GHAZIABAD BRANCH OF CIRC OF ICAI

PRESENTATION ON TALLY

SUBMITTED BY:- SUBMITTED TO:-

NAME:
REG. NO.:-
BATCH NO.:-
ICITSS-
Tally
 01 Introduction to Tally
Table of
Contents
02 Key Features of Tally

03 Versions of Tally

04 Starting with Tally

05 TallyVault Password

06 OPENING COMPANY

07 GATEWAY OF TALLY

08 ACCOUNTING MASTERS

09 CREATING MASTERS IN TALLY

10 INVENTORY MASTERS 19 TCS AND TDS

11 VOUCHERS 20 THANK YOU!

12 PAYROLL VOUCHERS

13 DIFFERENT ACCOUNTING VOUCHERS IN TALLY

PRIME

14 ACCOUNTS RECEIVABLE AND PAYABLE

15 BANKING FEATURES IN TALLY

16 FINANCIAL FEATURES

17 REPORTS

18
GST IN TALLY
 1

Introduction to Tally
Overview

● Tally is a powerful accounting software used by

businesses to manage financial transactions and
inventory.
● It simplifies complex accounting tasks and provides real-
time insights into business performance.
● With Tally, businesses can streamline their financial
operations and ensure compliance with tax regulations.
● Tally is user-friendly and scalable, making it suitable for
small startups to large enterprises.
 2

Key Features of Tally

Functionality

● Tally offers features like financial management, invoicing,

inventory management, payroll, and compliance
management tools.
● It enables businesses to generate reports, track
expenses, and monitor cash flow efficiently.
● Tally's customizable dashboard and data security features
make it a reliable choice for businesses of all sizes.
● The software's multi-currency support and bank
reconciliation capabilities streamline international
transactions.
 3

VERSIONS OF TALLY
• Tally 4.5 was the first version of Tally. It
was released in 1990.
• Tally 5.4 was the second version of Tally
released in 1996.
• Tally 6.3 was the third version of Tally
was released in 2001.
• Tally 7.2 was the next version of Tally
was released in 2005.
• The next version was Tally 9 released in
2006
• The next version of Tally ERP 9 released
in 2009.
• The latest version of Tally in Tally
 4

Startin
g with
Tally
prime
Creatin
ga
compan
y
• On launching Tally Prime, select Create Company.
• Provide the Company details.
• Set up financial year details and security options.
• Specify the Base Currency Information.
• Accept the Company Creation screen.
5

Entering company
details
 6

Tally Vault Password

● PRESS F12 FOR CONFIGURATION.
● CHANGE THE SETTING TO ‘YES’ FOR TALLYVAULT
PASSWORD.

• UNDER SECURITY > ENABLE

THE OPTION SET
TALLYVAULT PASSWORD TO
ENCRYPT COMPANY DATA
TO YES.
• ENTER TALLY VAULT
PASSWORD AND CONFIRM
TALLYVAULT PASSWORD
• PRESS ENTER.
7 OPENING COMPANY

• SELECT THE COMPANY YOU

INTEND TO WORK ON.

• ENTER TALLYVAULT PASSWORD.

• THE NEXT WINDOW THAT OPENS IS

CALLED GATEWAY OF TALLY.
8 GATEWAY OF TALLY
9 ACCOUNTING MASTERS
GROUP
GROUP ARE A COLLECTION OF LEDGERS OF THE SAME
NATURE.
• TO VIEW THE DEFAULT LIST OF GROUPS:-
FROM GATEWAY OF TALLY > CHART OF ACCOUNTS >
UNDER ACCOUNTING MASTERS > ENTER ON GROUP .
LEDGERS

LEDGERS IS AN ACCOUNT HEAD.

• TO VIEW LEDGERS :-
FROM GATEWAY OF TALLY > CHART OF ACCOUNTS > UNDER
ACCOUNTING MASTERS > ENTER ON LEDGERS >CLICK F5:
LEDGER VIEW.
10 CREATING MASTERS IN
TALLY
• FROM GATEWAY OF TALLY > UNDER MASTERS >
ENTER ON CREATE.
• CLICK ON THE SHOW MORE OPTION. THE LIST OF
MASTERS SCREEN APPEARS WITH ADDITIONAL
MASTERS ADDED IN THE ACCOUNTING MASTERS
AND INVENTORY MASTERS WITH STATUTORY
DETAILS.
• CLICK ON SHOW INACTIVE. THE SCREEN APPEARS
WITH THE LIST OF INACTIVE ACCOUNTING
MASTERS AND INVENTORY MASTERS WITH
STATUTORY DETAILS.

