2. Accounting Fundamentals
Basics of Tally
Configuration
Creating Groups and Ledgers
Vouchers
Advanced Features
Reports
Inventory
Storage and transferring of items
Vouchers with Inventory
Inventory reports
Advanced reports
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3. Accounting is a science of recording
classifying and summarizing of business
transaction ,done on the basis of certain
principles such as principles of Double
Entry System, which are universally
applicable.
Accounting is based on certain concepts
and conventions and is subject to some
limitations. It is influenced by bias and
personal judgment of the accountant.
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4. Financial Accounting:
It is the original form of accounting. It is mainly
confined to the preparation of financial statements
for the use of outsiders like creditors, banks and
financial institutions etc. The chief purpose of
financial accounting is to calculate profit or loss
made by the business during the year and exhibit
financial position of the business as on a particular
date.
Cost Accounting:
Function of cost accounting is to ascertain the cost of
the product and to help the management in the
control of cost.
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5. Management Accounting or Managerial
Accounting:
It is accounting for management. i.e.,
accounting which provides necessary
information to the management for
discharging its functions. It is the
reproduction of financial accounts in such
a way as will enable the management to
take decisions and to control various
business activities.
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6. The main purpose of financial accounting is to
prepare financial reports that provide
information about a firm's performance to
external parties such as investors, creditors,
and tax authorities. Financial accountingis
performed according to Generally Accepted
Accounting Principles (GAAP) guidelines.The
primary accounting professional association
in the U.S. is the American Institute of
Certified Public Accountants (AICPA).
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7. Businesses have two primary objectives:
Earn a profit
Remain solvent
Solvency represents the ability of the business
to pay its bills and service its debt.
The four financial statements are reports that
allow interested parties to evaluate the
profitability and solvency of a business.
These reports include the following financial
statements:
Balance Sheet
Income Statement
Statement of Owner's Equity
Statement of Cash Flows
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8. Double Entry Accounting Financial accounting is based on
double-entry bookkeeping procedures in which each
transaction is recorded in opposite columns of the accounts
affected by the exchange. Double entry accounting is a
significant improvement over simple and more error-prone
single-entry bookkeeping systems.
Fundamental Accounting Model The balance sheet is based
on the following fundamental accounting equation :
Assets = Liabilities + Equity(owners)
This model has been used since the 18th century. It
essentially states that a business owes all of its assets to
either creditors or owners, where the assets of a business are
its resources, and the creditors and owners are the sources of
those resources.
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9. Step1
Journal : Transactions on daily basic are first recorded in
book known as journal.
Step 2
Ledger : Than these transactions are grouped by
transferring to concerned accounts known as ledger
accounts. The process of transfer is known as posting.
Step 3
Trial balance : At the end of period ledger accounts are
balance and a summary is prepared known as trial
balance
Step4
Profit & Loss : From trial balance the profit and loss is
ascertain by preparing final statements.
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10. Step 5
Balance sheet : After that balance sheet is
prepared which is the statement that
shows the value of assets and liabilities as
on a particular date
Step 6
Continuity : The balance of Balance sheet
carried forward to next year and whole
process repeat for the year.
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11. Keeping systematic records
Protecting properties of the business
Communicating the results
Meeting Legal Requirements
To ascertain the financial position of the
company
To facilitate rational decision-making
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13. Maintenance of business records
Preparation of final statements
Helps in comparison of results
Helps in decision making
Good evidence in court
Planning and control of operations
Provides information to interested person
Helps in raising loans
Valuation of business
Helps in complying taxation matters
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14. Ignores non monetary items
Based on estimates
Personal influence
Historical cost
Fails to provide timely information
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15. Accounting is based on 5 basic account types:
Assets
Liabilities
Equity
Income and
Expenses
Balance Sheet Accounts
The three so-called Balance Sheet Accounts are Assets, Liabilities, and
Equity. Balance Sheet Accounts are used to track the changes in value of
things you own or owe.
Assets is the group of things that you own. Your assets could include a
car, cash, a house, stocks, or anything else that has convertible value.
Convertible value means that theoretically you could sell the item for cash.
Liabilities is the group of things on which you owe money. Your liabilities
could include a car loan, a student loan, a mortgage, your investment
margin account, or anything else which you must pay back at some time.
Equity is the same as "net worth." It represents what is left over after you
subtract your liabilities from your assets. It can be thought of as the portion
of your assets that you own outright, without any debt.
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16. Income and Expenses Accounts
The two Income and Expense Accounts are
used to increase or decrease the value of
your accounts.
Income(Revenue) is the payment you
receive for your time, services you provide, or
the use of your money.
Expenses refer to money you spend to
purchase goods or services provided by
someone else.
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17. Debits and Credits
These are the backbone of any accounting
system. Understand how debits and credits
work and you'll understand the whole system.
Every accounting entry in the general ledger
contains both a debit and a credit. Further, all
debits must equal all credits. If they don't, the
entry is out of balance.
Debits and Credits vs. Account Types
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Account Type Debit Credit
Assets Increases Decreases
Liabilities Decreases Increases
Income Decreases Increases
Expenses Increases Decreases
19. Traditional Approach
Personal A/c
Real A/c
Nominal A/c
Modern Approach
Capital
Liabilities
Assets
Revenue
Expenses
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Accounts
Personal Impersonal
Real Nominal
20. Personal A/c
Cr – The Giver of money
Dr – The Receiver of money
Real A/c
Cr – What goes out for business purpose
Dr – What comes in for business purpose
Nominal A/c
Cr – The income and profit
Dr – All Expenses and losses
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21. Capital : Money with which business is commenced.
