Tally data synchronization keeps a separate copy of your company at each branch and exchanges masters and vouchers with head office over Tally.NET, on demand or online. It needs active TSS at both ends and a multi-user licence at the server. One central TallyPrime company on a cloud server removes the copies: every branch posts into the same live books.
Sources: Tally Solutions' data exchange and synchronisation guide and synchronisation FAQ, checked 6 October 2026. Tally spells it "synchronisation"; you'll see both spellings here.
Two architectures: synchronised copies vs one central company
Every multi-location business on TallyPrime ends up choosing between two designs, often without realising it's a choice.
Synchronised copies. Head office and each branch run TallyPrime on their own computers, each with its own copy of the company. Synchronisation sends new vouchers and masters between the copies at intervals. Tally calls head office the server and each branch a client. Between syncs, each copy only knows what was entered locally.
One central company. TallyPrime and a single copy of the company live on one Windows server. Head office, branches and godowns all open that same company through Remote Desktop. There's nothing to synchronise, because there's only one set of books. This is how TallyPrime for multiple branches works on one cloud server.
The difference is easiest to see over a single business morning. Press play, or step through it one entry at a time.
- GI pipe in stock
- 200
- Sharma Traders owes
- ₹0
- GI pipe in stock
- 200
- Sharma Traders owes
- ₹0
- GI pipe in stock
- 200
- Sharma Traders owes
- ₹0
Nothing in that morning is a bug. Synchronisation is doing exactly what it was designed to do: move entries between copies at set times. The problem is the time in between. Here's how the two designs compare on the things a branch business actually feels:
| Synchronised copies | One central company | |
|---|---|---|
| Copies of the books | One per location, plus the head office copy | One |
| Head office sees a branch sale | After the next sync | When the voucher is saved |
| Works with no internet | Yes, locally | That location waits |
| Licences | One at every location; multi-user at the server | One for the business entity |
| Backups to check | One set per location | One set, on the server |
| Upgrading TallyPrime | Every location together, same release | Once, on the server |
How Tally data synchronization works
Synchronisation is a client-server feature. You decide which company is the server (usually head office) and which are clients (usually branches). Tally's data exchange guide describes it as a way to distribute masters such as price lists from head office and consolidate branch transactions back at head office. A single TallyPrime installation can act as client and server at the same time.
What moves, and how, is set by sync rules. Each rule has a type, a method and a direction:
- Rule type: Master or Transaction. You can create separate rules for masters and vouchers, and for sending and receiving. When vouchers sync, Tally carries along the masters they need, such as ledgers, groups, stock items, units and currencies.
- Method: On demand, Online or IP. On demand doesn't need both sides online together: the Tally.NET server holds the data until the receiving company accepts it, for up to seven days. Online needs both companies connected to Tally.NET at the same time and moves data straight away. IP links the two directly over a private network and needs a static public IP.
- Direction: send, receive or both. Tally's guide notes that a two-way rule carries transactions only, so masters need their own one-way rules.
- Options that change behaviour, such as Synchronise after save, which sends each voucher as it's saved for near real-time transfer, and Synchronise altered transactions, which passes on edits made after the first sync.
Data travels as encrypted XML. For a new branch or a very large first transfer, Tally offers snapshot exchange over a private network. For businesses with many branches, its FAQ recommends mirror synchronisation, where each branch syncs into its own separate company at head office instead of everyone writing into one.
Before you start: what synchronisation needs
- A licence at both ends. Tally's synchronisation FAQ says the server end needs a multi-user licence "even if there is only a single user"; a client can be single-user or multi-user.
- Active TSS at both ends when you sync through Tally.NET. Tally's TSS FAQ lists online data sync among the services that stop when TSS expires.
- The same TallyPrime release at both ends, with matching F11 company features.
- An internet connection, though not a continuous one. Tally suggests broadband of at least 256 kbps.
Tally data synchronization step by step
These are the menus in current TallyPrime releases, from Tally's set-up guide and synchronisation guide. In release 4.1 or earlier, the rule options sit directly under Alt+Z without All Sync Options.
- Turn on Tally.NET services (both ends). Press F11 (Company Features) and set Enable Tally.NET Services for Remote Access and Synchronisation to Yes.
- Set the roles (both ends). Press Alt+Z (Exchange) › Configure › Client/Server Configuration. Choose Server at head office and Client at the branch, and enter a port such as 9000. For two-way sync, set up both machines, since each acts as server and client for the other. Confirm under F1 (Help) › About.
