Topic 1: Basic concepts –

1. Company creation

Double click on tally icon > Work in educational mode > Alt+F3> Create company.

In this page we have to information on 3 different points.

a) Give the name of company

b) Select the country name i.e INDIA

c) Select the name of state i.e West Bengal

After filling up these 3 points press (CTRL+A)

In case of last 2points the names can be selected from the list shown in the right hand side.

2. Deleting a company – Click on cmp info from the right hand side list> Alter> select the
name of the company which you want to delete> Enter> you will reach the page of company
creation> Alt+D > Yes> Yes> enter

3. Altering details of a company – Gateway of tally > cmp info >select company> choose the
company > alter > enter. The company creation page opens up. Now make the changes you
want & Ctrl+A.

4. Deleting entry – Gateway of tally> Display > Day book > Select the entry > Alt+D > Yes.

5. Deleting a ledger account – Gateway of tally> Display > Account books > Ledger > Select
the ledger account > Select the entry > Enter > Alt+D > Yes.

6. Repeating a narration – Ctrl +R.

7. Configuration F11 – it applies only for the company in which you are working. For eg. if
your machine has 3 companies A, B & C and you opened company C make any change in
configuration F11, such change will be reflected in company C only and not in company A &
B.

8. Configuration F12 – It applies to all the companies present in tally. For eg. if your machine
has 3 companies A, B & C and you opened company C make any change in configuration F12,
such change will be reflected in all the companies A, B & C.
9. Moving forward & backward – To move forward in tally we always use enter and to move
backward we use either Esc or backspace. To see various options available (if not shown in
tally) we press the spacebar.

10. Changing date – Gateway of tally > F2

11. Creation of Cash balance – Before starting anything freshly in tally always ensure that
you have a healthy cash balance. If not then Gateway of tally > Accounts info > ledger > single
ledger > Alter > Select cash > Give opening balance.

Topic 2: Stock creation

In this portion we will cover

a) Creation of stock groups, stock categories & stock items

b) Godown creation

c) Deleting godowns

d) Viewing stocks created

e) Godown transfer

f) View godown wise report & category wise report

Before starting this chapter we should have a brief idea about stock groups, stock categories &
stock items.

When stock group is garments then stock categories will be gents, ladies & kids and stock items
will be jeans & shirts for gents, sarees & salwars for ladies, and frocks and half pants for kids.

When stock group is cold drinks then stock categories will be 300ml, 500ml, 1lt, & 2lts. Stock
items will be the different brands like Pepsi, coke, Thumps up etc.

Step 1: Change in configuration

Gateway of tally> F11> Inventory features> Maintain multiple godowns (Yes)> Enter>
Maintain stock categories (Yes) > enter > Ctrl+A

Step 2: Creation of stock groups, stock categories and unit of measure

Gateway of tally> Inventory info> Stock groups > create > name of the inventory (garments)>
under (primary)>should quantities be added (Yes) >enter
Gateway of tally> Inventory info> Stock categories > create > name of the category (gents)>
under (primary)> name of the category (ladies)> under (primary)> name of the category (kids)>
under (primary)

Gateway of tally> Inventory info>units of measure > create >Symbol (Pcs)>formal name
(Pieces)>enter>enter

Step 3: Creation of godown & deleting of godowns

Creating Godowns

Gateway of tally > Inventory info>godowns >create> give the name of godown (Uttarpara)>
under primary > our stock with third party (No) > third party stock with us >No > enter> enter

Create another godown in these way with the name Dunlop.

Deleting godowns

Gateway of tally> Inventory info>Alter> select the godown to be deleted > Alt+D> Yes

Here you will observe a godown already created by Tally for us under the name ‘Main
Location’.