Amount invested in a business.
Cr – Increase
Dr – Decrease
Liabilities : financial obligation of an entity. Amount
payable to outsiders.(long term, short term)
Cr – Increase
Dr – Decrease
Assets : Valuable items, which help in generating
revenue in business. Resources and properties owned
by entity. (Fixed, Current or floating assets, Tangible ,
intangible, wasting assets)
Cr – Decrease
Dr - Increase Tally 9
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22. Revenue : The amount actually received
by selling the items in which the business
normally deals in.
Cr – Increase
Dr – Decrease
Expenses : Amount incurred to earn
revenue.
Cr – Decrease
Dr - Increase
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23. Purchase : Any object purchased with the objective of
reselling.
Sale : Sale disposal of normally traded or manufactured
items.
Purchase return : When a business returns the
purchased goods to the supplier for any reason.
Sale return : When sold goods are returns the purchased
goods to the supplier for any reason.
Stock : Goods lying in the godown of businessman.
Stock taking : the counting of number of items lying in the
stock.
Valuation : Assigning a value in terms of money to the
goods lying in the stock. Tally 9
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24. Debtors : Customers to whom goods are sold on credit
are called creditors.
Creditor : Person from whom goods are purchased on
credit.
Investment : Putting idle money in some revenue
generating avenue.
Bills receivable : If a debtor puts his signature on a
written order it is said that the bill have been accepted by
the debtor and it becomes bill receivable.
Bills payable : In this the businessman puts his signature
on a written order then it is said that the bill is accepted
by the businessman.
Overdraft : Excess money withdrawn from bank.
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25. Drawings : withdrawing money from business for
personal and household expenses.
Reserves : Any amount set aside or appropriated out of
the profits for future requirements.
Discount : Set of allurement given to customers to pay
promptly.(Cash , Quantity, Trade Discount)
Sundry creditors : Current liabilities (service provider)
Sundry debtors : Current assets (service receiver)
Trial Balance : statement of debits and credits total or
balance extracted from various accounts in the
ledger.(total method, balance method)
Balance sheet : Statement prepared to measure the
financial position of a business on a fixed date.
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26. Types of accounting software:
Tally gold – Multi user
Tally silver – Single user
Tally ERP – Online user (Advantage is if
system crashes the backup lies at tally
server)
Tally educational – If no license and serial
key (two dates 1st and 2nd April to work on)
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27. Expand your business
No need to hire specialized resources
Blazing speed
Unmatched stability
Sheer power
Real-time access to information
Better cash flow and savings on interest
Amazing accuracy
Manage your future dealing with bad debtors
and persistent defaulters
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28. Faster and error-free invoicing and data entry
Identify products with high or low margins
Avoid stocking excess items and ensure that you
don’t run out of essential stock
Better planning and dramatic improvement in co-
ordinate of your operations with reduced paper work
Reduced cost and increased productivity
Accurate information tracking quicker data entry and
retrieval
Get better understanding and analysis of
performance levels for various periods and divisions
Enjoy better planning and forecasting
Save time and reduce paperwork
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29. Tally 9
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Title area Horizontal button
bar
Close button
Main
Area
Calculator
area
Bottom pane
Button
bar
30. The gateway of Tally screen is separated into six
sections, namely Title area, horizontal button bar,
main area( ctrl+m),calculator area(ctrl+n), button
bar and the bottom pane.
Title area contains the tally copyright and tally
website link. Tally product type(tally gold, silver,
bronze or educational) and tally serial number
appears at the upper-right corner.
Main area is separated into two sections, namely ,
the left-hand side and right hand side, left-hand
side gives information of current period, current
date and list of selected companies. Right-hand
side display company information menu(create
company, backup company or restore company).
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31. Horizontal button bar contains Print (alt+p),
Export(alt+e), E-mail(alt+m), Upload(alt+o),
language(ctlr+l), keyboard(ctrl+k) and help(alt+h).
Bottom pane contains version number, release
details, current date(day, date, month and year),
system time(hh/mm/ss)
Close button in the upper right corner functions
similar to the use of ‘ESC’.
Calculator area is used for calculator functions.
Activate by pressing(ctrl+n)
Button bar to make the work easier and faster and
vary from on screen to another .
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32. Help – alt+h
Select company – F1
Shut company – alt+F1
Select credit note voucher – ctrl+F8
Gateway of tally – ctrl+m
Calculator – ctrl+n
Date – F2
Period – alt+F2
Company – F3
Company info – alt+F3
Features – F11
Configure – F12
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34. Directory : the data path where you want the company
to be created. Default directory path is c:/tally/data
Name: Enter the name of the company whose books
are being opened e.g. client company name.
Mailing name and address : enter the mailing name
field. It display the company name by default. The
mailing name and address are picked up for inclusion
in any report.
Statutory compliance for : Select the country from the
list of countries. The statutory features and base
currency symbol are enabled in accordance with the
country selected.
State : Select the appropriate state
Pin code : Specify the pin code
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35. Telephone
E-mail address : used to email documents,
reports and data from tally
Currency
Maintain : account only and accounts with
inventory
Financial year from : tally automatically
considers 12 months from the date you give
here as the financial year.
Books beginning from : the date for books
beginning from can be changed, in case of
companies, which are incorporated in the
middle of the year.
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36. Base Currency Information- The currency
in which accounts would be maintained, it
varies from country and region.
Base Currency Symbol.
