TALLY

Tally is a financial accounting and inventory valuation system. It is versatile and massive software
package, being used by various types of trades and industry. It is accounting without books, so you do
your a/c without any Accounting book. It is a comprehensive accounting. It maintains complete range
of books of accounting Final Accounts, P&L a/c cash and fund flow, Trial balance and others. The
Receivables and Payables provide multiple reports in divert formats. Internet calculations,
multiplication standard control, unlimited cost of profit centers’, unlimited cost and periods of
accounts can be done. So we can say that TALLY is a perfect business solution. The tally 5.4 version
also provides facility of inventory management. To take advantage of full potential of tally, the user
has to understand its feature their implication and how to implication and how to implement them into
business scenario.

There are some important features that make tally one of the most powerful
accounting management software:

1. SIMPLICITY
Tally is one of the simple and complete business solutions available in the world.
Anybody who has a basic knowledge of accounts or an average knowledge of English
can use Tally. It is easy to learn, configure and use Tally. Tally is not a computerized
accounting package but is Accounts on computers.

2. SPEED
A Tally user can get any reports instantaneously for any date/ period and can toggle
between reports, either accounting or inventory or even from one company to another
company instantaneously. The user can also shift across dates in any report without any
time loss.

3. POWER
Tally has the power to generate management information, which would help the
management in taking correct and quick decisions. This in turn enables faster growth of
business. The power of online information made available by Tally helps one in keeping
his business under complete control

4. FLEXIBILITY
Tally is very flexible to use. Tally can adapt to any business needs rather than the user
trying to change the way his business is run to adapt to the package.

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5. NO CODES
Tally was the first accounting package in the world to introduce the No Codes concepts
for Accounts. Tally accepts alphanumeric characters for accounts and inventory masters
and hence any accounts or stock items can be created and identified by their names. The
codeless concept introduced by tally is now the widely accepted norm across the world
today. In case the user wants to use codes, tally supports that too.

6. REAL TIME
Tally updates all reports (from day book to Balance sheets) as and when the transaction
are entered and hence does not need any back end or day/period end process to be done.

Tally provide a great help in managing financial management either it is for single
company or for multiple company as well as branch company or for personal account
management. The T ally user can also handle companies concurrently i.e. the user can
load more than one company and simultaneously work on all or any of the companies
loaded by shuffling between companies as and when required. Tally also allows users to
group companies and hence provides a consolidated report for the companies grouped.
Tally maintains books of accounts in base currency. Tally also allows users to enter
transactions in multiple currencies. Tally also allows users to enter transactions in
multiple currencies and view reports in any of the currencies that have been created in
Tally. The user can thus invoice his foreign customers in their as well receive payments
in their currency. If there is any forex gain/loss, then it reflects the same immediately in
the concerned parties ledger account. The gain or loss hence derived can be transferred to
a forex account by using a journal (use voucher class). The user can also view and a print
ledger account in the currency the transaction has been entered. Tally also allows the user
to view & print all reports in any currencies.

Advancements made by tally developer day by day makes tally one of the more powerful
accounting management tools. There are some features which show the technology
advancement of the tally technology.

7. DATA RELIABILITY
Tally offers extremely high reliability data. Tally uses a flexi-field, flexi- length, self
indexed weighted file structure for an extremely compact and fast database. Tally is

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robust and will not be affected even if there is a power failure or if the machine is shut
down while the system is still functioning and hence there will be no data loss. Tally uses
signaling quality data integrity checks at regular levels to ensure complete reliability of
data.

8. DATA SECURITY
Tally use of data integrity checks ensures that no external change to the data can pass
through Tally. It also uses a binary encoding format needs evolve, Tally Enterprise
evolves with them bringing about improvements to the cross-functional co-ordination,
which helps in improving organizational effectiveness.

9. ALLOW MULTI CURRENCY ACCOUNTING

You can sale purchase orders. This option enables us to use multicurrency system. Click
the option to yes to use it.

