Tally.ERP 9 at a Glance The information contained in this document represents the current view of Tally Solutions Pvt. Ltd., (‘Tally’ in short) on the topics discussed as of the date of publication. Because Tally must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Tally, and Tally cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. TALLY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form, by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Tally Solutions Pvt. Ltd. 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Version: Tally.ERP 9 at a Glance/1.0/March 2009 Introduction ....................................................................................................................................1 Lesson 1: Complete Book-keeping ...............................................................................................4 1.1 Simple & Easy Voucher Entry ................................................................................4 1.2 Books & Registers ...................................................................................................7 1.3 Statements of Accounts .........................................................................................13 1.4 Credit Limits ..........................................................................................................19 1.5 Bank Reconciliation ..............................................................................................20 1.6 Flexible Reporting .................................................................................................22 Lesson 2: Why is Tally the best for basic Financial Management? ........................................26 2.1 Fund Flows ............................................................................................................26 2.2 Payment performance of Debtors (Receivables Turnover) ...................................27 2.3 Branch Accounting ................................................................................................28 2.4 Flexible Period Accounting ...................................................................................29 2.5 Budgeting and Control ..........................................................................................30 2.6 Cost centers / Profit centers with multiple Cost Categories ..................................32 2.7 Ratio Analysis .......................................................................................................34 2.8 Scenario Management ...........................................................................................35 Lesson 3: Why is Tally the best for advanced Financial Management ? ................................38 3.1 Multiple companies ...............................................................................................38 3.2 Multi-Currency ......................................................................................................39 3.3 Multiple financial year ..........................................................................................41 3.4 Multi-columnar reporting ......................................................................................41 3.5 Memo Vouchers ....................................................................................................42 3.6 Post dated Vouchers ..............................................................................................44 3.7 User defined Vouchers ..........................................................................................45 3.8 Sales and Purchase extracts ...................................................................................45 3.9 Cash Flows ............................................................................................................46 3.10 Daily Balance & Transaction Values ..................................................................47 3.11 Interest Calculations ............................................................................................49 3.12 Percentage Based Reporting ................................................................................50 Lesson 4: Why Tally is best for basic Inventory Management ? .............................................52 4.1 Flexible units of Measure ......................................................................................52 4.2 Flexible Invoicing ..................................................................................................55 4.3 Unlimited Grouping & Categorization of Stock items ..........................................57 4.4 Voucher Classes to expedite voucher Entry ..........................................................59 4.5 Separate Actual and Billed Quantities ..................................................................61 4.6 Gross Profits and Consumption Report .................................................................62 4.7 Use Stock Item Names and / or Part Numbers ......................................................63 4.8 POS Invoicing .......................................................................................................65 Lesson 5: Why Tally is the best for advanced Inventory Management? ................................67 5.1 Stock Query ...........................................................................................................68 5.2 Multiple Warehouses / Locations ..........................................................................71 5.3 Sub-Godowns ........................................................................................................ 73 5.4 Stock transfers to Godowns ...................................................................................74 5.5 Multiple Stock Valuation ......................................................................................75 5.6 Batch-wise / Lot-wise & Expiry Date Handling ...................................................77 5.7 Sales and Purchase Order Processing ....................................................................78 5.8 Tracking Inventory ................................................................................................79 5.9 Rejection In and Rejection Out .............................................................................80 5.10 Additional Costs Incurred on Purchase ...............................................................81 5.11 Unlimited Stock Item Classification ...................................................................83 5.12 Bill of Materials ...................................................................................................83 5.13 Tracking Additional Cost of Manufacturing .......................................................85 5.14 Job Costing ..........................................................................................................85 5.15 Stock Ageing Analysis ........................................................................................90 5.16 Batch Related Stock Ageing Report ....................................................................91 5.17 Price List with Multi Price levels ........................................................................92 5.18 Reorder Levels .....................................................................................................93 5.19 Movement Analysis (Partywise/ Itemwise/ Stock Groupwise) ...........................95 5.20 Profitability Analysis (Stock Groupwise / Stock Itemwise / Invoicewise / Location- wise) ............................................................................................................................96 Lesson 6: The Technology Advantage of Tally.ERP 9 .............................................................99 6.1 Behind the Scene ...................................................................................................99 6.2 Internet & Data exchange ......................................................................................99 6.3 ODBC - Open Database Connectivity .................................................................100 6.4 Automatic data replication/exchange with synchronisation ...............................102 6.5 Security Management ..........................................................................................103 6.6 Tally Audit ...........................................................................................................104 6.7 Tally Vault ...........................................................................................................106 6.8 Administration and Manageability ......................................................................106 6.9 Extensibility (TDL - Tally Definition Language) ...............................................108 6.10 Others ................................................................................................................108 6.11 Internal Backup / Restore ..................................................................................118 6.12 Concurrent Multi-lingual Capability .................................................................123 6.13 Tally.NET ..........................................................................................................123 6.14 New Licensing Mechanism ...............................................................................124 6.15 Control Centre ...................................................................................................124 6.16 Support Centre ...................................................................................................126 6.17 Auditor’s Edition of Tally.ERP 9 ......................................................................127 Lesson 7: Statutory Compliance Capabilities in Tally.ERP 9 ...............................................128 7.1 Value Added Tax (VAT) .....................................................................................128 7.2 Service Tax ..........................................................................................................139 7.3 Tax Deducted at Source (TDS) ...........................................................................149 7.4 Excise (Manufacturer & Dealer) .........................................................................162 7.5 Fringe Benefit Tax ...............................................................................................176 7.6 Tax Collected at Source (TCS) ............................................................................184 7.7 Central Sales Tax .................................................................................................193 Lesson 8: Payroll Compliance in Tally.ERP 9 ........................................................................199 8.1 Enable Payroll .....................................................................................................199 8.2 Create Payroll Masters ........................................................................................202 8.3 Record Attendance Voucher ................................................................................206 8.4 View Payroll Reports ..........................................................................................208 1 Introduction A Path Breaking Technology Tally.ERP 9 - It's Fast, Powerful, Scalable… And very Reliable! 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. Built on the proprietary technology of Tally Solutions - C:MuLATE (Concurrent Multi-lingual Acceler- ated Technology Engine) - Tally.ERP 9 is a perfect fusion between the path-breaking Concurrent Multi-lingual Platform and an Object Oriented Database Engine. Technology on which someday all business accounting solutions will be built. 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, inven- tory, 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 combine with enhanced MIS, Multi-lingual, Data Synchronization and Remote capabilities help you simplify all your business processes easily and cost-effectively. Simply the Best The Tally.ERP 9 encompasses the following salient features : � Simplicity : Tally.ERP 9 is simple, easy to setup and use. It also allows easy Keyboard operations. It requires basic knowledge of Accounts and English to use it. � Speed : Tally.ERP 9 provides the capability to generate instant and accurate reports, which assists the management to take timely and correct decisions for the overall productivity and growth of the company. Introduction 2 � Power : Tally.ERP 9 allows the user to maintain multiple companies and with unlimited lev- els of classification & grouping capabilities. It also allows drill downfacility from report level to transaction level. � Flexibility : Tally.ERP 9 provides flexiblity 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. � Scalability : Tally.ERP 9 suits to any style of business needs and eliminates the necessity for a business to change its style of operation, in order to adapt to the application. � Concurrent multi-lingual 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 faciliaties real-time multi-user environment. � Accounting without Codes : Tally.ERP 9 allows accounting with the regular names (the way you spell them or use in normal parlance) without any account codes. � Technical support : Timely support is available from our experts at the Tally Service Part- ners (TSPs) � 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. � 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 any- where and anytime. � Control Centre : works as an interface between the user and Tally.ERP 9 installed at dif- ferent sites and enables the user to centrally configure and administer Site/User belonging to an account. Introduction 3 � Support Centre : allows a user can 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 pro- vides auditing and compliance capabilities exclusively for Chartered Accountants. 4 Lesson 1: Complete Book-keeping Tally.ERP 9 maintains all books of accounts starting from record of vouchers to ledgers etc. You can use different types of vouchers like payment, receipt, sales, purchases, receipt notes, delivery notes and adjustment entry vouchers like journals, debit & credit notes. Tally.ERP 9 inherits the principle of double entry system of book keeping and thus reduces possibilities of errors during voucher entry. 1.1 Simple & Easy Voucher Entry Tally.ERP 9 provides flexibility to use predefined voucher types, comprising of accounting and inventory voucher types to record various business transactions. It also allows you to use Keyboard shortcut Keys as well as mouse operations during voucher entry. 1.1.1 User-defined Voucher Types Tally.ERP 9 provides predefined vouchers and also allows you to create different types of vouchers and record, classify & segregate vouchers as per your requirements. For e.g. you can further classify payment vouchers, by creating voucher types with the names Bank Payment and Cash Payment. To create a new Voucher Type, Go to Gateway of Tally > Accounts Info. > Voucher Type > Create � Enter the Voucher name � Specify the Type of voucher � Specify the Method of numbering � Activate or deactivate the other functions as required Complete Book Keeping 5 Figure 1.1 Voucher Type Creation 1.1.2 Flexible Voucher Numbering Tally.ERP 9 also allows you to set the voucher numbering as per your needs, which is either automatic or manual or none. Further, you can also assign a Prefix / Suffix or both along with the Voucher number and define the periodicity of restarting Voucher numbers during entry i.e., either from the beginning of every day, month, week, year or never. From the above Voucher Type Creation / Alteration screen, � Specify the Method of Voucher Numbering Figure 1.2 Types of Numbering � Specify the Advance Configurations for Voucher Numbering, as required Complete Book Keeping 6 Figure 1.3 Advance Configurations for Voucher Numbering 1.1.3 Flexible classification of Account Heads / Chart of Accounts In Tally.ERP 9, there are 28 predefined groups which are widely used in Chart of Accounts of many trading organizations. Out of these, 15 groups are Primary Groups and the remaining 13 are Sub-Groups. Among the 15 predefined groups, 9 Groups are Balance Sheet items and the remaining 6 groups are Profit & Loss A/c items. However, you may also alter the nomenclature of these predefined 28 Groups. Tally.ERP 9 allows you to define Account heads and groups as per your requirements, thereby facilitating multiple structural grouping. The flexibility & ease of creating user-defined Account Heads and groups (Chart of Accounts) as per nature of business or business practice makes Tally.ERP 9 to suit businesses across industries, verticals and geographies without changing the way they do their business. For Eg., You can have debtor's based on geographies viz., North Debtors, South Debtors, East Debtors & West Debtors and further subgroups based on states i.e., Karnataka Debtors, Mahar- ashtra Debtors, Tamil Nadu Debtors. The states can also be classified into cities and so on. Complete Book Keeping 7 1.2 Books & Registers Tally.ERP 9 provides you capability to generate various books and registers for any specific period viz., month, date, and year and as on date. In Tally.ERP 9, once voucher entry is made, the transactions are automatically & immediately in the Day Book and other Books of Accounts without any additional effort. Tally.ERP 9 allows you to maintain and generate all primary books of accounts and registers like � Cash Book � Bank Book � Purchase Register � Sales Register � Journal Register � Debit Note Register � Credit Note Register � General Ledger 1.2.1 Cash Book To generate Cash Book, Go to Gateway of Tally > Display > Account Books > Cash / Bank Book(s) � Select the required Cash Ledger Account � Press Enter on the required month to view Cash transactions for a month Complete Book Keeping 8 Figure 1.4 Cash Book 1.2.2 Bank Book To generate Bank Book, Go to Gateway of Tally > Display > Account Books > Cash / Bank Book(s) � Select the required Bank Account � Press Enter on the required month to view Bank transactions for a month Complete Book Keeping 9 Figure 1.5 Bank Book 1.2.3 Purchase Register To generate Purchase Register, Go to Gateway of Tally > Display > Account Books > Purchase Register � Press Enter on the required month to view Purchase Transactions for a month