3:

Lesson Creating

Accounting Masters in Tally.ERP 9

Lesson Objectives On completion of this lesson, you will be able to understand

The basic functions of Tally.ERP 9 F11: Features F1!: "onfi#urations "reatin# and $aintainin# "hart of %ccounts
Enterin# the openin# balances for &ed#ers

"reatin# %ccountin# $asters in Tally.ERP 9

%fter creatin# a "ompany with the re'uired information, you can now enable( modify %ccountin# )n*entory features and confi#urations. 3.1 11: eatures The 11: eatures are "ompany+specific and the F1!: "onfi#urations are applicable to all the companies in a data directory. The 11: eatures is di*ided into the followin# ma,or cate#ories: %ccountin# Features )n*entory Features -tatutory Ta.ation Tally./ET Features

0ou can press 11 1functional 2ey3 from any screen of Tally.ERP 9 or you may also clic2 on the 11: eatures button a*ailable in the button bar, to enable the re'uired features. The 11: eatures are specific only to the company currently in use 1for which the said feature is enabled3, thereby allowin# fle.ibility of independently enablin# different features for each of the company. 4o to !ate"ay o# Tally $ press eatures 11:

2 2

The Co%&any shown.

eatures screen is displayed as

Figure 3.1 F11: Features Menu There are *arious settin#s a*ailable under %ccountin# Features, )n*entory Features and -tatutory Ta.ation Features, which facilitates the additional information to be entered durin# *oucher entry. 1: Accounting eatures The %ccountin# Features consists of confi#urations( functionalities, which #enerally affects %ccountin# transactions and reports. The %ccountin# features is further sub+ di*ided into si. sections, namely : 3 4eneral Oustandin#s $ana#ement "ost( Profit "entres $ana#ement )n*oicin# 5ud#ets( -cenario $ana#ement Other Features

4o to !ate"ay o# Tally $ 11: eatures $ Accounting eatures or clic2 on Accounts

1:

"reatin# %ccountin# $asters in Tally.ERP 9

The Accounting eature screen is displayed as shown.

Figure 3.2 F11: Accounting Features Screen Enable the re'uired features Press Enter to accept

': (nventory eatures The )n*entory features comprises of confi#urations( functionalities pertainin# to )n*entory transac+ tions and reports. The )n*entory features is further sub+di*ided into se*en sections, namely : 5 4eneral -tora#e )n*oicin# Purchase $ana#ement "lassification Order Processin#

"reatin# %ccountin# $asters in Tally.ERP 9

"reatin# %ccountin# $asters in Tally.ERP 9

-ales $ana#ement %dditional )n*entory 6ouchers

"reatin# %ccountin# $asters in Tally.ERP 9

4o to !ate"ay o# Tally $ 11: eatures $ (nventory eatures or clic2 on (nventory The (nventory shown. eature screen is displayed as

':

Figure 3.3 F11: Inventory Features Screen Enable the re'uired features Press Enter to accept

3 : )tatutory * Ta+ation The -tatutory Ta.ation features comprises of confi#urations( functionalities pertainin# to statutory compliances a*ailable in Tally.ERP 9. The -tatutory features are country specific and strictly depends upon the "ountry selected in the "ompany "reation screen. The followin# features are a*ailable, when )ndia is selected in the )tatutory Co%&liance #or field in the "ompany "reation screen. 7 E.cise 6alue %dded Ta.

"reatin# %ccountin# $asters in Tally.ERP 9

-er*ice Ta. Ta. 7educted at -ource Ta. "ollected at -ource Frin#e 5enefits Ta.

"reatin# %ccountin# $asters in Tally.ERP 9

Payroll

4o to !ate"ay o# Tally $ 11: eatures $ )tatutory * Ta+ation or clic2 on 3 : )tatutory The )tatutory * Ta+ation screen is displayed as shown.

Figure 3.4 F11: Statutory & Ta ation Features Screen Enable the re'uired features Press Enter to accept

,: Tally.-ET eatures The Tally.-ET eatures screen comprises of Registration and Re%ote Access of company data on Tally./ET. The Tally./ET features will be a*ailable only when, .se )ecurity Control is set to /es in "ompany master. !

"reatin# %ccountin# $asters in Tally.ERP 9

4o to !ate"ay o# Tally $ 11: eatures $ Tally.-ET eatures or clic2 on Tally.-ET 3.' 1' : Con#igurations

,:

1"

"reatin# %ccountin# $asters in Tally.ERP 9

)n Tally.ERP 9, the 1': Con#igurations are pro*ided for %ccountin#, )n*entory printin# options and are user+definable as per your re'uirements. The 1': Con#igurations are applicable to all the companies residin# in that Tally.ERP 9 7ata 7irectory. The 1': Con#iguration options *ary dependin# upon the menu display. i.e., if you press 1': con#igure from 6oucher entry screen, the respecti*e 1': Con#igurations screen is displayed. 4o to !ate"ay o# Tally $ &ress Con#igure 1':

The Con#iguration screen is displayed as shown.

