Tally - ERP9 Book With GST
Tally - ERP9 Book With GST
Sales Return or Rejection out or Inward Invoice: Sales return means the return of
the full or a part of the goods sold by the customer to the businessman.
Assets: Assets are the things and properties possessed by a businessman not for
resale but for the use in the business.
Liabilities: All the amounts payable by a business concern to outsiders are called
liabilities.
Creditor: Creditor is the person to whom amounts are owed by the businessman.
Drawings: Drawings are the amounts withdrawn (taken back) by the businessman from
his business for his personal, private and domestic purpose. Drawings may be made in
the form cash, goods and assets of the business.
Trail Balance: It is a statement of all the ledger account balances prepared at the end
of particular period to verify the accuracy of the entries made in books of accounts.
Profit and loss account: It is prepared to ascertain actual profit or loss of the business.
Personal account: Personal accounts are the accounts of persons, firms, concerns
and institutions which the businessmen deal.
Real Account: These are the accounts of things, materials, assets & properties. It has
physical existence which can be seen & touch.
Ex. Cash, Sale, Purchase, Furniture, Investment etc.
Nominal account: Nominal account is the account of services received (expenses and
Losses) and services given (income and gain)
Ex. Salary, Rent, Wages, Stationery etc.
Account with Inventory: This is the default option, which allows maintaining both
the financial account of the company as well as the inventory of the company.
Shut Company: It is used to close the company which is opened. Shortcut key -
Alt+F1.
Alter: It is used to make alterations in the company creation like name, date,
maintain etc.
Ctrl+A To accept a form wherever you use the key combination the screen
or report will be accepted as it is on this screen.
Ctrl+Q It quits the screen without making any changed to it.
F2 Date
Current asset:
It is converted into cash with in a year. Ex. Bills receivable
Direct expenses:
These are the expenses which are directly related to manufacturing of
goods. Ex. Wages, factory rent, heating, lighting etc
Indirect expense:
These are the expenses which are indirectly related to manufacturing of
goods. Ex. Salary, rent, stationery, advertisement, printing
Ledger Group
Opening stock Stock in hand
Purchase Purchase account
Purchase return Purchase account
Fright charges Direct expenses
Carriage inwards or Purchases Direct expenses
Cartage and coolie Direct expenses
Octroi Direct expenses
Manufacturing wages Direct expenses
Coal, gas, water Direct expenses
Oil and fuel Direct expenses
Factory rent, insurance, electricity, lighting and heating Direct expenses
Sales Sales account
Salary Indirect expenses
Postage and telegrams Indirect expenses
Telephone charges Indirect expenses
Rent paid Indirect expenses
Rates and taxes Indirect expenses
Insurance Indirect expenses
Audit fees Indirect expenses
Interest on bank loan Indirect expenses
Interest on loans paid Indirect expenses
Bank charges Indirect expenses
Legal charges Indirect expenses
Printing and stationery Indirect expenses
General expenses Indirect expenses
Sundry expenses Indirect expenses
Discount allowed Indirect expenses
Carriage outwards or sales Indirect expenses
Traveling expenses Indirect expenses
Advertisement Indirect expenses
Bad debts Indirect expenses
Repair renewals Indirect expenses
Motor expenses Indirect expenses
Depreciation on assets Indirect expenses
Interest on investment received Indirect income
Interest on deposit received Indirect income
Interest on loans received Indirect income
Commission received Indirect income
Discount received Indirect income
Rent received Indirect income
Dividend received Indirect income
Bad debts recovered Indirect income
Profit by sale of assets Indirect income
Sundry income Indirect income
Loan from others Loan Liabilities
Bank loan Loan Liabilities
Bank overdraft Bank OD
Bills payable Current Liabilities
Sundry creditors Sundry creditors
Mortgage loans Secured loans
Expense outstanding Current Liabilities
Income received in advance Current Liabilities
Other liabilities Current Liabilities
Capital Capital account
Drawings Capital account
Cash in hand Cash in hand
Cash at bank Bank account
Fixed deposit at bank Deposit
Investments Investments
Bills receivable Current asset
Sundry debtors Sundry debtors
Closing stock Stock in hand
Stock of stationery Current asset
Loose tools Fixed asset
Fixtures and fittings Fixed asset
Furniture Fixed asset
Motor vehicles Fixed asset
Plant and machinery Fixed asset
Land and building Fixed asset
Leasehold property Fixed asset
Patents Fixed asset
Goodwill Fixed asset
Prepaid expenses Current asset
Income outstanding Current assset
To Profit and loss account: Actual profit and loss of the business
Indirect expenses or payments Amount Indirect income or receipts Amount
To Salary xxx By Gross profit xxx
To Postage and Telegram xxx By Interest on investment received xxx
To Telephone charges xxx By Interest on deposit received xxx
To Rent paid xxx By Interest on loans received xxx
To Rate and taxes xxx By Discount received xxx
To Insurance paid xxx By Discount received xxx
To Interest on bank loan xxx By Rent received xxx
To Bank charges xxx By Bad debts received xxx
To Printing and stationery xxx By Net loss xxx
To Discount allowed xxx
To Advertisement
To Carriage outward (sales)
To Depreciation on assets
To General expenses
To Traveling
To Bad debts
To Net profit
1. On 1-4-06 Raman commenced business with cash of Rs. 25,00,000. He further introduced
Land and Building costing Rs. 30,000, Plant and Machinery costing Rs. 25,000 and furniture
and fixture costing Rs. 36,000.
2. On 2-4-06 Purchased Vehicle and Patents Rs. 20,000 and Rs. 15,000.
T-Shirts Lee-25Pc-Rs.200
Nike-30Pc-Rs.300
Formal Shirts Pan America-35Pc-400
Peter England-30Pc-450
Jeans Pants Tiger-20Pc-500
Ruff and Tuff-30Pc-350
Cotton Pants Arrow-40Pc-200
Ex-Calibar-20Pc-250
5 Stars
Kitkat Chocolate
Cadbury
Dairy milk
Moov
D’Clod
Adhensive tape rolls Medicines
Band Aid box
Boric Acid powder
Lee T-Shirts
Nike
Arrow
Ex-Calibar Cotton Pants
Journalize the following Transactions using the debit and credit
given by the American accounts
Ledger Group
A Sundry creditor
B Sundry debtor
C Sundry creditor
D Sundry debtor
Ledger Group
Capital Capital account
Bank Bank account
Purchase Purchase account
Anil Sundry Creditor
Chandan Sundry Creditor
Harish Sundry Creditor
Purchase return Purchase account
Naveen Sundry Creditor
Sales Sales account
Guptha Sundry debetor
Commission Indirect expenses
Wages Direct expenses
Drawings Capital account
Manju Sundry Creditor
Anand Sundry Creditor
Haridas and company
Ledger Group
Capital Capital account
Furniture Fixed asset
Machinery Fixed asset
Purchase Purchase account
Anil Sundry Creditor
Sales Sales account
Rajesh Sundry debtor
Arun Sundry creditor
Ramesh Sundry debtor
Salary Indirect expenses
Printing Indirect expenses
Wages Direct expenses
Rent Indirect expenses
Commission Indirect expenses
Ganesh Sundry creditor
Trade discount Indirect expenses
Memorandum book
Particulars
1. Commenced business with cash Rs. 10,000.
2. Purchased goods for cash Rs.3,000.
3. Opened a bank account with Rs.2,000.
4. Purchased stationary Rs.1,00.
5. Purchased furniture Rs.1,000.
6. Sold goods to A Rs.2,000.
7. Purchased goods from B Rs.2,000.
8. Sold goods for cash Rs.1,000.
9. Paid for postage Rs.20.
10. Took loan from C Rs.1,500.
11. Paid rent Rs.300.
12. Withdraw from bank Rs.800.
13. Received from A on account Rs.500.
14. Paid commission by cheque Rs.200.
Ledger Group
Capital Capital account
Purchase Purchase account
Bank Bank account
Purchase Purchase account
Stationary Indirect expenses
Furniture Fixed asset
Sales Sales account
A Sundry debtor
B Sundry Creditor
Potage Indirect expenses
C Sundry Creditor
Rent Indirect expenses
Commission Indirect expenses
Roa and company
Particulars Rs.
1. Bought goods for cash 2,500
2. Bought office furniture for cash 500
3. Paid for postage 10
4. Purchased goods from Rajkamal 2,000
5. Sold goods for cash 150
6. Bought goods from Rahim 400
7. Sold goods to Suresh 400
8. Sold goods to Nayak 250
9. Purchased goods for cash 400
10. Recevied cash from Nayak 200
11. Paid cash to Rahim 50
12. Returned goods to Ralkamal 200
13. Suresh returned goods 50
14. Paid salary 150
15. Sold goods for cash 500
16. Rao withdraw for his personel use 800
17. Paid for stationery 100
18. Paid rent 50
19. Received commission 225
Ledger Group
Capital Capital account
Purchase Purchase account
Postage Indirect expenses
Rajkamal Sundry Creditor
Sales Sales account
Rahim Sundry Creditor
Suresh Sundry Debtor
Nayak Sundry Debtor
Purchase returns Purchase account
Salary Indirect expenses
Drawings Capital account
Stationary Indirect expenses
Rent Indirect expenses
Commission Indirect income
Creating a Company
Creating a Company involves providing basic information about the company whose books of
accounts are to be maintained in Tally.ERP 9.
Directory
The data path where you want the company to be created is specified in the Directory field.
This field is skipped by default when you create the company in the data path given in
the Tally.INI file. If you want to change it, use the Backspace key and modify it to the path
required.
This is referred to as the Tally Anywhere concept – which is the ability to create/load companies in
separate directories. The Directory field is displayed while selecting 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 Backspaceto give a new path
and work from there.
For example, the default Tally.ERP 9 data directory could be C:\TALLY.ERP\DATA. You may now
wish to create a new company on C:\TALLY.ERP\PERSONAL, and some other companies on
C:\TALLY.ERP\BRANCHES. The next time, the default directory displays C:\TALLY.ERP\DATA, and if
you wish to work on the data of your branches, press Backspace and enter
C:\TALLY.ERP\BRANCHES for the directory name. This displays the companies whose data is stored
in that location in the List of Companies. You can even give the path of a network server or any
other storage device.
If your business uses Tally.Server 9 to maintain data,
Not e: If the admi ni strator has e nabl e d Securi ty Acce ss, use rs ne e d to provi de the
authori se d Tal l y.NET cre denti al s i n order to acce ss the Se rve r Li st.
Name
Enter the name of the company whose books are being opened. If you are a professional accountant
and are maintaining the books of your clients, give the Client Company's name.
Mailing Name and Address
In addition to the Company Name, Tally.ERP 9 provides the facility to enter the Mailing Name field.
It displays the Company Name by default. You may change it as required, if the mailing name is
different from the Company Name. The mailing name and address details are picked up for inclusion
in any report that needs the company name and address as heading. For example: Balance Sheets,
Statement of Accounts, and so on.
Tally.ERP 9 does NOT restrict the number of lines for the address details. Tally.ERP 9
accommodates all the entered information and vertically compresses the same.
Not e: In the space provi ded for the Addre ss de tail s, obse rve the ve rti cal
compre ssi on as compare d to the Mail i ng Name fi el d whe re the re i s hori zontal
compre ssi on.
Y ou can spe ci fy any l e ngth for the mai li ng name and you are pe rmi tte d to gi ve any
numbe r of l i ne s for the addre ss. The i nformati on i s compl e tel y vi si ble .
Tall y.ERP 9 handl e s compre sse d i nformati on corre ctly w hil e pri nti ng. It adj usts the
re ports accordi ngl y.
Select the Country from the List of Countries. The Statutory Features and Base Currency Symbol
are enabled in accordance with the country selected. For example, if the accounts belong to a
company in India, the base currency would be Indian Rupees. The Base Currency will appear with
respect to the Country selected.
Selecting India from the List of Countries brings up a State, Pin Code and Telephone No. field.
State
You can select the appropriate state from the predefined list.
PIN Code
Specify the PIN Code (Postal Index Number) of the specified address.
Telephone
Mobile No
E-mail Address
Enter the E-mail address that will be used to e-mail documents, reports and data from Tally.ERP 9.
Set this to Yes, if you want to enable the automatic backup of Tally.ERP 9 data (per company). Else, set
this to No. The data backup is stored in the data folder of the respective company. The auto backup data
can be restored by pressing Ctrl+Alt+Kfrom Company Info menu or Gateway of Tally.
Currency
Currency symbol is the symbol of the base currency, that is, the currency that will be used to
maintain the books of account.
The symbol ` appears by default in case India for India/SAARC Companies and the field is left blank
for International Companies.
Not e: The currency sym bol change s base d on the country se le cte d from the l ist
for S t at ut ory com pli ance f or fi el d.
Maintain
Tally.ERP 9 displays a drop down for the Type of Company with two options Accounts
only and Accounts with Inventory
Select Accounts only if you do not have any inventory transactions (suitable for professionals and
corporate offices).
However, at a later date (if required) you can choose to alter the information as Accounts-with-
Inventory. SelectAccounts-with-Inventory, to maintain both financial accounts and inventory.
Financial Year From
In most countries, the books of accounts of a company are maintained for a stipulated period like,
12 months, 15 months, and so on. This stipulated period is referred to as the Financial Year.
The stipulated period of the financial year is 12 months in most countries. Tally.ERP 9 automatically
considers 12 months from the date you give here as the Financial Year.
For example, if you enter April 1, 2008 as the date, the Financial Year will be from April to March
ending with March 31, 2009. If you enter October 1, 2008 as the Financial Year From then the
financial year will be from October 2008 to September 2008 ending with 30th of September every
year.
Tally.ERP 9 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)
Tally.ERP 9 presumes that you wish to maintain books from the beginning of the financial year.
Hence, Tally.ERP 9 displays the date given in Financial Year From field automatically.
The date for Books beginning from can be changed, in case of companies, which are incorporated in
the middle of the year. If your company is new, you can opt 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 as specified by you. Tally.ERP 9 provides the required flexibility in such a case by
allowing you to give the date when the books of accounts actually began. Tally.ERP 9 will open
books from this date and close as on the last day of the Financial Year.
For example, if your company is established on August 19, 2008, the opening balances for all the
accounts can be given as on August 19, 2008 even though the Financial Year given is April 1, 2008
(April to March financial year). The company's books will begin on August 19, 2008 and close on
March 31, 2009, which ensures smooth transition to the next year.
This concept can be applied even when you are migrating to Tally.ERP 9 from any other system or
from a manual accounting system on any day during the Financial Year. Close books in that other
system on the previous day and start books on Tally.ERP 9 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 involves converting normally accessible Tally information into unrecognisable
information, which can only be reconverted by authorised persons.
Give a password here and repeat the same in the Repeat field. This basically results in the creation
of an encrypted company whose information is not accessible to users other than the password
holder.
Password Strength
Password Strength indicator is available in Tally.ERP 9 from Release 4.5 onwards. Now, strength
is displayed while creating / altering passwords under Security Control, Tally Vault, and Control
Centre. Also when Password Policy is enabled, Password Strength is indicated in the Change
Password screen that appears for first time login.
Let us understand the logic used by Tally.ERP 9 to ascertain a password’s strength. This logic
consists of two sets of conditions to be applied.
A. Password Score
Set this to Yes, if you want to initiate a password-protected system to control access to Tally.ERP 9
data. Else, set this to No.
If you opt for security control, Tally.ERP 9 offers a comprehensive password based access control to
different features of Tally.ERP 9 based on authority lists created by the Administrator. For more
information refer Data Management in Tally.ERP 9.
Assuming the Tally Vault Password and Use Security Control is set to Yes enter the Name of
Administrator, Password andRepeat in the respective fields.
Tally Audit allows the administrator or an auditor profile user to track changes in accounting
information. If you wish to use this facility, select Yes. Tally Audit will be available only to the
administrator/auditor, through Display of Statements of Accounts.For more information refer Data
Management in Tally.ERP 9.
Set this option to Yes, if you don't want the company to be opened in Educational mode of
Tally.ERP 9. Else, set this to No.
On accepting the company creation screen, if you have specified Tally Vault password, Tally.ERP 9
prompts you to enter the TallyVault password as appears:
Then Tally.ERP 9 prompts you to enter the Name of User and Password (if any).
After verification Tally.ERP 9 imports the latest statutory masters. Wait till the screen shows that
100% of import is complete.
This completes the Company Creation process in Tally.ERP 9.
An explanation on the fields on the bottom of the Company creation screen follows:
The Base Currency Information is found in the bottom frame of the Company creation Screen.
Base Currency is the currency in which your accounts would be maintained. Financial statements
are prepared in the base currency by default and these are normally required to be submitted to
local statutory authorities. The Base Currency information in Tally.ERP 9 varies with the country
selected for Statutory Compliance.
You can record transactions and raise invoices in foreign currency; and also maintain bank accounts
or ledgers in foreign exchange, when required.
The currency symbol given earlier in the Company Creation screen is displayed here
automatically.
The Formal Name for the base currency is set to Indian Rupees for Indian Companies.
The number of decimal places for the base currency is set to 2, by default. However, you have the
option of specifying up to 4 decimal places. Indian currency has 2 decimal places whereas certain
other countries require 3 decimal places and so on.
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)
This is useful for companies, which require reporting the financial statements in millions. This is
possible only if Allow Multi-Currency is enabled in F11: Accounting Features.
This facility is provided to users who require a space between the amount and the symbol.
However, putting a space between the amount and symbol could give an opportunity for misuse
incase of cheque printing. Hence, the flexibility to turn this option on and off as required is
provided.
You can specify the number of decimal places for printing the amount in words. This number
should be equal to or lesser than the number specified in Number of Decimal places field in
company creation or currency master screen which will appear in Invoice and Cheque printing
screen.
For example, if the currency is expressed upto 3 decimal places, the numeric to be printed in words
can be restricted to 2 decimal places.
Not e: The Nam e of t he Com pany, cannot be translate d or transli te rate d but w il l
appe ar i n the
Loading a Company
In order to load a company using the Select Company option, disable the default loading of a
company in Tally.ini file. SetDefault Companies to No OR place a semi-colon before Load = 00001
(company number - placing a semicolon means that the words following it in that line would not be
executed. Each line is a separate command).
You can use the Select Company option in two ways, from the Company Info. Menu OR by using
the button F1: Select Cmp(available on the Gateway of Tally screen).
Select Company
Select Company option allows you to load another company from the list of companies listed which
you may have created earlier.
Press Enter on Select Company or use the button F1: Select Cmp. Tally.ERP 9 displays the
following screen:
If your business uses Tally.Server 9 to maintain data,
Not e: If the admi ni strator has e nabl e d Securi ty Acce ss, use rs ne e d to provi de the
authori se d Tal l y.NET cre denti al s i n order to acce ss the Se rve r Li st.
1. Company Name (All the companies created are displayed in an alphabetical order)
3. The Financial Year information relating to the number of years data present in the
company
Not e: The syste m- ge ne rate d code for e ach company i s di spl aye d to assist you in
i de nti fyi ng whi ch company you w i sh to w ork on i n case you have mul ti ple compani e s
w i th the same name ( as displ aye d i n the above scre en) .
Select the required company from the list given to go to the Gateway of Tally for that company.
In case two or more companies are loaded , click on the company which you need to work on so that the
selected company will be highlighted and will appear on top of the list.
Shut a Company
Shut a Company is 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 Companymenu option on the Company Info. Menu.
Alter a Company
This option allows you to alter information about the existing company, you can modify any
information at any time that is set while creating a company.
Go to Gateway of Tally
2. Select Alter and press Enter and the screen appears as shown below:
3. Select the company from the List of Companies and press Enter to view the Company
Alteration screen.
4. Make the necessary changes in the required fields and accept the screen.
4. Enter the Old Password and Accept the screen to alter the company.
Not e: To unde rstand the condi ti ons that de termi ne a Passw ord's stre ngth,
cl ick Passw ord S t rengt h Indi cat or.
Delete a Company
1. Select F3: Cmp Info. (ALT+F3) from the Gateway of Tally to proceed to the
Company Information menu.
4. Use Alt + D to delete. Tally.ERP 9 will prompt for a confirmation on deleting the
company.
Not e: D e le ti on of a company i s i rre ve rsi ble . The company i s pe rmane ntl y del eted
from the syste m.
Pre-defined Groups in Tally.ERP 9
By default, Tally.ERP 9 provides a list of Groups called pre-defined groups. The user can create
any number of Primary Groups and Sub Groups which are again grouped under a Primary
Group/Sub Group.
There are 28 pre-defined Groups in Tally.ERP 9, out of which 15 are Primary Groups and 13
are Sub-Groups.
Out of the 15 Primary Groups, 9 Primary Groups appear in the Balance Sheet which 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.
By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit and Loss
Account (direct Primary Account). You need to create all other accounts heads. There are no restrictions in Ledger
creation except that you cannot create another Profit & Loss A/c. Any number of Cash Accounts may be created in
any other name for ex: Petty Cash.
The creation of a Ledger depends on the features you have selected under F11: Features of your company and F12:
Configure. You can create a single ledger account with the default options enabled.
Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger > Create
Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all in. Press Enter
to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names. The uniqueness check is made
here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its recognition of a
name. Thus, CST, C.S.T. and C. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data entry.
Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias name.
Under
All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is
created from the List of Groups. (To create a new Group from this field press [ALT + C]). A wrong classification
would affect the treatment of the Ledger account in final statements and during voucher entry.
You can, alter a Ledger account to change its group classification at any time. Refer Importance of Grouping and
Accounting Classifications: for more details in Grouping
Opening Balance
If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance would be
applicable in circumstances where the Ledger is an asset or a liability and if it has a balance in the account as on
the date of beginning of books in Tally.ERP 9.
Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances for
Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have balances.
Tally.ERP 9, however, permits you to give balances even for such accounts - You may be transferring your books
on to Tally.ERP 9 in the middle of the year and may not have closed them in your earlier system. Hence, you may
specify whether the balance is Debit or Credit. Simply D orC would suffice.
Go to Gateway of Tally > Accounts Info > Ledgers > Multi Ledgers> Create
Go to Gateway of Tally > Accounts Info > Ledgers > Ledgers> Display
Go to Gateway of Tally > Accounts Info > Ledgers > Ledgers> Alter
By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and Profit and Loss
Account (direct Primary Account). You need to create all other accounts heads. There are no restrictions in Ledger
creation except that you cannot create another Profit & Loss A/c. Any number of Cash Accounts may be created in
any other name for ex: Petty Cash.
The creation of a Ledger depends on the features you have selected under F11: Features of your company and F12:
Configure. You can create a single ledger account with the default options enabled.
Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger > Create
Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all in. Press Enter
to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names. The uniqueness check is made
here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its recognition of a
name. Thus, CST, C.S.T. and C. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up data entry.
Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias name.
Under
All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is
created from the List of Groups. (To create a new Group from this field press [ALT + C]). A wrong classification
would affect the treatment of the Ledger account in final statements and during voucher entry.
You can, alter a Ledger account to change its group classification at any time. Refer Importance of Grouping and
Accounting Classifications: for more details in Grouping
Opening Balance
If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance would be
applicable in circumstances where the Ledger is an asset or a liability and if it has a balance in the account as on
the date of beginning of books in Tally.ERP 9.
Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances for
Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have balances.
Tally.ERP 9, however, permits you to give balances even for such accounts - You may be transferring your books
on to Tally.ERP 9 in the middle of the year and may not have closed them in your earlier system. Hence, you may
specify whether the balance is Debit or Credit. Simply D orC would suffice.
1) In Balance Sheet Report click Alt+F1 to see the normal Balance Sheet in
detail:
Lesson Objectives
On completion of this lesson, you will be able to
In accounting terms, a voucher is a document containing the details of a financial transaction. For
example, a purchase invoice, a sales receipt, a petty cash docket, a bank interest statement, and so
on. For every such transaction made, a voucher is used to enter the details into the ledgers to update
the financial position of the company. This feature of Tally.ERP 9 will be used most often.
Tally.ERP 9 follows the Golden Rule of Accounting :
You can alter these vouchers to suit your company, and also create new ones. Read ahead to
understand the function of each voucher type. The following exercises are sample enteries for
understanding Voucher entry in Tally.ERP 9, do not make these entries.
84
Voucher Entry in Tally.ERP 9
Payment Voucher
Description Records all bank and cash payments
Voucher Entry Account Amount Amount
Ledger account paid Debit
Kaltronic Ltd.
(Sundry Creditors)
Bank or cash account Credit
State Bank of India
(Bank Account)
Voucher Entry in Tally.ERP 9
The entry made in the single entry mode appears as shown below:
The advantage of a single entry mode is that you can select multiple debits or credits depending
on the type of entry. Similarly the transactions can be recorded in single entry mode even in
Receipt and Contra vouchers.
In addition to the warning, Tally.ERP 9 also displays the negative balance amount in Red.
Receipt Voucher
Description Records all receipts into bank or cash accounts
Voucher Entry Account Amount Amount
Ledger account receiving Bank Credit
Interest
(Indirect Incomes)
Bank or cash account Debit
Deposit Account
Voucher Entry in Tally.ERP 9
Memo Voucher
Description Records the voucher entries in a memo register, without
affecting the ledger accounts and financial statements
Voucher Entry Account Amount Amount
Ledger account Debit
Ledger account Credit
Optional Voucher
Description Records voucher entries temporarily, to help visualise the effect
on reports, without affecting the ledgers
Voucher Entry Account Amount Amount
Ledger account Debit
Ledger account Credit
Go to the Gateway of Tally > Accounts Info. > Voucher Types > Create.
1. Name: Bank Payment
2. Type of Voucher: Payment (Specify the default Tally.ERP 9 voucher, whose functions the
new voucher should copy).
3. Abbr.: Bank Pymt (Specify the abbreviation to denote this new voucher in reports)
4. Method of Voucher Numbering: Automatic
You can choose one of the following methods for numbering from the pop-up:
The voucher date is taken from the current date mentioned at the
Gateway of Tally.ERP 9. However, the effective date for the voucher
may be different. For example, entering a post-dated cheque.
Tally.ERP 9 displays the narration field which applies to the whole
voucher. By setting Use Common Narration option to No, we can
have separate narration fields for each line on the voucher. Reversing
Journals are used for Scenario Management.
The Name of Class field enables creation of Voucher Classes for the
respective voucher types. (The Voucher class is a template to custom-
ise voucher data entry).
Practice Exercise
Create a Petty Cash Payment Voucher Type
Ensure that the details in the Voucher Type Creation screen are as shown below:
Voucher Entry in Tally.ERP 9
The above exercises are sample enteries for understanding Voucher entry
in Tally.ERP 9, do not make these entries.
Narration
Here you type whatever appropriately describes the transaction. Remem-
ber, you can have a separate narration for each line of particulars, if you
configure the voucher type in that way.
For Payment Vouchers, where a bank account has been credited,
Tally.ERP 9 pre-sets the narration to Ch.No. expecting a cheque number
to be entered. This can be over written if required.
Once the narration is complete, press Enter to bring up the Accept?
box.
Once you accept the data, Tally.ERP 9 presents another data entry
screen.
Figure 5.14 Trial Balance From April 1, 2009 to June 30, 2009
Open Tally program.
Select your Company. In our case, we shall select M/s XYZ Limited.
Maintain Assignment entry in tally voucher.
Select ‘Display’ under gateway of tally.
Select ‘Profit & Loss Account’. After you select ‘Profit & Loss Account’ then the screen shall
appear as under:-
Note: In above Profit and Loss Account, Trading Account and Profit & Loss Account are not
shown separately. To see gross profit and net profit separately, you have to do following
job:-
You can see an icon on gateway of tally i.e. ‘Configuration’. Select the same or pres F-12.
After you select ‘configuration’, you will see the following screen:-
Now, Select the commands as follow:-
Show Vertical Profit & Loss Account If you want to see P&L in vertical form
then write ‘yes’. In our case we want to
see only in horizontal form. So you
select ‘No’. You can see the profit and
loss account in vertical form also after
selecting ‘Yes’ under this column.
After you press enter on last command then format of your profit and loss account will
change in to parts i.e. it will show trading account and profit & loss account in two parts.
Now, you can see gross profit and net profit separately. This screen will appear as under:-
If you see the Profit & Loss Account in above format, you will find that all the ledger
accounts are shown in groups. For example – direct expenses, indirect expenses etc. Now’
you want to see the profit and loss account in more detailed manner then you just select
‘Detailed’ on screen. Now, your screen shall appear as under:-
Above format is much clearer than previous one.
You can see the profit and loss account relating to any period. For this, just Select ‘Period’
Display Trial Balance in Tally.ERP 9
A Trial Balance is a summary of all ledger balances to check whether the figures are correct and balanced.
Considering that the journal entries are error-free and posted correctly to the general ledger, the total of all
debit balances should equal the total of all the credit balances.
In Tally.ERP 9, the matching of the Trial Balance is a foregone conclusion since all voucher entries are in
Debit - Credit format and must balance at the entry point.
Note: As pe r accounti ng pri nci ple s, the Tri al Balance doe s not l i st Cl osing Stock.
Tally.ERP 9 shows group wise Trial Balance. Next level detail for a group can be exploded by
pressing Shift+Enter. Details of all groups can also be obtained through configuration, except for groups
behaving like sub-ledgers.
Select F1: Detailed to break down the grouped information or simply drill down a Group for further detail.
In Tally.ERP 9, the matching of the Trial Balance is a foregone conclusion since all voucher entries are in
Debit - Credit format and must balance at the entry point.
Tally.ERP 9 shows group wise Trial Balance. Next level detail for a group can be exploded by
pressing Shift+Enter. Details of all groups can also be obtained through configuration, except for groups
behaving like sub-ledgers.
Select F1: Detailed to break down the grouped information or simply drill down a Group for further detail.
By default, Tally.ERP 9 contains two Ledger accounts namely, Cash (Under Cash-in- Hand) and
Profit and Loss Account (direct Primary Account). You need to create all other accounts heads.
There are no restrictions in Ledger creation except that you cannot create another Profit & Loss A/c.
Any number of Cash Accounts may be created in any other name for ex: Petty Cash.
The creation of a Ledger depends on the features you have selected under F11: Features of your
company and F12: Configure. You can create a single ledger account with the default options enabled.
Go to Gateway of Tally > Accounts Info > Ledgers > Single Ledger > Create
Name
Enter the Name of the account. You can provide the full name of the account. Tally.ERP 9 fits it all
in. Press Enter to move to the next field. Tally.ERP 9 does not allow the entry of duplicate names.
The uniqueness check is made here itself.
Note that the punctuation and other non-relevant information are ignored by Tally.ERP 9 in its
recognition of a name. Thus, CST, C.S.T. and C. S. T. are all considered as same.
Tally.ERP 9 converts the first letter of all relevant words to upper case, which helps you; speed up
data entry.
Alias
Enter an alias name if required. You can access the Ledgers using the original name or the alias
name.
Under
All accounts must be classified under their appropriate Groups. Select the Group under which the
Ledger is created from the List of Groups. (To create a new Group from this field press [ALT + C]).
A wrong classification would affect the treatment of the Ledger account in final statements and
during voucher entry.
You can, alter a Ledger account to change its group classification at any time. Refer Importance of
Grouping and Accounting Classifications: for more details in Grouping
Opening Balance
If yours is an existing company whose books you are entering into Tally.ERP 9, Opening Balance
would be applicable in circumstances where the Ledger is an asset or a liability and if it has a
balance in the account as on the date of beginning of books in Tally.ERP 9.
Tally.ERP 9 recognizes normal accounting principles of debit balances for Assets and credit balances
for Liabilities. It accepts the reverse for obverse balances. Revenue accounts normally do not have
balances. Tally.ERP 9, however, permits you to give balances even for such accounts - You may be
transferring your books on to Tally.ERP 9 in the middle of the year and may not have closed them in
your earlier system. Hence, you may specify whether the balance is Debit or Credit.
Simply D orC would suffice.
Creating a Purchase Invoice
1. Select the Party’s A/c Name from the List of Ledger Accounts.
2. Select the Purchase Ledger grouped under Purchase Accounts with VAT/Tax class -
Purchase From URDs - Taxable Goods (Composition).
5. Enter the Quantity and Rate. The amount is automatically displayed in the Amount
field.
1. Select the Party’s A/c Name from the List of Ledger Accounts.
2. Select Sales Ledger grouped under Sales Accounts with VAT/Tax class - Sales -
Composition Tax @ 1%.
5. Enter the Quantity and Rate. The amount is automatically displayed in the Amount
field.
2. Select the Party’s A/c Name from the List of Ledger Accounts.
3. Select the Purchase Ledger and the appropriate VAT /Tax Class appears.
4. Select the stock item from the List of Items and enter the Quantity and Rate. The
amount is automatically displayed in the Amount field.
2. Select the Party’s A/c Name from the List of Ledger Accounts.
3. Select the Sales Ledger and the appropriate VAT /Tax Class appears.
4. Select the stock item from the List of Items and enter the Quantity and Rate. The
amount is automatically displayed in the Amount field.
If you want the narration details for every ledger you debit or credit (Single narration), you can
configure Tally.ERP's Narration details accordingly.
Go to Gateway of Tally > Accounts Information > Voucher Types > Alter
2. Enable the option Narrations for each Entry and accept the details.
3. Return to Accounting Vouchers in Gateway of Tally and select the voucher type and
pass the entry.
Narration for each entry option is available for all Accounting Voucher Types. Given below is an
example of a Payment transaction with narrations for each entry enabled:
The above entry consists of both common narration and narrations for each entry. In case of
multiple debit/credit entries, you can give single line narration separately for every ledger account
selected.
• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Creating a Journal Entry
For example, there may be entries made for interest accrued or interest due. If you have to receive
Interest from a party, the same can be entered using Journal Voucher.
• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Allowing Cash Accounts in Journals
Journals are adjustment entries, which do not involve Cash account and Bank account. However in
exceptional cases where the user would like to account Journal entries involving Cash/Bank
Account, Tally.ERP 9 has the flexibility of passing such entries by enabling the option under F12
configuration.
• Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry
Configuration).
The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown :
Not e: Al l C ash account s and Bank account s are displ aye d i n the List of Le dge r
Accounts. Accordingl y the j ournal e ntry has to be made .
• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting their Account in your
Books of Accounts for the stated reason or vise versa. It is commonly used in case of Purchase
Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the
party etc.
• To use it in Voucher mode you need to enable the feature in F11 :Accounting Features
- Use Debit / Credit Notes.
• To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.
You can toggle between voucher and Invoice mode by clicking Ctrl+V.
• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Credit Note Entry
Credit Note is a document issued to a party stating that you are crediting their Account in your
Books of Accounts for the stated reason or vise versa. It is commonly used in case of Sales
Returns, Escalation/De-escalation in price etc.
• To use it in Voucher mode you need to enable the feature in F11 :Accounting Features
- Use Debit / Credit Notes.
• To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.
You can toggle between voucher and Invoice mode by clicking Ctrl+V.
• ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
• CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of
the ledger.
Creating Inventory Masters in
Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will be able to understand
Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock,
stock movement between storage locations or godowns and providing information on stock
availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that
the financial statements reflect the closing stock value from the Inventory system.
The inventory system operates in much the same way as the accounting system.
First you set up the inventory details, which is a similar operation to creating the chart of
accounts although, in this case, there are no pre-defined set of stock groups.
Second, you create the individual stock items, which is similar to setting up the ledgers.
In a newly created company the Inventory Info. menu comprises of four types of Masters, viz.
Stock Groups, Stock Items, Units of Measure and Voucher Types.
Go to the Gateway of Tally > Inventory Info.
The Inventory info. menu is displayed as shown:
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Creating Inventory Masters in Tally.ERP 9
The above Inventory Masters types are explained in detailed in the following
sections. Units of Measure
Let us take the example of Indus Enterprises that sells Televisions and Music
Systems. Given below is the structure of items being sold.
Group A – Televisions
A1 – Sony A1a – Sony 29 inches TV
A1b – Sony 25 inches TV
A2 – Philips A2a – Philips 29 inches TV
A2b – Philips 25 inches TV
A3 – Videocon A3a – Videocon 29 inches TV
A3b – Videocon 25 inches TV
The televisions are sold in numbers. Hence, the Unit of Measure will be Nos.
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Creating Inventory Masters in Tally.ERP 9
Indus Enterprises has two Godowns, the Bangalore Godown and the Mumbai
Godown. The grouping structure in Tally.ERP 9 is as follows:
Stock Group
1. Televisions (main stock group)
Sony TV – stock group under Televisons
Philips TV – stock group under Televisons
Videocon TV – stock group under Televisons
2. Music Systems (main stock group)
Sony Music Systems – Stock Group under Music Systems
Videocon Music Systems – Stock Group under Music Systems
Under the stock group Televisions, let us create stock groups based on the different brands
being sold viz. Sony, Philips and Videocon. This helps to find the total sales of a particular brand
of tele-visions at any given point of time. In order to compare the total sales of the 29 and 25
inches tele-visions respectively, Tally.ERP 9's feature of Stock Categories for parallel
classification can be used.
Experiment Creation of Inventory Masters in Indus Enterprises.
65
Creating Inventory Masters in Tally.ERP 9
Practice Exercise
Create the following Stock Groups in the similar manner
Name Under Can Quantities
of items be
ADDED
Philips TV Televisions Yes
Videocon TV Televisions Yes
Sony Music Systems Music Systems Yes
Videocon Music Systems Music Systems Yes
Set Yes to Maintain Stock Categories in F11: Features (F2: Inventory Features) to get
an additional option Stock Categories under Inventory Info.
66
Creating Inventory Masters in Tally.ERP 9
Set Yes to Maintain Multiple Godowns in F11: Features (F2: Inventory Features) to
get additional option like Stock Categories under Inventory Info.
67
Creating Inventory Masters in Tally.ERP 9
Type
Tally.ERP 9 has the option to create simple units as well as compound units. Examples: box,
nos, pcs, etc. A Compound Unit is a combination of two simple units of measure. Example: A
box of 10 pcs is a compound unit of measure.
Symbol
It is the abbreviated form by which a stock item is identified. For example, the abbreviation pcs
indicates – pieces.
68
Creating Inventory Masters in Tally.ERP 9
Formal Name
This represents the complete or formal name of a symbol used while creating a unit. Different
companies use different symbols to represent the same units. Formal names help you to match
the symbols with their respective units. For example, the symbol for numbers (formal name) can
be nos or num.
Number of Decimal Places
A unit can be expressed as fractions. For example, a 3.15 Kg refers to 3Kg and 150 grams. The
number of digits expressed in grams after the decimal places are three. Likewise, fractions up to
four decimal places can be expressed in the same manner. For expressing numbers, without a
decimal place, specify 0 in this option.
69
Creating Inventory Masters in Tally.ERP 9
70
Creating Inventory Masters in Tally.ERP 9
i. Create a Stock Item Sony 29 inches TV, under the Group Sony TV.
Ensure that the details appear as shown below:
Practice Exercise
Similarly, create the following Stock Items under Televisions
71
Creating Inventory Masters in Tally.ERP 9
Let us now use Tally.ERP 9 to set up the basic inventory details for National Traders that sells
computers, Printers and Peripherals. Create the stock groups and sub-groups as shown:
72
Creating Inventory Masters in Tally.ERP 9
73
Creating Inventory Masters in Tally.ERP 9
74
Creating Inventory Masters in Tally.ERP 9
75
Creating Inventory Masters in Tally.ERP 9
Once you have entered all the stock items, return to the main Gateway of Tally menu and select
the Stock Summary. This should show a grand total of 2,86,150, the break-up of which is,
Computers - Rs. 1,55,900, Peripherals - Rs. 32,350, Printers - 97,900 = Rs.
2,86,150. Ensure that the Stock Summary appears as shown :
81
Creating Inventory Masters in Tally.ERP 9
Points to Remember
Inventory accounting includes recording stock details like the
purchase of stock, the sale of stock, stock movement between storage
locations or godowns and providing information on stock availability.
Stock Groups are provided for the purpose of classification of
stock items.
Stock Items refers to goods that you manufacture or trade.
Godowns/Location are places where stock items are stored.
82
Creating a Purchase Entry in Tally.ERP 9
When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase
transactions of the company.
For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-
To pass a Purchase entry in the Invoice mode, you need to enable the option Allow Invoicing option
in F11:Features (F1: Accounting or F2:Inventory Features).
An Account Invoice
An Item Invoice
Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an
Account Invoice. This is useful especially when a Service Bill is entered and does not include Inventory.
Pass a purchase Invoice for Service availed from XYZ Couriers.
Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger
account. This is useful to record all the Inventory movements in books of account.
Pass a Purchase Invoice against purchase of Item A – 100 Nos. @ Rs. 10/= per quantity from LMN &
Company.
Configuring a Invoice
Before creating the Purchase Invoice, you can set your Invoice Configurations from F12 configure:
Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice)
1. Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is
set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the
default name and address present in the ledger.
2. Allow separate Buyer and Consignee names: Customers who are into consignment business and
would like to have the Consignee details on the Invoice, have to set this option to Yes.
3. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single
Purchase Ledger in the Invoice, you need to set this option to Yes for faster data entry.
4. Allow Expenses/Fixed Assets for Accounting Allocation: If you want to use Expense or Fixed Assets
ledgers while recording a Purchase entry, set this option to Yes.
5. Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically
as defined in voucher type master in ascending order.
6. Use Additional Description(s) for Item Name: If you would like to specify any additional description
for item during entry, this option has to be enabled.
7. Use Additional Description(s) for Ledger Name: If you would like to specify any additional
description for ledger during entry, this option has to be enabled.
8. Consolidate Stock Items with same rates: If you would like to consolidate the stock items having
same rates in Invoice, set this option to Yes.
9. Show Compound Unit of Item based on Rate: By enabling this option, you will be allowed to show the
compound unit of item based on the unit provided in the Rate Per column. For more details, click here.
10. Show Full Details of Compound Unit: Enabling this option will display full details of compound unit in the
Quantity field. For more details, click here.
11. Confirm each Cheque before Print: When you set this option to Yes, a conformation screen will appear for
every cheque used for the transaction before it is printed.
12. Use Defaults for Bank Allocation: Setting this option to Yes, the Bank Allocations will have default
allocations in which, the Transaction type is Cheque, Voucher date as Instrument Date. the Cheque Range
and Cheque Number will be Blank if it is not defined.
13. Use Auto Cheque Numbering: To fetch cheque numbers automatically to the Bank Allocation, set this
option to Yes. The first Cheque Range defined for the Bank ledger will be taken as default.
14. Allow Selection of Cheque Ranges: Setting this option to Yes, allows you to select any cheque range
defined for a bank.
15. Show Remarks in Bank Allocation Details: A new field - Remarks, will appear in the Bank Allocation screen
where you can enter your remarks, when this option is set to Yes.
16. Importer’s Options: This is useful for import transactions.
17. Show turnover achieved with Customer: This option will help to view the turnover details during
entry.
18. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the
Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields.
19. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with
quantity details. You can then check which item is having negative stock balance.
20. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for
selection during entry by configuring this option.
21. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be
available for selection during entry.
22. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated
after considering the additional Expenses.
For more details on Purchase Voucher mode configurations refer Voucher Entry Configuration
When you are passing an Item Invoice in Invoice mode, the following options will be available in the
Button Bar.
Alt+I – Acct Invoice – You can toggle between Item Invoice and Account Invoice, by clicking on this
option on the Button Bar or pressing Alt+I or vice-versa.
Ctrl+V – As Voucher – You can toggle between Invoice mode and Voucher mode, by clicking on this option
on the Button Bar or pressing Ctrl+V or vice-versa.
ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Creating a Sales Entry in Tally.ERP 9
When a company sells goods on credit or cash, Sales voucher is used to record all the Sales transactions of the
company.
For example, if you are selling goods to Debtor A for a value of Rs. 10000/-
Sales Account Invoice is generally used by professionals such as doctors and consultants who require to
issue an invoice for certain services provided such as consultancy charges, professional fees, etc.
Trading and manufacturing organizations also use the Account Invoice for invoicing service charges.
On the Sales entry screen, click on Acct Invoice button, which is displayed on the Button Bar on the right-
hand side of the screen to display the Sales Account Invoice screen as shown.
Tally.ERP's Account Invoice mode displays the list of ledger accounts, which can be invoiced as required.
This is unlike Item Invoice where Tally.ERP 9 displays the list of stock items.
Item Invoice
Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item
Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing
organizations commonly use this format.
On the Sales invoice screen, click on the button Item Invoice, which is displayed on the Button Bar on the
right side of the screen and the Sales Item Invoice appears as shown below:
Pass a Sales Invoice against sale of Item A – 50 Nos. @ Rs. 15/= per quantity to Debtor C:
Tally.ERP's Item Invoice mode displays the list of stock items, which can be invoiced as required.
ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.
Concept of Debit & Credit Note
The need for debit note and credit note arises most of the time when there is a Return of
Goods.
Usually when there is a return of goods, the person does not directly give the cash for the
returned goods.
And the buyer issues a Debit Note for the same transaction to the seller from whom he has
received credit note.
Debit Note
As I issued a Credit Note, at the same time Amit will issue Debit Note to me for the
same transaction.
Amit has returned goods worth ₹5,000 to me and he will issue a debit note for that
amount.
Therefore Amit will show debit balance (Debit = Assets) of me in his books.
This is because Amit has already paid for the goods, but has returned some of them.
On the other hand, I will show credit balance (Credit = Liabilities) of Amit in
my books.
The reason for credit balance is because I have received the goods in return as well as
money for that goods from Amit.
To enable the option for debit and credit notes in Tally, follow the steps below.
Physical Stock Voucher is used for recording the actual stock which is verified or counted. It could
happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds
a discrepancy between actual stock and computer stock figure.
Physical vouchers will be useful for recording purposes only if you have configured inventory vouchers to
ignore physical stock differences. If you have configured the vouchers so that physical stock difference is not
ignored, then all transactions subsequent to the physical stock voucher will use the balance as mentioned in
that voucher
1. Select the button F10: Phys Stk from Button Bar or press Alt+F10.
[Img-32]
Date
Name of Item
Select the name of the item from the List of items, for which physical stocks need to be recorded.
Godowns
Select the Godown (Godown will appear only if, Maintain multiple Godowns is activated in F11:Features
:F2:Inventory Features), in which the Physical Stock taking was conducted.
Batch / Lot No
Select the Batch number (Batch details will appear only if, Batch wise details are activated in
the Stock Item Master screen) for which the Physical Stock quantity is to be recorded.
Quantity
Note: Physi cal Stock quanti ty w il l be di spl aye d as Actual Stock in the Stock Summary
from the date of e ntry of the Physi cal Stock.
More :
Memorandum Voucher
Optional Vouchers
Reversing Journals
Memorandum Voucher
Reversing Journal
Along with the above mentioned voucher types, there are two options available namely Post
Dated and Optional for other voucher types.
'Memorandum Voucher' in Tally.ERP 9
This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts. In
other words, Tally.ERP 9 does not post these entries to ledgers, but stores them in a separate Memorandum
Register. You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the
entry into your books.
Consider that a company gives its employees cash to buy office supplies, the exact nature and cost of which
are unknown. For this transaction you can enter a voucher for the petty cash advance, a voucher to record
the actual expenditure details when they are known, and another voucher to record the return of surplus
cash.
However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and then turn it
into a Payment voucher for the actual amount spent, when the details are known.
The Company pays its employee Rs. 1000 as petty cash advance for Office Expenses.
To use Memorandum voucher, Enable the following option from F11: Accounting Features
Go to Gateway of Tally > Accounting Vouchers > Select Ctrl+F10: Memos from the Button Bar or
click Ctrl+F10.
If there is no clarity with the details of a voucher you are entering, you can enter it as a Memo voucher and
amend it later when the details are available.
Generally completed sales are entered into books. In case items are given on approval, use a Memo voucher
to track and convert it into a proper Sales voucher. You can cancel/delete the memo voucher if the sale is
not made.
Go to Gateway of Tally > Display > Exception Reports > Memorandum Vouchers.
You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into
your books. Use Scenarios to see the effect of Memo entries on reports and statements.
Optional Vouchers ' in Tally.ERP 9
Unlike a Memo voucher, this is not a separate voucher type. You can mark an existing voucher (for example,
a payment voucher or a receipt voucher) as Optional. Press CTRL + L or click on Optional from the Button
Bar. This button toggles between Regular and Optional. By marking a voucher Optional, the voucher does
not get posted anywhere but remains in the Optional Voucher Register.
You can make a voucher type Optional to regular, if you need to create a new voucher type or alter an
existing voucher type.
Go to Gateway of Tally > Accounts Info > Voucher Types> select a Voucher Type> Set Make
Optional as default to Yes.
After enabling this option, any vouchers entered using this particular voucher type will be optional.
Go to Gateway of Tally
If you do not want a transaction that is incomplete to affect the accounts, you can mark this as
an Optional Voucher. Once the transaction is complete, modify the voucher and post it as a
Regular Voucher. For example, Proforma sales invoice. In fact, an optional sales invoice is
printed as a Proforma Invoice.
Optional Vouchers allow you to see the impact of transactions without actually posting them.
Optional Vouchers can be used to forecast future sales. For example, create a New Voucher
Type - Sales Forecast. Record future sales projections using this voucher type.
Consider an example: it is the 30th of June and you would like to view the Balance Sheet as of today, but
June salaries are not due for payment until the first week of July. The Balance Sheet will not be projecting
the correct figures. To overcome this, you can enter an Optional Voucher dated 30th June.
Note: Use Scenari os to se e the e ffe ct of O pti onal vouche r e ntrie s on re ports and
state me nts.
You can view all optional vouchers in the Optional Vouchers Register
Go to Gateway of Tally > Display > Exception Reports > Optional Vouchers.
Go to Gateway of Tally
You may use reversion journal for accounting for or providing for depreciation. Since, depreciation is usually
provided during at the end of the year, using the Reversing journal you may include them for monthly
reporting or a specific period to give more accurate status or position.
On 30th June you want to view the Balance Sheet but June month’s rent is not been paid. You may create a
Scenario (refer Scenario Management for more information) and pass a Reversing Journal entry to view the
reports which will be effective up to the applicable date. When you view the Balance Sheet, Tally.ERP 9
displays the report with the reversing journals included. The voucher affects the report only for that day,
30th June.
Applicable up to
The reversing Journal is available for inclusion in a scenario report till this date. The Reversing Journal can
be created as of a particular date and made Applicable up to a different date.
All vouchers are maintained in a Reversing Journal Register. These are not posted to any books of accounts
and cannot be included in regular reports. They can only be seen using a scenario.
Mark vouchers Post Dated by using CTRL + T or click on the button Post dated from the Button Bar. This
button toggles between Current and Post Dated.
The major difference between post dated vouchers and other Unconventional vouchers is that post dated
Vouchers affect regular books of accounts on the date of the voucher. Post-dated vouchers are not available
for selection in Scenarios.
Purchase Order
Inventory Vouchers
Tally.ERP 9 inventory vouchers perform the same function in the inventory system as
accounting vouchers do. They are the means by which you enter transactions relating to the
Inventory. The vouchers record transactions relating to the issue and receipt of stock, the
transfer of stock between godowns, and physical stock adjustments. The following inventory
vouchers are available in Tally.ERP 9:
Purchase Order (Alt+F4)
Receipt Note (Alt+F9)
Rejections out (Alt+F6)
Purchase (F9)
Payment (F5)
Purchase Order
A Purchase order entry has to be made in the books of the company to assist them in checking
whether the goods have been received or not. The Purchase Order number can be used as a
reference. For example, the company wishes to place an order with the supplier for some goods.
Purchase Order
Description Records placing an order for stock items to suppliers.
Details recorded Supplier's Ledger account, Name and address, Order details, name
of stock item, Due on, Godown, Quantity, Rate, Amount, Narration.
Receipt Note
Goods that are received from the supplier are recorded in a Receipt Note (Goods Receipt Note
– GRN) voucher.
Receipt Note
Description Records receipt of new stock from suppliers
Details recorded Reference, ledger account, (If supplementary details are set to yes in F12:
Receipt Note Configuration) then, Order details, Supplier’s name and
address, name of stock item, Tracking details, Order details, Godown,
Quantity, Rate (optional), Amount (optional), narration.
Rejections Out
A Rejection Out entry is passed to record the rejected goods. This is a pure inventory voucher.
For example: We have purchased some goods and have rejected a part of it.
Rejections Out (Purchase Returns)
Description Records rejected stock details returned to suppliers.
Details recorded Ledger Account, Suppliers name and address, stock item, Tracking
details, Order details, Godown, Quantity, Rate, Amount, and Narration.
Purchase voucher
For example: the company receives new stock from a supplier.
Purchase Voucher
Description Records receipt of new stock with invoice from suppliers.
Details recorded Reference, ledger account, supplier’s name and address, name of
stock item, godown, quantity, rate, amount, purchase ledger, other
ledgers (if required), narration.
Payment
A payment entry has to be made in the books of the company to assist them in checking whether
the goods have been received or dues is clear or not. The Purchase number can be used as a ref-
erence. For example, the company wishes to place an order with the supplier for some goods.
Payment
Description Clear the Dues to suppliers.
Details recorded dues is clear to the party
Payment (F5)
Stock Summary
Go to the Gateway of Tally > Stock Summary.
Sale Order:
Inventory Vouchers
Tally.ERP 9 inventory vouchers perform the same function in the inventory system as
accounting vouchers do. They are the means by which you enter transactions relating to the
Inventory. The vouchers record transactions relating to the issue and receipt of stock, the
transfer of stock between godowns, and physical stock adjustments. The following inventory
vouchers are available in Tally.ERP 9 :
Sales Order (Alt+F5)
Delivery Note (Alt+F8)
Rejections in (Ctrl+ F6)
Sale Voucher (F8)
Receipt Voucher (F6)
Sales Order
A Sales Order entry has to be made to record this. The Sales Order number can be used as a ref-
erence. For example, a customer places an order with the company for purchasing some goods.
Sales Order
Description Records order details for stock items received from customers.
Details recorded Customer's Ledger account, Name and address, Order details, name
of stock item, Due on, Godown, Quantity, Rate, Amount, Narration.
Delivery Note
Goods that are being delivered to a customer are recorded in a Delivery Note voucher.
Delivery Note
Description Records delivery of new stock to customers
Details recorded Reference, ledger account, supplier’s (if supplementary details are set to
yes in F12: Delivery Note Configuration) then, name and address,
Order & dispatch details, name of stock item, Tracking details, Order
details, Godown, Quantity, Rate(optional), Amount(optional), narration.
Rejections In
A Rejection In entry is passed to record the rejected goods. The Rejections In entry is a pure
inventory voucher. For example a customer has rejected goods that was sold earlier.
Sales Voucher
Description Records the delivery of goods and invoice to customers.
Details recorded Reference, ledger account, customer’s name and address, name of
stock item, godown, quantity, rate, amount, sales ledger, sales tax
ledger (if required), narration.
Receipt voucher
For example: the company Received all dues from customer.
Sales Voucher
Description Company Received all dues from customer.
Details recorded Company Received all dues from customer.
Lesson Objectives
On completion of this lesson, you will be able to understand
Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock,
stock movement between storage locations or godowns and providing information on stock
availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that
the financial statements reflect the closing stock value from the Inventory system.
The inventory system operates in much the same way as the accounting system.
First you set up the inventory details, which is a similar operation to creating the chart of
accounts although, in this case, there are no pre-defined set of stock groups.
Second, you create the individual stock items, which is similar to setting up the ledgers.
In a newly created company the Inventory Info. menu comprises of four types of Masters, viz.
Stock Groups, Stock Items, Units of Measure and Voucher Types.
Go to the Gateway of Tally > Inventory Info.
The Inventory info. menu is displayed as shown:
Creating Inventory Masters in Tally.ERP 9
The above Inventory Masters types are explained in detailed in the following
sections. Units of Measure
Let us take the example of Indus Enterprises that sells Televisions and Music
Systems. Given below is the structure of items being sold.
Group A – Televisions
A1 – Sony A1a – Sony 29 inches TV
A1b – Sony 25 inches TV
A2 – Philips A2a – Philips 29 inches TV
A2b – Philips 25 inches TV
A3 – Videocon A3a – Videocon 29 inches TV
A3b – Videocon 25 inches TV
The televisions are sold in numbers. Hence, the Unit of Measure will be Nos.
Creating Inventory Masters in Tally.ERP 9
Indus Enterprises has two Godowns, the Bangalore Godown and the Mumbai
Godown. The grouping structure in Tally.ERP 9 is as follows:
Stock Group
1. Televisions (main stock group)
Sony TV – stock group under Televisons
Philips TV – stock group under Televisons
Videocon TV – stock group under Televisons
2. Music Systems (main stock group)
Sony Music Systems – Stock Group under Music Systems
Videocon Music Systems – Stock Group under Music Systems
Under the stock group Televisions, let us create stock groups based on the different brands
being sold viz. Sony, Philips and Videocon. This helps to find the total sales of a particular brand
of tele-visions at any given point of time. In order to compare the total sales of the 29 and 25
inches tele-visions respectively, Tally.ERP 9's feature of Stock Categories for parallel
classification can be used.
Experiment Creation of Inventory Masters in Indus Enterprises.
Practice Exercise
Create the following Stock Groups in the similar manner
Name Under Can Quantities
of items be
ADDED
Philips TV Televisions Yes
Videocon TV Televisions Yes
Sony Music Systems Music Systems Yes
Videocon Music Systems Music Systems Yes
Set Yes to Maintain Stock Categories in F11: Features (F2: Inventory Features) to get
an additional option Stock Categories under Inventory Info.
Creating Inventory Masters in Tally.ERP 9
Set Yes to Maintain Multiple Godowns in F11: Features (F2: Inventory Features) to
get additional option like Stock Categories under Inventory Info.
Type
Tally.ERP 9 has the option to create simple units as well as compound units. Examples: box,
nos, pcs, etc. A Compound Unit is a combination of two simple units of measure. Example: A
box of 10 pcs is a compound unit of measure.
Symbol
It is the abbreviated form by which a stock item is identified. For example, the abbreviation pcs
indicates – pieces.
Formal Name
This represents the complete or formal name of a symbol used while creating a unit. Different
companies use different symbols to represent the same units. Formal names help you to match
the symbols with their respective units. For example, the symbol for numbers (formal name) can
be nos or num.
Number of Decimal Places
A unit can be expressed as fractions. For example, a 3.15 Kg refers to 3Kg and 150 grams. The
number of digits expressed in grams after the decimal places are three. Likewise, fractions up to
four decimal places can be expressed in the same manner. For expressing numbers, without a
decimal place, specify 0 in this option.
i. Create a Stock Item Sony 29 inches TV, under the Group Sony TV.
Ensure that the details appear as shown below:
Practice Exercise
Similarly, create the following Stock Items under Televisions
Let us now use Tally.ERP 9 to set up the basic inventory details for National Traders that sells
computers, Printers and Peripherals. Create the stock groups and sub-groups as shown:
Figure
4.12
Compou
nd Units
of
Measure
Creation
To Create a Godown, go to the Gateway of Tally > Inventory Info. > Godowns > Create.
1. Name: Warehouse
2. alias: Skip the field
3. Under: Primary
4. Allow Storage of materials: Yes
Similarly, create On-Site as Godown under Primary.
1. Name: On - Site
2. alias: Skip the field
3. Under: Primary
4. Allow Storage of materials: Yes
You can delete a stock Godown via Single Godown > Alter by pressing Alt+D. However, you
cannot delete a stock Godown with sub-godowns. The lower levels must be deleted first.
Security control is an essential part of any organisation, without which an employee may be performing a
number of non-essential tasks, for example: a data entry operator could create Masters, view the Trial
Balance, Final Accounts, Ratio Analysis or delete essential information etc.,
Security controls need to be defined based on the work profile of an employee. Typically, in an organisation
the administrator has all the access rights to the system, whereas the employees are given access rights
based on their work profile demonstrating segregation of duties.
By default Tally.ERP 9 has two levels of Security namely Owner and Data Entry.
Owner - The owner has full access rights which will enable him to work with all the features of Tally.ERP 9,
except for Tally Audit and Company Alteration which are reserved for the Administrator. Based on pre-
defined security levels the Administrator can create other security levels and assign or restrict access based
on the requirement.
Data Entry - Data Entry has restricted access but the administrator can assign or restrict the access based
on the requirement.
To create security levels you should login as the administrator. The administrator login has to be created in
the Company Creation or by altering the Company Masters.
4. Enter the password. Tally.ERP 9 displays the strength of the password entered depending on
the combination - Alphabets, Numbers & Special Characters.
Note: The ste ps show n above are through the Company Maste rs Al te rati on w here as the use r
can cre ate the admi ni strator l ogi n and passw ord while cre ati ng the company. Incase you are
al teri ng the company maste rs then cl ose and re -l oad the company for the se curity co ntrol
me nu to be e nabl e
Press Alt+ F3 keys or click on F3: Cmp Info button from Gateway of Tally to
navigate Company Info menu
In Company Info menu, select the option Alter and press Enter to view Company
Alteration screen
In Company Alteration screen, tab down to Use Security Control field and set it to No
On Setting this option to No, Tally.ERP 9 will prompt you to enter the Current/Existing
Password
On specifying the Existing Password and saving the Company Alteration, Tally.ERP 9 will prompt to
reload the Company and on confirmation company will be loaded without requesting
for User Name and Password.
2. The Security Levels screen displays the List of Security Levels. You can create a new security level
for which you have to enter the required security level.
Use Basic Facilities of – the administrator can select the required facility from the Security List.
In case there already exists user defined security levels, they will be displayed in the Security
List. The new level created will be displayed when the user creates another security level
Days Allowed for Back Dated Vouchers – By default this field is set to 0, enter the required
number of days. Alteration or Insertion of backdated vouchers can be done within the number
of days mentioned from the Date of Last Entry of vouchers
Cut-off date for Backdated vouchers – the user can specify the required date. Tally.ERP 9 does
not allow you to record a transaction prior to the date mentioned. This can be used in addition
to Days Allowed for Backdated Voucher. This input will be useful in situations where you have
completed the audit and do not require any changes in the data
Set Rules for Print Before Save - set this option to Yes in order to restrict a security level from
printing the required voucher type before saving the voucher or restrict a security level from
printing all the available voucher types before saving the vouchers
By de faul t Set Rul es f or Pri nt Bef ore Save i s se t to No w hi ch al l ow s the use r to pri nt all
the avail abl e vouche r types.
From the Types of Vouchers displayed select the required voucher type that is allowed for
printing before save
From the Types of Vouchers displayed select the required voucher type that need to be
disallowed for printing before save
Allow to Connect Company – by default it is set to No. Set this to Yes if you need to connect
the respective company to the Tally.NET Server
Use Tally.NET Authentication – by default it is set to No. Set this to Yes if you need to work
from a remote location
User Tally.NET Auditor Authentication – by default this option is set to No. Set it to Yes if you
want to scrutinise the data of the client from a remote location
Permissions for Security Levels – The columns Disallow the following Facilities or Allow the
following Facilities are further divided into two columns each
Disallow the Following Facilities - To disallow access to different options, select the required
type of access from the Type of Access and then select the report for which the access rights
are restricted from the List of Reports. You can set the access rights for different options. E.g.,
Select Full Access for the Balance Sheet, you will not have access to the Balance Sheet for this
Security Level
Allow the following Facilities – Conversely when you select Full Access to the Balance Sheet,
there will be full access to the Balance Sheet for this security level
Press Enter to return to Security Levels for Company screen. You can create the next security
level following similar steps or press Enter to save and return to Security Control Menu.
To create the user and assign a password execute the following steps:
6. By default Allow Remote Access and Allow Local TDL is set to No and skipped for users not
classified under Tally.NET User and Tally.NET Auditor
You have to use the same menu to alter or delete User and Password and the Types of Security. To delete
an user, go to the List of Users for Company screen delete the user and save. It is recommended to delete
the User before deleting the security level.
Voucher Type Security - in Tally.ERP 9
Tally.ERP 9 Release 4.5 provides the enhanced capability to set a much deeper level security on individual
Voucher Types for different users.
Voucher Type Security will help the business owner specify both individual Voucher Type (Contra,
Payment, etc.) restriction and activity level (Sales Department, Procurement Department etc) restriction
for different users.
The types of functions or activities for which the control can be set include being able
to Create, Alter, Print, or have Full Access to any particular type of Voucher in Tally.ERP 9.
With Tally.ERP 9's Voucher Type Security feature, the administrator can
Create a department and role based segregation of access for different users.
Example: Access based on Sales, Purchase, Accounts and Payroll etc. for employees in those
areas of work.
Provide or deny access to what level of activity can be performed on a Voucher by different
users
Example: User A & User B can Create and Alter a Payment Voucher, but User C can only view
the same.
Example: ABC Company has a user Arun, who records Sales and Receipt transactions. Access to Create
and Alter Sales and Receipt Vouchers has to be provided to him.
In Security Levels screen, Voucher Types and Group of Vouchers (Accounting Vouchers, Inventory
Vouchers, Order Vouchers and Payroll Vouchers) have been included in List of Reports to set the
Voucher Type Security.
[Img-12]
Note : The al i ases provi ded for Voucher Types w i l l not be di spl aye d i n
the Li st of Reports w hil e de fi ning Vouche r Type Se curi ty.
To provide access to Create/Alter Sales and Receipt Voucher Types, configure the Security Level as
shown:
[Img-13]
When the login details of Arun are used to access the Company,
[Img-14]
On navigating from this option, only Receipt and Sales Vouchers are enabled for recording transactions.
[Img-16]
If the user Arun navigates to Day Book, Tally.ERP 9 will display all the Vouchers recorded during the period
specified, but will not allow the user to Alter/Print the Vouchers which are restricted. If the user selects any
Voucher other than Receipt or Sales Vouchers, Tally.ERP 9 will display the error No Access Allowed!.
[Img-17]
Tally.ERP 9 provides four pre-defined groups of Vouchers in order to facilitate users to quickly configure
Voucher level security.
The Voucher Types in Tally.ERP 9 are grouped under the following categories:
1. Accounting Vouchers
Contra
Payment
Receipt
Journal
Sales
Credit Note
Purchase
Debit Note
Reversing Journal
Memorandum
2. Inventory Vouchers
Rejections In
Rejections Out
Stock Journal
Delivery Note
Receipt Note
Physical Stock
Material In
Material Out
3. Order Vouchers
Sales Order
Purchase Order
4. Payroll Vouchers
Payroll
Attendance
Points to remember:
Disallowing access to Voucher Types will not affect the user's access to Create Voucher
Types. To restrict a user from Creating Voucher Types, access to Masters has to be
Disallowed.
Therefore, according to the example above, as Arun has been Disallowed access to Payment
Voucher, he cannot record transactions using Payment Vouchers, but he can still Create a
Voucher under Payment Voucher Type. To restrict Arun's access for Creating Vouchers under
Payment Voucher Type, access to Accounting Masters has to be Disallowed.
Voucher Type Security Add-ons and Voucher Type Security feature in Tally.ERP 9
Access configurations defined using Tally.ERP 9 and the Add-on will be combined.
Example: If, for User A, Full Access to Payment Voucher is Disallowed in Tally.ERP 9, and in
the Add-on Full Access to Receipt Voucher is Disallowed, User A will not be able to access both
Payment and Receipt Vouchers.
