UNIT- V

MIS REPORTS

MIS
MIS is an organizational method of providing past, present, and projected information related
to internal operations and external intelligence. It supports the planning, control, and operation
functions of an organization by furnishing uniform information in the proper time frame to assist the
decision-makers”.
MIS is a discipline that covers the application of people, technologies and procedures for solving
business related problems.

Characteristics:
The main characteristics of MIS are discussed below:
 Management oriented:
 The main focus of the MIS is to cater to the information needs of the management and so
it is designed with that clear focus.
 It is designed around the needs felt by the several levels of management.

 Management Directed:
 Since the MIS is mainly meant to cater to the needs of the management, it also has a
strong role in the creation and control of the MIS.
 It has a major role in the creation as well as the continuous development of the MIS. One
important thing is to design and maintain it as per the needs and expectations of
management.

 Integrated:
 MIS is an integrated system that is linked to all the operational and functional activities of
the management.
 Moreover, the reason behind MIS being an integrated system is that the need for
information for decision making arises in all corners of an organization.

 Common data flows:

 The integrated approach towards MIS ensures that duplication and redundancy can be
avoided. It helps at keeping operations simplified.
 MIS performs the storage, dissemination, and processing of data in an integrated manner.

 Strategic Planning:
 An MIS cannot be designed in a short period but requires careful planning. It is because
an MIS is not designed to serve just the short term needs of an organization but it must be
designed in a manner that it can serve the organization for the next five to ten years. MIS
must not become obsolete but must remain relevant even in the long term.
  Bias towards centralization:
 The bias towards centralization in an MIS is because of the fact that if the information is
entered, updated and deleted from several points then providing correct information to all
the managers would difficult.
 A centralized data repository ensures that version control can be exercised and an
integrated common view of the data can remain available to the managers.

 Information and communication technology-enabled:

 Competition has kept growing intense, and that has increased the need for timely and
accurate data.
 Managers need accurate data at the right time to make the right decisions. It can be made
possible only through the use of information technology.

Advantages:
 Helps in Managing Data:
 MIS helps in maintaining and managing crucial business data for assisting in complex
decision-making by the management.
 The critical information is stored in an organized manner, and it can be accessed by the
administration quickly whenever required.

 Analyses Trends
 Management needs to prepare forecasts for strategic planning and determine future goals.
Thus, to create such a strategy, it is essential to have accurate reports on prevailing market
trends.
 MIS uses various mathematical tools for analyzing the current market trend and
predicting future trends based on such information.

 Helps in Strategic Planning

 MIS reports play a significant role in the strategic planning of the company. It helps in
determining the future needs of the company and assists in formulating goals and strategy
based on such information.
 MIS report is also helpful in identifying resources required to meet the company’s
objective. Thus, it is vital that the information provided by MIS and reporting is accurate
and reliable.

 Goal Setting
 For any organization, setting up a goal is very crucial matter, and it requires lots of
research and development.
 Since the information provided in MIS reports is based on current data analysis, hence it
is considered suitable and material for determining the goal of an enterprise.
 MIS reporting includes the current market trend analysis and prediction of the future
trend. Thus, it is quite difficult for any company to neglect MIS and reporting.

 Problems Identification
  MIS report provides information related to every aspect of activities taking place in the
company. Hence, in case any problem arises in front of the management, MIS reports are
quite helpful in identifying the source of the problem. Also, MIS and reporting are really
useful in finding the solution to such an issue.

 Increases Efficiency
 The relevant information provided by MIS and reporting is utilized in formulating goals
and strategy of the company.
 The performance of the business can be assessed with the help of MIS reports. Hence,
MIS plays a vital role in increasing the efficiency of the company.

 Comparison of Business Performance

 The relevant business data and information of the company is stored and maintained in
the MIS database. Since the MIS database can be accessed at any time; hence, the current
performance of the firm can be compared with its previous year’s achievement to measure
the organization’s growth.

Disadvantages
 If MIS is not designed properly then, it is not useful for management.
 It is of no use, if uses do not have adequate knowledge of utilizing information available from
MIS.
 If the basic data provide in MIS is obsolete and outdated then, MIS is of no use.

Types of MIS Reports in ERP

MIS Reports are reports required by the management to assess the performance of the
organization and allow for faster decision-making.
The following types of MIS Reports in Tally ERP 9:
 Accounting Reports:
To obtain information on the financial position, operational performance and economic
activities of the business.
 Inventory Reports:
To manage the Inventory effectively since the actual status of stock items is obtained.
 Management Control Reports:
To utilise budgets, cost centre reports, scenario reports etc. for controlling activities.
 Financial Reports:
To determine the financial condition of an organisation as required by shareholders, creditors
and government units.

Some of the Financial Reports are as follows:

  Receivables: Bills receivable are those on which payment should be received in future date
This report exhibits all outstanding receivables invoice till due date.
 Payables: Bills payable are those bills which are due for payment at a future date. This report
exhibits all outstanding payables till future date.
 Cost Centre Reports: These are basically performance reports which provide different
perspectives to transactions.
 Ratio Analysis Report: This Report involves principal groups and principal ratios. It enables
the analysts to measure the liquidity position of the firm.
 Cash Flow Report: This report exhibits the inflow and outflow of cash during an accounting
period. It is useful for Non-Profit Organisations.
 Fund Flow Report: This report exhibits the movements in funds during accounting period. It
involves sources of funds and application of funds.

Trial Balance
Trial Balance is a statement summarizing the closing balance of all the ledger accounts,
prepared with the view to verify the arithmetical accuracy of ledger posting. In Trial balance, all the
ledger balances are posted either on the debit side or credit side of the statement.
The total of debit balance in trial balance should match with a total of credit balance, only then it is
said to be arithmetically accurate. Trial balance is a primary source for preparing various financial
statements such as Trading and Profit & Loss account, Balance sheet etc.

Features of Trial Balance:

 It is a summary of debit and credit balances which are extracted from various ledger
accounts. It is a summary of debit and credit balances.
 The motive behind the preparation of Trial balance is to establish arithmetical accuracy of the
transactions recorded in the Books of Accounts.
 Trial balance does not prove any arithmetical accuracy of accounts which can only be
determined by the audit.
 It is not an account. It is only a statement of account.
 It is not a part of the final statements.
 A Trial balance at the end of the accounting year but it can also be prepared anytime as and
when required like weekly, monthly, quarterly or half-yearly.
 It acts as a bridge between books of accounts and the Profit and Loss Account and Balance
sheet.
Methods of Trial Balance:
 Balance Method:
In this method, the balances of ledger accounts are taken to respective debit and credit
columns of the trial balance and then grand totals are taken out. The total of balances in the
debit column must be equal to the total balances in the credit column of the trial balance.
 Total Method:
 In this method, the totals of debit and credit sides of the ledger accounts are shown in
the trial balance. The sum totals of debit and credit columns of the trial balance must be
equal. This is less popular method.

 Total and Balance Method:

Under this method, the balance and total method of the trial balance are shown in the
same trial balance. This method divides the amount column between total and balance
methods. Both the methods have two columns of debit and credit. However, under each
method the total of debit and credit side should be equal.
Steps to view the Trial Balance in Tally ERP 9
 Gateway of Tally -> Display -> Trial Balance

 The Trial Balance does not include closing stock according to accounting principles.
 The group wise trial balance is displayed in Tally ERP 9 software.
 Press Shift+ Enter to view the next level detail of a group.
 Choose F1: Detailed to classify the grouped information or just categorize a group for further
detail.
 Choose F5: To Display Trial Balance ledger wise to list all ledgers and their closing balances.

