This article is for beginners of Tally software.

Readers who have mailed me that they want to learn Tally from the starting can find this post helpful. I have earlier posted getting started in Tally. which has rich list of resources from where anybody can start learning Tally. Now is the next step forward the first lesson in Tally. Before that let me give a brief idea of what we do in Tally and how we use this software. This First part of three step process. How we work in Tally. As we all know Tally is an accounting software, basic activity in Tally is to record our transactions. But before recording we have to do some master creations. After that we can enter transactions using those masters. These masters are ledgers , items, units and groups etc. After that we can see the reports on the basis of vouchers entered. So the basic tally activity can be divided into three parts viz. Creation of masters, Voucher entry and Viewing Reports. Creation of Masters The first step even before learning creation of masters is creation of Company. To start working in Tally we have to create a company. You can learn step by step how to create company in Tally.ERP 9 from this blog post. For Tally 7.2 guidelines on how to create company can be found on this article with screen shots. One Short video is also available which tries to teach How to create a company. Now we have to create masters. The ledgers, the groups if needed to define particular type of ledger to group them , the items if we are keeping inventory and the Units etc Here is the list of tutorials to create these masters. How to create a ledger in Tally.7.2 How to create a Ledger ( Tallysolutions tutorial), Duties and Taxes Ledger , Sales/Purchase ledger , Income/Expense Ledger How to create Item How to create a Stock Group ( Where you can classify different Items)
When you want to make voucher entries in tally, you must create you ledger first time new account record in tally because without making ledger you can not pass the voucher entries in tally So you have to learn how to make or create ledger. This is very simple. Two ledger automatically, other ledger you have to create. For this you will learn following list and under head of group. ( I) Automatic created ledger in tally Cash and profit and loss account is two automatic ledger created in tally Do not make them but if there is opening balance in cash account the go to Account info ledger and the click alter then put the opening balance in cash account and accept (II) Ledger Creation by you S.No. Name of Account Under head of Group 1. Capital Account Capital Account 2. Name of your creditors Sundry Creditors 3. Name of your Debtors Sundry Debtors 4. Name of Expenses Direct Expenses or Indirect Exp. 5. according to the nature of expenses 6. Name of Income Indirect Income 7. Name of Bank Bank Account 8. Name of Current Asset Current Assets i) stock in hand ii) deposits iii) show short term investment 9. Name of Fixed Asset Fixed Asset 10. Name of Current Liabilities Current Liabilities 11. Name of Fixed Liabilities Fixed liabilities

12. Name of Loss Direct Expenses or Indirect Exp. 13. Bad Debts Indirect Exp. 14. Provision for Bad Debts Current Liabilities 15. Outstanding Expenses Current Liabilities 16. Advance Income Current Liabilities 17. Outstanding Income Current Assets 18. Sale Tax / VAT Duties and Taxes 19. Excise Duty / CENVAT Duties and Taxes 20. Drawing Capital 21. Purchase Purchase account 22. Sale Sale Account

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Creating a Stock Item

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.

Two Modes of Stock Item Creation:

1. 2. Normal Mode Advance Configuration Mode.

Creation of Stock item in Normal Mode:

To create a Stock Item, Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under Single Stock Item) Stock Item creation is displayed as shown:

A brief description of each field in the Stock Item Creation screen follows: Name Specify the name of the Stock Item. Alias Specify the Alias name of Stock Item (if required). Under This field will show the List of Groups. Here you can select the Stock Group to which the Stock Item belongs. By default, Primary Stock Group appears in this field. Note: You can create a new stock Group by pressing ALT+C at this field. Units This field will show the Unit List. Here you can select the Unit of measurement applicable for the stock item. By default, Not Applicable appears in this field. Note: You can create a new Unit by pressing ALT+C at this field. Rate of duty Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of excise duty or if duty is based on item rate. During Invoicing, whenever you select a Stock Item, the Rate of duty entered here is displayed in the Invoice creation screen.

Note: In F11 Inventory features, if Allow Invoicing is set to No then Rate of Duty field will not be visible. Tariff Classification Specify the Tariff Classification for the item, if applicable. Tariff Classification can be created or used when Excise features is activated for the company. Opening Balance Specify the details of Opening Stock, if any, for the Stock Item as on the date of Beginning of Books. 1. 2. 3. In the Quantity Field, specify the stock item Quantity, say 5 Nos. In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece. In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field accordingly.

Note: If Unit field is Not Applicable then the cursor will move from Quantity and Rate Field.

Buttons specific to Single Stock item creation: Buttons G: Groups I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+G CTRL+I CTRL+U CTRL+O CTRL+V Description and Use Allows you to Create a Stock Group. Allows you to Create a Stock Item. Allows you to Create a Unit of Measure. Allows you to Create a Godown. Allows you to Create a Voucher Types

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

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Creating a Stock item in Advance Mode

Advance mode means enabling advance configuration and Features for stock item master in F12:Configure and F11:Features. Shown below are the advance configuration parameters for stock item master under F12:Configure (Master Configuration) :

Shown below are the advance Features for stock items in F11:Features:

Note: You can configure the entire setup according to your requirements. According to the configuration in F12 and F11, stock item master fields will get added and removed.

Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)

A brief description of each additional field in Stock Item Creation screen is given below.

Part No.
This Part number field gets enabled only after enabling Use Part Number for stock items in Inventory Master Configuration. This field is used to enter the Vendors catalogue number. You can also optionally print it in reports/invoices.

Description
The Description field gets enabled only after enabling Use Description for Stock Items in Inventory Master Configuration. This field is used to enter the description of the Stock Item as it is required to be printed in Quotations, Delivery Challan/Invoice.

Remarks
This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory Master configuration. This field is used to enter Remarks for the Stock Item (for internal use only). Any additional details about the Item can be entered here.

Set/Modify Default Ledgers for Invoicing?

This option gets enabled only after enabling Specify Default Ledger Allocation for Invoicing in Inventory Master Configuration. Once you enable this option, a screen will be displayed for selecting the default ledger allocation for sales and purchase for the stock item.