10. MAINTAIN BUDGET AND CONTROLS

Unlimited budgets records can be maintained. The option allows you to create multiple
budgets. There could be a budget for specific purposes i.e. budget for branch, realistic
budget etc.

11. ALLOWED 0 VALUED ENTERIES IN VOUCHERS

This option is self explanatory. It allows you to prohibit the entry of zero
valued vouchers, as most of the time they are meaningless.

12. MAINTAIN BILLWISE DETAILS

This option allows you to keep track of an account, on bill to bill basis. If you do not
need bill wise details, Let this option be set to its default value no. in this case you will
only get net closing balances of accounts without any bill wise details.

13. MAINTAIN COST CENTERS'

This option permits you to allocate transactions of certain accounts to cost centers' to
determine unit wise performance. It is use for taking decisions.

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14. VOUCHER TYPES
A voucher is the main document record business truncations. Tally provides it pre-
defined types of vouchers to record various transactions. Tally gives a scope to the user to
define different types of vouchers according to his requirement.

16. DRILL DOWN DISPLAY

It is possible to drill down to grass root level in Tally. One can view any group, ledger or
voucher at a particular point of time.

17. CHRONOLOGICAL REPORTING

Tally produces all records on the basis of the data of transactions and not on the basis of
data of actual entry. This enables the books of accounts to represent accounts
information.

18. REPORTING ON DAY TO DAY BASIS

Tally provides cash books, bank books and other ledger on daily basis. The user can have
information on average daily cash and bank balances.

19. REPORTING ON PERCENTAGE BASIS

Tally provides the facility of presenting all financial statements on a percentage basis.
This option to show % ages can be activated by pressing f12.

20. FUND FLOW AND CASH FLOW

Tally readily provides fund flow statement by consolidating the information required for
it and saves the botheration of user. Tally also takes the movement in cash inflow and
outflow by preparing cash flow statement.

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TALLY ENTERPRISE
Tally uses a unique dynamic architecture that gives you a powerful, flexible and
amazingly simple solution. It can be rapidly implemented to your unique business
processes. So as your business needs evolve, tally enterprise evolves with them bringing
about improvements to the cross functional co-ordination which helps in improving
organizational effectiveness.

BENEFITS OF TALLY ENTERPRISE

1. It is extremely cost efficient.

2. Can be customized to user’s unique reports.
3. Easily adaptable, by both large and small business.
4. Easy to use.
5. Deployable with ease and speed.
ACCOUNT INFORMATION
Account information menu contains all submenus related to account. Tally by default
activates minimum option (Account Groups, Account Ledgers, and Voucher types) that
are required by every user. These options are described below:

1. GROUP

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The account group provides us the ability to classify and organize your account and this
mechanism is known as classification of account. Group option is divided into two main
sub-groups that is single group and multiple groups. Both groups have option to create
group, display group and alter group. With the help of these options we can create new
group either single group or multiple group, can display groups and also if we need to
make any changes we can alter group information.

2. LEDGERS
This is the most commonly used option to view transaction including balances for
ledger , for any ledger. General ledger account controls. As in group, it also has two
options single ledger and multiple ledgers. Both , Single Ledger and Multiple Ledger
have three sub-menus Create ledger, Display ledger , Alter ledger (for any changes ).

3. ADVANCE OPTIONS
If user wants to activate cost center , cost categories, Budgets and currencies then press
<F11> or click on <F11Feature> on the Right Hand Side of the Tally Screen. After doing
this, you will get Company Operations Alterations screen which has many options related
to Accounting and Inventory which you can activate and deactivate by using Yes/ No
options.

a) COST CATEGORIES

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As we know that we can allocate transactions to a cost center individually but with Cost
Category we can allocate same transactions to multiple cost centers. In other world we
can say that we can put more than one cost center transaction within a single cost
category. Cost category is also of two types, Single cost category and multiple cost
categories.

b) COST CENTER
Tally provides us facility to any individual component. Here the meaning of component
is either any project or any process. We can understand it with following it with
following example. Consider an ABC company that develops software, web site and is
involved in data processing job. There are different departments in company. With the
help of Cost Center we can get actual costs involved in each department. Cost Center
Menu has two options, Single cost center and multiple cost centers.

