Tally's flexible period less accounting permits entry of data for any number of years. This in itself has tremendous benefits. However, presence of old data in cases where they are voluminous causes greater overhead on the system. Splitting financial years enables you to retain most benefits while overcoming this overhead.
When you split the data, two things happen:
| 1. | New companies are created for the respective split periods. |
| 2. | Full data is retained in the original company. |
Important pre-split activity
Note: Not carrying out these will result in mismatched information.
Before you split data, ensure that:
| 1. | All unadjusted Forex gains/losses have been fully adjusted by journal entries. Verify that the item does not appear in the Balance Sheet. |
| 2. | There are no Purchase Bills/Sales Bills due. Check the Profit & Loss Account and Inventory Statements – Purchase/Sales Bills Pending. You may account them to the respective party accounts or to respective 'Bills Pending' Account. |
| 3. | Ensure that a backup of the data exists. |
Note: For users of Sales/Purchase Order Processing features: Since open orders are not carried forward, you should not split data if you do, be aware that you have to enter the outstanding orders afresh
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