1

Maintaining Group Company in Tally.ERP 9

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. This is mandatory in many developed countries and currently shareholders would rather know the performance of the group as a whole and not the performance of individual constituent companies. Tally.ERP 9 simplifies the task of consolidation of accounts. You can consolidate the accounts of any number of companies as well as keep them separate. The first step is to create a Group Company, which is simply a name and identity given to the merged accounts of constituent (member) companies of the group. A group company may also include other group companies.
No te : D o n o t co n f u s e th e wo r d G ro u p to r ef e r to a m e mb er o f th e g ro u p! I t si m pl y co n ta i n s th e co n so l i da t e d a c co u n ts o f m em b er co m pa n i e s. In o th e r wo rd s, i t i s th e pa r en t co m pa n y u n de r wh i ch yo u h a ve th e i n di vi du a l co m pa n i es .

Accounts Information

Accounts Info. menu lists the masters like Groups, Ledgers and Voucher Types through which you can provide the details of your company's accounts. Go to Gateway of Tally > Accounts Info.

Accounts Info. Menu Options

Accounts Information contains the masters. Each master has Create, Alter and Display functions.

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Single Group option is useful when you wish to work on one Group at a time. Multiple Group option is very useful when you are working on many sub-groups at a time and saves a lot of time. Once a sub-group is created, it behaves exactly like a Group. Create The Create option is used to create new masters. Display The Display option is used to view the Master information. Display mode. Alter The Alter option allows you to view and make the necessary changes to the master information. This does not allow the creation of masters. Master information cannot be modified in

Groups
Groups are collection of Ledgers of the same nature. You can group the Ledger accounts under the required Groups at the time of creating the chart of accounts or you can alter them at any time. The Group behavior is classified into Capital or Revenue and more specifically into Assets, Liabilities, Income and Expenditure.

Pre-defined Groups in Tally.ERP 9

By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The user can create any number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub Group. There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary Groups and 13 are SubGroups. 15 Primary Groups Branch / Divisions Capital Account Current Assets Current Liabilities Direct Expenses Direct Incomes Fixed Assets Indirect Expenses Indirect Incomes Investments Loans (Liability) 13 Sub Groups Bank Accounts Bank OD A/c Cash-in-hand Deposits (Asset) Duties & Taxes Loans (Asset) Provisions Reserves & Surplus Secured Loans Stock-in-hand Sundry Creditors & Advances

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Misc. Expenses (ASSET) Purchase Accounts Sales Accounts Suspense A/c Sundry Debtors Unsecured Loans

Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which are Capital in nature and 6 Primary Groups appear under Profit & Loss Account which are Revenue in nature. 13 Sub Groups are classified under the 15 Primary Groups and they appear in the Balance Sheet. Pre defined Sub Groups Bank Accounts Bank OD A/c Cash-in-hand Deposits (Asset) Duties & Taxes Loans & Advances (Asset) Provisions Reserves & Surplus Secured Loans Stock-in-hand Sundry Creditors Sundry Debtors Unsecured Loans Under Current Assets Loans (Liability) Current Assets Current Assets Current Liabilities Current Assets Current Liabilities Capital Account Loans (Liability) Current Assets Current Liabilities Current Assets Loans (Liability)

A Discussion on Each of the Reserved Groups

Non Revenue Capital Account

Primary Groups

This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share Capital, Partners' Capital A/c, Proprietor's Capital Account and so on. Reserves and Surplus [Retained Earnings] This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so on.

Current Assets
Current Assets record the assets that do not belong either to Bank Accounts or to Cash-inHand sub-groups.

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Bank Accounts Current account, savings account, short term deposit accounts and so on. Cash-in hand Tally.ERP 9 automatically creates Cash A/c in this group. You can open more than one cash account, if necessary.
No te : An a cco u n t u n d er Ca sh- i n- ha nd g ro u p o r B a n k Acc ou nt s/B a nk O C C A /c gro u p i s pri n t ed a s a s e pa ra t e C a sh Bo o k i n th e t ra di ti o n a l C a s h Bo o k f o r ma t a n d do es n o t f o rm pa r t o f th e L ed g er .

Deposits (Asset) Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company (not received by the company, which is a liability). Loans & Advances (Asset) This records all loans given by the company and advances of a non-trading nature (example: advance against salaries) or even for purchase of Fixed Assets. We do not recommend you to open Advances to Suppliers account under this Group. For further details, please refer to the section on Common Errors.

Stock-in-hand This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods. The balance control depends on whether you have selected Integrated Account-cum-Inventory option while creating the company. (refer to Company creation section for more details) Let us consider these options: Integrated Accounts-cum-Inventory This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures from the inventory records and provides a drill down to the Stock registers from the Balance Sheet. You are not allowed to directly change the closing balance of an account under this group. You are allowed to pass transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock. Non-integrated Accounts-cum-Inventory If Integrated Account-cum-Inventory option is set to No, it ignores the inventory books figures and picks up manually entered closing stock balances from the ledger account created. This provides the facility to maintain accounts separately and inventory separately. You are not allowed to pass transactions if your accounts that come under this Group. It allows you to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they are the only accounts for which the closing balances can be directly altered (by an authorised user only).

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Sundry Debtors For customer accounts refer to common and possible errors in grouping of accounts section.

Current Liabilities
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry Creditors Duties and Taxes Duties and Taxes contain all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and the total liability (or asset in case of advances paid) and the break-up of individual items. Provisions Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions. Sundry Creditors For trade creditors, refer to common and possible errors in grouping of accounts section.

Investments
Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts and so on. This allows you to view the total investments made by the company.

Loans (Liability)
Loans that a company has borrowed, typically long-terms loans. Bank OD Accounts [Bank OCC Accounts] Tally.ERP 9 provides you with distinct types of Bank Accounts, Bank OCC A/c To record the company's overdraft accounts with banks. For example, Bill Discounted A/c Hypothecation A/c s etc. s and

No te : An a cco u n t u n d er B a nk O C C A /c gro u p i s pri n t ed a s a s e pa ra t e C a sh Bo o k i n th e tra di ti o n a l C a sh Bo o k f o r ma t a n d d o e s n o t f o rm p a rt o f th e L ed g er .

Secured Loans Term loans or other long/medium term loans, which are obtained against security of some asset. does not verify the existence of the security. Typical accounts are Debentures, Term Loans, and so on.

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Unsecured Loans Loans obtained without any security. Example: Loans from Directors/partners or outside parties.

Suspense Account
In modern accounting, many large corporations use a Suspense Ledger to track the money paid or recovered, the nature of which is not yet known. The most common example is money paid for Traveling Advance whose details will be known only upon submission of the Travelling Allowance bill. Some companies may prefer to open such accounts under Suspense Account. Loans and Advances (Asset) group. The Suspense Account is a Balance Sheet item. Any expense account even if it has 'suspense' in its name, it should be opened under Revenue group like Indirect Expenses and not under Suspense Account group.

Miscellaneous Expenses (Asset)

This group is typically used for legal disclosure requirements such as Schedule VI of the Indian Companies Act. It should hold incorporation and pre-operative expenses. Companies would write off a permissible portion of the account every year. A balance remains to an extent that cannot be written off in Profit & Loss Account. Tally.ERP 9 does not show loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss Account balance is displayed separately in the Balance Sheet.

Branch/Divisions
This maintains ledger accounts of all your company's branches, divisions, affiliates, sister concerns, subsidiaries and so on. Tally.ERP 9 permits Sales and Purchase transactions to take place with accounts opened here. Remember, these are their accounts in your books and not their books of accounts. Just treat them as any other party account. If you wish to maintain the books of a branch/division on your computer, you must open a separate company. (Tally.ERP 9 allows maintenance of multiple company accounts).

Revenue

Primary Groups

Sales Account
You can classify your sales accounts based on Tax slabs or type of sales. This also becomes a simple mechanism for preparation of Tax returns. Examples:

y y

Domestic Sales Export Sales

Now under Domestic Sales open the following ledgers:

y y

Sales (10%) Sales (5%)

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y
Sales (exempt)

You can even open an account as Sales Returns under the group Domestic Sales to view your net sales after returns (or the returns may be directly passed through Journal against the specific Sales account).
No te : D o n o t cr ea t e cu sto me r a c co u n ts u n d er th i s g ro u p. F o r mo r e d eta i l s , r ef er to c o m mo n a n d po ssi bl e err o rs i n gro u pi n g o f a cco u n t s s e cti o n .

Purchase Account
This is similar to sales accounts, except for the type of transactions.

Direct Income [Income Direct]

These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under Sales Accounts. You may also use this group for accounts like Servicing, Contract Charges that follow sales of equipment. For a professional services company, you may not use Sales Account group at all. Instead, open accounts like Professional Fees under this group.

Indirect Income [Income Indirect]

These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.

Direct Expenses [Expenses Direct]

These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

Indirect Expenses [Expenses Indirect]

All administrative, selling or non-direct expenses. Profit & Loss Account is a reserved primary account in Tally.ERP 9. You can use this account to pass adjustment entries through journal vouchers. For example, transfer of profit or loss account to Capital or Reserve account.

Common and Possible Errors in Grouping and Account Classification Debtor/Creditor classification
Accounts of parties with whom your company is trading should be opened under any of the following groups (or sub-groups under them):

y y y

Sundry Debtors Sundry Creditors Branch/Divisions

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Sales and Purchase account groups are meant for revenue accounts and are reflected in the Profit & Loss Account. If you open party accounts under these groups, it becomes difficult to pass sales or purchase voucher transactions. For example, in a sales voucher transaction entry, you must debit an account, which can be sundry debtor, branch/division or even a sundry creditor. Moreover, other facilities like bill-wise allocation and tracking will not be available unless the accounts belong to one of these groups.

Opening two accounts of the same party

Tally.ERP 9 classifies debtors, creditors and branch/divisions for convenience. This helps you in the process of keeping the accounts of a particular group together during display and analysis. Thus you can pass both sales and purchase entries for a party account placed under Sundry Debtors. Use the classification depending on the most natural group for the party. For example, parties from whom you buy frequently can be placed under Sundry Creditors, as that is the natural place to look for their account. Tally.ERP 9 does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account. Therefore, you need not open two accounts for the same party - one under Sundry Debtors and another under Sundry Creditors. Tally.ERP 9 restricts opening of two identical ledger accounts. In such cases, you may decide to circumvent by marking one account as "A & Co - S/Dr" and another "A & Co - S/Cr". This will allow you to have two accounts of the same party under two groups, but you will lose the advantage of analyzing net position at a single instance. It is always better to maintain a single account to obtain best benefits. Expenditure items are entered under Liabilities group. For example, the expenditure item Rates & Taxes under the group Duties and Taxes. The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other statutory expenses should be placed under Indirect Expenses. Simply adhering to the reserved groups may be sufficient for many organizations. For greater diversity, Tally.ERP 9 allows you to create your own groups, either as sub-groups or primary groups. Groups can be sub-classified to practically an unlimited level, giving you a virtual accounting tree. At the lowest level, of course, would be the ledger account.

No te : W h i l e i t i s n e c essa ry to a s si gn ev e ry l ed g er to a gro u p/su b- gro u p, i t i s n o t es s en ti a l to h a v e y o u r o wn su b-cl a s si f i ca ti o n o f a c co u n t s; you ma y si mpl y u s e th e re se rv e d gro u ps f o r g ro u pi n g yo u r l e dg e r a cc o u n ts .

Creating a Group

In Tally.ERP 9 there are two options for creating Groups: 1. 2. Single Group Multiple Groups We can create only one Group by using Single Group creation screen. We can create multiple Groups by using Multiple Group Creation screen.

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Creating a Single Group

Group is a collection of Ledgers of the same nature, Tally.ERP 9 allows you to create groups as per your requirements.

Go to Gateway of Tally > Accounts Info. > Groups > Create under Single Group

The Group Creation screen is displayed as shown:

Name of Group Enter the name of the Group to be created. For example Administrative Expenses in the name field.

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Alias Enter an alias name to allow access to the group using the Alias in addition to its name or leave it blank. For example, for Administrative expenses, you can enter Office Expense or even an alphanumeric code, say E001, as an alias Under Specify under which existing (Parent) group the sub-classification is required.
No te : I f i t i s a n ew p ri ma r y gro u p, sel ec t P ri ma ry (r e qu i re m en t o f a n e w p ri ma r y gro u p i s ve ry ra r e , bu t th e o pti o n exi s ts) . C r ea ti o n o f n e w P ri ma ry Gro u p i s n o t a l l o w ed i f Al l o w Ad va n c ed en t ri e s i n Ma s te rs i s s et to N o i n F12 : Co nf i g ure . Yo u ca n a l so cr ea t e a n ew P a ren t Gro u p by u si n g Al t + C .

Tally.ERP 9 has the flexibility of creating the related Masters from specified screens:

Button L: Ledgers V: Vch Types

Shortcut Keys Ctrl+L Ctrl+V

Behaviour Navigate to Ledger Creation screen Navigate to Voucher Creation Screen

Creating a Group with advanced usage

This section deals with the additional fields you would input during creation of Group, you will be able to configure the information to your requirements like Group behaves like sub-ledger, Nett Debit/Credit Balances for Reporting, Used for Calculation and Method to allocate when used in purchase invoice.

Go to Gateway of Tally > Accounts Info > Groups > Create under Single Group > select F12 configure (Group Configuration) and enable Allow Advanced entries in Masters under Accounts Masters.

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Creation of 'Printing' Group under Primary Group:

Advanced options:

Nature of Group

If a group (e.g Printing) is created under Primary, you must select the appropriate option from the list whether it is an asset, liability, income or expenses. If you select an income or expenses you should specify whether it will affect the gross profits or not by suitably setting the option Does it affect Gross Profits? to Yes/No. If the option is selected as Yes, the Group will appear under Trading Account and if the option is selected as No, the Group will appear under Profit & Loss Account. You can use this concept when you wish to segregate your profits into Operative Profit and Net Profit. This helps you when you want to consider other revenue accounts in addition to Direct instead of Gross and Net Profit. Normally, Tally.ERP 9 calculates Gross Profit using Opening Stock, Purchase Accounts, Direct Expenses, Sales Accounts, Direct Incomes and Closing Stock only. To make other accounts contribute to this, without classifying under these reserved heads, set this option to Yes. Group behaves like sub-ledger? This option will allow such Groups to behave as defined in the Master to act as equal to the behavior of Ledger.

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When Group behaves like sub-ledger is set to No, the same will display all the Ledgers grouped under the same in detailed mode.

When the Group behaves like sub-ledger is set to Yes, the same will not display the Ledgers grouped under the same in detailed mode.

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The same is helpful in reports when there is a large number of Ledgers under any Group. Nett Debit/Credit Balances for Reporting? Setting this option to Yes will display either the net debit or credit balance in the report (whichever is higher). If this is set to No, both debit and credit balances will be displayed in the report. Used for Calculation (e.g. taxes, discounts)? Set this option to Yes if ledgers under this group would have percentages for discounts/taxes to be used in invoice entry. This gets reflected while passing voucher entry in Invoice mode and for automatic calculations. Method to allocate when used in purchase invoice Select the appropriate allocation method from the list. This is used to allocate the expense of the Item in the ratio of the quantity or value. Buttons in Group Creation Screen with advanced usage:

Button L: Ledgers S: Cst Cat C: Cst Ctr O:Employee Groups E: Pay Heads P: Employee T: Attd Type U: Units B: Budget V: Vch Types

Shortcut Keys Ctrl+L Ctrl+S Ctrl+C Ctrl+O Ctrl+E Ctrl+P Ctrl+T Ctrl+U Ctrl+B Ctrl+V

Behaviour Navigate to Ledger Creation screen Navigate to Cost Category Creation screen Navigate to Cost Centre Creation screen Navigate to Employee Groups Creation screen Navigate to Pay Head Creation screen Navigate to Employee Creation screen Navigate screen to Attendance/Production Type Creation

Navigate Unit Creation screen Navigate to Budget Creation screen Navigate to Voucher Type Creation screen

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The default buttons available are Ledgers and Voucher Types and the rest of the options displayed based on the features enabled in F11:F1: Accounting features.
No te : F12 : Co nfi g u ra ti on ch a n g es a f f ec t a l l co m pa n i es a n d ch a n g e s ma de i n F11 :Fe a t ure s a f f ec t o n l y th e cu rr en t co mpa n y.

Creating Multiple Groups

Tally.ERP 9 allow you to create Multiple Groups simultaneously, you can create them by pressing Enter on Create under Multiple Groups. Go to Gateway of Tally > Accounts Info. > Groups > Create (under Multiple Groups)

You can create any number of Groups under an already created/selected Group. In this mode of group creation, the sub-groups will automatically inherit the characteristics of their parent groups.

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You can also create any number of Groups under different Groups by selecting All Items in field.

Under Group

Under Group
Select the parent group under which you want the new groups to be created from the List of Groups. The group selected is displayed in the Under Group field. Name of Group Enter the name of the Group. Under If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the selected Group name and the cursor skips this column. This speeds up data entry. If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter the parent group of each of them.
No te : To ch a n g e i n di vi du a l g ro u p b eh a vi o r cr ea t e d u s i n g mu l ti pl e g ro u p s, u se si n gl e g ro u p a l ter o pti o n .

Buttons in Multiple mode Group creation

Button F4: Parent L: Ledgers S: Cst Cat C: Cst Ctr O:Employee Groups P: Employee F4 Ctrl+L Ctrl+S Ctrl+C Ctrl+O Ctrl+P Behaviour The Parent Group can be changed Navigate to Ledger Creation screen Navigate to Cost Category Creation Screen Navigate to Cost Centre Creation Screen Navigate to Employee Group Creation Screen Navigate to Employee Creation Screen

Shortcut Keys

No te : Th e d ef a u l t bu tto n s a va i l a bl e a r e P a r en t a n d L ed g er a n d th e r es t o f th e o p ti o n s di spl a y e d a r e ba s ed o n th e f ea tu r es en a bl e d i n F1 1: F 1 Ac cou nti ng fe a tu re .

Displaying a Group

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You can display the Groups in Single mode or Multiple mode, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode. Single Mode: Go to Gateway of Tally > Accounts Info. > Group > Display (under Single Group)

Select the name of the Display mode.

the

Group from

the List

of

Groups.

You

cannot

make

any

changes

in

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Displaying a Single Group

Multiple Mode: Go to Gateway of Tally > Accounts Info > Group > Display (under Multiple Group)

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Displaying Multiple Groups

Select the Group from the List of Groups to display all the Groups under the selected Group or select All Items to display all Groups. The Multi Group Display screen lists Groups and the corresponding details of the Groups. Button: F4: New Parent (Ctrl+F4) - You can navigate to select any other Group in the display mode by selecting this button from the Button Bar.

Altering a Group

You can alter the Groups in Single mode or Multiple mode by selecting Alter from the menu to change any information. You can change the Name of any reserved group, but its characteristics will remain the same.

Single mode:
Go to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)

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Select the Group that you wish to alter from the List of Groups. Make the necessary changes and click Yes to save the changes.

Altering a Single Group

Multiple Mode:
Go to Gateway of Tally > Accounts Info. > Group > Alter (under Multi Groups)

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Altering Multiple Group

Select the Group for which you want to alter from the List of Groups. In Multi Group Alteration screen, make the necessary changes and click Yes to save changes.

Deleting a Group
Go to Gateway of Tally > Accounts Info > Groups > Single/Alter The Delete function is performed through the single alteration mode. You cannot delete groups from the Multiple Alteration mode. 1. 2. Select the Group to be deleted. Press Alt+D to delete.
No te : Yo u ca n n o t d el e te a gr o u p i f i t i s a r es er v ed gr o u p o r a gro u p th a t h a s su b- gro u ps o r l ed ge rs i n i t . A n e w g ro u p cr ea t e d u n d er p ri ma r y wi l l n o t b e r ef l ec te d i n r ep o rt s u n ti l yo u pa ss ma s te rs /tra n sa cti o n s f o r th a t gro u p.

