Best Practices for Tally Integration

With our new Tally Integration Utility, you can seamlessly transfer your investment data from MProfit in Tally to automate accounting entries.

The MProfit-Tally Integration is a three step process:

• Step 1: Export Voucher Reports from MProfit Cloud
• Step 2: Generate Tally compatible files from the MProfit Tally Utility
• Step 3: Import files into Tally

You can go through our detailed video showcasing all steps of MProfit-Tally Integration:

https://www.youtube.com/watch?v=2chZrN0HHYY&t=2195s

You can also refer to various other posts we have added for all steps:

https://help.mprofit.in/support/search/solutions?term=tally

In this post, we will cover the best practices to be followed when you do the Tally Integration. 

The best practices are divided based on the 3 step process:

Step 1: For the Cloud – MProfit Setup

1. Create Entity-Wise Accounts in MProfit

Organize your data by creating entity-wise accounts. Managing entity wise data will ensure smooth and convenient import integration in Tally.

For example, if you maintain separate accounts for Mr. A Mehta and Mrs. B Mehta, create separate entity wise accounts portfolio in MProfit Cloud.

2. Broker-Wise Portfolios for Inventory Management

If managing inventory separately for each broker in Tally, create broker-wise portfolios in MProfit. This will also help with quick inventory based reconciliation and ensure that inventory accounts are streamlined.

For example, Mr. A Mehta has 2 brokers, Zerodha and Kotak Securities. Create separate portfolios for each broker and then link both portfolios to the same account.

Please note that if you are managing inventory through separate godowns in Tally, we recommend you create two separate accounts. However, if you do not maintain gowdown system in Tally, you can simply create two portfolios as above and link it to same account when creating Account Portfolio for Tally in MProfit Cloud.

3. Download Voucher Reports for New Periods Only

Avoid downloading existing data; focus on new periods to prevent duplication. This will ensure that only incremental data is imported and no existing data is reimported.

For example, if you have already imported data from 1st April 2024 to 31st December 2024, then only download the voucher from 1st Jan 2025 to date.

4. Understand Charges Allocation of Contract Note

If you prefer to have separate ledgers for various contract note charges like Stamp Duty, SEBI Fees, GST etc., do not enable "Transfer Charges" option in MProfit. However, if you choose to allocate all charges to buy & sell amounts and not have separate ledgers, you can enable "Transfer Charges" option.

Before downloading the voucher report from MProfit, it is important to understand the charges allocation treatment.

You can refer to our detailed post on charges allocation:

https://help.mprofit.in/support/solutions/articles/82000029061-how-can-i-allocate-stt-other-expenses-to-my-transactions-in-mprofit-

5. Integrate Income Entries with Tally

Use the option to select or deselect income entries during integration. For example, if you want all your income entries like Dividend, Interest, Rent to be integrated with Tally, you can select the option before downloading the voucher. The accounting entry will be done by creating respective Income Receivable Ledger.

However, if you choose to pass direct income entries in Tally through Bank Ledger, you need not select this option.

6. Process Inventory option while downloading vouchers

If you are following inventory based accounting in Tally, remember to select "Process Inventory" in the download voucher option.

This has to be done each time you download the voucher.

Step 2: For the MProfit Tally Utility 

1. Create Entity-Wise or Account-Wise Folders

In your local machine where Tally is installed, create separate folders entity wise / account wise for storing Tally Integration Files.

Every time you generate tally compatible files through utility, it will store import files in the folder that you have created. So it will be important to have relevant folders created for ease of storing files.

2. Additional selection if managing Inventory Accounting

If you follow inventory based accounting, remember to select "Process Inventory" in Step 2 of Tally Utility every time you do the integration.

 

3. Restart Process After Import

After a successful import, click “Restart Process” and select “Successfully imported” to save information for duplicate checking.

This is one of the key steps to avoid any duplication entries while importing in Tally.

Step 3: For the Tally App

1. Practice in a Dummy Company

If you are doing the integration process for first-time, we recommend that you use a dummy company and try out all the steps before doing integration with your existing data in Tally.

Once you are comfortable with the entire process, you can do the integration on actual data.

2. Tally Cloud Integration

If you manage your accounts on Tally Cloud, he process will remain same. The only change will be to upload all import files generated by the utility to Tally Cloud.

After the files are uploaded to Tally Cloud, you can follow the same steps for Import in Tally.

3. Take Regular Backups

Backup your data before you start the import process. There is also a backup option at every step of import which you can consider.

Taking regular backups will avoid data duplication and you can restore the data anytime in case of some incorrect import.

We hope this post will help you integrate your investment account from MProfit to Tally in an effective and efficient manner.