With GST introduced by Government of India with effect

from April 2017

Bi-Lingual Book (English-Hindi)

TBALAJI PUBLICATION Triloki Complex, Infront of A.N. Jha Hostel,

Allahabad- 211002 Uttar Pradesh

Distributor: Shri Balaji Internet Cafe

Opposite A. N. Jha Hostel, University Road Allahabad

09415631990, 09450976411, 05322460211

E-Mail: tbalaji.pub@gmail.com, tbalaji.ald@gmail.com

TALLY. ERP 9 T Balaji II

DEDICATED TO LORD TIRUPATI BALAJI Revised and Updated Edition October 2016

Price:

260/-

ISBN: 978-81-927426-1-8

Book: Tally.ERP9

© Publishers

All rights reserved, no parts of this book shall be reproduced without prior permission. Any photocopying, recording or stealing contents from this book shall be liable to punishable offence and the dispute regarding any issue will be handled under Allahabad region only.

Although precautionshave been taken during preparation, the author and publisher will not be responsible for any error or losses. Questions given in question set are based on memory.

Preface

This book from T Balaji Publication is designed in bi-lingual pattern (Eng-Hin) what makes easy to understand a student and make understand someone as well as provide a comprehensive coverage among those students who they are at initial stage and not so long understanding the language of books being published now-a-days by most of Publishers.

Tally ERP 9 includes a number of statutory information like TDS, VAT, CST, Excise Duty, Service Tax and FBT. We also include Goods and Service Tax (GST) in the book introduced by Governenment of India with effect from April 2017. These taxes can be implemented in the book accounts for a company. Tally has been a great accounting software application which is designed to implement business solution ranging from a low scale business to high scale businesses. .

We thank to God to keep on eye all the time blessing us and thankful to parents and colleagues to appreciate our work to make this possible. We would like to thank specially to our mentor who supported all the way and compiled every line of this book.

Best of luck !!

Stay blessed !!

Author

P. K. Pandey Manish Shukla

Translated by

Vaibhava Mishra

TALLY. ERP 9 T Balaji III

Table of Content of Tally.ERP 9

Page No.

1 Introduction of Tally.ERP 9……………………………………………………………….............……………….. 1 1.0 Introduction…………………………………..............…………................................................................ 1 1.1 What is Tally ERP 9?………………………………………………....................................................... 1

1.2 Salient Features of Tally.ERP 9…………………………………………………………………..… 2 1.3 Enhancement in Tally.ERP 9…………………………………………………………........................ 3 1.4 System Requirements for installing Tally.ERP 9…………………………………..................... 6 1.4.1 System Requirements for Tally.ERP 9 Silver Edition (Single User)…….... 6 1.4.2 System Requirements for Tally.ERP 9 Gold Edition (Multi User)................ 7

1.4.3 Internet Requirements for Tally.ERP 9 Silver Edition (Single User)/

Gold Edition (Multi User) to use certain Feature................................................

7

1.5 Version history of Tally……………………………………………….................................................... 8

1.6 Installing TALLY.ERP 9…………………………………………………………………........................ 8 1.7 How to Open Tally.ERP 9…………………………………………………………………....................... 12 1.8 Screen Introduction of Tally……………………………………………………............................... 13

1.9 Quitting Tally.ERP 9……………………………………………………………….……............................ 16 2 Creation & Customization of Company………………………………………………………........... 17

2.0 Introduction of Company…………………………………………………………………...................... 17 2.1 Create Company………………………………………………………………............................................ 17

2.2 Select/Load a Company …………………………………………………………………........................ 20 2.3 Shut/Close Company …………………………………………………………………………................ 20 2.4 Creating Group Company…………………………………………....................................................... 21

2.5 Alter a Company………………………………………………………………........................................... 22

2.6 Delete a Company ……………………………………………………………………………………..…… 22 2.7 Backup…………………………………………………................................................................................. 23

2.8 Restore…………………………………………………………..……............................................................ 24

3 Masters, Accounting Masters, Bill Allocation......................................................................................... 25

3.0 Introduction of Masters..................................................................................................................... 25

