Project Report

On
“TALLY”
Submitted To

BARKATULLAH VISHWAVIDHYALAYA, BHOPAL (M.P)

IN PARTIAL FULFILLMENT
OF THE DEGREE OF
Bachelor of COMMERCE
Session – 2019-2020
Submitted By

YASH PHATE

180090676

R180090280012
Under the
Guidance of

Ms. YOGITA SONI MR. ABHISHEK SHARMA

(Department of Commerce) (External Guide)
 GOVT. ARTS & COMMERCE (NAVEEN)
COLLEGE, BHOPAL

DEPARTMENT OF COMMERCE

ACKNOWLEDGEMENT

I convey my sincere gratitude to Ms. Yogita Soni (Department of

Commerce) for giving me the opportunity to prepare my project work
on “TALLY”. I express my sincere thanks to all the staff member of
Commerce Department.

I express my sincere obligation and thanks to the principal Mr. Rajiv

Choube and all Faculties of the Commerce Department for providing
me with guidance help motivation and valuable advice at every stage
for completing the project work successfully.

Signature -

Mr. Yash Phate

Roll No.: 180090676

Enrollment No.: R180090280012

 GOVT. ARTS & COMMERCE (NAVEEN)
COLLEGE, BHOPAL

DEPARTMENT OF COMMERCE

DECLARATION

I do hereby declare that the project work entitled “TALLY” submitted by

me for the partial fulfillment of the requirement for the award of
Bachelor of Commerce (C.A.), is an authentic work completed by me.
The report being submitted has not been submitted earlier for the
award of any degree or diploma to any Institute or University.

Signature -

Mr. Yash Phate

Roll No.: 180090676

Enrollment No.: R180090280012

 GOVT. ARTS & COMMERCE (NAVEEN)
COLLEGE, BHOPAL

DEPARTMENT OF COMMERCE

CERTIFICATION OF ORIGINALITY

This is to certify that the project report entitled “TALLY” Submitted to

Barkatullah University, Bhopal in partial fulfillment of the requirement
for the award of the degree of Bachelor of Commerce (C.A.), is an
original work carried out by Mr. Yash Phate, Roll No.: 180090676,
Enrollment No: R180090280012.

The matter embodied in this project is a genuine work done by

the student and has not been submitted whether to this University or
to any other University / Institute for the fulfillment of the
requirement of any course of study.

Ms. Yogita Soni

Commerce Department
PROJECT REPORT ON TALLY
Table of Contents
1. Introduction
2. Salient Features
3. Functional Features
4. Technology Advantages
5. Getting Started with Tally ERP-9
 Creating a Company
 Books & Financial Year Details
 Security Control
 Base Currency Information
 Select a Company
 Shut a Company
 Alter Company Details
6. Introduction to Tally ERP-9 Features & Configuration
 Introduction
 Features
 Accounting Features
 Inventory Features
 Statutory & Taxation Features
 TSS Features
 Add on Features
 Data Management & Security Features
 Payroll Features
 Configuration
7. Maintaining Chart of Accounts in Tally ERP-9
 Introduction
 Ledgers & Groups
 Ledger Creation
 Group Creation
8. Accounting Vouchers
 Introduction
 Types of Voucher
 Voucher Number
 References
 Date of Voucher
 Effective Date
 Particulars
 Narration
9. Maintaining Inventory in Tally ERP-9
 Introduction
 Stock Item
 Units of Measure
 Stock Group
 Godowns
10. Inventory Vouchers
 Introduction
 Voucher Configuration
11. Conclusion
Introduction to Tally.ERP 9 Accounting Software
Tally.ERP 9 is one of the most widely used financial software. Tally.ERP 9 reports can help a
business owner make informed decisions to increase efficiency, reduce costs, and organize
business operations.
With Tally.ERP 9, accurate, up-to-date business information is available at your fingertips
anytime. It provides a Comprehensive solution for the accounting and inventory needs of a
business.
It provides the capability to generate fully accurate tax returns in a matter of minutes and is
also capable of extracting, interpreting and presenting financial data.
Tally.ERP 9 is the world’s 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. 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 combined with enhanced MIS, Multilingual, Data
Synchronization and Remote capabilities help you simplify all your business processes easily
and cost-effectively.

