Asst Prof Shivakumar.

R(Phd) JVIMS&C e-Business & Comp Accounting

UNIT-4
CONFIGURING TALLY
SYLLABUS:
General Configuration, Numerical Number, Accounting /Inventory Info - Master Configuration -
Voucher Entry Configuration. Working In Tally: Groups, Ledgers, Writing Voucher, Different Types of
Voucher and Voucher Entry Problems on Voucher Entry – Trail Balance. Accounts Books, Cash Books,
Bank Books, Ledger Accounting, Group Summary, Sales Registers and Purchase Registers, Journal
Registers, Statement of Accounts and Balance Sheet.

F12: Configuration in Tally.ERP 9

Configuration can be selected or modified by using F12: Configure button. This button is available in
almost all the screens of Tally.ERP 9 enabling the user to modify it as and when your requirements
change.

F12: Configure is application Level configuration and saved in a file known as tallycfg.tsf.

Note: As configuration is application level, it is not possible to set the company

level configuration as F11: Features.

Go to Gateway of Tally > F12: Configure

The F12: Configure menu is displayed as shown.

The menu consists of the following options.

Configuration of Tally:

[Type text] Page 1

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Configuration or F12 is used to configure setting for various applications available in tally.
Configuration setting affects all the companies maintained in the same data directory so, one can
configure tally before start working on the company by pressing F12: Configure button.

Master configuration:

Master configuration is used to set the details that should displays in accounting masters. This is
available in the Accounting and Inventory Master screens through the F12: configure button and can
be modified as per requirement.

To set F12: Configure for Accounts and Inventory Masters

Go to Gateway of Tally > F12: Configure > Accts/ Inv Info.

By default, Accounts/Inventory Masters settings are set to No.

Features that you require can be set to Yes. Typically, they are additional fields that appear during
Masters Creation which enable you to obtain more information and detailed analysis.

Master Configuration

Allow Aliases along with Names

Set this option to Yes to enter the Alias names in the Master.

Allow Language Aliases along with Names

Set this option to Yes to enter the Alias names in any of the Indic Languages in the Master

Accounts Masters

Allow Advanced Entries in Masters

Set this option to Yes, to enter some of the advanced information in the Ledger and Group Master.
This information will be reflected in the reports.

[Type text] Page 2

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Use Addresses for Ledger Accounts

Set this option to Yes to enter the Mailing Details in the ledger master. It is useful for
a Customer ledger, a Party ledgers or Bank Accounts. Mailing Details like Name, Address,State,
PIN Code and PAN / IT No. is entered in this section.

These details will appear in the printed reports.

Use Contact Details for Ledger Accounts

Set this option to Yes to specify the details of Contact person (if any) in the ledger creation screen.

You can specify the details like the Name of the Contact Person, Telephone Number, Fax
Number and the E-Mail Id.

Add Notes to Ledger Accounts

Set this option to Yes and a new field to enter Notes appears in the Ledger master. This field allows
you to enter any additional information about the ledger.

Note: The Contact Details for the ledgers appear only if Use Addresses for Ledger
Accounts is set to Yes.

Inventory Masters

Allow advanced entries in Masters

Set this option to Yes to specify the behavior of the Stock Item, in the Stock Item Master. For further
details, please refer the section Stock Items.

Use Part Numbers for Stock Items

Set this option to Yes, to enter the Part Numbers of the Stock Item.
Use Description for Stock Items
Set this option to Yes to enter any Description of the Stock Item in the Stock Item Master.

Use Remarks for Stock Items

Set this option to Yes to enter your remarks or comments about the stock Item.

Use Alternate Units for Stock Items

Set this option to Yes to define an Alternate Unit for the Stock Item.

Allow Std. Rates for Stock Items

Set this option to Yes, to specify the Standard Purchase Cost and Standard Sales Price of the Stock
Item.

Specify Default Ledger Allocation for Invoicing

Set this option to Yes, to Set or Modify Default Ledgers for Invoicing for the Stock Item.

This allows you to allocate default Sales/Purchase Ledgers which will be credited when a Stock Item is
invoiced.
[Type text] Page 3
Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Allow Component list details (Bill of Materials)
Set this option to Yes, to define the Components (BOM) for the Stock Item. For further details, refer to
the section Bill of Material.

Use Addresses for Godowns

Set this option to Yes, to enter the godown address in the Godown Master.

F12: General Configuration in Tally.ERP 9

You can configure Country Details, Style of Names, Style of Dates, and Configuration of Numbers in the
General configuration screen.
Go to Gateway of Tally > F12: Configuration Menu > General

General Configuration Setting options:

Country Details
Use Accounting Terminology of:
This option displays the List of Countries.

For setting the accounting terminology, select India/SAARC or International from the List of
countries.

Style of Names
Default appearance of Names in Reports:
This option displays the List of Name Styles for Ledgers.

[Type text] Page 4

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
By default, the name style of a Ledger is Name Only. You can change the name style by selecting from
the List.
Default appearance of Stock item Names in Reports:
This option displays Name style for stock items.

By default, the stock item name style is Name Only. You can change name style by selecting from the
List.
Style of Dates
Style of Short Date:This option displays Style of Dates.

By default, date format is dd-mm-yy. You can change the date format by selecting a format from the
List.
Separate Used in Short Date:
You can specify the separator for Date. By Default, hyphen (‘-‘) is the separator.
Configuration of Numbers
Decimal character to use:
You can specify a character for the decimal point.
Thousands separator to use:
You can specify a character for the thousand separator.

Put sign before currency or unit symbol:

If the option is set it to Yes, a Negative sign will be placed before the currency symbol, e.g. (-)$20. If
the option is set it to No, a Negative sign will be placed after the currency symbol, e.g. $(-)20.
Show numbers in Millions (and not Lakhs):
This option is used for showing numbers in Millions. If you set this option to Yes, the number will be
displayed in Millions. If you set this option to No, the number will be displayed in Lakhs.
Note: If you change any configuration under Style of Dates and Configuration of
numbers, you need to restart the application for those changes to take effect.

Table Configuration
Use Common Table for Stock Items
If this option is set to Yes, Tally.ERP 9 will display only the Stock Item Name in the List of Stock
Items during voucher entry.
Use 'Reducing List' for Tables
If this option is set to Yes, Tally.ERP 9 allows you to reduce the List for Tables to the extent of the
matching keywords entered by user and select the required details from the reduced List of Tables
based on the full or partial search keywords provided like Company name, Ledger name, Item name
etc.
[Type text] Page 5
Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Apply for All Columns
If this option is set to Yes, Tally.ERP 9 allows you to make search and reduce the List of Tables based
on all columns displayed in the List of Table. If the option is set it to No, it will search only in the first
column of the table.
Note: The option Apply for all Columns is a sub- option and is displayed only
when the option Use ‘Reducing List’ for Tables is enabled.

Table Configuration screen can also be invoked by pressing Ctrl + Alt +

F12 from Gateway of Tally
Show tables with Masters only in Current Language
If this option is set to Yes, Tally.ERP 9 displays all the Masters in the language selected under L:
Language configuration.
If this option is set to No, Tally.ERP 9 will display the default list of Masters in English and in any of
the Indian languages selected in the L: Language configuration.
By default, this option set to No.
Import/Export Options
Ignore errors & continue during data import
By default, this option is set to No. If you set this option to Yes , data will get imported even if errors
are reported.
Note: This is applicable only incase of X ML format import.
Overwrite vouchers during import: By default, this option is set to No. If you set this option to Yes ,
Tally. ERP 9 overwrite the existing vouchers while importing data instead of duplicating the same.
Export Base Currency Symbol along with Amount
This facilitates the export of the currency symbol along with the amount into XML format.
Other Options
Show Monthly reports with Graphs
By default this option is set to Yes. The reports are configured to display the Graphs in accordance
with the numeric information. The graphs will not be displayed in the reports if this option is set to No.
Use separate Menu for Final A/c Statements
By default, this option is set to No. If you set this option to Yes, a separate Menu Final Accounts will be
displayed in Gateway of Tally. Under this menu, Balance Sheet, Profit & Loss A/c, Cash Flow, Funds
Flow and Ratio analysis options are available.

Tally alert using beeps

If this option is set to Yes, an audio alert will be turned on and Tally. ERP 9 will gives a beep sound
whenever a transaction has been saved or abandoned.

Always show Info Panel

If this option is set to Yes, Tally. ERP 9 will always display the Information Panel in all the screens or
reports, but the user can hide the Info Panel using the [x] close button based on his requirement

[Type text] Page 6

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Numeric Symbols in Configuration in Tally. ERP 9
This enables you to set the number styles. The default styles and symbols are specified. However, you
have the option of changing them in the respective fields according to your preference.

For example, change negative sign from (-) to (+).

Go to Gateway of Tally > F12: Configure > Numeric Symbols

Note: If you change any configuration of Number Styles, you need to restart the
application for those changes to take effect.

Voucher Entry Configuration in Tally. ERP 9

This option allows you to configure the vouchers entries in Tally. ERP 9, both the Accounting and
Inventory Vouchers can be configured from this menu for additional information.

Go to Gateway of Tally > F12: Configure > Voucher Entry

[Type text] Page 7

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
By default, the above configuration options are displayed in the Voucher Entry Configuration screen,
which can be changed as per requirements.

Note: Depending upon the Company Features, options get added in Voucher
Entry configuration. For instance, if you enable Allow Multi Currency option
in F11 : Accounting Features, Show Forex Gain/Loss as on Voucher
Date option gets added in voucher entry configuration.

Accounting Vouchers

Skip Date field in Creation Mode (faster entry!)

By default, the Cursor skips the Date field during Voucher creation. If you do not want to skip the date
field then set this option to No

Use Single Entry Mode for Pymt/Rcpt/Contra

By default, Tally.ERP 9 displays single entry mode for payment/receipt/contra entry. If you want to
display it in double entry mode, then set this option to No

Use Payment / Receipt as contra

By enabling this option, you can enter contra in payment as well as receipt voucher

Use Cr/Dr instead of To/By during Entry

By enabling this option, you can change To/By to Cr/Dr in the Voucher Entry screen

Use Cheque Printing for Contra : By enabling this option, you can print the Cheques from Contra
Voucher itself while making the interbank transfers and Cash withdrawals. The Cheque printing
option will appear the for the Bank which is Credited

Warn on Negative Cash Balance

By Default, Tally.ERP 9 displays a Negative Cash balance warning Message. If you set it to No, this
error message will not be displayed

Pre-Allocate Bills for Payment/Receipt

By enabling this option, you can pre-allocate the bills before specifying the Ledger amount

Allow Cash Accounts in Journal

By enabling this option, you can select cash and also bank account in Journal

Allow Expenses / Fixed Assets in Purchase Voucher

By enabling this option, you can select the expenses and also Fixed Asset ledger in Purchase Voucher
Entry

[Type text] Page 8

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Allow income accounts in Sales Voucher

By enabling this option, you can select the income ledger in sales voucher entry

Show inventory Details

By default, Tally.ERP 9 displays inventory details in the voucher entry screen. If you set it to No, the
inventory details will not be displayed

Show Table of Bill details for selection

By default, Tally.ERP 9 displays Pending Bills list of a ledger account in the voucher entry screen. If you
set it to No, the pending bills list will not be displayed

Show Bill-wise Details

By default, Bill-wise details of a ledger account are displayed in the Voucher entry screen. If you set it
to No, Bill wise details will not be displayed

Expand into Multiple Lines: This is a sub-option of the Show bill-wise Details option. When you
enter credit days in the Bill-wise Details screen, Tally.ERP 9 displays the due date below the credit
days. By default, it displays both credit days and Due date in the voucher entry screen. If you set it
to No, it will display only credit day

Show ledger current balance:

By default, Tally.ERP 9 displays the ledger current balance up to last voucher entry date. If you set it
to No, the ledger current balance will not be displayed

Show balance as on voucher date

By default, Tally.ERP 9 displays the ledger current balance up to Last voucher entry date. If you set it
to Yes, it will display the ledger balance up to current voucher entry date

Show Forex Gain/Loss as on voucher Date

By default, Tally.ERP 9 displays the Forex Gain/Loss balance up to the Last voucher entry date. If you
set it to Yes, it will display the Forex Gain/Loss balance up to current voucher entry date

Inventory Vouchers

Use Reference number in Stock Journal

By enabling this option, you can add the voucher reference field in Stock Journal also

Show Compound Unit of Item based on Rate

By enabling this option, you will be allowed to show the compound unit of item based on the unit
provided in the Rate Per column.

[Type text] Page 9

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

Example: Compound Unit created as Kgs of 1000 grms. When the Quantity is typed as 12-250,
the Quantity will be displayed as 12-250 kgs and unit in Rate per as Kgs. Enable the option Show
Compound Unit of Item based on Rate, and type the required Unit in Rate Per column to change the
compound unit of the Item, i.e., if grms is typed in Rate Per column, the Quantity will automatically
change to 12,250 grms.

