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Maintaining Group Company in Tally.ERP 9
The books of Account of different companies belonging to the same management or owners are required to
be consolidated to present the financial position of the group of companies as a whole. This is mandatory in
many developed countries and currently shareholders would rather know the performance of the group as a
whole and not the performance of individual constituent companies.
Tally.ERP 9 simplifies the task of consolidation of accounts. You can consolidate the accounts of any number
of companies as well as keep them separate.
The first step is to create a Group Company, which is simply a name and identity given to the merged
accounts of constituent (member) companies of the group. A group company may also include other group
companies.
Note: D o not confuse the w ord Group to re fe r to a me mbe r of the group! It si mpl y contai ns
the consoli date d accounts of me mbe r compani e s. In othe r w ords, i t i s the parent company �
unde r w hi ch you have the indi vi dual companie s.
Accounts Information
Accounts Info. menu lists the masters like Groups, Ledgers and Voucher Types through which you can
provide the details of your company's accounts.
Go to Gateway of Tally > Accounts Info.
Accounts Info. Menu Options
Accounts Information contains the masters. Each master has Create, Alter and Display functions.
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Single Group option is useful when you wish to work on one Group at a time. Multiple Group option is very
useful when you are working on many sub-groups at a time and saves a lot of time. Once a sub-group is
created, it behaves exactly like a Group.
Create
The Create option is used to create new masters.
Display
The Display option is used to view the Master information. Master information cannot be modified in
Display mode.
Alter
The Alter option allows you to view and make the necessary changes to the master information. This does
not allow the creation of masters.
Groups
Groups are collection of Ledgers of the same nature. 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.
The Group behavior is classified into Capital or Revenue and more specifically into Assets, Liabilities, Income
and Expenditure.
Pre-defined Groups in Tally.ERP 9
By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The user can create any
number of Primary Groups and Sub Groups which are again grouped under a Primary Group/Sub Group.
There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary Groups and 13 are SubGroups.
15 Primary Groups
13 Sub Groups
Branch / Divisions
Bank Accounts
Capital Account
Bank OD A/c
Current Assets
Cash-in-hand
Current Liabilities
Deposits (Asset)
Direct Expenses
Duties & Taxes
Direct Incomes
Loans
(Asset)
Fixed Assets
Provisions
Indirect Expenses
Reserves & Surplus
Indirect Incomes
Secured Loans
Investments
Stock-in-hand
Loans (Liability)
Sundry Creditors
&
Advances
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Misc. Expenses (ASSET)
Sundry Debtors
Purchase Accounts
Unsecured Loans
Sales Accounts
Suspense A/c
Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which are Capital in nature
and 6 Primary Groups appear under Profit & Loss Account which are Revenue in nature.
13 Sub Groups are classified under the 15 Primary Groups and they appear in the Balance Sheet.
Pre defined Sub Groups
Under
Bank Accounts
Current Assets
Bank OD A/c
Loans (Liability)
Cash-in-hand
Current Assets
Deposits (Asset)
Current Assets
Duties & Taxes
Current Liabilities
Loans & Advances (Asset)
Current Assets
Provisions
Current Liabilities
Reserves & Surplus
Capital Account
Secured Loans
Loans (Liability)
Stock-in-hand
Current Assets
Sundry Creditors
Current Liabilities
Sundry Debtors
Current Assets
Unsecured Loans
Loans (Liability)
A Discussion on Each of the Reserved Groups
Non Revenue � Primary Groups
Capital Account
This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts
are Share Capital, Partners' Capital A/c, Proprietor's Capital Account and so on.
Reserves and Surplus [Retained Earnings]
This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so
on.
Current Assets
Current Assets record the assets that do not belong either to Bank Accounts or to Cash-inHand sub-groups.
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Bank Accounts
Current account, savings account, short term deposit accounts and so on.
Cash-in hand
Tally.ERP 9 automatically creates Cash A/c in this group. You can open more than one cash account,
if necessary.
Note: An account unde r Cash-i n-hand group or Bank Accounts/Bank OCC A/c group i s
pri nte d as a se parate Cash Book i n the tradi ti onal Cash Book format and doe s n ot form part
of the Le dge r.
Deposits (Asset)
Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company (not
received by the company, which is a liability).
Loans & Advances (Asset)
This records all loans given by the company and advances of a non-trading nature (example:
advance against salaries) or even for purchase of Fixed Assets. We do not recommend you to open
Advances to Suppliers� account under this Group. For further details, please refer to the section on
Common Errors.
Stock-in-hand
This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods. The balance
control depends on whether you have selected Integrated Account-cum-Inventory option while
creating the company. (refer to Company creation section for more details) Let us consider these
options:
Integrated Accounts-cum-Inventory
This option has a significant effect on the Balance Sheet and Profit & Loss Account. If set to Yes, it
brings the stock/inventory balance figures from the inventory records and provides a drill down to the
Stock registers from the Balance Sheet.
You are not allowed to directly change the closing balance of an account under this group. You are
allowed to pass transactions in Inventory records and the account balances are automatically
reflected in the Balance Sheet as Closing Stock.
Non-integrated Accounts-cum-Inventory
If Integrated Account-cum-Inventory option is set to No, it ignores the inventory books figures and
picks up manually entered closing stock balances from the ledger account created. This provides the
facility to maintain accounts separately and inventory separately.
You are not allowed to pass transactions if your accounts that come under this Group. It allows you
to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they
are the only accounts for which the closing balances can be directly altered (by an authorised user
only).
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Sundry Debtors
For customer accounts refer to common and possible errors in grouping of accounts section.
Current Liabilities
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created
directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and
Sundry Creditors
Duties and Taxes
Duties and Taxes contain all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and
the total liability (or asset in case of advances paid) and the break-up of individual items.
Provisions
Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under
Provisions.
Sundry Creditors
For trade creditors, refer to common and possible errors in grouping of accounts section.
Investments
Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank
deposit accounts and so on. This allows you to view the total investments made by the company.
Loans (Liability)
Loans that a company has borrowed, typically long-terms loans.
Bank OD Accounts [Bank OCC Accounts]
Tally.ERP 9 provides you with distinct types of Bank Accounts,
Bank OCC A/c
To record the company's overdraft accounts with banks. For example, Bill Discounted A/c�s and
Hypothecation A/c�s etc.
Note: An account unde r Bank OCC A/c group i s pri nte d as a se parate Cash Boo k i n
the traditi onal Cash Book format and doe s not form p art of the Le dge r.
Secured Loans
Term loans or other long/medium term loans, which are obtained against security of some asset.
does not verify the existence of the security. Typical accounts are Debentures, Term Loans, and so
on.
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Unsecured Loans
Loans obtained without any security. Example: Loans from Directors/partners or outside parties.
Suspense Account
In modern accounting, many large corporations use a Suspense Ledger to track the money paid or
recovered, the nature of which is not yet known. The most common example is money paid for
Traveling Advance whose details will be known only upon submission of the Travelling Allowance bill.
Some companies may prefer to open such accounts under Suspense Account.
Loans and Advances (Asset) group.
The Suspense Account is a Balance Sheet item. Any expense account even if it has 'suspense' in its
name, it should be opened under Revenue group like Indirect Expenses and not under Suspense
Account group.
Miscellaneous Expenses (Asset)
This group is typically used for legal disclosure requirements such as Schedule VI of the Indian
Companies Act. It should hold incorporation and pre-operative expenses. Companies would write off
a permissible portion of the account every year. A balance remains to an extent that cannot be
written off in Profit & Loss Account. Tally.ERP 9 does not show loss, carried forward in the Profit &
Loss Account, under this group. The Profit & Loss Account balance is displayed separately in the
Balance Sheet.
Branch/Divisions
This maintains ledger accounts of all your company's branches, divisions, affiliates, sister concerns,
subsidiaries and so on. Tally.ERP 9 permits Sales and Purchase transactions to take place with
accounts opened here. Remember, these are their accounts in your books and not their books of
accounts. Just treat them as any other party account. If you wish to maintain the books of a
branch/division on your computer, you must open a separate company. (Tally.ERP 9 allows
maintenance of multiple company accounts).
Revenue � Primary Groups
Sales Account
You can classify your sales accounts based on Tax slabs or type of sales. This also becomes a simple
mechanism for preparation of Tax returns.
Examples:

Domestic Sales

Export Sales
Now under Domestic Sales open the following ledgers:

Sales (10%)

Sales (5%)
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Sales (exempt)
You can even open an account as Sales Returns under the group Domestic Sales to view your net
sales after returns (or the returns may be directly passed through Journal against the specific Sales
account).
Note: D o not cre ate custome r accounts unde r thi s group. For more de tai l s, re fer to common
and possi bl e e rrors in groupi ng of accounts se cti on.
Purchase Account
This is similar to sales accounts, except for the type of transactions.
Direct Income [Income Direct]
These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under
Sales Accounts. You may also use this group for accounts like Servicing, Contract Charges that follow
sales of equipment.
For a professional services company, you may not use Sales Account group at all. Instead, open
accounts like Professional Fees under this group.
Indirect Income [Income Indirect]
These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.
Direct Expenses [Expenses Direct]
These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the
company.
Indirect Expenses [Expenses Indirect]
All administrative, selling or non-direct expenses.
Profit & Loss Account is a reserved primary account in Tally.ERP 9. You can use this account to pass
adjustment entries through journal vouchers. For example, transfer of profit or loss account to
Capital or Reserve account.
Common and Possible Errors in Grouping and Account Classification
Debtor/Creditor classification
Accounts of parties with whom your company is trading should be opened under any of the following groups
(or sub-groups under them):

Sundry Debtors

Sundry Creditors

Branch/Divisions
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Sales and Purchase account groups are meant for revenue accounts and are reflected in the Profit & Loss
Account. If you open party accounts under these groups, it becomes difficult to pass sales or purchase
voucher transactions.
For example, in a sales voucher transaction entry, you must debit an account, which can be sundry debtor,
branch/division or even a sundry creditor. Moreover, other facilities like bill-wise allocation and tracking will
not be available unless the accounts belong to one of these groups.
Opening two accounts of the same party
Tally.ERP 9 classifies debtors, creditors and branch/divisions for convenience. This helps you in the process
of keeping the accounts of a particular group together during display and analysis. Thus you can pass both
sales and purchase entries for a party account placed under Sundry Debtors. Use the classification
depending on the most natural group for the party.
For example, parties from whom you buy frequently can be placed under Sundry Creditors, as that is the
natural place to look for their account. Tally.ERP 9 does not restrict the accounts from having obverse
balances. Thus, a Sundry Debtor can have a credit balance depending on the state of his account.
Therefore, you need not open two accounts for the same party - one under Sundry Debtors and another
under Sundry Creditors. Tally.ERP 9 restricts opening of two identical ledger accounts. In such cases, you
may decide to circumvent by marking one account as "A & Co - S/Dr" and another "A & Co - S/Cr". This will
allow you to have two accounts of the same party under two groups, but you will lose the advantage of
analyzing net position at a single instance. It is always better to maintain a single account to obtain best
benefits.
Expenditure items are entered under Liabilities group. For example, the expenditure item Rates & Taxes
under the group Duties and Taxes.
The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates &
Taxes and other statutory expenses should be placed under Indirect Expenses.
Simply adhering to the reserved groups may be sufficient for many organizations. For greater diversity,
Tally.ERP 9 allows you to create your own groups, either as sub-groups or primary groups. Groups can be
sub-classified to practically an unlimited level, giving you a virtual accounting tree. At the lowest level, of
course, would be the ledger account.
Note: Whi l e i t i s ne ce ssary to assi gn e ve ry le dge r to a group/ sub - group, i t i s not e sse nti al
to have your ow n sub - classi fi cati on of accounts; you may si mpl y use the re se rve d groups
for groupi ng your l e dge r accounts.
Creating a Group
In Tally.ERP 9 there are two options for creating Groups:
1.
Single Group � We can create only one Group by using Single Group creation screen.
2.
Multiple Groups � We can create multiple Groups by using Multiple Group Creation screen.
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Creating a Single Group
Group is a collection of Ledgers of the same nature, Tally.ERP 9 allows you to create groups as per your
requirements.
Go to Gateway of Tally > Accounts Info. > Groups > Create under Single Group
The Group Creation screen is displayed as shown:
Name of Group
Enter the name of the Group to be created. For example �Administrative Expenses� in the name field.
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Alias
Enter an alias name to allow access to the group using the Alias in addition to its name or leave it blank.
For example, for Administrative expenses, you can enter Office Expense or even an alphanumeric code, say
E001, as an alias
Under
Specify under which existing (Parent) group the sub-classification is required.
Note: If i t i s a ne w pri mary group, se l e ct Pri mary ( requi re me nt of a ne w pri mary group i s
ve ry rare , but the opti on exi sts) . Cre ati on of ne w Primary Group i s not all owe d i f Al l ow
Advance d e ntri e s i n Maste rs i s se t to No i n F12: Confi gure . You can also cre ate a new
Pare nt Group by usi ng Al t+ C .
Tally.ERP 9 has the flexibility of creating the related Masters from specified screens:
Button
Shortcut
Keys
Behaviour
L: Ledgers
Ctrl+L
Navigate to Ledger Creation screen
V: Vch Types
Ctrl+V
Navigate to Voucher Creation Screen
Creating a Group with advanced usage
This section deals with the additional fields you would input during creation of Group, you will be able to configure
the information to your requirements like Group behaves like sub-ledger, Nett Debit/Credit Balances for
Reporting, Used for Calculation and Method to allocate when used in purchase invoice.
Go to Gateway of Tally > Accounts Info > Groups > Create under Single Group > select F12
configure (Group Configuration) and enable Allow Advanced entries in Masters under Accounts
Masters.
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Creation of 'Printing' Group under Primary Group:
Advanced options:
Nature of Group
If a group (e.g Printing) is created under Primary, you must select the appropriate option from the list
whether it is an asset, liability, income or expenses. If you select an income or expenses you should specify
whether it will affect the gross profits or not by suitably setting the option Does it affect Gross Profits? to
Yes/No.
If the option is selected as Yes, the Group will appear under Trading Account and if the option is selected
as No, the Group will appear under Profit & Loss Account.
You can use this concept when you wish to segregate your profits into Operative Profit and Net Profit. This
helps you when you want to consider other revenue accounts in addition to Direct instead of Gross and Net
Profit.
Normally, Tally.ERP 9 calculates Gross Profit using Opening Stock, Purchase Accounts, Direct Expenses,
Sales Accounts, Direct Incomes and Closing Stock only. To make other accounts contribute to this, without
classifying under these reserved heads, set this option to Yes.
Group behaves like sub-ledger?
This option will allow such Groups to behave as defined in the Master to act as equal to the behavior of
Ledger.
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When Group behaves like sub-ledger is set to No, the same will display all the Ledgers grouped under
the same in detailed mode.
When the Group behaves like sub-ledger is set to Yes, the same will not display the Ledgers grouped
under the same in detailed mode.
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The same is helpful in reports when there is a large number of Ledgers under any Group.
Nett Debit/Credit Balances for Reporting?
Setting this option to Yes will display either the net debit or credit balance in the report (whichever is
higher). If this is set to No, both debit and credit balances will be displayed in the report.
Used for Calculation (e.g. taxes, discounts)?
Set this option to Yes if ledgers under this group would have percentages for discounts/taxes to be used in
invoice entry. This gets reflected while passing voucher entry in Invoice mode and for automatic
calculations.
Method to allocate when used in purchase invoice
Select the appropriate allocation method from the list. This is used to allocate the expense of the Item in
the ratio of the quantity or value.
Buttons in Group Creation Screen with advanced usage:
Button
Shortcut
Keys
Behaviour
L: Ledgers
Ctrl+L
Navigate to Ledger Creation screen
S: Cst Cat
Ctrl+S
Navigate to Cost Category Creation screen
C: Cst Ctr
Ctrl+C
Navigate to Cost Centre Creation screen
O:Employee Groups
Ctrl+O
Navigate to Employee Groups Creation screen
E: Pay Heads
Ctrl+E
Navigate to Pay Head Creation screen
P: Employee
Ctrl+P
Navigate to Employee Creation screen
T: Attd Type
Ctrl+T
Navigate to Attendance/Production Type Creation
screen
U: Units
Ctrl+U
Navigate Unit Creation screen
B: Budget
Ctrl+B
V: Vch Types
Ctrl+V
Navigate to Budget Creation screen
Navigate to Voucher Type Creation screen
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The default buttons available are Ledgers and Voucher Types and the rest of the options displayed based on
the features enabled in F11:F1: Accounting features.
Note: F12: C onf i gurati on change s affe ct all compani e s and change s made
i n F11:Features affe ct only the curre nt company.
Creating Multiple Groups
Tally.ERP 9 allow you to create Multiple Groups simultaneously, you can create them by pressing Enter on
Create under Multiple Groups.
Go to Gateway of Tally > Accounts Info. > Groups > Create (under Multiple Groups)
You can create any number of Groups under an already created/selected Group. In this mode of group
creation, the sub-groups will automatically inherit the characteristics of their parent groups.
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You can also create any number of Groups under different Groups by selecting All Items in �Under Group�
field.
Under Group
Select the parent group under which you want the new groups to be created from the List of Groups. The
group selected is displayed in the Under Group field.
Name of Group
Enter the name of the Group.
Under
If you select any group other than All Items in the Under Group field, then this column is filled in
automatically with the selected Group name and the cursor skips this column. This speeds up data entry.
If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter
the parent group of each of them.
Note: To change i ndi vi dual group be havi or cre ate d usi ng mul ti ple groups, use singl e group
al ter opti on.
Buttons in Multiple mode Group creation
Button
Shortcut
Keys
Behaviour
F4: Parent
F4
The Parent Group can be changed
L: Ledgers
Ctrl+L
Navigate to Ledger Creation screen
S: Cst Cat
Ctrl+S
Navigate to Cost Category Creation Screen
C: Cst Ctr
Ctrl+C
Navigate to Cost Centre Creation Screen
O:Employee Groups
Ctrl+O
Navigate to Employee Group Creation Screen
P: Employee
Ctrl+P
Navigate to Employee Creation Screen
Note: The de faul t buttons avai l abl e are Parent and Le dge r and the re st of the opti ons
di spl aye d are base d on the fe ature s e nable d i n F11: F1 Accounti ng f eature .
Displaying a Group
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You can display the Groups in Single mode or Multiple mode, since it is only display Tally.ERP 9 does not
allow you to alter any information in display mode.
Single Mode:
Go to Gateway of Tally > Accounts Info. > Group > Display (under Single Group)
Select the name of
the Display mode.
the
Group from
the List
of
Groups.
You
cannot
make
any
changes
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Displaying a Single Group
Multiple Mode:
Go to Gateway of Tally > Accounts Info > Group > Display (under Multiple Group)
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Displaying Multiple Groups
Select the Group from the List of Groups to display all the Groups under the selected Group or select All
Items to display all Groups. The Multi Group Display screen lists Groups and the corresponding details of
the Groups.
Button:
F4: New Parent (Ctrl+F4) - You can navigate to select any other Group in the display mode by selecting
this button from the Button Bar.
Altering a Group
You can alter the Groups in Single mode or Multiple mode by selecting Alter from the menu to change any
information. You can change the Name of any reserved group, but its characteristics will remain the same.
Single mode:
Go to Gateway of Tally > Accounts Info. > Group > Alter (under Single Group)
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Select the Group that you wish to alter from the List of Groups. Make the necessary changes and click Yes
to save the changes.
Altering a Single Group
Multiple Mode:
Go to Gateway of Tally > Accounts Info. > Group > Alter (under Multi Groups)
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Altering Multiple Group
Select the Group for which you want to alter from the List of Groups. In Multi Group Alteration screen,
make the necessary changes and click Yes to save changes.
Deleting a Group
Go to Gateway of Tally > Accounts Info > Groups > Single/Alter
The Delete function is performed through the single alteration mode. You cannot delete groups from
the Multiple Alteration mode.
1.
Select the Group to be deleted.
2.
Press Alt+D to delete.
Note: You cannot de le te a group i f i t i s a re se rve d group or a group that has sub - groups or
l e dge rs i n it. A ne w group cre ate d unde r pri mary w il l not be re fl ecte d in re ports until you
pass maste rs/ transacti ons for that group.
Managing Groups in Multiple Companies
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Copying masters from one company to another
Master information is the same for most group companies and it is certainly beneficial to maintain same
group structure and ledgers. This becomes necessary if you have a parent company with subsidiaries or
branches. This ensures uniformity of reports in all companies and proper consolidation of accounts. To avoid
the tedious process of re-creating masters in other companies, Tally.ERP 9 enables you to copy the groups
created in one company to another in alteration mode.
Copying a single group from one company to another:
To copy the masters from one company to another, you need to select both the companies i.e., Source
Company (from where the Master has to be copied) and Destination Company (To the company in which we
have to copy the Master) in Gateway of Tally to switch between companies.
Go to Gateway of Tally > Select Company ABC Company
Go to Gateway of Tally > Select Company XYZ Company
The source company should be listed first in the Gateway of Tally (ABC Company)
Go to Gateway of Tally > Accounts Info. > Groups > Single Group > Alter
1.
Select a particular group, for example select Southern Debtors created under Sundry
Debtors.
2.
Select F3: Company Button: to switch over to the destination company (XYZ Company
3.
Accept the screen, after making alterations, if any.
If the parent of the group does not exist, you will not be able to accept the screen without selecting a parent
in the destination company.
Once you accept the screen, you are taken back to the source company list of groups. The same group now
exists in the destination company.
Copying multiple groups from one company to another
1.
Select ABC Company and XYZ Company from the Gateway of Tally. The source company
should be listed first in Gateway of Tally (ABC Company)
2.
Go to Gateway of Tally > Accounts Info > Groups > Multiple Groups > Alter > Select a
particular Group or All Items from the list
3.
Click on F3: Company button or press F3 key to switch over to the destination company
4.
Accept the screen, after making additions/alterations, if any.
5.
Once you accept the screen, you are taken back to the source company List of Groups. The
same group now exists in the destination company. The above method of copying masters is
possible only if the books of accounts are maintained on the same computer.
The above methods can be also used for copying other masters like ledgers, cost categories and cost
centres.
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Note: The al ternate me chani sm for transferri ng i nformati on be tw ee n compani es i s to use
the Export of D ata and Import of D ata.
Ledgers
A Ledger is the actual account head to which you identify a transaction and must be used in all Accounting
Vouchers. Without a ledger we cannot record any transactions.
Ex: Purchase, payments, sales, Receipts, etc, all these accounts heads are ledger Accounts.
All Ledgers have to be classified into Groups. Classification of Ledgers to the appropriate groups is very
important. These Groups and Ledgers are classified to Profit & Loss or Balance Sheet. The creation and
usage of Groups in Tally.ERP 9 has been explained earlier. Now you will learn how Tally.ERP 9 works with
Ledgers.
Pre-defined Ledgers in Tally.ERP 9
There are two pre-defined ledgers available in Tally.ERP 9, they are:
Cash
This Ledger is created under the Group Cash-in-hand. You can enter the opening balance as on the date of
books beginning from. You can also alter the name and even delete the Ledger.
Profit and Loss Account
This Ledger is created under the Group Primary. Previous year�s Profit or Loss is entered as the opening
balance for this ledger. The balance entered here is treated as the opening profit/loss and shown in the
Balance Sheet as opening balance of Profit and Loss account in the Liabilities side.
You cannot delete this ledger, but you can modify the same.
Creating a Ledger
Go to Gateway of Tally > Accounts Info. > Ledgers
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You can create either Single or Multiple Ledgers.
Importance of Grouping and Accounting Classifications
Debtor/Creditor Classification
1. Placing individual party accounts under Sales or Purchase Accounts groups:
Accounts of parties with whom your company has trade relationship must be opened under one of the
following groups (or sub-groups under them) only:

Sundry Debtors

Sundry Creditors

Branch/Divisions
Sales and Purchase account groups are meant for revenue accounts and would be reflected in the Profit &
Loss Account. If you open party accounts under these groups, you will find it difficult to pass sales or
purchase voucher transactions. For example, in a sales voucher transaction entry, you must debit an
account which is a sundry debtor, branch/division or even a sundry creditor (why a creditor? - it will be
explained soon). Moreover, other facilities like bill-wise allocation and tracking will not be available unless
the accounts belong to one of these groups.
2. Opening two accounts of the same party
For convenience Tally.ERP 9 has separately classified debtors, creditors and branch/divisions. There is no
operational distinction except for the purpose of keeping the accounts of a particular group together during
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displays and analysis. You can pass both sales and purchase entries for a party account placed under Sundry
Debtors.
We recommend that you use the classification depending on the most natural group for the party. For
example, parties from whom you buy more frequently then you sell to can be placed under Sundry
Creditors, as that would be the natural place for you to look for his account.
Tally.ERP 9 does not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a
credit balance depending on the state of his account.
Note : You nee d not ope n tw o accounts of the same party - one unde r Sundry De btors and
anothe r unde r Sundry Cre di tors.
Remember, Tally.ERP 9 restricts you from opening two identical ledger accounts. Of course, you may decide
to circumvent by marking one account as A & Co - S/Dr and another A & Co - S/Cr. Doing this would
allow you to have two accounts of the same party under two groups, but you would lose the advantage of
analyzing his net position at one instance. We recommend that you maintain a single account to obtain best
results.
3. Placing expenditure items under a Liabilities group, e.g., the expenditure item 'Rates & Taxes'
under the group 'Duties and Taxes'.
The group Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates &
Taxes and other statutory expenses should be placed under Indirect Expenses.
reating a Single Ledger
By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit and
Loss Account (direct Primary Account). You need to create all other accounts heads. There are no
restrictions in Ledger creation except that you cannot create another Profit & Loss A/c. Any number of Cash
Accounts may be created in any other name for ex: Petty Cash.
Go to Gateway of Tally > Accounts Info > Ledgers > Create
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Ledgers can be created in Normal mode or in Advance mode.
Creating Ledger in Normal Mode
The creation of a Ledger depends on the features you have selected under F11: Features of your company
and F12: Configure. You can create a single ledger account with the default options enabled.
Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger > Create
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Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all in. Press
Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names. The uniqueness
check is made here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its recognition of
a name. Thus, CST, C.S.T. and C. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data
entry.
Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias name.
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Under
All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger
is created from the List of Groups. (To create a new Group from this field press [ALT + C]). A wrong
classification would affect the treatment of the Ledger account in final statements and during voucher entry.
You can, alter a Ledger account to change its group classification at any time. Refer Importance of Grouping
and Accounting Classifications: for more details in Grouping
Opening Balance
If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance would be
applicable in circumstances where the Ledger is an asset or a liability and if it has a balance in the account
as on the date of beginning of books in Tally.ERP 9.
Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances for
Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have balances.
Tally.ERP 9, however, permits you to give balances even for such accounts - You may be transferring your
books on to Tally.ERP 9 in the middle of the year and may not have closed them in your earlier system.
Hence, you may specify whether the balance is Debit or Credit. Simply D or C would suffice.
Creating a Purchase / Sales Ledger
Purchase / Sales ledgers are required for trading, repacking or for usage in manufacturing products. Sales and
Purchase account groups are meant for revenue accounts and are reflected in the Profit & Loss Account.
To create a Purchase / Sales Ledger,
Go to Gateway of Tally > Accounts Info > Ledgers > Create
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Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However,
Tally.ERP 9 does not restrict to particular accounts as you may have the need to affect inventory with
accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.
Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a
transaction. .
You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this
option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost
Center (Which involves this ledger) set this option to Yes.
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 for this ledger account.
Use advanced parameters: The advanced parameters are particularly useful where interest rates
change from time to time. Set this option to Yes to enable this.
Creating a Expenses / Income Ledger
Expense ledgers must be created for each of the expense account separately.
To create a Expenses / Income ledger,
Go to Gateway of Tally > Accounts Info > Ledgers > Create
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Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However,
Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with
accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.
Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a
transaction. .
You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this
option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost
Center (Which involves this ledger) set this option to Yes.
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 for this ledger account.
Use advanced parameters: The advanced parameters are particularly useful where interest rates change
from time to time. Set this option to Yes to enable this.
Creating a Party Ledger
Party Accounts should be opened under Sundry Debtors or Sundry Creditors group with whom your company is
trading.
Customers (Sundry Debtors) who buy goods or services for cash or on credit. Suppliers (Sundry Creditors) who
supply goods and services for cash or on credit.
To create a Party Ledger,
Go to Gateway of Tally > Accounts Info > Ledgers > Create
The Party Ledger account screen is displayed as shown:
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Currency of Ledger: Tally.ERP 9 allows you to maintain Ledgers in any currency and the amount is
reflected in the selected currency. But it is strongly advised that you maintain the currency of the Ledger as
the Base currency.
Only foreign currency bank accounts are maintained in foreign currency and other ledgers are maintained in
Base Currency. Nevertheless you can enter transactions in any other currency.
To create/maintain ledgers in multiple currency, set Allow Multi Currencies to Yes under F11: Features.
You can always create a new currency from this field by pressing Alt+C.
For more information on Currencies, refer Mult-Currency.
Maintain Balances Bill-by-Bill: This option is applicable when you want the balances to be maintained Bill
by Bill or Bill wise. Normally, this option is useful for Ledgers falling under Sundry Debtors & Sundry
Creditors. If you set this option to Yes, while entering the opening balance in the Opening Balance field at
the end of Ledger Creation screen and press Enter, the Bill-wise Breakup screen of the Ledger created is
displayed as shown.
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Date: Since you are giving the break-up of the Opening Balance, the date of the bill would naturally be prior
to the accounting period. By default Tally.ERP 9 takes last date of your previous accounting period, e.g., 31
March 2008. Change it, if necessary.
Name: Enter a Name to which you can later refer when adjusting the bill. You can enter the Bill number or
Document number.
Due date (or credit days): For the Ledgers under Sundry Debtors and Creditors, give the credit period
or the date when the bill is due.
Note: D uri ng transacti on entry, the re w oul d be anothe r conce pt - that of e ffe cti ve date . If
you opt for usi ng ef fecti ve dates i nste ad of bi ll dates the due date w oul d be cal cul ate d
accordi ngl y.
Amount: For the amount of the bill due, you can give particulars of all the pending bills one by one.
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If the total amount of all your bills covers the Opening Balance, the On Account becomes NIL. You could
have Bills totaling beyond the Opening Balance. In the screen shown below, there are two bills 50,000,
25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If
you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify
On Account.
Default Credit Period:
The Credit period may be given for Sundry Debtors and Sundry Creditors. The number of Credit days or
period can be defined in various ways:

Days: If there is no suffix given to the number of credit days, then it is taken as Days. For Ex:
If you enter just the number 5, then it is considered as 5 Days.

Weeks: If W is given as suffix to the number of credit period, then it is taken as Weeks. For
Ex: If you enter 5 W, then it is taken as 5 Weeks.

Months: If M is given as suffix to the number of credit period, then it is taken as Months. For
Ex: If you enter 5 M, then it is taken as 5 Months.

Year: If Y is given as suffix to the number of credit period, then it is taken as Year. For Ex: If
you enter 5 Y, then it is taken as 5 Years.
Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc..
However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect
inventory with accounts like Customs Duty, and perhaps, direct expenses related to purchases such as
Freight Inwards.
Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a
transaction. .
You have set Maintain Cost Centres to Yes in F11: Features:F1:Accounting Features, to get this
option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost
Center (Which involves this ledger) set this option to Yes.
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 for this ledger account.
Use advanced parameters: The advanced parameters are particularly useful where interest rates change
from time to time. Set this option to Yes to enable this.
Statutory Information: This functionality is available only, if you have enabled at least one of the options
under F11: Features> F3: Statutory & Taxation. Based on the options enabled under F3: Statutory &
Taxation, the respective fields will be displayed in the Statutory Information section.
Mailing Details: is applicable only for party accounts like Sundry Debtors, Creditors and Branch Divisions,
Branch/Divisions, Bank & Bank OCC A/c, Loans & Advances Assets, Loans & Advances Liabilities, Secured &
Unsecured Loans, etc. These are used in mailing outputs like statement of accounts.
Tax Information: The Tax Information consists of the default fields PAN/IT No. and the TIN/SALES Tax No.
Based on the features you enable in F11: Features> F3: Statutory & Taxation, additional fields will
appear under Taxation.
Other Information: In this section information of the relationship and enterprise type of the party with whom the
transaction carried out is entered
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
Is Related Party: If the party under creation is related to the business organisations set the
option to Yes. Other wise it will be retained as No
o

S.P.SHARMA
Relationship: This option is a suboption of Is Related Party. This field will be displayed
only when the option Is Related Party is set to Yes. In this field mention the relationship with
the party.
Enterprise Type: In this field select the enterprise type from the Type of Enterprise as
information collected from the party.
Note: O ther Inf orm ati on se cti on w ill be di splaye d in Ledger Master Creati on scre en onl y
w hen the opti on Use O ther Inf ormati on f or Ledger Accounts i s se t to Yes i n F12:
Ledger C onfi gurati on
Percentage of Calculation: This field is applicable only for Ledgers created under the Group Duties and
Taxes, or for Ledgers created under any Group for which Used for Calculation is enabled in the Group
Creation screen.
Option Bank Reconciliation in Ledger master creation screen:
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Effective date for Reconciliation option will appear when a ledger is created under Bank Account group.
Give the date of reconciliation on which you would like to reconcile the voucher.
Creating a Duty and Taxes Ledger
Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like VAT, CENVAT,
Excise, Sales and other trade taxes and total liability.
To create a Tax Ledger,
Go to Gateway of Tally > Accounts Info > Ledgers > Create
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Type of Duty/Tax: This option is based on statutory compliance of company. For Indian statutory, by
default, it will show the Excise and Others. Depends on features in F11: Statutory, more options will be
included in the Type of Duty/Tax.
Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However,
Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with
accounts like Customs Duty and perhaps, direct expenses related to purchases such as Freight Inwards.
Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a
transaction.
You have to set Maintain Cost Centres to Yes in F11: Accounting Features, to get this option in the
Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center, set this
option to Yes.
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 for this ledger account.
Use advanced parameters: The advanced parameters are particularly useful where interest rates change from
time to time. Set this option to Yes to enable this.
Percentage of Calculation
The Group Duties and Taxes is used for automatic tax calculation. You need to specify the rate of tax e.g. 5%,
10%, 12.5% etc. You can use an automatic Discount calculation facility by specifying a negative percentage in
this field. On entering a percentage, a new field Method of Calculation is displayed. From the Method of Calculation,
you can select appropriate options to calculate the Tax/Duty.
Rounding Method
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This is used to round off the duty value. By default rounding method will be Blank. Once you select rounding
Method, rounding Limit sub option will be displayed. Here you can specify the round off limit.
For Example:
For Duty value 123.33 and rounding Limit is 1,



Downward rounding will show as 123
Normal rounding will show as 123
Upward rounding will show as 124
For Duty value 125.55 and rounding Limit is 1,



Downward rounding will show as 125
Normal rounding will show as 126
Upward rounding will show as 126
Creating a Current Liabilities / Assets Ledger
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under
Current Liabilities and Assets can be classified as Current assets and Fixed assets.
To create Fixed Assets ledger,
Go to Gateway of Tally > Accounts Info > Ledgers > Create
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Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory.
Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However,
Tally.ERP 9 does not restrict to particular accounts as you may have the need to affect inventory with
accounts like Customs Duty, and perhaps, direct expenses related to purchases such as Freight Inwards.
Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a
transaction. .
You have set Maintain Cost Centres to Yes in F11: Features: F1:Accounting Features, to get this
option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost
Center (Which involves this ledger) set this option to Yes.
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 for this ledger account.
Use advanced parameters: The advanced parameters are particularly useful where interest rates change
from time to time. Set this option to Yes to enable this.
Creating a Ledger with Advanced Usage
The information required for creating Ledgers depends on the features selected by you under F11:
Features and F12: Configure. The Ledger Creation screen will have additional fields depending on your
feature settings for your company. If you set the field Allow ADVANCED entries in Masters in F12:
Configure (Ledger Configuration) as Yes, you can work in Advanced.
Enable the following features in F11:Features (F2:Accounting Features):

Allow Multi-Currency

Maintain Billwise Details

Maintain Cost Centres

Activate Interest calculation
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Enable all the options under Accounts Masters in F12: Configure (Ledger Configuration):
Creating Multiple Ledgers
You can create multiple Ledgers at a time in this mode. This will save the time of the user.
Go to Gateway of Tally > Accounts Info > ledgers > Multiple ledgers > Create
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Under Group
Select the name of the group under which you want to create the Ledgers from the List of Groups.
Below this field, the other fields are arranged in a table. The cursor rests at the field Name of Ledger.
The other fields in the column are:
Sl.No
This is auto generated.
Name of Ledger
Enter the name of the Ledger.
Under
If you select All Items in Under Group field, you have the option to select the group in this column. You can
even create a new group from this field by pressing Alt+C. If you have selected any other Group in Under
Group, the selected group in Under Group gets displayed here automatically and the cursor skips this
column.
Opening Balance
This is the balance remaining when you first enter your books on Tally.ERP 9 9, i.e., the date of beginning of
books. If you have opted to maintain balances bill-by-bill, you must give the bill details. (Refer Creating a
Ledger- Advanced Usage for more details on this)
Dr/Cr
Specify whether the Opening Balance is Debit or Credit. Tally.ERP 9 follows the normal accounting principals
of accounting.
Note: Whi l e cre ati ng Le dge rs i n mul ti ple mode , the fi el d Cost Ce ntre s are appl icabl e , i s se t
to Ye s for Re ve nue accounts and No for Non- Re ve nue accounts by de faul t. The fie l d
Inve ntory val ue s are affe cte d i s se t to Ye s for Sale s and Purchase Accounts and No for the
othe rs by de faul t.
Displaying / Altering a Ledger Account
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Information under Display and Alter is the same. Display option does not permit any modification. Alter
option permits you to alter the information.
You are allowed to alter any information of the ledger master with the exception of the Closing Balance of a
ledger account, if any, other than closing balance of accounts under the group Stock-in-hand.
Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter
Modification of Account Ledgers is possible under Single Ledgers as well as Multiple Ledgers option. However
under Multiple Ledgers, all the fields are not available for alteration
Deletion:
You can delete the ledger if no vouchers have been created under this ledger.
Go to Gateway of Tally > Accounts Info > Ledgers > Alter > Press Alt+D
If you want to delete a Ledger for which Vouchers have been created, then you have to first delete all the
Vouchers from that Ledger and then delete the Ledger Account.
Buttons available:
Keys
Description and Usage
G: Groups
Buttons
Ctrl+G
You can create �Stock Group� from the Stock Item Creation
screen
E: Currency
Ctrl+C
Currency You can create �Currency� from the Stock Item
Creation screen
S: Cst Cat
Ctrl+S
You can create � Cost Category� from the Stock Item
Creation Screen
C: Cst Ctr
Ctrl+C
You can create �Cost Center� from the Stock Item Creation
screen
B: Budget
Ctrl+B
You can create �Budget� from the Stock Item Creation
Screen
V: Vch Types
Ctrl+V
You can create �Voucher Type� from the Stock Item
Creation screen
Voucher Types
By default in Tally.ERP 9, there are 18 different pre-defined Voucher types (where Payroll feature is
enabled, the number of pre-defined voucher types will be 20). Voucher type pertains to Accounting,
Inventory and Payroll. These are used for recording various transactions according to the user needs.
Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined
voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales
transactions e.g. Credit Sales, Cash Sales, etc.
If a voucher type is created, you can:

Have the different Voucher numbering methods.
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
Give own prefix and suffix details for the voucher numbering.

Use the Effective Dates for the vouchers.

By default, make some vouchers optional if required.

Decide to have the Common Narration or Narration for each entry.

Automate the printing immediately after saving the vouchers.

Get separate reports for each type of voucher.
S.P.SHARMA
Pre-defined Voucher Types in Tally.ERP 9
Go to Gateway of Tally > Display > List of Accounts > Ctrl+V [Voucher Types]
Or
Go to Gateway of Tally > Accounts info / Inventory Info > Voucher types > Alter
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Alter a predefined voucher type
Even if you do not need extra voucher types, you would normally alter the predefined voucher types to
customise them according to your needs, e.g., to control their numbers.
Go to Gateway of Tally > Accounts info / Inventory Info > Voucher types > Alter
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Creating a Voucher Type
Tally.ERP 9 acknowledges the special requirements of some users for more voucher types. These arise in cases
where the user needs the same voucher but in different names or separate series of numbers.
To create a Voucher Type,
Go to Gateway of Tally > Accounts Info/ Inventory Info > Voucher Type > Create
The Voucher Type creation screen is divided into three sections depending on various settings.
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General

Printing

Voucher Class
S.P.SHARMA
Name
Give the name of the new voucher type, e.g., Sales Invoice.
Alias
Give the alias, if required.
General
Type of Voucher
The type of voucher should be any one of the predefined voucher types (already listed). The new voucher
type would inherit the properties of this predefined voucher type. It would function exactly like the
predefined voucher.
Abbr (Abbreviation)
An abbreviation is required particularly for unformatted reports, which do not use compressing techniques.
(Tally.ERP 9 allows printing of both formatted and unformatted reports). Even if the Abbreviation is not
specified, Tally.ERP 9 automatically sets a default name for the Voucher. In this example, Sale is the
abbreviation. Though there is no restriction on the length of the abbreviation, it should preferably consist of
five characters or less.
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Method of Voucher Numbering
This is, perhaps, one reason for your opting for a new voucher type. There are three methods available:
Automatic
This method is flexible. If Automatic method is selected, then Tally.ERP 9 numbers the vouchers
automatically.
Manual
This method allows you to number the vouchers manually. It does not check for the sequence of the
numbers and permits you to specify anything that you wish in the voucher number field. However, you may
choose to prevent entry of duplicate numbers. If you would like to do so, then set Prevent
Duplicates to Yes.
1.
Prevention of Duplicates is possible if you enable the option at the time of creation. You may
enable it later (by alteration) only if there are no transactions of this voucher type.
2.
If you face difficulty due to existing transactions, just create another voucher type for
preventing duplicates of subsequent voucher numbers.
None
This will disable numbering of such vouchers. If you select this method, no further information is required.
Use Advance Configuration
If the Method of Voucher Numbering is set to Automatic, then an additional field to set the advanced
configuration for the Voucher type is displayed. Setting this field to Yes, Voucher Type Creation (Secondary)
screen is displayed. Refer to Use Advance Configuration for more details.
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A further discussion on these options is necessary.
Use EFFECTIVE dates for vouchers?
Select Yes if you want to enter effective dates for vouchers. You would opt for this if you have instances
where a transaction under consideration for overdue/ageing analysis is recorded currently but will come into
effect from another date. If the effective date is entered, the overdue/ageing will be considered from
the effective date and not from voucher date.
Make Optional as Default
Setting this option to Yes, will set your Voucher to Optional Voucher by default. Refer to Optional Vouchers
for further details.
Note: For Mem orandum and Reversi ng Journal vouche r the opti on Make O ptional as
Def aul t w ill not be show n.
Use common narration?
Select Yes to give a common narration for the entire voucher. Tally.ERP 9 vouchers can have multiple
entries. Hence, you may wish to give a common narration for all the entries of the voucher. Select No, if
you do not want a common narration.
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Example of common narration in a voucher:
Narrations for each entry
Select Yes, if you want to give a separate narration for each entry of a voucher. This would be applicable for
a multiple entry voucher where you want separate details for each entry. Select No if you do not want a
separate narration for each entry.
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Note: To ge t the Narrati on f or each entry rai se the sal e s i n As Voucher and
for Paym ent or Recei pt vouche rs, se t Use Si ngl e Entry mode f or
Pym t/Rcpt/C ontra to No i n F12:Conf i gurati ons .
For Delivery Note, Receipt Note, Sales order, Purchase order, Physical Stock, Stock Journal, Rejection In and
Rejection Out, the option Narration for each entry is deactivated.
Printing
Print after saving voucher?
Select Yes to print every voucher after entering it, else select No. This is suitable for an online environment
where you use Tally.ERP 9 printed vouchers as the formal voucher. Remember, that the transaction is
already recorded and posted and should you wish to make corrections to the printed voucher, you must alter
the Tally.ERP 9 voucher online and print it again.
Note: If w e se l e ct Re ce i pt as Type of Voucher the opti on Pri nt Formal Receipt af ter
savi ng w ill be di splaye d. D e pendi ng on the Type of Vouche r you have sele cte d to cre ate or
al ter, di ffe rent pri nti ng fe ature s appe ar i n thi s fie l d.
Use for POS Invoicing
If you would like to use the sales invoice as POS invoice then set this option to Yes.
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Default Print Title
If you would like to give the default print title for POS Invoice then specify the same. So when ever you
print the POS Invoice this title will be printed.
Note: D e faul t pri nt Ti tle opti on wi ll appe ar onl y i n Sal es Vouche r Type .
Voucher Class
Name of Class
You can create classes by entering the class name in this section. A detailed discussion on Voucher class
creation is covered in Voucher Class.
Stock Journal Voucher Type
The option Use Manufacturing Journal will be enabled for Stock Journal Voucher type
Creating a Voucher Type with Advanced Configuration
If the Method of Voucher Numbering is set to Automatic, then an additional field to set the advanced
configuration for the Voucher type is displayed. On setting this field to Yes, the Advanced Voucher Type
Configurationscreen is displayed.
The Voucher Type Alteration will appear as shown :
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Starting number
Give the number for the first voucher. Usually it is 1. You can set it to any number you want. Tally.ERP 9
will auto-increment from this number for subsequent vouchers. However, the numbering of vouchers also
depends on other variables selected by you, explanations of which will follow hereafter.
Width of Numerical Part
You may leave it blank to let Tally.ERP 9 automatically adjust the width according to the number. However,
if you would like to have a specific width to be fixed then set the same. e.g., 3.
Prefill with ZERO?
When the width is specified, the digits before the voucher number are left blank if this option is set to
�No�.
E.g. Sales Invoice No: 1
If this option is set Yes, it pre-fills the space with zeroes based on the width of numerical part specified.
E.g. If the Width of Numerical Part is specified as 3, and if Pre-fill with Zero is set to Yes, then it display
the voucher number as below:
Sales Invoice No: 001
If Width of Numerical Part is specified as 4, then it displays the voucher number as below:
Sales Invoice No: 0001 and so on.
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Restart Numbering
Voucher Numbering may be restarted with the starting number (as specified) at intervals selected by you
- Daily, Monthly, Never, Weekly or Yearly. You must give the date when the numbering should restart in the
fieldApplicable from. The date must be the first day of the month. You can specify more than one Restart
dates. For example, should you wish to renumber your vouchers from 01 June 08 on a yearly basis, you
must specify it in the next field. This would retain the numbering system in the prior period. If, however,
you want to change the numbers from the beginning from monthly to yearly basis, simply alter the first
field itself.
Prefix Details
If you want the voucher numbers to be prefixed with some fixed information, enter the information here.
Examples of prefix details are:
1.
month of the voucher - April/
2.
company info like ABC/
3.
even fixed number series like 1000
Note: The numeri c porti on be gi ns i mme diatel y afte r the pref i x informati on. The re fore , be
sure to gi ve a space or a sl ash ' /' or some spe ci al characte r to hi ghli ght a se parati on, e .g.
w e have spe ci fie d Apri l/ . The sl ash w oul d cause the vouche r numbe r to appear as Apri l / 001,
othe rwi se i t w oul d appe ar as Apri l 001. Thi s faci li tates si mple usage for fi xe d numbe r se rie s
appe ari ng as 200100001 whe re 2001 is the pre fi x, and 00001 i s the starti ng numbe r w i th a
w i dth of 5, and w ith le adi ng ze ros.
You can choose different prefix information for different periods or continue with one. The prefix continues
from the date you mention under Applicable from till the next date that you may give under Applicable
from. Hence, we have chosen to change the prefix from April to May when the month changes. Please note,
however, that if we omit to change the prefix for the subsequent months (i.e. do not give Applicable
from date for the month), your voucher numbers for even June, July etc would contain the prefix 'May/'.
Suffix Details
You can also give fixed suffix information for the voucher number. The same rules and effects as for Prefix
Details are applied.
The Sales Invoice voucher number looks like this:
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Voucher Class
Voucher Classes are used to automate Accounting Allocations in transactions. It is a table for predefining
the entries to make Invoice entry a simple task. This is particularly useful in sales invoicing where the
nominal ledger accounts, to be credited for each item of sale is defined once. During voucher entry, the
accounting credits for items sold are done automatically. Additional accounting entries like, tax, freight, and
other charges can be predefined to be carried out untouched during actual invoicing.
Voucher Classes are available for all major voucher types like:
1.
Contra
2.
Payment
3.
Receipt
4.
Journal
5.
Sales
6.
Credit Note
7.
Purchases
8.
Debit Note
9.
Sales Order
10. Purchase Order
11. Delivery Note
12. Stock Journal
Creating a Purchase Voucher Class
Purchase Voucher Classes are templates where you can restrict accounts to be used in entries as well as
automate accounting entries for items and expenses.
You can either alter the existing Purchase Voucher Type or create a new voucher type based on the
requirements.
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Go to Gateway of Tally > Accounts Info > Voucher Type >Alter > Purchase
Give a name to the class under Name of Class say Purchase Class. You can create more than one class.
(Make sure that Enter Purchases in Invoice Format in F11 feature is enabled to create class). Create the
class as follows:
Default Accounting Allocations
All the stock items that will be entered in the voucher using this class will be automatically allocated to this
Ledger account Local Purchases. Of course, the stock item record remains as it is and can be viewed
separately.
Pass a Purchase entry using the created Purchase Class:
Go to Gateway of Tally > Accounting Vouchers > F9 Purchase > and select the Class.
1.
Select the Supplier Account.
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You will observe that the Ledger Accounts grouped under Sundry Debtors are also listed as you have not
specified any condition to exclude Sundry Debtors Group. If you have specified Sundry Debtors under
Exclude option, then Tally would have displayed the Ledgers excluding those Ledgers grouped under Sundry
Debtors.
Please note that the Freight Ledger is automatically displayed and the user has to only specify the value.
Once you select Item B, specify the Quantity and rate, the value will be automatically calculated and the
cursor will directly move to the Name of Item field instead of popping up the Accounting Allocations
for screen.
Creating a Sales Voucher Class (Inclusive of Tax)
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This is used when the Tax amount is included in the Sales value and the same is illustrated with an
example.
You can either alter the existing Sales Voucher Type or create a new voucher type based on their
requirements.
Go to Gateway > Accounts Info > Voucher Types > Alter > Sales
Give a name to the class under Name of Class say Sales Class B. You can create more than one class.
Specify the table of class as below:
Now pass Sales Invoice and check,
Go to Gateway of Tally >Accounting Vouchers > select Sales Class BF8 Sales
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The total value of the sale is Rs. 1500/=. Select the entry in alteration mode, move the cursor till the
amount field and check.
The total value is allocated to Sales and Tax Ledgers, as defined in the voucher class.
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Creating a Sales Voucher Class with Override using Item default
You can either alter the existing Sales Voucher Type or create a new voucher type based on their
requirements.
Go to Gateway > Accounts Info > Voucher Types > Alter > Sales
Give a name to the class under Name of Class say Sales Class A. You can create more than one class.
Specify the table of class as shown:
Override using Item Default:
Item default refers to the Default Ledger account that you had set for a Stock Item. It is possible to enter a
Tax Invoice having multiple items with different VAT/Tax Rates. Item default refers to the Sales Ledger
account that you may have set for a stock item.
If you set Override using Item default to Yes and specify a Sales Ledger in the Class Table, the sales
Ledgers set in the item masters will still be considered.
Create Stock Item say Item D and Item E and set Yes to option Set/Modify Default Ledgers for
Invoicing and specify as below: (To display this option, enable Specify Default Ledger Allocation for
Invoicing in F12 configure).
Item D:
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Item E:
Now pass the Sales entry and check:
Go to Gateway of Tally >Accounting Vouchers > F8 Sales > select Sales Class A
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The VAT Ledgers are selected automatically.
Select Party�s name and select Item D and Item E and check.
The Items will be automatically allocated to the Ledgers defined in Item Master and VAT calculation
automates and facilitates the user to pass the entries faster and with ease.
Voucher Classes for Payment, Receipt and Contra Vouchers
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Voucher Classes for Payment, Receipt and Contra Vouchers
The primary intention of using classes for payment, receipt and contra vouchers is to enable data input
in single entry or list mode rather than in Tally's traditional double entry mode.
Let us take an example of a Payment Voucher.
You can either alter the existing Payment Voucher Type or create a new voucher type based on your
requirements.
Go to Gateway of Tally > Accounts Info > Voucher Types > alter Payment
Take the cursor to the Name of Class field. Give a name to the class say Cash Payment. You can create
more than one class.
The Class Table
Exclude these Groups and Include these Groups
Using this option, you can select only those groups pertaining to the Class, which makes the entry simpler.
Ledger Name
Selecting the ledger account that will be used to pay out the money will eliminate the need to select it
during entry. In this case, it is Cash Account. While passing the payment voucher, the Cash-Location B
account will be automatically selected. You may even select 'Not Applicable'. The purpose of selecting 'Not
Applicable' will be, to permit Single Entry mode and at the same time retaining the option of selecting the
account during entry.
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Note: Excl ude or Incl ude Groups are i rrel e vant w he n you spe ci fy a Le dge r Name for w hi ch
the class is cre ate d. The y are use ful whe n you sel ect Not Appl i cabl e .
Voucher Class for Journals
Voucher Classes in Journals is used to handle Forex Gain Loss Adjustments for companies having MultiCurrency Accounts. You would create a 'class' in the normal way (Accounts Info > Voucher Types > Alter >
Journal). Having selected the class during Voucher Entry, you will find only those Ledger Accounts appearing
which have a Gain/Loss to be adjusted as of the date of voucher and auto-calculation of these amounts.
Voucher Class for Debit Notes and Credit Notes
Voucher classes for Credit Notes are similar to sales invoices except for one important inclusion. You can
set the class for interest entries to enable adjustment of interest payable. If the Interest option is selected,
the other sales invoice-like options will not be available. A separate class may to be created for entries like
Sales Returns. Since Sales and Purchase Invoice classes have already been dealt with, we shall not
elaborate on this behavior anymore.
Debit Note classes can be set for interest entries only. Classes for other entries are not available as the
invoice mode of entry is not possible for Debit Notes.
Creating a Payment Voucher Entry with Class
Select Accounting voucher from Gateway of Tally. Press F5: Payment. You have to select a class
or Not Applicable, if no class is desired for this entry. If Cost Centre Class has been set, it can also be
selected.
The entry will be made as follows:
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The Voucher Class is Cash Payment. Once the voucher class is selected, the Cash Ledger is automatically
selected and you need to select only the Ledgers which are to be debited. Please note that the entry is not
done in the regular Dr/Cr format. Data entry in Tally.ERP 9 is very rapid. This feature makes it much more
faster!
Cost Centre Class
The purpose of Cost Centre Classes is to facilitate predetermined allocation of cost centres to Ledger
accounts (like expenses and incomes) during voucher entry.
How does it work?
The Automation of cost centre allocation involves creation of classes and predefining percentages for cost
centres.
Cost centre classes affect all voucher types. In voucher entry, depending upon the cost centre class, the
allocation will be carried out in the background without the allocation screen being displayed at all.
More:

Set up required for Cost Centre Classes

Voucher Entry with Cost Classes

An explanation of Types of Calculation
Set up Required for Cost Centre Class
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Before you select classes, it is advisable to create the cost centre structure.
Define the Classes required and indicate which cost centres will be affected for each class. For example,
you might have the following structure:
Divisions
1.
Export
2.
Wholesale
3.
Retail
Departments
1.
Finance
2.
Marketing
Where Divisions and Departments are Cost Categories and the others are cost centres.
Now, you would like to allocate sales to the following Cost Centre Classes:
1.
Export Class - to allocate 100% of Export sales to the cost centre Export
2.
Wholesale Class - to allocate 100% of wholesale sales to the cost centre Wholesale
3.
Retail Class - to allocate 100% of retail sales to the cost centre Retail
You would also like to allocate all the sales (Export, Wholesale and Retail) to the Marketing Department.
Along with the above mentioned, you would also like to allocate Marketing Expenses on a pro-rata in the
following manner:
1.
Finance � 50%
2.
Marketing � 50%
With this structure, let us now set up the classes.
Set up Cost Centre Classes
Go to Gateway of Tally > select F11: F1: Accounting Features
Set Use Pre-defined Cost Centre Allocations during Entry to Yes
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(The other options can remain as previously set and are not discussed here.)
Click on Enter, which will pop up Auto Cost Allocations-Cost Centre Classes creation screen. Type the
Class name and select the Categories and the respective cost centres. Specify the percentage of
allocation. After entry, your auto-cost allocation screen will be displayed as shown:
You have created the Cost Centre Classes as Export, Wholesale, Retail and Marketing Expenses. Divisions
and Departments are cost categories. Export, Wholesale and Retail are cost centres under Divisions.
Marketing and Finance are cost centres under Departments.
It is not necessary to have the same names for the classes and the cost centres, as shown in the above
example.
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Inventory Information
Inventory Information
The Inventory Info menu, lists the inventory masters like Stock Group, Stock Items, Units of Measure of
the company, using which you can create, alter and display the inventory master details.
Go to Gateway of Tally > Inventory Info
Note: The Inve ntory Info me nu i s di spl aye d i n the Gate way of Tal l y, i f you sel ect Type of
company as Mai ntai n Accounts wi th Inventory i n the Company Cre ati on scree n.
Inventory Configurations & Features (F11 & F12)
Configuration of Inventory
By using F12:Configure, you can enable the required settings of Inventory Masters.
By default, the settings pertaining to Inventory Masters are set to No. If you set them to Yes, the
features will be enabled. Typically, they are additional fields that appear during Masters creation which
enable you to obtain more information and detailed analyses. Refer Accts/Inv Info. Configuration for more
details.
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Note: If you pre ss F12 anyw he re i n the Me nu, i t wil l take you to the conf i gurati on me nu.
Features of Inventory
By using F11:Features, you can enable the various settings under inventory features which determine the
information to be entered during transaction entries.
Functions in Inventory Info. Menu
Inventory
information
contains
has Create, Display and Alter functions.
the
inventory
masters.
Each
master
These three functions are grouped under:
1.
Single
2.
Multiple
In Single, you can execute the function on one master. In Multiple, you can execute the function on
multiple masters.
Functions
Create
The Create option is used to create new masters. Any modification to the masters can be done only through
the Alter mode.
Display
The Display option is used to view the Master information. Master information cannot be modified in Display
mode.
Alter
The Alter option allows you to view and make the necessary changes to the master information. This does
not allow creation of masters. In Alteration mode, you can delete the master. [Press ALT+D for deletion]
Stock Group
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the
classification of Stock Items.
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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, etc.
Grouping enables you to locate Stock Items easily and report their details in statements.
Example:
Stock Item
Sub Group
Main Group
Brand A - 19� TFT
Brand A
Grade One
Brand A - 17� CRT
Brand A
Grade One
Brand B - 19� TFT
Brand B
Grade Two
Brand B - 17� CRT
Brand B
Grade Two
You now have ready details of Grade One and Grade Two products, duly classified. You can also view the
sub group classification.
Go to Gateway of Tally > Inventory Info. > Stock Groups
Creating a Stock Group
Stock Items are classified into stock groups to reflect their classification based on some community.
To create a Stock Group,
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group)
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A brief description on each of the fields in the Stock Group Creation screen follows:
Name
Enter the name of the Stock Group to be created. For example, Grade One.
Alias
Enter additional name apart from primary name [if required]. You can create any number of additional
names.
Under
Specify whether it is a primary group or a sub-group of another group, by selecting from the list.
Press Alt+C to create a parent group, if you do not have it in the list.
Can quantities of items be ADDED?
This field pertains to information on measuring the units of the Stock Items that you would categorise under
the Stock Group.
The Stock Items categorised under the group should have similar units for them to be added up. You cannot
add quantities in Kgs to quantities in Pcs.
Note: You can al ways go back and re se t thi s opti on afte r assessing the uni ts of the i te ms in
the group.
Buttons specific to stock group creation:
Buttons
Short Cut
Keys
Description & Use
C: Category
CTRL+C
Allows you to Create a Stock Category.
I: Items
CTRL+I
Allows you to Create a Stock Item.
U: Units
CTRL+U
Allows you to Create a Unit of Measure.
O: Godown
CTRL+O
Allows you to Create a Godown
V: Vch Types
CTRL+V
Allows you to Create a Voucher Types
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Note: C ategory and Godown buttons are vi si bl e only i f you have opte d for the same
i n F11: Features .
Creating Multiple Stock Groups
Tally.ERP 9 allows you to create Stock Groups using single or multiple options.
To create Multiple Stock Groups,
Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)
Select the parent group under which you want the new groups to be created from the �List of Groups�.
A brief description on each field in the Multi Stock Group Creation screen is given below:
Name of Stock Group
Enter the name of the Stock Group.
Under
If you select any group other than All Items in the Under Group field, then this column is filled in
automatically with the selected Group name and the cursor skips this column. This speeds up data entry.
If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter
the parent group for each one of them.
Items are Addable? (Y/N)
You can select whether units of the Stock Items under Stock Group are to be added or not.
Buttons specific to Multi Stock Group Creation screen
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Buttons
Short
cut keys
S.P.SHARMA
Description & Use
F4: Parent
CTRL+F4
Allows you to change the parent for all sub groups.
F8: Skip Details
F8
Cursor will not go to Column Items are Addable (Y/N). If Items are
addable is to remain the same as specified for further subgroup
creation, use this button. The cursor skips the column which speeds
up data entry.
C: Category
CTRL+C
Allows you to Create a Multi Stock Category.
I: Items
CTRL+I
Allows you to Create a Multi Stock Item.
O: Godown
CTRL+O
Allows you to Create a Multi Godown
Displaying a Stock Group
You can display the existing Stock Group in Single mode and multiple mode, since it is only display Tally.ERP
9 does not allow you to alter any information in display mode.
Displaying Single Stock Group
Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single Stock Group)
Select the Stock Group whose particulars you want to display from the List of Groups. The Stock Group
Display screen is displayed as shown.
Buttons specific to stock group Display mode:
Buttons
Short cut Keys
Description & Use
C: Category
CTRL+C
Allows you to Display a Stock Category.
I: Items
CTRL+I
Allows you to Display a Stock Item.
U: Units
CTRL+U
Allows you to Display a Unit of Measure.
O: Godown
CTRL+O
Allows you to Display a Godown.
V: Vch Types
CTRL+V
Allows you to Display a Voucher Types
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Note: C ategory and Godown buttons are vi si bl e only i f you opte d for the same i n F11:
Features.
Displaying Multiple Stock Groups
Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple Stock Groups)
Select the Stock Group from the List of Groups.
If you select All Items from the List of Groups, all the Groups and sub Groups are displayed.
If you select Grade One from List of Groups, all the sub Groups related to Grade One will be displayed.
Buttons specific to Multi stock group Display mode:
Buttons
F4: Parent
Shortcut
Keys
CTRL+F4
Description & Use
Allows you to select parent [Stock Group] from List of Group. Selected
Stock Group will get displayed.
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C:Category
CTRL+C
Allows you to select Category from List of Categories. Selected Stock
Category will get displayed.
I: Items
CTRL+I
Allows you to select Stock Group from List of Groups. Selected Stock
Group will display related stock items.
O: Godown
CTRL+O
Allows you to select Godowns from List of Godowns. Select Godowns will
get displayed.
Note: C ategory and Godown buttons are vi si bl e onl y i f you have opte d for the same
i n F11: Features.
Altering a Stock Group
This option allows you to view the existing Stock Group in edit mode, here you are allowed to change the various
information.
To alter a Stock Group,
Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Single Stock Group)
Select the Stock Group from the List of Groups. The Stock Group Alteration screen is displayed as
shown.
Make the necessary changes and click Yes to accept or press Ctrl+A to Save.
Deletion is possible only in the mode,. For deleting the Stock Group, Press ALT+D.
Note: You cannot del ete a stock group , i f i t i s use d by any sub groups or stock i te ms. In
orde r to de l e te the Stock Group, fi rst de le te the re levant sub groups and Stock i t e ms.
Buttons specific to stock group Alter mode:
Buttons
Short cut Keys
Description and Keys
C: Category
CTRL+C
Allows you to Alter a Stock Category.
I: Items
CTRL+I
Allows you to Alter a Stock Item.
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U: Units
CTRL+U
Allows you to Alter a Unit of Measure.
O: Godown
CTRL+O
Allows you to Alter a Godown.
V: Vch Types
CTRL+V
Allows you to Alter a Voucher Types
Note: C ategory and Godown buttons are vi si bl e only i f you have opte d for the same
i n F11: Features .
Altering Multiple Stock Groups
Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Multiple Stock Groups)
Select the Stock Group from the List of Groups. The Multi Stock Group Alteration screen is displayed as
shown.
Make the necessary changes and click Yes to accept or Press CTRL+A to save.
Note: You cannot de le te a Stock Group from mul ti ple mode .
Buttons specific to Multi stock group Alter mode:
Buttons
Short cut
Keys
Description and Use
F4: Parent
F4
Allows you to select Stock Group from Under Group Field for changing
the parent of sub groups.
F4: Parent
CTRL+F4
Allows you to select parent [Stock Group] from List of Group. You can
alter the sub groups of selected Stock Group.
F6: Skip Names
F6
Cursor will not go to Column Name of Stock Group. If you want to alter
only the details of �Under� Column and �Items are addable� then you
can skip names.
F7: Skip Parent
F7
Cursor will not go to column Under. If you do not want to alter parent
then you can skip parent.
F8: Skip Details
F8
Cursor will not go to column Items are addable. If you do not want to
alter Items are addable then you can skip details.
C: Category
CTRL+C
Allows you to Alter a selected stock Category in Multi-stock category
screen.
I: Items
CTRL+I
Allows you to Alter a selected Item in Multi Stock Item screen.
O: Godown
CTRL+O
Allows you to Alter a selected Godown in Multi Godown screen.
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Note: C ategory and Godown buttons are vi si bl e only i f you have opte d for the same
i n F11: Features .
Stock Categories
Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based
on similarity in behaviour.
For example,
Stock Item
Sub Group
Main Group
SubCategory
Main
Category
Brand A - 19� TFT
Brand A
Grade One
TFT
Monitor
Brand A - 17� CRT
Brand A
Grade One
CRT
Monitor
Brand B - 19� TFT
Brand B
Grade Two
TFT
Monitor
Brand B - 17� CRT
Brand B
Grade Two
CRT
Monitor
The advantage of Categorizing items is that you can classify the stock items (based on functionality)
together � across different stock groups which enables you to obtain reports on alternatives or substitutes
for a stock item.
You now have the details of TFT and CRT products, duly classified. You can also view the Monitor
classification.
For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features >
Set Yes for Maintain Stock Categories.
Go to Gateway of Tally > Inventory Info. > Stock Category
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Creating a Stock Category
This option allows parallel classification of stock items. Like Stock Groups, Stock Categories are also classified
based on some similar behaviour.
This enables you to obtain reports for alternatives or substitutes of a stock item.
To create a Stock Categories,
Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Single Stock Category)
The Stock Category Creation screen is displayed as shown.
A brief description of each field in the Stock Category Creation screen is given below:
Name
Enter the name of the Stock Category.
Under
Specify whether it is a primary category or a sub-category of another category. Select Primary from the
list, if you do not have a parent group. Use ALT + C to create a parent if you do not have the required
category in the list.
Buttons specific to stock category creation:
Buttons
Short Cut
Keys
Description and Use
G: Groups
CTRL+G
Allows you to Create a Stock Group.
I: Items
CTRL+I
Allows you to Create a Stock Item.
U: Units
CTRL+U
Allows you
Measure.
O: Godown
CTRL+O
Allows you to Create a Godown
V: Vch Types
CTRL+V
Allows you to Create a Voucher Types
to
Create
a
Unit
of
Note: Godown buttons are vi si bl e onl y i f you have opte d for the same i n F11: Features.
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Creating Multiple Stock Categories
Tally.ERP 9 allows you to create Stock Categories using single or multiple options.
To create Multiple Stock Categories,
Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Multiple Stock
Category)
The Multiple Stock Category Creation screen is displayed as shown.
A brief description of each field in the Multi Stock Category Creation screen is given below:
Under Category:
This field will display the List of Categories. You can select a category for which a multiple sub-category
can be created.
If you select All Items in List of categories, selection of parent category Under column is possible during
creation of sub-category.
If you select specific category in List of Categories, that category will get populated automatically
whenever creation of sub-category and cursor skips Under column.
Name of the category
Specify the name of the Stock Category.
Under
If you have select All Items in Under Category, you must specify a parent category in this column.
Buttons specific to Multi Stock Category screen:
Buttons
Short Cut
Keys
Description and Use
F4: Parent
F4
Allows you to change the parent for all
Categories.
G: Groups
CTRL+G
Allows you to Create a Multi Stock Group.
I: Items
CTRL+I
Allows you to Create a Multi Stock Item.
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O: Godown
CTRL+O
S.P.SHARMA
Allows you to Create a Multi Godown
Displaying a Stock Category
You can display the existing Stock Category in Single mode and multiple mode, since it is only display
Tally.ERP 9 does not allow you to alter any information in display mode.
Displaying a Single Stock Category
Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Single Stock
Category)
Select the Category for which you want to view the display details from the List of Categories.
The Stock Category Display screen shows the details entered in Stock Category Master.
Buttons specific to stock Category Display mode:
Buttons
Short Cut Keys
Description and Use
G: Group
CTRL+G
Allows you to Display a Stock Group.
I: Item
CTRL+I
Allows you to Display a Stock Item.
U: Units
CTRL+U
Allows you to Display a Unit of Measure.
O: Godown
CTRL+O
Allows you to Display a Godown.
V: Vch Types
CTRL+V
Allows you to Display a Voucher Types
Note: Godown buttons are vi si bl e onl y i f you have opte d for the same i n F11: Features.
Displaying Multiple Stock Categories
Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Multiple Stock
Categories)
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Select the Stock Category from the List of Categories.
If you select All Items from the List of Groups, all the categories and sub categories are displayed.
If you select Monitor from the List of Categories, all the sub categories related to Monitor will be
displayed.
Buttons specific to stock group Display mode:
Buttons
Short Cut Keys
Description and Use
F4: Parent
CTRL+F4
Allows you to Display a Stock Group.
G: Groups
CTRL+G
Allows you to Display a Stock Item.
I: Items
CTRL+I
Allows you to Display a Unit of Measure.
O: Godown
CTRL+O
Allows you to Display a Godown.
Note: Buttons are vi si bl e onl y i f you have opte d for the same i n F11: Features.
Altering a Stock Category
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This option allows you to view the existing Stock Category in edit mode, here you are allowed to change the
various information.
To alter a Stock Category,
Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Single Stock
Category)
Select the Stock Category from the List of Categories.
The Stock Category Alteration screen is displayed as shown.
Make the necessary changes and click Yes to accept or press CTRL+A to Save.
Deletion is possible only in the alteration mode,. For deleting the Stock Category, Press ALT+D.
Note:
You cannot de le te a stock Cate gory, i f i t is use d by any sub Cate gory or stock i te ms. In
orde r to de l e te the Stock Cate gory, fi rst del e te the rel e vant sub Cate gory and Stock i te ms.
Buttons specific to stock group Alter mode:
Buttons
Short Cut
Keys
Description and Use
G: Groups
CTRL+G
Allows you to Alter a Stock Group.
I: Items
CTRL+I
Allows you to Alter a Stock Item.
U: Units
CTRL+U
Allows you to Alter a Unit of Measure.
O: Godown
CTRL+O
Allows you to Alter a Godown.
V: Vch Types
CTRL+V
Allows you to Alter a Voucher Types
Note: Godown buttons are vi si bl e onl y i f you have opte d for the same i n F11: Features.
Altering Multiple Stock Categories
To alter Multiple Stock Categories,
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Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Multiple Stock
Categories)
Select the Stock Category from the List of Stock Categories. The Multi Stock Group Alteration screen
is displayed as shown.
Make the necessary changes and click Yes to accept or Press CTRL+A to save.
Note: You cannot de le te a Stock Cate gory i n mul ti ple mode .
Buttons specific to Multi stock Category Alter mode:
Buttons
Short
Cut
Keys
Description and Use
F4:Parent
F4
Allows you select Stock Category from Under Category Field for
changing the parent of sub Category.
F4: Parent
CTRL+F4
Allows you to select parent [Stock Category] from List of Category. You
can able to alter the sub Category of selected Stock Category.
F6: Skip Names
F6
Cursor will not go to Column Name of Stock Category. If you want to
alter only the details of Under Column then you can skip names.
F7: Skip Parent
F7
Cursor will not go to column Under. If you do not want to alter parent
then you can skip parent.
G: Groups
CTRL+G
Allows you to Alter a selected stock Group in Multi-stock Group screen.
I: Items
CTRL+I
Allows you to Alter a selected Item in Multi Stock Item screen.
O: Godown
CTRL+O
Allows you to Alter a selected Godown in Multi Godown screen.
Note: Godown buttons are vi si bl e onl y i f you have opte d for the same i n F11: Features.
Stock Items
Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and is the
lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP 9 for each
inventory item that you want to account for.
Go to Gateway of Tally > Inventory Info. > Stock Items
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Creating a Stock Item
Stock items are goods that you manufacture or trade (sell and purchase). It is the primary inventory entity. Stock
Items in the Inventory transactions are similar to ledgers being used in accounting transactions.
Two Modes of Stock Item Creation:
1.
Normal Mode
2.
Advance Configuration Mode.
Creation of Stock item in Normal Mode:
To create a Stock Item,
Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under Single Stock Item)
Stock Item creation is displayed as shown:
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A brief description of each field in the Stock Item Creation screen follows:
Name
Specify the name of the Stock Item.
Alias
Specify the Alias name of Stock Item (if required).
Under
This field will show the List of Groups. Here you can select the Stock Group to which the Stock Item
belongs. By default, Primary Stock Group appears in this field.
Note: You can cre ate a new stock Group by pre ssi ng ALT+C at thi s fiel d.
Units
This field will show the Unit List. Here you can select the Unit of measurement applicable for the stock item.
By default, Not Applicable appears in this field.
Note: You can cre ate a new Uni t by pre ssi ng ALT+C at thi s fie l d.
Rate of duty
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Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of excise duty or
if duty is based on item rate. During Invoicing, whenever you select a Stock Item, the Rate of duty entered
here is displayed in the Invoice creation screen.
Note: In F11 Inve ntory fe ature s, i f Al l ow Invoi ci ng i s se t to No the n Rate of D uty fi el d
w il l not be vi si bl e .
Tariff Classification
Specify the Tariff Classification for the item, if applicable.
This field will appear only when you specify a value in the Rate of Duty field.
Opening Balance
Specify the details of Opening Stock, if any, for the Stock Item as on the date of Beginning of Books.
1.
In the Quantity Field, specify the stock item Quantity, say 5 Nos.
2.
In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece.
3.
In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity
and Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field
accordingly.
Note: If Uni t fi e l d i s Not Appl i cable then the cursor w il l move
from Q uanti ty and Rate Fi el d.
Buttons specific to Single Stock item creation:
Buttons
Short Cut Keys
Description and Use
G: Groups
CTRL+G
Allows you to Create a Stock Group.
I: Items
CTRL+I
Allows you to Create a Stock Item.
U: Units
CTRL+U
Allows you to Create a Unit of Measure.
O: Godown
CTRL+O
Allows you to Create a Godown.
V: Vch Types
CTRL+V
Allows you to Create a Voucher Types
Note: C ategory and Godown buttons are vi si bl e only i f you opte d for the same i n F11:
Features.
Creating a Stock item in Advance Mode
Advance mode means enabling advance
in F12:Configure and F11:Features.
configuration
and
Features
for
stock
item
master
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Shown below are the advance configuration parameters
(Master Configuration) :
S.P.SHARMA
for stock item master under F12:Configure
Shown below are the advance Features for stock items in F11:Features:
Note: You can confi gure the e nti re se tup accordi ng to your re qui re me nts. Accord i ng to
the conf i gurati on in F12 and F11 , stock i te m master fi e l ds w il l ge t adde d and re move d.
Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)
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A brief description of each additional field in Stock Item Creation screen is given below.
Part No.
This Part number field gets enabled only after enabling Use Part Number for stock items in Inventory
Master Configuration. This field is used to enter the Vendors catalogue number. You can also optionally print
it in reports/invoices.
Description
The Description field gets enabled only after enabling Use Description for Stock Items in Inventory
Master Configuration. This field is used to enter the description of the Stock Item as it is required to be
printed in Quotations, Delivery Challan/Invoice.
Remarks
This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory Master
configuration. This field is used to enter Remarks for the Stock Item (for internal use only). Any additional
details about the Item can be entered here.
Set/Modify Default Ledgers for Invoicing?
This option gets enabled only after enabling Specify Default Ledger Allocation for Invoicing in
Inventory Master Configuration. Once you enable this option, a screen will be displayed for selecting the
default ledger allocation for sales and purchase for the stock item.
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Note: Thi s opti on i s use ful onl y i n case of Invoi ce e ntry through Vouche r Class.
Category
This Category field gets enabled only after enabling Maintain Stock Categories in Inventory Master
Features. This field will show the List of Categories. Here you can select the Stock Category under which
the stock Item belongs. By default, Not Applicable is displayed in this field.
Note: You can cre ate a new stock cate gory by pre ssing ALT+C at thi s fie l d.
Alternate Units
Alternative Units are individual units similar to simple units, which can be used instead of another simple
unit during Invoicing / voucher entry and are also useful in displaying the stock reports alternatively in
another simple unit. This is particularly useful when you need to handle different units at different times.
This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in
Inventory Master Configuration.
Example:
Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of wheat flour can be
measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple units, which can be alternatively
used.
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Maintain in Batches?
This option gets enabled only after enabling Maintain Batch wise Details in Inventory Master Features. If
you want to maintain the batch information of Stock Items, set the option Maintain in Batches to Yes.
Track Date of Mfg?
This option is enabled only when Maintain in Batches? is set to Yes. If you want to specify the
manufacturing date for the item, set Track Date of Mfg. to Yes.
Use Expiry Dates
This option gets enabled only after enabling Set Expiry Dates for Batches under Maintain Batch Wise
Details option in Inventory Features. If you want to specify the expiry date of the item, set Use expiry
dates to Yes. This option is useful for stock items like medicines, Food items, etc.
Set Component BOM
This option gets enabled only after enabling Allow Component List Details (Bills of Material) in
Inventory Master Configuration. Refer to Bills of Material for more details.
Set Standard Rates
This option gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory Master
Configuration. This option helps you specify standard purchase rate and standard sales rates for the item.
The standards are effective from the specified dates and they continue to be used at these rates until the
next date, where the standard rate changes.
Note: Standard Rate s can al so be use d for val uati on of cl osi ng stock.
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Behaviour Group
Once you enable Allow Advanced Entries in Masters Behaviour Group option will be enabled.
Options available under Behaviour Group are:
Costing Method
This field will display the List of Costing Method for valuating the Stock Item.
Depending upon the stock item, you can select the costing method for valuating the Stock item.
A Brief description about each Costing Method:
At Zero Cost:
Cost of an item is considered as zero. For example, for defective items that have no commercial value.
Avg.Cost:
Periodic system:
This is also known as Weighted Average Cost. The weighted average cost for the whole year is computed as
below:
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Monthly system:
In monthly average cost, weighted average cost is determined on a monthly basis instead of annual.
FIFO (First-in, First-Out):
Periodic System
Under FIFO Periodic System, it is assumed that items purchased first are sold first under the current
financial year (i.e., first lot from the opening stock of current year).
Perpetual System
Under FIFO Perpetual system, it is assumed that items purchased first are sold first across the financial year
(i.e., first lot may be from previous year entry).
So cost of goods sold is based upon the cost of material received first in the period, while the cost of
inventory is based upon the cost of material received last in the period.
Last Purchase cost
Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based upon the Last
purchase rate.
LIFO (Last-in, First-Out)
Periodic system
Under LIFO, it is assumed that items purchased last are sold first under the current financial year (i.e., first
lot from the opening stock of current year)
Perpetual System
Under LIFO Perpetual system, it is assumed that items purchased last are sold first across the financial year
(i.e., first lot may be from previous year entry).
So cost of goods sold is based upon the cost of materials received last in the period, while the cost of
inventory is based upon the cost of material received first in the period.
Standard Cost
Standard Cost is Standard Rates specified in the Inventory master.
Cost of goods sold and Cost of inventory is based upon the Standard Rates.
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Market Valuation Method
By using Market Valuation Method, you can determine the realisable worth of an Item.
Unrealised Profit of an Item = Closing value as per Costing Method � Closing value as per Market valuation
method.
Select the appropriate method applicable for the Item from the Valuation Methods List.
At Zero Price
Realisable price of an item is considered as zero.
Example: For defective items that have no realisable value in the market.
Average Price
Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for the financial
year.
Last Sale Price
Item is valued at Last Sale Price.
Standard Price
User specified rate applicable for the current date specified in Item master under Standard Rate is taken
as the realizable rate.
Ignore Diff. due to Physical Counting?
In Tally.ERP 9, you can record the physical stock as counted, using a physical stock voucher. If you wish to
ignore the difference and continue with the stock as per books, set this option to Yes.
Ignore Negative Balances?
If you set this to Yes, Tally.ERP 9 ignores the item in the stock reports, in case it has a negative balance.
Treat all Sales as New Manufacture?
If you set this to Yes, whenever a sales entry is made, Tally.ERP 9 automatically updates the quantity and
value in inward by treating the same entry as a New manufacture or purchase.
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Treat all Purchases as Consumed?
If you set this to Yes, then, whenever a purchase entry is made, Tally.ERP 9 automatically updates the
quantity and value in outward by treating the same entry as consumed.
Treat all Rejections inward as Scrap?
If you set this to Yes, then, whenever a rejection inward entry has been made [without tracking number],
Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this case, you need not
pass the credit note for reducing the value against rejection inward.
This is used for defective items returned by the customer.
Allow use of expired Batches?
This option will get enabled once you enable the Use expiry dates under Maintain in Batches option.
If you set this to Yes, during selection of batches in voucher entry, expiry batches also get included in
the List of Active Batch.
Displaying a Stock Item
You can display the existing Single Stock Item master and Multiple Stock Item masters, since it is only
display you are not allowed to alter any information in display mode.
To display a Single Stock Item,
Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item)
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Select the Stock Item you want to display from the List of Items. The Stock Item Display screen is
displayed as shown.
Displaying a Multiple Stock Item
Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item)
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Select a Stock Group or All Items from List of Groups to display the Stock Item under the selected group
or All Items.
The Multi Stock Item display screen is displayed as shown.
Altering a Stock Item
This option allows you to view the existing single Stock Item master and Multiple Stock Item masters in edit
mode, here you are allowed to change the various information.
In the Alteration mode, you can change the item master settings.
If a transaction is entered for that item, it is not possible to alter the units and delete the stock item.
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To Alter a Single Stock Item,
Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Single Stock Item)
Select the Stock Item you want to alter from the List of Items. The Stock Item Alteration screen is
displayed as shown.
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Altering a Multiple Stock Item
Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Multiple Stock Item)
Select a Stock Group or All Items from List of Groups to alter the Stock Item under the selected group or
All Items.
The Multi Stock Item Alteration screen is displayed as shown.
Note: In the Mul ti Stock Item Al terati on screen , you can cre ate an Ite m by spe ci fying
i te m name afte r the l ast i te m, but you cannot de le te an i te m.
Units of Measurement
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Stock Items are purchased or sold on the basis of quantity. The quantity is measured by Units. Hence, it is
necessary to create Units of Measure. You can have simple units such as numbers, meters, kilograms, and
pieces or compound units like box of 10 pieces [1box =10 pieces]
Go to Gateway of Tally > Inventory Info. > Units of Measure
Creating Simple Units of Measure
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In
such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound.
Examples of simple units are: nos., metres, kilograms, pieces etc.
To create Simple Units of Measure,
Go to Gateway of Tally > Inventory Info > Units of Measure > Create
The Unit Creation screen is displayed as shown.
A brief explanation of each field in the Unit Creation screen is given below:
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Type
This field will show the Type of Units.


