Tally Practical Content Record Note Procedure

1. Company Creation in Tally

To create a Company in Tally Prime, follow this step-by-step procedure for your practical
notes:
Step 1: Open Tally Prime
1. Launch Tally Prime on your computer.
Step 2: Go to Company Creation
1. From the Gateway of Tally (main screen), select Create Company.
Alternatively, if Tally Prime is already open, go to Alt + K (Company) > Create.
Step 3: Enter Company Details
1. Company Name: Enter the name of the company you want to create.
2. Mailing Name: Enter the official mailing name if it differs from the company name
(optional).
3. Address: Enter the address details, including the street address, city, and state.
4. Country: Choose the country from the list.
5. State: Select the appropriate state for GST (if applicable).
6. PIN Code: Enter the postal code.
7. Contact Details: Provide the company’s phone number, mobile number, fax, and email if
needed.
Step 4: Configure Financial and Books Information
1. Financial Year Begins From: Enter the start date of the financial year (e.g., 1-April-
2024).
2. Books Beginning From: Enter the start date for recording transactions. Usually, it’s the
same as the financial year.
Step 5: Set Security Features (if required)
1. Use Tally Vault Password: Set this to Yes if you want to protect the company with a
Tally Vault password. This encrypts all data for added security.
2. Use Security Control: Set this to Yes if you want to set up user-level security for
accessing the company data.
Step 6: Enable Features (Optional)
1. Enable GST (Goods and Services Tax): Set to Yes if applicable, and enter the GST
details.
2. Enable TDS (Tax Deducted at Source), TCS (Tax Collected at Source), and Payroll:
Configure these if applicable for your business.
Step 7: Save the Company
1. Press Ctrl + A or select Accept to save the company setup.
Step 8: Verify Company Creation
1. Once saved, the company’s name will appear on the Gateway of Tally screen. You can
now start recording transactions and accessing various accounting features for the newly
created company.
.
 2. Shutting a Company in Tally
To shut a company in Tally Prime, follow these steps for your practical notes:
Step 1: Open Tally Prime
1. Launch Tally Prime and make sure you’re in the Gateway of Tally where you can see
the list of companies currently open.
Step 2: Access Company Shut Option
1. From the Gateway of Tally, press Alt + F1 (shortcut for Shut Company).
Alternatively, go to Company > Shut Company.
Step 3: Select the Company to Shut
1. A list of open companies will appear. Use the arrow keys to select the company you want
to shut.
Step 4: Confirm Shutdown
1. Press Enter on the selected company.
2. Confirm your selection, and the company will be shut.
Step 5: Verify Shutdown
1. Once shut, the company will no longer appear in the list of open companies on the
Gateway of Tally.
Note: Shutting a company in Tally Prime does not delete it; it only closes it temporarily. You can
reopen it anytime from the Select Company option.
 3. Selecting a Company in Tally
To select a company in Tally Prime, follow this step-by-step procedure for your practical notes:
Step 1: Open Tally Prime
1. Launch Tally Prime on your computer.
Step 2: Go to Select Company Option
1. From the Gateway of Tally (main screen), go to Alt + F3 to open the Select Company
menu.
Alternatively, you can select Company > Select Company from the top menu.
Step 3: View the List of Companies
1. A list of all available companies will appear. These are the companies that you have
created and saved in Tally Prime.
Step 4: Choose the Company to Open
1. Use the arrow keys to highlight the company you want to select.
2. Press Enter to open the selected company.
Step 5: Verify the Selected Company
1. Once selected, the company’s name will appear at the top of the Gateway of Tally
screen, confirming it is now open and ready for use.
 4. Altering Company Details in Tally
To alter company details in Tally Prime, follow this step-by-step procedure for your practical
notes:
Step 1: Open Tally Prime
1. Launch Tally Prime on your computer and ensure the company you want to alter is open.
Step 2: Access Company Alteration
1. From the Gateway of Tally, press Alt + K to open the Company menu.
2. Select Alter from the list.
Step 3: Select the Company to Alter
1. A list of available companies will appear. Use the arrow keys to highlight the company
whose details you want to alter.
2. Press Enter to open the company in alteration mode.
Step 4: Modify the Company Details
1. Company Name: You can modify the company name if needed.
2. Mailing Name & Address: Update the mailing name, address, state, and other contact
details as required.
3. Financial Year & Books Beginning: These can be altered if the financial year or books
starting date has changed.
4. Security Controls: You can enable or modify the Tally Vault Password and Security
Control settings.
5. GST & Other Features: Update any statutory features like GST, TDS, or payroll as
needed.
Step 5: Save Changes
1. After making all necessary modifications, press Ctrl + A or select Accept to save the
changes.
Step 6: Verify Alteration
1. Go back to Gateway of Tally to confirm that the company details reflect the updated
information.
 5. F11: Company Features in Tally
To configure F11: Company Features in Tally Prime, follow this step-by-step procedure for
your practical notes:
Step 1: Open Tally Prime
1. Launch Tally Prime and ensure the company for which you want to configure features is
open.
Step 2: Access Company Features
1. From the Gateway of Tally, press F11 to open the Company Features menu.
Alternatively, you can go to Features > Company Features.
Step 3: Configure Accounting Features
1. In F11: Features, choose Accounting Features.
2. Here, you can enable or disable various accounting features such as:
o Maintain Accounts Only: Use this if only accounting is required, not inventory.
o Bill-wise Details: Enable to track outstanding bills for customers and suppliers.
o Cost Centers and Cost Categories: Enable if you need to track costs by
department or project.
o Interest Calculations: Enable to calculate interest on outstanding balances.
3. Press Ctrl + A to save changes.
Step 4: Configure Inventory Features
1. Go back to F11: Features and select Inventory Features.
2. Configure settings like:
o Maintain Multiple Godowns: Enable if you manage multiple storage locations.
o Use Tracking Numbers: Enable to track goods by serial number or batch.
o Use Reorder Levels: Enable to set reorder levels for inventory management.
3. Press Ctrl + A to save changes.
Step 5: Configure Statutory and Taxation Features
1. In F11: Features, select Statutory & Taxation.
2. Enable and configure tax features such as:
o Enable Goods and Services Tax (GST): Set to Yes if applicable and enter GST
details.
 o Enable Tax Deducted at Source (TDS) and Tax Collected at Source (TCS):
Enable if required for compliance.
o Payroll Statutory Deductions: Enable if you manage payroll, including PF, ESI,
and Professional Tax.
3. Press Ctrl + A to save changes.
Step 6: Configure Other Features
1. In F11: Features, select Others to configure additional features like:
o Maintain Payroll: Enable to manage payroll processing.
o Enable Remote Access: Use this to access the company remotely.
o Use Revise Transactions: Enable to maintain revision history of transactions.
Step 7: Save and Exit
1. After configuring the features, press Ctrl + A to save all settings.
.
 6. F12: Configuration in Tally
To configure F12: Configuration settings in Tally Prime, follow this step-by-step procedure for
your practical notes:
Step 1: Open Tally Prime
1. Launch Tally Prime and ensure you are on the Gateway of Tally.
Step 2: Access Configuration Menu
1. From the Gateway of Tally, press F12 to open the Configuration menu.
2. Here, you will find various configuration options to customize Tally Prime’s features
according to your needs.
Step 3: General Configuration
1. In the Configuration menu, select General.
2. Configure settings such as:
o Date Format: Choose a preferred date format.
o Sorting Methods: Set options for sorting ledgers, groups, vouchers, etc.
o Numerical Symbols: Select symbols for negative amounts or currency format.
3. Press Ctrl + A to save changes.
Step 4: Accounting Configuration
1. Go back to the F12: Configuration menu and select Accounting.
2. Customize accounting options, including:
o Show Inventory Details: Enable to display inventory details within accounting
vouchers.
o Maintain Bill-wise Details: Set this to Yes to track outstanding bills by
customer/supplier.
o Enable Multi-Currency: Choose Yes to handle multiple currencies.
3. Press Ctrl + A to save changes.
Step 5: Inventory Configuration
1. In the F12: Configuration menu, choose Inventory.
2. Configure inventory settings, including:
o Integrate Accounts with Inventory: Set this to Yes if you want inventory values
reflected in accounts.
 o Use Separate Discount Columns: Enable for separate columns for item-wise
discounts.
o Use Tracking Numbers: Enable if you want to track inventory batches or serial
numbers.
3. Press Ctrl + A to save changes.
Step 6: Invoice/Order Entry Configuration
1. Go back to F12: Configuration and select Invoice/Orders Entry.
2. Configure options for invoicing and order management:
o Allow Invoicing: Enable this if you want to use Tally for invoicing.
o Use Payment Terms: Set this to manage payment terms and credit periods.
o Print Item Names in Capitals: Choose if you want item names in uppercase.
3. Press Ctrl + A to save changes.
Step 7: Printing Configuration
1. In F12: Configuration, select Printing to configure print settings.
2. Configure printing options like:
o Print Date and Time of Report: Enable to print the report date and time.
o Logo Printing: Enable this if you want your company logo on invoices or reports.
o Options for Aligning Information: Adjust alignment and formatting options.
3. Press Ctrl + A to save changes.
Step 8: Taxation Configuration
1. Go back to F12: Configuration and select Taxation.
2. Configure tax-related settings:
o Enable GST Details: Set options for displaying GST details.
o VAT/TDS Deduction Configurations: Configure deductions if relevant to your
business.
3. Press Ctrl + A to save changes.
Step 9: Save and Exit
1. Once all configurations are set, press Ctrl + A to save all changes and exit the
Configuration menu.
 7. Single Ledger Creation in Tally
Step 1: Open Tally Prime
1. Launch Tally Prime and ensure you’re in the Gateway of Tally screen.
Step 2: Access Ledger Creation
1. From the Gateway of Tally, go to Create by pressing Alt + C or selecting Create from
the menu.
2. Choose Ledger to open the Single Ledger Creation screen.
Step 3: Enter Ledger Details
1. Name: Enter the name of the ledger (e.g., Sales, Purchase, or Rent).
2. Under: Select the appropriate group under which this ledger will be categorized, such as
Sundry Debtors, Sundry Creditors, Sales, Purchases, etc.
3. Mailing Details: Add mailing details (if necessary) such as address, contact information,
and GST details.
Step 4: Configure Accounting Options
1. Inventory Values are Affected: Set this to Yes if this ledger should reflect inventory
changes (relevant for sales/purchase ledgers).
2. Maintain Balances Bill-by-Bill: For accounts like Sundry Debtors or Sundry
Creditors, set this to Yes if you need bill-wise details for outstanding balances.
Step 5: Set Tax Information (Optional)
1. If this ledger involves GST or TDS, fill in the tax-related fields, such as GST
Registration Type, Set/Alter GST Details, and TDS Deductible as per the ledger
requirements.
Step 6: Set Opening Balance (If Applicable)
1. If the ledger has an existing balance, enter the Opening Balance and specify whether it’s
a debit (Dr) or credit (Cr).
Step 7: Save the Ledger
1. After entering all necessary details, press Ctrl + A or select Accept to save the ledger.
Step 8: Verify Ledger Creation
1. To verify, return to Gateway of Tally > Display > List of Accounts > Ledgers to ensure
the new ledger appears in the list.
 .

