Tally Erp9 Lesson 4 Inventory Management In Tally

  Module 4: Inventory Management in Tally

Inventory management is one of the essential functions of any business, and Tally provides robust tools to manage inventory efficiently. In this module, we will explore how to manage inventory in Tally, covering everything from creating inventory masters to recording inventory transactions through vouchers.

4.1 Inventory Master Creation

The first step in inventory management is to set up inventory masters in Tally. This includes creating stock items, stock groups, and units of measure.

4.1.1 Creating Stock Items

A stock item represents the actual product or item that you buy, sell, or manufacture. Here's a step-by-step guide to creating a stock item:

Steps:

Open Tally and go to Gateway of Tally > Inventory Info > Stock Items > Create.

Enter the Name of the stock item (e.g., "Laptop").

Select the relevant Stock Group (if applicable).

Choose the appropriate Unit of Measure (e.g., "Nos" for units).

Set the Opening Balance if the item has any initial stock.

Optionally, you can add details such as GST rates, HSN codes, and more.

Press Enter to save.

Practical Example: Create a stock item named "Dell Inspiron Laptop," assign it to a group "Laptops," and set the unit of measure to "Nos." Input the opening balance as 10 units.

4.1.2 Creating Stock Groups

Stock groups help categorize similar types of items for easier reporting and management.

Steps:

Navigate to Inventory Info > Stock Groups > Create.

Enter the Name of the group (e.g., "Electronics").

Specify whether the group should behave as a sub-group (e.g., under "Goods").

Press Enter to save.

Practical Example: Create a stock group named "Laptops" under the main group "Electronics" to categorize all types of laptops.

4.1.3 Creating Units of Measure

Units of measure represent how stock items are quantified, such as pieces, kilograms, liters, etc.

Steps:

Go to Inventory Info > Units of Measure > Create.

Enter the Symbol (e.g., "Nos" for numbers).

Enter the Formal Name (e.g., "Numbers").

Specify the Number of Decimal Places if applicable.

Save the unit.

Practical Example: Create a unit of measure called "Nos" for laptops, which will be counted in individual pieces.

4.2 Godowns and Locations

In Tally, Godowns (warehouses) are used to manage stock across multiple locations. This is particularly useful for businesses with multiple warehouses.

4.2.1 Creating Godowns

Godowns allow you to manage inventory at different locations within your company.

Steps:

Go to Inventory Info > Godowns > Create.

Enter the Name of the godown (e.g., "Main Warehouse").

Assign the godown to a parent location if necessary.

Press Enter to save.

Practical Example: Create two godowns: "Main Warehouse" and "Secondary Warehouse." These can now be used to manage stock at different locations.

4.2.2 Transferring Stock Between Godowns

You can transfer stock between godowns using a Stock Journal Voucher.

Steps:

Go to Gateway of Tally > Inventory Vouchers > Stock Journal.

Select the Source Godown (e.g., "Main Warehouse").

Choose the Stock Item and enter the quantity to transfer.

Select the Destination Godown (e.g., "Secondary Warehouse").

Save the voucher.

Practical Example: Transfer 5 units of "Dell Inspiron Laptop" from the "Main Warehouse" to the "Secondary Warehouse."

4.3 Inventory Vouchers

Inventory vouchers in Tally help record different types of inventory transactions, such as stock transfers, sales, purchases, and stock journals.

4.3.1 Recording a Purchase Transaction

To record a purchase transaction, you can use the Purchase Voucher.

Steps:

Go to Accounting Vouchers > F9: Purchase.

Select the Supplier's Account.

Enter the Purchase Ledger (e.g., "Purchase Account").

Choose the relevant Stock Items, enter the quantity, and input the rate.

Save the voucher.

Practical Example: Record the purchase of 20 units of "Dell Inspiron Laptop" at $800 per unit from "ABC Suppliers."

4.3.2 Recording a Sales Transaction

The Sales Voucher is used to record sales of stock items.

Steps:

Navigate to Accounting Vouchers > F8: Sales.

Select the Customer’s Account.

Choose the Sales Ledger (e.g., "Sales Account").

Enter the Stock Item, quantity, and selling price.

Save the voucher.

Practical Example: Record the sale of 5 units of "Dell Inspiron Laptop" at $1000 per unit to "XYZ Computers."

4.3.3 Stock Journal Voucher

The Stock Journal Voucher is used for internal stock adjustments, such as transferring goods between godowns or adjusting inventory due to wastage or production.

Steps:

Go to Inventory Vouchers > Stock Journal.

Choose the Source Godown and the Destination Godown.

Select the Stock Item, and enter the quantity to be adjusted.

Save the voucher.

Practical Example: Record an adjustment to transfer 2 units of "Dell Inspiron Laptop" from the "Main Warehouse" to the "Secondary Warehouse."

4.4 Lab and Practical Exercises

To reinforce the concepts covered in this module, try the following lab exercises:

Exercise 1: Stock Item Creation

Create the following stock items:

"HP Pavilion Laptop" under the group "Laptops" with an opening balance of 15 units.

"Apple MacBook Air" under the group "Laptops" with an opening balance of 5 units.

Create a unit of measure named "Kg" and assign it to a stock item named "Laptop Batteries."

Exercise 2: Godown Management

Create two godowns: "Main Warehouse" and "Branch Warehouse."

Transfer 10 units of "HP Pavilion Laptop" from "Main Warehouse" to "Branch Warehouse."

Exercise 3: Voucher Entries

Record the purchase of 30 units of "Apple MacBook Air" at $1200 each from "Tech Distributors."

Record the sale of 10 units of "HP Pavilion Laptop" at $1400 each to "Smart Tech Retailers."

4.5 Conclusion

In this module, we explored inventory management in Tally, covering how to create inventory masters, manage godowns, and record inventory transactions using vouchers. The practical exercises will help solidify your understanding of these concepts and prepare you for efficient inventory management in real-world scenarios.