TALLY

Tally is a financial accounting and inventory valuation system. It is versatile and

massive software package, being used by various types of trades and industry. It is
accounting without books, so you do your a/c without any Accounting book. It is a
comprehensive accounting. It maintains complete range of books of accounting Final
Accounts, P&L a/c cash and fund flow, Trial balance and others. The Receivables and
Payables provide multiple reports in divert formats. Internet calculations, multiplication
standard control, unlimited cost of profit centers’, unlimited cost and periods of
accounts can be done. So we can say that TALLY is a perfect business solution. The
tally 5.4 version also provides facility of inventory management. To take advantage of
full potential of tally, the user has to understand its feature their implication and how to
implication and how to implement them into business scenario.

FEATURES
1. SIMPLICITY
Tally is one of the simple and complete business solutions available in the
world. Anybody who has a basic knowledge of accounts or an average
knowledge of English can use Tally. It is easy to learn, configure and use
Tally. Tally is not a computerized accounting package but is Accounts on
computers.

2. SPEED
A Tally user can get any reports instantaneously for any date/ period and can
toggle between reports, either accounting or inventory or even from one
company to another company instantaneously. The user can also shift across
dates in any report without any time loss.

3. POWER

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Tally has the power to generate management information, which would help
the management in taking correct and quick decisions. This in turn enables
faster growth of business. The power of online information made available
by Tally helps one in keeping his business under complete control.

4. FLEXIBILITY
Tally is very flexible to use. Tally can adapt to any business needs rather
than the user trying to change the way his business is run to adapt to the
package.

5. NO CODES
Tally was the first accounting package in the world to introduce the No
Codes concepts for Accounts. Tally accepts alphanumeric characters for
accounts and inventory masters and hence any accounts or stock items can
be created and identified by their names. The codeless concept introduced by
tally is now the widely accepted norm across the world today. In case the
user wants to use codes, tally supports that too.

6. REAL TIME
Tally updates all reports (from day book to Balance sheets) as and when the
transaction are entered and hence does not need any back end or day/period
end process to be done.

Tally provide a great help in managing financial management either it is for

single company or for multiple company as well as branch company or for
personal account management. The T ally user can also handle companies
concurrently i.e. the user can load more than one company and
simultaneously work on all or any of the companies loaded by shuffling
between companies as and when required. Tally also allows users to group
companies and hence provides a consolidated report for the companies
grouped. Tally maintains books of accounts in base currency. Tally also
allows users to enter transactions in multiple currencies. Tally also allows
users to enter transactions in multiple currencies and view reports in any of
the currencies that have been created in Tally. The user can thus invoice his

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foreign customers in their as well receive payments in their currency. If there
is any forex gain/loss, then it reflects the same immediately in the
concerned parties ledger account. The gain or loss hence derived can be
transferred to a forex account by using a journal (use voucher class). The
user can also view and a print ledger account in the currency the transaction
has been entered. Tally also allows the user to view & print all reports in any
currencies.

Advancements made by tally developer day by day makes tally one of the
more powerful accounting management tools. There are some features
which show the technology advancement of the tally technology.

7. DATA RELIABILITY
Tally offers extremely high reliability data. Tally uses a flexi-field, flexi-
length, self indexed weighted file structure for an extremely compact and
fast database. Tally is robust and will not be affected even if there is a power
failure or if the machine is shut down while the system is still functioning
and hence there will be no data loss. Tally uses signaling quality data
integrity checks at regular levels to ensure complete reliability of data.

8. DATA SECURITY
Tally use of data integrity checks ensures that no external change to the data
can pass through Tally. It also uses a binary encoding format needs evolve,
Tally Enterprise evolves with them bringing about improvements to the
cross-functional co-ordination, which helps in improving organizational
effectiveness.

9. ALLOW MULTI CURRENCY ACCOUNTING

You can sale purchase orders. This option enables us to use multicurrency
system. Click the option to yes to use it.

10. MAINTAIN BUDGET AND CONTROLS

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Unlimited budgets records can be maintained. The option allows you to
create multiple budgets. There could be a budget for specific purposes i.e.
budget for branch, realistic budget etc.

11. ALLOWED 0 VALUED ENTERIES IN VOUCHERS

This option is self explanatory. It allows you to prohibit the entry of zero
valued vouchers, as most of the time they are meaningless.

12. MAINTAIN BILLWISE DETAILS

This option allows you to keep track of an account, on bill to bill basis. If
you do not need bill wise details, Let this option be set to its default value
no. in this case you will only get net closing balances of accounts without
any bill wise details.

