Accounting Fundamental Full Information

I’ll provide a comprehensive response to the first ten inquiries, incorporating the best aspects of previous explanations and addressing potential shortcomings:

1. Accounting Fundamentals

Accounting is the systematic process of recording, analyzing, interpreting, and communicating financial information about a business. It provides insights into a company’s financial health, performance, and solvency. Key concepts include:

• The Accounting Equation: This fundamental equation forms the basis of double-entry bookkeeping and ensures balanced accounts: Assets = Liabilities + Equity.
• Debits and Credits: These are recording mechanisms in double-entry bookkeeping. Debits increase asset and expense accounts and decrease liability and equity accounts. Credits do the opposite.
• Generally Accepted Accounting Principles (GAAP): A set of accounting standards that companies must follow when preparing financial statements to ensure consistency and reliability. GAAP covers topics like revenue recognition, expense recognition, and financial statement presentation.

Resources for Learning More:

• Corporate Finance Institute:
• Investopedia:
• Khan Academy (free courses):

2. Enterprise Resource Planning (ERP)

ERP stands for Enterprise Resource Planning. It’s a comprehensive software application that integrates key business processes, such as:

• Accounting
• Inventory Management
• Human Resources
• Customer Relationship Management (CRM)
• Supply Chain Management
• Project Management

By streamlining data flow and communication between departments, ERPs enhance efficiency, productivity, and decision-making capabilities.

Popular ERP Systems:

• SAP
• Oracle NetSuite
• Microsoft Dynamics 365

Resources for Learning More:

• Investopedia:
• TechTarget SearchERP:

3. How to Start Tally.ERP 9

To launch Tally.ERP 9, follow these steps:

1. Locate the Tally.ERP 9 icon on your desktop or in the Start menu.
2. Double-click the icon. Tally.ERP 9 will launch.
3. Select the company you want to work with (if you have multiple companies) or create a new company (explained in question #4).

4. How to Create a Company

1. In Tally.ERP 9, press Alt + F1 (or go to Gateway > Create Company).
2. Enter the company name and other relevant details.
3. Select the accounting year (April-March is common in India).
4. Choose the base currency (usually Indian Rupee – INR).
5. Set up features like inventory management and cost centers if needed.
6. Click Create to finalize company creation.

Detailed instructions and additional configuration options can be found in the Tally.ERP 9 documentation.

5. How to Alter a Company

1. Open the company you want to modify.
2. Go to Gateway > Alter Company.
3. Make the desired changes to company details, accounting year, features, or configurations.
4. Click Save to confirm the modifications.

Tally.ERP 9 allows adjustments to various company settings as your business needs evolve.

6. Pre-defined Groups in Tally.ERP 9

Tally.ERP 9 provides pre-defined account groups to categorize your financial transactions. These groups streamline account creation and reporting.

Common Pre-defined Groups:

• Cash & Cash Equivalents
• Banks
• Current Assets (e.g., Accounts Receivable, Inventory)
• Current Liabilities (e.g., Accounts Payable)
• Long-Term Assets (e.g., Land, Buildings, Equipment)
• Long-Term Liabilities (e.g., Loans)
• Capital (Owner’s investment)
• Income (Revenue earned)
• Expenses (Costs incurred)

Using pre-defined groups ensures consistency and aligns with standard accounting practices.

7. Enabling GST in Tally.ERP 9

The Goods and Services Tax (GST) is an indirect tax system in India. To enable GST in Tally.ERP 9:

1. Go to Gateway > Configuration > GST > Features.
2. Select the Enable GST checkbox.
3. Choose the state under which your business operates (if applicable).
4. Configure other GST settings as required.
5. **Click Save to activate GST

Tally.ERP 9 Journey: Ledgers, Inventory, and More

Here’s a comprehensive response to your next set of questions on Tally.ERP 9, incorporating valuable information and best practices:

11. Creating Ledger Accounts

Ledger accounts are the foundation of accounting in Tally.ERP 9. They represent various financial elements like cash, inventory, receivables, payables, income, and expenses.

