Lesson 1 Fundamental of Tally

Tally.ERP 9 Start-up

You can start Tally.ERP 9 using any of the following ways: Click on Start > Programs > Tally.ERP 9 >
Tally.ERP 9 icon or Double-click on the Tally.ERP 9 on the desktop
Select Alt+f3

Mouse/ Keyboard Conventions

While working with Tally.ERP 9, you may use the following conventions.
Click : Press the left mouse button

Double-click : Press and release the left mouse button twice, without moving the mouse pointer off the

item
Choose : Position the mouse pointer on the item and click the left mouse button

Select : Position the mouse pointer on the item and double-click the left mouse button

Press : Use the keys on the keyboard in the combination shown

Fn : Press the function key

Fn : Press ALT + function key

Fn : Press CTRL + function key

Switching between Screen Areas

Quitting Tally.ERP 9 To toggle between this screen and the Calculator area at the bottom of the screen,
press Ctrl+N or Ctrl+M as indicated on the screen To minimize the Info. Panel, press Close (X) button on
the right side of the Info. Panel and to restore, click ^ appearing on the bottom centre of the screen
Press ESC until you see the message Quit? Yes or No? Press Enter or Y, or click Yes to quit Tally.ERP 9

Alternatively, to exit without confirmation, press Ctrl+Q from Gateway of Tally You can also press

Enter, while the option Quit is selected from Gateway of Tally

Create a Company
Go to Gateway of Tally > Company Info. > Create Company
Once the Company creation screen is accepted, the Gateway of Tally Screen loads. The Gateway of Tally
screen is displayed as shown:

Select a Company
To Select a Company, Go to Gateway of Tally > press Alt+F3 (Company Info.) > Select Company Tally.ERP
9 displays the List of Companies screen with all the companies created in an alpha-betical order Select the
required company from the list In case two or more companies are loaded, click on the company which
you need to work on. The selected company will be highlighted and will appear on top of the list
Alter a Company
To Alter a Company, Go to Gateway of Tally > press Alt+F3 (Company Info.) > Alter Select the company
which you need to alter from the List of Companies and press Enter to view the Company Alteration screen
Alter the company details as required and accept the screen

Shut a Company
To Shut a Company, Go to the Gateway of Tally > press Alt+F3 (Company Info.) > Shut Company Select
the company which you need to shut from the List of Companies You can also use Alt + F1 to shut a
Company from the Gateway of Tally screen You can also access these functions, by selecting the
appropriate button from the button bar

F11: Company Features

The F11:Features are company-specific whereas, F12: Configurations are applicable to all the companies in a
data directory. You can press F11 (functional key) from any screen of Tally.ERP 9 or you may also click on the
F11: Features button available in the button bar, to enable the required features. The F11: Features is divided
into the following major categories: Accounting Features Inventory Features Statutory & Taxation
Tally.NET Features Add-On Features

Go to Gateway of Tally > press F11: Features

F1: Accounting Features
The Accounting Features consists of configurations/ functionality, which
generally affects accounting transactions and reports. The accounting
features are further sub-divided into six sections, namely:
General Outstandings Management Cost/ Profit Centres
Management Invoicing Budgets/ Scenario Management Other
Features Go to Gateway of Tally > F11: Features > Accounting Features
or click on F1: Accounts The F1: Accounting Features screen is displayed
as shown:
F2: Inventory Features
The Inventory features comprises of configurations/ functionality pertaining to Inventory transactions and
reports. The Inventory features are further sub-divided into seven sections, namely: General Storage &
Classification
F2: Inventory Features
The Inventory features comprises of configurations/ functionality pertaining to Inventory transactions and
reports. The Inventory features are further sub-divided into seven sections, namely: General Storage &
Classification
Order Processing Invoicing Purchase Management Sales Management Other Features Go to
Gateway of Tally > F11: Features > Inventory Features or click on F2: Inventory The F2: Inventory Features
screen is displayed as shown:

F3: Statutory & Taxation

The Statutory & Taxation features comprises of configurations/ functionality pertaining to statutory
compliances available in Tally.ERP 9. The Statutory features are country specific and strictly depends upon
the Country selected in the Company Creation screen. The following features are available, when India is
selected in the Statutory Compliance for field in the Company Creation screen. Excise Value Added Tax
Service Tax Tax Deducted at Source Tax Collected at Source Payroll Income Tax MCA Reports

Go to Gateway of Tally > F11: Features > Statutory & Taxation or click on F3: Statutory The F3: Statutory &
Taxation screen is displayed as shown:

F12: Configurations
In Tally.ERP 9, the F12: Configuration options are
provided for Accounting, Inventory, Payroll, E-
mailing, Data, Printing options, TDL etc., and are
user-definable as per your requirements. The F12:
Configuration options are applicable to all the
companies residing in that Tally.ERP 9 Data
Directory. The F12: Configuration options vary
depending upon the menu display. i.e., if you press
F12: Configure from Voucher entry screen, the
respective F12: Configuration screen is displayed. Go
to Gateway of Tally > press F12: Configure The
Configuration screen is displayed as shown:
General Configuration
In General Configuration screen, you can configure Country Details, Style of Names, Dates and Numbers in
the General configuration screen. Go to Gateway of Tally > F12: Configure > General
Numeric Symbols
In Numeric Symbols screen, you can configure Number Styles and Symbols used to represent Positive
Numbers, Negative Numbers, Debit Amounts and Credit Amounts by using Numeric Symbols. Go to Gateway
of Tally > F12: Configure > Numeric Symbols

Accts/ Inventory Info. Configuration

The Accts/ Inventory Configuration is used to enable additional settings / options/ configurations in
Accounting and Inventory masters. You can also configure Accts/ Inventory Info. configurations from
Accounts and Inventory voucher entry screens, by pressing F12: Configure. Go to Gateway of Tally > F12:
Configure > Accts/Inventory Info.
Voucher Entry Configuration
Voucher Configuration is used to configure additional settings and options during voucher entry. Go to
Gateway of Tally > F12: Configure > Voucher Entry

Lesson 2: Fundamental of tally -2

Invoice / Orders Entry Configuration

The Invoice entry and Order entry screens can be configured for additional information such as export details,
shipping details, etc. Go to Gateway of Tally > F12: Configure > Invoice / Orders Entry
Payroll Configuration
The Payroll Configuration screen allows you to enable additional configurations for entering infor-mation
related to Statutory Details, Passport & Visa Details, Contract Details and Resigned / Retired Employees. Go
to Gateway of Tally > F12: Configure > Payroll Configuration
Banking Configuration
Printing Configuration This configuration helps you to configure settings related to Bank Reconciliation
Statement. Go to Gateway of Tally > F12: Configure > Banking Configuration
This configuration helps you to configure the print settings for various Accounting, Inventory vouchers and
other MIS related statements. Go to Gateway of Tally > F12: Configure > Printing

E-Mailing Configuration
Data Configuration This configuration helps you to define settings related to email such Email Server,
Server Address, Authentication details and so on. Go to Gateway of Tally > F12: Configure > E-Mailing
This configuration helps you to define location of Language Files, Tally Configuration File, Export Files, Data
Files and details of the companies to be loaded on startup. Go to Gateway of Tally > F12: Configure > Data
Configuration
TDL Configuration
This screen provides details regarding TDL Configuration viz., Local TDLs, Account TDLs & Remote TDLs
enabled for the product. Go to Gateway of Tally > F12: Configure > TDL Configuration
Advanced Configuration
This configuration helps you to specify Client/Server Configuration, Connection configuration and Proxy
configuration for ODBC connectivity and Synchronisation of Data. Go to Gateway of Tally > F12: Configure >
Advanced Configuration

Lesson 3: advanced Financial Management

3.1 Multiple companies Tally.ERP 9 provides you the capability to generate numerous advanced
and critical Management Information system reports and analytical tools, thereby facilitating better
management, effective control and well-informed decisions. Following are the some of salient features,
which makes Tally.ERP 9 best for advanced financial management.
􀂇Multiple companies
􀂇Multi-Currency
􀂇Multiple financial year
􀂇Multi-columnar reporting
􀂇Memo Vouchers
􀂇Postdated Vouchers
􀂇User defined Vouchers
􀂇Sales and Purchase extracts
􀂇Cash Flows
􀂇Daily Balance & Transaction Values
􀂇Interest calculations
􀂇Percentage Based Reporting
In Tally.ERP 9 you can create and maintain multiple companies. Not only, can you maintain all the
companies / branch companies in Tally.ERP 9, but you can also maintain your personal accounts as well.
Tally.ERP 9 allows to handle Companies concurrently i.e. You can load more than one company and
work on one or all of the companies loaded simultaneously, by toggling between them, as and when
required. Tally.ERP 9 also allows you to make use of group company feature wherein you can create a
group company with member companies and generate consolidated reports for the entire group as well
as individual constituent company. Why is Tally the best?

To create Multiple Companies,

To create Group Company, Go to Gateway of Tally >Create Company, 􀂇Specify Company Name
and other related details 􀂇Once you create a company, create another new company (from Gateway of
Tally > Alt + F3 (Company Info.) and specify the details as explained

3.2 Multi-Currency Go to Gateway of Tally >Company Info. (Alt+ F3) >Create Group Company
􀂇Specify name of the Group Company and other information. 􀂇Select companies (already created) to
be grouped together A group company is automatically created, once you have created more than one
company. Now, you can load and work on any one of the companies.
Many Organizations have transactions in more than one currency. Such transactions have to be recorded either in
the base (home) currency or in the foreign currency. If the transactions are recorded in home currency, the rate at
which the foreign currency is exchanged should be recorded as well. Tally.ERP 9 allows you create and transact in
multiple currencies. Tally.ERP 9 uses the term base currency for the currency in which your account books are
kept. Foreign Exchange is used inter-changeably with foreign currency. The base currency is specified while
creating the company. Tally.ERP 9 makes it easy to manage multiple currencies, automatic calculations of
exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account,
etc. You can generate an invoice for your foreign customers in their currency and also receive payments in the
same or different currency. The impact of gain or loss in Forex is reflected immediately. You can also view and
print Reports and Ledger Accounts in the currency of the transaction that has been entered or base currency.
To use Multi-currency feature,
Step 1 : Enable Multi-Currency Feature Go to Gateway of Tally > F11: Features > F1: Accounting Features
Set Allow Multi Currency to Yes
Step 2 : Create Multi-Currency Go to Gateway of Tally > Accounts Info. > Currencies > Create
􀂇Enter the Currency Symbol and other details
Step 3: Define Rate of Exchange Go to Gateway of Tally > Accounts Info > Currencies > Rate of Exchange.
􀂇Specify the Date for Rate of Exchange and other details (Standard, Selling and Buying). You can now enter

transactions in the currency of your choice.

