Tally ERP/ Tally Prime- GST

Tally ERP: A Comprehensive Guide to Simplify Business Operations

Introduction
Learn Tally Erp and Tally prime- In today’s fast-paced business environment, managing accounts, inventory, and compliance can be daunting. Enter Tally ERP, a revolutionary software solution designed to streamline business operations and improve efficiency. Whether you run a small business or a large enterprise, Tally ERP offers powerful features to manage your financial and business needs effectively.

What is Tally ERP?

Tally ERP (Enterprise Resource Planning) is an accounting and business management software widely used by businesses worldwide. Developed by Tally Solutions Pvt. Ltd., this software caters to diverse business needs, from accounting and inventory management to tax compliance and payroll processing. Its user-friendly interface and robust features make it a preferred choice for businesses of all sizes.

Tally ERP/ Tally Prime

Key Features of Tally ERP

1. Accounting Management

Tally ERP simplifies bookkeeping by providing tools for managing ledgers, vouchers, and financial statements. It supports real-time tracking and ensures error-free calculations.

2. Inventory Management

With Tally ERP, you can track stock levels, categorize items, and manage warehouse locations. It helps maintain optimum inventory levels and prevents overstocking or understocking.

3. GST Compliance

Tally ERP is fully compliant with Goods and Services Tax (GST) regulations, enabling businesses to file GST returns and generate GST-compliant invoices effortlessly.

4. Payroll Management

Automate salary processing, tax deductions, and employee benefits calculations. Tally ERP also helps manage attendance and employee records efficiently.

5. Multi-Currency Support

For businesses dealing in international markets, Tally ERP provides multi-currency support to manage forex transactions seamlessly.

6. Data Security

Tally ERP ensures that your financial data remains secure with advanced encryption and backup options. You can also set user access levels for enhanced control.

7. Customizable Reports

Generate customizable financial and operational reports that provide actionable insights into your business performance.

Benefits of Using Tally ERP

  1. Enhanced Efficiency: Automates repetitive tasks, saving time and reducing manual errors.
  2. Scalability: Suitable for businesses of all sizes, Tally ERP can grow with your needs.
  3. Cost-Effective: Eliminates the need for multiple software by integrating various functions in a single platform.
  4. Regulatory Compliance: Ensures that your business adheres to tax laws and other regulations without hassle.

How to Create a Ledger in Tally ERP

1. Navigate to the Ledger Creation Screen

  • From the Gateway of Tally, go to:
    Accounts Info > Ledgers > Create

2. Enter the Details

  • Name: Enter the name of the ledger (e.g., “Sales Account” or “Cash in Hand”).
  • Under: Select the appropriate group for the ledger (e.g., “Sales” or “Bank Accounts”).
  • Opening Balance (if applicable): Enter the balance as of the start date of your financial year.

3. Save the Ledger

  • Press Ctrl+A to save the ledger.

How to Create a Group in Tally ERP

Groups in Tally categorize ledgers for better organization. Here’s how to create a group:

1. Navigate to the Group Creation Screen

  • From the Gateway of Tally, go to:
    Accounts Info > Groups > Create

2. Enter the Group Details

  • Name: Enter the name of the group (e.g., “Fixed Assets” or “Direct Income”).
  • Under: Choose the parent group to categorize your new group (e.g., “Assets” for Fixed Assets or “Income” for Direct Income).

3. Specify the Group Behavior

  • Choose whether the group will affect net profit (used for income or expense groups) or not (used for assets or liabilities).

4. Save the Group

  • Press Ctrl+A to save the group.
Tally ERP/ Tally Prime

Steps to Create a Stock Item in Tally ERP

1. Enable Inventory Features
Before creating stock, ensure that inventory features are enabled:

  • Go to Gateway of Tally > F11: Features > Inventory Features.
  • Enable options like Integrate Accounts and Inventory (if needed) and Use Stock Items.

