Q.Write down the steps to create company in tally?

Answer.

Creating a company in Tally ERP 9 involves several steps. Below are the detailed steps for company
creation, along with explanations:

Open Tally ERP 9:

Launch the Tally ERP 9 application on your computer. You will be greeted with the Gateway of Tally
screen.

Select 'Create Company':

From the Gateway of Tally, go to the "Company" section, which is often represented by an icon or option.
Click on "Create Company" to begin the creation process.

Enter Company Name:

In the "Company Name" field, type the desired name for your company. This name should reflect your
business for easy recognition.

Provide Address Details:

Fill in the fields for "Address," "City," "State," and "Country." This information is essential for
identification and reporting purposes.

Enter Contact Information:

Input the company’s contact numbers, email address, and website if applicable. This ensures proper
communication channels are established.

Set Financial Year Beginning:

Specify the start date of your financial year (e.g., April 1st). Tally will use this date to create financial
reports.

Select Base Currency:

Choose the base currency of your company (e.g., Indian Rupee, US Dollar). This will be used for all
transactions and reports.

Enable Features (if needed):

You can turn on additional features such as "Inventory," "Payroll," "Taxation," etc., according to the needs
of your business. Choose these features based on what your company will utilize.

Set Security Control (optional):

If you want to set up security for access control, you can enable security features. This ensures that only
authorized personnel can access the company data.

Save Company Details:

After entering all the required details, select the "Save" button to finalize the creation of your company.
Tally will confirm that the company has been created successfully.

Select the New Company:

Once the company is created, you may need to select it from the list of companies available if you have
multiple companies in Tally.

Start Using Tally:

After selecting the newly created company, you can begin entering transactions, managing inventory, and
generating reports.

Q.Mention the steps for Group,Ledger creation in Tally. Further, also mention the steps to create the
opening balance sheet.

Answer.

Creating groups and ledgers and establishing an opening balance sheet in Tally ERP 9 is essential for
accurate accounting. Below are the steps broken down in a simple and detailed manner.

A. Creating Groups in Tally ERP 9

Open Tally ERP 9:

Launch the software and go to the Gateway of Tally.

Navigate to Chart of Accounts:

From the Gateway of Tally, select Accounts Info. This will allow you to access the lists of groups and
ledgers.

Select 'Groups':

In the Accounts Info menu, click on Groups.

Choose 'Create':

Select the option Create to start the process of adding a new group.

Enter Group Name:

Input a clear and appropriate name for the group (e.g., “Sundry Creditors,” “Fixed Assets,” etc.). This helps
in classifying similar ledgers.

Select Group Type:

Choose the type of group from the list provided (e.g., Primary, Sundry Debtors, Sundry Creditors, etc.). This
categorization helps in organizing the accounts for reporting.

Set Under Condition:

You can set the new group under any existing group if required (i.e., specify a parent group). For instance,
you may create a sub-group under “Assets” for “Current Assets.”
Save the Group:

After entering the necessary details, select Save (usually by pressing Ctrl + A) to create the new group.

B. Creating Ledgers in Tally ERP 9

Open Ledger Creation:

Still in the Accounts Info menu, pick Ledgers instead of Groups.

Select 'Create':

Choose Create from the Ledger options.

Enter Ledger Name:

Provide a name for the ledger (e.g., “Cash,” “Bank,” “Sales,” etc.). Ensure it is specific to recognize it easily.

Select Group:

Assign the ledger to the appropriate group you created earlier. This allows it to be classified correctly in the
Balance Sheet.

Choose Opening Balance (if applicable):

If this is your opening ledger and you need to enter an opening balance, specify the opening amount in
the Opening Balance field. Enter the balance amount along with the date from which the balance applies.

Set Additional Details (if needed):

Fill in other optional fields as needed, such as Address, Contact details, GST details, etc., depending on your
business requirements.

Save the Ledger:

Finally, save the ledger by pressing Ctrl + A.

C. Creating an Opening Balance Sheet

Identify the Opening Balances:

Figure out the opening balances for all the groups and ledgers you have created. This includes assets,
liabilities, revenue, and expenses.

Record Opening Balances in Ledgers:

For each created ledger, navigate to the “Transaction” section and enter the opening balances for the year.

Use Journal Entries:

Go to the Gateway of Tally, select Accounting Vouchers > choose Journal.

