Inventory Storage Using Godowns/Locations

In your business, you may be managing the inventory in multiple physical locations, such as shops, warehouses, bins, racks, cabinets, and so on. In this case, you can use the Godowns/Locations capability of Tally.ERP 9. Using godowns will help you keep a record of inventory moving from one project or manufacturing stage to another. Similarly, you can also track the stock moving in and out of your business premises for consignment sales or job work. You can view stock reports for each godown and account for the movement of stock between godowns.

Create & group godowns: You can create individual godowns or multiple godowns in a hierarchy, as in the case of other masters in Tally.ERP 9, such as Ledger Group, Stock Group, Stock Category, and Cost Centre. You can use Godowns/Locations to create a hierarchy for shelves, bins, and even different sections of a warehouse. Tally.ERP 9 helps you to see the details of the materials at the top level as well as at each individual level, in a hierarchy of godowns.

For example, y ou can simply create Warehouse A, Warehouse B, and Warehouse C, or you can create Southern Region, with Warehouse A and Warehouse B under it, and Eastern Region, with Warehouse C and Warehouse D under it. Then, you can get the total inventory in Southern Region, and the inventory in Warehouse B.

Use multiple godowns: After creating godowns, you are prompted to choose one or more godowns for every movement of inventory. You can put all your stock into a single godown or use multiple godowns. For example, you can buy 1000 tons of an item, and split it as 300 tons in Warehouse A, and 700 tons in Warehouse B using the same purchase transaction. This is identical to the way you would allocate Cost Centre details, Order details, and so on.

When you split your inventory across different godowns, it is assumed that you want to treat them as independent lots and so track and value them accordingly. The Quantity, Rate, and Value that you see in Inventory Reports like Godown Summary or Stock Summary is a sum of these independent lots. If this is not wanted, you should not split the inventory across godowns.

Let's consider two scenarios.

Scenario 1
	Transaction 1: 10 Pcs	Transaction 2: 10 pcs	Average	Balance
Warehouse A (21 pcs)	Rs. 15/pc	Rs. 20/pc	Rs. 15/pc	1 pc valued at Rs. 15
Warehouse B (11 pcs)	Rs. 30/pc			1 pc valued at Rs. 30

As per scenario 1, Ta lly.ERP 9 will show a total of 2 pcs - one at Rs. 15, second at Rs. 30. This makes the average Rs. 22.50 per pc. If everything was done in a single warehouse, you would have 3 transactions, as in scenario 2.

Scenario 2
	Transaction 1: 10 Pcs	Transaction 2: 10 pcs	Transaction 3: 10 pcs	Average	Balance
Warehouse A (32 pcs)	Rs. 15/pc	Rs. 20/pc	Rs. 30/pc	Rs. 20/pc	2 pcs value averaged at Rs. 20/pc

If you have been handling inventory without creating any Godown, Tally.ERP 9 considers all inventory under Main Location . If you have enabled the Maintain Multiple Godowns option in F11, this internal godown will be visible to you for stock allocation and in the corresponding reports.

When you create another godown, all your past entries are initially reflected under Main Location . You can rename this internal godown any time. As in the case of other masters, if you alter anything in the Godown masters, the changes will reflect in the corresponding transactions and reports. And, you can delete a Godown if

● It does not store any stock items.

● It was not used in any transaction.

● It is not a parent of other godowns.

Tally.ERP 9 summarises details of each godown in the Godown/Location Summary report.

Use Godowns/Locations for Inventory Storage

If you are using more than one location, bin, rack, cabinet, and so on, create Godowns/Locations in Tally.ERP 9 to track your inventory. Similarly, if you keep inventory in different projects or maintain raw materials and finished goods in separate locations, Godowns/Locations will serve the purpose.

After you have created a Godown/Location, you can allocate inventory to the godowns of your choice, including the default godown Main Location .

Create Godowns/Locations

To start allocating your stock items in godowns, you need to create a godown first.

1. Press F11 (Features) > Inventory Features > and set Maintain multiple Godowns as Yes .

When you create a Godown/Location in Tally.ERP 9 for the first time, you are prompted to alter the existing internal godown ( Main Location ), where all your inventory is stored by default.

3. Name & alias : As in other masters, you can specify multiple aliases for the godown name.

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options.

Note: As in the case of other ledgers and groups, Primary is the root under which you can create a godown. By default, Main Location is available under Primary. When you create a godown, selecting Primary creates the godown at the same level as that of Main Location. If you select Main Location, it becomes the parent godown for the new godown.

Options	Descriptions
Provide aliases along with name?	You can add aliases for the godown for ease of reference.
Provide language alias for name?	You can provide aliases in the language you select.
Provide address for Godowns?	You can add the godown address by enabling this option. The godown address can be printed in your invoices by configuring invoice printing.

You can create godowns on the fly or move back and forth when creating godowns. See more...

Press Alt + C in the Under field to create more godowns on the fly.

You can also press Page Up and Page Down to move back and forth with the same type of masters or transactions.

For example, you have created the godowns Paper Shelf, Printer Shelf, and Cartridge Shelf. When you are creating a new godown, pressing Page Up will take you to Printer Shelf - alphabetically the last one in the existing list.

While you are creating godown, you can also create other inventory masters, as follows:

● Press Ctrl + G to create a stock group.

● Press Ctrl + I to create a stock item.

● Press Ctrl + U to create a unit.

Create multiple Godowns/Locations

If you have stored your inventory in more than one location, in Tally.ERP 9 you can choose to create godowns one by one, or create multiple godowns from a single screen. You can choose the parent godown from the same screen when creating multiple godowns.

● If you select Under Godown > All Items , you will be prompted to select the parent godown for each godown name that you specify under the Name column.

● If you select any other godown, say Under Godown > Main Location , this godown is treated the parent godown for all the godowns you create. However, you can change the hierarchy anytime later to suit your business preferences.

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options.

Allocate stock items to Godowns/Locations

Once you have created the required godowns, you can allocate your stock items to one or more godowns.

● To allocate the opening balance of your stock, in the Stock Item Alteration screen, select Opening Balance and press Enter .

● To allocate stock items during voucher entry, in the Voucher Creation screen, select the stock item and press Enter .

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.

2. In the Stock Item Allocation screen, provide the Quantity if UoM is defined for the item; otherwise, provide the Amount .

The quantities and amount entered in the allocations screen are consolidated and displayed in the voucher. The Opening Balance Quantity or Value specified in the stock item must be completely allocated among the selected godowns.

Alter, Display, and Delete Godowns/Locations

Alter Godowns

You can alter details of godowns and the changes will reflect in all dependent Masters, Transactions, and Reports. Use Gateway of Tally > Inventory Info. > Godowns > and select Alter .

Display Godowns

To view the details of the godown you have created, use Gateway of Tally > Inventory Info. > Godowns and select Display .

Delete Godowns

You can delete a godown if it is not used in any other master or transaction. Open the godown you wish to delete, and press Alt + D .

Note: You cannot delete the default godown in Tally.ERP 9.

● Before you can delete a parent godown in a hierarchy, you will need to delete the godowns created under it.

● Similarly, to delete a godown that has stock items, move the stock items to a different godown using inter-godown transfer. You do not have to delete the transaction to delete the godown.

Transfer Inventory Between Godowns/Locations

You can move your stock from one Godown/Location to another using Stock Journals. In case you are into manufacturing or job work, Tally.ERP 9 provides the flexibility to use specific voucher entry modes of Stock Journal to record transfer of materials between godowns.

2. Under Source (Consumption) , specify details of the stock items that you want to transfer.

● Specify the Quantity here. Rate and Amount are auto-filled from the stock item. You can alter these values, as needed.

If you have not specified the Opening Balance (Quantity, Rate, and Amount) in the item master, you can enter only the Amount here.

● Select the stock item and the destination godown. For inter-godown transfers, select the same stock item as in the Source .

As always, you can create stock items and godowns on the fly by pressing Alt + C .

Note: You can also select a different stock item as finished goods in case the source stock item is changing form, especially in case of manufacturing. For more information, refer to Manufacturing Journal Voucher .

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.

You can configure printing of the stock journal to get the godown names and addresses in the voucher when printed. As in all other vouchers, press Alt + P > F12 (Configure) to explore other print configurations.

Set up destination godown : In case you are transferring stock items from one or more godowns to a single destination godown, you can pre-set the destination godown using a voucher class:

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.

You can print the stock journal voucher with the destination godown name appearing on the top of the printed voucher. See Transfer Journal Voucher for more information. As in all other vouchers, press Alt + P > F12 (Configure) to see other print configurations.

Create Hierarchy of Godowns/Locations for Area-wise Inventory Storage

You can create multiple godowns in a hierarchy, to get a consolidated view of your inventory in different regions, zones, warehouses, cabinets, bins, and so on.

● Create the godown Southern Region. When creating godowns Warehouse A and Warehouse B, in the field Under , select Southern Region.

● Similarly, when creating Store Room B1 and Store Room B2, select Warehouse B.

● Warehouse B will show 500 pcs - the total stock available in Warehouse B, Store Room B1, and Store Room B2.

● Southern Region will show 1450 pcs - the total stock in Southern Region and all other godowns under it.

1. In the Stock Item master, press F12 , and set Allow advanced entries in masters to Yes .

2. Gateway of Tally > Inventory Info. > Masters > Godowns > Alter , and select the godown.

3. Set Allow storage of materials to No . With this, Southern Region will not be shown for Item Allocation.

Print Godown/Location Address in Invoices

In case of a sale, stock transfer, or manufacturing, the transporter needs to know the address of godowns where the materials need to be picked from and/or delivered to. If you have provided the address of the Godowns/Locations, you can print the source and destination godown addresses in the invoices. This helps in referring to the addresses in the invoice during stock transfers.

These configurations will be saved for the selected voucher type and the address will be printed on the vouchers.

What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options.