Formal Name-Full name of currency
specified.
Number of Decimal places.
Show accounts in millions.
Is Symbol Suffixed to Amounts.
Put a space between Amount & Symbol.
Symbol for Decimal portion.
Decimal Places for Printing Amount in
words. Tally 9
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37. Loading a company :
Automatically by tally
Using the select company option
Select company
Tally displays
Company name
System-generated code for each company
The financial year information
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39. Main Area
The left side of the main area includes:
Current period – Currently loaded companies
accounting period
Current date – Date of last voucher entry for the
selected company
List of selected companies – displays the name of
loaded company
The right side of the main area includes:
Creation of account master and importing master
information
Creating of accounting vouchers and importing
transaction information
Viewing and printing financial reports using the
information given in the masters and transactions
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40. Go to gateway of tally
Select F3 : Cmp info (alt+F3)
Select Alter and press enter : make
necessary changes in the required fields
To change the password if use security
control is set to Yes:
Enter the name of administrator
Enter the new password
Re-enter the password
Enter the old password and accept
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41. Select F3 : Cmp info (alt+F3)
Select Alter and press Enter
Select the company to be deleted
Use Alt+D to delete. Tally will prompt for a
confirmation on deleting the company
Press enter to delete the company
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42. The books of account of different
companies belonging to the same
management or owners are required to be
consolidated to present the financial
position of the group of companies as a
whole.
Creating a group of company
A group of companies an be created only for
companies that have already been loaded.
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43. 1st step : load the companies whose
account is to be grouped. Select the
companies using select cmp button.
2nd step : press alt+F3 or click create cmp
and select create group company
3rd step : enter the name of the group
company ,address and tax details and
select the members of the group company
from list of companies. Select end of list to
complete the selection process
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45. To shut a company is to unload
it. It does not mean that you
have deleted it.
You can shut a company in two
ways – either using the button
F1: Shut cmp (alt+F1) or
pressing Enter on shut
company menu option on the
company info menu.
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46. Configuration is to be
done before creating and
starting work on a
company
Press F12 or configure
button
General
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47. Country details
Style of
names(name/alias etc)
Styles of date(indian(yy-
mm-dd), american(mm-
dd-yy),etc)
Configuration of
numbers
Graphs in monthly
reports
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48. Show inventory detail
Show table of bills details for selection
Show bill-wise detail
Expand into multiple lines
Current show ledger balances
Show balance as on voucher date
Use payment/receipt as contra
Allow cash accounts in journals
Use cr/dr instead of to/by entry
Warn on negative cash balance
Pre allocate bills for payment
Allow expenses/fixed asset in purchase
vouchers
Allow income accounts in sales vouchers
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49. Printing option allows you to configure
printing of voucher, invoice and statement
layouts
The general configuration is applicable for
all print reports
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52. To create a group or ledger
Go to gateway of tally > account info > group or
ledger
Group
Single group : useful when you want to work on
one group
Multiple group : useful when you are working on
many sub groups at a time and saves lot of time
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53. Create : used to create new masters
Display : used to vies the master information
Alter : used to view and make necessary changes
to master information
The reserved primary groups and sub-groups:
Capital accounts
Reserves and surplus[retained earnings]
Current assets
Bank accounts
Cash-in hand
Deposits(asset)
Loans & advances(asset)
Stock –in-hand
Sundry debtors Tally 9
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54. Current liabilities
Duties and taxes
Provisions
Sundry creditors
Fixed assets
Investments
Loans(liability)
Bank OD Account[bank OCC Account]
Secured loans
Unsecured loans
Suspense account
Miscellaneous expenses(asset)
Branch/divisions
Sales account
Purchase account
Direct income
Indirect income
Direct expenses
Indirect expenses Tally 9
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55. Capital Account : This records the capital and reserves
of the company.
Reserves and surplus : This contains ledger like capital
reserves, general reserve, reserve for depreciation.
Current assets : those asset that do not belong to bank
account or cash-in-hand
a) Bank accounts : current account, savings account,
short term deposit accounts
b) Cash-in-hand : cash a/c is created
c) Deposits : Fixed deposits, security deposits
d) Loans & advances : All loans given by the company
and advances of non-advances of a non-trading
nature
e) Stock-in-hand : raw materials, work-in-progress and
finished goods
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56. Current liabilities : outstanding liabilities, statutory
liabilities and other minor.
a) Duties and taxes
b) Provisions
c) Loans
Bank OD accounts
a) Bank OCC a/c : to record company’s overdraft
accounts with banks
i. Secured loan
ii. Unsecured loan
Suspense account : to track the money paid or
recovered
a) Loans and advances (asset) group
Miscellaneous expenses(asset): legal disclosure
requirements
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57. Branch /division : to maintain ledger account of all
your company’s branches, divisions, affiliates,
sister concerns, subsidiaries.
Sales Account : domestic sales, export sales
Purchase account
Direct income : non-trade income (professional
fees)
Indirect income : rent received, interest received
Direct expenses : manufacturing or direct trading
expenses
Indirect expenses: transfer of profit, loss account to
capital or reserve
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58. Gateway to tally>account info>group>create
Name of group
Alias
Under : sub classification under existing group
Nature of group : additional information
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59. Group behaves like sub-ledger
Net debit/credit balance for reporting
Used for calculation
Method to allocate when used in purchase
invoice
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60. Gateway of tally>accounts info>group>alter
Select the group to be deleted
Press alt+D to delete
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61. Ledger is actual account head to which
you identify transaction. In tally, you pass
accounting vouchers using ledgers. All
ledgers are classified under group
Gateway to tally>accounts info>ledger
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63. Name : name of account
Alias
Under : classification under appropriate
group. To create new group alt+C
Opening balance : it is applicable when
ledger is asset or a liability and if it has a
balance in the account as on the date of
beginning of books
Maintain balance bill by bill : if you wish to
give a bill-by-bill breakup of ledger balance
for sundry creditor or debtor including
opening balance
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64. Date
Name : bill no or document no.