Enter the date (start of the financial year) and fill in the details for each transaction, debiting and crediting
the respective ledgers to reflect their opening balances.
View Trial Balance:

After entering all opening balances, you can verify the balances by going to Reports > Trial Balance. Ensure
that the total debits equal total credits to confirm accuracy.

Finalize Opening Balance Sheet:

Generate the Balance Sheet by navigating to Reports > Balance Sheet to view your created groups and
ledgers along with their opening balances.

Save Financial Data:

Make sure to regularly save and back up your financial data to avoid any loss.
With these steps, you can effectively create groups and ledgers and set up an opening balance sheet in Tally
ERP 9.

Q.Define the Stock Items, Stock Group, Stock Category, Units of Measurement, in Tally ERP 9.
Mention the steps for its creation.

Answer.

In Tally ERP 9, managing inventory is vital for tracking stock items effectively. This includes concepts such
as Stock Items, Stock Groups, Stock Categories and Units of Measurement.Here's an overview of each
component along with steps for their creation:

A. Stock Items

Definition: Stock Items are the individual goods or products that you manage in your inventory. Each item
can have specific information like the rate, quantity, and tax details.

Steps to Create Stock Items:

Open Tally ERP 9:

Launch the application and go to the Gateway of Tally.

Navigate to Inventory Info:

Select Inventory Info from the Gateway.

Select 'Stock Items':

From the Inventory Info menu, click on Stock Items.

Choose 'Create':

Select the Create option to add a new stock item.

Enter Stock Item Name:

Type in the name of the stock item (e.g., “Laptop,” “Office Chair”).

Select the Group:

Choose the appropriate stock group from the drop-down menu. If necessary, create a new stock group
beforehand.

Specify Units of Measurement:

Select or create the appropriate unit of measurement (e.g., pieces, kilograms) that applies to this stock item.

Enter Opening Balance:

If applicable, enter the opening balance for this stock item along with the quantity, specifying the date.

Specify Additional Details (optional):

Fill in other details like rate, tax information, and other accounts if needed.

Save the Stock Item:

Press Ctrl + A to save the stock item.

B. Stock Groups

Definition: Stock Groups are used to categorize stock items based on specific criteria (e.g., Electronics,
Furniture), which aids in better stock management and reporting.

Steps to Create Stock Groups:

Open Tally ERP 9:

Start Tally and go to the Gateway of Tally.

Navigate to Inventory Info:

Click on Inventory Info.

Select 'Stock Groups':

From the menu, choose Stock Groups.

Choose 'Create':

Select Create to initiate the creation of a new group.

Enter Group Name:

Input the name for the stock group (e.g., “Electronics”).

Set 'Under' Condition:

Specify the parent group under which this group will fall, if necessary.

Save the Stock Group:

Press Ctrl + A to save your new stock group.

C. Stock Categories
Definition: Stock Categories are used to classify stock items into various categories for reporting or analysis
purposes. They help in distinguishing between different lines of inventory.

Steps to Create Stock Categories:

Open Tally ERP 9:

Launch the application and go to Gateway of Tally.

Navigate to Inventory Info:

Select Inventory Info.

Select 'Stock Categories':

Choose Stock Categories from the options.

Choose 'Create':

Click on Create to add a new stock category.

Enter Category Name:

Type the name of the category (e.g., “Computers,” “Office Supplies”).

Set 'Under' Condition:

Specify the parent category if required (if you have existing categories).

Save the Stock Category:

Press Ctrl + A to save the new category.

D. Units of Measurement

Definition: Units of Measurement define how stock items are quantified (e.g., pieces, liters, kilograms). It
helps in standardizing the measurement of stock.
Steps to Create Units of Measurement:

Open Tally ERP 9:

Go to the Gateway of Tally.

Navigate to Inventory Info:

Select Inventory Info.

Select 'Units of Measure':

Click on Units of Measure.

Choose 'Create':

Select Create to add a new unit.

Enter Unit Name:

Input the name of the unit (e.g., “Pcs,” “Kg,” “Ltr”).

Define Abbreviation:

Enter an abbreviation for the unit, which will be used in reports.

Save the Unit of Measurement:

Press Ctrl + A to save your entry.

Q. Define Godown and Primary Location in Tally. Mention the steps as to how it works during stock
purchase,transfer and sales

Answer.

In Tally ERP 9, Godowns and Primary Locations are essential management features for tracking stock items
and inventory movements efficiently. Here’s a detailed explanation of each term along with the steps related
to stock purchases, transfers, and sales.

