Tally

Company Information Menu

The very first time you start Tally, you would require to 'create' a company. 'Create Company' simply means giving basic information about the company whose books of accounts Tally is to maintain for you. Tally is smart, but it does need an introduction to your company

The menu screen is broadly separated into two sections. The right hand side contains the menu popup, where you would select your instructions to Tally. 

The left-hand side gives information of the companies that are already loaded or selected. It also gives information of the currently loaded company's accounting period and the date. Current date is not the calendar date but the date you worked last during the current period. You can select a company only if the company exists (obviously). Select one or companies if you need to switch between companies or if you need information from one or more companies for comparison purposes.

F12: Configure – General configuration to set country specific defaults. Use it before creating a company

Create a company

Gateway of Tally —> Company Info. —> Create   

Directory (only available in tally 6.3 not in tally 5.4)

Give the data path where You want the company to get created. This field is skipped by default assuming that you wish to create the company in the data path given in the Tally.INI file. However, if you want to change it, simply use the backspace key and change it to whatever required.

This is basically referred to as the Tally Anywhere concept – which is an ability to create/load companies in separate directories. The 'Directory' field is found during Select, Create, Backup, Restore, Split Data and Rewrite options for a company. By default, the cursor will skip the field, presuming that you wish to use the default data directory for your work. You may press backspace and give a completely new path and work through there.

For example, the default Tally data directory could be 'C:\TALLY\DATA'. You may now wish to create a new company on 'C:\TALLY\PERSONAL', and some other companies on 'C:\TALLY\BRANCHES'. The next time, the default directory will continue to show C:\TALLY\DATA, and if you wish to work on the data of your branches, you would press backspace and enter C:\TALLY\BRANCHES for the directory name. This would bring up those companies whose data is stored there. We can even give the path of a network server or any storage device (example –

Name

Give the name of the company whose books are being opened. It is typically your company. If you are a professional accountant and are maintaining the books of your clients, give the Client Company's name.

(Of course, you would maintain your firm's books on Tally too! In that case, give your firm's name).

Mailing Name and address

(Not compulsory - can be left blank)

The mailing name could be different from Company Name. What is its use? The mailing name and address is picked up for inclusion in any report which needs the company name and address at the top, e.g., Balance Sheets, Statement of Accounts, etc. You do not need full name and address in each report; hence the option.

Let's say you have branches in say, Kathmandu, Hatauda and Butwal. Each branch may begin the branch books by giving the company name as 'Tally Solutions'. However, its mailing name is comprehensive with full details:

REfresh Computer Education
Ratnanagar-2, Tandi
Ph No. 9845043519
The mailing name and address would be available for financial statements and statements of accounts that may need to be given outside the company.

E-Mail Address (only available on tally 6.3)

Give the e-mail address that will be used to e-mail documents, reports and data from Tally.

Currency Symbol

Give the symbol of the base currency, e.g., IRS, NRS., or US $, etc. Tally uses this symbol in reports, where necessary. You will maintain your accounts in this currency. For more details, refer to the section on Currency Information below.

Income Tax Number – (Only for India/Asia)

(Not compulsory - can be left blank)

For the number allotted by the Income Tax Authorities. This could be the Permanent Account Number in India. The information, if given, will appear in Account Confirmation Statements

Sales Tax / VAT registration numbers

In India and in many other federal countries (with many states/provinces), the state as well as the Centre (Federal Government) charge tax on transfer of merchandise. The state usually taxes transfers within the state, while the Central Government will charge tax on transfers from one state to another. You may be required to register your company with both local and federal governments. Registration is acknowledged by way of numbers, which often need mentioning in different documents, especially invoices. is not compulsory to give this information and you may skip it. On the other hand, you may give either or both, as applicable. Similarly, VAT is the value-added tax levied on transfer of most goods and services in the UK and Europe

VAT / Local Sales Tax Number

(Not compulsory - can be left blank)

For the registration number allotted by Local (State or Provincial) Sales Tax/VAT Authorities. This information, if given, can be printed on invoices.

Inter-state Sales Tax Number – Only for India/Asia

(Not compulsory - can be left blank)

For the registration number allotted by Central (Federal) Sales Tax/VAT Authorities. This information, if given, can be printed on invoices.

Maintain

Specify whether you want to maintain only financial books of accounts or only inventory or both accounts and inventory. Select from the popup list.

Let us examine each option and its applicability.

Accounts only

Select this only if you do not have any inventory transactions (suitable for professionals and corporate offices). Tally would not permit intrusion of Inventory related information that are not required.

Inventory only

Select this only if you do not want to maintain ANY financial records for this company (may be suitable for pure stock points/godowns and factories). Tally prevents financial information from being recorded or displayed.

You may opt for Accounts Only in your corporate office and Inventory Only at your remote stock point.

Accounts-with-Inventory

This obviously allows you to maintain both financial accounts and inventory. You may choose not to use one or the other until the need arises.

You can always modify the company information to change these settings to allow or to discontinue accounts or inventory.

Once you have created the company and load it you would find a button - [F11] Company Features - on the bottom right hand corner of your screen. Company Features are modifiable settings pertaining to the current company you are working with. One of the settings is a question pertaining to maintenance of accounts-with-inventory, viz., Integrate accounts and inventory (Yes/No?). Why should this question be asked at all?

An explanation is in order here:

While creating the company, you have selected accounts-with-inventory to be maintained. Tally will, now, allow maintenance of both accounts and inventory for the company but you may or may not integrate the two. The difference from accounts only and inventory only is that you need to create only one company in this case. In the other case, you would have to create two companies - one for accounts and the other for inventory. Moreover, you can then select to integrate or not integrate at any time. The data is organised in a manner that the separation or merger is done without taking any time.

The effects of integrated and non-integrated is described below:

Integrated Accounts-and-inventory:

You are allowed transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock. You are not allowed to directly change the closing balance of an account under this group.

Non-integrated Accounts-and-inventory:

Accounts that fall under the group 'stock-in-hand', are not permitted any transactions. It allows you to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they are the only accounts for which the closing balances can be directly altered (by an authorised user only)

Financial Year From

- To specify the Financial Year for this company. Tally considers 12 months from the date you give here as the Financial Year. The books are closed exactly 12 months after this date. For example, you may give 17 July 2004 as the date( because Tally does not support Nepali Date so Nepali financial stats from 1^st  shrawan so change the date in to English date by using calendar). Your FY will be July to July in this case, ending with 16 July of every year. (Give 17^th April even if the company is actually established on, say, Paush 2061). You are permitted to modify the date at any time (subject to security permissions, of course) and the FY will change accordingly. In a manner of speaking, it is actually a floating financial period.

Books Beginning From:

Tally presumes that you wish to maintain books from the beginning of the financial year. However, it is possible that yours is a new company, begun in the middle of the year (not may people wait for the 1^st day of the FY to start companies). You would like to start books from this date but close books according to the FY selected by you. Moreover, you do not like reports including the period your company was not even in existence. In such a case, give the date the accounts actually begin. Tally will open books from this date and close on the last day of the FY. For example, your company is established on Paush 16,2061. The FY stated previously is 17 July to 16 July. The books will begin on 16 Paush  and close on 31 Ashad. It ensures smooth transition to the next year.

Tally Vault(only available on tally 6.3)

Give a password here if you want the company data to be maintained in an encrypted form. This is known as TallyVault , it is a enhanced security feature. With the TallyVault password given, the data will be maintained permanently in an encrypted form without retaining information of the password used. Without the TallyVault password – the data is not accessible. Remember to keep this password private and known only to those who need to know. If the password is lost, your data cannot be recovered without it.

Use Security Control?

- Yes, if you want to control access to Tally data, otherwise No.

If you opt for security control, Tally offers a comprehensive password based access control to different parts of the system based on authority lists created by the Administrator. (The section on Security Control under Advanced Usage contains details on authority lists)

Give the name of the administrator (presumably yourself) and your password. You repeat the password by way of verification. The password is not displayed to protect it.

** Any password based security mechanism is only as god as the discipline maintained in password management. You may need layers of security beginning at the Operating System level depending on the nature of information. Consult an IT Security Specialist if necessary

Use TallyAudit features

TallyAudit allows the administrator or an auditor profile user to track changes in accounting information. If you wish to use this facility, select Yes. TallyAudit will be available only to the administrator/auditor, through Display of Statements of Accounts. It will be discussed in fuller detail under the Security Control section in Advanced Usage.