To view report in Multi-Currencies,
􀂇Select any report (i.e., Balance Sheet, Profit and Loss A/c, Trial Balance or any other report)

􀂇Select Alt + C (New column)

􀂇 Select the required currency (in which you want to view the report) 􀂇 Specify the Rate of Exchange for

the selected currency and press Enter

3.3 Multiple financial years
In Tally.ERP 9 , you can have any number of financial years for one company. At the time of creating the company,
it is necessary for you to mention the beginning of the financial year. There-after, you can maintain accounts for
any number of periods. For example, assume you have created a Company starting from 1st of April 2008. Now, if
you wish to change to the next financial year, you have to select F2: Period (Alt+F2), from Gateway of Tally and
specify the date range as 1-4-2009 to 31-3-2010 and continue with the transactions for the next financial year.
Once you have information for multiple years in a single company you can easily toggle between different financial
periods, by selecting F2: Period (Alt+F2) option or can view reports for a period which could span across multiple
financial years, for e.g. you can view a report consisting of transactions for the second half of the previous financial
year and first half the current financial year.

3.4 Multi-columnar reporting

In Tally.ERP 9, you can compare information using multi-columnar reports. You can view / compare information
for multiple periods (year, month, quarter or any specified period), multiple currencies and so on for the same
company or compare information for two or more companies in the same screen without toggling between
different periods / companies. This flexibility and ease in comparison of information will help you to do meaningful
analysis and bring out any exceptions immediately. To view a Multi-Columnar Report
􀂇Select any report (e.g. Balance Sheet)
􀂇Select (Alt + N) Auto Column
􀂇Select any option (company, year, month, quarter etc) and press Enter Tally.ERP 9 now displays comparisons

based on the option selected.

Note-You can also select a date range, by pressing Alt+C (New Column) and specifying the period and then compare data of
companies.

3.5 Memo Vouchers

Memo Vouchers are non-accounting vouchers and entries passed using such vouchers do not affect the books of
accounts. Memo vouchers are used when you have to make suspense payments or make a transaction for which
you do not have complete information. In Tally.ERP 9, such vouchers are not posted to ledgers but stored in a
separate register. However, you may modify or convert memo vouchers to regular vouchers, when you decide to
bring them into your books.

To enter a Memo Voucher,

Go to Gateway of Tally >Accounting Vouchers

􀂇Press Ctrl+F10 (F10: Memos)

􀂇Complete the transaction and save Memo Vouchers can be effectively used in creating Scenarios. Entries made

through these vouchers become a part of a scenario management and you can view reports on the scenarios by
including memo vouchers.
To view the Memorandum Register,
Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers 􀂇Select a month or Click F2:
Period to specify a date range for viewing the report for differ-ent periods.
3.6 Postdated Vouchers

To enter a Post dated Voucher,

To view Post dated vouchers, Tally.ERP 9 provides the capability to enter vouchers in advance for
future transactions, that are definite in nature. The vouchers marked as Post dated does not affect the
books of accounts till the date specified in the voucher. This facility is extremely useful when the user has
issued or received post-dated cheques and does not need to modify the voucher to reflect the transaction
on a particular date. Go to Gateway of Tally >Accounting Vouchers > select F5: Payment 􀂇Click Ctrl
+ T (Post Dated) 􀂇Complete the transaction and save
Go to Gateway of Tally >Display > Exception Reports > Post-Dated Vouchers 􀂇Select a month or Click F2: Period
to specify a date range for viewing the report for differ-ent periods.

3.7 User defined Vouchers

To create a new Voucher Type, Tally.ERP 9 provides 18 predefined vouchers and also allows you to
create new Accounting as well as Inventory vouchers types, as per your requirements. For example, you
can further classify payment vouchers by creating vouchers by the name Bank Payment and Cash
Payment Vouchers. You can also set the voucher numbering as per your needs, which can be either
automatic numbering or manual numbering or have no numbering at all. Further, you can also assign
Prefix and Suffix for voucher numbers and choose to restart numbering either from beginning of the year
or month and so on.
Go to Gateway of Tally > Accounts Info. > Voucher Types > Create
􀂇Enter the voucher name, type, specify the method of numbering, activate or deactivate the other functions as

per needs.
3.8 Sales and Purchase extracts

To generate Extract of Purchase Register, In Tally.ERP 9, you can generate extract of the report on
Sales and Purchase Registers. The extract report provides you consolidated figures for both debit and
credit balances for all groups and ledgers. With this report you get the complete Sales / Purchase
Turnover figures for any period.
Go to Gateway of Tally > Display > Accounts Books > Purchase Register
􀂇Select any month

􀂇Click F6: Extract

Note-To generate day-wise extract of Purchase, in F12: Configure of the Purchase Register screen, set Periodicity to use to
Daily.

3.9 Cash Flows

To View Cash Flow Summary, Tally.ERP 9 provides you with a cash flow statement to track the
movement of cash flow i.e. cash inflows as well as cash outflows (both cash & bank included) of your
business. The report also displays a net flow for any period.
Go to Gateway of Tally > Display > Cash/Funds Flow > Cash Flow
􀂇Select a month
Note-􀂇 to generate Daily Cash Flow Statement, press F4.
􀂇 to view information on the average cash inflow/out flow for any period, in F12: Configure, activate average
details.

3.10 Daily Balance & Transaction Values

You can view cash/ bank books and ledgers on a day-wise basis to get information on the total transaction value
and closing balances. You can also view daily average details as well as high and low details for the month in the
same report.
To View Daily Break up of Cash/Bank Books or Ledger,
􀂄Click F6: Dly Brk-up
􀂄Click F12: Configure, set Show Average Details and Show High/Low Details to Yes Go to Gateway of Tally >

Display > Accounts Books > Cash/Bank Books or Ledger

􀂇Select the ledger account (Bank/Cash or any other ledger)

􀂇From the Ledger Monthly Summary report, select a particular month and press Enter

􀂇In the Ledger Vouchers screen

Tally.ERP 9 displays a screen showing the Average as well as High and Low details for the selected ledger. From
the above report, you can also drill down to voucher level for any kind of verification/alteration.

3.11 Interest Calculations

Tally.ERP 9 provides a powerful capability to calculate interest on outstanding balance amounts and oustanding
bills/invoices/ transactions (Receivables and payables) or on any delayed payments so on. You can view the impact
of interest accumulated against each ledger and also against each trans-action. Although, Tally.ERP 9 provides
exhaustive information on interest implications, the interest amounts are not brought into books. You may choose
to book the interest calculated as per your requirements.
Interest is calculated either on simple or compound basis and accounted into the books, by using debit notes for
interest receivables and credit notes for interest payable. The Activate Interest Calculation field is displayed in the
Ledger Creation screen only, if Activate Interest Calculations is set to Yes in F11: Accounting Features. Set this
field to Yes for each specific ledger account for which interest is to be calculated.
Step 1: Enable Interest Calculation
􀂇In F11: Accounting Features, set parameter Activate Interest Calculation (use advanced parameters) to Yes

Step 2: Enable Ledger for Interest Calculation Go to Gateway of Tally > Accounts Info->Ledger-> Alter. 􀂇Select a
ledger for which interest calculation has to be activated.
􀂇Set Activate Interest Calculation to Yes (Set this field to Yes for each specific ledger account for which interest

is to be calculated.
􀂇Specify information regarding Rate of interest (%) and Style as per requirements
Tally.ERP 9 automatically calculates interest for ledgers for which interest calculations option is activated. To view
Interest Calculation Report, Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations >
Receivables / Payables/Ledger
Note-To specify or change the rate of interest at the time of entering the transaction, set Override Parameters for each
Transaction to Yes in the Ledger creation mode.

3.12 Percentage Based Reporting

In Tally.ERP 9, you can generate percentage based reporting for financial statements like Balance Sheet, Profit &
Loss, Cash Flow, Sales register etc. For example, to view percentages for all groups in the Balance Sheet, set Show
Percentages to Yes in F12:Configure.
Lesson 4: Basic Inventory Management
Tally.ERP 9 provides you the capability to record inventory transactions without changing the way you do your
business. It provides numerous predefined Inventory vouchers to suit your business requirements and flexibility to
create unlimited stock items, use simple to complex conversion units and generate invoices with the required
information and dimensions. Following are the some of salient features, which makes Tally.ERP 9 best for basic
inventory man-agement.
􀂇Flexible units of Measure

􀂇Flexible Invoicing

􀂇Unlimited Grouping & Categorization of Stock items

􀂇Voucher Classes to expedite voucher Entry

􀂇Separate Actual and Billed Quantities

􀂇Gross Profits and Consumption Report 􀂇

Use Stock Item Names and / or Part Numbers

􀂇POS Invoicing

4.1 Flexible units of Measure

The instances of stock items being measured in different Units of Measure are common. In Tally.ERP 9 you can
define multiple units as per your requirements. It is also possible that an item could be transacted in one or more
units of measure, for e.g. Sugar is purchased in tons and sold in either kgs or packets. Tally.ERP 9 allows you to
transact in all the three units of measure for the same item. This configuration allows you to maintain stock items
in both Main Units as well as Alternate Units. Tally.ERP 9 allows creation of compound as well as alternate units
for a stock item. You can define a Compound unit as a relation between of two simple Units, for e.g. create a
compound unit namely, Ton of 100 kgs. You can view Stock Summary report in Tail Units also (here in this case,
kgs)
To create Units of Measure,
To activate and create Alternate Units, Go to Gateway of Tally > Inventory Info. > Units of Measure
> Create
􀂇Select Unit Type

􀂇Specify Unit name

Go to Gateway of Tally > Inventory Info. > Inventory Info > Stock Item > Create
􀂇Press F12: Configure (Inventory Info.) and activate Use ALTERNATE UNITS for Stock Items

􀂇Enter Alternate Units

To create Compound Units, create two simple units of measure (as mentioned earlier) and then
To view Reports in Alternative Units, Go to Gateway of Tally > Inventory Info. > Units of Measure->Create.
􀂇Select Unit Type as Compound
􀂇Select First Unit and enter Conversion units

􀂇Select the Second Unit

Go to Gateway of Tally > Stock Summary
􀂇Press F12: Configure, set Show Opening balance, Goods Inwards, Goods Outwards and Closing Balance to Yes
􀂇Set Show using Alternate Units to Yes

4.1.1 Tail Units

Go to Gateway of Tally > Stock Summary

􀂇Press F12: Configure and set Show Tail Units of Compound Units to Yes. Now, Tally.ERP 9 displays compound

units of stock items in Tail units.

4.2 Flexible Invoicing

4.2.1 Sales Invoice

To enter an Invoice, In Tally.ERP 9, you have flexibility to invoice items or ledger accounts directly to
generate sales invoices. The details that you can include or exclude in an invoice is based on the
business needs for instance, you may want to print batch number, Manufacturing as well as expiry date,
additional description for items, show discounts on the invoice and so on.
Go to Gateway of Tally > Accounting Vouchers > Select Sales (F8)
􀂇Press F12: Configure, to activate or deactivate the features as per requirement

􀂇Enter all relevant information and save the voucher.