Figure 3.5 F12: #on$iguration Menu There are numerous settin#s a*ailable under *arious menus in the F1!: "onfi#urations screen, which may be confi#ured for any additional information re'uired to be entered durin# master cre+ ations, *oucher entry and printin#. 3.'.1 !eneral 0ou can confi#ure "ountry 7etails, -tyle of /ames, 7ates and /umbers in the 4eneral 11

"reatin# %ccountin# $asters in Tally.ERP 9

confi#ura+ tion screen.

12

"reatin# %ccountin# $asters in Tally.ERP 9

Figure 3.6 %enera& #on$iguration screen 3.'.' -u%eric )y%bols 0ou can confi#ure /umber -tyles and -ymbols used to represent Positi*e /umbers, /e#ati*e /umbers, 7ebit %mounts and "redit %mounts by usin# /umeric -ymbols. This is displayed on the /umber -tyles confi#uration screen.

13

"reatin# %ccountin# $asters in Tally.ERP 9

Figure 3.7 'u()er Sty&es #on$iguration screen

3.'.3 Accts 0 (nventory (n#o. The fields pertainin# to both %ccountin# and )n*entory )nfo. can be confi#ured from this menu.

14

"reatin# %ccountin# $asters in Tally.ERP 9

Figure 3.8 Accts * Inventory In$o. screen

Master Con#iguration

%dditional information can be confi#ured by settin# the options to /es which will accordin#ly appear in the masters. Allo" AL(A)E) along "it1 na%es: This confi#uration helps in identifyin# an account by another name. Allo" Language AL(A)E) along "it1 na%es: This confi#uration helps the user to #i*e an alias in any local lan#ua#e. Accounts Masters Allo" A23A-CE2 entries in Masters: This confi#uration displays the additional fields in the %ccountin# $asters such as: !rou& be1aves li4e a )ub5Le6ger 7 -et to /es, the #roup beha*es li2e a "ontrol %ccount for the led#ers it contains, wherein only the #roup balance is displayed. This is useful while wor2in# on #roups li2e the Sundry Debtors and Sundry Creditors 1pre+set to /es3, where the led#er items are numerous. 15 -ett 2ebit0Cre6it 8alances #or Re&orting7

"reatin# %ccountin# $asters in Tally.ERP 9

-et to /es, this confi#uration displays the amount as a net fi#ure instead of separate debit and credit balances as shown in the reports.

16

 .se A22RE))E) #or Le6ger Accounts : This Field can be used for #i*in# the address and )ncome Ta. /umber of the led#er accounts. .se CO-TACT 2ETA(L) #or Le6ger Accounts: This "onfi#uration #i*es the user an opportunity to fill details li2e "ontact person, Telephone, Fa., E+$ail etc. A66 -OTE) #or Le6ger accounts : This field helps the user to add the additional notes for led#er accounts. (nventory Masters Allo" A23A-CE2 entries in Masters: This "onfi#uration will display additional field in )n*entory masters. .se PART -.M8ER) #or )toc4 (te%s: 0ou can enter the Part /umber of the item bein# created for easy identification. 1)n certain industries, such as automobiles, their part num+ bers identifies *arious parts3. 0ou can alternati*ely use this field for the 5in "ard /umber, "ode /umber etc. .se 2escri&tion #or )toc4 (te%s: 0ou can enter the description of the -toc2 )tem that would appear in your in*oices. .se REMAR9) #or )toc4 (te%s: This helps to identify the product and its applications. 0ou can #i*e some particulars of the -toc2 )tem created. This will help you later when you post a 'uery for the stoc2 of this item, while you decide whether the item is suitable for a particular re'uirement or not. .se ALTER-ATE .-(T) #or )toc4 (te%s : This is another unit, apart from the main unit, which you can use instead of the -toc2 )tem. This is particularly useful when you need to handle different units at different times. For e.ample, you buy Data Cables in pieces but sell them in pac2ets of 8 pieces each. For alternate units, you are as2ed to #i*e a con*er+ sion factor 1e.#. 83 so that a lin2 is maintained between the two. 9hat you #i*e here is sim+ ply a con*ersion factor that comes up as default durin# a *oucher entry. 0ou may specify a different factor durin# *oucher entry. Allo" )t6. Rates #or )toc4 (te%s: -tandard rates enable the *aluation of an in*entory at standard purchase or standard sales prices. $oreo*er, these prices come up by default durin# *oucher entry 1you may choose to o*erride them if re'uired3. The standards are effecti*e from the specified dates and they continue to be used at these rates until the ne.t date, where the standard rate chan#es. )&eci#y 2e#ault Le6ger Allocation #or (nvoicing: This confi#uration allows the user to allocate the led#ers to be used for Purchase and -ales )n*oice. Allo" co%&onent list 6etails :8ill o# Materials; : The 5ill of $aterials contains a list of items that are re'uired to ma2e up another item. )n other words, it is a list of constituent items. .se A22RE))E) #or !o6o"ns: This confi#uration enables the user to #i*e the address for locations.

