Learn the difference between Company Features (F11) and Configuration (F12) in Tally. This beginner-friendly guide explains GST settings, inventory management, accounting features, voucher configuration, practical examples, and common mistakes.
Tally Company Features (F11) and Configuration (F12): Complete Guide
When you work in Tally, you may have noticed two important options: Company Features (F11) and Configuration (F12). Both help you customise Tally according to your business requirements, but they serve different purposes.
F11 allows you to enable or disable business features such as GST, inventory management, payroll, and accounting options. F12, on the other hand, helps you customise how information is entered, displayed, and managed on different screens.
Understanding these settings can make everyday accounting easier, reduce data-entry mistakes, and help you use Tally more efficiently.
In this guide, you will learn what F11 and F12 do, how to configure them, and how to use them in practical business situations.
What Is Company Features (F11) in Tally?
Company Features, commonly accessed using the F11 key, lets you activate or deactivate features for a selected company.
Every business has different accounting needs. A small shop may only require basic accounting and GST, while a manufacturing business may need inventory tracking, batch details, and production-related features.
Instead of showing every possible feature as active, Tally lets you select the options that match your business.
For example, if you run a wholesale business and maintain stock records, you can enable inventory-related features. If your business is registered for GST, you can enable GST features and configure the relevant tax details.
The exact options available depend on your Tally version, company settings, and enabled features.
Why Is F11 Important for Business Accounting?
F11 helps you configure Tally around the way your business operates.
Here are some common reasons to use it:
Enable GST and other statutory features when required.
Activate inventory management for stock-based businesses.
Enable payroll features if you manage employee salaries.
Use cost centres to track expenses by department or project.
Configure additional accounting options for more detailed records.
Avoid activating unnecessary features that your business does not use.
Practical example: Imagine you operate a grocery store. You want to maintain stock quantities, record GST purchases, and track sales. By enabling the relevant inventory and GST features, you can manage these activities within Tally instead of maintaining separate manual records for each task.
How to Open Company Features (F11)
Follow these steps to access the Company Features settings:
Open TallyPrime or your supported version of Tally.
Select the company you want to configure.
Open the relevant company or feature settings screen.
Press F11 to access Company Features, where supported by your version.
Review the available options and enable the features you need.
Save or accept the changes.
In TallyPrime, the location of certain options may differ from older versions of Tally. If pressing F11 does not open the expected screen, check the available keyboard shortcuts and configuration menus for your version.
Before changing settings in an existing company, review how the company is currently configured.
Important Features Available Under F11
The following table explains some commonly used Company Features. Availability and exact names can vary between versions.
| Feature | What It Does | Practical Use |
|---|---|---|
| Accounting | Enables additional accounting capabilities | Tracking outstanding balances and other accounting details |
| Inventory | Supports stock and inventory management | Managing purchases, sales, and stock quantities |
| GST | Enables GST-related configuration and transactions | Recording taxable sales and purchases |
| Cost Centres | Tracks income and expenses by category or department | Comparing expenses across branches |
| Payroll | Supports employee salary management | Preparing salary records |
| Job Costing | Helps track costs related to jobs or projects | Calculating project-level expenses |
| Bill-wise Details | Tracks outstanding bills and payments | Following up on customer dues |
| Budgets and Scenarios | Supports budgeting and selected financial comparisons | Comparing actual performance with planned figures |
Not every option is required for every company. Enable features according to your business activities and applicable accounting requirements.
How to Configure GST Through F11
If your business is registered for GST, you may need to enable the GST feature before recording GST transactions.
The general process is:
Open the relevant company.
Access Company Features or the GST configuration area.
Enable GST, if it is not already enabled.
Enter the applicable registration details, state, registration type, and other required information.
Set up the appropriate tax ledgers, stock items, and transaction details.
Verify the configuration before recording actual transactions.
Example: Suppose your shop sells taxable goods worth ₹10,000 before tax. If the applicable GST rate is 18%, the GST amount would be ₹1,800, making the invoice total ₹11,800.
This is only an illustration. The correct tax rate and treatment depend on the goods or services, place of supply, and applicable GST rules.
Enabling GST in Tally does not automatically guarantee that every transaction is tax-compliant. Your ledgers, item tax rates, transaction types, and statutory details must also be correct.
What Is Configuration (F12) in Tally?
Configuration, commonly associated with the F12 key, allows you to customise the behaviour and appearance of supported Tally screens.
While F11 determines which business capabilities are enabled, F12 generally controls how particular information is entered or displayed.
For example, you may want to show additional details during voucher entry, display more information in reports, or adjust the way descriptions and other fields are handled.
These options are useful when the default screen does not show all the information you need.
Practical example: Suppose you regularly enter purchase vouchers and want to include additional descriptions for transactions. You can review the relevant configuration options and enable the fields or display settings supported by that screen.
The available F12 settings depend on the screen you are using and the Tally version installed.
How to Open Configuration (F12)
You can usually access Configuration by following these steps:
Open Tally and select your company.
