Tally Prime is the latest version of Tally ERP (Enterprise Resource Planning) software. Its predecessor Tally.ERP9 was the most downloaded and is still one of the most popular accounting software in Nepal. Tally is an accounting program that allows us to manage and record sales, purchases, stock, receipts payments, and every financial transaction in our business. It is also widely known for its report generation capabilities. You can download and use the educational version for free in Nepal. Learning Tally Prime is extremely easy since it is super user-friendly and easily accessible.
Now, let’s learn how to set up and start using Tally Prime on our computer.
Setting Up Tally
1. Installing Tally Prime
Tally Prime can be purchased and downloaded from the Tally website, i.e. www.tallysolutions.com. One thing to note down here is that Tally Prime works on Windows computers only. For learning this software, you can use Educational Mode which allows you to use the software without purchasing its license. However, features like date manipulation are barred in Educational Mode.
2. Starting with Tally Prime
Tally Prime can be best practiced with the help of a computer keyboard. Almost everything can be accessed and selected with the help of a keyboard. But you can also use mouse or keyboard shortcuts for its functions. These shortcuts are shown on almost all the screens which makes this software extremely user-friendly. To become more efficient in the long run, we suggest you use a keyboard & its shortcuts rather than using a mouse.
3. Creating a Company
To start entering your data, you need to create at least one company in Tally Prime. Creating a company is extremely easy when you download it for the first time. In the starting menu, you can find the “Create Company” option, which once selected lets you enter further details of that company. In general, you have to:
- Enter your company’s official name
- Enter other basic details like address, phone number, e-mail, website, etc.
- Choose your currency (Npr in the case of Nepal)
- Enter the start of the financial year applicable to your company and the start date for the books. (Usually Shrawan 1st in Nepal)
- Mention whether your company would like to record only accounting entries or it deals with stock details too
4. Understanding Masters in Tally Prime
You can find two types of masters in Tally Prime; Accounting Master and Inventory Master. These masters are the lifeline of Tally Prime. Before making any entries, you need to determine the accounts to be debited and credited as well as input & output stock details.
Accounting & Inventory masters include groups, subgroups, ledgers, stock groups, stock categories, stock units, and stock items. Tally Prime by default provides us with several accounting groups and subgroups as well as the “Cash” and “Profit & Loss” ledger.
5. Creating a Ledger
Select “Create” in the Masters section of the gateway of Tally & click on “Ledger” under “Accounting Masters”. You need to assign a name to the ledger as well as its parent group, and opening balance at the start of the accounting period, if any.
6. Creating a Stock Item
Select “Create” in the Masters section of the gateway of Tally & click on “Stock Item” under “Inventory Masters”. You need to assign a name to the stock item as well as its stock group, stock category, unit name, and opening balance of stock at the start of the accounting period if any.
7. Understanding Vouchers
A voucher can be defined as a document that records a particular Financial Transaction. A separate voucher is used for each transaction and Tally Prime provides different voucher formats for sales, purchases, receipts, and so on. Most of its vouchers are pre-configured, hence it is easier for accountants.
8. Choosing the right voucher
Once you click on “Vouchers” in the “Transactions” section of the gateway of tally, you get an option to choose the relevant voucher type for your transaction. You can manually click through the mouse or use one of the below-mentioned shortcuts:
- Contra (F4) – When the money is withdrawn or deposited to the bank or any other digital wallet, a contra voucher should be used.
- Payment (F5) – Whenever a business makes payment to an outside party this voucher should be selected.
- Receipt (F6) – Whenever a business receives payment from its receivables, this voucher should be selected.
- Journal (F7) – For transactions that do not belong to Sales, Purchase, Receipt, Payment, Contra, Debit Note & Credit Note, this voucher is selected. This is mostly used for expenses and fixed assets.
- Sales (F8) – Whenever revenue is generated by the company, this voucher is selected.
- Purchase (F9) – Whenever a purchase is made by the company this voucher is selected.
- Other Vouchers (F10) – You can find Credit Notes, Debit Notes, Stock Journals, etc in this section.
9. Enter the required information
Once you select the right voucher type, you need to enter the relevant details of that particular transaction like date, amount, parties involved, stock details, and so on. Most of the sections are pre-determined by Tally itself. You should give proper care to stock entry, VAT amount, and discounts, especially during entry of purchase and sales transactions.
10. Generating the report
When you need to generate reports like balance sheets, income statements, stock summaries, ledgers, etc., in your business, you can go to the “Reports” section in the Gateway of Tally section and select the relevant report.
Learning Tally Prime with Khata Business Academy:
Tally Prime is the most common accounting software in Nepal. It is estimated that more than half of businesses in Nepal use either an older version or the latest version of Tally ERP. Since the days of manual accounting is virtually over, all accounting professionals now must learn the accounting process through software. We make your Tally learning process super easy with our interactive technology and conceptual videos. You can learn tally by not only watching the video guidelines but also practicing and interacting with them.
Our Course Content:
- Learn the fundamentals of Accounting, Financial Entries, and Reports
- Install Tally Prime Software, Create, Alter, Change, and Shut Company
- Navigate through and identify the elements of Gateway of Tally
- How to manage company accounts in Tally Prime
- Creating Accounting Masters (Groups & Ledgers) & Inventory Masters (Stock Group, Category, Item & Unit)
- Tally Accounting with VAT and TDS
- Dealing with Financial Transactions in Tally
- Generating various reports and exporting them to the required destination
- Accounting structure in Manufacturing Entities, BOM, and Stock Journal
- Using shortcuts, quick references, and configuration settings in Tally Prime
Apart from our interactive videos, we also use E-Books, Conceptual Videos, and Ready to Practice Templates for your convenience. Let’s start a journey together, practice together and achieve excellence together.
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