Tally ERP 9.

Introduction;

Tally ERP means” Enterprise Resource Planning”. Tally is accounting software developed by tally solutions
which empowers the business owners to manage their business smoothly and efficiently. Tally is the world’s
fastest, affordable and highly reliable ERP solution. Tally is easy to buy, quick to install, simple to learn and is
designed t meet the needs of small, medium and large businesses. It provides an integrated business solution
Involving Sales, Finance, Purchase, Inventory, Manufacturing, Excise and Payroll besides tremendous
reporting, data synchronization, remote capabilities and so on.

Features of Tally ERP 9

Many business organizations consider account management as a daunting task. The emergence of Tally ERP
9 has vanished all the accounting hurdles. The accounting and the inventory features in the Tally software helps
in keeping track at daily business transactions.

Features of Tally ERP

Organizations including small, large industries and non-profitable areas are also being benefited with Tally
software. Let us have a brief look at the accounting software features of the Tally software.

Voucher Entry:

Tally software has the unique voucher entry system that enables diverse transactions at ease. The feature is also
flexible to use. As per the accounting terminology, the voucher is a document with the details of various business
transactions. Likewise, the software has also been loaded with several accounting vouchers each used for
particular purpose.

Interest Calculation:

The software uses different interest calculation methods that are customized for every transaction. Once the
calculation is done, the user can get a detailed report of the interest obtained. The report helps in knowing the
balance amounts that are ought to receive.

Integration of Ledgers:

Tally software inculcates multiple ledgers including General ledger, Sales ledger, and Purchase Ledger into a
single ledger. The ledgers have been differentiated into groups to get ease in the account management. Unified
ledgers concept helps in entering data and creating records simultaneously.
Individual Bill Tracking:

The software enables the user to track the bills of trading and non-trading accounts. The user can track the new
bills, receipts, payments and adjustments made against the bills without any hassles.

Replacing Accounting Codes:

The software replaces the accounting codes with regular names for accounts. It eases up the maintenance of
complex ledger systems. Due to the replacement of accounting codes, everyone can operate this system without
the knowledge of accounting codes.

Control, Audit and Budgeting:

Tally’s superior audit capabilities enable the user to have unlimited periods and budgets. With the help of this
feature, the user can track changes and make corrections at ease. Using security levels, the user can gain the
robust access control.

Billing Information:

Tally software enables the user to handle the top to bottom billing information that is receivable and payable as
well. It helps the organizations in allocating payments regarding invoices and the overdue ones. The software
also helps in segregating good customers and bad customers using the billing information.

Multiple Currency Support:

Many companies involving in International Trade conduct transactions has increased usage of multiple
currencies. Due to exchange rate fluctuations, companies find it difficult to record transactions. Tally software
renders a great help in easy transaction management involving foreign currencies.

Every feature has its own unique advantages to the companies. Users who intend to start learning Tally software
can complete the work twice faster than before. Mazenet Technologies, the leading provider of ERP solutions
built in the Tally platform. The organization trains candidates and make them a valuable product in the current
market. For more information, visit the site and enroll the details
Advantages of Tally
1. Manages data Easily

By Tally software, you do not need other software to manage client data. You can store all the data of all clients
in one place and make any changes in it anywhere. Also, Tally adopts unique methods of trading easily. So you
can manage your work, like a bird’s eye view of any part of the account in detail, one should get a report before
making any business decision.
2. Easy to Grow Business

For a growing business, there is a need for vigorous monitoring. due to this business runs in profit and when it
has to suffer losses. Once it comes to know the reasons for losses are occurring in business, then it becomes
very easy to improve and grow the business. By using Tally software, you can easily keep monitor of
inventory, payroll, and banking and etc.
3. GST solution

Since the inclusion of GST in our tax system, there is always hesitancy of filling or returning our GST from
others. Tally has included answers to all the questions, it detects the errors and corrects them. It helps us by
creating invoices and file returns GST.
Since the inclusion of the GST system on enterprises in India in 2016–17 has been quite effective. In the initial
phase, it was difficult for understanding GST for people. Keeping this in mind, Tally Solutions provided the
facility to file GST in its latest version of Tally software. With this feature, it became easy for people to know
about GST and file GST returns.

4. Bank Reconciliation

Tally maintains the records of post-dated checks and generates cash deposit slips, print checks, and many
other works related to the bank. Tally can fix banking faults automatically which is done by humans by mistake.
This Tally feature helps, saves time as well as avoids mistakes.
5. Reports and decisions

Reports like trade arrears, stock aging analysis, cost estimates can analyze with Tally software. These reports
help the owner to speed up the growing business and make business decisions better for maintaining a great
pace.
6. Secured Data

Any company would never like its data software to be shared by the other competitor’s company. The Tally
software saves and protects the company’s data by not sharing with third part without access.
Tally keeps your financial data by providing keys and patterns that you can generate by yourself from which
you only can access the data of the business. Also, there is less probability of losing data by corruption.

