Tally 7.2 1pn2p

TALLY INTRODUCTION Tally is an ing package developed by Tally Solutions pvt ltd which was formerly known as Peutronics pvt ltd. Where we record all ing transactions in a systematic process of • Company Creation • s creation and stock creations • Voucher Entry • Report Display Tally is India’s most popular ing software. Tally is the simplest, yet most powerful business management software to handle extended enterprise as well as the more traditional functions such as financial ing. Inventory management, sales, and purchase orders reporting etc. To take advantage of full potential of tally, the has to understand its features their implications and their implementation in the business scenario. Some of the features of Tally are discussed below. Golden Rules of ing:1. Personal : - s related to any person, firm etc. personal may be further classified as : • Natural persons:- Example- P Sen, A kumar etc. • Artificial persons:-Example- Companies and Organizations like A Kumar Ltd, New land Club etc. • Representative Person:-Outstanding salaries (representing employees), Prepaid rent (representing house owners), sales Tax, Excise duty (representing governments) etc. These s appear in Balance sheet. Debit: - The Receiver Credit: - The Giver 2. Real :- s where properties and possessions are recorded, like fixed and current assets.( Example: Cash, Building, Plant and Machinery, Vehicles These s appear in Balance sheet. Debit:- What comes in Credit:- What goes out 3. Nominal :- s relating to Expenses and Income, Losses and Gains. [Example: Sales, Purchase, Discount allowed, Discount Received, Repairs, Salaries, Interest paid , Depreciation etc] These s appear in Profit & Loss . Debit: - All expenses and Losses Credit: - All incomes and Gains

.FEATURES  Comprehensive ing system: - Tally is a complete and comprehensive ing system. It handles different types of vouchers e.g. payment, receipt, journals, debit notes, credit notes, sales, purchases, receipt notes, delivery notes, etc. Besides, all the primary books of s like cash book, bank book, ledger s, like purchase, sales, and journal s, statements of like balance sheet, profit and loss a/c, cash flow statements, funds flow statements etc. can be generated in Tally.  Flexible classifications of s: - Tally by default, creates 28 predefined groups (15 primary and 13 secondary) as per mercantile ing convention. The nomenclature of any of these groups can be altered and further, any number of primary or sub- groups can be created as per requirements in a tree like structure groupings. Tally enables proper organization and classifications of s ledgers and groups in a versatile way.  s receivables and payables: - Tally provides complete bill wise information of amounts receivable from sundry debtors as well as payables to sundry creditors. Tally can track bills, bill history, payments and receipts, advances as well as on .  Date based reporting: - Tally allows s to select any report for a particular date or date range. In other words reports of transactions are generated for the selected date or period.  Columnar reports: - Tally provides columnar reports regarding transactions through the sales, purchase and journal s as well as ledgers and cash/ bank books.  Bank reconciliation: - Tally provides facility to enter clearing date of cheque to reconcile bank s with bank/ book statements.  Group Companies:- To get consolidated report of a group of companies, several companies can be placed under a group company, making it convenient to get consolidated reports for the group .  Provisional vouchers:- Tally provides certain voucher options to keep a transaction out of regular books of s namely memorandum, any vouchers marked as optional.  Cost center and cost category: - Cost centers and cost categories provide various means to allocate the amount for selected ledger s. Cost centers: - while s ledgers and groups provide information about the nature of transaction, it does not identify the departments or divisions involved with it. Cost centers give additional dimensions to the transactions. Cost centers may be any unit to which costs can be allocated e.g. Branches, Departments, Products, and Persons and so on.

Cost Category: - Some organizations may need to allocate in more than one dimension. If the requirement of allocation of cost center is more demanding, cost categories may be used. Cost categories allow many parallel sets of cost centers for allocation.  Flexible units of measure: - Different items could have different units of measure. Tally allows to define any number of units and to specify up to two units for each item. One as unit and the other as alternate unit.  Stock groups and stock items: - Like s ledgers, stock items take part in all inventory transactions. For better organizations of hundreds and thousands of stock items that may be stocked and traded in an organization, they may be arranged in stock groups. The relationship between stock item and stock group is similar to that of ledgers and s groups.  Stock transfer/ adjustments: - Tally provides stock journal voucher to move items from one godowns to another and also to make adjustments for errors due to ing.  Multiple godowns: - Tally enables the creation of multiple godowns and sub godowns that in turn enables separate valuation for each godown in a logical manner.  Batch wise / lot wise- including expiry dates:- Tally provides batch wise facilities for stock items, optionally manufacturing and expiry dates also which are essential for traders like pharmaceuticals, chemicals, food industries and industries dealing with perishable items.  Sales and purchase orders: - Tally provides the option for sales and purchases orders, generates outstanding and numerous other reports.  Tracking through receipt / delivery notes:- In many businesses, goods are dispatched first and invoices are sent later or vice versa. In such cases, stocks should not be updated along with s. Tally tracks such situation with the help of tracking numbers. In Tally receipt/ delivery notes update inventory but will not affect s. Tally tracks pending tracking documents and display in P &L as a part of purchases and sales as sales / purchase bills.  Rejection In and Rejection Out: - Tally provides separate voucher for sale / Purchase returns- rejection in for sales return and rejection out for purchase return. These entries update inventory immediately. They can be linked with credit notes for sales return and debit notes for purchase return through tracking number.  Security levels and s: - The security can define multiple levels of security , create and authorize s, assign s and specific task rights. istration will have full access and can set controls to other s.

