Moving your company data to the next financial year can be done by either of the following methods:
Each method meets specific requirements of book keeping practice. The table below gives you an insight into when and why each method can be used.
Note: All date examples used in this topic are samples. Use the applicable dates when you move to the new financial year.
When to use this method?
Why to use this method?
● Beginning of the new financial year. For example, for a financial year starting from April, change the period to 1st April. If the financial is starting from January, change the period to 1st January
● To continue voucher entry in the same company data
● To carry forward all ledger balances without creating a new company
● To compare reports from different financial years
● After analysis/audit of reports from previous financial years
● In case data accumulation has resulted in increased data size
● To reduce data size
● To secure old data and start work in a different folder
● To have separate folders for different financial years
● When a new company is created
● To import the audited opening balance to current year’s financial data
● To carry forward all ledger/stock item balances to the newly created company
● To create a new company and continue voucher entry
● When a new company is created
● To manually enter opening balance to current year's financial data
● To start fresh books of accounts for new financial year
To change the current period
1. Go to Gateway of Tally.
2. Click F2: Period.
3. Change the period. The Current Period is displayed in Gateway of Tally as shown below:
When the Current Period is changed
● Balances from the previous financial year will be carried forward.
● Financial year begins from and Books beginning from dates in Company Alteration screen do not have to be changed.
Note: The Current Period shown in the image is for reference. While changing the period use the dates applicable to your data.
Tally.ERP 9’s flexible period-independent accounting permits the entry of data for any number of years. However, the presence of voluminous old data creates unnecessary load on the system. Splitting the data by financial years enables you to retain most of the benefits while overcoming this system overhead.
When you split the data
● New companies are created for the respective split periods. The names of the new companies can be altered as per your requirement.
● The entire data is retained in the original company. After taking a backup, the original data can be deleted from the hard disk to avoid confusion while selecting companies.
Before splitting the data, ensure
● The item Unadjusted Forex Gains/Loss does not appear in the balance sheet, if your company is enabled with multi-currency feature.
● There are no pending purchase bills or sales bills. Check the profit and loss account and inventory statements for pending purchase bills or sales bills. You may account them to the respective party accounts or to the respective bills pending accounts.
● You have created a backup of your data.
● You have verified company data, if you are using Tally.ERP 9 Release 3.0 and above.
To verify 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 and proceed with splitting your data.
Click here for more information and scenarios about verifying company data.
To split 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 the Split from date.
4. Press Enter to split the data.
Note: From Tally.ERP 9 Release 3.0 onwards, all un-reconciled transactions (for BRS) will get carried forward into split company.
We recommend the Split from date to be based on the existing data. Any date can be entered as the split point, but it is recommended that the beginning date of the latest financial year to be set as the split point.
Splits occur in sets of two periods. Hence, start with the latest. For example, if you need to split a company's data of two years (1-4-2016 to 31-03-2018) into two separate companies, each with a different financial year, then select the beginning of the latest financial year - 1-4-2017. On confirming the periods, two new companies will be created - one with data from 1-4-2016 to 31-03-2017 and the other for the period 1-4-2017 to 31-03-2018. The historical data, for one or more financial years, will be preserved as a single company.
Click here for various error and warning messages displayed during data splitting.
After splitting the data, the old synchronisation rules are carried forward in both the server and client. However, the company name will be changed and this is updated in the Client Rule automatically.
You can change the Company Name on the server in Client Rule. If you are using Tally.NET for synchronisation, you can change the Connect Name in F11: Features of the server.
Note: The carry forward of Sync Rules after splitting of data is available from Tally.ERP 9 Release 2.0 onwards.
Customers who have set the statutory compliance for India should ensure that all statutory transactions are closed.
After splitting the data, the tax references will not be carried forward. Therefore, if you maintain statutory data, record transactions for the following:
● TDS: The Fourth Quarter TDS Payment transaction
● Service Tax
● Excise for Manufacturer
● Excise for Dealer
o Dealer Excise Opening Stock Rel 5.x (finished goods in case of excise for manufacturer)
In Tally.ERP 9 Release 3.0 and later, you can export the closing balances of the ledgers or stock items or both on any given date, and import the same as opening balances to the new company.
To export closing balances for Tally.ERP 9 Release 3.0 and later
1. Go to Gateway of Tally > Display > List of Accounts > E: Export.
2. Select Default (All Languages) in the field Language.
3. Select XML (Data Interchange) as the Format.
4. Enter the path of the location where the file is to be exported in field Export Location.
5. Enter the required output file name or accept the default file name in the field Output File Name.
6. Enable the option Open Exported File?
7. Select the required master type to export or All Masters to export all the masters available in the respective company, in the field Type of Masters.
8. Enable the option Include dependent masters?
9. Enable the option Export Closing Balances as Opening? to export the closing balances.
10. Specify the date up to which the closing balances are to be considered for exporting, in the field To Date. The completed Exporting List of Ledgers screen appears as shown below.
11. Press Enter to export the file.
Create a new company and import the exported closing balances as opening balance.
To import closing balances as opening balances
1. Go to Gateway of Tally > Import of Data.
2. Select the option Masters.
3. Specify the path and the name of the file from which the data is to be imported in the field Name of file to be imported (XML).
4. Select the option Modify with New Data as the behaviour for the imported data in the field Treatment of entries already existing. The Import Masters section appears as shown below:
On successfully importing the data, you can view the balances for ledgers and stock items.
You can also create a new company and start recording transactions afresh.
To create new books of accounts
1. Go to Gateway of Tally> F3: Cmp Info > Create Company.
2. Enter 01-04-2017 as the Financial year begins from date.
The same date will appear in the Books beginning from field. This can be changed as per your requirement. The Company Creation screen appears as shown below:
When you upgrade to Tally.ERP 9 Release 5.0 or later versions from an earlier version, the data is migrated to meet the structural requirement of the latest version.
The VAT rate and excise tariff details are migrated and updated in the stock item masters. The VAT Rate Setup and Excise Tariff Setup options under Tax Rate Setup provide options for configuring VAT rates and excise tariffs respectively in a fast and effective manner.
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