Navigate to the relevant voucher, report, or data-entry screen.
Press F12.
Review the available configuration options.
Change the settings required for that screen.
Save or accept the changes if prompted.
Remember that F12 options can vary from one screen to another. Configuration options available in a sales voucher may differ from those available in a balance sheet or stock summary.
If you cannot find a particular setting, check the current screen and your version's help documentation.
Common Settings Available Under F12
F12 provides different options depending on the screen and version. Common configuration areas include the following:
| Configuration Area | Purpose | Example |
|---|---|---|
| Voucher Entry | Controls supported entry fields and details | Displaying additional information while entering a voucher |
| Reports | Adjusts report display and information | Showing extra details in a report |
| Descriptions | Customises supported description fields | Adding more context to a transaction |
| Inventory Screens | Controls selected stock-related display options | Reviewing additional item information |
| Printing | Provides supported print-related settings | Adjusting information shown on a printed document |
| Data Display | Changes how selected information appears | Making a report easier to review |
These are examples of configuration areas, not a guarantee that every option will appear under F12 in every version.
Difference Between F11 and F12 in Tally
Although both options customise Tally, their main purposes are different.
| Basis | Company Features (F11) | Configuration (F12) |
|---|---|---|
| Main purpose | Enables or disables business features | Customises supported screen behaviour |
| Typical use | Activating GST or inventory | Adjusting entry and display options |
| Scope | Company-level feature settings | Often related to the current screen or function |
| Business impact | Can change available accounting capabilities | Can change how information is entered or presented |
| Example | Enabling inventory management | Displaying additional information during voucher entry |
| When to use | When business requirements change | When you need a different entry or display experience |
Easy way to remember: F11 controls which capabilities your company uses, while F12 helps customise how you work with those capabilities.
Practical Example: Using F11 and F12 Together
Consider a wholesale business that purchases products from suppliers and sells them to retailers.
The owner wants to manage stock, record GST transactions, and enter detailed purchase vouchers.
Here is how both settings can help.
Using F11:
Enable inventory features to maintain stock records.
Configure GST if the business needs GST functionality.
Enable bill-wise tracking to monitor outstanding customer and supplier balances, where required.
Using F12:
Review the purchase voucher's configuration options.
Adjust supported fields and entry preferences.
Customise report displays where the relevant options are available.
Once these settings are correctly configured, the business can maintain more organised records and review transactions more easily.
However, F11 and F12 are only part of the setup. Accurate ledgers, stock items, tax details, voucher entries, and regular reconciliation are equally important.
Common Mistakes to Avoid When Using F11 and F12
Changing settings without understanding their purpose can create confusion. Keep these points in mind.
Enabling every feature unnecessarily
A small business may not need payroll, job costing, or advanced inventory options. Activate features based on actual requirements.
Changing settings without checking existing records
Before modifying an established company, review the existing configuration and consider how the change may affect data entry and reports.
Confusing configuration with feature activation
F12 may let you customise a screen, but it does not necessarily activate the underlying business feature. Check F11 or the relevant feature settings when required.
Assuming every version has identical menus
TallyPrime and older Tally versions may use different menus, layouts, and shortcut behaviour. Follow the instructions for your installed version.
Ignoring GST and accounting accuracy
Enabling a feature does not replace correct tax setup, ledger creation, or proper voucher entry. Review transactions and statutory reports carefully.
Best Practices for Managing Tally Settings
To keep your accounting system organised, follow a few simple practices.
Enable only the features your business requires.
Verify GST and other statutory settings before entering live transactions.
Review F12 options on the screen where you need to make a change.
Keep a record of important configuration changes.
Check reports after changing relevant settings.
Take appropriate backups before making significant changes to an existing company.
Consult a qualified accountant when a setting affects tax treatment or statutory reporting.
These habits help reduce avoidable errors and make Tally easier to manage as your business grows.
Conclusion
Company Features (F11) and Configuration (F12) are two important tools for customising Tally to suit your accounting needs.
F11 helps you enable business capabilities such as GST, inventory management, payroll, and other accounting features. F12 helps you adjust supported entry, display, and reporting options according to the screen you are using.
For the best results, understand what each setting does before changing it. A well-configured Tally company can make daily accounting more organised, improve visibility into business transactions, and help you maintain more reliable financial records.
Frequently Asked Questions
What is F11 in Tally?
F11 opens Company Features in supported versions, allowing you to enable or disable relevant business features.
What is F12 in Tally?
F12 opens Configuration on supported screens, allowing you to customise available entry, display, and other screen-specific options.
What is the main difference between F11 and F12?
F11 primarily manages company features, whereas F12 primarily customises how supported screens work or display information.
Can I enable GST using F11?
Yes, supported Tally versions allow you to enable GST through the relevant company feature settings and then configure the required tax details.
Do F11 and F12 work the same way in every Tally version?
No. Options, menus, and keyboard shortcuts may vary between TallyPrime and older versions. Check the documentation for your installed version.
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