Bank Statement to Tally XML: Convert & Import Bank Transactions in TallyPrime (Step-by-Step)

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If you’re searching for “bank statement to Tally XML”, you likely want to convert a bank statement (Excel/CSV) into Tally XML so you can import transactions into TallyPrime / Tally.ERP 9 without manual entry. This method helps businesses and CAs save time, reduce errors, and keep bank books updated faster.

Below is a clear guide on how the conversion works, what fields are required, and how to import the XML into Tally.

Why Convert Bank Statement to Tally XML?

Converting a bank statement to XML helps you:

Import bulk bank entries in minutes

 Avoid manual voucher entry

 Maintain accurate bank ledger posting

 Speed up reconciliation (Bank Reco)

 Handle high-volume transactions (collections, payments, UPI, NEFT, IMPS)

What You Need Before Converting to XML

Before you generate the XML file, keep these ready:

1) Bank Statement File

Usually available in:

Excel (.xlsx)

CSV (.csv)

PDF (PDF requires conversion to Excel first)

2) Required Columns (Recommended)

Your statement data should ideally have:

Date

Narration / Description

Amount

Dr/Cr (Debit/Credit) OR Withdrawal/Deposit

Cheque/UTR/Reference No. (if available)

3) Tally Masters Readiness

In Tally, ensure:

Bank Ledger exists (e.g., HDFC Bank, SBI Bank)

Party ledgers exist (or decide to post to Suspense / Bank Charges / Sales / Purchase ledgers)

Bank Statement to Tally XML: Conversion Flow
Step 1: Clean Your Bank Statement

Keep one header row

Remove blank lines and totals

Use a consistent date format (dd-mm-yyyy recommended)

Ensure debit/credit is clear

Step 2: Decide the Voucher Type in Tally

For bank transactions, commonly used vouchers are:

Receipt (Money received in bank)

Payment (Money paid from bank)

Contra (Transfer between cash and bank / bank to bank)

Journal (Charges, adjustments, interest)

Step 3: Map Columns to Tally XML Fields

Typical mapping:

Bank Statement Column    Tally XML Field / Usage
Date    Voucher Date
Narration    Narration
Deposit/Credit    Receipt Amount
Withdrawal/Debit    Payment Amount
Ref/UTR    Reference in narration or bill ref
Bank Ledger    Ledger Entry (Bank)
Party Ledger    Ledger Entry (Party/Expense/Income)
Step 4: Generate Tally XML

Your converter tool (or script) will generate XML vouchers like:

One voucher per transaction

Two ledger lines:

Bank Ledger (Dr/Cr)

Party/Expense/Income Ledger (Opposite entry)

Important: Tally XML must follow Tally’s import structure; otherwise you’ll see Import Exceptions.

How to Import XML in TallyPrime
 TallyPrime Steps

Open your company in TallyPrime

Go to Gateway of Tally

Press Alt + O (Import)

Select Masters / Vouchers (choose Vouchers for transactions)

Choose Import File → Select your generated .xml

Set Import Options:

Behaviour: Create / Alter

Import and review Exceptions if shown

Common Errors While Importing Bank Statement XML in Tally
1) “Masters Missing”

 Fix: Create required ledgers before import (or map unknown entries to Suspense ledger)

2) Date Format Error

 Fix: Use correct date format and ensure XML date tags are valid

3) Wrong Debit/Credit Posting

 Fix: Verify Dr/Cr logic (Bank ledger entry must reflect actual bank movement)

4) Duplicate Import

 Fix: Use unique voucher numbers or set import rule to ignore duplicates

Best Practice for CA Firms & Businesses

Create a Suspense / Bank Clearing ledger for unknown narrations

Always import month-wise to avoid duplicate confusion

Keep a backup of company data before bulk import

Use TallyPrime’s Bank Reconciliation after import for matching

XML import works without TSS, but advanced connected banking features may require active services depending on your edition and setup.

Disclaimer

Bank statement formats differ across banks. The XML structure and ledger mapping must be validated before import. Always take a backup before importing bulk transactions.

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