􀂇Press Alt + P (P: Print)
4.2.2 Separate Discount Column on Invoices

Tally.ERP 9 allows the user to enter discount for each and every Stock Item and also automati-cally calculates and
displays the discounted value in the invoice. To activate discount column in Invoicing
􀂇Press F11: Inventory Features > Set Separate discount columns for Invoices to Yes

4.2.3 Purchase Invoices

Tally.ERP 9 provides the option to enter purchase transactions in invoice format and hence entering vendor
invoices is made easy. When you enter purchase detailw in the invoice format, the stock items selected are
automatically updated in the stock summary. You can apportion addi-tional expenses, like taxes, freight etc., to
stock items which affects their valuations. To enable Purchase Invoices in Invoice Format,
􀂇Press F11: Inventory Features > Enable Allow Invoicing and Enter Purchases in Invoice Format to Yes To enter

Purchase Invoices in Invoice Format, Go to Gateway of Tally > Accounting Vouchers > Select Purchase (F9)
􀂇Select Party's A/c Name

􀂇Select Stock Items

􀂇Specify Qty and Rate, the value is automatically calculated

􀂇Select taxes, freight & other expenses (if any).

4.3 Unlimited Grouping & Categorization of Stock items

4.3.1 Stock Group
To create Stock Groups In Tally.ERP 9, you can classify all common stock items to a single group, for
instance Raw materials, Components Consumables, Desktop computers, Scanners etc. Grouping of
stock items facilitates effective and substantive reporting on stock items. In Tally.ERP 9, you can create
unlimited levels of groups for in-depth analysis. Tally.ERP 9 allows unlimited grouping of stock Items to
Stock Groups or subgroups at any point of time. It also allows to categorize stock items based on their
specific nature or type or brand in order to generate customized inventory reports.
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create
􀂇Enter Name for the Group (Specify the parent group of the current group).

􀂇Enter other details and save screen

To view Stock Group Summary Reports,

Go to Gateway of Tally > Display > Inventory Books > Group Summary 􀂇Select any group or select Primary to
display all Stock Groups
4.3.2 Stock Category
To enable Stock categories, In many cases, you may want to classify stock items which are similar in
nature but are grouped under different Stock Groups. Tally.ERP 9 provides you a feature namely, Stock
Categories, which allows parallel classification of stock items to separate categories besides grouping.
For example, you may group Television sets of different sizes based on their size viz., TV's of 14 inches,
21 inches, 29 inches and so on. But however, if you require reports on, which brand sells more. In such
cases, you require parallel classification of stock items to stock categories viz., Sony, Panasonic, LG,
Samsung, Philips, etc. In Tally.ERP 9 you can create stock items and group under the respective groups
and parallely classify them under the respective Stock Categories. You could however, interchange the
stock category or stock group based on your convenience and reporting requirements.
Go to Gateway of Tally > F11: Inventory Features
􀂇Set Maintain Stock Categories to Yes
To create Stock Categories,
To view Stock Category Report, Go to Gateway of Tally > Inventory Info. > Stock Categories >
Create
􀂇Specify the Name for the Category

􀂇Select Primary or the parent Stock Category from the list

Go to Gateway of Tally > Display > Statements of Inventory > Categories
􀂇Select the required Stock Category or select Primary to display all Stock Categories

4.4 Voucher Classes to expedite voucher Entry

Tally.ERP 9 provides an option to automate and expedite voucher entry with the help of Voucher Classes. You can
use this facility for most voucher types (e.g. Payment, Receipt, Sales etc) to make data entry easier and faster. This
facility acts as a control, to restrict users from choosing any other ledger accounts other than those to which the
transaction needs to be posted and thereby minimizes errors during data entry.
For example, you may create Voucher Class under Receipt Voucher Type to automate Bank Receipts or
Bank Payments under Payment Voucher Type. You will find the procedure for creating voucher classes
for Bank Receipts is the same as that for Bank Payments. The only precaution is that during transactions,
4.4.1 Voucher Classes for Sales Invoice Voucher classes for invoices can be used to significantly
automate ledger entries where tax calculations, additional charges, rounding off etc., are involved. You
can also specify percentages for additional accounting allocations like taxes, freight and other charges.
Based on 􀂇Select the required groups under Exclude these Groups and Include these 􀂇Specify the
allocations in % between Sales and Tax Ledgers in Default 􀂇Select additional Ledger accounts which
are involved in the voucher entry viz.,

4.5 Separate Actual and Billed Quantities Go to Gateway of Tally 􀂇4.5 Separate
Actual and Billed Quantities
There are situations when you have to invoice the customer for a particular quantity but actually supply a
different quantity. Tally.ERP 9 allows you to handle such situations with the hlep of Use different Actual
and Billed Qty option. Using this option, you can specify different acutally and billed quantities in the
same invoice. The Actual quantity updates the stock balances and Billed quantities affect the books of
accounts. This feature is widely used to record supply of free items. further, this option will be useful
when you have to supply free item(s) for sale of a fixed number of goods or if you have to supply free
samples to your customer.To enable Actual and Billed Quantity in Invoices,
􀂇Press F11: Inventory Features, set Use different Actual and Billed Qty to Yes To enter Actual and
Billed Quantity in Invoices, Go to Gateway of Tally > Accounting Vouchers > F8 (Sales in Invoice
mode)
Enter quantities under Actual and Billed Qty columns
􀂇Specify the Rate & other details
􀂇Save transaction.
Note-The Actual Qty affects the stock balances while the Billed Qty affects only the Books of Accounts.

4.6 Gross Profits and Consumption Report

To view Consumption Report, Consumption basically means, the quantity / value of materials used
(consumed) in the process of manufacturing, selling or written off. Tally.ERP 9 automatically tracks the
movement of materials consumed. You can view the consumption report along with gross profit for every
item.
Go to Gateway of Tally > Stock Summary > F7 (Show Profits)
􀂇Press Alt+F1 for detailed mode
4.7 Use Stock Item Names and / or Part Numbers
To create Part Number for a Stock Item Stock items can be created in Tally.ERP 9 by specifying their
actual names as well as by their Part Numbers. This makes it convenient for many users dealing in
certain industries (like Computer/ Automobile Industries) where items are generally identified by their Part
Nos. You can also view reports for all stock items with their actual names or by part numbers or both.
Go to Gateway of Tally > Inventory Info. > Stock item > Alter (Create, if the Item is not existing)
􀂇Select the required Stock item
􀂇Press F12: Configure and set Use PART NUMBERS for Stock Items to Yes
􀂇A new field Part No is displayed in Stock Item Creation/Alteration screen

To view Stock reports with Part Number,

Go to Gateway of Tally > Stock Summary (or any other Inventory reports)
􀂇Press F12: Configure, and set Appearance of Stock Item Names as Part No. Only
􀂇Press Enter to save.
Now the stock items are displayed as Part Nos instead of their names.
4.8 POS Invoicing
A Point of Sale is either a retail shop, a check-out counter in a shop or any other location where sales transactions
take place. Tally.ERP 9's POS feature is fully integrated with Accounts and inventory functions. You can POS Invoice
with Cash and Credit/Debit card transactions and effec-tively manage gift coupons, vouchers, discount coupons
etc. The POS feature in Tally.ERP 9 enables you to print invoices in continuous or 40 column modes. It automates
your data entry and calculations during invoicing. You can also generate standard and POS specific reports such as
Cash Registers, POS Registers, and Inventory Reports etc.

To activate POS Invoicing,

Go to Gateway of Tally > Accounts Info. > Vouchers Type > Create
􀂇Type name of the voucher type

􀂇Select Sales as voucher type and other details

􀂇Set Use for POS Invoicing to Yes

􀂇Type the details in Message 1 & Message 2

􀂇Specify the details in Default Print Title and save screen

To record POS transaction,

Go to Gateway of Tally > Accounting Vouchers > F8: Sales
􀂇Select name of the POS Invoice

􀂇Enter details of the voucher

􀂇Save screen
To view POS Register,
Go to Gateway of Tally > Display > Account Books > POS Register You can view the sales made through Gift
Vouchers, Credit/Debit Card Payment, Cheque, Cash and Total details.
Lesson 5: advanced Inventory Management
Tally.ERP 9 provides you the capability to record inventory transactions without changing the way you do your
business. It provides predefined Inventory vouchers to suit your business requirements besides allowing you to
create userdefined voucher types and flexibility to track your inventory at any point/stage/process and numerous
other features. Following are the some of salient features, which makes Tally.ERP 9 best for advanced inventory
management.
􀂇 Stock Query

􀂇 Multiple Warehouses / Locations:

􀂇 Sub-Godowns

􀂇 Stock transfers to Godowns

􀂇 Multiple Stock Valuation

􀂇 Batch-wise / Lot-wise & Expiry Date Handling

􀂇 Sales and Purchase Order Processing

􀂇 Tracking Inventory

􀂇 Rejection In and Rejection Out

􀂇 Additional Costs Incurred on Purchase

􀂇 Unlimited Stock Item Classification

􀂇 Bill of Materials

􀂇 Tracking Additional Cost of Manufacturing

􀂇 Job Costing

􀂇 Stock Ageing Analysis

􀂇 Batch Related Stock Ageing

􀂇 Price List with Multi Price levels

􀂇 Reorder Levels

􀂇 Movement Analysis (Partywise/ Itemwise/ Stock Groupwise)

􀂇 Profitability Analysis (Stock Groupwise / Stock Itemwise / Invoicewise / Locationwise

Stock Query
Stock query offers an option for the user to get a good idea of what is the stock position of a par-ticular item as
well as items that belong to the same category or group. The stock query report displays not only the item but also
items within the same category or group. It displays the Stock Item details such as closing stock quantities and
value and also in which Godown it is available, standard selling price, Last purchase and sale quantity and prices,
batch details. The user can configure the screen to show remarks also. In F12: Configure screen of the Stock Item,
activate all the related parameters to Yes as shown
Enter the required details in the stock item alteration screen as shown here.

To view Stock Query Report,

Go to Gateway of Tally > Display > Statements of Inventory > Stock Query
􀂇Select Item from List of Items, the Stock Query report will appear
5.2 Multiple Warehouses / Locations
A Warehouse/Godown is a place where stocks/materials are stored. It could be either locations or even Storage
racks. Your company could be maintaining multiple warehouses/godowns and hence would require stock
statements for the individual warehouses. Tally.ERP 9 offers you the capability of maintaining multiple
Godowns/Locations (Warehouses). It allows you to create multiple Godowns (warehouses) and at the time of
accounting an inventory transaction (sales, purchase, stock Journal etc), you can specify Godowns for stock items
to be stored or des-patched. For Example., if you enter a purchase transaction, you will have to specify the
Godown where the item will be stored and in the similar manner while entering a sales transaction, you will have
to specify the godown from where the goods are issued. Tally.ERP 9 also allows you to transfer materials from one
godown to another. You can view stock reports for a godown or compare a godown with another and also get a
consolidated stock report.
You can also create godowns to keep track of items issued for job works / Sub-contracts and record the
items issued to and received from job works. Each Job Work / Sub-Contract is treated as a godown. You
can also track the third party stocks viz., details of stocks sent, consumed and balance lying with the Job
Work 􀂇Press F11: Inventory Features, set Maintain Multiple Godowns to Yes To create a Godown,
Go to Gateway of Tally > Inventory Info. > Godowns > To Go to Gateway of Tally > Display >
Statements of Inventory > Godowns 􀂇􀂇Tally.ERP 9 displays Stock Summary for that particular
Godown
Tally.ERP 9 allows you to compare multiple Godowns. To compare Godowns, Go to Gateway of Tally >
Display > Statements of Inventory > Godowns
􀂇Select any Godown from the List of Godowns
􀂇Press New Column (Alt + C)
􀂇Select another godown from List of Godowns, Tally.ERP 9 now displays Godowns details in a
columnar format
􀂇Or you may also press Alt+N and select Godowns from Column Details drop down
􀂇Set Total Column to Yes

