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Tally 9 Tutorial

Need for Accounting 
Tally 9 Tutorial, learn tally by abcsa online tutorial
learn tally
Accounting is the language of business. It is the art of recording classifying and summarising in a significant manner and in terms of money, transactions and events which are in part at least of a Financial Character and interpreting the result thereof. In simple terms accounting means :-
a) Recording
b) Classifying
c) Summarizing all the transactions which take place in the day to day business.

This is done for a particular period of 12 months called a 'Financial Year'. It generally starts on 1st April and ends on 31st March.
All the information of this period taken for Interpreting Financial events is helpful for decision making.

A person running a business needs to know his :-
1) Assets [What he owns].
2) Liabilities [What he owes].
3) Profit or Loss.
4) Accordingly the future planning.
In short accounting means recording the transactions. So what is transaction?

Transaction is an event, which definitely affects the financial position of the business. Hence, to become a transaction the event must fulfil the condition of making some change in the expenditure, income ownings and owings. The event taking place must make effect on profit or loss of the business. Merely placing of an order or just an enquiry is not a transaction.

Transactions are of two types
1. Transactions
2. Cash Credit

Types of Accounts

1. Personal - [Account dealing with an individual, companies Institutions etc.]
2. Impersonal
a. Real
i. Tangible - which can be touched, felt and measured] e.g. Cash, building, furniture, stock etc.
ii. Intangible - which cannot be, measured, felt in terms of money e.g. goodwill, Patent etc
b. Nominal - It deals with the expenses, losses, incomes and gains e.g. rent, salary etc.

Some Important Terms.
1. Capital account: Handle investments or owner’s account. It has a subgroup.
(A) Reserves and surplus: All reserves accounts like general reserves, capital reserves etc. 
2. Current assets: These assets are divided in 6 sub groups as follows
(A) Bank accounts: Holds bank transactions that means current accounts, savings 
accounts, etc. 
(B) Cash in hand: All cash track in ledger.
(C) Deposits (assets): Fixed deposits, security deposits made by company. 
(D) Loan and Advances (assets): If the company gives any loan or advanced to other. 
(E) Stock in hand: Keep records of opening or closing stock of the material. 
(F) Sundry debtors: This maintains the list of all companies or persons to whom company 
gives material on credit. 
3. Current Liabilities: It keeps track of outstanding liabilities or statutory liabilities. 
(A) Duties and Taxes: All taxes and duties that are paid by company like Trade  duties, Excise, Local Sales Tax etc., are recorded under duties and taxes. 
(B) Provisions: It maintains records of all financial arrangement for possible  future requirements. 
(C) Sundry Creditors: Company purchase material or any other things on credit. 

Then the list of all companies or persons is under sundry creditors to whom company purchased material.

4. Fixed Assets: Handle accounts of all assets like machinery, buildings, etc. 
5. Investments: It keep records of overall investment like shares, Govt. securities, Deposits etc. 
6. Loans(liability): It keeps an account of the loans taken by company and has following three subgroup:
(A) Bank OD Accounts: Keep all overdraft accounts. 
(B) Secured Loans: Keep track of loans taken by the company securities against the 
fixed assets. 
(C) Unsecured Loans: Unconditional loan obtained from Partners/ Directors or other 
7. Suspense Account: This account is used to enter the transactions whose details are not to be finalized. 
8. Branch / Divisions: All the names of branches, divisions and subsidiaries of the company. 
9. Miscellaneous Expenses: Under this group all expenses are entered. 
Following group affect Manufacturing, Trading and Profit and loss accounts:
10.   Purchase account: It is used to maintain records of all purchase account. 
11.   Sales account: It keeps record of all sales. 
12.   Direct income: This group is used for entering all direct incomes like sales of goods. 
13.   Indirect income: This group maintains the all incomes other than sales. That means it keeps record of all incomes like rent received, interest received etc. 
14.   Direct expenses: This group is used for recording all direct expenses means the purchase of raw material, or wages of workers.
15.   Indirect expenses: This group is used to maintain the records of all expenses other than direct expense. All salary paid, rent paid, advertisement charges are under indirect expenses. 

Creating Company 
Step 1: Select 'Create' company option from Company Info. Menu either by pressing C or by clicking on this option. The following screen will appear.

