Tally ERP 9 Chepter 3: Set Business Preferences | Company Features

When you create a company in Tally.ERP 9, the key features required to start recording your business transactions are set by default. As per your business requirements - such as inventory management, tax-based invoicing, payroll management, audit and security management - you can set your preferences using the Company Features .

Maintain your books of accounts : The key features required to get started with your bookkeeping needs are enabled as you create your company in Tally.ERP 9. You can further set your preferences for the company based on your business practices. If you want to manage your inventory, track your outstandings, use banking options to manage cheques and modes of payment, or use payroll for your profit centres, Tally.ERP 9 helps with all such business preferences and many more.

Manage your stock/inventory : If you are using inventory in your business, Tally.ERP 9 also helps you set up your inventory-related preferences. Starting with storage and classification of inventory to managing your sales, purchases, pricing of stocks, and even orders, you can enable the inventory options as needed.

Set up statutory : Businesses that need to comply with statutory requirements can set up their tax details for invoicing purpose. With Tally.ERP 9, you can define details for GST, VAT, Excise, Service Tax, TDS or TCS, as applicable to your business. All invoices that you create will continue to refer to the statutory details you define here.

Tally Software Services (TSS) and Audit : If you have enabled security settings for your company and subscribed to TSS for receiving updates from Tally, you can predefine your contact details required to receive communications about TSS. You can also set your preferences for some of the key features, such as Tally.NET, Synchronisation, and so on.

Businesses opting for statutory audit can preset the company in Tally.ERP 9 for audit priorities and categories. Refer to the Audit topic.

Add-ons : Customised business needs are also accommodated in Tally.ERP 9. You can use the TallyShop feature to purchase available add-ons as per your business needs.

On this page

● Accounting Features

● Inventory Features

● Statutory and Taxation

● TSS Features

● Audit Features

● Add-Ons

Maintain Your Books of Accounts | Accounting Features

The key features required to get started with your bookkeeping needs are enabled as you create your company in Tally.ERP 9. You can further set your preferences for the company based on your business practices. If you want to manage your inventory, track your outstandings, use banking options to manage cheques and modes of payment, or use payroll for profit centres, Tally.ERP 9 helps with all such business preferences and many more.

Press F11 (Features) > F1 (Accounts).

Note: If inventory vouchers and features are not appearing for your company, set the option Maintain accounts only to No , to use the Inventory features.

In this section

● General

● Outstanding Management

● Cost/Profit Centres Management

● Invoicing

● Budgets and Scenario Management

● Banking Features

● Other features

General

Option	Functionality	Additional Information
Maintain accounts only?	Enable this option if you do not want to maintain any inventory.
Integrate accounts and inventory?	Enable this option to maintain your stock or inventory along with your books of accounts.	Stock records may contain errors caused by wrong allocation to items. This feature enables finalization of financial books without waiting for the reconciliation of stocks. You can drill down from the Balance Sheet to view the Stock Register.
Use Income and Expenses A/c instead of Profit and Loss A/c?	Enable this option to display Income and Expenses A/c as the menu item instead of Profit and Loss A/c in Gateway of Tally .	Income and expenses statements are generally used for non-trading accounts and profit and loss a/c are used for trading accounts.
Enable multi-currency	Enable this option to allow working with multiple currencies - especially when you have parties transacting with you in currencies other than the base currency set for your company.

Outstanding Management

Option	Functionality	Additional Information
Maintain bill-wise details?	Enable this option to display the option Maintain balances bill by bill created under sundry debtors and creditors. When you enter details of sales and purchases with the bill-wise option activated, Tally.ERP 9 prompts you to identify the invoice with an appropriate reference number.	The reference number can then be used to allocate payments to the correct invoice to maintain an accurate account of outstanding. Bill-wise details for non-trading accounts is useful when one needs to track either an installment to be paid or a loan amount to be received over a certain period of time.
Activate interest calculation?	Enable this option to calculate interest automatically based on the interest rate and the style of calculation specified.	This is useful when interest rates change from time to time.

Cost/Profit Centres Management

Option	Functionality
Maintain payroll?	Enable this option to maintain payroll information in Tally.ERP 9 for the selected company.
Maintain cost centres?	Enable this option to maintain and allocate expenses to cost centres.
Use cost center for job costing?	Enable this option to track all income and expenses.
Maintain more than one payroll or cost category?	Enable this option to create more than one Payroll or Cost Category.
Use pre-defined cost centre allocations in transactions?	Enable this option to define Cost Centre Allocations.
Show opening balance for revenue items in reports?	Enable this option to display the opening balance in Cost Centre report for the cost centres which are allocated to the ledgers, grouped under Income and Expenses Group.