Salient Features of Tally.ERP 9

 A leading accounting package: The first version of Tally was released in 1988 and,
through continuous development, is now recognized as one of the leading accounting
packages across the world, with over a quarter million customers. Tally’s market share is
more than 90%.
 No accounting codes: Unlike other computerized accounting packages which require
numeric codes, Tally.ERP 9 pioneered the ‘no accounting codes’ concept. Tally.ERP 9
users have the freedom to allocate meaningful names in plain English to their data items
in the system.
 Complete business solution: Tally.ERP 9 provides a comprehensive solution to the
accounting and inventory needs of a business. The package comprises financial
accounting, book-keeping and inventory accounting. It also has various tools to extract,
interpret and present data.
 Integrated/Non-integrated accounting and inventory: With Tally.ERP 9, the user is
able to choose to maintain accounts only. If accounting with inventory is opted for, the
user can choose whether it should be integrated or not.
 Flexible and easy to use: Tally.ERP 9 is very flexible. It mimics the human thought
process, which means that Tally.ERP 9 can adapt itself to any business need. Tally.ERP 9
users need not change the way their business is run to adapt themselves to the package.
 Speed: Tally.ERP 9 provides the capability to generate instant and accurate reports,
which assist 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.
 Concurrent multilingual 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.
 Real time processing: Immediate posting & updation of books of accounts as soon as the
transactions are entered, thereby facilitating instant statements & Reports. It also facilitates
a real-time multi-user environment.
 Versatility: Tally.ERP 9 is suitable for a range of organisations, from small grocery stores to
large corporations with international locations and operations.
 Multi-platform availability: Tally.ERP 9 is available on multiple versions of windows. It
runs on a single PC or on a network. On a network, it supports access via any
combination of platforms.
 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 client’s data without copying / transferring the data.
 Remote Access: Tally.ERP 9 provides remote capabilities to access the data from
anywhere and anytime.
 Control Centre: works as an interface between the user and Tally.ERP 9 installed at
different sites and enables the user to centrally configure and administer Site/User
belonging to an account.
 Support Centre: allows a user to directly post his support queries on the functional and
technical aspects of the Product.
 Auditor’s Edition: Tally.ERP 9 offers a special Auditors’ Edition of Tally.ERP 9, which
provides auditing and compliance capabilities exclusively for Chartered Accountants.
Functional Features of Tally.ERP 9
Basic Accounting Basic Inventory
Complete book-keeping Stock categories
Books, registers and statements of accounts Stock query by stock group, or stock category
General ledgers Multiple godowns
Accounts receivable and accounts payable Stock transfers to godowns and branches
Flexible voucher numbering Multiple stock valuation methods
Flexible classification of account heads Batch-wise/Lot-wise, including expiry date
handling
Panoramic view Alternate units of measure and tail units
Drill-down display Tracking through receipt notes/delivery
notes/rejections inwards/rejections outwards
Database reporting Additional costs incurred on purchase
Voucher and cheque printing Movement/Profitability analysis Party-wise/Item-
wise/ Stock Group-wise
Columnar reports Customisable sales invoices using price lists with
multiple prices
Bank reconciliation Sales and purchase order processing
Cash flow statement

Advanced Accounting Advanced Inventory

Multiple companies Stock items classified as raw materials, work-in-
process, finished goods
Multi-currency Bill of Material with auto-adjustment of stocks
Multiple financial years Job-working concepts, including sub-contracting
Comparison of data using multi-columnar Additional cost of manufacturing with notional
reporting value and percentage
Memo vouchers CENVAT support
Post-dated vouchers Reorder levels
User-defined voucher types Stock ageing analysis
Sales and purchase extracts Batch related stock reports
Daily balances and transaction values/ Interest Point of Sale (POS)
calculations
Percentage-based reporting
Ratio analysis
Tax Deducted at Source (TDS)
Tax Collected at Source (TCS)
Technology Advantages
Simple and rapid installation: Tally.ERP 9 has a simple, menu-driven installation
procedure. The user can install the program files on any drive if the hard disk has partitions.
The user can also specify the name and directory location of the program files. Tally.ERP 9
uses minimum hard disk space in the local drive. Its installation on the local disk takes just a
few seconds.
Unlimited multi-user support: A multi-user version of Tally.ERP 9 can be installed on a
network, having any number of computers with different operating systems such as Win 98,
NT, 2000, XP etc.
Internal backup/restore: Tally.ERP 9 has an in-built, user-friendly ‘backup and restore’
option. It helps the user to take a backup of one or more companies or all companies, in a
single directory, in the local hard disk, or in any external media.
Data reliability: Tally.ERP 9 offers reliable data. It uses a flexi-field, flexi-length, self-
indexed, weighted file structure for an extremely compact and fast database. Tally.ERP 9 is
robust. Tally.ERP 9 uses signaling quality data integrity checks, at regular levels, to ensure
the complete reliability of data.
User-defined security levels: Tally.ERP 9 offers high levels of security. Users can define
multiple levels of security according to their requirements. Every authorized user in the
company can have an individual password, with rights to use specific features only. The user
with the administrator level password will have full access and can set controls for other
users.
Data security: Tally.ERP 9’s data integrity checks ensure that there are no external changes
to the data. Tally.ERP 9 also uses a binary encoding format of storage to prevent devious
grouping of information.

Tally audit: The Tally.ERP 9 audit feature provides the user with administrator rights and the
capability to check the entries made by the authorised users and alter these entries, if
necessary. Once the entries are audited, Tally.ERP 9 displays the altered entries, if any, along
with the name of the user, who has altered the entry, and the date and time of the alteration.

