Reminder for Utility Or Agreement Expering Alters on the welcome page


Create Account Head
Usually, grouping of accounts is done only when reports are needed. This may result in delay in preparing the reports. 
You can group the ledger accounts while creating them. This will enable your reports and statements to reflect the desired classification at any point.  Also you can also re-group the ledgers (with some minimal restrictions) if re-classification is necessary. Re-grouping becomes necessary whenever there is a change in the nature of information. However, re-grouping can be done only by users who have authorised rights.

At the highest level of grouping, accounts are classified into capital or revenue — specifically into assets, liabilities, income and expenditure. Based on mercantile accounting principles, we have provides a set of reserved groups and allows you to modify their names or create sub-groups.

The Group Creation screen displays:-

Name of Group
Enter the name of the Group to be created. For example, Administrative Expenses.
Alias
Enter an alias name to allow access to the group using the Alias in addition to its name or leave it blank. For example, for Administrative expenses, you can enter Office Expense or even an alphanumeric code, say E001, as an alias

Sub-Groups
A Sub-Group behaves exactly like a group and is created under a group.
Groups have a hierarchical structure. The main group of accounts that determine the entire accounting and their presentation are the asset, liability, income or the expenditure. These main groups ascertain whether a ledger affects Profit & Loss Account as a revenue item or if it affects the Balance Sheet.




This helps in the purpose of keeping the accounts of a particular group together during displays and analysis.   Use the classification depending on the most natural group for the party.

During voucher entry, only the ledger accounts are used and the group structure remains transparent, irrespective of the use of sub-classification.
The same principle can be applied to Sundry Debtors, Sales Accounts, Purchase Accounts and so on.
You can classify Debtors and Creditors according to geographical areas as shown below.
You can classify creditors according to their tax status as shown below.
You can create unlimited levels of sub-groups (like branches) or ledgers only if they are two or more in number. You can simply create ledgers directly under Marketing Expenses as shown below.

Main Ledger Creations

A Ledger is the actual account head to which you identify a transaction. All Ledgers have to be classified into Groups. Hence a thorough understanding of account classification is important for working with Ledgers. The creation and usage of Groups, has been explained above. Now you will learn how it works with Ledgers.

Creating a Ledger Account with minimal information:


Name
Enter the Name of the account. You can provide the full name of the account. 

Account Group
All accounts must be classified under their appropriate Groups. Select the Group under which the Ledger is created from the List of Groups. 

 Is This Buyer or Vendor
Tick if the ledger is created for Buyer or Vendor

Is  Bank
Tick if the ledger is created for any Bank

Rest is optional

Sub Ledger Creations


Mailing Details
Mailing Details is applicable only for party accounts like Sundry Debtors, Creditors and Branch Divisions. This is also available for loan accounts. Enter the party's particulars here. These are used in mailing outputs like statement of accounts.

Tax Information
The Tax Information consists of the default fields PAN/IT No. and the TIN/SALES Tax No. 
 
Default Credit Period
Credit Periods are in days only and are calculated from the Invoice date.

Warehouse

A Cost Centre / Warehouse is any unit of an organisation to which transactions (generally, revenue) can be allocated. When only costs or expenses are allocated to these units, they are referred to as Cost Centres. When profits are also allocated to these units, they become Profit Centres. You can now obtain a Profit and Loss account of each such Profit Centre.
Cost Centre in Tally allows an additional dimension to a transaction where a Ledger account indicates the nature of the transaction. It does not readily disclose, except in the narration field, which part of the organisation was involved in the transaction.
By providing Cost Centres, a transaction can be allocated to it, which would then enable extraction of all transactions for a Cost Centre. Tally gives you the Cost Centre break-up of each transaction as well as details of transactions for each Cost Centre.
Some examples of Cost Centres are

   
Cash/Bank Entry
By Default, the Payment Entry screen appears in Single Entry Mode 



Advantages of Double Entry Mode

Receipt

Bank Receipt Voucher Print


Journal Voucher





Contra Entry
According to accounting rules, Contra Entry is a transaction indicating transfer of funds from:

Petty Cash

Sales Return
 

Select the Sales Account from the Account combo. Select the Report Dates and the Report Layout from the Layout combo. Click OK to view the Report.

