In Tally.ERP 9, the value of closing stock displayed in the Balance Sheet is based on the Costing Method defined for each Stock Item in the Stock Item Master. The general principle of accounting is to value the stock at purchase cost or market value, whichever is lower. Tally.ERP 9 allows you to enter the closing stock value manually.
For example, consider that the market value of stock on 31-12-2008 is Rs.25,000. To show this amount as the closing stock value,
Set Integrate Accounts and Inventory to No in F11: Features (F1:Accounting Features).
Create a ledger Stock (under Stock-in-Hand).
In Closing Balance of Balance Sheet, specify date as 31/12/08 and value as 40,000.
The balance sheet is displayed as shown.
When the balances are carried forward to the next year, the opening value of stock would be taken as 25,000, if Integrate Account and Inventory option is set to No in F11: Features (F1:Accounting Features).
If this feature is set to Yes, the manual entry is not considered and the value is calculated automatically based on the Inventory values. Tally.ERP 9 allows the flexibility to toggle the option Integrate Accounts with Inventory to Yes or No.