Topic 2:Inventory Configuration (F12)in Tally ERP 9

Go to Gateway of Tally > F12: Configure > Accts/Inventory Info.

Allow Advanced entries in Masters

Set this option to Yes to specify the behaviour of the Stock Item, in the Stock Item Master. For
further details, please refer
the section Stock Items.

Use Part Numbers for Stock Items

Set this option to Yes, to enter the Part Numbers of the Stock Item.

Use Description for Stock Items

Set this option to Yes to enter any Description of the Stock Item in the Stock Item Master.

Use Remarks for Stock Items

Set this option to Yes to enter your remarks or comments about the stock Item.

Use Alternate Units for Stock Items

Set this option to Yes to define an Alternate Unit for the Stock Item.

Allow Std. Rates for Stock Items

Set this option to Yes, to specify the Standard Purchase Cost and Standard Sales Price of the
Stock Item.

Specify Default Ledger Allocation for Invoicing

Set this option to Yes, to Set or Modify Default Ledgers for Invoicing for the Stock Item.

This allows you to allocate default Sales/Purchase Ledgers which will be credited when a Stock Item is
invoiced.

Allow Component list details (Bill of Materials)

Set this option to Yes, to define the Components (BOM) for the Stock Item. For further details,
refer to the section Bill of Material.
Use Addresses for Godowns

Set this option to Yes, to enter the godown address in the Godown Master

Topic 3: Creation of stock group

Creating stock group in Tally ERP9 help you in grouping of products and a store
keeper can arrange and  locate stock item easily with the help of grouping. In Layman’s
language, Stock Group in tally erp 9 is the classification or grouping  of similar nature of
Products which will help in managing products like ,storing & replenishing to it’s optimum
level. The store keeper can assign relative priority to the right product groups. Tally will
generate the report for the stock group,like group statement, item movement based of
groups etc in-order to help us in implementing the most apt inventory management system.
 What is a stock group?
Stock groups are used to classifying products.It helps to enumerate the stock from a
colossal amount of products  by viewing the report of a particular group.Let’s consider a
simple example. An  electronic goods dealer is classifies the products as follows.

They group items based on Product category such as Electronics Goods, Grocery,Clothing
etc. Again the sub division of products are based on its brands.See the below image for more
clarity.

Main group= Television

Sub Group= Sony,Lg,Samsung,Sharp etc.

How to create a stock group in tally erp 9?

Make sure that the company is in Accounts with inventory Mode.If it is not, you can
enable it from F11 Features>F2 Accounting Features>
Disable option ‘Maintain Accounts only‘. or keep the option No
Maintain accounts only: No

There are two modes of stock group creation, They are Single Mode andMultiple Mode.
1. Single stock Group: Only one stock group can be created using this option under a
main group.
2. Multiple Stock groups: This option help us to create several groups under a single
main group and ever under various main group at a time.
Single stock group Creation in tally erp 9
To create a group in single stock group mode,
Go to Gateway of Tally>>Inventory info>>Stock Group
Press enter and select Create under single stock group

Let’s create the first group Television

Name: Television
Under: Primary,(Primary meaning the prime group or the first level group)
Can quantities of item be added? : By enabling this option you can calculate the sum
total of all item quantity. For example you can find out the total number of TV’s grouped
under “Television” group Which includes the products under its sub groups. The unit of
measure must be same for all items.

Press enter and save the screen. We can call Television as primary group. In this way you
can create so many groups individually.
Now we want some sub groups under Television group like Sony, LG, Samsung, sharp etc.
Multiple Stock Groups Creation in tally erp9
To overcome the difficulty of creating groups individually, We have the multiple stock group
creation option using which, we can create numerous groups in a single screen.

Let’s create the secondary level groups  or sub groups using multiple stock group creation,
to do this

Go to Gateway of Tally>>Inventory Info>>Stock Group

Select create under Multiple Stock Groups
And fill as following

Under Group:  Television

Name of Stock Group:  Sony
Under: Under field filled automatically with Television, This field would not be active as
we have already selected the under group at the top. It will be active only when we select  all
item there.
Items are addable: If you want to add the units of the stock items
Press enter to move on to next line, where you can type another stock group, enter all four
stock groups .The final screen will look like this.

Press enter and save the screen, so the multiple stock group creation is completed.

Create Multiple stock groups under various main groups.

You can create various stock groups under various main groups.To do this Select all
item in Under Group at the top. The field ‘Under’ will be active in this case and you can
select the main group under which new groups are placed for every single groups.See below
image.