This report is similar to the Sales Register with the only difference being that instead of Sales Invoices, it gives the user details of Sales Returns entered during the period for which he is taking the report. The information included is the Return Date, the Customer Name, the Product, Quantity, Rate and Gross. The Report is customizable, if any other information is required.
Click Close in the Report to close the Sales Returns Book Report window and return to   the Main Menu.

Purchase Returns

 
The Purchases Returns Book window is displayed when selected under the Purchases Reports option of the Financial Accounting Menu.

Select the Purchases Account from the Account combo. Select the Report Dates and the Report Layout from the Layout combo. Click OK to view the Report.
This report is similar to the Purchases Register with the only difference being that instead of Purchase Vouchers, it gives the user details of Purchases Returns entered during the period for which the user are taking the report. T

Reconciliation of Bank accounts
Reconciling the company's bank accounts with the banker's statement is a regular task of accounting.

The display goes to the Reconciliation mode, which can be edited. The primary component of the current screen is the column for Bankers Date.

The Balance as per Company Books reflects the balance as on the last date

Report for  Bank Reco.

Trial Balance




Ledger & Sub Ledger




Report Trial Balance
Day Book Report
Outstanding Report
Audit Report
Cash Flow Report
Cash Bank Report
Journal Voucher Report
Sale Report
Purchase Report
DR/CR Report
Ledger & Sub Ledger Report
Vat Report
Bank Reconsilation Report
Minutes Of Meeting Report
TDS Challan Report
Balance-sheet (group)
Voucher Head Wise Report
Employee Wise Report
Day Book (Cash/Bank)
Profit & loss A/C
Balance Sheet Report

…

 Fixed Assets


Fixed Assets Tree

• Asset Details  
• Depreciation Details    
• Depreciation Query     
• Accounting Links     

Depreciation Methods

Asset Usage 
Asset Transfer    
Asset Maintenance      
Asset Repairs    
Change Asset Value    
Asset Disposal
Fixed Assets Report   
Depreciation Schedule     
Post Depreciation Entries  

 Fixed Assets

Intraweb Solutions now brings you a fully integrated Fixed Assets Module, capable of managing the Fixed Assets inventory in any Organization. The Module comprises a List of all the Fixed Assets in a Tree Format, similar to the Accounts Tree or Products Tree. You have complete flexibility in defining Asset Groups, to classify your Fixed Assets as per your requirements. Besides this, you have options to record full details of each Asset, right from the time of purchase until disposal of the same. Intraweb Solutions makes it simple for you to maintain records of each Asset by incorporating separate Screens for an Asset.s Usage, Maintenance, Repairs, Transfer and Disposal.

The Fixed Assets Menu is displayed when selected from the Fixed Assets option of the Main Menu, as shown below.

The various options in the Fixed Assets Module are shown below: ──

• Fixed Assets Tree
• Assets Usage
• Transfer of Assets
• Asset Maintenance
• Asset Repairs
• Change Asset Value
• Disposal of Assets
• Fixed Assets Report
• Depreciation Schedule
• Post Depreciation Entries

The Fixed Assets Master window is displayed as shown Below. It consists of four Panels, each containing details about the Fixed Asset. Here in the Asset Details Panel shown, we enter the Description of the Asset, the Asset Code, Alias, the Asset Type, the Location, Value, Date of Purchase, the Vendor or Supplier, Purchase Date, Price, Quantity, Cumulative Depreciation, Insured Value, Scrap Value, Purchase Limit and Quantity Limit. You can also attach a photograph of the Asset, provided it has been scanned into your computer in .jpg format.

Fixed Assets Tree

The Fixed Assets window is displayed when selected under the Fixed Assets Tree option of the Fixed Assets Menu.

The Fixed Assets Tree is similar to the Accounts or Products Tree, wherein you can create and arrange all your Fixed Asset items under separate groups and classify them at different levels as required.

