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									                  2010


Tally.ERP9 Year End Process




                  Mr. Nitin Sarda
                  Winjit Technologies Pvt. Ltd.
Tally.ERP9 Year End Process                                     29 March 2010


                                       DISCLAIMER



      THE VIEWS EXPRESSED IN THE DOCUMENT ARE AUTHOR’S PERSONAL

      OPINION AND THE AUTHOR WILL NOT BE HELD RESPONSIBLE.

      Document Change History

       Version No.        Date            Description

      Version 1.0    29 March 2010   Version 1




                                      www.winjit.com (WINJIT)   Page 2
Tally.ERP9 Year End Process                                                                                                                                    29 March 2010


                                                                   Table of Contents

      1      INTRODUCTION .......................................................................................................................... 4


      2      PERIOD ......................................................................................................................................... 5


      3      HOW TO SWITCH TO ANOTHER PERIOD .............................................................................. 6


      4      STOCK IN TRADE ....................................................................................................................... 7


           4.1    FOR INTEGRATED ACCOUNT .................................................................................................................... 8

           4.2    FOR NON INTEGRATED ACCOUNTS (NON INVENTORY COMPANIES) ................................................................ 9


      5      JOURNALS FOR TRANSFERRING THE EXPENSES & INCOMES .................................... 14


      6      INTEREST ................................................................................................................................... 15


      7      DEPRECIATION ......................................................................................................................... 19


      8      FOREIGN EXCHANGE GAIN/ LOSSES.................................................................................. 20


      9      COMPARATIVE REPORT /RATIO ANALYSIS/ PERCENTAGE, ETC ................................ 22


      10     SPLITTING OF THE COMPANY DATA................................................................................... 25


           10.1       BACKUP ........................................................................................................................................ 25

           10.2       SPLITTING THE DATA........................................................................................................................ 25

           10.3       MANAGING THE DATA FOLDER ......................................................................................................... 27


      11     HOW TO SET SECURITY LEVELS FOR PROTECTING PREVIOUS PERIOD ENTRIES

             ERROR! BOOKMARK NOT DEFINED.


      12     CHANGES TO BE MADE IN VOUCHER CLASSES, IF ANY / LEDGER FOR NEW VAT

      RATES ................................................................................................ ERROR! BOOKMARK NOT DEFINED.


      13     ABOUT WINJIT TECHNOLOGIES PVT. LTD. ........................................................................ 28




                                                                     www.winjit.com (WINJIT)                                                                  Page 3
Tally.ERP9 Year End Process                                                        29 March 2010



      1 Introduction

      As everyone knows, there are number of activities to be carried out for

      finalization/ closure of Accounts on the year end (i.e. 31st March ) every year in

      Tally.ERP9.



      There are certain procedures, reports available in Tally.Erp9 which will smoothen

      the process & save the time for closure of Books as well as New Year books.




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Tally.ERP9 Year End Process                                                       29 March 2010



      2 Period

      There is no formal concept of period in Tally.Erp9. It means, we can keep books

      for more than one year in a company.

      Only the following concepts are applicable in tally for defining default period

      available for report & entries.

        i.   Period Starting from :

      On the company creation screen when we set the financial period starting from =

      “dd/mm/yyyy” (generally 01st of April) the default period for entry will be 12

      Months from the date set. E.g. If we set financial year starting from 01/04/2009,

      then default period (i.e. the period appearing when we start Tally) will be

      01/04/2009 to 31/03/2010

      Navigation: Gateway of Tally - > Select Company -> F3 – Alter




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Tally.ERP9 Year End Process                                                           29 March 2010


      3 How to switch to another period

      On the gateway of tally, in the left hand upper part, the current period is

      displayed. This is the default period for entries, reporting, etc. (Though internally

      tally may have the data for more than one year for the company).




      To Start New Financial Year (i.e Default Period for next year), we will have to

      select period button on the right hand side

      Navigation: Gateway of Tally -> Alt+F2 (period Button)

      Enter/ Change period

             From          (e.g. 01/04/2009)

             To            (e.g. 31/03/2010

      After making any entry in next financial year, Tally will automatically start new

      period from next session.




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Tally.ERP9 Year End Process                                                        29 March 2010



      4 Stock in Trade

      Exact profit will be determined only after entering the Stock values at the end of

      the period. There are two methods available in Tally.ERP9 i.e. Integrated

      Accounts and Non integrated Accounts.

      Integrated Accounts means the stock will be reflected as appearing in the stock

            summary (based on the valuation method selected for a particular item).

      Non Integrated Accounts means stock value has to be entered manually. In

      this type, we will have to make Ledgers entries under Stock in Hand group.

      To set Integrated / Non Integrated Inventory option

      Navigation: Gateway of tally -> Press F11 -> Accounting Features

      Select the appropriate option




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Tally.ERP9 Year End Process                                                       29 March 2010


      4.1 For Integrated Account

      For Integrated Account, there is no need to pass any entry, tally will by default

      picks up the values appearing in Stock Summary.

