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Instruction :

All are requested to attempt all Practical Assignment given after every Chapter with
the help of your own Tally.ERP9 Software, otherwise you will not able to display your
Reports and Statements. After going through all the Chapters, you can maintain 100%
independently of your Books of Accounts with Inventory with the help of your own
Tally.ERP9 Software.

Practice on your own Tally.ERP9 Software

To get you own version of the original legal version of Tally.ERP9 software to learn and
practice at your convenience , please download the Education Version of the software
(Free) from …

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Author:
Sanjay Satpathy
SWAYAM EDUCATION
Mandal Bagicha, Hemkapada,
Sunhat, Balasore,Odisha-756003 (INDIA)
eMail ID : [email protected]
Web : www.tallyerp9book.com
Mob - 9437264738

~~~~~~~~~~

Published & Print with New Update for the Year – 2020-21

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Tally.ERP 9
Table of Contents
CHAPTER-1
COMPANY CREATION
1.1. Company Creation: ........................................................................................................ 14
1.2. Opening (Loading) the Company in Tally.ERP9: ............................................................... 15
1.3. Modification | Update | Alter Company Details | Delete Company .................................. 17
CHAPTER-2
GST SETUP USING TALLY.ERP9
2.1. Activate GST for Your Company ...................................................................................... 18
2.1.1. Activate GST for Regular Dealers ......................................................................................... 18
2.1.2. Activate GST for Composition Dealers.................................................................................. 19
CHAPTER-3
SET-UP OF ACCOUNTS
3.1. Account Groups in Tally.ERP9 ......................................................................................... 21
3.1.1. Create Account Groups (under Single Group) one-by-one:................................................... 22
3.1.2. Create Multiple Groups in one-go (Multiple Groups) ........................................................... 22
3.1.3. Delete a Created Group (No Default Group) ........................................................................ 23
3.1.4. Advanced Configurations for Account Groups...................................................................... 23
Assignment-1
3.2. Ledgers in Tally.ERP9 ..................................................................................................... 26
3.2.1. Creating a Single LEDGER : ................................................................................................... 26
3.2.2 Displaying, Altering and Deleting Ledger Accounts................................................................ 28
3.2.3. Creating a Current Liabilities / Assets Ledger ....................................................................... 29
Assignment-2
3.2.4. Creating Bank Account Ledgers in Tally.ERP9 ................................................................. 30
Assignment-3
3.2.5. Creating Party Ledgers (Sundry Debtor / Sundry Creditor) ................................................... 31
Maintain Balances Bill-by-Bill & Default Credit Period (if you require) :...................................... 33
Define the Default Credit Period: .............................................................................................. 34
Cost Centre Options: ................................................................................................................. 35
Assignment-4
3.2.6. Creating GST Ledger ( CGST / SGST / IGST ) under Duty and Taxes Group. ............................ 37
Assignment-5
3.2.7. Creating Sales and Purchase Ledgers for GST Compliance:................................................... 38
I. Creating a Sales Ledger: Sales-GST/IGST (both for Local & Outside State) ........................... 39
II. Creating a Purchase Ledger: Purchase-GST/IGST (both for Local & Outside State) .............. 40

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Assignment-6
3.2.8. Creating Expenses and Income Ledgers without GST Compliance ....................................... 41
Assignment-7
3.2.9. Creating Service Ledger with GST Compliance ..................................................................... 43
Assignment-8
3.2.10. Creation of Ledger ‘Rounded off (+/-)’ for rounding the Invoice Value automatically. ........ 45
CHAPTER-4
INVENTORY / ITEMS & GOODS / STOCK
4.1. Creating a Single Stock Group ........................................................................................ 47
4.1.2. Displaying a Stock Group ..................................................................................................... 48
4.1.3. Modifying / Deleting a Single Stock Group ........................................................................... 48
4.2. Creating a Multiple Stock Group..................................................................................... 49
Assignment-9
4.3 Creation of Stock Units of Measure ............................................................................... 50
4.3.1. Simple Units of Measure ..................................................................................................... 50
4.3.2. Compound Units of Measure ............................................................................................... 51
4.3.3. Alternation / Deletion of Stock Units ................................................................................... 51
4.4. Creation of Single Stock Items one-by-one ..................................................................... 52
Setting GST Details in Stock Item ( Tax On Value)....................................................................... 53
Assignment-10
