The TallyPrime Edit Log Feature for Audit Trail — How it Works?
The TallyPrime Edit Log Feature for Audit Trail — How it Works?
Tally Prime is one of the most popular accounting software available. It is backed by many special and unique features that allow you to keep track of the input data as well as the changes that you make to the information at any future date. One of the unique features that come with the TallyPrime software is the TallyPrime Edit Log.
Its main function is to monitor actions made to the records by different users along with the specific time when the changes were made. A feature of Edit Log in TallyPrime makes the tracking of edits easy. The Log shows what changes you make to customer and vendor lists, inventory items, or the products you have sold.
A TallyPrime software, through its Edit Log feature, also provides an audit trail benefit that tracks every change made in the data stored in the Tally software. In this article, we will discuss the various aspects of the TallyPrime Edit Log software tool and how you can benefit from it for the maintenance and tracking of your business records.
Are Audit Trail and Edit Log in TallyPrime the same?
Audit Trail is interchangeably known as an Edit Log and it means the record of all activities of business transactions. It records in form of a log which is mainly used for tracking the record’s creation, modification, and deletion. This helps auditors, in particular, to check the details of such operations.
What is Edit Log in TallyPrime?
The Edit Log is a feature that has been introduced in TallyPrime Edit Log Release 2.1 and TallyPrime Release 2.1. It allows you to keep track of all the changes you have made to the data as well as every business activity transaction. Through this feature of an Edit Log, you are allowed to have enhanced internal control over financial transactions with accurate stored data for easy access and maintenance. It allows data alterations in the form of financial, internal, or even functional.
The Edit Log feature offers you the following:
- Regular control checks of activities such as alteration, creation, and deletion of any transactions and masters in the data of the company.
- Auditing account books is simple.
- Make prudent and informed judgments while working with the data of the company.
Features of Audit Trail (Edit Log) in TallyPrime
The Edit Log feature benefits your business by helping keep track of changes in transactions of the company’s data. The issued notification of the Ministry of Corporate Affairs seeks to mandate the feature of an audit trail while maintaining the books of accounts for the said benefit of smooth internal control.
Below is the range of features that the Edit Log in TallyPrime for audit trail has to offer:
1. Monitor Transactions and Masters through the Edit Log
The feature of an audit trail through the Edit Log allows monitoring of activities like alteration, creation, and deletion of recorded transactions in the TallyPrime software.
2. Tracking Masters Activities
With the audit trail feature, you can track the activities of masters, such as ledgers, stock items, group items, etc. Additionally, you can also track modified data in the masters of the company.
3. Track and Identify the Time and Users who made Changes
Since simple tracking of transaction activities is insufficient, it is essentially necessary to identify and know who made changes to the records and during which specific timing. Edit Log offers this feature of tracking by collecting user details about the creation, modification, and deletion.
4. Easy Comparison of Version
One unique advantage of the Edit Log feature in TallyPrime is that it allows you to compare prior versions and see which elements the users have altered. Therefore, an audit trail gives you the overall analysis and impacts of such modifications.
5. Sort and Filter Generated Reports
With the Edit Log feature, you can sort and filter the altered or deleted transaction reports such as daybooks, voucher registers, etc.
6. All-Time Enabled Edit Log Feature
The separate release of Tally through the TallyPrime Edit Log version comes with a default feature of Edit Log without an option to disable it. As per the notification of the MCA, the Edit Log feature is set to become mandatory for companies that fall under the specifications of the MCA rule.
Audit Trail (Edit Log) — Applicability for Businesses
As per the latest MCA notification, the new rule for the implementation of an audit trail in accounting software is set to begin on 1st April 2023. Companies that use accounting software for record-keeping of their business transactions must mandatorily have a feature of Audit Trail. It creates an edit log for all the transactions with specified dates for the changes.
For the implementation of the said notification, it is required that the companies ensure their existing accounting software is inbuilt with an Audit Trail in TallyPrime. Whereas, in the case of those businesses, as mentioned by MCA, where the current accounting software is without this feature. The same needs to be shifted to the type of accounting software that is backed by the audit trail feature.
Now, coming to the key area of this section, the applicability of the audit trail (edit log) is confined to only a few businesses that come under the purview of the Ministry of Corporate Affairs (MCA). That means if your company is governed and regulated by the guidelines of the MCA, then, generally, the rule of audit trail feature would also apply to the business you run.
The following companies will apply the new amendment rule as prescribed by the MCA under the provisions of the Companies Act of 2013:
- Public and Private Limited Companies
- One-Person Companies (OPCs)
- Government-owned Companies
- State Government Companies
- Not-for-Profit Organisations
- Nidhi Companies
Furthermore, below are the lists of such businesses that are not mandatorily required to have the feature of an audit trail in their accounting software. They are:
- Proprietorship Businesses
- Partnership Firms
- Limited Liability Partnership Business
Benefits of Using Audit Trail (Edit Log)
Businesses have so many benefits from applying the audit trail rule in their accounting system. Some of the reasons why the Edit Log in TallyPrime is beneficial are:
- Having the feature of an audit trail rule ensures the log of all financial events like purchases, sales, and expenses, which in turn helps in tracking any unusual flaws in the system.
- Businesses have the option to analyze every activity in the transaction records of the company.