Apart from this, you can create/add Asset records, edit or delete them as required. The Procedure to be followed for all operations in the Tree is exactly similar to that described earlier in the Accounts or Products Tree. Kindly refer to the Chapter entitled “Getting Started-Create Masters” for more information on this topic.

Asset Details

To create a new Fixed Assets Record, click Add in the Fixed Assets Tree window displayed on the previous page. The Fixed Assets Master window is displayed as shown above. It consists of four Panels, each containing details about the Fixed Asset. Here in the Asset Details Panel shown, we enter the Description of the Asset, the Asset Code, Alias, the Asset Type, the Location, Value, Date of Purchase, the Vendor or Supplier, Purchase Date, Price, Quantity, Cumulative Depreciation, Insured Value, Scrap Value, Purchase Limit and Quantity Limit.

You can also attach a photograph of the Asset, provided it has been scanned into your computer in .jpg format. Click the … button beside the Photo field and the Browse window is displayed to help you locate the jpg file of the asset, as shown on the next page.

Select the file and click Open to attach the photo to the Asset record.

One more option is available in Fixed Assets master creation screen wherein you can opt for creating multiple Asset codes for as much quantity as you are mentioning in the quantity field.
This option will create e.g. if quantity is given as “10” then 10 different assets with running sequence of codes and asset names.

This will reduce the burden of creating multiple asset codes for bulk purchases of assets.

You can now move to the next Panel – Depreciation Details.

Depreciation Details

In the Depreciation Details Panel, you have to select the parameters based on which the Depreciation will be calculated for the Asset. These parameters are explained below.

Depreciation Methods
Depreciation calculations vary from one Asset Type to another, depending on the Method of Depreciation selected. Intraweb Solutions provides for the following methods explained below.

• Based on Usage: This method is usually applied to Plant and Machinery, where the wear and tear of the Machines is proportionate to the usage of the machines. Hence, the Starting Unit of the Machine at the beginning of the accounting period is required for Depreciation calculations.
  
  
• Charge Off: A fixed amount is written off as Depreciation every year, until the Total Asset Value is fully written off.
  
  
• Straight Line Method: In this method, the Original Cost of the Asset is written off in equal installments over the expected useful life of the Asset.  Hence, if the Original Cost of the Asset is 10,000/- and the expected useful life of the Asset is 5 years, the Depreciation Amount for the Asset would be 2,000/- per year, calculated pro-rata for the number of days of any given period.
  
  
• WDV Diminishing Value: Here, the Depreciation for the year is calculated at a fixed rate on the Written Down Value (WDV) of the Asset i.e. the Cost of the Asset minus the Depreciation calculated upto the previous year. Thus, if the Cost of an Asset is 10,000/- and the Rate of Depreciation is 10%, the Depreciation calculations would be done as shown below.

Year 1: Cost = 10,000 Depreciation = 1,000
Year 2: WDV = 9,000 Depreciation = 900
Year 3: WDV = 8,100 Depreciation = 810
      Depreciation would continue until the value of the Asset is fully diminished.

• WDV Diminishing Value Calculated Half Yearly: This method is similar to the previous method (WDV Diminishing Value). The only difference is that the calculations are done pro-rata for the number of days of any given period.

Select the Method of Depreciation from the selection box as required.
Select the Unit of Usage. The Unit of Usage would not be applicable to all types of Assets; it would mainly apply to those Assets where the Method of Depreciation selected is „Based on Usage.. The default units are KM, Hour, Production Quantity or Production Runs.
Enter the Rate of Depreciation applicable to the Asset. Rates of Depreciation may be different for different types of Fixed Assets.
Select the Date of Commencement starting from which the Asset is to be depreciated.
Enter the Starting Unit applicable, if „Based on Usage. is selected as Method of Depreciation.
The Depreciation for the Asset will be calculated based on the parameters entered above.
In Straight Line method normally Intraweb Solutions asks for the number of years in which the asset will be written off.
If required we can even maintain Depreciation in Straight Line method and have the depreciation rate mentioned.
If this option is required we have you tick on the option of “Always define Depreciation Rate as %age” in Preferences under Masters tab as shown in the figure below.
If this option is checked on, then Intraweb Solutions will ask for the “Rate of depreciation” for such assets where the method of depreciation is selected as “Straight Line”.