Tally Vault: Tally.ERP 9 offers a data encryption option called TallyVault. Without the valid
Tally Vault password, the data cannot be accessed. Tally.ERP 9 follows the DES (Data
Encryption Standard) encryption method to safeguard the data.

Removal of data into a separate company: Tally.ERP 9 allows users to maintain a company
for any number of financial years. Once the books of accounts have been completed for the
earlier financial years, the user can split the company data into multiple companies as per
financial periods required. The user 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
the opening balance for the next period (second company).
Multi-directory for company management: The user can create multiple directories to
store data. The data stored in these directories can be accessed directly in Tally.ERP 9, by
specifying the path.

Import/Export of data: Any transaction can be exported and imported to other software
after suitably altering the current structures to accept the Tally.ERP 9 data structure. Data can
also be imported to Tally. ERP 9 by writing a TDL program. The data which is to be exported
from Tally.ERP 9 can be in XML, HTML or ASCII format.

Data Synchronization: Synchronization is the process of exchanging Tally.ERP 9 data

between two or more locations. This process enables a branch office to send its data to the
head office, over the Internet or a private network.

Graphical analysis of data: Tally.ERP 9 provides graphical analysis of data which helps the
user to perform deeper analysis. The user can generate graphical analysis reports such as
Sales register, Purchase register, Ledgers, Funds flow, Cash flow, Stock Item registers and so
on. This helps the management to quickly judge performance and be better prepared for
difficult times.

ODBC (Open Database Connectivity) compliance: It allows other programs to use data
from Tally.ERP 9, directly.

Thus, any program such as MS-Excel or Oracle, which is ODBC compliant, can use data
from Tally.ERP 9. Data connectivity is dynamic, which means that any update in Tally.ERP 9
is reflected in real time in other ODBC compliant software. The user can also extract data
from Tally.ERP 9 and design his/her own report formats in other ODBC compliant software.

Protocol support: Tally.ERP 9 provides protocol support for HTTP, HTTPS, FTP, SMTP,
ODBC and raw sockets with data interchange formats such as XML, HTML with XML
islands, SOAP and related formats. Protocol refers to a mecha- nism by which information
(data) can be put into or taken from Tally.ERP 9. Formats refer to the standard for informa-
tion to be generated from Tally.ERP 9 or from other applications which can exchange data
with Tally.ERP 9.

Direct web browser access: While working on Tally.ERP 9, the user can directly log on to
the Tally website, provided he/she has access to the Internet. The website lists details of all
the facilities offered by Tally. ERP 9. The user can also download the latest release of
Tally.ERP 9 as and when it is available. The Tally website also offers Tally Chat, by which a
user can communicate with a Tally representative and get required information.
Ability to preview and publish reports and documents on the Internet: Companies which
want to publish reports and price lists on their website can do so directly from Tally.ERP 9.

E-mail Facility: Tally.ERP 9 facilitates the mailing of any Tally.ERP 9 report or document.
Multilingual capability: Tally is the world’s first accounting and inventory software with
multilingual capability. Currently, Tally.ERP 9’s multilingual capability extends to 12
languages which include nine Indian languages (Hindi, Gujarati, Punjabi, Tamil, Telugu,
Marathi, Kannada, Malayalam and Bengali), Arabic, Bahasa Melayu and Bahasa Indonesia.
Tally.ERP 9 enables you to enter data in one language and have it transliterated into different
languages. You can generate invoices, purchase orders or delivery notes in the language of
your choice after entering data for the same in any of the nine specified languages. Also, the
phonetic keyboard allows you to spell the term phonetically based on how it sounds and
Tally.ERP 9 displays the data in the language selected after transliteration.

Point of Sale (POS): POS is an acronym for Point of Sale. Point of Sale can be a retail
outlet, a checkout counter in a shop, or any other location where a sales transaction takes
place. It is a computerized cash register which adds up the sales totals, calculates the balance
to be returned to buyer and automatically adjusts the inventory level to reflect the quantity
sold. The equipment required for POS to work effectively are cash registers, card readers,
barcode scanners and so on.
 Getting Started with Tally.ERP9
Creating a Company in Tally.ERP 9

The first step towards working with Tally.ERP 9 is to create a ‘company’. A ‘company’ in
Tally.ERP 9 is a central repository where you can maintain all the financial records of your
business, and from where you can extract the required financial reports and statements.
The procedure to create a company is explained below. To facilitate easier understanding, we
have illustrated the creation of a company named Vridhi Traders:

Go to Gateway of Tally > Company Info. > Create Company

The Company Creation screen appears as per Figure 1.1

Figure 1.1 Company Creation Screen

The fields in the company creation screen and the information to be filled in each of
them are explained below. To navigate between the fields, use the Enter/Tab/Arrow
Keys, or Mouse clicks.
 Directory: The path to the location of Tally.ERP 9 data is displayed here. By default,
the path provided while installing Tally.ERP 9 will be displayed. However, you can
press backspace and specify the location in which you want the data to be stored.
 Name: Provide a name for the company that is being created. In this example, we are
creating a company named Vridhi Traders.
 Primary Mailing details: The mailing name and address details are picked from here
for any report such as balance sheet and statements of accounts.
 Mailing Name: The name provided for the company in the name field is
automatically displayed here. However, you can change it as per requirements. The
name specified here will be used for mailing purposes. In this example, Vridhi
Traders is retained.
 Fill in the company’s address.
 Country: Select the country in which the company is located. This will allow users to
choose the statutory capabilities available for that country. In this example, the
country selected is India.
 Fill in the relevant numbers in the Telephone No. and Mobile No. fields.
 E-Mail: Fill in the company’s official e-mail ID here. This will be used while e-
mailing reports and statements from Tally.ERP 9.

Books and Financial Year Details:

 Financial Year from: This refers to the twelve-month accounting period of the
company. For Vridhi Traders, the financial year begins on 1-7-2016.
 Books beginning from: The date provided in the aforesaid field will be automatically
displayed here. In the example, the date is retained. However, if you have started with
maintaining your books of accounts with Tally.ERP 9 mid-year, the required date can
be set accordingly. Tally will not allow you to record the transactions for dates
preceding the date entered in the books beginning from field.

Security Control:
 TallyVault Password (if any): Once you enter a password here, you will need it to
open your company each time. The name of a company that is locked using
TallyVault will be hidden with the asterisk ‘*’ symbol. You need to provide the
TallyVault password to open and access the company.
  Repeat Password: Here, enter the password entered in the TallyVault field, as a
confirmation.
 Use Security Control?: Setting this option to Yes will allow you to define the access
rights for each user who will access your company. This feature is explained in
forthcoming chapters.

Base Currency Information:

 Base Currency Symbol: The base currency symbol will be filled as per the country
selected.
 Formal Name: The currency’s formal name will be filled here. In this example, it is
INR (Indian Rupees).
 Suffix Symbol to Amount: For some countries, the currency symbol is specified after
the amount. This option can be enabled for such countries, so that the currency symbol
may be printed after the amount. However, Vridhi Traders is an Indian company and
hence this option is set to No.
 Add Space between Amount and Symbol?: Tally.ERP 9 will provide a single space
between the amount and the currency symbol, if this option is set to Yes. For e.g.:
KSh 5,000. Notice the space between symbol and the amount.
 Show amounts in Millions?: If the company’s financial statements need to have their
values expressed in terms of millions, set this option to Yes.
 Number of Decimal Places: By default, the number of decimal places for the base
currency is set to 2. However, you can have up to 4 decimal places. The Indian
currency has 2 decimal places whereas certain other countries require 3 decimal
places and so on.
 Word representing amount after decimal: The symbol for amounts expressed in
decimals will be set by default. For India, it is Paise.
 Decimal Places for printing amounts in Words: You can specify the number of
decimal places for printing the amount in words. This number should be equal to or
lesser than the number specified in number of decimal Places field. For example, if the
currency has up to 3 decimal places, the value to be printed in words can be restricted
to 2 decimal places.
The Completed Company Creation screen appears as per Figure 1.2

Figure 1.2 Company Creation screen of Vridhi Traders

The message Accept? Yes or No will be displayed. Press Y or Enter to save

the details.

Notice that Indus Enterprises is highlighted. This indicates that it is the

currently selected company from the list of open companies. You can click on
the name of another company to make it as the currently open company.

Select a Company
By ‘selecting’ a company, you are essentially opening the company it in Tally.ERP 9.
1. Go to Gateway of Tally > F3: Company Info. (Alt+F3)
2. Click Select Company, or press S. Tally.ERP 9 displays the Select Company screen, with a
List of Companies
that are available in the location specified. You can also press F1 to get to the Select
Company screen.

Shut a Company
By ‘shutting’ a company, you are essentially closing a company.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Shut Company. Tally.ERP 9 displays the Close Company screen, with the List of
Companies that are open. You can also use Alt+F1 from the Gateway of Tally to get to this
screen.
Alter Company Details
By ‘altering’ a company, you are modifying the details which you have provided in the
Company Creation screen.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Alter or press A. Tally.ERP 9 displays the Select Item screen, with a List of
Companies that are available in the location specified. Select the company which you need to
alter and press Enter to view the Company Alteration screen. Alter the company details as
required and accept the screen.
Introduction toTally.ERP9Features and
Configurations
Introduction
The ‘Features’ in Tally.ERP 9 are a set of capabilities, provided as options, that enable you to
maintain financial records as per your business needs. The company features menu can be
found by clicking F11: Features on the vertical button bar. The effect of these options will
be reflected only in the company for which they are enabled.
The ‘Configurations’ in Tally.ERP 9 are options that help you modify the way a feature
works. The configuration menu can be found by clicking F12: Configure on the vertical
button bar. The options when enabled, will have an effect on all the companies in the data
directory.
Once you have created a company in Tally.ERP 9, the next step would be to setup Tally.ERP
9’s ‘Features’ and ‘Configurations’.

