Accounting in Tally.

ERP 9
Create your company and masters (bank ledgers, party master, cost centre ledgers or employee ledger), as required.

Introduction to Creating Masters

Groups
Groups are collection of ledgers of the same nature. Account groups are maintained to determine the hierarchy of Ledger A
reports. Using this you can generate reports, which are meaningful as well as compliant with laws.

At the highest level, accounts are classified into Capital or Revenue – and more specifically into Assets , Liabilities , Income

Tally.ERP 9 provides you with 28 pre-defined Groups . Of these 15 are Primary Groups and 13 are Sub-Groups . You can als
classified to an unlimited level to give a virtual accounting tree. The lowest level would be the Ledger Account. All Voucher
group the Ledger accounts under the required Groups at the time of creating the chart of accounts or you can alter them a

Tally.ERP 9 has pre-defined ledgers for Cash (under Cash-in-hand group) and for the Profit & Loss A/c (under primary group

Default Groups
In Tally.ERP 9, there are a number of default Groups that can be used for various accounts.

Capital Account
This records the Capital and Reserves of the company. The ledgers that belong to Capital Accounts are Share Capital, Partne

Reserves and Surplus [Retained Earnings]

This contains ledgers like Capital Reserve, General Reserve, Reserve for Depreciation and so on.

Current Assets
Current Assets record the assets that do not belong either to Bank Accounts or to Cash-in-Hand sub-groups.

● Bank Accounts : Current account, savings account, short term deposit accounts and so on.

● Cash-in hand : Tally.ERP 9 automatically creates Cash A/c in this group. You can open more than one cash account, if nec

Note : An account under Cash-in-hand group or Bank Accounts/Bank OCC A/c group is printed as a separate Cash Book in t

● Deposits (Asset) : Deposits contain Fixed Deposits, Security Deposits or any deposit made by the company (not received

● Loans & Advances (Asset) : This records all loans given by the company and advances of a non-trading nature (example:
you to open Advances to Suppliers’ account under this Group. For further details, please refer to the section on Common E
● Stock-in-hand : This group contains accounts like Raw Materials, Work-in-Progress and Finished Goods. The balance cont
while creating the company. (refer to Company creation section for more details) Let us consider these options:

● Integrated Accounts-cum-Inventory : This option has a significant effect on the Balance Sheet and Profit & Loss Account.
provides a drill down to the Stock registers from the Balance Sheet. You are not allowed to directly change the closing bala
records and the account balances are automatically reflected in the Balance Sheet as Closing Stock.

● Non-integrated Accounts-cum-Inventory : If Integrated Account-cum-Inventory option is set to No, it ignores the invento
account created. This provides the facility to maintain accounts separately and inventory separately.

You are not allowed to pass transactions if your accounts that come under this Group. It allows you to hold opening and clo
only accounts for which the closing balances can be directly altered (by an authorised user only).

● Sundry Debtors : For customer accounts refer to common and possible errors in grouping of accounts section.

Current Liabilities
Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under this group
Creditors

● Duties and Taxes : Duties and Taxes contain all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and the

● Provisions : Accounts like Provision for Taxation, Provision for Depreciation and so on are recorded under Provisions.

● Sundry Creditors : For trade creditors, refer to common and possible errors in grouping of accounts section.

Investments
Group your investment accounts like Investment in Shares, Bonds, Govt. securities, long term Bank deposit accounts and so

Loans (Liability)
Loans that a company has borrowed, typically long-terms loans.

● Bank OD Accounts [Bank OCC Accounts] : Tally.ERP 9 provides you with distinct types of Bank Accounts,

● Bank OCC A/c : To record the company's overdraft accounts with banks. For example, Bill Discounted A/c’s and Hypothec

Note: An account under Bank OCC A/c group is printed as a separate Cash Book in the traditional Cash Book format and do

● Secured Loans : Term loans or other long/medium term loans, which are obtained against security of some asset. does

● Unsecured Loans : Loans obtained without any security. Example: Loans from Directors/partners or outside parties.
Suspense Account
In modern accounting, many large corporations use a Suspense Ledger to track the money paid or recovered, the nature of

● Loans and Advances (Asset) group : The Suspense Account is a Balance Sheet item. Any expense account even if it has 's

Miscellaneous Expenses (Asset)

This group is typically used for legal disclosure requirements such as Schedule VI of the Indian Companies Act. It should ho

Branch/Divisions
This maintains ledger accounts of all your company's branches, divisions, affiliates, sister concerns, subsidiaries and so on.

Sales Account
You can classify your sales accounts based on Tax slabs or type of sales. This also becomes a simple mechanism for prepara

For example,

● Domestic Sales

● Export Sales

Now under Domestic Sales open the following ledgers:

● Sales (10%)

● Sales (5%)

● Sales (exempt)

You can even open an account as Sales Returns under the group Domestic Sales to view your net sales after returns (or the

Note: Do not create customer accounts under this group. For more details, refer to common and possible errors in groupin

Purchase Account
This is similar to sales accounts, except for the type of transactions.

