PROJECT REPORT

TALLY ERP 9

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.

Introduction
Reports play an important role for businesses to help manage
their day-to-day business operations efficiently. Understanding
this need, Tally.ERP 9 provides many insightful reports. Reports
in Tally.ERP 9 is designed to suit all the aspects of accounting
management, inventory managementand statutory.

Tally.ERP 9
Tally.ERP 9 is one of the most popular accounting software
used in India. It is complete enterprise software for small &
medium enterprises.

Tally.ERP 9 is a perfect business management solution and GST

software with an ideal combination of function, control and in-
built customisability.

Tally.ERP 9 permits business owners and their associates to

interact more in accounts related discussions and is a complete
product which retains its original simplicity yet offers
comprehensive business functionalities such as Accounting,
Finance, Inventory, Sales, Purchase, Point of Sales,
Manufacturing, Costing, Job Costing, Payroll and Branch
Management along with compliance capabilities for Excise,
TDS, TCS, and now GST too

Tally ERP 9 and its features

The features of Tally are as follows: Tally is largely considered

the best because it is easy to use, has no codes, robust and
powerful, executes in real-time, operates at high speed, and
has full-proof online help. Tally is also called multi-lingual
tally software because Tally ERP 9 supports multi-languages
 1. Tally ERP 9 lets you create unlimited companies and
regulate all of them from a single system. It allows you to
access your business data from anywhere. You can
manage your multiple stores or businesses, from your
device. If your companies are working at two or more
locations simultaneously, you can synchronize the data
easily with the help of the Tally-Tally Sync option.
2. You can generate data from anywhere and customize it
according to your own needs. Tally can fetch data from all
the locations and create a consolidated report without
disturbing any of your operations at any site.
3. Tally ERP 9 comes with TallyVault, a feature that
safeguards all your valuable financial data. It generates
the keys for yourself and only gives you access for it. Tally
ERP 9 is a robust software, which can never lose your
data or even get corrupted even in the most unstable
situations. Tally configures user-level rights for the access
of data depending on the designation.
4. Tally is incredible for your business, as it not only provides
services to new users, but it also helps you to transfer
your data from your existing accounting software and
continue working without a glitch. Tally ERP 9 setup is as
effortless as your regular software installation. On Tally
ERP 9 software purchase provides a walkthrough guide for
new users to get acquainted. With its incredible flexibility,
Tally ERP 9 GST software shouldn’t be skipped

Fundamentals of Tally.ERP 9

Lesson Objectives
On completion of this lesson, you will be able to understand
Salient Features of Tally.ERP 9
Key Components of Tally.ERP 9
How to start and exit Tally.ERP 9
Setting up a company in Tally.ERP 9
Working with companies in Tally.ERP 9

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-todate 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, Multi-lingual, Data
Synchronization and Remote capabilities help you simplify all
your business processes easily and cost-effectively.

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 between accounting and
accounting with inventory. 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 to any business need. Tally.ERP 9 users need not change
the way their business is run to adapt to the package. Speed :
Tally.ERP 9 provides the capability to generate instant and
 accurate reports, which assists the management to take timely
and correct decisions for the overall productivity and growth of
the company.
Power : Tally.ERP 9 allows the user to maintain multiple
companies and with unlimited levels of classification & grouping
capabilities. It also allows drill downfacility from report level to
transaction level.

Flexibility : Tally.ERP 9 provides flexiblity 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 multi-lingual capability :
Tally.ERP 9 offers you the exclusive capability of maintaining
your accounts in any Indian language, viewing them in another
language and printing them in yet another Indian language.

Real time processing : Immediate posting & updation of

books of accounts as soon as the transactions are entered,
thereby facilitating instant statements & Reports. It also
faciliaties 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 Windows 95, 98, ME,
2000 and NT. It runs on a single PC or on a network. On a
network, it supports access via any.

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
recognised 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 computerised 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.

Create Professional looking GST compliant Invoice

in seconds
It's simple to create, print and e-mail a professional looking
invoice in a few seconds. Fully flexible to configure the information
in the invoice, add your logo etc. according to your preferences.

Built with intelligence to automatically generate different types of

GST invoices like Tax Invoice, Bill of Supply and generate e-Way
bills without having to re-enter details in the e-Way Bill portal.

Flexible Purchase and Sales Management

Tally.ERP 9 is designed with complete flexibility to suit different
purchase and sales processes, followed by the business. Be it
purchase or sales orders, debit or credit notes, keep your books
up to date with Tally.ERP 9.

Multiple Billing Format

Tally.ERP 9 supports different billing formats to suit your business
needs. Whether you deal with Products or Services, you can
choose a suitable invoice format for faster billing.

Basic Guide to use Tally ERP 9. Release 6 for GST

With the GST implementation, various accounting
software such as ClearTax and Tally are available to help you
prepare your books in alignment with GST rules. In this article,
we will guide you how to use Tally ERP 9. Release 6 for GST.
You can also integrate your Tally ERP 9 solutions with ClearTax
GST.

In order to use Tally, following steps must be followed:

1. Create a company
2. Enable GST features
3. Ledger creation

Let’s discuss the above in detail:

1. How to create a company

 Go to Gateway of Tally > Alt + F3 > Create Company
 Enter the basic information, i.e., name, mailing name and
address of the company, currency symbol etc.
 In the ‘maintain field’, select Accounts Only or Accounts
with Inventory as per the company requirements.
 In the Financial Year from, the first day of the current
financial year for e.g., 1-4-2017 will be displayed by
default, which can be changed as per requirement.
 Enter the Tally Vault Password if required.
 Press Y or Enter to accept and save.

2. Enabling GST features in Tally

1. Go to Gateway of Tally > F11: Features > F3: Statutory &

Taxation
2. In the screen you will find following options :
3. Enable goods and service tax (GST): Yes

Set/alter GST Details: Yes.

 This will display another screen where you can set GST
details of the company such as the state in which
company is registered, registration type, GSTIN number
etc.
  Press Y or Enter to accept and save.

Ledger Creation
After creating a company and activating GST features, you
need to create ledgers that will enable you to pass accounting
entries in Tally.

Here are the following steps :

 Go to Gateway of Tally > Accounts Info > Ledgers >

Create
 Enter the Name for the ledger you want to create such
as purchase, sales, state tax, central tax, integrated tax,
stock item names etc.
 Select the appropriate group to which such ledger belongs
for example state tax under duties and taxes group.
 Enter the other related information required and press Y
or Enter to accept and save.

After having done the above 3 steps, you can start entering
accounting entries in Tally. For this, Go to Gateway of Tally
>Accounting Vouchers. There are many accounting Vouchers in
Tally such as Payment, Receipt, Contra, Sales, Purchase, etc.
Choose the relevant Voucher and start passing the accounting
entries.

You can also easily create GST compliant invoice

using ClearTax Bill book. In case you want assistance only in
terms of filing returns, then also you can use ClearTax GST.
This software easily integrates with Tally, Excel & other
accounting software. You can import invoice level data for
Sales & Purchase in the ClearTax software and then it will
calculate the data points to be filled on various GSTR  forms
like GSTR-1, GSTR 3B… It automatically populates all the data
& performs a validation check to make sure the return is error
free. You can download our Desktop App for filing GST Returns
from Tally in a single click!
Key accounting reports in Tally.ERP 9 for
businesses are Balance Sheet in Tally.ERP 9

The Balance Sheet gives a complete glance at the financial

position of a business. The Balance Sheet in Tally.ERP 9 shows
the assets and liabilities of a company. From the Gateway of
Tally screen, a business owner can access the Balance Sheet.
The Balance Sheet can be configured using F12 configuration in
Tally.ERP 9. Tally.ERP 9 also offers Schedule VI Balance Sheet
for businesses. The Balance Sheet can be viewed for any given
dates. Multiple valuation types are given for defining stock
valuations such as FIFO, LIFO, Average Cost, Average Price
and many more.

