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.
A. 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.
Note : When the Current Period is changed, the balances from the previous financial year are carried forward.
B. Other Methods of Moving to New Financial Year
Split Company Data
Create New Company and Import Opening Balances
Create New Books of Accounts
1. Split Company Data
Advantages of Splitting of data
Reduce data size. Multiple year tally data will tends to make tally working slow. Splitting of data will reduce data size and increase the speed.
Secure old data and start work in a different folder. Splitting of data will ensure the security of data of previous year.
Maintain separate folders for each financial year.
After Splitting, new number series for tax invoice can be started. If anyone wants to change the number series for billing in the New Year, then he can do that from 1st April. New number series should be started from 1st April.
Unwanted or not used Accounting Masters & Inventory Masters can be deleted in new split company.
Security setup will be automatically carried forward in new split company.
Disadvantages of Splitting of data
After Splitting, two companies with different financial years are created. If auditing work is done in first company, changes need to be done in split company as well.
Any changes done in previous company then opening balance need to be entered manually.
Note: If data is of high volume and if there is any error in the data, splitting process will take time.
Prerequisites for splitting company data
Before splitting the data, the user must ensure that:
A backup of the data.
All unadjusted forex gains/losses have been fully adjusted by recording journal entries.
No purchase/sales bills are due. Check the Profit & Loss A/c and inventory statements (purchase/sales bills pending). You have to account them in the respective party accounts or in the bills pending account.
The company data is verified to ensure that no errors occur during splitting using the Verify Company Data option.
Verify Company Data
You may want to split the company data at the end of the current financial year or at the beginning of the next financial year when the data size becomes huge. While splitting the data based on financial years, Verify Company Data automatically detects possible errors in the data. You can manually correct them and then split the data.
Verify Company Data detects the following possible errors:
Voucher has bank allocation details in non-banking ledgers
Non-banking ledger has bank reconciliation details
Voucher has duplicate bank allocation details
Incorrect ledger was selected in Bank allocation
Incorrect Units of measurements for an Item
Cost Centre does not belong to the Category
No Accounting Allocations
Cost Break-up total does not match
Service tax (ST) category does not exist
No entries in voucher
Important points to remember
The Split from date is based on the existing data and is considered as the beginning of the current financial year.
Once the company data is split, two separate companies will be created and opened, without any changes to the original data.
After the split, all the three companies act as separate companies. You can make entries, display reports and alter any data in these companies.
If required, you can alter the names of the companies that are created as a result of splitting.
Issue faced and solution after splitting data
Issue 1 : If Bank Reconcile Doesn't matches after splitting data.
Solution : We can add opening manually in Bank Reconciliation.
Issue 2 : If outstanding doesn't matches with group and bill reference wise.
Solution : After splitting alter the ledgers and adjust the opening balances bill wise.
Issue 3 : If your stock is not maintained physically or if you have not started maintaining stock in tally from previous financial year.
Solution : You can maintain physical stock in tally after splitting data by manually adding opening balances.
Issue 4 : The job work order’s, sale order's and purchase order's that are created before & as on 31st March 2018 from date will not track in to current financial year of company.
Solution : We have to create new purchase order, sales order, job work order only for pending quantity on 1st April with different voucher types.
Note : As TDS Ledgers do not have bill wise reference allocations, it is not possible to track TDS purchase or JV entries into payment entries after company is split.
How to maintain Voucher Numbering after Splitting Data & Creating New Financial Year?
The Methods of Numbering list appears as shown below:
Automatic (Manual Override)
You can select the required method of voucher numbering from the voucher type creation/alteration screen based on below explanation.
Invoice numbering goes series wise thus making it easy to track & maintain.
If we do backdated entry, series of invoice numbering changes.
Automatic (Manual Override)
Voucher number goes series wise automatically & it also provide user to enter voucher number manually.
If we do backdated entry, series of voucher numbering changes, but we can rectify it manual.
Voucher number is not sorted series wise.
User can put voucher number according to your choice or preference.
Series of voucher numbering is not displayed automatically. User has to put Voucher number manually & this increase chance of error.
The number which the first user saves is carried forward to other user.
If two user make voucher entry simultaneously then the user which save 1st voucher will get the voucher number & next voucher number is assigned to other user.
Select None to disable voucher numbering.
We suggest to use Automatic (Manual Override)
Refer to Tally help file for more details and type of errors.
2. 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.
3. Create New Books of Accounts
You can create a new company and start recording the transactions without any opening balances for the ledgers.
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