Item c ost and profit t racking refers to accumulation of costs and revenue for a particular quantity of a stock item across various transactions. Any transaction can be tracked and subsequently referred in any transaction. This enables analysing the running cost and profitability of the item being tracked through manufacturing, sales, purchase, and so on. Item cost tracking helps you effectively track and ascertain the procurement cost, landing costs, manufacturing or production costs, order cost or profit, and job cost or profit. This feature also helps determining sale price of finished goods based on the costs incurred till date and overall profitability.
In Tally.ERP 9, Item Cost Tracking can be enabled from the Inventory Features screen. On enabling item costing for the company, the option Enable Cost Tracking? is available in ledger masters.
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Configure stock items for cost tracking
Configure accounting ledgers for cost tracking
1. Go to Gateway of Tally > F11: Features (F2: Inventory Features)
2. Set Use cost tracking for stock item to Yes .
3. Press Ctrl+A to save the settings.
On enabling item costing for the company, the option Enable Cost Tracking? is available in ledger masters. Item cost tracking can be enabled from the ledger creation or alteration screens. Cost tracking can be enabled for stock item masters, and accounting ledgers grouped under Expenses & Incomes ( Direct/Indirect ), Purchases & Sales accounts.
1. Go to Gateway of Tally > Inventory Info > Stock Items > Create / Alter .
2. Set the option Enable Cost Tracking to Yes .
Note: The option Enable Cost Tracking will not be displayed if the Unit of measure for the stock item isn't selected.
3. Enter other details as required.
4. Press Enter to save the stock item.
1. Go to Gateway of Tally > Accounts Info > Ledgers > Create / Alter .
2. Enable Allow Stock Item Cost allocation? .
The Ledger Alteration screen appears as shown below:
3. Enter other details as required.
Note: The option Allow Stock Item Cost allocation appears only for the ledgers grouped under Expenses & Incomes ( Direct/Indirect ), Purchases & Sales Accounts.
4. Press Enter to save.
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