Balance Sheet
 Balance Sheet is a list of the accounts having debit balance or credit balance in the ledger. On
one side it shows the accounts that have a debit balance and on the other side the accounts that have a
credit balance.
The purpose of a balance sheet is to show a true and fair financial position of a business at a
particular date. Every business prepares a balance sheet at the end of the account year.
A Balance Sheet may be defined as:
 "It is a statement of assets, liabilities and owner's equity (capital) on a particular date".
 "It is a statement of what a business concern owns and what it owes on a particular date".
What is owns are called assets and what it owes are called liabilities.
 "It is a statement which discloses total assets, total liabilities and total capital (owner's equity)
of a concern on a particular date".
Features:
 It is the last stage of final accounts.
 It is prepared on the last day of an accounting year.
 It is not an account under the double entry system - it is a statement only.
 It has two sides - left hand side known as Liability side and right-hand side known as Assets
side.
 The total of both sides is always equal.
 The balances of all asset accounts and liability accounts are shown in it. No expense accounts
and revenue accounts are shown here.
 It discloses the financial position and solvency of the business.
 It is prepared after the preparation of trading and profit and loss account because the net
profit or net loss of a concern is included in it through capital account.
Steps to view the Balance Sheet in Tally ERP 9
 Gateway of Tally -> Balance Sheet

 Select F1: Condensed/Detailed, it is used to display the summarized information.

 Select F2: Period, it is used to alter the Date of the Balance Sheet.
Differences between Trial Balance and Balance Sheet

[Link] Trial Balance Balance Sheet

1 It is prepared to verify the arithmetical It is prepared to disclose the true financial
accuracy of books of accounts position of the business
2 It is prepared with balances of all the It is prepared with the balances of assets
ledger accounts and liabilities accounts
3 It is not a part of final accounts It is an important part of final accounts
4 It is prepared before the preparation of It is prepared after the preparation of
final accounts Trading and P&L Account
Cash Flow Statement
A cash flow statement concentrates on the transactions that have a direct impact on cash. It
deals with the inflow and outflow of cash between two Balance Sheet dates. That is, it explains the
changes in cash position between the two periods.

Cash flow statements can also be used as receipts and payments statement. This is
particularly useful for businesses such as Non-Profit Organizations where receipts and payments
statements need to be generated.
Steps to view Cash flow statement
1. Go to Gateway of Tally > Display > Cash/Funds Flow > Cash Flow.
2. Press Alt+F2, change the period - From: 1-4-2018 to 31-3-2019. The Cash flow statement is
displayed as shown:

For Quarterly Cash Flow statement:

● Change Period by pressing F2: Period and set the period, e.g., 1-4-2018 to 30-06-2019.
● Select the option Auto Column from the button bar.
● You can also select Quarterly (or Monthly or any other period) from the list. The Cash
Flow screen appears as shown below:
Ratio Analysis
Ratio analysis is a powerful tool for financial analysis. A meaningful analysis of a financial
statement is made possible by the use of ratios. Ratios are a set of figures compared with another set.
The comparison gives an understanding of the financial position of a business unit. There are a
number of ratios which can be computed from a single set of financial statements.
The ratios to be computed depend on the purpose for which these ratios are required. A single
ratio may sometimes give some information, but to make a comprehensive analysis, a set of inter-
related ratios are required to be analysed.
Display of Ratio Analysis in Tally ERP 9:
 Gateway of Tally > Ratio Analysis > Press Enter

Day Book
The Day Book lists all transactions made in a particular day and by default displays the
last voucher entry date of a regular voucher. It could also be set up to list all the transactions
made over a certain period. Transactions include all financial vouchers, reversing and
memorandum journals as well as inventory vouchers.

In Tally. ERP 9, the Day Book is by default displayed for the current date (as on the last date
of voucher entry). However, you may specify the required period, as per your requirements.
Steps To view the Day Book

1. Go to Gateway of Tally > Display > Daybook. The Day Book will appear as shown
below:

2. Click F2: Period to change the period for which the Day Book is displayed.
3. Click F4: Change Voucher to view Day Book for a particular voucher type.

4. Select the required Voucher Type to display. The screen appears as shown below:
Receipts and Payments
Receipts and Payments Account is a report of cash and bank transactions during a period. It is
used in place of an income and expenditure statement.
Features
 It is a consolidated summary of cash book, prepared for the required period.
 It starts with opening balance of cash and bank, and ends with closing balance of cash and
bank.
 It does not take into account outstanding receivables and payables.
 It may be of capital or revenue nature, and relating to the current, previous or subsequent
year, so long as they are actually received or paid.
The Receipts and Payments account displays information based on default primary groups. It is
updated with every cash or bank transaction or voucher entry.
1. Go to Gateway of Tally > Display > Receipts and Payments.
The Receipts and Payments account appears as shown below:

The Receipts & Payments account is generated and updated right from the date of
opening of books until the date of last entry.

2. Press F2: Period to change the period as required.

3. Select the required group and press Enter to go to Receipts and Payments
Summary reports, and further drill down to go to Ledger Monthly Summary, ledger
vouchers, and finally to the voucher alteration mode.
Note: The Receipts & Payments account is displayed according to the configuration of
settings in the F12: Configure.

4. The Receipts & Payments A/c, by default is in horizontal form. However, you may
configure the same to view in Vertical form by enabling it in F12: Configure . You can
view additional information or toggle to another report using the options available in the
Button Bar.

Purchase Register
 A Purchase Register displays the information on the periodic purchases of a business
concern. Purchase register helps in analysing the details of movement of purchased goods to
various godowns, on the basis of which the stock movement at each godown is determined.

Purchase returns made during a year can also be traced. The parties to whom the purchase
returns have been made and the causes thereof can be analysed to draw conclusions on the
supplier and the quality of purchases made.
Steps to View:
 Go to Gateway of Tally
 Display
 Account books
 Purchase Register.
1. The Purchase Register appears as shown:

2. You can configure the report by pressing Ctrl+F12 to view the following information.

3. In the Purchase Register, select the required month and press Enter.
4. Click F5: Columnar and set the options as required, to view the purchase columnar register.
Set the options Show supplier invoice number and Show supplier invoice date to view these
details in separate columns.

Sales Register
 Sales Register displays the monthly summary of sales transactions and closing balances. The
list of transactions pertaining to each month can be viewed by selecting that month. You can change
the display according to the information required. You can view this report in browser.
The period of the report and the content details can be modified. Columnar periodic reports can be
generated using Alt+N: Auto Column for different periods as shown by the columnar details list.
You can also compare similar data of two or more companies stored in the same data directory.
With the sales register you can:
 Analyse the periodic turnover using the option F2: Period.
 Compute the periodic taxes on such turnovers.
 Trace the errors made while recording the transactions.
 Analyse the sales returns during the year and take timely action to remove undesirable
causes.
 Analyse the performance of godown, salesperson, sales area, and so on, with the help of cost
centre and cost category report.
To view Sales Register:

1. Go to Gateway of Tally > Display > Accounts Books > Sales Vouchers.

2. Use F12: Configure to display the monthly summary according to your requirements.
3. Press the button F5: Quarterly, to view the summarized quarterly figures.
4. Use the options in F12: Configure to view the details of percentages, averages and so
on.

Bills Receivable
 A bill of exchange can be either bills receivable or bills payable. When a drawee accepts a
bill and sends it back to the drawer, it becomes a bills receivable to the drawer as money is
receivable on the bill. Therefore, it becomes an asset to him. On the other hand, it becomes a bill
payable to the drawee if money is payable by him on the bill, in which case it is a liability for
him.

The drawer can make use of the bill in one of the following ways:
1. Retain the bill till the date of maturity and collect the money from the drawee.
2. Endorse the bill to his creditor.
3. Discount the bill with the banker.
4. Send the bill to the banker for collection.
View Bills Receivables:

Bills receivable is a bill of exchange on which payment is expected to be received at a later

date. Bills receivable report in Tally. ERP 9 displays all the outstanding receivables during a
specified period.
1. Go to Gateway of Tally >Display >Statements of Accounts > Outstanding >
Receivables.

The Bills Receivable screen is displayed as shown below:

2. Select F6: Age wise from the button bar. For methods of ageing either select the option
‘Ageing by bill date’ or ‘Ageing by due date’. Set the age periods needed for the report.
3. Select F7: Bill wise details will get if we required.

Bills Payable
Bills payable is a bill of exchange due for payment at a future date. Bills payable report in Tally.
ERP 9 displays all the outstanding payables during a specified period.
View Bills Payable
 Go to Gateway of Tally>Display>Statements of Accounts > Outstanding
>Payables.

 Select F6: Age wise from the button bar. For methods of ageing either select the
option ‘Ageing by bill date’ or ‘Ageing by due date’. Set the age periods needed for
the report.
 Select F7: Bill wise details will get if we required.