educationhelpersite: INTRODUCTION OF TALLY 7.2

Tally ies (integrated enterprise solution) 7.2 provides you with two specialized features:

Single User Licensing

Multi User Licensing

TallySilver for Single-User

The single-user Licensing allows the deployment of Tally on ONLY ONE computer with an option of activating it Online or Offline. However, you can use the same Tally license on another computer, by surrendering the license activated on the first and reactivating it on the other. If you are an Offline user, you can take a request file to a computer, which has Internet connectivity and activate your copy of Tally easily.

TallyGold for Multi-User

The multi-user Licensing feature facilitates the use of Tally on ANY NUMBER of computers connected to a local area network (LAN) with a provision of activating the license Online or Offline. However, the method of activation is no different from the one followed in Single User Licensing system.

After the successful installation of multi-user license on the License server, you can have Tally start when Windows starts and run as a service in the background. The License clients may install and use Tally later on.

Note:
1. The activation of the license needs to be done only twice, not monthly.
2. When the multi-user licensing system is deployed across the network, enough care must be taken to set the parameter 'TallyLicenseServer’ in the configuration file of Tally (Tally.ini) on the License Clients.
3. In multi-user licensing, if you work on Windows XP and have a firewall installed, ensure that the firewall allows access to the Server Port.

The first time you run Tally after installation, the Activation Form dialog window will be displayed in both Single User and Multi User licensing systems.

Enter your Serial, Key and E-mail Id (If you are connected to Internet). Else, press Esc or Ctrl+Q to quit this form.

Licensing Menu

To view the licensing menu, follow this path: Gateway of Tally > F12: Configure > Licensing

Single-User

The screen given below displays the options available in License menu:

Functions/Features

This option allows you to view the Functions/Features enabled in Tally.

Menu Path: Gateway of Tally > F12: Configure > Licensing > Functions and Features

Products

This option displays the information on the TCP (Tally Compliant Product), which is available for that particular instance of Tally. Here is an example:

Online

The term Online indicates that your computer is connected to the Internet.

Offline

The term Offline indicates that your computer is not connected to the Internet.

Quit

This option enables you to quit the licensing menu.

Multi-User

In multi-user system, the License menu on the License server displays all the options that are available for single-user system.

However, on the License client computers, the options Online and Offline do not exist, which is obvious from the screen shown below:

Activating Tally

This section explains how Tally ies 7.2 is activated for Single and Multi-User systems.

Activating TallySilver for Single-User

The single-user Licensing allows the use of Tally on ONLY ONE computer with an option of activating it Online or Offline. The following sections explain how you can activate Tally for Single user, both Online and Offline.

For Users Connected to the Internet

You can activate your license by using the Online option available in F12: Configure > Licensing > Online.

Follow the steps to activate your license:

Click the Tally icon to start Tally in Educational mode.

Tally displays Online Activation Form dialog window with three fields.

Press the Enter key to proceed.

Tally installed on your computer, will connect to the Tally Internet Services Server and validates your registration information.

On entering the correct Serial and Key, a pop-up box will display a message indicating that your license is activated.

Once your license is activated, you will be provided with the Online Menu. To view the Online Menu press F12: Configure > Licensing > Online.

The Online menu has two options:

Update

This option helps you to update new features of Tally

Surrender

This option enables you to surrender the Tally License

For Users not Connected to the Internet

If your computer does not have an Internet connection, you can activate your Tally license using Offline option.

Follow these steps to activate your license:

When you start Tally, an Activation Form dialog window will be displayed. As you do not have an Internet connection, press Esc or Ctrl+Q to quit this form.

Press F12: Configure > Licensing > Offline

Tally displays the Offline Activate Form dialog window with three fields

Press the Enter key to proceed.

If your Serial, Key and Email Id are found correct, you will get a pop-up box that indicates your tally_req.slk file is successfully generated.

The tally_req.slk file is stored in the Tally folder. You need to copy the tally_req.slk file on a floppy/CD and take it to any computer with Internet connectivity and has Tally installed on it.

Copy the tally_req.slk file to the Tally folder on this computer, start Tally and go to F12: Configure > Licensing > Offline.

Click on the Send External Request option to send the request to Tally Internet Services server. The response will be saved in a new file called tally_resp.slk, which will be generated in the Tally folder.

Copy the tally_resp.slk file into a floppy or CD, from the Internet connected computer and copy the same file into the Tally folder of your computer.

You are now ready to use Tally.

Activating TallyGold for Multi-User

If your company runs on a local area network (LAN) and requires that Tally be installed on all the computers connected to the network then you need to activate multi-user licensing of Tally. In this process, one computer is designated as the License Server and all others as License clients. The license is installed on the License Server.

Tally License Server

During the installation of Tally, select the Run Tally License Server at Windows Startup (For TallyGold Users) check box. This will enable the user to have Tally start when Windows starts and run as a service in the background on the server machine. The figure shown below displays the new installation screen.

Here is an alternative method of accomplishing this:

Double-click TallyLicServer.exe found in Tally directory

A dialog box appears which comprises the following elements:

Install

To install the multi-user license on the server, press Install button

Uninstall

To uninstall the multi-user license previously installed, if any, press Uninstall button

Parameters to be set in Tally.ini file on the License Clients:

On successful installation of Tally on the client, open Tally.ini file found in Tally directory and set the following parameters:

TallyLicenseServer = Name of the License Server Computer or IP Address of the Server.