Due date : Date when bill is due
Amount :
Inventory value effected : applicable when
only if your accounts are integrated with
inventory(sales , purchase)
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65. Display ledger : gateway of tally>accounts
info> ledger>display
Altering ledger : gateway of tally >
accounts info> ledger > alter
Deleting ledger : go to ledger altercation
screen and press alt+D
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66. The vouchers are used for recording various
transaction.
Payment voucher is used for all types of
payments, a receipt voucher for all types of
money receipts, a sales voucher for
recording sales transactions, and so on.
The predefined voucher types can be
displayed by:
Gateway of tally>display>list of accounts>
ctrl+V Tally 9
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67. Voucher is a document that contains
details of a financial transaction. For every
transaction, you can use appropriate tally
voucher to enter the details into the
ledgers and update the financial position of
the company
Two types of voucher entry
Accounting vouchers
Inventory vouchers
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68. Payment voucher : payment related transactions
Receipt voucher :transaction accounting for money
received
Contra voucher : transfer of funds
• Cast account to bank account
• Bank account to cash account
• Bank account to bank account
Sales voucher :
• Sales orders
• Sales vouchers/invoices
• Delivery notes
• Rejection in
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70. Creating accounting vouchers in tally
Gateway of tally>accounting vouchers
Default voucher entry screen is payment
voucher screen
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71. Voucher number : it is set automatic in
voucher entering screen
Reference : purchase order no. or invoice
no.
Narration : to type any comment
• Common narration
• Single narration
Particulars to/by or dr/cr
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73. You can either alter the existing sales voucher
type or create a new voucher type based on
sales
Gateway of tally > accounts info > voucher
types > alter
Select any voucher type say sales
Go to the field name of class and enter a
name
In next screen you can define the default
accounting allocations for sales invoice and
the default accounting allocations for
purchase invoice( ledger name, percentage
amount, rounding method and limit)
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74. As additional excise : In Indian sub-continent, a manufacturing
tax or excise is levied.
As Flat Rate : To specify a standard mark-up/down on an
invoice.
As surcharge : To calculate the value based on the
immediately preceding figure.
As total amount rounding : To create an account which would
carry the rounding difference.
As user defined value : used when basis of calculation is
neither value nor quantity dependent.
Based on quantity : Used for calculating that is based upon
‘total qty’ supplied.
On current sub total : taxes applicable on total goods value as
well as supplementary charges like excise duty, packaging
charges.
On item rate : Used for both VAT as well as excise duty style
calculation.
On Total Sales : Uses the sum of stock items used in the
invoice for calculation. Tally 9
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75. Used for entering fund transfer where net
inflow and outflow are equal i.e. net effect is
zero. Groups : Cash-in-hand, bank accounts
and bank OCC.
Transactions to be entered in contra voucher:
Cash deposit into bank
Cash withdraw from bank
Cheque of one bank deposited to another
bank
Cash given to/received back from petty cash
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76. Press F4 at the voucher entry screen
Background color of voucher screen : white
Entry rule: The first entry is always credit. From 2nd
entry onwards you can select Dr or Cr. Ledger
accounts pop-up would display only ledger placed
under cash, Bank account and bank OCC
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77. Payment voucher : All transaction related
to payment (by cash or bank) are recorded
in payment voucher. Dues to creditors,
Loans/Advances given by you or
repayment of loans/advances.
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78. Press F5 at the voucher screen to make
payment voucher
Background color of voucher screen :
Yellow
Entry Rule : The first entry is always debit
and second entry onwards you may
specify debit or credit . You can make
multiple entries in single voucher .
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79. All inflow of money (in cash or through
bank) is recorded through receipt voucher.
Through debtor or loans/advances taken
or refund of loans/advances given earlier.
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80. Background color of voucher screen :
green
Entry rule : first entry is always credit and
second entry onwards you can specify dr
or cr. You can also enter the fund transfer
entry in a reciept voucher if you activate
the option payment/receipt voucher as
contra.
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81. Used for non-cash transactions like
adjustment between ledger accounts.
Press F7 at voucher screen to enter journal
voucher
Background color of voucher screen : yellow
Entry rules : One account may be debited and
another account may be credited. There is no
restriction of number of debits & credits,
provided the total of debits is equal to total of
credits
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83. All purchase transactions are entered in
purchase voucher (including cash
purchase). Cash purchase entry will
automatically appear both in purchase
register and in cash book.
Press F9 at voucher entry screen to enter
purchase voucher
Background color of voucher screen yellow
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84. All sales transaction is entered in sales
voucher, entry would automatically appear
both in sales register and in cash book.
Press F8 at voucher entry screen to enter
sales voucher
Background color of voucher screen green
Entry rule : The first entry must be debit
involving any debtor. Second entry should be
credit to a ledger placed under sales account
group
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86. If you set the option use debit/credit notes
as yes F11 feature. You can select this
voucher on clicking F7 or F8
Basically credit note is entered to credit
party account, when buyer returns some
goods that are sold to him or when you
grant him credit or discount/rebate.
