CONFIGURATION TALLY - EBA

Notes 57 Pages

Bengaluru City University

Bachelor of Business Administration

Contributed by

Tabeed Malpani

M.VijayKumar
AsstProf
M.E.SInstitute ofManagement
UNITIV
CONFIGURATIONTALLY
CONFIGURINGTALLY(F12)
ConfigurationinTallyappliesforthecompany.Theyare
1)GENERAL:Ingeneralconfiguration,itcontainsthedetailsofCountry,
Stylesofnamesappearing,Numberconfiguration,tableconfiguration,
Import/Exportoptions.Thesearetheoptionswhichcanbeoperated
accordinglytotherequirement.
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2)NUMBERSYMBOL/NUMERICALSYMBOL:Thisoptionisonlyforthe
numberstylesandprefix/suffixtobeuseandsymbolsfordebit&credit
amounts.
3)ACCOUNTS/INVENTORYINFOMENU:thisoptionallowstheAccounts
andinventorytousetheaddressandcontactdetailsorgodowndetails
anddescription,remarksofthestocks.
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4)VOUCHERENTRY: Twooptionsalwaystobeactivated
a)UseSingleEntrymodeforpayment/receipt/contra:NO
b)UseCr/DrinsteadofTo/Byduringanentry :YES
OtheroptionsinVoucherentrycanbeactivatedaspertherequirement
ofacustomer.
5)INVOICEORORDERENTRY: ThisoptionisusedonlywhentheInvoice
orderisbeenneeded
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WORKINGINTALLY
ToworkwithTallyFundamentalknowledgeisrequired.Onemustknow the
goldenrulesofaccountingforpreparationofFinalAccounts.Inearlytimes
manualsystem ofaccounting was required formaintaining the Books of
AccountssuchasJournal,Cashbook,Specialpurposebook,Ledgerandsoon.
SuchlengthyprocessofpreparingAccountsisbeensimplifiedintally.InIndia,
TallyERP9IsthemostpopularandreliablebusinesssoftwareforFinance,
Accounting,inventory and Payrollmanagement.Tally professionals having
expertiseincomputerAccounting,Taxation,PayrollAccounting,Excise,VATand
ServiceTaxarehighlydemanded.
TheprocessofaccountingofTallyisgivenbelow:
1)CreationofCompanyinTally
2)IdentifythegroupsandLedgerstobecreatedrespectivelyforthespecific
transaction
3)Identifythe monetarytransaction with thehelp ofgivenvoucheror
Invoices
4)Know theparticularledgertobeDebitorCreditwiththehelpofthe
transactiongiven
5)Inadditionaltothevoucherentries,Costcenter,Costcategoriesarealso
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beencreatedforaccountingpurposeandStockitems,stockcategories,
andunitsofmeasurementwillbecreatedfortheInventoryinformation.
6)Onenteringallthetransactions,reportswillbeautomaticallygenerated
GROUPCREATION
AGroupisacollectionofledgerswhichhavesimilartransactions.Forexample,
allaccountheadsrelatingtofixedassetsofthecompanyaregroupedunderthe
fixedassetsprimarygroupinTally.ERP9.Usingthisclassification,onecan
generate reports thatare meaningfulas wellas compliantwith statutory
requirements.
TallyERP(providesasetof28Pre-definedgroupsunderwhichledgerscanbe
classifiedi.e,15Primarygroupsand13-SubGroups.Outofthe15Pre-defied
primarygroups,9primarygroupsareofCapital(WhichappearinBalanceSheet)
and6Primarygroupsarerevenuenature(whichappearinProfit&LossAccount).
All13Sub-groupsareclassifiedunderthenineprimarygroupsthatarecapitalin
natureandappearintheBalancesheet.
15PrimaryGroups
13SubGroups
Branch/Divisions
BankAccounts
CapitalAccount
BankODA/c
CurrentAssets
Cash-in-hand
CurrentLiabilities
Deposits(Asset)
DirectExpenses
Duties&Taxes
DirectIncomes
Loans&Advances(Asset)
FixedAssets
Provisions
IndirectExpenses
Reserves&Surplus
IndirectIncomes
SecuredLoans
Investments
Stock-in-hand
Loans(Liability)
SundryCreditors
Misc.Expenses(ASSET)
SundryDebtors
PurchaseAccounts
UnsecuredLoans
SalesAccounts

