INTRODUCTION TO TALLY.

ERP 9
Getting Started with Tally.ERP 9
 Learning Tally.ERP 9

1.1 Introduction to Tally.ERP 9 Accounting Software

Tally.ERP 9 is one of the most widely used financial software. Tally.ERP 9 reports can help a business owner make
informed decisions to increase efficiency, reduce costs, and organize business operations.
With Tally.ERP 9, accurate, up-to-date business information is available at your fingertips anytime. It provides a
Comprehensive solution for the accounting and inventory needs of a business.
It provides the capability to generate fully accurate tax returns in a matter of minutes and is also capable of
extracting, interpreting and presenting financial data.
Tally.ERP 9 is the world’s fastest and most powerful concurrent Multi-lingual business Accounting and Inventory
Management software. Tally.ERP 9, designed exclusively to meet the needs of small and medium businesses, is a
fully integrated, affordable and highly reliable software. Tally.ERP 9 is easy to buy, quick to install, and easy to learn
and use. Tally.ERP 9 is designed to automate and integrate all your business operations, such as sales, finance,
purchasing, inventory, and manufacturing. With Tally.ERP 9, accurate, up-to-date business information is literally
at your fingertips anywhere. The powerful new features and blazing speed and power of Tally.ERP 9 combined
with enhanced MIS, Multilingual, Data Synchronization and Remote capabilities help you simplify all your business
processes easily and cost-effectively.
1.1.1 Salient Features of Tally.ERP 9
 A leading accounting package: The first version of Tally was released in 1988 and, through continuous
development, is now recognised as one of the leading accounting packages across the world, with over a
quarter million customers. Tally’s market share is more than 90%.
 No accounting codes: Unlike other computerised accounting packages which require numeric codes,
Tally.ERP 9 pioneered the ‘no accounting codes’ concept. Tally.ERP 9 users have the freedom to allocate
meaningful names in plain English to their data items in the system.
 Complete business solution: Tally.ERP 9 provides a comprehensive solution to the accounting and
inventory needs of a business. The package comprises financial accounting, book-keeping and inventory
accounting. It also has various tools to extract, interpret and present data.
 Integrated/Non-integrated accounting and inventory: With Tally.ERP 9, the user is able to choose to
maintain accounts only. If accounting with inventory is opted for, the user can choose whether it should be
integrated or not.
 Flexible and easy to use: Tally.ERP 9 is very flexible. It mimics the human thought process, which means
that Tally.ERP 9 can adapt itself to any business need. Tally.ERP 9 users need not change the way their
business is run to adapt themselves to the package.
 Speed: Tally.ERP 9 provides the capability to generate instant and accurate reports, which assist the
management to take timely and correct decisions for the overall productivity and growth of the company.
 Power: Tally.ERP 9 allows the user to maintain multiple companies and with unlimited levels of classification
& grouping capabilities. It also allows drill down facility from report level to transaction level.
 Flexibility: Tally.ERP 9 provides flexibility to generate instant reports for any given period (month/year) or
at any point of time besides providing the facility to toggle between Accounting & Inventory reports of the
same company or between companies.
 Concurrent multilingual capability: Tally.ERP 9 offers you the exclusive capability of maintaining your
accounts in any Indian language, viewing them in another language and printing them in yet another Indian
language.
 Real time processing: Immediate posting & updation of books of accounts as soon as the transactions are
entered, thereby facilitating instant statements & Reports. It also faciliates a real-time multi-user environment.
 Versatility: Tally.ERP 9 is suitable for a range of organisations, from small grocery stores to large corporations
with international locations and operations.
 Multi-platform availability: Tally.ERP 9 is available on multiple versions of windows. It runs on a single PC
or on a network. On a network, it supports access via any combination of platforms.
Online Help: The Tally.ERP 9 Online Help (Alt+H) provides instant assistance on basic and advanced
features or any other relevant topics of Tally.ERP 9.
 Learning Tally.ERP 9

 Tally.NET: is an enabling framework which establishes a connection through which the remote user can
access the client’s data without copying / transferring the data.
 Remote Access: Tally.ERP 9 provides remote capabilities to access the data from anywhere and anytime.
 Control Centre: works as an interface between the user and Tally.ERP 9 installed at different sites and
enables the user to centrally configure and administer Site/User belonging to an account.
 Support Centre: allows a user to directly post his support queries on the functional and technical aspects
of the Product.
 Auditor’s Edition: Tally.ERP 9 offers a special Auditors’ Edition of Tally.ERP 9, which provides auditing and
compliance capabilities exclusively for Chartered Accountants.

1.1.2 Functional Features of Tally.ERP 9

Basic Accounting Basic Inventory
Complete book-keeping Stock categories
Books, registers and statements of accounts Stock query by stock group, or stock category
General ledgers Multiple godowns
Accounts receivable and accounts payable Stock transfers to godowns and branches
Flexible voucher numbering Multiple stock valuation methods
Flexible classification of account heads Batch-wise/Lot-wise, including expiry date handling
Panoramic view Alternate units of measure and tail units
Drill-down display Tracking through receipt notes/delivery notes/rejections
inwards/rejections outwards
Database reporting Additional costs incurred on purchase
Voucher and cheque printing Movement/Profitability analysis Party-wise/Item-wise/
Stock Group-wise
Columnar reports Customisable sales invoices using price lists with
multiple prices
Bank reconciliation Sales and purchase order processing
Cash flow statement

Advanced Accounting Advanced Inventory

Multiple companies Stock items classified as raw materials, work-in-
process, finished goods
Multi-currency Bill of Material with auto-adjustment of stocks
Multiple financial years Job-working concepts, including sub-contracting
Comparison of data using multi-columnar reporting Additional cost of manufacturing with notional value
and percentage
Memo vouchers CENVAT support
Post-dated vouchers Reorder levels
User-defined voucher types Stock ageing analysis
 Computerised Accounting

Advanced Accounting Advanced Inventory

Sales and purchase extracts Batch related stock reports
Point of Sale (POS)
Daily balances and transaction values/ Interest calculations Excise/ VAT/ Central Sales Tax (CST)/ Tax Collected
at Source (TCS) related Inventory transactions and
reports
Percentage-based reporting
Ratio analysis
Value Added Tax (VAT)/ Central Sales Tax (CST)
Service Tax (ST)
Tax Deducted at Source (TDS)
Tax Collected at Source (TCS)
Excise
Payroll

1.1.3 Technology Advantages

Simple and rapid installation: Tally.ERP 9 has a simple, menu-driven installation proce- dure. The user can
install the program files on any drive if the hard disk has partitions. The user can also specify the name and
directory location of the program files. Tally.ERP 9 uses minimum hard disk space in the local drive. Its installation
on the local disk takes just a few seconds.
Unlimited multi-user support: A multi-user version of Tally.ERP 9 can be installed on a network, having any
number of computers with different operating systems such as Win 98, NT, 2000, XP etc.
Internal backup/restore: Tally.ERP 9 has an in-built, user-friendly ‘backup and restore’ option. It helps the user to
take a backup of one or more companies or all companies, in a single directory, in the local hard disk, or in any
external media.
Data reliability: Tally.ERP 9 offers reliable data. It uses a flexi-field, flexi-length, self-indexed, weighted file
structure for an extremely compact and fast database. Tally.ERP 9 is robust. Tally.ERP 9 uses signalling quality
data integrity checks, at regular levels, to ensure the complete reliability of data.
User-defined security levels: Tally.ERP 9 offers high levels of security. Users can define multiple levels of
security according to their requirements. Every authorised user in the company can have an individual password,
with rights to use specific features only. The user with the administrator level password will have full access and
can set controls for other users.
Data security: Tally.ERP 9’s data integrity checks ensure that there are no external changes to the data.
Tally.ERP 9 also uses a binary encoding format of storage to prevent devious grouping of information.

Tally audit: The Tally.ERP 9 audit feature provides the user with administrator rights and the capability to check
the entries made by the authorised users and alter these entries, if necessary. Once the entries are audited,
Tally.ERP 9 displays the altered entries, if any, along with the name of the user, who has altered the entry, and the
date and time of the alteration.
Learning Tally.ERP 9

TallyVault: Tally.ERP 9 offers a data encryption option called TallyVault. Without the valid TallyVault password,
the data cannot be accessed. Tally.ERP 9 follows the DES (Data Encryption Standard) encryption method to
safeguard the data.

Removal of data into a separate company: Tally.ERP 9 allows users to maintain a company for any
number of financial years. Once the books of accounts have been completed for the earlier financial years,
the user can split the company data into multiple companies as per financial periods required. The user can
specify the date from which the company has to be split and Tally.ERP 9 will split the company to form two
companies as per periods specified. Once the data has been split, the closing balance of the first period
(first company) becomes the opening balance for the next period (second company).

Multi-directory for company management: The user can create multiple directories to store data. The
data stored in these directories can be accessed directly in Tally.ERP 9, by specifying the path.

Import/Export of data: Any transaction can be exported and imported to other software after suitably
altering the current structures to accept the Tally.ERP 9 data structure. Data can also be imported to Tally.
ERP 9 by writing a TDL program. The data which is to be exported from Tally.ERP 9 can be in XML, HTML or
ASCII format.

Data Synchronization: Synchronization is the process of exchanging Tally.ERP 9 data between two or
more locations. This process enables a branch office to send its data to the head office, over the Internet or a
private network.

Graphical analysis of data: Tally.ERP 9 provides graphical analysis of data which helps the user to perform
deeper analysis. The user can generate graphical analysis reports such as Sales register, Purchase register,
Ledgers, Funds flow, Cash flow, Stock Item registers and so on. This helps the management to quickly
judge performance and be better prepared for difficult times.

ODBC (Open Database Connectivity) compliance: It allows other programs to use data from Tally.ERP
9, directly.

Thus, any program such as MS-Excel or Oracle, which is ODBC compliant, can use data from Tally.ERP 9.
Data connectivity is dynamic, which means that any update in Tally.ERP 9 is reflected in real time in other
ODBC compliant software. The user can also extract data from Tally.ERP 9 and design his/her own report
formats in other ODBC compliant software.

Protocol support: Tally.ERP 9 provides protocol support for HTTP, HTTPS, FTP, SMTP, ODBC and raw
sockets with data interchange formats such as XML, HTML with XML islands, SOAP and related formats.
Protocol refers to a mecha- nism by which information (data) can be put into or taken from Tally.ERP 9.
Formats refer to the standard for informa- tion to be generated from Tally.ERP 9 or from other applications
which can exchange data with Tally.ERP 9.