Step 4: Creation of stock items

Gateway of tally> Inventory info> Stock items > create > name of the item (saree)> under
(stock group garments)> category (ladies)> units > (select Pcs)>set components (BOM)>
No>opening balance> give quantity (1000)> select godown (Uttarpara)> select rate
(Rs.2000)>enter>enter

Similarly create stock items frock (1000 pcs @ Rs.500 each) under category kids and jeans
(1000pcs @ Rs.1800 each) under category gents. Keep the frocks in Uttarpara godown and
jeans in Dunlop godown.

Step 5: View report

Gateway of tally > stock summary> garments > select any one (jeans, saree or frock) > enter

Step 6: Godown transfer

Gateway of tally> Inventory voucher> stock journal (Here you will observe that in stock
journal there are two parts – left part is the source section & right part is the destination
section)> spacebar> select the component you want to transfer(saree) > spacebar> select the
godown (from the list that appears in the right hand side) where the item now exits (uttarpara)>
give the quantity (500pcs)> give rate (Rs.2000)> enter >enter> name of the item (saree)> press
space bar >select the godown to which the item is to be transfer(Dunlop).give quantity
(500pcs)>give rate (Rs2000)>enter>enter

Similarly transfer 500pcs of frocks from uttarpara godown to Dunlop godown and transfer
200pcs of jeans from Dunlop godown to uttarpara godown.

Step 7: View report

Godown wise report

Gateway of tally >display> statement of inventory> godown>select godown>enter

Category wise report

Gateway of tally >display> statement of inventory>categories >select the category > enter

Topic 3: Purchase order & Sales order

Part A: Purchase order
Step 1: Configuration
F11 > Inventory features >
a) Enable zero value entries > Yes
b) Maintain multiple godown > yes
c) Enable purchase order processing > yes
d) Enable sales order processing > yes
e) Use debit & credit note > yes
f) Record credit note in invoice mode > yes
g) Record debit note in invoice mode > yes
h) Use tracking no. > Yes
Step 2: Placing Purchase order
Gateway of tally > order vouchers > select F4 from right hand side > purchase order > Alt + C
> Give party name > under sundry creditors > Maintain bill by bill (yes) > Ctrl + A > supplier
details window pops up > Ctrl + A > give order no. > Alt + C > give name Purchase > under
purchase > inventory values affected (yes)> Ctrl + A > Alt +C > give name of the item to be
purchased > units > Alt + C > Symbol > Formal name > set components (BOM) > No > Enter
> Give due date that is the date of receiving order > space bar > select godown from the list
shown in the right hand side or create Godown using Alt + C > give quantity > do not mention
rate and amount.
Step 3: Checking order
Gateway of tally > Display > Statement of inventory > Purchase order outstanding > Stock
item > Select the item > Enter > Enter
Step 4: Challan receipt note
Receipt note is issued at the time of receiving the goods. Change the date & give date as per
date given as due date while placing purchase order.
Change the date. The date should be the due date given in step 2.
Gateway of tally > Inventory voucher > Click on F9 shown in right hand side > Receipt note >
Give reference no. (same as purchase order) > Give party name > Select order no. > Ctrl +A >
select purchase in purchase ledger > Select the item from the right hand side list >
Select tracking no. > Give order no. > Godown & quantity already selected rate & amount will
not be mentioned > Enter > Enter > Enter

Step 5: Report viewing

It can be done in 2 ways
Firstly
Gateway of tally > Report > Stock summary
Secondly
Gateway of tally > Display > Statement of inventory > Purchase order outstanding > stock item
> Select the item

Step 6: Bill / invoice generation

Change the date and give any date post to the date mentioned in challan.
Gateway of tally > Accounting voucher > Click on F9 (purchase) shown in right hand side list
> Give invoice no. > Select the name of the party from the right hand side list > Give receipt
note no. > Order no is automatically selected > Ctrl + A > Give tracking no. other item are
automatically selected > put the rate & amount > Enter > Enter > Enter

Step 7: Payment
Change the date and give any date post to the date mentioned in bill/invoice.
Gateway of tally > Accounting voucher > Select payment option from right hand side (F5)>
Select the name of the party from the list show in the right hand side > Put amount > Put
reference > Select against reference > Select the details shown as pending bills > Select cash >
Enter > Enter

Step 8: Report
Firstly to check whether there is any outstanding payment remaining
Gateway of tally > Display >statement of accounts > outstanding > payables
Secondly check the inventory
Gateway of tally > Display > inventory books > Stock item > select the item > Enter
Also check through profit & loss a/c & balance sheet.

