Module 11: Tally ERP9 Reports - Inventory
In this module, we will explore how Tally ERP9 provides powerful tools for managing and analyzing inventory. We will focus on three essential reports: Stock Summary, Movement Analysis, and Reorder Levels. These features help businesses keep track of their inventory, monitor stock movements, and ensure optimal stock levels are maintained.
1. Stock Summary
The Stock Summary Report in Tally ERP9 is a comprehensive overview of the current stock position. It includes details such as stock quantities, stock values, and item-wise summary reports. This report is essential for understanding stock valuation and provides insights into the financial worth of your inventory.
Stock Valuation Methods in Tally ERP9:
Tally ERP9 offers several stock valuation methods such as:
Average Cost: The cost is calculated as the average of all stock receipts.
FIFO (First-In, First-Out): The stock that comes in first is considered sold first.
LIFO (Last-In, First-Out): The last received stock is sold first.
Standard Cost: Stock is valued at a predefined standard price.
Weighted Average: Stock is valued based on the weighted average of all receipts.
User Defined: Custom stock valuation based on the user's preferences.
Practical Method for Stock Summary Report:
Exercise 1:
Open Tally ERP9.
Navigate to Gateway of Tally > Reports > Inventory Reports > Stock Summary.
Explore the report with different valuation methods such as FIFO, LIFO, and Average Cost.
Steps:
Select an inventory item, and analyze its stock quantity and value.
Change the stock valuation method to understand the differences in stock value under each method.
Observe how Tally ERP9 adjusts the stock value based on the selected method.
Lab Exercise:
Create a sample inventory with multiple receipts and sales.
Use FIFO and Average Cost valuation methods to compare the stock value differences.
2. Movement Analysis
The Movement Analysis Report in Tally ERP9 helps businesses track the movement of stock across different godowns or locations. It provides a detailed summary of stock movement, including the quantity of stock transferred, sold, or received over a period of time. This report is critical for managing stock at multiple locations and understanding stock availability at each location.
Types of Movement Reports:
Inward Movement: Tracks goods received from suppliers or other godowns.
Outward Movement: Monitors stock issued for sales or transfers to other godowns.
Godown-Wise Analysis: Provides insights into stock movement within specific godowns.
Practical Method for Movement Analysis:
Exercise 2:
Navigate to Gateway of Tally > Inventory Reports > Movement Analysis > Stock Movement.
Select Inward or Outward Movement.
Steps:
Choose a time period to generate a report of stock movements between godowns.
Analyze the quantities of stock transferred, purchased, or sold in that period.
Observe stock movement trends and patterns across different locations.
Lab Exercise:
Set up multiple godowns in Tally ERP9.
Record stock receipts, transfers, and sales.
Use the Movement Analysis report to track how goods move across the godowns.
3. Reorder Levels
Reorder levels in Tally ERP9 allow businesses to set minimum stock levels for each inventory item. When the stock quantity falls below the reorder level, Tally generates a report for replenishing stock. This feature ensures that businesses do not run out of critical items and can maintain optimal stock levels.
Steps to Set Reorder Levels:
Go to Gateway of Tally > Inventory Information > Stock Items.
Select a stock item and define its Reorder Level based on usage patterns and supplier lead time.
Practical Method for Reorder Level Reports:
Exercise 3:
Set reorder levels for specific inventory items in Tally ERP9.
Navigate to Inventory Reports > Reorder Status to generate a report.
Steps:
Record sales or issues that reduce stock below the reorder level.
Generate the Reorder Status Report to identify items that need replenishment.
Use the report to place orders with suppliers.
Lab Exercise:
Create a scenario where certain items are sold and their stock levels drop below the reorder threshold.
Use the Reorder Status Report to ensure timely replenishment.
Putting It All Together - Comprehensive Exercise
Scenario: Imagine you manage a warehouse with three godowns: Main Warehouse, Godown A, and Godown B. You stock multiple items such as Product A, Product B, and Product C. Each godown receives shipments from suppliers and issues stock to customers.
Stock Summary: Use the Stock Summary Report to analyze the valuation of Product A and Product B in the Main Warehouse. Compare the stock valuation using FIFO and Average Cost methods.
Movement Analysis: Use the Movement Analysis Report to track the movement of Product B between Godown A and Godown B over the last month. Analyze how much stock was transferred between the locations.
Reorder Levels: Set a reorder level of 50 units for Product C in the Main Warehouse. After recording sales that drop the stock to 40 units, generate a Reorder Status Report to identify that Product C needs to be replenished.
Conclusion
In this module, we have explored how Tally ERP9 can provide detailed insights into your inventory management through Stock Summary, Movement Analysis, and Reorder Levels. By mastering these reports, businesses can efficiently manage their stock, track movements across locations, and ensure timely stock replenishment to meet demand.
Each of the exercises and lab tasks in this module will help you develop practical skills in managing inventory within Tally ERP9, enabling you to make informed decisions about stock control and inventory management.
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