TALLY

TALLY

There are many accounting packages are available in the market, Tally remains

the undisputed king of all financial accounting packages available in India. Tally

is capable of handling any kind of transaction you would need, whatever your

business. In order to use tally, you neither need to learn new accounting methods

nor should change your existing style of handling accounts. The information can

be fed as well retrieved at random and all human errors can be corrected.

A transaction in accounting terminology means transfer of money or money‟s

worth from one party to another, for example sale of goods, purchase of furniture

etc. are examples of transactions. Fundamentally there are two systems of

transactions: Pre transaction and post transaction. Let us explore it in detail,

assume that you have to make payment to a party, in pre transaction, this is

done by first creating a voucher, which is signed by payee and then the

transaction is completed by actually making the pay creation of internal entries in

case of completed transactions. The post transaction system follows the

traditional practice of entering a voucher or cash bill into a cash book after the

payment has been made. Tally is a post transaction system. It follows the

traditional methods of accounting, that is, the payment is first made on the basis

of existing accounting methods (i.e., against a voucher or a cash bill) and that

information is fed into the Tally.

The simple fact that your existing system of accounting remains

untouched by Tally is a big reason behind the success of this package.

Prerequisites for the learning tally .The area of the Tally is very wide, you could

be the owner, financial controller, accountant, manager or an auditor. All that is

required to learn Tally is fundamental knowledge of accounts and familiarity with

basic accounting terminology. This means that you should understand certain

basic terms like an account, a debtor, a creditor, assets, liabilities, capital etc.

Even if you are not well versed with the accounting, you can still use Tally

effectively at the same time become known to accounting methods.

Tally have many versions like 3.0, 4, 4.5, 5.0 5.4 etc. Tally release 5.0 and

5.4 are window based software in which you feel the window look like programs,

than the text based screens.

INTRODUCTION TO TALLY SCREEN



Following figure shows the screen of tally when you start tally for first time.









(Figure 1.1)



The tally screen is divided into three parts: Gateway of Tally, Direct

Command Area and The Buttons.

Let us discuss each part of Tally

 Gateway of Tally(THE ACTUAL WORK AREA)



It is the area in which you actually work. You can activate this area either by

clicking any where in this area or by pressing + key combination.

Direct Command Area:



Although Tally supports mouse commands, you can execute all commands in

plain English from a keyboard by typing them in this area. You can activate this

area either by clicking anywhere in this area or by pressing + key

combination.

The Buttons :



This area contains buttons which perform various useful functions. For

example the second button in this area has a caption “F4:Backup” this means

that in order to take backup of a company on floppy disk you will have to either

click on this button or press the key. The third button has caption

“F4:Restore” this means that in order to restore a company whose backup had

been already taken on floppy you will have to either click on this button or

pressKeycombination.

¨



Company Information Menu:-



The right half of the Gateway of Tally area displays the company info. Menu

This menu has following three options:-

1.SelectCompany

2.CreateCompany

3.Quit

Creating a New Company

In order to create a new company for accounting following screen will appear :









(Figure 1.2)





Once you have created a company then you are ready for maintaining account

forthe company. You have to feed all the information given in above figure and

then save it. You can also alter any information given above in the figure.

When you have created company then go to main menu and select company

by giving username and password (if you have enabled the security) when you

select a company then following screen will appear.









(Figure 1.3)



in the left hand side of the screen you will see the information about company

selected like current period financial year of books, name of company selected

etc. On right hand side of screen you will see the Gateway of Tally.

GATEWAY OF TALLY

Account Info:-

This option permits you to handle all the information related to financial

accounts. It allows you to work on creation and maintenance of masters like

Ledgers, Cost Centers, Cost Categories and other related information.



Inventory Info:-

Using this option you can handle information relating to the inventory accounts.

It enables you to work on stock items, stock groups, stock categories, units of

measurement and other inventory related information



Voucher Entry:-

This is the most frequently used option. It allows you to make daily vouchers as

well as invoices.



Balance Sheet:-

This option displays the balance sheet of your company as at the last voucher

entered.



Profit and Loss Account:-

This option allows you to take a look at gross profit and net profit for both

opening and closing stock.



