sessions: 2017-18 · lesson 6: goods and service tax (gst) 34 6.1 what is gst? how does it work? 34...

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Sessions: 2017-18

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Sessions: 2017-18

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Sessions: 2017-18

Contents

Lesson 1: Vouchers Entry in Tally.ERP 9 4

1.1 Accounting Vouchers 4-7

1.2 Ledger Creation 8

1.3 Tally Transactions Voucher Entry 9-11

1.4 Inventory Vouchers 11-12

1.5 Invoicing 12

Lesson 2: Advanced Accounting in Tally.ERP 9 13

2.1 Bill-wise Details 13

2.2 Cost Centers and Cost Categories 13-14

2.3 Voucher Class 15

2.4 Interest Calculations 16

Lesson 3: Advanced Inventory in Tally.ERP 9 17

3.1 Order Processing 17

3.2 Batch-wise Details 18

3.3 Additional Cost Details 18

Lesson 4: Value Added Tax (VAT) in Tally.ERP 9 19

4.1 Introduction of VAT 19

4.2 Calculation of VAT (Example) 19

4.3 Vat Implementation on Tally.ERP 9 20-25

Lesson 5: Tax Deduction at Source (TDS) 26

8.1 Introduction of TDS 26

8.2 Understanding TDS by flow chart 26

8.3 Enabling TDS in Tally.ERP 9 27

8.4 Creating Ledgers. 28-31

8.5 TDS Reports 31

8.6 TDS Rates Table 32-33

Lesson 6: Goods and Service Tax (GST) 34

6.1 What is GST? How does it work? 34

6.2 Benefits of GST 34-35

6.3 Existing Indirect Tax Structure in India 35

6.4 Understanding CGST, SGST, IGST & UTGST 36-37

6.5 Enabling GST in Tally.ERP 9 38-39

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6.6 Enabling GST in F11: Features 39

6.7 Creating Purchase and Sales Ledger 40-41

6.8 Creating a Tax Ledger 41

6.9 Creating an Expense Ledger 42

6.10 Creating a Party Ledger 42

6.11 Creating a Stock Item 43

6.12 Creating a Purchase Voucher 44

6.13 Creating an Exempt Purchase Voucher 44-45

6.14 Creating a Sales Voucher 46-47

6.15 GST Reports 47-50

Lesson 9: Payroll Accounting 51

9.1 Introduction of Payroll Accounting 51

9.2 Five easy steps to generate payroll 52

9.3 Enabling Payroll 53

9.4 Payroll Information 54

9.4.1 Create Employee groups 54

9.4.2 Create Employee list. 54

9.4.3 Create Units 55

9.4.4 Create Attendance/Production 55

9.5 Pay Heads 56-59

9.6 Create Payroll Vouchers 60-61

Lesson 10: Technological Advantages of Tally.ERP 9 62

10.1 Security Control 62

10.1.1 Activate Security Control 62

10.2 Backup and Restore 63

10.2.1 Backup 63

10.2.2 Restore 63

10.3 Export and Import of Data 64

10.3.1 Export Masters 64

10.3.2 Import Masters 65

10.3.3 Export to Excel 65

10.4 Web Enabled 66

10.4.1 E-mailing Customer’s Outstanding Statement 66

Lesson 11: Shortcut Keys 67

11.1 Function Key 67

11.2 Special Function Key Combination 68

11.3 Key Combination Used for Navigation 68-70

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Sessions: 2017-18

Lesson 1: Voucher Entry in Tally.ERP 9

In accounting terms, a voucher is a document containing the details of a financial transaction. For

example, a purchases 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:

Real Accounts Personal Accounts Nominal Accounts

Debit What comes in The Receiver Expenses and Losses

Credit What goes out The Giver Incomes and Gains

1.1 Accounting Vouchers

Tally.ERP 9 is pre-programmed with a variety of accounting vouchers, each designed to perform a

different job. The standard Accounting Vouchers are:

1. Contra Voucher(F4)

2. Payment Voucher (F5)

3. Receipt Voucher (F6)

4. Journal Voucher (F7)

5. Sales Voucher / Invoice (F8)

6. Credit Note Voucher (CTRL + F8)

7. Purchase Voucher (F9)

8. Debit Note Voucher (CTRL+F9)

9. Reversing Journals (F10)

10. Memo Voucher (CTRL + F10)

1. Contra Voucher (F4)

We can use Contra Voucher for withdrawing money from the bank for pottery cash.

For Example:

Contra Voucher

Description Records funds transfer between cash and bank accounts

Voucher Entry

Account Amount Amount

State Bank of India (Bank Accounts) Credit

Petty Cash (Cash-in-hand) Debit

Use a Contra Voucher to record the entry in Tally.ERP 9

Go to Gateway of Tall Accounting Voucher F4: Contra.

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2. Payment Voucher (F5)

We can use Payment Voucher to settles a creditor’s bill by cheque.

For Example:

Payment Voucher

Description Records all bank and cash payments.

Voucher Entry


Ram Traders (Sundry Creditors) Debit

State Bank of India (Bank Account) Credit


Go to Gateway of Tall Accounting Voucher F5: Payment.

3. Receipt Voucher (F6)

We can use Receipt Voucher to receive a bank advice that the interest has been credited to its deposit

account.

For Example:

Receipt Voucher

Description Records all receipts into bank or cash accounts.

Voucher Entry


Ram Traders (Sundry Creditors) Credit

State Bank of India (Bank Account) Debit


Go to Gateway of Tall Accounting Voucher F6: Receipt.

4. Journal Voucher (F7)

The company has entered some expenditure on advertising as general office costs, rather than recording

the transaction in the separate ledger for advertising.

For Example:

Journal Voucher

Description Records adjustments between ledger accounts.

Voucher Entry


Advertising (Indirect Expenses) Debit

Office Costs (Indirect Expenses) Credit

Use the Journal Voucher toe adjust the two accounts.

Go to the Gateway of Tally Accounting Vouchers F7: Journal.

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5. Sales Voucher (F8)

We can use Sales Voucher to Sales all items and services on credit.

For Example:

Sales Voucher

Description Records all sales

Voucher Entry


Buyer’s Ledger account ABC Co. Ltd. (Sundry Debtors) Debit

Sales Accounts (Local Sales) Credit

Use a Sales Voucher for making this entry.

Go to the Gateway of Tally Accounting Vouchers F8: Sales.

6. Credit Note Voucher (CTRL + F8)

This voucher type is make available when the option Use Debit/Credit Note to is set to YES in the F11:

Features (F11: Accounting Features).

A customer returns stock that was incorrectly supplied.

For Example:

Credit Note Voucher

Description Records credit note entry for sales returns or Customer over-charging.

Voucher Entry


Buyer’s Ledger account Makemytrip.com (Sundry Debtors)

Credit

Sales Accounts (Local Sales) Debit

Use a Credit note to record this entry.

Go to the Gateway of Tally Accounting Vouchers F8: Credit Note.

7. Purchase Voucher (F9)

A company buys all purchase entry on credit.

Purchase Voucher

Description Records all purchases.

Voucher Entry


Supplier’s ledger account Ram Traders (Sundry Creditor) Credit

Purchase Accounts (Local Purchases) Debit

Use a Purchase Voucher to record this entry.

Go to the Gateway of Tally Accounting Vouchers F9: Purchase.

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8. Debit Note Voucher (CTRL+F9)

This voucher type is made available when the option Use Debit/Credit Notes is set to YES in the F11:


A company returns damaged goods to a supplier.

For Example:

Debit Note Voucher

Description Records debit note entry for purchase returns or over-charging by a supplier

Voucher Entry


Supplier’s is ledger account Kaltronic Pvt. Ltd. (Sundry Creditor)

Debit

Purchase Accounts (Local Purchases) Credit

Go to the Gateway of Tally Accounting Vouchers F9: Debit Note.

