Multiplestock Valuation

Tally handles multiple valuations methods for stock items

(E.g. Average Cost, Average price, Last Purchase cost, Last Sales price, FIFO etc). Default valuation methods can be specified at the time of creation of stock items and Tally will automatically displays Stock reports using default Valuations methods. Tally also allows user to view stock reports with different valuation methods.

Procedure:

Lets assume Stock items are already created. Now select Inventory Info -> select Stock Items -> Alter -> select any item -> select F12 (configuration) -> activate Advanced entries in masters and save screen. -> Specify costing method and save screen.

How to view report in different valuation methods:

-> select Stock Summary -> Tally displays stock summary based on default valuation methods. Now select New Column (Alt+C) -> specify date range -> specify ‘Methods of Valuation' as per requirements. Tally, now displays stock report based on the valuation option opted for.

Batch Wise / Lot Wise - Including Expiry Dates

Tally provides Batch wise facilities for stock items. This feature is extremely useful and is used mostly in Pharmaceutical, Chemical, Food Industries and other industries dealing with perishable items.

Procedure:

-> select F11 (features) -> activate ‘Maintain Batch wise details' -> The user can also activate ‘Set expiry dates for Batches' (if required) and save screen -> select Inventory Info -> select Stock Item -> select Create -> specify Stock item name and other details -> activate ‘Maintain Batches' -> activate Mfg date and expiry dates if needed -> specify opening balance with batch details and save screen.

Entering Transactions:

While entering purchase entry, select the item and specify batch details along with mfg date and expiry date.

How to view reports on Batch details ?

-> Select Stock Summary -> select F12 (Config) -> activate ‘Expand all levels in detailed format' and save screen -> select detailed (Alt + F1). Tally displays all stock items along with their batch details.

Alternate Units of Measure and Tail Units

Different items could have different Units of Measure. Tally allows the users to define any number of units as per his requirements. It is also possible that each item could be transacted in one or more than one units, for e.g. an item (for e.g. Sugar) could be purchased in kgs and sold in packets. Tally allows user to create stock items with alternate units (activate Alternate units in configuration screen of Stock items). Hence Stock items can be maintained in both Main Units as well as Alternate Units. Tally also has a concept called Compound units. Compound unit is a relation between of two simple Units. for e.g. the user could create a unit called ‘Box of 12 Nos'. Tally displays summary of all items in base unit (default). The user can also view Stock Summary report with ‘Tail Units' i.e. if we consider the e.g. above (Box of 12 Nos), here tail unit is nos.

Procedure:

How to use Alternate Units ?

-> select Inventory Info -> select Stock items -> select alter -> select any item for which ‘Alternate Unit' is to be activated -> now select configure (F12) -> activate Alternate Units -> now come down to Alternate Units and specify alternate units -> specify the relation between the two units (e.g. base unit is Nos alternate unit is kgs, now you can specify a relationship ->1 nos = 0.5 kgs)

How to view reports ?

-> Select Stock Summary -> Select F12 (Configure) -> activate ‘Show using Alternate units' and save screen.

Tail Units:

select F12 (configure) in Stock Summary -> activate ‘Tail units of compound Units' and save screen. Tally displays compound units of stock items in ‘Tail units'.

Sales and Purchase Orders

Tally permits users to handle Purchase orders and Sales orders. Based on the information provided Tally generates reports for Purchase order outstanding and Sales order outstanding reports. Purchase orders can be e-mailed or printed and sent to suppliers.

Procedure:

-> select F11 (features) -> select activate Purchase orders and Sales Orders and save screen. -> now, select Voucher Entry -> select F9 -> opt for P.O. -> select supplier name and related details -> enter Order No. -> select item and enter other details and save Voucher. Likewise, Sales ordes rec'd are enterd in Sales order Voucher screen.

How to view reports ?

-> Select Display -> select Statement of Inventory -> select Purchase order summary or Sales order summary -> Tally shows Group wise summary. Now, drill down till you get P.O. details. If the user wishes to view orders, which are over due then he selects F7 (Due only) and Tally displays order, which are already overdue for that item. The user can also shift to another item by clicking on F4 (Item).

Tracking Through Receipt Notes and Delivery Notes

Generally, in any business, invoices are sent along with the goods. But there are cases when goods are dispatched first and invoices are sent later or vice versa. In such cases stocks should not be updated along with accounts. Tally handles such situations with the help of Tracking nos. You can receive / dispatch goods first and receive or send invoices later. You could also receive invoices followed by the material. Receipt notes and delivery notes are Inventory vouchers and hence will not affect accounts. Although these vouchers do not affect accounts they will be displayed in Profit and Loss Statement as a part of Purchases and Sales as Purchase bills to make and Sales bills to make.

Procedure:

-> activate Tracking nos in F11 features ® select Inventory Info -> select F9 -> select Receipt Notes -> enter Party details -> select item ® now user will have to specify tracking nos -> complete the voucher by specifying all other details. In case of delivery notes select Delivery Notes (F8) after selecting voucher entry -> then follow the same procedure as above. While raising invoices, recall the tracking no specified during the entry of inventory vouchers (Receipt note and Delivery notes).

How to view a report ?

-> Select Display -> select Statement of Inventory -> select Purchase bills Pending. Here the report will show information on ‘Goods rec'd but purchase bill not rec'd as well as ‘Purchase bill rec'd but goods not rec'd'.

REJECTION IN AND REJECTION OUT

Materials that are purchased or sold might be returned due to damages or for some other reasons. Tally handles these rejections with the help of Rejection in (for Sales returns) and Rejection out (for Purchase returns) Vouchers. These rejection entries will update inventory stocks immediately. The accounting part is updated by entering Credit Notes for Sales returns and Debit notes for purchase returns.
But in some cases the user would like to scrap those materials which are Rejected In (i.e. sales return), in such cases the user can activate the feature ‘Treat all Sales Returned as Scrap' during creation of stock item or by going through Alter mode (for Stock Items) option.

Procedure:

-> activate Rejection Notes in F11 (features)

For Rejection In -> select Voucher Entry from ‘Gateway of Tally' -> select F8 (Rejection In) -> select Party Ledger -> select item which is rejected (sales return) -> Tally displays the list of tracking nos. -> select particular tracking no., enter the qty and complete the transaction. For entering Rejection out select F9 (Rejection out) and continue with the transaction as above.

Additional Cost on Purchases :

When a purchase is made there are additional expenses like freight, handling charges, taxes etc incurred. These additional charges need to be added to the value of the product. Tally allows the user to add additional cost incurred, to the value of the product during the time of voucher entry or at a later stage.

Procedure:

There are two methods of adding additional cost on Purchases.

Method 1

-> select F11 (features) -> activate ‘Track additional cost of purchase' and save screen -> now, select Voucher entry -> select F9 (purchases) -> enter accounting details. When the user selects purchases, Tally displays list of inventory items -> select item, specify qty, rate, value. Tally now displays another screen, where the user has to specify the additional cost along with the percentage or can specify actual cost. The additional cost is added to the value of the product.

Method 2

At times the user would have completed the purchases and would want to add additional cost on purchases at a later. Then follow the procedure below.

Firstly create a ledger account -> select Accounts info -> select Ledger -> select Create -> create new ledger, activate ‘Inventory values are affected' and save screen -> select Voucher Entry -> select payments -> select the Ledger account (e.g. Customs Duty, Taxes, freight etc), the cost of which will have to be added to the to the value of stock item purchased -> Tally displays list of stock items -> select stock item and without specifying qty, specify value. Select other stock items and complete the transaction. This entry automatically updates the value of stock item.

How To a view report ?

If the user wishes to view additional cost for stock items for any purchase, then he can -> select Display -> Inventory Book -> Movement analysis -> select stock item analysis -> Tally displays all parties from whom the item has been purchased with their effective rate-> Drill down further and the user will be able to get information of all purchases with their basic rate, additional cost, total value and effective rate.

Movement Analysis

For Party wise/ Item wise/ stock group wise : Tally offers another important inventory management tool called Movement Analysis. With this report the user can analyse the movement pattern of materials either Party wise, Group wise, item wise etc. Using this report the user can analyse the price at which each party has supplied a particular item.

Movement analysis for Party shows, inward and outward movements of all stocks with effective rate and value for the selected party. Select an item and drill down further and Tally displays transaction wise details along with a separate column for additional cost.

Movement analysis of Stock items shows party wise inward and outward movements of stock items with basic rate and effective rate. Select any Party and Drill down further for more analysis

Movement analysis of a stock group shows the total inward and outward movement of stock items with their effective rates for that particular group of items.

Procedure:

-> select Display -> Inventory Books -> select Movement analysis -> select any option as per requirements -> You can drill down further to get more analysis.

PROFITABILITY ANALYSIS- Stock Group Wise / Stock Item Wise / Invoice Wise / Location

WiseTally automatically calculates gross profit for each and every item based on sale price and consumption cost. Gross profit is the difference in value between sale price and consumption value. Consumption value is calculated based on purchase price. Tally Calculates gross profits for each invoice, stock item, stock group as well as items location wise.

Stock group wise:

-> select Display -> select Inventory Books -> select Stock Group -> select F7 (Show profits) -> Tally displays sales value, consumption cost, gross profit along with %'s.

Location wise:

-> select Display -> select Statement of Inventory -> select Locations (Warehouses) -> select any location -> select F7 (Show profits)

Price List with Multi Price Levels

Tally allows its users to predefine multiple levels of price list. For e.g. the user can define price list for Distributors, Dealers, Retailers etc. While entering the price lists Tally displays the cost price as well as last price (historical data) for that stock item. This simplifies and also eliminates the chances of mistakes during the time of invoice entry.

The user can also predefine price levels for party's at the time of creation of ledger accounts. Hence, when the user opts for a particular party during voucher entry, he has to select only stock items and specify the qty. The price is selected automatically based on the levels defined. The user can also upload the price list on his company web site.

How to define Price levels?

-> Select F11 (features) -> activate ‘ Set / modify other company features' -> activate ‘ Use multiple price levels for Invoicing' specify names of different levels that are to be created and save screen.

How to enter price level details?

-> Select Inventory Info -> Select Price list -> select any Group or All -> specify rate for all items of the group. The user can specify different rates for different quantities of the same item as well as specify different rate of discount. > save screen.