Tally.ERP 9's Voucher Type Security configuration will override the Add-on's configuration.
Example: If for User A, Full Access to the group Accounting Vouchers is Disallowed in
Tally.ERP 9, and in the Add-on Full Access to Payment Voucher is Allowed, User A will not
be able to access Payment Voucher.
A good password policy will enhance data security and allow only authorized users to view financial data. In
Tally.ERP 9, the Administrator can set a password policy in place; which users will have to adhere to, while
creating and managing passwords for their company.
Password Strength
Password Strength is the level of complexity which is attributed to your password, which will keep it safe from
unauthorized attempts to retrieve or guess it. The components that decide the strength of a password are its
length, complexity and unpredictability.
Using strong passwords lowers overall risk of security breach, but strong passwords do not replace the need for
other effective security controls.
Password Strength is one of the password policies that comprise of two elements:
Minimum Password Length is the least number of characters that a password for a user, should
contain.
Password Combinations helps users to strengthen their passwords and makes it difficult for
unauthorized users to figure out these passwords.
Password Expiry
Password Expiry is a mechanism which requires users to change their passwords regularly. This is done
because, over time users tend to give out their passwords, write it down, or otherwise compromise the secrecy
of their passwords. Passwords leaked over time pose a security risk, which is mitigated by Password Expiry.
Password Expiry mechanism expects users to change their passwords at regular time intervals. This time interval
is defined by the Administrator.
For example: If Administrator configures the Password Expiry as 90 days, users have to change their passwords
every 90 days.
Users will be notified before their passwords get expired, when they log-in to the company.
For example: If Administrator configures the Notification to be sent before password expiry as 5 days. Users will
be notified from the 85th day about the password expiry till they change the password.
Password History
It’s possible to maintain a user’s password history and prevent the user from re-using their old passwords. The
Administrator can specify how many previous passwords that should be stored in the Password History.
Policy Overriding
Some users can be excluded from following the Password Policy as they might be higher up in grade than the
Administrator, like Supervisor, Manager, etc. For these users the Administrator can remove the Password Policy.
For both users, Password Policy will be applicable, only if they activate it.
To do so,
Go to Gateway of Tally > Company Info > Security Control > Password Policy
Note: Admi nistrator can also di sabl e the same afte r some i nterval . Poli cy wi ll retai n the
same val ue s once i t is re -enabl e d.
To configure the various features of Password Policy, click on the links below:
1. Password Strength
2. Password Expiry
3. Password History
4. Policy Overriding
7. Other Features
1. Password Strength
Go to Gateway of Tally > Company Info > Security Control > Password Policy
By setting Specify ADVANCED Password Strength to Yes, the Administrator can configure User’s Password
Strength by instructing them to use Alphabets, Numerals, and Special Characters in the passwords.
The Administrator can specify the Minimum number of the Alphabets, Numerical, and Special Characters that
the password should comprise.
Note: If the Passw ord Le ngth i s 0 the opti on, Speci fy ADVANCED Password
Strength w il l be ski ppe d.
2. Password Expiry
Administrator can configure the Notification period for the Password expiry. By default the period will be 1 day.
3. Password History
Password History maintained in Tally.ERP 9 is used to restrict the usage of previous passwords.
Administrator can configure the No. of old Passwords to be restricted after enabling the option - Restrict
the use of old Passwords
Note: Admi nistrator cannot se t the val ue as 0 i n No. of ol d passwords to be
restri cted .
4. Policy Overriding
Administrator can override Password Policy for particular users as per the requirement.
Go to Gateway of Tally > Company Info > Security Control > User and Passwords
In the F12: Configuration, enable Show Apply Password Policy as shown:
Apply Password policy column will be appear in the List of Users for Company screen.
Administrator can disable this option for some users as per his requirements.
If the password policy followed in the organisation requires users to change their passwords upon first
login, enable the option Change password on first login:
So when a user, say User A, logs into the company for the first time, the Change Password screen
appears as shown, with the message Password policy requires you to change password on first
login:
New Password: Enter the password you wish to use in this field
Repeat New Password: Enter the password that was entered in New Password field
The strength of the new password will be indicated below the Repeat New
Password field.
As a part of Password policy, Administrator can also allow his users to change their own passwords.
New Password: Enter the password you wish to use in this field
Repeat New Password: Enter the password that was entered in New Password field
The strength of the new password will be indicated below the Repeat New Password field.
7. Other Features
User Status
Apart from configuring Password Policy, Administrator can also make a user Active or Inactive. Only active users
are allowed to log in to the company while Inactive users are not allowed to load the company.
Go to Gateway of Tally > Company Info > Security Control > User and passwords > F12: Configure
Administrator can make a user Inactive, after which the user will be restricted to log in to the company.
4. Enter the Password in the New Password field. Tally.ERP 9 displays the strength of the password
entered depending on the combination - Alphabets, Numbers and Special Characters.
Note: To unde rstand the condi ti ons that de termi ne a Passw ord's stre ngth,
cl ick Password Strength Indicator .
3. Re-enter the password to confirm in the Repeat New Password field.
5. Tally.ERP 9 displays a message Created New Company followed by the new Company Number,
press any key to return to Company Info menu.
Once the company data is encrypted the Name of the Company and Financial Year will not be visible in
the Select Company screen.
9. The Select Company screen with the encrypted company is displayed as shown.
10. Select the encrypted company, Tally.ERP 9 will prompt the user to provide the TallyVault
password.
11. Provide the required password and the company data is available for use in a readable format.
The above procedure will ensure that the data/information is available only to authorised users.
To enable TallyVault while creating a new company, you must provide the TallyVault password and
repeat the password, the new company created will be secured using TallyVault.
Go to Gateway of Tally > Press F3: Company Info > Change TallyVault
Repeat the entire process as described in Enabling TallyVault in Existing Company. The Change TallyVault
screen has an additional field Current Password; enter the present password in the Current Password field.
Enter the new password in the New Password field and repeat the same password in the Repeat New
Password field.
The user can open any report in Tally.ERP 9 and click on the E: Export button or press Alt + E to export
data.
[Img-27]
The Report Generation screen is displayed with the export details. Press Yes to accept or press Backspace to
change the export details.
Language
Based on the option selected in the Language field, the user can export reports in English or any of the
available Indian Language. When the user selects Default (All Languages) the report is exported in any
available Indian Language. If the user selects Restricted (ASCII Only), the reports are exported in English
only. However, the user has to select the appropriate display language before exporting.
[Img-28]
Note: If the use r sel ects Restri cted (ASCII Onl y) Language and uses PDF
/HTML Form at to e xport re ports of a company cre ate d usi ng any one of the
avai lable Indi an Languages (wi thout Engl i sh al i as) , the e xporte d val ue s wil l appe ar
as Q uesti on Marks (? ) .
Formats
By default Tally.ERP 9 supports the following export formats, to read more about the Export Formats click on
one of the corresponding links:
Excel (Spreadsheet)
HTML (Web Publishing)
JPEG (Image)
Tally.ERP 9 also allows you to export the data in non-editable formats such as JPEG and PDF formats. The
JPEG format has the with dual facility, where the user can store the file in printable format or as an image.
[Img-29]
By selecting the ASCII (Comma Delimited) format, the user can export all the reports or data from Tally.ERP
9. The data exported is converted to plain text separated with commas and stored in a file with the
extension .txt. This file format is widely used for emailing and used for importing data into another company
using Tally.ERP 9
[Img-30]
Excel Spreadsheet
The user can export data and reports generated in Tally.ERP 9 to Excel by selecting the Excel (Spreadsheet)
format. The report or data is put in columns and the file is saved with the extension .xls. Tally.ERP 9 also
gives the user an option to export data with formatting and background colour as it appears in Tally.ERP 9.
The user can set the formatting and background colour in the Report Generation screen. The Excel file can
be emailed as an attachment and also used to generate graphs for better presentation.
[Img-31]
Note : Export to Exce l i s compati ble wi th Microsoft O ffi ce 97 or hi ghe r ve rsi ons onl y.
Tally.ERP 9 exports the data faster when Excel (Spreadsheet) Formatting is set to No
On selecting the HTML (Web Publishing) format, Tally.ERP 9 exports the data in HTML format retaining the
colours and formatting. The file name has an extension .htm, It can be sent as an attachment and read
using an internet browser. It is recommended to choose a higher resolution for better quality output.
[Img-32]
JPEG (Image)
On selecting this format the specified report is exported as an image file which is stored with an
extension .jpg in the specified folder. The image file generated is non-editable, platform independent and
supports the highest level of compression. The user needs to specify the paper orientation and paper size,
opting to store the report on a User defined or customised paper size, the user is required to specify the
page width and height in millimeters. This image file can be mailed as an attachment to a recipient, viewed
using an image viewer and printed.
[Img-33]
The report is converted to a portable data format document which is independent of the application
software, hardware and operating system. This document can be viewed using the Adobe Acrobat Reader
commonly known as the PDF Reader. On exporting the data using PDF format, the file is stored in the
specified location and assigned the extension .pdf. While configuring the system to export data to PDF it is
necessary for the user to specify the paper orientation and paper size. On opting to store the report
with User defined or customised paper dimensions, the user is required to specify the page width and
height in millimeters. This PDF file can be mailed as an attachment to the desired recipient and viewed using
the Adobe Acrobat reader or PDF reader.
[Img-34]
Extensible Markup Language (XML) is an extension of HTML. Using XML, data can be imported by other
systems. An XML file from Tally.ERP 9 has an XML envelope and formatted with XML tags to enable import
into other systems. The destination system requires re-formatting of XSLT (XML Style Sheets) based on the
inherent style used in Tally before importing the data. When two systems are running different versions of
Tally, XML data can be directly imported using the import menu option, without re-formatting.
[Img-35]
Note : D ata store d i n Tall y 7.2 can be e xporte d to Tally 9 or Tal l y.ERP 9. How e ver data
store d i n Tal l y 9 or Tal l y.ERP cannot be e xporte d to Tal l y 7.2.
The e xporte d fil es an any of the se le cte d format are store d i n C :\Tall y.ERP 9 for Wi ndows
XP and C :\Program Fi l es\ Tal l y.ERP9 for Wi ndows 7 ope rati ng
4. Press Enter to accept the default Output Filename. In case you want to save the file in another
folder then type the desired path and filename.
[Img-36]
The exported file is saved in the default Tally.ERP9 folder or the specified folder.
4. By default, the exported file will be stored in C:\Program Files\Tally.ERP 9 for Windows
7 and C:\Tally.ERP 9 for Windows XP operating systems
5. Press Enter to accept the default Output Filename or type the filename of your choice in
order to save the file with a different name.
9. Select Yes for the Field with Colour, to retain the background colour in the exported file.
[Img-37]
The exported file is saved in the default Tally.ERP9 or the specified folder, you can use this file for further
analysis.
To Import Data
To read more on the step by step procedure for importing masters, vouchers and synchronization click one
of the corresponding links:
Masters
Vouchers
Synchronization
[Img-39]
Enter the required path and filename in the Import File Name (XML) field. If the file is located in
the default folder, then you need to provide the filename only.
In the field Treatment of entries already existing select the required Behaviour
Combine Opening Balances: Select this option to import data of different branches and
consolidate the opening balances. You can also select this option when the opening balances of
existing masters are Zero and need to be overwritten by the balances in the data being
imported.
Ignore Duplicates Select this option to import new masters along with the existing masters in
Tally ignoring the duplicates.
Modify with New Data Select this option to replace the existing balances with those existing in
the data imported and also override the other options available in Behaviour list.
[Img-40]
3. Double click on Tally.imp file located in the Tally.ERP folder to view the import log.
1. In the Import of Vouchers screen, enter the required path and filename in the Import File
Name (XML) field.
[Img-41]
3. Double click on Tally.imp file located in the Tally.ERP 9 folder to view the import log.
ODBC - in Tally.ERP 9
With Open Database Connectivity you can dynamically exchange data between Tally.ERP 9 and any other
application dynamically.
You must ensure that MS-Query is installed on the computer in which you will be installing Tally.ERP 9. This
enables ODBC as soon as Tally.ERP 9 is installed.
The ODBC server is displayed on the information block of the information pane.
To read more on the inward and outward connectivity click on one of the corresponding links below:
Outward Connectivity
Inward Connectivity
Outward Connectivity
Using the outward connectivity feature of Tally.ERP 9, you can transfer data between programs without
additional programming. The user can transfer data from Tally.ERP 9 to Microsoft Word or Excel.
1.
Generate Labels from ledger addresses stored in Tally.ERP 9
Create templates for reports, forms and plug in up-to-date data from Tally.ERP 9.
Start Tally.ERP 9. It should be open till the Mail Merge process is complete.
Go to Data > From Other Sources > From Microsoft Query (Import data for an unlisted
format by using the Microsoft Query Wizard)
[Img-52]
Click OK
[Img-53]
Note: If Tal l y.ERP 9 - 64 Bi t , the scree n appe ars as show n be l ow : O bse rve that
the DSN ( Data Source Name ) sel ecte d is Tal l yO DBC64_9000 , w he re 9000 i s the OD BC
Se rve r port numbe r.
[Img-54]
Select Ledger
[Img-55]
Expand the list under Ledger and select the required fields and move the required fields to
the right side
[Img-56]
Click Next
[Img-57]
Map the Parent as Sundry Debtors (if only Sundry debtors are required) or Sundry
Creditor (if only Sundry Creditors are required) or select both one by one, based on the
requirement.
[Img-58]
Click Next
Click Next
Click on Finish
[Img-59]
The customer data can also be seen in the Excel sheet.
[Img-60]
Press OK
[Img-61]
Tally.ERP 9,
MS Office
The ODBC feature works seamlessly when, the Operating System, Tally.ERP 9 and MS Office are all 64-bit. The
method for this is as shown above.
However, there is a driver requirement if, the Operating System is 64 Bit, while
As can be seen, in both cases there is a bitness mismatch between Tally.ERP 9 and MS Office. Due to this,
Tally.ERP 9 (which acts as the ODBC Server) will not be able to communicate with MS Excel and hence data
will not be exported.
o Select the tool regodbc64.exe and Run as Administrator. This will install the
driver tallywin64.dat
o Select the tool regodbc32.exe and Run as Administrator. This will install the
driver tallywin32.dat
To summarise,
[Img-62]
Once the driver has been installed, you can continue with the export process in MS Excel.
Indward Connectivity
Inward connectivity integrates data from other systems with Tally.ERP 9. With this feature you can use data
from other systems in Tally.ERP 9 by creating an integrated system.
For example, a customer contact management program containing details like status of an order and last
contact made can be brought into Tally.ERP 9 and merged into a report containing outstanding balances.
Changes made to the data are immediately reflected in Tally.ERP 9.
To connect to other programs and use external data in Tally.ERP 9, you can contact the nearest Tally
Offices or send an email to support@tallysolutions.com.
Printing Company Logos On Reports And Invoices
Did you know that you can now print your company’s logo on all your reports and invoices
generated by the Tally.ERP 9 system?
Whom do you think customers trust more or rate higher on credibility—a vendor
who hands over an invoice to you with the company logo on it or one who prints an
invoice on a plain sheet of paper?
The answer is, of course, the former. If you thought printing such customised
invoices and reports meant the additional expense of getting stationery printed with your
company logo, you can relax! If you have installed Tally.ERP 9 A Release 3.0 or later,
you can print your company’s logo on plain paper as this version supports image printing.
The logo images should be stored in .bmp, .jpg or .jpeg image formats.
By using the image printing feature, you can now create exclusive reports and
documents with your company’s logo, which will add to their value and render a unique
identity to each official document.
Enter the details of the sale in the relevant voucher. Then give the command ‘Alt + P’ to
enable printing.
To disable logo printing on some of the reports, ensure that the option ‘Print
Company Logo’ is set to ‘No’ in the print configuration. If any logo other than the default
one needs to be printed, provide the required path where the new logo is stored in
‘Location of logo field’.
As you may have noticed, printing logos on business invoices and reports in
Tally.ERP 9 Series A Release 3.0 is a cake walk. It is very simple and can add a touch of
finesse to any outgoing document, besides providing a professional look to your
stationery.
Data Backup - in Tally.ERP 9
Data on the computer is vulnerable to different types of threats and any data lost cannot be recovered.
Hence, there is a need to store data at a different location by taking a backup.
It is advisable to take data backup at frequent intervals as per the policies laid down by the organization and
also ensure that the data backup is secured logically and physically.
1. Select Backup
2. In the Backup Companies on Disk screen, by default the cursor is at Name of Company,
press Backspace to change the Source or the Destination.
Source – it is the source folder that contains data for which backup has to be taken, by default
it is the Data folder of Tally.ERP 9
Destination – it is a folder or an external device (pen drive/Portable Hard Disk etc.,) connected
to the same or another computer where the data backup has to be stored.
[Img-1]
3. Select the companies whose backup has to be taken from the List of Companies displayed,
then select End of List to complete the selection or select All Item to backup all the companies available in
the respective data folder.
[Img-2]
5. The Backing up Companies screen appears displaying the name of the company being
backed up and the percentage completed.
[Img-3]
Note: If the admi ni strator has e nabl e d Securi ty Acce ss, use rs ne e d to provi de the
authori se d Tal l y.NET c re denti al s i n order to acce ss the Se rve r Li st.
The List of Tally.Server Data Locations is displayed. Select the required location
[Img-4]
Note : Whi le taking a backup, i f the Li st of Companies contai ns one or more Tal l yVaul te d
compani e s, the n Tall y.ERP 9 al l ow s the use r to sel ect a si ngle
The existing Restore utility is enhanced with an additional capability to restore data backup of multiple
companies taken using the Auto Backup feature. The backup of multiple companies is stored in a single file
named TABK.900 in the user defined path provided while configuring auto backup.
While restoring the auto backup data, Tally.ERP 9 displays the backup version followed by the last update
time. This allows the user to select and restore the latest backup.
The user must ensure the following points before restoring data backup:
3. Do not restore data in the same folder as the existing data, since it may overwrite the existing
data.
To restore the back-up taken on another media, execute the following steps:
Select Restore.
The Restore Companies on Disk screen appears, enter the following details
1. Destination – is the path or the folder where data backup needs to be restored.
2. Source – is the folder or path where data backup file or auto backup files for multiple
companies are stored. The path specified can be on the same storage device/external storage
device or a storage device on the network.
Note: The l ast provi de d source and the de sti nati on paths are popul ate d and di spl aye d.
Restore
Select the required company or companies from List of Companies displayed to restore the
data or select All Items to restore data of all the companies available.
[Img-5]
The Restoring Companies screen displays the status of data being restored.
[Img-6]
On entering the Destination and Source, the Restore Companies on Disk appears as shown
[Img-7]
Similarly, select the required companies from the List of Companies displayed and select the required
backup Version from the List of Auto Backup Versions.
Or
Select All Items to restore the latest backup versions of all the available companies
The Restoring Companies screen displays the status of data being restored.
[Img-9]
[Img-10]
Note: If the admi ni strator has e nabl e d Securi ty Acce ss, use rs ne e d to provi de the
authori se d Tal l y.NET cre denti al s i n order to acce ss the Se rve r Li st.
[Img-11]
[Img-13]
3. Select the required company whose data has to be split from the List of Companies. Click here to
know how to access Tally.Server 9 data.
4. Enter the required date from which you wish to split in the Split From field.
[Img-14]
Tally.ERP will create two separate companies suffixing each company with the date from which it has been
split.
Tally recommends the Split from date to be based on the existing data. It is recommended that the Split
from date is set as the beginning of the current financial year, even though Tally permits any date.
It is advisable to take a backup of the original data on to another media before splitting the company.
Remove the company which contained three years data as you may accidentally use it for entering the
current data.
The split occurs in a set of two periods. Hence, start to split the company with the latest period. E.g., The
data is stored in the same company for a period of three years commencing rather than storing data in three
separate companies. Initially the user has to split the company for two periods between 01/01/2003 and
31/12/2005 and the other part is split for the remaining period.
Two new companies will be created between the periods 01/01/2003 and 31/12/2004, and 01/01/2005 and
31/12/2005, i.e., the historical data of one or more financial years will be preserved as one company and
your current financial year as the other. There is normally no reason to split the prior years again into
separate companies. Incase you wish to split the data for an earlier period, then repeat the above
mentioned steps.
The user can display or print financial reports such as Trial Balance, Balance Sheet, Profit & Loss, Stock
Summary etc., for each of the companies for the relevant periods and compare them for accuracy.
The user needs to alter the names of the two freshly created companies according to the requirement.
Split Data based on Financial Years - in Tally.ERP 9
Storing data in the same company for a few years has a lot of advantages, even though the data size
increases which in turn affects the overall performance of the computer. Tally.ERP 9 allows the user to split
the data based on financial years which will reduce the volume of the data, thereby reducing the load on the
computer.
When the user splits the data based on different financial years, new companies are created for the
respective split periods and the entire data is retained in the original company.
Before splitting the data the user must ensure that the following precautions are taken, failing which, could
result in mismatched information:
1. All unadjusted Forex Gains/Losses have been fully adjusted by journal entries. Verify that this
item does not appear in the Balance Sheet.
2. There are no Purchase Bills/Sales Bills due. Check the Profit & Loss Account and Inventory
Statements – Purchase/Sales Bills Pending. The user has to account them to the respective
party accounts or to respective Bills Pending Account.
Note: For use rs of Sal e s/ Purchase O rde r Proce ssi ng fe ature s: O pe n sal e s/ purchase orde rs
w il l not be carrie d forw ard on spl i tti ng. The use r has to re - e nte r the outstandi ng orde rs
afte r spli tting the company. Si mil arl y data pe rtaini ng to a cost ce ntre i s not carri e d forw ard.
Developed with an objective to reduce the repeated occurrence of possible errors while splitting the data,
this utility automatically detects possible errors in the data. On detecting these errors the system prompts
the user to rectify them with possible solutions so that the errors will not reoccur in future. Users can opt to
either resolve these errors manually or by using the helper available within this utility.
The Verify Split Data utility detects the possible error for
No Accounting Allocations
Go to Gateway of Tally > F3: Cmp Info > Split Company Data >Verify Company Data
[Img-15]
[Img-18]
3. In the Sales Voucher
[Img-19]
[Img-20]
6. Click A: Auto Fill or press Alt+A to automatically fill in the List of Cost Centres
No Accounting Allocations
This error occurs when there is a total mismatch in the debits and credit total for a transactions.
This error occurs if Cost Centre Allocation Total does not match with the ledger amount Total.
2. The list of vouchers with mismatched cost category allocations are displayed
[Img-25]
o For the Existing Cost Centre enter the correct amount in the Amount column in Cost
Allocations screen or Create a new Cost Centre and enter the difference amount
inAmount column.
[Img-26]
Cost Centre in Tally.ERP 9 allows an additional dimension to a transaction where a Ledger account indicates
the nature of the transaction. It does not readily disclose, except in the narration field, which part of the
organisation was involved in the transaction.
With the help of Cost Centres, a transaction can be allocated to it, which would then enable accumulation of
the all transactions for that particular Cost Centre. Tally.ERP 9 gives you the Cost Centre break-up of each
transaction as well as details of transactions for each Cost Centre.
Products of a company.
You can classify Cost Centres, just as how you classify Group/Ledger accounts. You can have Primary Cost
Centres and several levels of Cost Centres under each Primary Cost Centre.
Under Marketing, classify the company's sales executives as Cost Centres. This will help you track a sales
executive's performance, in terms of cost and revenue generated.
Under Marketing:
Salesman A
Salesman B
Salesman C
Allocate expenditure incurred on sales by the salesmen, as well as the sales generated by them, directly to
their Cost Centres. The allocation is done at the time of voucher entry. This prevents allocation errors at the
end of the period.
By allocating expenses and sales transactions to the salesmen, you are setting up a valuable information
system that tracks the performance of your salesmen.
Creating a Single Cost Centre in Tally.ERP 9
To create a Cost Centre, set Maintain Cost Centres to Yes in F11: Accounting Features. For parallel
allocation of Cost, you can set More than ONE Payroll/Cost Category to Yes.
By default, Tally.ERP 9 activates the Cost Centre feature for Ledger accounts under Sales
Accounts, Purchase Accounts, Expense and Income groups.
Go to Gateway of Tally> Accounts Info.> Cost Centres> Create (Single Cost Centre)
[Img-1]
A brief explanation on each of the fields in the Cost Centre Creation screen follows.
Name
Enter the name of the Cost Centre in this field. For example, Name, function, activity, department, task and
so on.
alias
Enter an alternative name, if required. For example, a short name or a code number
Under
Select the parent Cost Centre under which the Cost Centre is grouped or created from the List of Cost
Centres. If you want the Cost Centre to be a Primary Cost Centre, select Primary from the list.
The user can specify transaction details for a particular Cost Centre, then this option can be enabled and
relevant details entered in the Bank Details screen. Set this option to No for the Cost Centre Accts.
Refer Creating Cost Centres for Job Costing for details on using Cost Centres for Job Costing.
Note: Unl i ke Groups, you can all ocate transacti ons to Pri mary Cost Centres . How e ve r, you
shoul d do so w he n you do not have Sub Cost Ce ntre s unde r the Pri mary Cost Centr e .
Go to Gateway of Tally > Accounts Info. > Cost Centres > Display (under Single Cost Centre)
The Cost Centre Display screen appears. It is not possible to make any modifications to the Cost Centre
master in the Display mode. You can only view the details in this mode.
Go to Gateway of Tally> Accounts Info.> Cost Centres> Alter (under Single Cost Centre)
[Img-2]
You can delete a Cost Centre from the Cost Centre Alteration screen by pressing ALT+D.
It enables you to switch to these areas without having to quit from the current screen.
F11: Features
To change company features. For more information refer F11: Features in Tally.ERP 9.
F12: Configure
To change the configuration of master information. For more information refer F12: Configurations in
Tally.ERP 9.
Note: F12: C onf i gurati on change s affe ct all compani e s i n the data di rectory,
w he re as F11: Features change s affe ct the curre nt company onl y.
Go to Gateway of Tally> Accounts Info.> Cost Centres> Create (under Multiple Ledgers)
[Img-3]
A brief explanation on each of the fields in the Multi Cost Centre Creation screen follows.
Select a particular Cost Centre as the parent Cost Centre, to create cost centres under it. If you wish to
create cost centres under different Cost Centres, select All Items and specify the relevant cost centres in the
Under field.
Under
The Parent Cost Centre selected in the Under Cost Centre field displays automatically in the Under field for
Cost Centres created newly. If All Items is selected in the Under Cost Centre field, you have the option of
selecting the Cost Centre from the List of Cost Centres.
Displaying Cost Centres in Multiple Mode
You can display the details of multiple Cost Centres at a time in this mode.
Go to Gateway of Tally> Accounts Info.> Cost Centres> Display (under Multiple Cost Centres)
Select a Cost Centre or All Items to display the details of all the Cost Centres under it. Alteration of Cost
Centres will not be possible in Display mode.
Note : The ali as opti on wi ll not be avail able i n Multipl e Cost Centre Creati on mode .
How e ve r, you can spe ci fy al i ases to Cost Ce ntres by se le cting e ach cost ce ntre.
Go to Gateway of Tally > Accounts Info.> Cost Centres > Alter (under Multiple Cost Centres)
[Img-4]
Use <backspace> to move back to the field Under Cost Centre or use the button F4: Parent to change
parent Cost Centre. Make the necessary changes in the respective fields and Accept to save.
F4: Parent
It is used to bring up the list of Cost Centres, to select a new parent Cost Centre.
It is used for faster data entry when you need to alter only the Category and the Parent Cost Centre, but not
the names. While skipping names, you might change the Category or the parent Cost Centre to one, which
belongs to another Category, in such instances Tally.ERP 9 displays an error message at the time of
accepting the screen.
F7: Skip Parent/Edit Parent
It is used for quicker data entry, when you do not need to alter the parent Cost Centres but only the name
of the Cost Centre. While skipping Parent Cost Centres, you might change the Category or the Cost Centres
names, in such instances Tally.ERP 9 displays an error message at the time of accepting the screen.
It enables you to switch to these areas without having to quit from the current screen.
F11: Features:
To change Company features. For more information refer F11: Features in Tally.ERP 9.
By using Cost Categories you may allocate, in parallel, a transaction to more than one set of Cost Centres.
The following example illustrates the use of Cost Categories.
The Cost Centres such as Marketing, Finance and Manufacturing can now belong to a category -
Departments.
Similarly, you can create a new Cost Category Projects under which Cost Centres such as Airport
construction, Road construction and Buildings may be created. The classification appears as following:
Cost
Departments Executives Projects
Categories
Airport
Marketing Salesman A
Construction
Cost
Road
Centres Manufacturing Salesman B
Construction
Finance Salesman C Buildings
Specify a Cost Category to allow allocation of only revenue items or items of both revenue and capital
(Non-Revenue) nature. Here in this instance, enable Revenue Items and Non-Revenue Items to Yes for
Departments and Projects Categories and only Allow Revenue Items for Executives.
By allocating expenses to parallel Cost Centres under different categories, you are simply assigning the
amounts to them; the amount does not increase. Tally.ERP 9 performs an automatic reconciliation on real-
time basis, saving you the effort of reconciling Ledgers and Cost Centres.
Note: Transacti ons are not al l ocate d to Cost Cate gorie s but to Cost Ce ntre s only.
[Img-5]
This option is by default, set to No. When this option is set to Yes, Tally.ERP 9 creates a single Cost
Category called Primary Cost Category automatically and allows creation of Cost Centres under the
Primary Cost Category. However, you may also create new Cost Categories or alter existing Cost Categories.
Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Single Cost Category)
[Img-6]
A brief description on each of the fields in the Cost Category Creation screen follows.
Name
Note: The re is no sub - cl assi fi cati on of Cost Cate gori es and he nce you do not fi nd
an Under opti on. Though, the re i s a Pri mary Cost Category , i t i s not a parent of othe r
cate gorie s.
(alias)
Enter an alias, if you wish to call the Category by another name or even by a code number. This field
displays only if you set Allow ADVANCED entries in Masters in Gateway of Tally >F12: Configure> Accts/Inv
Info. to Yes.
Set this option to Yes, to allocate all sales, purchase, expenses and income related transactions to Cost
Centres created under this Cost Category. However, if you wish to allocate only capital/non-revenue items
to Cost Centres created under this Cost Category, set this option to No.
Set this option to Yes, to allocate transactions related to capital or non-revenue nature to Cost Centres
created under this Cost Category. By default, this option is set to No.
Note: Enabl e ei the r Revenue or Non-Revenue items , or both. D o not di sabl e both.
Tall y.ERP 9 se ts Yes, by d e faul t, for Re ve nue i te ms and No for Non - Re ve nue i te ms.
To view the details of the selected Cost Category masters from this mode
Go to Gateway of Tally> Accounts Info.> Cost Categories> Display (under Single Cost Category)
Select a Cost Category from the List of Categories. The Cost Category Display screen is
displayed.
You cannot make any changes to the fields in the Display mode.
Go to Gateway of Tally> Accounts Info.> Cost Categories> Alter (under Single Cost Category)
Select the Cost Category from the List of Categories. The Cost Category Alteration screen displays. Make the
changes in the required fields and Accept to save.
You may delete a Cost Category that does not have any cost centre under it from the Cost Category
Alteration screen. Use ALT+D to delete it. Tally.ERP 9 does not allow deletion of a Cost Category that has
Cost Centres.
It enables you to switch to these areas without having to quit from the current screen.
F11: Features
To change company features. A detailed explanation on features has been given in the earlier section under
Gateway of Tally.
Note: F12: C onfi gurati on change s affe ct all compani e s, w he re as F11: Features change s
affe ct onl y the curre nt company.
Go to Gateway of Tally > Accounts Info. > Cost Categories > Create (under Multiple Cost
categories)
[Img-7]
An explanation on each of the fields in Multi Cost Category Creation screen follows.
S. No.
Name of Category
Allocations for
The Allocations for column is divided into two options, Revenue Items and Non-Revenue Items.
Revenue Items
This is set to Yes, by default. However, you have the option of altering it. This denotes whether you want to
allocate revenue items to Cost Centres created under the Cost Category.
Non-revenue Items
This option is set to No, by default. You can set it to Yes, if you wish to allocate Non-Revenue or Capital
items to Cost Centres created under the Cost Category.
Note: The re is no Unde r fie l d as you cannot sub -cl assi fy Cost Cate gorie s. Cost Cate gorie s
have Cost Ce ntre s as thei r sub - cl assi fi cati on.
You can display multiple Cost Categories at a time in this mode. To display Cost Categories in the multiple
mode
Go to Gateway of Tally> Accounts Info.> Cost Categories > Display (under Multiple Cost
Categories)
The Multi Cost Category Display screen is displayed. View the details of all the Cost Categories created. It
is not possible to make any changes in display mode.
Go to Gateway of Tally> Accounts Info.> Cost Categories > Alter (under Multiple Cost Categories)
The Multi Cost Category Alteration screen displays. Make the necessary changes and Accept to save.
[Img-8]
It is used for quicker data entry when you need to alter only the Allocation details and not the names of the
Cost Categories.
It is used for faster data entry when you do not need to alter the Allocation (Revenue and Non- revenue)
details. You need to give only the names and the default allocations of Yes for Revenue and No for Non-
revenue display automatically when you are creating Cost Categories. If you are in Alter mode, the
allocations that you opted for when creating the Categories are retained.
It enables you to switch to these areas, without having to quit from the current screen.
F11: Features
It is used to change company features. For more information refer F11: Features in Tally.ERP 9.
Note: F12: C on fi gurati on change s affe ct all compani e s, w he re as F11: Features change s
affe ct onl y the curre nt company.
Go to Gateway of Tally > Accounts Info. > Cost Centre > Create (under Single Cost Centres)
[Img-9]
Category
This field appears only when you have opted for More than ONE Payroll/Cost Category in F11:
Features. Else, Tally.ERP 9 automatically creates a Primary Cost Category to which all cost centres are
assigned.
All the other fields are described in detail in the section Creating Cost Centres in Single mode
Displaying and Altering Cost Centres under Cost Categories in Single mode is similar to Displaying and
Altering Cost Centres in Single mode explained previously. The only additional field is Category.
Creating Multiple Cost Centres under Cost Categories
in Tally.ERP 9
Go to Gateway of Tally> Accounts Info.> Cost Centres> Create (under Multiple Cost Centres)
[Img-10]
This is a quick way to create multiple cost centres under a single Cost Category at a time.
Select a particular Cost Centre as the parent cost center, if you wish to create multiple cost centres under it.
[Img-11]
Category
Select the Category under which the Cost Centre will be created from the List of Categories or create a new
category by pressing [Alt+C]
Enter the name of the new cost centre. The alias facility is not available in this mode. Select single alter to
give aliases to Cost Centres created in multiple mode.
Under
Select the parent Cost Centre from the List of Cost Centres. The list displays only the Cost Centres that
belong to the selected Category.
Displaying and Altering Cost Centres under Cost Categories in Multiple mode is similar to Displaying and
Altering Cost Centres in Multiple mode explained in the respective chapters. The only additional field is
Category.
This error occurs when you try to assign a cost centre to a parent cost centre belonging to a different
category. In most places, Tally.ERP 9 prevents you from making this error, by not displaying a cost centre
belonging to a different category.
However, this action is not possible when you are altering a cost centre in multiple mode, selecting All Items
in Under Cost Centre field. (You may have chosen to skip either or both).
You would have changed the Category without changing the name and the parent. However, Tally.ERP 9
will prompt for this error only at the time of accepting the screen.
Define the Classes required and indicate which cost centres will be affected for each class. For example,
you might have the following structure:
Divisions
1. Export
2. Wholesale
3. Retail
Departments
1. Finance
2. Marketing
Where Divisions and Departments are Cost Categories and the others are cost centres.
Now, you would like to allocate sales to the following Cost Centre Classes:
1. Export Class - to allocate 100% of Export sales to the cost centre Export
2. Wholesale Class - to allocate 100% of wholesale sales to the cost centre Wholesale
3. Retail Class - to allocate 100% of retail sales to the cost centre Retail
You would also like to allocate all the sales (Export, Wholesale and Retail) to the Marketing Department.
Along with the above mentioned, you would also like to allocate Marketing Expenses on a pro-rata in the
following manner:
1. Finance – 50%
2. Marketing – 50%
With this structure, let us now set up the classes.
[Img-78]
(The other options can remain as previously set and are not discussed here.)
Click on Enter, which will pop up Auto Cost Allocations-Cost Centre Classes creation screen. Type the
Class name and select the Categories and the respective cost centres. Specify the percentage of
allocation. After entry, your auto-cost allocation screen will be displayed as shown:
[Img-79]
You have created the Cost Centre Classes as Export, Wholesale, Retail and Marketing Expenses. Divisions
and Departments are cost categories. Export, Wholesale and Retail are cost centres under Divisions.
Marketing and Finance are cost centres under Departments.
It is not necessary to have the same names for the classes and the cost centres, as shown in the above
example.
Note: Activate Maintain Cost Centers and More than one payroll / Cost
Category in F11:Features > F1:Accounting Features.
[Img-18]
Cost Centre allocations have to be done in the pop-up sub-screens in the main voucher entry
screen. The sub-screen is displayed after the amount fields pertaining to the ledger for which
cost centers have been activated. Hence, the following is the sub-screen for the ledger
Conveyance A/c.
[Img-20]
The entire objective of creating Cost Centres is to allocate expenses and revenues to Cost
Centres.
After allocating the Cost Centers, the payment voucher entry screen is displayed as shown.
Using Cost Centre Class' in Tally.ERP 9
Each voucher now contains the Cost Centre/Classes option at its head. Select Not Applicable in case
you want to allocate manually. Select a cost Centre class to auto-allocateaccording to the predefined
percentages set in that class.
Let us examine this with two examples, a sales entry and a payment entry.
Now enter the sales invoice. The cost centre allocation sub-screen will not be displayed but the allocation
will be done automatically.
After accepting the entry, check the cost centre displays to verify whether the allocation was done correctly.
Similarly, when you press F5: Payment, similar options are displayed. Select Marketing Expenses in that
case. The cost centre allocation sub-screen will not be displayed but the allocation will be done
automatically.
[Img-23]
Use PgUp to check the entry in alteration mode. It will display the allocation in the voucher.
[Img-24]
Note: You can combi ne Voucher Cl ass and Cost centre cl ass to maxi mi ze automati on.
Go to Gateway of Tally > Display > Statements of Accounts > Cost centres > Category Summary
[Img-22]
You can create any number of cost categories apart from the Primary one, which is the default category.
Each Cost Category has cost centres listed under it. The names in italics are cost centres that do not have
any sub-cost centres. The names that are in normal fonts are cost centres that have sub-cost centres
under them.
The debit and credit transaction totals and the closing balance for each cost category are displayed
together with their breakdown consisting of cost centre summaries.
Note: w e can confi gure the re port by se le cti ng the re qui re d opti ons i n F12: Confi gure .
1. From the Cost Category Summary, drill down into a cost centre for a monthly breakup of
the figures.
2. Select a month to display the Cost Centre Vouchers pertaining to that month.
3. In the Cost Centre Vouchers use F2: Period to expand the date range if required.
4. To display more detailed cost centre vouchers, set the required options in F12: Configure.
[Img-23]
The Cost Centre Vouchers screen is also accessible from all other Cost Centre Reports but the vouchers
displayed are only those that relate to the currently selected cost centre.
1. Go to Gateway of Tally > Display > Statements of Accounts > Cost Centres > Cost
Center Break-up
Use the button F5:Led-wise on the button bar to view the report in the alphabetic order of ledger
accounts.
A columnar Cost-centre breakup enables comparison of two or more cost centres and assessment of
their relative performance. Use New Column (Alt+C) to bring up the data of another cost centre for
comparison alongside. Drill down for further details.
[Img-25]
Multi-Currency in Tally.ERP 9
Many Organizations have transactions in more than one currency. Such transactions have to be
recorded either in the base (home) currency or in the foreign currency. If the transactions are
recorded in home currency, the rate at which the foreign currency is exchanged should be
recorded as well. At times you need to record the transaction in the foreign currency itself when
you maintain the balance of the concerned account in foreign currency.
Tally.ERP 9 uses the term base currency for the currency in which your account books are kept.
Foreign Exchange is used interchangeably with foreign currency. The base currency is specified
while creating the company.
The Balance Sheet and Profit & Loss Account of the company is maintained in the base
currency. Conversion of foreign currency account balances is done as per rules set by you.
[Img-79]
More:
Enabling Multi-Currency
Creating a Currency
Altering a Currency
Go to Gateway of Tally
Accept to Save.
[Img-80]
Currencies menu
Once the Multi-Currency feature is enabled in F11: Accounting Features, you can view the Currencies menu
from Gateway of Tally > Accounts Info > Currencies.
Creating a Currency in Tally.ERP 9
[Img-82]
2. Enter the currency symbol in Symbol field. This symbol appears in your reports, wherever
applicable.
Use ASCII Special Characters with [Alt] key combination, if your keyboard does not have the
symbol. Utilities like Character Map (Start > All Programs > Accessories > System Tools) in
Windows, shows the key combination for most symbols. This might be different on some
notebook computers, refer to the computer's user manual or the vendor.
The Key combinations for a few currency symbols are given below:
1.
Use the Dollar and the Rs. Symbol from the keyboard
3. Enter the name of the currency in Formal Name. e.g., US Dollars, Pound Sterling, Indian Rupees,
Omani Rial and so on.
A formal name is required to distinguish different currencies with the same symbols. For e.g.
Assume you have created two companies (ABC & XYZ) in Tally.ERP 9. ABC andXYZ have
different set of currencies. ABC uses symbol $ for Australian Dollars and XYZ uses the
symbol $ for U.S. Dollars. The formal name distinguishes two different currencies with the
same symbol, when you compare Books of Accounts of the two companies.
The company that is loaded first retains the original symbol for display purposes. The other
company's currency symbol will be prefixed with the first letter/first few letters (to make it
unique) of the formal name. Here, if ABC is loaded first then the symbol $ is for Australian
Dollars and in XYZ (loaded next) the symbol $ is prefixed with the letter U (first letter of its
formal name).
Note: You cannot assign a duplicate Formal Name for a currency in Tally.ERP 9.
4. Enter the number of decimal places for the currency in Number of Decimal Places. E.g. Currencies with
2 decimal places like paisa and currencies with three decimal places like dinar. There are currencies that do not
have decimal places, e.g., Vietnamese Dong.
5. Tally.ERP 9 has two formats for displaying an amount, viz., in millions and in lakhs. 1000000 (one
followed by six zeroes) in millions format would appear as 1,000,000 and lakhs would appear as 10,00,000.
Select the required parameter in Show Amounts in Millions field. If you select No, the amounts
will appear in Lakhs, by default.
Note: You can always specify the appearance of numbers in specific reports, e.g. In Profit &
Loss Account display, press F12: Configure to change scale factors for values.
6. Set Is Symbol SUFFIXED to Amounts to Yes for the symbol to appear after the amount. Set it to No, for
the symbol to be prefixed to the amount.
7. Set Put a SPACE between Amounts and symbol? to Yes to apply a space between amounts and symbol.
8. Enter the Symbol for Decimal portion of currency in Symbol for Decimal Portion of Amount field. Eg.,
Ps. for Paise.
9. Enter the number of decimal places for printing the amounts in words in Decimal Places for Printing
Amounts in Words field. This number should be equal to or lesser than the number specified in Number of
Decimal Places field.
Note: The Currency cannot be translated or transliterated but will appear in the Language
created.
G: Groups Ctrl+G User is allowed to create Accounting Group from the Currency
Creation/Alteration screen.
L: Ledgers Ctrl+L User is allowed to create Accounting Ledgers from the Currency
Creation/Alteration screen.
S: Cst Cat Ctrl+S User is allowed to create Cost Category from the Currency
Creation/Alteration screen.
C: Cst Ctr Ctrl+C User is allowed to create Cost Centre from the Currency
Creation/Alteration screen.
V: Vch Types Ctrl+V User is allowed to create Voucher Type from the Currency
Creation/Alteration screen.
Altering a Currency in Tally.ERP 9
You can modify or delete a currency master using the Alter option. Rates of Exchange can also be
altered from here.
[Img-83]
2. Select a Currency from the Currencies list (displayed if there is more than 1 currency)
[Img-84]
3. In the Currency Alteration screen, alter details as required. For more information
refer Creating a Currency
[Img-85]
Displaying a Currency
The Currency Display screen displays the details and rates of exchange for a selected currency.
2. Select a Currency from Currencies list (displayed, if there is more than 1 currency)
Deleting a Currency
To delete a Currency:
2. Select a currency from the Currencies list (displayed, if there is more than 1 currency)
Go to Gateway of Tally > Accounts Info > Currencies > Rates of Exchange
[Img-86]
[Img-87]
2. Enter the Standard Rate (optional) which is used to calculate variances from the actual
transaction rates
5. Accept to Save
Note: Last Vouche r Rate i s di spl aye d, i f any vouche r has be e n e nte re d e arli e r.
Selling rate is your selling rate (as opposed to bank's selling rate) used for receipt voucher entry where
you receive foreign exchange.
This is the rate obtained from your banker or also available in the daily newspaper. Once the Selling
Rate is specified in the Rates of Exchange menu, while entering a foreign exchange transaction, the
rates are defaulted automatically. However, you can alter the rate as required.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is no
standard rate.
Buying Rate – Specified Rate
Buying Rate is your buying rate (as opposed to bank's buying rate) used in payment vouchers.
The actual rate at which the currency was last used is displayed and cannot be changed.
The specified rate is used for calculating foreign exchange variances only in case where there is
no standard rate.
Note: Tal l y.ERP 9 automati cal l y cal cul ate s Fore x Gain or Loss for f orei gn exchange
transacti ons usi ng the standard rate s, speci fi e d rate s and actual transacti on rate s
spe ci fi e d in the Rates of Exchange me nu.
G :Groups Ctrl+G User is allowed to create Accounting Group from the Rates of
Exchange screen.
L: Ledgers Ctrl+L User is allowed to create Accounting Ledgers from the Rates of
Exchange screen.
S: Cst Cat Ctrl+S User is allowed to create Cost Category from the Rates of
Exchange screen.
C: Cst Ctr Ctrl+C User is allowed to create Cost Centre from the Rates of
Exchange screen.
Go to Gateway of Tally > Accounting Vouchers / Inventory Vouchers > Click F9:
Purchase button or press F9 key
Select the Stock Item in the Name of Item field and enter the quantity
Specify the price in the currency other than base currency in the Rate field and press Enter
Tally.ERP 9 will automatically prompt you to enter the Rate of Exchange for Base Currency as shown:
[Img-25]
[Img-26]
Go to Gateway of Tally > Accounting Vouchers / Inventory Vouchers > Click F8: Sales button or
press F8 key
Select the Stock Item in the Name of Item field and enter the quantity
Specify the price in the currency other than base currency in the Rate field and press Enter
Enter the Rate of Exchange for the base currency and press Enter
[Img-27]
Set the option Print Base & Foreign Currency for Total to Yes. Enabling this option will
print the Total amount in both Base Currency and the Foreign Currency
[Img-28]
To capture the transaction details of reconciled vouchers and provide flexibility to drill-down to the last
level of voucher entry, a new report - Bank Reconciled Transactions has been introduced.
The option to calculate interest based on either Bank reconciliation date or voucher date will be displayed
for ledgers grouped under Bank Accounts, Bank OCC A/c and Bank OD A/c. The interest calculated
on:
Ensure the option - use advanced parameters below Activate Interest Calculation of F11:
Features > F1: Accounts is set to No.
Create the ledger Canara Bank A/c by grouping it under Bank Accounts and set the option - Activate
Interest Calculation to Yes.
[Img-40]
In the Interest Parameters screen, select the Bank/Reco Date as the Date Type in the Calculate
Interest Based on field. Provide the other parameters as shown and accept theInterest
Parameters and the bank Ledger Creation screen:
[Img-41]
In the Ledger Creation screen, click F11: Features > F1: Accounts set the option - use advanced
parameters below Activate Interest Calculation to Yes.
In the Ledger Alteration screen of Canara Bank A/c ledger, set the option - Activate Interest
Calculation to Yes and press Enter key. In the Interest Parameters screen, select theBank/Reco
Date as the Date Type in the Calculate Interest Based on field. Provide the other parameters as
shown and accept the Interest Parameters and the bank Ledger Creation screen:
[Img-42]
Voucher Entry
Let us record payment voucher on 1-5-2013. Go to Gateway of Tally > Accounting Vouchers > F5:
Payment
Click F12: Configure and set the option - Use Single Entry mode for Pymt/Rcpt/Contra to Yes and
accept the Voucher Configuration screen. Record the payment voucher and provide the bank details.
[Img-43]
Note: To provi de bank de tai ls w i th re marks, cli ck F12 : Confi gure in the Payme nt voucher
and se t the opti ons as show n:
[Img-44]
The Payment voucher appears as shown:
[Img-45]
In the Accounting Voucher Creation screen, click F12: Configure and set the option - Use Single Entry
mode for Pymt/Rcpt/Contra to No and accept the Voucher Configurationscreen. Record the
payment voucher and provide bank details.
[Img-46]
The Payment voucher appears as shown:
[Img-47]
Note: To di spl ay D r/ Cr i nste ad of To/ By i n the vouche r, cli ck F12 : Conf i gure and se t the
opti on - Use C r/Dr i nstead of To/By duri ng entry to Yes.
Since the bank ledger is configured to calculate interest based on reconciliation date, interest will be
calculated only if the transactions are reconciled.
To view the Interest Calculation report, go to Gateway of Tally > Display > Statement of
Accounts > Interest Calculation > Ledger > Canara Bank A/C
Scenario 1: Reconciling the Payment Vouchers and Viewing Interest Calculated on Simple
Parameters
To reconcile the payment voucher, go to Gateway of Tally > Banking > Bank
Reconciliation > Canara Bank A/c
For the payment vouchers recorded in the previous section, enter the reconciliation dates as shown and
accept the Bank Reconciliation screen:
[Img-48]
To view the Interest Calculation report after reconciling the payment vouchers, go to Gateway of
Tally > Display > Statement of Accounts > Interest Calculation > Ledger >Canara Bank A/C
Click F2: Period and enter the From and To dates as 1-5-2013 and 31-5-2013 respectively. The Interest
Ledger report appears as shown:
[Img-49]
Depending on the dates entered for reconciliation, the interest gets calculated and displayed here.
Scenario 2: Reconciling the Payment Vouchers and Viewing Interest Calculated on Advanced
Parameters
In the Interest Calculation report, click F2: Period and enter the From and To dates as 1-5-2013 and
30-6-2013 respectively to view the interest for the period of June as defined in the advanced interest
parameters. The Interest Ledger report appears as shown:
[Img-50]
Depending on the dates entered for reconciliation, the interest gets calculated and displayed here.
To view the Bank Reconciled Transactions report, press Enter on any one of the balances displayed in
the Ledger Interest report.
(Go to Gateway of Tally > Display > Statement of Accounts > Interest
Calculation > Ledger > Canara Bank A/C > Press Enter on any one of the balances)
Click F2: Period and change the From and To dates as 1-5-2013 to 30-6-2013 respectively.
Click F12: Configure and set the options as shown to choose the required sorting option and capture the
narration, remarks and favouring name in the Bank Reconciled Transactions report:
[Img-51]
The Bank Reconciled Transactions report appears as shown below:
[Img-52]
The Bank Reconciled Transactions report provides columnar details on reconciled transactions. The description of
each column is given below:
Bank Date: The Bank Date provided in the Bank Reconciliation screen is captured here.
Vch Date: The date on which the transaction is recorded is captured here.
Particulars: The remarks and narration entered in the payment/receipt voucher are captured under the name of
the ledger:
Favouring Name/Received From: The details entered in the Favouring Name/Received From field in the Bank
Allocation screen of payment/receipt voucher is captured here.
Note: To provi de de tail s i n the se fi el d, e n sure the re le vant informati on i s provi de d i n
the Bank Detai l s ( displ aye d on se tti ng the opti on - Provi de Bank Detai l s toYes) i n the
party l e dge r maste r.
Vch Type: The voucher type used to record transaction is captured here.
Transaction Type: The transaction type selected in the Bank Allocations screen of the payment or receipt
voucher is captured here.
Instrument No.: The instrument number entered in the payment or receipt voucher is captured here.
Instrument Date: The instrument date entered in the payment or receipt voucher is captured here.
Debit: The amount debited to the bank ledger in the voucher is captured here.
Credit: The amount credited to the bank ledger in the voucher is captured here.
Interest Calculation in Simple Mode in Tally.ERP 9
To calculate Interest in the Simple Mode:
3. The Interest Parameters sub screen is displayed. Enter the Rate and select the interest
style from the list.
Enter Interest details in Vouchers (only in case of transaction by transaction/Bill-by-bill) and view
Interest reports.
You will have to alter existing ledger accounts to permit interest calculations on them. The same
operation will apply when creating a new ledger account.
Interest calculation on outstanding balances is allowed for any ledger account. You simply specify the
interest rate and style of calculation. Nothing is required to be done for interest during voucher entry.
3. On activation, the Interest Parameters must be set. It is the basis on which interest will
be calculated for this Ledger account.
4. Rate: This is the rate at which the interest has to be calculated. In this case, specify 15%.
5. Interest Style: It is the basis on which the rate is applied. Of the four options, select 365-
Day Year.
You can now view the amount of interest that could be charged by the Bank.
Transaction by transaction or Bill-by-Bill interest calculation is permitted for 'Party' accounts like
accounts falling under the groups Sundry Debtors and Sundry Creditors. For example:
1. Alter a Customer account (under the group Sundry Debtors or one of its sub-groups).
2. Set Activate Interest Calculation to Yes. In the Interest Parameters now you have three
lines to answer.
If set to No, you are not allowed to change interest parameters in voucher/invoice entry. If set to Yes,
you can change the interest parameters during entry.
The report is similar to the Bill-wise Outstanding Statement. The last column gives the interest amount
on the transaction. Select the line to be viewed in detail for its calculations.
Go to Gateway of Tally> F11: Features > Accounting Features > Set Activate
Interest Calculation to Yes. > Set Use Advanced Parameters to Yes.
For Ledgers created under the Group Sundry Debtors/Sundry Creditors, the Interest Parameters
sub-screen is displayed as shown below:
[Img-26]
Set Override Parameters for each Transaction to Yes, if you want to override the
interest rates and parameters set here during voucher entry.
Select the interest rate calculation period from the Interest Style list in the Per field.
Select the choice of balances for which the interest has to be calculated from the Interest
Balances list in the On field. The balances are All Balances, Credit Balances only and Debit
balances only. Interest can be calculated on all outstanding balances, whether debit or
credit. You would like to select only credit balances in case of accounts like Bank accounts,
if you want to know the interest that the bank might charge on overdrawn balances.
Select the rounding method applicable from the Rounding Methods list. The amount can
be rounded off normally or upward or downward. If you do not want any rounding method,
select Not Applicable.
For Ledgers created under the Group Bank Accounts, or if the option Calculate Interest Transaction
by Transaction is set to No, then the Interest Parameters sub-screen is displayed as shown below.
[Img-27]
Enter the interest rate in the Rate field.
Select the interest rate calculation period from the Interest Style list in the Per field.
Select the choice of balances for which the interest has to be calculated from the Interest
Balances list in the On field. The balances are All Balances, Credit Balances only and Debit
balances only. Interest can be calculated on all outstanding balances, whether debit or
credit. You would like to select only credit balances in case of accounts like Bank accounts,
if you want to know the interest that the bank might charge on overdrawn balances.
Specify the interest rate applicable period from the Applicable From: and To: fields.
Select the rounding method applicable from the Rounding Methods list. The amount can
be rounded off normally or upward or downward. If you do not want any rounding method,
select Not Applicable.
[Img-28]
You can Override Advanced Parameters during voucher entry. Hence, each entry could
have different parameters.
Choice of Balances – All Balances, Credit Balances only, Debit Balances only.
Applicability - This actually applies to the viewing of the statement and not the levy of
interest.
Calculate from - You can decide whether interest is to be levied from the Due Date or
from the Effective Date of the transaction (or the voucher date if effective date is not
activated) or even Date ranges specified during Voucher Entry.
[Img-29]
Note: To obtai n the opti on C al cul ate f rom Date Speci f ied during Entry , you must
have O ve rri de advance d parame te rs se t to Ye s. The opti on i s re qui re d i f you w ant to
spe ci fy i nte re st to be calcul ate d at di ffe re nt rate s for di ffe re nt peri ods. If you choose to
ove rri de parame te rs the n i nformati on w oul d be aske d duri ng vouche r/i nvoi ce e ntry. The
i ntere st i nformati on i s re qui re d afte r the bill -w i se detail s have bee n e nte re d.
Press the button F1: Detailed on the Button bar to see the calculation and the period. Previous
transactions are calculated from Effective date of Transaction as default. Date Specified during Entry
has not been used.
Note: Part moni e s recei ved have be e n accounte d for and i nte re st cal cul ate d on the
bal ance .
[Img-30]
You have set up the Interest Parameters for CP Ltd to calculate on Dates specified during Voucher
Entry.
[Img-31]
We have seen the reports on interest amounts calculated in different ways but these have not been
brought into books! They simply give you the interest implications. You must book them now.
Use Debit notes for Interest receivable and Credit Notes for Interest Payable. Interest is
calculated on Simple or Compound basis and separate classes should be used for them.
Set up Debit Notes. Credit Notes will behave the same way.
[Img-33]
Likewise, create a Class – Compound Interest and set Yes to Amounts to be treated as Compound
Interest.
Accept the Voucher Type and return to the Gateway of Tally. Create a ledger account Interest
Received under Group Indirect Income.
Voucher Entry for booking Interest
Simple Interest – Interest amounts are not debited onto the same bills. Create a
fresh reference for it.
Debit CP Ltd
When you debit the party account, a list of bills for which interest is applicable pops up. Select the bills
to adjust. Note that even cleared bills appear.
[Img-34]
Select the respective interest bills from the list . The debit amount is filled up with the total. Select New
Ref in the bill-wise allocation. In the interest sub-screen, ensure that the rate of interest is 0.
Now, Credit Interest Received. The amount is already filled in.
Entries for compound interest are exactly the same as for Simple Interest where all you do is select
the Voucher Class Compound Interest. Also the Bill-wise details popup sub-screen does not come up as
the amounts are added onto the bills.
Select the required bill from the list and complete a Debit Note.
[Img-36]
The Bill reference CP/00466993 is the invoice onto which interest has been compounded.
A new Reference no 2 has been created for Simple Interest due from CP Ltd.
Compound Interest
Make the following entries in a Debit note with Compound Interest Voucher Class
Debit Bank Ltd (the amount is automatically filled up with the calculated interest)
And nothing needs to be done! The Bank Account has been increased by the amount of interest due and
the Income account of Interest Received also credited.
Simple Interest
However, since it has the effect of increasing the Bank Ltd account with the amount due (compound
effect), you must make a journal entry to reverse it. The reversal entry would be something like this:
We have to necessary go this route to take advantage of the auto filling of the interest amount which
can appear only when we use the Bank Ltd account in Debit Note in the first place.
There are two types of reports, one pertaining to interest on balances of accounts like loans, and the other
interest on overdue invoices.
Interest reports are available for individual ledger accounts as well as for Groups
Go to Gateway of Tally> Display > Statements of Accounts > Interest Calculations > Group
The Cr in the interest amount should not be confused to mean an Income. It only means that it is payable and
is a liability.
To ease interest recording, Tally.ERP 9 has an interest template, a special voucher class in Debit
Note and Credit Notes.
Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not be
confused to resemble an Income. It only means that it is payable and is a Liability.
To ease interest recording, Tally.ERP 9 has an interest template, a special voucher class in Debit Note and
Credit Notes.
The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the
transaction. Press F1: Detailed to see the calculation.
Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger
[Img-39]
Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not
be confused to mean an Income. It only means that it is payable and is a liability. The figure is illustrative only
and you will need to account for the interest expense and liability through a journal entry.
To ease interest recording, Tally.ERP 9 has an interest template, a special voucher class in Debit
Note and Credit Notes.
Creating a Budget in Tally.ERP 9
To create a Budget in Tally.ERP 9
2. Select from the List of Budgets for Under field. You can have a hierarchical setup for
budgets. In the List of Budgets, Primary is at the top of the hierarchy and you can create
more primary budgets. Sub-budgets can be created under Primary budgets.
3. Enter the period of the budget in the From and To fields. The period entered can be a
month, a year or any other period.
5. Accept to save.
[Img-
Deleting a Budget
To delete a budget:
Press Alt+D.
[iMG-15]
In the Group Budget screen, select a Group from the List of Groups and enter Account Name.
Enter the cost centre for a group in Cost Centres field, select Not Applicable, if the budget is not for
a particular cost center.
[iMG-16]
1. On Nett Transactions
Select this option to monitor the transaction amounts and not the balances. Nett is net of debits and
credits for the specified period. Nett transactions Budgets specified for a period automatically gets
apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for
the specified period after reducing the credits for the same period is considered without taking into
account opening and closing balances. For example to compare transactions against budgets, especially
revenue income and expenses On Nett Transactions can be selected.
2. On Closing Balance
Select this option to monitor the balances of the Accounts and the not the transactions. i.e., each
month will have the same budget value except that the actual Opening Balance is also taken into
account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances
and so on. For example to compare closing balance figures in final statements, especially Balance Sheet
items like assets and liabilities, select Closing Balances.
[iMG-17]
Note : Group Budgets do not ge t apporti one d w he reas Ledger Budgets ge t
apporti one d for e ach month.
[Img-18]
In the Ledger Budget screen, select a Ledger from the List of Ledgers and enter Account Name.
[Img-19]
Budgets can also be defined for Cost Centres pertaining to Ledger Accounts wherein you can repeat
the same ledger with another Cost Centre.
Enter the cost centre for the Ledger Account in the Cost Centre field. Select Not Applicable if the
budget is not for a particular cost centre, but for the company.
[Img-20]
1. On Nett Transactions
Select this option to monitor the transaction amounts and not the balances. Nett is net of debits and
credits for the specified period. Nett transactions Budgets specified for a period automatically gets
apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for
the specified period after reducing the credits for the same period is considered without taking into
account opening and closing balances. For example to compare transactions against budgets, especially
revenue income and expenses On Nett Transactions can be selected.
2. On Closing Balance
Select this option to monitor the balances of the Accounts and the not the transactions. i.e., each
month will have the same budget value except that the actual Opening Balance is also taken into
account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances
and so on. For example to compare closing balance figures in final statements, especially Balance Sheet
items like assets and liabilities, select Closing Balances.
[Img-21]
Note : Le dge r Budge ts get apporti one d for e ach month.
1. In the Cost Centres field in the Budget Creation/Alteration screen, set Yes to set
budgets for cost centres.
[Img-22]
2. In the Cost Centre Budget screen, select a Cost Centre from the List of Cost Centres and
enter Cost Centre.
3. Enter a budget figure in Expenses for the cost centre.
6. Accept to save.
[Img-23]
Gateway of Tally > Display > Trial Balance to display the Trial
Balance screen.
Gateway of Tally > Display > Account Books > Group Summary and select a
group from List of Groups to display the Group Summary screen.
2. Click on Budget Variance (Alt+B) from the toolbar to display the Budget
Analysis screen.
[Img-24]
Note : Use C ol um n functional ity to add/ remove col umns for Multi -peri od or Mul ti -
budget C om parati ve Variance report .
[Img-25]
Corporate budget Column displays the values of the Budget, which is defined.
Actuals Column displays the value of Actual Expenditure incurred.
Corporate Budget Variance displays the values of the Variance of the Actuals and Budgets. i.e.,
Budgets – Actuals = Variance .
Note: If the Budget Vari ance show s the negati ve val ue , the n the actual e xpendi ture
val ue has e xcee de d the Budge te d val ue s.
Scenario Management in Tally.ERP 9
Scenario management is a management tool that enables different displays of accounts and inventory
related information, by selectively including certain types of vouchers without affecting the source data.
It is useful in generating provisional reports, where entries are not actually made in the main books. It is
also a useful forecasting tool i.e. you can forecast the expenses using provisional Vouchers and include
them in your reports.
Optional Vouchers
Memorandum Vouchers
Reversing Journals
This section shows you how to use the above-mentioned vouchers in Reports. You can create a number
of scenarios each including and/or excluding one or more types of voucher entry.
More:
Create a Scenario
3. Set Exclude Forex Gains/Losses Calculations to Yes if you do not want the Unadjusted
Forex Gain/Loss element to appear in the scenario
4. Set Exclude Inventory Tracking Calculations to Yes if you do not want the
Sales/Purchase Bills Pending element to appear in the scenario
5. Include - From the list of vouchers, include the type of vouchers required. Notice that it
picks up the Voucher Types created for this company. Provisional Vouchers and Regular
vouchers that are marked Optional are permitted for selection.
6. Exclude - Exclude from the list of vouchers already included in the type of vouchers that
you do not want to affect this scenario. This option is used in Alter mode and hence is
discussed under Alter/Display Scenario Information.
The information given while creating the scenario displays and you can alter it.
Exclude
Use the Alter mode, when you do not want a selected included voucher to affect the scenario,
anymore. It is easier to put the selected voucher in the Exclude List, rather than to remove it from the
Include List.
More:
Go to Gateway of Tally > Display > Exception Reports > Reversing Journals
1. Select a month to list all the reversing journals for that month. Drill-down to view/alter
the entry.
The Balance sheet displays as shown with two columns for the same date.
[Img-111]
Note: the Provi si on for Depre ci ati on fi gure s in both the col umns. The actual column
show s 18250 w hil e the Provi si onal column show s 33250. Thi s is on account of the
re ve rsi ng journal e ntry i n the Sce nari o. To vie w , go through the Exce pti onal Reports
D i spl ay Me nu.
Use the same procedure to create another scenario for Sales Forecasts.
3. Create 12 Sales Vouchers, one in each month. Remember to mark them Optional.
4. View the Sales Accounts by drilling-down the Profit & Loss A/c.
5. Bring up New Columns and limit each column date range to the following month.
The banking transactions can now be provided with Bank Allocation details such as
the Transaction Type, Instrument No, Date, etc. A single bank amount can also be allocated
tomultiple transaction types such
as Cheque, Electronic Cheque, Electronic DD/PO, Inter Bank Transfer, Others and Same Bank Transfer based
on the requirement.
The BRS screen now provides detailed information with regard to transaction types, instrument no., instrument date,
cheque favouring, etc. The user can also provide Opening BRS forunreconciled transactions.
Cheque Printing:
Allows user to configure cheques for banks using sample formats provided, which come along with images.
Allows user to print the pending or already printed or the required cheques continuously from a single
screen.
Also allows user to update the cheque details and have track of cheques to be printed, of a selected or all
banks.
Cheque Register
Allows user to configure cheque number ranges for Auto cheque numbering based on cheque range.
Report for cheques issued (like the issue log slip in the cheque books)
Inventory of cheques available (not used)
Bank Reconciliation:
This screen will now provide detailed information with regard to transaction types, instrument no.,
instrument date, cheque favouring, etc.
Deposit Slips:
Bank-wise Cash Deposit Slips for the Cash being deposited can be generated automatically along with cash
denominations.