- Secure the server company. Press Alt+K (Company) › Alter, set Control User Access to Company Data to Yes and create a user name and password.
- Connect it to Tally.NET. Press Alt+K › Connect, under Online Access. Check the status in F1 › Troubleshooting › Event Log.
- Create the client rules (branch). Press Alt+Z › All Sync Options › Client Rules › Create. Name the rule, pick the Rule Type (Master or Transaction), the Method of Sync (On demand, Online or IP) and the Direction, then press Ctrl+A.
- Send the rule to the server. At the branch, press Alt+Z › Synchronise. On-demand rules wait on Tally.NET until the server picks them up.
- Activate the rule (head office). Press Alt+Z › All Sync Options › Server Rules › Activate, select the rule and set Activate rule to Yes.
- Synchronise and check. Press Alt+Z › Synchronise for all rules, or All Sync Options › Synchronise Selected for one. Read the Event Log after every run.
Three habits that prevent most sync problems. Give each location its own voucher types (for example "Sales Pune") so numbers never clash. Keep master changes, such as new ledgers and price changes, to head office and send them out with a one-way master rule. And never delete a synced voucher with Alt+D; cancel it with Alt+X, as Tally's FAQ advises.
Where Tally sync goes wrong: conflicts, masters, delays and TSS
Tally documents each of these problems itself, in its FAQ and its list of synchronisation errors. None of them is rare in a busy branch network, and each one lands on whoever does the month-end reconciliation.
| Problem | What happens | Tally's advice | With one central company |
|---|---|---|---|
| Delays | Each copy is out of date until the next sync. On-demand data not accepted within seven days expires | Sync more often, or use Online with Synchronise after save | Every user sees a voucher once it's saved |
| Renamed masters | Renaming a ledger or item used in synced vouchers creates a new master with the new name at the other end | Synchronise masters with their own rules | Rename once; everyone sees it |
| Duplicate voucher numbers | "Voucher already exists" errors when two locations use the same number | Separate voucher types or numbering per location | One numbering series per voucher type |
| Deleted vouchers | Deleting a synced voucher leaves the copies inconsistent | Cancel with Alt+X, or delete at both ends | Normal editing, limited by user rights |
| Release mismatch | Both ends must run the same release; Tally says syncing Tally.ERP 9 with TallyPrime "may corrupt your data" | Upgrade every location together | One installation to upgrade |
| Copied companies | A company set up from a copy of the other end's backup carries the same GUID and won't sync | Create a fresh company at one end | Nothing to pair up |
| Network blocks | "Handshake failed" or "Unable to reach Tally.NET server" behind firewalls and proxies | Allow Tally's addresses and ports | Branches only need to reach the server |
| TSS lapses | Tally.NET sync stops at that location | Renew TSS at every location | Access doesn't depend on TSS |
From Tally's synchronisation FAQ (updated 5 March 2026), errors guide and data exchange guide (both updated 3 February 2026). On the last row: Tally's TVU rules, which govern cloud access, have no dependency on TSS. You'd still want TSS for updates and connected GST services.
The cost that doesn't show in any error log is trust. Once a branch manager has seen head office chase a payment that was already received, or promise stock that was already sold, people start phoning each other to check figures. At that point the books have stopped being the single source of truth.
Still syncing Tally.ERP 9 branches? Tally stopped TSS renewals for Tally.ERP 9 on 16 August 2026, according to its upgrade page. Tally.NET sync needs active TSS at both ends, so once each location's current TSS term ends, its sync will stop. Upgrade every location to TallyPrime together, or use the move as the moment to switch to one company. Our guide to what the Tally.ERP 9 TSS change means covers the options.
One central company on a cloud server
In the central design, your licensed TallyPrime runs on a private Windows server in a secure data centre in India, in Mumbai. Each person connects with Microsoft's free Windows App on a Mac, iPad, iPhone or Android, or Remote Desktop Connection on Windows. A voucher saved at the branch is in head office's Day Book the moment it's saved, because it's the same Day Book.
You don't lose the branch-level control that made separate copies attractive. TallyPrime already has the tools to keep branches apart inside one company:
- Voucher types per branch, each with its own numbering, so a Pune invoice can never collide with a Nagpur one.
- Cost centres for branch-wise profit and expenses, and godowns for stock by location.
- User roles (Alt+K › User Roles) that limit which vouchers and reports each branch can create, see or export.
- Several GSTINs in one company since TallyPrime 3.0, with returns produced GSTIN-wise, according to Tally's multi-GSTIN guide. Or keep one company per GSTIN on the same server.
Licensing works in your favour too. Tally's licensing best practices say that "you can use cloud hosting to only share one license across different branches of the same business entity, and not different business entities." On a cloud server, each open TallyPrime window counts as a Tally Virtual User: Silver includes one and Gold includes ten, with extra TVUs at ₹125 per user per month plus GST, billed annually. Our Tally Virtual User guide walks through the arithmetic. A sister firm or separate company still needs its own licence.
Internet is the trade-off. A branch whose connection drops can't post until it's back, while everyone else carries on. Remote Desktop needs a steady connection more than a fast one, so a 4G hotspot as backup is usually enough. Our guide to internet speed for Tally on Cloud covers the numbers. If you have dozens of users posting heavily at once, compare this with TallyPrime Server as well.
Distributors feel the difference most, because stock moves between godowns all day. Our page on Tally for distributors on cloud shows how godown staff, salesmen and the owner work in one company.
Inter-branch transfers and GST
Under GST, each registration of the same business is treated as a distinct person (section 25(4) of the CGST Act). So whether a stock transfer between branches attracts GST depends on whether the GSTIN changes. Tally's help page on recording stock transfers sets out the treatment:
| Transfer between | GST | Vouchers in TallyPrime |
|---|---|---|
| Locations under the same GSTIN | Not applicable | Delivery Note out, Receipt Note in |
| Different GSTINs, same state | Central Tax + State Tax | Sales at the sender, Purchase at the receiver |
| Different GSTINs, different states | Integrated Tax | Sales at the sender, Purchase at the receiver |
With synchronised copies, the sending branch's invoice and the receiving branch's purchase sit in different company files until the next sync, so inter-branch balances rarely agree mid-month. In one central setup, head office can see both sides of every transfer on the day it happens and clear differences before the return is filed. Valuation and invoicing rules for supplies between distinct persons have their own detail, so settle the treatment with your CA.
Cost comparison: sync vs one cloud server
Be wary of anyone who says the cloud is always cheaper. Count Tally's licences and fees alone and synchronisation often costs less in cash, because a branch with one user can run on Silver. The picture changes once you add what each location needs to keep its own copy safe: a reliable PC, a UPS, backups that someone actually checks, and IT visits when sync breaks. The check below uses Tally's published prices and our plan prices, before GST, so you can try your own numbers.
Synchronised copies vs one server
Your own estimate for the PC that holds each location's copy: UPS, backup drive, antivirus and IT visits. Set it to ₹0 to compare licences and fees only. Users are spread evenly across locations; head office and any location with two or more users need Gold.
Not counted: GST, the time spent fixing sync errors, and the reports head office can trust on the day.
Tally prices are from its customer hub, ex-GST: Gold ₹67,500, Silver ₹22,500, TSS ₹13,500 (Gold) and ₹4,500 (Silver) a year, extra TVUs ₹125 per user per month with volume discounts. Hosting uses our flat ₹799 per user a month. Full details are on our pricing page and in the TallyPrime price guide.
When synchronisation is still the better choice
One central company isn't right for every site, and pretending otherwise would waste your money. Keep a local company with synchronisation where it earns its place:
- Sites that are offline for days, such as a remote plant, a mine or a project site with patchy connectivity. Tally's sync doesn't need a continuous connection; on-demand data waits up to seven days on Tally.NET.
- Locations that only report upward, sending a day's figures to head office in one batch, with nobody needing live data in between.
- A counter that must bill through every outage, where a local billing setup is safer and the accounts can live centrally.
Everywhere else, which in practice means branches and godowns in towns with ordinary broadband or 4G, the central company is simpler to run and easier to trust. If your manufacturing unit sits in an industrial area with frequent outages, our page on Tally for manufacturing companies covers a practical split between plant and office.
How to move from synchronisation to one cloud company
The switch is a one-time job, best done at a month or quarter end. Here's the order that avoids double entries and lost vouchers:
- Pick a cut-over date and tell every branch when to stop posting in its local copy.
- Run a final full sync from every branch, then read the Event Log at head office. Merge any duplicate ledgers created by renamed masters and compare each branch's voucher count and closing stock with head office's figures.
- Choose the master copy. With two-way sync that's usually the head office company. With mirror sync you'll have one company per branch at head office; keep them as separate companies on the server, or ask your Tally partner whether merging them is worth it.
