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Accounts Information - Introduction

Introduction

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Information - Introduction Introduction Page 1 of 106 1. The top bar of the screen contains

1. The top bar of the screen contains the product message, system date and time.

2. The left hand side of the screen displays the activity status.

3. The right side contains the menu system and the button bar. The menu Accounts Info. is the current active menu.

More:

Main functions in Masters menu

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Main Functions in Masters Menu

 
 
 

Accounts Information contains the masters as listed in the Accounts Info menu . Each master has to have the following functions, besides others and are consistent in all Masters menus throughout Tally:

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Accounts Information - Introduction Page 2 of 106 Create This enables creation of new masters. Once

Create

This enables creation of new masters. Once a master has been created, any modification to it must be done through the Alter mode.

Display

Use this mode to view Master information. Changes are not permitted.

Alter

Use this mode to view and change master information. You cannot create a new master. We shall begin discussion on Accounts Information with how to build Groups and then follow with other accounts masters.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Introduction

 
 
 

Classification of Account-heads

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

The single ledger concept does away with the need for sub-ledgers and corresponding control accounts in General Ledger. Ledger balances by themselves do not convey much without some form of classification. Tally, therefore, gives you a powerful way to group ledger information, which is meaningful in reports and compliant with laws. Groups, in Tally, serve to both classify and identify account heads according to their nature and enable presentation of summarised information.

Traditionally, grouping of accounts is a post-accounting activity that is done only when reports are needed. This has an inherent drawback of delayed reports that are not available at hand when required. Tally gives you great flexibility in setting up your chart of accounts.

It allows you to group your ledger accounts right at time of creating your accounts chart. Your reports and statements will reflect the desired classification at all times. Further, Tally permits you to re-group your ledgers anytime (with some minimal restrictions), should re-classification be necessary. We acknowledge that re-grouping is always possible and would, in practice, be resorted to, when there are changes in the nature of information. However, re-grouping can be done only by a user account that has requisite authority under the access control list.

At the highest level of grouping, accounts are classified into capital or revenue - more

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specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, Tally provides a set of reserved groups and allows you to modify their names or create sub-groups.

The concept of sub-groups

Groups have a hierarchical organisation. At the top of the hierarchy are Primary Groups. These are the main asset, liability, income or expenditure groups of accounts that determine the entire accounting and their presentation, i.e., whether a ledger affects Profit & Loss Account (as a revenue item) or goes into the Balance Sheet. The Reserved Primary Groups and subgroups (shown indented) are:

Aliases for the groups are given in square brackets [ ].

Primary Groups of capital nature

1. Capital Account

a.

2. Current Assets

a. Bank Accounts

Reserves and Surplus [Retained Earnings]

b. Cash-in hand

c. Deposits (Asset)

d. Loans & Advances (Asset)

e. Stock-in-hand

f. Sundry Debtors

3. Current Liabilities

a. Duties and Taxes

b. Provisions

c. Sundry Creditors

d. Fixed Assets

4. Investments

5. Loans (Liability)

a. Bank OD Accounts [Bank OCC Accounts]

b. Secured Loans

c. Unsecured Loans

6. Suspense Account

7. Miscellaneous Expenses (Asset)

8. Branch/Divisions

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9.

Sales Account

10.

Purchase Account

11.

Direct Income [Income Direct]

12.

Indirect Income [Income Indirect]

13.

Direct Expenses [Expenses Direct]

14.

Indirect Expenses [Expenses Indirect]

More:

A discussion on each of the reserved groups:

Common and possible errors in Grouping and account classification

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

A Discussion on Each of the Reserved Groups

 
 
 

1. Capital Account

This holds the Capital and Reserves of the company. Examples of ledgers that may be opened under this group are Share Capital, Partners' Capital A/c, Proprietor's Capital Account.

Reserves and Surplus [Retained Earnings]

Open ledgers like Capital Reserve, General Reserve, Reserve for Depreciation, etc.

2. Current Assets

Directly under Current Assets, you may find place for assets that do not fall under the following sub-groups:

Bank Accounts

For Current, savings, short term deposit accounts, etc.

Cash-in hand

Tally automatically opens one Cash A/c under this group. You are permitted to open more cash accounts, if necessary.

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Deposits (Asset)

In essence, a place for Fixed Deposits, Security Deposits, or any deposit made by the company (not received by the company, which is a liability).

Loans & Advances (Asset)

For all loans given by the company and advances of a non-trading nature, e.g., advance against salaries, or even for purchase of Fixed Assets. We do not recommend you to open Advances to Suppliers account under this group. Doing so gives rise to the difficulty in ascertaining advance position of a particular supplier and to adjust future bills against such advances. For further details, please refer to the section on Common Errors.

Stock-in-hand

This is a special group. You may wish to open accounts like Raw Materials, Work-in-Progress and Finished Goods. How the balances are controlled depends on whether you opted to maintain an integrated account-cum-inventory system in the company features. (refer to Company creation section for more details) Let's consider the options:

Integrated Accounts-cum-Inventory

You are allowed transactions in Inventory records and the account balances are automatically reflected in the Balance Sheet as Closing Stock. You are not allowed to directly change the closing balance of an account under this group.

Non-integrated Accounts-cum-Inventory

Accounts that fall under this group are not permitted any transactions. 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)

Sundry Debtors

For your customer accounts. Do not open them under the Sales Account group, which is a revenue account. For more information on common and possible errors in grouping of accounts, please refer below to the separate paragraph on the topic.

3. Current Liabilities

You may open accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry Creditors

Duties and Taxes

For all tax accounts like VAT, MODVAT, Excise, Sales and other trade taxes. A convenient place to find the total liability (or asset in case of advances paid), as well as the break-up of individual items.

Provisions

For provision accounts like Provision for Taxation, Provision for Depreciation, etc.

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Sundry Creditors

For trade creditors of the company. Do not open your supplier accounts under the Purchases Account group, which is a revenue account. For more information on common and possible errors in grouping of accounts, please refer below to the separate paragraph on the topic.

4. Investments

To group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts, etc. A convenient place to view the total investments made by the company.

5. Loans (Liability)

For loans, typically long term, taken by the company.

Bank OD Accounts [Bank OCC Accounts]

Tally gives two distinct types of Bank Accounts, The Bank OCC A/c is meant to record the company's overdraft accounts with banks. e.g., Bill Discounted A/cs, Hypothecation A/cs etc.

Note: An account under Bank OCC A/c group is printed as separate Cash Book in the traditional Cash Book format and does not form part of the Ledger.

Secured Loans

For term loans and other long/medium term loans that have been obtained against security of some asset. Tally does not verify the existence of the security. Typical accounts would be Debentures, Term Loans, etc.

Unsecured Loans

For loans obtained without any security .e.g., Loans from Directors/partners or outside parties.

6. Suspense Account

Theoretically speaking, this group should not exist. However, in modern accounting, many large corporations use a Suspense Ledger to track moneys paid or recovered, the nature of which is not yet known. The most common example is money paid for Travelling Advance whose details would be known only upon submission of the TA bill. Some companies may prefer to open such accounts under

Loans and Advances (Asset) group.

Please note that Suspense Account is a Balance Sheet item. Any expense account even if it has 'suspense' in its name, should be opened under a Revenue group like Indirect Expenses and not under Suspense Account group.

7. Miscellaneous Expenses (Asset)

This group is typically used more for legal disclosure requirements, like 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 would remain to the extent not

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written off in Profit & Loss Account. Tally does not, however, show a loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss Account balance is shown separately in the Balance Sheet.

8. Branch/Divisions

This group is provided to keep the ledger accounts of all companies that are your company's branches, divisions, affiliates, sister concerns, subsidiaries, etc. This is a group of convenience. You may not wish to utilise it in this manner. Note that Tally 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 you would any party account. If you wish to maintain the books of that branch/division on you computer, you must open a separate company. (Tally allows maintenance of multiple company accounts).

Revenue Primary Groups

9. Sales Account

For different sales accounts. The natural segregation of your sales accounts could be based on Tax slabs or type of sales. This also becomes a simple mechanism for preparation of Tax returns.

An example of such classification may be helpful:

Classify under Sales Accounts the following sub-groups

Domestic SalesClassify under Sales Accounts the following sub-groups Export Sales Now under Domestic Sales open the following

Export Salesunder Sales Accounts the following sub-groups Domestic Sales Now under Domestic Sales open the following ledgers:

Now under Domestic Sales open the following ledgers:the following sub-groups Domestic Sales Export Sales Sales (10%) Sales (5%) Sales (exempt) You may even

Sales (10%)Sales Now under Domestic Sales open the following ledgers: Sales (5%) Sales (exempt) You may even

Sales (5%)under Domestic Sales open the following ledgers: Sales (10%) Sales (exempt) You may even open an

Sales (exempt)Sales open the following ledgers: Sales (10%) Sales (5%) You may even open an account Sales

You may even open an account 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).

Please do not open customer accounts under this group. For more details on possible errors in this regard, please refer to the paragraph given below.

10. Purchase Account

This is similar to sales accounts, except for the purpose of the transaction.

11. Direct Income [Income Direct]

For non-trade income accounts that affect Gross Profit. All trade income accounts would naturally fall under Sales Accounts. You may wish to use this group for accounts like Servicing Contract Charges that follow sales of equipment.

If yours is a professional services company, you may not use the Sales Account group at all.

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Instead, open accounts like Professional Fees under this group.

12. Indirect Income [Income Indirect]

For miscellaneous non-sale income accounts, e.g., Rent Received and Interest Received.

13. Direct Expenses [Expenses Direct]

For manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

14. Indirect Expenses [Expenses Indirect]

For all other administrative, selling or non-direct expenses.

Tally automatically opens the Profit & Loss Account which is a reserved primary account. You may use this account to pass adjustment entries through journal vouchers .e.g., transfer of profit or loss to Capital or Reserve account.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Common and Possible Errors in Grouping and Account Classification

 
 
 

Debtor/Creditor classification

Placing individual party accounts under Sales or Purchase Accounts groups

Accounts of parties with whom your company has trade relationship must be opened under any of the following groups (or sub-groups under them) only:

Sundry Debtorsany of the following groups (or sub-groups under them) only: Sundry Creditors Branch/Divisions Sales and Purchase

Sundry Creditorsgroups (or sub-groups under them) only: Sundry Debtors Branch/Divisions Sales and Purchase account groups are meant

Branch/Divisionssub-groups under them) only: Sundry Debtors Sundry Creditors Sales and Purchase account groups are meant for

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 would not become available unless the accounts belong to one of these groups.

Opening two accounts of the same party

Tally has separately classified debtors, creditors and branch/divisions only for convenience. There is no operational distinction except for the purpose of keeping the accounts of a particular group together during displays and analysis. Thus you can pass both sales and purchase entries

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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, could be placed under Sundry Creditors, as that would be the natural place for you to look for his account. Tally 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.

You would, therefore, note that you need not open two accounts of the same party - one under Sundry Debtors and another under Sundry Creditors. Remember, Tally 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 analysing his net position in one place. We recommend that you maintain a single account to obtain best benefits.

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.

Simply adhering to the reserved groups may be sufficient for many organisations. For greater diversity, Tally allows you to create your own groups, either as sub-groups or primary groups. Groups can be sub-classified to practically an unlimited level, to give a virtual accounting tree. At the lowest level, of course, would be the ledger account. An example of sub-groups would help illustrate the power of this facility:

The group Indirect Expenses can be sub-classified as under (ledgers given in italics):

can be sub-classified as under (ledgers given in italics): Remember, that during voucher entry, only the

Remember, that during voucher entry, only the ledger accounts are used, - and the grouping structure remains transparent, irrespective of the use of sub-classification.

