Introduction

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.

The information can be fed as well retrieved at

random and all human errors can be corrected.

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Covers a wide are - can be used by the owner,
financial controller, accountant, manager or an
auditor.

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
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

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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 foreign
customers in their as well receive payments in their
currency. If there is any forex gain/loss, then it reflects

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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.

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10. MAINTAIN BUDGET AND CONTROLS
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 0F 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.

15. 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.

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16. 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.

17. REPORTING ON DAY TO DAY BASIS

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

18. 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.

19. 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.

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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
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.

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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
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

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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

Group During manual accounting the accounts

(ledger) are grouped upon preparation of Trial
Balance to prepare Profit & Loss account and
Balance Sheet which reflect the final accounts of
the company. In tally the concept remains
analogous. Following screen will appears when
you select Group option

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 1. SINGLE GROUP
CREATION

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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

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“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.
The sub group will automatically adopt the
features of their parent group including those
specified in advanced mode. if there is any
changes for an individual group to have to select
single group option.

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 LEDGER CREATION
Tally provides two types of Ledger creation either
Single Ledger and 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

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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

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a) USE COMMON NARRATION
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

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 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

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

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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.

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:

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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

c) NONE
If we have selected the None option then
voucher number would not appear on screen.
d) AUTOMATIC
If we have selected the automatic option then
Voucher number is automatically generated by

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

e) MANUAL
If we selected the manual option, cursor would
blink at the voucher number field and we can
input this number through keyboard.

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

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 Ledger and came back to Voucher entry screen
and continue your entries.

i) PARTICULAR
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.

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 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.

2. CONTRA VOUCHER
It is used in fund transfer transaction where
net inflow and outflow are equal. In other

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 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

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 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 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

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 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
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>.

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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.

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

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 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.

5.CODES NOT MANDATORY

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 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.

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 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
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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