Godown
Definition: A Godown is a physical location or storage area where stock items are stored. It helps businesses
manage their inventory across different locations, allowing for better tracking of stock levels and
movements.

Primary Location
Definition: The Primary Location refers to the default or main location where stock items are stored,
typically the primary godown of a business. It is used to manage stock without specifying a particular
godown during transactions.

How Godowns and Primary Locations Work

1. During Stock Purchase

Steps:

Open Tally ERP 9:

Launch the application and go to the Gateway of Tally.

Select 'Accounting Vouchers':

Navigate to Accounting Vouchers using the main menu.

Choose 'Purchase Voucher':

Press F9 to select the Purchase Voucher.

Enter Purchase Details:

Fill in the details like Supplier Ledger, Date, etc.

Select Godown for Stock Item:

When entering stock item details, use the Godown field to select the appropriate godown where the items
will be stored upon purchase.

Save the Purchase Entry:

After entering all information, press Ctrl + A to save the purchase.

Outcome: The purchased stock items will be updated in the selected godown, and Tally will adjust the
inventory levels accordingly.

2. During Stock Transfer

Steps:

Open Tally ERP 9:

Start your program and access the Gateway of Tally.

Select 'Inventory Vouchers':

Navigate to Inventory Vouchers from the main menu.

Choose 'Stock Transfer':

Select the Stock Transfer voucher, usually by pressing Ctrl + P (or the designated option).

Enter Transfer Details:

Specify the date, and select the stock item you wish to transfer.

Specify Source and Destination Godowns:

In the stock transfer entry, specify the From Godown (the godown from which stock is being transferred)
and To Godown (the godown to which stock is being sent).

Save the Transfer Entry:

After inputting necessary details, press Ctrl + A to save the stock transfer entry.
Outcome: The stock levels in the source godown decrease while the stock levels in the destination godown
increase accordingly, reflecting the inventory movement.

3. During Stock Sales

Steps:

Open Tally ERP 9:

Access the application and go to Gateway of Tally.

Select 'Accounting Vouchers':

Navigate to Accounting Vouchers.

Choose 'Sales Voucher':

Press F8 to access the Sales Voucher.

 Enter Sales Details:

Fill in the customer’s ledger, date, and other relevant sales information.

Specify the Godown:

In the sales entry, select the godown from which inventory will be sold if it differs from the primary location.

Save the Sales Entry:

After confirming all details, press Ctrl + A to save the sales transaction.
Outcome: When the sale is made, inventory levels in the specified godown decrease accordingly, and the
system updates the records to reflect the sale.

Using Godowns and Primary Locations in Tally ERP 9 allows businesses to manage their inventory
effectively by tracking stock movements across multiple storage locations and ensuring accuracy in stock
levels during purchases, transfers, and sales. This systematic approach helps in maintaining a clear
understanding of where stock is held, which is crucial for inventory management and financial reporting.

Q.Define the term Accounting voucher, inventory voucher, memorandum voucher, invoicing in tally.
Mention its use and its applicability in tally.

Answer:

In Tally ERP 9, various types of vouchers serve different purposes in managing financial transactions and
inventory. Here’s a detailed explanation of the terms Accounting Voucher, Inventory Voucher,
Memorandum Voucher, and Invoicing, along with their uses and applicability in Tally.

1. Accounting Voucher

Definition: Accounting vouchers are used to record all accounting transactions in Tally. They cover various
financial activities such as purchases, sales, receipts, payments, journal entries, and payments of expenses.

Use:

Recording day-to-day financial transactions in a business.

Managing health of accounts, including management of ledgers related to income and expenses.

Generating financial statements like Profit and Loss Account and Balance Sheet.

Types of Accounting Vouchers:

 Payment Voucher (F5): To record payments made.
 Receipt Voucher (F6): To record monies received.
 Sales Voucher (F8): To record sales transactions.
 Purchase Voucher (F9): To record purchases made.
 Journal Voucher (F7): For non-cash transactions or adjustments.

Applicability in Tally:
 Accounting vouchers are essential for maintaining the complete financial records of a business and
are crucial in generating various financial reports.

2. Inventory Voucher
 Definition: Inventory Vouchers are used specifically for managing and tracking stock movements. These
vouchers handle transactions related to the inventory, such as purchases, sales, stock transfers, stock
adjustments, and physical stock verification.

Use:
 Recording purchases and sales of stock items.
 Managing stock transfers between different godowns or locations.
 Adjusting stock in case of discrepancies (manufacturing errors, wastages, etc.).