This idea can be easily extended to other areas like Sundry Debtors, Sales Accounts, Purchase Accounts, etc. For example, Debtors and Creditors are very useful when sub-grouped according to geographical areas:

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Accounts Information - Introduction Page 10 of 106 You may prefer to classify creditors according to

You may prefer to classify creditors according to their tax status, e.g.,

to classify creditors according to their tax status, e.g., You can see that unlimited levels of

You can see that unlimited levels of sub-grouping is a convenience to be used thoughtfully. Use it to give a never before depth to your presentation of accounting information but take care to not carry it too far. Too many levels of sub-groups may make their use redundant and their management unwieldy. A simple guideline could be to create branches of sub-groups or ledgers only if they are two or more than in number. A situation where you have created groups as follows should be avoided:

where you have created groups as follows should be avoided: file://C:\Documents and Settings\ACCOUNT\Local

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Obviously, you could have done with simply creating ledgers directly under Marketing Expenses.

Note: While it is necessary to assign every ledger to a group/sub-group, it is not essential to have your own sub-classification of accounts; you may simply use the reserved groups for grouping your ledger accounts.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

How to Manage and Operate Groups?

 
 
 

Gateway of Tally > Accounts Info > Groups

  Gateway of Tally > Accounts Info > Groups You may create, alter, or display a

You may create, alter, or display a single Group or multiple Groups. Single group option is useful when you wish to work on one group at a time. Multiple is a time and labour saving option in a list format and is useful when working on many sub-groups at a time. Once a sub-group is created, it behaves exactly like a group. Any reference to group would deem to include a sub- group.

 
 
 

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Creating a Group

 
 
 

If you are creating groups for the first time, it is advisable to configure them before you proceed:

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You may configure your groups to enable/disable advanced mode.

[F12] > Acct/Inv info > Accounts masters

mode. [F12] > Acct/Inv info > Accounts masters These are the default settings. (The Masters Configuration

These are the default settings.

(The Masters Configuration screen allows settings for all types of masters, and not just those that are relevant to the current operations. Here, only the two mentioned options are of relevance to accounts masters. Additionally, the ALIAS setting in Master Configuration also affects accounts masters)

Single Group

Gateway of Tally > Accounts Info > Groups > Single Create

Tally > Accounts Info > Groups > Single Create Buttons in single group screens F3:Company: To

Buttons in single group screens

F3:Company: To work with a different company. In the creation mode, you can create groups in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Cmp: To work on the same report of another company. Available only in display mode.

Groups, Ledgers, Cost Categories, Cost Centres, Voucher Types, Currency, Budgets:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features: To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

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F12:Configure: To change configuration of master information.

Note:

1. Configuration changes affect all companies whereas Features changes affect only the current company.

2. Advanced mode allows entry of additional information as follows:

Creation of Primary Groupmode allows entry of additional information as follows: Control behaviour like sub-ledger Used for calculation for

Control behaviour like sub-ledgeradditional information as follows: Creation of Primary Group Used for calculation for taxes and discounts in

Used for calculation for taxes and discounts in invoices (These are further explained at the end of the section)Creation of Primary Group Control behaviour like sub-ledger If you have not opted for advanced entries

If you have not opted for advanced entries in masters, you will need to enter only the following information to create a group:

to enter only the following information to create a group: Name of Group Enter the name

Name of Group

Enter the name of the desired group or sub-group. (e.g., Administrative expenses).

Alias

Give an alias to allow access the group using the Alias in addition to its name; or leave it blank. (e.g., for Administrative expenses, you can give 'Office

Expenses' or even an alphanumeric code, say 'E001', as an alias)

Under

Specify under which existing (Parent) group the sub-classification is needed. You may create a new Parent Group by using <Alt>+<C>. The use of <Alt>+<C> is explained in the Annexure Special Key Combinations.

More:

Advanced mode of master entries for Groups

More: Advanced mode of master entries for Groups Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights

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Advanced Mode of Master Entries for Groups

Page 14 of 106 Advanced Mode of Master Entries for Groups The following are applicable only

The following are applicable only when advanced mode is activated.

Under

If it is a new primary group, select Primary (requirement of a new primary group would be extremely rare but the option exists). Creation of new Primary Group is not allowed if Advanced entries are not permitted (set to No).

If a new Primary Group is created, you must specify whether it is an asset, liability, income or expenditure by selecting the appropriate option. If you specify an income or expenditure you may also determine whether it affects gross profits by suitably answering the question

Does it affect Gross Profits? Yes/No.

(This concept can be used in cases where you would like to segregate your profits into Operative Profit and Net Profit where you may want to consider other revenue accounts in addition to Direct instead of Gross and Net Profit). Normally, Tally calculates GP using Opening Stock, Purchase Accounts, Direct Expenses, Sales Accounts, Direct Incomes and Closing Stock only. To make other accounts contribute to this, and yet not classified under these reserved heads, you would set the answer to Yes.

Group behaves like sub-ledger?

To display Sundry Debtors without Ledger break-up in statements. Normally Sundry Debtors would have a large number of ledger accounts under it and it can be exploded during display to show ledger balances. To avoid this detailed display, choose Yes.

Used for Calculation (e.g. taxes, discounts)?

Yes if ledgers under this group would have percentages for discounts/taxes to be used for invoice entry. Remember that only voucher entry in 'invoice' mode uses the automatic calculation capability (for example, it would be fruitless to specify a group 'Depreciation of Assets', and created ledgers such as 'Depreciation 10%', 'Depreciation 25%' in the hope of getting them used for automatic calculation purposes).

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Display or Alter a Group

 
 
 

Gateway of Tally > Accounts Info > Groups > Single Display/Alter > select name from List of Groups

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Accounts Information - Introduction Page 15 of 106 (Since display mode is identical to alter but

(Since display mode is identical to alter but without the modification capability we would discuss only alter mode here. Depending upon the access rights available, you may display a master in simply display mode or in alteration mode.)

From the popup list of groups, select the group you wish to alter. The information in the alteration/display screen is the same as in 'group creation' with an additional field 'Position Index in Reports'. This field is displayed or hidden with the toggle key/button[F10]- Change sort/Skip sort. A discussion on position index follows.

You are allowed to alter any information in the screen except in specific circumstances given below (these apply to multiple alteration of groups as well):

You cannot change the parent or behavioural attributes of a Reserved group. Exceptions are the groups Branches/Divisions and Suspense Account, where the 'Asset' or 'Liability' concept is modifiable. This determines the location of the group in the VERTICAL Balance Sheet only.

Deleting a Group

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. Select the group to be deleted.

2. Press <Alt>+<D> to delete.

Note: You will not be allowed to delete a group if: it is a reserved group; or there are sub-groups or ledgers under it.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Advanced Usage

 
 
 

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Position index in reports

Position index is the primary key for sorting groups and ledgers for reports; the group name being the secondary key. It determines the position of the group in relation to other groups in a report. It is the default sorting method in most reports. Sorting method can be changed when viewing lists by changing the configuration [F12].

when viewing lists by changing the configuration [F12]. At the time of its creation, a group

At the time of its creation, a group is automatically assigned the position of its parent (or 500 if it is a new primary group) and hence you do not need to give the index field when creating a group. The default position indices for reserved groups are:

All reports, e.g. Trial Balance, including the above list, will be sorted according to the position index in increasing order. You will observe that it is not alphabetic. The positions have been ascribed for the Balance Sheet and Profit & Loss Account, which is based roughly on the liquidity concept and company law. These indices may be changed to effect a shift in the location of an account, as illustrated in the following example. The same index number can be assigned to more than one group in which case they will appear one after another in alphabetic order (sorted on the secondary key).

Create a Group "My Own Group" under Primary as an Asset. It's sort index would default to 500.

You may verify this using single alteration of the group "My Own Group".

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Accounts Information - Introduction Page 17 of 106 Open a ledger account "My Own Ledger" under

Open a ledger account "My Own Ledger" under this group with opening balance of 10,000. The group's position in the Balance Sheet would be thus:

The group's position in the Balance Sheet would be thus: Let us now alter the Position

Let us now alter the Position Index (sort position) of the group "My Own Group" to 45. (You may do this quickly by positioning the cursor on 'My Own Group' and pressing <Ctrl>+<Enter>).

The Balance Sheet would now be rearranged as follows:

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Accounts Information - Introduction Page 18 of 106 You are therefore able to decide the position

You are therefore able to decide the position of an item in your reports.

Though position indices can be altered, you are advised not to do so without being absolutely sure of its effect. Please remember that the change affects all reports. If you have altered the index but which you now do not wish to adopt, you may revert to the above default settings through group alteration.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Expert Usage

 
 
 

Multiple Creation of Groups

Gateway of Tally > Accounts Info > Groups > Multiple Create

Tally > Accounts Info > Groups > Multiple Create Explanation on Buttons F3: Company: To work

Explanation on Buttons

F3: Company:

To work with a different company. In the creation mode, you can create groups in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or

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<Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Cmp:

To work on the same report of another company. Available only in display mode.

F4: Chg Parent:

To change parent of the selected group from popup names of groups list.

For example, you are currently altering groups classified under Loans Liability, and wish them all to be re-classified under 'Bank OCC A/c'. Instead of individually altering each, name, you may do so by pressing F4.

F4: New Parent:

To change the parent group. (relevant in Alteration/Display mode only)For example, you are currently altering groups classified under Loans Liability, and now wish to ABANDON the current activity, and alter groups under Bank OCC instead.

Skip names: For faster data entry when you need to alter only the parent of many sub-groups but not the name of the sub-group itself.

F8:Skip Parent:

For faster data entry when you do not need to alter the parent of sub-groups but the sub-group names and/or position indices.

F10:Chg Sort or Skip Sort:

Toggle for altering the Sort Position

Groups, Ledgers, Cost Categories, Cost Centres, Voucher Types:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features:

To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure:

To change configuration of master information.

Note: Configuration changes affect all companies whereas Features changes affect only the current company

Choose multiple creation when you wish to create a number of sub-groups which will automatically take the parent's advanced mode information.

Under Group

F4:Parent or first letter of existing group

The entry screen allows you to specify the parent group under which the sub-group can be created in a columnar list. You are allowed to create a new parent using <alt>+<C>. Select [All Items] if the new sub-groups may have different parent groups.

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Below the Parent Group, of the three columns 'Sl. no.', 'Name of Group' and 'Under', Sl. no is filled up automatically. You must give the new sub-group names in the Group Name column. The "Under" column defaults to the Parent group name you had specified in 'Under Group'. If you had selected [All Items], you must specify the Parent Group for each sub-group. When finished, press <enter> in the blank 'Name of Group' field and <enter> again or yes to accept the list.

In multiple group creation, the sub-groups will automatically adopt the characteristics of their parent groups including those specified in advanced mode. If you wish to change individual group behaviour created using multiple groups, use 'single group/alter' option.

Display/Alter Multiple Groups

Gateway of Tally > Accounts Info > Groups > Multiple Display/Alter.

You would normally choose this option when you need to alter names or change parents of many groups. Select a particular group for altering sub-groups under it or [All Items] to list all groups, their parents as well as the position indices. Change restrictions as given above in Single Groups also apply to multiple groups.

Managing Groups in multiple companies

Copy masters from one company to another

Master information is generally similar for most group companies and it is certainly beneficial to maintain same group structure and ledgers, more so 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 task of re-creating masters in other companies, Tally enables you to copy the groups created in one company to another.

The companies must be selected to allow switching of companies.

Gateway of Tally > Select Company A

Gateway of Tally > Select Company B

Copy a single group from one company to another

First select the source company [F1], unless already selected.

Gateway of Tally > Select Company A

Gateway of Tally > Accounts Info. > Groups > Single/Alter

Select the particular group > [F3]: Change to destination company (Company B) > Accept the screen, after making alterations, if any.

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.

On accepting the screen, you are returned to the source company 'list of groups'. The same group now also exists in the destination company.

Copy multiple groups from one company to another

[F1] Select the source company (Company A)

Gateway of Tally > Accounts Info > Groups > Multiple/Alter.

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Select the particular group or [All Items] > [F3]:

Change to destination company > Accept the screen, after making additions/alterations, if any.

On accepting the screen, you are returned to the source company 'list of groups'. The same group now also exists in the destination company. It may be obvious that the above method of copying masters is possible only if the books of accounts are maintained on the same computer system.

Note: The alternate mechanism to transfer information between companies is to use the 'Export of Data' and 'Import of Data'. Export/import is more flexible in that it allows incoming information from companies which do not exist on your system. For example, you could export your Masters and send the resultant files to your branches for their initial master creation.

Note : The above method can be used for copying other masters like ledgers, cost categories and cost centres.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Introduction

 
 
 

In the previous chapter, the concept of groups, as implemented in Tally, was explained. You were also given a number of examples of grouping ledger accounts. You will now learn how Tally is used to work with ledgers. A Ledger is the actual account head to which you identify a transaction. You pass all accounting voucher entries using ledgers. However, as mentioned in the introduction to Groups, all ledgers have to be classified into groups. Hence, a thorough understanding of account classification is important for working with ledgers. We have reproduced certain portions from the groups chapter here.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

How to Manage and Operate Ledgers?

 
 
 

Gateway of Tally > Accounts Info. > Ledgers

Accounts Information - Introduction

Page 22 of 106

Accounts Information - Introduction Page 22 of 106 Normal users would work with Single Ledger. Hence,

Normal users would work with Single Ledger. Hence, we shall discuss the different operations under Single Ledger here.

Multiple ledger operation is meant for expert users who may refer to the Section 'Expert Usage' at the end of this Chapter.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Creation of a Ledger Account

 
 
 

The information required for creation of ledgers depends on the features opted by you. If the setting of the Accounting Features [F:11] of your company is No for all options, your ledger creation screen would need minimal information.

It should be noted that Tally automatically creates two ledger accounts, viz., Cash (under Cash- in-hand) and Profit & Loss Account (direct Primary account). It does not make any other presumptions. You must create all other account

heads. There are no restrictions in ledger creation except that you cannot create another Profit & Loss A/c (actually an account that behaves like one). You may create any number of Cash accounts (by another name like "Petty Cash" ).

You will, now, be guided to create a ledger account with minimal information. For discussions on additional features, please refer to 'Advanced Usage'.

Gateway of Tally > Accounts Info. > Ledgers > Single Create

Accounts Information - Introduction

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Accounts Information - Introduction Page 23 of 106 Name Feel free to give the full name

Name

Feel free to give the full name of the account. Tally fits it all in. Press <enter> to move to the next field. Tally does not allow duplicate names. The uniqueness check is made here itself instead of after you have entered all other information.

You will find that punctuation and other non-relevant information are ignored by Tally in its recognition of a name, Thus, CST, C.S.T. and C. S. T. are all considered identical.

You will now actually experience the small conveniences, which you would soon take for granted. You notice that Tally converts the first letter of all relevant words to upper case which helps you speed up your data entry. You need not bother about changing the case every time it is a different word.

Group

All accounts must be classified in their appropriate groups. (You should go through the Chapter on Groups now if you not already done so). You must specify which group the ledger falls under.

Note: You may always create a new group by pressing <alt>+<C>.

A Group is not important by itself, but because it controls the usage of ledger accounts. A wrong classification would affect the treatment of the ledger account in final statements and during voucher entry. You can, of course, alter a ledger account to change its group classification at any time.

Note: alter a ledger or a group from any display by <ctrl>+<enter>.

More:

Common and possible errors in Grouping and account classification

Groups - a revisit

Opening Balance

account classification Groups - a revisit Opening Balance file://C:\Documents and Settings\ACCOUNT\Local

Accounts Information - Introduction

Page 24 of 106

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Common and Possible Errors in Grouping and Account Classification

and Possible Errors in Grouping and Account Classification Reproduced below are some very important issues pertaining

Reproduced below are some very important issues pertaining to groups.

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 any of the following groups (or sub-groups under them) only:

Sundry Debtorsany of the following groups (or sub-groups under them) only: Sundry Creditors Branch/Divisions Sales and Purchase

Sundry Creditorsgroups (or sub-groups under them) only: Sundry Debtors Branch/Divisions Sales and Purchase account groups are meant

Branch/Divisionssub-groups under them) only: Sundry Debtors Sundry Creditors Sales and Purchase account groups are meant for

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 would not become available unless the accounts belong to one of these groups.

2. Opening two accounts of the same party

Tally has separately classified debtors, creditors and branch/divisions only for convenience. There is no operational distinction except for the purpose of keeping the accounts of a particular group together during displays and analysis. Thus 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, could be placed under Sundry Creditors, as that would be the natural place for you to look for his account.

Tally 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.

Note: You need not open two accounts of the same party - one under Sundry Debtors and another under Sundry Creditors.

Remember, Tally 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 in one place. We recommend that you maintain a single account to obtain best benefits.

3. Placing expenditure items under a Liabilities group, e.g., the expenditure item

'Rates & Taxes' under the group 'Duties and Taxes'.

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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.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Groups - A Revisit

 
 
 

Simply adhering to the reserved groups may be sufficient for many organisations. For greater diversity, Tally allows you to create your own groups, either as sub-groups or primary groups. Groups can be sub-classified to practically an unlimited level, to give a virtual accounting tree. At the lowest level, of course, would be the ledger account. An example of sub-groups would help illustrate the power of this facility:

The group Indirect Expenses can be sub-classified as under (ledgers given in italics):

can be sub-classified as under (ledgers given in italics): Remember, that during voucher entry, only the

Remember, that during voucher entry, only the ledger accounts are used, - and the grouping structure remains transparent, irrespective of the use of sub-classification.

This idea can be easily extended to other areas like Sundry Debtors, Sales Accounts, Purchase Accounts, etc. For example, Debtors and Creditors are very useful when sub-grouped according to geographical areas:

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Accounts Information - Introduction Page 26 of 106 You may prefer to classify creditors according to

You may prefer to classify creditors according to their tax status, e.g.,

to classify creditors according to their tax status, e.g., You can see that, unlimited levels of

You can see that, unlimited levels of sub-grouping, is a convenience to be used thoughtfully. Use it to give a never before depth to your presentation of accounting information but take care to not carry it too far. Too many levels of sub-groups may make their use redundant and their management unwieldy. A simple guideline could be to create branches of sub-groups or ledgers only if they are two or more than in number. A situation where you have created groups as follows should be avoided:

where you have created groups as follows should be avoided: Obviously, you could have done with

Obviously, you could have done with simply creating ledgers directly under Marketing Expenses.

1. While it is necessary to assign every ledger to a group/sub group, it is not essential to have your own sub classification of accounts; you may simply use the reserved groups for

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grouping your ledger account

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Opening Balance

 
 
 

(As on date of beginning of books)

If yours is an existing company whose books you are putting onto Tally, this would be applicable in the following circumstances:

If 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.

Tally recognises normal accounting principles of debit balances for Assets and credit balances for Liabilities. Of course, it accepts the reverse for obverse balances. Revenue accounts normally do not have balances. Tally, however, permits you to give balances even for such accounts - You may be transferring your books on to Tally 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.

Tip to speed up data entry: You may use <Ctrl>+<A> at the field following which the information in other fields do not need to be changed.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Display or Alter a Ledger Account

 
 
 

Information in display and alter is the same, hence only alter is discussed. Display option does not permit any modification. Alter option is accessible only to authorised users.

Gateway of Tally > Accounts Info. > Ledgers > Single Alter > select ledger

Accounts Information - Introduction

Page 28 of 106

Accounts Information - Introduction Page 28 of 106 You are allowed to alter any information of

You are allowed to alter any information of the ledge 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'.

Please refer to 'Advanced Usage'

Deleting a ledger account

for specifying closing stock values.

You can delete a ledger from the alteration mode by pressing <Alt>+<D>. Tally does not allow deletion of accounts that have transactions. Therefore, should you wish to delete an account, which has transactions, you must first delete all its voucher entries.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Advanced Usage

 
 
 

Assuming that you have set up your configuration and features as below.

[F12] Configure

up your configuration and features as below. [F12] Configure [F11] Features file://C:\Documents and

[F11] Features

Accounts Information - Introduction

Page 29 of 106

Accounts Information - Introduction Page 29 of 106 …And that you have also activated bill wise

…And that you have also activated bill wise details and cost centres in features.

Your ledger creation screen would now require/allow additional information.

screen would now require/allow additional information. (alias) (unless you have configured not to give this

(alias)

(unless you have configured not to give this information)

A simple mechanism to call an account head by another name. For example, an account head by the name Tally Solutions Pvt Ltd. could also be called Tally 7.2. If you need to do so, simply open Tally Solutions Pvt. Ltd. as 'Name' and under 'alias' give Tally 7.2. Another possible example is International Business Machines, which is popularly abbreviated as IBM. In such a case, you might want to use IBM as an alias. For those of you who wish to continue with account codes, you may use this field to enter your codes. If an 'alias' is given, both 'Name' and 'alias' are available to you while entering a voucher. You may use either to affect the same account. If you do not want an alias, simply press <enter> in the blank field.

Tally permits you to create any number of aliases for a ledger name. Therefore, in the above example screen, you find the account name Tally Solutions Pvt Ltd with two aliases, viz., Tally 7.2, and 001005001.

1. Avoid the temptation to give many aliases just because the facility is available. Use it on need basis and not to cater to the whims of individuals.

More:

Currency of Ledger

Maintain Balances Bill-by-bill (Yes/No)

Accounts Information - Introduction

Page 30 of 106

Allocate to Cost-Centres (Yes/No)

Method of Calculation

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Currency of Ledger

 
 
 

Give the currency in which the ledger will be maintained. Tally allows you to maintain ledgers in any currency. The account will reflect amounts in the selected currency.

Note:

* You may always create a new currency by pressing <alt>+<C>.

* It is strongly advised that you maintain the currency of ledger as the base currency. Maintain foreign currency accounts only if you want its balance in that currency. You would normally need to maintain only foreign currency bank accounts and not other ledgers in foreign currency. When you maintain an account in base currency, it nevertheless allows you to enter transactions in any other currency. For details, please refer to the chapter on multiple currency

Advanced Information

(ONLY if the ledger is maintained in base currency). (The relevant options should have been activated in the company features)

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Maintain Balances Bill-by-bill (Yes/No)

 
 
 

Yes, if you wish to give a bill-wise break-up of the ledger balance including the opening balance. You may give any number of bills here. The option here would also determine the ability to track transactions according to bill references. The bill-by-bill concept in transactions would be discussed in detail under the Vouchers chapter.

The following information for all pending bills of the previous accounting period would be required when entering the Opening Balance:

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. Tally defaults to the last date of your previous accounting period, e.g., 31 March 2001. Change it, if necessary, to the actual date. To end your list of entries, leave the Date or Name blank.

Name

Give a name to which you can later refer when adjusting the bill. Typically, you would give the

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bill no or document number. Remember, the purpose of the break-up is to enable you to adjust it later when the relevant transaction is squared off.

Due date (or credit days)

Give the credit period or the date when the bill is due. You may give either. Tally automatically calculates the other. Another of those small conveniences that make life easier.

Note: During transaction entry, there would be another concept-that of effective date. If you opt for "using effective dates" instead of "bill dates" the due date would be calculated accordingly.

Amount

For the amount of the bill due.

You would give particulars of all the pending bills one by one. Tally fills in the difference between your Opening Balance, and the sum of the Bills, and reflects it as 'On Account' at the bottom of the screen. If all your bills exactly cover the Opening Balance, the On Account becomes NIL. You may have Bills totalling beyond the opening balance, in which case the On Account will accumulate aversely. In the example below, we have shown two bills 1000 and 1100 of 5000/- each. Now if the balance brought forward is 12000/- , the On Account amount will reflect 2000/- . If you obtain the bill particulars at a later date, you can always alter the ledger to put in the details, which will nullify the On Account.

to put in the details, which will nullify the On Account.   Copyright Tally Solutions Pvt
 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Allocate to Cost-Centres (Yes/No)

 
 
 

If you have activated Cost Centres in the Company Features [F11], you will be asked this information. Tally presumes that you would want Cost Centres for Revenue Accounts but not for non-revenue accounts like Assets and Liabilities. Hence, in this case you will find it set to No. If you want cost centre allocation to this account during voucher entry, give Yes. The cost centre concept is discussed separately.

