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Inventory Only Entry

Inventory Management in TallyPrime allows you to keep track of your inventory from placing an order for goods with your supplier to getting them delivered. You can keep track of the goods at all stages. You can send a receipt note to your supplier once you receive the goods at your location. You can record the transfer of materials from one location to another and have visibility of what goods and quantity are available with you at all times. You have features that will help you place an order for goods with your supplier when the stock is below the limit that is defined by you.

You can also track the items that you have sent to your customers, send them delivery notes with the goods sent. Record job works vouchers and manufacturing journal that will give you a clear view of what quantity of items and what items were used for manufacturing. You also have the option to record the finished good, co-products, by-products, and scrap that are generated during manufacturing.

Once you know how to enter a transaction in TallyPrime, you can enter any transaction in a similar way. For faster data entry operation you can also use voucher class in TallyPrime.

Stock Journal

You can keep track of all your stock adjustments using a Stock Journal in TallyPrime. When you have to transfer stock from one location to another, keep track of additional cost or expenses incurred due to transfer of goods, keep track of wastage of goods or need to update the right quantity of goods, you can do all of these using a Stock Journal voucher.

The stock adjustment may be due to the following reasons:

Inter-Location Transfer: This is useful to transfer the goods from one location to another. The quantity of stock remains the same, but the location changes.

  • Additional Cost/Expenses involved in the Transfer of goods: You can also account the additional cost incurred in connection of transfer of materials from one location to another.
  • Accounting for Wastage of stock or shortage of stock: There may be a shortage or wastage of stock items, the quantity may have got changes. In such cases, you have to enter a stock journal to account for the increase or decrease in the Stock Item.

Manufacturing process

If you are involved in the manufacturing process in which raw materials are consumed and finished goods are produced, then you can create a manufacturing Journal Voucher also.

  1. Gateway of Tally > Vouchers > press Alt+F7 (Stock Journal).
    Alternatively, Alt+G (Go To) > Create Voucher > press Alt+F7 (Stock Journal).
    As in case of other vouchers, if you want to change the voucher date, press F2 (Date).
  2. Enter the reference number in Reference No. field, if any.
    • If you do not see this option, press F12 (Configure) > set the option Provide Reference No. and Date as Yes.
    • If you need to use this option only for the current master, press Ctrl+I (More Details) > type or select Provide Reference No. and Date > and press Enter.
      Set Reference No. in Journal Voucher
  3. Under Source (Consumption):
    1. Select the Name of Item from the List of Stock Items, which needs to be transferred under Source.
      As in other transactions, you can create the item on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) >Create Master> type or select Stock Items> press Enter.
    2. Select the Location from the List of Locations, from which goods are getting transferred.
      Note: The Location address can be printed in a stock journal voucher.
    3. Enter the quantity of the items that is getting transferred, along with the rate per unit. The amount will appear automatically.
  4. Under Destination (Production):
    1. Select the Name of Item from the List of Stock Items under the column Destination.
      As in other transactions, you can create the item on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) >Create Master> type or select Stock Items> press Enter.
    2. Select the Location from the List of Locations, to which goods are being transferred.
    3. Enter the quantity of the items that is being transferred. The rate and amount will be displayed automatically.
      Note: You can have a different Rate for Source (Consumption) and for Destination (Production) column for the same Stock Item.
  5. When there are some Additional Cost/Expenses incurred, you can account the same in the Stock Journal.
    After mentioning the quantity, rate and amount under Destination (Production), the Additional Cost Details screen will be displayed. Enter the additional cost/expense incurred. (not appearing while passing the voucher entry).
    If you do not see the Additional Cost Details screen:
    1. Press Alt+G (Go To) > Alter Master > select Voucher Type > Stock Journal.
    2. Set Track Additional Costs for Purchases to Yes.
      Enter Additional Cost Details
      What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options.

For F12 Configurations of Stock Journal voucher, click here.

Options

Description

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option toNofor faster Voucher entry.

Provide Reference No. and Date

Enable this option to add the voucher reference field in Stock Journal also.

Provide Additional Descriptions for Stock Items

Can Provide the additional description for the stock Item in the transactions

Show message on negative Stock Balance

By default, a warning message is displayed for negative stock balance. If you set it toNo, the error message will not be displayed.

Use Expired Batches for Stock items

By default, the expiry batches in the list of active batches during voucher entry are displayed. If you set it toNo, expiry batches will not be displayed in the List of Active batches.

Show Batches with Zero Quantity

It will display the zero quantity batches for the stock item

Show Balance as on Voucher Date

By default, the ledger current balance up to last voucher entry date are displayed. If you set it to Yes, it will display the ledger balance up to current voucher entry date

Skip Co-product/By-Product/Scrap details

When the option Skip Co-Product/By-Product/Scrap Stock Item is set to Yes, and while recording a manufacturing journal for a stock item for which the BoM is created by capturing the details of Co-Products/ By-Products /Scrap; then the configuration is ignored and the details of Co-Products/ By-Products /Scrap are captured. You can also modify the details in Co-Products/By-Products/Scrap section.

(For Manufacturing Journals only)

Show Compound Unit based on Rate

Enable this option to show the compound unit of item based on the unit provided in the Rate Per column

Show details of Compound Unit

Enable this option to display details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as12 Kgs.250 grms

         6. Provide Narration, if any and accept the voucher. As always, you can use Ctrl+A to accept.

Stock Journal voucher Class

Stock Journal classes allow you to handle transfers from one location to another, for companies having Multi-Location Inventory and at least two location. Click Stock Journal Voucher Class for more details.

