Tally

Introduction
• Tally Solutions is an Indian Software Company, then known as Peutronics, was co-founded in 1986 by Shyam
Sunder Goenka and his son Bharat Goenka.

• The first version of the accounting software was launched as an MS-DOS application which had only basic
accounting functions and was named Peutronics Financial Accountant.

• Tally.ERP 9 (Now TallyPrime) is an enterprise resource planning software developed by Tally Solutions Pvt Ltd,

headquartered in Bangalore, Karnataka India.

• Tally.ERP 9 is a windows-based Enterprise Resource Planning software. The software

handles Accounting, Inventory Management, Order Management, Tax Management, Payroll, Banking and many
such requirements of the business.

• Tally.ERP 9, enterprise software was launched in the year of 2009.

 Features
• Accounting management in Tally.ERP 9 software

• Banking transactions support in Tally.ERP 9 software

• Inventory management

• GST compliance in Tally.ERP 9 software

• Easy access to business reports

• Budgets and controls

• Manage unlimited companies and group companies

• Security features in ERP Software

• ERP Software functionality – Remote access

• Synchronization of data from two or more places

 Tally.ERP 9 is available in two versions, Tally.ERP
9 Silver and Tally.ERP 9 Gold

Versions available Tally.ERP 9 Silver is a single user license, priced at

Rs. 18,000/- plus applicable GST

Tally. ERP 9 Gold is a multi-user license, priced at

Rs. 54,000/- plus applicable GST. With a multi-
user license, unlimited number of users can work
in parallel in a single LAN environment.
  Reliability of Information

 Assurance of Information

 Tally Audit

 Tally Vault

 Effortless Data Movement

Advantages  Elimination of Human Error

 Continuous Processing

 Tally Makes Business Easy

 Assistance with GST Filing

 Remote Access
Shortcuts
• Categorization of the Shortcut Keys in Tally.ERP 9
• Shortcut Keys to Select Voucher Types
Shortcut Keys To Use While Passing a Voucher Entry
Shortcuts to Use While Generating Reports
Shortcut Keys Related to GST
 Tally ERP9

CREATION AND ALTERATIONS OF ACCOUNT HEADS

Creation and Alteration

01 02 03
YOU CAN CREATE A SINGLE CREATING A COMPANY IN
GROUP OR MULTIPLE TALLY. ERP 9 IS A SIMPLE, Suppose, you have created a
GROUPS IN TALLY. ERP 9 AND ONE-TIME ACTIVITY. THE company in tally ERP 9, and
CONFIGURE THE DETAILS AS COMPANY DATA CREATED you committed some mistake,
PER YOUR REQUIREMENT. CAN BE MODIFIED,
YOU CAN ALSO VIEW, ALTER EXPORTED, AND OTHER
or you want to alter the
OR DELETE THESE GROUPS. COMPANY DATA CAN BE structure of the company then
IMPORTED INTO YOUR it can be done very easily. 
COMPANY AT ANY GIVEN But do very carefully because
POINT OF TIME. creation or alteration of
company in tally is the
framework of all accounting
transactions or reports.
Introduction to company creation
The first and foremost thing to do when we start accounting with tally is to know how to
create a company in Tally ERP 9. If you are operating multiple businesses, you can
create several companies in Tally ERP 9 software at a single cost.

Steps Actions Instructions to be followed

Step 1 To open Tally Software Double click on tally icon from your
desktop.
Step 2 To go to Create Company Screen To do this Select Create company
from the Company Info. Menu using
up and down arrow key and press
Enter Key.

Step 3 To fill up the Details in Company In this company creation screen, you
Creation Screen should enter all the details of the
company that you been asked for.        
To create the account heads in tally, you he to follow the following procedure:-
 

To create the account heads in tally, you must

follow the following procedure:-
First, open tally.erp9 program.
Now, select the company in which you want
to work. We shall select M/s XYZ Limited.
Type the password if any.
Now, you are on ‘gateway of tally’
Select – Accounts Info under Master.
Journal
A journal is the book of original entry or prime entry in which transactions are recorded from the books of accounts
from the source documents. The transactions are recorded in a chronological order i.e., as and when they take place.
The transactions are recorded following the double-entry system of accounting.

