Tally Prime Accounting System – Core Module
In this post, we discuss about core functions of Tally Accounting System, divided in following sections:
Tally Software System Set Up: The initial tasks involve: Software Installation, License Management, Remote Users, Loading Tally & Tally Configuration,
User Interface : On installation of Tally, the Gateway of Tally, the home screen and entry point to Tally Accounting system appears. The features and functions of key components like Tally Top Menu Task Bar, Gateway of Tally Main Menu, Right Button Bar, Current Status Info, Calculator Panel, Device connectivity, etc, are explained.
Data Management : On creation of Company (set of Accounts for an organisation), data are created. This section explains information about Accounts data created by tally, like, Data Path, Back Up Data Path, Data Back Up, Data Restore, Rewrite, Data Synchronization, etc.
Security & User Rights : It is Important to control access to Data as per responsibility and work assignments. So, the users are assigned access rights to various areas and functions of the Software application. This section explains aspects of User Rights related to Administrator, User Controls, Data Alteration. It also covers tracking of User actions like Tally Audit Log and documents authentication like Digital Signature in PDF documents.
Audit Trail : As per MCA directive Compnaies need to maintain records of every action of data changes. The enhanced version of Tally Audit Log provides the info about changed records, like User Id, Timestamp, record reference, Filtered list of latest records, etc. However, it does not keep the Deleted records and records altered before alteration.
User Support : Users need instant info about operations, explanation, support etc. on any topic. This section explains the elaborate info available in Tally On line Help, Latest software Updates and Upgrades, Add On Modules, Trouble Shooting etc.
TDL Management : Though Tally provides numerous features which would fulfil almost all common requirements of general users. However, third party developers have created numerous add on Modules (developed on TDL), which can be integrated with Tally licensed Tally Software to enhance the functionalities, as per their needs. This section explains how to install and manage TDL based add on products.
System Info : Key technical information about the Tally installed software and about the computer system in which Tally is installed may be viewed instantly from the Tally Software.
Tally Prime Initial Set Up
The initial tasks involve Software Installation, Loading Tally Educational Version, Tally Configuration, Remote Users of Tally.
Download and Installation of Tally Accounting Software :
Tally Prime Software may be downloaded from the Tally website (tallysolutions.com). Download the setup.exe file from the Website, in specified folder (normally in Download folder). Click on the setup.exe file and enter the desired info at Install Application screen.
For first time installation, Click New. Click Install to Install the Software. Configure the Tally Application as needed.
License Management of Tally Accounting Software
- License Management of Tally Accounting Software: On Download, you may work directly with tally, Free of Cost, in Educational Mode, without activating License. Most of the functionalities are available in FREE Educational module for Learning and practice with Tally with Live data. There are some restrictions for entry of Date. So, Educational Module is extensively used for Self Learning. It is also used by Managers to view report from their own Computer, without using Licensed version.
- Silver Single User Tally Accounting Software: Single User version cones at low Licensing Fees. This is used for Business Accounting, suitable for Small and Medium organisation. In Single user, only one person can work at a time. However, any number of persons may work in rotation. So, by proper planning, it is possible to maintain Accounts of a medium sized organisation with about 6-8 users, get instant updated reports from anywhere, as described in this book.
- Tally Gold Multi User: Multi-user gold edition, offers additional facilities than Single User, by allowing multiple users work through a connected Local Area Network. The license fee is much higher. So, it is normally larger organizations with multiple departments. However, the performance may degrade (system gets slower to respond) as the number of users access the system at a time.
- Tally Accounting Software Server: It Offers powerful data server capabilities over the Gold license, with some additional security and monitoring controls, offering better performance even with
Tally Accounting Software Free Educational Module Loading: Having installed the Software, Educational Version of Software may be directly loaded without going through any Licensing process.
Tally Accounting Software Configuration: Tally offers various types of Configuration options at different levels. On Installation, the default Tally Software Configuration options of are initially auto set. The default configuration may be changed as per users requirements. It is recommended that Tally Software Configuration options are set before creation of any Company. These configuration options will be applicable to all organisation data (Company) created by the Tally Software in the Computer System. All Configuration options set for each organisation (Company) would be applicable for the respective organisation (Company) only.
On installation of Tally, the Gateway of Tally, the home screen and entry point to Tally Accounting system appears. The features and functions of key components like Tally Top Menu Task Bar, Gateway of Tally Main Menu, Right Button Bar, Current Status Info, Calculator Panel, Device connectivity, etc, are explained.
Gateway (GoT) of Tally Accounting System
Gateway of Tally (GoT), the Home page of Tally, is the entry of point from where all tasks can be initiated and performed.
