Units of Measures

 

Introduction

Almost every business has stocks and stocks have units. For example, you are in a business of Furniture and Household items. Your stock items would be table, chair, sofa etc. and the unit of measure will be numbers. You may say I have a stock of 25 tables and 25 is a number. In the same way, you may have rice, sugar, tea or any other eatable items. In this case, you will say I have a stock of 30 KG of rice today and the unit of measure is KG. In Tally, you can create different units of measure with whatever name you want. So, if your business is somewhat different then don’t worry at all. You can do all of that in Tally.

Note:

·   You need to create Units of Measure for creating Stock Items in Tally. Without this you are not able to enter the quantity and rate in Tally.

·   You cannot change the unit of stock item once you have created entries. You have to delete all the entries to change the unit.

To create a unit of measure in Tally, you need to follow the steps.

First of all, from Gateway of Tally

·   Go to Inventory Info.

·   Go to Units of Measure

·   Select Create

Create Unit of Measure (No. – Numbers) as shown in the picture below


This unit of measure will be used while creating stock items. In short we attach Stock Groups and Stock Items and have units for the stocks in Tally via Units of Measure in Tally.

How to Create Stock Items and Stock Groups in

Tally

Stock Items and Stock Groups in Tally are very much important for maintaining stocks in Tally. It is very efficient and effective way to calculate all major aspects of stocks in any kind of business. Tally helps with some of the awesome features about stocks like: 

·         Quantity

·         Rate

·         Value

·         Consumption

·         Gross Profit

·         Opening Balance

·         Closing Balance

·         Stock Valuation methods such as FIFO, LIFO, Average Price and many more

These details are very helpful for a business to make good decisions.

Note: If you want to master in Tally, creating stock items and stock groups is one of the important functions of Tally.

Stock Item

As the name suggests, a stock item is a single item of your stock. For example, if you have a furniture business, your stock items may be table, chair, bed, mirror etc.

Point to Remember: Put the % to 0 in the taxation ledgers and instead set the percentages in the stock items and sales ledgers

So, you have some of the below things in your shop right now.

·   Bed

·   Tables

·   Mirrors 

Then, it can be said that your stock consists of three furniture items. If you have any other business, you can create simple stock items and manage your stock efficiently in Tally. Now, let’s see how you can create stock items in Tally. It is very much easy and simple to create all of them. But before create the stock items you have to create its units. There are also different types of units as different types of items as if you have items like mobile, TV, computer then the units will be in Numbers but if you have items as Rice, Nuts etc. they are in KG unit. Similarly, if you have items like Oil, Milk it comes under liters. So before enter the record of stock items in Tally, you have to add the unit. For this,

·  From Gateway of Tally

·  Go to Inventory Info.

·  Go to Units of Measures

·  Select Create


Press C from the keyboard or simply press enter to open the unit creation screen. The unit creation screen will open. The other two names as Display and Alter will disable because still there is no unit in your account. If you create any single unit, the other two functions will be activated. 


Now, enter here unit as No. (Number), Kg etc. Here we have furniture so we enter here No. Write the full name as number and enter the decimal place (Both are optional, if we do not want to enter then there will be no issue)


Now, go back to the Inventory info. screen and choose Stock items. Under Single Stock Item, select Create to open the creation window for enter the record. A window for enter the record will open


Create the stock item for 25 Bed for ₹15,000 per unit.


Likewise, create stock items for 50 tables for ₹400 per unit


and 55 mirrors for ₹200 per unit as shown in the picture


In the same way for household items we create as Sugar, Rice and Tea. For these the units will be KG or gram. As here we use KG. Did you notice the Units option while creating Stock Items? That is the Units of Measure. This is how you can create Stock Items in Tally. Now, look at Balance Sheet. 


After click on the Current Assets the Group Summary will be as under:


When you click on Closing Stock, it shows all the details. As:


It is the detail which you had entered in your stock. The Grand Total will be the same as shown in Current Assets in your Balance Sheet. Now let’s create Stock Groups.

Stock Groups

Stock Groups in Tally further divides stocks in different groups for better understanding of stocks. This will give us a much better look and understanding of stock items and stock groups in Tally. Even in the future, if we look at the stock items and stock groups in Tally, we will know the differentiation easily.

·    From the Gateway of Tally

·    Click on Inventory Info.