Note: This option is useful only in case of Invoice entry through Voucher Class.

Category

This Category field gets enabled only after enabling Maintain Stock Categories in Inventory Master Features. This field will show the List of Categories. Here you can select the Stock Category under which the stock Item belongs. By default, Not Applicable is displayed in this field. Note: You can create a new stock category by pressing ALT+C at this field.

Alternate Units
Alternative Units are individual units similar to simple units, which can be used instead of another simple unit during Invoicing / voucher entry and are also useful in displaying the stock reports alternatively in another simple unit. This is particularly useful when you need to handle different units at different times. This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in Inventory Master Configuration.

Example:
Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of wheat flour can be measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple units, which can be alternatively used.

Maintain in Batches?
This option gets enabled only after enabling Maintain Batch wise Details in Inventory Master Features. If you want to maintain the batch information of Stock Items, set the option Maintain in Batches to Yes.

Track Date of Mfg?

This option is enabled only when Maintain in Batches? is set to Yes. If you want to specify the manufacturing date for the item, set Track Date of Mfg. to Yes.

Use Expiry Dates

This option gets enabled only after enabling Set Expiry Dates for Batches under Maintain Batch Wise Details option in Inventory Features. If you want to specify the expiry date of the item, set Use expiry dates to Yes. This option is useful for stock items like medicines, Food items, etc.

Set Component BOM

This option gets enabled only after enabling Allow Component List Details (Bills of Material) in Inventory Master Configuration. Refer to Bills of Material for more details.

Set Standard Rates

This option gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory Master Configuration. This option helps you specify standard purchase rate and standard sales rates for the item. The standards are effective from the specified dates and they continue to be used at these rates until the next date, where the standard rate changes. Note: Standard Rates can also be used for valuation of closing stock.

Behaviour Group
Once you enable Allow Advanced Entries in Masters Behaviour Group option will be enabled. Options available under Behaviour Group are:

Costing Method
This field will display the List of Costing Method for valuating the Stock Item.

Depending upon the stock item, you can select the costing method for valuating the Stock item. A Brief description about each Costing Method:

At Zero Cost:
Cost of an item is considered as zero. For example, for defective items that have no commercial value.

Avg.Cost:

Periodic system:
This is also known as Weighted Average Cost. The weighted average cost for the whole year is computed as below:

Monthly system:
In monthly average cost, weighted average cost is determined on a monthly basis instead of annual.

FIFO (First-in, First-Out):

Periodic System Under FIFO Periodic System, it is assumed that items purchased first are sold first under the current financial year (i.e., first lot from the opening stock of current year). Perpetual System Under FIFO Perpetual system, it is assumed that items purchased first are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of material received first in the period, while the cost of inventory is based upon the cost of material received last in the period.

Last Purchase cost

Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based upon the Last purchase rate.

LIFO (Last-in, First-Out)

Periodic system Under LIFO, it is assumed that items purchased last are sold first under the current financial year (i.e., first lot from the opening stock of current year)

Perpetual System Under LIFO Perpetual system, it is assumed that items purchased last are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of materials received last in the period, while the cost of inventory is based upon the cost of material received first in the period.

Standard Cost
Standard Cost is Standard Rates specified in the Inventory master. Cost of goods sold and Cost of inventory is based upon the Standard Rates.

Market Valuation Method

By using Market Valuation Method, you can determine the realisable worth of an Item. Unrealised Profit of an Item = Closing value as per Costing Method Closing value as per Market valuation method. Select the appropriate method applicable for the Item from the Valuation Methods List.

At Zero Price
Realisable price of an item is considered as zero. Example: For defective items that have no realisable value in the market.

Average Price
Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for the financial year.

Last Sale Price

Item is valued at Last Sale Price.

Standard Price
User specified rate applicable for the current date specified in Item master under Standard Rate is taken as the realizable rate. Ignore Diff. due to Physical Counting?

In Tally.ERP 9, you can record the physical stock as counted, using a physical stock voucher. If you wish to ignore the difference and continue with the stock as per books, set this option to Yes.

Ignore Negative Balances?

If you set this to Yes, Tally.ERP 9 ignores the item in the stock reports, in case it has a negative balance.

Treat all Sales as New Manufacture?

If you set this to Yes, whenever a sales entry is made, Tally.ERP 9 automatically updates the quantity and value in inward by treating the same entry as a New manufacture or purchase.

Treat all Purchases as Consumed?

If you set this to Yes, then, whenever a purchase entry is made, Tally.ERP 9 automatically updates the quantity and value in outward by treating the same entry as consumed.

Treat all Rejections inward as Scrap?

If you set this to Yes, then, whenever a rejection inward entry has been made [without tracking number], Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this case, you need not pass the credit note for reducing the value against rejection inward. This is used for defective items returned by the customer.

Allow use of expired Batches?

This option will get enabled once you enable the Use expiry dates under Maintain in Batches option. If you set this to Yes, during selection of batches in voucher entry, expiry batches also get included in the List of Active Batch.

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Displaying a Stock Item

You can display the existing Single Stock Item master and Multiple Stock Item masters, since it is only display you are not allowed to alter any information in display mode. To display a Single Stock Item,

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item)

Select the Stock Item you want to display from the List of Items. The Stock Item Display screen is displayed as shown.

Displaying a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to display the Stock Item under the selected group or All Items. The Multi Stock Item display screen is displayed as shown.

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Altering a Stock Item

This option allows you to view the existing single Stock Item master and Multiple Stock Item masters in edit mode, here you are allowed to change the various information. In the Alteration mode, you can change the item master settings. If a transaction is entered for that item, it is not possible to alter the units and delete the stock item. To Alter a Single Stock Item, Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Single Stock Item)

Select the Stock Item you want to alter from the List of Items. The Stock Item Alteration screen is displayed as shown.

Altering a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to alter the Stock Item under the selected group or All Items. The Multi Stock Item Alteration screen is displayed as shown.