SuspenseA/c

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CreatingaGroup
InTally.ERP9therearetwooptionsforcreatingGroups:
SingleGroup–WecancreateonlyoneGroupbyusingSingleGroupcreation
screen.
MultipleGroups– WecancreatemultipleGroupsbyusingMultipleGroup
Creationscreen.
CreatingaSingleGroup
GroupisacollectionofLedgersofthesamenature,Tally.ERP9allowsyouto
creategroupsasperyourrequirements.
GotoGatewayofTally>AccountsInfo.>Groups>CreateunderSingleGroup
TheGroupCreationscreenisdisplayedasshown:
NameofGroup: EnterthenameoftheGrouptobecreated.
Forexample“AdministrativeExpenses”inthenamefield.
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Alias: Enteranaliasnametoallow accesstothegroupusingtheAliasin
additiontoitsnameorleaveitblank.Forexample,forAdministrativeexpenses,
youcanenterOfficeExpenseorevenanalphanumericcode,sayE001,asan
alias
Under:Specifyunderwhichexisting(Parent)groupthesub-classificationis
required.
Pre-definedGroupsinTally.ERP9
Bydefault,Tally.ERP9providesalistofGroupscalledpre-definedgroups.The
usercancreateanynumberofPrimaryGroupsandSubGroupswhichareagain
groupedunderaPrimaryGroup/SubGroup.
.
CREATINGALEDGER
GotoGatewayofTally>AccountsInfo.>Ledgers
YoucancreateeitherSingleorMultipleLedgers.
Debtor/CreditorClassification
1.PlacingindividualpartyaccountsunderSalesorPurchaseAccountsgroups:
Accountsofpartieswithwhom yourcompanyhastraderelationshipmustbe
openedunderoneofthefollowinggroups(orsub-groupsunderthem)only:
SundryDebtors
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SundryCreditors
Branch/Divisions
SalesandPurchaseaccountgroupsaremeantforrevenueaccountsandwould
bereflectedintheProfit&LossAccount.Ifyouopenpartyaccountsunderthese
groups,youwillfinditdifficulttopasssalesorpurchasevouchertransactions.
Forexample,inasalesvouchertransactionentry,youmustdebitanaccount
whichisasundrydebtor,branch/divisionorevenasundrycreditor(whya
creditor?-itwillbeexplainedsoon).Moreover,otherfacilitieslikebill-wise
allocationandtrackingwillnotbeavailableunlesstheaccountsbelongtooneof
thesegroups.
2.Openingtwoaccountsofthesameparty
ForconvenienceTally.ERP9hasseparatelyclassifieddebtors,creditorsand
branch/divisions.Thereisnooperationaldistinctionexceptforthepurposeof
keepingtheaccountsofaparticulargrouptogetherduringdisplaysandanalysis.
Youcanpassbothsalesandpurchaseentriesforapartyaccountplacedunder
SundryDebtors.
Werecommendthatyouusetheclassificationdependingonthemostnatural
groupfortheparty.Forexample,partiesfrom whom youbuymorefrequently
thenyouselltocanbeplacedunderSundryCreditors,asthatwouldbethe
naturalplaceforyoutolookforhisaccount.
Tally.ERP9doesnotrestricttheaccountsfromhavingobversebalances.Thus,a
SundryDebtorcanhaveacreditbalancedependingonthestateofhisaccount.
Note:Youneednotopentwoaccountsofthesameparty-oneunder
SundryDebtorsandanotherunderSundryCreditors.
Remember,Tally.ERP9restrictsyoufromopeningtwoidenticalledgeraccounts.
Ofcourse,youmaydecidetocircumventbymarkingoneaccountasA&Co-
S/DrandanotherA&Co-S/Cr.Doingthiswouldallowyoutohavetwoaccounts
ofthesamepartyundertwogroups,butyouwouldlosetheadvantageof
analyzinghisnetpositionatoneinstance.Werecommendthatyoumaintaina
singleaccounttoobtainbestresults.
3.PlacingexpenditureitemsunderaLiabilitiesgroup,e.g.,theexpenditureitem
'Rates&Taxes'underthegroup'DutiesandTaxes'.
ThegroupDutiesandTaxesisspecificallymeanttohandletaxationliabilitiesof
yourcompany.Rates&Taxesandotherstatutoryexpensesshouldbeplaced
underIndirectExpenses.
Pre-definedLedgersinTally.ERP9
Therearetwopre-definedledgersavailableinTally.ERP9,theyare:
 “Cash” ThisLedgeriscreatedundertheGroupCash-in-hand.Youcan
entertheopeningbalanceasonthedateofbooksbeginningfrom.You
canalsoalterthenameandevendeletetheLedger.
 “ProfitandLossAccount” This Ledgeris created underthe Group
Primary.Previousyear’sProfitorLossisenteredastheopeningbalance
forthisledger.Thebalanceenteredhereistreatedastheopening
profit/lossandshownintheBalanceSheetasopeningbalanceofProfit
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andLossaccountintheLiabilitiesside.
Youcannotdeletethisledger,butyoucanmodifythesame.
CreatingaSingleLedger
Bydefault,Tally.ERP 9containstwoLedgeraccountsnamely,Cash(Under
Cash-in-Hand)andProfitandLossAccount(directPrimaryAccount).Youneed
tocreateallotheraccountsheads.TherearenorestrictionsinLedgercreation
exceptthatyoucannotcreateanotherProfit&LossA/c.AnynumberofCash
Accountsmaybecreatedinanyothernameforex:PettyCash.
GotoGatewayofTally>AccountsInfo>Ledgers>Create
LedgerscanbecreatedinNormalmodeorinAdvancemode.

CreatingLedgerinNormalMode
ThecreationofaLedgerdependsonthefeaturesyouhaveselectedunderF11:
FeaturesofyourcompanyandF12:Configure.Youcancreateasingleledger
accountwiththedefaultoptionsenabled.
GotoGatewayofTally>AccountsInfo>Ledgers>SingleLedger>Create
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 Name: EntertheNameoftheaccount.Youcanprovidethefullnameof
theaccount.Tally.ERP9fitsitallin.PressEntertomovetothenextfield.
Tally.ERP9doesnotallowtheentryofduplicatenames.Theuniqueness
checkismadehereitself.
NOTEthatthepunctuationandothernon-relevantinformationareignoredby
Tally.ERP9initsrecognitionofaname.Thus,CST,C.S.T.andC.S.T.areall
consideredassame.
Tally.ERP9convertsthefirstletterofallrelevantwordstouppercase,which
helpsyou;speedupdataentry.
 Alias: Enteranaliasnameifrequired.YoucanaccesstheLedgers
usingtheoriginalnameorthealiasname.
 Under: AllaccountsmustbeclassifiedundertheirappropriateGroups.
SelecttheGroupunderwhichtheLedgeriscreatedfrom theListof
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CONFIGURATION TALLY - EBA

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