Direct Income [Income Direct]

These are Non-trade income accounts that affect Gross Profit. All trade income accounts fall under Sales Accounts. You ma

For a professional services company, you may not use Sales Account group at all. Instead, open accounts like Professional F
 Indirect Income [Income Indirect]
These are miscellaneous non-sale income accounts. Example: Rent Received and Interest Received.

Direct Expenses [Expenses Direct]

These are Manufacturing or direct trading expenses. These accounts determine the Gross Profit of the company.

Indirect Expenses [Expenses Indirect]

All
administr
ative,
selling or
non-
direct
expenses.

Profit & Loss Account is a reserved primary account in Tally.ERP 9. You can use this account to pass adjustment entries through

Common and Possible Errors in Grouping and Account Classification

Debtor/Creditor classification
Accounts of parties with whom your company is trading should be opened under any of the following groups (or sub-group

● Sundry Debtors

● Sundry Creditors

● Branch/Divisions

rchase account groups are meant for revenue accounts and are reflected in the Profit & Loss Account. If you open party accounts under

tion entry, you must debit an account, which can be sundry debtor, branch/division or even a sundry creditor. Moreover, other facilities

Opening two accounts of the same party

is helps you in the process of keeping the accounts of a particular group together during display and analysis. Thus you can pass both s

tly can be placed under Sundry Creditors, as that is the natural place to look for their account. Tally.ERP 9 does not restrict the accounts

two identical ledger accounts. In such cases, you may decide to circumvent by marking one account as "A & Co - S/Dr" and another "A
 are
entered
under
Liabilities
group.
For
example,
the
expenditu
re item
Rates
The group&Duties and Taxes is specifically meant to handle taxation liabilities of your company. Rates & Taxes and other stat
Taxes
under the
zations. For group
greater diversity, Tally.ERP 9 allows you to create your own groups, either as sub-groups or primary groups. Groups can be
Duties
and
Note : While it is necessary to assign every ledger to a group/sub-group, it is not essential to have your own sub-classificati
Taxes.

Pre-Defined Groups
There are twenty eight pre-defined groups in Tally.ERP 9. These groups are a part of the chart of accounts for most organiza

Out of the twenty eight pre-defined groups, fifteen are primary groups and thirteen are sub-groups.

Primary Subgroup
Groups s
Branch / Bank
Divisions Accounts
Capital Bank OD
Account A/c
Current Cash-in-
Assets hand

Current Deposits
Liabilities (Asset)

Direct Duties &

Expenses Taxes

Loans &
Direct
Incomes Advances
(Asset)
Fixed Provisions
Assets

Indirect Reserves
Expenses & Surplus

Indirect Secured
Incomes Loans
Investme Stock-in-
nts hand

Loans Sundry
(Liability) Creditors
Misc.
Expenses Sundry
(ASSET) Debtors
Purchase Unsecure
Accounts d Loans
Sales
Accounts
Suspense
A/c

Out of
the
fifteen
primary
groups,
nine
primary
groups
appear in
the
balance
sheets
that are
capital in
nature
and six
primary
groups
appear
under
Profit &
Loss
account
which are
revenue
in nature.

The sub-
groups
that form
a part of
the
balance
sheet are:
Pre-
defined Under
Subgroup
s

Bank Current
Accounts Assets

Bank OD Loans
A/c (Liability)

Cash-in- Current
hand Assets
Deposits Current
(Asset) Assets

Duties & Current

Taxes Liabilities

Loans & Current

Advances Assets
(Asset)

Provisions Current
Liabilities

Reserves Capital
& Surplus Account

Secured Loans
Loans (Liability)

Stock-in- Current
hand Assets

Sundry Current
Creditors Liabilities

Sundry Current
Debtors Assets

Unsecure Loans
d Loans (Liability)

Note: Primary groups cannot be deleted.

Create, Alter, Delete Account Groups

You can create a single group or multiple groups in Tally.ERP 9 and configure the details as per your requirement. You can a

On this page
Create account groups one-by-one

View account groups one-by-one in display mode

Alter a Group

Create Multiple Groups in one-go

Buttons in Multiple Group Creation

Display Multiple Groups

Alter Multiple Groups

Delete a Group

Create account groups one-by-one

1. Go to Gateway of Tally > Accounts Info. > Groups > Create ( under Single Group )

2. Enter the Name of the group.

3. Enter the Alias name, if required.

4. In the field Under , from the List of Groups displayed, select the parent group under which the group has to be classified

Note: Groups can be created under the group Primary , if required. To classify a group under Primary , the option Allow Ad

♦ Click F12: Configure from Gateway of Tally .

♦ Select Accts/ Inventory Info. from the Configuration menu.

♦ In the Master Configuration screen, set the option Allow advanced entries in masters .