Cash Deposit Slips that are required to accompany Cash that is being deposited to the Bank can be
generated automatically along with cash denominations.
Payment Advice:
The payment advice sent to the suppliers / other parties along with the cheques/other instruments may be
generated quickly from the voucher itself.
When the existing users of Tally.ERP 9 access their company data using Tally.ERP 9 Release 3.0 for the
first time, will migrate the Banking vouchers.
The Transaction Type row in the Bank Reconciliation screen will be blank. The user
may alter the vouchers and select the appropriate transaction type (Cheque/DD) in
the Bank Allocation table and accept the vouchers, in case required.
[Img-2]
The Instrument Date displayed in the Bank Reconciliation screen will be
the Voucher Date. The reconciliation will be based on the Instrument Date provided
in the Bank Allocation table and not on the Voucher date.
[Img-3]
The Bank Reconciliation screen lists the transactions on the basis of each transaction type selected in
the voucher.
Example: A single banking voucher having Cheque/DD and Electronic Cheque as Transaction type will be
considered as two transactions in the Bank Reconciliation screen.
More:
Banking Features
Cheque Printing
Payment Advice
Cheque Management
[Img-5]
Alter List of Transaction Types: On setting this option to Yes, the Alteration of Transaction Types
screen opens. In this the user can include or exclude Transaction Types, as required
[Img-6]
Note: At - le ast one Transacti on Type shoul d be e nabl e d for Payments and Recei pts.
Show Additional Bank Details For: Banking Details include Account Number, IFS Code, Bank Name
for Inter Bank Transfers and Account Number for Same Bank Transfer. On enabling this option, all
these Additional Details will get displayed during Voucher entry. If the user doesn't want to display these
details during entry, the option None can be selected.
Allow to Enter Beneficiary Code: On enabling this option, a button B:Show Beneficiary Code/Hide
Beneficiary Code is available in the Ledger Master Creation/Alteration screens. This will help the user
enter Beneficiary Code, specific to the Bank selected in the Company
Note: All Le dge r Creati on/Al te rati on scree ns have the opti on Al l ow to Enter
Benefi ci ary C ode , e xce pt C ash , P& L and Bank
Show Transfer Mode: Enabling this option, will display the Mode of Transfer (NEFT/RTGS) in the Bank
Allocations screen for Inter Bank Transfers transaction type while
passing Paymentsand Receipts voucher entry. This will get picked up during voucher entry using Voucher
Class
Enable Bank Details for Cost Centres: This option is available only if Cost Centres and Cost Categories are
enabled for the Company. On setting this to Yes, the Cost Centre Creation screen will have the option Provide
Bank Details.
Import Beneficiary Bank Account Details: Bank Account Details of the beneficiary can be imported in Excel
Format, if this option is set to Yes
If this option is set to Yes, the Import of Data screen appears as shown below:
[Img-7]
Enter the Import File Name, along with the location path to import the required Excel File
The Select Bank screen displaying the List of Bank appears as shown:
[Img-8]
Select All or the required Bank account from the List of Bank.
Press Enter.
By default, this screen displays list of pending cheques of the current date’s month.
[Img-10]
Note: Thi s button toggl e s be twe e n Show Al l / Hi de Pri nted .
Bank Not Configured for Cheque Printing
The cheque printing screen will prompt with a message Bank not configured for Cheque
Printing when the bank ledger not configured for cheque printing is selected, as shown:
[Img-11]
The bank needs to be enabled for cheque printing from ledger alteration screen.
Select the required row from the Cheque Printing list to open the voucher
in alteration mode.
F4: Bank: Allows to select All / Other required Bank from the list.
F12: Range: Allows to filter the Cheque printing screen. The user can filter the transactions
based on the Amount, Bank Date, Date, Favouring Name, Instrument
Date,Instrument No., Ledgers, Narration, Remarks and Transaction Type as shown:
[Img-13]
Printing Cheques / Cheque Printing Reports
The user may print All or selected cheque from the Cheque Printing list.
Select the required Bank account from List of Bank. To change the selection made,
press F4: Bank button to select another bank.
The Print Report screen appears. Set the option Print Cheque to Yes as shown:
[Img-14]
Note: The opti on - Pri nt C heque appe ars onl y i f a parti cul ar bank is sele cte d for
pri nting che que s. O n selecti ng All Items for di spl ayi ng pe ndi ng che ques of di ffe re nt
banks i n che que pri nti ng scre e n, thi s opti on w ill not appe ar.
The Cheque Printing proceeds and displays confirmation for each cheque with Cheque
Details, as shown:
[Img-15]
Confirm to print cheque one by one before printing. Additionally the facility to change
the orientation and adjust the distance of top edge and left edge with flexibility to avoid
printing the date on cheque is provided.
Printer Selection
Press S: Select Printer button to select the printer and the paper size. Select the paper size as A4.
Orientation
In the Sample Cheque Printing screen, press N: Orientation button (Alt+N) to select the orientation.
The orientations - Vertical and Horizontal gets listed.
[Img-16]
On selecting Vertical - centre/left/right the cheque gets printed in vertically (oriented as portrait).
Using these options, the cheque can be printed by setting the orientation to:
Vertical Left: On inserting the paper in the printer tray, the cheque gets printed vertically
on the left hand side of the paper.
Vertical Centre: On inserting the paper in the printer tray, the cheque gets printed
vertically at the centre of the paper.
Vertical Right: On inserting the paper in the printer tray, the cheque gets printed
vertically on the right hand side of the paper.
Additionally for printing the cheque face up or face down with vertical orientation, the field - Print
From (for Vertical Only) gets displayed. Depending on the printer, the front or rear can be selected.
Rear: For printers which print face down place the paper in reverse order and select Rear.
Overall Adjustment
The cheque dimensions pre-configured on selecting the cheque format can be adjusted such
that the overall dimensions get shifted by the required 'mm' from top and left edge of
cheque.
While printing the cheque, date field can be left blank if it is not required to be printed.
From the Sample Cheque Printing screen, click on F12: Configure button and change/retain the
dimensions in 'mm' as per requirement.
[Img-17]
Adjust Distance From Top Edge (in mm): To adjust the distance from top edge such
that the overall measurements defined in Cheque Dimensions screen get shifted as per the
'mm' entered here.
Adjust Distance From Left Edge (in mm): To adjust the distance from left edge such
that the overall measurements defined in Cheque Dimensions screen get shifted as per the
'mm' entered here.
Print Amount in Foreign Currency: Set this option to Yes, to print cheques for foreign
currency transactions in the respective currency.
Print Date: By default the date gets printed on the cheque. If the date is not to be printed
on the cheque set this field to No.
Accept the configuration and print the cheque. The adjustments done for overall adjustment using F12:
Configuration of cheque printing screen does not affect the settings of Cheque Dimensions pre-
configured for the selected cheque format.
o Include Printed Cheques also: Set this option to Yes to display the printed cheques also
in the report.
o Show Forex Transactions only: Set this option to Yes in case you need only
the forex transactions to be displayed in the report.
Note: Thi s opti on appe ars onl y i n case Mul ti Currency fe ature i s e nabl e d for the
company.
o Show Payment Favouring: Set this option to Yes to display Favouring Name details in the
report.
o Show Remarks also: Set this option to Yes to display the Remarks in the report.
On setting Print Cheque it to Yes, the options - Include Printed Cheques also, Show Payment
Favouring and Show Remarks also gets set to No automatically as the user has opted to print
cheque. If Print Cheque is set to No, a statement displaying all entries including details of printed
cheques can be generated with information about favouring name and remarks as entered in the Bank
Allocation sub-screen of payment voucher.
[Img-19]
Accept to Print.
The user may configure the Cheque Printing screen based on his requirement.
To configure,
[Img-21]
By default this is set to Yes. The cheque printing will confirm for each cheque before printing.
By default, this option is set to No. Set it to Yes to display the Printed Cheques also
Note: Thi s opti on i s si mi l ar to the functi on ke y F6: Show Al l / Hi de Pri nted .
By default, this option is set to Yes. The cheque printing screen displays the Favouring Name column.
Note: The Favouri ng Nam e col umn di splays onl y those names w hi ch are di ffe re nt from
the Party/Ledge r account name s.
By default, this option is set to No. Set it to Yes to display the Remarks also.
Appearance of Name
Select the required Display Name Style from the list to display in cheque printing screen.
Sorting Method
In Tally.ERP 9, Bank Reconciliation capability is enhanced to view, import the bank statements and
to Auto Reconcile the transactions.
For Auto Bank Reconciliation (importing Bank Statement), valid Tally.NET Subscription and Internet
Connectivity are required for performing auto reconciliation. To know how to enable Auto Bank
Reconciliation,
Go to Gateway of Tally > Banking > Bank Reconciliation > select the Bank > Bank
Reconciliation statement appears
[Img-22]
For banks enabled with the feature of auto reconciliation in ledger master, the buttons:
B: Bank Statement and R: Reconcile Unlinked appear on the right side button bar
D: Delete Unlinked button appears on the button bar above Info Panel.
Note: The faci li ty to Imp ort and Vi e w Bank State me nts wi ll ge t e nable d onl y for banks
e nable d wi th auto reconciliati on fe ature in bank l e dger cre ati on / al te rati on mode .
Bank Statement
Bank Statement button with the facility to view and import is provided to meet the customers
requirement. There could be cases where the user just want to view it and not import the statement
directly or wants to view it before it is imported, mainly to confirm that it’s the same file that has to be
imported.
Reconcile Unlinked
Once the transactions are imported and reconciled, if there are any entries appearing under the
section Amount not reflected in Company Books the Reconcile Unlinked button needs to be used to
reconcile it.
Delete Unlinked
Tally.ERP 9 makes it possible for the user to view the Excel, MT940 or .CSV files in a readable format,
with an option of choosing to import or not to.
Click on B: Bank Statement button or press Alt+B key.
On pressing the button, the Bank Statement File screen displays the Directory which was specified as
the Location of Bank Statements in F12: Configuration > Banking Configuration. Select the
required file format in File Type field based on the format of bank statement being imported.
In File Name field, a list of Excel files will get displayed. To view the Bank Statement which would
be imported, click the button I: With View or press Alt+I.
[Img-23]
Press F12: Configure. The option Show Imported Bank Statement will be displayed and set
to Yes by default. Using this option, the bank statement which is already imported can be selected again
for import. The files will be listed in alphabetical order with details of file type and import status
(showing whether it is already imported or not).
[Img-24]
In the Bank Statement screen which is previewed press I: Import button. Users must ensure that the
bank statements being imported haven’t been edited or altered in any way. If any changes are made,
the error message - Not a valid format will be displayed while importing the statement.
During import, the Import progress bar gets displayed followed by the Success message with count
of Total Entries in Bank Statement, transactions Reconciled and Additional Bank Entries.
[Img-25]
The Bank Reconciliation Statement with Imported Bank Statement details appears as shown:
[Img-26]
4.
The Balance as per Company Books reflects the balance as on the last date (in the example, it is
30th April).
The Amounts not reflected in Bank are the debit and credit sums of all those vouchers, whose Bank
Date is either BLANK, or LATER than 30-Apr (i.e. these vouchers have not yet been reflected in the
bank statement).
The Amount not reflected in Company Books are entries which are present in the bank statement
but are not recorded in company's books.
The Balance as per Bank is the net effect of the Book Balance offset by the amounts not reflected in
the Bank – which must be equal to the balance in the bank statement.
Note: Some di scre pancie s ma y pe rsi st due to entrie s made i n the bank state ment, w hich may
not have be e n e nte re d i n the books of accounts.
However, there may be transactions which have been executed at the bank’s end (example, bank
charges, interest credit etc.) but not yet reflected in the books of accounts. Such transactions will
appear under the Amount Not Reflected in Company Books in BRS statement with the required
details.
[Img-27]
User can either Reconcile Unlinked transactions to existing transactions or create a new
voucher (to create vouchers click on C: Create Vouchers button or press Alt+C key) using this
information or delete them.
Note: It is sugge ste d to save the Bank Reco nci l i ati on be fore reconcili ng the
Unl i nked Transacti ons to avoi d mi stake s.
1. Reconcile Unlinked
In this example, there is a withdrawal of 2,500 on 23-4-2012 which is not reconciled. To reconcile
the transaction select the transaction displayed under Amount Not Reflected in Company Books and
click on R: Reconcile Unlinked button or press Alt+R.
[Img-28]
Application will display the transaction(s) matching the Transaction amount for selection. Select the
appropriate transaction using spacebar and press Enter. The Status will be displayed
as Reconciled Successfully.
To reconcile all unlinked transactions without having to select one by one simply the reconciling process,
press R: Reconcile All Unlinked. This option provides a simple and convenient option to
reconcile transactions from the imported statement and company's book from a single screen without having to
manually match the transactions.
[Img-29]
An Unreconciled Transactions screen will display matching transactions and the amount not reflected which
is about to get reconciled is shown under Transaction from Bank Statements to be Reconciled as shown
below:
[Img-30]
Press Quit or Esc to skip the current transaction and proceed to the next for reconciliation.
To stop the reconciliation process, press Alt+S:Stop
If there are no matching transactions, then the screen will be blank and the amount not reflected will be
showing the transaction on the top. In case, there are no transaction to link, a message No unreconciled
transaction exists with same amount will be displayed as shown below:
[Img-32]
If there is any transaction which is not reflected in the books of accounts, click C: Create
Voucher button or press Alt+C key to navigate to Voucher Creation screen.
[Img-33]
On recording the transaction against the Amount Not Reflected in Company Books, the details
displayed will be removed from the Amount Not Reflected in Company Bookssection indicating that
the corresponding entry is found in the books of accounts.
Note: You can re cord a Payment/Receipt/Journal vouche r to account for those
e ntri e s that are not re fl ecte d i n Company Books.
4. Error on re-importing the Excel/csv file
While selecting the bank statement for importing, the statement which is already imported will also
appear. To hide the imported statement, click S: Hide Imported button. On using this button only the
statement which is not yet imported gets displayed. The Hide Imported is a toggle button which can
also be used to Show Imported statements.
[Img-34]
In cases where the user has already imported an Excel/csv file and tries to re-import it by mistake, an
error message will be displayed indicating that Bank Details are reflected in your books of accounts.
[Img-35]
To view difference in Bank Balance click on F12: Configure and the option Show Difference in Bank
Balance to Yes
[Img-36]
The difference in Bank Balance (difference in Balance as per Bank and Balance as per Imported
Bank Statement) will be shown in Bank Reconciliation Statement. In the Bank Reconciliation screen,
the Balance as per Imported Bank Statement refers to the balance displayed on importing the bank
statement for reconciliation.
[Img-37]
The user can also provide opening BRS for unreconciled transactions.
Alter the voucher by selecting the required transaction from the Bank Reconciliation
screen.
Filter the report to display transactions based on Amount, Bank Date, Instrument No,
Instrument Date, Party ledger, etc.
The Select Bank screen displaying the List of Bank appears as shown:
[Img-38]
Select the required Bank account from the List of Bank and press Enter.
The Bank Reconciliation screen of the selected Bank appears. By default the details in the Bank
Reconciliation screen are sorted based on Bank Date (if bank date is already specified for the
transaction). Or else, such sorting will be based on the Instrument Date.
[Img-39]
Note:
1. The Bank Re conci liati on scre en can al so be acce sse d from Gateway of
Tal l y > Di spl ay > Accounts Books > Cash/Bank Books >
Se le ct Bank Ledger >Select a month > F5: Reconci l e .
2. By de faul t, the scre en di spl ays the pe ri od range from date spe ci fi e d i n the Ef f ecti ve
Date for Re concili ati on i n the Bank le dge r maste r til l the date of l ast entry .
3. The Bank Date has be to be pro vi de d base d on the Instrument Date and not
on Voucher Date .
F2: Period
Press F2 key or click F2: Period to specify a period for which the Bank Reconciliation screen is to be
displayed.
To set a bank date for all the transactions for reconciliation, click S: Set Bank Dates button or
press Alt+S key.
Instrument Date: On selecting Instrument Date as the Bank Date Type, the Bank
Date field for all the transactions in the Bank Reconciliation screen is filled with the
instrument date entered for that transaction in the Bank Allocations screen.
New Date: On selecting New Date as the Bank Date Type, a new field Date appears in
the Set Bank Date sub-screen.
[Img-41]
Specify the required bank date that is to be filled for all the transactions in the Bank
Reconciliation screen.
Voucher Date: On selecting Voucher Date as the Bank Date Type, the Bank Date field
for all the transactions in the Bank Reconciliation screen is filled with the Date of Voucher.
C: Create Voucher:
Press Alt+C key or click C: Create Voucher to create a voucher from the Bank Reconciliation screen
itself.
U: Opening BRS
In Tally.ERP 9 Series A Release 3.0 onwards the user may provided opening BRS to the unreconciled
transactions using this function.
The BRS feature was used in the middle of the financial year by setting Effective Date
of Reconciliation in Bank ledger master in Tally.ERP 9, or
In these cases the user had to manually keep track of the unreconciled transaction until they are
reconciled.
The Opening Bank Allocation screen for the selected Bank is displayed as shown:
[Img-42]
[Img-43]
The Bank Reconciliation screen is displayed with opening BRS provided as shown:
[Img-44]
Provide the date of the realised transactions (the amount reflecting in the bank passbook)
in the Bank Date field provided.
Press Ctrl+Enter on the required transaction row to open the voucher in alteration mode.
F12: Range
Allows to filter the Bank Reconciliation screen. The user may filter the transactions based on the
Amount, Bank Date, Date, Favouring Name, etc as shown:
[Img-45]
The user may configure the Bank Reconciliation screen based on his requirement.
To configure,
[Img-46]
By default, all the vouchers are displayed. Select the required Ledger Entries type from the list.
Set this option to Yes to display the remarks in the Bank Reconciliation screen as shown:
[Img-47]
Set this option to Yes to display the forex details also in the report.
By default, this option is set to Yes. The cheque printing screen displays only the forex transaction.
Note: The opti ons Show Forex detai l s al so and Show Forex Transacti ons
onl y appe ar onl y in case Mul ti Currency fe ature i s e nable d for the company.
Set this option to Yes to display the reconciled transactions also in the Bank Reconciliation screen.
Set this option to Yes to allow reconciling back dated transactions also.
Set this option to Yes to display the Payment Favouring / Received From details in the Bank
Reconciliation screen.
1.The Favouri ng Nam e col umn di spl ays onl y those name s w hi ch are di ffe re nt from
the Party/Ledger account name s.
2. Bank Re concili ati on capabi li ty has bee n e nhance d, from thi s scree n use rs can
* Vi e w the vouche r di spl ay by pre ssi ng Al t + Enter from Bank Date fi el d
* Al te r the Vouche r by pre ssing Ctrl +Enter from Bank Date fi el d
Set this option to Yes to display all the Unreconciled Transactions till the given date, irrespective of
the From date set in the Bank Reconciliation Statement.
Note:
1. Thi s opti on i s al so avai labl e i n Gateway of Tall y > F12:Confi gure > General .
2.The opti on se t wi ll be appl i cabl e to all the banks for the sel e cte d company.
Appearance of Name
Select the required Display Name Style from the list to display in cheque printing screen.
The user may print the Bank Reconciliation statement for the required Bank.
o Select Vouchers to Show: By default this is selected as All Vouchers, select the required
option from the Ledger Entries list.
o Show Narrations also: Set this option to Yes to display the narration in the report.
o Show Remarks also: Set this option to Yes to display the remarks in the report.
o Show Forex details also: Set this option to Yes to display the forex details in the report.
o Show Forex Transactions only: Set this option to Yes to display the forex transactions
only in the report.
Note: The opti ons Show Forex detai l s al so and Show Forex Transacti ons
onl y appe ar onl y in case Mul ti Currency fe ature i s e nable d for the company.
o Show Reconciled Transactions also: Set this option to Yes to display the reconciled
transactions also in the report.
o Show Payment Favouring/Received From: Set this option to Yes to display the Payment
Favouring/Received From details in the report.
Accept to Print.
In some cases users may alter the reconciled vouchers by changing/splitting the amount, in such cases
Tally.ERP 9 will display the message asking the confirmation to continue with the alteration. Users can
later a reconciled voucher from Day Book, Bank Conciliation or from voucher reports.
Here ABC company is altering the voucher dated 3-7-2010 (already reconciled) where the company has
issued the cheque for Rs. 1000 to Supreme Computers
Note: To al te r a vouche r from Bank Reconci l i ati on re port, from Bank Date fie l d pre ss
Ctrl + Ente r
The amount of 1000 has been split into 600 & 400. On saving this voucher Tally.ERP 9 displays the
message indicating the reconciled voucher is altered and bank balance in BRS will not Match, hence
Bank Date will be removed.
Go to Gateway of Tally > Banking > Deposit Slip > Cheque Deposit Slip.
The Select Bank screen displaying the List of Bank appears as shown:
[Img-53]
The Cheque Deposit Slip screen of the selected Bank is displayed as shown:
[Img-54]
Note: The Che que D e posi t Sl i p scre e n di spl ays onl y those transacti ons w hi ch
have C heque/DD as Transacti on type all ocate d i n the Bank All ocati on tabl e i n
the Recei pt vouche r e ntry.
Select the required row from the Cheque Deposit Slip list and press Enter to open the
voucher in alteration mode.
F4: Bank allows to select other required Bank from the list.
F5:Cash allows user to view cash transactions (for the same Bank).
F6: Show All allows user to view the transactions for which cheque deposit slips haven’t
been printed or to view all transactions for that bank for the period mentioned.
[Img-55]
Note:
The Received From i s an addi ti on fie l d avai labl e i n the Che que De posi t Sl i p scre e n to
spe ci fy the name of Indi vidual / Busi ne ss O rgani sation w ho has i ssue d the cheque , to be
pri nte d in the de posi t sli p / re port.
Whe n the use r tri e s to acce ss F12 : Range for fi l te rs i n Edi t Che que D e tail s scree n, wi ll
prompt to Accept the curre nt scre e n be fore proce e ding.
Ctrl+P: Mark as Printed allows to mark all the Cheque Deposit Slips as Printed at once.
F12: Range allows to filter the Cheque Deposit Slip screen. The user may filter the cheque
details based on the Amount, Bank Date, Date, Party Ledger, etc as shown:
[Img-56]
The user may select All or the required receipts to be included in the Cheque Deposit
Slip. The Cheque Deposit Slip report prints all the receipts for the selected period.
Go to Gateway of Tally > Banking > Deposit Slip > Cheque Deposit Slip.
The Cheque Deposit Slip screen is displayed with the list of receipts.
o Date of Printing: By default, the current date is displayed. Specify the required date to be
printed in the Cheque Deposit Slip.
o Space to leave on Top (default 0.5 inches): Set the required space.
o Show Received From: Set this option to Yes to print the Received From details in the
deposit slip.
o Print Company's Telephone Number: Set this option to Yes to print the Company's
Telephone Number.
Note: The opti on Show Forex Transacti ons onl y w ill ski p w he n you are opti ng to pri nt
the C heque Deposi t Sl i p .
Accept to Print.
Go to Gateway of Tally > Banking > Deposit Slip > Cheque Deposit Slip.
o Print Cheque Deposit Slip: By default, this option is set to Yes. Set this option to No to
print the report.
o Space to leave on Top (default 0.5 inches): Set the required space.
o Show Forex Transactions only: By default, this option is set to No. Set this option
to Yes in case you need only the forex transactions to be displayed in the report.
Note: Thi s opti on appe ars onl y i n case Mul ti Currency fe ature i s e nabl e d for the
company
o Show Received From: Set this option to Yes to display the Received From details in the
report.
Accept to Print.
[Img-59]
Note: The Recei ved From col umn wi ll di spl ay the rece i ve r's name ( provi de d i n
the Bank All ocati on) , only i f i t i s di ffe re nt from the Party/ Le dge r Name di splaye d
i n Parti cul ars col umn.
The user may configure the Cheque Deposit Slip screen based on his requirement.
To configure,
[Img-60]
By default, this option is set to No. Set it to Yes to display only the forex transactions.
Note: Thi s opti on appe ars onl y i n case the company is e nable d
w i th m ul ti currency fe ature .
Show Received From:
By default, this is set to No. Set it to Yes to display Received From column in the Cheque Deposit Slip
screen to specify the details as shown:
[Img-61]
By default, this is set to No. Set it to Yes to display Bank and Branch columns in the Cheque Deposit
Slip screen.
By default, this is set to No. Set it to Yes to display Remarks column in the Cheque Deposit Slip
screen.
Appearance of Name:
Select the required Display Name Style from the list to display in deposit slip screen.
Sorting Method:
The Cash Deposit Slip provided in Tally.ERP 9 has all the contents of cash deposit slip – Account Number,
Account Holder Name, Bank Name, Branch Name (information is fetched automatically from Bank ledger),
Company’s Telephone Number, (information is fetched automatically from Company Creation screen), and
Cash Denomination Details (information is fetched automatically from Contra voucher), so that user will not
have to manually enter all the details.
Go to Gateway of Tally > Banking > Deposit Slip > Cash Deposit Slip.
[Img-62] [Img-63]
Select the required Bank account from the list for whose transaction you want to print Cash
Deposit Slip and press Enter.
The Cash Deposit Slip screen of the selected Bank is displayed as shown:
[Img-65]
Note: The C ash Deposi t Sl i p scre en di splays onl y those transacti ons w hi ch
have C ash as Transacti on Type all ocate d i n the Bank Al l ocati on scree n i n
the C ontra vouche r e ntry.
Select required row from the Cash Deposit Slip list and press Enter to open the voucher
in alteration mode.
F4: Bank is used to toggle between the banks from the same screen. This will reduce navigation
time.
F5: Cheques allows user to view transactions for which Cheques/DDs have been received (for the
same Bank), and print Cheque Deposit Slip for the same.
F6: Show All allows user to view the transactions for which cash deposit slips haven’t been printed or
to view all transactions for that bank for the period mentioned.
F12: Range allows user to filter Cash Deposit Slip screen. User may filter the transactions based on
the Amount, Date, Bank Date, Instrument Date, etc. as shown:
[Img-66]
This is a useful tool, as it makes the process of finding particular transactions fast, easy and simple.
Cash Deposit Slip can be printed for all or just selected transactions.
Cash Deposit Slip Report can be printed for all the transactions for the selected period
Go to Gateway of Tally > Banking > Deposit Slip > Cash Deposit Slip
The Cash Deposit Slip screen displays the list of transactions for the bank selected.
To print Cash Deposit Slip for selected transactions,
[Img-67]
Date of Printing: The date that has to be printed on the Cash Deposit Slip has to be specified in
this field. By default, the current system date is displayed. Usually, this date will be the date on which
the actual deposit of the cash into the bank will be made.
Space to leave on Top (default 0.5 inches): This is the space between the top of the page and the
Title (First Line on the page). User can specify the dimension as per requirement.
Print Company's Telephone Number: Set this option to Yes to print the Company's Telephone
Number. The Telephone Number specified in the Company Creation screen will be captured.
Print Company’s PAN/IT Number: The PAN or IT Number specified in the F11: Features (F3:
Statutory & Taxation) will be captured. By default, this option is set to No.
A new screen will appear where Cash Denomination details can be specified for individual
transaction, as shown:
[Img-68]
By default, it will take the cash denominations specified in the Contra voucher. If the Cash
Denominations are different during actual cash deposit in bank, click on No or press N or Escand
enter the Cash Denomination details.
Accept to print.
Note: If A /c Hol der Name i s not me nti one d i n the Bank l e dge r maste r, the n the name
of the company as me nti one d in the Company Creati on scre e n w il l be pri nted
as Account Hol der Nam e of the Cash Deposi t Sl i p.
The Cash Deposit Slip for the first transaction will be printed.
For the next transaction selected, a new Cash Denomination details screen will appear. User can specify the
details and print the Cash Deposit Slip.
A separate Cash Deposit Slip will be printed for all the selected transactions.
[Img-70]
Print Cash Deposit Slip: When all the transactions are selected for printing, user can print a report of
the Cash Deposit Slip by setting this option to No. By default, this option is set to No.
Date of Printing: By default, the current date is displayed. Specify the date to be printed in the Cash
Deposit Slip. This date should be the date on which the actual deposit of the cash in the bank will be
made.
Space to leave on Top (default 0.5 inches): This is the space between the top of the page and the
Title (First Line on the page). User can specify the dimension as per requirement.
Print Company's Telephone Number: Set this option to Yes to print the Company's Telephone
Number. The Telephone Number specified in the Company Creation screen will be captured.
Print Company’s PAN/IT Number: The PAN or IT Number specified in the F11: Features (F3:
Statutory & Taxation) will be captured.
A new screen will appear where Cash Denomination details can be specified for individual
transaction, as shown:
[Img-72]
By default, it will take the cash denominations specified in the Contra voucher. If the Cash
Denominations are different during actual cash deposit in bank, click on No or press N or Esc and
enter the Cash Denomination details.
Accept to print.
The Cash Deposit Slip is displayed as shown:
[Img-73]
The Cash Deposit Slip for the first transaction will be printed.
For the Next transaction selected, a new Cash Denomination details screen will appear. User can specify the
details and print the Cash Deposit Slip.
A separate Cash Deposit Slip will be printed for all the transactions.
Note: 1. If the opti on Pri nt Consoli dated Cash Deposi t Sli p i s se t to Yes, the n
a bl ank C ash Denom i nation detail s scree n i s di spl aye d and a combi ned Cash D e posi t
Sl i p is pri nte d for al l the transacti ons sel ecte d.
2. O n fi ll ing i n the de tai l s in thi s scre en and pre ssi ng Ente r at the e nd, a noti fi cati on i s
di spl aye d – Detai l s entered here wil l not get updated in the vouchers .
Go to Gateway of Tally > Banking > Deposit Slip > Cash Deposit Slip.
[Img-74]
Print Cash Deposit Slip: Set this option to No to print the Cash Deposit Slip report.
Space to leave on Top (default 0.5 inches): This is the space between the top of the page to the
Title (First Line on the page). User can specify the dimension as per requirement.
Show Remarks also: Set this option to Yes to display the Remarks in the report.
Accept to Print.
The Cash Deposit Slip Report is displayed as shown:
[Img-75]
User may configure the Cash Deposit Slip screen based on requirements.
To configure,
[Img-76]
This option, when enabled, is used to print a single Cash Deposit Slip for all selected transaction. By default,
this is set to No. Set this option to Yes, to generate a Consolidated Cash Deposit Slip of the selected
transactions.
Note: This opti on wi ll w ork i n accordance w ith the F6: Show All opti on i n the Button
Bar.
To view the remarks entered in the Contra voucher, set this option to Yes. A Remarks column will appear in the
Cash Deposit Slip screen. By default, this is set to No.
Appearance of Name:
In the Cash Deposit Slip screen, user can choose the Display Style of the name under Particulars column;
Alias (Name), Alias Only, Name (Alias) or Name Only, using this option.
Sorting Method:
List of transactions can be sorted by user by selecting any of the Sorting Methods from the list. The
transactions can be sorted in ascending or descending order based on – Amount-wise, Date, Instrument Date,
Instrument Number, Party-wise. By default, the transactions are sorted in ascending order based on Date.
The ledger selection screen displaying the List of Ledgers appears as shown:
[Img-77]
Note: If Al l i te ms i s sel e cte d, the payme nt advice for al l transacti ons wil l be displ aye d
The Payment Advice screen displays the payment list of the selected ledger as shown:
[Img-78]
Select the required row and press Enter to open the voucher in Alteration mode.
Press F12:Configurations for more options as shown below:
[Img-79]
Confirm each payment advice before Print/e-Mail: If user selects multiple transactions for
mailing/printing belonging to different Parties, then the confirmation screen will be displayed one by one for
each party's payment advice. If this option is set to No then Confirmation screen display once.
Note: The opti on wi ll come w he n user sel e cts "All Ite ms' and not w he n i ndi vi dual le dge r
i s sel ecte d
Start Fresh page for Print/e-Mail : When this option is set to Yes, if user selects multiple transactions for
mailing/printing belonging to same Party, then print/mail for one transaction will happen per page at a time
(without combining all into one page)
Press F12:Configure
o Set Yes to Start fresh page for each transaction for Print/e-Mail as shown below:
[Img-81]
[Img-82]
o Payment Advice Date: By default, the current date is displayed. Provide the required date
o Include Bill Details: By default, this options is set to No. Set it to Yes to include the bill
details in the payment advice
o Show Transferred to: By default, this options is set to No. Set it to Yes to show
the transferred information like A/c No, IFS code, Bank Name which is applicable for Inter
& Same Bank Transfer
o Print Due Date: By default, this option is set to No. Set it to Yes to print the due date in
the payment advice
o Print Company’s PAN/IT Number: By default, this option is set to No. Set Yes to print
the PAN/IT No of the company
F2: Period
F4: Ledger
Press F4 key or click F4: Ledger button to select other required Ledger from the list.
P: Mark as Printed
Press P: Mark as Printed or click Ctrl + P to mark the transaction as printed. When data is migrated
from a lower release to release 4.8, many of the transactions for which payment advice have already
been printed will appear as not printed in release 4.8. This option can be used to mark those
transactions as printed.
F12: Configure
Click F12: Configure button or press F12 key from the Print Report of the Payment
Advice screen
[Img-83]
Note: The Payme nt Advi ce Pri nting Confi guration scre e n al l ow s the use r to
e nable / di sable Pri nti ng Com pany Logo . The Location of Logo se t i n F11: Accounting
Features w ill be the pre - fil le d i n thi s scre e n w hi ch can be al te re d as pe r re qui reme nt.
Set the required options and press Ctrl+A to save the settings
The Print Report screen appears.
The print previews of the selected Payment Advices will be displayed as one payment advice per page as
shown below:
Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use
Single Entry mode for Pymt/Rcpt/Contra in F12: Configure.
[Img-85]
To use Auto Cheque Numbering during Bank Allocation the following options in F12: Configure has to be
enabled:
The Nickname will appear as defined in the Provide Bank Details during the ledger
creation.
The Favouring Name and Amount fields are prefill based on the Payment entry
recorded.
The Transaction Type is set to Cheque by default. This can be changed based on
requirement.
o User can choose a Cheque Range (Cheque Books) from the list of Cheque books defined for
the bank, in the Cheque Range field.
o The Cheque Number will be automatically filled in the Instrument Number field. User still
has the option to manually change the Cheque Number, if required.
Note: If the Che que numbe r e nte re d doe s not fall in the sel ect Che que Range , Tall y.ERP
9 w il l throw an e rror - The Instrument number entered i s out of the Cheque
range and the cursor wil l re turn to the Instrument Number fi el d.
For each allocation, a different range can be chosen or the same cheque range can be
chosen. When the same range is chosen, the subsequent cheque numbers will be
automatically filled in Instrument Number field.
Once Bank Allocations are done, accept the Payment voucher by pressing Y or Enter, or by
clicking on Yes.
[Img-89]
If the Cheque Printing is enabled for the Bank, once the payment voucher is accepted, the Cheque Printing
screen will appear.
User will know how many cheques are available for use.
Report can be viewed either Bank-wise or Cheque Range wise or drill-down to Cheque
numbers.
Users are allowed to change the status of cheques (Available) to Cancelled or Blank and
make cancelled cheques available.
Report can be viewed period-wise, hence makes it easier to filter the cheques that are
issued on particular date or during a particular period.
Cheque Register
Cheque Register
[Img-90]
[Img-91]
The first level of the Cheque Register displays all the Banks and gives the number of total cheques which are
Available, Unreconciled, Reconciled, Blank and Cancelled.
To view the break-up of the statics based on the Cheque Ranges, press F1: Detailed.
[Img-92]
The period of the report can be changed using the F2: Period option.
Using F5: Reconcile button, users can go to the Bank Reconciliation screen for a
particular bank.
To search for a particular cheque’s details, press S: Quick Search. Part of the cheque
number can be used to search for a cheque. The search results will have all the cheques
which have the search string as shown:
[Img-93]
To view all the Cheques that belong to a particular status like Available, Blank Cheque,
Cheque Cancelled, Reconciled and Unreconciled, irrespective of banks and Cheque Ranges,
users can press Ctrl+S (Show All) and select the Status.
[Img-94]
When Enter is pressed from a Bank, Cheque Register shows the statistics of all the Cheque Ranges of that
bank, as shown:
[Img-95]
When the cursor is on a Cheque Range, to reconcile the cheques that are used in that
range, press F5 or click on F5: Reconcile. Tally.ERP 9 will list out all the transactions
corresponding to the Cheques in that range that have to be reconciled.
Ctrl+S (Show All) option can be used to view all the cheque numbers of a particular
status, irrespective of the Cheque Ranges, for the selected bank.
To view all the transaction details of all the Cheques in the Bank press F7 or click on F7:
Transactions. All the details of every cheque for that bank will be displayed as shown:
[Img-96]
Note: To vi ew all the transacti ons of all the che que s i n a parti cul ar range ,
pre ss Enter from that range .
To view the cheques for a particular period, press F2 or click on F2: Period.
To toggle between the different Cheque Ranges in a bank from the same screen,
press Ctrl+C (Cheque Range).
[Img-97]
Press Alt+F5 or click on F5: Status wise, to get a Status wise statistics of the cheque
range.
[Img-98]
To view all Cheques of a particular status, press F6 or click on F6: Status. A new screen
will appear where user can choose among the different statuses of cheques.
[Img-99]
To change the status of a cheque, select the Cheque Number and press Alt+A or
click A: Alter Status. The status of Available cheques can be updated
as Blank orCancelled. The Status of Cancelled cheques can be changed to Available.
For Available Cheque Numbers, users can create a voucher from this screen itself.
Press Alt+C or click on C: Create Voucher to record a transaction for a selected cheque
number. The Payment Voucher Creation screen will appear, where you can record the
transaction.
Note: This opti on wi ll be hi ghli ghte d onl y i f che que s are sel ecte d.
For cheques that are already used and are not a part of any cheque range, users can define
a Cheque Range in the Bank ledger, and can add these Cheque numbers to the new book
(Cheque Range) created using the Alt+R (R: Refresh Range) option.
Altering Cheque Status
Select the Cheque Number and press Alt+A or click A: Alter Status.
The options Use Reversing Journals & Optional Vouchers and Allow Zero valued
entries to Yes in F11: Features (F1: Accounting Features).
[Img-100]
Select an Available Cheque Number and press Alt+A or click A: Alter Status.
[Img-102]
User can change Voucher Number and Amount field. No other field is allowed to be
altered.
If Amount field is left blank and the voucher is accepted, the status of the cheque in the
Cheque Register will be Blank.
Once the value is entered in Amount field, the Blank Cheque tag will disappear. The status
of the cheque in the Cheque Register will be Unreconciled.
Cancelling a Voucher will automatically change the Status of the Cheque(s) used in that
voucher to Cancelled.
In case a new cheque has to issued for a transaction for which the issued cheque cannot be
used due to various reasons like - lost in transit, torn cheque etc., the previously used
Cheque has to be cancelled. You will have to follow the below procedure:
o Go to Voucher Alteration screen of the Cheque which has to be cancelled, and change
Cheque number
o In Cheque Register, the status of Cheque number which was changed, will be
under Available.
o Press Alt+A or click on A: Alter Status, and select Cheque Cancelled, give a Date on
which the Cheque was cancelled and enter the reason for cancellation in Remarks field.
[Img-103]
o Accept the screen. The Cheque’s status in the Cheque Register will be Cancelled.
Select a Cancelled Cheque Number and press Alt+A or click A: Alter Status.
[Img-104]
Press Enter or click on Yes to reuse the Cancelled Cheque.
Press F12 or click on F12: Configure, the Configuration screen will appear:
[Img-105]
The cheque numbers that are entered manually by the user and which do not belong to any Cheque
Range can be brought to the Cheque Register report by setting this option to Yes. This way all the cheques
used can be managed from a single place.
[Img-106]
Cheque Books that are completely used, i.e., the Status of all the cheques is other than Available, can be
ignored while viewing Cheque Register by setting this option to Yes.
In F11: Features (F2: Inventory Features) under Purchase Management, set Track additional
costs of Purchase to Yes.
[Img-1]
The additional costs/ expenses incurred can be allocated to each item based on:
Quantity
or
Value
Alter the Parent Group of the expense ledger accounts, e.g. Indirect Expenses. (Go
to Gateway of Tally > Accounting Info > Groups >Alter > Direct Expenses).
You will find a new option - Method to Allocate when used in Purchase Invoice.
If you want to appropriate the ledger accounts under this group to stock items either by
Quantity or value, you must select the respective option. For ex: Select Appropriation by
Qty.
[Img-2]
Purchase entry in As Voucher mode: The additional cost details have to be filled in after the
allocation of each purchase item.
While creating the Purchase Voucher, once after giving the Quantity and Rate in the Inventory
Allocations, press Enter button on the Amount column, Additional Cost Detailsscreen will be
displayed.
[Img-3]
Type of Cost
% age
Additional costs can be entered in terms of percentage also. For example, 1%, 2% etc. You can also skip
the percentage field to enter the amount directly.
Amount
You can enter the amount of additional cost directly or if the percentage is entered, then amount will be
calculated automatically.
Note: If the re are tw o or more i te ms, the n for i te ms, the ‘Addi ti onal Cost De tail s’
scre en wi ll be di spl aye d.
[Img-4]
Purchase entry in As Invoice mode: The treatment of additional costs on stock items is automated.
[Img-5]
[Img-6]
Total of no of quantities = 30
200 / 30 * 10 = 66.66
More:
To enable Price Levels, Set the following fields to Yes in F11: Features > F2: Inventory
Features screen.
1. Allow Invoicing (If you do not set this option to Yes, the options for Price Lists will not
be available.)
[Img-57]
3. Type the name of the price levels to be created, in the Company Price Levels screen.
[Img-58]
4. Press Ctrl + A to accept the screen and return to the F11: Inventory Features screen. Set
the other options as required and accept Yesto save.
Altering Price Levels in Tally.ERP 9
This option allows you to alter the existing Price Levels.
Go to Gateway of Tally > F11: Features > F2: Inventory Features screen.
1. Tab down to Use Multiple Price Levels field and press Enter to go to Company Price
Levels screen.
Follow the same procedure as discussed in Creating Price Levels, to alter the name of a price level.
You can simply overwrite the names you specified previously and save the changes.
You can have one or more price lists. You may require more than one price list, when you have different pr
structures/levels for different purposes viz., different groups of customers requiring different discounts or dealing in differe
products.
Tally.ERP 9 permits you to create any number of price lists, based on the Stock Group and Stock Category to match the structure
you need.
Once you have created Price Levels, the Price List option appears in the Inventory Info. menu
[Img-60]
Go to Gateway of Tally > Inventory Info. > Price List > Stock Groups
If you want to create a Price List consisting of all stock Items falling under different Stock Group
select Stock Groups from the Price List Menu.
[Img-61]
[Img-62]
Note: To view all the Stock Items under the selected Price Level, click on F12: Configure and set t
option Show all Items for Price Level to Yes.
Type the applicable rates for the stock items for the selected Price Levels (you will notice that
the items grouped under Components appears under List of Items).
[Img-63]
Accept to save
Under Group
This is the stock group of the Stock Item, for which you want to define the Price Lists.
Price Level
This is the Price Level under which the Price List needs to be created
Applicable From
This is the date from which the defined Price List is applicable.
Sl. No
This column is auto-generated serial numbers to track the number of items in the Price List.
Name of Item
This column contains the Name of the Stock Items under the selected Stock group. You can define the Price L
for each item.
These fields are repeated for an item and begin with a blank for 0 items and end with a blank for any number
items (i.e., upto 50 Nos you can have a certain pricing if someone buys more than 50Nos you can specify
different rate). This is useful for quantity based pricing and discounts. You can create a staggered quant
price structure, if required.
If you do not require quantity based pricing, leave From and Less Than fields blank.
Rate
Under this column, you can specify Rate, the Rate for the item based on the quantity range given.
You can define a discount percentage in the Price List which will be taken automatically in the sales invoic
you may also choose to maintain the same price for all bands, but define different discounts.
This column displays the last Price List specified for such Stock Group.
There are two columns: Rate and Disc %. Tally.ERP 9 provides the historical details of the sale rate a
discount percentage of any previously created Price Lists. Therefore, you can define the current price deta
based on the information given in the Historical details.
Cost Price
In this column, Tally.ERP 9 displays the cost price of the item calculated based on the stock valuation meth
given in the item master. This has been provided to assist the user in giving the appropriate sale price.
viewing the historical price details of an item, we can accordingly define the sale price for the new Price List.
Note: For the discount percentage to be taken in the Price List, you should activate the feature Separa
Discount Column on Invoices in the F11: Features (Inventory Features).
Select this option to change the parent Stock Group Name, Price Level from the List.
Go to Gateway of Tally > Inventory Info. > Price List > Stock Categories
If you want to create a Price List consisting of all stock Items falling under different Sto
Categories, select Stock Categories from thePrice List Menu.
[Img-64]
Type the applicable rates for the stock items for the selected Price Levels
[Img-65]
Select this option to change the parent Stock Category Name, Price Level from the List.
Select the relevant buttons while the price list is displayed for it to be printed /
Go to Gateway of Tally > Inventory Info. > Price List > Stock Groups
1. Select the required Stock Group Name from the List of Stock Groups.
2. Select the required Price Level from the List of Price Levels.
Follow the same procedure as discussed in Creating a Price List, to alter the Price Lists.
Note: Si mil arl y you can alte r the Pri ce Li st base d on Stock Category .
To vi e w al l the Stock Item s unde r the sel e cte d Pri ce Level , cli ck on F12:
C onf i gure and se t the option Show all Items f or Pri ce Level to Yes.
[Img-66]
You can choose the Price Level that you want to assign to the Ledger, by selecting the Price Level from
the Price Levels list in the Pricing Level Applicable field. Select Not Applicable, if you do not want
to assign any Price Levels to the Ledger.
If you want to assign Price Levels to ledgers created earlier, alter the ledger account, tab down
to Pricing Level Applicable field and select the applicable price level from the list.
Note: For a Le dge r, you ca n onl y assi gn / tag onl y one Pri ce Le vel at a ti me , how e ve r
you can change the Pri ce Level sele cti on de pe nding upon your re qui re me nt in al terati on
mode or duri ng Vouche r Entry.
1. Select As Invoice.
[Img-67]
3. Accept to save
During Invoicing, there is an additional field Price Level enabled once Price Levels feature is activated
and is prefilled with the Price Level which are specified for the selected Party ledger and the cursor skips
this field.
You may change the Price Level during Invoicing by pressing F12: Configure and
setting Yes to Allow modification of ALL fields during entry.
Set Allow modification of ALL fields during entry to No to prevent changes made to prices. If you
set it to Yes, you can override the prices already defined.
Select As Invoice.
[Img-69]
Once the above configuration is enabled in F12: Configure, you will now be allowed to modify the Price
Levels for the selected Party Ledger during Invoicing.
Note: Tal l y.ERP 9 provi de s you fl e xi bil ty to se le ct ite ms wi th and wi thout the Pri ce Li st
i n the s ame invoi ce . For e xampl e , for the i te m w hich had the Pri ce Li st de fi ne d,
Tall y.ERP 9 took the de tai l s automati call y. Whe re as for the stock i te m w hi ch di d not
have a Pri ce Li st de fi ne d, Tall y.ERP 9 prompte d for the same .
Zero Valued entries are those entries where a voucher entry is made without any values, i.e., one of
the parameters (Qty or Rate) may not have a value but needs to updated in the records.
Example:
Zero-rated VAT or Exempt from Tax Account. You are permitted to make such an entry. The Exempt
Ledger account can be viewed for all Exempt Sales.
The items which are given as Free Samples.
Note: Zero Valued entries are allowed only in Sales and Purchase vouchers only and are not available in
Receipt, Payment vouchers and journal vouchers.
Free scheme
Rounding off of the billing quantity (for e.g., in Textile industries, Cloth measuring 150.50
mtrs is actually delivered but bill is made for 150 mtrs)
Recording of Actual Quanties and the Billed Quanties are essential to get the accurate stock values and
sale/purchase value i.e., the Books of Accounts should be updated with the Billed quantities
and Stocks has to be updated only with the Actual Quantities. Tally.ERP 9 allows you to record both
these in different fields i.e., Billed and Actual Quantity separately in the same invoice.
Note: The Actual Quantity update s stock and the Bil l ed Q uanti ty affe cts the accounts
and thus show s the correct posi ti on of both Accounts as w el l as Inve ntory.
Set the option Use different Actual and Billed Qty to Yes in F11:Features:F2:Inventory Features.
[Img-9]
Purchase or Sales vouchers with Actual and Billed quantity will appear as shown.
[Img-10]
In the screen shown above, there are two columns under Quantity:
Actual
Billed
Once when quantities are entered under Actual and Billed, stocks will be reduced to the extent of Actual
quantities only.
Example:
A company gives 2 items free as a sample to the customer, when 10 items are purchased. Then
under Actual qty column 10 numbers will be entered and under Billed quantity 8 numbers will be
entered. In the stock summary 10 numbers will be shown under Outwards.
Job Costing in Tally.ERP 9
Job costing is a form of specific order costing, which applies to a job undertaken according to customer
requirements and specifications. Tally.ERP 9 enables the tracking of cost and revenue information down
to the smallest detail. With a view to ascertaining the actual costs incurred for each job, each job is
assigned a job number or Job name. Job costing systems then accumulate costs separately for each
product or service, based on the jobs undertaken, for each product or service.
Some of the examples of Job Costing are Interior Decoratoration, Construction, Architecture, Printing
etc.,
To determine the true cost for each job broken down by locations
To determine the revenue and expenditure and therefore the profit associated with each job
It ascertains profitability i.e., Net Profit / Loss for a particular Job / Project.
Allows comparison of each element of cost, selling price and profit with other jobs in single
screen
Allows drill down till voucher level for any kind of alteration or reference
1. Set Maintain Cost Centres and Use Cost Centre for Job Costing to Yes.
[Img-1]
2. Set Maintain Multiple Godowns to Yes in F11: Company Features (F2: Inventory
Features).
3. Stock Items
Go to Gateway of Tally > Accounts Info > Cost Centres > Create
1. Enter the name of the Cost Centre in the Name field. Eg: Project 1.
3. Set the option Use for Job Costing to Yes. This cost centre will then be available in the
drop down for the Job Work Analysis report.
[Img-3]
Once Godown is allocated to the Job/Project, it is taken into account that all the materials issued or
received for that particular Job/Project and will reflect in the reports. It is always advised to create
separate godowns for each Job/Project.
1. In the Godown Creation screen, Allow Storage of Materials is automatically set to Yes.
Ex: Bangalore.
2. An additional field Set Job/Project Name for Job Costing is displayed. Press the
spacebar in the field and the list of Cost Centres for which Use for Job Costing was set to
yes is displayed in the List of Cost Centres sub-screen.
Note: Re fe r Cre ate a Location for more de tai ls on Cre ating Godow n. Whe n the
Godow n i s confi gure d for J ob Work cursor w i l l not move to Use for se cti on.
Create party accounts for our Customers under Sundry Debtors. For e.g. you can create a Ledger for a
Bangalore customer and one for a Chennai customer. Similarly create your Suppliers under Sundry
Creditors.
Create Sales Ledgers under Sales Accounts and Purchase Ledgers under Purchase Accounts. Ensure that
the field Cost Centres are applicable? is Yes for the Ledgers you want to include in Job Costing.
Create Income Ledgers such as Project Inspection Charges etc. under Direct Income. Expense ledgers
such as Transportation Charges, Project Site Rent, and so on can be created under Direct Expenses.
Staff Welfare, Telephone Charges etc. can be created under Indirect Expenses as required by your
project. Ensure that the field Cost Centres are applicable? is Yes for all the Ledger Accounts you want to
include in Job Costing.
Go to Gateway of Tally > Accounting Info or Inventory Info > Voucher Types > Alter > Stock
Journal > under ‘Name of Class’ give the name as ‘Transfer’:
[Img-5]
[Img-6]
The Stock Journal Voucher screen, which contains both Transfer and Consumption voucher class
is displayed as shown.
[Img-7]
4. Select the Party to be credited from the List of Ledger Accounts in Party’s A/c name.
5. Select the required Purchase Ledger from the List of Ledger Accounts.
On selecting the Item, an Item Allocations sub screen for the selected Item is displayed as shown.
[Img-8]
7. Select the Godown under the Godown field and specify the quantity to be allocated under
the Quantity field.
8. Enter the Quantity and Rate, and the amount is automatically displayed in the Amount field.
9. Select another Godown and follow the similar procedure for Item allocation.
Note : In the J ob Work An al ysis re port, purchase amount w il l be show n i n the inw ards
col umn.
[Img-9]
For Inter Project / Site Transfer, use Stock Journal with Transfer Class.
[Img-10]
[Img-11]
1. Select the Godown from the List of Godowns, to where Items are to be transferred.
3. Select the Godown from the List of Godowns, from where goods are transferred.
For consumption of material, use Stock journal voucher with Consumption Class.
Go to Gateway of Tally > Inventory info > press Alt+F7 > select Consumption under Class.
[Img-12]
[Img-13]
4. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
Note: Thi s Consumpti on Amount w il l be show n unde r ‘consumpti on’ col umn i n the Job
Work Anal ysi s Re port.
Other Transfers:
When materials are transferred from one godown to another (Godown tagged to the Job Costing)
without selecting the voucher class (Classes created for ‘Transfer’ and‘Consumption’), it will be taken
under ‘Other Transfers’ in the Job Work Analysis report.
[Img-14]
Go to Gateway of Tally > Accounts Info or Inventory Info > Voucher Types > Create
In the item master creation screen (Building), press F12: Configure (Stock Item Configuration) and
set Allow component list details ( Bill of Materials) to Yes.
[Img-16]
Now In the Item master creation screen, set Set Components List to Yes
[Img-17]
Then the Stock Item Multi Components (M BOM) screen will be displayed. In Name of BOM specify
the BOM Name
[Img-18]
Press Enter from Name of BOM to view Stock Item Components (BOM) screen. The
completed component list is displayed as shown
[Img-19]
Go to Gateway of Tally >Inventory Vouchers > press Alt+F7 > select ‘Manufacturing
Journal’ under Voucher Type.
[Img-20]
3. Select the Bank Account or Cash Account from where payment has to be made.
4. Select the Expense Ledger Account created and enter the amount to be debited.
5. The Cost Allocations sub-screen appears. If the payment has to be allocated to more than
one Cost Centre, select the Cost Centres and allocate the corresponding amount.
Similarly, the expenses related for a particular project could be accounted by tagging to the respective
Job/Projects.
2. Select As Voucher.
Note: You can cre ate an Item Invoi ce or an Account Invoi ce and al l ocate appropri ate
Cost Ce nters or J ob/ Proje ct and al so sale s can be create d - As Voucher or As Invoi ce
7. In the Cost Allocations sub screen, select the Cost Centre from the List of Cost Centres under
the field Name of Cost Centre and enter the amount to be allocated to that Cost Centre.
[Img-26]
Detailed view:
Press Alt+F1 in the Job Work Analysis report, to view a detailed report.
[Img-27]
Press F12 in the Job Work Analysis report, and set Show Percentage to Yes.
[Img-28]
[Img-29]
Here it will display Opening Value, Inward Value, Consumption, Other Transfers and Closing
Value.
[Img-31]
Press F12 and set Show goods inwards in detail, Show goods Consumption in detail and Show
goods outwards in detail to Yes.
[Img-32]
[Img-33]
Further drill down from Material Consumption Summary to Material Consumption Stock
Summary, would enable the user to view the Stock Group:
[Img-34]
This Report displays the material consumed for the Job/Project. Details of Opening value, Inward Value,
consumption, other transfers and Closing value is shown – Drill down:
Opening Value: Opening Balance of the items which are tagged to the Godowns (Job/Project) is
displayed here.
Inwards:
Purchase: The value of the materials which are purchased for the project is displayed here.
Manufacturing Journal: The value of the materials which are produced by passing
Manufacturing Journal voucher tagging to the appropriate godown, is displayed here under
Inwards.
Inter Project Transfer: The value of the transfer entry which is made by
using ‘Class’ created for ‘Stock Journal’ and tagging to the appropriate godown is displayed
here.
Consumption:
Cost of Sales: The Value of Cost of Sales will be displayed here. Cost of Sales is nothing
but Number of quantities (Sold) x Cost of Purchase. Sales which is made by usingItem
invoice will appear here.
Job Consumption: The value of the entries which are made using ‘Consumption Class’
create for Stock Journal is displayed here.
Outwards:
Manufacturing Journal: The value of the materials which are used\ consumed for a
Job/Project in the manufacturing journal voucher entry is displayed here.
Inter Project Transfer: The value of the transfer entry which is made by
using ‘Class’ created for ‘Stock Journal’ and tagging to the appropriate godown is
displayed here.
Closing Value:
Drill down from the above report, will display the Stock items used for Job/Project
[Img-35]
[Img-36]
It displays the report godown wise - Inwards, Outwards and Closing Balance.
The button Auto Column is available to view all the Job/Projects material consumption report in one
sheet. Press Alt+N.
[Img-37]
[Img-38]
[Img-39]
[Img-40]
The button Alter Column is also available in the report to view the other job or Project. Press Alt+A
[Img-41]
[Img-42]
F4 button:
Click this button to select the other Job/Project from the list.
Profit button is available in the Material Consumption Stock Summary report, to view the Gross
Profit with Percentage for a particular Job/Project.
[Img-43]
The Job Work Analysis report supports details of Multiple Jobs in a single report. All these details are
viewed as different columns with the help of New Column button. Alt+N
[Img-44]
[Img-45]
The button Auto Column is available in the report to view the period for a particular period that can be
selected from the list. Refer Modify Reports for adding, deleting and altering columns. Press Alt+C.
[Img-46]
Viewing any other Project/Job from the existing project Job Work Analysis report:
The button Alter Column is also available in the report to view the other job or Project Alt+A
[Img-48]
[Img-49]
Press F4 button, to select the other Job/Project from the list.
[Img-50]
It allows the user to drill down from Job Work Analysis report to voucher entry, to view a break up of
Job/Project.
Job Order Processing' in Tally.ERP 9
When the principal company intents to manufacture or process goods, raises a Job Work Out Order on
Job Worker to process the order. The Job Work Out order contains the Ordered Item, Quantity, Rate
and the Amount. It allows to define the BoM for the ordered item. It also contains the despatch details,
the process instruction with regard to duration and nature of process along with the Job Work Out Order
Number.
Tally.ERP 9 allows the principal company to have track of raw materials sent and finished/processed
materials received. It provides reports on Orders/Components Outstandings, Material
Movements, Stock availability with Job Workers, Stock ageing analysis and Analysis on Job Work such
as Issue and Receipt Variance.
When the job worker receives an order from the principal company to manufacture or process goods,
raises a Job Work In Order on the Job Order received. The Job Work In order contains the Ordered Item,
Quantity, Rate and the Amount. It allows to define the BoM for the ordered item. It also contains the
despatch details, the process instruction with regard to duration and nature of process along with the
Job Work In Order Number.
Tally.ERP 9 allows the job worker have track of raw materials received and finished/processed materials
sent. It provides reports on Orders/Components Oustandings, Material Movements, Stock availability
with Job Workers, Stock ageing analysis and Analysis on Job Work such as Issue and Receipt Variance.
Go to Gateway of Tally > Order Vouchers > press Alt + J or click on J: Job Work Out Order.
[Img-5]
Select the Supplier’s (Job Worker) name from the List of Ledger Accounts. Use Alt + C to create a
new account.
[Img-6]
Order No
Enter the Job Work Out Order Number under Order No column.
Name of the Item
Select the Stock Item for which order is placed, from the List of Stock Items. The Item
Allocations sub-screen is displayed. Enter the details as shown.
Track Components
Due On
Enter the due date for receipt of the items. This monitors outstanding receipts.
If orders are split for different dates, then specify the due date for the first lot to be received, after
selecting the quantity, rate and amount; specify the due date for the second lot and so on. After
specifying the due dates for all the lots, press Enter in the Due on field to return to the Voucher
Creation screen.
Godown
Enter the ordered quantity of the item and its rate. The amount will be calculated automatically.
In case Track Component is set to Yes, the Component Allocation screen is displayed when
the Quantity is entered, as shown:
[Img-7]
Note: The C om ponents All ocati on di spl ays the l ist of compone nts spe ci fi e d i n
the O rdered Item master.
Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
Or
Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Job Work
Out Orders Book
To delete a Job Work Out Order, press Alt + D in the Job Work Out Order alteration screen.
This voucher allows the Job Worker to raise receipt of Job Order from the Principal
Company.
Go to Gateway of Tally > Order Vouchers > press Alt + W or click on W: Job Work In Order.
[Img-5]
Select the Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt +
C to create a new account.
The Party Details screen is displayed. Provide the details as shown in Job Work Out Order.
Order No
Select the Stock Item for which order is received, from the List of Stock Items. The Item
Allocations sub-screen is displayed. Enter the details as shown.
Due On
Enter the due date for delivery of the items. This monitors outstanding deliverables.
If orders are split for different dates, then specify the due date for the first lot to be
delivered, after selecting the quantity, rate and amount; specify the due date for the second
lot and so on. After specifying the due dates for all the lots, press Enter in the Due on field to
return to the Voucher Creation screen.
Godown
Note: The Godown selected should not be enabled with options Our Stock with Third
Party and Third Party Stock with us in Godown masters.
In case Track Component is set to Yes, the Component Allocation screen is displayed when
the Quantity is entered, as shown:
[Img-6]
Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
Or
Go to Gateway of Tally > Display > Job Work In Reports > Job Work Registers > Job Work In
Orders Book
To delete a Job Work In Order, press Alt + D in the Job Work In Order alteration screen.
[Img-7]
Or
In the Stock Summary screen, you can add a new column using Alt + C.
[Img-9]
Sales Order Reports can be accessed through Alt + F7 or Alt + C of the Stock Summary.
Go to Gateway of Tally > Stock Summary > Press F9 > select Purchase or Sales Order
[Img-10]
Note: Inventory Reports and Accounti ng Reports can al so be acce sse d
through ALL othe r re ports by pre ssi ng F9 or F10 (Accounti ng/ Inventory Reports) .
Job Order Processing' in Tally.ERP 9
When the principal company intents to manufacture or process goods, raises a Job Work Out Order on
Job Worker to process the order. The Job Work Out order contains the Ordered Item, Quantity, Rate
and the Amount. It allows to define the BoM for the ordered item. It also contains the despatch details,
the process instruction with regard to duration and nature of process along with the Job Work Out Order
Number.
Tally.ERP 9 allows the principal company to have track of raw materials sent and finished/processed
materials received. It provides reports on Orders/Components Outstandings, Material
Movements, Stock availability with Job Workers, Stock ageing analysis and Analysis on Job Work such
as Issue and Receipt Variance.
When the job worker receives an order from the principal company to manufacture or process goods,
raises a Job Work In Order on the Job Order received. The Job Work In order contains the Ordered Item,
Quantity, Rate and the Amount. It allows to define the BoM for the ordered item. It also contains the
despatch details, the process instruction with regard to duration and nature of process along with the
Job Work In Order Number.
Tally.ERP 9 allows the job worker have track of raw materials received and finished/processed materials
sent. It provides reports on Orders/Components Oustandings, Material Movements, Stock availability
with Job Workers, Stock ageing analysis and Analysis on Job Work such as Issue and Receipt Variance.
Go to Gateway of Tally > Order Vouchers > press Alt + J or click on J: Job Work Out Order.
[Img-5]
Select the Supplier’s (Job Worker) name from the List of Ledger Accounts. Use Alt + C to create a
new account.
[Img-6]
Order No
Enter the Job Work Out Order Number under Order No column.
Name of the Item
Select the Stock Item for which order is placed, from the List of Stock Items. The Item
Allocations sub-screen is displayed. Enter the details as shown.
Track Components
Due On
Enter the due date for receipt of the items. This monitors outstanding receipts.
If orders are split for different dates, then specify the due date for the first lot to be received, after
selecting the quantity, rate and amount; specify the due date for the second lot and so on. After
specifying the due dates for all the lots, press Enter in the Due on field to return to the Voucher
Creation screen.
Godown
Enter the ordered quantity of the item and its rate. The amount will be calculated automatically.
In case Track Component is set to Yes, the Component Allocation screen is displayed when
the Quantity is entered, as shown:
[Img-7]
Note: The C om ponents All ocati on di spl ays the l ist of compone nts spe ci fi e d i n
the O rdered Item master.
Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
Or
Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Job Work
Out Orders Book
To delete a Job Work Out Order, press Alt + D in the Job Work Out Order alteration screen.
This voucher allows the Job Worker to raise receipt of Job Order from the Principal
Company.
Go to Gateway of Tally > Order Vouchers > press Alt + W or click on W: Job Work In Order.
[Img-5]
Select the Customer's (Principal Company) name from the List of Ledger Accounts. Use Alt +
C to create a new account.
The Party Details screen is displayed. Provide the details as shown in Job Work Out Order.
Order No
Select the Stock Item for which order is received, from the List of Stock Items. The Item
Allocations sub-screen is displayed. Enter the details as shown.
Due On
Enter the due date for delivery of the items. This monitors outstanding deliverables.
If orders are split for different dates, then specify the due date for the first lot to be
delivered, after selecting the quantity, rate and amount; specify the due date for the second
lot and so on. After specifying the due dates for all the lots, press Enter in the Due on field to
return to the Voucher Creation screen.
Godown
Note: The Godown selected should not be enabled with options Our Stock with Third
Party and Third Party Stock with us in Godown masters.
In case Track Component is set to Yes, the Component Allocation screen is displayed when
the Quantity is entered, as shown:
[Img-6]
Accept to Save.
Narration
This field is optional. Enter the required particulars concerning the order.
Or
Go to Gateway of Tally > Display > Job Work In Reports > Job Work Registers > Job Work In
Orders Book
To delete a Job Work In Order, press Alt + D in the Job Work In Order alteration screen.
[Img-7]
Or
In the Stock Summary screen, you can add a new column using Alt + C.
[Img-9]
Sales Order Reports can be accessed through Alt + F7 or Alt + C of the Stock Summary.
Go to Gateway of Tally > Stock Summary > Press F9 > select Purchase or Sales Order
[Img-10]
Note: Inventory Reports and Accounti ng Reports can al so be acce sse d
through ALL othe r re ports by pre ssi ng F9 or F10 (Accounti ng/ Inventory Reports) .
Purchase Raw material:
Go to Gateway of Tally > Inventory Info. > Voucher Types > Create
[Img-73]
Name
Type of Voucher
For more details refer Creating a Voucher Type with Advanced Configuration
Set this option to Yes. Once this option is set to Yes, you will be able to record Manufacturing Journal.
You can also alter the existing Stock Journal Voucher type and set Use as a Manufacturing
Journal to Yes.
Go to Gateway of Tally > Inventory Info > Voucher type > Alter > Stock Journal
Note : O nce the Stock J ournal is al te re d to e nable the opti on Use as a Manuf acturi ng
Journal , all stock journal vouche rs wi ll be tre ate d as Manuf acturi ng journal s.
Transfer Journal Voucher' in Tally.ERP 9
Tally.ERP 9 allows you to transfer materials from one Godown to another. The transfer of materials is
done using the Transfer Journal Voucher.
