Author: Tally Academy

Tally.ERP 9 Series A Release 3.0, Build 09 18th Feb 2011

Posted on by Tally Academy

The new Tally.ERP 9 Release 3.0 is available now!

FREE for all users of Tally.ERP 9.*

Little things in Tally.ERP 9 Release 3.0 enable you to do much more…and impact your business positively. A Bank allocation feature that eases transactions and processing. Or the feature that lets you settle your pending Bills from the outstandings report. Others that let you close your dangling accounts, or boost your business’ image by adding your company logo to invoices.

The highlights of this release are listed below.

  • Rupee Symbol
  • Image Printing
  • Banking
  • Tally Marketplace
  • Bill Settlement from outstanding
  • Pre-Closure of Orders
  • Receipts & Payments Reports
  • Job Work In/Out
  • Income Tax for Salaries
  • Cash flow projection statement
  • Multiple addresses for company and ledger masters
  • Tally in Arabic

Tally.ERP 9 Feature Summary:

  • Quick to install and allows incremental implementation
  • Easy to customise
  • Powerful remote capabilities to boost collaboration
  • Audit & compliance services
  • Integrated support centre
  • Security management
  • Statutory processes
  • Manufacturer’s excise
  • Payroll

Click here for release notes

Click here for download

Tally @ C-Change 2011

Posted on by Tally Academy

Tally was there at last year’s C-Change held at the Goa Marriott. Our presentation titled “Collaborate & Grow” painted a strategic Supply Chain Management story that would help the enterprise CIO take his or her Company to the next level.

In this C-Change we’ll be bringing you predictive means of going beyond technology challenges beginning from the philosophical stages of Design, to demonstrate how technology agnosticism will:

  • Improve usability
  • Reduce noise
  • Boost collaboration
  • Enhance intelligence

Tally Representation

The Tally team will be headed by Shoaib Ahmed-President, and can be engaged with at the Tally stall or at the networking sessions arranged during the event.

Agenda

Date (18th Feb) Session Speaker
16:25 hrs -16:45 hrs Technology Solution Session Shoaib Ahmed

About C-Change

CIOL and Dataquest present the Eighth Business Technology Forum, C-Change 2011. This Annual forum creates a platform that brings together the top 100 CIOs and business leaders for a peer to peer interaction, learning and knowledge sharing about technology from business perspective.

2011 edition of C Change will focus on accelerated change for those CIOs who can bring to the enterprise a new strength repertoire by creating new values and collaborating with newer partnerships and technologies click here for more…

VAT in India

Posted on by Tally Academy

The Value Added Tax (VAT) is a type of indirect tax and is one of major source of revenue to the state. The VAT system was introduced in India by replacing the General Sales Tax laws of each state. Presently in India, out of 35 States and Union Territories, 32 are following this new system of Sales Taxation. The States/Union territories which are yet to implement the VAT system are Andaman and Nicobar Islands, Nagaland and Lakshadweep.

The VAT system of taxation was adopted by Indian States and Union Territories in the Year 2005 by replacing the General Sales Tax Laws with New Value Added Tax Acts and the supporting Value Added Tax Rules for proper administration and collection of Tax. Each state or union territory has its own methods to assess the tax liability and collection methods from the dealers who fall under the purview of VAT.

The Administration of VAT system was undertaken by the Commercial Taxes Department of each state along with the Excise and other indirect taxes. For easy and quick assessment of taxation and prevention of tax evasion, the department has introduced the Registration System. This Registration system of VAT helps in identifying the assessees who come under purview of VAT and are liable to collect and pay VAT. For encouraging the Registration process some benefits or concessions are given to the dealers.

The Registered dealers are allowed to collect VAT payable by them from the immediate buyer. They can claim the VAT paid on purchases made only from a registered dealer. The unregistered dealer cannot charge VAT on the invoices, so the buying dealer cannot claim the VAT amount paid as ITC. Also, the unregistered dealers are not eligible for availing concessions, for e.g., exemptions, which are given by the government.

The commercial tax department introduced a new method of levying tax called as the Composition Scheme especially after considering the small dealers whose turnover was low and were unable to maintain the records as per the requirements of VAT Act. These dealers have to pay a lump sum as VAT on the sale value of goods. The VAT paid will not be shown in the invoices. They can account for the total turnover and pay VAT on the same at the end of the return period.

For Assessing the VAT liability of dealers, each state has introduced the system of Filing Returns for different tax periods. The tax periods could be Monthly, Quarterly, Half-yearly and Annual. Each dealer has to file the Return by specifying the total turnover which is exempted as well as liable for VAT along with the purchases made and tax paid on it with the amount of VAT payable or Input tax credit carried forward within the stipulated period.

For General Tally Terminologies related to VAT Click here

Simple Reorder Level and Minimum Quantity in Tally ERP 9

Posted on by Tally Academy

The Reorder and Minimum order quantity is defined based on fixed consumption pattern.

When you select the Stock Group under the Reorder Levels menu, the Simple Reorder Levels screen will be available, by default.

Go to Gateway of Tally > Inventory Info. > Reorder Levels

Select a group of Stock Items from the List of Groups, to specify Reorder Levels for the Stock Items in the Specify Reorder Levels screen. For each item in stock, you can define a Reorder Level and the Minimum Order Quantity.

The Simple Reorder Levels screen appears as follows:

Reorder Quantity

Enter the level/quantity in the Reorder quantity field.

Minimum Order quantity

Specify the minimum order quantity required based on economical order lot predetermined.

In Simple Reorder Levels screen, the consumption alternatives will not be available and hence you have to input the only the quantities. i.e., the options that you have in the above mode are to define Reorder Quantity and Minimum Order Quantity.