5.3 Sub-Godowns
Using Tally.ERP 9, you can create Sub-Godowns (multiple levels of Godowns). While creating sub-
Godowns you have to specify name and the parent Godown under which it has to be created. Tally.ERP
9 also allows you to create Virtual Godowns. Virtual Godowns do not allow storage of materials. They are
useful when a city has more than one warehouse Godowns, e.g. in a city where you have 2 warehouses
you can have Godown such as Jayanagar or Indiranagar and Bangalore being the city is setup as
Godown where Allow Storage of Material is set to No. In this case, Bangalore is a virtual godown,
logically as it does not exist, but still you can generate a stock statement for Bangalore godown.
5.4 Stock transfers to Godowns

To transfer materials (Stock Transfer), Tally.ERP 9 allows you to transfer materials from one Godown to
another. The transfer of materials is done using Stock Journals. Tally.ERP 9 also provides you the facility
to create voucher class, which help in simplifying the transfer of materials between godowns.
Go to Gateway of Tally > Inventory Vouchers > Alt+F7 (Stock Journal)
􀂇Select Stock Item in Source column and the Godown particulars
􀂇Select Stock Item and Godown particulars in Destination column

To transfer materials using Voucher Classes,

Step 1: Create Voucher Class Go to Gateway of Tally > Accounts Info./Inventory Info. > Voucher
Types > Alter
􀂇Select Stock Journal, tab down to Name of Class field and specify Class name (e.g. Godown
Transfer)
􀂇Set Use Class for Inter-Godown Transfers to Yes
Step 2: Create Stock Transfer Journal Voucher Go to Gateway of Tally > Inventory Vouchers >
Alt+F7 (Stock Journal)
􀂇Select Godown Transfer Class from Voucher Class List
􀂇Select Destination Godown details, stock items, Source Godown
5.5 Multiple Stock Valuation

To set Valuation Method for a stock item, In Tally.ERP 9, you can evaluate the value of inventories
using multiple Stock Valuation methods viz., Average Cost, Average price, Last Purchase cost, Last
Sales price, FIFO etc. Tally.ERP 9 offers you the flexibility to have different stock valuation methods for
every item or the entire stock of the company which is valued based on the specific type of costing
method, chosen at the time of reporting. The user is allowed to view different methods of stock valuations
in multiple columns.
Go to Gateway of Tally > Inventory Info. > Stock Items > Alter
􀂇Select the Stock Item
􀂇Press F12: Configure and set Allow ADVANCED entries in Masters to Yes
􀂇In Stock Item Alteration, specify the required Costing Method

To view Stock Summary in different Valuation Methods,

Go to Gateway of Tally > Stock Summary
􀂇Select Auto Column (Alt+N) and select the required Stock valuation methods in Auto repeat
columns.

5.6 Batch-wise / Lot-wise & Expiry Date Handling

Step 1: Enable Batchwise Details Tally.ERP 9 allows you to specify the Batch/Lot details for stock
items in order to identify and track the required inventory, as and when required for any kind of
reference/verification/sale/query and so on. it also allows you to specify the expiry dates and
manufacturing dates for stock items. This feature is extremely useful in Pharmaceutical, Chemical, Food
and other industries which deal in perishable / life saving items. Additionally, you can ensure that expiry
date items are not available for invoicing.
To enable Batchwise details for Stock Items, Go to Gateway of Tally > F11: Inventory Features
􀂇Set Maintain Batch -wise details to Yes
􀂇Enable Set Expiry Dates for Batches to Yes (if required)

Step 2: Create Batchwise Details

To specify Batchwise details for Stock Items, Go to Gateway of Tally > Inventory Info. > Stock Item >
Create/Alter
􀂇Specify Stock Item Name and other details
􀂇Set Maintain in Batches to Yes
􀂇Set Track Date of Mfg to Yes
􀂇Set Use expiry dates to Yes
􀂇Enter Opening balance with Batch & Rate details
Step 3: Create Vouchers using Batchwise
To create voucher using Batchwise details, for example, while entering Purchase entry,
􀂇Select the Stock Item

􀂇Specify the Batch No., Mfg Date and Expiry Date details

Step 4: Batchwise Reports

To view Stock Reports with Batchwise details, To create voucher using Batchwise details, for
example, while entering Purchase entry,
􀂇Select the Stock Item

􀂇Specify the Batch No., Mfg Date and Expiry Date details
Go to Gateway of Tally > Stock Summary
􀂇Press F12: Configure, set Expand all levels in Detailed Format to Yes and save the screen
􀂇Press Alt + F1 for detailed mode, Tally.ERP 9 displays all stock items along with their batch details

Step 5: Expiry Reports

To view Stock Reports with Expiry dates,
Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis
􀂇Select stock group and press Enter
􀂇The Stock Ageing Analysis report displays stocks with expiry date particulars

5.7 Sales and Purchase Order Processing

Step 1: Enable Order Processing Tally.ERP 9 facilitates Order processing right from placing the order
for supply of materials and receiving an order from the customers. It provides all the required vouchers,
features and options to process Purchase Orders as well as Sales Orders. Using the Order Processing
functionality of Tally.ERP 9, you can also generate reports for outstanding purchase and sales orders.
You may also e-mail the PO to suppliers from within Tally.ERP 9 using e-mail option.

To enable Order Processing, Go to Gateway of Tally > F11: Inventory Features

􀂇Set Allow Purchase Order Processing to Yes
􀂇Set Allow Sales Order Processing to Yes

Step 2: Create Purchase Order

Go to Gateway of Tally > Inventory Vouchers > Alt+F4 (Purc Order)
􀂇Select Party's Name from List of Ledger Accounts
􀂇Enter Order No.
􀂇Select Stock Item, Quantity, Rate details

Similarly, you can also create Sales Orders for orders received from Customers, by pressing (Alt+F5)
voucher entry screen.
To view Order Summary Reports, Go to Gateway of Tally > Display > 1:Enable Tracking Numbers
Generally, Invoices are sent along with the goods sold. However, there are certain instances,
where the goods are despatched first and then the invoices are sent later or vice versa. In such
cases, the stocks balances are not updated simulnateously with the books of accounts.
Tally.ERP 9 provides facility to use tracking numbers, wherein you can enter Receipt Note and
Delivery Notes with tracking numbers and track the receipt and despatch of goods. Although
these vouchers do not affect your accounts they are displayed in the Profit and Loss A/c under
the heading Purchase Bills to Come under Purchase Accounts and Sales Bills to Make under
Sales Accounts.
 To enable Tracking Numbers, Go to Gateway of Tally > F11: Inventory Features 􀂇Set Use
Tracking Numbers (Delivery/Receipt Notes) to Yes

Step 2: Book Additional Cost of Purchase

To enter Additional Cost of Purchase, Go to Gateway of Tally > Accounting Vouchers > F9 (Purchase
- As Voucher
􀂇Select an item
􀂇Specify Qty & Rate details and press Enter

Step 2: Enter Tracking Numbers

To record Receipt Note with Tracking Numbers, Go to Gateway of Tally > Inventory Info. > Alt+F9
(Receipt Note)
􀂇Select Party's Name from List of Ledger Accounts
􀂇Select Stock Items & specify Qty
􀂇Specify Tracking Number(s)
􀂇Complete voucher by entering all other detail In case of Delivery
Step 3 : View Bills Pending Report To view Sales Bills Pending Report, Go to Gateway of Tally >
Display > Statements of Inventory > Sales Bills 5.9 Rejection In and Rejection Out To
Enable Rejection Inward/Outward Notes, Materials that you purchase or sell might be returned due to
damages or other reasons. Tally.ERP 9 handles rejections from the customers or to the supplier with the
help of Rejections In (Sales returns) and Rejections Out (Purchase returns) Vouchers. These rejection
entries update only the inventory books. But in some cases, you would like to scrap those materials
which are Rejected In (i.e. Sales returns), in such cases you can activate Treat all Rejection Inwards
as Scrap to Yes, during stock item creation / Alteration To Go to Gateway of Tally > Inventory
Vouchers > Ctrl+F6 (Rej In). 􀂇Select the required Ledger Account
􀂇Select Party Ledger
􀂇Select the Stock Item (rejected / returned)
􀂇Select the respective Tracking Number
􀂇Enter the Qty and other details Similarly, you can enter Rejection Outwards by selecting Alt+F6 (Rej
Out) in Inventory Voucher entry screen and follow the same steps as explained above. Similarly, you can
enter Rejection Outwards by selecting Alt+F6 (Rej Out) in Inventory Voucher entry screen and follow
the same steps as explained above.
5.10 Additional Costs Incurred on Purchase
Method 1 :
Step 1: Enable Additional Cost of Purcahse When you make a purchase, you may incur additional
expenses like freight, handling charges, taxes and so on. This cost is also referred to as Landed Cost,
Tally.ERP 9 allows you to add these costs to the value of the product during voucher entry or later. These
expenses are sometimes included in the Supplier Invoice or directly borne by the buyer, in such cases
you have to book these expenses in order to ascertain the landed cost of the product and ultimately
which will help in determining the Item pricing and your margin. In Tally.ERP 9, you may book additional
cost incurred on purchases in two ways:
To enable Additional Cost of Purchase, Go to Gateway of Tally > F11: Inventory Features
􀂇Set Track additional cost of purchase to YesGo to Gateway of Tally > F11: Inventory Features,
􀂇Set Use Rejection Inward/Outward Notes to Yes

Tally.ERP 9 prompts for Additional Cost Details for screen for the Stock Items

􀂇 Select
Expenses ledgers like Freight, Packing and enter their rates 􀂇 Save the voucher
Method 2:
At times, it may happen that you have completed the
purchases entry and want to book additional costs later. In
such cases, follow the steps given below : Go to Gateway of
Tally > Accounts Info. > Ledgers > Create 􀂇In the Ledger
Master creation screen, set Inventory values are affected to
Yes
To book Additional Cost of Purchase
Go to Gateway of Tally > Accounting Vouchers > F5
(Payment) 􀂇Select additional costs Ledger Account (e.g.
Customs Duty, Taxes, Freight etc) 􀂇Select the required Stock
Item 􀂇Enter value for Amount in Item Allocations screen
􀂇Select other stock items and follow the same process The
above process automatically updates the value of the stock
item.
To view Report,
If you wish to view the additional cost details for stock items for
purchases Go to Gateway of Tally > Display > Inventory Books > Movement Analysis > Stock Item
Analysis 􀂇Select Stock Item from List of Items, Tally.ERP 9 displays details of item purchased
􀂇Press Enter to drill down to get information on Qty, Basic Rate & Value, Additional cost, total value and
effective rate etc.