Managing Groups in Multiple Companies

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Copying masters from one company to another

Master information is the same for most group companies and it is certainly beneficial to maintain same group structure and ledgers. This becomes necessary if you have a parent company with subsidiaries or branches. This ensures uniformity of reports in all companies and proper consolidation of accounts. To avoid the tedious process of re-creating masters in other companies, Tally.ERP 9 enables you to copy the groups created in one company to another in alteration mode.

Copying a single group from one company to another:

To copy the masters from one company to another, you need to select both the companies i.e., Source Company (from where the Master has to be copied) and Destination Company (To the company in which we have to copy the Master) in Gateway of Tally to switch between companies. Go to Gateway of Tally > Select Company ABC Company Go to Gateway of Tally > Select Company XYZ Company The source company should be listed first in the Gateway of Tally (ABC Company) Go to Gateway of Tally > Accounts Info. > Groups > Single Group > Alter 1. Select a particular group, for example select Southern Debtors created under Sundry Debtors. Select F3: Company Button: to switch over to the destination company (XYZ Company Accept the screen, after making alterations, if any.

2. 3.

If the parent of the group does not exist, you will not be able to accept the screen without selecting a parent in the destination company. Once you accept the screen, you are taken back to the source company list of groups. The same group now exists in the destination company.

Copying multiple groups from one company to another

1. Select ABC Company and XYZ Company from the Gateway of Tally. The source company should be listed first in Gateway of Tally (ABC Company) Go to Gateway of Tally > Accounts Info > Groups > Multiple Groups > Alter > Select a particular Group or All Items from the list Click on F3: Company button or press F3 key to switch over to the destination company Accept the screen, after making additions/alterations, if any. Once you accept the screen, you are taken back to the source company List of Groups. The same group now exists in the destination company. The above method of copying masters is possible only if the books of accounts are maintained on the same computer.

2.

3. 4. 5.

The above methods can be also used for copying other masters like ledgers, cost categories and cost centres.

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No te : Th e a l t e rn a t e m ech a n i s m f o r tra n sf e rri n g i n f o r ma ti o n b et w e en co mpa n i e s i s to u s e th e E xpo rt o f D a ta a n d Im po rt o f D a ta .

Ledgers

A Ledger is the actual account head to which you identify a transaction and must be used in all Accounting Vouchers. Without a ledger we cannot record any transactions. Ex: Purchase, payments, sales, Receipts, etc, all these accounts heads are ledger Accounts. All Ledgers have to be classified into Groups. Classification of Ledgers to the appropriate groups is very important. These Groups and Ledgers are classified to Profit & Loss or Balance Sheet. The creation and usage of Groups in Tally.ERP 9 has been explained earlier. Now you will learn how Tally.ERP 9 works with Ledgers.

Pre-defined Ledgers in Tally.ERP 9

There are two pre-defined ledgers available in Tally.ERP 9, they are:

Cash
This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of books beginning from. You can also alter the name and even delete the Ledger.

Profit and Loss Account

This Ledger is created under the Group Primary. Previous year s Profit or Loss is entered as the opening balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the Balance Sheet as opening balance of Profit and Loss account in the Liabilities side. You cannot delete this ledger, but you can modify the same.

Creating a Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers

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You can create either Single or Multiple Ledgers.

Importance of Grouping and Accounting Classifications Debtor/Creditor Classification

1. Placing individual party accounts under Sales or Purchase Accounts groups: Accounts of parties with whom your company has trade relationship must be opened under one of the following groups (or sub-groups under them) only:

y y y

Sundry Debtors Sundry Creditors Branch/Divisions

Sales and Purchase account groups are meant for revenue accounts and would be reflected in the Profit & Loss Account. If you open party accounts under these groups, you will find it difficult to pass sales or purchase voucher transactions. For example, in a sales voucher transaction entry, you must debit an account which is a sundry debtor, branch/division or even a sundry creditor (why a creditor? - it will be explained soon). Moreover, other facilities like bill-wise allocation and tracking will not be available unless the accounts belong to one of these groups. 2. Opening two accounts of the same party For convenience Tally.ERP 9 has separately classified debtors, creditors and branch/divisions. There is no operational distinction except for the purpose of keeping the accounts of a particular group together during

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displays and analysis. You can pass both sales and purchase entries for a party account placed under Sundry Debtors. We recommend that you use the classification depending on the most natural group for the party. For example, parties from whom you buy more frequently then you sell to can be placed under Sundry Creditors, as that would be the natural place for you to look for his account. Tally.ERP 9 does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account.
No t e: Yo u n e e d n o t o p en t wo a c co u n ts o f th e sa m e pa rt y - o n e u n d er Su n d r y D eb to r s a n d a n o th er u n d er Su n d ry C re di to rs .

Remember, Tally.ERP 9 restricts you from opening two identical ledger accounts. Of course, you may decide to circumvent by marking one account as A & Co - S/Dr and another A & Co - S/Cr. Doing this would allow you to have two accounts of the same party under two groups, but you would lose the advantage of analyzing his net position at one instance. We recommend that you maintain a single account to obtain best results. 3. Placing expenditure items under a Liabilities group, e.g., the expenditure item 'Rates & Taxes' under the group 'Duties and Taxes'. The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other statutory expenses should be placed under Indirect Expenses.

reating a Single Ledger

By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit and Loss Account (direct Primary Account). You need to create all other accounts heads. There are no restrictions in Ledger creation except that you cannot create another Profit & Loss A/c. Any number of Cash Accounts may be created in any other name for ex: Petty Cash. Go to Gateway of Tally > Accounts Info > Ledgers > Create

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Ledgers can be created in Normal mode or in Advance mode.

Creating Ledger in Normal Mode

The creation of a Ledger depends on the features you have selected under F11: Features of your company and F12: Configure. You can create a single ledger account with the default options enabled.

Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger > Create

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Name Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all in. Press Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names. The uniqueness check is made here itself. Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its recognition of a name. Thus, CST, C.S.T. and C. S. T. are all considered as same. Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data entry. Alias Enter an alias name if required. You can access the Ledgers using the original name or the alias name.

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Under All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is created from the List of Groups. (To create a new Group from this field press [ALT + C]). A wrong classification would affect the treatment of the Ledger account in final statements and during voucher entry. You can, alter a Ledger account to change its group classification at any time. Refer Importance of Grouping and Accounting Classifications: for more details in Grouping Opening Balance If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance would be applicable in circumstances where the Ledger is an asset or a liability and if it has a balance in the account as on the date of beginning of books in Tally.ERP 9. Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances for Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have balances. Tally.ERP 9, however, permits you to give balances even for such accounts - You may be transferring your books on to Tally.ERP 9 in the middle of the year and may not have closed them in your earlier system. Hence, you may specify whether the balance is Debit or Credit. Simply D or C would suffice.

Creating a Purchase / Sales Ledger

Purchase / Sales ledgers are required for trading, repacking or for usage in manufacturing products. Sales and Purchase account groups are meant for revenue accounts and are reflected in the Profit & Loss Account. To create a Purchase / Sales Ledger,

Go to Gateway of Tally > Accounts Info > Ledgers > Create

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Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards. Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction. . You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes. Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account. Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Creating a Expenses / Income Ledger

Expense ledgers must be created for each of the expense account separately. To create a Expenses / Income ledger,

Go to Gateway of Tally > Accounts Info > Ledgers > Create

29
Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards. Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction. . You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes. Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account. Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Creating a Party Ledger

Party Accounts should be opened under Sundry Debtors or Sundry Creditors group with whom your company is trading. Customers (Sundry Debtors) who buy goods or services for cash or on credit. Suppliers (Sundry Creditors) who supply goods and services for cash or on credit. To create a Party Ledger,

Go to Gateway of Tally > Accounts Info > Ledgers > Create The Party Ledger account screen is displayed as shown:

30

Currency of Ledger: Tally.ERP 9 allows you to maintain Ledgers in any currency and the amount is reflected in the selected currency. But it is strongly advised that you maintain the currency of the Ledger as the Base currency. Only foreign currency bank accounts are maintained in foreign currency and other ledgers are maintained in Base Currency. Nevertheless you can enter transactions in any other currency. To create/maintain ledgers in multiple currency, set Allow Multi Currencies to Yes under F11: Features. You can always create a new currency from this field by pressing Alt+C. For more information on Currencies, refer Mult-Currency. Maintain Balances Bill-by-Bill: This option is applicable when you want the balances to be maintained Bill by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is displayed as shown.

31

Date: Since you are giving the break-up of the Opening Balance, the date of the bill would naturally be prior to the accounting period. By default Tally.ERP 9 takes last date of your previous accounting period, e.g., 31 March 2008. Change it, if necessary. Name: Enter a Name to which you can later refer when adjusting the bill. You can enter the Bill number or Document number. Due date (or credit days): For the Ledgers under Sundry Debtors and Creditors, give the credit period or the date when the bill is due.
No te : D u ri n g t ra n sa c ti o n en tr y, th e r e w o u l d b e a n o th er co n c ep t- th a t o f ef f ec ti v e da t e. I f yo u o p t f o r u si ng e ffe cti ve d a te s i n st ea d o f b i l l d a te s th e du e da t e wo u l d be ca l cu l a te d a cco r di n gl y .

Amount: For the amount of the bill due, you can give particulars of all the pending bills one by one.

32
If the total amount of all your bills covers the Opening Balance, the On Account becomes NIL. You could have Bills totaling beyond the Opening Balance. In the screen shown below, there are two bills 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account. Default Credit Period: The Credit period may be given for Sundry Debtors and Sundry Creditors. The number of Credit days or period can be defined in various ways:

y y y y

Days: If there is no suffix given to the number of credit days, then it is taken as Days. For Ex: If you enter just the number 5, then it is considered as 5 Days. Weeks: If W is given as suffix to the number of credit period, then it is taken as Weeks. For Ex: If you enter 5 W, then it is taken as 5 Weeks. Months: If M is given as suffix to the number of credit period, then it is taken as Months. For Ex: If you enter 5 M, then it is taken as 5 Months. Year: If Y is given as suffix to the number of credit period, then it is taken as Year. For Ex: If you enter 5 Y, then it is taken as 5 Years.

Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc.. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards. Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction. . You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes. Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account. Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this. Statutory Information: This functionality is available only, if you have enabled at least one of the options under F11: Features> F3: Statutory & Taxation. Based on the options enabled under F3: Statutory & Taxation, the respective fields will be displayed in the Statutory Information section. Mailing Details: is applicable only for party accounts like Sundry Debtors, Creditors and Branch Divisions, Branch/Divisions, Bank & Bank OCC A/c, Loans & Advances Assets, Loans & Advances Liabilities, Secured & Unsecured Loans, etc. These are used in mailing outputs like statement of accounts. Tax Information: The Tax Information consists of the default fields PAN/IT No. and the TIN/SALES Tax No. Based on the features you enable in F11: Features> F3: Statutory & Taxation, additional fields will appear under Taxation.
Other Information: In this section information of the relationship and enterprise type of the party with whom the transaction carried out is entered

33
y
Is Related Party: If the party under creation is related to the business organisations set the option to Yes. Other wise it will be retained as No

Relationship: This option is a suboption of Is Related Party. This field will be displayed only when the option Is Related Party is set to Yes. In this field mention the relationship with the party.

Enterprise Type: In this field select the enterprise type from the Type of Enterprise as information collected from the party.
No te : O the r Inf o rm a ti on s e cti o n wi l l be di spl a ye d i n L e d g e r Ma ste r C re a ti o n s cr e en o n l y wh en th e o p ti o n U se Ot he r I nfo rm a ti on fo r L e d g e r Acc ou nt s i s s e t to Y e s i n F 12 : L e d g e r Co nfi g u ra ti on

Percentage of Calculation: This field is applicable only for Ledgers created under the Group Duties and Taxes, or for Ledgers created under any Group for which Used for Calculation is enabled in the Group Creation screen. Option Bank Reconciliation in Ledger master creation screen:

34

Effective date for Reconciliation option will appear when a ledger is created under Bank Account group. Give the date of reconciliation on which you would like to reconcile the voucher.

Creating a Duty and Taxes Ledger

Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and total liability. To create a Tax Ledger,

Go to Gateway of Tally > Accounts Info > Ledgers > Create

35

Type of Duty/Tax: This option is based on statutory compliance of company. For Indian statutory, by default, it will show the Excise and Others. Depends on features in F11: Statutory, more options will be included in the Type of Duty/Tax. Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty and perhaps, direct expenses related to purchases such as Freight Inwards. Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction. You have to set Maintain Cost Centres to Yes in F11: Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center, set this option to Yes.
Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account. Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this. Percentage of Calculation The Group Duties and Taxes is used for automatic tax calculation. You need to specify the rate of tax e.g. 5%, 10%, 12.5% etc. You can use an automatic Discount calculation facility by specifying a negative percentage in this field. On entering a percentage, a new field Method of Calculation is displayed. From the Method of Calculation, you can select appropriate options to calculate the Tax/Duty. Rounding Method

36
This is used to round off the duty value. By default rounding method will be Blank. Once you select rounding Method, rounding Limit sub option will be displayed. Here you can specify the round off limit. For Example: For Duty value 123.33 and rounding Limit is 1,

y y y

Downward rounding will show as 123 Normal rounding will show as 123 Upward rounding will show as 124

For Duty value 125.55 and rounding Limit is 1,

y y y

Downward rounding will show as 125 Normal rounding will show as 126 Upward rounding will show as 126

Creating a Current Liabilities / Assets Ledger

Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under Current Liabilities and Assets can be classified as Current assets and Fixed assets. To create Fixed Assets ledger,

Go to Gateway of Tally > Accounts Info > Ledgers > Create

37
Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict to particular accounts as you may have the need to affect inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards. Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction. . You have set Maintain Cost Centres to Yes in F11: Features: F1:Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center (Which involves this ledger) set this option to Yes. Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account. Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Creating a Ledger with Advanced Usage

The information required for creating Ledgers depends on the features selected by you under F11: Features and F12: Configure. The Ledger Creation screen will have additional fields depending on your feature settings for your company. If you set the field Allow ADVANCED entries in Masters in F12: Configure (Ledger Configuration) as Yes, you can work in Advanced. Enable the following features in F11:Features (F2:Accounting Features):

y y y y

Allow Multi-Currency Maintain Billwise Details Maintain Cost Centres Activate Interest calculation

38

Enable all the options under Accounts Masters in F12: Configure (Ledger Configuration):

Creating Multiple Ledgers

You can create multiple Ledgers at a time in this mode. This will save the time of the user. Go to Gateway of Tally > Accounts Info > ledgers > Multiple ledgers > Create

39

Under Group Select the name of the group under which you want to create the Ledgers from the List of Groups. Below this field, the other fields are arranged in a table. The cursor rests at the field Name of Ledger. The other fields in the column are: Sl.No This is auto generated. Name of Ledger Enter the name of the Ledger. Under If you select All Items in Under Group field, you have the option to select the group in this column. You can even create a new group from this field by pressing Alt+C. If you have selected any other Group in Under Group, the selected group in Under Group gets displayed here automatically and the cursor skips this column. Opening Balance This is the balance remaining when you first enter your books on Tally.ERP 9 9, i.e., the date of beginning of books. If you have opted to maintain balances bill-by-bill, you must give the bill details. (Refer Creating a Ledger- Advanced Usage for more details on this) Dr/Cr Specify whether the Opening Balance is Debit or Credit. Tally.ERP 9 follows the normal accounting principals of accounting.
No te : W h i l e cr ea ti n g L ed g er s i n mu l ti pl e mo d e, th e f i el d C o st C en t re s a r e a ppl i ca bl e, i s s et to Y es f o r R ev en u e a cco u n ts a n d No f o r No n -R e v en u e a cco u n ts b y d ef a u l t . Th e f i el d In v en to r y va l u es a r e a f f ect e d i s s e t to Ye s f o r Sa l e s a n d P u rch a se Ac co u n ts a n d N o f o r th e o th e rs by d ef a u l t.

Displaying / Altering a Ledger Account

40
Information under Display and Alter is the same. Display option does not permit any modification. Alter option permits you to alter the information. You are allowed to alter any information of the ledger master with the exception of the Closing Balance of a ledger account, if any, other than closing balance of accounts under the group Stock-in-hand. Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter Modification of Account Ledgers is possible under Single Ledgers as well as Multiple Ledgers option. However under Multiple Ledgers, all the fields are not available for alteration Deletion: You can delete the ledger if no vouchers have been created under this ledger. Go to Gateway of Tally > Accounts Info > Ledgers > Alter > Press Alt+D If you want to delete a Ledger for which Vouchers have been created, then you have to first delete all the Vouchers from that Ledger and then delete the Ledger Account. Buttons available: Buttons G: Groups E: Currency S: Cst Cat C: Cst Ctr B: Budget V: Vch Types Keys Ctrl+G Ctrl+C Ctrl+S Ctrl+C Ctrl+B Ctrl+V You can create screen Description and Usage Stock Group from the Stock Item Creation from the Stock Item from the Stock Item

Currency You can create Creation screen You can create Creation Screen You can create screen You can create Screen You can create Creation screen

Currency

Cost Category Cost Center Budget

from the Stock Item Creation from the Stock Item Creation from the Stock Item

Voucher Type

Voucher Types

By default in Tally.ERP 9, there are 18 different pre-defined Voucher types (where Payroll feature is enabled, the number of pre-defined voucher types will be 20). Voucher type pertains to Accounting, Inventory and Payroll. These are used for recording various transactions according to the user needs. Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales transactions e.g. Credit Sales, Cash Sales, etc. If a voucher type is created, you can:

Have the different Voucher numbering methods.

41
y y y y y y
Give own prefix and suffix details for the voucher numbering. Use the Effective Dates for the vouchers. By default, make some vouchers optional if required. Decide to have the Common Narration or Narration for each entry. Automate the printing immediately after saving the vouchers. Get separate reports for each type of voucher.

Pre-defined Voucher Types in Tally.ERP 9

Go to Gateway of Tally > Display > List of Accounts > Ctrl+V [Voucher Types]

Or Go to Gateway of Tally > Accounts info / Inventory Info > Voucher types > Alter

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Alter a predefined voucher type

Even if you do not need extra voucher types, you would normally alter the predefined voucher types to customise them according to your needs, e.g., to control their numbers. Go to Gateway of Tally > Accounts info / Inventory Info > Voucher types > Alter

43

Creating a Voucher Type

Tally.ERP 9 acknowledges the special requirements of some users for more voucher types. These arise in cases where the user needs the same voucher but in different names or separate series of numbers. To create a Voucher Type,

Go to Gateway of Tally > Accounts Info/ Inventory Info > Voucher Type > Create

The Voucher Type creation screen is divided into three sections depending on various settings.

44
y y y
General Printing Voucher Class

Name Give the name of the new voucher type, e.g., Sales Invoice. Alias Give the alias, if required.

General

Type of Voucher The type of voucher should be any one of the predefined voucher types (already listed). The new voucher type would inherit the properties of this predefined voucher type. It would function exactly like the predefined voucher. Abbr (Abbreviation) An abbreviation is required particularly for unformatted reports, which do not use compressing techniques. (Tally.ERP 9 allows printing of both formatted and unformatted reports). Even if the Abbreviation is not specified, Tally.ERP 9 automatically sets a default name for the Voucher. In this example, Sale is the abbreviation. Though there is no restriction on the length of the abbreviation, it should preferably consist of five characters or less.