Part B: Sales order

Step 1: Placing Sales order
Gateway of tally > order vouchers > select F5 from right hand side > Sales order > Alt + C >
Give party name > under sundry debtors > Maintain bill by bill (yes) > Ctrl + A > buyer details
window pops up > Ctrl + A > give order no. > Alt + C > give name Sales > under Sales >
inventory values affected (yes)> Ctrl + A > Spacebar > select the item to be sold > Give due
date that is the date of delivery > space bar > select godown from the list shown in the right
hand side > give quantity > do not mention rate and amount.
Step 2: Checking order
Gateway of tally > Display > Statement of inventory > Sales order outstanding > Stock item >
Select the item > Enter > Enter
Step 3: Delivery note
Delivery note is issued at the time of delivering the goods.
Change the date. The date should be the due date given in step 2.
Gateway of tally > Inventory voucher > Click on F8 shown in right hand side > Delivery note
> Give reference no. (same as sales order) > Give party name > Select order no. > Ctrl +A >
select sales in sales ledger > Select the item from the right hand side list >
Select tracking no. > Give order no. > Godown & quantity already selected rate & amount will
not be mentioned > Enter > Enter > Enter
Step 4: Report viewing
It can be done in 2 ways
Firstly
Gateway of tally > Report > Stock summary
Secondly
Gateway of tally > Display > Statement of inventory > Sales order outstanding > stock item >
Select the item

Step 5: Bill / invoice generation

Change the date and give any date post to the date mentioned in delivery note.
Gateway of tally > Accounting voucher > Click on F8 (sales) shown in right hand side list >
Give invoice no. > Select the name of the party from the right hand side list > Give delivery
note no. > Sales ledger (sales)> select the tracking no. > Other items automatically selected >
put the rate & amount > Enter > Enter > Enter
Step 6: Receipt
Change the date and give any date post to the date mentioned in bill/invoice.
Gateway of tally > Accounting voucher > Select receipt option from right hand side (F6)>
Select the name of the party from the list show in the right hand side > Put amount > Select
against reference > Select the details shown as pending bills > Select cash > Enter > Enter

Step 7: Report
Firstly to check whether there is any outstanding receipt
Gateway of tally > Display >statement of accounts > outstanding > receivables
Secondly check the inventory
Gateway of tally > Display > inventory books > Stock item > select the item > Enter
Also check through profit & loss a/c & balance sheet.

Note : Maintain same number for order no. , tracking no. , challan no. , invoice no. , & delivery
note no.

Topic 4: Cost category & cost centre

Cost centre refers to an organizational unit to which costs or expenses can be allocated during
transactions while the cost category is used to accumulate costs or profits for parallel sets of
cost centres.For example, we can use cost centre to track expenses of each employee while cost
category can be used to see the effectiveness of each project.

Cost category is used to accumulate costs or profits for parallel sets of cost centres.
Here we will learn about cost category & cost centre in two different ways – one is normally
and the other one is pre defined cost centre.

Eg. of cost category – commission paid , advertisement, rent etc.

Eg. of cost centre for commission may be Mr. A , Mr. B, & Mr. C to whom the commission is
paid. Similarly for advertisement cost centres may be TV, internet, magazines, radio etc. And
finally for rent cost centres may be rent paid to house1, house2, house3 etc.