You can choose the main group under which Sansui stock group comes under.  The next
step is editing viewing and deleting of stock group that we will learn in the next lesson.

Displaying a Stock Group

You can display the existing Stock Group in Single mode and multiple mode, since it is only
display Tally.ERP 9 does not allow you to alter any information in display mode.

To display Single Stock Group

1.    Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single
Stock Group)

2.    Select the Stock Group whose particulars you want to display from the List of Groups.
The Stock Group Display screen is displayed as shown.

Buttons specific to stock group Display mode

Short cut
Buttons Description & Use
Keys

Allows you to Display a Stock

C: Category CTRL+C
Category.

I: Items CTRL+I Allows you to Display a Stock Item.

Allows you to Display a Unit of

U: Units CTRL+U
Measure.
 O: Godown CTRL+O Allows you to Display a Godown.

V: Vch Allows you to Display a Voucher

CTRL+V
Types Types

Note: Category and Godown buttons are visible only if you opted for the same in F11:
Features.

To display Multiple Stock Groups

1.    Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple
Stock Groups)

2.    Select the Stock Group from the List of Groups.

If you select All Items from the List of Groups, all the Groups and sub Groups are
displayed.

If you select Grade One from List of Groups, all the sub Groups related to Grade
One will be displayed.

Buttons specific to Multi stock group Display mode:

Buttons Shortcut  Description & Use

 Keys

F4: Allows you to select parent [Stock Group] from List of Group.

CTRL+F4
Parent Selected Stock Group will get displayed.

C:Categor Allows you to select Category from List of Categories.

CTRL+C
y Selected Stock Category will get displayed.

 Allows you to select Stock Group from List of Groups.

I: Items CTRL+I
Selected Stock Group will display related stock items.

O: Allows you to select Godowns from List of Godowns. Select

CTRL+O
Godown Godowns will get displayed.

 Note: Category and Godown buttons are visible only if you have opted for the same in F11:
Features.

Altering a Stock Group in Tally.ERP 9
This option allows you to view the existing Stock Group in edit mode, here you are allowed to change the various
information.

To alter a Stock Group,

Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Single Stock Group)

Select the Stock Group from the List of Groups. The Stock Group Alteration screen is displayed as
shown.

[Img-10]

Make the necessary changes and click Yes to accept or press Ctrl+A to Save.

Deletion is possible only in the mode,. For deleting the Stock Group, Press ALT+D.

Note :  Yo u ca nnot   del et e   a   st oc k group , i f it is us ed b y a ny sub g roups or sto ck item s. I n

orde r to delete the Sto ck Gr oup, fi rs t delete the rele va nt s ub groups a nd Sto ck item s.

Buttons specific to stock group Alter mode:

Short cut Keys Description and Keys

Buttons
 C: Category CTRL+C Allows you to Alter a Stock Category.
I: Items CTRL+I Allows you to Alter a Stock Item.
U: Units CTRL+U Allows you to Alter a Unit of Measure.
O: Godown CTRL+O Allows you to Alter a Godown.
V: Vch Types CTRL+V Allows you to Alter a Voucher Types
 

Note :  C at egor y   and   Godown   buttons are vi sible onl y if y ou hav e opted fo r t he s am e
in   F1 1: Fea ture s .

Altering Multiple Stock Groups

Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Multiple Stock Groups)

Select the Stock Group from the List of Groups. The Multi Stock Group Alteration screen is displayed as
shown.

[Img-11]

Make the necessary changes and click Yes to accept or Press CTRL+A to save.

Note :  Yo u ca nnot delete a   S tock G roup   f ro m multipl e mode .

Topic 4: Creating Stock Item

Stock Items
Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and
is the lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP
9 for each inventory item that you want to account for.

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

 Creating a Stock Item
Stock items are goods that you manufacture or trade (sell and purchase). It is the primary
inventory entity. Stock Items in the Inventory transactions are similar to ledgers being used in
accounting transactions.
 Two Modes of Stock Item Creation:
1.      Normal Mode

2.      Advance Configuration Mode.

CREATION OF STOCK ITEM IN NORMAL MODE:

To create a Stock Item,

Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under Single Stock Item)

Stock Item creation is displayed as shown

A brief description of each field in the Stock Item Creation screen follows:

Name

Specify the name of the Stock Item.

Alias
 Specify the Alias name of Stock Item (if required).

