Stock Item Management in TallyPrime Accounting Software

Does your business involve stock items or inventory in the day-to-day transactions? If so, you certainly need to manage and keep track of all your stocks – how much of them have been sold every day, what is the balance stock, are the stocks moving as per the demand, do you have too much unused stock and so on. In TallyPrime, you can create as many stock items as you have in the business, specify units of measurements (UoMs) for each stock item and define tax rates, without having to enter these details again during transactions.

Whether you keep your stocks in different groups, batches or godowns, based on your business practices, you can find the details of your stock  items any way you need.

Once you have created stock item, you can records your business transactions and keep track of the stock item details. Simply enter the name of the stock item you want to create and save it. Also, provide the opening balance details such as quantity, rate, value applicable tax rates so that you can record transactions in less time, without the need to enter all of these details each time in the transactions.

1.    Creating a Stock Group in TallyPrime

From this screen you can create a single stock group in the following manner :

1.         Gateway of Tally > Create > type or select Stock Group and press Enter.
Alternatively, press Alt+(Go To) > Create Master > type or select Stock Group > and press Enter.

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2.            Enter the name of the Group.

3.            Select the group under which this group will be classified.

4.         Accept the screen. As always, press Ctrl+A to save.

Know this :

Alias

Enter additional name apart from primary name [if required]. You can create any number of additional names.

Under

Under: Select Primary or an existing Stock Group. If you have not created any Stock Group, you can create one in Tallyprime to assign to the stock group.

As always, press Alt+C, to create a master on the fly.

Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Group > press Enter.

Can quantities of items be ADDED?

This field pertains to information on measuring the units of the Stock Items that you would categories under the Stock Group.

The Stock Items categorised under the group should have similar units for them to be added up. You cannot add quantities in Kgs to quantities in Pcs.

Any modifications such as name, change of parent group is possible here.

Set / Alter GST Details :

This Option is applicable when all the items under such Groups having the Same HSN Code and Same GST Rate. Otherwise, this option should be No if multiple GST Rates of Items under this group are there.

If this option is set to Yes, the Set / Alter GST Details for Stock Group screen will be as below :

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Taxability :

Select Taxable for goods and services that are classified as taxable type of supply under GST. Select Exempt , if the type of supply is exempted from tax under GST, or select Nil Rated , if the tax rate applicable to the type of supply is 0% under GST.

Integrated Tax :

When you enter the integrated tax, state tax and central tax are calculated as half of the integrated tax specified. You can change state tax or central tax by using F12 configuration.

Press Ctrl+A to save.

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

[Practical Assignment-8]

Create the following Stock Groups either in Single Mode or Multiple Mode:

  • Accessories       
    • Cabinet
    • CD Drive
    • Keyboard
    • Mother Board
    • Mouse
    • Processor
    • RAM
    • Webcam & Others
  • Desktop (Branded)         
  • Desktop Pc (Assembled)
  • Hard Disk            
  • Laptop (Branded)           
  • Monitors            
  • Printer 
  • Software            
  • UPS       

2.    Creation of Stock Units of Measure in TallyPrime

Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. You can measure the Stock Item by Units, like money is measured in Currency. For example, Liters, Meters, Kilograms, Pieces, Box, Dozen, etc. Units can be classified under the following types :

  1. Single / Simple Units : When only one Unit is used for receipt and issue of stock items. Above-mentioned are all example of Single Units.
  2. Compound Units: When two different types of Units can be used for receipt and issue of the Stock item is called compound unit. For example :
First UnitConversion FactorSecond Unit
Dozen12Pcs.
Meter1000Millimeters.
Box30Pcs.

A.    Simple Units of Measure in TallyPrime

1.         Gateway of Tally > Create > type or select Unit and press Enter.

Alternatively, press Alt+(Go To) > Create Master > type or select Unit > and press Enter.

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This field will show the Type of Units.

  • Simple
  • Compound.

Simple units are Nos, Pcs , and so on. Compound unit is a combination of two simple units.

By default TallyPrime will show the Simple unit for creating the unit of measure.

You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the previous field].

2.            Define the Symbol of the unit, for example, Nos. This symbol is used in all displays and printouts.

3.            Specify the Formal Name of the symbol, for example, Numbers.

4.            Unit Quantity Code (UQC) is a uniform measuring unit used by the department for measuring quantity in the returns filed. UQCs are used to maintain consistency and prevent variations in quantities in the returns filed by different businesses. This requires the businesses to measure the quantities of items using the UQC from the list given by the department.

Using TallyPrime, you can map your unit of measurement to the UQC given by the department, and file the returns.

5.             In this field you can specify the Number decimal places for the Units from 0 to 4. This field is useful for Units measured in fractions.

For example, Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places required is 3

B.    Compound Units of Measure in TallyPrime

A Compound Unit is a relation between two Simple Units. Hence, before you create a Compound Unit, ensure that you have already created two Simple Units.

For example, To Create Compound unit – Doz (Dozen) of 12 Nos (Numbers), you have to create two simple units,  Doz (Dozen) and Nos (Numbers) and set the conversion factor as 12.

1.         Gateway of Tally > Create > type or select Unit and press Enter.

Alternatively, press Alt+(Go To) > Create Master > type or select Unit > and press Enter.

The Unit Creation screen is displayed as shown. Now Click on Type field or Press SHIFT + TAB or Press Backspace Key.

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2.            Select Compound from the Types of Units and press Enter. The Conversion field will be displayed for creating Compound unit.

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3.            Select the First unit from the Units List. In the above example, Dozen will be the First Unit.

4.            Specify the Conversion Factor. In the above example, Conversion factor will be 12.

5.            Specify the Second Unit from the Units List. In the above example, Number will be the Second Unit. This unit is also called Tail Unit.

6.            Use CTRL + A or Accept the Screen for Saving of Compound Unit Creation.

3.    Creation of Stock Items in TallyPrime

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.

1.         Gateway of Tally > Create > type or select Stock Item > and press Enter.

Alternatively, press Alt+(Go To) > Create Master > type or select Stock Item > and press Enter.

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2.         Name & alias: As in other masters, you can specify multiple aliases for the stock item.

3.         Under: Select Primary or an existing Stock Group. If you have not created any Stock Group, you can create one in TallyPrime to assign to the stock item.

As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter.

4.         Units: Select the unit of measurement applicable for the stock item. If the unit is not listed, you can create the unit of measurement in TallyPrime to assign to the stock item.

As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Units > press Enter.

5.         Statutory Details: Set the applicable Taxability option for the stock item under Statutory details, The option will depend on the option enabled in the F11 (Features) screen. 

6.         Opening Balance: Specify the opening balance for the Stock Item as on the date of Beginning of Books.

Quantity: Specify the stock item Quantity.

Rate: Specify the stock item Rate.

Value: TallyPrime automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, TallyPrime automatically refreshes the Rate field accordingly.

7.         Accept the screen. As always, press Ctrl+A to save.

4.    Setting GST Details in Stock Item ( Tax On Value) in TallyPrime

If GST is enabled, set GST Applicable to Applicable and enter the GST details by enabling the option Set/alter GST Details  to Yes. You will get the window of GST Details for Stock Item as below:

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Taxability :

Select Taxable for goods and services that are classified as taxable type of supply under GST. Select Exempt , if the type of supply is exempted from tax under GST, or select Nil Rated , if the tax rate applicable to the type of supply is 0% under GST.

Integrated Tax :

When you enter the integrated tax, state tax and central tax are calculated as half of the integrated tax specified. You can change state tax or central tax, and manage other GST details by using F12 configuration.

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Press Ctrl+A to save.

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

  • In the Quantity Field, specify the stock item Quantity.
  • In the Rate field, specify the stock item Rate.
  • In the Value field, TallyPrime automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, TallyPrime automatically refreshes the Rate field accordingly.

The Stock Item Creation screen appears as shown:

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5.    Setting MRP details in Stock Items in TallyPrime

To capture the MRP of stock items in the invoice, you have to enter the MRP details in the stock item master.

1.            Click F12: Configure in the Stock Item Alteration / Creation screen.

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2.            Allow MRP Details – Yes .

3.             Press Ctrl+A to accept.

To enter the MRP for the stock item

1.            In the Stock Item Alteration screen, enable Set/alter MRP details?

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2.            In the MRP Details screen:

  • Allow Set/Alter MRP details ? – Yes , if you want to modify the MRP during the transaction.
  • Consider MRP for calculation of GST rate in Slab rate? – Set this to Yes if you want the MRP of a stock item to be considered for GST rate calculation when slab rates are applicable. In this case, the tax amount still gets calculated on the selling price of the item.
  • Enter the MRP Rate/Margin .

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  • Press Ctrl+A to accept.

3.            In the Stock Item Alteration screen, press Enter to save.

6.    Setting ‘Nil-Rated’ , ‘Exempted’, ‘Zero Rated’ & ‘ Non-GST’ Items & Goods using TallyPrime

With the introduction of GST, the goods and services have been classified into Nil Rated, Exempted, Zero Rated and Non-GST supplies. The Purchase or Sales of these goods to a local or interstate customer does not attract GST, and can be recorded using a Purchase / Sales voucher.  Let us take a look at what distinguishes each of them with some examples:

SupplyGST ApplicableType of SupplyEligibility for ITCExamples
NIL Rated0%Everyday itemsNoGrains, Salt, Jaggery, etc.
ExemptedBasis essentialsNoBread, Fresh Fruits, Fresh Milk, Curd etc.
Zero Rated0%Overseas supplies, Supply to Special Economic Zones (SEZ) or SEZ DevelopersYes
Non- GSTSupplies for which GST is not applicable but can attract other taxesNoPetrol, Alcohol etc.

In case of above Items and Goods , the option Nil Rated / Exempt has to be selected as the Taxability in the GST Details screen of the item or  item group master.

A. Setting Nil-Rated & Exempted items and Goods in TallyPrime :

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[Practical Assignment-10]

Swayam Sales deals the following Nil-Rated / Exempted Items and goods which purchased and sold in his business. Create the following Items as details given.

Name of ItemsUnit of MeasurementTaxability of GST
Moong Dal(Unit is Kg. with Decimal 3)with Nil Rated GST
Salt(Unit is Kg. with Decimal 3)with Nil Rated GST
Bread( Unit is Pcs.)with Exempt GST
Fruits( Unit is Kg. with Decimal 3)with Exempt GST

B. Setting Non-GST Items & Goods in TallyPrime

Some goods such as petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel, and liquor fit for human consumption, are not covered under GST and hence are classified as non-GST goods. In TallyPrime, items can be set as non-GST goods.

1.            In the GST Details screen of the stock item or stock group, click F12: Configure .

2.            Enable the option Set type of goods? To Yes

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3.            Press Ctrl+A to accept.

4.            In the GST Details screen, set the option Is non-GST goods? to Yes to configure the item/group as Non-GST.

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5.            Press Ctrl+A to accept.

6.            Save the item or group master.

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