How to Import Excel Data into Tally Prime Step-by-Step: Complete Guide with Formats, XML Mapping, Ledger Import, and Troubleshooting

—

by

Himanshu
in , ,

Tally Prime is one of the most widely used accounting software tools in India for managing business transactions, inventory, ledgers, GST, and financial reports. Many businesses maintain their transactional data initially in Excel because it is flexible, fast, and easy to use. However, manually entering every entry into Tally Prime can consume a lot of time and increase the chances of errors.
To solve this, Tally Prime offers powerful import features that allow users to bring Excel data directly into Tally using XML formats.

In this article, we will explain the complete process of importing Excel data into Tally Prime, including ledger import, voucher import, stock item import, mapping fields, and common errors with their solutions.

This detailed guide is designed for accountants, business owners, Tally users, data entry operators, and MIS professionals.

Why Import Data into Tally Prime from Excel

Before learning the import process, it is important to understand why businesses rely so much on Excel-to-Tally automation.

Benefits

  1. Saves 60 percent time in data entry
  2. Reduces manual errors
  3. Ensures accurate accounting
  4. Helps businesses migrate old records
  5. Useful for bulk entries
  6. Perfect for GST sales-purchase upload
  7. Allows importing ledgers, stock, and vouchers

According to industry data, nearly 72 percent of SMEs prefer maintaining draft entries in Excel before importing into Tally.

Types of Data You Can Import into Tally Prime from Excel

Tally Prime allows importing almost all major accounting components.

Data TypeImport Possible
Ledger MastersYes
Stock ItemsYes
Cost CentresYes
Employee MastersYes
Sales VouchersYes
Purchase VouchersYes
Receipt/Payment VouchersYes
Journal VouchersYes
Inventory VouchersYes
Opening BalancesYes

This makes Tally Prime extremely powerful for businesses moving from Excel-based systems to digital accounting.

Understanding Tally XML Format

Tally does not import Excel files directly. It first converts Excel data into an XML format that Tally can understand.

Excel File → XML Format → Import into Tally Prime

XML stands for Extensible Markup Language, and Tally uses this structure to read voucher entries, ledger names, inventory details, and opening balances.

Basic XML Example Structure: <ENVELOPE> <HEADER> … </HEADER> <BODY> <IMPORTDATA> <TALLYMESSAGE> <LEDGER> … </LEDGER> </TALLYMESSAGE> </IMPORTDATA> </BODY> </ENVELOPE>

Each data type follows its own XML structure, which must be correctly mapped.

Step-by-Step Process: How to Import Excel Data into Tally Prime

Below is the complete method, including preparation, XML conversion, and importing into Tally.

Step 1: Prepare Excel File Correctly

Your Excel must be clean, structured, and consistent. These three rules must be followed:

Rule 1: Avoid Blank Rows

Tally will not read inconsistent data.

Rule 2: Use Correct Headings

For example, Ledger Import should have:

FieldExample
Ledger NameRam Traders
Group NameSundry Debtors
Opening Balance45000

Rule 3: Keep Formats Consistent

For example:
Date should be in DD-MM-YYYY or DD/MM/YYYY only.
Amount should be numeric only.

Step 2: Convert Excel Data into XML

Tally Prime only imports XML files.
To convert Excel to XML, you need a structured XML template.

Example XML structure for ledger import: <TALLYMESSAGE> <LEDGER NAME=”Ram Traders”> <PARENT>Sundry Debtors</PARENT> <OPENINGBALANCE>45000</OPENINGBALANCE> </LEDGER> </TALLYMESSAGE>

For voucher import, use voucher tags: <VOUCHER VCHTYPE=”Sales” ACTION=”Create”> <DATE>20240115</DATE> <NARRATION>Sale to Ram Traders</NARRATION> <LEDGERNAME>Ram Traders</LEDGERNAME> <AMOUNT>15000</AMOUNT> </VOUCHER>

Your XML file must follow Tally’s structure.

Step 3: Enable Import Options in Tally Prime

In Tally Prime:

Go to:
Gateway of Tally → Import Data → Masters / Vouchers

You will see two main options:

  1. Import Masters
  2. Import Vouchers

Select the option based on what you are importing.