Invoicing

Option	Functionality
Enable invoicing?	Enable this option to create Sales and Purchase vouchers in the invoice format.
Record purchases in invoice mode?	Enable this option to enable voucher class option in the purchase voucher type.
Use debit and credit notes?	Enable this option to use the debit note and credit note voucher types.
Record credit notes in invoice mode?	Enable this option to create credit notes in invoice mode.
Record debit notes in invoice mode?	Enable this option to create debit notes in invoice mode.

Budgets and Scenario Management

Option	Functionality
Maintain budgets and controls?	Enable this option to create multiple budgets. The Budgets menu option is displayed in Gateway of Tally > Masters Info. > Accounts Info. .
Use reversing journals and optional vouchers?	Enable this option to display the Scenario option in Accounts Info. menu . You can create and alter scenarios. You can record a Reversing Journal and make it Optional so that the entries do not affect the books.

Banking Features

Option	Functionality
Enable cheque printing?	Enable this option to use cheque printing .
Edit banking features?	Enable this option to alter banking features.
Set/alter post-dated transaction features?	Enable this option to record post-dated transactions and view related reports.

Other features under Accounting

Option	Functionality
Enable zero-valued transactions?	Enable this option to allow zero-valued transactions in vouchers.
Maintain multiple mailing details for company and ledgers?	Enable this option to maintain multiple mailing details for your company and ledgers .
Set/alter company mailing details?	Enable this option to create or alter Address Types .
Enable company logo?	Enable this option to print the company logo on the selected vouchers, reports, and invoices. Specify the path of the logo image file in the Location of logo field . For example, C:\Tally.ERP9\CompLogo.bmp. The company logo is printed on the top left of the respective voucher, report, or invoice. It is mandatory to save the logo as Bitmap or JPEG image file. Ensure that the extension .bmp or .jpg is specified while providing the location of logo. The recommended size for logo image is 96 x 80 (Width x Height) pixels .

Manage Your Stock | Inventory Features

If your business includes selling or purchasing of stock items or storing the stock items for manufacturing or job works, Tally.ERP 9 also takes care of your inventory-related preferences. Starting with storage and classification of inventory to managing your sales, purchases, and even orders, you can enable inventory options for all such needs.

Press F11 (Features) > F2 (Inventory).

In this section

● General

● Storage and Classification

● Order Processing

● Invoicing

● Purchase Management

● Sales Management

● Other Features

General

Option	Functionality	Additional Information
Integrate accounts and inventory?	Enable this option to maintain your stock or inventory along with your books of accounts.	Stock records may contain errors caused by wrong allocation to items. This feature enables finalization of financial books without waiting for the reconciliation of stocks. You can drill down from the Balance Sheet to view the Stock Register.
Enable zero-valued transactions?	Enable this option to allow zero-valued transactions in the Inventory vouchers.

Storage and Classification

Option	Functionality
Maintain multiple Godowns / Excise Units?	Enable this option if you have more than one stock storage locations or godowns, and you want to track stock movement across these locations.
Maintain stock categories?	Enable this option to create and maintain stock categories.
Maintain batch-wise details?	Enable this option to maintain batch information pertaining to Stock Items. Setting this option to Yes displays the Maintain in Batches field in the Stock Item Creation screen.
Set expiry dates for batches?	Enable this option to set expiry dates for the batches. This displays an additional field Use Expiry Dates in the Stock Item Creation screen.
Use separate actual and billed quantity columns?	Enable this option to specify quantities that are different from those delivered/received when invoicing.

Order Processing

Option	Functionality
Enable purchase order processing ?	Enable this option to create purchase orders. This feature can also be used for pre-closure of purchase order.
Enable sales order processing ?	Enable this option to create sales orders.
Enable job order processing?	Enable this option to create Job Work Out or Job Work In orders.

