Maintaining a reliable audit trail is no longer optional for Indian businesses. With the Ministry of Corporate Affairs (MCA) mandating audit trails in accounting software from April 1, 2023, businesses need a robust mechanism to track every change made in their books. TallyPrime Edit Log is precisely that mechanism -- a comprehensive feature that records every modification to your financial data, ensuring transparency and regulatory compliance.
In this guide, we cover everything you need to know about TallyPrime Edit Log: what it is, how to enable it, what it tracks, and why your business may need it.
What is TallyPrime Edit Log?
TallyPrime Edit Log is a built-in audit trail feature available in the TallyPrime Edit Log edition. It automatically records all changes made to vouchers, ledger masters, stock items, and other records within your Tally company data. Every alteration, deletion, and creation is logged with a timestamp and -- when Tally security is enabled -- the identity of the user who made the change.
Think of Edit Log as a permanent, tamper-proof record book that sits alongside your financial data. Once enabled, it captures the "before" and "after" state of every change, making it easy for auditors and management to verify the integrity of your accounting records.
Why Use Edit Log?
There are several compelling reasons to enable Edit Log in your TallyPrime setup:
- Compliance with Companies Act 2013: Section 128 requires companies to maintain books of account that include an audit trail. The MCA notification (effective April 1, 2023) makes this mandatory for all companies. TallyPrime Edit Log fulfils this requirement out of the box.
- Internal Audit: Management can review who changed what and when. This is invaluable for internal controls, especially in multi-user environments where several accountants access the same data.
- Fraud Detection: Unauthorized modifications to invoices, payments, or ledger balances are immediately visible in the Edit Log. Backdated changes or suspicious deletions stand out clearly.
- Accountability: When TallyPrime security controls are enabled, Edit Log records the user responsible for each change. This creates clear accountability across your accounting team.
If your company requires statutory audit or operates in a regulated industry, Edit Log is essential. Even for smaller businesses, the visibility it provides can prevent costly errors and disputes.
How to Enable Edit Log in TallyPrime
Enabling Edit Log is straightforward, but it comes with an important caveat: once enabled, Edit Log cannot be disabled. Make sure your team understands this before proceeding.
Follow these steps to enable Edit Log:
- Open your company in TallyPrime Edit Log edition.
- Press F11 (Features) to open the Company Features screen.
- Navigate to Accounting Features.
- Set "Maintain Edit Log" to Yes.
- Press Ctrl+A to save the configuration.
From this point forward, TallyPrime will record every change made to vouchers and masters in this company. The Edit Log data is stored within the company data folder and cannot be separately deleted or tampered with.
Important: Edit Log is available only in the TallyPrime Edit Log edition. If you are using standard TallyPrime Silver or Gold, you will need to upgrade to the Edit Log variant. Contact Mark IT Solutions for pricing and assistance.
What Does Edit Log Track?
Once enabled, TallyPrime Edit Log captures a wide range of modifications:
- Voucher Modifications: Every time a voucher (sales, purchase, payment, receipt, journal, etc.) is altered, Edit Log stores both the original and modified versions. You can compare field-by-field what changed.
- Voucher Deletions: If a voucher is deleted, the Edit Log retains the complete record of the deleted voucher. This is critical for auditors who need to verify that no legitimate transactions were removed.
- Ledger and Master Changes: Changes to ledger names, groups, opening balances, GST details, and other master data are recorded. This includes stock item modifications, cost centre changes, and group alterations.
- User Identification: When TallyPrime security controls (user accounts with passwords) are enabled, each Edit Log entry records the username of the person who made the change. Without security enabled, the system records changes but without user attribution.
For businesses with our Tally support services, we can help configure security controls alongside Edit Log to ensure complete audit trail compliance.
Viewing the Edit Log Summary
TallyPrime provides a dedicated Edit Log Summary report that lets you review all recorded changes at a glance. Here is how to access it:
- Go to Gateway of Tally.
- Navigate to Display More Reports > Edit Log.
- The Edit Log Summary screen appears, showing all voucher activities.
From the summary, you can:
- Filter by activity type: View only Altered, Non-altered, or Deleted vouchers.
- Filter by period: Narrow down to a specific date range to review changes made during that time.
- Filter by user: When security is enabled, see changes made by a specific user.
- Drill down: Click on any entry to see the version history of that voucher, with a side-by-side comparison of what was changed.
The drill-down capability is particularly powerful for auditors. They can trace the complete lifecycle of a voucher from creation through every modification to its current state (or deletion).
TallyPrime vs TallyPrime Edit Log Edition
Not all TallyPrime licenses include the Edit Log feature. Here is a quick comparison:
- TallyPrime Silver (Rs 22,500): Single-user license without Edit Log. Suitable for businesses not subject to audit trail mandates.
- TallyPrime Silver Edit Log: Single-user license with Edit Log. Ideal for small companies that need compliance.
- TallyPrime Gold (Rs 67,500): Multi-user license without Edit Log. For businesses with multiple accountants but no audit trail requirement.
- TallyPrime Gold Edit Log: Multi-user license with Edit Log. The most comprehensive option for companies needing both multi-user access and audit trail compliance.
If you are unsure which edition your business needs, our team at Mark IT Solutions can help you evaluate your requirements. We have helped hundreds of Mumbai businesses select the right TallyPrime configuration.
When is Edit Log Mandatory?
The MCA notification mandating audit trails in accounting software applies to:
- All companies registered under the Companies Act 2013: This includes private limited companies, public limited companies, one-person companies (OPCs), and Section 8 companies.
- Effective date: April 1, 2023, for financial years beginning on or after this date.
- Requirement: The accounting software must record an audit trail of each transaction, create an edit log of changes, and ensure the audit trail cannot be disabled.
The following entities are not covered by this mandate:
- Sole proprietorships (unless subject to statutory audit under other laws)
- Partnership firms (unless subject to statutory audit)
- LLPs (covered under a separate LLP Act, though similar requirements may apply)
Even if your business is not legally required to maintain an audit trail, enabling Edit Log is good practice. It adds a layer of accountability and transparency to your accounting process that can prevent disputes and simplify year-end audits.
For the latest updates on audit trail requirements and their importance, see our detailed guide. Also check out the TallyPrime Release 6.1 features for the latest enhancements to Edit Log functionality.
