Splitting Company Data after finalization of accounts.

Introduction
Tally’s flexible period-less accounting permits the entry of data for any number of years. This feature has tremendous benefits. The presence of voluminous old data creates unnecessary load on the system.
Splitting a financial year enables you to retain most of the benefits while overcoming this system overhead.

When you split the data, two things happen:-
1. New companies are created for the respective split periods.
2. The entire data is retained in the original company.

How to Split Company Data :

I. For Tally.ERP 9 Release 2.1 and Lower Releases (including Tally 9)

Pre-split activities
Before you split the data, ensure that:

• All adjustment forex gains/losses have been fully adjusted using Journal entries. Verify that the item “Unadjusted Forex Gains/Loss” does not appear in the balance sheet
• There are no pending purchase bills/sales bills. Check the profit and loss account and inventory statements for pending purchase/sales bills. You may account them to the respective party accounts or to the respective “bills pending” accounts.
• Ensure that all the Bank Vouchers are reconciled from Bank Reconciliation statement.
• Ensure that a Backup of the data has been taken

Procedure to Split the Financial Years

1. Go to Gateway of Tally, Select Alt+F3: Cmp Info.
2. Select Split Company Data.
3. Select the Company whose data is to be split.
4. Tally recommends the split from date based on the existing data. It is recommended that the Split Point is set as the beginning of the latest financial year, though Tally permits any date as the split point.
5. Splits occur in sets of two periods. Hence, start with the latest. For example, you need to split a company’s four years data (1-4-2008 to 31-03-2012) into four separate “companies”, each with a particular financial year. Select the beginning of the latest financial year first (1-04-2011).



6. On confirming the periods, two new companies will be created – one with data from 1-4-2008 to 31-03-2011, i.e., for three years, and the other for the period 1-4-2011 to 31-03-2012.

The historical data, for one or more financial years, will be preserved as a single company, and the current financial year, will be preserved as another company. Normally there is no reason or benefit to split the earlier years again into separate companies. If you wish to do so, repeat the steps mentioned above for the earlier period (1-4-2008 to 31-03-2009, 1-4-2009 to 31-03-2010 & 1-4-2010 to 31-3-2011).
All the companies are full companies in their own right. Data can be entered, displayed and altered. Please print the key financial reports (Trial Balance, Balance Sheet, Profit & Loss, and Stock Summary etc.) for each company for the relevant periods and compare them for accuracy.
Once you are satisfied that you have a successful split, it is advisable to take a backup of the original company and permanently delete its data from the hard-disk. This will prevent any accidental entry of fresh data into the old database.
To delete a company, press Alt+F3 at the Gateway of Tally, select a company to Alter it, and at the point where you can modify the Company Information, press Alt+D.
You will also need to alter the names of the two freshly created companies as per your requirement.

II. For Tally.ERP 9 Release 3.0 and Above

Pre-split activities
Before you split the data, ensure that:

• Verify Company Data Utility: Verify Company Data is a built-in utility which detects the possible error that occurs on data verification and provides the respective reason for the error detected. Further, it prompts the user to rectify the listed error with possible solution so that the same errors do not reoccur in future. The user has a choice to resolve these errors manually or by using the helper available.
• All adjustment forex gains/losses have been fully adjusted using Journal entries. Verify that the item “Unadjusted Forex Gains/Loss” does not appear in the balance sheet
• There are no pending purchase bills/sales bills. Check the profit and loss account and inventory statements for pending purchase/sales bills. You may account them to the respective party accounts or to the respective “bills pending” accounts.
• Ensure that a Backup of the data has been taken

Verify Company Data
To start the data verification process before splitting the data:

• Go to Gateway of Tally > F3: Cmp Info. > Split Company Data > Verify Company Data
• Select the required company



• Press enter to view the Possible Errors screen.

The Possible Errors screen is displayed as shown

Possible Error screen display the Errors, Reason for the Error

Procedure to Split the Financial Years

1. Go to Gateway of Tally, Select Alt+F3: Cmp Info.
2. Select Split Company Data.
3. Select the Company whose data is to be split.
4. Tally recommends the split-off date based on the existing data. It is recommended that the Split Point is set as the beginning of the latest financial year, though Tally permits any date as the split point.
5. Splits occur in sets of two periods. Hence, start with the latest. For example, you need to split a company’s four years data (1-4-2009 to 31-03-2012) into four separate “companies”, each with a particular financial year. Select the beginning of the latest financial year first (1-04-2011).

The Split Company Data screen displays as shown:



6. On confirming the periods, two new companies will be created – one with data from 1-4-2008 to 31-03-2011, i.e., for three years, and the other for the period 1-4-2011 to 31-03-2012.