Features
The Company Features section in Tally.ERP 9 is divided into the following major categories:
 Accounting Features
 Inventory Features
 Statutory & Taxation
 TSS Features
 Add-On Features
You can press F11: Features from any screen of Tally.ERP 9 or you may also click the F11:
Features button available in the vertical button bar, to enable the required features. The
features are specific only to the company currently in use (for which the said feature is
enabled), thereby allowing flexibility of independently enabling different features for each of
the companies.
Load the company by name Vridhi Traders and go to Gateway of Tally > press F11:
Company Features
The Company Features Screen appears as per Figure 1.3

Figure 1.3 F11 Company Features Menu Screen

Accounting Features
The Accounting Features consists of configurations/functionalities, which generally affect
accounting transactions and reports.
The Accounting features section is further divided into six sub-sections, namely:
 General
 Outstandings Management
 Cost/Profit Centres Management
 Invoicing
 Budgets and Scenario Management
 Banking Features
 Other Feature
Go to Gateway of Tally > F11: Company Features > Accounting Features or click F1:
Accounting Features

The Accounting Features Screen appears as per Figure 1.4

Figure 1.4 F11: Accounting Features screen

 Enable the required features

 Press Enter to accept
Inventory Features
The Inventory features comprise of configurations/functionalities pertaining to inventory
transactions and reports. The Inventory features section is further divided into seven sub-
sections, namely:

 General
 Storage & Classification
 Order Processing
 Invoicing
 Purchase Management
 Sales Management
 Other Features
Go to Gateway of Tally > F11: Company Features > Inventory Features or click F2:
Inventory

The Inventory Feature screen appears as per Figure 1.5

Figure 1.5 F11: Inventory Features Screen

Enable the required features Press Enter to accept

Statutory & Taxation Features
The Statutory & Taxation features comprise of configurations/functionalities pertaining to
statutory compliances available in Tally.ERP 9. The Statutory features are country specific
and strictly depend upon the country selected in the Company Creation screen.

TSS Features
The Tally Software Services (TSS) screen comprises information about Connection,
Remote Access and SMS Access details of a company. The TSS Features will be available
only when Use Security Control is set to Yes in Company Creation screen.

Go to Gateway of Tally > F11: Company Features > TSS Features or click F4:
TSS

Add-On Features
Customers, to meet their accounting requirements, may purchase customised solutions from
Tally Partners. Depending on the customer requirement, the solution provider formulates the
solution. In some cases, a solution may require the introduction of a new feature in Tally.ERP
9 to support the functionality. F6: Add-On Features is a place holder for the features
provided in the Add-ons/Local TDLs loaded.

Go to Gateway of Tally > F11: Company Features > F6: Add-On Features

Data Management and Security Features

The data management and security features comprises of configurations/functionalities
pertaining to:
 Taking backup of a company
 Restoring the backup of a company
 Splitting a company
 Exporting and importing data using Tally.ERP 9
 E-Mailing
 Data Security

Payroll Features
Tally.ERP 9 integrates payroll features with accounting features, and simplifies payroll
processing. Tally.ERP 9 enables users to set up and implement salary structures, ranging
from simple to complex, as per the organisation’s requirements. Users can also align and
automate payroll processes and integrate the same with other accounting applications.
Tally.ERP 9 also supports payslip printing, recording of attendance, leave, and overtime.
Users can also generate gratuity and expat reports.
Configurations
In Tally.ERP 9, F12: Configurations are provided for Accounting, Inventory & printing
options and are user- definable as per the business’ requirements.
The F12: Configurations are applicable to all the companies residing in the Tally.ERP 9 data
Directory. The F12: Configuration options vary depending upon the context, i.e., if you
press F12: Configure from voucher entry screen, the respective F12: Configurations screen
is displayed.
Go to Gateway of Tally > F12: Configure
 Maintaining Chart of Accounts in
Tally.ERP 9
Introduction
A ‘Chart of Accounts’ is a list that depicts the accounts that a business uses to record
transactions in its books of accounts.
Tally.ERP 9 will put together your business’ chart of accounts based on the ‘Ledgers’ and
‘Groups’ that you identify.

