Tally Prime Handouts 4

Tally Prime - Online
Handout 4
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Banking
Banking Module has been enhanced in Tally Prime to simplify the overall
banking experience. A separate menu Banking has been provided under Utilities
in the Gateway of Tally and the user need not go to different menus to operate
the banking related operations in Tally Prime, such as printing cheques, BRS,
printing deposit slips, printing payment advices, etc.
Features of Banking in Tally Prime are discussed here,

1. Cheque Register
2. Bank Reconciliation
Cheque Register
You can track the status of your Cheque Details in Tally Prime using Cheque
Register.
❖ It is an effective Cheque Management System
❖ It allows the creation of Multiple Cheque Book with unique ranges for
each and every Bank
❖ It helps to view and search for the details of your Cheque Book
❖ It allows to Track Cheque Status
❖ It allows to keep track of Post-Dated Cheques
Steps 1: Specify the Range of the cheque book in your Bank Account

You can view the Consolidated View of the Instrument by selecting Range
wise view of Cheques.

A particular Cheque Book can be seen in instrument wise containing the details
of each and every cheque leaf as shown above.
The Bank Account Holder can change the status of each cheque book leaf as
blank or cancelled by altering the status. For that do the following:

Bank Reconciliation
The Bank Ledger shows all the transaction with the Bank. The Pass Book or
Bank Statement maintain by the Bank should also contains these details. So
ideally, the Bank ledger and Bank statement should match.
Bank Reconciliation is the process to reconcile the apparent different between

the Bank statement and Bank ledger in Tally. There exist two mode for Bank
Reconciliation.
1. Manual Bank Reconciliation: In this process the Bank Pass Book Date is
marked into the respective voucher for reconciliation.
2. Auto Bank Reconciliation: In this process, the Bank Statement in digital
format is imported from which entries are matched by Tally Prime, and
the Bank Reconciliation is prepared.
With Reconciliation, the User can

1. Create Voucher from the Bank Reconciliation Screen itself.
2. Provide Opening BRS for Unrecorded transaction.
3. Alter the Voucher by selecting the required transaction from the Bank
reconciliation screen.
4. Filter the report to display transaction based on Amount, Bank Date,

Bank Instruments and so on.
Bank Reconciliation (Manual)
Step 1: Gateway of Tally 🡪 Banking 🡪 Bank Reconciliation and Press Enter
Alternatively, Alt + G (Go To) 🡪 Type or Select Bank Reconciliation and

press Enter
Step 2: Select the required Bank Account from the List of Bank Ledgers and
press Enter.
Marked Bank Date will change the Reconciled Value at the bottom of the
screen

Step 3: Set Allow back dated Reconciliation to Yes to enter bank dates which
are lesser than the Voucher date.
Step 4: If the reconciliation process is complete, Accept the screen (Ctrl + A).
Step 5: Press Ctrl + P to Print your Bank Reconciliation Report.
Bank Reconciliation (Auto)
Bank Reconciliation is a process that explain the difference between Bank

Balances and Organizational own Records at a point of time.
Step 1: Download the Bank Statement and save it in a separate folder.
Ensure that proper import of data in the supported format for reconciliation
of data.
Excel, MT940 or .CSV files can be imported using Alt + O (Import) in Tally
Prime
Step 2: Enable Auto Bank Reconciliation in Bank Ledger.
• Open the Bank ledger, if it already exists. Alternatively create a

Bank Ledger.
• Set the option Enable Auto Reconciliation? To Yes.
• Enable the option Set/alter auto BRS configuration? As shown

below:
The Location of Bank statements screen appears. Enter the details
as shown below:
• Enter the Location of New Bank Statements downloaded from your

Bank Account
• Enter the Location of Imported Bank statements where the output

file generated after importing the Bank statement in Tally Prime
has to be saved.
• Press enter and Accept the screen

Step 3: Auto Bank Reconciliation of the Bank Statement with Company
Books
a) Go to Gateway of Tally > Banking > Bank Reconciliation
b) Select the required ledger from the List of Bank Ledgers
c) Click Alt + O (Import) > Bank Statement to Import the Bank

Statement.
d) Select the File Name (Bank Statement downloaded from the Bank
portal) in the Import Bank Statement screen, as shown below and
Press Enter.