9. Reversing Journal Voucher (F10)

Reversing Journals are special journals that are automatically reversed after the date of the journal.

They exist only for a day and are effective on the date of the reversing journal. This voucher type is

available only if the feature Use Reversing Journals & Optional Vouchers is set to YES in the F11:


For Example:

Reversing Journal Voucher

Description Records the voucher entries in a Reversing Journal Register. Without affecting the ledger accounts and financial statements.

Voucher Entry


Ledger account Debit

Ledger account Credit

Go to the Gateway of Tally Accounting Vouchers F10: Reversing Journal.

10. Memo Voucher (CTRL + F10)

Memo Voucher is a non-accounting voucher and the entries made using it will not affect your accounts.

In other words, Tally.ERP 9 does not post these entries to ledgers but stories them in a separate Memo

Register. You can alter and convert a Memo voucher into a regular voucher when you decide to bring

the entry into your books.

For Example:

Memo Voucher

Description Records the voucher entries in a memo register, without affecting the ledger accounts and financial statements.

Voucher Entry


Ledger account Debit

Ledger account Credit

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1.2 Ledger Creation in Tally.ERP 9

There is a practice exercise to Ledger creation in Tally.ERP 9. We can use these ledgers in Tally.ERP 9 to

work process like as:

Sl. No. Ledger Name Nature of Ledger Group Head

1. Capital A/c. Liabilities Capital Account

2. Ram Traders A/c. Current Liabilities Sundry Creditor

3. Kaltronic Pvt. Ltd. Current Liabilities Sundry Creditor

4. Mohan & Sons Current Liabilities Sundry Creditor

5. Apex India Pvt. Ltd. Current Liabilities Sundry Creditor

6. Local Purchase A/c. Expenses Purchase Account

7. Purchase Return A/c. Expenses Purchase Account

8. Building A/c. Assets Fixed Assets

9. Wages A/c. Expenses Direct Expenses

10. Local Sales A/c. Income Sales Accounts

11. Sales Return A/c. Income Sales Accounts

12. Drawing A/c. Liabilities Capital Account

13. Furniture A/c. Assets Fixed Assets

14. Ashok & Sons A/c. Liabilities Loan (Liabilities)

15. Rent A/c. Expenses Indirect Expenses

16. SBI Bank A/c. Current Assets Bank Account

17. PNB Bank A/c. Current Assets Bank Account

18. Ravi & Sons A/c. Current Assets Sundry Debtors

19. ABC Co. Ltd. Current Assets Sundry Debtors

20. Mywebservice.com Current Assets Sundry Debtors

21. MakemyTrip.com Current Assets Sundry Debtors

22. Commission a/c. Expenses Indirect Expenses

23. Suresh Current Assets Loans & Advance A/c.

24. Interest A/c. Income Indirect Income

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1.3 Tally Transactions Voucher Entry

There is a practice exercise to Tally Transactions Voucher Entry in Tally.ERP 9. We can use these

Transactions to understand voucher entry in Tally.ERP 9 to work process like as:

Sl. No.

Entry Type Voucher Type Account Type Debit Credit

1. Investment by Company Owner to run company

Receipt Voucher (F6)

Capital A/c. 200000

Cash A/c. 200000

2. Good Purchased from Ram Traders in credit

Purchase Voucher (F9)

Purchases A/c. 10000

Ram Traders A/c. 10000

3. Purchased Good in Cash. Purchase Voucher (F9)

Purchase A/c. 5000

Cash A/c. 5000

4. Purchased Good in Cash. Purchase Voucher (F9)

Purchase A/c. 7000

Cash A/c. 7000

5. Factory building rent in cash. Payment Vouchers (F5)

Building A/c. 100000

Cash A/c. 100000

6. Wages payment in cash Payment Vouchers (F5)

Wages A/c. 200

Cash A/c. 200

7. Sales Goods in Cash. Sales Voucher (F8)

Cash A/c. 20000

Sales A/c. 20000

8. Draw the amount by Owner in cash

Payment Vouchers (F5)

Drawing A/c. 5000

Cash A/c. 5000

9. Sales Goods in Cash. Sales Voucher (F8)

Cash A/c. 7000

Sales A/c. 7000

10. Bought furniture for office in cash


Furniture A/c. 6000

Cash A/c. 6000

11. Paid Salary in cash Payment Vouchers (F5)

Salary A/c. 65000

Cash A/c. 65000

12. Received loan from Ashok & Sons in Cash.


Cash A/c. 50000

Ashok & Sons. 50000

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Sl. No.


13. Return loan to Ashok & Sons in Cash.


Ashok & Sons. 50000

Cash A/c. 50000

14. Paid Office Rent in Cash. Payment Vouchers (F5)

Rent A/c. 10000

Cash A/c. 10000

15. Opened an Account in Bank & Deposit Cash.

Contra Vouchers (F4)

Bank Ac/. 10000

Cash A/c. 10000

16. Withdraw cash from Bank Contra Vouchers (F4)

Cash A/c. 5000

Bank A/c. 5000

17. Purchases goods from Manoj Traders


Purchase A/c. 5000

Manoj Traders. 5000

18. Made payment to Manoj Traders by Cheque.


Manoj Traders. 5000

Bank A/c. 5000

19. Sold Goods to Ravi & Sons. Sales Voucher (F8)

Ravi & Sons 6000

Sales A/c. 6000

20. Received cheque from Ravi & Sons


Bank A/c. 6000

Ravi & Sons. 6000

21. Paid Commission Payment Vouchers (F5)

Commission A/c. 2000

Cash A/c. 2000

22. Gave Loan to Suresh in Interest


Suresh A/c. 5000

Cash A/c. 5000

23. Received Cheque of Interest from Suresh


Bank A/c. 500

Interest A/c. 500

24. Purchased goods from Ram Traders


Purchases A/c. 10000

Ram Traders 10000

24. Return goods to Ram Traders Debit Note Voucher (CTRL +

F9)

Ram Trader 2500

Purchased Return A/c.

2500

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Sl. No.


25. Discount for defected goods. Debit Note Voucher (CTRL +

F9)

Ram Traders 1000

Discount on Purchased Return

A/c.

1000

26. Sold Goods to Ravi & Sons. Sales Voucher (F8)

Ravi & Sons 10000

Sales A/c. 10000

27. Return goods to Ravi & Sons. Credit Note Voucher (CTRL +

F8)

Ravi & Sons. 2500

Sales Return A/c. 2500

28. Discount for defected goods. Credit Note Voucher (CTRL +

F8)

Ravi & Sons. 1500

Sales Return A/c. 1500

1.4 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)

Sales Order (Alt+F5)

Rejections out (Alt+F6)

Rejection in (Ctrl+F6)

Stock Journal (Alt+F7)

Delivery Note (Alt+F8)

Receipt Note (Alt+F9)

Physical Stock (Alt+F10)

1.4.1 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.

1.4.2 Sales Order: A Sales order entry has to be made to record this. The Sales order number can be

used as a reference.

For Example: A customer places an order with the company for purchasing some goods.

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1.4.3 Rejection 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.

1.4.4 Rejections In: A Rejection in entry is passed to record the rejected goods. The rejections in entry

are a pure inventory voucher.

For Example: A customer has rejected goods that were sold earlier.

1.4.5 Stock Journal: To record the consumption of goods there is no need for entries on both sides of

the voucher. Such entries can be entered in a stock journal voucher.

For Example: The Company transfers items of stock from the warehouse to the shop.

1.4.6 Delivery Note: Good that are being delivered to a customer are recorded in a Delivery Note

voucher.

1.4.7 Receipt Note: Goods that are received from the supplier are recorded in a Receipt Note (Goods

Receipt Note – GRN) voucher.