Steps to Create a Ledger Account:

1. Go to Gateway > Accounts Info > Ledger.
2. Click Create.
3. Enter the account name (e.g., Accounts Receivable).
4. Select the appropriate group (e.g., Current Assets).
5. Choose the account type (e.g., Duty or Tax Account for GST).
6. Set opening balance (optional, if applicable).
7. Click Create to finalize account creation.

Tips:

• Use clear and descriptive account names.
• Maintain consistency in account types based on their nature.
• Consider using opening balances during initial setup or after year-end adjustments.

12. Altering Ledger Account Information

Modifying existing ledger accounts allows you to update details as needed.

Steps to Alter a Ledger Account:

1. Open the company you want to work with.
2. Go to Gateway > Accounts Info > Ledger.
3. Search for the account you want to modify.
4. Click Alter on the desired account.
5. Make the necessary changes (e.g., name, group, type).
6. Click Save to confirm the alterations.

13. Deleting Ledger Accounts

While deleting accounts is generally discouraged, it can be done in specific scenarios. However, proceed with caution, as deleted accounts cannot be easily recovered.

Steps to Delete a Ledger Account (Use with Caution):

1. Open the company you want to work with.
2. Go to Gateway > Accounts Info > Ledger.
3. Search for the account you want to delete.
4. Click Delete on the desired account.
5. Confirm the deletion by clicking Yes.

Important:

• Ensure the account has a zero balance before deletion.
• Deleting accounts can affect historical reports. It’s recommended to deactivate accounts instead (click Yes when prompted to “Deactivate” during deletion).

14. Creating Multiple Ledgers

Tally.ERP 9 allows you to create multiple ledgers within a company. This is useful for managing separate business entities or departments under one roof.

Steps to Create a New Ledger:

1. Go to Gateway > Accounts Info > Ledger.
2. Click Create.
3. Enter the new ledger name (e.g., Branch XYZ).
4. Select the Create as a Separate Ledger checkbox.
5. Complete account creation steps as usual.

15. Entering Party GST Details

For businesses registered under GST, capturing party (customer/supplier) GST details is crucial.

Steps to Enter Party GST Details:

1. Go to Gateway > Accounts Info > Create > Party.
2. Enter party details (name, address, etc.).
3. Click Accounts Info.
4. Select the Set/Alter GST Details checkbox.
5. Enter the party’s GST Registration Type (Regular, Composition, etc.).
6. Fill in the GSTIN (Goods and Services Tax Identification Number).
7. Click Create to save the party with GST details.

16. Balance Sheet

The balance sheet is a financial statement that presents a company’s financial position at a specific point in time. It shows assets, liabilities, and equity.

Generating a Balance Sheet in Tally.ERP 9:

1. Go to Gateway > Reports > Balance Sheet.
2. Set the date for which you want the balance sheet.
3. Select the ledger (if you have multiple ledgers).
4. Click Display to view the balance sheet.
5. You can also export the balance sheet to various formats (PDF, Excel).

17. Accounting with Tally using Inventory

Tally.ERP 9’s inventory management capabilities allow you to track stock levels, manage purchases and sales, and generate reports.

To leverage inventory in your accounting:

1. Enable inventory features during company creation or through Gateway > Set/Alter Features > Inventory.
2. **Create stock groups, categories, and units of measure (explained in questions 18

Continuing Your Tally.ERP 9 Journey: Inventory Management and Transactions

Here’s a comprehensive response to the next set of questions on Tally.ERP 9, focusing on inventory management and essential transactions:

21. Creating Godown (Warehouse) Full Information

Godowns (warehouses) represent physical locations where you store inventory items. Defining godowns helps you track stock movement and maintain accurate inventory records.

Steps to Create a Godown:

1. Go to Gateway > Inventory Info > Godowns.
2. Click Create. (Choose Single Godown for a single location or Multiple Godowns for multiple locations.)
3. Enter the godown name (e.g., Main Warehouse).
4. Select the Under field to specify a parent godown (optional for hierarchical structures).
5. Click Create to finalize godown creation.

22. Creating Stock Item Full Information

Stock items represent individual products or materials you buy, sell, or store. Defining stock items with accurate details is vital for inventory management.

