Creating a Company In
Tally ERP 9
Tally ERP 9
The crucial part of Tally is to create a company (Here
company refers to any organization of entity or even a person whose books are
to be maintained in Tally.)Without creation of a company user can’t book any kinds of
transactions. So here I am to tell you that ‘How to create a company’?Creating a Company involves providing basic information
about the company whose books of accounts are to be maintained in Tally.ERP 9.
Go to Gateway of Tally > (Alt+F3) Company Info. > Create CompanyThe Company Creation screen is shown below:
Go to Gateway of Tally > (Alt+F3) Company Info. > Create CompanyThe Company Creation screen is shown below:
 |
| Fig 1: Creation of Company |
A detailed
information of each field is discussed below:
Directory
It
is the data path where you want the company to be created.
When
you create the company this field is skipped. But if you want to change it, use
the Backspace key and modify it to the path required by
you.
This
is referred to as the Tally Anywhere concept – which is the ability to
create/load companies in separate directories. You may press Backspace
to give a new path and work from there.
Enter
the name of the company whose books are to be managed. If you are a
professional accountant and are maintaining the books of your clients then give
the Client Company's name.
In
addition to the Company Name, Tally.ERP 9 provides the facility to enter the
Mailing Name field. It displays the Company Name by default. You may change it
as required, if the mailing name is different from the Company Name. The
mailing name and address details are picked up for inclusion in any report that
needs the company name and address as heading. For example: Balance Sheets,
Statement of Accounts, Ledgers, Cash Flows and so on.
Select
the Country from the List of Countries. The Statutory Features and Base
Currency Symbol are enabled in accordance with the country selected. For
example, if the accounts belong to a company in India, the base currency would
be Indian Rupees. The Base Currency will appear with respect to the Country
selected.
Selecting
India from the List of Countries brings up a State, Pin Code and
Telephone No. field.
You
can select the appropriate state from the predefined list.
PIN Code
Specify
the PIN Code (Postal Index Number) of the specified address.
Enter
the Telephone number.
Enter
the mobile number of the company.
Enter
the E-mail address that will be used to e-mail documents, reports and data from
Tally.ERP 9.
Set
this to Yes, if you want to enable the automatic backup of Tally.ERP 9
data (per company). Else, set this to No. The data backup is stored in
the data folder of the respective company. The auto backup data can be restored
by pressing Ctrl+Alt+K from Company Info menu or Gateway of
Tally.
Currency
symbol is the symbol of the base currency, that is, the currency that will be
used to maintain the books of account.
Tally.ERP
9 displays a drop down for the Type of Company with two options Accounts
only and Accounts with Inventory
Select
Accounts only if you do not have any inventory transactions (suitable
for professionals and corporate offices).
However,
at a later date (if required) you can choose to alter the information as Accounts-with-Inventory.
Select Accounts-with-Inventory, to maintain both financial accounts and
inventory.
In
most countries, the books of accounts of a company are maintained for a
stipulated period like, 12 months, 15 months, and so on. This stipulated
period is referred to as the Financial Year.
In
most countries it is 12 months. Tally.ERP 9 automatically considers 12 months
from the date you give here as the Financial Year.
Tally.ERP
9 allows you to maintain data for multiple years by changing the period (Alt+F2)
at the Gateway of Tally. In addition, you can also specify the date of actual
establishment of the company (date of incorporation).
Tally.ERP
9 presumes that you wish to maintain books from the beginning of the financial
year. Hence, Tally.ERP 9 displays the date given in Financial Year From field
automatically.
The
date for Books beginning from can be changed, in case of companies, which are incorporated
in the middle of the year. If your company is new, you can opt to start the
books of accounts from the date of actual establishment of the company (date of
incorporation). You are allowed to give opening balances of all Ledger accounts
including Revenue accounts.
Tally
Vault is an enhanced security system, which allows for encryption of the
company data. Encryption involves converting normally accessible Tally
information into unrecognisable information, which can only be reconverted by authorized
persons.
Give
a password here and repeat the same in the Repeat field. This basically results
in the creation of an encrypted company whose information is not accessible to
users other than the password holder.
PasswordStrength
indicator is available in Tally.ERP 9 from Release 4.5 onwards. Now, strength
is displayed while creating / altering passwords under Security Control, Tally
Vault, and Control Centre. Also when Password Policy is enabled, Password
Strength is indicated in the Change Password screen that appears for first time
login.
Use Tally Audit Features
Tally
Audit allows the administrator or an auditor profile user to track changes in
accounting information. If you wish to use this facility, select Yes. Tally
Audit will be available only to the administrator/auditor, through Display of
Statements of Accounts.For more information refer Data Management in Tally.ERP
9.
Set
this option to Yes, if you don't want the company to be opened in Educational
mode of Tally.ERP 9. Else, set this to No.
The Base
Currency Information is found in the bottom frame of the Company creation
Screen. Base Currency is the currency in which your accounts would be
maintained. Financial statements are prepared in the base currency by default
and these are normally required to be submitted to local statutory authorities.
The Base Currency information in Tally.ERP 9 varies with the country selected
for Statutory Compliance.
You
can record transactions and raise invoices in foreign currency; and also
maintain bank accounts or ledgers in foreign exchange, when required.
Base Currency Symbol
The currency
symbol given earlier in the Company Creation screen is displayed here
automatically.
Tally. ERP
9 uses this currency symbol in reports, wherever necessary.
Formal
Name is the full name of the currency specified.
The
Formal Name for the base currency is set to Indian Rupees for Indian Companies.
The
number of decimal places for the base currency is set to 2, by
default. However, you have the option of specifying up to 4 decimal places.
Indian currency has 2 decimal places whereas certain other countries require 3
decimal places and so on.
For
countries, which specify the symbol after the amount (value) – this
facility is provided. For example, Rs. is specified before the amount
(Rs.5000).
Enter
the symbol for decimal portion.
This
is useful for companies, which require reporting the financial statements in
millions. This is possible only if Allow Multi-Currency is enabled in F11:
Accounting Features.
This
facility is provided to users who require a space between the amount and
the symbol. However, putting a space between the amount and symbol could give
an opportunity for misuse in case of cheque printing. Hence, the flexibility to
turn this option on and off as required is provided.
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 Number of Decimal places field in company creation or currency master screen
which will appear in Invoice and Cheque printing screen.