Step 1 : Change in configuration

Gateway of tally> F11> Accounting features> Maintain cost centre(yes) > maintain more than
one payroll or cost category> yes> Ctrl+A

Step 2 : Creation of cost category & cost centre

Gateway of tally> Accounts info> Cost category> Create> give category name (commission)>
Allocate revenue items(yes)> Allocate non revenue items (No)

Gateway of tally> Accounts info> Cost centre> Create> category> select commission from
options given in the right hand side> give name (Mr.A)> under (primary)> enter > enter

Similarly make cost centres – Mr. B & Mr. C

Step 3: Ledger creation

Gateway of tally> Accounts info> Ledger> Create> give the name of ledger
(commission)>under (select indirect expenses from options given in the right hand side)>cost
centre applicable (yes)> Ctrl+A

Step 4: Journal entry

Gateway of tally> Accounting vouchers >select commission (from options given in the right
hand side)> give amount (Rs.30000)> spacebar> select commission > spacebar > select Mr.
A>give amount (Rs.15000)> enter> spacebar> select Mr. B> give amount (Rs.10000) >enter>
spacebar > select Mr. C>give amount (Rs.5000)> enter>enter> Cr> Cash (from options given
in the right hand side) >enter > enter

Step 5: Report viewing

Gateway of tally> display> statement of accounts> cost centre> category summary> enter

Pre-defined cost centre

Here we will segregate the expenditure into percentage. In the previous part we carried out the
problem with commission as indirect expenditure. Here we take the example of rent as cost
category & assume there are 3 houses – House 1, House 2 & House 3.These 3 houses are cost
centres.

Step 1, Step 2 & Step 3

same as above with rent as cost category & House 1, House 2 & House 3 as cost centres.

Step 4: Change in configuration for pre defined cost centre

F11>Accounting feature> use pre defined cost centre allocation for transaction (yes)> enter>
class name( rent)> enter> select rent (from options given in the right hand side)>select house1
>give percentage (50%)>select house> give percentage (30%)>select house3> give percentage
(20%)>enter>enter>Ctrl+A

Step 5: Journal entry

Accounting vouchers > cost centre/classes> spacebar> select rent (from options given in the
right hand side)>Dr rent (select from options given in the right hand side)>give amount
(Rs.50000)> enter > Cr cash (Rs.50000)>enter > press page-up> enter

You will see the break up of the cost.

Topic 5: Bill of materials (BOM)

A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies,
subassemblies, parts and components, as well as the quantities of each, needed to manufacture
a product.
In a nutshell, it is the complete list of all the items that are required to build a product. A BOM
is sometimes also referred to as a product structure, assembly component list or production
recipe (in process manufacturing industries).

Step 1: Creation of manufacturing journal

Accounts info > Voucher types > create > Give name (mfg journal) > select type of journal
(stock journal from right hand side list) > method of voucher numbering > automatic > use as
mfg journal > yes > Enter > Enter
Step 2: Change in configuration
F12 > Accounting / Inventory info > enable component list details > yes
Step 3: Create item of raw materials
Gateway of tally > inventory info > multiple stock items > create >. Under group > Alt+C >
give name (Raw materials ) > should quantities be added > yes > give name of the items, units
> Alt+C > give symbol (pcs) and formal name (Pieces) > give opening quantity, rate & amount.
Note :While preparing items if raw material, BOM should be made NO. This option will arise
when we create items of raw materials from single stock items.
Step 4: Create finished goods
Gateway of tally > inventory info > single stock item > create > give name (1) > under Alt +
C > give name finished goods > units (pcs) > set components (BOM) > yes > name of BOM >
give name (2) > unit of manufacture > 1 > select raw materials from the list shown in the right
hand side and give the quantity needed to produce one unit of finished goods > select all items
one by one > Enter > Enter
Note 1: opening balance of finished goods, rate per unit and value should be nil.
Note 2: Note that the name that you will give in the first line as mentioned by ‘give name (1)’
should be different from the name that you will give in third line as mentioned in ‘give name
(2)’. For example if you are manufacturing PC, in the first case give name PC & in the second
case, give name computer. In case of laptop, the first name will be laptop & second name
computer. In case of manufacturing chair, the first name should be ‘chair’ & second name
furniture. Both the names should be different always.
Step 5: Making the bill of material (Final Step)
Gateway of tally > inventory voucher > stock journal > Alt + F7 > select manufacturing journal
> name of the product > select the name of the finished goods from right hand side list > give
the quantity that is the no. of units to be produced > observe that in the left hand side all the
components are automatically displayed with total > pressing enter continuously come to the
right hand side under type of additional cost > Alt+C > give the name such as handling charges
> under indirect expenses > Enter > Enter > come to the manufacturing journal > give the
percentage > Enter > create another item of expense such as carriage > Enter > Enter