TALLY SCREEN PRODUCT INFORMATION

CALCULATOR WORK AREA

CALCULATOR CALCULATOR BUTTONBAR Tally screen can be divided into the following four broad parts as depicted in the above figure:

1) Product info:- Tally screen consists of a top bar consisting of the product information such as :  Software version and release : Every time a new release of Tally is made, it is identified with a different release name. Information of such release is displayed in the product info field.  Single or Multi :- it displays the capability whether we can work with Tally on a single system or multiple systems simultaneously ( through networking)  System day, date and time: - the system day, date and time is displayed in product info area. 2) Button Bar: Buttons appearing in the button bar4 ( at the right of the screen) provide quick to different options. The active buttons are solid in colour and the inactive buttons are grayed. 3) Calculator: By default, calculator remains inactive. While working with Tally, at any moment calculator may be activated and used. Pressing Ctrl+ N can activate the calculator. 4) Work area: The work area at gateway is broadly separated into two sections. The right hand side contains the menu popup and the left hand side displays list of selected companies. The left hand side of the work area consists of :  Current period: the financial period with which the is working is displayed for reference. The financial period can be changed by clicking F2: period button or + Key.  Current Date: it is not the calendar date but the date the worked during the current period. Vouchers will have the same date as of current date. The current date can be changed by clicking F2: Date button or by pressing F2 key.  List of Selected companies: Name of all selected (loaded) companies with last date voucher entry is displayed here. If more than one company is selected, the active company is shown at top of list in bold face and others appear next in normal font. The right hand side of the screen consists of:  Gate way of tally menu: Primary choices of the menu are displayed. The menu options are dependant on selection / activation of options. It may be noted that the options that are inactive, are grayed. For example, upon selecting a company maintaining s only, inventory info and stock summary options will be grayed. For selection of a particular option, the highlighted character (appearing in red and uppercase) is to be pressed or the option has to be double clicked.  Company information menu: On loading Tally, by default, company info menu appears to select a company to be worked with, to shut a particular company or to quit.

F 11: Features

 Integrate s and Inventory: - When this option is activated in F11: Features automatically the opening stock and closing stock of the item pasted to profit and loss .  Allow Multi - currency: - If you wish to record transactions in foreign currency, you should set this option to Yes. On setting this feature to Yes, currency option would be available at s information menu and in ledger creation you can specify currency for the ledger. In case you do not need foreign currency option, you should respond No, that would keep s information menu and ledger creation screen.  Maintain Cost centers: - When this option is activated in F11 features automatically the cost center and cost category activated in the s information menu bar.  Maintain Multiple Godowns: - When this option is activated in F11 features automatically godown menus activated in the Inventory information menu bar.

 Use Debit or Credit note: - When this option is activated in F11: features automatically the Debit note (Purchase Return) and the Credit Note (Sales Return)

option is activated. When we use F7 key from the key board there are three options will come 1. Journal Voucher 2. Credit Note 3. Debit Note Your choose any one from this above option.  Use tracking Number: - When this option is activated on the F11: Features automatically the Delivery Note (goods out) and Receipt Note (Goods In) option is activated in the bar. Tracking number is the important link between the ing and Inventory details when the goods do not accompanied with invoice.  Maintain Bill wise Details:- When this option is activated in the F11: Features automatically the pending bill or New purchase bill will come when goods purchased on credit and also pending Bill will come on the screen when we payment the amount to sundry creditors on payment voucher. Also the pending sales bill or New sale bill will come when goods sales on credit and also the pending bill will come on the screen when we receive the amount from sundry debtors on Receipt voucher. There are 4 types of References are there: 1. Advance:- Advance Bill 2. Against Reference:- Pending bill 3. New Reference:- New bill 4. On :- Normal A/C 

Maintain or use Batch Number:-(Use Expiry date):- When this option is activated on the F11 features automatically the Batch No, Mfg Date, Expiry Date will activate on the physical screen verification screen to give the details of the goods.