2. Navigate to Stock Item Creation
From the Gateway of Tally, go to:
Inventory Info > Stock Items > Create

3. Enter the Stock Item Details
Here are the fields you’ll need to fill in:

  • Name: Enter the name of the stock item (e.g., “Mobile Phone” or “LED Bulb”).
  • Under Group: Select the appropriate stock group for categorization (e.g., “Electronics” or “Lighting”).
  • Units of Measure: Choose the unit for measuring the stock (e.g., “Pieces,” “Kilograms,” etc.). You can create a unit if it doesn’t exist under Inventory Info > Units of Measure > Create.
  • GST Details (if applicable): Specify GST rates or HSN code for tax compliance.
  • Opening Balance: If you have opening stock, enter the quantity and value.

4. Save the Stock Item
Press Ctrl+A to save the stock item.

Additional Features While Creating Stock Items

  • Batch Details: If your business tracks inventory by batches (e.g., for expiry dates), enable Batch-Wise Details under inventory features.
  • Godown/Location: If you store inventory in multiple locations, assign the stock item to a godown.
  • Rate of Stock: Add default purchase and sale prices for consistency during transactions.
  • Bill of Materials (BOM): For manufacturing businesses, define the components used to produce the stock item.

How to Create a Stock Group

Stock groups help categorize similar items for better management. Here’s how to create one:

  1. Navigate to:
    Inventory Info > Stock Groups > Create
  2. Enter the Group Name and select Under Group (e.g., “Primary” if it’s a top-level group).
  3. Specify whether the group is for stock items or services.
  4. Save using Ctrl+A.

How to Manage Stock in Tally ERP

  • Stock Summary: Access detailed reports under Gateway of Tally > Stock Summary to monitor inventory levels.
  • Reorder Levels: Set reorder levels to avoid stockouts or overstocking.
  • Godown Management: Track inventory movement between storage locations.

Passing entries for Sales, Purchase, Payment, Receipt, and Contra transactions in Tally ERP is crucial for accurate accounting. Here’s a step-by-step guide for each type of entry:

1. Sales Entry

Purpose: Record sales of goods or services.

Steps:

  1. Go to: Gateway of Tally > Accounting Vouchers > F8: Sales
  2. Enter the following details:
    • Party A/C Name: Select the customer or debtor account.
    • Sales Ledger: Choose the relevant sales ledger (e.g., Local Sales, Export Sales).
    • Inventory Details: If inventory is enabled, select the stock item and enter quantity, rate, and amount.
    • GST Details: Ensure applicable GST is selected if enabled.
  3. Verify and press Ctrl+A to save.

2. Purchase Entry

Purpose: Record purchases of goods or services.

Steps:

  1. Go to: Gateway of Tally > Accounting Vouchers > F9: Purchase
  2. Enter the following details:
    • Party A/C Name: Select the supplier or creditor account.
    • Purchase Ledger: Choose the relevant purchase ledger (e.g., Local Purchase, Import Purchase).
    • Inventory Details: Select the stock item, quantity, rate, and amount.
    • GST Details: Ensure applicable GST is selected if enabled.
  3. Verify and press Ctrl+A to save.

3. Payment Entry

Purpose: Record payments made to suppliers, creditors, or expenses.

Steps:

  1. Go to: Gateway of Tally > Accounting Vouchers > F5: Payment
  2. Enter the following details:
    • Bank/Cash Ledger: Select the ledger from which payment is made (e.g., Bank A/C, Cash A/C).
    • Party/Expense Ledger: Select the account to which payment is made (e.g., Creditor, Rent Ledger).
    • Amount: Enter the payment amount.
    • Mode of Payment: Add cheque or bank transfer details if needed.
  3. Verify and press Ctrl+A to save.

4. Receipt Entry

Purpose: Record receipts from customers, debtors, or other income sources.