Ledgers and Groups

Ledgers
A ‘Ledger’ is an account head. For instance, the sales account head will be called a ‘Sales
Ledger’ in Tally.ERP 9. Similarly, a customer would be an account head, and will be called a
‘party ledger’.
You can create ledgers specific to your business transactions.
For a newly created company, there are two pre-defined ledgers available in Tally.ERP 9:
 Cash
 Profit & Loss A/c

To view the list of ledgers, go to Gateway of Tally > Accounts Info. > Ledgers > Display
(Multiple Ledgers) > Select All Items.
The Multi Ledger Display Screen appears as per Figure 1.6

Figure 1.6 List of Pre-defined Ledgers

Groups
A ‘Group’ is the accounting group under which ledgers of the same nature can be classified.
For instance, Tally.ERP 9 has a default Group ‘Sales Accounts’, under which all the sales
ledgers will be classified.
There are 28 pre-defined groups in Tally.ERP 9, which feature in the chart of accounts of
many organisations. Out of these, 15 groups are primary groups and the remaining 13 are
sub-groups.
Among the 15 primary groups, 9 groups are balance sheet items and the remaining 6 groups
are Profit & Loss A/c items. You can use these groups to build your chart of accounts, as well
as create and used group’s specific to your business transactions.

However, you may also alter the nomenclature of these 28 groups.

To view the list of the 28 groups, known as the List of Accounts, go to Gateway of Tally >
Accounts Info. > Groups > Display (Multiple Groups) > Select All Items.
The Multi Group Display Screen appears as per Figure 1.7

Figure 1.7 List of Multiple Groups Screen

Out of the 15 Primary groups, the following appear in the Profit & Loss Account:
1. Sales Accounts
2. Purchase Accounts
3. Direct Incomes or Income (Direct)
4. Indirect Incomes or Income (Indirect)
5. Direct Expenses or Expenses (Direct)
6. Indirect Expenses or Expenses (Indirect)

Ledger Creation
In Tally.ERP 9, we can create the ledgers in two ways given below:
I. Single Ledger Creation: Here we can create one ledger at a time.
II. Multiple Ledger Creation: Here we can create different ledgers at one go and also
ledgers which belong to particular group.

I. Single Ledger Creation

Creation of Proprietor’s Capital Account ledger from single ledger creation screen.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single LedgerCreation)

2. Enter Name as Proprietor’s Capital Account

3. Select Capital Account from the List of Groups

The Ledger Creation Screen appears as per Figure 1.8

Figure 1.8 Ledger Creation screen — Proprietor’s Capital Account

4. Press Y or Enter to accept the screen

Tally.ERP 9 displays the total debit and credit opening balances in the right upper corner of
screen while the ledgers are being created in the ledger creation screen. This is to avoid
differences in the opening balance.
II. Multiple Ledger Creation
Now let us create the following ledgers using the Multi Ledger Creation option:

To create Multiple Ledgers at once, follow the below given steps:

1. Go to Gateway of Tally > Accounts Info > Ledgers > Multiple ledgers > Create
2. From Under Group field select All Items

3. Under Name of Ledger enter the name as Kaltronic Ltd

4. Select as Sundry Creditors from the List of Groups
5. Press Enter and move to next line as there is no opening balance
6. Similarly, select the other ledgers as shown in figure 1.9.

You will not be able to delete a ledger, once the financial transactions (vouchers) have been
entered (excluding the Opening Balance). If there is a need to delete a ledger with any
financial transactions, all the transactions must be deleted first by pressing Alt+D.

Group Creation

In Tally.ERP 9, there are 28 predefined groups, this mean that it is not necessary to create the
Account Group in Tally.ERP 9. However, considering the different requirement of an
organization and its nature, Tally.ERP 9 has also provided flexibility to create the account
group, if need be.
Group creation is similar to ledger creation in Tally.ERP 9. As with ledgers, there are two
ways of creating groups:
I. Single Group Creation: Involves creation of a single group at a time
II. Multiple Group Creation: Involves creation of multiple groups at a time Single Group
Creation
The group to be created, and the primary group under which it has to be classified, is
specified in the table below:

Group to be created Classification

Debtors – North Sundry Debtors
To create the group,
1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Single Group)
2. Enter Name as Debtors - North
3. Against the field Under select Sundry Debtors from the List of Groups

The Group Creation Screen appears as per Figure 1.10

Figure 1.10 Group Creation — North Debtors

Note: To create a Multi Group in Tally.ERP 9, go to Gateway of Tally >. Accounts Info >
Groups > Under Multiple Groups > Select Create.
 Accounting Vouchers
Introduction
In accounting terms, a voucher is a document containing the details of a financial transaction.
For example, a purchase invoice, a sales receipt, a petty cash docket, a bank interest
statement, and so on. For every such transaction made, a voucher is used to enter the details
into the ledgers to update the financial position of the company. This feature of Tally.ERP 9
will be used most often.
Tally.ERP 9 follows the Golden Rules of Accounting:
Golden Rules of Accounting
Type of Account Debit Aspect Credit Aspect
Personal The receiver The giver
Real What comes in What goes out
Nominal All Expenses and losses All incomes and gains
A voucher entry screen in Tally.ERP 9 comprises of the following sections:

Type of Voucher
It is essential to check if you are using the right voucher for the transaction. You can change
the voucher type by selecting a new type from the button bar, if required. For example on the
selection of a payment voucher, Tally. ERP 9 automatically displays the list of voucher types
you have created. You can select the voucher type required.