Simple
Compound.
Simple units are nos, pcs, etc. Compound unit is a combination of two simple units.
By default Tally.ERP 9 will show the Simple unit for creating the unit of measure.
You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the
previous field].
Symbol
Define the symbol of the unit, e.g., Nos. This symbol is used in all displays and printouts.
Formal Name
Specify the formal name of the symbol, e.g. Numbers. This formal name is useful during the 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.
Number of decimal places
In this field you can specify the decimal places for the Units from 0 to 4. This field is useful for Units
measured in fractions.
Example:
Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal
places required is 3.
Displaying a Units of Measure
You can display the existing Units of Measure, since it is only display Tally.ERP 9 does not allow you to alter
any information in display mode.
To display Units of Measure,
Go to Gateway of Tally > Inventory Info. > Units of Measure > Display
Select the Unit of Measure you would like to view from the Units list. You can select a compound unit or a
simple unit from the list.
The Unit Display screen is displayed as shown.
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In di spl ay mode i t i s not possi ble to make any change s.
Altering a Units of Measure
To alter Units of Measure
Go to Gateway of Tally > Inventory Info. > Units of Measure > Alter
Select the Unit of Measure you want to alter from the Units list. The Unit Alteration screen is displayed as
shown.
Make the necessary changes and accept Yes to save or Press CTRL+A.
Note: In Al te rati on mode , you cannot al ter the Numbe r of D e ci mal pl aces fi el d.
You can delete a Unit of Measure from this screen by pressing Alt + D. However, you cannot delete a Unit of
Measure that is part of a compound measure. You must delete the compound measure first.
Creating Compound Units of Measure
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A Compound Unit is a relation between two Simple Units. Hence, before you create a Compound Unit,
ensure that you have already created two Simple Units.
Example:
To Create Compound unit � Doz (Dozen) of 12 Nos (Numbers), you have to create two simple units, Doz
(Dozen) and Nos (Numbers) and set the conversion factor as 12.
Go to Gateway of Tally > Inventory Info > Units of Measure > Create
The Unit Creation screen is displayed as shown. Now Click on Type field or Press SHIFT + TAB or
Press Backspace Key.
Select Compound from the Types of Units and press Enter. The Conversion field will be displayed for
creating Compound unit.
Field Information:
First unit: Select the First unit from the Units List. In the above example, Dozen will be the First Unit.
Conversion: Specify the conversion Factor. In the above example, Conversion factor will be 12.
Second Unit: Specify the Second Unit from the Units List. In the above example, Number will be the
Second Unit. This unit is also called Tail Unit.
Use CTRL + A or Accept the Screen for Saving of Compound Unit Creation.
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Bill of Materials
A Bill of Materials is a list of constituent items along with quantity details that can be allotted for the
manufacture of a certain product, by-product or likewise. This facilitates immediate reduction in stock of the
item automatically. This process of listing the items that make up another item is made possible in Tally by
enabling the Bill of Materials Facility.
Bill of Material (BoM) is created only for those items that are being assembled in-house. Therefore, you
need to specify a BoM at the time of creating a Stock Item or while altering the stock item. For trading
items, you do not need a BoM.
Creating Bill of Materials for a Stock Item
Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure.
To setup Bill of Materials
Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info. > set Allow Component
List Details (Bill of Materials) to Yes
OR
Go to Gateway of Tally > Inventory Info > Stock Items > Create > Press F12:Configure (Stock
Item Configuration) and set Allow Component List Details (Bill of Materials) to Yes.
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For a Stock Item, you can create

A Single BOM

Multiple BOM

Single/Multiple BOM with Type of Item
Creating Single Bill of Material for a Stock Item
Single BOM can be created for a stock item where you use standard set of inputs to manufacture
finished goods.
Let us create a new Stock Item Television and specify BoM.
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
In Stock Item Creation screen

Enter the Stock Item Name, select the appropriate Stock Group and specify the
appropriate Unit of Measurement in Unit field

Set Component List: To create the component list required to manufacture the Finished goods
enable this option to Yes
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Note: The Set C om ponents Li st opti on wi ll not di spl aye d i n Stock Ite m maste r on e nabl ing
the confi gurati on opti on All ow Component l i st deta i l s (Bil l of Materi al ) ,option w il l
di spl ay in i te m maste r only on e nte ring/ spe ci fyi ng the unit of me asure i n the Uni ts fi el d.

Press Enter to view Stock Item Multi Components (M BOM) screen

In Stock Item Multi Components (M BOM) screen
o

Under Name of BOM specify component list Name - Standard and press enter to view
Item Components (BOM) screen
Stock
In Stock Item Components (BOM) screen
o
BOM Name: By default the BOM Name specified in Stock Item Multi Components (M
BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name
field.
o
Components of: In this field application displays the Name of the Stock Item for which the
components are defined.
o
Unit of manufacture: Specify the appropriate number of finished product that will be
manufactured by using the components identified in the component list.
o
Item: In this field identify the raw materials which are required to manufacture the finished
goods
o
Godown: If there are multiple Godowns or Locations, specify the storage location of the items
from where the items will be used for manufacture.
Note: The godow n opti on w il l be di spl aye d onl y w hen Mai ntai n Multi pl e Godown fe ature i s
e nable d i n F11: Features (Inventory Features)
o
Quantity: In this field mention the quantity of Raw Material required to manufacture the finished
goods.
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Observe to create 1 Television we require 5 different inputs. The Quantity of inputs consumed to
manufacturer finished goods is 1 each of 5 different inputs.

Specify other required details in the stock item master and accept the screen.
Creating Manufacturing Journal for a Stock Item with Single Bill of Materials
All the manufacturing transactions can be accounted through a Stock Journal.

To record manufacture of finished goods in Stock Journal - Alter the Voucher
Type by setting the option Use as a Manufacturing Journal to Yes . Or

Create a Manufacturing Journal under Stock Journal by setting the option Use as a
Manufacturing Journal to Yes
Note: Bi ll of Materi al shoul d be cre ate d be fore accounti ng the manufacture of an i te m.
Go to Gateway of Tally > Inventory Vouchers
1.
Select the button F7: Stk. Jrnl or press Alt + F7.
If you have created a new voucher type Manufacturing Journal, a pop-up menu will be displayed with the
options default Stock Journal and Manufacturing Journal.
Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen
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
Name of Product: Select the product which needs to be manufactured from the List of Items.

BoM Name: In this field the BoM created for the stock item will be displayed automatically
with one more option Not Applicable.
Note: The l i st of Raw mate ri al s re qui re d for the manufacture of fi ni she d goods w il l be
di spl aye d i n C om ponents (C onsumpti on) si de based on the BO M de faul te d.

Godown: Select the godown where you would like to place the produced goods.
Note: Godown opti on wil l be di spl aye d onl y w he n Mai ntai n Mul ti pl e Godown fe ature i s
e nable d i n F11: Features (Inve ntory Fe ature s)

Quantity: In this field specify the quantity of finished goods manufactured.

Components (Consumption): In this section the components required to manufacture the
finished goods will be displayed automatically based on the components defined in the BoM.
Quantity of Raw material will be defaulted based on the quantity requirement defined in
the BOM multiplied by the Quantity of finished goods manufactured.
The completed Manufacturing Journal is displayed as shown
Creating Multiple Bill Of Material for a Stock Item
Multiple BOM can be created for a stock items where you use varying set of components to manufacture a
specific finished goods based on the availability of goods or customer requirements.
The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release
3.0. Where you can create multiple BOM with different component list for a stock item & appropriate
BOM can be selected in the manufacturing Voucher.
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This feature will be useful where you are using different components to manufacture the same stock item
based on the customer requirement
Example: Customer A wants Television to be manufactured with specific brand of Picture Tube.
Where as other customers has not specified any such specifications. In this scenario ABC company needs
2 BOM, one forCustomer A as per his component specification & other may be a standard BOM for all other
customers.
To create multiple Bill of Material
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
In Stock Item Creation screen

Enter the Stock Item Name, select the appropriate stock group and specify the
appropriate unit of measurement in Unit field

Set Component List: To create the component list required to manufacture the Finished goods
enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM)
screen

In Stock Item Multi Components (M BOM) screen
o
Under Name of BOM specify component list Name - Customer A and press enter to view Stock
Item Components (BOM) screen
If BOM is specifically created for a specific customer/sale you can enter the customer or sale name
in Name of BOM field to identify the BOM while recording manufacturing transaction.

In Stock Item Components (BOM) screen
o
BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM)
screen will be defaulted and application will not allow to move the cursor to BOM Name field.
o
Components of: In this field application displays the Name of the Stock Item for which the
components are defined.
o
Unit of Manufacture: Specify the appropriate number of finished product that will be
manufactured by using the components identified in the component list.
o
Item: In this field identify the raw materials which are required to manufacture the finished
goods
o
Godown: If there are multiple Godowns or Locations, specify the storage location of the items
from where the items will be used for manufacture.
o
Quantity: In this field mention the quantity of Raw Material required to manufacture the finished
goods.
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
Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item
Multi Component screen

In Stock Item Multi Component screen enter the second Bill of Material nameStandard in Name of BOM field

In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item,
Godown and Quantity details as shown
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Note: In the a bove sce nari o for Stock i te m - Tel evi si on w e have create d 2 BOM . Si mil arl y
you can cre ate m ul ti pl e BO M wi th di ffe re nt component l i st for the stock i te ms.

Specify other required details in the stock item master and accept the screen.
Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials
In Manufacturing Journal voucher

Name of Product: Select the product which needs to be manufactured from the List of Items.

BoM Name: In this field Tally.ERP 9 displays the BOM List for selection of BOM, as multiple
BOM are created for the finished goods.
Note: The l i st of Raw mate ri al s re qui re d for the manufacture of fi ni she d goods w il l be
di spl aye d i n Compone nts (Consumpti on) si de base d on the BO M de faul te d.

Godown: Select the godown where you would like to place the produced goods.
Note: Godown opti on wil l be di spl aye d onl y w he n Mai ntai n Mul ti pl e Godown fe ature i s
e nable d i n F11: Features (Inve ntory Fe ature s)

Quantity: In this field specify the quantity of finished goods manufactured.

Components (Consumption): In this section the components required to manufacture the
finished goods will be displayed automatically based on the components defined in the BoM.
Quantity of Raw material will be defaulted based on the quantity requirement defined in
the BOM multiplied by the Quantity of finished goods manufactured.
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Creating Single/Multiple Bill Of Material with Type of Item
In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap
may be produced.
In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which
are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.
Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as
consumption, By-Product/Co-Product/ Scrap.
Let us take the case of manufacture of Sugar and create the BOM for the stock Item
To create Bill of Material with Type of Item
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
In Stock Item Creation screen
1. Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of
Measurement in Unit field
2. Set Component List: To create the component list required to manufacture the Finished goods enable
this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen
3. In Stock Item Multi Components (M BOM) screen

Under Name of BOM specify component list Name as - Standard
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4. In Stock Item Components (BOM) screen,
Set up:

In F12: Configuration, enable the option Define Type of Component for BOM to Yes
On enabling the configuration option Define Type of Component for BOM in Stock Item Components
(BOM) screen a new column Type of Item will be displayed.

BOM Name: By default the BOM Name specified in Stock Item Multi Components (M
BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name
field.

Components of: In this field application displays the Name of the Stock Item for which the
components are defined.

Unit of Manufacture: Specify the appropriate number of finished product that will be
manufactured by using the components identified in the component list.

Item: In this field identify the raw materials which are required to manufacture the finished
goods

Godown: If there are multiple Godowns or Locations, specify the storage location of the items
from where the items will be used for manufacture.

