Introduction to Stock Entries in Tally Prime
Tally Prime is a powerful accounting software that also manages inventory operations. One of the core functions is recording stock entries, which allow businesses to track movement and adjustments in inventory. Stock entries ensure proper valuation, internal transfers, production tracking, and accurate stock maintenance.
Importance of Stock Entries in Inventory Management
Stock entries help in:
- Keeping inventory records updated
- Ensuring accurate costing
- Avoiding stock shortages or surpluses
- Supporting internal transfers and production activities
- Facilitating audits and physical verification
Types of Stock Entries
There are several types of stock entries in Tally Prime:
Stock Journal: For transferring stock between locations, recording additional costs, and adjusting inventory.
- Physical Stock: For updating physical inventory during stock counts.
- Delivery Note & Receipt Note: For outward and inward stock movement.
- Rejection In/Out: For returning goods.
Enabling Inventory Features in Tally Prime
Before you can make stock entries, you need to enable inventory features.
Steps:
- Go to F11: Features → Inventory Features.
- Enable options like:
- Maintain accounts with inventory: Yes
- Use tracking numbers: Optional
- Integrate accounts with inventory: Yes (optional based on needs)
Creating Stock Items
A stock item is any tangible product you buy, sell, or manufacture.
Steps to Create Stock Item:
- Gateway of Tally → Inventory Info → Stock Items → Create.
- Enter:
- Name: e.g., Samsung TV 32"
- Unit: Nos.
- Stock Group: Electronics
- Rate: ₹15,000 (optional)
Creating Stock Categories and Groups
- Categories and groups help organize stock items efficiently.
- Stock Group: Logical grouping of similar items.
- Stock Category: For items with similar characteristics but from different groups.
Example:
- Stock Group: Electronics
- Category: LED TVs
- Items: Samsung TV, Sony Bravia, etc.
Understanding Units of Measure
Tally supports both simple and compound units like:
- Nos. (Numbers)
- Kgs. (Kilograms)
- Box of 10 units
- Create via: Inventory Info → Units of Measure → Create
Stock Journals in Tally Prime
A Stock Journal is used for:
- Stock transfer between locations
- Production entries
- Additional cost entries
- Inventory adjustments
- It does not affect ledger accounts unless configured with additional costs.
Steps to Create a Stock Journal Entry
Process:
- Gateway of Tally → Inventory Vouchers → F7: Stock Journal
- Enter:
- Date
- Source (From location)
- Destination (To location)
- Stock item and quantity
- Additional cost if any
Example of Stock Transfer Entry
Scenario: Transfer 10 Samsung TV 32" from Main Warehouse to Showroom.
| Particulars | Details |
|---|---|
| Voucher Type | Stock Journal |
| Source Location | Main Warehouse |
| Destination Location | Showroom |
| Item | Samsung TV 32" |
| Quantity | 10 Nos |
Tally reflects the stock change in both locations.
Example of Additional Cost Entry
If transporting goods costs ₹1000, you can add that to the item cost using a ledger.
Steps:
- In Stock Journal → Additional Cost → Add Cost Ledger: Freight ₹1000
- This increases the item valuation for accurate profit calculation.
Stock Transfer Between Locations
- Stock entries make it easy to manage multiple godowns or locations.
- Use Case:
- A company has:
- Central Warehouse
- Retail Outlets
- Stock Journal transfers stock between these without affecting accounting.
Inventory Vouchers in Tally Prime
Other inventory vouchers include:
- Receipt Note: Records goods received
- Delivery Note: Records goods delivered
- Rejection In/Out: For returned goods
- Physical Stock: Updates stock based on physical count
Difference Between Stock Journal and Physical Stock
| Feature | Stock Journal | Physical Stock |
|---|---|---|
| Purpose | Internal movement | Physical verification |
| Affects Cost | Yes (if configured) | No |
| Use Case | Transfers, production | Audits, stock count |
Stock Adjustment Using Stock Journal
Used when items are:
- Lost
- Damaged
- Used for in-house consumption
- Enter such items as consumption without destination godown.
Tracking Additional Cost of Purchase
Stock Journal allows inclusion of costs like:
- Freight
- Loading/unloading
- Labor
Helps in accurate stock valuation and margin analysis.
Configuring Stock Journal Settings
Use F12: Configuration in Stock Journal to:
- Enable Godown
- Use Additional Cost Details
- Use Expiry Date/Batches if needed
Use of Narration and Reference Fields
Narrations explain the purpose of the entry, helpful for future references and audits.
Example:
Transferred Samsung TVs for promotional event at Showroom.
Generating Stock Reports
- Use Gateway of Tally → Stock Summary to view:
- Current stock
- Valuation
- Inward/Outward movement
- Location-wise stock
Stock Summary and Movement Analysis
Tally offers:
- Stock Summary: Overview of item-wise stock
- Movement Analysis: View consumption, production, sales, etc.
- Essential for inventory decision-making.
Impact of Stock Entries on Financial Statements
If accounts are integrated:
- Stock value affects Balance Sheet
- If not integrated:
- Stock entries impact only inventory, not financials
- Choose based on business needs.
Common Errors in Stock Entry and How to Avoid Them
| Error | Solution |
|---|---|
| Missing Godown | Enable and configure godown in settings |
| Wrong quantity entered | Verify against source documents |
| Additional cost not added | Add via Additional Cost in Stock Journal |
| No impact on ledgers | Enable inventory–account integration |
Best Practices for Stock Management in Tally Prime
- Regularly verify physical stock
- Maintain accurate unit and group classification
- Use narrations for clarity
- Train staff on correct entry procedures
- Periodically review stock reports
Frequently Asked Questions (FAQs)
Q1. Is Stock Journal mandatory for inventory management?
A: Not mandatory, but essential for internal tracking and valuation.
Q2. Can I link stock with accounts?
A: Yes, by enabling account-inventory integration.
Q3. What happens if I don't record additional cost?
A: Item valuation may be inaccurate, affecting profit margins.
Conclusion
Stock entries in Tally Prime form the backbone of efficient inventory management. Whether you are transferring stock, recording production, or updating physical count, proper use of stock journals and related vouchers ensures your inventory is always accurate and up to date. With advanced features like additional cost tracking and multi-location management, Tally Prime empowers businesses to manage their inventory with confidence and precision.
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