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TALLY TUTORIAL

Tally Administration

In this module, you will learn how to configure Tally.  We will specifically leave out installation and network related issues, which are not within the scope of this course.

Voucher Classes

Voucher class is a novel way of automating accounting allocations during invoice entry.  It is a table for predefining the entries to make invoice entry a simple task.  This is particularly useful in sales invoicing where the nominal ledger account, to be credited for each item of sale, is defined once.  During voucher entry, the accounting credits for items sold are done automatically.  Additional accounting entries like, tax, freight, and other charges can be predefined to be carried out untouched during actual invoicing.

Voucher class permits:

• Automation of entries to predefined ledger accounts.
• Automatic rounding off to preset value limits.

The class table is split into three sections.

• Restriction of groups for which Class can be used.
• Default accounting allocation for each item in invoice.
• Additional accounting entries.

Restriction of groups for which Class can be used.

Under this section, the option to exclude/include groups is available.  This is done to work with selected groups pertaining to the Class, which makes the invoice entry simpler.

Default Accounting Allocations for each item in Invoice.

Under this section, there are five sub-sections.  The explanation is as follows-

Ledger Name

Select the ledger to be credited for each item sold, in the invoice.  More than one ledger can be affected for each item, e.g., for tax inclusive items, the ledgers to be credited will be sales and tax in a definite proportion.  This is where percentage comes in.

Percentage

This is useful in tax inclusive price cases, you can specify the sales ledger account as, say 82.5%, and in the next line, the tax account with the balance 17.5%. Normally, for tax exclusive prices, you will give 100% for the sales account.  The percentage symbol is required to be mentioned.

Rounding Method

This may be used only where the sales account is not 100%.  Calculated amounts may be required to be rounded-off upwards or downwards or normal. Normal is rounding to the number of decimal places specified for the currency base on the less than 5 and greater than 5 rule.  You can set your own rounding-off rule, e.g., round­off to the next whole number.  In such a case, you will give upwards.

Rounding Limit

For the previous example, you will set it to 1, to achieve the amount to the next whole number.  To round-off upwards to the nearest 50P, you will set it to 0.50.

Override using Item Default?

This is a question to be answered Yes or No. Item default here, refers to the sales ledger account that you may have to set for the stock item, e.g., for 'Computers' ­Sale of Finished Goods.  If in the class table here, you mention sales-Local, and set No to this question, then sale-Local will be the account effected and not sale of finished goods.  Setting it to Yes will affect sale of finished goods.  The advantage of this is that you can use different classes to affect different sales accounts.

Additional Accounting Entries

This part is relevant for tax and other charges like freight etc.

Ledger name

This is self-explanatory.  You can give any number of ledgers.

Type of calculation

Different class methods are provided and select the one suitable.  The value basis that you will provide in the next column will calculate using the type of calculation specified.

Value Basis

Give the amount, which is to be used for the Type of Calculation.  For percentage, you must use the symbol %. Hence, Tax on Sales is 17.5% on Item Rate to use the rate given in the stock item.  The method Total Amount rounding will round the total invoice and put the difference in the ledger name mentioned here.  Hence the account Rounding Off will contain the sum that essentially rounds off the invoice to the desired level.

Rounding method and Rounding Limit have explained already.

Remove if Zero?

This is a question to be answered Yes or No, essentially to permit Tally to ignore the account and not make any entry in it if it's value is Zero.  If yes, ensure that you are permitted to make Zero valued entries in F11: Features.  No will record the invoice in the ledger account with Nil amounts.  Under normal circumstances, you may wish to set this value to Yes.

Effect on Cost Centres

If a voucher class is used, manual allocation of the entry to cost centres is not possible.  A cost centre class can be used in such cases.

Cost Centre Classes

Cost centre Class can be created in F11: Company Features itself.  Go through 'Set/Modify other Company Features' and activate 'Use Predefined Cost Centre allocations during Entry'.  This enables you to pre-define the proportion in which the voucher amount is to be allocated to different cost centres.  The allocation is then done automatically and in the background.

Other Company Features Screen

Create a Cost Centre Class

1. Create a Cost Centre Class, viz, CostClass.
2. Cost Category - Projects & Assignments.
3. Cost Centre - Projects 100%

Create a Voucher Class and an Enter an invoice

1. From the Gateway of Tally select Accounts info, Voucher Type and press Enter on create
2. Under the name type Class 1. The voucher type is Sales.
3. Type Local under the "Name of the Class" and press Enter.  It takes you to the class allocation screen of the Class Local.
4. Under exclude these groups select End of List from the Pop-up list and select Sundry Debtors under include these groups.
5. Select system sales from the List of Ledger Accounts, type 100% under percentage.
6. Under additional accounting entries select the ledger freight charges from the pop-up menu.  Under type of calculation select 'On Total Sales'.
7. Give 5% for value basis and not applicable for rounding method.  Enter Yes under 'Remove if Zero'.  And 17.5% is allocated to Sales Tax ledger account your screen should be look like given below.
8. Accept the screen.  Accept the Voucher Type and return to Gateway of Tally.

Invoice Entry in a Class situation

1. Select voucher entry and click on F8: Sales.
2. From the pop-up menu, select Class 1 and subsequently select Local from the class table.
3. Select the Cost Centre Class as CostClass.
4. Date of the voucher - 2-3-99
5. You can notice that the Ledger account Freight Charges is already displayed.
6. Type Ref No. as CL123 and select First Independent Computers from the pop­up menu. You will notice that pop-up list shows only  Sundry Debtors which was included while creating the voucher class.
7. Press Ctrl+Enter to alter the ledger details of First Independent Computers.  
8. Confirm that the Price Level is set to 'Wholesale' and accept the screen.  
9. Retain Wholesale for the Price Level in the voucher.  
10. Accept the forthcoming screen.  From the list of items Select PCGames2OOO.  Tracking number not applicable, Warehouse, Qty 3 pcs, Price 250.  Accept the item allocation screen.  
11. The freight charges and sales tax are calculated automatically on total sales (as was specified in the Class) and displayed.
12. The systems sales ledger account is automatically credited in the voucher.  
13. Accept the screen