Types of Inventory Vouchers:

 Stock Journal (Ctrl + J): For adjustments and transfers of stock items.
 Stock Transfer Voucher (Ctrl + P): To record the movement of stock between godowns.
 Receipt Note: Used for recording stock received from suppliers.
 Delivery Note: Used for recording stock sent to customers.

Applicability in Tally:
 Inventory vouchers help businesses track their inventory levels and manage stock efficiently,
ensuring accurate reporting and stock control.

3. Memorandum Voucher

Definition: Memorandum Vouchers are not used for actual accounting but serve to maintain records for
future reference. They can help in tracking non-financial transactions or commitments.

Use:
 Recording transactions that do not require immediate financial impact, such as pending sales or
orders.
 Keeping unofficial entries for internal reference without affecting the financial statements.

Applicability in Tally:
 This type of voucher assists businesses in maintaining a record of various activities without
impacting the financial data immediately. They can be used to remind or keep track of potential future
transactions.

4. Invoicing

Definition: Invoicing in Tally refers to the process of creating and managing invoices for customer
transactions. An invoice is a document that itemizes a sale of goods or services along with the payment
details.

Use:
 Issuing detailed bills to customers for goods sold or services rendered.
 Tracking accounts receivable and ensuring timely payments.
 Generating a record of sales transactions for both the seller and customer.

Applicability in Tally:
 Invoicing is a vital part of the sales process, enables accurate tracking of sales, and helps maintain
healthy cash flow by monitoring outstanding payments. It also assists in GST reporting when applicable.

Q. Elaborate the following Define . Cost Centre, Cost Category, Budgets and Controls in tally ERP 9

Answer.
In Tally ERP 9, Cost Centre, Cost Category, Budgets, and Controls are features designed to aid businesses
in tracking costs, managing budgets, and analyzing financial performance. Here’s an overview of each term
and their significance:

1. Cost Centre
Definition: A Cost Centre is a unit or a department within an organization where costs can be allocated and
tracked. Cost Centres can be used to monitor expenses for different segments of the business, such as
departments, projects, or locations.

Use:

Facilitates detailed tracking of costs associated with specific functions or departments.

Helps in performance analysis by comparing costs against revenue generated.
Aids in making informed business decisions by identifying areas of high spending.

Applicability in Tally:

Cost Centres can be created in Tally under Accounts Info. When transactions are entered, users can allocate
costs to the relevant Cost Centre, allowing for better financial visibility and control over departmental
expenses.

2. Cost Category

Definition: Cost Categories act as a grouping mechanism for related Cost Centres. They allow businesses to
categorize various cost centres together for consolidated analysis and reporting.

Use:
Enables businesses to categorize costs based on specific functions or projects for better management.
Helps in preparing comparative reports for evaluating performance across various categories.

Applicability in Tally:
In Tally, Cost Categories can be created to group similar Cost Centres, making it easier to analyze expenses
at a broader level.

3. Budgets
Definition: Budgets in Tally refer to predefined financial plans that outline expected revenues, expenses, and
cash flows over a specific period. Budgets help organizations set financial goals and evaluate performance
against those goals.

Use:
Helps in planning and controlling financial activities within the organization.
Allows businesses to set financial targets and monitor performance against those targets.
Supports decision-making by providing insight into potential financial outcomes.

Applicability in Tally:
Budgets can be created and managed in Tally, where users define the various heads of income and
expenditure along with their expected amounts. Tally can then track actual performance against the
budgeted amounts to ensure adherence to financial plans.

3. Controls
Definition: Controls in Tally refer to the mechanisms and features implemented to monitor and manage
financial transactions, ensuring that the business adheres to established budgets and performance
expectations.

Use:
Helps in enforcing budget compliance by monitoring actual expenses against the budget.
Facilitates variance analysis, which can identify discrepancies between planned and actual figures.
Ensures better financial discipline and accountability within the organization.

Applicability in Tally:
Tally allows users to set control mechanisms through various features, such as limit settings or alerts. These
controls help maintain financial discipline and ensure adherence to budgetary constraints.

Q.Define the terms under Financial Reports (Trial Balance, Profit & Loss, Balance Sheet) application
in tally, how we can see these reports in tally.

Answer.

Financial reports are essential for analyzing a business's financial performance and position. In Tally ERP 9,
important financial reports include the Trial Balance, Profit & Loss Account, and Balance Sheet. Here’s a
detailed overview of each report, its significance, and how to access them in Tally.