The above screen shows various fields. These are:-
i) Directory  It asks you for the path where you intend to create your company. The default data directory is C:\TALLY\DATA
ii) Name  Type the name of the company. This name will be displayed in the language in which the company is being created.
iii) Mailing Name & Address  Type the full address of your company. This will appear on all the reports.
iv) Statutory Compliance for  The countries are selected from the given list of countries. The statutory features and Base Currency Symbol are enabled in accordance with the country selected.
v) State  Select the state from the drop down list of Indian state.
vi) PIN Code  Type the Postal Index Number.
vii) Telephone Number  Type office Telephone No.
viii) E-mail Address  Type the E-mail address of the company.
ix) Currency Symbol  type Rs. For India.
x) Maintain  A window with two options pops up. These are :
a) Accounts only:  Where businesses do not deal with Inventory e.g. Professional.
b) Accounts with Inventory ' It maintains both Financial accounts as well as Inventory.
xi) Financial Year From  Type the starting date of the financial year. Tally considers 12 months from the given date e.g. 01/04/2015
xii) Books Beginning From  The date from actual transactions started but this date should be later than the starting date of Financial Year.
xiii) Tally Vault Password (if any)  If you wish to maintain company data in encrypted form.
xiv) Use security Control  This feature of Tally sets up authority levels that decides the right of the user for data manipulation.
xv) Use Tally Audit features  If set to 'yes' the changes in transactions or ledger masters can be tracked.
xvi) Base Currency Information 
a) Base currency symbol  Rs.
b) Formal name  Indian Rupees
c) Number of Decimal Places  2
d) Show Amounts in Millions?  No
e) Is symbol SUFFIXED to Amount  No
f) Put a space between Amounts and Symbol  No
g) Symbol for Decimal Portion  It is paise by default for India.
h) Decimal Places for Printing Amounts in Words ' Specify the number of decimal places for printing the amounts in words.
Step 2: Press Enter and accept the screen. Now the company gets created which can be loaded from the Company Info. Menu as and when desired.

Shutting a Company  It means unloading it. Press [Alt + F3] for Company Info menu. Select the option shut company by pressing the hotkey H. Highlight the company you 

wish to shut down from the list of companies and press Enter.
Altering / Modifying Existing Company  You can modify, at any time, any information given whilst creating the company by Alt + F3 ' Enter. A company can be DELETED only in the alter mode by pressing Alt + D.

Buttons on the Button Panel
There are underlined and non-underlined buttons on the panel.
F1 Select Company
F1 De-activates a company
F2 To Change the date
F2 To change the period
F3 Company - to switch from one company to another active company.
F3 This invokes company info menu.
F12 Configure
F11 Features. You can select or modify different features of a company. When you select Accounting Features option, the following screen will appear.

- Integrate Accounts and Inventory If set to 'Yes' will consider the inventory / stock as entered in accounting entries. If set to 'No' will ignore the inventory books figures and picks up manually entered closing stock.
- Income / Expenses Statement Instead of Profit and Loss  If non trading accounts then set to 'Yes'.
- Allow Multi-currency? Accounts can be maintained in more than one currency.
- Maintain Bill wise Details ?  It set to 'Yes' will enable you to track the invoice wise details of the Debtors and Creditors. (for Non Trading A/cs also ?)  If required for other than debtors and creditors e.g.
to track the installments of loan.
- Activate Interest Calculation  Interest can automatically be calculated by Tally based on the specified interest rates and style. (use advance parameter)  Useful where interest rates change from time to time.
- Maintain Payroll  If set to 'yes' salary register can be maintained.
- Maintain Cost Centers  Allocation of expenses or incomes is possible.
- Use cost centers for job costing  To track the expenses and incomes related to particular project.
- More than one Payroll / Cost Category  More than one Primary cost category.
- Invoicing  If set to 'yes' sales entries can be done in Invoice format in which taxes and duties are calculated automatically. These entries themselves can be treated as 'Sales bills or Tax Invoices'.
- Use Debit / Credit Notes  Set 'yes' if required.
- Enter Purchases in Invoice Format  If set to 'yes' purchase entries can be done in Invoice format.
- Use Invoice Mode for Debit / Credit Notes  Set 'yes' if invoice format is required.
- Budgets and Scenario Management 
- Maintain budgets & Controls - Set 'yes' if required.
- Use Reversing Journals and optional Vouchers - Entries can be made optional if set to yes.
- Other Features
- Enable Cheque Printing
- Set / Alter Cheque Printing Configuration
- Allow Zero Valued Entries
When you select Inventory features option in the above window, you have the following Inventory Features Window.

Configuring Company 
1) Integrate Accounts and Inventory?  Same as in Accounting features option.
2) Allow Zero Valued Entries  Set it to 'yes' if you want to permit in vouchers.
3) Maintain Multiple Godowns  If more than one locations are required then set the option to 'yes'.
4) Maintain Stock Categories?  If your inventory hierarchy requires categories to be maintained then set this option to 'yes'.
5) Maintain Batchwise Details?  If stock items are required to be stored according to batches then set this option to 'yes'.
6) Set Expiry Dates for Batches?  If your goods have expiry dates like medicines and other perishables then this option is set to 'yes'.
7) Use different Actual and Billed Quantity?  When goods billed are different than those from actually delivered or received then this is set to 'yes'. e.g. one on one free.
Allow Purchase Order Processing?  'yes' if orders are required to be processed.
Allow sales order Processing?  'yes' if sales order are required.
Invoicing  Same as explained in Accounting Features.
Track Additional Costs of Purchase ?  It displays a break up of purchase cost if set to 'yes'
Set Multiple Price Level ?  Multiple price lists can be maintained if set to yes.
Use Tracking Numbers  The relation between two sales, purchase documents can be maintained.
Use Rejection Inward / Outward Notes ?  Rejection of goods can be maintained separately and not through Debit / Credit Notes. When you select statutory and Taxation option in the above window you get all the taxation option which we will discuss later in detail.
Menu related to Accounts:
Now we have already created a company. So we will have a following screen of Gateway of Tally:-
Select 'Accounts Info' option.

Groups  Ledgers  Voucher Types  Quit

Groups  It is advisable to Group / Classify ledger information based on their functions.
Groups are helpful in classifying and identifying account heads based on their nature. Grouping helps in presenting summarized information. Regrouping is also permitted in Tally. Tally provides you with a number of pre-defined groups i.e. 28

Predefined Groups
1) Capital  It means the capital of a Proprietor, partner or share capital.
2) Reserve and Surplus [Retained Earnings]  When some part of the profit is
kept aside e.g. Capital reserve, depreciation reserve etc.
Current Assets  It is fatherly divided into following subgroups:
a) Bank Accounts  All savings and current accounts
b) Cash in hand  Cash, Petty cash etc.
c) Deposits (Assets)  Deposits made by the company e.g. FDS, Tender deposits, security deposits etc.
d) Loans and Advances (Assets)  Any loans or advances given by the company. Loan to ---- is always an Asset.
e) Stock-in-Hand  Opening and closing stock.
f) Sundry Debtors  All the parties to whom goods are sold on credit and amount is receivable from them.
g) Current Liabilities  Anything Payable by the company falls under this groups.
h) Duties and Taxes  Custom, excise duties, VAT, CST etc.
i) Provision  Provision for taxation, depreciation etc.
j) Sundry Creditors  All such parties from whom goods are purchased on credit and to whom amount is payable.
k) Fixed Assets  All the long term Assets e.g. Land and Building, Plant and Machinery, Computers etc.
l) Investments  Shares, debentures, bonds etc.
m) Loans (Liability)  All such loans taken by the company i.e. secured loans, unsecured loans, overdraft facility etc.
n) Suspense Account  Advances or expenses for which account head can be decided only after submission of bills.
o) Miscellaneous Expenses (Assets)  Company formation expenses.
p) Branch / Divisions  Company's branches or sister concerns.
q) Sales Account  Sale of goods and sale return.
r) Purchase Account  Purchase of goods and purchase return.
s) Direct Income  Income directly related to sales or professional fees.
t) Indirect Income  e.g. Interest received, Dividend received etc.
u) Direct Expenses  Which directly affect the production e.g. wages, transport and Octroi, Factory rent etc.
v) Indirect Expenses  All the Administrative Expenses such as salary, telephone, printing and stationery etc.

Creating a Group
You can also create a New Group under the predefined group if you want.
Single Group  Create
Nature of Group '
- Group behaves like a sub ledger ' 'Yes' ' Then you get group balances like
- Net Debit / Credit Balances ' Set 'No' to display both side balances.

Altering a Group 
Gateway of Tally  Accounts Info  Groups  Single Alter

But you cannot alter the parent of a predefined group.

Deleting of Group 
Gateway of Tally  Accounts Info  Groups  Single Alter
Select the group to be deleted from pop-up list Alt + D for deletion
But you cannot delete predefined groups or groups having subgroups or ledgers under it.
And you cannot delete groups in Multiple Alter mode.

Ledgers means actual Account Head. Ledgers have to be created for voucher entries
under certain groups. There are two ledger accounts inbuilt in the Tally package. These are 
1) Cash account 2) Profit and Loss account.
Single Ledger Creation
Gateway of Tally  Accounts Info  Ledgers  Create

- Name  J M Traders
- (Alias)  Give an alternate name to ledger if required
- Under  Sundry Debtors
(a list of groups will pop-up on your screen)
- Opening Balance  1,00,000 - Dr

- Mailing Details  You have to give these details if you are opening the accounts of Debtors, Creditors or Advances.
- Tax Information  PAN / IT / TIN numbers.


Displaying Ledgers 
Gateway of Tally  Accounts Info  Ledgers  Single  Display
Altering Ledgers 
Gateway of Tally  Accounts Info  Ledgers  Single Alter [Select a ledger account to be altered and press Enter]
Deleting a Ledger  It can be deleted only in alter mode by pressing 'Alt + D' and it can be deleted only if no accounting transaction has taken place.

Multiple ledger Creation :-
Gateway of Tally --------- Accounts Info -------Ledgers-------------Multiple-------Create or just press highlighted alphabet 'R'. You will have a following ledger creation screen :-

The fields in this screen are
i. Under Group : Type the name of the group under which you desire to create the ledgers.
ii. Name of Ledger : Type the ledger name
iii. Under : It will take the copy of the same group-name, which you have recently selected for Under Group Screen in the current screen.
iv. Opening balance : Type the opening balance.
v. Dr/Cr : Specify whether Debit or Credit balance.

Voucher Entry 
Keys Voucher Type
F1 Inventory button
F2 To change the date of a voucher
F4 Contra
F5 Payment
F6 Receipt
F7 Journal
F8 Sales
F9 Purchases
Ctrl + F8 Credit note
Ctrl + F9 Debit note
F10 Reverse Journal [If activated 'Yes' in F11]
Ctrl + F10 Memo vouchers


Example 1: - Record the following transactions

1. Jan 1. Cash Sales. (2700/-)
2. Jan 2. Bought from Sharma Bros. (5000/-)
3. Jan 3. Sold goods to Shyam. (3000/-)
4. Jan 4. Cash received from shyam 2950/- and discount allowed to him .
5. Jan 5. Bought from Kumar Bros. (2000/-)
6. Jan 7. Paid to Sharma bros. in full settlement. (4900/-)
7. Jan 10. Paid to kumar bros and discount received from him (1980/-)
8. Jan 15. Bought goods for cash . (3000/-)
9. Jan 18. Sold goods for cash. (8500/-)
10. Jan 19. Bought Goods from Ramakrishna (1500/-)
11. Jan 20. Sold goods to shivram (1200/-)
12. Jan 25. Paid Office Expenses. (400/-)
13. Jan 28. Paid Charity (50/-)
14. Jan 29. Paid Salary (300/-)
15. Jan 30. Cash Withdrawn for personal use. (200/-)

Ledger Creation 
Cash and P&L ledgers already created in tally.
Ledger Name Group 
Sales A/c - Sales Account
Purchase A/c - Purchase Account
Sharma’s A/c - Sundry Cr.
Shyam’s A/c - Sundry Dr.
Discount  Allo. - Indirect Exp.
Kumar Bros’s A/c - Sundry Cr.
Discount Rec A/c - Indirect Income
Ramakrishana’s A/c - Sundry Cr.
Shivram’s A/c - Sundry Dr.
Office Exp.A/c - Indirect Exp.
Charity A/c - Indirect Exp.
Salary A/c - Indirect Exp.
Drawing A/c - Capital A/c

Now You can do voucher entry :-
F2 for change Date.

Transaction Number Voucher Types
1 Sales - F8 
2 Purchase - F9
3 Sales – F8
4 Payment – F5
5 Purchase – F9
6 Payment – F5
7 Payment – F5
8 Purchase – F9
9 Sales – F8
10 Purchase – F9
11 Sales – F8
12 Payment – F5
13 Payment – F5
14 Payment – F5
15 Payment – F5

After Transaction you can check the cash Ledger.

Example 2:  Create following ledgers and put Balance (Closing/ Opening)

Dr. Particular Amount Cr. Particular Amount
Opening Stock 752 Capital 1125
Purchase 1487 Sales 3514
Sales Return 43 Purchase Return 38
Duty on Import on Goods 261 Commission 200
Carriage on Purchase 136 Sundry Cr. 776
Carriage on Sales 201
Office Salaries 240
Drawing 400
Rent 180
General Exp. 153
Cash at Bank 400
Sundry Dr. 1004
Bills Receivable 246
Horse & Carts 150
Closing Stock – 981

After creation the ledgers..  Now you can check Trial Balance

Profit & Loss Account
Finally Balance Sheet.
Inventory Master In Tally ERP 9 
Inventory Info Menu contains the following masters to manage Inventory in Tally 9.

Stock Groups: Group the Stock Items
Stock Categories: Parallel Stock Groups
Stock Items: Actual Stock items which move
Godowns: Storage locations of the Stock Items
Budgets: Budgets for different requirements
Voucher Type: Various Voucher Types
Units of Measure: Simple & Compound UOMs

Normal and Advanced Information
Information is Masters are classified into 2 modes: Normal and Advanced. Normal information can always be entered. Advanced information can be entered only if Allow 

Advanced entries in Masters? Is set to Yes in F12: Configure

F12 : Configure -> Inventory Masters: Explanations

Allow ADVANCED entries in Masters?
Like Accounts Masters, you can work in Normal modes or Advanced modes for Inventory masters. Set Yes to work in Advanced mode

Use PART NUMBERS for stock Items?
To specify Part No for Stock Items, set to Yes which will prompt a field for Part No. at the time of creation of Items.

Use Description for Stock Items?
If you wish to input description for Stock Items, set to Yes which will cause a prompt to appear for items.

Specify Default Ledger allocation for Invoicing?
Stock Items can be given default Accounts Ledger accounts for both Sales and Purchase Invoices, which will further simplify entry of data through the Voucher Class 

mechanism for Sales / Purchase.

Use REMARKS for Stock Items?
If you require additional space for detailed description for stock Items, set to Yes which will prompt a t the time of creation of items.

Use ALTERNATE UNITS for Stock Items?
If any stock item is measured in more than one Unit of Measure, set to Yes. Tally will prompt for Alternate Unit at the time of creation of items.

Allow standard Rates for Stock Items?
If you wish to enter standard Cost Price and Selling rates, set to Yes. Tally 9 will prompt at the time of creation of items.

Allow component list details (Bill of Materials) ?
If you wish to input component details for any item set to Yes and Tally will prompt at the time of creation of item.

Use ADDRESSES for Godowns?
If you require to specify Godown address, set to Yes to get a prompt at the time of creation of Items.

Stock Group
You can classify all stock items into Stock Groups based on common feature, based on brand, quality, specification etc. For example a computer dealer may create Stock 

Groups like Hard Disk, Monitor, Keyboard etc. Again sub-groups may be created in each group e.g SATA Disk, IDE Disk. Thus you can next groups to any level.

Here is an example of Stock Groups for Computer Dealers. In Stock Groups, Sub-Groups & Stock Items are presented in a hierarchical manner.

Hard Disk
Seagate 80 GB
Seagate 160 GB
Samsung 250 GB
Seagate 80 GB
CRT Monitor
LG 15 inch
LG 17 inch
TFT Monitor
Samsung 15 inch
Sony 15 inch

Creation of Stock Group

Name: Enter name of the Stock Group
Alias: Enter optional alias or alternate name
Under: Al list displaying existing Groups appears to select from. To create Primary Group, select Primary.
Can Quantities of items be ADDED?
Give yes to this question if all stock items under it can be summed up. If it is not desired, set to No

Stock Categories
Stock Categories offer the benefit of classifying an Item in another dimension.
The concept of Stock Categories may be utilized in effective way once you have understood its implication and how to implement it in your context. You have the facility, it is incumbent upon the user to utilize it. If not properly planned, it may cause wastage of time.

