We will the covering the following topics in this chapter
Creation, Modification and deletion of company, Group and Ledger
Security control, back-up and restore process
Accounting Voucher & Inventory Entries
VAT & CST-accounting entry in Tally ERP
Service Tax entry in tally ERP
TDS entry in Tally ERP
Cost centre-creation and allocation
Company merging and splitting
Reports in Tally ERP and Year end Process
Introduction to Tally ERP 9
Tally ERP 9 is the world's fastest and most powerful concurrent Multi-lingual business Accounting and Inventory Management software. Tally ERP 9, designed exclusively to meet the needs of small and medium businesses, is a fully integrated, affordable and highly reliable software. Built on the proprietary technology of Tally Solutions - C MuLATE (Concurrent Multi-lingual Accelerated Technology Engine)-Tally ERP 9 is a perfect fusion between the path-breaking Concurrent Multi-lingual Platform and an Object Oriented Database Engine. Technology on which someday all business accounting solutions will be built. Tally ERP 9 is easy to buy, quick to install, and easy to learn and use Tally ERP 9 is designed to automate and integrate all your business operations, such as sales, finance, purchasing inventory and manufacturing. With Tally ERP 9, accurate, up-to-date business information is literally at your fingertips anywhere. The powerful new features and blazing speed and power of Tally ERP 9 combine with enhanced MIS, Multi-lingual, Data Synchronization and Remote capabilities help you simplify all your business processes easily and cost effectively.
The Tally ERP 9 encompasses the following salient features:
Simplicity: Tally ERP 9 is simple, easy to setup and use. It also allows easy Keyboard operations. It requires basic knowledge of Accounts and English to use it.
Speed: Tally ERP 9 provides the capability to generate instant and accurate reports, which assists the management to take timely and correct decisions for the overall productivity and growth of the company.
Power: Tally ERP 9 allows the user to maintain multiple companies and with unlimited levels of classification & grouping capabilities. It also allows drill down facility from report level to transaction level.
Flexibility: Tally ERP 9 provides flexibility to generate instant reports for any given period (month/year) or at any point of time besides providing the facility to toggle between Accounting & Inventory reports of the same company or between companies.
Scalability: Tally ERP 9 suits to any style of business needs and eliminates the necessity for a business to change its style of operation, in order to adapt to the application.
Concurrent multi-lingual capability: Tally ERP 9 offers you the exclusive capability of maintaining your
accounts in any Indian language, viewing them in another language and printing them in yet another Indian language
Real time processing: Immediate posting & updation of books of accounts as soon as the transactions are entered, thereby facilitating instant statements & Reports. It also facilitates real-time multi-user environment.
Accounting without Codes: Tally ERP 9 allows accounting with the regular names (the way you spell them or use in normal parlance) without any account codes.
Technical support: Timely support is available from our experts at the Tally Service Partners (TSPs)
Online Help: The Tally ERP 9 Online Help (Alt+H) provides instant assistance on basic and advanced features or any other relevant topics of Tally ERP 9
Tally.NET: is an enabling framework which establishes a connection through which the remote user can access the Client's data without copying/transferring the data
Remote Access: Tally ERP 9 provides remote capabilities to access the data from any-where and anytime.
Control Centre: works as an interface between the user and Tally ERP 9 installed at different sites and enables the user to centrally configure and administer Site/User belonging to an account.
Support Centre: allows a user can directly post his support queries on the functional and technical aspects of the Product.
Auditor's Edition: Tally ERP 9 offers a special Auditors Edition of Tally ERP 9, which provides auditing and compliance capabilities exclusively for Chartered Accountants.
Creating a Company
Creating a Company involves providing basic information about the company whose books of accounts are to be maintained in Tally ERP 9.
Go to Gateway of Tally (Alt+F3) Company Info > Create Company
The Company Creation screen appears as shown:
The data path where you want the company to be created is specified in the Directory field.
