INVENTORY MANAGEMENT WITH TALLY ERP9

Manage, Track and Optimize Inventory:-

Inventory is the total amount of goods and/or materials contained in a store or factory at any given time. Store owners need to know the precise number of item they hold in order to place orders or control losses. Factory managers need to know how many units of their products are available for customer orders. 

Some Important features available in the Inventory module are:-

Multi Location Stock Control:- In Tally.ERP9 keep track of your stock at a single or multiple locations.

Comprehensive Recording of Stock Movement: - Record inventory transactions easily and comprehensively using goods Receipt Notes, Delivery Notes, Stock transfer Journals, Manufacturing Journals as well as Physical Stock Journals. All stock movements are fully recorded and maintained in stock registers.

Management Reports:  The Movement Analysis report gives the party wise details of goods bought and sold and helps identify good and bad business partners. Stock Query is a unique single sheet report that gives information on stocks at different locations as well as total stock in hand.

Aging Stock Analysis: This report identifies old stocks to aid in decisions relating to their quick disposal.

Batch wise or lot wise Inventory with Expiry: You can use the concept of Batches or Lots to track stock at the batch level, with expiry date support.

Re-order Levels: Know your stock order position with the comprehensive Order Status reports in Tally.ERP9, Specify reorder levels and minimum reorder quantity in absolute quantities or based on previous consumption. In Tally ERP9, you can configure and use the following depending on your requirement.

Stock categories: Stock categories offer a parallel classification of stock items. Like stock Groups,

Classification  is done based on similarity in behavior . The advantage of Categorising  items is that you can classify the stock items  (based on functionality) together – across different stock group , which will enable you to obtain report on alternatives or substitutes of a stock item.

Multiple godowns: Locations /godowns are places where stock items are stored. You can monitor the location wise movement of stock by creating multiple godowns. Tally erp 9 permits the creating of any number of godowns , under groups and subgroups to match the structure you need.

Stock transfers to Locations/ godowns: In Tally erp.9, Stock transfers are recorded using stock journal Vouchers and are used to make stock adjustments. For example, this can be used to record any increase or decrease in stock due to shortage or wastage of stock , or to record inter godown transfer of stock, Assembling or disassembling . It can be used to reflect the status of godown- wise stock. Additional  costs incurred during stock transfer can also be tracked . this adds up to the value of stock but does not get reflected in the accounts.

Stock query by stock group, or stock category: Stock query is a statement which provides all the information related to a particular stock item such as:

• ·        Closing balance and its value.
• ·         Cost price and standard selling price of the product.
• ·         Last purchase details such as date,party,quantity and rate.
• ·         Information about last sales – date ,quantity, rate, sales party etc.
• ·         Warehouse details.
• ·         Stock items under similar categories etc.

In Tally.ERP 9, this statement can be generated either on the basis of a stock group or a stock category.

Multiple stock valuation methods: Tally ERP 9 allows you to view the effects of different stock valuation methods on the closing stock value. You can also view a columnar display of different stock valuations. And each stock item can be set up to have a different stock valuation method. In some instances, a particulars method of valuation may be required, for example to assess the replacement value or saleable value of stock. Tally ERP9 displays stocks in any or all the valuation methods dynamically and simultaneously, without any complicated procedure.

Multiple units of measure: Stock items are purchased or sold on the basis of quantity. The quantity is measured in units. In Tally ERP 9, you can define these quantities as multiples of a unit of measurement , for e.g. dozens, gross, carton, etc. For example , you can buy 20 boxes of pens with each box containing 15 pens. you can then pack them into a single carton and sell it as one carton containing 300 pens. 


Alternate units of measure:Stock items can be purchased as one unit of measure and sold in a corresponding unit of measure , for e.g. you can buy paint in bulk in 50ltr barrels , repack and sell the same in 1 ltre tins.
 Tracking through receipt note/ delivery notes/rejection inwards/rejection outwards : Tracking number is the reference link between transaction . for e.g. if tracking number is selected in the receipt note , the details of the items are automatically displayed in the purchase invoice.

Additional costs incurred on purchase:In many situations, more than one item is purchased and the expenses incurred is charged as a lump-sum amount. However, to arrive at an effective cost for each of the items, the additional costs of purchase option is used. This process is automated and allocation of the expenses to a stock item can be done on a predefined basis.Expenses posted using additional cost on Purchase features, do not affect the relevant nominal ledger accounts but update the cost of the stock item, i.e. the additional costs incurred are updated without actually affected accounting , only the stock value goes up.

Movement analysis: Party-wise/ Item-wise/ Stock Group-wise: Movement analysis shows the analysis of only those inventory transactions which are integrated with the account , i.e. inventories which are also recorded in the books of accounts.

Movement analysis is used for comparative studies and give an insight into the flow characteristics of the stock in an organisation.

