Accounting and Inventory Management in TallyPrime
Accounting in TallyPrime or TallyPrime accounting enables managing your accounting entities, inventory movements, financial & banking transactions, and provides real-time reports on all these.
TallyPrime also supports tracking inventory in your business, from purchase order to sales. Stock tracking can be across godowns/locations, or different stages of processing.
Accounting in TallyPrime
Accounting in TallyPrime or TallyPrime accounting enables managing your accounting entities, inventory movements, financial & banking transactions, and provides real-time reports on all these.
You also get the required options to handle your banking transactions and reconciliation, business projections, multiple currency handling, interest on outstandings, and accounts verification.
TallyPrime classifies transactions as accounting or inventory based on the nature of the accounting entries and the accounts they affect. The generic category Accounting in TallyPrime includes the chart of accounts, journal entries, contra vouchers, and other vouchers used for checking the impact of notional transactions without immediately affecting your accounts. Other features covered under the section include the accounting and financial reports in TallyPrime, Banking Utilities, options to control your finances, facility to manage use of different currencies in your business, calculation of interest for the receivables, and options to check the accuracy of accounting entries. You also get a Statistics report that displays the summary of the types of accounts and vouchers in your accounts.
Accounting Entry refers to the records you maintain to manage your business on a daily basis. You can use Journal Vouchers to record any type of transaction. For ease of recording, TallyPrime provides different voucher types like sales, purchase, receipt, payment, and so on. You can use contra vouchers for money transfers between different accounts in the business, memorandum vouchers for expenses with currently unknown purposes, reversing journals for checking the impact of transactions before they are effected, and so on. Additionally, you can mark a voucher as optional when you are not certain about the finalisation of a transaction. You can also record a voucher with future date for a transaction that is planned to happen in the future,by marking the voucher as Post-Dated. Steps to create all vouchers are similar, and only a few specifics vary from a voucher type to another. You also get a facility to pre-configure ledger selections using Voucher Class so that your voucher entry becomes faster and less error-prone.
Edit Log for transactions and masters: In TallyPrime Edit Log Release 2.1 and TallyPrime Release 2.1, you can view Edit Log for transactions and masters. The facility cannot be disabled in TallyPrime Edit Log while in TallyPrime, you can enable or disable it, as needed. Edit Log in TallyPrime helps you track all the activities performed in transactions and masters that will have a financial impact on your Company data.
Chart of Accounts in TallyPrime comprises of the accounting ledgers, and a means to group them for the purpose of accounting and financial reporting. TallyPrime provides 28 predefined accounting groups, out of which 15 are primary groups and 13 are secondary groups, under the categories, assets, liabilities, incomes and expenditures. These groups are provided to ensure the generation of meaningful reports as per accounting standards. In addition, you can create groups under the major categories, assets, liabilities, incomes and expenditures, or any of the default primary or secondary groups. For example, Bad Debts account under Current Assets.
Accounting & Financial Reports is a major need to run your business successfully. TallyPrime provides reports like Transaction registers, Day Book, Trial Balance, Balance Sheet, Schedule VI Balance Sheet, Profit & Loss Account, Cash & Fund Flow, Ratio Analysis, Cash & Bank Book, and so on, with real-time data. Similarly, Receivables and Payables reports provide direct aid in outstanding management.
Banking Utilities are for managing your transactions that involve one or more banks. You can record receipt of money from your parties into your accounts by means of cheques, DDs or electronic payments. Such receipts can be recorded even when you are uncertain about the account to which you are depositing the payment instrument, and tag the account later. Similarly, you can record payments made to your suppliers using cheque, DDs or electronic payments. You can print details on pre-printed cheque leaves received from your banks, or even print the cheque on blank stationery for your records.Generate deposit slips for cheques, DDs or cash, or sent electronic advise to selected banks to complete banking transactions. There are options to do reconciliation of bank statements electronically, or otherwise. Bank Book assists in checking all your bank transactions.
Financial Controlling options enable you to manage different cost centres for allocation of incomes and expenses, define budgets and track budget variance, and define scenarios to check the impact of planned expenses on your business. All these what-if analysis can be done using non-accounting transactions like optional vouchers, memorandum, or reversing journals – without affecting your books directly -to ensure accuracy of your accounts at any point in time.