1. Trial Balance

Definition: The Trial Balance is a financial statement that lists all the balances of the general ledger accounts
at a specific point in time. It acts as a preliminary step in preparing final accounts and helps to ensure that
total debits equal total credits.
Application:
Verification of Ledger Balances: It checks the arithmetical accuracy of the accounts.
Opening of Final Accounts: It serves as a basis for preparing the Profit & Loss Account and Balance Sheet.
Financial Analysis: It helps in analyzing trends and variances in account balances.
How to See Trial Balance in Tally:
 Open Tally ERP 9.
 Go to the Gateway of Tally.
 Navigate to Reports.
 Select Trial Balance under the Display option.
 Choose the date for which you want to view the Trial Balance.
 The Trial Balance report will be displayed, showing all the account balances.

2. Profit & Loss Account

Definition: The Profit & Loss Account (P&L Account) summarizes the revenues, costs, and expenses
incurred during a specific period (typically a financial year). It reflects the business's operational
performance.
Application:
Profitability Overview: It shows whether the business is making a profit or incurring a loss over the period.
Expense Management: It provides insights into operational costs, helping in expense management and
analysis.
Financial Planning: It aids in future planning by highlighting areas of income generation and cost control.

How to See Profit & Loss Account in Tally:

Launch Tally ERP 9.
Navigate to the Gateway of Tally.
Select Reports.
Choose Profit & Loss Account under the Display option.
Specify the date range or financial year for which you want to view the P&L Account.
The Profit & Loss Account will be displayed, summarizing total income and expenses, leading to net profit
or loss.

3. Balance Sheet
Definition: The Balance Sheet is a financial statement that showcases the assets, liabilities, and equity of a
business at a specific point in time. It provides a snapshot of the company's financial position.
Application:
Financial Position Assessment: It outlines the financial stability and liquidity of the business.
Decision Making: Helps stakeholders make informed decisions regarding investments, creditworthiness, and
financial management.
Compliance and Reporting: Essential for meeting regulatory requirements and for external reporting to
investors and creditors.
How to See Balance Sheet in Tally:
 Open Tally ERP 9.
 Go to the Gateway of Tally.
 Navigate to Reports.
 Select Balance Sheet under the Display option.
 Specify the date for which you want to see the Balance Sheet.
 The Balance Sheet will be displayed, listing all assets, liabilities, and equity figures.

Q.What is Stock Analysis and Reports in Tally ERP 9

Answer.

In Tally ERP 9, Stock Analysis and Reports are tools designed to help businesses track, manage, and
analyze their inventory effectively. These features provide insights into inventory levels, movements, and
valuation, enabling informed decision-making regarding stock management.

Key Features of Stock Analysis and Reports

Stock Summary:

Definition: Provides a concise overview of the stock items available, including their quantities, rates, and
total value.
Usefulness: Helps businesses quickly assess the current stock levels and overall inventory value at a glance.

Inventory Valuation:

Definition: Outlines the valuation of the stock based on methods like First In First Out (FIFO), Last In First
Out (LIFO), or Average Cost method.

Usefulness: Useful for financial reporting and determining the cost of goods sold (COGS) for accurate
profit calculations.

Stock Ledger:

Definition: A detailed report that shows all the transactions related to a specific stock item, including
purchases, sales, transfers, and adjustments.
Usefulness: Enables tracking of stock movements, helping in identifying discrepancies and analyzing stock
performance.

Movement Analysis:
Definition: Reports showing the movement of stock items over a specified period, including stock-in and
stock-out statistics.
Usefulness: Provides insights into fast-moving and slow-moving items, assisting in inventory planning and
reordering decisions.

Stock Ageing Analysis:

Definition: An analysis that categorizes stock balances based on how long they have been held in inventory.
Usefulness: Helps identify obsolete or slow-selling stock items, aiding in inventory optimization efforts.

Physical Stock Report:

Definition: A report that compares recorded stock levels with actual stock levels after a physical count.
Usefulness: Essential for identifying discrepancies, managing shrinkage, and ensuring accurate stock
records.
How to Access Stock Analysis and Reports in Tally ERP 9

Open Tally ERP 9:

Launch the application on your computer and navigate to the Gateway of Tally.

Navigate to Inventory Reports:

Select Inventory Books or Reports, depending on the version you are using.