c) BUDGETS
One of the most important features of Tally is its Budget option. With the help of this
option we can maintain Budget for any company. If this option is activated then we can
create budgets.

d) CURRENCIES
Currency is the feature which allows us to manage our business in multi currency
scenario which is useful for imports and exports business. Tally provides an option for
setting Exchange Rates for different currevetica, sans-serif’’ size=’’2’’>currency scenario
which allow us to manage our business in multi currency scenario which is useful for
imports and exports business. Tally provides an option for Exchange Rates for different
currencies. Tally automatically computes gains and loss for Exchange Rates.

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4. VOUCHER TYPE

A voucher is documentation of the detail transactions. In other words we can say that it is
a journal that contains the information about all transactions. For every transaction we
have to enter a voucher in Tally. The voucher entry option is available in [Gateway of
Tally] Menu.

5. QUIT
The last option of this section is quit, to return to Gateway of Tally.

GROUP CREATION
We have two options for group creation, single group and multiple groups. Now we have
to see that how these groups are created:

1. SINGLE GROUP CREATION

In single group creation account group is created one by one.

In group creation there is a option of Alias. Alias is a nickname of the master group. So
these groups are also recognized by their alias name. Generally Alias are kept in
abbreviate form of group name. The advantage of using Alias is that when we have to use
group name, we need not to enter full name of group, we can perform all work with Alias
name.

There is another option in single group creation “Groups behave like a Sub-Ledger”.
Normally in Tally there is no concept of Sub-Ledger but if we want to make it possible
we have to set query as “YES”. This enable us to get a clear view of Group balance
instead of Ledger wise balance.

2. MULTI GROUP CREATION

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With the help of multi group creation option we can create more than one sub-group
under any existing or primary group.

LEDGER CREATION

Tally provides two types of Ledger creation either Single Ledger or Multiple
Ledger.

SINGLE LEDGER CREATION

In single ledger creation account ledger is created one by one.

MULTI LEDGER CREATION

With the help of multi ledger option we can create more than one ledger under any
existing group or primary group at a time. It will take serial no. of each entry
automatically.

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VOUCHER TYPE CREATION
As we already know that Tally provides Eighteen Pre-Defined Voucher
types but if we want to create user defined voucher type then we have to
follow the following procedure.

1. Press <Enter> key or click on Accounts Info option available in

Gateway of Tally Menu.

2. Press <Enter> key or click on voucher Types option available in

Accounts Info Menu.

3. Press <Enter> key or Click on Create Option available in voucher

Types Menu.

After following the above steps, we will get a Voucher Type Creation
Screen in which we have to feed the following information like:

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 Name of voucher

Type of voucher

(either pre-defined or user frequently), Method of Voucher Numbering

(Automatic, Manual, None ( select any one)). Except these there are
some advance entries also which are given below:

a) USE COMMON NARRATION

In a particular voucher we make different type of entries. If we want to present
common description about these entries we have to set this option as YES otherwise
NO.

b) NARRATION WITH EACH ENTRY

If we do not want to give common narration, then there is another option to give
explicitly narration to each entry. This can be done as option YES, otherwise NO.

c) PRINT AFTER SAVING VOUCHER

If we want to print every voucher after entering it, set this option as YES.

d) USE EFFECTIVE DATES FOR VOUCHER

Make this option as YES if you want to enter effective dates for this voucher.

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 COST CENTER CREATION

As we have discussed that cost center are of two types single cost center
and multiple cost center. Now we have to see that how these cost centers
are created.

SINGLE COST CENTER CREATION

In single cost center creation , cost center is created one by one.

In cost center creation there is an option of Alias. Alias is a nickname of the cost
center. So these groups are also recognized by their alias name. Generally Alias are
kept in abbreviate from of cost center name.

MULTI COST CENTER CREATION

With the help of this option we can create more than one cost center
simultaneously under any existing cost center.