- Back it up with Alt+Y › Backup & Restore › Backup (release 7.0 and later), then upload and restore it on the cloud server. Our guide to moving Tally data to the cloud has every step, including the licence move.
- Set up the branches inside the company: voucher types, cost centres and godowns per location, and a user role for each branch.
- Give each person a login and install Windows App or Remote Desktop on their device.
- Switch synchronisation off. At head office, set each server rule's Activate rule to No, and stop scheduling syncs from the branches.
- Freeze the old copies. Take a final backup of each branch company and keep it read-only for reference. No new entries go there again.
On a TallyoCloud server we do the restore and licence move for you, usually within one business day, and the server is then backed up for you: Daily automated backups with 30-day retention, stored in India. Our Tally backup guide explains how that fits with TallyPrime's own Auto Backup. The safest way to test the central design is a 7-day free trial with a copy of your head office company. Ask two branch users to work in it for a few days before you switch anything off.
Sources
Menus, limits and prices on this page come from Tally Solutions' official pages, checked on 6 October 2026 (the current TallyPrime release is 7.1):
- Data exchange and synchronisation, TallyHelp, updated 3 February 2026
- Set up for data synchronisation, TallyHelp, updated 23 February 2026
- Data synchronisation in TallyPrime, TallyHelp, updated 3 February 2026
- Configure client and server rules, TallyHelp
- Synchronisation FAQ, TallyHelp, updated 5 March 2026
- Synchronisation errors and resolutions, TallyHelp, updated 3 February 2026
- Licensing best practices, TallyHelp, updated 11 June 2026, and the Tally Virtual User FAQ
- FAQs on Tally Software Services and the Tally customer hub for prices
- Record stock transfers as GST purchases and sales, TallyHelp, updated 16 May 2024
- Manage multi-GSTIN in a single company and managing books for branches in several states, Tally Solutions
- Upgrade Tally.ERP 9 to TallyPrime, Tally Solutions
TallyPrime, Tally.ERP 9 and Tally.NET are trademarks of Tally Solutions Pvt. Ltd. TallyoCloud is an independent hosting provider and is not affiliated with Tally Solutions. This guide is general information, not tax or legal advice.
Frequently asked questions
What is data synchronization in TallyPrime?
It is Tally's built-in feature for exchanging masters and vouchers between separate copies of the same company, usually a branch (the client) and head office (the server). You create sync rules, then send data over Tally.NET on demand or online, or directly over a private IP link. Each location keeps its own company file, and synchronisation passes only the changes between those copies.
Does Tally data synchronization need TSS?
Yes, when you sync through Tally.NET, which is how most branches do it. Tally's synchronisation FAQ says TSS is needed at both the server and the client, and the server end needs a multi-user licence even if only one person uses it. Both ends must also run the same TallyPrime release. If TSS lapses at either end, Tally.NET sync stops until it is renewed.
Is Tally synchronization real time?
Only with the Online method and Synchronise after save switched on, and only while both companies are open and connected to Tally.NET. Most branches use On demand sync instead, where data waits on the Tally.NET server until the other side accepts it, for up to seven days. Between syncs each copy shows only its own entries, which is why balances and stock drift apart.
When is synchronization still the better choice?
When a site must keep billing through long internet outages, such as a remote plant, mine or project site, its own local company plus synchronisation can make sense, because Tally's sync doesn't need a continuous connection. It also suits a location that only sends figures to head office once a day. Where branches have dependable internet, one central company on a cloud server avoids sync conflicts and delays.
How do I move from synchronization to one cloud company?
Pick a cut-over date, run a final full sync, check the Event Log and tidy any duplicate ledgers. Back up the head office company, restore it on the cloud server and give branch staff their own logins and user roles. Then deactivate the sync rules and keep the old branch copies as read-only backups for reference, never for new entries.
Can branches in different states share one cloud company?
Yes. Since TallyPrime 3.0 one company can hold several GSTINs and produce returns GSTIN-wise, or you can keep one company per GSTIN on the same server and open them side by side. Tally's licensing rules let branches of the same business entity share one licence through cloud hosting. A separate legal entity, such as a sister firm, needs its own licence.
What happens if a branch's internet goes down on a cloud setup?
That branch waits until it reconnects, while every other location keeps working and the company data stays safe on the server. Vouchers saved before the drop are already in the books, and a disconnected Remote Desktop session normally stays open on the server, so the user picks up where they left off. A 4G hotspot as a backup connection is the simple fix.