Tally Tutorial

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<p>TALLY TUTORIALIntroduction Bill-Wise Details Cost Centers and Cost Categories Multiple Currencies Bank Reconciliation Interest Calculations Order Processing Tracking Numbers Batch-Wise Details Bill of Materials Price List Zero-Value Entries in Vouchers Stock Valuation Methods Inventory Analysis Reports Budgets &amp; Controls Financial Analysis Reports Consolidation of Accounts Export and Import of Data Voucher Classes Security Control Tally Audit Configure Your Company Printing Reports Key Combinations End of Course Note</p> <p>Welcome to Volume-2 of Tally Self-learning Guide and Workbook in which you will learn to use Tally as a complete management information system for your company. You will find Tally gives a variety of information for day to day and periodical business management easily and instantly.In this volume, we will deal in depth the individual features that make Tally so powerful. You will also learn about Tally administration. It is assumed that you have completed Volume-1 and are familiar with creation of accounts and vouchers and know how to display basic reports. As you progress through this volume, you will notice a departure from the detailed hand-holding method of training to a more thought provoking method. You are now proceeding to an advanced level.</p> <p>Course objectivesOn completion of the course, you will be able to:</p> <p>1. Describe the advanced features and components of Tally 2. Use the advanced features of Tally to: Maintain bill and invoice details in addition to normal ledgers and track receivables and payables. Create and maintain cost centers Create and maintain multiple currencies Create and maintain multiple stock godowns and stock points Create and maintain Budgets Perform interest calculations View and print information statements</p> <p>In this unit you will learn how to maintain details of bills, specify credit periods and obtain receivable and payable reports. It would be difficult to match a payment to an invoice where there is a large number of entries. Business usually wish to maintain details of there creditors and debtors at the invoice level and, in Tally, this is called Bill-wise accounting.</p> <p>Activate Bill-wise</p> <p>The Bill-wise facility is turned on via the F11:Features button and setting Maintain Bill-wise Details? to Yes At the Gateway of Tally, press F11: Company Features. Type Yes for Bill-wise details in accounting Features. Retain No for (non-trading A/cs). Accept the screen</p> <p>All the previously created customer and supplier accounts under the groups Sundry Debtors and Sundry Creditors will automatically have Bill-wise details set to Yes. When you enter details of sales and purchase with Bill-wise turned on, Tally invites you to identify the invoice with an appropriate reference number. The reference can then be used to allocate payments to the correct invoice to maintain an accurate account of outstanding.</p> <p>Entering Bill-wise details for a Purchase Voucher-New Reference Create a new supplier account. If it exists, then go to the next step. o Supplier Account-PC Games Ltd (Under Sundry Creditors) Create a new stock item PCGame2000, Stock Group Software, Unit of measure pcs, Std Cost 200 Std Price 300. Accept default for other parameters Select Voucher Entry, F9: Purchase and then Purchase. Select As Voucher. Create the following entries. o Date 11/12/98. Received invoice and goods-Invoice number PCG. Enter this in the reference field below Purchase voucher number. Bought 10pcs PCGame2000 from PC Games Ltd at 220. No other expenses or charges. You already know how to enter up till this stage. When you Credit the PC Games Ltd, you must give the Bill-wise details. Select New Ref. The contents of Reference PCG-is copiedand not the voucher number. Note the difference in behaviour from Sales invoice. Credit period- Give 15. This is 15 days from the effective date of the invoice. Accept the amount as the total amount due. At the Narration, type in your name. Accept the voucher.</p> <p>Notes: New Ref is selected for new financial transactions. Since the raising of an invoice signals a newtransaction that will end on payment, New Ref should be selected. You will selectAgst Ref to set off payment against the previously entered new Ref.</p> <p>Entering Bill-wise details for an invoice-New Reference First, create new customer and a stock item. If they exist, then go to the next step. o Customer- First Independent Computers (Under Sundry Debtors) Select Voucher Entry, F8: Sales and then Sales. Select As Invoice. Create the following entries. o Date 12/12/98. Sold 5 pcs PCGame2000 to First Independent Computers at 250 from On-Site. No other expenses or charges. Allocate to Software Sales Account. After accepting the total amount, you are required to fill the Bill-wise details. Select New Ref. The voucher number is copied as reference. You could give any reference you want. You can keep the invoice number or overwrite it. Overwrite it with First Game. Credit period- Give7. This is 7 days from the effective date of the invoice.