Creation of stock item

Creating a Stock Item >

Gateway of Tally > Inventory Info > Stock Item > Single Create

Name

Give the name of the stock item. Here we wish to create an item DVD RW 4.5 GB sony make

Alias

This is for alternative names of stock items.

Under

Specify the group to which it belongs. The different that we had created is Computer accessories .

Use Alt+C to create a parent if you do not have the item you want in the list.

Units

Give the unit of measurement of the item here. You would normally use this unit for trading in this item. Select Nos from the popup list. Please refer to the section 'Unit of measure' for explanation of units. As usual, use [alt]+[C] to create a new unit.

Advanced Users and administrators

The unit 'Packs of 10 Pcs' is a compound unit. Tally has the concept of simple and compound units. To create a compound unit, you would first create its components as simple units and then give their relation. In this case, 'Nos' and packs were created as simple units. Then a compound unit 'Packs of 10 Nos' was created separately. While creating a compound unit, if the cursor goes straight to the field 'Symbol' and you find the field 'Type' stating 'Simple', backspace to the 'Type' field to select 'Compound'.

Rate of VAT (Sales Tax/ Duty) (e.g. 12.5 or 4)

Give the rate of tax applicable for the item. The rate specified here would be picked up when invoicing, if you selected the method of calculation as Tax Based on Item Rate for your relevant accounting ledger account. Typically, this accounting ledger account would be 'VAT Account' under the Group Duties & Taxes. In such cases, the VAT or duty in invoice entry will be automatically calculated.

Opening Balance

If you already have stock of this item at the time of creating its account in Tally, give its balance particulars, i.e., quantity, rate, unit and amount.

Stock group And Stock Item creation

To create new stock group go to Gate way of tally ----> Invetry info ----> stock group ---> create
you will see above screen,
Enter stock group name
Can be quantities of items added give YES
Then Accept

Your stock group created.

Now we will create Unit of measure
To create new Unit of Measure go to Gate way of tally ----> Invetry info ---->units ----> create
you will see below screen,

Ledgers under which group?

It is very important while creating ledgers where ledgers to be placed under which group, The following are the common ledgers under the specified groups

1 Sales accounts group Sale @ 4% vat, Sale @ 12.5 %, sale @ 1% etc
2 Purchase accounts group purchase @ 4% vat, sale @12.5%, Sale @ 1% etc
3 Duties & tax account group Input tax @ 4%, output tax @4%, Input/ouput tax @12.5%
4 Sundry debtors group All clients accounts like Abc industries, Industrial traders etc.
5 Sundry creditors group All supplier accounts like Xyz tools, Abc Enterprises Etc.
6 Expenses group Telephone, Petrol, Rent, transport Etc.
7 Bank accounts group SBI, ICICI Bank, Axis Bank, City bank Etc.

If you opted for Tally for accounts only than it is ok, If you opted for Tally Accounts & Inventry than you have create
1 Stock group
2 stock categories
3 Stock items
4 Unit of measure
and modify voucher type as per your requirements.

Opening Balance

(As on date of beginning of books)

If yours is an existing company whose books you are putting onto Tally, this would be applicable in the following circumstances:

If the ledger is an asset or a liability and if it has a balance in the account as on the date of beginning of books in Tally.

Tally recognises normal accounting principles of debit balances for Assets and credit balances for Liabilities. Of course, it accepts the reverse for obverse balances. Revenue accounts normally do not have balances. Tally, however, permits you to give balances even for such accounts - You may be transferring your books on to Tally in the middle of the year and may not have closed them in your earlier system. Hence, you may specify whether the balance is Debit or Credit. Simply D or C would suffice.

Tip to speed up data entry: You may use Ctrl key +A at the field following which the information in other fields do not need to be changed.