·    Select Stock Groups 


Click on Stock Groups or press G from keyboard. We have created 6 different Stock Items as 3 furniture items and 3 household items which are: Bed, Table, Mirror, Sugar, Rice, Tea. If we want to group the above stock items, they will be like this. Bed, Table, Mirror will come under a Group called Furniture. Sugar, Rice, Tea will come under Household Items. By doing this, it will be easy for anyone to search the item easily. You will also have a good understanding of different types of stocks you have on the basis of Grouping. Currently, we have all the items under same Stock group called primary.

Note: Primary is pre-defined Stock Group in Tally

Now, what we will do is create 2 groups which are Furniture and Household Items. Then, we will alter the stock items and assign them proper groups instead of just primary.

Let’s do this

·   From Gateway of Tally

·     Go to Inventory Info

·  Go to Stock Groups

·  Select Create under Single Stock Group

·  Then create 2 stock groups as shown in the pictures below


The other group will be

Now, as we have created two different stock groups, you have to do one last thing and that is to alter the stock items and assign them the groups, so we can form combination of stock items and stock groups in Tally. So, again:

·   From Gateway of Tally

·   Go to Inventory Info.

·   Go to Stock Items

·   Select Alter under Single Stock Item

The list of created stock items will display



Click the first item to assign the group


This time select Furniture instead of Primary in the Under section. Press enter for the remaining part and save it


In the same way select each item and save it within a particular group


Now, the next item is Rice. As it is not a furniture so its group will be Household Items


In this way assign every item to a particular group. We have grouped the stock items and now it is very easy to find different stock items with the help of groups. This is the best way to use Stock Items and Stock Groups in Tally. Now, if you see the detail, the items will look in two groups


If further press enter to see the detail, the items will see in that particular group


You can also see the video regarding "Units of Measures" 



Recommended Articles

Comments

Post a Comment

Popular posts from this blog

TDS on Salary – Entry in Tally

Image
  Introduction TDS is Tax Deducted at Source. TDS is the amount of tax which is deducted by the employer from the taxpayer and is deposited to the Income Tax Department on behalf of him/her. The TDS rates are set on the basis of the age and income of different individuals. TDS or Tax Deducted at Source is a specific amount that is reduced when a certain payment like salary, commission, rent, interest, professional fees etc. is made. The person who makes the payment deducts tax at the source while the person who receives a payment/income has the liability to pay tax. It lowers tax evasion because the tax will be collected at the time of making a payment. Note: TDS is nothing but advance payment of income tax. When the TDS applied When you get your salary, TDS is deducted from your salary. Let’s for simplicity assume that the TDS on your salary is ₹20,000 and you are applying for the refund of the TDS because your income i.e. your salary is under the base limit for income tax wh
Read more

Post Dated Cheque (PDC) Management

Image
  Introduction Post Dated Cheque is an essential part of today’s business world. For a better financial planning and fund management PDC cheque is a must tool to survive in a tight financial conditions of a competitive world. A cheque in which a future date is written on its face is called Post Dated Cheque or popularly known as PDC. PDC can be issued to your suppliers and can be received from your customers. Normally Post-dated cheques are presented on the date of Cheque and booked or accounted on the same date. If you have a large number of PDC to manage then it is annoying for accountant to keep track of cheques. Tally ERP 9 take charge of the PDC Management for you and let you do a tension free accounting. You can enter post-dated cheques into receipt voucher, payment voucher and contra vouchers. Benefits of Post-dated Cheque Transactions 1.    You can enter the cheque into tally immediately after receiving or issuing it. 2.    You can mark a cheque as post-dated which wi
Read more

Personal Accounts in Tally

Image
 Introduction You can easily maintain personal accounts in Tally. To maintain personal accounts in Tally is very easy and simple. It is much faster than maintaining accounts for a company. The reason is that personal accounts are comparatively very small and involve only a few amounts of entries. Now compare that to a fully-fledged company which is selling products and includes all kinds of accounting entries and on the top of that, there is GST accounting entries too. But when you maintain personal accounts in Tally, there is generally no GST involved and you need to just focus on your balance sheet. So, let’s get started step by step. Maintain Personal Accounts in Tally When you have to maintain personal accounts in Tally, you should mainly focus on balance sheet. There is a specific reason for that. In personal account, there is no business account involved because it is your personal accounts. Therefore, there is NO need for a Profit and Loss Account. If you have a business, It
Read more