3.'., 3ouc1er Entry 5oth the %ccountin# and )n*entory 6ouchers can be confi#ured from this menu for additional information.

Figure 3.! +ouc,er #on$iguration screen

Accounting 3ouc1ers

)4i& 2ate #iel6 in Create Mo6e :#aster entry<; : -et to /es, the Tally.ERP 9 cursor #oes directly to the 7r or "r field dependin# on the *oucher type. :owe*er, if set to -o, the Tally.ERP 9 cursor #oes to the 7ate field. )t is ad*anta#eous to set this option to /es for a faster entry if there are many entries to be made on the same date. .se )ingle Entry %o6e #or Py%t0 Rc&t0Contra : This confi#uration helps in selectin# multiple debits or credits dependin# on the type of entry. .se Pay%ent0Recei&t as Contra: To indicate the transfer of funds from ban2 to cash, ban2 to ban2 and cash to ban2, Tally.ERP 9 pro*ides a *oucher type called ;"ontra<. This confi#uration is acti*ated while usin# payment and receipt *ouchers for a ;"ontra< transac+ tion. .se Cr02r instea6 o# To08y 6uring Entry: This confi#uration #i*es the fle.ibility to use "r( 7r or To(5y in 6ouchers as per the re'uirement or the understandin# of the user. =arn on -egative Cas1 8alance: This option in Tally.ERP 9 displays a warnin# if the cash balance is /)&.

 Pre5Allocate 8ills #or Pay%ent0Recei&t : This "onfi#uration enables the user to select the bills first before the total amount can be updated in the amount field. This option is e.tremely useful while "he'ue Printin#. Allo" Cas1 Accounts (n >ournals: =ournals are ad,ustment entries. :owe*er, in many cases companies re'uire ,ournals to account for day+to+day transactions in*ol*in# cash or ban2 accounts. Allo" E+&enses0 i+e6 Assets in Purc1ase 3ouc1ers : This confi#uration helps the user to enter the details of purchase of fi.ed assets in the Purchase 6oucher. Allo" (nco%e Accounts in )ales 3ouc1ers : This confi#uration helps the user to allocate the income accounts in the sales *oucher. )1o" (nventory 2etails: This confi#uration when set to /es shows the name of the stoc2 item, 'uantity, rate and *alue details. )1o" Table o# 8ills 2etails #or )election : This confi#uration displays a table which lists out the references of the pendin# bills )1o" 8ill5"ise 2etails: This confi#uration enables the user to *iew the bill+wise details in the *oucher. E+&an6 into %ulti&le lines: This confi#uration displays the due date of repayment based on the credit days #i*en. )1o" Le6ger Current 8alances: This confi#uration displays the current balance of the led#er selected while an entry is made. This is a con*enient feature to use since it helps to #et the information without referrin# to the report. )1o" 8alances as on 3ouc1er 2ate: -et to /es? a *oucher that is *iewed in the alteration mode displays the led#er balances on the *oucher screen based on the *oucher date. (nventory 3ouc1ers .se Re#. -u%ber in )toc4 >ournal: This confi#uration pro*ides an additional field called Re#. in the -toc2 ,ournal, where the user can enter the reference number. =arn on -egative )toc4 8alance : This confi#uration warns the user in cases where the item selected reaches a ne#ati*e balance in the )n*oice mode. @onor E+&iry 2ates usage #or 8atc1es : This confi#uration hides the batch details that are redundant and ha*e e.pired. )1o" 8alances as on 3ouc1er 2ate: This confi#uration enables the user to *iew the in*entory balances accordin# to the *oucher date )1o" !o6o"n"ise 2etails : This confi#uration enables the user to *iew 4odown details. )1o" 8atc1"ise 2etails : This confi#uration enables the user to *iew 5atch details.

3.'.A (nvoice 0 Or6ers Entry

The )n*oice entry and Order entry screens can be confi#ured for additional information such as e.port details, shippin# details, etc.

