TA/DA Management in Tally Prime – Can TA/DA Software Be Implemented? Full 2025 Guide

Published on: 28-11-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Managing TA/DA (Travel Allowance and Daily Allowance) is essential for many businesses, especially those with field teams, sales executives, service engineers, delivery staff, and employees who travel for office work. Companies that use TA/DA software often ask:

“Can we implement similar TA/DA management inside Tally Prime?”

The short answer is:

✔ YES — TA/DA can be implemented in Tally Prime, but with limitations.

Tally doesn’t have a built-in TA/DA module like dedicated software, but you can manage TA/DA using ledgers, cost centres, vouchers, payroll, or custom add-ons.

This article explains what TA/DA software does, how Tally Prime handles TA/DA, what is possible, what is not, and how to create a complete TA/DA workflow inside Tally.

 What Is TA/DA Software?

TA/DA software is a digital system used for:

• Travel reimbursements
• Daily allowance (per day DA)
• Hotel, food, taxi, fuel bills
• KM-based travel claims
• Outstation visit expenses
• Approval workflow
• Employee-wise reporting

It automates everything from claim submission to approval and final reimbursement.

Tally Prime, however, is a financial accounting + inventory + compliance software, not a TA/DA automation tool. Yet many TA/DA processes can still be implemented manually inside Tally with correct configuration.

Can We Implement TA/DA in Tally Prime?

✔ YES – You can implement TA/DA with manual and semi-automated systems.

Using combinations of:

• Cost Centres (employee-wise tracking)
• Cost Categories (department tracking)
• Expense Ledgers
• Journal/Payment Vouchers
• Attachments/Document upload
• Payroll module (advanced)

Tally can manage TA/DA data effectively.

❌ NO – Tally cannot auto-calculate TA/DA like dedicated software.

Tally cannot:

• Calculate per-day DA automatically
• Compute KM-based reimbursement automatically
• Generate approval flows
• Accept mobile photo uploads natively
• Provide auto alerts for travel claims

These require third-party add-ons or TA/DA software integrations.

 What TA/DA Features Can Be Done Inside Tally Prime?

Here is a practical breakdown:

So Tally is good for accounting, but not for automation.

 How to Implement TA/DA in Tally Prime (Step-by-Step Guide)

Below is a complete setup you can use immediately.

H2: Step 1 – Enable Cost Centres

1. Go to F11 → Accounting Features
2. Enable Cost Centres → YES
3. Enable Cost Categories → YES (if needed)

This allows employee-wise tracking of TA/DA.

 Step 2 – Create Cost Centres for Employees

Go to:
Gateway → Create → Cost Centre

Create entries like:

• Sales Team → Rohan
• Service Team → Akshay
• Marketing → Neha
• Support → Ravi

Each employee becomes an individual cost centre.

 Step 3 – Create TA/DA Expense Ledgers

Create the following:

Travel Allowance (TA)

• Under: Indirect Expenses
• Cost Centre: YES

Daily Allowance (DA)

• Under: Indirect Expenses
• Cost Centre: YES

Conveyance Reimbursement

• Under: Indirect Expenses
• Cost Centre: YES

Hotel/Food/Outstation Expenses

(Optional for detailed tracking.)

 Step 4 – Enter TA/DA Through Vouchers

Method 1: Journal Voucher (F7)

Useful when claim is approved but not yet paid.

Travel Allowance A/c   Dr  ₹1,200

Daily Allowance A/c    Dr  ₹800

   To TA/DA Payable – Rohan     ₹2,000

Select Cost Centre = Rohan.

Method 2: Direct Payment Voucher (F5)

For immediate reimbursement:

Travel Allowance A/c   Dr  ₹1,200

Daily Allowance A/c    Dr  ₹800

   To Bank/Cash A/c           ₹2,000

Select the employee as cost centre.

Step 5 – Attach Supporting Documents

Tally Prime allows you to attach:

• Fuel bills
• Hotel bills
• Food receipts
• Taxi/Bus/Train tickets
• Outstation bills

This helps during audits and approval checks.

 Step 6 – View TA/DA Reports in Tally

Go to:

Display More Reports → Cost Centres → Ledger Breakup

Here you can see:

• Employee-wise TA/DA
• Month-wise summaries
• Total reimbursed
• Pending payable amounts
• Department-wise totals

This acts as your TA/DA MIS dashboard inside Tally Prime.

 When Should You Use Dedicated TA/DA Software Instead of Tally?

Choose specialized TA/DA software when you need:

✔ Auto calculation

• Per day DA
• KM-based travel
• Fuel compensation

✔ Approval workflows

Manager → HR → Accounts

✔ Mobile photo uploads

Employees upload bills instantly.

✔ GPS-based travel tracking

For sales or field staff.

✔ Advanced analytics

Budget vs actual travel expense.

✔ Automatic posting into Tally

Through API integration.

Tally alone cannot perform these advanced functions.

 Final Conclusion

Yes, TA/DA can be implemented in Tally Prime, and many companies already manage travel and daily allowance using:

• Cost Centres
• Expense Ledgers
• Proper voucher entries
• Document attachments

However, Tally Prime cannot fully replace a dedicated TA/DA software because it lacks automation, approval workflows, app-based submissions, and policy enforcement.

✔ Use Tally Prime for TA/DA accounting

✔ Use TA/DA software for automation + mobile app + GPS + approval workflow

When combined (via integration), you get the best of both worlds — automation + accurate accounting.

H2: FAQs

Q1. Can Tally calculate per-day DA automatically?

No, you have to enter it manually.

Q2. Can employees upload claims through mobile in Tally?

No, this requires third-party TA/DA software.

Q3. Can TA/DA software integrate with Tally?

Yes, many tools integrate with Tally through API or data sync.

Q4. Is cost centre necessary for TA/DA in Tally?

Yes, cost centres allow employee-wise tracking.

Q5. Can we build a custom TA/DA module for Tally?

Yes — using a Tally add-on or customization.

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