8. Multi Ledger Creation in Tally

Step 1: Open Tally Prime
1. Launch Tally Prime and ensure you are in the Gateway of Tally screen.
Step 2: Access Multi Ledger Creation
1. From the Gateway of Tally, go to Create by pressing Alt + C or selecting Create from
the menu.
2. Choose Multi Ledger to open the Multi Ledger Creation screen.
Step 3: Select Ledger Group
1. In the Under Group field, choose the group under which the new ledgers will be created.
For example:
o Sundry Debtors for customer accounts.
o Sundry Creditors for supplier accounts.
o Sales Accounts or Purchase Accounts for sales and purchase ledgers.
2. Selecting a group here will automatically categorize all new ledgers created in this
session under the selected group.
Step 4: Enter Ledger Details
1. Name of Ledger: In the Name of Ledger field, enter the name for each new ledger.
2. Opening Balance: Enter the Opening Balance for each ledger if there is one, specifying
whether it’s a debit (Dr) or credit (Cr).
Step 5: Add Additional Ledgers (If Required)
1. Use the arrow keys to move to the next row and add additional ledger names and opening
balances as needed.
Step 6: Save Multi Ledger Creation
1. Once all ledgers are entered, press Ctrl + A or select Accept to save the ledgers.
Step 7: Verify Multi Ledger Creation
1. To verify, go to Gateway of Tally > Display > List of Accounts > Ledgers to confirm
that all new ledgers appear in the selected group.
 9. Altering and Displaying Ledgers in Tally
Altering a Ledger in Tally Prime
Step 1: Open Tally Prime
1. Launch Tally Prime and navigate to the Gateway of Tally screen.
Step 2: Access Ledger Alteration
1. Go to Display by selecting it from the main menu.
2. Choose Accounts Book and then select Ledgers.
3. From the list of ledgers, find the ledger you want to alter.
4. Press Enter on the desired ledger to open it.
Step 3: Make Changes
1. Edit Ledger Details: You can change any of the fields as needed, such as:
o Name: Change the name of the ledger.
o Under: Alter the group under which the ledger is categorized.
o Mailing Details: Update any address or contact information.
o Tax Information: Modify tax-related details if applicable.
o Opening Balance: Update the opening balance if necessary.
Step 4: Save Changes
1. After making the necessary alterations, press Ctrl + A or select Accept to save the
changes.
 9b.Displaying a Ledger in Tally Prime
Step 1: Open Tally Prime
1. Launch Tally Prime and ensure you’re at the Gateway of Tally screen.
Step 2: Access Ledger Display
1. From the Gateway of Tally, navigate to Display.
2. Select Accounts Book, then choose Ledgers.
Step 3: View Ledger List
1. A list of all ledgers will be displayed. You can scroll through the list to find the specific
ledger you want to display.
2. You can also filter the list by group or use the Search feature to quickly find the ledger.
Step 4: Open the Desired Ledger
1. Highlight the ledger you wish to view and press Enter. This will display the ledger’s
details, including transactions, opening balance, and any other relevant information.
Step 5: Exit the Ledger Display
1. To return to the ledger list, press Esc.
2. To go back to the Gateway of Tally, continue pressing Esc until you reach the main
screen.
 10. Group Creation
To create a Group in Tally Prime, follow this step-by-step procedure for your practical notes:
Step 1: Open Tally Prime
1. Launch Tally Prime and open the company for which you want to create a group.
Step 2: Go to Chart of Accounts
1. From the Gateway of Tally, select Chart of Accounts.
2. In Chart of Accounts, choose Groups.
Step 3: Create a New Group
1. Select Create (you can press Alt + C as a shortcut).
2. Enter the name of the new Group. Ensure it's descriptive of the accounts it will
categorize, like Sundry Debtors, Sundry Creditors, or any custom group based on your
need.
3. Under Group: Specify the parent group this new group will fall under, such as Current
Assets or Indirect Expenses.
Step 4: Define Group Features
1. Should Nett Transactions of This Group Be Netted? Choose Yes or No based on
whether you want a summarized view.
2. Used for Calculation? Choose Yes if you want the group to be used for specific
calculations (like taxes or interest) or No otherwise.
3. Method to Allocate When Used in Purchase Invoice: Select a method if this group will
be involved in purchase allocation.
Step 5: Save the Group
1. Press Ctrl + A or select Accept to save the group.
Step 6: Verify Group Creation
1. Go back to Chart of Accounts and select Groups to view your newly created group.
 11. Single Group Creation in Tally
To create a Single Group in Tally Prime, follow this step-by-step procedure for your practical
notes:
Step 1: Open Tally Prime
1. Launch Tally Prime and select the company for which you want to create a single group.
Step 2: Access the Group Creation Screen
1. From the Gateway of Tally, go to Create.
2. Under Masters, choose Accounts Info.
3. Select Groups and then Create.
Step 3: Enter Group Details
1. Name: Enter the name of the new group. Use a descriptive name that reflects its purpose,
like Commission Received or Miscellaneous Expenses.
2. Alias: (Optional) Enter an alias for the group if you want to use a shorter or alternate
name.
3. Under: Choose the parent group under which this group should be classified. For
example, select Indirect Incomes for a group like Commission Received.
Step 4: Set Group Features
1. Should Nett Transactions of This Group Be Netted?: Choose Yes to view netted
transactions or No to view each transaction individually.
2. Used for Calculation (e.g., Taxes, Discounts): Set to Yes if this group will be used in
calculations, like discounts or taxes.
3. Method to Allocate When Used in Purchase Invoice: Choose an allocation method if
this group is used in purchase invoicing.
Step 5: Save the Group
1. Press Ctrl + A or select Accept to save the group.
Step 6: Verify the Group Creation
1. Go back to Gateway of Tally > Chart of Accounts > Groups to confirm your group
was created successfully.
 12. Multiple Group Creation in Tally
Step 1: Open Tally Prime
1. Launch Tally Prime and ensure you are on the Gateway of Tally screen.
Step 2: Access Group Creation
1. From the Gateway of Tally, go to Create by pressing Alt + C or selecting Create from
the menu.
2. Choose Group to open the Group Creation screen.
Step 3: Create Groups
1. Group Name: In the Name field, enter the name of the first group you want to create
(e.g., Sundry Debtors, Sundry Creditors, Sales, Purchases, etc.).
2. Under: Select the appropriate parent group under which this new group will be
categorized. For example:
o For Sundry Debtors, select Current Assets.
o For Sundry Creditors, select Current Liabilities.
3. Group Type: Choose the type of group (e.g., Primary or Sub-group).
Step 4: Add Additional Groups
1. To create multiple groups in one session, continue entering details for additional groups
by moving to the next row.
2. Fill in the Name and Under fields for each subsequent group.
Step 5: Save the Groups
1. After entering all the group details, press Ctrl + A or select Accept to save the groups.
Step 6: Verify Group Creation
1. To verify that the groups have been created, go to Gateway of Tally > Display > List of
Accounts > Groups to confirm that all new groups appear in the list.
Additional Tips
 Editing Groups: If you need to make changes to any group, use the Alter option by
pressing Alt + A from the Gateway of Tally and follow the same procedure as above to
alter group details.
 Deleting Groups: If you need to delete a group, go to Gateway of Tally, select Display,
then List of Accounts, choose Groups, and press Alt + D to delete the unwanted group.
 13. Displaying Groups in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime and ensure you are at the Gateway of Tally screen.

Step 2: Access Group Display

1. From the Gateway of Tally, navigate to Display.

2. Select List of Accounts and then choose Groups.

Step 3: View Group List

1. A list of all groups will be displayed. You can scroll through the list to view all created
groups.
2. Use the Search feature (press Alt + S) if you want to quickly find a specific group by
typing its name.

Step 4: Open a Specific Group

1. Highlight the group you wish to view and press Enter. This will display details about the
selected group, including any associated ledgers.

Step 5: Exit Group Display

1. To return to the group list, press Esc.

2. To go back to the Gateway of Tally, continue pressing Esc until you reach the main
screen.
 13b.Displaying Ledgers in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime and ensure you are at the Gateway of Tally screen.

Step 2: Access Ledger Display

1. From the Gateway of Tally, go to Display.

2. Select List of Accounts and then choose Ledgers.

Step 3: View Ledger List

1. A list of all ledgers will be displayed. You can scroll through this list to view all ledgers.
2. Use the Search feature (press Alt + S) if you want to quickly find a specific ledger by
typing its name.

