Fundamentals of

Tally. ERP 9
UNIT II – Fundamentals of
Tally. ERP 9
Introduction
Introduction
Introduction
Getting functional with Tally
Getting functional with Tally
Getting functional with Tally
Creation of Company in Tally.ERP 9
Creation of Company in Tally.ERP 9
Creation of Company in Tally.ERP 9
Creation of Company in Tally.ERP 9
Creation of Company in Tally.ERP 9
Creation of Company in Tally.ERP 9
Configure- F12

To know more about each component – visit -

https://help.tallysolutions.com/article/Tally.ERP9/Maintaining_Company_Data/F12_Config/F12_Configurations.htm
Account Ledgers Creation

• A ledger is the actual account head in which you identify a transaction and
must be used in all Accounting Vouchers.
• Without a ledger we cannot record any transactions.
• There are two predefined / default ledgers in Tally.ERP 9, they are
• Cash A/c
• Profit and Loss A/c

• To create a Ledger

Go to Gateway of Tally ----- Accounts Info------ Ledgers -------- Single Ledger --

--------- Create

• To alter the ledger account

Go to Gateway of Tally ----- Accounts Info------ Ledgers ---------Alter

• To delete the ledger account

Go to Gateway of Tally ----- Accounts Info------ Ledgers ---------Alter------

Delete
Journal Entries - Passing

• Accounting Voucher is the primary document in which the complete details

of accounting transaction are recorded like:
(i) Payment of salary to Employees
(ii) Withdrawal of Cash from Bank Account

• As per the classic accounting principles, all accounting transactions may be

entered in the Journal Voucher. In fact, in old days, people used only one
day book called Journal to record all transactions, cash or non-cash.

• The following are the basic voucher types, considered essential by all kinds
of business, irrespective of its nature, size or book keeping methods.

(i) Receipt: To record receipts of money by cash, cheque, bank transfers, etc.
(ii) Payment : To record payments of money by cash, cheque, bank transfers,
etc.
(iii) Journal : To record all non-cash transactions (all accounting transactions
not involving any cash or bank ledger)
(iv) Contra: To record transfer of fund between Cash and Bank accounts
Passing of Journal Entries
Passing of Journal Entries
Passing of Journal Entries
Passing of Journal Entries
Display, Alter and deletion of Ledger
Alter and deletion of Journal Entries

In case any amount entered is wrong or account used is wrong – how to modify
the data

Go to Gateway of Tally ------ Display-------- Daybook -------- Select the concern

day book------ press Enter and modify the details

Deletion of Journal Entries

Go to Gateway of Tally ------ Display-------- Daybook -------- Select the concern

day book------ press Enter ------- Alt + D (to delete the entry)
Searching Entries in Tally.ERP 9
When using Tally ERP 9 in companies dealing with large number of transactions, Tally Search features is a
handy tool to find out a particular amount, amount between a minimum and maximum or a particular word
in narration. We can do this using Range filter of Tally ERP9.

