Company creation in TALLY ERP 9
Channel: HUNK CLASSES
Date: 2021-07-28

Introduction to company creation

The first and foremost thing to do when we start accounting with tally is to know how to create a company in Tally ERP 9. If you are operating multiple businesses, you can create several companies in Tally.ERP 9 software at a single cost.

Tally.ERP 9 has outgrown from the concept of just accounting software to managing statutory compliance by updating statutory files available at Tally solution website. Today one can operate Tally remotely using Tally.net features, process payroll and many more features are updating regularly by Tally solutions. The most recent improvement is GST) with compatibility from version Tally.ERP 9 release 6.How to create a company in Tally.ERP 9?

To create a company in Tally.ERP 9,

StepsActionsInstructions to be followedStep 1To open Tally SoftwareDouble click on tally icon from your desktop.Step 2To go to Create Company ScreenTo do this Select Create company from the Company Info. Menu using up and down arrow key and press Enter Key.Step 3To fill up the Details in Company Creation ScreenIn this company creation screen, you should enter all the details of the company that you been asked for.        

Details to be filled in company creation screen

Directory

It is nothing but the data storage location. The tally directory will store all data you entered in Tally ERP 9. Anyway, by default, the data storage will be inside the installation folder.

Name

In this field, we are required to type the name of the company, for example. XYZ INC.

Primary mailing details

Mailing name

In this field, we are required to type the name of the company, for example. XYZ INC.

Address

In this data field, we are required to enter the address of the company.

Country

Here we are required to select the country from the list in which the business Operates.

State

In this data field, we have to select the state in which we would comply with statutory laws

Pincode

Pincode of the location where the office exists.
Contact details

Phone no

Enter the Company contact number which we would like to display on Invoices
Mobile no

Enter the Contact number of Managing Person to whom any queries related to Invoicing or Delivery of product, complaint in the product could be reached to
Fax No
Enter the Fax number to which any confirmation statements, ledger copies etc., could be sent and received
E-mail
Enter the company’s email address to which any product inquiry and other communications could be made.

Website

Enter the company’s web address if any

Books and financial year details

Financial year begins from

In this data field, you have to type the financial year in which you want to create a company. Suppose you may be starting company on December 01 2018, you should enter the financial year from as 01.04.2018.

Book beginning from

In this data field, you have to type the financial year in which you want to create a company. Suppose you may be starting company on December 01 2018, you should enter the financial year from as 01.04.2018.

Starting in the middle of the financial year.

Companies which are migrating from Manual Accounting to Tally ERP 9 in the middle of the financial year.Base currency information

Base currency symbol 

In this data field, the currency symbol of the country is auto selected based on the country of origin fed by you in the previous data field. There is no need to change this data field if you are using the same currency for accounting.
Formal name
This is the formal name of the currency selected in the previous field
Suffix symbol to amount?

This data field will ask you whether currency symbol is required for example: prior to amount like $ 4,500
Add space between amount and symbol?
This data field is like $ 4,500 space in between currency symbol and amount.
Show amount in millions?
If we set this data field to Yes, Tally will display the amount in millions that are in the Balance sheet or other reports. Amount for example 100,00,000 will be shown as 10. [One million equals 10,00,000].
Number of decimal places
It is a general practice to use 2 decimal places, for example :

for using Paisa in Indian currency we use 2 decimal place.

for using cents in American dollar currency we use 2 decimal places
Word representing amount after decimal
This data field is used in printing, in Indian currency decimal portion is said to be Paisa. Set this field as per your formal name of the decimal value in your currency. For USD it is cents. Hundred cents make one dollar.
Number of decimal places for amount in wordsIf we set this data field to 1 decimal places in Indian currency, then while printing 75 Paisa.Will print as seventy 
Paisa, if we set this to 2 decimal places, then it will print the second fraction like seventy-five Paisa.