1.4.8 Physical Stock Voucher: Tally.ERP 9 considers the stock available based on the entry made in a

physical stock voucher.

For Example: On conducting a stock-check, the company finds a discrepancy between the actual stock

and the recorded stock figure.

1.5 Invoicing

Tally.ERP 9 has an in-built system to create and print sales invoices. You will now record sales and

purchase invoice details, adjust accounting and inventory balances.

To enable the option of invoicing, set YES to Allow Invoicing, Enter Purchases in Invoice Format and

Separate Discount Column in invoices in F11: Features (Accounting Features/ Inventory Features).

Ensure that the Inventory values are affected? Is set to YES in Purchases Ledger.

Ensure that the Inventory values are affected? Is set to YES in Parts Sales, Software Sales and

Computer Sales.

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Sessions: 2017-18

Lesson 2: Advanced Accounting in Tally.ERP 9

2.1 Bill-wise Details

The details of all the sales and purchase transactions made with the debtors and creditors have to be

maintained at the invoice level. In order to maintain these details Tally.ERP 9 provides a feature called as

Bill-wise details for bill-wise accounting. In this section you will learn to:

Maintain details of bills.

Specify credit periods.

Obtain receivable and payable reports.

Relate every entry with the relevant transaction.

2.1.1 Activating Bill-wise Details

Go to Gateway of Tally select National Traders and shut Indus Enterprises

Press F11: Features (Accounting Features)

Type YES for Maintain Bill-wise Details.

Retain No for Non – Trading A/c also.

Accept the settings by pressing Ctrl+A

2.2 Cost Centres and Cost Categories

2.2.1 Cost Centres: A cost centre is a unit of an organization to which transactions can be allocated. Cost

Centres are units to which costs or expenses are allocated and Profit Centres are units to which incomes

are allocated. Tally.ERP 9 cost centres allow a dimensional analysis of financial information Tally.ERP 9

gives you the cost centre break-up of each transaction as well as details of transactions for each cost

centre.

2.2.2 Cost Categories: Cost Categories have been introduced specially for project oriented organisations

as they require allocation of resources to parallel sets of cost centres. For example, the project is to

construct an airport. The airport is the cost centre. For this project certain expenses are incurred by the

project head. A simultaneous allocation of the amount has to be made for both the project and the

project head. This requirement can be achieved using Tally.ERP 9 Cost Category feature. Any number of

parallel allocations can be done as per requirements.

2.2.3 Activating Cost Category and Cost Centre: Ensure that you are at the Gateway of Tally of National

Traders. To activate the cost centre and cost category.

Set YES to the following in the F11: Features (Accounting Features)

Maintain Cost Centres

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More than ONE Cost Category

2.2.4 Creating Cost Categories: Go to Gateway of Tally Accounts Info. Cost Categories

Create.

Name: Projects & Assignments

Allocate Revenue Items: YES

Allocate Non-Revenue Items: No

Press Y or Enter to accept the screen.

Similarly create Salesmen as a Cost Category.

2.2.5 Creating Cost Centre: Go to Gateway of Tally Accounts inf. Cost Centres Create.

Category: Select Projects & Assignments.

Name: Projects.

Under Primary.

Similarly create the following Cost Centres

Buildings, Roads and Airports, by selecting Projects and Assignments as Cost Category and

Projects for Under.

Amar and Barry, by selecting Salesmen as Cost Category and Primary for Under.

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2.3 Voucher Class

Voucher class is a novel way of automating accounting allocations during transactions. This is

particularly useful in sales invoice where the nominal ledger account, to be creadited 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 carred out

during actual invoicing.

Voucher class permits:

Automation of entries to predefined ledger accounts.

Automatic rounding off to preset value limits.

2.3.1 Create a voucher class for Sales Voucher Type: Go to Gateway of Tally Accounts Info.

Voucher Types Alter.

1. Select Sales Voucher

2. Press Enter till you reach the Name of Class field.

3. Type the name as Sales Class.

4. Press Enter after typing Sales Class and the class screen appears.

5. The Voucher class table of Sales voucher type comprises of three sections.

o Restriction of groups for which class can be used.

o Default accounting allocation for each item in invoice.

o Additional accounting entries.

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Sessions: 2017-18

2.4 Interest Calculations

Interest is a legitimate return on money invested and chargeable in the business world on loans and also

on delayed payments. Interest can be calculated on the basis of simple interest or compound interest. In

Tally.ERP 9 you can calculate interest in two ways:

Simple Mode

Advanced Mode

2.4.1 Calculating Interest in Simple Mode: Interest can be calculated on outstanding balances for any

ledger account by specifying the interest rate and style of calculation in ledger master. The interest will

be calculated automatically during voucher entry.

Go to Gateway of Tally Accounts info. Ledgers Alter (Single mode) Bank Account

Set Activate interest Calculation? To YES and press Enter.

Now you have to set the Interest Parameters, on the basis of which interest will be calculated

for the ledger account. The screen appears as shown below:

Rate – This is the rate at which the interest has to be calculated. Specify a rate of 15%.

Interest Style – Select 365-day Year and accept the screen.

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Sessions: 2017-18

Lesson 3: Advanced Inventory in Tally.ERP 9

3.1 Order Processing

Order Processing refers to placing orders with suppliers for purchasing from them or receiving orders

from customers for the purpose of selling.

In Tally.ERP 9 Order Processing is linked to Inventories. Using Order processing you can:

Track the order position of a stock item.

Know whether the goods ordered have arrived or not.

Go to Gateway of Tally of in the F11: Features (Inventory Features). Activate the following features:

Allow Purchase Order Processing.

Allow Sales Order Processing.

Use Tracking Number (Delivery / Receipt Notes)

3.2 Batch-wise Details

Batch details are used to identify the movement of inventory in batches or lots. Although this is a

requirement primarily of the pharmaceutical industry, the same can be used by other industries that

maintain or manufacture perishable goods. Many organisations also purchase in batches in order to

monitor the result of the batch purchased individually. Hence, Tally.ERP 9 has used the term Batch / Lot.

In this section the following topics are discussed:

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Sessions: 2017-18

Activate Batch-wise Details and enter vouchers using them.

Set Manufacturing Date & Expiry Date for Batches.

3.2.1 Activating Batch-wise Details: Batch-wise details are given for maintaining batch information

pertaining to stock items. The Manufacturing date and expiry date can also be set for batch wise details.

To activate Batch-wise Details

Go to Gateway of Tally press F11: Features (Inventory Features).

Set Maintain Batch-wise details and set Expiry Dates for Batches to YES.

3.3 Additional Cost Details

The cost of an item is the rate at which the item is purchased. However, there are other expenses like

Packing charges, Freight charges, Cartage incurred, etc. which add to the cost of purchasing the item.

Thus, the additional cost details are required to be added to the actual cost of purchase.

Let us now see how Tally.ERP 9 handles this requirement.

3.3.1 Activating Additional Cost Details

Ensure that you are at the Gateway of Tally Press F11: Features (Inventory Features). Set Track

Additional Costs of Purchases to YES.

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Sessions: 2017-18

Lesson 4: Value Added Tax (VAT) in Tally.ERP 9

4.1 Introduction of VAT

VAT is an Indirect Tax on Goods, introduced in lieu of Sales Tax, to ensure transparency and compliance.

The basic premise of VAT is to Tax the “True Value” added to the goods, at each stage of the transaction

chain. This ultimately reduces

Tax paid to the Government

Cost / Tax passed onto the consumer.

VAT is a multi-point tax as against Sales Tax, which is a single-point tax. Under Sales Tax regime “Value”

of goods to be taxed at each stage is computed as Basic cost + Profit Margin + Sales Tax earlier stage.

VAT does away with the cascading effect of Tax on Tax, by allowing a set off for input Tax that is, Tax

paid at earlier stage on purchases. It is an efficient, globally acceptable and easy administer taxation

system.

Terms Associated with VAT

Term Descriptions

Input TAX This is a tax paid on Purchases.

Out Tax This is a Tax charged on Sales.

Input Credit The Amount of Input TAX that is permitted to be set of against Output Tax.

Composite Dealer Dealers with annual gross turnover not exceeding a certain threshold (Threshold is decided by the respective State Governments) who can opt of a composition scheme whereby they will pay tax as a small percentage of their gross turnover. However, retailers opting for this composition scheme will not be entitled to input Credit. The State Government fix the periods and the procedures for the payments of the lump sum.

4.2 Calculation of VAT – (Example)

Example 1: The following Transaction has been done by the Swayam Education Pvt. Ltd. Bayar on this

transaction compute the VAT payable to the Government.

1. Purchase from Raj Infotech, 5 CDs of Antivirus Software @Rs.800 each, VAT rate 4%.

2. Purchase from Microtek India Ltd., 10 Monitors @Rs.4000 each, however discount allowed

@5%, Excise tax @16%, i.e. Rs. 6080 and Educational Cess @2%.

3. Sale of 2 Antivirus CDs @ Rs. 1200 to Rajib Roy.

4. Sale of 2 Monitors @ Rs. 4500, VAT @ 4% to H. Goenka.

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Solutions:

For Purchase Amount

For Transaction 1: VAT payable to party on assessable value of Rs. 4,000 @4% Input VAT

160.00

For Transaction 2: VAT payable to Party on the assessable Value of Rs. 44680 @ 4% Input VAT

1,787.20

Total of Input VAT (A) 1,947.20

For SALES

For Transaction 3: VAT payable to the Govt. on assessable value of Rs. 2,400 @4% Output VAT

96.00

For Transaction 4: VAT Payable on Govt. on assessable value of Rs. 9,000 @ 4%

360.00

Total Output VAT (B) 456.00

Therefore VAT Payable / Receivable (A-B) (1,491.20)

4.3 VAT Implementation on Tally ERP 9

Let us take the above example and see how it works on Tally. The procedure for implementation of VAT

rate in Tally is very simple. Follow the steps given below:

Step-1:

Enabling VAT:

Go to Gateway of Tally > Accounts info.> F11: Features > Statutory & Taxation.

Set Enable Value Added Tax (VAT) and set/Alter VAT Details to YES.

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On enabling SET/Alter VAT Details to Yes. Tally will prompt with VAT Details Screen.

VAT Details

Select the state name.

Set Type of Dealer? To Regular

Enter the Regular VAT Applicable from date

Accept the screen to save. Step-2:

Create the Tax rate from ledger creation such as “Input VAT 4% and “Output VAT 4%” under “Duties &

Taxes”. Create the ledger Input VAT 4% from..

Gateway of Tally> Master > Accounts info. > Single Ledger > Create

At the time creation following things have to be specified in the respective ledgers such as:

(a) Type of Duty = VAT

(b) VAT / Tax Classes = Input VAT 4%

(c) Percentage of calculation and method of calculation will be posted automatics save the serene.

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Step-3:

Create the other Tax Ledger Output VAT 4% from…

Gateway of Tally > Master > Accounts info > Single Ledger > Create

At the time of creation following things have to be specified in the respective ledgers such as:

(a) Type of Duty = VAT

(b) VAT / Tax Classes = Output VAT 4%

(c) Percentage of calculation and method of calculation will be posted automatically save the

serene.

Step-4:

Create the Purchase an Sales Ledger such as “Purchase @ 4% and “Sales @ 4%” from…

Gateway of Tally > Master > Accounts info.> Single Ledger > Create

Following things to be specified at the time of “Purchase @4%” Ledger creation:

(A) Used in VAT Returns = “YES”

(b) VAT /Tax Classes = Purchase @ 4%

Following things to be specified at the time of “Sales @ 4%” Ledger creation:

(A) Used in VAT Returns = “YES”

(b) VAT / Tax Classes = Sales @ 4%

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Used in VAT Return

Set this to YES if you wish to select VAT/Tax class for this Ledger.

Note: Tally gives the flexibility to the user to either have the classification selected in the Ledger

Master tagged to all transactions Or select different classifications each time during voucher

entries.

The rest of the ledger creation process is the same as in default Tally.

In the above example we have selected a VAT classification of 4%.

Like in the Purchase Ledger screen, select the required VAT/Tax classification in the Sales

Ledger as well.

Go to Gateway of Tally > Accounts info. > Ledger > Create / Alter

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Step-5:

Create your respective Party Ledger (i.e. Sundry Creditors and Sundry Debtors ) From….

Gateway of Tally > Master > Accounts info. > Single Ledger > Create

Under Sundry Creditor Group create the following Ledgers:

(a) Raj Infotech

(b) Microtech India

Under Sundry Debtor Group create the following Ledgers:

(a) H. Goenka

(b) Rajib Roy

Step-6:

Enter the Transactions for Purchase in the Invoice Mode, configure the Voucher Entry Screen by press

F12 and set option “Use Common Ledger a/c for item allocation” as “YES”.

Go to Gateway of Tally? Accounting Voucher > Purchase (F9)

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Step-8:

Enter your Sales Trisection from…..

Gateway of Tally > Accounting Vouchers > Sales (F8) (Invoice Mode)

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Lesson 7: Tax Deducted at Source (TDS) in Tally9

7.1 Introduction of TDS

Tax Deducted at Source (TDS) is one of the modes of collecting income tax. The buyer (deductor)

deducts the tax from the payment made to the seller (deductee) and remits the tax to the Income Tax

Department within the stipulated time.

The buyers (Corporate and Non-Corporate) make payments (such as Salary, Tent, Interest on securities,

Dividends, Insurance Commission, Professional Fees, Commission on Brokerage, Commission on Lottery

Tickets, etc.) to the sellers (Services) and deduct the requisite amount from such payments towards tax.

The buyer files the TDS returns containing details of the seller and the bank, where the TDS amount is

deposited to the Income Tax Department (ITD).

The Income Tax Department has pr4escribed the formats for filing these returns electronically, which

the buyer does in a CD/floppy.

For additional details you can visit the Income Tax Website at: http://www.incometaxindia.gov.in

7.2 Understanding TDS by Flow Charts

Seller

(Deductee)

Buyer

(Deductor)

Bank

(Treasury)

Income Tax Department

(ITD)

Bills/ Services

Buyer Deducts TDS

and deposit to the

Authorized Bank

(Treasury)

Form 16 A Files Quarterly Returns

electronically in Form 26

and Form 27 A

http://www.incometaxindia.gov.in/

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7.3 TDS Activations in Tally ERP 9

Examples:

Date: 1-4-2016

Received Invoice from Swayam Associates, Chartered Accountant, towards Internal Audit of

Accounts Rs. 25,000

Dated: 2-4-2016

Paid Rs. 22,167 to Swayam Associates towards his Invoice after deducting TDS Rs. 2,833 an

amount payable to him.

Dated: 2-4-2016

Paid Rs. 2,833 by cheque of Axis Bank towards TDS on Internal Audit to the Authorized Bank

Treasury.

Solutions in Tally ERP 9

Step 1:

In F11: Features (F3: Statutory)

Enable Tax Deducted at Source (TDS) to YES.

Set / Alter TDS Details to YES

Enter the following details in the TDS Dedcutor Details Screen as per the following illustration.

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The fields in the screen are as follows:

Tax Assessment Number (TAN) is a 10-digit alphanumeric number issue by the income Tax

Department (ITD) to the Deductor.

Income Tax Circle / Ward (TDS) is issued by the Income Tax Department and represent the area

where the deductor is supposed to file TDS Returns.

Deductor Type: Government or Others.