Gateway of tally------Display -------- Daybook

Searching Entries in Tally.ERP 9
Searching Entries in Tally.ERP 9
Searching Entries in Tally.ERP 9
UNIT III – Some useful
features of Tally. ERP 9
Bank Reconciliation Statement
Bank Reconciliation Statement
Bank Reconciliation Statement
Bank Reconciliation Statement
Bank Reconciliation Statement
Import data from excel to Tally
Import data from excel to Tally
Import data from excel to Tally
Import data from excel to Tally
Export tally data in Excel
• Open the data which is to be exported (Ledger/P&L or Balance sheet)
• Click Export (Shortcut Alt E)
• Press Escape (Esc)
• Select Excel as format
• Put file Name as required
• Press Enter or Cntrl A
• File is downloaded in Tally Folder
• In Tally ERP 9, it is at C:\Program Files\Tally.ERP9 and it automatically
opens
Order Processing
Order Processing
Re-order Levels and Re-order quantity
Re-order Levels and Re-order quantity
Re-order Levels and Re-order quantity
Bill wise details
Bill wise details
Bill wise details
Bill of Material
Bill of Material
Bill of Material – Single Bill of Material
Bill of Material – Single Bill of Material
Bill of Material – Single Bill of Material
Bill of Material – Single Bill of Material
Bill of Material – Multiple Bill of Material
Bill of Material – Multiple Bill of Material
Ratio Analysis
• Ratio analysis is a powerful tool for financial analysis. A meaningful
analysis of a financial statement is made possible by the use of ratios.
• Ratios are a set of figures compared with another set.
• The comparison gives an understanding of the financial position of a
business unit.
• There are a number of ratios which can be computed from a single set of
financial statements. The ratios to be computed depend on the purpose
for which these ratios are required.
• A single ratio may sometimes give some information, but to make a
comprehensive analysis set of inter-related ratios are required to be
analyzed.

View Ratio Analysis Report

• The Ratio Analysis Report is divided into two parts, Principal Groups and
Principal Ratios. Principals Ratios are the key figures that give perspective
to the ratios.
• Principal Ratios relate two pieces of financial data to obtain a
comparison that is meaningful
Ratio Analysis
Security Controls
• Data Security has been a matter of concern to the Business Owner as most
businesses depend on the confidentiality of the information.
• To secure your business data, TallyPrime offers a variety security features.
• You can password protect your company data, define security levels for
different users and do much more with the security feature in Tally.
• The administrator can give different permissions to different kind of users
based on the company's requirement.
• The company data can also be made secure using encryption using
TallyVault.

Data Security in Tally Products

• Tally offers a comprehensive security framework for authentication,
authorisation, integrity, and confidentiality of user data.
Some highlights of the security framework are described below:

1. Secure Connectivity

Tally.ERP 9 connects to Tally.Net Server using a secure multi-step handshake. The

product license and Tally Software Services (TSS) license are validated as part of
the handshake.
Security Controls
2. Secure Transmission

• Data exchanged between Tally.ERP 9 and Tally.Net Server is compressed and

encrypted with an enhanced version of the industry-recognized Triple Data
Encryption Algorithm, before the transfer process is initiated.

• Message Digests are used to detect data corruption and alteration during
transfer.

3. Secure Data Exchange

Customer data synchronization between two Tally.ERP 9 systems is controlled by

synchronisation configuration. This configuration specifies, the systems that will
participate in data exchange, the data that will be exchanged, and role of
each participating system.

The users on both systems must authorise the synchronisation configuration

before data is exchanged. Post authorisation, data is exchanged only on user
request.

Tally.NET stores encrypted data only to facilitate synchronization. Data is

deleted from the Tally.NET Server after synchronisation.
Security Controls
4. Secure Storage

• Tally.ERP 9 has the provision to encrypt and store customer data on disk using
TallyVault.
• Customer data handled by Tally.NET Server is encrypted, both in memory and
on disk.

5. Secure Application Access

• Tally.ERP 9 opens a network port only when the user requests a network
service. The port is open only for the duration of data transfer.

• No other system, third party or Tally, can open the network port or initiate data
transfer.
Security Controls
Types of Security Levels
By default, there are two types of security levels. One is the owner and the
other is Data Entry.

Owner – The owner has the full access rights which will enable him to work
with all the features of Tally.ERP 9
Data Entry- Data Entry has restricted access but the administrator can assign
or restrict the access on need basis.
Security Controls

voucher other than Receipt or Sales Vouchers , Tally.ERP 9 will display the error “No access allowed!
Security Controls

Therefore, according to the example above, as Arun has been Disallowed access to Payment Voucher, he
cannot record transactions using Payment Vouchers, but he can still Create a Voucher under Payment Voucher
Type. To restrict Arun's access for Creating Vouchers under Payment Voucher Type, access to Accounting Masters
has to be Disallowed.
 Interest Calculation in Tally
• Interest is a legitimate return on money invested and chargeable in the business world on
loans and also on delayed payments. Interest can be calculated on the basis of Simple or
Compound Interest.
• With Tally.ERP 9 you can obtain reports on interest calculated based on the configurations
made. Interest is calculated on outstanding receivables or payables.

Note : If the interest style selected is 365-day Year , then the interest will be calculated for 365 days irrespective of the number of days in the
calendar year. If Calendar Year is selected as the interest style, then the rate of interest will be calculated on 365 days or 366 days, depending
on the number of days as per the calendar.
Interest Calculation in Tally

In case of the above configuration, interest will be calculated at 5% starting from 10th day after due date and at 10% starting from 60th day
after due date. Similarly, multiple slabs can be configured with different interest style, applicability, calculate from and rounding.
Interest Calculation in Tally
 Interest Calculation in Tally
View interest amount on invoices
• You can calculate interest on each invoice for the period it is outstanding, wholly or partly. Transaction by transaction or bill-by-bill interest
calculation is permitted for party accounts like accounts under the groups sundry debtors and sundry creditors.
• For interest calculation on each bill, Bill-wise details should be enabled for the company and the party.
• The Ledger Interest report displays the interest calculated for the ledger selected. If a part of the amount is settled, then interest is
calculated only on the amount pending to be repaid.
Interest Calculation in Tally
 Back up and Restore in Tally
• It is a good practice to take back up of your data at regular intervals to avoid any loss to data. Tally.ERP 9 provides
you a facility to take back up of your data and restore as and when required.

Back up data

• Taking a backup of your data at regular intervals helps retrieve your backed up data when your existing data is
lost. Using Tally.ERP 9, you can easily take a backup of your company data any time and restore it when you need.

Steps

1. Go to Gateway of Tally > F3 : Cmp Info > Backup to view the Backup Companies on Disk screen.
2. Source - The folder path where your company data is stored. By default, the folder path of your existing company
data is displayed here.
3. Destination - The folder path where the data backup has to be stored. You can store the backup locally on your
computer, on any external storage device, or on a storage space on the network.
4. Select the required company from the List of Companies . Select All items to back up data of all the companies.
5. Press Ctrl+A to initiate the backup process.
Back up and Restore in Tally
Restore Backup
UNIT IV – Generating basic
reports
Trial balance
A trial balance is a summary of all ledger balances, and helps in checking whether the transactions are correct and
balanced. If journal entries are error-free and posted correctly to the general ledger, the total of all debit balances
should be equal the total of all credit balances.

By default, the Trial Balance report will be generated as on the date of the last voucher entry. You can change the
date to view the report for the required period.
Financial Statements
Financial Statements
Financial Statements
View Profit & Loss Account (Contd)
The Profit & Loss A/c is in horizontal form, by default. You can view the report in vertical format by enabling the
option Show Vertical Profit & Loss? by clicking F12: Configure . You can view additional information or toggle to
another report using the options available in the button bar.

4. Click S : Schedule VI in the Schedule VI Profit & Loss A/c, as shown below:
Accounting Books
To display/generate the accounting books , following are the steps

Gateway of Tally ------ Display----------Account Books --------- select the book which you want to generate
(eg. Cash Book, Sales Register, Purchase Register, etc)

Exception Report
The different kinds of
Exception Reports track unusual transactions or balances. exception reports are:

To display/generate the Exception report, following are the steps

Gateway of Tally ------ Display---------- Exception Report

Printing cheques in tally
• The Cheque Printing option in the Banking menu enables you to print the pending, already printed or the required
cheques continuously from a single screen. You can also update the cheque details and have track of cheques to be
printed, of a selected or all banks
Printing cheques in tally
Printing cheques in tally
Printing cheques in tally
Printing cheques in tally
Printing vouchers in tally