Tally Prime

Company Creation
Gateway of Tally > Alt+F1> Enter > Enter > Create company ( select)
 Ledger Account Creation
A ledger is the actual account head to identify your transactions and are used in all
accounting vouchers. For example, purchase, payments, sales, receipts, and others accounts
heads are ledger accounts. Without a ledger, you cannot record any transaction. Predefined
Ledgers. Create ledgers one-by-one.

Gateway of Tally > Create > Ledger

Name of Account Under( Group Name of Account Under ( Group)

Capital Capital Account Investment Investment
Drawings(Dr) Capital Account All taxes Duties & Taxes
Purchase Purchase Account Loan to person Current Asset
Purchase return ( cr) Purchase Account All indirect expense Indirect expense
Sales Sales Account All indirect income Indirect income
Sales return(Dr) Sales Account Services Direct income
Bank Bank Account All fixed asset Fixed Asset
Loan Loans ( liability) All current asset Current Asset
Cash ( Page up) Cash in hand All current liability Current Liability
Profit & Loss a/c Primary Bank overdraft Bank OD A/c
Stock Creation
Stock Item refers to goods that you manufacture or trade. It is the primary inventory
entity and is the lowest level of information on your inventory. You have to create a
Stock Item in Tally. ERP 9 for each inventory item that you want to account for.
Create stock items on-by-one.

Gateway of Tally > Create > Stock items

Voucher Transaction
In Tally, an accounting voucher is a document used to record financial transactions such as
payments, receipts, purchases, and sales. These vouchers act as proof or evidence of the
transaction and provide an accurate record of financial activities in an organization.
Gateway of Tally > Vouchers >
Receipt ( F6), Payment ( F5), Contra ( F4), Journal ( F7), Purchase ( F9), Sales ( F8)

Receipt Voucher ( F6)

This voucher is using for All cash & cheque received transaction.
Eg:- Capital received by cash
Cr: Capital
Dr : Cash
Commission received by cash
Cr: Commission received
Dr: Cash
Sold Fixed by cash ( Sold furniture by cash)
Cr : Furniture
Dr: Cash
Cash received from our customer ( Cash received from Rahman)
Cr: Rahman
Dr: Cash

Payment Voucher ( F5)

This voucher is using for All cash & cheque Payment transaction.
Eg: Expenses Paid by cash ( Salary paid by cash)
Dr: Salary
Cr : Cash
Cash withdrew for personal use
Dr : Drawings
Cr : Cash
Purchased Fixed Asset by cash ( Furniture purchased )
Dr : Furniure
Cr: cash
Cash paid to our supplier ( cash paid to Raju)
Dr: Raju
Cr: Cash
Contra Voucher ( F4)

This voucher is using for All cash & Bank Transfer Transactions
Cash deposited to bank
Cr: cash
Dr : Bank
Cash withdrew from bank
Cr: bank
Dr : cash
Cash transferred to petty cash
Cr : cash
Dr : Petty cash
Journal Voucher (F7)

This Voucher is using for non cash transaction so all Credit transaction and
adjustment transactions.
Credit transations
1. Purchased goods and fixed assets on credit
2. Sold goods and fixed asset on credit
Eg:- Purchased goods from Raju on credit
Dr: Purchase
Cr: Raju ( New Ref) ( Sundry creditors)
Purchased Building from KK Traders on credit
Dr: Building
Cr: KK traders ( on account) ( Sundry creditors)
Sold goods to Rahman on Credit
Dr: Rahman ( New Ref) ( Sundry Debtors)
Cr: Sales
Sold Building to Malayile Group on credit
Dr: Malayile group ( On account) ( Sundry Debtors)
Cr: Building
Purchase Voucher ( F9)

All cash purchase transactions on goods are recorded this voucher

Eg:- Purchased goods by cash
Cr: Cash
Dr: Purchase
Sales Voucher (F8)

All cash Sales transactions on goods are recorded this voucher

Eg:- Sold goods by cash
Dr: Cash
Cr: Sales
 Financial year 1.4.2021 to 31.3.2022 Work -12

1.4.2021 Stared business with capital by cash 1000000

2.4.2021 Cash deposited to PNB bank 300000
4.4.2021 Purchased goods for cash 9000
5.4.2021 Purchased Machinery from Mx company on credit 5000
6.4.2021 Purchased goods from Anil co 6500 on credit
7.4.2021 Sold goods to Abc co 3000on credit
8.4.2021 Electricity charge paid by cash 690
10.4.2021 Rent received by cash 7000
11.4.2021 Advertisement charge paid by cash 900
12.4.2021 Sold Machinery to Pkr company 6500
13.4.2021 Purchased computer by cash 23000
14.4.2021 Cash paid to Anil company 3000
15.4.2021 Cash received from Abc company 1100
16.4.2021 Sold computer by cash 22000
17.4.2021 Purchased goods from Rahman 12000
18.4.2021 Purchased goods from Flash company 6000
19.4.2021 Sold goods to pj store on credit 9800
20.4.2021 Cash received from pj store 6500
22.4.2021 Purchased buliding by cash 100000
23.4.2021 Cash withdrew from bank 30000
24.4.2021 Cash wuthdrew for personal use 3000
25.4.2021 Wage paid by cash 600
26.4.2021 TApaid by cash 360
27.4.2021 Carriage inward paid by cash 300
28.4.2021 Sold buliding by cash 100000
29.4.2021 Purchased Lorry from Finco company 800000 on credit
30.4.2021 Cash paid to Finco company 50000
 Invoice Mode Transaction
Gateway of Tally > Voucher > Purchase (F9) , ( Ctrl+H - converting voucher to invoice)
Gateway of Tally > Voucher > Sales (F8) , ( Ctrl+H - converting voucher to invoice)
Steps of Purchase invoice ( F9)
1. Gateway of Tally > Vouchers > press F9 (Purchase). Alternatively, press Alt+G (Go To) >
Create Voucher > press F9 (Purchase).
2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this
case).

Steps of sales invoice ( F8)

1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales). Alternatively, Gateway of Tally >
Vouchers > press F8 (Sales).
2. Press Ctrl+H (Change Mode) > select Item Invoice. The voucher is in Item Invoice mode if
you can see the Name of Item column.

Invoice Mode Return Transaction

Purchase return ( Debit Note )
Sales return ( Credit Note)

Steps of Purchase return invoice or Debit Note

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Debit Note >
and press Enter. Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other
Vouchers) > type or select Debit Note > and press Enter.

Steps of Sales return invoice or Credit Note

1. Press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Credit Note.
...
2. Press Ctrl+H (Change Mode) and select the invoice mode per your business needs.
3. Party A/c Name: Select the party name.
4. Party Details: Provide the Buyer details.
 Order Transaction
Purchase order
1. Gateway of Tally > Vouchers > press F9 (Purchase). ...
2. Press F12 (Configuration) and set the options Provide Supplier details and Provide Receipt,
Order, and Import details to Yes to provide the supplier details.
3. Press Ctrl+A to accept and return to the voucher screen.

Sales order
1. Open the sales order voucher screen and specify the buyer details. ... ( ctr+F8)
2. Enter the sales Order no. ...
3. Select the Sales ledger to allocate the stock items.
4. Provide the stock item details. ...
Receipt note & Delivery note
Receipt note
A Receipt Note voucher is used to record receipt of goods/items at stores. For example , the
Company receives new stock item from a Supplier. If a Purchase Order exists for that
supply, selecting the PO reference in the Receipt Note will display its particulars.

Gateway of tally > Alter> Voucher type > Receipt note > Active this voucher type : Yes

Short key : ( Alt+F9)

Delivery note
Delivery note is used for recording goods delivered to the customer but bill not recorded

Gateway of tally > Alter> Voucher type > Receipt note > Active this voucher type : Yes

Short key : ( Alt+F8)

 Manufacturing Journal
In Manufacturing/Assembling organizations, there are number of components that go into
the manufacturing/ assembling of finished Goods. Once, the Bill of materials is created, you
can use Manufacturing Journal and specify the quantity of finished goods that are to be
manufactured.