Topic 6: Budgets & Control

Part A: Budget for a group of items of expenditure
Step 1: Configuration
F11> accounting features>Maintain budgets & control (Yes)
Step 2: Set budget
Gateway of tally>accounts info > Budget > Create >Give the name (Direct/Indirect
expenditure)>under > primary > Give period > Set/ alter budgets of groups > Yes > Enter > a
new window pops up > Account name to be selected from the list (Direct/Indirect expenses) >
type of budget > on Closing balance > Give budgeted amount (1) > Enter.
Set/alter budget of ledgers > yes > A new window pops up > Give account names (for example
rent, electricity, commission, advertisement etc. for indirect expenses & wages, materials etc.
for direct expenses) > Type of budget > on closing balance > Give amount > Enter > repeat for
each item of expenditure.
Note: Remember that the sum total of all the amounts that you are giving in second stage should
be equal to the budgeted amount that you have given in (1).
Step 3: Pass journal entries
Gateway of tally>accounting voucher > Select payment mode > Pass the entries
Step 4: Checking budget
Gateway of tally > Profit & loss Account > Select the group (Direct/Indirect expenses) >
Detailed > Down arrow/key to the first item > Enter > Alt+B > Select indirect expenses >
similarly follow the steps for other items of direct/indirect expenses.
Part B: Budget for a single of item of expenditure
Step 1: Configuration
F11> accounting features>Maintain budgets & control (Yes)
Step 2: Set budget
Gateway of tally>accounts info > Budget > Create > A new window pops up > Give the name
of the expenditure for which the budget is made >under > primary > Give period > Set/ alter
budgets of groups > No > Set/alter budget of ledgers > yes > a new window pops up > Give
the name of the expenditure for which the budget is made > type of budget > on Closing balance
> Give budgeted amount > Enter.
Step 3: Pass journal entries
Gateway of tally>accounting voucher > Select payment mode > Pass the entries
Step 4: Checking budget
Gateway of tally > Profit & loss Account > Indirect expenses > Enter > Select the ledger for
which the budget is made > Alt+B > A new window pops up > Select item from right hand
side list.
Topic 7: Memorandum voucher
Concept: Memorandum Vouchers is a non-accounting voucher and the entries made using
the memo voucher will not affect your accounts. In other words, Tally does not post these
entries to ledgers but stores them in a separate Memorandum Register.
Step 1: Configuration
F11 > Accounting features > Reversing journal & optional vouchers > yes.
Step 2: Pass Journal entry
Gateway of tally > Accounting vouchers > Memos > Pass the journal entry
Step 3: Viewing the effect
Gateway of tally > Profit & loss Account > Direct/Indirect expenses > Detailed
Step 4: To make the journal entry effective
Gateway of tally > Display > Exception reports > Memorandum vouchers > Enter > Enter >
Select the appropriate mode (receipt/ payment/ journal/ contra) > Ctrl+A.
Again go to Gateway of tally > Profit & loss Account > Direct/Indirect expenses > Detailed.
Now you will find that the effect of the journal is reflected in the profit & loss account.

