TALLY.pptx for Beginners to study about the basics
1. (an accounting software)
A project by “ASHISH SHUKLA “
CLASS: B. COM
SECTION: --------------
ENROLLMENTNO: ----------------
Submitted to “-------------”
ASSISTANT PROFESSOR
2. I take this opportunity to express my profound gratitude and deep regards
to my guide -----------------for her exemplary guidance, monitoring and
constant encouragement throughout the course of this project. The
blessing, help and guidance given by her time to time shall carry me a long
way in the journey of life on which I am about to embark.
Last but not least, my sincere thanks to my parents and friends for their
wholehearted support and encouragement.
I also hereby declare that the project work entitled “TALLY (an accounting
software)” under the guidance of “ ---------------” is my original work and it
has not been submitted earlier in any other university or institution.
NAME-ASHISH SHUKLA
BCOM(HONS)- 3A
3. This is to certify that the project titled “TALLY (an accounting
software)” is an academic work done by Mr . ASHISH SHUKLA
submitted in the partial fulfillment of the requirements for the award
of degree of Bachelor of Commerce (Hons.) at ---------------------------
-------, New Delhi under my guidance and direction.
Mr . ASHISH SHUKLA has given an undertaking that the
information presented in the project has not been submitted earlier.
(Signature of Faculty)
--------------------
ASSISTANT PROFESSOR,
4. INTRODUCTION
Tally. ERP 9 is one of the most widely used financial
software. Tally .ERP 9 reports can help a business owner
make informed decisions to increase efficiency, reduce
costs, and organize business operations.
With Tally .ERP 9, accurate, up-to-date business
information is available at your fingertips anytime. It
provides a Comprehensive solution for the accounting
and inventory needs of a business. It provides the
capability to generate fully accurate tax returns in a
matter of minutes and is also capable of extracting,
interpreting and presenting financial data.
5.
6. 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.
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 combined with enhanced
MIS, Multilingual, Data Synchronization and Remote
capabilities help you simplify all your business processes
easily and cost-effectively.
7. 4.5 : DOS based, Accounts only.
5.4 : Window based accounts with
inventory.
6.3 : 5.4 with online finalization,
auditing and import & export
feature.
7.2 : 6.3 with VAT, TDS and service tax.
8.1 : 7.2 with FBT and excise duty.
9.0 : 8.1 with Payroll system, multi
language and extra formatting
feature.
8. Create company.
Master creation: Ledger and Voucher
creation.
Transaction: Entry of voucher.
REPORTS : Auto created by tally.
IMPORT : Data import from excel to
tally.
9. The Accounting Features consists of
configurations/functionalities, which generally affect
accounting transactions and reports. The Accounting
features section is further divided into six sub-sections,
namely:
General
Outstandings Management
Cost/Profit Centres Management
Invoicing
Budgets and Scenario Management
Banking Features
Other Feature
10. Go to Gateway of Tally > F11: Company Features >
Accounting Features or click F1: Accounting Features
The Accounting Features Screen appears as per Figure below
11.
12. Go to Gateway of Tally > Company Info. > Create
Company .
Creating a New Company
In order to create a new company for accounting
above screen will appear .
The fields in the company creation screen and the
information to be filled in each of them are explained
below. To navigate between the fields, use the
Enter/Tab/Arrow Keys, or Mouse clicks.
Directory: The path to the location of Tally. ERP 9 data is displayed
here. By default, the path provided while installing Tally. ERP 9 will be
displayed. However, you can press backspace and specify the location in
which you want the data to be stored.
Name: Provide a name for the company that is being created. Primary
Mailing details: The mailing name and address details are picked from
here for any report such as balance sheet and statements of accounts.
13. i. Mailing Name: The name provided for the company in the name field is
automatically displayed here. However, you can change it as per requirements.
ii. Fill in the company’s address.
iii. Country: Select the country in which the company is located. This will allow
users to choose the statutory capabilities available for that country. In this
example, the country selected is India.
iv. Fill in the relevant numbers in the Telephone No. and Mobile No. fields.
v. E-Mail: Fill in the company’s official e-mail ID here. This will be used while e-
mailing reports and statements from Tally.ERP 9.
14. It is also known as the principal book of accounts as well as the book of
final entry. It is a book in which all ledger accounts and related
monetary transactions are maintained in a summarized and classified
form. All accounts combined together make a ledger and form a
permanent record of all transactions.
It is the most important book of accounting as it helps in the creation
of trial balance which then acts as a base for the preparation
of financial statements.