Top menu Bar : At the top of GoT, you see a top horizontal Menu Bar with several Menu tabs with multiple options. These meu Tabs contains options for core tasks, like Opening, Closing and switching between Companies; Company Features Set Up, Users and Security Set Up; Remote connection through browser, Data Management tasks like Data Back Up & data Restore, Data Path set up; Data Back Up Path set up; Data Synchronisation; Data Exchange between other Tally Systems, Switch between various tasks in Tally, Tally Data Path set up, Import Data from External sources into and Export of Tally data into standard formats for import into other Systems, email Tally reports, various Tally Info, Tally Help etc.
The Top Menu Bar Tabs remain accessible and visible all the time while working.
Gateway of Tally Main Area : Just below the Top Bar Menu of Tabs, the Gateway of Tally area is divided into following parts.
- Current Status : Left Part is about the Current status (Current Period, Current Date, currently Active & Selected Companies.
- Tally Main Menu : Right part shows the current Tally Main Menu. The Main Menu becomes invisible on exploding a Tab in Top Menu bar.
On selection of any option at Main menu, the selected next level Sub Menu and finally the selected task screen / Report appears.
- Vertical Button Bar : At the right part, vertical button bar appears, which keeps changing according to the current screen.
The default Current Date & Current Period can be set only at GoT, and is shown at top, in left part of GoT.
- Current Date : The Current Date may be re-set in Voucher Entry (through F2: Date option), which becomes the default Voucher Date for the current Voucher Entry session only.
- Current Period: Current Periodset at GoT through Change Period (F2:Period) applies by default to all parts of Tally. It is shown in left part of GoT Main Menu.
Though the default Current Period is shown in Report display screen, it is not shown in Voucher entry screen. So, you may get unexpected error message, if the Voucher Date is beyond the default Current Date. There should be option to display current period in Voucher entry screen, at the top.
Tally Calculator : Tally provides handy internal Calculator, to perform quick arithmetic Calculation. The Calculation data may be typed, copied from external sources and pasted into the Calculator panel for calculation, and the result may be auto carried into numeric input field, or pasted into external media.
The history of past calculation performed in the Calculator, remain accessible till the end of session, for re use and reference. Useful handy assistance for quick and correct work.
Tally Calculator can perform simple arithmetic Calculation only, special functions (like logarithmic, exponential etc) are not available. So, Important business computations like Depreciation, Interest, Present & Future Value, Annuity etc cannot be performed. It would have been better if fully functional calculator offering all sorts of Business Functions and Formula could be invoked form Tally Calculator command.
Printing Reports with Tally Accounting Software : Any Report may be directly printed on the currently installed Printer. The rich and versatile native facilities available in the respective printer cannot be availed and used. So, many native printer features are not available in Tally. You set up all Print Configuration, as provided in Tally.
Nowadays, people hardly print reports in Printer. Commonly they prefer to save in PDF and then print, email, WhatsApp the reports. However, saving report in PDF / Excel is not directly available in Print, but requires lengthy additional process. A button for Saving current Report in PDF would be useful just like Print & email from within Print / Print Preview. Like email, option should be provided to send report through WhatsApp, which is most popular and handy means of quickly reading communication.
Reports may be optionally previewed while printing / instantly printed / emailed, as desired.
Emailing Tally Reports Tally Accounting Software: Tally Reports (in formats like PDF, XLS, may be directly emailed to specified e mail recipients. The email id may be saved and used avoiding entry each time. No server set up is required for emailing through gmail, yahoomail or hot mail. For other email servers, Server Set up is required.
Reports may be sent from your regular gmail account. This requires authentication of gmail account with Tally. You need to generate and set App Password for sending Tally reports emails through gmail account.
Warning message may appear if the set up or email process is not proper.
Reports may be directly emailed through Print Preview option
However, like e-mail, Reports cannot be sent by WhatsApp directly for Tally. Nowadays, WhatsApp is often preferred than email. This useful feature is absent in tally.
Tally Accounting Data Management
On creation of Company (set of Accounts for an organisation), data are created. This section explains information about Accounts data created by tally, like, Data Path, Back Up Data Path, Data Back Up, Data Restore, Rewrite, Data Synchronization, etc.
For users of earlier version of Tally (like Tally ERP 9), data needs to be migrated first into Tally Prime version.
