What is Tally ERP 9? Definition, Uses, Prospects, And More
Tally is an ERP accounting software suite used for capturing a company’s day-to-day business data. Tally ERP 9 software is a popular financial accounting and inventory management system. It is one of the greatest accounting software programs that can be combined with other company applications such as sales, finance, purchasing, payroll, inventory, and so on. Tally software keeps detailed records of all company transactions for each account. It uses a double-entry accounting method, which eliminates and corrects potential mistakes. The software is one of the most widely used accounting programs in India. It is full enterprise software for small and medium-sized businesses.
The program is a fantastic blend of function, control, and built-in customizability for a superb business management solution and GST software. Tally. ERP 9 enables business owners and their associates to interact more in account-related discussions. It is a complete product that retains its original simplicity while providing comprehensive business functionalities such as Accounting, Finance Management, Inventory Handling, Sales, Purchase & Selling, Sales, Manufacturing, Job Costing, Payrolls, and Branch Management, as well as compliance capabilities for Excise, GST, TDS, and TCS.
Tally is little more than computerized accounting. We keep accounts in manual books and record accounting entries as debit and credit. We make entries in Tally in the same way.
Features of Tally ERP 9 Software
Tally is a renowned and powerful Indian accounting software that is widely used in India. It is powered by a concurrent, multi-lingual, accelerated technological engine. Tally. ERP9 is much more than accounting software. The program is an excellent business management solution as well as GST software. In technical terms, “ERP” stands for Enterprise Resource Planning. However, for a layperson, the word suggests that the user can run their whole business with Tally entirely on their own, as it is extremely user-friendly software. Tally’s data is fully integrated, which saves a significant amount of time and work.
Many Features of Tally Software Are Mentioned Below:
- Tally.ERP9 accounting software is simple to set up and operate, and it is meant to ease the complicated day-to-day processes involved with a business. It enables simple keyboard operations and requires just a basic understanding of accounting and English to utilize.
- Tally.ERP9 offers a specific Auditors’ Edition that includes auditing and compliance features exclusively for Chartered Accountants.
- Tally.ERP9 gives its users the ability to access data from any location at any time.
- Tally.ERP9 is scalable and eliminates the requirement for a firm to adjust its operating style to adapt to the nature of the application.
- Accounting without Account Codes: Tally.ERP9 supports accounting using ordinary names instead of account codes.
- Real-time processing enables immediate posting and updating of books of accounts as soon as transactions are processed, allowing for instant statements and reporting. It also supports a real-time, multi-user environment.
- Tally has concurrent multilingual capabilities.
- ERP9 customers have the unique option to manage their accounts in any Indian language, see them in another language, and print them in still another Indian language.
- Tally.ERP9 provides flexibility to produce quick reports for any given period, whether a month, year, or at any point in time, as well as the ability to move between Accounting and Inventory reports of the same company or different firms.
- Tally. ERP9 enables the generation of rapid and accurate reports, allowing management to make timely and precise choices for the organization’s overall productivity and growth.
- The program serves as a conduit between the user and the Tally.
- ERP9 is deployed at several locations and allows the user to centrally configure and administrate Sites or Users associated with an account.
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Advantages of Tally ERP 9 Software
- Tally ERP 9 software supports a wide range of languages, which is why it is known as multi-lingual tally software.
- Accounts can be maintained in one language, while reports can be seen in another.
- You can create and administer up to 99,999 accounts.
- Using the payroll tool, you may automate staff record administration.
- Tally has a synchronization function that allows transactions kept in several locations and offices to be instantly updated.
- Construct consolidated financial statements in line with the demands of the firm.
- Managing single and many groups is an important aspect of the tally.
- Invoices may be created with a single item, several items, different tax kinds, and even multiple currencies.
- Multiple currency invoices with the value breakdowns of the transactions in terms of the different currencies can be printed.
- Tally accounting software works seamlessly with a variety of Microsoft apps.
- Tally offers a comprehensive solution based on accounting principles, inventories, and data integrity.
- Tally software has an easy-to-use interface, making it straightforward to utilize.
- Multiple people can share a single connection.
- ERP9 may easily be utilized in combination with the Internet to provide worldwide financial reporting.
- Within minutes of installation, users may begin logging transactions and producing invoices.
- ERP9 offers a one-stop shop for compliance.
- Tally ERP 9 software has a low total cost of ownership and is simple to deploy and configure.
- Supports many operating systems, including Windows and Linux, and may be installed on several machines.
- Tally software requires very little space for installation and is simple to set up.
- It has built-in backup and restores capabilities, allowing the user to effortlessly back up all company data in a single directory on a local system drive.
- It Supports all protocols, including HTTP, HTTPS, SMTP, ODBC, FTP, and others.
- It Supports a variety of languages, including nine Indian languages. Data may be entered in one language while invoices, POs, delivery notes, and other documents can be generated in another.
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Different Versions of Tally ERP 9 Software
- Tally 4.5, the initial version of Tally, was released in the 1990s. It is an MS-Dos-based program.