Note: In the Multi Stock Item Alteration screen, you can create an Item by specifying item name after the last item, but you cannot delete an item.

Creating a Payment Voucher Entry with Class

Select Accounting voucher from Gateway of Tally. Press F5: Payment. You have to select a class or Not Applicable, if no class is desired for this entry. If Cost Centre Class has been set, it can also be selected.

The entry will be made as follows:

Cost Centre Class

The purpose of Cost Centre Classes is to facilitate predetermined allocation of cost centres to Ledger accounts (like expenses and incomes) during voucher entry.

How does it work?

The Automation of cost centre allocation involves creation of classes and predefining percentages for cost centres. Cost centre classes affect all voucher types. In voucher entry, depending upon the cost centre class, the allocation will be carried out in the background without the allocation screen being displayed at all.

More:
Set up required for Cost Centre Classes Voucher Entry with Cost Classes An explanation of Types of Calculation

Set up Required for Cost Centre Class

Before you select classes, it is advisable to create the cost centre structure. Define the Classes required and indicate which cost centres will be affected for each class. For example, you might have the following structure:

Divisions
1. 2. 3. Export Wholesale Retail

Departments
1. 2. Finance Marketing

Where Divisions and Departments are Cost Categories and the others are cost centres. Now, you would like to allocate sales to the following Cost Centre Classes: 1. 2. 3. Export Class - to allocate 100% of Export sales to the cost centre Export Wholesale Class - to allocate 100% of wholesale sales to the cost centre Wholesale Retail Class - to allocate 100% of retail sales to the cost centre Retail

You would also like to allocate all the sales (Export, Wholesale and Retail) to the Marketing Department. Along with the above mentioned, you would also like to allocate Marketing Expenses on a pro-rata in the following manner: 1. 2. Finance 50% Marketing 50%

With this structure, let us now set up the classes.

Set up Cost Centre Classes

Go to Gateway of Tally > select F11: F1: Accounting Features Set Use Pre-defined Cost Centre Allocations during Entry to Yes

(The other options can remain as previously set and are not discussed here.) Click on Enter, which will pop up Auto Cost Allocations-Cost Centre Classes creation screen. Type the Class name and select the Categories and the respective cost centres. Specify the percentage of allocation. After entry, your auto-cost allocation screen will be displayed as shown:

You have created the Cost Centre Classes as Export, Wholesale, Retail and Marketing Expenses. Divisions and Departments are cost categories. Export, Wholesale and Retail are cost centres under Divisions. Marketing and Finance are cost centres under Departments.

It is not necessary to have the same names for the classes and the cost centres, as shown in the above example.

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Inventory Information
Inventory Information
The Inventory Info menu, lists the inventory masters like Stock Group, Stock Items, Units of Measure of the company, using which you can create, alter and display the inventory master details. Go to Gateway of Tally > Inventory Info

Note: The Inventory Info menu is displayed in the Gateway of Tally, if you select Type of company as Maintain Accounts with Inventory in the Company Creation screen.

More : Inventory Configurations & Features (F11 & F12) Functions in Inventory Info. Menu Stock Groups Stock Categories

Stock Items Units of Measurement Bills of Materials Locations & Godowns Batches & Expiry Dates Inventory Voucher Types Inventory Voucher Class

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Inventory Configurations & Features (F11 & F12)

Configuration of Inventory By using F12:Configure, you can enable the required settings of Inventory Masters. By default, the settings pertaining to Inventory Masters are set to No. If you set them to Yes, the features will be enabled. Typically, they are additional fields that appear during Masters creation which enable you to obtain more information and detailed analyses. Refer Accts/Inv Info. Configuration for more details. Note: If you press F12 anywhere in the Menu, it will take you to the configuration menu.

Features of Inventory
By using F11:Features, you can enable the various settings under inventory features which determine the information to be entered during transaction entries. Refer Inventory Features for more details.

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Stock Group
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the classification of Stock Items. You can group Stock Items under different Stock Groups to reflect their classification based on some common features such as brand name, product type, quality, etc. Grouping enables you to locate Stock Items easily and report their details in statements.

Example:
Stock Item Brand A - 19 TFT Brand A - 17 CRT Brand B - 19 TFT Brand B - 17 CRT Sub Group Brand A Brand A Brand B Brand B Main Group Grade One Grade One Grade Two Grade Two

You now have ready details of Grade One and Grade Two products, duly classified. You can also view the sub group classification. Go to Gateway of Tally > Inventory Info. > Stock Groups

More: Creating a Stock Group Creating Multiple Stock Groups Displaying a Stock Group Altering a Stock Group

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Creating a Stock Group

Stock Items are classified into stock groups to reflect their classification based on some community. To create a Stock Group, Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group)

A brief description on each of the fields in the Stock Group Creation screen follows:

Name
Enter the name of the Stock Group to be created. For example, Grade One.

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

Under
Specify whether it is a primary group or a sub-group of another group, by selecting from the list. Press Alt+C to create a parent group, if you do not have it in the list.

Can quantities of items be ADDED?

This field pertains to information on measuring the units of the Stock Items that you would categorise 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. Note: You can always go back and reset this option after assessing the units of the items in the group.

Buttons specific to stock group creation:

Buttons C: Category I: Items U: Units O: Godown V: Vch Types Short Cut Keys CTRL+C CTRL+I CTRL+U CTRL+O CTRL+V Description & Use Allows you to Create a Stock Category. Allows you to Create a Stock Item. Allows you to Create a Unit of Measure. Allows you to Create a Godown Allows you to Create a Voucher Types

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

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Creating Multiple Stock Groups

Tally.ERP 9 allows you to create Stock Groups using single or multiple options. To create Multiple Stock Groups, Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)

Select the parent group under which you want the new groups to be created from the List of Groups. A brief description on each field in the Multi Stock Group Creation screen is given below:

Name of Stock Group

Enter the name of the Stock Group.

Under
If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter the parent group for each one of them.