Direct web browser access: While working on Tally.ERP 9, the user can directly log on to the Tally website,
provided he/she has access to the Internet. The website lists details of all the facilities offered by Tally.
ERP 9. The user can also download the latest release of Tally.ERP 9 as and when it is available. The Tally
website also offers Tally Chat, by which a user can communicate with a Tally representative and get required
information.
 Computerised Accounting

Ability to preview and publish reports and documents on the Internet: Companies which want to
publish reports and price lists on their website can do so directly from Tally.ERP 9.

E-mail Facility: Tally.ERP 9 facilitates the mailing of any Tally.ERP 9 report or document.

Multilingual capability: Tally is the world’s first accounting and inventory software with multilingual capability.
Currently, Tally.ERP 9’s multilingual capability extends to 12 languages which include nine Indian languages
(Hindi, Gujarati, Punjabi, Tamil, Telugu, Marathi, Kannada, Malayalam and Bengali), Arabic, Bahasa Melayu
and Bahasa Indonesia. Tally.ERP 9 enables you to enter data in one language and have it transliterated into
different languages. You can generate invoices, purchase orders or delivery notes in the language of your
choice after entering data for the same in any of the nine specified languages. Also, the phonetic keyboard
allows you to spell the term phonetically based on how it sounds and Tally.ERP 9 displays the data in the
language selected after transliteration.

Point of Sale (POS): POS is an acronym for Point of Sale. Point of Sale can be a retail outlet, a check out
counter in a shop, or any other location where a sales transaction takes place. It is a computerised cash
register which adds up the sales totals, calculates the balance to be returned to buyer and automatically
adjusts the inventory level to reflect the quantity sold. The equipment required for POS to work effectively
are cash registers, card readers, barcode scanners and so on.
Getting Started with Tally.ERP 9
 Getting Started with Tally.ERP 9
1.2 Creating a Company in Tally.ERP 9
The first step towards working with Tally.ERP 9 is to create a ‘company’. A ‘company’ in Tally.ERP 9 is a central
repository where you can maintain all the financial records of your business, and from where you can extract the
required financial reports and statements.
The procedure to create a company is explained below. To facilitate easier understanding, we have illustrated the
creation of a company named Vridhi Traders:

1.2.1 Go to Gateway of Tally > Company Info. > Create Company

The Company Creation screen appears as per Figure 1.1

Figure 1.1 Company Creation Screen

 Learning Tally.ERP 9

The fields in the company creation screen and the information to be filled in each of them are explained below. To
navigate between the fields, use the Enter/Tab/Arrow Keys, or Mouse clicks.
 Directory: The path to the location of Tally.ERP 9 data is displayed here. By default, the path provided while
installing Tally.ERP 9 will be displayed. However, you can press backspace and specify the location in which
you want the data to be stored.
 Name: Provide a name for the company that is being created. In this example, we are creating a company
named Vridhi Traders.
 Primary Mailing details: The mailing name and address details are picked from here for any report such
as balance sheet and statements of accounts.
 Mailing Name: The name provided for the company in the name field is automatically displayed here.
However, you can change it as per requirements. The name specified here will be used for mailing
purposes. In this example, Vridhi Traders is retained.
 Fill in the company’s address.
 Country: Select the country in which the company is located. This will allow users to choose the statutory
capabilities available for that country. In this example, the country selected is India.
 Fill in the relevant numbers in the Telephone No. and Mobile No. fields.
 E-Mail: Fill in the company’s official e-mail ID here. This will be used while e-mailing reports and
statements from Tally.ERP 9.

1.2.1.1 Books and Financial Year Details:

 Financial Year from: This refers to the twelve-month accounting period of the company. For Vridhi
Traders, the financial year begins on 1-7-2016.
 Books beginning from: The date provided in the aforesaid field will be automatically displayed here. In
the example, the date is retained. However, if you have started with maintaining your books of accounts
with Tally.ERP 9 mid-year, the required date can be set accordingly. Tally will not allow you to record the
transactions for dates preceding the date entered in the books beginning from field.

1.2.1.2 Security Control:

 TallyVault Password (if any): Once you enter a password here, you will need it to open your company
each time. The name of a company that is locked using TallyVault will be hidden with the asterisk ‘*’
symbol. You need to provide the TallyVault password to open and access the company.
 Repeat Password: Here, enter the password entered in the TallyVault field, as a confirmation.
 Use Security Control?: Setting this option to Yes will allow you to define the access rights for each user
who will access your company. This feature is explained in forthcoming chapters.

1.2.1.3 Base Currency Information:

 Base Currency Symbol: The base currency symbol will be filled as per the country selected.
 Formal Name: The currency’s formal name will be filled here. In this example, it is INR (Indian Rupees).
 Suffix Symbol to Amount: For some countries, the currency symbol is specified after the amount. This
option can be enabled for such countries, so that the currency symbol may be printed after the amount.
However, Vridhi Traders is an Indian company and hence this option is set to No.
 Add Space between Amount and Symbol?: Tally.ERP 9 will provide a single space between the
amount and the currency symbol, if this option is set to Yes. For e.g.: KSh 5,000. Notice the space
between symbol and the amount.
 Show amounts in Millions?: If the company’s financial statements need to have their values expressed
in terms of millions, set this option to Yes.
 Getting Started with Tally.ERP 9

 Number of Decimal Places: By default, the number of decimal places for the base currency is set to
2. However, you can have up to 4 decimal places. The Indian currency has 2 decimal places whereas
certain other countries require 3 decimal places and so on.
 Word representing amount after decimal: The symbol for amounts expressed in decimals will be set
by default. For India, it is Paise.
 Decimal Places for printing amounts in Words: You can specify the number of decimal places for
printing the amount in words. This number should be equal to or lesser than the number specified in
number of decimal Places field. For example, if the currency has up to 3 decimal places, the value to be
printed in words can be restricted to 2 decimal places.