Step 4: Open a Specific Ledger

1. Highlight the ledger you wish to view and press Enter. This will display the ledger
details, including transactions, opening balance, and any other relevant information.

Step 5: Exit Ledger Display

1. To return to the ledger list, press Esc.

2. To go back to the Gateway of Tally, continue pressing Esc until you reach the main
screen.
 14. Displaying Groups in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime on your computer.

2. Ensure you are at the Gateway of Tally screen.

Step 2: Access Group Display

1. From the Gateway of Tally, navigate to the Display option.

2. Select List of Accounts from the dropdown menu.

Step 3: Choose Groups

1. In the List of Accounts, select Groups. This will take you to the Groups screen.

Step 4: View Group List

1. A list of all the groups created in Tally will be displayed.

2. You can scroll through the list to view all the groups.
3. If you want to quickly find a specific group, you can use the Search feature:
o Press Alt + S.
o Type the name of the group you want to find.

Step 5: Open a Specific Group

1. Highlight the group you wish to view by using the arrow keys.
2. Press Enter. This will display details about the selected group, including:
o The name of the group.
o The group under which it is categorized.
o Any associated ledgers under that group.

Step 6: Exit Group Display

1. To return to the group list, press Esc.

2. To go back to the Gateway of Tally, continue pressing Esc until you reach the main
screen.

Additional Tips:

 Sorting Groups: You can sort groups in different orders by pressing the F2 key and
selecting your preferred sorting option.
 Viewing Group Summary: You can view a summary of transactions for a selected
group by selecting it and then pressing Enter on the Group Summary option.
  Exporting Group Details: If needed, you can export group details using the Export
option available in the display menu.

15.Displaying Ledgers in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime on your computer.

2. Ensure you are at the Gateway of Tally screen.

Step 2: Access Ledger Display

1. From the Gateway of Tally, navigate to Display.

2. Select List of Accounts from the dropdown menu.

Step 3: Choose Ledgers

1. In the List of Accounts, select Ledgers. This will take you to the Ledgers screen.

Step 4: View Ledger List

1. A list of all the ledgers created in Tally will be displayed.

2. You can scroll through the list to view all the ledgers.
3. If you want to quickly find a specific ledger, you can use the Search feature:
o Press Alt + S.
o Type the name of the ledger you want to find.

Step 5: Open a Specific Ledger

1. Highlight the ledger you wish to view by using the arrow keys.
2. Press Enter. This will display the details of the selected ledger, including:
o Ledger name.
o Group it is categorized under.
o Opening balance.
o Transaction history for the selected ledger.

Step 6: View Ledger Transactions

1. Within the ledger details, you can view various transactions:

o Press Alt + V to view the voucher entries related to that ledger.
o You can scroll through the transactions to see details such as date, amount, and
transaction type.

Step 7: Exit Ledger Display

1. To return to the ledger list, press Esc.

 2. To go back to the Gateway of Tally, continue pressing Esc until you reach the main
screen.

Additional Tips:

 Sorting Ledgers: You can sort the list of ledgers by pressing F2 and selecting your
preferred sorting option.
 Filtering Ledgers: Use the Filter option to display ledgers based on specific criteria
(e.g., only active ledgers).
 Exporting Ledger Details: If needed, you can export ledger details using the Export
option available in the display menu.
 16.Creation of Stock Item in Tally Prime
Step 1: Open Tally Prime
1. Launch Tally Prime on your computer.
2. Ensure you are at the Gateway of Tally screen.
Step 2: Access Stock Item Creation
1. From the Gateway of Tally, go to Create by pressing Alt + C or selecting Create from
the menu.
2. Choose Stock Item from the options displayed.

Step 3: Enter Stock Item Details

1. Stock Item Name: In the Name field, enter the name of the stock item you want to create
(e.g., Laptop, Chair, Pens, etc.).
2. Under: Select the relevant inventory group under which this stock item will be
categorized. If you haven't created any inventory groups yet, you can create one by
selecting Create Group from this field.
3. Units: Specify the unit of measurement for the stock item (e.g., Nos, Kg, Litre, etc.).
4. Rate: Enter the rate at which the stock item is to be sold or purchased.
5. Opening Balance: If you want to enter an opening stock balance, specify the quantity
and value (optional).
6. Godown: If you maintain multiple godowns (warehouses), you can specify the default
godown for this stock item.
7. Inventory Valuation: Select the method of inventory valuation (e.g., FIFO, Weighted
Average, etc.) if applicable.
8. Additional Information: You may also see additional fields based on your Tally
configuration:
o HSN/SAC Code: Enter the HSN (Harmonized System of Nomenclature) or SAC
(Service Accounting Code) if required for tax purposes.
o GST: If applicable, select the appropriate GST rate for the stock item.

Step 4: Save the Stock Item

1. After entering all the necessary details, press Ctrl + A or select Accept to save the stock
item.
Step 5: Verify Stock Item Creation
1. To verify that the stock item has been created, go to Gateway of Tally > Display >
Inventory Books > Stock Item.
2. Here, you can see a list of all stock items created. You can scroll through the list or
search for the newly created item.

Additional Tips:
 Editing Stock Items: If you need to make changes to any stock item, use the Alter
option by pressing Alt + A from the Gateway of Tally and follow the procedure to
modify stock item details.
 Deleting Stock Items: To delete a stock item, navigate to the Stock Item list, select the
item, and press Alt + D to delete it.
 Batch-wise Entry: If you maintain stock in batches, you can enable batch-wise details
while creating or altering stock items.
 17. Creation of Godown in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime on your computer.

2. Ensure you are at the Gateway of Tally screen.

Step 2: Access Godown Creation

1. From the Gateway of Tally, navigate to Create by pressing Alt + C or selecting Create
from the menu.
2. Choose Godown from the options displayed.

Step 3: Enter Godown Details

1. Godown Name: In the Name field, enter the name of the godown you want to create
(e.g., Main Warehouse, Branch Office, etc.).
2. Under: Choose the relevant group under which this godown will be categorized (if
applicable). This is usually set as Godowns.
3. Address: Enter the address of the godown if required. This can help in identifying the
location of your godown.
4. Inventory Values: If you want to maintain the inventory values at the godown level,
ensure this option is enabled.
5. Active/Inactive: You can mark the godown as active or inactive based on its current
status.

Step 4: Save the Godown

1. After entering all the necessary details, press Ctrl + A or select Accept to save the
godown.

Step 5: Verify Godown Creation

1. To verify that the godown has been created, go to Gateway of Tally > Display >
Inventory Books > Godowns.
2. Here, you can see a list of all the godowns created. You can scroll through the list or
search for the newly created godown.
Additional Tips:
 Editing Godown Details: If you need to make changes to any godown, use the Alter
option by pressing Alt + A from the Gateway of Tally and follow the procedure to
modify godown details.
 Deleting Godowns: To delete a godown, navigate to the Godown list, select the godown,
and press Alt + D to delete it.
 Managing Stock: Once you create a godown, you can assign stock items to this godown
when entering stock or recording transactions.
 18. Trading and Profit & Loss Account in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime on your computer.

2. Ensure you are at the Gateway of Tally screen.

Step 2: Select the Company

1. If you have multiple companies, use the Select Company option to choose the company
for which you want to view the Trading and Profit & Loss Account.
2. Press Enter to open the selected company.

Step 3: Generate Trading Account

1. From the Gateway of Tally, navigate to Reports.

2. Select Financial Reports.
3. Choose Trading Account from the options.

Step 4: Configure Trading Account

1. You will see a Trading Account report showing the following:

o Sales: Total sales made during the accounting period.
o Cost of Goods Sold (COGS): This includes purchases and any opening and
closing stock.
o Gross Profit/Loss: The difference between sales and cost of goods sold.
2. You can customize the report for different periods or adjust the settings using the F2 key
(Change Period) to view specific dates.

Step 5: Generate Profit & Loss Account

1. From the Trading Account screen, you can navigate back to Financial Reports.
2. Select Profit and Loss Account from the options.

Step 6: Configure Profit & Loss Account

1. The Profit & Loss Account report will display:

o Gross Profit: Carried forward from the Trading Account.
o Operating Expenses: Include all expenses related to the business operations
(salaries, rent, utilities, etc.).
o Net Profit/Loss: The final profit or loss after all expenses have been deducted
from the gross profit.
2. Again, you can customize the report for different periods using the F2 key.
Step 7: Viewing Reports

1. You can navigate through the reports using the arrow keys.
2. Press Enter to drill down into specific figures for more detailed transactions.

Step 8: Printing or Exporting Reports

1. If you wish to print the Trading or Profit & Loss Account:

o Press Alt + P to print.
o Select your printing options and proceed.
2. To export the reports:
o Press Alt + E.
o Choose the format (like Excel, PDF) and save the report.

Step 9: Exit Reports

1. To exit the Trading or Profit & Loss Account, press Esc to go back to the previous menu.
2. Continue pressing Esc to return to the Gateway of Tally.

Additional Tips:

 Adjusting Date Range: You can change the reporting period to generate accounts for
different time frames, such as monthly, quarterly, or yearly.
 Analysis: Utilize the reports for analysis by comparing with previous periods or budgets.
 Error Checking: Regularly review the Trading and Profit & Loss accounts to identify
discrepancies and ensure accuracy in financial reporting.
 19.Balance Sheet in Tally Prime

Step 1: Open Tally Prime

1. Launch Tally Prime on your computer.

2. Ensure you are at the Gateway of Tally screen.

Step 2: Select the Company

1. If you have multiple companies, use the Select Company option to choose the company
for which you want to view the Balance Sheet.
2. Press Enter to open the selected company.

Step 3: Access the Balance Sheet

1. From the Gateway of Tally, navigate to Reports.

2. Select Financial Reports.
3. Choose Balance Sheet from the options displayed.

Step 4: Viewing the Balance Sheet

1. The Balance Sheet will display a structured report, divided into:

o Liabilities: This section shows all the sources of funds, including equity, long-
term and short-term liabilities.
o Assets: This section details all the uses of funds, including current and fixed
assets.
2. You will see totals for each section, with the Total Liabilities equaling Total Assets,
confirming that the accounting equation (Assets = Liabilities + Equity) is satisfied.