Transfer of materials from one location to another

  1. Gateway of Tally > Vouchers > press Alt+F7 (Stock Journal).
    Alternatively, Alt+G (Go To) > Create Voucher > press Alt+F7 (Stock Journal).
  2. If you want to change the voucher date, press F2.
  3. In the Source (Consumption) section, select the item and the location from where you to transfer the goods.
  4. Specify the Quantity. The Rate and Amount field gets prefilled if you have specified it for the goods selected.
  5. In the Destination (Production) section, select the item and the location to where the goods should be sent.
  6. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Delivery Note

It is important to keep track of the goods that you have sent or received from your vendors. It will be a document of proof between you and your vendor that goods are delivered as per order and accepted in good condition to avoid discrepancies during payment. You can record the order information like item details, quantity, delivery address, the location from where the item is being sent, and so on.

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Delivery Note.
    Alternatively, Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Delivery Note.
    In case the voucher is inactive, you will be prompted to activate the voucher type. Select Yes or press Y to proceed.
  2. If you want to change the voucher date, press F2.
  3. Select the party to whom the goods have to be delivered in the Party A/C name field. Provide the party and order details.
  4. Select the Sales ledger.
    As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
  5. Select the items that are being sent for delivery. Include the item details like, quantity, rate, and any specific location that is used to send the item.
    For F12 configurations of Delivery Note voucher, click here.

Options

Description

Provide Buyer details

Enable this option to enter buyer details in the Party Details screen

Provide Dispatch, Order and Export details

Enable this option to view the Party Details screen, when a party ledger is selected during invoice entry. Dispatch details, order details, and buyer’s details can be recorded.

Select common Ledger Account for Item Allocation

Enable this option to allocate all the items selected in the invoice to a common sales or purchase account. If each item in the invoice has to be allocated to different ledger accounts, then this option should be set to No

Provide Additional Descriptions for Ledgers

Enable this option to specify the description for each Ledger selected in the Accounting invoice entries

Provide Additional Descriptions for Stock Items

Enable this option to specify description for each item selected in the invoice

Show message on negative Stock Balance

Enable this option to warn if the item selected reaches a negative balance

Modify all fields during voucher entry

Default order/delivery note entries appearing in the invoice can be changed during invoice entry. Enable this option to permit modification of all fields

Provide details to preclose orders

 

Use Expired Batches for Stock items

By default, this option is set to Yes. Disable this option to not include expired batches in the list of batches displayed at the time of entry

Show Batches with Zero Quantity

 

Select Cost Center/Class

By default, this option is set to No, Enable this option to select the Cost Center/Class in the Voucher entry

Show list of Cost Centers

 

Show list of Employees

 

Provide Reference No. and Date

Enable this option to add the voucher reference field in Stock Journal also

Provide Accounting Allocations in Order/Delivery Note

Enable this option for faster data entry at the time of entering sales/purchase invoices against the deliver or receipt notes

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No for faster Voucher entry

Show Turnover from selected Party A/c

Enable this option to view the turnover achieved till date with a particular customer

Show Current Balance of Ledgers

By default, the this option is set to yes, it will display ledger current balance up to last Voucher entry

Show Balances as on Voucher date

By default, the ledger current balance up to last voucher entry date are displayed. If you set it to Yes, it will display the ledger balance up to current voucher entry date

Show final Ledger Balance

 

Consolidate quantity of Stock Item with same rate

 

Show Compound Unit based on Rate

Enable this option to show the compound unit of item based on the unit provided in the Rate Per column

Show details of Compound Unit

Enable this option to display full details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as12 Kgs.250 grms

Provide Marks or Container No

Enable this option to specify Marks for every item selected in the invoice

Modify MRP in Vouchers

The MRP rate defined in the Stock Item will display in the voucher entry screen, Enable this option to modify the MRP in voucher

Calculate Tax on Current Subtotal

(Else Calculations are on inventory total only)

Enable this option to calculate tax on the current subtotal value and not on inventory total value

Calculate MRP on Billed Quantity

 

Modify Tax Rate details of GST

Enable this option to modify tax details for GST

Export e-Way Bill details after saving Voucher

 

Allow Tax difference up to

 

Modify Tax Rate details for VAT

Enable this option to modify tax details for VAT

Provide Excise details

Enable this option to provide the Excise details

       

       6. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Rejection In

A Rejection In voucher is used when goods are rejected or returned by the customer. The transaction is recorded after raising a delivery note, but before raising a sales voucher. Refer to Rejections In for more information.

Receipt Note

When you purchase goods from your supplier, and the supplier sends these goods to you, you may want to acknowledge that you have received the goods that you had requested. To account for this, you can record a receipt voucher in TallyPrime. The receipt note includes your supplier information, goods that you have received, amount, and so on. Receipt Note voucher keeps track of receipt of goods at your location.

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Receipt Note.
    Alternatively, Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Receipt Note.
    In case the voucher is inactive, you will be prompted to activate the voucher type. Select Yes or press Y to proceed.
  2. If you want to change the voucher date, press F2.
  3. Enter the Reference No. and Date.
  4. Select the party from whom you have received the goods and the respective purchase ledger.
  5. Select Order No(s) from the List of Orders, if a purchase order exists for that supplier.
    If the Order No(s) is selected, the item name, quantity, rate and amount will be displayed automatically.
  6. Enter the required information in the Party Details screen.
  7. Press F12 (Configuration) and set the options Provide Supplier details and Provide Receipt, Order, and Import details to Yes to provide the supplier details.
    If you need to use this option only for the current voucher, press Ctrl+I (More Details) > type or select Order details> and press Enter.
  8. Press Ctrl+A to accept and return to the voucher screen.
  9. The Stock Item Allocations screen appears, Select existing Tracking No. or create a new tracking number.
    Note: A Receipt Note with Tracking No. marked as Not Applicable will be an inventory document, affecting only the inventory values. This will not affect the accounts.
    A purchase voucher with Tracking No. marked as Not Applicable will update the accounts without increasing the stock. The Purchase Bills Pending list is generated as Bills Recd. but Goods not Recd.
  10. Select the items and include the item details like quantity, rate, and any specific location.

For the F12 configurations of Receipt Note voucher, click here.

Options

Description

Provide Supplier details

Enable this option to enter supplier details in the Party Details screen

Provide Receipt, Order and Import details

Enable this option to view the Party Details screen, when a party ledger is selected during invoice entry. Receipt details, order details, and Import details can be recorded

Select common Ledger Account for Item Allocation

Enable this option to allocate all the items selected in the invoice to a common sales or purchase account. If each item in the invoice has to be allocated to different ledger accounts, then this option should be set to No

Provide Additional Descriptions for Ledgers

Enable this option to specify the description for each Ledger selected in the Accounting invoice entries

Provide Additional Descriptions for Stock Items

Enable this option to specify description for each item selected in the invoice

Show message on negative Stock Balance

Enable this option to warn if the item selected reaches a negative balance

Modify all fields during voucher entry

Default order/delivery note entries appearing in the invoice can be changed during invoice entry. Enable this option to permit modification of all fields.

Provide details to preclose orders

 

Use Expired Batches for Stock items

By default, this option is set toYes. Disable this option to not include expired batches in the list of batches displayed at the time of entry

Show Batches with Zero Quantity

 

Select Cost Center/Class

By default, this option is set to No, Enable this option to select the Cost Center/Class in the Voucher entry

Show list of Cost Centers

 

Show list of Employees

 

Provide Reference No. and Date

Enable this option to add the voucher reference field in Stock Journal also

Provide Accounting Allocations in Order/Receipt Note

Enable this option for faster data entry at the time of entering sales/purchase invoices against the delivery or receipt notes

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No for faster Voucher entry

Show Turnover from selected Party A/c

Enable this option to view the turnover achieved till date with a particular customer

Show Current Balance of Ledgers

By default, the this option is set to yes, it will display ledger current balance up to last Voucher entry

Show Balances as on Voucher date

By default, the ledger current balance up to last voucher entry date are displayed. If you set it toYes, it will display the ledger balance up to current voucher entry date

Show final Ledger Balance

 

Consolidate quantity of Stock Item with same rate

 

Show Compound Unit based on Rate

Enable this option to show the compound unit of item based on the unit provided in the Rate Per column

Show details of Compound Unit

Enable this option to display full details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as12 Kgs.250 grms

Provide Marks or Container No

Enable this option to specify Marks for every item selected in the invoice

Provide No. Of Packages

 

Modify MRP in Vouchers

The MRP rate defined in the Stock Item will display in the voucher entry screen, Enable this option to modify the MRP in voucher

Calculate Tax on Current Subtotal

(Else Calculations are on inventory total only)

Enable this option to calculate tax on the current subtotal value and not on inventory total value

Calculate MRP on Billed Quantity

 

Modify Tax Rate details of GST

Enable this option to modify tax details for GST

Export e-Way Bill details after saving Voucher

 

Allow Tax difference up to

 

Modify Tax Rate details for VAT

Enable this option to modify tax details for VAT

Provide Excise details

Enable this option to provide the Excise details

       9. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Rejection Out

The Rejections Out Voucher records goods that are rejected and returned to a supplier.

Physical Verification

When there are differences in the actual stock available at your location and the stock that is displayed in your company books, you can record a Physical Stock voucher. The physical stock voucher will reflect the stock that is actually available for use or sale for your business.

  1. Gateway of Tally > Vouchers > press Ctrl+F7 (Physical Stock).
    Alternatively, Alt+G (Go To) > Create Voucher > press Ctrl+F7 (Physical Stock).
  2. If you want to change the voucher date, press F2 for stock taking date.
  3. Select the stock item and location.
    As in other transactions, you can create the item or location on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Item > and press Enter.
  4. Select the Batch number (Batch details will appear only if, Batch wise details are activated in the Stock Item Master screen) for which the Physical Stock quantity is to be recorded.
  5. Enter the Physical Stock quantity. The item quantity will be updated in your company books with the details that you record in this voucher.

For F12 configurations of Physical Stock voucher, click here.

Options

Description

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No for faster Voucher entry

Provide Additional Descriptions for Stock Items

Provide the additional description for the stock Item in the transactions

       6.Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Material In

When you receive the raw material from your customers for job works, you can keep track of the goods received using Material In voucher. Refer to Material In for more information.

Record Material In voucher

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material In.
    Alternatively, Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material In.
    In case the voucher is inactive, you will be prompted to activate the voucher type. Select Yes or press Y to proceed.
  2. Select the supplier’s (Job Worker)/customer’s (Principal Company) name as the Party A/c Name. The Party Details screen appears.
  3. Select the required Order No(s) and provide the other details. 
    As always, press Ctrl+A to save the Party Details screen, and return to the inventory voucher.
  4. Select the appropriate location in Source Location field, based on the type of Job Order.
  5. In case the Job Worker is receiving the raw material from the principal manufacturer, the Source Location should be set to Not Applicable.
  6. In case the Principal Manufacturer is receiving the finished goods from the Job Worker, the Location enabled with Our Stock with Third Party should be selected for Consumption Location.
  7. The Source Location appears as the Consumption Location when the Principal Manufacturer receives the finished goods from the Job Worker, using the:
    • Location enabled with Our Stock with Third Party
    • Material in voucher type configured to Allow Consumption
  8. Select the stock item.
  9. In the Stock Item Allocations screen:
  10. Set the option Consider as Primary Item to Yes, if the selected item is the primary item for which the consumption has to take place.
  11. Select the required BoM Name.
  12. Set Consider as Scrap to Yes, if the selected item is a scrap item. This option will be skipped when Consider as Primary Item is set to Yes.
  13. Select the Location. Enter the Quantity and Rate. The Amount appears.
    Note: You can set the stock item either as Primary Item or Scrap. For the location selected in the Stock Item Allocation screen, ensure the options Our Stock with Third Party and Third Party Stock with us are set to No.
  14. As always, press Ctrl+A to accept the screen and return to the inventory voucher.