13. MAINTAIN COST CENTERS'

This option permits you to allocate transactions of certain accounts to cost
centers' to determine unit wise performance. It is use for taking decisions.

14. VOUCHER TYPES

A voucher is the main document record business truncations. Tally provides
it pre- defined types of vouchers to record various transactions. Tally gives a
scope to the user to define different types of vouchers according to his
requirement.

16. DRILL DOWN DISPLAY

It is possible to drill down to grass root level in Tally. One can view any
group, ledger or voucher at a particular point of time.

17. CHRONOLOGICAL REPORTING

Tally produces all records on the basis of the data of transactions and not on
the basis of data of actual entry. This enables the books of accounts to
represent accounts information.

18. REPORTING ON DAY TO DAY BASIS

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Tally provides cash books, bank books and other ledger on daily basis. The
user can have information on average daily cash and bank balances.

19. REPORTING ON PERCENTAGE BASIS

Tally provides the facility of presenting all financial statements on a
percentage basis. This option to show % ages can be activated by pressing
f12.

20. FUND FLOW AND CASH FLOW

Tally readily provides fund flow statement by consolidating the information
required for it and saves the botheration of user. Tally also takes the
movement in cash inflow and outflow by preparing cash flow statement.

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TALLY ENTERPRISE

Tally uses a unique dynamic architecture that gives you a powerful, flexible
and amazingly simple solution. It can be rapidly implemented to your unique
business processes. So as your business needs evolve, tally enterprise
evolves with them bringing about improvements to the cross functional co-
ordination which helps in improving organizational effectiveness.

BENEFITS OF TALLY ENTERPRISE

1. It is extremely cost efficient.

2. Can be customized to user’s unique reports.

3. Easily adaptable, by both large and small business.

4. Easy to use.

5. Deployable with ease and speed.

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 ACCOUNT INFORMATION
Account information menu contains all submenus related to account. Tally
by default activates minimum option (Account Groups, Account Ledgers,
and Voucher types) that are required by every user. These options are
described below:

1. GROUP
The account group provides us the ability to classify and organize your
account and this mechanism is known as classification of account. Group
option is divided into two main sub-groups that is single group and multiple
groups. Both groups have option to create group, display group and alter
group. With the help of these options we can create new group either single
group or multiple group, can display groups and also if we need to make any
changes we can alter group information.

2. LEDGERS
This is the most commonly used option to view transaction including
balances for ledger , for any ledger. General ledger account controls. As in
group, it also has two options single ledger and multiple ledgers. Both ,
Single Ledger and Multiple Ledger have three sub-menus Create ledger,
Display ledger , Alter ledger (for any changes ).

3. ADVANCE OPTIONS

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If user wants to activate cost center , cost categories, Budgets and currencies
then press <F11> or click on <F11Feature> on the Right Hand Side of the
Tally Screen. After doing this, you will get Company Operations Alterations
screen which has many options related to Accounting and Inventory which
you can activate and deactivate by using Yes/ No options.

a) COST CATEGORIES

As we know that we can allocate transactions to a cost center individually

but with Cost Category we can allocate same transactions to multiple cost
centers. In other world we can say that we can put more than one cost center
transaction within a single cost category. Cost category is also of two types,
Single cost category and multiple cost categories.

b) COST CENTER

Tally provides us facility to any individual component. Here the meaning of

component is either any project or any process. We can understand it with
following it with following example. Consider an ABC company that
develops software, web site and is involved in data processing job. There are
different departments in company. With the help of Cost Center we can get
actual costs involved in each department. Cost Center Menu has two
options, Single cost center and multiple cost centers.

c) BUDGETS

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One of the most important features of Tally is its Budget option. With the
help of this option we can maintain Budget for any company. If this option
is activated then we can create budgets.

d) CURRENCIES

Currency is the feature which allows us to manage our business in multi

currency scenario which is useful for imports and exports business. Tally
provides an option for setting Exchange Rates for different currevetica, sans-
serif’’ size=’’2’’>currency scenario which allow us to manage our business
in multi currency scenario which is useful for imports and exports business.
Tally provides an option for Exchange Rates for different currencies. Tally
automatically computes gains and loss for Exchange Rates.

4. VOUCHER TYPE
A voucher is documentation of the detail transactions. In other words we can
say that it is a journal that contains the information about all transactions.
For every transaction we have to enter a voucher in Tally. The voucher entry
option is available in [Gateway of Tally] Menu.