Items are Addable? (Y/N)

You can select whether units of the Stock Items under Stock Group are to be added or not. Buttons specific to Multi Stock Group Creation screen Buttons F4: Parent F8: Skip Details Short cut Description & Use keys CTRL+F4 Allows you to change the parent for all sub groups. F8 Cursor will not go to Column Items are Addable (Y/N). If Items are addable is to remain the same as specified for further subgroup creation, use this button. The cursor skips the column which speeds up data entry. CTRL+C Allows you to Create a Multi Stock Category. CTRL+I Allows you to Create a Multi Stock Item. CTRL+O Allows you to Create a Multi Godown

C: Category I: Items O: Godown

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Displaying a Stock Group

You can display the existing Stock Group in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode.

Displaying Single Stock Group

Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single Stock Group) Select the Stock Group whose particulars you want to display from the List of Groups. The Stock Group Display screen is displayed as shown.

Buttons specific to stock group Display mode:

Buttons C: Category I: Items U: Units O: Godown V: Vch Types Short cut Keys CTRL+C CTRL+I CTRL+U CTRL+O CTRL+V Description & Use Allows you to Display a Stock Category. Allows you to Display a Stock Item. Allows you to Display a Unit of Measure. Allows you to Display a Godown. Allows you to Display a Voucher Types

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

Displaying Multiple Stock Groups

Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple Stock Groups) Select the Stock Group from the List of Groups.

If you select All Items from the List of Groups, all the Groups and sub Groups are displayed.

If you select Grade One from List of Groups, all the sub Groups related to Grade One will be displayed.

Buttons specific to Multi stock group Display mode:

Description & Use Buttons Shortcut Keys F4: Parent CTRL+F4 Allows you to select parent [Stock Group] from List of Group. Selected Stock Group will get displayed. C:Category CTRL+C Allows you to select Category from List of Categories. Selected Stock Category will get displayed. I: Items CTRL+I Allows you to select Stock Group from List of Groups. Selected Stock Group will display related stock items. O: Godown CTRL+O Allows you to select Godowns from List of Godowns. Select Godowns will get displayed.

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

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Altering a Stock Group

This option allows you to view the existing Stock Group in edit mode, here you are allowed to change the various information. To alter a Stock Group, Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Single Stock Group)

Select the Stock Group from the List of Groups. The Stock Group Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or press Ctrl+A to Save. Deletion is possible only in the mode,. For deleting the Stock Group, Press ALT+D. Note: You cannot delete a stock group, if it is used by any sub groups or stock items. In order to delete the Stock Group, first delete the relevant sub groups and Stock items.

Buttons specific to stock group Alter mode: Buttons C: Category I: Items U: Units O: Godown V: Vch Types Short cut Keys CTRL+C CTRL+I CTRL+U CTRL+O CTRL+V Description and Keys Allows you to Alter a Stock Category. Allows you to Alter a Stock Item. Allows you to Alter a Unit of Measure. Allows you to Alter a Godown. Allows you to Alter a Voucher Types

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

Altering Multiple Stock Groups

Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter (under Multiple Stock Groups) Select the Stock Group from the List of Groups. The Multi Stock Group Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or Press CTRL+A to save. Note: You cannot delete a Stock Group from multiple mode.

Buttons specific to Multi stock group Alter mode: Buttons F4: Parent F4: Parent F6: Skip Names Short cut Description and Use Keys F4 Allows you to select Stock Group from Under Group Field for changing the parent of sub groups. CTRL+F4 Allows you to select parent [Stock Group] from List of Group. You can alter the sub groups of selected Stock Group. F6 Cursor will not go to Column Name of Stock Group. If you want to alter only the details of Under Column and Items are addable then you can skip names. F7 Cursor will not go to column Under. If you do not want to alter parent then you can skip parent. F8 Cursor will not go to column Items are addable. If you do not want to alter Items are addable then you can skip details. CTRL+C Allows you to Alter a selected stock Category in Multi-stock category screen. CTRL+I Allows you to Alter a selected Item in Multi Stock Item screen. CTRL+O Allows you to Alter a selected Godown in Multi Godown screen.

F7: Skip Parent F8: Skip Details C: Category I: Items O: Godown

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

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Stock Categories

Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in behaviour.

For example,
Stock Item Brand A - 19 TFT Brand A - 17 CRT Brand B - 19 TFT Brand B - 17 CRT Sub Group Brand A Brand A Brand B Brand B Main Group Grade One Grade One Grade Two Grade Two Sub-Category TFT CRT TFT CRT Main Category Monitor Monitor Monitor Monitor

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. You now have the details of TFT and CRT products, duly classified. You can also view the Monitor classification. For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features > Set Yes for Maintain Stock Categories. Go to Gateway of Tally > Inventory Info. > Stock Category

More: Creating a Stock Category Creating Multiple Stock Categories Displaying a Stock Category Altering a Stock Category

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Creating a Stock Category

This option allows parallel classification of stock items. Like Stock Groups, Stock Categories are also classified based on some similar behaviour. This enables you to obtain reports for alternatives or substitutes of a stock item. To create a Stock Categories, Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Single Stock Category) The Stock Category Creation screen is displayed as shown.

A brief description of each field in the Stock Category Creation screen is given below:

Name
Enter the name of the Stock Category.

Under
Specify whether it is a primary category or a sub-category of another category. Select Primary from the list, if you do not have a parent group. Use ALT + C to create a parent if you do not have the required category in the list. Buttons specific to stock category creation: Buttons G: Groups I: Items U: Units Short Cut Keys CTRL+G CTRL+I CTRL+U Description and Use Allows you to Create a Stock Group. Allows you to Create a Stock Item. Allows you to Create a Unit of Measure. Allows you to Create a Godown Allows you to Create a Voucher Types

O: Godown CTRL+O V: Vch Types CTRL+V

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

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Displaying a Stock Category

You can display the existing Stock Category in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow you to alter any information in display mode.

Displaying a Single Stock Category

Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Single Stock Category) Select the Category for which you want to view the display details from the List of Categories. The Stock Category Display screen shows the details entered in Stock Category Master.