Note

Base currency information is set to the default based on the country selected.

The Completed Company Creation screen appears as per Figure 1.2

Figure 1.2 Company Creation screen of Vridhi Traders

The message Accept? Yes or No will be displayed.

Press Y or Enter to save the details.
 Getting Started with Tally.ERP 9

Notice that Indus Enterprises is highlighted. This indicates that it is the currently selected company from the list of
open companies. You can click on the name of another company to make it as the currently open company.

1.2.2 Select a Company

By ‘selecting’ a company, you are essentially opening the company it in Tally.ERP 9.
1. Go to Gateway of Tally > F3: Company Info. (Alt+F3)
2. Click Select Company, or press S. Tally.ERP 9 displays the Select Company screen, with a List of Companies
that are available in the location specified. You can also press F1 to get to the Select Company screen.

1.2.3 Shut a Company

By ‘shutting’ a company, you are essentially closing a company.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Shut Company. Tally.ERP 9 displays the Close Company screen, with the List of Companies that are
open. You can also use Alt+F1 from the Gateway of Tally to get to this screen.

1.2.4 Alter Company Details

By ‘altering’ a company, you are modifying the details which you have provided in the Company Creation screen.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Alter or press A. Tally.ERP 9 displays the Select Item screen, with a List of Companies that are available
in the location specified. Select the company which you need to alter and press Enter to view the Company
Alteration screen. Alter the company details as required and accept the screen.
IntroductiontoTally.ERP9Features and
Configurations
 Learning Tally.ERP 9

1.3 Introduction
The ‘Features’ in Tally.ERP 9 are a set of capabilities, provided as options, that enable you to maintain financial
records as per your business needs. The company features menu can be found by clicking F11: Features on the
vertical button bar. The effect of these options will be reflected only in the company for which they are enabled.
The ‘Configurations’ in Tally.ERP 9 are options that help you modify the way a feature works. The configuration
menu can be found by clicking F12: Configure on the vertical button bar. The options when enabled, will have an
effect on all the companies in the data directory.
Once you have created a company in Tally.ERP 9, the next step would be to setup Tally.ERP 9’s ‘Features’ and
‘Configurations’.
There are sets of options that help you optimise your usage of Tally.ERP 9.

1.3.1 Features
The Company Features section in Tally.ERP 9 is divided into the following major categories:

 Accounting Features
 Inventory Features
 Statutory & Taxation
 TSS Features
 Add-On Features
You can press F11: Features from any screen of Tally.ERP 9 or you may also click the F11: Features button
available in the vertical button bar, to enable the required features. The features are specific only to the company
currently in use (for which the said feature is enabled), thereby allowing flexibility of independently enabling different
features for each of the companies.
Load the company by name Vridhi Traders and go to Gateway of Tally > press F11: Company Features
The Company Features Screen appears as per Figure 1.3

Figure 1.3 F11 Company Features Menu Screen

There are various settings available under accounting features, inventory features and statutory & taxation features,
which facilitate the entry of additional information during voucher entry.
 Introduction to Tally.ERP 9 Features and Configurations

Note

TSS Features option is not active, to activate the same you need to enable the Security Control option in
Company Alteration screen.

1.3.2 Accounting Features

The Accounting Features consists of configurations/functionalities, which generally affect accounting transactions
and reports.
The Accounting features section is further divided into six sub-sections, namely:
 General
 Outstandings Management
 Cost/Profit Centres Management
 Invoicing
 Budgets and Scenario Management
 Banking Features
 Other Feature
Go to Gateway of Tally > F11: Company Features > Accounting Features or click F1: Accounting Features
The Accounting Features Screen appears as per Figure 1.4

Figure 1.4 F11: Accounting Features screen

 Enable the required features

 Press Enter to accept

1.3.3 Inventory Features

The Inventory features comprise of configurations/functionalities pertaining to inventory transactions and reports.
The Inventory features section is further divided into seven sub-sections, namely:
 Learning Tally.ERP 9

 General
 Storage & Classification
 Order Processing
 Invoicing
 Purchase Management
 Sales Management
 Other Features
Go to Gateway of Tally > F11: Company Features > Inventory Features or click F2: Inventory
The Inventory Feature screen appears as per Figure 1.5

Figure 1.5 F11: Inventory Features Screen

Enable the required features

Press Enter to accept

1.3.4 Statutory & Taxation Features

The Statutory & Taxation features comprise of configurations/functionalities pertaining to statutory compliances
available in Tally.ERP 9. The Statutory features are country specific and strictly depend upon the country selected
in the Company Creation screen.