3.1 Accounts Information (Accounts Master)................................................................................. 26

3.1.1 Groups Creation................................................................................................................. 26

3.1.2 Pre-defined Groups in Tally.ERP 9............................................................................ 27

3.1.3 Ledger Creation...................................................................................................... 30

3.1.4 Pre-defined Ledgers in Tally.ERP 9............................................................ 30

3.1.5 Ledger Alteration....................................................................................... ....................... 34 3.1.6 Ledger Deletion.................................................................................................................. 35

3.2 Trial Balance Report............................................................................................................................ 35 3.3 Balance Sheet Report.......................................................................................................................... 35

3.4 Opening Bill allocation....................................................................................................................... 36 3.5 Bill Allocation of Creditors............................................................................................................... 36

3.6 Effect of Bill by Bill feature on Voucher Entry/Transaction.............................................. 37

3.7 Assignment.............................................................................................................................................. 39 4 Voucher....................................................................................................................................................... 43

4.0 Introduction of Voucher.................................................................................................................... 43 4.1 Accounting Vouchers in Tally ERP 9............................................................................................ 44

4.1.1 Contra Voucher (F4)........................................................................................................ 44

4.1.2 Payment Voucher(F5)..................................................................................................... 46

4.1.3 Receipt Voucher (F6)................................................................................................ ...... 48

4.1.4 Journal Voucher (F7)...................................................................................................... 49

TALLY. ERP 9 T Balaji IV

4.1.5 Sales Voucher (F8)........................................................................................................... 50

4.1.6 Credit Note Voucher (Ctrl+F8).................................................................................. 51 4.1.7 Purchase Voucher (f9)................................................................................................... 51 4.1.8 Debit Note Voucher (Ctrl + F9).................................................................................. 52 4.2 Non-Accounting Voucher in Tally.ERP9.0................................................................................. 53 4.2.1 Reversing Journal Voucher (F10).............................................................................. 53 2.4.4 Memo Voucher (Ctrl + F10)........................................................................................ 54 4.2.3 Optional Voucher............................................................................................................... 54 4.2.4 Post-dated Vouchers........................................................................................................ 55

4.3 Creating a New Voucher Type......................................................................................................... 55

4.4 Altering Vouchers................................................................................................................................. 58

4.5 Entered Entry into the Bank Payment Voucher(New Voucher)...................................... 58

4.6 Components of Voucher Entry Screen......................................................................................... 58

5 Cost Centre & Cost Category................................................................................................................................... 63 5.0 Introduction of Cost Category & Cost Centre........................................................................... 63 5.1 Use of Cost Category & Cost Centre.............................................................................................. 63 5.2 Creating Single Cost Category......................................................................................................... 65 5.3 Creating Single Cost Centre............................................................................................................. 65 5.4 Voucher Entry for Allocate the Expense between Cost Centres ..................................... 67 5.5 Cost category Summary report...................................................................................................... 67 5.6 Pre-defined Cost Centre Allocation.............................................................................................. 67 5.7 Creating Multiple Cost Categories................................................................................................. 68 5.8 Creating Multiple Cost Centres....................................................................................................... 69 5.9 Purchase of Assets (Non Trading Item)..................................................................................... 71 5.10 Sale of Assets(Non Trading Item)................................................................................................. 72 5.11 Assignment 1.......................................................................................................................................... 74 5.11.1 Assignment 2..................................................................................................................... 74

6 Inventory Control....................................................................................................................................................... 75 6.0 Introduction of Inventory................................................................................................................. 75 6.1 Some important feature available in the Inventory module are...................................... 76

6.2 Company set up for Inventory...................................................................... 76

6.3 Inventory Information............................................................................................................................. 77

6.4 Stock Group............................................................................................................................................. 77

6.4.1 Creating Single Stock Groups...................................................................................... 78 6.4.2 Displaying Single Stock Groups................................................................................. 78 6.4.3 Altering Single Stock Groups....................................................................................... 78 6.4.4 Creating Multiple Stock Groups (Expert Usage)................................................. 78 6.4.5 Displaying Multiple Stock Groups.............................................................................. 79 6.4.6 Altering Multiple Stock Groups................................................................................... 79 6.5 Stock Category....................................................................................................................................... 80 6.5.1 Creating Single Stock Category................................................................................... 80 6.5.2 Displaying Single Stock Category............................................................................... 80 6.5.3 Altering Single Stock Category.................................................................................... 81 6.5.4 Deleting Single Stock Category.................................................................................... 81 6.5.5 Creating Multiple Stock Category............................................................................... 81 6.5.6 Displaying Multiple Stock Category.......................................................................... 81 6.5.7 Altering Multiple Stock Category............................................................................... 81 6.6 Godown..................................................................................................................................................... 81 6.6.1 Creating a Single Godown.............................................................................................. 82 6.6.2 Displaying a Godown....................................................................................................... 82 6.6.3 Altering a Godown........................................................................................................... 83

6.7 Units of Measurement........................................................................................................................

6.7.1 Creating Unit of Measure................................................................................ 83 84

6.7.2 Displaying a Units of Measure...................................................................... 85

TALLY. ERP 9 T Balaji V

6.7.3 Altering a Units of Measure............................................................................ 85

6.8 Stock Item................................................................................................................................................ 85 6.8.1 Creating Stock Item.......................................................................................................... 85 6.8.2 Displaying Stock Item ..................................................................................................... 87 6.8.3 Altering Stock Item........................................................................................................... 87 6.8.4 Deleting Stock Item...................................................................................... .................... 87 6.8.5 Creating Multiple Stock Items..................................................................................... 88 6.8.6 Displaying Multiple Stock Item................................................................................... 88 6.8.7 Altering Multiple Stock Items...................................................................................... 88 6.9 Check Stock Summary Report......................................................................................................... 88

7 Pure Inventory Voucher........................................................................................................................ 91 7.0 Introduction............................................................................................................................................ 91 7.1 Types of Inventory Vouchers.......................................................................................................... 91 7.1.1 Receipt Note Voucher..................................................................................................... 91 7.1.2 Rejections Out Voucher.................................................................................................. 92 7.1.3 Delivery Note Voucher.................................................................................................... 93 7.1.4 Rejections-In Voucher..................................................................................................... 94 7.1.5 Physical Stock Voucher................................................................................................... 96 7.1.6 Stock Journal....................................................................................................................... 96 7.2 Assignment.............................................................................................................................................. 100

8 Order Processing in Tally.ERP9............................................................................................................................ 101 8.0 Introduction............................................................................................................................................ 101 8.1 Implementation of Order Processing in Tally ERP 9 ............................................................ 101 8.2 Purchase order Processing............................................................................................................... 102 8.2.1 Purchase Order.................................................................................................................. 102 8.2.2 Receive and Store Goods(Receipt Note Alt+F9)................................................ 105 8.2.3 Purchase Bill for Goods............................................................................ ...................... 108 8.2.4 Reject Goods(Rejection Out)........................................................................................ 111 8.2.5 Debit Note or Purchase Return................................................................................... 112 8.2.6 Assignment.......................................................................................................................... 114 8.3 Sale Order Processing......................................................................................................................... 115 8.3.1 Sale Order............................................................................................................................. 116 8.3.2 Delivery Note...................................................................................................................... 120 8.3.3 Reject Goods........................................................................................................................ 124 8.3.4 Sale Bill for Goods............................................................................................................. 127 8.3.5 Credit Note or Sales Return.......................................................................................... 127 8.3.6 Assignment.......................................................................................................................... 135

9 Advanced Inventory in Master & Vouchers....……………………………………………................................. 137

9.0 Inventory Masters Configuration……...…………………………………………………................. 137 9.1 Advanced Entries in Master….................................................................................................................... 137 9.2 Stock Behaviour ……………………………………………………………………............................................ 137 9.2.1 Inventory Costing Method and Market Valuation Method............................ 138 9.2.2 Treat all Rejection Inward as scrap …………………………………………..... 140

9.3 Additional Features used in voucher Entry …………………………............................. 140

9.3.1 Zero Value voucher …………………………………………………………………............. 140 9.3.2 Actual Billed Quantity...................................................................................... ........................ 142 9.3.3 Separate Discount Column on Invoices ………………………................................. 142 9.3.4 Price List …………………………………………………………………………........................ 143 9.3.5 Credit limit ……………………………………………………………….................................. 145 9.3.6 Appropriation of Expenses with inventory …………………………….................. 145 9.3.7 Standard Rate ………………………………………...…….............................................. 146

9.3.8 Report of the above entry …………………………………………................................. 147 9.3.9 Additional Item description in Invoice Entry …………………………..... 150

9.3.10 Negative stock warning ……………………………………………........................... 151

9.3.11 Negative stock exclusion ……………………………………………………….......... 153

TALLY. ERP 9 T Balaji VI

9.3.12 Reorder Level ……………………………..………………………………..……................. 154

10 Voucher Class and Interest Calculation …………………………………………………………………... 157 10.0 Introduction of Voucher Classes ……………………………………………………………….... 157

10.1 Use of Voucher Class : Some of the uses of Voucher class are ……………....................... 157 10.2 Voucher Classes for Payment, Receipt and Contra Voucher............ 158

10.3 Payment Voucher Entry with classes ………………………..................................... 160 10.4 Purchase/ Sales Voucher Classes ………………………………………………………. 160 10.5 How to use Credit sale class in sale entry …………………………………….......... 164 10.6 How to implement the class ………………………………………................................... 165 10.7 Interest Calculation …………………………………………………………………………. 166 10.8 Interest against Party …………………………………………………………………….... 167 10.9 Charge Interest ………………………………………………………………………….......... 169

11 Manufacturing in Tally ,Bill of Material & Reports………………………….................................................. 173

11.0 Manufacturing in Tally ……………………………………………………………………....................... 173 11.1 Bill of Material........................................................................................................................................ 173 11.2 Configuration for Bill of Materials …………………………………………………….. 174 11.3 Manufacturing Journal Voucher Type creation …………………………............ 175 11.4 Manufacturing Journal Entry ………………………………………………………........ 176 11.4.1 Production Item Details in BOM ……………………………………………………….. 176 11.4.2 Consumption Item Details in BOM ……………………………………………………. 177 11.4.3 Bye Products Item Details in BOM …………………………………………………… 177 11.5 Production & Consumption Report …………………………………………………… 179 11.6 Production Analysis Report …………………………………………………………………………… 180 11.7 Production Report Configuration ……………………………………………………… 180 11.8 Cost Estimate ……………………………………………………………………….……..... 180

12 Budget, Data Maintenance, Accounts Confirmation & Import & Export Tally data.......... 181

12.0 Introduction of Budget……………………………………………………………………………............ 181 12.1 Multiple budgets................................................................................................................................... 181 12.1.1 Purpose of budgeting ……………………………………………………………………… 181 12.1.2 How to start budget in Tally …………………………………………………………..... 182 12.1.3 Budget Creation ……………………………………………………………………..……...... 183 12.1.4 Altering a Budget ………………………………………………………................................ 184 12.1.5 Deleting a Budget ………………………………………………………………………......... 184 12.2 Creating Scenario ……………………………………………………………………………………….... 185 12.3 Creating Currency ………………………………………………………………………………………… 187 12.4 Data Maintenance…………………………………………………………………..................................... 188 12.4.1 Security Control ………………………………………………………………….................... 188 12.4.2 Tally Audit …………………………………………………………………….…....................... 188 12.4.3 Implementation of Security Control and Tally Audit …………………….......... 189 12.4.4 Tally Vault …………………………………………………………………….…….................... 198 12.4.5 To Implement Tally Vault ………………………………………………………………..... 198 12.5 Account Confirmation ……………………………………………………………………………………. 200 12.6 Import and Export of Ledger ……………………………………………………..……...................... 201

13 Printing & FinancialReports ……………………………………………………....................................... 209 13.0 Introduction ……………………………………………………………………..…….................................. 209 13.1 Financial Reports in Tally.ERP 9………………………………………………………....................... 213 13.1.1 Financial Statements ……………………………………………………………….............. 213 13.1.2 Day Book ………………………………………………………………………………………… 214 13.1.3 Account books …………………………………………………………………………………. 214 13.1.4 Statement of Accounts ……………………………………………………………………… 215 13.2 Purchase Order ……………………………………………………………………………………………... 215 13.3 Proforma Invoice ………………………………………….................................................................. 216

13.4 Sales Order/ Quotation Printing ………………………………………………………...................... 217 13.5 Cheque printing …………………………………………………………………………………………….. 218

14 TAX,VAT,Inter state Purchase, Inter state Sales ……………………………………………………… 221

TALLY. ERP 9 T Balaji VII

14.0 Introduction of Tax………………………………………………………………...……............................ 221 14.1 Types of Tax ……………………………………………………………….……........................................... 221 14.2 Introduction of VAT…………………………………………………………………….............................. 222 14.3 Difference between VAT and Sales Tax ……………………………………………....................... 223 14.4 Advantages of VAT …………………………………………………………...……............................... 223

14.5 VAT Rates……………………………………………………………………….............................................. 224 14.6 VAT Terminology…………………………………………………………..……........................................ 224 14.7 Taxpayer’s Identification Number (TIN)……………………………………....................... 225

14.8 Tax Invoice ………………………………………………………………………………..……...................... 225 14.9 Retail Invoice ………………………………………………………..……............................................... 225

14.10 Dealer…………………………………………............................................................................................. 226

14.10.1 UnRegistered Dealer ………………………………………………………..…………..… 226 14.10.2 Registered Dealer………..………………………………..…………………....................... 226 14.11 Who is liable……………………..…………………………………..……………........................................ 227 14.12 VAT Records........................................................................................................................................... 227 14.13 Payment of VAT……………………………………………………..…………………………………..…... 227 14.14 Submission of Return……………………..…………………………………..………………………….. 227 14.15 Implemation of VAT in Tally.ERP9.…………………………………..………………………........... 228 14.15.1 Creating a Company........................................................................................................ 228 14.15.2 Processing Purchases & Sales Enteies.................................................................... 231 14.15.2.1 Taxable Purchase & Sales............................................................................................. 231

14.15.2.1.1 Purchases Transation with Multiple Items involving Different VAT Rate..............................................................................................................................................................

231

14.15.2.1.2 Purchase Return............................................................................................................ 239 14.15.2.1.3 Sales transation with Multiple Items involving Different VAT Rate....... 240 14.15.2.1.4 Adjustment of input Credit....................................................................................... 248 14.15.2.1.5 Payment of VAT.............................................................................................................. 249 14.16 MRP based Purchase........................................................................................................................... 251 14.17 MRP based Sales.................................................................................................................................. .. 252 14.18 Sales Returns ……………………………………………………………….............................................. 256

14.19 Purchase & Sale of Exempt Goods................................................................................ 259

14.19.1 Exempted Purchases...................................................................................... 259

14.19.2 Exempted Sales................................................................................................. 262

14.20 Purchase from Unregistered dealer ……………………..…………………………………..……... 264 14.21 Purchase from Outside India (Import)………………………………........................................... 266 14.22 Purchase of Capital Goods ……………………..…………………………………..………………........ 267 14.23 Reversal of Input Credit……………………..…………………………..………………………….......... 271 14.24 Goods Destroyed ……………………..…………………………………..…………................................. 273 14.25 Branch Transfer……………………..………………………………..………........................................... 275 14.26 Refund of Input VAT........................................................................................................................... 276 14.27 Reversal of Output VAT ……………………..…………………………………..………........................ 279 14.28 Inter-State Purchases & Sales...................................................................................................... .. 282 14.28.1 Inter-State Purchases Against Form C ……………….………………………...... 282 14.28.2 Interstate Purchases at Multiple CST Rates …………………………………… 286 14.28.3 Inter-State Sales Against Form C………..………..................................................... 291 14.28.4 Inter-State Sales at Multiple CST Rates………………………………………... 294

