This article provides a detailed guide for Indian businesses on configuring Tally ERP 9 Release 6 for Goods and Services Tax (GST) accounting. To effectively utilize Tally for GST compliance, users must complete three primary steps: establishing a company within Tally, activating GST functionalities, and setting up essential ledgers.

This guide will cover:

• Establishing a company in Tally ERP
• Activating GST features within Tally ERP
• Creating ledgers in Tally ERP

Establishing a Company in Tally

To create a company in Tally, follow these steps:

• Navigate to Gateway of Tally > Alt + F3 > Create Company.
• Input fundamental details such as the company's name, mailing name, address, and currency symbol.
• In the 'Maintain field', select either 'Accounts Only' or 'Accounts with Inventory' according to business needs.
• The 'Financial Year from' field will default to the first day of the current financial year (e.g., 1-4-2017) but can be adjusted.
• Optionally, set a Tally Vault Password for enhanced security.
• Confirm and save by pressing 'Y' or 'Enter'.

To initiate Tally operations, double-click the Tally icon on your desktop. Access the 'Create Company' screen by selecting 'Create company' from the 'Company Info.' Menu and pressing 'Enter'.

Detailed Company Creation Fields

When setting up a new company in Tally ERP 9, the following details need to be accurately completed:

Directory: This specifies the data storage location for all Tally ERP 9 entries. By default, data is stored within the installation folder.

Name: Enter the official name of the company, e.g., XYZ INC.

Primary Mailing Details:

• Mailing name: Re-enter the company's name, e.g., XYZ INC.
• Address: Provide the company's full address.
• Country: Select the country where the business operates from the dropdown list.
• State: Choose the state to ensure compliance with local statutory laws.
• Pincode: Input the postal code for the company's location.

Contact Details:

• Phone no: Enter the company's primary contact number for invoices.
• Mobile no: Provide a mobile number for the managing person for inquiries.
• Fax No: Input the fax number for sending/receiving statements.
• E-mail: Enter the company's email address for communications.
• Website: If applicable, provide the company's web address.

Books and Financial Year Details:

• Financial year begins from: Specify the start date of the financial year for the company's creation. This is typically April 1st. For instance, if starting a company on February 1, 2025, the financial year would begin on April 1, 2024.
• Book beginning from: This is the date from which transactions will be recorded in Tally ERP 9. If a company incorporates mid-financial year, this date will be the incorporation date (e.g., February 1, 2025). For subsequent years, it will be April 1st of that financial year.

Note: For companies migrating from manual accounting mid-year (e.g., April 1, 2024 – March 31, 2025, migrating on October 1, 2024), 'Financial Year Beginning From' remains April 1, 2024, while 'Books Beginning From' is October 1, 2024. Transactions before this date are managed manually.

Security Control:

• Tally Vault password (if any): This optional field encrypts company data, preventing unauthorized access. A password strength indicator helps create a robust password. Caution: Losing this password will make data inaccessible.
• Use security control: Activating this feature enables comprehensive data control, allowing administrators to assign specific user roles (e.g., data entry operators, billing clerks, financial managers) with restricted access. The administrator name and password will be required.

Base Currency Information:

• Base currency symbol: This is automatically selected based on the country entered.
• Formal name: The official name of the selected currency.
• Suffix symbol to amount?: Determines if the currency symbol appears after the amount (e.g., 4,500 Rs.).
• Add space between amount and symbol?: Controls spacing between the symbol and amount (e.g., Rs. 4,500 vs. Rs.4,500).
• Show amount in millions?: If set to 'Yes', amounts in reports like the Balance Sheet will be displayed in millions (e.g., 100,00,000 as 10).
• Number of decimal places: Typically set to 2 for sub-units like Paisa (India) or Cents (USA).
• Word representing the amount after decimal: Defines the formal name for the decimal portion (e.g., Paisa for Indian currency, cents for USD).
• Number of decimal places for the amount in words: Specifies how many decimal places are spelled out when printing amounts (e.g., 75 Paisa prints as "}