What is Inventory Management?

Inventory management is one of the key factors which will define the success of the business. Inventory is money sitting around in another form and it holds huge working capital. Any inefficiency in managing inventory will put your business at a disadvantage.

Inventory management is all about striking the balance between overstocking and under-stocking. Overstocking will lead to cash flow blockage and additional cost for managing excess stock. On the flip side, under-stocking leads to loss of sale due to non-availability of stock at the right time.

Thus, it’s all about maintaining the right level inventories at the right time and keeping the inventory handling cost at low.

What is stock group?

In Inventory, the stock groups are similar to groups in accounting master. In Tally, the stock group is used to help in the classification of stock items according to their behavior. Under stock groups, the stocks can be grouped according to their product type, characteristics, and brand.

How to create stock group?

  • Tally ERP 9
  • Gateway of Tally ——> Inventory Info. ——> Stock group —–> Create

  • Tally Prime
  • Gateway of Tally ——> Create ——> Stock group

What is stock Category?

Stock Category offers a parallel classification of stock items. The advantage of Categorizing items is that you can classify the stock items (based on functionality) together – across different stock groups which enables you to obtain reports on alternatives or substitutes for a stock item.

How to create stock Category?

  • Tally ERP 9
  • Gateway of Tally ——> Inventory Info. ——> Stock Category —–> Create

  • Tally Prime
  • Gateway of Tally ——> Create ——> Stock Category

What is Godown?

Tally Prime summarizes the details of stock items available in each Godown in the Godown/Location Summary report. If you have created location in a hierarchy, the report gives you a consolidated view of the stock available.

How to create stock godown?

  • Tally ERP 9
  • Gateway of Tally ——> Inventory Info. ——> Godown (location) —–> Create

  • Tally Prime
  • Gateway of Tally ——> Create ——> Godown (location)

Units of Measure

Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. Examples of simple units are: nos., meters, kilograms, pieces etc.

How to create unit of measure?

  • Tally ERP 9
  • Gateway of Tally —-> Inventory Info —-> Units of Measure —> Create

  • Tally Prime
  • Gateway of Tally ——> Create ——> Units of Measure

Compound Unit of Measure

A Compound Unit is a relation between 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.

How to Create stock item?

  • Tally ERP 9
  • Gateway of Tally ——> Inventory Info. ——> Stock Item —–> Create

  • Tally Prime
  • Gateway of Tally ——> Create ——> Stock Item

Note:- If you want to add Purchase and Sales Rate while creating stock item then
Press F12 While creating stock items
Provide Standard Buying and Selling Rates ——> Yes
Set Standard Rates—-> Yes

Opening Stock: –

Godown/Location
Stock GroupStock categoriesStock itemsVirarDadarPurchase PriceSales PriceValue
MobileJIOJio 5G7.004.004,000.005,000.0044,000.00
Jio 4G10.005.003,000.004,000.0045,000.00
MicromaxMicromax Canvas 219.0017.004,000.005,000.001,44,000.00
Micromax Galaxy25.0032.003,000.004,000.001,71,000.00
LaptopsDellDell inspiron 34938.002.0035,990.0045,000.003,59,900.00
Dell vostro 54017.003.0053,490.0060,000.005,34,900.00
AppleInspiron 85715.0014.0060,000.0065,000.0017,40,000.00
MacBook air28.0030.0070,000.0074,000.0040,60,000.00
Pen driveSandiskKioxia pendrive8.006.00900.00800.0012,600.00
EO cyclops pen drive7.003.00950.001,000.009,500.00
HPHp USB 2.0 utility18.0015.001,000.003,000.0033,000.00
Hp OTG x 305m21.0022.002,000.004,000.0086,000.00
SonySony 1231 yellow15.0014.002,000.001,000.0058,000.00
Sony 42 minnie mouse18.0012.001,200.001,900.0036,000.00
School bagsDehoraDehora amora5.008.004,000.005,000.0052,000.00
Dehora akeria4.002.003,000.004,000.0018,000.00
HiflyHifly BCKB00618.0015.005,800.008,200.001,91,400.00
Hifly BCKB00520.0030.006,250.006,850.003,12,500.00
Total79,07,800.00

Display Reports: –

Display Stock Summary

  • Gateway of Tally ——> Stock Summary

Display Item wise Stock Report

  • Gateway of Tally ——-> Display > Inventory Book ——-> Stock Item

Display Group wise Stock Report

  • Gateway of Tally ——-> Display ——–> Inventory Book ——-> Group Summary

Display Category wise Stock Report

  • Gateway of Tally ——-> Display ——–> Inventory Book ——-> Categories

Display Godown wise Stock Report

  • Gateway of Tally ——> Display ——> Inventory Book ——> Godown

 Maintain the following stock and show Godown and stock group report.

Product  Name Quantity  (Pcs)  Per Unit Rate Value
  Godown  Std. Cost
Ruler Virar  Bandra  Purchase Price  Sales Price
          Plastic Ruler 498.00    500.00         2.00          3.00    1,996.00
          Steel Ruler 206.00    360.00      12.00        14.50    6,792.00
Pencil     
          Natraj Pencil 400.00    800.00         1.50          2.50    1,800.00
          Star Pencil 900.00 1,100.00         1.00          1.50    2,000.00
Note Books     
          100 Pages Book 500.00    250.00         6.50          8.00    4,875.00
          200 Pages Book 146.00    200.00      12.50        15.50    4,325.00
          400 Pages Book   75.00       50.00      22.00        26.50    2,750.00
School Bag     
          Small Bag   15.00    250.00      315.00    3,750.00
          Large Bag      6.00         5.00    380.00      475.00    4,180.00
Pen     
          Add Gel     
   A 240 Smooth Gel 5.2 100.00       25.00      25.00        29.00    3,125.00
            A 340 0.5 Gel 150.00    175.00      30.00        34.50    9,750.00
         Rotomac     
                Fighter 200.00    425.00      12.00        16.00    7,500.00
                Striker   25.00    100.00      45.00        56.00    5,625.00
         Flair     
                Elegance   10.00       15.00    125.00      180.00    3,125.00
                Designer   15.00       30.00    225.00      290.00 10,125.00
Total 71,718.00