Entry rule : first entry must be credit
involving any debtor. Second should be
debit to a ledger. Tally 9
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87. Can be selecting by choosing F7 and F9
It is entered to debit party account. When
you make purchase return or have short
billed a customer or your supplier.
Background color is yellow
Entry rule: first should be debit involving
any creditor. Second a credit to a ledger
placed under purchase.
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89. Type of voucher
Abbreviation
Method of voucher entry
Use effective date for voucher
Use common narration
Narration for each entry
Printing
Voucher class
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91. An enhanced security system which allows
for encryption of the company data.
Encryption involves converting normally
accessible Tally information into
unrecognizable information.
Gateway of tally>Cmp info>Create/Alter
company
Set use security control to Yes
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92. To change tally vault password of a company:
Select Gateway of tally> F3:Cmp Info>
Change Tally vault
Tally Audit feature: Provides capability to the
administrator/auditor to track changes in the
accounts following his previous review.
To use this facility select yes against using
audit feature in company creation screen.
To view the audit list go to display>Statement
of accounts>Tally audit
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93. Backup
Tally can take backup of the data from
virtually any storage medium into any other
medium(floppy drive, hard drive, zip drive,
tape drive etc.)
Gateway of tally>F3: cmp info>backup
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94. Restore
Tally allows restoring of data from medium
into any other storage medium.
Budget
They are used to set targets
and compare against actuals
and get variances
Gateway of tally>Account info
>Budgets>Create Tally 9
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95. Special vouchers used to record provisional or
non-conventional transactions.
Memo voucher : This is a non-accounting
voucher and the entries made using memo
voucher will not affect your accounts.
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96. Optional voucher
It is a non-accounting voucher, it is not a
separate voucher type, you can make an
existing voucher as optional
Gateway of tally>Account info>voucher
types>select a voucher type>set make
optional as default to yes
Enabling optional voucher
Gateway of tally>F11:features>Accounting
features>set use rev. journal & optional
vouchers to yes
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97. Reversing journals
Special journals that are automatically
reversed after a specified date. They exist
only till that date and are effective only when
they are included in reports like balance
sheet.
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98. Post dated voucher registry
All post dated vouchers are maintained in a
post-dated voucher register
Go to gateway of tally > Display> Exception
reports> post-dated vouchers
Difference with unconventional voucher:
Post-dated voucher effect regular books of
account.
Post-dated entry can be done through
account voucher entry Tally 9
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99. A Cost Centre is unit of an organization to which
transactions can be allocated. When only cost or
expenses are allocated to these units, they are
called cost centres. When profits are allocated they
become profit centres. e.g..
Department
Product
Individual
To activate : F11:Features > Accounting Features >
maintain cost centres to yes
Create new account centre : Goto Accounts info>
cost centre > single cost centre> create
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100. Facilitate to allocate to multiple cost centres in parallel.
For example a company may allocate an amount
independently to salesman, product & agents.
Create cost categories : goto account info> cost
category> single cost category> create
Example:
Create the cost categories named department,
executives and project
Create three cost centres named marketing,
manufacturing and finance under cost category
department. Create three cost centres salesman A,
salesman B, salesman C under cost category
executives. Create three cost centres airport, roads
and building under category project.
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101. Applying cost centre to ledger:
Goto gateway of tally> account info>
ledgers> alter > select the ledger
conveyance set cost centre are applicable
to yes
Cost centre allocation in voucher entry:
Goto gateway of tally> accounting
vouchers >F5 : payment
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102. The purpose of compiling data is to present it in
comprehensible accounting reports.
Features in reports:
Drilldown : press entre at any record to drill down step by
step
Voucher in alter mode : insert/ alter/ delete/cancel
vouchers
Track able : press esc key to go back
Display details : to explode a record press shift+enter
same to collapse.
Master alteration : to alter ledger/ group/ voucher press
ctrl+enter.
Hide report lines in display : press alt+r key on the record
to be hidden
Restore report lines in display : press alt+u key
Restore all hidden lines in display : press ctrl+u key
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103. Gateway of tally> display
Tally reports are classified into two major areas
accounting reports and inventory reports. Each
area is further grouped into books and statements
Trial balance : provides you a report on account
balances sorted by groups, for all the accounts of
the selected company.
The day book : contains all vouchers for the day,
including inventory vouchers.
Account books : it is used to display cash/bank
books, all entries pertaining to a ledger, group
summary, group vouchers, register details as
sales, purchase and journal.
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104. Statement of accounts : these pertain to cost
centres and outstanding analysis.
The cash and fund flow : it has two types
cash flow i.e. inflow and outflow of clash and
current assets, fund flow for inflow and
outflow capital.
List of accounts : gives the tree structure of all
your masters, namely, groups, ledgers, stock
items, cost centres, currencies, etc.
Exception reports : are those reports that
track unusual transactions or balances. E.g..
Negative ledgers, negative stocks etc.
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105. Books of accounts record the transaction
details as entered.
For example, cash book records all
transaction affecting cash and sales book
records all sales transactions.
Display>account books>cash/bank books
Select the bank account>press enter to
display ledger monthly summary>highlight a
month>press enter to display ledger voucher
screen
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107. Financial statements: show summary totals,
ratios and statistics, analyzing a company’s
financial data in a wide variety of ways.
Includes balance sheet, Profit & lost A/c, and
cash flow analysis.
Accounts reconciliation statement : shows
flow of accounts from opening balance to the
effect of transactions on closing balance. E.g.
