TALLY TUTORIALIntroductionBill-Wise DetailsCost Centers and Cost CategoriesMultiple CurrenciesBank ReconciliationInterest CalculationsOrder ProcessingTracking NumbersBatch-Wise DetailsBill of MaterialsPrice ListZero-Value Entries in VouchersStock Valuation MethodsInventory Analysis ReportsBudgets & ControlsFinancial Analysis ReportsConsolidation of AccountsExport and Import of DataVoucher ClassesSecurity ControlTally AuditConfigure Your CompanyPrinting ReportsKey CombinationsEnd of Course Note

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.

Course objectives

On completion of the course, you will be able to:

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

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.

Activate Bill-wise

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

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.

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.

Notes: New Ref is selected for new financial transactions. Since the raising of an invoice signals a new transaction that will end on payment, New Ref should be selected. You will selectAgst Ref to set off payment against the previously entered new Ref.

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.

Accept the amount as the total amount due. At the Narration, type in your name. Accept the voucher.

Bill-wise entry screen:

Payment Performance of Debtors

Apart 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.

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 up

with debtors in terms of sales days. 3. Press Enter to view two columns of days- Using Receivables Formula and Using Actual Bill

Clearance Dates. Receivable formula. The formula is explained on screen itself. 4. Select a customer name and press Enter.

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.

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.

Create Cost Centres

You 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

1. Type Projects in the Name field and press Enter. 2. Press Enter at Primary and Enter or Y to Accept. 3. Create the next cost centre Buildings. 4. Select Projects in the Under field and Accept. 5. Similarly create two more cost centres Airports and Roads under the cost centre Projects.

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.

Displaying Cost Centres

Once created, cost centres can be displayed by selecting Display for single or multiple cost centres. You can not alter any information.

Altering Cost Centres

Existing 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.

Deleting Cost Centers

You 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.

Applying Cost Centres to Ledger Accounts

1. Now create a few ledger accounts with cost centre active for these accounts. You can decide whether a ledger account should be allocated to cost centres when creating it.

2. Create ledger accounts Conveyance and Postage under Indirect Expenses. Create Consulting Fees under Direct Incomes, Select Yes to Cost Centres are applicable?

Cost centre allocation in Voucher Entry

The 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,

1. Select Voucher Entry 2. Select Payment 3. Date: 14-12-98 4. Dr Conveyance 20.00 5. 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.

6. Since you have completed the allocation of the full amount, the cursor moves back to the main voucher screen.

7. Cr Petty Cash 20.00 8. Type in the Narration 'Paid to Amar for travel to Brigade Road for the Buildings Project'. 9. Press Enter and accept the

voucher.                                                                                                                       Now Select Receipt Voucher.

10. Cr Consulting Fees 1000.00 11. Since you had activated Cost Centre Allocation for Consulting Fees, the sub-screen appears. 12. Select Buildings and allocate the full amount to it. 13. In the Narration, type 'Received for work done by Amar on the Buildings project'.

Display Cost Centre Information

In the vouchers, you allocated different transactions to cost centres. It is now time to view the kind of information that they provide.

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 under

Projects. 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.

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 and

expenses against your sales and incomes giving you the net transactional profits on Buildings. 4. Click on Details button to explode the groups. Alternatively, try [Shift]+[Enter] on a line e.g.

Indirect Expenses.

5. Now use the keys [alt]+[C] or click on New Column Button to bring up data for Roads alongside Buildings.

6. With your cursor on Indirect Expenses in the Particulars column, drill down to view further details. Are the columns retained?

7. Now escape back to the first double column screen. Bring the cursor to the Indirect Expenses amount for Roads.

8. Press Enter to see more details. What happens? Do you retain the two columns?

You have just gone through an amazing feature of Tally. You are now ready to learn about Cost Categories.

Cost Categories

In 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'.

1. Display Statements of Accounts -> Cost Centres -> 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.

1. Get back to the Gateway of Tally from wherever you are. 2. Activate the 'more than ONE Cost Category' option in F11:Features. 3. Accept the screen. Try [Ctrl]+[A] keys to accept without having to press Enter at each option. 4. Get back to the Gateway of Tally and into Accounts info, Cost Categories, Single Create. 5. Create a Category 'Salesmen' under Primary Cost Category. 6. Allocate Revenue Items only and not Non-revenue items. 7. Now return to the Accounts info menu and select Cost Centres 8. Now the first information that you need to give is which Cost Category do you want the new cost

centre to belong. 9. Select Salesman for the Category 10. Type in Amar for the cost centre. 11. Accept Primary for 'Under' (Parent). You can have another cost centre under the same category

is its parent. 12. Likewise create Barry as a cost centre.

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.

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.

Hint: Use Alter Cost Centres to move. Do you have to alter the individual cost centres under Projects to 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.

1. Select Voucher Entry2. Select Payment 3. Date 17-12-98 4. Dr Conveyance 50.005. 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 & Assignments. Allocate the expense to Buildings. Confirm the selection of Buildings and put in amount of 30.00 for Buildings.

6. 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.

7. 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 screen. This means that though you are forced to allocate to cost centres, you need not select more than one cost category or cost centre.

8. But do not go back just yet. Select Salesmen (Cost Category). 9. Select Amar and put in 50.00, Accept. 10. Since you have completion the allocation of the full amount, and to all possible cost categories,

the cursor moves back automatically to the main voucher screen. 11. Cr Cash 50.00 12. Press Enter and accept the voucher. 13. Press Pg Up to view the voucher.

Tally's multi-currency feature is very powerful and able to easily handle all facets of multi-currency transactions.

Your books are maintained in Base Currency - the currency specified for the company on its creation. This is necessary so that all amounts show an identical currency - to easily analyse them. Hence, even when you transact in a currency other that the Base, the information that will be displayed by Tally in the first instance will be converted figures to the Base currency. You cannot possibly add Rupees with Pounds, can you? Just like you cannot add pieces with kilograms. You must convert one to the other using a rate of exchange.

Activate the feature 'Allow Multi-Currency' in F11:Company Features.

1. Return to the Gateway of Tally. 2. Select Accounts Info, Currencies, Create. 3. For each prompt give the information as follows: 4. Symbol: $. 5. Formal name: US Dollars. 6. Number of Decimal Places: 2 7. Show Amounts in Millions: No. 8. Is symbol suffixed to Amounts: No 9. Put Space: Yes

Similarly, create £ with formal name Pounds Sterling.

Alter currencies

1. Reverse into the Currencies menu.2. Select Alter.3. Select $.4. The alteration screen is different! It contains much more information. 5. You can, of course, change information here but you can also input dates and the relevant

exchange rate of the currency.6. Note three columns for the Rate of Exchange - Standard, Selling and Buying.7. Bring your cursor to the Date field in the Standard column.8. Enter the following rates for 1-12-98. Enter the date in the date field.

Standard Selling BuyingRs.35/$ Rs.36/$ Rs.37/$

9. Accept the screen. 10. Standard is the standard or the current rate of exchange. Specified Selling rate is the rate at

which your bank will buy Dollars from you. Buying rate is the rate at which you will buy dollars from the Bank. You use Selling rate when invoicing or receiving money and Buying rate Purchasing or paying money in foreign currency.

11. If the rates are filled here, then during voucher entry they are picked up automatically. We will see it in a moment.

Delete currencies

Use the key combination [ALT]+[D] in the alteration screen to delete. As usual, you cannot delete a currency if it has been used.

Create Foreign Currency Bank Account

1. Return to Accounts Info under Gateway of Tally.2. Select Ledgers, Create.3. Name : Dollar Account.4. Under: Bank Accounts.5. Currency: $6. Accept the rest of the screen.7. Create two ledger accounts, Foreign Customer (Sundry Debtors) and Foreign Supplier (Sundry

Creditors).8. Currency of the account will be the base currency. All accounts should be in base currency

except the Bank as above. Bill-wise - Yes.

Tally Walk-through for Voucher Entry using foreign currency

Foreign currency in stock items and bill-wise details

1. Select Voucher Entry from the Gateway of Tally.2. Select Sales3. Your objective is to raise a sales invoice in $.4. Date 15/12/985. Select As invoice.6. Party's name - Foreign Customer7. Accept the name, address as defaults8. Item name - Wheat (if it is not present, create it using [alt]+[C], Stock Group Foodstuffs, Stock

Category - Cereals, Unit - Bags)9. Tracking numbers and order number if they appear - Not Applicable10. Godown - Warehouse11. Qty - 100 Bags12. Rate - $25 per Bag. Do not forget the $ symbol.13. Rate of Exchange - accept the default selling rate which is Rs.36/$14. Accept the rest of the inventory allocation screen.15. Accounting Allocation - Export Sales (If it is not present, create it using [alt]+[C]. Inventory values

- Yes)16. Cost Centre Allocation - Amar17. There are no other entries for this voucher except Billwise allocation.18. Billwise - New Ref Export/17 days $2500. This must be in the foreign currency.19. Accept the screen.

Display foreign exchange gain/loss

Let's see the impact of the above entry.

1. Return to Gateway of Tally.2. Display Balance Sheet.3. Do you see a line 'Unadjusted Forex Gain/Loss' for the amount of 2500.00? 4. Press Enter and drill down to the 'Gain/Loss due to Exchange Variation' Screen.

5. This screen gives you the billwise information of the reference Export/1. The Pending amount is US$2500. But why is there a Gain/Loss?

The Gain/Loss is calculated because the transacted rate is Rs.36/$ whereas the current standard rate is Rs.35/$. The difference between the transaction rate and the current standard rate is Re.1/$ amount to Rs.2500.00.

Adjusting a forex bill

1. Foreign Customer pays you $2000 and then you deposit the sum in your Dollar Account. Bank charges $50.

2. Go to Voucher Entry.3. Select Receipt4. Date: 20/12/985. Cr Foreign Customer $2000.6. Rate of exchange has moved since then. It is now Rs.39/$7. BillWise - Agst Ref. Export/1 $2000.8. Dr Dollar Account $ 1950 Rate of Exchange Rs.39/$9. Dr Bank Charges $50. Same rate of exchange.10. Now display foreign exchange gain/loss again as you had done before.

What do you find?

The Unadjusted Gain/Loss is 2300. Drill down. You now have gain loss for Sundry Debtors as well as for Bank Accounts.

Let us examine the Sundry Debtors situation.

The amount of Gain/Loss has increased from Rs. 2500 to Rs. 5500. Why?

Invoice amount $2500 @ Rs.36/$Received  $2000 @ Rs.39/$Gain on receipt amount $2000 @ Rs.3/$ = Rs. 6000

However, the balance $500 will have a loss of Rs. 1/$ the difference between the standard rate and the invoice transaction rate.

Hence, the net gain of Rs. 5,500. Wonderful, isn't it?

Bank Balance Forex Gain/Loss

Now lets see the Bank Accounts Forex Gain/Loss.

1. Go to the Balance Sheet.2. Simply drill down from the Unadjusted Forex Gain/Loss, Current Assets, Bank Accounts, Dollar

Account.3. The difference is because the worth of the Dollars in the Account in terms of Rupees has

reduced. That is to say, it was received @ Rs. 39/$ but now the current standard rate is Rs. 35/$. Hence, the account $1950 @ Rs. 4/$ = Rs. 7800.  

Adjust forex gain or loss

The forex gain or loss incurred on the transactions and the balances are left unadjusted by Tally as the amounts change with daily change in standard rates of exchange. At the end of the accounting period. You must journalise this unadjusted gain/loss so that it is written to the Profit & Loss Account.

Tally Walk through to adjust forex gain or loss

First you must know what the exchange gain/loss is. Therefore,

Display Balance Sheet Drill down into the Unadjusted Forex Gain/Loss. You will eventually come to the Forex Gain/Loss Statement showing

Current Assets Dr Cr

Sundry Debtors   5500

Bank Accounts 7800  This shows a gain of Rs. 5500 and a loss of Rs. 7800

Click on Detailed to explode the Groups. If Sundry Debtors does not explode, use [Shift]+[Enter] on it. Hence, Sundry Debtors will show Foreign Customer with the Amount. Bank Accounts will show Dollar Account.

Print this statement or copy it by hand. Now create a ledger account by the name 'Forex Gain/Loss (it could be any name) under the

group indirect Expenses. Return to Gateway of Tally. Select to Accounts info -> Voucher Types. Select to Alter Journal. Tab down to the line Name of Class. Type Forex gain/Loss and press Enter. Use Class for Forex Gain/Loss Adjustments? Type Y or Yes. Under the Ledger Name select 'Forex Gain/Loss'. This is the Account that will be used for

adjustment. Press Enter to accept. You will return to the Voucher Type Alteration screen below the class you

have just created. Press Enter repeatedly to accept. Return to Gateway of Tally. Select Voucher Entry. Press F7:Journal. You now get Voucher Type Selection box where you select Journal and Class

Table Forex Gain/Loss. Change date to 31-12-98. Now

o Select Foreign Customer from the list of ledgers. The Bill-wise details sub-screen comes up. Select the invoice Export/1 which is the only one in the list. In fact, only those invoices involved in foreign exchange gain/loss will be available for selection. The amount displayed will be the gain/loss amount. Hence simply select it. Accept the amount and then End of List to complete selection for Foreign Customer.

o Now you are in the second line and in Particulars column of the voucher. Select Foreign

Supplier. Repeat the process of selection of the invoice. o In the Third line and in Particulars column do not adjust Dollar Account. Press Enter at

the blank field to go to the Narration. o Type 'Party accounts adjusted for exchange gain and loss'.

Reconciling the Company's Bank Accounts with the Bank Statement is a fundamental and regular task of accounting.

At the end of this unit you will able to reconcile the company's bank accounts with your banker's statement.

Tally Walk-through on reconciling bank accounts

Your current account bank has sent you a bank statement for the week ended 7 May 1998 showing the following entries

Bank Statement of J C Computer Supplies -Current Account

Date Particulars Deposits Withdrawals Balance

1-5-98 Balance b/f     35000.00

4-5-98Cheque 12789 ref Employee Wages   600.00 34400.00

4-5-98Cheque 12790 ref R N lyer   500.00 33900.00

7-5-98 Balance c/f     33900.00

Bring up the monthly summary of Current Account. (Display/Account Books/Bank Books and select the account).

Bring your cursor to May and enter. This brings up the vouchers for the month of May l998. Since you want to reconcile the statement for the period 1-5-98 to 75-98, change display dates to reflect the same period. (Hint - press F2).

It is helpful to see the Narration as that contains cheque numbers and other details. So press Fl2:Configure and activate Show Narration.

Since this is a Bank Account, an additional button F5: Reconcile will be visible on the right. Click on F5.

The display now becomes an Edit screen in reconciliation mode. The primary components are : o A column for the Banker's Date . o The Reconciliation at the button of the screen, showing:- Balance as per Company Books

amounts not reflected in Bank and Balance as per bank. Enter the bank date for the two payment vouchers for 500.00 and 600.00. Note that you will find

the change at the bottom for each and every voucher reconciled. Leave the dates blank for other vouchers by press Enter and accept the screen.

The next time you come for reconciliation, you will be presented with only those vouchers, which remain unreconciled. You are taken back to the ledger display of the account.

Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments .

Interest figures are typically desired in the following situations:

On outstanding balance amounts On outstanding bills/invoices/transactions (Receivable and payable)

Tally Walk-through to set Up interest calculations

You first need to activate the feature for the Company and then activate it for each specific ledger account for which interest is to be calculated.

You should now be at the Gateway of Tally.

Select F11: Company Features. Tab down to the Accounting Features and to the following options answer as follows:-

Activate Interest Calculations? Set it to Yes. Use Advanced Parameters? Set it to No. Accept the changes and return to Gateway of Tally

You will learn about Advanced Parameters later.

Simple Mode - Where Advanced Parameters are not applicable

Interest calculations on outstanding balances

interest calculation on outstanding balances is allowed for any ledger account. You simply specify the interest rate, and style of calculation. Nothing is required to be done for interest during voucher entry.

You will have to alter existing ledger accounts to permit interest calculations on them. The same operation will apply when creating a new ledger account

Activate and specify interest calculations in Current Account of JC Computer Supplies.

Select Accounts Info ->Ledgers -> Alter ->Current Account

Tab (or press <Enter>) down to the option Activate Interest Calculation? Set it to Yes. Now you have to set the Interest Parameters - the basis on which interest will be calculated for

this ledger account. Only two pieces of information have to be given:-

o Rate - give a rate say 15%   o Style - this the basis on which the rate is applied. There are 4 options

* 30-day month* 365-day Year* Calendar Month* Calendar Year

Select365-day Year. Accept the screen.

You are now ready to view the amount of interest that could be paid or charged by the bank on outstanding balances.

Book Entries and adjustment of interest

You have seen that interest is being calculated on JC Computer Supplies bank accounts but these have not been brought into books! They simply give you the interest implications. You must book them now.

How to enter the calculated interest amounts?

You must use Debit Notes and Credit Notes with Voucher Classes.

You will use Debit notes for Interest receivable and Credit Notes for Interest payable.

Interest is calculated on Simple or Compound basis and separate classes should be used for them.

Tally Walk-through to set-up voucher Classes for interest entries

You will set up classes for Debit Notes now.

Alter the Voucher Type Debit Note. o Gateway of Tally -> Accounts Info->Voucher Types Alter ->Debit Note.  

Tab down to the field Class.   Simply type the name of the Class. Type Simple Interest. In the Class screen that comes up, set the other options as above. You are taken back to the

Debit Note Voucher Type Alteration screen. Type Compound Interest for the second class. In the Class screen set yes to both the questions Use Class for Interest Accounting and Amounts

to be treated as Compound Interest. Accept the voucher Type and return to the Gateway of Tally

Entries using voucher classes

(do not attempt making entries now. You will do it in the walk through that follows)

To account for interest accrued and owing to JC Computer supplies o Use Debit Note and select the appropriate classo Debit Current Account (or the Debtor). The amount of interest comes up automatically.

Accept it. o Credit Interest Accrued account, which is an income account.o This has the effect of increasing the current account balance and is absolutely right for

compound interest calculations. Further interest would be calculated on the increased amount.

o However, that is not right for simple interest as interest on interest is not supposed to accrue. Hence, make another entry, transferring the interest component to Interest Receivable and crediting the Current account or Debtor account. The net effect will be :-Dr    Interest Receivable Account   (asset account)  Cr Interest Accrued Account (income account).

To account for interest due and payable by JC Computer Supplies o Use Credit Note and select the appropriate class  o Credit Mutual Loan Account (or the Creditor). The amount of interest comes up

automatically. Accept it. o Debit Interest Due account, which is an expense account. o This has the effect of increasing the Loan account balance and is absolutely right for

compound interest calculations. Further interest would be calculated on the increased amount.

o However, that is not right for simple interest as interest on interest is not supposed to accrue. Hence, make another entry, transferring the interest component to Interest Payable and reducing the balance in the Loan account. The net effect will be :-

Cr    Interest Payable Account   (liability account)  Cr    Interest Due Account (expense account).

Tally walk-through for Voucher Entry for booking Interest on balances

Compound Interest voucher entry

1. Go to Voucher Entry2. Date 30-6-98 3. Select F7:Journal -> Debit Note -> Class - Compound Interest 4. Debit Current Account Amount (the amount is automatically filled up with the

calculated interest) 946.86 5. Credit Interest Accrued 946.866. Narration: Interest accrued for the period 1-5-98 to 29-6-98 on balances7. Accept the voucher.

And nothing needs to be done! The Bank Account has been increased by the amount of interest due and the Income account of Interest Accrued also credited.

Simple Interest voucher entry

You will use the Simple Interest Voucher class and make the first entry as above. However, the above entry has the effect of increasing the Current Account with the amount due (compound effect). since simple interest does not calculate interest on interest amounts, you must make a journal entry to reverse the interest.

Interest for the subsequent period will be calculated by Tally on the balance after the adjustment entry.

You have to necessary go this route to take advantage of the auto filling of the interest amount which can appear only when we use the Bank Ltd account in Debit Note in the first place.

The additional entry that is required will be as follows. Do not make this entry. It is for information only.

Select F7:Journal Class Not Applicable. Use a normal Journal voucher for this entry

Debit Interest Receivable (a current asset account) 946.86 Credit Current Account 946.86

When interest is calculated for the following periods, the 946.86 will not be included as it has been reversed.

Interest Calculations on invoices

You can calculate interest on each invoice for the period it is outstanding wholly or partly. Transaction by transaction or bill-by-bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors. Obviously, bill-wise details should be active for the company and the party.

Tally walk-through for interest calculation transaction by transaction (bill-by-bill)

From the Gateway of Tally->Accounts Info -> Ledgers

1. Alter a customer account, First Independent Computers 2. Set Yes to Activate Interest Calculation. 3. The Interest Parameters now have three lines to answer. 4. Calculate Interest Transaction-by-transaction - Set it to Yes 5. Over-ride Parameters for each transaction - Set it to No. If set to No, you are not allowed to change interest parameters in voucher/invoice entry. If set to Yes, you can change the interest parameters during entry. 6. Give Rate 1% per 30-Day Month. 7. Accept the change and return to Gateway of Tally.

Report on Interest Calculated on outstanding transactions/bills Walk-through

From the Gateway of Tally, Display ->Statements of Accounts -> Interest Calculations -> Ledger -> First independent Computers

The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the transaction. Press Detailed to see the calculation.

Advanced Mode

In this section, you will be shown the use of advanced mode. Carry out the instructions where told.

Set 'Use Advanced Parameters' to Yes in F11:Company Features.

Advanced Parameters - Interest Calculations on outstanding balances

Alter the ledger account Current Account and tab down to Interest calculation. The following extra options now become available:

* You can now have multiple rates of interest.* Choice of balances - All Balances, Credit Balances only, Debit Balances only .* Applicability period - when is the interest applicable from and to which date.  * Choice of methods for Rounding off of interest amounts.

Abrief explanation on each is called for:

Balances : Interest can be calculated on all outstanding balances whether debit or credit. You would like to select only credit balances in case of accounts like Bank accounts if you want to know the interest that the bank might charge on overdrawn balances.

Applicable from : the date from which the rate is applicable to a specific date. If left blank then it is up to the last date.

Rounding off : Whether the amount is to be rounded off normally or upward or downward. You need to give the rounded to    amount. E.g. round off upwards to the nearest 10.

The advanced parameters are particularly useful where interest rates change from time to time.

Advanced Parameters - interest calculation transaction by transaction

1. Alter the ledger account of Bangalore Civic Authority and tab down to Interest CALCULATIONS.  2. Activate Interest on Bill-by-bill.

The following extra options now become available:

You can now have multiple rates of interest.  You can override advanced parameters during voucher entry. Hence, each entry could have

different parameters . Choice of balances - All Balances, Credit Balances only, Debit Balances only. Applicability - This actually applies to the viewing of the statement and not the levy of interest. Calculate from - You can decide Whether interest is to be levied from the Due Date or from the

Effective Date of the transaction (or the voucher date if effective date is not activated) or even date ranges specified during voucher entry.  

Choice of methods for Rounding off Of interest amounts.

A look at 'Calculate From Dates Specified during Voucher Entry

You have set up the Interest Parameters for Bangalore Civic Authority to calculate on Dates specified during Voucher Entry. We will take one invoice and put in the interest information.  Alter the invoice dated 19-1-99 for 15,00,000 Project Sales with 2 New Ref.s.Set the interest parameters to be 15% for Due date to 28-2-99 then 18% thereafter.

Your voucher screen should be as follows:

Interest parameters set during invoicing

Report on Interest Calculated on outstanding transactions/bills

You will get a report by Display -> Statements of Accounts -> Interest Calculations -> Ledger -> Bangalore Civic Authority 

Press detailed to see the calculation and the period. Previous transactions are calculated from effective date of Transaction as a default. Date Specified During Entry has not been used.

Note that part monies received have been accounted for and interest calculated on the balance.

Advanced Inventory

In the first volume, you learnt some basic inventory operations. You learnt to record movement of goods - goods in and goods out. There are many other aspects to stocks that are being taken up now.

Order Processing

In Tally, order processing is linked to inventories. You can track the order position of a stock item, know what goods that were ordered have arrived, whether you have fulfilled the orders on time and what is the delay, if any.

In this module, you learn how to record purchase orders, and to call the orders while entering a purchase invoice and likewise with sales orders and sales invoices.

You will also learn how to display outstanding orders position and the effect of orders on stocks.

Remember, orders do not affect financial records nor do they update inventories.

Activate Sales and Purchase Order Processing in F11: Company Features.

Activate Tracking numbers in F11: Company Features, if it is not already activated. In this unit, you will use Not Applicable for Tracking Numbers. We will take up entries using Tracking numbers in the next unit.

Create a stock item Bricks with unit of measure Pcs. This is tradeable item as well as to be used for construction. Stock will be maintained. Hence, Treat all Purchases as Consumed should be set to No.

Create a Supplier - Universal Bricks with bill-wise activated and no interest calculation.

Purchase Order Processing

Purchase Order details will also depend on configuration settings. Hence, have a look at the configuration and voucher types.  Activate Accounting allocations in Order Entry.

Enter a Purchase Order

1. Return to Gateway of Tally.  2. Select Voucher Entry->F9: Purchase ->Select Purchase Order  3. Voucher date: 15/12/98. Party's A/c Name: Universal Bricks  

4. Order No: The voucher number will be your Purchase Order number. This particular Order No. field is an additional field to record order number if different from the voucher number.  5. Name of the item: Bricks. (Once the name is given the Item Allocations subscreen pops-up that needs to be filled in.)  6. Due on: 25/12/98 - The due date for delivery of the item. This will enable monitoring of outstanding deliveries. The order can be split for delivery on different dates.  7. Location: Warehouse. (in case multiple location feature is active, this field is required to be given, else it does not appear.)  8. Quantity, Rate and Amount - 5000 Pcs @ 3 per Pc. The amount is calculated but is modifiable to enable rounding off.

Item allocation sub-screen:

Next Item: Since no other item is required, press [Enter] on the blank field to take the cursor to the tax/expense field.

Expense/Tax: Once the item details have been entered, you might specify tax to be charged and other expenses like freight, if any. The tax or expense has to exist as a ledger account or it may be created using [alt]+[C]. Select Freight @3% on the item values.

Narration: Optional.

Alter a Purchase Order

You can alter a Purchase Order by displaying it from a variety of places but is easier through the Purchase Orders Book or the Day Book.

Gateway of Tally ->Display -> Day Book or Gateway of Tally, Inventory Books, Purchase Order Book.

Sales Order Processing :--

Create Sales Orders

Sales order entry is exactly like Purchase Orders.

Sales Order details will also depend on configuration settings. Hence, have a look at the configuration and voucher types.

1. Gateway of Tally->Voucher Entry ->F8:Sales ->Select Sales Order  2. Voucher date: 16/12/98. Party's A/c Name: Wimbledon Properties  3. Order No: The voucher number will be your internal serial number. This particular Order No. field is for the customer's order number which is different from the voucher number. Enter WP/5.  4. Name of the item: Bricks.  5. Due on: 26/12/98.The due date for delivery of the item. This will enable monitoring of outstanding deliveries. The order can be split for delivery on different dates.  6. Location: Warehouse.7. Quantity, Rate and Amount - 4000 Pcs @ 5 per Pc. 8. Next Item: Since no other item is required, press [Enter] on the blank field to take the cursor to the tax/expense field. 9. Expense/Tax: Once the item details have been entered, you might specify tax to be charged and other expenses like freight, if any. The tax or expense has to exist as a ledger account or it may be created using [alt]+[C]. Select or create Tax @ 17.5%     to be charged on the item values.

Alter a Sales Order

You can alter a Sales Order by displaying it from a variety of places but is easier through the Sales Orders Book or the Day Book.

Gateway of Tally->Display-> Day Book or Display, Inventory Books, Sales Order Book.

View Order position

Stock summary is perhaps the best place to view the order position.

Gateway of Tally -> Stock Summary ->Detailed [F1]

Currently, all you see is the closing balances or stock in hand as on the last day of the period. However, you do not know how much stock is on order both inward and outward. if you knew that, you could take plan your stocks better and not lose out on orders.

1. Press the Orders button [alt]+[F7]  2. Select Sales Orders Outstanding  3. Type No for Due orders only. You are now in Sales Order Outstanding screen showing On Order items. Of course, you have only Bricks on order 4. Select the line Bricks and press Enter.  The outstanding Sales order for Bricks is detailed.  5. Select F12:Configuration.  6. Select Yes to all options.

You now see your Order Analysis with Sales and Purchase Orders outstanding position for the stock item Bricks.

1. Return to the Stock Summary screen  2. Select Detailed  3. Press [alt]+[n] Auto-Column Button.  4. Select Orders & Stock Details.  5. Remove Rate and item from display by configuring it using F12.  This will enable all columns to fit in one screen. Take note of the change in figures.      Can you accept an order for 2000 bricks ?  6. You may further drill down into each column to view greater detail. In the Stock Summary screen, you can even bring up a new column using [alt]+[C] the New Column button and get more options for detail. Experiment with Types of Values to get familiar with them. They are powerful and give great business information.