For F12 configurations for Material In voucher, click here.

Options

Description

Provide Party details

Enable this option to enter party details in the Party Details screen

Provide Order and Export/Import details

Enable this option to view the Party Details screen, when a party ledger is selected during invoice entry. Order details, and Export/Import details can be recorded

Provide Reference No. and Date

Enable this option to add the voucher reference field in Stock Journal also

Allow Auto Consumption of Stock Items

 

Provide Additional Descriptions for Ledgers

Enable this option to specify the description for each Ledger selected in the Accounting invoice entries

Provide Additional Descriptions for Stock Items

Enable this option to specify description for each item selected in the invoice

Show message on negative Stock Balance

By default, a warning message is displayed for negative stock balance. If you set it toNo, the error message will not be displayed

Modify all fields during voucher entry

Default order/delivery note entries appearing in the invoice can be changed during invoice entry. Enable this option to permit modification of all fields

Use Expired Batches for Stock items

By default, the expiry batches in the list of active batches during voucher entry are displayed. If you set it to No, expiry batches will not be displayed in the List of Active batches

Show batches with Zero Quantity

It will display the zero quantity batches for the stock item

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No for faster Voucher entry

Show Current Balances of Ledgers

By default, the this option is set to yes, it will display ledger current balance up to last Voucher entry

Show Balances as on Voucher date

By default, the ledger current balance up to last voucher entry date are displayed. If you set it toYes, it will display the ledger balance up to current voucher entry date

Show final Ledger Balance

 

Consolidate quantity of Stock Items with same rate

 

Show Compound Unit based on Rate

Enable this option to show the compound unit of item based on the unit provided in the Rate Per column

Show details of Compound Unit

Enable this option to display details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as12 Kgs.250 grms

Provide Marks of Container No.

Enable this option to specify Marks for every item selected in the invoice

Provide No. of Packages

 

Provide Excise details

 

Modify Tax Rate details for Excise

 

Modify Tax Rate details for Excise Manufacturer

 

    15. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Material Out

When you send the raw material to your customers for job works, you can keep track of the goods sent using Material Out voucher.

Record Material Out voucher

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material Out.
    Alternatively, Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material Out.
    In case the voucher is inactive, you will be prompted to activate the voucher type. Select Yes or press Y to proceed.
  2. Select the supplier’s (Job Worker)/customer’s (Principal Company) name as the Party A/c Name. The Party Details screen appears.
  3. Select the required Order No(s) and provide the other details. 
    As always, press Ctrl+A to save the Party Details screen, and return to the inventory voucher.
  4. Select the appropriate location in Destination Location field, based on the type of Job Order.
  5. In case the Job Worker is receiving the raw material from the principal manufacturer, the Destination Location should be set to Not Applicable.
  6. In case the Principal Manufacturer is receiving the finished goods from the Job Worker, the Location enabled with Our Stock with Third Party should be selected for Consumption Location.
    In case the Job Worker is for issuing the finished goods to the principal company, the Destination Location should be set to Not Applicable.
    In case the principal company is issuing the raw material to the Job Worker, the Location enabled with Our Stock with Third Party should be selected for Destination Location.
  7. Select the stock item.
  8. In the Stock Item Allocations screen, select the Location. Enter the Quantity and Rate. The Amount appears.
    Note: The Component of field will automatically display the Primary Item of the selected component.
  9. Press Ctrl+A to accept the screen and return to the inventory voucher.

For F12 configurations of Material Out voucher, click here.

Options

Description

Provide Party details

Enable this option to enter party details in theParty Detailsscreen

Provide Order and Export/Import details

Enable this option to view the Party Details screen, when a party ledger is selected during invoice entry. Order details, and Export/Import details can be recorded

Provide Reference No. and Date

Enable this option to add the voucher reference field in Stock Journal also

Allow Auto Consumption of Stock Items

 

Provide Additional Descriptions for Ledgers

Enable this option to specify the description for each Ledger selected in the Accounting invoice entries

Provide Additional Descriptions for Stock Items

Enable this option to specify description for each item selected in the invoice

Show message on negative Stock Balance

By default, a warning message is displayed for negative stock balance. If you set it toNo, the error message will not be displayed

Modify all fields during voucher entry

Default order/delivery note entries appearing in the invoice can be changed during invoice entry. Enable this option to permit modification of all fields

Use Expired Batches for Stock items

By default, the expiry batches in the list of active batches during voucher entry are displayed. If you set it to No, expiry batches will not be displayed in the List of Active batches

Show batches with Zero Quantity

It will display the zero quantity batches for the stock item

Skip the Date field during voucher creation

By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No for faster Voucher entry

Show Current Balances of Ledgers

By default, the this option is set to yes, it will display ledger current balance up to last Voucher entry

Show Balances as on Voucher date

By default, the ledger current balance up to last voucher entry date are displayed. If you set it to Yes, it will display the ledger balance up to current voucher entry date

Show final Ledger Balance

 

Consolidate quantity of Stock Items with same rate

 

Show Compound Unit based on Rate

Enable this option to show the compound unit of item based on the unit provided in theRate Per column

Show details of Compound Unit

Enable this option to display details of compound unit in theQuantityfield. IfKgsis typed in RatePerfield, the Quantity field will display as12 Kgs.250 grms

Provide Marks of Container No.

Enable this option to specifyMarksfor every item selected in the invoice

Provide No. of Packages

 

Provide Excise details

 

Modify Tax Rate details for Excise

 

Modify Tax Rate details for Excise Manufacturer

 

    10. Provide Narration, if any, and accept the voucher. As always, you can use Ctrl+A to accept.

Manufacturing Journal

You can keep track of all the goods used to produce the finished goods, co-products, by-products, and scrap during the manufacturing process. It provides a clear view of the items that are consumed or damaged during the process.