The data stored in this software is completely secure and no one can access your data even until you don’t
permit it, as you set a password for your computer. Today this company has more than 1 million customers
satisfied.
7. Mobility Access

It is not possible to move accounts of books with you at all times. You can access your business with the help of
Tally software from anywhere in the world. No matter where you are or your business is located. One can
access more than two businesses at the same time by synchronizing your data in Tally software.
8. Speed up auditing

It takes more time to prepare the trial balance, profit, and loss statement, and balance sheet manually. Which
eventually spends a greater amount of our time in making the final report. The accounting task is made easy by
choosing certain transactions and tracking their progress by monitoring each voucher in the Tally software.

9. Saves Time

As you know, it often takes a long time to record the accounts manually and in such cases, the chances of
making mistakes are also high. Using Tally saves you from wasting your precious time and avoiding wrong data
records.

Disadvantages of Tally ERP 9.0

Time-consuming accounting processes

When you maintain your accounts manually, each step in the accounting process is long-drawn. To prepare
important financial reports like Profit & Loss Account and Balance Sheet, delays running up to a couple of days
is common. This becomes even more evident as the volume of your transactions increases. In order to maintain
and keep your accounting processes running, additional resources will also need to deploy, because the amount
of work to be done becomes huge.

High chance of accounting errors

The chances of making errors when you maintain your accounts manually are high. Without a system to detect
the errors made, finding the error and rectifying it also becomes a time-consuming process. As the probability
of making errors is high, you would not be able to fully trust the data on which you make your decisions.
Maintaining manual accounts means more stress and less efficiency for the business.

Low business efficiency

The accounting cycle is such that performing it manually requires time and significantly more effort, compared
to software. This leads to a situation where you may miss out on key opportunities and insights about the
business. Also, performing the routine and mundane accounting processes over a long period of time results in
employees feeling stressed, overwhelmed and inefficient. It is advisable to allow the software to perform the
routine tasks for you and let your employees add value to these tasks by arriving at analysis and actions for your
business.

Difficulty in tracking transactions

Accounting involves reconciling your books with your bank statements on a regular basis. Another important
task is also to keep a track of the money you owe your suppliers and the money owed by your customers. It is
important to ensure that you pay your suppliers on time and your customers pay you on time. Keeping a track of
all these things becomes a herculean task when you’re managing all of them manually.

Difficulty in syncing invoicing, accounting and inventory

An accounting transaction can impact your invoicing, inventory, banking, etc. When you maintain your
accounts manually, you need to put it extra efforts to ensure that your invoices match your books and that your
inventory is in sync with the transactions entered. A great advantage of using accounting software is that all you
need to do is to enter your transactions. All your accounting reports, inventory numbers and credit
management are then taken care of by the software.

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.

Tally.ERP 9 has outgrown from the concept of just accounting software to managing statutory compliance by
updating statutory files available at Tally solution website. Today one can operate Tally remotely using
Tally.net features, process payroll and many more features are updating regularly by Tally solutions. The most
recent improvement is GST) with compatibility from version Tally.ERP 9 release 6.

TallyPrime is the latest version of Tally. Simplicity, speed, flexibility, and reliability are a
trademark of Tally products and with TallyPrime you will experience them at a whole new
level. You can multitask without losing the progress, navigate and discover the product much
easier, invoice with amazing simplicity and much more to delight you.

How to create a company in Tally.ERP 9?

To create a company in Tally.ERP 9,

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 Creation In this company creation screen, you
Screen should enter all the details of the company
that you been asked for.

Details to be filled in company creation screen

Directory
It is nothing but the data storage location. The tally directory will store all data you entered in Tally ERP 9.
Anyway, by default, the data storage will be inside the installation folder.

Name
In this field, we are required to type the name of the company, for example. XYZ INC.
Primary mailing details
 Mailing name

In this field, we are required to type the name of the company, for example. XYZ INC.

 Address

In this data field, we are required to enter the address of the company.

 Country

Here we are required to select the country from the list in which the business Operates.

 State

In this data field, we have to select the state in which we would comply with statutory laws

 Pincode

Pincode of the location where the office exists.