Stock Summary:-

This option displays the stock position of all items in stock as at the last entry

made.



Display:-

This option enables you to view all reports like, Trial Balance, Account Books,

Statement of Accounts, Inventory Books, Statement of Inventory, Cash Flow,

List of Accounts etc.



Multi-Account Printing:-

Choose this option to print Account Books, Inventory Books and Day Book.



Quit:-

This option allows you to Quit Tally.

ACCOUNTING IN TALLY

Accounting is the language of business, it involves identifying, measuring and

presenting economic information about a business in such a manner that the

user of t he information can use it for opinions about the business, judge its

performance and take certain decision. For this reasons certain norms and

systems of accounting have been developed perfected.





The best thing in tally is that it does not follow a tailor made accounting

pattern but allows the user to customize its according to his/her requirements.

Initially you have to setup an accounting chart for the company.

Creating Master Accounts:-

You can create master for both accounts and inventory by providing

information regarding both accounts and inventory. We will start from creating

account masters.

Account Information:-

In order to work on the master of accounts of a company, first activate

the desired company then Gateway of Tally menu appear on the screen









(Figure 2.1)





Select option “Account Info”

Then following menu will appear:









(Figure 2.2)

Group:-

During manual accounting the accounts (ledger) are grouped upon

preparation of Trial Balance to prepare Profit & Loss account and Balance

Sheet which reflect the final accounts of the company. In tally the concept

remains analogous. Following screen will appears when you select Group

option.









(Figure 2.3)





Means you can create, display, alter single and multiple account

groups.





Ledger:-

The next option after group in Account info menu is Ledger( See

following figure 2.4)

In this menu you can create, display and alter single and multiple ledger

accounts.









(Figure 2.4)



Voucher Types:-



A voucher is basically an on-line document for recording day to day

transactions and is perhaps the most frequently hunted area of Tally. Tally by

default provides 18 types of predefined vouchers are unable to fulfill your

requirements then Tally also gives you a provision to alter these existing types

according to you need. For example, Tally provides a „Payment voucher‟, if you

need more than one type of payment voucher, say Petty cash Payment voucher

and Cash payment voucher then Tally has a provision to create these new

types. Following are the voucher type provided by Tally.









Tally Features

 Accounting Features

Accounting without CODES! The only sensible way to keep your records is to

useregular names for your accounts. With unlimited levels of classification

available inTally, you can manage the most complex ledger systems with ease.



Unified Ledgers: Tally pioneered the concept of Unified Ledgers, where the

General,Sales and Purchase Ledgers are integrated into a Single Ledger and

organised under groups for easy management. This concept combines the power

of reporting along with the ease of data entry.



Complete Book-Keeping: Record transactions using a unique voucher entry

system that is easy and flexible to configure for diverse transactions.



Comprehensive Accounting: Instantly obtain your Balance Sheets, Profit &

Loss Statements, Cash and Funds Flows, Trial Balances and so on.



Multi-Currency Accounting: Tally handles unlimited currencies and manages

the complexities of Forex Gain/Loss, intelligently. A single transaction may

contain more than two currencies.



Bill-wise Tracking of Trading and Non-Trading Accounts: Tally tracks Party

accounts or Loan Accounts on a Bill-by-Bill basis (for example, new bills raised,

payments, receipts, adjustments against bills).



Interest Calculation: Tally has completely definable Interest Calculation

methods. You can tackle problems with methods definable for each transaction.

Receivables and Payables: Dynamically allocate payments against invoices

with reference to due dates. Reports are classified, grouped and aged to your

definitions.You can have customisable reminders for overdue, as well as

measure payment performance, segregating your good and bad customers.



Ratio Analysis: A range of key performance ratios, on a single sheet, puts you

in total control of your business.Budgeting, Auditing and Security Control: Use

Original and Revised Budgets over varying periods. Define security levels to

control access and use the powerful Audit capabilities to track malafide changes,

while making genuine corrections with unparalleled ease.



Scenario Management: Use Optional, Reversing Journals and Memorandum

Vouchers to record provisional entries. For example, use Optional Vouchers to

record provisional sales and compare with actuals. Prepare reports, including

provisional figures, without affecting actual accounts, using automatic reversing

journals.