5. QUIT
The last option of this section is quit, to return to Gateway of Tally.

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 GROUP CREATION
We have two options for group creation, single group and multiple groups.
Now we have to see that how these groups are created:

1. SINGLE GROUP CREATION

In single group creation account group is created one by one.

In group creation there is a option of Alias. Alias is a nickname of the master

group. So these groups are also recognized by their alias name. Generally
Alias are kept in abbreviate form of group name. The advantage of using
Alias is that when we have to use group name, we need not to enter full
name of group, we can perform all work with Alias name.

There is another option in single group creation “Groups behave like a Sub-
Ledger”. Normally in Tally there is no concept of Sub-Ledger but if we want
to make it possible we have to set query as “YES”. This enable us to get a
clear view of Group balance instead of Ledger wise balance.

2. MULTI GROUP CREATION

With the help of multi group creation option we can create more than one
sub-group under any existing or primary group.

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 LEDGER CREATION
Tally provides two types of Ledger creation either Single Ledger or Multiple
Ledger.

SINGLE LEDGER CREATION

In single ledger creation account ledger is created one by one.

MULTI LEDGER CREATION

With the help of multi ledger option we can create more than one ledger
under any existing group or primary group at a time. It will take serial no. of
each entry automatically.

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 VOUCHER TYPE CREATION
As we already know that Tally provides Eighteen Pre-Defined Voucher
types but if we want to create user defined voucher type then we have to
follow the following procedure.

1. Press <Enter> key or click on Accounts Info option available in

Gateway of Tally Menu.

2. Press <Enter> key or click on voucher Types option available in

Accounts Info Menu.

3. Press <Enter> key or Click on Create Option available in voucher

Types Menu.

After following the above steps, we will get a Voucher Type Creation
Screen in which we have to feed the following information like:

Name of the voucher, Type of Voucher

(either pre-defined or user frequently), Method of Voucher Numbering
(Automatic, Manual, None ( select any one)). Except these there are
some advance entries also which are given below:

a) USE COMMON NARRATION

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In a particular voucher we make different type of entries. If we want to
present common description about these entries we have to set this option
as YES otherwise NO.

b) NARRATION WITH EACH ENTRY

If we do not want to give common narration, then there is another option

to give explicitly narration to each entry. This can be done as option
YES, otherwise NO.

c) PRINT AFTER SAVING VOUCHER

If we want to print every voucher after entering it, set this option as YES.

d) USE EFFECTIVE DATES FOR VOUCHER

Make this option as YES if you want to enter effective dates for this
voucher.

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 COST CENTER CREATION
As we have discussed that cost center are of two types single cost center
and multiple cost center. Now we have to see that how these cost centers
are created.

SINGLE COST CENTER CREATION

In single cost center creation , cost center is created one by one.

In cost center creation there is an option of Alias. Alias is a nickname of

the cost center. So these groups are also recognized by their alias name.
Generally Alias are kept in abbreviate from of cost center name.

MULTI COST CENTER CREATION

With the help of this option we can create more than one cost center
simultaneously under any existing cost center.

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 DISPLAY
This option appears in gateway of tally menu. It provides facility to display
information of all accounting records:

a) TRAIL BALANCE

When we double click on this option or press <enter key> on this option,
then entire report related to the trial balance of the company is displayed
on the screen.

b) ACCOUNT BOOKS

When we double click on this option or press <enter key> on this option
then an account books menu is displayed which contains various
submenus like cash/bank book, ledger, group summary, sales register,
purchase register, journal register. When we double click on a particular
submenu or press <Enter> key on particular submenu then report related
to that submenu is displayed on the screen. All these reports can be
shown in different format such as monthly, weekly, yearly, or daily.