The Group Creation screen appears as shown below:

5. Click Yes to accept the screen.

A new group created under primary will not be reflected in reports until you pass masters/transactions for that group.
View account groups one-by-one in display mode
1. Go to Gateway of Tally > Accounts Info. > Groups > Display ( under Single Group ).

2. Select the name of the group required from the List of Groups displayed. The ledger display screen appears as shown be

Note: In the display mode, group details can't be modified.

Alter a Group
The details entered in a group can be modified when required.

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ) .

2. Select the name of the group required from the List of Groups displayed.

3. Make the necessary changes in the Group Alteration screen.

4. Click Yes to save the changes.

Create Multiple Groups in one-go

You can create, edit or delete multiple groups in Tally.ERP 9.

1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple Groups).

2. Select the group category in the field Under .

3. E nter the Name of the group. The screen appears as shown below:

4. Select All Items in the field Under to create multiple groups of different categories.

Note: You can add any number of sub-groups to an already created or selected group. The sub-groups inherits the characte

A new group created under primary will not be reflected in reports until you pass masters/transactions for that group.

Buttons in Multiple Group Creation

 Shortcut Behaviou
Button Keys r

The
Parent
F4: Parent F4 Group
can be
changed

Navigate
to Ledger
L: Ledgers Ctrl+L Creation
screen

Navigate
to Cost
S: Cost
Category Ctrl+S Category
Creation
Screen

Navigate
to Cost
C: Cost Ctrl+C Centre
Center Creation
Screen

Navigate
to
O: Employee
Employee Ctrl+O Group
Groups Creation
Screen

Navigate
to
P:
Employee Ctrl+P Employee
Creation
Screen

Note: The default buttons available are Parent Group and Ledger. To display other buttons, enable features in F11: F1 Accou

Display Multiple Groups

1. G o to Gateway of Tally > Accounts Info. > Groups.

2. Click Display (Multiple Groups). The Multi Group Display screen appears as shown below:
3. Select the g roups to display from the List of Groups or select All Items to display all groups.

Note:
Select F4:
New
Parent or
press
Ctrl+F4 to
select any
other
group in
the
display
mode.

Alter Multiple Groups

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter (Multiple Groups) .

2. Select the g roup from the List of Groups . The Multi Group Alteration screen appears as shown below:

3. Change the details as required and click Yes to save changes.

Delet
e a
Grou
p

Groups can be deleted from the alteration screen. You cannot delete groups from the Multiple group Alteration mode.

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ).

2. Select the group from the List of Groups .

3. Click D : Delete .
4. Click Yes to confirm deletion.

Note: A group cannot be deleted if:

♦ The group has sub-groups.

♦ The group has ledgers classified under it.

♦ The group is a predefined master.

Create account groups one-by-one

1. Go to Gateway of Tally > Accounts Info. > Groups > Create ( under Single Group )

2. Enter the Name of the group.

3. Enter the Alias name, if required.

4. In the field Under , from the List of Groups displayed, select the parent group under which the group has to be classified

Note: Groups can be created under the group Primary , if required. To classify a group under Primary , the option Allow Ad

♦ Click F12: Configure from Gateway of Tally .

♦ Select Accts/ Inventory Info. from the Configuration menu.

♦ In the Master Configuration screen, set the option Allow advanced entries in masters .

The Group Creation screen appears as shown below:

5. Click Yes to accept the screen.

A new group created under primary will not be reflected in reports until you pass masters/transactions for that group.

View account groups one-by-one in display mode

1. Go to Gateway of Tally > Accounts Info. > Groups > Display ( under Single Group ).
2. Select the name of the group required from the List of Groups displayed. The ledger display screen appears as shown be

Note: In the display mode, group details can't be modified.

Alter a Group
The details entered in a group can be modified when required.

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ) .

2. Select the name of the group required from the List of Groups displayed.

3. Make the necessary changes in the Group Alteration screen.

4. Click Yes to save the changes.

Create Multiple Groups in one-go

You can create, edit or delete multiple groups in Tally.ERP 9.

1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple Groups).

2. Select the group category in the field Under .

3. E nter the Name of the group. The screen appears as shown below:

4. Select All Items in the field Under to create multiple groups of different categories.

Note: You can add any number of sub-groups to an already created or selected group. The sub-groups inherits the characte

A new group created under primary will not be reflected in reports until you pass masters/transactions for that group.

Buttons in Multiple Group Creation

Shortcut Behaviou
Button Keys r
 The
Parent
F4: Parent F4 Group
can be
changed

Navigate
to Ledger
L: Ledgers Ctrl+L Creation
screen

Navigate
to Cost
S: Cost
Category Ctrl+S Category
Creation
Screen

Navigate
to Cost
C: Cost Ctrl+C Centre
Center Creation
Screen

Navigate
to
O: Employee
Employee Ctrl+O Group
Groups Creation
Screen

Navigate
to
P:
Employee Ctrl+P Employee
Creation
Screen

Note: The default buttons available are Parent Group and Ledger. To display other buttons, enable features in F11: F1 Accou

Display Multiple Groups

1. G o to Gateway of Tally > Accounts Info. > Groups.

2. Click Display (Multiple Groups). The Multi Group Display screen appears as shown below:
3. Select the g roups to display from the List of Groups or select All Items to display all groups.