Creation of Stock Categories

Name: Enter the Name of Stock Category
Alias: Enter an alternate name (optional)
Under: A list displaying existing categories appears to select from. To create Primary level group, select Primary.

Stock Items

Stock items are the actual items for which you wish to maintain Accounts. Like Accounts ledger, Stock Items are accounted for.

Creation of Stock Items

Name: Type the name of the Stock Item.
Alias: Alternate name
Part No: This field will appear if you have configured so under F12: Configure. Use Part Numbers for Stock items?.You can give Part No, Style No, Design No, Bin-Card No etc.,
Alias: Alternate for Part No.

Description: This option will be available if you have activated the option Use Description for Stock Items? Under F12: Configure. You can give descriptive details for stock Items which will be optionally printed in Invoice also.

Under: Select the Stock Group under which the Item should be placed. If you want to create the item independent of any Stock Group, select Primary here.

Category: This field appears if you activated Stock Category under F11: Features. Select the Stock Category from pop-up for the Item you are creating. If you do not want to 

categorize the item Select Not Applicable from list

Remarks: This field appears if you have configured so under F12: Configure. Enter Remarks for the Item so that while looking for the item you will get this additional information. You can also write information about the item.

Units: Select Unit of Measure applicable for the Item. You can skip it by selecting Not Applicable from the list.

Alternate Units: If you configure under F12: Configure, this additional option is available. Enter alternate Unit of measure for the item.

Maintain in Batches?
If you activate under F11: Features, this option is available. Respond yes for those items you wish to track batch-wise details.

If you set Maintain in Batches to Yes, you get the following additional options,

Track Date of Mfg.? Give Yes if you require to track date of manufacturing for the item.

Use Expiry Date? Give Yes to set expiry dates for items (Applicable to drugs/medicines)

Enter Standard Rates?
This option will appear if you have configured under F12: Configure Allow Standard Rate for Stock Items.

You may value your Closing Stock in different methods including Standard Purchase Cost or Standard Sales Price. These rates may vary periodically.

By setting Yes, you can enter Standard Purchase Cost and Sales Prices on different dates.

Also you must select a Unites of Measure in order to give rates.

These rates becomes standard price list rates, i.e., while entering sales or purchase entries for this item, rates of the day will be automatically picked up.

Rate of Duty: Specify Rate of Duty applicable for the Item
Tariff Classification: Enter Tariff classification under which the item falls. This field will appear when you enter a valid value in the Rate of Duty above.

Set Components (BoM) ?
For items which are manufactured or assembled if you wish to input component details (Bill of Materials) set Yes. Which pops up a screen to enter component details.

Opening Balance: Enter opening stock details for the item. If you have activated all the features, you will be asked to enter Quantity, Godown, Batch/Lot No., Rate, Per and 

Value. You can split opening stock into multiple batch-wise, Godown wise.


Godown is the place to store Goods which may be a warehouse, Rack, shelf, bin or anything. You can extend this concept even to process / contractor / third party job worker.

If you wish to monitor locationwise movement of stock, you may create Multiple Godowns and while recording transactions you will specify the location, i.e., Godown Tally 9 allows you to create not only multiple Godowns, but like Cost Centers, you can create sub-Godowns and nest into any level. Thus you can logically build Factories, 

Warehouses, Shed Numbers, Godown Number, Rack Number, BIN Number etc.

Creation of Godown
Name: Type the name of the Godown
Alias: Alternate name
Address: This option will be available if you set Use Address for Godowns to Yes in the Inventory Masters under F12: Configure. You may enter address for the storage space.
Under: If it is primary level godown, select Primary from the list. If the storage space is under any created Godown, select from list.

Advanced Information
If Allow Advanced entries in Masters is set to Yes in Inventory Masters under F12: Configure, you can input following additional information.

Allow Storage of Materials?
If you do not store any materials directly in any Godown, you may set it to No.

Exclude from Stock Valuation?
If you want materials stored in any godown not to be included in stock valuation, set to Yes.

