Creating 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 Company
The Company Creation screen appears as shown:
A detailed explanation on each field is given:
Directory
The data path where you want the company to be created is
specified in the Directory field.
This field is skipped by default when you create the
company in the data path given in the Tally.INI file. If you want to change it, use
the backspace key and modify it to the path
required.
This is referred to as the Tally Anywhere concept � which is the ability to create/load companies
in separate directories. The Directory field is displayed while selecting
Select, Create, Backup, Restore and Rewrite options for a company. By default,
the cursor will skip the field, presuming that you wish to use the default data
directory for your work. You may press Backspace to give a new path and work
from there.
For example, the default Tally.ERP 9 data directory could
be C:\TALLY.ERP\DATA. You
may now wish to create a new company on C:\TALLY.ERP\PERSONAL, and some other
companies on C:\TALLY.ERP\BRANCHES. The next time, the default directory
displays C:\TALLY.ERP\DATA, and if you wish to work on the data of your
branches, press Backspace and enter C:\TALLY.ERP\BRANCHES for the directory
name. This displays the companies whose data is stored in that location in the
List of Companies. You can even give the path of a network server or any other
storage device.
Name
Enter the name of the company whose books are being opened.
If you are a professional accountant and are maintaining the books of your
clients, give the Client Company's name.
Mailing Name and Address
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, and so on.
Tally.ERP's reports print the mailing name and
address as given:
Tally.ERP 9 does NOT restrict the number of lines for
the address details. Tally.ERP 9 accommodates all the entered information and
vertically compresses the same.
Note: In the space provided for the Address details, observe the vertical
compression as compared to the Mailing Name field where there is horizontal compression.
You can specify any length for the mailing name and you
are permitted to give any number of lines for the address. The information is
completely visible.
Tally.ERP 9 handles compressed information correctly while
printing. It adjusts the reports accordingly.
Statutory compliance for
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.
State
You can select the appropriate state from the predefined
list.
PIN Code
Specify the PIN Code (Postal Index Number) of the specified
address.
Telephone
Enter the Telephone number.
Mobile No
Enter the mobile number of the company.
E-mail Address
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.
Note: Ensure that all the systems in a
network have the same date and time settings.
Currency
Currency symbol is the symbol of the base currency, that
is, the currency that will be used to maintain the books of account.
The symbol ` appears by default in case India for
India/SAARC Companies and the field is left blank for International Companies.
Note: The currency symbol changes based on the country selected
from the list for Statutory compliance for field.
Click here to
read about Indian Rupee Symbol
Conversion.
Maintain
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.
Financial Year From
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.
The stipulated period of the financial year is 12 months in
most countries. Tally.ERP 9 automatically considers 12 months from the date you
give here as the Financial Year.
For example, if you enter April 1, 2008 as the date, the
Financial Year will be from April to March ending with March 31, 2009. If you
enter October 1, 2008 as the Financial Year From then the financial year will
be from October 2008 to September 2008 ending with 30th of September every
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)
Books
Beginning From
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) but close books according
to the Financial Year as specified by you. Tally.ERP 9 provides the required
flexibility in such a case by allowing you to give the date when the books of
accounts actually began. Tally.ERP 9 will open books from this date and close
as on the last day of the Financial Year.
For example, if your company is established on August 19,
2008, the opening balances for all the accounts can be given as on August 19,
2008 even though the Financial Year given is April 1, 2008 (April to March
financial year). The company's books will begin on August 19, 2008 and close on
March 31, 2009, which ensures smooth transition to the next year.
This concept can be applied even when you are migrating to
Tally.ERP 9 from any other system or from a manual accounting system on any day
during the Financial Year. Close books in that other system on the previous day
and start books on Tally.ERP 9 from this day. You are allowed to give opening
balances of all Ledger accounts including Revenue accounts.
Tally
Vault Password
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 authorised 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.
Use Security Control?
Set this to Yes,
if you want to initiate a password-protected system to control access to
Tally.ERP 9 data. Else, set this to No.
If you opt for security control, Tally.ERP 9 offers a
comprehensive password based access control to different features of Tally.ERP
9 based on authority lists created by the Administrator. For more information
refer Data Management in Tally.ERP 9.
Assuming the Tally Vault Password and Use Security Control
is set to Yes enter the Name of Administrator, Password and Repeat in the respective fields.
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.
Disallow opening in Educational mode?
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.
On accepting the company creation screen, if you have
specified Tally Vault password, Tally.ERP 9 prompts you to
enter the Tally Vault password as appears:
Then Tally.ERP 9 prompts you to enter the Name of User and Password (if any).
After verification Tally.ERP 9 imports the latest
statutory masters. Wait till the screen shows that 100% of import is complete.
This completes the Company Creation process in Tally.ERP 9.
An explanation on the fields on the bottom of the Company
creation screen follows:
Base
Currency Information
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.
Click here to
read about Indian Rupee Symbol
Conversion.
Formal Name
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.
Number of decimal places
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.
Is Symbol Suffixed to Amounts
For countries, which specify the symbol after the amount (value) � this facility is provided. For example, Yen is specified after the amount (5000
Yen) unlike in India where the symbol is specified before the amount (Rs.5000)
Symbol for Decimal Portion
Enter the symbol
for decimal portion.
Show Amounts in Millions
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.
Put a space between Amounts and Symbol
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.
Decimal Places for Printing Amounts in Words
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.
For example, if the currency is expressed up to 3 decimal
places, the numeric to be printed in words can be restricted to 2 decimal
places.
Note: The Name of the
Company cannot be translated or transliterated but will appear in the
Language created.
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