15 Service Tax……………………..……………………........................................................................................................ 297 15.0 Intoduction ……………………..………………........................................................................................ 297 15.1 Service Tax …………………….................................................................................................. 298 15.2 Implementation of Service Tax in Tally.ERP9……………………..…………………………...... 298 15.3 Expenses entries in the same company……………………..…................................................... 304 15.4 Service Tax Credit……………………..…………………………………..…………………...................... 309 15.5 Input Credit Adjustment Entry...................................................................................................... 309 15.6 Payment of Service Tax…………………..…………………………………......................................... 311

TALLY. ERP 9 T Balaji VIII

15.7 Service Tax Returns (ST-3)……………………..…………………………………................................ 315

16 TDS(TAX Deducted At Source).................................................................................................. ......... 317

16.0 Introduction……………………..…………………………………..…….................................................... 317 16.1 Features of TDS in Tally.ERP 9……………………..………………………………….......................... 318 16.2 Enabling TDS in Tally.ERP 9………………….…………………………………..................................... 318 16.3 Creating TDS Masters ……………………..…………………………………..………………………........ 320 16.4 Transaction involving TDS…………………………………………………………………………….... 322 16.5 Payment to Party……………………..…………………………………..………….................................. 325 16.6 Payment of TDS……………………..………………................................................................................ 327 16.7 Generating TDS Challan(ITNS 281)............................................................................................. 330 16.8 Statutory Info……………………..…………………………………..…………………………………........ 332 16.9 TDS Reports……………………..…………………………………..…………............................................ 333

17 TCS (Tax Collected At Source)……………………..…………………………………..…………………………….... 341 17.0 Introduction........................................................................................................................................ ... 341 17.1 Goods on which TCS is Applicable.............................……………………..……………….............. 341 17.2 Percentage of TCS on above Goods……………………..…………………………………..……..... 342 17.3 Facilities of TCS in Tally ERP 9……………………..…………………………………........................ 342 17.4 Company feature set up for TCS ……………………..…………………………………..…….......... 342 17.5 Challan Printing ……………………..………………………………….................................................... 346 17.6 TCS Reports……………………..…………….......................................................................................... 346

18 Payroll……………………..…………………………………..………………………........................................................... 349 18.0 Introduction ……………………..…………………………………..…………………………..................... 349 18.1 Features of Payroll ……………………..…………………………………..…………............................... 350

18.2 Benefits of using Tally. ERP 9 intergrated Payroll management software……… 350

18.3 Enabling Payroll in Tally.ERP 9……………………..…………………………………........................ 350 18.4 Creating Payroll Masters ……………………..…………………………………..……………............... 353 18.5 Payroll Voucher Types in Tally.ERP 9………………................................................................... 365 18.6 Print Pay Slip ……………………..…………………………………..……………………............................ 369 18.6.1 To print Multi Payroll slip………………………………………..……………………........ 370

18.7 Print Pay Sheet ……………………..…………………................................. 372

18.8 Salary Payment Advice ……………………..…………………………………..……………................ 373 18.9 Assignment ……………………..…………………………………..……………………............................ 373

19 Goods and Service Tax……………………..……………........................................................................................... 375 19.0 What is GST ……………………..…………………………………..…………………………….................. 375 19.1 Objective of GST……………………..…………………………………..………………............... 375

19.2 GST Bill in India ……………………..…………………………………..………………………................... 376 19.3 Salient features of the proposed GST system in India……………………............................. 377 19.4 GST Mechanism Figure……………………………………..………...................................................... 378 19.5 Advantages of GST Bill………………………………………………...………....................................... 378 19.6 For the Centre and the States …………………...…………............................................................. 379 19.7 For individuals and companies ………………………………………………………........................ 379 19.8 Expected benefits of GST………………………….……………………………..................................... 379 19.9 Challenges to smooth transition to GST regime…………………………................................. 380 19.10 Items exempted from GST………………...………………………………........................................... 380

20 Short Cut Key Command in Tally.ERP 9…………………………………...……………………............................ 383

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