Technical Anshu
Tutorials Blog
🧾 Licence Behaviour

What Happens When Two PCs Use One Tally Silver Licence at the Same Time

Both computers open Tally at 10 in the morning. One works. The other does not. This page shows exactly what happens on the second PC, why it happens, and the official handover steps that let the licence move between desks legally.

✍️ Technical Anshu🧾 TallyPrime📜 Licence Facts
🎥 Full video — the second PC experience, shown live on screen

You do not need to imagine this scene — it plays out in small offices every day. The billing PC opens Tally fine. The owners PC, using the same Silver licence over the network, refuses to start a licensed session. Nothing is broken. This page walks through the sequence technically: how the licence answers, the Educational Mode offer you must refuse, and the documented way the licence is handed over.

The Second PC — Step by Step
1. PC 2 starts TallyPrime, looks for the licence on the networkSearching
2. Licence service answers — licence found, but already in use by PC 1In use
3. PC 2 cannot open a licensed session on that licenceStopped
4. Offer shown instead — run in Educational ModeLearning only
5. PC 1 closes every Tally instance, PC 2 retriesLicence free ✅
There is no error in your PC or your network. The licence is doing exactly what a single-user licence is designed to do.
1

Why the Second PC Gets Stopped

A TallyPrime licence is served by the machine where it is activated. When Tally starts on any PC, it asks that licence service: is a seat free? A Silver licence has exactly one seat. Tallys official licensing FAQ confirms the rule: only one user can access a Silver licence at a time in a LAN, and for another user to take it, all instances currently using it must be closed first.

So the second PC is not "unable to find the licence" — it finds it, and is told the seat is occupied. That is the licence working as designed, not a fault to repair.

2

The Educational Mode Trap

When no licensed seat is available, Tally may offer to start in Educational Mode. This is the most dangerous screen in this whole story, because it looks like Tally opened fine. Educational Mode is a learning mode: Tally itself states that in this mode you can enter transactions only on selected dates. Real vouchers entered there are a compliance mess waiting to be found at filing time.

Rule for every office: if Tally opens in Educational Mode, stop. Do not enter a single real entry. Find out which PC is holding the licence, close it there properly, and then open Tally again in licensed mode.

3

The Correct Handover, Step by Step

  1. On PC 1, save any open work and close TallyPrime completely — every company, every instance.
  2. On PC 2, start TallyPrime and press F1 (Help) → Settings → License → Manage License.
  3. Press F4 — Use License From Network → Configure License Manually.
  4. Enter the computer name or IP address and the port of the machine where the licence is activated, then connect.
  5. Both PCs must be on the same LAN for this to work.

When PC 2 is done, the reverse is the same: close Tally fully on PC 2, and PC 1 can use the licence again. One more honest note from Tallys documentation: on the same computer, a Silver licence can be used by multiple TallyPrime releases installed in different folders — that is about versions on one machine, not extra users.

🔴 "Licence in use" right after a crash? If Tally closed suddenly on PC 1, wait a short while and try again — and check that no Tally window or background instance is still open on PC 1. Do not start reinstalling or deleting licence files; the seat frees when the session truly ends.

🎥 Watch the Full Video for the Complete Picture

The video above walks through what actually happens when one Tally licence meets two PCs, step by step, on screen.

▶️ Watch Full Video
❓ Common Questions (FAQ)

Why does the second PC find the licence but still not open?

Finding the licence and having a free seat are two different things. A Silver licence has one seat. The licence service on the activated machine reports that the seat is occupied by the first PC, so the second PC cannot start a licensed session until the first closes Tally completely.

Is Educational Mode safe for entering todays bills if the licence is busy?

No. Educational Mode is a learning mode and transactions there are restricted to selected dates. Real business entries made in it create wrong-date vouchers and filing problems. Close Tally on the PC holding the licence, then open your PC in licensed mode instead.

Can both PCs at least view reports together on Silver?

Not at the same time through the licence — viewing inside TallyPrime still uses the licence. For look-only needs, export or print the report from the working PC, or use Tallys browser-based report access where your TSS subscription offers it, rather than opening a second Tally session.

This guide is based on the Technical Anshu video above • Licence rules change over time, so confirm current terms on Tally Solutions official help pages before you buy or upgrade 🙏