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Inventory values affected?

This is applicable only in case your accounts are integrated with inventory. Accounts like sales and purchases would normally affect inventory values in which case set this field to Yes. For other accounts, set it to No. Tally 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.

Percentage of Tax (e.g. 5)

This is applicable only for ledgers falling under the group Duties and Taxes, or under any group for which 'Used for Calculation' is enabled. The Group Duties and Taxes is automatically used for calculation. It is internally set as enabled and will remain so regardless of whether you disable it.

You need to specify the rate of tax e.g. 5, 10, 12.5 etc. as a percentage. Do not give the percent symbol.

1. You may use an automatic Discount calculation facility by specifying a negative percentage. The process will involve creating a sub-group (preferably called Discounts), which has 'Used for Calculation' activated. Typically, this group would be created under Sales or Expenses. Now, ledger accounts similar to 'Discount 10%', and 'Discount 15%' may be created giving '-10' and '-15' as the 'Percentage of Tax', and the relevant 'Method of Calculation' as explained below.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Method of Calculation

 
 
 

There are four methods of calculating a duty.

1. Duty Based on Items – Tax based on Item Rate

2. Additional Duty

3. On Total Sales

4. Surcharge on Tax

Tax or Duty Based on Items Rate (or Excise Duty)

This type of account is suitable in cases where there are differential rates of duty/tax on items. In India, excise duty accounts would normally adopt this method. In the UK, VAT accounts would do likewise. When creating your Inventory item masters, you might specify Rate of Duty for each item. In your account books, you would open a ledger for the duty, possibly by the name VAT 17.5% or Excise Duty 12.5%. You will select this method to instruct Tally to pick up the Rate of Duty specified in your Inventory item master during invoice entry. If one or more items exist with the same rate of duty, then the amount is calculated using the total. Otherwise, it is calculated on total sales. For example,

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Your invoice lists:

Item A (Rate 10%) for 10000/-

Item B (Rate 12%) for 15000/-

Item C (Rate 10%) for 18000/-

Duty (VAT or Excise) will be calculated as follows:

10% on 28000/- 12% on 15000/- Total Duty

Additional Duty

2800/- (Item A & C) 1800/- (Item B)

4600/-

When excise duty is not enabled for invoicing purposes in Company Features [F11] (as applicable for many products in India), Additional Duty and Surcharge function alike. In case it is enabled, then Additional Duty is added to the 'Duty Based on Items' in the invoice to reflect the 'Total Duty payable'. Its method of calculation is explained under 'Surcharge'.

On Total Sales

As the type suggests, duty will be calculated on the total of individual values of the items. It does not consider the Rate of Duty specified for each item in your inventory masters.

It does not calculate duty on the current sub-total unless you have specifically opted for it in the company features. Hence, the two scenarios could be as follows:

When you have not opted for calculation on current sub-total:

Assuming that there are two items in the invoice:

Item A 10000/-

Item B 15000/-

Tax 2% will be calculated at 2% on total sales of 25000/- = 500/- tax amount following which you obtain a current sub-total of 25500/-.

If you now add another line, Tax 4%, it will calculate 4% also on 25000/- (on total sales) giving another 1000/- as tax.

If you opt for calculating on current sub-total:

The above Tax 4% will be calculated on 25500/- (25000+500) giving 1020/- .

Surcharge on Tax

Surcharge and Additional Duty are charged on the immediately preceding entry. A surcharge is treated as a percentage of the duty levied.Tally expects the preceding line in the invoice to be the duty on which surcharge is to be calculated.

Hence, in the above example if you have added a line Surcharge 10% it will appear as:

Item A

10000/-

Item B

15000/-

25000/-

Accounts Information - Introduction

Page 34 of 106

Tax 2%

500/-

Surcharge 10%

50/- (10% of 500)

If your invoice is as below:

Item A

10000/-

Item B

15000/-

25000/-

Tax 2%

Addl.Surcharge8%

500/-

Surcharge 10%

50/- (10% of 500) 4/- (8% of 50)

During invoice creation, this figure is used to calculate tax amount based on the method of calculation as well as specified in invoicing configuration.

( [F12] configure > Invoice Entry > Calculate tax on current sub-total?).

Though invoicing has been discussed separately in greater detail, we shall touch upon relevant aspects here.

Calculate tax on current sub-total: (Yes/No)

Tax here refers to VAT or sales tax. During voucher entry in Invoicing mode, you may enter additional ledger accounts after giving the list of items in the invoice. Typically, the ledgers would pertain to duties, taxes, delivery charges, other charges and discounts. Sales Tax may be calculated on the total of item values, viz., Inventory sub-total, or you may specify it to calculate on the immediately preceding sub-total. In the latter case, the immediately preceding sub-total could include any entry that you may have passed, e.g. Delivery Charges. Tally does not make any presumptions and would not verify its appropriateness or otherwise.

Normally, you would not answer Yes to this option. The facility of Surcharge being available, the need to calculate on current sub-total is fulfilled by it. Hence, use it sparingly, maybe only when you have both Excise Duty and Sales Tax (on Excise Duty) applicable on an item.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

UK VAT Analysis

 
 
 

Tally produces the VAT Analysis Report in the British VAT Return Form 100 format with Box 1 to 9. It is automatically produced for a quarter ending the last date of voucher entry and picked from the sales and purchase voucher entries.

Set-up required to produce the return

The set-up is more detailed if you deal with the European Union.

Where Boxes 2, 8 and 9 are not applicable

(Businesses not trading in Goods or related services with the EEC. – Domestic trade only or Exports to other countries or supply of services, like consultancy, to EEC. In short, where Boxes 2, 8 and 9 are not applicable.)

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1. Activate British Style VAT Returns in F11:Company Features.

Group Name Under which EEC Debtors are classified. Select 'Not Applicable'.

Group Name Under which EEC Creditors are classified. Select 'Not Applicable'.

2. Use Voucher Classes for sales to automate sales invoice entry if required.

3. Ensure that all VAT entries are made through Purchase, Sales, Debit Note and Credit Note vouchers only. VAT entries made in other voucher types like Payment, will not be included in the VAT Return.

Note: The set up determines the figures that go into the VAT Analysis Report. Hence, check the figures and the entries carefully before copying them into your VAT Return. Adjustment items like Fuel scale charges are typically entered through a journal and would not be reflected in the Report. For this, you might have to adjust the Report figures.

More:

VAT Analysis Report

Businesses trading in goods with the EEC and not services

VAT Analysis Report

Print VAT Analysis Return and Reports

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

VAT Analysis Report

 
 
 

The VAT Analysis, in the broad format of Form 100, can be displayed and then statements printed through the Display option in Gateway of Tally.

Display > VAT Analysis

Drill down to further details in each box. Press <enter> or double click the box.

Box 1

Gives VAT due calculated from the sales vouchers. Double click on the row or press <enter> to view Output Details.

Output Details

The sales entries are displayed in columns showing break-up of net value of sales on which VAT is applicable or not. The VAT charged on each invoice is shown in a column. VAT calculated but not applied is shown for EC Sales information for items on which VAT is charged in the UK. This is directly relevant for Box 2 purposes. The amount shaded green is brought to the VAT box.

Box 2

Not relevant if there are no inputs from EEC.

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The EC VAT calculated but not applied is brought in. It is also included in Box 4, which is the total VAT Charged and EC VAT Calculated (not applied).

Box 3

It is total VAT due by summing up Box 1 and 2 figures.

Box 4

It is the VAT claimable calculated from Purchase Voucher entries. It includes the Box 2 figure. Press <enter> to view input details.

Box 5

Net VAT due to be paid or refunded being the difference between Boxes 3 & 4.

Box 6

Total Net Value of sales and other outputs as obtained from the sales voucher entries. Drill down to see Output Details.

Box 7

Total Net Value of purchases and other inputs as obtained from the purchase voucher entries. Drill down to see Input Details.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Businesses Trading in Goods with the EEC and Not Services

 
 
 

Where Boxes 2, 8 and 9 are applicable

(If you deal with the EEC, it is advisable to group your EEC Customers separately under a sub group of Sundry Creditors. Take care to group only VAT registered companies in these groups as they would affect Box 8 and 9 as well as the EC Sales List. Unregistered companies or individuals (Distance Sales) should be grouped separately and treated like UK companies.)

1. Activate British Style VAT Returns in F11:Company Features.

Group Name Under which EEC Debtors are classified. Select the group name, e.g. EEC Customers.

Group Name Under which EEC Creditors are classified. Select the group name, e.g., EEC Suppliers.

2. Alter the group Sales Accounts to enable Used for Calculation. Set it to Yes.

3. Now create or alter the ledger account used for recording sales of Goods (not services) to EEC Countries. Activate percentage of calculation and set it to the standard rate of VAT, e.g. 17.5. Set the method of calculation to any one method.

4. If you have sales for items with different VAT rates, create separate sales accounts for

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them and give percentages accordingly.

5. Follow the same steps for EEC Purchases accounts.

6. Use Voucher Classes for sales to automate sales invoice entry if required.

7. Ensure that all VAT entries are made through Purchase, Sales, Debit Note and Credit Note vouchers only. VAT entries made in other voucher types like Payment, will not be included in the VAT Return.

Businesses providing services to the EEC in addition to Goods as well as exporting to other countries

(If you deal with the EEC, it is advisable to group your EEC Customers separately under a sub- group under Sundry Debtors. Likewise, group EEC Suppliers under a separate sub-group of Sundry Creditors.)

1. Activate British Style VAT Returns in F11:Company Features.

2. Group Name Under which EEC Debtors are classified. Select the group name, e.g. EEC Customers.

3. Group Name Under which EEC Creditors are classified. Select the group name, e.g., EEC Suppliers.

4. Alter the group Sales Accounts to enable Used for Calculation Set it to Yes.

For Goods follow the instructions in 2 above.

For sale of services to EEC Countries, do not give any percentage, i.e. give 0.

For export sales, do not give any percentage.

5. Follow the same steps for EEC Purchases accounts.

6. Use Voucher Classes for sales to automate sales invoice entry if required.

7. Ensure that all VAT entries are made through Purchase, Sales, and Debit Note and Credit Note vouchers only. VAT entries made in other voucher types like Payment, will not be included in the VAT Return.

Note: The set up determines the figures that go into the VAT Analysis Report. Hence, check the figures and the entries carefully before copying them into your VAT Return.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

VAT Analysis Report

 
 
 

The VAT Analysis, in the broad format of Form 100, can be displayed and then statements printed through the Display option in Gateway of Tally.

Display > VAT Analysis

Accounts Information - Introduction

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Drill down to further details in each box. Press <enter> or double click the box.

Box 1

Gives VAT due calculated from the sales vouchers. Double click on the row or press <enter> to view Output Details.

Output Details

The sales entries are displayed in columns showing break-up of net value of sales on which VAT is applicable or not. The VAT charged on each invoice is shown in a column. VAT calculated but not applied is shown for EC Sales information for items on which VAT is charged in the UK. This is directly relevant for Box 2 purposes. The amount shaded green is brought to the VAT box.

Box 2

The EC VAT calculated but not applied is brought in. It is also included in Box 4, which is the total VAT Charged and EC VAT Calculated (not applied).

Box 3, Box 4

It is the VAT claimable calculated from Purchase Voucher entries. It includes the Box 2 figure. Press – It is total VAT due by summing up Box 1 and 2 figures.

<enter> to view input details.

Box 5

Net VAT due to be paid or refunded being the difference between Boxes 3 & 4.

Box 6

Total Net Value of sales and other outputs as obtained from the sales voucher entries. Drill down to see Output Details.

Box 7

Total Net Value of purchases and other inputs as obtained from the purchase voucher entries. Drill down to see Input Details.