Step 5: Configure the Balance Sheet

1. You can customize the report for different periods or adjust the settings using the F2 key
(Change Period) to view specific dates.
2. To view additional details, navigate through the sections by pressing Enter on any item
(e.g., liabilities or assets) to see the underlying ledger accounts.

Step 6: Analyzing the Balance Sheet

1. Analyze the balance sheet to assess the financial position of the company.
2. Use the figures to evaluate liquidity, solvency, and overall financial health.

Step 7: Printing or Exporting the Balance Sheet

1. If you wish to print the Balance Sheet:

o Press Alt + P to print.
 o Select your printing options and proceed.
2. To export the report:
o Press Alt + E.
o Choose the format (like Excel, PDF) and save the report.

Step 8: Exit Reports

1. To exit the Balance Sheet, press Esc to go back to the previous menu.
2. Continue pressing Esc to return to the Gateway of Tally.

Additional Tips:

 Comparative Analysis: You can generate comparative Balance Sheets for different
periods to assess changes in financial position over time.
 Ratios: Use figures from the Balance Sheet to calculate key financial ratios such as the
current ratio and debt-to-equity ratio for financial analysis.
 Year-End Closing: Ensure all transactions are recorded before generating the Balance
Sheet for accurate reporting.
 20. Types of Assets and Liabilities in a Balance Sheet

1. Types of Assets

Assets are resources owned by the business, and they are classified into two main categories:
Current Assets and Non-Current Assets (or Fixed Assets).

A. Current Assets

Current assets are short-term assets that are expected to be converted into cash or used up within
one year. Common types include:

 Cash and Cash Equivalents: Physical cash or bank balances.

 Inventory: Goods available for sale or raw materials.
 Accounts Receivable: Amounts due from customers for sales made on credit.
 Short-Term Investments: Investments that can be quickly liquidated.
 Prepaid Expenses: Payments made for services not yet rendered (e.g., insurance).

B. Non-Current Assets (Fixed Assets)

Non-current assets are long-term investments that will provide value to the business for more
than one year. Common types include:

 Property, Plant, and Equipment (PP&E): Land, buildings, machinery, and vehicles.
 Intangible Assets: Non-physical assets like patents, trademarks, and goodwill.
 Long-Term Investments: Investments that the company intends to hold for more than a year.

2. Types of Liabilities

Liabilities are obligations that the business owes to outside parties, and they are classified into
two main categories: Current Liabilities and Non-Current Liabilities.

A. Current Liabilities

Current liabilities are obligations that are expected to be settled within one year. Common types
include:

 Accounts Payable: Amounts owed to suppliers for goods and services received.
 Short-Term Loans: Loans or borrowings that are due within one year.
 Accrued Expenses: Expenses that have been incurred but not yet paid (e.g., salaries, taxes).
 Unearned Revenue: Payments received before services are performed (e.g., advance
payments).

B. Non-Current Liabilities
Non-current liabilities are long-term obligations that are due beyond one year. Common types
include:

 Long-Term Loans: Loans that are payable over a period longer than one year.
 Bonds Payable: Debt securities issued by the company that must be paid back at a future date.
 Deferred Tax Liabilities: Taxes that are owed but not yet paid, typically due to timing
differences.

Practical Procedure for Viewing Assets and Liabilities in Tally Prime

1. Open Tally Prime: Launch Tally Prime and select the company for which you want to
view the Balance Sheet.
2. Navigate to Balance Sheet:
o Go to Reports from the Gateway of Tally.
o Select Financial Reports and then Balance Sheet.

3. Viewing Assets and Liabilities:

o The Balance Sheet will display the Assets section, including Current and Non-Current
Assets, followed by the Liabilities section, which includes Current and Non-Current
Liabilities.
o To view detailed breakdowns, select each category (e.g., Current Assets or Long-Term
Loans) to see the underlying ledgers.

4. Export or Print: You can also export or print the Balance Sheet for further analysis or
reporting using Alt + E (for export) or Alt + P (for print).

Additional Information

Understanding the types of assets and liabilities in a Balance Sheet is crucial for evaluating the
financial health of a business. Tally Prime allows users to easily categorize and manage these
accounts, providing insights into their operations and financial position.
 21. Creation, Alteration, and Deletion of Primary and Secondary Accounting
Groups in Tally Prime

1. Creation of Primary and Secondary Accounting Groups

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Navigate to the Gateway of Tally

 Ensure you are at the Gateway of Tally.

Step 3: Access the Group Creation Menu

1. Go to Accounts from the Gateway.

2. Select Groups.
3. Press Alt + C or select Create to create a new group.

Step 4: Enter Group Details

1. Group Name: Enter the name of the group you want to create.
2. Under: Choose whether it is a Primary or Secondary group:
o To create a Primary Group, select a relevant primary group from the list (e.g.,
Liabilities, Assets, Income, Expenses).
o To create a Secondary Group, select the primary group under which this
secondary group will fall.
3. Maintain Balance Bill-wise: Set to Yes or No based on your requirement (generally for
groups where transactions are tracked on a bill-wise basis).
4. Group Type: Specify the group type (e.g., Assets, Liabilities, Income, Expenses).

Step 5: Save the Group

 Press Ctrl + A to save the newly created group.

2. Alteration of Accounting Groups

Step 1: Open Tally Prime

 Launch Tally Prime and go to the Gateway of Tally.

Step 2: Navigate to the Group Alteration Menu

1. Go to Accounts and then Groups.

2. Select Alter (press Alt + A).
Step 3: Select the Group to Alter

 A list of existing groups will be displayed. Select the group you want to alter by using the
arrow keys or typing the name of the group.

Step 4: Make Changes

 Alter the required fields like Group Name, Under, or other relevant details as needed.

Step 5: Save Changes

 After making the necessary alterations, press Ctrl + A to save the changes.

3. Deletion of Accounting Groups

Step 1: Open Tally Prime

 Launch Tally Prime and go to the Gateway of Tally.

Step 2: Navigate to the Group Deletion Menu

1. Go to Accounts and then Groups.

2. Select Alter (press Alt + A).

Step 3: Select the Group to Delete

 Choose the group you want to delete from the list of existing groups.

Step 4: Delete the Group

1. Press Alt + D to delete the selected group.

2. A confirmation message will appear asking if you are sure you want to delete the group.

Step 5: Confirm Deletion

 Press Y (Yes) to confirm the deletion of the group.

 Press N (No) if you do not wish to delete it.

Additional Info.

 Group Hierarchy: Understand the hierarchy of groups when creating secondary groups.
Secondary groups must fall under a primary group.
 Backups: Always maintain backups of your data before making significant changes like
deletions.
 Impact of Deletion: Deleting a group will remove all ledgers associated with that group,
so ensure that it is not being used in transactions.
22. Final Accounts with Adjustments: Creation and Deletion of Ledgers in Tally
Prime

1. Creation of Ledgers

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Navigate to the Gateway of Tally

 Ensure you are at the Gateway of Tally.

Step 3: Access the Ledger Creation Menu

1. Select Accounts.
2. Choose Ledgers.
3. Press Alt + C or select Create to create a new ledger.

Step 4: Enter Ledger Details

 Fill in the necessary fields:

o Ledger Name: Enter the name of the ledger (e.g., Salaries, Rent Expense, Sales
Revenue, Outstanding Expenses, etc.).
o Under: Select the appropriate group under which this ledger will fall. For
example:
 For Expense accounts, select Indirect Expenses or specific expense
groups.
 For Income accounts, select Indirect Income or specific income groups.
 For adjustment accounts, use appropriate categories like Current
Liabilities or Current Assets.
o Inventory: If the ledger is related to inventory (e.g., goods, raw materials),
specify that accordingly.
o Maintain balance bill-wise: Set to Yes if applicable (especially for outstanding
or payable accounts).

Step 5: Save the Ledger

 Press Ctrl + A to save the newly created ledger.

2. Deleting Ledgers

Step 1: Open Tally Prime

 Launch Tally Prime and go to the Gateway of Tally.

Step 2: Navigate to the Ledger Deletion Menu

1. Select Accounts.
2. Choose Ledgers.
3. Select Alter (press Alt + A).

Step 3: Select the Ledger to Delete

 A list of existing ledgers will be displayed. Use the arrow keys to navigate or type the
name of the ledger you want to delete.

Step 4: Delete the Ledger

1. Press Alt + D to delete the selected ledger.

2. A confirmation message will appear asking if you are sure you want to delete the ledger.

Step 5: Confirm Deletion

 Press Y (Yes) to confirm the deletion of the ledger.

 Press N (No) if you do not wish to delete it.

3. Adjustments in Final Accounts

When preparing final accounts, adjustments may be necessary. Here’s how to create specific
adjustment ledgers:

Common Adjustment Ledgers

1. Outstanding Expenses: For expenses that have been incurred but not yet paid (e.g.,
outstanding rent, wages).
o Create a ledger named Outstanding Rent under Current Liabilities.
2. Prepaid Expenses: For expenses paid in advance (e.g., insurance).
o Create a ledger named Prepaid Insurance under Current Assets.
3. Accrued Income: For income earned but not received (e.g., interest receivable).
o Create a ledger named Interest Receivable under Current Assets.
4. Provision for Taxation: For setting aside amounts for tax liabilities.
o Create a ledger named Provision for Tax under Current Liabilities.
Final Accounts Preparation

Once the necessary ledgers are created and adjusted:

1. Go to Reports in Tally Prime.

2. Select Final Accounts to generate the Profit & Loss Account and Balance Sheet.
3. Review adjustments reflected in the financial statements.