3.'.B Printing This confi#uration helps the user to confi#ure the printin# screens for the reports and transac+ tions. 3.'.C 2ata Con#iguration This confi#uration helps the user to define location of &an#ua#e Files, Tally "onfi#uration File, E.port Files, 7ata Files and details of the companies to be loaded on startup. 3.'.D T2L Con#iguration This screen pro*ides details re#ardin# T7& "onfi#uration *i>., &ocal T7&s, %ccount T7&s Remote T7&s enabled for the product. 3.'.9 A6vance6 Con#iguration This confi#uration helps the user to specify "lient(-er*er "onfi#uration, "onnection confi#uration and Pro.y confi#uration for O75" connecti*ity and -ynchronisation of 7ata. 3.'.1E Licensing This confi#uration helps the user to update, surrender, reset license and also confi#ure e.istin# &icense . 3.3 )etting u& Account @ea6s Tally.ERP 9 allows you to create %ccount heads and #roups as per your re'uirements. The fle.i+ bility and ease of creatin# user+defined %ccount :eads and #roups 1"hart of %ccounts3 as per nature of business or business practice ma2es Tally.ERP 9 suitable for businesses across indus+ tries, *erticals and #eo#raphies, without chan#in# the way they do their business. 3.3.1 C1art o# Accounts Tally.ERP 9 follows the 7ouble Entry system of %ccountin#. )t records accountin# information by debitin# and creditin# different &ed#er %ccounts usin# different *oucher types dependin# upon the nature of transaction. )t automatically collates the debit and credit amounts and arri*es at the closin# balance of each led#er ( #roup ( report. 3.3.' Pre56e#ine6 !rou&s o# Accounts There are !? predefined #roups in Tally.ERP 9, which are widely used in the "hart of %ccounts of many tradin# or#ani>ations. Out of these, 18 #roups are Primary 4roups and the remainin# 1@ are -ub+4roups.

%mon# the 18 predefined #roups, 9 4roups are 5alance -heet items and the remainin# A #roups are Profit &oss %(c items. :owe*er, you may also alter the nomenclature of these predefined !? 4roups The List o# Accounts screen is displayed as shown 1. Ca&ital Account Reser*es -urplus BRetained Earnin#sC '. Current Assets 5an2 %ccounts "ash+in+hand 7eposits 1%sset3 &oans %d*ances 1%sset3 -toc2+in+hand -undry 7ebtors 3. Current Liabilities 7uties Ta.es Pro*isions -undry "reditors ,. i+e6 Assets A. (nvest%ents B. Loans :Liability; 5an2 O7 %(c B5an2 O"" %(cC -ecured &oans Dnsecured &oans C. )us&ense A0c D. Misc. E+&enses :Asset; 9. 8ranc102ivisions Out of the 1A &re56e#ine6 &ri%ary grou&s, the followin# are the si. pre+defined #roups that appear in the Profit &oss %ccount. 1. !. @. E. 8. A. -ales %ccounts Purchase %ccounts 7irect )ncomes B)ncome 17irect3C )ndirect )ncomes B)ncome 1)ndirect3C 7irect E.penses BE.penses 17irect3C )ndirect E.penses BE.penses 1)ndirect3C

The Items in square brackets are aliases for the Group Names. This is another powerful feature of Tally.E ! "# which allows you to refer to the
same item under se$eral different names.

3.3.3 !rou&s an6 Le6gers 4roup is a collection of &ed#ers of the same nature. )n a business, e.penditures li2e telephone e.penses, electricity char#es, con*eyance etc., are commonly incurred. &ed#ers based on these e.penditures are created to be used while accountin# *ouchers are entered. To 2now the total of such e.penses for any period 1a wee2 or a month3, similar natured e.pense led#ers are #rouped.

%ake sure all the options in the F12: Configure &%aster confi'uration( are set to No. The function of each option will be e)plained as and when the topic is co$ered.

&ed#er account heads are the actual account heads with which we identify the transactions. %ll *oucher entries ha*e to be passed usin# led#ers. To Dnderstand the concept of 4roups and &ed#ers, let us create Le6gers and !rou&s in (n6us Enter&rises. 1. Pro&rietorFs Ca&ital Account F under Ca&ital Account with an openin# balance of Rs.!8GGG. !. Lan6 * 8uil6ing F under i+e6 Assets with an openin# balance of Rs.AGGGG. @. Milton * Co F under )un6ry 2ebtors because we ha*e sold some #oods to them F with an openin# balance of Rs.18GGG. E. 9altronic Lt6 F under )un6ry Cre6itors F because we ha*e purchased some #oods from them with openin# balance of Rs. ?8GGG. 8. Local )ales F under )ales Account with no openin# balance. A. Local Purc1ases F under Purc1ase Account with no openin# balance.