Go to Gateway of Tally > Inventory vouchers > Alt+F7 for Stock Journal and select the class.
[Img-27]
While printing Stock Transfer Voucher, set the options Destination Godown on Top of Voucher and Print
Godown Address to Yes.
Enabling the option Print Godown Address will display the godown address as mentioned
in the Godown Creation/Alteration screen
[Img-31]
In case, where you don't have By-Product/Co-product/scrap details, then you can configure the
Note : When the opti on Ski p Co- Product/ By - Product/ Scrap Stock Ite m i s band the user i s
recordi ng a Manufacturi ng J ournal f or a stock ite m f or whi ch the BO M i s created by capturi ng
the detai l s of By- Product/ Co - Product/ Scrap ; then Tal l y.ERP 9 wil l i gnore the confi gurati on
and wi l l capture the detai l s of By - Product/ Co - Product/ Scrap. It wi ll al so al l ow to
m odi f y the detai l s i n By - Product/ C o - Product/ Scrap secti on.
For more information on creating Manufacturing Voucher type refer Creating Manufacturing Journal.
[Img-25]
Name of Product
Select the product which needs to be manufactured from the List of Items. The Item selected in Name of
Item field will be the primary Item which will be manufactured using different components.
BOM Name
Select the Bill of Material if you want the components utilised to manufacture the finished goods to be
displayed automatically.
Note: If BO M i s se le cte d the Components use d for the manufacture of fi nishe d goods &
the By-Products/C o -Prod ucts or Scrap produce d du ri ng manufacturi ng w il l be
de faul te d.
For more details on creating BOM & recording Manufacturing Journal using BOM refer the topic -
Creating Bill of Materials for a Stock Item
Godown
Select the godown where you would like to place the produced goods.
Quantity
% of Cost Allocation
This field displays the Percentage of Cost of Allocation to the Primary Item manufactured.
Note: In a manufacturing proce ss i f the re are no by - Products/ co - products or scrap
produce d the n the % of Cost of All ocati on to Pri mary Item wi ll 100%.
If the item to be manufactured in batches then enter the Batch Name, Manufacturing Date and Expiry Date.
Components (Consumption)
The list of Sub-Component items which will be used to produce the finished goods, need to be selected
here.
1. Name of Item: In this field select the components used for the manufacture of finished
goods.
2. Godown: In this field select the Godown from where the components are consumed for
production.
3. Quantity: In this field mention the Quantity of Raw materials required to manufacture the
finished goods.
4. Rate: In this field mention the rate (purchase cost) of the raw materials used in the
manufacture of finished goods
3. % of Cost Allocation: In this field specify the % of cost of allocation to be made towards
the By-product/Co-product/Scrap produced
Cost of Components
This field displays the total cost of the components (raw materials) used in the manufacture of finished
goods.
Enter the additional cost incurred for manufacturing the finished goods, if any.
Effective Cost
The Effective cost is total of Cost of Components (Consumption) + Additional Cost incurred to
manufacture the finished goods & Co-Product/By-product or Scrap
In the above example: 20,00,000 + 20,000 = 20,20,000 is incurred manufacture Item B (Primary
Item), By-Product 1 & Scrap
The cost allocated to manufacture the Primary Item will be displayed in this field.
In some manufacturing processes, only finished goods will be produced without any By-product/Co-
product/scrap. In those cases, users may not need the provision to move to By-Product/Co-
product/scrap section. You can configure the movement of cursor to By-Product/Co-product/scrap
section.
Enabling TDS
To get started, you have to enable the Tax Deducted at Source (TDS) module in
Tally.ERP 9 and enter your company's registration details.
To enable TDS
2. Set Enable Tax Deducted at Source (TDS) to Yes in the Company Operations
Alteration screen.
o Press Enter.
10. Enable the option Ignore IT Exemption Limit for TDS Deduction?, if required.
11. Enable the option Activate TDS for stock items?, if required.
Configuring TDS
You can make many other configurations in your Company related to TDS, such as
configuration for displaying collector types, enabling surcharge details, and showing
alternate contact details.
8. Press Enter.
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > TDS Nature of
Pymts > Create.
15. Enable the option Provide PAN Details to enter PAN details of the party.
3. Select Duties and Taxes as the group name in the Under field.
6. Press Enter.
1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create.
3. Select a stock group from the List of Stock Groups in the Under field.
7. Press Enter.
3. Press Ctrl + A to save the details. A new option Use Advanced TDS Entries will
be available.
3. Press Ctrl + A to save the details. A new option Use Advanced TDS Entries will
be available.
6. Select the required TDS nature of goods from the List of TDS Nature of Pymts.
3. Press Ctrl + A to save the details. A new option Use Advanced TDS Entries will
be available.
6. Select the required TDS nature of payment from the List of TDS Nature of
Pymts.
Scenario: On 30-4-2015, ABC Company paid MAR Tech Park ₹ 5,00,000 as rent.
5. Credit MAR Tech Park. The amount after TDS deduction will appear in
the Amount field automatically.
6. Press Enter.
8. Press Enter.
9. Credit the TDS tax ledger. The TDS amount will automatically filled in
the Amount field.
6. Select the TDS tax ledger. The TDS amount will automatically filled in
the Amount field.
7. Press Enter.
9. Press Enter.
5. Select the TDS tax ledger. The TDS amount is automatically filled.
6. Press Enter.
8. Press Enter.
The Assessing Officer shall issue a certificate for deduction of Tax at Lower rate than
the relevant rate specified under the section, Where the assessing officer is satisfied
that the total income of the recipient (Assessee) justifies the deduction of income tax
at any lower rates than the rate specified under the sections specified under the act
and has received an application in Form 13 from the assessee under sub-section (1)
of section 197.
The certificate granted shall be valid for the assessment year specified and is valid
only for the person named therein.
Scenario: On 16-05-2015, ABC Company received a bill from ACE Computers for
₹80,000 towards commission charges. ACE Computers has a certificate for deduction
of Income tax at Lower rate @ 5%, on Commission.
5. Credit ACE Computers. The amount after TDS deduction will appear in
the Amount field automatically.
6. Press Enter.
8. Press Enter.
9. Credit the TDS tax ledger. The TDS amount will automatically filled in
the Amount field.
The certificate granted shall be valid for the assessment year specified and is valid only for
the person named therein.
Scenario: On 25-5-21-015, ABC Company received a bill from Gokul Co-operative Building
Society for Rs. 10,00,000 towards Rent on Building and Furniture. Gokul Co-operative
Building Society has a certificate for non-deduction (zero rate) of Income tax on Rent.
6. Press Enter.
8. Press Enter.
In the text file generated as per File Validation Utility (FVU) version 5.6, the letter B appears
as remarks for transactions recorded at lower or zero deduction for TDS nature for all
the Nature of Payments under section 194J.
Scenario 1: On 05-05-2015, ABC Company paid TDS deducted in the month of April
2015 to the government directly.
10. Select either bank or cash ledger in the Cash/Bank field. The payment voucher
will be automatically filled with the relevant values.
Scenario 2: On 05-05-2015, XYZ Company paid the TDS deducted to the government
on behalf of ABC Company.
Scenario: On 1-4-2015, ABC Company paid MAR Tech Park ₹ 5,00,000 as rent
(accounting only expenses). On 14-4-2015, deducting applicable tax.
7. Press Enter.
6. Press Enter.
11. Enter Narration, if required. The Journal voucher appears as shown below:
Section 194C of Income Tax Act is amended to include TDS deduction of 1 % for
individuals and Hindu Undivided Families owning more than 10 goods carriage, and
at the rate of 2% in case of other payees. For others not owning more than 10 goods
carriage at any time during the previous financial year, and who has furnished a
declaration to this effect along with his PAN, no TDS is applicable.
2. Select Expenses and TDS duty ledgers. Once you select Duty ledger, party
details will appear with Party name, PAN number and deductee type.
Note: A party which is selected in Supplementary Details screen details will appear
after selecting TDS duty ledger. In Supplementary Details screen instead of
selecting the party from the list, party name can be entered manually if
required. In such case after selecting duty ledger, mention PAN number of party
and deductee type.
This is applicable for Resident and the due date for Government entities is July 31st,
October 31st, January 31st, and May 15th; for non-government entities the due
dates for filing returns are July 15th, October 15th, January 15th, and May 15th.
The Form 26Q report in Tally.ERP 9 assists you in generating accurate the returns to
be filed.
The Form 26Q report can be filed with accurate information available in this report.
It has three main sections:
● Statistics of Vouchers
● Deduction Details
● Payment Details
Total Number of Transactions: Drill-down on this item to view the Statistics report
comprising of voucher types with the corresponding voucher count. The total count of
vouchers displayed for the Total Number of Transactions row is categorized
Included Transactions: Displays all vouchers that have the requisite information in their
corresponding masters and transactions to comply with the requirements for filing the
returns. These vouchers will be a part of TDS forms as applicable.
Excluded Transactions: Displays the count of all vouchers which are not a part of returns. As TDS
details are not provided in these transactions, there will be no implications on forms and annexures.
Uncertain Transactions: Displays the count of all vouchers with insufficient information.
These vouchers contain TDS related information and are not included in the count
of Included Transactions and Excluded Transactions.
● Country, state and dealer type are not defined for party ledger.
The statistics report displays the count of each voucher type used for recording transactions
under Total Number of Transactions, Included Transactions, Excluded
Transactions, and Uncertain Transactions.
1. Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Form 26Q or
Form 27Q.
4. Select any voucher type and press Enter to view the Voucher Monthly Register.
The assessable value, tax deductible, and the tax deducted for transactions grouped in the
above categories are displayed here.
1. Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Form
26Q or Form 27Q.
2. Select the required deduction under Deduction Details, and press Enter.
1. Click F12:Configure.
The Deduction Details screen with PAN numbers appears as shown below:
Payments made to party, petty expenses, or any statutory payments other than that
of TDS are not displayed here.
The Payment Voucher report for other payments appears as shown below:
A brief explanation of each field in the exported voucher report is given below:
Note: As per NSDL department file validation tool, challan number and challan date
are not mandatory. In case of online TDS duty payment, user can provide the
challan number and challan date or leave the fields blank, and validate E-TDS file
successfully.
Column
Description
Names
Displays
the From and To dates
entered at the Statutory
E-TDS
Payment Details screen. If
Quarter
TDS duty payment is
Period
recorded manually, the
quarterly period has to be
entered manually here.
● Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > TDS
Outstandings.
● Click F12:Configure
● Press Ctrl+A.
● Click F6:Party-wise
The TDS Nature of Payment Outstandings report for the selected nature of
payment appears as shown below:
3. Click F12: Configure to change the display of report in terms of the following
options:
It is a computerized Cash Register which adds the sales total, computes the State sales tax or VAT,
calculates the change from the money tendered and automatically adjusts the store’s inventory to debit
the amount of inventory sold.
More:
Offers a flexible and simple way of querying your inventory and sales information
Helps you to track the movement of items and how much you are spending on them
Tracks and records the date and time of every sale made at the store
Go to Gateway of Tally > Accounts Info > Voucher Type > Create
Tab down to Name of Class field and specify the name of the Voucher Class
The payments against POS Invoices are generally made by way of Cash, Gift Vouchers, Cheques/Drafts
or through Credit/Debit Cards. To account for receipt of payments from customers by different modes,
set the required option to Yes and select the required ledger in the respective fields.
1. Set Yes in Gift Vouchers field to enable the option during POS Invoice Entry and select the Gift
Vouchers under Ledger Name field (if does not exist, create using Alt+C. The Gift Vouchers
ledger should be created under Sundry Debtors group).
2. Set Yes in Credit/Debit Card Payment field to enable the option during POS Invoice Entry and
select the required Bank Ledger under Ledger Name field
3. Set Yes in Cheque/DD field to enable the option during POS Invoice Entry and select the
required Bank Ledger under Ledger Name field
4. Set Yes in Cash field to enable the option during POS Invoice Entry and select the required Cash
Account under Ledger Name field
Note:
• For Gift Vouchers, the ledgers should be created under Sundry Debtors Group
• For Credit/Debit Cards, the respective Bank Ledger should be created under Bank account or Bank
OD/OCC
• For Payment through Cheque/DD, the respective Bank Ledger should be created under the group
Bank Accounts or Bank OD/OCC
For more details on Voucher Class, please refer Sales Voucher class.
The other entries for each item in Invoice are similar to default Sales Voucher class creation.
Go to Gateway of Tally > Accounts Info > Voucher Type > Create
Name: Enter the name of the Voucher type (for e.g.: POS Invoice).
Type of Voucher: Select the type of Voucher as Sales from the predefined Voucher Types.
Abbreviation: By default, Sales text will appear in the abbreviation field. However, you can enter the
abbreviation as per your requirements
Used for POS Invoicing?: On selecting the Sales voucher type from the list, Used for POS Invoicing?
Option appears, set this option to Yes
Print Message 1 and Print Message 2: These two additional fields for messages appear on enabling the
above POS feature, which can used for custom messages viz., *Thank You* or *Visit Again* and so on
as per your requirements. The same will be printed at the bottom of the POS invoice.
Default Print Title: You can specify the printing title of the POS Invoice and the same will be printed
in the Invoice.
Note:
1. Once Use POS for Invoicing option is set to Yes in voucher type, you will not be entitled to set this
field to No, if you have passed any POS Invoice.
2. To know about advanced configurations refer detailed information on Use Advance Configuration
usage.
Creating a POS Invoice
To enter a simple transaction using a POS Invoice with single payment mode:
1. Select the POS Invoice as the Voucher type from the list of Voucher types.
3. Select the Item using the Bar code reader to scan the bar code or select the Item from the list.
4. The Rates of the Item is picked up from Set Standard Rates screen (Stock Item Creation screen)
or from the Price List screen.
6. By default for the first time, the POS Invoice screen will appear in Single Mode Payment.
The screen will appear as below with the Cash and Cash tendered fields:
7. Accept to save.
2. Skip Qty field during POS Invoicing (faster entry): By default, the same will be set to Yes so
that while passing the Invoice, the cursor will skip the Quantity field. The user may set this
option to No, to specify the required number of quantity.
3. Allow modification of Rate field during POS Invoicing: The rates are automatically picked as
per the Standard rates defined in the Stock Item master or from the Price List. However, you
can change the rate during entry, by setting this option to Yes.
For more details on printing POS Invoice, please refer Printing POS Invoice.
More :
1. Select the POS Invoice as the Voucher type from the list of Voucher types.
2. Select Multi Mode Pymt option from the Button Bar or press Ctrl+P.
4. Select the Item using the Bar code reader to scan the bar code or select the Item from the list.
5. The Rates of the Item is picked up from Set Standard Rates screen (Stock Item master) or from
the Price List screen.
For more details on printing POS Invoice, please refer Printing POS Invoice.
Note:
• Though Maintain Multiple Godown feature is set to Yes in F11: Inventory Features, you can select
only one Godown, while passing a POS Invoice.
• Single Mode/ Multi Mode Pymt: You can toggle between single and multi mode payments by
clicking on the Single Mode Pymt button. In Multi Mode the customer can choose to make his
payment by Credit/Debit cards, Gift Vouchers, Cheque or Cash and have all details available on his
invoice. In Single Mode only Cash field will be available in the Invoice.
• If Use Multiple Price level for Invoicing is enabled for the Item then the rates of the Item is picked up
from the price levels. Else, you can set the price of the Item in the Stock Item creation screen using the
Set Standard Rates to Yes. Enter the standard selling price of the Item (Press F12: Configure button
in the Stock Item creation screen and set Allow Std. Rates for Stock Items to Yes).
• If you have set the rate for an Item both in Price Levels and in Set Standard Rates (in Stock Item
Creation screen), the rate is picked up from the Price List and not from the Set Standard Rates in
Stock Item creation screen.
POS Invoicing with Advance Configurations
Set Maintain Batch-wise Details and Set Expiry Dates for Batches to Yes in the F11:
Inventory Features screen.
Set Use different Actual & Billed Qty. to Yes in F11: Inventory Features screen to specify the
free items.
Set Separate Discount column on Invoices to Yes to specify the discount on any items while
making a POS sales invoice.
Create Stock Items. Place the cursor in the alias field and use the Bar Code Reader to scan and
read the bar code of the Item. This code will automatically get displayed in the alias field. Select
the Unit of measure and Set Maintain in Batches to Yes. On setting this option you will get
Track Date of Mfg and Use expiry dates set these two fields to Yes.
Set Standard Rates to Yes and enter the standard selling price of the Item (Press F12: Configure
button in the Stock Item creation screen and Set Allow Std. Rates for Stock Items to Yes). If you
have specified the rates in the price level then you can skip this field.
Set Use Security Control to Yes in Company Creation/Alteration screen and create the user login
name using the security feature in Tally.ERP 9. The user who logs in to Tally.ERP 9 with the
name of the user and password can print the POS Invoice with the user name.
More :
1. Select the POS Invoice as the Voucher type from the list of Voucher types.
3. Select Multi Mode Pymt option from the Button Bar or press Ctrl+P
5. Select the Item select the Item from the list or using the Bar code scanner or
6. The Rates of the Item is picked up from Standard Rates (Stock Item Creation screen) or from
the Price List screen.
7. The Item will be allocated to the Sales Ledger as defined and Tax will also get calculated
automatically.
Cash Tendered Field: When the payment is made by way of cash and once the user specifies the Cash
tendered value, the balance will be calculated automatically.
In the above example: the Cash tendered by the buyer is Rs. 500 and payable amount was Rs. 360 and
hence the balance to be paid back is Rs. 140.
For more details on printing POS Invoice, please refer Printing POS Invoice.
2. Select Godown, Party A/c Name, Sales Ledger and VAT/Tax Class (if applicable) from the list.
3. Select the Item from the list or use the scanner to read the bar code of the item. On selecting the
Item from the list or by scanning, you will be prompted to enter the Batch Name in the New
Number screen. Enter the Batch Name of the Item.
4. Tally.ERP 9 prompts you to enter the Manufacturing Date and the Expiry Date as below:
5. The rate of the Item entered in the Set Standard Rates (in Stock Item creation master) or in
Price List screen will get prefilled in the Rate field.
Now, you can print POS Invoice with Batch details. All other configurations are similar to creating a
POS Invoice. For more information refer Creating a POS Invoice.
Example:
If you buy 2 shirts and get 1 shirt free with it, while entering POS Invoice, enter 3 shirts in the Actual
Column and 2 shirts in the Billed Column. While printing the Invoice, the difference in the actual and
billed quantity will be shown as Free in the Rate Column.
In the example below, for 100 nos. of purchase, 10 quantity is given free.
7. Select Gift voucher from the list OR Select Credit/Debit Card Payment and the card number
and enter the amount OR Select the Cheque and enter the amount, Bank Name and Cheque
Number.
8. Select the Cash account and enter the cash paid by the customer at the counter. The balance
amount, which has to be paid to the customer, will be calculated automatically.
Single Mode/ Multi Mode Pymt: You can toggle between single and multi mode payments by clicking
on the Single Mode Pymt button. In Multi Mode the customer can choose to make his payment by
Credit/Debit cards, Gift Vouchers, Cheque or Cash and have all details available on his invoice. In
Single Mode only the Cash transaction fields will be printed on the invoice.
Note:
• If Use Multiple Price level for Invoicing is enabled for the Item then the rates of the Item is picked up
from the price levels. Else, you can set the price of the Item in the Stock Item creation screen using the
Set Standard Rates to Yes. Enter the standard selling price of the Item (Press F12: Configure button in
the Stock Item creation screen and set Allow Std. Rates for Stock Items to Yes).
• If you have set the rate for an Item both in Price Levels and in Set Standard Rates (in Stock Item
Creation screen), the rate is picked up from the Price List and not from the Set Standard Rates in
Stock Item creation screen.
10. Set Use Security Control to Yes in Company Creation/Alteration screen and create the user login
name using the security feature in Tally.ERP 9. The user who logs in to Tally.ERP 9 with the
name of the user and password can print the POS Invoice with the user name.
Creating a POS Invoice with different Actual &
Billed Qty
Go to Gateway of Tally > Accounting Vouchers > Select F8: Sales
2. Select Godown, Party A/c Name, Sales Ledger and VAT/Tax Class (if applicable) from the list.
3. Select the Item from the list or use the scanner to read the bar code of the item. On selecting the
Item from the list or by scanning, you will be prompted to enter the Actual Qty and Billed Qty.
4. Select Gift voucher from the list OR Select Credit/Debit Card Payment and the card number
and enter the amount OR Select the Cheque and enter the amount, Bank Name and Cheque
Number.
5. Select the Cash account and enter the cash paid by the customer at the counter. The balance
amount, which has to be paid to the customer, will be calculated automatically.
4. Print Additional Description(s) for Item Name is set to No by default, set this option to Yes, if
you wish to print additional description for each item in the POS bill.
5. Set Print Batch Details to Yes to print the Manufacturing Date and Expiry Date.
8. Print whole Card Number is set to No by default, which will print only last 4 digit of card
number. Set this option to Yes to print the 16 digit card number on the POS Invoice.
9. Set Print VAT Analysis of Item to Yes to print the VAT Analysis on POS Invoice.
10. Set Print Narration to Yes to print the Narration on POS Invoice.
11. Set Print Default Name & Address of Party to Yes to print the Narration on POS Invoice.
Accept the Print screen to view the POS Invoice in preview mode (Only for Neat Mode format).
The Invoice displays the company name and address, TIN, CST, Bill number, time, date, user name,
serial number, description, quantity, rate, amount, Batch number, Expiry date, Manufacturing date, Free
Item (if any), discount (if any) Vat analysis, payment mode details, balance to be paid to the customer
and the print message.
Go to Gateway of Tally > Display > Accounts Books > POS Register
Note: POS Register option will appear, only if the option Use for POS Invoicing is activated in
Voucher Type and at least one entry is made.
Press ALT+F1 or click on F1: Detailed button to view the POS Invoice in detailed format with all the
tax details.
F5: Columnar: This button allows you to select different columns for the report. For additional information refer to
Columnar Sales Register.
F6: Extract: Provides you with a break down of the POS Invoice vouchers and groups them to provide totals for each group
and ledger used in all POS Invoice for that particular date.
Click on the Print button or press ALT+P to view the POS Register in print preview mode. Press
ALT+Z to zoom the print preview screen.
It is a good practice for a business to monitor the credit limits of customers and suppliers. This helps
in managing the receivables and payables of a business in a better way. Credit limit is normally set based on
the credibility, volume of transactions, capacity of repayment etc. of the customer and supplier. To ensure
better credit management, Tally.ERP 9 provides the Credit Limit option to set the maximum amount of
credit that can be allowed to a customer or a supplier. Using this feature, business owners can ensure that no
invoice will be generated beyond the set credit limit unless the user has the right to modify the same.
Setting up Credit Limit for the party ledgers in Tally.ERP 9 is very simple and effortless. All it takes
is enabling the option and setting the limit on the party ledger creation or alteration screen.
To demonstrate how Credit Limit effects the transaction, let’s try to pass a Sales Invoice using a
ledger called ‘Modern Timbers’ (Sundry Debtors) for an amount of more than `1,00,000 which is the
specified credit limit for this ledger. Whenever the invoice is raised beyond this limit, Tally.ERP 9 will
display a prompt message saying ’Credit Limit of the selected party exceeded’ as shown:
Hence, with Tally.ERP 9, you can easily set credit limits for your party ledgers
and take control of your business’s receivables and payables. This in turn reduces risks
and improves collection for your business.
8. Press Enter.
14. Enable the option Provide PAN Details to enter PAN details of the party.
● PANAPPLIED
● PANINVALID
● PANNOTAVBL
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > TCS Nature of
Goods > Create.
In the text file generated as per File Validation Utility (FVU) version 5.6, the
letter C appears as remarks when transactions are recorded for all TCS natures
when the party PAN is entered as:
● PANAPPLIED
● PANINVALID
● PANNOTAVBL
3. Press Ctrl + A to save the details. A new option Use Advanced TCS Entries will
be available.
3. Press Ctrl + A to save the details. A new option Use Advanced TCS Entries will
be available.
6. Select the required TCS nature of goods from the List of TCS Nature of Goods.
3. Press Ctrl + A to save the details. A new option Use Advanced TCS Entries will
be available.
6. Select the required TCS nature of goods from the List of TCS Nature of Goods.
3. Select Duties and Taxes as the group name in the Under field.
6. Press Enter.
1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create.
3. Select a stock group from the List of Stock Groups in the Under field.
1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create.
3. Select a stock group from the List of Stock Groups in the Under field.
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Item Invoice
7. Enter 7500 in the Rate field. The Amount will be automatically calculated.
9. Press Enter.
10. Select the TCS ledger which is created under Duties and Taxes. The TCS
amount will get calculated automatically.
For example, MAR Teck Park is renting out their parking lot to Prakash
Enterprises for ₹ 2,00,000 for the month of May.
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Accounting
Invoice
6. Press Enter.
7. Select the TCS ledger which is created under Duties and Taxes. The TCS
amount will get calculated automatically.
8. Press Enter.
tax at any lower rate than the relevant rate specified in Section 206C (1), Buyer (or licensee or
lessee) will be allowed a lower rate of TCS on an application made by the buyer (or licensee or
The certificate granted shall be valid for the assessment year specified and is valid
only for the person named therein. In Tally.ERP 9, the user can record and compute
TCS on transactions, on which lower rate of collection is applicable.
For example, on 20-04-2015, Sujatha Timer Company sold 200MT of Timber at ₹ 7500/MT to
Tirumala Timber at a lower rate of 1.5% TCS.
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Item Invoice
3. Select Tirumala Timber in the Party's A/c Name field. To set lower rate of TCS
for this party click here.
7. Enter 7500 in the Rate field. The Amount will be automatically calculated.
9. Press Enter.
10. Select the TCS ledger which is created under Duties and Taxes. The TCS
amount will get calculated automatically.
For example, on 05-05-2015, Sujatha Timber Company paid TCS to the government
The Payment invoice will be automatically filled with the relevant details, as
shown below:
The Form 27EQ report in Tally.ERP 9 assists you in generating accurate the returns
to be filed.
The report can be drilled down to the voucher entry level to display complete
information of each transaction.
1. Go to Gateway of Tally > Display > Statutory Reports > TCS Reports > Form
27EQ
The Form 27 EQ report can be filed with accurate information available in this
report. It has three main sections:
1. Statistics of Vouchers
2. Collection Details
3. Payment Details
Included Transactions
● Entries accounting for TCS reversals and TCS deduction w.r.t escalations and
de-escalations
Excluded Transactions
These are transactions that do not carry the TCS details that are requisite to
generate Form 27EQ, and hence will be excluded while generating the form.
Transactions that will be considered as Excluded for generating Form 27EQ:
o Payment
o Contra
o Inventory Vouchers
o Order Vouchers
o Reversing Journal
o Payroll Vouchers
Uncertain Transactions
It displays the complete list of information gaps found in transactions. Until these
details are specified, either in masters or transactions, the transaction cannot be
considered for filing return. It consists of two broad categories,
All the transactions which are displayed here requires user’s intervention to provide
the appropriate details. Provision to completely exclude uncertain transactions is
also made available. Hence, any transaction which has information gaps but is not
required to be shown in the quarterly return, can be moved to Excluded
Transactions.
Collection Details
Details of all TCS entries are listed here under two heads:
Payment Details
This will contain the statistics of all TCS payments (deemed or actual) that exist in the
data till date. This will not contain any of the payment entries that are not related to
the current period. Any payment entries other that TCS payment entry will not
appear here.
All the TCS payment to department till date which is applicable for the report period,
will be listed as Included Transactions under this section.
● The Duty Type has not been set for the duty ledger
● The type of TCS Payment is not available. That is, whether the payment is
made towards Late Fee, Interest, Income Tax, Surcharge, Education Cess,
Secondary Education Cess, or Other Payments.
● Details of the bank where the payment has been made, is unavailable
● The payment amount has not been rounded off. As per rules, TCS payments
need to be rounded off figures.
Payment Summary
All payment vouchers that have been ‘included’ for generating returns, will be
captured in this section based on the category of payment.
Drill down to view the Payment Voucher report, where the date, voucher number,
duty type (education cess, secondary education cess, etc.) and the respective
amount, payment type (Interest, Late Fee, etc.) and the respective amount, and the
total amount paid.
Drill down further to view the Deduction Voucher report, the following details will be
displayed:
● Party Name
● PAN
● Rate
● Assessable Value
● Income Tax
● Surcharge
● Education Cess
● Sale of Motor Vehicle: Attracts 1% TCS if the value exceeds the threshold
limit of Rs. 10,00,000.
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > TCS Nature of
Goods > Create.
Similarly, create the nature of goods for Sale in Cash of Any Goods (Other
Than Bullion/Jewellery) and Providing of Any Services (Other Than Ch-XVII-
B) as shown below:
Leave &
ESI Attendance
Payroll
Overtime /
PF
Production
• Employee Details
• Employee Auto Numbering
• Photo
• Other statistics
• Formulae Builder
• Category-wise process
• Selective Employees
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Introduction ............................................................................................................................................................................... 1
i
Contents
ii
Introduction
The term Payroll refers to a series of accounting transactions involved in the process of paying
employees for the services rendered after taking all the statutory and non-statutory deductions
into account, in conformance with the terms of employment, company policy and the law of the
land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions.
An efficient payroll system facilitates an error-free, accurate and timely employee payment while
ensuring that the employment is well within the valid work permit.
Lesson 1: Configuring Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt:
Payroll in Tally.ERP 9 is easy to use and can handle all the functional, accounting and statutory
requirements of the payroll department.
2
□ It facilitates an accurate computation and deduction of ESI, EPF, Professional Tax, Gratuity
etc.
□ It helps in the generation of Statutory Forms & Challans for EPF & ESI, as prescribed.
□ It allows to drill-down to voucher level for any kind of alteration.
□ It facilitates computation of arrears pertaining to prior period(s).
□ It helps in tracking employee loan details.
The option More than ONE Payroll / Cost Category is set to Yes, when
separate cost categories are created to allocate Employee cost. In cases,
where only one cost category i.e., primary cost category is used to allocate
multiple cost centres, this option may be set to No.
Once the Payroll feature is activated in Tally.ERP 9, the following two new options get activated in
the F11: Statutory & Taxation Master
5
Configuring Payroll in Tally.ERP 9
□ Press Enter
6
Configuring Payroll in Tally.ERP 9
Provident Fund
Company Code: This field denotes the Provident Fund Code of the Com-
pany allotted by the Department.
Company Account Group Code: This field denotes the Provident Fund
Group Code of the Company allotted by the Department.
Company Security Code: This field denotes the Security Code of the Com-
pany allotted by the Department.
Employee State Insurance
Company Code: This field denotes the ESI Code of the Company allotted by
the Department.
ESI Branch Office: This field denotes the nearest ESI office under whose
jurisdiction, the company is situated.
Standard Working days (per month): This field denotes the consistent Pay
Period to be considered for ESI Calculation. If this field is left blank, the calcu-
lation is done based on the Calendar days in each month.
□ Press Enter to Accept the screen and go back to F11: Statutory & Taxation Features
screen
□ Press Ctrl+A to Accept the screen.
7
Lesson 2: Creation of Payroll Masters
Lesson Objectives
On completion of this lesson, you will have learnt how to:
7
Creation of Payroll Masters
The Payroll feature in Tally.ERP 9 requires minimal effort for accurate payroll processing. It takes
five easy steps to process payroll & generate Pay Slip in Tally.ERP 9.
Essentially, Payroll involves the calculation of amounts due for an employee on the following
basis:
□ Pay on Hourly wages
□ Pay on a fixed basis such as certain amount per week, per month and so on
□ Pay to sales persons on commission
□ Reimbursement of expenses such as travel expenses, either as paid by the employee or
based on per item rate
□ Pay on the basis of number of pieces produced/ manufactured/ sold
It is therefore essential to quantify the following payroll information for the purpose of computation
of payments to employees. For this purpose, the following Payroll masters have to be created in
Tally.ERP 9 in the manner as discussed:
□ Employee Masters
□ Payroll Masters
□ Pay Heads
8
Creation of Payroll Masters
□ Salary Details
Employee Setup
The Employee Master records employee information – department, date of joining, date of
leaving, ID number, designation, location, function, employee bank details, statutory details,
Passport and Visa details, and so on.
Tally.ERP 9 provides the flexibility to create the Employees and Group them under specific
Employee Group which in turn can be created under specific Employee Categories.
The following masters can be created in Tally.ERP 9 to successfully record the Employee Details:
□ Employee Category
□ Employee Groups
□ Employees
Employee Groups
Businesses with multiple departments, divisions, functions or activities may create the required
employee groups and classify individual employees under a specified group i.e., Production,
Sales, Marketing, Stores, Support or a particular group of employees such as managers, supervi-
sors, sub-staff and so on.
9
Creation of Payroll Masters
Similarly, create the other Employee Groups such as Administration and R&D.
Employee Master
After creating the Employee Groups, create individual Employee Masters, with or without
grouping them, under the Employee Group Master.
In Tally.ERP 9, you can record all the necessary information of the employees in the Employee
Masters. Tally.ERP 9 also allows you to enter the Statutory, Expat and Contract details of the
employees.
To display the options for entering the Statutory, Expat and Contract details enable these options
from the Company Configuration screen as explained below:
Go to Gateway of Tally > F12:Configure > Payroll Configuration
Set the following options:
□ Show Statutory Details to Yes
□ Show Passport & Visa Details to Yes
□ Show Contact Details to Yes
10
Creation of Payroll Masters
11
Creation of Payroll Masters
The option Date of Leaving and Reason for Leaving will be available only in
the Alteration mode.
Similarly, create the Employee Masters for other employees with their respective departments.
Payroll Masters
As discussed in the above section Pay components are computed based on the Payroll Units.
Therefore, create the following Payroll masters in Tally.ERP 9:
□ Payroll Units
□ Attendance / Production Types
Payroll Units
A payroll unit refers to a unit of measurement based on which pay heads are calculated. Payroll
units can be classified into two types viz., Simple Payroll Units and Compound Payroll Units.
Simple Payroll Units refer to individual units such as Day, Week, Month, Hours, Pcs, Box, Nos
etc., Whereas, Compound Payroll Units refer to Units which are combination of two simple units,
i.e., an Hour of 60 Minutes, Month of 26 days, Day of 8 Hrs.
Usually, the Pay components are computed based on a single or compound payroll units.
Sometimes an employee may be paid on the basis of a combination of two or more units. For
12
Creation of Payroll Masters
example, an employee is paid a regular salary and an hourly rate for the overtime hours. In this
case, the two likely units are Calendar Month and Hours. In Tally.ERP, you can create simple as
well as compound units.
By default, Tally.ERP 9 contains four preset Calculation Periods – Days, Fortnights, Months &
Weeks. However, you can also create new Payroll Units based on your business requirements.
Name Type Symbol
Hours Simple Hrs
Minutes Simple Mins
Hrs of 60 Mins Compound Hrs of 60 Mins
Go to Gateway of Tally > Payroll Info. > Units (Work) > Create
In the Unit Creation screen,
1. Simple is defaulted as the Type of Unit
2. Specify Hrs as the Symbol
3. Type Hours as the Formal Name
4. Specify 2 as the Number of Decimal Places
13
Creation of Payroll Masters
Types of Units:
□ Simple Units are individual units with no relationship with other units
i.e., Hrs, Nos, Pieces and so on.
□ Compound Units are a combination of two simple units, where the two
units have an arithmetical relationship with each other. For example, an
Hour of 60 Minutes.
Create the following Attendance Types for M/s. Spectrum Software Solutions.
Name Under Attendance/Production Type Period Type
Present Primary Attendance/ Leave with Pay Days
Absent Primary Leave without Pay Days
Overtime Primary Production Hrs of 60 Mins
14
Creation of Payroll Masters
3. Select Attendance/ Leave with Pay as the Attendance Type and the Period Type appears
as Days, by default.
15
Creation of Payroll Masters
In the same way, create Overtime as the Production Type with Production as the Attendance
Type.
Pay Heads
Pay Heads may be broadly considered as Earnings and Deductions from an employee’s point of
view. However, these pay heads would still be Expense and Liability from the employer’s view
point.
Some examples of Earnings Pay Heads are Basic Salary, Dearness Allowance, City Compensa-
tory Allowance, House Rent Allowance, Night Shift Allowance, Uniform Allowance, Sales Com-
mission and so on. Some examples of Deductions pay heads are Employees’ Provident Fund
(EPF), Employees’ State Insurance (ESI), Professional Tax, Income Tax, TDS, Advance (if any).
In Tally.ERP 9, each pay head is to be created as an individual ledger account and grouped under
its respective group i.e., all Earnings pay heads under Indirect Expenses group or Direct
16
Creation of Payroll Masters
Expenses group and all Deductions pay heads under Current Liabilities, Current Assets and
Duties & Taxes group.
Create the following pay heads in the books of M/s. Spectrum Software Solutions.
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
In the Pay Heads Creation screen,
17
Creation of Payroll Masters
Figure 2.11 Basic Pay Head Creation – Pay Head Type Selection
3. Specify the group as Indirect Expenses in the field Under and press Enter
4. Set Affect Net Salary to Yes
5. Specify Basic in the field Name to appear in Pay Slip
6. Set Use for Gratuity to Yes
7. Select On Attendance in the field Calculation Type and press Enter
18
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation is displayed as shown:
As Computed Value – This method is used when the pay value is computed
based on certain predefined factors i.e., slab rates, pay heads and so on.
As User-Defined Value – This method is used when the value of pay is not
fixed and does not depend upon any pay components.
Flat Rate – This method is used when the value of the pay heads is fixed for
the given month. This calculation type is not dependant upon attendance/pro-
duction. For example, conveyance of Rs. 800 per month.
On Attendance — This calculation type depends upon Attendance records
and is used along with rate per unit of attendance. For example, Overtime of
Rs. 25 per hour.
On Production — This method is used when the pay value is measured
based on work done i.e., pieces or numbers produced/manufactured.
19
Creation of Payroll Masters
The Pay Head Creation screen with the List of Attendance Types is displayed as shown below:
Figure 2.13 Pay Head Creation screen with List of Attendance Types
If the user intends to record Negative Attendance viz., Absent (i.e if the pay
value is measured on the basis of negative attendance units), select Not
Applicable in the Attendance/ Leave with Pay field and press Enter & then
select Absent in the Leave without Pay field. In the above example we are
selecting Positive Attendance unit i.e Present.
20
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation Periods is displayed as shown:
21
Creation of Payroll Masters
10. Select User defined in the Per Day Calculation Basis field
22
Creation of Payroll Masters
13. Select Normal Rounding as the Rounding Method and press Enter.
23
Creation of Payroll Masters
14. Specify 1 as the rounding Limit (The Rounding limit allows the value to be in multiples of the
limit specified and is based on the Rounding Method selected)
24
Creation of Payroll Masters
Figure 2.19 HRA Pay Head Creation screen - Calculation Type selection
8. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
25
Creation of Payroll Masters
9. In the Computation Info screen, select On Specified Formula in the Compute field
Computation on details:
On Current Deductions Total – This calculation type is used when the value
of a pay head depends upon the total of the deductions pay heads previously
defined.
On Current Earnings Total – This calculation type is used when the value of
a pay head depends upon the total earnings pay heads previously defined.
On Current Sub Total – This calculation type is used when the value of a
pay head depends upon the net totals of earnings and deductions previously
defined.
On Specified Formula – This calculation type is used when the pay head
value is computed on the value of one or more pay heads already defined in
the pay structure. (Tally.ERP 9 allows the addition and subtraction of pay
heads already defined in the pay structure and multiplication and divisions
using attendance types. For example, HRA is computed as 40% of the basic
salary.)
26
Creation of Payroll Masters
The pay head drop-down box contains pay heads already created. If any pay head(s) is a
component for the given Pay Head, you may create the required Pay Head by pressing Alt+C
from the above Pay Head field and make the necessary alterations in the required pay head.
27
Creation of Payroll Masters
28
Creation of Payroll Masters
14. Select Percentage as the Slab Type from the List of Slabs
29
Creation of Payroll Masters
15. Specify 40% in the Value Basis field and press Enter
The completed House Rent Allowance (HRA) Pay Head Creation screen is displayed as
shown.
30
Creation of Payroll Masters
31
Creation of Payroll Masters
32
Creation of Payroll Masters
Pay Head Pay Head Statutory Under Affect Name to Calcula- Computation
Name Type Pay Type Net Appear in tion Type Method
Salary Pay Slip
Employees’ Employees’ PF Current Yes EPF @ 12% As On
PF Contribu- Statutory Account Liabilities Computed Specified For-
tion @ 12% Deductions (A/c No.1) Value mula
Employees’ Employees’ Employee Current Yes ESI @ On Speci- Basic Pay +
ESI Contri- Statutory State Liabilities 1.75% fied For- House Rent
bution @ Deductions Insurance mula Allowance +
1.75% Conveyance +
Overtime Pay
(or Current
Earnings -
Variable Pay)
Profes- Employees’ Profes- Current Yes Profession As On Current
sional Tax Statutory sional Tax Liabilities Tax Computed Earnings Total
Deductions Value
33
Creation of Payroll Masters
34
Creation of Payroll Masters
3. Select PF Account (A/c No. 1) in the Statutory Pay Type field as shown:
4. Specify the group as Current Liabilities in the field ‘Under’ and press Enter (In Tally.ERP 9,
only relevant groups appear during selection, to reduce erroneous data inputs)
5. Set Affect Net Salary to Yes
6. Specify EPF @ 12% in the field Name to appear in Pay Slip
7. As Computed Value appears in the field Calculation Type by default
8. Select Normal Rounding as the Rounding Method. Specify 1 as the rounding Limit and
press Enter
9. Select On Specified Formula as the Compute method and press Enter
35
Creation of Payroll Masters
10. In the Compute sub-screen, select Basic Pay as the Add Pay Head function and press
Enter
36
Creation of Payroll Masters
14. Specify 6500 in the Amount Upto column and press Enter
15. Select Percentage as the Slab Type from the List of Slabs
16. Specify 12% as the Value Basis Percentage and press Enter (the From Amount is defaulted
as 6500)
17. Press Enter to accept the upper level as 0 and select Value as the Slab Type from the List of
Slabs
37
Creation of Payroll Masters
18. Specify Rs. 780 in the Value Basis field and then press Enter
Figure 2.33 Deduction Pay Head Creation screen with Value Basis
38
Creation of Payroll Masters
The completed Employee’s PF Contribution @ 12% Pay Head Creation screen is displayed as
shown:
39
Creation of Payroll Masters
Figure 2.35 Employee's ESI Pay Head creation screen - Compute On Selection
40
Creation of Payroll Masters
■ Similarly, select Conveyance and Overtime Pay as the Add Pay Head function
Figure 2.36 Employee's ESI Pay Head creation screen - Add Pay Head selection
Any income of a regular nature will be subject to ESI calculation viz., Basic
Pay, Dearness Allowance, House Rent Allowance, Conveyance, Overtime
etc.,)
41
Creation of Payroll Masters
Figure 2.37 Employee's ESI Pay Head creation screen – Slab Rate
42
Creation of Payroll Masters
The completed ESI – Employee’s Contribution Pay Head Creation screen is displayed as
shown:
Figure 2.38 Completed ESI – Employee’s Contribution Pay Head Creation screen
43
Creation of Payroll Masters
The completed Professional Tax Pay Head Creation screen is displayed as shown:
44
Creation of Payroll Masters
* Eligible salary refers to the sum of pay heads covered in the employee’s
latest pay structure, for the relevant period. The pay heads must be set to Yes
for Use for gratuity and the Gratuity ledger should be part of the pay struc-
ture.
# Served period is computed from the date of joining to the end date of cal-
culation period. Served period may be proportionate such as 11 years 10
months and 5 days.
When Served period covers more than one slab, the total of the calculations
of all the slabs will constitute the gratuity provisional amount of the employee.
45
Creation of Payroll Masters
The Slab Rate Details for Gratuity calculation screen is displayed as shown:
46
Creation of Payroll Masters
The completed Gratuity Expenses (Provisional) Pay Head Creation screen is displayed as
shown:
47
Creation of Payroll Masters
1. Select Vijay Kumar from the List of Employees and press Enter
In the Salary Details screen,
□ The Effective date is entered as 01-04-2009 by default based on the Date of Joining
entered in the Employee Master
□ Select Basic Pay as the Pay Head from the List of Pay Heads
□ Specify 10,000 as Rate
□ The Attendance units, Pay Head Type and Calculation Type appear by default, based
on the pay head definitions.
48
Creation of Payroll Masters
2. Select House Rent Allowance as the second Pay Head and press Enter
3. Select Conveyance as the next Pay Head
4. Specify 800 as Rate and press Enter
5. Select Overtime Pay as the Pay Head
6. Specify 55 as the Rate and press Enter
7. Select Variable Pay as the Pay Head and press Enter
8. Select Professional Tax against the Pay Head and press Enter
9. Select Employee’s PF Contribution @ 12%, Employee’s ESI Contribution @ 1.75% as Pay
Head and press Enter
10. Select the Gratuity Expenses (Provisional) ledger and press Enter (In case of Employees
eligible for Gratuity, the Gratuity Expenses ledger should be included in the Salary details of
the respective Employee for provisional assessment of Gratuity)
49
Creation of Payroll Masters
The completed Salary Details Creation screen for Mr. Vijay Kumar is displayed as shown:
Tally.ERP 9 allows you to modify the pre-defined Slab rates by pressing F12:
Configure and setting the option Allow to Override Slab Percentage to
Yes.
50
Creation of Payroll Masters
Similarly, create the pay structure for the other employees as per the details given in the following
table:
Pay Head Rahul Mahesh Ajay
Basic Pay 20,000 45,000 10,000
House Rent Allowance 40% 40% 20%
Conveyance — 1,000 2,000
Overtime Pay — — 100
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable as Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable as Slab Rates
Professional Tax Applicable as Slab Rates
Salary Details for Ajay can be created similar to the Salary Details creation for Vijay Kumar.
Since Ajay and Mahesh are in Sales Group, we can create the Salary Details for the Group and
inherit the same for the Employees (Ajay and Mahesh) in that Group.
51
Creation of Payroll Masters
The Pay structure created above can be inherited for all the employees belonging to Sales Group.
This feature helps in eliminating the repetitions while creating the Salary Details.
To define the Salary Details for Mr. Ajay belonging to Sales Group, follow the steps given below:
Go to Gateway of Tally > Payroll Info. > Salary Details > Create
1. From the List of Group / Employees select Ajay and press Enter
2. Select Copy From parent Value from the Start Type options under Pay Head
52
Creation of Payroll Masters
3. The Pay Structure (comprising of Earning & Deductions pay heads) defined for the Group is
prefilled automatically.
4. Enter the values for each Pay Head for Ajay as per the details mentioned earlier.
5. Press F12: Configure
■ Set the option Allow to Override Slab Percentage to Yes, since the HRA calculation
percentage is 20%.
53
Creation of Payroll Masters
54
Creation of Payroll Masters
Similarly, you can create the Salary Details for Mahesh and others employees.
55
Lesson 3: Processing Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt
There are three types of Payroll Vouchers namely Attendance Voucher, Payroll Voucher and
Payment Voucher, which are by default preset in Tally.ERP 9 to record above Payroll transac-
tions.
Payroll Vouchers are used for the purposes of operating your payroll and also records the attend-
ance of the employees for a given period. These vouchers are basically used to input information
pertaining to Payroll processing.
.
Attendance Vouchers
An Attendance Voucher is used to record employees’ attendance data, based on Attendance/
Production types (i.e., present or absent days, overtime hours and so on).
An Attendance Voucher allows you to record the attendance/ production units for employees.
Tally.ERP 9 gives you the flexibility to enter the attendance records through a single attendance
voucher for a payroll period, or through multiple attendance vouchers as and when required within
a payroll period. You also have the option of recording one attendance/ production voucher per
employee per day or collectively for a month or any other variation thereof for all the employees.
In Tally.ERP 9, the auto-fill facility (Alt+A) is used to prefill the required Attendance/Production
types data for the selected employee group/ employee for the specified period.
56
Processing Payroll in Tally.ERP 9
Example 1:
On 30th April, 2009 the attendance records of M/s. Spectrum Solutions displayed the
following details:
Attendance/ Produc- Vijay Kumar Rahul Mahesh Ajay
tion Types
Present Days 26 22 15 17
Overtime hours 900 Min 720 Min
(15hr x 60min) (12hr x 60min)
In the above scenario, separate attendance vouchers are required to be entered for recording
Present days and Overtime hours.
57
Processing Payroll in Tally.ERP 9
■ Select All Items as Employee/ Group (if you want to generate payroll voucher for indi-
vidual employee/ group, select the respective employee or group)
58
Processing Payroll in Tally.ERP 9
The Attendance Auto Fill with Employee Filters screen is displayed as shown:
■ Specify the require value that should be prefilled for all Employees e.g. 26
■ Press Enter to accept the screen
59
Processing Payroll in Tally.ERP 9
60
Processing Payroll in Tally.ERP 9
The Attendance Voucher Creation screen with the attendance details screen is displayed as
shown:
7. Press Enter
8. Enter the details of the transaction in the Narration field
61
Processing Payroll in Tally.ERP 9
The completed Attendance Voucher Creation for Present Attendance is displayed as shown:
Days with Loss of Pay (LOP) are treated as a Deductible with respect to the
Earnings Pay Head type and as a Payable with respect to the Deductions
Pay Head type. For example, LOP is deducted from the Basic salary
(Earnings Pay Head) and Canteen expenses (Deductions Pay Head) are
treated as a payable.
62
Processing Payroll in Tally.ERP 9
You can also record Overtime in hours, provided the Unit of Measurement for
the Payroll unit is defined as Hrs.
After creating the Attendance Voucher, you can change any attendance value for a particular
employee, if required, in the Voucher Alteration mode.
63
Processing Payroll in Tally.ERP 9
Payroll Vouchers
A payroll voucher is used to record all employee-related transactions. It enables you to compute
all the values for the respective Pay Heads (Earnings and Deductions).
The calculations are made on the basis of the definitions specified in the pay head masters, pay
structure and attendance entries. In Tally.ERP 9, you can pass payroll vouchers manually for indi-
vidual employee as well as for the entire group/ organisation by using the Auto Fill facility (Alt+A).
In Tally.ERP 9, the disbursement of salaries can be effected in any of the following modes.
□ Direct Remittance – in cash or by cheque
□ Bank Transfer – a direct transfer is made to an employee’s bank account and the list of
disbursement is printed separately
Cash Remittance
Example 2:
On 30th April, 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
64
Processing Payroll in Tally.ERP 9
65
Processing Payroll in Tally.ERP 9
All the pay values are calculated for the applicable pay heads for each employee grouped under
the selected group.
66
Processing Payroll in Tally.ERP 9
4. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee (in this case, define the Variable Pay)
67
Processing Payroll in Tally.ERP 9
■ Similarly, specify 1500 as Variable Pay for Vijay Kumar and press Enter
68
Processing Payroll in Tally.ERP 9
Press Alt+S to pass the above voucher in the Voucher mode. This can be
used to keep track of Bill References. e.g. if there are more than one Salary
Advances, then the to track the recovered Amount from Employee’s salary
against the respective Advance given, this feature should be used.
Bank Transfer
Bank transfer refers to disbursement of Salaries directly into the Employee Bank Accounts by inti-
mating the Bank through a Payment advice. Tally.ERP 9 facilitates processing salaries through
Bank transfer with the help of predefined Salary process.
Example 3:
On 31st May, 2009 M/s. Spectrum Solutions disbursed Salaries payable for the month of
May 2009 through Bank Transfer. The attendance records displayed the following details:
69
Processing Payroll in Tally.ERP 9
On 31st May 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
Particulars Vijay Kumar Rahul Mahesh Ajay
Variable Pay 500 - 1200
70
Processing Payroll in Tally.ERP 9
71
Processing Payroll in Tally.ERP 9
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
The completed Salary Payable Ledger creation screen is displayed as shown:
72
Processing Payroll in Tally.ERP 9
9. Press Enter (All the pay values are calculated for the applicable pay heads for each employee
grouped under the selected group).
10. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee
■ Specify 1200 as Variable Pay for Ajay
■ Specify 500 as Variable Pay for Vijay Kumar
The completed Payroll Voucher for the month of May 2009 is displayed as shown:
73
Processing Payroll in Tally.ERP 9
After passing the above entry, the salaries payable for the month of May 2009 are transferred to
the Salary Payable Ledger, at the time of payment of salaries, the amount is reversed.
Example 4:
On 31st May 2009, M/s. Spectrum Solutions paid the salaries due for the month of May
2009.
Before passing the payment voucher, necessary Bank Accounts should be created. To make the
Salary payment, follow the steps given below:
74
Processing Payroll in Tally.ERP 9
4. Press Enter and the employee payroll details will appear by default.
5. Enter the details of the transactions in the Narration field
75
Processing Payroll in Tally.ERP 9
The unpaid salary will remain as outstanding in the Salary payable account and can be auto-filled
in the payment voucher as and when the actual payments are made.
□ If any cash disbursements are made prior to the payment voucher entry,
after using the Auto-Fill facility, select the unpaid salaries and enter zero
(0) in the amount payable.
□ If salaries are disbursed by cheque, select individual employee in the
Auto Fill Employee Filter and print the cheque for the payment voucher.
You have to create separate payroll payment entries for each employee.
76
Lesson 4: Accounting for Employer PF
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
The Employees' Provident Funds and Miscellaneous Provisions Act is a social security legislation
which administers provident fund, family pension and insurance to employees. The Act covers
three schemes, namely; PF (Provident Fund scheme), EPS (Employees’ Pension Fund Scheme),
EDLI (Employees Deposit Linked Insurance scheme).
Under the Employees’ Provident Fund scheme, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance, cash value of food conces-
sion and retaining allowance (if any), payable to employees per month. The contribution rate is
10% in the case of the following establishments:
□ Any covered establishment with less than 20 employees
□ Any sick industrial company as specified in the relevant section of Sick Industrial Compa-
nies (Special Provisions) Act, 1985 and which has been declared as such by the Board for
Industrial and Financial Reconstruction
□ Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and
□ Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar
gum Industries/ Factories.
The Contribution payable by the Employer is not to be deducted from the wages of the employee.
However, the employer has to deduct employee's share from their Salaries and pay the same in
EPF scheme. The deduction can be made only from the wages pertaining to a period for which
contribution is paid. However, if there is an accidental omission, the amount can be recovered
later.
77
Accounting for Employer PF Contributions
Out of the employer's contribution of 12% or 10%, the Employer's contribution of 8.33% is
diverted to Employees' Pension Scheme and the balance is retained in the EPF scheme. On
retirement, the employee gets his full share plus the balance of Employer's share retained to his
credit in the EPF account.
Once an establishment is covered under PF, all its departments and branches are covered, irre-
spective of where they are located.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Provident Fund.
78
Accounting for Employer PF Contributions
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions processed Provident Fund contribu-
tions for the month of April 2009 and paid the amount in full to EPFO.
79
Accounting for Employer PF Contributions
3. In the field Statutory Pay Type, select EPS Account (A/c No. 10) as shown
4. Specify the Group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. By default the Calculation Type is set to As Computed Value and Calculation Period as
Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
□ In the Computation Info section,
■ Select On Specified Formula in the Compute field
■ Press Enter, the Compute subscreen appears
■ In the Compute Sub screen,
80
Accounting for Employer PF Contributions
■ Select Basic Pay as the Add Pay Head function from the list of Pay Heads as shown.
81
Accounting for Employer PF Contributions
The completed Employer EPS @ 8.33% Pay Head Creation screen is displayed as shown:
82
Accounting for Employer PF Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
8. In the Computation Info section,
□ Select On Specified Formula in the Compute field
□ Press Enter and the Compute On subscreen displays
□ In the Compute sub-screen,
■ Select Employee’s PF Contribution @ 12% from the List of Pay Heads as the Add
Pay Head function and press Enter
■ Select Subtract Pay Head in Function and under Pay Head select Employer EPS @
8.33% from the List of Pay Heads.
83
Accounting for Employer PF Contributions
84
Accounting for Employer PF Contributions
The completed Employer EPF @ 3.67% Pay Head Creation screen is displayed as shown:
Alternatively, you can also define the criteria for computation of Employer PF
Contribution @ 3.67% Pay head, by selecting Basic Pay in the Compute sub-
screen. and defining the percentage as 3.67%.
85
Accounting for Employer PF Contributions
4. Specify the group as Current Liabilities in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. The Rounding Method is defaulted to Normal Rounding and 1 defaulted as the rounding
Limit
8. In the Computation Info section,
□ On PF Gross is selected automatically in the Compute field
□ Specify 1-4-2009 as the Effective From date
□ Specify 6500 in the Amount Upto column
□ Select Percentage as the Slab Type and specify 1.10% in the Value Basis field and press
Enter
86
Accounting for Employer PF Contributions
The completed PF Admin Charges @ 1.10% Pay Head Creation screen is displayed as shown:
87
Accounting for Employer PF Contributions
3. In Statutory Pay Type filed select EDLI Contribution (A/c No. 21) as shown
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ In the Compute field, On PF Gross is selected by default.
□ Specify 1-4-2009 as the Effective From date (In case of a revision in pay structure, you
can define the revised computation information for the given pay head, by giving the effec-
tive from date)
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column.
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.5% in the Value Basis field and press Enter
88
Accounting for Employer PF Contributions
The completed EDLI Contribution @ 0.5% Pay Head Creation screen is displayed as shown:
89
Accounting for Employer PF Contributions
■ Set Minimum Rs 2/Employee to Yes if you want the EDLI Admin Charges to be mini-
mum Rs. 2.
When the option Minimum Rs 2/Employee is set to Yes, the EDLI Admin
Charges for each employee is minimum Rs. 2 or actual value as calculated.
When this option is set to No the EDLI Admin Charges are calculated as per
the specified formula.
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ On PF Gross is selected in the Compute field, by default
□ Specify 1-4-2009 as the Effective From date
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.01% in the Value Basis field and press Enter
90
Accounting for Employer PF Contributions
The completed EDLI Admin Charges @ 0.01% Pay Head Creation screen is displayed as
shown:
91
Accounting for Employer PF Contributions
92
Accounting for Employer PF Contributions
93
Accounting for Employer PF Contributions
Similarly, include Employee Contribution Pay Heads in the Salary Details Masters of other
employees.
□ It is necessary to include Employer Contribution Pay Heads (i.e.,
Employer PF and Employer Pension Fund Pay Heads in the Salary
Structure of the Employee, to automate the Computation of Employer
PF Contribution on the basis of payments made to Employees.
□ While, including the Employer Contribution Pay Heads in the Salary
Details master, the order of precedence in which the Pay Heads are
included must on the basis of their calculation criteria i.e.,
i. Earning Pay Heads
ii. Deduction Pay Heads
iii. Professional Tax or Income Tax Pay Heads (if any)
iv. Employee PF Contribution Pay Heads
v. Employer PF Contribution Pay Heads
vi. Gratuity (Gratuity is calculated on Basic Pay + DA, hence Gratuity Pay
Head can be sequenced in the Salary details of an Employer in any
order after Earnings Pay Heads).
94
Accounting for Employer PF Contributions
Tally.ERP 9 provides the following predefined processes that will help in process-
ing Payroll transactions:
i. ESI Contribution: This process is selected to automate computation
of Employer ESI Contribution.
ii. PF Contribution: This process is selected to automate computation
of Employer PF Contribution
iii. Salary: This process is selected to automate computation of Salaries
payable to Employees.
■ Specify 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Select Primary Cost Category in the Employee Category field
■ Select All Items as Employee/ Group field (To process, for a particular group /
Employee select the respective Employee / group, as required)
95
Accounting for Employer PF Contributions
■ Select PF Payable Ledger from the list of Ledger Accounts drop down in the Payroll
Ledger field as shown
The values for the Employer PF contributions are prefilled in the Payroll Voucher for PF Contribu-
tion process.
96
Accounting for Employer PF Contributions
97
Accounting for Employer PF Contributions
98
Accounting for Employer PF Contributions
99
Accounting for Employer PF Contributions
■ Select PF Admin Charges @ 1.10% Ledger in the Admin Charges (A/c No. 2) field
as shown
Figure 4.21 Employer’s Other Charges screen – Admin Charges Ledger Selection
■ Similarly, select EDLI Contribution @ 0.5% and EDLI Admin Charges @ 0.01% in
the EDLI Contribution (A/c No. 21) and EDLI Admin Charges (A/c No. 22) fields
respectively.
100
Accounting for Employer PF Contributions
■ Press Enter
4. Type the details of the transaction in the Narration field
101
Accounting for Employer PF Contributions
To process the payment of Provident Fund, follow the steps given below:
102
Accounting for Employer PF Contributions
■ Select PF Challan in the Process for field from the Process List screen
■ Enter 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
■ Select HDFC Bank in the Bank / Cash Ledger field
■ Select PF Payable Ledger in the Payroll Ledger field
4. Press Enter to prefill PF Payable Amount in respect of Employer Contributions during the
relevant month
103
Accounting for Employer PF Contributions
104
Accounting for Employer PF Contributions
5. Press Enter again, to prefill the amount of Employee Contributions during the relevant
month
105
Accounting for Employer PF Contributions
6. Press Enter thrice again, to prefill EDLI Admin Expenses, EDLI Contribution and PF Admin
Charges during the selected month as shown:
106
Accounting for Employer PF Contributions
107
Accounting for Employer PF Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
The printed PF Combined Challan for the month of April 2009 of M/s. Spectrum Software
Solutions is displayed as shown:
108
Lesson 5: Accounting for Employer ESI
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
ESI Contribution refers to the amount payable to the Corporation by the Principal Employer in
respect of Employees and comprises of the amount payable by the employee as well as the
employer.
The employer is required to calculate and remit ESI Contributions comprising of employers' share
and employees' share on or before the 21st of the subsequent month in respect of salaries of the
related month. The Principal Employer should pay the Employer’s share of contribution @ 4.75%
in respect of every employee whether employed directly or through an immediate employer. And
the Employee’s share @ 1.75% has to be recovered by making a deduction from their wages for
the respective salary/wages period.
In case, if the employee is drawing upto Rs. 70/- as daily average wage, he is exempt from
payment of his share of contribution. However, the employer has to pay employer’s share of
4.75% of the Salary payable to the employees.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Employee State Insurance.
109
Accounting for Employer ESI Contributions
Illustration 1:
On 1st June 2009, the list of new joinees with their Salary details are given below:
Employee Name Department Date of Joining
Suresh Administration 1-6-2009
Rajesh Sales 10-6-2009
The Salary details for the above new employees are listed in the table below:
Pay Head Suresh rajesh
Basic Pay 4,500 5000
House Rent Allowance 40% 40%
Conveyance 600 800
Overtime Pay — —
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable based on Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable based on Slab Rates
Profession Tax Applicable based on Slab Rates
The Attendance details for the month of June 2009 are given as shown:
Attendance/ Production Vijay Rahul Mahesh Ajay Suresh Rajesh
Types Kumar
Present Days 26 21 20 22 23 21
Overtime hours 120 Min 600 Min
The Variable Pay details for the month of June 2009 are given as shown:
Particulars Vijay Rahul Mahesh Ajay Suresh Rajesh
Kumar
Variable Pay 0 0 0 0 0 0
110
Accounting for Employer ESI Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
111
Accounting for Employer ESI Contributions
112
Accounting for Employer ESI Contributions
□ Specify 1-4-2009 in the Effective From date field and press Enter, the From Amount col-
umn is automatically skipped, assuming the amount to be zero
□ The Amount Upto field is skipped and automatically defaulted with the amount specified in
the Payroll Statutory Details screen in F11: Satutory & Taxation
□ Select Percentage in the Slab Type field
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
In Tally.ERP 9, the Earning Payheads which are selected for computation of Employer ESI contri-
bution are listed in the Specified Formula for easy reference. You can alter / modify the criteria for
calculation, by pressing Enter in the Compute field and redefining the Function Pay components.
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
□ Press Enter to accept
113
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Pay Head Creation screen is displayed as shown:
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
1. Type ESI Payable in the Name field
2. In the Pay Head Type field select Not Applicable
3. Specify the group as Current Liabilities in the Under field and press Enter
114
Accounting for Employer ESI Contributions
115
Accounting for Employer ESI Contributions
Similarly, include Employer ESI @ 4.75% Pay Head in the Salary details of all other Employees.
116
Accounting for Employer ESI Contributions
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Select Primary Cost Category as Employee Category field
□ Select All Items in the Employee/ Group field
117
Accounting for Employer ESI Contributions
118
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Voucher Creation screen is displayed as shown:
Payment of ESI
In Tally.ERP 9, once the process for Employee and Employer contributions to Employee’s state
Insurance is implemented in the manner as discussed in earlier sections, the total amount
payable to ESIC comprising of Employee’s Contribution as well as Employer’s contribution to ESI
is accumulated separately in the ESI Payable Ledger. At the time of making the payment to ESIC,
a payment voucher is required to be passed.
119
Accounting for Employer ESI Contributions
To process the payment of ESI and generate ESI Challan, follow the steps given below:
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Specify 30-6-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
□ Select Primary Cost Category in the Employee Category field
□ Select All Items in the Employee/ Group field
120
Accounting for Employer ESI Contributions
121
Accounting for Employer ESI Contributions
122
Accounting for Employer ESI Contributions
6. Press Enter to prefill the Employer’s ESI Contribution amount for the eligible Employees
123
Accounting for Employer ESI Contributions
7. Press Enter again, to prefill the Employee’s ESI Contribution amount against the eligible
Employees
Figure 5.14 ESI Payment Voucher with both Employee and Employer Contributions
124
Accounting for Employer ESI Contributions
The completed ESI Payment Voucher for the month of June 2009 is displayed as shown:
125
Accounting for Employer ESI Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
126
Accounting for Employer ESI Contributions
The printed ESI Payment Challan for the month of June 2009 of M/s. Spectrum Software
Solutions is as shown:
127
Lesson 6: Payment of Professional Tax
Lesson Objectives
On completion of this lesson, you will be able to:
Professional Tax is applicable to those individuals or professionals in India who are involved in
any profession or trade. The state government of each state governs and administers the levy and
collection of Professional Tax in the respective State.The state is empowered with the
responsibility of structuring as well as formulating the professional tax criteria for the respective
state. Professional tax is charged on the income of Individuals, profits of business or gains in
vocations as per the list II of the Indian Constitution.
In India, Professional Tax slabs vary from state to state and some of the states have formulated
different professional tax slabs for men, women and senior citizens. The rates depend upon
profession, years in the profession and the amount of income or turnover and so on. In Karnataka,
the professional taxes leviable are as follows:
S.No Salary or wage earners whose salary or wage or Tax Amount
both, as the case may be, for a month is,
(a) Less than Rs.5000 Rs. 0 Per month
(b) Not less than Rs. 5,000 but less than Rs.8,000 Rs. 60 Per month
(c) Not less than Rs.8,000 but less than Rs.10,000 Rs.100 Per month
(d) Not less than Rs.10,000 but less than Rs.15,000 Rs.150 Per month
(e) Rs. 15,000 and above Rs.200 Per month
128
Payment of Professional Tax
The creation of Professional Tax Pay Head is discussed in detail in the Creation of Masters
chapter and the procedure to process Professional Tax Deduction from Employee Salaries is
discussed in detail in Processing Payroll in Tally.ERP 9 Chapter. In this section, we will discuss
the recording of transactions related to payment of Professional Tax.
