Inventory Vouchers in Tally

 

Introduction

Inventory management is one of the toughest business activities for small and growing businesses. Not only do you need to physically care for the stuff but you also have to make sure that you don’t run out of some items or have too much of some other items. Tally provides outstanding features that make inventory management a lot easy. With not too much effort, you can get your inventory management system up and running. As you record sales and purchases, Tally will keep track of your inventory.In this Tally Tutorials, you’ll learn how to maintain inventory in Tally using inventory masters such as stock categories, stock groups and stock items. Let’s start..

Gateway of Tally, press ALA:


Select the ledger which was used in the voucher and alter the voucher from the list. In a similar way, you can see all the vouchers which you have passed in Tally. Instead of ALA, press ALD:


and then select the ledger for which you want to see the vouchers. Inventory Vouchers or Manufacturing Vouchers in Tally. Inventory vouchers are specifically created for manufacturing businesses which are involved in manufacturing of raw materials and ultimately the production of finished goods. Basically whatever the stock that will be used and whatever the products that will be produced are created as stock items in Tally. For example, if you want to manufacture currency notes, you would require paper, ink, water. The finished goods will be the currency notes. Therefore, the stock items will be paper, ink, water for the currency notes.

Let’s Take an Example

I want to make bread. For that I will need Raw Materials. At the end the Finished Goods will be the Bread.

So, here is a list of raw materials.

·       Raw Materials – Flour, Water, Spices. These are the items that will be processed and at the end bread will be produced.

·       Finished Goods – Bread.

For simplicity and better understanding, I have taken only 3 items for raw materials. Also I will not include any kind of expenses. 

There may be other expenses like labor, processing etc. and you can add them if you want.

Process and Understanding inventory vouchers in Tally

From Gateway of Tally, go to Inventory Vouchers

After pressing the button inventory vouchers, you will see the Inventory Voucher Creation screen in Tally. It looks like in the image below.


Note: Accounting name of inventory vouchers is Stock Journal.

You can see it in the image above in the top left corner in pink colour. The title of the screen says Transfer of Materials. This simply means you are going to transfer materials from one department to another department. It can be manufacturing department to production department. On the LEFT side, there is Source (Consumption) window. On this side you have to enter Raw Materials which are required to produce the Finished Goods. Therefore the name of the window is Source (Consumption) because it consumes the materials or goods and it gets produced in the next half of the window. On the RIGHT side, there is Destination (Production) window. This side is where you have to enter what finished goods actually are produced in your factory or department. The name of this window is Destination or Production thus states that a particular unit or product is produced in this department.

Note: Stock Journals are used to create mostly manufacturing or assembly entries in Tally. You can see your stock again in Stock Summary from Gateway of Tally.

Creating Inventory Vouchers in Tally

Now let us look step by step on how to create inventory vouchers. From that screen we will enter the raw materials and finished goods. Here, bread was produced as a finished product and the raw materials include flour, water and spices. We will enter raw materials first in the left window and their respective rates and finished product in the right window along with its rate. Before this you have to enter all the three items i.e. Flour, Water, Spices and Bread in your stock items.


 After entering all the above items, press enter and your entry will be completed. Now, if you see Stock Summary from Gateway of Tally


You can see both the bread as well as the quantities of flour, spices and water.


You can clearly see the quantity as well as the value of the Bread. Apart from that you can see the quantities of raw materials which are left in quantity.

You can see the Video regarding "Inventory Management" 


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