Voucher Number
Tally.ERP 9 automatically sets the voucher number for you. You can change the voucher
number manually, if required.

Reference
You can enter a reference of your choice. A purchase order number or an invoice number can
be entered as a reference.

Date of Voucher
The date of the voucher you enter is displayed at the top-right of the voucher creation screen.
The date is taken initially from the Gateway of Tally - Current Date and you may need to
change it frequently to ensure that the vouchers are dated as you want.

Effective Date
A voucher type can be configured to allow for an effective date. The line below the date of
voucher displays the date when the voucher will be effective. This will be available only if the
effective date option is activated in the particular voucher type.
Particulars
This is where you enter the ledger names and the debit and credit amounts. Each line displays
a prompt of Dr or By for debit entries and Cr or To for credit entries.
Depending on the voucher type, Tally.ERP 9 selects either ‘Dr’ or ‘Cr’ for the first prompt,
which you cannot change. Thereafter, you can change the prompt (if necessary) by typing
over it with a ‘D’ or a ‘C’. To select a ledger, type the first letter of its name. Tally.ERP 9 then
displays a List of ledger accounts beginning with the letter highlighted. Only ledgers suitable
for the voucher type are displayed. The revised current balance is shown after the amount is
entered. On selecting the next ledger, Tally.ERP 9 suggests the balancing amount as the value
to be entered, which may be accepted or typed over. The voucher entry cannot be completed
until the debits equal the credits.

Narration
Here you type whatever appropriately describes the transaction. Remember, you can have a
separate narration for each line of particulars, if you configure the voucher type in that way.
Once the narration is complete, press Enter to bring up the Accept? The box. Once you
accept the data, Tally.ERP 9 presents another voucher entry screen.

Accounting Vouchers

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to

perform a different job. The standard accounting vouchers are:
 Contra Voucher (F4)
 Payment Voucher (F5)
 Receipt Voucher (F6)
 Journal Voucher (F7)
 Sales Voucher/Invoice (F8)
 Credit Note Voucher (Ctrl+F8)
 Purchase Voucher (F9)
 Debit Note Voucher (Ctrl+F9)
You can alter these vouchers to suit your company, and also create new ones. Read ahead to
understand the function of each voucher type. The following exercises are sample entries for
understanding voucher entry in Tally. ERP 9.
Let us understand how to record accounting transactions in Tally.ERP 9, with examples from
the books of accounts of Vridhi Traders.
 Maintaining Inventory in Tally. ERP-9
Introduction
The inventory system operates in much the same way as the accounting system. In the place
of accounting groups, ‘Stock Groups’ and ‘Stock Categories’ are used, and in the place of
ledgers, ‘Stock Items’ are used.

Stock Item
A Stock Item is a unit of the goods that a business trades in. For instance, Vridhi Traders deal
in electronic goods. ‘Television’ will be a ‘Stock Item’ for them.

Units of Measure
Stock items are purchased and sold on the basis of quantity. The quantity in turn is measured
in units. In Tally. ERP 9, such goods are quantified using ‘Units of Measurement’. Units of
Measure can be ‘simple’ or ‘compound’. Examples of simple units of measure are: numbers,
metres, kilograms, pieces, etc. Examples for compound units of measure are: a box of 10
pieces, etc.

Stock Group
A Stock Group is similar to the groups we create for accounting. Stock Items of similar
nature, brand, etc. can be classified under a single stock group. In the example above, the
stock group for ‘Television’ can be the brand, like ‘Sony’, ‘Videocon’, ‘Philips’, etc.

Godowns (Store house)

A place where stock items are stored is referred to as a “Godown”. For example, a
warehouse. You can obtain stock reports for each godown and account for the movement of
stock between Godowns (Store houses).

Creating Inventory Masters

Let us take the example of Vridhi Traders who sell Televisions and Music Systems. Given
below is the structure of items being sold. Main Stock Group: Television
Stock Group Stock Items
Sony TV Sony 29 inch TV
Hiteq TV Hiteq 29 inch TV
Samsung TV Samsung 29 inch TV
Main Stock Group: Music Systems
Stock Group Stock Item
Sony Music systems Sony Tape Recorder
Samsung Music systems Samsung Tape Recorder
Table 1 List of Stock Groups and Stock Items

Vridhi Traders has two Godowns, the Onsite Godown and the Warehouse Godown. The Unit
of Measure will be Numbers (Nos.).
To facilitate easier understanding, the creation of the aforesaid inventory masters is
illustrated for Vridhi Traders, in the following order:
1. Stock Groups
2. Godowns
3. Units of Measure
4. Stock Items

Creating a Stock Group

The grouping structure in Tally.ERP 9 is as follows:
1. Television (main stock group, to be grouped under Primary)
Sony TV – stock group under Television
Hiteq TV – stock group under Television
Samsung TV – stock group under Television
2. Music Systems (main stock group, to be grouped under Primary)
Sony Music Systems – stock group under Music Systems
Samsung Music Systems – stock group under Music Systems Create the Stock Group –
Television under Primary
1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single
Stock Group)
2. Enter the Name for the stock group as Television
3. Classify the group under Primary
4. Set the option Should Quantities of items be Added to Yes
The Stock Group Creation Screen appears as per Figure 1.11

Figure 1.11 Stock Group Creation — Television

5. Press Enter to Accept the Screen

Create the stock group by name Music Systems under Primary.