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions made a payment of Professional Tax
for the month of April 2009.
The same is accounted as shown:
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers
1. Press F5 for Payment Voucher
2. Press F2, specify the date as 30-04-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In Employee Filters screen,
■ Select Professional Tax Payment from the Process List
■ Specify 1-4-2009 and 30-4-2009 in the From and To date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
129
Payment of Professional Tax
130
Payment of Professional Tax
■ Press Enter to accept the screen and go back to the Payment Voucher screen
■ Press Enter to prefill the Professional Tax amount in the Payment Voucher
131
Payment of Professional Tax
132
Lesson 7: Tracking of Salary Advances / Loans
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 helps you track Salary Advance / loans given to employees and provides the flexibility
to specify simple to complex criteria for Recovery of Salary Advances or loans viz., Flat or manual
deduction and provision of lumpsum loan recovery and so on. Tally.ERP 9 also allows you to
generate a Month wise break-up report for the amount of loan disbursed, recovery of instalments
made and balance amount of Loan / Salary advance. Further, you can also use the Interest Cal-
culation feature of Tally.ERP 9 to compute interest on loans to employee etc.
In Tally.ERP 9, tracking of Salary Advances / Loans paid to employees follow the steps given
below:
□ Creation of Masters
□ Modify / Alter Salary Details
□ Payment of Salary Advance
□ Recovery of Salary Advance
Creation of Masters
Tally.ERP 9 allows you to create different ledgers for different types of Loans / Salary Advances.
Create the following ledger:
Ledger Pay Head Type Under
Staff Salary Advance Loans and Advances Loans and Advances (Asset)
133
Tracking of Salary Advances / Loans
The completed Staff Salary Advance Ledger creation screen is displayed as shown:
The Calculation Type can be taken as Flat Rate if you wish to deduct the
Loan Amount in Flat installments (EMI’s). In this case the Pay Head should
be removed from the Pay Structure after the entire amount is recovered from
the Employee’s salary.
134
Tracking of Salary Advances / Loans
Go to Gateway of Tally > Payroll Info. > Salary Details > Alter
1. Select Vijay Kumar from the List of Groups / Employees and press Enter, the Salary
Details Alteration screen appears
2. In the Salary Details Alteration screen,
3. Tab down to the last line and select Staff Salary Advance ledger in the Pay Head field
4. Select End of List and press Enter
135
Tracking of Salary Advances / Loans
Illustration 1:
On 2nd July, 2009 M/s. Spectrum Software Solutions paid Salary Advance to the following
Employees with the mode and amount of recovery.
136
Tracking of Salary Advances / Loans
2. In the Dr field, select Staff Salary Advance ledger from the list of ledgers
3. Specify 13000 in the Dr Amount field and press Enter, the Cost Allocations for subscreen
appears
4. In the Cost Allocations for subscreen,
□ Select Primary Cost category in the Employee Category field
□ Select the required Employee (Rahul) from the list of Cost Centres and press Enter
137
Tracking of Salary Advances / Loans
138
Tracking of Salary Advances / Loans
139
Tracking of Salary Advances / Loans
140
Tracking of Salary Advances / Loans
□ Similarly, tab down to Staff Salary Advance ledger field of Rajesh and specify 1500 as
the amount to be deducted
141
Tracking of Salary Advances / Loans
If there are multiple Loans given to the Employees and if you wish to keep a
track of recovered loan amount against the Loan given, then you need to
pass a separate payroll voucher in ‘As Voucher’ format, as the bill-wise
details screen won’t appear in the ‘As Pay Slip’ format.
142
Lesson 8: Accounting for Pay Revision &
Arrears
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a facility to process Arrears / Increments for a current Period as well as for a
prior period. It allows you to compute Arrears for a retrospective period, by defining the effective
date of such revisions or increments. Consider the following scenarios to understand the steps
involved in processing Salary revisions / Arrears calculation in Tally.ERP 9.
□ Salary Revision / Arrear Calculation for Prior Period
□ Salary Revision / Arrear Calculation for Current Period
Illustration 1:
On 5th August, 2009 M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such a revision is effective from 1st May 2009.
143
Accounting for Pay Revision & Arrears
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee, so as to take into consideration the declared Salary Revision / arrear
payment for/from the relevant period.
144
Accounting for Pay Revision & Arrears
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 50000
□ Tab down to Conveyance Pay Head and alter the amount to 2000
□ Press Enter to go to the End of List
The completed Salary Details screen is displayed as shown:
145
Accounting for Pay Revision & Arrears
■ Press Enter to automatically prefill the salary arrear amounts for the selected period
146
Accounting for Pay Revision & Arrears
147
Accounting for Pay Revision & Arrears
The completed Salary Arrears Payment voucher of Mahesh for the period from May 2009 to July
2009 is displayed as shown:
The Salary Arrears / Increments may result in increase in Earning Pay com-
ponents which in turn may result in an increase in the tax liability i.e., an
increase in Basic Pay will result in an increase in HRA and such additional
income will be liable to Income Tax or Payroll taxes viz., PF, ESI and PT. The
procedure to make payments of PF, ESI or PT has been discussed in the
previous chapters.
148
Accounting for Pay Revision & Arrears
Illustration 2:
On 15th August 2009, M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such revision is effective from the current month i.e., August 2009.
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee to take effect the declared Salary Revision / arrear payment for/from the
relevant period.
149
Accounting for Pay Revision & Arrears
StartType Options
□ Copy From Parent Value: This option is selected, when the pay struc-
ture details of the Parent group (to which Employee Group, the
employee is grouped under or falls) is required to be prefilled in the Sal-
ary details master.
□ Copy From Previous Value - This option is selected, when the pay
structure details of the Employee for a preceeding period is required to
be prefilled for a future period, in the Salary details master.
□ Start Afresh: This option is selected, when the pay structure details of
the Employee has to be created newly.
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 11000
□ Press Enter on HRA Pay Head and alter the percentage to 30% (To alter the percentage,
ensure in F12: Configure, Allow to Override Slab Percentage is set to Yes)
□ Tab down to Conveyance Pay Head and alter the amount to 2000
150
Accounting for Pay Revision & Arrears
151
Accounting for Pay Revision & Arrears
152
Accounting for Pay Revision & Arrears
You may process Employer and Employee’s contribution to Provident Fund and Employee’s State
Insurance and payment of Profession Tax in the manner as discussed in the earlier chapters.
153
Lesson 9: Processing Payroll for Contract
Employees
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a simplified process for tracking and processing salaries for casual and
contract workers and helps in the generation of contract related reports. Tally.ERP 9 allows you to
process salaries for contractual employees for their services rendered during the agreed tenure.
You may compute salaries on hourly or production basis as agreed upon, by defining the required
criteria for the Pay components.
In this Chapter, we will discuss the recording of transactions related to computation of salaries for
Contractual employees.
Illustration 1:
On 5th August 2009, M/s. Spectrum Software Solutions hired two persons on contract.
154
Processing Payroll for Contract Employees
155
Processing Payroll for Contract Employees
156
Processing Payroll for Contract Employees
157
Processing Payroll for Contract Employees
158
Processing Payroll for Contract Employees
The completed Salary Details creation screen for James is displayed as shown.
159
Processing Payroll for Contract Employees
The completed Attendance Voucher for the Contract Employees is displayed as shown:
160
Processing Payroll for Contract Employees
Process Payroll
On 31st August 2009, M/s. Spectrum Software Solutions processed salaries for the
contract employees through Cash. The Local Conveyance for August 2009 is as follows:
161
Processing Payroll for Contract Employees
The completed Payroll Voucher for Contract Employees for the month of August 2009 will
appear as shown:
162
Lesson 10: Payroll Reports
Payroll Reports help you ascertain the payroll expenses for a specified month or for year-to-date
(YTD) transactions for a particular employee/ group along with the Attendance and Production
details. You can also view the statutory forms required for Provident Fund and Employee State
Insurance. In Tally.ERP 9, the Payroll reports can be broadly categorized into two viz.,
□ Payroll Reports
□ Payroll Statutory Reports
163
Payroll Reports
Payroll Reports
In Tally.ERP 9, you can generate the following Payroll related reports.
164
Payroll Reports
In Tally.ERP 9 Payroll, the Pay Slip can be configured to vertically display the details of attend-
ance, in terms of attendance or production, with Year to Date Values (YTD).
165
Payroll Reports
Some of the options in F12: Configuration screen, are by default set to Yes
viz., Show Employee Details, Show Attendance/Production Details,
Show Attendance/Production Groups, Remove Zero Entries for Attend-
ance/Production also based on the Payroll Features / Payroll Statutory
features enabled during voucher entry.
166
Payroll Reports
167
Payroll Reports
The Pay Slip now displays the Attendance with Present / Overtime details, Year to Date balance,
and so on. To view the Pay Slip in vertical form, press F12: Configure and set Show Vertical Pay
Slip to Yes.
168
Payroll Reports
□ You can view additional information in the Pay Slip, by pressing Alt+F1.
169
Payroll Reports
The voucher number, date and the number of attendance or payroll records are displayed as
shown in the above image. This is very useful when multiple attendance/payroll vouchers are
entered for the same payroll period. You can drill down to the voucher level for reference or to
effect an alteration by pressing Enter on the required record.
Period Button – By default, the Pay Slip for the current month is displayed.
However, you can change the period by pressing F2: Date and defining the
required date. This button can be used to display multiple period payroll infor-
mation to view/print a consolidated Pay Slip.
Employee Button – From the existing Pay Slip of an employee, you can tog-
gle between employees by pressing F4: Employee.
170
Payroll Reports
Some of the configuration in the Printing screen, are similar to F12: Configure and can be config-
ured from either of the screens. Additionally, the Show Authorised Signatory option is available
in the above screen.
□ In the Printing Pay Slip screen, press Backspace and enable the required option as
required
□ Press Enter to Print
171
Payroll Reports
172
Payroll Reports
173
Payroll Reports
174
Payroll Reports
175
Payroll Reports
The Pay Slip sent by e-mail when viewed from the mail box of the employee is as shown:
176
Payroll Reports
The Pay Slip can also be exported to pdf, jpeg or other formats as per the requirement.
177
Payroll Reports
E-mail IDs
To check the E-Mail IDs entered,
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip > E-
Mail IDs
The above report displays the Employees’ for whom the E-Mail iD’s are either not entered or
incorrectly entered. You can press Ctrl+Enter to add or alter the E-Mail ID’s for the required
Employees.To view the E-Mail ID’s for all Employees you can press F5: All Items from the above
report.
178
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip >
Multi Pay Slips
179
Payroll Reports
□ Select the appropriate Employee Category and Employee Group in the Employee FIlters
subscreen as shown:
180
Payroll Reports
Tally.ERP 9 provides the flexibility to E-Mail/Print or Export all Pay Slips from the above screen
using the standard Alt+M/Alt+P/Alt+E buttons from the above screen.
The options in the email/print and Export screens are similar to Single Pay Slip report already dis-
cussed.
Pay Sheet
A Pay Sheet is a columnar report which displays the Group/Department-wise break-up of employ-
ees’ earnings and deductions for the selected month.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Sheet
□ Select the All Items in the Name of Employee Category field
□ Select All Items in the Name of Employee / Group as shown:
181
Payroll Reports
You can further configure the Pay Sheet to display the net amount, column subtotals, Category/
Group subtotals, user-defined Pay Slip names, Employee names and sort it by Employee number
in the F12: Configure.
The F12: Configuration from the Pay Sheet screen is displayed as shown:
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The Pay Sheet with the above configurations will appear as shown:
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To view the Pay Sheet till date with Category and Group Totals,
□ Press Alt+F2 and change period as 01-04-2009 to 31-08-2009
□ Press F12: Configure and set Show Category/Group Total to Yes
The Pay Sheet with Category and Group Totals displays is displayed as shown:
Button options:
□ Detailed/Condensed Button – This button (Alt+F1) is used to toggle
between the detailed and condensed modes of reporting.
□ Period button – This option (F2) is used to define the periodicity of the
report, i.e. for a day, week, fortnight, month, quarter, half-year, year or
any given period.
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The Pay Sheet for the selected Employee Group is displayed as shown:
You can also drill down from the above report to the voucher level, by highlighting the pay heads
column of the required employee and pressing Enter.
Button Options:
□ Employee Filter Button – By using the Employee Filter button
(Ctrl+F7), view the individual employee/ Employee group pay sheet
report.
□ New Column – This option (Alt+C) is used to add a new column for any
other Pay Head, which is not part of the pay structure.
□ Alter Column – This option (Alt+A) is used to replace an existing col-
umn in the report with another Pay Head column.
□ Delete Column -– This option (Alt+D) is used to delete an existing col-
umn in the report.
You can also print the Pay Sheet, by pressing Alt+P and specifying the required options in the
Pay Sheet Print configuration screen.
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While printing the Pay Sheet, you can choose to Increase the Line Height (for each employee
line) if you want to create space for the employee’s signature or to affix a stamp. Such a Pay
Sheet can also be used for the salary disbursement register.
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□ Press Alt+P to print Pay Sheet and set the Increase Line Height for Signature/ Stamp?
field to Yes
The printed Pay Sheet with space for signature/ stamp is as shown.
Figure 10.28 Printed Pay Sheet with space for Signature/ Stamp
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Figure 10.29 Printed Pay Sheet with space for Signature/ Stamp – Page 2
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You can also E-mail or use Export Pay Sheet Report in the manner as
discussed in Pay Slip Section. The navigation steps for E-mailing and
Exporting Pay Sheet is similar to the steps explained in Pay Slip Report.
Payroll Statement
A Payroll Statement is a columnar report which displays Group/Department-wise employees’
break-up of selected earnings or deductions, for a specified month or period.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payroll
Statement
□ Select the required pay head and press Enter
The Payroll Statement for Basic Pay Earnings Head for the month of April 2009 is displayed as
shown:
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You can further configure the Payroll Statement to display the Employee groups and categories,
category/group subtotals, grand totals, user-defined Pay Slip names, employee names, employee
bank details, sort it by Employee number, by pressing F12: Configure
□ Enter the details in F12: Configuration screen as shown
The F12: Configuration screen is displayed as shown:
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□ You can also Email or Export Payroll Statement in the manner as dis-
cussed in Pay Slip Section.
□ The Button Bar options in Payroll Statement are same as in the Pay-
sheet report.
To view Payroll Statement for other Pay Heads, you can either select other Pay Head(s) in the
manner as discussed or you may also include other Pay Heads in the above report for compara-
tive analysis or to obtain a cumulative value, by pressing Alt+C and selecting the required Pay
Head(s).
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The Payroll statement with additional Pay Heads will be displayed as shown:
Payment Advice
A Payment Advice is an intimation letter containing the details of employees with their bank
account numbers issued to the banker to transfer a specified sum (salaries earned) to the
employees’ bank accounts.
As discussed earlier, the contents of the Payment Advice can be altered in F12: Payroll Configu-
ration as per the employer’s requirements.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payment
Advice
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The printed Payment Advice for May 2009 will appear as shown:
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□ The Payment Advice will be available only when the Salaries are proc-
essed through Bank Transfer and a Payment voucher is passed for the
salaries payable for a given month/period.
□ You can also Email or Export Payment Advice in the manner as dis-
cussed in Pay Slip Section.
Payroll Register
A Payroll Register is a month-wise transaction summary report which displays the number of
payroll vouchers passed during a particular month. Additional information can be appended into
the Payroll Register, by inserting a new column with the required voucher type i.e., Attendance,
Journal, Purchases, Sales and so on.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Payroll
Register
The Payroll Register is displayed as shown:
□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown.
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Payroll Reports
Tally.ERP 9 allows you to drill down to the voucher level from the above display for any kind of
verification. Use the Enter key on the required month/period to drill down to the required level.
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You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Employee Pay
Head Breakup
□ Select the required Pay Head from the List of Pay Heads and press Enter
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The Employee Breakup of Pay Head for Basic pay screen is displayed as shown:
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Payroll Reports
You can also Email or Export Employee Breakup of Pay Head Report in
the manner as discussed in Pay Slip Section.
To drill down to the Employee Monthly Summary report from the Employee Summary report,
□ Highlight the required employee and press Enter
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To further drill down to Employee Voucher level screen from the Employee Monthly Summary
report, press Enter on the required month.
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You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
The Employee Breakup of Pay Head report can be viewed with additional Pay Heads, by
pressing Alt+C and adding the required Pay Head and by pressing Alt+N for multiple periods.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Pay Head
Employee Breakup
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To further drill down to view the Breakup of Employee report for each ledger from the above
displayed report, select the required ledger and press Enter.
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The Breakup of Employee screen for a selected ledger (Basic Pay) is displayed as shown:
You can drill down further to view the Monthly Summary of the selected ledger and the Employee
Voucher report.
The Pay Head Employee Breakup report can be viewed with additional employees, by pressing
Alt+C and adding the required Employee and for multiple periods, by pressing Alt+N.
Attendance Sheet
An Attendance Sheet is a columnar report which displays the details of Attendance/ Production
types with the number of attendance/ production units achieved during a particular month or
period.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Sheet
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You may configure the above report with additional details, by pressing F12:Configure and
enabling the following options, as required.
The completed F12: Configuration screen is displayed as shown:
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Attendance Register
An Attendance Register is a month-wise transactions summary report which displays the number
of attendance vouchers passed during the month. You can append additional information by
inserting a new column with the required voucher type, i.e. Payroll, Journal, Purchases, Sales and
so on.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Register
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□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown
The F12:Configuration options in Attendance Register are as displayed below:
Tally.ERP 9 allows you to drill down to the voucher register, from the Attendance Register screen
for any kind of verification.
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You may further drill down to voucher level, by pressing Enter on the required transaction.
Expat Reports
Expat Reports provide information about regular as well as contractual employees, working
abroad on a short/ long tenure or on assignment. They capture all the relevant information in
respect of passport, visa and contract details along with the date of joining, the issuing country
and the expiry date. In Tally.ERP 9, the following Expat reports are available.
□ Passport Expiry
□ Visa Expiry
□ Contract Expiry
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Passport Expiry
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□ Show All Employees – Set this option to Yes, to view the passport
details of all employees. It includes information on expired and unex-
pired passport details. If this option is set to No, Show Expiry in days will
be available.
□ Show Expiry in days – Set this option to Yes, to enter the expiry days.
When Show All Employees and Show Expiry in days options are set
to No, Tally.ERP 9 filters only those employee passport details, which
are nearing the expiry date. If this option is set to Yes, Expiry in next n
days will be available.
□ Expiry in next n days – Set this option to Yes, to get the passport
expiry details for the next specified number of days. On entering the
number of days, Tally.ERP 9 filters the employee passport details which
are likely to expire within the specified period (number of specified days).
If this option is left blank, the report will denote the current date (last date
of voucher entry).
□ Show Employee Number – Set this option to Yes, to display the
employee number of employees in the report.
□ Appearance of Names – Select the appropriate name style to appear in
the Passport Expiry Report (Alias (Name), Alias only, Name (Alias),
Name only).
□ Sorting Method — Sort employee details based on Employee Number,
Passport Expiry Date (Ascending/Descending), or by the default
method.
□ Show Employee Email Id – Set this option to Yes, to view the email ids
of employees.
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Visa Expiry
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Payroll Reports
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Contract Expiry
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
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Payroll Reports
You can view Payroll Statutory reports either from the Statutory Reports menu or Payroll Reports
menu i.e., Gateway of Tally > Display > Statutory Reports > Payroll Reports or Gateway of
Tally > Display > Payroll Reports > Statutory Reports
In this section, we will generate each of the above mentioned forms / report and understand the
purpose and information to be furnished.
i. PF Computation Report
The PF Computation Report provides the summary of Amount Payable and amount paid in
respect of PF for a given period comprising of Employer Contributions, Employee Deductions and
Employer’s Other charges, if any. To view PF Computation Report, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
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Payroll Reports
The report, by default displays the summary of Employee’s Provident Fund, Employees’ State
Insurance and Professional Tax. You may however configure to display only details of Provident
Fund.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
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To view detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
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You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
ii. Form 5
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a)], a return is
required to be submitted in Form 5 within 15 days of the following month detailing the list of
Employees qualifying for membership to the Employees’ Provident Fund for the First time during
every month.
Form 5 is a monthly Returns to be submitted with the details of any new employee covered under
EPF. In Tally.ERP 9, you can generate Form 5 in the prescribed format containing the details of
the new joinees in the organisation for the selected month. To generate the PF Form 5 for the
month of June 2009, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 5
In the Payroll Statutory Print Configuration screen,
□ Specify 01-06-2009 and 30-06-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
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In our case study, there are two new employees who have joined during the month of June 2009
and thus Form 5 contains the details of these employees.
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iii. Form 10
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a) & (b), a Return
is required to be submitted in Form 10 within 15 days of the following month detailing the list of
members leaving service during the month.
Form 10 is a monthly Return to be submitted with the details of employees leaving the organisa-
tion. In Tally.ERP 9, on resignation or retirement or expulsion of any employee, the date of leaving
is required to be specified in the Employee master of such employee. The Date of Leaving option
in the Employee Master is available in the alteration mode. Form 10 contains the details of
Employees for whom the date of leaving is specified in the Employee Master.
You can generate Form 10 in the prescribed format containing the details of the employees who
have resigned in the selected month. To generate the PF Form 10 for the month of August 2009,
follow the steps given below.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 10
In the Payroll Statutory Print Configuration screen
□ Specify 01-09-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
□ Specify 30-09-2009 in the Date field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 12A
In the Payroll Statutory Print Configuration screen
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Specify the Name & Address of the Bank
□ Set Include VPF Account to No
□ Specify 2 in the Number of Contract Employees field
□ Press Enter to accept 0 in Number of Rest (Temporary Employees) field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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v. PF Monthly Statement
The PF Monthly Statement provides a summary of Employee wise monthly PF Employee Deduc-
tions and Employer Contribution amounts. To print the PF Monthly Statement, follow the steps
given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Monthly Statement
In the Payroll Statutory Print Configuration screen,
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
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vi. Form 3A
As per the Employees' Provident Funds Scheme,1952 [para 35 & 42] and the Employees'
Pension Scheme 1995 (Para 19), a Form (Member’s Annual Contribution Card) showing month
wise recoveries towards EPF and Pension Fund in respect of a member for one financial year is
required to be furnished by the employer before 30th April of the following year.
Form 3A is a annual contribution card to be furnished for each employee in separate sheets to
EPFO. To print Form 3A, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 3A
In the Payroll Statutory Print Configuration screen
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Specify 28-02-2010 in the Date of Printing field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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The next page will contain the Contribution Card in Form 3A for the next employee.
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vii. Form 6A
As per the Employees' Provident Funds Scheme,1952 [para 43] and the Employees' Pension
Scheme 1975 [para 20], a Form (Consolidated Annual Contribution Statement) providing annual
contributions of each member of the establishment is required to be submitted by 30th April.
Form 6A is a vital form for compiling the annual Provident Fund statement of a subscriber. In
Tally.ERP 9, you can generate Form 6A in the prescribed format. To print Form 6A, follow the
steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 6A
In the Payroll Statutory Print Configuration screen
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
E-Return
□ Press Backspace and specify the details as shown:
The Out File Name can be changed with the .dbf extension to by default
export the form in the required format. Or the Form can be exported in the
Excel Format and renamed by changing the extension as .dfb.
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
The report, by default displays summary of Employee’s Provident Fund, Employee’s State
Insurance and Professional Tax, you may however configure to display only details of Employee
State Insurance.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
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Payroll Reports
To view the detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
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Payroll Reports
You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 3
In the Payroll Statutory Print Configuration screen,
□ Specify 1-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Select All Items in the field Gender
□ Type Bangalore in the Place field
□ Specify 31-08-2009 in the Date of Printing field
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□ Type the Designation details of the person submitting the declaration form
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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The printed ESI Monthly Statement for August 2009 is displayed as shown:
iv. Form 5
As per Regulation 26, a Return of Contribution in Form 5 is required to be submitted to the appro-
priate Branch Office within 42 days of the expiry of the contribution period (i.e, 12th May or
November 11th of each year). Such return of contribution should be prepared in quadruplicate
and submitted separately for the main Code Number and each sub-code number.
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The employer may make compliance from the parent unit and submit only one return in respect of
all the branches or may make compliance through their Branch Offices/ Sales Offices separately
in the Regions where such offices are located.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 5
In the Payroll Statutory Print Configuration screen
□ Specify 01-04-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Specify Bangalore in the Place Field
□ Specify 30-09-2009 in the Date of Printing field
□ Type the name of the Signatory in the Authorised Signatory Name field
□ Type the Designation details of the signing authority
□ In the Residential Address field provide the Home Address of Authorised Signatory
The completed Payroll Statutory Print Configuration screen for ESI Monthly Statement is
displayed as shown:
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v. ESI Form 6
As per Regulation 32, a register of Employees covered under Employees State Insurance
Scheme, containing information regarding the Insurance No., dispensary, other occupational
details, Employer’s Share and month wise (under that particular Half Year) ESI details (i.e., Gross
wages, Number of working days and ESI Contribution for each employee) should be furnished. To
generate Form 6, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 6
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Payroll Reports
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Computation Report
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Type Bangalore in the Place field
■ Specify 31-08-2009 in the Date of Printing field
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Payroll Reports
The printed Professional Tax Computation report for the month of August 2009 will appear as
shown:
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Statement
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Select Employee Name as the Sorting Method
The completed Payroll Statutory Print Configuration screen will appear as shown:
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Payroll Reports
The printed Professional Tax Statement for August 2009 is displayed as shown:
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Payroll Reports
You can view PT Computation Report from Gateway of Tally > Display >
Payroll Reports > Statutory Reports > Computation menu, detailing Pro-
fessional Tax collected and paid during a given period in the manner as
discussed in Provident Fund Computation Report section.
Gratuity Report
The Gratuity Report displays the provisional liability of an employer towards his employee in
respect of gratuity payable at the time of cessation of employment either by resignation, death,
retirement or termination.
The Gratuity Summary Report displays the gratuity amount payable in accordance with the pay
components and formulae defined in the ledger master, as discussed earlier. In Tally.ERP 9, the
Gratuity amount is calculated proportionately for eligible days in a year to the extent of completed
months of service.
You can view the Gratuity Report either from Statutory Reports menu or Payroll Reports menu i.e.,
Gateway of Tally > Display > Payroll Reports > Statutory Reports or Gateway of Tally >
Display > Statutory Reports > Payroll Reports.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Gratuity Report
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Payroll Reports
The Gratuity Report for the Employees eligible for Gratuity is displayed as shown:
The above report displays the Gratuity Amount computed for each month for each Employee.
In order to ascertain the Gratuity payable amount, set Use for Gratuity to
Yes in the Pay Head master (i.e. Basic Pay, Dearness Allowance etc.)
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The above report displays the details of all employees along with the Date of Birth, Date of Joining
and the Gratuity Eligible Salary, besides commenting on the total Gratuity liability as on date.
Tally.ERP 9 allows you to drill down to the Gratuity Details report from the above display.
□ Select the required employee and press Enter
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Payroll Reports
Once the employee is deactivated (i.e., when the date of leaving is filled in the
Employee master), Tally.ERP 9 stops computing Gratuity for the deactivated
employee. If the tenure of service of such an employee falls below the eligible
slab for gratuity calculation, he/she will not be entitled for any gratuity amount.
However, in cases where the tenure of service is spread over more than one
eligible slab(s), he/she will be entitled to the sum total of all the slabs.
The above report displays the detailed Gratuity computation for all the slabs entered during the
Gratuity Pay Head Creation.
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Implementation of
Payroll in Tally.ERP 9
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Introduction ............................................................................................................................................................................... 1
i
Contents
ii
Introduction
The term Payroll refers to a series of accounting transactions involved in the process of paying
employees for the services rendered after taking all the statutory and non-statutory deductions
into account, in conformance with the terms of employment, company policy and the law of the
land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions.
An efficient payroll system facilitates an error-free, accurate and timely employee payment while
ensuring that the employment is well within the valid work permit.
Lesson 1: Configuring Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt:
Payroll in Tally.ERP 9 is easy to use and can handle all the functional, accounting and statutory
requirements of the payroll department.
2
□ It facilitates an accurate computation and deduction of ESI, EPF, Professional Tax, Gratuity
etc.
□ It helps in the generation of Statutory Forms & Challans for EPF & ESI, as prescribed.
□ It allows to drill-down to voucher level for any kind of alteration.
□ It facilitates computation of arrears pertaining to prior period(s).
□ It helps in tracking employee loan details.
The option More than ONE Payroll / Cost Category is set to Yes, when
separate cost categories are created to allocate Employee cost. In cases,
where only one cost category i.e., primary cost category is used to allocate
multiple cost centres, this option may be set to No.
Once the Payroll feature is activated in Tally.ERP 9, the following two new options get activated in
the F11: Statutory & Taxation Master
5
Configuring Payroll in Tally.ERP 9
□ Press Enter
6
Configuring Payroll in Tally.ERP 9
Provident Fund
Company Code: This field denotes the Provident Fund Code of the Com-
pany allotted by the Department.
Company Account Group Code: This field denotes the Provident Fund
Group Code of the Company allotted by the Department.
Company Security Code: This field denotes the Security Code of the Com-
pany allotted by the Department.
Employee State Insurance
Company Code: This field denotes the ESI Code of the Company allotted by
the Department.
ESI Branch Office: This field denotes the nearest ESI office under whose
jurisdiction, the company is situated.
Standard Working days (per month): This field denotes the consistent Pay
Period to be considered for ESI Calculation. If this field is left blank, the calcu-
lation is done based on the Calendar days in each month.
□ Press Enter to Accept the screen and go back to F11: Statutory & Taxation Features
screen
□ Press Ctrl+A to Accept the screen.
7
Lesson 2: Creation of Payroll Masters
Lesson Objectives
On completion of this lesson, you will have learnt how to:
7
Creation of Payroll Masters
The Payroll feature in Tally.ERP 9 requires minimal effort for accurate payroll processing. It takes
five easy steps to process payroll & generate Pay Slip in Tally.ERP 9.
Essentially, Payroll involves the calculation of amounts due for an employee on the following
basis:
□ Pay on Hourly wages
□ Pay on a fixed basis such as certain amount per week, per month and so on
□ Pay to sales persons on commission
□ Reimbursement of expenses such as travel expenses, either as paid by the employee or
based on per item rate
□ Pay on the basis of number of pieces produced/ manufactured/ sold
It is therefore essential to quantify the following payroll information for the purpose of computation
of payments to employees. For this purpose, the following Payroll masters have to be created in
Tally.ERP 9 in the manner as discussed:
□ Employee Masters
□ Payroll Masters
□ Pay Heads
8
Creation of Payroll Masters
□ Salary Details
Employee Setup
The Employee Master records employee information – department, date of joining, date of
leaving, ID number, designation, location, function, employee bank details, statutory details,
Passport and Visa details, and so on.
Tally.ERP 9 provides the flexibility to create the Employees and Group them under specific
Employee Group which in turn can be created under specific Employee Categories.
The following masters can be created in Tally.ERP 9 to successfully record the Employee Details:
□ Employee Category
□ Employee Groups
□ Employees
Employee Groups
Businesses with multiple departments, divisions, functions or activities may create the required
employee groups and classify individual employees under a specified group i.e., Production,
Sales, Marketing, Stores, Support or a particular group of employees such as managers, supervi-
sors, sub-staff and so on.
9
Creation of Payroll Masters
Similarly, create the other Employee Groups such as Administration and R&D.
Employee Master
After creating the Employee Groups, create individual Employee Masters, with or without
grouping them, under the Employee Group Master.
In Tally.ERP 9, you can record all the necessary information of the employees in the Employee
Masters. Tally.ERP 9 also allows you to enter the Statutory, Expat and Contract details of the
employees.
To display the options for entering the Statutory, Expat and Contract details enable these options
from the Company Configuration screen as explained below:
Go to Gateway of Tally > F12:Configure > Payroll Configuration
Set the following options:
□ Show Statutory Details to Yes
□ Show Passport & Visa Details to Yes
□ Show Contact Details to Yes
10
Creation of Payroll Masters
11
Creation of Payroll Masters
The option Date of Leaving and Reason for Leaving will be available only in
the Alteration mode.
Similarly, create the Employee Masters for other employees with their respective departments.
Payroll Masters
As discussed in the above section Pay components are computed based on the Payroll Units.
Therefore, create the following Payroll masters in Tally.ERP 9:
□ Payroll Units
□ Attendance / Production Types
Payroll Units
A payroll unit refers to a unit of measurement based on which pay heads are calculated. Payroll
units can be classified into two types viz., Simple Payroll Units and Compound Payroll Units.
Simple Payroll Units refer to individual units such as Day, Week, Month, Hours, Pcs, Box, Nos
etc., Whereas, Compound Payroll Units refer to Units which are combination of two simple units,
i.e., an Hour of 60 Minutes, Month of 26 days, Day of 8 Hrs.
Usually, the Pay components are computed based on a single or compound payroll units.
Sometimes an employee may be paid on the basis of a combination of two or more units. For
12
Creation of Payroll Masters
example, an employee is paid a regular salary and an hourly rate for the overtime hours. In this
case, the two likely units are Calendar Month and Hours. In Tally.ERP, you can create simple as
well as compound units.
By default, Tally.ERP 9 contains four preset Calculation Periods – Days, Fortnights, Months &
Weeks. However, you can also create new Payroll Units based on your business requirements.
Name Type Symbol
Hours Simple Hrs
Minutes Simple Mins
Hrs of 60 Mins Compound Hrs of 60 Mins
Go to Gateway of Tally > Payroll Info. > Units (Work) > Create
In the Unit Creation screen,
1. Simple is defaulted as the Type of Unit
2. Specify Hrs as the Symbol
3. Type Hours as the Formal Name
4. Specify 2 as the Number of Decimal Places
13
Creation of Payroll Masters
Types of Units:
□ Simple Units are individual units with no relationship with other units
i.e., Hrs, Nos, Pieces and so on.
□ Compound Units are a combination of two simple units, where the two
units have an arithmetical relationship with each other. For example, an
Hour of 60 Minutes.
Create the following Attendance Types for M/s. Spectrum Software Solutions.
Name Under Attendance/Production Type Period Type
Present Primary Attendance/ Leave with Pay Days
Absent Primary Leave without Pay Days
Overtime Primary Production Hrs of 60 Mins
14
Creation of Payroll Masters
3. Select Attendance/ Leave with Pay as the Attendance Type and the Period Type appears
as Days, by default.
15
Creation of Payroll Masters
In the same way, create Overtime as the Production Type with Production as the Attendance
Type.
Pay Heads
Pay Heads may be broadly considered as Earnings and Deductions from an employee’s point of
view. However, these pay heads would still be Expense and Liability from the employer’s view
point.
Some examples of Earnings Pay Heads are Basic Salary, Dearness Allowance, City Compensa-
tory Allowance, House Rent Allowance, Night Shift Allowance, Uniform Allowance, Sales Com-
mission and so on. Some examples of Deductions pay heads are Employees’ Provident Fund
(EPF), Employees’ State Insurance (ESI), Professional Tax, Income Tax, TDS, Advance (if any).
In Tally.ERP 9, each pay head is to be created as an individual ledger account and grouped under
its respective group i.e., all Earnings pay heads under Indirect Expenses group or Direct
16
Creation of Payroll Masters
Expenses group and all Deductions pay heads under Current Liabilities, Current Assets and
Duties & Taxes group.
Create the following pay heads in the books of M/s. Spectrum Software Solutions.
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
In the Pay Heads Creation screen,
17
Creation of Payroll Masters
Figure 2.11 Basic Pay Head Creation – Pay Head Type Selection
3. Specify the group as Indirect Expenses in the field Under and press Enter
4. Set Affect Net Salary to Yes
5. Specify Basic in the field Name to appear in Pay Slip
6. Set Use for Gratuity to Yes
7. Select On Attendance in the field Calculation Type and press Enter
18
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation is displayed as shown:
As Computed Value – This method is used when the pay value is computed
based on certain predefined factors i.e., slab rates, pay heads and so on.
As User-Defined Value – This method is used when the value of pay is not
fixed and does not depend upon any pay components.
Flat Rate – This method is used when the value of the pay heads is fixed for
the given month. This calculation type is not dependant upon attendance/pro-
duction. For example, conveyance of Rs. 800 per month.
On Attendance — This calculation type depends upon Attendance records
and is used along with rate per unit of attendance. For example, Overtime of
Rs. 25 per hour.
On Production — This method is used when the pay value is measured
based on work done i.e., pieces or numbers produced/manufactured.
19
Creation of Payroll Masters
The Pay Head Creation screen with the List of Attendance Types is displayed as shown below:
Figure 2.13 Pay Head Creation screen with List of Attendance Types
If the user intends to record Negative Attendance viz., Absent (i.e if the pay
value is measured on the basis of negative attendance units), select Not
Applicable in the Attendance/ Leave with Pay field and press Enter & then
select Absent in the Leave without Pay field. In the above example we are
selecting Positive Attendance unit i.e Present.
20
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation Periods is displayed as shown:
21
Creation of Payroll Masters
10. Select User defined in the Per Day Calculation Basis field
22
Creation of Payroll Masters
13. Select Normal Rounding as the Rounding Method and press Enter.
23
Creation of Payroll Masters
14. Specify 1 as the rounding Limit (The Rounding limit allows the value to be in multiples of the
limit specified and is based on the Rounding Method selected)
24
Creation of Payroll Masters
Figure 2.19 HRA Pay Head Creation screen - Calculation Type selection
8. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
25
Creation of Payroll Masters
9. In the Computation Info screen, select On Specified Formula in the Compute field
Computation on details:
On Current Deductions Total – This calculation type is used when the value
of a pay head depends upon the total of the deductions pay heads previously
defined.
On Current Earnings Total – This calculation type is used when the value of
a pay head depends upon the total earnings pay heads previously defined.
On Current Sub Total – This calculation type is used when the value of a
pay head depends upon the net totals of earnings and deductions previously
defined.
On Specified Formula – This calculation type is used when the pay head
value is computed on the value of one or more pay heads already defined in
the pay structure. (Tally.ERP 9 allows the addition and subtraction of pay
heads already defined in the pay structure and multiplication and divisions
using attendance types. For example, HRA is computed as 40% of the basic
salary.)
26
Creation of Payroll Masters
The pay head drop-down box contains pay heads already created. If any pay head(s) is a
component for the given Pay Head, you may create the required Pay Head by pressing Alt+C
from the above Pay Head field and make the necessary alterations in the required pay head.
27
Creation of Payroll Masters
28
Creation of Payroll Masters
14. Select Percentage as the Slab Type from the List of Slabs
29
Creation of Payroll Masters
15. Specify 40% in the Value Basis field and press Enter
The completed House Rent Allowance (HRA) Pay Head Creation screen is displayed as
shown.
30
Creation of Payroll Masters
31
Creation of Payroll Masters
32
Creation of Payroll Masters
Pay Head Pay Head Statutory Under Affect Name to Calcula- Computation
Name Type Pay Type Net Appear in tion Type Method
Salary Pay Slip
Employees’ Employees’ PF Current Yes EPF @ 12% As On
PF Contribu- Statutory Account Liabilities Computed Specified For-
tion @ 12% Deductions (A/c No.1) Value mula
Employees’ Employees’ Employee Current Yes ESI @ On Speci- Basic Pay +
ESI Contri- Statutory State Liabilities 1.75% fied For- House Rent
bution @ Deductions Insurance mula Allowance +
1.75% Conveyance +
Overtime Pay
(or Current
Earnings -
Variable Pay)
Profes- Employees’ Profes- Current Yes Profession As On Current
sional Tax Statutory sional Tax Liabilities Tax Computed Earnings Total
Deductions Value
33
Creation of Payroll Masters
34
Creation of Payroll Masters
3. Select PF Account (A/c No. 1) in the Statutory Pay Type field as shown:
4. Specify the group as Current Liabilities in the field ‘Under’ and press Enter (In Tally.ERP 9,
only relevant groups appear during selection, to reduce erroneous data inputs)
5. Set Affect Net Salary to Yes
6. Specify EPF @ 12% in the field Name to appear in Pay Slip
7. As Computed Value appears in the field Calculation Type by default
8. Select Normal Rounding as the Rounding Method. Specify 1 as the rounding Limit and
press Enter
9. Select On Specified Formula as the Compute method and press Enter
35
Creation of Payroll Masters
10. In the Compute sub-screen, select Basic Pay as the Add Pay Head function and press
Enter
36
Creation of Payroll Masters
14. Specify 6500 in the Amount Upto column and press Enter
15. Select Percentage as the Slab Type from the List of Slabs
16. Specify 12% as the Value Basis Percentage and press Enter (the From Amount is defaulted
as 6500)
17. Press Enter to accept the upper level as 0 and select Value as the Slab Type from the List of
Slabs
37
Creation of Payroll Masters
18. Specify Rs. 780 in the Value Basis field and then press Enter
Figure 2.33 Deduction Pay Head Creation screen with Value Basis
38
Creation of Payroll Masters
The completed Employee’s PF Contribution @ 12% Pay Head Creation screen is displayed as
shown:
39
Creation of Payroll Masters
Figure 2.35 Employee's ESI Pay Head creation screen - Compute On Selection
40
Creation of Payroll Masters
■ Similarly, select Conveyance and Overtime Pay as the Add Pay Head function
Figure 2.36 Employee's ESI Pay Head creation screen - Add Pay Head selection
Any income of a regular nature will be subject to ESI calculation viz., Basic
Pay, Dearness Allowance, House Rent Allowance, Conveyance, Overtime
etc.,)
41
Creation of Payroll Masters
Figure 2.37 Employee's ESI Pay Head creation screen – Slab Rate
42
Creation of Payroll Masters
The completed ESI – Employee’s Contribution Pay Head Creation screen is displayed as
shown:
Figure 2.38 Completed ESI – Employee’s Contribution Pay Head Creation screen
43
Creation of Payroll Masters
The completed Professional Tax Pay Head Creation screen is displayed as shown:
44
Creation of Payroll Masters
* Eligible salary refers to the sum of pay heads covered in the employee’s
latest pay structure, for the relevant period. The pay heads must be set to Yes
for Use for gratuity and the Gratuity ledger should be part of the pay struc-
ture.
# Served period is computed from the date of joining to the end date of cal-
culation period. Served period may be proportionate such as 11 years 10
months and 5 days.
When Served period covers more than one slab, the total of the calculations
of all the slabs will constitute the gratuity provisional amount of the employee.
45
Creation of Payroll Masters
The Slab Rate Details for Gratuity calculation screen is displayed as shown:
46
Creation of Payroll Masters
The completed Gratuity Expenses (Provisional) Pay Head Creation screen is displayed as
shown:
47
Creation of Payroll Masters
1. Select Vijay Kumar from the List of Employees and press Enter
In the Salary Details screen,
□ The Effective date is entered as 01-04-2009 by default based on the Date of Joining
entered in the Employee Master
□ Select Basic Pay as the Pay Head from the List of Pay Heads
□ Specify 10,000 as Rate
□ The Attendance units, Pay Head Type and Calculation Type appear by default, based
on the pay head definitions.
48
Creation of Payroll Masters
2. Select House Rent Allowance as the second Pay Head and press Enter
3. Select Conveyance as the next Pay Head
4. Specify 800 as Rate and press Enter
5. Select Overtime Pay as the Pay Head
6. Specify 55 as the Rate and press Enter
7. Select Variable Pay as the Pay Head and press Enter
8. Select Professional Tax against the Pay Head and press Enter
9. Select Employee’s PF Contribution @ 12%, Employee’s ESI Contribution @ 1.75% as Pay
Head and press Enter
10. Select the Gratuity Expenses (Provisional) ledger and press Enter (In case of Employees
eligible for Gratuity, the Gratuity Expenses ledger should be included in the Salary details of
the respective Employee for provisional assessment of Gratuity)
49
Creation of Payroll Masters
The completed Salary Details Creation screen for Mr. Vijay Kumar is displayed as shown:
Tally.ERP 9 allows you to modify the pre-defined Slab rates by pressing F12:
Configure and setting the option Allow to Override Slab Percentage to
Yes.
50
Creation of Payroll Masters
Similarly, create the pay structure for the other employees as per the details given in the following
table:
Pay Head Rahul Mahesh Ajay
Basic Pay 20,000 45,000 10,000
House Rent Allowance 40% 40% 20%
Conveyance — 1,000 2,000
Overtime Pay — — 100
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable as Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable as Slab Rates
Professional Tax Applicable as Slab Rates
Salary Details for Ajay can be created similar to the Salary Details creation for Vijay Kumar.
Since Ajay and Mahesh are in Sales Group, we can create the Salary Details for the Group and
inherit the same for the Employees (Ajay and Mahesh) in that Group.
51
Creation of Payroll Masters
The Pay structure created above can be inherited for all the employees belonging to Sales Group.
This feature helps in eliminating the repetitions while creating the Salary Details.
To define the Salary Details for Mr. Ajay belonging to Sales Group, follow the steps given below:
Go to Gateway of Tally > Payroll Info. > Salary Details > Create
1. From the List of Group / Employees select Ajay and press Enter
2. Select Copy From parent Value from the Start Type options under Pay Head
52
Creation of Payroll Masters
3. The Pay Structure (comprising of Earning & Deductions pay heads) defined for the Group is
prefilled automatically.
4. Enter the values for each Pay Head for Ajay as per the details mentioned earlier.
5. Press F12: Configure
■ Set the option Allow to Override Slab Percentage to Yes, since the HRA calculation
percentage is 20%.
53
Creation of Payroll Masters
54
Creation of Payroll Masters
Similarly, you can create the Salary Details for Mahesh and others employees.
55
Lesson 3: Processing Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt
There are three types of Payroll Vouchers namely Attendance Voucher, Payroll Voucher and
Payment Voucher, which are by default preset in Tally.ERP 9 to record above Payroll transac-
tions.
Payroll Vouchers are used for the purposes of operating your payroll and also records the attend-
ance of the employees for a given period. These vouchers are basically used to input information
pertaining to Payroll processing.
.
Attendance Vouchers
An Attendance Voucher is used to record employees’ attendance data, based on Attendance/
Production types (i.e., present or absent days, overtime hours and so on).
An Attendance Voucher allows you to record the attendance/ production units for employees.
Tally.ERP 9 gives you the flexibility to enter the attendance records through a single attendance
voucher for a payroll period, or through multiple attendance vouchers as and when required within
a payroll period. You also have the option of recording one attendance/ production voucher per
employee per day or collectively for a month or any other variation thereof for all the employees.
In Tally.ERP 9, the auto-fill facility (Alt+A) is used to prefill the required Attendance/Production
types data for the selected employee group/ employee for the specified period.
56
Processing Payroll in Tally.ERP 9
Example 1:
On 30th April, 2009 the attendance records of M/s. Spectrum Solutions displayed the
following details:
Attendance/ Produc- Vijay Kumar Rahul Mahesh Ajay
tion Types
Present Days 26 22 15 17
Overtime hours 900 Min 720 Min
(15hr x 60min) (12hr x 60min)
In the above scenario, separate attendance vouchers are required to be entered for recording
Present days and Overtime hours.
57
Processing Payroll in Tally.ERP 9
■ Select All Items as Employee/ Group (if you want to generate payroll voucher for indi-
vidual employee/ group, select the respective employee or group)
58
Processing Payroll in Tally.ERP 9
The Attendance Auto Fill with Employee Filters screen is displayed as shown:
■ Specify the require value that should be prefilled for all Employees e.g. 26
■ Press Enter to accept the screen
59
Processing Payroll in Tally.ERP 9
60
Processing Payroll in Tally.ERP 9
The Attendance Voucher Creation screen with the attendance details screen is displayed as
shown:
7. Press Enter
8. Enter the details of the transaction in the Narration field
61
Processing Payroll in Tally.ERP 9
The completed Attendance Voucher Creation for Present Attendance is displayed as shown:
Days with Loss of Pay (LOP) are treated as a Deductible with respect to the
Earnings Pay Head type and as a Payable with respect to the Deductions
Pay Head type. For example, LOP is deducted from the Basic salary
(Earnings Pay Head) and Canteen expenses (Deductions Pay Head) are
treated as a payable.
62
Processing Payroll in Tally.ERP 9
You can also record Overtime in hours, provided the Unit of Measurement for
the Payroll unit is defined as Hrs.
After creating the Attendance Voucher, you can change any attendance value for a particular
employee, if required, in the Voucher Alteration mode.
63
Processing Payroll in Tally.ERP 9
Payroll Vouchers
A payroll voucher is used to record all employee-related transactions. It enables you to compute
all the values for the respective Pay Heads (Earnings and Deductions).
The calculations are made on the basis of the definitions specified in the pay head masters, pay
structure and attendance entries. In Tally.ERP 9, you can pass payroll vouchers manually for indi-
vidual employee as well as for the entire group/ organisation by using the Auto Fill facility (Alt+A).
In Tally.ERP 9, the disbursement of salaries can be effected in any of the following modes.
□ Direct Remittance – in cash or by cheque
□ Bank Transfer – a direct transfer is made to an employee’s bank account and the list of
disbursement is printed separately
Cash Remittance
Example 2:
On 30th April, 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
64
Processing Payroll in Tally.ERP 9
65
Processing Payroll in Tally.ERP 9
All the pay values are calculated for the applicable pay heads for each employee grouped under
the selected group.
66
Processing Payroll in Tally.ERP 9
4. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee (in this case, define the Variable Pay)
67
Processing Payroll in Tally.ERP 9
■ Similarly, specify 1500 as Variable Pay for Vijay Kumar and press Enter
68
Processing Payroll in Tally.ERP 9
Press Alt+S to pass the above voucher in the Voucher mode. This can be
used to keep track of Bill References. e.g. if there are more than one Salary
Advances, then the to track the recovered Amount from Employee’s salary
against the respective Advance given, this feature should be used.
Bank Transfer
Bank transfer refers to disbursement of Salaries directly into the Employee Bank Accounts by inti-
mating the Bank through a Payment advice. Tally.ERP 9 facilitates processing salaries through
Bank transfer with the help of predefined Salary process.
Example 3:
On 31st May, 2009 M/s. Spectrum Solutions disbursed Salaries payable for the month of
May 2009 through Bank Transfer. The attendance records displayed the following details:
69
Processing Payroll in Tally.ERP 9
On 31st May 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
Particulars Vijay Kumar Rahul Mahesh Ajay
Variable Pay 500 - 1200
70
Processing Payroll in Tally.ERP 9
71
Processing Payroll in Tally.ERP 9
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
The completed Salary Payable Ledger creation screen is displayed as shown:
72
Processing Payroll in Tally.ERP 9
9. Press Enter (All the pay values are calculated for the applicable pay heads for each employee
grouped under the selected group).
10. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee
■ Specify 1200 as Variable Pay for Ajay
■ Specify 500 as Variable Pay for Vijay Kumar
The completed Payroll Voucher for the month of May 2009 is displayed as shown:
73
Processing Payroll in Tally.ERP 9
After passing the above entry, the salaries payable for the month of May 2009 are transferred to
the Salary Payable Ledger, at the time of payment of salaries, the amount is reversed.
Example 4:
On 31st May 2009, M/s. Spectrum Solutions paid the salaries due for the month of May
2009.
Before passing the payment voucher, necessary Bank Accounts should be created. To make the
Salary payment, follow the steps given below:
74
Processing Payroll in Tally.ERP 9
4. Press Enter and the employee payroll details will appear by default.
5. Enter the details of the transactions in the Narration field
75
Processing Payroll in Tally.ERP 9
The unpaid salary will remain as outstanding in the Salary payable account and can be auto-filled
in the payment voucher as and when the actual payments are made.
□ If any cash disbursements are made prior to the payment voucher entry,
after using the Auto-Fill facility, select the unpaid salaries and enter zero
(0) in the amount payable.
□ If salaries are disbursed by cheque, select individual employee in the
Auto Fill Employee Filter and print the cheque for the payment voucher.
You have to create separate payroll payment entries for each employee.
76
Lesson 4: Accounting for Employer PF
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
The Employees' Provident Funds and Miscellaneous Provisions Act is a social security legislation
which administers provident fund, family pension and insurance to employees. The Act covers
three schemes, namely; PF (Provident Fund scheme), EPS (Employees’ Pension Fund Scheme),
EDLI (Employees Deposit Linked Insurance scheme).
Under the Employees’ Provident Fund scheme, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance, cash value of food conces-
sion and retaining allowance (if any), payable to employees per month. The contribution rate is
10% in the case of the following establishments:
□ Any covered establishment with less than 20 employees
□ Any sick industrial company as specified in the relevant section of Sick Industrial Compa-
nies (Special Provisions) Act, 1985 and which has been declared as such by the Board for
Industrial and Financial Reconstruction
□ Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and
□ Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar
gum Industries/ Factories.
The Contribution payable by the Employer is not to be deducted from the wages of the employee.
However, the employer has to deduct employee's share from their Salaries and pay the same in
EPF scheme. The deduction can be made only from the wages pertaining to a period for which
contribution is paid. However, if there is an accidental omission, the amount can be recovered
later.
77
Accounting for Employer PF Contributions
Out of the employer's contribution of 12% or 10%, the Employer's contribution of 8.33% is
diverted to Employees' Pension Scheme and the balance is retained in the EPF scheme. On
retirement, the employee gets his full share plus the balance of Employer's share retained to his
credit in the EPF account.
Once an establishment is covered under PF, all its departments and branches are covered, irre-
spective of where they are located.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Provident Fund.
78
Accounting for Employer PF Contributions
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions processed Provident Fund contribu-
tions for the month of April 2009 and paid the amount in full to EPFO.
79
Accounting for Employer PF Contributions
3. In the field Statutory Pay Type, select EPS Account (A/c No. 10) as shown
4. Specify the Group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. By default the Calculation Type is set to As Computed Value and Calculation Period as
Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
□ In the Computation Info section,
■ Select On Specified Formula in the Compute field
■ Press Enter, the Compute subscreen appears
■ In the Compute Sub screen,
80
Accounting for Employer PF Contributions
■ Select Basic Pay as the Add Pay Head function from the list of Pay Heads as shown.
81
Accounting for Employer PF Contributions
The completed Employer EPS @ 8.33% Pay Head Creation screen is displayed as shown:
82
Accounting for Employer PF Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
8. In the Computation Info section,
□ Select On Specified Formula in the Compute field
□ Press Enter and the Compute On subscreen displays
□ In the Compute sub-screen,
■ Select Employee’s PF Contribution @ 12% from the List of Pay Heads as the Add
Pay Head function and press Enter
■ Select Subtract Pay Head in Function and under Pay Head select Employer EPS @
8.33% from the List of Pay Heads.
83
Accounting for Employer PF Contributions
84
Accounting for Employer PF Contributions
The completed Employer EPF @ 3.67% Pay Head Creation screen is displayed as shown:
Alternatively, you can also define the criteria for computation of Employer PF
Contribution @ 3.67% Pay head, by selecting Basic Pay in the Compute sub-
screen. and defining the percentage as 3.67%.
85
Accounting for Employer PF Contributions
4. Specify the group as Current Liabilities in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. The Rounding Method is defaulted to Normal Rounding and 1 defaulted as the rounding
Limit
8. In the Computation Info section,
□ On PF Gross is selected automatically in the Compute field
□ Specify 1-4-2009 as the Effective From date
□ Specify 6500 in the Amount Upto column
□ Select Percentage as the Slab Type and specify 1.10% in the Value Basis field and press
Enter
86
Accounting for Employer PF Contributions
The completed PF Admin Charges @ 1.10% Pay Head Creation screen is displayed as shown:
87
Accounting for Employer PF Contributions
3. In Statutory Pay Type filed select EDLI Contribution (A/c No. 21) as shown
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ In the Compute field, On PF Gross is selected by default.
□ Specify 1-4-2009 as the Effective From date (In case of a revision in pay structure, you
can define the revised computation information for the given pay head, by giving the effec-
tive from date)
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column.
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.5% in the Value Basis field and press Enter
88
Accounting for Employer PF Contributions
The completed EDLI Contribution @ 0.5% Pay Head Creation screen is displayed as shown:
89
Accounting for Employer PF Contributions
■ Set Minimum Rs 2/Employee to Yes if you want the EDLI Admin Charges to be mini-
mum Rs. 2.
When the option Minimum Rs 2/Employee is set to Yes, the EDLI Admin
Charges for each employee is minimum Rs. 2 or actual value as calculated.
When this option is set to No the EDLI Admin Charges are calculated as per
the specified formula.
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ On PF Gross is selected in the Compute field, by default
□ Specify 1-4-2009 as the Effective From date
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.01% in the Value Basis field and press Enter
90
Accounting for Employer PF Contributions
The completed EDLI Admin Charges @ 0.01% Pay Head Creation screen is displayed as
shown:
91
Accounting for Employer PF Contributions
92
Accounting for Employer PF Contributions
93
Accounting for Employer PF Contributions
Similarly, include Employee Contribution Pay Heads in the Salary Details Masters of other
employees.
□ It is necessary to include Employer Contribution Pay Heads (i.e.,
Employer PF and Employer Pension Fund Pay Heads in the Salary
Structure of the Employee, to automate the Computation of Employer
PF Contribution on the basis of payments made to Employees.
□ While, including the Employer Contribution Pay Heads in the Salary
Details master, the order of precedence in which the Pay Heads are
included must on the basis of their calculation criteria i.e.,
i. Earning Pay Heads
ii. Deduction Pay Heads
iii. Professional Tax or Income Tax Pay Heads (if any)
iv. Employee PF Contribution Pay Heads
v. Employer PF Contribution Pay Heads
vi. Gratuity (Gratuity is calculated on Basic Pay + DA, hence Gratuity Pay
Head can be sequenced in the Salary details of an Employer in any
order after Earnings Pay Heads).
94
Accounting for Employer PF Contributions
Tally.ERP 9 provides the following predefined processes that will help in process-
ing Payroll transactions:
i. ESI Contribution: This process is selected to automate computation
of Employer ESI Contribution.
ii. PF Contribution: This process is selected to automate computation
of Employer PF Contribution
iii. Salary: This process is selected to automate computation of Salaries
payable to Employees.
■ Specify 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Select Primary Cost Category in the Employee Category field
■ Select All Items as Employee/ Group field (To process, for a particular group /
Employee select the respective Employee / group, as required)
95
Accounting for Employer PF Contributions
■ Select PF Payable Ledger from the list of Ledger Accounts drop down in the Payroll
Ledger field as shown
The values for the Employer PF contributions are prefilled in the Payroll Voucher for PF Contribu-
tion process.
96
Accounting for Employer PF Contributions
97
Accounting for Employer PF Contributions
98
Accounting for Employer PF Contributions
99
Accounting for Employer PF Contributions
■ Select PF Admin Charges @ 1.10% Ledger in the Admin Charges (A/c No. 2) field
as shown
Figure 4.21 Employer’s Other Charges screen – Admin Charges Ledger Selection
■ Similarly, select EDLI Contribution @ 0.5% and EDLI Admin Charges @ 0.01% in
the EDLI Contribution (A/c No. 21) and EDLI Admin Charges (A/c No. 22) fields
respectively.
100
Accounting for Employer PF Contributions
■ Press Enter
4. Type the details of the transaction in the Narration field
101
Accounting for Employer PF Contributions
To process the payment of Provident Fund, follow the steps given below:
102
Accounting for Employer PF Contributions
■ Select PF Challan in the Process for field from the Process List screen
■ Enter 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
■ Select HDFC Bank in the Bank / Cash Ledger field
■ Select PF Payable Ledger in the Payroll Ledger field
4. Press Enter to prefill PF Payable Amount in respect of Employer Contributions during the
relevant month
103
Accounting for Employer PF Contributions
104
Accounting for Employer PF Contributions
5. Press Enter again, to prefill the amount of Employee Contributions during the relevant
month
105
Accounting for Employer PF Contributions
6. Press Enter thrice again, to prefill EDLI Admin Expenses, EDLI Contribution and PF Admin
Charges during the selected month as shown:
106
Accounting for Employer PF Contributions
107
Accounting for Employer PF Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
The printed PF Combined Challan for the month of April 2009 of M/s. Spectrum Software
Solutions is displayed as shown:
108
Lesson 5: Accounting for Employer ESI
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
ESI Contribution refers to the amount payable to the Corporation by the Principal Employer in
respect of Employees and comprises of the amount payable by the employee as well as the
employer.
The employer is required to calculate and remit ESI Contributions comprising of employers' share
and employees' share on or before the 21st of the subsequent month in respect of salaries of the
related month. The Principal Employer should pay the Employer’s share of contribution @ 4.75%
in respect of every employee whether employed directly or through an immediate employer. And
the Employee’s share @ 1.75% has to be recovered by making a deduction from their wages for
the respective salary/wages period.
In case, if the employee is drawing upto Rs. 70/- as daily average wage, he is exempt from
payment of his share of contribution. However, the employer has to pay employer’s share of
4.75% of the Salary payable to the employees.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Employee State Insurance.
109
Accounting for Employer ESI Contributions
Illustration 1:
On 1st June 2009, the list of new joinees with their Salary details are given below:
Employee Name Department Date of Joining
Suresh Administration 1-6-2009
Rajesh Sales 10-6-2009
The Salary details for the above new employees are listed in the table below:
Pay Head Suresh rajesh
Basic Pay 4,500 5000
House Rent Allowance 40% 40%
Conveyance 600 800
Overtime Pay — —
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable based on Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable based on Slab Rates
Profession Tax Applicable based on Slab Rates
The Attendance details for the month of June 2009 are given as shown:
Attendance/ Production Vijay Rahul Mahesh Ajay Suresh Rajesh
Types Kumar
Present Days 26 21 20 22 23 21
Overtime hours 120 Min 600 Min
The Variable Pay details for the month of June 2009 are given as shown:
Particulars Vijay Rahul Mahesh Ajay Suresh Rajesh
Kumar
Variable Pay 0 0 0 0 0 0
110
Accounting for Employer ESI Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
111
Accounting for Employer ESI Contributions
112
Accounting for Employer ESI Contributions
□ Specify 1-4-2009 in the Effective From date field and press Enter, the From Amount col-
umn is automatically skipped, assuming the amount to be zero
□ The Amount Upto field is skipped and automatically defaulted with the amount specified in
the Payroll Statutory Details screen in F11: Satutory & Taxation
□ Select Percentage in the Slab Type field
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
In Tally.ERP 9, the Earning Payheads which are selected for computation of Employer ESI contri-
bution are listed in the Specified Formula for easy reference. You can alter / modify the criteria for
calculation, by pressing Enter in the Compute field and redefining the Function Pay components.
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
□ Press Enter to accept
113
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Pay Head Creation screen is displayed as shown:
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
1. Type ESI Payable in the Name field
2. In the Pay Head Type field select Not Applicable
3. Specify the group as Current Liabilities in the Under field and press Enter
114
Accounting for Employer ESI Contributions
115
Accounting for Employer ESI Contributions
Similarly, include Employer ESI @ 4.75% Pay Head in the Salary details of all other Employees.
116
Accounting for Employer ESI Contributions
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Select Primary Cost Category as Employee Category field
□ Select All Items in the Employee/ Group field
117
Accounting for Employer ESI Contributions
118
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Voucher Creation screen is displayed as shown:
Payment of ESI
In Tally.ERP 9, once the process for Employee and Employer contributions to Employee’s state
Insurance is implemented in the manner as discussed in earlier sections, the total amount
payable to ESIC comprising of Employee’s Contribution as well as Employer’s contribution to ESI
is accumulated separately in the ESI Payable Ledger. At the time of making the payment to ESIC,
a payment voucher is required to be passed.
119
Accounting for Employer ESI Contributions
To process the payment of ESI and generate ESI Challan, follow the steps given below:
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Specify 30-6-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
□ Select Primary Cost Category in the Employee Category field
□ Select All Items in the Employee/ Group field
120
Accounting for Employer ESI Contributions
121
Accounting for Employer ESI Contributions
122
Accounting for Employer ESI Contributions
6. Press Enter to prefill the Employer’s ESI Contribution amount for the eligible Employees
123
Accounting for Employer ESI Contributions
7. Press Enter again, to prefill the Employee’s ESI Contribution amount against the eligible
Employees
Figure 5.14 ESI Payment Voucher with both Employee and Employer Contributions
124
Accounting for Employer ESI Contributions
The completed ESI Payment Voucher for the month of June 2009 is displayed as shown:
125
Accounting for Employer ESI Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
126
Accounting for Employer ESI Contributions
The printed ESI Payment Challan for the month of June 2009 of M/s. Spectrum Software
Solutions is as shown:
127
Lesson 6: Payment of Professional Tax
Lesson Objectives
On completion of this lesson, you will be able to:
Professional Tax is applicable to those individuals or professionals in India who are involved in
any profession or trade. The state government of each state governs and administers the levy and
collection of Professional Tax in the respective State.The state is empowered with the
responsibility of structuring as well as formulating the professional tax criteria for the respective
state. Professional tax is charged on the income of Individuals, profits of business or gains in
vocations as per the list II of the Indian Constitution.
In India, Professional Tax slabs vary from state to state and some of the states have formulated
different professional tax slabs for men, women and senior citizens. The rates depend upon
profession, years in the profession and the amount of income or turnover and so on. In Karnataka,
the professional taxes leviable are as follows:
S.No Salary or wage earners whose salary or wage or Tax Amount
both, as the case may be, for a month is,
(a) Less than Rs.5000 Rs. 0 Per month
(b) Not less than Rs. 5,000 but less than Rs.8,000 Rs. 60 Per month
(c) Not less than Rs.8,000 but less than Rs.10,000 Rs.100 Per month
(d) Not less than Rs.10,000 but less than Rs.15,000 Rs.150 Per month
(e) Rs. 15,000 and above Rs.200 Per month
128
Payment of Professional Tax
The creation of Professional Tax Pay Head is discussed in detail in the Creation of Masters
chapter and the procedure to process Professional Tax Deduction from Employee Salaries is
discussed in detail in Processing Payroll in Tally.ERP 9 Chapter. In this section, we will discuss
the recording of transactions related to payment of Professional Tax.
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions made a payment of Professional Tax
for the month of April 2009.
The same is accounted as shown:
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers
1. Press F5 for Payment Voucher
2. Press F2, specify the date as 30-04-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In Employee Filters screen,
■ Select Professional Tax Payment from the Process List
■ Specify 1-4-2009 and 30-4-2009 in the From and To date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
129
Payment of Professional Tax
130
Payment of Professional Tax
■ Press Enter to accept the screen and go back to the Payment Voucher screen
■ Press Enter to prefill the Professional Tax amount in the Payment Voucher
131
Payment of Professional Tax
132
Lesson 7: Tracking of Salary Advances / Loans
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 helps you track Salary Advance / loans given to employees and provides the flexibility
to specify simple to complex criteria for Recovery of Salary Advances or loans viz., Flat or manual
deduction and provision of lumpsum loan recovery and so on. Tally.ERP 9 also allows you to
generate a Month wise break-up report for the amount of loan disbursed, recovery of instalments
made and balance amount of Loan / Salary advance. Further, you can also use the Interest Cal-
culation feature of Tally.ERP 9 to compute interest on loans to employee etc.
