Creating Stock Item Finished Goods (Quantum)

To create a Stock Item – Finished Goods,

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

1. Enter the name of the Stock Item e.g. AquaMini – 200 ml in the Name field.

2. Select the Group Name e.g. Primary in the under field.

3. Select the unit of measurement e.g. U (Number)  of the stock item in the Units field.

4. Select the unit of measurement e.g. L [Liter (s)] of the stock item in the Alternate Units field (Use Alt +C to create Unit of Measurement).

5. Specify 1 L = 5 U in Where field.

Note: Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.

6. Enable Set Components (BoM) to Yes and press enter to view Stock ltem Multi Components (M BOM) screen

Note: The Bill of Material (BOM) details provided here will be used for Production of the stock Item.

7. In Stock ltem Multi Components (M BOM) screen

8. In Name of BOM field enter the BOM name

Note: In Tally.ERP 9 you can create Multiple BOM for a single finished goods. This feature is provided in Tally.ERP 9 Release 3.0.  For more information on creating Multiple BOM refer the topic - Creating Bill of Materials for a Stock Item

8. In Stock ltem Components (BoM) screen

9. In Unit of manufacture field enter as 1

10. Under Item and Quantity field enter the details as shown

9. In Tariff Classification field select the applicable tariff classification e.g. Water from the List of Tariff Classifications

10. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen.

11. In the Excise Details Screen

12. Excise Unit Name: By default Tally.ERP 9 displays ABC Company as Excise Unit Name.

Note: In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location

To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).

• Reporting UOM: select L (liters) as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.

Note: As Per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Mineral Water is ‘L (Liters)’, so it is must to select L (Liters) as the Reporting UOM.

• In Conversion Factor field Set as 1 L = 5 U

Note: Tally.ERP 9 prompts the user to select the Conversion Factor only when the alternate Item is enabled and defined for stock item

• Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.

• In Duty Details screen

• In Valuation Type field Select Ad Quantum from the List of Valuation Type.

• Select the Basic Excise Duty in the Type of Duty field from the List of  Excise Duty classifications.

• In Applicable From field mention the Date from when the specified Rate of Duty is applicable

• Specify the Rate of Duty as Rs. 2 (per liter).

Note: In case of Ad Quantum, duty is payable at the rate specified per Unit of Quantity. Example: Duty on Sugar is based on per Kg basis (Rs.3/Kg).

• Select the Education Cess as the second duty  in the Type of Duty field from the List of  Excise Duty classifications.

• In Applicable From field mention the Date from when the specified Rate of Duty is applicable

• Specify the Rate of Duty as Rs. 0.04 (per liter).

• Select the Secondary Education Cess as the third duty in the Type of Duty field from the List of Excise Duty classifications.

Note: Secondary and Higher Education Cess is applicable from 11-5-2007

• In Applicable From field mention the Date from when the specified Rate of Duty is applicable

• Specify the Rate of Duty as  Rs. 0.02 (per liter)

• In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types.

• Set the option Set/ Alter Reporting BOM to No.

Note: Define the Stock Item Components (BOM) under the option Set/ Alter Reporting BOM only when the Stock item has different Stock Item Components than the components defined under the BOM for Production.  BOM Defined under this option is used only for reporting.  

12. Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 12.5%.

13. Press Enter to accept and save.

Note: Where Excisable Commodity attracts Additional duties of Excise and Special duties of Excise and so on, the same can activated as required from the List of Excise Duty Classifications.