Wednesday, October 29, 2008

How to Use Groups in Tally

How to Use Groups in Tally

Introduction

Tally follows the modern way of managing accounts called 'Single Ledger' concept of accounting. This is in direct contrast to Subsidiary Ledger Accounting. All financial entries are made using ledgers or account heads. Ledger accounts are created to identify transactions.

The single ledger concept avoids the need for sub-ledgers and corresponding control accounts in General Ledger. Tally allows you to group ledger information to generate meaningful reports that are compliant with laws. Groups in Tally classify and identify account heads according to their nature. This helps in presenting summarized information.

Classification of Account Heads

Usually, grouping of accounts is done only when reports are needed. This may result in delay in preparing the reports. Tally allows you set up chart of accounts.
You can group the ledger accounts while creating them. This will enable your reports and statements to reflect the desired classification at any point. In Tally, you can also re-group the ledgers (with some minimal restrictions) if re-classification is necessary. Re-grouping becomes necessary whenever there is a change in the nature of information. However, re-grouping can be done only by users who have authorised rights.

At the highest level of grouping, accounts are classified into capital or revenue — specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set of reserved groups and allows you to modify their names or create sub-groups.

Sub-Groups

A Sub-Group behaves exactly like a group and is created under a group.
Concept of Sub-Groups
Groups have a hierarchical structure. The main group of accounts that determine the entire accounting and their presentation are the asset, liability, income or the expenditure. These main groups ascertain whether a ledger affects Profit & Loss Account as a revenue item or if it affects the Balance Sheet.
The Reserved Primary Groups and subgroups are:

Primary Groups of Capital Nature

1. Capital Account
a) Reserves and Surplus [Retained Earnings]
2. Current Assets
a) Bank Accounts
b) Cash-in hand
c) Deposits (Asset)
d) Loans & Advances (Asset)
e) Stock-in-hand
f) Sundry Debtors
3. Current Liabilities
a) Duties and Taxes
b) Provisions
c) Sundry Creditors
d) Fixed Assets
4. Investments
5. Loans (Liability)
• Bank OD Accounts [Bank OCC Accounts]
a) Secured Loans
b) Unsecured Loans
6. Suspense Account
7. Miscellaneous Expenses (Asset)
8. Branch/Divisions
9. Sales Account
10. Purchase Account
11. Direct Income [Income Direct]
12. Indirect Income [Income Indirect]
13. Direct Expenses [Expenses Direct]
14. Indirect Expenses [Expenses Indirect]
Example Group Creation (single) :
Gateway of Tally - Accounts Info –Group (Enter)


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Create a Group :
Name : Commission
Under : Indirect Exp


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Accept the screen and

Press Esc
Now Create Ledger (single)
Gateway of Tally - Accounts Info –Ledger (Enter)



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Create Legers Like Bellow :


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Press Ecs Goto Gateway of Tally and Select Voucher Enrty :


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Voucher Entry

Voucher Entry :

Note: Create All required Ledgers ( Refer Ledger Creation )

Problem example :

1) 01.04.2008 Cash deposit on bank 5000

2) 01.04.2008 Office Stationery Exp 50

3) 01.04.2008 goods purchased 500

4) 01.04.2008 sale 800

Step 1 for Voucher Entries:

Gateway of Tally –> Accounting Vouchers (Press Enter)


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And Press F4 Contra for Bank Depostion

Bank A/c Dr 5000
To Cash A/c 5000
(Being Amount cash deposition )
And accept screen Y




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Press F5 to Select Payment for Office Stationery Exp :

Office Stationery A/c Dr 50
To Cash A/c 50

(Being Amount Stationery purchase )
And accept screen Y


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Press F9 to Select Purchase a/c:

Purchase A/c Dr 500
To Cash A/c 500
(Being Amount Stationery purchase )
And accept screen Y


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Press F8 to Select Sales Voucher

Cash A/c Dr 800
To Sales A/c 800
(Being Amount cash sales )
And accept screen Y

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Thursday, October 23, 2008

Types of Vouchers

Types of Vouchers
Tally is pre-programmed with a variety of accounting vouchers, each designed to perform a different job.
The standard vouchers are:
1. Payment Voucher
2. Receipt Voucher
3. Contra Voucher
4. Sales voucher
· Sales Orders
· Sales Vouchers/Invoices
· Delivery Notes
· Rejection In
5. Purchase Voucher
· Purchase Orders
· Purchase Vouchers
· Goods Receipt Notes
· Rejection Out
6. Journal Voucher
· Credit Notes
· Debit Notes
· Journal
· Memo Voucher
· Reversing Journal
· Stock Journal
· Physical Stock
You can alter these vouchers to suit your requirement and also create new vouchers.
For example, if you wish to distinguish between cash and bank payments you can create vouchers to do this.
The function of each voucher type is explained.

More:
F4 -->
Contra Entry
F5 --> Payment Entry
F6 --> Receipt Entry
F7 --> Journal Entry
F8 --> Sales Entry
F9 --> Purchase Entry



Friday, October 3, 2008

Create Ledgers in Tally9.2.12

Ledgers Introduction
Ledger Creation is the very important in tally

A Ledger is the actual account head to which you identify a transaction. In Tally, you pass all accounting vouchers using Ledgers. However, all Ledgers have to be classified into Groups. Hence a thorough understanding of account classification is important for working with Ledgers. The creation and usage of Groups in Tally has been explained earlier. Now you will learn how Tally works with Ledgers.

Gateway of Tally --> Accounts info --> Ledger --> Create (Single Ledger)


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1. Ledger Name : Printing & Stationery
Under : Indirect Exp

And Accept it --> yes/no

And create some more ledger like :
2. Ledger Name : Bank Account
Under : Bank Accounts

And Accept it --> yes/no


3.Ledger Name : Postage A/c
Under : Indirect Exp

And Accept it --> yes/no

4.Ledger Name : Misc Exp
Under : Indirect Exp

And Accept it --> yes/no

5.Ledger Name : Sale A/c
Under : Sales Account

And Accept it --> yes/no
6.Ledger Name : Purchase A/c
Under : Purchase Accounts

And Accept it --> yes/no

( Next Lesson How to Enter Vouchers )

Thursday, October 2, 2008

Create a Company (or) File in Tally9.2.12

How to start Tally 9.2.12 If u have tally 9.2.12 software find tally.exe file and select to run tally When you open tally at first time in your system screen appear like bellow:



Select Create company ( Press Enter )

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Now start enter

File Name : Lesson1

Mailing Name : Lesson1

Address : Hyderabad

Statutory Compliance for : India

State : Andhra Pradesh

Pin Code : 500082

Currency Symbol : Rs:

Maintain : Accounts with inventory

Financial Year : 1-04-2008

Books Begining From : 1-04-2008

Use Security Control : No

and Enter for Accept yes

(Next Lesson Create Ledgers)

Monday, September 29, 2008

Tally 9 advantages



The Tally 9.2 Advantage

Tally 9 is the ultimate business solution, designed to meet the growing needs of your business. When you use Tally 9, you will see clear business benefits accrue right from the start. The following are the powerful advantages that you can enjoy with this versatile and robust solution:

  • Expand your business - with the concurrent multi-lingual capability and multi-currency features that allow you to transact beyond geographical boundaries, without language barriers.
  • No need to hire specialised resources – since Tally 9 is very simple to learn and the easy interface enables you to navigate the software without difficulty.
  • Blazing Speed - provides you with the information you want - FAST.
  • Unmatched Scaleability –Tally 9 adapts to the current and future needs of your business, irrespective of its size or style.
  • Sheer Power – Tally 9 has the ability to handle huge volumes of transactions without compromising on speed or efficiency.
  • Real-time access to information – enables quick decision through fast and easy sharing of data from Tally.
  • Better cash flow and savings on interest - by using the ‘receivables and payables’ management feature, to help you ensure on-time collections and generate reminder letters.
  • Amazing Accuracy – Tally 9 provides user-definable templates for fast, accurate data entry.
  • Manage your future dealings with bad debtors and persistent defaulters - using the payment performance of debtors feature, to identify them.
  • Faster and error-free invoicing and data entry – using the multiple price levels feature to pre-define item rates for specific categories of customers.
  • Identify products with high or low margins - with the profitability analysis feature, that provides you with product-wise and invoice-wise profitability.
  • Avoid stocking excess items and ensure that you don’t run out of essential stock - by using the reorder feature, to set reorder levels for any given period.
  • Better planning and dramatic improvement in co-ordination of your operations with reduced paperwork – as a result of using the integration across functions feature.
  • Reduce costs and increase productivity – using features such as inventory management, receivables and payables management etc.
  • Accurate information tracking, quicker data entry and retrieval - thanks to the integrated system that ensures real-time linking of accounts and inventory.
  • Get a better understanding and analysis of performance levels for various periods and divisions - with the advanced MIS feature.
  • Enjoy better planning and forecasting – using sophisticated analytical tools that help you forecast and examine possible scenarios, and give you the ability to view provisional reports.
  • Save time and reduce paperwork - by automating your Payroll process with the Payroll Feature in Tally 9