Name and Designation of the authorized person who is responsible to file TDS Returns.

Step 2:

7.4 Create Ledger

Swayam Associates under Sundry Creditor. Ensure that the details are a shown in the following

figure:

Step 3:

Create Ledger: “Internal Audit Expenses” under Indirect Expenses

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Step 4:

Create Ledger: “TDS on Internal Audit” under Duties & Taxes. Ensure that the details are as shown in

the following figure:

Step 5:

Make an entry in the Journal Voucher

Note: In F12: Configuration set Allow Alternation of TDS Rates for Lower Deductor to YES.

Debit: Internal Audit Expenses : Rs. 25,000

Credit: Swayam Associates: Rs. 25,000

In the Bill Wise Details screen, enter the details as per the following illustration.

Press Y or

Enter to Accept

the voucher.

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Step 6:

Make an entry in a Journal Voucher.

Press ALT + S or click on the TDS Deductions button.

Note: This is to select only the Ledger where TDS is applicable

Debit: Swayam Associates

Credit: “TDS on Internal Audit”

Note: TDS Details for TDS on Internal Audit is updated with the details like Gross Amount, Income Tax,

Surcharges, Audit Surcharges, and reference.

1. Press YES or Enter to accept the voucher.

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Step 7:

Make an entry of the transaction in a Payment Voucher.

Debit: Swayam Associates: Rs. 22,167

Credit: Axis Bank: Rs. 22,167

Debit: TDS on Internal Audit: Rs. 2,833

Credit: Axis Bank: Rs. 2,833

Step 8:

7.5 TDS Report from

Gateway of Tally Display Statutory Report TDS Reports

You can view TDS Outstanding from:

Gateway of Tally Display Statements of Accounts TDS Outstanding

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7.6 TDS Rates for Annual Year 2015-16

Section Payment Limit TDS Rates for

Individuals

TDS Rates

for Others

194A Interest from a Banking Company 10000 10% 10%

194A Interest other than from a Banking

Co.

5000 10% 10%

194C Contractors (including Advertising &

Sub-Contractor)

30000 (per

payment) or

75000 p.a.

1% 2%

194C Transport Contractors

(Providing PANand enganged in the

business of plying, hiring or leasing of

goods carriages

Nil Nil Nil

194D Insurance Commission 20000 10% 10%

194H Commission or Brokerage 5000 10% 10%

http://www.lessmytax.com/income-tax/pan/

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194I Rend of Land & Building 180000 10% 10%

194I Rent of Plant & Machinery and Other

Equipments

180000 2% 2%

194IA Transfer of Immovable Property

other than Agriculture Land

5000000 1% 1%

194J Payment for Professional Services,

Technical Services & Royalty

30000 10% 10%

194J(1)(ba

)

Payment to Directors any

remuneration or fees or commission

by whatever named called if the

same is not covered u/s 192

- 10% 10%

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Lesson 6: Goods and Service Tax (GST) in Tally ERP 9

6.1 What is GST? How does it work? GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

6.2 Benefits of GST? The benefits of GST can be summarized as under:

6.2.1 For business and industry

Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.

Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.

Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.

Improved competitiveness: Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.

Gain to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.

6.2.2 For Central and State Governments Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.

Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the

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chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.

Higher revenue efficiency: GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.

6.2.3 For the consumer

Single and transparent tax proportionate to the value of goods and services: Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.

Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.

6.3 Existing Indirect Tax Structure in India

Central Tax State Tax

Central Excise duty State VAT / Sales Tax

Additional duties of excise Central Sales Tax

Excise duty levied under Medicinal & Toiletries Preparation Act

Purchase Tax

Additional duties of customs (CVD & SAD)

Entertainment Tax (other than local bodies those levied by local bodies)

Service Tax Luxury Tax

Surcharges & Cesses Entry Tax (All forms)

Taxes on lottery, betting & gambling

Surcharges & Cesses

GST

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6.4 Understanding CGST, SGST, IGST & UTGST CGST: is a part of Goods and Service Tax (GST). CGST means Central Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. CGST falls under Central Goods and Service Tax Act 2016.

SGST: is a part of Goods and Service Tax (GST).SGST means State Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. SGST falls under State Goods and Service Tax Act 2016.

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IGST: is a part of Goods and Service Tax (GST). IGST means Integrated Goods and Service Tax, one of the

three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one

nation.

UTGST and SGST is part of Goods and Service Tax in India. UTGST expands as Union Territory Goods and Service Tax. ... SGST is levied on Goods and Service tax meant for states in India other than union territories whereas UTGST is for Union Territories of India.

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6.5 Enabling GST in Tally.ERP 9

Creating a Company

To create a company,

Go to Gateway of Tally > Alt + F3 > Create Company

1. Enter the basic information, i.e., Name, Mailing Name and Address of the company, for e.g.,

National Traders and other relevant details.

2. Select Singapore from the List of Countries in the Statutory compliance for field.

3. Specify the E-mail details.

4. The Currency Symbol for Indonesia will be displayed as S$ by default.

5. In the Maintain field, select Accounts Only or Accounts with Inventory as per the company

requirements.

6. In the Financial Year from and Books beginning from fields, the first day of the current financial

year for e.g., 1-4-2008 will be displayed by default, which can be changed as per requirement.

7. Set the option Disallow opening in Educational mode to either Yes or No as per requirement.

8. Enter the TallyVault Password if required.

9. Set Use Security Control field to Yes if required.

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10. Press Y or Enter to accept and save.

6.6 Enabling GST in F11: Features

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

1. Set Prepare & Follow Singapore Style GST Returns to Yes

2. Enter the GST Registration Number and the Company Registration Number

3. Accept the Company Operations Alteration screen

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6.7 Creating Purchase and Sales Ledger

6.7.1 Purchase Ledger

To create ledgers under the Purchase Accounts group

Go to Gateway of Tally > Accounts Info > Ledgers > Create

1. Enter the Name for the Purchase ledger

2. In the Under field select Purchase Accounts from the List of Groups

3. Set Inventory values are affected to Yes if you maintain inventory

4. Set the field GST Applicable to Yes under Statutory Information

5. Accept the screen to Save.

Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.

6.7.2 Sales Ledger

To create ledgers under the Sales Accounts group


1. Enter the Name for the Purchase ledger

2. In the Under field select Sales Accounts from the List of Groups

3. Set Inventory values are affected to Yes if you maintain inventory

4. Set the field GST Applicable to Yes under Statutory Information

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5. Accept the screen to Save.

6.8 Creating a Tax Ledger


1. In the Ledger Creation screen enter the name of the GST ledger in the Name field

2. In the Under field, select Duties & Taxes from List of Groups

3. Set Inventory Values are affected to No

4. Set the Percentage of Calculation to 10%

5. Select the Method of Calculation from the Type of Duty menu

6. Select GST Deductible – Input Tax from the GST Type menu in the GST Account Type field.

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7. Accept the screen to save.


Similarly create a ledger for GST Output, by selecting GST Account Type as GST Payable –

Output Tax.

6.9 Creating an Expense Ledger

To create ledgers under the Expenses Accounts group


1. Enter the Name of the expense ledger

2. In the Under field select Indirect Expenses from the List of Groups

3. Set Inventory values are affected to Yes if applicable

4. Set GST Applicable to Yes under Statutory Information

5. Accept the screen to save.


You can, similarly create ledgers for Fixed Assets, Liabilities and Income Accounts under the

respective groups.

6.10 Creating a Party Ledger


1. In the Ledger Creation screen enter the name of the GST ledger in the Name field

2. In the Under field, select Sundry Creditors from the List of Groups

3. Set Maintain balances bill-by-bill to Yes

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4. The option, Inventory values are affected is set to No by default. Set this to Yes if applicable

5. Enter the Mailing Details and Tax Information

6. Accept the screen to save


Customer ledgers can be created in a similar manner.

6.11 Creating a Stock Item


1. Enter the Name of the stock item

2. In the Under field select Primary from the List of Groups

3. Select the Units 4. Enter the Rate of GST 5. Press Y or Enter to accept and save.

6.12 Creating a Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

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1. Enter the reference in the Ref field, if required

2. Select the Party’s A/c Name from the List of Ledger Accounts

3. Select the required Purchase Ledger

4. Select the required GST Type from the List of GST Type

Note: In an Invoice mode, the option Combined appears only if Use Common Ledger A/c for Item

Allocation in F12: Configure is set to No.

5. Select the Name of the Stock Item from the List of Items

6. Enter the appropriate Quantity and Rate and the amount is displayed in the Amount field

7. Select the GST Input ledger from the List of Ledger Accounts

When the payment is made, the GST Type should be set to Not Applicable, as the Purchase Voucher is

booked to include the GST Input.

The Payment entry should be passed as follows.

6.13 Creating an Exempt Purchase Voucher

A GST Exempt Purchase Voucher can be created by selecting the GST type as Exempt.

To create an Exempt Purchase Voucher,

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Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

1. Enter the Reference for the voucher in the Ref field

2. Select the Party’s A/c Name from the List of Ledger Accounts

3. Select the Purchase ledger

4. Select the GST Type (Exempt) from the List of GST Type

5. Select the Name of the Stock Item from the List of Items

6. Enter the appropriate Quantity and Rate and the amount displayed in the Amount field.

7. Enter Narration, if any

8. Accept the voucher to save

Note: If you select a GST Ledger in the above entry, Tally.ERP 9 displays the error message GST Account

Not Allowed.

6.14 Creating a Sales Voucher

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. Enter the reference in the Ref field, if required

2. Select the Party’s A/c Name from the List of Ledgers

3. Select the Sales ledger

4. Select the GST Type from the List of GST Types

5. Select the required stock item from the List of Stock Items

6. Select the Output GST ledger from the List of Ledgers

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7. Enter the Narration if required


On receipt of payment, a payment entry has to be passed without allocating the Tax ledger and GST

Type.

Creating a Sales Voucher Using Combined GST Type

Tally provides you with a new GST Type called Combined, which allows you to allocate Stock Items to

different GST Types in one single entry.

Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select Voucher mode

1. Enter the reference number in the Ref field.

2. Select Combined as the GST Type from the list

Note: In an Invoice mode, the option Combined appears only if Use Common Ledger A/c for Item

Allocation in F12: Configure is set to No.

3. Debit the Party ledger from the List of Ledgers

4. Enter the value in the Amount field

5. Credit the Sales ledger

6. Select the Name of the Item from the List of Stock Items in the Inventory Allocation screen

7. Enter the Quantity and Rate. The Amount will be displayed automatically

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viii. Select the GST Type (Example: Standard Rate) from the List of GST Types.

9. Credit the Sales ledger from the List of Ledger Accounts to allocate the remaining value

10. Select the Stock Item. Enter the Quantity and Rate in the Item Allocation screen

11. Select the GST Type (e.g. Exempt) from the list

12. Credit the GST Output ledger to allocate the tax amount

13. Select the required details in the Bill-wise Details sub-screen

14. Enter the Narration if any


Purchase vouchers using different GST Types can be created in a

similar manner.

6.15 GST Reports

To view the GST Reports,

Go to Gateway of Tally > Display > Statutory Reports

GST Reports consists of

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●

GST Analysis

●

GST Return – F5

GST Analysis

The GST Analysis report gives details on the Total of all Purchase and Sales transactions, passed using

different GST Types.

Supplies/Incomes (Output Tax)

This section displays the total sales amount on each GST Type.

Combined

The total sales amount calculated on different GST Types using a Combined class displays in this column.

Standard Rated

The total sales amount on all the transactions passed using the Standard Rated GST Type, is calculated

and displayed is this column.

Zero Rated

The total sales amount on all the transactions, passed using the Zero Rated GST Type, is calculated and

displayed is this column.

Exempt

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The total sales amount on all the transactions, passed using the Exempt GST Type, is calculated and


Out-of-Scope

The total sales amount on all the transactions passed using the Out-of-Scope GST Type is calculated and


Purchases/Expenses (Input Tax)

This section displays the total purchase amount on each of the GST Types mentioned above.

Import Under MES

The total purchase amount on all the transactions, passed using Imports under MES GST Type is

calculated and displayed is this column.

Gross Amount

This column displays the total sales/purchase amount in each of the GST Types.

GST Amount

This column displays the total GST amount on each of the GST Types.

GST%

This column displays the Percentage of GST.

The GST Analysis report also calculates and displays the Net GST to be claimed from IRAS.

Use Alt + F1 to view a the detailed GST Analysis report.

GST Return F5

GST Return F5 is a statutory report which has to be filed every quarter.

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Box 1 displays the total value of Standard Rated sales.

Box 2 displays the total value of Zero Rated sales.

Box 3 displays the total value of Exempt sales.

Box 4 displays the sum of Box 1, 2 and 3.

Box 5 displays the total value of Taxable Purchases.

Box 6 displays the Output Tax due on the sales.

Box 7 displays the Input Tax and the Refund Claimed

Box 8 displays the Net GST to be paid to IRAS (if Output Tax is greater than Input Tax) or to be claimed

from IRAS (if Input Tax is greater than Output Tax).

Box 9 displays the total value of the goods imported under the scheme.

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Lesson 9: Payroll Accounting in Tally ERP 9

9.1 Introductions of Payroll Accounting

Tally Payroll is integrated with Accounting to give the user the benefits of simplified Payroll processing

and accounting.

Tally Payroll also supports configurable formats for Payslip Printing, Flexible Salary/Wage, Attendance,

Leave and Overtime Registers, Gratuity and Expat reports.

Features of Tally Payroll

In keeping with Tally’s tradition of simplicity, strength and flexibility, Tally Payroll offers the following

features to meet the diversified requirements of small to large business enterprises.

It allows seamless integration with Tally Accounts. Tehere are no disconnects between Payroll

and Accounts.

It offers Employee Groups Unlimited Classification and sub-classification of employees.

It offers Pay Structures ease of conformity, faster entry and flexibility of non-dependence.

It offers Pay Components user-definable earnings, deductions and others.

It offers a unique Auto-Manual payroll processing facility.

It is independent of processing period restrictions.

If offer Employee Groups, Pay structures and Pay components.

It offers a unique Auto-Manual payroll processing facility.

It allows Arrears Calculation.

It computes salary based on Attendance, Time, Unit of Production or any other criteria.

Tally Payroll helps in tracking of Loans and Advances.

It provides calculation of Gratuity.

It allows you to drill down from any summary report to detailed levels, and till the originating

transaction, for a particular Pay component value.

It provides configurable report formats.

You can also process Payroll using the Multilingual feature in Tally.

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9.2 Five Easy Steps to Generate a Payroll

Step 1: Create Employee Masters: Create an Employee master, Enter the requisite Employee Details &

Employee group by grouping employees under the function they perform; their department or

designation.

Step 2: Create Payroll Masters: Create the Payroll Units, Create the Attendance / Production Type to

record the Attendance and Production details.

Step 3: The components of structured salary are created under Pay Head: Create the salary structure

components in pay head. The Pay head creation in Tally ERP 9 is very user friendly. Tally ERP 9 allows

creating any complex type of pay head.

Step 4: Create Salary Details: Create the applicable Salary Details for both Employee Groups as well as

Individual Employees with earnings deductions and basis of computation.

Step 5: Process Payroll and Generate Payslip: Pass a Payroll voucher to enter all Earnings and

Deductions in payroll transactions that are paid along with the Salary Payslip for all employees.

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Generate the Payslip that provides employee as well as attendance details, itemizes each component of

the employee’s earnings and deductions, and displays the net amount paid to him for a given pay

period. It also provides information to the employee as to how the net amount was arrived at.

9.3 Enabling Payroll in Tally ERP 9

To enable Payroll in Tally

Go to Gateway of Tally F11: Features Accounting Features

9.4 Payroll Information

Go to Gateway of Tally Payroll Information

9.4.1 Create Employee Groups like As:

Category Department Under

Primary Cost Category Marketing Dept. Primary

Primary Cost Category Sales Dept. Primary

Primary Cost Category Admin Dept. Primary

Primary Cost Category Production Dept. Primary

See groups after Creations:

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9.4.2 Create Employee List as per Employee Groups / Departments:

Sl. No. Name Under Date of Joining General. Info Bank Details

1 Amit Gupta Marketing Dept. 1st May. 2015 Yes Yes

2 Rahul Singh Marketing Dept. 1st July. 2014 Yes Yes

3 Mohan Kumar Marketing Dept. 1st Jan. 2013 Yes Yes

4 Raj kumar Marketing Dept. 1st Mar. 2015 Yes Yes

5 Rohit Singh Sales Dept. 1stApr. 2013 Yes Yes

6 Mohit Kumar Sales Dept. 1st Sep. 2013 Yes Yes

7 Jyoti Singh Sales Dept. 1st June. 2014 Yes Yes

8 Rani Sharma Sales Dept. 1st Oct. 2015 Yes Yes

9 Ajay Singh Sales Dept. 1st Jan. 2016 Yes Yes

10 Sunil Gusain Sales Dept. 1st Feb. 2015 Yes Yes

11 Monika Singh Admin. Dept. 1st Mar. 2014 Yes Yes

12 Abid khan Admin. Dept. 1st May. 2015 Yes Yes

Employee List Creation in Tally ERP 9

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9.4.3 Create Unit (Work) as per :

Day : for whole 8 hours

Hours : for Overtime

Unit (Work) Creation in Tally ERP 9

9.4.4 Create Attendance / Production Types as per:

Present : for whole 8 hours (Day Present)

Overtime : for Overtime attendance (Hours basis)

Attendance / Production Type Creation in Tally ERP 9

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9.5 Pay Heads

The salary components constituting Pay Structures are called Pay Heads. A Pay Head may be an earning,

which is paid to an employee, or a deduction, which is recovered from his/her salary. The value of these

Pay Heads could be either fixed or variable, for each Payroll period.

You have to create All Pay Head under an Accounting Group such as Direct Expenses, Indirect Expenses,

Current Liabilities, Duties & Taxes, Provision, or Loans and Advance (Asset).

Pay Head Type

A Pay Head is categorized as Allowances, Deductions or Reimbursements

In Tally Payroll, Pay Head types are provided in a natural language for ease of use, as follows:

Create Pay Heads like as

Name Pay Head Type

Under Affect Salary Payslip Gratuity Calculation

Basic Pay Earning for Employee

Indirect Expenses

Yes Basic Pay No On Attn.

HRA Earning for Employee

Indirect Expenses


TA Earning for Employee

Indirect Expenses


DA Earning for Employee

Indirect Expenses


Overtime Earning for Employee

Indirect Expenses


EPF@12% Employee Statutory Deduction

Current Liabilities

Yes EPF@12% NA As Computed Value

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Pay Heads Creation in Tally ERP 9

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EPF @ 12% Creation in Tally ERP 9

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Create Salary Details in Tally ERP 9

Edit Payroll Configurations in Tally ERP 9

Go to Gateway of Tally F12 Payroll Configuration

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9.6 Create Payroll Vouchers in Tally.ERP 9

Go to Gateway of Tally Transaction Payroll Vouchers

Now Select F5 Attendance like as:

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Now Click F4 Payroll and Select Bank account in which bank you want to pay salary.

Select Primary Cost Category Click on Payroll Auto Fill Set the pay period.

Now you can see the all Payroll Details like as:

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Lesson 10: Technological Advantages of Tally.ERP 9

10.1 Security Control

Security Control is required in an environment where many people work on accounts using the same

computer at different times or the same set of accounts on a network.

Tally.ERP 9 has a variety of management reports that are flexible in nature allowing you to create, alter,

display and print any information. The Security Control system of Tally.ERP 9 is use to set the authority

rights of the user or user groups.

10.1.1 Activate Security Control

Go to Gateway of Tally of National Traders press Alter+F3 Select Alter press Enter and reselect

Your Company to view the Company Alteration screen.

Set YES to use Security Control.

An additional field appears asking for the name of the administrator, type Admin.

In the Password field type Admin and repeat the password.

An option Use Tally Audit Features appears set this to YES

Tally.ERP 9 loads the company and displays the Gateway of Tally on entering the correct user name and

password. Now that we have activated the Security Control for Company Name, let use create the

Security Levels.

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10.2 Backup and Restore

10.2.1 Backup

Tally.ERP 9 has a flexible backup mechanism where in you can virtually take a backup of the data from

one storage medium to another. The more commonly used mechanisms are floppy drive, hard disk

drive, zip drive, tape drive etc. Installed either locally or on a network. In the backup screen, the source

and destination of the backup is entered. Tally.ERP 9 will do as required.

From the Company Info screen, select the Backup option and the screen appears as shown

below:

Specify the source (where Tally.ERP 9 has to take the data from).

Specify the destination (where you want Tally.ERP 9 to store the date backup).

Tally.ERP 9 then displays the list of companies created – select one.

10.2.2 Restore

Restore literally means ‘to bring back’. Tally.ERP 9 allows the restoration of data from one medium to

another. In Tally.ERP 9 context, restore means we have a Tally.ERP 9 backup and we want to work on

the data backup instead of the current data. This can be done from the Company info screen by

selecting the Restore field.

The Select Companies to Restore screen appears as shown below:

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10.3 Export and Import of Data

We will now learn about Tally.ERP 9 export and import capabilities, which enables Tally.ERP 9 to interact

gloably. Statements and data from Tally.ERP 9 can be exported to other programs like spreadsheets and

databases. Only data from Tally.ERP 9 can be imported and not data from other system. Importing from

other systems involves the usage of Tally.ERP 9 Definition Language TDL and this is outside the scope of

this training.

10.3.1 Exporting Masters

Go to Gateway of Tally.ERP 9 Display List of Accounts click on Export.

Tally.ERP 9 first asks for the export format. The different fornats are, ASCII, EXCEL, HTML and XML. This

filename extension will take the default format.

For example, since we have selected XML, the filename displayed will be Master.xlsx

Type of Masters – Any of the mentioned master types can be exported. Select All Masters and accept it

to Export.

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10.3.2 Importing Masters

Return to the Gateway of Tally.

Shut your current company and load new company for import (Ensure that it has the same

financial year as the current company Company)

Select Import of Data Masters

Type in the file name. The name and path of the source file should match. In this case the

current directory is in use, hence you do not need to give the path.

The opening balance can be modified from the exported source file. Carefully select, Modify

with new data.

10.3.3 Export to Excel

Tally.ERP 9 now comes with the functionality, wherein all reports can be exported to Microsoft Excel

spreadsheet. This feature enables you to export any report generated by Tally.ERP 9 into Excel.

To export the Trial Balance.

Go to Gateway of Tally Display Trial Balance

Click on Export.

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10.4 Web Enabled

Email and internet publishing are the Web enabled features available in Tally.ERP 9. This facility of

Tally.ERP 9 reduces the paper work. Reports, Reminder letters, Statement of Accounts, Invoices and

purchase Orders can be e-mailed directly from Tally.ERP 9. Thus the user does not have to send printed

invoice or purchase orders. This feature helps you to save on postage and valuable time.

10.4.1 E-mailing Customer’s Outstanding Statement

Select a customer’s Outstandings Statement from the following path:\

Go to Gateway of Tally Display Statements of Accounts Outstanding Ledger click the E-

mail button.

The Mailing Ledger Outstanding Screen appears as shown below:

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Lesson 11: Shortcut key in Tally.ERP 9

11.1 Function Key

Function Key

Sl. No Key Functionality Availability

1. F2 To change the menu period. At almost all screens in Tally.ERP 9.

2. F4 To select the contravoucher At accounting voucher creationand alteration screens.

To view the list of groups. At the trial balance, cash/banksum- mary, group summary andgroup vouchers screens.

To view the list of ledgers. At the ledger vouchers screen.

To change voucher type. At the sales, purchase and journal register and day book screens.

To switch between bills receivable and payable report.

At the bill receivable and payable report screens.

To view other stock item'ssum- mary. At the item monthly screen.

To show/ hide gross profit earned on sales made.

At the item monthly screen.

3. F5 To select the payment voucher.

At accounting voucher creation and alteration screens.

To switch between grouped and ledger wise display.

At the trial balance, cash/bank summary and group summary screens.

To reconcile bank accounts.

At the ledger vouchers screen, where the ledger is the bank ledger.

4. F6 To select the receipt voucher.


To view the age wise analysis of bills payables

At the bill receivable and payable report screens.

5. F7 To select the journal voucher. At accounting creation and alteration screens.

To view the monthly summary. At the ledger vouchers screen.

To switch between groupsummary and group vouchers.

At the group summary andgroup voucher screens.

6. F8 To select a sales voucher. At accounting voucher creationand alteration screens.

7. F9 To select a purchase voucher. At accounting voucher creation and alteration screens.

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8. F10 Navigate between accounting reports.

At the reports screens, trialbalance, account books and day book screens.

9. F11 To select the features screen. At almost all screens in Tally.ERP 9.

10. F12 To select the configure screen. At almost all screens in Tally.ERP 9.

11.2 Special Function Key Combination

Special Function Key Combination

Sl. No Key Functionality Availability

1. Alt + F11

To close a company. At all the menu screens.

To view detailed report. At almost all report screens.

To explode a line into its details. At almost all screens in Tally.ERP 9.

2. Alt+

F2

To change the system period. At almost all screens in Tally.ERP 9.

3. Alt + F3

To select the company info menu.

At Gateway of Tally.ERP 9 screen.

To create/ alter/ shut a company.

4. Alt + F5

To view sales and purchase register summary on a quarterly basis.

At the sales and purchaseregister screens.

5. Alt + F12

To view the filters screen where the range ofinformation can be specified.

At all the report screens.

6. Alt + C To create a ledger at a voucher screen. At accounting voucher andaltera- tion screens, at a field where you have to select aledger from a list. If thenecessary account has not been created earlier, use this key combination to create the ledger without quitting from the accounting voucher screen.

To add a new column toreports. At all the reports, trial balance, cash/bank book(s), groupsummary and journal register screens.

7. Alt + N To add multiple columns to a report (Auto column).

At all the reports, trial balance, cash/bank book(s), group summary and journal register screens.

8. Alt + P To print reports. At all reports screens in Tally.ERP 9.

9. Alt + Z To zoom. At all the print preview screens.

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10. Ctrl + F8

To select a Credit note. At accounting voucher creationand alteration screens.

11. Ctrl+ F9

To select a Debit note. At accounting voucher creation and alteration screens.

12. Ctrl + Q

To quit a screen - whereveryou use this key combination,it quits that screen without making any changes to it. Italso does not ask for confirmation from user before quitting.

At almost all screens in Tally.ERP 9.

13. Ctrl + L To mark a voucher as optional or regular.


14. Alt + R Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

At creation/alteration of voucher screen

15. Ctrl + R Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

At creation/alteration of voucher screen

16. Alt + D To delete a voucher or To delete a master or To delete a column in any columnar report

At Voucher and Master (Single) alteration screens.

17. Alt + X To cancel a voucher in Day Book/List of Vouchers.

At all voucher screens in Tally.ERP 9

18. Alt - 2 To Duplicate a voucher. At List of Vouchers – creates a voucher similar to the one where you positioned the cursor and used this key combination

19. Alt - A To Add a voucher or To Alter the column in columnar report.

At List of Vouchers – adds a voucher after the one where you positioned the cursor and used this key combination.

20. Alt + 1 To insert a voucher or To toggle between Item and Accounting invoice.

At List of Vouchers – inserts a voucher before the one where you positioned the cursor and used this key combination.

21. Alt + R To remove a line in a report. At almost all screens in Tally.ERP 9.

22. Alt + U To retrieve the last line whichis removed using Alt + R.

At all reports screens in Tally.ERP 9

23. Ctrl + U To retrieve all lines which are removed using Alt + R.

At all reports screens in Tally.ERP 9

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11.3 Key Combination Used For Navigation

Key Combination Used For Navigation

Sl. No Key Functionality Availabilty

1. Enter To accept anything youtype into a field.

You have to use this key at most areas in Tally.ERP 9.

To accept a voucher or master.

To get a report with furtherdetails of an item in a report.

2. Esc To remove what you type into a field.

At almost all screens in Tally.ERP 9.

To exit a screen.

To indicate that you do not want to accept a voucher or ledger.

3. Shift + Enter To view next level details and condense the next level details.

At the balance sheet, profit and loss account, trial balance,cash/ bank book(s), group summary, group vouchers, voucher register, day book and list of accounts screens.

4. Space Select the current line. At all reports screens inTally.ERP 9

5. Ctrl +Space Select all lines. At all reports screens in Tally.ERP 9

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DOT-NET GUIDE LINE FOR STUDENTS

DOT-NET always tries to give better education for our student, not only in the field of computer but we

also develop our students how to fight competition in the professional life. We also provide them jobs after

complete the course.

TEACHING METHODOLOGY: - DOT-NET provides 7 Hrs. Class within 6 days in a week like as:

5 Day Practical (1 Hrs. a day)

1 Day Theory (2 Hrs.)

o 30 Min. Subjective of Computers

o 30 Min. Quarry Sessions

o 30 Min. Personality Development

o 30 Min. Presentations

STUDY MATERIAL: - DOT-NET provides study material as NOTES with every module as per DOT-NET

Course Layouts. The every student has to buy this with start of new modules. This notes books will

necessary to buy every student.

MONTHLY TEST: - DOT-NET management are very serious about our student’s performance so we take

monthly test like as:

Practical Test : 40 Marks

Theory Test : 40 Marks

Oral Test : 20 Marks

After complete of course we will provide Mark sheet with your Certificate.

Students will have to attend at least 5 monthly tests compulsory if the course is for 6th months or

11 monthly tests compulsory if the course is 1 year.

ANNUAL AWARDS FUNCTION: - DOT-NET provides our students “Best Students of the Year Award”

in Annual Function of the Centre.

Annual Awards Prize

Best Student of The Year Award

Rs. 500/- Cash

Certificate and DOT-NET Momentous

DOT-NET will place the photographs Annual winners in DOT-NET website (www.dnce.in)

PLACEMENT: - DOT-NET provides the 100% job placement to our students but students have ability to

fight the interview, if students are not able to face interview then we will make a batch for such students

and give them 10 days job interview training, then place them to companies.

ANNUAL TOUR: - DOT-NET arranges annual tour outside of Delhi every year for our students.

FEE DEPOSIT: - DOT-NET collects the fee on time so every student has to pay monthly fee on your due

date. After three days of due date the Late Charge Rs.10.00 per day till next 7 days after 7 days we will

stop his/her class.

http://www.dnce.in/

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sessions: 2017-18 · lesson 6: goods and service tax (gst) 34 6.1 what is gst? how does it work? 34...

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