It is standard procedure for clients to email their Tally data to the auditors before the audit. Based on this information, an audit is carried out, and audit adjustment entries are entered into the Chartered Accountant’s office computer. Because of the tremendous pressure of the due date, it is not possible to maintain a separate record of these adjustment entries. As a result, these modification entries are seldom disclosed to the customer.
After a few months, the Client’s accountant warns him that the starting balances on the Financial Statements do not match those on the signed Financial Statements. It’s practically impossible to recall all of these entries at this point. Currently, the only options are examining ledger accounts with disparities to trace these entries or separate the company and adjust the initial balance. Click here to know more about computer accounting course Ahmedabad.
Tally XML Import / Export is the solution that comes to the rescue in this case. Our clients can easily import the adjustment entries into their Tally system by using this technique to export an XML file with the adjustment entries. These entries must be labelled in some way.
In Tally, you can tag an entry. Any entry added or amended during the audit/finalisation process should be indicated as such on the spreadsheet. It is, therefore, necessary to provide a unique combination of characters at some point in the story. AUDIT is used throughout this tutorial. This technique is helpful for quickly sifting through the labelled entries in a database.
The steps are summarised as follows:
The Computer of a Chartered Accountant: Tag all of the audit adjustment entries with the tagging technique described above. Gateway of Tally > Display > Day Book > Tag all of the audit adjustment entries. Periods should be changed from one month to a year, for example: From April 1, 2019, to March 31, 2020. Choose Range as the Voucher with a Narration containing the words AUDIT Exporting the transaction in the XML Data Interchange format is recommended. Using notepad, edit DayBook.xml and replace the word AUDIT with nothing (optional) Client’s Computer: Send the DayBook.xml file to the Client. DayBook.xml should be saved in some folder. Make a backup of your company folder before importing XML data into Tally > Import of Data > Vouchers. Specify the location of DayBook.xml. Following the completion of the import, check the ledger balances to ensure that the substance was successful. Frequently Asked Questions are included below (FAQ) Q1. If Tally is used by both the CA and the Client, does it have to be the same version?
Answer: No, XML Import/Export is not dependent on the version of the underlying XML document.
Q2.Some entries are replicated rather than overwritten to save space. What is the underlying reason?
Answer: Tally generates a unique system-generated number for each voucher entry that is used to identify it (which is hidden). The modification of an existing record has no effect on this unique number. When the XML file is imported onto the Client’s computer, Tally overwrites the Voucher entries that the CA has modified on his end because the exact number appears in the XML file. However, if any record is removed and re-passed, either by the CA or by the Client, this number matching process considers this as a new entry rather than a modified entry, and duplication is seen.
Q3 Is it possible to use this procedure to recover deleted voucher entries?
Answer: No, deleted entries are removed from the company’s database and are never included in the XML file. This means that any entry deleted by CA will not be deleted on the Client’s end during XML Import. This can be remedied by passing another reverse voucher entry, which effectively nullifies the effect of the first (like in CBS, SAP). The outcome is the same as deletion. Tally will treat this entry as a new voucher entry made at the Client’s location.
Q4 The import of some adjustment entries did not occur on the Client’s PC. What exactly went wrong?
Answer: No new or modified ledger accounts are created or modified by either CA or the Client at their respective ends. The import process does not capture this (we are explicitly exporting Vouchers only). It is necessary to manually construct any ledger accounts that are missing on the Client’s end.
Q5 Is there a report for imported vouchers that can be generated in Tally?
Answer: In a file entitled Tally.imp, Tally stores all of the Masters / Vouchers that were imported by XML Import. Open this file in the notepad to see what it contains. The most recent XML Import result can be seen at the bottom of this file if you scroll down to the bottom. The time is given, and additional details such as the number of coupons that have been added, edited, skipped, and deleted. If the import fails during the process, the cause for the failure is also supplied.
Q6 Is it possible that running imports twice or more will have negative consequences?
Answer: No, executing import for a second or third time provides the same effect as the first time. The reason is straightforward: Tally cannot create vouchers with the same system-generated number repeatedly. As a result, beginning with the second transaction, these transactions are recognised as modifications with the same accounting consequences. So there is no need to be concerned about this issue.