Under

This field will show the List of Groups. Here you can select the Stock Group to which the Stock
Item belongs. By default, Primary Stock Group appears in this field.

Note: You can create a new stock Group by pressing ALT+C at this field.

Units

This field will show the Unit List. Here you can select the Unit of measurement applicable for
the stock item. By default, Not Applicable appears in this field.

Note: You can create a new Unit by pressing ALT+C at this field.

Rate of duty

Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of
excise duty or if duty is based on item rate. During Invoicing, whenever you select a Stock Item,
the Rate of duty entered here is displayed in the Invoice creation screen.

Note: In F11 Inventory features, if  Allow Invoicing is set to No then Rate of Duty field will not be
visible.

Tariff Classification

Specify the Tariff Classification for the item, if applicable. Tariff Classification can be created or
used when Excise features is activated for the company.

Opening Balance

Specify the details of Opening Stock, if any, for the Stock Item as on the date of Beginning of
Books.

1.      In the Quantity Field, specify the stock item Quantity, say 5 Nos.

2.      In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece.

3.      In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity and
Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field accordingly.

Note: If Unit field is Not Applicable then the cursor will move from Quantity and Rate Field.

Creating a Stock item in Advance Mode

Advance mode means enabling advance configuration and Features for stock item master
inF12:Configure and F11:Features.

Shown below are the advance configuration parameters  for stock item master
under F12:Configure (Master Configuration) (As per below image):
Shown below are the advance Features for stock items in F11:Features:

Note: You can configure the entire setup according to your requirements. According to

the configuration in F12 and F11, stock item master fields will get added and removed.

Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)

A brief description of each additional field in Stock Item Creation screen is given below.

Part No.
This Part number field gets enabled only after enabling Use Part Number for stock items in
Inventory Master Configuration. This field is used to enter the Vendors catalogue number. You
can also optionally print it in reports/invoices.

Description
The Description field gets enabled only after enabling Use Description for Stock Items in
Inventory Master Configuration. This field is used to enter the description of the Stock Item as it
is required to be printed in Quotations, Delivery Challan/Invoice.
Remarks
This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory
Master configuration. This field is used to enter Remarks for the Stock Item (for internal use
only). Any additional details about the Item can be entered here.

Set/Modify Default Ledgers for Invoicing?

This option gets enabled only after enabling Specify Default Ledger Allocation for Invoicing in
Inventory Master Configuration. Once you enable this option, a  screen will be displayed for
selecting the default ledger allocation for sales and purchase for the stock item.

Note: This option is useful only in case of Invoice entry through Voucher Class.

 
Category
This Category field gets enabled only after enabling Maintain Stock Categories in Inventory
Master Features. This field will show the List of Categories. Here you can select the Stock
Category under which the stock Item belongs. By default, Not Applicable is displayed in this
field.

Note: You can create a new stock category by pressing ALT+C at this field.

Alternate Units
Alternative Units are individual units similar to simple units, which can be used instead of
another simple unit during Invoicing / voucher entry and are also useful in displaying the stock
reports alternatively in another simple unit. This is particularly useful when you need to handle
different units at different times.

This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in
Inventory Master Configuration.

 
Example:
Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of
wheat flour can be measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple
units, which can be alternatively used.
Maintain in Batches?
This option gets enabled only after enabling Maintain Batch wise Details in Inventory Master
Features. If you want to maintain the batch information of Stock Items, set the option Maintain
in Batches to Yes.

Track Date of Mfg?

This option is enabled only when Maintain in Batches? is set to Yes. If you want to specify the
manufacturing date for the item, set Track Date of Mfg. to Yes.

Use Expiry Dates

This option gets enabled only after enabling Set Expiry Dates for Batches under Maintain Batch
Wise Details option in Inventory Features. If you want to specify the expiry date of the item,
set Use expiry dates to Yes. This option is useful for stock items like medicines, Food items, etc.

Set Component BOM

This option gets enabled only after enabling Allow Component List Details (Bills of Material) in
Inventory Master Configuration. Refer to Bills of Material for more details.

Set Standard Rates

This option gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory
Master Configuration. This option helps you specify standard purchase rate and standard sales
rates for the item.  

The standards are effective from the specified dates and they continue to be used at these
rates until the next date, where the standard rate changes.

Note: Standard Rates can also be used for valuation of closing stock.

Behaviour Group
Once you enable Allow Advanced Entries in Masters Behaviour Group option will be enabled.

Options available under Behaviour Group are:

Costing Method
This field will display the List of Costing Method for valuating the Stock Item.

