MODULE 1

INTRODUCTION TO COMPUTERIZED ACCOUNTING

Accounting is the method in which financial informations are gathered, processed and summarized
into financial statements and reports.Computerised accounting uses a machine to process
transactions. Tally is a complete accounting package developed by Tally Solutions
Pvt.Ltd.Banglore.ERP 9 is avery user friendly menu driven sotware.Tally has two variants. Tally
Silver which is single user and Tally Gold which is multiuser or network user.

A computerized accounting system is an accounting system that processes the financial

transactions and events to produce reports as per user requirements.
,then a system contains only human resources it is called manual system. 4hen it uses only
computer resources it is called computerized system and, then it uses both human and manual
computer resources it is called computer based system

Difference between computerized accounting and manual accounting

BASIS FOR
MANUAL ACCOUNTING COMPUTERIZED ACCOUNTING
COMPARISON

Meaning Manual Accounting is a system of Computerized Accounting is an

accounting that uses physical accounting system that uses an
registers and account books, for accounting software, for recording
keeping financial records. financial transactions electronically.

Recording Recording is possible through Data content is recorded in customized

book of original entry. database.

Calculation All the calculation is performed Only data input is required, the
manually. calculations are performed by
computer system.

Speed Slow Comparatively faster.

Adjusting entries It is made for rectification of It cannot be made for rectification of

errors. errors.
Backup Not possible Entries of transactions can be saved
and backed up

Trial Balance Prepared when necessary. Instant trial balance is provided on

daily basis.

Financial It is prepared at the end of the It is provided at the click of button.

Statement period, or quarter.

Features of Tally ERP 9

1. Simple and flexible to use 6. GST Ready

2. Easy to learn 7. Allows Remote login
3. Real-time processing 8. Provide online help
4. Multingual support 9. Auditor’s Edition
5. No Account codes 10. Speed

Screen components of tally

1. Title bar-Display version number

2. Horizontal button bar-Select language key, key board language and help
3. Minimize button-To minimize Tally and work on other applications
4. Button Pane-Display version number, releasedetails, date and system time
5. Language Button-Allows the user to configure the language
6. Buttons toolbar-Provide quick interaction with tally
7. Gate way of tally-Display Menu,screens,and reports
8. Calculator/ODBC server-Ctrl+N and Ctrl+M activate and deactivate calculator
9. Keyboard button-configure the language for phonetic keyboard

Starting Tally ERP 9

Start─Programmes─Tally ERP9 /Double click the icon on the desktop

You are getting the opening screen with five menu options such as Select company, Create
company, Back up, Restore and Quit

Creating Company

From the start up screen select ‘Create Company’ and press enter key/double click. The
items in the company creation screen are;
1. Directory 2.Name 3. Mailing Name

4. Address 5. Country 6. State

7. Pin code 8. Telephone Number 9. Mobile Number

10. Fax Number 11. E-mail

12. Website 13. Financial begins from 14. Books beginning from

15. Tally wault password 16.Use security Control 17.Use Tally audit features

18. Base currency symbol 19. Formal name 20. Suffix symbol to amount

21. Add space between amount and symbol 22. Show amount in billions

23. Number of decimal places

24. Word appearing amount after decimal 25. No. of decimal places for amount in words

Altering company creation details

1. Press’Alt+F3’ for company information menu

2. Select’Alter’ option and press enter key
3. Select the company you want to alter
4. Enter the changes and then accept

Deleting a company

1. Press ‘Alt F3’ for company information menu

2. Select’Alter option and press enter key
3. Select the company you want to delete
4. Press ‘Alt +D’ for deleting the company
5. A confirmation dialogue box “Delete or Not”. Pressenter key or Y
1.

F11: Features:

Accounting Features

1. Integrate Accounts and Inventory:

This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set
to Yes, it extracts the stock/inventory balance figures from the inventory records and provides a
drill down to the Stock registers from the Balance Sheet. If set to No, it ignores the inventory books
figures and picks up manually entered closing stock balances from the ledger account created. This
facilitates the maintaining of accounts and inventory separately. Stock records often contain
compensating errors caused by wrong allocation to items. This feature enables finalization of
financial books without waiting for the reconciliation of stocks.

2. Income/Expense Statement Instead of P & L

By Default, this option is set to No. If set to Yes – Tally.ERP 9 displays Income &
Expenses A/c instead of Profit & Loss A/c in the Gateway of Tally.ERP 9 Menu. Income and
Expenditure statement generally used for Non-Trading accounts and Profit & Loss a/c are used
for trading accounts.

3. Allow Multi-Currency

By Default, this option is No. Set this option to Yes, if you want to create multiple
currencies and the Menu Currencies is displayed in Gateway of Tally > Accounts Info. menu.

4. Maintain Bill wise Details

The Bill-wise facility is made functional by setting this option to Yes. By activating the
Bill wise feature, the ledger masters under Sundry Debtors and Sundry Creditors automatically
displays an additional option called Maintain balances bill-by-bill. On setting this option to Yes,
an additional option Default Credit Period is displayed. When you enter details of sales and
purchases with the Bill-wise option activated, Tally.ERP 9 prompts you to identify the invoice
with an appropriate reference number. The reference can then be used to allocate payments to the
correct invoice to maintain an accurate account of outstanding.

5. Activate Interest calculation

Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the
interest rate and style of calculation specified. Enabling this option allows interest calculation on
outstanding balances for any ledger account or on each invoice for the period it is outstanding
completely or partly

Use advanced parameters: The advanced parameters are useful when interest rates change
from time to time. Set this option to Yes to enable this function.

6. Maintain Payroll

Set this option to Yes if you want to maintain Payroll information on Tally.ERP 9 for the
selected company.
7. Maintain Cost Centers
A Cost Centre can be defined as a unit of an organization to which transactions can be
posted. When only costs or expenses are allocated to these units, they are referred to as Cost
Centers. The Cost Centre feature is activated by setting this option to Yes.

Use Cost Center for Job Costing: Set this option to Yes to track all income and expenses
for a Job/Project.

More than One Payroll/Cost category: Set this option to Yes to create more than one Payroll
or Cost Category.

Use Pre-defined Cost Centre Allocations during Entry: Set this option to Yes to define
Cost Centre Allocations. Refer Cost Centers and Cost Categories for details.

Show Opening Balance for Revenue Items in Reports: Set this option to Yes to display
the opening balance in Cost Centre Report for the cost centers which are allocated to
the Ledgers, grouped under Income and Expenses Group.

8. Allow Invoicing
Set this option to Yes, to create Sales and Purchase vouchers in the invoice format. The
advantage of using the invoice format for sales invoice entry is that it enables automatic
calculations of Duties and Taxes accounts.

Enter Purchases in Invoice Format: Set this option to Yes, to enable voucher class option
in purchase voucher type.

9. Use Debit/Credit Notes: The Debit Note and Credit Note voucher types are made
available only if this feature is set to Yes.

Use Invoice Mode for Credit Notes: Set this option to Yes to create Credit Notes in Invoice
Mode.

Use Invoice Mode for Debit Notes: Set this option to Yes to create Debit Notes in Invoice
Mode.

10. Maintain Budgets and Controls

Set this option to Yes, to create multiple budgets. The Budgets menu option is displayed
in Gateway of Tally > Masters Info. > Accounts Info. Menu.
11. Use Reversing Journals & Optional Vouchers
Setting this option to Yes displays the Scenario option in Accounts Info menu. You will
now be able to create and alter Scenarios. You can enter the Reversing Journal and make it
Optional, so that the entries do not to affect the books.

12. Enable Cheque Printing:

Set this option to Yes, to enable Cheque Printing..

Alter Banking Features: Set this option to Yes to alter features with respect to Banking.
Refer Banking Features for details.

13. Allow Zero Valued Entries in Vouchers

Set this option to Yes, to allow Zero valued entries in vouchers.

14. Maintain Multiple Mailing Details for Company & Ledgers

Set this option to Yes, to maintain multiple mailing details for your company and ledgers.
Refer Multi Address for details.

F12 Configuration

1. General configuration 6. Printing 11. Numeric symbol

2. E-mailing 7. Accts/Inventory Info 12. Data configuration
3. Voucher entry 8. Advanced configuration
4. Invoice/order entry 9. Product & features
5. Payroll configuration 10. Licensing 13.Banking configuration 14. Quit

Accounts Masters
6. Allow Advanced Entries in Masters: Set this option to Yes, to enter some of
the advanced information in the Ledger and Group Master. This information will be
reflected in the reports.

7. Use Addresses for Ledger Accounts: Set this option to Yes to enter the Mailing
Details in the ledger master. It is useful for a Customer ledger, a Party ledgers or Bank
Accounts. Mailing Details like Name, Address, State, PIN Code and PAN / IT No. is
entered in this section.
8. Use Contact Details for Ledger Accounts: Set this option to Yes to specify the details
of Contact person (if any) in the ledger creation screen. You can specify the details like
the Name of the Contact Person, Telephone Number, Fax Number and the E-Mail Id.

9. Add Notes to Ledger Accounts: Set this option to Yes and a new field to
enter Notes appears in the Ledger master. This field allows you to enter any additional
information about the ledger.

MODULE – 1

INTRODUCTION TO COMPUTERISED ACCOUNTING

According to American Institute of Certified Public Accounts “Accounting is the art and
science of recording, classifying and summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of a financial character and interpreting the
results thereof”.

Computerized Accounting is the process of maintaining the books of accounts with the
help of accounting software. With computers becoming extensively used in business today, it is
obvious that accounts which are earlier maintained in a manual form will be gradually replaced
with computerized accounts. The speed with which the accounts can be maintained is several
fold higher. Basic difficulties faced like balancing of trial balance, correct posting into the general
ledger and subsidiary ledger is a thing of the past. Today any person maintain accounts in the
computer does not have to face these difficulties. The only concern that have increased today
are concerns of control, security and integrity of the computer system as more and more
information is stored not in the hard print but as soft copies inside the computer.

Definitions:

Computerized accounting can be defined as “The application of computers and software

in accounting process to make the job easier, efficient, up to date, and cost effective”.

Computerized Accounting Vs Manual Accounting

Accounting is an intrinsic part of any business, large or small--owners and other interested
parties want to know whether they are making a profit or not. Many small businesses do their
accounting manually and they are happy with this setup. Others may be considering using a
computerized system, since accounting software is so affordable these days. Manual and
computerized accounting systems perform basically the same processes; the accounting
principles and concepts are the same with differences lying in the mechanics of the process.

1. Speed
The main difference between manual and computerized systems is speed. Accounting
software processes data and creates reports much faster than manual systems. Calculations are
done automatically in software programs, minimizing errors and increasing efficiency. Once data
is input, you can create reports literally by pressing a button in a computerized system.

2. Cost

Another difference between manual and computerized systems is cost. Manual accounting
with paper and pencil is much cheaper than a computerized system, which requires a machine
and software. Other expenses associated with accounting software include training and program
maintenance. Expenses can add up fast with costs for printers, paper, ink and other supplies.

3. Accuracy

Computerized accounting has the advantage of higher accuracy when compared with
manual accounting. The potential for human error is greater when employees are manually
completing accounting procedures. This may be particularly true when dealing with multiple
currencies, since computerized programs can instantly convert exchange rates. If a mistake is
made in computerized accounting, we can run the reports and pinpoint the errors and correct it.
In manual accounting system, a mistake is much harder to find, with an accountant reviewing
many pages full of numbers, and once the reports are created it cannot be processed
immediately.

4. Storage

Computerized accounting provides more scope in storing data when compared to manual
accounting. Computers have very large storage capacity. They have the capability of storing vast
amount of data or information. Computers have huge capacity to store data in a very small
physical space. Apart from storing information, today’s computers are also capable of storing
pictures and sound in digital form.

5. Diligence

A computer is free from tiredness and lack of concentration. Even if it has to do 10 million
calculations, it will do even the last one with the same accuracy and speed as the first. In manual
book keeping the emotions of the accountant may also affect the records.

6. Safety
While you can password-protect your accounting data and store it on your work
computer, manual accounting is less secure in that the written documents pile up over time and
require increasingly large storage solutions. Additionally, you can easily back up digital
accounting data onto an external drive, whereas you must copy manual accounting data
manually. Losing your digital accounting data is less dramatic than losing the original documents,
as you can recover your backups with minimal fuss. However, computer hardware is more fragile
than the actual documents, so you must take steps to protect your data in the event of a
hardware issue.

7. Distribution

In manual accounting, you create and distribute invoices, bills and other records by hand.
With digital accounting, you can create the same set of documents in much less time, and print
as many copies as you need. You can then send digital documents via email, allowing you to limit
the amount of physical media your company actually has to use. With computerized accounting
software, it’s easy to print copy and send any documents needed by your business. However, this
also makes it easier for a nefarious party to intercept your data.
8. Legibility
The switch to computerized accounting from manual accounting has a very fundamental
advantage: legibility. Manual accounting typically is performed by hand, in a ledger. If the writer
has a bad handwriting, it can be difficult to read the entries in the ledger at a later date. This is
not a concern with computerized accounting, as every entry looks exactly the same on a
computer screen or a paper printout, regardless of who entered it into the computer software.
9. Financial Statements
In a manual accounting system, you have to prepare your company’s income statement,
balance sheet and statement of owner’s equity by hand. Information from your journal entries
helps formulate your company’s financial statements. Computerized accounting system allows
financial statements to be created from information stored in the database.
10. Reports
Reports are created in a timely manner when using a computerized accounting system.
Reports generated from computerized accounting software allow managers to run the company
in a more efficient manner. Creating reports in a manual accounting system may lead to more
staff frustration and result in having to work with outdated information.

Merits of Computerized Accounting

The main advantages of computerized accounting are:
1. Fast – data entry onto the computer with its formatted screens and built-in databases of
customers and supplier details and stock records can be carried out far more quickly than
any manual processing.
2. Automatic document production – fast and accurate invoices, credit notes, purchase
orders, printing statements and payroll documents are all done automatically.
3. Accuracy – there is less room for errors as only one accounting entry is needed for each
transaction rather than two (or three) for a manual system.
4. Up-to-date information – the accounting records are automatically updated and so
account balances (e.g. customer accounts) will always be up-to-date.
5. Availability of information – the data is instantly available and can be made available to
different users in different locations at the same time.
6. Management information – reports can be produced which will help management
monitor and control the business, for example the aged debtors analysis will show which
customer accounts are overdue, trial balance, trading and profit and loss account and
balance sheet.
7. GST/VAT return – the automatic creation of figures for the regular GST/VAT returns.
8. Legibility – the onscreen and printed data should always be legible and so will avoid errors
caused by poor figures.
9. Efficiency – better use is made of resources and time; cash flow should improve through
better debt collection and inventory control.
10. Staff motivation – the system will require staff to be trained to use new skills, which can
make them feel more motivated. Further to this with many ‘off-the-shelf’ packages like
MYJOB the training can be outsourced and thus making a particular staff member less
critical of business operations.
11. Cost savings – computerized accounting programs reduce staff time doing accounts and
reduce audit expenses as records are neat, up-to-date and accurate.
12. Reduce frustration – management can be on top of their accounts and thus reduce stress
levels associated with what is not known.
13. The ability to deal in multiple currencies easily – many computerized accounting
packages now allow a business to trade in multiple currencies with ease. Problems
associated with exchange rate changes are minimized.
14. Scalability – Scale of operation may be small, medium or large. Size is not a matter in
computerized accounting system.
15. Decision making – The system generates real-time, comprehensive MIS reports and
ensures access to complete and critical information, instantly. Financial data and reports
have a crucial place in managerial decision making which is automatically generated in
computerized accounting.
Tally 9
In these days computerized accounting has become a necessity for every business.
Computerized accounting is a best way to maintain the accounts in easy and accurate mode. With
the help of computerized accounting, you can easily maintain all accounting books like cash book,
bank book, and sale registered, purchased registered etc.

Tally is one of the most simple and complete business solutions available in the world.
Anybody who has a basic knowledge of accounts can use Tally. It is easy to learn, configure and
use Tally. Tally is not only a computerized accounting package but it is Accounts on computers.
The popularity and acceptance of tally is growing day by day, due to its simplicity and power to
manage any business segment.

In simple words ‘Tally’ is a accounting software. But in wider terms it is a complete business
solution. ‘Bharath Goenka’ developed Tally to handle financial accounts of their own business.
The first version of Tally was released in 1988 and, through continuous development, it’s now
recognized as one of the leading accounting packages across the world, with over a quarter
million customers, Tally market share is more than 90%. The latest version of Tally is Tally.ERP 9.
It comes with the advanced features of

⮚ Tally Payroll
⮚ Multilingual Support
⮚ Statutory and Taxation
⮚ Printing Cheque in foreign currency
⮚ Display of VAT Computation Report

Features of Tally

● It is user-friendly and can be used, even by a novice, in the field of Computers and
Accounting, thus giving you full control over every aspect of your business accounting.
● You don’t have to wait for day-ends to have a quick look of the financial status of your
business/firm. Tally provides you instant results.
● You don’t have to memorize codes for your accounts, Debtors and Creditors.
● It has the complete range of book keeping facilities.
● It is flexible and can be customize suit your daily work schedules and needs, like
customizing Vouchers, final reports etc. you may have reports in statutory formats like
sales tax register, challans etc.
● It has scenario management features to analyse your business performance under varying
assumptions.
● It is highly secured against data tampering. It has very powerful audit facility. Different
labels of security designed with different authorities for data access, usage and security.
● It has interactive online help to bail you out from any confusion.
● Tally has ODBC (Open Database Connectivity) to connect to other programs and exchange
data dynamically.
● It permits you to publish reports/documents on World Wide Web or intranet. You may
directly e-mail all reports and documents.
● You can browse the world Wide Web directly from Tally. No need to switch between
programs. You do not require internet to use tally.
● It is a VAT compliant.
● It is multi-lingual. It supports various fonts and languages in computer and various Indic
languages – Hindi, Marathi, Tamil, Telungu, Kannada, Punjabi, Gujarathi, Bengali and
Malayalam.
● Tally 9 comprises of complete payroll management system and much more.
ERP

Definition: “A process by which a company (often a manufacturer) manages and integrates the
important parts of its business. An ERP management information system integrates areas such as
planning, purchasing, inventory, sales, marketing, finance, human resources, etc”

Enterprise resource planning software, or ERP, doesn’t live up to its acronym. Forget
about planning—it doesn’t do much of that—and forget about resource, a throwaway term. But
remember the enterprise part. This is ERP’s true ambition. It attempts to integrate all
departments and functions across a company onto a single computer system that can serve all
those different departments’ particular needs.

ERP vanquishes the old standalone computer systems in finance, HR, manufacturing and
the warehouse, and replaces them with a single unified software program divided into software
modules that roughly approximate the old standalone systems. Finance, manufacturing and the
warehouse all still get their own software, except now the software is linked together so that
someone in finance can look into the warehouse software to see if an order has been shipped.

Screen Components of Tally 9

The opening screen of Tally is divided into six sections

● Title bar: Displays the Tally.ERP 9 version number.

● Horizontal button bar: Selection of Language key, Keyboard Language and Tally.ERP 9 Help.
● Close button: Performs the standard Windows Operating Systems function (Windows 95
onwards), allowing you to minimize Tally.ERP 9 and work on other applications. To restore
Tally.ERP 9, click the Tally.ERP 9 icon on the taskbar.
● Gateway of Tally: Displays menus, screens, reports and accepts the choices and options which
you select to view data as required.
● Buttons toolbar: Displays buttons which provide quick interaction with Tally.ERP 9. Only
buttons relevant to the current task are visible.
● Calculator Area: Used for Calculator functions.
● Info Panel: Displays Version number, License details, Configuration details.
Creation of Company
Step 1: The first thing to do is to create Company by clicking on F3: Company info button on the
Button panel to have the company info menu.
Step 2: Now select Create Company option from Company info. Menu either by pressing C or by
clicking on that option. You have the company creation screen
Press Enter key to go to the next field after each field entry. For editing in the above screen, use
backspace or up/down arrow keys. The various fields shown in Fig.2 are discussed below:
Fields Description
Tally.ERP 9 assumes that the company is to be created in the data path given in the
Tally.INI file, which is displayed by default. This field is skipped by default.
Directory
However, you can change this path, if you want to, by using the backspace key, so
that Tally.ERP 9 saves the data to a different directory specified by you.
This specifies the name of the company as it appears in Tally.ERP 9. If you have
Name several companies to create with similar names, you will have to distinguish
between them to provide a unique name for Tally.ERP 9.
The company name given in the Name field automatically appears in this field. This
Mailing Name can be changed according to your requirements. The correct name of the company
for mailing purposes should be entered.
The address of the company (The mailing name and address details are picked from
Address
here for any report such as balance sheet and statement of accounts).
Statutory
Select India from the list of countries.
Compliance for
State Select the appropriate State from the list of States.
Pin Code Enter the PIN code of the specified address.
Telephone No. Enter the telephone number of the company.
E-mail address will be used to e-mail documents, reports and data from Tally.ERP
E- Mail
9.
Mobile No. Enter the mobile number of the company.

Maintain Select the nature of the company i.e., Accounts only or Accounts with Inventory.
Financial Year Specify the Financial Year (FY) for the company. Tally.ERP 9 considers 12 months
From from the date you give here as the Financial Year. For example, if you give 1st
April 2009, your FY will be April to March - in this case, ending with 31st March
2010.
The date given for ‘Financial Year From’ is automatically displayed. However, we
Books
can specify the actual date on which the books of accounts start. In case our
Beginning
accounts are opened mid-way during the financial year specified, we can enter the
From
required date and start the books of accounts accordingly.
Tally Vault is an enhanced security feature utilized to protect company data
in an encrypted form by means of a Password. The Tally Vault password
entered ensures that the data is maintained permanently in an encrypted form
Tally Vault
without retaining information of the password used. Data is not accessible
Password
without the Tally Vault password. Remember to keep this password private
and known only to those who need to know. If the password is lost, your data
cannot be recovered.
Use Security Tally.ERP 9 has a range of security controls, which can define the authority of
Control various users to access the information and to enter/ alter/delete the vouchers.
Selecting a Company
1. For Loading or selecting a company press Alt + F3 or click on the cmp info button panel
to invoke company info menu. Select the option select company in the menu by pressing
the hot key S. in the select company window we see that a code is generated by the
system for each company together with the Financial Year information relating to the
number of years data represent in the company.
2. Highlight the company to be selected with the help of arrow keys ( Up arrow key and
Down arrow key) from the displayed List of companies and press Enter.
Shutting a Company
Shutting a company means unloading it.
1. Press Alt + F3 to invoke the Company Info. Menu.
2. Select the option Shut Company in this menu by pressing the hotkey H.
3. Highlight the company you wish to shut down from the list of companies and press Enter.
Altering/Modifying Existing Company
A company created can only be deleted in Alter mode.
1. Press Alt + F3 to invoke the company Info. Menu.
2. Press Hotkey A to select Alter option from the company info. Menu.
3. Highlight the company you wish to Alter from the List of companies and press Enter. You
have Company Alteration screen on your desktop.
4. Make required changes an accept it.
F11: Company Features in Tally
Different features of a company can be selected or modified by using the F11:
Features button. This button is available in almost all the screens of Tally.ERP 9 enabling the user
to modify it as and when your requirements change. F11: Company Features is specific to the
current company only. Therefore, each company may have different active features.
Configuration options, on the other hand, affect all companies maintained in the same Tally.ERP
9 directory and setting the configuration for one company will affect the configuration of other
companies in that particular data directory. The main components of Company Features are
‘Accounting Features, Inventory Features, and Statutory & Taxation’.

● Accounting Features: This feature enables you to set the various Accounting
Features required for transaction entries.
● Inventory Features: This feature enables you to set the Inventory Features required for
the transactions.
● Statutory & Taxation: This feature enables you to set the Statutory Features required for
the transactions.
● Audit Features: This feature enables you to set the Tax Audit Rules, Statutory Payment
Due dates for Tax Audit, Audit Working Paper and Statutory Compliance tools.

1. Integrate Accounts and Inventory:

This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set
to Yes, it extracts the stock/inventory balance figures from the inventory records and provides a
drill down to the Stock registers from the Balance Sheet. If set to No, it ignores the inventory books
figures and picks up manually entered closing stock balances from the ledger account created. This
facilitates the maintaining of accounts and inventory separately. Stock records often contain
compensating errors caused by wrong allocation to items. This feature enables finalization of
financial books without waiting for the reconciliation of stocks.

2. Income/Expense Statement Instead of P & L

By Default, this option is set to No. If set to Yes – Tally.ERP 9 displays Income &
Expenses A/c instead of Profit & Loss A/c in the Gateway of Tally.ERP 9 Menu. Income and
Expenditure statement generally used for Non-Trading accounts and Profit & Loss a/c are used
for trading accounts.

3. Allow Multi-Currency

By Default, this option is No. Set this option to Yes, if you want to create multiple
currencies and the Menu Currencies is displayed in Gateway of Tally > Accounts Info. menu.
4. Maintain Bill wise Details

The Bill-wise facility is made functional by setting this option to Yes. By activating the
Bill wise feature, the ledger masters under Sundry Debtors and Sundry Creditors automatically
displays an additional option called Maintain balances bill-by-bill. On setting this option to Yes,
an additional option Default Credit Period is displayed. When you enter details of sales and
purchases with the Bill-wise option activated, Tally.ERP 9 prompts you to identify the invoice
with an appropriate reference number. The reference can then be used to allocate payments to the
correct invoice to maintain an accurate account of outstanding.

5. Activate Interest calculation

Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the
interest rate and style of calculation specified. Enabling this option allows interest calculation on
outstanding balances for any ledger account or on each invoice for the period it is outstanding
completely or partly

Use advanced parameters: The advanced parameters are useful when interest rates change
from time to time. Set this option to Yes to enable this function.

6. Maintain Payroll

Set this option to Yes if you want to maintain Payroll information on Tally.ERP 9 for the
selected company.

7. Maintain Cost Centers

A Cost Centre can be defined as a unit of an organization to which transactions can be
posted. When only costs or expenses are allocated to these units, they are referred to as Cost
Centers. The Cost Centre feature is activated by setting this option to Yes.
Use Cost Center for Job Costing: Set this option to Yes to track all income and expenses
for a Job/Project.

More than One Payroll/Cost category: Set this option to Yes to create more than one Payroll
or Cost Category.

Use Pre-defined Cost Centre Allocations during Entry: Set this option to Yes to define
Cost Centre Allocations. Refer Cost Centers and Cost Categories for details.

Show Opening Balance for Revenue Items in Reports: Set this option to Yes to display
the opening balance in Cost Centre Report for the cost centers which are allocated to
the Ledgers, grouped under Income and Expenses Group.

8. Allow Invoicing
Set this option to Yes, to create Sales and Purchase vouchers in the invoice format. The
advantage of using the invoice format for sales invoice entry is that it enables automatic
calculations of Duties and Taxes accounts.

Enter Purchases in Invoice Format: Set this option to Yes, to enable voucher class option
in purchase voucher type.

9. Use Debit/Credit Notes: The Debit Note and Credit Note voucher types are made
available only if this feature is set to Yes.

Use Invoice Mode for Credit Notes: Set this option to Yes to create Credit Notes in Invoice
Mode.

Use Invoice Mode for Debit Notes: Set this option to Yes to create Debit Notes in Invoice
Mode.

10. Maintain Budgets and Controls

Set this option to Yes, to create multiple budgets. The Budgets menu option is displayed
in Gateway of Tally > Masters Info. > Accounts Info. Menu.

11. Use Reversing Journals & Optional Vouchers

Setting this option to Yes displays the Scenario option in Accounts Info menu. You will
now be able to create and alter Scenarios. You can enter the Reversing Journal and make it
Optional, so that the entries do not to affect the books.

12. Enable Cheque Printing:

Set this option to Yes, to enable Cheque Printing..

Alter Banking Features: Set this option to Yes to alter features with respect to Banking.
Refer Banking Features for details.

13. Allow Zero Valued Entries in Vouchers

Set this option to Yes, to allow Zero valued entries in vouchers.

14. Maintain Multiple Mailing Details for Company & Ledgers

Set this option to Yes, to maintain multiple mailing details for your company and ledgers.
Refer Multi Address for details.

F12: Configuration

Configuration can be selected or modified by using F12: Configure button. This button is
available in almost all the screens of Tally.ERP 9 enabling the user to modify it as and when your
requirements change. F12: Configure is application Level configuration and saved in a file known
as tallycfg.tsf. There are 15 items in the F12 configuration menu

The first two (General & Numeric) are self explanatory. The default settings need not be
changed. They are sufficient.

● General: You can configure Country Details, Style of Names, Style of Dates, Configuration
of Numbers in the General configuration screen.
● Numeric Symbols: This enables you to set the number styles. The default styles and
symbols are specified. However, you have the option of changing them in the respective
fields according to your preference. For example, change negative sign from (-) to (+).
● Accts / Inventory Info.: Here you can configure the details you want in the masters over
and above those provided by fault. You can access the F12: Configure screen
from Accounts Masters and Inventory Masters when required. The fields pertaining to
both Accounting and Inventory Info. can be configured here.
● Voucher Entry: This option allows you to configure the vouchers entries in Tally.ERP 9,
both the Accounting and Inventory Vouchers can be configured from this menu for
additional information.
● Invoice / Orders Entry: This allows you to configure invoice, delivery notes and sales &
purchase orders. The Invoice entry and Order entry screens can be configured for
additional information such as export details, shipping details, etc.
● Payroll Configuration: The other generic payroll related configurations can be set using
the Payroll Configuration screen. To view the Payroll Configuration screen, Go
to Gateway of Tally > F12: Configure > Payroll Configuration
● Printing: The printing option allows you to configure the printing parameters of a
Voucher, Invoice and Statement layouts before final printing.
● E-mailing: Mass mailing feature allows the user to e-mail a single report to multiple E-
Mail Ids i.e., the user can send e-mails to more than one e-mail id from a single screen,
while retaining the existing e-mail configurations. For instance, using this feature you can
send individual pay slip to each employee or mail Outstanding Statements, Reminder
letters and Confirmation of Accounts to the respective party or customers.
● Data Configuration: Tally allows the user to add or modify the path where
the Language, Data and Configuration files reside
● Message Centre: Mails regarding Product Updates, Stat Updates, Webinars, Tally Tips and
other events were sent to customers from Tally Solutions Pvt. Ltd. through mails to the
customers’ E-mail IDs. Now the same mails/messages will be available within the product,
i.e., the customer can view all these mails from your Tally. Message Centre is a new
feature in Tally.ERP 9 which allows users to access these mails from within the product.
● Product & Features: The TDL Configuration option in the F12: Configuration menu is now
called Product & Features, and serves as the dashboard for the new Tally Live Updates.
Users no longer have to log on to the website to check about the latest updates in the
product, instead the updates will be sent to them. Tally now allows users to install and
manage the product and stat updates, account TDLs, local TDLs, Tally Extensions, Add-
ons, etc., all from a single place – Tally Live Updates. The user can also configure the Tally
Live Updates such that he get alerts every time a new update is available or get an alert
once the update is downloaded.
● Advance Configuration: The user can add or modify the required parameters required for
Synchronizations, ODBC, Licensing and Tally.NET.