some operations
– example: multiple line removal (with Alt + R), multiple voucher delete (with Alt+D) from daybook.

Conclusion
For either a new potential customer or an existing customer on an earlier version, it is clear from the above that
Tally.ERP 9 is a ‘Must have’ product.