Select Desired Report:

Choose from various stock-related reports like Stock Summary, Stock Ledger, Movement Analysis, etc.
For example, selecting Stock Summary will display a summary of all stock items along with their respective
quantities and values.

Customize Reports:

You have the option to customize the reports based on date ranges, specific stock items, or stock groups to
get targeted insights.

Export or Print Reports:

Once the reports are generated, you can export them in different formats (like PDF, Excel) or print directly
for documentation and further analysis.

Stock Analysis and Reports in Tally ERP 9 are vital tools for businesses that want to maintain control over
their inventory. By providing detailed insights into stock levels, movement, and valuation, these reports
enable businesses to optimize stock management, enhance operational efficiency, and make informed
purchasing

Q.Payroll Accounting in Tally-Discuss

Answer.

Payroll Accounting in Tally ERP 9 facilitates the management of employee compensation, taxation, and
other payroll-related activities. This feature allows businesses to efficiently process employee salaries,
manage statutory compliance, and generate necessary reports. Below is a detailed explanation of how
payroll accounting works in Tally, including its components, key features, and steps to set it up.
Key Components of Payroll Accounting in Tally

Employee Master Data:

Definition: This is the primary record for each employee, containing personal details, salary structure, and
relevant information such as their designation and department.
Importance: Having a well-maintained employee master file helps in accurate payroll processing and
reporting.

Payroll Items:

Definition: These are the components that make up an employee's salary and may include Earnings,
Deductions, and Employer Contributions.
Importance: Properly defining payroll items ensures all components of salary are calculated correctly during
payroll processing.

Salary Structures:

Definition: A predefined structure that comprises various payroll items combined to represent an employee's
salary.
Importance: Salary structures help in maintaining consistency in payroll processing for different categories
of employees.

Statutory Compliance:

Tally enables compliance with statutory regulations such as Provident Fund (PF), Employee State Insurance
(ESI), and professional tax deductions.

Payroll Processing:

Tally automates the calculation of salaries based on attendance, leave, bonuses, and deductions.

Reports Generation:

Tally provides various payroll reports such as Payslips, Payroll Summary, and Statutory Reports, which aid
in financial planning and compliance verification.

Steps to Set Up Payroll Accounting in Tally ERP 9

Step 1: Enable Payroll Feature

Open Tally ERP 9:

Launch Tally and navigate to the Gateway of Tally.

Activate Payroll Feature:

 Go to F11: Features > F1: Accounting Features.

 Set Enable Payroll to "Yes" to activate the payroll module.

Step 2: Create Employee Master

Go to Payroll Info:
From the Gateway of Tally, navigate to Payroll Info.

Select Employee:

Choose the Employees option and click on Create.

Enter Employee Details:

Fill in details like Employee Name, Designation, Group, Branch, Date of Birth, and other required
information.

Define Salary Structure:

Specify the Salary Details under "Working Days," "Gross Salary," and other components relevant to the
employee.

Save Employee Record:

Press Ctrl + A to save the employee master data.

Step 3: Define Payroll Items

Go to Payroll Info:

Again navigate to Payroll Info.

Select Salary Components:

Choose Payroll Items and click on Create.

Enter Payroll Item Details:

Create items for earnings (e.g., Basic Salary, HRA, Bonus) and deductions (e.g., PF, ESI, TDS).

Define Calculation Method:

Specify how each item will be calculated (fixed amount, percentage of salary).

Save Payroll Items:

Press Ctrl + A to save changes.

Step 4: Define Salary Structure

Go to Payroll Info:

Navigate again to Payroll Info.

Select Salary Structures:

Choose Salary Structures and click on Create.

Enter Structure Name:

Define the name for the salary structure (e.g., Monthly Salary).
Link Payroll Items:

Specify the earnings and deductions applicable for this salary structure.

Save Salary Structure:

Press Ctrl + A to save.

Step 5: Process Payroll

Go to Accounting Vouchers:

Select the Accounting Vouchers option from the Gateway of Tally.

Select Payroll Voucher:

Press Alt + P to choose the Payroll Voucher.

Select Employee:

Choose the employee whose salary you wish to process.

Enter Salary Details:

Fill in the details such as Attendance, Leave, and any adjustments that need to be made.

Save Payroll Entry:

After entering all required information, press Ctrl + A to save the payroll entry.

Step 6: Generate Payroll Reports

Go to Reports:

From the Gateway of Tally, navigate to the Display Reports section.

Select Payroll Reports:

Choose Payroll Reports