Profit & Loss Account in Tally.ERP 9

The Profit & Loss report in Tally.ERP 9 shows a company’s
net profit or loss in a given period. By default, this Tally report
considers the period starting from the date when the books
begin to the entry date of the last voucher. The Profit & Loss
report in Tally.ERP 9 can be configured with F12 configuration
available within the report. A business owner can see Schedule
VI Profit & Loss account or P&L statement in a vertical format
based on the requirements.

Cash Flow/Fund Flow Report in Tally.ERP 9

The Cash Flow report in Tally.ERP 9 has been provided to

help get a view of cash inflow and outflow during an accounting
period. This report makes it easy for business owners to
understand the cash flow situation for a specific period and
helps make decisions.

Similarly, the Fund Flow report in Tally.ERP 9 provides details

on the sources of funds and their net flow status on a monthly
basis.

Ratio Analysis Report in Tally.ERP 9

 The Ratio Analysis report is a powerful report for financial
analysis in Tally.ERP 9. The multiple ratios in the report give a
clear understanding of the financial position of a business.
These are Debt Equity Ratio, Quick Ratio, Return on Working
Capital, Return on Investment and so on. This is one of the key
Tally reports.

Outstanding Report in Tally

A business owner can see receivables ledger-wise and bill-

wise in Tally.ERP 9. He can see ageing analysis which can be
applied based on due dates or as per the bill dates. Based on
the time that has passed (ageing), a business can accordingly
connect with parties or manage funds to make payments. With
the bill wise ageing details, the user can see and understand
the details of bills for which payment is pending.

Inventory Reports in Tally.ERP 9

Stock Summary Report in Tally.ERP 9

The Stock Summary report displays the current position of

stocks or stock in hand for a particular date. From this Tally
report, a business owner can view item-wise rates, quantity
and value of stocks available. The Stock Summary report in
Tally.ERP 9 also enables business owners to view gross profit at
each item level based on landing cost and sales price. It also
shows the status of stocks available across various godowns.
The user can see the net stock position by considering
purchase and sales orders which are yet to be processed.

Stock Ageing Analysis Report in Tally.ERP 9

This report in Tally.ERP 9 helps businesses understand

their slow moving goods versus fast moving goods. This Tally
report helps business owners to make decisions based on
procurement of stocks, or whether to liquidate stocks based on
their age. Tally.ERP 9 gives the flexibility to define various
periods like 0-30 days, 31-60 days and so on based on
business requirement. Business owners can see stock
valuations as well from within this report.

Statutory Reports in Tally.ERP 9

GST Reports in Tally.ERP 9

In GST, Tally.ERP 9 provides GSTR-1, GSTR-2, GSTR-

3B and e-Way Bill related reports. The GSTR-1 report in
Tally.ERP 9 is designed exactly as the form of GSTR-1 to make
life easy for users.

Business owners can see -

 Details of transactions participating in GSTR-1

 Transactions not relevant for returns
 Transactions not participating because of incomplete
information or mismatches
 Serial number-wise details of values as mentioned in
GSTR-1

A user can navigate from any value up to the actual transaction

itself. Users can correct transactions under
Incomplete/mismatch in the Information section and allow
these transactions to participate in GST returns. This way, Tally
ensures that a user files the most accurate GST returns. A
similar experience is given for GSTR-2 and GSTR-3B.

E-Way Bill Reports in Tally.ERP 9

Tally.ERP 9 gives comprehensive e-Way Bill reports to make

life simpler for users. A user can view -

 Transactions which have been exported for e-Way Bills

 Transactions which are yet to be exported for e-Way Bills
  e-Way Bill details of all the transactions for which e-Way
Bills have already been generated.

Apart from all of the above mentioned Tally reports, there are
many more reports in Tally.ERP 9 all of which help businesses
to access their financial analysis in the easiest manner and take
quick business decisions.

How to use Tally.ERP 9?

Tally is nothing but accounting in digital format. Maintaining

accounts in manual books, we write accounting entries as debit
and credit. In Tally, we create entries the same way. So how
do we do it Tally then?

The entire thing could be pictured as the installation of any

machinery in the workplace.

Process 1: Installation : 
(Buying a machine, we first install it for using it)

Tally software can be purchased and downloaded from the Tally

website. We can download a 30-day trialversion if we are not
sure if we want to use it yet. Tally 9 is for Windows only. We
can also use Tally in Educational Mode, which allows you to
learn how to use the software without having to purchase a
license. Some features are restricted in this mode.

Process 2: Navigation :
(After installation is complete, we use it’s
hardware supports or software supports to use
the machine)

Tally.ERP 9 is designed to be navigated by using the keyboard.

While we can click any option we want, everything in Tally has
a keyboard shortcut. The Shortcut as we say is usually the key
displayed next to each available option. Learning how to get
around with the keyboard will increase efficiency.

Process 3: Create a Company : 

(After we get some idea about the machine, we
set the program for it to work )

To use Tally, we will first need to create a company in the

program. Even when we are not using tally professionally, we
still need to create a company using the following steps :

Step 1: In the opening menu, select "Create Company"

Step 2: Enter Company details :

Enter the company name as it appears on banking records

Enter the company address, statutory compliance, telephone

number, and email

Step 3: Turn on "Auto Backup" to ensure that a copy of all your

work is saved in case something happens to the original.

Step 4: Choose your currency

Step 5: If you are using Tally to just manage your accounts,

then select "Accounts only" in the Maintain menu and If you
are using Tally for inventory management as well, select
"Accounts with inventory".

Step 6: Enter the start of your financial year and the start date
for the books

Process 4 : Usage:
(Now since we were going to use the machine, it
becomes important to first learn about the
machine's usage)

Operations How to use Tally.ERP 9 in Detail

Creating Ledgers Understanding what ledgers are for:
Ledgers in Tally record all of the
transactions for that account. One will
need to create a ledger for each
account that they do business with.
Two ledgers are included in Tally by
default: "Cash" and "Profit and Loss
Account". We can create as many
other ledgers as we need. How to?

Step 1: Open Create Ledger window

by following the given direction:
Gateway of Tally > Account’s Info >
Ledger > Create

Step 2: Select the group. Here we will

be required to select as to which
group the ledger will be assigned to.
Choosing the right group is
important, as it will affect how
numbers and sales are totalled later

Step 3: Give the ledger a name.