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Rejection Notes: - Challans are not available by default in Tally. You have to activate relevant options to get these vouchers. Respond Yes to the query Use Tracking Nos under F11: Features, to activate Challans (Delivery Note , Receipt Note) to get Rejection In and Rejection Out vouchers also respond yes to the subsequent query i.e. Use Rejection Notes. Allow Invoicing: - In invoice mode, value of item is auto-computed on the basis of entered quantity and rate. Tax and Additional charges are computed as per your specifications. Some additional options like Excise format, entering additional description for item name, separate buyer and consignee name etc are available in invoice mode only. If you want to enter in invoice mode also respond Yes if you respond No you will restricted to enter in Voucher mode only. If you opt for sales invoice, you get the following query asking whether you wish to enter purchase transactions in invoice mode also. Enter Purchases in Invoice format If you want to enter purchases Bills in Invoice mode also, respond Yes. Responding No will restrict to entry of purchase transactions in voucher mode only. Use Invoice Modes for Credit/ Debit Notes If you have responded yes to the queries Allow Invoicing and Use Debit / Credit Notes, you get these queries. To enter in invoice Format, respond yes.

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UNIT -1

SIMPLE ING CONTENTS:  Company creation  General ledger  Flexible classification of heads  Flexible voucher entry ( Receipt, Payment, Contra, Journal, Memo vouchers, Debit and credit notes)

 Bank Reconciliation Statement

UNIT- 1 COMPANY CREATION To creates a company select create company option from “company information” menu that brings the company creation screen. Company creation screen is divided into two sections. In the top section, information related to the company is entered and at the bottom section, information related to the base currency in which the s of the company would be maintained is entered. The contents of the company creation screen are explained with the help of the following figure. The contents of the company creation screen are explained below: Field name Currency symbol Name Mailing name

Maintain Financial year from Books beginning from

Address

Use security control Base Currency symbol

Income tax Number

Particulars Enter the name of the company. The maximum length of the name is 51 characters. By default, the name entered in the previous field is carried forward as the mailing name. this field cannot be left blank. Enter the address of the company. The maximum limit of the address field is 44 lines.

Local sales tax number

Inter state sales tax no

Enter the company’s income tax permanent number.

If the company is ed with the sales tax Authorities, enter the registration certificates number and date. This field is optional. If the company transacts with parties of other states and has been granted with sales tax registration, enter the registration certificate number here. This field is optional

The currency symbol entered in top section is displayed here for information that is treated as base currency by Tally. Formal Name Number of Decimal places Show amount in millions

Is symbol suffixed to amounts

Here the symbol of the currency in which the books of s for the company is to be maintained. Tally provides options to maintain 1. s only ,Inventory only ,s Cum Inventory Here the beginning date of the financial year is entered. Here the date from which the books of s actually begin is entered. This date can any date within 12 months from the date entered at financial year from. It is used to restrict unauthorized access to the compny’s data.

Here the formal Name of the currency is entered. Here the number of decimal places for the currency is entered. The minimum and maximum places of decimal are 0 and 4 respectively. Tally uses two formats to show large amounts separated by separators for better readability. Responding yes formats large amounts in millions while, responding no formats large amounts in lakhs. In many currencies, first symbol appears and then the amount US $ 1000 etc. However in some currencies symbol is the suffix e.g 1000yen. Responding yes would put symbol next to amount and No would put symbol before the amount.

On completing the information, Tally seeks confirmation to save the company profile by asking Accept? Yes or No. Responding yes would save the information and create

necessary folder and data files for the company and enables to work with the company. Responding No would move cursor to the name field for any modifications. Upon modifications, Ctrl+A may be pressed for saving the information to create a company.

Alternation of Company:- To modify information for any company, the option company info or F3 is to be selected. If more than one company is selected, a list of companies would be displayed for which the company profile is to be modified. On selection of a company, information entered in the company creation screen would appear. Here any information can be modified and saved by pressing < Ctrl> +

s creation: - One of the important tasks of ing is classifications is classification of transactions. Transactions are classified into ledgers. For better organization, ledgers are further compiled into groups under assets, liabilities, incomes and expenditures. Groups: - All ing heads are broadly classified into four entitiesLiabilities, Assets, income and expenditures. The ing groups are sub classifications of these four entities. For better organizations. Tally allows a flexible pattern of groups and sub groups.