Box 8

This shows the sale of goods to EEC customers. The figure depends upon correct classification of EEC customers and activation of percentage of calculation in sales ledger accounts. It is the total of the amounts in the Nett Value (VAT Applicable) column in the Output Details for EC Member Countries.

Note: It will not include those items that although have a VAT Rate specified, but whose sale account allocation does not have a percentage of calculation. Hence, it is important to allocate EC Sales to a separate Sales Account for which percentage of Calculation has not been set to 0.

On the other hand, services supplied to EC Customers are not to be considered and hence should be allocated to a sales account for which the percentage of calculation is 0. A small example of allocations is given at the end of this document.

Drill down to view Output Details for EC Member Countries. Select F4:EC Sales List to view the sales to VAT registered EC customers.

Accounts Information - Introduction

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Box 9

This reflects the purchase of goods from EEC Suppliers. The same note of caution as for Box 8 applies.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Print VAT Analysis Return and Reports

 
 
 

Display the Return and click on the Print Button or press <Alt>+<P>. The Print option cycles through all reports including EC reports.

Example:

Create the following groups:

1. EC Customers under Sundry Debtors

2. EC Suppliers under Sundry Creditors

3. EC Customers for services

4. Export Customers

Note: Alter the Groups Sales Accounts and Purchase Accounts to change the setting for the question Used for Calculation to Yes.

Create the following Ledger accounts (alter if they already exist).

Under the Group Sales Accounts

EC Sales – Goods : where Inventory Values are affected? is set to Yes and Percentage of Calculation – 17.5 Method of Calculation – On Total Sales.

EC Sales – Services : where Inventory Values are affected? is set to Yes and Percentage of

Calculation–0.

Export Sales: where Inventory Values are affected? is set to Yes and Percentage of Calculation – 0.

Sales – UK: where Inventory Values are affected? is set to Yes and Percentage of Calculation – 17.5 Method of Calculation – On Total Sales.

Under the Group Purchase accounts

EC Purchases - where Inventory Values are affected? is set to Yes and Percentage of Calculation – 17.5. Method of Calculation – On Total Sales.

VAT Accounts under the group Duties and Taxes

1. Output VAT – with percentage of calculation 17.5% Method of calculation – Based on Item

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Rate

2. Output VAT – 0%

3. VAT Exempt

4. Input VAT.

Classes (to automate invoice entry)

Alter the Sales Voucher Type and create the following classes:

VAT Sales – Ledger Allocation: Sales – UK 100% Additional ledger allocation: Output VAT Value Basis 17.5%

EC Sales (Goods) – Ledger Allocation: EC Sales – Goods. Additional ledger allocation: VAT 0%

EC Sales (Services) – Ledger Allocation: EC Sales – Services. Additional ledger allocation: VAT Exempt

Export – Ledger Allocation: Export Sales. Additional ledger allocation: VAT Exempt

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Interest Calculations

 
 
 

Tally ies 7.2 allows you to obtain reports on interest calculated by Tally based on the instructions you furnish. Interest figures are typically desired in the following situations:

1. On outstanding balance amounts

2. On outstanding bills/invoices/transactions (Receivable and payable)

Tally gives you an exhaustive capability to obtain interest implications on both.

Set-up required

You first need to activate the feature for the Company and then activate it for each specific ledger account for which interest is to be calculated.

F11: Company Features contains the option to activate Interest Calculations for the Company.

Look at the Accounting Features in this screen. The questions asked of you are:

Activate Interest Calculations? Set it to Yes.

Use Advanced Parameters? Set it to No.

We will discuss Advanced Parameters separately.

More:

Simple Mode - where advanced parameters are not applicable

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Advanced Mode

Interest Calculation Reports

Interest calculation on Ledger Balances (e.g. Loans)

Statement of Interest due on invoices

Group Interest Calculation

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Simple Mode (Where advanced parameters are not applicable)

 
 
 

Steps required

1. Activate and specify interest calculations in ledger masters.

2. Enter Interest details in Vouchers (only in case of transaction by transaction/Bill-by-bill).

3. View Interest reports.

Interest calculations on outstanding balances

Activate and specify interest calculations in ledger masters

You will have to alter existing ledger accounts to permit interest calculations on them. The same operation will apply when creating a new ledger account.

Interest calculation on outstanding balances is allowed for any ledger account. You simply specify the interest rate and style of calculation. Nothing is required to be done for interest during voucher entry.

You might want to activate this on a Bank Account. Let's take an example:

1. Alter a bank account e.g. Bank Ltd.

2. Tab (or press <ENTER>) down to the option Activate Interest Calculation?

3. Set it to Yes.

4. Now you have to set the Interest Parameters – the basis on which interest will be calculated for this ledger account.

5. Only two pieces of information have to be given:-

Rate – give a rate say 15%

Style – this the basis on which the rate is applied.

There are 4 options

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6. 30-day month

7. 365-day Year

8. Calendar Month

9. Calendar Year

Select the one applicable to you. For this example, select 365-day Year.

Accept the screen.

You are now ready to view the amount of interest that could be charged by the bank.

Report on Interest Calculated on outstanding balances

The Interest Calculations Report can be displayed and printed through the Display option in Gateway of Tally.

Display > Statements of Accounts > Interest Calculations > Ledger > Bank Ltd

Note that interest is calculated with respect to each change in balance figures. (A report has been reproduced under the Advanced Parameters section below).

Interest calculation transaction by transaction

Activate and specify interest calculations in ledger masters.

Transaction by transaction or bill-by-bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors.

Take an example to explain this feature:-

1. Alter a customer account, e.g. CP Ltd (under the group Sundry Debtors or one of its sub- groups)

2. Set Yes to Activate Interest Calculation.

3. The Interest Parameters now have three lines to answer.

4. Calculate Interest Transaction-by-transaction - Set it to Yes

5. Over-ride Parameters for each transaction - Set it to No. If set to No, you are not allowed to change interest parameters in voucher/invoice entry. If set to Yes, you can change the interest parameters during entry.

Report on Interest Calculated on outstanding transactions/bills

Display > Statements of Accounts > Interest Calculations > Ledger > CP Ltd

The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the transaction. Press Detailed to see the calculation. (A report has been reproduced under the Advanced Parameters section ).

has been reproduced under the Advanced Parameters section ). file://C:\Documents and Settings\ACCOUNT\Local

Accounts Information - Introduction

Page 43 of 106

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Advanced Mode

Pvt Ltd. 1988-2005. All rights reserved. Advanced Mode Set Use Advanced Parameters to Yes in F11:Company

Set Use Advanced Parameters to Yes in F11:Company Features.

Advanced Parameters - Interest Calculations on outstanding balances

Follow the steps given in Simple Parameters.

The following extra options now become available:

1. You can now have multiple rates of interest.

2. Choice of balances – All Balances, Credit Balances only, Debit Balances only.

3. Applicability period – when is the interest applicable from and to which date.

4. Choice of methods for Rounding off of interest amounts.

A brief explanation on each is called for:

Balances

Interest can be calculated on all outstanding balances whether debit or credit. You would like to select only credit balances in case of accounts like Bank accounts if you want to know the interest that the bank might charge on overdrawn balances.

Applicable from

The date from which the rate is applicable to a specific date. If left blank then it is up to the last date.

Rounding off

Whether the amount is to be rounded off normally or upward or downward. You need to give the rounded to amount. e.g. round off upwards to the nearest 10.

The advanced parameters are particularly useful where interest rates change from time to time. You may want to set your Bank Ltd interest parameters as follows:

Accounts Information - Introduction

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Accounts Information - Introduction Page 44 of 106 Display Report – Interest on Outstanding Balances Display

Display Report – Interest on Outstanding Balances

Display > Statements of Accounts > Interest Calculations > Ledger > Bank Ltd

> Interest Calculations > Ledger > Bank Ltd Advanced Parameters - Interest calculation transaction by

Advanced Parameters - Interest calculation transaction by transaction

Activate and specify interest calculations in ledger masters.

Follow the steps given in Simple Parameters.

The following extra options now become available:

1. You can now have multiple rates of interest.

2. You can override advanced parameters during voucher entry. Hence, each entry could have different parameters.

3. Choice of balances – All Balances, Credit Balances only, Debit Balances only.

4. Applicability - This actually applies to the viewing of the statement and not the levy of interest.

5. Calculate from - You can decide whether interest is to be levied from the Due Date or from

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the Effective Date of the transaction (or the voucher date if effective date is not activated) or even date ranges specified during voucher entry.

6. Choice of methods for Rounding off of interest amounts.

Set up the Interest Parameters for CP Ltd, a customer as follows:

the Interest Parameters for CP Ltd, a customer as follows: Note: * To obtain the option

Note:

* To obtain the option 'Calculate From Date Specified during Entry', you must have Override advanced

parameters set to Yes. The option is required if you want to specify interest to be calculated at different rates for different periods.

* In case any of the other two options are selected, viz, Due Date of Invoice/Ref or Eff. Date of Transaction,

you will not have variable rates for different periods but for the same period. Hence, it could be useful as a

surcharge or penalty for past due dates for example.

* If you choose to override parameters then information would be asked during voucher/invoice entry. The interest information is required after the bill-wise details have been entered.

Report on Interest Calculated on outstanding transactions/bills

Display > Statements of Accounts > Interest Calculations > Ledger > CP Ltd

Press Detailed to see the calculation and the period. Previous transactions are calculated from Effective date of Transaction as a default. Date Specified During Entry has not been used.

Note: Part monies received have been accounted for and interest calculated on the balance.

Accounts Information - Introduction

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Accounts Information - Introduction Page 46 of 106 A look at 'Calculate From Dates Specified during

A look at 'Calculate From Dates Specified during Voucher Entry

You have set up the Interest Parameters for CP Ltd to calculate on Dates specified during Voucher Entry.

We will take one invoice and put in the interest information.

will take one invoice and put in the interest information. On 28-2-99, the Interest Report will

On 28-2-99, the Interest Report will display the calculation as below:

Display > Statements of Accounts > Interest Calculations > Ledger > CP Ltd

> Interest Calculations > Ledger > CP Ltd Book Entries and adjustment of interest file://C:\Documents

Book Entries and adjustment of interest

Accounts Information - Introduction

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We have seen the reports on interest amounts calculated in different ways but these have not been brought into books! They simply give you the interest implications. You must book them now.

How to enter the calculated interest amounts?

You must use Debit Notes and Credit Notes with Voucher Classes

You will use Debit notes for Interest receivable and Credit Notes for Interest payable.

Interest is calculated on Simple or Compound basis and separate classes should be used for them.

Set-up Debit/Credit Note Classes for interest entries

We will set up Debit Notes. Credit Notes will behave the same way. Alter the Voucher Type Debit Note. Tab down to the field Class.

Simply type the name of the Class. Type Simple Interest.

Simply type the name of the Class. Type Simple Interest. Set the other options as above.

Set the other options as above.

Likewise, create a Class – Compound Interest and set Yes to Amounts to be treated as Compound Interest.

Accept the Voucher Type and return to the Gateway of Tally. Create a ledger account Interest Received under Group Indirect Income.

Voucher Entry for booking Interest

1. Go to Voucher Entry

2. Select F7:Journal Debit Note Class – Simple Interest

3. A Cost Centre Class is also selected if required. Marketing Expenses Class has been selected here.

There are two situations for interest adjustment:-

4. Billwise interest

Simple Interest – Interest amounts are not debited onto the same bills. Create a fresh reference for it.

Compound Interest – Amounts are auto-debited to the selected bills. Bill-wise details will not appear in this case.

5. Interest on balances only

Bill-wise interest entry

Debit CP Ltd

Credit Interest Received

Accounts Information - Introduction

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When you debit the party account, a list of bills for which interest is applicable pops up. Select the bills to adjust. Note that even cleared bills appear.

the bills to adjust. Note that even cleared bills appear. Select Demo/45/98 and Demo/6/98. Select <end

Select Demo/45/98 and Demo/6/98. Select <end of list> . The debit amount is filled up with the total. Select New Ref in the bill-wise allocation. In the interest sub-screen, ensure that the rate of interest is 0. Now Credit Interest Received. The amount is already filled in.