      The valuation is based on the settings of Item Master



      Navigation: Gateway of Tally -> Inventory Info - > Stock Item -> Alter

      Press F12 & confirm that advance entries in master option is set to YES




      Confirm the method required for valuation (most of the time it should be FIFO for

      trading items, etc is recommended).




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Tally.ERP9 Year End Process                                                 29 March 2010



      4.2 For Non Integrated Accounts (Non Inventory Companies)

      For non integrated accounts or for companies not having inventory in Tally,

      ledgers need to be opened under Stock in Trade.

      E.g. Raw Material Stock, Stock of Finished Goods, etc

      Navigation: Gateway of Tally ->Accounts Info -> Ledger -> Create




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Tally.ERP9 Year End Process                                             29 March 2010




      For Changing or entering the values

      Navigation: Gateway of Tally -> Accounts Info-> Ledger -> Alter



      Select the stock ledger (e.g. Stock of Finished Goods)




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Tally.ERP9 Year End Process                                                    29 March 2010




      Opening Balance    (on 1-Apr 2008):   Set the value of opening stock

      Closing Balance                 :     Enter the date for which we want closing

      stock say 31/03/2009



      Then Enter the amount of Closing Stock e.g .Rs. 200000




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Tally.ERP9 Year End Process                                                 29 March 2010




      For entering the closing stock afterworld also follow the same procedure as

      explained earlier & enter the date after previous closing balance e.g. for

      31/03/2010 Rs. 300000




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Tally.ERP9 Year End Process                                                       29 March 2010




      The Profit & loss after setting the same will be as follows:




      There is also alternate way of changing the closing stock, go to Profit & Loss

      Account, then select Closing Stock.

      After entering closing stock, the screen as appearing for alteration will appear.

      (as explained in previous section)




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Tally.ERP9 Year End Process                                                        29 March 2010


      5 Journals for Transferring the expenses & incomes

      There is no need to make Profit & Loss Account (it is available as default feature

      in Tally)

      In next year, balances will not be appearing as opening balances for expenses or

      incomes (instead they will be transferred to profit & loss accounts).

      Only we need to do is to transfer the profit & loss account balance to the

      appropriate accounts.

      e.g. In case of Non-Company entities transfer the profit & loss account to Capital

      Account(s).

      In case of Companies, transfer the Profit & Loss Account Balance to the General

      Reserves, Retained Earnings, etc as applicable.



      e.g. Dr …… Profit & Loss A/c …………….

           To Capital Account (s)……………………

      (Being Net Profit Transfer to the capital Accounts for the F Y 2008-09)




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Tally.ERP9 Year End Process                                                   29 March 2010



      6 Interest

      Interest Entries will have to be made manually in Tally.ERP9 for the year end

      process. E.g. Interest on Unsecured Loans, Interest to Creditors (for Delayed

      Payments), Interest to Debtors ( for Delayed Payments)



      This can be easily done with one of the powerful feature of Tally.



      We will see the step wise module of Interest

      Step 1 : Activate Interest Features

            F11-> Activate Interest calculation        -> YES

            Use Advanced Parameters            -> YES



      Step 2 : Gateway of Tally -> Accounts Info -> Ledger - > Alter

            Select Ledger Accounts e.g. Party 1 Account

            Set Activate Interest calculation to Set




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Tally.ERP9 Year End Process                                                    29 March 2010




            Set the option as applicable.



      Step 3 : Gateway of Tally -> Accounts Info -> Voucher Type- > Alter ->

            Credit note /Debit Note as applicable

            Enter New Class Name e.g. Int Adj.




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Tally.ERP9 Year End Process                                                       29 March 2010




            Then set the required details




      Step 5 : Gateway of Tally -> Display-> Statement of A/cs- >Interest Calculation->

      Select Interest Receivable/ Payable as applicable




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Tally.ERP9 Year End Process                                                            29 March 2010




      Step 6 : With the help of Above we can pass the entry

      Gateway of Tally -> Account Voucher-> Credit Note (with Int adj Class)

      This will facilitate auto entering the interest data as per the previous calculations



      Alternately, based on the report available, we can pass manual entries.

      (The another simpler method of calculating yearly interest without change in

      interest rate is select the ledger account, then select daily balance (F6) for the

      period & calculate the interest on average balance)




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Tally.ERP9 Year End Process                                                     29 March 2010



      7 Depreciation

      As we know that in most of the cases where depreciation is charged on the basis

             of WDV (not on SLM) as per provisions of Companies Act, we will have to

      provide depreciation on prorate basis (i.e. on the basis of No of days of a

      particular asset).



