Computerized Accounting

Subject Code – SEC 003

Syllabus
Module – 1: Introduction to computer concepts, elements of computer, and characteristics of
a computer, classification of computer, basic computer architecture, Input-output device, and
software concepts, type of software, software – its nature and qualities, windows operating
system function.
Module -2: Feature of tally, Creating a company, accounting masters, Accounting Ledgers,
Accounting Groups Accounts Vouchers, Purchase order, Sales order, Day Book.
Module – 3: Inventory, Inventory master, stock groups, stock Items, Units of Measure, Go
down, Stock summery ratio analysis, Report.

List of Books
 Module -1
Introduction to computer concepts, elements of computer, and characteristics of a computer,
classification of computer, basic computer architecture, Input-output device, and software
concepts, type of software, software – its nature and qualities, windows operating system
function.
Computer - Introduction:
The word computer comes from the Greek word compute, meaning to calculate. Originally a
super-fast calculator, computers now handle various tasks like accepting, sorting, selecting,
moving, and comparing data, including alphabetic and numeric types.
The information in one form which is presented to the computer is the input information or
input data. Information in another form is presented by the computer after performing a
process on it. This information is the output information or output data.
The set of instructions given to the computer to perform various operations is called as the
computer program. The process of converting the input data into the required output form
with the help of the computer program is called as data processing. The computers are
therefore also referred to as data processors
Therefore, a computer can now be defined as a fast and accurate data processing system that
accepts data, performs various operations on the data, has the capability to store the data and
produce the results on the basis of detailed step by step instructions given to it
The terms hardware and software are almost always used in connection with the computer.
 Hardware: Hardware comprises physical parts of a computer system, including
electronic Integrated Circuits (ICs), magnetic storage media, and mechanical devices
like input and output devices. These components are linked together to form a
functional unit, evolving from vacuum tubes to Ultra Large-Scale Integrated Circuits
in the present generation.
 Software: Computer hardware requires explicit instructions to perform specific tasks,
while a computer program controls its processing activities. Software, consisting of
computer programs, procedures, and documentation, is a collection of programs that
utilize and enhance the hardware's capabilities, ensuring the computer functions
according to the instructions written in the program.
Classification of Computers
Computers are broadly classified into two categories depending upon the logic used in their
design as:
• Analog computers - In analog computers, data is recognized as a continuous
measurement of a physical property like voltage, speed, pressure etc. Readings on
a dial or graphs are obtained as the output, ex. Voltage, temperature; pressure can
be measured in this way
• Digital Computers - These are high speed electronic devices. These devices are
programmable. They process data by way of mathematical calculations,
comparison, sorting etc. They accept input and produce output as discrete signals
 representing high (on) or low (off) voltage state of electricity. Numbers, alphabets,
symbols are all represented as a series of 1s and 0s.
Digital Computers are further classified as General-Purpose Digital Computers
and Special Purpose Digital Computers. General Purpose computers can be used
for any applications like accounts, payroll, data processing etc. Special purpose
computers are used for a specific job like those used in automobiles, microwaves
etc.
Another classification of digital computers is done on the basis of their capacity to
access memory and size like:
Generations of a Computer
Generation in computer terminology is a change in technology a computer is/was being used.
Initially, the generation term was used to distinguish between varying hardware technologies.
But nowadays, generation includes both hardware and software, which together make up an
entire computer system.
There are totally five computer generations known till date. Each generation has been
discussed in detail along with their time period and characteristics. Here approximate dates
against each generation have been mentioned which are normally accepted.
Following is the main five generations of computers
S. No Generation & Description
1 First Generation - The period of first generation: 1946-1959.
Vacuum tube based.
2 Second Generation - The period of second generation: 1959-
1965. Transistor based.
3 Third Generation - The period of third generation: 1965-1971.
Integrated Circuit based.
4 Fourth Generation - The period of fourth generation: 1971-
1980. VLSI microprocessor based.
5 Fifth Generation - The period of fifth generation: 1980-
onwards. ULSI microprocessor based

Computers classification
Computers can be generally classified by size and power as follows, though there is
Considerable overlap:
1. Personal computer: A small, single-user computer based on a microprocessor. In
addition to the microprocessor, a personal computer has a keyboard for entering data,
a monitor for displaying information, and a storage device for saving data.
2. Workstation: A powerful, single-user computer. A workstation is like a personal
computer, but it has a more powerful microprocessor and a higher-quality monitor.
3. Minicomputer: A multi-user computer capable of supporting from 10 to hundreds of
users simultaneously.
4. Mainframe: A powerful multi-user computer capable of supporting many hundreds
or thousands of users simultaneously.
 5. Supercomputer: An extremely fast computer that can perform hundreds of millions
of instructions per second
Characteristics of Computer
• Speed - A computer works with much higherspeed and accuracy compared to
humans while performing mathematical calculations. Computers can process
millions (1,000,000) of instructions per second. The time taken by computers for
their operations is microseconds and nanoseconds.
• Accuracy - Computers perform calculations with 100% accuracy. Errors may
occur due to data inconsistency or inaccuracy
• Diligence - A computer can perform millions of tasks or calculations with the
same consistency and accuracy. It doesn’t feel any fatigue or lack of
concentration. Its memory also makes it superior to that of human beings.
• Versatility – It refers to the capability of a computer to perform different kinds of
works with same accuracy and efficiency.
• Reliability - A computer is reliable as it gives consistent result for similar set of
data i.e., if we give same set of input any number of times, we will get the same
result.
• Automation - Computer performs all the tasks automatically i.e. it performs tasks
without manual intervention.
• Memory - A computer has built-in memory called primary memory where it
stores data. Secondary storage are removable devices such as CDs, pen drives,
etc., which are also used to store data.

Basic Element of Computer

At the highest level of any computer system, there are three essential components: a
processor, memory, and input/output (I/O) devices. These components are interconnected and
work together to perform the core function of a computer, which is to execute programs.
There are four key structural elements of any computer. These are:
1. Processor: It is responsible for controlling processes and carrying out data processing
functions within the computer. When a single processor is available, it is known as the
central processing unit (CPU), which is likely familiar to you.
2. Main memory: Computer memory consists of two types - primary memory and disk
memory. Primary memory, also known as main memory, stores data and programs and
is volatile. This means that the contents of primary memory are lost once the
computer system is shut down. On the other hand, disk memory retains its contents
even when the computer system is turned off, often termed secondary memory.
3. Input/output (I/O) devices: Transferring computer data to its peripheral external
environment involves a range of devices, such as secondary memory devices (e.g.,
pen drives, CDs, etc.), communication equipment (like LAN cable), and terminals.
4. System bus: communicates between processors, main memory, and I/O modules
Basic Computer Architecture

