Real Time Integration with Costing
The Inventory system in Tally.ERP 9 is completely integrated with all other functions and is real-time. When you enter a Purchase bill, your stocks get updated. When you sell, stocks reduce. When you enter a production voucher, the produced items immediately start showing in stock. Valuation of stocks is done automatically. A unique feature of Tally.ERP 9 allows viewing the value of your stock items using all known valuation methods. Tally.ERP 9 enables a user to apportion additional costs of purchase or production and arrive at the exact landed cost of Inventories.
To put it simply, whenever a user is entering a Purchase bill or a Production voucher, he can add additional expenses in these vouchers which are apportioned between the various Stock items. Thus, the user gets the exact landed cost of each item.
Count Stock while Selling & Billing
While a set of your users are executing Sales or Purchase transactions, you can still perform a physical stock take of your Inventory. As mentioned above, everything in Tally.ERP 9 is real-time. By nature, Tally.ERP 9 keeps the stock count, valuation & costing stock online. The “Stock query” facility allows the user to see the stock related information while Selling and Billing. Tally.ERP 9 also gives the ‘Asset Value’ (Stock in hand) & the ‘Market Value’ or the ‘Stock Disposable Value’ – even while billing. This could be helpful in many situations like understanding the Asset value Vs. Market value of finished goods; thereby making these reports very helpful for MIS purpose and in addition dealing with banks for various finance needs!
Average Cost Valuation Method
Tally.ERP 9 allows user to use the multiple method of valuation like LIFO, FIFO or Average Cost Valuation side-by side. This Average Cost Valuation method available in Tally.ERP 9 enables businesses to see the valuation of closing stock depending upon the average cost of the stock item which is calculated using the formula – Total Inward value / Total Inward Quantity.
Track your Inventory across multiple stores
Tally.ERP 9 allows you to maintain multiple stores locations and godowns and track stocks in each of these, till the last rack or bin.
Ageing of Stock
In Tally.ERP 9, the Stock Ageing report helps businessmen to keep track of the amount of time merchandise has been in stock. Based on this information he can decide when and how to liquidate the stock. Using this facility a businessman can age stock either on purchase date or date of manufacture.
Re-order in Time
Tally.ERP 9 allows a user to define Re-order levels for each stock item based on their actual consumption over a period or based upon a pre-defined quantity. . Minimum Order Quantity (MOQ) can also be fixed for each stock item. . The Re-order report gives details of each item – its balance, re-order level, shortfall and how much should be ordered. This report helps a businessman to maintain optimum levels of stock.
Categorise Stock – Stock items created under Stock Groups can be tagged to Stock Categories also. In other words, Tally.ERP 9 allows grouping of Stock Items in two different, parallel trees – enabling viewing of these items from two different dimensions.. For example, an Electronics showroom dealing in TVs, DVD players, Mobiles etc.. of different brands can have its stocks maintained in Tally.ERP 9 thus :
a) Sony LCD 40” – under Stock group “TVs” and under Category “Sony”
b) Nokia 2310 – under Stock group “Mobiles” and under Category “Nokia”
Now, if the owner wants to view stocks based on type of products, then he can use the Group “tree” If he wants to view based on Brand, then he can use the Category report. Therefore, he gets both dimensions to his Inventory.
Flexi UoM –
Flexible Unit of Measurement –
a) Users can define their own units of measurement
b)Complex, compound units can be created in a simple manner e.g. 1 Gross of 12 Dozens of 12 pcs
c) Alternate units can be created for stock items – e.g. Cotton may be purchased in Bales, but sold in kgs. Both units can be maintained and used d) Rate of an item can be entered based upon any unit – main or alternate
e) Flexible entry - Tally.ERP 9 allows the handling of unique situations. . E.g. Your standard compounded UoM states 100 Kg of Cotton is 1 Bag and you are in the process of shipping 50 bags. Your supervisor says the ‘water content’ in cotton is higher than the regular levels – and warns that if you ship 100 Kg per bag, it will be only 98 Kg by the time it reaches the Customer. Therefore, you need to ship 102 kgs per bag. Tally.ERP 9 gives you the flexibility of shipping 102 Kg per bag without changing the master UoM. For this transaction, 102 Kg per bag will be the Flexi UoM.
Unlimited Warehouses
Tally.ERP 9 allows to maintain the stock in various locations such as Godowns or Warehouses or Bins etc. With Tally.ERP 9 you can create unlimited levels of locations.
Track Batches
Considering the specific requirement of food\pharmaceutical industry, Tally.ERP 9 also supports tracking inventory thru batches – along with their Manufacturing and Expiry Dates . Batchwise reports are also available.
Possible queries of Reader (FAQ)
1. Can I manage Manufacturing process in Tally.ERP 9?
Yes. Based on the business need you will be able to define the manufacturing process.
2. Can Tally.ERP 9 give me a report of various Cost Valuation methods to value my stock?
Yes. With a single click, you can view your Stock value based upon the following valuation methods – without changing the default method !
a) Avg. Cost (Default Costing Method)
b) FIFO
c) FIFO Perpetual
d) Last Purchase Cost
e) LIFO Annual
f) LIFO Perpetual
g) Monthly Avg. Cost
h) Standard Cost
3. What do you mean by Flexi UoM?
Flexi UoM means Flexible Unit of Measurement. Following types of units can be defined in Tally
a) Simple (nos, pieces …)
b) Compound (box of 10 pieces, carton of 100 bottles …)
c) Alternate (1 box = 12 pieces during entry it can be recorded as 1 box = 15 pieces or 1 box = 10 pieces)
(See the above explanation also under the head Flexi UoM)
4. Does Tally.ERP 9 support physical counting system, especially during year end?
Yes, Physical Stock entry can be passed and then reconciled with transactions entered.
5. Can Tally.ERP 9 help in generating Cost Sheet?
Not presently. The current version of Tally.ERP 9 provides you the Cost Estimation report using BoM defined in Item Master. Future versions of Tally.ERP 9 will be more comprehensive.
6. How do I account for scrap?
There are two scenarios related to Scrap
a) When the same Stock item is scrapped – Create a Godown “Scrap” and using a Godown Transfer voucher, transfer the scrapped quantity from its godown to the “Scrap” godown. When the scrap is sold off or discarded, simply consume it, using the Sales voucher (in case it is sold) or the Stock Journal voucher (in case it is discarded)
b) When a new item is created (as scrap) while manufacturing a product – this new item can be named “Scrap” and then treated in the same manner as above.
Feel free to be in touch with us if you have any comments / query.
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Happy Tallying!!
AiyerJi