Unit of Measure

Different items may be measured in various units e.g., KG, Metre, Litre, Box, Carton, Dozen, Set, Piece etc. This options allows you to create all such units.

Creation of Unit of Measure

Symbol: Enter symbol t denote the Unit of Measure

Formal Name: Enter full name of the Unit. It must be different from Symbol

Number of decimal places: If the unit can be expressed as fraction, specify maximum number of decimal places required to express. If any Unit is not fractionable, give 0. 

permissible range is 0 to 4.

Creating Complex Unit of Measure
If the simple UoM is not sufficient, you may create a complex UoM and specify the conversion factor between them.
Value Added Tax (VAT)
VAT is an indirect tax on goods. The basic premise of VAT is to tax the true value added to the goods, at each stage of the transaction chain. 
To Activate the option of VAT
F11 : Features
F3 : Statutory & Taxation
Enable VAT set to Yes
Set / Alter VAT Details Set to Yes

After that we will create following ledger –

1. Ledger - Input Vat @ 4%
1. Under – Duties & Taxes
2. Type of duty – VAT
3. Vat  sub type – Input Vat
4. Vat / Tax Class – Input Vat @ 4%

2. Output Vat @ 4%
1. Under – Duties & Taxes
2. Type of duty – VAT
3. Vat  sub type – Output Vat
4. Vat / Tax Class – Output Vat @ 4%

3. Sales @ 4%
1. Under – Sales Account
2. Used in VAT Return – Yes – Sales @ 4%

4. Purchase @ 4% 
1. Under – Purchase Account
2. Used in VAT Return – Yes – Purchase @ 4%

5.Nadeem Khan (Sundry Cr) 
 Sanskar Bagh ( Sundry Dr)
After creating ledger we will make voucher entries.
1. Purchase 5 Computers from Nadeem Khan @ 15000.

2. Computer sold to sanskar bagh No. 3 rate @ 16500.

Interest Calculation
Follow the below steps for interest calculation in Tally.
First Press F11 to Features than go to Accounting Features,   Activate Interest Calculation – Yes
(Use Advanced Parameters – Yes )  and Use Debit / Credit Note – Yes
After that go Account info Ledger  Create 
Name : Nadeem Traders 
Under – Sundry Cr.
Activate Interest Calculation – Yes

Than Create another ledger for interest Due.
Name : Interest Due.
Under – Indirect Exp.
After that Change in voucher types
Account Info  Voucher Types   Alter  Credit Note   Name of Class – Simple Interest 
Use Class for Interest Accounting – Yes
Now Make Following Purchase Entry For Date 06/04/2015

Now you can check Interest Amount by following steps :
Display  Statement of Account   Interest Calculation   Ledger    Nadeem 
Change date From 01.04.2015  To 26.06.2015
Now Make a Credit Note Entry. For that Press Ctrl + F8 . (05 May 2015)
Ref. CN-01, 
To  Nadeem
By  Interest Due.
Now Make the payment entry.

Service Tax
Service Tax is a destination based consumption tax in the form of Value Added Tax. Service Tax is a indirect tax imposed on specified services (taxable services) provided by a service provider (Company, Individual, Firm etc.). Service Tax was first brought into force with effect from 1 July 1994. Initially only three services were brought under the net of service tax and the tax rate was 5%. Gradually more services came under the ambit of Service Tax. In accordance with the Annual Budget 2012-13, the current Service tax rate has been increased from 10% to 12%.

Enabling Service Tax in Tally
After creating company first we will enable service tax by Press F11 (Feature) 
Statutory & Taxation  Enable Service Tax  Set / Alter Service Tax Details – Yes
After that fill the company service tax details:

Now create following ledgers :
1. Name – Nadeem Services
Under – Sundry Cr.
Is Service Tax Provider / Receiver – Yes
2. Name – Maintenance & Repairing
Under – Purchase Account
Is Service Tax Provider / Receiver – Yes
Category Name – Management, Maintenance or   Repair 
3. Name – Service Tax
Under – Duties & Taxes
Type of Duty – Service Tax
 Category Name – Management, Maintenance or   Repair 
4. Name - Bank A/c
Under – Bank Account

Now make following transactions
1. Purchase 
2. Payment

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