Tally PRIME
Posted by Asok K Nadhani on

Tally Prime Company creation

Tally PRIME is revamped new version of old Tally ERP9. The Tally Dashboard as well as the Data Files are different. If you have been using Tally ERP 9, then there are 2 options for you to move from ERP9 to PRIME.

  • Install Tally PRIME and migrate the old ERP 9 Companies data to PRIME data structure. Continue to use Tally PRIME only (ERP9 cannot be used any more on migrated data to PRIME)
  • Keep old ERP9 software and ERP data as it is. Install Tally PRIME in a new data Path. So, you will have both Tally ERP9 and Tally PRIME in your computer. Work with old Companies with  ERP9 and newly created with Tally PRIME

But if you open old ERP 9 Company with Tally PRIME, the ERP9 data would get converted to PRIME format and you can open that Company with PRIME only

So, while principally discussing about Tally PRIME, we will also explain Tally ERP9 for your convenience.

We now explain Data Migration form ERP9 to PRIME for old users. New users first time working with PRIME, may skip this paragraph

Data Migration from Tally ERP 9 to Tally Prime

When you load Tally PRIME, the list of Compnaies in default directory will appear. To open ERP9 company from another Path, select Specify Path (if the Company Data Path is known), or select ‘Select from Drive ’ (Company Data Path is not known) and select the Data Path. The Company Name in selected Data Path will appear.

You will find a note “Migration Required’ against the ERP 9 Company Name, indicating that data of these Company are still in ERP9 Format. Such old Tally ERP 9 data cannot be opened directly by Tally Prime. On selection of such Company Data in Tally PRIME, the Migration options will appear. The steps of Opening Old Tally ERP 9 data in Tally PRIME and migration to Tally Prime are explained next.

Old (ERP9) Company  selection in Tally PRIME  At Top Main Menu Bar, at K:Company Menu . select the ERP 9  Company (showing Migration Required) from default data directory.  Select Company from the list . All the existing Companies in the selected Data Path would be displayed. Now select the desired ERP 9 Company from the list.

Old Company Data Migration in Tally PRIME

On selection of old ERP 9 data Company from list, (indicated by Migration Required), Data Migration screen will appear.

You may optionally click C:Configure button to set up Data Migration Configuration

To keep Data Back Up of the Company before Migration, set Yes at Back Up of the Company before Migration and enter Back Up Destination Path.

Click R:Migrate Button. The ERP 9 format Data will be converted to Prime Format. If Data Back Up Configuration is specified and Back Up Company data before Migration is set to Yes, then old ERP9 Format data would be saved into the specified Back Up Path .

Key Steps:

  • Select Company in ERP Format (Migration Required) from respective folder
  • Message will prompt to convert data into PRIME format. Set Migration Configuration options
  • Old Back Up Data will be stored in the specified Back Up Data path.
  • Migrated data would be overwritten in the same data Path.

Having migrated data from old Tally ERP9 to Tally PRIME, you may proceed to work with the Company, as explained next.

Company in Tally in Tally PRIME

The Term Company in Tally Prime means an Accounting Entity, for which a separate set of Accounting Records are maintained (referred as Tally Company). So, a Tally Company may be created for Personal Accounts, Business Organization of any form (Proprietorship, Partnership, Company), Association, Trust or any entity for which a separate set of accounts are maintained.

Multiple Tally Companies for One Legal Company in Tally PRIME

So, for one legal Company, say ABC Company, several Companies may be created, if separate accounts are maintained for its different Branches, Warehouses, Factories etc, for each financial year, such as,

  • ABC Company (HO)
  • ABC Company (Patna)
  • ABC Company (HO) 20-21
  • ABC Company (Patna) 20-21

New Company creation in Tally PRIME

Company creation: To create New Company, select K:Company>Create or press Alt+F3 to get Company creation screen .

Path Specification : To set Data Path, move up to Company Data Path field (Up Arrow ↑ or press Shift +Tab keys). Now select ‘Select from Drive’ or ‘Specify Path’ from the top right side options and specify an existing Data Path where the Data of the Company being created would be stored. Before specifying the data Path, plan the organisation of Data. There is no option in Tally to change the Data path after the Company is created.