45
Method of Voucher Numbering This is, perhaps, one reason for your opting for a new voucher type. There are three methods available:

Automatic This method is flexible. If Automatic method is selected, then Tally.ERP 9 numbers the vouchers automatically. Manual This method allows you to number the vouchers manually. It does not check for the sequence of the numbers and permits you to specify anything that you wish in the voucher number field. However, you may choose to prevent entry of duplicate numbers. If you would like to do so, then set Prevent Duplicates to Yes.

1.

Prevention of Duplicates is possible if you enable the option at the time of creation. You may enable it later (by alteration) only if there are no transactions of this voucher type. If you face difficulty due to existing transactions, just create another voucher type for preventing duplicates of subsequent voucher numbers.

2.

None This will disable numbering of such vouchers. If you select this method, no further information is required. Use Advance Configuration If the Method of Voucher Numbering is set to Automatic, then an additional field to set the advanced configuration for the Voucher type is displayed. Setting this field to Yes, Voucher Type Creation (Secondary) screen is displayed. Refer to Use Advance Configuration for more details.

46

A further discussion on these options is necessary. Use EFFECTIVE dates for vouchers? Select Yes if you want to enter effective dates for vouchers. You would opt for this if you have instances where a transaction under consideration for overdue/ageing analysis is recorded currently but will come into effect from another date. If the effective date is entered, the overdue/ageing will be considered from the effective date and not from voucher date. Make Optional as Default Setting this option to Yes, will set your Voucher to Optional Voucher by default. Refer to Optional Vouchers for further details.
No te : F o r Me m o ra nd u m a n d Re ve rsi ng Jo ur na l vo u ch er th e o p ti o n Ma k e Op ti ona l a s D e fa ul t wi l l n o t b e sh o wn .

Use common narration? Select Yes to give a common narration for the entire voucher. Tally.ERP 9 vouchers can have multiple entries. Hence, you may wish to give a common narration for all the entries of the voucher. Select No, if you do not want a common narration.

47
Example of common narration in a voucher:

Narrations for each entry Select Yes, if you want to give a separate narration for each entry of a voucher. This would be applicable for a multiple entry voucher where you want separate details for each entry. Select No if you do not want a separate narration for each entry.

48

No te : To g e t th e Na r ra ti o n f or e a c h e nt ry ra i s e th e sa l es i n A s V o uc he r a n d f o r P a ym e nt o r Re ce i p t v o u ch ers , s e t U se Si ng l e En try m od e f or P ym t /R cp t / Con tra to No i n F 12 :C on fi g u ra ti o ns .

For Delivery Note, Receipt Note, Sales order, Purchase order, Physical Stock, Stock Journal, Rejection In and Rejection Out, the option Narration for each entry is deactivated.

Printing
Print after saving voucher? Select Yes to print every voucher after entering it, else select No. This is suitable for an online environment where you use Tally.ERP 9 printed vouchers as the formal voucher. Remember, that the transaction is already recorded and posted and should you wish to make corrections to the printed voucher, you must alter the Tally.ERP 9 voucher online and print it again.
No te : I f w e sel ec t R e cei pt a s T yp e of V ou che r th e o pti o n P ri nt F o rm a l Re ce i p t a f te r sa vi ng wi l l b e di s pl a y e d. D e pen di n g o n th e Ty p e o f V o u ch er yo u h a ve s el e ct ed to c r ea t e o r a l ter , di f f e ren t p ri n ti n g f ea tu re s a p p ea r i n th i s fi el d .

Use for POS Invoicing If you would like to use the sales invoice as POS invoice then set this option to Yes.

49
Default Print Title If you would like to give the default print title for POS Invoice then specify the same. So when ever you print the POS Invoice this title will be printed.
No te : D ef a u l t p ri n t Ti tl e o pti o n wi l l a pp ea r o n l y i n Sa l es V o u ch e r T y pe .

Voucher Class
Name of Class You can create classes by entering the class name in this section. A detailed discussion on Voucher class creation is covered in Voucher Class. Stock Journal Voucher Type The option Use Manufacturing Journal will be enabled for Stock Journal Voucher type

Creating a Voucher Type with Advanced Configuration

If the Method of Voucher Numbering is set to Automatic, then an additional field to set the advanced configuration for the Voucher type is displayed. On setting this field to Yes, the Advanced Voucher Type Configurationscreen is displayed.

The Voucher Type Alteration will appear as shown :

50

Starting number Give the number for the first voucher. Usually it is 1. You can set it to any number you want. Tally.ERP 9 will auto-increment from this number for subsequent vouchers. However, the numbering of vouchers also depends on other variables selected by you, explanations of which will follow hereafter. Width of Numerical Part You may leave it blank to let Tally.ERP 9 automatically adjust the width according to the number. However, if you would like to have a specific width to be fixed then set the same. e.g., 3. Prefill with ZERO? When the width is specified, the digits before the voucher number are left blank if this option is set to No . E.g. Sales Invoice No: 1 If this option is set Yes, it pre-fills the space with zeroes based on the width of numerical part specified. E.g. If the Width of Numerical Part is specified as 3, and if Pre-fill with Zero is set to Yes, then it display the voucher number as below: Sales Invoice No: 001 If Width of Numerical Part is specified as 4, then it displays the voucher number as below: Sales Invoice No: 0001 and so on.

51
Restart Numbering

Voucher Numbering may be restarted with the starting number (as specified) at intervals selected by you - Daily, Monthly, Never, Weekly or Yearly. You must give the date when the numbering should restart in the fieldApplicable from. The date must be the first day of the month. You can specify more than one Restart dates. For example, should you wish to renumber your vouchers from 01 June 08 on a yearly basis, you must specify it in the next field. This would retain the numbering system in the prior period. If, however, you want to change the numbers from the beginning from monthly to yearly basis, simply alter the first field itself. Prefix Details If you want the voucher numbers to be prefixed with some fixed information, enter the information here. Examples of prefix details are: 1. 2. 3. month of the voucher - April/ company info like ABC/ even fixed number series like 1000
No te : Th e n um e ri c p o rti on be gi n s i m m edi a t el y a f te r th e p re fi x i n f o r ma ti o n . Th e r ef o r e , b e su re to gi v e a s pa c e o r a sl a sh '/ ' o r so me sp e ci a l ch a ra ct er to h i gh l i gh t a s epa ra ti on , e. g . we h a v e s p eci f i e d A pri l / . Th e sl a sh wo u l d ca u s e th e v o u ch er n u mb e r to a p pea r a s Ap ri l /0 0 1 , o th e rwi s e i t wo u l d a p pea r a s Ap ri l 0 0 1 . Th i s f a ci l i ta te s si mpl e u sa ge f o r f i xe d n u m b er se ri e s a pp ea ri n g a s 2 0 0 1 0 0 0 0 1 wh e re 2 0 0 1 i s th e pr ef i x , a n d 0 0 0 0 1 i s th e sta r ti n g n u m b er wi th a wi dth o f 5 , a n d wi th l ea di n g z e ro s .

You can choose different prefix information for different periods or continue with one. The prefix continues from the date you mention under Applicable from till the next date that you may give under Applicable from. Hence, we have chosen to change the prefix from April to May when the month changes. Please note, however, that if we omit to change the prefix for the subsequent months (i.e. do not give Applicable from date for the month), your voucher numbers for even June, July etc would contain the prefix 'May/'. Suffix Details You can also give fixed suffix information for the voucher number. The same rules and effects as for Prefix Details are applied. The Sales Invoice voucher number looks like this:

52

Voucher Class

Voucher Classes are used to automate Accounting Allocations in transactions. It is a table for predefining the entries to make Invoice entry a simple task. This is particularly useful in sales invoicing where the nominal ledger accounts, to be credited for each item of sale is defined once. During voucher entry, the accounting credits for items sold are done automatically. Additional accounting entries like, tax, freight, and other charges can be predefined to be carried out untouched during actual invoicing. Voucher Classes are available for all major voucher types like: 1. 2. 3. 4. 5. 6. 7. 8. 9. Contra Payment Receipt Journal Sales Credit Note Purchases Debit Note Sales Order

10. Purchase Order 11. Delivery Note 12. Stock Journal

Creating a Purchase Voucher Class

Purchase Voucher Classes are templates where you can restrict accounts to be used in entries as well as automate accounting entries for items and expenses. You can either alter the existing Purchase Voucher Type or create a new voucher type based on the requirements.

53
Go to Gateway of Tally > Accounts Info > Voucher Type >Alter > Purchase Give a name to the class under Name of Class say Purchase Class. You can create more than one class. (Make sure that Enter Purchases in Invoice Format in F11 feature is enabled to create class). Create the class as follows:

Default Accounting Allocations All the stock items that will be entered in the voucher using this class will be automatically allocated to this Ledger account Local Purchases. Of course, the stock item record remains as it is and can be viewed separately. Pass a Purchase entry using the created Purchase Class: Go to Gateway of Tally > Accounting Vouchers > F9 Purchase > and select the Class.

1.

Select the Supplier Account.

54

You will observe that the Ledger Accounts grouped under Sundry Debtors are also listed as you have not specified any condition to exclude Sundry Debtors Group. If you have specified Sundry Debtors under Exclude option, then Tally would have displayed the Ledgers excluding those Ledgers grouped under Sundry Debtors. Please note that the Freight Ledger is automatically displayed and the user has to only specify the value.

Once you select Item B, specify the Quantity and rate, the value will be automatically calculated and the cursor will directly move to the Name of Item field instead of popping up the Accounting Allocations for screen.

Creating a Sales Voucher Class (Inclusive of Tax)

55
This is used when the Tax amount is included in the Sales value and the same is illustrated with an example. You can either alter the existing Sales Voucher Type or create a new voucher type based on their requirements. Go to Gateway > Accounts Info > Voucher Types > Alter > Sales Give a name to the class under Name of Class say Sales Class B. You can create more than one class. Specify the table of class as below:

Now pass Sales Invoice and check, Go to Gateway of Tally >Accounting Vouchers > select Sales Class BF8 Sales

56

The total value of the sale is Rs. 1500/=. Select the entry in alteration mode, move the cursor till the amount field and check.

The total value is allocated to Sales and Tax Ledgers, as defined in the voucher class.

57

Creating a Sales Voucher Class with Override using Item default

You can either alter the existing Sales Voucher Type or create a new voucher type based on their requirements. Go to Gateway > Accounts Info > Voucher Types > Alter > Sales Give a name to the class under Name of Class say Sales Class A. You can create more than one class. Specify the table of class as shown:

Override using Item Default: Item default refers to the Default Ledger account that you had set for a Stock Item. It is possible to enter a Tax Invoice having multiple items with different VAT/Tax Rates. Item default refers to the Sales Ledger account that you may have set for a stock item. If you set Override using Item default to Yes and specify a Sales Ledger in the Class Table, the sales Ledgers set in the item masters will still be considered. Create Stock Item say Item D and Item E and set Yes to option Set/Modify Default Ledgers for Invoicing and specify as below: (To display this option, enable Specify Default Ledger Allocation for Invoicing in F12 configure). Item D:

58

Item E:

Now pass the Sales entry and check: Go to Gateway of Tally >Accounting Vouchers > F8 Sales > select Sales Class A

59

The VAT Ledgers are selected automatically. Select Party s name and select Item D and Item E and check.

The Items will be automatically allocated to the Ledgers defined in Item Master and VAT calculation automates and facilitates the user to pass the entries faster and with ease.

Voucher Classes for Payment, Receipt and Contra Vouchers

60
Voucher Classes for Payment, Receipt and Contra Vouchers The primary intention of using classes for payment, receipt and contra vouchers is to enable data input in single entry or list mode rather than in Tally's traditional double entry mode. Let us take an example of a Payment Voucher. You can either alter the existing Payment Voucher Type or create a new voucher type based on your requirements. Go to Gateway of Tally > Accounts Info > Voucher Types > alter Payment Take the cursor to the Name of Class field. Give a name to the class say Cash Payment. You can create more than one class. The Class Table

Exclude these Groups and Include these Groups Using this option, you can select only those groups pertaining to the Class, which makes the entry simpler. Ledger Name Selecting the ledger account that will be used to pay out the money will eliminate the need to select it during entry. In this case, it is Cash Account. While passing the payment voucher, the Cash-Location B account will be automatically selected. You may even select 'Not Applicable'. The purpose of selecting 'Not Applicable' will be, to permit Single Entry mode and at the same time retaining the option of selecting the account during entry.

61
No te : Ex cl ud e o r In cl ud e G ro u p s a r e i r rel e va n t wh e n yo u s pe ci f y a L ed g er Nam e f o r wh i ch th e cl a ss i s cr ea t e d. Th e y a r e u s ef u l wh en yo u s el ect No t Ap p l i ca b l e .

Voucher Class for Journals

Voucher Classes in Journals is used to handle Forex Gain Loss Adjustments for companies having MultiCurrency Accounts. You would create a 'class' in the normal way (Accounts Info > Voucher Types > Alter > Journal). Having selected the class during Voucher Entry, you will find only those Ledger Accounts appearing which have a Gain/Loss to be adjusted as of the date of voucher and auto-calculation of these amounts.

Voucher Class for Debit Notes and Credit Notes

Voucher classes for Credit Notes are similar to sales invoices except for one important inclusion. You can set the class for interest entries to enable adjustment of interest payable. If the Interest option is selected, the other sales invoice-like options will not be available. A separate class may to be created for entries like Sales Returns. Since Sales and Purchase Invoice classes have already been dealt with, we shall not elaborate on this behavior anymore. Debit Note classes can be set for interest entries only. Classes for other entries are not available as the invoice mode of entry is not possible for Debit Notes.

Creating a Payment Voucher Entry with Class

Select Accounting voucher from Gateway of Tally. Press F5: Payment. You have to select a class or Not Applicable, if no class is desired for this entry. If Cost Centre Class has been set, it can also be selected.

The entry will be made as follows:

62

The Voucher Class is Cash Payment. Once the voucher class is selected, the Cash Ledger is automatically selected and you need to select only the Ledgers which are to be debited. Please note that the entry is not done in the regular Dr/Cr format. Data entry in Tally.ERP 9 is very rapid. This feature makes it much more faster!

Cost Centre Class

The purpose of Cost Centre Classes is to facilitate predetermined allocation of cost centres to Ledger accounts (like expenses and incomes) during voucher entry. How does it work? The Automation of cost centre allocation involves creation of classes and predefining percentages for cost centres. Cost centre classes affect all voucher types. In voucher entry, depending upon the cost centre class, the allocation will be carried out in the background without the allocation screen being displayed at all. More:

y y y

Set up required for Cost Centre Classes Voucher Entry with Cost Classes An explanation of Types of Calculation

Set up Required for Cost Centre Class

63

Before you select classes, it is advisable to create the cost centre structure. Define the Classes required and indicate which cost centres will be affected for each class. For example, you might have the following structure: Divisions 1. 2. 3. Export Wholesale Retail

Departments 1. 2. Finance Marketing

Where Divisions and Departments are Cost Categories and the others are cost centres. Now, you would like to allocate sales to the following Cost Centre Classes: 1. 2. 3. Export Class - to allocate 100% of Export sales to the cost centre Export Wholesale Class - to allocate 100% of wholesale sales to the cost centre Wholesale Retail Class - to allocate 100% of retail sales to the cost centre Retail

You would also like to allocate all the sales (Export, Wholesale and Retail) to the Marketing Department. Along with the above mentioned, you would also like to allocate Marketing Expenses on a pro-rata in the following manner: 1. 2. Finance Marketing 50% 50%

With this structure, let us now set up the classes. Set up Cost Centre Classes Go to Gateway of Tally > select F11: F1: Accounting Features Set Use Pre-defined Cost Centre Allocations during Entry to Yes

64

(The other options can remain as previously set and are not discussed here.) Click on Enter, which will pop up Auto Cost Allocations-Cost Centre Classes creation screen. Type the Class name and select the Categories and the respective cost centres. Specify the percentage of allocation. After entry, your auto-cost allocation screen will be displayed as shown:

You have created the Cost Centre Classes as Export, Wholesale, Retail and Marketing Expenses. Divisions and Departments are cost categories. Export, Wholesale and Retail are cost centres under Divisions. Marketing and Finance are cost centres under Departments. It is not necessary to have the same names for the classes and the cost centres, as shown in the above example.

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Inventory Information

Inventory Information The Inventory Info menu, lists the inventory masters like Stock Group, Stock Items, Units of Measure of the company, using which you can create, alter and display the inventory master details. Go to Gateway of Tally > Inventory Info

No te : Th e In v en to ry In f o m en u i s di s pl a y ed i n th e Ga te wa y o f Ta l l y , i f yo u sel ec t T yp e o f co m pa n y a s Ma i n ta i n A cc ou nt s wi t h Inve nt or y i n t h e C o m pa n y C r ea ti o n sc r een .

Inventory Configurations & Features (F11 & F12)

Configuration of Inventory By using F12:Configure, you can enable the required settings of Inventory Masters. By default, the settings pertaining to Inventory Masters are set to No. If you set them to Yes, the features will be enabled. Typically, they are additional fields that appear during Masters creation which enable you to obtain more information and detailed analyses. Refer Accts/Inv Info. Configuration for more details.

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No te : I f yo u pr e ss F12 a n ywh e re i n th e Men u , i t wi l l ta k e yo u to th e co nfi g u ra ti on men u .

Features of Inventory
By using F11:Features, you can enable the various settings under inventory features which determine the information to be entered during transaction entries.

Functions in Inventory Info. Menu

Inventory information contains has Create, Display and Alter functions. These three functions are grouped under: 1. 2. Single Multiple

the

inventory

masters.

Each

master

In Single, you can execute the function on one master. In Multiple, you can execute the function on multiple masters.

Functions
Create The Create option is used to create new masters. Any modification to the masters can be done only through the Alter mode. Display The Display option is used to view the Master information. Master information cannot be modified in Display mode. Alter The Alter option allows you to view and make the necessary changes to the master information. This does not allow creation of masters. In Alteration mode, you can delete the master. [Press ALT+D for deletion]

Stock Group

Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the classification of Stock Items.

67
You can group Stock Items under different Stock Groups to reflect their classification based on some common features such as brand name, product type, quality, etc. Grouping enables you to locate Stock Items easily and report their details in statements. Example: Stock Item Brand A - 19 Brand A - 17 Brand B - 19 Brand B - 17 TFT CRT TFT CRT Sub Group Brand A Brand A Brand B Brand B Main Group Grade One Grade One Grade Two Grade Two

You now have ready details of Grade One and Grade Two products, duly classified. You can also view the sub group classification. Go to Gateway of Tally > Inventory Info. > Stock Groups

Creating a Stock Group

Stock Items are classified into stock groups to reflect their classification based on some community. To create a Stock Group,

Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group)

68

A brief description on each of the fields in the Stock Group Creation screen follows:

Name Enter the name of the Stock Group to be created. For example, Grade One. Alias Enter additional name apart from primary name [if required]. You can create any number of additional names. Under Specify whether it is a primary group or a sub-group of another group, by selecting from the list. Press Alt+C to create a parent group, if you do not have it in the list. Can quantities of items be ADDED? This field pertains to information on measuring the units of the Stock Items that you would categorise under the Stock Group. The Stock Items categorised under the group should have similar units for them to be added up. You cannot add quantities in Kgs to quantities in Pcs.
No te : Yo u ca n a l wa ys go ba c k a n d re se t th i s o p ti o n a f te r a ss e ssi n g th e u n i t s o f th e i te ms i n th e gro u p.

Buttons specific to stock group creation: Buttons C: Category I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+C CTRL+I CTRL+U CTRL+O CTRL+V Description & Use Allows you to Create a Stock Category. Allows you to Create a Stock Item. Allows you to Create a Unit of Measure. Allows you to Create a Godown Allows you to Create a Voucher Types

69

No te : Ca te g or y a n d God o wn bu t to n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F11: Fe a tu re s .

