Price Level and Price List in Tally Prime – A Complete Guide with Examples

Tally Prime, the flagship accounting software from Tally Solutions, is a powerful tool widely used by small and medium businesses across the globe. One of its most beneficial features for sales and inventory management is the Price Level and Price List functionality. This feature empowers businesses to manage complex pricing strategies with ease, ensuring accuracy, flexibility, and enhanced customer satisfaction.
In this comprehensive guide, we’ll explore everything you need to know about Price Levels and Price Lists in Tally Prime. We’ll walk you through step-by-step instructions, practical business scenarios, and real-world examples to help you master this vital aspect of Tally Prime.

Introduction to Price Levels and Price Lists

Price Level refers to a categorized pricing structure used for different types of customers such as retailers, wholesalers, or VIP clients. A Price List contains item-wise pricing based on these levels.

For example:

Retail Price for walk-in customers
Wholesale Price for dealers
Export Price for international customers

This system allows businesses to sell the same product at different prices based on customer classification.

Benefits of Using Price Lists in Tally Prime

Using price levels and lists offers a wide range of benefits:
Simplifies billing and invoicing
Reduces errors in pricing
Enhances customer relationship management
Speeds up the sales process
Supports seasonal or promotional pricing
Allows for region-specific or customer-type specific pricing

Activating Price Level and Price List Feature in Tally Prime

To use this feature, it needs to be enabled in Tally.

Steps:

Go to Gateway of Tally > F11: Features > Inventory Features (F2).
Set Use Multiple Price Levels to Yes.

Set Use Separate Price List for Each Price Level to Yes.

Once activated, you can now create different price levels and assign price lists.

Understanding Price Levels

Price Level is the classification of customers or sales strategies.

Examples of Price Levels:

Retail
Wholesale
VIP
Online Sales
Export
Each level can have a distinct price for the same product.

Creating Price Levels

Steps:

Go to Gateway of Tally > Inventory Info > Price Levels > Create.
Enter the name of the price level (e.g., Retail, Wholesale, etc.)

Save the configuration.

You can create unlimited price levels based on your business model.

Creating Price Lists

Price Lists are created for each stock item under a particular price level.

Steps:

Go to Inventory Info > Price List > Create/Alter.
Select the Price Level (e.g., Retail).
Choose the stock item.
Enter price, date, applicable unit, and discount if any.

You can also define:

Effective dates
Batch prices
Multi-unit pricing

Assigning Price Lists to Price Levels

Once a price list is created under a price level, it automatically gets linked.

For example, you create a Retail price list with:

Product A: ₹500
Product B: ₹700

This list will be shown when you select the Retail price level during billing.

Applying Price Lists During Sales

Steps:

Go to Accounting Vouchers > F8: Sales.
Select the customer ledger.
In the price level field, select the applicable level (Retail, Wholesale, etc.)
Choose the stock item. Tally will auto-fill the price from the list.
This avoids manual price entry and ensures accuracy.

Example Scenarios

Let’s consider a business selling Mobile Phones:

Product	Retail Price	Wholesale Price	Online Price
iPhone 13	₹80,000	₹75,000	₹78,000
Samsung S21	₹60,000	₹57,000	₹59,000

Create three price levels and define the respective prices. Then, during billing, choose the appropriate level to auto-fetch the price.

Handling Discounts and Markups

Tally allows setting:

Flat Discounts
Percentage-based Discounts
Markup over cost or base price

For example:

MRP: ₹1000
Retail Discount: 10% → ₹900
Wholesale Markup: +5% over cost (₹700) → ₹735
This flexibility supports dynamic pricing.

Exporting and Importing Price Lists

You can export price lists to Excel or XML for editing and re-importing.

Steps:

Go to Display > Price List > Export
Use Import Data > Price List to bring updated prices back.
Ideal for businesses managing hundreds of SKUs.

Multi-currency Price Lists

Tally supports price lists in multiple currencies for international sales.

Example:

Price in USD: $100
Price in EUR: €90

Each price level can be currency-specific, reducing exchange rate confusion.

Using Price Levels in Invoicing

When you create a sales invoice, selecting a price level automatically picks up the defined price.
If the user tries to change it manually, Tally can be configured to:
Allow with warning
Block changes based on user role

Viewing Price List Reports

You can generate reports to view current pricing across levels.

Steps:

Go to Display > Inventory Books > Price List
Filter by item, price level, date
This helps in audits and strategic pricing decisions.

Editing and Deleting Price Lists

To Edit:

Go to Inventory Info > Price List > Alter
Change prices, discounts, or effective dates

To Delete:

Use Alt+D while in Alter mode
Note: Deletion impacts past transactions if backdated.

Price Lists for Services

Services like AMC (Annual Maintenance Contracts) or Consulting can also use price lists.

Example:

AMC for Retail: ₹2000/year
AMC for Corporate: ₹1800/year

Create service ledgers and assign price lists as with stock items.

Price Lists for Different Units of Measurement

Tally supports pricing based on UoM:

Example for Cement:

Per Bag: ₹350
Per Ton: ₹7000

Create unit-wise price entries in the price list.

GST and Price List Integration

Price list entries can include tax-inclusive or tax-exclusive prices.

You can:

Show price inclusive of GST in invoices
Maintain pre-tax prices in lists
This ensures GST compliance while retaining flexibility.

Bulk Price Updates

Instead of updating item-wise:
Use Import XML
Use Excel-based tools
Use Tally’s ODBC or APIs (for advanced users)
This saves time in bulk updates.

Controlling User Access to Price Levels

Use Tally’s Security Control to restrict access:
Only managers can edit price lists
Sales staff can view but not alter
Admin can assign price levels
This ensures price integrity.

Price Levels by Customer Type

Categorize customers in groups:
Create Debtor Groups (e.g., Wholesale Customers)
Assign price level to the group
During billing, Tally auto-selects based on the customer’s group.

Price Lists by Geographic Region

If you sell at different prices in various regions:
Create Price Levels like North Zone, South Zone
Assign price lists accordingly
Supports region-specific taxes, transportation, and logistics costs.

FAQs on Price Level and Price List in Tally Prime

Q: Can I assign multiple price levels to a customer?
A: No. One price level per transaction, but you can switch based on need.
Q: Are price levels mandatory in sales?
A: No. You can still enter prices manually if price level is not used.
Q: Is it possible to set future prices?
A: Yes. Use effective dates in price lists.

Common Errors and Troubleshooting

Problem: Price not reflecting during invoice
Solution: Check if correct price level is selected and effective date is valid.
Problem: Discount not applied
Solution: Ensure “Allow discount entry in invoices” is enabled in Features.
Problem: Price level not appearing
Solution: Re-check if the feature is enabled and levels are created properly.

Final Thoughts

Mastering the use of Price Level and Price List in Tally Prime can transform the way you handle sales, pricing, and inventory. It adds professionalism, reduces human error, and ensures that every customer gets the right price based on their profile or location. Whether you're managing a retail outlet, wholesale business, or export company, these features bring structure and strategy to your pricing efforts.

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