Depreciation Query

The Depreciation Query Panel allows you to find out the Accumulated Depreciation for an Asset on any given date. Select the Date from the Date combo box. The Year-to-Date Depreciation and the Prior Year C/F Depreciation figures are shown, together with the Meter Reading, if applicable.

Accounting Links

Accounting Links are necessary for the generation and posting of Depreciation and Asset Disposal entries. You have to nominate the Accounts, which will be updated, when the Depreciation or Asset Transfer/Disposal entries are generated.

Select the Asset Account Code, the Accumulated Depreciation Account Code, the Depreciation P/L Account Code and the Sales Account.
Once you have completed entering the details on all four Panels of the Fixed Assets Master window, click OK to create the record or click Cancel to close the Fixed Assets Master window and return to the Main Menu without adding the record to the Master.

If you wish to add more fields to the Fixed Assets Master record, click the Customize button. The Customization of Fields window is displayed, wherein you can add extra fields to the record. The procedure for this is similar to that of the Accounts Master or Products Master. (Refer the chapter entitled Getting Started-Create Masters).

The Usage or Consumption of certain Assets can be recorded either through consumption of units which is determined by their meter readings or by recording the quantum of production it is used for, based on the Batch Numbers.
The Usage or Consumption of certain Assets can be recorded either through consumption of units which is determined by their meter readings or by recording the quantum of production it is used for, based on the Batch Numbers.

The Asset Usage entry screen displayed above provides for the recording of the usage or consumption of the same at user-selected intervals.
The Usage Entry window is displayed when selected under the Assets Usage option of the Fixed Assets Menu.
The Usage No. is similar to the Document or Voucher No. in Financial Accounting. Enter or select the Usage No., Date, Unit and Asset Code of the Asset.
If usage of the Asset is determined by the Meter Readings, in the Meter Reading box, enter the Last Reading and New Units consumed. The New Reading is automatically calculated and displayed.
If usage is based on the Production Quantity, in the Usage based on Production box, enter the Batch Number, Product and Quantity produced.
Click Update to save the Usage record or click Cancel to close the Usage Entry window and return to the Main Menu.

Asset Transfer

It is inevitable that movable Assets like machinery, furniture, computer equipment, etc. are transferred from one location or branch to another to meet requirements for the same.
When Assets are moved from one place to another, it becomes necessary to record the change of location of the asset and also account for the depreciation of the same in the new location from the date of transfer.

The Transfer window is displayed when selected under the Transfer of Assets option of the Fixed Assets Menu.

The Transfer No. is like a Document No. reference. Enter the Transfer No. Select the Date, Asset Code and the Location to which the Asset is being transferred. Enter the current value of the Asset. In the Commencement Date box, select the date from which Depreciation of the Asset should commence at the new location. Usually, depreciation continues from the Original date of purchase. Optionally, you can choose the New radio button and select a new date, from which Depreciation calculations at the new location should commence.
Click Update to save the Asset Transfer record or click Cancel to close the Transfer window and return to the Main Menu.

Some Fixed Assets like machinery usually have a Maintenance Contract or Agreement setup to ensure that they are maintained in good running condition at all times.

The Asset Maintenance screen allows the user to keep track of the Maintenance Contracts for the Assets, thereby fulfilling an important requirement in Fixed Asset management.
The Maintenance window is displayed when selected under the Maintenance option of the Fixed Assets Menu.

Enter the Contract No. Select the Asset Code, Commencement Date and Expiry Date of the Contract, and the Vendor from the respective combo boxes. Enter the No. of Units, the Rate and the Value of the Contract.

Click OK to save the Contract Details or click Cancel to close the Maintenance window and return to the Main Menu.

