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When you have a branch in a different state, then how you will prepare accounts for branch ?

A head office and branch office accounts must be separated however at the year end and for assessment purpose, the branch Accounts are required to be incorporated into the Head Office Account.

A branch is required to issue Form F towards stock transfer from HO to Branch

First of all you must understand what is a branch. A branch is a distinct entity from its Head Office having separate TIN CST number. It may or may not have separate bank accounts.The head office and Branch accounting transactions are required to be recorded separately and you can’t club both the transactions.

Suppose a branch office incur an expenses of Rs. 5000 towards consultancy fees to an advocate and the same is being paid by the Head office bank account, then the entry will be made as per below :

In the books of branch Account

Dr. Consultancy Fees Expenses   Rs. 5000

Cr  M/s. ABC  & co.                         Rs. 5000

(Being consultancy fees credited to supplier’s Account)

Now on payment of this amount from the bank Account of HO

Dr. M/s. ABC & Co. Rs. 5000

Cr. Head Office Account   Rs. 5000

(Being amount paid to supplier from the HO Bank Account)

In the books of Head office only one entry as per below will be made

DR. Branch Account                Rs. 5000

Cr. Bank Account                    Rs. 5000

(Being Amount paid on behalf of Branch to M/s………)

In tally, you have to create a branch account under the group branch/Division Accounts  as shown below for creating a branch for Red Express Mumbai branch account

Similarly in the books of Branch Accounts you can group the head office under branch /divisions as mentioned above.

Branch stock transfers are subject to Form no F I will write in future about how to record inter branch transfer accounting

Do let me know if you have some specific query

59 thoughts on “Branch Accounting in Tally |how to do ?

  1. please tell me how to manage things further specailly stock tranfer, invocing for the branch office etc..

    1. PLEASE GIVE ME EXAMPLE OF BRANCHES STOCK MAITAIN AND ACCOUNT

  2. how to branch account null in ho a.c for the financial year

  3. How to set configuration of Stock Market account in Tally ? We want to know about capital gain / loss for our personal account. Please give me guideline.

    1. Use Shares s as inventory and record sales purchase transactions accordingly.

  4. Dear Mahendra jee
    I am going to launch a new tv chanel which has 3 Nos. Branch office also in difrent state. Can you please tell me in details that which software we should use for accouting and payroll purpose?. Plese also suggest me how to use the same in brief that how we made salary, projected exp. , budjet etc.

    With Regards

    Rajan Mishra

    1. Dear Rajanji,
      Thanks for your query.
      Tally.erp 9 is the best suit which serves most common requirement of any business. for special purpose you may need to customize it if you wish so. Tally.erp 9 provides a complete payroll module. for making entry you may contact us on Gtalk or yahoo messenger
      best regards

  5. Dear Mahendra,
    I’m a wholesale dealer for Tiles and Sanitary and Real Estate business in Qatar. I’m doing both tradinf and Real Estate acconts in same data. Now I want to seperate this a/c into trading and real estate. Can I use cost centre or please advise is any other method can I adopt.

    Hareesh TV
    Doha, QATAR

    1. Dear Hareesh,
      Cost Center is something different and it will not serve your purpose.
      if the two business are totally different which have its own income/expenses then I would suggest you to create two different company one is for Tiles & Senitary, Second is Real Estate. at the year end you can merge both this company into one group company. Merging both will not meant that both these company will be deleted. it will be there still but it will create a new group company which will import all the data from both the company e.g. senitary and real estate and will consolidated it.

  6. How two make branches in tally

  7. lalat parida says:

    Dear Mahendra ji,

    i want to know the income head ( which head i booking our income)our company is collect money from customer like fixed deposit,RD,MIS & they monthly return % wise to customer…..

    1. Lalat,
      To get free support, you must mention your Tally serial number otherwise, search Google

  8. Dear Sir/Madam,
    I want to Know How to do Branch Accounts and Partnership Accounts in Tally & Explain the Proforma, Under which group you have to enter in Tally for the above mentioned topics for Computerised Branch Accounts for BCom 2nd Year.