Note:
Select F4:
New
Parent or
press
Ctrl+F4 to
select any
other
group in
the
display
mode.

Alter Multiple Groups

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter (Multiple Groups) .

2. Select the g roup from the List of Groups . The Multi Group Alteration screen appears as shown below:

3. Change the details as required and click Yes to save changes.

Delet
e a
Grou
p

Groups can be deleted from the alteration screen. You cannot delete groups from the Multiple group Alteration mode.

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ).

2. Select the group from the List of Groups .

3. Click D : Delete .

4. Click Yes to confirm deletion.

Note: A group cannot be deleted if:

♦ The group has sub-groups.

♦ The group has ledgers classified under it.

♦ The group is a predefined master.

Manage Groups in Multiple Companies

You can manage groups in multiple companies by copying masters.

Copying masters in groups from multiple companies helps to:

● Maintain the same group structure and ledgers for businesses with subsidiaries or branches.

● Maintain uniformity of reports in all companies.

● Consolidate accounts across branches.

● Avoid re-creating masters in other companies.

Copy a Single Group

When
copying a
group
from one
company
to
another,
the
source
company
and the
destinatio
n
company
have to
be
selected.

1. Go to Gateway of Tally > Select Company > Source Company.

2. Go to Gateway of Tally > Select Company > Destination Company.

3. Go back to Gateway of Tally > Accounts Info. > Groups ( Single Group ) Alter.

4. Select a group from the List of Groups.

5. Click F3: Company to switch over to the destination company.

6. Select Yes for the option Accept? Yes or No after making alterations.

Note: If the parent of the group does not exist, you will not be able to accept the screen without selecting a parent in the d

Copy Multiple Groups

1. Go to Gateway of Tally > Select Company > Source Company.

2. Go to Gateway of Tally > Select Company > Destination Company.

3. Go back to Gateway of Tally > Accounts Info. > Groups (Multiple Groups) > Alter

4. Select a group or All Items from the list.

5. Click F3: Company to switch over to the destination company.

6. Select Yes to the option Accept? Yes or No after making alterations.

Note: Copying masters is possible only if the books of accounts are maintained on the same computer.

You can copy other masters like ledgers, cost categories and cost centres in the same way.

Note: The alternative to transferring information between companies is to use the optio

Configure Advanced Options for Groups

You can configure additional group information such as:

● Sub-ledger creation of groups

● Nett debit/credit balances for reporting

● Calculations

● Method to allocate purchase invoice

To set the advanced configuration for a group

1. Go to Gateway of Tally > Accounts Info > Groups > Create (Single Group) .

2. Select F12: Configure (Group Configuration) and enable Allow advanced entries in masters.

The group creation screen with advanced options is displayed as shown below:

In the Group Creation screen

1. Enter a name for the group.

2. Enter a group category. If a group is created under Primary you must select from asset, expenses, income or liability.

3. Select the Nature of Group .

4. Select Yes for the option Group behaves like sub-ledger? to allow groups to act as a ledger.

o When the option Group behaves like sub-ledger? is set to Yes , the ledgers grouped under the same is not displayed in d
o When the option Group behaves like sub-ledger? is set to No , all the ledgers that are grouped is displayed in detailed m

5. Set Nett Debit/Credit Balances for Reporting? to Yes to display net debit or credit balance in the report (whichever is hig

6. Set Used for Calculation (e.g. taxes, discounts)? to Yes if ledgers under this group have percentages for discounts or taxe

7. Select Method to Allocate when used in Purchase Invoice from the Allocation Methods list to allocate the expense of th

Buttons in Group Creation Screen

Shortcut Behaviou
Button Keys r

Click to
view
L: Ledgers Ctrl+L Ledger
Creation
screen
 Navigate
to Cost
S: Cost
Category Ctrl+S Category
Creation
screen

Navigate
to Cost
C: Cost Ctrl+C Centre
Center Creation
screen

Navigate
to
O:Employ Employee
ee Ctrl+O Groups
Groups Creation
screen

Navigate
to Pay
E: Pay Ctrl+E Head
Heads Creation
screen

Navigate
to
P:
Employee Ctrl+P Employee
Creation
screen

Navigate
to
Attendan
T: Attd ce/Produ
Ctrl+T
Type ction
Type
Creation
screen

Navigate
to Unit
U: Units Ctrl+U Creation
screen

Navigate
to Budget
B: Budget Ctrl+B Creation
screen
 Navigate
to
V: Vch Voucher
Ctrl+V
Types Type
Creation
screen

The default buttons available are L: Ledgers and V: Vch Types . The other options are displayed based on the accounting fe