Invoicing

Option	Functionality
Enable invoicing?	Enable this option to create Sales and Purchase vouchers in the invoice format.
Record purchases in invoice mode?	Enable this option to use the voucher class option in the purchase voucher type.
Use debit and credit notes?	Enable this option to use the debit note and credit note voucher types.
Record credit notes in invoice mode?	Enable this option to create credit notes in invoice mode.
Record debit notes in invoice mode?	Enable this option to create debit notes in invoice mode.

Purchase Management

Option	Functionality
Track additional costs of purchase?	Enable this option to obtain a break-up of purchase costs, without the need to separately debit ledger accounts for expenses.

Sales Management

Option	Functionality
Use multiple price levels?	Enable this option to create multiple price levels.

Other features under Inventory

Option	Functionality
Use tracking numbers  (enables delivery and receipt notes)?	Enable this option to use tracking numbers to maintain the relation between delivery notes and invoices. This is available for both purchases and sales.
Use rejection inward and outward notes?	Enable this option to record rejection of goods separately and not through a common debit note or credit note.
Use material in and out vouchers?	Enable this option to record transfer of item quantity towards the party and transfer material from one Godown/Location to the other.
Use cost tracking for stock item?	Enable this option to analyse the cost involved for an item.

Set Up Statutory and Taxation

As per the Department, if your business falls under a particular tax, you can enable the tax type for your company. In Tally.ERP 9, you can set up the statutory details for the company - specify details for GST, VAT, Excise, Service Tax, TDS ad TCS. All invoices you create will continue to refer to the statutory details you specify here.

Press F11 (Features) > F3 (Statutory).

Option	Functionality
Enable Goods and Services Tax (GST)? Set/alter GST details?	If your business is under the GST regime, you can enable these options and specify the GST details for your company. Next time you press F11 (Feature), the Set/alter GST details option is defaulted to No . This is to help avoid opening the GST Details screen again, unless you have to make any changes. To make any updates, enable the Set/alter GST details .
Enable Value Added Tax (VAT)? Set/alter VAT details?	If your business is under the VAT regime, you can enable these options and specify the VAT details for your company.
Enable excise? Set/alter excise details?	Enable these options to allow considering excise-related details during voucher entry.
Enable service tax? Set/alter service tax details?	If you pay service tax as part of your business transaction, enable these options to specify the service tax details and set the preferences for your company.
Enable Tax Deducted at Source (TDS)? Set/alter TDS details?	If your businesses considers TDS payments, enable these options and specify the TDS deductor details along with the applicable Rates and Exemptions.
Enable Tax Collected at Source (TCS)? Set/alter TCS details?	If your businesses considers TCS payments, enable these options and specify the TCS collector details along with the applicable Rates and Exemptions.

Set Up Tally Software Services (TSS) and Audit

Tally Software Services (TSS) is a set of capabilities that can meet certain customised requirements in a business. You can avail capabilities such as continuous improvements to the product, central consolidation of all branch office data over secure servers, remote connectivity, banking services, instant support from within Tally.ERP 9, and many more that enhance business performance. If you have availed TSS to receive updates from Tally, you can predefine your contact details and set your preferences for some of the key features, such as Tally.NET, Synchronisation, SME, and so on. For more information, refer to the TSS topic.

In this section

● TSS Features

● Tally Audit

TSS Features

Press F11 (Features) > F4 (TSS).

Before you could view the TSS features, ensure that you have enabled the security settings for your company.

1. Gateway of Tally > Alt + F3 (Cmp Info) > Alter .

2. Set Use security control to Yes .

3. Enter the required credentials and accept. As always, you can press Ctrl + A to save.

Option	Functionality	Additional Description
Connection Details	Enter these details based on how you want the company in Tally.ERP 9 to be recognised through connected services, like Remote Access, Data Synchronisation, and so on.	The connect name entered here must be entered during client rule creation.
Connectivity Features	● Connect for broswer access : Once you company is connected to Tally.NET server, you can access the key business report from the broswer in any device using your Tally.NET credentials. ● Connect to Tally.NET Services : Enable this option to use features like Remote Access and Synchronisation. ● Connect company on loading : Enable this option to connect your company automatically once you load it.	If you wish to avail connected services, you can connect your company to the Tally.NET server.
SMS Access details	With TSS subscription, you are eligible to receive updates through SMS.	The company name in the SMS Company Name field should not exceed 8 characters.

Audit Features

Press F11 (Features) > F5 (Audit).