Type of Item: In this field select the appropriate type for the item selected.
o
By-Product: Select this classification for the stock items which are produced as By-Product of
finished goods
o
Component: Select this classification for the Raw materials /inputs which are used or consumed
for the production of finished goods.
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o
Co-Product: Select this classification for the stock items which are produced as Co-product of
finished goods
o
Scrap: Select this classification for the stock item produced as scrap in the process of
manufacture of finished goods.
Quantity: In this field mention the quantity of Raw Material required to manufacture the
finished goods or the Co- Products/ By-Products /scrap manufactured.
Note: Cursor wi ll not move to Rate (%) col umn w hen the Component Type sel e cte d
i s C onsum pti on .

Rate (%): In this field you can specify the percentage of cost of components to be
considered to determine the cost of production of Co-products/By-Products/Scrap.
Note: If the C om ponent Type sel e cte d i s C o-product/By -Product or Scrap , cursor w ill
move to Rate ( %) col umn to de fi ne the pe rcentage of cost of producti on of Co - pr oduct/ ByProduct or Scrap.
The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown
Observe
to
manufacture
Sugar, Sugar
Cane
&
Lime are
(Component). Bagasse & Molasses are identified as By-Products.
identified
as Raw
materials
Note: Whe n the Manuf acturi ng Journal i s re corde d to account the manufacture
of Sugar usi ng the above cre ate d BO M the stock i tems i de nti fie d as Component w ill be
di spl aye d unde r C om ponents (Consumpti on) se cti on. The stock i tems i denti fie d
as C oProduct/ByProduct or Scrap w i ll be di spl aye d unde r C o-Products/By Products/Scrap se cti on
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
Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item
Multi Component screen. If required you can create the second BOM for the stock Item

Specify other required details in the stock item master and accept the screen.
Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with
Component Type
In Manufacturing Journal voucher

Name of Product: Select the product which needs to be manufactured from the List of Items.

BOM Name: In this field the BoM created for the stock item will be displayed automatically
with one more option Not Applicable.
For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple
BOM are created application displays the BOM list for selection
Note: Base d on the BOM se le cte d
* The li st of Raw m ateri al s re qui re d to manufacture fi ni she d goods w i ll be di spl aye d
i n C om ponents (C onsumpti on) si de
*The By-products & scrap produce d duri ng the manufacture w il l be di splaye d unde r C oProducts/By -Products/S crap si de
The de faul t of Raw Mate ri al s & C o-Products/By -Pro ducts/Scrap w i ll be base d on
the C om ponent Type de fine d i n BO M.

Godown: Select the godown where you would like to place the produced goods.
Note: Godown opti on wil l be di spl aye d onl y w he n Mai ntai n Mul ti pl e Godown fe ature i s
e nable d i n F11: Features (Inve ntory Fe ature s)

Quantity: In this field specify the quantity of finished goods manufactured.

Components (Consumption): In this section the components required to manufacture the
finished goods will be displayed automatically based on the components defined in BoM.
Quantity of Raw material will be defaulted based on the quantity requirement defined in
the BOM multiplied by the Quantity of finished goods manufactured.

Co-Products / By-Products / Scrap: In this section the co-products/ by-products/scrap
produced during manufacture of finished goods will be displayed automatically based on the
components defined & Component Type defined in BOM
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Quantity of Co-Products / By-Products / Scrap will be defaulted based on
the quantity defined in the BOM multiplied by the Quantity of finished goods manufactured.
o

% of Cost: In this field, the percentage specified in Rate (%) column for the By-products/CoProducts or scrap while creating BOM will be defaulted. The % of Cost will be considered to
determine the cost of production of Co-products/By-Products/Scrap.
For field description refer Manufacturing Journals.
Copy Components of BOM
In Bill of Material creation the capability has been enhanced to copy the components of one BOM to
another BOM.
Example: For stock item Television, ABC company has 2 BOM - Customer A and Standard. Now company
wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific
brand of Picture Tube - Picture Tube LG. Except Picture Tube, the components used to
manufacture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the
components of standard BOM to Customer B.
To create the BOM
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
In Stock Item Alteration

Alter Components (BOM): To create the component list required to manufacture the Finished
goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM)
screen

In Stock Item Multi Components (M BOM) screen
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o
The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow
Key)
o
Enter the BOM Name - Customer B

Press Enter to view Stock Item Components (BOM) screen

In Stock Item Components (BOM) screen

To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to
view Copy BoM Details screen

In Copy BoM Details screen
o

Copy Component for BOM: In this field select the BOM from which the components to be
copied. Here ABC company is copying the components from Standard.
Press Enter. The components of Standard BoM will get copied to BOM - Customer B.
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
Unit of Manufacture: Specify the appropriate number of finished product that will be
manufactured by using the components identified in the component list.

Item: In this field select the Picture Tube - LG and Retain other items/components.
Note: C opy BO M opti on copi e s onl y the compone nts of one BO M to anothe r. Use rs have to
de fi ne the Uni t of Manufacture and Q uantity of i nputs ( compone nts) .
Locations / Godowns
Locations/Godowns are places where Stock Items are stored. You can monitor the location-wise
movement of stock by creating multiple Godowns.
Example:
Suppose you have three Godowns, where you store the Goods. In Chennai, you have two Godowns and in
Bangalore, one Godown.
You can create Godowns as shown below:
Godown
Under
Godown A
Chennai
Godown B
Chennai
Godown C
Bangalore
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First you have to Create Chennai and Bangalore locations and then you have to create Godowns under the
respective location.
Tally.ERP 9 has a default Godown named Main Location. You can alter Tally's default godown and create a
new one. Tally.ERP 9 permits the creation of any number of godowns, under groups and subgroups to match
the structure you need.
You can create Locations/Godowns only if Maintain Multiple Godowns is enabled in F11: Features >
F2: Inventory Features.
Go to Gateway of Tally > Inventory Info. > Godowns
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Note: The te rm Locati ons i s di splaye d i n the Inventory Inf o. me nu, i f Internati onal is
se le cte d unde r Use Accounti ng Termi nol ogy of i n General Confi gurati on (Gate way of
Tall y > F12: Confi gure ) scre e n. If Indi a/SAARC is sel e cte d, the te rm Godowns i s
di spl aye d.
Creating a Location/Godown
Godowns is a place where stock items are stored. You can specify where the stock items are kept. You can obtain
stock reports for each Godown and account for the movement of stock between locations/Godowns.
You can create Locations/Godowns in Single mode and Multiple mode
Creating a Single Location/Godown
To create a Location/Godown,
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Create (under Single Godown)
The Location/Godown Creation screen is displayed as shown:
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A brief explanation of each field in the Location/Godown Creation screen is given below:
Name
Specify the name of the Location/Godown.
Alias
Enter an alias name for the Location/Godown name, if required.
Under
Specify the Location/Godown under which the Location/Godown is to be categorised. Use Alt + C to create
the parent Location/Godown if it is not in the list. Select Primary, if it is not a sub Location/Godown of any
Location/Godown.
Use for
This section is provided in Tally.ERP 9 Release 3.0 where users can create the godowns to store:
The stock of the company lying with third party like Consignment Agent, Bonded Ware house, Job worker,
etc.
Or
Third Party stock lying with the company in case company has received the stock for Job Work or acting as
consignment agent or for any other reason.

Our Stock with Third Party: Set this option to Yes if the godown is used to account the
company's goods lying with the third party.

Third Party Stock with us : Set this option to Yes if the godown created is used to account
the goods received from third party and the stock of third party should not affect the company
stock value.
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Creating a Single Location/Godown � Advance Mode:
Advance Mode indicates enabling certain options in Inventory master configuration screen in order to add or
remove field which require in Godown Master.
In the Godown Creation screen, press F12: Configure (Godown Configuration) screen is displayed as
shown.
1.
Use Addresses for Godowns: Setting this option to Yes enables the Address field in Godown
Master
Accts / Inventory Info. Configuration
Go to Gateway of Tally > F12: Configure > Accts /Inventory Info.
1.
Allow Advanced Entries in Masters: Setting this option to Yes enables the Allow Storage
of Materials option in Godown Master.
The Location/Godown Creation in Advance Mode screen is displayed as shown.
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A brief description of each additional field in Godown Creation screen is given below.
Address
This field is a Multi-Line Field. You can enter the Address for Godown.
Allow Storage of Materials
This option is used for deciding whether storage of material is allowed in this Godown or not.
The Godown for which the Allow Storage of Materials is selected as No, will not appear in the Godowns list,
during Voucher entry.
Example:
Godown A is under Chennai Location. Here, Chennai is a Location and Godown A is a place where material is
stored.
For Chennai, Allow Storage of Materials is set to No, since this will not store the material. During Entry,
Chennai will not get listed in the List of Godown.
For Godown A, Allow Storage of Material is set to Yes, since this will store the material. During Entry,
Godown A will get listed in the List of Godown.
Creating Multiple Locations/Godowns
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Create (under Multiple
Godowns)
The Multi Godown Creation screen is displayed as shown.
Under Godown
Select the parent group under which you want the new Godowns to be created. If you select any specific
Godown other than All Items, then all the new Godowns will be created under that Godown. Selecting All
Items gives you the flexibility of specifying the parent of each new Godown created.
Name
Specify the name of the Godown.
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Under
If you select All Items in the field Under Godown, you must specify a parent Godown here. If you select a
specific Godown in the field Under Godown, that Godown will be displayed automatically in this column.
Displaying & Altering a Stock Location/Godown
You can display/alter the Godowns in single and multiple modes. It is similar to Displaying/Altering Stock
Groups in single and multiple modes. Refer Displaying/Altering Stock Groups for more details.
To display a single stock Location/Godown
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Display (under Single
Location/Godown)
To display multiple stock Locations/Godowns at a time
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Display (under Multiple
Locations/Godowns)
To alter a single stock Location/Godown
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Alter (under Single
Location/Godown)
To alter multiple stock Locations/Godowns at a time
Go to Gateway of Tally > Inventory Info. > Locations/Godowns > Alter (under Multiple
Locations/Godowns)
You can delete a Godown/ location via Single Godown/Location Alter by pressing [Alt]+[D]. However, you
cannot delete a Godown/location with sub-locations. The lower levels must be deleted first.
Batches & Expiry Dates
Batch details are used to identify the movement of the inventory in batches or lots. Although this is a
requirement primarily of the pharmaceutical industry, the same can be used by other industries who
maintain or manufacture perishable goods. Many organizations also purchase in lots in order to monitor the
lots purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot.
Batches/Lots are also often used to monitor the date of manufacture, date of receipt or the expiry
date.
Activating Batch-Wise Details
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To Activate Batch-Wise Details in Tally.ERP 9,
1.
Enabling Maintain Batch-wise details and Set Expiry Date for Batches in F11: Inventory
Features.
2.
Enable the following options related to batches in the Stock Item Master to Yes.
a. Maintain in Batches
b. Track date of manufacture
c. Use Expiry Dates
Manufacturing date & Expiry date for Batches
This feature is useful for businesses that deal in goods that have expiry dates like medicines, food and other
perishables. During voucher entry, the date of the voucher is taken by default as the date of manufacture of
the product. This can be changed but not to a date later than the voucher date. Expiry date cannot be a
date prior to the voucher date.
Note: The manufacturi ng date cannot be l ate r than the vouche r date . The e xpi ry date
cannot be e arli e r than the manufacturi ng date .
Entering Batch-wise details for purchase voucher
Example:
Voucher Date: 1-10-2008. Purchase 250 nos. @ Rs.10 each. Batch no. SP-1062 having the manufacturing
date 01-09-2005 and Expiry date 01-10-2008.
In the manufacturing date field, by default it takes the voucher date in the format of month and year. In
Expiry date filed, by default it set as Blank. You can specify the expiry date.
Selecting Batch-wise details for sales voucher:
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Example:
Voucher Date:1-10-2008. Sales 100 nos. @ Rs.15 each against Batch no. SP-1062.
In List of Active Batches, SP-1062 batch is displayed for selection,since the Expiry Date is not earlier to the
Sale Voucher Date. If Sales voucher date is on 02-10-2008, Expiry Date is earlier than the Sale voucher
date and it will not be displayed in the List of Active Batches.
This is because the option Honor Expiry Dates usage for Batches is set to YES in F12 Configure
(Voucher Entry Configuration).
If you want to list the expiry batches during sales entry, set NO to Honor expiry Dates usage for
batches in F12 Configure.
Inventory Voucher Types
There are 18 different pre-defined Voucher types in Tally.ERP 9. Voucher type pertains to both Accounting
and Inventory. These are used for recording various transactions according to the user needs.
Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined
voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales
transactions e.g. Credit Sales, Cash Sales, etc.
If a voucher type is created, you can:

Have the different Voucher numbering methods.

Give own prefix and suffix details for the voucher numbering.

Use the Effective Dates for the vouchers.

By default make some vouchers optional if required.

Decide to have the Common Narration or Narration for each entry

Automate the printing immediately after saving the vouchers.

Get separate reports for each type of voucher.
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Creating an Inventory Voucher Type
Tally.ERP 9 is pre-programmed with a variety of inventory vouchers, each designed to perform a different job. You
can alter these vouchers to suit your company, and also create new ones.
Pre- defined voucher types:
There are 18 pre-defined Voucher types in Tally.ERP 9. Voucher type pertains to both Accounting and
Inventory. These are used for recording various transactions according to the user needs.
Examples include Cash Payment Vouchers and Bank Payment vouchers where the relevant predefined
voucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales
transactions e.g. Credit Sales, Cash Sales, etc.
To create a voucher type,
Go to Gateway of Tally > Inventory info > Voucher types > Create
Display/Alter a predefined voucher type
Selecting these options brings up a List of Voucher Types, from which you can select the one you want to
view or work on. Apart from the heading, the Voucher Type Display/Alter screens are identical to the
Creation screen.
To alter a voucher type,
From Gateway of Tally > Inventory info > Voucher types > Alter
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Even if you do not need extra voucher types, you would normally alter the predefined voucher types to
customize them according to your needs, e.g., to control their numbers.
Creating a Manufacturing Journal Voucher Type
In Manufacturing/Assembling organisations, there are number of components that go into the manufacturing/
assembling of finished Goods. Once, the Bill of materials is created, you can use Manufacturing Journal and specify
the quantity of finished goods that are to be manufactured.
To create a Manufacturing Journal Voucher Type,
Go to Gateway of Tally > Inventory Info > Voucher Types > Create
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Name
Enter the name of the Voucher for ex: Manufacturing Journal
Type of Voucher
Select Stock Journal from the List of Voucher Types
Method of Voucher Numbering
You can select the method of voucher numbering as required.
Use Advance Configuration
Enable the options as required.
For more details refer Creating a Voucher Type with Advanced Configuration
Use a Manufacturing Journal
Set this option to Yes. Once this option is set to Yes, you will be able to pass the manufacturing Journal.
You can also alter the existing Stock Journal Voucher type and set Use as a Manufacturing
Journal to Yes.
Go to Gateway of Tally > Inventory Info > Voucher type > Alter > Stock Journal
Note : O nce the Stock J ournal is se t for Use as a Stock Journal . al l stock journal vouche rs
w il l be tre ate d as Manuf acturi ng journal s.
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Inventory Voucher Class
Inventory Voucher Classes are used to automate Inventory Allocations in transactions. It is a table for
predefining the entries to make Invoice entry a simple task. This is particularly useful in Stock Journals
where the transfer of materials from one godown to another and vice versa has to be updated without
updating the books of Accounts.
Creating Stock Journal Voucher Class
Stock Journal classes allow you to handle transfers from one location (Godown) to another, for companies
having Multi-Location Inventory and at least two location/Godowns. Once the class is selected, you will need
to specify the Destination and provide the list of items to be transferred. Through this class all items/batches
thus selected will be exactly mirrored to the destination, including Batch Number, Rate and Value.
The user can either alter the existing Stock Journal or create a new voucher type based on the
requirements.
Go to Accounts Info > Voucher Types > alter > Stock Journal
Enter a name in the field Name of Class. (Eg: Transfer)
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Class: The Transfer screen is displayed. To create a class for inter-godown transfer, set the option Use
Class for Inter-Godown Transfer to Yes.
Voucher Entry in Tally.ERP 9
A Voucher is a document that contains details of a financial transaction and is required for recording the
same into the books of accounts. For every transaction, you can use the appropriate Tally Voucher to enter
the details into the ledgers and update the financial position of the company.
There are basically two types of Voucher Entries:

Accounting Vouchers

Inventory Vouchers
The Voucher Entry Menus options are available under Transactions in the Gateway of Tally.
The Payroll and Order Vouchers are available as separate options which can be enabled based on the
requirements.
The Payroll Vouchers can be enabled from F1: Accounting Features, whereas, the Order Vouchers can
be activated from F2: Inventory Features.
Note: If the company i s m ai ntai ne d w ith Accounts Onl y Company , Inventory
Vouchers opti on w il l not be di spl aye d unde r Transacti ons.
Accounting Vouchers
Accounting Vouchers are used to record all accounts related transactions in Tally.ERP 9. You can
selectively set the configuration for entry to allow only those features, which you require while entering
vouchers.
Go to Gateway of Tally > F12: Configure > Voucher Entry
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For more information refer F12: Configurations for voucher entry.
Predefined Vouchers in Tally.ERP 9
Tally comprises of the following predefined Vouchers, to suit different business requirements for recording
various transactions. Tally also allows you to create user-defined Vouchers (Voucher Types) as per your
requirements.

Contra Voucher

Payment Voucher

Receipt Voucher

Journal voucher

Sales Voucher / Invoice

Debit Note Voucher

Credit Note Voucher

Purchase Voucher / Invoice
Voucher Entry
The Voucher Entry screen is divided into three parts:

The Main Voucher Entry
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
Button Bar

Calculator
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Voucher Entry Screen components
Main Voucher Entry Area
The Main Voucher Entry Area is where you enter all your transactions. This area has fields for Date, Ledger
Name and Amount as well as additional pop-up screens that are dependent on your voucher configuration
and the nature of transaction you make.
Button Bar
The Button Bar area displays buttons that provide quick links to various functions and features of Tally.ERP
9. Buttons that are relevant to the current task are enabled and the other buttons are disabled.
Calculator Area
The Calculator area provides a working space where you can enter any number of mathematical formulae
for complex calculations.
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Switching between Screen Areas
The Main Voucher Entry Area is the active area by default on the Voucher Creation screen.
Press Ctrl+N to navigate to the Calculator Area and press Ctrl+M to toggle back to Main Voucher Entry
Area. A green bar highlights the active area of the screen.
Note: Pre ss Al t+ C to use cal cul ator w he n at amount fi e l d.
Special Keys for Voucher Narration Field
ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Checking the accuracy of the vouchers
To check the accuracy of the vouchers that you have entered:
Go to Gateway of Tally > Display > Day Book
1.
Select F2: Period from Button Bar and enter the period for which you want to view Vouchers.
Note: It de faul ts to the curre nt date onl y but you may di spl ay all the transacti ons for a
parti cul ar pe ri od.
Select F1: Detailed
You can check the vouchers for correctness. To correct a mistake, position the cursor on the item where you
have found the error and press Enter. Tally.ERP 9 displays the voucher details for alteration. The alteration
facility is subject to security and access rights. All alterations are available for audit.
Contra Entry
As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Cash
A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction indicating transfer of funds from:

Cash account to Cash account

Cash account to Bank account

Bank account to Cash account

Bank account to Bank account
To view the Contra Voucher Entry Screen:
Go to Gateway of Tally > Accounting Vouchers

Select F4: Contra from the Button Bar or press F4
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Creating Contra Entry in Single Entry Mode
The Contra Voucher can be passed using Single entry mode or Double Entry mode. To toggle between
Single Entry and Double Entry mode, we need to change the setting Use Single Entry mode for
Pymt/Rcpt/Contrato Yes/No in F12 configuration.
Refer to F12: Configuration in Tally.ERP 9 for more details.
To view Contra Voucher creation screen in Single Entry mode:
Go to Gateway of Tally > Accounting Vouchers > Select F4: Contra
For example, to transfer funds from Cash Account to Bank Account:
1.
Debit the Bank Account
2.
Credit the Cash Account
The entry will be displayed as shown.
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Advantages of Single Entry Mode:

Faster data entry.

When there is a Single Debit and Multiple Credits in the entry.
Creating Contra Entry in Double Entry Mode
The Contra entry can be passed using Double Entry mode where we have the option to select multiple
Debits and multiple Credits. To select multiple Debit and Credit ledgers in the Double entry mode, set Use
Single Entry Mode for Payment/Receipt/Contra to No in F12: Configure.
Refer to
F12: Configuration in Tally.ERP 9 for more details.
Entering in Double Entry Mode
Go to Gateway of Tally > Accounting Vouchers
1.
Select F4: Contra from the Button Bar or press F4.
If you pass the same entry in Double Entry Mode, it will be displayed as shown:
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Note: If you re qui re C r/Dr i nste ad of To/By , as e xpl aine d i n the Conf i gurati on se cti on,
acti vate the opti on Use C r/Dr i nstead of To/By duri ng entry i n F12: Confi gure .
Use Payment / Receipt Voucher as Contra
The Contra Voucher is used to indicate transfer of funds from

Bank account to Cash account

Bank account to Bank account

Cash account to Bank account.

Cash account to Cash account.
When you are passing a Payment voucher, you do not get the Cash and Bank Ledgers for selection in the list
of Ledger Accounts on the Debit side and when you are passing a Receipt voucher, you do not get the Cash
and Bank Ledgers for selection on the credit side.
However, for users who wish to use the Payment and Receipt vouchers for this nature of transaction,
Tally.ERP 9 has the flexibility of defining Payment and Receipt behaviour as per Contra voucher.
Go to Gateway of Tally > Accounting Vouchers
1.
Select F5: Payment from the Button Bar or press F5.
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2.
3.
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Set the option Use Payment as Contra to Yes in F12: Configuration screen.
Click Accept to save.
Refer to F12: Configuration in Tally.ERP 9 for more details.
If the option Use Payment as Contra is set to Yes in the F12: Configure screen, the cash and bank
accounts will be displayed for selection.
If the option Use Payment as Contra is set to No in the F12: Configure screen, the cash and bank
accounts will not be displayed.
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Payment Entry
Payment voucher is used to account all the payments made by the company by way of Cash/Bank. .
Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use
Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.
Creating a Payment Entry
Payment Voucher is used to record all bank and cash payments, For example: company settles a creditor's bill by
cheque.
To view the Payment Voucher entry screen:
Go to Gateway of Tally > Accounting Vouchers

Select F5: Payment from the Button Bar or press F5.
Payment voucher can be passed using Single Entry or Double Entry mode by configuring the
setting Use Single Entry mode for Pymt/Rcpt/Contra in F12 configuration.
For example: the company settles expenses of Conveyance, Staff Welfare, Postage and Stationery through
Cash in one voucher. This entry can be passed in single entry mode where you will be crediting the Cash
Ledger only once and the entry appears as shown below.
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Note: Si mil arl y the transacti ons can be re corde d in si ngle e ntry mode e ve n i n Re cei pt and
Contra vouche rs.
Payment entry in Voucher entry mode:
When you have multiple Debits and Credits in an entry, Double Entry mode is the suggested way of passing
the entry.
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Creating a Payment Entry with Narration for each Entry
If you want the narration details for every ledger you debit or credit (Single narration), you can configure
Tally.ERP's Narration details accordingly.
To activate the option Narration for each entry,
Go to Gateway of Tally > Accounts Information > Voucher Types > Alter
1.
Select the required Voucher Type.
2.
Enable the option Narrations for each Entry and accept the details.
3.
Return to Accounting Vouchers in Gateway of Tally and select the voucher type and pass
the entry.
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Narration for each entry option is available for all Accounting Voucher Types. Given below is an example
of a Payment transaction with narrations for each entry enabled:
The above entry consists of both common narration and narrations for each entry. In case of multiple
debit/credit entries, you can give single line narration separately for every ledger account selected.
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Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Warn on Negative Cash Balance
You can configure Tally.ERP 9 to prompt you with a warning when the Cash ledger reaches a negative
balance.
To activate Warning on Negative Cash Balance,
Go to Gateway of Tally > Accounting Vouchers

Set the option Warn on Negative Cash Balance to Yes in F12: Configure screen.