Steps:

  1. Go to: Gateway of Tally > Accounting Vouchers > F6: Receipt
  2. Enter the following details:
    • Bank/Cash Ledger: Select the ledger where the money is received (e.g., Bank A/C, Cash A/C).
    • Party/Income Ledger: Select the account from which money is received (e.g., Debtor, Commission Income).
    • Amount: Enter the receipt amount.
    • Mode of Receipt: Add cheque or bank transfer details if needed.
  3. Verify and press Ctrl+A to save.

5. Contra Entry

Purpose: Record internal transactions like cash deposits, withdrawals, or transfers between bank accounts.

Steps:

  1. Go to: Gateway of Tally > Accounting Vouchers > F4: Contra
  2. Enter the following details based on the transaction type:
    • Cash Deposit in Bank:
      • Credit: Cash Ledger
      • Debit: Bank Ledger
    • Cash Withdrawal from Bank:
      • Credit: Bank Ledger
      • Debit: Cash Ledger
    • Bank-to-Bank Transfer:
      • Credit: Source Bank
      • Debit: Destination Bank
  3. Enter the amount and any reference details like cheque number.
  4. Verify and press Ctrl+A to save.

Tips for Accurate Entry:

  1. Set GST Correctly: If GST is applicable, ensure the correct tax rates and ledgers are used.
  2. Verify Party Ledgers: Ensure all customer and supplier details are updated in their respective ledgers.
  3. Attach Supporting Documents: Use the Attach File feature in Tally for receipts, invoices, or payment proofs.
  4. Review Reports Regularly: Check sales, purchase, and cash/bank summaries for discrepancies.

Creating Automated GST Invoices in Tally ERP

1. Enable GST in Tally ERP

  1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.
  2. Set Enable Goods and Services Tax (GST): Yes.
  3. Enter GST details for your business:
    • GST Registration Number
    • State and applicable GST rates (CGST, SGST, IGST).

2. Set Up GST for Ledgers

  • Sales Ledger:

    • Go to Accounts Info > Ledgers > Alter/Create.
    • Select your Sales ledger (e.g., Local Sales).
    • Enable Is GST Applicable? Yes and set the GST rates.

  • Purchase Ledger: Repeat the process for purchase accounts.

  • Customer and Supplier Ledgers:

    • Add GST registration numbers for customers and suppliers under their respective ledgers.

3. Create an Invoice with GST

  1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
  2. Enter details:
    • Party A/C Name: Select the customer.
    • Sales Ledger: Choose the appropriate GST-enabled sales ledger.
    • Inventory Details: Add stock items and specify quantities, rates, and applicable GST rates.
    • GST calculations will appear automatically.
  3. Save using Ctrl+A.

4. Print GST Invoice

  1. After saving the invoice, press Alt+P to print.
  2. Choose Print GST Invoice to include GST details like HSN codes, GSTINs, and tax breakdowns.

Bank Reconciliation in Tally ERP

1. Enable Bank Reconciliation

  1. Ensure the relevant Bank Ledger is created:
    • Go to Accounts Info > Ledgers > Create.
    • Create or alter the bank ledger and provide bank details like account number, IFSC code, and branch name.

2. Access the Bank Reconciliation Screen

  1. Go to Gateway of Tally > Display > Accounts Books > Cash/Bank Book > Select Bank Ledger.
  2. Press F5: Reconcile to open the reconciliation screen.

3. Match Transactions

  1. Compare transactions in Tally with your bank statement.
  2. For each transaction:
    • Enter the Bank Date (date when the transaction appears in the bank statement).
    • Mark as reconciled.

4. Unmatched Entries

  • Review unreconciled entries to identify discrepancies.
  • Add missing transactions or correct errors as necessary.

5. Generate Reconciliation Report

  1. Go to Gateway of Tally > Display > Bank Reconciliation.
  2. Select the bank ledger and review the reconciliation report.

