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Sunday, 17 September 2017 10:44

Creating a Single Group

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You can create a single group in Tally.ERP 9 and configure its details as per your requirement. You can also view, alter or delete single groups that you have created.

Creating a Group

To create a single group

1.    Go to Gateway of Tally > Accounts Info. > Groups.

2.    Click the option Create under Single Group. The Group Creation screen appears.

3.    Enter the Name of the group.

4.    Enter the Alias name, if required.

5.    In the field Under, from the List of Groups displayed, select the parent group under which the group has to be classified. For example, Indirect Expenses.

Note: Groups can be created under the group Primary, if required. To classify a group under Primary, the option Allow Advanced entries in Masters should be enabled in the Master Configuration screen.

The Group Creation screen appears as shown below:

6.    Click Yes to accept the screen.

A group can be created for advanced usage, with more options to configure, by setting the option Allow Advanced Entries in Masters in F12: Configure.

Displaying a Group

To display a group

1.    Go to Gateway of Tally > Accounts Info. > Groups.

2.    Click the option Display under Single Group.

3.    Select the name of the group required from the List of Groups displayed. The ledger display screen appears as shown below:

Note: In the display mode , group details can't be modified.

Altering a Group

The details entered in a group can be modified when required.

To alter a group

1.    Go to Gateway of Tally > Accounts Info. > Groups.

2.    Click Alter under Single Group.

3.    Select the name of the group required from the List of Groups displayed.

4.    Make the necessary changes in the Group Alteration screen.

5.    Click Yes to save the changes.

Deleting a Group

Groups can be deleted from the alteration screen. Only one group can be deleted at a time.

To delete a group

1.    Go to Gateway of Tally > Accounts Info. > Groups.

2.    Click the option Alter under Single Group.

3.    Select the name of the group required from the List of Groups displayed.

4.    Click D: Delete.

5.    Click Yes to confirm deletion.

Note: A group cannot be deleted if:

         The group has sub-groups.

         The group has ledgers classified under it.

         The group is a predefined master.

Thursday, 14 September 2017 10:16

Pre-Defined Groups

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There are twenty eight pre-defined groups in Tally.ERP 9. These groups are a part of the chart of accounts for most organizations. For example, Sales Accounts is a pre-defined group. All sales ledgers can be classified under this group.

Out of the twenty eight pre-defined groups, fifteen are primary groups and thirteen are sub-groups. The user can create any number of primary groups and sub-groups.

Primary Groups
Subgroups
Branch / Divisions
 Bank Accounts
 Capital Account
 Bank OD A/c
 Current Assets
 Cash-in-hand
 Current Liabilities
 Deposits (Asset)
 Direct Expenses
 Duties & Taxes
 Direct Incomes
 Loans & Advances (Asset)
 Fixed Assets
 Provisions
 Indirect Expenses
 Reserves & Surplus
 Indirect Incomes
 Secured Loans
Investments
Stock-in-hand
Loans (Liability)
Sundry Creditors
Misc. Expenses (ASSET)
Sundry Debtors
Purchase Accounts
Purchase Accounts
Sales Accounts
Suspense A/c

Out of the fifteen primary groups, nine primary groups appear in the balance sheets that are capital in nature and six primary groups appear under Profit & Loss account which are revenue in nature.

The sub-groups that form a part of the balance sheet are:

Pre-defined Subgroups

Under

Bank Accounts

Current Assets

Bank OD A/c

Loans (Liability)

Cash-in-hand

Current Assets

Deposits (Asset)

Current Assets

Duties & Taxes

Current Liabilities

Loans & Advances (Asset)

Current Assets

Provisions

Current Liabilities

Reserves & Surplus

Capital Account

Secured Loans

Loans (Liability)

Stock-in-hand

Current Assets

Sundry Creditors

Current Liabilities

Sundry Debtors

Current Assets

Unsecured Loans

Loans (Liability)

Note: Primary groups cannot be deleted.