Manufacturing Journal Voucher Type

In Manufacturing/Assembling organisations, there are number of components that go into the manufacturing/ assembling of finished Goods. Once, the Bill of materials is created, you can use Manufacturing Journal and specify the quantity of finished goods that are to be manufactured. 

You can create a manufacturing journal and enter details of the components used to produce the finished goods, or the Co-Products/By-Products/Scrap produced during the manufacture of the finished goods, and so on. Refer to Manage Inventory in Manufacturing for more information.

Stock Valuation

TallyPrime allows users to value stock in different methods. Each stock item can be set up to have a different stock valuation method. There are instances where only a particular method of stock valuation is applicable, for example, to assess the replacement value or saleable value of stock.

There are two valuation methods for Inventory Items:

  • Valuation based on Cost of product.
  • Valuation based on Market Price of product.

Costing methods

Stock valuation can be calculated using a number of different Costing methods.

  • At Zero Cost
  • Avg.Cost
  • FIFO
  • FIFO Perpetual
  • Last Purchase Cost
  • LIFO Annual
  • LIFO Perpetual
  • Std. Cost
  • Monthly Avg. Cost

Market Valuation methods

  • At Zero Price
  • Avg. Price
  • Last Sales Price
  • Std. Price

Costing Method at Zero Cost

When Zero Cost valuation is selected, inventory will be valued at zero cost irrespective of the purchasing rate and current balance at hand.

This is extremely useful in sub-contracting environments, where material quantities need to be tracked which are received from the principal, but which do not carry any monetary value with respect to our own books.

Entries are shown below:

Date

VCh Type

Inwards

Outwards

 

 

Quantity

Rate

Value

Quantity

Rate

Value

01/04/20

Purchase

10.00nos

100.00

1000.00

 

 

 

02/04/20

Purchase Bill Pending

2.00nos

175.00

350.00

 

 

 

03/04/20

Purchase

10.00nos

200.00

2000.00

 

 

 

04/04/20

Purchase

25.00nos

225.00

5625.00

 

 

 

05/04/20

Sales

 

 

 

10.00nos

300.00

3000.00

06/04/20

Sales

 

 

 

15.00nos

400.00

6000.00

 

 

47.00nos

183.50

8975.00

25.00nos

360.00

9000.00

In the stock item master, when the costing method is selected as ‘Zero Cost’, closing value will be ‘Zero’.

Average Cost valuation

Average Cost Valuation [Periodic]

Define ‘Average Cost’

Average Cost or Weighted Average Cost = Total Cost [Inward Value] / Total Qty [Inward qty] {Annual}

Flow of Average Cost Calculation in Tally

The example provided below shows the Flow of the Average Cost in Tally.

Entries:

Date

Particulars

Tracking Number

Qty

Rate

Amount

02-04-2020

Receipt Note

No.1

100

120

12000

04-04-2020

Purchase

Against No.1

50

125

6250

05-04-2020

Sales

 

15

150

2250

10-04-2020

Rejection Out

Against No.1

-5

120

-600

11-04-2020

Debit Note

Against No.1

2

120

240

24-04-2020

Purchase

Against No.1

47

135

6345

Let us see how the Average Cost is valuated in TallyPrime for the entries mentioned above:

 

 

Inward

Tracking System

Average Cost

Date

 

Qty

Rate

Amount

No.

Qty

Rate

Amount

Qty

Rate

Amount

02-04-2020

Receipt Note

 

 

 

1

100

120

12000

100

120.00

12000

04-04-2020

Purchase

50

125

6250

1

-50

120

-6000

100

122.50

12250

05-04-2020

Sales

 

 

 

 

 

 

 

100

122.50

12250

10-04-2020

Rejection Out

 

 

 

1

-5

120

-600

95

122.63

11650

24-04-2020

Purchase

47

135

6345

1

-47

120

-5640

95

130.05

12355

 

 

 

Outward

Consumption

Closing (Daily)

Closing (Stock Voucher)

Date

 

Qty

Rate

Amount

Rate

Amount

Qty

Rate

Amount

Qty

Rate

Amount

02-04-2020

Receipt Note

 

 

 

 

 

100

120.00

12,000.00

 

 

 

04-04-2020

Purchase

 

 

 

 

 

100

122.50

12,250.00

50

245.00

12,250.00

05-04-2020

Sales

15

150

2250

122.50

1837.5

85

122.50

10,412.50

35

297.50

10,412.50

10-04-2020

Rejection Out

 

 

 

 

 

80

122.63

9,810.53

35

280.30

9,810.53

11-04-2020

Debit note

 

 

 

 

 

80

122.63

9,810.53

33

297.29

9,810.53

24-04-2020

Purchase

 

 

 

 

 

80

130.05

10,404.21

80

130.05

10,404.21

A detailed explanation for the calculation shown above is as follows:

On 2nd April 2020

A Receipt Note entry was passed with a tracking number No.1. So the Average Cost on 2nd April 2020 is 12000/100 = Rs.120.

In the Stock Voucher details, the Receipt Note show the closing value as Rs. 12000 under the Purchase Bills pending [collection].

In a daily balance, press F6. The Closing Value of stock is displayed as Rs.12000.

On 4th April 2020

The Purchase Entry is passed against Receipt Note no.1. Already the Receipt Note cost is added to the Inward Cost on 2nd April 2020. The difference between the Receipt Note value and Purchase value will be added from the Inward Cost.

The Purchase value is Rs. 6250 and the Receipt Note value is 6,000 so the difference, which is Rs.250 will get added to the Inward Cost.

As on 4th April 2020, the Average Cost = (12000+250) / 100 = 122.50. The Closing Value is Rs.12,250 for 100 nos.