Tips for Automation and Accuracy

  • Use E-Way Bill Integration (if applicable): Generate e-way bills directly from Tally for GST-compliant invoices.
  • Import Bank Statements: For efficient reconciliation, import bank statements in formats like CSV or Excel (if supported by your bank).
  • Review GST Reports:
    • Go to Gateway of Tally > Display > Statutory Reports > GST Reports to file returns like GSTR-1, GSTR-3B, etc.

Tally Prime: Your Complete Guide for Efficient Business Management

Tally Prime is a modern, user-friendly, and advanced business management software designed to streamline accounting, inventory, GST compliance, and much more. This guide will walk you through essential operations in Tally Prime, including creating ledgers, managing inventory, recording transactions, and automating GST invoices.

1. How to Create Ledgers and Groups in Tally Prime

Creating a Ledger

  1. Go to Gateway of Tally > Create > Ledger.
  2. Enter details:
    • Name: Provide a unique name for the ledger (e.g., “Sales Account”).
    • Group: Assign the ledger to the appropriate group (e.g., “Sundry Debtors” or “Bank Accounts”).
    • GST Details: If GST is applicable, enable GST and specify the rate.
  3. Press Ctrl+Enter to save the ledger.

Creating a Group

  1. Navigate to Gateway of Tally > Create > Group.
  2. Enter details:
    • Group Name: Specify the name (e.g., “Fixed Assets”).
    • Parent Group: Choose the primary group (e.g., “Assets”).
  3. Save the group with Ctrl+Enter.

2. How to Create Stock in Tally Prime

Stock Item Creation

  1. Go to Gateway of Tally > Create > Stock Item.
  2. Enter the following details:
    • Name: Provide the stock item’s name (e.g., “Mobile Phones”).
    • Stock Group: Select or create the group the item belongs to.
    • Unit of Measure: Assign a unit (e.g., “Pieces” or “Kilograms”).
    • GST Details: Specify the applicable GST rate or HSN code.
    • Opening Balance: Add quantity and value if applicable.
  3. Save the stock item.

Creating a Stock Group

  1. Go to Gateway of Tally > Create > Stock Group.
  2. Specify the group name and parent group.
  3. Save the group with Ctrl+Enter.

3. Passing Voucher Entries in Tally Prime

Sales Entry

  1. Go to Gateway of Tally > Vouchers > F8: Sales.
  2. Fill in the details:
    • Party A/C Name: Select the customer.
    • Sales Ledger: Choose the appropriate sales ledger.
    • Stock Details: Add stock item, quantity, and price.
    • GST will be calculated automatically.
  3. Save the entry.

Purchase Entry

  1. Go to Gateway of Tally > Vouchers > F9: Purchase.
  2. Fill in similar details as for sales, selecting the supplier and purchase ledger.
  3. Save the entry.

Payment Entry

  1. Go to Gateway of Tally > Vouchers > F5: Payment.
  2. Select the bank or cash ledger and the party/expense ledger.
  3. Enter the amount and details.
  4. Save the entry.

Receipt Entry

  1. Go to Gateway of Tally > Vouchers > F6: Receipt.
  2. Choose the bank or cash ledger and the debtor/income ledger.
  3. Enter the amount and receipt mode.
  4. Save the entry.

Contra Entry

  1. Go to Gateway of Tally > Vouchers > F4: Contra.
  2. Record internal transactions like bank-to-bank transfers or cash deposits.
  3. Enter the amount, source, and destination accounts.
  4. Save the entry.

4. Creating GST Invoices in Tally Prime

Enable GST

  1. Go to Gateway of Tally > Features > Statutory & Taxation.
  2. Enable GST and provide GST registration details, including GSTIN and state.

Set GST for Ledgers and Stock Items

  • Assign GST rates to sales, purchase, and stock item ledgers.

Generate GST Invoice

  1. Go to Gateway of Tally > Vouchers > F8: Sales.
  2. Enter customer details, item details, and GST rates.
  3. Save and press Alt+P to print a GST-compliant invoice with HSN codes, tax breakdowns, and customer GSTIN.

5. Bank Reconciliation in Tally Prime

Setup Bank Ledger

  1. Create or alter a bank ledger:
    • Go to Gateway of Tally > Create > Ledger.
    • Enter bank details such as account number and IFSC code.

Reconcile Bank Statements

  1. Go to Gateway of Tally > Banking > Bank Reconciliation.
  2. Select the bank account to reconcile.
  3. Match Tally transactions with your bank statement:
    • Enter the Bank Date for each matched transaction.
    • Mark unmatched transactions for further review.

Tips for Success in Tally Prime

  1. Use Shortcuts: Tally Prime has intuitive shortcuts for faster navigation (e.g., Alt+G for “Go To”).
  2. Customize Invoice Formats: Use the configuration options under Printing to add or remove details on invoices.
  3. Check Reports Regularly:
    • GST Reports: Go to Gateway of Tally > Reports > GST Reports to file GSTR-1, GSTR-3B, and other returns.
    • Banking Reports: Review reconciled transactions to detect discrepancies.
  4. Automation: Automate frequently used entries using the Recurring Vouchers feature.

Tally ERP & Tally Prime Quiz

Instructions

  • Choose the correct answer for multiple-choice questions.
  • Indicate whether the statement is true or false for the True/False questions.
  • Good luck!

Multiple-Choice Questions

1. What is the default method of creating a new company in Tally?
a) Tally → Company Creation
b) Create New Company Wizard
c) Company Info → Create
d) Company Setup

2. In Tally, which option is used to record a journal entry?
a) Gateway of Tally → Accounting Vouchers
b) Gateway of Tally → Inventory Vouchers
c) Gateway of Tally → Payroll Vouchers
d) Gateway of Tally → Display

3. Which report in Tally shows the overall financial health of the company, including profit and loss?
a) Trial Balance
b) Balance Sheet
c) Profit and Loss Account
d) Cash Flow

4. What is the shortcut key to display the “Day Book” in Tally?
a) Alt + D
b) Alt + F3
c) Alt + F5
d) Ctrl + D

5. In Tally Prime, which feature allows the user to view multiple reports at the same time?
a) Split Screen
b) Multi View
c) Multi-Report Mode
d) Report Viewer

6. Tally ERP 9 has which of the following types of vouchers?
a) Accounting Vouchers
b) Inventory Vouchers
c) Payroll Vouchers
d) All of the above

7. Which option in Tally is used to enable GST in the company’s configuration?
a) F11: Features
b) F12: Configuration
c) F1: Help
d) F10: Statutory Reports

8. Tally Prime introduced which of the following for enhanced user experience?
a) Multi-user Mode
b) Enhanced Invoice Customization
c) Statutory Reports
d) TallyVault

9. In Tally ERP 9, which key is used to change the mode of voucher entry from single entry to double entry?
a) F5
b) F6
c) F7
d) F8

10. What is the maximum number of companies you can create in Tally ERP 9?
a) 5
b) 50
c) 100
d) Unlimited

True/False Questions

11. Tally Prime allows users to customize reports based on specific requirements.
(True / False)

12. In Tally ERP, you can only maintain a single company at a time.
(True / False)

13. Tally ERP 9 supports multi-currency transactions.
(True / False)

14. Tally Prime allows users to generate GST-compliant invoices and reports.
(True / False)

15. You cannot import/export data between Tally ERP 9 and Tally Prime.
(True / False)

Answer Key

Multiple-Choice Answers:

  1. c) Company Info → Create
  2. a) Gateway of Tally → Accounting Vouchers
  3. b) Balance Sheet
  4. b) Alt + F3
  5. a) Split Screen
  6. d) All of the above
  7. a) F11: Features
  8. b) Enhanced Invoice Customization
  9. c) F7
  10. d) Unlimited

True/False Answers:
11. True
12. False
13. True
14. True
15. False

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