Note: F12: Configure changes apply to all companies while changes made in F11: Features affect only the current company
e ledger), as required.
 ine the hierarchy of Ledger Accounts, which is helpful in determining and presenting meaningful and compliant
aws.

o Assets , Liabilities , Income and Expenditure .

are Sub-Groups . You can also create your own groups, either as Sub-groups or Primary groups . Groups can be sub-
Ledger Account. All Voucher entries are passed using ledgers. You can create the required chart of accounts. You can
unts or you can alter them at any time.

oss A/c (under primary group).

unts are Share Capital, Partners' Capital A/c, Proprietor's Capital Account and so on.

d sub-groups.

han one cash account, if necessary.

as a separate Cash Book in the traditional Cash Book format and does not form part of the Ledger.

y the company (not received by the company, which is a liability).

on-trading nature (example: advance against salaries) or even for purchase of Fixed Assets. We do not recommend
to the section on Common Errors.
hed Goods. The balance control depends on whether you have selected Integrated Account-cum-Inventory option
er these options:

et and Profit & Loss Account. If set to Yes, it brings the stock/inventory balance figures from the inventory records and
ectly change the closing balance of an account under this group. You are allowed to pass transactions in Inventory
tock.

to No, it ignores the inventory books figures and picks up manually entered closing stock balances from the ledger
ately.

s you to hold opening and closing balances only. Since no vouchers can be passed for these accounts, they are the
y).

accounts section.

ated directly under this group. Sub-groups under Current Liabilities are Duties and Taxes, Provisions and Sundry

nd other trade taxes and the total liability (or asset in case of advances paid) and the break-up of individual items.

orded under Provisions.

counts section.

Bank deposit accounts and so on. This allows you to view the total investments made by the company.

nk Accounts,

counted A/c’s and Hypothecation A/c’s etc.

nal Cash Book format and does not form part of the Ledger.

ecurity of some asset. does not verify the existence of the security. Typical accounts are Debentures, Term Loans, and so on.

ners or outside parties.

d or recovered, the nature of which is not yet known. The most common example is money paid for Traveling Advance whose details w

ense account even if it has 'suspense' in its name, it should be opened under Revenue group like Indirect Expenses and not under Susp

Companies Act. It should hold incorporation and pre-operative expenses. Companies would write off a permissible portion of the accou

erns, subsidiaries and so on. Tally.ERP 9 permits Sales and Purchase transactions to take place with accounts opened here. Remember, t

mple mechanism for preparation of Tax returns.

et sales after returns (or the returns may be directly passed through Journal against the specific Sales account).

nd possible errors in grouping of accounts section.

nder Sales Accounts. You may also use this group for accounts like Servicing, Contract Charges that follow sales of equipment.

n accounts like Professional Fees under this group.

fit of the company.

adjustment entries through journal vouchers. For example, transfer of profit or loss account to Capital or Reserve account.

assification

llowing groups (or sub-groups under them):

u open party accounts under these groups, it becomes difficult to pass sales or purchase voucher transactions.

or. Moreover, other facilities like bill-wise allocation and tracking will not be available unless the accounts belong to one of these group

sis. Thus you can pass both sales and purchase entries for a party account placed under Sundry Debtors. Use the classification dependin

oes not restrict the accounts from having obverse balances. Thus, a Sundry Debtor can have a credit balance depending on the state of

& Co - S/Dr" and another "A & Co - S/Cr". This will allow you to have two accounts of the same party under two groups, but you will los
Rates & Taxes and other statutory expenses should be placed under Indirect Expenses.

mary groups. Groups can be sub-classified to practically an unlimited level, giving you a virtual accounting tree. At the lowest level, of co

ave your own sub-classification of accounts; you may simply use the reserved groups for grouping your ledger accounts.

of accounts for most organizations. For example, Sales Accounts is a pre-defined group. All sales ledgers can be classified under this gro

nd thirteen are sub-groups. The user can create any number of primary groups and sub-groups.
your requirement. You can also view, alter or delete these groups.
he group has to be classified. For example, Indirect Expenses .

rimary , the option Allow Advanced entries in Masters should be enabled in the Master Configuration screen. To enable it:

sactions for that group.

screen appears as shown below:

-groups inherits the characteristics of the parent groups.

sactions for that group.

ble features in F11: F1 Accounting Feature .
own below:

group Alteration mode.

he group has to be classified. For example, Indirect Expenses .

rimary , the option Allow Advanced entries in Masters should be enabled in the Master Configuration screen. To enable it:

sactions for that group.

screen appears as shown below:

-groups inherits the characteristics of the parent groups.

sactions for that group.

ble features in F11: F1 Accounting Feature .
own below:

group Alteration mode.

ut selecting a parent in the destination company.
enses, income or liability.

he same is not displayed in detailed mode, as shown below:

ed is displayed in detailed mode, as shown below:

n the report (whichever is higher).

entages for discounts or taxes to be used in invoice entry. This is displayed while passing voucher in invoice mode and for automatic cal

to allocate the expense of the item in the ratio of the quantity or value.
based on the accounting features enabled in F11: Features .

ct only the current company.