Step 4: Choose XML File Location

Tally will ask for:

Name of XML file:
Enter full file name along with .xml extension.

For example:
ledgerimport.xml
voucher_sales.xml
stockitems.xml

Step 5: Select Import Behaviour

You must choose one of the following:

  1. Modify All
  2. Combine Duplicates
  3. Ignore Duplicates

Most businesses use Combine Duplicates.

Step 6: Complete Import

After import:

Tally displays a message:
Data Imported Successfully

If any errors occur, Tally will generate an error file.
You can open it to see which line caused the issue.

Importing Ledger Masters from Excel

Ledger imports are the most common.
Excel structure should be like:

FieldExample
Ledger NameA1 Suppliers
GroupSundry Creditors
Opening Balance85000

XML Structure for Ledger Import

<TALLYMESSAGE> <LEDGER NAME=”A1 Suppliers”> <PARENT>Sundry Creditors</PARENT> <OPENINGBALANCE>85000</OPENINGBALANCE> </LEDGER> </TALLYMESSAGE>

After generating XML, import via:
Gateway of Tally → Import Data → Masters

Importing Stock Items from Excel

Excel structure:

FieldExample
Stock NameUSB Cable
GroupElectronics
Opening Qty120

XML Structure: <STOCKITEM NAME=”USB Cable”> <PARENT>Electronics</PARENT> <OPENINGBALANCE>120</OPENINGBALANCE> </STOCKITEM>

Importing Sales Vouchers from Excel

Excel Structure:

FieldExample
Date15-01-2024
LedgerRam Traders
ItemUSB Cable
Quantity5
Rate300

XML Voucher Structure: <VOUCHER VCHTYPE=”Sales” ACTION=”Create”> <DATE>20240115</DATE> <NARRATION>Sales Entry</NARRATION> <LEDGERNAME>Ram Traders</LEDGERNAME> <AMOUNT>1500</AMOUNT> <INVENTORYENTRIES.LIST> <STOCKITEMNAME>USB Cable</STOCKITEMNAME> <ACTUALQTY>5</ACTUALQTY> <RATE>300</RATE> <AMOUNT>1500</AMOUNT> </INVENTORYENTRIES.LIST> </VOUCHER>

Common Errors During Import and How to Fix Them

Problem: Ledger not found
Solution: Ledger must be present in Masters or included in same XML file.

Problem: Date format not accepted
Solution: Use YYYYMMDD for vouchers.

Problem: Group does not exist
Solution: Ensure parent group is already created.

Problem: Incorrect decimal or symbol
Solution: Remove commas, spaces, or currency symbols.

Problem: Item missing in voucher
Solution: Create item in Masters before importing voucher.

More than 60 percent import issues come from formatting errors in Excel.

Tips for High-Accuracy Import

  1. Avoid merged cells in Excel
  2. Do not keep extra spaces in names
  3. Use clean data validation
  4. Test with 5 records before full import
  5. Keep backup of Tally company before importing
  6. Keep XML tags clean and properly closed
  7. Write date as text to avoid format issues

These practices help prevent rejections during import.

Advanced Import: Using TDL for Excel Upload

Some companies customize their Tally using TDL (Tally Definition Language) to create direct Excel import options.
This allows:

Direct XLS import
Item-wise mapping
GST invoice import
Excel-to-voucher automation

But custom TDL depends on business requirements.

Conclusion

Importing Excel data into Tally Prime is one of the most effective ways to automate accounting processes. Through proper formatting, XML conversion, and accurate mapping, businesses can save hours of manual entry and ensure error-free accounting. Whether you need to import ledgers, stock items, or bulk sales vouchers, Tally Prime provides a powerful import engine that supports large datasets and streamlines the workflow.

Once you master the XML structure and Excel formatting, importing data becomes a smooth and time-saving process.

Disclaimer

This article is for educational purposes only. All examples, XML structures, values, and formats are illustrative and created solely to explain the process of importing Excel data into Tally Prime.