Inventory Management in TallyPrime Accounting Software

It allows you …

1.       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.

2.       You can send a receipt note to your supplier once you receive the goods at your location.

3.       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.

4.       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.

5.       You can also track the items that you have sent to your customers, send them delivery notes with the goods sent.

6.       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.

7.       You also have the option to record the finished good, co-products, by-products, and scrap that are generated during manufacturing.

1.   Manufacturing Process in TallyPrime Accounting Software

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.

Example:

Swayam Sales decides to Assembles a Computer of his own Brand i.e. Computer – SS01 ( GST-18%) to be Sold in the market with the following 11 Components..

Name of ComponentsQty.Price
Cabinet1 Nos.4500
CD Drive1 Nos.600
Keyboard-Logotech1 Nos.1500
Motherboard Intel1 Nos.12600
Mouse – Logitech1 Nos.500
Processor – Intel1 Nos.4500
RAM 8 GB1 Nos.3200
HDD Seagate 2 TB External1 Nos.6000
Monitor SONY 20”1 Nos.16000
UPS Apc1 Nos.1600
Windows XP1 Nos.4500
Total Component Costing 55,500
Add : Installation Charges 1,500
TOTAL COSTING OF 1 ASSEMBLED PC [Computer-SS01 57,000

1.       Gateway of Tally > Vouchers > press Alt+F7 (Stock Journal).

Alternatively, Alt+G (Go To) > Create Voucher > press Alt+F7 (Stock Journal).

(if you want to change the voucher date, press F2 (Date).)

2.       Under Source (Consumption):

a.  Select the Name of Item from the List of Stock Items, which needs to be transferred under Source.

b.  Select the Location from the List of Locations, to which goods are being transferred.

c.  Enter the quantity of the items that is being transferred. The rate and amount will be displayed automatically.

3.  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. 

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2.   Transfer of materials from one location to another in TallyPrime

  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.

Example :

Business transfer its stock ‘Desktop Lenovo K200’ 10 Nos. from BALASORE Godown to BHUBANESWAR Godown .

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3.   Delivery Note in TallyPrime

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.

In your business, you may be following a process of raising a sales order first, then recording a delivery note, and then a sales invoice against the delivery note. In TallyPrime, you can record transactions in the same order. You can also link all the three invoices.

Here is an example of recording a delivery note against a sales order.

Example:

Issue a Delivery Note against Sales Order No. SO-1 dated 2-5-2020 to Lexsite Pvt. Ltd. (vide Delivery Note No. DN-1) for following products.

                                Printer Epson Lq 1024                                     1 Nos.                   21875

                                Printer HP Laser Jet                                         1 Nos.                   20000

                                Printer Samsung Laser Jet                            1 Nos.                   18750

Solutions:

1.            Open Delivery Note voucher and enable the Party details screen.

  1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Delivery Note.
    Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Delivery Note.
  2. Click Yes to activate the delivery note voucher.
  3. Press F12 (Configure) > ensure the option Provide Dispatch, Order, Export details is set to Yes.
    Henceforth, you can enter the supplementary details in the delivery note, until you change the option in F12 (Configure)

2.            Select the party ledger, sales order details, and record the transaction.

a.            In the Party Details screen, select the Sales Order Number.

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b.            The details from the sales order will be displayed in the delivery note.

c.             Select an existing Tracking No. or create a new Tracking No. .

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d.            Make the required changes in the items/quantities, if required.

e.            Save the delivery note. As always, you can press Ctrl+A to save.

3.            The Receipt Note appear as shown below:

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The sales order will get closed, if completely delivered. Otherwise, it will be partially closed, and the details can be viewed in the Sales Order Outstanding report .

4.   Rejection In  Voucher in TallyPrime

This voucher is used to record goods received back from a customer after rejection. This Inventory voucher does not affect Accounting which affect inventory of the business only.

Example: Swayam Sales takes back the following items rejected by a customer Lexsite Pvt. Ltd. which was issued through Delivery Note.

                Printer Epson Lq 1024                     1 Nos.                   21875

Solutions :

To view the Rejections In Voucher

1.         Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Rejections In.

Alternatively, press Alt+G (Go To) > Create VoucherF10 (Other Vouchers) > type or select Rejections In.

In case the voucher is inactive, you will be prompted to activate the Rejections In voucher type. Select Yes or press Y to proceed.

2.         Provide the party details.

  • Under Ledger Account, select the party’s name from whom the goods have been returned.
  • The party’s name appears under Customer’s Name and Address with the address entered in the ledger master.

3.         Provide the stock item details.

  • Select the stock item. In the Item Allocations screen, if you had recorded a delivery note with tracking number, the same will appear. You can select the relevant tracking number.
  • Enter the Quantity and Rate.

The Rejection In Voucher of the above example transaction will be as below :

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4.         Accept the voucher. As always, you can press Ctrl+A to save.

The stock will increase to the extent of quantity entered in the rejections in voucher.

5.   Rejection Out Voucher in TallyPrime

This voucher is used to record goods returned back that were rejected by the company. For example, the company returns back those items that were rejected by a vendor.

Example:             Swayam Sales Reject the following items received against Material Receipt Note from the supplier ACER India Ltd.  

                Laptop ACER 4720Z                                          1 Nos.                   32500

Solutions :          

To view the Rejections Out Voucher

1.         Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Rejections Out.

Alternatively, press Alt+G (Go To) > Create VoucherF10 (Other Vouchers) > type or select Rejections Out.

In case the voucher is inactive, you will be prompted to activate the Rejections In voucher type. Select Yes or press Y to proceed.

2.         Provide the party details.

  • Under Ledger Account, select the party’s name from whom the goods have been returned.
  • The party’s name appears under Customer’s Name and Address with the address entered in the ledger master.

3.         Provide the stock item details.

  • Select the stock item. In the Item Allocations screen, if you had recorded a delivery note with tracking number, the same will appear. You can select the relevant tracking number.
  • Enter the Quantity and Rate.

The Rejection Out Voucher of the above example transaction will be as below :

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4.         Accept the voucher. As always, you can press Ctrl+A to save.

The stock will decrease to the extent of quantity entered in the rejections out voucher.

6.   Receipt Note Voucher (GRN) in TallyPrime

A Receipt Note voucher is used to record receipt of goods/items at stores. 

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.

For example , the Company receives new stock item from a Supplier. If a Purchase Order exists for that supply, selecting the PO reference in the Receipt Note will display its particulars.

The details recorded in the Receipt Note are the PO reference, Ledger account, Supplier’s name and address, Name of stock item, Stock location, quantity, rate, amount and the transaction narration.

The Receipt Note is similar to the Goods Receipt Note (GRN) type of entry. When the Receipt Note is passed it updates the inventory levels.

Purchase includes Accounting and Inventory.

In Tally when a Receipt Note is tagged to a Purchase entry the whole transaction is completed.

Example :

In the earlier section, we have recorded Purchase Order No-1 on 1-4-2020 with due date 1-5-2020 with following products from ACER India Ltd. All the given Products as per Purchase Order is received on 01-5-2020.

Laptop ACER 4720Z1 Nos.32500
Laptop Compaq A901TU1 Nos.38500
Laptop HCL Mileap1 Nos.35000

Let us raise a Receipt Note for the PO/1 raised on 1-4-2020 with due date 1-5-2020.

Solutions:

1.         Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Receipt Note or Press ALT+F9.

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.            Provide Supplier details to Yes in F12: Configure  ( Voucher Configuration Screen)

3.            Press Ctrl+A to accept and return to the voucher screen.

4.            Select Party A/c Name from the List of Ledger Accounts .

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.

The Party Details screen appears as shown:

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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 Enter . The Stock Item Allocations screen appears as shown:

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9.            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

The Receipt Note appear as shown below:

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10.          Press Enter to save.

7.   Physical Stock Voucher (Ctrl + F7) in TallyPrime

Physical Stock Voucher is used for recording the actual stock which is verified or counted.  It could happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds a discrepancy between actual stock and computer stock figure.

1.         Gateway of Tally > Vouchers > press Ctrl+F7 (Physical Stock).

Alternatively, Alt+G (Go To) > Create Voucher > press Ctrl+F7 (Physical Stock).

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2.            Enter the stock taking date.

3.            Select the name of the item from the List of items , for which physical stocks need to be recorded.

4.            Select the Godown (Godown will appear only if, Maintain multiple Godowns is activated  in F11:Features F2:Inventory Features ), in which the Physical Stock taking was conducted.

5.            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.

6.            Enter the Physical Stock quantity.

Note: Physical Stock quantity will be displayed as Actual Stock in the Stock Summary from the date of entry of the Physical Stock.

8.   Material In Voucher in TallyPrime

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

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.

  • Select the supplier’s (Job Worker)/customer’s (Principal Company) name as the Party A/c Name. The Party Details screen appears.
  • 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.
  • Select the appropriate location in Source Location field, based on the type of Job Order.
  • In case the Job Worker is receiving the raw material from the principal manufacturer, the Source Location should be set to Not Applicable.
  • Select the stock item.
  • Select the Location. Enter the Quantity and Rate. The Amount appears.
  • As always, press Ctrl+A to accept the screen and return to the inventory voucher.

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9.   Material Out Voucher in TallyPrime

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.

  • Select the supplier’s (Job Worker)/customer’s (Principal Company) name as the Party A/c Name. The Party Details screen appears.
  • Select the appropriate location in Destination Location field, based on the type of Job Order.
  • In case the Job Worker is receiving the raw material from the principal manufacturer, the Destination Location should be set to Not Applicable.
  • Select the stock item.
  • In the Stock Item Allocations screen, select the Location. Enter the Quantity and Rate. The Amount appears.
  • Press Ctrl+A to accept the screen and return to the inventory voucher.

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