 Depending upon the stock item, you can select the costing method for valuating the Stock
item.

A Brief description about each Costing Method:

At Zero Cost:
Cost of an item is considered as zero. For example, for defective items that have no commercial
value.

Avg. Cost:
Periodic system:
This is also known as Weighted Average Cost. The weighted average cost for the whole year is
computed as below: 

Monthly system:
In monthly average cost, weighted average cost is determined on a monthly basis instead of
annual.

FIFO (First-in, First-Out):

Periodic System

Under FIFO Periodic System, it is assumed that items purchased first are sold first under the
current financial year (i.e., first lot from the opening stock of current year).

Perpetual System

Under FIFO Perpetual system, it is assumed that items purchased first are sold first across
the financial year (i.e., first lot may be from previous year entry).

So cost of goods sold is based upon the cost of material received first in the period, while the
cost of inventory is based upon the cost of material received last in the period.
Last Purchase cost
Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based
upon the Last purchase rate.

LIFO (Last-in, First-Out)

Periodic system

Under LIFO, it is assumed that items purchased last are sold first under the current financial
year (i.e., first lot from the opening stock of current year)

Perpetual System

Under LIFO Perpetual system, it is assumed that items purchased last are sold first across
the financial year (i.e., first lot may be from previous year entry).

So cost of goods sold is based upon the cost of materials received last in the period, while the
cost of inventory is based upon the cost of material received first in the period.

Standard Cost
Standard Cost is Standard Rates specified in the Inventory master.

Cost of goods sold and Cost of inventory is based upon the Standard Rates.

Market Valuation Method

By using Market Valuation Method, you can determine the realizable worth of an Item.

Unrealized Profit of an Item = Closing value as per Costing Method – Closing value as per
Market valuation method.

Select the appropriate method applicable for the Item from the Valuation Methods List

At Zero Price
Realisable price of an item is considered as zero.

Example: For defective items that have no realisable value in the market.

Average Price
Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for
the financial year.

Last Sale Price
Item is valued at Last Sale Price.
Standard Price
User specified rate applicable for the current date specified in Item master under Standard
Rateis taken as the realizable rate.

Ignore Diff. due to Physical Counting?

In Tally.ERP 9, you can record the physical stock as counted, using a physical stock voucher. If
you wish to ignore the difference and continue with the stock as per books, set this option
to Yes.

Ignore Negative Balances?

If you set this to Yes, Tally.ERP 9 ignores the item in the stock reports, in case it has a negative
balance.

Treat all Sales as New Manufacture?

If you set this to Yes, whenever a sales entry is made, Tally.ERP 9 automatically updates the
quantity and value in inward by treating the same entry as a New manufacture or purchase.

Treat all Purchases as Consumed?

If you set this to Yes, then, whenever a purchase entry is made, Tally.ERP 9 automatically
updates the quantity and value in outward by treating the same entry as consumed.

Treat all Rejections inward as Scrap?

If you set this to Yes, then, whenever a rejection inward entry has been made [without tracking
number], Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this
case, you need not pass the credit note for reducing the value against rejection inward.

This is used for defective items returned by the customer.

Allow use of expired Batches?

This option will get enabled once you enable the Use expiry dates under Maintain in
Batchesoption.

If you set this to Yes, during selection of batches in voucher entry, expiry batches also get
included in the List of Active Batch.

Displaying a Stock Item 

You can display the existing Single Stock Item master and Multiple Stock Item masters, since it
is only display you are not allowed to alter any information in display mode.

To display a Single Stock Item,

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item)
Select the Stock Item you want to display from the List of Items. The Stock Item Display
screen is displayed as shown.

DISPLAYING A MULTIPLE STOCK ITEM

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item)
Select a Stock Group or All Items from List of Groups to display the Stock Item under the
selected group or All Items.

The Multi Stock Item display screen is displayed as shown.

Altering a Stock Item

This option allows you to view the existing single Stock Item master and Multiple Stock Item
masters in edit mode, here you are allowed to change the various information.

In the Alteration mode, you can change the item master settings.

If a transaction is entered for that item, it is not possible to alter the units and delete the stock
item.

To Alter a Single Stock Item,

Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Single Stock Item)

Select the Stock Item you want to alter from the List of Items. The Stock Item Alteration
screen is displayed as shown.
ALTERING A MULTIPLE STOCK ITEM
Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to alter the Stock Item under the selected
group or All Items.