Step 4: Confirmation message will appear with the reconciliation status
Step 5: Press any key to view the Bank Reconciliation screen with the
reconciled and additional transactions.
Transactions not reflected in Company Books can be reconciled by clicking
R: Reconcile Unlinked

J: Create Voucher.
Job Costing
Job Costing is a form of specific order costing, which applies to a job
undertaken according to customer requirements and specifications. Tally Prime

enables the tracking of cost and revenue information like material, labour, and
overhead for a specific job down to the smallest detail.
With Job Costing Systems, a Project Manager or Accountant can keep track of
the cost of each job, maintaining data which is often more relevant to the
operations of the business.
Step 1: Enabling the Job Costing
• Press F11 > set Enable Job Costing to Yes.

If you do not see this option:
Set Show more features to Yes.
• Accept the screen. As always, you can press Ctrl + A to save.
Step 2: Use Cost Centre for Job Costing
1. Create a Cost Centre

2. In the Cost Centre Creation screen
❖ Press F12 (Configure) > set the option Set Job Costing for Cost
Centre to Yes, to display this option Set Job Costing for Cost Centre
• Set the option Use for Job costing to Yes.
3. Accept the screen
4. Press F12 to configure as required
Step 3: Godown for Job Costing
1. Create a Godown
2. In the Godown Creation screen
Select a Cost Centre under Set Job/Project for Job Costing.
If you do not see this option, press F12 (Configure) > Set Job Costing
details as Yes.

Step 4: Voucher Types alteration for Transfer of Material from one location to
another
1. Alt + G 🡪 Alter Master 🡪 Voucher Type 🡪 Stock Journal
2. Enter the Name of the class as ‘Transfer’🡪 Enter to View Voucher Type
Class Screen
3. Set Option ‘Use for Inter – Godown Transfer’ to Yes
4. Press Enter and create another Class ‘Consumption’ and Press Enter
5. Set the option ‘Use Class for Job Costing Consumption’ to Yes
6. Press Enter and Accept the screen

Step 5: Voucher Entry for Transfer and Consumption of Goods

Branch Accounting
Branch Accounting is the system of the Bookkeeping under which the Company
maintains separate accounts for each of the operating locations or branches of
the company and it is followed with the motive of increasing the transparency
and knowing the cash flow position and the financial picture of each such
location of working of the company.
Branch accounting can be done using any of the two ways
Cost Centre Class is used to predefine the allocation of Income and Expenses
to each Cost Centre can be applied during voucher entry.
To set Cost Centre Class, follow the Steps:
a. Press F11 (Features) > Ctrl + I (More Details) > Type or Select Cost
Centre Class.

In case the feature is inactive, you will be prompted to activate the Cost Centre
Class feature. Select Yes or press Y to proceed.
b. Type the Class Name, select the Categories and the respective Cost
Centre.
Specify the percentage of allocation.

Cost Class can be enabled in the Voucher by configuring the same.

Classify each Branch transaction in the voucher entry screen using the Cost
Class.
MIS Reports
Tally Prime facilitates instant generation of MIS Reports. A few types of
commonly used MIS reports, which can be generated using Tally Prime are
discussed below.
MIS Reports in Tally Prime are of three types.
⮚ Accounting Reports
⮚ Financial Reports
⮚ Inventory Reports
ACCOUNTING REPORTS
Ledger Voucher Reports
In Ledger Voucher Reports, the user can view a Ledger Account with the
corresponding voucher details.

1. Gateway of Tally > Display More Reports > Accounts
Books > Ledger and Press Enter.
Alternatively, press Alt + G (Go To) > type or select Ledger
Vouchers
2. Press Enter.
3. Select the Required Ledger.
Press F2 to Change the Period as required. The Ledger Vouchers Report

appears as shown below:
Cash/Bank Books
• The Cash Book is a record of the Receipts and Payments of Cash
The Bank Book is a record of all the Receipts and Payments made
through the Bank.
• The Cash/Bank Book in Tally Prime is a Two-in-One Report where you

can see both the Cash and the Bank transactions on the same screen, but
in separate sections.
• Gateway of Tally > Display More Reports > Account

Books > Cash/Bank Book(s).

Purchase Register
❑ This report provides a comprehensive view of the month-wise purchases
done in your business.
❑ This report helps to view the data for different periods and represent the
purchase details in different ways, based on your business needs.
❑ Press Alt + G (Go To) > type or select Purchase Register.

Alternatively, Gateway of Tally > Display More Reports > Account
Books > Purchase Register.

Sales Register
⮚ This report provides a comprehensive view of the month-wise sales done
in your business.
⮚ This report helps to the data for different periods and represents the sales
details in different ways, based on your business needs.
⮚ Press Alt + G (Go To) > Type or Select Sales Register.

