Configuring and Performing Bank Reconciliations in Tally Prime
Bank reconciliation in Tally Prime helps businesses match their books of accounts with bank statements to ensure accuracy. This guide provides a step-by-step process for configuring and performing bank reconciliations, using a real example.
Step 1: Enable Bank Reconciliation
Open Tally Prime.
Go to Gateway of Tally.
Navigate to F11: Features.
Under Accounting Features, ensure Enable Auto Bank Reconciliation is set to Yes.
Press Ctrl+A to save the settings.
Step 2: Create a Bank Ledger
Set up a bank ledger to record transactions:
Go to Gateway of Tally.
Select Create under Ledgers.
Enter the ledger name, e.g., ABC Bank.
Select Bank Accounts as the group.
Enter the account details such as:
Bank Name: ABC Bank
Branch: Main Branch
Account Number: 123456789
IFSC Code: ABC0001234
Press Ctrl+A to save the ledger.
Step 3: Record Bank Transactions
Record payments, receipts, and other transactions made through the bank:
Go to Accounting Vouchers.
For a payment:
Select Payment Voucher.
Choose the bank ledger, e.g., ABC Bank.
Enter details such as:
Amount: ₹25,000
Party Ledger: XYZ Suppliers
Narration: Payment for office supplies
Press Ctrl+A to save.
For a receipt:
Select Receipt Voucher.
Choose the bank ledger, e.g., ABC Bank.
Enter details such as:
Amount: ₹50,000
Party Ledger: DEF Customers
Narration: Payment received for services
Press Ctrl+A to save.
Step 4: Access the Bank Reconciliation Screen
To start reconciling bank transactions:
Go to Gateway of Tally.
Navigate to Display More Reports.
Select Banking and then Bank Reconciliation.
Choose the bank ledger, e.g., ABC Bank.
View the list of recorded transactions.
Step 5: Match Transactions with Bank Statements
Compare the transactions in Tally Prime with the bank statement:
For each transaction, update the Bank Date as per the statement if it matches.
If a transaction is missing, investigate and record it if necessary.
Mark the transaction as reconciled once matched.
Step 6: Generate Reconciliation Reports
To review the reconciliation summary:
Go to the Bank Reconciliation screen.
Press Alt+R to generate the reconciliation report.
Review details such as:
Reconciled transactions
Pending transactions
Balance as per bank
Balance as per books
Example
Suppose the company recorded the following transactions for ABC Bank in Tally Prime:
Payment of ₹25,000 to XYZ Suppliers.
Receipt of ₹50,000 from DEF Customers.
During reconciliation, the bank statement shows these transactions occurred on different dates. The reconciliation report confirms both transactions, and the balance as per bank matches the balance as per books after adjustments.
Conclusion
Configuring and performing bank reconciliations in Tally Prime ensures accurate financial records and simplifies bank account management. Regular reconciliation helps businesses avoid discrepancies and maintain financial discipline.