Trial balance
Select f12:configure set opening balance
parameter to yes
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109. Day book : List all transactions made over
a particular day and by default displays
last voucher entry.
Gateway of tally>display>daybook
Press f2:period or alt+f2: to list all
transaction over a period
F4: chg vch : to select a particular voucher
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111. Sales register(sales day book)
Gateway of tally>display>accounts
book>sales register
By default, all registers display monthly
summary of transactions and closing
balances
Press enter to see sales voucher register
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112. Columnar sales register
Select the option F5: columnar from the
button bar, in sales voucher register
screen.
Then select the type of
column from the screen
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113. All items(automatic columns)
Chg Vch : use this option to view a different
register from within existing register
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114. Registers for statistics : drill down a
specific type of voucher to view details
Gateway of tally>display>statements of
account>statistics
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115. Group summary : gateway of
tally>display>Account books>group
summary>group name e.g. duties and
taxes.
Shows the closing balances of accounts
falling under the selected group over a
period.
To view led-wise display of group summary
. Press F5:Led-wise, toggles with grouped
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116. List of vouchers
Ledger vouchers: List of voucher for
current month.
Gateway of tally> display> Account book
>ledger>ledger account
Ratio Analysis
The Stock summary : It is the statement of
stock-in-hand on a particular date and get
updated every transaction.
Gateway of tally>stock summary
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117. The ratio analysis statement : Is a single
sheet report indicating company’s
performance based on values and key
indicators, over a selected period and
companies financial condition.
Screen divided into two parts:
Principal Groups: key figures
Principal Ratios: two pieces of financial data to
obtain a comparison
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118. Cost category summary displays
information on all cost categories to which
you have allocated the voucher
transactions.
Gateway of tally> display> statements of
accounts> cost centers> category
summary
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119. Receivables : It displays all outstanding
receivables invoice by invoice till date. It
only considers those accounts that have
Bill-by-Bill option activated.
Gateway of tally>Display>Statements of
accounts> Outstandings >receivables
Press F12: Configures bill-wise
outstanding report
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120. Negative Ledger: Accounts that have obverse
balances, i.e., that are opposite to the nature of
account.
Gateway of tally>display>Exception
Reports>Negative ledgers
Overdue Payables: List of purchase bills that are
overdue as on current date
Gateway of tally>display>exception reports>overdue
payables.
Press F6 : Age-wise analysis(bill date or due date)
We can produce reminder letter from ledger
outstanding report. Click the print from the button bar
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121. Balance sheet and P&L A/C :
Configuring:
Show vertical balance sheet
British/Europe configure has liabilities and assets
Indian/Asian configure display source funds and
application of fund
Method of showing the balance sheet
Liabilities/assets
Assets/liabilities
Format of balance sheet : horizontal/vertical
Columnar balance sheet : for a different date to
compare with current one
Show quarterly balance sheet
Show gross profit set to yes
F11 : features : can set Income/Expense statement
instead of P & L Tally 9 12
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122. Gateway of tally of an account with inventory
Inventory information : The menu lists the
masters, through which you can provide Tally
the details of your company’s inventory.
Integrate account with inventory :
If account with inventory is set to yes the
stock/inventory balance figure is updated with
the inventory records.
If the option account with inventory is set to
No the inventory books are ignored closing
stock balance is entered manually.
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123. Inventory info contains following masters:
Stock group
Stock categories
Stock items
Godowns
Budgets
Voucher types
Units of measure
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124. Stock group : are similar to group in
accounting masters. They are helpful in the
classification of stock items. They enable
easy identification and reporting of stock
items in statements.
Gateway of tally>
Inventory info>Stock
Groups>create
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125. Stock Categories : Similar to cost categories.
Offers the benefits of classifying an item in
another dimension.
Option becomes available if you set maintain
stock categories to yes in F11: feature
Allows parallel classification of stock items.
You can create categories like floppy disk and
floppy drives.
Stock query option in statements of inventory
display the strength og stock categories
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126. Using Multiple stock category you can use the
following masters :
Groups
Items
Godowns
Units of measure : stock items are purchased
or sold on the basis of quantity. You need to
create units of measure for all the stock items
Gateway of tally>Inventory Info>Units of
measure>create
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129. Godowns/Locations : It is the place to
store goods which may be a warehouse,
rack,shelf,bin or anything. Same as
process/ contractor/ third party job worker.
To switch on godown management : F11 >
Inventory features
Gateway of tally>Inventory
info>godowns>create
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131. Price List : Useful for order and invoices. An
up-to-date price list helps in decision making
even at lower levels of the organization and
quickens sales process.
Creating Price Levels : F11:features >
Inventory features
Allow Invoicing set to yes
Use multiple price levels to yes
Type out the price levels, one by one in
company price levels
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132. Assigning ledger accounts to price levels
You can choose the price level that you
want to assign to the ledger by selecting
the price level from the price levels list in
the pricing level applicable field.
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133. Price levels in voucher entry – Invoicing
You can configure the entry so as to
prevent the usage of a different price list
than the one that is set.
Gateway of tally> F12:Configure>
Invoice/orders Entry
Example : gateway of tally> accounting
vouchers> F8:Sales
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134. Reorder levels : signify the quantity of a stock
item in hand, after reaching which you must
place order for supply. The points to consider
while deciding the reorder levels:
Lead-time for suppliers to deliver the stock
Delivery time specified
Stock in hand to satisfy orders
Gateway of tally>inventory info>reorder levels
To enable this option : allow purchase order
processing enabled by F11: feature
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136. Obtain reorder status : gateway of tally>
display> statements of inventory> reorder
status
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137. Inventory vouchers perform the same
function in the inventory system just as
accounting vouchers.