IN TALLY PRIME WE CAN CREATE

UNLIMITED MASTERS AT SAME
TIME AS SHOWN IN THE FIGURE.
 11 INVENTORY MASTERS
CREATION OF STOCK GROUP
● FROM GATEWAY OF TALLY> CREATE UNDER
INVENTORY MASTERS >STOCK GROUP.
● SET SHOULD QTY OF ITEMS BE ADDED TO YES.
● ACCEPT THE SCREEN.

CREATION OF STOCK CATEGORY

 FROM GATEWAY OF TALLY> CREATE> UNDER
INVENTORY MASTERS > STOCK CATEGORY.
 ENTER THE NAME.
 ACCEPT THE SCREEN.

CREATION OF UNIT OF MEASURE

 FROM GATEWAY OF TALLY> CREATE > UNDER

INVENTORY MASTERS> UNIT.
 ACCEPT THE SCREEN AFTER ENTERING THE DETAILS.
 12 CREATION OF GODOWN CREATION OF STOCK ITEM
 FROM GATEWAY OF TALLY> CREATE>  FROM GATEWAY OF TALLY>CREATE UNDER
UNDER INVENTORY MASTERS > GODOWN INVENTORY MASTERS.STOCK ITEM.
 SELECT C: CREATE NEW  CLICK F12:CONFIGURE> SET SHOW MORE
 ENTER THE NAME & CLICK I: MORE CONFIGURATION TO YES>UNDER
DETAILS > UNDER GENERAL DETAILS > INVENTORY DETAILS> SET USE STOCK
SELECT GODOWN ADDRESS CATEGORY FOR STOCK ITEMS TO YES.
 ENTER THE GODOWN ADDRESS  ENTER NAME AND SELECT CATEGORY AND
 ACCEPT THE SCREEN UNITS
 ACCEPT THE SCREEN
13 VOUCHERS
ACCOUNTING VOUCHERS
• PAYMENT
• RECEIPT
• CONTRA
• PURCHASE
• SALES
• DEBIT NOTE
• CREDIT NOTE
• JOURNAL

INVENTORY VOUCHERS
• DELIVERY NOTE
• JOB WORK IN ORDER
• JOB WORK OUT ORDER
• MATERIAL IN
• MATERIAL OUT
• PHYSICAL STOCK
• PURCHASE ORDER
• RECEIPT NOTE
• REJECTIONS IN
14

PAYROLL VOUCHERS
• ATTENDANCE
• PAYROLL
• NON – ACCOUNTING VOUCHERS
• MEMORANDUM
• REVERSING JOURNAL

TO ACTIVATE / DEACTIVATE VOUCHERS,

GO THROUGH THIS PATH
• GATEWAY OF TALLY
• MASTERS
• CHART OF ACCOUNTS
• VOUCHER TYPES
• SELECT VOUCHER TYPE, PRESS ENTER
• NOW ENABLE THE OPTION, “ACTIVATE THIS
VOUCHER TYPE “INTO YES
• ACCEPT THE TOTAL SCREEN
15

DIFFERENT
ACCOUNTING
VOUCHERS IN
TALLY PRIME
 16 SHORTCUT KEYS FOR
VOUCHERS
CTRL + F1To select payroll voucher from Inventory Voucher/Accounting On Gateway of Tally > Inventory Voucher/Accounting Voucher >
Screen Payroll Voucher

CTRL + F2 To select Sales Order Voucher from Accounting Voucher/ On Gateway of Tally > Accounting Voucher/ Inventory Voucher >
Inventory Voucher Screen Sales Voucher

CTRL + F4 To select Purchase Order Voucher from Accounting Voucher On Gateway of Tally > Accounting Voucher / Inventory Voucher >
Screen Purchase Order Voucher

CTRL + F10 To select memorandum voucher On Gateway of Tally > Accounting Voucher / Inventory Voucher >
Memorandum Voucher

CTRL + F9 To select Debit note voucher On Gateway of Tally > Accounting Voucher > Debit Note

