How to use Tally features for accounting

Tally Software

How to use Tally features for accounting

TallyPrime has multiple features that can help you streamline your business operations and track your accounting information. In this blog post, we’ve listed how you can use TallyPrime features.

The features in TallyPrime include inventory management, reports, receivables and payables management, bank reconciliation, GST, and e-Payments. The accounting features in TallyPrime include sales invoice creation, funds flow statement, company creation, cost centre creation, group creation, ledger creation, and sales voucher creation.

How to use TallyPrime features

Here is how you can use different features of TallyPrime:

Inventory features

Stock Item Creation

Go to the Gateway of Tally. Go to Create, and then type or select the Stock Item and press Enter. Specify name/alias for the stock items. Select your stock group. You can select any Primary or existing stock group. You can then select Alt+C to create a master on the fly. Next, select an appropriate unit of measurement. E.g., single unit, compound unit, and an alternate unit.

Viewing Reports

To view a report in TallyPrime, press Alt+G.

Bill receivables and payables

Viewing Bill Receivables Summary: Click on the Gateway of Tally, then click on Display More Reports, then click on Analysis & Verification. Next, click on Data Analysis, click on Pending Documents, and finally click on Net Pending Receivables.

Viewing Bill Payables Summary: Click on the Gateway of Tally, then click on Display More Reports, then click on Analysis & Verification. Next, click on Data Analysis, click on Pending Documents, and finally click on Net Pending Payables.

Bank Reconciliation

Viewing The Bank Reconciliation Report: Go to the Gateway of Tally, press Banking, go to Bank Reconciliation, and then press Enter. Next, select the bank, and then the Bank Reconciliation screen will appear.

GST

GST activation process

Regular/Registered Dealers

Open the company for which you need to activate GST. Press F11 (Features) and then set Enable Goods and Services Tax to Yes. If this option is not visible, set Show more features to Yes and set Show all features to yes. You can view the state as selected in the Company Creation screen. Select Registration type as Regular.

Composite Dealers

Open the company for which you need to activate GST. Press F11 (Features) and then set Enable Goods and Services Tax to Yes. Go to set/alter GST details and select Yes. Select Registration type as Composition. The tax rate for taxable turnover will appear as 1%. Next, select the Basis of tax calculation. In Enable tax rate for purchase, select Yes.

e-Payments

To enable e-Payments for your bank ledger in TallyPrime, go to the appropriate bank ledger. Next, set Enable e-Payments to Yes. Next, set the option of Set/Alter e-Payments configuration to Yes. Update the e-Payment configurations for your bank, and press Ctrl+A to accept the details and return to the Ledger Creation/Alteration screen.

The bulk upload/payments feature needs to be authorized by your bank before you can use this feature.

Sales Invoice Creation

Go to Gateway of Tally, then click on Vouchers and F8 Sales. Press the F2 key to enter the invoice date. Enter invoice number and select cash/recipient’s ledger in the Party A/c column. Enter the recipient’s GST details and select the applicable Sales Ledger. Select inventory items and mention their quantity and rates. If a sale is within the state, select Central and State Tax ledger. If it is interstate, select integrated tax ledger.

Funds Flow Statement

Viewing Funds Flow Statement

Go to Gateway of Tally, select Display More Reports, and click on Funds Flow. Press F2 to set the period, and the Funds Flow Statement will appear.

Company Creation

Press Alt+K on your keyboard and Create. Enter company details, state, and country.

Cost Centre Creation

Go to Gateway of Tally, Create, and then Cost Centres. Press Enter. Specify names. Put this under a Primary or existing cost centre. Accept the Cost Centre master and use Ctrl+A to save.

Group Creation

Press Alt+F3 (Select Company). Load required member companies. Open Group Company Creation screen. Press Alt+K (Company) and then Create. In the Company Creation screen, press Alt+R (Group Company). In the Group Company Creation screen, enter the name of the group company and details. In the Member companies field, select member companies from the List of Companies. Accept the screen. Press Ctrl+A to save.

Ledger Creation

Sales Ledger Creation

Go to Gateway of Tally, click on Create, type or select Ledger, and press Enter. Enter the name of the Sales Ledger from the List of Groups in the Under field. Select the option-Inventory values are affected? to yes. Select if GST is applicable. In “Is GST Applicable’’, enter Applicable. Choose whether you wish to enter Yes/No in ‘’Set/alter GST details.’’ Select Type of Supply. Press Ctrl+A to save.

Purchase Ledger Creation

Go to Gateway of Tally, click on Create, type or select Ledger, and press Enter. Enter the name of the Purchase Ledger from the List of Groups in the Under field. Select the option-Inventory values are affected? to yes. Select the Rounding Method as required. Set Excise Applicable to applicable. Enable the option of Set/Alter excise details to enter tariff details for the ledger. Select required Duty/Tax in the Include in Assessable Value Calculation for field. Select the required Method of Calculation and press Enter to save.

Sales Voucher Creation

Go to Gateway of Tally, Create, and Voucher Type. Enter the name of the voucher and select the type of voucher as sales. Enter abbreviation in the Abbreviation field. Select Method of voucher numbering from the Methods of Numbering list. Enable use effective dates for vouchers if you wish vouchers to become effective on a later date. Select Allow zero-valued transactions to yes if required. You can choose options like making a voucher type as ‘Optional’ by default, allowing narrations in vouchers, etc.

We hope that this blog helped you update your knowledge regarding Tally features for accounting. Knowing TallyPrime will help you increase the accuracy of accounting information of your business.

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