Thursday, 14 September 2017 06:32

Default Groups

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In Tally.ERP 9, there are a number of default Groups that can be used for various accounts.

Capital Account

This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share Capital, Partners' Capital A/c, Proprietor's Capital Account and so on.

Reserves and Surplus [Retained Earnings]

This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so on.

Current Assets

Current Assets record the assets that do not belong either to Bank Accounts or to Cash-in-Hand sub-groups.

Bank Accounts: Current account, savings account, short term deposit accounts and so on.
 
 Cash-in hand: Tally.ERP 9 automatically creates Cash A/c in this group. You can open more than one cash account, if necessary.
Note: An account under Cash-in-hand group or Bank Accounts/Bank OCC A/c group is printed as a separate Cash Book in the traditional Cash Book format and does not form part of the Ledger.
 Deposits (Asset): Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company (not received by the company, which is a liability).
 
Loans & Advances (Asset) This records all loans given by the company and advances of a non-trading nature (example: advance against salaries) or even for purchase of Fixed Assets. We do not recommend you to open Advances to Suppliers’ account under this Group. For further details, please refer to the section on Common Errors.
 
 Stock-in-hand: This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods. The balance control depends on whether you have selected Integrated Account-cum-Inventory option while creating the company. (refer to Company creation section for more details) Let us consider these options:
 
Integrated Accounts-cum-Inventory: This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures from the inventory records and provides a drill down to the Stock registers from the Balance Sheet. You are not allowed to directly change the closing balance of an account under this group. You are allowed to pass transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock.
 

Non-integrated Accounts-cum-Inventory: If Integrated Account-cum-Inventory option is set to No, it ignores the inventory books figures and picks up manually entered closing stock balances from the ledger account created. This provides the facility to maintain accounts separately and inventory separately.

 

You are not allowed to pass transactions if your accounts that come under this Group. It allows you to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they are the only accounts for which the closing balances can be directly altered (by an authorised user only).

 

Sundry Debtors: For customer accounts refer to common and possible errors in grouping of accounts section.

Current Liabilities

Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry Creditors

 Duties and Taxes: Duties and Taxes contain all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and the total liability (or asset in case of advances paid) and the break-up of individual items.

 

 Provisions: Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions.

 

Sundry Creditors: For trade creditors, refer to common and possible errors in grouping of accounts section.

Investments

Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts and so on. This allows you to view the total investments made by the company.

Loans (Liability)

Loans that a company has borrowed, typically long-terms loans.

 Bank OD Accounts [Bank OCC Accounts]:  Tally.ERP 9 provides you with distinct types of Bank Accounts,

 

Bank OCC A/c: To record the company's overdraft accounts with banks. For example, Bill Discounted A/c’s and Hypothecation A/c’s etc.

Note: An account under Bank OCC A/c group is printed as a separate Cash Book in the traditional Cash Book format and does not form part of the Ledger.

Secured Loans: Term loans or other long/medium term loans, which are obtained against security of some asset.   does not verify the existence of the security. Typical accounts are Debentures, Term Loans, and so on.

 

 Unsecured Loans: Loans obtained without any security. Example: Loans from Directors/partners or outside parties.

Suspense Account

In modern accounting, many large corporations use a Suspense Ledger to track the money paid or recovered, the nature of which is not yet known. The most common example is money paid for Traveling Advance whose details will be known only upon submission of the Travelling Allowance bill. Some companies may prefer to open such accounts under Suspense Account.

Loans and Advances (Asset) group: The Suspense Account is a Balance Sheet item. Any expense account even if it has 'suspense' in its name, it should be opened under Revenue group like Indirect Expenses and not under Suspense Account group.

Miscellaneous Expenses (Asset)

This group is typically used for legal disclosure requirements such as Schedule VI of the Indian Companies Act. It should hold incorporation and pre-operative expenses. Companies would write off a permissible portion of the account every year. A balance remains to an extent that cannot be written off in Profit & Loss Account. Tally.ERP 9 does not show loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss Account balance is displayed separately in the Balance Sheet.