Your voucher will resemble the one below:

already filled in. Your voucher will resemble the one below: Entries for compound interest are exactly

Entries for compound interest are exactly the same as for Simple Interest where all you do is select the Voucher Class Compound Interest. Also the Bill-wise details popup sub-screen does not come up as the amounts are added onto the bills.

Select Demo/28/98 and Demo/31/98 from the list and complete a Debit Note.

Now display Outstandings for CP Ltd

Note the contents:

Accounts Information - Introduction

Page 49 of 106

Accounts Information - Introduction Page 49 of 106 The Bill references Demo/28/98 and Demo/31/98 are invoices

The Bill references Demo/28/98 and Demo/31/98 are invoices onto which interest has been compounded.

A new Reference no 2 has been created for Simple Interest due from CP Ltd.

Entries for Interest on Balances only

Again, the issues are Simple and Compound Interest

Compound Interest

Make the following entries in a Debit note with Compound Interest Voucher Class

Debit Bank Ltd

the amount is automatically filled up with the calculated interest

Credit Interest Received

And nothing needs to be done! The Bank Account has been increased by the amount of interest due and the Income account of Interest Received also credited.

Simple Interest

Make the same entry as above.

However, since it has the effect of increasing the Bank Ltd account with the amount due (compound effect), you must make a journal entry to reverse it. The reversal entry would be something like this:

Debit Interest Receivable (a current asset account)

CreditBank Ltd

Use a normal Journal voucher for this entry.

We have to necessary go this route to take advantage of the auto filling of the interest amount which can appear only when we use the Bank Ltd account in Debit Note in the first place.

use the Bank Ltd account in Debit Note in the first place. C opyright Tally Solutions

Accounts Information - Introduction

Page 50 of 106

Interest Calculation Reports

Introduction Page 50 of 106 Interest Calculation Reports Interest Calculation reports are automatically produced if

Interest Calculation reports are automatically produced if the feature is activated In Company Features and the parameters are set for individual ledger accounts. (See Interest Calculations for details on activating and setting up Interest Calculations).

There are two types of reports, one pertaining to interest on balances of accounts like loans, and the other interest on overdue invoices.

Interest reports are available for individual ledger accounts as well as for Groups.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Interest calculation on Ledger Balances (e.g. Loans)

 
 
 

Display > Statements of Accounts > Interest Calculations > Ledger

Select Account, e.g., Bank Loan Account

Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not be confused to mean an Income. It only means that it is payable and is a liability. The figure is illustrative only and you will need to account for the interest expense and liability through a journal entry.

To ease interest recording, Tally has an interest template, a special voucher class in Debit Note and Credit Notes.

The interest screen will appear similar to the one below:

Interest calculation on Bank Loan account

to the one below: Interest calculation on Bank Loan account Copyright Tally Solutions Pvt Ltd. 1988-2005.

Accounts Information - Introduction

Statement of Interest Due on Invoices

Page 51 of 106

Statement of Interest Due on Invoices Page 51 of 106 You can calculate interest on each

You can calculate interest on each invoice for the period it is outstanding wholly or partly. Transaction by transaction or bill-by-bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors. Bill-wise details should be active for the company and the party.

The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the transaction. Press Detailed to see the calculation.

Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger

Select Account, e.g., Peutronics Bangalore

> Ledger Select Account, e.g., Peutronics Bangalore Interest is re-calculated with every change in balance

Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not be confused to mean an Income. It only means that it is payable and is a liability. The figure is illustrative only and you will need to account for the interest expense and liability through a journal entry.

To ease interest recording, Tally has an interest template, a special voucher class in Debit Note and Credit Notes.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Group Interest Calculation

 
 
 

Gateway of Tally > Display > Interest Calculations > Group

Accounts Information - Introduction

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Select a Group,e.g., Loans (Liability)

Page 52 of 106 Select a Group,e.g., Loans (Liability) The Group Interest Calculation statement is a

The Group Interest Calculation statement is a list of all accounts and sub-groups belonging to the selected group that displays the current balance in each account or sub-group and the total interest.

The Cr in the interest amount should not be confused to mean an Income. It only means that it is payable and is a liability. The figure is illustrative only and you will need to account for the interest expense and liability through a journal entry.

To ease interest recording, Tally has an interest template, a special voucher class in Debit Note and Credit Notes.

Drill down to the Ledger level Interest report.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Specifying Closing Stock Values

 
 
 

Closing stock values have to be specified when accounts and inventory are not integrated. Tally allows you to specify closing stock values even if your books are integrated. It would simply ignore the specified figure so long as you maintain the integration. If and when you select to separate the books, the specified values would automatically be considered.

To enter the closing stock as on a specific date, you must alter the ledger account. Simply follow the ledger alteration procedure or go from the Balance Sheet via Current Assets. Assuming that you had a ledger account 'Stock ' under the group Stock-in-hand the information would be as follows

Accounts Information - Introduction

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Accounts Information - Introduction Page 53 of 106 You are allowed to alter the opening balance

You are allowed to alter the opening balance as well as specify/alter closing balances on different dates. You would typically specify Balance Sheet dates so that the Balance Sheet reflects the amount of that date. Hence, your Balance Sheet of 31th October 97 (or of any date up to 30 May 2001) would report Closing Stock worth 127983. The Balance Sheet as on 31st March 2002 (or any day between 1st July 2001 to 31st March 2002) would report the stock value of 15000.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Effective Date for Reconciliation (Bank Accounts only)

 
 
 

To be given for accounts falling under the Bank Accounts Group (or Bank OCC a/c). Default is the books beginning date.

(or Bank OCC a/c). Default is the books beginning date. This is the date from which

This is the date from which you can reconcile your bank account in your books with the bank statements. Normally, it would the beginning date itself. However, you could have imported data from a previous version of Tally or from any other system (where the reconciliation process was not available or was different). In that case, you may not need to reconcile the bank account with your bank statements from the very beginning. Give the date from which you want the reconciliation facility to be activated. Then, previous entries will not appear for reconciliation.

Then, previous entries will not appear for reconciliation. Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Mailing & Related Details

Accounts Information - Introduction

Page 54 of 106

Accounts Information - Introduction Page 54 of 106 Applicable basically for party accounts like Sundry Debtors,

Applicable basically for party accounts like Sundry Debtors, Creditors and Branch Divisions. This is also available for loan accounts. You are to give the party's particulars here. These are used in mailing outputs like statement of accounts.

Position Index in Reports

This is viewed when you press [F10]:Chg Sort when in alteration mode.

If this done once, it remains so till you deactivate it by pressing [F10]:Skip Sort.)

The topic has been discussed under the chapter "Groups" under Advanced Usage. Please refer that Chapter for the concept. The default setting is 1000 for all ledgers. Please note that the index is relative to other ledgers and groups within a parent group. Hence, the position of a ledger may be changed within the Group to which it belongs, by changing the number 1000.

Any change would not position the ledger outside the parent group. If a group has children comprising of many groups (sub-groups) and ledgers, the position index of the children would determine their position within the parent group. An example is given below:

Prior to any change in their indices, the ledgers and the sole group 'Communication Expenses' under the group 'Indirect Expenses' are displayed as below. (Ledgers are directly under the group Indirect Expenses and not under Communication Expenses sub-group):

Gateway of Tally > Group Summary > Indirect Expenses

Indirect Expenses

Group Summary > Indirect Expenses Indirect Expenses The position index of Communication Expenses (it is a

The position index of Communication Expenses (it is a group as indicated by its bold font) is 290 and all ledgers 1000. You would notice that because of this, Communication Expenses is at the top, and the others sorted alphabetically as they have the same index of 1000.

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We now change the index of Motor Car Expenses to 280 and of Staff Welfare to 900. We now see Motor Car Expenses at the top, followed by Communication Expenses and Staff Welfare. Then the rest with 1000 would be in alphabetic order.

1. You can change the index from the display screen itself by positioning the cursor on the particular account and pressing <control>+<enter> to bring up its master to alter.

Indirect Expenses

to bring up its master to alter. Indirect Expenses   Copyright Tally Solutions Pvt Ltd. 1988-2005.
 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Expert Usage

 
 
 

Multiple ledgers

Create ledgers in multiple mode

1. Default values are inserted for Cost Centres and Inventory values are affected options. The defaults are : Cost Centres – for revenue accounts – Yes, for non-revenue accounts – No. Inventory Values are affected – Yes for Sales and Purchase Accounts, No for others.

2. However, you are encouraged to first create a ledger under each group in single mode and then the rest of the ledgers in multiple mode. Tally will set the settings of that ledger as default for other ledgers created in multiple mode. Gateway of Tally > Accounts Info > Ledgers > Multiple Creation

Accounts Information - Introduction

Page 56 of 106

Accounts Information - Introduction Page 56 of 106 Under Group Give the name of the group
Accounts Information - Introduction Page 56 of 106 Under Group Give the name of the group

Under Group

Give the name of the group under which you want to create the ledgers. Here, we have selected Bank Accounts 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.

Name of Ledger

Type in the ledger name.

Under

This field defaults to the parent group selected for 'Under Group' e.g. Bank Accounts. All entries in this column would be the same. Your cursor skips this column. However, in case the 'Under Group' field is 'All Items', this column is not skipped and you may specify the group. You are then allowed to even create a new group.

Accounts Information - Introduction

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Accounts Information - Introduction Page 57 of 106 Opening Balance For the opening balance of the

Opening Balance

For the opening balance of the ledger account. This is the balance remaining when you first put your books on Tally, i.e., the date of beginning of books. If you have opted to maintain balances bill-by-bill, you must give the bill details. (for more on this refer to the explanation given above under single mode ledger creation)

Dr

Specify whether the Opening Balance is Debit or Credit. Tally follows the normal accounting principals of accounting. (For details, refer to the explanation under single mode ledger creation).

More:

Alter Ledgers in multiple mode

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Alter Ledgers in Multiple Mode

 
 
 

Gateway of Tally > Accounts Info > Ledgers > Multiple Alter > Select Group

The screen is exactly similar to the multi-mode creation screen. You are allowed to alter any field.

Delete ledgers in multiple mode

You are not allowed to delete a ledger from this mode. Select single alter mode to delete.

Explanation on Buttons

F3:Company: To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Cmp: To work on the same report of another company. Available only in display mode.

F4: Parent:To move the cursor to the field 'Under Group'

F4: New Parent: To bring up the list of Groups to select a new parent Group.

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Zero Op Bal:To nullify (change to zero) all opening balances in this group.

F6: Skip names: For faster data entry when you do not need to the names of ledgers. The cursor will not go to that column. Toggle to 'Edit names'.

F7:Skip Parent: For faster data entry when you do not need to alter the parent Group. The cursor will not go to the column 'Under'. Toggle to 'Edit Parent'.

F8:Skip Details: The cursor will not go to the columns Opening Balance and Dr/Cr. Toggle to 'Edit Details'.

F9:Show Closing:Closing Balances replace Opening Balances. This is available only in alter mode. Closing balance is not alterable and the cursor skips the field.

F10:Chg Sort:To display a column of sorting position indices. Toggle to 'Skip Sort'. You may change display positions of ledger accounts under the group. (refer to the discussion on the subject in Advanced Usage).

Groups, Ledgers, Cost Categories, Cost Centres:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features:To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure:To change configuration of master information.

Note: Configuration changes affect all companies whereas Features changes affect on the current company

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Credit Limits

 
 
 

Credit limits can be specified for any party account, viz, any account falling under the groups Sundry Debtors and Sundry Creditors. Accounts under sundry creditors are permitted because there can be a two-way trade with a party even if it is classified as a creditor or debtor. Classification is done on the basis of the major role.

More:

How to set Credit Limits

Effect of setting credit limits

Exceeding Credit Limits

Effect of setting credit limits Exceeding Credit Limits Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

How to Set Credit Limits?