4.4.1. Setting Slab-wise GST Details in Stock Item (Tax On Item Rate) ........................................ 56
4.4.2. Setting MRP details in Stock Items ....................................................................................... 56
4.4.3. Setting ‘Nil-Rated’ , ‘Exempted’, ‘Zero Rated’ & ‘ Non-GST’ Items & Goods using Tally.ERP9 58
4.4.3.1. Setting Nil-Rated & Exempted items and Goods : .......................................................... 58
Assignment-11
4.4.3.2. Setting Non-GST Goods : ............................................................................................... 59
CHAPTER- 5
VOUCHERS in Tally.ERP9
5.1. Purchase Voucher (F9) ................................................................................................... 60
(A) Local Purchase (within State) ................................................................................................... 61
(B) Interstate Purchase (outside State) .......................................................................................... 62
(C) Purchase Voucher with some Additional Charges/ Discount etc. .............................................. 63
>> Additional Charges included before GST in Purchase Bill ....................................................... 63
>> Additional Charges included after GST in Purchase Bill.......................................................... 63
- Ledger Creation : ‘Insurance on Purchase’ & ‘Discount on Purchase’ ................................... 63
- Ledger Creation : ‘Rounded Off (+/-)’ ................................................................................... 64
>> Purchase Bill with Additional Charges / Discount both before and after GST ......................... 64
Assignment-12
5.1.1. Record Expenses with GST in Purchase Voucher (F9) ........................................................... 68

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Assignment-13
5.1.2. Purchase of Capital Goods with GST in Purchase Voucher (F9) ............................................. 70
Assignment-14
5.1.3. Purchase of ‘Nil-Rated’ , ‘Exempted’, Items & Goods using Tally.ERP9 ................................. 72
5.2. Purchase Return / Debit Note Voucher (Ctrl+F9) ............................................................. 73
(A) Item Invoice Mode : ................................................................................................................. 74
(B) Accounting Invoice Mode :....................................................................................................... 74
Assignment-15
5.3. Sales Invoice (F8) – ........................................................................................................ 76
5.3.1. Alter Pre-defined ‘Sale’ Voucher Types in Tally.ERP 9........................................................... 76
5.3.1.1. ‘General’ Setting in Voucher Type ................................................................................. 77
5.3.1.2. ‘Printing’ Setting in Voucher Type ................................................................................ 81
5.3.1.3. ‘Name of Class’ Setting in Voucher Type ...................................................................... 82
5.3.2. Voucher Classes for Sale Voucher ........................................................................................ 82
5.3.3. Sale Voucher with Item Invoice for GST Compliance ............................................................ 85
5.3.4. Sale of Goods and Services in a Single Invoice with multiple GST Rate. ................................ 86
5.3.5. GST Sale of a Composite Supply (Sale of Items & Goods with Expenses Apportioning) ........ 89
5.3.6. Sale of ‘Nil-Rated’ , ‘Exempted’, Supplies using Tally.ERP9 ................................................... 92
5.3.7. Ledger to Round-off the Invoice Value Automatically. ......................................................... 93
5.3.8. Zero Valued Entries.............................................................................................................. 94
Creating Zero Valued Entries ( Sale of Free Product ) ................................................................. 94
5.3.9. Different Actual and Billed Quantities .................................................................................. 94
5.3.10. Enable Item Rate (Inclusive of Tax) during Sale .................................................................. 95
1. Enable Item Rate (Inclusive of Tax) at the time of Item Creation / Alternation mode : ........... 96
2. Activation of Item Rate Inclusive of Tax in F12: Configuration during Sale Entry..................... 96
Assignment-16
5.3.11. Sale Voucher with Accounting Invoice for Service Ledger................................................. 104
(A) Sale Invoice with Service Charges within State (CGST / SGST) ............................................. 105
Assignment-17
(B) Sale Invoice with Service Charges Outside State (IGST) ....................................................... 107
Assignment-18
5.4. Sales Return / Credit Note ( Ctrl+F8)..............................................................................109
(A) Item Invoice Mode................................................................................................................. 109
(B) Accounting Invoice Mode ...................................................................................................... 110
Assignment-19
5.5. Contra Voucher (F4) .....................................................................................................111
(A) Cash Deposit Voucher .................................................................................................... 112
(B) Cash Withdrawal Voucher .............................................................................................. 112
(C) Fund Transfer Voucher ................................................................................................... 113