Buttons specific to stock Category Display mode: Buttons G: Group I: Item U: Units O: Godown V: Vch Types Short Cut Keys Description and Use CTRL+G Allows you to Display a Stock Group. CTRL+I Allows you to Display a Stock Item. CTRL+U Allows you to Display a Unit of Measure. CTRL+O Allows you to Display a Godown. CTRL+V Allows you to Display a Voucher Types

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

Displaying Multiple Stock Categories

Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Multiple Stock Categories) Select the Stock Category from the List of Categories.

If you select All Items from the List of Groups, all the categories and sub categories are displayed.

If you select Monitor from the List of Categories, all the sub categories related to Monitor will be displayed.

Buttons specific to stock group Display mode: Buttons F4: Parent G: Groups I: Items O: Godown Short Cut Keys CTRL+F4 CTRL+G CTRL+I CTRL+O Description and Use Allows you to Display a Stock Group. Allows you to Display a Stock Item. Allows you to Display a Unit of Measure. Allows you to Display a Godown.

Note: Buttons are visible only if you have opted for the same in F11: Features.

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Stock Items
Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and is the lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP 9 for each inventory item that you want to account for. Go to Gateway of Tally > Inventory Info. > Stock Items

More: Creating a Stock Item Creating a Stock item in Advance Mode Displaying a Stock Item Altering a Stock Item

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Creating a Stock Item

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.

Two Modes of Stock Item Creation:

1. 2. Normal Mode Advance Configuration Mode.

Creation of Stock item in Normal Mode:

To create a Stock Item, Go to Gateway of Tally > Inventory Info > Stock Item > Single Create (under Single Stock Item) Stock Item creation is displayed as shown:

A brief description of each field in the Stock Item Creation screen follows:

Name Specify the name of the Stock Item. Alias Specify the Alias name of Stock Item (if required). Under This field will show the List of Groups. Here you can select the Stock Group to which the Stock Item belongs. By default, Primary Stock Group appears in this field. Note: You can create a new stock Group by pressing ALT+C at this field. Units This field will show the Unit List. Here you can select the Unit of measurement applicable for the stock item. By default, Not Applicable appears in this field. Note: You can create a new Unit by pressing ALT+C at this field. Rate of duty Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of excise duty or if duty is based on item rate. During Invoicing, whenever you select a Stock Item, the Rate of duty entered here is displayed in the Invoice creation screen. Note: In F11 Inventory features, if Allow Invoicing is set to No then Rate of Duty field will not be visible. Tariff Classification Specify the Tariff Classification for the item, if applicable. Tariff Classification can be created or used when Excise features is activated for the company. Opening Balance Specify the details of Opening Stock, if any, for the Stock Item as on the date of Beginning of Books. 1. 2. 3. In the Quantity Field, specify the stock item Quantity, say 5 Nos. In the Rate Field, specify the stock item Rate, say Rs. 8000 per piece. In the Value Field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field accordingly.

Note: If Unit field is Not Applicable then the cursor will move from Quantity and Rate Field.

Buttons specific to Single Stock item creation: Buttons G: Groups I: Items Short Cut Keys CTRL+G CTRL+I Description and Use Allows you to Create a Stock Group. Allows you to Create a Stock Item.

U: Units O: Godown V: Vch Types

CTRL+U CTRL+O CTRL+V

Allows you to Create a Unit of Measure. Allows you to Create a Godown. Allows you to Create a Voucher Types

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

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Creating a Stock item in Advance Mode

Advance mode means enabling advance configuration and Features for stock item master in F12:Configure and F11:Features. Shown below are the advance configuration parameters for stock item master under F12:Configure (Master Configuration) :

Shown below are the advance Features for stock items in F11:Features:

Note: You can configure the entire setup according to your requirements. According to the configuration in F12 and F11, stock item master fields will get added and removed.

Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)

A brief description of each additional field in Stock Item Creation screen is given below.

Part No.
This Part number field gets enabled only after enabling Use Part Number for stock items in Inventory Master Configuration. This field is used to enter the Vendors catalogue number. You can also optionally print it in reports/invoices.

Description
The Description field gets enabled only after enabling Use Description for Stock Items in Inventory Master Configuration. This field is used to enter the description of the Stock Item as it is required to be printed in Quotations, Delivery Challan/Invoice.

Remarks
This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory Master configuration. This field is used to enter Remarks for the Stock Item (for internal use only). Any additional details about the Item can be entered here.

Set/Modify Default Ledgers for Invoicing?

This option gets enabled only after enabling Specify Default Ledger Allocation for Invoicing in Inventory Master Configuration. Once you enable this option, a screen will be displayed for selecting the default ledger allocation for sales and purchase for the stock item.

Note: This option is useful only in case of Invoice entry through Voucher Class.

Category
This Category field gets enabled only after enabling Maintain Stock Categories in Inventory Master Features. This field will show the List of Categories. Here you can select the Stock Category under which the stock Item belongs. By default, Not Applicable is displayed in this field. Note: You can create a new stock category by pressing ALT+C at this field.

Alternate Units
Alternative Units are individual units similar to simple units, which can be used instead of another simple unit during Invoicing / voucher entry and are also useful in displaying the stock reports alternatively in another simple unit. This is particularly useful when you need to handle different units at different times. This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in Inventory Master Configuration.

Example:
Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of wheat flour can be measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple units, which can be alternatively used.

Maintain in Batches?
This option gets enabled only after enabling Maintain Batch wise Details in Inventory Master Features. If you want to maintain the batch information of Stock Items, set the option Maintain in Batches to Yes.

Track Date of Mfg?

This option is enabled only when Maintain in Batches? is set to Yes. If you want to specify the manufacturing date for the item, set Track Date of Mfg. to Yes.

Use Expiry Dates

This option gets enabled only after enabling Set Expiry Dates for Batches under Maintain Batch Wise Details option in Inventory Features. If you want to specify the expiry date of the item, set Use expiry dates to Yes. This option is useful for stock items like medicines, Food items, etc.