GROUPS OF BALANCE SHEET : Capital ant: -this is a primary group that contains the capital and reserves and surplus of the company. Capital s may be directly placed under capital Group or a sub group may be created for them. Common examples of ledger s under capital group are share capital, partners capital s, proprietors capital ant drawings etc. The groups Reserves and surplus is a sub group to capital . All reserves s that are recognized as retained earnings are placed under this group. Common examples are general reserve, capital reserve, securities etc.  Loans: - All loans taken should be placed here. Reserved sub groups under this primary group are bank overdraft and cash credit (bank OD), secured loans and unsecured loans. Under the Bank OD a/c, all the bank overdraft and cash/ credit s availed under hypothecation, Bill discounting etc. are placed. Term loans and other medium / long term secured loans should be put under secured loans. Loans taken from banks, financial institutions etc. upon furnishing security against which normal day to day transactions are not permitted should be planned here. All

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the unsecured loans e.g. loans from outside parties, Directors, Parties, Friends and relatives to whom no security has been furnished should be placed under this group. Current Liabilities: - This group normally constitutes a large number of ledger s and sub groups. This primary group has been further sub divided into three reserved sub groups. Thy are 1. Duties and taxes: - All excise sales and other trade taxes come under this head. This head normally constitutes all the duties and /or taxes paid or collected through sales and purchase transactions e.g. Local sales tax, central sales tax (C.S.T). Excise duty etc. 2. Provisions: - Common examples of provisions are provision for income tax, provisions for bad debts etc. 3. Sundry creditors: - All the trade creditors of the company i.e. all the parties with whom credit purchase has been transacted should be placed under this head. 4. Current liabilities: - All such liability s that do not fall under any of the above three heads can be placed here e.g. outstanding liabilities for expenses , statutory liability like PF , TDS etc. Fixed Assets:- This head constitutes all the fixed assets, immovable properties, patents, trade rights etc. some common examples are land and building, plant and machinery, patents, copy rights etc. Investments: - Here all the s related to investments of the company in shares, bonds government securities and investments in other companies are placed. Current Assets:- It constitutes of six groups that are discussed as follows: 1. Stock in hand: - It consists of ledger s for raw materials, work in progress and finished goods. s failing under stock in hand group are not permitted any transactions. Thus, they cannot be included in any kind of voucher. The opening balance of these s gives the opening stock of the company while the value of closing stock gives the closing stock of the company. 2. Deposits:- Here all the deposits made by the company such as those in fixed deposits. Security deposits, deposits in other companies, rental deposits etc. are placed. It should however be noted that deposits received by the company should not be placed here. Instead, they should be placed under unsecured loans. 3. Loans and Advances:- All advances of non trading nature such as advances against salaries, loans to employees etc. come under this head. All sorts of loans given by the company should be placed here. 4. Sundry Debtors: - All the s of those parties who are normally the customers are placed under this head. For recording transactions, the system does not make any distinction between sundry debtors or creditors. They are interchangeable at any time allowing the to make purchase and sales transactions through the same . 5. Cash – in – hand: - A cash ledger is created by the system itself and placed under this group when a company is created. Any number of additional cash s like petty cash book etc can be created under this.

6. Bank s: - All the bank s like current s, savings s and other bank s except cash credit or overdraft should be placed here.  Suspense s: - This is a primary group that appears in balance sheet. It includes those entire suspense ledger to record money received or paid temporarily or whose nature of transactions is not yet known. For example advance paid for expenses details for which will be known upon submission of T.A. bills may be recorded in such ledger. Groups of profit and loss : groups of profit and loss are of revenue nature. These groups are further classified as direct income and direct expenses that come under gross profit computation and indirect income and indirect expenses coming under net profit computation. Some of the groups coming under P and L A/C are: Sales: - All sorts of sales whether cash sales or credit sales constitute this group. Separate s may be created for sales and sales and sales returns if any or may be combined in the same . The net effect in final s however remains the same. Purchase: - All sorts of trade purchases whether cash purchase or credit purchases constituent this group. Separate for purchases for purchases and purchases returns may be created that helps in proper identification of the amount and transactions relating to purchase returns or they may be combined in one . The net effect in final s however remains the same. Most often purchase bills include various other charges like freight, delivery charges etc which are finally ed for as purchases in the profit and loss . DIRECT INCOME: - This primary group is the place to hold all such ledger s for income that will be considered for computation of gross profit. Direct income refers to that revenue collected from normal course of business. INDIRECT INCOME: - Normally all non major revenue items that do not occur due to normal course of business such as rent, interest, dividend etc. should be placed here. These are not considered for the computation of gross profit but are considered for the computation of net profit only. DIRECT EXPENSES: - This primary group holds all ledger s of direct expenses. In case of traders, normally carriage inward should be placed under this group. All the expenses that occur in due course of business and that are considered for computing gross profit / loss are to be placed here. INDIRECT EXPENSES: - All expenses considered for computation of net profit / loss only should be placed here e.g. depreciation, istrative expenses, rent paid etc. Apart from the above mentioned pre defined reserved groups, any number of new groups can be created that may be primary or sub group to any existing group / sub group. All the 28 groups can be viewed by selecting the option Groups of the s information menu.

