Multilingual use with Tally ERP 9

Many businesses require that their IT business solution support languages other than English. This is required for billing in localised areas, purchase orders & statements to non-English suppliers, government & other local bodies.

Several real life challenges limit the use of multiple languages: from product support, to use of the keyboard, multiple users and simultaneous use of many languages by different users for different audiences.

Tally.ERP 9 builds upon the internal languages supported by the Windows ® Operating System to deliver the Worlds only concurrent multi-lingual business solution.

Activated with a simple key combination, the current language changes for data entry, report display or during print! Data entry is eased using Transliteration capabilities, eliminating the need for the user to know how to write in that language. There is also no need to buy a regional keyboard - however there is also support for those familiar with Phonetic keyboards. Different users in a single office can set different languages as their language of choice.

The languages currently supported are Bahasa Indonesia, Bahasa Melayu, Bengali, Gujarati, Hindi, Kannada, Malayalam, Marathi, Punjabi, Tamil, Telugu and English (UK).

When extending or customising Tally.ERP 9, our partners can add specific capabilities, like printing a disclaimer or notice in a specific language.

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Multi-Budgets & Scenarios with Tally ERP 9

Budgets are a measure of the results expected for the planned activities for a company. Whether you formally plan budgets or not, you will be working against several budgets – Revenue, Production, Expense, Financial, Investment and so on.

Once these budgets are recorded, you would periodically want to check up how your business measures up against this plan. And once you get a handle on the variance, you would probably take decisions on course corrections - record possible outcomes of these changes (as scenarios) and compare against the budgets once again.

This is a powerful planning mechanism that provides the flexibility to work in a changing /dynamic environment.

With Tally.ERP 9, you can set up any number of budgets - and to make this easy, budgets can roll up into 'group' budgets and these can roll up again into 'master' budgets: the people who come up with the budgets can make entries and the roll-up is automatic (and can be overridden at the rolled up level as well).

While viewing any report, you can choose to pull up the budgeted figures as well, along with a variance column. You could just as easily pull up budget figures alone - and make these available to various people.

A 'scenario' is the name given to a specific combination of vouchers that will be included to deliver a report - you can include and exclude different voucher types and build as many scenarios as needed – say one where a product launch is on time and another where it is delayed by three months. You could then view actual figures against a scenario. You could also see the variance between a scenario and the budget!

Budgets and Scenarios are powerful tools when used by themselves; used together they deliver unprecedented power to help plan & monitor your business.

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Multi-Location Inventory with Tally ERP 9

Even the simplest of organisations will have inventory in more than one physical location. As organisations get bigger, inventory will require active 'management' with more warehouses (godowns, as we call it in India), racks & shelves and stocks at project locations.

Take the case of multiple sales outlets, each with one godown. Each purchases items at different prices and sells them over time. You need to take a call on the value of stocks at each of these outlets as if they were independent units - and not apply the company average. With Tally.ERP 9, each outlet will act as an independent unit from a costing perspective. Sales from each outlet will reflect the appropriate cost, and not the company average (which can skew profitability of both outlets).

Seen at the company level, the cost behavior ignores these godowns - making reports and financial analysis appropriate at that level.

Godowns can contain godowns - to allow management to the bin level.

For various jobs (projects) and sub-jobs, the use of godowns and cost centres in Tally.ERP 9 give a high level of reporting and analysis - on inventory and financial aspects of jobs.

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Multi units uses in Tally ERP 9

Most businesses will use several units of measure, even if the belief that just one (pieces) is used.

Take purchases - you could order in the units you are comfortable with, and you receive goods in a different unit - for e.g., order in Pcs, receive in KG's. Similarly you could record sales in the units that your customer is comfortable with. The flexibility of this 'compound' unit of measures is to ensure that Tally.ERP 9 does not get in the way of your way of working. Like in the case of multi-currency, every quantity field is inherently multi-unit ready.

Some commodities, say cotton, have 'peculiar' problems - the unit of stock used for this commodity is 'bales', yet trade is in Kg's. With changes in weather, cotton looses or gains weight due to changes in moisture content. If you used Kg's for your records, you would loose the ability to manage stock count and stock take of bales; if you used bales, you would have a mismatch in the actual quantity transacted. This problem is compounded in real life – since each bale carries a different weight of cotton.

With Tally.ERP 9 you can manage all these, with the support for multiple units of measure. Now, you can record both units in transactions – Kg's and bales at the same time. Stock valuation will be done in Kg's; inventory count can be managed in bales!

You receive some supplies - the Invoice shows 5 Pcs. and the actual count shows 6 Pcs.! Were you to enter your receipt as 6 Pcs., there will be a mismatch with the voucher and physical document which will result in an audit objection. Entering as 5 Pcs. would mean that one piece is not recorded... Tally.ERP 9 supports 'actual' and 'billed' quantities - thus delinking the inventory count from the financial impact of the transaction. With this you can also receive and deliver free samples and manage the many variations that occur now and then.

Therefore compound units, alternate units and billed/actual quantities should deliver the capabilities needed for most, if not all, of your requirements.

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Use of Multiple Currencies in Tally ERP 9

As a business transacting in multiple currencies, you will appreciate the effortless usability of Tally.ERP in this area.

Say, you make purchases from a supplier, and transact in a currency different (say $) from that of your base currency (say INR). You’d like to keep track of the dollars due, as well as the $ amounts due for each bill. This way you get to know your foreign currency requirements as well as cross check the accounts in $.

At the same time you would want to see outstanding and other financial reports in INR. Since this figure depends on the exchange rate as on the date of the report, generating these are time consuming. With Tally.ERP 9 all reports are generated automatically - all that is needed is that the forex rates be available for reference.

Foreign exchange gain & loss entries are 'posted' automatically (as a notional entry), whenever any report is taken. The day you decide to make these entries regular (say end of the financial year) you can post the required accounting Journal (with software assistance).

Importers and exporters maintain bank, customer & other accounts in foreign currencies (like the example of the supplier) - you can maintain these in any currency required.

As a branch or subsidiary of a foreign entity, or for reporting, you may need to generate reports in a currency other than the base, at some exchange rate. This capability is available across all reports.

You may need to compare companies having different base currencies - switch one company to use the currency of the other, or switch them both to a third!

Basically, every amount field in a Tally.ERP 9 voucher is multi-currency enabled. This allows you to conduct business in ways that manual systems permit and most IT systems fail to provide. It is possible for a supplier to, say, send a quote for items in INR, some in US$ and some in €.

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Multi Cost or Profit with Tally ERP 9

Cost (also called Profit) centres are organisational or budgetary units. Amounts are allocated to these centres for additional requirements of reporting, budget and control...

First a simple example - the monthly electricity bill needs to be allotted to three different units in some proportion, while the total wages need to be allotted differently - all this, so that you can get to keep tabs on the expenses for each unit for office expenses. These three units are the cost centres - and in Tally.ERP 9 you can also set up budgets for them.

A more 'complex', yet practical example would be the need to allot an expense to more than one set of cost centres. Let's say you buy vehicle insurance for several vehicles and need to allot these to:

• Different business units which use these vehicles - to record expenses against these units
• The vehicles themselves - to record the moneys spent on each vehicle
• The class of uses - to record the amounts against vehicles for people movement and material movement

The above three become cost categories in Tally.ERP 9, and there is support to record all these in the same voucher - without the need for additional entries and journals. With this you need to maintain only one accounting ledger - 'Vehicle Insurance A/c' and have the ability to monitor expenses by business units, vehicles and class of use.

Often, the proportion of allocation is known in advance. This can be easily setup and applied to a voucher - and the allocation is automated - especially useful for projects and structured businesses.

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Financial Periods with Tally ERP 9

A 'financial year' is truly suited to business reporting and statutory needs. In reality, business spans across financial years, so ‘real needs’ get constrained by these financial periods.