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c) STATEMENT OF ACCOUNT

When we double click on option or press<Enter> on this option then an

Accounts Statement Menu is displayed which contains various submenus
like cost centers, outstanding ( Receivables, Payables, Ledger, Groups)
and statistics. When we double click on a particular submenu or press
<Enter> on particular submenu then information related to that submenu
is displayed on the screen.

d) INVENTORY BOOKS

When we double click or press <Enter> on this option then an Inventory

Books Menu is displayed which contains various submenus like Stock
items, Group Summary, Movement Analysis, Stock Transfers, Physical
Stock Transfers. When we double click on a particular submenu or press
<Enter> key on particular submenu then information related to that
submenu is displayed on the screen.

e) STATEMENTS OF INVENTORY

When we double click or press <Enter Key> on this option then an

Inventory Statements Menu is displayed which contains various
submenus like Godowns, Categories, Stock Query, Purchase Bills
Pending, Sale Bills Pending, Statistics. When we double click on a
particular submenu or press <Enter> key on particular submenu then
information related to that submenu is displayed on the screen.

f) CASH/FUND FLOW

When we double click or press <enter key> on this option then a

cash/fund flow menu is displayed which contains submenus for cash flow
and fund flow. When we double click on a particular submenu then
information related to that submenu is displayed on the screen.

g) DAY BOOK

This will display day-by-day report.

h) LIST OF ACCOUNTS

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This will display list of Ledgers.

VOUCHER ENTRY
Vouchers creation (Voucher Entry) is the most important thing in Tally.
Voucher Entry plays a very important role in managing accounts. We
maintain Daily transactions of our business in Tally only through
Voucher Entry. During ,Voucher Entry we have to follow few simple
steps which are described below:

a) VOUCHER TYPE

In top left corner of the screen there is a list of different types of

vouchers. Just by clicking on any one of them we select the particular
voucher type which we need to create.

b) VOUCHER NUMBER

Every voucher of account has unique Voucher Number for identification.

This voucher number can be automatically generated by the Tally,
according to option set in voucher type under Account info. There are
three options in tally to generate voucher number.

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c) AUTOMATIC

If we have selected the automatic option then Voucher number is

automatically generated by the Tally by incrementing the previously
generated number. Cursor does not move on automatically generated
number and thus, we cannot change this voucher number.

d) MANUAL

If we selected the manual option, cursor would blink at the voucher

number field and we can input this number through keyboard.

e) NONE

If we have selected the None option then voucher number would not
appear on screen.

f) REFERENCE

This field does not appear in all type of vouchers. In Sales Voucher,
Purchase Voucher, Debit Note Voucher and Credit Note Voucher you
will get this field just below the Voucher Type. As ,it is a free field so we
can use it according to our convenience, like se can write bill number of
sales or purchase order in Reference field.

g) VOUCHER DATE

If we want to change the date of voucher entry then this option is

available in the right side of the voucher creation screen, we can press
<f2> or just click on it change the easily.

h) VOUCHER ENTRY

For Voucher Entry, first you have to create all ledgers (a/c). Suppose if
you forgot to create any ledger and you need it at the time of Voucher
entry then simply go to particular option and press <Alt+c>. It will show
you Ledger creation screen, from where you can create new Ledger and
came back to Voucher entry screen and continue your entries.

i) PARTICULAR

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This option shows the Ledger name (which you created in Ledger
creation). Particulars can be of debit type or credit type. Display of To or
Cr shows that it is Ledger to credit. Display of By or Dr shows that it is
ledger to debit.

j) DEBIT/CREDIT

The amount of transaction is shown either in Debit Column or Credit

Column. If we debit a Ledger, then amount goes into the Debit column ,
if we credit a Ledger, then amount goes into the credit column. At the
bottom, total of debit and credit amount appears.

k) NARRATION

Tally provides facility to give description of all transactions. In last there

is an option to provide Narration for whole voucher.

TYPES OF VOUCHERS
In older time when accounting was done manually the vouchers were
broadly divided in two categories:

1. Cash book

2. Journals

But in modern accounting Tally provides following predefined types

of vouchers to maintain accounting transactions that are describe one
by one below:

1. PAYMENT VOUCHER

All transaction related to paying cash or bank is recorded in payment

voucher. All these payments can be of any type such as cash punches,
expenses. In payment Voucher the first entry must be Debit and
second entry onwards either in Debit or in Credit.

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 2. CONTRA VOUCHER

It is used in fund transfer transaction where net inflow and outflow are
equal. In other words we can say that net effect is zero. In contra
Voucher we can do transaction between cash and bank account only.

3. SALES VOUCHER

All transactions which are taken place due to sales either of goods or of
services is entered in sales. In other words we can say that sales Vouchers
are used to maintain report related to the sales of goods and services. When
you do not want to make entry through invoice use sales voucher ,if we sales
goods or services in credit then Creditors a/c is debit and sales a/c is credit.

4. PURCHASE VOUCHER

This is similar to the sales voucher but basic difference is that it maintains
purchase transaction of the services and goods. Here the credit become the
account of seller while debit the purchase account. In purchase voucher the
first entry must be credit involving any creditor.