- The Edit Log feature brings forth more transparency with a reduction of data manipulation to the maximum.
- Flexible leveraging as per the circumstances of the business.
- High protection and security for the company from fraud and unexpected liabilities.
- In times of any legal trouble, the audit trail will serve as evidence of activities or transactions done lawfully.
- It enhances the profile image of the company in the market before the investors and customers.
- It helps businesses to assess and take such risks as they can afford and manage.
TallyPrime Edit Log and TallyPrime — Difference in Features
All the key components and functionalities of an Audit Trail in TallyPrime have been discussed thus far. The knowledge of which TallyPrime release will best serve your company’s demands, however, is sufficient if you engage in these kinds of operations that involve large numbers of transactions.
Though, both the releases of the TallyPrime are backed by similar features. The TallyPrime Edit Log release comes with the default-enabled feature of an Edit Log without the option for its disabling mode. Whereas the TallyPrime release has both the options of Enable/Disable Edit Log feature.
Now, let’s dive into the features of each of the releases of the TallyPrime software.
- TallyPrime Edit Log software is beneficial and necessary in the case of such businesses which are under the statutory purview of MCA or in other matters related to internal control. While on the other hand, the TallyPrime software helps to keep track of records by way of maintaining trails for internal audits or viewing logs at spaced intervals.
- The disabling of the Edit Log feature is not available in the case of the TallyPrime Edit Log. On the other hand, the TallyPrime Edit Log feature can be enabled or disabled whenever you need it.
- In the former release of the TallyPrime software, changes to the activities in transactions and masters are automatically tracked and recorded with time stamps. While in the latter release of the TallyPrime, there is no automated track record of such activities in the transactions.
- Both the releases of the Tally, that is, TallyPrime Edit Log and TallyPrime, have similar features to help operate your business smoothly. However, the default Edit Log feature in TallyPrime meets the statutory requirement of Audit Trail.
- TallyPrime Edit Log is mandatory for companies that fall under the statutory regulations of the Ministry of Corporate Affairs. Whereas TallyPrime is for any day-to-day operations of the business by leveraging the feature of an Edit Log whenever in need.
TallyPrime Edit Log vs. TallyPrime — Comparison Table
In this section, let’s summarise the features of both the releases of the TallyPrime.
|Points of Difference
|TallyPrime Edit Log Release 2.1
|TallyPrime Release 2.1
|Features and Functions
|There is no unique feature about the TallyPrime Edit Log release when compared to the TallyPrime.
|Except for the fact that it is not legally necessary, TallyPrime Release 2.1 has the same features as TallyPrime Edit Log.
|Enabled Edit Log Feature
|In the TallyPrime Edit Log software, the edit log feature is already enabled by default.
|The edit log feature for the TallyPrime can be enabled by users whenever needed.
|Disabling the Feature of an Edit Log
|No. The user using the TallyPrime software has no option of disabling the feature of an Edit Log.
|Yes. The option of enabling and disabling the Edit Log feature is available for the TallyPrime release.
|Any Statutory Requirement
|Accounting software with the edit log feature must be used by all businesses that are governed and regulated by the requirements of the Companies Act of 2013 and fall under the jurisdiction of the MCA.
|Individuals who need to manage their business operations on a day-to-day basis can incorporate the use of the TallyPrime without mandatory statutory requirements.
|Automatic Record Tracking
|In TallyPrime Edit Log, changes to the activities in transactions and masters are automatically tracked and recorded with time stamps.
|There is no automated track record of activities in the transactions.
|The use of the TallyPrime Edit Log software is necessary in the case of mandatory requirements by the MCA and for internal control purposes.
|TallyPrime’s purpose is to keep track of records by way of maintaining trails for internal audits or viewing logs at spaced intervals.
How to Manage Audit Trail in TallyPrime?
There’s no complicated way of managing the feature of an audit trail. Its management is as simple as any other installation of apps. What you need to do is just take action in two simple basic steps and the TallyPrime software is ready to operate.
The first step is to Download and Install the TallyPrime Edit Log Release 2.1, and the second step is to just load all the data of the company. And, done! Also, note that whenever edits or changes are made, these are automatically tracked and recorded on logs.
Follow the steps below to know the TallyPrime Edit Log download process
- Download and Install TallyPrime Edit Log Release 2.1 from the official Tally website
- Load the data of the company
- Press Alt+K for Company Menu
- Next, press F12 for Configuring and Enabling ‘Set Edit Log Applicability’
- Then, when you go to the screen displaying the alterations for the company, switch ‘Enable Edit Log’ to ‘Yes’
- In the case of new companies, you may start with the F12 setup.
The TallyPrime has a special feature of an Edit Log that is not to be found anywhere else in any other products. It is an extremely useful tool for auditing while keeping track of the changes made to the data in a significantly detailed manner. In other words, this unique feature of an Edit Log allows you to see the changes made by any particular person along with the detailed timing when such changes were made. Therefore, the Edit Log feature of the TallyPrime Edit Log is an excellent essential feature for any business that needs to maintain accurate records.
You can use the Biz Analyst application to manage your business effectively. It syncs with Tally data making it easy to access even if you’re offline or on the go. You can manage the accounts, create ledger entries, access business reports, and more to keep your business on the right track.