Alternatively, Gateway of Tally > Display More Reports > Account
Books > Sales Register.
Bills Receivable/ Bills Payable
⮚ The Bills Outstanding Report displays the Pending Amount, Due Date
and Overdue days for all accounts maintained using the bill-wise option
for the parties.
⮚ Gateway of Tally > Display More Reports > Statement of Accounts >

Outstanding > Receivables.
Alternatively, Alt + G (Go To) > Type Bills Outstanding or Bills Receivable.
⮚ When your party makes a payment against a sale that you have recorded
earlier, you can pass a receipt entry to settle the due amount.
⮚ It is important to ensure that when you receive the payments from your
parties and your accounts settlement on time.
Bills Receivable
Bills Payables
⮚ All pending payments to your parties are outstanding payables.
⮚ Managing your Outstanding Payables Reports will help you to know the
time to time of various expenses, avoid overseeing the payments to
creditors, and to manage the cash-flow.

⮚ Gateway of Tally > Display More Reports > Statement of Accounts >
Outstanding> Payables
Alternatively, Alt + G (Go To) > Type Bills Payables Reports
Receipts and Payments Report
❖ Receipts and Payments Account is a Report of Cash and Bank

transactions recorded in a specific period.
❖ It is used along with Income and Expenditure statement in a Non-Profit

Organization.
❖ It is a consolidated Summary of Cash Book, prepared for the required

period.
❖ It starts with Opening balance of Cash and Bank, and ends with Closing
balance of Cash and Bank.
Press Alt + G (Go To) > Type or Select Receipts and Payments >and
Press Enter.

Day Book
❖ The Day Book is an Account Book in which a Day’s entries or

transactions are captured.
❖ The Day Book to view only one kind of transaction or search for any
transaction respective of the date.
❖ The user can also select multiple transactions at one click and may
cancel, delete, or remove the entries from the Day Book.
❖ The user can verify the transaction and Account for any Missing Entries
by adding, inserting, or duplicating entries.

FINANCIAL REPOTS
Trial Balance
⮚ The Trial Balance is a Summary of all the Ledger balances.
⮚ It helps in checking whether the transactions are correct and balanced.
⮚ If the Journal Entries are error-free and posted correctly to the General
Ledger, the Total of all Debit balances should be equal the Total of all
Credit Balances.
⮚ By default, the Trial Balance Report will be generated as on the date of

the last voucher entry.
Gateway of Tally > Display More Reports > Trial Balance.

Balance Sheet
❖ Balance Sheet is one of the primary Financial Statements that you can use
to monitor the health of your business.
❖ It is a picture of your Company’s Financial Position – what you own

(Assets) and what you owe (Liabilities) – at a given point of time.
❖ The difference between what you own and what you owe determines the
Net Worth (Owner’s Equity) of your business.
❖ The Balance Sheet will help you to understand the performance of your
business.
Gateway of Tally 🡪 Balance Sheet.

Profit & Loss Account
⮚ Profit and Loss A/c is one of the primary financial statements that you
can use to monitor the performance of your business.
⮚ It summarizes the revenues, costs, and expenses for a specific period,

such as a quarter or a year.
⮚ Using the Profit and Loss A/c in Tally Prime, measure the ability of your
business to generate Profit.
⮚ By default, the Profit & Loss A/c report will be generated as on the date
of the last voucher entry.
Gateway of Tally 🡪 Profit & Loss A/c.

Cash Flow
Cash Flow is the Inflow and Outflow of Cash during an Accounting period.
The Cash Flow statement summarizes the transactions that have a direct impact
on cash.
It records the inflow and outflow of Cash during a particular period, and
thereby, you can track any changes in the position of Cash.
Gateway of Tally 🡪 Display More Reports 🡪 Cash Flow.

Cash Flow Projections
❖ Cash Flow Projection is an integral part of Business Planning.
❖ It takes into account the flow of Cash and helps you to anticipate the Cash
to be generated or spent over a period of time.
Press Alt + G (Go To) > Type or Select Cash Flow Projection > Press Enter.

Fund Flow
Funds Flow statement tracks the movements of Funds during an Accounting
Period.
Funds Flow statement is represented in terms of the sources of funds and the
application of funds
The difference between the sources and application of funds shows the Net
change in the Working Capital during the period.
Funds Flow statement displays those transactions that affect the Net Working
Capital of the company.
Gateway of Tally 🡪 Display More Reports 🡪 Funds Flow

Ratio Analysis
⮚ Ratio Analysis is used to mathematically compare various Accounts or
categories in your books, such as Working Capital, Bank Balances, and so
on.
⮚ The analysis of a financial statement is made possible by the use of

financial ratios.
⮚ This comparison will help you to look at the financial position of your
business from different views.
⮚ There are number of Financial Ratios that help to various analysis, such
as Current Ratio, Debt/Equity Ratio, Gross Profit %, Quick Ratio, and so
on.
Gateway of Tally 🡪 Ratio Analysis.