In Tally.ERP 9, tracking of Salary Advances / Loans paid to employees follow the steps given
below:
□ Creation of Masters
□ Modify / Alter Salary Details
□ Payment of Salary Advance
□ Recovery of Salary Advance
Creation of Masters
Tally.ERP 9 allows you to create different ledgers for different types of Loans / Salary Advances.
Create the following ledger:
Ledger Pay Head Type Under
Staff Salary Advance Loans and Advances Loans and Advances (Asset)
133
Tracking of Salary Advances / Loans
The completed Staff Salary Advance Ledger creation screen is displayed as shown:
The Calculation Type can be taken as Flat Rate if you wish to deduct the
Loan Amount in Flat installments (EMI’s). In this case the Pay Head should
be removed from the Pay Structure after the entire amount is recovered from
the Employee’s salary.
134
Tracking of Salary Advances / Loans
Go to Gateway of Tally > Payroll Info. > Salary Details > Alter
1. Select Vijay Kumar from the List of Groups / Employees and press Enter, the Salary
Details Alteration screen appears
2. In the Salary Details Alteration screen,
3. Tab down to the last line and select Staff Salary Advance ledger in the Pay Head field
4. Select End of List and press Enter
135
Tracking of Salary Advances / Loans
Illustration 1:
On 2nd July, 2009 M/s. Spectrum Software Solutions paid Salary Advance to the following
Employees with the mode and amount of recovery.
136
Tracking of Salary Advances / Loans
2. In the Dr field, select Staff Salary Advance ledger from the list of ledgers
3. Specify 13000 in the Dr Amount field and press Enter, the Cost Allocations for subscreen
appears
4. In the Cost Allocations for subscreen,
□ Select Primary Cost category in the Employee Category field
□ Select the required Employee (Rahul) from the list of Cost Centres and press Enter
137
Tracking of Salary Advances / Loans
138
Tracking of Salary Advances / Loans
139
Tracking of Salary Advances / Loans
140
Tracking of Salary Advances / Loans
□ Similarly, tab down to Staff Salary Advance ledger field of Rajesh and specify 1500 as
the amount to be deducted
141
Tracking of Salary Advances / Loans
If there are multiple Loans given to the Employees and if you wish to keep a
track of recovered loan amount against the Loan given, then you need to
pass a separate payroll voucher in ‘As Voucher’ format, as the bill-wise
details screen won’t appear in the ‘As Pay Slip’ format.
142
Lesson 8: Accounting for Pay Revision &
Arrears
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a facility to process Arrears / Increments for a current Period as well as for a
prior period. It allows you to compute Arrears for a retrospective period, by defining the effective
date of such revisions or increments. Consider the following scenarios to understand the steps
involved in processing Salary revisions / Arrears calculation in Tally.ERP 9.
□ Salary Revision / Arrear Calculation for Prior Period
□ Salary Revision / Arrear Calculation for Current Period
Illustration 1:
On 5th August, 2009 M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such a revision is effective from 1st May 2009.
143
Accounting for Pay Revision & Arrears
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee, so as to take into consideration the declared Salary Revision / arrear
payment for/from the relevant period.
144
Accounting for Pay Revision & Arrears
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 50000
□ Tab down to Conveyance Pay Head and alter the amount to 2000
□ Press Enter to go to the End of List
The completed Salary Details screen is displayed as shown:
145
Accounting for Pay Revision & Arrears
■ Press Enter to automatically prefill the salary arrear amounts for the selected period
146
Accounting for Pay Revision & Arrears
147
Accounting for Pay Revision & Arrears
The completed Salary Arrears Payment voucher of Mahesh for the period from May 2009 to July
2009 is displayed as shown:
The Salary Arrears / Increments may result in increase in Earning Pay com-
ponents which in turn may result in an increase in the tax liability i.e., an
increase in Basic Pay will result in an increase in HRA and such additional
income will be liable to Income Tax or Payroll taxes viz., PF, ESI and PT. The
procedure to make payments of PF, ESI or PT has been discussed in the
previous chapters.
148
Accounting for Pay Revision & Arrears
Illustration 2:
On 15th August 2009, M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such revision is effective from the current month i.e., August 2009.
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee to take effect the declared Salary Revision / arrear payment for/from the
relevant period.
149
Accounting for Pay Revision & Arrears
StartType Options
□ Copy From Parent Value: This option is selected, when the pay struc-
ture details of the Parent group (to which Employee Group, the
employee is grouped under or falls) is required to be prefilled in the Sal-
ary details master.
□ Copy From Previous Value - This option is selected, when the pay
structure details of the Employee for a preceeding period is required to
be prefilled for a future period, in the Salary details master.
□ Start Afresh: This option is selected, when the pay structure details of
the Employee has to be created newly.
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 11000
□ Press Enter on HRA Pay Head and alter the percentage to 30% (To alter the percentage,
ensure in F12: Configure, Allow to Override Slab Percentage is set to Yes)
□ Tab down to Conveyance Pay Head and alter the amount to 2000
150
Accounting for Pay Revision & Arrears
151
Accounting for Pay Revision & Arrears
152
Accounting for Pay Revision & Arrears
You may process Employer and Employee’s contribution to Provident Fund and Employee’s State
Insurance and payment of Profession Tax in the manner as discussed in the earlier chapters.
153
Lesson 9: Processing Payroll for Contract
Employees
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a simplified process for tracking and processing salaries for casual and
contract workers and helps in the generation of contract related reports. Tally.ERP 9 allows you to
process salaries for contractual employees for their services rendered during the agreed tenure.
You may compute salaries on hourly or production basis as agreed upon, by defining the required
criteria for the Pay components.
In this Chapter, we will discuss the recording of transactions related to computation of salaries for
Contractual employees.
Illustration 1:
On 5th August 2009, M/s. Spectrum Software Solutions hired two persons on contract.
154
Processing Payroll for Contract Employees
155
Processing Payroll for Contract Employees
156
Processing Payroll for Contract Employees
157
Processing Payroll for Contract Employees
158
Processing Payroll for Contract Employees
The completed Salary Details creation screen for James is displayed as shown.
159
Processing Payroll for Contract Employees
The completed Attendance Voucher for the Contract Employees is displayed as shown:
160
Processing Payroll for Contract Employees
Process Payroll
On 31st August 2009, M/s. Spectrum Software Solutions processed salaries for the
contract employees through Cash. The Local Conveyance for August 2009 is as follows:
161
Processing Payroll for Contract Employees
The completed Payroll Voucher for Contract Employees for the month of August 2009 will
appear as shown:
162
Lesson 10: Payroll Reports
Payroll Reports help you ascertain the payroll expenses for a specified month or for year-to-date
(YTD) transactions for a particular employee/ group along with the Attendance and Production
details. You can also view the statutory forms required for Provident Fund and Employee State
Insurance. In Tally.ERP 9, the Payroll reports can be broadly categorized into two viz.,
□ Payroll Reports
□ Payroll Statutory Reports
163
Payroll Reports
Payroll Reports
In Tally.ERP 9, you can generate the following Payroll related reports.
164
Payroll Reports
In Tally.ERP 9 Payroll, the Pay Slip can be configured to vertically display the details of attend-
ance, in terms of attendance or production, with Year to Date Values (YTD).
165
Payroll Reports
Some of the options in F12: Configuration screen, are by default set to Yes
viz., Show Employee Details, Show Attendance/Production Details,
Show Attendance/Production Groups, Remove Zero Entries for Attend-
ance/Production also based on the Payroll Features / Payroll Statutory
features enabled during voucher entry.
166
Payroll Reports
167
Payroll Reports
The Pay Slip now displays the Attendance with Present / Overtime details, Year to Date balance,
and so on. To view the Pay Slip in vertical form, press F12: Configure and set Show Vertical Pay
Slip to Yes.
168
Payroll Reports
□ You can view additional information in the Pay Slip, by pressing Alt+F1.
169
Payroll Reports
The voucher number, date and the number of attendance or payroll records are displayed as
shown in the above image. This is very useful when multiple attendance/payroll vouchers are
entered for the same payroll period. You can drill down to the voucher level for reference or to
effect an alteration by pressing Enter on the required record.
Period Button – By default, the Pay Slip for the current month is displayed.
However, you can change the period by pressing F2: Date and defining the
required date. This button can be used to display multiple period payroll infor-
mation to view/print a consolidated Pay Slip.
Employee Button – From the existing Pay Slip of an employee, you can tog-
gle between employees by pressing F4: Employee.
170
Payroll Reports
Some of the configuration in the Printing screen, are similar to F12: Configure and can be config-
ured from either of the screens. Additionally, the Show Authorised Signatory option is available
in the above screen.
□ In the Printing Pay Slip screen, press Backspace and enable the required option as
required
□ Press Enter to Print
171
Payroll Reports
172
Payroll Reports
173
Payroll Reports
174
Payroll Reports
175
Payroll Reports
The Pay Slip sent by e-mail when viewed from the mail box of the employee is as shown:
176
Payroll Reports
The Pay Slip can also be exported to pdf, jpeg or other formats as per the requirement.
177
Payroll Reports
E-mail IDs
To check the E-Mail IDs entered,
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip > E-
Mail IDs
The above report displays the Employees’ for whom the E-Mail iD’s are either not entered or
incorrectly entered. You can press Ctrl+Enter to add or alter the E-Mail ID’s for the required
Employees.To view the E-Mail ID’s for all Employees you can press F5: All Items from the above
report.
178
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip >
Multi Pay Slips
179
Payroll Reports
□ Select the appropriate Employee Category and Employee Group in the Employee FIlters
subscreen as shown:
180
Payroll Reports
Tally.ERP 9 provides the flexibility to E-Mail/Print or Export all Pay Slips from the above screen
using the standard Alt+M/Alt+P/Alt+E buttons from the above screen.
The options in the email/print and Export screens are similar to Single Pay Slip report already dis-
cussed.
Pay Sheet
A Pay Sheet is a columnar report which displays the Group/Department-wise break-up of employ-
ees’ earnings and deductions for the selected month.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Sheet
□ Select the All Items in the Name of Employee Category field
□ Select All Items in the Name of Employee / Group as shown:
181
Payroll Reports
You can further configure the Pay Sheet to display the net amount, column subtotals, Category/
Group subtotals, user-defined Pay Slip names, Employee names and sort it by Employee number
in the F12: Configure.
The F12: Configuration from the Pay Sheet screen is displayed as shown:
182
Payroll Reports
183
Payroll Reports
The Pay Sheet with the above configurations will appear as shown:
184
Payroll Reports
To view the Pay Sheet till date with Category and Group Totals,
□ Press Alt+F2 and change period as 01-04-2009 to 31-08-2009
□ Press F12: Configure and set Show Category/Group Total to Yes
The Pay Sheet with Category and Group Totals displays is displayed as shown:
Button options:
□ Detailed/Condensed Button – This button (Alt+F1) is used to toggle
between the detailed and condensed modes of reporting.
□ Period button – This option (F2) is used to define the periodicity of the
report, i.e. for a day, week, fortnight, month, quarter, half-year, year or
any given period.
185
Payroll Reports
186
Payroll Reports
The Pay Sheet for the selected Employee Group is displayed as shown:
You can also drill down from the above report to the voucher level, by highlighting the pay heads
column of the required employee and pressing Enter.
Button Options:
□ Employee Filter Button – By using the Employee Filter button
(Ctrl+F7), view the individual employee/ Employee group pay sheet
report.
□ New Column – This option (Alt+C) is used to add a new column for any
other Pay Head, which is not part of the pay structure.
□ Alter Column – This option (Alt+A) is used to replace an existing col-
umn in the report with another Pay Head column.
□ Delete Column -– This option (Alt+D) is used to delete an existing col-
umn in the report.
You can also print the Pay Sheet, by pressing Alt+P and specifying the required options in the
Pay Sheet Print configuration screen.
187
Payroll Reports
188
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While printing the Pay Sheet, you can choose to Increase the Line Height (for each employee
line) if you want to create space for the employee’s signature or to affix a stamp. Such a Pay
Sheet can also be used for the salary disbursement register.
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□ Press Alt+P to print Pay Sheet and set the Increase Line Height for Signature/ Stamp?
field to Yes
The printed Pay Sheet with space for signature/ stamp is as shown.
Figure 10.28 Printed Pay Sheet with space for Signature/ Stamp
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Figure 10.29 Printed Pay Sheet with space for Signature/ Stamp – Page 2
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You can also E-mail or use Export Pay Sheet Report in the manner as
discussed in Pay Slip Section. The navigation steps for E-mailing and
Exporting Pay Sheet is similar to the steps explained in Pay Slip Report.
Payroll Statement
A Payroll Statement is a columnar report which displays Group/Department-wise employees’
break-up of selected earnings or deductions, for a specified month or period.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payroll
Statement
□ Select the required pay head and press Enter
The Payroll Statement for Basic Pay Earnings Head for the month of April 2009 is displayed as
shown:
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Payroll Reports
You can further configure the Payroll Statement to display the Employee groups and categories,
category/group subtotals, grand totals, user-defined Pay Slip names, employee names, employee
bank details, sort it by Employee number, by pressing F12: Configure
□ Enter the details in F12: Configuration screen as shown
The F12: Configuration screen is displayed as shown:
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Payroll Reports
□ You can also Email or Export Payroll Statement in the manner as dis-
cussed in Pay Slip Section.
□ The Button Bar options in Payroll Statement are same as in the Pay-
sheet report.
To view Payroll Statement for other Pay Heads, you can either select other Pay Head(s) in the
manner as discussed or you may also include other Pay Heads in the above report for compara-
tive analysis or to obtain a cumulative value, by pressing Alt+C and selecting the required Pay
Head(s).
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The Payroll statement with additional Pay Heads will be displayed as shown:
Payment Advice
A Payment Advice is an intimation letter containing the details of employees with their bank
account numbers issued to the banker to transfer a specified sum (salaries earned) to the
employees’ bank accounts.
As discussed earlier, the contents of the Payment Advice can be altered in F12: Payroll Configu-
ration as per the employer’s requirements.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payment
Advice
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The printed Payment Advice for May 2009 will appear as shown:
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Payroll Reports
□ The Payment Advice will be available only when the Salaries are proc-
essed through Bank Transfer and a Payment voucher is passed for the
salaries payable for a given month/period.
□ You can also Email or Export Payment Advice in the manner as dis-
cussed in Pay Slip Section.
Payroll Register
A Payroll Register is a month-wise transaction summary report which displays the number of
payroll vouchers passed during a particular month. Additional information can be appended into
the Payroll Register, by inserting a new column with the required voucher type i.e., Attendance,
Journal, Purchases, Sales and so on.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Payroll
Register
The Payroll Register is displayed as shown:
□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown.
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Payroll Reports
Tally.ERP 9 allows you to drill down to the voucher level from the above display for any kind of
verification. Use the Enter key on the required month/period to drill down to the required level.
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You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Employee Pay
Head Breakup
□ Select the required Pay Head from the List of Pay Heads and press Enter
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The Employee Breakup of Pay Head for Basic pay screen is displayed as shown:
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Payroll Reports
You can also Email or Export Employee Breakup of Pay Head Report in
the manner as discussed in Pay Slip Section.
To drill down to the Employee Monthly Summary report from the Employee Summary report,
□ Highlight the required employee and press Enter
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To further drill down to Employee Voucher level screen from the Employee Monthly Summary
report, press Enter on the required month.
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You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
The Employee Breakup of Pay Head report can be viewed with additional Pay Heads, by
pressing Alt+C and adding the required Pay Head and by pressing Alt+N for multiple periods.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Pay Head
Employee Breakup
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Payroll Reports
To further drill down to view the Breakup of Employee report for each ledger from the above
displayed report, select the required ledger and press Enter.
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The Breakup of Employee screen for a selected ledger (Basic Pay) is displayed as shown:
You can drill down further to view the Monthly Summary of the selected ledger and the Employee
Voucher report.
The Pay Head Employee Breakup report can be viewed with additional employees, by pressing
Alt+C and adding the required Employee and for multiple periods, by pressing Alt+N.
Attendance Sheet
An Attendance Sheet is a columnar report which displays the details of Attendance/ Production
types with the number of attendance/ production units achieved during a particular month or
period.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Sheet
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Payroll Reports
You may configure the above report with additional details, by pressing F12:Configure and
enabling the following options, as required.
The completed F12: Configuration screen is displayed as shown:
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Payroll Reports
Attendance Register
An Attendance Register is a month-wise transactions summary report which displays the number
of attendance vouchers passed during the month. You can append additional information by
inserting a new column with the required voucher type, i.e. Payroll, Journal, Purchases, Sales and
so on.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Register
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Payroll Reports
□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown
The F12:Configuration options in Attendance Register are as displayed below:
Tally.ERP 9 allows you to drill down to the voucher register, from the Attendance Register screen
for any kind of verification.
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Payroll Reports
You may further drill down to voucher level, by pressing Enter on the required transaction.
Expat Reports
Expat Reports provide information about regular as well as contractual employees, working
abroad on a short/ long tenure or on assignment. They capture all the relevant information in
respect of passport, visa and contract details along with the date of joining, the issuing country
and the expiry date. In Tally.ERP 9, the following Expat reports are available.
□ Passport Expiry
□ Visa Expiry
□ Contract Expiry
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Passport Expiry
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Payroll Reports
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Payroll Reports
□ Show All Employees – Set this option to Yes, to view the passport
details of all employees. It includes information on expired and unex-
pired passport details. If this option is set to No, Show Expiry in days will
be available.
□ Show Expiry in days – Set this option to Yes, to enter the expiry days.
When Show All Employees and Show Expiry in days options are set
to No, Tally.ERP 9 filters only those employee passport details, which
are nearing the expiry date. If this option is set to Yes, Expiry in next n
days will be available.
□ Expiry in next n days – Set this option to Yes, to get the passport
expiry details for the next specified number of days. On entering the
number of days, Tally.ERP 9 filters the employee passport details which
are likely to expire within the specified period (number of specified days).
If this option is left blank, the report will denote the current date (last date
of voucher entry).
□ Show Employee Number – Set this option to Yes, to display the
employee number of employees in the report.
□ Appearance of Names – Select the appropriate name style to appear in
the Passport Expiry Report (Alias (Name), Alias only, Name (Alias),
Name only).
□ Sorting Method — Sort employee details based on Employee Number,
Passport Expiry Date (Ascending/Descending), or by the default
method.
□ Show Employee Email Id – Set this option to Yes, to view the email ids
of employees.
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Visa Expiry
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Payroll Reports
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Contract Expiry
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
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Payroll Reports
You can view Payroll Statutory reports either from the Statutory Reports menu or Payroll Reports
menu i.e., Gateway of Tally > Display > Statutory Reports > Payroll Reports or Gateway of
Tally > Display > Payroll Reports > Statutory Reports
In this section, we will generate each of the above mentioned forms / report and understand the
purpose and information to be furnished.
i. PF Computation Report
The PF Computation Report provides the summary of Amount Payable and amount paid in
respect of PF for a given period comprising of Employer Contributions, Employee Deductions and
Employer’s Other charges, if any. To view PF Computation Report, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
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Payroll Reports
The report, by default displays the summary of Employee’s Provident Fund, Employees’ State
Insurance and Professional Tax. You may however configure to display only details of Provident
Fund.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
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To view detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
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You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
ii. Form 5
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a)], a return is
required to be submitted in Form 5 within 15 days of the following month detailing the list of
Employees qualifying for membership to the Employees’ Provident Fund for the First time during
every month.
Form 5 is a monthly Returns to be submitted with the details of any new employee covered under
EPF. In Tally.ERP 9, you can generate Form 5 in the prescribed format containing the details of
the new joinees in the organisation for the selected month. To generate the PF Form 5 for the
month of June 2009, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 5
In the Payroll Statutory Print Configuration screen,
□ Specify 01-06-2009 and 30-06-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
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In our case study, there are two new employees who have joined during the month of June 2009
and thus Form 5 contains the details of these employees.
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iii. Form 10
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a) & (b), a Return
is required to be submitted in Form 10 within 15 days of the following month detailing the list of
members leaving service during the month.
Form 10 is a monthly Return to be submitted with the details of employees leaving the organisa-
tion. In Tally.ERP 9, on resignation or retirement or expulsion of any employee, the date of leaving
is required to be specified in the Employee master of such employee. The Date of Leaving option
in the Employee Master is available in the alteration mode. Form 10 contains the details of
Employees for whom the date of leaving is specified in the Employee Master.
You can generate Form 10 in the prescribed format containing the details of the employees who
have resigned in the selected month. To generate the PF Form 10 for the month of August 2009,
follow the steps given below.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 10
In the Payroll Statutory Print Configuration screen
□ Specify 01-09-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
□ Specify 30-09-2009 in the Date field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Payroll Reports
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 12A
In the Payroll Statutory Print Configuration screen
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Specify the Name & Address of the Bank
□ Set Include VPF Account to No
□ Specify 2 in the Number of Contract Employees field
□ Press Enter to accept 0 in Number of Rest (Temporary Employees) field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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v. PF Monthly Statement
The PF Monthly Statement provides a summary of Employee wise monthly PF Employee Deduc-
tions and Employer Contribution amounts. To print the PF Monthly Statement, follow the steps
given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Monthly Statement
In the Payroll Statutory Print Configuration screen,
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
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vi. Form 3A
As per the Employees' Provident Funds Scheme,1952 [para 35 & 42] and the Employees'
Pension Scheme 1995 (Para 19), a Form (Member’s Annual Contribution Card) showing month
wise recoveries towards EPF and Pension Fund in respect of a member for one financial year is
required to be furnished by the employer before 30th April of the following year.
Form 3A is a annual contribution card to be furnished for each employee in separate sheets to
EPFO. To print Form 3A, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 3A
In the Payroll Statutory Print Configuration screen
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Specify 28-02-2010 in the Date of Printing field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Payroll Reports
The next page will contain the Contribution Card in Form 3A for the next employee.
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vii. Form 6A
As per the Employees' Provident Funds Scheme,1952 [para 43] and the Employees' Pension
Scheme 1975 [para 20], a Form (Consolidated Annual Contribution Statement) providing annual
contributions of each member of the establishment is required to be submitted by 30th April.
Form 6A is a vital form for compiling the annual Provident Fund statement of a subscriber. In
Tally.ERP 9, you can generate Form 6A in the prescribed format. To print Form 6A, follow the
steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 6A
In the Payroll Statutory Print Configuration screen
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Payroll Reports
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
E-Return
□ Press Backspace and specify the details as shown:
The Out File Name can be changed with the .dbf extension to by default
export the form in the required format. Or the Form can be exported in the
Excel Format and renamed by changing the extension as .dfb.
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
The report, by default displays summary of Employee’s Provident Fund, Employee’s State
Insurance and Professional Tax, you may however configure to display only details of Employee
State Insurance.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
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Payroll Reports
To view the detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
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Payroll Reports
You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 3
In the Payroll Statutory Print Configuration screen,
□ Specify 1-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Select All Items in the field Gender
□ Type Bangalore in the Place field
□ Specify 31-08-2009 in the Date of Printing field
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Payroll Reports
□ Type the Designation details of the person submitting the declaration form
The completed Payroll Statutory Print Configuration screen is displayed as shown:
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Payroll Reports
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Payroll Reports
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Payroll Reports
The printed ESI Monthly Statement for August 2009 is displayed as shown:
iv. Form 5
As per Regulation 26, a Return of Contribution in Form 5 is required to be submitted to the appro-
priate Branch Office within 42 days of the expiry of the contribution period (i.e, 12th May or
November 11th of each year). Such return of contribution should be prepared in quadruplicate
and submitted separately for the main Code Number and each sub-code number.
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Payroll Reports
The employer may make compliance from the parent unit and submit only one return in respect of
all the branches or may make compliance through their Branch Offices/ Sales Offices separately
in the Regions where such offices are located.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 5
In the Payroll Statutory Print Configuration screen
□ Specify 01-04-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Specify Bangalore in the Place Field
□ Specify 30-09-2009 in the Date of Printing field
□ Type the name of the Signatory in the Authorised Signatory Name field
□ Type the Designation details of the signing authority
□ In the Residential Address field provide the Home Address of Authorised Signatory
The completed Payroll Statutory Print Configuration screen for ESI Monthly Statement is
displayed as shown:
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Payroll Reports
245
Payroll Reports
246
Payroll Reports
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Payroll Reports
v. ESI Form 6
As per Regulation 32, a register of Employees covered under Employees State Insurance
Scheme, containing information regarding the Insurance No., dispensary, other occupational
details, Employer’s Share and month wise (under that particular Half Year) ESI details (i.e., Gross
wages, Number of working days and ESI Contribution for each employee) should be furnished. To
generate Form 6, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 6
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Payroll Reports
249
Payroll Reports
250
Payroll Reports
251
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Computation Report
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Type Bangalore in the Place field
■ Specify 31-08-2009 in the Date of Printing field
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Payroll Reports
253
Payroll Reports
The printed Professional Tax Computation report for the month of August 2009 will appear as
shown:
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Statement
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Select Employee Name as the Sorting Method
The completed Payroll Statutory Print Configuration screen will appear as shown:
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Payroll Reports
The printed Professional Tax Statement for August 2009 is displayed as shown:
256
Payroll Reports
You can view PT Computation Report from Gateway of Tally > Display >
Payroll Reports > Statutory Reports > Computation menu, detailing Pro-
fessional Tax collected and paid during a given period in the manner as
discussed in Provident Fund Computation Report section.
Gratuity Report
The Gratuity Report displays the provisional liability of an employer towards his employee in
respect of gratuity payable at the time of cessation of employment either by resignation, death,
retirement or termination.
The Gratuity Summary Report displays the gratuity amount payable in accordance with the pay
components and formulae defined in the ledger master, as discussed earlier. In Tally.ERP 9, the
Gratuity amount is calculated proportionately for eligible days in a year to the extent of completed
months of service.
You can view the Gratuity Report either from Statutory Reports menu or Payroll Reports menu i.e.,
Gateway of Tally > Display > Payroll Reports > Statutory Reports or Gateway of Tally >
Display > Statutory Reports > Payroll Reports.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Gratuity Report
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Payroll Reports
The Gratuity Report for the Employees eligible for Gratuity is displayed as shown:
The above report displays the Gratuity Amount computed for each month for each Employee.
In order to ascertain the Gratuity payable amount, set Use for Gratuity to
Yes in the Pay Head master (i.e. Basic Pay, Dearness Allowance etc.)
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Payroll Reports
The above report displays the details of all employees along with the Date of Birth, Date of Joining
and the Gratuity Eligible Salary, besides commenting on the total Gratuity liability as on date.
Tally.ERP 9 allows you to drill down to the Gratuity Details report from the above display.
□ Select the required employee and press Enter
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Payroll Reports
Once the employee is deactivated (i.e., when the date of leaving is filled in the
Employee master), Tally.ERP 9 stops computing Gratuity for the deactivated
employee. If the tenure of service of such an employee falls below the eligible
slab for gratuity calculation, he/she will not be entitled for any gratuity amount.
However, in cases where the tenure of service is spread over more than one
eligible slab(s), he/she will be entitled to the sum total of all the slabs.
The above report displays the detailed Gratuity computation for all the slabs entered during the
Gratuity Pay Head Creation.
260
Implementation of
Payroll in Tally.ERP 9
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Introduction ............................................................................................................................................................................... 1
i
Contents
ii
Introduction
The term Payroll refers to a series of accounting transactions involved in the process of paying
employees for the services rendered after taking all the statutory and non-statutory deductions
into account, in conformance with the terms of employment, company policy and the law of the
land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions.
An efficient payroll system facilitates an error-free, accurate and timely employee payment while
ensuring that the employment is well within the valid work permit.
Lesson 1: Configuring Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt:
Payroll in Tally.ERP 9 is easy to use and can handle all the functional, accounting and statutory
requirements of the payroll department.
2
□ It facilitates an accurate computation and deduction of ESI, EPF, Professional Tax, Gratuity
etc.
□ It helps in the generation of Statutory Forms & Challans for EPF & ESI, as prescribed.
□ It allows to drill-down to voucher level for any kind of alteration.
□ It facilitates computation of arrears pertaining to prior period(s).
□ It helps in tracking employee loan details.
The option More than ONE Payroll / Cost Category is set to Yes, when
separate cost categories are created to allocate Employee cost. In cases,
where only one cost category i.e., primary cost category is used to allocate
multiple cost centres, this option may be set to No.
Once the Payroll feature is activated in Tally.ERP 9, the following two new options get activated in
the F11: Statutory & Taxation Master
5
Configuring Payroll in Tally.ERP 9
□ Press Enter
6
Configuring Payroll in Tally.ERP 9
Provident Fund
Company Code: This field denotes the Provident Fund Code of the Com-
pany allotted by the Department.
Company Account Group Code: This field denotes the Provident Fund
Group Code of the Company allotted by the Department.
Company Security Code: This field denotes the Security Code of the Com-
pany allotted by the Department.
Employee State Insurance
Company Code: This field denotes the ESI Code of the Company allotted by
the Department.
ESI Branch Office: This field denotes the nearest ESI office under whose
jurisdiction, the company is situated.
Standard Working days (per month): This field denotes the consistent Pay
Period to be considered for ESI Calculation. If this field is left blank, the calcu-
lation is done based on the Calendar days in each month.
□ Press Enter to Accept the screen and go back to F11: Statutory & Taxation Features
screen
□ Press Ctrl+A to Accept the screen.
7
Lesson 2: Creation of Payroll Masters
Lesson Objectives
On completion of this lesson, you will have learnt how to:
7
Creation of Payroll Masters
The Payroll feature in Tally.ERP 9 requires minimal effort for accurate payroll processing. It takes
five easy steps to process payroll & generate Pay Slip in Tally.ERP 9.
Essentially, Payroll involves the calculation of amounts due for an employee on the following
basis:
□ Pay on Hourly wages
□ Pay on a fixed basis such as certain amount per week, per month and so on
□ Pay to sales persons on commission
□ Reimbursement of expenses such as travel expenses, either as paid by the employee or
based on per item rate
□ Pay on the basis of number of pieces produced/ manufactured/ sold
It is therefore essential to quantify the following payroll information for the purpose of computation
of payments to employees. For this purpose, the following Payroll masters have to be created in
Tally.ERP 9 in the manner as discussed:
□ Employee Masters
□ Payroll Masters
□ Pay Heads
8
Creation of Payroll Masters
□ Salary Details
Employee Setup
The Employee Master records employee information – department, date of joining, date of
leaving, ID number, designation, location, function, employee bank details, statutory details,
Passport and Visa details, and so on.
Tally.ERP 9 provides the flexibility to create the Employees and Group them under specific
Employee Group which in turn can be created under specific Employee Categories.
The following masters can be created in Tally.ERP 9 to successfully record the Employee Details:
□ Employee Category
□ Employee Groups
□ Employees
Employee Groups
Businesses with multiple departments, divisions, functions or activities may create the required
employee groups and classify individual employees under a specified group i.e., Production,
Sales, Marketing, Stores, Support or a particular group of employees such as managers, supervi-
sors, sub-staff and so on.
9
Creation of Payroll Masters
Similarly, create the other Employee Groups such as Administration and R&D.
Employee Master
After creating the Employee Groups, create individual Employee Masters, with or without
grouping them, under the Employee Group Master.
In Tally.ERP 9, you can record all the necessary information of the employees in the Employee
Masters. Tally.ERP 9 also allows you to enter the Statutory, Expat and Contract details of the
employees.
To display the options for entering the Statutory, Expat and Contract details enable these options
from the Company Configuration screen as explained below:
Go to Gateway of Tally > F12:Configure > Payroll Configuration
Set the following options:
□ Show Statutory Details to Yes
□ Show Passport & Visa Details to Yes
□ Show Contact Details to Yes
10
Creation of Payroll Masters
11
Creation of Payroll Masters
The option Date of Leaving and Reason for Leaving will be available only in
the Alteration mode.
Similarly, create the Employee Masters for other employees with their respective departments.
Payroll Masters
As discussed in the above section Pay components are computed based on the Payroll Units.
Therefore, create the following Payroll masters in Tally.ERP 9:
□ Payroll Units
□ Attendance / Production Types
Payroll Units
A payroll unit refers to a unit of measurement based on which pay heads are calculated. Payroll
units can be classified into two types viz., Simple Payroll Units and Compound Payroll Units.
Simple Payroll Units refer to individual units such as Day, Week, Month, Hours, Pcs, Box, Nos
etc., Whereas, Compound Payroll Units refer to Units which are combination of two simple units,
i.e., an Hour of 60 Minutes, Month of 26 days, Day of 8 Hrs.
Usually, the Pay components are computed based on a single or compound payroll units.
Sometimes an employee may be paid on the basis of a combination of two or more units. For
12
Creation of Payroll Masters
example, an employee is paid a regular salary and an hourly rate for the overtime hours. In this
case, the two likely units are Calendar Month and Hours. In Tally.ERP, you can create simple as
well as compound units.
By default, Tally.ERP 9 contains four preset Calculation Periods – Days, Fortnights, Months &
Weeks. However, you can also create new Payroll Units based on your business requirements.
Name Type Symbol
Hours Simple Hrs
Minutes Simple Mins
Hrs of 60 Mins Compound Hrs of 60 Mins
Go to Gateway of Tally > Payroll Info. > Units (Work) > Create
In the Unit Creation screen,
1. Simple is defaulted as the Type of Unit
2. Specify Hrs as the Symbol
3. Type Hours as the Formal Name
4. Specify 2 as the Number of Decimal Places
13
Creation of Payroll Masters
Types of Units:
□ Simple Units are individual units with no relationship with other units
i.e., Hrs, Nos, Pieces and so on.
□ Compound Units are a combination of two simple units, where the two
units have an arithmetical relationship with each other. For example, an
Hour of 60 Minutes.
Create the following Attendance Types for M/s. Spectrum Software Solutions.
Name Under Attendance/Production Type Period Type
Present Primary Attendance/ Leave with Pay Days
Absent Primary Leave without Pay Days
Overtime Primary Production Hrs of 60 Mins
14
Creation of Payroll Masters
3. Select Attendance/ Leave with Pay as the Attendance Type and the Period Type appears
as Days, by default.
15
Creation of Payroll Masters
In the same way, create Overtime as the Production Type with Production as the Attendance
Type.
Pay Heads
Pay Heads may be broadly considered as Earnings and Deductions from an employee’s point of
view. However, these pay heads would still be Expense and Liability from the employer’s view
point.
Some examples of Earnings Pay Heads are Basic Salary, Dearness Allowance, City Compensa-
tory Allowance, House Rent Allowance, Night Shift Allowance, Uniform Allowance, Sales Com-
mission and so on. Some examples of Deductions pay heads are Employees’ Provident Fund
(EPF), Employees’ State Insurance (ESI), Professional Tax, Income Tax, TDS, Advance (if any).
In Tally.ERP 9, each pay head is to be created as an individual ledger account and grouped under
its respective group i.e., all Earnings pay heads under Indirect Expenses group or Direct
16
Creation of Payroll Masters
Expenses group and all Deductions pay heads under Current Liabilities, Current Assets and
Duties & Taxes group.
Create the following pay heads in the books of M/s. Spectrum Software Solutions.
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
In the Pay Heads Creation screen,
17
Creation of Payroll Masters
Figure 2.11 Basic Pay Head Creation – Pay Head Type Selection
3. Specify the group as Indirect Expenses in the field Under and press Enter
4. Set Affect Net Salary to Yes
5. Specify Basic in the field Name to appear in Pay Slip
6. Set Use for Gratuity to Yes
7. Select On Attendance in the field Calculation Type and press Enter
18
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation is displayed as shown:
As Computed Value – This method is used when the pay value is computed
based on certain predefined factors i.e., slab rates, pay heads and so on.
As User-Defined Value – This method is used when the value of pay is not
fixed and does not depend upon any pay components.
Flat Rate – This method is used when the value of the pay heads is fixed for
the given month. This calculation type is not dependant upon attendance/pro-
duction. For example, conveyance of Rs. 800 per month.
On Attendance — This calculation type depends upon Attendance records
and is used along with rate per unit of attendance. For example, Overtime of
Rs. 25 per hour.
On Production — This method is used when the pay value is measured
based on work done i.e., pieces or numbers produced/manufactured.
19
Creation of Payroll Masters
The Pay Head Creation screen with the List of Attendance Types is displayed as shown below:
Figure 2.13 Pay Head Creation screen with List of Attendance Types
If the user intends to record Negative Attendance viz., Absent (i.e if the pay
value is measured on the basis of negative attendance units), select Not
Applicable in the Attendance/ Leave with Pay field and press Enter & then
select Absent in the Leave without Pay field. In the above example we are
selecting Positive Attendance unit i.e Present.
20
Creation of Payroll Masters
The Pay Head Creation screen with the List of Calculation Periods is displayed as shown:
21
Creation of Payroll Masters
10. Select User defined in the Per Day Calculation Basis field
22
Creation of Payroll Masters
13. Select Normal Rounding as the Rounding Method and press Enter.
23
Creation of Payroll Masters
14. Specify 1 as the rounding Limit (The Rounding limit allows the value to be in multiples of the
limit specified and is based on the Rounding Method selected)
24
Creation of Payroll Masters
Figure 2.19 HRA Pay Head Creation screen - Calculation Type selection
8. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
25
Creation of Payroll Masters
9. In the Computation Info screen, select On Specified Formula in the Compute field
Computation on details:
On Current Deductions Total – This calculation type is used when the value
of a pay head depends upon the total of the deductions pay heads previously
defined.
On Current Earnings Total – This calculation type is used when the value of
a pay head depends upon the total earnings pay heads previously defined.
On Current Sub Total – This calculation type is used when the value of a
pay head depends upon the net totals of earnings and deductions previously
defined.
On Specified Formula – This calculation type is used when the pay head
value is computed on the value of one or more pay heads already defined in
the pay structure. (Tally.ERP 9 allows the addition and subtraction of pay
heads already defined in the pay structure and multiplication and divisions
using attendance types. For example, HRA is computed as 40% of the basic
salary.)
26
Creation of Payroll Masters
The pay head drop-down box contains pay heads already created. If any pay head(s) is a
component for the given Pay Head, you may create the required Pay Head by pressing Alt+C
from the above Pay Head field and make the necessary alterations in the required pay head.
27
Creation of Payroll Masters
28
Creation of Payroll Masters
14. Select Percentage as the Slab Type from the List of Slabs
29
Creation of Payroll Masters
15. Specify 40% in the Value Basis field and press Enter
The completed House Rent Allowance (HRA) Pay Head Creation screen is displayed as
shown.
30
Creation of Payroll Masters
31
Creation of Payroll Masters
32
Creation of Payroll Masters
Pay Head Pay Head Statutory Under Affect Name to Calcula- Computation
Name Type Pay Type Net Appear in tion Type Method
Salary Pay Slip
Employees’ Employees’ PF Current Yes EPF @ 12% As On
PF Contribu- Statutory Account Liabilities Computed Specified For-
tion @ 12% Deductions (A/c No.1) Value mula
Employees’ Employees’ Employee Current Yes ESI @ On Speci- Basic Pay +
ESI Contri- Statutory State Liabilities 1.75% fied For- House Rent
bution @ Deductions Insurance mula Allowance +
1.75% Conveyance +
Overtime Pay
(or Current
Earnings -
Variable Pay)
Profes- Employees’ Profes- Current Yes Profession As On Current
sional Tax Statutory sional Tax Liabilities Tax Computed Earnings Total
Deductions Value
33
Creation of Payroll Masters
34
Creation of Payroll Masters
3. Select PF Account (A/c No. 1) in the Statutory Pay Type field as shown:
4. Specify the group as Current Liabilities in the field ‘Under’ and press Enter (In Tally.ERP 9,
only relevant groups appear during selection, to reduce erroneous data inputs)
5. Set Affect Net Salary to Yes
6. Specify EPF @ 12% in the field Name to appear in Pay Slip
7. As Computed Value appears in the field Calculation Type by default
8. Select Normal Rounding as the Rounding Method. Specify 1 as the rounding Limit and
press Enter
9. Select On Specified Formula as the Compute method and press Enter
35
Creation of Payroll Masters
10. In the Compute sub-screen, select Basic Pay as the Add Pay Head function and press
Enter
36
Creation of Payroll Masters
14. Specify 6500 in the Amount Upto column and press Enter
15. Select Percentage as the Slab Type from the List of Slabs
16. Specify 12% as the Value Basis Percentage and press Enter (the From Amount is defaulted
as 6500)
17. Press Enter to accept the upper level as 0 and select Value as the Slab Type from the List of
Slabs
37
Creation of Payroll Masters
18. Specify Rs. 780 in the Value Basis field and then press Enter
Figure 2.33 Deduction Pay Head Creation screen with Value Basis
38
Creation of Payroll Masters
The completed Employee’s PF Contribution @ 12% Pay Head Creation screen is displayed as
shown:
39
Creation of Payroll Masters
Figure 2.35 Employee's ESI Pay Head creation screen - Compute On Selection
40
Creation of Payroll Masters
■ Similarly, select Conveyance and Overtime Pay as the Add Pay Head function
Figure 2.36 Employee's ESI Pay Head creation screen - Add Pay Head selection
Any income of a regular nature will be subject to ESI calculation viz., Basic
Pay, Dearness Allowance, House Rent Allowance, Conveyance, Overtime
etc.,)
41
Creation of Payroll Masters
Figure 2.37 Employee's ESI Pay Head creation screen – Slab Rate
42
Creation of Payroll Masters
The completed ESI – Employee’s Contribution Pay Head Creation screen is displayed as
shown:
Figure 2.38 Completed ESI – Employee’s Contribution Pay Head Creation screen
43
Creation of Payroll Masters
The completed Professional Tax Pay Head Creation screen is displayed as shown:
44
Creation of Payroll Masters
* Eligible salary refers to the sum of pay heads covered in the employee’s
latest pay structure, for the relevant period. The pay heads must be set to Yes
for Use for gratuity and the Gratuity ledger should be part of the pay struc-
ture.
# Served period is computed from the date of joining to the end date of cal-
culation period. Served period may be proportionate such as 11 years 10
months and 5 days.
When Served period covers more than one slab, the total of the calculations
of all the slabs will constitute the gratuity provisional amount of the employee.
45
Creation of Payroll Masters
The Slab Rate Details for Gratuity calculation screen is displayed as shown:
46
Creation of Payroll Masters
The completed Gratuity Expenses (Provisional) Pay Head Creation screen is displayed as
shown:
47
Creation of Payroll Masters
1. Select Vijay Kumar from the List of Employees and press Enter
In the Salary Details screen,
□ The Effective date is entered as 01-04-2009 by default based on the Date of Joining
entered in the Employee Master
□ Select Basic Pay as the Pay Head from the List of Pay Heads
□ Specify 10,000 as Rate
□ The Attendance units, Pay Head Type and Calculation Type appear by default, based
on the pay head definitions.
48
Creation of Payroll Masters
2. Select House Rent Allowance as the second Pay Head and press Enter
3. Select Conveyance as the next Pay Head
4. Specify 800 as Rate and press Enter
5. Select Overtime Pay as the Pay Head
6. Specify 55 as the Rate and press Enter
7. Select Variable Pay as the Pay Head and press Enter
8. Select Professional Tax against the Pay Head and press Enter
9. Select Employee’s PF Contribution @ 12%, Employee’s ESI Contribution @ 1.75% as Pay
Head and press Enter
10. Select the Gratuity Expenses (Provisional) ledger and press Enter (In case of Employees
eligible for Gratuity, the Gratuity Expenses ledger should be included in the Salary details of
the respective Employee for provisional assessment of Gratuity)
49
Creation of Payroll Masters
The completed Salary Details Creation screen for Mr. Vijay Kumar is displayed as shown:
Tally.ERP 9 allows you to modify the pre-defined Slab rates by pressing F12:
Configure and setting the option Allow to Override Slab Percentage to
Yes.
50
Creation of Payroll Masters
Similarly, create the pay structure for the other employees as per the details given in the following
table:
Pay Head Rahul Mahesh Ajay
Basic Pay 20,000 45,000 10,000
House Rent Allowance 40% 40% 20%
Conveyance — 1,000 2,000
Overtime Pay — — 100
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable as Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable as Slab Rates
Professional Tax Applicable as Slab Rates
Salary Details for Ajay can be created similar to the Salary Details creation for Vijay Kumar.
Since Ajay and Mahesh are in Sales Group, we can create the Salary Details for the Group and
inherit the same for the Employees (Ajay and Mahesh) in that Group.
51
Creation of Payroll Masters
The Pay structure created above can be inherited for all the employees belonging to Sales Group.
This feature helps in eliminating the repetitions while creating the Salary Details.
To define the Salary Details for Mr. Ajay belonging to Sales Group, follow the steps given below:
Go to Gateway of Tally > Payroll Info. > Salary Details > Create
1. From the List of Group / Employees select Ajay and press Enter
2. Select Copy From parent Value from the Start Type options under Pay Head
52
Creation of Payroll Masters
3. The Pay Structure (comprising of Earning & Deductions pay heads) defined for the Group is
prefilled automatically.
4. Enter the values for each Pay Head for Ajay as per the details mentioned earlier.
5. Press F12: Configure
■ Set the option Allow to Override Slab Percentage to Yes, since the HRA calculation
percentage is 20%.
53
Creation of Payroll Masters
54
Creation of Payroll Masters
Similarly, you can create the Salary Details for Mahesh and others employees.
55
Lesson 3: Processing Payroll in Tally.ERP 9
Lesson Objectives
On completion of this lesson, you will have learnt
There are three types of Payroll Vouchers namely Attendance Voucher, Payroll Voucher and
Payment Voucher, which are by default preset in Tally.ERP 9 to record above Payroll transac-
tions.
Payroll Vouchers are used for the purposes of operating your payroll and also records the attend-
ance of the employees for a given period. These vouchers are basically used to input information
pertaining to Payroll processing.
.
Attendance Vouchers
An Attendance Voucher is used to record employees’ attendance data, based on Attendance/
Production types (i.e., present or absent days, overtime hours and so on).
An Attendance Voucher allows you to record the attendance/ production units for employees.
Tally.ERP 9 gives you the flexibility to enter the attendance records through a single attendance
voucher for a payroll period, or through multiple attendance vouchers as and when required within
a payroll period. You also have the option of recording one attendance/ production voucher per
employee per day or collectively for a month or any other variation thereof for all the employees.
In Tally.ERP 9, the auto-fill facility (Alt+A) is used to prefill the required Attendance/Production
types data for the selected employee group/ employee for the specified period.
56
Processing Payroll in Tally.ERP 9
Example 1:
On 30th April, 2009 the attendance records of M/s. Spectrum Solutions displayed the
following details:
Attendance/ Produc- Vijay Kumar Rahul Mahesh Ajay
tion Types
Present Days 26 22 15 17
Overtime hours 900 Min 720 Min
(15hr x 60min) (12hr x 60min)
In the above scenario, separate attendance vouchers are required to be entered for recording
Present days and Overtime hours.
57
Processing Payroll in Tally.ERP 9
■ Select All Items as Employee/ Group (if you want to generate payroll voucher for indi-
vidual employee/ group, select the respective employee or group)
58
Processing Payroll in Tally.ERP 9
The Attendance Auto Fill with Employee Filters screen is displayed as shown:
■ Specify the require value that should be prefilled for all Employees e.g. 26
■ Press Enter to accept the screen
59
Processing Payroll in Tally.ERP 9
60
Processing Payroll in Tally.ERP 9
The Attendance Voucher Creation screen with the attendance details screen is displayed as
shown:
7. Press Enter
8. Enter the details of the transaction in the Narration field
61
Processing Payroll in Tally.ERP 9
The completed Attendance Voucher Creation for Present Attendance is displayed as shown:
Days with Loss of Pay (LOP) are treated as a Deductible with respect to the
Earnings Pay Head type and as a Payable with respect to the Deductions
Pay Head type. For example, LOP is deducted from the Basic salary
(Earnings Pay Head) and Canteen expenses (Deductions Pay Head) are
treated as a payable.
62
Processing Payroll in Tally.ERP 9
You can also record Overtime in hours, provided the Unit of Measurement for
the Payroll unit is defined as Hrs.
After creating the Attendance Voucher, you can change any attendance value for a particular
employee, if required, in the Voucher Alteration mode.
63
Processing Payroll in Tally.ERP 9
Payroll Vouchers
A payroll voucher is used to record all employee-related transactions. It enables you to compute
all the values for the respective Pay Heads (Earnings and Deductions).
The calculations are made on the basis of the definitions specified in the pay head masters, pay
structure and attendance entries. In Tally.ERP 9, you can pass payroll vouchers manually for indi-
vidual employee as well as for the entire group/ organisation by using the Auto Fill facility (Alt+A).
In Tally.ERP 9, the disbursement of salaries can be effected in any of the following modes.
□ Direct Remittance – in cash or by cheque
□ Bank Transfer – a direct transfer is made to an employee’s bank account and the list of
disbursement is printed separately
Cash Remittance
Example 2:
On 30th April, 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
64
Processing Payroll in Tally.ERP 9
65
Processing Payroll in Tally.ERP 9
All the pay values are calculated for the applicable pay heads for each employee grouped under
the selected group.
66
Processing Payroll in Tally.ERP 9
4. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee (in this case, define the Variable Pay)
67
Processing Payroll in Tally.ERP 9
■ Similarly, specify 1500 as Variable Pay for Vijay Kumar and press Enter
68
Processing Payroll in Tally.ERP 9
Press Alt+S to pass the above voucher in the Voucher mode. This can be
used to keep track of Bill References. e.g. if there are more than one Salary
Advances, then the to track the recovered Amount from Employee’s salary
against the respective Advance given, this feature should be used.
Bank Transfer
Bank transfer refers to disbursement of Salaries directly into the Employee Bank Accounts by inti-
mating the Bank through a Payment advice. Tally.ERP 9 facilitates processing salaries through
Bank transfer with the help of predefined Salary process.
Example 3:
On 31st May, 2009 M/s. Spectrum Solutions disbursed Salaries payable for the month of
May 2009 through Bank Transfer. The attendance records displayed the following details:
69
Processing Payroll in Tally.ERP 9
On 31st May 2009, M/s. Spectrum Solutions processes Payroll for all the employees and
entitled the following employees for Variable Pay.
Particulars Vijay Kumar Rahul Mahesh Ajay
Variable Pay 500 - 1200
70
Processing Payroll in Tally.ERP 9
71
Processing Payroll in Tally.ERP 9
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
The completed Salary Payable Ledger creation screen is displayed as shown:
72
Processing Payroll in Tally.ERP 9
9. Press Enter (All the pay values are calculated for the applicable pay heads for each employee
grouped under the selected group).
10. Press Enter and specify the pay values for the pay heads defined as user-definable values
against each employee
■ Specify 1200 as Variable Pay for Ajay
■ Specify 500 as Variable Pay for Vijay Kumar
The completed Payroll Voucher for the month of May 2009 is displayed as shown:
73
Processing Payroll in Tally.ERP 9
After passing the above entry, the salaries payable for the month of May 2009 are transferred to
the Salary Payable Ledger, at the time of payment of salaries, the amount is reversed.
Example 4:
On 31st May 2009, M/s. Spectrum Solutions paid the salaries due for the month of May
2009.
Before passing the payment voucher, necessary Bank Accounts should be created. To make the
Salary payment, follow the steps given below:
74
Processing Payroll in Tally.ERP 9
4. Press Enter and the employee payroll details will appear by default.
5. Enter the details of the transactions in the Narration field
75
Processing Payroll in Tally.ERP 9
The unpaid salary will remain as outstanding in the Salary payable account and can be auto-filled
in the payment voucher as and when the actual payments are made.
□ If any cash disbursements are made prior to the payment voucher entry,
after using the Auto-Fill facility, select the unpaid salaries and enter zero
(0) in the amount payable.
□ If salaries are disbursed by cheque, select individual employee in the
Auto Fill Employee Filter and print the cheque for the payment voucher.
You have to create separate payroll payment entries for each employee.
76
Lesson 4: Accounting for Employer PF
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
The Employees' Provident Funds and Miscellaneous Provisions Act is a social security legislation
which administers provident fund, family pension and insurance to employees. The Act covers
three schemes, namely; PF (Provident Fund scheme), EPS (Employees’ Pension Fund Scheme),
EDLI (Employees Deposit Linked Insurance scheme).
Under the Employees’ Provident Fund scheme, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance, cash value of food conces-
sion and retaining allowance (if any), payable to employees per month. The contribution rate is
10% in the case of the following establishments:
□ Any covered establishment with less than 20 employees
□ Any sick industrial company as specified in the relevant section of Sick Industrial Compa-
nies (Special Provisions) Act, 1985 and which has been declared as such by the Board for
Industrial and Financial Reconstruction
□ Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and
□ Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar
gum Industries/ Factories.
The Contribution payable by the Employer is not to be deducted from the wages of the employee.
However, the employer has to deduct employee's share from their Salaries and pay the same in
EPF scheme. The deduction can be made only from the wages pertaining to a period for which
contribution is paid. However, if there is an accidental omission, the amount can be recovered
later.
77
Accounting for Employer PF Contributions
Out of the employer's contribution of 12% or 10%, the Employer's contribution of 8.33% is
diverted to Employees' Pension Scheme and the balance is retained in the EPF scheme. On
retirement, the employee gets his full share plus the balance of Employer's share retained to his
credit in the EPF account.
Once an establishment is covered under PF, all its departments and branches are covered, irre-
spective of where they are located.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Provident Fund.
78
Accounting for Employer PF Contributions
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions processed Provident Fund contribu-
tions for the month of April 2009 and paid the amount in full to EPFO.
79
Accounting for Employer PF Contributions
3. In the field Statutory Pay Type, select EPS Account (A/c No. 10) as shown
4. Specify the Group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. By default the Calculation Type is set to As Computed Value and Calculation Period as
Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
□ In the Computation Info section,
■ Select On Specified Formula in the Compute field
■ Press Enter, the Compute subscreen appears
■ In the Compute Sub screen,
80
Accounting for Employer PF Contributions
■ Select Basic Pay as the Add Pay Head function from the list of Pay Heads as shown.
81
Accounting for Employer PF Contributions
The completed Employer EPS @ 8.33% Pay Head Creation screen is displayed as shown:
82
Accounting for Employer PF Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. Select Normal Rounding as the Rounding Method and 1 as the rounding Limit and press
Enter
8. In the Computation Info section,
□ Select On Specified Formula in the Compute field
□ Press Enter and the Compute On subscreen displays
□ In the Compute sub-screen,
■ Select Employee’s PF Contribution @ 12% from the List of Pay Heads as the Add
Pay Head function and press Enter
■ Select Subtract Pay Head in Function and under Pay Head select Employer EPS @
8.33% from the List of Pay Heads.
83
Accounting for Employer PF Contributions
84
Accounting for Employer PF Contributions
The completed Employer EPF @ 3.67% Pay Head Creation screen is displayed as shown:
Alternatively, you can also define the criteria for computation of Employer PF
Contribution @ 3.67% Pay head, by selecting Basic Pay in the Compute sub-
screen. and defining the percentage as 3.67%.
85
Accounting for Employer PF Contributions
4. Specify the group as Current Liabilities in the Under field and press Enter
5. Set Affect Net Salary to No
6. The Calculation Type is defaulted automatically as As Computed Value and Calculation
Period as Months
7. The Rounding Method is defaulted to Normal Rounding and 1 defaulted as the rounding
Limit
8. In the Computation Info section,
□ On PF Gross is selected automatically in the Compute field
□ Specify 1-4-2009 as the Effective From date
□ Specify 6500 in the Amount Upto column
□ Select Percentage as the Slab Type and specify 1.10% in the Value Basis field and press
Enter
86
Accounting for Employer PF Contributions
The completed PF Admin Charges @ 1.10% Pay Head Creation screen is displayed as shown:
87
Accounting for Employer PF Contributions
3. In Statutory Pay Type filed select EDLI Contribution (A/c No. 21) as shown
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ In the Compute field, On PF Gross is selected by default.
□ Specify 1-4-2009 as the Effective From date (In case of a revision in pay structure, you
can define the revised computation information for the given pay head, by giving the effec-
tive from date)
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column.
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.5% in the Value Basis field and press Enter
88
Accounting for Employer PF Contributions
The completed EDLI Contribution @ 0.5% Pay Head Creation screen is displayed as shown:
89
Accounting for Employer PF Contributions
■ Set Minimum Rs 2/Employee to Yes if you want the EDLI Admin Charges to be mini-
mum Rs. 2.
When the option Minimum Rs 2/Employee is set to Yes, the EDLI Admin
Charges for each employee is minimum Rs. 2 or actual value as calculated.
When this option is set to No the EDLI Admin Charges are calculated as per
the specified formula.
4. Specify the group as Current Liabilities in the field Under and press Enter
5. Set Affect Net Salary to No
6. In the Computation Info screen,
□ On PF Gross is selected in the Compute field, by default
□ Specify 1-4-2009 as the Effective From date
□ The From Amount column is automatically skipped, assuming it to be zero. Enter 6500 in
the Amount Upto column
□ Select Percentage as the Slab Type from the List of Slabs
□ Specify 0.01% in the Value Basis field and press Enter
90
Accounting for Employer PF Contributions
The completed EDLI Admin Charges @ 0.01% Pay Head Creation screen is displayed as
shown:
91
Accounting for Employer PF Contributions
92
Accounting for Employer PF Contributions
93
Accounting for Employer PF Contributions
Similarly, include Employee Contribution Pay Heads in the Salary Details Masters of other
employees.
□ It is necessary to include Employer Contribution Pay Heads (i.e.,
Employer PF and Employer Pension Fund Pay Heads in the Salary
Structure of the Employee, to automate the Computation of Employer
PF Contribution on the basis of payments made to Employees.
□ While, including the Employer Contribution Pay Heads in the Salary
Details master, the order of precedence in which the Pay Heads are
included must on the basis of their calculation criteria i.e.,
i. Earning Pay Heads
ii. Deduction Pay Heads
iii. Professional Tax or Income Tax Pay Heads (if any)
iv. Employee PF Contribution Pay Heads
v. Employer PF Contribution Pay Heads
vi. Gratuity (Gratuity is calculated on Basic Pay + DA, hence Gratuity Pay
Head can be sequenced in the Salary details of an Employer in any
order after Earnings Pay Heads).
94
Accounting for Employer PF Contributions
Tally.ERP 9 provides the following predefined processes that will help in process-
ing Payroll transactions:
i. ESI Contribution: This process is selected to automate computation
of Employer ESI Contribution.
ii. PF Contribution: This process is selected to automate computation
of Employer PF Contribution
iii. Salary: This process is selected to automate computation of Salaries
payable to Employees.
■ Specify 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Select Primary Cost Category in the Employee Category field
■ Select All Items as Employee/ Group field (To process, for a particular group /
Employee select the respective Employee / group, as required)
95
Accounting for Employer PF Contributions
■ Select PF Payable Ledger from the list of Ledger Accounts drop down in the Payroll
Ledger field as shown
The values for the Employer PF contributions are prefilled in the Payroll Voucher for PF Contribu-
tion process.
96
Accounting for Employer PF Contributions
97
Accounting for Employer PF Contributions
98
Accounting for Employer PF Contributions
99
Accounting for Employer PF Contributions
■ Select PF Admin Charges @ 1.10% Ledger in the Admin Charges (A/c No. 2) field
as shown
Figure 4.21 Employer’s Other Charges screen – Admin Charges Ledger Selection
■ Similarly, select EDLI Contribution @ 0.5% and EDLI Admin Charges @ 0.01% in
the EDLI Contribution (A/c No. 21) and EDLI Admin Charges (A/c No. 22) fields
respectively.
100
Accounting for Employer PF Contributions
■ Press Enter
4. Type the details of the transaction in the Narration field
101
Accounting for Employer PF Contributions
To process the payment of Provident Fund, follow the steps given below:
102
Accounting for Employer PF Contributions
■ Select PF Challan in the Process for field from the Process List screen
■ Enter 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
■ Select HDFC Bank in the Bank / Cash Ledger field
■ Select PF Payable Ledger in the Payroll Ledger field
4. Press Enter to prefill PF Payable Amount in respect of Employer Contributions during the
relevant month
103
Accounting for Employer PF Contributions
104
Accounting for Employer PF Contributions
5. Press Enter again, to prefill the amount of Employee Contributions during the relevant
month
105
Accounting for Employer PF Contributions
6. Press Enter thrice again, to prefill EDLI Admin Expenses, EDLI Contribution and PF Admin
Charges during the selected month as shown:
106
Accounting for Employer PF Contributions
107
Accounting for Employer PF Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
The printed PF Combined Challan for the month of April 2009 of M/s. Spectrum Software
Solutions is displayed as shown:
108
Lesson 5: Accounting for Employer ESI
Contributions
Lesson Objectives
On completion of this lesson, you will be able to
ESI Contribution refers to the amount payable to the Corporation by the Principal Employer in
respect of Employees and comprises of the amount payable by the employee as well as the
employer.
The employer is required to calculate and remit ESI Contributions comprising of employers' share
and employees' share on or before the 21st of the subsequent month in respect of salaries of the
related month. The Principal Employer should pay the Employer’s share of contribution @ 4.75%
in respect of every employee whether employed directly or through an immediate employer. And
the Employee’s share @ 1.75% has to be recovered by making a deduction from their wages for
the respective salary/wages period.
In case, if the employee is drawing upto Rs. 70/- as daily average wage, he is exempt from
payment of his share of contribution. However, the employer has to pay employer’s share of
4.75% of the Salary payable to the employees.
As discussed earlier, the statutory features viz., EPF & ESI etc., are required to be configured in
F11: Statutory & Taxation Features. In this section, we will discuss, recording of transactions
related to computation and contribution of Employee State Insurance.
109
Accounting for Employer ESI Contributions
Illustration 1:
On 1st June 2009, the list of new joinees with their Salary details are given below:
Employee Name Department Date of Joining
Suresh Administration 1-6-2009
Rajesh Sales 10-6-2009
The Salary details for the above new employees are listed in the table below:
Pay Head Suresh rajesh
Basic Pay 4,500 5000
House Rent Allowance 40% 40%
Conveyance 600 800
Overtime Pay — —
Variable Pay User — defined
Gratuity Expenses (Provisional) Only for reporting purpose
Employee’s PF Contribution @ 12% Applicable based on Slab Rates
Employee’s ESI Contribution @ 1.75% Applicable based on Slab Rates
Profession Tax Applicable based on Slab Rates
The Attendance details for the month of June 2009 are given as shown:
Attendance/ Production Vijay Rahul Mahesh Ajay Suresh Rajesh
Types Kumar
Present Days 26 21 20 22 23 21
Overtime hours 120 Min 600 Min
The Variable Pay details for the month of June 2009 are given as shown:
Particulars Vijay Rahul Mahesh Ajay Suresh Rajesh
Kumar
Variable Pay 0 0 0 0 0 0
110
Accounting for Employer ESI Contributions
4. Specify the group as Indirect Expenses in the Under field and press Enter
111
Accounting for Employer ESI Contributions
112
Accounting for Employer ESI Contributions
□ Specify 1-4-2009 in the Effective From date field and press Enter, the From Amount col-
umn is automatically skipped, assuming the amount to be zero
□ The Amount Upto field is skipped and automatically defaulted with the amount specified in
the Payroll Statutory Details screen in F11: Satutory & Taxation
□ Select Percentage in the Slab Type field
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
In Tally.ERP 9, the Earning Payheads which are selected for computation of Employer ESI contri-
bution are listed in the Specified Formula for easy reference. You can alter / modify the criteria for
calculation, by pressing Enter in the Compute field and redefining the Function Pay components.
□ Specify 4.75% as the Value Basis Percentage in the Value Basis field and press Enter
□ Press Enter to accept
113
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Pay Head Creation screen is displayed as shown:
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
1. Type ESI Payable in the Name field
2. In the Pay Head Type field select Not Applicable
3. Specify the group as Current Liabilities in the Under field and press Enter
114
Accounting for Employer ESI Contributions
115
Accounting for Employer ESI Contributions
Similarly, include Employer ESI @ 4.75% Pay Head in the Salary details of all other Employees.
116
Accounting for Employer ESI Contributions
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Select Primary Cost Category as Employee Category field
□ Select All Items in the Employee/ Group field
117
Accounting for Employer ESI Contributions
118
Accounting for Employer ESI Contributions
The completed Employer ESI Contribution Voucher Creation screen is displayed as shown:
Payment of ESI
In Tally.ERP 9, once the process for Employee and Employer contributions to Employee’s state
Insurance is implemented in the manner as discussed in earlier sections, the total amount
payable to ESIC comprising of Employee’s Contribution as well as Employer’s contribution to ESI
is accumulated separately in the ESI Payable Ledger. At the time of making the payment to ESIC,
a payment voucher is required to be passed.
119
Accounting for Employer ESI Contributions
To process the payment of ESI and generate ESI Challan, follow the steps given below:
□ Specify 1-6-2009 and 30-6-2009 in the From and To Date fields respectively
□ Specify 30-6-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
□ Select Primary Cost Category in the Employee Category field
□ Select All Items in the Employee/ Group field
120
Accounting for Employer ESI Contributions
121
Accounting for Employer ESI Contributions
122
Accounting for Employer ESI Contributions
6. Press Enter to prefill the Employer’s ESI Contribution amount for the eligible Employees
123
Accounting for Employer ESI Contributions
7. Press Enter again, to prefill the Employee’s ESI Contribution amount against the eligible
Employees
Figure 5.14 ESI Payment Voucher with both Employee and Employer Contributions
124
Accounting for Employer ESI Contributions
The completed ESI Payment Voucher for the month of June 2009 is displayed as shown:
125
Accounting for Employer ESI Contributions
□ In the Voucher printing screen, select Yes in the Print Challan field
□ Press Enter to Print
126
Accounting for Employer ESI Contributions
The printed ESI Payment Challan for the month of June 2009 of M/s. Spectrum Software
Solutions is as shown:
127
Lesson 6: Payment of Professional Tax
Lesson Objectives
On completion of this lesson, you will be able to:
Professional Tax is applicable to those individuals or professionals in India who are involved in
any profession or trade. The state government of each state governs and administers the levy and
collection of Professional Tax in the respective State.The state is empowered with the
responsibility of structuring as well as formulating the professional tax criteria for the respective
state. Professional tax is charged on the income of Individuals, profits of business or gains in
vocations as per the list II of the Indian Constitution.
In India, Professional Tax slabs vary from state to state and some of the states have formulated
different professional tax slabs for men, women and senior citizens. The rates depend upon
profession, years in the profession and the amount of income or turnover and so on. In Karnataka,
the professional taxes leviable are as follows:
S.No Salary or wage earners whose salary or wage or Tax Amount
both, as the case may be, for a month is,
(a) Less than Rs.5000 Rs. 0 Per month
(b) Not less than Rs. 5,000 but less than Rs.8,000 Rs. 60 Per month
(c) Not less than Rs.8,000 but less than Rs.10,000 Rs.100 Per month
(d) Not less than Rs.10,000 but less than Rs.15,000 Rs.150 Per month
(e) Rs. 15,000 and above Rs.200 Per month
128
Payment of Professional Tax
The creation of Professional Tax Pay Head is discussed in detail in the Creation of Masters
chapter and the procedure to process Professional Tax Deduction from Employee Salaries is
discussed in detail in Processing Payroll in Tally.ERP 9 Chapter. In this section, we will discuss
the recording of transactions related to payment of Professional Tax.
