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Ch06 Tally Inventory Masters

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35 views7 pages

Ch06 Tally Inventory Masters

Uploaded by

manumanohara1316
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Inventory Masters

INTRODUCTION

Inventory accounting includes recording of stock details like the


purchase of stock, the sale of stock, stock movement
between storage locations or godowns and providing information on
stock availability. Stock items are goods that
you manufacture or trade (sell and purchase). Tally makes it
possible to integrate the inventory and accounting systems so that
the financial statements reflect the closing stock value from the
Inventory system.

The inventory system operates in much the same way as the


accounting system. Setting up the inventory master is a
similar operation to creating the chart of accounts although, in this
case, there are no pre-defined set of stock groups. We create the
individual stock items, which is similar to setting up the ledgers.

In any company the Inventory Info. menu comprises of these types


of Masters, viz. Stock Groups, Stock Category, Stock Items, Units
of Measure and Godown.
4.1 Godowns / Locations
4.2 Units of Measure
4.3 Stock Groups
4.4 Stock Categories
4.5 Stock Items

4.1 Godown / Locations


A place where stock items are stored is referred to as Godowns. You
can specify where the stock
items are kept. For example: A warehouse, shelf or rack etc,
and obtain stock reports for each Godown and account for
the movement of stock between locations/Godowns.

4.2 Unit of Measurement


Stock Items are mainly purchased and sold on the basis of quantity.
The quantity in turn is measured by units. In such cases, it is
necessary to create the Unit of Measure. The Units of Measure can
either be simple or compound.
Examples of simple units are: nos., metres, kilo- grams, pieces etc.
Examples for compound units are: a box of 10 pieces etc. Create the
Units of Measure before creating the Stock Items.

4.3 Stock Groups


Stock Groups are provided to help in the classification of
stock items. Classification is done based on
some common behaviour. Grouping stock items makes it
easy to identify and report them in the statements. For example,
items of a particular brand can be grouped together so that you can
get the inventory details of all the items of that brand.

4.4 Stock Categories


This is a feature, which offers a parallel classification of stock items.
Like Stock Groups, Stock categories are also classified based on
some similar behaviour. The advantage of using Tally lies in
categorising Stock items together, (based on functionality)
across different stock groups. This enables you to obtain reports for
alternatives or substitutes of a stock item.

4.5 Stock Items


Stock items are goods that you manufacture or trade (sell
and purchase). It is the primary inventory entity. Stock Items in the
Inventory transactions are similar to ledgers being used
in accounting transactions. Therefore, Stock Items are important in
an inventory just as ledgers are important in accounting.
Case Study Example
Let us take the example of Indus Enterprises that sells Televisions and Music
Systems. Given below is the structure of items being sold.

Group A – Televisions
A1 – Sony A1a – Sony 29 inches TV
A1b – Sony 25 inches TV
A2 – Philips A2a – Philips 29 inches TV
A2b – Philips 25 inches TV
A3 – Videocon A3a – Videocon 29 inches TV
A3b – Videocon 25 inches TV

Group B – Music Systems


B1 – Sony B1a – Sony Tape-Recorder
B1b – Sony CD Player
B2 – Videocon B2a – Videocon Tape-Recorder
B2b – Videocon CD Player

The televisions are sold in numbers. Hence, the Unit of Measure will be Nos.
Indus Enterprises has two Godowns, the Bangalore Godown and
the Mumbai Godown. The grouping structure in Tally.ERP 9 is as follows:

Stock Group
1. Televisions (main
stock group)
‡ Sony TV – stock group under Televisons
‡ Philips TV – stock group under Televisons
‡ Videocon TV – stock group under Televisons
2. Music Systems (main
stock group)
‡ Sony Music Systems – Stock Group under Music Systems
‡ Videocon Music Systems – Stock Group under Music Systems

Under the stock group Televisions, let us create stock groups based on the different
brands being sold viz. Sony, Philips and Videocon. This helps to find the total sales of a
particular brand of tele- visions at any given point of time. In order to compare the total
sales of the 29 and 25 inches televisions respectively, Tally.ERP 9's feature of Stock
Categories for parallel classification can be used.

4.1. Stock Groups in Tally.ERP 9


Creating Stock Group
i. Create the Stock Group – Television under
Primary.
Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create (under the
Single Stock Group
Ensure that the screen appears as shown below:

‡ Press Y or Enter to accept the screen.

Similarly, create Music Systems under

ii. Create Sony TV under Televisions.

The screen is displayed as shown below:

‡ Press Y or Enter to accept th


e screen.

Practice Exercise
Create the following Stock Groups in the similar manner
Name Under CanQuantities
of items be
ADDED
Philips TV Televisions Yes
Videocon TV Televisions Yes
Sony Music Systems Music Systems Yes
Videocon Music Systems Music Systems Yes

4.2. Stock Categories


‡ Set Yes to Maintain Stock Categories in F11: Features (F2: Inventory Features) to
get an additional option Stock Categories under Inventory Info.
4.2.1 Creating Stock Category
Go to the Gateway of Tally > Inventory Info. > Stock
Categories > Create.
i. Create Stock Category 29 inches TV Under Primary

‡ Press Y or Enter to accept the screen.

Similarly , create Stock Category 25 inches TV under Primary.

Godown / Locations
‡ Set Yes to Maintain Multiple Godowns in F11: Features
F2: Inventory Features) to get additional option like Stock
Categories under Inventory Info.

4.3.1 Creating a Godown


Go to the Gateway of Tally > Inventory Info. > Godowns >
Create.
i. Create a Godown – Bangalore under
Primary.
Ensure that the screen is displayed as shown below:

‡ Press Y or Enter to accept the screen.


Note :
‡ Godowns have a main location, by default because of which the options Display and Alter are
functional evenbefore you create a godown.
Similarly create the godown – Mumbai under Primary.

Unit of Measurement
4.4.1 Creating Units of Measure
Go to the Gateway of Tally > Inventory Info. > Units of Measure > Create.

Type
Tally.ERP 9 has the option to create simple units as well as compound units. Examples:
box, nos, pcs,etc. A Compound Unit is a combination of two simple units of measure.
Example: A box of 10 pcs is a compound unit of measure.

Symbol
It is the abbreviated form by which a stock item is identified. For example, the abbreviation pcs
indicates – pieces

Formal Name
This represents the complete or formal name of a symbol used while creating a unit.
Different companies use different symbols to represent the same units.
Formal names help you to match the symbols with their respective units. For example, the
symbol for numbers (formal name) can be nos or num.

Number of Decimal Places


A unit can be expressed as fractions. For example, a 3.15 Kg refers to 3Kg and 150 grams.
The number of digits expressed in grams after the decimal places are three.
Likewise, fractions up to four decimal places can be expressed in the same manner.
For expressing numbers, without a decimal place, specify 0 in this option.

Let us create the unit Nos.


1. Type: Simple
2. Symbol: Nos
3. Formal Name: Numbers
4. Number of Decimal Places: 0

5. Press Y or Enter to accept the screen.

Stock Items
4.5.1 Creating a Stock Item
Go to Gateway of Tally > Inventory Info. > Stock Items > Create.

The Stock Item Creation Screen appears as shown below:

Enter
the following details:
Name: The name of the stock item.
Under: The stock group under which you want to classify the stock item.
Category: The stock category you want to classify the stock item for parallel classification.
Units: The unit of measure for the stock item being created.
Rate of Duty: Enter the rate of duty charged on the item.
Opening Balance: The opening balance of a stock item, refers to the stock available with us.
Godowns that have already been created, must have the opening balance quantity and the
location specified.

i. Create a Stock Item Sony 29 inches TV, under the Group Sony TV.
Ensure that the details appear as shown below:

‡ Press Y or Enter to accept the screen.

Create the following Stock Items under Televisions


Name Under Category Units
Sony 25 inches TV Sony TV 25 inches TV Nos
Philips 29 inches TV Philips TV 29 inches TV Nos
Philips 25 inches TV Philips TV 25 inches TV Nos
Videocon 29 inches TV Videocon TV 29 inches TV Nos
Videocon 25 inches TV Videocon TV 25 inches TV Nos

Create the following Stock Items under Music Systems.

Name Under Category Units


Sony Tape – Recorder Sony Music Systems Not Applicable Nos
Sony CD – Player Sony Music Systems Not Applicable Nos
Videocon Tape - Recorder Videocon Music Not Applicable Nos
Systems
Videocon CD – Player Videocon Music Not Applicable Nos
Systems

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