Company creation  – Quick Entry in Tally PRIME

Company Creation - Quick Entry

Company creation in Tally PRIME

Company creation screen contains many Input Data fields. It is not mandatory to enter all data at the time of Company creation. For Quick entry, you may just enter only the following basic info :

  • Name : Enter Name of the Enterprise  at the Name field. The Company is identified and selected by this Name (called Tally Company Name). To identify the Company for each Year, you may add the FY after the Company name (like ABC Company HO 20-21). So, in the next year, when you create separate Company for 21-22, you may name it like ABC Company HO 21-22, to identify Accounts of the respective year from the Company Name.
  • Mailing Name : The Company Name is carried in the next field Mailing Name. At Mailing Name, keep only the Company Legal name (which would be printed in Invoice, Receipt etc), deleting the additional portion of name (like HO 20-21 etc).
  • Financial year from: Normally you should enter Beginning Date of financial year (like 1-4-2020), to maintain accounts for full financial year. Tally initially creates Accounting period of 1 year from Financial Year from date (like 31-3-21).

Other Info: You may enter other details in respective field now, or may enter later when needed, through Company Alteration option (explained next)

Saving the created Company in Tally PRIME

After entering the particulars, to save the entered Company, either press Ctrl+A or click Yes at ‘Accept Yes No’  button at the bottom right. After Saving, a Tally Company gets created and shown in the list of Selected Companies, at the left side of GoT (Gateway of Tally). This way, you may create multiple Tally Companies and maintain separate accounting records for each of them.

The Data of the Company is referred as Company Profile.

Company Selection in Tally PRIME

To work with the desired Company from many Companies created, at Gateway of Tally (GoT), at K:Company Menu, select Select option from menu (or type Alt+F3), or select ‘Specify Path’ or ‘Select from Drive’ option and select desired folder, and then select the Company from list of Companies You may select multiple Companies one by one, from any Data path . The last selected Company appears in Bold at top, at the left side of Gateway of Tally (which becomes the Active Company to currently work with). Other selected Companies appear next in Normal font, You may easily switch from one selected Company to another

Company Selection

Gateway of Tally with Active and Selected Companies List

During Data entry / Alteration / Deletion, select only one company and work with that . Select multiple Companies only to get Comparative or Consolidated Company Reports. Do not keep multiple Companies Open. You may inadvertently enter data in wrong Company . Shut all other open Companies as explained next. Select multiple Companies to work with simultaneously

Switching between selected Companies in Tally PRIME

When multiple Companies are selected , to work with the specific selected Company, click on the desired at Selected Company at the left panel of GoT It becomes Active Company (it will now appear at top  in Bold) to work with Alternatively, at K:Company menu, select Change (or press F3) and select the desired Company

Company Modification (Company Alteration) in Tally PRIME

For any created Company, you may Alter (Modify / Edit) any data later on (except Data Path), or to fill up left out blank data of the Company Profile , as explained next.

At K:Company Menu, select Alter, select Path Name and then select the Company to be altered from the list of Companies . Now modify any data or enter unfilled data in

same way as Company creation (except Data Path) . Press Ctl+A to save.

Company Deletion in Tally PRIME

Sometimes, a Company need to be Deleted , like when a Company is Created just for Test, or the Data is moved to another place, etc, There is NO visible option for Company Deletion. Company Deletion is to be carried out through Company Alteration Option.

At K:Company tab, select Alter and select the Company to be deleted. At Company Alteration screen,  press Alt+D to Delete the Company

At the confirmation screen (Delete ? Yes / No), click Yes (or type Y) to proceed to Delete the Company data (click No if you do not want to Delete). You get another prompt ‘Are You Sure ?’. Click Yes (or type Y) to finally Delete the Company), else Type N, if you do not want to Delete.

On Deletion of the Company, the Company data Folder (all data of Company) will be permanently Deleted. You will no more get any trace of Deleted Company in Tally System!

Shutting of Company in Tally PRIME

Company Shutting is reverse process of Company Selection (means unselecting a selected Company).

Company Data Path Planning and Set up  in Tally PRIME

For Quick Start, we have explained new Company creation in the default Path, as shown in Company Data Path field. Initially, this field is skipped and cursor lands at Company Name field. You fill up the required data for new Company creation and the Company data is saved under the default Data Path as shown. This means that you maintain data of all Companies at Default Data Path.

However, you may spread  Tally Company Data over multiple Data Paths, in a planned way, for better management, security, Back Up process through Tally.

Company Features Set Up in Tally PRIME

After creation of a Company, activate the Important options and principal modules you want to work with. You should activate Financial Accounts first. Activation of other modules are optional.

At GoT, at K:Company Menu, select Features (or press F11), select the Company from the list. At Company Features screen, Set Yes at Maintain Accounts

Company Features Set Up

Tally PRIME Accounting Features set up

 In this section, we are discussing Accounts Module only. So, set No at other options. We will discuss about activation of other modules at respective places.

Company Operations in Tally prime 

Click here to play the video showing chain of key tasks about Company creation

Click here to listen Key points , blog links to Frequently Asked Questions and Job Interview Questions

Company creation – Frequently Asked Questions (Company creation  FAQ & Interview Questions)