Important Notes:

 Backup: Always back up your company data before deleting ledgers to prevent
accidental loss.
 Impact of Deletion: Deleting a ledger may affect any transactions or financial statements
related to that ledger.
 Review Adjustments: Regularly review the adjustments in the final accounts to ensure
accuracy and compliance with accounting standards.
23. Voucher Entry Problems in Double Entry Mode in Tally Prime

Overview of Voucher Entries in Tally Prime

In Tally Prime, vouchers are used to record various types of transactions. Each voucher entry
involves a debit and a credit, maintaining the double-entry accounting system.

Types of Vouchers

1. Payment Voucher: Used for recording payments made.

2. Receipt Voucher: Used for recording money received.
3. Journal Voucher: Used for adjustments and non-cash transactions.
4. Sales Voucher: Used for recording sales transactions.
5. Purchase Voucher: Used for recording purchase transactions.
6. Contra Voucher: Used for transferring cash between cash and bank accounts.

Step-by-Step Procedure for Voucher Entry

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Navigate to the Gateway of Tally

 Ensure you are at the Gateway of Tally.

Step 3: Choose the Voucher Type

1. Go to Accounting Vouchers.
2. Select the type of voucher you want to create by pressing the corresponding key:
o F4 for Payment Voucher
o F6 for Receipt Voucher
o F7 for Journal Voucher
o F8 for Sales Voucher
o F9 for Purchase Voucher
o F5 for Contra Voucher

Step 4: Enter Voucher Details

1. Date: Enter the date of the transaction.

2. Party Name: If applicable, select the party involved by typing the name or using the
search option.
3. Dr/Cr: Specify whether you are debiting or crediting accounts.
 o For example, in a Payment Voucher, if you are paying cash, you will debit the
Expenses account and credit the Cash account.
4. Amount: Enter the amount for the transaction.
5. Narration: Optionally, you can add a narration to describe the transaction.

Step 5: Save the Voucher

 Press Ctrl + A to save the voucher entry.

Common Problems and Solutions in Voucher Entry

Problem 1: Error in Account Selection

 Issue: An incorrect ledger account is selected.

 Solution:
o Double-check the selected ledger account.
o Use the search function (press Alt + S) to find the correct ledger.
o Ensure that the ledger is created and belongs to the correct group.

Problem 2: Incorrect Amount Entry

 Issue: The amount entered is incorrect.

 Solution:
o Navigate back to the voucher using Alt + E (to edit) and correct the amount.
o Ensure the total debits equal total credits to maintain the double-entry principle.

Problem 3: Voucher Not Saving

 Issue: The voucher fails to save.

 Solution:
o Check for any missing mandatory fields (e.g., date, party name, amount).
o Ensure that the debit and credit entries are balanced.

Problem 4: Transaction Date Incorrect

 Issue: The date of the transaction is wrong.

 Solution:
o Edit the voucher by navigating to the transaction using the Accounting Vouchers
option and correcting the date.
o Remember to check the period for which the voucher is being entered, ensuring it
falls within the current financial year.

Problem 5: Using Wrong Voucher Type

  Issue: An inappropriate voucher type is selected for the transaction.
 Solution:
o Identify the correct type of transaction (e.g., use a Payment Voucher for
expenses, not a Receipt Voucher).
o Exit and select the appropriate voucher type to re-enter the transaction.

Important Tips

 Regular Review: Regularly review your voucher entries to ensure accuracy and
completeness.
 Backup: Always back up your company data to prevent data loss during voucher entries.
 Use Narrations: Always use narrations to explain the purpose of each transaction for
better clarity in financial statements.
24.Voucher Entry Problems in Single Entry Mode in Tally Prime

Overview of Single Entry Mode in Tally Prime

Single entry mode is primarily used by small businesses and sole proprietors who do not need the
full double-entry system. In this mode, Tally allows users to record only cash or bank
transactions without maintaining a complete double-entry system.

Types of Vouchers

In single entry mode, the following vouchers can typically be created:

1. Payment Voucher: For cash payments made.

2. Receipt Voucher: For cash received.
3. Contra Voucher: For cash and bank transfers.

Step-by-Step Procedure for Voucher Entry in Single Entry Mode

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Navigate to the Gateway of Tally

 Ensure you are at the Gateway of Tally.

Step 3: Select Single Entry Mode

 By default, Tally may operate in double-entry mode. To switch to single entry mode:
1. Go to Company in the Gateway of Tally.
2. Select Alter.
3. Change the Accounting Method to Single Entry.

Step 4: Choose the Voucher Type

1. Go to Accounting Vouchers.
2. Select the type of voucher you want to create:
o F4 for Payment Voucher
o F6 for Receipt Voucher
o F5 for Contra Voucher

Step 5: Enter Voucher Details

 1. Date: Enter the date of the transaction.
2. Particulars: Specify the transaction details.
o For a Payment Voucher, enter the amount being paid and the account from
which the payment is made.
o For a Receipt Voucher, enter the amount received and the account into which the
receipt is made.
3. Amount: Enter the total amount of the transaction.
4. Narration: Optionally, add a narration to describe the transaction.

Step 6: Save the Voucher

 Press Ctrl + A to save the voucher entry.

Common Problems and Solutions in Voucher Entry

Problem 1: Incorrect Ledger Selection

 Issue: An incorrect ledger account is selected or not found.

 Solution:
o Ensure the ledger exists and is created under the appropriate group.
o Use the search option (press Alt + S) to find the correct ledger.

Problem 2: Missing Transaction Amount

 Issue: The amount field is left blank or entered incorrectly.

 Solution:
o Ensure to enter a valid amount for the transaction.
o Double-check for typos and correct any mistakes before saving.

Problem 3: Transaction Date Incorrect

 Issue: The transaction date entered is wrong.

 Solution:
o Edit the voucher by navigating to the transaction and correcting the date.
o Make sure the date falls within the financial year being managed.

Problem 4: Voucher Not Saving

 Issue: The voucher fails to save after entry.

 Solution:
o Check for any missing mandatory fields (e.g., date, amount, particulars).
o Ensure that Tally is in the correct mode (Single Entry) for the voucher type being
created.
Problem 5: Misclassification of Transactions

 Issue: Transactions are categorized incorrectly (e.g., income treated as expense).

 Solution:
o Review the accounts and ensure the correct ledger is being used for each type of
transaction.
o Re-enter the transaction with the correct classification.

Important Tips

 Regular Review: Periodically review your vouchers for accuracy and compliance with
accounting principles.
 Backup Data: Always back up your company data before making significant entries or
changes.
 Use Clear Narrations: Always provide clear narrations for each transaction to facilitate
better understanding and tracking.
25.Voucher Entries Using Cost Centre and Cost Category in Tally Prime

Overview of Cost Centres and Cost Categories

Cost Centres: Cost centres in Tally Prime are used to track and analyze the costs associated with
different departments or segments of your business. Each cost centre can represent a specific
location, department, project, or any other operational unit.

Cost Categories: Cost categories are used to classify costs into specific types or groups, making
it easier to analyze overall expenses and profitability by category.

Step-by-Step Procedure for Voucher Entry with Cost Centre and Cost Category

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Navigate to the Gateway of Tally

 Ensure you are at the Gateway of Tally.

Step 3: Create Cost Centres

1. Go to Masters > Cost Centres.

2. Select Create.
3. Enter the Name of the cost centre (e.g., Sales, Production).
4. Fill in any additional details like the parent cost centre if applicable.
5. Press Ctrl + A to save the cost centre.

Step 4: Create Cost Categories

1. Go to Masters > Cost Categories.

2. Select Create.
3. Enter the Name of the cost category (e.g., Direct Costs, Indirect Costs).
4. Fill in any additional details as required.
5. Press Ctrl + A to save the cost category.

Step 5: Choose the Voucher Type

1. Go to Accounting Vouchers.
2. Select the type of voucher you want to create (e.g., Payment, Receipt, Journal).

Step 6: Enter Voucher Details

 1. Date: Enter the date of the transaction.
2. Particulars: Specify the details of the transaction (debit and credit accounts).
3. Amount: Enter the amount for the transaction.
4. Cost Centre:
o In the voucher entry screen, after entering the account, select the cost centre
associated with that account.
o Use the Cost Centre field to specify which cost centre the transaction should be
allocated to.
5. Cost Category:
o If you want to allocate the transaction to a cost category, specify it in the
appropriate field, usually found near the cost centre field.
6. Narration: Optionally, provide a narration for clarity on the transaction.

Step 7: Save the Voucher

 Press Ctrl + A to save the voucher entry.

Common Problems and Solutions in Voucher Entry with Cost Centres and Cost
Categories

Problem 1: Cost Centre Not Found

 Issue: The required cost centre is not available in the list.

 Solution:
o Ensure the cost centre has been created in the Masters.
o Double-check for any typos in the name of the cost centre you are trying to select.

Problem 2: Cost Category Not Available

 Issue: The cost category is missing during voucher entry.

 Solution:
o Verify that the cost category has been created and saved correctly in the Masters.
o Check if you are in the correct company where the cost category is created.

Problem 3: Wrong Allocation of Cost Centre

 Issue: The cost is allocated to the wrong cost centre.

 Solution:
o Go back and edit the voucher by navigating to the transaction.
o Select the correct cost centre before saving the voucher.

Problem 4: Voucher Entry Not Saving

 Issue: The voucher fails to save after entry.

  Solution:
o Ensure that all mandatory fields (date, particulars, amount, cost centre) are filled
in.
o Check for balance in debit and credit amounts.

Problem 5: Misclassified Transactions

 Issue: Transactions are categorized incorrectly (e.g., direct costs entered as indirect
costs).
 Solution:
o Review the entries and correct the classification.
o Re-enter the transaction if necessary with the appropriate cost category.