    Thanking You Sir,

  9. DEEPAK KUMAR says:

    please send entry of All types for branch accounting.
    for a new branch

    regards
    Deepak

    1. Hello Deepak,
      Entries depends on the actual transaction. Instead of asking such blank way, you should mention the transaction for which you require entries. No one can have such ready made entries for any one.

  10. kindly provide the fixed assent in enty in taly ERP9.

    Regards
    deepak

  11. U.VINAY KUMAR says:

    Sir,
    I Wanted to know, if funds transfered from Head office Bank a/c to Branch Bank a/c. where do we enter this entry in Tally 9(if contra entry created cash balance is showing negative) please help me by replying me the Solution….

    1. USE PAYMENT VOUCHER
      BRANCH BANK A/C DR.
      TO HEAD OFFICE BANK A/C

      IN BRANCH
      RECEIPT

      BRANCH BANK A/C DR.
      TO HEAD OFFICE BRANCH

  12. i want to know the entries for stock transfers from head office to branch office and the groups to be ascertained for each ledger.

    thanking you
    raju

  13. how to stock transfer from branch office to head office & how it will be entry in tally ERP.9 Please clarify.

  14. how to maintain letter of credit process in tally.

    1. Shakin,
      A letter of Credit process does not require to maintain in Tally!
      It’s like a credit facility by the bank and you need to enter it based on the transactions.
      First you should understand what a letter of credit. Once you got it, it will be easy to record the transactions related to L/c in Tally.epr 9 accounting software

  15. We have a branch in same state and I want to start branch transfer memo printing from tally erp. But we cant able to print address of both e.i destination branch and source branch on transfer memo. Also I required format of transfer memo like delivery notes. Pls help me for the same.

  16. Dear Mr.Mahindra,
    Can you send me link and notes which have complete solution for branch accounting with examples.

    Reply awaits.

    Regards.

  17. Dear Mahendra,

    There are some indirect expense (petrol exp) incured from branch and paid by Head offce.
    How to record this transaction in Tally In BRANCHS BOOK.

    1. Jubi,
      Debit the expenses and Credit the HO

  18. Sir/Madam
    I want to know how to findout total sales amount (cash and credit) against particular party?

    1. display> statements of accounts> sales> select month

      Blank the date field, press alt+F12 (Range)

      Vouchers> Ledgers> Name> containing> (party (full or part) name)

  19. sir,
    Pls help me, how to make Letter of credit transaction in tally

  20. shubhangi says:

    helo, sir
    how to create staff salary entries in talyy erp9.
    but i am not using payroll.can other way for create the entries?
    please help me.

    1. Use Cost Center, it will help you…!!

  21. AshwaniBhan says:

    Q to Mahendra: How to manage sales in two States when accounts are maintained at one location… specifically – invoicing in two states locally while receipt and payments in one state. Group company feature isn’t helpful as consolidation is only at report level and not at voucher level. Ledgers don’t show complete picture.

  22. swethasadhana26 says:

    Helo Sir
    How to maintain the Multipleshares  in Tally ERP9

  23. pravesh jha says:

    Respected sir,
    Can u please help me about the below transaction related to branch account.
    A company has two one branch at kerala and head office in mumbai. the mumbai office transfer their goods to kerala with F form. the sale bill of kerala raised by mumbai branch with VAT @4.04%, but the company purchased goods from mumbai VAT 5%. so please clear that how we pass that entries in tally and how we can get setoff of VAT.
    Please reply urjently.
    Thanking you

    Pravesh Jha.
    Mumbai

  24. Dear Sir,

    We have one company having Excise registration for manufacturing & Trading both.

    How to maintain separate Excise Return for both manufacturing & Trading in tally?

  25. ALtamash A Mulla says:

    To Respected Sir
    i have question about branch acc .sir tell me in case we have branch in same city or district then how to prepare accounts for branches in tally.It has same Tin no & CST no then how entries in tally. i hope u will do me needful.
    thanking you
    with regard
    Mulla

  26. mir majid says:

    i have a company which has its manufacturing location in one state & has seperate TIN. my sales outlet are in other states. we have installed erp tally.We have seperated main ledgers by location name, but have common bank account at head office. We have created gowdown for each location and we transfer the stock by stock transfer. But we send payment to our suppliers at manufacturing location directly from head office .We have not created seperate branch account. Is it the proper way of doing it or we need to change any thing.Even salary is paid directly through payrolls from headoffice.