Creating Multiple Stock Groups

Tally.ERP 9 allows you to create Stock Groups using single or multiple options. To create Multiple Stock Groups,

Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)

Select the parent group under which you want the new groups to be created from the

List of Groups

A brief description on each field in the Multi Stock Group Creation screen is given below: Name of Stock Group Enter the name of the Stock Group. Under If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter the parent group for each one of them. Items are Addable? (Y/N) You can select whether units of the Stock Items under Stock Group are to be added or not. Buttons specific to Multi Stock Group Creation screen

70

Buttons F4: Parent F8: Skip Details

Short cut keys CTRL+F4 F8

Description & Use Allows you to change the parent for all sub groups. Cursor will not go to Column Items are Addable (Y/N). If Items are addable is to remain the same as specified for further subgroup creation, use this button. The cursor skips the column which speeds up data entry. Allows you to Create a Multi Stock Category. Allows you to Create a Multi Stock Item. Allows you to Create a Multi Godown

C: Category I: Items O: Godown

CTRL+C CTRL+I CTRL+O

Displaying a Stock Group

You can display the existing Stock Group in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode.

Displaying Single Stock Group

Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single Stock Group) Select the Stock Group whose particulars you want to display from the List of Groups. The Stock Group Display screen is displayed as shown.

Buttons specific to stock group Display mode: Buttons C: Category I: Items U: Units O: Godown V: Vch Types Short cut Keys CTRL+C CTRL+I CTRL+U CTRL+O CTRL+V Description & Use Allows you to Display a Stock Category. Allows you to Display a Stock Item. Allows you to Display a Unit of Measure. Allows you to Display a Godown. Allows you to Display a Voucher Types

71
No te : Ca te g or y a n d God o wn bu t to n s a r e vi si bl e o n l y i f yo u o p t ed f o r th e sa m e i n F1 1: Fe a tu re s .

Displaying Multiple Stock Groups

Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple Stock Groups) Select the Stock Group from the List of Groups.

If you select All Items from the List of Groups, all the Groups and sub Groups are displayed.

If you select Grade One from List of Groups, all the sub Groups related to Grade One will be displayed.

Buttons specific to Multi stock group Display mode: Buttons F4: Parent Shortcut Keys CTRL+F4 Description & Use Allows you to select parent [Stock Group] from List of Group. Selected Stock Group will get displayed.

72
C:Category I: Items O: Godown CTRL+C CTRL+I CTRL+O Allows you to select Category from List of Categories. Selected Stock Category will get displayed. Allows you to select Stock Group from List of Groups. Selected Stock Group will display related stock items. Allows you to select Godowns from List of Godowns. Select Godowns will get displayed.

No te : Ca te g or y a n d G od o wn bu t to n s a re vi si bl e o n l y i f yo u h a ve o p te d f o r th e sa m e i n F11 : Fe a tu re s.

Altering a Stock Group

This option allows you to view the existing Stock Group in edit mode, here you are allowed to change the various information. To alter a Stock Group,

Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Single Stock Group) Select the Stock Group from the List of Groups. The Stock Group Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or press Ctrl+A to Save. Deletion is possible only in the mode,. For deleting the Stock Group, Press ALT+D.
No te : Yo u ca n n o t d e l e te a st ock g ro up , i f i t i s u s ed by a n y su b g ro u p s o r st o c k i t ems . In o rd er to del et e th e Sto ck Gro u p, f i rs t d el e t e th e r el ev a n t su b gro u ps a n d S to c k i t em s.

Buttons specific to stock group Alter mode: Buttons C: Category I: Items Short cut Keys CTRL+C CTRL+I Description and Keys Allows you to Alter a Stock Category. Allows you to Alter a Stock Item.

73
U: Units O: Godown V: Vch Types CTRL+U CTRL+O CTRL+V Allows you to Alter a Unit of Measure. Allows you to Alter a Godown. Allows you to Alter a Voucher Types

No te : Ca te g or y a n d God o wn bu t to n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F11: Fe a tu re s .

Altering Multiple Stock Groups

Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Multiple Stock Groups) Select the Stock Group from the List of Groups. The Multi Stock Group Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or Press CTRL+A to save.
No te : Yo u ca n n o t d el e te a St ock Gr oup f ro m mu l ti pl e mo d e.

Buttons specific to Multi stock group Alter mode: Buttons F4: Parent F4: Parent F6: Skip Names Short cut Keys F4 CTRL+F4 F6 Description and Use Allows you to select Stock Group from Under Group Field for changing the parent of sub groups. Allows you to select parent [Stock Group] from List of Group. You can alter the sub groups of selected Stock Group. Cursor will not go to Column Name of Stock Group. If you want to alter only the details of Under Column and Items are addable then you can skip names. Cursor will not go to column Under. If you do not want to alter parent then you can skip parent. Cursor will not go to column Items are addable. If you do not want to alter Items are addable then you can skip details. Allows you to Alter a selected stock Category in Multi-stock category screen. Allows you to Alter a selected Item in Multi Stock Item screen. Allows you to Alter a selected Godown in Multi Godown screen.

F7: Skip Parent F8: Skip Details C: Category I: Items O: Godown

F7 F8 CTRL+C CTRL+I CTRL+O

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No te : Ca te g or y a n d God o wn bu t to n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F11 : Fe a tu re s.

Stock Categories

Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in behaviour. For example, Stock Item Brand A - 19 Brand A - 17 Brand B - 19 Brand B - 17 TFT CRT TFT CRT Sub Group Brand A Brand A Brand B Brand B Main Group Grade One Grade One Grade Two Grade Two SubCategory
TFT

Main Category Monitor Monitor Monitor Monitor

CRT TFT CRT

The advantage of Categorizing items is that you can classify the stock items (based on functionality) together across different stock groups which enables you to obtain reports on alternatives or substitutes for a stock item. You now have the details of TFT and CRT products, duly classified. You can also view the Monitor classification. For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features > Set Yes for Maintain Stock Categories. Go to Gateway of Tally > Inventory Info. > Stock Category

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Creating a Stock Category

This option allows parallel classification of stock items. Like Stock Groups, Stock Categories are also classified based on some similar behaviour. This enables you to obtain reports for alternatives or substitutes of a stock item. To create a Stock Categories,

Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Single Stock Category) The Stock Category Creation screen is displayed as shown.

A brief description of each field in the Stock Category Creation screen is given below: Name Enter the name of the Stock Category. Under Specify whether it is a primary category or a sub-category of another category. Select Primary from the list, if you do not have a parent group. Use ALT + C to create a parent if you do not have the required category in the list. Buttons specific to stock category creation: Buttons G: Groups I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+G CTRL+I CTRL+U CTRL+O CTRL+V Description and Use Allows you to Create a Stock Group. Allows you to Create a Stock Item. Allows you Measure. to Create a Unit of

Allows you to Create a Godown Allows you to Create a Voucher Types

No te : G od o w n bu tto n s a r e vi si bl e o n l y i f yo u h a ve o pt ed f o r th e sa m e i n F 11 : Fe a tu re s.

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Creating Multiple Stock Categories

Tally.ERP 9 allows you to create Stock Categories using single or multiple options. To create Multiple Stock Categories,

Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Multiple Stock Category) The Multiple Stock Category Creation screen is displayed as shown.

A brief description of each field in the Multi Stock Category Creation screen is given below: Under Category: This field will display the List of Categories. You can select a category for which a multiple sub-category can be created. If you select All Items in List of categories, selection of parent category Under column is possible during creation of sub-category. If you select specific category in List of Categories, that category will get populated automatically whenever creation of sub-category and cursor skips Under column. Name of the category Specify the name of the Stock Category. Under If you have select All Items in Under Category, you must specify a parent category in this column. Buttons specific to Multi Stock Category screen: Buttons F4: Parent G: Groups I: Items Short Cut Keys F4 CTRL+G CTRL+I Description and Use Allows you to change the parent for all Categories. Allows you to Create a Multi Stock Group. Allows you to Create a Multi Stock Item.

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O: Godown CTRL+O Allows you to Create a Multi Godown

Displaying a Stock Category

You can display the existing Stock Category in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode.

Displaying a Single Stock Category

Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Single Stock Category) Select the Category for which you want to view the display details from the List of Categories. The Stock Category Display screen shows the details entered in Stock Category Master.

Buttons specific to stock Category Display mode: Buttons G: Group I: Item U: Units O: Godown V: Vch Types Short Cut Keys CTRL+G CTRL+I CTRL+U CTRL+O CTRL+V Description and Use Allows you to Display a Stock Group. Allows you to Display a Stock Item. Allows you to Display a Unit of Measure. Allows you to Display a Godown. Allows you to Display a Voucher Types

No te : God o wn bu tto n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F 11 : Fe a tu re s.

Displaying Multiple Stock Categories

Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Multiple Stock Categories)

78
Select the Stock Category from the List of Categories.

If you select All Items from the List of Groups, all the categories and sub categories are displayed.

If you select Monitor from the List of Categories, all the sub categories related to Monitor will be displayed.

Buttons specific to stock group Display mode: Buttons F4: Parent G: Groups I: Items O: Godown Short Cut Keys CTRL+F4 CTRL+G CTRL+I CTRL+O Description and Use Allows you to Display a Stock Group. Allows you to Display a Stock Item. Allows you to Display a Unit of Measure. Allows you to Display a Godown.

No te : Bu t to n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r t h e sa me i n F11 : Fe a t ure s.

Altering a Stock Category

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This option allows you to view the existing Stock Category in edit mode, here you are allowed to change the various information. To alter a Stock Category, Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Single Stock Category) Select the Stock Category from the List of Categories. The Stock Category Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or press CTRL+A to Save. Deletion is possible only in the alteration mode,. For deleting the Stock Category, Press ALT+D.
No te : Yo u ca n n o t del et e a sto ck C a te go r y , i f i t i s u s e d b y a n y su b C a t ego ry o r sto ck i t e ms . In o rd er to del et e th e Sto ck C a te go ry , f i rs t del et e th e re l eva n t su b C a te go ry a n d S to c k i t em s.

Buttons specific to stock group Alter mode: Buttons G: Groups I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+G CTRL+I CTRL+U CTRL+O CTRL+V Description and Use Allows you to Alter a Stock Group. Allows you to Alter a Stock Item. Allows you to Alter a Unit of Measure. Allows you to Alter a Godown. Allows you to Alter a Voucher Types

No te : God o wn bu tto n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F1 1: Fe a tu re s .

Altering Multiple Stock Categories

To alter Multiple Stock Categories,

80
Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Multiple Stock Categories) Select the Stock Category from the List of Stock Categories. The Multi Stock Group Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or Press CTRL+A to save.
No te : Yo u ca n n o t d el e te a Sto ck C a t ego ry i n mu l ti pl e mo d e.

Buttons specific to Multi stock Category Alter mode: Buttons Short Cut Keys F4 CTRL+F4 F6 F7 CTRL+G CTRL+I CTRL+O Description and Use

F4:Parent F4: Parent F6: Skip Names F7: Skip Parent G: Groups I: Items O: Godown

Allows you select Stock Category from Under Category Field for changing the parent of sub Category. Allows you to select parent [Stock Category] from List of Category. You can able to alter the sub Category of selected Stock Category. Cursor will not go to Column Name of Stock Category. If you want to alter only the details of Under Column then you can skip names. Cursor will not go to column Under. If you do not want to alter parent then you can skip parent. Allows you to Alter a selected stock Group in Multi-stock Group screen. Allows you to Alter a selected Item in Multi Stock Item screen. Allows you to Alter a selected Godown in Multi Godown screen.

No te : God o wn bu tto n s a r e vi si bl e o n l y i f yo u h a v e o pt ed f o r th e sa m e i n F1 1: Fe a tu re s .

Stock Items

Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and is the lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP 9 for each inventory item that you want to account for. Go to Gateway of Tally > Inventory Info. > Stock Items

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Creating a Stock Item

Stock items are goods that you manufacture or trade (sell and purchase). It is the primary inventory entity. Stock Items in the Inventory transactions are similar to ledgers being used in accounting transactions.

Two Modes of Stock Item Creation: 1. 2. Normal Mode Advance Configuration Mode.

Creation of Stock item in Normal Mode:

To create a Stock Item, Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under Single Stock Item) Stock Item creation is displayed as shown:

82

A brief description of each field in the Stock Item Creation screen follows: Name Specify the name of the Stock Item. Alias Specify the Alias name of Stock Item (if required). Under This field will show the List of Groups. Here you can select the Stock Group to which the Stock Item belongs. By default, Primary Stock Group appears in this field.
No te : Yo u ca n cr ea t e a n e w s to c k G ro u p b y p re ssi n g AL T+ C a t th i s f i el d.

Units This field will show the Unit List. Here you can select the Unit of measurement applicable for the stock item. By default, Not Applicable appears in this field.
No te : Yo u ca n c r ea t e a n e w U n i t by p re ssi n g AL T + C a t th i s f i el d.

Rate of duty

83
Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of excise duty or if duty is based on item rate. During Invoicing, whenever you select a Stock Item, the Rate of duty entered here is displayed in the Invoice creation screen.
Note : In F 1 1 In v en to ry f ea tu r es , i f Al l o w In voi ci ng i s se t t o No th en R a te o f D u t y f i el d wi l l n o t b e vi si bl e .

Tariff Classification Specify the Tariff Classification for the item, if applicable. This field will appear only when you specify a value in the Rate of Duty field. Opening Balance Specify the details of Opening Stock, if any, for the Stock Item as on the date of Beginning of Books. 1. 2. 3. In the Quantity Field, specify the stock item Quantity, say 5 Nos. In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece. In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field accordingly.
No te : If Uni t f i el d i s N ot Ap p l i ca b l e th en th e cu r so r wi l l mo v e f ro m Qua nti t y a n d Ra te F i el d .

Buttons specific to Single Stock item creation: Buttons G: Groups I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+G CTRL+I CTRL+U CTRL+O CTRL+V Description and Use Allows you to Create a Stock Group. Allows you to Create a Stock Item. Allows you to Create a Unit of Measure. Allows you to Create a Godown. Allows you to Create a Voucher Types

No te : Ca te g or y a n d God o wn bu t to n s a r e vi si bl e o n l y i f yo u o p t ed f o r th e sa m e i n F1 1: Fe a tu re s .

Creating a Stock item in Advance Mode

Advance mode means enabling advance in F12:Configure and F11:Features.

configuration

and

Features

for

stock

item

master

84
Shown below are the advance configuration parameters (Master Configuration) : for stock item master under F12:Configure

Shown below are the advance Features for stock items in F11:Features:

No te : Yo u ca n co n f i gu r e th e en ti r e se tu p a cco rdi n g to you r re qu i r em en t s. Ac co r di n g to th e co nfi g u ra ti on i n F1 2 a n d F1 1, sto c k i t e m ma st er f i el ds wi l l g et a dd e d a n d re mo ve d.

Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)

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A brief description of each additional field in Stock Item Creation screen is given below. Part No. This Part number field gets enabled only after enabling Use Part Number for stock items in Inventory Master Configuration. This field is used to enter the Vendors catalogue number. You can also optionally print it in reports/invoices. Description The Description field gets enabled only after enabling Use Description for Stock Items in Inventory Master Configuration. This field is used to enter the description of the Stock Item as it is required to be printed in Quotations, Delivery Challan/Invoice. Remarks This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory Master configuration. This field is used to enter Remarks for the Stock Item (for internal use only). Any additional details about the Item can be entered here. Set/Modify Default Ledgers for Invoicing? This option gets enabled only after enabling Specify Default Ledger Allocation for Invoicing in Inventory Master Configuration. Once you enable this option, a screen will be displayed for selecting the default ledger allocation for sales and purchase for the stock item.

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No te : Th i s o p ti o n i s u s ef u l o n l y i n ca s e o f In vo i ce en t ry th ro u gh Vo u ch e r C l a ss.

Category This Category field gets enabled only after enabling Maintain Stock Categories in Inventory Master Features. This field will show the List of Categories. Here you can select the Stock Category under which the stock Item belongs. By default, Not Applicable is displayed in this field.
No te : Yo u ca n c r ea t e a n e w sto c k ca t ego ry b y p r essi n g AL T+ C a t th i s f i el d .

Alternate Units Alternative Units are individual units similar to simple units, which can be used instead of another simple unit during Invoicing / voucher entry and are also useful in displaying the stock reports alternatively in another simple unit. This is particularly useful when you need to handle different units at different times. This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in Inventory Master Configuration. Example: Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of wheat flour can be measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple units, which can be alternatively used.

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Maintain in Batches? This option gets enabled only after enabling Maintain Batch wise Details in Inventory Master Features. If you want to maintain the batch information of Stock Items, set the option Maintain in Batches to Yes. Track Date of Mfg? This option is enabled only when Maintain in Batches? is set to Yes. If you want to specify the manufacturing date for the item, set Track Date of Mfg. to Yes. Use Expiry Dates This option gets enabled only after enabling Set Expiry Dates for Batches under Maintain Batch Wise Details option in Inventory Features. If you want to specify the expiry date of the item, set Use expiry dates to Yes. This option is useful for stock items like medicines, Food items, etc. Set Component BOM This option gets enabled only after enabling Allow Component List Details (Bills of Material) in Inventory Master Configuration. Refer to Bills of Material for more details. Set Standard Rates This option gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory Master Configuration. This option helps you specify standard purchase rate and standard sales rates for the item. The standards are effective from the specified dates and they continue to be used at these rates until the next date, where the standard rate changes.
No te : Sta n da rd R a te s ca n a l so b e u s e d f o r va l u a ti o n o f cl o si n g sto ck .

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Behaviour Group Once you enable Allow Advanced Entries in Masters Behaviour Group option will be enabled. Options available under Behaviour Group are: Costing Method This field will display the List of Costing Method for valuating the Stock Item.

Depending upon the stock item, you can select the costing method for valuating the Stock item. A Brief description about each Costing Method: At Zero Cost: Cost of an item is considered as zero. For example, for defective items that have no commercial value. Avg.Cost: Periodic system: This is also known as Weighted Average Cost. The weighted average cost for the whole year is computed as below:

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Monthly system: In monthly average cost, weighted average cost is determined on a monthly basis instead of annual. FIFO (First-in, First-Out): Periodic System Under FIFO Periodic System, it is assumed that items purchased first are sold first under the current financial year (i.e., first lot from the opening stock of current year). Perpetual System Under FIFO Perpetual system, it is assumed that items purchased first are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of material received first in the period, while the cost of inventory is based upon the cost of material received last in the period. Last Purchase cost Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based upon the Last purchase rate. LIFO (Last-in, First-Out) Periodic system Under LIFO, it is assumed that items purchased last are sold first under the current financial year (i.e., first lot from the opening stock of current year) Perpetual System Under LIFO Perpetual system, it is assumed that items purchased last are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of materials received last in the period, while the cost of inventory is based upon the cost of material received first in the period. Standard Cost Standard Cost is Standard Rates specified in the Inventory master. Cost of goods sold and Cost of inventory is based upon the Standard Rates.

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Market Valuation Method By using Market Valuation Method, you can determine the realisable worth of an Item. Unrealised Profit of an Item = Closing value as per Costing Method method. Closing value as per Market valuation

Select the appropriate method applicable for the Item from the Valuation Methods List.

At Zero Price Realisable price of an item is considered as zero. Example: For defective items that have no realisable value in the market. Average Price Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for the financial year. Last Sale Price Item is valued at Last Sale Price. Standard Price User specified rate applicable for the current date specified in Item master under Standard Rate is taken as the realizable rate. Ignore Diff. due to Physical Counting? In Tally.ERP 9, you can record the physical stock as counted, using a physical stock voucher. If you wish to ignore the difference and continue with the stock as per books, set this option to Yes. Ignore Negative Balances? If you set this to Yes, Tally.ERP 9 ignores the item in the stock reports, in case it has a negative balance. Treat all Sales as New Manufacture? If you set this to Yes, whenever a sales entry is made, Tally.ERP 9 automatically updates the quantity and value in inward by treating the same entry as a New manufacture or purchase.