5.11 Unlimited Stock Item Classification

Tally.ERP 9 provides the flexibility to maintain unlimited stock item classification for your invento-ries.
depending upon your nature of business / needs. If you are a manufacturing concern, you may primarily
require three broad classfiications of the Stocks Groups i.e., Raw Materials, Work-in-Progress & Finished
Goods. Depending upon the nature of business, you may create any number stock groups and classify
stock items under them at point of time. When Integrate Accounts with Inventory is enabled, the
closing values of inventories under each of the stock groups are automatically reported in the financial
statements. However, If you have not opted to Integrate Accounts with Inventory, you can created
Ledgers as Raw Materials, Work-in-Progress and Finished Goods Stock-in-Hand group and generate
balance sheet as of a particular date.

5.12 Bill of Materials

In many segments of the industries, especially in Manufacturing/Assembling organisations, there are
number of components/inputs/spares that go into the manufacturing/assembling of finished Goods. Each
process of manufacturing of raw materials to finished goods / intermediate goods comprises of a List of
components known as Bill of Materials (BoM) containing the list of com-ponents involved in the
manufacturing/assembling of the finished goods. In Tally.ERP 9, you can create a bill of materials and
specify the list of items (alongwith the Godown and Quantity details) that are required for manufacturing
the finished / intermediate product. Once, the Bill of materails is created, you can use Manufacturing
Journal and specify the quantity of finished goods that are to be manufactured. Tally.ERP 9, immediately
selects all items required to manufacture the finished product and automatically adjusts (decreases) the
stocks. You can also enter additional costs like wages, power, water charges etc, to the cost of the items
used in manufacturing.

To enable Bill of Materials (BoM),

Go to Gateway of Tally > Inventory Info. > Stock Item > Create 􀂇Press F12: Configure, set
parameter Allow Component list details (Bill of Materials) to Yes
To create Bill of Materials (BoM),
􀂇From the above Stock Item Creation screen,
􀂇Specify Stock Item Name, Units of Measure and other details
􀂇Set Alter Components (BoM) to Yes
􀂇Select all Stock Items required /used for manufacture / assembly of the finished product along with
Godown and Quantity details
􀂇Save the screen
To create Manufacturing Journal Voucher, Go to Gateway of Tally > Inventory Vouchers > Alt+F7
(Stk Jrnl)
􀂇Select Mfg Journal
􀂇Select the name of the finished product to be manufactured / assembled
􀂇Select the Godown / Stores and specify the Qty
Tally.ERP 9 automatically picks up all stock items to manufacture the finished product with their costs.
You can also add additional manufacturing costs like labour, power, fuel, water charges etc.

Tally.ERP 9 displays the total additional cost, effective cost and the effective rate

5.13 Tracking Additional Cost of Manufacturing To track Additional Costs of

manufacturing, create a Manufacturing Journal with BoM in the manner, as explained in the
previous section.When you manufacture a product, you have to consider certain other costs like water
charges, wages and electricity in addition to the cost of the component, which are added to the product
 cost during the process of manufacturing. In Tally.ERP 9 , you can record additional costs in % or as
notional value to
5.14 Job Costing Tally.ERP 9 facilitates tracking of cost and revenue information down to the
smallest detail for any Job Work/contract undertaken or outsourced to third parties. In order to ascertain
the actual costs incurred for each job, each job is assigned a job number or Job name and then Job
costing systems accumulate costs separately for each product or service, based on the jobs/tasks
under-taken or materials consumed, for each such product or service. In Tally.ERP 9 each Jobwork /
sub-contract is created as Godown and Cost Centres are deployed to accumulate Cost / revenue for
each job. You can use Stock Journals to transfer materials from your company's godown(s) to job
workers / sub-contractors location and track the consumption of goods sent for processing. This helps
to keep track of the materials issued and consumed at the job work units. Additionaly, you can also
account for costs incurred using purchase / payments / journal vouchers. To Enable Job Costing in
Tally.ERP 9, Go to Gateway of Tally > F11: Accounting Features To create Manufacturing Journal
Voucher Type, Go to Gateway of Tally > Inventory Info. > Voucher Types >
􀂇 SetUse Cost Centres for Job Costing to Yes
􀂇 SetMore than ONE Payroll / Cost Category to Yes (if required)
To use Job Costing Feature in Tally.ERP 9, follow the steps given below
Step 1: Create Cost Centres for Job Costing Go to Gateway of Tally > Accounts Info > Cost
Centres > Create 􀂇Enter the name of the Cost Centre in the Name field 􀂇In the Under field, select
Primary from the List of Options 􀂇Set the option Use for Job Costing to Yes.(This cost centre will
then be available in the drop down for the Job Work Analysis report) 􀂇Save the screen

Step 2: Create Godowns for Job Costing Go to Gateway of Tally > Inventory Info. >
Godowns > Create 􀂇In the Godown Creation screen,
􀂄AllowStorage of Materials is automatically set to Yes
􀂄Selectthe required Cost Centre from the list of Cost Centres, in the Set Job/Project Name for Job
Costing field
􀂇Save to accept

Note-To enable Multiple Godowns in Tally.ERP 9, 􀂇

Go to Gateway of Tally > F11 : Inventory Features > Set Maintain Mul-tiple Godowns to Yes

Step 3: Create Ledgers for Job Costing Go to Gateway of Tally > Inventory Info. > Ledgers >
Create
􀂇Enter the name of the Ledger
􀂇Specify the Group Name in the Under field
􀂇Set Cost Centres are applicable to Yes

Step 4: Create Stock Journal Voucher Class for transfer and consumption
Go to Gateway of Tally > Accounts / Inventory Info. > Voucher Types > Alter 􀂇Tab down to Name
of Class field and specify Transfer Class and press Enter
􀂇Set Use Class for Inter-Godown Transfers to Yes, you will prompted back to the Name of Class
field in Voucher Type creation/alteration screen
􀂇Type Consumption Class under Name of Class and press Enter
􀂇Set Use Class for Job Costing Consumption to Yes
􀂇Save screen
Step 5: To create Transfer Journal Voucher
Go to Gateway of Tally > Inventory Vouchers > (Alt +F7) Stk Jrnl
􀂇Select Transfer Class as the Voucher Class
􀂇Select Stock Items to be sent from company's godown in Source column (left side) with Qty details
􀂇Specify same items and mention Job worker's Godown details in Destination column
The Transfer of Materails voucher will appear as shown :

Step 6: To create Consumption Journal Voucher

Go to Gateway of Tally > Inventory Vouchers > (Alt +F7) Stk Jrnl
􀂇Select Consumption Class as the Voucher Class
􀂇Select Stock Items consumed at the Job work Godown in the Source column with Quan-tity details

Step 7: To view Godown Summary

Go to Gateway of Tally > Display > Statements of Inventory > Godowns 􀂇Select the Godown/Job
Worker
Step 8: To Job Work Analysis Report
Go to Gateway of Tally > Display > Statements of Accounts > Job Work Analysis 􀂇Select the
required Job and press Enter
You can also insert (Alt+C) columns to display costing report for other Jobs and compare
margins/costing across jobs.

5.15 Stock Ageing Analysis

The Stock Ageing Analysis report is significant report, which is very useful to you to know, how fast the
inventory of various stock items is moving. This allows your management to decide the production plan
and its schedule. The report by default shows you the ageing period for each and every stock item, by
date of purchase. However, you can select the style of ageing, by selecting the option Ageing Style (i.e.
By date of Purchase, By Mfg date, By Expiry Date, To be expired). You can also change the period of
ageing, by selecting the F6 option. Tally.ERP 9 provides you flexibility to specify combination of expiry
date and ageing for monitoring goods of perishable nature / pharmaceutical industry.
To view Stock Ageing Analysis report, Go to Gateway of Tally > Display > Inventory Books >
Ageing Analysis
􀂇 Press F6, to change the period
􀂇 Press Alt + S, to change ageing style
􀂇 Press Alt + B, to get information on expired batches (Food / Pharmaceutical industry)

5.16 Batch Related Stock Ageing Report

To view Batch related Stock Ageing Report, Tally.ERP 9 has a facility to generate batch related stock
reporting. If you look at the ageing analysis you can view items with their batches references, dates of
Mfg and Expiry dates. You can also get a report on those items whose shelf-lives have expired or likely to
expire. You can move those fast by offering discounts or returning to the manufacturers (as in the case of
food and medicine stocks). You can also view ageing reports for all batches.
Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis
􀂇Select any Stock Group or Primary to display all Stock Groups
ERP 9 displays all stock items with their batch details, mfg date and expiry date. Using (Alt+B) Expired
batches, you can view those items that are past their expiry dates.
5.18 Reorder Levels

To Enable Reorder Levels, It is essential for your company to maintain sufficient inventory levels to cater
to the growing needs of your customers and smoothly run your business. In order to have adequate
stocks, you have to maintain information in respect of consumption pattern and reorder levels. Tally.ERP
9 provides you facility to maintain reorder level details for each stock item. You can define reorder levels
as well as minimum order quantity for stock items based on the consumption pattern and as per
requirements for a specific period (i.e. Days, Months, Weeks, and Years). Tally.ERP 9 also provides you
information on stock items whose balances have gone below specified reorder levels.
Go to Gateway of Tally > F11: Inventory Features > Set Allow Purchase Order Processing to Yes
To specify Reorder Levels,
Go to Gateway of Tally > Inventory Info. > Reorder Levels > All items/Groups
􀂇Specify Reorder Quantity, Minimum Order Quantity levels, Period and Criteria details.
􀂇Save screen

To view Reoder Status Report,

Go to Gateway of Tally > Display > Statements of Inventory > Reorder Status
􀂇Select a group or Primary
􀂇Press Enter
Profitability Analysis (Stock Groupwise / Stock Itemwise / Invoicewise /
Locationwise)
Using Tally.ERP 9, you can automatically calculate the gross profit for an item based on its sale price and
consumption cost. Gross profit is the difference the between sale price and the con-sumption value. The
consumption value is calculated based on the purchase price. You can calculate gross profits for each
invoice, stock item, stock group as well as items and location wise.
To view Stock Group wise, Go to Gateway of Tally > Display > Inventory Books > Group Summary
􀂇 Select Primary or any Stock Group 􀂇 Press F7 : Show profits
􀂇 Tally.ERP 9 displays sales value, consumption cost and gross profit along with percentages

To view Stock item wise, Go to Gateway of Tally > Display > Inventory Books > Stock item
􀂇Select the Stock Item
􀂇Press F7 (Show Profit)
􀂇Press Enter to drill down further to get transaction wise profitability (Only for outward entries). To view
Invoice Wise, Go to Gateway of Tally > Display > Account Books > Sales Register 􀂇Select a month
to display sales entries
􀂇Press F7(Show Profit)
Lesson 6: The Technology Advantage of
Tally.ERP 9
6.1.2 Data Reliability and automatic recovery Tally.ERP 9 uses a recursive object oriented, flexi-
field, flexi-length embedded database engine giving a compact and fast performance. The in-built
database engine also ensures that you do not need to install or understand any third party database
like most other applications. Tally.ERP 9 is completely maintenance free without any administration
required from your side. The performance is reflected with most of the reports coming up instantly.
Overall you get a smooth experience with a lower cost of ownership. Tally.ERP 9 provides a high level of
reliability of data with several technologies built into it. Your data does not get corrupted even if there is a
sudden machine shutdown or network breakdown or power cut. This is ensured using the concept of
transaction atomicity?? which is supported by the object oriented storage. Tally.ERP 9 uses data integrity
checks intensively to detect any change to your data by external means. Any corruption happening in this way
will be instantly detected as the program operates the data with a timely warning to you. Besides providing a
warning, Tally.ERP 9 provides you a unique capability to recover from most corruptions by allowing you to
simply rewrite the data. The corrupted data is then discarded and you can continue with normal operations, at
the most re-entering the corrupted transactions or masters only.

6.2 Internet &

Data exchange
6.2.1 HTTP-XML
based data
interchange
Tally.ERP 9 uses a
recursive object
oriented data structure
which can naturally and
easily be expressed as
XML. Tally.ERP 9 can
export your data in XML
format and can also
import data coming in
XML format. This is a
fundamental capability
of the program and can
be easily used to extract
data for third party
applications or to pump
in data from third party
applications as long as it
is compliant with the
schema of a voucher or
master. The process can
 be automated since Tally.ERP 9 can run as an HTTP (Hyper text transfer protocol) server and can process
requests for import or export in HTTP-XML to this server from other applications. Even third party web
applications written in ASP, PHP, Java etc. can talk to your Tally.ERP 9 running as an HTTP server and provide
real-time information or remote data input. The third party application can send a request to Tally.ERP 9 to get
any report in XML or even in HTML formats. Even new reports can be added by defining them in TDL (Tally
Definition Language). In the same way, a master or a voucher can be created in XML and sent to Tally.ERP 9
server as an HTTP-XML request and will be processed and stored by Tally.ERP 9. This capability has been used
to provide the synchronisation capability (explained in this document later) which allows data to be replicated,
exchange between multiple Tally.ERP 9 instances running at same or different locations just by configuring the
same. All Tally.ERP 9 reports can be readily exported in XML format.

6.3 ODBC - Open Database Connectivity

6.3.1 ODBC data access
Tally.ERP 9 provides an ODBC (Open database connectivity) driver natively which allows other
applications like MS-Excel (which can use an ODBC data source) to directly pick up data from Tally.ERP
9 running as an ODBC server. This data is again real-time data and can be refreshed by such
applications any time as long as Tally.ERP 9 is running. You can pick and choose the available
information and design your own reports in tools like Excel. The type of data available on ODBC from
Tally.ERP 9 can be extended using TDL (Tally definition Language). ODBC compliance allows other
programs to use data from Tally.ERP 9 directly.

Procedure:
􀂇Load Company > Press Alt+F2 (Change Period)
􀂇Minimize Tally.ERP 9
􀂇Open a new Excel worksheet > Data > Import External Data > Data Import
􀂇Select Tally ODBC_9000 as Data Source
􀂇Click Open
Tally.ERP 9 connects to data source and displays Tally.ERP 9 Wizard query screen -> select the
columns you would want to
include in the query.

6.4 Automatic data

replication/exchange with synchronisation

Ability to synchronise data across multiple offices Synchronisation process in Tally.ERP 9 helps you to
transfer data between two or more locations. For instance, Synchronisation can be done both ways for
the Head office of a company and its Branch office situated in two different locations.

6.5 Security Management

6.5.1 Data Security
User-defined Security Levels
To activate Administrator level Password: Tally.ERP 9 use of data integrity checks ensures that no
external change to your data can affect it. It uses a binary encoding format of storage to prevent devious
grouping of information. It also offers access to your database thru an ODBC layer, which is fully
activated. Tally.ERP 9 offers you high levels of security. You can define multiple levels of security as per
requirements and authorize users with individual passwords and rights to access specific functionality
only. User with Administrator level password will have full access to all features and will set access
controls for other users.
The Administrator level password is activated during company creation
􀂇Company Info screen > Create
􀂇Type Company Name, Address and other related details
􀂇Set the feature Use Security Control to Yes
􀂇Specify Administrator Name, password and repeat
􀂇Save screen

If the company is already created:

􀂇Load Company > Alt+F3 (Cmp Info) > Alter
􀂇Set the feature Use Security Control to Yes
􀂇Specify Administrator Name, password and repeat
􀂇Save screen

To create multiple levels of passwords:

Create the Administrator level password as explained earlier. 􀂇Select Company > Type Administrator
Name and password.
􀂇Click Alt+F3 (Cmp Info) > Security Control > Types of security
􀂇Specify Name of Security Level
􀂇At the field Basic Facilities of, select Owner
􀂇Specify value for Days allowed for Back Dated vouchers. (The no. of days the user is allowed to go
back to enter vouchers from the current date).
􀂇Specify value for Cut-off date for Back Dated vouchers (The last day till which the user can go back
to enter transactions)
Go to column Disallow the following Facilities ->Specify the Type of access (i.e. Full Access, Alter,
Create, Create/Alter, Display, Display/Print etc)
􀂇Go to column Allow the following Facilities and specify the details
􀂇Save screen

6.6 Tally Audit

To activate Tally Audit: Tally audit feature provides you with Administrator rights; a capability for you to
check the accuracy and correctness of the entries made by authorized users. It allows you to alter the
entries if required. Once you audit the entries, Tally.ERP 9 displays for you all altered entries with the
user's name who altered the entry, the date and time of alteration. The audit trail is also available in the
day book where the administrator can view the alterations made. You can activate the Tally Audit feature
during the creation of the Company. If your company is already created,
􀂇Click Alt+F3 (Cmp Info) ->Alter.
􀂇Select company from List of Companies.
􀂇Set the feature Use Security Control to Yes.
􀂇Specify the Administrator Name & Password.
􀂇Repeat the entry of the password.
􀂇Activate the parameter Use Tally Audit Features to Yes.
􀂇Save the entries made in the Company Alteration screen.
To audit Transactions / masters:
􀂇Login Tally.ERP 9 as an Administrator.
􀂇Go to Gateway of Tally > Display > Statements of Accounts > Tally Audit
􀂇Select masters or vouchers. 􀂇View the vouchers that are not audited.
􀂇Select F7 (Accept one) and audit an entry or select Alt+F7 (Accept all) to audit all entries.

6.10 Others
Print Preview:
Before printing any report you would ideally like to view the content and format of reports / Invoices / Vouchers.
Tally.ERP 9 offers you a facility to preview the report before printing or mailing. This is the print preview option.
Selection of Company data by the Administrator
􀂇Go to Gateway of Tally > Click F1 to select a company
􀂇Against Directory the path of the Data folder displays
􀂇Against Name, select the required company from List of Companies
􀂇Press Enter
Generation of Report
􀂇Go to Gateway of Tally > Balance Sheet
􀂇Click Alt+F1 to view a detailed report
Access to Company data to make entry by the user
􀂇Go to Gateway of Tally > Click F1 to select a company 􀂇Against Directory the path of the Data folder displays
􀂇Againstthis field use Backspace key to enter the path of the shared folder Data, located on the Administrator's
system 􀂇Select the required company from List of Companies 􀂇Save screen
Accounting entry by the user
􀂇Go to Gateway of Tally > Accounting Vouchers
􀂇Select the required voucher screen (e.g. F5- Payment/F6 - Receipt)
􀂇Make the required entry
􀂇Save screen
6.11 Internal Backup / Restore
To take a Backup: Tally.ERP 9 has in-built user friendly features of backup and restore. You can take a
backup in the local hard disk or any external media. Tally.ERP 9 provides you with the capability to take
backup of one or more companies or all companies in a single directory.
􀂇Click Alt+F3 > Backup
􀂇Select Source (specify path)
􀂇Select Destination (specify path)
􀂇Select the Company/Companies for data backup
􀂇Save screen.
To Restore data:
􀂇Click Alt+F3 > Restore
􀂇Select Destination (specify path)
􀂇Select Source (specify path)
􀂇Select the Company/Companies for data restore
􀂇Save screen
Lesson 7: Statutory Compliance Capabilities
Tally.ERP 9 provides the following Statutory Compliance Capabilities namely,
􀂇Value Added Tax (VAT)
􀂇Service Tax
􀂇Tax Deducted at Source (TDS) 􀂇
Excise (Manufacturers & Dealers)
􀂇Fringe Benefit Tax (FBT)
􀂇Tax Collected at Source (TCS)
􀂇Central Sales Tax (CST)

7.1 Value Added Tax (VAT)

7.1.1 Enable Value Added Tax (VAT) Tally.ERP 9 provides VAT solution to across 32 states
in India and other international countries like Indonesia, Phillipines and Bangladesh. The VAT
compliance in Tally.ERP 9 is completely inte-grated with Accounting, Inventory & Reporting and
simplifies these aspects with absolute ease, accuracy and speed. As per VAT Regulations,
every registered business under VAT is required to generate VAT compliant Tax Invoice and
file Statutory Returns periodically in prescribed forms and documents of the respective state.
To enable Value Added Tax (VAT) in Tally.ERP 9, follow the steps given below : Go to Gateway of Tally > F11:
Features
Set Enable Value Added Tax to Yes
􀂄Enable Set/Alter VAT details to Yes and press Enter, the VAT Details screen appears
􀂄Select State and Type of Dealer and the applicability date of VAT
􀂄Press Enter to go back to F11: Company Features screen
􀂇Type VAT TIN, Inter-State Sales Tax Number and Tax Information details
􀂇Save screen
7.1.2 Create VAT Ledger Masters
Value Added Tax (VAT) is charged at every level of purchase and sales and thus the purchase and sales
transactions involve VAT. create necessary Purchase, Sales, Input and Output VAT ledgers with the required VAT
Classifications. To create VAT Ledger Masters in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > Accounts Info. > Create
􀂇Type the Name of the Ledger
􀂇Select the required Group
􀂇Select the Type of Duty/Tax as VAT
􀂇Select the required VAT Classification from the list of VAT Classification in the VAT/Tax Class field (The
Percentage of Calculation and Method of Calculation is automatically defaulted with the % and On VAT Rate
respectively)

7.1.3 Create VAT Transactions

To create VAT transactions in Tally.ERP 9, follow the steps given below : Go to Gateway of Tally > Accounting
Vouchers > F8: Sales /F9: Purchase
􀂇Select the Party’s Name
􀂇Select Stock Item, Quantity & Rate Details
􀂇 Select VAT Ledger (Output VAT for Sales Voucher and Input VAT for Purchase Voucher)
7.1.4 Print VAT Invoice
To print VAT Invoice,
􀂇Press Pg Up from the above screen
􀂇Press Alt + P, the Voucher Printing screen appears
􀂇Specify required details and press Enter to print
7.1.5 View VAT related reports
To view VAT Reports, follow the steps given below : Go to Gateway of Tally > Display > Statutory Reports > VAT
Reports

The VAT Reports menu consists of two reports, namely 􀂇VAT Computation 􀂇VAT Forms 􀂄VAT
Return Forms 􀂄VAT AnnexuresVAT Computation Report To view VAT Computation Report
The VAT Computation report displays various types of Input VAT Tax and Output VAT tax
ledgers employed and transacted during voucher entry. Tally.ERP 9 provides a clear-cut
presentation on how VAT is computed for a given period. It also provides a bird's eye view of all
transaction related t Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT
Computation
o VAT.
VAT Forms The VAT Return Forms are State specific VAT Forms and Annexures to be submitted by
the regis-tered VAT Dealer on Monthly / Quarterly basis. To print VAT Return Forms Go to Gateway of
Tally > Display > Statutory Reports > VAT Reports > VAT Forms > VAT Return Forms > Form VAT
100
Similarly, to generate VAT Annexures follow the path given below and print the annexures Go to
Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Forms > VAT Annexures

7.2 Service Tax

Tally.ERP 9 tracks bill-wise (bill-by-bill) details and automatically calculates Service Tax payable and
Input Service Tax Credit on each service bill. It also allows you the flexibility to make adjust-ments later.
Tally.ERP 9 contains statutory masters predefined with Service Tax rates and abatements for each
taxable service. With the help of Tally.ERP 9, you can adjust input credit against the service tax payable
and account for abatements / expenses and also specify exemption notification details. It also facilitates
generation and printing of Service Tax related reports, forms and challans in the prescribed formats (viz.,
GAR 7 Challans and ST-3 Challans)
7.2.1 Enable Service Tax
To activate Service Tax in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
􀂇Set Enable Service Tax to Yes
􀂇Enable Set/Alter Service Tax details to Yes
􀂇Press Enter, the Service Tax Details screen appears,
􀂇Type all details in Company Service Tax Details
􀂇Save screen

7.2.2 Create Service Tax Ledger Masters

Service affects those services that have been notified by the Government on input and output services,
create input and output service tax ledgers.
To create Service Tax Ledger Masters in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > Accounts Info. > Create
􀂇Type the Name of the Ledger 􀂇Select the required Group
􀂇Select the Type of Duty/Tax as Service Tax
􀂇Select the required Service Tax Category from the list of Service Tax Categories in the Category
Name field
7.2.3 Create Service Tax Transactions
To create Service Tax transactions in Tally.ERP 9, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F8: Sales /F9: Purchase
􀂇Select the Party’s Name
􀂇Select the Service and value of Services rendered
􀂇Select Service Tax Ledger, the rate of service tax and the service tax amount is prefilled automatically
7.2.4 Print Service Tax Invoice
To print Sales Invoice for Services rendered in Tally.ERP 9, follow the steps given below :
􀂇Press Pg Up from the above screen
􀂇Press Alt + P, the Voucher Printing Screen appears
􀂇Specify required details in Voucher Printing screen
7.2.5 Receipt of Payments
To record receipts for Services rendered, follow the steps given below :
Go to Gateway of Tally > Accounting Vouchers > F6:Receipt
􀂇 Select the Bank Ledger in the Account field 􀂇 Select the Party details 􀂇 Select the relevant Service
Tax Category in the Service Tax Ledger field of BIll-wise Allocations for screen and press Enter

7.2.6 Service Tax Abatement facility

Tally.ERP 9 allows you to account for applicable abatements for respective taxable services. You can
avail abatement against the output tax payable for a given period. In Tally.ERP 9, the details of
abatements are available in the Statutory masters containing the taxable services. To view Service
Categories, Go to Gateway of Tally > Display > Statutory Info. > Service Categories

7.2.7 Payment of Service Tax

The Service Tax has to be paid to the credit of the Central Government by the 5th of the month
immediately following the calendar month in which the payments are received, towards the value of the
taxable services. The Service Tax Payments are required to be paid in GAR-7 Challan, Tally.ERP
provides the facility to generate GAR-7 with the required information. To make payments for Service Tax,
Go to Gateway of Tally > Accounting Vouchers > F5: Payment 􀂇Select the Bank Ledger in the
Account field 􀂇Select the Output Service Tax Ledger 􀂇Set Provide Details to Yes and specify the
Payment Details
7.2.8 Print GAR 7 Challan
To generate GAR 7 Challan for payment of Service Tax, 􀂇Press Pg Up from the above screen 􀂇Press
Alt + P, the Voucher Printing appears 􀂇In the Voucher Printing screen, ensure Print GAR - 7
Challan option is set to Yes 􀂇Press Enter to Print
7.2.9 View Service Tax Reports
To view Service Tax Reports, follow the steps given below :
Service Tax Payable According to Service Tax Rules, every registered service provider is required to
maintain proper Books of Accounts and Records for all input services consumed and output services
provided by them during the specified period. In Tally.ERP 9, the following Service Tax reports are
available : 􀂇Service Tax Payables 􀂇Input Credit Form 􀂇ST3 Report Go to Gateway of Tally > Display
> Statutory Reports > Service Tax Reports
The Service Tax Payable Report delivers information on total value of taxable services rendered and
realised during the given period. It provides party-wise and category-wise tax obligation of the assessee
for the particular period. You can generate the service tax payable report to know the Service Tax liability
before adjustment. Go to Gateway of Tally > Display > Statutory Reports > Service Tax Reports >

Service Tax Payables

To view the Service Tax Payable Report in detailed mode, press Alt+F1
To view Input Credit Form, Go to Gateway of Tally > Display > Statutory Reports > Service Tax
Reports > Input Credit Form
7.3 Tax Deducted at Source (TDS)
Tax Deducted at Source is one of the modes of collecting Income Tax from the taxpayers as per the
rates mentioned under IT Act and Rules. The deductor of the Tax (TDS) deducts the tax from the
deductee, on payment of specified Incomes and deposits the same to the credit of Central Government
within the specified period alongwith the challan in prescribed format. Tally.ERP 9’s TDS feature is
designed to handle all your TDS requirements easily and with complete flexibility. It allows you to
configure the TDS ledgers, by specifying the nature of payments and type of assessee along with the
TDS rates. With the help of Tally.ERP 9, you can generate and file Quarterly/Monthly Returns, Challans
viz., Form16 A and Certificates in prescribed formats. You can also generate e-TDS and file in NSDL
compatible formats.
7.3.1 Activate Tax Deducted at Source (TDS)
To activate TDS in Tally.ERP 9, follow the steps given below : Go to Gateway of Tally > F11: Features
> F3: Statutory & Taxation 􀂇Set Enable Tax Deducted at Source to Yes 􀂇Enable Set/Alter TDS
details to Yes
 The Company TDS Deductor Details appears 􀂄Specify the TAN Number,
􀂇
IT Circle, Deductee Type and other details 􀂄Save screen 􀂇Specify PAN/Income Tax No. 􀂇Save
F11: Statutory & Taxation screen7.3.2 View Deductee Types To view Deductee Types predefined in
Tally.ERP 9, Go to Gateway of Tally > Display > Statutory Info. > Deductee Types 􀂇Select the
Deductee Type (For e.g., select Company Resident). from theTo create TDS ledgers in Tally.ERP 9,

follow the steps given below : Go to Gateway of Tally > Accounts Info. > Create 􀂇Type the Name of
the Ledger 􀂇Select the required Group 􀂇Select the Type of Duty/Tax as TDS 􀂇Select the required
Nature of Payment from the drop down list 7.3.5 Create TDS Transactions To create transactions
involving TDS, follow the steps given below : Step 1 : Booking of Expenses and TDS Deduction Go to
Gateway of Tally > Accounting Vouchers > F7: Journal 􀂇Select the Expenses Ledger and total
amount in the Debit side 􀂇Select the Party Name and the amount in the Credit side 􀂇Press Enter, the
TDS details screen appears Step 2 : Payments to Third Parties after TDS deduction To account for
payment made to party after deduction of TDS Go to Gateway of Tally > Accounting Vouchers > F5:
Payment 􀂇Select Bank Ledger in the Account field 􀂇Select the Party Name and specify the amount
Step 2 : Payments to Third Parties after TDS deduction To account for payment made to party after
deduction of TDS Go to Gateway of Tally > Accounting Vouchers > F5: Payment 􀂇Select Bank
Ledger in the Account field 􀂇Select the Party Name and specify the amount
7.3.6 TDS Deduction on Advance Payments
To deduct TDS on advance payments made to third parties, follow the steps given below : Go to
Gateway of Tally > Accounting Vouchers > F5: Payment (As Voucher) 􀂇Select Party Name and
specify the amount in the Debit side 􀂇Select the TDS ledger in the Credit Side and specify the Nature
of Payment in the TDS Details screen 􀂇Select End of List and press Enter 􀂇Select the Cash / Bank
Ledger in the Credit side 􀂇Save the screen
7.3.7 Deduction of TDS separately
􀂄Specify the Till Date
􀂄Select the Party Details
􀂄Select Nature of PaymentIf the expenses are booked on a earlier date and the TDS is required to be
deducted at a later date, follow the steps given below : Go to Gateway of Tally > Accounting Vouchers
> F7 : Journal 􀂇Press Alt+S (TDS Deduction) and enter the following details
7.3.8 Payment of TDS
􀂄Specify the Deducted Till Date
􀂄Select the Section under which deducted
 􀂄Select Nature of Payment 􀂄Select the Deductee Statu 􀂄Select the Cash/Bank
Ledger Go to Gateway of Tally > Accounting Vouchers > F5: Payment 􀂇Press Alt+S (TDS
Helper) and enter the following details
􀂇Set Provide Details to Yes and specify the Payment Details (Cheque/DD No. and Date etc.)

7.3.9 Print ITNS 281 Challan

􀂄Set Print as TDS Challan to Yes
􀂄Specify the Filing Date
􀂄Press Enter to PrintTo Print ITNS 281 challan, follow the steps 􀂇Press Pg Up from the above screen
􀂇Press Alt+P 􀂇In the Voucher Printing screen,
7.3.10 View TDS Reports
Tally.ERP 9 provides the following TDS Forms, Challans and Reports.
􀂄Form 26Q
􀂄Annexure to 26Q
􀂄Form 27Q
􀂄Annexure to 27Q
􀂄Form 26
􀂄Annexure to 26
􀂄Form 27
􀂄Annexure to 27 􀂇TDS Computation 􀂇TDS Challan Reconcilliation 􀂇Quarterly eTDS Returns
􀂇Annual eTDS Returns
􀂇Outstandings 􀂇Exception Reports To view TDS Reports, follow the steps given below 􀂇Go to
Gateway of Tally > Display > Statutory Reports > TDS Reports The Form 16A issued tothi
party stating the deduction of TDS details appears as shown :
7.4 Excise (Manufacturer & Dealer)
7.4.1 Enable Excise Tally.ERP 9 provides complete excise solution for manufacturers as well
as dealers dealing in excise goods. It facilitates generation of Excise Invoice for traders and
manufacturers (covered under the Central Excise Act) as per Rule 11 of Central Excise Rules. It
allows you to maintain complete information of purchase and sale of excisable goods and helps
in printing the same in the Excise Invoice. With the help of Tally.ERP 9, you can generate
Excise reports and registers in the prescribed formats for Manufacturers and Dealers,as the
case may be.
To activate Excise for Manufacturer/Traders, Go to Gateway of Tally > F11: Features > F3: Statutory
&
Taxation 􀂇Set Enable Excise to Yes 􀂇Set/Alter Excise Details to Yes and press Enter7.4.2 Create