CTRL + F8 To select Credit Note Voucher On Gateway of Tally > Accounting Voucher > Credit Note

F8 To Select Sales Voucher On Gateway of Tally > Accounting Voucher > Sales Voucher

F9 To select Purchase Voucher On Gateway of Tally > Accounting Voucher > Purchase Voucher

F7 To select Journal Voucher On Gateway of Tally > Accounting Voucher > Journal Voucher

F6 To select Receipts Voucher On Gateway of Tally > Accounting Voucher > Receipts Voucher

F5 To select Payments Voucher On Gateway of Tally > Accounting Voucher > Payments Voucher

F4 To Select Contra Voucher On Gateway of Tally > Accounting Voucher > Contra Voucher
17 RECEIPT VOUCHER
 ANY MONEY RECEIVED BY A
BUSINESS CONCERN, FROM
SALES OR ANY OTHER SOURCE
CAPITAL INTRODUCED
 BY OWNERS IS CONSIDERED
RECEIPTS AND ENTERED BY
USING THE RECEIPT VOUCHER IN
TALLY.
 A RECEIPT VOUCHER CAN BE
RECORDED IN TWO MODES:
 • DOUBLE ENTRY MODE: THIS
MODE ALLOWS TO DEBIT (DR)
AND CREDIT (CR) MULTIPLE
ACCOUNTS
 AT A TIME.
 • SINGLE ENTRY MODE: THIS
MODE ALLOWS TO DEBIT (DR)
ONE ACCOUNT AND CREDIT (CR)
 MULTIPLE ACCOUNTS AT A TIME.
 THESE 2 MODES ARE COMMON
 18
PAYMENT
VOUCHER

PAYMENT VOUCHER IS A TRANSACTION THAT IS PASSED TO RECORD ALL PAYMENTS

MADE BY THE BUSINESS.
PAYMENT VOUCHER IS USED FOR 2 TYPES OF PAYMENTS MADE EITHER BY CASH OR
BANK FOR ALL LEDGERS EXCEPT FOR BANK, SALES AND PURCHASES LEDGERS.
 19 CONTRA VOUCHERS

CONTRA VOUCHER IS A TRANSACTION INVOLVING THE

TRANSFER OF CASH BETWEEN ONE CASH A/C TO
ANOTHER
OR ONE CASH A/C TO BANK A/C OR FROM ONE BANK
A/C TO ANOTHER BANK A/C OR BANK A/C TO CASH
A/C.
FUND TRANSFERS WITHIN DIFFERENT ACCOUNTS OF
YOUR COMPANY, SUCH AS TRANSFER FROM ONE BANK
ACCOUNT
TO ANOTHER, THE DEPOSIT OF CASH TO A BANK
ACCOUNT, CASH WITHDRAWALS FROM ATMS OR,
WITHDRAWALS
FROM BANKS USING CHEQUE OR DD, CAN BE
RECORDED USING CONTRA VOUCHER IN TALLYPRIME.
CONTRA VOUCHERS ARE TO BE USED FOR
ACCOUNTING 4 TYPES OF BANKING TRANSACTIONS. A
TRANSACTION
INDICATING THE TRANSFER OF FUNDS FROM:
• CASH ACCOUNT TO BANK ACCOUNT
• BANK ACCOUNT TO CASH ACCOUNT; OR
• ONE BANK ACCOUNT TO ANOTHER BANK ACCOUNT
• ONE CASH ACCOUNT TO ANOTHER CASH ACCOUNT
20 PURCHASE VOUCHER
PURCHASE IS THE COST INCURRED BY THE BUSINESS CONCERN DURING A PERIOD, FOR
FURTHER SALE OF
INVENTORY. PURCHASE IS AN EXPENSE TO THE COMPANY. IT IS INCLUDED IN THE INCOME
STATEMENT AND IS
ALSO CONSIDERED UNDER THE COST OF GOODS SOLD.
THERE ARE TWO TYPES OF PURCHASE TRANSACTIONS- CASH PURCHASE AND CREDIT
PURCHASE. THE
VARIATION BETWEEN THESE PURCHASE TRANSACTIONS SIMPLY LIES IN THE TIMING OF
WHEN CASH IS RECEIVED.
A PURCHASE VOUCHER CAN BE RECORDED IN THE FOLLOWING THREE MODES:
A. VOUCHER MODE: IN VOUCHER MODE, THE DEBIT AND CREDIT AMOUNT FIELDS ARE
SHOWN ADJACENT
TO EACH OTHER (DOUBLE ENTRY MODE)
B. ITEM INVOICE MODE: THIS MODE, ALLOWS ENTRY OF LEDGERS AND INVENTORY DETAILS
LIKE STOCK
ITEM, QUANTITY, RATE AND AMOUNT DETAILS. (SINGLE ENTRY MODE)
C. ACCOUNTING INVOICE MODE: THIS MODE ALLOWS A USER TO DIRECTLY SELECT/DEBIT A
LEDGER
ACCOUNT WHILE PASSING AN ACCOUNTING INVOICE. THIS MODE IS USEFUL ESPECIALLY
WHEN A
‘SERVICE BILL’ IS BEING ENTERED (AS IT DOES NOT INCLUDE INVENTORY DETAILS). (SINGLE
ENTRY MODE)
NOTE: THESE 3 MODES ARE COMMON FOR PURCHASE, SALES, DEBIT NOTE AND CREDIT
NOTE VOUCHERS.
21 SALES VOUCHER