Contact details
 Phone no

Enter the Company contact number which we would like to display on Invoices

 Mobile no

Enter the Contact number of Managing Person to whom any queries related to Invoicing or Delivery of
product, complaint in the product could be reached to

 Fax No

Enter the Fax number to which any confirmation statements, ledger copies etc., could be sent and
received

 E-mail

Enter the company’s email address to which any product inquiry and other communications could be
made.

 Website

Enter the company’s web address if any

Books and financial year details
 Financial year begins from

In this data field, you have to type the financial year in which you want to create a company. Suppose
you may be starting company on December 01 2018, you should enter the financial year from as
01.04.2018.

 Book beginning from

In this data field, you have to type the financial year in which you want to create a company. Suppose
you may be starting company on December 01 2018, you should enter the financial year from as
01.04.2018.

o Starting in the middle of the financial year.

o Companies which are migrating from Manual Accounting to Tally ERP 9 in the middle of the
financial year.

Security control
 Tally Vault password (if any)

This data filed is for security purpose. By enabling this field, Tally ERP 9 Convert tally data into an
encrypted format. To encrypt means convert data from recognised format to unrecognised format.

By entering the Tally Vault password we can prevent unauthorized access of company data. Now in
Latest Tally ERP 9, There is a password strength indicator, which will help you to set a strong password.
Red colour indicates a weak password whereas peach-orange colour: fair, Yellow is good and Green
colour indicates a strong password.

CAUTION: FORGETTING TALLY VAULT PASSWORD WILL RENDER THE DATA

INACCESSIBLE

Use security control?

Enabling this data field, we will get complete control over the data, we can assign users for specific purposes,
for example :

 We can assign data entry operators who can access only voucher entry screens.
 We can assign billing clerks who can access only Sales invoice voucher
 We can assign Financial managers who can access financial data’s and reports as the administrator
control his access.

In this data field, we will be asked the administrator name and password.

Base currency information

 Base currency symbol
 In this data field, the currency symbol of the country is auto selected based on the country of origin fed
by you in the previous data field. There is no need to change this data field if you are using the same
currency for accounting.

 Formal name

This is the formal name of the currency selected in the previous field

 Suffix symbol to amount?

This data field will ask you whether currency symbol is required for example: prior to amount like $
4,500

 Add space between amount and symbol?

This data field is like $ 4,500 space in between currency symbol and amount.

 Show amount in millions?

If we set this data field to Yes, Tally will display the amount in millions that are in the Balance sheet or
other reports. Amount for example 100,00,000 will be shown as 10. [One million equals 10,00,000].

 Number of decimal places

It is a general practice to use 2 decimal places, for example :

o for using Paisa in Indian currency we use 2 decimal place.

o for using cents in American dollar currency we use 2 decimal places
 Word representing amount after decimal

This data field is used in printing, in Indian currency decimal portion is said to be Paisa. Set this field as
per your formal name of the decimal value in your currency. For USD it is cents. Hundred cents make
one dollar.

 Number of decimal places for amount in words

If we set this data field to 1 decimal places in Indian currency, then while printing 75 Paisa. Will print as
seventy Paisa, if we set this to 2 decimal places, then it will print the second fraction like seventy-five
Paisa.

To save the details entered in company creation screen

If you have entered all the details and after verifying it seems to be right, then you have to accept the screen by
pressing Enter and again Enter to accept and save the details.

Note: If we have enabled the Tally Vault password, then in the next screen it will ask the Name of the user and
Password details. After entering these details, Tally ERP 9 will create a company and direct you to the Menu
Gateway of Tally Where you can create masters and enter transactions.
Create Company in Tally

In this section, we will learn how to create a company using a simple step by step methods. The first step to get
started is to create a company. In Tally, the creation of a company involves basic information about the
company, books, and details of currency.

How to create a company in Tally

Step 1: In tally, after login double click on the create company option under company information. The
following navigation path is used to create the company in Tally:

Gateway of Tally → Company Info → Create Company

Step 2: The following screen displays the company creation window:

Note: Use the Arrow key, Tab key, Mouse, or Enter key to navigate between the fields in Tally.

Step 3: Enter the "Company's Mailing Name". This is an important field because it shows all the printouts.

Step 4: Enter the "Company's Full Address". This is shown on all printouts. Thus it is an important field.

Step 5: Choose the "Name of the Country" as India from the given countries list.

Step 6: Choose the "State" from the given list of states.

Step 7: Update the "Company's Pin Code", where it is located.

Step 8: Update the "Telephone Number"/ landline of the company.

Step 9: Update the "E-Mail id" and "Website" of the company.

Step 10: Update the financial year starting date of the company. In India, the financial year of the company
starts on 1st April and ends on 31st March.
Step 11: Update the date from which accounting is allowed in Tally. Generally, this date and the starting date of
the financial year are the same. But if the company has been formed on any other date of the year, that date will
be mentioned.

