https://help.tallysolutions.com/docs/te9rel65/Data_Management/DM_Moving_to_Next_Financial_Year.htm

Moving to the Next Financial Year

Easily and quickly close the books of accounts of a financial year, and  move your company data to the next financial year. You can achieve this in multiple ways in Tally.ERP 9. Handling your tax liability or input credit when company data is split at the beginning of new financial year is also simplified in Tally.ERP 9.

Change Current Period

Other Methods of Moving to New Financial Year

Split Company Data

Create New Company and Import Opening Balances

Create New Books of Accounts

Change Current Period

To move your data to the new financial year, change the current period to:

Continue the voucher entry in the same company data.

Carry forward all ledger balances without creating a new company.

Compare the reports from different financial years.

To change the current period

Go to Gateway of Tally > click F2 : Period and enter the dates.

The Current Period appears as shown below:

When the Current Period is changed, the balances from the previous financial year are carried forward. Retain the Financial year begins from and Books beginning from dates in the Company Alteration screen.

To record the GST transactions from 1st April 2019, you can restart the voucher numbering with unique voucher numbers for all your vouchers.

The GST rates and mapping of unit of measure to UQC are carried forward to the new year (Release 6.0 to current release), to revise GST rates applicable from 1st April, 2019 use the Tax Rate Setup option . Also, you can record the journal voucher for adjustments against input tax credit .

Other Methods of Moving to New Financial Year

You can also do one of the following to move your data to the new financial year:

Split company data , this will help you to:

o Reduce data size.

o Secure old data and start work in a different folder.

o Maintain separate folders for each financial year.

Import the opening balances from the old company to a new company.

Create new books of accounts to start the transactions afresh.

When you move your data from lower releases to the current release in the new financial year:

The VAT rates and excise tariff are migrated and updated in the stock item masters (Release 4.x or 5.x to current release). You need to configure GST rates and map the unit of measure to UQC in the current year.

The GST rates and mapping of unit of measure to UQC are carried forward to the new year (Release 6.0 to current release).

If you split the data, GST rates will be available in the master. However, in case of any GST rate revision you can update tax rates .

If you split the data, you can update the tax references .

Split Company Data

When you split the data, the original data is retained, and two new companies with unique names and dates are created. You can rename the split company as required, and save the original data in another location.

Before splitting the data:

Ensure the analysis or audits of the books of the previous financial year are complete.

Adjust all the unadjusted forex gains/loss displayed on the balance sheet for multi-currency transactions.

Check the profit and loss account or inventory statements for pending purchase and sales bills, and adjust them to the respective accounts.

To split and move the data to the new financial year:

Take a backup of your data

Verify the data

Split the data

To verify the company data

1. Go to Gateway of Tally > F3 : Cmp Info. > Split Company Data > Verify Company Data .

2. Select the required company.

3. Press Enter to view the Possible Errors screen.

4. Rectify the errors before you proceed to split the data.

To split the company data

1. Go to Gateway of Tally > F3 : Cmp Info > Split Company Data > Select Company .

2. Select the required company for which the data has to be split.

3. Enter or retain the Split from date.

4. Press Enter to split the data. Data will split into two periods.

The synchronisation rules are carried forward in the split data, in both the server and client. The new company name is automatically updated in the Client Rule . If you have renamed the split company, update the same in the Client Rule on the server.

Updating Tax References for Transactions

If you are splitting data having transactions of two or more years you have to update tax reference for transactions.

GST : If you split the data, GST rates get applied as available in the master, however, in case of any revision in the rates you can update the tax rates .

TDS : Fourth quarter TDS payment transaction

Create New Company and Import the Opening Balances

If you have created a new company, export the closing balances of the ledgers and stock items of the old company, and import them as opening balances into the new company. You can also import the audited closing balance of the previous year, as the opening balance into the current year.

To export closing balances from old company

1. Go to Gateway of Tally > Display > List of Accounts > E : Export .

2. Select the Format as XML (Data Interchange) and provide details as shown below:

3. Press Enter to export the data.

To import closing balances as opening balances in new company

1. Go to Gateway of Tally > Import Data > Masters .

2. Enter the path and name of the file containing master data in the Name of file to be imported (XML) field.

3. Select the required option for Treatment of entries already existing .

4. Press Enter to import.

Create New Books of Accounts

You can create a new company and start recording the transactions without any opening balances for the ledgers.

To create new books of accounts

1. Go to Gateway of Tally > F3 : Cmp Info > Create Company .

2. Enter 1-4-2019 as the Financial year begins from date. The same date appears in the Books beginning from field.

3. Create the masters and record transactions.

Note : When you move your data from lower releases to current release in the new financial year:

The VAT rates and excise tariff are migrated and updated in the stock item masters (Release 4.x or 5.x to current release). You need to configure GST rates and map the unit of measure to UQC in the current year.

Service Tax : Service tax opening balance in Release 6.x

Excise for Manufacturer

PLA Opening Balance

CENVAT Credit Opening Balance

Excise Opening Balance

Excise for Dealer

Dealer Excise Opening Stock for finished goods in case of excise for the manufacturer.

Import dealer excise closing stock into the new company