Create Sony TV under the stock group - Television
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single Stock
Group)
1. Enter the Name for the stock group, that is, Sony TV
2. Classify the group under Television
3. Set the option Should Quantities of items be added to Yes
The Stock Group Creation screen appears as per Figure 1.12

Figure 1.12 Stock Group Creation — Sony TV

4. Press Enter to Accept the Screen

Creating a Unit of Measure

As mentioned in the example, the Unit of Measure will be Numbers (Nos)
To create the Unit of Measure,
Go to Gateway of Tally > Inventory Info. > Units of Measure > Create
1. Enter the Symbol to be used for the Unit of Measure, that is, Nos
2. Enter the Formal Name, that is, Numbers
3. Specify the number of decimal places. Here, it is zero
4. Press Enter or Y to accept the screen.

Creating a Stock Item

As per the example, create the stock item Sony 29 inch TV. To create the same,
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
Press F12 from stock item creation screen and set the option Allow Advanced entries in
Masters to No.
1. Enter the Name for the stock item, that is, Sony 29 inch TV
2. Group the Stock Item under Sony TV
3. Select the Units as Nos
The Stock Item Creation Screen appears as per Figure 1.13

Figure 1.13 Stock Item Creation — Sony 29 inch

 Inventory Vouchers
Introduction
Tally.ERP 9 inventory transactions perform the same function in the inventory system as
accounting transactions do for the purpose of recording accounting transactions. They are the
means by which you enter transactions relating to inventory. The transactions record entries
relating to the issue and receipt of stock, the transfer of stock between locations, and physical
stock adjustments. The following inventory transactions are available in Tally.ERP 9:

Purchase Order (Alt+F4)

Sales Order (Alt+F5)
Rejections out (Alt+F6)
Rejections in (Ctrl+ F6)
Stock Journal (Alt+F7)
Delivery Note (Alt+F8)
Receipt Note (Alt+F9)
Physical Stock (Alt+F10)

Voucher Configuration
To use above given vouchers,
Go to Gateway of Tally > Press F11:Company Features > F2: Inventory Features
To enable Delivery Note, Receipt Note and Rejections Voucher, set Yes to Use
Tracking Numbers (enables Delivery and Receipt Notes) and Use Rejection Inward and
Outward Notes.
Go to Gateway of Tally > F12: Configuration > Invoice/Orders Entry – Set Provide
Complete

Accounting Allocations in Order/Delivery Note to Yes

Make sure that Inventory Values are affected? is set to Yes in all ledger accounts under
the groups sales accounts and purchase accounts

Inventory Vouchers
Purchase Order (Alt+F4): A Purchase Order is an order placed by a business entity with a
supplier for the delivery
of specified goods at a given price and at a predetermined time.
Receipt Note (Alt+F9): Receipt Note voucher type is used for recording goods received
from the supplier. Rejections Out (Alt+F6): The Rejections Out voucher records goods that
are rejected and returned to a supplier. Sales Order (Alt+F5): Sales Order is an order placed
by a customer for the delivery of specified goods at a given price and at a predetermined
time.
Delivery Note (Ctrl+F8): A Delivery Note is used for recording goods delivered to a
customer.
Rejection In (Ctrl+F6): A Rejection In voucher is used to record goods that are rejected and
returned by the customer.
Let us understand how to record inventory transactions in Tally.ERP 9, with examples from
the books of accounts of Vridhi Traders.
Stock Journal (Alt+F7)
To record the consumption and adjustment of goods and to transfer stock from one godown
to another, a stock journal voucher is used.
 CONCLUSION

In this project I have done case study on Vridhi Enterprises and I

have passed all the transactions from the financial year on the tally
software with the guidance of our teacher Miss Yogita Soni. She
encourages and motivates us during this project. In this project I have
done all the statutory & taxation configuration and setting of Payroll,
TDS, Goods and Services tax. During payroll transactions I create
employees and their departments, then attendance of all the
employees, then create all the pay heads.

In this project I have define how to create a company, manage

payroll, how to maintain salary, how to deduct taxes from salary, how
to manage sales and purchase transactions, apply GST on purchase
and sale, apply GST on different services, journal transactions,
calculate tax deducted at source, then create payroll reports and attach
annexure reports with the project.