Asset Repairs

 
During the life of an Asset, it is necessary to keep track of the performance of the machine, the number of times it has undergone repairs, the spares or parts added/replaced, the value of such repairs, etc.

The above Asset Repair screen helps the user to keep track of repairs and servicing for all equipments and machines whenever they are carried out.
The Repair window is displayed when selected under the Repairs option of the Fixed Assets Menu.

Enter the Repair No. Select the Date of Repair and the Asset Code. Enter the Quantity, Rate and Value of the Asset. Next select the Warranty Date. Enter the details of the Parts Added or Replaced and finally enter the Remarks, if any.

Click OK to save the Asset Repair details or click Cancel to close the Repair window and return to the Main Menu.

Change Asset Value
 


Sometimes, the value of an Asset may need to be enhanced or increased, whenever modifications are made to the Asset. For this purpose, Intraweb Solutions provides the Change Value option, wherein the User can add to the value of the Asset and specify the Commence-ment Date for Depreciation to be calculated on the additional value.

The Change Value window is displayed when selected under the Change Assets Value option of the Fixed Assets Menu.

Enter the Document No. Select the Asset Code and Date from the respective combo boxes. Enter the Additional Value by which the Asset Value is to be increased. Select the Commencement Date for Depreciation to be calculated and enter details of the Additional Value in the Remarks text box.

Click Save to update the changes or click Cancel to close the Change Value window and return to the Main Menu.

Asset Disposal

Assets are generally disposed of when they have served their useful life and purpose or if they become obsolete. If the Asset is disposed, the details of the transaction need to be recorded, since Depreciation should not be calculated on an Asset from the date of disposal.

The Asset Disposal screen above helps the user to record the details of such Asset disposal transactions, as and when they take place.

The Disposal window is displayed when selected under the Disposal of Assets option of the Fixed Assets Menu.

The Disposal No. is like a Document reference. Enter the Disposal No. Select the Date and Asset Code from the respective combo boxes. Enter the Accumulated Depreciation amount for the Asset to be disposed. Select the Sale Account and enter the Quantity and Value of the Sale.

Click OK to update the database or click Cancel to close the Disposal window and return to the Main Menu.

Fixed Assets Report
 

The Fixed Assets Report in Intraweb Solutions allows you to view the Master information for all Fixed Assets in a customized format.

The Report Parameters are displayed in the Tree window shown above. You can select individual Assets, whose details are to be displayed in the report, by clicking them in the Tree window. Click Select All Items if you wish to view the Report for all Assets. Click Unselect All to reset the selection at any time and make a fresh selection. Select the period for which you wish to see the report by selecting the From and To Dates in the Report Dates box. Select the Report Layout from the Report combo box. Lastly, select the report Output Destination from the Output box. Click OK to process the report or click Cancel to close the Tree window and return to the Main Menu.

Note that you can customize any existing Report Layout by selecting the Layout from the Layout combo and then clicking the Customize Report button. You can also filter the Fixed Assets Report as per your requirements. Click Set Report Filters to enter the criteria for filtering the Report. For more information on how to customize or filter the report, please refer to the chapter entitled Reporting Basics.

A sample Fixed Assets Report is displayed on the next page.

Depreciation Schedule

The Depreciation Schedule Report gives you the complete details of the Assets during the selected period. Full details are available and the report can be customized to suit the user.s requirements. The Report is entitled „Fixed Assets Schedule. and printed in columnar format. A sample report is displayed below.

Post Depreciation Entries

Based on the information defined in the Fixed Assets Master, the Depreciation on Fixed Assets can be auto-calculated and entries for the same generated/posted to the respective Accounts, nominated in the Accounting Links Panel for each Asset. The Depreciation Posting window is displayed when you select this option from the Fixed Assets Menu.
Enter the Depreciation Posting Date. If you wish to have a single entry posted after consolidating the Depreciation for the Asset Groups, select the Consolidated Posting checkbox.
Click OK to process and post the Depreciation entries or click Cancel to close the Depreciation Posting window and return to the Main Menu.