Data Migration from Old Version to New Version of Tally Accounting Software : If you were using Tally ERP 9 or older version, then the Company data cannot be opened by tally Prime. You have to Migrate Data from older version to Tally prime . The migrated data can be opened by Tally Prime only. The Older data can be opened by Tally ERP 9 only. So, keep the Tally ERP9 software also installed in the Computer so that you can view previous year Data through Tally ERP 9.
Data Back Up and Data Restore in Tally Accounting Software: Data is valuable. Computer is a machine, which may malfunction, stop working, or Data may get damaged and destroyed. So, a copy of each Company data set (Company Data Folder) should be kept in a safe secured external media (called Data Back Up). Tally names the Company data Folder as Company Numbers. If Data is kept in multiple Data path, multiple Data Folders will be created for different companies with same folder number. So, Data Folder should be named properly to identify the Company & Financial Year it is associated to.
When the current data is damaged and the Company cannot be opened, the last good Back Data is restored and overwritten on the currently damaged working data, You may then start working with Restored Data, as usual.
Limitations of Data Restore in Tally Accounting Software : However, on Data Restore, you will get the status of last Backed up Data, losing the data updated after last back Up. You have to re-do all the entry / alteration work done after last Back Up. Check the summary reports. If there is any inconsistency, check the detailed data and make proper rectification in the current Data Base. So, it is quite difficult to bring the data base in updated status. If Back dated Data is entered / altered, it would be quite difficult to trace all the activities done after the last back up till date and correctly repeat them the Data in correct updated status.
Auto back would bring back the updated Data instantly. But in Tally Prime, Auto Back can be scheduled in Tally Server only, which perform automatic data back up instantly, in the background. So, the Back Up Data remain updated as per current data.
Data Repair in Tally Accounting Software: Sometimes Tally Data may get internally corrupted. Consequently, the Company may not open properly (sometime a message ‘Repair Required’ may be displayed). This may happen when company created in Older version is opened in newer version, or data is migrated from Tally ERP 9 to Tally Prime. Sometimes, Data may get damaged due to other reasons also. Such internal data inconsistency may be resolved through Data Repair tool. Remember, Data Repair tool can only resolve inconsistency in Data. If there is severe damage in data, Company may not open even after data repair, Data is to be restored from Back Up.
Data Synchronisation in Tally Accounting System: Using Data Synchronisation tools, Tally data can be transferred and synchronized between connected multiple locations (e.g Head Office, Branch, Warehouse, Factory etc). The Data Synchronisation rules an be saved for quick error free work.
On-Line Help of Tally Accounting System : Tally provides on line help accessible within Tally. Tally Help loads a huge on line document of official and authentic info about Tally, organised into broad topics. You need to drill down through various topic links to get the desire info. You will be deluged in the ocean of info. To search a specific topic deep buried inside the Help is not easy.
These is a search pane at the top of Help screen, where you may type the keywords of the topic. But the search capability of Tally Help is very rudimentary. Often it does not provide precise links as per intent of the search. More often, you may get unrelated search results and may be frustrated by the time wasted to get info through Help.
Rather than Tally Help, better do Google search (or other browser), using relevant key words. You will get rich results of resources, Blogs, Videos, Images, from the NET, including results searched from the official blog site of Tally. So, searching through Browser (Google, Bing, Firefox, etc) is much better option to get relevant info, rather than Tally Help.
Release Updates of Tally Accounting software: The latest updates are also reported by Tally, for user Info. Update the software with latest release.
Software Upgrades of Tally Accounting System : Tally publishes brief info about various upgrade products (new releases) and other special Modules created by Tally.
Add-On Products of Tally Accounting System : Tally publishes brief info about various third party Add On products for special functionalities, available to user for purchase.
Trouble Shooting Guidelines of Tally Accounting System: Tally publishes common trouble shooting guidelines to resolve problems arising out of Application and Data. Resolution of Problems arising out of Application, e.g, Event Log listing the last activities, Repair / Reinstall to recreate corrupt files, re set the Configuration options to default, Delete saved Views; and resolution for Data Problems like Data Repair, data Migration to a higher version, Delete saved Views of Compnaies.
TDL Management of Tally Accounting System : The capabilities of Tally is further enhanced by using third party developed Add on Modules (developed on TDL), which can be integrated with Tally licensed Tally Software to enhance the functionalities, as per their needs.
System Info of Tally Accounting Software : Key technical information about the Tally installed software and about the computer system in which Tally is installed, are available on a single click
Accounting Operations Set up in Tally
Company creation in Tally Accounting System : On loading Tally, select the option for Educational Module, to load the Educational Version. In Tally, a set of independent data for a specific organisation is called Company. We will continue to use this term to avoid conflict and confusion, though the term may mean something else.
At first operational step, Create a Company and set up the desired options as desired, for the created Company. This is akin to creation of set of Data Files related to the Company, to capture accounting data. Thus you should create separate Company in Tally, for each organisation to maintain separate accounts. Any number of Companies may be created.
Data Storage Planning for Tally Accounting System : Organisations maintain independent set of data in respect of each organisation unit, for each Financial Year, Locations like HO & Branches, Sales & Purchase offices, Warehouse, etc. Apert from working data, back Up data are also to be maintained. The data may be retained in the current system for several Financial Years. So, the organisation must plan to organise the data set into various folders, in well structured manner, as per their needs, considering retention period of data in the system, security of data etc.
New Company Data Path Tally Accounting Software : At the time of creation of Company, you have to specify the Data Path. The Data Path cannot be changed after creation of Company. So, pre plan the Data location (data Path) before Company creation, and pre create the planned Data path through Operating System.
Data Folder Identity in Tally Accounting System: On creating a new Company, the corresponding Data Folder is created in the specified Data Path, with a unique number (called ‘Company Number’) is created. The Company Number in each Data Folder starts from 10000 and increase by 1 as and when a New Data Folder is created in the same Data Path. So, multiple Data Folder with same number may be created, if the Tally data is for different Companies are stored in different Data Folders. From the Data Folder, you cannot know the Company & Financial Year it relates to, as the Data Folder is named as 5 digit Compny Number only, without Company Name or Financial Year.
Multiple Company working in Tally Accounting System: You may open several companies at a time, switch between them to work with any Company. This is convenient to work with several Compnaies at a time, compare and compile a combined report of several Companies for comparison and consolidation of multiple company data.
Company Features set up in Tally Accounting System: After creation of data set any organisation for a specified Financial Period (called Company), set up the options to configure the system as per requirements. For each Company, options are independently set up, applicable for the related Company only.
Users of Tally Accounting System
User Access Rights & Security set up in Tally Accounting System
To protect the Accounting data from damage, unauthorised access and data alteration, access rights to Tally Accounting system may be controlled as desired.
To control access, an Administrator may be set who would control the activities and access rights of all Users. Only authorised persons, registered as User by the Administrator, would have right to operate the system within the permitted areas and actions.
For proper control of actions of persons operation Tally Software, Administrator, User Controls, Data Alteration. It also covers tracking of User actions like Tally Audit Log and documents authentication like Digital Signature in PDF documents.
Administrator of Tally Accounting System : For each Company, independent Administrator may be optionally activated. The administrator Password is set. Administrator can then create Users and control their access rights as desired.
The Administrator password may be changed or removed by the Administrator himself. Administrator Password is required only for control purpose of Users. The operations of Tally are performed by Users, not by Administrator. So, for regular work, Administrator is not involved.
Administrator password is very Important. It should be set by the Manger / Owner of the Company. Only the designated Administrator should know the Administrator password.
In Tally, there is no option (like Forgot Password) to retrieve Administrator, if the Administrator Password is lost. The work may be continued by User, but User control operations cannot be performed further. So, keep the Administrator Password secure, noted down in some Important place.
Data Operators of Tally Accounting System : The administrator creates the users, set their passwords and control the Users’ access rights.
User Action Tracking Audit Trail / Audit Log in Tally Accounting System: Manual Accounts leave some kind of human writing trails and evidence, to track the Accounting operations. In digital records may be wiped out and overwritten, leaving no trace of the historical operations.
Often organisations used this feature to manipulate accounts to their advantage, as most software freely allowed to enter any transaction at any point of time, and can change the same multiple times without any record of modification or deletion. In many cases, organisations get their accounting done after the end of the complete year, at the time of preparation or financial statement, change transactions as and when required unless such transaction is reported somewhere.
To track all data operations, it is an accepted practice by all good and secured accounting system enforce maintain an Audit Trail / Audit Log of operations. Normally such Audit trails provides system timestamp, identity of operator, in respect of each operation affecting data changes, e.g., in case of data alteration, Complete record of data before alteration, In case of data Deletion, complete record of Deleted Data.
As per directive of Ministry of Company Affairs, Accounting systems of All Compnaies (including Not for Profit Compnaies) must maintain Audit Trail of operations, in respect of all activities in books of accounts such as the creation, alteration, and deletion of all transactions recorded in accounting software. The Audit Trail must provide information of:
1. Who created the transaction and when,
2. modification made and who made the such modification,
3. What modifications are made in accounting transaction
It is clear and evident, that in case of Alteration and Deletion, the complete record of data before alteration / deletion must be available in Audit Trail.