1.3.5 TSS Features

The Tally Software Services (TSS) screen comprises information about Connection, Remote Access and SMS
Access details of a company. The TSS Features will be available only when Use Security Control is set to Yes
in Company Creation screen.
 Learning Tally.ERP 9

Go to Gateway of Tally > F11: Company Features > TSS Features or click F4: TSS
1.3.6 Add-On Features
Customers, to meet their accounting requirements, may purchase customised solutions from Tally Partners.
Depending on the customer requirement, the solution provider formulates the solution. In some cases, a solution
may require the introduction of a new feature in Tally.ERP 9 to support the functionality. F6: Add-On Features is a
place holder for the features provided in the Add-ons/Local TDLs loaded.
Go to Gateway of Tally > F11: Company Features > F6: Add-On Features
1.3.7 Data Management and Security Features
The data management and security features comprises of configurations/functionalities pertaining to:
 Taking backup of a company
 Restoring the backup of a company
 Splitting a company
 Exporting and importing data using Tally.ERP 9
 E-Mailing
 Data Security

1.3.8 Payroll Features

Tally.ERP 9 integrates payroll features with accounting features, and simplifies payroll processing.
Tally.ERP 9 enables users to set up and implement salary structures, ranging from simple to complex, as per
the organisation’s requirements. Users can also align and automate payroll processes and integrate the same
with other accounting applications. Tally.ERP 9 also supports payslip printing, recording of attendance, leave, and
overtime. Users can also generate gratuity and expat reports.

1.3.9 Configurations

In Tally.ERP 9, F12: Configurations are provided for Accounting, Inventory & printing options and are user-
definable as per the business’ requirements.
The F12: Configurations are applicable to all the companies residing in the Tally.ERP 9 data Directory. The F12:
Configuration options vary depending upon the context, i.e., if you press F12: Configure from voucher entry
screen, the respective F12: Configurations screen is displayed.
Go to Gateway of Tally > F12: Configure
Maintaining Chart of Accounts in
Tally.ERP 9
 Learning Tally.ERP 9

1.4 Introduction
A ‘Chart of Accounts’ is a list that depicts the accounts that a business uses to record transactions in its books of
accounts.
Tally.ERP 9 will put together your business’ chart of accounts based on the ‘Ledgers’ and ‘Groups’ that you identify.

1.4.1 Ledgers and Groups

1.4.1.1 Ledgers
A ‘Ledger’ is an account head. For instance, the sales account head will be called a ‘Sales Ledger’ in
Tally.ERP 9. Similarly, a customer would be an account head, and will be called a ‘party ledger’.
You can create ledgers specific to your business transactions.
For a newly created company, there are two pre-defined ledgers available in Tally.ERP 9:
 Cash
 Profit & Loss A/c

To view the list of ledgers, go to Gateway of Tally > Accounts Info. > Ledgers > Display (Multiple Ledgers) >
Select All Items.
The Multi Ledger Display Screen appears as per Figure 1.6

Figure 1.6 List of Pre-defined Ledgers

1.4.1.2 Groups

A ‘Group’ is the accounting group under which ledgers of the same nature can be classified. For instance, Tally.ERP
9 has a default Group ‘Sales Accounts’, under which all the sales ledgers will be classified.
There are 28 pre-defined groups in Tally.ERP 9, which feature in the chart of accounts of many organisations. Out
of these, 15 groups are primary groups and the remaining 13 are sub-groups.
Among the 15 primary groups, 9 groups are balance sheet items and the remaining 6 groups are Profit & Loss A/c
items. You can use these groups to build your chart of accounts, as well as create and used group’s specific to your
business transactions.
 Maintaining Chart of Accounts in Tally.ERP 9

However, you may also alter the nomenclature of these 28 groups.

To view the list of the 28 groups, known as the List of Accounts, go to Gateway of Tally > Accounts Info. >
Groups > Display (Multiple Groups) > Select All Items.
The Multi Group Display Screen appears as per Figure 1.7

Figure 1.7 List of Multiple Groups Screen

Out of the 15 Primary groups, the following appear in the Profit & Loss Account:
1. Sales Accounts
2. Purchase Accounts
3. Direct Incomes or Income (Direct)
4. Indirect Incomes or Income (Indirect)
5. Direct Expenses or Expenses (Direct)
6. Indirect Expenses or Expenses (Indirect)

1.4.1.3 Ledger Creation

In Tally.ERP 9, we can create the ledgers in two ways given below:
I. Single Ledger Creation: Here we can create one ledger at a time.
II. Multiple Ledger Creation: Here we can create different ledgers at one go and also ledgers which belong to
particular group.

I. Single Ledger Creation

 Learning Tally.ERP 9

Creation of Proprietor’s Capital Account ledger from single ledger creation screen.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single Ledger Creation)
2. Enter Name as Proprietor’s Capital Account
3. Select Capital Account from the List of Groups
The Ledger Creation Screen appears as per Figure 1.8

Figure 1.8 Ledger Creation screen — Proprietor’s Capital Account

4. Press Y or Enter to accept the screen

Tally.ERP 9 displays the total debit and credit opening balances in the right upper corner of screen while the ledgers
are being created in the ledger creation screen. This is to avoid differences in the opening balance.
II. Multiple Ledger Creation
Now let us create the following ledgers using the Multi Ledger Creation option:

To create Multiple Ledgers at once, follow the below given steps:

1. Go to Gateway of Tally > Accounts Info > Ledgers > Multiple ledgers > Create
2. From Under Group field select All Items

Note

If you select Purchase Account in the ‘Under Group’ field, then the ledger will be created under Purchase
Account Head.