Loans, and so on.
ng Advance whose details will be known only upon submission of the Travelling Allowance bill. Some companies may prefer to open su

xpenses and not under Suspense Account group.

missible portion of the account every year. A balance remains to an extent that cannot be written off in Profit & Loss Account. Tally.ERP

s opened here. Remember, these are their accounts in your books and not their books of accounts. Just treat them as any other party a

ales of equipment.
ger accounts.

n be classified under this group.

een. To enable it:
een. To enable it:
mode and for automatic calculations.
panies may prefer to open such accounts under Suspense Account.

ofit & Loss Account. Tally.ERP 9 does not show loss, carried forward in the Profit & Loss Account, under this group. The Profit & Loss Acc

eat them as any other party account. If you wish to maintain the books of a branch/division on your computer, you must open a separat
group. The Profit & Loss Account balance is displayed separately in the Balance Sheet.

ter, you must open a separate company. (Tally.ERP 9 allows maintenance of multiple company accounts).
Ledgers
A ledger is the actual account head to identify your transactions and are used in all accounting vouchers. For example, purchas

On this page

Predefined Ledgers

Create ledgers one-by-one

Display, Alter and Delete Ledgers

Button options in Ledger master

Current Liabilities and Current Assets Ledgers

Tax Ledger

Rounding method

Expenses and Income Ledgers

Predefined Ledgers

All ledgers have to be classified into groups . These groups and ledgers are classified into profit and loss or balance sheet.
There are two pre-defined ledgers in Tally.ERP 9:

● Cash ledger

● Profit and loss account

Profit and
Cash Loss
Ledger Ledger

The profit
The cash and loss
ledger is account
grouped ledger is
under
cash-in- grouped
under
hand. primary.

The
previous
year's
profit or
loss is
entered
as
opening
balance
of the
You can ledger.
enter the The
opening balance
balance entered is
the
as on the opening
day the profit/los
books s. It is
begin. shown in
the
balance
sheet as
opening
of the
profit and
loss
account
in the
liabilities.
 This
This ledger
ledger can not
can be be
altered deleted
and but it can
deleted. be
modified.

Create Ledgers one-by-one

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Single Ledger) . The Ledger Creation screen appears as shown b
2. Enter the Name of the ledger account. Duplicate names are not allowed.

3. Enter the alias of the ledger account, if required. You can access the ledgers using the original name or the alias name.

4. Select a group category from the List of Groups.

Note: To create a new group from this field, press Alt+C .

You can alter a ledger account to change its group classification at any time. See Importance of Grouping and Accounting Class

5. Enter the Opening Balance. The opening balance is applicable when the ledger is an asset or a liability, and also if it has a ba

Note: For an existing company,debit balances for assets and credit balances for liabilities are applicable. You can enter balance

Display, Alter and Delete Ledgers

You can alter any information of the ledger master with the except for the closing balance under the group s tock-in-hand .

Display/alter a ledger

● Go to Gateway of Tally > Accounts Info. > Ledgers > Display or Alter .

Modification of account ledgers is possible for single ledgers as well as multiple ledgers. However for multiple ledgers, all the fi

Delete a ledger

● Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > Press Alt+D .

Note: You can delete the ledger if no vouchers have been created under it. If you want to delete a ledger for which vouchers ha

Button options in Ledger master

Descripti
Buttons Keys on and
Usage

Click to
create
account
Group
G: Groups Ctrl+G from the
Ledger
creation
screen.
 Click to
create
Currency
E:
Currency Ctrl+C from the
Ledger
creation
screen.

Click to
create
Cost
S: Cost Category
Category Ctrl+S from the
Ledger
creation
screen.

Click to
create
Cost
C: Cost Center fro
Ctrl+C
Centre m the
Ledger
creation
screen.

Click to
create
Budget fr
B: Budget Ctrl+B om the
Ledger
creation
screen.

Click to
create
Voucher
V: Type fro
Voucher Ctrl+V m the
Types Ledger
creation
screen.

Current Liabilities and Current Assets Ledgers

Accounts like Outstanding Liabilities, Statutory Liabilities and other minor liabilities can be created directly under Current Liabil

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. Enable Inventory values are affected option if you maintain accounts with inventory. However, you can use this option for ac

3. Enable Cost Centres are applicable to allocate transactions to a particular Cost Center. You have to set the option Maintain c

Note: Set the option Activate interest calculation to Yes to calculation of interest automatically based on the interest rate and

Tax Ledger
Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like VAT, CENVAT, Excise, Sales and

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. The option Type of Duty/Tax is based on statutory compliance of the company. For Indian statutory, by default, Others is disp

3. Enable Inventory values affected option if you maintain accounts with inventory. However, you can use this option for accou

4. Enable Cost Centres are applicable to allocate transactions to a particular Cost Center. You have to set the option Maintain c

Note: In F11: Accounting features, set the option Activate interest calculation to Yes to calculation of interest automatically ba

5. Select the Percentage of Calculation the rate of tax e.g. 5%, 10%, 12.5% etc. You can use an automatic discount calculation f

6. On entering a percentage, a new field Method of Calculation is displayed. From the Method of Calculation , select appropri

Rounding Method
This is used to round off the duty value. By default rounding method is set blank. Once you select rounding method, rounding l

For example:

For duty value 123.33 and rounding Limit is 1,

● Downward rounding will show as 123.