Branch/Divisions

This maintains ledger accounts of all your company's branches, divisions, affiliates, sister concerns, subsidiaries and so on. Tally.ERP 9 permits Sales and Purchase transactions to take place with accounts opened here. Remember, these are their accounts in your books and not their books of accounts. Just treat them as any other party account. If you wish to maintain the books of a branch/division on your computer, you must open a separate company. (Tally.ERP 9 allows maintenance of multiple company accounts).

Sales Account

You can classify your sales accounts based on Tax slabs or type of sales. This also becomes a simple mechanism for preparation of Tax returns.

For example,

     Domestic Sales

     Export Sales

Now under Domestic Sales open the following ledgers:

     Sales (10%)

     Sales (5%)

     Sales (exempt)

You can even open an account as Sales Returns under the group Domestic Sales to view your net sales after returns (or the returns may be directly passed through Journal against the specific Sales account).

Note: Do not create customer accounts under this group. For more details, refer to common and possible errors in grouping of accounts section.

Purchase Account

This is similar to sales accounts, except for the type of transactions.

Direct Income [Income Direct]

These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under Sales Accounts. You may also use this group for accounts like Servicing, Contract Charges that follow sales of equipment.

For a professional services company, you may not use Sales Account group at all. Instead, open accounts like Professional Fees under this group.

Indirect Income [Income Indirect]

These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.

Direct Expenses [Expenses Direct]

These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

Indirect Expenses [Expenses Indirect]

All administrative, selling or non-direct expenses.

Profit & Loss Account is a reserved primary account in Tally.ERP 9. You can use this account to pass adjustment entries through journal vouchers. For example, transfer of profit or loss account to Capital or Reserve account.

Common and Possible Errors in Grouping and Account Classification

Debtor/Creditor classification

Accounts of parties with whom your company is trading should be opened under any of the following groups (or sub-groups under them):

     Sundry Debtors

     Sundry Creditors

     Branch/Divisions

Sales and Purchase account groups are meant for revenue accounts and are reflected in the Profit & Loss Account. If you open party accounts under these groups, it becomes difficult to pass sales or purchase voucher transactions.

For example, in a sales voucher transaction entry, you must debit an account, which can be sundry debtor, branch/division or even a sundry creditor. Moreover, other facilities like bill-wise allocation and tracking will not be available unless the accounts belong to one of these groups.

Opening two accounts of the same party

Tally.ERP 9 classifies debtors, creditors and branch/divisions for convenience. This helps you in the process of keeping the accounts of a particular group together during display and analysis. Thus you can pass both sales and purchase entries for a party account placed under Sundry Debtors. Use the classification depending on the most natural group for the party.

For example, parties from whom you buy frequently can be placed under Sundry Creditors, as that is the natural place to look for their account. Tally.ERP 9 does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account.

Therefore, you need not open two accounts for the same party - one under Sundry Debtors and another under Sundry Creditors. Tally.ERP 9 restricts opening of two identical ledger accounts. In such cases, you may decide to circumvent by marking one account as "A & Co - S/Dr" and another "A & Co - S/Cr". This will allow you to have two accounts of the same party under two groups, but you will lose the advantage of analyzing net position at a single instance. It is always better to maintain a single account to obtain best benefits.

Expenditure items are entered under Liabilities group. For example, the expenditure item Rates & Taxes under the group Duties and Taxes.

The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other statutory expenses should be placed under Indirect Expenses.

Simply adhering to the reserved groups may be sufficient for many organizations. For greater diversity, Tally.ERP 9 allows you to create your own groups, either as sub-groups or primary groups. Groups can be sub-classified to practically an unlimited level, giving you a virtual accounting tree. At the lowest level, of course, would be the ledger account.

Note: While it is necessary to assign every ledger to a group/sub-group, it is not essential to have your own sub-classification of accounts; you may simply use the reserved groups for grouping your ledger accounts.