</p> <p>Accept the amount as the total amount due. At the Narration, type in your name. Accept the voucher.</p> <p>Bill-wise entry screen:</p> <p>Payment Performance of DebtorsApart from the displays, one other information that is useful for credit control is the Payment performance of Debtors. At this stage, you do not have much data to show the effect of this feature. However, it is relevant to bring up the topic here and you are advised to take a look towards the end of the course when all voucher entries have been done.</p> <p>1. At the Gateway of Tally, select Ratio Analysis. 2. Select Receivable Turnover in days. Note the figure that gives you the amount of sales locked upwith debtors in terms of sales days.</p> <p>3. Press Enter to view two columns of days- Using Receivables Formula and Using Actual Bill 4.Clearance Dates. Receivable formula. The formula is explained on screen itself. Select a customer name and press Enter.</p> <p>This gives you the details of all invoices raised on him and the dates when he paid with the analysis of delays. You have now completed the Outstandings Management System of Tally.</p> <p>By far the most versatile tool for management information, Tally's cost centres allow dimensional analysis of financial information. You will now learn to allocate transactions like expenses and incomes to cost centres with a view to assess their performance.</p> <p>Create Cost CentresYou will now create projects undertaken by a company as cost centres. First of all, activate the Feature Cost Centres in the F11:Company Features. Do NOT activate 'more than one Cost Category' Now return to the main Gateway of Tally. Select Accounts info, Cost Centres, Create under Single Cost Centre</p> <p>1. 2. 3. 4. 5.</p> <p>Type Projects in the Name field and press Enter. Press Enter at Primary and Enter or Y to Accept. Create the next cost centre Buildings. Select Projects in the Under field and Accept. Similarly create two more cost centres Airports and Roads under the cost centre Projects.</p> <p>You have now created four cost centres, three of which are sub-cost centres under a cost centre. Buildings, Airports and Roads are grouped under the cost centre Projects. Tally allows creations of cost centres within cost centres to any depth.</p> <p>Displaying Cost CentresOnce created, cost centres can be displayed by selecting Display for single or multiple cost centres. You can not alter any information.</p> <p>Altering Cost CentresExisting cost centres can be altered by selecting Alter. The procedure is the same as creating a cost centre. Simply type in the changes. You may alter the parent by selecting another cost centre from the list.</p> <p>Deleting Cost CentersYou can delete a cost centre via the Cost Centre Alteration screen by pressing [Alt]+[D]. However, you cannot delete a cost centre that containing another cost centre or has vouchers allocated to it. The lowest level must be deleted first.</p> <p>Applying Cost Centres to Ledger Accounts 1. Now create a few ledger accounts with cost centre active for these accounts. You can decidewhether a ledger account should be allocated to cost centres when creating it.</p> <p>2. Create ledger accounts Conveyance and Postage under Indirect Expenses. Create ConsultingFees under Direct Incomes, Select Yes to Cost Centres are applicable?</p> <p>Cost centre allocation in Voucher EntryThe entire objective of creating cost centres is to allocate expenses and revenues to cost centres. Allocation is dynamic and done at one stage only, i.e., Voucher Entry. Hence,</p> <p>1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.</p> <p>Select Voucher Entry Select Payment Date: 14-12-98 Dr Conveyance 20.00 Now in the Cost Centre Allocation sub-screen that comes up after you keyed in the amount, type B with the intention to allocate the expense to Buildings. Confirm the selection of Buildings and press Enter for the entire amount of 20.00 for Buildings. Since you have completed the allocation of the full amount, the cursor moves back to the main voucher screen. Cr Petty Cash 20.00 Type in the Narration 'Paid to Amar for travel to Brigade Road for the Buildings Project'. Press Enter and accept the voucher. Now Select Receipt Voucher. Cr Consulting Fees 1000.00 Since you had activated Cost Centre Allocation for Consulting Fees, the sub-screen appears. Select Buildings and allocate the full amount to it. In the Narration, type 'Received for work done by Amar on the Buildings project'.</p> <p>Display Cost Centre InformationIn the vouchers, you allocated different transactions to cost centres. It is now time to view the kind of information that they provide.</p> <p>1. Wherever you are, come back to the Gateway of Tally. 2. Select Display, Statements of Accounts then Cost Centres. 3. Select Category Summary to display the net summarised position of the cost centres underProjects.</p> <p>4. Select Buildings and press Enter.You are now drilling down into the Cost Centre 'Ledger' of Buildings. As from everywhere in Tally, you can drill right down to the vouchers. Experiment with the different button options. Now get back to the Display Cost Centres menu.