Adjust Orders

You adjust orders at the time of raising delivery notes and invoices.

1. Select Voucher Entry  2. Select Purchase -> Purchase 3. Enter a Purchase invoice no UB/6  4. Voucher date: 25/12/98. Party's A/c Name: Universal Bricks  5. Name of the item: Bricks. (Once the name is given the Item Allocations subscreen pops-up that needs to be filled in.)  6. Tracking number : Not Applicable as goods are accompanying the bill.  7. Order No: Select the order number.  8. All fields are filled up.  

9. Now enter as you would normally in a Purchase voucher. Quantity, Rate and Amount - 5000 Pcs @ 3 per Pc.  10. Expense/Tax: Freight @3% on the item values.

You have briefly used Tracking Numbers in Volume 1. You switched it on and then off. You have switched it on again in the Order Processing unit.You already know that tracking numbers activate delivery notes, goods received notes and rejection notes.  But largely, until now, you were buying and selling goods or services where the stock would be affected when making the purchase or sales entry. Many businesses deliver stock with a delivery note or a challan. The bill is raised later. The bill has to be linked or tracked with the goods already delivered. In Tally, tracking numbers do the job. Tracking numbers allow Goods Receipt and Goods Delivery Notes for goods not accompanied by an invoice to be linked with the invoice that is raised later. Of course, Tally permits the opposite too. A bill can be raised first and the goods delivered. Again, tracking numbers do the trick.

Tally walk-through for using tracking numbers

1. Go to voucher entry.  2. Select Purchase, Receipt Note.  3. Enter the following transaction:  4. On 12/12/98 - Ref GRN/UB - 1000 Pcs of Bricks received from Universal Bricks @2 per Pc.  5. For Bricks, select Tracking Number GRN/UB and give item details.  6. Press Enter on the blank Tracking number to return to the main voucher.  7. Accept the voucher and Return to Gateway of Tally  8. Select 'Display', 'Statements of Inventory', and then 'Purchase Bills Pending'.

Purchase Bills Pending screen:

1. Tally tracks down the Goods received but whose bills have not been received.  2. View the Profit & Loss Account and the Purchase Accounts.  3. Tally provides the purchase so that the profits are correctly arrived at.  4. View the Balance Sheet, Sundry Creditors. Has Tally provided for the liability?

Tracking numbers - track bills with goods delivered

Now go back to Voucher Entry

1. On 15/12/98, you receive the purchase bill no UB/15 from Universal Bricks for their Delivery Note no GRN/UB for 1000 Pcs of Bricks @ 2 per Pc. You get 30 days credit.  2. Select Purchase, Purchase      Ref: UB/15      Cr Universal Bricks 2000  

    Billwise UB/15 30 days 2000

    Dr  Project  Purchase 2000  3. Inventory Allocation

Tracking Number: Select GRN/UB. Note UB/15 is also listed there. Do not select this. Accept the other information that is filled up. Press Enter on the blank Tracking number to

return to the main voucher.  

4. Cost Centre is activated for Project Purchase. Select Projects and Assignments Category and Buildings Cost centre.  5. Accept the voucher.  6. Now go back to Purchase Bills Pending. Is there anything pending?

In this unit, you will learn how to maintain batch information pertaining to Stock Items and their manufacturing date and expiry date.  

Activate Batch-wise Details

Batch-wise details are given for maintaining batch information pertaining to stock items. The various options are activating batch-wise details, setting manufacturing date and expiry date. Manufacturing date and expiry date options can be used only in accordance with batch-wise details as per requirements.

Tally walk-through to activate batch-wise details:

1. Return to Gateway of Tally.  2. Activate the "Maintain Batch wise details" in F11: Features.  3. Activate Set Expiry Date for Batches. 4. Accept the screen.  5. From Gateway of Tally go to Inventory Info. 6. Create a new stock Item - Saridon.  7. Create it under stock group Medicines (create the group if it does not exist). 8. Put it under stock category 'Pain Killers'. (create the category if it does not exist) 9. Activate the option "Maintain in Batches", in that item.  10. Track date of Manufacture - Yes11. Use Expiry dates - Yes  12. Alter Standard Rates - No  13. Rate of Duty - 5  14. Accept defaults for other options.  15. Get back to Gateway of Tally menu and go to voucher entry.

Entering Batch-wise details for Purchase voucher

1. Supplier - Ganeshji Pharmaceuticals (create one if it does not exist)  

2. Item name - Saridon  3. Select Voucher Entry, F9: Purchase  4. Create the following entries: Date 15-12-98.Purchase 250 nos. from Ganeshji Pharmaceuticals at 5.50. Purchase invoice number GP. Credit period 60 days. After you enter item an item allocation screen will appear, here enter batch no as ST/101 having manufacturing date as 15-8-98 and Expiry Date as 14-8-1999. Received inb Warehouse.  5. Accept the voucher.

Batch allocation in Purchases

A Bill of Materials contains a list of items that make up another item. In other words, it is a list of constituent items for a product.

Enable Bill of Materials Facility

To activate or enable Bill of Materials go to Gateway of Tally, Click on F12: Configure and select Accounts/inventory Info from the menu. Now say yes to "Allow component list details (Bill of Materials)?".

A Bill of Material should be available while manufacturing an item. Hence, first enable manufacturing entries. This is done through a stock journal.

Create a new manufacturing journal

Create a new voucher type called Manufacturing Journal under Stock Journal.  

1. To create a new Manufacturing Journal go to Gateway of Tally. Select Accts Info, Voucher Type and then Create.

2. Give Mfg.Journal (Manufacturing Journal) as the name and under ' Voucher types' select Stock Journal.  

3. Follow the normal Voucher type creation as explained earlier for the rest.  4. Select Yes for "Use as Manufacturing Journal" and accept the screen.  

Create a Bill of Material

You can create a Bill of Material (BoM) for any stock item. Typically, you would like to create a BoM only for those items that are being manufactured. You will specify a BoM at the time of creating a stock item or altering its master.

Tally walk-through to specify its Bill of Materials

JC Computer Supplies decides to get into the business of Televisions. They want to assemble their own televisions and sell them.

Therefore,

1. Create a stock item Television. Create it under a new stock group Home Electronics.2. Unit of measure - nos.  3. Say Yes to "Set Components (BoM)?"  4. Once this is made to yes it takes you to a screen where you can enter 1 each for Unit of Manufacture and items VDU, Picture tube, IC Chips, Sound Card and aerial which are required for the assembly of one Television. These items do not exist. Create     them and group them under a stock group Television Parts. Unit of measure - nos.5. Give Standard Cost for each of the items as follows:-6. VDU - 2000, Picture Tube - 3750, Sound Card - 500, IC Chips - 5000, Aerial - 300. 7. You propose to store them On-Site. Accept the screen. Accept all other defaults. None of the items will have any opening stock balance.

The purpose of creating a bill of material is to enable consumption of the materials in the ratio specified when the product is manufactured. Tally uses a Manufacturing Journal to enter goods manufactured with bill of materials.

First you should purchase the components required to produce the television. Make a purchase voucher entry as follows:

On 21 December 98, bought 10 pcs each of the following at the standard cost mentioned against them:

1. VDU - 2000, Picture Tube - 3750, Sound Card - 500, IC Chips - 5000, Aerial - 300.

Paid cheque from Current Account immediately. Stored On-Site. Account Purchases. Ignore Tax.

Manufacturing Journal Entry

From the Gateway of Tally Menu select Voucher Entry, As you have created new voucher type Mfg. Journal, a pop-up menu will show both the default Stock journal and the manufacturing journal.

1. Select manufacturing journal.  2. Under the Name of Product to be manufactured, type Television.  3. Manufacture it in the On-Site.  4. Quantity to be manufactured - 5.  5. Under Component (consumption) the component list for the television to be manufactured under proportionate quantity of each component is picked up automatically. The default location as specified in the BoM is also given for each component. The standard cost is picked up for each item. However the entire component list can be altered.  6. It will take you to the screen giving the details of additional cost. Under Additional Cost Components you may specify the additional cost incurred for producing the item.  Additional cost of Wages - 3000 and Power - 2000 have been incurred. Add them in. If ledger accounts for these expenses do not exist, create them under Direct Expenses.  7. Note that the additional costs entered for the Iedgers, do not reflect in the relevant ledger with the amount but only add to, the cost of the item.

Manufacturing journal :

This feature is provided in Tally to allow different pricing structure for the same item depending on their quantity of purchase or sale.

Activate and create Price List Types

1. Press F11: Features. At the bottom the last option is Set/Modify Other Company Features. Type Yes.  2. Activate "Use Multiple price levels for invoicing". Tally takes you to "Company Price Levels" screen.  3. Type the different price levels - Retail Sales, Export Sales and Whole Sale and accept the screen.  4. Accept all the features and return to Gateway of Tally.

Create a Price List

1. The following are the steps to create a price list. Simply go through them but create the price list in the exercise.  2. From the Gateway of Tally select Inventory Info and Click on Price List. 3. Select the required stock item group from the List of Groups or you can even select All Items if you require to set the price list for all the Stock Items you have created.  4. Now the Price List screen is displayed.  5. Select the price level from the pop - up for e.g. Retail Sales and enter the date from which your price list is applicable.  6. Enter the Quantity, Rate and the Discount % for the respective items. You will find the Standard Cost Price of the items displayed on the extreme right of the screen  7. More than one Price level can be entered for a single Stock Item.

Note: These prices will automatically appear while making an Invoice once the price level is specified.

When we change the price list with a new 'applicable from' date, the previous prices given for the item will be shown in the Historical Details column.

Now the customer ledger accounts have to be altered to put them in the relevant price level.