Set Component BOM

This option gets enabled only after enabling Allow Component List Details (Bills of Material) in Inventory Master Configuration. Refer to Bills of Material for more details.

Set Standard Rates

This option gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory Master Configuration. This option helps you specify standard purchase rate and standard sales rates for the item. The standards are effective from the specified dates and they continue to be used at these rates until the next date, where the standard rate changes. Note: Standard Rates can also be used for valuation of closing stock.

Behaviour Group
Once you enable Allow Advanced Entries in Masters Behaviour Group option will be enabled. Options available under Behaviour Group are:

Costing Method
This field will display the List of Costing Method for valuating the Stock Item.

Depending upon the stock item, you can select the costing method for valuating the Stock item. A Brief description about each Costing Method:

At Zero Cost:
Cost of an item is considered as zero. For example, for defective items that have no commercial value.

Avg.Cost:

Periodic system:
This is also known as Weighted Average Cost. The weighted average cost for the whole year is computed as below:

Monthly system:
In monthly average cost, weighted average cost is determined on a monthly basis instead of annual.

FIFO (First-in, First-Out):

Periodic System Under FIFO Periodic System, it is assumed that items purchased first are sold first under the current financial year (i.e., first lot from the opening stock of current year). Perpetual System Under FIFO Perpetual system, it is assumed that items purchased first are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of material received first in the period, while the cost of inventory is based upon the cost of material received last in the period.

Last Purchase cost

Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based upon the Last purchase rate.

LIFO (Last-in, First-Out)

Periodic system Under LIFO, it is assumed that items purchased last are sold first under the current financial year (i.e., first lot from the opening stock of current year) Perpetual System Under LIFO Perpetual system, it is assumed that items purchased last are sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of materials received last in the period, while the cost of inventory is based upon the cost of material received first in the period.

Standard Cost
Standard Cost is Standard Rates specified in the Inventory master. Cost of goods sold and Cost of inventory is based upon the Standard Rates.

Market Valuation Method

By using Market Valuation Method, you can determine the realisable worth of an Item. Unrealised Profit of an Item = Closing value as per Costing Method Closing value as per Market valuation method. Select the appropriate method applicable for the Item from the Valuation Methods List.

At Zero Price
Realisable price of an item is considered as zero. Example: For defective items that have no realisable value in the market.

Average Price
Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for the financial year.

Last Sale Price

Item is valued at Last Sale Price.

Standard Price
User specified rate applicable for the current date specified in Item master under Standard Rate is taken as the realizable rate. Ignore Diff. due to Physical Counting? In Tally.ERP 9, you can record the physical stock as counted, using a physical stock voucher. If you wish to ignore the difference and continue with the stock as per books, set this option to Yes.

Ignore Negative Balances?

If you set this to Yes, Tally.ERP 9 ignores the item in the stock reports, in case it has a negative balance.

Treat all Sales as New Manufacture?

If you set this to Yes, whenever a sales entry is made, Tally.ERP 9 automatically updates the quantity and value in inward by treating the same entry as a New manufacture or purchase.

Treat all Purchases as Consumed?

If you set this to Yes, then, whenever a purchase entry is made, Tally.ERP 9 automatically updates the quantity and value in outward by treating the same entry as consumed.

Treat all Rejections inward as Scrap?

If you set this to Yes, then, whenever a rejection inward entry has been made [without tracking number], Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this case, you need not pass the credit note for reducing the value against rejection inward. This is used for defective items returned by the customer.

Allow use of expired Batches?

This option will get enabled once you enable the Use expiry dates under Maintain in Batches option. If you set this to Yes, during selection of batches in voucher entry, expiry batches also get included in the List of Active Batch.

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Displaying a Stock Item

You can display the existing Single Stock Item master and Multiple Stock Item masters, since it is only display you are not allowed to alter any information in display mode. To display a Single Stock Item, Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item)

Select the Stock Item you want to display from the List of Items. The Stock Item Display screen is displayed as shown.

Displaying a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to display the Stock Item under the selected group or All Items. The Multi Stock Item display screen is displayed as shown.

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Altering a Stock Item

This option allows you to view the existing single Stock Item master and Multiple Stock Item masters in edit mode, here you are allowed to change the various information.

In the Alteration mode, you can change the item master settings. If a transaction is entered for that item, it is not possible to alter the units and delete the stock item. To Alter a Single Stock Item, Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Single Stock Item)

Select the Stock Item you want to alter from the List of Items. The Stock Item Alteration screen is displayed as shown.

Altering a Multiple Stock Item

Go to Gateway of Tally > Inventory Info > Stock Items > Alter (under Multiple Stock Item)

Select a Stock Group or All Items from List of Groups to alter the Stock Item under the selected group or All Items. The Multi Stock Item Alteration screen is displayed as shown.

Note: In the Multi Stock Item Alteration screen, you can create an Item by specifying item name after the last item, but you cannot delete an item.

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Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure. To setup Bill of Materials Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info. > set Allow Component List Details (Bill of Materials) to Yes

OR Go to Gateway of Tally > Inventory Info > Stock Items > Create > Press F12:Configure (Stock Item Configuration) and set Allow Component List Details (Bill of Materials) to Yes.

For a Stock Item, you can create

A Single BOM Multiple BOM Single/Multiple BOM with Type of Item

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods. Let us create a new Stock Item Television and specify BoM. Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit field Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Component list details (Bill of Material),option will display in item master only on entering/ specifying the unit of measure in the Units field. Press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) screen

In Stock Item Components (BOM) screen BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture.

Note: The godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features) Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.

Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Single Bill of Materials
All the manufacturing transactions can be accounted through a Stock Journal. To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufacturing Journal to Yes . Or Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes

Note: Bill of Material should be created before accounting the manufacture of an item.

Go to Gateway of Tally > Inventory Vouchers

1. Select the button F7: Stk. Jrnl or press Alt + F7.

If you have created a new voucher type Manufacturing Journal, a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen Name of Product: Select the product which needs to be manufactured from the List of Items. BoM Name: In this field the BoM created for the stock item will be displayed automatically with one more option Not Applicable.