Define different currencies that you accept in your business transactions, so that you can do accurate conversions, and check forex gain or loss,and account them appropriately.
Calculation of interest as per the practices you follow for overdue receivables or payables, and loan given or received is another facility available in TallyPrime.You can define interest for a ledger amount as a whole, or transaction-by-transaction as required in your business.
Verification of your books can be done anytime, even if you hand over some work to someone or your auditor makes changes in transactions to ensure accuracy of accounts. You can enable marking the vouchers that get modified or added by your internal auditor or accountants when finalising your accounts, or tax consultant before filing returns. After they complete their work you can verify the changed or added vouchers and take action, if needed.
Statistics gives the number of all the vouchers that are created under each voucher type, and all the types of accounts in your books of accounts. You can configure this report to view different details. As in other reports, you can drill down to the transaction level, if needed.
In this section
- Accounting Entry
- Chart of Accounts
- Accounting & Financial Reports
- Banking Utilities
- Financial Controlling
- Currencies
- Calculate Interest
- Mark Changed Vouchers
- Statistics
Inventory Management in TallyPrime
TallyPrime supports tracking inventory in your business, from purchase order to sales. Stock tracking can be across godowns/locations, or different stages of processing.
Inventory tracking covers stock changes due to purchase and sales processes, delivery or receipt as samples, movements across godowns, all adjustment entries including those caused by physical verification, and so on. You can also use batch details for items, if applicable. You can do item cost tracking and costing for jobs/projects, if needed. Various reports are available to help you track all your inventory transactions.
Inventory Transactions refers to the records you maintain about all inventory movements, including new purchases and sales, that are part of your daily business. You can use the corresponding voucher type in TallyPrime for different transactions. You can also use Stock Journal to record different types of stock movements, like those between your own godowns/locations, or adjustments due to leakage or damage. Tracking of additional cost or expenses incurred due to transfer of goods is also possible. TallyPrime provides specialised voucher types, along with the flexibility to assign different numbering styles for vouchers.
What’s more!
If you have opted for Edit Log, then you can track changes made in the Stock Items and inventory entries.
When your business needs to do a stock take or physical verification of available items, and record the findings, you can use the corresponding voucher types. Any discrepancy can be updated using adjustment entries as per your business processes.
Stock Management options in TallyPrime provides the flexibility to define your stock items, group them if needed, and record transactions as per your needs. Stock item details that you can store in TallyPrime includes the name of the item to the different units of measurements used in transactions, taxability of items, and prices. You can group items based on any identified feature for ease of management using Stock Groups. For analysis purposes you can use a parallel grouping method called Stock Category, when Stock Groups are already used for one type of grouping.
Inventory Reports is a basic tool to run your business successfully. TallyPrime provides reports like Stock Summary, Movement Analysis, Aging Analysis, Inventory Reorder Status, Godown Summary, and so on, with real-time data.
Tracking Item Cost enables you to analyse the running cost and profitability of the item being tracked through manufacturing, sales, purchase, and so on. It starts with accumulation of costs and revenue for a quantity of the stock item across various transactions. It helps you to ascertain various costs associated with production and distribution, and thus determine the sale price of finished goods and overall profitability.
Godowns/Locations in TallyPrime enables you to manage tracking your inventory storage and transactions from different physical godowns/locations, cabinets, racks, or bins used in your business. You can track the inventory for your projects, and different manufacturing stages, including that of scrap and byproducts. Stock moving in or out of your business premises for consignment sale or job work is another aspect that you can track.
Batches feature in TallyPrime helps in better management of stock items with limited shelf life or perishable goods. You can track items based on manufacturing and expiry dates, as per your needs.
Manufacturing & Job Work transactions can be recorded using the different inventory vouchers in TallyPrime. You can define Bill of Material (BOM) as needed and use in inventory transactions.
Job Costing option allows you to track the cost of individual projects. You can track the inventory allocation to each project, periodically evaluate the usage, and arrive at the cost.
Refer to the following topics for detailed information:
