STARTING WITH NEW FINANCIAL YEAR

NEW FINANCIAL YEAR

Objectives:

This document will help you understand the process of starting a new financial year using the same company data in Tally.

By the end you would have learnt to:

1. Change ‘Current Period’ and carry forward last year’s ledger balances,
2. Pass vouchers for the new financial year,
3. Split existing data into new company folders
4. Start using a new company for the current financial year

There are two different options available for starting new financial year in Tally:

1. Changing ‘Current Period’ in Gateway of Tally,
2. Splitting Company Data after finalization of accounts,

Information about starting new financial year:

Procedures for starting new financial year	When it should be done?	Why it should be followed?	Who should follow it?
Changing ‘Current Period’ in Gateway of Tally	Beginning of new financial year, such as 1st Jan, 1st Mar Eg: If Financial year is Jan-Dec - 1st of January If financial year is Apr- Mar - 1st of March	To start new financial year and continue voucher entry in same database To carry forward all ledger balances without creating a new company To see reports of different financial years together	Customers who have started books of accounts in Tally recently (i.e., in last financial year) Wants to carry forward all ledger balances without creating a new company Customers who want to see reports for different financial years together
Splitting Company Data after finalization of accounts	When last financial year accounts are finalized/audited When data accumulated for multiple financial years and data size increased	To reduce data size and improve performance/speed of Tally To secure old financial years data and work with current financial year To have separate company folders for different financial years	Customers having data for more than two financial years irrespective of size Customers having huge/bulk data with multiple financial years Customer who wants to secure old financial year data and keep it safe

SPLIT COMPANY DATA

Splitting Company Data after finalization of accounts,

Introduction

Tally’s flexible period-less accounting permits the entry of data for any number of years. This feature has tremendous benefits. The presence of voluminous old data creates unnecessary load on the system. Splitting a financial year enables you to retain most of the benefits while overcoming this system overhead.

When you split the data, two things happen:-

1. New companies are created for the respective split periods.
2. The entire data is retained in the original company.

How to ‘Split Company Data’:

Pre split activities

Before you split the data, ensure that:

• All adjustment forex gains/losses have been fully adjusted using Journal entries. Verify that the item "Unadjusted Forex Gains/Loss" does not appear in the balance sheet
• There are no pending purchase bills/sales bills. Check the profit and loss account and inventory statements for pending purchase/sales bills. You may account them to the respective party accounts or to the respective “bills pending” accounts.
• Ensure that a backup of the data has been taken.

Procedure to Split the Financial Years

1. Go to Gateway of Tally, Select Alt+F3: Cmp Info
2. Select Split Company Data.
3. Select the Company whose data is to be split.
4. Tally recommends the split-off date based on the existing data. It is recommended that the Split Point is set as the beginning of the latest financial year, though Tally permits any date as the split point.
5. Splits occur in sets of two periods. Hence, start with the latest. For example, you need to split a company’s three years data (1-1-2005 to 31-12-2008) into three separate "companies", each with a particular financial year. Select the beginning of the latest financial year first (1-1-2008).

6. On confirming the periods, two new companies will be created – one with data from 1-1-2005 to 31-12-2007, i.e., for two years, and the other for the period 1-1-2008 to 31-12-2008.

The historical data, for one or more financial years, will be preserved as a single company, and the current financial year, will be preserved as another company. Normally there is no reason or benefit to split the earlier years again into separate companies. If you wish to do so, repeat the steps mentioned above for the earlier period (1-1-2005 to 31-12-2007).

All the companies are full companies in their own right. Data can be entered, displayed and altered. Please print the key financial reports (Trial Balance, Balance Sheet, Profit & Loss, and Stock Summary etc.) for each company for the relevant periods and compare them for accuracy.

Once you are satisfied that you have a successful split, it is advisable to take a backup of the original company and permanently delete its data from the hard-disk. This will prevent any accidental entry of fresh data into the old database.

To delete a company, press Alt+F3 at the Gateway of Tally, select a company to Alter it, and at the point where you can modify the Company Information, press Alt+D.

You will also need to alter the names of the two freshly created companies as per your requirement.

Data Splitting Errors and their possible solutions
Error Messages	Possible Suggestions/Solutions
Cannot change parent of group	Solution: Open Tally.spl in Tally Directory, check the message, rectify the same and proceed.
No accounting information Or No accounting details	Reason: While splitting the data, Tally consolidates all the entries made. This error occurs only if the system finds some subsequent alterations to a particular master, i.e., if you have changed the name of the master or if the entry is incomplete or if you have made some alterations to that particular entry. Solution: Open Tally.spl in Tally Directory and check the message. This file provides you with information of the voucher number and date that has a problem. Make a note of the same, re-accept or delete that particular voucher through day book and then try splitting.
No entries in voucher	Reason: This error may occur due to the following reasons: (1) The Security Control and Tally Audit features have been enabled in the company creation screen and one or more vouchers have been deleted after auditing them. (2) If voucher entries were passed enabling 'Allow '0' Valued entries in vouchers' feature and later disabled. Solution: (1) Accept the un-audited vouchers / ledgers (Gateway of Tally > Display > Statement of Accounts > Tally Audit > Vouchers/Ledgers F7: Accept all or F7 to accept one by one > Save (2) Enable 'Allow '0' Valued entries in Vouchers' in F11 Features.
Parent belongs to different category	Reason: This error may occur if you have altered the cost category of a cost centre after entering few vouchers for the same. Solution: Check the Tally.spl (Shockwave flash object) file available in the Tally folder, for the details of the error reported. Rectify the same and try splitting.
Ledger does not exist! This is specific to Tally 9 Release 1.0 user, upgrade to higher releases and try to split the company data.	Reason: It has been observed that the masters (cost category/cost centre) altered in Tally 9 Release 1.0 was not getting refreshed. Solution: Create a new company in Tally 9.0 Release 1.11. Export all the masters and the daybook (from the company causing the error) ,import it to the new company created, and then try splitting.
Cost Category does not exist! This is specific to Tally 9 Release 1.0 user, upgrade to higher releases and try to split the company data.	Reason: It has been observed that the masters (cost category/cost centre) altered in Tally 9 Release 1.0 was not getting refreshed. Solution: Create a new company in Tally 9.0 Release 1.11. Export all the masters and the daybook (from company causing the error), import it to the new company created, and then try splitting.
Godown/Location does not exist! Godown/Location ‘’ does not exist! Tally 9 Release 1.11 displays an error message while splitting. Found this error also in Tally 9 Release 1 & 1.1	Reason: It has been observed that the Destination Godown/Location name disappears once a Stock Journal with Voucher Class entry is passed. Solution: This has been noted and corrected in Tally 9 Release 1.2.

I have been using Tally and wish to split the company data. Will there be a problem in synchronization?

Yes, once the data is split, the old company Rule will not be applicable. You have to create a new Rule and run the synchronization cycle.