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DISPLAY
This option appears in gateway of tally menu. It provides facility to display information
of all accounting records:

a) TRIAL BALANCE
When we double click on this option or press <enter key> on this option, then entire
report related to the trial balance of the company is displayed on the screen.

b) ACCOUNT BOOKS
When we double click on this option or press <enter key> on this option then an
account books menu is displayed which contains various submenus like cash/bank
book, ledger, group summary, sales register, purchase register, journal register. When
we double click on a particular submenu or press <Enter> key on particular submenu
then report related to that submenu is displayed on the screen. All these reports can be
shown in different format such as monthly, weekly, yearly, or daily.

c) STATEMENT OF ACCOUNT
When we double click on option or press<Enter> on this option then an Accounts
Statement Menu is displayed which contains various submenus like cost centers,
outstanding ( Receivables, Payables, Ledger, Groups) and statistics. When we double
click on a particular submenu or press <Enter> on particular submenu then
information related to that submenu is displayed on the screen.

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 d) INVENTORY BOOKS
When we double click or press <Enter> on this option then an Inventory Books Menu
is displayed which contains various submenus like Stock items, Group Summary,
Movement Analysis, Stock Transfers, Physical Stock Transfers. When we double
click on a particular submenu or press <Enter> key on particular submenu then
information related to that submenu is displayed on the screen.

e) STATEMENTS OF INVENTORY
When we double click or press <Enter Key> on this option then an Inventory
Statements Menu is displayed which contains various submenus like Godowns,
Categories, Stock Query, Purchase Bills Pending, Sale Bills Pending, Statistics. When
we double click on a particular submenu or press <Enter> key on particular submenu
then information related to that submenu is displayed on the screen.

f) CASH/FUND FLOW
When we double click or press <enter key> on this option then a cash/fund flow
menu is displayed which contains submenus for cash flow and fund flow. When we
double click on a particular submenu then information related to that submenu is
displayed on the screen.

g) DAY BOOK

This will display day-by-day report.

h) LIST OF ACCOUNTS
This will display list of Ledgers.

VOUCHER ENTRY
Vouchers creation (Voucher Entry) is the most important thing in Tally. Voucher
Entry plays a very important role in managing accounts. We maintain Daily
transactions of our business in Tally only through Voucher Entry. During ,Voucher
Entry we have to follow few simple steps which are described below

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 a) VOUCHER TYPE
In top left corner of the screen there is a list of different types of vouchers. Just by
clicking on any one of them we select the particular voucher type which we need to
create.

b) VOUCHER NUMBER
Every voucher of account has unique Voucher Number for identification. This
voucher number can be automatically generated by the Tally, according to option set
in voucher type under Account info. There are three options in tally to generate
voucher number.

c) AUTOMATIC
If we have selected the automatic option then Voucher number is automatically
generated by the Tally by incrementing the previously generated number. Cursor does
not move on automatically generated number and thus, we cannot change this
voucher number.

d) MANUAL
If we selected the manual option, cursor would blink at the voucher number field and
we can input this number through keyboard.

e) NONE
If we have selected the None option then voucher number would not appear on
screen.

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f) REFERENCE
This field does not appear in all type of vouchers. In Sales Voucher, Purchase
Voucher, Debit Note Voucher and Credit Note Voucher you will get this field just
below the Voucher Type. As ,it is a free field so we can use it according to our
convenience, like se can write bill number of sales or purchase order in Reference
field.

g) VOUCHER DATE
If we want to change the date of voucher entry then this option is available in the
right side of the voucher creation screen, we can press <f2> or just click on it change
the easily.

h) VOUCHER ENTRY
For Voucher Entry, first you have to create all ledgers (a/c). Suppose if you forgot to
create any ledger and you need it at the time of Voucher entry then simply go to
particular option and press <Alt+c>. It will show you Ledger creation screen, from
where you can create new Ledger and came back to Voucher entry screen and
continue your entries.

i) PARTICULAR
This option shows the Ledger name (which you created in Ledger creation).
Particulars can be of debit type or credit type. Display of To or Cr shows that it is
Ledger to credit. Display of By or Dr shows that it is ledger to debit.

j) DEBIT/CREDIT
The amount of transaction is shown either in Debit Column or Credit Column. If we
debit a Ledger, then amount goes into the Debit column , if we credit a Ledger, then
amount goes into the credit column. At the bottom, total of debit and credit amount
appears.

k) NARRATION
Tally provides facility to give description of all transactions. In last there is an option
to provide Narration for whole voucher.