Price lists:Price lists are useful for orders and invoices. An up to date price list helps in decision-making even at the lover levels of the organisation and quickens the sale process. Tally ERP 9 assists in creating quantity based pricing with a complex discount structure. Price Lists are available only for inventory items and hence the feature is available only if inventory and invoicing are activated for the Company.

You can have one or more price lists if required. this generally applies when you have different price structures / levels for different purpose viz. different groups of customers requiring different discounts or dealing in different products. 

Sales and purchase order processing: when an order is received from a customer for the supply of goods, the details of items, quantities, date of delivery, etc., are given along with the Sales Order Number. Once these goods are delivered, this Sales Order is tracked for the order details either in the delivery note or in the sales invoice.

When the order is placed with the suppliers for the supply of goods, the details of items, quantities, date of receipt etc., are mentioned along with the Purchase Order Number. Once these goods are received, the Purchase Order is tracked for the Order details either in the receipt note or in the purchase Invoice.

Define and use Bill of Materials:  A Bill of Materials is a list of constituent items along with quantity details that can be allotted for the manufacture of a certain product, by –product or equivalent. This facilitates the automatic reduction in stock of the item, This process of listing the items that make up another item is made possible in Tally by enabling the Bill of Materials facility.

 Bill of Materials (BoM) is created only for those items that are assembled in –house. For trading items, you do not need a BoM. Therefore, you need to specify a BoM at the time of creating a Stock Item or when altering its master.

 

Point of Sale (POS): Point of Sale could mean a retail shop, a check-out counter in a shop or any other location where a sales transaction takes place. The various POS equipment used in retail outlets includes Cash registers, card readers and barcode scanners. It is a computerized Cash Register which adds the sales total, computes the State Sales Tax or VAT, calculates the change from the money tended and automatically adjusts the store’s inventory.

INVENTORY ACCOUNTING & MANAGEMENT:

If you deal in goods of any type, you’ll appreciate the inventory capabilities in Tally.ERP 9, developed to cater to manufacturers, distributors, wholesalers or traders.

It lets you comprehensively record all types of inventory transactions using goods receipt notes, delivery notes, stock journals, manufacturing journals and physical stock journals, what’s more, all stock movements are fully recorded in stock registers.

   

SUMMARY

 For Manufacturers:-

1. Bill of Materials and Manufacturing Journals, to record material conversions.
2. Compound Bill of Materials support, for units that contain assemblies.
3. Mulftiple locations (godowns)
4. Excise for manufactures,including all documentation and invoice.
5. Costing for jobs. 

Distributors & Wholesalers:

1. Multiple price lists, with effects dates of applicability.

 2.Use multiple units of measure ( says Kgs & grams)

3. Dual units of measure ( say Kgs and bags, to support variations, typically seen in                          commodities.    

Traders:

1.  High speed billing, with support for POS printers. 

2.  Barcode support.

3.  Automatic application of taxes.

4.  Service billing & service tax.

5.  Integrated sales return in bills.

6.  Print bills ( and any other documents) in the customer’s language.

Common: 

  

• You can choose to de-link the computer inventory value to automatically appear in your financial statement, and enter this figure manually.
• Stock ageing reports, to identify slow and non-moving stocks
•  Invoice profitability report to keep a pulse on sales.
• Multi-currency transactions – buy and sell across the world with integrated forex gain/loss calculations
•  Physical stock take records to adjust physical  vs. actual stocks.
•  Maintain batch & expiry details.
  
  
  
  
• Simplify Inventory Management with Item-Batch Tracking:-
  
  
  Managing multiple inventory items in a multi - stock warehouse can be quite a challenge. In industries such as pharmaceuticals it becomes even more complex due to batch inventory. If an item needs to be pin-pointed due to issues such as quality, it could prove difficult especially if it has to be done physically. First, the batch would need to be identified, and then all the transactions involving that particular item would have to be traced.
  
  
  Item Batch tracking in Tally.ERP 9 solves the problem convincingly with total visibility in to the movement of a particular item from a specific batch, whether the transactions are stock inward or outward.
  
  
  Now, there’s no longer the need to sort through hundreds or even thousands of transactions- with item Batch tracking in Tally.ERP 9 it’s never been easier.
  
  
  Item-Batch tracking can be configured to deliver:-
  
  
  Stock flow: The flow of stock ranging from opening stock, goods inwards and outwards- to the closing stock, can be analyzed in terms of its quantity, for an insight to the batch-wise movement of each stock item.
  
  
  Profitability and Consumption: Item-Batch wise report shows the profitability and consumption details for each stock item, This statement is used to reconcile the closing balance.
  
  
  Sorting Method: This will help you view the report in alphabetical order, either descending or ascending.
  
  
  Navigation: This helps you navigate from one report to other stock item and batches.
  
  
  Show Profit: This helps you view the batch-wise stock item profitability.