5. JOURNAL

Whenever we need to make adjustment between different Ledger accounts

we use the Journal Voucher, due to this sometimes it is called Adjustment
Boucher. The common example of Journal Vouchers is Income Receivables,
Provision of Liabilities etc. This is used for non- cash transaction. Consider
the condition that you want to make adjustment between to or more Ledger
accounts here simply pass the journal voucher without affecting cash or bank
account.

6. MEMOS

Except all these predefined Vouchers there is facility in tally to create user-
defined Vouchers which is completely depends upon the user needs. User
can create different vouchers according to his/her requirement.

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START WORKING WITH
TALLY

COMPANY CREATION

For company creation, Press <Alt+F3> or click on create company

button on the right hand side. You Find will Company Info Menu.
Double Click on create company option or navigate with down arrow

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key and press <Enter> on Create Company option you will get a
company creation screen in which you have to feed the information
about new company, Like Name of the company, Mailing Address,
Currency which you are going to use Income tax no, Sales tax No, etc.

LEDGER CREATION
If you are using tally for the first time then you must create following
ledger, some examples of ledger and the concerned group in which
they fall are given below:

S.NO LEDGER NAME UNDER(GROUP)

1. Abs capital a/c Capital a/c
2. Sales a/c Sales a/c
3. Purchase a/c Purchase a/c
4. Salary a/c Indirect Expenses
5. Rent a/c Indirect Expenses
6. Telephone bills a/c Indirect Expenses
7. Staff welfare a/c Indirect Expenses
8. Office expenses a/c Indirect Expenses
9. Factory expenses a/c Direct Expenses
10. Computer a/c Fixed assets
11. Furnishers a/c Fixed assets
12. Aaa co.ltd a/c Sundry debtors
13. Bbb co.ltd a/c Sundry debtors

INVENTORY INFORMATION

It is necessary for user to analyze Company’s Inventory information if

he had selected Account with Inventory option at the time of company

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creation. In inventory Info option he has manage and what type of
items he has to enter in a particular group.

VOUCHER ENTRY

Voucher entries will be done on the basis of different type of

vouchers. Like for contra voucher Press <F4>, For Payment Voucher
Press <F5>, For Receipt Press <F6>, For Journals Press <F7>, For
sales Press <F8>, For Purchase Press <F9> and For Memos Press
<F10>.

DISPLAY

To get a view of all the information related to trial balance, Account

books, Inventory Books, day book and others use display option
available in gateway of tally menu.

MULTI-ACCOUNT-PRINTING

To take the printout of all these views use Multi-account-printing

option available in gateway of tally menu.

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 ADVANTAGES OF TALLY

Tally is concerned to be the best accounting package because of its

merits. Many of the features discussed above are in fact merits of
tally. The following points further account for populating of tally.

1. EASY TO UNDERSTAND

There is no need for any technical training in tally. Anybody having

knowledge of accounting and English can make use of tally.

2. SPEED

With the help of tally any type of report for any period can be made
available in few seconds. Manual accounting can in no way be
watched with tally.

3. FLEXIBILITY

Tally is quite flexible and changes can be made in the system as per
the requirements of the users.

4. SAVING OF TIME AND EFFORT

There is no wastage of time and efforts. Tally helps in saving time and
efforts which could be used elsewhere to manage business in a better
way.

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5. CODES NOT MANDATORY

Tally does not require any codes to be followed in the system.

Accounts and stock items can be entered by their names as such. Tally
was the first package in the world to introduce the no codes concept
tally supports.

6. USER FRIENDLY

Tally is user friendly and provides online help the user can make use
of tally just by regarding what appears on the computer screen.

7. QUICK AND PROMPT DECISIONS

Tally enables the management to make prompt and better decisions.

Management does not have to wait for reports, they are readily
available in the manner required by the management.

8. CONTROL

Business can be controlled in a better way through tally. Everything is

systematic and there is no space for any irregularities. Internal check
is automatically exercised by tally.

9. RELIABILITY OF DATA

The data provided by tally is extremely reliable the data will not be
affected even if there is power failure or the computer is shut down
which the system is functioning and hence there will be no data loss.

10.SECURITY

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Tally provides great security the user can have individual passwords
and define multiple levels of security as per his needs.

11.EASY INSTALLATION

Tally has simple and rapid installation. It has a simple menu driven
installation procedure. Its does not take more than one minute to
install tally on the local hard disk.

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