Creating Inventory Masters in Tally.ERP 9

Lesson Objectives
On completion of this lesson, you will be able to understand

• The basic functions of the Tally.ERP 9 Inventory System
• Creating and maintaining Inventory Masters
• Creating and maintaining stock details
• Creating stock items and entering opening balances

 Inventory accounting includes recording of stock details like the purchase of stock, the sale of stock, stock movement between storage locations or godowns and providing information on stock availability. Tally.ERP 9 makes it possible to integrate the inventory and accounting systems so that the financial statements reflect the closing stock value from the Inventory system. The inventory system operates in much the same way as the accounting system.

• First you set up the inventory details, which is a similar operation to creating the chart of accounts although, in this case, there are no pre-defined set of stock groups.
• Second, you create the individual stock items, which is similar to setting up the ledgers.

In a newly created company the Inventory Info. menu comprises of four types of Masters, viz. Stock Groups, Stock Items, Units of Measure and Voucher Types.

Go to the Gateway of Tally > Inventory Info.
The Inventory info. menu is displayed as shown:

 The above Inventory Masters types are explained in detailed in the following sections.

• Units of Measure

 Let us take the example of Indus Enterprises that sells Televisions and Music Systems.
Given below is the structure of items being sold.

The televisions are sold in numbers. Hence, the Unit of Measure will be Nos.
Indus Enterprises has two Godowns, the Bangalore Godown and the Mumbai Godown.
The grouping structure in Tally.ERP 9 is as follows:
Stock Group
1. Televisions (main stock group)

• Sony TV – stock group under Televisons
• Philips TV – stock group under Televisons
• Videocon TV – stock group under Televisons

2. Music Systems (main stock group)

• Sony Music Systems – Stock Group under Music Systems
• Videocon Music Systems – Stock Group under Music Systems

Under the stock group Televisions, let us create stock groups based on the different brands being sold viz. Sony, Philips and Videocon. This helps to find the total sales of a particular brand of televisions at any given point of time. In order to compare the total sales of the 29 and 25 inches televisions respectively, Tally.ERP 9's feature of Stock Categories for parallel classification can be used.
Experiment Creation of Inventory Masters in Indus Enterprises.

Stock Groups
Stock Groups are provided to help in the classification of stock items. Classification is done based on some common behaviour. Grouping stock items makes it easy to identify and report them in the statements. For example, items of a particular brand can be grouped together so that you can get the inventory details of all the items of that brand.

Creating Stock Group

• Create the Stock Group – Television under Primary. 
• Go to the Gateway of Tally > Inventory Info. > Stock Groups > Create (under the Single Stock Group).

Ensure that the screen appears as shown below:

•  Press Y or Enter to accept the screen.

Similarly, create Music Systems under Primary.

ii. Create Sony TV under Televisions.
Press Y or Enter to accept the screen.

Practice Exercise
Create the following Stock Groups in the similar manner