Enter a name for your ledger to know
what the ledger contains in it without
having to open it

Step 4: Enter an opening balance (if

any).For Example: If you are creating
a ledger for your bank account, this
would be the amount currently in it.
If you are starting a ledger for the
amount owed to a Vendor, the
amount you owe would be the
starting balance
Creating Vouchers Understand the purpose of vouchers: 
It is a document that contains the
details of a financial transaction.
These are used for all aspects of a
business, from sales to deposits.
Tally.ERP 9 comes with several of the
most popular types of vouchers pre-
configured for usage. How to create
different vouchers? Step 1: Open the
vouchers screen using the following
direction: Gateway of Tally >
Accounting Vouchers

Step 2: In this step, we can choose

the voucher we want to create. Here’s
is the list :

F4: For recording money

Contra : deposited into or
withdrawn from the
bank, or for recording
any sum transferred
between two accounts in
the same company.
F5: This voucher is used for
Payment payments made by the
business.
F6: For recording any
Receipts income earned by the
company (sales, rent,
interest, etc.) and for
recording the proceeds
received from Sundry
debtors.
F7: For recording all
Journal adjustment or due
entries such as prepaid
expense, accrued
income etc., For
recording purchase of
assets for recording
Input tax reversal
entries, reverse charge
 entries under GST
F8: Sales This is used for
recording all the sales
made by the company
F9: This is used for
Purchase recording all the
inventories purchased
by the company in the
course of business.
Step 3: Enter the required
information.
The information needed to complete
the voucher will vary depending on
the type of voucher we want to
create. We will have to typically need
to determine which ledger the
voucher will be attached to, as well as
enter the date and names of any
involved parties.

Tally.ERP 9
Tally.ERP 9 is preferred by millions as their business
management software across the globe. It dynamically
adapts to the way you operate your business and helps you
simplify your business operations.
Tally.ERP 9 provides you with exceptional capabilities that
will simplify the way you manage all critical aspects of your
business, including accounting, sales and purchase,
inventory, manufacturing, taxation, payroll, MIS reporting,
and much more.

 Accounts
 Taxation
 Banking
 Sales Management
 Purchase Management
 Payroll Management
 Manufacturing and Job work
 Inventory
 Internet
 Data Exchange
 Data Security
 Miscellaneous


Accounting in Tally.ERP 9
Accounting or book keeping is an important aspect of running
a business successfully. Tally.ERP 9 provides simple-to-use
accounting features that enable you to record business
transactions easily.
Accounting Features
Accounts Information
F11: Features
F12: Configure options
Accounting Features
You can record transactions necessary for your business by
creating and maintaining masters, vouchers, and generating
reports. Tally.ERP 9 enables you to perform and manage all
of the major accounting operations in your business, such as:
● Booking-keeping of all transactions, including creating
and maintaining invoices
● Maintaining bill-wise payment information
 ● Processing transactions for banking, including cheque
management and reconciliation
● Managing cost and profit centres
● Implementing statutory and interest calculations
● Viewing Balance Sheet, and profit and loss account
You can get started with Tally.ERP 9's accounting features
instantly to:
● Create your company and masters (bank ledgers, party
master, cost centre ledgers or employee ledger), as
required.
● Configure your company for any statutory or other
business requirements.
● Record voucher transaction with entering details of your
product or service.
● View reports to know the financial status of your
business.
Accounts Information
The accounts information lists accounting masters
like groups , ledgers and voucher types with which you can
provide company's account details. Accounts information
provides:
● Single master option to work with one master at a time.
● Multiple masters option to work with many sub-masters
at a time. A sub-master behaves exactly like a master.
To view the menu options, go to Gateway of Tally > Accounts
Info. Accounts information for ledgers, groups or voucher
have the following functions:
Functio
Description
n

Create To create new masters.

Display To view the

m aster information. Master
information cannot be modified in
 the display mode.

To view and make changes to the

Alter master information. You cannot
create masters in the alter mode.

F11: Features
1. Go to Gateway of Tally > F11: Features > F1:
Accounts.
2. Select the company from the List of Companies .
The Accounting Features screen appears as shown
below:

F12: Configure Options

● Go to Gateway of Tally > F12: Configure > Accts /
Inventory Info. The Master Configuration screen
appears as shown below:
Statutory and Taxation - India
ally.ERP 9 supports the various taxes applicable in India, and
VAT for GCC and Kenya . You can maintain accurate books of
accounts and generate error-free returns by detecting the
missing information in the transactions, if any, and correct
them before filing returns.

To experience the features provided for statutory and

taxation in Tally.ERP 9, you have to:
● Configure masters
● Record transactions
● Generate and file returns

Goods and Service Tax (GST) is an indirect

tax introduced on July 1, 2017 to bring
GST
about uniform tax rates on goods and
services.

Value Added Tax (VAT) is the tax levied at

every level of value addition made to a
India
stock item. The tax paid for acquiring the
VAT item is allowed as Input Tax Credit. On
selling this item, the VAT payable to the
department is adjusted against the tax
credit, and only the balance amount is paid.

Excise Excise duty is an indirect tax charged on

 goods produced within the country. The
following taxation structure of excise is
supported in Tally.ERP 9:
● Excise for Manufacturers
● Excise for Dealers
● Excise for Importers

Tax Deducted at Source (TDS) is an indirect

tax and a means to collect tax at the
TDS
prescribed rates from various sources of
income.

TCS is the Tax Collected at Source by the

seller (collector) from the buyer/ lessee
TCS (collectee/payee). The goods are as
specified under section 206C of the Income
Tax Act, 1961.

Service tax is a tax levied by central

Service
government on services provided. The
Tax
service provider is liable to pay service tax.

Setting Up Banking Features

Tally.ERP 9 provides the default banking features required to

record payment transactions. By using F11: Features , you
can modify the default settings for banking features of your
company depending on the business requirements.
1. Go to F11 : Features > F1 : Accounts . The Company
Operations Alteration screen appears as shown below:
2. Enable Set/alter transaction types . Include or exclude
the required transaction types based on your business
needs. The Cheque , e-Fund Transfer ,
and Others options are enabled by default. The Alteration
of Transaction Types screen appears as shown below:

3. Enable Set/alter post-dated transaction features . Click

the bank name from the List of Banks which you want to
be listed as notional banks to support post-dated
transaction options.
4. Enable Set/alter banking features .
 ● Enable beneficiary code - Enabling this option allows
you to add the beneficiary details in the ledger. This
feature is available only when you create bank ledgers
with e-payments enabled.
● Enable bank details for cost centre - Enabling this
option allows you to make cost centre payments
through the bank.
● Export/upload payment instructions on voucher
creation - This option allows you to export payment
instructions directly from the voucher if you provide the
necessary payment details during voucher creation.
● Ignore transactions with information mismatch - Enable
this option to ignore transactions in which bank details
entered are different from the masters.
Sales Management in Tally.ERP 9
Tally.ERP 9 helps you to effectively and efficiently manage
your sales, perform quick and easy invoicing, manage
returns and rejections, and track your sales. You may first
receive goods, then your invoice, and then raise the orders;
irrespective of the sales process - tracking of sales is
feasible.
You can support your business decisions with accurate sales
information, thus increasing operational efficiency. From
preparing invoices to maintaining your overall sales, you can
use Tally.ERP 9  for:
● Invoicing
● Order processing
● Managing prices
● Viewing invoice-wise profitability
● Maintaining sales registers
● Managing credit notes

