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https://help.tallysolutions.com/docs/te9rel51/sync/Online_Synchronisation.htm

Online Synchronisation

In online synchronisation, the client and the server companies are connected live through the Tally.NET Server or a private network.

Online Synchronisation using Tally.NET Server: When online synchronisation is performed using Tally.NET Server, the Tally.NET Server acts as a bridge or a connection between the server and the client company.

Online Synchronisation using private network: When online synchronisation is performed on a private network, data is sent or received using internet or LAN.