Example: An account can be either an Asset, Liability, Capital, Revenue
or an Expense account. Few examples of each are Furniture, Cash,
Creditors, Bank Loan, Capital, Drawings, Sales, Rent, etc.
15. • Means you can create,
display, alter single and
multiple account
groups.
¨ Ledger
• The next option after
group in Account info
menu is Ledger
• In this menu you can
create, display and
alter single and
multiple ledger
accounts.
16. o Name : The first box is the Name of the ledger. Enter the name of the
ledger, for example, Furniture A/c ; Party ledger account (sales)
o Under : Every ledger requires a group to operate in. For example,
Furniture A/c will be under Fixed Assets group and party ledger
account (sales) under Sundry debtors as they are receivables which
the company will realise on future point of time.
[Rule : The rule is very simple we just have to select the group that is
required as per the nature of the ledger.]
o Inventory values are affected : This needs to be set to yes if we have
stock to be maintained.
o Mailing details : Details like Name, Address, Country and Bank
Details for the ledger has to be filed [ Note : It is for the ledgers such
as debtors and creditors which require these kind of details.]
17. o Tax Registration Details : Tax registration details include :
PAN/IT No. : ________
Registration Type : ________
GSTIN/UIN. : ________
Set/Alter GST details : ________
[Note : Similar to mailing details, these details are also of people and not
for ledgers like furniture, building etc.]
o Opening balance : This is the opening balance of the ledger if any.
Any balance of the ledger which is being carried forward from the
previous year will have to be entered as the opening balance.
18.
19. Accounting is the process of recording financial transactions
pertaining to a business. The accounting process includes
summarizing, analyzing, and reporting these transactions to
oversight agencies, regulators, and tax collection entities. The
financial statements used in accounting are a concise
summary of financial transactions over an accounting period,
summarizing a company's operations, financial position,
and cash flow .
Regardless of the size of a business, accounting is a necessary
function for decision making, cost planning, and measurement
of economic performance measurement.
20. Tally is an very important software in terms of monetary
applications and accounting systems. Tally is a important tool in
calculating monetary terms, accountancy, tax and GST calculating,
managing commercial transactions effectively and efficiently. Tally
helps you to manage all your data in a proper way and can be
efficiently accessed whenever needed. It allows you to
all your data in well-mannered way.
Tally can be easily used in manipulating any kind of business
transactions, whether it is monetary or inventory. Taxes, GST and
other accounts related calculation and planning can be easily
calculated by tally well effectively and in a efficient manner. Tally
makes work much easier with variety of options
to improvise things. One can easily manage entire data in
elaborative and efficient manner.
21. It can be more precisely explained on the basis of following points:
You can get whatever you want: Tally is used in POS Software especially
designed to meet daily financial transactions and it’s calculations. With the help
of tally you can drill out each and every solution of your problem to it’s
depth and up to the satisfaction.
Multipurpose uses: Tally can be used in many tasks it is applicable in all fields
regarding inventory and monetary. It can be used as payroll, can be used for
taking attendance, record of the employees , work group, workers categories, pay
heads and of course employees records.
Powerful tool for Accounting and Finance: Tally can be used for various
purpose and it can be used in any field regarding Accounting and software. Tally
is powerful tool and can be used in financial analysis and
Accounting management.
Banking: Tally is equally being considered important in banking solutions also.
With the help of tally one can easily create deposit slip, print cheques, maintain
cheque register and many more things. Overall Tally has made work quite easier
and comfortable and it is very easy to use. However the most tedious task in any
organisation is to create bank reconcilement. Tally can help you out of these ,
with the help of tally you can create bank reconciliation statement easily and
with ease and it is quite comfortable to use.
22. There are total 2 major ways to create a ledger in
Tally.
One way is to create a Single Ledger and another
way is
to create it with Multiple Ledgers.
To create ledger from voucher screen by pressing
ALT + C.
Step 1 : From Gateway of Tally, go to Accounts Info.
Step 2 : Go to Ledger
Step 3 : Under single ledger, Select the option Create
Step 4 : Fill the particulars in the Ledger Creation
Screen displayed :
23. The process is almost same as single ledger method. Only one step is
different.
Step 1 : From Gateway of Tally, go to Accounts Info.
Step 2 : Go to Ledger
Step 3 : Under Multiple ledger, Select the option Create
Step 4 : Fill the particulars in the Ledger Creation Screen :
o Under Group : This option is similar to the Under option under
Single Ledger Method. For example, Furniture A/c, Electrical and
Fittings will be under Fixed Assets group, Investment in shares,
Investment in Fixed deposit account under Investment group
etc., This works well if we create ledgers under only one group.
This type of ledger creation is also not useful for creating Sundry
debtors ledger and sundry creditors ledger as we have to also fill
up GST details of individual creditors and debtors while creating
ledger account for them.
24. A trial balance is a list of all the general ledger accounts (both revenue
and capital) contained in the ledger of a business. This list will contain the
name of each nominal ledger account and the value of that nominal
ledger balance. Each nominal ledger account will hold either a debit
balance or a credit balance. The debit balance values will be listed in
the debit column of the trial balance and the credit value balance will be
listed in the credit column. The trading profit and loss statement
and balance sheet and other financial reports can then be produced
using the ledger accounts listed on the same balance .
A trial balance is a book keeping worksheet in which the balance of
all ledger are compiled into debit and credit account column totals that
are equal. A company prepares a trial balance periodically, usually at the
end of every reporting period. The general purpose of producing a trial
balance is to ensure the entries in a company's bookkeeping system are
mathematically correct.
25. *Trial balance summarizes all the financial transactions of the
business.
* Trial balance provides a check on the arithmetical accuracy of
recordings of all the financial transactions of the business.
* Trial balance helps in locating errors by providing a starting
point for the location of errors committed if any.
* Trial balance provides a basis for the preparation of final
accounts.
* It presents to the businessman a consolidated list of all ledger
balances.
* It is the shortest method of verifying the arithmetical
accuracy of entries made in the ledger.
26. A journal entry is used to record a business transaction in
the accounting records of a business. A journal entry can be
recorded in the general ledger, but sometimes in
a subsidiary ledger that is then summarized and rolled
forward into the general ledger. The general ledger is then
used to create financial statements for the business.
The logic behind a journal entry is to record every business
transaction in at least two places (known as double entry
accounting). For example, when you generate a sale for
cash, this increases both the revenue account and the cash
account. Or, if you buy goods on account, this increases
both the accounts payable account and
the inventory account.
27. A voucher is a document that contains details of a financial transaction and
is required for recording the same into the books of accounts. For every
transaction, you can use the appropriate Tally voucher to enter the details
into the ledgers and update the financial position of the company.
28. By default in Tally. ERP 9, there are 18 different pre-defined Voucher
types (where Payroll feature is enabled, the number of pre-defined voucher
types will be 20). Voucher type pertains to Accounting, Inventory and
Payroll. These are used for recording various transactions according to the
user needs.
Tally.ERP is Pre-programmed with a variety of accounting vouchers, each
designed to perform a specific job. The standard vouchers are :
Contra Voucher
Payment Voucher
Receipt Voucher
Journal Voucher
Sales Invoice
29. All entries which you made in these given accounting vouchers is
effect on your current accounting of your business.
F4: Contra-> Used for cash and bank entries and also fund transfer
from one bank to another.
F5: Payment ->Used for expenditure and payment to parties by
cheque or cash.
F6: Receipt -> Used for income and received amount from the parties
by cheque and cash.
F7: Journal -> Used for adjustable and transferable entries.
F8: Sales -> Used for sales entries and income
F9: Purchases ->Used for purchased entry and expenses.
Ctrl+F8: Credit Note -> Used for sales return entries.
Ctrl+F9: Debit Note-> Used for purchases return entries.
F10: Reverse Journal: Used for rectifying any wrong entries. (Non
Accounting Voucher)
Ctrl+F10: Memo (Memorandum): Used for memorize any entry in
tally. ( Non-Accounting Voucher)
30. These vouchers are effect on inventory reports in the business. All entries
which you made in these inventory vouchers are effect on your stock
register.
ALT+F4: Purchases Order Voucher: Used to give purchases order to party.
ALT+F5: Sales Order Voucher: Used to received sales order from customer.
ALT+F9: Receipt Note Voucher: Used for recording goods received.
ALT+F8: Delivery Note: Used for recording goods delivered to a customer.
ALT+F6: Rejections Out: Used for records goods that are rejected and
returned to a supplier.
CTRL+F6: Rejections In: Used to record goods that are rejected and
returned back by the customer.
ALT+F7: Stock Journal Voucher: Used to record stock transfers from one
location to another
Alt+F10: Physical Stock: Used for recording actual stock physically verified
or counted.
31. Tally ERP 9 is the one of the best accounting software for all types of business
ever. The accounting software is developed numerous shortcut keys to make the
software user friendly and for fast data entry. In tally ERP 9 there are four types of
shortcut keys they are.
Hot keys for easy menu navigation
These are the most useful shortcut keys for menu navigation. Hot keys are single
alphabetic keys to access menu in tally. For example, to view a ledger account.
from the gate way of tally Press D then A then L. You can do it quickly; the beauty
is you don’t need to select menu instead just hit hot keys. You will be navigated to
the desired menu option.
How to find out Hot keys yourself?
You can find out the hot keys of each menu without any difficulty. Let’s take the
above example ledger report.
Go to gateway of tally menu navigate to Display, you will find the D in Display is
changed to red colour. This the hot key for Display menu.
34. Single Keysshortcuts:
Single keys shortcuts are the single Function keys used operate the various
functions of tally ERP 9. For example
F1 to select company
F2 To Change Date
F3 To access company info menu.
MultipleKey Combination Shortcut Keys:
Multiple key combination shortcuts are the shortcut keys which are the
combination of more than one keys.
Like Ctrl, Alt, Shift, Alphabets, Numbers etc. For example
Alt+2 To duplicate a voucher.
Ctrl+R To repeat the narration in the same voucher type.
Ctrl+Alt+R To rewrite the company.
You have to use all these keys together to get this shortcut keys activated.
35. SHORTCUT KEYS USAGE WHERE TO USE THIS KEY
Common across screens
F2 To change the date. In most screens in Tally.ERP 9.
Alt+F2 To change the period of a report. In most screens in Tally.ERP 9.
F3 To select a company from the list of loaded
companies.
In most screens in Tally.ERP 9.
F11 To open? Company Features? Menu or
screen.
In most screens in Tally.ERP 9.
F12 To open? Configuration screen. In most screens in Tally.ERP 9.
Alt+P To print the current screen In most screens in Tally.ERP 9.
Alt+E To export the details of the current screen in
ASCII, Excel, HTML OR XML format
In most screens in Tally.ERP 9.
Alt+M To send the details of a report in an e-mail. In most screens in Tally.ERP 9.
36. Alt+N To view the report in automatic columns. At all the reports where columns can be
added.
Alt+O To upload the report to your Website. In most screens in Tally.ERP 9.
Ctrl+S To open Tally Shop. In all screen of Tally.ERP 9.
Alt+G To change the display language of the UI. In most screens in Tally.ERP 9.
Alt+K To change the input language of the UI. In most screens in Tally.ERP 9.
Ctrl+K To login to Control Centre. In most screens in Tally.ERP 9.
Ctrl+H To open the Support Centre. In most screens in Tally.ERP 9.
Alt+H To access the context-sensitive help. In all screen of Tally.ERP 9.
Ctrl+Q To exit a screen without saving. In most screens in Tally.ERP 9.
Ctrl+A To accept the screen and save the information. In most screens in Tally.ERP 9.
Alt+D To Delete.
Ctrl+Alt+B To check the Company Statutory details. At all menu screens.
ALT+Enter To view the Voucher display At Day Book and almost all Voucher Reports
Ctrl+Alt+I To import statutory masters At all menu screens.
Gateway of Tally
F1 To select and load a company.
Alt+F1 To close the current company that is open.
Alt+F3 To go to the. Company Info? Screen.
F4 To connect the company to Tally.NET server.
Alt+F4 To disconnect a company from Tally.NET
server.
37. Alt+O To synchronise company data.
Alt+Y To synchronise company data only for the selected client and server
rules
Ctrl+Alt+T To view the. Products and Features? Screen.
Ctrl+Alt+L To view the. License and Services? screen.
Ctrl+Alt+F To view the. Configuration Information? screen.
Ctrl+Alt+R Rewrite data for a Company.
Ctrl+N To open the. Calculator? pane.
Ctrl+Q To close Tally.ERP 9 application.
Accounting and Payroll
Master
Creation/Alteration
screen
Crtl+G To go to Group Creation/Alteration screen.
Ctrl+L To go to Ledger Creation/Alteration screen.
Ctrl+C To go to Cost Centre Creation/Alteration screen.
Ctrl+O To go to Employee Group Creation/Alteration screen.
Ctrl+E To go to Pay Head Creation/Alteration screen.
Ctrl+P To go to Employee Creation/Alteration screen.
Ctrl+T To go to Attendance Type Creation/Alteration screen.
38. Ctrl+U To go to Unit of Measure Creation/Alteration
screen.
Ctrl+B To go to Budget Creation/Alteration screen.
Ctrl+V To go to Voucher Type Creation/Alteration
screen.
F10 Is a toggle button used to edit or skip the
sorting order of a master?
Only appears in the alteration screens for
masters.
Inventory Master
Creation/Alteration screen
Crtl+G To go to Stock Group Creation/Alteration
screen.
Ctrl+C To go to Stock Category Creation/Alteration
screen.
Ctrl+I To go to Stock Item Creation/Alteration screen.
Ctrl+O To go to Godown Creation/Alteration screen.
Ctrl+V To go to Voucher Type Creation/Alteration
screen.
Accounting Voucher
Creation/Alteration screen
Alt+F1 To go to Inventory Voucher Creation/Alteration
screen.
Common across Accounting, Inventory, Order,
and Payroll vouchers.
Ctrl+F2 To go to Order Voucher Creation/Alteration
screen.
Common across Accounting, Inventory, Order,
and Payroll vouchers.
Ctrl+F1 To go to Payroll Voucher Creation/Alteration
screen.
Common across Accounting, Inventory, Order,
and Payroll vouchers.
F4 To open Contra voucher.
F5 To open Payment voucher.
39. F6 To open Receipt voucher.
F7 To open Journal voucher.
F8 To open Sales voucher.
Ctrl+F8 To open Credit Note.
F9 To open Purchase voucher.
Ctrl+F9 To open Debit Note.
F10 To open Reversing Journal voucher.
Ctrl+F10 To open Memo.
Alt+2 To Duplicate a voucher At List of Vouchers? creates a voucher similar
to the one where you positioned the cursor
and used this key combination
Alt+C 1.? To create a master at a voucher screen (if
it has not been already assigned a different
function, as in reports like Balance Sheet,
where it adds a new column to the report).
1.? At voucher entry and alteration screens, at
a field where you have to select a master from
a list. If the necessary account has not been
created already, use this key combination to
create the master without quitting from the
voucher screen.
2.? To access Auto Value Calculator in the
amount field during voucher entry.
2.? At all voucher entry screens in the Amount
field.
Alt+R To repeat the narration in different voucher
type.
At all Vouchers in TALLY.ERP 9.
Alt+S 1.? To open Stat Payment screen. 1.? In Payment Voucher screen.
2.? To open Stat Adjustment screen. 2.? In Journal Voucher screen.
3.? To open Stock Query report. 3.? In Sales and Purchase Voucher screen.
Alt+A To open the Tax Analysis screen. In Sales, Credit Note, Debit Note, and
Purchase vouchers.
Alt+I Is a toggle button used to change the voucher
to Item Invoice or Accounting Invoice?
In Sales, Credit Note, Debit Note, and
Purchase vouchers.
40. Ctrl+V Is a toggle button used to change the
voucher to Invoice mode or voucher
mode?
Is a toggle button used to change the
voucher to Item Invoice or Accounting
Invoice?
Ctrl+T To record a post-dated voucher. Common across Accounting, Inventory,
Order, and Payroll vouchers.
Ctrl+L To make the voucher optional. Common across Accounting, Inventory,
Order, and Payroll vouchers.
Inventory Voucher
Creation/Alteration screen
F1 To go to Accounting Voucher
Creation/Alteration screen.
Common across Accounting, Inventory,
Order, and Payroll vouchers.
Crtl+F6 To open Rejections In voucher.
Alt+F6 To open Rejections Out voucher.
Ctrl+F7 To open Indent.
Alt+F7 To open Stock Journal.
Alt+F8 To open Delivery Note.
Alt+F9 To open Receipt Note.
Alt+F10 To open Physical Stock.
Ctrl+J To open Material Out voucher.
Ctrl+W To open Material In voucher.
Alt+S To open Stock Query.
Ctrl+E Is a toggle button used to change the
voucher to an Excise voucher or a non-
excise voucher?
In Delivery Note, Receipt Note, Material
In, and Material Out screens.
41. Balance Sheet in Tally.ERP 9
The Balance Sheet gives a complete glance of the financial position of a business. The
Balance Sheet in Tally.ERP 9 shows the assets and liabilities of a company. From the
Gateway of Tally screen, a business owner can access the Balance Sheet. The Balance
Sheet can be configured using F12 configuration in Tally.ERP 9. Tally.ERP 9 also offers
Schedule VI Balance Sheet for businesses. The Balance Sheet can be viewed for any
given dates. Multiple valuation types are given for defining stock valuations such as
FIFO, LIFO, Average Cost, Average Price and many more.
Profit & Loss Account in Tally.ERP 9
The Profit & Loss report in Tally.ERP 9 shows a company’s net profit or loss in a given
period. By default, this Tally report considers the period starting from the date when
the books begin to the entry date of the last voucher. The Profit & Loss report in
Tally.ERP 9 can be configured with F12 configuration available within the report. A
business owner can see Schedule VI Profit & Loss account or P&L statement in vertical
format based on the requirements.
42. Cash Flow/Fund Flow Report in Tally.ERP 9
The Cash Flow report in Tally.ERP 9 has been provided to help get a view of
cash inflow and outflow during an accounting period. This report makes it
easy for business owners to understand the cash flow situation for a specific
period and helps make decisions.
Similarly, the Fund Flow report in Tally.ERP 9 provides details on the sources
of funds and their net flow status on a monthly basis.
Ratio Analysis Report in Tally.ERP 9
The Ratio Analysis report is a powerful report for financial analysis in Tally.ERP
9. The multiple ratios in the report give a clear understanding of the financial
position of a business. These are Debt Equity Ratio, Quick Ratio, Return on
Working Capital, Return on Investment and so on. This is one of the key Tally
reports.
Outstanding Report in Tally
A business owner can see receivables ledger-wise and bill-wise in Tally.ERP 9.
He can see ageing analysis which can be applied based on due dates or as per
the bill dates. Based on the time that has passed (ageing), a business can
accordingly connect with parties or manage funds to make payments. With
the billwise ageing details, the user can see and understand the details of bills
for which payment is pending.
43. InventoryReports inTally.ERP 9
Stock Summary Report in Tally.ERP 9
The Stock Summary report displays the current position of stocks or stock in hand
for a particular date. From this Tally report a business owner can view item-wise
rates, quantity and value of stocks available. The Stock Summary report in
Tally.ERP 9 also enables business owners to view gross profit at each item level
based on landing cost and sales price. It also shows the status of stocks available
across various godowns. The user can see the net stock position by considering
purchase and sales orders which are yet to be processed.
Stock Ageing Analysis Report in Tally.ERP 9
This report in Tally.ERP 9 helps businesses understand their slow-moving goods
versus fast moving goods. This Tally report helps business owners to take decisions
based on procurement of stocks, or whether to liquidate stocks based on their
age. Tally.ERP 9 gives the flexibility to define various periods like 0-30 days, 31-60
days and so on based on business requirement. Business owners can see stock
valuations as well from within this report.
44. Statutory Reports in Tally.ERP 9
GST Reports in Tally.ERP 9
In GST, Tally.ERP 9 provides GSTR-1, GSTR-2, GSTR-3B and e-Way Bill related reports. The GSTR-1
report in Tally.ERP 9 is designed exactly as the form GSTR-1 to make life easy for users.
Business owners can see -
Details of transactions participating in GSTR-1
Transactions not relevant for returns
Transactions not participating because of incomplete information or mismatches
Serial number-wise details of values as mentioned in GSTR-1
A user can navigate from any value up to the actual transaction itself. Users can correct
transactions under Incomplete/mismatch in Information section and allow these transactions to
participate in GST returns. This way, Tally ensures that a user files the most accurate GST return.
Similar experience is given for GSTR-2 and GSTR-3B.
E-Way Bill Reports in Tally.ERP 9
Tally.ERP 9 gives comprehensive e-Way Bill reports to make life simpler for users. A user
can view -
o Transactions which have been exported for e-Way Bills
o Transactions which are yet to be exported for e-Way Bills
o e-Way Bill details of all the transactions for which e-Way Bills have already been
generated.
Apart from all of the above-mentioned Tally reports, there are many more reports in
Tally.ERP 9 all of which help businesses to access their financial analysis in the easiest
manner and take quick business decisions.
45. The purpose and importance of ratio analysis are to evaluate or analyse the financial
performance of the firm in terms of Risk, Profitability, Solvency, and Efficiency. It
helps us to compare the trends of two or more company over a period of time.
1 – Analysis of Financial Statements: Interpretation of the financial statements and
data is essential for all internal and external stakeholders of the firm. With the help
of ratio analysis, we interpret the numbers from the balance sheet and income
statements. Every stakeholder has different interests when it comes to the result
from the financial like the equity investors are more interested in the growth of the
dividend payments and the earnings power of the organization in the long run.
Creditors would like to ensure that they get their repayments on their dues on time.
2 – Helps in Understanding the Profitability of the Company: Profitability ratios help
to determine how profitable a firm is. Return on Assets and Return on Equity helps
to understand the ability of the firm to generate earnings. Return on assets is the
total net income divided by total assets. It means how many does a company earn a
profit for every dollar of its assets. Return on equity is net income by shareholders
equity. This ratio basically tells us how well a company uses its investors’ money.
Ratios like the Gross profit and Net profit margin. Margins help to analyse the firm’s
ability to translate sales to profit.
46. 3 – Analysis of Operational Efficiency of the Firm: Certain ratios help us to
analyse the degree of efficiency of the firms. Ratios like account receivables
turnover, fixed asset turnover, and inventory turnover ratio. These ratios can be
compared with the other peers of the same industry and will help to analyse
which firms are better managed as compared to the others. It measures a
company’s capability to generate income by using the assets. It looks at various
aspects of the firm like the time it generally takes to collect cash from debtors or
the time period for the firm to convert the inventory to cash. This is why efficiency
ratios are very important, as an improvement will lead to a growth in profitability.
4 – Liquidity of the Firms: Liquidity determines whether the company can pay its
short-term obligations or not. By short-term obligations, we mean the short-term
debts which can be paid off within 12 months or within the operating cycle. For
example the salaries due, sundry creditors, tax payable, outstanding expenses
etc. Current ratio, quick ratio is used to measure the liquidity of the firms
5 – Helps in Identifying the Business Risks of the Firm: One of the most important
reasons to use ratio analysis is that it helps in understanding the business risk of
the firm. Calculating the leverages (Financial Leverage and Operating Leverages)
helps the firm understand the business risk i.e. how sensitive the profitability of
the company is with respect to its fixed cost deployment as well as debt
outstanding.
47. 6 – Helps in Identifying the Financial Risks of the Company: Another importance
of ratio analysis is that it helps in identifying the Financial Risks. Ratios
like Leverage ratio, interest coverage ratio, DSCR ratio etc helps the firm
understand how it is dependent on external capital and whether they are capable
of repaying the debt using their own capital.
7 – For Planning and Future Forecasting of the Firm: Analysts and managers can
find a trend and use the trend for future forecasting and can also be used for
important decision making by external stakeholders like the investors. They can
analyse whether they should invest in a project or not.
8 -To compare the performance of the firms: The main use of ratio analysis is that
the strengths and weakness of each firm can be compared. The ratios can be also
compared to the firm’s previous ratio and will help to analyse whether progress
has been made by the company.
48. Business entity concept: A business and its owner should be treated separately as far as their
financial transactions are concerned.
Money measurement concept: Only business transactions that can be expressed in terms of
money are recorded in accounting, though records of other types of transactions may be kept
separately.
Dual aspect concept: For every credit, a corresponding debit is made. The recording of a
transaction is complete only with this dual aspect.
Going concern concept: In accounting, a business is expected to continue for a fairly long
time and carry out its commitments and obligations. This assumes that the business will not
be forced to stop functioning and liquidate its assets at “fire-sale” prices.
Cost concept: The fixed assets of a business are recorded on the basis of their original cost in
the first year of accounting. Subsequently, these assets are recorded minus depreciation. No
rise or fall in market price is taken into account. The concept applies only to fixed assets.
Accounting year concept: Each business chooses a specific time period to complete a cycle of
the accounting process—for example, monthly, quarterly, or annually—as per a fiscal or a
calendar year.
Matching concept: This principle dictates that for every entry of revenue recorded in a given
accounting period, an equal expense entry has to be recorded for correctly calculating profit
or loss in a given period.
Realisation concept: According to this concept, profit is recognised only when it is earned. An
advance or fee paid is not considered a profit until the goods or services have been delivered
to the buyer.
49. There are four main conventions in practice in accounting: conservatism;
consistency; full disclosure; and materiality.
Conservatism is the convention by which, when two values of a
transaction are available, the lower-value transaction is recorded. By this
convention, profit should never be overestimated, and there should
always be a provision for losses.
Consistency prescribes the use of the same accounting principles from
one period of an accounting cycle to the next, so that the same
standards are applied to calculate profit and loss.
Materiality means that all material facts should be recorded in
accounting. Accountants should record important data and leave out
insignificant information.
Full disclosure entails the revelation of all information, both favourable
and detrimental to a business enterprise, and which are of material
value to creditors and debtors.
50. USE OF TALLY:
In the present world, organizations have been moving toward easier and simpler
ways. When Tally has been providing effective solutions for their accounting
queries, organizations feel it more comfortable and efficient technique. Many
inculcated reasons and uses of Tally provided path to clear up accounting and
management rush ups.
Ease to accounting: It is the most popular and most used features of Tally.
Organizations use the accounting feature of Tally in 6 different ways including
credit, debit, contra, reverse journal, payments, receipt, sales, purchase and
memos.
Ease to banking: Banking is a new feature added up in the latest Tally versions
including ERP 9. With the help of banking function, the user can create deposit
slips, print cheque, maintain cheque register, and get payment advice too. It also
gives a solution for the user regarding the tedious job like bank reconciliation. It
has been majorly used to reconcile the bank statements with the bank account
books.
Ease to Ratio analysis: Ratio analysis helps in the ratio calculation that displays
the ratio of different clients. It helps the user to analyse the profit of particular
business and decide the further moves. Among the displayed ratios, the features
like quick ratio, debt/inquiry ratio, inventory turnover and current ratio are the
important ones. Using ratio analysis helps the user to take swift and accurate
decisions.
51. Ease to Inventory: If the organization has been indulged in manufacturing, a well-
maintained inventory helps in reducing the loss and wastage. Simply, the user can go
one-step further in classifying the inventories with respect to groups, units, tariff,
stock items and go-downs.
Ease to Taxation and billing: Tally software has not only involved in calculating the
amount of taxes, but it also helps in including the taxes handling VAT, income tax,
excise tax, customs and service tax.
WHAT ARE FINANCIAL STATEMENTS?
Financial statements are written records that convey the business activities and the
financial performance of a company. Financial statements are often audited by
government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing,
or investing purposes. Financial statements include:
Balance sheet
Income statement
Cash flow statement.
52. IMPORT/ EXPORTOF DATA IN TALLY ERP 9:
Import
The main purpose of Import is to read and make use of the data produced by same
application or another application.
Tally.ERP 9 has the ability to import data that is in xml/sdf format. The data can be
produced by another Tally.ERP 9 or by another application. The xml that is used for
importing should be as per the Tally.ERP 9 schema if the same has to get imported to
Tally.ERP 9.
Export
Data is exported from a software so that it can be used by another application for data
sharing. Export also helps in representing the data in various formats as per the user’s
requirement.
In Tally.ERP 9 the data can be exported to SEVEN formats [ASCII (Comma
delimited), Excel (Spreadsheet), HTML (webpublishing), JPEG (Image), PDF (Portable
Document Format), XML (data interchange) SDF (using SDF Utility)].
The procedure to Export or Import the data in Tally.ERP 9 is as
follows:
Step 1. Ensure that the F11: Features of both the companies are same. If not make the
required changes to have similar F11: Features in both companies.
Step 2. Load the company whose data you would like to export and follow the steps
given below to export the data.
53. Procedure to Export the data:
• Go to Gateway of Tally > Display > List of Accounts
• Click E: Export or press Alt +E
• The Exporting List of Ledgers screen is displayed.
• Select Default (All Languages) in the Language field
• Select XML (Data Interchange) in the Format field
• Enter the path of the location where the files are to be exported in the Export
Location field.
• The Output File Name field is pre-filled with the name master with file
extension based on the option selected in Format field. You can change the
name, if required.
• Select the option All Masters in the Type of master’s field.
• Accept to export the data in selected format.
• Similarly export the company’s Vouchers from Display > Day Book
• Shut the Company after exporting the master’s and Vouchers.
Step 3. Load the company where masters have to be imported.
54. Procedure to Import the data:
• Go to Gateway of Tally > Import of Data > Masters
• In Import of master’s screen, enter the required filename in Import File
Name (XML) field.
• Select the required Behaviour in Treatment of entries already
existing field.
• Combine Opening Balance – Select this option to combine the opening
balances both existing and new balances.
• Ignore Duplicates – Ignore all duplicate entries.
• Modify with New Data – Does not combine opening balances but
modifies the existing data.
• On successfully importing the Masters, you can proceed to import
the vouchers by following the steps shown above.
55. Tally is the most popular and Highly Effective accounting
tool which make the life of an accountant easier. Anyone
who is looking to enter in the field of accounting or wishes to
lead a successful career in accounting must learn Tally.ERP 9
as the benefits of using Tally.ERP 9 are more for both small
and medium sized businesses. Moreover, the simplicity is the
driving force which allures the users of financial information
to actively use Tally as the ERP solution for their businesses.