Note: On the License Server computer, there are few significant parameters set by default in Tally.ini file viz., TallyLicense = Connect & ServerPort = 9000

Registering Tally

The procedure for registering Tally is the same for single and multi-user systems. If you do not wish to register when the activation is complete, you can register later. To do this, go to F12 > Licensing and press Register Yourself button found on the right.

If you have an Internet Connection

After you activate Tally online, you need to exit Tally and Open it again. Now, you can register Tally through the Internet using the Register Tally button.

Follow these steps to register Tally:

Click the Register Tally button on the right side of the Gateway of Tally screen.

The Login screen will be displayed. Enter the Serial number and Key/ID in their respective fields. Now, click the Login button.

The Registration screen will be displayed. Enter your details in the form.

Click on the Save button.

You will get a message, confirming your registration.

You can register your Tally at www.tallysolutions.com by clicking on Register Tally link.

If you do not have an Internet connection

After you activate Tally Offline, go to a computer connected to the Internet and register Tally through the Internet by clicking on the Register Tally link at www.tallysolutions.com.

Follow these steps:

The Login screen will be displayed. Enter the Serial number and Key/ID in their respective fields. Now, click the Login button.

The Registration screen will be displayed. Enter your details in the form.

Click on the Save button.

You will get a message, confirming your registration.

Note: The Offline user needs to work on a computer connected to the Internet to Register Tally.

Validating Tally

The procedure for validating Tally is the same for single and multi-user systems. The license has to be validated once within 45 days of activation. Tally will prompt you to validate the license, before the expiry period.

If you are connected to the Internet on Tally Startup

If you are connected to the Internet and have administrator privileges, Tally will validate the license for you automatically and display the message License Updated Successfully!.

This is a one-time process.

If you do not validate, Tally will switch to Educational mode.

If you are not connected to the Internet on Tally Startup

If you are an Online user who connects to the Internet occasionally, Tally will display Your License is about to expire! Please re-activate message. Connect to the Internet and validate the license manually using the F12: Configure > Licensing > Online > Update License.

This is a one-time process.

If you do not validate, Tally will switch to Educational mode.

If you do not have an Internet connection

If you are not connected to the Internet, Tally will display Your License is about to expire! Please re-activate message. You will have to validate the license in a computer with an Internet connection (Follow the procedure explained in the section on ‘If you do not have an internet connection’ in Activating TallySilver for Single User). Now, you can validate the license manually using the F12: Configure > Licensing > Offline > Update License.

This is a one-time process.

If you do not validate, Tally will switch to Educational mode.

Note: The Offline user needs to work on a computer connected to the Internet to Register Tally.

Surrendering Tally License

If you want to use Tally on another computer, you need to surrender the license, which was activated on the first computer using the option Surrender (F12 > Licensing > Online/Offline) and subsequently activate it on the second.

The procedure followed for surrendering the license is the same for both single and multi-user systems.

To surrender the license, follow these steps:

After Online activation, Press F12: Configure > Licensing > Online > Surrender. The Surrender License request is sent to Tally Internet Services Server. If it gets a valid response, the license file in the Tally folder is deleted.

After surrendering the license, Tally will function in Educational mode.

Having surrendered the license, you can activate the license on a different computer.

Upgrading from Tally ees 6.3 to Tally ies 7.2

Follow the steps given below to upgrade from Tally ees 6.3 to Tally ies 7.2.

Run Tally ees 6.3 and for each company:

Print the Statistics Page (Display > Statements of Accounts > Statistics)

Print the Trial Balance

Take a Tally data backup of the existing data using Tally backup. It is recommended that you take this backup on a different drive than the one on which Tally is installed. E.g. backup on floppies, CD or zip disk.

Install Tally ies 7.2 (For installation, follow the procedure explained in Activating Tally ies 7.2).

Both HardLock and SoftLock users can follow the procedure explained below to update the Tally ies 7.2 License:

Update – If you are connected to the Internet:

If you are connected to the Internet, you can update the license using the Online option available in F12: Configure > Licensing > Online > Update.

Update – If you are not connected to the Internet:

If you do not have an Internet connection, you can update the license using the Offline option available in F12: Configure > Licensing > Offline > Update.

Tally will validate your information and create your Tally information in tally_req.slk file. This file is created in the same location where Tally is installed. Copy the tally_req.slk file in a floppy or CD, and insert it in a computer with Internet connectivity. This computer must have Tally installed on it.

Copy the tally_req.slk file to the Tally folder in this computer, start Tally and go to F12: Configure > Licensing > Offline. Click on the Send External Request option to send the request to Tally Internet Services server. The response will be saved in a new file called tally_resp.slk, which will be generated in the Tally folder. Take the tally_resp.slk file in a floppy or CD, from the connected computer and copy the same file into the Tally folder of your computer and restart Tally.

Load a company. Tally will rewrite the existing data in the new format automatically.

Display the Statistics page. Match with the previously printed page.

Display Trial Balance. Match with the previous printed Trial Balance. If both match, all is well. If they do not, you will be able to assess the extent of loss of data.

You are now ready to take advantage of the new Tally ies 7.2!

Note: It is important that you keep a full copy of the folder containing the Tally ees 6.3 programs and data before you upgrade.

Directory

The data path where you want the company to get created can be specified in the Directory field.

This field is skipped by default assuming that you wish to create the company in the data path given in the Tally.INI file. However, if you want to change it, simply use the backspace key and change it to what ever required.

This is basically referred to as the TallyAnywhere concept – which is an ability to create/load companies in separate directories. The Directory field is found during Select, Create, Backup, Restore and Rewrite options for a company. By default, the cursor will skip the field, presuming that you wish to use the default data directory for your work. You may press backspace and give a completely new path and work through there.