Steps to Create a Stock Item:

1. Go to Gateway > Inventory Info > Create > Stock Item.
2. Enter the stock item name (e.g., T-Shirt).
3. Select the appropriate stock group and category (created earlier).
4. Specify the unit of measure (e.g., Pieces).
5. Set the opening balance (quantity and value, if applicable).
6. Define other details like reorder level, purchase and sales rates, etc.
7. Click Create to finalize stock item creation.

23. Defining Tax Rate at Item Level

For businesses registered under GST, you can define the applicable tax rate at the item level.

Steps to Define Tax Rate at Item Level:

1. Open the stock item you want to modify.
2. Go to the Stock Item Alter screen.
3. Navigate to the Tax Details section.
4. Select the appropriate GST rate (e.g., 18%).
5. Click Save to confirm the tax rate assignment.

24. Entering Opening Stock Quantity & Amount

Opening stock refers to the quantity and value of inventory items you have on hand at the beginning of an accounting period.

Steps to Enter Opening Stock:

1. Go to Gateway > Vouchers > Inventory Vouchers.
2. Select Opening Balance from the Voucher Type list.
3. Choose the appropriate date for opening stock.
4. Select the godown (if applicable).
5. Enter details for each stock item (name, quantity, rate, amount).
6. Click Accept to save the opening stock entries.

25. Tally Vouchers (Accounting & Inventory)

Vouchers are the primary method for recording financial transactions in Tally.ERP 9. They encompass both accounting and inventory management functionalities.

Common Voucher Types:

• Sales: Records sales of inventory items.
• Purchase: Records purchases of inventory items from suppliers.
• Receipt: Records cash or bank receipts.
• Payment: Records cash or bank payments.
• Journal: Records miscellaneous accounting transactions not covered by other vouchers.

26. Creating New Voucher Type

If the standard voucher types don’t meet your specific needs, you can create custom voucher types in Tally.ERP 9.

Steps to Create a New Voucher Type:

1. Go to Gateway > Accounts Info > Voucher Types.
2. Click Create.
3. Enter the new voucher type name (e.g., Petty Cash Expense).
4. Define accounts to be used for this voucher type (e.g., Petty Cash Account).
5. Click Create to finalize the new voucher type.

27. Introduction to GST

The Goods and Services Tax (GST) is an indirect tax system in India. Tally.ERP 9 allows you to configure GST features for GST-compliant accounting.

Key GST Concepts in Tally.ERP 9:

• GST Rates: Different tax rates apply to various goods and services.
• Input Tax Credit (ITC): Claimable credit on taxes paid on purchases.
• Output Tax Liability: Tax collected on sales and payable to the government.

28. Creating Purchase Ledger

While not directly related to inventory, purchase ledgers are used to track transactions with your suppliers.

Steps to Create a Purchase Ledger:

1. Go to Gateway > Accounts Info > Create > Ledger.
2. **Enter the supplier

Continuing Your Tally.ERP 9 Journey: Transactions, Reporting, and More

Here’s a comprehensive response to your next set of questions on Tally.ERP 9, covering various transaction formats, inventory tracking, cost management, and order processing:

31. Accounting Voucher in Tally (As Invoice Format)

Tally.ERP 9 offers different voucher formats, including the invoice format suitable for recording transactions involving inventory items. Invoices typically show details like:

• Customer/supplier information
• Item descriptions, quantities, and rates
• Taxes and discounts (if applicable)
• Total amount

Creating an Invoice Voucher:

1. Go to Gateway > Vouchers > Create Voucher.
2. Select Sales (for customer invoices) or Purchase (for supplier invoices) as the voucher type.
3. Enter the date and other relevant details.
4. Choose the customer/supplier from the ledger list.
5. Select the stock item(s) and specify quantities, rates, and taxes (if applicable).
6. Review the invoice details and click Accept to save.

32. Inventory Vouchers & Tracking Number

Inventory vouchers are used for various inventory-related transactions in Tally.ERP 9. Some common types include:

• Opening Balance: Records initial stock levels.
• Purchase: Records purchases of inventory items.
• Sales: Records sales of inventory items.
• Receipt: Records receiving inventory items (e.g., from returns).
• Delivery Note: Records issuing inventory items (e.g., for sales orders).