Illustration 1:
On 30th April, 2009 M/s. Spectrum Software Solutions made a payment of Professional Tax
for the month of April 2009.
The same is accounted as shown:
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers
1. Press F5 for Payment Voucher
2. Press F2, specify the date as 30-04-2009 and press Enter
3. Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
4. In Employee Filters screen,
■ Select Professional Tax Payment from the Process List
■ Specify 1-4-2009 and 30-4-2009 in the From and To date fields respectively
■ Specify 30-4-2009 in the Voucher Date field (This field is prefilled, if the voucher date is
specified during Voucher Entry)
■ Select Primary Cost Category in the Employee Category field
■ Select All Items in the Employee/ Group field
129
Payment of Professional Tax
130
Payment of Professional Tax
■ Press Enter to accept the screen and go back to the Payment Voucher screen
■ Press Enter to prefill the Professional Tax amount in the Payment Voucher
131
Payment of Professional Tax
132
Lesson 7: Tracking of Salary Advances / Loans
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 helps you track Salary Advance / loans given to employees and provides the flexibility
to specify simple to complex criteria for Recovery of Salary Advances or loans viz., Flat or manual
deduction and provision of lumpsum loan recovery and so on. Tally.ERP 9 also allows you to
generate a Month wise break-up report for the amount of loan disbursed, recovery of instalments
made and balance amount of Loan / Salary advance. Further, you can also use the Interest Cal-
culation feature of Tally.ERP 9 to compute interest on loans to employee etc.
In Tally.ERP 9, tracking of Salary Advances / Loans paid to employees follow the steps given
below:
□ Creation of Masters
□ Modify / Alter Salary Details
□ Payment of Salary Advance
□ Recovery of Salary Advance
Creation of Masters
Tally.ERP 9 allows you to create different ledgers for different types of Loans / Salary Advances.
Create the following ledger:
Ledger Pay Head Type Under
Staff Salary Advance Loans and Advances Loans and Advances (Asset)
133
Tracking of Salary Advances / Loans
The completed Staff Salary Advance Ledger creation screen is displayed as shown:
The Calculation Type can be taken as Flat Rate if you wish to deduct the
Loan Amount in Flat installments (EMI’s). In this case the Pay Head should
be removed from the Pay Structure after the entire amount is recovered from
the Employee’s salary.
134
Tracking of Salary Advances / Loans
Go to Gateway of Tally > Payroll Info. > Salary Details > Alter
1. Select Vijay Kumar from the List of Groups / Employees and press Enter, the Salary
Details Alteration screen appears
2. In the Salary Details Alteration screen,
3. Tab down to the last line and select Staff Salary Advance ledger in the Pay Head field
4. Select End of List and press Enter
135
Tracking of Salary Advances / Loans
Illustration 1:
On 2nd July, 2009 M/s. Spectrum Software Solutions paid Salary Advance to the following
Employees with the mode and amount of recovery.
136
Tracking of Salary Advances / Loans
2. In the Dr field, select Staff Salary Advance ledger from the list of ledgers
3. Specify 13000 in the Dr Amount field and press Enter, the Cost Allocations for subscreen
appears
4. In the Cost Allocations for subscreen,
□ Select Primary Cost category in the Employee Category field
□ Select the required Employee (Rahul) from the list of Cost Centres and press Enter
137
Tracking of Salary Advances / Loans
138
Tracking of Salary Advances / Loans
139
Tracking of Salary Advances / Loans
140
Tracking of Salary Advances / Loans
□ Similarly, tab down to Staff Salary Advance ledger field of Rajesh and specify 1500 as
the amount to be deducted
141
Tracking of Salary Advances / Loans
If there are multiple Loans given to the Employees and if you wish to keep a
track of recovered loan amount against the Loan given, then you need to
pass a separate payroll voucher in ‘As Voucher’ format, as the bill-wise
details screen won’t appear in the ‘As Pay Slip’ format.
142
Lesson 8: Accounting for Pay Revision &
Arrears
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a facility to process Arrears / Increments for a current Period as well as for a
prior period. It allows you to compute Arrears for a retrospective period, by defining the effective
date of such revisions or increments. Consider the following scenarios to understand the steps
involved in processing Salary revisions / Arrears calculation in Tally.ERP 9.
□ Salary Revision / Arrear Calculation for Prior Period
□ Salary Revision / Arrear Calculation for Current Period
Illustration 1:
On 5th August, 2009 M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such a revision is effective from 1st May 2009.
143
Accounting for Pay Revision & Arrears
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee, so as to take into consideration the declared Salary Revision / arrear
payment for/from the relevant period.
144
Accounting for Pay Revision & Arrears
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 50000
□ Tab down to Conveyance Pay Head and alter the amount to 2000
□ Press Enter to go to the End of List
The completed Salary Details screen is displayed as shown:
145
Accounting for Pay Revision & Arrears
■ Press Enter to automatically prefill the salary arrear amounts for the selected period
146
Accounting for Pay Revision & Arrears
147
Accounting for Pay Revision & Arrears
The completed Salary Arrears Payment voucher of Mahesh for the period from May 2009 to July
2009 is displayed as shown:
The Salary Arrears / Increments may result in increase in Earning Pay com-
ponents which in turn may result in an increase in the tax liability i.e., an
increase in Basic Pay will result in an increase in HRA and such additional
income will be liable to Income Tax or Payroll taxes viz., PF, ESI and PT. The
procedure to make payments of PF, ESI or PT has been discussed in the
previous chapters.
148
Accounting for Pay Revision & Arrears
Illustration 2:
On 15th August 2009, M/s. Spectrum Software Solutions revised the Salaries for the
following Employees. Such revision is effective from the current month i.e., August 2009.
Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary
Details of the Employee to take effect the declared Salary Revision / arrear payment for/from the
relevant period.
149
Accounting for Pay Revision & Arrears
StartType Options
□ Copy From Parent Value: This option is selected, when the pay struc-
ture details of the Parent group (to which Employee Group, the
employee is grouped under or falls) is required to be prefilled in the Sal-
ary details master.
□ Copy From Previous Value - This option is selected, when the pay
structure details of the Employee for a preceeding period is required to
be prefilled for a future period, in the Salary details master.
□ Start Afresh: This option is selected, when the pay structure details of
the Employee has to be created newly.
□ Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of
the preceeding period for the specified period
□ Press Enter on Basic Pay Pay Head and alter the amount to 11000
□ Press Enter on HRA Pay Head and alter the percentage to 30% (To alter the percentage,
ensure in F12: Configure, Allow to Override Slab Percentage is set to Yes)
□ Tab down to Conveyance Pay Head and alter the amount to 2000
150
Accounting for Pay Revision & Arrears
151
Accounting for Pay Revision & Arrears
152
Accounting for Pay Revision & Arrears
You may process Employer and Employee’s contribution to Provident Fund and Employee’s State
Insurance and payment of Profession Tax in the manner as discussed in the earlier chapters.
153
Lesson 9: Processing Payroll for Contract
Employees
Lesson Objectives
On completion of this lesson, you will be able to:
Tally.ERP 9 provides a simplified process for tracking and processing salaries for casual and
contract workers and helps in the generation of contract related reports. Tally.ERP 9 allows you to
process salaries for contractual employees for their services rendered during the agreed tenure.
You may compute salaries on hourly or production basis as agreed upon, by defining the required
criteria for the Pay components.
In this Chapter, we will discuss the recording of transactions related to computation of salaries for
Contractual employees.
Illustration 1:
On 5th August 2009, M/s. Spectrum Software Solutions hired two persons on contract.
154
Processing Payroll for Contract Employees
155
Processing Payroll for Contract Employees
156
Processing Payroll for Contract Employees
157
Processing Payroll for Contract Employees
158
Processing Payroll for Contract Employees
The completed Salary Details creation screen for James is displayed as shown.
159
Processing Payroll for Contract Employees
The completed Attendance Voucher for the Contract Employees is displayed as shown:
160
Processing Payroll for Contract Employees
Process Payroll
On 31st August 2009, M/s. Spectrum Software Solutions processed salaries for the
contract employees through Cash. The Local Conveyance for August 2009 is as follows:
161
Processing Payroll for Contract Employees
The completed Payroll Voucher for Contract Employees for the month of August 2009 will
appear as shown:
162
Lesson 10: Payroll Reports
Payroll Reports help you ascertain the payroll expenses for a specified month or for year-to-date
(YTD) transactions for a particular employee/ group along with the Attendance and Production
details. You can also view the statutory forms required for Provident Fund and Employee State
Insurance. In Tally.ERP 9, the Payroll reports can be broadly categorized into two viz.,
□ Payroll Reports
□ Payroll Statutory Reports
163
Payroll Reports
Payroll Reports
In Tally.ERP 9, you can generate the following Payroll related reports.
164
Payroll Reports
In Tally.ERP 9 Payroll, the Pay Slip can be configured to vertically display the details of attend-
ance, in terms of attendance or production, with Year to Date Values (YTD).
165
Payroll Reports
Some of the options in F12: Configuration screen, are by default set to Yes
viz., Show Employee Details, Show Attendance/Production Details,
Show Attendance/Production Groups, Remove Zero Entries for Attend-
ance/Production also based on the Payroll Features / Payroll Statutory
features enabled during voucher entry.
166
Payroll Reports
167
Payroll Reports
The Pay Slip now displays the Attendance with Present / Overtime details, Year to Date balance,
and so on. To view the Pay Slip in vertical form, press F12: Configure and set Show Vertical Pay
Slip to Yes.
168
Payroll Reports
□ You can view additional information in the Pay Slip, by pressing Alt+F1.
169
Payroll Reports
The voucher number, date and the number of attendance or payroll records are displayed as
shown in the above image. This is very useful when multiple attendance/payroll vouchers are
entered for the same payroll period. You can drill down to the voucher level for reference or to
effect an alteration by pressing Enter on the required record.
Period Button – By default, the Pay Slip for the current month is displayed.
However, you can change the period by pressing F2: Date and defining the
required date. This button can be used to display multiple period payroll infor-
mation to view/print a consolidated Pay Slip.
Employee Button – From the existing Pay Slip of an employee, you can tog-
gle between employees by pressing F4: Employee.
170
Payroll Reports
Some of the configuration in the Printing screen, are similar to F12: Configure and can be config-
ured from either of the screens. Additionally, the Show Authorised Signatory option is available
in the above screen.
□ In the Printing Pay Slip screen, press Backspace and enable the required option as
required
□ Press Enter to Print
171
Payroll Reports
172
Payroll Reports
173
Payroll Reports
174
Payroll Reports
175
Payroll Reports
The Pay Slip sent by e-mail when viewed from the mail box of the employee is as shown:
176
Payroll Reports
The Pay Slip can also be exported to pdf, jpeg or other formats as per the requirement.
177
Payroll Reports
E-mail IDs
To check the E-Mail IDs entered,
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip > E-
Mail IDs
The above report displays the Employees’ for whom the E-Mail iD’s are either not entered or
incorrectly entered. You can press Ctrl+Enter to add or alter the E-Mail ID’s for the required
Employees.To view the E-Mail ID’s for all Employees you can press F5: All Items from the above
report.
178
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip >
Multi Pay Slips
179
Payroll Reports
□ Select the appropriate Employee Category and Employee Group in the Employee FIlters
subscreen as shown:
180
Payroll Reports
Tally.ERP 9 provides the flexibility to E-Mail/Print or Export all Pay Slips from the above screen
using the standard Alt+M/Alt+P/Alt+E buttons from the above screen.
The options in the email/print and Export screens are similar to Single Pay Slip report already dis-
cussed.
Pay Sheet
A Pay Sheet is a columnar report which displays the Group/Department-wise break-up of employ-
ees’ earnings and deductions for the selected month.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Sheet
□ Select the All Items in the Name of Employee Category field
□ Select All Items in the Name of Employee / Group as shown:
181
Payroll Reports
You can further configure the Pay Sheet to display the net amount, column subtotals, Category/
Group subtotals, user-defined Pay Slip names, Employee names and sort it by Employee number
in the F12: Configure.
The F12: Configuration from the Pay Sheet screen is displayed as shown:
182
Payroll Reports
183
Payroll Reports
The Pay Sheet with the above configurations will appear as shown:
184
Payroll Reports
To view the Pay Sheet till date with Category and Group Totals,
□ Press Alt+F2 and change period as 01-04-2009 to 31-08-2009
□ Press F12: Configure and set Show Category/Group Total to Yes
The Pay Sheet with Category and Group Totals displays is displayed as shown:
Button options:
□ Detailed/Condensed Button – This button (Alt+F1) is used to toggle
between the detailed and condensed modes of reporting.
□ Period button – This option (F2) is used to define the periodicity of the
report, i.e. for a day, week, fortnight, month, quarter, half-year, year or
any given period.
185
Payroll Reports
186
Payroll Reports
The Pay Sheet for the selected Employee Group is displayed as shown:
You can also drill down from the above report to the voucher level, by highlighting the pay heads
column of the required employee and pressing Enter.
Button Options:
□ Employee Filter Button – By using the Employee Filter button
(Ctrl+F7), view the individual employee/ Employee group pay sheet
report.
□ New Column – This option (Alt+C) is used to add a new column for any
other Pay Head, which is not part of the pay structure.
□ Alter Column – This option (Alt+A) is used to replace an existing col-
umn in the report with another Pay Head column.
□ Delete Column -– This option (Alt+D) is used to delete an existing col-
umn in the report.
You can also print the Pay Sheet, by pressing Alt+P and specifying the required options in the
Pay Sheet Print configuration screen.
187
Payroll Reports
188
Payroll Reports
While printing the Pay Sheet, you can choose to Increase the Line Height (for each employee
line) if you want to create space for the employee’s signature or to affix a stamp. Such a Pay
Sheet can also be used for the salary disbursement register.
189
Payroll Reports
□ Press Alt+P to print Pay Sheet and set the Increase Line Height for Signature/ Stamp?
field to Yes
The printed Pay Sheet with space for signature/ stamp is as shown.
Figure 10.28 Printed Pay Sheet with space for Signature/ Stamp
190
Payroll Reports
Figure 10.29 Printed Pay Sheet with space for Signature/ Stamp – Page 2
191
Payroll Reports
You can also E-mail or use Export Pay Sheet Report in the manner as
discussed in Pay Slip Section. The navigation steps for E-mailing and
Exporting Pay Sheet is similar to the steps explained in Pay Slip Report.
Payroll Statement
A Payroll Statement is a columnar report which displays Group/Department-wise employees’
break-up of selected earnings or deductions, for a specified month or period.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payroll
Statement
□ Select the required pay head and press Enter
The Payroll Statement for Basic Pay Earnings Head for the month of April 2009 is displayed as
shown:
192
Payroll Reports
You can further configure the Payroll Statement to display the Employee groups and categories,
category/group subtotals, grand totals, user-defined Pay Slip names, employee names, employee
bank details, sort it by Employee number, by pressing F12: Configure
□ Enter the details in F12: Configuration screen as shown
The F12: Configuration screen is displayed as shown:
193
Payroll Reports
194
Payroll Reports
□ You can also Email or Export Payroll Statement in the manner as dis-
cussed in Pay Slip Section.
□ The Button Bar options in Payroll Statement are same as in the Pay-
sheet report.
To view Payroll Statement for other Pay Heads, you can either select other Pay Head(s) in the
manner as discussed or you may also include other Pay Heads in the above report for compara-
tive analysis or to obtain a cumulative value, by pressing Alt+C and selecting the required Pay
Head(s).
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Payroll Reports
The Payroll statement with additional Pay Heads will be displayed as shown:
Payment Advice
A Payment Advice is an intimation letter containing the details of employees with their bank
account numbers issued to the banker to transfer a specified sum (salaries earned) to the
employees’ bank accounts.
As discussed earlier, the contents of the Payment Advice can be altered in F12: Payroll Configu-
ration as per the employer’s requirements.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Payment
Advice
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Payroll Reports
197
Payroll Reports
The printed Payment Advice for May 2009 will appear as shown:
198
Payroll Reports
□ The Payment Advice will be available only when the Salaries are proc-
essed through Bank Transfer and a Payment voucher is passed for the
salaries payable for a given month/period.
□ You can also Email or Export Payment Advice in the manner as dis-
cussed in Pay Slip Section.
Payroll Register
A Payroll Register is a month-wise transaction summary report which displays the number of
payroll vouchers passed during a particular month. Additional information can be appended into
the Payroll Register, by inserting a new column with the required voucher type i.e., Attendance,
Journal, Purchases, Sales and so on.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Payroll
Register
The Payroll Register is displayed as shown:
□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown.
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Payroll Reports
Tally.ERP 9 allows you to drill down to the voucher level from the above display for any kind of
verification. Use the Enter key on the required month/period to drill down to the required level.
200
Payroll Reports
You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Employee Pay
Head Breakup
□ Select the required Pay Head from the List of Pay Heads and press Enter
201
Payroll Reports
The Employee Breakup of Pay Head for Basic pay screen is displayed as shown:
202
Payroll Reports
You can also Email or Export Employee Breakup of Pay Head Report in
the manner as discussed in Pay Slip Section.
To drill down to the Employee Monthly Summary report from the Employee Summary report,
□ Highlight the required employee and press Enter
203
Payroll Reports
To further drill down to Employee Voucher level screen from the Employee Monthly Summary
report, press Enter on the required month.
204
Payroll Reports
You can further drill down to the transaction level, by selecting the required transaction and
pressing Enter.
The Employee Breakup of Pay Head report can be viewed with additional Pay Heads, by
pressing Alt+C and adding the required Pay Head and by pressing Alt+N for multiple periods.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll >Pay Head
Employee Breakup
205
Payroll Reports
206
Payroll Reports
To further drill down to view the Breakup of Employee report for each ledger from the above
displayed report, select the required ledger and press Enter.
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Payroll Reports
The Breakup of Employee screen for a selected ledger (Basic Pay) is displayed as shown:
You can drill down further to view the Monthly Summary of the selected ledger and the Employee
Voucher report.
The Pay Head Employee Breakup report can be viewed with additional employees, by pressing
Alt+C and adding the required Employee and for multiple periods, by pressing Alt+N.
Attendance Sheet
An Attendance Sheet is a columnar report which displays the details of Attendance/ Production
types with the number of attendance/ production units achieved during a particular month or
period.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Sheet
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Payroll Reports
You may configure the above report with additional details, by pressing F12:Configure and
enabling the following options, as required.
The completed F12: Configuration screen is displayed as shown:
209
Payroll Reports
210
Payroll Reports
Attendance Register
An Attendance Register is a month-wise transactions summary report which displays the number
of attendance vouchers passed during the month. You can append additional information by
inserting a new column with the required voucher type, i.e. Payroll, Journal, Purchases, Sales and
so on.
Go to Gateway of Tally > Display > Payroll Reports > Attendance Register
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Payroll Reports
□ Press F12: Configure and set the Appearance of Names and the Periodicity to use as
shown
The F12:Configuration options in Attendance Register are as displayed below:
Tally.ERP 9 allows you to drill down to the voucher register, from the Attendance Register screen
for any kind of verification.
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Payroll Reports
You may further drill down to voucher level, by pressing Enter on the required transaction.
Expat Reports
Expat Reports provide information about regular as well as contractual employees, working
abroad on a short/ long tenure or on assignment. They capture all the relevant information in
respect of passport, visa and contract details along with the date of joining, the issuing country
and the expiry date. In Tally.ERP 9, the following Expat reports are available.
□ Passport Expiry
□ Visa Expiry
□ Contract Expiry
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Passport Expiry
213
Payroll Reports
214
Payroll Reports
□ Show All Employees – Set this option to Yes, to view the passport
details of all employees. It includes information on expired and unex-
pired passport details. If this option is set to No, Show Expiry in days will
be available.
□ Show Expiry in days – Set this option to Yes, to enter the expiry days.
When Show All Employees and Show Expiry in days options are set
to No, Tally.ERP 9 filters only those employee passport details, which
are nearing the expiry date. If this option is set to Yes, Expiry in next n
days will be available.
□ Expiry in next n days – Set this option to Yes, to get the passport
expiry details for the next specified number of days. On entering the
number of days, Tally.ERP 9 filters the employee passport details which
are likely to expire within the specified period (number of specified days).
If this option is left blank, the report will denote the current date (last date
of voucher entry).
□ Show Employee Number – Set this option to Yes, to display the
employee number of employees in the report.
□ Appearance of Names – Select the appropriate name style to appear in
the Passport Expiry Report (Alias (Name), Alias only, Name (Alias),
Name only).
□ Sorting Method — Sort employee details based on Employee Number,
Passport Expiry Date (Ascending/Descending), or by the default
method.
□ Show Employee Email Id – Set this option to Yes, to view the email ids
of employees.
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Visa Expiry
215
Payroll Reports
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
216
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Expat Reports > Contract Expiry
The F12: Configuration and Button Options are the same as shown in
Passport Expiry Report.
217
Payroll Reports
218
Payroll Reports
You can view Payroll Statutory reports either from the Statutory Reports menu or Payroll Reports
menu i.e., Gateway of Tally > Display > Statutory Reports > Payroll Reports or Gateway of
Tally > Display > Payroll Reports > Statutory Reports
In this section, we will generate each of the above mentioned forms / report and understand the
purpose and information to be furnished.
i. PF Computation Report
The PF Computation Report provides the summary of Amount Payable and amount paid in
respect of PF for a given period comprising of Employer Contributions, Employee Deductions and
Employer’s Other charges, if any. To view PF Computation Report, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
219
Payroll Reports
The report, by default displays the summary of Employee’s Provident Fund, Employees’ State
Insurance and Professional Tax. You may however configure to display only details of Provident
Fund.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
220
Payroll Reports
To view detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
221
Payroll Reports
You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
ii. Form 5
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a)], a return is
required to be submitted in Form 5 within 15 days of the following month detailing the list of
Employees qualifying for membership to the Employees’ Provident Fund for the First time during
every month.
Form 5 is a monthly Returns to be submitted with the details of any new employee covered under
EPF. In Tally.ERP 9, you can generate Form 5 in the prescribed format containing the details of
the new joinees in the organisation for the selected month. To generate the PF Form 5 for the
month of June 2009, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 5
In the Payroll Statutory Print Configuration screen,
□ Specify 01-06-2009 and 30-06-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
222
Payroll Reports
223
Payroll Reports
In our case study, there are two new employees who have joined during the month of June 2009
and thus Form 5 contains the details of these employees.
224
Payroll Reports
iii. Form 10
In accordance with the Employees' Provident Funds Scheme,1952 [para 36 (2)(a) & (b), a Return
is required to be submitted in Form 10 within 15 days of the following month detailing the list of
members leaving service during the month.
Form 10 is a monthly Return to be submitted with the details of employees leaving the organisa-
tion. In Tally.ERP 9, on resignation or retirement or expulsion of any employee, the date of leaving
is required to be specified in the Employee master of such employee. The Date of Leaving option
in the Employee Master is available in the alteration mode. Form 10 contains the details of
Employees for whom the date of leaving is specified in the Employee Master.
You can generate Form 10 in the prescribed format containing the details of the employees who
have resigned in the selected month. To generate the PF Form 10 for the month of August 2009,
follow the steps given below.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 10
In the Payroll Statutory Print Configuration screen
□ Specify 01-09-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
□ Specify 30-09-2009 in the Date field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
225
Payroll Reports
226
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 12A
In the Payroll Statutory Print Configuration screen
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Specify the Name & Address of the Bank
□ Set Include VPF Account to No
□ Specify 2 in the Number of Contract Employees field
□ Press Enter to accept 0 in Number of Rest (Temporary Employees) field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
227
Payroll Reports
228
Payroll Reports
v. PF Monthly Statement
The PF Monthly Statement provides a summary of Employee wise monthly PF Employee Deduc-
tions and Employer Contribution amounts. To print the PF Monthly Statement, follow the steps
given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Monthly Statement
In the Payroll Statutory Print Configuration screen,
□ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee / Group field
□ Select Account Number as the Sorting Method
229
Payroll Reports
230
Payroll Reports
vi. Form 3A
As per the Employees' Provident Funds Scheme,1952 [para 35 & 42] and the Employees'
Pension Scheme 1995 (Para 19), a Form (Member’s Annual Contribution Card) showing month
wise recoveries towards EPF and Pension Fund in respect of a member for one financial year is
required to be furnished by the employer before 30th April of the following year.
Form 3A is a annual contribution card to be furnished for each employee in separate sheets to
EPFO. To print Form 3A, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 3A
In the Payroll Statutory Print Configuration screen
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Specify 28-02-2010 in the Date of Printing field
The completed Payroll Statutory Print Configuration screen is displayed as shown:
231
Payroll Reports
The next page will contain the Contribution Card in Form 3A for the next employee.
232
Payroll Reports
vii. Form 6A
As per the Employees' Provident Funds Scheme,1952 [para 43] and the Employees' Pension
Scheme 1975 [para 20], a Form (Consolidated Annual Contribution Statement) providing annual
contributions of each member of the establishment is required to be submitted by 30th April.
Form 6A is a vital form for compiling the annual Provident Fund statement of a subscriber. In
Tally.ERP 9, you can generate Form 6A in the prescribed format. To print Form 6A, follow the
steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
Form 6A
In the Payroll Statutory Print Configuration screen
□ Specify 01-03-2009 and 28-02-2010 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
The completed Payroll Statutory Print Configuration screen is displayed as shown:
233
Payroll Reports
234
Payroll Reports
235
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Provident Fund >
E-Return
□ Press Backspace and specify the details as shown:
The Out File Name can be changed with the .dbf extension to by default
export the form in the required format. Or the Form can be exported in the
Excel Format and renamed by changing the extension as .dfb.
236
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Computation
□ Press F2 and specify the period as 01-07-2009 to 31-07-2009 and press Enter
The report, by default displays summary of Employee’s Provident Fund, Employee’s State
Insurance and Professional Tax, you may however configure to display only details of Employee
State Insurance.
□ Press F12: Configure and enable/disable the following options as required
□ Press Enter
237
Payroll Reports
To view the detailed ledger wise information under each contributions / deductions head, press
Alt+F1.
238
Payroll Reports
You can further drill down to Employee Breakup of Pay Head report and from there to Employee
Vouchers and so on, by pressing Enter on the required ledger from the above screen.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 3
In the Payroll Statutory Print Configuration screen,
□ Specify 1-08-2009 and 31-08-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Select All Items in the field Gender
□ Type Bangalore in the Place field
□ Specify 31-08-2009 in the Date of Printing field
239
Payroll Reports
□ Type the Designation details of the person submitting the declaration form
The completed Payroll Statutory Print Configuration screen is displayed as shown:
240
Payroll Reports
241
Payroll Reports
242
Payroll Reports
The printed ESI Monthly Statement for August 2009 is displayed as shown:
iv. Form 5
As per Regulation 26, a Return of Contribution in Form 5 is required to be submitted to the appro-
priate Branch Office within 42 days of the expiry of the contribution period (i.e, 12th May or
November 11th of each year). Such return of contribution should be prepared in quadruplicate
and submitted separately for the main Code Number and each sub-code number.
243
Payroll Reports
The employer may make compliance from the parent unit and submit only one return in respect of
all the branches or may make compliance through their Branch Offices/ Sales Offices separately
in the Regions where such offices are located.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 5
In the Payroll Statutory Print Configuration screen
□ Specify 01-04-2009 and 30-09-2009 in the From and To fields respectively
□ Select All Items in the Employee Category field
□ Select All Items in the Employee/Group field
□ Select Account Number as the Sorting Method
□ Specify Bangalore in the Place Field
□ Specify 30-09-2009 in the Date of Printing field
□ Type the name of the Signatory in the Authorised Signatory Name field
□ Type the Designation details of the signing authority
□ In the Residential Address field provide the Home Address of Authorised Signatory
The completed Payroll Statutory Print Configuration screen for ESI Monthly Statement is
displayed as shown:
244
Payroll Reports
245
Payroll Reports
246
Payroll Reports
247
Payroll Reports
v. ESI Form 6
As per Regulation 32, a register of Employees covered under Employees State Insurance
Scheme, containing information regarding the Insurance No., dispensary, other occupational
details, Employer’s Share and month wise (under that particular Half Year) ESI details (i.e., Gross
wages, Number of working days and ESI Contribution for each employee) should be furnished. To
generate Form 6, follow the steps given below:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Employee State
Insurance > Form 6
248
Payroll Reports
249
Payroll Reports
250
Payroll Reports
251
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Computation Report
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Type Bangalore in the Place field
■ Specify 31-08-2009 in the Date of Printing field
252
Payroll Reports
253
Payroll Reports
The printed Professional Tax Computation report for the month of August 2009 will appear as
shown:
254
Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Professional Tax >
Statement
□ From the List of Ledgers drop down, select Professional Tax and press Enter, the Pay-
roll Statutory Print Configuration screen appears
□ In the Payroll Statutory Print Configuration screen,
■ Specify 01-08-2009 and 31-08-2009 in the From and To fields respectively
■ Select All Items in the Employee Category field
■ Select All Items in the Employee/Group field
■ Select Employee Name as the Sorting Method
The completed Payroll Statutory Print Configuration screen will appear as shown:
255
Payroll Reports
The printed Professional Tax Statement for August 2009 is displayed as shown:
256
Payroll Reports
You can view PT Computation Report from Gateway of Tally > Display >
Payroll Reports > Statutory Reports > Computation menu, detailing Pro-
fessional Tax collected and paid during a given period in the manner as
discussed in Provident Fund Computation Report section.
Gratuity Report
The Gratuity Report displays the provisional liability of an employer towards his employee in
respect of gratuity payable at the time of cessation of employment either by resignation, death,
retirement or termination.
The Gratuity Summary Report displays the gratuity amount payable in accordance with the pay
components and formulae defined in the ledger master, as discussed earlier. In Tally.ERP 9, the
Gratuity amount is calculated proportionately for eligible days in a year to the extent of completed
months of service.
You can view the Gratuity Report either from Statutory Reports menu or Payroll Reports menu i.e.,
Gateway of Tally > Display > Payroll Reports > Statutory Reports or Gateway of Tally >
Display > Statutory Reports > Payroll Reports.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Gratuity Report
257
Payroll Reports
The Gratuity Report for the Employees eligible for Gratuity is displayed as shown:
The above report displays the Gratuity Amount computed for each month for each Employee.
In order to ascertain the Gratuity payable amount, set Use for Gratuity to
Yes in the Pay Head master (i.e. Basic Pay, Dearness Allowance etc.)
258
Payroll Reports
The above report displays the details of all employees along with the Date of Birth, Date of Joining
and the Gratuity Eligible Salary, besides commenting on the total Gratuity liability as on date.
Tally.ERP 9 allows you to drill down to the Gratuity Details report from the above display.
□ Select the required employee and press Enter
259
Payroll Reports
Once the employee is deactivated (i.e., when the date of leaving is filled in the
Employee master), Tally.ERP 9 stops computing Gratuity for the deactivated
employee. If the tenure of service of such an employee falls below the eligible
slab for gratuity calculation, he/she will not be entitled for any gratuity amount.
However, in cases where the tenure of service is spread over more than one
eligible slab(s), he/she will be entitled to the sum total of all the slabs.
The above report displays the detailed Gratuity computation for all the slabs entered during the
Gratuity Pay Head Creation.
260
Getting Started with Income Tax
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Version: Getting Started with Income Tax/Tally.ERP 9 Series A Release 3.2/September 2011
Contents
Introduction .................................................................................................................................... 1
i
Introduction
Income Tax refers to the tax that is levied on the personal or business income as per the Income
Tax Act, 1961. The Tax which is levied on the Business Income for a firm or a corporate is referred
as Corporate Tax and will not be dealt in this book. This book covers the personal income which is
received as salary or professional fees. In particular, this book deals with the Income that origi-
nates from Salaries. To understand the Income Tax Act, it is important for you to understand the
basic terms used in the Act which are described one by one.
Assessment Year
As per section 2(9) of Income Tax Act, 1961, the Assessment Year means the period of twelve
months commencing on the 1st day of April every year and ending on 31st March of the next year.
for 2010-11, the assessment year will be from 1st April 2010 to 31st March 2011 for
the Financial Year 2009-2010.
Previous Year
Previous year refers to the Financial Year immediately preceding to the Assessment Year. e.g. for
2010-2011, the Previous year will be from 1st April 2009 to 31st March 2010.
Assessee
As per Income Tax Act 1961 (Act no. 43), an assessee is a person by whom any tax or any other
sum of money is payable under this Act, which includes:
every person in respect of whom any proceeding under this Act has been taken for the
assessment of his income 25[or assessment of fringe benefits] or of the income of any
other person in respect of which he is assessable, or of the loss sustained by him or by
such other person, or of the amount of refund due to him or to such other person
every person who is deemed to be an assessee under any provision of this Act
every person who is deemed to be an assessee in default under any provision of this Act
Person
As per Income Tax Act, the person includes:
an individual
a Hindu Undivided family
a Company or organisation
a firm
1
an association of persons or a body of individuals
a local authority
Total Income
i. Total Income for Resident
As per the provisions of Income Tax Act, the total income of any previous year of a person who is
an Indian resident includes all income from whatever source derived which:
is received or is deemed to be received in India in such year by or on behalf of such person
accrues or arises or is deemed to accrue or arise to him in India during such year
accrues or arises to him outside India during such year
Provided that, in the case of a person not ordinarily resident in India within the meaning of sub-
section (6) of section 6, the income which accrues or arises to him outside India shall not be so
included unless it is derived from a business controlled in or a profession set up in India.
ii. For Non Resident Indian
As per the provisions of Income Tax Act, the total income of any previous year of a person who is
a non-resident includes all income from whatever source derived which:
is received or is deemed to be received in India in such year by or on behalf of such person
accrues or arises or is deemed to accrue or arise to him in India during such year.
For more information on eligibility criteria for each allowance type you can refer to
the Income Tax web site as these keeps changing from time to time.
Deductions U/s 16
Following are allowed as deductions from the Gross Salary for the computation of Taxable income
U/s 16 of Income Tax Act:
Entertainment Allowance - Entertainment allowance specially granted to an employee
who is in receipt of Salary from Government.
Professional Tax - Tax on Employment
3
Introduction
Taxable Income
The Net Income which is arrived after considering all eligible exemptions, investments and deduc-
tions is known as Taxable Income. The Income Tax is computed on the Net Taxable Income for
each employee.
4
Lesson 1: Configuring Income Tax
The Payroll and Payroll Statutory features should be enabled in Tally.ERP 9, before
configuring the Income Tax.
5
Configuring Income Tax
Once the Income Tax is configured, the new menu options will be available under the Payroll
Masters and Payroll Reports to configure Income Tax and to check the respective reports.
6
Lesson 2: Income Tax Master Configuration
Tally.ERP 9 requires the following Master setup for the Income Tax to be computed successfully
for all the Employees, for all the existing Payroll users:
Pay Head Configuration
Income Tax Configuration
Employee Declarations
Following are the optional configurations:
Declaring Previous Employer Income/Details
Override Income Tax Exemption Value
Override Income Tax Value
By default all the existing Pay Heads are considered as fully taxable and hence
incorrect Tax Computation may be projected. To display the correct Tax Computa-
tion, you will have to reconfigure the Existing Pay Heads.
The Professional Tax and Provident Fund Pay Heads are configured for Income Tax
by default.
Example 1:
Spectrum Software Services is already using Tally.ERP 9 Payroll and has the following Pay
Heads:
7
Income Tax Master Configuration
8
Income Tax Master Configuration
9
Income Tax Master Configuration
The Pay Head Configuration screen after setting the Income Tax Configuration for Basic Pay
appears as shown:
Completed Income Tax Configuration for Children Education Allowance Pay Head is as
shown:
10
Income Tax Master Configuration
Completed Income Tax Configuration for Employee’s Provident Fund Deduction Pay Head is
as shown:
11
Income Tax Master Configuration
The completed Income Tax Configuration screen for Bonus Ledger is displayed as shown:
12
Income Tax Master Configuration
Example 3:
The HRA details as declared by the Employees is given below:
Sl. No. Name of Employee HRA Amount
1 Ajay 5000
2 Mahesh 10000
3 Rahul 6000
4 Vijay Kumar 7000
13
Income Tax Master Configuration
In the above screen you can select an individual Employee and enter the HRA
details one by one for all the Employees.
Selecting All Items will allow you to enter the HRA details for all the Employees
from single screen.
In the House Rent Declaration screen,
Specify the Effective From date as 1.4.2010
Enter Rent Declared as 5000
Rent Proof field can be skipped while entering the declaration
Select Non-Metro as Place of Residence for Bangalore city
Effective From: The date from when the Rent is paid in the current financial
year has to be specified.
Rent Declared: Monthly Rent as declared by the Employee has to be specified
in this field.
Rent Proof: Actual Rent Paid by the Employee has to be entered in this field.
This will be usually entered when the Employee provides the proof of the Rent
Paid by him.
Place of Residence: Will be Metro for New Delhi, Mumbai, Kolkata and
Chennai. For all other cities it will be Non-Metro.
14
Income Tax Master Configuration
Similarly, you can specify the Rent Declaration for all other Employees also.
Example 4:
The details required for Child Education Allowance, as given by the Employees are shown below:
Sl. No. Name of Employee No. of Children
1 Ajay 1
2 Mahesh 2
3 Rahul 1
4 Vijay Kumar -
15
Income Tax Master Configuration
Similar to House Rent Allowance, the Child Education Allowance declaration screen is
displayed below:
Similarly, the declaration for Children Hostel Expenditure Allowance, Conveyance Allowance
and Leave Travel Allowance can also be specified.
16
Income Tax Master Configuration
Example 5:
Below is the list of Investment Details as provided by the Employees for Deductions under 80C &
80CCF:
Sl. Name of Housing Loan Insurance Long Term Infrastructure
No. Employee Repayment Premium Bonds
1 Ajay 50,000 11,000 20,000
2 Mahesh 1,00,000 20,000 20,000
3 Rahul - 7,000 10,000
4 Vijay Kumar - 9,000
To enter the Employee Declaration for Investments made under section 80C & 80CCF,
Bring the cursor to Multi Employee Single Component under Investments (80C and
80CCF) and press Enter
Select All Items under Employee Name/Group
Select Type of Investment under Housing Loan Repayment and press Enter
You have to select the required Investment Type to submit the declaration for the
respective Investment from the List.
17
Income Tax Master Configuration
The Investment Details screen for Housing Loan Repayment appears as shown:
18
Income Tax Master Configuration
Effective From: The date from when the Investment Proof is applicable. This
will also be used for the Income Tax Computation for the previous period. If the
Employee changes the Investment Declaration the same should be added with
new Effective From date, keeping the earlier date and record intact. e.g. on
1.4.2010 Ajay has declared Housing Loan repayment as 50,000 and on
1.7.2010, the new amount is declared for Housing Loan as 75,000. You have to
record both in the system.
Amount Declared: Total Principal Amount payable during the year has to be
specified in this field.
Proof Amount: Actual Rent Paid by the Employee has to be entered in this
field. This will be usually entered when the Employee provides the proof of the
Rent Paid by him.
Similarly the Investment Details for Housing Loan Repayment can be entered for the
remaining Employees also.
19
Income Tax Master Configuration
20
Income Tax Master Configuration
To enter the Employee Declarations for any other scheme apart from the ones
given in the List of Investments, select Other Eligible Investments and specify
the Values.
21
Income Tax Master Configuration
Example 6:
Below is the list of Investment Details as provided by the Employees for Deductions under section
80D, 80DD, 80E etc.
Sl. No. Name of Employee Mediclaim Insurance
1 Ajay -
2 Mahesh 15,000
3 Rahul 5,000
4 Vijay Kumar -
To declare the other Deductions allowed under Chapter VIA (U/s 80D, 80DD, 80E etc.),
Bring the cursor to Multi Employee Single Component under Others (80D, 80DD, 80E
etc.) or press Alt+O
In the Effective From field specify 1-4-2010
Select Others in the Condition field from the List of Categories
Specify required Amount in the Declared Amount field for each Employee
Proof Amount can be specified later when the Employees provide the required proofs
The completed Chapter VIA - Others declaration screen for Mediclaim Insurance is displayed
as shown:
22
Income Tax Master Configuration
Effective From: The date from when the Investment Proof is applicable. This
will be also used for the Income Tax Computation for the previous period. If the
Employee changes the Investment Declaration the same should be added with
new Effective From date, keeping the earlier date and record intact.
Condition: Should be selected as Senior Citizens for Employees above 60
Years and for all other Employees Other Category should be selected.
Declared Amount: Total Principal Amount payable during the year has to be
specified in this field.
Proof Amount: Actual Rent Paid by the Employee has to be entered in this
field. This will be usually entered when the Employee provides the proof of the
Rent Paid by him.
Similarly, you can specify the other Deductions for Chapter VIA (u/s 80D, 80DD, 80E etc.)
Tally.ERP 9 also allows you to override the existing Income and Exemption slabs or it also allows
you to override the Tax amount which is computed by default. The override Exemption value if
specified will be applicable for entire year, whereas the Tax override value will be applicable on
monthly basis for the specified period.
For the detailed usage of Override options, please refer to the Help file.
Tax Configuration
Tax Configuration is a comprehensive Master setup screen for Income Tax which allows you to
Configure Pay Heads/ Ledgers, enter Declarations and specify other declaration details such as
Tax Deducted by previous Employer, any other source or self tax declaration and declaration
about the reliefs provided under section 89, 90 and 91 etc.
23
Income Tax Master Configuration
In other words, Tax Configuration screen is like a Quick Setup which guides the users to make
all the necessary setup required for correct computation of Income Tax. Various items are
arranged in the Tax Configuration screen in the same manner as Form 16 to simplify the entire
user experience.
For illustration purpose Tax Configuration for HRA is explained in this Chapter. You can refer to
Tally.ERP 9 Reference Manual (Help File) for more information on using the Tax Configuration
Master Setup screen.
To configure, Configure HRA Pay Head and enter the Employee Declaration for HRA,
Go to Gateway of Tally > Payroll Info. > Income Tax Details > Tax Configuration
Bring the cursor to House Rent Allowance under Allowance to the extent exempt u/s
10 as shown:
As discussed earlier, Tax Configuration screen displays the details as per Form 16 and it also
displays the status for each particular as Configured/Not Configured or Note Applicable.
Press Enter to view the Income Tax Allowance Setup (Setup Helper)
24
Income Tax Master Configuration
The above setup screen is divided based on the type of allowance/income component/invest-
ment:
Masters: Allow you to configure the Pay Head/Ledger for the Income Tax
Declaration or Define Value: Allows you to enter the Employee Declaration details or define the
required value details.
i. HRA Configuration
As discussed earlier, the HRA Pay Head/Ledger can also be configured from the Income Tax
Allowance Setup screen under Tax Configuration menu as explained:
Press Enter on Configure Pay Head/Ledger for House Rent Allowance
25
Income Tax Master Configuration
You can see that the Pay Head Configuration screen when viewed from Tax Configuration menu
display only the relevant Ledgers/Pay Heads to help the user in speeder configuration. For details
on Configuration of Pay Heads, refer to the Pay Head Configuration section discussed earlier.
Since HRA is dependant on Basic Pay, the above screen also displays the Basic
Pay - Pay Head so that the user can check and configure both the Pay Heads.
26
Income Tax Master Configuration
The Declaration screen for House Rent allowance opens and it allows you to declare the HRA for
one or all the Employees. If already declared you can alter the Declaration values from this
screen.
For the detailed usage of Previous Employer Income/Expenses/Tax Paid etc., refer to the help file
(Tally.ERP 9 Reference Manual)
27
Income Tax Master Configuration
You can configure the TDS Pay Head either under Current Liabilities or Duties &
Taxes.
28
Income Tax Master Configuration
Rounding Method and Limit are defaulted for the Income Tax Pay Head Creation
The completed Income Tax Pay Head Creation screen is displayed as shown:
29
Income Tax Master Configuration
Similarly, alter the Salary Details for all the Employees can be altered to add the TDS Pay Head.
Once all the above configuration are successfully completed, you can process the salaries and
deduct the required TDS.
30
Lesson 3: Processing Payroll
There are three types of Payroll Vouchers namely Attendance Voucher, Payroll Voucher and
Payment Voucher, which are by default preset in Tally.ERP 9 to record above Payroll transac-
tions.
Payroll Vouchers are used for the purposes of operating your payroll and also records the attend-
ance of the employees for a given period. These vouchers are basically used to input information
pertaining to Payroll processing.
Payroll Vouchers are used for the purposes of operating your payroll and also records the attend-
ance of the employees for a given period. These vouchers are basically used to input information
pertaining to Payroll processing.
.
Recording Attendance
An Attendance Voucher allows you to record the attendance/ production units for employees.
Tally.ERP 9 gives you the flexibility to enter the attendance records through a single attendance
voucher for a payroll period, or through multiple attendance vouchers as and when required within
a payroll period.
In Tally.ERP 9, the auto-fill facility (Alt+A) is used to pre-fill the required Attendance/Production
types data for the selected employee group/ employee for the specified period.
31
Processing Payroll
Example 1:
On 30th April, 2010 the attendance records of M/s. Spectrum Software Services displayed
the following details:
Attendance/ Produc- Vijay Kumar Rahul Mahesh Ajay
tion Types
Days Absent 1 1 0 0
Overtime hours 900 Min - - 720 Min
(15hr x 60min) (12hr x 60min)
In the above scenario, separate attendance vouchers are required to be entered for recording
Present days and Overtime hours.
32
Processing Payroll
Separate Attendance vouchers are required for recording attendance on Work and
Production.
If you opt for Present as Attendance Type, then you need to record the negative
attendance of the employees.
33
Processing Payroll
The Attendance Voucher is prefilled with 0 for all required Employees as shown:
34
Processing Payroll
The completed Attendance Voucher Creation screen with the attendance details screen is
displayed as shown:
35
Processing Payroll
The calculations are made on the basis of the definitions specified in the pay head masters, pay
structure and attendance entries. In Tally.ERP 9, you can pass payroll vouchers manually for indi-
vidual employee as well as for the entire group/ organisation by using the Auto Fill facility (Alt+A).
Example 2:
On 30th April, 2010, M/s. Spectrum Software Solutions processes Payroll for all the
employees and entitled the following employees for Variable Pay.
Particulars Vijay Kumar Rahul Mahesh Ajay
Variable Pay 1500 - 1000 -
36
Processing Payroll
In Tally.ERP 9, the following processes are preset for faster processing of Payroll:
User Defined Pay Heads: This process is used for processing the User
Defined Pay Heads e.g. Variable Pay, Incentives.
Salary: This process is used for processing salaries for a specified period,
wherein Salaries are disbursed through Cash or a bank transfer.
ESI Contribution: This process is used for processing Employer’s contribu-
tions towards ESI for a specified period.
PF Contribution: This process is used for processing Employer’s Provident
Fund (PF) contributions for a specified period.
You can select Cash as the Payroll Ledger if you are directly making the payment
from Payroll Voucher itself.
37
Processing Payroll
38
Processing Payroll
39
Processing Payroll
Press Enter to pre-fill the Payroll Voucher with all Pay values for all Employees includ-
ing Income Tax deduction (TDS)
The completed Payroll Voucher Creation screen is displayed as shown:
Processing Payments
In Tally.ERP 9, the Payment Vouchers are used to effect salary disbursement, PF payment, ESI
Payment, Professional Tax payment and Income Tax payment.
To automate the above payments, Auto Fill facility has been provided in the Payment Voucher
screen for error free processing.
Example 3:
On 30th April 2010, M/s. Spectrum Software Solutions paid the salaries due for the month
of April 2010. The PF, ESI, PT and Income Tax were also paid on 30th April 2010.
For illustration, only Income Tax Payment is explained in detail and remaining payments follow the
similar process.
40
Processing Payroll
Before passing the Income Tax payment voucher, necessary Bank Accounts should be created.
To make the Income Tax payment, follow the steps given below:
Go to Gateway of Tally > Accounting Vouchers > Press F5 for Payment Vouchers
Press F2, specify the date as 30-04-2010 and press Enter
Press Alt+A (Payroll Auto Fill) to pre-fill employee payroll details
In the Payment Auto Fill screen,
Select Income Tax Challan in the Process for field as shown.
Specify 01-04-2010 as From period
Specify 31-04-2010 as To period
Specify Voucher Date as 30-04-2010
Select Primary Cost Category in the Employee Category field
Select All Items in the Employee/Group field
Select HDFC Bank in the Bank / Cash Ledger field as shown.
Select Salary Payable in the Payroll Ledger field
The completed Payment Auto Fill screen is displayed as shown:
41
Processing Payroll
Press Enter and the employee Income Tax details will appear by default as shown:
42
Processing Payroll
43
Processing Payroll
44
Processing Payroll
45
Lesson 4: Income Tax Reports
Tally.ERP 9 helps to generate the following Income Tax reports for Employer and Employees:
Computation Report
Salary Projection
Challan Reconciliation
Returns
Quarterly
Form 24Q
Annexure I to 24Q
Annexure II to 24Q
Annual
Form 16
Form 12BA
ITR-1
E-Return
E-24Q
Print Form 27A
Exception Reports
PAN Not Available
Other Records
TDS Variance
Computation Report
The Computation Report displays the Employee wise Income Tax Computation details in the
Form 16 format. Along with the Total Tax payable, it also displays the balance tax payable, tax
already paid and tax amount to be deducted in the subsequent month.
Tally.ERP 9 provides the flexibility to configure the Pay Heads or add the declaration/proof
amounts by pressing Ctrl+Enter on the required Income Tax Component.
46
Income Tax Reports
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Computation
The above report displays the Employee details on the top of the screen, on the right hand top
corner it gives the overall Tax deduction snapshot. In the remaining report each Income Tax
Component values are displayed.
47
Income Tax Reports
You can click Ctrl+Enter on any of the Income Tax Component shown in italics. The relevant
button gets highlighted only when the cursor is on the relevant income Tax Component as shown:
By default the Computation report displays only relevant Income Tax Computations as per the
applicability.
To view the all the Income Tax Components,
Press F3 or click on F3: Show all button from Income Tax Computation screen
48
Income Tax Reports
By default the above screen displays the Income Tax Computation based on the Declaration sub-
mitted. To change the computation based on the actual proofs submitted,
Press F5 or click on F5: Proof Value button from Income Tax Computation screen
49
Income Tax Reports
You can also view the Computation for each Income Tax Component by pressing Enter on the
respective component.
The display for computation for each individual component can be seen only for
those items which have the declared/proof values. This report will help you to under-
stand the actual computation that is carried in the background.
50
Income Tax Reports
51
Income Tax Reports
Salary Projection
The Salary Projection report provides the details of the Earnings and Deduction Pay Head values
which are considered for Income Tax for a selected Employees. It provides the projection for
twelve months and displays the actuals if payroll is already processed for any given month.
52
Income Tax Reports
Challan Reconciliation
All the Income Payment Challan details can be reconciled from one single menu known as
Challan reconciliation.
To reconcile Challan details,
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Challan Reconciliation
53
Income Tax Reports
54
Income Tax Reports
Returns
The following Income Tax returns can be generated from Tally.ERP 9:
Quarterly
Form 24Q
Annexure I to 24Q
Annexure II to 24Q
Annual
Form 16
Form 12BA
ITR-1
Form 24Q
Form 24Q is a Quarterly statement which contains the details of the salary paid and tax deducted
from the employees, that an Employer needs to submit to the department in each Quarter.
To print Form 24Q,
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Returns > Form 24Q
Specify the Name, Designation and Address of the person responsible for deducting the
TDS along
Select the Quarter which the TDS returns have to filed
Specify the Date and Place.
55
Income Tax Reports
56
Income Tax Reports
Along with the Form 24Q, Annexure I and Annexure II is also required to be submitted.
Annexure I is required to be filed with Form 24Q in all four quarters while Annexure II has to be
filed only in the last Quarter.
Annexure I to 24Q
Annexure I is required to be filed with Form 24Q in all four quarters.
To print Annexure I,
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Returns > Annexure I to Form 24Q
Specify the details as shown in the Print Configuration screen:
57
Income Tax Reports
Shown above is the Annexure I for the month of April 2010. Similarly, the Annexure I for May 2010
and June 2010 for that Quarter can also be printed.
To print the Annexure I for the remaining months, select the respective Quarter in the Print Config-
uration screen
58
Income Tax Reports
Annexure II to 24Q
Annexure II has to be filed along with Form 24Q only in the last Quarter (4th Quarter).
59
Income Tax Reports
60
Income Tax Reports
Page 1 (B)
Page 1 (C)
61
Income Tax Reports
Page 1 (D)
Annexure II to Form 24Q is required to be printed while filing the returns for the last Quarter (4th
Quarter).
62
Income Tax Reports
Form 16
Form 16 is the Certificate issued for tax deducted at source from income chargeable under the
head Salaries.
To view the Form 16,
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Returns > Form 16
Select the required Employee from the List of Employees and press Enter
Specify the following details:
Name: Specify the name of the person responsible for Income Tax Deduction.
Son/Daughter of: Specify the father’s name for the TDS Deductor
Designation: Specify the designation of the person responsible for TDS Deduction
From: By default displays 1-4-2010 which can be changed.
To: Enter the To date (by default it will be 31.03.2011)
Challan Date Till: In this field enter the date to consider the challan payments made.
Type of Copy: Specify Original or Duplicate as required
Place: Enter the name of the Place (e.g. Bangalore)
Date of Printing: Specify the Date of issue of Form 16
Quarter/Acknowledgement: Mention the acknowledgement number of the TDS
returns filed against the appropriate Quarter.
CIT (TDS) Details: In this section enter the address of the Commissioner of Income
Tax having jurisdiction for TDS deduction for the assessee.
Address: Enter the address of the commissioner office
City: Mention the City name
Pin Code: Enter the PIN Code.
The completed Print Configuration screen for printing Form 16 is displayed as shown:
63
Income Tax Reports
64
Income Tax Reports
Similarly, you can print the Form 16 for all the Employees.
Form 12BA
Form 12BA is the statement displaying the particulars of perquisites, other benefits or amenities
and profits in lieu of salary with value thereof.
Form 12BA can be printed from the following menu:
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax >
Returns > Form 12BA
In this book, printed Form 12BA is not shown as the perquisites are not handled in the case study.
65
Income Tax Reports
ITR-1
Tally.ERP 9 also allows you to print or email the Form ITR-1 which are used to file the Income Tax
return. Similar to Form 16, ITR-1 is also printed separately for each employee.
66
Income Tax Reports
67
Income Tax Reports
68
Income Tax Reports
69
Income Tax Reports
E-Return
The following Income Tax E-returns can be generated from Tally.ERP 9:
E-24Q
Print Form 27A
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax > E-
Return
4.4.1 E-24Q
E- 4Q is a Quarterly e-return which contains the details of the salary paid and tax deducted from
the employees, that an Employer needs to submit to the department in each Quarter.
To export E-24Q
Go to Gateway of Tally > Display > Statutory Reports > Payroll Reports > Income Tax > E-
Return > E-24Q
In Quarterly Return screen press Backspace to make changes in Person Responsible Details
or Other Details fields.
By default, the Language and Format is preset as Restricted (ASCII Only) and SDF
(Fixed Width) respectively.
In Export Location field enter the details of the path to where the txt file to be exported
In Output File Name field the test file name will be displayed as ITeTDS.txt which can be
changed by the users.
Press Enter to accept the Person Responsible Details (The Address details are automat-
ically defaulted from the Company masters in the Person Responsible Details column)
70
Income Tax Reports
As per the new E-return structure it is must to specify either Mobile Number or STD Code
with Telephone number in E-24Q file.
Mobile Number: This field is provided to specify the mobile number of the assessee
STD Code: This field is provided to enter the STD code
Telephone: This filed is provided to enter the telephone number of the assessee
As per the new E-return structure it is must to specify either Mobile Number or STD
Code with Telephone Number in E-24Q file.
If the user tries to navigate without specifying the Mobile number or STD Code or
Telephone number application will not allows to move further.
In Email field enter mail ID of Person responsible for income tax deduction and payment
to the income tax department.
Select Yes or No as applicable, in Is Change in Address since last Return field.
Under Other Details,
Type of Deductor details will be captured form the TDS Details defined in F11: Fea-
tures.
In Category (deductor/Collector) field select the Deductor Category. e.g. Associa-
tion of Person (AOP)
In Quarter Period for field select the appropriate Quarter for which the e-return to be
generated.
The Quarterly Return configuration screen is displayed as shown:
71
Income Tax Reports
The exported file is placed in the Tally.ERP 9 Directory with the file name as specified above.
The exported file (form 24Q) is required to be validated with the File Validation Utility (a freely
downloadable utility from NSDL website) and after validation, the returns should be submitted to
the department in CD along with Form 27A in Physical Form.
It is mandatory to validate the TDS returns with File Validation Utility to confirm to
the requirements as prescribed by the Income tax department. In case of any errors
in exported file (Returns), the FVU prompts a error message with error code, the
assessee may correct the same and revalidate the returns. The File Validation Utility
is available for Quarterly and Annual returns separately.
Tally.ERP 9 exports Form 24Q in the text (.txt) format as prescribed by NSDL.
72
Income Tax Reports
73
Income Tax Reports
74
Income Tax Reports
Exception Reports
The following Exception Reports for Income Tax can be generated in Tally.ERP 9:
PAN Not Available
Other Records
TDS Variance
You can get the required information from the above reports to get the correct Income Tax Com-
putation details.
PAN Not Available
For correct Tax computation, its necessary that you specify the PAN number for all the Employ-
ees. The tax will be computed at higher rate if the PAN number for the Employee is not provided.
You can check the information of Employees for whom the PAN is not provided from PAN Not
Available screen.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax
Reports > Exception Reports > PAN Not Available
75
Income Tax Reports
Press F5 (F5: All Items) to view all the Employees PAN details a shown:
Specify the PAN Details for all the Employees for which PAN is not entered
76
Income Tax Reports
Other Records
The other Records report displays Employee’s personal details, contact details and Bank details.
To view Other Records for Employees,
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax
Reports > Exception Reports > Other Records
77
Income Tax Reports
You can scroll on the right side to view the remaining details.
TDS Variance
The TDS Variance report provides the Details of TDS amount which is actually payable for not
paid for any of the Employees Groups or all Employees. This will provide the useful information
to the Employer to ensure that the remaining amount is recovered by the Employer in the subse-
quent months.
Go to Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax
Reports > Exception Reports > TDS Variance
Select the required Employees or All Employees and press Enter
78
Income Tax Reports
The TDS Variance report for all the Employees is displayed as shown:
The Variance report displays the Actual TDS amount collected in each month and month wise
variable amount.
For more details on usage and description of each field, refer to Help file (Tally.ERP 9 Reference
Manual).
79
Tally.ERP 9 Series A Release 4.93
Income Tax
Tally.ERP 9 Identifies,
• All earning components are considered as fully taxable
GatewayThe
of Tally > are
Display > Payroll Reports > Statutory
can beReports >
• PFapproximate
and PT Income
considered forTax Computation
Deduction
Income Tax > Computation
viewed immediately after enabling the Payroll
Statutory Feature, without any further configurations.
Create/Alter Salary Details for all Employees for effect TDS Deduction.
• Gateway of Head
Note: If TDS Pay Tallyalready
> Payroll Info.
exists, you have > PaytheHeads
to alter same as>
shown.
Create/Alter
•If the
Go employer
to Gateway
wantsoftoTally > Payroll Info. > Income
override the earnings (Income)
Tax Details
or Exemption value or even Tax
value of the employee it can be
done from the Override options
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
2. Select Loans and Advances as the Pay Head Type from the list of Pay Head Type
3. Select Loans and Advances (Assets) from the List of Groups in the Under field
4. By default, Affect Net Salary is set to Yes. Type No, if you do not want this component to
be included in the Pay Slip
5. By default, the Pay Head component name entered in the Name field will appear in the Pay
Slip, if you want to change the default Pay Head component name then alter it in Name to
appear in Payslip field
6. In the Calculation Type field select As User Defined Value from the List of Calculation
[Img-64]
Note: In case i f the i nte rest i s also re cove re d from the Empl oyee ’s sal ary for the
Loan/ Advance gi ve n, Inte re st cal cul ati on fe ature can be use d to cal cul ate the EMI for
e ach month and the same can be re cove re d by se le cti ng the Cal cul ati on Type as Fl at
Rate .
Defining Salary Structure in Tally.ERP 9
Salary Details is used to define the Pay Structure for an Employee or an Employee Group.
[Img-71]
If required, a Pay Head component or its value may be added, deleted or altered at Individual Employee
level. To define Salary Details for Employees referDefining Salary Details for an Employee.
Go to Gateway of Tally > Payroll Info. > Salary Details > Define
1. Select the Employee Group, e.g. Accounts in the Name field from the List of
Groups/Employees
2. In the Salary Details screen, specify the Date in Effective From field
3. In the Pay Head field, the Start Type list displays Two options namely, Copy From Employee
Copy From Employee Group, and Start Afresh
Note: If the Pay He ad de t ai ls are avai labl e i n other Empl oye e Group, the n the opti on Copy
From Em pl oyee Group w il l be displ aye d for se l ecti on.
If the opti on Al l ow C opy From Empl oyee is e nabl ed i n F12: Conf i gurati on , the n the
opti on C opy From Em pl oyee w ill be di spl aye d
If you select Copy From Employee Group, the Salary Details defined for the Employee Group
will appear in the screen
If you select Copy From Employee, the Salary Details defined for any Employee, irrespective of
Employee Group, can be selected
If you select Start Afresh, you have to select the Pay Heads from the List of Pay Heads and enter
the values for the necessary Pay Heads, if required.
6. The Pay Head Type, Calculation Type and Calculated On fields display the details provided at the
Pay Head creation level
[Img-72]
Note: If you are usi ng any Pay He ad compone nt having Cal cul ati on Type: As Computed
Val ue and C om pute: O n C urrent Earni ngs Total the n w hi le de fini ng Sal ary De tail s, the
se que nce of the compone nt has to be se le cte d accordi ngl y.
Go to Gateway of Tally > Payroll Info. > Salary Details > Define
1. Select the Employee in the Name field from the List of Groups/Employees
3. In the Pay Head field, the Start Type list displays three options namely, Copy From
Employee, Copy From Parent Value and Start Afresh
Note: If the Pay He ad de t ai ls are avai labl e i n the pare nt group, the n the opti on Copy
From Parent Val ue w il l be di spl aye d for se le cti on.
If the opti on Al l ow C opy From Empl oyee is e nabl ed i n F12: Conf i gurati on , the n the
opti on Copy From Empl oye e w ill be di spl aye d.
If you select Copy From Employee, the Salary Details defined for any Employee,
irrespective of Employee Group, can be selected.
If you select Copy From Employee Group, the Salary Details defined for the Employee
Group will appear in the screen
If you select Copy From Parent Value, the Salary Details defined for the Employee
Group to which the Employee belongs will appear in the screen
If you select Start Afresh, you have to select the Pay Heads from the List of Pay Heads and
enter the values for the necessary Pay Heads, if required.
[Img-73]
Note: If the Pay He ad de t ai ls are avai labl e i n the pare nt group, the n the opti on Copy
From Parent Val ue w il l be di spl aye d for se le cti on, el se you wi ll ge t onl y Start Af resh .
If the opti on Al l ow C opy From Empl oyee is e nabl ed i n F12: Confi gurati on, the n the
opti on Copy From Empl oye e w ill be di spl aye d.
4. Modify values for the necessary Pay Heads as per Employees eligibility
[Img-74]
Go to Gateway of Tally > Payroll Info. > Salary Details > Alter
1. Select the required Employee/ Employee Group from the List of Groups/Employees
[Img-75]
E.g. If you have defined Slab Rate for HRA as 40% in the Pay Head level, and if you wish to
change the Slab Rate percentage in the Salary details screen. Set Allow to Override Slab
Percentage to Yes in Salary details configuration screen and Tally.ERP 9 will allow you to
Override the percentage e.g. to 50% and so on. (Metro Cities & Non Metro Cities).
Allow Copy From Employee: If you want copy the Salary Details of an employee who
belongs to a different Employee Group, set this option to Yes
Show Pay Head Type: Set Show Pay Head Type to Yes to display if the Pay Head is an
Earning or a Deduction in the Salary Details screen
Show Calculation Type: Set Show Calculation Type to Yes to display the method of
calculation adopted (As Computed Value, As User Defined Value, Flat Rate, On
Attendance or On Production
Show Computed On: Set Show Computed On to Yes to display the Computation
Information (On Current Deductions Total, On Current Earnings Total, On Current Sub
Total, On Specified Formula)
In the Attendance Voucher, you can use the A: Payroll Auto Fill button to speed up data entry process.
Auto Fill enables the user to fill all employees of a selected Employee Category (if more than One Payroll Categor
enabled) and/or a selected Employee Group and enter data for selected type of Attendance/Production Type for th
employees.
7. Enter the required number of days in the Default Value to Fill field (e.g. 0 days for absent and 26 days for
present etc.)
[Img-128]
8. In the Sort by field, select the Sorting Method based on which the Employee details will appear in the Voucher
Employee Name or Employee Number Only.
[Img-129]
Similarly, you can record the details for the Paid Leave, Overtime or Production using Attendance Auto Fill
F12: Configure
Click on F12: Configure or press F12 to change the default view for the Attendance Voucher
[Img-130]
Skip Date field in Create Mode (faster entry!): Set this option to Yes to skip the Date selection
field for faster data entry. By default the Date of Last Entry will be taken as the Voucher Date
Show Resigned / Retired Employees: Set this option to Yes to display the Resigned / Retired
employees also during the Voucher entry
Show Balances as on Voucher Date: Set this option to Yes to display the Current Balance as per
the Voucher date for each Employee
Show Employee Number: Set this option to Yes to display the Employee Number for
the employees during the Voucher entry
7. Select the appropriate Payroll Ledger from the List of Ledger Accounts
8. Set Use Mode of Payment/Transaction Type to Yes. This will open a new option called
Mode of Payment/Transaction Type. Setting this option to Yes will allow user to filter
employees based on Banking details defined in employee's master.
o Select the appropriate Use Mode of Payment/Transaction Type
[Img-131]
8. Enter the User Defined Pay Head Values, e.g. Variable Pay, Salary Advance Deductions if any
etc.
9. Enter the required Narrations if any. The Payroll Voucher shows the Pay period by default in the
Narration field.
[Img-132]
4. Select Declared Value in the Compute Income Tax Based on field, to compute tax
based on declared amount
8. Select the appropriate Payroll Ledger from the List of Ledger Accounts
[Img-133]
Note: If the Sal ary payme nt i s done through Cash, you can se le ct Cash as Payrol l
Ledger.
9. Enter the User Defined Pay Head Values, e.g. Variable Pay, Salary Advance Deductions if
any etc.
10. Enter the required Narrations if any. The Payroll Voucher shows the Pay period by default in
the Narration field.
