✅ Company Creation in Tallyprime

Company Creation is the first and most important step in Tally Prime.
A Company in Tally represents a business entity for which accounting records are maintained.

Once a company is created, you can record:

• Accounting transactions
• Inventory records
• Payroll
• Statutory compliance such as GST, TDS, TCS, VAT, Excise
• Generate financial reports like Balance Sheet, P&L, Trial Balance

# Creating a company in Tally means opening a new set of books of accounts for a business for a particular financial year.

✅ Company Creation Fields 

Company Creation Fields – Explanation 

1. Directory

The Directory field specifies the data path (location) where the company data will be stored on the computer.

Explanation:

• By default, Tally creates the company in its default data folder.
• This field is skipped automatically if you accept the default location.
• To change the location, press the Backspace key and enter the required path.

Example:
D:\TallyPrimeData

2. Company Name

Enter the name of the company whose books of accounts are being created.

Explanation:

• If you are a professional accountant, always enter the client’s company name, not your own firm name.

Example:
ABC Traders Pvt. Ltd.

3. Mailing Name and Address

The Mailing Name is the name that appears on:

• Invoices
• Reports
• Letters

Explanation:

• By default, Tally displays the Company Name as the Mailing Name.
• You can change it if the mailing name is different from the company name.

Example:

• Company Name: ABC Traders Pvt. Ltd.
• Mailing Name: ABC Traders
•  

4 State & Country

This information is used for tax calculation and statutory compliance (such as GST).

Explanation:

• Select the State and Country from the predefined list in Tally.

Example: State: Karnataka
Country: India

5. PIN Code:

PIN Code (Postal Index Number) of the company’s address.

Example: 585105

6 Telephone Number:

Enter the landline telephone number of the company (if available).

Example: 08472-123456

7  Mobile Number

Enter the mobile number of the company used for communication.

Example: +91 98765 43210

8 E-mail Address:

This e-mail address is used to:

• Send invoices
• Email reports
• Share GST returns directly from Tally

Example:
abctraders@gmail.com

9 Financial Year

A Financial Year is a fixed accounting period, usually 12 months, for which accounts are maintained.

Explanation:

• In most countries, accounts are maintained for 12 months.
• In India, the financial year starts on 1st April and ends on 31st March.

Example:
Financial Year From: 01-04-2024
Financial Year To: 31-03-2025

10 Books Beginning From

This field specifies the actual date from which accounting entries will start.

Explanation:

• By default, it is the same as the Financial Year From date.
• It can be changed if the business started later.

Example:
Business started on 01-06-2024
→ Books Beginning From: 01-06-2024

Security (TallyVault Password)
TallyVault is a security feature that encrypts company data using a password.

Important Note: ⚠️

• Use this feature very carefully.
• If the password is forgotten, data cannot be recovered.
• You may permanently lose the company data.

Example:
Set TallyVault Password only for highly confidential company data.

✅ Base Currency Setting Information 

1 Base Currency Symbol
The symbol used to represent the main currency of the company.

Default Setting:
₹ (Rupees) Example: ₹ 5,000

2. Formal Name
The full official name of the currency represented by the symbol.

Default Setting:
Indian Rupees (INR)

Example: Symbol: ₹ Formal Name: Indian Rupees

3. Number of Decimal Places
The number of digits allowed after the decimal point in currency values.

Default Setting: 2 decimal places

Explanation:

• Indian currency uses 2 decimal places (Paise).
• Some foreign currencies may use 3 or 4 decimal places.

Examples:

• ₹ 150.75 (2 decimal places)
• ₹ 150.755 (3 decimal places – for foreign currency)

4. Is Symbol Suffixed to Amounts?
   Determines whether the currency symbol appears after the amount.

Default Setting: No

Explanation:
In India, the currency symbol is placed before the amount.

Examples:

• Correct (India): ₹ 1,000
• Incorrect (India): 1,000₹

5. Symbol for Decimal Portion
   The name used for the decimal part of the currency.

Default Setting: Paise

Example:
₹ 50.25 , → 25 Paise

6. Show Amounts in Millions?
   Displays large amounts in millions instead of full figures.

Default Setting: No

Examples:

• No: ₹ 1,00,00,000
• Yes: ₹ 10.00 Million (Generally kept No in Indian accounting)

7. Put a Space Between Amount and Symbol?
   Determines whether there is a space between the currency symbol and amount.

Default Setting: Yes

Examples:

• With space: ₹ 500
• Without space: ₹500

8. Decimal Places for Printing Amounts in Words
   Specifies how many decimal places should be printed when the amount is shown in words.

Important Rule:
This number must be equal to or less than the number set in Number of Decimal Places.

Examples:

• Amount: ₹ 125.50
• Printed in words:
  Rupees One Hundred Twenty-Five and Fifty Paise Only
• If decimal places = 0
  ₹ 125.00 , → Rupees One Hundred Twenty-Five Only