written by | October 26, 2022

What Does Tally ERP 9 Inventory Include? What are its Benefits?

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Table of Content


Inventory management is a big challenge for small businesses as a significant part of their capital gets blocked in the inventory. It becomes a significant concern since small businesses start with a small amount of capital. Thus, Tally ERP 9 comes with inventory features that could smoothen your inventory management process.

Did You Know? Inventory accounts for almost 75% of the total working capital of a small business. 

Steps to Enable Inventory Features in Tally ERP

To enable the inventory feature in your Tally ERP 9. Here are a few steps to enable the feature -

Step 1: On the gateway of Tally, Press F11 or click on Features

Step 2: Click on Inventory and allow the required option.

Step 3: The Company operation conversion will appear on the screen after enabling the various required inventory feature. Press ctrl+A to accept the changes. The options can be disabled or enabled per the business transactions' requirement with inventory features in Tally ERP 9.

Also Read: Shortcut Keys in Tally Prime

Objectives Of Tally ERP 9 Inventory Feature

The inventory feature in Tally ERP 9 is useful to keep track of inventory movements and wastages, enabling you to improve your supply chain management. An efficient inventory management system in your entity will enable you to improve the value chain for your customers. Tally ERP 9 identifies a few of these inventory management processes. Here are a few purposes the inventory feature of the tally ERP 9 will help you with - 

  • General Purpose

Option

Functions

Option to show zero-valued Transactions

By enabling this option, the zero value entries or transactions will appear in the stock register.

Separate and Integrate books for accounts and Inventory

  • To get the sum total of inventory as on a particular date, enable this option 
  • It will provide a drill down from the Balance sheet to the stock register
  • If you wish to keep accounts and inventory separate in your books, disable this option.
  • It is quite evident that stock registers contain errors caused by the wrong classification of items of inventories. This feature enables the preparation and finalisation of financial Statment without waiting for the reconciliation of stocks.
  • Storage and Classification

Options

Functions

Prepare Batch-wise details of Inventory items

If your business produces goods in batch and you want to track inventory consumption in the batch, enable this option. 

Inventory at Multiple Godowns locations

If you have multiple places of business where goods are supplied or goods are procured. To track the movement of goods across multiple locations, enable this option.

Option to show different Stock Categories

Enable this option if you want to create and sustain some categories of stock.

Enable expiry dates for Inventory items

If you are dealing in perishable goods you may also set the expiry dates the for the perishable goods batch. Enable this option if you wish.

Maintain Separate actual and billed quantity columns

This option will enable you to keep track of any inventory item being lost in transit. This option will keep track of any quantities that varied from those delivered or received.

  • Order Processing

Options

Functions

Maintain different job orders 

Enable this option, to generate job work or in order.

Maintain Purchases order 

Enable this option if you want to utilize it to pre-close a purchase order and to make a purchase order 

Maintain sales order  

Enable this option, to produce sales orders

  • Invoicing

Options

Functions

Invoice options

This option enables you to create invoices both for sales and purchases with the format for quantity, price, GST, etc.

Incorporate credit notes into your invoice 

This option will enable you to generate credit notes in invoice mode

Incorporate debit notes in your invoice 

This option will enable mode you to generate debit notes in invoice mode

Invoice Purchases in Vouchers

If you don’t want to pass separate data entry for books of accounts for every purchase, enable this option. This option auto-populates the details of the invoice of purchase into the books of accounts.

Enable the use of debit and Credit notes in books of account

This option enables to use of debit and credit notes.

  • Purchase Management

Options

Functions

Track additional costs of Purchase

To get the breakup of purchase costs, enable this option. You won’t be required to make adjustments in the ledger.

  • Sales Management 

Options 

Functions

Use multiple price levels

This option enables you to know various price levels.

  • Other Features

Options

Functions

Use Cost tracking for stock items

This option enables you to analyze the costs of various products in the manufacturing process. It also keeps track of various costs incurred on each manufacturing process like assembly, testing, etc.

Use material in and out vouchers

This option will enable you to keep track of material consumption throughout the manufacturing process.

Use Rejection inward and outward notes

If you want to keep the rejected inventory separate then enable this option rather than common debit and credit notes.

Use Tracking Numbers

This option enables you to keep track of purchases and sales. 

Also Read: All About Creating A Company In Tally.ERP 9

The Benefits of Efficient Inventory Management Software Integrated with Tally ERP 9

Tally ERP 9 provides the inventory features to manage the various items of inventories. Let us discuss the various benefits of efficient inventory management when integrated with an ERP like Tally ERP 9 for an entity -

  • Know the inventory levels at various locations

With an inventory management system integrated with ERP, You can track the movement of goods and place an order where the inventory touches the danger level. It enables you to track the order process from accounting to finance, and from procurement to manufacturing. With the centralized integrated ERP system, you can place orders for inventory procurement in bulk for multiple locations and save money from discounts. 

  • Automate manual tasks

Movements of goods these days are tracked by barcode and QR codes. As and when the barcodes have been scanned the information in centralized ERP software gets populated. These efficient processes reduce the risk of manual errors.

  • Real-Time Data

ERP software like Tally could give you the information in real-time for multiple business locations which could otherwise not be possible with manual tracks of information. You could access the information from the centralized server from anywhere with any device.

  • Helps in forecasting Demand 

With real-time information, demand for the products could easily be forecasted and be prepared with the demand of the market and customers. ERPs could also provide you with trends and statistics to forecast inventory requirements. 

  • Supports uninterrupted production

ERPs to predict the consumption patterns for the production of an entity. This prediction and other statistics can be used to maintain a minimum level of inventory for uninterrupted production. When the stock level hits this minimum level of inventory, an immediate inventory order can be placed. This practice ensures that the entity could save money on carrying the buffer inventory in the godown. 

  • Harmonise multiple inventory locations

You can get an overview of the stock level on your multiple warehouses, retail stores as well as distribution centres and you could establish good coordination with your suppliers. 

Also Read: Know About Receipts and Payments Report in Tally

Conclusion

Inventory features are a very useful tool to manage your items of inventory on daily basis. These features enable you to have strong control over any leakages and wastages from the procurement of inventory to the production of finished goods. There are also features to establish controls over the movement of finished goods. Control over your business processes ensures that there is coordination and synergy over resources to produce the best value for the customers. 

It also ensures that the resources are not parted for the personal benefit of the employees or discourage petty theft. Alright hope you enjoyed reading it so far, we have discussed every inventory feature and the advantages of using an integrated ERP solution for inventory management followed by a conclusion statement. 
You can use the Biz Analyst application to manage your business effectively. It syncs with Tally data making it easy to access even if you’re offline or on the go. You can manage the accounts, create ledger entries, access business reports, and more to keep your business on the right track.

FAQs

Q: What are the various purposes that the inventory features help businesses?

Ans:

Following are a few purposes the inventory feature of the tally ERP 9 will help you with - 

  • General Purpose
  • For Storage and Classification 
  • Order processing purpose
  • Invoicing 
  • Purchase Management 
  • Sales Management 
  • And Other features

Q: What are the various advantages of using ERP integrated software for inventory management?What are the various advantages of using ERP integrated software for inventory management?

Ans:

Following are various benefits of using an ERP integrated system for inventory management -

  • Know the inventory levels at various locations
  • Automate manual tasks
  • Real-Time Data
  • Supports uninterrupted production

Q: Which type of software is Tally?

Ans:

Tally ERP has been a unified business management software and accounting software from Tally Solutions Pvt. Ltd. in India.

Q: What are the steps to enable the inventory feature in Tally ERP 9?

Ans:

To enable the inventory feature in your Tally ERP 9. Here are a few steps to enable the feature -

Step 1: On the gateway of Tally, Press F11 or click on Features

Step 2: Click on Inventory and allow the required option.

Step 3: The Company operation alternation will appear on the screen after enabling the various required inventory feature, press ctrl+A to accept the changes. The options can be disabled or enabled as per the requirement of the business transactions with inventory features in Tally ERP 9.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.