Thursday, 14 September 2017 06:28

Groups

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Groups are collection of ledgers of the same nature. Account groups are maintained to determine the hierarchy of Ledger Accounts, which is helpful in determining and presenting meaningful and compliant reports.  

Tally.ERP 9 has the flexibility of setting user required chart of accounts.  You can group the Ledger accounts under the required Groups at the time of creating the chart of accounts or you can alter them at any time.  

The Group behavior is classified into Capital or Revenue and more specifically into Assets, Liabilities, Income and Expenditure.  The Groups ascertain whether the same will affect Profit and Loss Account which is revenue in nature or Balance Sheet which is capital in nature.

Thursday, 14 September 2017 06:09

Accounts Information

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The accounts information lists accounting masters like groups, ledgers and voucher types with which you can provide company's account details.

Accounts information provides:

     Single master option to work with one master at a time.

     Multiple masters option to work with many sub-masters at a time. A sub-master behaves exactly like a master. 

To access the accounts information

1.    Go to Gateway of Tally > Accounts Info.

Accounts information for ledgers, groups or voucher have the following functions:

Function
 Description
Create
To create new masters.
Display
To view the master information.  Master information cannot be modified in the display mode.
Alter
To view and make changes to the master information. You cannot create masters in the alter mode.

 

Setting F11: Features

To set the F11: Features

1.    Go to Gateway of Tally > F11: Features > F1: Accounts.

2.    Select the company from the List of Companies. The Accounting Features screen appears as shown below:

See F11: Company Features in Tally.ERP 9 for details.

Setting F12: Configure Option

To set F12: Configure

     Go to Gateway of Tally > F12: Configure > Accts / Inventory Info. The Master Configuration screen appears as shown below:

Note: The configurations is applicable for all ledger masters. Changes can be made in the Ledger Configuration screens as well.

Thursday, 14 September 2017 05:50

Creating Masters

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Introduction to Creating Masters

You can refer to the topics in the following table for detailed information on creating masters.

Accounts Information

  Groups

Ledgers

Vouchers Types

Inventory Information

 Inventory Configurations and Features

Stock Groups

Stock Categories

Stock Items

Units of Measurement

Bills of Material  Batches and Expiry Date

Tuesday, 29 August 2017 12:30

Statutory & Taxation

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  • From Gateway of Tally, go to Features by pressing F11 and you will see a menu as in the picture below.
Company Features Menu in Tally

Company Features Menu in Tally

  • Now, go to Statutory & Taxation and you will see a screen which is called Company Operations Alteration.
    Company Operations Alteration Screen in Tally

    Company Operations Alteration Screen in Tally

    Do you notice the name of the screen – Company Operations Alteration on the top left hand corner of the picture.

    Sometimes small things matter the most and that name is indeed in a small size.

    This is the level of detail and effort I put into to create each and every post and video on TallySchool.

    I just want to make sure, you understand Tally in detail and in a better way.

  • Now, you see two options.
    • Enable Goods and Services Tax (GST)
    • Set/alter GST details
  • First, we will enable GST in Tally and then we will Set the GST Details.
  • Well, enabling is pretty easy.
  • Press Y in the option Enable Goods and Services Tax (GST) and press Enter.
  • Congratulations! You have enabled Goods and Services Tax in Tally.

I know this was just a simple step but it is required in order to go ahead and set the GST details in Tally.

Enabling the GST in Tally will open up all the functions of GST in Tally. This includes GST functions in ledgers, reports, returns and so on.

You may think it is just a small step, but trust me it is a big step which affects the whole functioning of Tally.

Now, you will see GST option in almost every place in Tally which previously was not available.

Moving forward, let me show you how to set and alter GST details in Tally.

How to Set GST Details in Tally

You will need the following to set GST Details in Tally.

  • a valid GSTIN – Goods and Services Tax Identification Number,
  • Rate of GST – for example – 28% IGST divided into 14% CGST and 14% SGST and
  • HSN Code – Harmonized System Nomenclature which is different according to the product or service you sell.

You will have all the details if you have registered for GST on the GST Portal.

