How to Import Bank Statement in Tally ERP 9

In the world of accounting, manual data entry can be tedious and error-prone. That’s why automating bank statement imports is a game-changer for businesses using Tally ERP 9. If you’re wondering how to import bank statement in Tally ERP 9, this detailed guide will walk you through every step — from prerequisites to reconciliation.

Why Import Bank Statements in Tally ERP 9?

Importing bank statements in Tally ERP 9 reduces time, minimizes human errors, and improves efficiency during bank reconciliation. It is especially beneficial for small to medium businesses that handle frequent transactions.

Prerequisites Before Importing

Before you begin, ensure the following are in place:

Tally ERP 9 installed and licensed
Bank statement in Excel or XML format
Internet connectivity (for bank feeds, if applicable)
Banking configuration set up in Tally

Pro Tip: Use Tally’s Import Data > Bank Statement feature for seamless Excel or XML uploads.

Supported Formats for Import

Format	Supported by Tally?	Notes
Excel (.xls/.xlsx)	Yes	Common format for most banks
XML	Yes	Preferred for automated mapping
CSV	Not directly supported	Needs conversion

Step-by-Step Guide: How to Import Bank Statement in Tally ERP 9

Step 1: Enable Banking Features in Tally

Go to Gateway of Tally > F11 > Features.
Under Accounting Features, set Enable Banking Features to Yes.

Step 2: Set Up Bank Ledger

Navigate to Gateway of Tally > Accounts Info > Ledgers > Create.
Name the ledger according to your bank name (e.g., HDFC Bank).
Select Bank Accounts under Group.
In the ledger creation screen, ensure Set up bank details is enabled.
Fill in your IFSC code, Account Number, and Bank Name.

Step 3: Download the Bank Statement

Visit your bank’s online portal.
Download your statement in .xls, .xlsx, or .xml format.
Save it in an accessible folder.

Step 4: Import the Bank Statement

Go to Gateway of Tally > Banking > Bank Reconciliation.
Select the bank ledger you created earlier.
Press Alt+B or click on Bank Statement (Alt+B).
Choose the correct file format (Excel or XML).
Navigate and select your downloaded file.
Map the fields if importing Excel manually.
Confirm the import.

Note: For Excel files, ensure columns like Date, Particulars, Amount are in correct order.

Reconcile Bank Statement with Tally

After importing:

Tally will auto-match entries based on date and amount.
You can manually reconcile unmatched entries.
Save the reconciliation after verification.

Troubleshooting Common Errors

❌ File Format Not Supported

Solution: Convert to XML or proper Excel template.

❌ Field Mapping Incorrect

Solution: Ensure your Excel file has headers like Date, Narration, Debit, Credit.

❌ Mismatched Entries

Solution: Check voucher dates and correct them before reconciling

Benefits of Importing Bank Statements

Saves 80% of time in manual data entry
Enhances accuracy in bank reconciliation
Easier auditing and reporting
Seamless monthly closings

Using Tally’s Auto Bank Reconciliation (Tally.NET Required)

Tally also supports Auto Bank Reconciliation for certain banks using the Tally.NET subscription:

Download bank feeds from supported banks directly.
Auto-mapping reduces manual effort.
Great for high transaction volumes.

Import Bank Statement Using XML – Advanced Users

If you’re comfortable with XML, use it for better control and automation.

Sample XML Structure

xml

CopyEdit

<PARTICULARS>Client Payment</PARTICULARS>

</BANKTRANSACTION>

</ENVELOPE>

Then import via:

Gateway of Tally > Import Data > Bank Statement (XML)

Location-Based Considerations

If you are in India, ensure GST is correctly configured while importing statements related to vendor/customer payments.

For users in UAE or Saudi Arabia, VAT handling in Tally ERP 9 should also be reviewed during reconciliation.

Check our VAT Setup in Tally for GCC guide for region-specific help.

Frequently Asked Questions

Q: Can I import a PDF bank statement into Tally ERP 9?

A: No. PDF is not supported directly. Convert to Excel or XML.

Q: Is Tally Prime the same as Tally ERP 9?

A: No. Tally Prime is a newer version with enhanced features. Learn more here.

Final Thoughts

Understanding how to import bank statement in Tally ERP 9 is a powerful way to streamline your financial workflows. Whether you’re using Excel or XML, Tally makes it relatively simple once you understand the process. Automating this step can save hours every month and reduce reconciliation errors.