Functional Units
A computer consists of five functionally independent main parts: input, memory, arithmetic
and logic, output, and control units,
The input unit accepts coded information from human operators using devices such as
keyboards, or from other computers over digital communication lines. The information
received is stored in the computer’s memory, either for later use or to be processed
immediately by the arithmetic and logic unit. The processing steps are specified by a program
that is also stored in the memory. Finally, the results are sent back to the outside world
through the output unit. All of these actions are coordinated by the control unit. An
interconnection network provides the means for the functional units to exchange information
and coordinate their actions. The arithmetic and logic circuits, in conjunction with the main
control circuits, is the processor. Input and output equipment is often collectively referred to
as the input-output (I/O) unit.
A program is a list of instructions which performs a task. Programs are stored in the memory.
The processor fetches the program instructions from the memory, one after another, and
performs the desired operations. The computer is controlled by the stored program, except for
possible external interruption by an operator or by I/O devices connected to it. Data are
numbers and characters that are used as operands by the instructions. Data are also stored in
the memory. The instructions and data handled by a computer must be encoded in a suitable
format. Each instruction, number, or character is encoded as a string of binary digits called
bits, each having one of two possible values, 0 or 1, represented by the two stable states.
Input Unit
Computers accept coded information through input units. The most common input device is
the keyboard. Whenever a key is pressed, the corresponding letter or digit is automatically
translated into its corresponding binary code and transmitted to the processor.
Many other kinds of input devices for human-computer interaction are available, including
the touchpad, mouse, joystick, and trackball. These are often used as graphic input devices in
conjunction with displays.
Microphones can be used to capture audio input which is then sampled and converted into
digital codes for storage and processing.
Similarly, cameras can be used to capture video input.
Digital communication facilities, such as the Internet, can also provide input to a computer
from other computers and database servers.
Memory Unit
The function of the memory unit is to store programs and data. There are two classes of
storage, called primary and secondar
Primary Memory
Primary memory, also called main memory, is a fast memory that operates at electronic
speeds. Programs must be stored in this memory while they are being executed. The memory
consists of a large number of semiconductor storage cells, each capable of storing one bit of
information. These cells are rarely read or written individually.
Instead, they are handled in groups of fixed size called words. The memory is organized so
that one word can be stored or retrieved in one basic operation. The number of bits in each
word is referred to as the word length of the computer, typically 16, 32, or 64 bits.
To provide easy access to any word in the memory, a distinct address is associated with each
word location. Addresses are consecutive numbers, starting from 0, that identify successive
locations. Instructions and data can be written into or read from the memory under the control
of the processor. A memory in which any location can be accessed in a short and fixed
amount of time after specifying its address is called a random-access memory (RAM). The
time required to access one word is called the memory access time. This time is independent
of the location of the word being accessed. It typically ranges from a few nanoseconds (ns) to
about 100 ns for current RAM units
Cache Memory
As an adjunct to the main memory, a smaller, faster RAM unit, called a cache, is used to hold
sections of a program that are currently being executed, along with any associated data. The
cache is tightly coupled with the processor and is usually contained on the same integrated-
circuit chip. The purpose of the cache is to facilitate high instruction execution rates.
At the start of program execution, the cache is empty. As execution proceeds, instructions are
fetched into the processor chip, and a copy of each is placed in the cache. When the execution
of an instruction requires data, located in the main memory, the data are fetched and copies
are also placed in the cache. If these instructions are available in the cache, they can be
fetched quickly during the period of repeated use.
Secondary Storage
Although primary memory is essential, it tends to be expensive and does not retain
information when power is turned off. Thus additional, less expensive, permanent secondary
storage is used when large amounts of data and many programs have to be stored, particularly
for information that is accessed infrequently. Access times for secondary storage are longer
than for primary memory. The devices available are including magnetic disks, optical disks
(DVD and CD), and flash memory devices.

Arithmetic and Logic Unit

Most computer operations are executed in the arithmetic and logic unit (ALU) of the
processor. Any arithmetic or logic operation, such as addition, subtraction, multiplication
division, or comparison of numbers, is initiated by bringing the required operands into the
processor, where the operation is performed by the ALU.
When operands are brought into the processor, they are stored in high-speed storage elements
called registers. Each register can store one word of data. Access times to registers are even
shorter than access times to the cache unit on the processor chip.
Output Unit
Output unit function is to send processed results to the outside world. A familiar example of
such a device is a printer. Most printers employ either photocopying techniques, as in laser
printers, or ink jet streams. Such printers may generate output at speeds of 20 or more pages
per minute. However, printers are mechanical devices, and as such are quite slow compared
to the electronic speed of a processor. Some units, such as graphic displays, provide both an
output function, showing text and graphics, and an input function, through touchscreen
capability. The dual role of such units is the reason for using the single name input/output
(I/O) unit in many cases.
Control Unit
The memory, arithmetic and logic, and I/O units store and process information and perform
input and output operations. The operation of these units must be coordinated in some way.
This is the responsibility of the control unit. The control unit is effectively the nerve centre
that sends control signals to other units and senses their states.
I/O transfers, consisting of input and output operations, are controlled by program
instructions that identify the devices involved and the information to be transferred.
Control circuits are responsible for generating the timing signals that govern the transfers.
They determine when a given action is to take place. Data transfers between the processor
and the memory are also managed by the control unit through timing signals. A large set of
control lines (wires) carries the signals used for timing and synchronization of events in all
units.
The operation of a computer can be summarized as follows:
1. The computer accepts information in the form of programs and data through an input
unit and stores it in the memory.
2. Information stored in the memory is fetched under program control into an arithmetic
and logic unit, where it is processed.
 3. Processed information leaves the computer through an output unit.
4. All activities in the computer are directed by the control unit.
Input and Output Devices:
Input Devices
Input device is any peripheral (piece of computer hardware equipment to provide data and
control signals to an information processing system such as a computer or other information
appliance.
Input device Translate data from form that humans understand to one that the computer can
work with. Most common are keyboard and mouse
1. Key board: The keyboard is very much like a standard typewriter keyboard with a
few additional keys. The basic QWERTY layout of characters is maintained to make
it easy for the trained typist to use the system. The additional keys are included to
perform certain special functions such as loading a program, edition a text, etc.
These are known as function keys that vary in number from system to system.
2. Mouse – It is a device that controls the movement of the cursor or pointer on a
display screen. It is a small object you can roll along a hard and flat surface. As you
move the mouse, the pointer on the display screen moves in the same direction.
Mouse contains at least one button and sometimes as many as three, which have
different functions depending on what program is running.
3. Optical Character Recognition: Often abbreviated: as OCR, optical character
recognition involves reading text from paper and translating the images into a form
that the computer can manipulate. An OCR system enables you to take a book or a
magazine article and feed it directly into an electronic computer file.
4. Magnetic Ink Character Recognition (MICR): An MICR can identify characters
printed with a special ink that contain particles of magnetic material. This device
particularly finds applications in banking industry. Since the MICR system can
recognize only certain character styles, the characters have to be accurately formed.
 5. Optical Mark Recognition (OMR): Optical mark recognition, also called mark
sense reader, is a technology where an OMR device senses the presence or absence
of a mark, such as pencil mark. OMR is widely used in tests such as aptitude tests
Output devices
An output device is any piece of computer hardware equipment used to communicate the
results of data processing carried out by an information processing system (such as a
computer) which converts the electronically generated information into human readable form

Printer – it is a device that prints text or illustrations on paper and in many cases on
transparencies and other media. There are many different types of printers. Inters of the
technology utilised, printer fall into the following categories.
a. Ink-jet Printer
b. Laser Printer
c. Line Printer
d. Thermal printer
e. Plotter
Software: It is a set of programs, which is designed to perform a well-defined function. A
program is a sequence of instructions written to solve a particular problem.
Classification of Software’s
Software means a set of programs, procedures and other associated documentation
which describes what the program does and how it is to be used. Hardware and
software both have to work together. A number of software’s can be run on the same
hardware to perform different types of jobs. The software acts as an interface between
the user and the computer. Software is mainly classified into:
 Application Software
 System Software
 Application Software: It is a program or a set of programs which are written to carry
out a specific application.eg. Payroll, financial accounting etc. Nowadays special
application software or packages for specialized areas like drawing, engineering,
manufacturing, banking, and publishing are available. The set of programs which
together make an application package are called application programs.
Examples are MS-Excel, PowerPoint, Google Chrome, etc.
  System Software - The systems software controls the working of the computer
system. It helps the user to use the computer by allowing him to communicate with
the system. System software controls the working of other software’s, hardware,
hardware devices like printers, memory, CPU etc. Thus, they make the operation of
the computer more efficient. The programs included in system software are systems
programs. Without the systems programs, it would not be possible for the application
programs to work on the computer. The systems software is generally provided by the
manufacturer of the computer hardware. Without the systems software the hardware
would not work.
 Utility Software - These are a set of programs or tools which are used in program
development or for performing limited tasks, eg. scandisk.
 Firmware - With the advances in technology it is now possible to make the software
available on ROM (Read Only Memory) chips. These chips, which form a part of the
software, have the programs in them. Thus, programs available on hardware are called
Firmware. Today not only systems software, but even some dedicated application
programs are being made available on firmware.
Operating System
A type of system software. It basically manages all the resources of the computer. An
operating system acts as an interface between the software and different parts of the computer
or the computer hardware. The operating system is designed in such a way that it can manage
the overall resources and operations of the computer.
Operating System is a fully integrated set of specialized programs that handle all the
operations of the computer. It controls and monitors the execution of all other programs that
reside in the computer, which also includes application programs and other system software
of the computer. Examples of Operating Systems are Windows, Linux, Mac OS, etc.
An Operating System (OS) is a collection of software that manages computer hardware
resources and provides common services for computer programs. In this article we will see
basic of operating system in detail.

Uses of Operating System:

The operating system helps in improving the computer software as well as hardware. Without
OS, it became very difficult for any application to be user-friendly. The Operating System
provides a user with an interface that makes any application attractive and user-friendly. The
operating System comes with a large number of device drivers that make OS services
reachable to the hardware environment. Each and every application present in the system
requires the Operating System. The operating system works as a communication channel
between system hardware and system software. The operating system helps an application
with the hardware part without knowing about the actual hardware configuration. It is one of
the most important parts of the system and hence it is present in every device, whether large
or small device.
Windows Operating System
Windows is a graphical operating system whose development was done by Microsoft.
Windows operating system offers users distinctive features such as :
a. Users can view or store their files.
b. Users are allowed to run the software.
c. Users can play games as well as watch videos.
d. Windows Operating System can be connected to the Internet.
The major motive of launching the Windows Operating System was to provide home
computing along with professional uses.
The very first version of the Windows operating system was introduced by Microsoft as 1.0.
It was released for home computing and professional services in 1985. Later, Microsoft
launched different versions of the Windows operating system.
Features of Windows Operating System
Following are the best features mentioned given by the Windows Operating System :
a. Provides an efficient speed
b. Allows disk access as well as file systems
c. Program execution is done in a smooth way
d. Protected and supervisor mode is always there
e. Memory Management is supported to allow multiprogramming
f. Provides regular updates to ease the usage
 Module – 2
Feature of tally, Creating a company, accounting masters, Accounting Ledgers, Accounting
Groups Accounts Vouchers, Purchase order, Sales order, Day Book.

Financial accounting Packages- Introduction

Financial accounting is the process of preparing financial statements that companies ‘use to
show their financial performance and position to people outside the company, Including
investors, creditors, suppliers, and customers.
Financial accounting package generates the following financial statements:
1. Income statement (sometimes referred to as earnings statement" or "profit and loss
[P&L] statement")
2. Statement of comprehensive income
3. Balance sheet (sometimes referred to as "statement of financial position")
4. Statement of cash flows (sometimes referred to as "cash flow statement")
5. Statement of stockholders' equity
Difference Between Manual Accounting and Computerized Accounting
Manual Accounting Computerized Accounting
Manual Accounting is a system Computerized Accounting is an
of accounting that uses physical accounting system that uses an
registers and account books, for accounting software, for
keeping financial records. recording financial transactions
electronically
Recording is possible through Data content is recorded in
book of original entry. customized database.
All the calculation is performed Only data input is required, the
manually. calculations are performed by
computer system.
Slow Faster
Prepared when necessary Instant trial balance is provided
on daily basis
It is prepared at the end of the It is provided at the click of
period, or quarter button.

TALLY – ERP 9
Tally is a financial accounting software package. It is a complete business accounting and
inventory management software that provides various facilities like Government supported
formats, multilingual operations, processing for small and medium businesses in India. Latest
version is Tally. ERP 9. It developed by Tally Solutions Ltd., is one of the most popular and
widely used business management software available in India and over 100 other countries
It is available with two types of licensing system:
  Silver Edition Mode (Single user): It is for single use PC. It can be activated online or
offline. It can be accessed from the system on which it is installed by only a single
user.
 Gold Edition Mode (Unlimited Multi user): It is for unlimited number of user PCs. It
is installed on LAN (local area network) and supports a maximum of ten users
Use of Tally
Tally is powerful accounting software that provides a solution to all challenges a business can
face. Tally takes care of all tasks essential for enterprise management. Meaningful activities
like bank reconciliation, accounts receivable and payable, and record keeping are available in
this software.
Important Features of Tally Software
 Tally is multilingual. You can maintain accounts in one language and view reports in
other preferred languages.
 You can use the payroll feature to automate employee records management.
 Transactions maintained in multiple locations can be updated automatically.
 One licensed version of the Tally software can create and maintain 99,999 company
accounts.
Advantages of Tally
Tally has made complex calculations easy and reduced error rates. It can be customized
depending on your organization’s needs to give accurate solutions.
1. Tally offers exceptional safety and security features. This means people will not be
able to tamper with your data.
2. Tally helps you in calculating the salaries of employees of your organization by
including net deductions, bonuses, and tax deductions.
3. Tally software is used in the banking industry to calculate the interest on loans or
deposits. The software makes complex calculations easier and makes banking much
simpler.
4. The software ensures that data entered across all geographical locations remains
accurate and consistent. This means organizations that are spread globally, will see
uniform data in the software in all countries.
5. Tally ensures that small companies work within a budget. It helps you ensure that
your company stays within the allocated budget.
6. The software helps companies file tax returns every year ensuring it complies with the
updated GST norms.
7. Employees of an organization from anywhere in the world can access the data on this
software with their unique User ID and password which makes using the software
flexible.
8. You can find all your old documents in the archive folder of Tally. It saves all your
bills, vouchers, and receipts which can be easily retrieved if needed.
9. It is cost-effective software that ensures that all financial transactions are running
smoothly.
10. With the latest version of Tally software, you can digitize your signature and bills.
Accounting Software package available in India
 Profit books: This is an Online accounting software developed for small enterprises.
It can only be operated on the internet as it is cloud based. The data can be securely
placed in a cloud and can be accessed anywhere.
 Marg: Accounting Software is developed by Marg Compusoft Pvt Ltd and is well
accepted in small and medium enterprises of India. The software is marketed for the
last two decades in the Indian market.
 Wave: Wave’s accounting tools are 100% free, secure, and very popular in accounting
community. It is one of the best web-based accounting software solution available at
present.
 Xero: Developed by Xero, it is an award-winning web-based accounting software for
small business owners and accountants. The user interface is nicely designed and is
easy to use for online bookkeeping.
 Reach: Reach Accounting Software is developed by Reach Accountant. It is an
online Accounting Software aimed at Small & Medium Businesses. The significant
part of Reach is that all the business operations are bundled in single software and it
ensures that the business owner is able to track every aspect of the business.
Tally Prime vs Tally ERP 9: (Not in Syllabus)
Features Tally ERP 9 Tally Prime
With Tally Prime, you get
In Tally. ERP 9, you are
the freedom to access the
Access Tally required to determine the
data of company data from
Data path of the data in order to
any path, drive, or even
access the company’s data.
remotely.
You are needed to make at You can easily see all your
least 3 clicks for launching masters on a single screen
Chart of
an account in Tally. ERP 9. with Tally Prime. This
Accounts
In Tally’s Gateway > involves groups, voucher
Display > List of Accounts. types, ledgers, etc.
In Tally Prime, you can
In Tally. ERP 9, you can do
Multi-Tasking easily multi-task or check
multi-tasking by opening
in Tally open reports with the
various instances.
feature of Go To.
You are required to employ
For copying and pasting,
Shortcut keys for copying
Copy/Paste in Tally Prime provides
& pasting in Tally. ERP 9.
Tally Global keys. CTRL+C
CTRL+ALT +C
CTRL +V
CTRL+ALT +V
In Tally Prime, you can
In Tally. ERP 9, you are
configure information as
required to fill in the
Supplementary ‘permanent’ so you obtain
required Supplementary
Details only those details in
information every single
Supplementary
time.
information.
Printing There is a high cost of With Tally Prime, you get
 the option of ‘optimizing
printing to save paper.’ This
printing invoices in Tally.
Invoice in Tally helps you save money on
ERP 9.
printing, paper, & other
costs.
Tally Prime renders three
This feature is accessible in choices in sales vouchers or
Change
3 different locations, so other vouchers – Item
Voucher Mode
navigation is complex. Invoice, Accounting
Invoice, and As Invoice.

Bookkeeping:
“Bookkeeping” is one of the functions of financial accounting. Bookkeeping entails
maintaining proper records and books for recording complete details of transactions made
during the course of business. Business transactions can be classified into several major
activities/groups e.g. sales, purchases, assets, etc. Separate books for recording transactions
pertaining to these activities are maintained, registering in them the details of respective
transaction. This exercise is called Bookkeeping
Account
Profit, Loss, Purchases, Sales, Ram, Mohan, Bank, Cash, Computer, Machinery, Furniture,
Assets, Deposit, Interest, Discount, Wages Etc.
Classification of Accounts
There are basically three types of accounts maintained for transactions:
a. Real Accounts
Example: Capital Account, Drawing Accounts, Ram (personal), Asha Traders
(Company) and Bank Accounts
b. Personal Accounts
Example: Cash Account, Furniture Account, Machinery Account, Building Account
and Land Account
c. Nominal Accounts
Example: Interest Account, Discount Account, Commissions Account, Wages Account,
Purchase Account and Sales Account

Debit The Receiver

Personal Accounts
Credit The Giver
Debit What comes in
Real Accounts
Credit What goes out
Debit Expenses and Losses
Nominal Accounts
Credit Incomes and Gains

 Example: Commission received Rs.5, 000.

 Determine the two accounts
Step 1 Cash A/c Commission A/c
involved in the transaction.
Classify the accounts under
Step 2 Real A/c Nominal A/C
personal, real or nominal.
Find out the rules of debit Debit what comes Credit all incomes
Step 3 and credit in & gains
Identify which account is to Cash A/c is to be Commission A/c is
Step 4 be debited and credited to be credited
debited

Similarly:

Tally.ERP 9 Start-up Tally.ERP 9 can be started in any of the following ways:

Click on Start > Programs > Tally.ERP 9 > Tally.ERP 9 or double click on the Tally.ERP 9
icon on your desktop The welcome screen Tally.ERP 9 Power of Simplicity appears while
the software loads. You will be ready to explore Tally.ERP 9, the moment the Tally.ERP 9
start up screen appears.
Components of Tally
The gateway of Tally displays menus, screens, reports and options that you select. The
components of Tally ERP.9 are:
o Top Horizontal Button Bar: This is a collection of buttons that are fixed and provide
quick interaction
o Close Button: This helps in moving out of Tally application.
o Screen Name: It shows the name of the current screen.
o Right Pane: In right pane menus are displayed. The red letter in each menu represents
short cut and by pressing that alphabet from keyboard one can open the menu.
o Left Pane: It shows current period, current date and name of companies with last date
of voucher entry done in each company.
o Vertical Panel Bar: It is used for quick interaction.
o Calculator: It can be used for calculation work and figures can be computed. (Ctrl +
N)
o Information Panel: This displays details of product, version, license and
configurations.
o Task Bar: It shows the complete navigation path of the current menu or screen
selected.
Creation/ Setting up of Company in Tally. ERP 9
Creating company is the first step towards starting working with Tally ERP.9. A company is
an organization for which financial records are to be maintained and therefore, it can be
called as a central repository from where any financial statement or report can be extracted at
any time. A company can be Partnership Firm or a Sole Proprietor or a Limited Liability
Partnership or Non-Governmental Organization or a Company registered under Companies
Act, 2013.
Procedure of Creating a Company
To create a company, click on the ‘create company’ in ‘Company Info’. Alternatively, one can
press ALT+ F3 and the company info screen will appear as appeared in picture.

Create a company using the Company Creation screen.

Creation of a Company
Go to Gateway of Tally > Company Info. > Create Company
The Company Creation screen displays as shown.
Once, you click ‘create company’, the following screen will appear as appeared in picture
down.

The various fields appearing in company creation in Tally screen are explained below:
 Directory: It will display the path where your company data is stored. By default, it
would automatically be stored in Tally ERP.9 data folder, but you can change its path
and can specify any location where you want to store the data relating to the company
by pressing backspace key
 Name: It means providing a name to the company. Example: Rajiv Traders.
Primary Mailing Details:
 Mailing Name: You can specify any other name if you want for mailing purpose. By
default, it will always show the name which you have entered in the Name field
earlier
 Address: Provide the address of the company in this field
 Statutory Compliance: Choose the country in which the company is located. For
example, we have selected India.
 State: Choose the state in which the company is located. For example, we have
selected Delhi. Pin-code: Provide the Pin code for the company where it is located.
Contact Details
Provide telephone number, mobile number and Fax number (if any) of the company. Also,
provide the official email address of the company which would be further used for emailing
of reports and statements.
Auto-Back up: Putting ‘Yes’ to enable auto backup will result in automatically creating
backup of the data of the company in the company data folder.
Company Details:
 o Currency Symbol: Once country is selected, Tally will automatically choose the
currency of the country. In this example, we have selected India, so currency symbol
would be of ‘Rupee’.
o Maintain: If company maintains inventory with them, select accounts with inventory
otherwise accounts only. Selecting accounts with inventory would combine both
financial accounts and inventory books.
o Financial Year: Financial year is a period of 12 months starting from 1st April. The
accounting period in this example, will begin from 1st April, 2023.
o Books beginning from: Provide a date at which you started maintaining your books.
It can be a date later than 1st April, 2023. By default, it would automatically take date
mentioned in previous field.
Security Control:
o Tally Vault Password: Entering this password will require, opening the company
with password each time. The name of the company having tally vault password will
be shown with asterisk ‘*’ mark.
o Repeat Password: Password entered in various field has to re-enter for confirmation.
o Use Security Control: Enabling this field as ‘Yes’ will allow to define access
administrator user name and password. Every time you open a company, it would ask
for name of administrator and password.
Base Currency Information:
o Base Currency Symbol: The selection of country will define base currency symbol.
In this example, we have selected India, so currency symbol would be of ‘Rupee’
o Formal Name: The formal name of the currency like INR (Indian Rupee) will be
displayed.
o Suffix Symbol to amount: This will allow putting symbol of currency after the
amount. Add space between amount and symbol: This will allow space between
amount and symbol.
o Show amounts in millions: This will allow the values of amount to be expressed in
millions i.e. international system of numeration.
o Number of Decimal Places: By default, it will be set to 2 places only and Indian
currency has 2 decimal places whereas some currency has 3 decimal places. It can go
upto 4 decimal places.
o Words representing amount after decimal: By default, it will be automatically set
according to currency.
o Number of Decimal places for amounts in words: Provide the number of decimal
places for which printing is required. It can be equal to or less than number of decimal
places field but can’t be more than that.
After filling all the requisite details, the company creation screen will appear as follows
shown in photo below.
Once the details are filled and you press enter again, screen will display a box saying accept
Yes, or No? If all the details are correctly filled, then proceed to select ‘yes’ otherwise select
‘No’ as shown in the photo below.
Once you select ‘Yes’, the company creation is complete and the following screen will appear
as shown in below photo.

The Gateway of Tally will appear as above with current period and current date on left side
pane of tally screen. Below that it will display the name of the company which is open. Since
it is a new company created, therefore in date of last entry it is written no vouchers entered.
In the right pane, you can see masters where ledger and group creation along with inventory
are created. In transactions, vouchers are created related to accounting and inventory. Utilities
consist of importing of data from outside and other banking related operations like cheque
printing, deposit slip etc. Finally reports include all financial statements like balance sheet
and profit and loss, stock summary and ratio analysis. Display includes trial balance, day
book, cash/fund flow etc. and in the end finally quit where you will be able to close the tally
programme if selected ‘Yes’.
Selecting a Company
By using ‘select company’ field you can open another company from list of companies
already existing in tally. Click Alt+F3 and company info will open as shown in photo below.
Click select company field or press S.
Press shut company field or Press H or Alt+ F1 or click F1: Shut Company on the right pane
Features and Configurations
Once you have created a company, it is now time to set features and configurations as per
requirement. Features will affect only the company in which they are enabled as ‘Yes’ or ‘No’
where as configurations will have an effect on all companies in the directory data.
Features
Features are set of capabilities which are provided as options, which will enable you to set
and maintain your records of financial statements as per your need. It can be found by
Clicking FEATURES on vertical button bar on right pane. Alternatively, you can press F11
and features screen will appear as follows as shown in Fig. 18.15:
You can now see various features like accounting, inventory, statutory and taxation and add
on features as shown in Fig. 18.16. You can open say accounting feature by clicking it or
pressing ‘A’ or pressing F1 or by clicking F1: Accounts on the vertical button bar on right
pane. Once you do so, the following screen will appear as shown in Fig. 18.17:
There are three categories of features viz; (i) Accounting Features; (2) Inventory features, and
(3) Taxation and statutory features.
After carrying out all requisite changes in accounting features, Accept ‘yes’ or ‘No’. The tally
screen will appear as follows as shown in Fig.
Shut a Company:
By “shutting” a company, you are essentially closing a company.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Shut Company: Tally. ERP 9 displays the Close Company screen, with the
List of Companies that are open. You can also use Alt+F1 from the Gateway of Tally
to get to this screen.
Note: You are closing this company and not delating the details from Tally
Alter Company Details:
By “altering” a company, you are modifying the details which you have provided in the
Company Creation screen.
Go to Gateway of Tally > F3: Company Info. (Alt+F3)
1. Click Alter or press A. Tally. ERP 9 displays the Select Item screen, with a List of
Companies that are available in the location specified. Select the company which you
need to alter and press Enter to view the Company Alteration screen. Alter the
company details as required and accept the screen.
2. Alt + D for Deleting a company (Removing Data and details from Tally)

Master in Telly
Masters are the containers of the Accounting Data. These are the heads, which will be set
once and used in many places such as Accounting Voucher Creation, Reports Generation etc.
Data stored in Masters is independent.
Account Masters are the principal accounting entities representing similar transaction
(Account Ledgers) and similar accounts (Account Groups) along which all transaction date
are compiled, summarized and balanced, to be reflected in various Accounting Reports
&Financial statement (profit &Loss Account &Balance sheet).
Types of masters
a. Accounting Masters
b. Inventory Masters
c. Payroll Masters and
d. Statutory Masters
Accounting Masters
The accounting masters primarily consists of Group, Ledger and Voucher Types. The ledger
is the actual accounting head to identify your transactions and generate all accounting reports.
The following table helps to understand the accounting masters and its purpose:
Groups:
Groups are collection of ledgers of the same nature. Account groups are maintained to
determine the hierarchy of Ledger Accounts, which is helpful in determining and presenting
meaningful and compliant reports. Using this you can generate reports, which are meaningful
as well as compliant with laws.
At the highest level, accounts are classified into Capital or Revenue – and more specifically
into Assets, Liabilities, Income and Expenditure.
Tally. ERP 9 provides you with 28 pre-defined Groups. Of these 15 are Primary Groups and
13 are Sub-Groups. You can also create your own groups, either as Sub-groups or Primary
groups. Groups can be sub-classified to an unlimited level to give a virtual accounting tree.
The lowest level would be the Ledger Account. All Voucher entries are passed using ledgers.
You can create the required chart of accounts. You can group the Ledger accounts under the
required Groups at the time of creating the chart of accounts or you can alter them at any
time.
Tally. ERP 9 has pre-defined ledgers for Cash (under Cash-in-hand group) and for the Profit
& Loss A/c (under primary group).
Ledger
A ledger is the actual account head to identify your transactions and are used in all accounting
vouchers. For example, purchase, payments, sales, receipts, and others accounts heads are
ledger accounts. Without a ledger, you cannot record any transaction.
Predefined Ledgers
All ledgers have to be classified into groups. These groups and ledgers are classified into
profit and loss or balance sheet.
There are two pre-defined ledgers in Tally. ERP 9:
a. Cash ledger
b. Profit and loss account
Create Ledgers one-by-one
Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single Ledger).
The Ledger Creation screen appears as shown below:
1. Enter the Name of the ledger account. Duplicate names are not allowed.
2. Enter the alias of the ledger account, if required. You can access the ledgers using the
original name or the alias name.
3. Select a group category from the List of Groups
Note: To create a new group from this field, press Alt+C.
You can alter a ledger account to change its group classification at any time. See Importance
of Grouping and Accounting Classifications for more details.
4. Enter the Opening Balance. The opening balance is applicable when the ledger is an
asset or a liability, and also if it has a balance in the account as on the date of
beginning of books.
Note: For an existing company, debit balances for assets and credit balances for liabilities
are applicable. You can enter balances for accounts that have obverse balances such as
revenue accounts. For example, you may have transferred your books to Tally. ERP 9 in the
middle of the year and may not have closed them in your earlier system. Hence, you must
specify debit or credit for the balance.
Vouchers
‘Voucher’ is the original documentary evidence in support of any payment or receipt of
money by the business. It would be with the help of the voucher that the accuracy of entry
can be checked. Voucher alone can tell us about the nature and sources of the transaction, its
value and authority.
Types of Accounting Vouchers: Tally. ERP 9 is pre-programmed with a variety of
accounting vouchers, each designed to perform a different job. The standard Accounting
Vouchers are:
1. Sales Voucher/Invoice (F8)
2. Purchase Voucher (F9)
3. Payment Voucher (F5)
4. Receipt Voucher (F6)
5. Contra Voucher (F4)
6. Journal Voucher (F7)
7. Credit Note Voucher (Ctrl + F8)
8. Debit Note Voucher. (Ctrl + F9)
You can alter these vouchers to suit your company, and also create new ones. Read ahead to
understand the function of each voucher type. The following exercises are sample entries for
understanding Voucher entry in Tally. ERP 9, do not make these entries.
 Sales Voucher in Tally - Sales voucher is one of the most used accounting vouchers
in Tally. Users can create this voucher in two different formats; as an invoice, or as a
voucher. The invoice format enables users to print a copy of invoices for customers.
For example: a company sells software on credit.
Sales Voucher
Description Records all sales
Voucher Account Amount Amount
Entry Buyer's ledger account Debit
Milton & Co.
(Sundry Debtors)
Sales Accounts Credit
(Local Sales)

Use a Sales Voucher for making this entry.

Go to the Gateway of Tally > Accounting Vouchers > F8: Sales.
The entry made appears as shown below:
 Press Yes or Enter to accept the screen
 Purchase Voucher in Tally - Like sales vouchers, purchase voucher belongs to the
accounting category and is available in both invoice and voucher formats. Editing
and modifying receipt entries in Tally are easy, as its voucher format helps
accountants to do so quickly.
For Example: Buys computers on credit
Purchases Voucher
Description Records all purchases
Voucher Account Amount Amount
Entry Suppliers’ ledger account Credit
Beltron Ltd
(Sundry Creditors)
Purchase Account Debit
(local Purchase)

Use a Purchase Voucher for making this entry.

Go to the Gateway of Tally > Accounting Vouchers > F9: Purchase.
The entry made appears as shown below
 Press Yes or Enter to accept the screen
 Payment Voucher in Tally - The payment voucher is another accounting voucher in
Tally that helps create and print cheques against the order. Once the payment
voucher gets passed, the corresponding cheque can be printed by clicking on
‘banking’ and then on ‘cheque printing’.
For Example: a company settles a creditors bill by cheque.
Payment Voucher
Descriptio Records all bank & Cash Payments
n
Voucher Account Amount Amount
Entry Ledger account of Debit
paid
Medtronic Ltd
(Sundry Creditors)
Bank or Cash Account Credit
State Bank of India
(Bank Account)

Use Payment Voucher to record the entry

Go to Gateway of Tally > Accounting Voucher > F5: Payment

Press Yes or Enter to accept the screen

Payment in single Entry mode

The advantage of a single-entry mode is that you can select multiple debits or credits
depending on the type of entry. Similarly, the transactions can be recorded in single
entry mode even in Receipt and Contra vouchers.
Warn on Negative Cash Balance Tally. ERP 9 displays a warning if the cash
balance is NIL when Warn on Negative Cash Balance is set to Yes in the F12:
Payment Configuration.
For example, a cash ledger account has no balance. A payment of Rs. 4,500 towards
Telephone expenses is to be made. In the process of making the payment, Tally. ERP
9 displays a warning at the time of accepting the entry.
 In Voucher entry mode: Use F12, Payment configuration and set Use Single
Entry Mode Payment/ Receipt/ Contra to Yes
Payment Voucher
Descriptio Records all bank & Cash Payments
n
Voucher Account Amount Amount
Entry Ledger account of paid Debit
Medtronic Ltd
(Sundry Creditors)
Bank or Cash Account Credit
State Bank of India
(Bank Account)

Entry to be made in Single mode appears has shown below:

 Receipt Voucher in Tally - When accountants make a receipt voucher in Tally, all
the invoices which have pending payments pop up as a reminder. As soon as the
client makes the payment through any mode, the receipt can be updated with the
payment method details.
Receipt Voucher
Description Records all bank & Cash Payments
Voucher Account Amount Amount
Entry Ledger account of Credit
receiving Bank interest
(Indirect Income)
Bank or Cash Account Debit
Deposit Account

Use Receipt Voucher to record the entry

Ensure in F12: Payment Configuration. Use Single entry mode for Payment/
Receipt/Contra is set to No
Go to the Gateway of tally > Accounting Voucher > F6: Receipt
The entry made are shown as below:
 :

 Contra Voucher in Tally - Contra vouchers are used to withdraw or deposit money
in banks with the help of instruments such as cheques/ATM/DD or e-transfer to
another account through NEFT/IMPS. With the help of contra vouchers in Tally,
accountants can also generate deposit slips for recordkeeping.
For example: withdrawing money from the bank for petty cash.
Contra Voucher
Description Records funds transfer between cash and bank
accounts
Voucher Account Amount Amount
Entry State Bank of Credit
India
(Bank
Accounts)
Petty Cash Debit
(Cash-in-hand)

Use a Contra Voucher to record the entry.

Setup:
In Voucher entry mode, press F12: Contra Configuration and set the following to
Yes:
1. Skip the Date field in Create Mode (faster entry!)
2. Use Cr/Dr instead of To / By during entry
3. Warn on Negative Cash Balance
4. Show Ledger Current Balances
5. Show Balances as on Voucher Date
 Press Yes or Enter to accept the screen
 Journal Voucher in Tally - Unlike other vouchers, a journal voucher in Tally can
come under the roof of both accounting and inventory vouchers. There are multiple
uses of a journal voucher in Tally depending on the type of business it is being used
for.
For example: the company has entered some expenditure on advertising as general
office costs, rather than recording the transaction in the separate ledger for
advertising.

Journal Voucher
Description Records adjustments between ledger accounts
Voucher Account Amount Amount
Entry Advertising
Debit
(Indirect Expenses)
Office Costs
Credit
(Indirect Expenses)

Use the Journal Voucher to adjust the two accounts:

Go to the Gateway of Tally > Accounting Vouchers > F7: Journal.
The entry made appears as shown below:
 Press Yes or Enter to accept the screen
 Credit Note Voucher in Tally - Credit note voucher in Tally has to be enabled
manually. It is usually enabled by pressing F11 and they manually configuring its
features. Credit note can also be passed by checking the original invoice. When a
client is selected, Tally shows the transaction invoice history that have been raised.
 Debit Note Voucher in Tally - Debit note voucher is one of the most-used types of
vouchers in Tally ERP 9, that is used for managing purchase returns. With the help
of this, accountants can generate a debit note for invoicing as well as a voucher
Day Book
The Day Book contains all vouchers for the day, including inventory vouchers. Its purpose is
to show you a day's transactions, though you can display a report for any period using
Change period option.
The Day Book lists all transactions made in a particular day and by default displays the last
voucher entry date of a regular voucher. It could also be set up to list all the transactions
made over a certain period. Transactions include all financial vouchers, reversing and
memorandum journals as well as inventory vouchers.
In Tally. ERP 9, the Day Book is by default displayed for the current date (as on the last date
of voucher entry). However, you may specify the required period, as per your requirements.
To view the Day Book
Go to Gateway of Tally > Display > Daybook.
The Day Book appears as shown below:
Click F2: Period to change the period for which the Day Book is displayed
To view Day Book for a particular voucher type, you can press F4: Change Vouch button
from the button bar

Select the required Voucher Type to display. The screen is displayed as shown below:
To view the Post-dated Transactions report for the specified period, click T: Post-Dated.
Post-dated Transactions
Drill down from one of the months in the Particulars column. The Post-dated Transactions
report appears as shown:

The report displays information as follows:

 Date: This column displays the date provided in the voucher while recording the post-
dated transaction in Tally. ERP 9.
 Type: This column will indicate if a post-dated cheque has been issued or received.
 Bank: This column displays the bank ledger that has been used to record the
transaction.
 Particulars: This column displays the name of the party ledger that has been used to
record the transaction.
 Inst. No.: This column displays the instrument number entered in the Bank
Allocations screen while recording the transaction.
 Inst. Date: This column displays the instrument date entered in the Bank Allocations
screen while recording the transaction. That is, the date provided on the face of the
cheque.
 Status: This column indicates if the current status of the cheque. There are two types
of status for a cheque:
o Regularized, if the date of the cheque is equal or more than the Date of Last
Entry indicated in the Gateway of Tally.
o Pending, when the cheque date is lesser than the Date of Last Entry.
Amount: This column displays the value of the post-dated cheque issued/received.
 Module – 3
Inventory, Inventory master, stock groups, stock Items, Units of Measure, Go down, Stock
summery ratio analysis, Report.
Inventory: The term inventory refers to the raw materials used in production as well as the
goods produced that are available for sale.
The three types of inventories include raw materials, work-in-progress, and finished goods.
Inventory management is one of the key factors which will define the success of the business.
Inventory is money sitting around in another form and it holds huge working capital. Any
inefficiency in managing inventory will put your business at a disadvantage. This article talks
about the basics of inventory management.
Inventory accounting includes recording of stock details like the purchase of stock, the sale of
stock, stock movement between storage locations or godowns and providing information on
stock availability. Tally. ERP 9 makes it possible to integrate the inventory and accounting
systems so that the financial statements reflect the closing stock value from the Inventory
system.
The inventory system operates in much the same way as the accounting system
Creating an inventory master in Tally
Inventory accounting includes recording of stock details like the purchase of stock, the sale of
stock, stock movement between storage locations or godowns and providing information on
stock availability. Tally. ERP 9 makes it possible to integrate the inventory and accounting
systems so that the financial statements reflect the closing stock value from the Inventory
system. The inventory system operates in much the same way as the accounting system.
In a newly created company, the Inventory Info. menu comprises of four types of
Masters, viz. Stock Groups, Stock Items, Units of Measure and Voucher Types.
The Inventory transactions are quantified and recorded based on the inventory masters
defined as per the business requirements / practice. In Tally. ERP 9, the following Inventory
masters can be created to maintain and view inventory reports.
Master Information
Stock Group Stock groups hold collection of stock items.
A Stock item is the actual inventory master
Stock Items
used in the transactions
Stock Items are transacted based on the
Unit of Measure quantity. The quantity is measured by the Unit
of Measure.
To maintain the availability of stock at various
Locations/
locations. Stock items are stored under the
Godowns
Godowns
 1. Stock Groups
2. Stock Categories
3. Units of Measure
4. Stock Items
5. Godowns

Go to Gateway of Tally > Inventory Info.

The Inventory info. menu is displayed as
shown

Stock Groups
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are
helpful in the classification of Stock Items. You can group Stock Items under different
Stock Groups to reflect their classification based on some common features such as
brand name, product type, quality, and so on. Grouping enables you to locate Stock
Items easily and report their details in statements.
For example, items of a particular brand can be grouped together so that you can get the
inventory details of all the items of that brand.
Stock Group is a collection of stock items of similar nature. A stock item can be assigned
under Primary stock group or a new group or a sub-group can be created to assign the stock
item.
Go to Gateway of Tally > Inventory Info. > Stock Groups

There are two options for creating Stock Groups in Tally. ERP 9:
 Single Group
 Multiple Groups
Note: You can create a new stock Group by pressing Alt+C at this field.

Creating Single Stock Group

Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (Under Single Stock
Group)
o In the Stock Group creation screen,
o Type the Name of the Stock Group
o Press Enter to skip the (alias) field
o Select the required Stock Group or Primary as the parent Stock Group in the Under
field Set the option Can Quantities of Items be ADDED? to Yes

o
o Press Y or Enter to accept the screen

Creating Multiple Stock Groups

Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create (Under Multiple
Stock Groups)
In the Multi Stock Group creation screen,
o Select the Name of the parent Stock Group in the Under Group
o Type Name of Stock Group(s) to be created
o Specify the Parent Stock Group in the Under field (if All Items is selected in the
Under Group field)
o Set the option Items are Addable (Y/N) to No
 o Press Y or Enter to accept the screen

Displaying Stock Groups

Once created, Stock Groups can be displayed in both single as well as multiple mode.
Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (Under Single Group)
o Select the required Name of the Stock Group from the List of Stock Groups
Altering Stock Groups
Once created, Stock Groups can be altered in both single as well as multiple mode.
Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (Under Single Group)
Select the Name of the Stock Group from the List of Stock Groups
Make the required changes and save
Units of Measurement
You will need to create units of measure for stock items. These can be simple units such as
numbers, meters, kilograms, pieces, or compound units, e.g. box, where, say, one box equals
ten pieces
In Tally. ERP 9, there are basically two types of Units of measures (UOM), namely
1. Simple Units
2. Compound Units

Note:
  Simple Units: Simple Units are individual units with no relationship with other units
viz., Nos, Mtrs, Kgs, Hrs, Pieces, Box etc.
 Compound Units: Compound Units is combination of two simple units i.e., where
two units have arithmetical relationship with one another. For example, 1 Box of 10
Nos, Hour of 60 Minutes etc.
Note:
Tally defaults to Simple and if you want to change to compound, use Backspace from the
Symbol field and select compound from the popup list.

a. Symbol: Give the symbol of the unit e.g., No., Mtrs. This symbol given by you is
used in all displays and printouts. We give the symbol ‘no’ (for numbers).
b. Formal Name: Give the formal name of the symbol. This explains the symbol, which
is also used during consolidation of data of different companies where the symbols
might be the same but are assigned to different Units. The formal name will be used to
match them. Here we type Number as the formal name for the symbol ‘no’.
c. No. of decimal places: If the unit will be used in fractions, say for a kilogram you
may have to use grams as well, give the number of decimal places. For kilograms, you
would give 3 decimal places to accommodate up to 999 grams. Hence, a measure 1
kilogram 865 grams will be 1.865 kilograms. For units like numbers, you do not
normally want a decimal place and you can specify 0 in such cases. You can specify 0
to 4 decimal places
Creating Simple Units
Go to Gateway of Tally > Inventory Info. > Units of Measure > Create
o In the Units of Measure creation screen,
o Select Simple in the Type field from the list of Types of Units
o Specify the Symbol
o Type the Formal Name
o Specify the Number of Decimal Places field
Press Enter to accept
Creating Compound Units
Go to Gateway of Tally > Inventory Info. > Units of Measure > Create
In the Units of Measure creation screen,
o Select Compound in the Type field from the list of Types of Units
o Select the First Unit and press Enter
o Specify the Conversion Unit and press Enter
o Select the Second Unit and press Enter

Press Enter to accept

Displaying Units of Measure
To display a Unit of Measure:
Go to Gateway of Tally > Inventory Info. > Units of Measure > Display
 Select the required Unit of Measurement from the list
Deleting Units of Measure
To delete a Unit of Measure,
Go to Gateway of Tally > Inventory Info. > Units of Measure > Alter
o Select the required Unit of Measurement from the list
o Make the required changes and save
Notes
 Tally. ERP 9 allows maximum 4 decimal places.
 You will not be able to alter decimal places, once you have transacted using the given
unit of measurement.
Tips
All the above Units can be created either from the Unit of Measure sub-menu of Inventory
menu or during Stock Item creation, by pressing Alt+C from the relevant fields.

https://www.scribd.com/doc/206027269/Inventory-Masters-in-Tally-erp-9

Creating Single Godown

Go to Gateway of Tally > Inventory Info. > Godowns > Create (Under Single Godown)
In the Godown Creation screen,
 Type the Name of the Godown
 Press Enter to skip the (alias) field
 Select Primary from the List of Godowns drop down
 Set Yes in Allow Storage of materials
 Set No in Our Stock with Third Party
 Set No in Third Party Stock with us

Notes - Ensure that in F12: Configure (Accts/Inventory Info.), Allow ADVANCED entries in
Masters (Inventory) is set to Yes
Press Enter to accept
Creating Multiple Godowns
Go to Gateway of Tally > Inventory Info. > Godowns > Create (Under Multiple Godowns)
In the Multi Godown Creation screen,
o Select the parent Godown in Under Godown field
o Type Name of Godown(s) to be created
o Specify the Parent Godown in the Under field (if All Items is selected in the Under
Godown field)
 Press Enter to accept

Display Reports
Tally prepares the books of account and financial statements based on the vouchers you have
entered to date. You can then vary the appearance of reports according to your needs, for
example, to make comparisons between different companies, periods of the financial year,
groups and ledgers.
In each case, when you display a report, you can step-down to the next level of detail by
highlighting the item and pressing Enter, and you can keep going until you reach an
individual voucher. Similarly, you can step back to higher levels by pressing [Esc] The
special features available for the currently displayed report are indicated on the button bar,
and can be selected with a single click of the mouse
Accessing reports
The Gateway of Tally menus provide access to all the financial reports, as in the diagram
opposite. For example, if you want to view the Sales Register then, in the Gateway of Tally
menu select Display, Account Books and Sales Register in turn, and Tally will display the
report for the currently selected period.
Reports play an important role for businesses to help manage their day-to-day business
operations efficiently. Understanding this need, Tally. ERP 9 provides many insightful
reports. Reports in Tally. ERP 9 is designed to suit all the aspects of accounting management,
inventory management and statutory.
Tally ERP 9 simplifies the process of generating accounting reports, allowing you to easily
create reports such as the Balance Sheet, Profit and Loss A/c, Receivables and Payables, Cash
Flow statement, and more. These reports provide an in-depth view of your business’s
performance, including identifying your most profitable customers, top-selling products, and
the state of your cash flow. Additionally, these reports can help you determine your eligibility
for business financing or loans.
Show or Display Balance sheet, Profit & loss A/c, Ratio, Cash & Fund flow statement.
Inventory Reports
Reports play an important role in any business, as they help manage day-to-day business
operations efficiently. To track the profitability and growth of a business, these reports are
extremely crucial as they give you a holistic view of your company. One such report is an
inventory report.
There are numerous types of inventory reports like, stock summary, location/godown
summary, movement analysis, stock ageing analysis, stock query, physical stock register, and
stock cost estimation.
Printing Reports
Reports and documents generated through Tally's extensive display capabilities can also be
printed. The print options in Tally. ERP 9 are flexible and very easy to use.
Printing can be done in two ways
o Using the Print (Alt+P) button.
o Using Multi-Account Printing option
Both these methods yield the same output.
Using the Print (Alt+P) Button
You can obtain a printed version of the screen that is displayed by selecting Print from the
button bar menu. This brings up new button bar options and the Print Configuration screen
for the report, which displays Print? Yes or No. Select Yes to print the report using the options
specified on the screen. Select No to change the print options before printing.

Annexure
Tally
Short cut keys
Alt+F3 Company information menu
To accept information typed into a field.
Enter To accept a voucher or master.
To get a report with further details of an item in a report.
To remove what has been typed into a field.
To exit a screen.
Esc
To indicate you do not want to accept a voucher or
master.
Ctrl + A To accept a form wherever you use the key combination
 the screen or report will be accepted as it is on this screen
Ctrl + Q It quits the screen without making any changed to it.
To create a master at a voucher screen.
Alt + C When working within an amount field presses Alt+C to act
as a calculator.
To delete a voucher.
Alt + D
To delete a master
Ctrl + Enter To alter a master while making an entry or viewing report.
F2 Date
Alt + F2 Change period
Alt + F1 To see detail
F11 Features company
Configuration options are applicable to all the companies
F12
in a data directory.
Ctrl + N Calculator screen
Voucher mode (Cr. Dr)
Ctrl + V
Invoice mode (name of item, rate, quantity, and amount)