Ledger s:Ledger s are the entities under which transactions o similar nature are complied to get a consolidated view of all the transactions of similar nature and get the total or net balance for a certain period. These s can be created, displayed or altered by selecting the ledger option of s are salary , rent , wages, Furniture , Other fixed assets etc. Ledger Creation: - Ledger s can be created by selecting the create option under the option ledgers of the s information menu. The ledger creation screen appears as follows.

Flexible voucher entry: - Transactions are entered through voucher Entry. To enter voucher, the option voucher Entry is to be selected at the Gateway of Tally menu.

Types of vouchers: - In manual ing, all transactions are recorded in Primary Books that can be broadly categorized into cashbook and journal. For practical convenience, journal is sub – divided into following subsidiary books.

 Contra Voucher: - (F4) In contra voucher, those transactions are entered where only cash and bank s are involved. This may involve either cash deposit at bank or cash withdrawn from the bank. The debit and credit entries are made on the basis of the nature of transaction. If it involves a deposit, Bank a/c is to be debited and cash a/c is credited. Similarly, the reverse is done in case of withdrawal. The following figure depicts a contra voucher.

 Payment Voucher: - (F5) All t transactions related to payment (by cash or through bank) are recorded in payment voucher. Such payments may be towards purchase, expenses, acquisition of fixed assets, dues to creditor, loans and advances given or repayments of loans and advances taken earlier etc. The following figure depicts a Payment voucher.

 Receipt Voucher: - (F6) All inflow of money (in cash or through bank) is recorded through receipt voucher. Such receipts may be towards any income or from debtors or loans and advances taken or refund or loans and advances given earlier etc. here cash or bank a/c is debited and the ledger a/c from which cash / cheque is received is credited. Multiple entries may be made through one receipt voucher. The following figures depict a receipt voucher.

 Journal Voucher: - (F7) Journal voucher is an adjustment voucher used for noncash transaction like adjustments between ledger s, provisions for liabilities,

Income receivables, depreciation and all other provisions. Normally, Cash and bank s are not permitted to transact in journal voucher. The following figure depicts a Journal voucher.

 Debit Note: - By default, Debit note voucher would not be available. For making

it available, the option use Debit/ Credit notes under F11 : features has to be activated. This voucher can be selected by clicking either F7 : Journal or F9: Purchase buttons. Normally, a transactions is entered in this vouchers in case of purchase return, rate difference in bill, credit granted by supplier etc. The following figure depicts a Debit note voucher.

 Credit Note: - By default, Credit Note would not be available. The option use Debit / Credit Notes under Features menu has to be selected to make it available. This voucher can be selected by clicking F7: Journal or F9: Purchase Buttons. A credit note is generally used when a buyer returns some goods sold to him or a credit is granted to him due to rate difference or any rebate / discount is granted to him etc. The following figure depicts a Credit note voucher.

 Memo Voucher: - (F10) Memo voucher is a provisional voucher and the entries made using this voucher would not affect the s part i.e. Tally does not post these entries to ledgers but stores them in a separation Memo . These memo vouchers can be converted into regular voucher later when it is decided to bring entries into books of . They are used for application such as 1. Making suspense s. 2. Vouchers not verified at the time of entry. 3. Items given on approval. The list of memos can be obtained under Display – Exception Reports – Memorandum vouchers.

Bank Reconciliation:it is a statement prepared to compare company book with bankbooks. The business records all its banking transactions in its cash/ bank books. Whereas, the bank records all the transactions with its customers in its ledger s. In other words, we can say that ledger s maintained by the bank and cashbook prepared by the customer record the same transactions. It seems, therefore necessary that the bank balance being shown by both the cashbook and ledger s must be equal. Through cashbook prepared by the firm and the book maintained by the bank should show the same bank balance as both of them have been recording the same transaction. But in actual practice, it does not happen. The bank balance shown by cashbook and book are generally different. For this purpose, a statement is prepared which is known as bank reconcillation statement. Bank reconciliation statement is prepared with a view to find out the causes responsible for the difference between the balances of cashbook and book and to reconcile the balance. Causes responsible for the difference between the balances of Cashbook and book. Cheque issued or drawn but not yet presented for payment.  Cheque deposited but not yet credited or cleared.  Cheque directly deposited into bank by customer.  Interest collected or allowed or credited by bank.  Interest on overdraft or bank charges charged or debited by the bank.  Payments made by bank on the behalf of the company.  Omission of any transaction in the cashbook.

Procedure for the Preparation of BRS:1. 2. 3. 4.

Create a new Bank A/C. Enter the transactions in the respective voucher. Select the Cash / Bank books from the s Books menu of the Display menu. Select Bank A/C open the ledger of that bank and there. Click F5: Reconcile. Put the bank date (seeing the bank statement) to those transactions that appears in both the books. Those transactions that do not appear in both the books are to be left out. 5. Go to voucher entry. reverse entries to those transactions that appear in bankbook and not in company book. 6. Then again go to reconcile option and there, put data of the corresponding transactions and save. To see the detailed reconciled voucher, in the reconcile option, Press F 12 and set the options Format – Detailed and show reconciled vouchers to yes.

UNIT -2 SIMPLE INVENTORY / STOCK MANAGEMENT CONTENTS:       

Grouping and categorization items. Flexible units of measure. Flexible invoicing. Purchase Invoicing. Sales Invoices. Physical stock verification. Stock transfer voucher. Purchase return and sales return.

Unit-2

Simple inventory / stock management Grouping and categorization of stock items: Stock groups: - Inventory transactions involve hundreds of stock items. For better organizations of hundreds of stock items that may be stocked and traded by an organization. They may be organized into appropriate groups called stock groups. The relationship between stock item and stock group is similar to that of s Ledger and s Groups. It is to be noted that only stock items participate in any transactions and stock groups merely help to organize stock items.  Stock Categories: - Stock groups may be sufficient for more organization for managing the inventory reports in an organized manner. However, some organization may need an alternate way to find out items of similar nature. To help them, Tally allows a parallel method to organize the stock items in Stock Categories and retrieves reports accordingly. Stock categories provide flexibility in reporting.

 Units of Measure: - Normally an item is measure under some unit of measure. While creating master for a stock item, the unit of measure for the stock item should be specified. However, this can be skipped by selecting the option not applicable in case of service items. While creating a stock item, if the unit does

not exist, a new unit can be created by pressing < Alt> + . The units may be simple such as Pcs . Ltr, Mtr, Packets, each.  Stock Items: - Stock items are the actual items that are transacted and take part in any inventory voucher. Stock items are normally placed under stock Groups and stock categories.  Flexible Invoicing: - Each transaction is entered through voucher. In a voucher, first the ing entries are made followed by inventory allocation. In case of transactions entered in invoice mode, first the inventory particulars are entered and the transaction value is auto computed. ing entries are recorded later.  Purchase Invoice: - These are used for entering purchase transactions in invoice format. Here, firstly the inventory details regarding the item to be purchased, number of units to be purchased etc are entered for auto – computation of the purchase value. The following figures illustrates a purchase invoice.

 Sales Invoice:- This records sales transactions in invoice mode. Here , first inventory entries are made and the bill value is auto – computed. This is the normal way of making sales invoices. The following figure depicts a Sales invoice.

 Standard cost and selling Price: - This option appears if you have set Yes to the option Allow Standard Rates for stock Items under F12: Configuration/ Inventory masters. On responding yes to the query in the item master creation screen, a sub screen opens up to enter standard purchase and sales rates. During invoicing, these rates would become standard price list rates, i.e. while entering sales invoice, the applicable standard sale rates for the invoice date will be automatically picked up along with units. Similarly, while entering purchase invoice, the applicable standard purchase rate will automatically picked up along with units.

 Physical stock verification voucher:- Apart from the purchase and sale activities, the trader has to manage the stock and keep the stock s. For this purpose, he may be required to physically the stock and adjust the differences if any from time to time. For this purpose , he may be required to make physical stock entry.