Accept the screen to save.
For Example:
Let us assume there is a cash balance of Rs.25000 and you need to make a payment of Rs.26000 towards
Advertising expenses. This results in a negative cash balance.
The Payment entry is displayed as shown:
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Tally.ERP 9 prompts you with a negative cash warning message and the credit cash balance in RED Colour.
This will help you to decide whether to proceed with the entry or not.
Pre-Allocate Bills for Payment/Receipt
By enabling this option in F12: Configure, you can pre-allocate the bills before specifying the Ledger amount. This
Configuration enables the user to select the bills first before the total amount can be updated in the amount field.
For Example:
The
company
pays
against
the
Purchase
bills.
Here
set
the
option Pre-Allocate
Bills
for Payment/Receipt as Yes. Now while making the entry immediately after selecting the party the Bill-wise
details screen for the party appears.
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Here on selecting Agst Ref the List of Pending Bills for the party are displayed.
Note: For the Pendi ng Bill s tabl e to be di spl aye d the F12 opti on Show Tabl e of Bi ll
Detai l s f or Selecti on shoul d be se t to Yes. If i t i s se t to No the n the l i st of pendi ng bi ll s
are not di splaye d
After selecting the Bills press Enter to obtain the voucher entry screen
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In the above screen it can be seen that the Bill-wise details are also appearing in the voucher entry screen.


To obtain this Billwise details, the F12:Configure option Show Bill-wise Details should be set to Yes.
To obtain the Credit period, the F12:Configure option Expand into multiple lines should be set to Yes.
Receipt Entry
Any money received from debtors against sales Invoices or on Account and for all transactions where money
is received are accounted or entered into Tally.ERP 9 using the Receipt Voucher.
Creating a Receipt Entry
Any money received from debtors against sales Invoices or on Account and for all transactions where money
is received are accounted or entered into Tally.ERP 9 using the Receipt Voucher.
To view the Receipt Voucher screen:
Go to Gateway of Tally > Accounting Vouchers

Select F6: Receipt from the button bar or press F6.
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For example, if your company receives money from a customer for an earlier transaction say sales, and the
same is passed through a Receipt Voucher:

Credit the customer account and debit the Cash account, if you receive cash or

Debit the Bank account where you need to deposit the money, if you receive Cheques.
The entry in double-entry mode is displayed as shown:
Note: Si mi lar to Payme nt and Contra vouche rs, the Re ce i pt voucher can be made usi ng
Si ngle e ntry mode or Vouche r mode .
Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Printing Receipt Voucher as Formal Receipt
Suppose the company receives a payment from a customer against a particular invoice and a Formal Receipt
has to be issued acknowledging receipt of the same.
To activate this facility:
Go to Gateway of Tally > Accounts Info > Voucher Types > Alter
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Select the Voucher Type Receipt.
2.
Set the option Print Formal Receipt after saving to Yes.
3.
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Click Accept to save.
The printed Formal Receipt is shown as below after making the Receipt Entry:
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Note: An addi ti onal fi el d Name on Recei pt appe ars i n the Recei pt Voucher scre e n. The
re cei pt wi ll be printe d ei the r wi th the Le dge r Name or the name gi ve n in the Name on
Re ce i pt fie l d.
To print the Receipt voucher,
Go to Gateway of Tally > Accounts Info > Voucher Types > Alter
1.
Select the Voucher Type Receipt.
2.
Set the option Print after saving voucher to Yes.
3.
Enter a receipt voucher and Tally.ERP 9 prompts to print the Formal Receipt (to be issued) and
then the Receipt Voucher (for the company's records).
4.
In F12:
The Receipt voucher for the same information is printed as shown:
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Note: The i nformati on re qui re d can be confi gure d unde r F12: Conf i gure afte r gi vi ng the
Pri nt Command.
Purchase Entry
Purchase voucher is used to record the Purchase transactions of the company. The entry can be passed
using the Voucher mode or the Invoice mode where the calculations can be automated and the user can
experience the ease of feeding the transactions into the system.
Creating a Purchase Entry
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When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase
transactions of the company.
To pass a Purchase Voucher:
Go to Gateway of Tally > Accounting Vouchers

Click on F9:Purchase on the Button Bar or press F9.
For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/a) Debit Purchase Account
b) Credit Party Account
To pass a Purchase entry in the Invoice mode, you need to enable the option Allow Invoicing option
in F11:Features (F1: Accounting or F2:Inventory Features).
Invoice mode is of two types, namely

An Account Invoice

An Item Invoice
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Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an
Account Invoice. This is useful especially when a Service Bill is entered and does not include Inventory.
Pass a purchase Invoice for Service availed from XYZ Couriers.
Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger
account. This is useful to record all the Inventory movements in books of account.
Pass a Purchase Invoice against purchase of Item A � 100 Nos. @ Rs. 10/= per quantity from LMN &
Company.
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Configuring a Invoice
Before creating the Purchase Invoice, you can set your Invoice Configurations from F12 configure:
Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice)

Select F12 Configure.
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Set the options, as required.
Purchase Invoice Configuration
1.
Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is
set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the
default name and address present in the ledger.
2. Allow separate Buyer and Consignee names: Customers who are into consignment business and
would like to have the Consignee details on the Invoice, have to set this option to Yes.
3. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single
Purchase Ledger in the Invoice, you need to set this option to Yes for faster data entry.
4. Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically
as defined in voucher type master in ascending order.
5. Use Additional Description(s) for Item Name: If you would like to specify any additional description
for item during entry, this option has to be enabled.
6. Consolidate Stock Items with same rates: If you would like to consolidate the stock items having
same rates in Invoice, set this option to Yes.
7. Importer�s Options: This is useful for import transactions.
8. Show turnover achieved with Customer: This option will help to view the turnover details during
entry.
9. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the
Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields.
10. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with
quantity details. You can then check which item is having negative stock balance.
11. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for
selection during entry by configuring this option.
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12. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be
available for selection during entry.
13. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated
after considering the additional Expenses.
For more details on Purchase Voucher mode configurations refer
Voucher Entry Configuration
Special Keys on the Button Bar:
When you are passing an Item Invoice in Invoice mode, the following options will be available in the
Button Bar.
Alt+I � Acct Invoice � You can toggle between Item Invoice and Account Invoice, by clicking on this
option on the Button Bar or pressing Alt+I or vice-versa.
Ctrl+V � As Voucher � You can toggle between Invoice mode and Voucher mode, by clicking on this
option on the Button Bar or pressing Ctrl+V or vice-versa.
Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Creating Purchase Entry for Expenses/Fixed Assets
In the normal scenario when a Purchase voucher is entered, only the Ledgers created under Purchase
Accounts are displayed for selection. In certain cases if the user would like to pass the Expenses incurred or
Fixed Assets purchase through a Purchase voucher which are normally entered using Journal voucher, the
same is possible by enabling the option Allow Expenses/Fixed Assets in Purchase Vouchers in F12:
Configure ( Voucher Entry Configuration) in voucher mode.
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For Example: Pass a purchase entry towards purchase of Computers from Supplier A.
1) Debit Computer Account (Grouped under Fixed Assets).
2) Credit Supplier A Account.
Note:
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1. O n e nabl i ng Al l ow Expense s / Fi xe d Asse ts i n Purchase vouche rs i n Invoi ce mode the
Fi xe d Asse t and Expense l edge rs appe ar for Accounting Al l ocati on for i te ms.
2. The Current Asset l e dgers appe ar by de faul t. In vouche r mode the Current Asse t le dge rs
appe ar afte r the D r and Cr from the 3rd l i ne . In i nvoice mode the same appe ars as
addi ti onal le dge rs.
Sales Entry
Sales Voucher is used to record the Sales transactions of the company. You can pass an entry using the
Voucher mode or the Invoice mode where the calculations can be automated and the transactions can be
fed into the system easily.
Creating a Sales Entry
When a company sells goods on credit or cash, Sales voucher is used to record all the Sales transactions of the
company.
To pass a Sales Voucher:
Go to Gateway of Tally > Accounting Vouchers

Click on F8:Sales on the Button Bar or press F8.
For example, if you are selling goods to Debtor A for a value of Rs. 10000/a) Debit Customer�s Account
b) Credit Sales Account
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Creating a Sales Invoice
When a sales transaction is made, a document detailing the transaction (item name, tax, etc) has to be
given to the buyer or debtor as proof of purchase by him. This document is called Invoice or Bill or Cash
Memo. Tally.ERP 9 provides the option of creating Invoices.
Invoice mode is of two types. It may be:

An Account Invoice

An Item Invoice
Account Invoice:
Sales Account Invoice is generally used by professionals such as doctors and consultants who require to
issue an invoice for certain services provided such as consultancy charges, professional fees, etc.
Trading and manufacturing organizations also use the Account Invoice for invoicing service charges.
On the Sales entry screen, click on Acct Invoice button, which is displayed on the Button Bar on the righthand side of the screen to display the Sales Account Invoice screen as shown.
Pass a Sales Account Invoice for Service provided to Debtor B:
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Tally.ERP's Account Invoice mode displays the list of ledger accounts, which can be invoiced as required.
This is unlike Item Invoice where Tally.ERP 9 displays the list of stock items.
Item Invoice:
Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item
Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing
organizations commonly use this format.
On the Sales invoice screen, click on the button Item Invoice, which is displayed on the Button Bar on the
right side of the screen and the Sales Item Invoice appears as shown below:
Pass a Sales Invoice against sale of Item A � 50 Nos. @ Rs. 15/= per quantity to Debtor C:
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Tally.ERP's Item Invoice mode displays the list of stock items, which can be invoiced as required.
Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Configuring a Invoice
Before creating the Invoice, you can set your Invoice Configurations from F12 configure:
Go to Gateway of Tally > Accounting Vouchers > F8: Sales/F9: Purchases (As Invoice)

Select F12 Configure.
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Set the above options, as required.
Sales Invoice Configuration
1.
Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this
option is set to No, Print Default Name and Address of Party will be enabled for
configuring.
2.
Allow separate Buyer and Consignee names: Customers who are into consignment
business and would like to have the Consignee details on the Invoice, have to set this option
to Yes.
3.
Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to
a single Sales Ledger in the Invoice, you need to set this option to Yes for faster data entry.
4.
Use Defaults for Bill Allocations: Setting this option to Yes will allocate Bill Numbers
automatically as defined in voucher type master in ascending order.
5.
Use Additional Description(s) for Item Name: If you would like to specify any additional
description during entry, this option has to be enabled.
6.
Consolidate Stock Items with same rates: If you would like to consolidate the stock items
having same rates in Invoice/Challans, set this option to Yes.
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7.
Use Pre-Closure Order Details: To pre-close an order while raising a sales invoice for partial
execution, this option needs to be enabled.
8.
Exporters Options: This is useful for exporting and importing transactions.
9.
Show turnover achieved with Customer: This option will help you see the turnover details
during entry.
10. Allow modification of ALL fields during entry: Default order/delivery note entries appearing
in the Invoice can be changed during Invoice entry. Set this option to Yes to permit
modification of all fields.
11. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative
Stock with quantity details. You can then check which item is having negative stock balance.
12. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks
for selection during entry by configuring this option.
13. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will
be available for selection during entry.
14. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be
calculated after considering additional Income/Expenses.
Printing a Sales Invoice
To print any Invoice/voucher, press ALT+P or click on the button Print. You can configure the voucher
type to print automatically after saving the voucher for which, the option Print after saving Voucher must
be set to Yes.
Note: You can confi gure the pri nti ng opti ons, by se le cting the appropriate buttons. You can
gi ve addi ti onal information, change ti tl e s, pri nt addi ti onal pages, and change pri nter
se tti ngs.
Buttons specific to sales invoice printing options
Button
Shortcut
Behavior
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Keys
L
Alt+L
To select the language in which the Invoice is to be printed.
I
Alt+I
To preview the Invoice
T
Alt+T
To change the Report Titles
G
Alt+G
To select the Page range for printing
R
Alt+R
To change the method of printing
F
Alt+F
To change the print format/mode
C
Alt+C
To increase/change the number of copies to print
S
Alt+S
To change/select the Printer
The buttons Pre-Printed and Quick Format toggle between Plain Paper and Neat Format respectively.
These are print specifications that you set. Pre-printed is for pre-printed stationery. Quick Format does not
give fonts or other niceties but is ideal for fast printing.
The Invoice Printing Configuration appears as shown.
Set the print options as desired. You can configure the invoice as per your requirement. The options depend
on the various F11: Features and F12: Configure parameters, that have been set for your company and
for the voucher either by you or by the administrator.
The printed Sales Invoice will appear as shown:
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Allow Income Accounts in Sales Vouchers
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Generally, all the Sales made by the Company are recorded using Sales Voucher. In certain cases, the user
would like to record the Income ledgers also in the Sales Voucher, the same is possible by enabling the
option Allow Income Accounts in Sales Vouchers in F12 configuration in voucher mode.
For Example: Pass a sales entry towards Professional Income from Customer A.
1.
Debit Customer A Account
2.
Credit Professional Income Account grouped under Indirect Income
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Note:
1. O n e nabl i ng Al l ow Income Accounts i n Sale s Vouche rs the Income l e dg er wi ll be avail able
for se l e cti on i n vouche r mode for cre di t i n the se cond l i ne .
2. In i nvoi ce mode the i ncome l e dge r w ill be avail able for Accounti ng al l ocati on and al so as
addi ti onal le dge r.
Inventory Allocations & Other features in Purchase / Sales Vouchers
If the Purchase and Sales vouchers are to be considered in financial transactions along with Inventory
details, you need to enable the option Inventory Values are affected in Ledger Master.
The inventory details that you give in an accounting voucher (like Sales and Purchase Voucher), affects
stocks by immediately updating them, only if Tracking Numbers is not activated in F11: Features.
The information that you need to give in the inventory allocation sub-screen depends on the features
enabled for the company.
A typical inventory allocation sub-screen appears as shown.
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Name of Item
Select item from the list of items or create a new item by pressing Alt+C
Location
If you have more than one location you must specify the location to which this item is related.
1.
Set Maintain Multiple Godowns to Yes in the F11: Inventory Features.
2.
Specify the Godown, Quantity, Rate and Amount for the item.
You can have different Godown locations. The default godown available is Main Location.
Quantity
We have to specify the quantity of stock item which is purchased/sold.
Enable the option Actual and Billed Quantities to Yes from F11:F2 Inventory features. The actual
quantity updates stock and the billed quantity affects the accounts. Give the quantity either in the main unit
or the alternate unit. You may even specify quantities in both units (i.e., with alternate units), for example 1
dozen = 12 Nos.
Rate
Enter the rate for the Stock Item. If you have entered Standard Rate for the item (Standard Cost and
Standard Selling Price � see Item Master), the voucher will select the relevant standard rate for that date
by default. You can modify it while entering the voucher.
Per
Enter the unit of measure for the quantity of the item here. This can be the main unit or even the
alternate unit.
Amount
The quantity multiplied by the rate per unit is the amount.
End of List
In all multiple allocations or selections, you have to select the option End of List or press Enter, at the first
blank field. This would accept the multiple allocations and take you back to the parent screen. For example,
Multiple Locations, Batches or Items.
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Batch Wise Details
If you wish to maintain the Inventory in Batches, you need to set the option Maintain Batch-wise
Details to Yes in F11:F2: Inventory Features.
If required, you can also set the option Set Expiry Dates for Batches to Yes. Once you do this, you will
see the option Maintain in Batches in the Stock Item Creation Screen.
If you set this to Yes, you will find the following in the Item Allocation screen:

Track Date of Mfg

Use expiry dates
Batch Number
Select a batch number from the list of existing batch numbers, or create a new number for a new batch.
Mfg. Date
Mfg Date appears only if it is activated. Enter the date of manufacture. This enables you to set the expiry
date for the batch as a period from the date of manufacturing. For example, three months from the date of
manufacture.
Expiry Date
This field appears, only if it is activated. Enter the date of expiry or a period from the date of manufacture.
F12 Configuration � Other Options
Honor Expiry Dates usage for Batches
If you would like to select the Item having the Batch which is already expired, you have to set this option
to No. If you have to restrict selection of expired batches this option is to be set to Yes.
Separate Discount column on Invoices
To account the Trade discounts, you can enable the option Separate Discount column on
Invoices in F11:F2 Inventory features which will calculate the discounts automatically during Invoice
entry.
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Use Common Ledger A/c for Item Allocation
When you start entering the voucher, Tally.ERP prompts you for the Sales Ledger to be allocated. Any
number of stock items or account ledgers can be selected one after another to enable faster data entry.
To activate this:
1. Set Use Common Ledger A/c for Item Allocation to Yes in F12: Configure on the
invoice entry screen.
2.
Accept the screen to save the voucher.
If you have to allocate different Items to different Sales Ledgers, you have to set the above option to No.
Calculate Tax on Current Sub-total
To enable automatic calculations of taxes and duties on sub totals:
1.
Set Calculate Tax on Current Sub-total to Yes in F12: Configure (Sales Invoice
Configuration) on the sales invoice screen
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Accept the screen to save.
Pass a Sales entry as shown:
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In the above scenario, the Duty is calculated after deducting Labour charges from the Item value.
Refer Batchwise details and Mfg. and expiry dates for more details on activating batch-wise details and
Setting manufacturing date and Expiry dates.
Journal Entry
Journal Vouchers are used to adjust the debit and credit amounts without involving the cash or bank
accounts. Hence, they are referred to as adjustment entries.
Creating a Journal Entry
Journal entries are usually used for finalization of accounts.
To pass a Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers

Click on F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest due. If you have to receive Interest
from a party, the same can be entered using Journal Voucher.
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Debit the Party
2.
Credit the Interest Receivable Account
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The Journal entry is displayed as shown:
Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting their Account in your Books of
Accounts for the stated reason or vise versa. It is commonly used in case of Purchase Returns,
Escalation/De-escalation in price, any other expenses incurred by you on behalf of the party etc.
Debit Note can be entered in voucher or Invoice mode.
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You need to enable the feature in F11: Accounting or Inventory features.


To use it in Voucher mode you need to enable the feature in F11 :Accounting Features Use Debit / Credit Notes.
To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.
To go to Debit Note Entry Screen,
Go to Gateway of Tally > Accounting Vouchers

Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking Ctrl+V.
Pass an entry for the goods purchased returned to Supplier A:
Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Inventory Vouchers
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Inventory Vouchers perform the function in the inventory system that accounting vouchers do in the
accounting system. Inventory Vouchers are also means of entering transactions. Accounting vouchers will
update only Accounts, but Inventory vouchers will update both Accounts and Inventory. Inventory vouchers
record the receipt and issue of goods/stock (Movement of goods), the transfer of stock between locations
and physical stock adjustments.
If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the
Balance Sheet stock figures. The stock balances will be maintained separately.
Set the option Integrate Accounts and
Features/Inventory Features.
Inventory to Yes in F11:
Features :
F1:
Accounting
You can trace a transaction from the beginning i.e., goods transfer stage to the financial accounting stage
irrespective of integration status.
For example, the purchase of stock can be tracked from the purchase voucher through the receipt note,
through invoice from the supplier and also through eventual payment.
Predefined Inventory Vouchers in Tally.ERP 9
Tally.ERP 9 comprises of the following predefined Vouchers, to suit different business requirements for
recording various transactions. Tally also allows you to create user-defined Vouchers (Voucher Types) as per
your requirements.

Purchase order

Sales order
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Job Work Out order

Job Work In order

Receipt note

Delivery note

Rejections Out

Rejections In

Material Out

Material In

Stock Journal

Manufacturing Journal

Physical Stock
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Receipt Note Voucher (GRN)
This voucher type is used for recording goods received from the supplier.
To enter the Receipt Note Voucher,
1.
2.
3.
From F11: Inventory Features, Enable the option Use Tracking Numbers (Delivery /
Receipt Notes).
Go to Gateway of Tally > Inventory Vouchers
Press the button Alt+F9 or Select the button F9: Rcpt Note from the button bar.
Under F12: Configure
Details to Yes.
(Receipt
Note
Configuration) set
the
option Accept
Supplementary
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For more details on Receipt Note configurations refer Voucher Entry Configuration
For example, consider the situation where a company receives Item A from a supplier B, if a Purchase Order
exists for that Supplier B, select the Order Number from the List of Orders pop up menu to bring up the
order particulars automatically.
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Once you accept the Order details, the cursor will move to the column Name of Item. On pressing Enter,
the Item Allocations screen is displayed.
You can select existing Tracking number or create a new Tracking Number. Tracking number is the
reference to have a link between transactions. For eg: if Tracking Number is selected in the Receipt Note,
the details of the items are automatically displayed in the Purchase Invoice.
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The Receipt Note after completion will appear as shown :
Party�s A/c Name
Select the Party Ledger from the List of Ledger Accounts from whom the goods have been received.
Name of Item
Once you select the Order Number from the List of Orders, the item name will be displayed automatically.
Quantity, Rate and Amount
Since the Order number is selected from the List of Orders, quantities, rate and amount will be displayed
automatically.
For more details on F12 configurations refer
Invoice/Order Entry Configuration
Rejections In Voucher (Sales Returns)
A Rejections In Voucher is used to record goods that are rejected and returned by the customer.
To enter the Rejections In Voucher,
1.
2.
From F11: Inventory Features, Enable the option Use Rejection Inward / outward Notes.
Go to Gateway of Tally > Inventory Vouchers
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Press Ctrl+F6 or select the button F6: Rej. In from the Button Bar
For example, Customer A returns Item A delivered by the company.
Ledger Account
Select the Party�s name from the List of Ledger Accounts, from whom the goods have being returned.
Customer�s Name and Address
Once Party�s name is selected under Ledger Account, this column will be automatically populated with
address, if provided in the Ledger Master creation screen.
Name of Item
Select the Item from the List of Stock Items. Press Enter button on the Item, it will display the Item
Allocations screen.
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Under the List of Tracking Numbers, the details of Delivery note along with Tracking number will be
displayed, select the same. Mention the quantities returned.
Narration
Give the narration, if required.
Note : In F12 conf i guration , Show Batch Wi se Detai l s and Show Godown � wi se
Detai l s wi ll show the batch and godow n de tail s i n the vouche r entry scree n, i f se t to Yes.
Delivery Note Voucher
The Delivery Note Voucher is used for recording goods delivered to a customer.
To pass the Delivery Note voucher,
1.
2.
3.
From F11: Inventory Features, Enable the option Use Tracking Numbers (Delivery / Receipt
Notes).
Go to Gateway of Tally > Inventory Vouchers
Press Alt+F8 or select the button F8: Dely Note from the button bar.
Under F12: Configure (Delivery Note Configuration) set Accept Supplementary Details to Yes.
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For more details on Delivery Note configurations refer Voucher Entry Configuration
For example, the company delivers goods to Customer A. If a Sales Order exists for that customer, selecting
the appropriate Order Number from the List of Orders pop-up menu will automatically bring up the relevant
particulars.
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Once you accept the Order details, the cursor will move to Name of Item column. On pressing Enter, the
�Item Allocations screen is displayed.
You may select an existing Tracking number or create a new Tracking Number. Tracking number is the
reference to have a link between transactions. For eg: if Tracking Number is selected in the Delivery Note,
this will automatically display the details of the items in the Sales Invoice.
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The Delivery Note Voucher after completion will appear as shown :
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Party�s A/c Name
Select the Party Ledger from the List of Ledger Accounts to whom goods are delivered.
Name of Item
Once we select the Order Number from the List of Orders, the item name will be displayed automatically.
Quantity, Rate and Amount
Since the Order number is selected from the List of Orders, quantities, rate and amount will be displayed
automatically.
Rejections Out Voucher (Purchase Returns)
The Rejections Out Voucher records goods that are rejected and returned to a supplier.
To view Rejections Out Voucher:
1.
2.
3.
From F11: Inventory Features, Enable the option Use Rejection Inward / outward Notes.
Go to Gateway of Tally > Inventory Vouchers
Press Alt+F6 or Select the button F6: Rej. Out from the Button Bar
For example, the company returns Item A received from Supplier A.
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Ledger Account
Select the Party�s name from the List of Ledger Accounts, to whom you are returning the goods.
Supplier�s Name and Address
Once Party�s name is selected under Ledger Account, this column will be filled up automatically with the
address, if provided in the Ledger Master creation screen.
Name of Item
Select the Item from the List of Stock Items. Press Enter on the Item, it will display the Item
Allocations screen.
Under the List of Tracking Numbers, the details of Receipt note along with Tracking number will be
displayed, Select the same and mention the quantity rejected.
Narration
Give the narration, if required.
Note : In F12 confi gurati on, Show Batch Wi se De tai ls and Show Godow n � w ise D etail s wil l
show the batch and godow n de tail s in the vouche r e ntry scre e n, i f se t to Yes.
Material Out
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The Material Out Voucher is used to record the material transfer out.
In case of Job Work - Material Out voucher can be used by the Job Worker as well as Principal
Company.
Principal Company: Can use this Voucher to transfer the Raw Materials to the Job Worker.
Job Worker: Can use this voucher to transfer the Finished goods to the Principal Company.
This voucher can also be used for any other purpose other than Job Work.
To pass the Material Out voucher,

From F11: Inventory Features, Enable the option Use Material In/Out
Note: Thi s opti on wi ll automati cal l y be se t to Yes i n case All ow Job O rder Processi ng i s
e nable d i n F11: Inventory Features , as the Material In/O ut i s associ ate d with Job O rde r
Proce ssi ng.