For example, the default Tally data directory could be C:\TALLY\DATA. You may now wish to create a new company on C:\TALLY\PERSONAL, and some other companies on C:\TALLY\BRANCHES. The next time, the default directory will continue to show C:\TALLY\DATA, and if you wish to work on the data of your branches, you would press backspace and enter C:\TALLY\BRANCHES for the directory name. This would bring up those companies whose data is stored there. We can even give the path of a network server or any storage device (example – TallyLocker).

Name

Give the name of the company whose books are being opened. The name given here will typically be the name of your company. If you are a professional accountant and are maintaining the books of your clients, give the Client Company's name (Of course, you would maintain your firm's books on Tally too! In that case, give your firm's name).

As you type the name of the company, Tally compresses it so that all the characters can be viewed on the screen. This is Tally's marvellous innovative technology Auto-Fit which allows you to enter really long names.

Tally does NOT scroll to the right - making the first few characters invisible. The information given, can be viewed all at once!

Tally compresses the information on screen – however, at the time of printing – the given information is printed as required. An example printout appears as:

Remember:

Information given in the Name field - is NOT restricted to the visible length of the (field) space for entry.

Tally's marvelous innovative technology "Auto-Fit" allows you to enter long (really long) names.

Tally compresses the characters horizontally so that the name is fully visible and you needn't scroll sideways (Now you do not have to wonder whether the name visible on the screen is complete or not. Scrolling sideways almost always makes you forget the first few words that you had read and you have to scroll back).

Tally handles compressed information correctly while printing. It adjusts the reports accordingly. Even if the information is not very clear on the screen – do NOT worry. Tally will print the information correctly!

Mailing Name and Address

In addition to the Company Name - Tally provides the facility to enter the mailing name and address of the company.

The Mailing Name field displays the Company Name automatically. However, you may change it if required, as the mailing name can be different from the Company Name. The mailing name and address details are picked up for inclusion in any report which needs the company name and address at the top, e.g., Balance Sheets, Statement of Accounts, etc.

For example, the company name contains information of the year (so that you know which company data you wish to work on) – but in the mailing details obviously the company name cannot be given like that! Noting this Tally allows you to change the information as required.

Tally's reports print the mailing name and address as per this screen:

Another example

The advantage of providing Mailing Name can be understood with this example > let's say you have branches in Delhi, Bombay and London.

Each branch may begin the branch books by giving the company name as: "Tally Solutions" followed by the city name – ("Tally Solutions - New Delhi"). However, its mailing name is comprehensive with full details:

Tally Solutions Private Limited
New Delhi Branch
R-44, Greater Kailash - 1
New Delhi – 110048

The mailing name and address would be available for financial statements and statements of accounts that may need to be given outside the company.

Tally does NOT restrict the number of lines for the address details. Any number of lines containing the address details can be given and Tally accommodates all the given information and vertically compresses the same. For example, a company's address details are given on separate lines – the screen appears as:

Remember:

In the space provided for the Address details - observe the vertical compression > as compared to the Mailing Name field where there is horizontal compression.

You can specify any length for the mailing name and you are permitted to give any number of lines for the address. The information is completely visible.

Tally handles compressed information correctly while printing. It adjusts the reports accordingly. Even if lines are not very clear on the screen, do not worry. They would be printed out fine.

State

You can select the appropriate state from the predefined list.

PIN Code

This option allows you to specify the PIN Code (Postal Index Number) of the specified address.

E-mail Address

Give the e-mail address that will be used to e-mail documents, reports and data from Tally.

Income Tax Number

The Income Tax Number is the number allotted by the Income Tax Authorities. In India – this could be the Permanent Account Number - which comprises of 10 digits and may be alphanumerical.

The information given here will appear in Account Confirmation Statements. However, it is NOT compulsory to provide this information – this field can be left blank.

Local Sales Tax Number

In India, the States as well as the Centre (Central Government) charge tax on transfer of merchandise. The State usually taxes transfers within the State (Local Sales Tax), while the Central Government will charge tax on transfers from one State to another (Central Sales Tax).

You may be required to register your company with both local and federal (or central) governments. Registration is acknowledged by way of numbers, which often need mentioning in different documents, especially invoices.

The Local Sales Tax Number refers to the registration number allotted by Local (State) Sales Tax Authorities. The details given here comprises of a number and date of registration (in India). This information, if given, can be printed on invoices.

It is not compulsory to give this information and you may leave it blank.

Inter-State Sales Tax Number

The Inter-State Sales Tax Number refers to the registration number allotted by Central Sales Tax Authorities. The details given here comprises of a number and date of registration (in India). This information, if given, can be printed on invoices.

It is not compulsory to give this information and you may leave it blank.

Currency Symbol

Currency symbol is the symbol of the base currency, that is, the books of account will be maintained in this currency. Tally uses this symbol in reports, where necessary.

The symbol Rs. - appears by default. You are NOT allowed to change the same. Incase you require multiple currencies, you can procure the module on payment. For information of different modules - please refer the section Functions and Features.

Maintain

Tally displays a pop-up list called Type of Company – this is how your books of accounts will be maintained.

Accounts only

Select this only if you do not have any inventory transactions (suitable for professionals and corporate offices). Tally would not permit intrusion of Inventory related information that are not required.

However, at a later date (if required) you can alter the information as Maintain Accounts-with-Inventory – Tally accordingly now provides all the inventory-related information.

Accounts-with-Inventory

This obviously allows you to maintain both financial accounts and inventory. You may choose not to use one or the other until the need arises.

Note: You can always modify the company information (to Accounts only company) to change these settings to allow or to discontinue accounts or inventory. However, exercise caution – as the inventory-related information will no longer be available.

Financial Year From

In most countries, the books of accounts of a company is maintained for a stipulated period like, 12 months, 15 months, etc. This stipulated period is referred to as the Financial Year. Therefore - specify the required Financial Year date - for the company being created.

The stipulated period of the financial year is 12 months in most countries. Hence, Tally automatically considers 12 months from the date you give here as the Financial Year.

For example, if 1^st April 2001 is given as the date, the Financial Year will be April to March in this case, ending with 31^st March 2002. Give 1^st October 2001 as the Financial Year From and the Financial Year will be from October to September in this case, ending with 30^th of September every year.

Tally allows you to maintain data for multiple years by changing the period (Alt+F2) at the Gateway of Tally. In addition, you can also specify the date of actual establishment of the company (date of incorporation). This is possible in Books beginning from.

Books Beginning From

Tally presumes that you wish to maintain books from the beginning of the financial year – hence, Tally displays the date given in Financial Year From automatically. However, you can change the date if required.

The date for Books beginning from can be changed – in case of companies, which are started in the middle of the year (not many people wait for the 1^st day of the Financial Year (FY) to start companies!). If your company is a new company, you would like to start the books of accounts from the date of actual establishment of the company (date of incorporation) but close books according to the Financial Year specified by you. This is because - you do not want reports including the period when your company was not even in existence. Tally provides the required flexibility in such a case by allowing you to give the date when the books of accounts actually began. Tally will open books from this date and close on the last day of the FY.

For example, your company is established on 19^th August 2001. The opening balances for all the accounts can be given as on 19^th August 2001 even though the Financial Year given is 1^st April 2001 (April to March financial year). The company's books will begin on 19^th August 2001 and close on 31^st March 2002. It ensures smooth transition to the next year.

This concept can be applied even when you are migrating to Tally from any other system or a manual accounting system on any day during the FY. Simply close books in that other system on the previous day and start books on Tally from this day. You are allowed to give opening balances of all ledger accounts including revenue accounts.

TallyVault Password

TallyVault is an enhanced security system, which allows for encryption of the company data. Encryption means converting normally accessible Tally information into unrecognisable information, which can only be reconverted by authorized persons.

Give a password here and repeat the same. This basically results in the creation of an encrypted company whose information is not accessible to users other than the password holder.

Use Security Control?

Set it to Yes, if you want to initiate a password-protected system to control access to Tally data. Otherwise set it to No.

If you opt for security control, Tally offers a comprehensive password based access control to different parts of the system based on authority lists created by the Administrator. (The section on Security Control under Administer Tally contains details on authority lists)

Give the name of the administrator (presumably yourself) and your password. You repeat the password by way of verification. The password is not displayed to protect it.

Note: Any password based security mechanism is only as good as the discipline maintained in password management. You may need layers of security beginning at the Operating System level depending on the nature of information. Consult an IT Security Specialist if necessary.

Use TallyAudit Features

TallyAudit allows the administrator or an auditor profile user to track changes in accounting information. If you wish to use this facility, select Yes. TallyAudit will be available only to the administrator/auditor, through Display of Statements of Accounts. It will be discussed in fuller detail under the Security Control section in Administer Tally.

Base Currency Information

The lower portion of the Company Information screen is reserved for Base Currency Information. Tally is multi-currency enabled. You can record transactions in foreign currency, raise invoices in US Dollars (or any other currency), maintain bank accounts or ledgers in foreign exchange, if required. However, for accounts to be meaningfully reported, all transactions should be converted to a common currency. A common factor enables compilation and summarisation as well as analysis.

Base Currency is the common currency in which your accounts would be maintained. It is usually your home (local) currency, assuming that most transactions are in this currency. Moreover, financial statements would be prepared in the base currency by default. These would normally be required for local statutory authorities. For example, if the accounts belong to a company in India, the base currency would be Indian Rupees (Can you imagine the local authorities accepting financial statements in Vietnamese Dongs or even US Dollars for that matter?). On the other hand, if the company were located in the UK, the base currency would be Pound Sterling. Now, it is not compulsory for you to do this, you could very well do the reverse. All Tally needs is any base currency.

Base Currency is the currency in which your accounts would be maintained. Financial statements would be prepared in the base currency by default and these would normally be required for local statutory authorities. The Base Currency information has to be compulsorily provided in Tally, during creation of a company.

Base Currency Symbol

The currency symbol given earlier in the Company Creation screen is displayed here automatically.

The different currency symbols cannot be provided unless the Multi-currency module is enabled. You can procure the Multi-currency module on payment. For more information – please refer Functions and Features.

Tally uses this currency symbol in reports, where necessary.

Formal Name

Formal Name is the full name of the currency specified.

The Formal Name for the base currency is set to Indian Rupees. For other currency symbols – the Multi-currency module may be procured on payment. For more information – please refer Functions and Features

Number of decimal places

The number of decimal places for the base currency is set to 2 by default.

Upto 4 decimal places can be specified in the Company Creation screen. Indian currency has 2 decimal places – certain other countries require 3 decimal places and so on. This is possible only if the Multi-currency module is enabled. The Multi-currency module can be procured on payment. For more information – please refer Functions and Features.

Show Amounts in Millions

This is useful for companies which require reporting the financial statements in millions. This is possible only if the Multi-currency module is enabled. The Multi-currency module can be procured on payment. For more information – please refer Functions and Features.

Is Symbol Suffixed to Amounts

For countries which specify the symbol after the amount (value) – this facility is provided. For example, Yen is specified after the amount (5000 Yen) unlike in India where the symbol is specified before the amount (Rs.5000)

Put a space between Amounts and Symbol

This facility is provided to users who require a space between the amount and the symbol. However, incase of cheque printing – putting a space between the amount and symbol could give an opportunity to misuse – hence, the flexibility to turn this option on and off as required – is provided.

Load a company

A newly created company loads automatically. However, for subsequent working on the same - you must load or select the company (Select and Load are synonymous). A company can be loaded in two ways:

Automatically by Tally.

Using the Select Company option (Company Information)

Tally Loading the Company Automatically

When creating a company, Tally creates a sub-directory under its \DATA directory for the company. The directory is allotted a number in serial order starting with 0001 (example – 0001, 0002…0009..0020, etc ? these are system generated codes for the company).

In order to automatically load a company – Tally has to be configured appropriately by setting the TALLY.INI file (available in the Tally directory).

Ensure that Default Companies is set to YES and specify the company number which has to be loaded automatically – for example, Load = 0001

Note: You can specify any number here as per the information available in the data directory (0001 or 0002 or 0003, etc)

Example of sub-directories created by Tally for different companies:

Company Information

In order to load a company using the Select Company option – you need to disable the default loading of a company. To do so - set, Default Companies = No OR place a semi-colon before Load = [company number] - (placing a semi-colon means that the words following it in that line would not be executed. Each line is a separate command).

On double-clicking the Tally icon, the screen appears as:

You can use the Select Company option in two ways - from the Company Information Menu OR using the button F1: Select Cmp (available on the Gateway of Tally screen on the button bar on the right-hand side).

This screen is separated into three sections, – Title Area, Main Area (Ctrl + M), Calculator Area (Ctrl + N) and the Button Bar.

The Button Bar on this screen comprises of the following buttons:

Help (Alt + H) – to access Tally's online context-sensitive help

F1: Select Cmp – to select or load a company

F12:Configure – to access the configuration settings to manage the information put into Tally.

Important:
1. Use the buttons on the right-hand side of the screen to Explore the Potential of Tally.
2. Press [Enter] wherever the cursor is placed to know the Depth of Tally!

Select Company

Press [Enter] on Select Company or using the button F1: Select Cmp > Tally displays this screen:

Tally displays:

Company Name (All the companies created are displayed).

System-generated code for each company displayed.

The Financial Year information – relating to the number of years data present in the company (for example, 1-4-2001 to 31-3-2002; 1-4-99 to 31-3-2001; 1-4-96 to 31-3-97, etc).

Note: The system-generated code for each company is displayed to assist you in identifying which company you wish to work on? in case you have multiple companies with the same name (as displayed in the above screen)

Select the required company to bring you to the Gateway of Tally of that company

Gateway of Tally

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

Gateway of Tally of an "Accounts Only" Company

The Gateway of Tally menu of an Accounts Only company appears as:

The Gateway of Tally screen is separated into four sections, – Title Area, Main Area (Ctrl + M), Calculator Area (Ctrl + N) and the Button Bar.

Main Area

The left-hand side of the Main Area gives information of

Current Period – this is the currently loaded or selected company's accounting period.

Current Date – this is the date of the last Voucher Entry of the selected company (this is NOT the calendar date).

List of Selected Companies – This displays the name of the loaded or selected company.

Masters – for creation of Accounting Masters and Importing Master information

Transactions / Vouchers - for creation of Accounting Vouchers and Importing transaction information

Reports – for viewing and printing financial reports using the information given in Masters and Transactions.

Button Bar

The Button Bar area on this screen, displays the following buttons (keys):

Help (Alt + H) – to access Tally's online context-sensitive help

F1: Select Cmp – to select a company

F1: Shut Cmp – to shut or close the company

F2: Period – to change the period

F3: Cmp Info – to access the Company Information Menu

F11: Features – to access the Company features for a company

F12:Configure – to access the configuration settings to manage the information put into Tally.

Note: You cannot load more than one company at one time. The loaded or selected company will be shut first and then the other company is loaded.

Important:
1. Use the buttons on the right-hand side of the screen to Explore the Potential of Tally.
2. Press [Enter] wherever the cursor is placed to know the Depth of Tally!

Gateway of Tally of an "Accounts-with-Inventory" Company

The Gateway of Tally menu of an Accounts-with-Inventory company appears as:

The Gateway of Tally screen is separated into four sections, – Title Area, Main Area (Ctrl + M), Calculator Area (Ctrl + N)and the Button Bar.

Main Area

The left-hand side of the Main Area gives information of

Current Period – this is the currently loaded or selected company's accounting period.

Current Date – this is the date of the last Voucher Entry of the selected company (this is NOT the calendar date).

List of Selected Companies – This displays the name of the loaded or selected company.

Masters – for creation of Accounting Masters and Inventory Masters and Importing Master information.

Transactions / Vouchers - for creation of Accounting Vouchers and Inventory Vouchers and Importing transaction information.

Reports – for viewing and printing financial and inventory reports using the information given in Masters and Transactions.

Button Bar

The Button Bar area on this screen, displays the following buttons (keys):

Help (Alt + H) – to access Tally's online context-sensitive help

F1: Select Cmp – to select a company

F1: Shut Cmp – to shut or close the company

F2: Period – to change the period

F3: Cmp Info – to access the Company Information Menu

F11: Features – to access the Company features for a company

F12:Configure – to access the configuration settings to manage the information put into Tally.

Note: You cannot load more than one company at one time. The loaded or selected company will be shut first and then the other company is loaded.

Important:
1. Use the buttons on the right-hand side of the screen to Explore the Potential of Tally.
2. Press [Enter] wherever the cursor is placed to know the Depth of Tally!

Company Information Menu

The Company Information menu appears as:

The Company Information menu comprises of:

Select Company

To Select or load a company

Shut Company

To Shut a company

Create Company

To Create a company

Alter

To Alter a company

Change TallyVault

To secure the data by providing a TallyVault password.

Backup

To take a backup of the company data

Restore

To restore a data backup

Important:
1. Use the buttons on the right-hand side of the screen to Explore the Potential of Tally.
2. Press [Enter] wherever the cursor is placed to know the Depth of Tally!

Shut a Company

Shut a company means to unload it. It does not mean that you have deleted it. Simply select it again to load and work on it again.

You can shut a company in two ways – either using the button F1:Shut Cmp (Alt + F1) or pressing [Enter] on Shut Company on the Company Information Menu.

If you use the Shut Company on the Company Information Menu, the screen appears as:

Alter a Company

You can modify, at any time, any information given whilst creating the company.

At the Gateway of Tally > [ALT]+F3 > Alter

Press [Enter] on Alter and the screen appears as:

Delete a Company

In order to delete a company, you have to load the same first.

Use Alt+F3 at the Gateway of Tally to proceed to the Company Information menu.

Press [Enter] on Alter and reselect the required company > the Company Alteration Screen is displayed.

Use Alt+D to delete. Tally will prompt for a confirmation on deleting the company.

Press [Enter] and Tally asks you whether you are sure.

Note: Please exercise caution before doing the above.

Activate Company Features [F11]

The different features of a company can be selected or modified by F11 button. This button is available in almost all screens of Tally as you might wish to modify it as your requirements change. The Company Features screen is reproduced below:

Unlike Configuration [F12], Company Features is specific to the current company only. Therefore, each company may have different features active. For example, a company in your group may need multi-currency whereas another company may not. Configuration options, on the other hand, affect all companies maintained in the same DATA directory and setting configuration for one company will affect other companies in that data directory.

Please note that certain features like multi-currency and multi-locations, once set to Yes, cannot be modified if the feature has been used. However, other features like Cost Centres and Bill-wise details can be modified even if they are used. If you reset the option after having used the feature in transactions, it is advisable to rewrite the company by using [CTRL+[ALT]+[R].

The two features - Cost centres and Bill-wise details- must be activated here for them to be available for ledger accounts. Each ledger account can then individually be set for the feature as required. For example, the options will become available for both 'A & Co' (a Debtor A/c) and 'Rent' (an Indirect Expenses A/c). You would want Bill-wise details but not Cost Centres for A & Co and vice-versa for Rent. Further details on these features are mentioned under Ledger.

Operations Configuration

Before starting work on the company, it is advisable to configure it by pressing F12 button at the end of the button bar, which will bring up the following screen:

Licensing

Licensing option is provided to activate your Tally Licensing Online or Offline.

The option is available under F12: Configure > Licensing . The screen appears as:

Functions/Features: This option allows you to view the Functions/Features enabled in Tally

Online:The term Online indicates that your computer is connected to the Internet.

Offline:The term Offline indicates that your computer is not connected to the Internet.

General

This has already been configured by you under Country Specific Configuration before creating the company. It caters to country specific requirements.

The options available under F12: Configure > General – are, Country Details, Style of Names, Style of Dates, Configuration of Numbers and Other Options. The screen appears as:

The Configuration settings of Country Details, Style of Names, Style of Dates and Configuration of Numbers are self-explanatory. The configuration options given under Other Options are explained as follows.

Show Monthly reports with Graphs

Use separate Menu for Final A/c Stmts

Print State and PIN Code with Address

By default, this option is set to NO. Setting this option to YES, will allow you to print the reports with State and PIN code details entered in the company creation screen.

Note: If you already have a company created with state and PIN code in the address field, then you need to set this option to NO.

Ignore errors & continue during data import

By default, this option is set to NO. Setting this option to YES, will continue to import even if an error is reported.

Numeric Symbols

This enables you to set the number styles. Defaults are also given. You may change them by overwriting. For example change negative sign from (-) to only ().

Accts/Inv Info Configuration

This gives control over what details should appear in the masters over and above those provided as default. This is available in the Accounts and Inventory Master screens through the F12 button and can be modified according to the needs at any time.

These have been discussed in detail in the relevant masters chapters.

Voucher Entry Configuration

Configure different features of your voucher entry screen. The screen will be filled up with varying details as specified here.

Other features of convenience, e.g., Use Payment/Receipt Vouchers as Contra vouchers can be activated here to effect transactions for funds transfer. By design, Tally allows such transactions only through Contra Vouchers.

Likewise, you are not permitted to use Journal Vouchers to be used for cash or bank transactions. However, recognising exceptional needs, you can override that restriction by activating the facility here.

These are defaults and should be changed if required. Please note that these are questions asked of you and you need Yes to activate the facility and No to deactivate it.

Click Allow Alteration of TDS Rates and Values to get more information.

Invoice/Orders Entry Configuration

Configure details for invoices, sales and purchase order entry.

The following options are country specific to Britain/Europe. Again, the options are in the form of questions and you need to state Yes or No to them. They have also been explained in the relevant invoice entry sections.

For India/Asia, the options would automatically use Excise instead of Interstate provided you have set your General Configuration accordingly.

Excise/VAT Setup

Whether to use Excise Duty or VAT depends on the General configuration.

F12: Configuration > General

Use Accounting Terminology of:

Select Britain/Europe for British style VAT handling

Select India/Asia for Excise Duty handling

According to this selection the F11: Company Features will contain the option to set up Excise Duty or VAT.

The F11 set up for Excise Duty/VAT affects method of calculation of duty in invoices. For example, when excise duty is not enabled for invoicing purposes in Company Features [F11] (as applicable for many products in India), Additional Duty and Surcharge function alike. In case it is enabled, then Additional Duty is added to the Duty Based on Items in the invoice to reflect the Total Duty payable. Its method of calculation is explained under Surcharge.

Please read through method of calculation for more details.

Activate Excise Duty

F11:Features > Set/Modify Other Company Features

Follow Excise Rules during invoicing – YES

Give the following excise information that will be printed on invoices.

After completing the entry accept through the entire F11:Features and return to Gateway of Tally.

Activate British Style VAT Returns

Unlike Excise Duty, this option simply controls the VAT Return preparation. More ledger level set up may be required, which is discussed under UK VAT Analysis.

F11:Features > Set/Modify Other Company Features

Prepare and Follow British Style VAT Returns – YES

Group Name Under which EEC Debtors are classified.

Group Name Under which EEC Creditors are classified.

If you deal with EEC countries, select a group.

(If you deal with the EEC, it is advisable to group your EEC Customers separately under a sub-group under Sundry Debtors. Likewise, group EEC Suppliers under a separate sub-group of Sundry Creditors. Take care to group only VAT registered companies in these groups as they would affect Box 8 and 9 as well as the EC Sales List. Unregistered companies or individuals (Distance Sales) should be grouped separately and treated like UK companies.)

If you not deal with EEC countries, Select Not Applicable

British style VAT handling and returns are more fully discussed under the section UK VAT Analysis.

After completing the entry accept through the entire F11:Features and return to Gateway of Tally.

Activate Excise Duty

F11:Features > Set/Modify Other Company Features

Follow Excise Rules during invoicing – YES

Give the following excise information that will be printed on invoices.

After completing the entry accept through the entire F11:Features and return to Gateway of Tally.

Activate British Style VAT Returns

Unlike Excise Duty, this option simply controls the VAT Return preparation. More ledger level set up may be required, which is discussed under UK VAT Analysis.

F11:Features > Set/Modify Other Company Features

Prepare and Follow British Style VAT Returns – YES

Group Name Under which EEC Debtors are classified.

Group Name Under which EEC Creditors are classified.

If you deal with EEC countries, select a group.

If you not deal with EEC countries, Select Not Applicable

British style VAT handling and returns are more fully discussed under the section UK VAT Analysis.

After completing the entry accept through the entire F11:Features and return to Gateway of Tally.

Printing Configuration

To configure voucher layouts for print output. Printing of vouchers, invoices and statements are configurable through this menu.

General

This configuration is applicable for all print reports.

Print Date & Time of Report

This option enables printing of system date and time on each report. (Note – vouchers, including invoices, are not reports). These are printed on the right top corner of the report as a control mechanism. It should not be confused with the date range of the report.

Quick Format

Tally prints in two formats – Neat and Quick. Neat printing takes advantage of fonts of the printer and is the default. It also compresses long data like long names and amounts and auto-fits them according to space.

Quick printing is suitable for Dot Matrix printers where speed is an issue. Hence, quick printing does not print fancy fonts. The auto-fit facility is, thus, not possible in quick printing.

Therefore, it will truncate data longer than the allotted space. To prevent this, set Yes for the two questions under Quick Format.

Payment/Receipt/Journal Vouchers, Credit Note/Debit Note

Configure the dimensions and details to print

Though the above options pertain to Payment Vouchers, those for other vouchers are similar.

Sales Invoice, Delivery Note and Sale Order/Quotation

Printing configuration of all sales vouchers like Invoices, Delivery notes and Sales Orders are accessible through Sales Transactions under Printing menu. Each transaction type is separately configurable and selectable from the sub-menu.

The different configuration screens for each of the above follow:

Sales Invoice

This is the configuration for the Tally invoice. Change as necessary.

Details of the above configuration options have been discussed in the chapter on Invoice Entry. These can be, however, set now or later as necessary. As usual, the configuration can be amended even if set.

Delivery Note

Delivery Note appears very similar to Invoices. However, fields like rate and amount may be required by some companies to be printed out on Delivery Notes. Others might not wish it. Hence, select the options as relevant to your company.

Sales Order/Quotation

Print sales orders and quotations as you want by configuring the following: Sales Orders, if marked Optional, during voucher entry, are printed as Quotations.

Purchase Voucher/Invoice and Purchase Order

A surprising option to print purchase voucher and purchase invoices! There has been a need to print these firstly to maintain continuity in voucher numbers and secondly to provide a document in case the supplier does not. Purchase Orders are, of course, required to be printed and sent to suppliers. To configure these, select Purchase Transactions under Printing.

Purchase Voucher/Invoice

Purchase Orders

Purchase Orders are required to be printed and sent to suppliers.

Receipt Notes

Receipt Notes may also be entered in the same format as Delivery Notes, and with Purchase Order enabled, would automatically fill-up with the details of the order. Further, Purchase Invoices would also auto-fill with the Receipt Note or Purchase Order details as relevant.

Reminder Letters

Two paragraphs have been already provided which can be used as themselves or modified or extended. To view the reminder letter, simply print one out. Of course, you might want to make subtle changes thereafter. You may, as usual.

The two paragraphs are followed by the account of the customer. Ledger and Outstanding details with Age Analysis of pending invoices serve as strong reminders to pay promptly.

Confirmation Statements

Confirmation Statements are not the same as Reminder Letters. These serve to confirm the account balances with customers, suppliers, lenders and borrowers. Their use is most at period ends, but can be produced for any period, at anytime.

You may change the text as per your requirements.

General

This configuration is applicable for all print reports.

Print Date & Time of Report

Quick Format

Quick printing is suitable for Dot Matrix printers where speed is an issue. Hence, quick printing does not print fancy fonts. The auto-fit facility is, thus, not possible in quick printing.

Therefore, it will truncate data longer than the allotted space. To prevent this, set Yes for the two questions under Quick Format.

Payment/Receipt/Journal Vouchers, Credit Note/Debit Note

Configure the dimensions and details to print

Though the above options pertain to Payment Vouchers, those for other vouchers are similar.

Sales Invoice, Delivery Note and Sale Order/Quotation

The different configuration screens for each of the above follow:

Sales Invoice

This is the configuration for the Tally invoice. Change as necessary.

Delivery Note

Sales Order/Quotation

Print sales orders and quotations as you want by configuring the following: Sales Orders, if marked Optional, during voucher entry, are printed as Quotations.

Purchase Voucher/Invoice and Purchase Order

Purchase Voucher/Invoice

Purchase Orders

Purchase Orders are required to be printed and sent to suppliers.

Receipt Notes

Reminder Letters

The two paragraphs are followed by the account of the customer. Ledger and Outstanding details with Age Analysis of pending invoices serve as strong reminders to pay promptly.

Confirmation Statements

You may change the text as per your requirements.

Group Company

Accounts of different companies belonging to the same management or owners are normally required to be consolidated to present the financial position of the group of companies as a whole. In many developed countries, it is mandatory to consolidate group company accounts. Shareholders would first like to know the performance of the group as a whole and then only the performance of individual constituent companies.

Tally ies 7.2 makes consolidation of accounts that is ready an easy task at all times. The concept is simple yet so powerful (that is the hallmark of Tally, is it not?) that you can consolidate the accounts of any number of companies at any time, as well as keep them separate. You may virtually play around with bringing companies into the group and separating them at will. All this is done in a jiffy!

You have to create a Group Company. This is simply a name and an identity given to the merged accounts of constituent (member) companies of the group.

Note: Do not confuse Group to mean a member of the group! It is, in fact, just the opposite. It contains accounts of member companies.

You may even have a group company that includes other group companies. For example, assume that yours is a world-wide, trans-national organisation (or a 'group') headquartered in the UK having subsidiary companies in many countries around the world. The group has different lines of business. Let's say the businesses are Thread, Fashion Retail, Home Fabrics and Accessories. You would prefer to present your group accounts in grouped according to businesses which in turn are themselves grouped accounts of the different companies around the world. With Tally, it's easy!

The accounts structure would look something like this:

Create a Group Company

A group company can be created only for companies that have already been loaded . Hence, you must first load the companies whose accounts are to be grouped. The companies can be loaded automatically if specified in the TALLY.INI file (refer the Installation Manual for details). Alternatively, and what you would normally do, select the companies using F1:Select Cmp Button, e.g, the following companies have been selected as shown in the right portion of the Gateway of Tally screen:

Once the constituent companies are loaded, you can create your group company. Press <ALT>+F3 or click the button [F3: Create Cmp] Select Create Group Company

Enter the name (which is mandatory), address and tax details.

The members of the group have to be selected from the popup list.

Say, you have selected the two as given. Select End of List to finish selection.

The group company Thread will be created and loaded. It also becomes the active company. Notice the consituent companies are given below the group company and are slightly indented to distinguish the group company.

You can now display and print group accounts through the 'Thread' company.

Note: You are not permitted to go to the voucher level in the group company and hence are not allowed to create or alter vouchers.

Alter a Group Company

Simply follow the normal Alter method of a company for the Group Company as well.

A Group Company is marked with an asterisk.

You can select or de-select members through the Alter Mode. However, any change will come to effect only on shutting the group company and then reloading it. Obviously, the group company must contain at least two members.

Hence, it is possible to combine accounts of different companies at will.

Create as many group companies as you need.

A constituent company can be a member of more than one group.

A group company can also be a constituent of another group company.

For example,

By selecting the two group companies Thread and Fashion Retail, the new group company 'The World-wide Textiles Inc.' becomes the overall holding company.

Create a Group Company

Once the constituent companies are loaded, you can create your group company. Press <ALT>+F3 or click the button [F3: Create Cmp] Select Create Group Company

Enter the name (which is mandatory), address and tax details.

The members of the group have to be selected from the popup list.

Say, you have selected the two as given. Select End of List to finish selection.

You can now display and print group accounts through the 'Thread' company.

Note: You are not permitted to go to the voucher level in the group company and hence are not allowed to create or alter vouchers.

Alter a Group Company

Simply follow the normal Alter method of a company for the Group Company as well.

A Group Company is marked with an asterisk.

You can select or deselect members through the Alter Mode. However, any change will come to effect only on shutting the group company and then reloading it. Obviously, the group company must contain at least two members.

Hence, it is possible to combine accounts of different companies at will.

Create as many group companies as you need.

A constituent company can be a member of more than one group.

A group company can also be a constituent of another group company.

For example,

By selecting the two group companies Thread and Fashion Retail, the new group company 'The World-wide Textiles Inc.' becomes the overall holding company.

Monday, July 4, 2011

INTRODUCTION OF TALLY 7.2

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