  27. Nagaraj.K says:

    Dear Sir,
    I have 8 Shops in Bangalore i am using Inventory in tally erp 9.3.62 silver Single user , how can i transfer stock and Receiving Stock from one shop to another shop in tallyerp data.
    Please reply urgently.
    Thanking you
    Nagaraj.K
    nagaraj.bangalore@yahoo.co.in

  28. How to enter company’s own vehicle Trip expenses in a transport company

  29. prakash c k says:

    dear sir i want to know how to do construction and developers accounts in tally

  30. jyothibabu says:

    please send all types of entries for new branch of jewellery shop.

  31. Respected sir,
    Can u please help me about the below transaction related to branch account.
    A company has two one branch at karnataka and head office in mumbai. the mumbai office transfer their goods to karnataka with F form. the sale bill of karnataka raised by mumbai branch with VAT @4.04%, but the company purchased goods from mumbai VAT 5%. so please clear that how we pass that entries in tally and how we can get setoff of VAT.
    Please reply urjently.
    Thanking you

  32. I have a query Please help me solve this:
    We have a branch in same city and we have a centralised purchase in H.O and so stock is transferred from H.O to branch now when I take in stock in tally how Do I treat it when i take in as opening balance in stock in balance sheet it shows as difference what should I Do with regard to this

  33. hello
    sir
    I have two branches 1) Association 2) driving school two saparate accounts maintain in tally
    but ending 2 branches accounts clubing

    i have transfer to cash association to driving school . cash payment or cash received in 2 branches

    how to entries in tally

    how to create leadgers in 2 accounts

  34. Mukesh Misra says:

    My Office started a branch in same state. Their 95% purchases are outside of Uttar Pradesh and 5% are from Uttar Pradesh. Now how to manage Head office & Branch office both accounts. Accounting of both offices will be managed by me.

    1. Mukesh Misra says:

      Thanks & waiting for valuable help. I am using 6 No. Licence of ERP9. Please also suggest me any book for my help or points from where I may get solution from Tally ERP9 online help

  35. How we transfer my old version data in New version data for example tally 7.2 to Tally 9

  36. Respected Sir,
    kindly give the procedure of Jwellery Shop. In jwellery shop a Shop Keeper Purchase ornament on 90 % Purity and sale them 100% rate on same weight. So how can we adjust it. Kindly give all procedure of ornament shop procedure with images help.
    Thanking You

  37. we had a private ltd. co. & we are going to open division of it.
    how can i maintain the account in tally

  38. sir im fresher now ihave joined for office my designation is accountant i wil do pur / sales / recipt / contra everything im doing but the prblm is how to tally balance sheet their is diffrences in opening balance here nobody there to guide but i have to solve they are asking me to give outstanding amount when i enterd from april it will cum some partys has paid the amount but again it will show the pending amt pls give me suggestion what we have to maintain in tally

  39. M new to tally erp9 help me from tips

  40. IF I transfer money from one branch to another is it contra entry???

  41. Avinash Khandelwal says:

    help me with what ankit (above) has made the query for

    1. No, A contra entry is one which is related to same company, but two difference cash/bank ledger for e.g. if you transfer from main cash to petty cash or from SBI to ICICI of the same company then it is called a contra entry in Tally.ERP 9. Though you can use simple payment and receipt entry in Tally instead of a contra entry

  42. Aishita Ahuja says:

    Hello sir,
    I just wanted to know how to make payslip of employees?

  43. We have education institution providing services in Engg and B schools. Both institutions are under a trust.

    Please suggest which is best method
    1. Cost Center or
    2. Branch accounting

  44. subhasish maity says:

    Respected sir,how do you do entry in tally erp9 for inter branch sale and purchase

  45. Our organisation sepreate 3 brach according to service provide by them in State, now they want to close to it and merge all branch on state leval, how to pass branch closing entry in tally.

  46. patrick owor says:

    send me ten different practical examples of branch accounting situations. Iam facing challenges with this topic of branch accounting.

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