Additional Field Of Creating A Company In Tally

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Additional feature of Tally are:

10. Maintain: Tally displays a drop down for Type of Company with two options Accounts only and Accounts with Inventory Selected 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. Selected Accounts-With-Inventory, to maintain both financial accounts and inventory.

11. 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 automatically considers 12 month from the date 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 will be from October 2005 to September 2006 ending with 30th of September every year. Tally allows you to maintain data for multiple year 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).

12. Books Beginning From: Tally presumes that you maintain books from the beginning of the financial year. Hence, Tally displays the date given in financial year field automatically. The date of 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 Year.

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. The company's books will begin on August 19, 2005 and close on March 31, 2006, which ensures smooth stansition to the next year.

This concept can be applied even when you are migrating to Tally form any other system of 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 balance of all Ledger Accounts including Revenue Accounts.

13. Base Currency Information: The Base Currency Information is found in the bottom frame in the Company creation screen. Base Currency is the currency in which year 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.

Format Name: Format Name is the full name of the currency specified. The Formal Name of the base currency is set to Indian Rupees fo 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 places whereas certain other countries require 3 decimal places and so on.

Show Amounts in Millions: This is useful for compnies, which require reporting the financial statement in millions. This is possible only if Allow Multi-Currency is enabled in F11: Features.

Is Symbol Suffixed to Amounts: For countries, which specify the symbol after the amount - 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).

Decimal Places For Printing Amounts In Words: You can specify the number of decimal places for printing the amounts in words. This number should be equal to or lesser than the number specified in Number of Decimal places fields in company creation or currency master screen, which will appear in Invoice and Cheque printing screen.