TYPES OF VOUCHERS

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In older time when accounting was done manually the vouchers were broadly divided
in two categories:

1. Cash book

2. Journals

But in modern accounting Tally provides following predefined types of vouchers

to maintain accounting transactions that are describe one by one below:

1. PAYMENT VOUCHER
All transaction related to paying cash or bank is recorded in payment voucher. All
these payments can be of any type such as cash punches, expenses. In payment
Voucher the first entry must be Debit and second entry onwards either in Debit or
in Credit.

2. CONTRA VOUCHER
It is used in fund transfer transaction where net inflow and outflow are equal. In
other words we can say that net effect is zero. In contra Voucher we can do
transaction between cash and bank account only.

3. SALES VOUCHER
All transactions which are taken place due to sales either of goods or of services
is entered in sales. In other words we can say that sales Vouchers are used to
maintain report related to the sales of goods and services. When you do not want
to make entry through invoice use sales voucher ,if we sales goods or services in
credit then Creditors a/c is debit and sales a/c is credit.

4. PURCHASE VOUCHER

This is similar to the sales voucher but basic difference is that it

maintains purchase transaction of the services and goods. Here the
credit become the account of seller while debit the purchase account.

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In purchase voucher the first entry must be credit involving any
creditor.

4. JOURNAL

Whenever we need to make adjustment between different Ledger

accounts we use the Journal Voucher, due to this sometimes it is
called Adjustment Boucher. The common example of Journal
Vouchers is Income Receivables, Provision of Liabilities etc. This is
used for non- cash transaction. Consider the condition that you want
to make adjustment between to or more Ledger accounts here simply
pass the journal voucher without affecting cash or bank account.

6. MEMOS
Except all these predefined Vouchers there is facility in tally to create user-
defined Vouchers which is completely depends upon the user needs. User can
create different vouchers according to his/her requirement.

START WORKING WITH TALLY

COMPANY CREATION

For company creation, Press <Alt+F3> or click on create company button on the
right hand side. You Find will Company Info Menu. Double Click on create
company option or navigate with down arrow key and press <Enter> on Create
Company option you will get a company creation screen in which you have to
feed the information about new company, Like Name of the company, Mailing
Address, Currency which you are going to use Income tax no, Sales tax No, etc.

LEDGER CREATION

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If you are using tally for the first time then you must create following ledger,
some examples of ledger and the concerned group in which they fall are given
below:

S.NO LEDGER NAME UNDER(GROUP)

1. Abs capital a/c Capital a/c
2. Sales a/c Sales a/c
3. Purchase a/c Purchase a/c
4. Salary a/c Indirect Expenses
5. Rent a/c Indirect Expenses
6. Telephone bills a/c Indirect Expenses
7. Staff welfare a/c Indirect Expenses
8. Office expenses a/c Indirect Expenses
9. Factory expenses a/c Direct Expenses
10. Computer a/c Fixed assets
11. Furnishers a/c Fixed assets
12. Aaa co.ltd a/c Sundry debtors
13. Bbb co.ltd a/c Sundry debtors
INVENTORY INFORMATION

It is necessary for user to analyze Company’s Inventory information if he had

selected Account with Inventory option at the time of company creation. In
inventory Info option he has manage and what type of items he has to enter in a
particular group.

VOUCHER ENTRY

Voucher entries will be done on the basis of different type of vouchers. Like for
contra voucher Press <F4>, For Payment Voucher Press <F5>, For Receipt Press
<F6>, For Journals Press <F7>, For sales Press <F8>, For Purchase Press <F9>
and For Memos Press <F10>.