Journal Voucher in Tally.ERP 9

Journal voucher in Tally is an important voucher which is used to make all kind of adjustment entries, credit
purchases or sales, fixed assets purchase entries. In order to pass entries as journal voucher, we must press “F7”
shortcut key from accounting Voucher screen on Gateway of Tally.

In total there are 18 vouchers which we already see in Tally software, which is divided into two parts:
•Accounting Vouchers
•Inventory Vouchers
And under Accounting Voucher there are already 10 nos. of ready to use Accounting vouchers one among which is
Journal voucher.
Purpose OF Journal Voucher in Tally
• This voucher is used for all adjustment or due entries in tally software, or in other words entry which
is not made by other accounting vouchers are made by this voucher.

• We use Journal vouchers in Tally for different scenarios listed:

For journalising Outstanding Expenses, To record prepaid expense, To recognize accrued income,
Accrued Income, For Transfer entries, For correcting wrong entries passed in the books of accounts.
Steps to Enter a
Journal Entry in Tally

Journal entries in Tally are

bye- passed through journal
vouchers. The shortest route for
accessing journal voucher in
accounting voucher menu is F7.

To enter a journal entry in

Tally. ERP 9 follow these simple
steps:
Select ledger. Now screen shall appear as under:-
After you select the
ledgers, there are
two options for
creating the ledgers
as shown in
following image:-
Alter a Group

The details entered in a group can be modified Delete a Group

when required. Groups can be deleted from the alteration screen. You
cannot delete groups from the Multiple group Alteration
mode.
1. Go to Gateway of Tally > Accounts Info. >
Groups > Alter ( under Single Group ) .
1. Go to Gateway of Tally > Accounts Info. > Groups >
Alter ( under Single Group ).
2. Select the name of the group required from the
List of Groups displayed. 2. Select the group from the List of Groups .

3. Click D : Delete .
3. Make the necessary changes in the Group
Alteration screen.
4. Click Yes to confirm deletion.

4. Click Yes to save the changes.

A voucher is a document that is used
by the accounting department on an
organization or a business. Vouchers Accounting Vouchers in Tally Examples
are used for the systematic  Sales Voucher
compilation and collation of data in
the form of invoices, purchase order,
 Purchase Voucher
certificates, along with other  Payment Voucher
information required to process the  Receipt Voucher
payment.
 Contra Voucher
Vouchers can be majorly divided in  Journal Voucher
two categories, inventory vouchers,  Credit Note Voucher
and accounting vouchers in Tally
ERP 9. Under each category, there  Debit Note Voucher
are numerous different types
vouchers in Tally ERP 9 that the
accounting professionals use. Here is
an extensive list of some of the
accounting voucher in Tally
examples:
What is a Ledger and Why is it Defined as Principal Book of
Accounts?
Journal is a memorandum book to record transactions date wise.
On a particular date, what are total purchases, total sales,
debtors, creditors, incomes, expenses may not be known as
journal. And to get information about the above, the entries
passed in the journal are classified based on their nature in
another book which is known as ledger.

Utility of a Ledger
The ledger is a master record of all the accounts of a
business unit
It is a principal book of double entry system of accounting
which provides all important information
Creating Ledger in Tally ERP 9
 How many ways to create?

 There is a total of 2 major ways to create a ledger in Tally.

 One way is to create a Single Ledger

 Another way is to create it with Multiple Ledgers
 To create ledger from voucher screen by pressing ALT + C
 Explanation: When we need to create 1 or 2 ledgers, we can create it
with the help of the Single Ledger option. On the other hand, when
we need to create more ledgers, we can create it easily with the help
of an option called Multiple Ledgers.
 Trial balance
Trial balance is a statement summarizing
the closing balance of all the ledger
accounts, prepared with the view to verify
the arithmetical accuracy of ledger
posting. in trial balance, all the ledger
balances are posted either on the debit
side or credit side of the statement.

to view the trial balance go to

Gateway of tally>display>trial balance
Trial balance
Configuration, Ledger-wise, group wise
Export trial balance to Excel
Profit and Loss
Gateway Of Tally=> Profit& Loss=>
 Balance Sheet

1. Go to Gateway of Tally > Display > Balance Sheet .

2. Press F12 to configure the Balance Sheet .
3. Press Ctrl+A to accept.
Configure Balance Sheet

Go to Gateway of Tally > F12: Configuration > General. The System Configuration screen appears as shown below:

Show Vertical Balance Sheet
Balance Sheet to appear in vertical form, by pressing F12: Configure, and setting
the option Show Vertical Balance Sheet 
Show Percentages
Press Alt+F1 to view the detailed Balance Sheet . In Detailed mode, the Balance Sheet appears as
shown below:
Show Working Capital figures
Select F1 : Detailed from the button bar. The Balance Sheet with working capital figures appears as
shown below:
 Cash Flow in Tally.ERP 9
1. Go to Gateway of Tally > Display > Cash/Funds Flow > Cash Flow .
2. Press Alt+F2 , change the period - From: 1-4-2008 to 30-9-2008. The Cash flow statement is displayed as shown:
For Quarterly Cash Flow statement
Change Period by pressing F2: Period and set the period
 1. Go to Gateway of Tally > Display > Cash/Funds Flow >
Funds Flow .
2. 2. Press Alt+F2, change period - From: 1-04-2008 to 31-
8-2008. The funds flow statement is displayed as shown
below:

Funds Flow
Statement in
Tally.ERP 9
3. A Monthly Funds Flow
Summary with the movement of
working capital for each month is
displayed. It shows the Opening
and Closing Balances of each
month with a column for Funds
Flow.
4. Select a month and
press Enter to drill down.
5. Select F1: Detailed to see the
funds flow for the selected month
 Ratio Analysis Report
 Go to Gateway of Tally > Ratio Analysis . The Ratio Analysis screen is displayed as shown below:
•Inventory management refers to
the process of ordering, storing and
UNIT OF MEASURE
using a company's inventory. This
Inventory Info=> Units Of Measure=> Create
includes the management of raw
materials, components and finished
products, as well as warehousing
and processing such items. For
companies with complex supply
chains and manufacturing
processes, balancing the risks of
inventory gluts and shortages is
especially difficult
GST
•F11=>Accounting
Features=> Statutory and
Taxation
Stock Groups in Inventory
are similar to Groups in
Accounting Masters. They
are helpful in the
classification of Stock Items.
You can group Stock Items
under different Stock Groups
to reflect their classification
based on some common
features such as brand name,
product type, quality, and so
on. Grouping enables you to
locate Stock Items easily and
report their details in
statements.

•Inventory Info-> Stock Groups->Create(SingleStockgroup)

Sub-Group Creation

•Inventory Info->
Stock Groups->
Create(Multiple Stock
Groups)
F11 ->Inventory Features
Stock Category Creation
•Inventory Info=> Stock
Category=>
Create(Multiple Stock
Category)
Sub-Category Creation
•Inventory Info=> Stock
Category=> Create(Multiple
Stock Category)
 Stock Costing Methods
Tally. ERP 9 allows users to value stock in different methods. Each stock item can be set up to have a different stock
valuation method.
at Zero Cost
When Zero Cost valuation is selected, inventory will be valued at zero cost irrespective of the purchasing rate and current
balance at hand. This is extremely useful in sub-contracting environments, where material quantities need to be tracked
which are received from the principal, but which do not carry any monetary value with respect to our own books.
Average Cost Valuation
The average cost method assigns a cost to inventory items based on the total cost of goods purchased or produced in a
period divided by the total number of items purchased or produced.
First In First Out – FIFO
The value of the current closing stock is treated as a collection of the ‘residual’ stock working back from the last purchase,
until the Financial Year opening stock. It is assumed that the goods issued or sold currently are those which represent the
earliest purchased amongst the goods sold in inventory. This would mean that the goods which remain in stock after the
sales/issues are those which represent the most recent purchases.

Monthly Average Method of Stock Valuation

In the monthly average costing method, the closing value of each month will be treated as opening for the next month.
FIFO Perpetual
FIFO Perpetual is one of the stock valuation methods used for calculating closing balance of inventory in Tally.ERP 9. The inventory reports
use valuation methods in case of intra-year reporting.In this intra-year reporting, when books are closed at the end of a financial year, closing
balance is carried forward to next financial year. Thus inventory reports use the values from closing balance for reporting in the new financial
year.FIFO Perpetual valuation method helps in carrying forward balances based on actual purchase costs and it displays the cost/consumption
values in inventory reports of the new financial year accordingly.

Last Purchase Cost costing method

In the Last Purchase Cost costing method, the closing value of the stock item is calculated based on the rate of the last purchase

Last In First Out (LIFO) costing method

LIFO is one of the stock valuation methods used for calculating closing balance of inventory in Tally.ERP 9. It is further classified into two
methods, LIFO annual and LIFO perpetual, which are detailed in this topic.

LIFO ANNUAL
The stock items ‘last’ lot ‘input’ becomes the ‘first’ to get consumed, while the earlier/earliest lots remain unused under the current Financial
Year. LIFO Annual restricts the LIFO behavior to the present Financial Year and treats the Opening Stock as the ‘First Lot’.
LIFO PERPETUAL
The stock items purchased in Last LOT are sold FIRST. In Perpetual LIFO, the very first input into the system, even if it was 10 years ago (!)
gets treated as the ‘First Lot’.

Standard Cost Costing Method

Standard Cost can also be called as User Specified Rate. Once when Std Cost is specified (Std rate to be specified in the Inventory Master
screen), this rate is applicable for the current date irrespective of the price/cost of purchase/input.This type of valuation is used where the daily
variances of purchase are not expected to effect the value inventory. For example: Gold. When Standard Cost is chosen, the Batches and
Locations become irrelevant, and the entire inventory for this item is valued at Std rate.
Stock Item Creation
•Inventory Info=> Stock
Items=> Create
 Goods & Service Tax 2017 and tally
 In India, GST is an indirect tax that has replaced several
indirect taxes. On 29 March 2017, the Goods and Service
Tax Act was approved in Parliament. The Act entered into
force on 1 July 2017; India's Goods & Services Tax Law is
a complex, multi-stage, destination-based tax imposed on
any addition of value.
 There are currently three types of GST : CGST , SGST and
IGST
 Creating GST entries
 To crate GST ledger :
 Gateway of tally> Accounts info >
 Ledgers> single ledger (click to create) > Name the type of
ledger you want to create ( specify the type of GST ledgers
we want to create ) > ledger grouping should be selected >
fill details required > ctrl+ A ( to save)
To create supplier ledger , accounting voucher in item invoice
mode>fill details > create supplier ledger( Alt+ C) fill supplier details
, address, GST details > enter > yes to save Fill in purchase details>
where in specifying GST ledgers > and Ctrl+ V to save to see the
final entry .
 Auto-
calculation of
GST as
specified in
group level
Banking in tally : Cheque book printing
 An account statement or bank statement is a list of the financial transactions that have
taken place on a bank account owned by an entity or company with a financial institution
for a given time. over a period of time, there has been a shift towards paperless, electronic
statements, and some financial institutions offer direct download into account holders
accounting software.
 And the process of entering these entries based on account books, and supporting
vouchers in books of accounts and reconciling the same with bank entries as standing in
bank statements issued by bank marks the beginning of channelizing banking entries into
books of accounts which plays a vital role for every business and ERP machines serves as
an effective medium or source for journalizing or routing these entries into books of
accounts.
 Main features of tally in banking is :
i. Cheque printing
ii. Bank reconciliation
 Cheque printing

Accounts info. > Ledger>alter> select the bank ledger to be

modified > fill required details > select cheque book option >
1 2 cheque management screen > define range and fill other details >
Ctrl+A save it > cheque printing configuration > fill cheque
dimensions details > Alt+ P to print the sample cheque>click print
> to print the final cheque

4
 Bank Reconciliation Statement
Gateway if tally > Banking > Bank reconciliation statement > select bank account ledger > reconciliation screen > F2 to change
period > Alt+C for creating voucher > click 'yes' to save the reconciliation done > fill accounting voucher details > Ctrl + A to
save> click on 'yes' to see the reconciliation reflected in the screen > alter the bank details for reconciliation in the reconciliation
screen configuration > 'yes' to accept > 'ctrl + A' to save the statement

 Reconciliation of
the bank statement
is required when the
balance as per our
record does not
match with that of
bank’s record pf
transactions and is
required to be
reflected correctly.
After Reconciliation
 Payroll
WHAT IS PAYROLL?
PAYROLL IS SIMPLY AN AGGREGATION OF TOTAL
AMOUNT OF WAGES PAID BY THE COMPANY TO ITS
EMPLOYEES

HOW DO WE PROCESS PAYROLL ACCOUNTS?

WHAT CHANGES DO WE SEE TODAY IN PROCESSING

OF PAYROLL SERVICES?
How to enable payroll feature in Tally ERP 9
Create pay heads for payroll system
THANK YOU