Accounts Information - Introduction

Page 59 of 106

Credit amount limits and credit periods

Page 59 of 106 Credit amount limits and credit periods If you do not set credit

If you do not set credit limits, you can still make invoices and give credit periods at the time of invoicing. However, that may not be desirable, especially in a decentralised environment. Therefore, to minimise errors during invoicing, you might prefer to set these important terms beforehand.

Gateway of Tally > Accounts Info > Ledgers > Credit Limits

Select the group of ledgers for which to set credit terms

You set credit limits for both amounts and periods here.

You set credit limits for both amounts and periods here. You can set the amount limits

You can set the amount limits in foreign currency if you wish for customers who are usually invoiced in foreign currency.

Credit Periods are in days only and are calculated from the effective date. If a separate effective date field appears in your voucher, the credit period is from the effective date, which might differ from the voucher date. If the voucher date is the only date field in the voucher, then it is also the effective date and the credit period is from this date.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Effect of Setting Credit Limits

 
 
 

The effect of setting credit limits is that during voucher entry (also invoice entry), the credit terms are filled up by the pre-set figures. If the voucher configuration (through F12) is set to disallow modifications of all fields during voucher entry, the cursor skips these fields and modification is not permitted. However, the configuration is set to permit modifications to all fields, alteration of the pre-filled fields is allowed.

The current balance and the credit limit of the party are displayed in the order and invoice entry forms, which is helpful to assess the amount acceptable.

forms, which is helpful to assess the amount acceptable. Copyright Tally Solutions Pvt Ltd. 1988-2005. All

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Exceeding Credit Limits

Accounts Information - Introduction

Page 60 of 106

Accounts Information - Introduction Page 60 of 106 During invoice or order entry, if the credit

During invoice or order entry, if the credit amount limit is exceeded, the voucher entry does not proceed further. You have two choices at this stage:

1. Enter a lower value so that the entry can be completed.

2. Abandon the current entry and obtain authorization to increase the credit amount limit in the Credit Limits set-up screen. This is controlled activity and will depend on the security permissions for altering credit limits.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Introduction

 
 
 

Cost Centres

Tally's concept of Cost Centres allows an additional dimension to a transaction. While a ledger account would indicate the nature of a transaction, it would not readily disclose, except in the narration, which part of an organization was involved.

By providing cost centres, a transaction can be allocated to it which would then enable extraction of all transactions for a cost centre. Hence, a cost centre can be said to be any unit of an organisation to which transactions (generally revenue) can be allocated. When only costs or expenses are allocated to these units, they are referred to as cost centres.

Tally gives you the cost centre break-up of each transaction as well as details of transactions for each cost centre. When you also allocate income to the units, they become Profit Centres. You can now obtain a Profit and Loss account of each such Profit Centre. For your purposes, the terms Cost Centre and Profit Centre are interchangeable.

Examples of cost centres:

1. Departments of an organisation, e.g., Finance, Manufacturing, Marketing, etc.

2. Products of a company, e.g., Tally dss 4.5, Tally eis 5.4,Tally ees 6.3, Tally ies 7.2 etc.

3. Even individuals like, Salesman A, Salesman B, etc.

Use of Cost Centres

Quite like the Groups/Ledger classification of accounts, you can classify your cost centres too. Hence, you may have Primary Cost Centres and several layers of cost centres under each

Primary Cost Centre. e.g.

Primary cost centres = Finance, Manufacturing, Marketing

Under Marketing, you may wish to create the company's sales executives as cost centres. This would be so, if you need to keep track of a sales executive's performance - cost and revenue generated. Hence, you would have the following cost centre structure (shown only for Marketing

Accounts Information - Introduction

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Department):

Primary cost centre - Marketing

Under marketing:

Salesman APrimary cost centre - Marketing Under marketing: Salesman B Salesman C You may allocate expenditure incurred

Salesman BPrimary cost centre - Marketing Under marketing: Salesman A Salesman C You may allocate expenditure incurred

Salesman Ccentre - Marketing Under marketing: Salesman A Salesman B You may allocate expenditure incurred on sales

You may allocate expenditure incurred on sales by the salesmen, as well as the sales generated by them, directly to their cost centres. The allocation is done online at the time of transaction entry itself. This prevents period end allocation problems when you find a large number of transactions not allocated.

Of course, you would by now have assumed, Tally allows modification of wrong allocations at any time by alteration of entries. (Facility available to authorised users only). By allocating your expense and sales transactions to the salesmen you have set up a valuable information system to know the efficiency and effectiveness of the salesmen. Your actual screens would appear thus:

of the salesmen. Your actual screens would appear thus: More: Cost Categories (For advanced usage only)

More:

Cost Categories (For advanced usage only)

How to manage and operate Cost Centres

Alter a Cost Centre

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Cost Categories (For advanced usage only)

 
 
 

Cost Categories have been introduced for organisations requiring allocation of resources to parallel sets of cost centres. Such organisations would usually be project oriented.

1. Most organisations would not need cost categories at all. Proper use of Cost Centres itself would give you the same benefits. Cost categories would increase your data entry work as well as complexity. Hence, before opting for it, please evaluate carefully whether you actually need cost categories. Always attempt to first use cost centres alone.

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Use of Cost Categories

If it were not for Cost Categories, there would be only one set of cost centres, e.g., only one set of Primary Cost Centres with each Primary cost centre having its own subsidiaries. By using Cost Categories you may allocate, in parallel, a transaction to more than one set of cost centres. Its use becomes apparent with the following example: Let us extend the above example itself. The Primary Cost Centres Marketing, Finance and Manufacturing can now belong to a category - Departments. The Salesmen A, B & C can be cost centres under a Category - Executives. Similarly, you can create a new Cost Category 'Projects' under which cost centres Airport construction, Road construction and Buildings may be created. The classification would look somewhat like the matrix below:

Cost Categories:

Departments

Executives

Projects

Cost Centres:

Marketing

Salesman A

Airports cont.

Manufacturing

Salesman B

Roads const.

Finance

Salesman C

Buildings

You may specify a cost category to allow allocation of only revenue items or items of both revenue and capital nature. In this example, we would allow both for Departments and Projects categories and only revenue for Executives.

Now, Salesman A incurs conveyance expenses of 1000/- . If he has incurred it for marketing, allocate this amount to the cost centres Marketing and his own cost centre Salesman A. (You would do it while entering a payment voucher debiting Conveyance and credit Cash. If the salesman now incurs expense for the project Buildings, you would allocate to the cost centres Salesman A and Buildings.

You may allocate an expense to one or more cost centres and it is not essential to always allocate to all cost centres. An expense can remain unallocated to other cost centres.

If you did not have cost categories, you would have been able to allocate the expense to either the Project Buildings cost centre or Salesman A and not to both. In such a case, you would not obtain the third dimension.

Hence, you are able to obtain details of conveyance incurred by Salesman A on Marketing as well as on Buildings project when you have cost categories. You cannot, however, extract a single report giving details of marketing expenses incurred by Salesman A on Project Buildings. These are different cost categories and cannot be merged. If such reports are required, you must create ledgers like Conveyance - marketing which will help generate the desired report.

By allocating to parallel cost centres under different categories, you are simply assigning the amount to them; it does not increase the amount. In the above example, the conveyance of 1000/- remains an expense of 1000/- only. Tally performs an automatic reconciliation on real- time basis and you do not need to worry about reconciling ledgers and cost centres.

Note: You do not allocate transactions to cost categories you allocate them to cost centres only. The concept is not unlike group/ledger account classification

concept is not unlike group/ledger account classification Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

How to Manage and Operate Cost Centres?

Accounts Information - Introduction

Page 63 of 106

Accounts Information - Introduction Page 63 of 106 In the introduction to this chapter, the concept

In the introduction to this chapter, the concept and use of cost centres were explained. You should go through them now if you have not already done it.

Create a Cost Centre

Gateway of Tally > Accounts Info. > Cost Centre > Single Create

> Accounts Info. > Cost Centre > Single Create Category This field appears only when you

Category

This field appears only when you have opted for 'more than ONE Cost Category'. Otherwise, Tally automatically creates a 'Primary Cost Category' to which all cost centres are assigned. This default Primary Cost Category is transparent to you and you need not worry about it till you want more than one cost category. (Cost categories have been explained above and under Advanced usage).

You will normally not need more than one category and should not use it till you are absolutely sure that the same information is not available with cost centres alone. We shall create a primary cost centre Bangalore.

Name

The name of the Cost Centre. We create the Cost Centre 'Bangalore' here.

alias

We can call the Cost Centre Bangalore with another name, say Head Office, or even a code number.

Under

This field is for the parent cost centre of the cost centre Bangalore under creation. You had already created a Primary Cost Centre Departments with cost centre Marketing, Salesman A, Salesman B and Salesman C. You may put the cost centre Bangalore under any one of these. However, since it would not be suitable you may have it as a primary cost centre. Assign Bangalore to Primary and accept the screen. You may go on to create a new Cost Centre 'Finance' under 'Departments' as an exercise.

Note: Unlike groups, you may allocate transactions to primary cost centres too. However, you should do so when you do not have sub-cost centres under the primary. Allocation to a higher level cost centre is often unnecessary and your information is more meaningful if you allocate to the lowest levels (similar to ledgers).

if you allocate to the lowest levels (similar to ledgers). file://C:\Documents and Settings\ACCOUNT\Local

Accounts Information - Introduction

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Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Alter a Cost Centre

Ltd. 1988-2005. All rights reserved. Alter a Cost Centre Gateway of Tally > Accounts Info. >

Gateway of Tally > Accounts Info. > Cost Centres > Single Alter > List of Cost Centres

The screen is exactly the same as the creation screen and is, therefore, not reproduced here.

Name and alias

Change them if you need to do so.

Under

You may change the parent to any other cost centre.

Explanation on Buttons for cost centres in single mode

F3:Company: To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

Groups, Ledgers, Cost Centres, Voucher Types

To enable you to switch to these areas without having to quit from the current screen.

F11:Features: To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure:To change configuration of master information.

Note: Configuration changes affect all companies whereas Features changes affect on the current company.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Expert Usage

 
 
 

Create Multiple Cost Centres

Gateway of Tally > Accounts Info. > Cost Centres > Multiple Create

Accounts Information - Introduction

Page 65 of 106

Accounts Information - Introduction Page 65 of 106 This is a quick way to create a

This is a quick way to create a number of cost centres at a time.

Under Cost Centre

You would select a particular cost centre as the parent cost centre if you wish to create a number of cost centres under it. In the above screen, we have selected Finance as we would like to create the cost centres Taxation, Management Accounts and Financial Management under it. If you do not want to be restricted to one parent cost centre while creating cost centres, choose 'All Items'.

All Items

In case the parent cost centre is 'All Items', you will have to fill up all the columns. The table below 'Under Cost Centre' has the columns Name of Cost Centre and Under (Parent cost centre). If your parent cost centre (the field 'Under Cost Centre') is not 'All Items', your cursor would only go the column Name of Cost Centre. This is obviously because the information is already known.

Name of Cost Centre

Give the name of the new cost centre. In the above screen, rapidly create cost centres Taxation, Management Accounts and Financial Management. The alias facility is not available in this mode. Select single alter to give aliases to cost centres being created in multiple mode. To accept the screen and end entry select End of List from the List of Cost Centres.

You are not permitted to accept a blank table.

Under

Give the parent cost centre here. You may not create a parent here - the ubiquitous <alt>+<C> is not available for this field.

More:

Alter Cost Centres in multiple mode

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Alter Cost Centres in Multiple Mode

 
 
 

Gateway of Tally > Accounts Info. > Cost Centres > Multiple Cost Centres Alter > Select from List of Cost Centres

Accounts Information - Introduction

Page 66 of 106

Accounts Information - Introduction Page 66 of 106 Under Cost Centre Since you selected Finance from

Under Cost Centre

Since you selected Finance from the pop-up List of Cost Centres, it fills up this field and the cursor goes to the field Name of Cost Centre. In case you had selected 'All Items' from the pop- up List of Cost Centres, the cursor would go to the field Name of Cost Centre in the table. You are allowed to use <backspace> to move back to the field 'Under Cost Centre' or use the button F4 to Change Parent.

Name of Cost Centre

You may alter the name of the cost centre

Under

Select from the available list of Cost Centres under the specified category. Observe that other cost centres are available for selection as a parent.

Delete Cost Centre in multiple mode

You cannot delete a cost centre here. IF you need to delete, go through the Single Alter mode.

Explanation on Buttons

F3:Company: To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<ENTER>or<Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Comp: To work on the same report of another company. Available only in display mode.

F4: Parent: To move the cursor to the field 'Under Cost Centre'

F4: New Parent: To bring up the list of cost centres to select a new parent cost centre.

F6: Skip names: For faster data entry when you need to alter only the Category and the Parent Cost Centre but not the names. When you skip names, you might change the category or the parent cost centre to one which belongs to another category. Since this violates categorization rules, Tally complains after you accept the screen. (The error message is reproduced after the explanation on buttons.

F7: Skip Parent: For faster data entry when you do not need to alter the parent cost centres but only the name of the cost centre. The same error as is possible with Skip names should be avoided.

Groups, Ledgers, Cost Centres:

To enable you to switch to these areas without having to quit from the current screen.

F11: Features:To change company features. A detailed discussion on features has been done in

Accounts Information - Introduction

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earlier section under Gateway of Tally.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Advanced Usage

 
 
 

How to manage and operate Cost Categories

To use Cost Categories, you must activate the option 'More than One Cost Category' in [F11] Company Accounting Features.

Cost Category' in [F11] Company Accounting Features . The default is No for 'more than ONE

The default is No for 'more than ONE Cost Category'. In this state, Tally creates a single Cost Category called 'Primary Cost Category'. All cost centres created, prior to enabling this feature, go into this category. Now after activating it, you would need to create the new cost categories, and alter the existing cost centres to bring them under respective cost categories.

Create a Cost Category

Gateway of Tally > Accounts Info. > Cost Categories > Single Create

Name

The name of the cost category, e.g., Products. Earlier, we had created Departments, Branches and Executives.

Note: There is no sub-classification of cost categories and hence you do not find an 'Under' option. Though there is a primary cost category, it is not a parent of other categories.

Alias

You may call the category by another name or even a code number. The following information is additionally available when you have opted for Advanced Information in [F12] Accounts Configuration.

for Advanced Information in [F12] Accounts Configuration. file://C:\Documents and Settings\ACCOUNT\Local

Accounts Information - Introduction

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Allocate Revenue Items (Yes/No)

Enable this option to allocate all sales, purchase, expenses and income related transactions to cost centres that you will create under cost categories. Normally, you would enable this option. However, should you need to allocate only capital/non-revenue items only to cost centres in this cost category, disable it by selecting 'No'.

Allocate Non-Revenue Items (Yes/No)

You would, normally, disable this option as most cost centres need only revenue allocation. However, should you wish to allocate items of non-revenue (capital) or Balance Sheet items, you may select 'Yes'. Organisations are increasingly requiring allocation of capital items to cost centres. They wish to monitor the capital expenditure incurred on cost centres and measure them against revenue earned. Hence, recognising this trend, Tally has provided this facility.

Note: Remember that you must enable either revenue or non-revenue item or both. You may not disable both. Tally sets a default of Yes for revenue items and No for Non-revenue.

Alter a cost category

Gateway of Tally > Accounts Info. > Cost Categories > Single Alter >List of Categories

Simply alter any detail in the cost category. The display option is exactly like alter but without the ability to modify anything in the screen.

Delete a cost category

Gateway of Tally > Accounts Info. > Cost Categories > Single Alter >List of Categories

You may delete a cost category that does not have any cost centre under it. Use <alt>+<D> to delete. Tally does not allow deletion of a cost category which has cost centres.

Buttons in single cost category screens

F3:Company:

To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Comp:

To work on the same report of another company. Available only in display mode.

Groups, Ledgers, Cost Categories, Cost Centres,Voucher Types:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features:

To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure:

Accounts Information - Introduction

Page 69 of 106

To change configuration of master information.

Note: Configuration changes affect all companies whereas Features changes affect on the current company.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Expert Usage for Cost Categories

 
 
 

Create Multiple Cost Categories

Gateway of Tally > Accounts Info. > Cost Categories > Multiple Cost Category Create

> Cost Categories > Multiple Cost Category Create This is a quick way to create a

This is a quick way to create a number of cost categories in one sitting. Give the name of the cost category and whether you need to allocate revenue and/or non-revenue items to cost centres under it. In the above screen, we have entered two cost categories, Processes and Machines. We wish to allocate both revenue and non-revenue items to Processes and only revenue to Machines. Once the list is completed, press <enter> on the first blank Name of Category field to accept the screen and exit.

Note: There is no 'Under' field. You cannot sub-classify cost categories. Cost categories have cost centres as their sub-classification.

Alter Cost Categories in multiple mode

Gateway of Tally > Accounts Info. > Cost Categories > Multiple Cost Category Alter

> Cost Categories > Multiple Cost Category Alter You may alter name or allocation particulars without

You may alter name or allocation particulars without any restriction.

Delete Cost Category in multiple mode

You cannot delete a cost category here. IF you need to delete, go through the Single Alter mode.

Explanation on Buttons

Accounts Information - Introduction

Page 70 of 106

F3:Company: To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

F3: New Comp: To work on the same report of another company. Available only in display mode.

F6: Skip names: For faster data entry when you need to alter only the Allocation details but not the names of the cost categories.

F8:Skip Details: For faster data entry when you do not need to alter the Allocation (Revenue and Non- revenue) details. You need to give only the names and the default allocations of Yes for Revenue and No for Non-revenue would be automatically inserted when you are creating cost categories. If you are in alter mode, whatever allocation you had opted for, when creating the categories, would be retained.

Groups, Ledgers, Cost Categories, Cost Centres:

To enable you to switch to these areas without having to quit from the current screen.

F11:Features: To change company features. A detailed discussion on features has been done in earlier section under Gateway of Tally.

F12:Configure: To change configuration of master information.

Note: Configuration changes affect all companies whereas Features changes affect on the current company.

More:

How to manage and operate Cost Centres under Cost Categories

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

How to Manage and Operate Cost Centres under Cost Categories?

 
 
 

In the introduction to this chapter, the concept and use of cost centres were explained. You should go through them now if you have not already done it.

Create a Cost Centre

Gateway of Tally > Accounts Info. > Cost Centre > Single Create

Accounts Information - Introduction

Page 71 of 106

Accounts Information - Introduction Page 71 of 106 Category This field appears only when you have

Category

This field appears only when you have opted for 'more than ONE Cost Category'. Otherwise,

Tally automatically creates a 'Primary Cost Category' to which all cost centres are assigned. This default Primary Cost Category is transparent to you and you need not worry about it till you

want more than one cost category. (Cost categories

already created the cost category Branches. We shall now create Cost Centres under this category. Select Category from the List of Categories or create one using <alt>+<C>. If your cursor goes straight to the next field Name, press <backspace> if you wish to go back to Category.

have been explained above). We had

Name

The name of the Cost Centre. We create the Cost Centre 'Bangalore' here.

alias

We can call the Cost Centre Bangalore with another name, say Head Office, or even a code number.

Under

This field is for the parent cost centre of the cost centre Bangalore under creation. The parent must belong to the same Cost Category -Branches. Since you do not have any other cost centre under Branches cost category, you will find only Primary as the available parent in the popup list of Cost Centres. Assign Bangalore to Primary and accept the screen.

Note: Unlike groups, you may allocate transactions to primary cost centres too. However, you should do so when you do not have sub-cost centres under the primary. Allocation to a higher level cost centre is often unnecessary and your information is more meaningful if you allocate to the lowest levels (similar to ledgers).

Alter a Cost Centre

Gateway of Tally > Accounts Info. > Cost Centres > Single Alter > List of Cost Centres

The screen is exactly the same as the creation screen and is, therefore, not reproduced here.

Category

Though your cursor does not come to it right away, you are allowed to change the Cost Category of the cost centre. Press <backspace> to go to Category.

Name and alias

Change them if you need to do so.

Accounts Information - Introduction

Page 72 of 106

Under

You may change the parent to any other cost centre under the Category.

Buttons for cost centre single mode

F3: Company: To work with a different company. In the creation mode, you can create cost categories in the other company. In alter mode, you can copy the information by accepting the screen (<enter> or <Ctrl>+<A>). The old company's information remains. Not available in Display mode.

Groups, Ledgers, Cost Categories, Cost Centres, Voucher Types:

To enable you to switch to these areas without having to quit from the current screen.

F11: Features: To change company features. A detailed discussion on features has been done in earlier under Gateway of Tally.

F12: Configure: To change configuration of master information.

Configuration changes affect all companies where as Features changes affect on the current company.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Expert Usage for Cost Centres under Cost Categories

 
 
 

Create Multiple Cost Centres under Cost Categories

Gateway of Tally > Accounts Info. > Cost Centres > Multiple Create

Accounts Info. > Cost Centres > Multiple Create This is a quick way to create a

This is a quick way to create a number of cost centres at a time.

Under Cost Centre

You would select a particular cost centre as the parent cost centre if you wish to create a number of cost centres under it. In the above screen, we have selected Finance as we would like to create the cost centres Taxation, Management Accounts and Financial Management under it. If you do not want to be restricted to one parent cost centre while creating cost centres, choose 'All Items'.

The table below Under Cost Centre has the columns Category, Name of Cost Centre and Under (Parent cost centre). If your parent cost centre (the field 'Under Cost Centre') is not 'All Items',

Accounts Information - Introduction

Page 73 of 106

your cursor would only go the column Name of Cost Centre. This is obviously because the information of the other fields is already known. In the above screen, rapidly create cost centres Taxation, Management Accounts and Financial Accounts. Select End of List to accept and quit.

All Items

In case the parent cost centre is 'All Items', you will have to fill up all the columns. The cursor will wait at the first Category field.

columns. The cursor will wait at the first Category field. Category For the category under which

Category

For the category under which the cost centre will be created. Select from List of Categories or create a new category using <Alt>+<C>.

To accept the screen and end entry select End of List from the List of Categories. You are not permitted to accept a blank table.

Name of Cost Centre

Give the name of the new cost centre. The alias facility is not available in this mode. Select single alter to give aliases to cost centres being created in multiple mode.

Under

Give the parent cost centre here. The pop-up List of Cost Centres will allow you to select only those cost centres that belong to the category. For example, while creating the cost centre Management Accounts, the List of Cost Centres for the field Under would contain only the Departments Finance, Manufacturing and Marketing. Other cost centres will be excluded. You may not create a parent here - the ubiquitous <alt>+<C> is not available for this field.

More:

Alter CostCentres (under cost categories)in multiple mode

Explanation on Buttons in multiple mode

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Alter Cost Centres (under cost categories) in Multiple Mode

 
 
 

Gateway of Tally > Accounts Info. > Cost Centres > Multiple Cost Centres Alter > Select from List of Cost Centres

All fields may be altered for a given Cost Centre.

Accounts Information - Introduction

Page 74 of 106

Under Cost Centre

Since you selected Finance from the pop up List of Cost Centres, it fills up this field and the cursor goes to the field Name of Cost Centre. The Category is automatically filled up. In case you had selected 'All Items' from the pop up List of Cost Centres, the cursor would go to the field Category. You are allowed to use <backspace> to move back to the field 'Under Cost Centre' or use the button F4 to Change Parent.

Category

You may change the category or create a new one.

Name of Cost Centre

You may alter the name of the cost centre

Under

Select from the available list of Cost Centres under the specified category. Observe that even Taxation is available as a parent.

Delete Cost Centre (under cost categories) in multiple mode

You cannot delete a cost centre here. IF you need to delete, go through the Single Alter mode.

 
 
 

Copyright Tally Solutions Pvt Ltd. 1988-2005. All rights reserved.

Explanation on Buttons in Multiple Mode

 
 
 

F3:Company: