Creating a Company involves providing basic information about the company whose
books of accounts are to be maintained in Tally.
Go to Gateway of Tally > (Alt+F3) Company Info.
> Create Company
Above is displayed an International Company Creation Screen.
Note that the State and PIN Code fields are not available.
The screen for India/SAARC would be:
A detailed explanation
on each field is given:
The data path where you
want the company to be created is specified in theDirectory 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 TallyAnywhere 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 data directory could be C:\TALLY\DATA. You may now wish to create a new company on C:\TALLY\PERSONAL, and some other companies on C:\TALLY\BRANCHES. The next time, the default directory
displays C:\TALLY\DATA, and if you wish to work on the data of your
branches, press Backspace and enter C:\TALLY\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
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 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's reports print
the mailing name and address as given:
Tally does NOT restrict
the number of lines for the address details. Tally accommodates all the entered
information and vertically compresses the same.
1. In the space
provided for the Address details, observe the vertical compression as
compared to the Mailing Name field where there is horizontal compression.
2. 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
3. Tally 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
Selecting India from the List of Countries brings up a State, Pin Code andTelephone No. field.
You can select the
appropriate state from the predefined list.
Specify the PIN Code (Postal Index Number) of the specified address.
Enter the Telephone number.
Enter the E-mail address that will be used to e-mail documents, reports
and data from Tally.
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 Rs. appears by default for India/SAARC Companies and the
field is left blank for International Companies.
Tally displays a drop
down for the Type of Company with two optionsAccounts 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
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 automatically
considers 12 months from the date you give here as the Financial Year.
For example, if you
enter April 1, 2005 as the date, the Financial Year will be from April to March
ending with March 31, 2006. If you enter October 1, 2005 as the Financial Year From then the financial year will be from October
2005 to September 2006 ending with 30th of September every year.
Tally 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 presumes that
you wish to maintain books from the beginning of the financial year. Hence,
Tally 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 provides the required flexibility in such a case by
allowing you to give the date when the books of accounts actually began. Tally
will open books from this date and close as on the last day of the Financial
For example, if your
company is established on August 19, 2005, the opening balances for all the
accounts can be given as on August 19, 2005 even though the Financial Year
given is April 1, 2005 (April to March financial year). The company's books
will begin on August 19, 2005 and close on March 31, 2006, which ensures smooth
transition to the next year.
This concept can be
applied even when you are migrating to Tally 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 from this day.
You are allowed to give opening balances of all Ledger accounts including
TallyVault 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
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 data. Else, set this to No.
If you opt for
security control, Tally offers a comprehensive password based access control to
different features of Tally based on authority lists created by the
Administrator. (The section on Security Control under Administer Tally contains details on authority lists)
Name of Administrator,
Assuming the Tally Vault Password and Use Security Control is set to Yesenter the Name of Administrator, Password and Repeat in the respective
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. It will be discussed
in greater detail under the Security Control section
in Administer Tally.
On accepting the
company creation screen, if you have specified Tally Vault password, Tally
prompts you to enter the TallyVault password as appears:
Then Tally prompts you
to enter the Name of User and Password (if any).
Tally imports the latest statutory masters. Wait till the screen shows that 100%
of import is complete.
This completes the
Company Creation process in Tally.
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 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 uses this
currency symbol in reports, wherever necessary.
Formal Name is the
of the currency specified.
The Formal Name for
the base currency is set to Indian Rupees for Indian Companies.
Number of decimal
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.
Show Amounts in
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: Features.
Is Symbol Suffixed to
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)
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 incase of cheque printing. Hence, the flexibility to
turn this option on and off as required is provided.
Symbol for Decimal
Enter the symbol for
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.
example, if the currency is expressed upto 3 decimal places, the numeric to be
printed in words can be restricted to 2 decimal places
1. In the space provided for the Address details, observe the vertical compression as compared to the Mailing Name field where there is horizontal compression.
2. 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.
3. Tally handles compressed information correctly while printing. It adjusts the reports accordingly.