H. )tate 8an4 o# (n6ia F under 8an4 Accounts with an openin# balance of Rs. @8GGG. ?. Conveyance F under (n6irect E+&enses with no openin# balance. 9. 8an4 (nterest F under (n6irect (nco%e with no openin# balance. /otice that we ha*e mentioned led#er names under #roups i.e., under "apital %ccount, under -undry 7ebtor, etc. which are referred to as !RO.P names. &ed#ers are created in the followin# manner: 4o to the !ate"ay o# Tally $ Accounts (n#o. $ Le6gers $ Create. The Le6ger Creation screen appears as shown below:

Figure 3.1" -e.ger #reation screen Practice E+ercise Two of the nine led#er accounts will be created by us. %s a practice e.ercise you will be creatin# the remainin# se*en led#ers. 1. Pro&rietorFs Ca&ital Account un6er Ca&ital Account "it1 an o&ening balance o# Rs. 'AEEE. Enter -a%e as Pro&rietorFs Ca&ital Account. -elect Ca&ital Account from the List o# !rou&s. Enter 'AEEE in the O&ening 8alance :on 15A&r5'EE9; field.

Figure 3.11 -e.ger #reation screen / 0ro1rietor2s #a1ita& Account Press / or Enter to accept the screen. /otice that Tally.ERP 9 automatically capitalises the first letter for you. '. Lan6 * 8uil6ing un6er i+e6 Assets "it1 an o&ening balance o# Rs.BEEEE . Enter -a%e as Lan6 * 8uil6ing. -elect i+e6 Assets from the List o# !rou&s. Enter BE?EEE in the O&ening 8alance :on 15A&r5'EE9; field.

Figure 3.12 -e.ger #reation / -an. & 3ui&.ing Press / or Enter to accept the screen.

Tally.ERP 9 displays the total debit and credit openin# balances while the led#ers are bein# created in the &ed#er "reation screen. This is to a*oid differences in the openin# balance. -o far, we ha*e used the default #roups pro*ided in Tally.ERP 9, but Tally.ERP 9 does allow us to create our own #roups. To 2now how to do so, let us e.plore the options a*ailable under the creation of 4roups usin# Tally.ERP 9Is pre+defined #roups. 4roups can be created in the followin# manner: 4o to the !ate"ay o# Tally $ Accounts (n#o. $ !rou&s. The 4roups menu appears as shown below:

Figure 3.13 %rou1s Menu

*ou can create one 'roup at a time by pressin' Enter on Create under Single Group menu. In case# you want to create multiple 'roups simultane+ ously# you can create them by pressin' Enter on Create under Multiple
Groups.

"reate the followin# -undry 7ebtors &ed#er accounts : !rou&s + -ort1 2el1i 2ebtors and 81o&al 2ebtors under -ort1 (n6ia 2ebtors. Mysore 2ebtors and )ecun6raba6 2ebtors under )out1 (n6ia 2ebtors. Renison * Co and Milton * Co #rouped under -ort1 2el1i 2ebtors.

)olution The solution is to first create two sub+#roups -ort1 (n6ia 2ebtors and )out1 (n6ia 2ebtors under -undry 7ebtors. 4o to the !ate"ay o# Tally $ Accounts (n#o. $ !rou&s $ Create. Enter -a%e as -ort1 (n6ia 2ebtors

%#ainst the field .n6er select )un6ry 2ebtors from the List o# !rou&s

The !rou& Creation screen appears as shown below :

Figure 3.14 %rou1 #reation / 'ort, In.ia 4e)tors Press / or Enter to accept the screen. -imilarly create the followin# 4roups: )out1 (n6ia 2ebtors under )un6ry 2ebtors. Mysore 2ebtors and )ecun6raba6 2ebtors under )out1 (n6ia 2ebtors. -ort1 2el1i 2ebtors and 81o&al 2ebtors under -ort1 (n6ia 2ebtors.

Tally.ERP 9 allows you to create any number of #roups under all the default #roups. 9e ha*e now created two sub+#roups under -undry 7ebtors *i>. /orth )ndia 7ebtors and -outh )ndia 7ebtors. %dditionally, we ha*e created two sub+#roups each under /orth )ndia 7ebtors and -outh )ndia 7ebtors as per the re'uirements. &et us now create the led#ers for Renison * Co and Milton * Co under -ort1 2el1i 2ebtors. 4o to the !ate"ay o# Tally $ Accounts (n#o. $Le6gers $ Create :Multi&le Le6gers;. "reate Renison * Co and Milton * Co under -ort1 2el1i 2ebtors. -elect -ort1 2el1i 2ebtors from List o# !rou&s.

Enter Renison * Co in the -a%e o# Le6ger field.

Enter Milton * Co in the -a%e o# Le6ger field.

Figure 3.15 Mu&ti5-e.ger #reation -ort1 2el1i 2ebtors is automatically prefilled in the .n6er field, press Enter to accept Press Enter to accept the screen.

9e ha*e learnt to create led#ers in both the sin#le and multiple mode under Tally.ERP 9Is default pre+defined #roups. 9e ha*e also created our own sub+#roups under Tally.ERP 9Is predefined #roups. Return to the !ate"ay o# Tally and shut (n6us Enter&rises and select -ational Tra6ers.

4i*en below is the Trial 8alance of -ational Tra6ers e.tracted from the 5oo2s of %ccounts at the close of business on $arch @1, !GG9.
Trial 8alance Particulars 5an2 account 7eposit %ccount Petty "ash Openin# -toc2 -undry 7ebtors &Total( "ompu "are -ystems 7ata &in2 Technolo#ies -pectrum "omputers -upreme "omputers 5uildin#s 5uildin#s %ccum 7eprn Office E'uipment Office E'uip %ccum 7eprn Ta. 7educted at -ource -ales ta. -undry "reditors &Total( "hallen#er -ystems :ori>on Enterprises -il*erplus "omputers $utual Trust &oan E'uity "apital Profit Total &oss %(c A1D9A E A8A8 G EEH8 G E8AG G 8EG G !AGG G 1!EG G 1@8G G H8GG G !8GG G ?GG G E8G G EH? G 1@AG G 18AGG G 2ebit @8GG G EGGG G 8G G !?A18 G8H@G G Cre6i t

8GGG G !8GGG G@!GH G A1D9A E

The "hart of %ccounts to be prepared is based on the abo*e Trial 5alance of /ational Traders. This is to assist you in understandin# the classification of led#ers. To help you, each account has been mar2ed as :

P + Pre+defined Tally.ERP 9 4roup 1no action3 L + &ed#er account re'uired -! + /ew 4roup re'uired -P! + /ew Primary 4roup re'uired

3.3., C1art o# Accounts o# -ational Tra6ers

1. Ca&ital Accounts as a&&earing in t1e 8alance )1eet:

Figure 3.16 #,art o$ Accounts in 3a&ance S,eet / Assets

Figure 3.17 #,art o$ Accounts in 3a&ance S,eet / -ia)i&ities

'. Revenue Accounts a&&earing in t1e Pro#it * Loss Account

Figure 3.18 #,art o$ Accounts in 0ro$it & -oss account / Inco(es

Figure 3.1! #,art o$ Accounts in 0ro$it & -oss account / 6 1enses

Tally.ERP 9 =al45t1roug1 to Create !rou& -a%es #or -ational Tra6ers . "hec2 the followin#: 1. "hec2 whether the "urrent 7ate is A&ril 1, 'EE9. To chan#e the "urrent 7ate, clic2 ': 2ate on the button bar. /ote that Tally.ERP 9 increments the date assumin# that you want to chan#e to the ne.t day. 0ou can accept it or chan#e it. Type 15,5'EE9 and press Enter to accept. !. Press Esc, if you do not ha*e the !ate"ay o# Tally menu displayed. &et us now #et familiar with Tally.ERP 9Is 7isplay functions. 2is&laying grou&s in )ingle !rou& an6 Multi&le !rou& in t1e c1art o# accounts 4o to the !ate"ay o# Tally $ Accounts (n#o. $ !rou&s $ 2is&lay :)ingle !rou&; $ -elect 8an4 Accounts.

Figure 3.2" %rou1 4is1&ay / 3an7 Account

0ou can now use the Page .& and Page 2o"n 2eys to *iew different #roups.

The Groups in Tally.E ! "# ser$e to both classify and identify account heads &led'er accounts( accordin' to their nature. This enables a pres+ entation of summarised information. The Groups ha$e a hierarchical or'anisation. ,t the top of the hierarchy are Primary Groups where accounts are classified into capital or re$enue# more specifically into assets# liabilities# income and e)penditure to determine the entire accountin' and their presentation# i.e.# whether a led'er affects !rofit - .oss ,ccount &as a re$enue item( or 'oes into the /alance Sheet.

Tally.E ! " pro$ides a set of reserved groups, based on mercantile accountin' principles# and allows you to modify their names or create su !groups and primary groups.

&et us now *iew the &ist of 4roups in the Multi&le 2is&lay Mo6e. 4o to the !ate"ay o# Tally $ Accounts (n#o. $ !rou&s $ 2is&lay :Multi&le !rou&s; $ -elect All (te%s

Figure 3.21 Mu&ti5%rou1 4is1&ay screen A66ing grou&s to t1e c1art o# accounts 2e&reciation under Pri%ary !rou& 8uil6ings and O##ice EGui&%ent under i+e6 Assets

0se Multiple Groups Creation to create "uildings and #ffi$e E%uip! ment. 0se Single Group Creation to create &epre$iation.

In the F12: Group Configuration# 'llo( '&)'NCE& entries in Masters when set to *es# displays Primary as an option in addition to the other pre+ defined Groups.

9e can access all the confi#uration options for the $asters from the !ate"ay o# Tally $ 1': Con#igure $ Accts 0 (nventory (n#o. 4o to the !ate"ay o# Tally $ Accounts (n#o. $ !rou&s $ Create 1-in#le 4roup3. "lic2 on 1': Con#igure button and set /es to: Allo" AL(A)E) along "it1 -a%es Allo" Language AL(A)E) along "it1 -a%es. Allo" A23A-CE2 entries in Masters.

%ccept the confi#uration screen and Tally.ERP 9 displays the 4roup "reation -creen in which you will notice additional information li2e: 1. Alias F This is a simple mechanism of identifyin# an account by another name. !. !rou& be1aves li4e a )ub5Le6ger F The #roup beha*es li2e a "ontrol %ccount for the led#+ ers it contains when set to /es. Only the #roup balance will be displayed, not the indi*idual led#er balances. )t is useful for #roups such as Sundry Debtors and Sundry Creditors 1which are pre+set to /es3 where there can be numerous led#er items. @. -ett 2ebit0Cre6it 8alances #or Re&orting F 5y settin# this to /es? amounts will be displayed as a net fi#ure instead of separate debit and credit balances in reports. Create !rou& 1. -a%e: 2e&reciation !. :alias;: Type 2e&rn and press Enter. This allows you to refer to the #roup by either name. 0ou will notice that there is a field to enter a second alias if re'uired. )f you enter a name here, another alias field will be displayed, and so on. Tally uses the main name on all displays and reports, but this multiple alias facility is e.tremely useful for data entry. @. .n6er: -elect Pri%ary from the list of 4roups
E. -ature o# !rou&: -elect E+&enses

Nature of Group is displayed when the new Group is created under a Primary Group. It helps to distin'uish whether the 'roup is a part of assets# liabilities# income or e)penses# to identify the correct 'roup for the /alance Sheet or !rofit - .oss ,1c.

8. 2oes it a##ect !ross Pro#its7 : -o -ince these are E+&enses 1and the same is true for (nco%e3 which affect the Profit &oss %(c, Tally.ERP 9 needs to 2now if the #roup affects the #ross profit. This field will

not appear if you are addin# a #roup to an e.istin# #roup.

 2or !rimary Income and E)penses Groups# the field &oes it affe$t Gross Profit+ tells Tally.E ! " whether the item is abo$e or below the line in the !rofit - .oss ,1c in terms of its effect on the 'ross or net profit. Direct items are pre+ set to *es and indirect items to No.

A. !rou& be1aves li4e a )ub5Le6ger: -o H. -ett 2ebit0Cre6it 8alances #or Re&orting : -o. ?. .se6 #or Calculation :eg. Ta+es? 2iscounts;: -o 9. Met1o6 to Allocate "1en use6 in Purc1ase (nvoice : -ot A&&licable The 4roup "reation -creen appears as shown below :

Figure 3.22 %rou1 #reation / 4e1reciation 1G. Press / or Enter to accept the screen.

Altering !rou&s Once created, #roups can be altered by selectin# the Alter option for sin#le or multiple #roups. The procedure is the same as used earlier to display #roups, e.cept that, here the data can be altered.

2eleting !rou&s 0ou can delete a #roup *ia the !rou& Alteration 1-in#le $ode3 screen by pressin# AltH2. :owe*er, you cannot delete Tally.ERP 9<s pre+defined #roups, or #roups with sub+ #roups or #roups containin# led#ers. T1e lo"est level %ust be 6elete6 #irst. Tally.ERP 9 "al4t1roug1 to create -ational Tra6ers le6gers "it1 o&ening balances. 4o to the !ate"ay o# Tally $ Accounts (n#o. $ Le6gers $ Create. A66ing Le6gers )ingle

1. -a%e: Mutual Trust Loan !. Alias: )4i& t1is #iel6 @. .n6er: )ecure6 Loans E. (nventory values are a##ecte6 7 : -o 8. O&ening 8alance :on 15A&ril5'EE9;: AEEEE Cr

Figure 3.23 -e.ger #reation / Mutua& Trust -oan

Tally.E ! " automatically assumes this to be a credit balance &Cr( howe$er# you can chan'e it to debit &Dr( if required. ,lso note that Tally.E ! " currently displays a runnin' total of the difference in the 3penin' /alance. This difference should be 4ero when all the balances ha$e been entered.

A. Press / or Enter to accept the screen. A66ing Le6gers Multi&le

.n6er !rou&: )un6ry 2ebtor -a%e o# Le6ger: 2ata Lin4 Tec1nologies O&ening 8alance: 'BEEE 2r -a%e o# Le6ger: )&ectru% Co%&uters O&ening 8alance: 1',EE 2r -a%e o# Le6ger: )u&re%e Co%&uters O&ening 8alance: 13AEE 2r Press / or Enter to accept the screen. an6 2is&laying

Altering Le6gers

The procedures for alterin# and displayin# led#ers are similar to those of #roups. /ow try this out on /ational Traders by alterin# the Tally.ERP 9 pre+defined led#er for "ash to Petty "ash and enterin# the openin# balance: -elect Alter from the )ingle Le6ger option. -elect Cas1 from the &ist of &ed#ers. "han#e the -a%e from Cas1 to Petty Cas1. Enter the O&ening 8alance of 8GG 7r.

Press / or Enter to accept the screen. )f you use 2is&lay in )ingle Le6ger now, you will see that the List o# Le6gers shows Petty "ash instead of "ash. 2eleting

Le6gers 0ou can delete a led#er, by pressin# AltH2 in the &ed#er %lteration screen. 0ou will not be able to delete a led#er, once the financial transactions 1*ouchers3 ha*e been entered 1e.cludin# the Openin# 5alance3. )f there is a need to delete a led#er with any financial transactions the lowest le*el must be deleted first by pressin# AltH2.

Create ot1er Le6gers given in t1e Trial 8alance 1. Remember, you ha*e already input the led#er details for the two -undry 7ebtors, the $utual Trust &oan and Petty "ash. !. 9or2 from the Trial 5alance, referrin# to the "hart of %ccounts for the #roup to select, and cre+ ate the led#ers usin# the sin#le or multiple options, dependin# on the number of led#ers you create. @. For the led#ers under )ales Accounts and Purc1ase Accounts, set (nventory values are a##ecte67 to -o. Reset it to /es when you start )n*entory 6ouchers. E. Please enter on the led#er names as per the Trial 5alance. 8. -undry "reditors should be set up usin# the multiple options in the same way as the -undry 7ebtors, e.cept that the openin# balances will be credits. A. 9atch the debits and credits on the two accumulated depreciation led#ers as, Tally.ERP 9 assumes it to be a debit balance 17r3. 0ou need to chan#e this to "r. H. "reate a led#er for 5an2 )nterest e*en thou#h its balance is >ero. 3eri#y t1e 8alances Le6gers an6 O&ening

)n practical situations, that is all you ha*e, the "hart of %ccounts and the Trial 5alance. 0ou need to match the Trial 5alance led#er accounts with the "hart of %ccounts. 0ou mi#ht put the openin# balance fi#ures in the chart of accounts itself. Tally.ERP 9 needs to 2now the 4roup under which each account falls at the time you are creatin# the led#er account. To ease your wal2+throu#h, the followin# Multi Le6ger Alteration screen is ta2en from Tally.ERP 9 after enterin# the data. 0ou can use them to *erify your led#er accounts: 4o to the !ate"ay o# Tally $ Accounts (n#o. $ Le6gers $ Multi&le Alteration $ -elect All (te%s .

Figure 3.24 Mu&ti5-e.ger A&teration screen Press / or Enter to accept the screen.

Points to Re%e%ber F11: Features are company+specific. 0ou are allowed to specify options that are specific to the selected company only. The %ccountin# Features helps the user to create 5ud#ets -cenarios, "urrencies, "ost "entres, "ost "ate#ories etc. in addition to 4roups and &ed#ers. The )n*entory Features helps the user to create -toc2 cate#ories, $ulti+ ple 4odowns, Dse Trac2in# /umbers, Order Processin#, Price le*els etc. in addition to -toc2 4roups, -toc2 )tems and Dnits of $easure. The -tatutory Ta.ation Features helps the user to enable 6alue %dded Ta. 16%T3, E.cise, -er*ice Ta., Ta. deducted at -ource1T7-3, Ta. "ollected at -ource 1T"-3, E.cise 7uty alon# with Ta. information such as &ocal -ales Ta. /umber, )nter+state -ales Ta. /umber, P%/( )ncome + Ta. /umber. F1!: "onfi#uration options are applicable to all the companies in the same data directory. %ll financial entries are performed usin# led#ers or account heads. 4roup is a collection of &ed#ers of the same nature. 0ou can delete a led#er by pressin# %ltJ7 in the &ed#er %lteration screen.