Recording the inventory include recording purchase and sale of stock, stock movement between two or more godown / location and providing information on availability of stocks with each location, with the help of Tally ERP software it is possible to integrate the inventory and accounting functions in the financial statements reflecting the closing stock value from the inventory system into financial system.
The inventory function is very similar to accounting systems in Tally ERP software. In Tally ERP ERP accounting system pre-defined groups have been provided, but in inventory system no such pre- defined stock groups or items have been provided.
Every individual stock items, behaves similar to a ledger account, where in the inwards, outwards and balance is recorded during the transactions.
Two functions are very similar in" Tally" ERP software.
In Tally ERP gateway under Inventory Info., you will find
Integrate Accounts with Inventory:
If we set it to Yes the closing stock value displayed in the profit & Loss account is based on the stock summary. If you set this to No the closing stock value given in the Profit & Loss Account can be a self calculated figure. (i.e.:- we can specify our own stock value)
Similar kinds of items have been grouped under single group, these are provided for the purpose of classification of stock items. Grouping of stock items helps us to identify and locate the movement of any item.
Stock item means those items in which any company is dealing for trading or manufacturing purpose. In accounting systems ledgers are used to record debit and credit similarly items are used to record inward and outward movements. Therefore, Stock Items behaves in the similar manner as ledger behaves in accounting system.
Stock categories help us to classify different items of similar behaviour, it is also an important tool for classification of different Items. The categorizing of items helps you to classify stock items (based on functionality) together ‑ across different stock groups.
For any business organisation godown or different location plays important role in determining the locations of stock in the form of raw material or finished goods, with the help of godown we can obtain movement of each stock located in each godown, and also reports on movement of items from one godown to another godown.
Every Stock Items needs to be measured in some kind of units like rice >> in kilogram, Oil >>> litter, Cloth >> meter etc. Units can be created as per the requirement of organisation, units can be simple or compound. Two units linked together forms a compound unit, like 12 pieces = 1 dozen. Decimal place can be used keeping in view the requirement of business.