Closing Qty > Opening Quantity + Inward Quantity – Outward Quantity

Closing Rate > Closing Value / Closing Qty

Closing Value > System determined value as per valuation method selected in the Item Master

On purchasing a line item, the closing rate is shown as Rs.245 [12250 / 50 ] since the closing value on that day is Rs.12,250 and the closing quantity as per Stock Voucher is 50. This is because the Receipt Note will show it under the collection of Purchase Bills pending.

In the Daily breakup, the difference of the Receipt Note and Purchase is added to the Closing Value.

On 5th April 2020

Sales made for 15 nos. of Quantity.

The Cost of Sale is determined based on the Average Cost on 5th April 2020. The Average Cost continues to be Rs.122.50 since there is no change in the Inward Cost. So the consumption or cost of sale = 15 nos. x Rs.122.50 = 1837.50

Likewise the Closing Value of an item = [100-15] x [122.50] = 85 x 122.50 = 10412.50

Transactional Consumption –> System determined value based on valuation method

Total Consumption –> Opening Value + Inward Value – Closing Value

Transactional Gross Profit –> Outward Value – Transactional Consumption value

Total Gross Profit –> Total Outward Value – Total Consumption value

On 10th April 2020

The Rejection Out entry was passed against Tracking number 1 for 5 Nos.

Since the item is sent out of the company, the valuation gets affected. So the Rejection Out value automatically gets reduced from the Inward Cost.

Average Cost = [12250 – 600] / [100-5] = 11650/95 = Rs.122.63

Closing Quantity = 85 – 5 = 80 Nos.

Closing Value = 80 Nos. x Rs.122.63 = 9810.53

On 11th April 2020

The Debit Note entry is passed against the Rejection Out Tracking number 1. Already a Rejection Out cost is included in the Inward Cost and only the difference of the Debit Note Cost and Rejection Out cost gets included in the Inward Cost.

The difference between a Debit Note and Rejection out = [2 x 240] – [2 x 240] = Zero.

The Average Cost continues to be Rs.122.63 since there is no change in the Inward Cost.

Closing value = 80 x 122.63 = 9810.53

On 24th April 2020

A Purchase Note is raised against a balance Receipt Note tracking Number 1. Since the Receipt Note Cost is already included in the Inward Cost, only the difference between a Receipt Note Cost and Purchase Cost can be included in the Inward Cost.

The difference between a Purchase and Receipt Note = [47 x 135] – [47 x 120] = Rs. 705 is added to the Inward Cost.

Total Inward Cost = Rs.11650+ 705 = 12355

Total Inward Qty = 95

Average Cost = 12355 / 95 = 130.05

Closing Quantity = 80

Closing Value = 80 x 130.05 = 10,404.21

Rs.955 is the difference between the Purchase and Receipt Note cost. [250+705=955]

First In First Out – FIFO

First In First Out is the traditional method of valuation.

The value of the current closing stock is treated as a collection of the ‘residual’ stock working back from the last purchase, until the Financial Year opening stock. It is assumed that the goods issued or sold currently are those which represent the earliest purchased amongst the goods sold in inventory. This would mean that the goods which remain in stock after the sales/issues are those which represent the most recent purchases.

Entries are shown below:

Date

Vch Type

Location

Batch

Inwards

Outwards

 

 

 

 

Quantity

Rate

Value

Quantity

Rate

Value

01/04/20

Opening Bal

Chennai Location

B2

6.00 nos

95.00

600.00

 

 

 

01/04/20

Opening Bal

Main Location

B1

10.00 nos

100.00

1000.00

 

 

 

01/04/20

Purchase

Main Location

B1

10.00 nos

100.00

1000.00

 

 

 

02/04/20

Purchase Bills Pending

Chennai Location

B2

2.00 nos

175.00

350.00

 

 

 

02/04/20

Sales

Main Location

B1

 

 

 

5.00 nos

400.00

2000.00

02/04/20

Purchase

Chennai Location

B2

10.00 nos

200.00

2000.00

 

 

 

 

 

 

 

32.00 nos

122.81

3930.00

5.00 nos

400.00

2000.00

FIFO method will consider the ‘First In First Out’. When ‘Location’ and ‘Batches’ exists, it will walk through the ‘Location’ and ‘Batches’.

Let us now analyze how the closing value has arrived for the above entries.

Opening Balance : Chennai location=> B2=6.00 nos Rs. 95.00/-
Main Location=> B1=4.00 nos, Rs. 90.00/-

Purchase :Main Location=> B1=10.00nosRs.100.00/-

Hence, On 1st April 2020:

4 nos (Opening Bal =>Main location=> B1) x 90 =360

6 nos (Purchase=> Chennai Location => B2) x 95=570

10 nos (Purchase=> Main location => B1) x 100 =1000
1930/-

On 2nd April 2020:

Receipt Note was raised for 2.00 nos and sales (Main Location=> B1) was raised for 5 nos.
Hence Closing Quantity = 17 nos

Let see how Closing Value is getting calculated:

A sale was done from ‘Main Location’- ‘B1’ Batch. and Receipt Note was raised from ‘Chennai Location’- ‘B2’ location.

Let us arrive at the cost of 2.00 nos of the ‘Receipt Note’.

Closing Value of ‘Chennai Location’ as on 02.04.2020 is Rs. 95/- i.e., Opening Balance for Chennai Location is570/6 = 95/- (Total Inward Quantity/Total Inward Value) . After this there are no transactions for ‘Chennai Location’ – B2. Hence closing rate is Rs. 95/-

Receipt Note 2 nos x 95 = 190
Purchase (10 nos – 1 nos (for sales))9 nos x 100=900
Opening bal ( Chennai Location) 6 nos x 95= 570
1660/-

On 3rd April 2020:

Closing Quantity = 27 nos

Let us see how Closing Value is getting calculated:

Purchase has been raised from ‘Chennai Location’ – ‘B2’ Batch. As on 3rd April 2020, Closing value for ‘Chennai Location’–> B2 batch is Rs. 2861.25/-
Remaining from ‘Main Location’–> B1 batch is Rs.900.00/-
Rs. 3791.25/-

FIFO Perpetual

Stock Items purchased FIRST are sold FIRST across the Financial Year (i.e. First LOT could be from any previous Financial Year entry).

FIFO Perpetual

FIFO Perpetual is one of the stock valuation methods used for calculating closing balance of inventory in TallyPrime. The inventory reports use valuation methods in case of intra-year reporting.

In this intra-year reporting, when books are closed at the end of a financial year, closing balance is carried forward to next financial year. Thus inventory reports use the values from closing balance for reporting in the new financial year.

FIFO Perpetual valuation method helps in carrying forward balances based on actual purchase costs and it displays the cost/consumption values in inventory reports of the new financial year accordingly.

For example

Scenario 1: Valuation method – FIFO

The closing balance for the stock item at the time of closing of books:

 

Transaction

 

 

Item

 

 

Quantity

 

 

Rate

 

 

Value

 

 

Purchase

 

 

00001

 

 

100

 

 

100

 

 

10000

 

 

Purchase

 

 

00001

 

 

100

 

 

120

 

 

12000

 

Item: 00001

Quantity: 200

Value: 22000

When stock item 00001 is used in the new financial year, the inventory reports will display the cost /consumption value of these items at the rate -100 (Rate= 22000 (Value)/200 (Quantity).

Scenario 2: Valuation Method – FIFO Perpetual

 

Transaction

 

 

Item

 

 

Quantity

 

 

Rate

 

 

Value

 

 

Purchase

 

 

00002

 

 

100

 

 

100

 

 

10000

 

 

Purchase

 

 

00002

 

 

100

 

 

120

 

 

12000

 

The closing balance for the stock item at the time of closing of books:

Item: 00002

Quantity: 200

Value: 22000

When stock item 00002 is used in the next financial year, the inventory reports will display the cost/consumption value at the rate – 100 for the first batch of stock and 120 for the second batch i.e. based on the actual purchase price.

Last Purchase Cost costing method

In the Last Purchase Cost costing method, the closing value of the stock item is calculated based on the rate of the last purchase

Consider an example below:

Date

VCh Type

Inwards

Outwards

 

 

Quantity

Rate

Value

Quantity

Rate

Value

01/04/21

Purchase

10.00nos

100.00

1000.00

 

 

 

02/04/21

Purchase

12.00nos

150.00

1800.00

 

 

 

03/04/21

Purchase

10.00nos

200.00

2000.00

 

 

 

04/04/21

Purchase

25.00nos

225.00

5625.00

 

 

 

05/04/21

Sales

 

 

 

10.00nos

300.00

3000.00

06/04/21

Sales

 

 

 

15.00nos

400.00

6000.00

 

 

59

183.47

10825.00

25.00nos

360.00

9000.00

As on 1st April 2021 = closing rate will be taken Rs. 100/-.

As on 4th April 2021, a purchase is made for 25 numbers at Rs.225/-, hence the closing rate will be taken as Rs.225.

Note: In the absence of a purchase transaction, the closing value of the stock item will be calculated as the average rate of all inward transactions such as stock journal, material in, material out (with destination location details), Debit note and Rejections out.

The closing value of stock item is calculated irrespective of locations and batches.

Last In First Out (LIFO) costing method

LIFO is one of the stock valuation methods used for calculating closing balance of inventory in TallyPrime. It is further classified into two methods, LIFO annual and LIFO perpetual, which are detailed in this topic.

LIFO ANNUAL

The stock items ‘last’ lot ‘input’ becomes the ‘first’ to get consumed, while the earlier/earliest lots remain unused under the current Financial Year. LIFO Annual restricts the LIFO behavior to the present Financial Year and treats the Opening Stock as the ‘First Lot’.

LIFO PERPETUAL

The stock items purchased in Last LOT are sold FIRST.In Perpetual LIFO, the very first input into the system, even if it was 10 years ago (!) gets treated as the ‘First Lot’.

When these entries are passed in TallyPrime, closing value will appear as below:

As on 1st April 2020:
Purchase of 10.00 nos for Rs.100/- = 1000/- (Main Location= B1 – Batch)

As on 2nd April 2020:
Purchase of 10.00 nos for Rs. 150/- = 1500/- , hence the ‘Closing Value’ will be 1000 + 1500 = 2500/- (Main Location= B1- Batch)

As on 3nd April 2020:
Sale has been done from ‘Main Location-> B1- Batch’ for 5 nos. Now Last Purchase is First Out i.e., purchase as on 2nd April is the last purchase.

Closing Value will be calculated as below:

Remaining stock item from 2nd April purchase is5.00 nos x 150= 750
Stock item from 1st April purchase is10.00 nos x 100 = 1000
1750/-

As on 4th April 2020:
Purchase of 10.00 nos for Rs. 200/- = 2000/- ( Chennai Location-> B2- Batch) , hence the ‘Closing Value’ will be:

Purchase as on 4th April =2000 (10 x 200)
Purchase as on 2nd April =750 (5 x 150)
Purchase as on 1st April= 1000 (10 x 100)
3750/-

As on 5th April 2020:
Sale has been done from ‘Chennai Location- B2- Batch’ for 5 nos. Now Last Purchase is First Out i.e., purchase as on 4th is the last purchase.

Closing Value will be calculated as below:

Remaining stock item from 4th April purchase is5.00 nos x 200=1000
Stock item from 2nd April purchase is5.00 nos x150 =750
Stock item from 1st April purchase is 10.00 nos x 100 =1000
2750/-

Standard Cost costing method

Standard Cost can also be called as User Specified Rate. Once when Std Cost is specified (Std rate to be specified in the Inventory Master screen), this rate is applicable for the current date irrespective of the price/cost of purchase/input.