Unlimited Cost/Profit Centres: With Power Project Oriented Reporting -

Projects,Departments, Marketing Zones are just a handful of analysis criteria that

you can use with Tally. Allowing unlimited sub-classification, Tally gives you

multi-dimensional analysis and comparatives.



 Inventory Features

Multi-Location Stock Control: Use Tally to keep track of your stock at single or

multiple locations. Create unlimited classification systems for your Items and

Units of Measure.



Comprehensive Recording of Stock Movement: Record inventory transactions

easily and comprehensively using Goods Receipt Notes, Delivery Notes, Stock

Transfer Journals, Manufacturing Journals as well as Physical Stock Journals. All

stockmovements are fully recorded and maintained in Stock Registers.



Management Reports: Movement Analysis gives party-wise details of goods

bought and sold and helps to identify good and bad business partners. Stock

Query is a unique single sheet report that gives information on stocks at different

locations as well as totalstock-in-hand.



Aged Stocks Analysis: Identifies old stocks to aid decisions relating to their

quick disposal. Batch-wise or Lot-wise Inventory with Expiry: Use the concept of

Batches or Lots to track stock at the batch level



Re-Order Levels and Minimum Order Quantities: Know your stock order

position with the comprehensive Order Status reports in Tally. Specify re-order

levels in absolute quantities, or based on previous consumption.

 Sales and Purchase Order Processing

Sales and Purchase Orders: A comprehensive facility to record orders with a

complete cycle of recording and allocating them through inventory deliveries,

invoicing and accounting. Single sheet reports give current stocks, orders due for

delivery, orders due for receipt, shortfalls (if any). Obtain party-wise or item-wise

details of outstanding and/or fulfilled orders. Invoicing Sales invoices are

produced directly from Tally. Print, Export, E-mail or Publish them. Tally has a

comprehensive invoicing system that allows flexible handling of charges and

taxes. The invoice is available in different formats. Adopt them or design a

completely different layout.



 Performance and Implementation Features

Rapid Implementation: This means low start-up costs, with the lowest training

requirements of any accounting system in the world! A consistent data entry

interface has your accounting up and running in minutes.



Real Time Processing: Tally updates all your books, ledgers and reports as

soon as a transaction is accepted. There is no need to specifically ask for an

update. Your statements are always ready with the last saved transaction.

Speed: The only reason to automate your accounts is to get information FAST.

Tally outdistances all other systems with its „faster-than-thought‟ performance.



Unlimited Companies and Periods of Accounting: Handle the accounts of

more than one company (simultaneously, if desired). Compare data across

companies and financial periods. View information for any period (for example,

19 months). Consolidate companies with a single keystroke!



Unbelievable Period-End Handling: The unique date-driven approach of Tally,

with dynamic and automatic periods, makes the financial year-end simple and

hassle free. Dynamic Interactive Reports and Unique Drill Down Facility: All

reports are dynamic and allow further interrogation from summary to the actual

transaction voucher.



Comprehensive Print Capabilities: Print quotations, orders, invoices, vouchers

and cheques through Tally. Choose from several default formats, use ODBC

compliant systems to print other special formats, or contact us to meet your

requirements.



Print Preview: View reports and their layouts, prior to actual printing.

 Other Features

Synchronization in Tally helps you to transfer data between two or more

locations. (Example: A Branch Office and the Head Office of a company reside in

two different locations). Synchronization can be done, both ways (Example:

Either transfer the datafrom Branch Office to Head Office, or vice-versa).



E-mail reports and documents directly from Tally.



Publish reports in HTML on the Web or the Intranet and share them with your

suppliers, customers or staff.



Direct web browsing capability, from within Tally, avoids switching between

programs.



Exchange data with other systems using XML. Tally gives you the means to

collaborate with others and share information like never before.



ODBC connectivity enables you to integrate Tally data dynamically into other

ODBC systems. For instance, you can design a remittance advice in Excel/Word

and embed fields from Tally like Customer name and address, account balances

and so on, into the Excel/Word format.