Important Tips

 Use Consistent Naming: Ensure consistent naming conventions for cost centres and
categories to avoid confusion.
 Regular Monitoring: Regularly review your cost centre and category reports for better
financial management and analysis.
 Backup Data: Always backup your company data before making significant changes to
cost centres or categories.
 26. Budget Preparation and Variance Reporting in Tally Prime

Overview of Budgets and Variances in Tally Prime

Budgets: Budgets in Tally Prime help businesses plan and control expenses and revenues by
setting target values for specific ledger accounts or cost centers.

Variance Reporting: Variance reports allow comparison between the actual and budgeted
amounts, helping businesses analyze any deviations and make informed decisions.

Step-by-Step Procedure for Budget Preparation

Step 1: Open Tally Prime

 Launch Tally Prime on your computer.

Step 2: Enable Budgets

1. Go to Gateway of Tally > F11: Features > Accounting Features.

2. Enable the option Budgets and Controls by setting it to Yes.
3. Press Ctrl + A to save the configuration.

Step 3: Create a Budget

1. Go to Gateway of Tally > Accounts Info > Budgets > Create.

2. Fill in the following details:
o Name: Enter the name of the budget (e.g., Annual Budget 2024).
o Under: Select Primary if this is a primary budget or select a specific group if it’s
a sub-budget.
o Period: Enter the start and end dates for the budget (e.g., 01-Apr-2024 to 31-Mar-
2025).
3. Set/Alter Budgets of Groups/Ledgers/Cost Centres:
o Groups: Specify budgeted amounts for different groups like Direct Expenses,
Indirect Expenses, Sales, etc.
o Ledgers: Set specific budgeted values for individual ledgers.
o Cost Centres: Allocate budget amounts to specific cost centres if you are tracking
budgets at a cost-centre level.
4. Once done, press Ctrl + A to save the budget.
Step-by-Step Procedure for Viewing and Reporting Variances

Step 1: Access Variance Analysis

1. Go to Gateway of Tally > Display More Reports > Statement of Accounts > Budgets
& Variances.
2. Select the specific Budget Variance report you wish to view.

Step 2: View Budget Variance Reports

1. In the Budget Variance report, Tally Prime will display a comparison between actual
and budgeted amounts for each group or ledger.
2. The report shows:
o Budgeted Amount: The amount set in the budget.
o Actual Amount: The amount incurred or earned during the period.
o Variance: The difference between actual and budgeted values.
o Percentage Variance: A percentage calculation showing the extent of the
variance.

Step 3: Analyzing the Variance Report

 Use the variance report to identify over-budget and under-budget items.

 Look for significant variances that might need further analysis or adjustment in
budgeting.

Step 4: Exporting or Printing the Variance Report (Optional)

 Press Alt + E to export or Alt + P to print the variance report for records or sharing.

Common Problems and Solutions in Budgeting and Variance Reporting

Problem 1: Budget Not Saving

 Issue: Budget fails to save or does not appear in the list.

 Solution:
o Check if the budget feature is enabled in F11: Features > Accounting Features.
o Ensure that all fields are filled out correctly and save the budget with Ctrl + A.

Problem 2: Variance Report Shows Zero or Incorrect Variance

 Issue: Variances are not showing correctly or appear as zero.

 Solution:
o Verify that the budgeted figures and actual figures fall within the same period.
o Make sure the transactions have been entered in the correct ledger or group.
Problem 3: Cost Centre Budget Not Reflecting

 Issue: Budgets assigned to cost centres are not displaying in the variance report.
 Solution:
o Ensure that the cost centres are correctly linked to the ledger accounts.
o Verify that cost centre budgets are enabled in Gateway of Tally > F11: Features
> Cost Centres.

Problem 4: Error in Exporting or Printing Variance Report

 Issue: Unable to export or print the variance report.

 Solution:
o Ensure that Tally has permissions to access the folder where you are trying to
export.
o Check printer settings or update them if necessary.

Important Tips

 Review Budgets Regularly: Regular review and updates of budgets will improve
accuracy in variance reporting.
 Focus on Significant Variances: Large variances may indicate areas that need
adjustment, whether in spending, budgeting, or operational efficiency.
 Utilize Cost Centres for Granular Tracking: If managing multiple departments or
projects, cost centres can help in tracking budgets and variances at a more detailed level.
 27.Payroll Preparation in Tally Prime

Overview of Payroll in Tally Prime

Tally Prime offers a Payroll module to streamline employee salary calculations, deductions, and
allowances. It enables users to manage payroll processing and generate statutory reports like PF,
ESI, and PT.

Step-by-Step Procedure for Payroll Preparation

Step 1: Enable Payroll Feature

1. Open Tally Prime and go to the Gateway of Tally.

2. Navigate to F11: Features > Accounting Features.
3. Enable Payroll and Employee Cost Tracking by setting both to Yes.
4. Press Ctrl + A to save.

Step 2: Set Up Payroll Masters

2.1 Define Pay Heads

1. Go to Gateway of Tally > Masters > Payroll Masters > Pay Heads > Create.
2. Fill in the following details:
o Name: Enter the name of the pay head (e.g., Basic Salary, HRA, PF, etc.).
o Income Type: Select whether it’s an earning for the employee or a deduction.
o Calculation Type: Choose the calculation method (e.g., As Computed Value, On
Attendance, On Production).
o Under: Choose the relevant group (e.g., Indirect Expenses for salaries).
3. Define additional parameters, like calculation basis and value type.
4. Press Ctrl + A to save each pay head.

2.2 Create Employee Groups (Optional)

1. Go to Payroll Masters > Employee Groups > Create.

2. Enter the Name of the group (e.g., Sales, Marketing).
3. Choose the Under group, which can be Primary or any other group.
4. Save by pressing Ctrl + A.

2.3 Set Up Employee Masters

1. Go to Payroll Masters > Employees > Create.

 2. Fill in employee details such as Name, Group, Date of Joining, and Designation.
3. Enter additional information like bank details if required.
4. Save the employee information with Ctrl + A.

Step 3: Configure Salary Details for Employees

1. Go to Payroll Masters > Salary Details > Create.

2. Select the Employee Name.
3. Enter the Effective Date from which these salary details apply.
4. Add all applicable Pay Heads and specify amounts or calculation methods.
5. Save by pressing Ctrl + A.

Step 4: Processing Payroll Vouchers

1. Go to Accounting Vouchers.
2. Select Payroll Voucher from the list of voucher types.
3. Enter the Date of payroll processing.
4. Select the relevant Employee and Pay Heads with the respective amounts, based on the salary
configuration.
5. Ensure all earnings and deductions are added correctly for each employee.
6. Enter Narration if required, then save the payroll voucher by pressing Ctrl + A.

Step 5: Generate Payroll Reports

1. Go to Gateway of Tally > Display More Reports > Payroll Reports.

2. Select the desired report, such as Payroll Statement or Pay Sheet, to review employee-wise
details.
3. For statutory compliance, view specific reports like PF, ESI, or Professional Tax statements.

Common Problems and Solutions in Payroll Processing

Problem 1: Incorrect Pay Head Calculations

 Issue: Pay head amounts appear incorrectly in payroll vouchers.

 Solution: Verify the calculation type set in each pay head’s configuration. Check if the amount
and calculation basis are accurate.

Problem 2: Missing Pay Head in Payroll Voucher

 Issue: A pay head is not available for selection during payroll entry.
  Solution: Ensure that the pay head is defined under Earnings or Deductions as required.
Confirm that it is linked in the employee’s salary details.

Problem 3: Payroll Voucher Not Saving

 Issue: Payroll voucher cannot be saved.

 Solution: Ensure all mandatory fields, including employee details, pay heads, and amounts, are
filled in. If any fields are left empty, Tally may not allow saving.

Problem 4: Discrepancies in Statutory Reports

 Issue: Statutory report values (PF, ESI) are incorrect.

 Solution: Verify statutory settings under each pay head and ensure compliance with local
regulations. Check for any manual errors in salary details affecting statutory calculations.

Important Tips

 Review Pay Heads Regularly: Update pay heads to reflect any changes in company policy, tax
laws, or employee benefits.
 Backup Payroll Data: Regularly back up your company data to prevent data loss.
 Statutory Compliance: Ensure all statutory deductions are updated for compliance, especially if
tax rules change.
 28.Accounting Vouchers with Stock Items in Tally Prime

Overview of Using Stock Items in Accounting Vouchers

In Tally Prime, stock items can be linked with accounting vouchers such as Sales, Purchase,
Receipt, and Payment to track inventory movement alongside financial transactions. This
approach helps in accurate inventory and cost management.

Step-by-Step Procedure

Step 1: Enable Inventory Features

1. Open Tally Prime and go to the Gateway of Tally.

2. Press F11 > Features > Inventory Features.
3. Enable Integrate Accounts with Inventory by setting it to Yes.
4. Press Ctrl + A to save.

Step 2: Create Stock Items

1. Go to Gateway of Tally > Inventory > Create > Stock Items.

2. Enter the Name of the stock item (e.g., Stationery, Electronics).
3. Choose the Unit of Measure (e.g., pieces, kg).
4. Select the Stock Group if relevant, or choose Primary for standalone items.
5. Enter the Opening Balance if there is already a stock in hand.
6. Press Ctrl + A to save the stock item.

Step 3: Create Ledger Accounts for Sales and Purchase

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

2. Create Sales Account and Purchase Account under the respective groups (Sales and
Purchases).
3. Configure tax ledgers if required (e.g., GST, VAT).
4. Press Ctrl + A to save each ledger.

Step 4: Record Transactions with Stock Items in Accounting Vouchers

4.1 Sales Voucher with Stock Items

1. Go to Gateway of Tally > Vouchers > Sales.

2. Select the Sales Ledger.
3. Choose the Customer ledger under Party's A/c Name.
4. Under Particulars, select the Stock Item you want to sell.
5. Enter the Quantity and Rate; Tally will calculate the amount.
6. Add additional stock items if needed.
7. Enter Narration if required.
8. Press Ctrl + A to save the sales voucher.