As an example, receivables (Sundry Debtors) is an area that is frequently plagued by 'confusion' - the need to send reminders, resend statements of accounts and persistent follow up - may require that you need to look at figures from date 'x' to date ‘y’ - and one or more financial periods can be between these two dates. With Tally.ERP 9, you can specify any date range and perform any operation that you need to.

Comparison of Periods, say Q2 this year vs. Q2 last year, often required for shareholder and statutory reporting are easily accomplished.

You may also need to break up periods into smaller chunks, instead of the 'year'. While looking at the reports, you can instantly view them broken into periods of your choice (daily, monthly, quarterly etc). For studying trends, locating unusual figures, or comparing activities for different periods, this is invaluable.

Take the case of budgets. Say for a five year long project - and for various ledgers you need to have a budget set up for five years, another for each year, another two that are 2 ½ years... you can setup such budgets, and compare budget vs. actual for any!

In effect you can 'zoom out' as well as 'zoom in' to any period of your choice.

Any changes made or a transaction inserted anytime, are instantly carried forward - no matter how far back these are made (from a security standpoint, you might need to restrict data entry or changes to transactions prior to a specific date - this is available via the User security control features).

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How to configure Multi-company in Tally ERP 9

A set of account books represents a 'company' in Tally.ERP 9. Therefore, if you decide to maintain your personal accounts you would create a 'company'. Many businesses do have more than one legal entity - and so will require multi-company support. Since each company is a distinct 'data base', building technical support for this is not difficult.

However, with multiple companies, several needs often arise beyond the mere facility to record transactions that need to be addressed,.

Principally, you would like to look at consolidated reports since these are often more meaningful to you than statutory reports of each company individually. You can therefore 'group' companies and have the reporting ability as if this were a 'company'. You could also 'group' these on demand or as required. So Partner A, could group companies in which he is a partner (say Companies P, Q & R) and Partner B could have a group with Companies Q, R & Y.

With multiple companies, you would probably need to compare them to see relative figures. In Tally.ERP 9, while seeing a report for Company P, you could pull up another column alongside that shows figures from Company Q (and any more companies). You can now continue to drill down the report and continue to see these comparisons.

Quiet often with multiple companies, the need arises to create the same ledgers & post transactions to more than one company. This can be accomplished with the click of a few keys - you save immense time by not having to re-enter data and avoid data entry errors.

In special circumstances, where there are needs like a Purchase Order entry becoming a Sales Order in another company, our Service Partners will be able to work with you, understand specific requirements and build a solution around the Data Synchronisation capability.

Security:
With multiple companies, possibly including personal accounts, you may need to control who gets access to which companies, and to do what. You can set up users, grant or deny access - and these are defined for each company.

Remote Access:
You choose to specify which company is accessible remotely. You choose which remote users have access; you decide what access a remote user gets.

Central User Management:
Users come and go. You might also have a password policy requiring users to change passwords every few weeks. You can take advantage of the ease of central user and password management that Tally.NET identities carry - and even remotely manage these while not in office.

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How to Configure Income Tax in Tally ERP 9

Income Tax Configuration is a simple and one time process in Tally.ERP 9.

To configure Income Tax,

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

Note : 

The Payroll and Payroll Statutory features should be enabled in Tally.ERP 9, before

configuring the Income Tax.

1. Set the option Set/Alter Payroll Statutory Details to Yes 

2. Under Income Tax section,

• Specify your Company’s TAN in the Tax Assessment Number field
• Specify the Income Tax ward details in the Income Tax Circle/Ward field
• Select the required Deductor Type based on the type of organisation from the List of Company Type
• Specify the name of person who is responsible for deducting Income Tax in Name of Person responsible field
• Specify the fathers name for the person responsible for deducting Income Tax in Son/daughter of field
• In Designation field specify the formal designation of the person responsible for deducting Income Tax.

Tips

• Tax Assessment Number: The Tax Assessment Number (TAN) is a 10-digit
• alphanumeric number, issued by the Income Tax Department (ITD) to the collectors.
• Income Tax Circle / Ward: This will be provided by the IT department.
• Deductor Type: Deductor Type should be selected based on the Nature of
• Organisation from Government and Others.

The completed Payroll Statutory Details screen appears as shown:

3. Press Enter accept and save.

• Once the Income Tax is configured, the new menu options will be available under the Payroll Masters and Payroll Reports to configure Income Tax and to check the respective reports.

Related Post

How to Configure Income Tax in Tally ERP 9

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Basics of The Income Tax Return

Income Tax refers to the tax that is levied on the personal or business income as per the Income Tax Act, 1961. The Tax which is levied on the Business Income for a firm or a corporate is referred as Corporate Tax and will not be dealt in this book. This book covers the personal income which is received as salary or professional fees. In particular, this book deals with the Income that originates from Salaries. To understand the Income Tax Act, it is important for you to understand the basic terms used in the Act which are described one by one.

Assessment Year

As per section 2(9) of Income Tax Act, 1961, the Assessment Year means the period of twelve months commencing on the 1st day of April every year and ending on 31st March of the next year.

e.g. for 2010-11, the assessment year will be from 1st April 2010 to 31st March 2011 for the

Financial Year 2009-2010.

Previous Year

Previous year refers to the Financial Year immediately preceding to the Assessment Year. e.g. for 2010-2011, the Previous year will be from 1st April 2009 to 31st March 2010.

Assessee

As per Income Tax Act 1961 (Act no. 43), an assessee is a person by whom any tax or any other sum of money is payable under this Act, which includes:

• every person in respect of whom any proceeding under this Act has been taken for the assessment of his income 25[or assessment of fringe benefits] or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person
• every person who is deemed to be an assessee under any provision of this Act
• every person who is deemed to be an assessee in default under any provision of this Act

Person

As per Income Tax Act, the person includes:

• an individual
• a Hindu Undivided family
• a Company or organisation
• a firm
• an association of persons or a body of individuals
• a local authority

Total Income

i. Total Income for Resident

As per the provisions of Income Tax Act, the total income of any previous year of a person who is an Indian resident includes all income from whatever source derived which:

• is received or is deemed to be received in India in such year by or on behalf of such person
• accrues or arises or is deemed to accrue or arise to him in India during such year
• accrues or arises to him outside India during such year

Provided that, in the case of a person not ordinarily resident in India within the meaning of subsection (6) of section 6, the income which accrues or arises to him outside India shall not be so included unless it is derived from a business controlled in or a profession set up in India.

ii. For Non Resident Indian

As per the provisions of Income Tax Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which:

• is received or is deemed to be received in India in such year by or on behalf of such person
• accrues or arises or is deemed to accrue or arise to him in India during such year.

Gross Total Income

Total income computed in accordance with the provision of the Income Tax Act before making any deduction under Chapter VIA. Gross Total Income or Gross Salary includes the following:

• Salary as per provisions contained in Section 17(1): Includes all earning pay components.
• Value of Perquisites u/s 17(2) (as per Form 12BA): Includes all perquisites (Non-Monetary Benefits) values paid to the employees.
• Profits in lieu of Salary u/s 17(3) (as per Form 12BA): Includes Any compensation paid to the employees in connection with termination, modification of terms of employment, amount paid prior to employment etc.

Allowances exempted U/s 10

Following are the allowances which are exempted U/s 10 of Income Tax from the Gross Salary for the Computation of Income Tax:

• Allowance provided to the Employees working in transport system
• Border Remote area allowance
• Children education allowance (for a maximum of two children)
• Children Hostel Expenditure Allowance (for a maximum of two children)
• Conveyance Allowance
• Counter Insurgency Allowance - provided to the members of armed forces operating in areas away from their permanent locations
• Field Area Allowance - Compensatory field area allowance provided in various areas of Arunachal Pradesh, Manipur, Nagaland, Sikkim, HP, UP and J&K.
• Gratuity - paid at the time of retirement
• High Altitude Allowance
• Highly Active Field Area Allowance
• House Rent Allowance
• Island Duty Allowance
• Leave Encashment on Retirement
• Leave Travel Allowance
• Medical Reimbursement
• Mining/Underground Allowance
• Modified Field Area Allowance
• Retrenchment Compensation - A Compensation given to workers at the time of closing down of Undertaking or transfer
• Tribal Scheduled Area Allowance
• Voluntary Retirement Allowance

Note:

For more information on eligibility criteria for each allowance type you can refer to the Income Tax web site as these keeps changing from time to time.

Deductions U/s 16

Following are allowed as deductions from the Gross Salary for the computation of Taxable income

U/s 16 of Income Tax Act:

• Entertainment Allowance - Entertainment allowance specially granted to an employee who is in receipt of Salary from Government.
• Professional Tax - Tax on Employment

Other Income Declared by Employee

The Other Income Declared by the Employee Income from House Property, Other sources if

any is added to the Gross Income for the computation of Taxable salary.

Deductions Under Chapter VI-A

Following are additional deductions allowed as deductions from the remaining salary for the computation of Taxable Income:

• Investments U/s 80C, 80CCF - all the investments such as Insurance, Mutual funds, House loan principal amount etc. are considered as eligible investment for the computation of Taxable income.
• Other expenses U/s 80D, 80DD, 80E etc.- Other expenses such as Mediclaim, Donations, payment of interest on loan for higher education etc. are allowed as other deductions for the computation of Taxable Income.

Relief U/s 89,90,91

The special reliefs granted to some employees due to the dual taxation system are also allowed as Relief U/s 89,90 and 91 and is reduced from the Taxable Income based on the type of agreement with the other country.

Taxable Income

The Net Income which is arrived after considering all eligible exemptions, investments and deductions is known as Taxable Income. The Income Tax is computed on the Net Taxable Income for each employee.

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How to Enabl Cheque Printing in Tally ERP 9

To enable Cheque Printing in Tally.ERP 9,

• Go to Gateway of Tally > F11: Accounting Features
• Set Enable Cheque Printing to Yes
• Set/Alter Cheque Printing Configuration to Yes.

The screen appears as shown.

Once the option Set/Alter Cheque Printing Configuration is activated to Yes, you will get the Company Cheque Details screen.

Company Cheque Details screen Appears as shown

Company Name on Cheque:

To print the company name on the cheque for signature purposes, mention the name of the Company (for example, ABC Company). If you do not want Tally.ERP 9 to print the name, you can leave it blank. Many banks issue cheques with your company name printed.

Name of Banks
Select the Bank from the Bank accounts list.

You will have to fill in the dimensions of the cheque. Tally.ERP 9 accepts user defined cheque dimensions. Take the banks cheque book and measure the dimensions of a cheque leaf carefully in millimeters and fill in the above form. You may need to correct it after trying out a couple of cheques so that the positioning is accurate. The placing of the cheque in the printer also determines the printing. To avoid mistakes trial could be made on photocopies of a cheque before using an actual cheque leaf.

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Value Added Tax in Tally

Did you know that you can record the VAT Payment Entry even without the V: VAT Payment button?

Yes, it is possible to make Statutory Payments with the help of a new button S: Stat Payment.

Click S: Stat Payment or press Alt+S

List of Statutory Tax types as activated in F11 Statutory Features appears

Select the Type of Duty/Tax as VAT

Set Yes to Auto Fill Statutory Payment in order to auto calculate the Output VAT directly or after setting off the Input VAT

Set Yes to Adjust Input VAT for Payment in order to adjust the Input VAT with Output VAT

Specify the period for which the VAT adjustment needs to be done

Based on the above, the values are auto filled in the Payment Voucher

Select the cash/bank account and give details in the Provide Details sub screen

Did you know that you can fill up the VAT Payment Details when altering the VAT Payment Voucher?

In the Alteration Mode of the VAT Payment entry, the Stat Payment button is disabled.

Set Yes to Provide Details in the Provide Details sub screen

Did you know that you can Auto Fill the VAT Amounts?

The VAT payable amount will be automatically calculated and displayed in the Payment Voucher based on the options selected in the Stat Payment button.

To display the Output VAT ledger balance for the specified period in the Payment Voucher set the options Auto Fill Statutory Payment to Yes and Adjust Input VAT for Payment to No

To consider the Input VAT Ledger for deciding the payment amount for a specified period set the options Auto Fill Statutory Payment and Adjust Input VAT for Payment to Yes

Note: 

To use this facility, the VAT Sub Type option needs to filled with Input VAT or Output VAT for respective Input VAT and Output VAT Duty Ledgers as both the ledgers are grouped under Duties & Taxes with Duty/Tax as Type of VAT. If the Sub Type is not selected, then the auto fill option will not be functional. For transactions passed earlier, the ledgers need to be re-accepted with the VAT Sub Type option.

Did you know that the Auto Fill Functionality for a VAT Ledger populates only when the VAT Sub Type is selected?

Yes, the Statutory Payment Auto Fill Functionality will appear only when the VAT Sub Type is selected compulsorily for VAT Duties and Taxes group. Not selecting the VAT Sub Type option will not invoke the Input VAT adjustment for payment functions.

The user needs to select Input VAT for Input VAT Ledgers, and Output VAT for Output VAT Ledgers as VAT Sub Type.

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Detailed procedure for Surrender : Scenario 2

You may surrender the license after performing the changes (formatting and after re-installing operating system) in the system.

1. Execute Tally > Press CTRL+K > key in your Account ID (e-mail id along with your control centre password)

2. Accept the screen (Figs. 1, 2 & 3).

3. Go to My Tally. Net Account > Account ID > Licensing Configuration > Status > surrender

4. Accept the screen (Figs. 4, 5, 6 & 7). On accepting the screen, the license will be surrendered successfully and you can then re-activate the license.

 (Fig. 1)

  (Fig. 2)

  (Fig. 3)

  (Fig. 4)

  (Fig. 5)

  (Fig. 6)

 (Fig. 7)

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Detailed procedure for Surrender : Scenario 1

Execute Tally.ERP 9.  

1. From Gateway of Tally > F12 > Licensing > surrender license. (Fig. 1).  

2. A message is displayed, ‘You are about to surrender the license’ (Fig. 2). 

3. Key in the Account id and the Tally. Net password (Fig.3).  

4. Accept the screen (Fig. 4). 

(Fig. 1)

(Fig. 2)

(Fig. 3)

(Fig. 4)

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How to Manage Tally.ERP 9 License on reinstall or shift PC

What is this document about?

A Tally.ERP 9 license is tied to the machine it is installed on (for the Gold edition, the license is installed on one system on the LAN, called the License Server).

You may have to perform system maintenance on the license server- maybe to re-install the operating system (OS), upgrade the OS, add or remove hardware, format the hard disk and so on. In most of these cases, Tally.ERP 9 will assume that the system is a different one, and will go into educational mode.

Why this should be done?

For business continuity it is imperative that you surrender (‘surrender’ is another name for ‘park’) the license with Tally, to reactivate on the same machine after maintenance or on another machine. 

Scenarios where you need to surrender the Tally.ERP 9 License:

Scenario 1 (To Read Detailed procedure for Surrender, Please Click here)

• To shift the license from one system to another.
• To format the system.
• To re-install the operating system (Windows).
• To install Tally.ERP 9 in a new folder.

Scenario 2 (To Read Detailed procedure for Surrender, Please Click here)

• Already formatted the system
• Already re-installed the operating system(Windows)
• Computer crashed

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Hardware Requirement for Tally.ERP 9

To install Tally.ERP 9, the user needs to have administrator rights (Create, Write, Update, Modify and Delete permissions). Multilingual users must ensure that the operating system supports multiple languages. The Hardware requirements and Operating system required for a Client-Server and a standalone computer are as described below:  Particulars  Recommended Configuration  Processor  Intel Pentium IV or above and Equivalent  RAM  512 MB or more*  Hard Disk space  60 MB Minimum (Excluding Data)  Monitor Resolutions  1024 x 768 or Higher*  Operating System  Microsoft Windows 7/Vista/XP/2003/2000/NT/ME/98 * Tally.ERP 9 will work on lower configurations too; however we do not recommend the same.

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