For example: If books have been set to begin from 1-Dec 2019, the Tally will not allow the entries for the 1-
April-2019 to 30-Nov-2019.

Step 12: If we want to use TallyVault, enter a password. It is a secure feature that encrypts data.

Note: we have to use this feature very carefully. If we forget the password, it may be impossible to recover the
data. We can permanently lose the data.

Step 13: Repeat the password of TallyVault. Tally ERP matches this password with the previously entered
password to ensure that the password we typed previously was the intended password, which means there is no
typing error.

Here the bar indicates the password strength. Strong passwords indicate with a green bar. A strong password is
better.

Ledger Creation in Tally ERP 9.0

There will be Individual or Companies who Credit the Funds or supply the Goods on Credit to
another Company or Firm for the business purpose. And they will be treated as Creditors by receiving company.
In Tally.ERP 9 we can create a ledger to account them with the help of Sundry Creditors Ledger Group in the
books of Receiving Company.
In Tally.ERP 9 Accounting Software we can create as many Creditors we want to create for the Company we
can do it using the Ledger Creation screen and with the help of Sundry Creditor predefined Ledger Group.
In order to create a Sundry Creditor ledger just open the Tally.ERP 9 and load the Company to work with and
get to the Ledger Creation screen. In the Ledger Creation screen
1. Give a name for the Creditor.
2. Choose Sundry Creditors from the List of Groups for under field.
3. Provide the Mailing Details and other information if required.
4. Enter the Closing Balance if there.

And accept the screen to create the Creditor Ledger. This is how to create a Creditor Ledger Account in
Tally.ERP 9 Accounting Software.

Posting Vouchers in Tally EPR 9.0

Voucher Entry Configuration

You can customise the voucher entries in Tally.ERP 9, both the accounting and inventory vouchers, by
enabling required options in the Voucher Configuration screen.
1. Go to Gateway of Tally > F12: Configure > Voucher Entry . The Voucher Configuration screen
appears as shown below:
 2. Enable the required options.
3. Press Ctrl+A to accept.

Vouchers in Tally.ERP 9: Introduction

Tally ERP 9 is an accounting software broadly used by many businesses as it consists of various useful features
for easy maintenance of records and analysing data. This software is constantly updated to keep in terms with
the latest industry developments to do business accounting easily. Tally.ERP 9 offers transaction recording,
inventory maintenance and statutory compliances. Tally Accounting Vouchers are an important tool for better
maintenance of records, and it also creates a base for analysing data. You may have used vouchers in tally and
may be acquainted with its role. However, if you are new to Tally ERP or want more clarity about vouchers
in Tally ERP 9, you can check this article for gaining a better understanding.

What is a voucher in Tally?

Voucher in Tally is a document having all the details of a financial transaction and is required for recording
them in the books of accounts. They can be easily created and modified. You can find types of Tally vouchers
option in ‘Gateway of Tally’ under ‘Transactions’. There are few predefined vouchers in tally and can be
viewed as Gateway of Tally > Display > List of accounts > Ctrl V [Voucher types]. The following screen will
appear in the tally vouchers list:
Types of vouchers in Tally
There are broadly two voucher types in tally. They are accounting vouchers and inventory vouchers.

Accounting vouchers in Tally can be further classified as under.

1. Sales Voucher
2. Purchase Voucher
3. Payment Voucher
4. Receipt Voucher
5. Contra Voucher
6. Journal Voucher
7. Credit Note Voucher
8. Debit Note Voucher
Inventory vouchers in Tally can be further classified as under.

1. Physical Stock Verification

2. Material In and Material Out Voucher
3. Delivery Note
4. Receipt Note

Tally accounting vouchers:

1. Sales Voucher in Tally

Whenever you sell a product or service, you record sales entries. In tally, the sales are recorded through the
sales voucher. It is one of the most widely used accounting vouchers in tally. There are two modes for
accounting in sales vouchers- Invoice mode and Voucher mode. You can use either of them. You can print the
copy of your invoice to the party in Invoice mode. In Voucher mode, you can record the transaction for
statutory purposes where you don’t need to print the invoice document.

You get great flexibility with Tally ERP 9. If you want to change the mode of your transaction, you can do so
with the help of the Toggle button, and your screen will be adjusted with the relevant data making it user-
friendly. You can mention the complete details of all the items you sell along with units, quantity and rate. You
can also activate GST calculations if they are applicable to you.