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption) side based on the BOM defaulted. Godown: Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features) Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in the BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished goods based on the availability of goods or customer requirements. The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the manufacturing Voucher. This feature will be useful where you are using different components to manufacture the same stock item based on the customer requirement Example: Customer A wants Television to be manufactured with specific brand of Picture Tube. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers. To create multiple Bill of Material Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen Enter the Stock Item Name, select the appropriate stock group and specify the appropriate unit of measurement in Unit field Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name - Customer A and press enter to view Stock Item Components (BOM) screen

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to identify the BOM while recording manufacturing transaction. In Stock Item Components (BOM) screen BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods.

Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

Note: In the above scenario for Stock item - Television we have created 2 BOM. Similarly you can create multiple BOM with different component list for the stock items. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials
In Manufacturing Journal voucher Name of Product: Select the product which needs to be manufactured from the List of Items. BoM Name: In this field Tally.ERP 9 displays the BOM List for selection of BOM, as multiple BOM are created for the finished goods.

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption) side based on the BOM defaulted. Godown: Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features) Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in the BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

Creating Single/Multiple Bill Of Material with Type of Item

In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced. In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured. Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Product/Co-Product/ Scrap. Let us take the case of manufacture of Sugar and create the BOM for the stock Item To create Bill of Material with Type of Item

Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Creation screen 1. Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit field 2. Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen 3. In Stock Item Multi Components (M BOM) screen Under Name of BOM specify component list Name as - Standard

4. In Stock Item Components (BOM) screen, Set up: In F12: Configuration, enable the option Define Type of Component for BOM to Yes

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new column Type of Item will be displayed. BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field. Components of: In this field application displays the Name of the Stock Item for which the components are defined. Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field identify the raw materials which are required to manufacture the finished goods

Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. Type of Item: In this field select the appropriate type for the item selected. By-Product: Select this classification for the stock items which are produced as By-Product of finished goods Component: Select this classification for the Raw materials /inputs which are used or consumed for the production of finished goods. Co-Product: Select this classification for the stock items which are produced as Co-product of finished goods Scrap: Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Products/ By-Products /scrap manufactured.

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption. Rate (%): In this field you can specify the percentage of cost of components to be considered to determine the cost of production of Co-products/By-Products/Scrap.

Note: If the Component Type selected is Co-product/By-Product or Scrap, cursor will move to Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap. The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component). Bagasse & Molasses are identified as By-Products.

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap section Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If required you can create the second BOM for the stock Item Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with Component Type
In Manufacturing Journal voucher Name of Product: Select the product which needs to be manufactured from the List of Items. BOM Name: In this field the BoM created for the stock item will be displayed automatically with one more option Not Applicable. For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application displays the BOM list for selection

Note:Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption)side

*The By-products & scrap produced during the manufacture will be displayed under CoProducts/By-Products/Scrap side

The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM. Godown: Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features) Quantity: In this field specify the quantity of finished goods manufactured. Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in BoM. Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured. Co-Products / By-Products / Scrap: In this section the co-products/ by-products/scrap produced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in BOM Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Quantity of finished goods manufactured. % of Cost: In this field, the percentage specified in Rate (%) column for the By-products/CoProducts or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-products/By-Products/Scrap.

For field description refer Manufacturing Journals.

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM. Example: For stock item Television, ABC company has 2 BOM - Customer A and Standard. Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tube - Picture Tube LG. Except Picture Tube, the components used to

manufacture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Customer B. To create the BOM Go to Gateway of Tally > Inventory Info. > Stock Items > Create In Stock Item Alteration Alter Components (BOM): To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen In Stock Item Multi Components (M BOM) screen The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key) Enter the BOM Name - Customer B

Press Enter to view Stock Item Components (BOM) screen In Stock Item Components (BOM) screen To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

In Copy BoM Details screen Copy Component for BOM: In this field select the BOM from which the components to be copied. Here ABC company is copying the components from Standard.

Press Enter. The components of Standard BoM will get copied to BOM - Customer B.

Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list. Item: In this field select the Picture Tube - LG and Retain other items/components.

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture and Quantity of inputs (components).

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Accounting Vouchers
Accounting Vouchers are used to record all accounts related transactions in Tally.ERP 9. You can selectively set the configuration for entry to allow only those features, which you require while entering vouchers. Go to Gateway of Tally > F12: Configure > Voucher Entry

For more information refer F12: Configurations for voucher entry. More : Predefined Vouchers in Tally.ERP 9 Inventory Vouchers Optional & Non-Accounting Vouchers Order Processing Advanced Voucher Entry in Tally.ERP 9

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Creating a Purchase Entry

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase transactions of the company. To pass a Purchase Voucher: Go to Gateway of Tally > Accounting Vouchers Click on F9:Purchase on the Button Bar or press F9.

For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-

a) Debit Purchase Account b) Credit Party Account

To pass a Purchase entry in the Invoice mode, you need to enable the option Allow Invoicing option in F11:Features (F1: Accounting or F2:Inventory Features). Invoice mode is of two types, namely An Account Invoice An Item Invoice

Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an Account Invoice. This is useful especially when a Service Bill is entered and does not include Inventory. Pass a purchase Invoice for Service availed from XYZ Couriers.

Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger account. This is useful to record all the Inventory movements in books of account. Pass a Purchase Invoice against purchase of Item A 100 Nos. @ Rs. 10/= per quantity from LMN & Company.

Configuring a Invoice
Before creating the Purchase Invoice, you can set your Invoice Configurations from F12 configure: Go to Gateway of Tally > Accounting Vouchers > F9: Purchases (As Invoice) Select F12 Configure.

Set the options, as required.

Purchase Invoice Configuration

1. 2. 3. 4. 5. Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the default name and address present in the ledger. Allow separate Buyer and Consignee names: Customers who are into consignment business and would like to have the Consignee details on the Invoice, have to set this option to Yes. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single Purchase Ledger in the Invoice, you need to set this option to Yes for faster data entry. Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically as defined in voucher type master in ascending order. Use Additional Description(s) for Item Name: If you would like to specify any additional description for item during entry, this option has to be enabled.