Zero valued entries in vouchers are sometimes required, for example, zero rated tax, or when you need to raise an invoice for free samples. This only means that the amount of the entry will be zero.

To allow 0 valued entries in vouchers the feature should be activated in F11: Features. You have already done it but please confirm.

Tally permits different valuation methods for different items, that is, it does not restrict you to one method of valuation only for all items. The selection of an appropriate costing method is essential in order to select an appropriate stock valuation method. This helps in knowing the value of the stock both on cost basis and sale basis, which shows the approximate profit margins lying in the inventory.

Activating Stock Valuation

1. From the Gateway of Tally -> Inventory Info ->Stock Item Creation Screen.  2. Press F12:Configure. Advanced Entries for Inventory should be activated.  3. Return to the Stock Item screen.  4. Under behaviour, activate costing and market valuation methods by entering values in Units and Set Std Rates.

The different costing methods are:

Average Cost At Zero Cost First In First Out (FIFO) Last Purchase Cost LIFO Annual (Last In First Out Annual) LIFO Perpetual (Last In First Out Perpetual) Monthly Avg. Cost Standard Cost

The different stock / market valuation methods are:

At Zero Price Average Price Last Sale Price Standard Price

Average Cost / Price:

Tally recalculates the average value after each purchase or sale for the whole year.

At Zero Cost:

The stock is valued at zero cost.

FIFO (First In First Out):

Tally assumes the sale of the oldest goods first.

Last Purchase Cost / Sale Price:

The stock is valued at the latest price.

LIFO Annual (Last In First Out Annual):

Tally assumes the sale of the newest goods first taking into account the current financial year.

LIFO Perpetual (Last In First Out Perpetual):

As above, but the last purchase price continues from the previous financial year.

Monthly Avg. Cost:

Tally recalculates the average value after each purchase or sale for the whole month.

Standard Cost / Price:

A pre-determined value that you have entered earlier during the stock item creation.

Advanced Inventory features

Tally also provides the facilities for:

Ignoring difference in stock due to physical counting.  Ignoring negative balances. Treating all sales as new manufacture. Treating all purchases as consumed. Treating all rejections inward as scrap. 

o Depending on the requirement, select YES or NO.

Ignore difference Due to physical counting. o You are allowed to record the physical stock as counted, by way of a physical

stock voucher. There is, usually, a difference between physical counted stock and that appearing in the records. If you wish to ignore the difference and continue using the stock as per books, select yes. It is, however, advisable not ignore the difference.

Ignoring negative balances. o In case of negative balance for stock items in stock reports this option can be

selected. Select as required.   Treating all sales as new manufacture.  

o This is one way to avoid negative balances in the stock records. if you wish to avoid the need to pass entries for manufacture or goods in and can be automatically done when goods are sold.

Treating all purchases as consumed.

o Issues are automatically raised for all goods purchased, if this is selected. you do not wish to keep track of issues for this item.

Treating all rejections inward as scrap.   o If you do not want rejected goods coming in to be taken back into stock, select

Yes. Otherwise , rejected goods received, though recorded separately through a Rejection note, will be taken back into stock.

Monitoring stock position and movement is an important activity both from customer service and control aspects. Hence, we will dwell on the various inventory reports that Tally produces for stock control.

Stock Summary

The Stock Summary Report gives you the stock-in-hand position as of the last date of entry. Stock-in-hand or Closing balances are calculated from the stock transactions entered till date.

Your last date of entry is 1-3-99 and the current date is also 1-3-99. Press F2 and change to 1-3-99 if the current date is any different.

To display Stock Summary, select it in the Gateway of Tally.

Stock Summary

Examine your screen. Stock groups are displayed in bold. Stock items not grouped but directly primary, are displayed normally. Here all the items are grouped.

If you do not find total quantity displayed for the stock group 'Parts', 

1. Bring the cursor on it. 2. Press <Ctrl>+<Enter-> to alter the Group Master. 3. Change No to Yes for Quantities Can be Added? 4. Press Shift+Enter to explode the Group Parts. You now have two sub-groups.

o Press ctrl+Enter and change No to Yes for Quantities Can be Added for each of them.

Now can you see the quantities for the group Parts?

Do the same for the Stock Group 'Systems' and 'Software'.  

However, Software still does not show the total quantity. Furthermore, the report itself does not show total quantity. Only amounts are shown. Why?  Only items having the same units can be added. Hence, the entire Stock Summary contains items with different units of measure, e.g., 'nos', 'bags'.

Movement Analysis

Movement analysis reports details of stock flow vis-a-vis customers and suppliers.  This reports only for accounted transactions, i.e. transactions for which vouchers have been made. However, stock journals are also reported.

To access Movement Analysis Statements

Go to Gateway of Tally -> Display -> Inventory Books -> Movement Analysis Various perspectives are available and we shall discuss each:

Stock Group Analysis

Select 'Stock Group Analysis' from the movement analysis menu and select any one stock group name from the list. This brings you the details of inward and outward transactions done for all the stock items in that group. Each column have three sub columns: Quantities, Eff. Rate and Value. Click on F1: Detailed to see more details of the items listed in the report.

Category Analysis

Select 'Category Analysis' from the movement analysis menu and select any one stock category from the List. Tally brings you the details of inward and outward transactions done for all the stock items in that category.

Stock Item Analysis

Select 'Stock Item Analysis' from the movement analysis menu and select P200MMX stock item from list of items. The screen displays the details of 'Movement Inward' and 'Movement Outward' with the movement values of the stock item, which you have selected. The Item Movement Analysis screen should look like this (do not worry if the figures do not match exactly. The screen is an illustration only):

1. Press Enter on the 'Party Name' to view the next level of the information. Can you go down to further levels of detail? 2. Return the Item Movement Analysis Screen.3. Click on New Column button. Bring up the stock item P166MMX as a new Column.4. How many of these have Sharma & Son's bought?5. Press F12: Configure and select to view only 'Buyers Section' The rest can be switched off.6. Can you see Sharma and Son's buying pattern?7. Move the cursor on to P166MMX column.8. Press <Enter> to see the break-up of the sales made to them.9. Use Ledger Analysis to view sales to Sharma & Son's.

Group Analysis

In this analysis you will find the sales and purchase transactions done for the inventory items under a group, e.g.., Sundry Debtors.

To get the report from the movement analysis menu, select 'Group Analysis' and select any one Group from the list of groups.

Ledger Analysis

Ledger Analysis report is same as the 'Group Analysis', but the details displayed are the Items purchased and sold to the customer under that ledger.

1. Select Sharma & Son's to view sales made to them.2. Use F12:Configure to limit the columns to Sales only.3. Select a new column for First Independent Computers. What did they buy?

Transfer Analysis

Transfer Analysis report the details of an item transferred from one location to another location.

1. Select 'Transfer Analysis' from the 'Movement Analysis' menu2. Select Stock Journal from the list of voucher types3. To display a list of items with 'Goods in (Production)' and 'Goods Out (Consumption)' details.4. Can you drill down?

 Click on Print to print the statement. (Check with your supervisor before you print).

Stock Query

Stock Query is a real-time tool to help negotiate orders. In a single neat screen, you have all the necessary information on an item required to deal with a prospective customer. You even have the cost and price details of alternative items that you can offer! This report brings out the best use of Categories for stock items.

To view stock query,

Return to Gateway of Tally. Select Display, Statements of Inventory, Stock Query. You get the stock and price details of all spread-sheets! Select F12:Configure. Select to show items of the same group. Now you can view all products from Ace!

Final Accounts and Reporting

In this module, you will look at the overall performance of the company JC Computer Supplies. You will study the various management reports and also learn about Budgets and Controls. You will learn how to interact outside JC Computer Supplies with the help of Export and Import of Data and Group Consolidation.

Budgets & Controls

The main purpose of Budgeting is to control the expenditure. Tally allows you to create multiple budgets. There could be budget for specific purposes, e.g. for the Bank, for the Head Office, Marketing Budget, Finance Budget etc.

Tally Walk-through to:

Create budgets

1. Activate "Maintain Budgets and controls" in F11: Features. 2. From the Gateway of Tally select Accounts Info and click on Budgets and Create. 3. Give the name of Budget for e.g. Corporate Budget under Primary Budget.

o Specify the period of the Budget. The period could be a Month, a Year or any period

starting from any date to any date. o Under Set/Alter Budgets of, you may set the budget for groups of ledger accounts or for

ledger accounts individually or for cost centres or all of them.   o We shall take up Budget for group only. Hence Enter Yes under groups.   o Give the names of the groups for which you wish to set the Budget.   o For each group name cost centre may be there, but if you select not applicable then the

budget is not for any particular cost centre but the company as whole.   o Under the Type of Budget a pop-up of two different kinds of Budgets appears.  

4. Enter the budget amount for the specific group.   5. You can Budget as many groups and finally accept the screen.  

Alter a Budget

From the Gateway of Tally select Account Info., Budget and press Enter on Alter. Select Corporate Budget from the List of Budgets, select to alter Groups, Alter the necessary fields and accept.

Delete a Budget

Choose to alter a budget. Select Corporate Budget. Press [Alt + D] to delete it. You should not have Corporate Budget anymore.

Display Budgets and variances

Budgets can be displayed in newcolumns in most financial statements like the Balance Sheet and Profit&LossAccount.

The Trial Balance and Group Summaries have a Budget Variance button [ALT]+[B] that is activated when there is even one budget set up for the company.

Furthermore, the new column button in the Balance Sheet and most other reports can be used to bring up the budgeted figures alongside actuals. F12:Configure to set up how you want to see the variance.

Tally Walk-through for displaying budgets and variances

1. Display the Balance Sheet as on 3l-12-98.  

2. Select New Column Button  3. Select the options as given below: 

a. From: 1-4-98b. To: 31-12-98c. Currency: Base Currency

d. Method of Stock Valuation: Default

e. Budget Value: Office Budget

f. Show Budget Variances: No

4. Display theTrial Balance of JC Computer Supplies for the period ended 31-12-98.5.Select Indirect Expenses.6. Press F12 and set No to both Opening and ClosingBalances and Yes to Transactions and Net transactions. Accept otherdefaults.7. Use the Budget Variance button to see the budget figures and thevariance.8. Press F12 and set Show Percentage to No.

Financial Analysis Reports

In Volume 1, you learnt how to display and print a statement. During different exercises too, you have displayed information. You already know how to display and print! Remember, Tally's display philosophy is - first summaries then details.

Apart from the three critical financial statements and the Stock Summary, that are directly on the Gateway of Tally, all other reports, books and statements are accessible from the Display menu. Therefore, if you need to see something, go to Display!. Of course, senior managers who are advanced users go everywhere from the Balance Sheet. How?

Tally Walk-through for some display operations

Tally's information is presented in summarised form. You then either explode it on the same screen or drill down to further details. You also use the different display options on the button bar to analyse the information.

Explosion and Drill down

For details you can either:-

1. Simply bring the cursor on the line and press Enter, or 2. Select Detailed in the button bar, which will explode all lines into the next level of detail, or

3. Bring the cursor to the desired line and press <Shift>+<Enter>. The same pressed again will revert the line to condensed state.

4. Try all the methods on the Balance Sheet.

Temporary removal of lines from display screens

You can remove from the display lines not required for the current view. Hence, you can remove the group 'Current Assets' from the display of the Balance Sheet. You can also remove ledger heads from ledger level reports, e.g., Group Summary display of Indirect Expenses.

1. Bring the cursor on the line and press <Alt>+<R>. 2. To show the removed line again, press <Alt>+<S>.

You will now learn how to display different financial reports. You will actually display some of them. Repeat them as you read them.

Display Balance Sheet

Return to Gateway of Tally. Select Balance Sheet. It comes up for the date of last current dated entry. Your current date is 1-

3-99 and the last date of entry is also 1-3-99. If the current date is not 1-3-99, change date to it.

Balance Sheet as on 1.3-99

Select Detailed. Does it explode? Select Condensed. To return to the same display. Place the cursor on Current Assets. Press <Alt>+<R>. Does it disappear? Press <Alt>+<S>. Use <ALT>+<C-> or select New Column in the Button Bar.

New column parameters

1. Enter June against the To: field. Press Enter.2. Select the base currency for Currency.3. Select Default for Stock Value.4. Select Actuals for Budget Value.5. You should get a double column Balance Sheet as the one below. It shows you the state of

affairs as on two separate dates, viz., as on 30 June 98 and on date.

Two Columnar Balance Sheet

1. Bring the cursor to any amount in the column 30-6-98.2. Select Del Column in the button bar.3. Experiment with other options, currency and budgets.4. Experiment with other buttons.

Return to Gateway of Tally. Select Balance Sheet again.

Bring your cursor on Profit & Loss A/c Press Enter. Where has it taken you? Press Escape. Do you return to the Balance Sheet? Experiment with drill down by selecting Current Assets. Go down to the Cash Book and note the steps. Can you go right down to the voucher?

Profit & Loss Account

You have already seen the Profit & Loss Account from the Balance Sheet. However you can also see it straight from the Gateway of Tally.

Select Profit & Loss Account at the Gateway of Tally.

Now experiment with all the buttons in the button bar.

Cash Flow

Cash flow is the movement of money in and out of your business. The cash flow report displays the monthly 'inflow' , 'Outflow' and 'Nettt Flow' of cash.

To select Cash Flow:

Go to Gateway of Tally -> Display -> Cash/Funds Flow -> Cash Flow

The default cash flow shows a monthly analysis of the cash movement in the company. Press Enter on any month and you get the Cash Flow Summary i.e., the details of Inflow, outflow and the Nett Flow of that particular month.

1. Bring your cursor to May and press <Enter>.2. Select detailed.3. Press F2 to change the period to May 98 to July 98.4. Select Auto Column5. Select Monthly. You have monthly Cash Flow for the Quarter!

Funds Flow

This report gives the Working Capital analysis of the company. it gives the details of the movement of funds in the company - the source of funds and their application.

(Working Capital = Current Assets - Current Liabilities.)

To select Funds Flow: 

 Go to Gateway of Tally -> Display -> Cash/Funds Flow -> Funds Flow

The default funds flow shows monthly change in the working capital i.e., the increase or decrease in the opening balance. Press Enter on any month and you will get the Funds Flow Summary i.e., the details of source and application of funds according to groups. This screen also gives the calculation of Opening Working Capital, Closing Working Capital and Nett Increase in Working Capital. 

The concept of consolidation in Tally is simple, yet powerful. You can consolidate the accounts of any number of companies at any time, as well as keep them separate. You may virtually play around with bringing companies into the group and separating them at will. To do this a group company has to be created.

Group Company

Accounts of different companies belonging to the same management are normally required to be consolidated to present the financial position of the group of companies as a whole. A group company is an identity given to the merged accounts of constituent companies of the group.

Create a Group Company

A Group Company can be created only for companies that have already been loaded. Hence, we must first load two or more companies whose accounts are to be grouped.

Tally Walk-through to create a group company

1. Load JC Computer Supplies if not already loaded. 2. Using F1: Select Cmp button, select My Company. Selected companies will be displayed in the

left part of the Gateway of Tally screen. 3. Press [Alt + F3] and select 'Create Group Company'. 4. Enter the name Group Company (it could be any other name), address and tax details as shown

below. 5. Select both the companies listed in the pop-up list. 6. Select 'end of list' to finish selection.

Note: You are not permitted to go to the voucher level in the group company and hence, are not allowed to create or alter vouchers.

Your group company creation screen should be similar to the one below.

Alter a Group Company

The normal Alter method of a company is followed in the case of a Group Company. You can select and deselect members through the After mode. However, any change will come to effect only on shutting the Group Company and then reloading it.

Once the Group Company is created and loaded, it also becomes the active company. Notice the constituent companies are given below the group company and are slightly indented to distinguish the group company.

You will learn about Tally's export and import capabilities, which enable Tally to talk to the outside world. Export of statements and data is sometimes required by companies to carry Tally's data into other systems like spreadsheets and databases. Import of data will cover only import of Tally data and not data from other systems. Import from other systems requires writing of import routines using Tally's Definition Language TDL and is outside the scope of this training.

Export information

Export of information is related to the Print operation. In many reports, the print option toggles to Export, for example, the Trial Balance. You give the output file name and the extent of information required for the export.

You might need to export information for different purposes, viz,

To re-import into another company run on Tally. To export out for use by other programs.

To export data for re-import into Tally, you would export masters and then data.

Export Masters

1. Select the following path from the Gateway of Tally: o Display ->List of Accounts

2. Click on Print. Notice that it toggles to Export. 3. Click on Export. 4. Master.Exp is the default file name. The default destination path is the current Tally directory. 5. Type of Masters - You will notice that you can select any of the mentioned master types and

export. Select All Masters. 6. Export Closing Balances as Opening - Retain No. This option is useful when creating a separate

company for the new financial year. In that case change to Yes.

Export Data for re-import into another company

1. Select the following path from the Gateway of Tally:  o Multi Account Printing -> Daybook

2. Click on Export. 3. Daybook.Exp is the default filename and the current Tally directory the default destination

directory. 4. Choose the period whose data you want to export. This takes time and memory space. Hence,

limit the period at one time.

5. Accept to export.

Data exported from the company can be imported into another company.

Import of Data

Import Masters

1. Return to Gateway of Tally.2. Select and load My Company (if you had not created it, create it now. Ensure that it has the

same financial year as the current company JC Computer Supplies).3. Ensure that you are in My Company. It will be the company in bold letters in the left section of

Gateway of Tally screen.4. Display Statistics to check number of entries. Note the details down or print them out after

consulting your trainer.5. Select Import of Data.6. Select All Masters.7. Type in the file name Master.Exp. The name and path of the source file should match. Here it is

the current directory, hence you do not need to give the path.8. The opening balance can be modified with the figures in the exported source file. Select

Combine Opening Balances to add to existing balances.  Hence if  the current company data does not have any masters, after import it will have the balances imported. if your source file did not have any balances, this option will simply add 0 to existing balance leaving them intact. Select this option carefully.

9. Format - select Tally (5.4) Format. Notice that you can import data from the previous version too.10. After import, check the statistics to verify that import is completed successfully. if you get any

errors in import, check the TALLY.IMP file in the current directory for error messages. Take the help of your trainer in case of errors.

Import Vouchers

1. Return to Gateway of Tally.2. Select import of Data -> Vouchers.3. Give the filename 'Daybook-Exp'.4. Format - Tally (5.4) Format.5. Check the Statistics after import.

Export reports

To export statements like the Trial Balance,

1. Display Trial Balance2. Click on Print. It toggles to export.

Tally Administration

In this module, you will learn how to configure Tally. We will specifically leave out installation and network related issues, which are not within the scope of this course.

Voucher Classes

Voucher class is a novel way of automating accounting allocations during invoice entry. It is a table for predefining the entries to make invoice entry a simple task. This is particularly useful in sales invoicing where the nominal ledger account, to be credited for each item of sale, is defined once. During voucher entry, the accounting credits for items sold are done automatically. Additional accounting entries like, tax, freight, and other charges can be predefined to be carried out untouched during actual invoicing.

Voucher class permits:

Automation of entries to predefined ledger accounts. Automatic rounding off to preset value limits.

The class table is split into three sections.

Restriction of groups for which Class can be used. Default accounting allocation for each item in invoice. Additional accounting entries.

Restriction of groups for which Class can be used.

Under this section, the option to exclude/include groups is available. This is done to work with selected groups pertaining to the Class, which makes the invoice entry simpler.

Default Accounting Allocations for each item in Invoice.

Under this section, there are five sub-sections. The explanation is as follows-

Ledger Name

Select the ledger to be credited for each item sold, in the invoice. More than one ledger can be affected for each item, e.g., for tax inclusive items, the ledgers to be credited will be sales and tax in a definite proportion. This is where percentage comes in.

Percentage

This is useful in tax inclusive price cases, you can specify the sales ledger account as, say 82.5%, and in the next line, the tax account with the balance 17.5%. Normally, for tax exclusive prices, you will give 100% for the sales account. The percentage symbol is required to be mentioned.

Rounding Method

This may be used only where the sales account is not 100%. Calculated amounts may be required to be rounded-off upwards or downwards or normal. Normal is rounding to the number of decimal places specified for the currency base on the less than 5 and greater than 5 rule. You can set your own rounding-off rule, e.g., roundoff to the next whole number. In such a case, you will give upwards.

Rounding Limit

For the previous example, you will set it to 1, to achieve the amount to the next whole number. To round-off upwards to the nearest 50P, you will set it to 0.50.

Override using Item Default?

This is a question to be answered Yes or No. Item default here, refers to the sales ledger account that you may have to set for the stock item, e.g., for 'Computers' Sale of Finished Goods. If in the class table here, you mention sales-Local, and set No to this question, then sale-Local will be the account effected and not sale of finished goods. Setting it to Yes will affect sale of finished goods. The advantage of this is that you can use different classes to affect different sales accounts.

Additional Accounting Entries

This part is relevant for tax and other charges like freight etc.

Ledger name

This is self-explanatory. You can give any number of ledgers.

Type of calculation

Different class methods are provided and select the one suitable. The value basis that you will provide in the next column will calculate using the type of calculation specified.

Value Basis

Give the amount, which is to be used for the Type of Calculation. For percentage, you must use the symbol %. Hence, Tax on Sales is 17.5% on Item Rate to use the rate given in the stock item. The method Total Amount rounding will round the total invoice and put the difference in the ledger name mentioned here. Hence the account Rounding Off will contain the sum that essentially rounds off the invoice to the desired level.

Rounding method and Rounding Limit have explained already.

Remove if Zero?

This is a question to be answered Yes or No, essentially to permit Tally to ignore the account and not make any entry in it if it's value is Zero. If yes, ensure that you are permitted to make Zero valued entries in F11: Features. No will record the invoice in the ledger account with Nil amounts. Under normal circumstances, you may wish to set this value to Yes.

Effect on Cost Centres

If a voucher class is used, manual allocation of the entry to cost centres is not possible. A cost centre class can be used in such cases.

Cost Centre Classes

Cost centre Class can be created in F11: Company Features itself. Go through 'Set/Modify other Company Features' and activate 'Use Predefined Cost Centre allocations during Entry'. This enables you to pre-define the proportion in which the voucher amount is to be allocated to different cost centres. The allocation is then done automatically and in the background.

Other Company Features Screen

Create a Cost Centre Class

1. Create a Cost Centre Class, viz, CostClass. 2. Cost Category - Projects & Assignments. 3. Cost Centre - Projects 100%

Create a Voucher Class and an Enter an invoice

1. From the Gateway of Tally select Accounts info, Voucher Type and press Enter on create 2. Under the name type Class 1. The voucher type is Sales. 3. Type Local under the "Name of the Class" and press Enter. It takes you to the class allocation

screen of the Class Local. 4. Under exclude these groups select End of List from the Pop-up list and select Sundry Debtors

under include these groups. 5. Select system sales from the List of Ledger Accounts, type 100% under percentage. 6. Under additional accounting entries select the ledger freight charges from the pop-up menu.

Under type of calculation select 'On Total Sales'. 7. Give 5% for value basis and not applicable for rounding method. Enter Yes under 'Remove if

Zero'. And 17.5% is allocated to Sales Tax ledger account your screen should be look like given below.

8. Accept the screen. Accept the Voucher Type and return to Gateway of Tally.

Invoice Entry in a Class situation

1. Select voucher entry and click on F8: Sales. 2. From the pop-up menu, select Class 1 and subsequently select Local from the class table. 3. Select the Cost Centre Class as CostClass. 4. Date of the voucher - 2-3-99 5. You can notice that the Ledger account Freight Charges is already displayed. 6. Type Ref No. as CL123 and select First Independent Computers from the popup menu. You will

notice that pop-up list shows only  Sundry Debtors which was included while creating the voucher class.

7. Press Ctrl+Enter to alter the ledger details of First Independent Computers.  

8. Confirm that the Price Level is set to 'Wholesale' and accept the screen.   9. Retain Wholesale for the Price Level in the voucher.   10. Accept the forthcoming screen. From the list of items Select PCGames2OOO. Tracking number

not applicable, Warehouse, Qty 3 pcs, Price 250. Accept the item allocation screen.   11. The freight charges and sales tax are calculated automatically on total sales (as was specified in

the Class) and displayed. 12. The systems sales ledger account is automatically credited in the voucher.   13. Accept the screen

Security Control is required in an environment where many people work on the accounts on the same computer or the same set of accounts on a network. In a typical business environment, different levels of staff will have different responsibilities and consequently different authorities. You have seen that, Tally has a variety of management reports that are sensitive in nature as also the flexibility to create, alter, display and print any information. Security Control system of Tally is used to set the authority rights of groups of people to prevent or allow them to do any or more of the following in the different areas of Tally:- create, alter, display and print Security Control may even be used to prevent other people from using the system.

Tally has a very customisable 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.

Tally has two security types already setup 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.

Security control can be activated during company creation or from company alteration. Once this is activated Tally will ask you to enter the name of the administrator and the password.

Create New Security Levels

1. From the Gateway of Tally Press Alt+F3, which brings up the Company Information menu. Select security control and Enter on Types of Security.

2. Under the List of Security Levels Enter Manager and press Enter which brings up the Level definition screen.

3. The Level definition screen displays the following. o Name of security level: This defaults to the name you had cre ated. o use Basic Facilities of : The default is the owner. However the other option  is also

available - Data Entry. 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. Select Owner.

o Days Allowed for Back-dated vouchers: This is the number of days the users of this level are allowed to alter 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. Enter 0.

 This is only effective if you disallow back dated entries in disallow column.

Security Levels Definition screen

Cut-off date for Back-dated Vouchers:

Specify the dates before which users of this profile or Security level may not create or alter vouchers. This is additional control over and above 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. Enter 5th April.

Once the above four are entered the screen is divided into two broad columns having two sub-columns. The left side is to disallow access to the various options of the systems. The right side allows the security level different facilities.

The sub-columns are Types of Access and List of Reports under both Allow and Disallow facilities Enter the type of access you wish to give and the option sought to be controlled. Once the entry is completed select End of List from Type of Access field to complete the allocation.

You are taken back to the screen "Security Levels for Company" at a blank field following the one you just created. Follow the same procedure if you require to create another Security level else 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.

Note: Only the Administrator can assign Users and their Passwords.

Alter/Display a User or Type of Security

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

Tally Audit provides the capability to the Administrator/Auditor to track changes in the accounts following his previous review. Changes of two areas are important changes in transactions or vouchers and changes in ledger masters. Only material changes are considered, i.e., a change in the narration does not effect the integrity of a transaction, hence it would not be considered as a change.

Tally Audit feature should be enabled while creating the Company.

1. To view the Tally Audit Lists, From the Gateway of Tally select Display, Statements of accounts and Tally Audit.

2. To view the Vouchers Audit List select Vouchers from Tally Audit. 3. Click on F12: Configure and enter Yes to "Show Entered/Altered By".

The listing now incorporates the User's name.

Placing the cursor bar on the relevant voucher click on F7: Accept One.

This would accept the voucher as valid and removes from the list.

There is also an option F7: Accept All. If you are satisfied that all the vouchers are valid then click on this option.

Note: Do a disciplined verification of the list so that it is periodically cleared and only vouchers that are of concern remain.

To view the Ledger Audit list select Ledger from the Tally Audit.

A screen showing the ID, Ledger Names and the Opening Balance is displayed.

The Audit List is presently empty.

Make changes to any two Ledger Accounts these will be shown in the list of new or altered Ledger Accounts. Notice that their ID does not change. Hence it is useful to track them. The user who changed the accounts and when he did it, is identified.

If you are satisfied with the changes made in the ledger click on F7: Accept One or F7: Accept All. This would accept the ledger as valid and will remove from the list.

In this unit, we shall discuss configuration of the various areas of Tally. Tally comes with default settings that are usable right away. However, behavioral changes are often required in live situations. You will be told of these settings but will not be asked to carry them out in a classroom environment. Armed with the knowledge, you will know what configuration to choose in your companies. Try them out! 

Since Tally is continually upgraded, new configuration settings that are not covered here may be introduced. However, once the concepts are clear, you will be able to cope with them.

Before starting work on the company, it is advisable to configure it by pressing F12 button at the end of the button bar, which will bring up the following screen:

General

It caters to country specific requirements and basic settings.

Numeric Symbols

You can set number styles. Defaults are also given. You may change them by overwriting. For example change negative sign from (-) to only ( ). Usually, Defaults are retained.

Accts/Inv Configuration

This gives control over what details should appear in the masters over and above those provided as default. This is available in the Accounts and Inventory Master screens through the F12 button and can be modified according to the needs at any time.

These have been discussed in detail in the relevant masters chapters.

Voucher Entry

Configure different items and behaviour of your voucher entry screen. The screen will be filled up with varying details as specified here.

Other features of convenience, e.g., Use Payment/Receipt Vouchers as Contra vouchers can be activated here to effect transactions for funds transfer. By design, Tally allows such transactions only through Contra Vouchers.

Likewise, you are not permitted to use Journal Vouchers to be used for cash or bank transactions. However, recognising exceptional needs, you can override that restriction by activating the facility here.

These are defaults and should be changed if required. Please note that these are questions asked of you and you need Yes to activate the facility and No to deactivate it.

invoice/Orders Entry

Configure details for invoices, sales and purchase order entry.

Again, the options are in the form of questions and you need to state Yes or No to them. For India/Asia, the options would automatically use Excise instead of lntrastat provided you have set your General Configuration accordingly.

They have also been explained in the relevant invoice entry sections.

In Tally, printing does not need to be taught! One has to explore it. Again, you will not be required to print anything in the unit. Instead, we will simply examine the different issues involved and how to get to print a desired report quickly and easily.

Basically, there are two areas in printing:-

You can print all that you display on screen. Printing through the Printing menu.

Both will yield the same output, though display and print is more flexible where you can see on screen the details required. You may bring up extra columns of information and print which you cannot do when printing from the Printing menu.

Display and Print !

You can obtain a printed version of the screen you are currently displaying by selecting Print from the top of the button bar menu. This brings up new button bar options and the Print Configuration screen for the report, which asks Print? Yes or No. If you select Yes, the report will be printed using the options specified on the screen. If you select No, you can change the options before printing.

There are two types of print configuration options:

Common printing options

Common printing options affect the printing of all reports and are changed by selecting the appropriate button from the button bar:

Titling: To change the title of the report.

Page Nos.: To specify the starting page number and page number range.

Pre-printed / Plain Paper: Toggle to make the selection.

Quick Format/ Neat Format: Toggle between quick (draft) and neat (standard) formats.

With Colour: This option is only relevant if you have a colour printer.

Copies: To specify the number of pages to be printed.

Printer: To change the printer. This also displays the default paper size that you have set for the printer.

Dynamic - Report specific options

If there are report specific options available for the report, they are displayed in a sub-screen when you

select to print it. You are permitted to change various options before you finally print.

Notice the Standard Options in the button bar on the right hand side. The specific options for printing the Balance Sheet appears in the sub-screen.

General Printing Configuration

Just as you would configure entry screens to enable certain information to appear/disappear from the screen, you would probably need to configure the printed outputs according to the needs of your company. Again, default settings are often enough for a company but usually need to be reset. Reset them simply by appropriately answering the questions put.

We shall now see how to configure Tally to give desired reports.

From the Gateway of Tally, select F12:Configuration. Then select Printing. You can configure only documents, i.e., vouchers, invoices and statements but not books and registers. Books and registers configuration is dynamic, i.e., Report specific.

Voucher Printing Configuration

To configure voucher layouts for print output. Printing of vouchers, invoices and statements are configurable through this menu.

General

This configuration is applicable for all print reports.

Print Date & Time of Report

This option enables printing of system date and time on each report. (Note:- vouchers, including invoices, are not reports). These are printed on the right top corner of the report as a control mechanism. It should not be confused with the date range of the report.

Quick Format

Tally prints in two formats - Neat and Quick.

Neat printing takes advantage of fonts of the printer and is the default. It also compresses long data like long names and amounts and auto-fits them according to space.

Quick printing is suitable for Dot Matrix printers where speed is an issue. Hence, quick printing does not print fancy fonts. The, auto-fit facility is, thus, not possible in quick printing. Therefore, it will truncate data longer than the allotted space. To prevent this, set Yes for the two questions under Quick Format.

Payment/Receipt/journal Vouchers, Credit Note/Debit Note

Configure the dimensions and details to print.

Though the above options pertain to Payment Vouchers, those for other vouchers are similar.

Sales Invoice, Delivery Note and Sales Order/Quotation

Printing configuration of all sales vouchers like invoices, Delivery notes and Sales Orders are accessible through Sales Transactions under Printing menu. Each transaction type is separately configurable and selectable from the sub-menu.

The configuration screens for each of the above follow:

This is the configuration for the Tally invoice. Change as necessary.

Details of the above configuration options have been discussed in the chapter on invoice Entry. These can be, however, set now or later as necessary. As usual, the configuration can be amended even if set.

Delivery Note

Delivery Note appears very similar to Invoices. However, fields like rate and amount may be required by some companies to be printed out on Delivery Notes. Others might not wish it. Hence, select the options as relevant to your company.

Sales Order/Quotation

Print sales orders and quotations as you want by configuring the following:

Sales Orders, if marked 'Optional', during voucher entry, are printed as Quotations.

Purchase Voucher/Invoice and Purchase Order

A surprising option to print purchase voucher and purchase invoices! There has been a need to print these firstly to maintain continuity in voucher numbers and, secondly to provide a document in case the supplier does not. Purchase Orders should, of course, be printed and sent to suppliers. To configure these, select Purchase Transactions under Printing.

Purchase Voucher/invoice

Purchase Orders

Purchase Orders that may be printed and sent to suppliers.

Reminder Letters

Two paragraphs have been already provided which can be used as themselves or modified or extended. To view the reminder letter, simply print one out. of course, you might want to make subtle changes thereafter. You may, as usual.

The two paragraphs are followed by the account of the customer. Ledger and outstanding details with Age Analysis of pending invoices serve as strong reminders to pay promptly.

Confirmation statements

Confirmation Statements are not the same as Reminder Letters. These serve to confirm the account

balances with customers, suppliers, lenders and borrowers. Their use is most at period ends, but can be produced for any period, at anytime. You may change the text as per your requirements.

Key Combinations

Key Combination

Function

ENTER To accept information typed into a field.To accept a voucher or master.  To get a report with further details of an item in a report.

ESC To remove what has been typed into a field.To exit a screen.  To indicate you do not want to accept a voucher or master.

CTRL + A To accept a form - wherever you use this key combination, the screen or report will be accepted as it is on the screen.

CTRL + Q To abandon a form - wherever you use this key combination, it quits the screen without making any changes to it.

ALT + C To create a master at a voucher screen.When working within an amount field, press ALT + C to activate the calculator.

ALT + D To delete a voucher.To delete a master.

ALT + 1 To Insert a voucher - available in Ledger Vouchers in Display Screen.

ALT + A To Add a voucher - available in Ledger Vouchers in Display Screen.

ALT + 2 To duplicate a voucher - available in Ledger Vouchers in Display Screen.

ALT + X To cancel a voucher - available in Ledger Vouchers in Display Screen.

SHIFT + ENTER To explode a line into its details - available Display Screens.

CTRL + ENTER To alter a master while making an entry or viewing a report.

ALT + R To remove a line in a report - available in Display Screen.

ALT + S To bring back a line you removed using ALT + R - available in Display Screen.

Congratulations! You have successfully completed the Tally course. You are now equipped to work on Tally efficiently with the ability to take the best of all that Tally offers.

Do remember, however, that you need to work with Tally. Tally is constantly being incorporated with new features and capabilities. The more you explore it, the better will your grasp of this amazing software be.

Now, Go and Succeed !

How to work on Tally without mouse : Keyboard commands for Tally and Windows

Have you ever imagined working on computer without mouse. Or what would you do when your mouse is dead. You would find it very difficult to finish your work. Fortunately this thing is not that much difficult in Tally. The reason being tally has all keyboard command for all its actions. More over it has a legacy from 4.5 which was a DOS based program the Keyboard commands are carried from that version and not yet changed (luckily good for us).

If your mouse is not functioning then for reaching to tally you have to know few keyboard commands for windows and windows explorer. There are several ways but the quickest way is to press the windows flag key + R and type the address of tally folder e.g. c:\tally9\

tally9.exe etc. Whenever you would press the first letter of the drive it would show all contents of that drive, just select the folder by pressing the down arrow key and reach the exact tally exe file and press enter. Alternatively you can select any item on desktop b repeatedly pressing the Tab key. When any folder on desktop is selected the you can move to tally shortcut icon by arrow keys.Alternatively you can reach through start menu also. You can find some windows shortcut keys on this page on Computer Hope.

After reaching to to Tally you can find which command you have to give by looking around on Tally panel. Hot keys are defined in four different ways in Tally.1. They are in red color in menu items. By pressing them you would get the desired menu or screen. Pressing 'B' at Gateway of Tally would bring to balance sheet2. Another keyboard command are with function keys like F(n) in top panel or in buttons in side bar. these commands can be invoked by pressing the relevant function key. e.g. F12= Configuration

3. Hot function key with Under line can be accessed by pressing Alt+F(n) keys. e.g. Alt+F12 = Range4. Hot function keys with Double Underline can be accessed by pressing Ctrl+ F(n) key. Ctrl+F12 = Value5. Except this there are certain shortcuts which are always applicable and of great use. e.g. Alt+C would create master

Here is the list of interesting shortcuts about Tally

Keys & Functions

ALT + 2To Duplicate a voucher

ALT + A

To Add a voucherTo Alter the column in columnar report

ALT + CTo 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)

To access Auto Value Calculator in the amount field during voucher entry

ALT + DTo delete a voucherTo delete a masterTo delete a column in any columnar report

ALT + ETo export the report in ASCII, HTML OR XML format

ALT + ITo insert a voucherTo toggle between Item and Accounting invoice

ALT + NTo view the report in automatic columns

ALT + PTo print the report

ALT + RTo remove a line in a report

ALT + STo bring back a line you removed using ALT + R

ALT + UTo retrieve the last line which is deleted using Alt + R

ALT + WTo view the Tally Web browser.

ALT + XTo cancel a voucher in Day Book/List of Vouchers

ALT + YTo Register Tally

CTRL + ATo accept a form – wherever you use this key combination, that screen or report gets accepted as it is.

CTRL + ALT + BTo check the Company Statutory details

CTRL + GTo select the Group

Ctrl + Alt + ITo import statutory masters

CTRL + QTo abandon a form – wherever you use this key combination, it quits that screen without making any changes to it.

CTRL + RTo repeat narration in the same voucher type

CTRL + Alt + RRewrite data for a Company