MSME in TallyPrime

Posted on May 2, 2024May 17, 2024 by Tally Academy

Identify, Track, Pay, and Report Payments to MSME Businesses

In this topic we will learn about the challenges faced by the MSME businesses due to the lack of visibility of their MSME status. We will also look into the provisions made by the Government to support such businesses and how the use of TallyPrime will improve the visibility in their business transactions and accelerate the movement of funds.

Micro and small businesses registered under the MSMED Act, 2006, get benefits such as loans at a lower interest, payment guarantees from buyers, and so on. The payment guarantee provision protects these businesses from delays in payment from their buyers. As per this act, any buyer of goods or services from registered MSMEs must make the payment on or before the agreed date or within 45 days. In case of a delay in payment beyond the specified date, buyers must pay interest on the amount. Generally in such cases, the interest rate is three times more than the rate that is notified by the Reserve Bank of India.

Additionally, the Ministry of Corporate Affairs (MCA) has notified that companies having outstanding dues to the MSME (Micro & Small) enterprises have to file the details of all the current outstanding dues to MSMEs in MSME Form-1 with the ROC (Registrar of Companies).

Despite all these facilities, the micro and small businesses are not fully benefitting from the provisions in the MSMED Act. This is primarily due to the absence of an identification for MSME Suppliers, which allows the buyers to omit/miss the MSME status of the supplier in their annual statement of accounts. As a result, the auditors do not detect such omissions because of the non-availability of any identification for MSME status.

The MSMEs should mention/print their MSME status on their invoices, bills and other relevant documents. The visibility provided to buyers and their accountants will help in the release of the payments on time and it will be also easy to file for compensation in case of delay in payments.

TallyPrime with its MSME feature will play this role of increasing the visibility of MSME status.

MSME Enterprises will be able to update their UDYAM Registration details and print the same in business documents.
Buyers from MSME can update UDYAM Registration details in ledgers and filter bill payables for MSMEs to ensure timely payment. They can also readily get details for MSME Form 1 for all overdues to MSME suppliers.

Buyers Update MSME Party’s UDYAM Details in Ledgers

The businesses purchasing goods and services from MSMEs can set up the status of the supplier as MSME. This sets reminders to make payments on time to all such parties and avoid paying interest for late payments. This also enables you to create and file returns quickly with all the details of payments to MSMEs.

Set/Update MSME UDYAM details for a Single Party

You can update the UDYAM details of MSME suppliers in the ledger master.

Press Alt+G (Go To) > Create Master or Alter Master > Ledger.
Enter basic party details like Name, Group, Address, if you are creating a new ledger.
Press F12 (Configure).
1. Set the option Provide MSME Registration Details to Yes.
2. Press Ctrl+A to save the configuration.
Enable Set/Alter MSME Registration Details.
Press Enter.
In the MSME Registration Details screen
1. Select the enterprise type of the party in the Type of Enterprise field.
2. Enter their UDYAM Registration Number.
3. Press Enter.
4. Enter the Effective Date for MSME Registration Details and press Enter.
Press Ctrl+A to save the ledger master.

MSME Registration Details History

In case you make the change to you registration details due to change in the enterprise type or other such updates, and provide effective date for such changes to be applicable from, then all such changes are recorded and can be accessed from the history.

You can view the history of changes made to MSME registration details.

Press Ctrl+I (More Details).
Select MSME Registration Details (History)

Update UDYAM Details for Multiple MSME Suppliers

TallyPrime provides option to update the UDYAM Details of multiple suppliers at once. This will help you update MSME details of all your MSME suppliers in one go.

Press Alt+G (Go To) > type or select Update Party MSME Details.
Alternatively, Gateway of Tally > Display More Reports > Statutory Reports > MSME Reports > Update Party MSME Details.
Select a specific group or All items in the Name of Group field.
Select a specific ledger or All items in the Name of Ledger field.
1. Select the party to update the UDYAM details and Alt+H or Enter.
2. Select the Type of Enterprise and enter UDYAM Reg No. of the party.
3. Press Enter.
  1. Enter the Effective Date for Revised MSME Registration Details to apply the UDYAM details from that date.
  2. Press Enter.
4. Press Enter or Y to save the UDYAM Details for the party.

You can also enter the UDYAM details for all parties in the same screen.

Press Alt+R (Multi Alter).
You can enter Default Credit Period, Type of Enterprise, and UDYAM Reg No. in the respective columns for any party.
Enter Effective Date for each party that you alter.
Press Ctrl+A to save the details.

Check Upcoming Due Dates for Payables

As a buyer, you need to identify and track the payments related to MSME suppliers or service providers to avoid exceeding the date agreed upon between you and the supplier. You need to consider all bills from MSMEs and cannot afford to miss out on any bill. The penal interest chargeable for delayed payment to an MSME enterprise is three times the bank rate notified by the Reserve Bank of India.

In case of delayed payments, MSME can file a complaint with MSME Samadhaan to get the payment along with interest.

Press Alt+G (Go To) > type or select Group Outstanding > Sundry Creditors.
Alternatively, Gateway of Tally > Display More Reports > Statement of Accounts > Outstandings > Payables.
Press Ctrl+B (Basis of Values).
Select Show Bills of and press Enter.
1. Select Micro & Small Parties option to view only the bills of micro and small parties.
2. Press Enter.
Select Type of Bills and press Enter.
Select the following based on:

- All Bills, to view all the payable bills.
- Bills Due in Upcoming Days, to see bills that upcoming in a specific number of days. You can specify the number of days in Show bills due in the next.
- Overdue Bills, to see only the bills that are overdue.
- Pending Bills, to only the pending bills.
- In the Show bills due in the next field, enter the number of days to see bills that become due within the given number of days. This option appears only when you select Bills Due in Upcoming Days.
- Press Enter.
- Press Ctrl+A to save.

The report shows the bills based on the selection in Basis of Value. In case you had selected Bills Due in Upcoming Days and set the number of days as 10, the bills that are due in the next 10 days are shown.

By default, the report displays the Due on date for all the bills. You can change this to days until due date, overdue days, and overdue days from bill date.

Configuration

You can add further details to the report using the configuration options.

Show Due on: Set this option to Yes, to view the date on which a bill becomes due for payment. The due date is considered based on the credit days set for the party. It can be the credit days specified in the invoice or in Credit Days Allowed for Micro & Small Parties under F11.

Note: The No. of Credit Days Allowed for MSMEs can be of two types, a. where there is an agreement with the MSME and b. where there is no agreement. Both type of credit days can be set. The due date will be calculated on the type of credit days configured.

Show no. of days till Due Date: Set this option to Yes to view number of days until the due date for each bill in Days till Due Date column.
Show Overdue Days/Bill age in Days: Set this option to Yes to view the number of overview days in Overdue by Days column.
Show Overdue days from Bill Date: Set this option to Yes to view the number of days since the day of billing in the Age of Bill in Days column.

View and Export MSME Form 1 Statement

As per a notification issued by the MCA, buyers from MSMEs should file disclosures through MSME Form 1 containing all the current outstanding dues to MSMEs periodically (1-Apr to 30 Sep) & (1-Oct to 30 Apr).

It is mandatory to file the MSME form 1 to avoid fines for non-furnishing/incomplete/incorrect information penalty.

TallyPrime provides Statement of MSME Form 1 with all the required details. The form lists all the MSME suppliers with UDYAM Details and having current outstanding dues. You can print the Form in the format prescribed for filing returns.

Press Alt+G (Go To) > type or select MSME Form 1 Statement.
Alternatively, Gateway of Tally > Display More Reports > Statutory Reports > MSME Reports > MSME Form 1 Statement.
Press Alt+P (Print).
Select Return Form and press Enter.
Press P (Print) to print the MSME 1 form.

The MSME Form 1 statement in TallyPrime by default displays all the details required to be filed in returns. You can add further details using the configuration options.

Configuration

You can add further details to the report using the configuration options.

Show the Type of Enterprise: Enable this option to show the Type of Enterprise set in the ledger master of the MSME suppliers.

Show PAN/IT No.: Enable this option to display the PAN/IT number of the MSME party.

Show UDYAM Reg No.: Enable this option to display the UDYAM number of the party, this is enabled by default.

Show Due on: Enable this option to display the Due on of each bill. This is set to Yes by default.

Based on Credit Days provided in: Under this you can select the option to arrive at Due On date, The options provided are:

Bill-wise Details (as per invoice)– Due on date is arrived based on credit days specified in bill-wise details of the invoice.
MSME Credit Period (from Company features, as per agreement) – Due on date is arrived based on msme credit days set for the party.
Bill-wise or MSME Credit Period (whichever is earlier) – Due on date is arrived based on earliest credit days set in bill-wise and in msme credit days.

Show Cleared On: Enable this option to see the date on which the bill was paid off.

Show Credit Days: Enable this option to see the credit days set for the MSME party

Show no. of days till Due Date: Set this option to Yes to view number of days until due date for each bill in Days till Due Date column.

Show Overdue Days/Bill age in Days: Set this option to Yes to view the number of overview days in Overdue by Days column.

Show Overdue days from Bill Date: Set this option to Yes to view the number of days since the day of billing in the Age of Bill in Days column.

How to Create and Use Barcodes for Inventory Management with TallyPrime

Posted on April 25, 2024May 13, 2024 by Tally Academy

TallyPrime is one of the most widely used business management software that allows you to get complete control over your inventory, from managing, tracking, and reordering it to much more. One of its key features is barcode assignment.

TallyPrime lets you quickly assign barcodes to your inventory, which makes inventory management and tracking a breeze. But how can you best use TallyPrime’s barcode feature for efficient inventory management? Read on to know more about the same.

5 vital things you should know before using barcodes with TallyPrime

Be clear on the type of barcode standard you would want to match your line of business. Some of the common barcode scanners that TallyPrime supports are Universal Product Code and International Article Number.
Next, you need a proper barcode generator that is in line with the barcode scanner you have selected.
Every item in your stock should be assigned a unique barcode.
In TallyPrime, you can choose a barcode that has a maximum of 32 characters.
When using the barcode scanner on your inventory, the appropriate software should be installed in your system, and the scanner should be connected to your system at all times.

A brief overview of the steps involved in barcode creation in TallyPrime

Before you know about these steps to create barcodes in the software, it would be a good idea to have a customised module of TallyPrime to suit the nature of your business

You will first assign barcodes to your stock items in TallyPrime by opening a particular item in the master file.
When you open this item, you will find the name of this item in the left-hand corner. Below this field, you will notice a field named, “Alias”. Here, you can enter the unique barcode for that item.
Please remember to press Ctrl-A after entering the code, to save the details. This way, the code will come up automatically whenever you enter the name of the item in the TallyPrime module.

Steps to generate vouchers, using the barcodes you have created:

To create a voucher, press Alt+G on the main module page.
Now, press F8 to view the sales page.
In the page that appears, you will find the field, “Name of item”. Keep your cursor in this field, and use the barcode scanner to scan the codes on the items. You will notice that the unique barcode of that particular item will automatically appear on the screen now.
All you need to do is enter the rate and quantity of the items, and the amount gets calculated automatically.
You can now save the voucher after entering the relevant GST details.
With this process, you can now create sales, purchases and other transactions within minutes, thanks to the automatic barcode generation feature of TallyPrime.

Why choose TallyPrime for assigning barcodes to inventory?

Have you wondered how using barcodes with TallyPrime will help you have better control over your inventory than before? Here are some points that will clear any ambiguity you might have:

Simple to use – Once you have the proper system in place, including the required software to create and print barcodes, you will have almost finished the process of assigning barcodes to your inventory. This process is simple, and with a single scan, all the details of your inventory get recorded into your system for easy management and tracking.
Good value for money – Using TallyPrime and a good barcode generator would cost your business only a few thousand of rupees. However, the value it generates is priceless, as it helps you manage all your inventory (across all locations) from a single point with utmost efficiency. The peace of mind you get when you have taken professional care of your inventory cannot be explained in words.
Accurate data at all times – Data accuracy plays a big part in the success and integrity of your business. With the barcode system of TallyPrime, you can be sure of data accuracy at all times because manual intervention is reduced considerably.
Guaranteed safety of inventory – When you have proper barcodes assigned to your inventory, you don’t have to worry about them getting lost or destroyed in transit. You can easily track the status of your inventory with these codes, and ensure that they get delivered to the right customers at the right time. Every type of inventory is assigned a specific code; hence, there are no chances of duplications or missing stock.
Better management of inventory across different locations – Without the help of technology and sophisticated software tools such as TallyPrime, it is almost an impossible task to manage and track inventory in different locations. With a single, centralised system, you can fulfil all customer orders by tracking your stock levels in multiple locations.
Increased speed, efficiency and accuracy – With Tally’s barcode system, you can increase the speed and efficiency of your inventory management. You don’t have to spend time manually recording the inventory as the items enter/leave your warehouse. You can rely on the automated processes of the software to do the job perfectly for you. This way, you have enough time on your hands to concentrate on other core areas of your business.

How to Easily Shift/Migrate Your Data to TallyPrime

Posted on April 13, 2024May 13, 2024 by Tally Academy

Many businesses use Excel spreadsheets to manage their books of accounts. While this setup may be enough for a small organisation, businesses find it necessary to adopt an accounting software when they begin scale their operations. Adopting a new software comes with its difficulties.

When you start to use the new software for your accounting operations, the first step you will need to perform is entering all of your spreadsheet data into the new system. For many software products in the market this is a manual task.

With TallyPrime you can easily migrate your excel data to the software. The latest version of TallyPrime 4.0 has a handy Excel Import function. As the name suggests, this feature will help you to migrate all the data from your Excel files to the software without any manual effort.

Steps to migrate data to TallyPrime from an Excel worksheet

Given below are the steps to migrate data from Excel spreadsheet to TallyPrime

Click on Alt+O, and then choose the Configurations from the Import Screen.

You will see the List of Configurations on the screen now. Click on the Show More option to view the entire list.
In this list, there are two sections—General and Banking. Here are the options you will see under the Banking section:
- Location of the Import/Export Files—Choose where to save the file after successful import or export.
- The behaviour of Import when exceptions exist—When the original file has some exceptions (like missing data or invalid data), how do you want to import it to TallyPrime? Choose if you want to ignore the exceptions, import with exceptions, or stop the import when you notice the first exception.
- Overwrite vouchers—Set the option to “Yes”. This way, duplicate vouchers will be overwritten if the export and import files are of the same company.
- Removal of invalid characters—Set the option to “Yes”. This way, invalid characters like additional spaces, tabs and other noise characters will be removed from the Excel file before importing.
- Import batch size—How many files do you want to import at a time? You can set the batch size accordingly here.
- Enable detailed log—Do you want to see a detailed log of errors during data import? Set the option as per your preferences.

Once you follow these steps, your data gets seamlessly migrated to TallyPrime so that you can continue your business operations effectively.

Advantages of migrating data to TallyPrime

With only a few clicks, you can migrate all the data on your vouchers, customer orders and other external software to TallyPrime. This saves you a great deal of time and effort while eliminating manual errors.
Thanks to the import functionality in TallyPrime, you can import any data in the new software at your convenience. Even if the original file has invalid data, missed data, or unorganised data, you can easily import to their respective fields on TallyPrime.
Once you import the data in TallyPrime, you can save this template for later use for similar kinds of data. It also provides several samples, which you can use to import your data to get the correct data in the proper fields within minutes. You can even customise a template as per your preferences.
When you import data to TallyPrime, you can also select the option of seeing detailed error logs. This helps you check for possible log errors, and correct them automatically. These logs will help you avoid similar errors in the next batch of imports.