This field is skipped by default when you create the company in the data path given in the Tally INI file. If you want to change it, use the Backspace key and modify it to the path requined.
This is referred to as the Tally Anywhere concept which is the ability to create load companies in separate directories. The Directory field is displayed while selecting Select, Create, Backup, Restore and Rewrite options for a company. By default, the cursor will skip the field, presuming that you wish to use the default data directory for your work. You may press Backspace to give a new path and work from there.
For example, the default Tally ERP 9 data directory could be CATALLY ERP DATA. You may now wish to create a new company on CATALLY ERP PERSONAL, and some other companies on C:\TALLY ERP BRANCHES. The rent time, the default directory displays CATALLY ERP DATA, and if you wish to work on the data of your branches, press Backspace and enter CATALLY ERP BRANCHES for the directory name. This displays the companies whose data is stored in that location in the List of Companies. You can even give the path of a network server or any other storage
device
Name
Enter the name of the company whose books are being opened.
Mailing Name and Address
In addition to the Company Name, Tally ERP 9 provides the facility to enter the Mailing Name field. It displays the Company Name by default. You may change it as required, if the mailing name is different from the Company Name The mailing name and address details are picked up for inclusion in any report that needs the company name and address as heading. For example: Balance Sheets, Statement of Accounts, and so on.
Tally ERP's reports print the mailing name and address as given.
Tally ERP 9 does NOT restrict the number of lines for the address details. Tally ERP 9 accommodates all the entered information and vertically compresses the same.
Statutory Compllance
Select the Country from the List of Countries. The Statutory Features and Base Currency Symbol are enabled in accordance with the country selected. For seusmple, if the accounts belong to a company in India, the base currency would be Indian Rupees. The Base Currency will appear with respect to the Country selected
Selecting India from the List of Countries brings up a State, Pin Code and Telephone No. field.
State
You can select the appropriate state from the predefined list.
PIN Code
Specify the PIN Code (Postal Index Number) of the specified address
Telephone
Enter the Telephone number.
Mobile No
Enter the mobile number of the company.
E-mail Address
Enter the E-mail address that will be used to e-mail documents, reports and data from Tally ERP 9.
Enable Auto Backup
Set this to Yes, if you want to enable the automatic backup of Tally ERP 9 data (per company). Else, set this to No. The data backup is stored in the data folder of the respective company. The auto backup data can be restored by pressing Ctrl+Alt+K from Company Info menu or Gateway of Tally
Maintain
Tally ERP 9 displays a drop down for the Type of Company with two options Accounts only and Accounts with Inventory
Select Accounts only if you do not have any inventory transactions
However, at a later date (if required) you can choose to alter the information as Accounts-with- Inventory Select Accounts-with-Inventory, to maintain both financial accounts and inventory.
Financial Year From.
In most countries, the books of accounts of a company are maintained for a stipulated period like, 12 months, 15 months, and so on. This stipulated period is referred to as the Financial Year
The stipulated period of the financial year is 12 months in most countries. Tally ERP 9 automatically considers 12 months from the date you give here as the Financial Year
For example, if you enter April 1, 2013 as the date, the Financial Year will be from April to March ending with March 31, 2014. If you enter October 1, 2013 as the Financial Year From then the financial year will be from October 2013 to September 2014 ending with 30th of September every year.
Tally ERP 9 allows you to maintain data for multiple years by changing the period (Alt+F2) at the Gateway of Tally. In addition, you can also specify the date of actual establishment of the company (date of incorporation)
Books Beginning From
Tally ERP 9 presumes that you wish to maintain books from the beginning of the financial year. Hence, Tally ERP 9 displays the date given in Financial Year from field automatically.
The date for Books beginning from can be changed, in case of companies, which are incorporated in the middle of the year. If your company is new, you can opt to start the books of accounts from the date of actual establishment of the company (date of incorporation) but close books according to the Financial Year as specified by you. Tally ERP 9 provides the required flexibility in such a case by allowing you to give the date when the books of accounts actually began. Tally ERP 9 will open books from this date and close as on the last day of the Financial Year.
For example, if your company is established on August 19, 2013, the opening balances for all the accounts can be given as on August 19, 2013 even though the Financial Year given is April 1, 2013 (April to March financial year). The company's books will begin on August 19, 2013 and close on March 31, 2014, which ensures smooth transition to the nod year
This concept can be applied even when you are migrating to Tally ERP 9 from any other system or from a manual accounting system on any day during the Financial Year. Close books in that other systern on the previous day and start books on Tally ERP 9 from this day. You are allowed to give opening balances of all Ledger accounts including Revenue accounts.
TallyVault Password
TallyVault is an enhanced security system, which allows for encryption of the company data. Encryption involves converting normally accessible Tally information into unrecognizable information, which can only be reconverted by authorised persons.
Give a password here and repeat the same in the Repeat field. This basically results in the creation of an encrypted company whose information is not accessible to users other than the password holder.
Password Strength
Password Strength indicator is available in Tally ERP 9 from Release 4.5 onwards. Now, strength is displayed while creating/altering passwords under Security Control, Tally Vault, and Control Centre. Also when Password Policy is enabled, Password Strength is indicated in the Change Password screen that appears for first time login
Use Security Control?
Set this to Yes, if you want to initiate a password-protected system to control access to Tally ERP 9 data
If you opt for security control, Tally ERP 9 offers a comprehensive password based access control to different features of Tally ERP 9 based on authority lists created by the Administrator. For more information refer Data Management in Tally ERP 9
Name of Administrator, Password, Repeat
Assuming the Tally Vault Password and Use Security Control is set to Yes enter the Name of Administrator. Password and Repeat in the respective fields.
Use Tally Audit Features
Tally Audit allows the administrator or an auditor profile user to track changes in accounting information. If you wish to use this facility, select Yes. Tally Audit will be available only to the administrator/auditor, through Display of Statements of Accounts
Disallow opening in Educational mode ?
Set this option to Yes, if you don't want the company to be opened in Educational mode of Tally ERP 9. Else, set this to No
On accepting the company creation screen, if you have specified Tally Vault password, Tally ERP 9
prompts you to enter the Tally Vault password as appears:
Then Tally ERP 9 prompts you to enter the Name of User and Password (if any).
After verification Tally ERP 9 imports the latest statutory masters. Wait till the screen shows that 100% of import is complete.
This completes the Company Creation process in Tally ERP 9.
Loading a Company
In order to load a company using the Select Company option, disable the default loading of a company in Tally. ini file. Set Default Companies to No or place a semicolon before Load 00001 (company number-placing a semicolon means that the words following it in that line would not be executed. Each line is a separate command).
On double-clicking the Tally icon, the screen is displayed as shown:
Visi con vose the Select Company of the Company Info Mma OR by sing the button F Select Cmp livlabile on the Gateway of Tally somet
Select Company
Sater Commby option adows you to load another company from the list of companies listed which you may have created earlier
Press Eister on Select Company or use the button F1 Select Cmp. Tally ERP 9 displays the following seen.
Tally ERP 9 displays
Displays in Tally are sections where users can analyze, check, and monitor business data. They are read-only views, meaning no changes are made in this mode.
Tally Displays help in:
Checking account balances
Viewing transactions
Generating reports
Verifying data before making decisions
Types of Tally ERP 9 Displays
Tally ERP 9 has several important displays:
1. Accounts Books
Ledger: Shows all transactions for a particular ledger
Group Summary: Displays the summary of accounts in a group
Trial Balance: Displays all ledger balances
2. Inventory Books
Stock Summary: Shows stock quantity and value
Movement Analysis: Tracks stock in and out
Stock Item Reports: View details of each item
3. Statement of Accounts
Outstanding Reports: Shows unpaid invoices
Payables & Receivables: Sundry Creditors and Debtors
4. Ratio Analysis
View financial ratios like Current Ratio, Gross Profit Ratio, etc.
5. GST & Tax Reports
Display GST Summary
View GST Payable / Receivable
6. Cash and Bank Book Displays
Shows all cash and bank transactions
Bank Reconciliation Statements
How to Access Displays in Tally ERP 9
Open Tally ERP 9
From the Gateway of Tally, press D → Display (shortcut key)
Choose the desired report or account book
View the data in read-only mode
Importance of Displays in Tally ERP 9
Helps monitor accounts efficiently
Provides instant reports for decision-making
Reduces errors in accounting
Helps in auditing and verification
Provides real-time financial insights
Advantages of Using Tally ERP 9 Displays
Easy to navigate and find information
Accurate data analysis
Time-saving for accountants and managers
Secure, because no accidental changes occur
Supports decision-making with real-time reports
Difference Between Display and Accounting Vouchers
Displays
Accounting Vouchers
Read-only
Allows entry of transactions
Used for reports & monitoring
Used to record data
No changes in ledger balances
Changes ledger balances
Helps in analysis
Helps in bookkeeping
Shut a Company
Sometimes, a business may need to close or shut down operations due to financial problems, business restructuring, or strategic decisions.
Shutting a company is a legal and financial process that ensures all liabilities are cleared, assets are accounted for, and the closure is compliant with government regulations.
In computerized accounting systems like Tally ERP, Busy, or other ERP software, proper records must be maintained before shutting down.
In simple words:
“Shutting a company means legally closing the business after settling all accounts and obligations.”
Reasons to Shut a Company
Continuous losses
Retirement or exit of owners
Business merger or acquisition
Legal or regulatory issues
Change in business strategy
Steps to Shut a Company
1. Clear All Liabilities
Pay off sundry creditors
Settle loans
Close bank accounts
Pay pending taxes and GST
2. Realize Assets
Sell inventory, machinery, furniture, and property
Record cash received in accounting software
3. Close Books of Accounts
Prepare final accounts
Balance Trading Account, Profit & Loss Account, and Balance Sheet
Transfer net profit or loss to capital account
4. Legal Compliance
File Company Closure Form with Government authorities (e.g., ROC in India)
Submit Income Tax Returns
Cancel GST Registration
Notify employees and suppliers
5. Final Audit
Get accounts audited to ensure all obligations are cleared
Maintain records for future reference
Shutting a Company in Computerized Accounting
In Tally ERP 9 or other accounting software:
Ensure all ledger accounts are reconciled
Record final closing entries
Generate final reports:
Trial Balance
Profit & Loss Account
Balance Sheet
Take backups of all company data
Archive company data for legal purposes
Note: Computerized accounting ensures accuracy, proper tracking, and easy report generation before closure.
Importance of Proper Company Closure
Prevents legal issues
Ensures tax compliance
Avoids future liabilities
Maintains professional reputation
Protects shareholders and creditors
Advantages of Computerized Accounting During Closure
Automatic calculation of profit/loss and liabilities
Accurate ledger balances
Easy generation of financial statements
Quick tax and GST settlement
Secure storage of company data
Common Mistakes to Avoid
Ignoring outstanding liabilities
Not selling or transferring assets properly
Failing to close bank accounts
Skipping legal formalities
Losing important company records
Alter a Company
This option allows you to alter information about the existing company, you can modify any information at any time that is set while creating a company.
Go to Gateway of Tally
1. Select F3: Cmp Info. (ALT+F3) from the button-bar
2. Select Alter and press Enter and the screen appears as shown below:
3. Select the company from the List of Companies and press Enter to view the Company Alteration screen.
4. Make the necessary changes in the required fields and accept the screen.
To change the password if Use Security Control is set to Yes:
1. Enter the Name of Administrator.
2. Enter the new password.
3. Re-enter the password in the Repeat field to confirm.
4. Enter the Old Password and Accept the screen to alter the company.
Delete a Company
This option allows you to delete an existing company.