4.2 Purchase Voucher with Stock Items

1. Go to Vouchers > Purchase.

2. Select the Purchase Ledger.
3. Choose the Supplier ledger under Party's A/c Name.
4. Under Particulars, select the Stock Item being purchased.
5. Enter the Quantity and Rate.
6. Add additional items if needed.
7. Enter Narration if required.
8. Press Ctrl + A to save the purchase voucher.

4.3 Receipt and Payment Vouchers with Stock Items (Optional)

1. Go to Vouchers > Receipt or Payment.

2. Select the Ledger for the bank or cash account.
3. Under Particulars, select the stock item involved in the transaction, if applicable.
4. Enter any relevant amount and details.
5. Press Ctrl + A to save.

Step 5: View and Verify Stock Reports

1. Go to Gateway of Tally > Stock Summary to view a summary of all stock items and
their balances.
2. Profit and Loss A/c and Balance Sheet will also reflect the stock-related transactions in
terms of inventory cost and revenue.

Common Issues and Solutions

Issue 1: Stock Items Not Showing in Voucher

  Solution: Ensure the Inventory Features are enabled (Step 1). Confirm the stock item
was created and available.

Issue 2: Incorrect Stock Balances in Reports

 Solution: Verify the quantities and rates entered for each item in the vouchers, and
ensure correct units of measure.

Issue 3: Transaction Amount Mismatch in Ledger

 Solution: Check the Unit and Rate for each stock item to ensure accurate calculations.

Issue 4: Item Category Not Available in Report

 Solution: Check if the stock item was created under the correct group or category in the
Stock Masters.

Important Tips

 Consistent Stock Entry: Always enter stock items consistently with correct quantities
and rates.
 Backup Data: Backup company data regularly, especially before making significant
changes to inventory.
 Stock Verification: Regularly verify stock balances in Stock Summary and Godown
Summary if multiple storage locations are used.
 29. Order Processing and Inventory Vouchers in Tally Prime

Overview of Order Processing and Inventory Vouchers

Order processing in Tally Prime involves managing Sales Orders and Purchase Orders that
record order details before invoicing. Inventory vouchers track stock movement such as Goods
Receipt, Stock Transfer, and Delivery Note. This system ensures accuracy in stock levels and
timely order fulfillment.

Step-by-Step Procedure

Step 1: Enable Order Processing and Inventory Features

1. Open Tally Prime and go to Gateway of Tally.

2. Press F11: Features > Inventory Features.
3. Enable Sales Order Processing, Purchase Order Processing, and Allow Tracking Numbers by
setting them to Yes.
4. Enable Use Tracking Number for Stock Transfers for detailed tracking.
5. Press Ctrl + A to save.

Step 2: Create Required Masters (Stock Items, Ledgers, Godowns)

1. Stock Items: Go to Inventory Info > Stock Items > Create to set up items with appropriate Unit
of Measure and Rate.
2. Ledgers: Create Sales, Purchase, Supplier, and Customer ledgers under Accounts Info > Ledgers
> Create.
3. Godowns (if applicable): Go to Inventory Info > Godowns > Create to set up storage locations.

Step 3: Record Purchase Order

1. Go to Gateway of Tally > Vouchers > Purchase Order.

2. Under Party’s A/c Name, select the Supplier ledger.
3. Under Order Details:
o Choose Stock Item.
o Enter Quantity and Rate.
4. Add additional items as needed.
5. Enter Narration if required, then press Ctrl + A to save.
Note: This creates an open Purchase Order until the stock is received.

Step 4: Record Sales Order

1. Go to Vouchers > Sales Order.

2. Select the Customer ledger under Party’s A/c Name.
3. Under Order Details:
o Choose Stock Item.
o Enter Quantity and Rate.
4. Add additional items as needed.
5. Enter Narration and press Ctrl + A to save.

Note: This creates an open Sales Order until the order is fulfilled.

Step 5: Convert Orders into Inventory Vouchers

5.1 Purchase Order to Receipt Note

1. Go to Vouchers > Receipt Note (GRN).

2. Under Order Details, select Purchase Order from the list.
3. Verify Quantity received, and Rate. Adjust if needed.
4. Save the receipt note with Ctrl + A.

5.2 Sales Order to Delivery Note

1. Go to Vouchers > Delivery Note.

2. Under Order Details, select the Sales Order to fulfill.
3. Verify Quantity and Rate.
4. Press Ctrl + A to save.

Note: Delivery Note and Receipt Note act as intermediary steps for tracking items before final
invoicing.

Step 6: Generate Invoices from Orders

6.1 Create Purchase Invoice from Receipt Note

1. Go to Vouchers > Purchase.

2. Select Supplier under Party’s A/c Name.
3. Choose Purchase Order or Receipt Note to convert into an invoice.
 4. Confirm the stock details and press Ctrl + A to save.

6.2 Create Sales Invoice from Delivery Note

1. Go to Vouchers > Sales.

2. Select Customer under Party’s A/c Name.
3. Choose Sales Order or Delivery Note to convert.
4. Confirm details and save with Ctrl + A.

Step 7: View Inventory Reports

1. Go to Gateway of Tally > Display More Reports > Inventory Books to view reports like:
o Stock Summary for stock levels.
o Order Book for open and closed orders.
o Movement Analysis to track stock movement by item, location, or party.

Common Problems and Solutions

Problem 1: Order Not Available in Receipt or Delivery Note

 Solution: Ensure the order is saved and not previously converted to an inventory voucher.

Problem 2: Incorrect Inventory Balance

 Solution: Verify the quantities entered for each order and voucher to ensure consistency.

Problem 3: Invoice Mismatch with Order

 Solution: Check if the rates and quantities in the order and subsequent vouchers match. Tally
Prime allows modification in case of discrepancies.

Problem 4: Stock Item Not Showing in Order Entry

 Solution: Confirm the stock item is created and available in inventory and ensure proper settings
in Inventory Features.

Important Tips

 Track Orders Regularly: Use the Order Book to keep track of open and closed orders.
 Review Stock Movement: Regularly review Movement Analysis reports to monitor inventory
inflows and outflows.
 Update Stock Levels: Reconcile physical stock levels with system stock to maintain accuracy.
 30.Generating Accounting Books and Reports in Tally Prime

Step-by-Step Procedure

Step 1: Access the Display Menu

1. Open Tally Prime and select the company for which you want to view reports.
2. From the Gateway of Tally, go to Display More Reports. This section contains all the
available accounting books and financial reports.

Step 2: Generate Basic Accounting Books

1. Ledger Report
o Go to Display More Reports > Account Books > Ledger.
o Select the specific ledger you want to view (e.g., Cash or Bank Account).
o Tally Prime will display all transactions for that ledger. You can filter by period
or customize the view if needed.
2. Cash/Bank Book
o Go to Display More Reports > Account Books > Cash/Bank Book.
o Choose the Cash or Bank account to see daily entries.
o Use F12: Configuration to change view options like showing only certain dates
or summaries.
3. Sales Register
o Navigate to Display More Reports > Account Books > Sales Register.
o Select the period for which you want the report.
o This report provides a summary of all sales invoices and their details.
4. Purchase Register
o Go to Display More Reports > Account Books > Purchase Register.
o Choose the desired period for viewing all purchase transactions.
o This report includes details of all purchases, vendor information, and amounts.

Step 3: Generate Financial Statements

1. Profit & Loss Account

o Go to Gateway of Tally > Display More Reports > Financial Statements >
Profit & Loss A/c.
o Select the reporting period to view net income or loss for that period.
 o F12: Configuration allows you to add details such as expenses, incomes, and
percentage analysis.
2. Balance Sheet
o Go to Gateway of Tally > Display More Reports > Financial Statements >
Balance Sheet.
o Tally will show all assets and liabilities, giving a snapshot of financial health.
o You can configure the view to show detailed assets or liabilities with F12:
Configuration.
3. Trial Balance
o Navigate to Display More Reports > Trial Balance.
o Set the date range for which you want the trial balance.
o This report shows the balances of all ledgers, helping you ensure accuracy in the
books.

Step 4: View and Configure Inventory Reports

1. Stock Summary
o Go to Display More Reports > Inventory Books > Stock Summary.
o This report provides an overview of stock levels, item-wise value, and quantities.
o Use F12: Configuration to include additional details like opening balance,
closing balance, and rate.
2. Movement Analysis
o Navigate to Display More Reports > Inventory Books > Movement Analysis.
o Choose the type of analysis, such as Stock Item Analysis or Party Analysis.
o This report shows item movement, helping monitor stock inflow and outflow for a
specified period.

Step 5: Generate Receivable and Payable Reports

1. Outstanding Reports
o Go to Gateway of Tally > Display More Reports > Outstanding Reports.
o Choose between Receivables (for customers) and Payables (for suppliers).
o This report shows amounts due, including overdue amounts and aging analysis.
2. Bills Receivable/Payable
o Navigate to Display More Reports > Statements of Accounts > Outstanding >
Bills Receivable/Bills Payable.
o This report provides details of each bill, due dates, and party information, helping
with cash flow planning.

Step 6: Export Reports (Optional)

 1. Export Reports to Excel or PDF
o Open the report you wish to export.
o Press Alt + E (Export) to open the export menu.
o Choose the format (Excel, PDF, or HTML) and file destination, and set any
specific formatting options.
o Press Enter to complete the export process.

Tips for Effective Report Generation

 Regular Updates: Make sure all transactions are updated in Tally to generate accurate
reports.
 Custom Periods: Use Tally’s date configuration to view reports for custom periods, like
quarterly or annually.
 F12 Configuration: Customize each report with F12 to display specific data, making
analysis easier.
 Aging Analysis: Use aging reports to prioritize collections from overdue accounts,
improving cash flow management.
 31.Generating Inventory Books and Reports in Tally Prime

Step-by-Step Procedure

Step 1: Access Inventory Reports

1. Open Tally Prime and select the relevant company.

2. From the Gateway of Tally, go to Display More Reports and then Inventory Books to
access various inventory-related reports.