Tariff Classification To Create Tariff Classification, Go to Gateway of Tally > Inventory Info. > Tafiff
Classifications > Create 􀂇Type all required details 7.4.3 Create Excisable Stock Item To Create
Excisable Stock Items: Go to Gateway of Tally > Inventory Info. > Stock Items > Create 􀂇Specify the
details for Name and other information.
7.4.3 Create Excisable Stock Item To Create Excisable Stock Items: Go to Gateway of Tally >
Inventory Info. > Stock Items > Create 􀂇Specify the details for Name and other information.
7.4.4 Create Excise Voucher Type
To Create an Excise Voucher Type for purchase,
Go to Gateway of Tally > Accounting Info. > Voucher Types > Create 􀂇Set Use for Excise to Yes
􀂇Specify the Default Excise Unit 􀂇Specify all other required details as shown

7.4.5 Purchase of Excisable Goods

To account for excise duty paid on purchases of excisable stock items,
Go to Gateway of Tally > Accounting Vouchers > F9: Excise Purchase 􀂇Enter the Party Name
􀂇Specify the Supplier Details
7.4.6 Sale of Excisable Goods
To account for excise duty chargeable on sales of excisable stock items, Go to Gateway of Tally >
Accounting Vouchers > F8: Excise Sales 􀂇Specify the required details as explained in the previous
section 􀂇Save screen 􀂇Press Alt+P to Print Excise Invoice under Rule 11.
7.4.7 View Excise Reports
With the help of Tally.ERP 9, you can generate Excise reports and registers in the prescribed formats for
Manufacturers as well as dealers dealing with Excisable goods. Tally.ERP 9 provides the following
reports for Excise Dealers : 􀂇Quarterly returns (Form 2 ) 􀂇Excise Stock Register (RG 23D) 􀂇Excise
Purchase Bill Register 􀂇Sales and Purchase Extract To view Dealer Excise Reports, Go to Gateway of
Tally > Display > Statutory Reports > Dealer Excise Reports
Excise Stock Register
Every Registered Dealer has to maintain a Excise Stock Register to record the daily receipt and issue of
excisable goods ready for inspection by the officers of the department. The Excise Stock Register in
Tally.ERP 9 gives the purchase and sales information. It has two sections, which are, the Receipt section
for Purchases and Issues section for the Sales/Debit Note/Credit Note details. Go to Gateway of Tally >
Display > Statutory Reports > Excise Reports > Dealer > Excise Stock Register
7.5 Fringe Benefit Tax
7.5.1 Enable Fringe Benefits Tax
To enable Fringe Benefits Tax in Tally.ERP 9, follow the steps given below : The Fringe Benefit Tax is
levied on employer in respect of fringe benefits provided/deemed to be provided by him to his employees
during any financial year commencing on or after 1.4.2005. The Fringe Benefit Tax is payable at the rate
at the 30% of the assesable value of fringe benefits. In Tally.ERP 9, Fringe Benefits classifications are
prdefined with the assessable value and the rate of FBT for each nature of Fringe benefits.
Go to Gateway of Tally > F11: Features > Statutory & Taxation 􀂇Set Enable Fringe Benefit Tax
(FBT) to Yes 􀂇Enable Set/Alter FBT Details to Yes

7.5.2 View FBT Assessee Type Masters

The FBT Assessee details provides the rates of tax, surcharges and Cess that are to be deducted and
remitted to the Government. To view the FBT Assessee Type details, Go to Gateway of Tally >
Display > Statutory Info. > FBT Assessee Type
7.6 Tax Collected at Source (TCS)
TCS is the Tax Collected at Source by you (collector) from a Buyer/lessee (collectee/payee). This tax to
be collected at source is applicable to goods, as specified under Section 206C of the Income Tax Act,
1961. If the purchase value of goods is X, the amount payable by the buyer is X+Y, where Y is the value
of Tax at Source. The seller deposits the tax amount Y at any desig-nated branch of banks authorised to
receive such payments. As a seller, lessor or licensor, you are responsible for the collection of tax from
the buyer, lessee or licensee. The tax is collected for sale of goods or on transactions which involve
receipt of amounts from buyers in the form of cash or cheque, draft or any other mode.
The certificate of collection of Tax at Source has to be submitted in Form No. 27D by persons col-lecting
tax at source within a week from the last day of the month in which the tax was collected. 7.6.1 Enable
Tax Collected at Source (TCS) To activate Tax Collected at Source in Tally.ERP 9, follow the steps
given below : Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation 􀂇Set Enable Tax Collected at
Source (TCS) to Yes 􀂇Enable Set/Alter TCS Details to Yes and press Enter
7.6.2 View TDS Nature of Goods To view TCS Nature of Goods masters, follow the steps
given below : Go to Gateway of Tally > Display > Statutory Info. > TCS Nature of Goods
􀂇Select TCS Nature of Goods from the List of TCS Types to display 7.6.6 Create Sales
involving TCS To create Sales Invoice for sale of TCS goods, follow the steps given, Go to
Gateway of Tally > Accounting Vouchers > F8: Sales 􀂇Select the Party Name 􀂇Enter the
Stock Item, Quantity and Rate details 􀂇Select the TCS Ledger and press Enter

7.7 Central Sales Tax CST is a tax levied on inter-state sales of goods by dealers by the Central
Government. CST is applicable only if you sell goods to dealers in other states but not levied on sales
made intra state or on import/export sales. The Inter-state sale occurs when sale or purchase
constitutes movement of goods from one state to another. Accordingly, when you send consignments
to your agents or transfer goods to your branch/ other offices, this is not a considered as sale under the
CST Act.Statutory Compliance Capabilities in Tally.ERP 9 CST is payable in the state from where you sell
the goods and commence its movement. The tax you pay is collected and retained by the state where
the transaction originated. The CST collec-tion and administration is performed by the authorities of
your state's Sales Tax Dept. Thus, the State Government Sales Tax officer who assesses and collects
VAT (state) also collects and assesses and CST. The CST feature is enabled automatically once the
VAT feature is enabled in Tally.ERP 9. CST is payable in the state from where you sell the goods and
commence its movement. The tax you pay is collected and retained by the state where the transaction
originated. The CST collec-tion and administration is performed by the authorities of your state's Sales
Tax Dept. Thus, the State Government Sales Tax officer who assesses and collects VAT (state) also
collects and assesses and CST. 7.7.1 Create CST Ledgers To create tax ledgers for CST, follow the
steps given below : Go to Gateway of Tally > Accounts Info. > Ledger > Create 􀂇Type the Name of
the Ledger 􀂇Select the Group as Purchase Accounts 􀂇Set Is VAT Applicable to Yes and select
the VAT Classification
7.7.2 Create CST Sales Transactions To Create accounting entry for CST, Go to Gateway of Tally
> Accounting Vouchers > F8: Sales 􀂇Specify the required information 􀂇Save screen

Lesson 8: Payroll Compliance

 Payroll refers to a series of accounting transactions involved in the process of paying employees
for services rendered after taking into account all statutory and non-statutory deductions. The
efficient payroll system in Tally facilitates error-free, accurate and timely employee payments while
ensuring that the employment is well within the valid work permit. Payroll in Tally.ERP 9 handles all
the functional, accounting and statutory requirements of the payroll department. It provides you
with the flexibility to define earning & deduction heads and supports the computation and
deduction of ESI, EPF, Gratuity, etc. It supports user defined production units like attendance,
production, time based remuneration, and other methods of calculating payroll

Enable Payroll To activate payroll feature, Go to Gateway of Tally >F11: Features > Press
F1: Accounting Features 􀂇Set Maintain Payroll to Yes 􀂇Set More than ONE Payroll / Cost
Category to Yes 􀂇Save screen

To activate Payroll Statutory Features Go to Gateway of Tally > F11: Features > press F3:
Statutory & Taxation 􀂇Set Enable Payroll Statutory to Yes 􀂇Set Set/Alter Payroll Statutory
Details to Yes 􀂇Save screen
8.2 Create Payroll Masters To create payroll masters: Go to Gateway of Tally > Payroll Info.
The Payroll Info. Screen is displayed. You can create masters for Employee Groups, Employees,
Units(Work), Attendance/Production Type, Pay Heads, Salary Details and Voucher Types.

To Configure Payroll: Go to Gateway of

Tally > F12:Configuration > Payroll
Configuration 􀂇Set Show Statutory
Details to Yes 􀂇Set Show Passport &
Visa Details to Yes 􀂇Set Show Contact
 Details to Yes

8.2.1 Create PayHeads To Create Pay Heads Go to Gateway of Tally > Payroll Info. > Pay Heads
> Create 􀂇Specify the Name of Pay Head. 􀂇Specify the related details under Pay Head Info. 􀂇Save
screen.
8.2.2 Create Employee Group To Create an Employee Group: Go to Gateway of Tally > Payroll
Info. > Employee Groups > Create 􀂇Select Category 􀂇Specify details for Name & Under 􀂇Save
sreen

8.2.3 Create Employee Master

To Create an Employee Master:
Go to Gateway of Tally > Payroll Info. > Employees > Create 􀂇Select Category and type Name of
Employee. 􀂇Specify all related details - like Under, Date of Joining, etc. 􀂇Save screen.
8.2.4 Create Salary Details
To Create Salary Details, Go to Gateway of Tally > Payroll Info. > Salary Details > Create 􀂇Select
Employee from Name of Employee/Group 􀂇Specify all related details - like Under and Salary Details.
􀂇Save screen
8.3 Record Attendance Voucher
􀂄Type the date values in From and To fields.
􀂄Select the appropriate cost category from List of Categories.
􀂄Select the Employee/group from List of Group/Employees.
􀂄Select the Attendance/Production Type from List of Attendance/ Production Types.
􀂄Specifythe Voucher Date as applicable.To record Attendance through Attendance Vouchers: Go to
Gateway of Tally > Payroll Vouchers > Ctrl+F5 􀂇Press Alt+A (Attendance Auto Fill) to prefill
employee payroll details 􀂇In Employee Filters screen,

Payment of Salaries
􀂄Type the date values in From and To fields.
􀂄Select the appropriate cost category from List of Categories.
􀂄Select the employee/group from List of Group/Employees.
􀂄Selectthe bank account for Payroll ledger. To record Salary Payment through Payroll Vouchers: Go
to Gateway of Tally > Payroll Vouchers > press Alt+A 􀂇In Employee Filters screen,
 􀂇Press Enter to return to payroll voucher screen. Under Particulars the values against the Pay Heads
and Amount appear automatically. This happens for Calculation Type being Flat Rate and As Computed
Value. 􀂇Type values for Pay Heads whose Calculation Type is User Defined Value. 􀂇Save screen.

8.4 View Payroll Reports To view Payslip To view Payroll Reports: Go to Gateway of Tally > Display > Payroll
Reports You can generate the following reports in Tally.ERP 9 viz., Statements of Payroll, Attendance Sheet, Attendance
Register, Gratuity Report etc. Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payslip
􀂇Select the required Employee and press Enter
To view Payroll Register Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payroll Register
To view Attendance Sheet Go to Gateway of Tally > Display > Payroll Reports > Attendance Sheet
To view PF Computation Report Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
> Press Alt+F1

To view Form 12A

Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund > Form 12A