This type of valuation is used where the daily variances of purchase are not expected to effect the value inventory. For example: Gold.

When Standard Cost is chosen, the Batches and Locations become irrelevant, and the entire inventory for this item is valued at Std rate.

In the stock item master screen, set Yes to Allow Std. Rates for Stock Items.

In the stock item master screen, set Set Standard Rates to Yes.

Press F12 (Configure) > set Provide Standard Selling and Buying Rates as Yes.

If you do not see the option:

  • Set Show more configurations to Yes.
  • Set Show all configurations to Yes.

Give the Std rate for the stock item from the date of applicable, this rate will be considered for the stock valuation.

Under Costing Method, select Std Cost.

Once when Std rates are defined, while raising the purchase invoice (when cost price is defined) or sales invoice (when selling price is defined) rates will be automatically picked up.

In our above example as on 3rd April 2020, Std rate is defined Rs. 500/-. Let us raise the purchase invoice on 3rd April 2020.

In case, if the data already exists, and from certain date if user would like to change the cost price and selling, user can define the same in Std rate. Let us see how the std rates will get affected for the given data.

 

Date

VCh Type

Location

Batch

Inwards

Outwards

 

 

 

 

Quantity

Rate

Value

Quantity

Rate

Value

01/04/09

Purchase

Main Location

B1

10.00nos

100.00

1000.00

 

 

 

02/04/09

Purchase

Main Location

B1

20.00nos

150.00

3000.00

 

 

 

03/04/09

Purchase

Chennai Location

B2

10.00nos

200.00

2000.00

 

 

 

04/04/09

Purchase

Chennai Location

B2

25.00nos

225.00

5625.00

 

 

 

05/04/09

Sales

Chennai Location

B2

 

 

 

10.00nos

300.00

3000.00

06/04/09

Sales

Main Location

B1

 

 

 

15.00nos

400.00

6000.00

 

 

 

 

65.00nos

178.85

11625.00

25.00nos

360.00

9000.00


Std rate has been defined as on 3rd April 2020, Rs.500/- is applicable from 3rd April.If there are any vouchers exists before the date of std rate, it will take the Last Purchase Cost.

In our above example, as on 2nd April 2020, closing value is Rs. 4500/-. i.e., 30 nos x 150 (last purchase cost) = 4500/-. Thereafter closing value will be calculated based on the std rate specified.

In case if the Purchase Bills Pending exists, it will avg the closing value. Vouchers are passed as below:

As on 1st April 2020:
Receipt Note has been raised for 10 nos Rs. 3000/- and purchase invoice was raised for 2 nos Rs. 600/, hence 3000+600 = 3600, 2 nos / 3600 = 1800/

As on 3rd April 2020:
Std Rate: Rs.500/- is applicable from 3rd Apr 2020.
Closing Quantity = 14 nos
Closing value= 14 x 500 = 7000/-

Monthly Average Method of stock valuation

In the monthly average costing method, the closing value of each month will be treated as opening for the next month.

In the above illustration, the rate (highlighted) is derived as below:

Formula:

Closing rate= Total inward value/total inward quantity.

April month: 47500/200= 237.50

Consumption is derived as below for April month:

Outward quantity * closing rate as on that date.

Example: On 4-4-2020: 50*100= 5000 (consumption)

Gross profit = Value- Consumption

i.e 125000-5000= 120000

Gross profit percentage = Gross profit/value*100

120000/125000*100= 96.00%.

The closing rate is derived as below for May:

Formula:

Closing rate= Total inward value/total inward quantity.

55750/290= 192.2414 or 192.24

55750 comprises of last month’s closing value (treated as opening) + this month inward.

55750= 332520+22500

Where rate = 55750/290 = 192.24

Consumption is derived as below for May:

Outward quantity * closing rate as on that date.

Example: 11-5-2020 : 90*192.2414= 17301.726 or 17301.72 (consumption)

Gross profit = Value- Consumption

243000-17301.72=225698.28

Gross profit percentage = Gross profit/value*100

225698.28/243000*100=92.88%.

When you see the report as a whole, the same will be shown as below:

The total Consumption is derived from the below formula:

Opening Value + Inward Value – Closing Value

i.e. 70000-38448.27= 31551.73.

Gross profit = Value-Consumption

394000-31551.73= 362448.27

Voucher Types

TallyPrime uses a voucher type for each transaction type. You can create voucher types that cater to your needs. Apart from the default voucher types that Tally provides, you can create voucher types to serve your custom needs.

Voucher Numbering

Refer to Define Voucher Numbering for more information.

Voucher Class for Voucher Types

Voucher classes are templates for voucher types, used Voucher class aids in faster data entry, appropriate allocation of stock item to ledgers, helps eliminate mistakes of wrong ledger selection, and invoice level rounding. You cannot use a voucher class in voucher alteration.

Stock Journal voucher Class

Stock Journal classes allow you to handle transfers from one location to another, for companies having Multi-Location Inventory and at least two location. Once the class is selected, you will need to specify the Destination and provide the list of items to be transferred. Through this class all items/batches thus selected will be exactly mirrored to the destination, including Batch Number, Rate and Value.

You can either alter the existing Stock Journal or create a new voucher type based on the requirements.

  1. Gateway of Tally > Alter > type or select Voucher Types > type or select Stock Journal.
    Alternatively, press Alt+G (Go To) > Alter Master > type or select Voucher Types > type or select Stock Journal.
  2. Enter a name in the field Name of Class. (For example, Transfer).

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options.
  3. The Class: Transfer screen is displayed. To create a class for inter – location transfer, set the option Use Class for Inter -Location Transfer to Yes.
  4. Accept the sales voucher screen. As always, you can press Ctrl+A to save.
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