The historical data, for one or more financial years, will be preserved as a single company, and the current financial year, will be preserved as another company. Normally there is no reason or benefit to split the earlier years again into separate companies. If you wish to do so, repeat the steps mentioned above for the earlier period (1-4-2008 to 31-03-2009, 1-4-2009 to 31-3-2010 & 1-4-2010 to 31-03-2011).

All the companies are full companies in their own right. Data can be entered, displayed and altered. Please print the key financial reports (Trial Balance, Balance Sheet, Profit & Loss, and Stock Summary etc.) for each company for the relevant periods and compare them for accuracy.

Once you are satisfied that you have a successful split, it is advisable to take a backup of the original company and permanently delete its data from the hard-disk. This will prevent any accidental entry of fresh data into the old database.

To delete a company, press Alt+F3 at the Gateway of Tally, select a company to Alter it, and at the point where you can modify the Company Information, press Alt+D.

You will also need to alter the names of the two freshly created companies as per your requirement.

The Current Financial Year is 1-4-2010 to 31-03-2011, and in the Gateway of Tally it displays the Current Period as shown:
Now if you want to create a voucher on 1-4-2011, the error message Date above current period (31-Mar-11) is displayed.

Now if you want to create a voucher on 1-4-2011, the error message Date above current period (31- Mar-11) is displayed.

Change the Current Period in the Gateway of Tally by pressing Alt + F2 Change Period 01-04-2011 to31-03-2012, and then record the vouchers for the new financial year.

It will change the Current Period information and you will be able to save vouchers for the financial year
2011-12.

Balances of the previous financial period will be carried forward without passing any closing transactions.

The Value Added Tax (VAT) is a type of indirect tax and is one of major source of revenue to the state. The VAT system was introduced in India by replacing the General Sales Tax laws of each state. Presently in India, out of 35 States and Union Territories, 32 are following this new system of Sales Taxation. The States/Union territories which are yet to implement the VAT system are Andaman and Nicobar Islands, Nagaland and Lakshadweep.

The VAT system of taxation was adopted by Indian States and Union Territories in the Year 2005 by replacing the General Sales Tax Laws with New Value Added Tax Acts and the supporting Value Added Tax Rules for proper administration and collection of Tax. Each state or union territory has its own methods to assess the tax liability and collection methods from the dealers who fall under the purview of VAT.

The Administration of VAT system was undertaken by the Commercial Taxes Department of each state along with the Excise and other indirect taxes. For easy and quick assessment of taxation and prevention of tax evasion, the department has introduced the Registration System. This Registration system of VAT helps in identifying the assessees who come under purview of VAT and are liable to collect and pay VAT. For encouraging the Registration process some benefits or concessions are given to the dealers.

The Registered dealers are allowed to collect VAT payable by them from the immediate buyer. They can claim the VAT paid on purchases made only from a registered dealer. The unregistered dealer cannot charge VAT on the invoices, so the buying dealer cannot claim the VAT amount paid as ITC. Also, the unregistered dealers are not eligible for availing concessions, for e.g., exemptions, which are given by the government.

The commercial tax department introduced a new method of levying tax called as the Composition Scheme especially after considering the small dealers whose turnover was low and were unable to maintain the records as per the requirements of VAT Act. These dealers have to pay a lump sum as VAT on the sale value of goods. The VAT paid will not be shown in the invoices. They can account for the total turnover and pay VAT on the same at the end of the return period.

For Assessing the VAT liability of dealers, each state has introduced the system of Filing Returns for different tax periods. The tax periods could be Monthly, Quarterly, Half-yearly and Annual. Each dealer has to file the Return by specifying the total turnover which is exempted as well as liable for VAT along with the purchases made and tax paid on it with the amount of VAT payable or Input tax credit carried forward within the stipulated period.

For General Tally Terminologies related to VAT Click here

The Reorder and Minimum order quantity is defined based on fixed consumption pattern.

When you select the Stock Group under the Reorder Levels menu, the Simple Reorder Levels screen will be available, by default.

Go to Gateway of Tally > Inventory Info. > Reorder Levels

Select a group of Stock Items from the List of Groups, to specify Reorder Levels for the Stock Items in the Specify Reorder Levels screen. For each item in stock, you can define a Reorder Level and the Minimum Order Quantity.

The Simple Reorder Levels screen appears as follows:

Reorder Quantity

Enter the level/quantity in the Reorder quantity field.

Minimum Order quantity

Specify the minimum order quantity required based on economical order lot predetermined.

In Simple Reorder Levels screen, the consumption alternatives will not be available and hence you have to input the only the quantities. i.e., the options that you have in the above mode are to define Reorder Quantity and Minimum Order Quantity.

If you have used Advanced Reorder options earlier, click Simple Reorder button, to specify simple reorder levels.

The options available in the Reorder Levels screen are as follows :

R : Adv Reorder

Press Alt+R to toggle to Advanced Reorder Levels screen.

M : Adv Min Qty

Press Alt+M to toggle to Advanced Minimum Order Quantity screen

Interstate Sales Against Form C

Go to Gateway of Tally > Accounting Vouchers > F8: Sales

1. Select As Invoice
2. Enter the reference in the Ref. field, if required
3. Select the Party’s A/c Name from the List of Ledger Accounts
4. Select the Sales Ledger with the VAT/Tax class –  Interstate Sales @ 2% Against Form C.
5. On selecting the Sales Ledger, the VAT/Tax Class appears accordingly. In case the VAT/Tax Class is not defined in the master, select Interstate Sales @ 2% Against Form C from the VAT/Tax Class list.
6. Select the Name of Item from the List of Items.
7. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.
8. Select the CST ledger grouped under Duties & Taxes with Type of Duty/Tax as CST and VAT/Tax Class – CST @ 2% from the List of Ledger Accounts. The amount of CST is automatically calculated on the assessable value.
9. Select Form C as Form to Receive, if applicable.



10. The Form number and Date fields will be displayed on selecting the Form to Receive from the Form Types list.
11. Enter the Form number and Date if available for the Form selected
12. Set Show Statutory Details field to No
13. Enter Narration if required



14. Press Enter to accept and save.

When we raise an invoice to our client, on which our client is requires to deduct TDS and pays the balance amount to us. The amount so deducted by our client, he is liable to pay it to the Income Tax department within first week of next month, hence its a receivable for us which we have to claim from the Income Tax Department and not from our client.

Now, we will see how to handle this situation in Accounts and Tally ERP 9 ?

Suppose we  have issue a bill of Rs. 80000 on which Customer deducted TDS of Rs. 800 and pays you Rs. 79200 back to us. Then the entry in your books will be as under :

( This ledger should be open under the Group Loans & Advances (Asset))

The result will be that your customer a/c will be settled off and the TDS amount will be shown as receivable in the Balance sheet which we have to claim from the Income Tax department. We will get Form No. 16A From our client in this regard in support of our claim.

How to use lower deduction TDS rates for certain suppliers

By virtue of Section 197/197A an assesses can get a certificate of lower deduction from the ITO.

Such certificate will include your TAN number, Assesses PAN Number, Period of applicability, approx. billing amount to you during the period and the % of TDS by which you should deduct TDS on the same.

Let’s assume one of your supplier presents you such a certificate of lower deduction of tds at a rate of 6%, then you must deduct the same as per the certificate produced to you.

Let’s learn how to manage the same in Tally.ERP 9. Once you make the settings as per below then whenever you book the invoice of such supplier then TDS will be calculated and deducted from the bill automatically at the rates specified as per the lower Deduction certificate

1. Go to related supplier’s ledger who produced you the lower deduction certification
2. (Note : Enable “Allow ADVANCED entries in TDS Master” form F12 configuration)
3. Enable “ Is TDS Deductable”?
4. Deductee Type : select deductee type from the list
5. Use Advanced TDS Entries : Set to “Yes”
6. You will find a pop up as per below
   
7. Enable “ Set Zero/Lower Deduction”  to “Yes”
8. You will find below screen
   
9. Select the Nature of payment applicable from the pop up window list
10. Set section number (it will be shown in the lower deduction certificate
11. Mention necessary details and save it.

If you are not aware of TDS features in tally then you should referTDS help file for further reference

The highlights of this release are listed below. See the complete release notes here.

In Tally.ERP 9

Data Synchronisation
Quick Setup (Wizard)
Stock Query
Mass Emailing
Batch Vouchers Report
Multi Page Excise Invoice Printing

In Tally.ERP 9 – Auditors’ Edition

Statutory Audit
Schedule VI
Data Analysis
Quick Setup (Wizard)
Auditing

Please click here for more details

New Stat.900 Version is available free for existing Tally User
Major Enhancemnet are :
Value Added Tax :
Chandigarh : The Form VAT 20 has been provided as per the statutory requirements.
Maharashtra : The Audit Form 704 is provided as per the statutory requirement for filing of e-returns.

Issues Resolved :
Tax Deducted at Source : Details of TDS transactions recorded by selecting the Nature of Payment – Winnings From Lotteries and Crossword Puzzles (Sec 194B) are not being captured in the exported etds
text file.

For more details please click here

For Download the Stat 98 Please Click here
Leave a Comment