Show Full Details of Compound Unit

Enabling this option will display full details of compound unit in the Quantity field. If Kgs is typed in
Rate Per field, the Quantity field will display as 12 Kgs.250 grms.

Warn on Negative stock balance

By default, Tally.ERP 9 displays a warning message for negative stock balance. If you set it to No, the
error message will not be displayed.

Honor Expiry Dates usage for Batches

By default, Tally.ERP 9 displays expiry batches in the List of Active batches during Voucher Entry. If
you set it to No, expiry batches will not be displayed in the List of Active batches.
Show Balances as on Voucher Date
By default, Tally.ERP 9 displays the Stock Item balance up to the Last voucher entry date. If you set it
to Yes, it will display the Stock Item balance up to current voucher entry date

Show Godown-wise Details

This option is used only in the case of Rejection in and Rejection out vouchers. By default, Tally.ERP 9
displays the Godown details in Rejection in/out vouchers. If you set it to No, the godown details will
not be displayed in Rejection in/out vouchers.

Show Batch-Wise Details

This option is used to display batch information pertaining to Stock Items during Voucher Entry. If you
set it to No, the Batch-Wise details will not be displayed.

Working in Tally

Accounts Groups in Tally.ERP 9

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.

[Type text] Page 10

The Group behavior is classified into Capital or Revenue and more specifically into Assets, Liabilities,
Asst Prof
Income Shivakumar.R(Phd)
and Expenditure. JVIMS&C
The Groups ascertain whethere-Business & Comp
the same will affect Accounting
Profit and Loss Account
which is revenue in nature or Balance Sheet which is capital in nature.

A Discussion on Each of the Reserved Groups

Non-Revenue — Primary Groups

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
[Type text] Page 11
 option while creating the company. (refer to Company creation section for more details) Let us
Asstconsider
Prof Shivakumar.R(Phd)
these options: JVIMS&C e-Business & Comp Accounting

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

[Type text] Page 12

 Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term
AsstBank
Prof Shivakumar.R(Phd)
deposit JVIMS&C
accounts and so on. This allows youe-Business & investments
to view the total Comp Accounting
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

[Type text] Page 13

 the Profit & Loss Account, under this group. The Profit & Loss Account balance is displayed
Asstseparately
Prof Shivakumar.R(Phd)
in the Balance Sheet. JVIMS&C e-Business & Comp Accounting

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).

Revenue — Primary Groups

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.

Examples:

 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.
[Type text] Page 14
Purchase Account
Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
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.

Pre-defined Accounts Groups in Tally.ERP 9

By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The user can create any
number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub
Group.

There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary Groups and 13 are
Sub-Groups.

15 Primary Groups 13 Sub Groups

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

[Type text] Page 15

 Loans (Liability)
Asst Prof Shivakumar.R(Phd) JVIMS&CSundry Creditors
e-Business & Comp Accounting
Misc. Expenses (ASSET) Sundry Debtors
Purchase Accounts Unsecured Loans
Sales Accounts
Suspense A/c

Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which are Capital in
nature and 6 Primary Groups appear under Profit & Loss Account which are Revenue in nature.

13 Sub Groups are classified under the 15 Primary Groups and they appear in the Balance Sheet.

Pre defined Sub Groups 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: The Primary Group cannot be deleted, however, it can be renamed which is
not suggested.

Creating a Single Account Group in Tally.ERP 9

Group is a collection of Ledgers of the same nature, Tally.ERP 9 allows you to create groups as per
your requirements.

Go to Gateway of Tally > Accounts Info. > Groups > Create under Single Group

[Type text] Page 16

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

> >

The Group Creation screen is displayed as shown:

Name of Group

Enter the name of the Group to be created. For example “Administrative Expenses” in the name field.

Alias

Enter an alias name to allow access to the group using the Alias in addition to its name or leave it
blank. For example, for Administrative expenses, you can enter Office Expense or even an
alphanumeric code, say E001, as an alias

Under

Specify under which existing (Parent) group the sub-classification is required.

Note: If it is a new primary group, select Primary (requirement of a new primary

group is very rare, but the option exists). Creation of new Primary Group is not
allowed if Allow Advanced entries in Masters is set to No in F12: Configure. You
can also create a new Parent Group by using Alt+C.

Tally.ERP 9 has the flexibility of creating the related Masters from specified screens:

[Type text] Page 17

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Button Shortcut Keys Behaviour

L: Ledgers Ctrl+L Navigate to Ledger Creation screen

V: Vch Types Ctrl+V Navigate to Voucher Creation Screen

Creating Multiple Account Groups in Tally.ERP 9

Tally.ERP 9 allow you to create Multiple Groups simultaneously, you can create them by pressing
Enter on Create under Multiple Groups.

Go to Gateway of Tally > Accounts Info. > Groups > Create (under Multiple Groups)

You can create any number of Groups under an already created/selected Group. In this mode of group
creation, the sub-groups will automatically inherit the characteristics of their parent groups.

You can also create any number of Groups under different Groups by selecting All Items in “Under
Group” field.

Under Group

[Type text] Page 18

Select the parent group under which you want the new groups to be created from the List of Groups.
Asst
The Prof
group Shivakumar.R(Phd)
selected JVIMS&C
is displayed in the Under Group field. e-Business & Comp Accounting

Name of Group: Enter the name of the Group.

Under: If you select any group other than All Items in the Under Group field, then this column is filled
in automatically with the selected Group name and the cursor skips this column. This speeds up data
entry.

If you select All Items in the Under Group field, the cursor does not skip this field and allows you to
enter the parent group of each of them.

Note: To change individual group behavior created using multiple groups, use
single group alter option.

Button s in Multiple mode Group creation

Button Shortcut Keys Behaviour

F4: Parent F4 The Parent Group can be changed

L: Ledgers Ctrl+L Navigate to Ledger Creation screen

S: Cst Cat Ctrl+S Navigate to Cost Category Creation

Screen
C: CstCtr Ctrl+C Navigate to Cost Centre Creation Screen

O:Employee Groups Ctrl+O Navigate to Employee Group Creation

Screen
P: Employee Ctrl+P Navigate to Employee Creation Screen

Note: The default buttons available are Parent and Ledger and the rest of the
options displayed are based on the features enabled in F11: F1 Accounting
feature.

Displaying Account Group in Tally.ERP 9

You can display the Groups in Single mode or Multiple mode, since it is only display Tally.ERP 9 does
not allow you to alter any information in display mode.

Single Mode:
Go to Gateway of Tally > Accounts Info. > Group > Display (under Single Group)

[Type text] Page 19

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

Select the name of the Group from the List of Groups. You cannot make any changes in
the Display mode.

 Displaying a Single Group

 Displaying a Multiple Group

Go to Gateway of Tally > Accounts Info > Group > Display (under Multiple Group)

Displaying Multiple Groups

[Type text] Page 20

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Select the Group from the List of Groups to display all the Groups under the selected Group or select
All Items to display all Groups. The Multi Group Display screen lists Groups and the corresponding
details of the Groups.

Button:
F4: New Parent (Ctrl+F4) - You can navigate to select any other Group in the display mode by
selecting this button from the Button Bar.

Altering an Account Group in Tally.ERP 9

You can alter the Groups in Single mode or Multiple modes by selecting Alter from the menu to
change any information. You can change the Name of any reserved group, but its characteristics will
remain the same.

Single mode:

Go to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)

Select the Group that you wish to alter from the List of Groups. Make the necessary changes and click
Yes to save the changes.

 Altering a Single Group

[Type text] Page 21

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

Altering Multiple Group

Go to Gateway of Tally > Accounts Info. > Group > Alter (under Multi Groups)

Select the Group for which you want to alter from the List of Groups. In Multi Group Alteration

screen, make the necessary changes and click Yes to save changes.

Deleting a Group
Go to Gateway of Tally > Accounts Info > Groups > Single/Alter

The Delete function is performed through the single alteration mode. You cannot delete groups from
the Multiple Alteration mode.

1. Select the Group to be deleted.

2. Press Alt+D to delete.

Note: You cannot delete a group if it is a reserved group or a group that has sub -
groups or ledgers in it. A new group created under primary will not be reflected
in reports until you pass masters/transactions for that group.

Ledger Accounts in tally 9 ERP

What is Ledger?

A Ledger is the actual account head to which you identify a transaction and must be used in all
Accounting Vouchers. Without a ledger we cannot record any transactions.

Ex: Purchase, payments, sales, Receipts, etc, all these accounts heads are ledger Accounts.

Pre-defined Ledgers in Tally.ERP 9

[Type text] Page 22

There are two pre-defined ledgers available in Tally.ERP 9, they are:
Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Cash

This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the
date of books beginning from. You can also alter the name and even delete the Ledger.

Profit and Loss Account

This Ledger is created under the Group Primary. Previous year’s Profit or Loss is entered as the
opening balance for this ledger. The balance entered here is treated as the opening profit/loss and
shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.

 You cannot delete this ledger, but you can modify the same.

How to create Ledger in tally

To Creating a Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers

You can create either Single or Multiple Ledgers.

 Creating a Single Ledger

By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit
and Loss Account (direct Primary Account). You need to create all other accounts heads.

Go to Gateway of Tally > Accounts Info > Ledgers > Create

Ledgers can be created in Normal mode or in Advance mode.

[Type text] Page 23

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

Name
Enter the Name of the account. You can provide the full name of the account.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data
entry.

Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias name.

Under
All accounts must be classified under their appropriate Groups. Select the Group under which the
Ledger is created from the List of Groups.

(To create a new Group from this field press [ALT + C]).

Opening Balance
Opening Balance would be applicable in circumstances where the Ledger is an asset or a liability and if
it has a balance in the account as on the date of beginning of books in Tally.ERP 9.

 Creating a Multiple Ledger

By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit
and Loss Account (direct Primary Account). You need to create all other accounts heads.

Go to Gateway of Tally > Accounts Info > Ledgers > Create

[Type text] Page 24

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

There are not many options as there were in Single Ledger Method.Let’s look at it one by one.

Under Group – This option is similar to the Under option under Single Ledger Method.

But under this method, it works a bit differently.

If you select the group on the top as shown in the picture above, then you will not have to select the
group every time you create a ledger.

This works well if you want to create ledgers under only one group.

o Creating Ledgers under only One Group

For example, you want to create ledgers under Fixed Assets such as Furniture and Building it will be
as shown in the picture below.

[Type text] Page 25

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

As you can see, I have selected Fixed Assets as the group for the option Under Group.

Therefore when I enter the ledger name Tally will automatically select the group as Fixed Assets and
I only have to enter the amount for opening balance.

If you do not have any opening balance, you can leave it blank.

On the other hand, if you want to create ledgers but they are under different groups, you can do that
also.

o Creating Ledgers under Different Groups

If you want to create ledgers in Tally but they are under different groups, you can do it easily.

For the option – Under Group, you have to select All Items.

After you are complete with entering all the ledgers in this method, you can just press Enter twice
and all your ledgers will be created instantly in Tally.

I use the simple shortcut ALR for creating multiple ledgers in Tally. Or you can also use the following
steps:

How to View created Ledger in tally

Go to Gateway of Tally>Account info>Ledger>Display

[Type text] Page 26

Select the ledger account to see. Ledger display screen will be in front. You cannot modify anything
Asstthis
from Prof Shivakumar.R(Phd)
screen. JVIMS&C
Here is the view of ‘Depreciation Ledgere-Business & Comp Accounting
‘ I have created earlier.

How to Edit or alter created Ledger in tally

Gateway of Tally>Accounts info>Ledger>Alter

Ledger alteration screen will appear, press enter key to move forward and Backspace to move
backward through the screen.

Make necessary changes and save the screen.

[Type text] Page 27

Asst How
Prof to delete an account JVIMS&C e-Business & Comp Accounting
Shivakumar.R(Phd)
Gateway of Tally>Account info>Ledgers>Alter

A confirmation will be asked.

Confirm by pressing enter, or Y button from key board.

[Type text] Page 28

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting

[Type text] Page 29

Voucher Entry in Tally: JVIMS&C
Asst Prof Shivakumar.R(Phd) e-Business & Comp Accounting
A Voucher is a written document in support of a transaction. It is proof that a particular transaction has
taken place for the value started in the voucher. Voucher is necessary to audit the accounts.
They are two types of vouchers namely:
I Accounting voucher.
II Inventory voucher.