If you have not integrated accounts with
inventory, inventory vouchers will not have
any impact on the balance sheet stock
figures.
Gateway of tally>Inventory vouchers
Set the option integrate account and
inventory to yes in F11:feature
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138. Five kinds of inventory vouchers:
Receipt notes and delivery notes
Rejection – in and rejection – out
Sales order and purchase order
Stock journal
Physical stock
Enabling F11 :feature
Set use tracking number to yes to activate delivery
note and receipt note voucher
Set use rejection notes to yes to activate rejection in
and out vouchers
Set allow purchase order processing and allow sales
order processing to yes to activate purchase order and
sales order vouchers
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139. Receipt note voucher : used for recording
goods received
F9:rcpt voucher
Details recorded : Reference, ledger
account, supplier’s name, address and
dispatch details, name of stock item,
tracking detail, godown, quantity, rate,
amount, narration
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140. Rejection-In voucher( sales returns) and
Rejection-Out voucher(purchase returns) :
record goods that are rejected or returned
by the customer
Rejection-In :Ctrl+F6, records return of
goods from customer
Detail recorded : Ledger account,
customer name, address supplementary
detail, name of stock item, tracking detail,
order detail, amount, narrationTally 9 14
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141. Rejections out voucher : records goods
that are rejected and returned to supplier
Alt+F6
Details recorded : Ledger account,
supplier’s name, address, and dispatch,
name of stock item, tracking details, order
details, godown , quantity, rate, amount,
narration
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142. Stock journal voucher : record stock
transfers from one location to another
Alt+F7: Stk Jrnl
Details recorded : Reference, name of
source and destination location, name of
stock item, godown, batch, quantity, rate,
amount, narration
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143. Bill of material : list of constituent items
along with quantity details that can be
allotted towards manufacturing a certain
product, by-product or likewise. Can be
used by manufacturing organizations.
Gateway of tally> F12:configure> Accts/
Inv info >set allow component list details(
bill of materials) to yes
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144. Creating a manufacturing journal
Gateway of tally> Inventory info> voucher
type>create
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145. Creating a bill of material (bom) is created
only for those items that are being
assembled in-house.
Gateway of tally> Inventory info> stock
item>create
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146. Order processing : is placing of order with
suppliers for purchase to be made from
them or receive orders from customers for
the purpose of selling. In tally, order
processing is linked to inventories,
allowing tracking of order position for stock
item.
Allow purchase order processing and allow
sales order processing to yes
Gateway of tally> display>day bookTally 9 14
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147. Creating sales order : exactly like
purchase order entry. Also depends upon
configuration settings
Gateway of tally> inventory vouchers> F5:
sales order
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148. View order position : view the order
position in stock summary
Gateway of tally> stock summary>
F1:detailed
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149. Physical stock voucher is used for
recording actual stock which is verified or
counted. It could happen that the book
stocks and the physical stock do not
match.
Gateway of tally>inventory voucher>
F10:phys stk
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150. Invoicing or sales invoicing is almost similar
to sales voucher entry. You will use the same
voucher but select as invoice option to turn it
into a sales invoice. Purchase invoices are
recorded through normal purchase voucher
entry and it does not have provision of being
converted into an invoice format for every
purposes. Advantage is that it enables
automatic calculation of taxes and duties. You
can print your invoices
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151. Allow invoicing is set to yes in F11:Feature to
create sales invoice.
To create purchase invoices, ensure allow
invoicing is set to yes and also enter
purchase in invoice format is set to yes in
F11:feature
Gateway of tally>accounting vouchers
Set show inventory details to yes in
F12:configure
Under the group sales and purchase
accounts, ensure inventory values are
affected is set to yes
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152. Configuring invoice
Gateway of tally>accounting
vouchers>F8:Sales/F9:Purchase
F12:Configure
Complete accounting allocation in
order/delivery notes set to Yes
Allow modification of all fields during entry set
to yes
Printing invoice : gateway of
tally>F12:configure>Printing>Sales
Transactions>Sales Invoice
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154. Voucher class for stock journal
Stock journal allows you to handle transfers
from one location(godown) to another, for
companies having multi-location inventory and
at least two locations/godowns created
Account info>voucher types>create
Select stock journal voucher from the list of
voucher types
To create a stock journal voucher class, enter
a name of class field
To create a class for inter-godown transfer set
use class for inter-godown transfer to yes
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155. Stock summary: statement of stock-in-
hand as on particular date. It is updated at
every transaction in real and provide the
current stock position.
Gateway of tally>stock summary
Stock summary configuration:
F12:configure
Displays the flow of stock: opening
balance, goods inward, goods outward,
closing balance
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156. Stock item: monthly summary of stock item
Display>inventory books>stock item
Group summary: summary of stock group
Display>inventory books>group summary
Sales order book: details to sales order
placed
Display>inventory books>sales order books
Purchase order books : details of all purchase
order placed
Display>inventory books>purchase order books
Stock transfer : stock journal register which
shows monthly movement of stock.
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157. Stock valuation method: can be used to
view effects of different methods on the
value of stock. Set up to have a different
stock valuation method.
Stock summary>new column button
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158. Analysis of inventory movement: generally
used for comparative study, where goods
received but bills not received and goods
dispatched but bills not raised are
considered.
Gateway of tally>display>inventory
books>movement analysis
Analysis is by stock movement, categories,
financial group or ledger
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159. Movement analysis(stock group analysis)
Displays the total inward and outward
movement of all items in a selected stock
group. The quantities displayed are the actual
quantities of movement.
Item voucher analysis: This report gives the
value details of all transactions for a selected
stock item from a particular supplier or to a
particular customer.
Stock category analysis: Displays the
movement of stock items of a selected stock
category. The inward and outward movement
of items are summarized.
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160. Transfer analysis : gives the movement
detail for each type of stock journal. This is
a very useful costing and waste analysis
tool
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161. Godown/location summary: displays the stock
summary for different godown/location. While
main stock summary shows the stock position
for the entire company on a particular date,
the godown/location summary is a statement
of stock-in-hand at each location on a
particular date.
Gateway of tally>display>statement of
inventory>godown/location
Press shift+enter to expand and collapse the
group.
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162. Purchase bills pending: Option is created
when the option tracking number is set to yes
in f12 features. It lists all the incomplete
purchases where goods may have received,
but not fully invoiced.
Gateway of tally>display>statement of
inventory>purchase bills pending
Negative stock : report displays a list of stock
items that have a negative closing balance at
the end of a specified period.
Gateway of tally>display>exception
reports>negative stock
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163. Ageing analysis report :generated on the
basis of bill break up performed for the
vouchers entered for a particular customer or
supplier. It helps you to know all the
outstanding or unclear vouchers of that
customer or supplier. It is applicable only if
batchwise stock is maintained.
Display>inventory books>ageing analysis
Press f6 for changing period
Alt+s for changing ageing style
Alt+b for expired batches only
Alt+a to show/hide amounts
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164. Statutory reports: the menu will appear
depending upon statutory features
enabled. F11 features>statutory and
taxation
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165. Concept of VAT: Value added tax(VAT) is based upon
the value addition to the goods and the related VAT
liability of the dealer is calculated by deducting the
input credit from the tax calculated on sales during the
payment period.
VAT works in two different ways:
1. If VAT registered business receives more output tax
than the taxes paid as input, they will need to pay the
difference to the commissioner of taxes.
2. If the input tax paid is more than the output tax
collected, you carry forward the input credit and
adjust it with the output tax, input credit is refunded to
you by the government, you receive refunds for input
credit on exports within a period of three months
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166. General terms:
Input tax: tax paid on purchase
Output tax: tax charged on sales
Input credit: amount of input tax that is
permitted to be set off against output tax
Composite dealer: dealer with annual
gross turnover not exceeding a certain
threshold can opt for a composition
scheme whereby they will pay a tax as
small percentage of their gross turnoverTally 9 16
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167. VAT Rates:
VAT @4% : Largest number of goods comprising
basic necessity items such as drugs and
medicines, agricultural, industrial inputs, capital
goods are declared under 4% VAT category.
Exempted from VAT : 46 commodities under the
exempted category, includes natural and
unprocessed products in unorganized sectors as
well as items.
VAT @1% : Goods like gold, silver etc.
VAT @12.5% : few goods like liquor, lottery ticket,
petroleum products, as the prices of these are fully
market-determined.
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168. VAT in tally: It supports following features:
1. Quick and easy setup
2. Fast and error free voucher entry
3. Pre-defined list of sales and purchase
classification
4. Complete tracking of each transaction
5. Pricing of tax invoice
6. VAT computation report
7. Better VAT return management
8. Monthly return
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169. Gateway of tally>account info> f11
feature>statutory & taxation> set enable
value added tax and set/alter VAT detail to
yes
Set/alter VAT details to yes will prompt with
VAT details screen
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170. VAT classification : list of VAT rates which describe the
nature of the business activity and the type of
transaction.
Input VAT @4%
Input VAT @1%
Input VAT @12.5%
Output VAT @1%
Output VAT @4%
Output VAT @12.5%
Purchase-capital goods
Purchase-Exempt
Purchase from unregistered dealers
Depending upon the type of business, type of
transaction, and the statutory requirements of your state,
you will need to select the appropriate classifications
from the list during ledger creation, voucher entries ,etc.
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171. Ledger masters: VAT classification will be
displayed as a dropdown list in the ledger
master. The ledgers that are affected by
VAT are:
Purchase Ledger
Sales Ledger
Duties and taxes ledger
Direct expenses/incomes
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172. Creating a purchase ledger for VAT
Gateway of tally>accounts info>ledger>
create/alter
Set used in VAT return to yes if you wish to
select VAT/TAX class for this ledger. Tally
gives the facility to the user to either have the
classification selected in the ledger master or
select different classification on each
transaction. The rest of the ledger creation
process is the same as in default tally.
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174. Creating a purchase voucher(as invoice) for VAT :
As item invoice the selection and display of VAT
classification in the vouchers differ according to the
settings in F12:configuration screen
Use common ledger A/c for item allocation when
set to no, you can see the VAT/TAX class at the
header region of the screen. Set this to yes when
you want to use common ledger for all items.
Allow selection of VAT/TAX during entry when set
to no VAT/TAX class will not be displayed in the
voucher screen and the classification will be taken
from the ledgers
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175. Printing configuration : F12:configure>
printing>purchase transaction>purchase
voucher
Enable the column print VAT% column rate of
VAT and VAT classification is printed
Enable VAT analysis to print VAT amount on
the total net value.
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176. Payment of VAT in Tally:
The journal and payment voucher entries
for the payment of VAT are used
Journal entry
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