DISPLAY

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To get a view of all the information related to trial balance, Account books,
Inventory Books, day book and others use display option available in gateway of
tally menu.

MULTI-ACCOUNT-PRINTING

To take the printout of all these views use Multi-account-printing option available
in gateway of tally menu.

ADVANTAGES OF TALLY

Tally is concerned to be the best accounting package because of its merits. Many
of the features discussed above are in fact merits of tally. The following points
further account for populating of tally.

1. EASY TO UNDERSTAND
There is no need for any technical training in tally. Anybody having knowledge
of accounting and English can make use of tally.

2. SPEED
With the help of tally any type of report for any period can be made available in
few seconds. Manual accounting can in no way be watched with tally.

3. FLEXIBILITY
Tally is quite flexible and changes can be made in the system as per the
requirements of the users.

4. SAVING OF TIME AND EFFORT

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There is no wastage of time and efforts. Tally helps in saving time and efforts
which could be used elsewhere to manage business in a better way.

5. CODES NOT MANDATORY

Tally does not require any codes to be followed in the system. Accounts and stock
items can be entered by their names as such. Tally was the first package in the
world to introduce the no codes concept tally supports.

6. USER FRIENDLY
Tally is user friendly and provides online help the user can make use of tally just
by regarding what appears on the computer screen.

7. QUICK AND PROMPT DECISIONS

Tally enables the management to make prompt and better decisions. Management
does not have to wait for reports, they are readily available in the manner required
by the management.

8. CONTROL
Business can be controlled in a better way through tally. Everything is systematic
and there is no space for any irregularities. Internal check is automatically
exercised by tally.

9. RELIABILITY OF DATA
The data provided by tally is extremely reliable the data will not be affected even
if there is power failure or the computer is shut down which the system is
functioning and hence there will be no data loss.

10.SECURITY
Tally provides great security the user can have individual passwords and define
multiple levels of security as per his needs.

11.EASY INSTALLATION
Tally has simple and rapid installation. It has a simple menu driven installation
procedure. Its does not take more than one minute to install tally on the local hard
disk.

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Creating a Company

Creating a Company involves providing basic information about the company whose
books of accounts are to be maintained in Tally.ERP 9.

Go to Gateway of Tally > (Alt+F3) Company Info. > Create Company

The Company Creation screen appears as shown :

A detailed explanation on each field is given:

Directory

The data path where you want the company to be created is specified in the Directory
field.

This field is skipped by default when you create the company in the data path given in the
Tally.INI file. If you want to change it, use the backspace key and modify it to the path
required.

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This is referred to as the Tally Anywhere concept , which is the ability to create/load
companies in separate directories. The Directory field is displayed while selecting Select,
Create, Backup, Restore and Rewrite options for a company. By default, the cursor will
skip the field, presuming that you wish to use the default data directory for your work.
You may press Backspace to give a new path and work from there.

For example, the default Tally.ERP 9 data directory could be C:\TALLY.ERP\DATA.

You may now wish to create a new company on C:\TALLY.ERP\PERSONAL, and some
other companies on C:\TALLY.ERP\BRANCHES. The next time, the default directory
displays C:\TALLY.ERP\DATA, and if you wish to work on the data of your branches,
press Backspace and enter C:\TALLY.ERP\BRANCHES for the directory name. This
displays the companies whose data is stored in that location in the List of Companies.
You can even give the path of a network server or any other storage device.

Name

Enter the name of the company whose books are being opened. If you are a professional
accountant and are maintaining the books of your clients, give the Client Company's
name.

Mailing Name and Address

In addition to the Company Name, Tally.ERP 9 provides the facility to enter the Mailing
Name field. It displays the Company Name by default. You may change it as required, if
the mailing name is different from the Company Name. The mailing name and address
details are picked up for inclusion in any report that needs the company name and address
as heading. For example: Balance Sheets, Statement of Accounts, and so on.