 Accounting vouchers:

Tally ERP9 is preprogrammed with a variety of accounting vouchers, each designed to record a
particular transaction. The standard accounting vouchers are:

o Contra voucher (F4)

o Payment voucher (F5)
o Receipt voucher (F6)
o Journal voucher (F7)
o Sales voucher (F8)
o Credit note voucher (Ctrl + F8)
o Purchase voucher (F9)
o Debit note voucher (Ctrl + F9)
o Reversing journal (F10)
o Memo vouchers (Ctrl + F10)

01. Contra voucher (F4):

[Type text] Page 30
Any transaction indicating transfer of funds fromCash Account to Bank Account,Bank Account to Cash
Asst Prof
AccountShivakumar.R(Phd) JVIMS&C
&Bank Account to Bank Accountis recordede-Business & Comp Accounting
by using Contra voucher.

The contra voucher is for Fund transfers between cash & bank account only.
Press <F4> at voucher entry screen to enter Contra voucher.
Example : cash deposited into Bank & cash withdrawn from bank for office use.

Journal entry:

Transfer fund from cash accounting and bank accounts.

Bank account A/C Dr. Debit

To Cash Account Credit

02. Payment voucher (F5) :

Any transaction which involves outflow of cash is recorded by using payment voucher. The payment
voucher is for all payments make through cash or Bank.

Press <F5> at the voucher entry screen to make a payment voucher.

Example : payment of rent by cash, Payment of salary by cheque. Etc..

 Journal entry :

Ram purchased goods for cash .

Goods A/C Dr. Debit

To Cash Account Credit

03. Receipt voucher (F6):

Any transaction which involves in inflow of cash is recorded by using Receipt voucher.

press <F6> at the voucher entry screen to make a receipt voucher.

Example:

Commenced business with cash, commission received, Amount received from sundry debtors.

 Journal entry :

Ram sold goods for cash .

Cash A/C Dr. Debit

To Goods Account Credit

[Type text] Page 31

04.
AsstJournal voucher (F7):
Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Any transaction which does not involve actual cash outflow or cash inflow is recorded by using journal
voucher.
press <F7> at the voucher entry screen to make a journal voucher.

Example:
Depreciation on fixed assets,
Preliminary expenses written off.

 Journal entry :

Charge depreciation on furniture.

Depreciation Dr. Debit

To Furniture Account Credit

05. Sales voucher (F8):

Any sales made on credit are recorded by using sales voucher. all sales transaction ( goods & services) are
entered in sales voucher.

In case cash sales receive payment immediately by cash or by cheque or credit card & since user do not
require tracking outstanding.

press <F8> at the voucher entry screen to enter sales voucher.

Example:Goods sold to suman on Credit, Ram purchased goods from us on credit.

 Journal entry :

Ram sold goods to Mr. Perfect on credit .

Mr. perfect A/C Dr. Debit

To Sales Account Credit

06. Credit note voucher ( Ctrl + F8):

Any goods sold on credit is returned by customer (sundry debtors) is recorded by using credit note
voucher.

For Ex: Goods returned by Suman, Goods return by ram..

[Type text] Page 32

07.
AsstPurchase voucher (F9):
Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Any purchase made on credit are recorded by using Purchase voucher.

press <F9> at Voucher Entry screen to enter a purchase voucher.

For Ex: Goods purchased from Mithun on account, brought goods from Palash – sundry creditor.

 Journal entry

Ram Purchased goods From Mr. Perfect on credit .

Purchase A/C Dr. Debit

To Mr. Perfect A/C Credit

08. Debit Note voucher ( Ctrl + F9):

Any goods purchased on credit which is returned to supplier (sundry creditor) is recorded by using debit
note voucher.

For Ex: Goods returned to Mithun,

Goods returned to Palash.

09. Reversing journal (F10):

Reversing journal are special journal that are automatically reversed after a specified date.

10. Memo Voucher ( Ctrl + F10):

This is a non-accounting voucher & the entries made by using this voucher will not affect ledger account,
Tally does not post these Entries to ledger account, but store them in Memo register.

How to writing/creating and save vouchers type:

Go to gate way Of Tally >Accounting info >Select voucher type >Create >

Enter Voucher name> Press enter and save

How to delete the voucher in Tally:

For deletion of vouchers following steps must be performed:

Go to gateway of tally > Accounts Info. > Voucher Types.>
Choose the required voucher, which must be deleted.>
Press “ALT + D” keys simultaneously.>
Press “Y” for message “Delete Yes/No”.

[Type text] Page 33

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
How to Altering Vouchers:

Go to gateway of tally > Accounts Info. > Voucher Types > Alter

Accounting Books & Registers:

Accounts books recorded individual transaction details which have been entered. Through the items
are posted to different ledgers. Tally ERP9 bring together all the transaction of one category into
books of accounts for view & printing.

For Ex:- the cash books records all the cash transactions (cash receipt & cash payment), bank book
records all the bank receipts and bank payments (cheques received &cheque issued) and so on

Tally ERP9 the following basic accounting books & registers can be generated:

01. Cash book.

02. Bank book.
03. Purchase Register.
04. Sales Register.
05. Journal Register.
06. Debit note Register.
07. Credit note Register.
08. Day book.

01. Cash book: cash book is a ledger which records all cash receipts & cash payments.
Go to gateway of tally > Display > Account books > Cash book.

02. Bank Book:bank book is a register which records all bank receipts & bank payments.
Go to gateway of tally > Display > Account books > Bank book.

03. Purchase Register:the purchase register is a record of all purchase transaction made by the
organization.
Go to gateway of tally > Display > Account books > Purchase register.

04. Sales Register:the sales register is a record of all sales transaction made by the organization.
Go to gateway of tally > Display > Account books > Sales register.

[Type text] Page 34

 05. Journal Register:Journal is a date wise record of all the transactions with details of the accounts
Asstdebited
Prof&Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
credited amount of each transaction.
Go to gateway of tally > Display > Account books > Journal register.

06. Debit note Register: a debit note is prepared by the buyer & it contains the date of goods returned,
the name of supplier, details of goods returned & reasons for returning the goods.
Go to gateway of tally > Display > Account books > Journal Register > Debit note register.

07. Credit note Register:a credit note is prepared by the seller & it contains the date of goods returned,
name of the customer, details of goods returned & the reasons for returning the goods.
Go to gateway of tally > Display > Account books > Journal Register > Credit note register.

08. Day Book:a day book records all transactions entered during relevant period.
Go to gateway of tally > Display > Daybook.

Illustration - 01 (BU. B.Com 2008)

Pass the necessary Journal Entries & name the group to which they belong in Tally 2014.

Jan 1 Murthy commenced business with cash Rs 2,50,000.

05 Opened current account in state bank of Mysore & deposited Rs 1,00,000.
08 Purchased goods for cash from Ramesh & co. Rs 12,000.
10 Sold goods for cash to Naveen Traders Rs 10,000.
18 Purchased goods from Nandi Traders for Rs 25,000.
20 Sold goods to Indian Traders for Rs 8,000.
22 Paid for Stationery Rs 1,500.
25 Wages paid Rs 1,800.
31 Paid through cheque Salaries Rs 12,000.Commission Rs 3,000.
Rent Rs 10,000.

Illustration - 02 (BU. B.Com 2009)

Pass necessary Journal Entries & name the group to which they belong in Tally. (2014)
Feb. 01 Saraswathi commenced business with cash Rs 1,00,000.
02 Purchased Machinery from Swathi& co. for cash Rs 10,000.
09 Purchased goods from DeepaRs 30,000.
16 Sold goods to SwethaRs 25,000.
18 Goods lost by fire Rs 2,000.
27 Withdrawn cash from business for personal use Rs 2,000.
28. Received commission Rs 5,000.

[Type text] Page 35

Asst Prof Shivakumar.R(Phd) JVIMS&C e-Business & Comp Accounting
Illustration - 03 (BU. B.Com 2010,2012 & 2015)

Pass necessary Journal entries & name the groups to which they belong in Tally.

1.1.2012 Mr. Manoj started “Orient Private ltd.” Business with cash Rs 10,00,000.
3.1.2012 Opened a bank account with HDFC Bank by depositing Rs 4,00,000.
4.1.2012 Purchased Machinery from Arch & co. for cash Rs 25,000.
6.1.2012 Goods purchased from Saravana for cash Rs 1,00,000.
10.1.2012 Sold goods for cash Rs 1,25,000.
13.1.2012 Withdraw from Bank Rs 10,000 for personal use.
14.1.2012 Goods purchased from A & co. an account Rs 70,000.
15.1.2012 Goods returned to A & Co. Rs 10,000.
17.1.2012 Received commission Rs 5,000.
19.1.2012 Sold goods to Srinivas Rs 25,000.
23.1.2012 Cash paid to A & Co. in full settlement of his account Rs 59,400.
30.1.2012 Paid by cheque rent Rs 5,000, Salary Rs 10,000 & Telephone bill Rs 4,000

[Type text] Page 36