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 -
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General Purpose
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Option |
Functions |
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Option to show zero-valued Transactions |
By enabling this option, the zero value entries or transactions will appear in the stock register. |
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Separate and Integrate books for accounts and Inventory |
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Storage and Classification
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Options |
Functions |
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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. |
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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. |
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Option to show different Stock Categories |
Enable this option if you want to create and sustain some categories of stock. |
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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. |
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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. |
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Order Processing
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Options |
Functions |
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Maintain different job orders |
Enable this option, to generate job work or in order. |
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Maintain Purchases order |
Enable this option if you want to utilize it to pre-close a purchase order and to make a purchase order |
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Maintain sales order |
Enable this option, to produce sales orders |
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Invoicing
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Options |
Functions |
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Invoice options |
This option enables you to create invoices both for sales and purchases with the format for quantity, price, GST, etc. |
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Incorporate credit notes into your invoice |
This option will enable you to generate credit notes in invoice mode |
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Incorporate debit notes in your invoice |
This option will enable mode you to generate debit notes in invoice mode |
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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. |
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Enable the use of debit and Credit notes in books of account |
This option enables to use of debit and credit notes. |
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Purchase Management
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Options |
Functions |
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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. |
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Sales Management
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Options |
Functions |
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Use multiple price levels |
This option enables you to know various price levels. |
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Other Features
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Options |
Functions |
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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. |
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Use material in and out vouchers |
This option will enable you to keep track of material consumption throughout the manufacturing process. |
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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. |
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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 -
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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.
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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.
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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.
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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.
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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.
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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.