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Assignment-20
5.5.1. Voucher Classes for Contra Voucher .................................................................................. 113
(A) For ‘Cash Deposit’ Class under Contra Voucher .................................................................. 114
(B) For ‘Cash Withdrawal’ Class under Contra Voucher ............................................................ 115
(C) For ‘Fund Transfer’ Class under Contra Voucher ................................................................. 115
5.6. Payment Voucher (F5) ..................................................................................................117
5.6.1. Voucher Classes for Payment & Receipt Voucher ............................................................... 118
Assignment-21
5.7. Receipt Voucher(F6) .....................................................................................................125
5.7.1. Voucher Classes for Payment & Receipt Voucher ............................................................... 125
Assignment-22
5.8. Journal Vouchers (F7): ..................................................................................................129
Assignment-23

CHAPTER-6
GST Reports to File GST Returns
6.1. GSTR -1 Report in Tally.ERP9 ........................................................................................132
6.1.1. Return Summary View of GSTR-1 ....................................................................................... 132
6.1.1.1. Return Summary Information (GSTR-1 Report) ........................................................... 132
Total number of vouchers for the period ............................................................................. 133
Included in returns .............................................................................................................. 133
Not relevant for returns ...................................................................................................... 133
Incomplete/mismatch in information (to be resolved) – GSRT-1 .......................................... 134
6.1.1.2. Particulars Information (GSTR-1 Report) ..................................................................... 136
1. B2B Invoices - 4A, 4B, 4C, 6B, 6C ...................................................................................... 136
2. B2C(Large) Invoices - 5A, 5B............................................................................................. 136
3. B2C(Small) Invoices - 7..................................................................................................... 136
4. Credit/Debit Notes (Registered) - 9B ................................................................................ 137
5. Credit/Debit Notes (Unregistered) - 9B ............................................................................ 137
6. Exports Invoices - 6A........................................................................................................ 137
7. Tax Liability (Advances received) - 11A(1), 11A(2) ........................................................... 137
8. Adjustment of Advances - 11B(1), 11B(2) ........................................................................ 137
9. Nil Rated Invoices ........................................................................................................... 137
HSN/SAC Summary - 12 ....................................................................................................... 138
Document Summary - 13 ..................................................................................................... 138
6.1.2. View Summary of GSTR-1 Report ....................................................................................... 138
6.1.3. Export GSTR-1 Report from Tally.ERP9 in the JSON Format. ............................................... 139
6.2. GSTR -2 Report in Tally.ERP9 ........................................................................................140
6.2.1. Transaction Summary in GSTR-2 Report............................................................................. 141
Total number of vouchers for the period ................................................................................. 141

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Included in Returns ................................................................................................................. 141

Not included in returns due to incomplete information ........................................................... 142
Not relevant for returns .......................................................................................................... 142
Invoices with mismatch in information .................................................................................... 142
6.2.2. Particulars Information (GSTR-2 Report) ............................................................................ 142
1. B2B Invoices - 3, 4A ............................................................................................................ 142
2. B2BUR Invoices - 4B ............................................................................................................ 143
3. Import of Services - 4C ........................................................................................................ 143
4. Import of Goods - 5 ............................................................................................................ 143
5. Credit/Debit Notes Regular - 6C .......................................................................................... 143
6. Credit/Debit Notes Unregistered - 6C ................................................................................. 143
7. Nil Rated Invoices - 7 .......................................................................................................... 143
8. Advance Paid - 10A ............................................................................................................. 143
9. Adjustment of advance - 10B .............................................................................................. 143
10. ITC Reversal/Reclaim - 11 ................................................................................................. 143
HSN Summary of inward supplies - 13 ..................................................................................... 143
6.3. GSTR -3B Report in Tally.ERP9 ......................................................................................144
6.3.1. Return Format View of GSTR-3B Report ............................................................................. 144
6.3.1.1. Return Summary of GSTR-3B Report ........................................................................... 144
Total number of vouchers for the period ............................................................................. 145
Included in returns .............................................................................................................. 145
Not relevant for returns ...................................................................................................... 145
Incomplete/mismatch in information (to be resolved) – GSRT-3B ........................................ 146
6.3.1.2. Table Particulars (Computation details) as per GST Format of GSTR-3B Report ........... 147
3.1 Details of Outward Supplies and inward supplies liable to reverse charge ...................... 148
3.2 of the supplies shown in 3.1 (a) above, details of inter-Sate supplies made to unregistered
persons, composition taxable persons and UIN holders ....................................................... 149
4. Eligible ITC ....................................................................................................................... 150
5. Values of exempt, nil-rated and non-GST inward supplies................................................ 152
5.1 Interest and Late Fees Payable....................................................................................... 153
6.3.2. Summary View of GSTR-3B Report ..................................................................................... 153
6.3.3. Generate GSTR-3B Returns in the JSON Format to File from Tally.ERP9 ............................. 155
Print GSTR-3B Return in Word Format : ................................................................................... 155
6.4. GST Annual Computation Report in Tally.ERP9 ..............................................................156
6.4.1. Vouchers Recorded for the Period ..................................................................................... 157
6.4.1.1. Resolution of incomplete/incorrect details ................................................................. 158
6.4.2. Liability, Input Tax Credit, HSN/SAC Summary.................................................................... 162
Outward and Inward Supplies on Which Tax is Payable (Including Advances) ...................... 163

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Outward Supplies on Which Tax is not Payable .................................................................... 163

Input Tax Credit ................................................................................................................... 163
ITC Reversal and Ineligible ITC Declared............................................................................... 164
HSN/SAC Summary of Outward Supplies ............................................................................. 164
HSN/SAC Summary of Inward Supplies ................................................................................ 164
CHAPTER-7
e-Way Bill using Tally.ERP9
7.1. Setup e-Way Bill in Tally.ERP9 .......................................................................................165
7.2. Record invoice with details required for e-Way Bill, and create JSON .............................166
7.3. Step to generate e-Way Bill on the e-Way Bill Portal ......................................................168
7.4. Print the invoice with e-Way Bill number .......................................................................170
CHAPTER – 8
GST on Reverse Charge Mechanism (RCM)
8.1. Inward Supply of Goods & Service under GST Reverse Charge (RCM) ..............................172
8.2. Setup for Inward Supply under GST Reverse Charge .......................................................173
(A) Create Unregistered Supply Ledger under Sundry Creditor. ................................................... 173
(B) Create Local Expenses Ledger i.e. Freight & Cartage - Local” with 5% GST under RCM............ 174
(C) Create Expenses Ledger (IGST) with Reverse Charge Applicable ............................................. 175
(D) Create Items and goods as Reverse Charge Applicable........................................................... 175
8.2. View Total Tax Liability under GST Reverse Charge (RCM) in GSTR-3B & GSTR-2 Report ...177
8.3. Journal Voucher for Increase of Tax Liability & Input Tax Credit on Reverse Charge.........178
CHAPTER – 9
GST on Advance Received
9.1. GST on Advance Received from Customer if Turnover is more than Rs. 1.5 Crores ..........180
9.2. Advance Receipt from Customer against Sale of Goods and Services ..............................181
9.3. Journal Voucher to Raise GST Liability against Advance Received from Customer ............182
9.4. Reversing the GST Liability on Advance Receipt for Sales completed in the same month.184
(A) Sales Invoice Linked to an Advance Receipt Voucher ....................................................... 184
(B) Reverse Tax Liability on Advance Receipt for Sale completed in same month................... 185
CHAPTER - 10
Order Processing in Tally.ERP9
10.1. Purchase Order Processing in Tally.ERP9......................................................................187
10.1.1. Receipt Note Voucher (GRN) against Purchase Order ...................................................... 188
10.1.2. Purchase Voucher against Receipt Note Voucher (GRN) .................................................. 190
10.2. Sales Order Processing in Tally.ERP9 ............................................................................193
10.2.1. Delivery Note Against Sales Order ................................................................................... 194
10.2.2. Sale Invoice Against Delivery Note ................................................................................... 195

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CHAPTER – 11
Bill of Materials (BoM)
11.1. Setup Bill of Materials (BOM) ......................................................................................197
11.2. Creating a Manufacturing Journal ................................................................................200
CHAPTER – 12
Price Levels & Price List
12.1. Price Levels in Tally.ERP9 ............................................................................................201
12.1.1. Create Price Levels .......................................................................................................... 201
12.1.2. Assign Price Levels to Ledger Accounts ............................................................................ 202
12.2. Price List in Tally.ERP9 ................................................................................................203
12.3. Use Price Levels & Price List during Voucher Entry .......................................................205
CHAPTER – 13
Cost Centre and Cost Category
13.1. Creating Cost Category and Cost Centre ......................................................................207
13.2. Applying Cost Centres to Ledger Accounts ...................................................................208
13.3. Cost Centres Allocation in Voucher Entry .....................................................................209
CHAPTER-14
TDS (Tax Deducted At Source)
14.1. Enabling TDS in Tally.ERP9 .........................................................................................210
14.2. Creating TDS Nature of Payment ................................................................................211
14.3. Creating Master Ledger with TDS Transaction i.e. Expenses, Party Ledger, TDS Ledger .213
Step-1: Alter Expenses Ledger i.e. Rent Paid ............................................................................ 213
Step-2: Alter Party Ledger i.e. N. Jatania & Co ( Under Sundry Creditor) as below : .................. 213
Step-3 : Create TDS Ledger i.e. TDS on Rent............................................................................. 214
Step-4: TDS Transaction (Accounting for TDS on Expenses) ..................................................... 214
14.4. TDS on Advance Payment against Expenses .................................................................215
14.5. Recording Payment Transaction (TDS) .........................................................................215
CHAPTER-15
Optional & Non-Accounting Vouchers
15.1. Memo (Memorandum) Voucher ..................................................................................216
15.2. Optional Voucher .......................................................................................................218
15.3. Post-dated Voucher ....................................................................................................219
15.4. Reversing Journal .......................................................................................................220
15.5. Physical Stock Voucher (Alt + F10) ...............................................................................220
15.6. Stock Journal Voucher (Alt+F7) ....................................................................................221
Additional Cost on Purchase in Stock Journal :............................................................................. 222
15.6. Rejection In Voucher (Ctrl+F6) ....................................................................................222
15.7. Rejection Out Voucher (Alt+F6) ...................................................................................223

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CHAPTER – 16
REPORTS IN Tally.ERP9
16.1. Modifying Reports ......................................................................................................225
16.2. Display Financial Statements inTally.ERP9....................................................................228
16.2.1. Balance Sheet in Tally.ERP9 ............................................................................................. 229
Set Closing Stock Manually in the Balance Sheet ..................................................................... 230
16.2.2. Profit & Loss Account in Tally.ERP9 .................................................................................. 231
16.2.3. Receipts and Payments Report in Tally.ERP9.................................................................... 232
16.2.4. Trial Balance in Tally.ERP9 ............................................................................................... 233
16.3. Display Books, Registers and Ledgers...........................................................................234
16.3.1. Sales Register Report in Tally.ERP9 .................................................................................. 234
16.3.1.1. Columnar Sales Register............................................................................................ 235
16.3.1.2. Extract of Sales Register ............................................................................................ 236
16.3.2. Purchase Register Report in Tally.ERP9 ............................................................................ 236
16.3.3. Cash /Bank Book Report in Tally.ERP9.............................................................................. 238
16.3.4. Statement of Accounts Report in Tally.ERP9 .................................................................... 240
16.3.5. Journal Register Report in Tally.ERP9 ............................................................................... 242
16.3.6. Day Book Report in Tally.ERP9 ......................................................................................... 243
16.4. Display Inventory Reports and Statements...................................................................244
16.4.1. Stock Summary Report in Tally.ERP9................................................................................ 244
16.4.2. Stock Items Report in Tally.ERP9...................................................................................... 245
Viewing Stock Item Vouchers .................................................................................................. 246
16.4.3. Godown / Location Summary Report in Tally.ERP9 .......................................................... 246
16.4.4. Movement Analysis Report in Tally.ERP9 ......................................................................... 247
16.4.4.1. Movement Analysis (Stock Group Analysis) ............................................................... 248
16.4.4.2. Stock Item Movement Analysis ................................................................................. 248
16.4.4.3. Accounts Group Movement Analysis......................................................................... 249
16.4.4.4. Ledger Movement Analysis ....................................................................................... 249
16.4.4.5. Transfer (Movement) Analysis .................................................................................. 250
16.4.5. Stock Ageing Analysis Report in Tally.ERP9 ...................................................................... 251
16.4.5.1. Changing the Default Ageing Period .......................................................................... 252
Ageing Style ........................................................................................................................ 252
16.4.6. Sales and Purchase Order Report in Tally.ERP9 ................................................................ 252
16.5. Display Management Information System(MIS) Reports ...............................................253
16.5.1. Cost Centre Reports......................................................................................................... 253
16.5.2. Ratio Analysis Reports ..................................................................................................... 254
16.5.3. Cash Flow Reports ........................................................................................................... 256
16.5.4. Funds Flow Statement Reports ........................................................................................ 257

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16.5.5. Exception Reports ........................................................................................................... 258

16.5.5.1. Negative Stocks Report ............................................................................................. 259
16.5.5.2. Negative Ledgers Report ........................................................................................... 259
16.5.5.3. Memorandum Voucher Register Report.................................................................... 260
16.5.5.4. Reversing Journals Register Report ........................................................................... 260
16.5.5.5. Optional Vouchers Register Report ........................................................................... 260
16.5.5.6. Post Dated Vouchers Register Report........................................................................ 260
CHAPTER – 17
OTHER UTILITIES
17.1. Security Control ..........................................................................................................261
17.1.1. Set Password in Tally.ERP9 .............................................................................................. 261
17.1.2. Use Security Control ........................................................................................................ 262
17.1.2.1. Creating Users and Passwords .................................................................................. 262
17.1.2.1. Creating and Setting Up Voucher Type Security for Users.......................................... 263
17.1.3. TallyVault Password......................................................................................................... 264
17.2. Year-end Processing & Moving Company Data to Next Financial Year ...........................266
17.2.1. Change Current Period .................................................................................................... 266
17.2.2. Create New Company and Import the Opening Balances ................................................. 267
Export closing balances from old company .............................................................................. 267
Import Masters of closing balances as opening balances in new company ............................... 267
17.3. Splitting Company Data based on Financial Year ..........................................................268
17.4. Group Company in Tally.ERP 9.....................................................................................269
Creating a Group Company ......................................................................................................... 269
CHAPTER – 18
Shortcut Keys in Tally.ERP 9

~~~~~~~~~~~~~~~~~

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PRACTICAL ASSIGNMENT

ASSIGNMENT-1 [COMPANY CREATION] ......................................................................................276

ASSIGNMENT-2 [GST ACTIVATION] ............................................................................................276
ASSIGNMENT-3 [ACCOUNT GROUPS CREATION] ............................................................................276
ASSIGNMENT-4 [CREATING LIABILITIES / ASSETS LEDGER] ...............................................................277
ASSIGNMENT-5 [CREATING P ARTY LEDGERS – SUNDRY CREDITOR / SUNDRY DEBTOR] ..........................279
ASSIGNMENT-6 [CREATING GST LEDGERS – ( IGST / CGST / SGST ) ] ..............................................280
ASSIGNMENT-7 [CREATING SALES & PURCHASE LEDGERS ] ..............................................................280
ASSIGNMENT-8 [CREATING INCOME & EXPENSES LEDGERS ] ............................................................280
ASSIGNMENT-9 [CREATING STOCK GROUP ] .................................................................................282
ASSIGNMENT-10 [CREATING UNIT OF MEASUREMENT ] ..................................................................282
ASSIGNMENT-11 [CREATING STOCK ITEMS / P RODUCTS / GOODS ] ...................................................282
ASSIGNMENT-12 [ALTERING VOUCHERS CLASS – SALES I.E . GST ].....................................................283
ASSIGNMENT-13 [ENTERING P URCHASE VOUCHER ] .......................................................................284
ASSIGNMENT-14 [ENTERING P URCHASE VOUCHER TO RECORD EXPENSES] ..........................................285
ASSIGNMENT-15 [P URCHASE VOUCHER OF NIL-RATED, EXEMPTED ITEMS] .........................................286
ASSIGNMENT-16 [ENTER PURCHASE RETURN / DEBIT NOTE VOUCHER] ..............................................286
ASSIGNMENT-17 [ENTER SALE VOUCHER] ....................................................................................287
ASSIGNMENT-18 [SALE VOUCHER OF NIL-RATED, EXEMPTED ITEMS] .................................................288
ASSIGNMENT-19 [ENTER RECEIVED VOUCHER] .............................................................................289
ASSIGNMENT-20 [ENTER P AYMENT VOUCHER] .............................................................................290
ASSIGNMENT-21 [ENTER CONTRA VOUCHER – CASH DEPOSIT, CASH WITHDRAWAL, FUND TRANSFER] .....291
ASSIGNMENT-22 [ENTER JOURNAL VOUCHER] ..............................................................................292
ASSIGNMENT-23 [RANDOM VOUCHER ENTRY MONTH-WISE FROM MAY 2020] ...................................293
MAY - 2020 .........................................................................................................................293
JUNE - 2020 ........................................................................................................................294
JULY - 2020 .........................................................................................................................295
AUGUST - 2020 ...................................................................................................................297
SEPTEMBER – 2020 .............................................................................................................299

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

CHAPTER-1
COMPANY CREATION
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

1.1. Company Creation:

You can create a Company profile by using the following procedure :
1. Gateway of Tally.ERP 9 →Create Company (from opening screen)
2. Gateway of Tally.ERP 9 →Alter ( Alt+F3) → Create Company
It provides the following screen:

Finally, confirm company creation by pressing the ENTER key/ “Y” key to accept all declaration for the
Company. (Now you will be able to work with the Current Company)
Books and Financial Year Details:

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 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.

a) TallyVault : 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) User Access : 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.

1.2. 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.

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

Gateway of Tally Gateway of Tally
(Accounts-Only) (Accts with Inventory)

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)

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

Button Bar.

1.3. Modification | Update | Alter Company Details |

Delete Company
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 + A 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.

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

CHAPTER-2
GST SETUP USING TALLY.ERP9
2.1. Activate GST for Your Company
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%
by manufacturers, 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.

2.1.1. Activate GST for Regular Dealers

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.
1. Open the company for which you need to activate GST.
2. Press F11: Features > F3: Statutory & Taxation.

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

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

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

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)

2.1.2. 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 .

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

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.

CHAPTER-3
SET-UP OF ACCOUNTS
The next process is setting up/classification of Accounts. The entire Accounts group is classified into
four entities:
Contents of ‘Accounts Info’ Menu
The ‘Accounts Info’ menu consists of the following options:

After Configuration of the Features from F11 key the Accounts Info menu will look like as shown here…

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

3.1. Account Groups in Tally.ERP9

Groups are collection of ledgers of the same nature. Account groups are maintained to determine the
hierarchy of Ledger Accounts, which is helpful in determining and presenting meaningful and
compliant reports. Using this you can generate reports, which are meaningful as well as compliant
with laws.
At the highest level, accounts are classified into Capital or Revenue – and more specifically into
Assets, Liabilities , Income and Expenditure .
Tally.ERP9 provides you with 28 Pre-defined Groups, of these 15 are Primary Groups and 13 are Sub-
Groups . You can also create your own groups, either as Sub-groups or Primary Groups.
The lowest level would be the Ledger Account. All Voucher entries are passed using ledgers.
Tally.ERP 9 has Pre-Defined Ledgers for Cash (under Cash-in-hand group) and for the Profit & Loss A/c
(under primary group).

15 Primary Groups 13 Sub Groups

Branch / Divisions Bank Accounts

Capital Account Bank OD A/c

Current Assets Cash-in-hand

Current Liabilities Deposits (Asset)

Direct Expenses Duties & Taxes

Direct Incomes Loans & Advances (Asset)

Fixed Assets Provisions

Indirect Expenses Reserves & Surplus

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

Indirect Incomes Secured Loans

Investments Stock-in-hand

Loans (Liability) Sundry Creditors

Misc. Expenses (ASSET) Sundry Debtors

Purchase Accounts Unsecured Loans

Sales Accounts

Suspense A/c

Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheets that are Capital in
nature and 6 Primary Groups appear under Profit & Loss account which are Revenue in nature
13 Sub-Groups are classified under the 15 Primary Groups and they appear in the Balance Sheet.

3.1.1. Create Account Groups (under Single Group) one-

by-one:
1. Go to Gateway of Tally > Accounts Info. > Groups > Create ( under Single Group )
2. After giving Name to the Group, In the field Under , from the List of Groups displayed, select
the parent group under which the group has to be classified.
For example, Indirect Expenses .

A new group created under primary will not be reflected in reports until you pass masters/transactions
for that group.
You can also View any Groups… [Note: In the display mode, group details can't be modified.]
Go to Gateway of Tally > Accounts Info. > Groups > Display ( under Single Group ).
You can also Alter / Modify any Groups …
Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ) .

3.1.2. Create Multiple Groups in one-go (Multiple Groups)

You can create, edit or delete multiple groups in Tally.ERP 9.
1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple Groups).

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

2. Select the group category in the field Under .

3. Enter the Name of the group. The screen appears as shown below:

4. Select All Items in the field Under to create multiple groups of different categories.
A new group created under primary will not be reflected in reports until you pass masters /
transactions for that group.

3.1.3. Delete a Created Group (No Default Group)

Groups can be deleted from the alteration screen. You cannot delete groups from the Multiple group
Alteration mode.
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ).
2. Select the group from the List of Groups .
3. Click D : Delete .
4. Click Yes to confirm deletion.

3.1.4. Advanced Configurations for Account Groups

1. Go to Gateway of Tally > Accounts Info > Groups > Create (Single Group) .
2. Select F12: Configure (Group Configuration) and enable Allow advanced entries in masters.

The group creation screen with advanced options is displayed as shown below:

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 A Practical Hands-on Self-Study Approach Tally.ERP 9 Book

In the Group Creation screen

1. Enter a name for the group.
2. Enter a group category. If a group is created under Primary you must select from asset,
expenses, income or liability.
3. Select the Nature of Group .
4. Select Yes for the option Group behaves like sub-ledger? to allow groups to act as a ledger.
 When the option Group behaves like sub-ledger? is set to No , all the ledgers that are grouped
is displayed in detailed mode.
 When the option Group behaves like sub-ledger? is set to Yes , the ledgers grouped under the
same is not displayed in detailed mode.
5. Set Nett Debit/Credit Balances for Reporting? to Yes to display net debit or credit balance in
the report (whichever is higher).
6. Set Used for Calculation (e.g. taxes, discounts)? to Yes if ledgers under this group have
percentages for discounts or taxes to be used in invoice entry. This is displayed while passing
voucher in invoice mode and for automatic calculations.
7. Select Method to Allocate when used in Purchase Invoice from the Allocation Methods list to
allocate the expense of the item in the ratio of the quantity or value.

Practical Assignment-1

Create the Following Groups under various Pre-defined Groups (already given) :

Sundry Debtor (pre-defined) : Sundry Creditor (pre-defined) :

Corporate Customer Local Creditor

Local Customers Outside Creditor (IGST)
Outside Customers Other Creditor
Wholesale Customer

Indirect Expenses (pre-defined): Indirect Income (pre-defined):

Salaries & Staff Expenses Other Income

Administrative Expenses Interest Earning
Selling & Distribution Expenses

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