3. Under Name of Ledger enter the name as Kaltronic Ltd

 Learning Tally.ERP 9

4. Select as Sundry Creditors from the List of Groups

5. Press Enter and move to next line as there is no opening balance
6. Similarly, select the other ledgers as shown in figure 1.9:

Figure 1.9 Multi Ledger Creation Screen

7. Press Enter or Y to Accept

Now that we have learnt how to create ledgers under Tally.ERP 9’s default pre-defined groups, let us move on to
understand how to make alterations to ledgers that are already created.

Altering and Displaying Ledgers

Now, go to Gateway of Tally >Accounts Info>Ledgers > Select Display under single ledger, you will see that
the List of Ledgers.
You can also Alter ledgers from Accounts Info. > Ledgers > Alter (Multiple Ledgers). Deleting Ledgers
You can delete a ledger, by pressing Alt+D in the Ledger Alteration screen.
 Maintaining Chart of Accounts in Tally.ERP 9

You will not be able to delete a ledger, once the financial transactions (vouchers) have been entered (excluding the
Opening Balance). If there is a need to delete a ledger with any financial transactions, all the transactions must be
deleted first by pressing Alt+D.

1.4.1.4 Group Creation

In Tally.ERP 9, there are 28 predefined groups, this mean that it is not necessary to create the Account Group in
Tally.ERP 9. However, considering the different requirement of an organisation and its nature, Tally.ERP 9 has also
provided flexibility to create the account group, if need be.
Group creation is similar to ledger creation in Tally.ERP 9. As with ledgers, there are two ways of creating groups:
I. Single Group Creation: Involves creation of a single group at a time
II. Multiple Group Creation: Involves creation of multiple groups at a time
Single Group Creation
The group to be created, and the primary group under which it has to be classified, is specified in the table below:

Group to be created Classification

Debtors – North Sundry Debtors
To create the group,
1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Single Group)
2. Enter Name as Debtors - North
3. Against the field Under select Sundry Debtors from the List of Groups
The Group Creation Screen appears as per Figure 1.10

Figure 1.10 Group Creation — North Debtors

Note: To create a Multi Group in Tally.ERP 9, go to Gateway of Tally >. Accounts Info > Groups > Under Multiple Groups > Select
Create.
Accounting Vouchers
 Learning Tally.ERP 9

1.5 Introduction
In accounting terms, a voucher is a document containing the details of a financial transaction. For example, a
purchase invoice, a sales receipt, a petty cash docket, a bank interest statement, and so on. For every such
transaction made, a voucher is used to enter the details into the ledgers to update the financial position of the
company. This feature of Tally.ERP 9 will be used most often.
Tally.ERP 9 follows the Golden Rules of Accounting:

Golden Rules of Accounting

Type of Account Debit Aspect Credit Aspect
Personal The receiver The giver
Real What comes in What goes out
Nominal All Expenses and losses All incomes and gains
A voucher entry screen in Tally.ERP 9 comprises of the following sections:
Type of Voucher
It is essential to check if you are using the right voucher for the transaction. You can change the voucher type by
selecting a new type from the button bar, if required. For example on the selection of a payment voucher, Tally.
ERP 9 automatically displays the list of voucher types you have created. You can select the voucher type required.
Voucher Number
Tally.ERP 9 automatically sets the voucher number for you. You can change the voucher number manually, if
required.
Reference
You can enter a reference of your choice. A purchase order number or an invoice number can be entered as a
reference.
Date of Voucher
The date of the voucher you enter is displayed at the top-right of the voucher creation screen. The date is taken
initially from the Gateway of Tally - Current Date and you may need to change it frequently to ensure that the
vouchers are dated as you want.
Effective Date
A voucher type can be configured to allow for an effective date. The line below the date of voucher displays the date
when the voucher will be effective. This will be available only if the effective date option is activated in the particular
voucher type.
Particulars
This is where you enter the ledger names and the debit and credit amounts. Each line displays a prompt of Dr or
By for debit entries and Cr or To for credit entries.
Depending on the voucher type, Tally.ERP 9 selects either ‘Dr’ or ‘Cr’ for the first prompt, which you cannot change.
Thereafter, you can change the prompt (if necessary) by typing over it with a ‘D’ or a ‘C’. To select a ledger, type
the first letter of its name. Tally.ERP 9 then displays a List of ledger accounts beginning with the letter highlighted.
Only ledgers suitable for the voucher type are displayed. The revised current balance is shown after the amount is
entered. On selecting the next ledger, Tally.ERP 9 suggests the balancing amount as the value to be entered, which
may be accepted or typed over. The voucher entry cannot be completed until the debits equal the credits.
Narration
Here you type whatever appropriately describes the transaction. Remember, you can have a separate narration for
each line of particulars, if you configure the voucher type in that way.
Once the narration is complete, press Enter to bring up the Accept? The box. Once you accept the data, Tally.ERP
9 presents another voucher entry screen.
 Accounting Vouchers

1.5.1 Accounting Vouchers

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform a different job. The
standard accounting vouchers are:
 Contra Voucher (F4)
 Payment Voucher (F5)
 Receipt Voucher (F6)
 Journal Voucher (F7)
 Sales Voucher/Invoice (F8)
 Credit Note Voucher (Ctrl+F8)
 Purchase Voucher (F9)
 Debit Note Voucher (Ctrl+F9)
You can alter these vouchers to suit your company, and also create new ones. Read ahead to understand the
function of each voucher type. The following exercises are sample entries for understanding voucher entry in Tally.
ERP 9.
Let us understand how to record accounting transactions in Tally.ERP 9, with examples from the books of accounts
of Vridhi Traders.
Maintaining Inventory in Tally.ERP 9
 Learning Tally.ERP 9

1.6 Introduction
The inventory system operates in much the same way as the accounting system. In the place of accounting groups,
‘Stock Groups’ and ‘Stock Categories’ are used, and in the place of ledgers, ‘Stock Items’ are used.
Stock Item
A Stock Item is a unit of the goods that a business trades in. For instance, Vridhi Traders deal in electronic goods.
‘Television’ will be a ‘Stock Item’ for them.
Units of Measure
Stock items are purchased and sold on the basis of quantity. The quantity in turn is measured in units. In Tally.
ERP 9, such goods are quantified using ‘Units of Measurement’. Units of Measure can be ‘simple’ or ‘compound’.
Examples of simple units of measure are: numbers, metres, kilograms, pieces, etc. Examples for compound units
of measure are: a box of 10 pieces, etc.
Stock Group
A Stock Group is similar to the groups we create for accounting. Stock Items of similar nature, brand, etc. can be
classified under a single stock group. In the example above, the stock group for ‘Television’ can be the brand, like
‘Sony’, ‘Videocon’, ‘Philips’, etc.
Godowns (Store house)
A place where stock items are stored is referred to as a “Godown”. For example, a warehouse. You can obtain stock
reports for each godown and account for the movement of stock between Godowns (Store houses).

1.6.1 Creating Inventory Masters

Let us take the example of Vridhi Traders who sell Televisions and Music Systems. Given below is the structure
of items being sold.

Main Stock Group: Television

Stock Group Stock Items
Sony 29 inch TV
Sony TV
Sony 25 inch TV
Hiteq 29 inch TV
Hiteq TV
Hiteq 25 inch TV
Samsung 29 inch TV
Samsung TV
Samsung 25 inch TV

Main Stock Group: Music Systems

Stock Group Stock Item
Sony Tape Recorder
Sony Music systems
Sony CD Player
Samsung Tape Recorder
Samsung Music systems
Samsung CD Player
Table 1 List of Stock Groups and Stock Items
Vridhi Traders has two Godowns, the Onsite Godown and the Warehouse Godown. The Unit of Measure will be
Numbers (Nos.).
To facilitate easier understanding, the creation of the aforesaid inventory masters is illustrated for Vridhi Traders,
in the following order:
 Maintaining Inventory in Tally.ERP 9

1. Stock Groups
2. Godowns
3. Units of Measure
4. Stock Items
1.6.2 Creating a Stock Group
The grouping structure in Tally.ERP 9 is as follows:
1. Television (main stock group, to be grouped under Primary)
 Sony TV – stock group under Television
 Hiteq TV – stock group under Television
 Samsung TV – stock group under Television
2. Music Systems (main stock group, to be grouped under Primary)
 Sony Music Systems – stock group under Music Systems
Samsung Music Systems – stock group under Music Systems Create the Stock Group – Television under Primary
1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single Stock Group)
2. Enter the Name for the stock group as Television
3. Classify the group under Primary
4. Set the option Should Quantities of items be Added to Yes
The Stock Group Creation Screen appears as per Figure 1.11

Figure 1.11 Stock Group Creation — Television

5. Press Enter to Accept the Screen
 Learning Tally.ERP 9

Create the stock group by name Music Systems under Primary.

Create Sony TV under the stock group - Television

Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single Stock Group)
1. Enter the Name for the stock group, that is, Sony TV
2. Classify the group under Television
3. Set the option Should Quantities of items be added to Yes
The Stock Group Creation screen appears as per Figure 1.12

Figure 1.12 Stock Group Creation — Sony TV

4. Press Enter to Accept the Screen
1.6.3 Creating a Unit of Measure
As mentioned in the example, the Unit of Measure will be Numbers (Nos)
To create the Unit of Measure,
Go to Gateway of Tally > Inventory Info. > Units of Measure > Create
1. Enter the Symbol to be used for the Unit of Measure, that is, Nos
2. Enter the Formal Name, that is, Numbers
3. Specify the number of decimal places. Here, it is zero

4. Press Enter or Y to accept the screen

 Learning Tally.ERP 9

1.6.4 Creating a Stock Item

As per the example, create the stock item Sony 29 inch TV. To create the same,
Go to Gateway of Tally > Inventory Info. > Stock Items > Create

Press F12 from stock item creation screen and set the option Allow Advanced entries in Masters to No.

1. Enter the Name for the stock item, that is, Sony 29 inch TV
2. Group the Stock Item under Sony TV
3. Select the Units as Nos
The Stock Item Creation Screen appears as per Figure 1.13

Figure 1.13 Stock Item Creation — Sony 29 inch

1.6.5 Godown

Locations/Godown are places where stock items are stored. You can monitor the Godown-wise movement of
stock by creating multiple Godowns.
You can create Godowns as shown below:

Against the field Action to be performed

Name Enter as Onsite
Under Select as Primary
 Allow Storage of materials? Set to Yes
Do not make any changes in the Use for Fields
Tally.ERP 9 has a default Godown named Main Location. You can alter Tally’s default Godown and create a new
one.
Tally.ERP 9 permits the creation of any number of Godowns, under groups and subgroups to match the structure
you need.
To create Godown in Tally.ERP 9, follow the below given steps:
Step 1: Activate Godown Feature in Tally.ERP 9
 To activate Godown Feature, Go to Gateway of Tally > Press F11 > Company Features > F2:
Inventory Features
 Set the option Maintain Multiple Godown to Yes
 Save the Inventory Features Screen

Step 2: Creation of Godown in Tally.ERP 9

 Go to Gateway of Tally > Inventory Info. > Godowns > Create
The Godown creation screen is as per Figure 1.14

Figure 1.14 Completed Item Creation screen

Note

The term Godowns is displayed in the Inventory Info. Menu, if India/SAARC is selected under ‘Use Accounting
Terminology of’ in General Configuration (Gateway of Tally > F12: Configure) screen. If International is
selected, the term Locations is displayed.

Book 1.indb 129 4/5/2017 1:34:33 PM

Inventory Vouchers
 Learning Tally.ERP 9

1.7 Introduction
Tally.ERP 9 inventory transactions perform the same function in the inventory system as accounting transactions do
for the purpose of recording accounting transactions. They are the means by which you enter transactions relating
to inventory. The transactions record entries relating to the issue and receipt of stock, the transfer of stock between
locations, and physical stock adjustments. The following inventory transactions are available in Tally.ERP 9:
 Purchase Order (Alt+F4)
 Sales Order (Alt+F5)
 Rejections Out (Alt+F6)
 Rejections In (Ctrl+ F6)
 Stock Journal (Alt+F7)
 Delivery Note (Alt+F8)
 Receipt Note (Alt+F9)
 Physical Stock (Alt+F10)

1.7.1 Voucher Configuration

To use above given vouchers,
 Go to Gateway of Tally > Press F11:Company Features > F2: Inventory Features
 To enable Delivery Note, Receipt Note and Rejections Voucher, set Yes to Use Tracking Numbers
(enables Delivery and Receipt Notes) and Use Rejection Inward and Outward Notes.
 Go to Gateway of Tally > F12: Configuration > Invoice/Orders Entry – Set Provide Complete
Accounting Allocations in Order/Delivery Note to Yes
 Make sure that Inventory Values are affected? is set to Yes in all ledger accounts under the
groups sales accounts and purchase accounts
10.2.1 Inventory Vouchers
Purchase Order (Alt+F4): A Purchase Order is an order placed by a business entity with a supplier for the delivery
of specified goods at a given price and at a predetermined time.
Receipt Note (Alt+F9): Receipt Note voucher type is used for recording goods received from the supplier.
Rejections Out (Alt+F6): The Rejections Out voucher records goods that are rejected and returned to a supplier.
Sales Order (Alt+F5): Sales Order is an order placed by a customer for the delivery of specified goods at a given
price and at a predetermined time.
Delivery Note (Ctrl+F8): A Delivery Note is used for recording goods delivered to a customer.
Rejection In (Ctrl+F6): A Rejection In voucher is used to record goods that are rejected and returned by the
customer.
Let us understand how to record inventory transactions in Tally.ERP 9, with examples from the books of accounts
of Vridhi Traders.
Stock Journal (Alt+F7)
To record the consumption and adjustment of goods and to transfer stock from one godown to another, a stock
journal voucher is used.
Data Backup and Restore
 Learning Tally.ERP 9

1.8 Introduction
Data on the computer is vulnerable to different types of threats and any data lost will be disastrous for the
organisation. Hence, there is a need to store data at a different location by taking a backup.

1.8.1 Backup
Tally.ERP 9 helps users to take back up of one or more companies in a single directory. Let us understand the
backup feature of Tally.ERP 9 using the example of Vridhi Traders.
To take a single or multiple company data backup,
1. Go to Gateway of Tally > Company Info. > Backup

Figure 1.15 Company Info. Screen

2. Enter Source and Destination of the backup as per Figure 1.16

Figure 1.16 Selecting Source and Destination for Backup

 Data Backup and Restore

3. Press Enter and the List of Companies available for backup will appear. Select the required companies for
which data backup needs to be created, as per Figure 1.17

Figure 1.17 Selecting Companies to Backup

4. Once the required companies are selected, select End of List and accept the screen. The backup file is
created with the name TBK900.001, as shown in the following Figure 1.18

Figure 1.18 TBK File

5. TBK900.001 is stored in the D drive. The same file can be restored as and when required.

Note

Select All items from the list of companies, if you want to take a backup of all the companies at one shot

1.8.2 Restoring Data from a Backup File

The Restore functionality allows you to restore the data backup taken earlier.
Remember the following points before restoring data backup.
1. Do not restore old or irrelevant data.
2. Do not restore data from a damaged media.
3. Do not restore data in the same folder as the existing data, since it may overwrite the existing data.
For restoring data from a backup file, follow the steps given below:
 Learning Tally.ERP 9

1. Go to Gateway of Tally > Company Info. > Restore, you will get the following Figure 1.19

Figure 1.19 Destination and Source Details Screen

2. Destination field: Enter the folder path where data backup needs to be restored.
3. Source field: Enter the folder path where data backup file or auto backup files for multiple companies are
stored. The path specified can be on the same storage device/external storage device or a storage device on the
network.
4. Select the required companies from the list of companies and then restore

Figure 1.20 Restores Companies on Disk

5. Select End of List to complete the selection and accept the screen.