Tally.ERP9 Tutorial Part-1: Create and Setup Your Company

To keep a record of all your business transactions, you need to first create a company in Tally.ERP 9. Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.

Creating a company in Tally.ERP 9 is a simple, one-time activity. The company data created can be modified, exported, and other company data can be imported into your company at any given point of time.

To create the company, just enter the company name, address and other details, such as financial year, security. Once you have created your company, based on your business preferences, you can use the accounting, inventory, payroll, and taxation features. You can also specify the tax registration details as applicable, such as GST, TCS, or TDS, which can be accounted for your transactions.

Tally.ERP9 Book (Advanced Usage) @ Rs.550
Tally.ERP9 Book (Advanced Usage) @ Rs.550

Once you have set up your company in Tally.ERP 9 based on your business requirements, you can record and manage your day-to-day transactions, and track them – even remotely.

Assignment:

Swayam Sales is one Departmental Store in Balasore, Odisha, with GSTN  No – 21AGHPB2764P1ZD  deals with both Whole selling & Trading of different types of Products like … Electronics, Electrical Home Appliance, Mobiles etc. etc. with the following information’s and will maintain his Books of Accounts with the help of Tally.ERP9 Accounting Software with effect from 01-04-2020.

Swayam Sales
Balasore, Odisha – 756001
GSTN – 21AGHPB2764P1ZD
Mob – 9437264738
Website : www.tallyerp9help.com

1. Company Creation in Tally.Erp9 :

You can create a Company profile by using the following procedure :

1.            Gateway of Tally.ERP 9 →  Create Company (from opening screen)

Company Creation in Tally.Erp9

2.            Gateway of Tally.ERP 9 →  Alter ( Alt+F3) → Create Company

Company Creation in Tally.Erp9

It provides the following screen:

Company Creation in Tally.Erp9

Directory :

modify the data path, if required.

Primary Mailing and Contact Details :

The correspondence details of your company such as mailing name, address, state, and Pin code, telephone number, email ID, and so on can be entered here.

  • Select the country for which you require the statutory features in the field Country
  • Base currency symbol is enabled in accordance with the country selected.

Books and Financial Year Details:

Company Creation in Tally.Erp9
  • Financial year begins from : Tally.ERP 9 pre-fills this field based on the date settings of your computer and the Country selected in the Company Creation screen.

For example, if your computer date is set to 06-06-2020 and the region is set to India, the financial year is pre-filled as 01-04-2020.

  • Books beginning from : By default, Tally.ERP 9 fills this field with the Financial year begins from date. You can update this, as needed.

For example, you started to maintain your Books of Accounts in Tally.ERP9  from 1-June-2020. You can update the Books beginning from date to 1-June-2020, while the financial year will be 1-Apr-2020.

Security Control :

This is optional. You can enable security features such as TallyVault and User controls for your company anytime later. 

Security Control in Tally.ERP9

a)            TallyVault Password : If you don’t want to display your company name in Tally.ERP 9 while selecting the company, you can specify a TallyVault password for your company. You can access this company only if you know this password.

b)            Use Security Control : You can allow authorised user access to your company by setting up a username and password for the company. Which means, next time you select the company, you will need to provide this username and password to open the company data. For different users, you can set up different user credentials for controlled access of your company.

Note: The administrator password is case-sensitive, and if forgotten, it cannot be retrieved. Once Security Control is enabled in the Company Alteration screen, the fields against Password and Repeat password will display a single star.

c)             Use Tally Audit features : Tally Audit allows the administrator or an auditor profile user to track changes in accounting information.

d)    Disallow opening in educational mode : Set this option to Yes , if you do not want the company to be opened in the educational mode. In the educational mode, you can record transactions only on the first and last day of a month.

Base Currency Information :

Base Currency Information varies based on the country selected. The various fields under this section include:

Base Currency Information in Tally.ERP9
  • Base currency symbol : The currency symbol of the respective country selected appears in this field.
  • Formal name : The name of the currency specified.
  • Suffix symbol to amount? : For countries which specify the symbol after the amount (value) – this option can be enabled. For example , Yen is specified after the amount (5000 Yen).
  • Add space between amount and symbol? : Enable this option if you require space between amount and symbol.
  • Show amount in millions? : This is useful for companies, which require reporting the financial statements in millions.
  • Number of decimal places : This is set to 2, by default. However, it can be specified up to 4 places.
  • Word representing amount after decimal : The name of the decimal portion of amount appears based on the country selected. For example , if India is selected as the country and Number of decimal places is entered, then paise appears by default.
  • No. of decimal places for amount in words : You can specify the number of decimal places for printing the amount in words. This number should be equal to or lesser than the number specified in field No. of decimal places for amount in words

Finally, confirm company creation by pressing the ENTER key/ “Y” key to accept all declaration for the Company. The Gateway of Tally screen appears as shown below:

Gateway of Tally screen

(Now you will be able to work with the Current Company)

2. Opening (Loading) the Company in Tally.ERP9

Once you have created a company, you can load/open the company in one of the following ways:

Select the company

  • Open Tally.ERP 9 Select Company > and select the company from the List of Companies .

Configure Tally.ERP 9 :

If you wish Tally.ERP 9 to load the company whenever you open Tally.ERP 9

1.            Gateway of Tally F12 (Configure) > Data Configuration .

2.            Set Load companies on start-up to Yes .

3.            Select companies to preload on start-up : You can select one or more companies to get loaded based on your choice, when you open Tally.ERP 9 next time onwards.

The first Screen is called Gateway of Tally.ERP 9.

Gateway of Tally is the screen that appears on selecting a company. The Gateway of Tally menu differs based on the type of company selected. An Accounts Only Company has a different Gateway of Tally menu from that of an Accounts-with-Inventory Company.

The Gateway of Tally menu of a company appears as shown below:

Main Area (Ctrl+M)

The Main Area is separated into the following two areas:

>> Left-hand side area

>> Right-hand side area

The left-hand side area in the Main Area provides information of Current Period, Current Date and List of Selected Companies and Date of Last Entry.

In the right-hand side, you get more detail information on the Company. The Company information menu consists of the following:

1.            List of activated Company (Company already created)

2.            Masters (for defining Ledger, Group, Sub-group, Inventory)

3.            Utilities like Import or Export of Data and Banking features

4.            Transactions/Voucher Entry (Recording Transactions)

5.            Reports (Viewing the Balance Sheet, P&L and other Reports)

Button Bar.

3. Modification | Update | Alter Company Details | Delete Company in Tally.Erp9

If your company address, phone number, or any other contact information was not provided earlier or has changed, you can update such details in Tally.ERP 9. Any changes made to these details will be reflected accordingly in your reports and printed invoices.

1.            Gateway of Tally > press Alt F3 (Cmp Info) > Alter .

2.            In the Company Alteration screen, make the necessary changes.

3.            Accept the changes. As always, press Ctrl to save.

If you do not need the company anymore, you can delete the company as well by pressing Alt+D in Company Alternation mode screen.

Click Yes.

 Press Enter to delete the Company.

Note: Deletion of a company is irreversible. The company will be permanently deleted from the system.

4. Shut (Close) a Company in Tally.ERP9

1. Go to Gateway of Tally > Alt + F1: Shut Company .

2. Select company from the List of Primary Companies .

3. Press Enter to shut the company.

5- Activate GST for Your Company in Tally.ERP9

To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Once activated, GST-related features are available in ledgers, stock items, and transactions, and GST returns can be generated.

GST Registrations are of two types…

1. GST Regular Scheme ( for Regular Dealer)

The GST regular scheme is for the general taxpayers whose turnover is above the threshold limit.

Under the GST regular scheme, all individuals with turnover above 40 lacs are required to take GST Registration. They are required to pay GST on goods & services as per the applicable rates and do regular GST return filing

2. GST Composition Scheme ( for Composite Dealer)

The composition scheme is meant for small businesses whose turnover of taxable goods not more than₹1.5 crores, where GST has to be borne by the seller @1% of such turnover by traders, @2% bymanufacturers, 5% for Restaurants & 6% for Service Providers.

A Composition Dealer has to issue Bill of Supply. They cannot issue a Tax Invoice. This is because the tax has to be paid by the dealer out of pocket. A Composition Dealer is not allowed to recover the GST from the customers.

(A) Activate GST for Regular Dealers

1.            Open the company for which you need to activate GST.

2.            Press F11 F3 .

3.            Enable Goods and Services Tax (GST) – Yes .

4.            Set/alter GST details – Yes . The GST Details screen appears.

5.          State – shows the State name as selected in the Company Creation screen. This helps in identifying local and interstate transactions according to the party’s state.

6.            Set the Registration type as Regular .

7.         You can keep the rest default fields as same and don’t change ( but you can change as per your requirements)

(B) Activate GST for Composition Dealers

1.            Open the company for which you need to activate GST.

2.            Press F11 F3 .

3.            Enable Goods and Services Tax (GST) – Yes .

4.            Set/alter GST details – Yes .

5.            The State field helps in identifying local and interstate transactions according to the party’s state. If you change the state here, the company details will get updated.

6.            Set the Registration type as Composition .

7.            Based on your business type, select the Basis for tax calculation .

[ For outward supplies, the total of taxable, exempt and nil rated will be considered as the Taxable Value .

For inward supplies, the total value of purchases made under reverse charge will be considered as the Taxable Value . ]

You can record transactions using the ledgers with GST details, and print invoices with GSTIN.

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