Create Godowns

Godown is a place where stock items are stored. Pigeon Home Appliances stores raw materials and finished goods in different godowns.

Company also want to track the goods sent out for Job Work and material received for Job work by creating different locations.

When different locations are maintained to track the goods sent or received for Job Work Pigeon Home Appliances has the following requirements

• When the goods are sent out for Job work, the quantity of stock item and stock value should not be reduced form the books of accounts as the company has the ownership on the goods transferred.

• When goods are received for Job work, the stock should not affect the books of account of Job Worker.

Tally.ERP 9 allows to create godowns to meet all the above requirements

Raw Material Location

This godown is created to store the Raw Materials purchased

To create the Godown

Go to Gateway of Tally > Inventory Info. > Godowns > Create

• Name: In this field enter the Name of the Godown. E.g. Raw Material Location

• Under: In this field select Primary

• Our Stock with Third Party: Set this option to No.

• Third Party stock with us: Set this option to No.

• Press Enter to save.

Note:

Use for section in Godown Creation or Alteration is provided in Tally.ERP 9 Release 3.0 where users can create the godowns to store without affecting the stock valuation:

The stock of the company lying with third party like Consignment agent, Bonded Ware house, Job worker etc.

Or

Third Party stock lying with the company in case company has received the stock for Job Work or acting as consignment agent or for any other reason.

* Our Stock with Third Party: Set this option to Yes if the godown is used to account the company's goods lying with the third party.

* Third Party Stock with us: Set this option to Yes if the godown created is used to account the goods received from third party and the stock of third party should not affect the company stock value.

Create the godowns as per the details given in the table

JobWork (Out) Location

This godown is created to account the goods lying with the Job Workers (third party)

To create the Godown

Go to Gateway of Tally > Inventory Info. > Godowns > Create

• Name: In this field enter the Name of the Godown. E.g. JobWork (Out) Location

• Under: In this field select Primary

• Our Stock with Third Party: Set this option to Yes.

Note: On enabling the Use for option Our Stock with Third Party cursor will not move to Third Party Stock with Us field. Hence a godown can be configured to use the godown for any one purpose.

• Press Enter to save.

JobWork (In) Location

This godown is created to account the goods received from the principal manufacturer for Job Work.

To create the Godown

Go to Gateway of Tally > Inventory Info. > Godowns > Create

• Name: In this field enter the Name of the Godown. E.g. JobWork (In) Location

• Under: In this field select Primary

• Our Stock with Third Party: Set this option to No.

• Third Party stock with us: Set this option to Yes.

• Press Enter to save.

Create Godowns - If Excise Applicable

Tally.ERP 9 allows to create and maintain multiple Excise Units  in a Single company. The excise Units created will be considered as Godowns.

When Excise feature is enabled, the other godowns required for storing the Raw Material, Finished Goods, Scrap, Our stock lying with Third Party or Third party stock lying with us needs to be created as sub-godowns of Excise Unit.

Raw Material Location

Go to Gateway of Tally > Inventory Info. > Godowns / Excise Units > Create

• Name: In this field enter the Name of the Godown. E.g. Raw Material Location

• Under: In this field select ABC Company

• Excise Registration Type: Select Not Applicable.

• Our stock with Third Party: Set this option to No

• Third Party stock with us: Set this option to No

Similarly, create other godowns as per the details given in the table