[Img-134]
Statements of Payroll
Attendance Sheet
Attendance Register
Expat Reports
Statutory Reports
Note: The Statutory Reports opti on w i ll be di spl aye d onl y i f the Payrol l Statutory
Features i s e nable d.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll
[Img-160]
Pay Slip
Pay Sheet
Payroll Statement
Payment Advice
Payroll Register
Employee Profile
The Pay Slip option in Tally.ERP 9 facilitates the users to view the Pay Slip for individual Employees,
Configure the Content and Appearance based on the requirement and then Print or Email the Pay Slip.
Alternately, the user can also print or Email Pay Slips for all or selected Employees from the Pay Slip
Menu.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Pay Slip
[Img-161]
Select Single Pay Slip and press Enter to view, print or Email Pay Slips for single
Employees.
Select Multi Pay Slip and press Enter to print or email Pay Slips for all or selected
Employees.
Select E-Mail IDs and press Enter to check the Email Exceptions report.
Go to Gateway of Tally > Display > Payroll Reports > Statements of Payroll > Single Pay Slip
Select the Employee for whom you want to view the Pay Slip
[Img-162]
Click on F12: Configure button in the Pay Slip to display a configuration sub-form, using which the user
can customise the display/printing content and appearance of the Pay Slip.
[Img-163]
The default settings for the configuration options are shown above. The options, which are set to Yes,
will become visible in the Pay Slip. Select No to exclude the information, which is not required to be
displayed on the Pay Slip.
Show Vertical Pay Slip: Set this option to Yes to align Deduction Part below the Earning.
Set it to No to align them side-by-side.
Show Employee Details: Set this option to Yes to display Employee Details as entered in
the employee master.
o Show Passport Details: Set this option to Yes to display the Passport Details.
o Show Visa Expiry Date: Set this option to Yes to display the Visa Expiry Date.
o Show Joining Date: Set this option to Yes to display the Employee Joining Date.
o Show Attendance/Production Groups: Set this option to Yes to display grouping of the
Attendance/production data as defined while Types creation.
Show Year To Date values: Set this option to Yes to display cumulative value of
attendance/production data or Earning and Deduction data for the current Financial Year.
Show Gross Salary: Set this option to Yes to display the Gross Salary details for each
component in the Salary Details.
o for Deduction's also: Set this option to Yes to display the Gross Salary Details for each
Deduction component.
Show Employer Contribution to NPS: Set this option to Yes to display the employer's
contribution towards the National Pension Scheme.
Remove Zero Entries: Set this option to Yes to remove Earning/Deduction data with Zero
value from the Pay Slip.
For Attendance/Production Also: Set this option to Yes to remove Attendance data with
0 values from the Pay Slip.
Appearance of Employee Names: You can select the appropriate appearance of name
from the Display Employee Name Style list.
Appearance of Pay Head Names: Select the appropriate name style to appear for each
Pay Head in Pay Slip (i.e. Alias(Name), Alias only, Name(Alias), Name Only, Pay Slip
Name).
F1: Detailed
Click on F1: Detailed button or press ALT+F1 to view source details of individual Attendance and Pay
Head values. This view displays the Attendance or Payroll vouchers from which the data is picked in the
current Pay Slip. Voucher Number, Date and the Value of the attendance or earning or deduction value
is displayed. This is useful when multiple attendance/payroll vouchers are entered during the same
payroll period. The user can drill down to the corresponding voucher directly from the Pay Slip screen.
Click the F1: Condensed button or press ALT+F1 again to return to the normal mode.
F2: Period
By default, when you bring up the Pay Slip view, the Period of Pay Slip - Attendance and
Payroll Vouchers data is set to current month, and in most cases you don’t have to change it.
However, if required, you can change the period of data and include multiple-period payroll information
to view/print a consolidated Pay Slip. As in all other Tally.ERP 9 reports, there is a great flexibility in
terms of Period of Payroll processing as well as in the printing of Pay Slip.
F4: Employee
Using Employee Button (F4 Key), you can view another employee’s Pay Slip from the existing Pay
Slip display screen.
Click on Print button or Press Alt+P from the Pay Slip display screen to print currently displayed Pay
Slip. Tally.ERP 9 will print the Pay Slip in the format that is configured for display.
Show Vertical Pay Slip: Set this option to Yes to print the Pay Slip in vertical format.
Show Employee Details: Set this option to Yes to print the Passport, Visa and Joining
details as entered in the employee master.
Show Passport Details: Set this option to Yes to print the employee’s passport details.
Show Visa Expiry Date: Set this option to Yes to print the employee’s visa expiry date.
Show Joining Date: Set this option to Yes to print the Joining date.
o Show Attendance/Production Groups: Set this option to Yes to print the grouping of the
Attendance/Production data as defined during the creation of Types.
Show Gross Salary: Set this option to Yes by setting the Show Year To Date
values to No, to view Gross Earnings and Deductions for any given period.
o for Deduction's also: Set this option to Yes to display the Gross Salary Details for each
Deduction component.
Show Employer Contribution to NPS: Set this option to Yes to print the employer's
contribution towards the National Pension Scheme.
Remove Zero Entries: Set this option to Yes to remove the Earnings/Deductions
components with Zero value from the Pay Slip.
Appearance of Employee Names: Select the appropriate name style to appear in the Pay
Slip (i.e., Alias (Name), Alias only, Name (Alias), Name only).
Show Authorised Signatory: Set this option to Yes to print the option for signature of
the Signing Authority. Set this option to No for printing the Pay Slip Note.
o Show Payslip Note: Set this option to Yes to print the Pay Slip Note as entered in
the Payroll Configuration screen.
Show Payslip Message: Set this option to Yes to print the personalized Pay Slip
Message as entered in the Payroll Configuration screen. e.g. Happy New Year.
The printed Pay Slip with Gross Salary details is displayed as shown:
[Img-165]
Click on E-Mail button or press ALT+M from the Pay Slip display screen to Email the Pay Slip. Tally.ERP
9 gives flexibility of selecting the formats from ASCII, EXCEL, HTML and XML for E-Mailing as an
attachment or direct view.
Server Address: Specify the Outgoing E-Mail server address and port number separated
by colon (:)
Note: If the outgoi ng E - Mai l se rve r i s confi gure d on any port othe r than 25, the n the
same nee ds to be spe ci fie d afte r the se rve r name wi th a col on. e.g.
sm tp.gm ai l .com :465
Use SSL: By default this is set to No, change it to Yes if the E-Mail server is configured for
secured connection.
From: By default name of the Company is displayed, which can be changed as per the
requirement.
From E-Mail Address: By default the E-Mail address entered in the Company Master is
displayed. The user can change the same to the recent E-Mail address.
Authentication Username and Password: Enter the required username and password in
case the E-mail server requires authentication, otherwise leave it empty.
Format: Select the required emailing format from ASCII, Excel, JPEG, HTML, PDF, XML.
Resolution: Select the required resolution, recommended is 1024 x 768.
To E-Mail Address: By default the Employee E-Mail address as entered in the Employee
Master is displayed. This can be changed if required.
CC To (if any): Provide an E-Mail address in case you want to send a copy of the same
mail to more than one recipient.
Subject: By default, the Subject line is filled as Pay Slip, the user can re-enter the subject
as required.
Additional Text if any: Enter a message for the recipient which will precede the Pay Slip
in the recipient’s mail program.
Information sent: Select whether the Pay Slip needs to be sent as an Attachment or
for Direct Viewing in Mail.
Specify the other parameters as explained in the above section (printing Pay Slips).
For more instructions for completing the Mailing Pay slip screen, refer to E-mail a Report from
Tally.ERP 9.
Agenda
GST Concepts
Speaker:
Turab Haider
Terminologies use in GST
Team Attitude
Types of Return & e-filing Date
• e-filing GSTR return
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
GST (Goods and Services Tax) is a comprehensive tax levied on
supply of goods and services across India. GST (Goods and Services
Tax) is a Destination based Consumption tax, and the taxable event
Speaker: is Supply as against the existing taxable events of sale, manufacture
Turab Haider or provision of service.
Team Attitude
Draft model GST law was first made public in June 2016, after which
the Revised Draft Law was made public on 26th November 2016. It is
high time that businesses, industry/trade bodies, professional
B-2/19A,
associations and the like provide valid inputs at an early date, and
Yamuna Vihar,
ensure the final GST Law addresses all the concerns to make the
Delhi-110053
transition smooth.
Contact:
011-43522158
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053 Simple Tax Eliminates Technology Increase
Structure Cascading Effects Drive System Revenue
Contact:
011-43522158
Common threshold
limits across country Continuity of the tax
credit across the supply
Speaker: chain till it reaches the
Turab Haider Customer
Team Attitude Elimination of tax
cascading effect in the
supply chain
B-2/19A, Aggregate
Rest Of India
Yamuna Vihar, Turnover exceeds 20 Lakhs
Delhi-110053
Contact: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkhim,
011-43522158 Tripura, Himachal Pradesh and Uttarakhand
Composition Levy
Composition Scheme
50 Lakhs Special
Composition Aggregate
category States
Speaker: Levy Turnover Does
& 75 lakhs for
not exceeds
Turab Haider rest of India
Team Attitude
• Not applicable for a taxable person engaged in:
• Supply of services except supply of food or drinks
for human consumption
• Supply of goods through an electronic
B-2/19A, Rate of tax:
commerce operator
Yamuna Vihar, Manufacturer : 2%
• Interstate outward supplies
Delhi-110053 • shall not collect tax Trader : 1%
Contact: • can not claim input tax credit Supplier of foods or drinks
011-43522158 • applicable for all transaction under the PAN for human consumption : 5%
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
Tax Likely to Be Subsumed under GST
CVD
VAT Purchase CST
Tax &
Excise ADE SAD
Duty
Luxury
Tax
Speaker: Entry
Turab Haider Surcharge Service Tax
& Cess Tax
Team Attitude Surcharge
& Cess
B-2/19A,
Yamuna Vihar,
SGST/
Delhi-110053 CGST UTGST
IGST
Contact:
011-43522158
Speaker:
Turab Haider
GST
Team Attitude
B-2/19A,
Yamuna Vihar,
SGST/
Delhi-110053 CGST UTGST
IGST
Contact:
011-43522158
Determination of GST- Intra State
Location Place
of Of
Supplier Supply
Speaker:
Turab Haider
Team Attitude
Delhi
Charge
B-2/19A, of
tax
Yamuna Vihar,
Delhi-110053 CGST Intra -State SGST
Contact:
011-43522158
Determination of GST- Inter State
Location Place
of Of
Supplier Supply
Speaker:
Turab Haider Charge
Team Attitude of
Delhi tax UP
Inter -State
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
IGST
011-43522158
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
Speaker:
Turab Haider
Team Attitude
B-2/19A,
Yamuna Vihar,
Delhi-110053
Contact:
011-43522158
Introduction To GST ( IGST , CGST,
SGST)
1. The GST would be applicable on the supply of goods or services or both as against the
present concept of tax on the manufacture and sale of goods or provision of services. It
will be a destination based consumption tax.
2. There will be a dual GST with the Centre and States simultaneously levying it on a
common tax base. The GST to be levied on intra-State supplies of goods and/or services
by the Centre will be Central GST (CGST) and that to be levied by the States will be the
State GST (SGST).
3. The GST to be levied on Inter-State Supply of Goods and Services and on import of
goods and services (in the place of CVD and SAD) is Integrated Goods and Services Tax
(IGST), which is equal to CGST plus SGST. It will be levied and collected by Centre under
IGST Act, 2017. Accounts would be settled periodically between the Centre and the
States to ensure that the SGST portion of IGST is transferred to the Destination State
where the goods or services are eventually consumed.
4. The GST would apply to all goods other than alcoholic liquor for human consumption and
five petroleum products, viz, petroleum crude, motor spirit (petrol), high speed diesel,
natural gas and aviation turbine fuel. It would apply to all services barring a few to be
specified.
5. Tobacco and tobacco products would be subject to GST. In addition, the Centre would
have the power to levy Central Excise duty on these products.
6. The GST would replace the following taxes currently levied and collected by the Centre:
9. The list of exempted goods and services will be common for the Centre and the States.
10. Tax payers with an aggregate turnover in a financial year up to 20 lakhs would be
exempt from tax. [Aggregate turnover shall include the aggregate value of all taxable
and non-taxable supplies, exempt supplies and exports of goods and/or services and
exclude taxes under the Act viz. GST.] Aggregate turnover shall be computed on all
India basis. For North East States and Sikkim, the exemption threshold shall be [ 10
lakhs]. All tax payers eligible for threshold exemption however, shall have option of
paying tax and avail input tax credit (ITC) benefits.
The tax payers making inter-State supplies or paying tax on reverse charge basis shall
not be eligible for threshold exemption. In other words, The traders supplying goods to
other states will need to register under the Goods and Services Tax (GST) even if their
turnover is below Rs 20 lakh. "Rs 20 lakh registration limit is only for intra-state traders,"
11. The traders, who have turnover below Rs 20 lakh and supply goods and services within
the state, can also go for voluntary registration to avail input tax credit
"But once registered, the traders will have to pay taxes on all supplies, even if turnover
is less than Rs 20 lakh,".
Even if there were no transactions in a certain month, return would have to be filed once
registration was done
12. Small tax payers with an aggregate turnover in a financial year up to 75 lakhs shall be
eligible for composition levy. Under the scheme, a tax payer shall pay tax as a
percentage of his turnover during the year without the benefit of ITC. The floor rate of
tax for CGST and SGST shall not be less than [1%]. A tax payer opting for composition
levy shall not collect any tax from his customers. The composition scheme is optional.
The eligible taxpayers shall have the option of switching over as a regular tax payer and
thereby paying tax with ITC benefits. Taxpayers making inter-State supplies or paying
tax on reverse charge basis shall not be eligible for composition scheme.
13. Tax payers shall be allowed to take credit of taxes paid on inputs (Input Tax Credit -
ITC) and utilize the same for payment of GST on outward supplies. However, no input
tax credit on account of CGST shall be utilized towards payment of SGST and vice
versa. The credit of IGST would be permitted to b utilized for payment of IGST, CGST
and SGST in that order. ITC of cess may be utilised for payment of cess only.
14. HSN (Harmonized System of Nomenclature) Code shall be used for classifying the
goods under the GST regime.
15. Exports shall be treated as zero-rated supply. No tax is payable on export of goods or
services but credit of the input tax related to the inward supply of inputs and input
16. Import of goods and services would be treated as inter-State supplies and would be
subject to IGST in addition to the applicable customs duties. The IGST paid shall be
available as ITC for further transactions.
17. The laws, regulations and procedures for levy and collection of CGST, UTGST, IGST
and SGST has been harmonized to the extent possible.
18. GSTIN will be in the format as specified below, which shall have a checksum digit to
locate and process several data based on this unique identification number of the
taxpayer, for different business processes like populating data in the domain of
connected taxpayers, managing mismatches at item level of supply and purchase data,
fund settlement etc.
Entity Check
State Code PAN
Code Digit
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
19. Accordingly, before filing of GSRT-3 following procedure may be followed for
rectification and finalization of returns :
21. A registered taxpayer, who is registered under the Composite Scheme will pay tax at a
rate not more than 1% for manufacturer, 2.5% for restaurant sector and 0.5% for other
suppliers of turnover.
o ITC of CGST allowed for payment of CGST & IGST, in that order.
o ITC of SGST allowed for payment of SGST & IGST, in that order.
ITC of IGST allowed for payment of IGST, CGST & SGST, in that order
Any IGST credit will first be applied to set off IGST and then CGST.
Balance if any will be applied to setoff SGST.
So out of total input IGST of Rs. 18,600, firstly it will be completely setoff against IGST i.e.
3600. Then balance Rs.15,000 against CGST i.e. Rs. 10015 and remaining Balance of Rs.
4985 against SGST
From the total Output GST Rs.35,550, only Output SGST of Rs. 5030 is payable.
So the Set-Off Entries will be -
1. Setoff against CGST Output
Output CGST A/c Dr. ……… 15975
To Input CGST A/c 5960
To Input IGST A/c 10015
2. Setoff against SGST Output
Output SGST A/c Dr. ……… 15975
To Input SGST A/c 5960
To Input IGST A/c 4985
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.
To activate GST
1. Open the company for which you need to activate GST.
2. Press F11 > F3.
State: Displays the state you have selected for your company. Helps in identifying local and
interstate transactions. If you change the state, it will be updated in the company details
Link the bill reference of the payment voucher (by selecting Agst Ref in the Bill-wise
Details screen) to the purchase invoice, if you have made an advance payment.
3. Click A: Tax Analysis > F1: Detailed to view the detailed Tax Analysis report that displays the
reverse charge amount.
If the bank details are not available, you can enter them later in the Challan Reconciliation report.
6. In the Bank Allocations screen, select the ledgers, enter the amount and provide the payment
details.
7. Press Enter to save.
4. Debit the GST ledgers and enter the amount of tax credit.
5. Credit the expense ledger, or ledger grouped under Current Assets.
F12: Configure
View Summary of: This option enables you to view report with values for only goods or services
or both.
View vouchers based on HSN/SAC: This option enables you view the report with values of
goods or services that have HSN/SAC information or without these details or both.
5 B2B invoices Displays the taxable value and tax amount from taxable supplies to a
registered person recorded in the reporting period. The transactions
recorded with
Nature of transaction as
● Sales Taxable
● Interstate Sales Taxable
● Sales Exempt
● Interstate Sales Exempt
● Sales Nil Rated
● Interstate Sales Nil Rated
Taxability as
6 B2C(Large) Displays taxable value and tax amount from taxable outward supplies to a
Invoices consumer where place of supply is other than the state where supplier is
located (Inter-state supplies) and invoice value is more than Rs 2.5 lakh.
The transactions recorded with,
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration Type as
● Unregistered
● Consumer
● Unknown (with GSTIN)
7 B2C(Small) Displays taxable value and tax amount from taxable outward supplies to
Invoices consumer (Other than captured in table 6). The transactions recorded with
Nature of transaction as:
· Interstate Sales Taxable
· Interstate Sales Exempt
· Sales Taxable
· Sales Exempt
· Sales Nil Rated
7A Amendments to Displays amendments to details of taxable value and tax amount from
B2C(Small) Invoices taxable outward supplies to consumer (Other than captured in table 6) of
earlier tax periods.
8 Credit/Debit Notes Displays the taxable value and tax amount from credit and debit notes
recorded in the reporting period. The credit and debit note transactions
recorded with
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
● Sales Taxable
● Sales Exempt
● Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Regular
● Composite
● Unknown (with GSTIN)
8A Amendments to Displays amendment to details of credit and debit notes of earlier tax
Credit/Debit Notes periods.
10 Exports Invoices Displays the taxable value and tax amount from supplies exported
(including deemed exports) in the reporting period. The transactions
recorded with,
Nature of transaction as
● Exports Taxable
● Exports - LUT/Bond
● Exports Exempt
● Deemed Exports Taxable
● Deemed Exports Exempt
● Sales to SEZ - Taxable
● Sales to SEZ - Exempt
● Sales to SEZ - LUT/Bond
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Composite
● Consumer
10A Amendments to Displays details of amendments to supplies exported of earlier tax periods.
Exports Invoices
11 Tax Liability on Displays tax liability arising on account of time of supply without issuance
Advances of invoice in the same period. The tax amount credited in the receipt
transactions recorded by using the option Advance Receipt are captured
in this table.
11A Amendments to Displays details of amendments to tax liability arising on account of time of
Tax Liability on supply without issuance of invoice in the same period.
Advances
12 Setoff of Tax Displays tax already paid (on advance receipt/ on account of time of
Paid against supply) on invoices issued in the current period. Displays the tax amount
Advances from sales transactions for which tax liability was created in advance
receipts recorded in previous period.
8. Press Enter.
9. The Address Type screen for the ledger being created appears.
10. Type the name of the Party’s Location (E.g. Supplier A WH-1).
7. Press Enter.
Note: Enable the option Allow Separate Buyer and Consignee Names in F12: Configure to
9. Press Enter.
10. Select the Purchase ledger.
11. Select the Item, Quantity, and Rate.
12. Press Enter.
13. Press Ctrl+A to save the transaction.
4. Click Enter to save the configuration and go to the Ledger Creation screen.
Note: The option Use Multiple Addresses can also be enabled from Gateway of Tally > F12:
8. Press Enter.
9. The Address Type screen for the ledger being created appears.
10. Type the name of the Party’s Location (E.g. Supplier A WH-1).
7. Press Enter.
Note: Enable the option Allow Separate Buyer and Consignee Names in F12: Configure to
enter Consignee details.
8. The Supplier’s Details screen after selecting the required Address Type appears as shown:
The auto-calculated value for the default ledgers can be viewed in the alteration mode. Open
the invoice in alteration mode, and press Enter from the field Amount.
As in tax-inclusive voucher class, the tax values will be applied automatically in the invoice. There
Click here for more information about the Methods of Numbering available.
6. Enable Use effective dates for vouchers to enter effective dates for vouchers.
Note: Select this option if you have a transaction under consideration for overdue/ageing analysis
recorded currently but will come into effect on another date. If the effective date is entered, the
overdue/ageing will be considered from the effective date and not from voucher date.
7. Enable Make this voucher type 'Optional' by default to set your voucher to optional voucher
by default.
Note: For Memorandum and Reversing Journal voucher the option Make this voucher type
'Optional' by default is not available.
8. Enable Allow narration in voucher to give a common narration for voucher. A common
narration screen for voucher appears as shown below:
For Delivery Note, Receipt Note, Sales order, Purchase order, Physical Stock, Stock Journal,
4. Select or enter required information for the first exception type. Further, you can click F5:
Recompute or A: Accept as is to recompute or accept the details, respectively.
3. Select the state, specify the GSTIN and select dealer type for each transaction.
4. Press Ctrl+A to accept.
Note: Click X: Exclude Vouchers to exclude the voucher from GSTR-2 return.
Recompute
To resolve this exception
Resolve
To resolve this exception
1. Select the exception Mismatch due to tax amount modified in voucher.
2. Press Enter. All the transactions of the exception type are displayed.
3. Select the required transaction.
4. Click R: Resolve, and enter the tax value in As per transaction column of the voucher.
The Exception Resolution screen appears as shown below:
Accept as is
To resolve this exception
1. Select the exception Mismatch due to tax amount modified in voucher.
2. Press Enter. All the transactions of the particular exception are displayed.
3. Select the required voucher and click A: Accept as is. A message is displayed as shown below:
Item Exceptions
Click I: Item Exceptions to alter the view of Vouchers with incomplete/mismatch in
information report to display vouchers with incomplete/mismatch of information in item master. The
vouchers with exceptions are displayed against different exception types in 2 columns:
Total Masters
Drill down from this column to view information missing/mismatch in item at master level. You can
provide the required details at stock group level to update all items in the group or at individual item
level. By providing required information at item master level, all voucher level exceptions resulting
from that item are resolved.
To update the information and resolve exception at master level
1. Click I: Item Exceptions.
2. Navigate to the required exception type and press Enter from Total Masters column to
display Multi Stock Alteration screen.
2. Navigate to required exception type and press Enter from Total Masters column to
display Exception Resolution screen, as shown below:
Ledger Exceptions
Click L: Ledger Exceptions to view of Vouchers with incomplete/mismatch in
information report displays vouchers with missing/mismatch of information in ledger master. The
vouchers with exceptions are displayed against different exception types in 2 columns:
Total Masters
Drill down from this column to view information missing/mismatch at ledger master level. You can
provide the required details at ledger group level to update all ledgers in the group or at individual
ledger level. By providing required information at leger master level, all voucher level exceptions
resulting from that ledger are resolved.
To update the information and resolve exception at master level
1. Click L: Ledger Exceptions.
2. Navigate to required exception type and press Enter from Total Masters column to display Multi
2. Navigate to required exception type and press Enter from Total Vouchers column to
display Exception Resolution screen, as shown below:
By default, the table-wise format displays rows related to values for the current reporting period, and
rows of previous period amendments, if values are available. To view all the amendment rows,
enable the option Show amendment tables with zero values?under F12: Configure.
4 B2B invoices Displays the taxable value and tax amount from taxable supplies to a
registered person recorded in the reporting period. The transactions are
recorded with:
Nature of transaction as
● Purchase Taxable.
● Purchase Taxable with Nature of goodsas Capital Goods when
grouped under Fixed Assets.
● Purchase From Unregistered Dealer - Taxable.
● Purchase From Unregistered Dealer - Taxable with Nature of
goods as Capital Goods when grouped under Fixed Assets.
● Purchase From Unregistered Dealer - Exempt.
● Purchase From Unregistered Dealer - Exempt with Nature of
goods as Capital Goods when grouped under Fixed Assets.
● Purchase Exempt.
● Purchase Exempt with Nature of goodsas Capital Goods when
5. Import of Goods Invoices Displays the taxable value and tax amount from supplies exported
(including deemed exports) in the reporting period. The transactions
are recorded with:
Nature of transaction as
● Imports Taxable
● Imports Taxable with Nature of goods as Capital Goods when
grouped under Fixed Assets.
● Imports Exempt
● Imports Exempt with Nature of goods as Capital Goods when
grouped under Fixed Assets.
● Purchase From SEZ - Taxable
● Purchase From SEZ - Taxable with Nature of goods as Capital
Goods when grouped under Fixed Assets.
● Purchase From SEZ - Exempt
● Purchase From SEZ - Exempt with Nature of goods as Capital
Goods when grouped under Fixed Assets.
6 Import of Service Invoices Displays the taxable value and tax amount from supplies exported
(including deemed exports) in the reporting period. The transactions
are recorded with:
Nature of transaction as
● Imports Taxable
● Imports Exempt
● Purchase From SEZ - Taxable
● Purchase From SEZ - Exempt
7 Credit/Debit Notes Displays the taxable value and tax amount from credit and debit notes
recorded in the reporting period. The credit and debit note transactions
are recorded with:
Nature of transaction as
● Purchase Taxable
● Purchase Taxable with Nature of goodsas Capital Goods when
grouped under Fixed Assets.
● Purchase From Unregistered Dealer - Taxable
● Purchase From Unregistered Dealer - Taxable with Nature of
goods as Capital Goods when grouped under Fixed Assets.
● Purchase From Unregistered Dealer - Exempt
● Purchase From Unregistered Dealer - Exempt with Nature of
goods as Capital Goods when grouped under Fixed Assets.
● Purchase Exempt
● Purchase Exempt with Nature of goodsas Capital Goods when
grouped under Fixed Assets.
● Purchase Nil Rated
● Interstate Purchase Taxable
● Interstate Purchase Taxable with Nature of goods as Capital
Goods when grouped under Fixed Assets.
● Interstate Purchase Exempt
● Interstate Purchase Exempt with Nature of goods as Capital
Goods when grouped under Fixed Assets.
● Interstate Purchase Nil Rated
Taxability as:
● Taxable
● Exempt
8 Nil Rated Invoices Displays the taxable value from nil rated, exempt, and non-GST inward
supplies. The transactions are recorded with:
Nature of transaction as
● Purchase From Composition Dealer
● Purchase Nil Rated
● Interstate Purchase Nil Rated
● Purchase Exempt
● Purchase Exempt with Nature of goodsas Capital Goods when
grouped under Fixed Assets.
● Interstate Purchase Exempt
● Interstate Purchase Exempt with Nature of goods as Capital
Goods when grouped under Fixed Assets.
● Purchase From Unregistered Dealer - Exempt
● Purchase From Unregistered Dealer - Exempt with Nature of
goods as Capital Goods when grouped under Fixed Assets.
Taxability as
● Exempt
● Nil Rated
● or Is Non-GST good? option enabled.
Registration type as
● Composite
● Unregistered
● Unknown (without GSTIN)
9 ISD Credit Displays the value of the journal voucher recorded by clicking J: Stat
Adjustment and selecting:
● The Nature of adjustment as Increase of Input Tax Credit.
● The Additional Details as ISD Transfer.
10(1) TDS Credit Displays the value of the journal voucher recorded by clicking J: Stat
10(2) TCS Credit Displays the value of the journal voucher recorded by clicking J: Stat
Adjustment and selecting:
● The Nature of adjustment as Increase of Input Tax Credit.
● The Additional Details as TCS Adjustment.
12 Tax Liability under Displays the value of the advance payment voucher recorded under
Reverse Charge on reverse charge.
Advances
13 Tax Paid under Reverse Displays the value of the advance payment voucher of the previous
Charge on Advance period, adjusted against the purchases of the current period.
14 ITC Reversal Displays the values of the journal vouchers recorded by clicking J:
Stat Adjustment and selecting Reversal of Input Tax Credit as
theNature of adjustment.
Included in returns
Displays count of all vouchers that have requisite information to comply with requirements of GST
returns. Only these transactions will be exported as part of returns. Drill down from this row to view
the Summary of Included Vouchers report, with the list of voucher-types with voucher count.
Inward Supplies
Total inward supplies (local and interstate), which include taxable value, and the corresponding tax
amount are displayed here. The total local and interstate purchases are divided
into Taxable, Exempted, Reverse Charge Supplies, and Add/Less: GST Adjustments. To view
all the purchase transactions,
1. Click F1: Detailed to display the report in detailed mode.
2. Select any of the rows displayed in regular font, under Local Purchases or Reverse Charge
Supplies.
3. Press Enter to display the Voucher Register screen, as shown below:
You can view this report ledger wise or commodity wise by clicking L: Ledger-wise or S: Stock
item-wise, and A: Party-wise respectively.
The exceptions are listed in the order of priority, based on the importance of the information for
generating returns. Hence, a voucher with multiple exceptions is listed in the exception type higher
up the order. Once that exception is resolved, the voucher will move down to the next exception
type. Such vouchers with multiple exceptions continue to be listed as exceptions until all
incomplete/mismatch information are resolved. This will ensure that all exceptions are resolved
before filing the returns as follow :
1. No. of voucher with incomplete/mismatch in information
2. UoM(s) not mapped to Unit Quantity Code (UQC)
3. Country, state and dealer type not specified
4. Tax rate/tax type not specified
5. Nature of transaction, taxable value, rate of tax modified in voucher
6. Incorrect tax type selected in tax ledger
7. Mismatch due to tax amount modified in voucher
8. Voucher with incomplete/incorrect adjustment details
9. Information required for generating table-wise details not provided
10. Exception Types
11. Filter for Item level and Ledger level exceptions
11.1. Item Exceptions
11.2. Ledger Exceptions
3. Select any transaction and press Enter to display the Voucher Details Alteration screen which
is divided into multiple sections, one for each exception in the voucher, as shown below:
3. Select the Nature of adjustment and Additional details for each voucher.
4. Press Ctrl+A to accept.
3. Select any voucher and press Enter to display the Table-wise exceptions(s) screen, as shown
below:
4. Select Party Ledger Level Corrections in the Select Exception Resolution Type screen.
5. Select the State Name, State Code and enter party GTIN number for the listed parties in
the Party Ledger Level correction screen, as shown below:
4. Select Configuration Level Corrections in the Select Exception Resolution Type screen.
2. Navigate to required exception type and press Enter from Total Masters column to
display Exception Resolution screen, as shown below:
2. Navigate to required exception type and press Enter from Total Vouchers column to
display Exception Resolution screen, as shown below:
5 B2B invoices Displays the taxable value and tax amount from taxable supplies to a
registered person recorded in the reporting period. The transactions
recorded with
Nature of transaction as
● Sales Taxable
● Interstate Sales Taxable
● Sales Exempt
● Interstate Sales Exempt
● Sales Nil Rated
● Interstate Sales Nil Rated
Taxability as
6 B2C(Large) Displays taxable value and tax amount from taxable outward supplies to a
Invoices consumer where place of supply is other than the state where supplier is
located (Inter-state supplies) and invoice value is more than Rs 2.5 lakh.
The transactions recorded with,
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration Type as
● Unregistered
● Consumer
● Unknown (with GSTIN)
7 B2C(Small) Displays taxable value and tax amount from taxable outward supplies to
Invoices consumer (Other than captured in table 6). The transactions recorded with
Nature of transaction as:
· Interstate Sales Taxable
· Interstate Sales Exempt
· Sales Taxable
· Sales Exempt
· Sales Nil Rated
7A Amendments to Displays amendments to details of taxable value and tax amount from
B2C(Small) Invoices taxable outward supplies to consumer (Other than captured in table 6) of
earlier tax periods.
8 Credit/Debit Notes Displays the taxable value and tax amount from credit and debit notes
recorded in the reporting period. The credit and debit note transactions
recorded with
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
● Sales Taxable
● Sales Exempt
● Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Regular
● Composite
● Unknown (with GSTIN)
8A Amendments to Displays amendment to details of credit and debit notes of earlier tax
Credit/Debit Notes periods.
10 Exports Invoices Displays the taxable value and tax amount from supplies exported
(including deemed exports) in the reporting period. The transactions
recorded with,
Nature of transaction as
● Exports Taxable
● Exports - LUT/Bond
● Exports Exempt
● Deemed Exports Taxable
● Deemed Exports Exempt
● Sales to SEZ - Taxable
● Sales to SEZ - Exempt
● Sales to SEZ - LUT/Bond
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Composite
● Consumer
10A Amendments to Displays details of amendments to supplies exported of earlier tax periods.
Exports Invoices
11 Tax Liability on Displays tax liability arising on account of time of supply without issuance
Advances of invoice in the same period. The tax amount credited in the receipt
transactions recorded by using the option Advance Receipt are captured
in this table.
11A Amendments to Displays details of amendments to tax liability arising on account of time of
Tax Liability on supply without issuance of invoice in the same period.
Advances
12 Setoff of Tax Displays tax already paid (on advance receipt/ on account of time of
Paid against supply) on invoices issued in the current period. Displays the tax amount
Advances from sales transactions for which tax liability was created in advance
receipts recorded in previous period.
Activity Status
To Be Uploaded: Displays the number of vouchers yet to be exported. The count vouchers that are
not yet exported to GSTR-1 return file are displayed in this column.
Uploaded: Displays the number of vouchers exported. This column is automatically updated when
a voucher is exported to GSTR-1 return file.
Rejected by GST: Displays the count of vouchers marked as Rejected by GST. You can mark the
voucher status as rejected when GST rejects the voucher for reasons such as, duplicate invoice,
reference of original transaction is not found in case of debit/credit note, GSTIN of any user being
suspended, and so on.
Accepted: Displays the count of vouchers marked as Accepted. You can mark the status as
accepted when input tax claim made by the buyer in the GSTR-1A.
Rejected: Displays the count of vouchers marked as Rejected. You can mark the status as rejected
when the buyer rejects the voucher details as displayed in the GSTR-1A.
Reconciliation Status
Not Reconciled: Displays the count of vouchers marked as Not Reconciled. You can mark the
status as Not Reconciled when the details in the online portal do not match with your books.
Reconciled: Displays the count of vouchers marked as Reconciled. You can mark the status as
Reconciled when the details in the online portal match with your books.
Set Status
Drill down from any table to view the voucher register with list of vouchers and change the status of
4. Press Escape (Esc) to return to the Status Reconciliation screen. The voucher count in
columns is changed based on the status updates.
F12: Configure
Show uncertain transactions?: Enable this option to view the number vouchers that are not
included in the returns due to incomplete information or mismatch. This voucher count is displayed
at the bottom of the Status Reconciliation screen.
● For availing tax credit on excise and service tax, debit the central tax ledger and credit the service
tax and CENVAT ledgers.
● For availing tax credit on VAT, additional tax, cess, TDS and entry tax, debit the state tax/UT tax
ledger and credit the VAT, additional tax, cess, TDS and entry tax ledgers.
Central tax Central tax and integrated tax (in that order).
Integrated tax Integrated tax, central tax, state tax/UT tax (in that order).
State tax/UT tax State tax/UT tax and integrated tax (in that order).
Utilisation of central tax ● Debit the Credit the central tax ledger
credit, when only central central tax to set-off the payable amount
● Enter the
tax credit is available. amount to the against the available credit.
extent of credit
available.
● Debit the
state tax ledger.
Utilisation of state tax Credit the state tax ledger to
● Enter the
credit, when only state set-off the payable amount
amount to the
tax credit is available. against the available credit.
extent of credit
available.
● Enter the
integrated tax credit is amount against the available
amount to the
available. credit.
extent of credit
available.
Utilisation of cess credit, ● Debit the Credit the cess ledger to set-
when only cess credit is cess ledger. off the payable amount
available. against the available credit.
● Enter the
Similarly, you can record the journal voucher by selecting the Additional Details in the Stat
Adjustment Details as:
● Penalty, for penalty payable.
● Late Fee, for late fee payable.
● Others, for other dues payable.
Advance payment
Raising liability for advance payment
Refund voucher cancellation of advance payment transaction
Cancelling the liability of advance amount to the extent the transaction is
cancelled
Advance Payment
To record a payment voucher for advance payment
1. Go to Gateway of Tally > Accounting Vouchers > F5: Payment.
2. Click V: Reverse Chrg. Adv. to mark the voucher for advance payment.
3. Account: Select the bank to which the payment will be made.
4. Select the party ledger enabled for bill-wise details.
5. In the Advance Payment Details screen:
The Advance Amount appears as the Taxable Value, and the tax amount is calculated on this. The
tax values shown in the Advance Payment Details is the amount on which you need to generate
the liability in a journal voucher if the purchase invoice is not recorded within the return period.
The tax type appears as integrated tax or central tax and state tax, based on the state selected for
the party ledger.
7. Press Ctrl+A to save the Advance Payment Details screen.
8. Select the type of reference as Advance and enter the reference details in the Bill-wise
Details screen.
9. Accept the payment voucher.
The Advance Amount appears as the Taxable Value, and the tax amount is calculated on this. The
tax values shown in the Advance Payment Details is the amount on which you need to generate the
liability in a journal voucher.
7. Press Ctrl+A to accept and return to payment voucher.
8. Select the type of reference as Agst Ref and select the reference details in the Bill-wise
Details screen.
9. Set Provide GST details? to Yes, and enter the Receipt No. and Date of the advance receipt.
10. Press Enter to save.
11. Click P: Print and set Print Refund Voucher? to Yes, as shown below:
3. Debit the GST ledgers and credit the expense ledger, or ledger grouped under Current Assets.
6. Provide GST details: Enable this option to enter the bank details.
If the bank details are not available, you can enter them later in the Challan Reconciliation report.
7. In the Bank Allocations screen, select the ledgers, enter the amount and provide the payment
details.
8. Press Enter to save.
Similarly, you can record other tax payments to be made to the GST department.
2. In Original invoice no., enter the invoice number of the original sales transaction against which
you are recording the current sales return.
3. In Party’s A/c Name, select the party against which the original sales was made.
4. Select the central tax and state tax ledgers.
5. Provide GST details: Enable this option if you want to enter additional details about the
purchase return.
2. In Party A/c name, select the customer ledger or the cash ledger.
3. Select the sales ledger. You can also create separate sales ledgers for taxable exports, exempt
exports, and exports under LUT/bond, and select them during the transaction.
4. Select the integrated tax ledger if it is a taxable export.
5. Provide GST details - Yes, if you want to enter additional details regarding the export
transaction.
2. Select the applicable tax ledgers (central and state/union territory taxes for local supply,
integrated tax for interstate supply).
2. Is GST Applicable? - Not Applicable. The option Include in assessable value calculation
for appears.
3. Include in assessable value calculation for - GST.
o Appropriate to - Goods, as the principal supply is considered as goods in this example.
4. Press Ctrl+A to accept.
Provide GST details: Enable this option if you want to enter additional details regarding the
export transaction.
Note :
While recording any type of sales transaction, you can choose either of the following methods:
● Method 1: For a specific type of sales transaction, you can create or update the sales
ledger with the relevant Nature of transaction. Now select this sales ledger while
recording the sales transaction.
2. In Party A/c name, select the buyer, and enter the relevant details in the Party
Details screen.
o In Consignee, click Alt+M to select the consignee ledger.
2. In Party A/c name, select the customer ledger or the cash ledger.
4. Select the required items, and specify the quantities and rates.
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax
break-up.
6. In the sales invoice, press Alt+P to print the invoice in the required format.
For multiple copies: Press Alt+P and then Alt+C to select the number of copies.
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax
break-up.
Depending on the location of the party, you can record a local or interstate sales transaction
with the applicable GST rates, and print the invoice.
Method of Voucher Numbering? - Automatic (Manual Override). By selecting this option, you
can auto-number your vouchers and also manually override the auto-numbering when required.
Prevent duplicates? - Yes, to ensure unique voucher numbers.
Use advanced configuration? - Yes, to open the Voucher Type Creation (Secondary) screen.
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax
break-up.
4. Debit the ledger grouped under Current Assets and credit the integrated tax ledger.
2. Debit the integrated tax ledger and credit the ledger grouped under Current Assets.
You can record journal vouchers related to import of trading and capital goods as given below:
Increase of Input Tax Import of Capital Debit: GST ledgers (integrated tax/state tax
2. Debit the integrated tax ledger and credit the ledger grouped under Current Assets.
You can record journal vouchers related to import of trading and capital goods as given below:
Increase of Input Tax Import of Capital Debit: GST ledgers (integrated tax/state tax
2. Debit the integrated tax ledger and credit the ledger grouped under Current Assets.
You can record journal vouchers related to import of trading and capital goods as given below:
Increase of Input Tax Import of Capital Debit: GST ledgers (integrated tax/state tax
2. Exempt Purchases
The local or interstate purchase of goods or services exempted from GST can be recorded using
a purchase voucher. In the masters of the exempted goods or services, Taxability should be set
to Exempt in the GST Details screen.
● Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
● Select the applicable purchase ledger. For example, Exempt Purchases.
● Method 2: Select the common purchase ledger during the purchase transaction.
Press F12 and enable the option Allow modification of tax details for GST? Now
select the Classification/Nature.
Depending on the location of the party, you can record a local or interstate nil rated purchase
transaction.
3. SEZ Purchases
The purchase of goods and services from a party in an SEZ can be recorded using a purchase
voucher. In an SEZ purchase transaction, taxes are applicable based on the type of purchase:
● Taxable SEZ purchase: In SEZ purchases, integrated tax is applicable for both local and
interstate parties.
● Exempt SEZ purchase: No tax is applicable.
● SEZ purchase under LUT/bond: No tax is applicable. SEZ purchases under LUT/bond
are allowed when your supplier has signed up a letter of undertaking with the department
for the sale of goods without the payment of duty. While passing the purchase
transaction, you can select either the ledger created for exempt SEZ purchases or the
common purchase ledger.
To record SEZ purchases
● Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
● Select the applicable purchase ledger. For example, SEZ Purchases.
● Method 2: Select the common purchase ledger during the purchase transaction.
Press F12 and enable the option Allow modification of tax details for GST? Now
select the Classification/Nature.
Depending on the location of the party, you can record a local or interstate nil rated purchase
transaction.
3. SEZ Purchases
The purchase of goods and services from a party in an SEZ can be recorded using a purchase
voucher. In an SEZ purchase transaction, taxes are applicable based on the type of purchase:
● Taxable SEZ purchase: In SEZ purchases, integrated tax is applicable for both local and
interstate parties.
● Exempt SEZ purchase: No tax is applicable.
● SEZ purchase under LUT/bond: No tax is applicable. SEZ purchases under LUT/bond
are allowed when your supplier has signed up a letter of undertaking with the department
for the sale of goods without the payment of duty. While passing the purchase
transaction, you can select either the ledger created for exempt SEZ purchases or the
common purchase ledger.
To record SEZ purchases
● Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
● Select the applicable purchase ledger. For example, SEZ Purchases.
● Follow the steps used for recording a local purchase transaction, with the following
changes:
o In Party A/c name, select Cash ledger i.e. Cash .
The Supplementary Details should be as below with Address, State, GST Registration
Type , GSTIN/UIN & Type of Dealer :
o Select the purchase ledger applicable for interstate purchases for each item i.e.
Inter-state Purchase @ 18% for Hp-Laptop & Inter-state Purchase @ 12% for Mi Note 4
Mobiles.
Depending on the location of the supplier, you can record a local or interstate purchase
transaction with the applicable GST rates
You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax
break-up.
6. Set/alter GST Details - Yes, specify the details in the GST Details screen as below ,
and Save.
o Purchase @ 28%
o Purchase @ 12%
o Purchase @ 5%
6. Set/alter GST Details - Yes, specify the details in the GST Details screen as below ,
and Save.
o Purchase @ 28%
o Purchase @ 12%
o Purchase @ 5%
The rate entered for integrated tax will be equally divided between central tax and
state tax.
To view the history of tax rate changes, press Alt + L.
To specify further GST-related details, click F12: Configure.
In order to remove a tax rate, use the option Ctrl+C (Clear Rate). You can clear rate of multiple
items or groups by selecting them using Spacebar. You can also clear rate from items under a
group and automatically infer tax details recorded at group level to sub-groups and items using
the option F: Enforce Rate.
State: Displays the state you have selected for your company. Helps in identifying local and
interstate transactions. If you change the state, it will be updated in the company details.
Note: The option Calculation type is available only at the stock item level. You can set the
F12: Configure
The F12 configuration options available at the stock item, stock group, and ledger levels, and the
options enabled on setting them to Yes in the GST Details screen are shown below:
Note: You can press Alt+A in GSTR-1 report to change the view from return format to summary
view and vice-versa.
● Specify the required reporting period by pressing F2.
By default, the transactions having voucher numbers more than 16 characters, including special
characters ("-" and "/") are not exported to the e-return template. To include these vouchers,
use F12: Configure.
The exceptions are listed in the order of priority, based on the importance of the information for
generating returns. You need to update the missing information and resolve the mismatches to
include these in the returns.
By default the table-wise format displays rows related to values for current reporting period. And rows of previous
period amendments, if values are available. To view all the amendment rows, enable the option Show amendment
tables with zero values? under F12: Configure.
5 B2B invoices Displays the taxable value and tax amount from taxable supplies to a
registered person recorded in the reporting period. The transactions
recorded with
Nature of transaction as
● Sales Taxable
● Interstate Sales Taxable
● Sales Exempt
● Interstate Sales Exempt
● Sales Nil Rated
● Interstate Sales Nil Rated
Taxability as
6 B2C(Large) Displays taxable value and tax amount from taxable outward supplies to a
Invoices consumer where place of supply is other than the state where supplier is
located (Inter-state supplies) and invoice value is more than Rs 2.5 lakh.
The transactions recorded with,
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration Type as
● Unregistered
● Consumer
● Unknown (with GSTIN)
7 B2C(Small) Displays taxable value and tax amount from taxable outward supplies to
Invoices consumer (Other than captured in table 6). The transactions recorded with
Nature of transaction as:
· Interstate Sales Taxable
· Interstate Sales Exempt
· Sales Taxable
· Sales Exempt
· Sales Nil Rated
7A Amendments to Displays amendments to details of taxable value and tax amount from
B2C(Small) Invoices taxable outward supplies to consumer (Other than captured in table 6) of
earlier tax periods.
8 Credit/Debit Notes Displays the taxable value and tax amount from credit and debit notes
recorded in the reporting period. The credit and debit note transactions
recorded with
Nature of transaction as
● Interstate Sales Taxable
● Interstate Sales Exempt
● Interstate Sales Nil Rated
● Sales Taxable
● Sales Exempt
● Sales Nil Rated
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Regular
● Composite
● Unknown (with GSTIN)
8A Amendments to Displays amendment to details of credit and debit notes of earlier tax
Credit/Debit Notes periods.
10 Exports Invoices Displays the taxable value and tax amount from supplies exported
(including deemed exports) in the reporting period. The transactions
recorded with,
Nature of transaction as
● Exports Taxable
● Exports - LUT/Bond
● Exports Exempt
● Deemed Exports Taxable
● Deemed Exports Exempt
● Sales to SEZ - Taxable
● Sales to SEZ - Exempt
● Sales to SEZ - LUT/Bond
Taxability as
● Taxable
● Exempt
● Nil Rated
Registration type as
● Composite
● Consumer
10A Amendments to Displays details of amendments to supplies exported of earlier tax periods.
Exports Invoices
11 Tax Liability on Displays tax liability arising on account of time of supply without issuance
Advances of invoice in the same period. The tax amount credited in the receipt
transactions recorded by using the option Advance Receipt are captured
in this table.
11A Amendments to Displays details of amendments to tax liability arising on account of time of
Tax Liability on supply without issuance of invoice in the same period.
Advances
12 Setoff of Tax Displays tax already paid (on advance receipt/ on account of time of
Paid against supply) on invoices issued in the current period. Displays the tax amount
Advances from sales transactions for which tax liability was created in advance
receipts recorded in previous period.
Outward Supplies
Total outward supplies (local and interstate), which include taxable value, and the corresponding tax
amount are displayed here. The total local and interstate sales are divided
into Taxable and Exempted. To view all the sales transactions,
1. Click F1: Detailed to display the report in detailed mode.
2. Select any of the rows displayed in italics, under Local Sales or Interstate Sales.
3. Press Enter to display the Voucher Register screen, as shown below:
Transaction Types
Excluded by User: Displays the count of vouchers manually excluded by user from list of included
or uncertain transactions. Drill down will lead to list of all the excluded vouchers. An excluded
voucher can be included by clicking I: Include Vouchers. Based on information in the voucher it will
move to either included or uncertain.
Contra Vouchers: Displays the count of contra entries which involve only bank and cash ledgers.
Drill down to view all the contra vouchers.
Order Vouchers: Displays the count of sales order, purchase order, job work in order and job work
out order vouchers. Drill down to view the all order vouchers.
Inventory Vouchers: Displays the count of receipt note, stock journal, delivery note, material in,
material out, rejections in, rejections out and physical stock vouchers as they are purely inventory in
nature and do not attract GST . Drill down to view all inventory vouchers.
Payroll Vouchers: Displays the count of transactions recorded using payroll and attendance
vouchers. GST does not apply to these transactions. Drill down to view all the payroll vouchers.
No GST Implications: Displays the count of receipts, payments, and journal vouchers that do not
have any GST implication. Drill down to view all the vouchers.
Other voucher: Displays the count of memorandum and reversing journal vouchers. Drill down to
view all memorandum and reversing journal vouchers.
Non GSTR-1 Transactions: Displays the transactions which are part of other returns, for example:
Vouchers with incomplete/mismatch in information list includes voucher that contain GST
details but are not included in the count of Included in returnsand Not relevant for returns due to
incomplete information or mismatch.
You can correct exceptions in the vouchers before exporting GST returns. The Vouchers with
incomplete/mismatch in information report appears as shown below:
The exceptions are listed in the order of priority, based on the importance of the information for
generating returns. Hence, a voucher with multiple exceptions is listed in the exception type higher
up the order. Once that exception is resolved, the voucher will move down to the next exception
type. Such vouchers with multiple exceptions continue to be listed as exceptions until all
incomplete/mismatch information are resolved. This will ensure that all exceptions are resolved
before filing the returns as follow :
1. No. of voucher with incomplete/mismatch in information
However, vouchers with only one exception are moved to Included in returns list after that
exception is resolved.
4. Select or enter required information for the first exception type. Further, you can click F5:
Recompute or A: Accept as is to recompute or accept the details, respectively.
5. Press Enter to navigate to next exception type.
6. Resolve the exceptions by providing details or using the buttons provided.
7. Press Enter after all exceptions in the voucher are resolved to view the next voucher with
respective exceptions.
8. Continue resolving the exceptions voucher by voucher, or press Esc to return to Exception
3. Select the Nature of adjustment and Additional details for each voucher.
4. Press Ctrl+A to accept.
3. Select any voucher and press Enter to display the Table-wise exceptions(s) screen, as shown
below:
4. Select Party Ledger Level Corrections in the Select Exception Resolution Type screen.
5. Select the State Name, State Code and enter party GTIN number for the listed parties in
the Party Ledger Level correction screen, as shown below:
4. Select Configuration Level Corrections in the Select Exception Resolution Type screen.
2. Navigate to required exception type and press Enter from Total Masters column to
display Exception Resolution screen, as shown below:
2. Navigate to required exception type and press Enter from Total Vouchers column to
display Exception Resolution screen, as shown below:
Resolving Incomplete/Mismatch in
Information (GSTR-1) in Tally.ERP9
If a voucher has multiple exceptions, on resolving one exception it will move to the next exception
category until all exceptions are resolved and entries moved to Included in Returns.
To resolve all exceptions
1. Drill down on No. of voucher with incomplete/mismatch in information.
2. Select any voucher and press Enter to display the Table-wise exceptions(s) screen.
3. Enter the missing information or update the incorrect details, and press Enter to return to
the Exception Resolution screen.
4. Repeat step 3 for all the required vouchers.
Exception Types
Using this option you can resolve exceptions from a common screen by grouping all table-wise
related exceptions into two buckets Party Ledger level Corrections and Configuration Level
Corrections.
To resolve all party ledger level exceptions
1. Select Information required for generating table-wise details not provided, and press Enter.
2. Press Ctrl+E.
Note: The Contact person, Phone number, Mobile number and E-mail columns will appear as
per the details provided in the party ledger (by enabling the option Provide contact details in
configuration screen of party ledger).
5. Press Ctrl+A to accept.
To resolve all configuration level exceptions
1. Select Information required for generating table-wise not provided, and press Enter.
2. Press Ctrl+E.
3. Select Configuration Level Corrections in the Select Exception Resolution Type screen.
Invoice Number Displays the voucher number of the outward supply transactions.
Special characters other than "-" and "/" in the voucher number are not exported.
If the length of the voucher number is more than 16 characters, including the
special characters, offline tool will display a validation error.
Invoice Value Displays the total value of the voucher including tax and cess.
Place Of Supply Displays the State Name and state Code based on the Place of Supply of the
buyer in the Party Details screen of the voucher.
E-Commerce Displays the GSTIN/UIN of the e-commerce operator party selected in the
GSTIN voucher.
Displays the GSTIN/UIN of the buyer selected in the Party Details screen of the
voucher, in the GSTIN/UIN of Recipient column of this worksheet.
Note: The GSTIN/UIN of the e-commerce operator party selected in the
voucher, and the GSTIN/UIN entered in Party Details screen of the voucher
should be different.
Taxable Value Displays the assessable value entered for each tax rate.
Invoice Value Displays the total value in the invoice including tax and cess.
Place Of Displays the State Name and state Code based on the Place of Supply of the buyer
Supply in the Party Details screen of the voucher.
Taxable Displays the assessable value entered for each tax rate.
Value
Place Of Displays the State Name and state Code based on the Place of Supply of the
Supply buyer in the Party Details screen of the voucher.
Taxable Value Displays the assessable value entered for each tax rate.
GSTIN/UIN of Displays the GSTIN/UIN entered in the Party Details screen of the
Recipient debit/credit note.
Displays the GSTIN/UIN entered in the Statutory Details screen of the
journal voucher recorded for the cancellation of advance receipt.
Document Type Displays the document type based on the voucher type:
● C for Credit Note
● D for Debit Note
● R for journal voucher
Reason For Issuing Displays the Nature of Return selected in the Statutory Details screen
document of credit note and debit note.
When the transaction is recorded in journal voucher, the reason appears
as 07-Others.
Place Of Supply Displays the State Name and state Code based on the Place of Supply of
the buyer in the Party Details screen of the voucher.
Displays the Place of Supply entered in the Statutory Details screen of the
journal voucher recorded for the cancellation of advance receipt.
Taxable Value Displays the assessable value entered for each tax rate.
Pre GST Displays Y if the Original Invoice Dt. entered is prior to 1-Jul-2017,
else N.
UR Type Displays:
● B2CL if the nature of transaction is of interstate sales.
● EXPWP, if the nature of transaction is selected as Exports
Taxable and Exports Exempt.
● EXPWOP, if the nature of transaction is selected as Exports
LUT/Bond.
Note/Refund Voucher Displays the voucher date of payment, debit note, and credit note.
date
Displays the Refund Voucher Date entered in the journal voucher.
The voucher number entered in the GST Details screen of journal
voucher appears here.
Document Type Displays the document type based on the voucher type:
● C for Credit Note
● D for Debit Note
● R for journal voucher
Invoice/Advance Displays the original invoice number of sales or advance receipt linked to
Receipt Number credit note and debit note.
Displays the Advance Receipt Number entered in the Statutory
Details screen of journal voucher.
Special characters other than "-" and "/" in the Original invoice no. are not
exported.
If the length of the Original invoice no. is more than 16 characters,
including special characters, the offline tool will display a validation error.
Invoice/Advance Displays the original voucher date of sales or advance receipt linked to
Receipt date credit note and debit note.
Displays the Advance Receipt Date entered in the journal voucher.
Reason for Issuing Displays the Nature of Return selected in the Statutory Details screen
document of credit note and debit note.
When the transaction is recorded in journal voucher, the reason appears
as 07-Others.
Rate Displays the integrated tax rate with decimal places. If the stock item is
exempt, the tax rate appears as 0.00.
Taxable Value Displays the assessable value entered for each tax rate.
Pre GST Displays Y if the Original Invoice Dt. entered is prior to 1-Jul-2017,
else N.
exp Displays the details of table 6 Exports Invoices - 6Aof GSTR-1 report.
Displays the values of export sales recorded in the reporting period with the
following details:
Nature of transaction as
● Exports Taxable
● Exports - LUT/Bond
● Exports Exempt
Invoice Value Displays the total value of the sales voucher based on tax rates.
Port Code Displays the Port Code of 6 characters entered in the Statutory Details screen of
the sales invoice. If the length of Port Code is more than 6 characters, the offline tool
will display validation error.
Shipping Bill Displays the Shipping bill no. entered in the Statutory Details screen of the
Number sales invoice.
Shipping Bill Displays the shipping bill Date entered in the Statutory Details screen of the sales
Date invoice.
Taxable Displays the assessable value entered for each tax rate.
Value
Gross Advance Displays the assessable value entered for each tax rate.
Received
Place Of Supply Displays the State Name and state Code based on the Place of Supply of the
buyer in Party Detailsscreen of the voucher.
Displays the Place of supply entered in the Statutory Details screen of journal
voucher.
Gross Advance Displays the assessable value entered for each tax rate.
Adjusted
exemp Displays the details of table 9 Nil Rated Invoices of GSTR-1 report.
Displays the net values of nil rated, exempt, and non-GST outward
supplies made to registered and unregistered dealers within and outside
the state.
Nil Rated Supplies Displays the net sale value of nil rated supplies made to registered or
unregistered dealers within or outside the state.
Exempted (other than nil Displays the net sale value of exempt supplies made to registered or
rated/non GST supply) unregistered dealers within or outside the state.
Non-GST supplies Displays the net sale value of non-GST goods sold to registered or
unregistered dealers within or outside the state.
hsn Displays the details of table 10 HSN wise Summary - 12 of GSTR-1 report.
Displays the HSN of stock items/groups.
HSN Displays the HSN/SAC predefined for the ledger, stock group, or stock item
selected in the voucher.
Description Displays the Description of the HSN/SAC predefined for the ledger, stock group,
or stock item selected in the voucher. If HSN or HSN description is not defined for
stock items and ledgers, the name of the stock items and ledgers are displayed.
UQC Displays the Unit Quantity Code (UQC) predefined for the unit of measure linked
to the stock item selected in the voucher.
Displays the UQC as OTHERS-OTH for services.
Total Quantity Displays the total quantity based on HSN/SAC and UQC.
Total Value Displays the voucher value based on HSN/SAC and UQC.
Taxable Value Displays the assessable value based on HSN/SAC and UQC.
Integrated Tax Displays the integrated tax amount based on HSN/SAC and UQC.
Amount
State/UT Tax Displays the state tax amount based on HSN/SAC and UQC.
Amount
Cess Amount Displays the cess amount based on HSN/SAC and UQC.
Nature of Displays the transaction count of voucher type used for each nature of documents
Document recorded during the return period.
Sr. No. From Displays the first voucher number of the voucher type recorded for each nature of
document during the return period.
Sr. No. To Displays the last voucher number of the voucher type recorded for each nature of
document during the return period.
Total Number Displays the number of vouchers as per each nature of document recorded during
the return period.
Cancelled Displays the number of vouchers cancelled during the return period.
3. Extract the offline tool from the .zip file and install it.
If you are using an older version of the GST Offline Tool, you have to uninstall it and install the
latest version.
To uninstall:
♦ On your computer, go to Control Panel > Programs and Features.
♦ Right click GST Offline Tool, and click Uninstall and proceed.
♦ Similarly, uninstall the Node.js application.
♦ Delete the installation folder of the older version.
♦ Restart your computer. Now you can download and install the latest version of the GST Offline
Tool.
2. Export GSTR-1
You can export your GSTR-1 data either in MS Excel or CSV format. Before exporting GSTR-1,
resolve the exceptions in your transactions by going to the Summary of Exceptions (GSTR-1).
Note: The requirement to pay tax on advance receipts from customers has been withdrawn for
businesses with annual aggregate turnover up to Rs. 1.5 crores. To support this, calculation of tax
liability on advance receipts from customer has been disabled by default in Release 6.1.1.
The value from transactions recorded for tax liability on advance receipt from customers will not be
included in the GSTR-1 returns by default. Such transactions will be under Not relevant for
returns in the GSTR-1 report. The businesses with turnover above Rs. 1.5 crores can enable the
same by setting the option Enable tax liability on advance receipts to Yes in the Company GST
Details screen.
To Export GSTR-1
1. Go to Gateway of Tally > Display > Statutory Reports > GST > GSTR-1.
SQM-SQUARE
Multiply by 0.00064516
METERS
Note: The e-Return file has provision to capture the taxable value and tax rate but not the tax
amount. Hence, the tax amount is not exported to the e-Return file. Tax value is automatically
calculated after upload to the portal based on rate, taxable value and place of supply.
Note: If the tool shows a warning that some invoices contain invalid input, you can ignore it and
proceed. This happens when you do not have transactions in the given sections.
To export the return details in the CSV format, select the name of the table in Select
Section under Return Import – One section at a time, and click Import CSV. You have to
individually import files for each section.
6. Click YES on the warning message, and click VIEW SUMMARY.
The offline tool generates a JSON file that has to be uploaded on the GST portal.
Once your JSON file is uploaded successfully, you will be notified by a message.
8. Go to the 8A, 8B, 8C, 8D - Nil Rated Supplies page, and enter the details.
GSTR1 Introduction
As per the guidelines set by the GST Council, a registered taxable person is to follow a standard
return filing process, involving 3 forms – outward supplies details in GSTR 1 form by 10th of the
following month, corrections (if any) in GSTR 2 form by the 15th and finally the auto-populated
GSTR 3 form for final submission and payment, by the 20th.
With the government interested to bring in a smooth transition to GST, the return filing dates are
slightly different for the first two months of July and August. While one can file an interim return
in GSTR 3B for the months of July and August, one will need to ultimately file detailed returns via all
3 forms, as per the following revised return filing last dates -
Click here to view the tables and understand the GSTR 1 format.
With the filing of GSTR-3B right around the corner on 20th August, 2017, businesses are in full
swing gearing up to meet the deadline. Having said in our earlier blog ‘How to File Form GSTR-
3B’, Form GSTR-3B is an interim return which needs to be filed for first 6 months: July to December,
2017 (Revised ). However, this does not mean that the businesses are not required to file GSTR-1,
Form GSTR-2 and Form GSTR-3. It means, only the deadline to file GSTR-1, GSTR-2 and GSTR-3
are extended, and the businesses still need to file these return as per revised dates mentioned
below:
July, 2017 10th October, 2017 31st October, 2017 10th November, 2017
The above dates are only for July 2017 returns. The dates for August and subsequent month’s
returns will be notified at a later date.
As a step towards early preparation and to ease the GSTR-1 filing, the option for creation and saving
of Form GSTR-1 are available on the GST portal from 24th July, 2017. Subsequently, as recipient of
goods or services, the option to view the data uploaded by your suppliers is available in Form
GSTR-2A. In this blog, we will be discussing on How to File GSTR-1. From September onwards, the
due date to file GSTR-1 is 20th August, 2017.
Before we start discussing on how to file GSTR-1, let us understand what is Form GSTR-1 is all
about.
What is GSTR-1
Form GSTR-1 is a statement in which a regular dealer needs to capture all the outward supplies
made during the month. Broadly, all the outward supplies made to registered businesses (B2B) are
required to be captured at invoice level, and supplies made to unregistered business or end
consumers are required to be captured at rate-wise. However, in certain exceptional scenario, even
B2C transactions are required to be captured at invoice level.
In the above table 1, you need to capture the GSTIN allotted to you. Based on the GSTIN, table 2(a)
and 2(b) would be auto-populated with details furnished during registration or enrollment. In table
3(a), you need to capture the aggregate turnover of previous financial year, and in 3(b), aggregate
turnover of the last quarter (April to June, 2017) needs to be captured manually.
The quarterly turnover information is not to be captured in subsequent returns, and the aggregate
turnover of previous financial year would be required to be submitted by the taxpayers only in the
first year. From subsequent years, it will be auto-populated.
2. Taxable outward supplies made to registered persons (including UIN-holders) other than Zero Rated supplies and
Deemed Exports.
In above table, all inter-State B2C supplies (supplies made to unregistered dealer or end consumer),
where invoice value is more than Rs. 2,50,000, you need to upload the invoice-wise and rate-wise
details. Similar to table 4, you need to capture the supplies effected through e-commerce operator
separately in 5B and all other interstate supplies having invoice value more than Rs. 2,50,000 to be
captured in 5A. This type of supplies are referred as B2C Large.
In the above table 6, the information related to exports out of India to be captured in 6A, supplies to
SEZ unit or SEZ developer in 6 B, and deemed exports in 6C. The details of these supplies need to
be captured at invoice-wise and rate-wise. In declaring these details, the following points needs to
be taken care of:
1. Shipping bill and its date. The details of Shipping Bill shall be furnished in 13 digits
capturing port code (six digits) followed by unique reference number of shipping bill and its
date. If the shipping bill details are not available at the time of filing GSTR-1, the same can
be left blank and can be updated as amendment in Table 9 in the next tax period in which
the details are available but before claiming any refund/rebate related to the said invoice.
2. Any supply made by SEZ to Domestic Tariff Area (DTA), without the cover of a Bill of Entry is
required to be reported by SEZ unit in GSTR-1. The supplies made by SEZ on cover of a Bill
of Entry shall be reported by DTA unit in its GSTR-2 as Imports in GSTR- 2.
3. In case of export transactions, GSTIN of recipient will not be applicable and it needs to be
left blank.
4. Export transactions effected without payment of IGST (under Bond/Letter of Undertaking
(LUT)) needs to be reported as “0” under tax amount heading in Table 6A and 6B.
5. Details of taxable supplies (Net of debit notes and credit notes) to unregistered persons other than the supplies
covered in table 5
In the above table, you need to capture the details of debit note, credit note and refund voucher
(return of advance received) issued against the supplies already reported in:
In the above table, you need to capture the consolidated rate-wise details of debit note/credit note
issued against the intra-State supplies made to unregistered person and inter-State supplies having
invoice value less than Rs. 2.5 Lakhs made to unregistered person in previous return period. This is
an amendment to the details declared in Table 7 of earlier return. In Table 10A and 10B, you need to
capture the rate-wise details of intra-State supplies and inter-State supplies respectively. Out of the
value captured in table 10A and 10B, you need to separately capture the details of supplies made
through e-commerce operator in 10A (1) for intra-State and 10B (1) for inter-State supplies.
9. Details of Advances Received/Advance adjusted in the current tax period or Amendment to GSTR-1 furnished in
earlier tax period
In the above table, that is, Table 12, summary of supplies effected against a particular HSN code
List of UQC