Tally.ERP's reports print the mailing name and address as given:

Tally.ERP 9 does NOT restrict the number of lines for the address details. Tally.ERP 9
accommodates all the entered information and vertically compresses the same.

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Note: In the space provided for the Address details, observe the vertical compression as
compared to the Mailing Name field where there is horizontal compression.

You can specify any length for the mailing name and you are permitted to give any
number of lines for the address. The information is completely visible.

Tally.ERP 9 handles compressed information correctly while printing. It adjusts the

reports accordingly.

Statutory compliance for

Select the Country from the List of Countries. The Statutory Features and Base Currency
Symbol are enabled in accordance with the country selected. For example, if the accounts
belong to a company in India, the base currency would be Indian Rupees. The Base
Currency will appear with respect to the Country selected.

Selecting India from the List of Countries brings up a State, Pin Code and Telephone No.
field.

State

You can select the appropriate state from the predefined list.

PIN Code

Specify the PIN Code (Postal Index Number) of the specified address.

Telephone

Enter the Telephone number.

Mobile No

Enter the mobile number of the company.

E-mail Address

Enter the E-mail address that will be used to e-mail documents, reports and data from
Tally.ERP 9.

Enable Auto Backup

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Set this to Yes, if you want to enable the automatic backup of Tally.ERP 9 data (per
company). Else, set this to No. The data backup is stored in the data folder of the
respective company. The auto backup data can be restored by pressing Ctrl+Alt+K from
Company Info menu or Gateway of Tally.

Note: Ensure that all the systems in a network have the same date and time settings.

Currency

Currency symbol is the symbol of the base currency, that is, the currency that will be
used to maintain the books of account.

The symbol ` appears by default in case India for India/SAARC Companies and the field
is left blank for International Companies.

Note: The currency symbol changes based on the country selected from the list for
Statutory compliance for field.

Maintain

Tally.ERP 9 displays a drop down for the Type of Company with two options Accounts
only and Accounts with Inventory

Select Accounts only if you do not have any inventory transactions (suitable for
professionals and corporate offices).

However, at a later date (if required) you can choose to alter the information as
Accounts-with-Inventory. Select Accounts-with-Inventory, to maintain both financial
accounts and inventory.

Financial Year From

In most countries, the books of accounts of a company are maintained for a stipulated
period like, 12 months, 15 months, and so on. This stipulated period is referred to as the
Financial Year.

The stipulated period of the financial year is 12 months in most countries. Tally.ERP 9
automatically considers 12 months from the date you give here as the Financial Year.

For example, if you enter April 1, 2008 as the date, the Financial Year will be from April
to March ending with March 31, 2009. If you enter October 1, 2008 as the Financial Year
From then the financial year will be from October 2008 to September 2008 ending with
30th of September every year.

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Tally.ERP 9 allows you to maintain data for multiple years by changing the period
(Alt+F2) at the Gateway of Tally. In addition, you can also specify the date of actual
establishment of the company (date of incorporation)

Books Beginning From

Tally.ERP 9 presumes that you wish to maintain books from the beginning of the
financial year. Hence, Tally.ERP 9 displays the date given in Financial Year From field
automatically.

The date for Books beginning from can be changed, in case of companies, which are
incorporated in the middle of the year. If your company is new, you can opt to start the
books of accounts from the date of actual establishment of the company (date of
incorporation) but close books according to the Financial Year as specified by you.
Tally.ERP 9 provides the required flexibility in such a case by allowing you to give the
date when the books of accounts actually began. Tally.ERP 9 will open books from this
date and close as on the last day of the Financial Year.

For example, if your company is established on August 19, 2008, the opening balances
for all the accounts can be given as on August 19, 2008 even though the Financial Year
given is April 1, 2008 (April to March financial year). The company's books will begin
on August 19, 2008 and close on March 31, 2009, which ensures smooth transition to the
next year.