● Normal rounding will show as 123.

● Upward rounding will show as 124.

For Duty value 125.55 and rounding Limit is 1,

● Downward rounding will show as 125.

● Normal rounding will show as 126.

● Upward rounding will show as 126.

Expenses and Income Ledgers

You can select the income or expenses account group to create ledgers.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .

2. Enter the name of the ledger in the Name field.

3. Select Indirect Expenses from the List of Groups in the Under field.

Note: Select Indirect Income from the List of Groups if you want to create an income ledger.

4. Set the option Inventory values are affected? to Yes if your company maintains a ccounts with inventory .

5. Press Ctrl+A to accept.

You can also enable cost centre options in expenses or income ledger. to enable Cost Centres in the Ledger Creation screen

1. Go to Gateway of Tally > F11: Features > Accounting Features > set the option Maintain cost centres to Yes .

2. In the ledger master, set the option Cost centres are applicable to Yes , if the transactions have to be allocated to a particula

Create Multiple Ledgers in one-go

You can create multiple Ledgers at a time in this mode. This will save the time of the user.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Multiple ledgers > Create .

2. S elect All Items or the required group under which you want to create the ledger. If you select All Items, you can select the g

3. Enter the Name of Ledger .

4. Enter the Opening Balance . This is the balance as on the date of beginning of books. If you have opted to maintain balance

5. Specify whether the Opening Balance is Debit or Credit in the field Dr/Cr .
6. Save the Multi Ledger Creation screen.

Note: While creating Ledgers in multiple mode, the field Cost Centres are applicable, is set to Yes for Revenue accounts and No

See also

● Bank Ledger

● Party Ledger

Create Bank Ledgers

Bank ledgers contain relevant information about a bank that you use to make or receive payments. You can provide informatio

To create a bank ledger

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.

2. Enter the Name of the bank for the bank ledger.

3. Select Bank Account from the List of Groups , in the Under field.

Note: The Books Beginning date is pre-filled in Effective Date for Reconciliation field.

4. Provide the following details in Bank Accounts details :

o A/C holder's name - It prefills the company name; however, you can alter this name by pressing Backspace .

o A/c no. - Provide the account number of your bank.

o IFS code - Provide the IFS code for your bank.

Note: If the IFS code in incorrect, the system prompts the warning message "Invalid IFS Code. The IF

o Bank name - Select the bank name from the List of Banks .

The Ledger Creation screen appears as shown below:

 Note : The List of Banks is displayed only when TSS and internet connectivity is available . Additionally, the Bank

5. Under Bank Configuration:

o Enable Set cheque books. Enter the details of the cheque range in the Cheque Book Management screen as shown below:

Note: You can set cheque ranges from the Cheque Register report as well.

o Enable Set cheque printing configuration? to Yes. Refer to the topic Setting Up Cheque Printing Configuration in Bank Ledger

Note : In
case the
cheque
printing
feature is
not
enabled
in F11:
Accountin
g
Features
the error
message -
Enable
Cheque
Printing
from F11
Accountin
g
Features
will be
displayed
while
setting
the
option -
Set/Alter
Cheque
Printing
Configura
tion to
Yes in the
bank
ledger
master.
One bank
ledger
may have
multiple
cheque
books. If
you enter
a cheque
number
that
already
exists in
another
cheque
range,
the error
message
The
entered
cheque
range is
overlappi
ng with
the
existing
cheque
range is
displayed
, as
shown
below:

● Enter the correct cheque numbers and press Enter to navigate to the Ledger Creation screen.

● Set Enable auto reconciliation to Yes to reconcile the bank accounts by importing the bank statements.

● Enabling Set/alter auto BRS configuration opens the Location of Bank Statements screen. Specify the path for Location and L

● Enable e-Payments: This option is applicable only for banks supported for electronic modes of payment. The following banks

o DBS Bank - India

o Standard Chartered Bank - India

o Standard Chartered Bank - UAE

o YES BANK - India

o ICICI Bank - India

o Kotak Mahindra Bank

o HDFC Bank

o Bank of Baroda

Upon selecting one of the banks from the above list, the e-payments capability is enabled by default.