If you have used Advanced Reorder options earlier, click Simple Reorder button, to specify simple reorder levels.

The options available in the Reorder Levels screen are as follows :

R : Adv Reorder

Press Alt+R to toggle to Advanced Reorder Levels screen.

M : Adv Min Qty

Press Alt+M to toggle to Advanced Minimum Order Quantity screen

Form type in Tally ERP 9

Posted on by Tally Academy

Depending on the nature of sales transaction you can select the applicable Form Type.

  • C Form is for sales made to registered customers.
  • D Form is for sales made to government.
  • F Form is for Branch transfers.
  • H Form is for deemed exports.
  • I Form is for SEZ Customers.
  • J Form is for sale made to Diplomatic Mission & U.N etc. Form J will be displayed for selection based on the State selected for CST compliance.

In case where the Inter-state sales transaction does not involve the receipt of C Form, select Not Applicable in the Form to Receive field of the sales invoice.

Inter–state Sales Invoice in Tally ERP 9

Posted on by Tally Academy

Interstate Sales Against Form C

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

  1. Select As Invoice
  2. Enter the reference in the Ref. field, if required
  3. Select the Party’s A/c Name from the List of Ledger Accounts
  4. Select the Sales Ledger with the VAT/Tax class –  Interstate Sales @ 2% Against Form C.
  5. On selecting the Sales Ledger, the VAT/Tax Class appears accordingly. In case the VAT/Tax Class is not defined in the master, select Interstate Sales @ 2% Against Form C from the VAT/Tax Class list.
  6. Select the Name of Item from the List of Items.
  7. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
  8. Select the CST ledger grouped under Duties & Taxes with Type of Duty/Tax as CST and VAT/Tax Class – CST @ 2% from the List of Ledger Accounts. The amount of CST is automatically calculated on the assessable value.
  9. Select Form C as Form to Receive, if applicable.

  10. The Form number and Date fields will be displayed on selecting the Form to Receive from the Form Types list.
  11. Enter the Form number and Date if available for the Form selected
  12. Set Show Statutory Details field to No
  13. Enter Narration if required

  14. Press Enter to accept and save.

Enabling Cheque Printing in Tally ERP 9

Posted on by Tally Academy

To enable Cheque Printing in Tally.ERP 9,

  1. Go to Gateway of Tally > F11: Accounting Features
  2. Set Enable Cheque Printing to Yes
  3. Set/Alter Cheque Printing Configuration to Yes.

The screen appears as shown.

Once the option Set/Alter Cheque Printing Configuration is activated to Yes, you will get the Company Cheque Details screen.

Company Cheque Details screen Appears as shown

Company Name on Cheque:

To print the company name on the cheque for signature purposes, mention the name of the Company (for example, ABC Company). If you do not want Tally.ERP 9 to print the name, you can leave it blank. Many banks issue cheques with your company name printed.

Name of Banks

Select the Bank from the Bank accounts list.

You will have to fill in the dimensions of the cheque. Tally.ERP 9 accepts user defined cheque dimensions. Take the banks cheque book and measure the dimensions of a cheque leaf carefully in millimeters and fill in the above form. You may need to correct it after trying out a couple of cheques so that the positioning is accurate. The placing of the cheque in the printer also determines the printing. To avoid mistakes trial could be made on photocopies of a cheque before using an actual cheque leaf.

General Tally Terminologies

Posted on by Tally Academy
Term Description
Input Tax This is the tax paid on purchases
Output Tax This is the tax charged on sales
Input Credit The excess amount of Input tax over output tax for the current period which is permitted to be set off against Output tax of subsequent periods is termed as Input Credit.
TIN Tax Identification Number (TIN) is the Registration Number given by the department to the dealer at the time of  Registration. This needs to be quoted at all required places where the registration details are to be provided.
Tax Invoice This is the Sales invoice format issued by one Registered Dealer to another. Based on this Invoice, the ITC can be claimed by the purchasing dealer.
Retail Invoice The Sales invoice format used for invoicing the Exempted Sales and the Sales made to Unregistered dealers is termed as Retail Invoice.
Registered Dealer This term is used to identify a dealer who is registered either under Voluntary Registration or Compulsory Registration under the VAT Act. Such dealer can issue tax invoice and also claim the tax paid on purchases made from other registered dealers as Input tax credit.
Unregistered Dealer Dealers who are not registered under the VAT Act are called as Unregistered Dealers (URD). Such dealers cannot issue tax invoice. They can neither Charge Tax nor Claim Input Tax Credit.
Purchase Tax The Tax paid on goods purchased from unregistered dealers is liable to Purchase Tax. The purchase tax is treated as Output VAT payable by the dealer as it is a liability. It has to be paid while making the payment towards VAT liability. Based on the Rules and Regulations, the Input Tax Credit can be claimed on the payment made towards Purchase Tax.

How to account TDS deducted by your customer

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When we raise an invoice to our client, on which our client is requires to deduct TDS and pays the balance amount to us. The amount so deducted by our client, he is liable to pay it to the Income Tax department within first week of next month, hence its a receivable for us which we have to claim from the Income Tax Department and not from our client.

Now, we will see how to handle this situation in Accounts and Tally ERP 9 ?

Suppose we  have issue a bill of Rs. 80000 on which Customer deducted TDS of Rs. 800 and pays you Rs. 79200 back to us. Then the entry in your books will be as under :

Particulars Amount
Dr. Bank Account Rs. 79200
Dr. TDS Receivable Account Rs. 800
Cr. Customer Rs. 80000

( This ledger should be open under the Group Loans & Advances (Asset))

The result will be that your customer a/c will be settled off and the TDS amount will be shown as receivable in the Balance sheet which we have to claim from the Income Tax department. We will get Form No. 16A From our client in this regard in support of our claim.