The Multi Stock Item Alteration screen is displayed as shown.

Note: In the Multi Stock Item Alteration screen , you can create an Item by specifying item name
after the last item, but you cannot delete an item.

Topic 5: How to create, edit, delete stock category in tally erp 9?

Stock Category gives a parallel dimension for categorizing or arranging stock items apart
from stock group. For example, For a grocery trader is dividing things by adopting the
following strategy.He groups the commodity with Brands and categorize with weight as
follows.
 Sr
No Stock Item  Stock Group Stock Category

1 Basmathi Rice Kohinoor Brand 25 Kg bag

2 Sushi Rice Indus valley Brand 50 Kg bag

3 Red Rice Classic Brand 75 Kg bag

4 Rissotto Rice Amira Brand 50 Kg bag

5 Par Boiled Rice India Gate Brand 25 Kg bag

The stock category will give you a third dimension report for the Inventory. That  is the first
level report is the report of stock item it self. Second level report is the stock group level
report and the stock category report is also a second level report which is parallel to the
group level report.
How to activate stock categories in Tally ERP 9
To be able use this option in tally erp 9, You have to activate it, For activation of stock
categories go to
F11 Features > F2 Inventory Features
Activate the option Maintain Stock categories

Press enter key and accept and save the screen.

How to create stock categories- Single mode.

To create stock category, Go to

Gateway of Tally>Inventory Info>Stock Categories>Create

 Enter the stock category name. In our example let’s create 25 Kg bag.
 Under: Primary ,When you create a category under primary, That becomes the first
level category.
Save the screen by pressing Ctrl+A.

Create stock categories under Multiple stock categories.

Go to

Gateway of Tally>Inventory Info>Stock Categories>Create (Under Multiple

Stock Categories)

How to edit stock category

To edit a stock category, go to.

Gateway of Tally>Inventory Info>Stock Categories>Alter.

Select the category you want to edit,Make necessary changes required and save.

How to delete a stock category

To delete a stock category, go to

Gateway of Tally>Inventory Info>Stock Categories>Alter.

Select the stock category you want to delete.

Press Alt+D or click on delete button on the bottom of the screen. Accept the confirmation
for deletion.
How to use stock category in tally erp 9
If you want to use,the stock category, you have to add the proper category with each and
every product. Let’s see how.
Let’s create the First stock item in the above example.
Gateway of Tally> Inventory Info>Stock items>Create

Select the apt category for stock item as shown in the image. and save. create all stock item
in the example.

Now you can start all items to be entered in the sales voucher or in purchase voucher.
Category-wise report in tally erp 9
The following category-wise reports are available in tally erp 9.

Movement analysis based on category

Gateway of Tally> Display > Inventory Books > Movement analysis > Category
analysis.
By selecting Primary, you can view all stock items categorized under primary group. You
can view the individual item report by selecting individual items.
Stock category summary report
Category-wise stock group report is available at

Gateway of Tally> Display >Statements of  Inventory>Categories.

Topic 6: Unit of Measure

In every business dealing with stock item it is very important to keep the accurate stock of
goods. Goods are measured using Units.Every inventory items are sold or purchased in
terms of Unit. The units which are used to measure items are Numbers, Kilograms,
Milligrams, Litters, Milliliters,Pieces, Boxes, bottles etc.  While entering an Item invoice  we
must have a unit to multiply with the rates to get the total invoice amount.

We can classify the unit of measures based on its nature into two.

1. Simple Unit
2. Compound Unit
It is important that you should activate inventory along with accounts in Tally ERP 9.To
activate inventory in tally erp 9 go to.

F11 Features>F1 Accounts features

Make sure that the option Maintain Accounts only set to No.

Save to features screen by pressing Ctrl+A

How to create Simple Unit

Examples of Simple units are Numbers, Litters, Pieces, Boxes, bottles etc
Let’s create a simple unit in tally

Go to

Gateway of Tally>>Inventory info>>Unit of Measure>>Create

Or

You can access unit creation screen from the gateway of Tally Press I U C hotkey from your
keyword .This means that Press I, Then U, Then Cfrom keyboard to access Unit Creation
Screen
In the unit creation screen you can see the following field

 Type: By default it is Simple

 Symbol: This is the Formal symbol of the units creating, the symbol of Liter
Is L ,The symbol of Number is No, Piece is PCS and so on.
 Formal Name: In the case  of symbol L The Formal Name of L is Liter, No formal
name number.
 Number of Decimal Places:  Suppose you are selling milk 1.325Liters, in this
case the decimal places are three digits.One set decimal places, you can increase the
decimal places to a higher number but cannot decrease to a lower number decimal
places.
Here we are creating a simple unit of measure Liter, in three decimal places the screen will
look like this.