To delete a company, you have to load the company first.
1. Select F3: Cmp Info. (ALT+F3) from the Gateway of Tally to proceed to the Company Information menu.
2. Select Alter and press Enter
3. Select the company to be deleted. The Company Alteration screen is displayed.
4. Use Alt + D to delete. Tally ERP 9 will prompt for a confirmation on deleting the company.
5. Press Enter to delete the company.
Pre-defined Groups In Tally ERP 9
By default, Tally ERP 9 provides a list of Groups called pre-defined groups. The user can create any number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub Group
There are 28 pre-defined Groups in Tally ERP 9, out of which 15 are Primary Groups and 13 are Sub-Groups. 3 Sub Groups
Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which are Capital in nature and 6 Primary Groups appear under Profit & Loss Account which are Revenue in nature.
13 Sub Groups are classified under the 15 Primary Groups and they appear in the Balance Sheet.
Pre-defined Ledgers in Tally ERP 9
There are two pre-defined ledgers available in Tally ERP 9, they are:
Cash
This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger.
Profit and Loss Account
This Ledger is created under the Group Primary, Previous year's Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.
You cannot delete this ledger, but you can modify the same.
Creating a Single Ledger
By default, Tally ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in-Hand) and Profit and Loss Account (direct Primary Account). You need to create all other accounts heads.
There are no restrictions in Ledger creation except that you cannot create another Profit & Loss Ac
Any number of Cash Accounts may be created in any other name for ex: Petty Cash.
Go to Gateway of Tally Accounts Info > Ledgers > Create
Ledgers can be created in Normal mode or in Advance mode.
Creating Ledger In Normal Mode
The creation of a Ledger depends on the features you have selected under F11: Features of your company and F12 Configure. You can create a single ledger account with the default options enabled.
Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger >Creatr
Name
Enter the Name of the account. You can provide the full name of the account. Tally ERP 9 fits it all in. Press Enter to move to the next field. Tall ERP 9 does not allow the entry of duplicate names. The uniqueness check is made here itself.
Note that the punctuation and other non-relevant information are ignored y Tally ERP 9 in its recognition of a rume Thus, CST. C.ST. and C.T. are all considered as same
Tally ERP 9 converts the first letter of all relevant words to upper cas, which helps you, speed up data entry.
Allas
Enter an alias name if required. You can access the Ledgers using the original name or the allas name.
Under
In computer systems and accounting, the term “Under” is widely used. It is primarily used to categorize, classify, or organize data under a specific head, account, or group.
Simple Meaning:
“Under means something is placed or categorized beneath a specific group, ledger, or heading.”
UNDER in Accounting
In accounting software like Tally ERP, Busy, or manual accounting, when you create a ledger or account, you must place it under a proper group.
Example:
If you create a ledger called “Furniture”, it should be created under Assets → Fixed Assets
If you create “Sundry Debtors”, it should be created under Current Assets
If you create “Salary Expense”, it should be created under Indirect Expenses
This ensures accurate reporting in:
Profit & Loss Account
Balance Sheet
Trial Balance
UNDER in Computerized Accounting (Tally ERP 9)
When creating a ledger in Tally:
Go to Gateway of Tally → Accounts Info → Ledgers → Create
Enter Ledger Name
Select Under (this defines the group)
Example Groups:
Assets
Liabilities
Income
Expenses
Capital
Selecting the correct “Under” group ensures that:
Reports are accurate
Balance Sheet balances correctly
Profit & Loss account shows correct totals
UNDER in MS Excel / Data Organization
In Excel or Google Sheets, Under can also mean placing data under a category or heading for proper organization.
Example:
Department
Employee Name
Salary
IT
Krishna
50,000
HR
Priya
40,000
Here, “Krishna” is under IT Department.
This makes filtering, reporting, and analysis easier.