 Purchase returns:-It is usually record all return of purchased goods. It is usually entered through a debit note.  Sales return: - It is used to record the return goods sold earlier. It is usually entered through credit notes.

UNIT-3 ADVANCED FINANCIAL AND STOCK MANAGEMENT CONTENTS: Cost center and profit center  Bill wise details for trading and non trading concerns.  Stock categories  Multiple warehouse / Locations  Batch wise / lot-wise including expiry date handling.  Sale and purchase order processing  Tracking through receipt notes , Delivery notes  Rejection inward / Rejection outward.

Unit-03

Advanced Financial and Stock Management Cost Center:- ledger s merely reveal the nature of the transaction. Cost centers allow to analyse a transaction in the other dimensions. This facility allows identifying cost involved with any component. A component can be an office, department, individual employee, project, job, process etc. it also enables to determine profit /loss for each such entity. Thus, cost centers can be termed as profit centers also. Like groups, cost centers can be nested to any level. The option helps to obtain:  Ledger wise figures  Office wise income / expenditures  Department wise income/ expenditure.

Cost centers is activated in s information menu if responded yes to the query maintain cost centers under F11: Features. Tally provides options to create, Display and Alter cost center. Creation of Cost center: - to create a cost center the option create under cost center option of s information menu is to be selected. Display of cost center: The existing cost centers can be viewed through the option of Display under cost center option of s info menu.

Alternation of Cost center:- on selecting the option Alter of cost center option of s information menu. List of cost center is displayed to select an existing cost center that is to be altered. Deletion of cost center:- Any cost center can be deleted by pressing + in the cost center alternation screen. A message Delete? Yes or No would appear seeking confirmation. The option Yes is to be clicked for deletion of the cost center. However a cost center cannot be deleted if that particular cost center has nested cost centers or the cost center has participated in any transaction. Bill wise details for trading and non trading concerns:- Normally the transactions with suppliers and customers are numerous and repeating. In most cases, credit is available for some period and payment becomes due after credit days. Payment is made when bill becomes overdue. Sometimes instead of making full payment of a bill, part payment is made or a lumpsum amount is paid against outstanding bills and then, the is settled periodically. In view of these complexities, it may not be sufficient to know just the ledger balance of such s rather; bill –wise balance of outstanding payments with bill wise break up may be needed. To get such finer details of the required ledger s, tally provides an additional feature termed as bill wise details. This feature can be activated under F11: Features menu. Advantages of Bill-wise details:Maintaining bill – wise details enables the to get: 1. Overdue bill status. 2. Bill –wise breakup of each voucher transaction. 3. Bill- wise details of history of transactions with the party. During voucher entry, when a transaction for a ledger is entered, an allocation screen is displayed to enter bill wise details as shown below. The pop – up consists of  Type of Ref  Name  Due date or credit days  Amount  Dr/ Cr

Type of reference:-

It refers to the type of adjustment. The different methods of adjustment displayed are: 1. New Ref:- When a new bill is entered ( sales or purchase voucher), it is treated as New Ref. The new reference is added to the list of outstanding. At the name field, the identity of the bill such as the bill number is entered. 2. Against Ref: - When any payment is received or made against any existing bill (already entered as New Ref.) or a bill is raised against earlier advance, it is entered as Against Reference that reduces the outstanding amount to the amount to the extent of the adjusted amount. At the name field, the bill reference is given either by selecting from the list of bills or by entering the bill number against which the current entry should be adjusted. 3. Advance:- When any receipt or payment is made as advance against a future sales /purchase, it is entered as Advance. 4. On :- When any payment or receipt is made but not against specific bill, it is entered as on . On transactions do not affect bill –wise outstanding as the transaction is not adjusted against any bill. It however reflects in the net balance of the ledger. Multiple Warehouses / Locations:- Maintaining warehouses / godowns enables location wise movement of stock items. Tally allows organizations of godowns into smaller components and nest into any number of levels. This facility can be availed by setting the option Maintain Multiple Godowns in the F11: Features menu to Yes. Godowns can be created, altered and displayed under the option Godowns under Inventory information of the Gateway of Tally menu. Creation of Godown:Godowns can be created by selecting the option Create of the option Godown under the Inventory Info menu.

Alternation of godowns:- Any Godown can be altered by selecting the option Alter of the option Godowns under the Inventory info menu. On selection of this option, list of all created godowns is displayed prompting the to select the godown that is to be altered. The altered information can be saved by responding Yes to the query Accept? Yes or No. To delete a godown, the keys + is to be pressed under the alternation screen. Display of godowns: selecting Display under the option Godowns of the inventory info menu displays a list of all created godowns prompting the to select the godown that is to be viewed. Upon selecting a godown, information for the godown is displayed.