A SALES VOUCHER IS USED

WHEN A COMPANY SELLS
GOODS TO CUSTOMERS ON A
CASH, CHEQUE OR CREDIT
BASIS. SALES ENTRIES LEAD
TO AN INCREASE IN SALES
REVENUE.
THERE ARE TWO TYPES OF
SALES TRANSACTIONS- CASH
SALES AND CREDIT SALES. THE
VARIATION BETWEEN
THESE SALES TRANSACTIONS
SIMPLY LIES IN THE TIMING OF
WHEN CASH IS RECEIVED.
A SALES VOUCHER CAN BE
RECORDED IN THE FOLLOWING
THREE MODES:
A. VOUCHER MODE

B. ITEM INVOICE MODE

 22 JOURNAL
VOUCHER
JOURNAL VOUCHERS ARE USED TO PASS
ADJUSTMENT ENTRIES, TO ADJUST THE
DEBIT AND CREDIT AMOUNTS
WITHOUT INVOLVING CASH OR BANK
ACCOUNTS. ADJUSTING JOURNAL ENTRIES IS
TYPICALLY MADE JUST BEFORE
ISSUING A COMPANY’S FINANCIAL
STATEMENTS.
JOURNAL VOUCHER IS USED FOR ALL TYPES
OF CREDIT PURCHASE TOWARDS THE
ACQUISITION OF ASSETS AND
ALSO WHEN PROCUREMENT TOWARDS
EXPENSES ON CREDIT. FOR EXAMPLE, THE
PURCHASE OF STATIONERY
ITEMS ON CREDIT OR ANY OTHER EXPENSES
IN NATURE DIRECT OR INDIRECT.
JOURNAL VOUCHER IS USED FOR ALL TYPES
OF ACCOUNTING TRANSACTIONS WHICH DO
NOT FIT INTO CONTRA,
PAYMENT OR RECEIPT VOUCHERS. JOURNAL
VOUCHER IS USED FOR ALL TYPES OF
ACCOUNTING TRANSACTIONS
WHICH DOES NOT INVOLVE CASH OR BANK
LEDGERS.
23 CREDIT NOTE VOUCHER &
DEBIT NOTE VOUCHER
A CREDIT NOTE VOUCHER IS USED TO RECORD
TRANSACTION DETAILS OF SALES RETURNS OR RETURNS
INWARD. THE REASON FOR SALES RETURNS COULD BE
DAMAGED CONDITION OF GOODS SOLD, NOT AS PER
SPECIFICATIONS OF THE BUYER OR ANY OTHER. THERE
ARE TWO TYPES OF SALES RETURN TRANSACTIONS-
CASH SALES RETURNS AND CREDIT SALES RETURNS. IN
TALLY PRIME, A SALES RETURN TRANSACTION IS
RECORDED USING A CREDIT NOTE VOUCHER, GENERALLY
ISSUED BY THE SELLER TO THE BUYER. THE CREDIT
NOTE VOUCHER CAN BE RECORDED IN AS VOUCHER
MODE, ACCOUNTING INVOICE MODE AS WELL AS IN ITEM
INVOICE MODE
A DEBIT NOTE VOUCHER IS USED TO RECORD THE
TRANSACTION DETAILS OF THE PURCHASES RETURNS OR
RETURNS OUTWARDS. THE REASON FOR PURCHASES
RETURNS COULD VARY FROM SUPPLY OF DAMAGED
GOODS, OR GOODS NOT AS PER SPECIFICATIONS, TO
ANY OTHER.THERE ARE TWO TYPES OF PURCHASE
RETURN TRANSACTIONS- CASH PURCHASE RETURNS AND
CREDIT PURCHASE RETURNS. IN TALLYPRIME, A
PURCHASE RETURN TRANSACTION CAN BE RECORDED
USING A DEBIT NOTE VOUCHER FOR A CHANGE IN PRICE
CONSIDERATION. A DEBIT NOTE VOUCHER CAN BE
RECORDED IN AS VOUCHER MODE, ACCOUNTING
 24 ACCOUNTS PAYABLE AND
RECEIVABLE USING TALLY