- Tally 5.4, the second version of Tally, was published in 1996. It had a graphical user interface.
- The next version of Tally was Tally 6.3, which was released in 2001. The version is window-based helps in printing and is VAT-compliant (Value Added Tax).
- Tally 7.2, which was released in 2005, was the next version of Tally. This version includes new features such as the Statutory complimentary version and VAT laws based on state.
- Tally 8.1 was the following version, and it included a new data structure. This version includes new POS (Point of Sale) and Payroll functions.
- In 2006, a new version of Tally 9 was launched due to faults and mistakes. It offers several functions such as Payroll, TDS, FBT, E-TDS filling, and so on.
- Tally. ERP 9 is the most recent version of Tally, published in 2009. This newest Tally ERP 9 software provides optimum features for small and large company enterprises. It has also been upgraded with new GST functionality (Goods & Services Tax).
Usage of Tally ERP 9 Software
As we have seen the definition of tally, its features, its benefits, and its different versions. Now to answer the most asked question ‘how to use it’.
Step 1: Installation
Tally software is available for purchase and download from the Tally website. If we are unsure if we want to utilize it, we may obtain a 30-day trial version. Tally 9 is exclusively available for Windows. Tally may also be used in Educational Mode, which allows you to learn how to use the program without purchasing a license. In this mode, several functionalities are disabled.
Step 2: Navigation
Tally. ERP 9 is intended to be navigated via the keyboard. While we may choose any option in Tally, everything has a keyboard shortcut. As we explain, the Shortcut is generally the key shown next to each viable choice. Learning how to navigate the keyboard will improve efficiency.
Step 3: Create Your Company
To begin using Tally, we must first create a firm in the application. Even though we are not utilizing tally professionally, we must still form a firm by completing the procedures below:
- Under the main menu, choose “Create Company.”
- Enter Company Information: Enter the business name exactly as it appears on bank records. Enter the business address, statutory compliance, phone number, and email address.
- Enable “Auto Backup” to store a backup of all your work in case something happens to the original.
- Select your currency
- If you are using Tally to merely handle your accounts, then pick “Accounts alone” in the Maintain menu and If you are using Tally for inventory management as well, select “Accounts with inventory”.
- Enter the start of your fiscal year and the book’s start date.
Step 4: Procedure
Now let’s look into the details of the software operations.
Creating Ledges: In Tally, ledgers capture all transactions for that account. For each account with whom one does business, a ledger must be created. The tally includes two ledgers by default: “Cash” and “Profit and Loss Account”. We can make as many more ledgers as we need. How to?
- Follow the steps below to open the Create Ledger window: Tally Gateway > Account Information > Ledger > Create
- Pick a group. We will be asked to choose which group the ledger will be allocated to. Choosing the proper group is critical since it will influence how figures and sales are totaled later.
- Label the ledger. Enter a name for your ledger to learn what it contains without having to access it.
- Enter an initial balance (if any). For example, if you’re making a ledger for your bank account, this is the amount that’s currently in it. If you are beginning a ledger for the amount owing to a vendor, the initial balance would be the amount owed.
Creating Vouchers: Recognize the function of vouchers: it is a document that provides the specifics of a financial transaction. These are utilized for anything from sales to deposits in a firm. Tally. ERP 9 has some of the most common forms of vouchers pre-configured for use. How do you make different types of vouchers?
- To access the vouchers screen, perform these steps: Tally Gateway > Accounting Vouchers
- In this phase, we may select the type of voucher we wish to make.
- Fill in the empty spaces with appropriate information.
F4: Contra: Used to record money deposited or taken from a bank, or any payment moved between two accounts in the same firm.
F5 Payment: This voucher is for payments made by the company.
F6: Receipts: For documenting the company’s income (sales, rent, interest, etc.) as well as the earnings received from various creditors.
F7: Journal: Used to record all adjustments or due entries such as prepaid expenses, accumulated revenue, and so on. For documenting asset purchases, input tax reversal entries, and GST reverse charge inputs
F8: Revenue: This is used to record all of the company’s sales.
F9: Make a purchase: This is used to keep track of all inventories bought by the company for operations.
Depending on the sort of voucher we want to produce, the information required to complete it will differ. Typically, we will need to choose which ledger the voucher will be linked to, as well as input the date and names of any persons involved.
If you have entered all of the information and it appears to be correct, you must accept the screen by pressing Enter and then Enter again to accept and store the information.
Note: If we have activated the Tally Vault password, the following page will ask for the user’s name and password details. Tally ERP 9 software will form a firm and take you to the Tally Menu Gateway where you may build masters and input transactions when you provide these details.
Accounting Vouchers for Tally ERP 9 Software
Now let’s look in detail at Accounting Vouchers in Tally ERP 9 Software.
Sales Voucher in Tally
The Sales Voucher is a sort of accounting voucher that is most commonly utilized by TallyErp-9 users. It may be prepared in either invoice or voucher format, depending on the nature of your business. You may print and deliver a copy of the invoice to your customers when in Invoice mode. The Voucher mode can be utilized when you simply need to record transactions for statutory purposes and do not need to print and share the information with your client. Tally.ERP 9 allows you to address a variety of requirements.
Purchase Voucher in Tally
Depending on the nature of the company activities, the Purchase Voucher can also be recorded in either the Voucher or Invoice form. Tally categorizes it as accounting vouchers. ERP 9. What if you change your mind and wish to alter the mode while inputting buy transaction details? What if you’ve input all of the information and then decide to alter the mode at the last minute? Tally ERP 9 allows you to turn a voucher into an invoice or vice versa without having to re-enter the information. It automatically adapts to your preferences. Simply press the Toggle button. By activating options, you can add additional information. To do so, press F12.
Payment Voucher in Tally
Tally’s Payment Voucher, when building ERP 9, you can include any number of details. You may offer data such as the instrument number and even print the check when making a payment to a party. You can print the matching check as soon as you pass a Payment Voucher. Go to Banking and choose Cheque Printing to get the list of checks that must be printed. Tally. ERP 9 supports approximately 500 banks from India and around the world. After completing the payment, you may build a Payment Advice in Tally. ERP 9 and send it to your supplier, who will be updated with all of your payments.
Receipt Voucher in Tally
Tally. ERP 9 allows you to review any pending invoices for which payments have yet to be received when you create a Receipt Voucher. When a client makes a payment, you may record information such as the invoice number, whether the payment was made in cash, by check, or by NEFT/RTGS, and the instrument numbers. You may also send this information to your consumer via email. You will never lose track of the payments this way.
Journal Voucher in Tally
Businesses utilize the Journal Voucher for a variety of purposes depending on their industry. Some accountants use them for both purchases and sales. Tally supports both accounting and inventory Journal Vouchers. Inventory Journal Vouchers in ERP 9 can be used to change goods or to shift inventory from one go down to another.
Credit & Debit Note Voucher in Tally
The Credit Note Voucher is typically used for a sales refund. Tally. ERP 9 does not activate the Credit Note by default. For purchase refunds, a Debit Note is utilized. With Tally. ERP 9, a user may either transmit a Debit Note as a voucher or as an invoice, affecting the inventory values. By hitting F11 and setting the Features, you may enable the Debit Note Voucher. You can also offer information about the original invoice numbers.
Contra Voucher in Tally
Businesses typically utilize Contra Vouchers to withdraw cash from banks or deposit cash in banks.
Additional Points for Tally ERP 9 Software
- Tally is an ERP accounting software suite used to capture a company’s day-to-day business data. Tally ERP 9 is the most recent version.
- Tally ERP 9 Software is a popular financial accounting system in India. It is full enterprise software for small and medium-sized businesses. It is a GST program that offers an excellent balance of function, control, and built-in customizability.
- ERP 9 is the greatest accounting software available. This program is compatible with various business applications such as inventory, finance, sales, payroll, and purchasing.
- Tally software is used to keep detailed records of all company transactions for each account. Tally has simplified computations. Tally has become an integral feature of all enterprises.
- Small businesses feel that Tally software facilitates efficient business transactions, delivers accuracy, and saves time.
- Manual calculations take time, which is why all firms use Tally.
- The possibility of inaccuracy is greatly decreased because of Tally. Tally software may be learned at home or in certain institutes. It is self-explanatory and simple to grasp.
- Tally is both inexpensive and timesaving. It also assures business management precision. It allows for the digitization of invoices and signatures, keeping you up to speed with the newest technologies.
- The owner of a small shop may also manage his store, keep records of client invoices, and conduct financial transactions efficiently using Tally ERP 9 Training.
Tally for beginners is the most popular and effective bookkeeping technology that makes a bookkeeper’s job easier. Every person interested in working in the bookkeeping sector should practice Tally ERP 9 Software information utilizing Tally on Cloud. Tally ERP 9 Software on Cloud gives small and medium-sized enterprises a greater scope for managing their accounting, inventory, and other business solutions at a reasonable cost.
The tally application for Windows supports several dialects, hence the software is known as multi-lingual tally software. It allows multitasking apps like Windows and others that may be implemented in many frames. It is compatible with various Tally ERP 9 apps. The advantages of utilizing Tally ERP 9 on the Cloud include improved performance, infection prevention, pay-per-customer, downtime, information, and cloud security, and access to information anywhere you go.
Frequently Asked Questions
Q1. Why there is no closing stock in Trial Balance?
The balance of unsold items left from purchases made during an accounting period is referred to as closing stock. The whole purchase value is already reflected in the Trial Balance. If closing stock is included in the Trial Balance, the effect is multiplied by two. As a result, it will not be reflected in the Trial Balance.
Q2. Why does the created Budget not appear in Trail Balance?
The Budget Variance report is accessible via the Trial Balance, Group Summary, and Monthly Summary. Budget Variance is enabled if the Accounting Features option Maintain budgets and controls is selected and at least one budget is generated.
Q3. How do I divide an expense into cost centers?
Enabling the option allows you to allocate one expense to various cost centers. In transactions, use pre-defined cost center allocations.