Press enter key or use Shortcut Key Ctrl+A to save and create Unit ‘Liter’
Create Compound Units of Measurement.
Compound units are the combination of two units. In the above example assume that you
are selling Milk. If you are selling Milk in bottles, like bottles of 200 Ml, Bottles of 500
Ml, and Bottles of 750 Ml etc. In such case you can create such units and fix rate for each
type of Bottles.
The main advantages are that reports are available in both units, that IS IN Milliliter and
in Bottle.The first step to create compound units is
Create Simple unit Bottle (Btl) and Milliliter (Ml) Using the simple unit creation screen
as explained in the beginning.
Then Go to

Gateway of Tally>>Inventory Info>>Unit of Measure>>Create

Now we are in unit creation screen.

And the cursor is in Symbol Field, Press Back space, the cursor will move back to the
field Type in which you can select compound unit.

Upon Selecting compound unit type, then the unit creation screen will change like below
image.
 In this screen you can see all the simple units we created earlier under option First Unit.
To create Bottle of 200 Ml
 Select the first Unit: Bottle
 Conversion:  200
 Second Unit: Ml

Press Enter and save the screen, now we have created Compound unit Bottle of 200 Ml

In the same manner you can create Bottle of 500 Ml, Just Type 500 Under conversion in the
screen. See below image.
Topic 9:Display Inventory Reports and Statements

The transactions entered in Tally.ERP 9 are immediately posted to the respective ledgers,
books and registers. The inventory reports are generated based on these transactions. This
facilitates instant reporting and faster decision making.

The appearance of reports can be changed according to your requirements. For example,

you can generate comparison reports between different companies, periods of the financial
year, and so on.

From a report, you can drill down to the next level of details by highlighting the item and
pressing Enter. You can keep drilling down until you reach an individual voucher. Similarly,
you can move back to higher levels by pressing [Esc] key.

The special features available for the currently displayed report are indicated on the button
bar. You can activate these features with a single click. You can modify and print reports
according to your requirements.   

●     Displaying Stock Summary

●     Displaying Stock Items

●     Location / Godown Summary

●     Movement Analysis

●     Stock Ageing Analysis

Displaying Stock Summary

You can view Stock Summary in condensed or detailed mode, as per your requirements.

To view Stock Summary

1.    Go to Gateway of Tally > Stock Summary. By default, Stock Group balances are

displayed.

2.    Select Detailed to view the detailed stock summary.

The Stock Summary in Condensed mode appears as shown below:

 The stock groups display total quantities of all the stock items added. The Grand
Total displays the total value of the stock items. In case there are more than one units
of measure, the Grand Total is not displayed.

Displaying Stock Items

You can view stock items in based on the configuration you need for effective analysis of
your stocks.

To view stock items

1.    Go to Gateway of Tally > Display > Inventory Books > Stock Item.

2.    Select an item from the List of Items.

3.    Click F12: Configure to open the Configuration screen.

4.    Set Show Graph by Values (not Qty)? to Yes and press Enter. This will display a graph

showing goods inwards and outwards (red for inwards, blue for outwards).
 You can also use the Stock Summary to view Stock Items. Place the cursor on the item,
and press Enter.

●     Viewing Stock Item Vouchers

●     Stock Query

●     Stock Transfers Register

●     Physical Stock Register

●     Stock Cost Estimation

Location or Godown Summary

The location or godown summary contains details about all the godowns created in
Tally.ERP 9.

To view the Godown/Location Summary Report

1.    Go to Gateway of Tally > Display > Statements of Inventory > Godowns > Primary.

2.    Press Alt + F1 for a detailed view. The Godown Summary screen is displayed as shown

below:
  

3.    Press Enter on the required Godown to go to individual Godown Summary, as shown

below:

F12: Configuration in Location/Godown Summary

Configurations will enable the user to view the report according to the requirements.
  

●     Show goods inwards?: By default this option will be set to ‘No’, when it is set ‘Yes’, it
will display the all ‘Inward’ details, like inward quantities, inward rate and inward
value.

●     Show goods outwards?: By default this option will be set to ‘No’, when it is set ‘Yes’,
it will display the all ‘Outward’ details, like outward quantities, outward rate and
outward value.