</p> <p>1. Select Cost Centre Break-up. 2. Select Buildings. 3. What do you see? This is the net position of your activity on Buildings. All your purchases andexpenses against your sales and incomes giving you the net transactional profits on Buildings.</p> <p>4. Click on Details button to explode the groups. Alternatively, try [Shift]+[Enter] on a line e.g.Indirect Expenses.</p> <p>5. Now use the keys [alt]+[C] or click on New Column Button to bring up data for Roads alongsideBuildings.</p> <p>6. With your cursor on Indirect Expenses in the Particulars column, drill down to view further details. 7. 8.Are the columns retained? Now escape back to the first double column screen. Bring the cursor to the Indirect Expenses amount for Roads. Press Enter to see more details. What happens? Do you retain the two columns?</p> <p>You have just gone through an amazing feature of Tally. You are now ready to learn about Cost Categories.</p> <p>Cost CategoriesIn the above exercises, by allocating transactions to Buildings and Roads, we have obtained full analysis of these project cost centres. While entering the vouchers, we held 'Amar' responsible for some of the expenses and incomes and 'Barry' for some. The purpose of mentioning their names in the Narration was to be able to record their performance for later analysis and possible bonus payments. Now to extract the information and to know what projects Amar was involved with and the same for Barry. one can use Tally's excellent filtering utility [Alt]+F12:Range button and filter in information giving suitable conditions. Try it out now. Use the category summary and filter information by using vouchers having Narrations containing 'Amar'.</p> <p>1. Display Statements of Accounts -&gt; Cost Centres -&gt; Category Summary 2. Select Buildings. Drill down to the Cost Centre Vouchers for December. 3. Now click on F12: Range. Give the filter condition.It is possible to filter out all information and obtain the report but what if you have not given the information consistently in the vouchers? Use Tally's Cost Category feature to allocate the transaction to Projects as well as to other 'Categories' like 'Salesman' or Branches or Departments and so on.</p> <p>1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.</p> <p>Get back to the Gateway of Tally from wherever you are. Activate the 'more than ONE Cost Category' option in F11:Features. Accept the screen. Try [Ctrl]+[A] keys to accept without having to press Enter at each option. Get back to the Gateway of Tally and into Accounts info, Cost Categories, Single Create. Create a Category 'Salesmen' under Primary Cost Category. Allocate Revenue Items only and not Non-revenue items. Now return to the Accounts info menu and select Cost Centres Now the first information that you need to give is which Cost Category do you want the new cost centre to belong. Select Salesman for the Category Type in Amar for the cost centre. Accept Primary for 'Under' (Parent). You can have another cost centre under the same category is its parent. Likewise create Barry as a cost centre.</p> <p>The cost centres Amar and Barry have been created under the Cost Category Salesmen. The Cost Centre Projects and its sub cost centres Buildings, Roads and Airports were not given any category and hence automatically fall under Primary Cost Category. Primary Cost Category is Tally's default category, which you have come across already during Display.</p> <p>You will now create a new Cost Category by the name Projects and Assignments and move the cost centre Projects under this new Category. create a new Cost Category by the name Projects and Assignments and move the cost centre Projects under this new Category.</p> <p>Hint: Use Alter Cost Centres to move. Do you have to alter the individual cost centres under Projectsto move the Category? if so do it now. Now you will create a voucher to learn how to allocate amounts to cost centres belonging to different cost categories.</p> <p>1. 2. 3. 4. 5.</p> <p>6.</p> <p>7. 8. 9. 10. 11. 12. 13.</p> <p>Select Voucher Entry Select Payment Date 17-12-98 Dr Conveyance 50.00 Now the Cost Centre Allocation sub-screen that comes up as before after you keyed in the amount, but first You must select the Category. Type P with the intention to select Projects &amp; Assignments. Allocate the expense to Buildings. Confirm the selection of Buildings and put in amount of 30.00 for Buildings. You can allocate the amount partly to Buildings and partly to other Cost Centres in the same cost category. At this moment, what Cost centres are permitted? Only those that belong to the same category. Note that you must allocate the whole amount of 50.00 before moving on to another cost category or to return to the main screen. Allocate 20.00 to Roads. Your cursor moves to the Cost Category line. Here if you press Enter when it is blank (or select end of list) you go back to the main voucher entry scre...</p>