This concept can be applied even when you are migrating to Tally.ERP 9 from any other
system or from a manual accounting system on any day during the Financial Year. Close
books in that other system on the previous day and start books on Tally.ERP 9 from this
day. You are allowed to give opening balances of all Ledger accounts including Revenue
accounts.

TallyVault Password

TallyVault is an enhanced security system, which allows for encryption of the company
data. Encryption involves converting normally accessible Tally information into
unrecognisable information, which can only be reconverted by authorised persons.

Give a password here and repeat the same in the Repeat field. This basically results in the
creation of an encrypted company whose information is not accessible to users other than
the password holder.

Use Security Control?

Set this to Yes, if you want to initiate a password-protected system to control access to
Tally.ERP 9 data. Else, set this to No.

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If you opt for security control, Tally.ERP 9 offers a comprehensive password based
access control to different features of Tally.ERP 9 based on authority lists created by the
Administrator. For more information refer Data Management in Tally.ERP 9.

Name of Administrator, Password, Repeat

Assuming the Tally Vault Password and Use Security Control is set to Yes enter the
Name of Administrator, Password and Repeat in the respective fields.

Use TallyAudit Features

Tally Audit allows the administrator or an auditor profile user to track changes in
accounting information. If you wish to use this facility, select Yes. Tally Audit will be
available only to the administrator/auditor, through Display of Statements of
Accounts.For more information refer Data Management in Tally.ERP 9.

Disallow opening in Educational mode ?

Set this option to Yes, if you don't want the company to be opened in Educational mode
of Tally.ERP 9. Else, set this to No.

On accepting the company creation screen, if you have specified Tally Vault password,
Tally.ERP 9 prompts you to enter the TallyVault password as appears:

Then Tally.ERP 9 prompts you to enter the Name of User and Password (if any).

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 After verification Tally.ERP 9 imports the latest statutory masters. Wait till the screen
shows that 100% of import is complete.

This completes the Company Creation process in Tally.ERP 9.

An explanation on the fields on the bottom of the Company creation screen follows:

Base Currency Information

The Base Currency Information is found in the bottom frame of the Company creation
Screen. Base Currency is the currency in which your accounts would be maintained.

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Financial statements are prepared in the base currency by default and these are normally
required to be submitted to local statutory authorities. The Base Currency information in
Tally.ERP 9 varies with the country selected for Statutory Compliance.

You can record transactions and raise invoices in foreign currency; and also maintain
bank accounts or ledgers in foreign exchange, when required.

Base Currency Symbol

The currency symbol given earlier in the Company Creation screen is displayed here
automatically.

Tally.ERP 9 uses this currency symbol in reports, wherever necessary.

Formal Name

Formal Name is the full name of the currency specified.

The Formal Name for the base currency is set to Indian Rupees for Indian Companies.

Number of decimal places

The number of decimal places for the base currency is set to 2, by default. However, you
have the option of specifying up to 4 decimal places. Indian currency has 2 decimal
places whereas certain other countries require 3 decimal places and so on.

Is Symbol Suffixed to Amounts

For countries, which specify the symbol after the amount (value) this facility is
provided. For example, Yen is specified after the amount (5000 Yen) unlike in India
where the symbol is specified before the amount (Rs.5000)

Symbol for Decimal Portion

Enter the symbol for decimal portion.

Show Amounts in Millions

This is useful for companies, which require reporting the financial statements in millions.
This is possible only if Allow Multi-Currency is enabled in F11: Accounting Features.

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Put a space between Amounts and Symbol

This facility is provided to users who require a space between the amount and the
symbol. However, putting a space between the amount and symbol could give an
opportunity for misuse incase of cheque printing. Hence, the flexibility to turn this option
on and off as required is provided.

Decimal Places for Printing Amounts in Words

You can specify the number of decimal places for printing the amount in words. This
number should be equal to or lesser than the number specified in Number of Decimal
places field in company creation or currency master screen which will appear in Invoice
and Cheque printing screen.

For example, if the currency is expressed upto 3 decimal places, the numeric to be printed
in words can be restricted to 2 decimal places.

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Conclusion

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