●     Show Closing balance?: By default this option will be set to ‘Yes’. It will display
closing quantity, rate and value.

o     Closing Quantity = Opening quantity + Inward Quantity – Outward Quantity

o     Closing Rate = Closing Value / Closing Quantity

o     Closing Value = The Closing Stock Value will be based on the Costing Method
adopted for each item.

●     Show Opening Balance?: By default this option will be set to No, when it is  set Yes, it
will display the Opening Balance given in the stock item master screen.

●     Show All Items (incl. zero balances)?: By default this option will be set to No, when it
is set Yes, it will display the zero balance items also (stock item transacted for the
particular godown will be displayed. Non -transacted stock item will not be
displayed).
 ●     Exclude Items With No Transactions?: By default this option will be set to No, when it
is set Yes, it will display those items which have no transactions.

●     Show Gross Value for Outwards?: Gross value of Outwards refers to that value which
is inclusive of the values of VAT/any other allowed ledger under accounting
allocation screen of the stock item. By default this option will be set to No, when it is
set Yes,it will display the gross value of the outwards.

●     Show Consumption & Gross Profits?: By default this option will be set to No.
Pressing F7: Show Profit in the button bar or enabling this option in F12:
Configuration will display gross profit / loss of the particular godown selected. For
detailed explanation on each column click here

●     Show Gross Profits on Gross Value?: By default this option will be set to No. When
this option is set to Yes, the gross profit will be calculated on the Gross Value which
is inclusive of the values of VAT/any other allowed ledger under accounting
allocation screen of the stock item.

●     Show using Alternate Units?: By default this option will be set to No. By setting this
option to Yes, it will display the Alternate Units information, if stock item is created
with the Alternate units.

●     Show Tail Units of Compound Units?: By default this option will be set to No. By
setting this option to Yes, it will display the Compound Units information, if stock
item is created with the Compound units.

●     Appearance of Stock Item Names: You can to select the different display name styles
for the stock item. By default it will display the Name Style which is selected in
the F12: General Configuration under Style of Names.

●     Appearance of Names: You can select the different display name style other than
stock items (for example Stock Group). By default it will display the Name Style
which is selected in the F12: General Configuration under Style of Names.

●     Scale Factor of Values: You can view the report with different scale factors.

●     Sorting Method: You can view the report Alphabetical or Amount-Wise or Quantity –

Wise or Rate-Wise increasing or decreasing.

●     Expand all levels in Detailed Format?: You can view the report in detailed mode. It
will display the Sub-Groups, Stock item,Batches and Godown details.

Button Options in Godown Summary

●     F4: Godown: Navigation to other godown from the same report is possible.

 ●     F5: Item Wise: If any of the stock items is created with Stock Group / Sub- Stock
Group, then from the same report you will be allowed to view the item wise report.

●     F6: Monthly: This report will display the monthly wise movement of the stock item
for the particular godown.

●     F7: Show Profit: Godown wise stock item profitability will be displayed. For detailed
explanation on each column click here

●     F7: Orders: You will be able to view Nett Stock, Purchase Orders

Outstanding, Saleable Stock, Sales Orders Outstanding andStock-In-Hand for
the stock item select based on the particular Godown.

●     C: New Column: You can view the report of various godowns in the single screen. In
the column details screen under Name of Godown select the required godown, New
Column will be displayed in the existing screen along the godown selected earlier.

●     A : Alter Column: If you like to alter the existing godown display and like to view the
report of other godown, Alter Column can be selected

●     N :  Auto Column: This option will enable you to view the report Weekly, Fortnightly,
Monthly, Yearly, and so on, of all godowns.

To view Stock summary from the above Godown Summary

●     Press Enter on any of the Stock Group / Stock Items. The Stock Summary report will
appear as shown below:

 
Movement Analysis

Movement analysis shows the analysis of only those inventory transactions which are
integrated with the accounts, i.e. inventories which are also recorded in the books of
accounts. Inventory vouchers which affect the stock only in quantitative terms are not
considered.

Movement analysis report is used for comparative studies. They give an insight into the flow
characteristics of the stock in an organization. It also helps in finding out the slow moving
items which cause blockages in the flow of the working capital of the organization.

●     Go to Gateway of Tally > Display > Inventory Books > Movement Analysis.

Movement Analysis Reports show only those inventory transactions for which accounting
transactions have also been recorded. You can analyze stock movements by stock groups,
categories, financial group or ledger.

●     Stock Group Analysis

●     Stock Category Analysis

●     Stock Item Analysis

●     Group Analysis

●     Ledger Analysis

●     Transfer Analysis
Viewing Stock Ageing Analysis Report
You can view the Ageing Analysis report and also change the Appearance of Stock Item
Names.
To view Ageing Analysis Report

●     Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis > Select

the group for which Ageing Analysis is required.

This report is displayed in a columnar format showing item details, quantity, value
and age-wise break-up.

To get a report for all the stock items, select Primary from List of Groups.

If you want to view only the quantity of the item, press the Hide Amount button or
press Alt+A.
Changing the Appearance of Stock Item Names in Stock Ageing Analysis
Report

By default, all the stock items in the ageing analysis report are displayed according to the
stock item name. This is defined in the General Configuration screen (Gateway of
Tally > F12: Configuration > General).

To change the way stock item name is displayed from the Stock Ageing
Analysis screen

1.    Press F12: Configure.

2.    In the Configuration screen, select the required Display Name Style in the

field Appearance of Stock Item Names.

3.    Press Enter in the Total Quantity column of an item to open the Stock Item Monthly

Summary report, as shown below:
 For further drill down to Stock Journals of the Item, press Enter for the month you want
the stock journal.

First Topic Inventory Features

Using the Inventory Features, you can enable various options required for making
transactions in your business.

To enable the inventory features

1.    Go to Gateway of Tally > F11: Features > F1: Inventory. The Company Operations

Alteration screen appears as shown below:
 2.    Enable the required options.

3.    Press Ctrl+A to accept.

General

Option Functionality Additional Information

Enable this option to include

the stock or inventory balance
Stock records often contain
Integrate from the inventory records.
compensating errors caused by wrong
accounts Provides a drill down to the
allocation to items. This feature
and stock registers from balance
enables finalization of financial books
inventory? sheet.
without waiting for the reconciliation
  Disable this option to
of stocks.
maintain accounts and
inventory separately.
Enable
zero-
valued Enable this option to allow
transactio zero-valued transactions in  
ns? Inventory vouchers.
 

Storage and Classification

Option Functionality
 Maintain multiple
Enable this option if you have more than one stock storage
Godowns / Excise
locations or godowns, and you want to track stock movement
Units?
across these Locations.
 
Maintain stock
categories? Enable this option to create and maintain stock categories
 
Maintain batch-wise Enable this option to maintain batch information pertaining to
details? Stock Items. A new field Maintain in Batches is displayed in
  the Stock Item Creation screen.
Enable this option to set expiry dates for the batches. This
Set expiry dates for
displays an additional field Use Expiry Dates in the Stock
batches?
Item Creation screen.
Use separate actual
Enable this option to specify quantities, that are different from
and billed quantity
those delivered/ received, when invoicing.
columns?
 
 

Order Processing
Option Functionality

Enable purchase order

Enable this option to create purchase orders. This feature
processing?
can also be used for pre-closure of purchase order.
 
Enable sales order
processing? Enable this option to create sales orders.
 
Enable job order
processing? Enable this option to create job work out or in orders.
 

Invoicing
Option Functionality

Enable invoicing? Enable this option to create Sales and Purchase

  vouchers in the invoice format.
Enable this option to enable voucher class option in
Record purchases in
purchase voucher type.
invoice mode?
 
Use debit and credit Enable this option to use the debit note and credit note
notes? voucher types.
Record credit notes in Enable this option to create credit notes in invoice
 invoice mode? mode.
Record debit notes in
Enable this option to create debit notes in invoice mode.
invoice mode?

Purchase Management
Option Functionality

Track additional Enable this option to obtain a break-up of purchase costs,

costs of purchase? without the need to separately debit ledger accounts for

  expenses.

Sales Management

Option Functionality

Use multiple price Enable this option to create multiple price

levels? levels.

Other Features

Option Functionality

Use tracking numbers
(enables delivery and Enable this option to use tracking numbers to maintain

receipt notes)? the relation between delivery notes and invoices. This is
available for both purchases and sales.
 

Enable this option to record rejection of goods

Use rejection inward and separately and not through a common debit note or

outward notes? credit note.

Enable this option to record transfer of item quantity

Use material in and out
towards the party and transfer material from one
vouchers?
Godown (Location) to the other.

Use cost tracking for stock

Enable this option to create credit notes in invoice
item?
mode.
 

Record debit notes in Enable this option to analyse the cost involved for an
invoice mode? item.