Option	Functionality
Enable audit working paper	Enable this option to allow the auditor to audit the working paper. The auditor should document matters which are important in providing evidence that the audit was carried out in accordance with the basic principles. Working Papers aid in the planning and performance; supervision and review; and provide evidence of the audit work performed to support the auditor’s opinion.
Enable audit priorities and categories	Enable this option to assign priorities and categories while seeking clarification from the users of the company.

Shop for Add-Ons

TallyShop is a centralised location that has a host of generic add-ons (customised programs and extensions). Add-ons are developed by authorised Tally partners and available in TallyShop. Based on your customisation needs, you can access TallyShop, search for the required solution, download and use them by paying a nominal price or subscription charges.

● Press F11 (Features) > F6 (Add-Ons).

● Alternatively, press Ctrl + S (TallyShop) to open the TallyShop screen.

Tally ERP 9 Chepter 2: Group Company

If your business consists of branches, subsidiaries, or sister companies, it can become difficult to monitor the health of your business group. You might have questions like how your business is doing overall, or how your different branches are performing. Tally.ERP 9 will help you find answers to all these questions and more. 

Definition of Branch

Branch is defined as an extension of the parent organisation, which is set up at another location, to increase their coverage. It carries out the same activities as performed by the head office. The officer-in-charge of the branch is known as the branch manager, who is directly responsible for the work of the branch, as well as reports to and take instructions from the head office.

Most of the banks and financial institutions have branches that are opened to play the agency role. Setting up branches at various remote locations, increases the customer base, accessibility and also helps in timely and effective distribution of goods and services.

Example: The head office of Reserve Bank of India is located in Mumbai, and it has 20 branches (regional offices) which are located in the capital cities.

 

Definition of Subsidiary

The term subsidiary company is a business entity, whose ownership and control is in the hands of another business enterprise. Usually, when a company buys another company, the buying company, is called as holding the company and the company so bought is the subsidiary.

A company is said to be a subsidiary of another if any of the three conditions are satisfied:

• Ownership stake: If another company owns 50% or more, the total equity share capital of the corporation.

• Composition of Board of Directors: If in a company the composition of Board of Directors (BOD) is decided by another company. The composition of BOD means that another company appoints all or majority of directors.

• Deemed Subsidiary: If a company is a subsidiary of a company, which itself is a subsidiary of another company. For instance: Gamma Ltd. is a subsidiary of Beta Ltd., and Beta Ltd. itself is a subsidiary of Alpha Ltd., then Gamma Ltd. is a deemed subsidiary of Alpha Ltd.

Example: If we talk about Reliance Industries Limited, there are various subsidiaries owned by it are: Reliance Jio Infocomm, Reliance Petroleum, Reliance Retail, and so forth

 

Definition of Sister companies

A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that belong to the same parent company are called sister companies..

You can create a group company in Tally.ERP 9 to conveniently view all your companies at one place. This group company can function as a single economic entity, where financial reports such as Balance Sheet, Profit and Loss A/c and Trial Balance are consolidated without any impact on the transactions. Irrespective of whether your branches use the same GSTIN or multiple GSTINs, your data will be seamlessly consolidated.

Using the group company, you can compare the performance of your sister companies and also keep a tab on the overall business. The consolidated data proves to be useful especially at the end of the financial year, where you can get a picture of the total income, profit, and so on. 

Create Group Company

Let us assume that you own a textile business in Guwahati (Assam) called National Enterprises, which consists of sister concerns in the neighbouring north-eastern cities of Shillong (Meghalaya) and Imphal (Manipur). The unit in Guwahati deals in fabrics, while the sister concerns in Shillong and Imphal deal in ready-made Western and ethnic clothing, respectively. You can create a group company in Tally.ERP 9 by adding your sister concerns.

However, before creating a group company, ensure that:

● The sister companies have the same Base currency symbol and Formal name . You can verify this in the Company Creation/Alteration screen.

● The sister companies have uniform books/charts of accounts. In other words, the corresponding masters/ledgers should have the same names across companies. This will help in proper consolidation of accounts and accuracy of MIS reports.
For example, if the sales ledger are named as Sales in one company and Sale in another company, it might lead to confusion and improper consolidation in the group company.

Now you can proceed to create your group company.

1. Gateway of Tally > F1 (Select Cmp), and load the required sister companies.

2. Gateway of Tally > F3 (Cmp Info) > Create Group Company .

3. In the Group Company Creation screen:

o Enter the Name of the group company along with the required details. For the purpose of correspondence, you can enter the address that is relevant for your group company.

o In the Member companies field, select the sister companies from the List of Companies .

o Accept the screen. As always, you can press Ctrl + A to save.

In the Gateway of Tally , you can see the group company (in bold) along with the sister companies. You can shut the other companies by pressing Alt + F1 , and proceed to use the group company.

Next time you open a company in Tally.ERP 9, the group company will now appear in the List of Companies .

View Consolidated Financial Data

When you create a group company, the data of financial reports such as Balance Sheet, Profit and Loss A/c and Trial Balance are consolidated without any impact on the transactions of the sister companies. Thus, you can compare the performance of your sister concerns, and effectively measure the overall health of your business. You can also submit this consolidated data to internal and external stakeholders such as company management, investors, auditors, and so on.

1. Gateway of Tally > F1 (Select Cmp), and load the group company.

2. Gateway of Tally > Balance Sheet . You can see the consolidated Balance Sheet .

3. To compare the Balance Sheet of the sister companies, press Alt + N and select Member Companies .

The Balance Sheet of individual companies appears as shown below:

4. Press Alt + F1 for a more detailed view of the Balance Sheet. You can see details of the Duties & Taxes, Closing Stock, Bank Accounts, and so on.

5. To gain a clearer business perspective, you can view the Balance Sheet of the sister companies along with the group company.

o Press Alt + C and select the group company.

o Press Enter to proceed.

Now you can compare the various components of the Balance Sheet between the sister companies and the group company. Using this consolidated information, you can gain useful business perspectives, such as which of your sister companies utilised the funds in the best way, or which company was the most profitable, and so on.

Alter Group Company

In Tally.ERP 9, you can easily add or remove a sister company, or update the contact details of your group company. You can also delete the group company if it is no longer required.

Add sister company

Let us assume that you are expanding your textile business by adding a new hosiery unit in Kohima (Nagaland). You can easily alter the group company to accommodate the new sister concern. Here's how:

1. Gateway of Tally > F1 (Select Cmp), and load the new sister company.

2. Gateway of Tally > F3 (Cmp Info) > Alter , and select the group company.

3. In the Member companies field, select the new sister company from the List of Companies .

4. Accept the screen. As always, you can press Ctrl + A to save.

The changes will be effective only after you reload the group company.

Remove sister company

Let us assume that you are selling off your business in Imphal, and you no longer need the Imphal unit in the group company. You can easily alter the group company to remove this sister concern. Here's how:

1. Gateway of Tally > F3 (Cmp Info) > Alter , and select the group company.

2. In the Member companies field, select the sister company that you want to remove, and press backspace.

3. In the empty field, select the remaining companies from the List of Companies , until you select End of List .

Note: If you have only two sister companies in the Group Company, you cannot remove any of the companies. To form a group company, you require a minimum of two companies.

4. Accept the screen. As always, you can press Ctrl + A to save.

The changes will be effective only after you reload the group company.

Delete group company

If you no longer need the group company, you can easily delete it without affecting the data of the sister companies.

1. Gateway of Tally > F3 (Cmp Info) > Alter , and select the group company.

2. In the Group Company Alteration screen, press Alt + D to delete the company.

3. Press Enter to confirm the deletion.

After you delete the group company, you can continue to use the sister companies without any hiccups.

Tally ERP 9 Chepter 1: Set Up Your Company

Maintaining your business transactions on a day-to-day basis is critical to your business. To keep a record of all your business transactions, you need to first create a company in Tally ERP 9. Through the company, you can also view and update all your transaction entries, as needed, and go through the financial reports based on the transactions that you maintain.

To create the company, just enter the company name, address and other details, such as financial year, security, and base currency information. Once you have created your company, based on your business preferences, you can use the accounting, inventory, payroll, and taxation features. You can also specify the tax registration details as applicable, such as GST, VAT, Excise, TCS, or TDS, which can be accounted for your transactions.

Security : All the business transactions that you maintain in the company remain safe. You can enable additional security options for your company to prevent unauthorised access to your transaction records.

If you have more than one user accessing your company, you can set up security for each user based on their role

You can create an account in Tally.ERP 9 for each user. Based on the user's roles, you can access to the tasks the user can perform.

Say you want to allow a data entry operator to make only transaction entries. You do no want this user to access your financial reports, such as Balance Sheet and P&L. However, you want the user to be able to do back-dated entries when needed. All of these can be done in Tally.ERP 9 by creating a user account for the data entry operator role and assigning the necessary rights.

Similarly, you can create more accounts if you want to maintain multiple users. See Security and User Profiles to know more about security rights and user roles.

Multiple companies : Do you have more than one business? If yes, you can create multiple companies in Tally.ERP 9, maintain transactions separately for each business, and also manage the returns for each company accordingly.

Group company : If you are maintaining multiple companies, you can get a consolidated view of such business reports by using the Group Company feature. Viewing the financial reports separately for each business and consolidating the accounts manually can be a tedious task.

Once you have set up your company in Tally.ERP 9 based on your business requirements, you can record and manage your day-to-day transactions, and track them - even remotely.

Topics we will learn here:

● Create Company to Maintain Business Transactions

● Alter Company to Update Company Details

● Update Financial Year to Allow Back-Dated Transaction Entries

● Set/Remove Security Settings to Ensure Authorised Access to Company

● Set Up Base Currency for Transactions

Maintain Business Transactions | Create a Company

You need to create a company to keep record of all your business transactions and view related financial reports. To create the company, just enter the company name and address and update other details, such as contact and financial year information.

1. On launching Tally.ERP 9, select Create Company .

If you already have one company open and would like to create another company, press Alt + F3 (Cmp Info) > Create Company .

 

2. Provide the Company details.

● Enter the Name , Mailing name , and Address . 

Note: By default, your company data will be saved in the location specified under Directory , which is the same as the folder where Tally.ERP 9 is installed. For more information on configuring your Directory path, refer to Data Configuration.

● Enter the State , Country , and other contact details. A sample image is shown below. These details can be printed on your invoice, if needed.  

Country and State : The Country field is prefilled depending on the country specified during installation of Tally.ERP 9. Select the country applicable to your business and then select the State . If you do not see the State or Country that your business operates from, you can create the State or Country in the application on the fly and select the same. Ensure that your base currency is appropriate.

Telephone , Mobile , and E-mail : You can configure your bills to include these contact details and print them so that your clients can contact you when needed. You can provide your website address to have it printed on your bills. Your customers can go to your website to know about your products and services in detail.  

At this point, you can press Ctrl + A to save the details and create the company. You can set up the remaining company details (steps 3 and 4 below) anytime later.

Note : The name of new union territory Dadra & Nagar Haveli and Daman & Diu is provided in Release 6.6.3 . All masters with Daman & Diu and Dadra & Nagar Haveli are automatically updated with the name of new union territory. The state/union territory name before merger is captured in State (before reorganisation) field. Retaining the pre-merger state/union territory name helps in managing transactions and tax returns from that period. 

 

3. Set up financial year details and security options.

● Financial year begins from : Tally.ERP 9 pre-fills this field based on the date settings of your computer and the Country selected in the Company Creation screen. 

For example, if your computer date is set to 11-02-2020 and the region is set to India, the financial year is pre-filled as 01-04-2019. If you update the company's country as UAE in Tally.ERP 9, keeping the computer date as is, the financial year for the company is automatically set to 01-01-2020. This is because, Tally.ERP 9 considers the computer date and the financial period applicable for the selected country and updates the Financial year beginning from field accordingly.

● Books beginning from : By default, Tally.ERP 9 fills this field with the Financial year begins from date. You can update this, as needed.

Say you started your business and have maintained all business transactions since 1-Oct-2019. You can update the Books beginning from date to 1-Oct-2019, while the financial year will be 1-Apr-2019.

● Security Control : This is optional. You can enable security features such as TallyVault and User controls for your company anytime later.  

a) TallyVault : If you do not want the company name to be displayed in Tally.ERP 9 while selecting the company, you can specify a TallyVault password for your company. This encrypts your company and therefore ensures privacy of the company data. You can access this company only if you know this password. This password cannot be retrieved, if lost.

b) User Access : You can allow authorised user access to your company by setting up a username and password for the company. Which means, next time you select the company, you will need to provide this username and password to open the company data. For different users, you can set up different user credentials for controlled access of your company. Refer to the Security Controls topic for details on managing users and access rights.

 

4. Specify the Base Currency Information . You can set up the base currency depending on the currency used in your business to record transactions. 

● Base currency symbol : Based on the Country you selected, the base currency symbol is filled with the currency applicable for that country. If your business deals with a different base currency, update this field accordingly.

● Formal name : The name of the currency specified.

● Suffix symbol to amount : In the case of certain countries, the currency symbol is placed after the numeral. For example, Yen is specified after the number as 5000 Yen.

● Add space between amount and symbol : Enable this option if you require space between amount and symbol.

● Show amount in millions : This is useful for companies, which require reporting of the financial statements in millions.

● Number of decimal places : This is set to 2, by default. However, it can be specified up to 4 places.

● Word representing amount after decimal : The name of the decimal portion of amount appears based on the country selected. For example, if India is selected as the country and Number of decimal places is entered, then paise appears by default.

● No. of decimal places for amount in words : You can specify the number of decimal places for printing the amount in words. This number should be equal to or lesser than the number specified in the field No. of decimal places for amount in words .

 

If your business includes transactions in multiple currencies, refer to the Multi-currency topic. 

 

5. Accept the Company Creation screen. As always, you can press Ctrl + A to save.

After you have created the company, in the Gateway of Tally screen, under Name of Company , the company name appears in bold.

Do you have multiple businesses to track and manage? You can create as many companies in Tally.ERP 9 and manage your business transactions in each company separately.

If you also prefer to get a consolidated view of the health of multiple businesses or submit summarised reports for auditing purpose, you can use the Group Company feature in Tally.ERP 9.

Load the company

Once you have created a company, you can load the company in one of the following ways:

Select the company

● Open Tally.ERP 9 > Select Company > and select the company from the List of Companies .

Configure Tally.ERP 9

If you wish Tally.ERP 9 to load the company whenever you open Tally.ERP 9

1. Gateway of Tally > F12 (Configure) > Data Configuration .

2. Set Load companies on startup to Yes .

3. Select companies to preload on startup : You can select one or more companies to get loaded based on your choice, when you open Tally.ERP 9 next time onwards.

For more information, see Data Configuration .

In Tally.ERP 9, you can configure the buffering time to load a company. See more...

1. Open the Tally.ini file located in the Tally folder.

2. Go to the option Load Buffering . Set this option to:

o Yes - To reduce the time take to open the reports. The company data will take a little longer to open as it considers the database of opening and closing balances of ledgers and stock items.

o No - To reduce the time taken to open the company data. The reports will take a little longer to open as the database of opening and closing balances of ledgers and stock items were not considered while opening the company data.

Update Company Details | Alter Company

If your company address, phone number, or any other contact information was not provided earlier or has changed, you can update such details in Tally.ERP 9. Any changes made to these details will be reflected accordingly in your reports and printed invoices.

1. Gateway of Tally > press Alt + F3 (Cmp Info) > Alter .

2. In the Company Alteration screen, make the necessary changes.

3. Accept the changes. As always, press Ctrl + A to save.

If you do not need the company anymore, you can delete the company as well. 

1. Gateway of Tally > Alt + F3 (Cmp Info) > Alter .

2. In the Company Alteration screen, press Alt + D . The company will be deleted permanently.

If you want to access the business transactions recorded in the company at a later time, you can take a backup of the company before you delete it. Note that once you delete the company, you cannot retrieve it, and therefore keeping a back up of the company data is recommended.

Allow Back-Dated Transaction Entries | Update Financial Year

If you have maintained your books of accounts prior to the current financial year, you can add all of the back-dated transactions to your company in Tally.ERP 9. Let us assume that you started your business in 1-Jun-2018 and have maintained your business transactions since then. However, you created a company in Tally.ERP 9 on 1-May-2019. By default, the books and financial years in Tally.ERP 9 are both set to 1-Apr-2019. To allow entries of transactions in Tally.ERP 9 starting 1-Jun-2018, you will need to update the financial year information of the company.

1. Gateway of Tally > Alt + F3 (Cmp Info) > Alter .

2. In the Company Alteration screen, update the Financial year begins from as 1-Apr-2018 and the Books beginning date as 1-Jun-2018.

3. Accept the changes. As always, press Ctrl + A to save.

You can change the Books beginning date in the Company Alteration screen anytime to make back-dated entries up to 1-Apr-2018 for the financial year 2018-2019. 

Important : In Tally.ERP 9, if the financial year and books beginning date are already set to 1-Apr-2018, and you alter the dates to 1-Apr-2019, all transactions recorded during the period 1-Apr-2018 and 31-Mar-2019 will be lost. However, if you need to maintain transactions separately from 1-Apr-2019, considering splitting your company to avoid data loss. Refer to the Splitting Company Data based on Financial Years topic for more information.

Ensure Authorised Access to Company | Set/Remove Security Settings

Security of business transactions and financial reports is critical, especially to avoid misuse or unauthorised access. Tally.ERP 9 helps you set up security for your company and change the credentials when required. Based on your business practice, you can enable the security feature by altering the company in Tally.ERP 9.

In this section

● Set/Alter Security Control

● Remove Security Control

● TallyVault

Set/Alter Security Control

1. Gateway of Tally > Alt + F3 (Cmp Info) > Alter .

2. To set the security control options.

● Set Use security control to Yes .

● Name of administrator and Password : The credentials you specify here must be entered every time you open your company.

3. Accept the changes. As always, you can press Ctrl + A to save.  

 

● Use Tally Audit features : Tally Audit allows the administrator or an auditor profile user to track changes in the accounting information.

● Disallow opening in educational mode : Set this option to Yes , if you do not want the company to be opened in the educational mode. In the educational mode, you can record transactions only on the first and last day of a month.

● On accepting the company creation screen, if you have specified TallyVault password, Tally.ERP 9 prompts you to enter the user name and password.

Once you have saved the company, you can alter the credentials anytime later. To do so:

1. Open the company by entering the Name of User and Password .

2. In Gateway of Tally > click Alt+F3 (Cmp Info) > Alter .

3. Select the company.

4. You can change the administrator name, or the password or both.

● To alter only the name of administrator:

o Security Control > enter a new Name of administrator .

o Enter the existing password in all the password fields.

● To alter only the password:

o Security Control > enter the existing Name of administrator .

o Enter a new Password , and repeat it in the Repeat Password field.

o Enter the Old password .

● To alter both the administrator name and the password

o Enter a new Name of administrator and a new Password .

o Enter the Old password .

When altering security setting, providing the old password ensures that an authorised user is attempting to alter the credentials of the company.

Remove Security Control

1. In Gateway of Tally > click Alt+F3 (Cmp Info) > Alter .

2. Select the company.

3. Set the option Use security control to No .

4. Enter the existing password in the Current/Existing Password field.

5. Accept the changes. As always, you can press Ctrl + A to save.

TallyVault

Based on your business environment, if you want to maintain privacy of the company that you have created in Tally.ERP 9, use TallyVault. Providing a TallyVault password encrypts your company and all the transaction details, including the company name. Next time you open your company, you will need to first enter this password to view the company name and other details.

TallyVault is an enhanced security system that allows encryption of your company data. Encryption involves converting normally accessible Tally information into unrecognizable information, which can only be reconverted by authorised persons.

● While creating the company in Tally.ERP 9, you can set the TallyVault password.

● If you had already set the TallyVault password and would like to alter it, use Gateway of Tally > Alt + F3 (Cmp Info) > Change TallyVault .

For more information, refer to Enable TallyVault.

Note: If you have specified credentials for security control and the TallyVault password, next time you open the company, you will need to first enter the TallyVault Password and then the security credentials.

Use Currency as Applicable for Transactions | Set Up Base Currency

Currency details for your company are pre-filled based on the country that you have selected during company creation. If your business is set up in India, the base currency is by default set to Rupees. All the transactions that you record and the reports that you view in Tally.ERP 9 will show the values in the base currency that is set for your company. If your business is set up in India but you have customers from a different country, you can specify the base currency as applicable for that country.

1. Gateway of Tally > Alt + F3 (Cmp Info) > Alter .

2. Base Currency Symbol : For example, ₹ for Rupee, AED for United Arab Emirates (UAE), and so on.

Based on the currency you choose, you can update the remaining options applicable to that currency. For example, if you have chosen AED as the base currency,

o Update the Formal name to Dirham .

o Set Suffix symbol to amount to Yes , because the AED always appears after the number (for example, 5000 AED).

Similarly, update the other options as applicable for the currency chosen.

3. Accept the changes. As always, press Ctrl + A to save.

Multi-currency : If your business has customers in more than one country or you need to maintain transactions in different currencies, you can use multiple currencies in Tally.ERP 9. For more information, refer to the Multi-currency in Tally.ERP 9 topic.