The document explains the automatic rounding feature in Tally ERP 9, which enhances the efficiency of sales and purchase transactions by adjusting amounts to their nearest rupee values. It discusses how to set up round off ledgers and voucher classes, as well as different rounding methods that can be applied, including upward, downward, and normal rounding. Additionally, it emphasizes the treatment of round off amounts as either an income or an expense in accounting and provides a procedural guide for implementing this in Tally ERP 9.

1. the ROUND OFF feature
of
Tally ERP 9

2. Automatic Rounding is a very useful feature in Tally ERP 9, helps to
speed up Sales and Purchase transactions.
Apart from these two vouchers Auto Rounding can be used in voucher
types like Credit note, Debit note, Delivery note, Receipt note etc.

3. How/When to use Round off ?

4. Rounding off is the adjusting of smaller fractions of amount (Eg:
paisa) to it’s nearest bigger value (Rupees). The Rounding could be
➢
Upward Rounding
➢
Downward Rounding
➢
Normal Rounding

5. Example
➢
Rs 10.55 rounded off to Rs 11 (upward rounding)
➢
Rs 10.55 rounded off to Rs 10 (downward rounding)

6. In accounting we can treat Rounding either as an income or an
expense. If Round off ledger shows a debit balance it is an expense to the
business, if it shows a credit balance it can be treated as income. Finally
used in profit and loss account for profit calculation at the end of the
financial year.
Hence create a Round off ledger under indirect income or indirect
expense, the normal procedure of treatment of Round off in Tally ERP 9.

7. Automatic Round off in sales voucher
At first we should create a ledger namely Round off under indirect
expense or indirect income.

9. Creating Voucher class
The second step is to create a voucher class; Voucher class has several
uses in Tally accounting.
To create voucher class
Go to
➢
Gateway of Tally >> Accounts info >> Voucher Types >> Alter

11. Select Sales voucher and press Enter, in the voucher type alteration
screen, continue to press enter until you reach “Name of class”
Type a voucher class name there; Let’s type name “Retail”

13. Under Additional accounting entries
Ledger Name: Round off (select the ledger we have created at the
beginning)
Type of calculation: Select “As total amount rounding”.
There are several rounding calculations available like As Flat rate, as
additional exercise, as surcharge, as user defined value, based on
quantity, on current subtotal, on item rate, on Total sales etc.

14. Press Enter, you will get a new screen, called “class screen”
In the class screen press enter and under
Default accounting allocations for each item invoice
Ledger name: select any sales ledger here Sale
Percentage: 100%

16. Rounding method: Three rounding method available, Normal, Downward
and upward. Let’s select “Normal rounding”
rounding
Rounding Limit: You can set a limit for rounding, the maximum limit to
which an amount is to be rounded. This may be up to Rs 1, Rs 10, or
Rs 50 Etc. The setting depends on the decision of management. Set the
limit Rs 1 here.
Remove if zero: Yes
The final screen will look like

18. Press Enter and save the screen; save the voucher type alteration
screen also.
Now enter a sales transaction
Crocodile T shirt XL sold for Rs 699.99
Go to
Gateway of Tally >> Accounting Vouchers >> Sales
Press F8 or click on sales button to have the sales voucher screen.
Tally ERP 9 will ask to select the voucher class to be used for the entry
with voucher class list. See image below

20. Select newly created voucher class “Retail”
You can see a round off ledger already existing in sales voucher, see the
image.

22. Put the entry of the transaction Crocodile T shirt XL sold for Rs 699.99
Immediately after entering Quantity and Rate, the Round off amount will
be calculated automatically, according to the method chose.
See the below image