Integrate Accounts with Inventory in F11: Features (F1: Accounting Features) has a significant effect on the Balance Sheet and Profit & Loss Account.
If Accounts with Inventory is set to Yes in F11: Accounting Features/ Inventory Features, the stock/inventory balance figures are automatically updated from the inventory records. You may also drill down to Stock Register from the Balance Sheet.
If the option Accounts with Inventory is set to No in F11: Accounting Features/ Inventory Features, the inventory values are ignored and closing stock balances are entered manually.
Note: Sometimes, Stock records may contain compensating errors which are caused by incorrect allocations to the Stock Items. This feature of Tally enables the finalisation of financial books without considering such errors.