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OPTIONAL VOUCHER

This is another non-accounting voucher. However, it differs from the Memo voucher in that it is not a separate voucher type. You mark an existing voucher, (e.g., a payment voucher or a receipt voucher) as ‘Optional’. Press CTRL+L or click on the button. This button toggles with ‘Regular’. By marking it ‘Optional’ the voucher does not get posted anywhere but remains in the have the optional voucher. View them from the Day book as well.

UNCONVENTIONAL VOUCHERS

Memo voucher:-

            This is non-accounting voucher and the entries made using it will not affect your accounts. That is, Tally does not post these entries to ledgers but stores them in a separate “memo Register”. You can alter and convert a memo voucher into a regular voucher when you decide to bring the entry into your books. View all optional vouchers through Displayà Exception Reports à Optional Vouchers. View them from the day book as well.

Some uses for Memo vouchers:

Making suspense payments

For example, the company gives an employee cash to buy office supplies, the exact nature and cost of which are unknown. You could enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash. However, a simpler way is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when known.

Vouchers not verified at the time of entry.

It sometimes happens that you do not understand the details of a voucher you are entering. Enter it as a memo voucher and amend it when you get the details.

Items given on approval

You will normally only enter completed sales into the books. Suppose items are given “on approval”. You can track them with a Memo voucher and convert it into a proper sales voucher, or delete the Memo voucher, depending on the outcome.

Reminder service

            You can enter a memo voucher for a transaction that will take place in the future and get Tally to remind you about it one day prior to the date. For example, insurance premiums due, taxes due, 

BUDGET

 In Tally budgets can be set for various income and expenses accounts and variance reports can be generated in the following manner.

1. Enter “Yes” at maintain budgets and control columns in the company features of tally.

2. Select budgets from Account Info

3. Select create and enter the name of the budget Eg. Traveling expenses or advertisement expenses.

4. Enter the period, which may be monthly budgets or quarterly or yearly budgets.

CLOSING AND OPENING OF BOOKS FOR THE NEW FINANCIAL YEAR

When the current financial year comes to an end and the new financial year starts the user should set up fresh set of books for the new financial year in the following manner.

            Changing the period by clicking or Alt+F2 key to the new financial year Eg.1.4.09 to 31.3.10 the system automatically does the following tasks.

1. Starts a fresh set of books

2. Carry forwards accounts balances for asset and liabilities account

3. Carry forward items stock.

            The user need not create ledger a/c. stock items, or anything setup while closing the various features of Tally like cost centers multi currency. Multiple godowns etc. He can straight away the record the transactions using voucher entries. The user can jump from one accounting year to another simply by changing the period.

Group company accounts and consolidation of reports

         In tally group company accounts can be created with member companies under it for consolidation of various reports like trading A/c, P&L A/c Balance Sheet, Stock reports etc.

Group companies may be formed with existing companies and also by creating new companies in the following manner.

1. Create a company keep open its books of accounts and create another company in this manner all the member companies should be created.

2. Even group companies may be formed with existing companies. In this case open the member companies books simultaneously.

3. The user can operate the accounts of member companies i.e. create ledger accounts, stock items, record transactions independently just like any other individual company.

4. The Member company reports will show the results as usual.

Procedure to create a Group company:.

1. Keep open the member companies.

2. Press Alt+F3 keys at the gateway of tally

3. Select create group company option from the company info menu.

4. Enter the name of the group company. It’s income tax and sales tax numbers

5. At the members column, select the member companies whose reports are to be consolidated.

BANK RECONCILIATION STATEMENT

In Tally BRS can be prepared in the following manner.

1. Open the bank ledger account by selecting the following options.

Gateway of tally àDisplay à Account Books à Cash or bank books.

  

1. Select the bank account which is to be reconciled. The bank statement or pass book should be kept ready such period for which reconciliation is to be made. Eg.1.4.09 to 30.6.09 .

2. Click reconcile button. Now the new “bank date” column will be added to the bank statement.

3. Verify whether each entry is appearing in the bank statement or not. If it appears enter the date as per bank statement if it does not appear, skip the bank date column.