Sales of Goods and Services

Every business involves sales of goods or services. The sales
transactions in your business may be a simple cash sales, or
even sales on credit. For each sales transaction, you will need
to keep a record of the items that you sold, the payment that
you received, goods returned, and so on. The invoice also
serves as a proof of the purchase made by the buyer. Using
Tally.ERP 9, you can do all of these and more. Moreover, you
can view reports any time you need to understand the sales
performance of your business.
Generate sales bills : Record a cash bill or invoice when
the buyer makes an instant payment using cash or any other
mode, like cheque or credit/debit card. If it is sales on credit,
record a credit sale by including the party.
Print invoices : For each sales transaction, the buyer will
require a copy of the invoice. At times, you may want to
include specific item or service details when you print the
invoice, such as configuration of a laptop, motor capacity of
an appliance, warranty offered on the item, and so on.
Additionally, the buyer may ask for delivery of goods to a
specific location. Therefore, you will need to print the
delivery address separately on the invoice. Tally.ERP 9
handles all such invoicing needs and more.
Record additional charges, discounts, and free items :
Your sales transaction may also include additional expenses,
such as transportation charges, insurance, discounts, and
taxes. Depending on your business practice, you may need
to apply discounts on each item or on the total invoice
amount. Similarly, if you give free items to your buyers at
times, or send samples to a customer, all of these can be
recorded and tracked in Tally.ERP 9.
Reports : You can track all the sales bills recorded in
Tally.ERP 9 using different reports, such as Sales Register,
Day Book, and so on. You can view your sales across
different periods, filter the data for specific details, configure
the reports to view more sales-related details and more.
On this page
● Record Sales of Goods and Services
● Print Sales Invoice with Additional Details
● Change Ledger for Item Allocation
 ● Add Details of Items or Services to Print
● Specify Separate Buyer and Consignee Details
● Sales with Additional Charges
● Sales with Discount
● Sales with Free Items
● Track Credit Bill-by-Bill
● Manage Credit Limit
● Round Off Invoice and Ledger Values
● Receive Money Against Sales
● Sales Against Advance Receipt
● Record Sales of Goods Dispatched
● Reports | Know Your Sales

Purchase Management in Tally.ERP 9

With Tally.ERP 9, you can manage your purchases efficiently

by creating purchase records, generating expense reports,
and making updates to purchase records as and when
needed.
Using Tally.ERP 9, you can:
● Maintain purchase invoicing
● Process purchase orders
● Reorder stock levels
● Track item-wise and batch-wise purchase details
● Track additional cost of purchase and debit notes
● Maintain purchase registers

Payroll in Tally.ERP 9
Tally.ERP 9 offers various features that allows you to
implement and process payroll. You can use the Payroll
Info. menu to create different payroll masters required for
computing earnings and deductions for employees.
Features
Payroll Info. menu

Features
● Full integration with accounts for simplified payroll
processing and accounting.
● User-defined classifications and sub-classifications for
comprehensive reporting on aspects such as
employees, employee groups, pay components, or
departments.
● Support for user-defined Earnings and Deductions Pay
Heads.
● Flexible and user-defined criteria for simple or complex
calculations.
● Unlimited grouping of Payroll Masters.
● Support for user-defined production units such as
attendance, production, or time based remuneration
units.
● Flexible processing period for payroll.
● Comprehensive reports for cost centre as well as
employee-wise costing.
● Predefined processes for accurate and timely salary
processing, employee statutory deductions & employer
statutory contributions.
● Processing payments using the e-payments capability in
Tally.ERP 9.
● Auto-fill facility to expedite the attendance, payroll and
employer's contribution processes.
● Accurate computation and deduction of statutory
payments such as Income Tax, ESI, EPF, NPS,
Professional Tax, and Gratuity.
 ● Generate statutory forms and challans for Income Tax,
EPF & ESI, as prescribed.
● Facility to drill-down to the voucher level for any
alteration.
● Compute arrears of previous period(s).
● Track loan details of employees.

Payroll Info. Menu

You can use the Payroll Info. menu to create various payroll
masters required for computing earnings and deductions for
employees.
You can create the following to maintain payroll:
● Employees
● Employee Groups
● Employee Categories
● Payroll Units
● Attendance/ Production Types
● Pay Heads
● Salary Details
● Income Tax Pay Head Configuration
● Income Tax Declarations
● Override Income Tax Exemption Value
● Override Income Tax Value
● Income Tax Configuration
● Previous Employer Details for Income Tax
● Payroll pay heads - Salary, PF, ESI, NPS, PF Admin
Expenses

Introduction to Job Work

In real business scenarios, it may not be possible for an
industry to carry all processes leading to the manufacture of
a final product within its own premises. In such an
eventuality the manufacturing unit will have to get the work
done i.e. processing of the raw materials or intermediate
product from outside. The processes performed outside are
called Job Work .

Definition Given under Excise

In the context of the Central Excise law, Job Work has been
defined under Rule 2(n) of the Cenvat Credit Rules,
2004. Here, Job Work means processing or working upon raw
material or semi-finished goods supplied to the job worker,
so as to complete a part or whole of the process resulting in
the manufacture or finishing of an article or any operation
which is essential for aforesaid process.
Looking at the above definition we can say that Job
Work or Sub Contracting is an activity of taking an order to
manufacture or process goods as per the prescription of the
client by utilizing material supplied by the client or purchased
on behalf of the client and charging him for the services
provided as Job Work or Sub Contract.
Job Work or Sub contracting is also a part of trading
business , maybe not as large as in the case of
manufacturing. In our day to day life we might have
experienced this.
Many manufacturing industries fall under the purview of
Excise however few are still exempted from Excise like in the
case of Garment Manufacturing .
To know more, click the links below:

 Introduction

 Job Work and Excise

Job Work
 Enabling Job Work in Tally.ERP 9

 Creating Masters
  Job Work Out Process (Transactions and

Reports)

 Job Work In Process (Transaction &

Reports)

 Job Worker and Principal Manufacturers

and Ledgers

 Voucher Types - Material Out and In

 Stock Items - Finished Goods

 Stock Items - Scrap/By-Products/Co-

Creating Products
Masters
 Stock Items - Raw Materials

 Job Work Out Transactions

Job Work Out
Process
 Job Work Out Reports

Job Work In
Process
 Job Work In Transactions
  Job Work In Reports

Inventory Information
The Inventory Info menu, lists the inventory masters like
Stock Group, Stock Items, Units of Measure of the company,
using which you can create, alter and display the inventory
master details.
By using F11: Features , you can enable the various
settings under inventory features which determine the
information to be entered during transaction entries.
By using F12: Configure , you can enable the required
settings of Inventory Masters .
By default, the settings pertaining to Inventory Masters are
set to No . If you set them to Yes , the features will be
enabled. Typically, they are additional fields that appear
during Masters creation which enable you to obtain more
information and detailed analyses.
To know more, click the links below:
● Stock Groups
● Stock Categories
● Stock Items
● Units of Measurement
● Bills of Materials
● Batches & Expiry Dates
● Stock Journal Voucher Class

Inventory Vouchers
Inventory Vouchers perform the function in the inventory
system that accounting vouchers do in the accounting
system. Inventory Vouchers are also means of entering
transactions. Accounting vouchers will update only Accounts,
but Inventory vouchers will update both Accounts and
Inventory. Inventory vouchers record the receipt and issue of
goods/stock (Movement of goods), the transfer of stock
between locations and physical stock adjustments.
If you have not integrated accounts with inventory, inventory
vouchers will not have any impact on the Balance Sheet
stock figures. The stock balances will be maintained
separately.
● Set the option Integrate accounts and
inventory to Yes in F11: Features > F1: Accounting
Features/F2: Inventory Features .