      There is no Fixed Asset module available in Tally.ERP9 as on today (the

      roadmap contains this module, i.e. it is available in next versions)



      This can be done with the Interest Calculation feature as explained above by

      setting interest rate as negative




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Tally.ERP9 Year End Process                                                     29 March 2010


      8 Foreign Exchange Gain/ Losses

      The companies using Foreign Exchange Feature of Tally.ERP9, can make

      entries for unrealized Foreign Exchange Gain/ Loss (which will be very time-

      consuming job in other cases)

      For calculating exact Foreign Exchange Gain/ Loss, the bill-wise details should

      be strictly maintained as module (Tally.ERP9 calculations) is based on billwise

      details

        I.      Making Class for Foreign Exchange Gain / (loss)

                Navigation: Gateway of Tally->Account info-> Journal

                    Enter Name of the Class e.g. FEGL Adj

                    Mark the field use for Foreign Exchange as Yes

                    Enter the name of Foreign Exchange Loss / Gain Account




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Tally.ERP9 Year End Process                                                        29 March 2010


      For Entering the Unadjusted Foreign Exchange Gain/ Loss entry

          Select Journal Voucher with FEGL Adj Class

          Values will be automatically made on the basis of default calculation




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Tally.ERP9 Year End Process                                                     29 March 2010



      9 Comparative Report /Ratio Analysis/ Percentage, etc

      There are n numbers of comparisons required at the time of closing the books of

      account.

      Tally.ERP9 has the facility to compare the data by columnar method

      We can compare

                     Budgeted vs. actual (with variances)

                     Periodic comparisons (for trend analysis, etc)

                     Intercompany Comparisons



      E.g. If we select Profit & Loss report

      For selecting difference comparisons select Auto Column or New Column




      If we select New Column, then select monthly


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Tally.ERP9 Year End Process                                                      29 March 2010




      We can have customized reports also by selecting new column feature

      This will facilitate to have many analysis e.g. Trend analysis ,etc

      We can also compare the data of one company with other company in Tally.

      Open both the companies

      Go to Profit & Loss Account

      Select New Column & select the other Company (with period specific)




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Tally.ERP9 Year End Process                                                          29 March 2010




      This will facilitate to have comparisons of two companies

      Also we may get the result as percentage of sales by selecting configuration

      (F12)




      Such types of reports are available at most of the default reports of tally.


                                        www.winjit.com (WINJIT)                      Page 24
Tally.ERP9 Year End Process                                                      29 March 2010


      10 Splitting of the company data

      As explained earlier, Tally.ERP9 can maintain n number of year’s data in one

      company. But, sometimes we need to split the company.

      Splitting of company means bifurcating the existing data of one company into two

      companies with some cutoff date.

      Following steps should be followed:


      10.1 Backup

          Take Backup of the existing data in some other locations


      10.2 Splitting the data

          Select the company

          Select the option F3 (Cmp Info)

          Select the option Split Company Data




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Tally.ERP9 Year End Process                                                    29 March 2010


          Select the appropriate date for Split up. i.e. Starting date for new

             company. (e.g. Suppose we want to split data for FY 08-09 & FY 09-10 we

             will have to select 01.04.2009)



      Tally will confirm for Splitting up



      After Splitting up, there will be three companies

      1st – Existing Company (i.e. as it is before Split Up)

      2nd – New Company ( for the period Up to the date of Splitting e.g. up to

      31.03.2009 in our above case)

      3rd – New Company ( For the period after the date of Splitting e.g. From

      01.04.2009 in above example)




                                            www.winjit.com (WINJIT)            Page 26
Tally.ERP9 Year End Process                                                        29 March 2010


      10.3 Managing the Data Folder

      Now we will have to move to the data folder by shutting down all the companies

      from Tally.ERP9.

      Just copy & paste the older company in Old Data Folder (Path as decided by us)

      Copy & paste the Co1 in FY 0809 Folder (Path as decided by us) & keep only the

      Co2 (i.e. Co. for continuation in Current Folder)

      This will facilitate easy access at the time of opening of data from tally



      After Splitting up of the company, both companies’ data are not connected

      internally.

      Therefore, if we are going to change some data in CO1 it will not affect the

      balances of CO2 & we will have to change opening balances in Co2

      manually (if required)




                                        www.winjit.com (WINJIT)                    Page 27
Tally.ERP9 Year End Process                                                            29 March 2010




      11 About Winjit Technologies Pvt. Ltd.

      Winjit is a fast-growing provider of software consultancy, design and

      development services, headquartered in the India. Winjit Technologies has a

      proven track record of successful development and implementation of solutions

      on different technologies for a variety of customers.

      With state-of-the-art delivery centres in India, we have a team of competent

      professionals with expertise in different technologies. Our development centres

      have all the necessary communication links and hardware / software for

      development of commercial applications, web portals and web sites.

      To maximize value for the customer, our development centres follow ISO 900

      certified processes. Our Project Management Methodologies is a blend of finest

      practices tuned to support the engagement models.

      With extensive experience in consulting, training and software development, we

      have successfully completed a number of projects on a wide range of hardware

      and software platforms. Continuing investments in net centric technologies,

      client/server   technologies,   software    development       methodologies,   project

      management systems, quality assurance processes have helped deliver quality

      solutions on time, and more importantly within budgets.

      We have adequate Quality management systems which help the organisation in

      organised processes and delivering value to its customers. So we have basically

      a process-driven architecture for entire project lifecycle.


                                        www.winjit.com (WINJIT)                       Page 28

								
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