INVENTORY REPORTS
Stock Summary
⮚ Stock Summary is a statement of the real-time stock-in-hand on a

particular day.
⮚ It is one of the primary Inventory statements that gets updated in

Real-Time as and when you record transactions.
⮚ Stock Summary provides information on Stock Items such as quantity,

rate, and opening and closing value of the Stock Items.
⮚ Using the Stock Summary Report, you can view the profit made from
sales of various stock items Individually or Group wise.
Gateway of Tally 🡪 Stock Summary. Alternatively, Alt + G (Go To) > Type
or Select Stock Summary and press Enter.

Stock Ageing Analysis
⮚ Stock Ageing Analysis in Tally Prime displays the age of the

Stock-in-Hand.
⮚ This report lists the Age-wise break-up of inventory to demarcate old

stock.
⮚ Ageing Analysis lists out items batch wise, that have already expired or
may expire in the near future.
⮚ This information will help you to keep a track of the Age of stock. (Quick
moving, obsolete, depreciable etc.)
Gateway of Tally > Display More Reports > Statement of

Inventory > Ageing Analysis.
Alternatively, Press Alt + G (Go To) > Type or Select Ageing Analysis > and
Press Enter

Movement Analysis
⮚ Movement Analysis shows the Analysis of only those Inventory

transactions which are integrated with the Accounts, i.e. Inventories
which are also recorded in the Books of Accounts.
⮚ Movement Analysis Report is used for comparative studies.
⮚ It also helps in finding out the slow moving items which cause blockages
in the flow of the working capital of the organization.
Gateway of Tally > Display More Reports > Statement of Inventory >
Movement Analysis > Stock Group Analysis > Select a Stock Group.
Godown/ Location Summary

⮚ Tally Prime summarizes the details of Stock Items available in each
Godown /Location Summary Report.
⮚ In this report the user can view the closing and opening balances of your
Stock, Inward and Outward Stock details, and all corresponding
transactions.
⮚ The Report also provide specific details like consumption, profit, and
overall stock position of your Company.
Gateway of Tally > Display > Statements of Inventory > Godown
Alternatively, Press Alt+G (Go To) > Type or Enter Godown Summary >
Press Enter.
Payroll
Payroll is the total of all compensation, a business must pay to its employees for
a set period of time or on a given date. Payroll can also refer to the list of
employees of a business and the amount of compensation due to each of them.
The monthly salary and wages disbursement have several key components
structured together in every payroll. Within and between Gross and Net salary,
there are several ‘Components’ that make a Salary package. These are essential

for the employers and employees to calculate Taxes, Provident Fund (PF),
Medical expenses, Benefits, Travel allowance and so on.
The Payroll feature in Tally Prime is fully integrated with accounting to

streamline payroll processing.
Payroll in Tally Prime
The Payroll feature also provides management related information, statutory

forms and reports in the prescribed formats such as:
• Pay Slip, Payroll Statements, Attendance and Overtime Registers.

• Gratuity, Provident Fund (PF), Employee State Insurance (ESI), National
Pension Scheme (NPS).
• Professional Tax (PT) and Income Tax (IT).
• Expat Reports.
Step 1: Enabling
1. Press F11 (Features) 🡪 set Maintain Payroll to Yes.
If you do not see this option:
Set Show more features to Yes.
Set Show all features to Yes.
2. Accept the screen. As always, you can Press Ctrl + A to Save.

Let’s do payroll in an order.
Step 2: Employee Master
The Employee Master in Tally Prime can be used to record all

Employee-related information.

Employee Group
1. Go to Gateway of Tally 🡪 Payroll Masters🡪 Employees 🡪 Create

2. Enter the Name of the employee
Employees
1. Go to Gateway of Tally 🡪 Payroll Masters🡪 Employees 🡪 Create

2. Enter the Name of the Employee. By default, the system displays the
same value in the Display Name in reports as
3. Modify the Display Name in reports as if required.
4. Select the Employee Group in the field Under
5. Enter the Date of Joining.
6. Set the Define Salary details? Option to Yes and press Enter to
open Salary Details Creation screen.

7. Enter Remarks, if any, in the Notes field.
8. Enter the employee General Information, Employee's Bank Details
for salary processing, Payment Details, Statutory Details Passport
& Visa Details and Contract Details.
9. Press Enter to save.
Step 3: Payroll Master
Payroll masters represent various payroll units and attendance types used
in your organization.
Unit
1. It ensure that attendance type have a common Unit to measure.