If you do not have any of the above details, it is perfectly okay. You can simply go through this post to know the method to set GST details in Tally.

In fact, I will be using fake GSTIN and fake HSN for the explanation of this post.

So, hop on with me. Let’s start. ?

I am assuming you are already at the Company Operations Alteration screen where you enabled GST.

  • Press Y against the Set/alter GST details option and press Enter.
  • You will see the Company GST Details screen as shown in the picture below.
Set GST Details in Tally

Set GST Details in Tally

  • First option is State – Select your State or the state in which the business is located. Mine is Gujarat.
  • Second option is Registration type – Regular
  • GSTIN/UIN – Enter the GSTIN or UIN. It will be printed on the invoices later when you create ledgers related to GST in Tally.
  • Applicable from – This is date from which GST is applicable to you. Most probably it will be 1st July, 2017.
  • Set/alter GST rate details – This is where you will enter the rates of GST according to the product you sell.
    • Press Y and press Enter to enter the rates and HSN details as in the picture below.
GST Tax Rate Details in Tally

GST Tax Rate Details in Tally

    • Write the Description about the goods or services you sell on the basis of your HSN Number.
    • Enter the HSN Number.
    • In Tax Details, there are 3 options.
      • Exempt
      • Nil Rated
      • Taxable
    • Most probably, you will have to select Taxable option because your goods or services will be taxable under the GST.
    • Next option is Integrated Tax under Tax Type. Tally calculates both the Central and State Taxes exactly half for each of them.So when you enter 28% Integrated Tax, it will be divided into 14% for CGST and 14% for SGST automatically.You can also enable Central and State Tax option if you want to see columns for both of them instead of one integrated tax column. Here is how you can do it.
Tuesday, 29 August 2017 12:19

General Printing Configuration

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The printing configuration available in Tally.ERP 9 helps you customise your reports. You can enable or disable options in the General Printing Configuration screen, as required. The configurations set here are applicable to all reports and vouchers in Tally.ERP 9.

To view the general printing configuration screen

1.    Go to Gateway of Tally > click F12: Configure > Printing > General. The General Printing Configuration screen appears as shown below:

2.    Enable the option Print data and time of report? to print the data and time in the reports.

3.    Enable the option Print data and time of voucher printing? to print the data and time in the vouchers.

4.    Enable the option Print country, state and Pincode with address?, if required.

5.    Disable the option Stop printing vertical lines and borders? to print vertical lines and borders in the reports and vouchers.

6.    Enter the required margin space in the print report in the field Page margin on top (in inches).

7.    Enable the option Print using Greyscale on Black & White printers?, if required.

8.    Enable the option Split long names into multiple lines? for better readability.

9.    Enable the option Split long amounts/numbers into multiple lines? for better readability.

10.  Enable the option Print party name and address from left margin in invoice?, if required.

11.  Press Ctrl+A to save the configuration.

Tuesday, 29 August 2017 12:17

Printing Configuration

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You can use the printing feature in Tally.ERP 9 to print your vouchers, invoices, sales and purchase orders, and various others statements. Additionally, you can customise your print by enabling the required options in the printing configuration.

Tuesday, 29 August 2017 12:15

Banking Configuration

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You can configure your BRS report and alter the reconciled vouchers in Tally.ERP 9 by enabling the required options in the Banking Configuration screen.

To view the Banking Configuration screen

1.    Go to Gateway of Tally > F12: Configure > Banking Configuration. The  Banking Configuration screen appears as shown below:

2.    Enable the option Show all unreconciled transactions in BRS till date to view all the unreconciled transactions till the given date, irrespective of the From date set in the Bank Reconciliation Statement.

3.    Enable the option Remove bank date on altering reconciled voucher to remove the bank date (reconciled date) of a reconciled voucher on changing the bank ledger/amount or bank transaction amount.

4.    Alter the location of the statements or files specified, if required.

5.    Enable the option Show details before export? to view details of the transactions for which the payment instruction is being exported.

6.    Press Ctrl+A to save.

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