Importance of Using UNDER Correctly
Accurate Accounting: Helps maintain proper ledgers under correct heads
Financial Reporting: Ensures P&L, Balance Sheet, and Trial Balance are accurate
Easy Data Management: In Excel or software, categorizing under proper headings improves clarity
Decision Making: Proper classification helps in analyzing performance of different accounts or departments
Advantages of Using UNDER in Computerized Accounting
Maintains financial accuracy
Reduces errors in reports
Supports automated calculations in Tally ERP
Simplifies auditing
Helps in quick data retrieval
Common Mistakes
Placing ledger under wrong group
Forgetting to categorize income or expense
Not updating UNDER field in software
Tip: Always verify the group under which a ledger/account is created before entering transactions.
Opening Balance
In accounting and computerized accounting systems like Tally ERP, Busy, QuickBooks, the term Opening Balance is very important.
Opening Balance refers to the amount of money, stock, or account balance that a business carries at the beginning of an accounting period.
Simple Meaning:
“Opening Balance is the starting balance of an account when a new financial period begins.”
Opening Balance in Accounting
Every ledger account has an Opening Balance.
It can be debit (Dr) or credit (Cr) depending on the type of account.
Example:
Ledger Name
Opening Balance
Type
Cash in Hand
₹50,000
Dr
Bank Loan
₹1,00,000
Cr
Sundry Debtors
₹30,000
Dr
Capital Account
₹1,50,000
Cr
Debit Opening Balance (Dr): Assets & Expenses
Credit Opening Balance (Cr): Liabilities & Income
Importance of Opening Balance
Helps in maintaining accurate accounts
Determines financial position at the start of a period
Ensures Trial Balance is correct
Supports Profit & Loss Account and Balance Sheet preparation
Makes account auditing easier
Opening Balance in Computerized Accounting
In Tally ERP 9, entering Opening Balance is crucial when creating a new company or new ledger:
Steps to Enter Opening Balance in Tally:
Go to Gateway of Tally → Accounts Info → Ledgers → Create
Enter Ledger Name
Select Under Group (e.g., Bank Accounts, Capital, Sundry Debtors)
Enter Opening Balance
Example: Cash in Hand – ₹50,000 (Dr)
Bank Loan – ₹1,00,000 (Cr)
Save the ledger
Note: Accurate opening balances ensure all reports are correct, including Trial Balance, Profit & Loss Account, and Balance Sheet.
Example of Opening Balance Usage
At the start of April 2026:
Cash in Hand = ₹50,000
Bank Loan = ₹1,00,000
Sundry Debtors = ₹30,000
These balances will be carried forward and updated with all transactions during the accounting period.
At the end of the period, the closing balance becomes the opening balance for the next period.
Advantages of Proper Opening Balance
Accurate financial tracking
Reduces errors in reports
Ensures easy reconciliation
Supports automated calculations in accounting software
Helps in business planning and decision-making
Creating a Purchase Invoice
To create purchase invoice for purchase of taxable goods,
Go to Gateway of Tally Accounting Vouchers > F9: Purchases
1. Select the Party's A/c Name from the List of Ledger Accounts
2. Select the Purchase Ledger grouped under Purchase Accounts with VAT/Tax class - Purchase From URDs Taxable Goods (Composition).
