How to Setup New Financial Year in Tally.ERP 9?


How to create a new financial year in Tally.ERP 9?  Is that Simple?

Yes, Setting up a new financial year in Tally.ERP9 is simple and seamless with either of 3 methods below

 1. Change Current Period

Simple & Easy method to move to Next financial Year, Which is strongly Recommended, if the audit of accounts are not completed, Forex transactions & pending bills are not adjusted.

The benefit of this method

  • 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.
    • To record the GST transactions from 1st April 2020, you can restart the voucher numbering with unique voucher numbers for all your vouchers.
    • The GST rates and mapping of a unit of measure to UQC are carried forward to the New Year (Release 6.0 to current release), to revise GST rates applicable from 1st April 2020 use the Tax Rate Setup option.
    • Also, you can record the journal voucher for adjustments against input tax credit
2. Split the Company Data

When you split the data, the original data is retained, and two new companies with unique names and dates are created. You can rename the split company as required, and save the original data in another location.

Benefits of this method

  • Reduce data size.
  • Secure old data and start work in a different folder.
  • Maintain separate folders for each financial year.

Points to Ensure Before splitting the data:

  • Audits of the books of the previous financial year are complete.
  • All the unadjusted forex gains/loss displayed on the balance sheet for multi-currency transactions are adjusted.
  • Check the profit and loss account or inventory statements for pending purchase and sales bills, and adjust them to the respective accounts.

Procedure to follow before Split Data:

  • Take a backup of your data
  • Verify the data – view the Possible Errors screen & rectify the errors before you proceed to split the data
  • Split the data – Data will split into two periods.

Points to Ensure after splitting the data:

SYNC: The synchronization rules are carried forward in the split data, in both the server and client. The new company name is automatically updated in the Client Rule. If you have renamed the split company, update the same in the Client Rule on the server.

GST: If you split the data, GST rates get applied as available in the master, however, in case of any revision in the rates you can update the tax rates.

3. 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.

To export closing balances from the old company

  • Go to Gateway of Tally > Display > List of Accounts > E: Export.
  • Select the Format as XML (Data Interchange) and provide details as shown below:

Ledger Export


To import closing balances as opening balances in the new company

  • Go to Gateway of Tally > Import Data > Masters.
  • Enter the path and name of the file containing master data in the Name of file to be imported (XML) field.
  • Select the required option for Treatment of entries already existing.

Import Masters

Note: Do not attempt to change the financial year period from Company alteration screen, which may lead to data loss.

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