Steps

1. Raw materials Purchasing ( Voucher > F9)

2. Set All raw materials for manufacturing a product ( create > stock item)

3. Manufacturing journal creation ( Alter > voucher type > stock journal

4. Manufacturing a product ( voucher > alt F7> manufacturing ( select )

6. Product sales ( Voucher > F8 ( sales) > select the item and sales)

Godown creation
TallyPrime considers all inventory under an internal godown called Main Location, and
therefore, movement of goods or stock will take place internally in Main Location. During
voucher entry, TallyPrime considers the Main Location as the default godown and does not
display any godown list for selection.

Gateway of tally > create > godown

Godown transfer transaction

Gateway of tally > voucher> Alt+F7

Physical stock
Physical Stock Voucher is used for recording the actual stock which is verified or counted.
It could happen that the Book Stocks and the Physical Stock do not match. It is not unusual
that the company finds a discrepancy between actual stock and computer stock figure.

Gateway of Tally > Vouchers > press Ctrl+F7 (Physical Stock). Alternatively, Alt+G (Go To) >
Create Voucher > press Ctrl+F7 (Physical Stock). Enter the physical stock details as a post-
dated entry and accept the voucher. Press Alt+G (Go To) > type or select Stock Summary >
and press Enter.

Payroll
The payroll feature also provides management related information, statutory forms and
reports in the prescribed formats such as: Pay Slip, Payroll Statements, Attendance and
Overtime Registers. Gratuity, Provident Fund (PF), Employee State Insurance (ESI),
National Pension Scheme (NPS).

Steps of payroll

SALARY

Gateway of tally > Create > Payroll Masters > Pay Heads
Name : Salary
Pay head type : Earning for employees
Income type : Fixed
Under : Indirect expense
Affect net salary : Yes
Name to be displayed in paylip : salary
Use calculation of gratuity : Yes
Calculation type : Flat rate
Calculation period : Month
(Save)
TA

Name : TA
Pay head type : Earning for employees
Income type : Fixed
Under : Indirect expense
Affect net salary : Yes
Use calculation of gratuity : NO
Name to be displayed in paylip : TA
Calculation type : Flat rate
Calculation period : Days
(Save)
BONUS

Name : Bonus
Pay head type : Earning for employees
Income type : Fixed
Under : Indirect expense
Affect net salary : Yes
Use calculation of gratuity : NO
Name to be displayed in paylip : Bonus
Calculation type : As computed Value
Calculation period : Month
Compute : On specified formula ( select)
Add pay head : salary ( select)
Slab type : Percentage ( select)
Value : ( Give the amount of percentage)
(Save)
PF

Name : PF
Pay head type : Deduction From employees
Income type : Fixed
Under : Current Liability
Affect net salary : Yes
Name to be displayed in paylip : Pf
Calculation type : As computed Value
Calculation period : Month
Compute : On specified formula ( select)
Add pay head : salary ( select)
Slab type : Percentage ( select)
Value : ( Give the amount of percentage)

MEDICARE

Name : Mdicare
Pay head type : Deduction From employees
Income type : Fixed
Under : Current Liability
Affect net salary : Yes
Name to be displayed in paylip : Pf
Calculation type : As computed Value
Calculation period : Month
Compute : On specified formula ( select)
Add pay head : salary ( select)
Slab type : Percentage ( select)
Value : ( Give the amount of percentage)
(save)

Assignment of Payroll transaction

Employee Group Employee Salary Ta PF Bonus Medicare

Name
Accountant Rahman 10000 15 2% 1% 3%
Manager Shamnad 15000 20 2% 1% 3%
Sales man Biju 5000 15 2% 1% 3%
Sales executive Muneer 3500 18 2% 1% 3%
Production Manager Samad 4000 14 2% 1% 3%
Sales girl Sajitha 4500 12 2% 1% 3%
Marketing executive Jamsheed 6000 15 2% 1% 3%
clerk Murali 3500 15 2% 1% 3%
Reception Geetha 4000 15 2% 1% 3%
Super wiser Ajay 3000 15 2% 1% 3%
At tender Ashok 2500 16 2% 1% 3%
Stock Manager Junaid 6600 20 2% 1% 3%
Production executive Jacob 3250 10 2% 1% 3%
GST
Tax is a contribution by the individual for the development of the country. A failure to pay.
Along with evasion of resistance to taxation, is punishable by law.