Example of Sales Voucher in Invoice Mode:

Example of Sales Voucher in Voucher Mode:

2. Purchase Vouchers in Tally

Whenever you purchase a product or service, you record the purchase entry. In tally, this is recorded through
the purchase voucher. It is also one of the most widely used vouchers in tally. There are two modes for
accounting in purchase vouchers- Invoice mode and Voucher mode, as mentioned in the sales voucher.

3. Payment Voucher in tally

All the functions of a payment transaction are available in Tally. You can have all the necessary details like
instrument number, Bank name, balance available, etc. After passing the entry in the payment voucher, you can
also print the cheque. You can look at the list of cheques that need to be printed by going to Banking and
clicking on Cheque Printing.

4. Receipt Voucher in Tally

When you receive payment, you can record that transaction in the receipt voucher. You will even get a prompt
for the pending payments from your customers. You can record transactions when you receive the payment and
select the correct mode to receive the payment- cash, cheque or other modes- and mention the relevant
instrument number. With receipt vouchers, now you can maintain transparency of your sales with your clients
effectively.

5. Contra Voucher in Tally

Contra Voucher is used when either side of the entry has cash, bank or multiple banks involved. Generally, any
cash deposit, withdrawal, transfer amongst different accounts are recorded in a contra voucher. You can also
generate a cash deposit slip and mention the denominations of the currency involved in such a transaction.

6. Journal voucher in Tally

This voucher can be used for multiple reasons. Some use it for sales, purchases, depreciation; any adjustment
entry can also be done using this voucher in Tally. This voucher is available in both accounting and inventory
vouchers in Tally. In inventory mode, the entry relating to the movement of goods can be passed.

7. Credit Note Voucher in Tally

Credit Note entry is passed when there is a sales return transaction. This voucher usually remains deactivated by
default. You can activate it by pressing F11 and configuring features in invoicing. You can refer to the original
sales invoice against which this entry is passed to keep track of such transactions. When a party is selected, you
will come across the list of invoices against which this credit note voucher is used. Credit notes can also be used
either in invoice mode or as voucher mode as could be used in Sales Voucher.

To Activate the Credit Note and Debit Note feature, you can select F11 and activate the credit and debit note
feature as under:

8. Debit Note Voucher in Tally

Debit Note entry is passed when there is a purchase return transaction. This voucher is deactivated by default.
You can activate it by pressing F11 and configuring its features. You can refer to the original purchase invoice
against which this entry is passed for maintaining track of such transactions. When a party is selected, you will
come across the list of invoices against which this Debit note voucher is used. Debit notes can also be used
either in invoice mode or voucher mode as utilised in Purchase Voucher.

Inventory Vouchers:

1. Physical Stock Verification Voucher in Tally

This voucher maintains the list of inventories in a company. Generally, businesses count physical stock
verification periodically and keep a record of the same through this voucher. This helps to keep inventory
control in check. You can mention the name, quantity, rates, godown, batch/ lot no, manufacturing date, expiry
date, etc. You can easily find which godown has how many goods and of what value. This can help in
management decision making and maintain the numbers in the physical inventory and accounting books.

2. Material In and Material Out Voucher

This voucher is widely used for those businesses where workers are involved. It helps to keep track of inventory
sent and received from a worker. You can activate this voucher by pressing F11 and configuring features. You
can mention details like the item's name, rate, and quantity for better records maintenance. You can monitor the
periodicity for which the goods have been with the job worker and when they were received. This is necessary
for GST compliance as well.

3. Delivery Note Voucher

This voucher is used to record the delivery of goods. It is also referred to as Delivery Challan. It also has
additional features wherein you can enter the vehicle number, dispatch document number, bill of lading, and
other details.

4. Receipt Note Voucher

This voucher is used to record the receipt of goods from the suppliers. It also has additional features wherein
you can enter the vehicle number, dispatch document number, bill of lading, and other details.

Order vouchers in tally

Apart from Tally accounting voucher and Tally inventory vouchers, tally also provides order vouchers. They
are purchase orders and sales order vouchers. They help in managing the whole transaction cycle of an order.
You can even record post-dated sales and purchase order vouchers.

Shortcut keys for voucher types in Tally ERP

Tally provides shortcut keys for faster usage and easy facility to the users. They have been tabulated as under:

Voucher type Shortcut key

Sales F8
Purchase F9
Contra F4
Payment F5
Receipt F6
Journal F7
Credit Note Ctrl + F8
Debit Note Ctrl + F9
Physical Stock Alt + F10
Material In Ctrl + W
Material Out Ctrl + J
Delivery Note Alt + F8
Receipt Note Alt + F9
Sales Order Alt + F5
Purchase Order Alt + F4