Tracking Numbers: You can assign tracking numbers to inventory vouchers for better tracking (optional but useful for specific items).

33. Bill-Wise Details

“Bill-wise details” can refer to two aspects in Tally.ERP 9:

• Invoice-Level Details: When creating invoices, you can specify detailed information for each item on the invoice (e.g., batch number, expiry date).
• Purchase/Sales Bill Register: Tally.ERP 9 provides reports like the “Purchase Bill Register” and “Sales Bill Register,” which show details of individual purchase and sales invoices.

34. Cost Centers

Cost centers are organizational units within a company where you track and analyze costs incurred. Using cost centers allows you to identify areas of high spending and optimize resource allocation.

Steps to Create a Cost Center:

1. Go to Gateway > Accounts Info > Cost Centers.
2. Click Create.
3. Enter the cost center name (e.g., Marketing Department).
4. Select the parent cost center (optional for hierarchical structures).
5. Click Create to finalize the cost center.

35. Cost Categories

Cost categories are used to classify different types of expenses incurred within a cost center. This helps with further cost analysis and budgeting.

Steps to Create a Cost Category:

1. Go to Gateway > Accounts Info > Cost Categories.
2. Click Create.
3. Enter the cost category name (e.g., Advertising Expense).
4. Select the linked expense account.
5. Click Create to finalize the cost category.

36. Bank Reconciliation

Bank reconciliation is the process of matching your bank statement with your company’s accounting records. This ensures accuracy and identifies any discrepancies.

Steps for Bank Reconciliation in Tally.ERP 9:

1. Go to Gateway > Reconciliation > Bank Reconciliation.
2. Select the bank account and statement period.
3. Enter uncleared items from your bank statement.
4. Match uncleared items with corresponding entries in Tally.
5. Click Accept to finalize the bank reconciliation.

37. Order Processing

Tally.ERP 9 offers order processing functionalities to manage sales and purchase orders. You can create orders, track their status, and generate invoices based on orders.

Steps for Order Processing:

1. Create a sales order: Specify customer details, items, quantities, and delivery date.
2. Process the order: Manage inventory allocation, generate a delivery note, and create an invoice.
3. Track order status: Monitor the progress of the order fulfillment process.

38. Pre-Closure of Order

Pre-closure allows you to mark an order as completed before all items are delivered or invoiced. This can be useful for partial deliveries or situations where final invoicing is done later.

39. Batch wise Details

Batch-wise details refer to tracking inventory items based on their batch numbers. This is helpful for managing expiry dates, product recalls, or identifying specific production runs.

**40. Price List

Continuing Your Tally.ERP 9 Journey: Advanced Features and Reporting

Here’s a comprehensive response to your final set of questions on Tally.ERP 9, covering advanced features, reporting, and data management:

41. Bill of Materials (BOM)

A BOM (Bill of Materials) is a list of raw materials, components, and subassemblies required to produce a finished product. It specifies the quantities of each item needed for production.

Benefits of Using BOMs in Tally.ERP 9:

• Improved production planning and inventory management
• Accurate cost calculation for finished goods
• Streamlined product assembly workflows

Creating a BOM in Tally.ERP 9 (May require advanced configuration):

1. Enable BOM features (consult Tally documentation).
2. Define the finished product as a stock item.
3. Create a BOM record for the product.
4. Specify the components and their quantities needed for production.

42. Manufacturing Journal

The manufacturing journal is a specialized voucher type used to record manufacturing transactions in Tally.ERP 9. It allows you to:

• Track raw material consumption
• Record work-in-progress (WIP)
• Capture production output

Using the Manufacturing Journal (May require advanced configuration):

1. Enable manufacturing features (consult Tally documentation).
2. Select the Manufacturing Journal voucher type.
3. Record details like raw materials used, production output, and labor costs.

43. Zero Value Entries in Vouchers

While generally discouraged, zero-value entries can be made in vouchers for specific purposes in Tally.ERP 9. However, use them cautiously as they don’t reflect actual financial transactions.

Examples of When Zero-Value Entries Might Be Used:

• Recording adjustments or corrections without financial impact
• Creating dummy entries for specific reports

44. Budget & Control

Tally.ERP 9’s budgeting and control features allow you to:

• Set financial budgets for different areas of your business
• Track actual expenses against the budget
• Identify variances and take corrective actions

Steps for Budgeting and Control:

1. Define budget heads (e.g., Sales Budget, Marketing Budget).
2. Allocate budget amounts for each head.
3. Monitor actual expenses through reports.
4. Analyze variances and make adjustments as needed.

45. Security Control

Security controls are essential to protect your Tally.ERP 9 data from unauthorized access.

Security Features in Tally.ERP 9:

• User Management: Create user accounts with specific access levels.
• Data Security Levels: Restrict access to sensitive data.
• Data Encryption: Encrypt your Tally data for added security.

46. Tally Audit

Tally Audit is a tool within Tally.ERP 9 that helps identify potential errors or inconsistencies in your data. It can improve data integrity and reliability.

Running a Tally Audit:

1. Go to Gateway > Audit > Data Consistency Check.
2. Select the scope of the audit (full data or specific ledgers).
3. Click Start to initiate the audit process.
4. Review the audit report for any errors or warnings.

47. Backup & Restore

Regular backups are crucial to safeguard your Tally data from accidental loss or hardware failures.

Backing Up Your Tally Data:

1. Go to Gateway > Security > Data Backup.
2. Specify the backup location.
3. Click Backup to create a backup file.

Restoring Data (if needed):

1. Go to Gateway > Security > Data Restore.
2. Select the backup file you want to restore from.
3. Click Restore to recover your data.

48. Interest Calculations

Tally.ERP 9 can calculate interest on various transactions, such as loans, deposits, or overdue payments.

Features for Interest Calculations:

• Simple Interest: Calculated on the principal amount for a specific period.
• Compound Interest: Interest earned on both the principal and accumulated interest.

Calculating Interest (specific steps vary depending on the transaction):

1. Select the relevant voucher type (e.g., Receipt for interest income).
2. Enter details like principal amount, interest rate, and period.
3. Tally will automatically calculate the interest amount.

49. Actual & Billed Quantity

In Tally.ERP 9, you can track both actual and billed quantities for inventory items.

• Actual Quantity: Represents the physical stock on hand.
• Billed Quantity: Represents the quantity invoiced to customers but not yet delivered.

Monitoring Actual and Billed Quantities:

Continuing Your Tally.ERP 9 Journey: Printing, Reports, Taxes, and More

Here’s a comprehensive response to your final set of questions on Tally.ERP 9, covering printing features, financial statements, tax management, and additional functionalities:

51. Cheque Printing

Tally.ERP 9 allows you to print cheques directly from the software. However, ensure compatibility with your pre-printed cheques and printer settings.

Steps for Cheque Printing:

1. Create a payment voucher (e.g., Payment).
2. Select the payee and enter the payment amount.
3. Click Print and choose Cheque as the output format.
4. Configure cheque printing settings (printer, paper size, alignment).
5. Preview and print the cheque.

Important:

• Use pre-printed cheques with security features.
• Strictly adhere to cheque printing best practices to prevent fraud.

52. Split Company Data

Splitting company data allows you to divide a company’s financial records into separate files in Tally.ERP 9. This can be useful for complex business structures or reorganizations.

Splitting Company Data (Consult Tally documentation for detailed steps):

1. Ensure data integrity and backups before proceeding.
2. Choose the splitting criteria (e.g., by ledger groups, date range).
3. Run the data splitting utility within Tally.
4. Verify the accuracy of split data files.

53. Income & Expense Statement (Profit & Loss Statement)

The income and expense statement (also known as the profit and loss statement) is a financial statement that summarizes a company’s revenues and expenses for a specific period. It shows whether the company made a profit or a loss.

Generating an Income & Expense Statement in Tally.ERP 9:

1. Go to Gateway > Reports > Profit & Loss.
2. Set the date range for the report.
3. Select the ledger (if you have multiple ledgers).
4. Click Display to view the income and expense statement.
5. You can also export the report to various formats (PDF, Excel).

54. Odd/Even Page Printing in Tally

Tally.ERP 9 doesn’t have a specific setting for odd/even page printing. However, you can achieve this through your printer driver settings.

55. Printing in Tally.ERP 9

Tally.ERP 9 offers various printing options for reports, vouchers, and other documents. You can:

• Print directly to a connected printer.
• Preview reports before printing.
• Export reports to various formats (PDF, Excel).

56. Logo Printing

You can customize reports and forms in Tally.ERP 9 by adding your company logo.

Steps for Logo Printing:

1. Go to Gateway > Set/Alter Features > Printing.
2. Click Company Information.
3. Browse and select your company logo image.
4. Adjust logo size and position (if applicable).

57. Multiple Address

Tally.ERP 9 allows you to define multiple addresses for a party (customer or supplier). This can be useful if the party has different billing and shipping addresses.

Steps for Defining Multiple Addresses:

1. Open the party record you want to modify.
2. Go to the Party Alter screen.
3. Click Addresses.
4. Enter details for each address (billing, shipping, etc.).
5. Choose the default address for transactions.

58. Bill Settlement

Bill settlement is the process of reconciling outstanding invoices with payments received. Tally.ERP 9 provides functionalities to track payables and receivables and facilitate bill settlement.

Bill Settlement Features:

• Payment Vouchers: Record payments made to suppliers.
• Receipt Vouchers: Record cash or bank receipts from customers.
• Outstanding Reports: Identify unpaid invoices and overdue payments.

59. E-mail in Tally.ERP 9

While Tally.ERP 9 doesn’t have a built-in email feature, you can integrate it with your email client to send reports or invoices directly from the software.

60. TDS (Tax Deducted at Source)

TDS (Tax Deducted at Source) is a mechanism in India where a tax is deducted at the source of certain payments (e.g., interest income, rent).

TDS Management in Tally.ERP 9:

1. Enable TDS features (consult Tally documentation).
2. Define TDS rates and deduction rules.
3. Create TDS accounts for recording deducted tax.
4. **Record TDS on

Continuing Your Tally.ERP 9 Journey: TDS, Service Companies, and GST

Here’s a comprehensive response to your final set of questions on Tally.ERP 9, covering TDS (Tax Deducted at Source) for service companies, GST (Goods and Services Tax) configuration, and account creation:

61. Enabling TDS in Tally.ERP 9

To manage TDS effectively, you’ll need to enable TDS features within Tally.ERP 9.

Steps to Enable TDS:

1. Go to Gateway > F11: Features > F3: Statutory & Taxation.
2. In the Company Operations Alteration screen, set Enable Tax Deducted at Source (TDS) to Yes.
3. Enable the option Set/alter TDS details to display the Company TDS Deductor Details screen.
4. Fill in the required details:
   • TAN (Tax Deduction and Collection Account Number)
   • Company Name
   • Deductor Type (e.g., Company)
   • Person Responsible (name and designation)

62. TDS Ledger Creation

For TDS transactions, you’ll need dedicated ledger accounts to track deducted tax amounts.

Steps to Create a TDS Ledger:

1. Go to Gateway > Accounts Info > Ledgers > Create.
2. Enter a descriptive name (e.g., TDS on Rent Paid).
3. Select Duties and Taxes as the Group.
4. Choose TDS as the Account Type.
5. (Optional) Select the relevant Nature of Payment from the list.
6. Click Create to finalize the TDS ledger.

63. TDS Voucher Entry

Record TDS deductions on payments made in separate vouchers.

Steps for TDS Voucher Entry:

1. Create a payment voucher (e.g., Payment).
2. Select the payee and enter the payment amount.
3. Click F11: Function and choose TDS.
4. Select the appropriate TDS category and rate.
5. The calculated TDS amount will be deducted from the payable amount.
6. Click Accept to save the voucher with TDS deduction.

64. TDS Computation Report

This report summarizes the TDS calculated and deducted during a specific period.

Generating TDS Computation Report:

1. Go to Gateway > Reports > TDS > TDS Computation.
2. Set the date range for the report.
3. Select the TDS category (if applicable).
4. Click Display to view the TDS computation report.

65. TDS Outstanding Report

This report identifies any outstanding TDS payments you need to make to the government.

Generating TDS Outstanding Report:

1. Go to Gateway > Reports > TDS > TDS Outstanding.
2. Set the date range for the report.
3. Select the TDS category (if applicable).
4. Click Display to view the TDS outstanding report.

66. TDS Payment Report

This report shows the TDS payments you’ve made to the government during a specific period.

Generating TDS Payment Report:

1. Go to Gateway > Reports > TDS > TDS Payment.
2. Set the date range for the report.
3. Select the TDS category (if applicable).
4. Click Display to view the TDS payment report.

67. TDS Report (Comprehensive Report)

Tally.ERP 9 offers a comprehensive TDS report that combines information from computation, outstanding, and payment reports.

Generating Comprehensive TDS Report:

1. Go to Gateway > Reports > TDS > TDS Register.
2. Set the date range for the report.
3. Select the TDS category (if applicable).
4. Click Display to view the comprehensive TDS report.

68. Creating New Service Company

The process for creating a new service company in Tally.ERP 9 is similar to creating a company for any industry.

Steps to Create a New Service Company:

1. Go to Gateway > Create Company.
2. Enter the company name and other basic details.
3. Select the appropriate business type (e.g., Proprietorship, Partnership).
4. Choose the accounting year (financial year).
5. Click Create to establish the new service company.

69. Enabling GST for Services

For service companies registered under GST, you’ll need to activate GST features within Tally.ERP 9.

Steps to Enable GST for Services:

1. **Go to `Gateway > Accounts Info >

Continuing Your Tally.ERP 9 Journey: Service Companies and GST (Continued)

Here’s a comprehensive response to your remaining questions on Tally.ERP 9, focusing on service companies, GST, and keyboard shortcuts:

71. Creating Purchase Ledger (Already Covered in Question 28)

We previously covered creating purchase ledgers in Question 28. Briefly, purchase ledgers track transactions with your suppliers, including purchases of goods or services.

72. Creating Sales Ledger (Already Covered in Question 29)

We previously covered creating sales ledgers in Question 29. Sales ledgers track transactions with your customers, including sales of your services.

73. Creating Supplier Ledger

Supplier ledgers (often referred to as purchase ledgers) are used to manage accounts payable to your suppliers. They record purchases of goods or services on credit, along with payments made.

Steps to Create a Supplier Ledger (Already Covered in Question 28):

1. Go to Gateway > Accounts Info > Create > Ledger.
2. Enter the supplier’s name.
3. Select the appropriate group (e.g., Sundry Creditors).
4. Choose the account type (e.g., Party Account).
5. Click Create to finalize the supplier ledger.

74. Creating Customer Ledgers

Customer ledgers are used to manage accounts receivable from your customers. They record sales of services on credit and track payments received.

Steps to Create a Customer Ledger (Already Covered in Question 29):

1. Go to Gateway > Accounts Info > Create > Ledger.
2. Enter the customer’s name.
3. Select the appropriate group (e.g., Sundry Debtors).
4. Choose the account type (e.g., Party Account).
5. Click Create to finalize the customer ledger.

75. Service Purchase Voucher Entry

Service purchase vouchers are used to record purchases of services from suppliers in Tally.ERP 9.

Steps for Service Purchase Voucher Entry:

1. Go to Gateway > Vouchers > Create Voucher.
2. Select Purchase as the voucher type.
3. Enter the date and other relevant details.
4. Choose the supplier from the ledger list.
5. Select the appropriate service item (if applicable).
6. Specify the taxable value, GST rate (if applicable), and tax amount.
7. Click Accept to save the service purchase voucher.

76. Service Sales Voucher Entry

Service sales vouchers are used to record sales of your services to customers in Tally.ERP 9.

Steps for Service Sales Voucher Entry:

1. Go to Gateway > Vouchers > Create Voucher.
2. Select Sales as the voucher type.
3. Enter the date and other relevant details.
4. Choose the customer from the ledger list.
5. Select the service item you’re providing (if applicable).