How to Split Financial years?

In order to split financial year Press Alt + F3 at Gateway of Tally. It will open the company info. menu.

Select the option Split Company Data.


Then select the company whose data is to be split.

Tally recommends the users to use a split-off-date based on the existing financial year range data of the company.Tally allows any date as the split point but it is recommended that the split point is set as the beginning of the latest financial year.

In Tally split occurs in a set of two periods. For example there are three years data in the period 01/04/2007 to 31/03/2010, for a company in Tally and you want to split them into three separate companies. Then while splitting select the beginning of the latest financial year as Tally would prompt you to do so.

After the dates are confirmed, two new companies will be created and opened on the Split Company Data Screen. First company will have the data for the period 01/04/2007 to 31/03/2009 and the second company will have the data for the period 01/04/2009 to 31/03/2010.

Activities to be done before Splitting the financial year

The following activities are to be done before splitting the financial year in Tally:

• Ensure that all the unadjusted gains or losses have been fully adjusted by journal entries.
• There should not be any pending Purchase bills or Sales bills. If found any then you may account them to the "Bills Pending" Account or respective party accounts.
• It is not compulsory but it is better to keep a back up of the data which already exists.
  

What is Split Financial Year?

Tally is a flexible software which has limitless accounting period(not in case of educational version). It allows the entry of data for any number of years which is a tremendous benefit for the user. In cases where there is huge volume of data in the past, it causes greater overhead on the system. The Split Financial year enables you to retain most benefits and solve this overhead problem. When you split the data of a company then the following things happen:

• For the respective split periods new companies are created.
• Full data is retained in the original company.