You can trace a transaction from the beginning i.e., goods

transfer stage to the financial accounting stage irrespective
of integration status.
For example, the purchase of stock can be tracked from the
purchase voucher through the receipt note, through invoice
from the supplier and also through eventual payment.
 E-mail and Upload
Exchange of information between computers is the most
common feature in any organisation. Such exchanges
constitute publishing a report or a document on the
internet/intranet or mailing of data. All this can be
accomplished by using the e-capabilities feature of Tally.ERP
9.

Requirements

1. Internet Connection, preferably a broadband connection

2. An e-mail account to use the e-mail feature of Tally.ERP
9
3. A URL with permission to upload files
Click the following links for more information:
● E-mail a Report from Tally.ERP 9
● Mass Mailing
● Uploading reports generated from Tally.ERP 9

Data Exchange
Data synchronization, Multiple format for reports, XML
compatibility, Tally ODBC
Data Security
Secure connectivity, Secure transmission, Secure storage,
Secure application access, TallyVault

Additional Benefits of Using Tally.ERP 9

Tally.ERP 9 facilitates basic accounting operations and also

provides the flexibility of doing a host of other tasks that
support your business operations. This business management
software has been designed to cater to a wide range of
business scenarios.
Tally.ERP 9 boasts of a variety of useful features, including
● Multi-currency
● Splitting and merging of company
● Auto-voucher numbering
● Alternate and compound units of measure
● Percentage based reporting
● Flexible date-based and multi-account reporting

Company in Tally.ERP 9
Tally.ERP 9 provides you with capabilities that will simplify
the way you manage all aspects of your business, such as
accounting, sales and purchase, inventory, manufacturing,
taxation, payroll, MIS reporting, and much more. To get
started, you will first need to create a company in Tally.ERP 9
and then record your day-to-day business transactions. To
create the company, fill in the company name, contact
details, financial year - and you are all set!
Maintain day-to-day transactions: Once you create your
company in Tally.ERP 9, you can enable the required options
that suit your business preferences and start recording your
transactions. As and when you save your transactions, the
corresponding business reports are generated and updated in
real time. As your business grows, you can enable other
options, as per your needs. All the company information and
business transactions that you maintain in Tally.ERP 9
remain safe. If you want to allow only a few individuals to
access your company information, you can set up additional
security to access records of your business transactions.
Stay connected from anywhere: When you are travelling
or meeting your clients at a location away from your office,
access your business transactions through the company in
Tally.ERP 9. That means, you can connect to your company
and access the data without being physically present in your
office. You can view existing transactions, pass new
transactions, and view all your reports by using the Remote
Access feature in Tally.ERP 9.
Multiple companies and group company: Do you have
more than one business? If so, you can create more than one
company and manage your transactions as you want. To
assess the performance of all your companies, you can also
create a group company in Tally.ERP 9 and get a
consolidated view of their financial position. Thus, it becomes
easy to measure the health of your business across
companies. The consolidated data from a group company is
useful especially at the end of a financial year, where you
can get a summarised view of the total income, profit, and so
on.

● Set Up Your Company

Company
● Group Company

Remote
● Use Tally.ERP 9 Remotely
connectivity

F11: Company ● Set Business Preferences |

Features Company Features

F12: Configuration ● Printing

● General
● Numeric Symbols
● Accounts and Inventory Info
● Voucher Entry
● Invoice or Orders Entry
● Banking Configuration
● Data Configuration
 ● Advanced Configuration
● Product & Features
● Licensing

Accounting

Groups
Groups are collection of ledgers of the same nature. Account
groups are maintained to determine the hierarchy of Ledger
Accounts, which is helpful in determining and presenting
meaningful and compliant reports. Using this you can
generate reports, which are meaningful as well as compliant
with laws.
At the highest level, accounts are classified
into Capital or Revenue – and more specifically
into Assets , Liabilities , Income and Expenditure .
Tally.ERP 9 provides you with 28 pre-defined Groups . Of
these 15 are Primary Groups and 13 are Sub-
Groups . You can also create your own groups, either
as Sub-groups or Primary groups . Groups can be sub-
classified to an unlimited level to give a virtual accounting
tree. The lowest level would be the Ledger Account.  All
Voucher entries are passed using ledgers. You can create the
required chart of accounts. You can group the Ledger
accounts under the required Groups at the time of creating
the chart of accounts or you can alter them at any time.
Tally.ERP 9 has pre-defined ledgers for Cash (under Cash-in-
hand group) and for the Profit & Loss A/c (under primary
group).

Create, Alter, Delete Ledgers

A ledger is the actual account head to identify your
transactions and are used in all accounting vouchers. For
example, purchase, payments, sales, receipts, and others
accounts heads are ledger accounts. Without a ledger, you
cannot record any transaction.
Predefined Ledgers
Create ledgers one-by-one
Display, Alter and Delete Ledgers
Button options in Ledger master
Current Liabilities and Current Assets Ledgers
Tax Ledger
Rounding method
Expenses and Income Ledgers
Enter Mailing Details for Ledger Accounts

Predefined Ledgers
All ledgers have to be classified into groups . These groups
and ledgers are classified into profit and loss or balance
sheet.
There are two pre-defined ledgers in Tally.ERP 9:
● Cash ledger
● Profit and loss account

Bank Ledgers
Bank ledgers contain relevant information about a bank that
you use to make or receive payments. You can provide
information such as Bank name, Account no., IFS code, and
address while creating bank ledgers.
1. Go to Gateway of Tally > Accounts
Info. > Ledgers > Create.
2. Enter the Name of the bank for the bank ledger.
 3. Select Bank Account from the List of Groups , in
the Under field

Party Ledgers
A business deals with customers, wholesalers, retailers and
many such business parties on a day-to-day basis. You need
to create party ledgers to record transactions that you make,
which may involve receipts or payments, or supplies or
receipts from these parties.
Create party ledger
Cost Centre options
Statutory Information
Tax Information
Other Information
Purchase and Sales Ledgers
Purchase or sales ledgers are required for trading, repacking
or in manufacturing products. Sales and purchase account
groups are revenue accounts and are used in the profit and
loss account.
1. Go to Gateway of Tally > Accounts
Info. > Ledgers > Create .
2. Group it under Purchase Accounts for purchases or Sales
Accounts for sales.
3. Select Yes for the option Inventory values are affected? if
your company maintains accounts with inventory.
The Ledger Creation screen appears as shown below:
To get the options for cost centre and interest calculation in
the Ledger Creation screen, you have to enable the following
options in set the option in F11: Features > Accounting
Features :
● Set Maintain cost centres to Yes . In the ledger master,
set the option Cost centers are applicable? to Yes i f
any of the transactions need to be allocated to any
particular cost center.
● Set Activate interest calculation to Yes to enable
interest calculation automatically based on the interest
rate and style of calculation specified.
● Set Use advanced parameters to Yes to enable the
advanced parameters for interest rates that change
from time to time.
Voucher Types
There are 18 different pre-defined voucher types pertaining
to accounting, inventory and payroll. When the payroll
feature is enabled, the number of pre-defined voucher types
is 20.
For example, the Cash Payment and Bank Payment vouchers
where the relevant predefined voucher is Payment Voucher.
You may have two or more sets of Sales Vouchers for
different kinds of sales transactions for example, credit sales,
cash sales, and so on.
If a voucher type is created, you can:
● Use different v oucher numbering methods.
● Give own prefix and suffix details for the voucher
numbering.
● Use the Effective Dates for the vouchers.
● By default, make some vouchers optional if required.
● Use c ommon narration or n arration for each entry .
● Automate the printing immediately after saving the
vouchers.
● Generate separate reports for each type of voucher.
Click the following links to know more about Creating a
Voucher Type :
● Create Sales and Manufacturing Journal Voucher Types
● Multi-User Auto Voucher Numbering
Click the following links to know more about Voucher
Classes :
● Purchase Voucher Class
● Sales Voucher Class (Inclusive of Tax)
● Voucher Classes for Payment, Receipt and Contra
Vouchers
● Voucher Class for Debit Notes and Credit Notes
● Payment Voucher Entry with Class
● Payroll Voucher Class
● Cost Centre Class
Cost Categories
Cost categories are useful for organisations that require
allocation of revenue and non-revenue items to parallel sets
of cost centres. Cost categories facilitate third-dimensional
reporting of expenditure and revenue. For example, region-
wise or geography-wise, Grade-wise, Department-wise, cost
categories.
You can use cost categories you can allocate, in parallel, a
transaction to more than one set of cost centres. For
example, Cost Centres such as Marketing, Finance and
Manufacturing can now belong to a category - Departments.
The Salesmen A, B, and C can be Cost Centres under a
Category - Executives.
Similarly, you can create a new Cost Category Projects under
which Cost Centres such as airport construction, road
construction and buildings may be created. The classification
appears as following:

Cost
Depart Execu Project
Categ
ments tives s
ories

Airpor
Sale
Marketi t
sma
ng Constr
nA
uction
Cost
Sale Road
Cent Manufa
sma Constr
res cturing
nB uction

Sale
Financ Buildi
sma
e ngs
nC

You can specify a Cost Category to allow allocation of only

revenue items or items of both revenue and capital (Non-
Revenue) nature.
By allocating expenses to parallel Cost Centres under
different categories, you are simply assigning the amounts to
them; the amount does not increase. Tally.ERP 9 performs
an automatic reconciliation on real-time basis, saving you the
effort of reconciling Ledgers and Cost Centres.
 Optional & Non-Accounting Vouchers
 Memorandum Voucher
 Optional Vouchers
 Reversing Journals
 Post Dated Vouchers

Memorandum Voucher
This is a non-accounting voucher and the entries made using
memo voucher will not affect your accounts. In other words,
Tally.ERP 9 does not post these entries to ledgers, but stores
them in a separate Memorandum Register.  You can alter and
convert a Memo Voucher into a regular voucher when you
decide to bring the entry into your books.

Making suspense payments

Vouchers not verified at the time of entry
Items given for approval
Memorandum Voucher Register
Making suspense payments
Consider that a company gives its employees cash to buy
office supplies, the exact nature and cost of which are
unknown. For this transaction you can enter a voucher for
the petty cash advance, a voucher to record the actual
expenditure details when they are known, and another
voucher to record the return of surplus cash.
However, a simpler way of doing it is to enter a Memo
voucher when the cash is advanced, and then turn it into a
Payment voucher for the actual amount spent, when the
details are known.
For example, the Company pays its employee Rs. 1000 as
petty cash advance for Office Expenses.
1. Enable the following option from F11: Accounting
Features
 2. Use Reversing Journals & Optional Vouchers.
3. Go to Gateway of Tally > Accounting Vouchers
> Select Ctrl+F10: Memos from the Button Bar or
click Ctrl+F10 .
4. Debit Office Supplies Account.
5. Credit Cash Account.

Vouchers not verified at the time of entry

If there is no clarity with the details of a voucher you are
entering, you can enter it as a Memo voucher and amend it
later when the details are available.

Items given for approval

Generally completed sales are entered into books. In case
items are given on approval, use a Memo voucher to track
and convert it into a proper Sales voucher. You can
cancel/delete the memo voucher if the sale is not made.
Memorandum Voucher Register
Go to Gateway of Tally > Display > Exception Reports >
Memorandum Vouchers.
Optional Vouchers
An existing voucher, such as a payment voucher or a receipt
voucher, can be marked as optional. When a voucher is
marked as Optional , it does not get posted. An optional
voucher is not a separate voucher type.
To mark a voucher as optional, press CTRL + L from the
voucher. The button toggles between regular and optional.
Use of optional vouchers
Mark a voucher type as optional
1. Go to Gateway of Tally > Accounts Info. > Voucher
Types > Alter .
2. Select a voucher type.
3. Set Make Optional as default to Yes .
4. Press Ctrl+A to accept.
After enabling this option, any vouchers entered using
this particular voucher type will be marked optional.
Use of optional vouchers
● Mark a voucher Optional , when it is an incomplete
transaction and you do not want it to affect the
accounts. Once it is completed, modify the voucher and
post it as a regular voucher. For example , optional
sales invoice can be printed as a proforma invoice.
● Optional vouchers can be used to forecast future
sales. For example , create a new voucher type, say
Sales Forecast. Record future sales projections using
this voucher type.
● Optional vouchers allow you to see the impact of
transactions without actually posting them.
Consider an example, it is the 30th June and you would
like to view the Balance Sheet as of today, but June
salaries are not due for payment until the first week of
July.  The Balance Sheet will not project the correct
 figures. To overcome this, you can enter an optional
voucher dated 30th June.
The optional voucher appears as shown below:

The Balance Sheet can be generated including the

optional voucher, if it is defined as a scenario (for more
details refer Scenario Management ). The voucher
affects the report temporarily. Once you quit the
report, the scenario details are not retained. Next time
when you view the balance sheet, it will not include the
optional voucher unless you include it.
Reversing Journals
Reversing Journals are special journals that are automatically
reversed after a specified date. They exist only till that date
and are effective only when they are included in reports.
These are used in interim reporting in the course of the
financial year where accruals are to be reported. These
accruals are usually short term and are cleared in the
subsequent period. However, to get a proper perspective,
decision makers require the reports with full impact of all
aspects and transactions.
1. Go to Gateway of Tally.
 2. Select F11 > F1: Accounting Feature.
3. Set Use Reversing Journals & Optional Vouchers? to Yes.
4. Accept the screen to save.
You may use reversion journal for accounting for or providing
for depreciation. Since, depreciation is usually provided
during at the end of the year, using the Reversing journal
you may include them for monthly reporting or a specific
period to give more accurate status or position.
For example, on 30th June you want to view the Balance
Sheet but June month’s rent is not been paid. You may
create a Scenario (refer Scenario Management for more
information) and pass a Reversing Journal entry to view the
reports which will be effective up to the applicable date.
When you view the Balance Sheet, Tally.ERP 9 displays the
report with the reversing journals included. The voucher
affects the report only for that day, 30th June.
Applicable up to
The reversing Journal is available for inclusion in a scenario
report till this date. The Reversing Journal can be created as
of a particular date and made Applicable up to a different
date.
Reversing Journal Register
All vouchers are maintained in a Reversing Journal Register.
These are not posted to any books of accounts and cannot be
included in regular reports. They can only be seen using a
scenario.
Post Dated Vouchers
While entering vouchers, you can mark them as post dated ,
as a result these vouchers are not updated in the ledgers till
the date specified in the voucher. This is useful for entering
transactions that take place on a regular basis. For example,
if you issue post dated Cheques towards payment of
installments, you can set up the payments in advance, and
Tally.ERP 9 will only update them in the ledgers on the due
date.
Mark vouchers Post Dated by using CTRL + T
 ● Post-dated Vouchers Register : All Post-dated vouchers
are maintained in Post-dated voucher Register.
Go to Gateway of Tally > Display > Exception
Reports > Post-Dated Vouchers
● Difference in the treatment of Post-dated Vouchers and
other Unconventional Vouchers : The major difference
between post dated vouchers and other Unconventional
vouchers is that post dated Vouchers affect regular
books of accounts on the date of the voucher. Post-
dated vouchers are not available for selection in
Scenarios.
Using Cost Categories and Cost Centres
Cost Centers can be allocated in the vouchers. Activate Cost
Centre for the Ledger Accounts that are used in voucher
entry.

Applying Cost Centres to Ledger Accounts

To apply cost centres to ledger accounts,
For example, enable Cost Center for Payment ledger –
conveyance account.
● Go to Gateway of Tally > Accounts Info > Ledgers >
Create/Alter
● Set the option Cost centres are applicable to Yes .
Cost Centre Allocation in Voucher Entry
Cost Centre allocations have to be done in the pop-up sub-
screens in the main voucher entry screen. The sub-screen is
displayed after the amount fields pertaining to the ledger for
which cost centers have been activated. Hence, the following
is the sub-screen for the ledger Conveyance A/c.
The entire objective of creating Cost Centres is to allocate
expenses and revenues to Cost Centres.
After allocating the Cost Centers, the payment voucher entry
screen is displayed as shown.

Receipt Note Voucher (GRN)

A Receipt Note voucher is used to record receipt of
goods/items at stores. For example , the Company receives
new stock item from a Supplier. If a Purchase Order exists
for that supply, selecting the PO reference in the Receipt
Note will display its particulars.
The details recorded in the Receipt Note are the PO
reference, Ledger account, Supplier's name and address,
Name of stock item, Stock location, quantity, rate, amount
and the transaction narration.
Purchase includes Accounting and Inventory.
The Receipt Note is similar to the Goods Receipt Note (GRN)
type of entry. When the Receipt Note is passed it updates the
inventory levels.
In Tally when a Receipt Note is tagged to a Purchase entry
the whole transaction is completed.
 ● If Receipt Note is accounted but the Purchase entry is
not, it is treated as Goods Received but Bills are not
received.
● If the Purchase entry is accounted and the Receipt
Note is not, it is treated as Bills Received but Goods are
not received.
● One Purchase entry can be tagged to many Receipt
Notes. Similarly, one Receipt Note can be tagged to
many Purchase bills. It is not necessary for all Receipt
Notes to be tagged with Purchase entries and vice
versa.
● When the stock received is a part of purchase and we
wish to keep track of the purchase bill
for accounting, a Tracking No. is assigned while
accounting the Receipt Note. The Tracking No. is
selected while accounting the Purchase bill/invoice.
Similarly, we can assign a Tracking No in the Purchase
voucher and  select it while accounting the Receipt
Note.
● A Receipt Note or Purchase Entry can be prepared first.
It is not compulsory that a Receipt Note should be
prepared before accounting the Purchase Entry or the
Purchase entry should be accounted before preparing a
Receipt Note.
Rejections Out Voucher (Purchase Returns)
The Rejections Out Voucher records goods that are rejected
and returned to a supplier.
1. From F11: Inventory Features , Enable the option Use
rejection inward and outward notes .
2. Go to Gateway of Tally > Inventory Vouchers
3. Press Alt+F6 or Select the button F6 : Rej. Out from the
Button Bar. For example, the company returns Item A
received from Supplier A.
4. Select the Party’s name from the List of Ledger
Accounts , to whom you are returning the goods.
5. Once Party’s name is selected under Ledger Account ,
this column will be filled up automatically with the
address, if provided in the Ledger Master creation screen.
6. Select the Item from the List of Stock Items .
Press Enter on the Item, it will display the Item
Allocations screen.
 7. Under the List of Tracking Numbers, the details of
Receipt note along with Tracking number will be
displayed, select the same and mention the quantity
rejected.
Recording Material Out Voucher
The Material Out Voucher is used to record the material
transfer out.
In case of Job Work - Material Out voucher can be used by
the Job Worker as well as Principal Company.
● Principal Company: Can use this Voucher to transfer the
Raw Materials to the Job Worker.
● Job Worker: Can use this voucher to transfer the
Finished goods to the Principal Company.
This voucher can also be used for any other purpose other
than Job Work.
Recording Material In Voucher
The Material In Voucher is used to record the material
transfer in.
In case of Job Work - Material In voucher can be used by
the Job Worker as well as Principal Manufacturer .
Principal Manufacturer : Can use this Voucher to record
the receipt of Finished goods / Scrap/By-Product/Co-Product
from the Job Worker. In this voucher Principal Manufacturer
can record the consumption of components used (own
consumption like- wax, screw etc.) by the Job Worker
Job Worker : Can use this voucher to account the receipt
of Raw material from the Principal Manufacturer .
This voucher can also be used for any other purpose other
than Job Work.
Stock journal is a journal in which all types of stock
adjustments are entered.
The stock adjustment may be due to the following reasons:
● Inter-Godown Transfer: This is useful to transfer the
goods from one location to another. The quantity of
stock remains the same, but the location changes.
● Additional Cost/Expenses involved in the Transfer of
goods: You can also account the additional cost
incurred in connection of transfer of materials from one
location to another.
● Accounting for Wastage of stock or shortage of stock:
There may be a shortage or wastage of stock items, the
quantity may have got changes. In such cases, you
have to enter a stock journal to account for the
increase or decrease in the Stock Item.
Manufacturing Process
If you are involved in the manufacturing process in which
raw materials are consumed and finished goods are
produced, then you can create a manufacturing Journal
Voucher also.
1. Go to Gateway of Tally > Inventory Vouchers .
2. Click F7: Stk Jrnl . For example, the company transfers
Item B from the warehouse to the shop.
 3. Date: Enter the Date of Stock Journal entry.
4. Ref: Enter the reference number, if any, or leave it
blank.
Record Manufacturing Journal Voucher
You can create a manufacturing journal and enter details of
the components used to produce the finished goods, or
the Co-Products/By-Products/Scrap produced during the
manufacture of the finished goods, and so on.
1. Go to Gateway of Tally > Inventory Vouchers > F7 : Stk
Jrnl .
2. Select the manufacturing journal.
3. Select the product which needs to be manufactured in
the Name of product field.
4. Select the bill of material in the Name of BOM field. The
components used to manufacture the finished goods
appears automatically.
5. Select the godown where the finished goods is stored in
the Godown field.
6. Enter the quantity of the product to be produced in
the Q uantity field. The percentage of cost of allocation to
 the primary item manufactured is displayed in the % of
Cost allocation field.
7. Enter the batch name, manufacturing date and expiry
date in Batch Name , Mfg Date , Expiry fields, if the item
to be manufactured in batches.
8. Select Components (Consumption).
● Select the components used for the manufacture of
finished goods in Name of Item field.
● Select the godown from where the components are
consumed for production in the Godown field.
● Enter the quantity of the raw materials required to
manufacture the finished goods in the Quantity field.
● Enter the rate (purchase cost) of the raw materials
used in the manufacture of finished goods in
the Rate field.
● The amount is calculated automatically based
on Quantity and Rate of item and displayed in
the Amount field.
9. Select Co-Products/By-Products/Scrap
● Select the Co-Products/By-Products/Scrap name which
is produced in the process of manufacture of finished
goods in the Name of Item field.
● Select the godown where the Co-Products/By-
Products/Scrap is stored in the Godown field.
● Enter the percentage of cost allotted towards the Co-
Products/By-Products/Scrap produced in the % of Cost
Allocation field.
● Enter the quantity of Co-Products/By-
Products/Scrap produced in the Quantity field.
● The rate of the Co-Products/By-Products/Scrap is
displayed automatically in the Rate field. (Rate =
Amount/Quantity).
● The amount is displayed automatically based on the %
of Cost Allocation defined for the Co-Products/By-
Products/Scrap produced in the Amount field. (Amount
= Effective Cost x % of Cost Allocation).
 ● The total cost of the components (raw materials) used
in the manufacture of finished goods is displayed in
the Cost of Components field.
● Enter the additional cost incurred for manufacturing the
finished goods, if any in the Type of Additional
Cost field.
10. The total of all additional cost is displayed in the Type of
Additional Cost field.
11. The total of Cost of components + Type of Additional
Cost incurred to manufacture the finished goods and Co-
Products/By-Products/Scrap is displayed in the Effective
Cost field.
12. The cost allocated to manufacture the primary item is
displayed in Allocation to Primary Item field. ( Allocation
to Primary Item = Effective Cost - Total cost of co-
products/by-products/scrap).
13. The cost of the primary item manufactured (finished
item) is displayed in Effective rate of primary item field.
(Effective Rate of Primary Item = Allocation to Primary
Item/quantity of the primary item).
Transfer Journal Voucher
Tally.ERP 9 allows you to transfer materials from one
Godown to another. The transfer of materials is done using
the Transfer Journal Voucher.
Record Transfer Journal Voucher
Print Stock Transfer Voucher
Stock Journal Printing Setup
Physical Stock Voucher
Physical Stock Voucher is used for recording the actual stock
which is verified or counted.  It could happen that the Book
Stocks and the Physical Stock do not match. It is not unusual
that the company finds a discrepancy between actual stock
and computer stock figure.
Physical vouchers will be useful for recording purposes only if
you have configured inventory vouchers to ignore physical
stock differences. If you have configured the vouchers so
that physical stock difference is not ignored, then all
transactions subsequent to the physical stock voucher will
use the balance as mentioned in that voucher.
1. Go to Gateway of Tally > Inventory Vouchers.
2. Select the button F10 : Phys Stk from Button Bar or
press Alt+F10.

3. Enter the stock taking date.

4. Select the name of the item from the List of items , for
which physical stocks need to be recorded.
5. Select the Godown (Godown will appear only if, Maintain
multiple Godowns is activated
in F11:Features > F2:Inventory Features ), in which the
Physical Stock taking was conducted.
6. Select the Batch number (Batch details will appear only
if, Batch wise details are activated in the Stock Item
Master screen) for which the Physical Stock quantity is to
be recorded.
7. Enter the Physical Stock quantity.
Item Cost Tracking
Item cost and profit t racking refers to accumulation of costs
and revenue for a particular quantity of a stock item across
various transactions. Any transaction can be tracked and
subsequently referred in any transaction. This enables
analysing the running cost and profitability of the item being
tracked through manufacturing, sales, purchase, and so on.
Item cost tracking helps you effectively track and ascertain
the procurement cost, landing costs, manufacturing or
production costs, order cost or profit, and job cost or profit.
This feature also helps determining sale price of finished
goods based on the costs incurred till date and overall
profitability.
In Tally.ERP 9, Item Cost Tracking can be enabled from
the Inventory Features screen. On enabling item costing for
the company, the option Enable Cost Tracking? is available in
ledger masters.

Enable Item Cost Tracking

Configure stock items for cost tracking
Configure accounting ledgers for cost tracking
Enable Item Cost Tracking
1. Go to Gateway of Tally > F11: Features (F2: Inventory
Features)
2. Set Use cost tracking for stock item to Yes .
3. Press Ctrl+A to save the settings.
On enabling item costing for the company, the option Enable
Cost Tracking? is available in ledger masters. Item cost
tracking can be enabled from the ledger creation or alteration
screens. Cost tracking can be enabled for stock item
masters, and accounting ledgers grouped
under Expenses & Incomes ( Direct/Indirect ), Purchases & S
ales accounts.
Configure stock items for cost tracking
1. Go to Gateway of Tally > Inventory Info > Stock Items >
Create / Alter .
2. Set the option Enable Cost Tracking to Yes .

3. Enter other details as required.

4. Press Enter to save the stock item.
Configure accounting ledgers for cost tracking
1. Go to Gateway of Tally > Accounts Info > Ledgers >
Create / Alter .
2. Enable Allow Stock Item Cost allocation? .
The Ledger Alteration screen appears as  shown below:
 3. Enter other details as required.
4. Press Enter to save.

Item Cost Analysis Report

You can track the overall profitability or cost of the stock
item without affecting stock values during  the entire
process.
The Item Cost Analysis Reports helps the user in tracking the
overall profitability or cost for the Stock Item, without
affecting the stock values during the entire process. I The
Item Cost Analysis reports provide the detailed information
as
per Stock Group , Stock Item and Item Cost Track breakup
via various transactions.
On this page
● Stock Group Cost Analysis
● Stock Item Cost Analysis
 ● Item Cost Track Break-up

Display Reports
The display of information is designed to allow a user to get
the maximum benefit of the data that is entered. A user gets
a holistic picture of the data and is also able to present
information using different options. The purpose of compiling
data is to present it in comprehensible accounting reports.
On entering the vouchers, Tally.ERP 9 uses the same data
and provides you with the management control reports in
addition to all books and statements.
The display screens of Tally.ERP 9 are dynamic and
interactive. They are not spooled print files but are specially
designed for the screen. What you see on the screen can be
printed as well depending upon your printer’s capabilities.
To know more, click the following links:

Reports ● Modifying Reports

● Display Balance Sheet

Display ● Display Profit & Loss Account
Financial ● Display Receipts & Payment
Statements Account
● Display Trial Balance

● Display Sales Register

● Display Cash Book

Display ● Display Bank Book

Registers and ● Display Statement of Accounts
Ledgers ● Display Purchase Register
● Display Journal Register
● Display Day Book

Display ● Display Stock Summary

Inventory ● Display Stock Items
Reports and
 ● Location/Godown Summary
● Movement Analysis
● Stock Ageing Analysis
Statements
● Sales and Purchase Orders
● Reorder Status
● Display Batchwise Reports

● Receivables and Payables

● Cost Centre Reports
Management
Information ● Cash Flow Statements
System ● Fund Flow Statements
Reports
● Ratio Analysis Report
● Exceptional Reports

Printing
● Printing Reports
Reports

Conclusion

Tally is the most popular and Highly Effective accounting

tool which makes the life of an accountant easier. Anyone who
is looking to enter in the field of accounting or wishes to lead a
successful career in accounting must learn Tally.ERP 9 as the
benefits of using Tally.ERP 9 are more for both small and
medium-sized businesses. Moreover the simplicity is the driving
force which allures the users of financial information to actively
use Tally as the ERP solution for their businesses.