Step 2: Generate Stock Summary

1. Stock Summary
o Navigate to Display More Reports > Inventory Books > Stock Summary.
o Select the reporting period (e.g., weekly, monthly, or custom).
o The Stock Summary displays information such as opening balance,
inward/outward quantity, rate, and closing stock for each item.
o Press F12: Configuration to customize the report, enabling or disabling options
such as rate, value, and batches.

Step 3: Movement Analysis

1. Stock Item Analysis

o Go to Display More Reports > Inventory Books > Movement Analysis >
Stock Item Analysis.
o Choose the stock item you want to analyze and the period.
o This report shows the item’s total inflow, outflow, net movement, and closing
balance, helping analyze stock turnover.
2. Party-wise Movement Analysis
o Navigate to Display More Reports > Inventory Books > Movement Analysis >
Party Analysis.
o Select the party (customer or vendor) and the period for analysis.
o This report provides a breakdown of all inventory transactions with the selected
party, allowing you to monitor sales and purchases effectively.

Step 4: Stock Valuation Reports

 1. Godown Summary
o Go to Display More Reports > Inventory Books > Godown Summary.
o Select the desired godown/location and reporting period.
o The report shows stock levels in each godown, including quantities and values,
helping you manage multi-location inventory.
2. Batch Summary (if batch-wise details are enabled)
o Navigate to Display More Reports > Inventory Books > Batch Summary.
o Choose the stock item and period to view batch-wise stock details, including
expiry dates, quantities, and value.
o This is useful for tracking inventory that has expiration dates, such as perishable
items or pharmaceuticals.

Step 5: Generate Stock Transfer Reports

1. Stock Transfer Register

o Go to Display More Reports > Inventory Books > Transfer Register.
o Choose the reporting period to view all stock transfers between godowns.
o This report shows detailed information on internal transfers, including quantities
and the receiving and issuing godowns.

Step 6: Orders and Reorder Status Reports

1. Order Book (Sales Orders)

o Navigate to Display More Reports > Inventory Books > Order Books > Sales
Order Book.
o Select the period to see all sales orders and their statuses, including pending,
partially delivered, and completed orders.
2. Reorder Status
o Go to Display More Reports > Inventory Books > Reorder Status.
o Set reorder levels for stock items in Inventory Info > Stock Items > Reorder
Levels.
o This report will alert you if stock items fall below their reorder levels, ensuring
you maintain adequate inventory.

Step 7: Stock Aging Analysis

1. Aging Analysis
o Go to Display More Reports > Inventory Books > Aging Analysis.
o Set the aging periods (e.g., 0-30 days, 31-60 days) and choose the stock items to
analyze.
 o This report shows how long items have been in stock, helping to identify slow-
moving items that may require discounts or clearance.

Step 8: Generate Stock Profitability Report

1. Stock Profitability
o Navigate to Display More Reports > Inventory Books > Stock Profitability.
o Choose the stock item and period for which to view profitability details.
o This report provides an analysis of the profit made on specific stock items, based
on their selling price and cost.

Step 9: Exporting Inventory Reports (Optional)

1. Export to Excel or PDF

o Open the inventory report you wish to export.
o Press Alt + E to access the export menu.
o Select the format (Excel, PDF, HTML), specify the destination folder, and set any
custom options if necessary.
o Press Enter to export the report.

Tips for Effective Inventory Reporting

 Update Stock Regularly: Accurate inventory reports require timely and accurate data
entry of all stock transactions.
 Use Configurations: Customize reports using F12: Configuration to include only
relevant information, making analysis easier.
 Set Reorder Levels: Ensure reorder levels are set for essential items to maintain
optimum stock levels.
 Monitor Aging Reports: Regularly review aging analysis to manage slow-moving items
and reduce holding costs.
 32.Setting Up TDS, VAT, CST, and Excise in Tally Prime

These indirect taxes can be configured in Tally Prime for compliance and accurate accounting.
Each tax is handled individually, and here’s a step-by-step guide on setting them up and using
them.

1. TDS (Tax Deducted at Source)

Step 1: Enable TDS in Tally Prime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Set Enable TDS to Yes.

Step 2: Create TDS Ledgers

1. Go to Gateway of Tally > Create > Ledger.

2. Create separate ledgers for TDS (e.g., TDS on Contractors).
o Under Duties & Taxes.
o Set Type of Duty/Tax as TDS.
3. Enter the TDS Nature of Payment based on the transaction type (e.g., contract, rent).

Step 3: Record TDS in Voucher Entry

1. Go to Voucher > Payment/Journal.

2. Select the Expense Account (e.g., Contractor Charges).
3. Enter the TDS Ledger.
4. Enter the applicable TDS rate and complete the transaction.

2. VAT (Value Added Tax)

Step 1: Enable VAT in Tally Prime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Set Enable VAT to Yes.

Step 2: Set Up VAT Details

1. Go to Gateway of Tally > Create > VAT Classifications to define VAT rates.
2. Enter the relevant tax rates (e.g., 5%, 12.5%).

Step 3: Create VAT Ledgers

 1. Go to Gateway of Tally > Create > Ledger.
2. Create VAT Output and VAT Input ledgers under Duties & Taxes.
3. Set Type of Duty/Tax as VAT and select the correct VAT class.

Step 4: Record VAT in Sales and Purchase Entries

1. Go to Voucher > Sales/Purchase.

2. Enter details for goods sold or purchased, then apply VAT by selecting the appropriate
VAT ledger.

3. CST (Central Sales Tax)

Step 1: Enable CST in Tally Prime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Set Enable CST to Yes.

Step 2: Create CST Ledgers

1. Go to Gateway of Tally > Create > Ledger.

2. Create CST Output and CST Input ledgers under Duties & Taxes.
3. Select Type of Duty/Tax as CST and enter the CST percentage.

Step 3: Record CST in Sales and Purchase Entries

1. Go to Voucher > Sales/Purchase.

2. Enter item details and then apply CST by selecting the relevant CST ledger.
3. Enter customer details to complete the entry.

4. Excise Duty

Step 1: Enable Excise in Tally Prime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Set Enable Excise to Yes.

Step 2: Create Excise Ledgers

1. Go to Gateway of Tally > Create > Ledger.

2. Create separate ledgers for Excise Duty.
o Under Duties & Taxes.
o Set Type of Duty/Tax as Excise.
 3. Enter the applicable excise rate.

Step 3: Record Excise in Sales and Purchase Entries

1. Go to Voucher > Sales/Purchase.

2. Enter item details and then apply Excise by selecting the relevant Excise Duty ledger.
3. Complete the transaction by entering additional excise details if prompted.

Generating Reports for TDS, VAT, CST, and Excise

1. Go to Display More Reports > Statutory Reports.

2. Select TDS/VAT/CST/Excise to view compliance reports for each tax.
3. Choose the reporting period and configure reports as required for tax filing.
 33. Setting Up GST in Tally Prime

GST is a unified tax structure in India, and Tally Prime allows users to configure GST easily for
compliance and accurate accounting.

1. Enabling GST in Tally Prime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2. Set Enable Goods and Services Tax (GST) to Yes.
3. Enter your GST Registration Details (e.g., GSTIN, applicable state).
4. Enable other GST options as required, such as Set/alter GST details for specific ledgers.

2. Creating GST Ledgers

Create GST Tax Ledgers

1. Go to Gateway of Tally > Create > Ledger.

2. For CGST Ledger:
o Name: CGST
o Under: Duties & Taxes
o Type of Duty/Tax: GST
o Tax Type: Central Tax
3. For SGST Ledger:
o Name: SGST
o Under: Duties & Taxes
o Type of Duty/Tax: GST
o Tax Type: State Tax
4. For IGST Ledger:
o Name: IGST
o Under: Duties & Taxes
o Type of Duty/Tax: GST
o Tax Type: Integrated Tax

Create GST Sales and Purchase Ledgers

1. Sales Ledger:
o Go to Create > Ledger.
o Name: Sales @ GST
o Under: Sales Accounts
o Set Is GST Applicable to Applicable.
 oEnter Taxable for nature of transaction, depending on the nature of sales.
2. Purchase Ledger:
o Name: Purchase @ GST
o Under: Purchase Accounts
o Set Is GST Applicable to Applicable.
o Select the nature of transaction as Taxable Purchases.

3. Creating Stock Items with GST Rates

1. Go to Gateway of Tally > Create > Stock Item.

2. Enter Item Name and Group.
3. Under GST Details:
o Set GST Applicable to Yes.
o Set Taxability as Taxable.
o Specify the GST Rate (e.g., 18%).
4. Save the stock item.

4. Recording GST Transactions

Recording a Sales Invoice with GST

1. Go to Gateway of Tally > Voucher > Sales.

2. Select the Party Account and Sales Ledger.
3. Add Stock Items with quantities and rates.
4. Tally will automatically calculate CGST and SGST/IGST based on the tax setup.
5. Review and save the entry.

Recording a Purchase Invoice with GST

1. Go to Gateway of Tally > Voucher > Purchase.

2. Select the Party Account and Purchase Ledger.
3. Add Stock Items with quantities and rates.
4. Tally calculates CGST and SGST/IGST automatically.
5. Save the entry.

5. Generating GST Reports for Filing

1. Go to Display More Reports > Statutory Reports > GST.

2. Access various GST reports, including GSTR-1 (Sales), GSTR-2 (Purchases), and
GSTR-3B (Summary).
 3. Select the reporting period and export the reports for GST filing.

6. GST Adjustment Entries

Use adjustment vouchers for ITC (Input Tax Credit) or reverse charges.

1. Go to Gateway of Tally > Voucher > Journal.

2. Select GST Adjustment and adjust ITC or Reverse Charges as needed.
3. Save the entry.