Direct taxs : Are taxes that are levied on the income of individuals or organizations. They
include income tax, corporate tax, wealth tax and inheritance tax . Direct Tax is depends
upon the status of the person responsible for paying tax. The person bearing the tax is
aware of his tax burden.

Indirect taxes : are those paid by consumers when they buy goods and services. These
include excise, service tax ( or Gst) and customs duties. Indirect tax is same on the end user
of any goods/services irrespective of whether the person is rich or poor. The person ie.
Ultimate customer bearing the tax burden may not be aware of the tax burden.

Direct tax Indirect tax

Tax imposed directly on the taxpayer Tax imposed on goods and services
Cannot be shifted to someone else Shifted to buyer and ultimately consumer
Based on principle of ability to pay Equally applicable to all
Example:- Income Tax Example:- GST, Customs Duty
Governed by Central Govt. of India Governed by both Central Govt & State Govt.

We have so many taxes under Direct and Indirect Taxes. As per the constitution of India
Dirct Tax i.e Income Tax is governed by central Government. Indirect Taxes are
administered by the Central Government and state Government

Taxes subsumed into GST

a) Central Excise duty

b) Duties of Excise (Medicinal and Toilet Preparations)
c) Additional Duties of Excise ( Textiles and Textile Products)
d) Additional Duties of Excise ( Goods of special Importance)
e) Additional Duties of customs ( commonly known as cvd)

Gst registration detail in tally prime

F11 > Enable goods & services tax ( Gst) Yes

State : Kerala
Registration Type : Regular
GSTIN/UIN : ( Gst number – (Type)
Gst Applicable from : ( Type the GST Applicable date)
Intra state Purchase Transaction Include GST

Gateway of tally > Vouchers > F9 ( purchase)

Supplier invoice number : give the invoice number Eg: 100215
Party name : ( Create or select the party name) Under : Sundry creditors State : Kerala
Set alter Gst detail : NO
Purchase Ledger : Alt+C > Create the purchase

Is gst applicable > Applicable ( Select)

Set alter gst detail > No
Type of supply > Goods ( select)
Name of Item
Create the stock item
Eg : Lux
Under : soap ( create)
Unit : Nos
Set standard rate : Yes
Standard cost : Purchase rate eg: 10

Statutory details
Gst Applicable : Applicable
Set Alter Gst details : Yes
Calculation type : on value
Taxability : Taxable
Itegrated tax : central tax 9% , state tax 9%

Creation of sgst
Alt+C > Sgst ( under : Duties & tax)
Type of duty / tax : Gst
Tax type : state tax > save
Creation of cgst
Alt +C > cgst ( under : duties & tax)
Type of duty / tax : Gst
Tax type : central tax > save

 Intra state Sale Transaction Include GST

Gateway of tally > Vouchers > F8 ( Sales)

Party name : ( Create or select the party name) Under : Sundry Debtors State : Kerala
Set alter Gst detail : NO
Purchase Ledger : Alt+C > Create the sales
 Is gst applicable > Applicable ( Select)
Set alter gst detail > No
Type of supply > Goods ( select)
Name of Item
Select the stock item
Eg : Lux

Select sgst
Select cgst
Cost category & cost centre

In TallyPrime, you can view the reports that help you to track income and
expenses that are incurred Cost Centre-wise. In case you do not want to use Cost
Centres, you can disable them as well. To disable the Cost Centres, you need to
delete them. In case expenses are allocated to Cost Centres, then those allocations
need to be moved to other Cost Centres before deleting the Cost Centres. You can
also delete a Cost Category if no Cost Centre or Profit Centre has been grouped
under it.

Steps

F11 > Enable cost centres : Yes

Create > Show more > cost category : Eg: Sales department (save)

Create > Cost centres> Eg: Ramesh, Suresh

Question : Salary paid by cash 50000

Cost category : Sales department

Cost cetre : Ramesh, Suresh

Payment (F5)

Dr: Salary ( create) : ctrl+I ( cost centre are applicablilty) Yes

Cr: cash