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Treat all Purchases as Consumed? If you set this to Yes, then, whenever a purchase entry is made, Tally.ERP 9 automatically updates the quantity and value in outward by treating the same entry as consumed. Treat all Rejections inward as Scrap? If you set this to Yes, then, whenever a rejection inward entry has been made [without tracking number], Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this case, you need not pass the credit note for reducing the value against rejection inward. This is used for defective items returned by the customer. Allow use of expired Batches? This option will get enabled once you enable the Use expiry dates under Maintain in Batches option. If you set this to Yes, during selection of batches in voucher entry, expiry batches also get included in the List of Active Batch.

Displaying a Stock Item

You can display the existing Single Stock Item master and Multiple Stock Item masters, since it is only display you are not allowed to alter any information in display mode. To display a Single Stock Item, Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item)

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Select the Stock Item you want to display from the List of Items. The Stock Item Display screen is displayed as shown.

Displaying a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item)

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Select a Stock Group or All Items from List of Groups to display the Stock Item under the selected group or All Items. The Multi Stock Item display screen is displayed as shown.

Altering a Stock Item

This option allows you to view the existing single Stock Item master and Multiple Stock Item masters in edit mode, here you are allowed to change the various information. In the Alteration mode, you can change the item master settings. If a transaction is entered for that item, it is not possible to alter the units and delete the stock item.

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To Alter a Single Stock Item, Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Single Stock Item)

Select the Stock Item you want to alter from the List of Items. The Stock Item Alteration screen is displayed as shown.

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Altering a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to alter the Stock Item under the selected group or All Items. The Multi Stock Item Alteration screen is displayed as shown.

No te : In th e M ul ti St ock I te m Al te ra ti o n s cre e n, y o u ca n cr ea t e a n I t em by sp e ci f yi n g i tem n a m e a f t er th e l a st i t em , bu t yo u ca n n o t d el e te a n i tem .

Units of Measurement

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Stock Items are purchased or sold on the basis of quantity. The quantity is measured by Units. Hence, it is necessary to create Units of Measure. You can have simple units such as numbers, meters, kilograms, and pieces or compound units like box of 10 pieces [1box =10 pieces] Go to Gateway of Tally > Inventory Info. > Units of Measure

Creating Simple Units of Measure

Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. Examples of simple units are: nos., metres, kilograms, pieces etc. To create Simple Units of Measure,

Go to Gateway of Tally > Inventory Info > Units of Measure > Create The Unit Creation screen is displayed as shown.

A brief explanation of each field in the Unit Creation screen is given below:

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Type This field will show the Type of Units.

 

Simple Compound.

Simple units are nos, pcs, etc. Compound unit is a combination of two simple units. By default Tally.ERP 9 will show the Simple unit for creating the unit of measure. You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the previous field]. Symbol Define the symbol of the unit, e.g., Nos. This symbol is used in all displays and printouts. Formal Name Specify the formal name of the symbol, e.g. Numbers. This formal name is useful during the consolidation of data of different companies, where the symbols might be the same but are assigned to different units. The formal name will be used to match them. Number of decimal places In this field you can specify the decimal places for the Units from 0 to 4. This field is useful for Units measured in fractions. Example: Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places required is 3.

Displaying a Units of Measure

You can display the existing Units of Measure, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode. To display Units of Measure, Go to Gateway of Tally > Inventory Info. > Units of Measure > Display Select the Unit of Measure you would like to view from the Units list. You can select a compound unit or a simple unit from the list. The Unit Display screen is displayed as shown.

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In di s pl a y mo d e i t i s n o t p o ssi bl e to ma k e a n y ch a n g e s.

Altering a Units of Measure

To alter Units of Measure Go to Gateway of Tally > Inventory Info. > Units of Measure > Alter Select the Unit of Measure you want to alter from the Units list. The Unit Alteration screen is displayed as shown.

Make the necessary changes and accept Yes to save or Press CTRL+A.
No te : In Al t era ti o n mo de , yo u ca n n o t a l t e r th e Nu mb er o f D eci ma l pl a c e s f i el d.

You can delete a Unit of Measure from this screen by pressing Alt + D. However, you cannot delete a Unit of Measure that is part of a compound measure. You must delete the compound measure first.

Creating Compound Units of Measure

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A Compound Unit is a relation between two Simple Units. Hence, before you create a Compound Unit, ensure that you have already created two Simple Units. Example: To Create Compound unit Doz (Dozen) of 12 Nos (Numbers), you have to create two simple units, Doz (Dozen) and Nos (Numbers) and set the conversion factor as 12. Go to Gateway of Tally > Inventory Info > Units of Measure > Create The Unit Creation screen is displayed as shown. Now Click on Type field or Press SHIFT + TAB or Press Backspace Key.

Select Compound from the Types of Units and press Enter. The Conversion field will be displayed for creating Compound unit.

Field Information: First unit: Select the First unit from the Units List. In the above example, Dozen will be the First Unit. Conversion: Specify the conversion Factor. In the above example, Conversion factor will be 12. Second Unit: Specify the Second Unit from the Units List. In the above example, Number will be the Second Unit. This unit is also called Tail Unit. Use CTRL + A or Accept the Screen for Saving of Compound Unit Creation.

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Bill of Materials

A Bill of Materials is a list of constituent items along with quantity details that can be allotted for the manufacture of a certain product, by-product or likewise. This facilitates immediate reduction in stock of the item automatically. This process of listing the items that make up another item is made possible in Tally by enabling the Bill of Materials Facility. Bill of Material (BoM) is created only for those items that are being assembled in-house. Therefore, you need to specify a BoM at the time of creating a Stock Item or while altering the stock item. For trading items, you do not need a BoM.

Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure. To setup Bill of Materials Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info. > set Allow Component List Details (Bill of Materials) to Yes

OR Go to Gateway of Tally > Inventory Info > Stock Items > Create > Press F12:Configure (Stock Item Configuration) and set Allow Component List Details (Bill of Materials) to Yes.

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For a Stock Item, you can create

y y y

A Single BOM Multiple BOM Single/Multiple BOM with Type of Item

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods. Let us create a new Stock Item Television and specify BoM. Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen

y y

Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit field Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes

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No te : Th e Se t C om p o ne nt s L i s t o p ti o n wi l l n o t di s pl a ye d i n S to c k It e m ma st er o n en a bl i n g th e co n f i gu ra ti o n o p ti o n Al l o w C om p o ne nt l i st d e ta i l s ( B i l l of Ma te ri a l ),o pti o n wi l l di spl a y i n i te m ma st er o n l y o n en t eri n g / s pe ci f yi n g th e u n i t o f mea su r e i n th e U ni t s f i el d .

y y

Press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen

Under Name of BOM specify component list Name - Standard and press enter to view Item Components (BOM) screen

Stock

In Stock Item Components (BOM) screen

BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture.

o o o o

No te : Th e go do wn o pti o n wi l l be di s pl a ye d o n l y wh en Ma i nta i n Mul ti p l e God o w n f ea tu r e i s en a bl ed i n F 11 : Fe a t ure s ( In ve nt o ry Fe a tu re s)

Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods.

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Observe to create 1 Television we require 5 different inputs. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.

Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Single Bill of Materials
All the manufacturing transactions can be accounted through a Stock Journal.

y y

To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufacturing Journal to Yes . Or Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes
No te : B i l l of Ma te ri a l sh o u l d b e cr ea t ed b ef o r e a cco u n ti n g th e ma n u f a c tu r e o f a n i t e m.

Go to Gateway of Tally > Inventory Vouchers 1. Select the button F7: Stk. Jrnl or press Alt + F7.

If you have created a new voucher type Manufacturing Journal, a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

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y y

Name of Product: Select the product which needs to be manufactured from the List of Items. BoM Name: In this field the BoM created for the stock item will be displayed automatically with one more option Not Applicable.
No te : Th e l i st o f R a w ma t eri a l s r e qu i r ed f o r th e ma n u f a ctu r e o f f i n i sh ed go o ds wi l l b e di spl a y e d i n C om p one n ts ( C on sum p ti on) si d e ba s ed o n th e B OM d ef a u l te d.

Godown: Select the godown where you would like to place the produced goods.
No te : G od o w n o p ti o n wi l l b e di spl a y e d o n l y wh en Ma i nta i n M ul ti p l e God ow n f ea tu r e i s en a bl ed i n F 1 1 : F ea tu r es ( In v en to r y F ea tu r es )

y y

Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in the BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

The completed Manufacturing Journal is displayed as shown

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished goods based on the availability of goods or customer requirements. The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the manufacturing Voucher.

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This feature will be useful where you are using different components to manufacture the same stock item based on the customer requirement Example: Customer A wants Television to be manufactured with specific brand of Picture Tube. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one forCustomer A as per his component specification & other may be a standard BOM for all other customers. To create multiple Bill of Material Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen

y y

Enter the Stock Item Name, select the appropriate stock group and specify the appropriate unit of measurement in Unit field Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen

Under Name of BOM specify component list Name - Customer A and press enter to view Stock Item Components (BOM) screen If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to identify the BOM while recording manufacturing transaction.

In Stock Item Components (BOM) screen

o o o o o o

BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods.

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y y y

Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen In Stock Item Multi Component screen enter the second Bill of Material nameStandard in Name of BOM field In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

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No te : In th e a bo v e sc en a ri o f o r S to c k i t em - Te l e vi si on we h a v e c rea t ed 2 B O M. Si mi l a rl y yo u ca n c r ea t e m ul ti p l e B OM wi th di f f er en t co m po n e n t l i st f o r th e s to c k i t em s.

Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials
In Manufacturing Journal voucher

y y

Name of Product: Select the product which needs to be manufactured from the List of Items. BoM Name: In this field Tally.ERP 9 displays the BOM List for selection of BOM, as multiple BOM are created for the finished goods.

No te : Th e l i st o f R a w ma t eri a l s r e qu i r ed f o r th e ma n u f a ctu r e o f f i n i sh ed go o ds wi l l b e di spl a y e d i n C o m po n en ts (C o n su m pti o n ) si d e ba s ed o n th e BO M def a u l t e d.

Godown: Select the godown where you would like to place the produced goods.
No te : G od o w n o p ti o n wi l l b e di spl a y e d o n l y wh en Ma i nta i n M ul ti p l e God ow n f ea tu r e i s en a bl ed i n F 1 1 : F ea tu r es ( In v en to r y F ea tu r es )

y y

Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in the BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

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Creating Single/Multiple Bill Of Material with Type of Item

In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced. In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured. Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Product/Co-Product/ Scrap. Let us take the case of manufacture of Sugar and create the BOM for the stock Item To create Bill of Material with Type of Item Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen 1. Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit field 2. Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen 3. In Stock Item Multi Components (M BOM) screen

Under Name of BOM specify component list Name as - Standard

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4. In Stock Item Components (BOM) screen, Set up:

In F12: Configuration, enable the option Define Type of Component for BOM to Yes

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new column Type of Item will be displayed.

BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. Type of Item: In this field select the appropriate type for the item selected.

y y y y y

o o

By-Product: Select this classification for the stock items which are produced as By-Product of finished goods Component: Select this classification for the Raw materials /inputs which are used or consumed for the production of finished goods.

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o o

Co-Product: Select this classification for the stock items which are produced as Co-product of finished goods Scrap: Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Products/ By-Products /scrap manufactured.
No te : C u r so r wi l l n o t mo v e to Ra te ( %) c o l u mn wh e n th e Co m p o ne nt T yp e s el e ct e d i s C on sum p ti on .

Rate (%): In this field you can specify the percentage of cost of components to be considered to determine the cost of production of Co-products/By-Products/Scrap.
No te : If th e C om p one n t Typ e sel ec te d i s C o- p r od u c t/B y - P r od u ct o r S cra p , cu rso r wi l l mo v e to R a t e ( %) co l u mn to d ef i n e th e p er cen ta g e o f co st o f p ro du cti o n o f C o -p ro du ct/ B yP ro du c t o r Sc ra p .

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

Observe to manufacture Sugar, Sugar Cane & Lime are (Component). Bagasse & Molasses are identified as By-Products.

identified

as Raw

materials

No te : W h en th e Ma nufa ct uri ng Jo ur na l i s r e co r de d to a cco u n t th e ma n u f a ctu r e o f Sug a r u si n g th e a bo ve cr ea t e d B OM th e s to ck i te m s i d en ti f i ed a s C om p one n t wi l l b e di spl a y e d u n d e rC om p one n ts ( Co ns um p ti on) se cti o n . Th e s to ck i te m s i d en ti f i e d a s C oP r od u ct /B yP rod uc t o r S cra p wi l l b e di s pl a y e d u n de r C o- P rod uc ts /B yP rod uct s /S cra p s ecti o n

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y y

Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If required you can create the second BOM for the stock Item Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with Component Type
In Manufacturing Journal voucher

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Name of Product: Select the product which needs to be manufactured from the List of Items. BOM Name: In this field the BoM created for the stock item will be displayed automatically with one more option Not Applicable. For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application displays the BOM list for selection

No te :Ba se d o n th e B O M s el e ct ed * Th e l i st o f Ra w m a te ri a l s r equ i r e d to ma n u f a ctu re f i n i sh ed go o ds wi l l be di s pl a y ed i n Com p one n ts ( C on sum p ti on) si d e * Th e B y - p r od u ct s & s cra p pro du c e d du ri n g th e ma n u f a ctu r e wi l l be di s pl a y ed u n de r CoP rod uct s /B y- P r od uc ts /S c ra p si d e Th e de f a u l t o f R a w Ma t eri a l s & C o- P r od u ct s/B y- P ro d uct s /Sc ra p wi l l be ba s ed o n th e Com p one nt T yp e d ef i n e d i n B OM .

Godown: Select the godown where you would like to place the produced goods.
No te : G od o w n o p ti o n wi l l b e di spl a y e d o n l y wh en Ma i nta i n M ul ti p l e God ow n f ea tu r e i s en a bl ed i n F 1 1 : F ea tu r es ( In v en to r y F ea tu r es )

y y

Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

Co-Products / By-Products / Scrap: In this section the co-products/ by-products/scrap produced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in BOM

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Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Quantity of finished goods manufactured.

% of Cost: In this field, the percentage specified in Rate (%) column for the By-products/CoProducts or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-products/By-Products/Scrap.

For field description refer Manufacturing Journals.

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM. Example: For stock item Television, ABC company has 2 BOM - Customer A and Standard. Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tube - Picture Tube LG. Except Picture Tube, the components used to manufacture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Customer B. To create the BOM Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Alteration

Alter Components (BOM): To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen

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o o

The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key) Enter the BOM Name - Customer B

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Press Enter to view Stock Item Components (BOM) screen In Stock Item Components (BOM) screen To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

In Copy BoM Details screen

Copy Component for BOM: In this field select the BOM from which the components to be copied. Here ABC company is copying the components from Standard.

Press Enter. The components of Standard BoM will get copied to BOM - Customer B.

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y y

Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field select the Picture Tube - LG and Retain other items/components.

No te : Cop y B O M o p ti o n co pi e s o n l y th e co m po n en ts o f o n e BO M to a n o th er. U s er s h a v e to def i n e th e U n i t o f Ma n u f a ctu r e a n d Qu a n ti t y o f i n pu ts (co m po n en ts ).

Locations / Godowns

Locations/Godowns are places where Stock Items are stored. You can monitor the location-wise movement of stock by creating multiple Godowns. Example: Suppose you have three Godowns, where you store the Goods. In Chennai, you have two Godowns and in Bangalore, one Godown. You can create Godowns as shown below: Godown Godown A Godown B Godown C Under Chennai Chennai Bangalore

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First you have to Create Chennai and Bangalore locations and then you have to create Godowns under the respective location. Tally.ERP 9 has a default Godown named Main Location. You can alter Tally's default godown and create a new one. Tally.ERP 9 permits the creation of any number of godowns, under groups and subgroups to match the structure you need. You can create Locations/Godowns only if Maintain Multiple Godowns is enabled in F11: Features > F2: Inventory Features.

Go to Gateway of Tally > Inventory Info. > Godowns

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No te : Th e t e rm L oca ti on s i s di s pl a y ed i n th e I nve n t or y Inf o. m en u , i f I nte r na ti ona l i s sel ect e d u n d er U se Ac co unti ng Te r m i nol og y of i n G e ne ra l C onfi g ura ti on (Ga t e wa y o f Ta l l y > F 1 2 :C o n f i gu r e) sc re en . If I nd i a /S AA R C i s s el ec te d, th e t er m G od ow ns i s di spl a y e d.

Creating a Location/Godown

Godowns is a place where stock items are stored. You can specify where the stock items are kept. You can obtain stock reports for each Godown and account for the movement of stock between locations/Godowns.

You can create Locations/Godowns in Single mode and Multiple mode

Creating a Single Location/Godown

To create a Location/Godown, Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Create (under Single Godown) The Location/Godown Creation screen is displayed as shown:

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A brief explanation of each field in the Location/Godown Creation screen is given below:

Name Specify the name of the Location/Godown. Alias Enter an alias name for the Location/Godown name, if required. Under Specify the Location/Godown under which the Location/Godown is to be categorised. Use Alt + C to create the parent Location/Godown if it is not in the list. Select Primary, if it is not a sub Location/Godown of any Location/Godown. Use for This section is provided in Tally.ERP 9 Release 3.0 where users can create the godowns to store: The stock of the company lying with third party like Consignment Agent, Bonded Ware house, Job worker, etc. Or Third Party stock lying with the company in case company has received the stock for Job Work or acting as consignment agent or for any other reason.

y y

Our Stock with Third Party: Set this option to Yes if the godown is used to account the company's goods lying with the third party. Third Party Stock with us : Set this option to Yes if the godown created is used to account the goods received from third party and the stock of third party should not affect the company stock value.

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Creating a Single Location/Godown Advance Mode:

Advance Mode indicates enabling certain options in Inventory master configuration screen in order to add or remove field which require in Godown Master. In the Godown Creation screen, press F12: Configure (Godown Configuration) screen is displayed as shown.

1.

Use Addresses for Godowns: Setting this option to Yes enables the Address field in Godown Master

Accts / Inventory Info. Configuration Go to Gateway of Tally > F12: Configure > Accts /Inventory Info. 1. Allow Advanced Entries in Masters: Setting this option to Yes enables the Allow Storage of Materials option in Godown Master.

The Location/Godown Creation in Advance Mode screen is displayed as shown.

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A brief description of each additional field in Godown Creation screen is given below. Address This field is a Multi-Line Field. You can enter the Address for Godown. Allow Storage of Materials This option is used for deciding whether storage of material is allowed in this Godown or not. The Godown for which the Allow Storage of Materials is selected as No, will not appear in the Godowns list, during Voucher entry. Example: Godown A is under Chennai Location. Here, Chennai is a Location and Godown A is a place where material is stored. For Chennai, Allow Storage of Materials is set to No, since this will not store the material. During Entry, Chennai will not get listed in the List of Godown. For Godown A, Allow Storage of Material is set to Yes, since this will store the material. During Entry, Godown A will get listed in the List of Godown.

Creating Multiple Locations/Godowns

Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Create (under Multiple Godowns) The Multi Godown Creation screen is displayed as shown.

Under Godown Select the parent group under which you want the new Godowns to be created. If you select any specific Godown other than All Items, then all the new Godowns will be created under that Godown. Selecting All Items gives you the flexibility of specifying the parent of each new Godown created.

Name Specify the name of the Godown.

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Under If you select All Items in the field Under Godown, you must specify a parent Godown here. If you select a specific Godown in the field Under Godown, that Godown will be displayed automatically in this column.

Displaying & Altering a Stock Location/Godown

You can display/alter the Godowns in single and multiple modes. It is similar to Displaying/Altering Stock Groups in single and multiple modes. Refer Displaying/Altering Stock Groups for more details.

To display a single stock Location/Godown

Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Display (under Single Location/Godown)

To display multiple stock Locations/Godowns at a time

Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Display (under Multiple Locations/Godowns)

To alter a single stock Location/Godown

Go to Gateway of Tally Location/Godown) > Inventory Info. > Locations/Godowns > Alter (under Single

To alter multiple stock Locations/Godowns at a time

Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Alter (under Multiple Locations/Godowns) You can delete a Godown/ location via Single Godown/Location Alter by pressing [Alt]+[D]. However, you cannot delete a Godown/location with sub-locations. The lower levels must be deleted first.

Batches & Expiry Dates

Batch details are used to identify the movement of the inventory in batches or lots. Although this is a requirement primarily of the pharmaceutical industry, the same can be used by other industries who maintain or manufacture perishable goods. Many organizations also purchase in lots in order to monitor the lots purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot. Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the expiry date.

Activating Batch-Wise Details

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To Activate Batch-Wise Details in Tally.ERP 9, 1. Enabling Maintain Batch-wise details and Set Expiry Date for Batches in F11: Inventory Features. Enable the following options related to batches in the Stock Item Master to Yes. a. Maintain in Batches b. Track date of manufacture c. Use Expiry Dates

2.

Manufacturing date & Expiry date for Batches

This feature is useful for businesses that deal in goods that have expiry dates like medicines, food and other perishables. During voucher entry, the date of the voucher is taken by default as the date of manufacture of the product. This can be changed but not to a date later than the voucher date. Expiry date cannot be a date prior to the voucher date.
No te : Th e ma n u f a ctu ri n g da t e ca n n o t b e l a t er th a n th e v ou ch e r da t e. Th e e xpi ry da t e ca n n o t b e ea rl i e r th a n th e ma n u f a ctu ri n g da t e.

Entering Batch-wise details for purchase voucher

Example: Voucher Date: 1-10-2008. Purchase 250 nos. @ Rs.10 each. Batch no. SP-1062 having the manufacturing date 01-09-2005 and Expiry date 01-10-2008.

In the manufacturing date field, by default it takes the voucher date in the format of month and year. In Expiry date filed, by default it set as Blank. You can specify the expiry date. Selecting Batch-wise details for sales voucher:

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Example: Voucher Date:1-10-2008. Sales 100 nos. @ Rs.15 each against Batch no. SP-1062.

In List of Active Batches, SP-1062 batch is displayed for selection,since the Expiry Date is not earlier to the Sale Voucher Date. If Sales voucher date is on 02-10-2008, Expiry Date is earlier than the Sale voucher date and it will not be displayed in the List of Active Batches. This is because the option Honor Expiry Dates usage for Batches is set to YES in F12 Configure (Voucher Entry Configuration). If you want to list the expiry batches during sales entry, set NO to Honor expiry Dates usage for batches in F12 Configure.

Inventory Voucher Types

There are 18 different pre-defined Voucher types in Tally.ERP 9. Voucher type pertains to both Accounting and Inventory. These are used for recording various transactions according to the user needs. Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales transactions e.g. Credit Sales, Cash Sales, etc. If a voucher type is created, you can:

y y y y y y y

Have the different Voucher numbering methods. Give own prefix and suffix details for the voucher numbering. Use the Effective Dates for the vouchers. By default make some vouchers optional if required. Decide to have the Common Narration or Narration for each entry Automate the printing immediately after saving the vouchers. Get separate reports for each type of voucher.

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Creating an Inventory Voucher Type

Tally.ERP 9 is pre-programmed with a variety of inventory vouchers, each designed to perform a different job. You can alter these vouchers to suit your company, and also create new ones.

Pre- defined voucher types:

There are 18 pre-defined Voucher types in Tally.ERP 9. Voucher type pertains to both Accounting and Inventory. These are used for recording various transactions according to the user needs. Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales transactions e.g. Credit Sales, Cash Sales, etc. To create a voucher type, Go to Gateway of Tally > Inventory info > Voucher types > Create

Display/Alter a predefined voucher type

Selecting these options brings up a List of Voucher Types, from which you can select the one you want to view or work on. Apart from the heading, the Voucher Type Display/Alter screens are identical to the Creation screen. To alter a voucher type, From Gateway of Tally > Inventory info > Voucher types > Alter

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Even if you do not need extra voucher types, you would normally alter the predefined voucher types to customize them according to your needs, e.g., to control their numbers.

Creating a Manufacturing Journal Voucher Type

In Manufacturing/Assembling organisations, there are number of components that go into the manufacturing/ assembling of finished Goods. Once, the Bill of materials is created, you can use Manufacturing Journal and specify the quantity of finished goods that are to be manufactured. To create a Manufacturing Journal Voucher Type,

Go to Gateway of Tally > Inventory Info > Voucher Types > Create

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Name Enter the name of the Voucher for ex: Manufacturing Journal Type of Voucher Select Stock Journal from the List of Voucher Types Method of Voucher Numbering You can select the method of voucher numbering as required. Use Advance Configuration Enable the options as required. For more details refer Creating a Voucher Type with Advanced Configuration Use a Manufacturing Journal Set this option to Yes. Once this option is set to Yes, you will be able to pass the manufacturing Journal. You can also alter the existing Stock Journal Voucher type and set Use as a Manufacturing Journal to Yes. Go to Gateway of Tally > Inventory Info > Voucher type > Alter > Stock Journal

No te : On c e th e Sto c k Jo u rn a l i s s et f o r U se a s a S to c k Jo u rn a l . a l l sto c k j o u rn a l vo u ch ers wi l l be tr ea t e d a s Ma n ufa c tu ri ng jou r na l s.

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Inventory Voucher Class

Inventory Voucher Classes are used to automate Inventory Allocations in transactions. It is a table for predefining the entries to make Invoice entry a simple task. This is particularly useful in Stock Journals where the transfer of materials from one godown to another and vice versa has to be updated without updating the books of Accounts.

Creating Stock Journal Voucher Class

Stock Journal classes allow you to handle transfers from one location (Godown) to another, for companies having Multi-Location Inventory and at least two location/Godowns. Once the class is selected, you will need to specify the Destination and provide the list of items to be transferred. Through this class all items/batches thus selected will be exactly mirrored to the destination, including Batch Number, Rate and Value. The user can either alter the existing Stock Journal or create a new voucher type based on the requirements. Go to Accounts Info > Voucher Types > alter > Stock Journal Enter a name in the field Name of Class. (Eg: Transfer)

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Class: The Transfer screen is displayed. To create a class for inter-godown transfer, set the option Use Class for Inter-Godown Transfer to Yes.

Voucher Entry in Tally.ERP 9

A Voucher is a document that contains details of a financial transaction and is required for recording the same into the books of accounts. For every transaction, you can use the appropriate Tally Voucher to enter the details into the ledgers and update the financial position of the company. There are basically two types of Voucher Entries:

y y

Accounting Vouchers Inventory Vouchers

The Voucher Entry Menus options are available under Transactions in the Gateway of Tally. The Payroll and Order Vouchers are available as separate options which can be enabled based on the requirements. The Payroll Vouchers can be enabled from F1: Accounting Features, whereas, the Order Vouchers can be activated from F2: Inventory Features.
No te : I f th e co mpa n y i s ma i n ta i n ed wi th A cc ou nt s O nl y C om p a n y, I nve n to ry V ouc he r s o pti o n wi l l n o t b e di spl a y e d u n d er Tra n sa ct i o n s.

Accounting Vouchers

Accounting Vouchers are used to record all accounts related transactions in Tally.ERP 9. You can selectively set the configuration for entry to allow only those features, which you require while entering vouchers. Go to Gateway of Tally > F12: Configure > Voucher Entry

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For more information refer F12: Configurations for voucher entry.

Predefined Vouchers in Tally.ERP 9

Tally comprises of the following predefined Vouchers, to suit different business requirements for recording various transactions. Tally also allows you to create user-defined Vouchers (Voucher Types) as per your requirements.

y y y y y y y y

Contra Voucher Payment Voucher Receipt Voucher Journal voucher Sales Voucher / Invoice Debit Note Voucher Credit Note Voucher Purchase Voucher / Invoice

Voucher Entry

The Voucher Entry screen is divided into three parts:

The Main Voucher Entry

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y y

Button Bar Calculator

Voucher Entry Screen components

Main Voucher Entry Area The Main Voucher Entry Area is where you enter all your transactions. This area has fields for Date, Ledger Name and Amount as well as additional pop-up screens that are dependent on your voucher configuration and the nature of transaction you make. Button Bar The Button Bar area displays buttons that provide quick links to various functions and features of Tally.ERP 9. Buttons that are relevant to the current task are enabled and the other buttons are disabled. Calculator Area The Calculator area provides a working space where you can enter any number of mathematical formulae for complex calculations.

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Switching between Screen Areas The Main Voucher Entry Area is the active area by default on the Voucher Creation screen. Press Ctrl+N to navigate to the Calculator Area and press Ctrl+M to toggle back to Main Voucher Entry Area. A green bar highlights the active area of the screen.
No te : P re ss Al t+ C to u se ca l cul a t o r wh en a t a mo u n t f i el d.

Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Checking the accuracy of the vouchers

To check the accuracy of the vouchers that you have entered: Go to Gateway of Tally > Display > Day Book 1. Select F2: Period from Button Bar and enter the period for which you want to view Vouchers.
No te : I t def a u l t s to th e cu r r en t da t e o n l y bu t yo u ma y di s pl a y a l l th e t ra n sa c ti o n s f o r a pa rti cu l a r p eri o d.

Select F1: Detailed You can check the vouchers for correctness. To correct a mistake, position the cursor on the item where you have found the error and press Enter. Tally.ERP 9 displays the voucher details for alteration. The alteration facility is subject to security and access rights. All alterations are available for audit.

Contra Entry

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Cash A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction indicating transfer of funds from:

y y y y

Cash account to Cash account Cash account to Bank account Bank account to Cash account Bank account to Bank account

To view the Contra Voucher Entry Screen: Go to Gateway of Tally > Accounting Vouchers

Select F4: Contra from the Button Bar or press F4

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Creating Contra Entry in Single Entry Mode

The Contra Voucher can be passed using Single entry mode or Double Entry mode. To toggle between Single Entry and Double Entry mode, we need to change the setting Use Single Entry mode for Pymt/Rcpt/Contrato Yes/No in F12 configuration.

Refer to F12: Configuration in Tally.ERP 9 for more details. To view Contra Voucher creation screen in Single Entry mode: Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra For example, to transfer funds from Cash Account to Bank Account: 1. 2. Debit the Bank Account Credit the Cash Account

The entry will be displayed as shown.

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Advantages of Single Entry Mode:

y y

Faster data entry. When there is a Single Debit and Multiple Credits in the entry.

Creating Contra Entry in Double Entry Mode

The Contra entry can be passed using Double Entry mode where we have the option to select multiple Debits and multiple Credits. To select multiple Debit and Credit ledgers in the Double entry mode, set Use Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.
Refer to F12: Configuration in Tally.ERP 9 for more details.

Entering in Double Entry Mode

Go to Gateway of Tally > Accounting Vouchers 1. Select F4: Contra from the Button Bar or press F4.

If you pass the same entry in Double Entry Mode, it will be displayed as shown:

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No te : I f yo u r equ i r e Cr /D r i n st ea d o f T o /B y , a s ex pl a i n ed i n th e Co nfi g u ra ti o n s ec ti o n , a cti va t e th e o p ti o n Use C r/D r i n ste a d of To /B y d u r i ng e ntr y i n F1 2: Co nfi g u re .

Use Payment / Receipt Voucher as Contra

The Contra Voucher is used to indicate transfer of funds from

y y y y

Bank account to Cash account Bank account to Bank account Cash account to Bank account. Cash account to Cash account.

When you are passing a Payment voucher, you do not get the Cash and Bank Ledgers for selection in the list of Ledger Accounts on the Debit side and when you are passing a Receipt voucher, you do not get the Cash and Bank Ledgers for selection on the credit side. However, for users who wish to use the Payment and Receipt vouchers for this nature of transaction, Tally.ERP 9 has the flexibility of defining Payment and Receipt behaviour as per Contra voucher. Go to Gateway of Tally > Accounting Vouchers 1. Select F5: Payment from the Button Bar or press F5.

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2. Set the option Use Payment as Contra to Yes in F12: Configuration screen.

3.

Click Accept to save.

Refer to F12: Configuration in Tally.ERP 9 for more details. If the option Use Payment as Contra is set to Yes in the F12: Configure screen, the cash and bank accounts will be displayed for selection.

If the option Use Payment as Contra is set to No in the F12: Configure screen, the cash and bank accounts will not be displayed.

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Payment Entry

Payment voucher is used to account all the payments made by the company by way of Cash/Bank. . Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.

Creating a Payment Entry

Payment Voucher is used to record all bank and cash payments, For example: company settles a creditor's bill by cheque.

To view the Payment Voucher entry screen: Go to Gateway of Tally > Accounting Vouchers

Select F5: Payment from the Button Bar or press F5. configuring the

Payment voucher can be passed using Single Entry or Double Entry mode by setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.

For example: the company settles expenses of Conveyance, Staff Welfare, Postage and Stationery through Cash in one voucher. This entry can be passed in single entry mode where you will be crediting the Cash Ledger only once and the entry appears as shown below.

136

No te : Si mi l a rl y th e t ra n sa c ti o n s ca n be r eco rd e d i n si n gl e en t ry mo d e e ven i n R ec ei p t a n d C o n tra v o u ch e rs .

Payment entry in Voucher entry mode:

When you have multiple Debits and Credits in an entry, Double Entry mode is the suggested way of passing the entry.

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Creating a Payment Entry with Narration for each Entry

If you want the narration details for every ledger you debit or credit (Single narration), you can configure Tally.ERP's Narration details accordingly. To activate the option Narration for each entry, Go to Gateway of Tally > Accounts Information > Voucher Types > Alter 1. 2. 3. Select the required Voucher Type. Enable the option Narrations for each Entry and accept the details. Return to Accounting Vouchers in Gateway of Tally and select the voucher type and pass the entry.

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Narration for each entry option is available for all Accounting Voucher Types. Given below is an example of a Payment transaction with narrations for each entry enabled:

The above entry consists of both common narration and narrations for each entry. In case of multiple debit/credit entries, you can give single line narration separately for every ledger account selected.

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Special Keys for Voucher Narration Field

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Warn on Negative Cash Balance

You can configure Tally.ERP 9 to prompt you with a warning when the Cash ledger reaches a negative balance. To activate Warning on Negative Cash Balance, Go to Gateway of Tally > Accounting Vouchers

Set the option Warn on Negative Cash Balance to Yes in F12: Configure screen.

Accept the screen to save.

For Example: Let us assume there is a cash balance of Rs.25000 and you need to make a payment of Rs.26000 towards Advertising expenses. This results in a negative cash balance. The Payment entry is displayed as shown:

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Tally.ERP 9 prompts you with a negative cash warning message and the credit cash balance in RED Colour. This will help you to decide whether to proceed with the entry or not.

Pre-Allocate Bills for Payment/Receipt

By enabling this option in F12: Configure, you can pre-allocate the bills before specifying the Ledger amount. This Configuration enables the user to select the bills first before the total amount can be updated in the amount field. For Example: The company pays against the Purchase bills. Here set the option Pre-Allocate Bills for Payment/Receipt as Yes. Now while making the entry immediately after selecting the party the Bill-wise details screen for the party appears.

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Here on selecting Agst Ref the List of Pending Bills for the party are displayed.
No te : F o r th e P e nd i ng B i l l s ta bl e to be di s pl a y ed th e F 12 o pti o n S ho w Ta b l e o f B i l l D e ta i l s fo r Se l e cti on sh o u l d be s et to Y e s . If i t i s s e t to No th en th e l i st o f p en di n g bi l l s a re n o t di s pl a y e d

After selecting the Bills press Enter to obtain the voucher entry screen

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In the above screen it can be seen that the Bill-wise details are also appearing in the voucher entry screen.

y y

To obtain this Billwise details, the F12:Configure option Show Bill-wise Details should be set to Yes. To obtain the Credit period, the F12:Configure option Expand into multiple lines should be set to Yes.

Receipt Entry

Any money received from debtors against sales Invoices or on Account and for all transactions where money is received are accounted or entered into Tally.ERP 9 using the Receipt Voucher.

Creating a Receipt Entry

Any money received from debtors against sales Invoices or on Account and for all transactions where money is received are accounted or entered into Tally.ERP 9 using the Receipt Voucher. To view the Receipt Voucher screen: Go to Gateway of Tally > Accounting Vouchers

Select F6: Receipt from the button bar or press F6.

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For example, if your company receives money from a customer for an earlier transaction say sales, and the same is passed through a Receipt Voucher:

y y

Credit the customer account and debit the Cash account, if you receive cash or Debit the Bank account where you need to deposit the money, if you receive Cheques.

The entry in double-entry mode is displayed as shown:

No te : Si mi l a r to P a ym en t a n d C o n t ra v o u ch e rs , th e R ec ei p t vo u ch e r ca n b e ma de u si n g Si n gl e en t ry mo de o r Vo u ch er mo d e .

Special Keys for Voucher Narration Field

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Printing Receipt Voucher as Formal Receipt

Suppose the company receives a payment from a customer against a particular invoice and a Formal Receipt has to be issued acknowledging receipt of the same. To activate this facility: Go to Gateway of Tally > Accounts Info > Voucher Types > Alter

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1. 2. Select the Voucher Type Receipt. Set the option Print Formal Receipt after saving to Yes.

3.

Click Accept to save.

The printed Formal Receipt is shown as below after making the Receipt Entry:

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No te : An a d di ti o n a l f i el d Na m e o n Re ce i p t a pp ea r s i n th e Re ce i p t V o uc he r scr e en . Th e re cei pt wi l l be p ri n te d ei th er wi th th e Le d ge r Na m e o r th e n a me gi v en i n th e Na m e o n R ec ei pt f i el d .

To print the Receipt voucher, Go to Gateway of Tally > Accounts Info > Voucher Types > Alter 1. 2. 3. Select the Voucher Type Receipt. Set the option Print after saving voucher to Yes. Enter a receipt voucher and Tally.ERP 9 prompts to print the Formal Receipt (to be issued) and then the Receipt Voucher (for the company's records). In F12:

4.

The Receipt voucher for the same information is printed as shown:

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No te : Th e i n f o rma ti o n re qu i r ed ca n b e co n f i gu r e d u n d er F12 : Co nfi g u re a f t er gi vi n g th e P ri n t C o m ma n d.

Purchase Entry

Purchase voucher is used to record the Purchase transactions of the company. The entry can be passed using the Voucher mode or the Invoice mode where the calculations can be automated and the user can experience the ease of feeding the transactions into the system.

Creating a Purchase Entry

147

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase transactions of the company. To pass a Purchase Voucher: Go to Gateway of Tally > Accounting Vouchers

Click on F9:Purchase on the Button Bar or press F9.

For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/a) Debit Purchase Account b) Credit Party Account

To pass a Purchase entry in the Invoice mode, you need to enable the option Allow Invoicing option in F11:Features (F1: Accounting or F2:Inventory Features). Invoice mode is of two types, namely

y y

An Account Invoice An Item Invoice

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Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an Account Invoice. This is useful especially when a Service Bill is entered and does not include Inventory. Pass a purchase Invoice for Service availed from XYZ Couriers.

Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger account. This is useful to record all the Inventory movements in books of account. Pass a Purchase Invoice against purchase of Item A Company. 100 Nos. @ Rs. 10/= per quantity from LMN &

149

Configuring a Invoice
Before creating the Purchase Invoice, you can set your Invoice Configurations from F12 configure: Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice)

Select F12 Configure.

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Set the options, as required.

Purchase Invoice Configuration

1. Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the default name and address present in the ledger. 2. Allow separate Buyer and Consignee names: Customers who are into consignment business and would like to have the Consignee details on the Invoice, have to set this option to Yes. 3. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single Purchase Ledger in the Invoice, you need to set this option to Yes for faster data entry. 4. Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically as defined in voucher type master in ascending order. 5. Use Additional Description(s) for Item Name: If you would like to specify any additional description for item during entry, this option has to be enabled. 6. Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice, set this option to Yes. 7. Importer s Options: This is useful for import transactions. 8. Show turnover achieved with Customer: This option will help to view the turnover details during entry. 9. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields. 10. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with quantity details. You can then check which item is having negative stock balance. 11. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by configuring this option.

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12. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry. 13. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering the additional Expenses. For more details on Purchase Voucher mode configurations refer Voucher Entry Configuration

Special Keys on the Button Bar:

When you are passing an Item Invoice in Invoice mode, the following options will be available in the Button Bar. Alt+I Acct Invoice You can toggle between Item Invoice and Account Invoice, by clicking on this option on the Button Bar or pressing Alt+I or vice-versa. Ctrl+V As Voucher You can toggle between Invoice mode and Voucher mode, by clicking on this option on the Button Bar or pressing Ctrl+V or vice-versa.

Special Keys for Voucher Narration Field

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Creating Purchase Entry for Expenses/Fixed Assets

In the normal scenario when a Purchase voucher is entered, only the Ledgers created under Purchase Accounts are displayed for selection. In certain cases if the user would like to pass the Expenses incurred or Fixed Assets purchase through a Purchase voucher which are normally entered using Journal voucher, the same is possible by enabling the option Allow Expenses/Fixed Assets in Purchase Vouchers in F12: Configure ( Voucher Entry Configuration) in voucher mode.

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For Example: Pass a purchase entry towards purchase of Computers from Supplier A. 1) Debit Computer Account (Grouped under Fixed Assets). 2) Credit Supplier A Account.

No te :

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1 . On en a bl i n g Al l o w E xp en s es / F i x e d A ss et s i n P u rch a se vo u ch er s i n In vo i c e mo d e th e F i xe d A ss et a n d E x p en s e l e dg e rs a pp ea r f o r Ac co u n ti n g Al l o ca ti o n f o r i t em s. 2 . Th e C u rr en t A ss et l ed g ers a p pea r b y de f a u l t. In vo u ch er mo de th e C u rr en t A ss et l ed g ers a pp ea r a f te r th e D r a n d C r f ro m th e 3 rd l i n e. In i n vo i ce mo d e th e sa m e a pp ea r s a s a ddi ti o n a l l e dg er s.

Sales Entry

Sales Voucher is used to record the Sales transactions of the company. You can pass an entry using the Voucher mode or the Invoice mode where the calculations can be automated and the transactions can be fed into the system easily.

Creating a Sales Entry

When a company sells goods on credit or cash, Sales voucher is used to record all the Sales transactions of the company.

To pass a Sales Voucher: Go to Gateway of Tally > Accounting Vouchers

Click on F8:Sales on the Button Bar or press F8.

For example, if you are selling goods to Debtor A for a value of Rs. 10000/a) Debit Customer s Account

b) Credit Sales Account

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Creating a Sales Invoice

When a sales transaction is made, a document detailing the transaction (item name, tax, etc) has to be given to the buyer or debtor as proof of purchase by him. This document is called Invoice or Bill or Cash Memo. Tally.ERP 9 provides the option of creating Invoices. Invoice mode is of two types. It may be:

y y

An Account Invoice An Item Invoice

Account Invoice:
Sales Account Invoice is generally used by professionals such as doctors and consultants who require to issue an invoice for certain services provided such as consultancy charges, professional fees, etc. Trading and manufacturing organizations also use the Account Invoice for invoicing service charges. On the Sales entry screen, click on Acct Invoice button, which is displayed on the Button Bar on the righthand side of the screen to display the Sales Account Invoice screen as shown. Pass a Sales Account Invoice for Service provided to Debtor B:

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Tally.ERP's Account Invoice mode displays the list of ledger accounts, which can be invoiced as required. This is unlike Item Invoice where Tally.ERP 9 displays the list of stock items.

Item Invoice:
Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing organizations commonly use this format. On the Sales invoice screen, click on the button Item Invoice, which is displayed on the Button Bar on the right side of the screen and the Sales Item Invoice appears as shown below: Pass a Sales Invoice against sale of Item A 50 Nos. @ Rs. 15/= per quantity to Debtor C:

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Tally.ERP's Item Invoice mode displays the list of stock items, which can be invoiced as required. Special Keys for Voucher Narration Field

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Configuring a Invoice

Before creating the Invoice, you can set your Invoice Configurations from F12 configure: Go to Gateway of Tally > Accounting Vouchers > F8: Sales/F9: Purchases (As Invoice)

Select F12 Configure.

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Set the above options, as required.

Sales Invoice Configuration

1. Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Allow separate Buyer and Consignee names: Customers who are into consignment business and would like to have the Consignee details on the Invoice, have to set this option to Yes. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single Sales Ledger in the Invoice, you need to set this option to Yes for faster data entry. Use Defaults for Bill Allocations: Setting this option to Yes will allocate Bill Numbers automatically as defined in voucher type master in ascending order. Use Additional Description(s) for Item Name: If you would like to specify any additional description during entry, this option has to be enabled. Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice/Challans, set this option to Yes.

2.

3.

4.

5.

6.

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7.

Use Pre-Closure Order Details: To pre-close an order while raising a sales invoice for partial execution, this option needs to be enabled. Exporters Options: This is useful for exporting and importing transactions. Show turnover achieved with Customer: This option will help you see the turnover details during entry.

8. 9.

10. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields. 11. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with quantity details. You can then check which item is having negative stock balance. 12. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by configuring this option. 13. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry. 14. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering additional Income/Expenses.

Printing a Sales Invoice

To print any Invoice/voucher, press ALT+P or click on the button Print. You can configure the voucher type to print automatically after saving the voucher for which, the option Print after saving Voucher must be set to Yes.

No te : Yo u ca n co n f i gu r e th e p ri n ti n g o p ti o n s, by sel e cti n g th e a p pro pri a t e bu tto n s. Yo u ca n gi v e a ddi ti o n a l i n f o r ma ti o n , ch a n g e ti tl es , pri n t a ddi ti o n a l pa g es , a n d ch a n ge pri n t e r se tti n g s.

Buttons specific to sales invoice printing options

Button Behavior

Shortcut

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Keys L I T G R F C S Alt+L Alt+I Alt+T Alt+G Alt+R Alt+F Alt+C Alt+S To select the language in which the Invoice is to be printed. To preview the Invoice To change the Report Titles To select the Page range for printing To change the method of printing To change the print format/mode To increase/change the number of copies to print To change/select the Printer

The buttons Pre-Printed and Quick Format toggle between Plain Paper and Neat Format respectively. These are print specifications that you set. Pre-printed is for pre-printed stationery. Quick Format does not give fonts or other niceties but is ideal for fast printing. The Invoice Printing Configuration appears as shown.

Set the print options as desired. You can configure the invoice as per your requirement. The options depend on the various F11: Features and F12: Configure parameters, that have been set for your company and for the voucher either by you or by the administrator. The printed Sales Invoice will appear as shown:

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Allow Income Accounts in Sales Vouchers

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Generally, all the Sales made by the Company are recorded using Sales Voucher. In certain cases, the user would like to record the Income ledgers also in the Sales Voucher, the same is possible by enabling the option Allow Income Accounts in Sales Vouchers in F12 configuration in voucher mode.

For Example: Pass a sales entry towards Professional Income from Customer A. 1. 2. Debit Customer A Account Credit Professional Income Account grouped under Indirect Income

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No te : 1 . On en a bl i n g Al l o w In co m e Ac co u n ts i n Sa l es Vo u ch er s th e In c o m e l e d ge r wi l l be a va i l a bl e f o r s el e cti o n i n vo u ch e r mo d e f o r c re di t i n th e s e co n d l i n e. 2 . In i n vo i c e mo d e th e i n co m e l e dg e r wi l l b e a va i l a bl e f o r A cco u n ti n g a l l o ca ti o n a n d a l so a s a ddi ti o n a l l e dg er .

Inventory Allocations & Other features in Purchase / Sales Vouchers

If the Purchase and Sales vouchers are to be considered in financial transactions along with Inventory details, you need to enable the option Inventory Values are affected in Ledger Master. The inventory details that you give in an accounting voucher (like Sales and Purchase Voucher), affects stocks by immediately updating them, only if Tracking Numbers is not activated in F11: Features. The information that you need to give in the inventory allocation sub-screen depends on the features enabled for the company. A typical inventory allocation sub-screen appears as shown.

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Name of Item Select item from the list of items or create a new item by pressing Alt+C Location If you have more than one location you must specify the location to which this item is related. 1. 2. Set Maintain Multiple Godowns to Yes in the F11: Inventory Features. Specify the Godown, Quantity, Rate and Amount for the item.

You can have different Godown locations. The default godown available is Main Location.

Quantity We have to specify the quantity of stock item which is purchased/sold. Enable the option Actual and Billed Quantities to Yes from F11:F2 Inventory features. The actual quantity updates stock and the billed quantity affects the accounts. Give the quantity either in the main unit or the alternate unit. You may even specify quantities in both units (i.e., with alternate units), for example 1 dozen = 12 Nos. Rate Enter the rate for the Stock Item. If you have entered Standard Rate for the item (Standard Cost and Standard Selling Price see Item Master), the voucher will select the relevant standard rate for that date by default. You can modify it while entering the voucher. Per Enter the unit of measure for the quantity of the item here. This can be the main unit or even the alternate unit. Amount The quantity multiplied by the rate per unit is the amount. End of List In all multiple allocations or selections, you have to select the option End of List or press Enter, at the first blank field. This would accept the multiple allocations and take you back to the parent screen. For example, Multiple Locations, Batches or Items.

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Batch Wise Details If you wish to maintain the Inventory in Batches, you need to set the option Maintain Batch-wise Details to Yes in F11:F2: Inventory Features. If required, you can also set the option Set Expiry Dates for Batches to Yes. Once you do this, you will see the option Maintain in Batches in the Stock Item Creation Screen. If you set this to Yes, you will find the following in the Item Allocation screen:

y y

Track Date of Mfg Use expiry dates

Batch Number Select a batch number from the list of existing batch numbers, or create a new number for a new batch. Mfg. Date Mfg Date appears only if it is activated. Enter the date of manufacture. This enables you to set the expiry date for the batch as a period from the date of manufacturing. For example, three months from the date of manufacture. Expiry Date This field appears, only if it is activated. Enter the date of expiry or a period from the date of manufacture.

F12 Configuration

Other Options

Honor Expiry Dates usage for Batches If you would like to select the Item having the Batch which is already expired, you have to set this option to No. If you have to restrict selection of expired batches this option is to be set to Yes. Separate Discount column on Invoices To account the Trade discounts, you can enable the option Separate Discount column on Invoices in F11:F2 Inventory features which will calculate the discounts automatically during Invoice entry.

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Use Common Ledger A/c for Item Allocation When you start entering the voucher, Tally.ERP prompts you for the Sales Ledger to be allocated. Any number of stock items or account ledgers can be selected one after another to enable faster data entry. To activate this: 1. Set Use Common Ledger A/c for Item Allocation to Yes in F12: Configure on the invoice entry screen.

2.

Accept the screen to save the voucher.

If you have to allocate different Items to different Sales Ledgers, you have to set the above option to No. Calculate Tax on Current Sub-total To enable automatic calculations of taxes and duties on sub totals: 1. Set Calculate Tax on Current Sub-total to Yes in F12: Configure (Sales Invoice Configuration) on the sales invoice screen

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2.

Accept the screen to save.

Pass a Sales entry as shown:

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In the above scenario, the Duty is calculated after deducting Labour charges from the Item value. Refer Batchwise details and Mfg. and expiry dates for more details on activating batch-wise details and Setting manufacturing date and Expiry dates.

Journal Entry

Journal Vouchers are used to adjust the debit and credit amounts without involving the cash or bank accounts. Hence, they are referred to as adjustment entries.

Creating a Journal Entry

Journal entries are usually used for finalization of accounts.

To pass a Journal Voucher, Go to Gateway of Tally > Accounting Vouchers

Click on F7: Journal on the Button Bar or press F7.

For example, there may be entries made for interest accrued or interest due. If you have to receive Interest from a party, the same can be entered using Journal Voucher.

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1. 2. Debit the Party Credit the Interest Receivable Account

The Journal entry is displayed as shown:

Special Keys for Voucher Narration Field:

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting their Account in your Books of Accounts for the stated reason or vise versa. It is commonly used in case of Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the party etc. Debit Note can be entered in voucher or Invoice mode.

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You need to enable the feature in F11: Accounting or Inventory features.

y y

To use it in Voucher mode you need to enable the feature in F11 :Accounting Features Use Debit / Credit Notes. To make the entry in Invoice mode enable the option F11: Accounting Features - Use invoice mode for Debit Notes.

To go to Debit Note Entry Screen, Go to Gateway of Tally > Accounting Vouchers

Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V. Pass an entry for the goods purchased returned to Supplier A:

Special Keys for Voucher Narration Field:

y y

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Inventory Vouchers

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Inventory Vouchers perform the function in the inventory system that accounting vouchers do in the accounting system. Inventory Vouchers are also means of entering transactions. Accounting vouchers will update only Accounts, but Inventory vouchers will update both Accounts and Inventory. Inventory vouchers record the receipt and issue of goods/stock (Movement of goods), the transfer of stock between locations and physical stock adjustments. If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the Balance Sheet stock figures. The stock balances will be maintained separately. Set the option Integrate Accounts Features/Inventory Features. and Inventory to Yes in F11: Features : F1: Accounting

You can trace a transaction from the beginning i.e., goods transfer stage to the financial accounting stage irrespective of integration status. For example, the purchase of stock can be tracked from the purchase voucher through the receipt note, through invoice from the supplier and also through eventual payment.

Predefined Inventory Vouchers in Tally.ERP 9

Tally.ERP 9 comprises of the following predefined Vouchers, to suit different business requirements for recording various transactions. Tally also allows you to create user-defined Vouchers (Voucher Types) as per your requirements.

y y

Purchase order Sales order

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y y y y y y y y y y y

Job Work Out order Job Work In order Receipt note Delivery note Rejections Out Rejections In Material Out Material In Stock Journal Manufacturing Journal Physical Stock

Receipt Note Voucher (GRN)

This voucher type is used for recording goods received from the supplier. To enter the Receipt Note Voucher, 1. 2. 3. From F11: Inventory Features, Enable the option Use Tracking Numbers (Delivery / Receipt Notes). Go to Gateway of Tally > Inventory Vouchers Press the button Alt+F9 or Select the button F9: Rcpt Note from the button bar. (Receipt Note Configuration) set the option Accept Supplementary

Under F12: Configure Details to Yes.

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For more details on Receipt Note configurations refer Voucher Entry Configuration For example, consider the situation where a company receives Item A from a supplier B, if a Purchase Order exists for that Supplier B, select the Order Number from the List of Orders pop up menu to bring up the order particulars automatically.

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Once you accept the Order details, the cursor will move to the column Name of Item. On pressing Enter, the Item Allocations screen is displayed. You can select existing Tracking number or create a new Tracking Number. Tracking number is the reference to have a link between transactions. For eg: if Tracking Number is selected in the Receipt Note, the details of the items are automatically displayed in the Purchase Invoice.

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The Receipt Note after completion will appear as shown :

Party

s A/c Name

Select the Party Ledger from the List of Ledger Accounts from whom the goods have been received. Name of Item Once you select the Order Number from the List of Orders, the item name will be displayed automatically. Quantity, Rate and Amount Since the Order number is selected from the List of Orders, quantities, rate and amount will be displayed automatically.
For more details on F12 configurations refer Invoice/Order Entry Configuration

Rejections In Voucher (Sales Returns)

A Rejections In Voucher is used to record goods that are rejected and returned by the customer. To enter the Rejections In Voucher, 1. 2. 3. From F11: Inventory Features, Enable the option Use Rejection Inward / outward Notes. Go to Gateway of Tally > Inventory Vouchers Press Ctrl+F6 or select the button F6: Rej. In from the Button Bar

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For example, Customer A returns Item A delivered by the company.

Ledger Account Select the Party s name from the List of Ledger Accounts, from whom the goods have being returned.

Customer s Name and Address Once Party s name is selected under Ledger Account, this column will be automatically populated with address, if provided in the Ledger Master creation screen. Name of Item Select the Item from the List of Stock Items. Press Enter button on the Item, it will display the Item Allocations screen.

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Under the List of Tracking Numbers, the details of Delivery note along with Tracking number will be displayed, select the same. Mention the quantities returned. Narration Give the narration, if required.
No te : In F12 co nfi g u ra ti o n, Sh ow B a tch Wi se D e t a i l s a n d Sh ow God ow n wi se D e ta i l s wi l l sh o w th e ba tch a n d go do wn d e ta i l s i n th e vo u ch er en t ry sc r een , i f s et to Y e s.

Delivery Note Voucher

The Delivery Note Voucher is used for recording goods delivered to a customer. To pass the Delivery Note voucher,
1. From F11: Inventory Features, Enable the option Use Tracking Numbers (Delivery / Receipt Notes).

2. 3.

Go to Gateway of Tally > Inventory Vouchers Press Alt+F8 or select the button F8: Dely Note from the button bar.

Under F12: Configure (Delivery Note Configuration) set Accept Supplementary Details to Yes.

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For more details on Delivery Note configurations refer Voucher Entry Configuration For example, the company delivers goods to Customer A. If a Sales Order exists for that customer, selecting the appropriate Order Number from the List of Orders pop-up menu will automatically bring up the relevant particulars.

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Once you accept the Order details, the cursor will move to Name of Item column. On pressing Enter, the Item Allocations screen is displayed. You may select an existing Tracking number or create a new Tracking Number. Tracking number is the reference to have a link between transactions. For eg: if Tracking Number is selected in the Delivery Note, this will automatically display the details of the items in the Sales Invoice.

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The Delivery Note Voucher after completion will appear as shown :

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Party

s A/c Name

Select the Party Ledger from the List of Ledger Accounts to whom goods are delivered. Name of Item Once we select the Order Number from the List of Orders, the item name will be displayed automatically. Quantity, Rate and Amount Since the Order number is selected from the List of Orders, quantities, rate and amount will be displayed automatically.

Rejections Out Voucher (Purchase Returns)

The Rejections Out Voucher records goods that are rejected and returned to a supplier. To view Rejections Out Voucher:
1. From F11: Inventory Features, Enable the option Use Rejection Inward / outward Notes.

2. 3.

Go to Gateway of Tally > Inventory Vouchers Press Alt+F6 or Select the button F6: Rej. Out from the Button Bar

For example, the company returns Item A received from Supplier A.

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Ledger Account Select the Party s name from the List of Ledger Accounts, to whom you are returning the goods.

Supplier

s Name and Address

Once Party s name is selected under Ledger Account, this column will be filled up automatically with the address, if provided in the Ledger Master creation screen. Name of Item Select the Item from the List of Stock Items. Press Enter on the Item, it will display the Item Allocations screen.

Under the List of Tracking Numbers, the details of Receipt note along with Tracking number will be displayed, Select the same and mention the quantity rejected. Narration Give the narration, if required.
No te : In F 1 2 co n f i gu ra ti o n , Sh o w Ba t ch W i s e D eta i l s a n d Sh o w Go do wn wi s e D eta i l s wi l l sh o w th e ba t ch a n d go d o wn d eta i l s i n th e vo u ch e r en t ry scr e en , i f se t t o Y es .

Material Out

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The Material Out Voucher is used to record the material transfer out. In case of Job Work - Material Out voucher can be used by the Job Worker as well as Principal Company. Principal Company: Can use this Voucher to transfer the Raw Materials to the Job Worker. Job Worker: Can use this voucher to transfer the Finished goods to the Principal Company. This voucher can also be used for any other purpose other than Job Work. To pass the Material Out voucher,

From F11: Inventory Features, Enable the option Use Material In/Out
No te : Th i s o p ti o n wi l l a u to ma ti ca l l y b e se t to Y e s i n ca se Al l o w J ob O rd e r P ro ce s si ng i s en a bl ed i n F 11 : In ve nt or y Fe a t ure s, a s th e Ma te ri a l In/ Out i s a sso ci a t ed wi th Jo b Or d er P ro c essi n g.

y y

Go to Gateway of Tally > Inventory Vouchers. Press Ctrl+J or click on Ctrl+J: Material Out

Party's A/c Name Select the Supplier s (Job Worker) / Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt + C to create a new account.

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The Party Details screen is displayed.

Select the required Order No(s) / option from the List of Orders. Provide the other details as shown above and Save to return to Inventory Voucher Creation screen. Destination Godown Select the required Godown from the List of Godowns.
No te : Sel ec t th e a p p ro p ri a te Go do wn ba s e d o n th e t y pe o f Jo b Or de r. In ca s e th e J ob Wo rk e r i s i ssu i n g th e f i n i sh e d go o ds to th e P ri nci p a l Com p a ny , th e D e sti na ti on G od o wn sh o u l d be s et to N ot Ap p l i ca b l e . In ca s e th e P ri nci p a l Co m p a ny i s i ssu i n g ra w ma t e ri a l s to th e J ob W o rk e r , th e Go do wn en a bl ed wi th Ou r St ock wi t h Thi rd P a rt y i n Go do wn ma st e rs sh o u l d b e sel ec te d.

Name of the Item Select the Stock Item which is issued, from the List of Stock Items. The Item Allocations sub-screen is displayed. Select the Order No, Component of, Godown, Quantity, Rate and Amount as shown:

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No te : Th e Co m p one nt of wi l l a u to ma ti ca l l y di s pl a y t h e P ri m a r y Ite m o f th e s el e ct e d co m po n en t.

y
Narration

Press Enter to return to Inventory Voucher Creation screen.

This field is optional. Enter the required particulars concerning the material transfer.
Press F12 configuration to enable/disable other options as shown:

Material In

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The Material In Voucher is used to record the material transfer in. In case of Job Work - Material In voucher can be used by the Job Worker as well as Principal Manufacturer. Principal Manufacturer: Can use this Voucher to record the receipt of Finished goods/ Scrap/ByProduct/Co-Product from the Job Worker. In this voucher Principal Manufacturer can record the consumption of components used (own consumption like- wax, screw etc.) by the Job Worker Job Worker: Can use the Principal Manufacturer. this voucher to account the receipt of Raw material from

This voucher can also be used for any other purpose other than Job Work. To pass the Material In voucher,

From F11: Inventory Features, Enable the option Use Material In/Out
No te : Th i s o p ti o n wi l l a u to ma ti ca l l y b e se t to Y e s i n ca se Al l o w J ob O rd e r P ro ce s si ng i s en a bl ed i n F 11 : In ve nt or y Fe a t ure s, a s th e Ma te ri a l In/ Out i s a sso ci a t ed wi th Job Ord e r P r oce s si ng .

y y

Go to Gateway of Tally > Inventory Vouchers. Press Ctrl+W or click on Ctrl+W: Material In.

Party's A/c Name Select the Supplier s (Job Worker) / Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt + C to create a new account.

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The Party Details screen is displayed.

Select the required Order No(s) / option from the List of Orders. Provide the other details as shown above and Save to return to Inventory Voucher Creation screen. Destination Godown Select the required Godown from the List of Godowns.
No te : Sel ec t th e a p p ro p ri a te Go do wn ba s e d o n th e t y pe o f Jo b Or de r. In ca s e th e J ob Wo rk e r i s r ec ei vi n g th e ra w ma t eri a l f ro m th e P ri n ci p a l Ma n u f a ctu r er , th e D e sti na ti on G od o wn sh o u l d be s et to N ot Ap p l i ca b l e . In ca s e th e P ri nci p a l Ma n ufa c tu re r i s r ec ei vi n g th e f i n i sh ed go o ds f ro m th e J ob Wo rk e r, th e Go do wn en a bl ed wi th Ou r Sto ck wi th Th i rd P a rt y s h o u l d b e s el e ct ed f o r C o n su m pti o n Go do wn . Th e S ou r ce G od o wn i n Ma te ri a l In i s di spl a y e d a s C on sum p ti on God o wn wh en th e P ri n ci p a l Ma n ufa ctu re r r ec ei v es th e f i n i sh e d g o o ds f ro m th e J ob W ork e r u si n g Go do wn en a bl e d wi th Ou r St ock wi th Thi rd P a rt y a n d co n f i gu r ed to Al l o w Co ns um p ti on i n Ma te ri a l In vo u ch e r t yp e .

Name of the Item Select the Stock Item which is received Allocations sub-screen is displayed. / issued, from the List of Stock Items. The Item

In case the finished goods/scrap is received from a Job Worker, the Item Allocation for the selected item is displayed as follows:

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Consider as Primary Item Set this option to Yes, in case the selected item is the Primary Item for which the consumption has to take place. BoM Name Tally.ERP 9 will list the BoM created for the selected item in the List of BoM. Select the required BoM. Consider as Scrap Set this option to Yes, in case the selected item is a Scrap Item.
No te : Th i s o p ti o n wi l l s ki p wh en C on si d e r a s P ri m a r y Ite m i s se t to Y e s .

Select the Godown, Quantity, Rate and Amount as shown:

No te : W h en P ri m a r y Ite m i s s el e ct ed th e C om p one nt o f wi l l be se t to N ot Ap p l i ca b l e a n d wh en th e Sc ra p Ite m i s s el e ct ed th e Com p one nt of wi l l sel ect th e P ri m a r y I te m . Th e God ow n s el ect e d i n th e Ite m Al l oca ti o n sh o u l d n o t b e en a bl ed wi th o pti o n s Ou r Sto ck wi th T hi rd P a r ty a n d T hi rd P a rty Sto ck wi th us i n Go do wn ma s te rs .

y
Narration

Press Enter to return to Inventory Voucher Creation screen.

This field is optional. Enter the required particulars concerning the material transfer.

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Press F12 configuration to enable/disable other options as shown:

Stock Journal Voucher

Stock Journal is a Journal in which all types of Stock Adjustments are entered. The stock adjustment may be due to:

Inter-Godown Transfer
This is useful to transfer the goods from one location to another. The quantity of Stock remains the same, but the Location changes. Additional Cost/Expenses involved in the Transfer of goods. You can also account the additional cost incurred in connection of transfer of materials from one location to another. Accounting for Wastage of stock or shortage of stock There may be a shortage or wastage of stock items, the quantity may have got changes. In such cases, you have to enter a stock journal to account for the increase or decrease in the Stock Item.

Manufacturing Process
If you are involved in the manufacturing process in which raw materials are consumed and finished goods are produced, then you can create a manufacturing Journal Voucher also. To view the Stock Journal Voucher: Go to Gateway of Tally > Inventory Vouchers 1. Press the buttons Alt + F7 or Select the button F7: Stk Jrnl from the Button Bar

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For example, the company transfers Item B from the warehouse to the shop.
No te : To g e t th e Go do wn d eta i l s en a bl e th e f ea tu re M a i nta i n M ul ti p l e God ow ns i n F11 : Fe a tu re s : F 2: I nve n to ry Fe a tu re s .

Date Enter the Date of Stock Journal entry. Ref Enter the reference number, if any, or leave it blank.
No te : To g e t th e r ef er en c e co l u mn i n th e S to c k Jo u rn a l , i n F12 : C on fi g ura ti on sc r een se t Y e s to U se Re f . N um b e r i n S to ck J ou rna l .

Following are the two parts of a Stock Journal voucher:

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Source (Consumption)
Name of Item Select the name of the Item from the Godown Select the Godown from the List of Godowns, from which goods are getting transferred. Quantity, Rate and Amount Enter the quantity of the items that is getting transferred and rate, amount will popup automatically.
No te : Th e ra te th a t i s ca p tu r e d h e re i s o b ta i n e d f r o m th e Go do wn su mma ry .

List of Items

, which needs to be transferred under

Source

Destination (Production)

Name of Item Select the name of the Item from the List of Items under the column Destination. Godown Select the Godown from the List of Godowns, to which goods are being transferred. Quantity, Rate and Amount Enter the quantity of the items that is being transferred. The rate and amount will be displayed automatically.
No te : Yo u ca n h a v e a di f f e r en t R a t e f o r So u rc e (C o n s u mpti o n ) a n d f o r D es ti n a ti o n (P ro du cti o n ) co l u mn f o r th e sa me Sto ck It e m.

When there are some Additional Cost/Expenses incurred, then you can account the same in the Stock Journal. After mentioning the quantity, rate and amount under Destination (Production), the Details screen will be displayed. Enter the additional cost/expense incurred. Additional Cost

No te : To g e t th e a d di ti o n a l co s t d e ta i l s i n th e Sto ck J ou rn a l vo u ch er , en a bl e Tra ck a d d i ti ona l c os ts of P u rc ha se i n F 11 : Fe a t ure s : F2 : Inve nt o ry Fe a tu re s .

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Narration Enter the narration, if required.

Printing Stock Transfer

Select the option Destination Godown on Top of Voucher in Printing Configuration While printing Stock Transfer Voucher

Manufacturing Journal Voucher

Go to Gateway of Tally > Inventory Vouchers > Alt +F7 > select Manufacturing Journal For more information on creating Manufacturing Voucher type refer Creating Manufacturing Journal.

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Name of Product Select the product which needs to be manufactured from the List of Items. The Item selected in Name of Item field will be the primary Item which will be manufactured using different components.
BOM Name

Select the Bill of Material if you want the components utilised to manufacture the finished goods to be displayed automatically.
No te : If B O M i s s el ect e d th e Com p one nt s u s ed f o r t h e ma n u f a c tu r e o f f i n i sh ed go o ds & th e B y- P r od u ct s/ C o- P rod uct s o r S cra p pr o du c e d du ri n g ma n u f a c tu ri n g wi l l b e d ef a u l t ed .

For more details on creating BOM & recording Manufacturing Journal using BOM refer the topic Creating Bill of Materials for a Stock Item Godown Select the godown where you would like to place the produced goods. Quantity Enter the quantity to be produced. % of Cost Allocation This field displays the Percentage of Cost of Allocation to the Primary Item manufactured.

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No te : In a ma n u f a ctu ri n g p ro c es s i f th er e a re n o b y-P rodu c ts /co - pr o du c ts o r s cra p p ro du c ed th en th e % of C o st o f Al l o ca ti o n to P ri m a ry I te m wi l l 100 %. If th er e a r e a n y b y- p rod uc ts / Co- p r od uc ts or sc ra p i s ma n u f a ctu re d th en th e % of C o st of Al l o ca ti on t o p ri ma r y i t em wi l l b e T ota l C o st - Co st a l l o ca te d to B y P r od u ct s / Co P rod uct s /Sc ra p .

Batch Name, Mfg Date, Expiry If the item to be manufactured in batches then enter the Batch Name, Manufacturing Date and Expiry Date.

Components (Consumption) The list of Sub-Component items which will be used to produce the finished goods, need to be selected here. 1. 2. Name of Item: In this field select the components used for the manufacture of finished goods. Godown: In this field select the Godown from where the components are consumed for production. Quantity: In this field mention the Quantity of Raw materials required to manufacture the finished goods. Rate: In this field mention the rate (purchase cost) of the raw materials used in the manufacture of finished goods Amount: In this filed the Amount will be calculated automatically based on Quantity & Rate of item

3.

4.

5.

Co-Products/ By-Products /Scrap The list of By-products/ Co-products or Scrap produced during the manufacture of finished goods need to be selected here 1. Name of Item: In this field select the By-product/Co-product/Scrap name which is produced in the process of manufacture of finished goods Godown: Select the godown where the By-product/Co-product/Scrap produced will be stored % of Cost Allocation: In this field specify the % of cost of allocation to be made towards the By-product/Co-product/Scrap produced Quantity: In this field mention the Quantity of By-product/Co-product/Scrap produced Rate: This is the rate of producing of By-product/Co-product/Scrap. (Rate = Amount/Quantity) Rate will be displayed automatically Amount: Amount will be displayed automatically based on the % of Cost Allocation defined for the By-product/Co-product/Scrap produced. Tally.ERP 9 calculates the % of Cost Allocation on Effective Cost In the above Example: Amount of By-Product 1(5,050) = 20,20,000 (Effective Cost) X 0.25\100 (% of Cost Allocation) Cost of Components This field displays the total cost of the components (raw materials) used in the manufacture of finished goods.

2. 3.

4. 5.

6.

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Type of Addl. Cost Enter the additional cost incurred for manufacturing the finished goods, if any. Total Addl. Cost The total of all additional cost will be displayed here. Effective Cost The Effective cost is total of Cost of Components (Consumption) + Additional Cost incurred to manufacture the finished goods & Co-Product/By-product or Scrap In the above example: 20,00,000 + 20,000 = 20,20,000 is incurred manufacture Item B (Primary Item), By-Product 1 & Scrap Allocation to Primary Item The cost allocated to manufacture the Primary Item will be displayed in this field. Allocation to Primary Item = Effective Cost - Total cost of Co-products/By-Products/Scrap Effective Rate of Primary Item This is the rate of the Primary Item Manufactured (finished item). In the above example: 20,08,890 / 2000 (number of Item B produced) = 1004.45/nos.

Manufacture of Finished Goods without By-Product/Co-Product/Scrap

In some manufacturing processes only finished goods will be produced without By-product/Coproduct/scrap. In those cases users may not need the provision to move to By-Product/Co-product/scrap section. You can configure the movement of cursor to By-Product/Co-product/scrap section. In case, where you don't have By-Product/Co-product/scrap details to skip the movement of cursor to that section In F12: Configure (Stock Journal Configuration)

Set the option Skip Co-Product/By-Product/Scrap Stock Item to Yes

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No te : W h en th e o p ti o n Sk i p C o- P rod uct /B y- P r od u c t/S c ra p St ock Ite m i s ba n d th e u s e r i s re co r di n g a Ma n ufa ctu ri ng J ou rna l f o r a st ock i t e m f o r wh i ch th e B O M i s cr ea t e d b y ca ptu ri n g th e de ta i l s o f B y - P r od uc t/ C o- P r od u ct / Scra p ; th en Ta l l y .E R P 9 wi l l i gn o r e th e co n f i gu ra ti o n a n d wi l l ca ptu r e th e d eta i l s o f By - P ro du ct/ C o - P ro du c t/ S cra p. It wi l l a l so a l l o w to mo di f y th e d eta i l s i n By- P ro du ct / C o - P rodu c t/ S cra p s ec ti o n .

Transfer Journal Voucher

Tally.ERP 9 allows you to transfer materials from one Godown to another. The transfer of materials is done using the Transfer Journal Voucher. To create Stock Journal for Inter-Godown Transfers, Go to Gateway of Tally > Inventory vouchers > Alt+F7 for Stock Journal and select the class.

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Pass the stock transfer entry.

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Printing Stock Transfer Voucher
Press Alt+P to print the Stock Transfer Journal Voucher

F12 Print Configuration

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While printing Stock Transfer Voucher, Select the option Destination Godown on Top of Voucher in Stock Journal Printing Setup, the Destination Godown is printed on Top of Voucher instead of separate rows.

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Additional Information Refer Voucher Classes for Stock Journals in Job Costing for more details.

Physical Stock Voucher

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Physical Stock Voucher is used for recording the actual stock which is verified or counted. It could happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds a discrepancy between actual stock and computer stock figure. Physical vouchers will be useful for recording purposes only if you have configured inventory vouchers to ignore physical stock differences. If you have configured the vouchers so that physical stock difference is not ignored, then all transactions subsequent to the physical stock voucher will use the balance as mentioned in that voucher To view the Physical Stock Voucher, Go to Gateway of Tally > Inventory Vouchers 1. Select the button F10: Phys Stk from Button Bar or press Alt+F10.

Date Enter the stock taking date. Name of Item Select the name of the item from the List of items, for which physical stocks need to be recorded. Godowns Select the Godown (Godown will appear only if, Maintain multiple Godowns is activated in F11:Features :F2:Inventory Features), in which the Physical Stock taking was conducted.

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Batch / Lot No Select the Batch number (Batch details will appear only if, Batch wise details are activated in the Stock Item Master screen) for which the Physical Stock quantity is to be recorded. Quantity Enter the Physical Stock quantity
No te : P hy si ca l St ock q ua nti ty wi l l be di s pl a y ed a s Actu a l S to c k i n th e S to c k Su mma ry f ro m th e da t e o f en tr y o f th e P h ysi ca l S to c k.

Optional and Non Accounting Vouchers in Tally.ERP 9

The Non Accounting/Unconventional Vouchers are the special vouchers that are used to record provisional or non-accounting transactions. Unconventional vouchers are mainly used to exclude unnecessary entries or provisional entries from the books of accounts and make them available for what if (future reports, projections, forecasts etc.) reports required at any given time.

Predefined Non Accounting Vouchers in Tally.ERP 9

Tally.ERP 9 comprises of the following predefined Non-Accounting Vouchers, to suit different business requirements for recording various transactions. Tally.ERP 9 also allows you to create user-defined Vouchers (Voucher Types) as per your requirements. The pre-defined Non Accounting Vouchers are:

y y

Memorandum Voucher Reversing Journal types, there are two options available namely Post

Along with the above mentioned voucher Dated and Optional for other voucher types.

Memorandum Voucher

This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts. In other words, Tally.ERP 9 does not post these entries to ledgers, but stores them in a separate Memorandum Register. You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the entry into your books.

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Some of the uses of Memorandum Vouchers are:

Making suspense payments

Consider that a company gives its employees cash to buy office supplies, the exact nature and cost of which are unknown. For this transaction you can enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash. However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when the details are known. Consider the following Example: The Company pays its employee Rs. 1000 as petty cash advance for Office Expenses. The following entry has to be passed.
To use Memorandum voucher, Enable the following option from F11: Accounting Features

Use Reversing Journals & Optional Vouchers

Go to Gateway of Tally > Accounting Vouchers > Select Ctrl+F10: Memos from the Button Bar or click Ctrl+F10. 1. 2. Debit Office Supplies Account Credit Cash Account

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Vouchers not verified at the time of entry If there is no clarity with the details of a voucher you are entering, you can enter it as a Memo voucher and amend it later when the details are available. Items given for approval Generally completed sales are entered into books. In case items are given on approval, use a Memo voucher to track and convert it into a proper Sales voucher. You can cancel/delete the memo voucher if the sale is not made.

Memorandum Voucher Register

To view all the memorandum vouchers: Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers.
No te : Yo u ca n a l so vi e w m e mo ra n du m vo u ch er s f ro m th e D a y Bo o k .

You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into your books. Use Scenarios to see the effect of Memo entries on reports and statements.

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