Stock Transfers to warehouses / Branches:If a trader maintains several godowns to keep stock, he may be required to make internal transfer between godowns to maintain stock. He would be required to keep proper record of all such transfers between godowns. Internal transfer of stock between godowns is enabled by F7: Stock Journal voucher under Voucher Entry.

The following figure depicts a stock journal voucher for transfer of stock between godowns. Batch wise / Lot wise Details: Maintaining Batch wise details enables identification of each ID of an item. This can be activated by setting the query Maintain Batch wise details to Yes. Consequently when stock item is created, the would be prompted whether he

wishes to maintain batch- wise details for the stock item. The will have to provide Batch –wise details. Besides, if the is required to maintain expiry dates for batches, the option set Expiry dates for batches is to be set to Yes. For many a trade, this is a statutory requirement such as Pharmaceuticals, food products etc. The Batch –wise details screen appears as follows.

Purchase Order Processing:- In certain cases, the trader/ manufacturer may be required to place an order with a supplier for certain items that would be supplied on a later date. For this, the trader/ manufacturer would be required to maintain proper record to track such orders. Tally allows the to optionally activate the feature of purchase order processing by setting the option Allow Purchase Order Processing to Yes. This will activate Purchase Order under F9: Purchase in voucher Entry. Upon order entry, the orders can be linked with the inventory vouchers to update the order balances. By activating Purchase order option, the will be able to enter Purchase order, link to Receipt note, track outstanding orders.

Sales Order Processing:- Sometimes, certain orders may be placed with the organization for the sale of certain items that would be delivered on a later date by the customers or even the suppliers. Tally allows the processing of such orders ( sales orders). This can be enabled by setting the option Allow Sales order Processing to Yes under F11: Features. This will activate sales order Under F8: Sales In voucher Entry. On selection of this option, the will be able to enter sales orders, link to delivery note, track outstanding order and related reports.

Delivery Note:- Goods delivered on of sale are entered in delivery note. In order to enable delivery note, the query use Tracking Numbers? Is to be set to Yes. This will activate Delivery Note under F8: Sales under Voucher Entry of the Gateway of Tally menu.

The process of entering into the delivery note voucher is explained below along with figures: At the party a/c name prompt, the party ledger (to whom goods are being delivered) is to be selected from the List of Ledger s pop-up. On accepting the party s name, party details sub screen appears to enter order number if any and other details. On competition of party details, the item that is delivered should be selected form the List of items. This brings the item allocation sub – screen for the item and prompts for the tracking number. Tracking number is the common references to link between transactions documents ( e.g. this reference would be used when invoice is issued against this Delivery Note). The current delivery note number is to be selected from the list of tracking numbers. The cursor then moves to the next line prompting to select godowns, quantity and the rate. The transactions amount is auto computed. The item allocation screen is depicted below. The details entered here would be carried to the invoice when the delivery note is linked through this tracking number. After item entry is complete, the option End of list is to be selected from the list of items to return to the main screen.

Receipt Note:Goods received on of purchases is entered in Receipt note. Samples received etc. can also be entered in Receipt Note. The entry is similar to Delivery Note explained above except that in party details, only suppliers details carrying the suppliers name and address can be entered. The can however overtype.

Rejection In:Goods received back on of sales return is entered in Rejection In. In order to enable this, the query use Rejection Notes? Is to be set to Yes under F11: Features.This would activate Rejection In under F9: Sales Voucher. The Rejection In screen is depicted below: In the ledger field, the party ledger is to be selected. The selected ledger name and address is carried to the Customer Name and Address field.

The cursor then moves to the item table. Here, the item is to be selected from List of items. On selection of an item, the item allocation screen appears to enter details for the item. At the tracking number field, the voucher number is to be selected from the list of tracking numbers or any other number may be entered to be linked with the Credit Note later. Next, the location, quantity, rate etc. should be entered to get the computed amount. After item entry is complete, the option End of List is to be selected to return to the main screen. The item allocation screen is shown below:

Rejection Out:Goods returned back on of purchases return is entered in Rejection Out. This can be enabled by setting the option. Allow Rejection Notes? To Yes under F11: Features. This activates Rejection Out under F9: Purchase voucher. The entry in this voucher is similar to Rejection in as explained above.

Name:-Dibyakanta Prusty Class:-3rd year BBA Roll no:-307BBA117 Exam Roll no:-BBA/08-088