Topic 8: Bank Reconciliation Statement (BRS)

Steps:
Gateway of Tally > Display > Accounts book > Cash/Bank books > Bank Accounts > Select
the bank (in this page at the bottom, you will observe that the discrepancy as per books of the
company & books of the bank are shown) > F5 (Reconcile) > Put dates for all the transactions
in the column mentioned as bank date > Enter.
After reconciliation go back to Gateway of tally & repeat the same steps. On clicking F5, you
will see a blank page. At the bottom of this page you will see balance as per books of the
company matches with the bank.
Alternative approaches
1. Gateway of Tally > Display > Banking > BRS > Bank Accounts > Select the bank (in this
page at the bottom, you will observe that the discrepancy as per books of the company & books
of the bank are shown) > Put dates for all the transactions in the column mentioned as bank
date > Enter.
2. Gateway of Tally > Display > Accounts book > Ledgers > Select the bank (in this page at
the bottom, you will observe that the discrepancy as per books of the company & books of the
bank are shown) > F5 (Reconcile) > Put dates for all the transactions in the column mentioned
as bank date > Enter.

Topic 9: Back up & Restore

Step 1: Create a folder in any drive
Go to any drive of the computer > create a folder where you want to keep the back up of your
company > Go inside the folder > Click on the path after the name of the folder > Copy the
path (Ctrl+C) or (Ctrl+Alt+C).
Step 2: Back up
Gateway of tally > Cmp info > Back up > Destination > Erase the path given > Paste the copied
path (Ctrl+Alt+V) > Enter > Select the company from the RHS list > Go to end list > Enter >
Enter.
Step 3: Checking transfer
Go to the folder created in step 1 & check the transfer
Step 4: Delete the Company from tally
Click on cmp info from the right hand side list> Alter> select the name of the company which
you want to delete> Enter> you will reach the page of company creation> Alt+D > Yes> Yes>
enter.
Step 5: Restore
Gateway of tally > Cmp info > Restore > Paste the path of the source (the folder where the data
of the company is kept as back up) > Select the name of the company from the RHS list > End
list > Enter > Enter.
Step 6: Check the presence of the company in tally
Check whether the company is properly restored back in tally.

Topic 10: Import & Export of data

Step 1:
Go to the company whose data we want to export > Display > Day books > Click on ‘Export’
Displayed on top, the notification bar > press N > Make the following changes
Language > Default (all languages)
Format > XML
Export location > No Change
Output file name > No Change
Open exported folder > No Change
Format > Condensed
Remaining all items > Yes
Select vouchers to show > all vouchers
As you press enter automatically the folder where the data is exported pops up, minimize it.
Step 2: Create a new company
Gateway of tally > Cmp info > Create company > Give required details
Step 3: Import
Gateway of tally > Import data > Vouchers > Give the name of the file to be imported (You
can see the name of the file from folder mentioned in the last line of step 1).
Step 4: Checking the transfer
Gateway of tally > Display > Day books.

Topic 11: Goods & Services Tax (GST)

Module – 1: Goods
Part A: Intra State Purchases & Sales
Step 1: Configuration
F11 > Statutory & Taxation > enable GST (yes) > Set/alter GST details (Yes) > A new window
pops up > Make the following changes

Ω State > No change

Ω Registration type > Regular
Ω Assessee of other territory > No
Ω GSTIN > Give no.
Ω Periodicity of GSTR – 1 > Monthly
Ω E – way bill > Yes
Ω Set/ alter GST details > No
Ω Enable GST classification > Yes

Ctrl +A

Step 2: Making ledgers

A) Purchases
Gateway of Tally > Accounts info > create > Purchases > under > Purchases > Is GST
applicable > yes > Set/ alter GST details > Yes > New window pops up > Make the following
changes

→ Classification > Undefined

→ Nature of transaction > Purchase Taxable
→ Taxability > taxable
→ Integrated tax > 18% (Assumed)
→ Cess > 0%

Type of supply > Goods > Enter

B) Sales
Gateway of Tally > Accounts info > create > Sales > under > Sales > Is GST applicable > yes
> Set/ alter GST details > Yes > New window pops up > Make the following changes

→ Classification > Undefined

→ Nature of transaction > Sales Taxable
→ Taxability > taxable
→ Integrated tax > 18% (Assumed)
→ Cess > 0%

Type of supply > Goods > Enter

C) Sundry Creditors
Gateway of tally > Accounts info > Ledgers > Create > Give name of the party > under sundry
creditors > maintain bill by bill > Yes > Registration type > regular > GSTIN > Give no. > Set/
alter GST > Yes > A new window pops up > Make the no changes > Enter > Enter.
D) Sundry Debtors
Gateway of tally > Accounts info > Ledgers > Create > Give name of the party > under sundry
debtors > maintain bill by bill > Yes > Registration type > regular > GSTIN > Give no. > Set/
alter GST > Yes > A new window pops up > Make the no changes > Enter > Enter.
E) CGST
CGST > under > Duties & Taxes > Types of duty/ tax > GST > Tax type > Central tax >
Percentage of calculation > 9% (assumed) > Ctrl +A
D) SGST
SGST > under > Duties & Taxes > Types of duty/ tax > GST > Tax type > State tax >
Percentage of calculation > 9% (assumed) > Ctrl +A
E) Product
Gateway of tally > Inventory info > Stock items > Create > Give the name of the item > Give
units of measurements > Set components (BOM) > No > GST applicable > applicable >
Set/alter GST details > Yes > A new window pops up > Make the following changes

Ω Classification > undefined

Ω Calculation type > On value
Ω Taxability > Taxable
Ω Integrated tax > 18%
Ω Cess > 0%

Type of supply > Goods > Ctrl +A

Step 3: Passing Journal entry

A) For purchases
Gateway of tally > Accounting voucher > Select Purchase from R.H.S > use invoice mode >
Give party name > A new window pops up > Make no change > Purchase ledger > Purchase >
Select the item using space bar > give quantity & rate > Enter > enter > space bar > Select
CGST > Enter > Space bar > Select SGST > Enter > Enter > Page up (to show details)
A) For sales
Gateway of tally > Accounting voucher > Select sales from R.H.S > use invoice mode > Give
party name > A new window pops up > Make no changes > Sales ledger > Sales > Select the
item using space bar > give quantity & rate > Enter > enter > space bar > Select CGST > Enter
> Space bar > Select SGST > Enter > Enter > Page up (to show details)
Step 4: Checking
There are two ways of checking.
1st way: Gateway of Tally > Display > Statutory Reports > GST > GSTR 2 > Enter.
2nd way:
To check CGST
Gateway of Tally > Balance sheet > current liabilities > Duties & taxes > CGST > Enter >
Enter.
To check SGST
Gateway of Tally > Balance sheet > current liabilities > Duties & taxes > SGST > Enter >
Enter.

Part B: Inter State Purchases & Sales

Step 1: Configuration
F11 > Statutory & Taxation > enable GST (yes) > Set/alter GST details (Yes) > A new window
pops up > Make the following changes

Ω State > No change

Ω Registration type > Regular
Ω Assessee of other territory > No
Ω GSTIN > Give no.
Ω Periodicity of GSTR – 1 > Monthly
Ω E – way bill > Yes
Ω Set/ alter GST details > No
Ω Enable GST classification > Yes

Ctrl +A

Step 2: Making ledgers (Must follow this sequence)

A) Product
Gateway of tally > Inventory info > Stock items > Create > Give the name of the item > Give
units of measurements > Set components (BOM) > No > GST applicable > applicable >
Set/alter GST details > Yes > A new window pops up > Before making any changes here,
click on F12 > Another window pops up > Make the following changes

 Allow HSN/SAC details > Yes

 Set type of goods > Yes
 Enable reverse charges applicable > No
 Show all GST tax types > Yes

> Enter. Now we go back to the previous window & make the following changes.

Give description (about the product) > Give HSN/SAC > Give any number > Is non GST goods
> No > Calculation type > On value > Taxability > Taxable > Give rate of Integrated Tax.

Type of supply > Goods > Rate of duty > Give the same of rate of Integrated Tax > Ctrl +A
 Note:

HSN: HSN stands for Harmonized System of Nomenclature which was developed by the
World Customs Organization (WCO) with the vision of classifying goods all over the World
in a systematic manner.

SAC: The SAC code means Services Accounting Code under which services fall
under GST are classified.

HSN code and SAC code are the codes used to classify goods and services under GST regime
in India. The above information is about difference between HSN number and SAC number
under GST in India.

The taxpayers who have turnover below the limit of Rs 1.5 Crore will have to mention the
description of goods/service in place of code. Whereas, the description is optional for taxpayers
who are required to furnish HSN/ SAC codes on the basis of aggregate turnover as below:

• Less than Rs. 1.5 crores – HSN/SAC code is not mandatory (Hence, composition dealers
may not be required to specify HSN at 2-digit level also).
• Rs. 1.5 crores to Rs. 5 crores – HSN code at minimum 2 digit chapter level is mandatory.
SAC code is mandatory.
• Above Rs. 5 crores – HSN code at minimum 4 digit chapter level is mandatory. SAC code is
mandatory.
• For export turnover, 8-digit HSN code is mandatory irrespective of any of the above 3
categories.

B) Purchases
Gateway of Tally > Accounts info > create > Purchases > under > Purchases > Is GST
applicable > yes > Set/ alter GST details > Yes > New window pops up > Make the following
changes

→ Description > Goods

→ Give HSN/SAC no.
→ Is non GST goods > No
→ Nature of transaction > Interstate purchase taxable
→ Integrated tax > Give rate

Ctrl + A
Type of supply > Goods > Enter

C) Sales
Gateway of Tally > Accounts info > create > Sales > under > Sales > Is GST applicable > yes
> Set/ alter GST details > Yes > New window pops up > Make the following changes

→ Description > Goods

→ Give HSN/SAC no.
→ Is non GST goods > No
→ Nature of transaction > Interstate sales taxable
→ Integrated tax > Give rate

Ctrl + A

Type of supply > Goods > Enter

D) Sundry Creditors
Gateway of tally > Accounts info > Ledgers > Create > Give name of the party > under sundry
creditors > maintain bill by bill > Yes > Country > India > State > Give any state other than
West Bengal > Registration type > regular > GSTIN > Give no. > Set/ alter GST > Yes > A
new window pops up > Make only one change

• Assessee of other territory > yes > Enter > Enter.

E) Sundry Debtors
Gateway of tally > Accounts info > Ledgers > Create > Give name of the party > under sundry
debtors > maintain bill by bill > Yes > Country > India > State > Give any state other than
West Bengal > Registration type > regular > GSTIN > Give no. > Set/ alter GST > Yes > A
new window pops up > Make only one change

• Assessee of other territory > yes > Enter > Enter

F) IGST
CGST > under > Duties & Taxes > Types of duty/ tax > GST > Tax type > Integrated tax >
Percentage of calculation > 18% (assumed) > Ctrl +A
Step 3: Passing Journal entry
A) For purchases
Gateway of tally > Accounting voucher > Select Purchase from R.H.S > use invoice mode >
Give party name > A new window pops up > Make no change > Purchase ledger > Purchase >
Select the item using space bar > give quantity & rate > Enter > enter > space bar > Select
IGST > Enter > Enter > Enter > Page up (to show the details)
A) For sales
Gateway of tally > Accounting voucher > Select sales from R.H.S > use invoice mode > Give
party name > A new window pops up > Make no changes > Sales ledger > Sales > Select the
item using space bar > give quantity & rate > Enter > enter > space bar > Select IGST > Enter
> Enter > Enter > Page up (to show details)
Step 4: Checking
There are two ways of checking.
1st way: Gateway of Tally > Display > Statutory Reports > GST > GSTR 2 > Enter.
2nd way:
To check IGST
Gateway of Tally > Balance sheet > current liabilities > Duties & taxes > IGST > Enter > Enter.
Module – 2: Services