Go to Gateway of Tally > Inventory Vouchers.

Press Ctrl+J or click on Ctrl+J: Material Out
Party's A/c Name
Select the Supplier�s (Job Worker) / Customer's (Principal Company) name from the List of Ledger
Accounts. Use Alt + C to create a new account.
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The Party Details screen is displayed.
Select the required Order No(s) / option from the List of Orders.
Provide the other details as shown above and Save to return to Inventory Voucher Creation screen.
Destination Godown
Select the required Godown from the List of Godowns.
Note: Se l e ct the appropri ate Godow n base d on the type of Job O rde r.
In case the Job Worker i s i ssui ng the fi ni she d goods to the Pri nci pal Company ,
the Desti nati on Godown shoul d be se t to Not Applicabl e .
In case the Pri ncipal C ompany i s i ssuing raw mate rial s to the Job Worker, the Godow n
e nable d wi th Our S tock wi th Thi rd Party in Godow n maste rs shoul d be sel e cted.
Name of the Item
Select the Stock Item which is issued, from the List of Stock Items. The Item Allocations sub-screen is
displayed.
Select the Order No, Component of, Godown, Quantity, Rate and Amount as shown:
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Note: The C om ponent of w il l automaticall y di splay the Pri mary Item of the sel e cte d
compone nt.

Press Enter to return to Inventory Voucher Creation screen.
Narration
This field is optional. Enter the required particulars concerning the material transfer.
Press F12 configuration to enable/disable other options as shown:
Material In
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The Material In Voucher is used to record the material transfer in.
In case of Job Work - Material In voucher can be used by the Job Worker as well as Principal
Manufacturer.
Principal Manufacturer: Can use this Voucher to record the receipt of Finished goods/ Scrap/ByProduct/Co-Product from the Job Worker. In this voucher Principal Manufacturer can record the consumption
of components used (own consumption like- wax, screw etc.) by the Job Worker
Job
Worker:
Can
use
the Principal Manufacturer.
this
voucher
to
account
the
receipt
of Raw
material from
This voucher can also be used for any other purpose other than Job Work.
To pass the Material In voucher,

From F11: Inventory Features, Enable the option Use Material In/Out
Note: Thi s opti on wi ll automati cal l y be se t to Yes i n case All ow Job O rder Processi ng i s
e nable d i n F11: Inventory Features , as the Material In/O ut i s associ ate d with Job
O rder Processi ng .

Go to Gateway of Tally > Inventory Vouchers.

Press Ctrl+W or click on Ctrl+W: Material In.
Party's A/c Name
Select the Supplier�s (Job Worker) / Customer's (Principal Company) name from the List of Ledger
Accounts. Use Alt + C to create a new account.
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The Party Details screen is displayed.
Select the required Order No(s) / option from the List of Orders.
Provide the other details as shown above and Save to return to Inventory Voucher Creation screen.
Destination Godown
Select the required Godown from the List of Godowns.
Note: Se l e ct the appropri ate Godow n base d on the type of Job O rde r.
In case the Job Worker i s re cei vi ng the raw mate ri al from the Pri nci pal Manufacture r,
the Desti nati on Godown shoul d be se t to Not Applicabl e .
In case the Pri ncipal Manuf acturer i s re cei vi ng the fi ni she d goods from the Job Worker,
the Godow n enable d wi th O ur Stock w ith Thi rd Party shoul d be sel e cte d for Consumpti on
Godow n.
The Source Godown i n Materi al In i s di spl aye d as Consumpti on Godown w he n
the Pri nci pal Manuf a cturer re cei ve s the fi ni she d goods from the Job Worker usi ng
Godow n e nabl e d wi th O ur Stock wi th Thi rd Party and confi gure d to Al l ow
C onsum pti on i n Materi al In vouche r type .
Name of the Item
Select the Stock Item which is received
Allocations sub-screen is displayed.
/
issued,
from
the List
of
Stock
Items.
The Item
In case the finished goods/scrap is received from a Job Worker, the Item Allocation for the selected item
is displayed as follows:
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Consider as Primary Item
Set this option to Yes, in case the selected item is the Primary Item for which the consumption has to take
place.
BoM Name
Tally.ERP 9 will list the BoM created for the selected item in the List of BoM. Select the required BoM.
Consider as Scrap
Set this option to Yes, in case the selected item is a Scrap Item.
Note: Thi s opti on wi ll ski p w he n Consi der as Primary Item i s se t to Yes.
Select the Godown, Quantity, Rate and Amount as shown:
Note: Whe n Pri m ary Item i s se le cte d the Component of wi ll be set to Not
Appl i cable and w he n the Scrap Item i s se le cte d the Component of wil l se le ct
the Pri m ary Item .
The Godown se le cte d i n the Item Al l ocati on should not be e nabl e d w i th options O ur
Stock wi th Thi rd Party and Thi rd Party Stock wi th us i n Godow n maste rs.

Press Enter to return to Inventory Voucher Creation screen.
Narration
This field is optional. Enter the required particulars concerning the material transfer.
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Press F12 configuration to enable/disable other options as shown:
Stock Journal Voucher
Stock Journal is a Journal in which all types of Stock Adjustments are entered.
The stock adjustment may be due to:
Inter-Godown Transfer
This is useful to transfer the goods from one location to another. The quantity of Stock remains the same,
but the Location changes.
Additional Cost/Expenses involved in the Transfer of goods.
You can also account the additional cost incurred in connection of transfer of materials from one location to
another.
Accounting for Wastage of stock or shortage of stock
There may be a shortage or wastage of stock items, the quantity may have got changes. In such cases, you
have to enter a stock journal to account for the increase or decrease in the Stock Item.
Manufacturing Process
If you are involved in the manufacturing process in which raw materials are consumed and finished goods
are produced, then you can create a manufacturing Journal Voucher also.
To view the Stock Journal Voucher:
Go to Gateway of Tally > Inventory Vouchers
1.
Press the buttons Alt + F7 or Select the button F7: Stk Jrnl from the Button Bar
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For example, the company transfers Item B from the warehouse to the shop.
Note: To ge t the Godow n de tail s enable the feature Mai ntai n Multi pl e Godowns i n F11:
Features: F2: Inventory Features .
Date
Enter the Date of Stock Journal entry.
Ref
Enter the reference number, if any, or leave it blank.
Note: To ge t the re fe re nce col umn i n the Stock Journal , i n F12: Conf i gurati on scre en
se t Yes to Use Ref . Num ber i n Stock Journal .
Following are the two parts of a Stock Journal voucher:
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Source (Consumption)
Name of Item
Select the name of the Item from the �List of Items�, which needs to be transferred under �Source�.
Godown
Select the Godown from the List of Godowns, from which goods are getting transferred.
Quantity, Rate and Amount
Enter the quantity of the items that is getting transferred and rate, amount will popup automatically.
Note: The rate that i s capture d he re i s obtai ne d from the Godow n summary.
Destination (Production)
Name of Item
Select the name of the Item from the List of Items under the column Destination.
Godown
Select the Godown from the List of Godowns, to which goods are being transferred.
Quantity, Rate and Amount
Enter the quantity of the items that is being transferred. The rate and amount will be displayed
automatically.
Note: You can have a di ffere nt Rate for Source ( Consumpti on) and for D esti nation
( Producti on) col umn for the same Stock Ite m.
When there are some Additional Cost/Expenses incurred, then you can account the same in the Stock
Journal.
After mentioning the quantity, rate and amount under Destination (Production), the �Additional Cost
Details� screen will be displayed. Enter the additional cost/expense incurred.
Note: To ge t the addi ti onal cost de tai l s i n the Stock Journal vouche r, e nable Track
addi ti onal costs of Purchase i n F11: Features: F2: Inventory Features .
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Narration
Enter the narration, if required.
Printing Stock Transfer
Select the option Destination Godown on Top of Voucher in Printing Configuration While printing Stock
Transfer Voucher
Manufacturing Journal Voucher
Go to Gateway of Tally > Inventory Vouchers > Alt +F7 > select Manufacturing Journal
For more information on creating Manufacturing Voucher type refer Creating Manufacturing Journal.
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Name of Product
Select the product which needs to be manufactured from the List of Items. The Item selected in Name of
Item field will be the primary Item which will be manufactured using different components.
BOM Name
Select the Bill of Material if you want the components utilised to manufacture the finished goods to be
displayed automatically.
Note: If BO M i s se le cte d the Components use d for the manufacture of fi nishe d goods &
the By-Products/C o -Prod ucts or Scrap produce d du ri ng manufacturi ng w il l be de faul te d.
For more details on creating BOM & recording Manufacturing Journal using BOM refer the topic Creating Bill of Materials for a Stock Item
Godown
Select the godown where you would like to place the produced goods.
Quantity
Enter the quantity to be produced.
% of Cost Allocation
This field displays the Percentage of Cost of Allocation to the Primary Item manufactured.
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Note: In a manufacturing proce ss i f the re are no by - Products/ co - products or scrap prod uce d
the n the % of C ost of Allocati on to Pri mary Item w il l 100%.
If the re are any by-products/Co-products or scra p i s manufacture d the n the % of Cost
of All ocati on to pri mary ite m wi ll be Total Cost - Cost al l ocated to By Products /Co
Products /Scrap.
Batch Name, Mfg Date, Expiry
If the item to be manufactured in batches then enter the Batch Name, Manufacturing Date and Expiry Date.
Components (Consumption)
The list of Sub-Component items which will be used to produce the finished goods, need to be selected here.
1.
Name of Item: In this field select the components used for the manufacture of finished goods.
2.
Godown: In this field select the Godown from where the components are consumed for
production.
3.
Quantity: In this field mention the Quantity of Raw materials required to manufacture the
finished goods.
4.
Rate: In this field mention the rate (purchase cost) of the raw materials used in the
manufacture of finished goods
5.
Amount: In this filed the Amount will be calculated automatically based
on Quantity & Rate of item
Co-Products/ By-Products /Scrap
The list of By-products/ Co-products or Scrap produced during the manufacture of finished goods need to be
selected here
1.
Name of Item: In this field select the By-product/Co-product/Scrap name which is
produced in the process of manufacture of finished goods
2.
Godown: Select the godown where the By-product/Co-product/Scrap produced will be stored
3.
% of Cost Allocation: In this field specify the % of cost of allocation to be made towards the
By-product/Co-product/Scrap produced
4.
Quantity: In this field mention the Quantity of By-product/Co-product/Scrap produced
5.
Rate: This is the rate of producing of By-product/Co-product/Scrap. (Rate = Amount/Quantity)
Rate will be displayed automatically
6.
Amount: Amount will be displayed automatically based on the % of Cost
Allocation defined for the By-product/Co-product/Scrap produced. Tally.ERP 9 calculates the %
of Cost Allocation on Effective Cost
In the above Example: Amount of By-Product 1(5,050) = 20,20,000 (Effective Cost) X 0.25\100
(% of Cost Allocation)
Cost of Components
This field displays the total cost of the components (raw materials) used in the manufacture of finished
goods.
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Type of Addl. Cost
Enter the additional cost incurred for manufacturing the finished goods, if any.
Total Addl. Cost
The total of all additional cost will be displayed here.
Effective Cost
The Effective cost is total of Cost of Components (Consumption) + Additional Cost incurred to
manufacture the finished goods & Co-Product/By-product or Scrap
In the above example: 20,00,000 + 20,000 = 20,20,000 is incurred manufacture Item B (Primary Item),
By-Product 1 & Scrap
Allocation to Primary Item
The cost allocated to manufacture the Primary Item will be displayed in this field.
Allocation to Primary Item = Effective Cost - Total cost of Co-products/By-Products/Scrap
Effective Rate of Primary Item
This is the rate of the Primary Item Manufactured (finished item).
In the above example: 20,08,890 / 2000 (number of Item B produced) = 1004.45/nos.
Manufacture of Finished Goods without By-Product/Co-Product/Scrap
In some manufacturing processes only finished goods will be produced without By-product/Coproduct/scrap. In those cases users may not need the provision to move to By-Product/Co-product/scrap
section. You can configure the movement of cursor to By-Product/Co-product/scrap section.
In case, where you don't have By-Product/Co-product/scrap details to skip the movement of cursor to that
section
In F12: Configure (Stock Journal Configuration)

Set the option Skip Co-Product/By-Product/Scrap Stock Item to Yes
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Note: Whe n the opti on Skip Co-Product/By -Product/Scrap Stock Item i s band the use r
i s re cordi ng a Manuf acturi ng Journal for a stock i tem for w hich the BO M i s cre ate d by
capturi ng the de tai ls of By- Product/ Co - Product/ Scrap ; the n Tall y.ERP 9 wil l i gnore the
confi gurati on and wi ll capture the detail s of By - Product/ Co - Product/ Scrap. It w il l al so
al l ow to modi fy the de tai l s i n By - Product/ Co - Product/ Scrap se cti on.
Transfer Journal Voucher
Tally.ERP 9 allows you to transfer materials from one Godown to another. The transfer of materials is done
using the Transfer Journal Voucher.
To create Stock Journal for Inter-Godown Transfers,
Go to Gateway of Tally > Inventory vouchers > Alt+F7 for Stock Journal and select the class.
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Pass the stock transfer entry.
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Printing Stock Transfer Voucher
Press Alt+P to print the Stock Transfer Journal Voucher
F12 Print Configuration
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While printing Stock Transfer Voucher, Select the option Destination Godown on Top of Voucher in Stock
Journal Printing Setup, the Destination Godown is printed on Top of Voucher instead of separate rows.
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Additional Information
Refer Voucher Classes for Stock Journals in Job Costing for more details.
Physical Stock Voucher
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Physical Stock Voucher is used for recording the actual stock which is verified or counted. It could
happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds
a discrepancy between actual stock and computer stock figure.
Physical vouchers will be useful for recording purposes only if you have configured inventory vouchers to
ignore physical stock differences. If you have configured the vouchers so that physical stock difference is not
ignored, then all transactions subsequent to the physical stock voucher will use the balance as mentioned in
that voucher
To view the Physical Stock Voucher,
Go to Gateway of Tally > Inventory Vouchers
1.
Select the button F10: Phys Stk from Button Bar or press Alt+F10.
Date
Enter the stock taking date.
Name of Item
Select the name of the item from the List of items, for which physical stocks need to be recorded.
Godowns
Select the Godown (Godown will appear only if, Maintain multiple Godowns is activated in F11:Features
:F2:Inventory Features), in which the Physical Stock taking was conducted.
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Batch / Lot No
Select the Batch number (Batch details will appear only if, Batch wise details are activated in
the Stock Item Master screen) for which the Physical Stock quantity is to be recorded.
Quantity
Enter the Physical Stock quantity
Note: Physi cal Stock quanti ty w il l be di spl aye d as Actual Stock in the Stock Summary
from the date of e ntry of the Physi cal Stock.
Optional and Non Accounting Vouchers in Tally.ERP 9
The Non Accounting/Unconventional Vouchers are the special vouchers that are used to record
provisional or non-accounting transactions. Unconventional vouchers are mainly used to exclude
unnecessary entries or provisional entries from the books of accounts and make them available for what if
(future reports, projections, forecasts etc.) reports required at any given time.
Predefined Non Accounting Vouchers in Tally.ERP 9
Tally.ERP 9 comprises of the following predefined Non-Accounting Vouchers, to suit different business
requirements for recording various transactions. Tally.ERP 9 also allows you to create user-defined Vouchers
(Voucher Types) as per your requirements.
The pre-defined Non Accounting Vouchers are:

Memorandum Voucher

Reversing Journal
Along with the above mentioned voucher
Dated and Optional for other voucher types.
types,
there
are
two
options
available
namely Post
Memorandum Voucher
This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts. In
other words, Tally.ERP 9 does not post these entries to ledgers, but stores them in a separate Memorandum
Register. You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the
entry into your books.
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Some of the uses of Memorandum Vouchers are:
Making suspense payments
Consider that a company gives its employees cash to buy office supplies, the exact nature and cost of which
are unknown. For this transaction you can enter a voucher for the petty cash advance, a voucher to record
the actual expenditure details when they are known, and another voucher to record the return of surplus
cash.
However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and then turn it
into a Payment voucher for the actual amount spent, when the details are known.
Consider the following Example:
The Company pays its employee Rs. 1000 as petty cash advance for Office Expenses.
The following entry has to be passed.
To use Memorandum voucher, Enable the following option from F11: Accounting Features

Use Reversing Journals & Optional Vouchers
Go to Gateway of Tally > Accounting Vouchers > Select Ctrl+F10: Memos from the Button Bar or
click Ctrl+F10.
1.
Debit Office Supplies Account
2.
Credit Cash Account
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Vouchers not verified at the time of entry
If there is no clarity with the details of a voucher you are entering, you can enter it as a Memo voucher and
amend it later when the details are available.
Items given for approval
Generally completed sales are entered into books. In case items are given on approval, use a Memo voucher
to track and convert it into a proper Sales voucher. You can cancel/delete the memo voucher if the sale is
not made.
Memorandum Voucher Register
To view all the memorandum vouchers:
Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers.
Note: You can al so vi ew me morandum vouche rs from the D ay Book.
You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into
your books. Use Scenarios to see the effect of Memo entries on reports and statements.
Reversing Journals
Reversing Journals are special journals that are automatically reversed after a specified date. They exist
only till that date and are effective only when they are included in reports. These are used in interim
reporting in the course of the financial year where accruals are to be reported. These accruals are usually
short term and are cleared in the subsequent period. However, to get a proper perspective, decision makers
require the reports with full impact of all aspects and transactions.
To activate Reversing Journals,
Go to Gateway of Tally
1.
Select F11: F1: Accounting Feature
2.
Set Use Reversing Journals & Optional Vouchers? to Yes.
3.
Accept the screen to save.
You may use reversion journal for accounting for or providing for depreciation. Since, depreciation is usually
provided during at the end of the year, using the Reversing journal you may include them for monthly
reporting or a specific period to give more accurate status or position.
Let us take an example:
On 30th June you want to view the Balance Sheet but June month�s rent is not been paid. You may create
a Scenario (refer Scenario Management for more information) and pass a Reversing Journal entry to view
the reports which will be effective up to the applicable date. When you view the Balance Sheet, Tally.ERP 9
displays the report with the reversing journals included. The voucher affects the report only for that day,
30th June.
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Applicable up to
The reversing Journal is available for inclusion in a scenario report till this date. The Reversing Journal can
be created as of a particular date and made Applicable up to a different date.
Reversing Journal Register
All vouchers are maintained in a Reversing Journal Register. These are not posted to any books of accounts
and cannot be included in regular reports. They can only be seen using a scenario.
Go to Gateway of Tally> Display> Exception Reports> Reversing Journals
Post Dated Vouchers
While entering vouchers, you can mark them as post dated, as a result these vouchers are not updated in
the ledgers till the date specified in the voucher. This is useful for entering transactions that take place on a
regular basis. For example, if you issue post dated Cheques towards payment of installments, you can set
up the payments in advance, and Tally.ERP 9 will only update them in the ledgers on the due date.
Mark vouchers Post Dated by using CTRL + T or click on the button Post dated from the Button Bar. This
button toggles between Current and Post Dated.
Post-dated Vouchers Register
All Post-dated vouchers are maintained in Post-dated voucher Register.
Go to Gateway of Tally> Display> Exception Reports> Post-Dated Vouchers
Difference in the treatment of Post-dated Vouchers and other Unconventional Vouchers
The major difference between post dated vouchers and other Unconventional vouchers is that post dated
Vouchers affect regular books of accounts on the date of the voucher. Post-dated vouchers are not available
for selection in Scenarios.
Order Processing in Tally.ERP 9
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Order Processing in Tally.ERP 9 can be classified into Purchase/Sales Order Processing and Job Order
Processing.
Purchase / Sales Order Processing
Purchase Order Processing is the process of placing orders with suppliers for a purchase to be made from
them and Sales Order Processing is the process of receiving orders from customers for the purpose of
selling. Usually, companies need to track the Order details for Sales and Purchases as this significantly helps
in planning the production process accordingly.
In Tally.ERP 9, Order Processing is linked to Inventory. This allows tracking of the order position for a Stock
Item. Using this you can track the arrival of goods ordered and whether the ordered Stock Item are
delivered on time etc.
Job Order Processing
Job Order Processing is the process of taking an order to manufacture or process goods as per the
prescription of the client by utilising the material supplied by the client or purchased on behalf of the client
and charging him for the services provided as Job Work or Sub Contract.
Tally.ERP 9 allows to process the job work taken from a client as well as job work given to job workers. It
also allows the principal company to track the materials despatched to job workers and materials received
against the job given, and vice versa.
Purchase Order
Purchase Order is an order placed by a business entity with a supplier for the delivery of specified goods at
a given price and at a predetermined time.
Sales order
Sales Order is an order placed by a customer for the delivery of specified goods at a given price and at a
predetermined time.
Job Order
Job Order can be classified into Job Work Out Order and Job Work In Order.
Job Work Out Order
Job Work Out Order is an order placed by the principal to manufacture or process goods as per the
prescription given to the job worker.
Job Work In Order
Job Work In Order is an order received by the job worker to manufacture or process goods as per the
prescription given by the principal.
Enabling Order Processing
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To enable Purchase Order, Sales Order and Job Order Processing in Tally.ERP 9, activate the following
in F11: Features (F2: Inventory Features)
Set Allow Purchase Order Processing, Allow
Processing to Yes in the Order Processing section.
Sales
Order
Processing and Job
Order
Note: Whe n Al l ow Job O rder Processi ng i s se t to Yes, the opti ons Mai ntain Mul ti pl e
Godowns and Use Material In/O ut get e nabl e d automati cal l y.
Purchase Order Processing
When the order is placed with the suppliers for the supply of goods, the Items, quantities, date of receipt
etc., details are given with the Purchase Order Number. Later, when these goods are received,
the Purchase Order is tracked for the Order Details either in the receipt note or in the purchase Invoice.
The Outstanding Purchase Order reports are available in Tally.ERP 9. It is possible to know the order
position of any item in the Stock Summary. Separate Purchase Order Outstanding report and Purchase
Order Summary report are also available.
Creating a Purchase Order
To create a Purchase Order,
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Go to Gateway of Tally > Inventory Vouchers > press Alt + F4 or click on Purc Order
Party's A/c Name
Select the Supplier�s name from the List of Ledger Accounts. Use Alt + C to create a new account.
Order No
Enter the purchase order number under Order No column
Name of the Item
Select the Stock Item that needs to be purchased from the List of Stock Items. The Item
Allocations sub-screen is displayed. Enter the details as shown.
Due on
Enter the due date for receipt of the items. This monitors outstanding receipts.
If orders are split for different dates, then specify the due date for the first lot to be received, after selecting
the quantity, rate and amount; specify the due date for the second lot and so on. After specifying the due
dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
Note: Godown/ Locati on fi e l d wil l appear, i f mul tipl e -l ocati on feature i s enabl e d
i n F11:Features ( F2: Inventory Fe ature s) .
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Quantity, Rate and Amount
Enter the quantity of the item required and its rate. The amount will be calculated automatically. Accept to
save.
Narration
This field is optional. Enter the required particulars concerning the order.
Altering and Deleting a Purchase Order
To alter a Purchase Order,
Go to Gateway of Tally > Display > Day Book
Or
Go to Gateway of Tally > Display > Inventory Books > Purchase Orders Book
Make the necessary alterations and save.
Deleting a Purchase Order
To delete a Purchase Order, press Alt + D in the Purchase Order alteration screen.
Sales Order Processing
When the order is received from a customer for goods to be supplied, the Items, quantities, date of delivery,
etc., details are given with Sales Order Number. Later when these goods are delivered, this Sales Order is
tracked for the order Details either in the delivery note or in the sales invoice.
The Outstanding Sales Order reports are available in Tally.ERP 9. It is possible to know the order position of
any item in the Stock Summary. Separate Sales Order Outstanding report and Sales Order Summary report
are also available.
Creating a Sales Order
Sales order entry is exactly like the Purchase Order Entry.
configuration settings.
Sales Order details will also depend on
To create a Sales Order,
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Go to Gateway of Tally > Inventory Vouchers > press Alt + F5 or click on Sales Order
Party's A/c Name
Select the Customer�s name from the List of Ledger Accounts. Press Alt + C to create a new account.
Order No
The Order number is automatically displayed. By default it will take the Voucher number as Order No. You
can change this number if required.
You can also configure the voucher type for Sales Order, to get the Suffix and Prefix for the sales orders.
(Go to Gateway of Tally > Accounts Info / Inventory Info > Voucher Types > Alter > Sales order
> Set Yes toUse Advance Configuration).
For more details on Advance Configuration refer to Use Advance Configuration
Name of the Item
Select the Item for which the order is to be placed from the List of Stock Items. The Item
Allocations sub-screen is displayed as shown.
Enter the details as shown.
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Due on
Enter the due date for the Delivery of the items. This monitors outstanding Delivery of the items.
If orders are split for different dates, then specify the due date for the first lot to be received. After selecting
the quantity, rate and amount; specify the due date for the second lot and so on. After specifying the due
dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
Note: Godown/ Locati on fi e l d wil l appear, i f mul tipl e -l ocati on feature i s enabl e d
i n F11:Features ( F2: Inventory Fe ature s) .
Quantity, Rate and Amount
Enter the quantity of the item and its rate. The amount will be calculated automatically.
Narration
This field is optional. You can give some particulars about the order.
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Altering and Deleting a Sales Order
To alter a Sales Order,
Go to Gateway of Tally > Display > Day Book
Or
Go to Gateway of Tally > Display > Inventory Books > Sales Orders Book
Make the necessary alterations and save.
Deleting a Sales Order
To delete a Sales order, press Alt + D in the Sales Order alteration screen.
Job Order Processing
Job Work Out Order
When the principal company intents to manufacture or process goods, raises a Job Work Out Order on Job
Worker to process the order. The Job Work Out order contains the Ordered Item, Quantity, Rate and the
Amount. It allows to define the BoM for the ordered item. It also contains the despatch details, the process
instruction with regard to duration and nature of process along with the Job Work Out Order Number.
Tally.ERP 9 allows the principal company to have track of raw materials sent and finished/processed
materials received. It provides reports on Orders/Components Outstandings, Material Movements, Stock
availability with Job Workers, Stock ageing analysis and Analysis on Job Work such as Issue and Receipt
Variance.
To enable Job Order Processing refer Enabling Order Processing in Tally.ERP 9.
Job Work In Order
When the job worker receives an order from the principal company to manufacture or process goods, raises
a Job Work In Order on the Job Order received. The Job Work In order contains the Ordered Item, Quantity,
Rate and the Amount. It allows to define the BoM for the ordered item. It also contains the despatch details,
the process instruction with regard to duration and nature of process along with the Job Work In Order
Number.
Tally.ERP 9 allows the job worker have track of raw materials received and finished/processed materials
sent. It provides reports on Orders/Components Oustandings, Material Movements, Stock availability with
Job Workers, Stock ageing analysis and Analysis on Job Work such as Issue and Receipt Variance.
Creating a Job Work Out Order
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This voucher allows the principal company to raise Job Orders on Job Worker.
Creating a Job Work Out Order
Altering and Deleting a Job Work Out Order
Creating a Job Work Out Order
To create a Job Work Out Order,
Go to Gateway of Tally > Order Vouchers > press Alt + J or click on J: Job Work Out Order.
Party's A/c Name
Select the Supplier�s (Job Worker) name from the List of Ledger Accounts. Use Alt + C to create a new
account.
The Party Details screen is displayed. Provide the details as shown.
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Order No
Enter the Job Work Out Order Number under Order No column.
Name of the Item
Select the Stock Item for which order is placed, from the List of Stock Items. The Item Allocations subscreen is displayed. Enter the details as shown.
Track Components
Set the option to Yes if components need to be tracked.
Due On
Enter the due date for receipt of the items. This monitors outstanding receipts.
If orders are split for different dates, then specify the due date for the first lot to be received, after selecting
the quantity, rate and amount; specify the due date for the second lot and so on. After specifying the due
dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
Godown
Select the required Godown from the list.
Note: The Godown sel ecte d i n Item Al l ocati on shoul d not be e nabl e d wi th opti ons Our
Stock wi th Thi rd Party and Thi rd Party Stock wi th us i n Godow n maste rs.
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Quantity, Rate and Amount
Enter the ordered quantity of the item and its rate. The amount will be calculated automatically.
In case Track Component is set
the Quantity is entered, as shown:
to Yes,
the Component
Allocation screen
is
displayed
when
Note: The C om ponents All ocati on di spl ays the l ist of compone nts spe ci fi e d i n
the O rdered Item master.

Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
For more details on F12 configuration refer
Invoice / Order Entry
Altering and Deleting a Job Work Out Order
To alter a Job Work Out Order,
Go to Gateway of Tally > Display > Day Book
Or
Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Job Work Out
Orders Book
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Make the necessary alterations and save.
Deleting a Job Work Out Order
To delete a Job Work Out Order, press Alt + D in the Job Work Out Order alteration screen.
Creating a Job Work In Order
This voucher allows the Job Worker to raise receipt of Job Order from the Principal Company.
Creating a Job Work In Order
Altering and Deleting a Job Work In Order
Creating a Job Work In Order
To create a Job Work In Order,
Go to Gateway of Tally > Order Vouchers > press Alt + W or click on W: Job Work In Order.
Party's A/c Name
Select the Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt + C to create
a new account.
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The Party Details screen is displayed. Provide the details as shown in Job Work Out Order.
Order No
Enter the Job Work In Order Number under Order No column.
Name of the Item
Select the Stock Item for which order is received, from
Allocations sub-screen is displayed. Enter the details as shown.
the List
of
Stock
Items.
The Item
Due On
Enter the due date for delivery of the items. This monitors outstanding deliverables.
If orders are split for different dates, then specify the due date for the first lot to be delivered, after
selecting the quantity, rate and amount; specify the due date for the second lot and so on. After specifying
the due dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
Godown
Select the required Godown from the list.
Note: The Godown sel ecte d shoul d not be enable d w i th opti ons O ur Stock with Thi rd
Party and Thi rd Party Stock wi th us i n Godown maste rs.
Quantity, Rate and Amount
Enter the ordered quantity of the item.
In case Track Component is set
the Quantity is entered, as shown:
to Yes,
the Component
Allocation screen
is
displayed
when
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Note: The C om ponents All ocati on di spl ays the l ist of compone nts spe ci fi e d i n
the O rdered Item master.

Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
For more details on F12 configuration refer
Invoice / Order Entry
Altering and Deleting a Job Work In Order
To alter a Job Work In Order,
Go to Gateway of Tally > Display > Day Book
Or
Go to Gateway of Tally > Display > Job Work In Reports > Job Work Registers > Job Work In
Orders Book
Make the necessary alterations and save.
Deleting a Job Work In Order
To delete a Job Work In Order, press Alt + D in the Job Work In Order alteration screen.
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Viewing Order Position
To view the order position in Stock Summary,
Go to Gateway of Tally > Stock Summary

Press Alt + F1 (For detailed view)

Press Alt + N > Select Orders & Stock Details
Orders & Stock Details screen is displayed as shown.
Or

In the Stock Summary screen, you can add a new column using Alt + C.
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Sales Order Reports can be accessed through Alt + F7 or Alt + C of the Stock Summary.
Viewing Purchase or Sales Order Outstanding
Go to Gateway of Tally > Stock Summary > Press F9 > select Purchase or Sales Order
Note: Inventory Reports and Accounti ng Reports can al so be acce sse d
through ALL othe r re ports by pre ssi ng F9 or F10 (Accounti ng/ Inventory Reports) .
Creating a Job Work In Order
This voucher allows the Job Worker to raise receipt of Job Order from the Principal Company.
Creating a Job Work In Order
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Altering and Deleting a Job Work In Order
Creating a Job Work In Order
To create a Job Work In Order,
Go to Gateway of Tally > Order Vouchers > press Alt + W or click on W: Job Work In Order.
Party's A/c Name
Select the Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt + C to create
a new account.
The Party Details screen is displayed. Provide the details as shown in Job Work Out Order.
Order No
Enter the Job Work In Order Number under Order No column.
Name of the Item
Select the Stock Item for which order is received, from
Allocations sub-screen is displayed. Enter the details as shown.
the List
of
Stock
Items.
The Item
Due On
Enter the due date for delivery of the items. This monitors outstanding deliverables.
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If orders are split for different dates, then specify the due date for the first lot to be delivered, after
selecting the quantity, rate and amount; specify the due date for the second lot and so on. After specifying
the due dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
Godown
Select the required Godown from the list.
Note: The Godown sel ecte d shoul d not be enable d w i th opti ons O ur Stock with Thi rd
Party and Thi rd Party Stock wi th us i n Godown maste rs.
Quantity, Rate and Amount
Enter the ordered quantity of the item.
In case Track Component is set
the Quantity is entered, as shown:
to Yes,
the Component
Allocation screen
is
displayed
when
Note: The C om ponents All ocati on di spl ays the l ist of compone nts spe ci fi e d i n
the O rdered Item master.

Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
For more details on F12 configuration refer
Invoice / Order Entry
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Altering and Deleting a Job Work In Order
To alter a Job Work In Order,
Go to Gateway of Tally > Display > Day Book
Or
Go to Gateway of Tally > Display > Job Work In Reports > Job Work Registers > Job Work In
Orders Book
Make the necessary alterations and save.
Deleting a Job Work In Order
To delete a Job Work In Order, press Alt + D in the Job Work In Order alteration screen.
Viewing Order Position
To view the order position in Stock Summary,
Go to Gateway of Tally > Stock Summary

Press Alt + F1 (For detailed view)

Press Alt + N > Select Orders & Stock Details
Orders & Stock Details screen is displayed as shown.
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Or

In the Stock Summary screen, you can add a new column using Alt + C.

Sales Order Reports can be accessed through Alt + F7 or Alt + C of the Stock Summary.
Viewing Purchase or Sales Order Outstanding
Go to Gateway of Tally > Stock Summary > Press F9 > select Purchase or Sales Order
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Note: Inventory Reports and Accounti ng Reports can al so be acce sse d
through ALL othe r re ports by pre ssi ng F9 or F10 (Accounti ng/ Inventory Reports) .
Advanced Voucher Entry in Tally.ERP 9
Advanced usage in voucher entry involves using more features of Tally.ERP 9. This would mean entering of
data in various pop-up and sub-screens depending on the context and configuration (both F12 and F11)
settings.
Using Additional Cost of Purchase
In many situations, more than one item is purchased where the expense incurred is charged as a lump-sum
amount. However, to give an effective cost including the expense to each of the items, additional costs of
purchase option is used. This process is automated and allocation of the expense to stock item can be done
on a predefined basis.
Note: The se e xpe nses poste d usi ng Addi ti onal cost on Purchase fe ature s, do not affe ct
the rel e vant nomi nal le dger accounts but update the cost of the Stock Ite m, i .e ., the
addi ti onal costs i ncurre d are update d wi thout actual ly affe cti ng accounti ng, only the stock
val ue goe s up.
Enabling Additional Costs of Purchase
In F11: Features (F2: Inventory Features) under Purchase Management, set Track additional costs
of Purchase to Yes.
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The additional costs/ expenses incurred can be allocated to each item based on:

Quantity
or

Value
The following set-up activity is required to appropriate the additional costs:

Alter the Parent Group of the expense ledger accounts, e.g. Indirect Expenses. (Go to Gateway
of Tally > Accounting Info > Groups >Alter > Direct Expenses).

You will find a new option - Method to Allocate when used in Purchase Invoice.

If you want to appropriate the ledger accounts under this group to stock items either by
Quantity or value, you must select the respective option. For ex: Select Appropriation by Qty.
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Note: To ge t the opti on Method to Al l ocate when used i n Purchase Invoi ce ,
Enable Enter Purchases in Invoi ce in F11: Features (F1: Accounti ng Features)
Creating Purchase Entry
Purchase entry in As Voucher mode: The additional cost details have to be filled in after the allocation of
each purchase item.
While creating the Purchase Voucher, once after giving the Quantity and Rate in the Inventory
Allocations, press Enter button on the Amount column, Additional Cost Details screen will be
displayed.
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Type of Cost
Select the expense ledger from the List of ledgers Accounts.
% age
Additional costs can be entered in terms of percentage also. For example, 1%, 2% etc. You can also skip the
percentage field to enter the amount directly.
Amount
You can enter the amount of additional cost directly or if the percentage is entered, then amount will be
calculated automatically.
Note: If the re are tw o or m ore i te ms, the n for i te ms, the �Addi ti onal Cost De tai ls� scree n
w il l be di spl aye d.
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Purchase entry in As Invoice mode: The treatment of additional costs on stock items is automated.
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Report on Additional Cost Details
The reports on appropriation of additional costs/ expenses can be viewed in the Stock Summary.
Go to Gateway of Tally > Stock Summary
Let us consider as an example, the appropriation calculation for Item A.
Total of Expenses ledger
Total of no of quantities
=
Rs. 200
=
30
Number of quantities of Item A =
10
200 / 30 * 10
=
66.66
Total amount + additional charges
1000 + 66.66 = 1066.67/-
Using Inventory Allocations
In the Ledger masters for which the option Inventory Values are affected is set to Yes, the Inventory
details needs to be allocated in the voucher entry for these ledgers. When you enter a voucher (usually a
Sales or a Purchase Voucher) a sub-screen is displayed on the selection of the ledger, wherein you have to
enter inventory item details.
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The inventory details that you give in an accounting voucher (like Sales and Purchase Voucher) affect stocks
immediately.
Note: Stocks w i ll be affe cte d onl y i f Tracki ng Numbers are not use d or tracked i n the
sale s or purchase i nvoi ce s.
The information that you need to give in the inventory allocation sub-screen depends on the features
enabled for the company.
An inventory allocation sub-screen is displayed as shown.
Name of Item
Select the item from the List of Items or Press Alt + C to create the items.
Quantity, Rate and Amount
Enter the Quantity and Rate of the item and the Amount will be calculated automatically.
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Per
The Unit of measure specified, will appear by default here. The Rate is computed on the basis of Unit you
specify here.
Using Tracking Number
A Tracking number is the reference to have a link between transactions. For example, if Tracking Number
is selected in the Delivery Note, this will help you to automatically display the details of the items in the
Sales Invoice.
The tracking number pop-up list appears after you have entered the name of the item.
Note: To ge t the Tracki ng numbe r i n the Ite m All ocati on scree n, enable Use Tracki ng
Num bers (Del i very/Recei pt Notes) i n F11: Features > F2: Inventory Features.
A default list will contain the following.
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Tracking No: 01 - When the tracking number (01) is given in the delivery note and when you track this
from List of Tracking Numbers in the sales invoice; the quantity, rate and amount will be displayed
automatically.
New number � Enter a new number, if the tracking number is other than the default tracking number
available in the List of Tracking Numbers.
Example:
You can create a Sales bill first and then later deliver the goods. In order to track the bills with the relevant
delivery challan, a New Tracking Number is used.
Not applicable � If you do not want a tracking number, then select Not Applicable.
This may be used in cases where you want to update stocks immediately, when Goods are received or
delivered directly without receipt note or delivery note.
Example:
When you send out samples for approval and you do not want to raise delivery note. Likewise when you
receive samples but no receipt note is raised.
Trouble Shooting Sales and Purchase Voucher
In companies using Accounts-with-Inventory, where Tracking Numbers is NOT activated, you do not get the
voucher types Receipt Note and Delivery Note in the Sales and Purchase Voucher sub-menus.
The inventory details that you mention in an accounting voucher (like Sales and Purchase Voucher), affect
stocks by immediately updating them, only if Tracking Numbers is not activated in F11:(F2:Inventory
Features).
The option Inventory Values are Affected should be set to Yes in Sales and Purchase ledger accounts
(Masters). Unless this option is set to Yes in the Ledger creation screen, it is not possible to make a Sales
entry or a Purchase entry.
The information that you need to give in the inventory allocation sub-screen depends upon the features
enabled for the company.
Using Zero Valued Entries
Zero Valued entries are those entries where a voucher entry is made without any values, i.e., one of the
parameters (Qty or Rate) may not have a value but needs to updated in the records.
Example:
Zero-rated VAT or Exempt from Tax Account. You are permitted to make such an entry. The Exempt Ledger
account can be viewed for all Exempt Sales.

The items which are given as Free Samples.
Note: Ze ro Val ue d e ntrie s are all owe d onl y i n Sale s and Purchase vouche rs onl y and ar e not
avai lable i n Re cei pt, Payme nt vouche rs and journal vouche rs.
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Enabling Zero Value entry
Enabling Allow Zero valued entries in F11: Feature: F1:Accounting Features/ F2: Inventory
Features.
Example: Create a Sales invoice with Zero Value entry.
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In the above Snap shot you can make out that, if Item A is purchased, then Item B is free.
Even if the values are not mentioned, the quantities of Item B will be reduced from the stocks.
Using different Actual and Billed Quantities
Sometimes, the goods purchased or sold may have difference in the Actual and the Billed quantities due
to the following reasons:

Free scheme

Rejected by the customer for defective quality

Rounding off of the billing quantity (for e.g., in Textile industries, Cloth measuring 150.50 mtrs
is actually delivered but bill is made for 150 mtrs)
Recording of Actual Quanties and the Billed Quanties are essential to get the accurate stock values and
sale/purchase value i.e., the Books of Accounts should be updated with the Billed quantities and Stocks has
to be updated only with the Actual Quantities. Tally.ERP 9 allows you to record both these in different fields
i.e., Billed and Actual Quantity separately in the same invoice.
Note: The Actual Quantity update s stock and the Bil l ed Q uanti ty affe cts the accounts and
thus show s the correct posi ti on of both Accounts as we ll as Inve ntory.
Set the option Use different Actual and Billed Qty to Yes in F11:Features:F2:Inventory Features.
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Purchase or Sales vouchers with Actual and Billed quantity will appear as shown.
In the screen shown above, there are two columns under Quantity:

Actual
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Billed
Once when quantities are entered under Actual and Billed, stocks will be reduced to the extent of Actual
quantities only.
Example:
A company gives 2 items free as a sample to the customer, when 10 items are purchased. Then
under Actual qty column 10 numbers will be entered and under Billed quantity 8 numbers will be entered.
In the stock summary 10 numbers will be shown under Outwards.
Using Batch-wise Details
When you wish to maintain batch information for Stock Items, you need to set the option Maintain
Batch-wise Details to Yes in F11: Features (F2:Inventory Features).
In the Item Allocation screen, set the option Maintain in Batches to Yes.
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When you set this to Yes, you will find the following in the Item Allocation screen.
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Godown
Select the Godown from the List of Godowns.
Batch / lot No.
Select the Batch number from the list of existing Batch numbers which will be displayed under List of
Active Batches else click on New Number to give the new Batch number.
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Quantity, Rate and Amount
Enter the quantity and rate. The Amount will be calculated automatically.
Per
By default, the specified Unit of measure will be displayed here. The Rate is computed on the basis of Unit
you specify here.
Using Mfg. and Expiry Dates
Usually, Pharmaceutical companies, chemical industries etc., need to maintain their stock items with
manufacturing dates and expiry dates. In Tally.ERP, you can maintain Batches with Mfg
(Manufacturing) and Expiry dates.
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Enabling Mfg. & Expiry Dates
Set Maintain Batch-Wise Details and Set Expiry Dates for Batches to Yes in F11: Features > F2:
Inventory Features.
In the Item Allocation screen, set Maintain in Batches, Track Date of Mfg and Use expiry dates to Yes.
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When you set this to Yes, you will see the following in the Item Allocation screen.
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Godown
Select the Godown from the List of Godowns.
Batch / lot No.
Select the Batch number from the list of existing Batch numbers which will be displayed under List of
Active Batches else click on New Number to give a new Batch number.
Quantity, Rate and Amount
Enter the quantity and rate. The Amount will be calculated automatically.
Per
By default, the specified Unit of measure will be displayed here. The Rate is computed on the basis of Unit
you specify here.
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Mfg. Date
Enter the date of manufacture (This appears only if it is activated.). The date of manufacturing of the
product needs to enter here. This enables you to set the expiry date for the batch as a period from the date
of manufacture such as �three months from the date of manufacture�.
Expires on
Give the date of expiry (It will be displayed only if it is activated).
Using Cost Categories and Cost Centres
Cost Centers can be allocated in the vouchers. Activate Cost Centre for the Ledger Accounts that are used
in voucher entry.
Note: Acti vate Mai ntai n Cost Centers and More than one payroll / Cost
C ategory i n F11:Features > F1:Accounti ng Features .
Applying Cost Centres to Ledger Accounts
Example: enable Cost Center for Payment ledger � conveyance account.
Go to Gateway of Tally > Accounts Info > Ledgers > Create/Alter
Set Cost Centres are Applicable to Yes.
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Cost Centre Allocation in Voucher Entry
Cost Centre allocations have to be done in the pop-up sub-screens in the main voucher entry screen. The
sub-screen is displayed after the amount fields pertaining to the ledger for which cost centers have been
activated. Hence, the following is the sub-screen for the ledger Conveyance A/c.
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The entire objective of creating Cost Centres is to allocate expenses and revenues to Cost Centres.
After allocating the Cost Centers, the payment voucher entry screen is displayed as shown.
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Using Cost Centre Class
Each voucher now contains the Cost Centre/Classes option at its head. Select Not Applicable in case you
want to allocate manually. Select a cost Centre class to auto-allocate according to the predefined
percentages set in that class.
Let us examine this with two examples, a sales entry and a payment entry.
In sales, let us select Export as the Cost Centre Class.

Go to the Voucher Entry Screen

Select F8: Sales
You have the following options:
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Cost Centre Class
Select one of the classes created earlier, in this case Export.
Now enter the sales invoice. The cost centre allocation sub-screen will not be displayed but the allocation
will be done automatically.
After accepting the entry, check the cost centre displays to verify whether the allocation was done correctly.
Similarly, when you press F5: Payment, similar options are displayed. Select Marketing Expenses in that
case. The cost centre allocation sub-screen will not be displayed but the allocation will be done
automatically.
Use PgUp to check the entry in alteration mode. It will display the allocation in the voucher.
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Check the cost centre reports for allocation.
Note: You can combi ne Voucher Cl ass and Cost centre cl ass to maxi mi ze automati on.
Using Multi-Currency
Tally.ERP provides you with the facility of entering vouchers in any other currency (Foreign Currency) along
with base currency (specified during company creation), i.e., a voucher can be created with base currency or
with Multi- Currency.
Purchase voucher with Foreign Currency
Go to Gateway of Tally > Accounting Vouchers / Inventory Vouchers > Press F9: Purchase
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In the rate column, prefix or suffix a foreign currency Symbol and then enter the currency value, Tally.ERP 9
will automatically prompt you to enter the Rate of Exchange for Base Currency.
Advanced Accounting Features in Tally.ERP 9
Besides, the basic accounting capabilities, Tally.ERP 9 also comprises of advanced features for better
management and generation of advanced and MIS Reports. Some of advanced Inventory features in
Tally.ERP 9 features include:

Cost Centres

Cost Categories

Budgets

Interest Calculations

Cheque Printing

Multi Currencies

Credit Limits
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