This guide is part of my Tally inventory management series. In the first guide, I talked a lot about Tally inventory management including the features that made it outstanding.
In this article, I want to look at yet another Tally inventory feature that contributes to making inventory management in tally a lot easier.
What are Stock Items in Tally?
Stock items are the goods that your business has manufactured for sale or purchase for resale. It could also be the services that your business provides.
The stock item feature is very important in Tally ERP 9. You have to create a stock Item for each inventory item that you intend to account for.
Creating Stock Items
Creating stock items has a similar procedure as creating stock Groups and stock categories which have been explained in my previous tutorials.
You can create Stock items using the Single Stock items option as well as the Multiple Stock items Option.
Creating a Stock Item (Under Single Stock Item)
To create a single stock item:
- Whilst in the Gateway of Tally, Click Inventory Info.
- The Inventory Info. menu appears, click Stock Items
- Click Create Under the Single Stock Category Option.
Bellow is the screen that will appear when you click create under single stock item:
Creating a Stock Item (Under Multiple Stock Items)
To create multiple stock items, instead of choosing the create option under the single stock item, choose the create option under the multiple stock items. This way, Tally will give you the chance to create more than one stock item all at once.
The below screen will appear when you click the multiple stock Items option:
Now, after selecting the Create option either for single or multiple stock items, the information you need to provide include the following:
This is where you specify the name of the stock item. Say Samsung Galaxy S9, assuming we are dealing in mobile phones.
The Alias field is not required and it is only available under the single stock creation screen. You may use this field to assign numeric or alpha-numeric codes to the stock items with which you can refer to the stock items.
The under field will show the list of groups available. This gives you the option to select which stock group the item belongs. Say Samsung Phones.
Stock categories are similar to stock groups. In fact, there is no difference between these two features since they both exist to classify stock items according to certain features. So, it is safe to say that a stock category is an additional tool for grouping items in Tally.
For instance, we can group Samsung Galaxy S9 under a stock group named Samsung Phones, and under a stock category called Dual Sim Phones. However, you can select “Not Applicable” for this field if you don’t need any further classification of stock items.
This additional grouping feature in Tally is important as it makes it possible to classify stock items base on several characteristics. For instance, you can have reports generated for all Samsung Phones or Apple Phones. You can also have reports for all Dual Sim or all Single Sim phones for all brands.
This is where to specify the units of measurement for your stock items. By default, Not Applicable is selected for this field. But the Not Applicable option is used only for service items like consulting where quantities may not apply. If you select Not Applicable for physical stock items, you cannot enter quantities on the voucher screen.
Rate of Duty:
This option is available only under the single stock item creation screen. It is used for the calculation of excise duty or if duty is based on the item rate. During invoicing, whenever you select a stock item, the rate of duty entered here is displayed in the Invoice screen.
However, in F11 Inventory features, if Allow Invoicing is set to No then the Rate of Duty field will be invisible.
Here, you specify the details of the opening stock, if any, for the stock item as on the date of the beginning of books or accounting period.
- Specify the item Quantity in the Quantity field. Say 8 units.
- Specify the cost per unit of stock item in the Rate field. Say $779 per unit.
- In the Value field, Tally automatically calculates the value by multiplying the rate by the quantity. If you edit the value then Tally will automatically adjust the rate accordingly.
After specifying all the necessary details, hit Ctrl+A on your keyboard to finalize creating stock items.
Altering a Stock Item
You can edit or alter stock items both under single and multiple modes. To do so, follow below steps:
- Go to Gateway of Tally → Inventory Info. → Stock Items → Alter
- Select the Stock item you wish to edit from the list of items to switch into edit mode.
- Now make the necessary changes and hit Ctrl+A to save changes.
This brings us to the end of this tutorial. Thank you.