Base Currency Information

The lower portion of the Company Information screen is reserved for Base Currency Information. Tally is multi-currency enabled. You can record transactions in foreign currency, raise invoices in US Dollars (or any other currency), maintain bank accounts or ledgers in foreign exchange, if required. However, for accounts to be meaningfully reported, all transactions should be converted to a common currency. A common factor enables compilation and summarization as well as analysis. Base Currency is the common currency in which your accounts would be maintained. It is usually your home (local) currency, assuming that most transactions are in this currency. Moreover, financial statements would be prepared in the base currency by default. These would normally be required for local statutory authorities. For example, if the accounts belong to a company in India, the base currency would be Indian Rupees (Can you imagine the local authorities accepting financial statements in Vietnamese Dongs or even US Dollars for that matter?). On the other hand, if the company were located in the UK, the base currency would be Pound Sterling. Now, it is not compulsory for you to do this, you could very well do the reverse. All Tally needs is any base currency.

Base Currency Symbol

Give the symbol of the currency, e.g., NRs, IRs or even  US $, etc. Tally uses this symbol in reports, where necessary.

Formal Name

The full name of the currency, e.g., Indian Rupees, Sterling Pounds, U.S. Dollars. Why do you need formal name?

Number of decimal places

Give the number of decimal places for the base currency. Most currencies have two (e.g. Indian Rupees, Pound Sterling, US Dollars) but some (e.g. Dinar) have more.

Load a company

When the company is created it gets loaded automatically the first time. However, you must Select the company to load it. (Select and load are synonymous)

Start Tally by double clicking the Tally icon.

Tally can be configured to automatically load companies by appropriately setting the TALLY.INI file. The relevant portion of the TALLY.INI file is reproduced below:

The above setting (Default Companies being set to Yes) loads company 0001. When creating a company, Tally creates a sub-directory under its \DATA directory for the company. The directory is allotted a number in serial order starting with 0001. You may load more than one company at a time. (The semi-colon precedes a comment, which means that the words following it in that line would not be executed. Each line is a separate command). To load company 0002 also, simply remove the semi-colon before the command Load-0002. Likewise, give Load=0003, if you wish.

Example of sub-directories created by Tally for different companies:

On the other hand, if you do not want to load any company be default, i.e., Default Companies:-No, then on clicking the Tally icon, Select a company you want to load:

Bring arrow to Select Company and press <ENTER> or double-click the option.

Select the company to bring you to the Gateway of Tally of that company

The left side of the screen gives details of the loaded companies. In the example below, two companies are currently loaded:

ABC & Co is the active company. However, the current period and the current date at the top of the screen are of the company that was first loaded, i.e., of Messengers shyam & com Pvt ltd. You may need to be careful when selecting to load companies having different accounting periods. When you do so and switch between the companies, keep in mind that the current period may not be the accounting period of the new company.

The advantage of loading other companies in addition to the current company is that these become available for the purpose of comparing and analysis for like periods. You may often need to bring up data from other companies while working with the current company.

Shut a company

Shut a company means to unload it. It does not mean that you have deleted it. Simply select it again to load and work on it again. Double-click the button [ALT][F1]:Shut Cmp or press [ALT]+F1 and select the company you want to shut.

Alter a company

You can modify, at any time, any information given whilst creating the company.

At the Gateway of Tally

[ALT]+F3 —> Alter

The menu below gives options relating to company information. This includes Alter.

Delete a Company

In order to delete a company, you have to load the same first and then using Alt+F3, proceed to the Company Information menu. Click on Alter and reselect the company and use Alt+D to delete. Tally will prompt for a confirmation on deleting the company.

Note: Incase passwords are used to log into the company, only the administrator has access to delete.

** With adequate security (that is, owner level security), you could select to alter a company (Gateway of Tally —> Alt+F3 (Company Info) —> Alter —> select company to alter), and then press Alt+D (delete) to remove the company from the hard disk. Take care, however, that this process cannot be reversed, and all files and directories associated with the company would be permanently removed.

Note:- If you like to delete other group and sub-group you should press {Alt+D ] after that select YES.

The option Create Group Company is not active when only one company is currently loaded. For this option to be used, more than one company should have been loaded.

Security levels – types of security

Tally has a very customizable security system. You can set up authority levels and users who are placed at these levels. The authority levels or Types of Security decide the rights of the users – what they can or cannot do when using Tally.

Tally has two security types already set up. One is Owner and the other Data Entry. Owner has full access and rights to all parts of Tally, except Tally Audit, which is reserved for the administrator alone. Data Entry has restricted rights. You are allowed to create other security types based on these predefined types and allow more or less rights as required.

Gateway of Tally —> [ALT]+F3:Create Cmp —>Security Control

Types of Security (security or authority levels)

Owner has full access rights. The other predefined type, Data Entry, is based on owner but is restricted by default. The default settings for Data Entry are as follows. You can change them to allow more or less rights as necessary.

Types of Security [Enter] —>Data Entry[Enter]

Create a new security level

Types of Security —> Data Entry—> [Down Arrow]

(Press the down arrow key at the option data entry.)

• This is one of the few places in Tally where you create a new entry in this fashion.

Type the new security level, e.g. Manager

The level definition screen

Name of security level

This is defaults to the name you had created.

Use Basic Facilities of

The default is the owner. However, the other option is also available – Data Entry. If the popup list does not appear when you are at the field, press D – beginning to type the word. Going back from the next field will also pop it up. The new level Manager will, likewise, be available when you create a next level.

Days allowed for Back-dated vouchers

This is the number of days the users of this level are allowed to create back-dated vouchers. Specifying 0 will indicate that back-dated vouchers are not allowed, and 7 will allow the user at this level to insert vouchers going back 7 days.

Cut-off date for Back-dated vouchers.

Specify the date before which users of this profile or security level may not create or alter vouchers. This is additional control over and above the previous 'days allowed'. This is useful in cases where you have completed your Tax Assessment for a period and no changes are desired in the data for that period.

Disallow the following facilities/Allow the following facilities

The screen is now divided into two broad columns each have two sub-columns. The left side is to disallow access to the various options of the system. The right side allows the security level the different facilities.

The different access rights options – Types of Access - are available in a pop-up list when the cursor is on an access rights field (the first left column in the screen above). The options sought to be controlled, are on the right (the second column from the left).

To disallow access to different options; First select the type of access and then select the option. Options may be selected from the popup list of Reports. Repeat the procedure till you have set access rights for the different options. Note the bracketed sentence in italics. When you select a type of access, this type would be disallowed for the option. Hence, if you select Full Access for Balance Sheet, you want to prevent any access to Balance Sheet by this security level.

Conversely, under 'Allow the following facilities'; if you select Full Access for Balance Sheet, you want to allow full access. Full access incorporates all rights.

Select [End of List] at the Type of Access field to complete the definition.

You are taken back to the screen 'Security Levels for Company' at a blank field following the one you just created, viz., Manager. If you have any other level to create, simply type the name and follow the same procedure. Otherwise press [enter] at the blank field to accept and return from this screen

Users and Passwords

You would need to create different users who belong to one or more different security levels or types of security. Select the option at the Security control menu to define users, give their passwords and their security levels. Only the administrator can assign users and their passwords.

You need to create security levels first and then users.

Alter/Display a user or type of security

There is no separate menu option to alter or display a security option. Use the same menu to display or alter user or security level set-up. To delete a user, simply blank out the user name and accept the screen. Do the same for a security level. Obviously, if you have defined a user under a security level, then the security level cannot be deleted before deleting the users under it

Backup

Tally has a flexible back-up mechanism wherein you can take a backup of the data from virtually any storage medium into any other medium.

The more commonly used media are floppy drive, hard disk drive, zip drive, tape drive, etc - installed either locally or on a network. In the backup screen, the source of the backup and the destination of where it has to be stored has to be given, Tally will do as required

Restore

Restore literally means 'to bring back'. Similar to backing up of data, Tally allows restoring of data from any medium into any other storage medium. In Tally's context restore means – we have a Tally backup and we wish to work on the data backup instead of the current data – this can be achieved by simply restoring from the existing data backup.

How to Restore:

• Start Tally If the Company Information screen is loaded first – there is a menu option "Restore". Select this to get the "Select Companies to Restore" screen. However, if the Gateway of Tally Loads – use Alt+F3 to get the option Restore. Note: as in the case of backup - this option is available only on the Company Information screen.
• The Source and Destination paths displayed here are those that were used last.
• The source field has to have the appropriate path from which we intend to bring back the previous data. Accepting the path will read the contents of the particular file and will then display the list of companies available.
• Select as required and restore the data accordingly

Gateway Of Tally

Account Information Menu

Introduction

• The top bar of the screen contains the product message, system date and time.
• The left hand side of the screen displays the activity status.
• The right side contains the menu system and the button bar. The menu Accounts Info. Is the current active menu.

Main functions in Masters menu

Accounts Information contains the masters as listed in the menu above. Each master has to have the following functions, besides others and are consistent in all Masters menus throughout Tally:-

Create

This enables creation of new masters. Once a master has been created, any modification to it must be done through the Alter mode.

Display

Use this mode to view Master information. Changes are not permitted.

Alter

Use this mode to view and change master information. You cannot create a new master. We shall begin discussion on Accounts Information with how to build Groups and then follow with other accounts masters

Groups

Introduction

(Classification of Account-heads)

Tally follows the 'Single Ledger' concept of accounting, which is the modern way of managing accounts. This is in direct contrast to Subsidiary Ledger Accounting. Thus, all financial entries are performed using ledgers or account heads. Ledger account heads are created to identify transactions. The single ledger concept does away with the need for sub-ledgers and corresponding control accounts in General Ledger. Ledger balances by themselves do not convey much without some form of classification. Tally, therefore, gives you a powerful way to group ledger information, which is meaningful in reports and compliant with laws. Groups, in Tally, serve to both classify and identify account heads according to their nature and enable presentation of summarized information.

Traditionally, grouping of accounts is a post-accounting activity that is done only when reports are needed. This has an inherent drawback of delayed reports that are not available at hand when required. Tally gives you great flexibility in setting up your chart of accounts. It allows you to group your ledger accounts right at time of creating your accounts chart. Your reports and statements will reflect the desired classification at all times. Further, Tally permits you to re-group your ledgers anytime (with some minimal restrictions), should re-classification be necessary. We acknowledge that re-grouping is always possible and would, in practice, be resorted to, when there are changes in the nature of information. However, re-grouping can be done only by a user account that has requisite authority under the access control list.

At the highest level of grouping, accounts are classified into capital or revenue - more specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set of reserved groups and allows you to modify their names or create sub-groups.

The concept of sub-groups

Groups have a hierarchical organisation. At the top of the hierarchy are Primary Groups. These are the main asset, liability, income or expenditure groups of accounts that determine the entire accounting and their presentation, i.e., whether a ledger affects Profit & Loss Account (as a revenue item) or goes into the Balance Sheet. The Reserved Primary Groups and subgroups (shown indented) are:

Aliases for the groups are given in square brackets [ ].

Primary Groups of capital nature

1. Capital Account

Reserves and Surplus [Retained Earnings]

2. Current Assets

Bank Accounts

Cash-in hand

Deposits (Asset)

Loans & Advances (Asset)

Stock-in-hand

Sundry Debtors

3. Current Liabilities

Duties and Taxes

Provisions

Sundry Creditors

4. Fixed Assets

5. Investments

6. Loans (Liability)

Bank OD Accounts [Bank OCC Accounts]

Secured Loans

Unsecured Loans

7. Suspense Account

8. Miscellaneous Expenses (Asset)

9. Branch/Divisions

Revenue Primary Groups

10. Sales Account

11. Purchase Account

12. Direct Income [Income Direct]

13. Indirect Income [Income Indirect]

14. Direct Expenses [Expenses Direct]

15. Indirect Expenses [Expenses Indirect

How to manage and operate Groups

Gateway of Tally—>Accounts Info—>Groups.

You may create, alter, or display a single Group or multiple Groups. Single group option is useful when you wish to work on one group at a time. Multiple is a time and labour saving option in a list format and is useful when working on many sub-groups at a time. Once a sub-group is created, it behaves exactly like a group. Any reference to group would deem to include a sub-group.

Creating a group

If you are creating groups for the first time, it is advisable to configure them before you proceed:

You may configure your groups to enable/disable advanced mode.

[F12]—>Acct/Inv info—>Accounts masters

These are the default settings.

(The Masters Configuration screen allows settings for all types of masters, and not just those that are relevant to the current operations. Here, only the two mentioned options are of relevance to accounts masters. Additionally, the ALIAS setting in Master Configuration also affects accounts masters)

Single Group

Gateway of Tally—>Accounts Info—>Groups—>Single Create.

Buttons in single group screens

F3:Company: To work with a different company. In the creation mode, you can create groups in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Cmp: To work on the same report of another company. Available only in display mode.

Groups, Ledgers, Voucher Types:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features:To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure:To change configuration of master information.

Configuration changes affect all companies whereas Features changes affect only the current company.

Name of Group

Enter the name of the desired group or sub-group. (e.g., Administrative expenses).

Alias

Give an alias to allow access the group using the Alias in addition to its name; or leave it blank. (e.g., for Administrative expenses, you can give 'Office

Expenses' or even an alphanumeric code, say 'E001', as an alias)

Under

Specify under which existing (Parent) group the sub-classification is needed. You may create a new Parent Group by using <Alt>+<C>. The use of <Alt>+<C> is explained in the Annexure "Key operations".

Display or Alter a Group

Gateway of Tally—>Accounts Info—>Groups—>Single Display/Alter—> select name from List of Groups

You are allowed to alter any information in the screen except in specific circumstances given below (these apply to multiple alteration of groups as well):

You cannot change the parent or behavioural attributes of a Reserved group. Exceptions are the groups Branches/Divisions and Suspense Account, where the 'Asset' or 'Liability' concept is modifiable. This determines the location of the group in the VERTICAL Balance Sheet only.

Deleting a group

Gateway of Tally—>Accounts Info—>Groups—>Single/Alter.

The Delete function is performed through the single alteration mode. You cannot delete groups from the multiple alteration mode.

Select the group to be deleted.

Press <Alt>+<D> to delete.

You will not be allowed to delete a group if:
it is a reserved group; orthere are sub-groups or ledgers under it.

Ledger

Introduction

In the previous chapter, the concept of groups, as implemented in Tally, was explained. You were also given a number of examples of grouping ledger accounts. You will now learn how Tally is used to work with ledgers. A Ledger is the actual account head to which you identify a transaction. You pass all accounting voucher entries using ledgers. However, as mentioned in the introduction to Groups, all ledgers have to be classified into groups. Hence, a thorough understanding of account classification is important for working with ledgers. We have reproduced certain portions from the groups chapter here.

How to manage and operate ledgers

Gateway of Tally —> Accounts Info. —> Ledgers

Normal users would work with Single Ledger. Hence, we shall discuss the different operations under Single Ledger here.

Creation of a ledger account

The information required for creation of ledgers depends on the features opted by you. If the setting of the Accounting Features [F:11] of your company is No for all options, your ledger creation screen would need minimal information.

It should be noted that Tally automatically creates two ledger accounts, viz., Cash (under Cash-in-hand) and Profit & Loss Account (direct Primary account). It does not make any other presumptions. You must create all other account heads. There are no restrictions in ledger creation except that you cannot create another Profit & Loss A/c (actually an account that behaves like one). You may create any number of Cash accounts (by another name like "Petty Cash" ).

You will, now, be guided to create a ledger account with minimal information. For discussions on additional features, please refer to 'Advanced Usage'.

Gateway of Tally —> Accounts Info. —> Ledgers —> Single Create

Name

Feel free to give the full name of the account. Tally fits it all in. Press <enter> to move to the next field. Tally does not allow duplicate names. The uniqueness check is made here itself instead of after you have entered all other information.

You will find that punctuation and other non-relevant information are ignored by Tally in its recognition of a name, Thus, CST, C.S.T. and C. S. T. are all considered identical.

We have already given you the philosophy of Tally in the first few pages of this manual. You will now actually experience the small conveniences, which you would soon take for granted. You notice that Tally converts the first letter of all relevant words to upper case which helps you speed up your data entry. You need not bother about changing the case every time it is a different word.

Group

All accounts must be classified in their appropriate groups. (You should go through the Chapter on Groups now if you not already done so). You must specify which group the ledger falls under. The method of selecting an item from a popup list has been explained in the chapter on the Philosophy of Tally.

* You may always create a new group by pressing <alt>+<C>.

A Group is not important by itself, but because it controls the usage of ledger accounts. A wrong classification would affect the treatment of the ledger account in final statements and during voucher entry. You can, of course, alter a ledger account to change its group classification at any time.

** alter a ledger or a group from any display by <ctrl>+<enter>.

Display or alter a ledger account

Information in display and alter is the same, hence only alter is discussed. Display option does not permit any modification. Alter option is accessible only to authorised users.

Gateway of Tally —> Accounts Info. —> Ledgers —> Single Alter —> select ledger

You are allowed to alter any information of the ledge master with the exception of the Closing Balance of a ledger account, if any, other than closing balance of accounts under the group 'Stock-in-hand'.

Please refer to 'Advanced Usage' for specifying closing stock values.

Deleting a ledger account

You can delete a ledger from the alteration mode by pressing <Alt>+<D>. Tally does not allow deletion of accounts that have transactions. Therefore, should you wish to delete an account, which has transactions, you must first delete all its voucher entries.

Budgets

Tally allows you to create multiple budgets. There could be a budget for specific purposes, e.g., for the bank, for the head office, optimistic budget, realistic budget, pessimistic budget, etc. Departmental Budgets can also be created, e.g., Marketing Budget, Finance Budget, etc.

As usual, you first create budgets. You can of course alter them.

Budget figures are used to compare against actuals and to display variances. This is done by bringing up a new column when displaying a statement and selecting the appropriate budget.

We shall now go through the creation and alteration of budgets

How to manage and operate budgets

Gateway of Tally —>Accounts Info —>Budgets

Create a budget

Name

Give the budget a name, in this case, Corporate Budget. As you may have other budgets as well, the name distinguishes them.

Under

In the true Tally tradition, you can have a hierarchical budget set-up. At the top level is the Primary Budget. You can set up more than one Primary Budget. Under each Primary Budget, sub-budgets can be created.

Period of Budget

Specify the period of the budget. The period could be a month, a year or any period starting from any date to any date.

Set/Alter Budgets

You may want to set the budget for groups of ledger accounts or for ledger accounts individually .We shall take up budget for group only. Follow the same process for setting budgets for individual ledgers

Voucher Type

Introduction

A voucher is the primary online document for recording transactions. Transaction recording and analysis are greatly facilitated by having specific formats for different types of transactions. Tally provides 16 different predefined voucher formats or what it calls predefined types of vouchers. These are used for recording various transactions. A payment voucher is used for all types of payments, a receipt voucher for all types of money receipts, a sales voucher for recording sales transactions, and so on.

These predefined vouchers fulfil your normal transaction needs. They pertain to both accounting and inventory. Some of these vouchers can also be used differently according to the situation, e.g., sales vouchers can be used as invoices, vouchers can be post-dated, etc. Such use can be decided at the time of voucher entry by selecting the appropriate button.

Create a voucher type

Create a new voucher type

Gateway of Tally —> Accounts Info. —> Voucher Type —> Create

 

Name

Give the name of the new voucher type, e.g., Bank Payment Voucher.

Type of Voucher

The type of voucher should be any one of the predefined voucher types (listed in introduction above). The new voucher type would inherit the properties of this predefined voucher type. It would function exactly like the predefined voucher.

Abbreviation

An abbreviation is required particularly for unformatted reports, which do not use compressing techniques. (Tally allows printing of both formatted and unformatted reports). In this example, give 'BPymt' as the abbreviation. Though there is no restriction on the length of the abbreviation, it should preferably be five characters or less.

Method of Voucher Numbering

This is, perhaps, one reason for your opting for a new voucher type. There are three methods available:

Automatic - instructs Tally to number the vouchers of this type incrementing automatically.

Manual - if you wish to number the vouchers yourself.

None - if you do not want any voucher numbers for vouchers of this type.

Starting number

Give the number for the first voucher. Usually it is 1. You can set it to any number you want. Tally will auto-increment from this number for subsequent vouchers. However, the numbering of vouchers also depends on other variables supplied by you, which follow hereafter.

Width of Numerical Part

You may leave it blank to let Tally automatically adjust the width according to the number. However, for more aesthetically aligned look in reports, you may keep a fixed width, e.g., 3.

Currencies(Multiple currencies and foreign exchange)

Introduction

For many organisations, globalisation of business has necessitated working with more than one currency. Transactions are often made in currencies other than the home currency. Such transactions have to be recorded either in the home currency or in the foreign currency. If they are recorded in home currency, the rate at which the foreign currency is exchanged for the home currency should be recorded as well. Sometimes you need to record the transaction in foreign currency itself. This would arise when you maintain the balance of the concerned account in foreign currency. Tally uses the term base currency for the currency in which your account books is kept (typically in home currency). Foreign Exchange is used interchangeably with foreign currency.

You had, of course, specified your base currency while creating the company.

Tally has attempted to make the complex task of handling multiple currencies very easy for you. You would find some new ways of working with multiple currencies, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.

The Balance Sheet and Profit & Loss Account of the company will always be maintained in the base currency. Conversion of foreign currency account balances will be done as per rules set by you. An explanation on the rules will be given below.

** You must assess the need for using multiple currencies. Quite often, all you need is conversion of foreign currencies to base currency at the time of recording a transaction. This may easily be obtained with the calculator. If you experience foreign exchange gains or losses, or have a foreign currency bank account or need to maintain accounts in different currencies, then by all means take advantage of Tally's comprehensive forex management features.

Managing and operating multiple currencies

You must first activate multi-currency capabilities.

Gateway of Tally —> [F11]:Features

Gateway of Tally —> Accounts Info. —> Currencies

The Currencies menu has the usual create, display and alter options. There is an additional option, Rates of Exchange. We shall examine each option in greater detail.

Create a foreign currency master

You will now need to create the foreign currencies that would be used.

Gateway of Tally —> Accounts Info. —> Currencies —> Create

Symbol

Give the Currency symbol, as it should appear in all reports. If your keyboard does not have the symbol, you may use ASCII special characters with [Alt] key combination. Utilities like Character Map in Windows will give the key combination for most symbols. Some notebook computers may not easily allow input of special characters through [Alt] key combination. Consult the computer's user manual or ask the vendor.

Tally prevents you from having duplicate symbols.

Formal Name

This is meant for the name of the currency, e.g., U.S. Dollars, Pound Sterling, Indian Rupees, etc. You are not allowed duplicates.

Advanced users would be interested in the main reason for requiring a formal name.

Suppose you have two companies, viz., Tally Demo & Company and Tally Demo. Each company would have its own set of currencies. In one you may have used the symbol $ for Australian Dollars and in the other the symbol $ may be for U.S. Dollars. You might have occasion to compare an account in the two companies (by using New Column in displays). For proper comparison, you would want the accounts in the same currency. Since the symbol is the same but refer to two different currencies, The Formal Name is used to distinguish them. How does it do it?

The company that has been loaded first will retain the original symbol for display purposes. The other company's currency symbol will be prefixed with the first letter of the formal name (or as many letters as necessary to make it unique). E.g., If Tally Demo is loaded first and then Tally Demo & Company, the symbol $ will remain for Australian Dollars in Tally Demo. In Tally Demo and Company, the symbol $ will be prefixed with the letter U which is the first letter of its formal name. Though you may not appreciate the significance when working within one single company, it will be quite apparent when you wish to compare data with another company.

Number of Decimal places

Give the number of decimal places for the currency. You cannot specify the name for loose change e.g. pence, cents, paisa etc. Hence, you must specify decimal places. Some currencies have 2 decimal places, e.g. paisa; some have 3, e.g., Dinar. Still some others do not have any decimal places at all, e.g., Vietnamese Dong.

You are not permitted to change the number of decimal places once you have used the currency in entry of transactions.

Show amounts in millions? (Yes/No)

Tally has two formats for displaying an amount, viz., in millions and in lakhs. 1000000 (one followed by six zeroes) in millions format would appear 1,000,000 and in lakhs 10,00,000.

Selecting 'No' would mean you want amounts to appear in lakhs.

Is symbol suffixed to amounts? (Yes/No)

Normally currency symbols are prefixed. However, if you want it to appear after the amount, select Yes.

Put a space between amount and symbol? (Yes/No)

This is purely for aesthetics. Select Yes for amounts to appear like $ 100/, No for $100/-.

If you put a '.' after a prefixed symbol, do not opt for a space. This could be found suitable for currencies like Rs. where amounts would appear Rs.100/-

Display

The Display screen is identical to the create screen. Use it to display the particulars for a currency.

Alter Currency

If you do not have multiple currencies, the Alter screen is identical to the Display screen. When you have more than one currency,

Select the currency whose details are to be altered.

Change any of the particulars. You may even delete the currency here by using [Alt][D], provided you have not used it in any voucher.

The specified rates of Exchange can also be altered. Specified rates are those input by you through the Rates of Exchange menu (discussed below) or may even be input now. Specified rates are usually the rates quoted in the newspapers or obtained from banks. The actual transaction rate may vary depending on the fluctuation in the exchange rate.

Rates of Exchange

The screen always comes up in Alter mode:-

Date for Rates of Exchange

Rates of Exchange operate on day-to-day basis. Hence, you can specify the rates of different currencies for a day.

(Note the date column in the previous Alter screen).

Standard Rate

The standard rate is used to calculate variances from the actual transaction rates. You may choose to leave it blank.

Selling Rate – Specified Rate

This is the rate obtained from the daily newspaper or your banker. If you input this rate before any transaction entry, while entering a foreign exchange transaction, this rate will be brought up by default. (You may still change the actual rate). Selling rate is your selling rate (as opposed to bank's selling rate. Banks will buy currency from you in this case) used for receipt voucher entry where you receive foreign exchange. This foreign exchange would be sold to your bank (which buys it at its buying rate).

The actual rate at which the currency was last used is displayed and cannot be changed.

The specified rate is used for calculating foreign exchange variances only in case there is no standard rate.

Buying rate – specified rate

This is the rate at which you would buy the foreign currency (as opposed to bank's buying rate. Banks will sell currency to you in this case). Hence, it is used in payment vouchers.

The actual rate at which the currency was last used is displayed and cannot be changed.

Tally calculates Gain or Loss in foreign exchange transactions automatically using the standard rates, specified rates and actual transaction rates. In the chapter under Voucher Entry, we shall examine how to handle foreign exchange transactions

Inventory Information

The different inventory information that you would provide to Tally by way of masters are:

Gateway of Tally—>Inventory Info 

Stock Items

Like Ledgers, Stock items are the primary inventory entity. You will use stock items while recording their receipts and issues. This is lowest level of information about your inventory. Each item that is required to be accounted for, needs to be created. In fact, you will create a stock ledger account for each item and Tally calls this account 'Stock Item'.

Stock Groups

Stock items can be grouped together under Stock Groups to reflect their classification based on some commonality. Grouping would enable easy location and reporting of stock items in statements. Hence, items of a particular brand can be grouped together so that you can extract stock of all items of that brand. For example, create Stock Groups like Sony, Maxell, Verbatim. Your stock items could then be Sony 3.5" disks, Maxell 3.5" disks, Sony tapes, Maxell tapes, etc. Classify the Sony products under the Stock Group Sony. Now you have ready details of all Sony products suitably classified. You may even group items as Raw materials and Finished Goods.

You can create sub-groups of Stock Groups for deeper analysis.

Stock Groups

Gateway of Tally—> Inventory Info—>Stock Groups

What is a Stock Group?

The concept of stock groups has been explained above. Before we consider stock groups you would need to know about stock items. Like Ledgers, Stock items are the primary inventory entity. You will use stock items while recording their receipts and issues. This is lowest level of information about your inventory. Each item which you want to account for , needs to be created. In fact, you will create a stock ledger account for each item and Tally calls this account 'Stock Item'.

Stock items can be grouped together under Stock Groups to reflect their classification based on of some commonality. Grouping would enable easy location and reporting of stock items in statements. Hence, items of a particular brand can be grouped together so that you can extract stock of all items of that brand. For example, create Stock Groups like Sony, Maxell, Verbatim. Your stock items could then be Sony 3.5" disks, Maxell 3.5" disks, Sony tapes, Maxell tapes, etc. Classify the Sony products under the Stock Group Sony. Now you have ready details of all Sony products suitably classified. You may even group items as Raw materials and Finished Goods.

You can create sub-groups of Stock Groups for deeper analysis

Creating a stock group

Gateway of Tally—>Inventory Info—>Stock Groups—>Single Create

Name

Give the name of the stock group. Here we wish to create a group Sony.

Under

Specify whether it is a primary group or a sub-group of another group. Select from the pop-up list. Here we select Primary from the list.

Use Alt+C to create a parent if you do not have the group you want in the list.

Can quantities of items be ADDED?

This really pertains to information on the stock items that you would create under this stock group – Sony in this case. The stock items created under the group should have similar units to be 'addable'. You obviously would not want to add Kgs with Pcs (where you have a group like 'Consumables' and items like 'grease' and 'rag cloth' which are measured in kg and metres respectively). We select Yes here because we want to create items like floppy disks and disk drives etc which at this point we feel would be addable and the total meaningful. You may later set it to No, if you find that the totals do not make sense. It is, possibly, easier to set it to No initially and later set it to Yes on assessing the item units in the group.

Buttons in single mode stock group creation

Items

Location

Vch Types

Units

Currency

You may switch to these master types to create them. Currency option is activated only when you have opted for multi-currency in [F11]:Company Features.

Display or alter a stock group

Gateway of Tally—>Inventory Info—>Stock Groups—>Single/Multiple Display\Alter

 Select the stock group whose particulars you wish to display. When you display or alter a stock group the information entered while creating it is displayed.

** Display from this mode is for master information only. You will not obtain any balances for a stock group here. Use the Display option from the Gateway of Tally for display of balances and transactions.

** In earlier days of computing, one would look at the master information for balances. Tally believes that balances are a logical consequence of the transactions; hence, they should be available with the transaction summaries. You would find all summaries and details through the Display option in the main Gateway of Tally.

Delete a stock group

** You can delete a stock group only if it does not have any children under it. The children could be stock group or stock item or both.

Gateway of Tally—>Inventory Info—>Stock Groups—>Single Alter

Press [ALT]+[D]to delete the stock group

You cannot delete a stock group from multiple mode.

Stock Items

Gateway of Tally—>Inventory Info—>Stock Items

What is a Stock Item?

A stock item needs no explanation. However, what needs to be explained is how Tally uses it. Tally uses the phrase to include what traditional accountants would call a stock ledger account. All the stock items together would make up the stock ledger. However, Tally does not use the term stock ledger. So to display a stock ledger, display the stock items. You can draw a parallel to ledgers in accounting for stock items in inventory

Creating a stock item

(Please refer to the Advanced Usage section for other fields/information that would appear if activated in the Inventory configuration and company features. This section deals with creation of basic stock item ).

Gateway of Tally—>Inventory Info—>Stock Item—>Single Create

Name

Give the name of the stock item. Here we wish to create an item Sony Disks 3.5".

Alias

This is for alternative names of stock items.

Under

Specify the group to which it belongs. The different groups that we had created were Sony, Maxell and Computers. These as well as Primary would appear in the pop-up list. Select 'Sony' from the pop-up list.

Use Alt+C to create a parent if you do not have the item you want in the list.

Units

Give the unit of measurement of the item here. You would normally use this unit for trading in this item. Select Box on 100 Pcs from the popup list. Please refer to the section 'Units' for explanation of units. As usual, use [alt]+[C] to create a new unit.

Display or alter a stock item

Gateway of Tally—>Inventory Info—>Stock Items—>Single/Multiple Display or Alter

Select the stock item whose particulars you wish to display. When you display or alter a stock item, the information entered while creating it is displayed.

Delete a stock item

** You can delete a stock item only if it has not been used form transaction entry.

Gateway of Tally—>Inventory Info—>Stock Items—>Single Alter

Press [ALT]+[D]to delete the stock item

You cannot delete a stock item from multiple mode.

Locations/godowns

You may want to distinguish between stock held on-site and at the warehouse, and this can be done by creating two separate stock locations. You may even amend Tally's default location and create a new location for the warehouse. Tally permits any number of locations that can be grouped and sub-grouped to match the structure you need.

Create a location

Gateway of Tally—> Inventory Info.—> Locations—>Create

Name

In the Name field, give the name of the location.

Alias

Give an alias for the name, if required.

Under

Give the location under which this location is to be sub-grouped. Use [alt]+[C] to create the parent location. Select primary if it is not a child of any location

Voucher Types

This is exactly similar to Voucher Types under Accounting section. Please refer to that section. You may wish to alter existing inventory voucher types or create new ones based on those existing.

 

 

Units of measure

You will need to create units of measure for stock items. These can be simple units such as numbers., metres, kilograms, pieces, or compound units, e.g. box, where, say, one box equals ten pieces.

Create a unit of measure

Gateway of Tally—>Inventory Info.—> Units of Measure—> Create

Symbol

Give the symbol of the unit, e.g., No., Mtrs. This symbol given by you is used in all displays and printouts. We give the symbol 'no' (for numbers.

Formal Name

Give the formal name of the symbol. This explains the symbol, which is also used during consolidation of data of different companies where the symbols might be the same but are assigned to different Units. The formal name will be used to match them. Here we type Number as the formal name for the symbol 'no'.

No. of decimal places

If the unit will be used in fractions, say for a kilogram you may have to use grams as well, give the number of decimal places. For kilograms, you would give 3 decimal places to accommodate up to 999 grams. Hence, a measure 1 kilogram 865 grams will be 1.865 kilograms. For units like numbers, you do not normally want a decimal place and you can specify 0 in such cases. You can specify 0 to 4 decimal places.

voucher entry

The voucher entry screen

 

The main voucher entry area - This is where you enter your transactions This screen contains fields for date, ledger name and amount as well as additional pop-up screens that are dependent upon your voucher configuration.

Direct commands area - displays the commands you type into this area, and in the current version of Tally, is limited to calculator functions.

Buttons toolbar - displays buttons that provide quick interaction with Tally. Only buttons relevant to the current task will be visible.

Switching between screen areas

On selecting Voucher Entry from the Gateway of Tally, you are taken to the main voucher entry area. However, you may toggle between this and the Direct Commands/Calculator area at the bottom of the screen, by pressing [Ctrl] + [N] or [Ctrl] + [M] as indicated on the screen. The active area of the screen is highlighted by a green bar. [Ctrl] + [N] to go to the Calculator/Direct Commands area and [Ctrl] + [M] for the voucher entry area.Use calculator by [ALT]+[C] when in amount field.

Types of vouchers

Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard vouchers are:

-Payment voucher

-Receipt voucher

-Contra voucher

-Sales voucher

• Sales Orders
• Sales vouchers/invoices

-Purchase voucher

• Purchase Orders
• Purchase vouchers

-Journal voucher

• Credit Notes
• Debit Notes
• Journal

-Memo voucher

-Stock Journal

-Physical Stock

You can alter these vouchers to suit your company, and also create new ones. For example, if you wish to distinguish between cash and bank payments you can create

Buttons in a typical voucher entry screen

F2:Chg Date. Use this button to change the date of the voucher.

F3:Chg Comp. This would allow you to switch to another loaded company and enter a voucher in it. Therefore, you can, almost simultaneously enter vouchers for more than one company.

F4:Contra voucher

F5:Payment voucher

F6:Receipt voucher

F7:Journal. This is split into Journal, Debit Notes and Credit Notes

F8:Sales

F9:Purchase

F10:Memos

F7: Stock Journal

F10: Phys.Stock. This allows recording of physical stock in hand as distinct from computed stock figures.

F11: Features

F12: Configure

Printing invoices and vouchers

You can print any voucher or invoice by pressing [ALT]+[P] or clicking on the button [Print]. Do this before saving the voucher. You or your administrator may have configured the voucher type to print automatically after saving the voucher.

You can always configure the printing options by selecting the appropriate buttons.

You can give additional information, change titles, print additional pages, change printer settings, etc.

The buttons [Pre-Printed] and [Quick Format] are toggles for [Plain Paper] and [Neat Format] respectively. These are print specifications that you give. Pre-printed is for pre-printed stationery. Quick Format does not give fonts or other niceties but is ideal for fast printing. Select copies and give the number of copies to be printed. 1 is the default. You can set the default number of copies in Invoice Printing Configuration

(Gateway of Tally —>F12:Configuration —> Printing

.Display/Alter a voucher/invoice

You can display a voucher or alter it (subject to authority), by simply drilling down any display screen. For example, from the Balance Sheet, press [enter] on the group Sundry Debtors, then on the ledger Response Tech Ltd which brings up its monthly summary. Continue the selection process till you see the list of vouchers and then the voucher itself. You may opt to alter a voucher by going through the ledger display screen or the Day Book. Since the display interfaces are identical, feel free to use the path most convenient for the circumstance.

Display Account books & statements

Books of account record the individual transaction details you have entered. Although you may post items to many different ledgers, Tally brings all the transactions of one category together into a book of account for viewing and printing. For example, the Cash Book records all the transactions affecting cash, the Sales Book records all the sales transactions.

Statement of Accounts pertain to cost centers and outstanding analysis. These are derived from individual transactions but are not statutory requirements.

Financial statements on the other hand are still derived from individual transactions but tend to show summary totals, ratios and statistics, analyzing a company's financial data in a wide variety of ways. Typical financial statements include the Balance Sheet, Profit & Loss A/c, and Cash Flow Analysis. Financial statements are usually statutory requirements in most countries.

• All books are displayed first as a monthly summary with opening and closing balances.
• Select a month and press [enter] to display all transactions for the month. The opening and closing balances as well as transaction totals are also displayed.
• Select a transaction to bring up the voucher. This voucher comes up either in display or in alteration mode depending upon the access rights available to you.

** This is a typical display method and is available from most places, including statements. For example, even from a Balance Sheet, you would first display the group summary, then the ledger monthly summary and finally the transaction voucher itself.

Let us see some typical examples of how to display the books of account and financial statements. You will then be able to experiment with other statements for yourself.

Balance Sheet

Gateway of Tally—> Balance Sheet

• Select Detailed to give break-up of the grouped figures.
• Select F12: Configure to bring up the Configuration screen. Select options and observe the new display.

Select New Column and enter a date range, e.g., 1-1-97 to
1-5-97 to show the change in the balance sheet since 1st May

• Scroll down to highlight Net Profit and press Enter. This takes you to the Profit and Loss screen. Select F1: Detailed to show a more detailed report.
• Place the cursor on any amount in the column for 16-12-97. Select Alter Column. Change period to 1-1-97 to 31-5-97 and valuation to Last Purchase Cost. Notice the change in closing stock value and consequently the change in profit figures.

Trial Balance

Gateway of Tally —> Display —> Trial Balance.

• Select F5: Led-wise to obtain a display of the ledger balances.
• Select F12: Configure and just change the Sorting Method to Amount-wise (Decreasing).
• Select F12: Range and in the Range of Information in Report screen, set up Ledgers having Closing Balance greater than 20000.
• To exit, keep pressing [Esc] until you return to the Gateway of Tally menu.

You are welcome to experiment. It is simply your opportunity to explore the powerful display features of Tally. You have seen some of the reports and how they can be stepped-through, configured and modified, so use that knowledge to try similar and new things on the other reports.

For example, you might like to look at the following:

• Ratio Analysis - try using F12: Configure to put it into vertical format and then using New Column to compare month-by-month data.
• Cash Flow - try changing the period to 1st May to 31st July and then using F12: Configure to show a weekly analysis and adding a graph to the display.
• Outstandings (Ledger) - try using Enter and the arrow keys to step-down to voucher level and then back up again using [Esc].

For example, the company withdraws cash from the bank for petty cash or transfers funds from one bank account to another.

Display inventory reports & statements

Tally prepares the inventory reports based on the vouchers you have entered to date. You can then vary the appearance of reports according to your needs, for example, to make comparisons between different companies, periods of the financial year, and so on.

In each case, when you display a report, you can step-down to the next level of detail by highlighting the item and pressing Enter, and you can keep going until you reach an individual voucher. Similarly, you can step back to higher levels by pressing [Esc]. The special features available for the currently displayed report are indicated on the button bar, and can be selected with a single click of the mouse.

In other words, inventory operates in exactly the same way as accounting regarding displaying, modifying and printing the reports, and so you can use the knowledge gained during the accounting module to good effect with inventory.

Because it is very similar in operation, the function of the buttons on the button bar and the various printing options are not repeated here. Instead, this unit concentrates on highlighting some of the special inventory screens, before giving you the opportunity to practice

Examples on displaying inventory reports

Stock Summary

Gateway of Tally —> Display—> Statements of Inventory —>Stock Summary

• Use the buttons to configure this report. E.g. Select F2: Period to change period to, say, 1-1-97 to 31-5-97.
• Select Detailed to show list of items under the stock groups.

Auto Column, Half-yearly and No. You should now have three columns showing the stock groups and items at the end of May, June and July.

• Position the highlight over Software and press Enter to see the next level of detail, and so on.
• Keep pressing [Esc] to return to the Gateway of Tally. Select Stock Summary again.
• Select New Column. Tab down the Column Details menu to Method of Stock Valuation and select Std. Price. You should now see two columns displaying the same details, the first at Cost Price (default) and the second at Std. (Sales) Price.
• Highlight Systems and press Enter.
• Select F1: Detailed to see the location breakdown.
• Keep pressing [Esc] to return to the Gateway of Tally.

viewing stock items

• Gateway of Tally—>Display—>Inventor Books—>Stock Item.
  You may go through the Stock Summary as well. Simply place the cursor on the item and press [enter].
• Select an item from the List of Items.
• Select F12: Configure. Tab down the Configuration menu to Show with Graph? and type y and press Enter. Select Bar and No. You should now see the particulars displayed with a graph of goods inwards and outwards (red for inwards and blue for outwards). 

Special Key Combinations

Key Combination	Function	Where available
ENTER	To accept anything you type into a field. To accept a voucher or master To get a report with further details of an item in a report.	You have to use this key at most areas in TALLY. At the receivables report – press Enter at a pending bill to get transactions relating to this bill (e.g., original sale bill, receipts and payments against this bill, etc)
ESC	To remove what you typed into a field To come out of a screen To indicate you do not want to accept a voucher or master.	-------------------do---------------
CTRL + A	To accept a form – wherever you use this key combination, that screen or report gets accepted as it is	At almost all screens in TALLY, except where a specific detail has to be given before accepting.
CTRL + Q	To abandon a form – wherever you use this key combination, it quits that screen without making any changes to it.	At almost all screens in TALLY.
ALT + C	To create a master at a voucher screen (if it has not been already assigned a different function, as in reports like Balance Sheet, where it adds a new column to the report)	At voucher entry and alteration screens, at a field where you have to select a master from a list. If the necessary account has not been created already, use this key combination to create the master without quitting from the voucher screen.
ALT + D	To delete a voucher To delete a master (if it has not been already assigned a different function, as explained above)	At Voucher and Master (Single) alteration screens. Masters can be deleted subject to conditions, as explained in the manual.
ALT + I	To insert a voucher	At List of Vouchers – inserts a voucher before the one where you positioned the cursor and used this key combination.
ALT + A	To Add a voucher	At List of Vouchers – adds a voucher after the one where you positioned the cursor and used this key combination.
ALT + 2	To Duplicate a voucher	At List of Vouchers – creates a voucher similar to the one where you positioned the cursor and used this key combination
SHIFT + ENTER	To explode a line into its details	In almost all Reports: At a Group/Stock Group/Cost Category/Godown/Stock Category – displays Sub Groups and Ledgers/Stock Items/Cost Centres/Secondary Godowns/Secondary Stock Categories At a Stock Item – At a Voucher – displays its entries and narration At a Stock Item- displays its godowns and batch details
CTRL + ENTER	To alter a master while making an entry or viewing a report	At voucher entry and alteration screens At all reports
ALT + R	To remove a line in a report	At all reports
ALT + S	To bring back a line you removed using ALT + R	At all reports

Lab Exercise

Exercise 1(i)

From the following information create a company

     Directory: c:\account\data

·        Name of the company:Chaudharysite

·        Address: Chitwan

·        Ph. No.:+977-9845139086

·        Email: chaudharysite@yahoo.com

·        URL: www.rajblogroom.blogspot.com

·        Vat Reg. No.:2658/2000

·        Company has maintaining Account and Invantry both

·        (the company is newly established and transactions starts from 1-1-2005)

·        You have to maintain security control user name vivek and password blank

·        Use 2 decimal places, currency symbol NRS. And put a space between amt. and symbol

Back up the data in d: drive and delete the data folder of C:\tally\data. Now restore the data and open the company.

Exercise 2

1.     Bina started a business with cash        Rs 4,00,000

2.      Cash deposited in to bank                  Rs 1,00,000

3.      Bought goods from Sharma on cash  Rs 50,000

4.     Purchase goods from Sarad                Rs 40,000

5.      Sold goods to Asha                            Rs 30,000

6.     Salary Paid to Rita                               Rs 3,500

7.     Telephone bill paid                               Rs 1,200

8.     Wages paid                                         Rs 500

9.     Cash paid to Sarad                             Rs 40,000

10.            Computer Purchase from Asian Trade       Rs 25,000

11.            Depreciation cut for machinery       Rs 1,200

Journalized the above transition in require voucher and post them in to ledger

Exercise 3

Journalized the following transition in require voucher and post them in to ledger

1)    Started a business with                                   Rs 5,00,000

2)    Cash deposited in to bank                               Rs 2,00,000

3)    Furniture bought                                             Rs 20,000

4)    Purchase goods                                              Rs 50,000

5)    Sold goods                                                     Rs 4,000

6)    Purchase goods from Mohan                           Rs 10,000

7)    Telephone Charge paid                                    Rs  500

8)    Typewriter bought                                          Rs 6,000

9)    Computer bought                                           Rs 15,000

10)Goods sold to Kabita                                      Rs 2,000

11) Withdraw cash from bank                              Rs10,000

12) Cash received from Kabita                             Rs 1,000

13) Bought 50 shares of Nabil bank to @100

14)paid salary                                                     Rs 20,000

15) Traveling expense                                         Rs 4,000

16) Bought goods from Shrma for cash               Rs10,000

17) Sold ,goods to Rita                                        Rs 2,000

18) Sold goods to Madan for cash                       Rs 5,000

19) Purchase equipment                                      Rs 40,000

20) Cash paid                                                      Rs 3,000

21) Cash received from Sita                                Rs 1,000

22) Paid office rent                                              Rs 30,000

23)Paid taxi fare                                                  Rs 200

24)Took loan from bank                                      Rs 20,000

25)Paid wages                                                    Rs 200

26) Bought 20 shares of Himilayan Hotel @ Rs 150

27)Bought 20 pens,20 boxes, 40 files @ 20,40, 10 per unit

Item Name                Quantity       Rate

108keys Keyboard       36 un        250.90

128 Mb Ddr Ram         44 un      1,650.82

128 Mb Sd Ramp4        28 un      1,609.67

1.44 Mb Fdd            1 un        570.86

1.44 Mb Floppy With Box    133 un     28.50

1.7 Ghz Celeron        41 un      4,159.82

1.8 Ghz Pentium        15 un      9,972.62

40 Gb Hdd 5400rpm      52 un     4,492.04

52x32x52 Cd Rw         34 un      2,864.77

52x Cd Rom Samsung     13 un     1,556.32

56.6 K Internal Modem  38 un     514.43

810 Est P3 M/b         12 un     3,353.85

Atx Casing P4          74 un     1,502.11

Audio Cable            20 un     21.00

Bios Battery           19 un     28.00

Blank Cd Writable      899 un     13.12

Cd Bag                 26 un     98.68

Cd Box                 88 un     10.25

Cd With Box            67 un     35.64

Converter              17 un     27.73

Cpu Fan P4             63 un     256.34

Data Cable             81 un     27.75

Fdd Cable              10 un     25.00

Glass Filter 14"       34 un     127.13

Head Phone Big         14 un     190.81

Head Phone Small       10 un     196.52

Intel 845 Glly M/b     19 un     4,802.63

Intel 845 Glva M/b     20 un     4,880.95

Intel 845 Gvsr M/b     12 un     4,747.50

Exercise 4

 Create stock group and stk. Item and make entries for the given data.

Journalize the following transactions in the book of cse system and office automation.

1.   sold bios battery 15un @35 to technopark

2.   sold fdd cable 5 un@35

3.   sold keyboard 108 keys to Nepal bank ltd 2 un @300 add given Rs 10 trade discount

4.   purchased goods from csesoa ktm and received 2% discount
a)Cd bag 10 @120 b) 56.6k internal medium 5@600 c) converter 17@30
d) Intel 845 glly Mother board 1@4900

Exercise 5(i)

Journalized the following transition in require voucher and post them in to ledger

• Promad started a business with capital          Rs 20,000
• Purchase goods from Sohan                         Rs  5,000
• Paid cash to Sohan                                       Rs  2,000
• Sold goods to Suresh                                   Rs 3,000
• Received cash from Suresh                           Rs 1,000
• Purchase goods from Sohan                         Rs 2,000
• Paid salary                                                   Rs 1,000
• Bought postage and stamps                         Rs 100
• Purchase furniture                                        Rs 3,000
• Paid rent                                                      Rs 1,000
• Paid telephone charge                                   Rs 200
• Received cash from Suresh                           Rs 2,000
• Purchased typewriter                                    Rs 5,000

Exercise 5(ii)

Journalized the following transition in require voucher and post them in to ledger

1. Rajesh started a business                                   Rs 20,000

5. He purchased goods from Rajib                          Rs 4,000

8. Paid cash to Rajib                                               Rs 2,000

10. Sold goods to Rakesh                                      Rs 4,000

15. Received cash from RAkesh                              Rs 6,000

20. Purchased goods from Rajib                             Rs 4,000

25. Paid to Rajib                                                    Rs 2,000

30. Sold goods to Rakesh                                      Rs 4,000

31. Received cash from Rakesh                              Rs 2,000

Exercise 6

Journalized the following transition in require voucher and post them in to ledger

1.     Ram Start a business with capital Rs, 100,000/-

2.     Purchased a Computer Rs, 20,000/-cash paid Rs, 10,000/- and Remaining on Credit with Shyam.

3.     Rs, 90,000/- Deposited on Himalayan Bank.

4.     Purchased Furniture amounting Rs 30,000/- and paid cheque.

5.     Service Charge Received Rs, 50,000/-

6.     Advance Received Rs, 10,000/-

7.     Salary Advance Rs, 5000/-

8.     Company paid Rs, 25,000/- salary to staff with adjusting advance paid.

9.     Rajesh Paid Tuition fee Rs, 30,000/-

10.      Anish Deposited Rs, 20,000/- On Bank for Tuition Fee.

11.      Loan taken from Mr.Adhikari Rs, 200,000/-

12.      Cash Deposited at Bank Rs, 150,000/-

13.      Prepaid Rent Rs, 5,000/-

14.      Repair and Maintenance Expenses Rs, 3000/-

15.      Loan Given to Mr.Roshan Rs, 40,000/- By Bank.

16.      Loan repayment Rs, 100,000/- with Interest Rs, 6000/-

Exercise 7

Post the transaction into purchase book

1.     Purchase thousand paper to make 100 copy @ of 100

2.     Purchase staplers 2@of 50

3.     Purchase ink 10 @ of 25

4.     Purchase pin box 2@ of 25

5.     Sold 50 pieces of copies @ of 150

Exercise:- 10

Journalized the following transition in require voucher and post them in to ledger

Opening Balance Of:

Ø      Bank 10,00000/-

Ø      Loan taken 500,000/-

Ø      Share Capital 200,000/-

Ø      Share Investment 50,000/-

Ø      Land & Building 1000000/-

Ø      Sundry Debtors 100000/-

Ø      Sundry Creditors 20000/-

Ø      Salary Prepaid 10000/-

Ø      Advance Received 5000/-

1.           Loan Repayment Rs 200,000/- with Interest 5000/-

2.           Cash received Rs, 80,000/- of sundry debtors 20,000/- is doubt full but not W/off

3.           Investment of share refund with interest Rs, 8,000/-

4.           50,000/- Salary paid with adjusting prepaid.

5.           Mrs, Rita Entered on business with capital Rs, 20,000/-

6.The Amount of advance received transfer to Income A/c

Exercise:- 11

William Jones commenced business on the 1^st January. The following were his transactions for the first month: -

January                                                                                                 Rs.

1.   Commenced business with ………………………………………..25,000

      Paid to bank……………………………………………………………23,500

      Purchased Furniture, paid by cheque…………………………….2,000

3.   Bought goods from James Harrison and Co. …………………..5,400

      Sold goods to William Adams               ……………………………….4,800

      Installed Telephone under Own your Own Telephone Scheme,

      Paid by cheque                                   ………………………………..2,000

7.   Bought goods from James Harrison and Co………………………6,450

8.   Paid for Office stationery in cash …………………………………..80

      Sold goods to H. Allan & Co.               ……………………………….5,350

10. Received cheque from William Adam        (discount allowed Rs. 120)…………………………………………………………………..4,680

11. Paid James Harrison & Co. by cheque                       (discount received rs. 270)……………………………………………………………..5,130

12. Paid 3 months rent to 31^st March, in cash……………………….400

13. Bought goods from H. Kershaw            ………………………………….7,400

15. Paid wages in cash                              …………………………………….80

      Paid office expenses in cash                 ……………………………………70

17. Bought goods of W. Smith & Co.          ………………………………….6,250

      Sold goods to H. Hobson                     …………………………………..3,200

19. Sold goods to Wm. Adams                   …………………………………1,600

21. Sold goods to H. Allan & Co.                ………………………………….2,500

      Received from H. Hobson’s cheque ………………………………….1,000

22. Paid wages in cash                              ………………………………………80

      Paid office expenses in cash                 ……………………………………50

25. Paid W. Smith & Co. by cheque in full settlement ……………….6,130

26. Received cheque from H. Allan & Co. in full settlement ………..5,200

Exercise:- 12

Journalize the following transactions.

2005-1-1                     Started business with Rs.500,000\-

                                    (Ram Rs.250,000 and Shyam Rs.250,000\-)

2005-1-1                     Cash deposit into HBL Rs.400,000\-

2005-1-2                     Purchase of furniture Rs.80,000\-

                                    Purchase of office stationary 5,000\-

   [Both furniture and office stationary is paid by cheque no.01275       and 01276)

2005-1-3                                          Loose tools purchased from Technopark for official use Rs.5000\- and paid Rs. 2000\- only through cash.

2005-1-4                                          Loan taken from Lumbini Bank Rs 200000@interest 16% annual

2005-1-5                                          A. Fund Rs. 2000 transferred to petty – cash of Ram Cheque No. 01277.

B. Tea expenses Rs. 80 paid to Chinimaya. Paid by petty cash fund.

C. Purchase of goods from CSE-SOA Kathmandu and send 50% of total amount and received 2% trade discount.

1. Ram 256 MB - @ 4000 – 3 Pcs

2. Processor Intel Org. 1.8 Ghg @ 8000 – 2 Pcs.

3. Keyboard, mouse and prolink Co. @ 150 & 120 respectively 5/5 Pcs.

4. Cashing 5 Pcs. @ 800

5. 600 VA Board @ 8000 – 5 Pcs.

6. CD R/W Samsung 5 Pc @ 4650

7. Hard disk 40 G.B. @ 2500, 5 Pcs.

2005-1-6                                          A computer named IC 1800 sold to Sa.Ba.Ra. Talim Kendra & 42000\- [Configuration 256 MB, 1.8 Intel Processor with CD R/W and 40 GB Hard disk)

2005-1-7                                          CD/RW 1 Pc being defective. Return to the vendor. Transportation charge Rs. 150\-

2005-1-8                                          Cash received from Sa.Ba.Ra. Talim Kendra Rs. 41900 in full statement.

2005-1-9                                          Advance Salary paid to Mishri maya Rs 2000.

Electricity bill received from NEAB Rs 11000.

2005-1-15                                      Telephone and electricity bill paid Rs 5000 and 11200 respectively( Rs 200 fine on electricity)

2005-1-16                                      Repair Charge receivable from Kalika FM Rs 800 for repair of hard disk.

2005-1-17                                      Cash withdrawn by  Ram Rs. 5000 for his personal use.

Rs 750 received from Kalika FM for repair in fulls settlement

Hard disk sold @ Rs 3000

2005-1-30                                      Interest paid to Lumbini Bank.....

                                    

                                      @@  The End @@