2. Payroll unit is used to calculate pay components for a given period.
Go To 🡪Create Masters 🡪 Payroll masters 🡪 Units (Works) 🡪 Press ‘Enter’

Attendance/Production type are dependent on the pay head that constitute
employee pay structure.
It can of two types:
1. Attendance/Leave with pay: Use this to record the Positive attendance

and leave with pay. Examples – Sick leave, Present
2. Leave without pay: Use this to record Negative attendance. Examples –

Absent, leave without pay, and so on
Go To 🡪 Create Master 🡪 Payroll Masters 🡪 Attendance/Production

Types 🡪 Press ‘Enter’

Step 4: Pay Head
❖ The salary components constituting an employees pay structure are Pay

Head
❖ A Pay Head may be a benefit or a deduction from the Salary.
❖ Pay Head could be fixed or Variable for each payroll period.
❖ A Pay Head Type is categorized as Earnings, Deductions or

Reimbursements.

Step 5: Salary Details
❖ Salary Structure gives us the component included in an Employees pay.
❖ Tax is calculated based on the taxable nature of each pay head included in
the salary structure of the employee.
Step to follow
1. Gateway of Tally 🡪 Alter 🡪 Define Salary.
2. Select the employee from the List of Employees
3. Enter the effective From date
4. In the Pay Head column, the Start Type list displays three options
namely, Copy from Employee, Copy from Parent Value and Start
Afresh.
5. Modify values for the necessary pay heads as per employees’ eligibility.
6. Accept the screen.

Step 6: Payroll Voucher Entry
Attendance Voucher
✔ Attendance voucher can use to enter attendance, overtime, leave or

production details.
✔ Can enter separate voucher for every day or a single voucher for a given
pay period with aggregate values.
✔ One voucher can store data on all employees

Payroll Voucher
This voucher is used to enter the Total Payment Due to each employee at the
end of a pay period.

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Tally Prime - Online

www.finprov.com [email protected] +91 75919 77659

Features of Banking in Tally Prime are discussed here,

❖ It is an effective Cheque Management System

❖ It allows to Track Cheque Status

❖ It allows to keep track of Post-Dated Cheques

www.finprov.com [email protected] +91 75919 77659

www.finprov.com [email protected] +91 75919 77659

www.finprov.com [email protected] +91 75919 77659

Bank Reconciliation is the process to reconcile the apparent different between

With Reconciliation, the User can

www.finprov.com [email protected] +91 75919 77659

2. Provide Opening BRS for Unrecorded transaction.

4. Filter the report to display transaction based on Amount, Bank Date,

Bank Reconciliation (Manual)

Step 1: Gateway of Tally 🡪 Banking 🡪 Bank Reconciliation and Press Enter

Alternatively, Alt + G (Go To) 🡪 Type or Select Bank Reconciliation and

www.finprov.com [email protected] +91 75919 77659

Step 5: Press Ctrl + P to Print your Bank Reconciliation Report.

Bank Reconciliation (Auto)

Bank Reconciliation is a process that explain the difference between Bank

Step 1: Download the Bank Statement and save it in a separate folder.

Step 2: Enable Auto Bank Reconciliation in Bank Ledger.

• Open the Bank ledger, if it already exists. Alternatively create a

• Set the option Enable Auto Reconciliation? To Yes.

• Enable the option Set/alter auto BRS configuration? As shown

• Enter the Location of New Bank Statements downloaded from your

• Enter the Location of Imported Bank statements where the output

• Press enter and Accept the screen

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a) Go to Gateway of Tally > Banking > Bank Reconciliation

b) Select the required ledger from the List of Bank Ledgers

c) Click Alt + O (Import) > Bank Statement to Import the Bank

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Transactions not reflected in Company Books can be reconciled by clicking

www.finprov.com [email protected] +91 75919 77659

www.finprov.com [email protected] +91 75919 77659

Step 1: Enabling the Job Costing

• Press F11 > set Enable Job Costing to Yes.

Set Show more features to Yes.

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

Step 2: Use Cost Centre for Job Costing

1. Create a Cost Centre

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• Set the option Use for Job costing to Yes.

3. Accept the screen

4. Press F12 to configure as required

Step 3: Godown for Job Costing

2. In the Godown Creation screen

Select a Cost Centre under Set Job/Project for Job Costing.

3. Accept the screen

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1. Alt + G 🡪 Alter Master 🡪 Voucher Type 🡪 Stock Journal

3. Set Option ‘Use for Inter – Godown Transfer’ to Yes

6. Press Enter and Accept the screen

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Branch accounting can be done using any of the two ways

To set Cost Centre Class, follow the Steps: