Tally ERP
Tally ERP
Tally ERP
1.5. Creating/Modification / Deletion of Stock Items 8. Price Levels and Price Lists
2.7. Display Columner Orders & Stock Detials 11. Inventory Ageing Analysis
3.1. Defining Reorder Levels 12.1.Using different Actual and Billed Quantities
4. Tracking Numbers
5. Batch-wise Details
The main concept of Trading activities are receipt of goods and Stock Group : As per requirement of the business numerous items
delivery of goods. We generally call them PURCHASE or SALE can be created, but to generate a report on similar types of stock
activities. The trading items can be RAW MATERIAL, FINISHED items you need the classification of stock items. This classification will
GOODS, SEMI-FINISHED GOODS, etc. For better Organization you can help you to get stock report in an organized manner. For example,
use the group and sub-group for classification of the trading item. Raw Material, WIP, Finished Goods, Hardware, Software, Electrical,
Electronics,
2. Stock Items : Create your Stock Items here, for example, TV, Can quantities of items be ADDED?
Sound System, VCD, etc.
This field pertains to information on measuring the units of the Stock
3. Voucher Types Items that you would categorise under the Stock Group.
4. Unit of Measurement : Create your measurement Unit for The Stock Items categorised under the group should have similar
Items, for example, LTR. MTR, PCS, BOX etc. units for them to be added up. You cannot add quantities in Kgs to
quantities in Pcs.
5. Quit : Exit from the menu.
Any modifications such as name, change of parent group is possible
Before creating the Inventory info menu we should know what stock here.
groups, stock items and units of measurement are.
1.2.1. Modifying a Single Stock Group
What are Items, Groups and Units ?
Gateway of Tally.ERP > Inventory Info > Single Stock Group > Alter
Definitions
1.2.2. Displaying a Stock Group
Stock Items : Stock items are the primary inventory entity, like
Ledgers. Usually it means Item or Product, which can be buying, Gateway of Tally.ERP > Inventory Info > Single Stock Group > Display
selling or issue for production purpose. Each item is required to be
accounted for, and receipt or issue needs to be created. In fact, you 1.2.3. Deleting a Single Stock Group
will create a stock ledger account for each item and Tally.ERP calls
Gateway of Tally.ERP > Inventory Info > Single Stock Group > Alter
this account “Stock Item”.
For deleting a group from the list the key combination is ALT + D.
Stock Units : You can measure the Stock Item by Units, like money is
Remember that the group should be empty, which means that no
measured in Currency. For example, Liters, Meters, Kilograms, Pieces,
stock item is under this group.
Box, Dozen, etc. Units can be classified under the following types :
1.3. Creating a Multiple Stock Group
1. Single Units : When only one Unit is used for receipt and
issue of stock items. Above-mentioned are all example of Single 1. Gateway of Tally.ERP 9 > Inventory Info > Multiple Stock
Units. Group > Create.
2. Compound Units: When two different types of Units can be 2. Select / Create the group ( for creation press ALT+C)
used for receipt and issue of the Stock item is called compound unit.
For example : Image-1 3. Enter the name of the groups
First Unit Conversion Factor Second Unit For Example: A Sanitary Fittings store has different types of fittings.
Gateway of Tally.ERP g Inventory Info g Units of Measure g Alter Ensure that you are at the Gateway of Tally of National Traders. In
the F11: Features (Inven- tory Features), activate the following
Key combination is ALT+D features:
After creation of Groups and units of measurement you can create ‡ Allow Sales Order Processing.
the Stock Item from…
‡ Use Tracking Numbers (Delivery / Receipt Notes)
1.5.1. Creation of Single Stock Item
2.2. Purchase Order Processing
1.5.2. Creation of Multiple Stock Item
Raise a Purchase Order on 15-12-2009 on Navketan Bricks (vide
1. Gateway of Tally.ERP g Inventory Info g Stock Item g Order No. 1) for 5,000 pcs ofBricks @ Rs.3 /brick. (Godown -
Multiple Stock Items g Create Warehouse). The due date is 26-12-2009 and addtional Freight
charges @ 3% is applicable.
2. Select the Group of the Product
Setup:
3. Enter the name of the Item
‡ Create a Supplier - Navketan Bricks Under Sundry Creditors with
4. Select the Category from the list.
Maintain Balances bill-by-billset to Yes.
5. Specify the Unit
‡ Create a Stock Item - Bricks under Building Materials Stock Group,
6. Enter the Quantity and select Not Applicablefor the Stock category and specify the unit
of measure as Pcs (If not listed cre- ate using Alt+C).
7. Enter the Rate
‡ Press F12: Purchase Order Configuration and ensure that:
1.5.3. Modification and Deletion of Stock Item
„ Accept Supplementary Details is set to No.
2.Order Processing in Tally.ERP9
„ Complete Accounting Allocations in Order/Delivery Note is set to
2.1. Meaning-Order Processi Yes.
Order Processing refers to placing orders with suppliers for „ Use Common Ledger for Item allocation is set to No.
purchasing from them or receiving orders from customers for the
purpose of selling. Step 1: Create Purchase Order
In Tally.ERP 9, Order Processing is linked to Inventories. Using Order Go to Gateway of Tally > Inventory Vouchers > F4: Purc. Order.
processing you can:
1. Date: 15-12-09.
‡ Track the order position of a stock item;
2. Party's A/c Name: Navketan Bricks
‡ Know whether the goods ordered have arrived or not;
3. Order No: 1 This particular Order No. field is an additional field to
‡ Know whether the orders have been delivered on time and record the order number if different from the voucher number.
thNational Traderse reasons for the delay if any.
4. Name of the item: Bricks. Press Enter and the Item allocation sub-
In this lesson, you will learn the method of recording and linking screen appears.
purchase orders to purchase invoice andsales orders to sales
‡ Due on: 26-12-09 (It is the due date for the delivery of the item.
invoices. You will also learn how to display outstanding orders and
This will enable the moni- toring of outstanding deliveries. The order
the effect of orders on stocks
can be split for delivery on different dates).
The main concept of Trading activities are receipt of goods and
‡ Location: Warehouse. (Only when the multiple location feature is
delivery of goods. We generally call them PURCHASE or SALE
active, this field is required to be given, else it does not appear.)
activities. The trading items can be RAW MATERIAL, FINISHED
GOODS, SEMI-FINISHED GOODS, etc. For better Organization you can ‡ Quantity, Rate and Amount - 5,000 Pcs @ 3 per Pcs (The amount is
use the group and sub-group for classification of the trading item. calculated automat- ically but is modifiable to enable rounding off)
The completed Stock Item Allocation sub-screen appears as shown 6. Select Tax @ 17.5% (Create it under Duties & taxes to be charged
below : on the total sales).
5. Press Enter until you reach the Accounting Details screen. 7. Type the narration as Sales Order entry as on 16th December 2009.
‡ Allocate the amount to Purchases ledger and return to the The completed Sales Order appears as shown below :
Purchase Order screen.
8. Press Y or Enter to accept the screen and return to the Gateway of
‡ Press Enter on the blank field to take the cursor to the tax/ expense Tally.
field.
2.5. Altering a Sales Order
6. Select Freight Charges at 3% on the item value.
To Alter a Sales Order,
7. Narration: Optional.
Go to Gateway of Tally > Display > Day Book > F4: Chg Vch and select
2.3. Altering a Purchase Order Sales Orders or Go to
To Alter a Purchase Order, Gateway of Tally > Display > Inventory Books > Sales Order Book.
Go to Gateway of Tally > Display > Day Book > F4: Chg Vch and select 2.6. Display Order Position
Purchase Orders or
Now that we have raised one purchase order and one sales order, let
Go to Gateway of Tally > Display > Inventory Books > Purchase Order us view the order position to know the amount of stock that is in the
Book process of order both inward and outward:
Enter a Sales Order on 16-12-2009 on WinLab Technologies (vide ‡ Press the F7: Orders button or press Alt + F7.
Order No. WT/5) for 4,000 pcs(godown - Warehouse) of Bricks @ Rs.
5 /brick. The due date is 27-12-2009 and tax @ ‡ Select Sales Orders Outstanding, set No to Use Due orders only?.
17.5% is applicable. ‡ Select Building Materials field and drill down to the Order Details
screen, by pressing enter twice.
Step1: Create Sales Order
‡ In the Sales Order Outstanding screen. Press Alt+F1 to view the
Go to Gateway of Tally > Inventory Vouchers > F5: Sales Order. report in detailed for- mat.
2. Party's A/c Name: WinLab Technologies The Order Details report is generated as on December 20, 2009.
Change the period to a different month and observe what happens.
3. Order No: Enter WT/5 - The voucher number is automatically You will discover that the entry appears in the report based on the
displayed here but you are allowed to change it, because this due date given in the order.
particular Order No. field is for the customer's order number which is
most likely to be different from the voucher number. ‡ Press F12: Configure and set Yes to all the fields.
4. Name of the item: Bricks. Press Enter and the Item allocation sub- The report now shows the Outstanding positions of the Sales and
screen appears. Purchase Orders for the stock itemBricks.
‡ Due on: 27-12-09. The due date for delivery of the item. This will Note :
enable monitoring of out- standing deliveries. The order can be split
for delivery on different dates. ‡ The Sales Order Outstanding screen, by default will show the report
as on last date of the voucher entry. Hence, change the period to
‡ Location: Warehouse. view the report of the desired period
‡ Quantity, Rate and Amount – 4000 Pcs @ 5 per Pc allocate to Sales ‡ The value and magnitude of information changes online depending
Account (create it if not present) on the date filter you use. This is Tally.ERP 9's Power of Real Time
Report Generation
5. Press Enter on the blank field to take the cursor to the tax/
expense field. 2.7. Display Columner Orders and Stock Details
To view Columnar Order Position, return to the Stock Summary Orders position (including the cleared orders).
screen.
2. Raise a Purchase Order on 20-12-2009 on Navketan Bricks with the
‡ Press F1: Detailed and view the report as on 31-12-2009. order number - PO/001.
‡ Press Alt + N or Auto-Column Button, select Orders & Stock Details. Give the due date as 28-12-2009 and quantity as 4500 pcs (godown -
Warehouse) @ Rs. 4 per brick piece. Add Freight charges @ 3%.
‡ Remove Rate and Value from display, by configuring it in F12:
Configuration (This will enable all the columns to fit in one screen). 3. Enter another Purchase Order on 26-12-2009 on Navketan Bricks
with the order number as PO/002,due date as 31-12-2009 and
The screen appears as shown below : quantity as 5500 pcs (godown - Warehouse) @ Rs. 4 per Pc. Add
Freight charges @ 3%.
Note :
4. On 22-12-2009 and 27-12-2009 raise two Sales Orders on WinLab
‡ You may further drill down each column to view it in detail.
Technologies (WT/001
‡ In the Stock Summary screen, you can even bring up a new column
and WT/002). Give the due date as 29-12-2009 and 3-1-2010 and
using the New Column button and get more options for more details.
quantity as 3000 pcs and
‡ Experiment with the different Types of Values to get familiar with
4,250 pcs respectively @ Rs. 6 per Pc. Tax @ 17.5% for both orders.
them and Return to the Gateway of Tally
5. View the Order Position and then return to the Gateway of Tall
2.8. Adjusting Orders
3.Re-Order Level in Tally.ERP9
Orders are adjusted at the time of raising delivery notes and invoices.
Reorder level is the level on reaching which an order has to be placed
Step 1: Create Purchase Invoice
for a stock item. The impor- tance of a reorder level arises from the
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase > select desire to have sufficient stocks to service customer orders and at
As Invoice. thesame time not to have unnecessarily high stocks. Therefore, the
points to be consid- ered in deciding reorder levels are:
1. In the Supplier Invoice No. field enter NB/6.
‡ Lead time for suppliers to deliver stock
2. Date: 26-12-09.
‡ Delivery time specified by the customer
3. Press F12: Configure and set Accept Supplementary Details to Yes.
‡ The stock in hand to satisfy orders in the meantime.
4. Party's A/c Name: Navketan Bricks.
3.1. Defining Re-Order Level
5. Press Enter to view the Receipt Details screen as shown below:
Reorder Levels can be defined in either Simple Mode or Advanced
6. In the Receipt Details screen, select 1 from the List of Orders in the Mode. Go toGateway of Tally > Inventory Info. > Reorder Levels
Order No(s) field and accept the screen.
‡ Select Building Materials and press Enter
7. The stock item Bricks appears automatically. Press Enter and the
Item Allocations sub- screen is displayed with the quantity details. ‡ The Specify Reorder Levels screen appears where all the Stock
Items (Bricks, Cement and Steel) under the Stock Group (Building
8. Tracking number: Not Applicable (as goods are accompanying the Materials) are displayed.
bill) and re-accept the order number.
The Simple Reorder Level appears as shown:
9. Select Purchases in the Accounting Allocation screen.
Note :
10.Select Freight at 3% on the item values.
The Reorder Level screen appears based on the books beginning from
11.Enter the rest of the details and accept the screen. and the date of last entry
1. Enter a sales invoice on 27-12-2009 and link it to the sales order of ‡ Click Alt+M :Adv Min Qty button
16-12-2009 and view the
Note :
The following buttons are used in Reordering: Remember, in the section on Order Processing we first raised a
Purchase Order for 5000 pcs which we then purchased. After that, we
‡ Ctrl + F4: New Parent (to change the Stock Group). raised a Sales Order for 4000 pcs which we subsequently sold - this
resulted in a closing quantity of 1000 pcs. The column next to the
‡ Alt + R : Simple Reorder (toggles with Advanced Reorder).
name of the item displays the closing quantity as per the date
‡ Alt + M: Simple Minimum Quantity (toggles with Advanced specified in the report.
Minimum (Quantity).
Press Enter on the value shown under closing stock and you will get a
The latter two buttons allow you to define the reorder levels using monthly inward-outward-closing balance report of the selected stock
either simple parameters or advanced parameters item.
The Advanced Reorder Level screen appears as shown below : iii. Purchase Orders Pending
‡ Set the Reorder Level and Minimum Order Quantity for the stock This quantity is arrived at on the basis of the total purchase orders
item Bricks using advancedpartameters as shown below : pending. Remember we raised 2 Purchase Orders for 4500 pcs and
5500
‡ Set the Reorder level at 4,500 pcs (user-defined) or you may also
consider the consump- tionpattern for the last 5 Days and accept the pcs. The total of 10000 pcs appears in the Purchase Orders Pending
value computed as the Reorder Level. column.
‡ Press Ctrl+A to accept the screen and return to the Gateway of Press Enter on the value shown under Purchase Orders Pending and
Tally. you will get a report displaying outstanding purchase orders.
We have so far defined the Reorder Levels. However, since the actual This quantity is arrived at on the basis of the total sales orders due.
analysis is possible only through the Reorder Status report, let us Remember, we raised 2 Sales Orders for 3000 pcs and 4250 pcs.
view the same.
The total of 7250 pcs appears in the Sales Orders Due column.
Go to Gateway of Tally > Display > Statements of Inventory > Reorder
Press Enter on the value shown under Sales Orders Due and you will
Status
get a report of the outstanding sales orders.
‡ Select Building Materials
v. Nett Available
‡ Press F2 and change the period from 1-4-2009 to 30-1-2010
he quantity given here is arrived at based on the formula: Closing
The Inventory Reorder Status screen appears as shown below : Quan- tity + Purchase Orders Pending - Sales Orders Due i.e., 1000 +
# Click the A : Reorder Only button ( A : Reorder Only button toggles 10000 - 7250 = 3750 pcs.
with the A : Show Allbutton )
vi. Reorder Leve
A report is displayed giving the details of only Bricks, since the report
As per our definition, if we select the greater of 4500 pcs or the level
is configured to display only those itemswhich are below the reorder
of Con- sumption over the last 5 days then the reorder level will be
level. To analysis the Inventory Reorder Status Report, place the
cursor on any of the details given in the above report and press displayed as 4500.
Enter. You can view the details to verify its correctness.
To define consumption pattern as lower, highlight the Reorder Level
3.3. Tips Points - Re-Order Process column and press Enter to view the Specify Reorder Level screen.
Setup: ‡ For details on Original Quantity, drill down the Purchase Bills
pending and activate the option Show Original Quantity in F12:
In the F11: Features (Inventory Features), activate
Configure. You will get an additional field called Initial Quantity
‡ Use Tracking Numbers to enable the Receipt Note (Goods
On 28-12-09, you receive the purchase Bill No. NB/15 from Navketan
Receipt Note) and Delivery
Bricks for their Delivery Note No. GRN/NB for 1,000 Pcs of Bricks @
Note (Delivery Challan). Rs.4 /Pc. A credit of 30 days is allowed.
6. Debit Freight Charges: Rs. 120 ‡ For Exercise 5, raise a Invoice for 18 Pcs only.
7. Select Projects and Assignments Category and Buildings Cost ‡ After completing the above practical exercises, return to Gateway
centre of Tally and disable tracking numbers in the F11: Features (Inventory
Features).
8. Accept the Purchase voucher.
5.Batchwise Details in Tally.ERP9
After completing the above entry, view Purchase Bills Pending.
Batch details are used to identify the movement of inventory in
Practice Exercise batches or lots. Although this is a requirement primarily of the
pharmaceutical industry, the same can be used by other industries
Make the following voucher entries:
thatmaintain or manufacture perishable goods. Many organisations
1. On 1-2-2010, you received an order from FirstCom Solutions for 25 also purchase in batches in order to monitor the result of the batch
Nos of HP - 27 Printer Cartridges to be delivered on 15-2-2010 @ Rs. purchased individually. Hence, Tally.ERP 9 has used the term
250 each. Order number FCS/9. You propose to deliver from On-Site, Batch/Lot.
allocate to Sales-Printer, Cost Centre Amar.
Batches/Lots are also often used to monitor the date of manufacture,
2. On 13-2-2010, received 22 Nos of HP - 27 Printer Cartridges @ Rs. date of receipt or the date of expected time when it cannot be
200 from Power Line Computers and stored in On-Site. The invoice further used (perished or expired). Tally.ERP 9 makes provisions to
PLC12 was also received. Credit period was 30 days. enter both the manufacturing date and the expiry date to take
decisions as required.
3. On 15-2-2010, National Traders delivered 20 Nos of HP - 27 Printer
Cartridges from On-Site toFirstCom Solutions against their Order In this section the following topics are discussed :
FCS/9.
‡ Activate Batch-wise Details and enter vouchers using them.
‡ Since you will raise the invoice later, give a new tracking
‡ Set Manufacturing Date & Expiry Date for Batches.
number as Ex1.
5.1. Activating Batch-wise Details
‡ The terms are Credit period of 45 days from the date of invoice.
The sale price is Rs. 250 each. No interest is to be charged. Batch-wise details are given for maintaining batch information
pertaining to stock items. The Man- ufacturing date and expiry date
4. On 17-2-2010, FirstCom Solutions returned 2 defective pcs of HP -
can also be set for batch wise details.
27 Printer Cartridges, track it against Ex1.
To activate Batchwise Details,
5. On 1-3-2010, National Traders raised the invoice for the 18 pcs of
goods retained by FirstCom Go to Gateway of Tally > press F11: Features (Inventory Features).
Solutions. Link the invoice with the delivery note. ‡ Set Maintain Batch-wise details and set Expiry Dates for Batches to
Yes.
‡ Display Sales Bills Pending on 28-2-2010. and view Profit & Loss
A/c on 28-2-2010 to view changes in Sales Bills to make. 5.2. Using Batchwise Details in Purchase Invoice
‡ Change the date to 2-3-2010 and check, are there any Sales Bills On 15-12-09, purchased Saridon - 250 nos from GetWell Pharmacy @
to Make 5.50 each with batch number ST/101 having Manufacturing date as
15-8-2009 and Expiry Date as 14-8-2010.
6. Prepare a Purchase invoice on 13-2-2010 and track it against the
receipt note dated 13-2-2010. Setup:
Tips : ‡ Create GetWell Pharmacy Ledger under Sundry Creditors
‡ Activate Rejection Notes in the F11: Features (Inventory features), ‡ Create the following Stock Item
if not activated.
„ Name: Saridon
„ Under: Medicines (create the group under primary) 3. Select Godown as Onsite
„ Category: Pain Killers (create the category under primary). 4. Select the Sales Ledger as Export Sales
„ Use expiry dates: Yes Go to Gateway of Tally > Stock Summary > Medicines
„ Rate of Duty: 5 ‡ Press F1: Detailed, you will find that the stock balance is 50 nos.
„ Retain all the other fields as default and accept the stock item Practice Exercise
creation screen.
1. On 28-12-09, raise another purchase invoice on GetWell Pharmacy
„ Return to the Gateway of Tally. with the following details
‡ During Voucher entry, press F12: Purchase Invoice Configuration ‡ Batch No. : ST/102
and set Honor Expiry Dates usage for Batches to YES
‡ Quantity : 300 nos
Step 1: Create Purchase Voucher
‡ Rate : Rs. 6 per nos
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
‡ Godown : On-site
1. Enter the item as per the transaction details.
‡ Manufacture date : 15-8-09
2. After you enter Saridon, an Item Allocation screen will appears,
‡ Expiry date : 31-12-09
‡ Enter the batch no. as ST/101 having manufacturing date as 15-8-
09 and Expiry Date as 14-8-10. ‡ Purchase Ledger : Purchases
3. Select Onsite in Godown field. The Batch details appears as ‡ Total Invoice Value : Rs. 1,800
shown below :
2. On 1-1-10, make a Cash Sales Invoice for Saridon - 50 nos from
4. Allocate it to Purchase account (not project purchases). Purchase batch ST101 and 200 nos from batchST102 @ Rs. 7.50 each.
invoice number NM. Credit period 60 days.
‡ You may not be able to display the batch ST/102, use backspace key
5. Press Enter and accept the voucher. and go back to the invoice screen and change the invoice date to 31-
12-2009.
5.3. Using Batchwise Details in Sales Invoice
Tally.ERP 9 displays the batch ST/102 as shown below :
On 27-12-09 , raise a Cash Sales Invoice for 200 nos of Saridon @ Rs.
7.50 from the above Tally.ERP 9 does not display batch ST/102 when we make the entry
on 1-1-2010 because the expiry date ofST/102 was 31-12-2009. But
Batch No.ST/101. when we changed the entry date to 31-12-2009 the batch is
displayed! This is because the option Honor Expiry Dates usage for
Setup : Batches is set to Yes in the F12: Configuration.
‡ Create Cash Ledger under Cash-in-Hand group Additional Cost Details in Tally.ERP9
‡ Activate Cost Centre for Export Saes Ledger The cost of an item is the rate at which the item is purchased.
However, there are other expenses likePacking charges, Freight
Step 1: Create Sales Voucher
charges, Cartage incurred, etc. which add to the cost of purchasing
Go to Gateway of Tally > Accounting Vouchers > F8: Sales the item. Thus, the additional cost details are required to be added to
the actual cost of purchase.
1. Enter the item as per the transaction details.
Let us now see how Tally.ERP 9 handles this requirement.
2. Select the Batch as ST/101
6.1. Activating Additional Cost Details ‡ Godown: On-Site
Batch-wise details are given for maintaining batch information ‡ Quantity: 100 nos
pertaining to stock items. TheManufacturing date and expiry date
can also be set for batch wise details. ‡ Rate: Rs. 20 each
To activate Batchwise Details, 8. Press Enter till you reach the additional cost details screen
Go to Gateway of Tally > press F11: Features (Inventory Features). 9. Select Packing Charges on Purchases and type Rs. 110 (The total
packing charges of Rs.
‡ Set Maintain Batch-wise details and set Expiry Dates for Batches to
Yes. 290 is incurred for both items).
6.2. Creating Purchase Voucher with Additional Cost Details 10.Now select the ledger Cartage Charges and type Rs. 90 (The total
cartage charges of Rs. 210 is incurred for both items).
Setup :
The Additional Cost Details screen appears as shown below :
‡ Create a ledger – Stationery House under Sundry Creditors with
only the bill-wise details set toYes. 11.Press Enter, Tally.ERP 9 prompts for the tracking number details
Name of Item Under Category Units Maintain in The Inventory Allocations for: Purchases appears as shown below :
Batches
13.Select the Item Stapler Pins in the Item Allocation screen and
Stapler Primary Not Applicable Nos No
‡ Order number: Not Applicable
Stapler Pins Primary Not Applicable Nos No
‡ Godown: On-Site
‡ Create a new group Expenses on Purchases under the default group
‡ Quantity: 200 nos
Purchase Accounts and select NotApplicable for Method to Allocate
when used in Purchase Invoice. ‡ Rate: Rs. 25 each
‡ Create the following ledgers under the newly created group ‡ Press Enter till you reach the additional cost details screen.
Expenses on Purchases with the optionInventory Values are Affected
and Maintain Cost centres set to No. 14.Select Packing Charges on Purchases and enter the balance
amount of Rs. 180.
„ Packing Charges on Purchases
15.Select the ledger Cartage Charges and enter the balance amount
„ Cartage Charges of Rs. 120.
Step 1:Create Purchase Voucher 16.Press Enter till you reach the narration field.
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase The completed Purchase voucher appears as shown below:
1. Press Ctrl+V for Voucher Mode You will notice an additional line displaying the actual value of the
item. The item value appearing here will also be appearing in the
2. Date: 1-3-2010
stock reports.
3. Credit Stationery House: Rs. 7,500
17.Press Y or Enter to accept the screen and return to the Gateway of
4. Debit Purchases: Rs. 7,500 and press Enter Tally.
5. Tally.ERP 9 prompts for the Item details (as Inventory values are Display Stock Summary Report
affected is set to Yes)
Go to Gateway of Tally > Stock Summary
6. Select item Stapler and press Enter
‡ Highlight the item Stapler, you will find closing balance of 100 nos
7. In the Item allocation screen @ Rs. 22 each worth
Display Stock Voucher Report ‡ Similarly, select the option Appropriate by Qty in the Purchase
Accounts group also
Cross verify the stock details of stock summary with the Stock
Vouchers report as shown below : Go toGateway of Tally > Display > Display Stock Voucher Report
Inventory Books > Stock Item
Go to Gateway of Tally > Display > Inventory Books > Stock Item
‡ Select Stapler and press Enter till you reach a report displaying the
list of vouchers as shown below:
6.3. Creating Purchase Invoice with Additional Cost Details ‡ Select Stapler
Setup: ‡ Press Enter till you reach the stock voucher screen
‡ Ensure that Enter Purchases in Invoice Format in F11: Features ‡ Select the purchase voucher dated 3-3-2010 and re-accept the
(Accounting Fea- tures) is setto Yes voucher for the additional cost to take effect
Step 1:Create Purchase Invoice The Stock Vouchers with additional cost details for Stapler appears as
shown below :
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
‡ Use F4: Item button and select Stapler Pins
1. Select As Invoice
The Stock Vouchers with additional cost details for Stapler Pins
2. Change the date to 3-3-2010 and make the entry as per the appears as shown below:
purchase voucher details dated 1-
6.5. Additional Costs incurred after Purchases
3-2010.
Setup :
The purchase invoice appears as shown below:
‡ Create the following stock item
3. Press Y or Enter to accept the screen and return to the Gateway of
Tally Advanced Inventory in Tally.ERP 9
Display Stock Voucher Report Name of Item Under Category Units Maintain in
Batches Track Date ofMfg Useexpiry dates
Let us see the rate that is displayed in the stock item voucher report.
Go toGateway of Tally > Display > Inventory Books > Stock Item > Batch Additional Cost Item Primary Not
‡ Press Enter till you reach the Stock Vouchers screen as shown ‡ Alter the ledger Packing Charges on Purchases and set the option
below: Inventory Values are Affected to Yes.
In the entry dated 1-3-2010, we gave the additional cost details for On 1-3-10, make a purchase entry for 10 nos of Batch Additional Cost
each item (Stapler and Stapler Pins).This additional cost was Item (Batch/ 001) @ Rs.
calculated and added to the cost of the item. The additional costs are
100 from Stationery House.
not added to the cost of the items, when the entry is made in the
invoice format. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases
To appropriate the additional costs to purchase invoice of 3-3-2010, 1. Select Party as Stationery House
Go toGateway of Tally > Accounts Info. > Groups > Single > Alter
2. Select Stock item as Batch Additional Cost Item
‡ Select Expenses on Purchases
3. Select Godown as Onsite and select the Batch details as shown
The screen appears as shown below: below
‡ Select Appropriate by Qty from the Allocation Methods list. 4. Enter the Qty and Rate and allocate it to Purchases ledger.
5. Enter the required bill-wise details and accept the entry. 1. Enter a purchase invoice on 15-10-2009 for 10 Nos of Item One @
Rs. 100 each and 20 nos of ItemTwo - @ Rs. 200 each from the
Step 2: Create Purchase Invoice Supplier.
On 2-3-10, make a purchase entry for 20 nos of Batch Additional Cost Setup :
Item (Batch/ 002) @ Rs. 200 from Stationery House.
‡ Create two stock items Item One and Item Two with the unit of
Go to Gateway of Tally > Accounting Vouchers > F9: Purchases measure as nos.
1. Select Party as Stationery House ‡ Create the ledgers - Supplier (Sundry Creditors), Delivery Charges
on Purchases and
2. Select Stock item as Batch Additional Cost Item
Tax on Purchases (under Purchase Accounts).
3. Select Godown as Onsite and select the Batch details as shown
below ‡ Alter the group Purchase Accounts and select Appropriate by
Value as the method of appropriation.
Step 3 : Create Payment Voucher
7. Bill of Material (BoM) in Tally.ERP9
On 3-3-10, make a Bank Payment entry for payment of Rs. 900 (Rs.
300 for Batch/001 and A Bill is termed as an authenticated document for the materials
which are taken out from the stock either forsale or for transfer to
Rs. 600 for Batch/002) towards Packing charges on Purchases.
other godowns or for manufacturing, etc. In order to avoid this con-
Go to Gateway of Tally > Accounting Vouchers > F5: Payment tinuous process of issuing a bill at every stage, a system has been
evolved wherein the items with their quantity details can be allotted
1. Debit the ledger Packing Charges on Purchases. towards manufacturing a certain product or by-product. This
facilitates the immediate reduction in stock of the item
2. Select the item Batch Additional Cost Item
automatically. This process of listing the items that make up another
3. In Item Allocations for screen, item is termed as theBill of Materials (BoM).
‡ Select Batch/001 and enter 300 in Amount field 7.1. Creating Bill of Materials
‡ Select Batch/002 and enter 600 in Amount field. The screen You can create a Bill of Material (BoM) for any stock item. Typically, a
appears as shown below : BoM can be created at the time ofmanufacturing/ assembling the
item. You may specify a BoM at the time of creating a stock item or
altering its master.
4. Credit Bank Account for the same amount (Rs. 900) and accept the National Traders is engaged also in the business of assembling and
entry. manufacturing Televisions.
‡ Press F12: Range and specify details as shown below : Ensure that you are in National Traders,
‡ Accept the Range of information to return to the Stock Summary Go to Gateway of Tally > F12: Configure > Accts / Inventory Info.
screen.
‡ set Allow Component list details (Bill of Materials) to Yes
‡ The report now displays only one stock item Batch Additional Cost
Item, press Shift + Enter to view the batch details. Step 1 : Creating Bill of Materials
The batch details will be displayed as shown below : ‡ Create the following stock item (Final Goods) :
Sound card Television Flatron500 Nos On the same day, 5 Nos of Television Flatoron is manufactured in On
Site godown. Additional expenses of Rs. 3,000 and Rs. 2,000 was
Aerial Television Flatron300 Nos incurred towards Wages and Power respectively.
The Bill of Material component screen of Television Flatoron appears Step 1: Create Purchase Invoice
as shown below :
Go to Gateway of Tally > Inventory Vouchers > F9: Purchase
‡ Accept the above settings for the item Television Flatoron.
1. Select the Party as Star Electronics
The purpose of creating a bill of material is to enable the
consumption of the materials in the ratio specified,when the product 2. Allocate to Purchases Account
is manufactured. Tally.ERP 9 allows us to use a Manufacturing Journal
3. Select the items with the quantity and standard rates as given in
to enter the goods manufactured with the bill of materials.
the table above
7.2. Creating a Manufacturing Journal
4. Select the Godown as Onsite
To create a new Manufacturing Journal,
5. Accept the entry
Go to Gateway of Tally > Accounts Info. > Voucher Type > Create
‡ Press Enter on Home Electronics 8.1. Activating Price Lists and Defining Price Levels
You will find that the closing quantity, rate and value details for the Setup:
stock item - Television Flatoron.
Go to Gateway of Tally > F11: Features (Inventory Features)
Practice Exercise
‡ Set Use Multiple Price Levels for Invoicing to Yes. (This will appear
Load Indus Enterprises, make the following entries only if the feature AllowInvoicing is set to Ye.)
1. Create a Manufacturing Journal for manufacturing 1 Nos of ‡ Tally.ERP 9 takes you to the Company Price Levels screen, type
Computer from the following components : different price levels for NationalTraders as
CPU 1 Nos ‡ Accept the screen and return to the Gateway of Tally.
Keyboard 1 Nos Go to Gateway of Tally > Inventory Info. > Price List
Mouse 1 Nos 1. Select the Group Components (you will notice that all the items
grouped under Components
Setup :
appear automatically).
‡ Create a BOM for stock item Computer which requires the
following items. 2. Select Retail Sales as Price Level and specify 1-1-2010 in the
Applicable From field
„ Hard Disk Drive - 1 Nos
3. For USB Pen Drives 100MB give the details as follows:
„ Floppy Disk Drive - 1 Nos
‡ Less than - 10 nos - Rs.1,250/- and no discount
„ CPU - 1 Nos
‡ From 10 nos and Less than 25 nos - Rs.1,250/- and 5% discount
„ Monitor - 1 Nos
‡ From 25 nos onwards - Rs.1,250/- and 7.5% discount
„ Keyboard - 1 Nos
4. Specify the price details for other items as it appears in the Price
„ Mouse - 1 Nos
List screen below :
‡ Store them in the Bangalore godown
5. Accept the Price List Detail
8. Price Levels and Price Lists in Tally.ERP9
6. Similarly, create another Retail Sales Price List as on 3-1-2010 with
the following rates:
‡ USB Pen Drives 100MB - Rs.1,500 10.Press Enter to skip the discount field
Wireless Keyboard - Rs.500 11.Allocate to Sales- Components and select Amar as Cost Centre.
‡ Wireless Mouse - Rs. 300 12.Give the bill-wise details as required and accept the entry
7. The Quantity and Discount details are similar to the price list Step 2: Create Sales Invoice
screen given previously. Ensure the price details are as shown below :
On 5-1-10 raise a sales Invoice on Beltron Computers for the
8. Press Y or Enter to accept the Price List. following Items :
On 2-1-10 raise a sales Invoice on Beltron Computers for the Sound Card 10 Nos
following Items :
The Invoice amounted to Rs. 41,500.
Name of the Item Qty
1. Similar to invoice dated 2-1-10 select the item USB Pen Drives
USB Pen Drives 100MB 30 Nos 100MB
The Invoice amounted to Rs. 35,687.50 3. Rate as Rs. 1,500 and discount of 10% appears automatically (as
we have defined it in the Price List dated 3-1-10)
Setup:
4. Ignore the negative stock and allocate to Sales- Components.
‡ Create a New customer called Beltron Computers with the Select Amar as Cost Centre.
following details.
5. Accept the quantity details of the USB Pen Drives 100MB stock
Pricing Level Applicable Maintain balances bill-by-bill Cost item
Centres are applicable ActivateInterest Calculation
6. Select another item, Sound Card and give the quantity as 10 nos
Retail Sales Yes No No
7. Specify Rs.100 as the Rate.
‡ In the F11: Features (Inventory Features) activate Separate discount
column on invoices. 8. Tally.ERP 9 prompts for the discount information. Let us leave it
blank (you already know that you can specify as required or simply
Step 1: Create Sales Invoice leave it blank).
1. On 2-1-10 raise a sales Invoice on Beltron Computers 9. Allocate to Sales- Components ledger
2. Select the stock item USB Pen Drives 100MB from On-site 10.Give the bill-wise details as required.
8. Type the quantity as 10 nos (here in this case, the cursor prompts 9.1. Stock Valuation Method
in the Rate field since price lists is not defined for this item)
The Stock Valuation / Costing Methods provided in Tally.ERP 9 are:
9. Specify Rs. 100 as Rate
‡ Average Cost ‡ Click Auto Column (Alt + N) button and select Stock Valuation
Methods.
‡ At Zero Cost
The closing balance of stock as per Default and FIFO stock valuation
‡ First In First Out (FIFO) methods are shown below :
‡ Last Purchase Cost Tally.ERP 9 displays the closing stock of 6 nos of HP - 27 Printer
Cartridges as per different stock valuation methods. Since there are
‡ LIFO Annual (Last In First Out Annual)
11 columns in the report the same is displayed in six screens as
‡ LIFO Perpetual (Last In First Out Perpetual) shown below:
‡ Monthly Avg. Cost We have purchased a total of 15 nos for Rs. 12750. The average now
is Rs. 12,750 / 15 = Rs. 850 with a closing balance of 6 nos x 850 = Rs.
‡ Standard Cost 5,100 (Average cost method of valuation)
In addition, Tally.ERP 9 provides the following Market Valuation You can decide which method of stock valuation is most appropriate
Methods: for your business and accordingly define that in the item master. FIFO
(First In First Out) and Average Cost are the most popular stock
‡ At Zero Price
valuation methods used in today’s business.
‡ Average price
10. Zero Value Entries in Voucher in Tally.ERP9
‡ Last Sale Price
Zero valued entries in vouchers are required when, for example: you
‡ Std. Price need to despatch inventory as free samples or free replacements,
etc.
Depending on the Market Valuation Method defined in the stock
item master, Tally.ERP 9 displays therate/ price automatically at the You can make an entry of issue with the required quantity details but
time of Invoice entry. The Market Valuation Method is set as Average enter the value as zero. This is done so that the entry is reflected only
Priceby default. The Average Price displays the average of all the in the Inventory books and not in the Accounting books.
sales prices given in the previous sales entries, as the selling rate/
10.1. Creating Zero Value Entries
price while the current sales entry is being made.
On 28-02-10, make a Sales invoice on Prism fabrication for 1 Nos of
Let us now examine the result of the different stock valuation
Television Flatoron withoutvalue.
methods
Setup:
9.2. Display Stock Summery
In National Traders,
Setup :
‡ Activate the feature Allow Zero valued entries in the F11:
‡ Go to Gateway of Tally > F12: Configure > Accts / Inventory Info.
Features (Inventory Fea- tures) and accept the other settings.
„ Set Allow Advanced Entries in Masters in Inventory Masters to Yes.
‡ Create a ledger account Samples under the group Sales
‡ Go to Gateway of Tally > Inventory Info. > Stock Item > Alter, Accounts and set Cost Centres are applicable to No and Inventory
values are affected to Yes.
„ Select HP - 27 Printer Cartridges, you will find that the details of
Costing Method and Market Valuation Method under Behaviour Create Sales Invoice
„ Select Average Cost and Average price respectively 1. Raise a sales invoice dated 28-02-10 on Prism fabrication for 1
Television Flatoron with no value.
„ Accept the master information.
2. Price levels is to be set as Not applicable
Go to Gateway of Tally > Stock Summary,
3. Allocate it to Samples
‡ Select Printers Stock Group
After passing the above zero valued entries, if you display the Sales
‡ Press F2: Period and change the period from 1-07-2009 to 31-07- Register you may not find this entry. Buthowever, if you display the
2009. Television Flatoron Stock Item, you will find the quantity sold.
11. Inventory Ageing Analysis in Tally.ERP9 ‡ Go to F11: Features (Inventory Features) and set Use Different
Actual & Billed Qty to Yes.
A very important function of Working Capital Management is the
monitoring of stocks. Money locked up in stocks can adversely affect 12.1. Using Different Actual and
the liquidity of a company. Every company strives or should strive to
reduce stock levels to the optimum. Most businesses would prefer to Go to Gateway of Tally > Accounting Vouchers > F8: Sales. You will
dispose off older stocks as they might deteriorate with time, go out notice that the Quantities column is divided into two columns, viz.
of fashion, or simply get forgotten. Actual and Billed
Tally.ERP 9's Stock Ageing analysis enables you to know the age of On 3-3-2010, make a purchase invoice from Parvathi Stockers for the
stocks in hand according to when they were received and their following items :
purchase value.
Name of the Item Actual Qty Billed Qty Rate
11.1. View Inventory Ageing Reports
(in Rs.)
Go to Gateway of Tally > Display > Inventory Books > Ageing Analysis
Rice 100 Kgs 90 Kgs 10
‡ Select Medicines
Wheat 50 Kgs 50 Kgs 100
‡ Press Enter and change the date to 3-3-2010
Setup :
‡ Saridon with batch number ST-102 and expiry date is displayed
‡ Create a new stock item as Rice with the following details :
‡ Click on the button Expired Batches to view only those items
„ Group it under stock group Foodstuffs.
which have expired (The button All Batches appears when the
expired batches are on display) „ Stock category - Not Applicable
‡ Press the button Hide Amounts, which toggles with Show „ Unit of Measure - kgs (kilos) with decimal places - 3 (create if not
Amounts to view the report with or without values present).
‡ Set ageing style as By Expiry Date and the screen appears „ Accept the master creation without any opening balance and return
as shown below : to the Gateway of
You will find that the Ageing Periods are displayed as <45 days, 45-90 Tally.
days, 90-180 days and >180days. These are the ageing period that
Tally.ERP 9 displays by default. However, you change theageing Step 1 : Create Purchase Invoice
period by using F6: Ageing Periods.
1. Enter a Purchase invoice on 3-3-2010 on Parvathi stockers.
Experiment by choosing different ageing styles and observe the
2. Price level - Not Applicable
changes in the report.
3. Select Rice under Name of Item
Practice Exercise
4. Order number - Not Applicable
1. Select By Mfg. Date as Ageing Style and view the report as on 31-
12-2009. 5. Select the godown as Onsite
12. Different Actual and Billed Quantity in Voucher in Tally.ERP9 6. Type Actual Quantity as 100 kgs and Billed Quantity as 90 kgs
The need for different actual and billed quantities may arise in 7. Specify the Rate as Rs. 10 and the value appears as Rs. 900 (billed
several instances. For example if an extrainventory is sent to cover up quantity * rate). The screen appears as shown below :
for any stock that reaches in a damaged condition or Inventory sent
as extrasamples or the Stock is despatched to the customer as 8. Allocate to Purchases ledger and press Enter.
quantity discount.
‡ Select another item Wheat and enter the following details
Setup:
‡ Tracking number and Order number - Not Applicable
Ensure that you are in the Gateway of Tally of National Traders.
‡ Select Godown as Onsite
‡ Type Actual and Billed quantity - 50 bags
9. Press Enter and accept the purchase invoice with the default bill-
wise details.The Purchase invoice amounts to Rs. 5,900 (Rice - Rs. 900
and Wheat - Rs. 5,000).
Tally.ERP 9 displays 100 kgs of Rice stock item because this is the
quantity that we have actually received from the party. In case of
Wheat the quantity appears as 150 kgs.
Go to Gateway of Tally > Display > Account Books > Purchase Register
„ Press Enter.
‡ Press F12: Configure and activate the option Show Inventory Details
also
The inventory details display 90 kgs for the stock item Rice, because
this is the quantity that the party hasbilled us for. (We have received
100 kgs of Rice i.e, the actual quantity. We will be making the
payment for only 90 kgs i.e., the billed quantity). Therefore, the
actual quantity affects the inventory books while the billed quantity
reflects in the accounting books.