3 The VAT/Tax class appears as Purchase from URDs-Taxable Goods (Composition).
4. Select the stock items from the List of Items.
5. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
6. Accept the Purchase invoice.
Creating a Sales Invoice
To create sales invoice for sale of taxable goods,
Go to Gateway of Tally > Accounting Vouchers FB: Sales
1. Select the Party's Aic Name from the List of Ledger Accounts.
2. Select Sales Ledger grouped under Sales Accounts with VAT/Tax class-Sales-Composition Tax 1
3. The VAT/fex class appears as Sales-Composition Tax 15
4. Select the stock items from the List of hems
5. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
6. Accept the Sales invoice.
Creating a Debit Note
To create a Debit Note for Purchase Returns,
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9: Debit Note
1. Enter the reference number in the Ref. field.
2. Select the Party's A/c Name from the List of Ledger Accounts.
3. Select the Purchase Ledger and the appropriate VAT/Tax Class appears
4. Select the stock item from the List of Items and enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
5. Accept the Debit Note.
Creating a Credit Note
To create a Credit Note for Sales Retums,
Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8; Credit-Note
1. Enter the reference number in the Ref. field.
2. Select the Party's A/c Name from the List of Ledger Accounts.
3. Select the Sales Ledger and the appropriate VAT/Tax Class appears.
4. Select the stock item from the List of Items and enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
5. Accept the credit note.
Creating a Payment Entry with Narration for each Entry
If you want the narration details for every ledger you debit or credit (Single narration), you can configure Tally ERP's Narration details accordingly
To activate the option Narration for each entry,
Go to Gateway of Tally Accounts Information > Voucher Types
> Alter
1. Select the required Voucher Type.
2. Enable the option Narrations for each Entry and accept the details.
3. Return to Accounting Vouchers in Gateway of Tally and select the voucher type and pass the entry.
Narration for each entry option is available for all Accounting Voucher Types. Given below is an example of a Payment transaction with narrations for each entry enabled:
The above entry consists of both common narration and narrations for each entry. In case of multiple debit/credit entries, you can give single line narration separately for every ledger account selected.
Special Keys for Voucher Narration Field
ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Creating a Journal Entry
1. Journal entries are usually used for finalization of accounts
2. To pass a Journal Voucher,
3. Go to Gateway of Tally > Accounting Vouchers
Cliekon F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest due. If you have to receive Interest from a party, the same can be entered using Journal Voucher.
1. Debit the Party
2. Credit the Interest Receivable Account
The Journal entry is displayed as shown:
Restoring Backup
Restore means return to the original, usable and functional condition. The Restore functionality allows you to restore the data backup taken earlier.
The existing Restore utility is enhanced with an additional capability to restore data backup of multiple companies taken using the Auto Backup feature. The backup of multiple companies is stored in a single file named TABK 900 in the user defined path provided while configuring auto backup.
While restoring the auto backup data, Tally ERP 9 displays the backup version followed by the last update time This allows the user to select and restore the latest backup
The user must ensure the following points before restoring data backup:
1. Do not restore old or irrelevant data.
2. Do not restore data from a damaged media.
3. Do not restore data in the same folder as the existing data, since it may overwrite the existing data.
To restore the back-up taken on another media, execute the following steps:
Go to Gateway of Tally > Press Alt + F3 orelick F3: Cmp Info
The Company Info menu appears
Select Restore.
The Restore Companies on Disk screen appears, enter the following details
1. Destination-is the path or the folder where data backup needs to be restored.
2. Source is the folder or path where data backup file or auto backup files for multiple companies are stored. The path specified can be on the same storage device/external storage device or a storage device on the network.
Restore
In the BackUp section
Select the required company or companies from the list of companies displayed to restore the data or select All Items to restore data of all the companies available.
Accept to continue restoring the data backup.
The Restoring Companies screen displays the status of data being restored.
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.
Enable Value Added Tax (VAT)
To enable Value Added Tax (VAT) in Tally ERP 9, follow the steps given below:
Go to Gateway of Tally > F11; Features
Select Statutory & Taxation (F3) and press Enter
In the Statutory & Taxation screen,
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
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)
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)
Save screen
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
The VAT Invoice is printed as shown
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 Annexures
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 to VAT.
To view VAT Computation Report
Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation
VAT Forms
The VAT Retum Forms are State specific VAT Forms and Annexures to be submitted by the registered 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
The printed VAT Form 100 of Karnataka state will appear as shown:
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
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.
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 collection 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.
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
Save screen
Create Stock Items for CST Sales
Go to Gateway of Tally > Inventory Info. > Stock Items >
Create
Specify name and other details.
Save screen
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