4. For such transactions which are accounted by bank and not accounted by the user company, such as bank charges, locker rent, insurance, interest etc. Make appropriate entries in voucher entry before starting the reconciliation.

            After the above process, the balance as per the bank column in tally should be equal to the actual closing balance as per bank statement.

            When reconciliation is made for the next accounting period repeat the above process now entries not reconciled in the previous period will be displayed along with entries recorded in the current period.

MAINTAN BILL WISE DETAILS

This feature in Tally maintains details of all pending credit bills of customers and suppliers. The various details are.

a) Original date of each bill b) due date of each bill c) adjusted amount against each bill d) pending amount of each bill e) no. of overdue days.

            At the time of raising the invoice terms and conditions of sale and payment will be settled with the customer. When there are pending bills from a customer and when he makes payment this amount should be adjusted against the pending bills according to the terms and conditions settled with the customer.

Procedure:-  

1. Active this feature from the accounting features of tally

2. While recording a purchase or sale or receipt or payment transaction, after selecting the party account and entering the amount “Bill wise details screen” will be displayed here the following information should be entered.

A. Advance:-  Select this method of adjustment when the customer pays advance before delivery of goods.

B. New Reference :- Select this method of adjustment in case of a fresh sale or purchase transaction without advance.

C. Against reference:  Select this method of adjustment when the customer pays any amount and when there are pending credit bills. Now a list of pending bills from this customer will be displayed select the bill to be adjusted and enter the amount of adjustment.

D. On Account: Select this method of adjustment when details of pending bills are not available and there is outstanding balance in a customers A/c.

3. Enter the number of credit days the system will calculate the due date.

4. Enter the amount.

            This feature can also be used for maintaining details of pending purchase bills of the suppliers.

Generating details of pending bills:-

Gateway of tally à Display à Statements of accounts out standing à Receivables / Payables.

Age wise report of pending bills showing number of days as column headings may also be generated by clicking age wise button and entering the no days to appear as column headings.

For Eg. 0-30 days, 31-60 days, 61-90 days,90-120 days, more than 120 days.

            The above report is useful for sending periodical statements to the customers showing the details of pending bills with suitable warnings.

DEBIT NOTE AND CREDIT NOTE

These two voucher types should be activated from the accounting features of tally. All the entries recorded in the account books should be supported by some documentary evidence like invoices, bills, vouchers, receipts etc. for some entries there may not be any documentary proof. In such cases Debit Note and Credit Note should be used to record them. They are prepared in duplicating on pre printed forms. One copy is sent to the customer for his records and the other copy retained for our recorded.

Credit Note:- This voucher type is used to record following typed of transactions.

1. Sales returns settled in cash or book adjustments.
2. When discount or incentives are given to the customers.
3. To adjust any excess rates charged in previous invoices
4. To record any debit notes received from the suppliers

Debit Note:- This voucher type is used to record following types of transactions.

a.       To Record purchases returns

b.      When discount or incentives are received from the vendors.

c.       To adjust any excess rates charged in previous invoices.

d.      To record any credit notes received from the suppliers.

STOCK JOURNAL: Manufacturing Units

STOCK JOURNAL:            Manufacturing Units

            This voucher type is used to record issues of raw materials to the production department. Production of finished goods, theft or pilferage of raw materials or finished goods, return of unutilized raw materials from the production department to the store or godown.

1. Issue of raw material from godown or stores is recorded under source column.

2. The production of finished goods is recording under destination column. The issues and productions are recorded by entering the following details.

a) Name of the item. b) Quantity c) Rate d) Amount.

3. The rate of raw material issued will be the average purchase cost which will be automatically entered by the system.

4. The quantity of finished goods will be based on actual physical counting or wieghment at the end of each shift. The cost of finished goods will be based on the cost sheets maintained in the production department either manually or buy using some other application software. This can also be calculated in tally by altering the “Stock journal” voucher type to “Manufacturing journal”. The selling rate can also be calculated by adding the profit margin.

5. The theft of raw material or finished goods are recorded under source column.

6. The return of raw material from the production process to the store or godown are recorded under under destination column.

7. The transfer of materials from one godown to another will be recorded under both sides i.e source and destination in two separate vouchers.

            All the entries recorded in the stock journal will be reflected in the stock summary, trading A/c, balance sheet etc.

Sales (F8)

Sales (F8) :- This voucher type is used to record cash sales or credit sales or with in state sales or  outside state sales. When the user selects sales A/c against the credit symbol the system automatically displays inventory allocations screen (inventory voucher) where the user should enter the following stock details.

1. Name of the items 2. Godown address (when multiple godowns are maintain).             3. Quantity. 4. Rate. 5. Amount.

            The system updates the stock records basing on these values. A sales transaction can also be recorded as an invoice which can be printed in any number of copies.

6. Purchases (F9) :- This voucher type is used to record cash purchases or credit purchases or with in state purchases or out of state purchases. In this voucher type when the user selects purchase account against the debit symbol, the system automatically displays inventory allocations screen where all the stock details are to be entered.

Journal (F7)

4. Journal (F7) :- This voucher type is used to record transactions in which the following two conditions are satisfied.

1. In such transaction cash or bank A/c should not be involved.

2. In such transactions there should be no movement of stock.

            In this voucher type all the ledger accounts created in accounts info will be displayed both at the debit and credit columns. So if any transaction could not be recorded in other voucher types it can recorded in journal. Exception: Sales returns should not be recorded on journal.

Display of Ledger Accounts

Gateway of tally à Display à Accounts Books à Ledgers.

            Select the accounts and press enter key. Now month wise total debits and credits with closing balances will be displayed. To generate ledger A/c for a particular period click period tab and enter the opening and closing dates.

Display of Day Book

Display of Day Book:-

Gateway of tallyà Display à Day Book.

            To generate day book for a particular period click period tab and enter the period. For display additional details like narrations, inventory details select from the configuration of tally (F12).

Receipt (F6)

3. Receipt (F6) :- This voucher type is used to record cash receipts through any type of bank instruments like cheques, DD’s TT’s LCS etc. The receipts may be from customers or borrowing of loans or sale of any asset or any other incomes like interest or dividends.

            In this voucher type either cash or bank A/c should be debited other wise the system will display an error message.

Exception:-  Cash sales should not be recorded using this voucher type.

            Post – dated cheque receipts may be recorded giving the maturity date of cheque and clicking post-dated button. On the maturity date after presenting the cheque with the bank for collection change the status of the transaction to “Current” position and save it.

Payments (F5)

. Payments (F5):- This voucher type is used to record cash payments or payments made through any type of bank instruments like Cheques, Demand Drafts, Telegraphic Transfers, letter of credits, bankers cheques etc. The payment may be made to the suppliers against outstanding balance or to buy any assets or to meet any expenses like salaries or rent or to repay any loans etc.

                        In this voucher type either cash or bank A/c Should be credited otherwise the system will display as error message. Exception: Cash purchases should not be recorded using this voucher type.

            Post-dated cheque payments may also be recorded by clickng post-dated button and giving a future date which is the maturity date of cheque. On the maturity date the status of these transactions should be changed from post-dated to “current”. Only by this action the accounts involved in the transaction will be posted.

Contra (F4)

1. Contra (F4):- This voucher type is used to record the following types of transactions.               A. Deposits of cash into bank accounts.

B. Withdrawals of cash from bank accounts for business use.

C. Transfer of funds from one bank A/c to another bank A/c.

D. Transfer of cash form cash A/c to Petty Cash A/c.

VOUCHER ENTRY

                                     
The various business transactions like purchases, sales, receipts, payments, other stock adjustments are recorded using voucher entry feature from the gateway of tally. Once transactions are recorded the system automatically makes ledger postings, updates various final reports like Trail Balance, Trading A/c, P&L a/c and Balance sheet and other stock reports behind the screen. Before recording the transactions all the ledger accounts and stock items should be created by the user.

Voucher Types:- Depending on the nature of transaction different voucher types should be used to record them.

F4: Contra

F5: Payment

F6: Receipt

F7; Journal

F8: Sales

F9: Purchase

F8: Credit Note

F9: Debit Note

F10: Rev.jrnl

F10: Memos

Entering stock details while recording purchase and sales

                                       
At the time of recording purchases and sales transactions, when the user selects purchases or sales account from the list of ledger accounts the system automatically displays inventory allocations screen where the user should enter the following stock details.

1. Name of the item 2. Godown address (When there are multiple godowns) 3. Quantity. 4. Rate. 5. Amount. System will take these values and updates the stock records.

Display of Stock Position:-

 Gateway of tally à Stock Summary.

            Now group wise summary will be displayed. For item wise summary select that group and press enter, monthly purchases and sales analysis will be displayed. For purchase and sales transactions of a particular item, select that month and press enter key.

Creation of Stock Items

                                   

Now the actual stock items should be created by selecting the following.

Gateway of tally -->Inventory Info --> Stock items --> Single or Multiple Groups--> Create.

            Enter the name of the item and select its groups and the unit of measurement. Enter the opening balance if any, the stock item creation screen may be configured (F12key) to enter additional details like part numbers, description, alternate units, standard rates, costing and market valuation methods. i.e. LIFO or FIFO or average cost etc.

Creation of Stock Groups

                                                 
When the user maintains different varieties of items. Then stock groups may be created to classify between different varieties. Eg. An electronic goods dealer may create groups like1. Electrical 2. Electronics. The following option will display the stock group screen.

Gateway of tally--> Inventory Info --> Stock Groups--> Single or Multiple Groups--> Create.

These groups may be create as primary groups or sub-groups.

Creation of units of measurements

                                 

Units of measurement at the units in which stock item is measured ex. Kgs., Tons, Nos, sets, reems etc., A unit may be created in the following manner.

Gateway of tally-->Inventory Info--> Units of measurement--> Crate.

Enter the symbol of the unit eg. Kgs tons etc.,

            Compound units like 1 ton of 1000kgs may also be created enter the formal name and the number of decimal places if any. Alternative units like bags, boxes, cases etc. May also be created when the packaging unit changes from the base unit.

Creation of Stock Items

                                                 

To maintain inventory in tally  the user should  Create all stock items in which the company makes purchases and sales transactions before recording purchase and sales or other material adjustments. Ex. An electronic goods dealer should create items like washing machines. Vacuum cleaners etc. a stock item may be created in the following three steps.

Creation of ledger accounts while recording transactions

                                 

Creation of ledger accounts while recording transactions:- At the time of voucher entry if the user encounters a new account which in the list of ledger then such A/c may be created by Pressing ALT+C key simultaneously. These keys will bring up the ledger creation screen directly.

Deleting of Ledger Accounts

                                     

Deleting of Ledger Accounts:- Unwanted ledger accounts may be deleted by the user by selecting the following menu options.

Gateway of tally--> Accounts Info --> Single or Multiple Ledgers--> Alter.

Select the account which is to be deleted and press ALT+D key simultaneously if such account is previously used to record any transaction then it cannot be deleted.

Alteration of Ledger Accounts

                                     

Alteration of Ledger Accounts:- The various details of account masters like groups, address, registration numbers may be altered by selecting the following options.

Path:- Gateway of tally --> Accounts info-->Single or Multiple Ledgers --> Alter.

            Select the account whose details are to be altered and make necessary changes. The group of a ledger account may be altered even after recording the transactions.

Display of Ledger Accounts

                                     
Display of Ledger Accounts:- The various details of a ledger accounts like it’s group, Opening balance, address, registration numbers can be displayed by selecting the following options.

Path:- Gateway of tallyà Accounts info à Single or Multiple Ledgers à Display

            From the list of accounts select the account whose record is to be displayed and press enter key. All the ledger A/c’s will be sorted in alphabetical order, to view all account masters display one ledger A/c and use page up and Page down keys from the key board.

Creating of Ledger Accounts

                                         

Before recording various business transactions like purchases, sales, receipts, payments the user should create all the ledger accounts involved in the business. The record of each ledger A/c is called an accounts master. Once ledger accounts are created and saved they may be used to record the transactions not only during the current financial year but also in future years. The following options selected step would bring up the ledger creation screen.

Path: Gate way of tally à Accounts info à LedgersàSingle or Multiple Ledgers à Create.

  

            Enter the name of the ledger account select it’s group basing on the location of the account in final reports like trading A/c, P&L A/c B/S and enter the opening balance if any, for customer and supplier A/c’s enter their address, sales tax, income tax recitation numbers, enter the rate of calculation for duties & taxes accounts. For bank accounts enter the effective date of reconciliation, for foreign party accounts enter the currency symbol in which such accounts is to be maintained.

PRODUCTS OF TALLY

There are 3 Products in Tally which are:

1. Tally Bronze: This is a single user edition with limited features.
2. Tally Silver: This is a single user edition with all features like budgets, Multy currency, cost centers etc.
3. Tally Gold: This is a multy-user edition useful in networking environment with all features. With single installation of tally we can maintain multiple company accounts.

History of Tally

The Late Shri S. S. Goenka, founder of the company Peutronics Pvt. Ltd. set up Tally's software business in 1986. His able mentoring of his son Bharat resulted in the creation of software that would simplify the process of financial accounting and inventory. Determined to create and develop a simple business accounting software, Bharat spent months in the research and development of path breaking technologies, which would assist him in achieving his goals. His dedication and focus led to the development of a commercial product. It was at this stage that Peutronics Pvt. Ltd.

tally erp 9 & Stages of Tally

tally information

https://www.youtube.com/watch?v=x97M6CRLMws

LEADGER GROUPS IN TALLY

1. Bank Accounts:- This is a sub group under current assets create all bank current accounts under this group Ex. SBI current A/c, Canara Bank A/c etc., In case of sole proprietary concerns also create bank savings accounts under this group.

2. Bank OD Accounts:- This is a sub group under Loans (Liabilities). It has an Alias name called Bank OCC accounts, create all loan A/c borrowed by the company for the purpose of working capital under this group. Ex. SBI OD A/c, AB OCC A/c

3. Branch Divisions:- This is primary group. When we are maintaining accounts of Head Office which has various Branches of Divisions under it, create such branch or division accounts under this group Ex. Vijayawada branch A/c, Hyderabad H.O A/c etc.,

4. Capital Account:- This is a primary group create all types of Capital Accounts in this group irrespective of the legal status of the company i.e whether it may be proprietorship concern or partnership firm or a Ltd co Also create owners personal drawings Accounts under this group.

Ex. Ravi’s Capital A/c (Proprietor)

            Radha Capital A/c (Partner).

5. Cash – in – hand:- This is a subgroup under current assets, there is already one system defined cash a/c under this group. So need not to be create Cash A/c under this group. If necessary the user should create petty cash A/c under this group.

6. Current Assets:- This is Primary group there are six system defined subgroups under this group, they are 1. Stock in hand 2.Deposits. 3. Loans & Advances. 4. Sundry debtors. 5. Cash – in – hand. 6. Bank accounts.

            While creating any current asset A/c the user should checkup whether it can be placed under any of the subgroups. If there is no related subgroup then it can be kept directly under current assets or separate subgroups may be created for such accounts when they are multiple in number.

7. Current Liabilities:- This  is a primary group. There are three system defined subgroups under group. They are 1.Duties & taxes 2. Provisions 3. Sundry Creditors.

            While creating any current liability a/c the user should check – up whether it can be placed under any of the subgroups. If there is no related subgroups then it can be kept directly under current liabilities or a separate subgroup may be created for such A/c under current liabilities when they are multiple in number.

8. Deposits:- This is a subgroup under current assets. Create all deposit accounts under this group Ex. Telephone Deposit A/c, Electricity deposit A/c, Showroom deposit A/c.

9. Direct Expenses:- This is a primary group. Create all expenses accounts that are to be debited to trading account under this group. Ex. Wages A/c, Unloading charges a/c, Carriage inward. Etc.,

1. Direct Incomes:- This is a primary group. Create all income all accounts that are to credited to treading A/c under this group ex. Insurance claim recovery, Sale of Scrap.

To Credit any income A/c to trading A/c the following two conditions should be satisfied.

1. The company should carry on trading activity ie. Purchase and sale of goods.
2. Such income account should be related to the main business activity of the company.

Ex. Sale of empty barrels, sale of scrap, sale of gunny bags, sale of by-products.

2. Duties & Taxes:- This is a sub group under current liabilities create all duties & taxes A/c’s that are collected from customers and payable to various government under this group ex. Sales tax collection / payable A/c Excise duty payable A/c etc.,
3. Fixed Assets:- This is a Primary group. Create all assets accounts that are purchased with an intention to use them in business and not with an intention to resell them at a profit under this group ex. Furniture, land & buildings etc.
4. Indirect Expenses:- This is primary group. Create all expense A/c’s that are to be debited to profit & Loss A/c under this group. Ex. Salaries, Telephone expenses, electricity expenses, interest, depreciation etc.
5. Investments:- This is a primary group. Create all asset A/c’s that satisfy the following two conditions under this group.

1. Such asset a/c can be resold in the market at any point of time.
2. Such asset A/c should generate income by way of interest or dividends Ex. Equity shares, NSC Bonds etc.

6. Loans and Advances (Asset):- This is a subgroup under current asset create all loans & Advances accounts that are given by the company to staff members or outsiders under this group Ex. Loan to accountant loan to salesman etc.,
7. Loans (Liabilities):- This is a Primary group. There are three system defined subgroups under this group they are 1.Bank O.D a/c 2. Secured loans 3.Unsecured Loan accounts directly under this group.
8. Miscellaneous Expenses (asset):- This is a primary group. Create all expense accounts that are not written off to P&L A/c the same year in which they are incurred under this group. Such expenditure is written –off proportionally over a number of years Ex. Preliminary expenses lump sum amount paid for obtaining copy right or technical know how.
9. Provisions:- This is a subgroup under current liabilities. Create all provision accounts set aside from profits to meet any unpaid expenditure of the current year of unforeseen losses of future years under this group. Ex. Provision for sales tax. Provision for bad debts etc.
10. Purchase Account:- This is a primary group, Create at least one purchase A/c under this group to record the purchase transactions. If necessary the user create following types of purchase accounts.

1. Cash purchases with in state.
2. Credit purchases with in state.
3. Cash purchases out side state.
4. Credit purchases out side state.

Also create purchase returns A/c under this group. When the user company maintains accounts and inventory records in tally then while recording the purchase voucher the system automatically displays. Inventory allocations screen (Inventory voucher), where the user should enter the following details.

1. Name of the item purchased 2. Quantity 3. Godown Address 4. Rate 5. Amount the system will take these values and updates the stock records.

11. Reserves and Surplus:- This is a subgroup under capital account. It has an alias name called retained earnings, create all reserve a/c’s set aside from profits for future development of business under this group ex. General reserve specific like Generator reserve A/c etc.
12. Sales Accounts:- This is a primary group, create at least one sales account under this group to record the sales transactions. If necessary the user may create the following types of sales accounts.

1. Cash sales with in state.
2. Credit Sales with in state.
3. Credit Sales out side State.

Also create sales returns A/c under this group, inventory allocations screen is linked with this group, where the user should enter all the stock details.

13. Secured Loans:- This is a subgroup under loans (liability) Create all loan A/c’s borrowed by the company against primary or collateral or both types of securities under this group. Ex. Term loan from SBI. Term loan from SFC, truck loan from apple finance corp.
14. Stock in hand:- This is a subgroup under current assets, when the user company maintains both accounts and inventory then there is no need to create stock A/c under this group. The system automatically displays opening, closing stock values basing on the stock details entered while recording purchase and sales transactions in the trading A/c and balance sheet.

In case the user company maintains only accounts and it has physical  stock in the business then a stock A/c should be created under this group and the opening and closing stock values and on 1^st April and 31^st March should be given by the user.

15. Sundry Creditors:- This is a subgroup under current liabilities create all supplier A/c’s of the company under this group. These accounts are also called vendor accounts or accounts payable accounts.
16. Sundry Debtors:- This is a subgroup under current assets create all customers A/c’s of the company under this group. These accounts are also called Accounts receivable accounts.
17. Suspense Account:- This is a primary group. Create all accounts where the actual amount involved in the transaction or the particular ledger A/c involved are not known temporarily under this group. Ex. Traveling Advance A/c  interest suspense A/c.
18. Unsecured Loans:- This is a subgroup under loan (liabilities). Create all loan A/c’s borrowed by the company without any security under this group. Ex. Loan from a friend or father etc.