THE BILL-WISE DETAILS FEATURE IN TALLY ENABLES
TRACKING OF TRANSACTIONS AND EFFICIENT
MANAGEMENT
OF PAYABLES AND RECEIVABLES. THIS FEATURE HELPS IN
TRACKING OUTSTANDING BILLS AND IN SENDING
REMINDERS ON TIME TO CUSTOMERS, THUS MANAGING
OUTSTANDING EFFICIENTLY.
THE BILL-WISE DETAILS FEATURE IN TALLYPRIME ENABLES
TRACKING OF EACH TRANSACTION AND EFFICIENT
MANAGEMENT OF PAYABLES AND RECEIVABLES. BILL-WISE
ENTRY HELP US TO MAINTAIN OUR SUNDRY CREDITORS
AND DEBTORS BILLS SYSTEMATICALLY AND WE CAN FIND
THE OUTSTANDING AMOUNT, DUE DATE OF EACH BILL AND
ALSO, WE CAN ALLOCATE PAYMENTS/RECEIPTS TO THE
CORRECT INVOICE TO MAINTAIN AN ACCURATE ACCOUNT
OF OUTSTANDING.
IN TALLY PRIME, FOUR TYPES OF REFERENCE DETAILS CAN
BE ENTERED FOR TRANSACTIONS. THESE REFERENCE
DETAILS, CALLED METHODS OF ADJUSTMENTS ARE NEW
25 ACTIVATION AND USAGE OF BILL-WISE
DETAILS
1) From Gateway of Tally>Click K: Company> Select
Features F11
2) The Company Features Alteration screen appears
3) Under Accounting, the option Enable Bill-wise entry is set
to Yes
4) Accept the screen.
 USAGE OF BILL-WISE
26 ENTRY IN PURCHASE AND
PAYMENT VOUCHER
When a purchase invoice is recorded, New
Reference is selected to give the transaction a
reference number with which it can be tracked
in the payment voucher as against and when
required.

USAGE OF BILL-WISE ENTRY IN SALES AND

RECEIPT VOUCHER:

When a sales invoice is recorded, New Reference is selected to give the

transaction a reference
number with which it can be tracked while recording receipt voucher by selecting
as Against
Reference
27 USAGE OF BILL-WISE ENTRY IN
PAYMENT AND RECEIPT VOUCHER

THE TERM ADVANCE MEANS INCOME RECEIVED IN ADVANCE OR

PAYMENTS MADE IN ADVANCE BY THE
COMPANY FOR FUTURE PURCHASE. INCOME RECEIVED IN ADVANCE
WILL NOT BE CONSIDERED AS INCOME
UNTIL THE GOODS ARE DELIVERED OR SERVICES ARE RENDERED, AS
PER ACCRUAL CONCEPT. HENCE,
• ALL ADVANCE PAYMENTS RECEIVED WILL BE CONSIDERED
AS LIABILITIES AND
• ALL ADVANCE PAYMENTS MADE WILL BE CONSIDERED AS
ASSETS.
ACCRUAL CONCEPT OF ACCOUNTING: UNDER THIS CONCEPT,
REVENUES ARE CONSIDERED AS INCOME WHEN
THE GOODS ARE DELIVERED, OR SERVICES ARE RENDERED BEFORE
COLLECTION OF CASH.
IF THE CASH IS COLLECTED BEFORE RENDERING THE SERVICE OR
DELIVERING THE GOODS, THEN THE CASH
COLLECTED WILL NOT BE CONSIDERED AS INCOME EARNED
28
BANKING FEATURES OF
TALLY

• AUTO BANK
RECONCILIATION
• CHEQUE
MANAGEMENT
• E-PAYMENTS
• DEPOSIT SLIP
29 FINANCIAL FEATURES

1. Cost Centre or Profit Centre

COST CENTRE OR PROFIT CENTRE IS A

PART OF YOUR FINANCIAL CONTROLLING
TOOLS. YOU CAN CREATE COST CENTRES
OR PROFIT CENTRES FOR DIFFERENT
BUSINESS UNITS, EMPLOYEES, PROJECTS,
DEPARTMENTS AND SO ON. THIS HELPS IN
MONITORING THE PROPER UTILISATION OF
THE FINANCIAL RESOURCES IN THE
ORGANISATION.
30 2. BUDGET
BUDGET IS ANOTHER EFFECTIVE TOOL
OF FINANCIAL CONTROL. A BUDGET IS
A PLAN PREPARED FOR THE FLOW OF
FUNDS IN AN ORGANISATION. IT
CONTAINS FINANCIAL GUIDELINES FOR
THE FUTURE PLAN OF ACTION FOR A
SPECIFIC PERIOD. IT HELPS TO VIEW
THE PLANNED BUDGET AGAINST THE
ACTUAL EXPENDITURE. BUDGETS HELP
YOU TO REFINE GOALS AND USE FUNDS
EFFICIENTLY. IT PROVIDES ACCURATE
INFORMATION FOR THE EVALUATION OF
FINANCIAL ACTIVITIES, AIDS IN
DECISION-MAKING, AND PROVIDES A
REFERENCE FOR FUTURE PLANNING.
THE PURPOSE OF A BUDGET IS TO
CONTROL EXPENSES, BUT AT THE SAME
TIME, YOU CAN CREATE A BUDGET TO
TRACK YOUR INCOME.
 31 3.INTEREST CALCULATION

INTEREST IS A LEGITIMATE RETURN ON MONEY INVESTED AND CHARGEABLE

IN THE BUSINESS WORLD ON LOANS AND ON DELAYED PAYMENTS. IF YOU
HAVE GIVEN A LOAN OR YOU HAVE SOLD YOUR GOODS TO YOUR CUSTOMERS,
THEN YOU CAN DECIDE TO CHARGE INTEREST FOR SUCH LOANS GIVEN OR ON
DELAYED PAYMENTS FROM YOUR CUSTOMER. YOU CAN ALSO KEEP TRACK OF
THE INTEREST CHARGED BY THE BANK ON YOUR OVERDRAFT ACCOUNT.
APART FROM THAT YOU CAN ALSO SET ADVANCED PARAMETERS TO
CALCULATE INTEREST. YOU CAN VIEW THE INTEREST ACCUMULATED ON THE
LOAN GIVEN OR ON THE PAYMENT DUE FROM GROUPS, LEDGER BALANCES
AND INVOICES. FINALLY, YOU CAN RECORD THE INTEREST RECEIVABLES AND
PAYABLES USING VOUCHER CLASS FOR DEBIT AND CREDIT NOTES.
32 4.MULTI CURRENCY
ACCOUNTING
BASED ON THE CURRENCY IN WHICH YOUR
CUSTOMER REQUIRES INVOICES, INTERNATIONAL
TRADING, OR OTHER REASONS, YOU MAY NEED TO
RECORD TRANSACTIONS IN A FOREIGN CURRENCY
IN TALLYPRIME. YOU CAN CREATE FOREIGN
CURRENCY IN TALLYPRIME, USING WHICH YOU CAN
RECORD TRANSACTIONS, DEFINE FOREX RATES,
AND CALCULATE FOREX GAIN OR LOSS, AS NEEDED
33 REPORTS
COMMON REPORTS
• BALANCE SHEET
• PROFIT & LOSS A/C
• CASH BOOK
• DAY BOOK
• LEDGER VOUCHERS
• TRIAL BALANCE
• MASTER & VOUCHER STATISTICS
• CHART OF ACCOUNTS
34
GST IN TALLY PRIME
34
TCS AND TDS