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Moving to the Next Financial Year

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

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

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

 In some countries the financial period starts from 1st April and ends on 31st Mar. You can enter 1-Apr with respective year in the From field and 31-Mar in the To field while changing current period in such countries.

To record the transactions from 1st Jan 2022, you can restart the voucher numbering with unique voucher numbers for all your voucher types, if required.

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:
    • Reduce data size.
    • Secure old data and start work in a different folder.
    • Maintain separate folders for each financial year.
    • Resolve Mismatch in Transactions Under VAT in TallyPrime and save the returns
  • Import the opening balances from the old company to a new company.
  • Create new books of accounts to start the transactions afresh.
  • Resolve Mismatch in Transactions Under VAT in TallyPrime and save the returns

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

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.
  • Resolve Mismatch in Transactions Under VAT in TallyPrime and save the returns

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

To verify the company data

  1. Go to Gateway of Tally > press Alt+Y (Y: Data) > Split > Verify 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 > press Alt+Y (Y: Data) > Split > Verify Data
  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.

To update tax references

If you are splitting data having transactions of two or more years, with taxation transactions of pre-GST regime, the tax references are not carried forward in the split data. 

Resolve Mismatch in Transactions Under VAT

The Uncertain Transaction (Corrections needed) in the Return Summary section of the VAT Return report lists the number of vouchers that are not included in the returns due to exceptions in information required for inclusion in returns. Drill down from this row to view the Summary of Exceptions screen.

You can identify the exceptions and correct the transactions before filing tax returns. The Vouchers with incomplete/mismatch in information appears as shown below:

The vouchers are grouped under different exception types such as:

  • Nature of transaction, assessable value, rate of tax modified in voucher
  • Incorrect tax type selected in tax ledger
  • Mismatch due to tax amount modified in the voucher
  • Vouchers with incomplete/incorrect adjustment details

The exceptions are listed in the order of priority, based on the importance of the information for generating returns and audit file. Hence, a voucher with multiple exceptions is listed in the exception type higher up the order. Once that exception is resolved, the voucher will move down to the next exception type. Such vouchers with multiple exceptions continue to be listed as exceptions until all incomplete/mismatch information is resolved. This will help you clear all exceptions before filing the returns.

However, vouchers with only one exception are moved to Included in returns list after that exception is resolved.

Click here to get more details on different kind of exceptions and steps to resolved them.

Save VAT returns

When you want to split a company data while moving to a new financial year you need to save your VAT returns. You can save VAT returns for any period and view the saved returns from the Return Transaction Book.

You can recompute your returns and save it as revised or you can overwrite it, in case any transaction or master is modified in the period for which returns are saved. Once the returns are recomputed you can either overwrite the existing saved copy of the returns or save as revised to retain the originally saved returns.

Click here for more details on saving returns.

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 > Chart of Accounts > Ledgers > E: Export > Current.
  2. Configure the Export.
    1. Click Configure.
    2. Set Export closing balance as opening balance to Yes.
    3. Set File Format as XML (Data Interchange).
      Configure Ledger Export in TallyPrime
  3. Press Esc to close the configuration and return.
    Ledger Export in TallyPrime
  4. Press Enter to export the data.

Carry forward ledgers without Opening Balance

You may want to carry forward the ledgers to the next financial year without opening balance. Follow the steps for creating the new Company and importing the Opening Balances with the changes given below.

  1. In the Export screen, click Configure > set Export closing balance as opening balance to No.
  2. Press Esc and then press Enter to export the data.

To import closing balances as opening balances in new company

  1. Go to Gateway of Tally > O: Import Data > Masters.
  2. Enter the location of the file in the File Path field.
  3. Enter name of the file containing master data in the File to import (XML) field.
  4. Select the required option for Behaviour of import if master already exists.


  5. 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> press Alt+K (K: Company) > Create.
  2. Enter 1-4-2020 as the Financial year beginning from date. The same date appears in the Books beginning from field.


  3. Create the masters and record transactions.
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