Tally.ERP 9
Tally is a financial accounting software used to store and maintain daily business transactions like purchase, sales, receipts, payments, purchase returns, sales returns, deposits and withdrawals etc. Tally developed by Tally Solutions (P) Ltd at Bangalore in 1990 -91.
Features of Tally
A user-friendly package
At any moment you get the results of the business. A codeless package.
It has the complete range of book-keeping facilities.
It has scenario management feature to analyse your business performance under varying assumptions.
It is higly secured against data tampering. It has very powerful audit facility.
Tally provides an interactive online help.
As Open Database Connectivity [ODBC] facility is available it can be connected to other programs and exchange data dynamically.
All the reports can be published on web and may be directly e-mailed. It is VAT, Service Tax, FBT, TDS, TCS compliant.
It is multilingual. Accounts can be maintained in Hindi, Marathi, Tamil, Telgu, Kannda, Punjabi, Gujrathi, Bengali, Malayalam.
It has complete Payroll management system and much more…….. ACCOUNTING
American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decision by users of the information”.
It is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a Financial Character and interpreting the result thereof. In simple terms accounting
means:-a) Recording b) Classifying
c) Summarizing all the transactions which take place in the day to day business.
It is the art of recording, classifying and summarizing all the day to day business transactions This is done for a particular period of 12 months called a 'Financial Year'. It generally starts on 1st April and ends on 31st March.
The main objectives of accounting are i. To maintain accounting records.
ii. To calculate the result of operations. iii. To ascertain the financial position. iv. To communicate the information to users
Transactions are those activities of a business, which involve transfer of money or goods or services between two persons or two accounts. Transactions are of two types, namely,
cash and credit transactions.
Cash Transaction is one where cash receipt or payment is involved in the transaction.
Credit Transaction is one where cash is not involved immediately but will be paid or received later
Classification of Accounts:
Transactions can be divided into three categories. i. Transactions relating to individuals and firms ii. Transactions relating to properties, goods or cash
iii. Transactions relating to expenses or losses and incomes or gains.
ACCOUNTS
PERSONAL IMPERSONAL
NATURAL ARTICIAL REPRESENTATIVE
REAL NOMINAL
TANGIBLE INTANGIBLE
Golden Rules of Accounting
NAME OF ACCOUNT DEBIT ASPECT CREDIT ASPECT
Personal The receiver The giver
Real What comes What goes out
Nominal All expenses and Losses All incomes and gains
Assets = Capital + Liabilities Liabilities = Assets – Capital Capital = Assets – Liabilities
Proprietor
The person who makes the investment and bears all the risks connected with the business is known as proprietor.
Capital
It means the amount (in terms of money or assets having money value) which the proprietor has invested in the firm or can claim from the firm. It is also known as owner’s equity or net worth. Owner’s equity means owner’s claim against the assets. It will always be equal to assets less liabilities, say: Capital = Assets - Liabilities.
Asset
Any physical thing or right owned that has a money value is an asset. In other words, an asset is that expenditure which results in acquiring of some property or benefits of a lasting nature. Assets are properties of business.
a) Tangible Assets:
Assets which have some physical existence are known as tangible assets. They can be seen, touched and felt, e.g. Plant and Machinery Tangible assets are classified into
i. Fixed assets :
Assets which are permanent in nature having long period of life and cannot be converted into cash in a short period are termed as fixed assets.
ii. Current assets :
Assets which can be converted into cash in the ordinary course of business and are held for a short period is known as current assets. This is also termed as floating assets. For example, cash in hand, cash at bank, sundry debtors etc. Asset converted into cash within a year. b) Intangible Assets
The assets which have no physical existence and cannot be seen or felt. They help to generate revenue in future, e.g. goodwill, patents, trademarks etc.
c) Fictitious Assets
These assets are nothing but the unwritten off losses or non-recoupable expenses. They are really not assets but are worthless items.eg. Preliminary expenses.
Liabilities
The amount which a business owes to others is liabilities. Credit balance of personal and real accounts together with the capital account are liabilities.
a) Long Term Liabilities
Liabilities which are repayable after a long period of time are known as Long Term Liabilities. For example, capital, long term loans etc.
b) Current Liabilities
Current liabilities are those which are repayable within a year. For example, creditors for goods purchased, short term loans etc.
c) Contingent liabilities
It is an anticipated liability which may or may not arise in future. For example, liability arising for bills discounted. Contingent liabilities will not appear in the balance sheet. But shown as foot note.
Drawings
It is the amount of cash or value of goods withdrawn from the business by the proprietor for his personal use. It is deducted from the capital.
Debtor
A person who owes money to the firm mostly on account of credit sales of goods is called a debtor. The debtors are shown as an asset in the balance sheet. Debtors are the persons who receive goods on credit.
Creditor
A person to whom money is owned by the firm is called creditor. The creditors are shown as a liability in the balance sheet. The creditors are shown as a liability in the balance sheet. Creditors are the persons who supply goods on credit, or bankers or lenders of money. Sundry Debtors: The person who is the receiver or customer.
Sundry Creditors: The person who is the giver or supplier Purchases
Purchases refer to the amount of goods bought by a business for resale or for use in the
production. Goods purchased for cash are called cash purchases. If it is purchased on credit, it is called as credit purchases. Total purchases include both cash and credit purchases.
Purchases Return or Returns Outward
When goods are returned to the suppliers due to defective quality or not as per the terms of purchase, it is called as purchases return.
Sales
Sales refer to the amount of goods sold that are already bought or manufactured by the business. When goods are sold for cash, they are cash sales but if goods are sold and payment is not received at the time of sale, it is credit sales. Total sales include both cash and credit sales. Sales Return or Returns Inward
When goods are returned from the customers due to defective quality or not as per the terms of sale, it is called sales return or returns inward
Stock
Stock includes goods unsold on a particular date. Stock may be opening and closing stock. The term opening stock means goods unsold in the beginning of the accounting period. Whereas the term closing stock includes goods unsold at the end of the accounting period.
Direct expenses: Direct expenses are incurred to make the goods sale able. They include wages, carriage and freight on purchases, import duty, customs duty, clearing and forwarding charges manufacturing expenses or factor. Expenses
Some of the direct expenses are:
i. Wages: It means remuneration paid to workers.
ii. Carriage or carriage inwards: It means the transportation charges paid to bring the goods from the place of purchase to the place of business.
iii. Octroi Duty: Amount paid to bring the goods within the municipal limits.
iv. Customs duty, dock dues, clearing charges, import duty etc.: These expenses are paid to the Government on the goods imported.
v. Other expenses: Fuel, power, lighting charges, oil, grease, waste related to production and packing expenses.
Revenue
Revenue means the amount receivable or realised from sale of goods and earnings from interest, dividend, commission, etc.
Expense
It is the amount spent in order to produce and sell the goods and services. For example, purchase of raw materials, payment of salaries, wages, etc.
Income
Income is the difference between revenue and expense. Expenses Outstanding: unpaid expenses/expenses due
Expenditure incurred during current year but the amount on which is not yet paid. Income Outstanding: Income accrued/Income earned but not received
Income earned during the current year but the amount on which is not received. Income received in Advance/Income received but not earned
Income received during current year but not earned or a part of which relates to the next year. Prepaid expense/Prepaid advance
Voucher
It is a written document in support of a transaction. It is a proof that a particular transaction has taken place for the value stated in the voucher. It may be in the form of cash receipt, invoice, cash memo, bank pay-in-slip etc. Voucher is necessary to audit the accounts.
Invoice
Invoice is a business document which is prepared when one sell goods to another. The statement is prepared by the seller of goods. It contains the information relating to name and address of the seller and the buyer, the date of sale and the clear description of goods with quantity and price. Receipt
Receipt is an acknowledgement for cash received. It is issued to the party paying cash. Receipts form the basis for entries in cash book.
Account
Account is a summary of relevant business transactions at one place relating to a person, asset, expense or revenue named in the heading. An account is a brief history of financial transactions of a particular person or item. An account has two sides called debit side and credit side.
“Trial balance is a statement, prepared with the debit and credit balances of ledger accounts to test the arithmetical accuracy of the books” – J.R. Batliboi.
Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. The entire ledger is summarized in the form of a Trial Balance. It is a statement containing the various ledger balances on a particular date.
Final Accounts
The final accounts of business concern generally includes two parts. The first part is Trading and Profit and Loss Account. This is prepared to find out the net result of the business. The second part is Balance Sheet which is prepared to know the financial position of the business.
Balance sheet is defined as ‘a statement which sets out the assets and liabilities of a business firm and which serves to ascertain the financial position of the same on any particular date’. It is a statement showing the financial position of a business.
Petty means ‘small’. The petty cash book is a book where small recurring payments like carriage, cartage, postage and telegram, printing and stationery etc., are recorded by the petty cashier, a person other than the main cashier.
Adjustment Entries:
While preparing the Profit and Loss Account for a particular period it is absolutely essential that the expenses, losses, income and gains relating only to that period are considered. Therefore the figures in the Trail Balance must be adjusted before preparing Profit and Loss account and Balance sheet.
These entries usually relate to the following: 1) Closing stock
2) Outstanding expenses 3) Prepaid expenses
4) Outstanding or accrued income 5) Income received in advance 6) Depreciation
7) Bad debts
8) Provision for bad debts 9) Interest on capital
Main Parts of Gateway of Tally 1. Title Area
2. Main Area 3. Calculated Area 4. Button Bar 5. Other Parts:
a. Current Period: This is the currently loaded or selected company’s accounting period b. Current Date: This is the date of the last voucher entry of the selected company (Not
the calendar date)
c. List of Selected Companies: This displays the name of the loaded or selected company
d. Masters: for creation of Accounting masters and inventory masters and importing master information
e. Transactions/Vouchers: for creation of Accounting vouchers and importing transaction information
Pre-define/Reserved groups?
During creation of a company, Tally automatically created 15 main/primary group and 13 sub-groups known as predefined sub-groups. These sub-groups cannot be deleted. We can add new primary and sub groups through group creation.
Primary Groups (9) Sub Groups (13)
Capital Account Reserves & Surplus (Retained Earnings)
Current Assets
Bank Accounts Cash-in-hand Deposits(Asset)
Loans & Advances (Asset) Stock-in-hand
Sundry Debtors
Current Liabilities
Duties & Taxes Provisions Sundry Creditors Fixed Assets
Investment
Loans (Liability)
Bank OD A/c [Bank OCC A/c] Secured Loans
Unsecured Loans Suspense A/c
Misc. Expenses (Assets)
Branch/Divisions
Out of the 15 pre-defined primary groups, the following are the six pre-defined groups that appear in the Profit & Loss Account.
1. Sales Accounts 2. Purchase Accounts
3. Direct Incomes [Income (Direct)] 4. Indirect Incomes [Income (Indirect)] 5. Direct Expenses [Expenses (Direct)] 6. Indirect Expenses [Expenses (Indirect)]
Accounting Voucher Inventory Voucher Non–Accounting Voucher
Order Voucher
Contra (F4) Rejection in (CTRL+F6) Memo (CTRL+F10) Purchase Order (CTRL+F4) Payment (F5) Rejection Out (ALT+F6) Reversing Journals
(F10)
Sales Order (CTRL+F5) Receipt (F6) Stock Journal (ALT+F7) Optional (CTRL+L)
Journal (F7) Delivery Note (ALT+F8) Post-Dated(CTRL+T) Sales (F8) Receipt Note (ALT+F9)
Purchase (F9) Physical Stock (ALT+10) Credit Note (CTRL+F8)
Debit Note (CTRL+F9)
Types of Ledger
Gateway of Tally > Accounts Info > Ledger > Create
1 Opening stock Stock-in-hand 34 Carriage Inward for purchase Direct Expenses 2 Closing stock Stock-in-hand 35 Cartage and coolie Direct Expenses
3 Capital Capital Account 36 Octroi Direct Expenses
4 Drawings Capital Account 37 Manufacturing Wages Direct Expenses
5 Cash/credit purchase Purchase account 38 Coal, gas, water, oil & fuel Direct Expenses 6 Cash/Credit Sales Sales Account 39 Factory rent, Insurance Direct Expenses 7 Cash-in-hand Cash-in-hand 40 Electricity, Light & Heating Direct Expenses
8 Cash at Bank Bank Account 41 Salary Indirect Expenses
9 Bank Overdraft Bank OD 42 Postage & Telegrams Indirect Expenses 10 Sundry Creditors Sundry Creditor 43 Telephone Charges Indirect Expenses
11 Sundry Debtors Sundry Debtor 44 Rent paid Indirect Expenses
12 Investment Investment 45 Rates & Taxes Indirect Expenses
13 Expense Outstanding Current Liabilities 46 Insurances Indirect Expenses 14 Income received in
advance
Current Liabilities 47 Interest on Bank Loans Indirect Expenses
15 Other Liabilities Current Liabilities 48 Interest on Loan Paid Indirect Expenses 16 Bills Payable Current Liabilities 49 Bank Charges Indirect Expenses
17 Bills Receivable Current Asset 50 Legal Charges Indirect Expenses
18 Stock of stationery Current Asset 51 Audit Fees Indirect Expenses
19 Prepaid Expenses Current Asset 52 Printing & Stationery Indirect Expenses 20 Income Outstanding Current Asset 53 General Expenses Indirect Expenses
21 Loose Tools Fixed Asset 54 Discount Allowed Indirect Expenses
22 Furniture& Fittings Fixed Asset 55 Carriage Outward for Sales Indirect Expenses
23 Motor Vehicles Fixed Asset 56 Repair Renewals Indirect Expenses
24 Plant & Machinery Fixed Asset 57 Motor Expenses Indirect Expenses 25 Land & Building Fixed Asset 58 Depreciation on assets Indirect Expenses
26 Household Property Fixed Asset 59 Commission Received Indirect Income
27 Patens Fixed Asset 60 Discount Received Indirect Income
28 Goodwill Fixed Asset 61 Rent Received Indirect Income
29 Loan from Others Loan Liabilities 62 Dividend Received Indirect Income 30 Bank Loan Loan Liabilities 63 Bad Debts Recovered Indirect Income 31 Mortgage Loans Secured Loans 64 Profit by sales of assets Indirect Income
32 Fixed Deposit at Bank Deposit 65 Sundry Income Indirect Income
33 Interest on Invest./Deposit Received
Indirect Income 66 Interest on Loan Received Indirect Income
VOUCHER ENTRY
Voucher is a document containing the details of financial transaction. For every transaction made, a voucher is used to enter the details into the ledger to update the financial position of the company. In manual, recording the business transaction is called journal entry. In tally this process is called Voucher entry.
Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The standard Accounting Vouchers are:
1. Contra Voucher (F4) 2. Payment Voucher (F5) 3. Receipt Voucher (F6) 4. Journal Voucher (F7) 5. Sales Voucher (F8) 6. Purchase Voucher (F9)
7. Credit Note Voucher (Ctrl+F8) 8. Debit Note Voucher (Ctrl+F9) Contra Voucher (F4):
Transaction related with transfer of funds between banks, cash, withdrawals and deposits Cash to Bank
Bank to Cash Bank to Bank
Cash to Cash (Petty cash) Payment Voucher (F5):
Used to record both cash and cheque payments Payment to supplies
Business expenses like rent, salaries, Commission paid, wage paid etc. Purchase of fixed asset by cash or cheque payment.
Give loans, repayments of loans and paid advance. Receipt Voucher (F6):
Used to record all cash and cheque receipts Collection from debtors
Income by sales of fixed assets for cash
Receipt like commission received, advances received, Interest received etc. Received Capital
Received loans and repayment of loans. Journal Voucher (F7):
Used to enter the adjustment transactions or the transactions without money movement like depreciation, party-to-party adjustments. i.e. Ledger to Ledger adjustments.
Fixed assets purchased for credit Purchase return
Sales return
Indirect expenses met for credit
Sales Voucher (F8): Used to record both cash and credit sales. Records the delivery of goods and invoice to customers.
Purchase Voucher (F9): Used to record both cash and credit purchase. Records the receipt of goods with invoice from suppliers.
Credit Note Voucher (Ctrl+F8): Sales return and payables. Credit Note for Goods rejected and returned by customer.
Debit Note Voucher (Ctrl+F9): Purchase return and received transactions. Debit Note for Goods rejected and returned to supplier.
Note:
Voucher Mode: Debit and credit formation. Trade discounts and sales tax are calculated manually.
Invoice Mode: Similar to actual invoice. Trade discounts and sales tax are automatically calculated.
Non-Accounting Voucher
Memo Voucher (CTRL+F10): It is a non accounting voucher whose entries do not affect your accounts at all.
Optional Vouchers (CTRL+L): This is not a separate voucher type. You can mark a Regular voucher as optional and then can be regularized the same.
Reversing Journals (F10): These are the vouchers for a single day.
Post-dated Vouchers (CTRL+T): You can mark voucher as post-dated while entering it. Tally will include the same on the due date.
Example: Accounting Only
1.4.2013: Arun start business with capital Rs.1, 00,000 2.4.2013: Bought goods for cash Rs. 10,000
3.4.2013: Sold goods to Kannan on credit Rs. 11,000 4.4.2013: Purchase goods from Mahesh Rs. 8000 on credit 5.4.2013: Received cash from kannan Rs. 7,500
6.4.2013: Paid to Mahesh on account Rs. 5,000 7.4.2013: Sold goods to Mano Rs. 6,000 on credit 8.4.2013: Cash sales Rs. 7,500
9.4.2013: Received cash from Mano Rs. 5,000 10.4.2013: Paid rent Rs. 2,000
11.4.2013: Paid salaries to office staff Rs. 3,000 12.4.2013: Received commission Rs.1,200
Example: Accounting Only
Lathika Computers started business from 1.4.2013 1.4.2013: Received from capital by cash Rs.2, 00,000 2.4.2013: Cash deposited into ICICI bank Rs. 50000
5.4.2013: Credit purchase from Power Traders Rs. 20,000 5.4.2013: Credit purchase from City Traders Rs. 20,000 10.4.2013: Credit purchase from Power Traders Rs. 20,000 10.4.2013: Credit purchase from City Traders Rs. 20,000 12.4.2013: Return goods to Power Traders Rs. 5000 12.4.2013: Return goods to City Traders Rs. 5000 13.4.2013: Credit sales to Deem & Co Rs. 50, 000 13.4.2013: Credit sales to Malar & Co Rs. 50, 000 15.4.2013: Cash sales to Pooja & Co Rs. 20000
15.4.2013: Received from cash Pooja & Co Rs. 20000 17.4.2013: Credit sales to Deem & Co Rs. 50, 000 17.4.2013: Credit sales to Malar & Co Rs. 50, 000 18.4.2013: Good returns by Deem & Co Rs. 5000 18.4.2013: Good returns by Malar & Co Rs. 5000
20.4.2013: Payment made by cheque to Power Traders Rs. 30, 000 20.4.2013: Payment made by cheque to City Traders Rs. 30, 000 22.4.2013: Received from cheque Deem & Co Rs.75, 000
22.4.2013: Received from cheque Malar & Co Rs.75, 000 25.4.2013: Payment made by cash
Petty cash – Rs. 1000 Furniture – Rs. 1000 Salaries – Rs. 1000 Rent – Rs. 1000 EB Bill – Rs. 1000 Telephone – Rs. 1000
Cash Purchase – Rs. 1000
30.4.2013: Payment made by Petty Cash Conveyance – Rs. 150
Postage – Rs. 100 Stationery – Rs. 200 Staff Welfare – Rs. 100 Example:
1.4.2013: Received from capital Rs. 200000 2.4.2013: Cash deposit in SBI bank Rs. 20000 Cash deposit in IOB bank Rs. 17000 Cash deposit in ICICI bank Rs. 33000 3.4.2013: Cash withdraw in SBI bank Rs. 8000 Cash withdraw in IOB bank Rs. 10000 Cash withdraw in ICICI bank Rs. 7000 4.4.2013: Cash transfer SBI to IOB Rs. 5000 Cash transfer IOBI to ICICI Rs. 10000
BILL WISE DETAILS
The details of all the sales and purchase transactions made with the debtors and creditors have to be maintained at the invoice level. In order to maintain these details Tally.ERP 9 provides a feature called as Bill-wise details for bill-wise accounting.
New Reference:
This reference is used in a sales or purchase voucher when they were made on credit. This is selected for new financial transactions.
Against Reference:
This reference is used during payment/receipt made against a credit sales or credit purchase made earlier and recorded with a new reference.
Advance:
This is applicable for the payment/receipt made in advance for the future events. On Account:
This reference is used where we are unable to adjust any payment or receipt against any specific pending bills.
Activate:
F11: Features > Accounting Features (F1) > Maintain Bill-Wise Details – Yes > (For Non-Trading Accounts also) – No Result:
Display Ledger Outstanding Statement
Gateway of Tally > Display > Account Books > Ledger > Select (Options) > ALT+B (View Bill Wise details)/Select the Bill-Wise button to view the bill-wise details of the customer.
Bill-Wise outstanding report:
Gateway of Tally > Display > Statements of Accounts > Outstandings > Receivables/Payables/Ledger > ALT+F1 (Detail)
Example:
Memo Traders listed their credit transactions with their various parties
1-4-2013: Credit sales to Rani Traders Rs.60000; Bill No: S-125; Due Date: 15 days. 4-4-2013: Credit purchase from Niva Ltd for Rs. 75000; Bill No: P-66; Due Date: 15 days.
7-4-2013: Advance money received from Revathi Traders Rs.10000 for future sales; Bill No: A-101.
10-4-2013: Received cash from Rani Traders Rs.30000; Bill No: S-125
12-4-2013: Credit sales to Revathi Traders for Rs. 75000; Bill No: S-127; Due Date: 20-4-2013 (Adjust Advance money Rs.10000 (A-101) in Against Ref)
13-4-2013: Advance amount paid to National Ltd for future purchase Rs.15000; Bill No: A-501. 14-4-2013: Received cash from Rani Traders Rs.20000; Bill No: S-125.
15-4-2013: Received cash from Revathi Traders Rs. 50000; Bill No: S-127. 18-4-2013: Paid cash to Niva Ltd Rs.40, 000; Bill No: P-66.
20-4-2013: Credit purchase from National Ltd for Rs.40, 000; Bill No: P-68. 25-4-2013: Paid cash to National Ltd Rs.20, 000 against Bill No: P-68.
CURRENCIES
Due to the globalization of business, many organizations have found the necessity to work with more than one currency. Transactions are often made in currencies other than the home currency. Tally.ERP 9's multi-currency feature is very powerful and allows to:
Record transactions with different currencies by allowing you to specify and change the currency rate of exchange.
Maintain the balance of the specified account in a foreign currency.
Tally.ERP 9 uses the term base currency for the currency in which your account books are maintained (typically in the home currency).
Activate:
F11: Features > Accounting Features > Allow Multi-Currency – Yes Gateway of Tally > Account Info > Currencies > Create
Pound ALT+156 £
Yen ALT+0165 (157) ¥
Euro ALT+0128 €
Franc ALT+159 ƒ
Dollar Shift+4 $
Gateway of Tally > Account Info > Currencies > Rates of Exchange
Standard Rate: Optional field used to calculate variances from actual transaction rates. Selling Rate: Used for “Receipt Voucher” where we receive in foreign currency Buying Rate: Used for “Payment Voucher” where we pay in foreign currency Entries are made by Date and Specified rate.
Note:
Press CTRL+A for saving the key. Don’t press “Enter” key because it is repeated again. Gateway of Tally > Account Info > Currencies > Alter (Mode) after the entry press CTRL+A. To view the foreign exchange gain or loss: Gateway of Tally > Balance Sheet (Report)
Example 1:
1-04-09 – Credit purchase for $1000 from Hi-Tech Company, USA Buying Rate: Rs. 46/$
Selling Rate: Rs. 47/$
10-04-09 – Paid $1000 to Hi-Tech Company, USA Buying Rate: Rs. 47/$
Selling Rate: Rs. 48/$ Example 2:
1-04-09 – Credit purchase for ¥2000 from Yuan Swang Co, China Buying Rate: Rs. 38/¥
Selling Rate: Rs. 39/¥
14-04-09 – Paid ¥2000 to Yuan Swang Co, China Buying Rate: Rs. 37/¥
Selling Rate: Rs. 38/¥ Example 3:
1-04-09 – Credit sales to Mr. Bill Clinton, USA worth $1000 Buying Rate: Rs. 46/$
Selling Rate: Rs. 47/$
14-04-09 – Received $1000 from Mr. Bill Clinton, USA Buying Rate: Rs. 47/$
Selling Rate: Rs. 48/$
COST CATEGORY & COST CENTRE
Cost Categories have been introduced specially for project oriented organisations as they require allocation of resources to parallel sets of cost centres. This requirement can be achieved using Tally.ERP 9's Cost Category feature. Any number of parallel allocations can be done as per requirements.
Centre: Means a unit of an organisation to which transaction are allocated. Cost Centre: means when only cost or expenses are allocated to those centres. Activate:
F11: Features > Accounting Features (F1) > Maintain Cost Centres > Yes
More than ONE Payroll/Cost category > Yes
Gateway of Tally > Accounts Info > Cost Categories > Create Gateway of Tally > Accounts Info > Cost Centres > Create Example:
Dindigul: Rs.10000 Madurai: Re.15000 Trichy: Rs.15000 Erode: Rs.10000 Answer:
1. Gateway of Tally > Accounts Info > Cost Categories > Create 2. Gateway of Tally > Accounts Info > Cost Centres > Create 3. Accounts Info >Ledgers > Cost center are applicable : Yes 4. Accounting Voucher > Payment
5. Note: Cost Category – Branches, Cost Centre – Dindigul, Madurai, Trichy and Erode Cost Centre Class
Cost Centre Classes are used to automate Cost Centre allocations in transactions. On creating a cost centre class, you need to select it in the voucher screen before making the entry. You can also use cost centre classes when Voucher Classes are being used.
Activate:
F11: Features > F1: Accounting Features
> Use Pre-defined Cost Centre allocations during Entry – Yes Result:
Gateway of Tally > Display > Statement of Accounts > Cost Centres > Category Summary Cost Centre Break-up/Ledger Break-up/Group Break-up
Example:
Paid Conveyance Rs. 4000 totally for four departments namely: Accounts (20%), Computer (30%), purchase (15%), sales (35%). Enter the cost centre
1. Cost category – Department;
2. Cost Centre: Accounts, computer, purchase, sales
3. F11: Features > Accounting Features > Use Pre-defined Cost Centre allocations during Entry – Yes. Note: Class Name: Expenses Allocation
4. Ledger Creation:
Name: Conveyance expense Under: Indirect Expenses
Cost centre are applicable? – Yes
5. Voucher Entry: Payment: Cost Centre class: Expenses Allocation Allocation will be made automatically.
Example:
1. Kalvi institute paid salary Rs.70000/- to various departments on 1-5-2009. The details: Accounts Department: Rs.20000
Computer Department: Rs.25000 Sales Department: Rs.10000 Purchase Department: Rs.15000 2. Rent paid Rs.50, 000 for branches Dindigul: Rs.10000
Madurai: Re.15000 Trichy: Rs.15000 Erode: Rs.10000
3. Paid Telephone Charges Rs. 8500 101: Rs.3000
102: Rs.2000 103:Rs. 1500
104:Rs.2000
4. Paid cleaning charges Rs.6000 for Accounts Department(25%), Computer Department(20%), Sales Department(25%), Purchase Department(30%).
Note: We define the percentage of cost, when activate in F11 features BUDGET
The main purpose of Budgeting is to control the expenditure. This is possible by creating budgets and comparing the budgeted figures against the actual figures. You can generate reports based on this need and view the variances or differences between the actual and budgeted figures.
Tally.ERP 9 allows you to create multiple budgets and also maintain budgets for specific purposes, e.g. for the Bank, for the Head Office, Marketing Budget, Finance Budget etc. Activate:
F11: Features > Accounting Features > Maintain Budgets and Controls - Yes Gateway of Tally > Account Info > Budgets > Create
Budget Alteration: Name: Official Budget/Expenses Budget Under: Primary
Period of Budget: Give the period range Area of Budget:
Group: We can set budget for groups of ledger accounts. Ledger: Budget for individual ledger
Cost Centre: To mark for the particular cost centre for each group Type of Budget:
On Net Transactions:
This option used for creating budgets for revenue accounts. Because the revenue accounts net transactions should be monitored or controlled.
e.g. Telephone charges, office expenses, maintenance charges etc. On Closing Balance:
The closing balance of non-revenue accounts like capital a/c, Bank a/c, Loans, current liability etc should be monitored.
e.g. Credit purchase/sales, sundry debtors/creditors. Result:
Gateway of Tally > Display > Trial Balance > ALT+B (Budget Variance) Example:
Hi-Tech Company plans their budget on 30-4-2013 for coming May month (1.5.2013 to 31.5.2013) Expense Budget: Telephone Charges 2000 Office Expenses 1500 Maintenance charges 1000 Conveyance 2000 Credit purchase 25000 Advertisement Charges 3000 Steps: 1. Ledger Creation
2. Budget Creation: Account info > Budget > Create: Name: Expenses Budget Hi-Tech Company enter their transactions on 31.5.2013
Cash paid to Telephone charges Rs. 3000, Office expenses Rs. 1000, Maintenance charges Rs. 1000, Conveyance Rs. 2500, Advertisement charges Rs. 2000.
Credit purchase made from Arun Tex Rs. 30000. Do the voucher entry on 31.5.2013 for the above transaction.
Steps
1. Record the above transaction in payment and purchase voucher as usual 2. To view the budget result
Result: Gateway of Tally > Display > Trial Balance press ALT+B for Budget Variation BANK RECONCILIATION STATEMENT
Reconciling the Company's Bank Accounts with the Bank Statement is a fundamental and regular task of accounting. This process is referred to as Bank Reconciliation. It is one of the pre-requisites of audit.
Methods for Reconciliation
Step 1: Display the ledger a/c of Bank (Ex: SBI Bank)
i.e Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c
Step 2: Press ‘F7”:Select the month for reconciliation and press ‘Enter’ to have vouchers for that month.
Step 3: Press ‘F12’ for configuration and activate ‘show narration’- yes. It is helpful to see the narration as that contains cheque numbers and other details
Step 4: Press ‘F5’Reconcile appeared in the button panel for shift to reconciliation mode. A new column appears as ‘Bank Date’.
Step 5: Enter the bank date in the “Date” field. For every entry of the bank date the vouchers are reconciled.
Note: After the reconciliation done, we get only non-reconciled statements.(Vouchers). Press ‘F12’ and set to ‘show Reconciled voucher also’ – Yes.
Example:
Eminent Tech, Madurai gives their Bank Transactions for the month of April 2009. They also show their Bank pass book detail (SBI Bank, Anna Nagar)
1-4-2013: Eminent Tech, Madurai deposited cash into SBI Bank Rs.100000 2-4-2013: Software sold for credit to the following persons:
Azeer Rs. 25000 Sounder Rs.23000 Chellapandi Rs.15000 Anand Rs.30000 Vaitheki Rs.28000
5-4-2013: Cheque received fom Azeer Rs.25000 and immediately deposited into SBI Bank for collection (Chq.No. 5678348)
8-4-2013: Cheque received from Chellapandi Rs.15000 and immediately deposited into SBI Bank for collection (Chq.No. 5678350)
10-4-2013: Cheque received from Anand Rs.30000 and immediately deposited into SBI Bank for collection (Chq.No. 5678355)
15-4-2013: Cheque paid to Modern Computers Rs.15000 (Chq.No. 367890)
18-4-2013: Cheque received from Sounder Rs.23000 and immediately deposited into SBI Bank for collection (Chq.No. 5678360)
25-4-2013: Cheque paid to Kumar Agencies for Rs.20000 (Chq.No. 367896)
BANK PASS BOOK (as on 30-4-2013)
Date Name Deposit(Dr) Withdraw(Cr) Balance
1-4-2013 Cash 100000 - 100000 Cr 10-4-2013 Azeer 25000 - 125000 Cr 13-4-2013 Chellapandi 15000 - 140000 Cr 20-4-2013 Anand 30000 - 170000 Cr 25-4-2013 Modern Comp - 15000 155000 Cr 29-4-2013 Kumar Agency - 20000 135000 Cr Answer:
1. Do voucher entry for the above transactions.
2. Gateway of Tally > Display > Account Books > Leger > SBI Bank a/c >Press F7 for April month/ Press F5 for Reconcile
3. In Bank date column enter the date as shown in Bank Pass Book. 4. After the reconciliation: Balance as per Company books: Rs. 1, 58,000 Amounts not reflected in Bank: Rs. 23,000 Balance as per Bank: Rs. 1, 35,000
Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock, stock movement between storage locations or godowns and providing information on stock availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that the financial statements reflect the closing stock value from the Inventory system.