6. 7. 8. 9. 10. 11. 12. 13.

Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice, set this option to Yes. Importers Options: This is useful for import transactions. Show turnover achieved with Customer: This option will help to view the turnover details during entry. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with quantity details. You can then check which item is having negative stock balance. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by configuring this option. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering the additional Expenses.

For more details on Purchase Voucher mode configurations refer Voucher Entry Configuration

Special Keys on the Button Bar:

When you are passing an Item Invoice in Invoice mode, the following options will be available in the Button Bar. Alt+I Acct Invoice You can toggle between Item Invoice and Account Invoice, by clicking on this option on the Button Bar or pressing Alt+I or vice-versa. Ctrl+V As Voucher You can toggle between Invoice mode and Voucher mode, by clicking on this option on the Button Bar or pressing Ctrl+V or vice-versa.

Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

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Creating a Sales Invoice

When a sales transaction is made, a document detailing the transaction (item name, tax, etc) has to be given to the buyer or debtor as proof of purchase by him. This document is called Invoice or Bill or Cash Memo. Tally.ERP 9 provides the option of creating Invoices.

Invoice mode is of two types. It may be: 1. 2. An Account Invoice An Item Invoice

Account Invoice:
Sales Account Invoice is generally used by professionals such as doctors and consultants who require to issue an invoice for certain services provided such as consultancy charges, professional fees, etc. Trading and manufacturing organizations also use the Account Invoice for invoicing service charges. On the Sales entry screen, click on Acct Invoice button, which is displayed on the Button Bar on the right-hand side of the screen to display the Sales Account Invoice screen as shown. Pass a Sales Account Invoice for Service provided to Debtor B:

Tally.ERP's Account Invoice mode displays the list of ledger accounts, which can be invoiced as required. This is unlike Item Invoice where Tally.ERP 9 displays the list of stock items.

Item Invoice:
Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing organizations commonly use this format. On the Sales invoice screen, click on the button Item Invoice, which is displayed on the Button Bar on the right side of the screen and the Sales Item Invoice appears as shown below: Pass a Sales Invoice against sale of Item A 50 Nos. @ Rs. 15/= per quantity to Debtor C:

Tally.ERP's Item Invoice mode displays the list of stock items, which can be invoiced as required.

Special Keys for Voucher Narration Field

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

More : Printing a Sales Invoice

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Configuring a Invoice
Before creating the Invoice, you can set your Invoice Configurations from F12 configure: Go to Gateway of Tally > Accounting Vouchers > F8: Sales/F9: Purchases (As Invoice) Select F12 Configure.

Set the above options, as required.

Sales Invoice Configuration

1. 2. 3. 4. 5. 6. Accept Supplementary Details: Set this option to Yes to specify the Despatch Details. If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Allow separate Buyer and Consignee names: Customers who are into consignment business and would like to have the Consignee details on the Invoice, have to set this option to Yes. Use Common Ledger A/c for Item Allocation: If you would like to allocate all the Items to a single Sales Ledger in the Invoice, you need to set this option to Yes for faster data entry. Use Defaults for Bill Allocations: Setting this option to Yes will allocate Bill Numbers automatically as defined in voucher type master in ascending order. Use Additional Description(s) for Item Name: If you would like to specify any additional description during entry, this option has to be enabled. Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice/Challans, set this option to Yes. Use Pre-Closure Order Details: To pre-close an order while raising a sales invoice for partial execution, this option needs to be enabled. Exporters Options: This is useful for exporting and importing transactions. Show turnover achieved with Customer: This option will help you see the turnover details during entry.

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10. Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields. 11. Warn on Negative Stock Balance: Tally.ERP 9 will display a warning message Negative Stock with quantity details. You can then check which item is having negative stock balance. 12. Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by configuring this option. 13. Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry. 14. Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering additional Income/Expenses.

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Printing a Sales Invoice

To print any Invoice/voucher, press ALT+P or click on the button Print. You can configure the voucher type to print automatically after saving the voucher for which, the option Print after saving Voucher must be set to Yes.

Note: You can configure the printing options, by selecting the appropriate buttons. You can give additional information, change titles, print additional pages, and change printer settings.

Buttons specific to sales invoice printing options

Button L I T G R Shortcut Keys Alt+L Alt+I Alt+T Alt+G Alt+R Behavior To select the language in which the Invoice is to be printed. To preview the Invoice To change the Report Titles To select the Page range for printing To change the method of printing

F C S

Alt+F Alt+C Alt+S

To change the print format/mode To increase/change the number of copies to print To change/select the Printer

The buttons Pre-Printed and Quick Format toggle between Plain Paper and Neat Format respectively. These are print specifications that you set. Pre-printed is for pre-printed stationery. Quick Format does not give fonts or other niceties but is ideal for fast printing. The Invoice Printing Configuration appears as shown.

Set the print options as desired. You can configure the invoice as per your requirement. The options depend on the various F11: Features and F12: Configure parameters, that have been set for your company and for the voucher either by you or by the administrator. The printed Sales Invoice will appear as shown:

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Inventory Vouchers

Inventory Vouchers perform the function in the inventory system that accounting vouchers do in the accounting system. Inventory Vouchers are also means of entering transactions. Accounting vouchers will update only Accounts, but Inventory vouchers will update both Accounts and Inventory. Inventory vouchers record the receipt and issue of goods/stock (Movement of goods), the transfer of stock between locations and physical stock adjustments. If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the Balance Sheet stock figures. The stock balances will be maintained separately. Set the option Integrate Accounts and Inventory to Yes in F11: Features : F1: Accounting Features/Inventory Features.

You can trace a transaction from the beginning i.e., goods transfer stage to the financial accounting stage irrespective of integration status. For example, the purchase of stock can be tracked from the purchase voucher through the receipt note, through invoice from the supplier and also through eventual payment. More: Pre-defined Inventory Vouchers in Tally.ERP 9

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