Group is the collection of ledger of the same nature.
Stock Group are provided to help the classification of stock items Stock Categories offers a parallel classification of stock items Godown is a place where stock items are stored
Unit of Measure
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. A Compound Unit is a combination of two simple units of measure. Examples of simple units are: nos., metres, kilograms, pieces etc. Examples for compound units are: a box of 10 pieces etc. Create the Units of Measure before creating the Stock Items.
Gateway of Tally > Inventory Info. > Units of Measure > Create.(Unit Creation) Let us create the unit Nos.
1. Type: Simple 2. Symbol: Nos
3. Formal Name: Numbers 4. Number of Decimal Places: 0
Unit of Measure
Simple Units Symbol Compound Units
Number No Doz of 12 No
Kilogram Kg Box of 25 Pack
Litre Ltr Box of 25 No
Box Box Pack of 100 No
Pack Pk
Dozen Doz
Order Voucher:
1. Purchase Order (Alt+F4) 2. Sales Order (Alt+F5) Inventory Voucher: 3. Rejections In (Ctrl+ F6) 4. Rejections Out (Alt+F6) 5. Stock Journal (Alt+F7) 6. Delivery Note (Alt+F8) 7. Receipt Note (Alt+F9) 8. Physical Stock (Alt+F10) Activate:
F11: Features > Inventory Features (F2) > Use Tracking Numbers (Delivery/Receipt Notes)–Yes Use Rejection inward/outward notes – Yes
Purchase Order (Alt+F4):
Records placing an order for stock items to suppliers. Sales Order (Alt+F5):
Records order details for stock items received from customers. Rejections Out (Alt+F6): (Purchase Return)
Records rejected stock details returned to suppliers. Used to record the goods returned to the supplier
Rejections In (Ctrl+ F6): (Sales Return)
Records rejected stock details received from customers. Use to record the rejection by the customer which is delivered already. Used to record the goods returned from the customer Stock Journal (Alt+F7):
Essentially records the transfer of stock from one Godown to another. This voucher type is used to record godown adjustments like transfer of goods from one godown to another godown or manufacturing unit or goods is entered in destination.
Delivery Note (Alt+F8):
Records delivery of new stock to customers. Delivery note is an authentication for the goods delivered to a customer. This voucher type used to record delivery of goods to customer without invoice. Movement of goods is recorded without affecting the financial goods. Receipt Note (Alt+F9):
Records receipt of new stock from suppliers. Used to record the goods received from the supplier without purchase invoice. It is an authentication for the goods received.
Physical Stock (Alt+F10):
Records the physical stock count as the new stock balance. If any difference between actual stock and stock report from Tally, change can be made by adjusting the stock using this voucher. Tally.ERP 9 considers the stock available based on the entry made in a physical stock voucher.
Example: Accounts with Inventory
1-4-2013: Received from capital by cash Rs. 5, 00,000 2-4-2013: Cash deposited into SBI Bank Rs. 2, 00,000 5-4-2013: Purchase from Royal Textiles
Cotton saris 50nos at Rs. 300/nos Chudithar 50nos at Rs. 400/nos 7-4-2013: Purchase from Kishore Textiles Cotton saris 50nos at Rs. 300/nos Chudithar 50nos at Rs. 400/nos 10-4-2013: Purchase from Santhose Textiles Cotton saris 50nos at Rs. 300/nos Chudithar 50nos at Rs. 400/nos T-shirt 100nos at Rs. 100/nos Jeans 100nos at Rs. 1000/nos 11-4-2013: Sales to London store
Cotton saris 60nos at Rs. 500/nos Chudithar 60nos at Rs. 750/nos T-shirt 60nos at Rs. 1000/nos Jeans 60nos at Rs. 1300/nos 17-4-2013: Cash sales
Cotton saris 40nos at Rs. 500/nos Chudithar 40nos at Rs. 750/nos T-shirt 20nos at Rs. 1000/nos Jeans 20nos at Rs. 1300/nos
TNGST (Tamil nadu state government sales tax) – 4% 20-4-2013: Payment by cheque
Royal Textiles Rs. 25000 Kishore Textiles Rs. 25000 Santhose Textiles Rs. 100000
22-4-2013: Received cheque London store Rs. 2,00,000 25-4-2013: Payment made by cash
Petty cash – Rs.2000 Furniture – Rs.25000 Salary – Rs.30000 Wages – Rs.25000 Carriage inwards – Rs.4000 Rent – Rs.10000 EB – Rs.5000 Telephone– Rs.8000
26-4-2013: Payment made by petty cash Postage – Rs.300 Conveyance – Rs.250 Stationery – Rs.150 Staff Welfare – Rs.200 Maintenance – Rs.250 General Expenses – Rs.150
Example: Accounts with Inventory
1-4-2013: Received from capital by cash Rs. 5, 00,000 2-4-2013: Cash deposited into UCO Bank Rs. 2, 00,000 7-4-2013: Credit Purchase from Govind Electricals Ceiling Fan 100nos at Rs. 800/nos
Table Fan 100nos at Rs. 1000/nos Mixie 100nos at Rs. 1500/nos Grinder 100nos at Rs. 2000/nos
10-4-2013: Credit sales to Ram Electricals Ceiling Fan 70nos at Rs. 1000/nos Table Fan 70nos at Rs. 1500/nos Mixie 70nos at Rs. 2000/nos Grinder 70nos at Rs. 2500/nos
TNGST (Tamil nadu state government sales tax) – 5% 15-4-2013: Cash sales
Ceiling Fan 10nos at Rs. 1000/nos Table Fan 10nos at Rs. 15000/nos Mixie 10nos at Rs. 2000/nos Grinder 10nos at Rs. 2500/nos
TNGST (Tamil nadu state government sales tax) – 4% Cash discount on total sales value (-5%)
15-4-2013: Paid to cheque Govind Electricals Rs. 2,00,000 20-4-2013: Received cheque from Ram Electricals Rs. 3,00,000 23-4-2013: Payment made by cash
Petty cash – Rs.2000 Furniture – Rs.15000 Salary – Rs.100000 Wages – Rs.7000
Carriage inwards – Rs.1500
25-4-2013: Payment made by petty cash Postage – Rs.150
Conveyance – Rs.200 Stationery – Rs.150
Staff Welfare – Rs.20
TRACKING NUMBER
Generally in business, deliver the stock with delivery note and receive the stock with receipt note. The bill will be raised later. The bill has to be linked or tracked with the goods already delivered/received when the bill is made.
'Tracking' the delivery or receipt of inventory, is purely an inventory-related activity. Tracking number option is an additional facility which provides links between transactions.
Tracking number links the different accounting and inventory vouchers as follows: 1. Receipt note with purchase vouchers
2. Delivery note with sales voucher 3. Rejections-in with credit note 4. Rejections-out with Debit note Activate:
F11: Features > Inventory Features (F2) > Use Tracking Numbers (Delivery/Receipt Note) – Yes Use Rejection inward/outward notes – Yes
Result:
Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending Sale Bills Pending Example:
Poorvika Mobile store purchased from Nokia Co, Chennai for credit
1-4-2013: Received the following items with Receipt note (Ref No/Tracking No: R-101) N100 50Nos @ Rs.1500/No
N300 25Nos @ Rs.1800/No
5-4-2013: Received the invoice (Purchase Bill No: P-300) from Nokia Co, Chennai for the goods received on 1.4.2013 (Ref No/TrackingNo.R-101)
1. Inventory Voucher > Receipt Note (ALT+F9)
2. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending “Goods Received but bills not Received”
3. Accounting Voucher > Purchase (F9)
4. Gateway of Tally > Display > Statements of Inventory > Purchase Bills Pending
Note: Since we received both goods and bills for Nokia Co, Chennai so there is no report in purchase bills pending
Example:
Universal Mobile store purchased from Motorola Co, Chennai for credit
1-4-2013: Received the following items with Receipt Note (Ref No/TrackingNo.R-966) W230 25Nos @ Rs.2000/No
Z750 25Nos @ Rs.2200/No
5-4-2013: Received the invoice (Purchase Bill No: 225) from Motorola Co, Chennai for the goods received on 1.4.2013 (Ref No/TrackingNo.R-966)
8-4-2013: Delivered the following items with Delivery note to Neelavathi Mobiles, Madurai (Ref No/TrackingNo.D-456)
W230 10Nos @ Rs.2200/No Z750 15Nos @ Rs.2500/No
12-4-2013: Send the sales bill to Neelavathi Mobile, Madurai for the good delivered on 8-4-2013(Ref No/Tracking No: D-456) Sales Bill No:S-875
ORDER PROCESSING
Order Processing refers to placing orders with suppliers for purchasing from them or receiving orders from customers for the purpose of selling.
In Tally.ERP 9, Order Processing is linked to Inventories. We can compare the sales or purchase order, delivery notes and receipt notes and know the pending status of the order.
Activate:
F11: Features > Inventory Features (F2) > Allow Purchase Order Processing - Yes Allow Sales Order Processing – Yes
Use Tracking Numbers (Delivery / Receipt Notes) - yes Result:
Gateway of Tally > Display > Statements of Inventory > Sales order Outstandings Purchase order Outstandings Example:
1-4-2013: Poorvika Mobiles, Dindigul make the following purchase order to LG Mobiles Co. Bangalore. Cell phones:
L445 50No @ Rs.2500/No L777 50No @ Rs.2800/No Purchase Order No: PO-101 Due on: 6-4-2014
7-4-2013: Received the ordered items from LG Mobiles Co. Bangalore for the purchase order No: PO-101. Ref. No./Tracking No:R-105
Answer:
1. Enter purchase order (ALT+F4)
2. To view order position: Gateway of Tally > Display > Statements of Inventory > Purchase order outstanding
3. Enter Receipt Note (ALT+F9)
4. To view order position: Gateway of Tally > Display > Statements of Inventory > Purchase order outstanding > All Orders
Note: Since the purchase order is cleared there will be no purchase order details. Example:
New Century Book House, Madurai Opening Stock as on 1-4-2013
English Grammar 10 no @ Rs.120 each Business Ethics 50 no @ Rs.95 each Modern Science 50 no @ Rs.115 each Micro biology 50 no @ Rs.140 each Bio-Chemistry 75 no @ Rs.130 each
New Century Book House, Madurai shows the following business transactions for the month of April 2014
1-4-2013: Purchase order to S.Chand Co. Delhi Order No: PO-150, Due on:8.4.2013 Advanced Accountancy 100 no @ Rs.200 each
Company Law 75 no @ Rs.120 each
Business Organization 75 no @ Rs.80 each Cost Accounting 50 no @ Rs.175 each
5-4-2013:Sales order received from PR Book shop, Trichy Order No:SO-215, Due on:10-4-2014 Business Ethics 10 no @ Rs.95 each
Modern Science 15 no @ Rs.115 each Micro biology 25 no @ Rs.140 each Bio-Chemistry 30 no @ Rs.130 each
7-4-2013: Received goods from S.Chand Co for purchase order No:PO-150, Ref:R-801, Tracking No:R-801.
8-4-2013: Purchase Bill Received from S.Chand Co for Receipt Note No:R-801, Bill No:P-2001 10-4-2013: Good delivered to PR Book Shop for Sales order No: SO-215, Ref: D-1300, Tracking No: D-1300
11-4-2013: Sales Bill made to PR Book shop for Delivery Note No: D-1300, Bill No: S-3001
BATCH-WISE DETAILS
Batch details are used to identify the movement of inventory in batches or lots. Although this is a requirement primarily of the pharmaceutical industry, the same can be used by other industries
that maintain or manufacture perishable goods. Many organisations also purchase in batches in order to monitor the result of the batch purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot.
Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the expired date. Expiry date cannot be prior to the voucher date.
Activate:
F11: Features > Inventory Features (F2) > Maintain Batch-Wise details - Yes (Set Expiry Dates for Batches) – Yes Gateway of Tally > Inventory Info > Stock Items > Maintain in Batches – Yes
Track Date of Mfg - Yes Use Expiry Dates - Yes Result:
Gateway of Tally > Display > Inventory Books > Ageing Analysis Example:
Reliance store furnishes the following details On 1-4-2013 purchased for cash
Products Batch No Mfg Date Expiry Date Qty Rs.
Parle-G 101 1-5-2013 1-5-2014 100pack 5/pack
Good Day 102 1-4-2013 1-6-2014 75pack 10/pack
Britannia 103 1-3-2013 1-9-2014 120pack 8/pack
50-50 104 1-2-2008 1-12-2014 50pack 6/pack
On 1-4-2013 sold for cash
Products Batch No Mfg Date Expiry Date Qty Rs.
Parle-G 101 1-5-2013 1-5-2014 40pack 6/pack
Good Day 102 1-4-2013 1-6-2014 25pack 12/pack
50-50 104 1-2-2008 1-12-2014 20pack 7/pack
USE DIFFERENT BETWEEN ACTUAL & BILLLED QUANTITY
Bill is made only for Actual goods not for free goods. But the stocks contain both billed and actual quantity.
Activate:
F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty - Yes Result:
Gateway of Tally > Stock Summary Example:
1 pack of Hamam soap is given free on every 3 pack of Hamam soap Rs.15/soap 1 Bottle of Lion Date Syrup is given free on every 1 bottle purchased Rs.80/bottle Note:
Actual quantity will update stock and billed quantity will be used to compute transaction value. TRACK ADDITIONAL COST OF PURCHASE
The cost of an item is the rate at which the item is purchased. However, there are other expenses like Packing charges, Freight charges, Cartage incurred, etc. which add to the cost of purchasing the item. Thus, the additional cost details are required to be added to the actual cost of purchase. Purchase cost includes all those expenses related to purchase. The use of this option are known as the “Effective rate of purchases”
Activate:
F11: Features > Inventory Features (F2) > Use different Actual & Billed Qty – Yes Track additional cost of purchase - Yes Result:
Example:
1-4-2013: Purchased writing board from Newply Co. 100 nos @ Rs. 80/no (Credit Purchase) Additional Cost Details: Sales Tax 4%, Packaging Charges Rs.100, Carriage Rs.100
Bill Details:
1-4-2013 Newply Co Bill No: 525
Particulars Qty Rate (Rs.) Total (Rs.)
Writing Board 100nos 80 8,000 Additional Cost: Sales Tax (4%) 300 Packaging Charges 100 Carriage 100 8,520 Answer:
Ledger and stock item creation
Voucher entry – Enter in voucher format (CTRL+V)
Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Item Analysis > Select the item – Press enter key. Form that screen press F12: Configure set ‘yes’ to all option.
BILL OF MATERIALS
In manufacturing process product will be produced with many components or spare parts or raw materials. These goods are called Bill of Materials.
The BOM should be available while manufacturing an item. Hence, first enable manufacturing entries. This is done through a stock journal. It is wise to create a new voucher type –
Manufacturing journal which is based on stock journal. Stock journal is used as manufacturing journal
Activate:
Gateway of Tally > F12: Configure > Accts/Inventory Info > Allow component list details (Bill of Materials) – Yes
Result:
Gateway of Tally > Display > Inventory Books > Stock Item Example:
Following is the opening stock of Vicco Laboratories on 1-4-2013
Ingredients Opening Qty Rate
Babhul 500 gm 0.25/gm Manji 500 gm 0.25/gm Bor 500 gm 0.25/gm Vajradanthi 500 gm 0.25/gm Bakul 500 gm 0.25/gm Maifal 500 gm 0.25/gm
To manufacture 100gm/1 unit of Vicco Tooth powder needs the following components Ingredients Qty (gms) Babhul 16 Manji 16 Bor 22 Vajradanthi 14 Bakul 22 Maifal 10
On 1-4-2013 Vicco Laboratories, manufactured 100 units of Vicco Tooth Paste Additional Cost: Wages Rs.300, Power Rs.60
1. Voucher Type creation : Gateway of Tally > Accounts Info > Voucher Type > Create – ‘Manufacturing Journal’ – Stock Journal. Use as Manufacturing Journal - Yes
2. Units of Measure – Create Compound units ‘1 unit of 100gms’
3. Stock Item Creation: 1. In ‘Component’ stock item creation screen ex. Babhul Set component (BOM)? No. Create other Component stock item 2. In ’Main’ Stock item creation screen (ex. Vicco Tooth Powder) Set component (BOM)? Yes
Components of: Vicco Tooth Powder Unit of Manufacture :1 Unit
4. Voucher Entry: Voucher Type > Stock Journal (ALT+F7) > Select Manufacturing Journal. In Manufacturing Journal:
(a) Name of the Product: Vicco Tooth Powder Qty: 100 unit Now tally automatically fill the component details
(b) Provide Additional Cost details for power and wages Example:
Following is the opening stock of Raj Health Products on 1-4-2013
Ingredients Opening Qty Rate
Wheat 1500 gm 3/gm
Maize 1500 gm 4/gm
Soya Beans 1500 gm 5/gm
Rice 1500 gm 2/gm
Beans 1500 gm 4/gm
To manufacture 500 gm/1 unit health powder needs the following components Ingredients Qty (gms)
Wheat 75
Maize 125
Rice 150
Beans 50
On 1-4-2013 Raj Health products manufactured 5 units of Health powder Additional Cost: Wages Rs.500, Power Rs.100
PRICE LIST
Price List refers to a list of items maintained by an organisation along with their price details. A price list is generally used by organisations which deal in multiple products. Price Lists are maintained in various structures for different types of buyers (customers), viz., Wholesalers, Dealers, Retailers, etc. The price list is structured based on the classification of buyers and is referred to at the time of making sales. Whenever the sale prices change (on the basis of time), the changes reflect in the Price List also. In case of bulk sales, discounts can also be given to the buyers.
Usage:
Various price lists available
a) For classes of business like whole sale, retail, export and dealership. b) For different geographical areas.
c) For quantity and volume. Activate:
F11: Features > Inventory Features (F2) > Use Multiple Price Levels – Yes Company Price Levels > 1) Whole Sales
2) Retail Sales 3) Export 4) Dealerships
Gateway of Tally > Inventory info > Stock Groups Stock Items Units of Measure
Result:
Gateway of Tally > Stock Summary (Reports)
Note: Cash sales/purchase never mentioned their name in Voucher Example:
Opening stock of Saranya Book store as on 1-4-2013 Accounts Book 350Nos
Maths Book 400Nos English Book 500Nos
Following are the price list of Saranya Book Store, Madurai on 1-4-2013 (A)Retail Price
Account Book
Less than 50Nos Rs. 400 50 to 100Nos Rs. 390 More than 100Nos Rs. 375 Maths Book
Less than 40Nos Rs. 325 40 to 80Nos Rs. 310 More than 80Nos Rs. 300 English Book
Less than 50Nos Rs. 350 50 to 100 Nos Rs. 325 More than 100Nos Rs. 315 (B) Whole Sales
Less than 50Nos Rs. 315 50 to 100Nos Rs. 300
More than 100Nos Rs. 295 (Disc 2%) Maths Book
Less than 40Nos Rs. 950 40 to 80Nos Rs. 550
More than 80Nos Rs. 350 (Disc 1%) English Book
Less than 50Nos Rs. 335 50 to 100 Nos Rs. 300 More than 100Nos Rs. 280
15.4.2013: Sold to Neelavathi Book Shop (Whole sales) for credit 25.4.2013: Sold to New Century Book Shop (Retail sales) for cash 26.4.2013: Sold to Anitha Book Shop (Whole sales) for credit 28.4.2013: Sold to Deepika Book Shop (Retail sales) for cash
Value Added Tax (VAT)
Value Added Tax (VAT) is an indirect tax on goods, introduced in lieu of sales tax, to ensure transparency and greater compliance. The basic premise of VAT is to levy tax on the ‘true value’ added to the goods, at each stage in the transaction chain.
This ultimately reduces:
Tax paid to the government.
Activate:
F11: Features > Statutory & Taxation (F3) > Enable Value Added Tax – Yes Set/Alter VAT Details – Yes VAT Computation Report
Depending on the Input VAT paid during purchases and the output VAT availed on sales, VAT Refundable or Payable is calculated in this section by Tally.ERP 9. The difference between Input VAT and Output VAT = VAT Refundable.
Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation Input Tax - Tax paid on purchase
Output Tax – Tax paid on sales VAT Rates:
Vat @ 1%: Goods like gold, silver, precious metals and stones etc.
Vat @ 4%: Largest no of goods (270) which include commodities used in daily life, drugs, medicines, agriculture, industrial inputs, capital goods and declared goods.
Vat @ 12.5%: The remaining items are under this rate.
Goods outside VAT: Items whose prices are not fully marketed determined. E.g. Liquor, lottery tickets, petroleum products
Exempted from VAT: It is a list of 40 commodities which includes natural and unprocessed products in unorganized sector
PAYROLL
Payroll refers to a series of accounting transactions involved in the process of paying employees for the services rendered after taking all the statutory and non-statutory deductions into account, in conformance with the terms of employment, company policy and the law of the land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions. Tally payroll is integrated with accounting to give the user the benefit of simplified payroll processing and accounting. Tally payroll enables user to setup and implement salary structure ranging from simple to complex as per the organization requirement.
Activate:
F11: Features > Accounting Features (F1) > Maintain Payroll – Yes
More than ONE Payroll/Cost Category – Yes F11: Features > Statutory & Taxation (F3) > Enable Payroll Statutory - Yes
Set/Alter Payroll Statutory Details - Yes Result:
Gateway of Tally > Payroll Reports > Statements of Payroll STEP 1:
Gateway of Tally > Payroll Info > Units (Work) > Create > Unit Creation Simple Unit: Month, Day, Hour, Minutes
Compound Unit: Month of 26 Days, Hours of 60 Minutes STEP 2:
Gateway of Tally > Payroll Info > Attendance/Production Types > Create
Name Attendance Type
Present Attendance/Leave with pay Absent Leave without pay
Overtime Production
Paid Leave Attendance/Leave with pay Unpaid leave Leave without pay
STEP 3:
Gateway of Tally > Payroll Info > Employee Groups > Create Employee Group: Manager, Supervisor, Administrator, Marketing STEP 4:
Gateway of Tally > Payroll Info > Employees Employee Name and details
STEP 5:
Gateway of Tally > Payroll Info > Pay Heads > Create Pay Head Type
Earning for Employees Deduction from Employees Employee Statutory deductions Employer’s statutory Contributions Gratuity
Loans and Advances
Reimbursements to Employees (1)Basic Salary
Pay Head Type: Earnings for Employees Income Type: Fixed
Under: Indirect Expenses Affect Net Salary? Yes
Name to appear in Payslip: Basic Salary Use for Gratuity? No
Calculation Type: On Attendance Attendance/Leave with pay: Present Calculation Period: Months
Per Day Calculation Basis: As per calendar period (2)HRA
Income Type: Fixed Under: Indirect Expenses Affect Net Salary? Yes
Name to appear in Payslip: HRA Use for Gratuity? No
Calculation Type: As Computer Value Calculation Period: Months
Computation Info: Compute: On Specified Formula
Specified Formula: Basic Salary – Enter Values (3)Conveyance
Pay Head Type: Earnings for Employees Income Type: Fixed
Under: Indirect Expenses Affect Net Salary? Yes
Name to appear in Payslip: Conveyance Use for Gratuity? No
Calculation Type: Flat Rate Calculation Period: Months (4)DA
Pay Head Type: Earnings for Employees Income Type: Fixed
Under: Indirect Expenses Affect Net Salary? Yes
Name to appear in Payslip: DA Use for Gratuity? No
Calculation Type: As Computer Value Calculation Period: Months
Computation Info: Compute: On Specified Formula
Specified Formula: Basic Salary – Enter Values (5)PF
Pay Head Type: Deductions from Employees Under: Current Liabilities
Affect Net Salary? Yes
Name to appear in Payslip: PF
Calculation Type: As Computer Value Calculation Period: Months
Computation Info: Compute: On Specified Formula
Specified Formula: Basic Salary – Enter Values (6)Professional Tax
Pay Head Type: Employees’ Statutory Deductions Under: Current Liabilities
Affect Net Salary? Yes
Name to appear in Payslip: Professional Tax Calculation Type: As Computer Value Calculation Period: Months
Computation Info: Compute: On Current Earnings Total (Slab Type – Value) (7)Gratuity
Pay Head Type: Gratuity Under: Current Liabilities (8)Salary Payable Ledger
Pay Head Type: Not Applicable Under: Current Liabilities STEP 6:
Gateway of Tally > Payroll Info > Salary Details > Define > Name of Employee/Group (select) Effective from > Date
Pay Head > Copy for Employee Group/ Start Afresh STEP 7:
Gateway of Tally > Payroll Vouchers > Attendance (CTRL+F5) Payroll (CTRL+F4)
Attendance Voucher: Select Employee Name, Present, Absent, Paid Leave Payroll Voucher: ALT+A for Autofill. Now a screen “Employee Filters” appear Employee Group: Ashok, Payroll Ledger : Salary Payable
STEP 8:
Gateway of Tally > Accounting Voucher > Payment (F5) Enter only in single entry mode (F12: Configure)
Account: Cash; Press ALT+A, Select salary payable and press enter. Now tally
Automatically transfer the salary amount employee a/c is debited and cash a/c is credited.
Display:
Gateway of Tally > Payroll Reports > Statements of Payroll Example:
Eminent Technologies provide the salary details for the month of ‘April – 2013’
Employee Name M. Amala S. Bala C. Chandru
Employee Group Manager Supervisor Administrator
Employee Number 101 102 103
Employee I.T.PAN TN239800PP TN233459PP TN235674PP
Bank Detail 6601, SBI, MDU 6602, SBI, MDU 6607, SBI, MDU Salary Heads
Monthly Payments
Basic Salary Rs. 12, 000 Rs. 8,000 Rs. 10,0000
HRA Upto Rs. 5000 -> 3% Upto Rs. 5000 -> 3% Upto Rs. 5000 -> 3% Upto Rs. 5000 -> 4% Upto Rs. 5000 -> 4% Upto Rs. 5000 -> 4%
DA Upto Rs. 8000 -> 3%
Above Rs. 8000-> 4%
Conveyance Rs.3000 Rs.2000 Rs. 3000
PF 6% 7% 8%
Professional Tax Ref * Ref * Ref *
Gratuity 25days upto 24months 25days upto 24months 25days upto 24months Attendance Details Month Days 26 26 26 Present 22 20 21 Absent 2 2 1 Paid leave 2 2 2 Unpaid Leave _ 2 2 Over Time _ _ _ Net Salary ? ? ?
Professional Tax (Ref.No.1)*:
From Amount Amount upto Slab Type Value Basis
3,000.00 4,999.00 Value 30
4,999.00 7,999.99 Value 60
7,999.99 9,999.99 Value 100
9,999.99 14,999.99 Value 150
14,999.99 _ Value 200
SHORT CUT KEYS FUNCTION KEY COMBINATION
Function Key Functionality Availability
F1
To select Company At all masters menu screen To select Accounting Features F11: Features Screen
CTRL+F1 To select payroll vouchers to alter At Accounting/Inventory Voucher Creation & Alteration screen
F2
To change the current date AT almost all screen in Tally To select Inventory Features F11: Features Screen
CTRL+F2 To select order buttons At Accounting/Inventory Voucher Creation & Alteration screen
F3
To select the company AT almost all screen in Tally To select Statutory and Taxation
Features
F11: Features Screen
F4 To select the Contra Voucher At Accounting/Inventory Voucher Creation & Alteration screen F5 To select the payment voucher At Accounting/Inventory Voucher
Creation & Alteration screen F6 To select the Receipt Voucher At Accounting/Inventory Voucher
Creation & Alteration screen CTRL+F6 To select the rejection in voucher At Accounting/Inventory Voucher
Creation & Alteration screen F7 To select the Journal Voucher At Accounting/Inventory Voucher
Creation & Alteration screen F8 To select the Sales Voucher At Accounting/Inventory Voucher
Creation & Alteration screen CTRL+F8 To select the credit note Voucher At Accounting/Inventory Voucher
Creation & Alteration screen F9 To select the Purchase Voucher At Accounting/Inventory Voucher
Creation & Alteration screen CTRL+F9 To select the debit note Voucher At Accounting/Inventory Voucher
Creation & Alteration screen F10 To select the Reversing Journal
Voucher
At Accounting/Inventory Voucher Creation & Alteration screen CTRL+F10 To select the Memorandum Voucher At Accounting/Inventory Voucher
Creation & Alteration screen F11 To select the functions and features
screen
At almost all screens in Tally
NAVIGATION KEYS
Keys Functionality Availability
Pg up To display previous voucher during voucher entries/alter
At voucher entry and alteration screen
Pg dn To display next voucher during voucher entries/alter
At voucher entry and alteration screen
Enter To accept anything typed into a field. To accept a voucher or master
At almost all areas in tally
Esc To remove what you typed into a field. To come out of a screen
At almost all screens in tally
Shift+Enter Collapse next level details At voucher register screen and Trail balance report
CTRL+Enter To alter a master while making an entry or viewing a report
At all Reports
SPECIAL FUNCTION KEY
Function Key Functionality Availability
ALT+F1
To close/shut the company At all menu screens
To view detailed report At almost all report screens
To explode a line into details At almost all screens in tally
To select the inventory voucher to alter At Accounting Voucher Creation & Alteration screen
ALT+F3 To select the company info (To create/alter/shut a company)
At gateway of Tally screen
ALT+F4 To select the purchase order voucher At Accounting/Inventory Voucher Creation & Alteration screen
ALT+F5
To select the sales order voucher At Accounting/Inventory Voucher Creation & Alteration screen To view monthly and quarterly report At almost all report screens in Tally
ALT+F6 To select the Rejection out voucher At Accounting/Inventory Voucher Creation & Alteration screen
ALT+F7
To select the stock journal voucher At Accounting/Inventory Voucher Creation & Alteration screen To accept all audit list At tally audit listing screen
ALT+F8
To select the Delivery Note voucher At Accounting/Inventory Voucher Creation & Alteration screen To view the columnar report At ledger voucher screen
ALT+F9 To select the Receipt Note voucher At Accounting/Inventory Voucher Creation & Alteration screen ALT+F10 To select the physical stock voucher At Accounting/Inventory Voucher
Creation & Alteration screen ALT+F12 To filter the information based on
monetary value (Range)
At almost all report screens
CTRL+M To access the Gateway of Tally
CTRL+N To access the calculator/ODBC server frame
CTRL+A To accept as it is on the screen/Saving CTRL+Q Quit the screen without making any change CTRL+V Voucher Mode
CTRL+Enter To alter a master while making an entry or viewing report Enter To accept information typed into a field
Esc To exit a screen
ALT+C Create master at a voucher screen ALT+D Delete single ledger/Voucher ALT+X Cancel Voucher
ALT+P Print
ALT+I Print preview ALT+2 Duplicate Voucher
F1 Select company/ Accounts Button ALT+F1 Inventory Button/Shut Company CTRL+F1 Payroll Button
ALT+F3 Company Info
F2 Date
ALT+F2 Period
CTRL+F2 Order Button
Problem: 1
1. Mr. Ram started business with cash Rs. 3, 00,000. 2. Purchases 10 Ctv’s from ABC & Co @ Rs. 15,000 each. 3. Purchases 15 Ctv’s for cash @ Rs. 15,000 each.
4. Paid carriage on purchases Rs. 500. 5. Cash sales 10 Ctv’s @ Rs. 20,000 each.
6. Sales to Shalimar & co 15 Ctv’s @ Rs. 20,000 each. 7. Paid salaries Rs. 4,000 & Rent 1,000.
Answers:
Gross Profit: 1, 24,500 Net profit: 1, 19,500 B/S: 5, 69,500
Problem: 2