6. Enter the Name , Address , State and Pincode i n the Mailing Details section.

7. Press Enter or Y to accept and save the bank ledger.

Create Party Ledgers

A business deals with customers, wholesalers, retailers and many such business parties on a day-to-day basis. You need to crea

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create . The Ledger Creation screen displays as shown below:

Note: In the party ledger, the cursor will skip the filed Maintain balances bill-by-bill when the option Inventory Values are affe

2. Enter the Currency of Ledger of your choice.

3. Set Enable multi-currency to Yes under F11: Features t o create or maintain ledgers in multiple currencies.

Note: You can create a new currency from this field by pressing Alt+C . For more information on currencies, see Multi-Currency

4. Enable Maintain balances bill-by-bill if you maintain balances bill-wise.

5. Define the Default Credit Period .

The credit period may be given for Sundry Debtors and Sundry Creditors . The number of credit days or period can be defined i

Suffix Example
 5 is
considere
Days None d as 5
days.

5 W is
considere
Weeks W d as 5
weeks.

5 M is
considere
Months M d as 5
months.

5 Y is
considere
Year Y d as 5
years.

6. Set the option Check For Credit Days During Voucher Entry to Yes to get a warning message when the party ledger selected

This will ensure that there is better control over credit period and outstanding amounts to be received and paid.

7. Select Yes for the option Inventory values are affected? if your company maintains a ccounts with inventory .

Note: Tally.ERP 9 does not restrict you to particular accounts as you may require to link inventory with accounts like customs du

Cost Centre options

To get the option Cost Centers are applicable? in the Ledger Creation screen, you have set Maintain cost centres to Yes in F11: F

1. Enable the Cost Centers are applicable? option, if any of the transactions need to be allocated to any particular cost center (

2. Enable the Activate Interest calculation option to enable interest calculation automatically based on the interest rate and sty

3. Enable the Use advanced parameters option to enable the advanced parameters for interest rates that change from time to

4. Enter the Mailing Details only for party accounts like sundry debtors, creditors and branch divisions, branch/divisions, bank a

5. Enable the Provide Bank Details option to provide the required bank details for the party. For information about providing b

Statutory Information
This
functiona
lity is
available
only, if
you have
enabled
at least
one of
the
options
under
F11:
Features
> F3:
Statutory
&
Taxation .
Based on
the
options
enabled
under F3:
Statutory
&
Taxation ,
the fields
are
displayed
in the
Statutory
Informati
on
section.

● Enter the Mailing Details only for party accounts like sundry debtors, creditors and branch divisions, branch/divisions, bank a

● Enable the Provide Bank Details option to provide the required bank details for the party. For information about providing b

Note: In case of an employee ledger under payroll, refer to the topic Providing Bank Details in Employee Master .

Tax Information
The tax information consists of the default fields PAN/IT No., Name on PAN/IT No. and the GSTIN based on the features you en

Other Information
In this section, information of the relationship and enterprise type of the party with whom the transaction carried out is entere

Note : The Other Information section will be displayed in Ledger Master Creation screen only when the option Use Other Info
● Enable the option Is Related Party? if the party under creation is related to the business organisations. If the option is enable

● Select the Enterprise Type . Type of enterprise information is collected from the party.

● Enter the Party's Registration Number .

● Press Enter and type the amount in the Opening Balance field. If you have enabled Maintain balances bill-by-bill (step 4), t h

● Set the Date if required. By default, the last date of your previous accounting period, for example, 31 March 2008 is picked u

● Enter a Name. You can also enter the bill number or document number.

● For the ledgers under Sundry Debtors and Creditors, give the credit period or the date when the bill is due for Due date (or c

Note: While entering a transaction if you opt for using effective dates instead of bill dates the due date would be calculated.

● Enter the Amount as required. For the amount of the bill due, you can enter the particulars of all pending bills one by one.

If the total amount of all your bills covers the opening balance, the On Account becomes NIL . The total of all your bills can be

● Press Y or Enter to accept the screen.

vouchers. For example, purchase, payments, sales, receipts, and others accounts heads are ledger accounts. Without a ledger, you cannot
ation screen appears as shown below:
al name or the alias name.

Grouping and Accounting Classifications for more details.

r a liability, and also if it has a balance in the account as on the date of beginning of books.

pplicable. You can enter balances for accounts that have obverse balances such as revenue accounts. For example, you may have transferre

er the group s tock-in-hand .

ver for multiple ledgers, all the fields are not available for alteration.

e a ledger for which vouchers have been created, you have to first delete all the vouchers from that ledger and then delete the ledger acco
ated directly under Current Liabilities and Assets can be classified as Current assets and Fixed assets. To create Fixed Assets ledger:
 er, you can use this option for accounts like Customs Duty, direct expenses related to purchases such as Freight Inwards and so on.

ave to set the option Maintain cost centres to Yes in F11: Accounting Features , to get this option in the Ledger creation screen.

y based on the interest rate and style of calculation specified for this ledger account. Set the option Use advanced parameters to Yes to use

e VAT, CENVAT, Excise, Sales and other trade taxes and total liability.

atutory, by default, Others is displayed. Depending on features in F11: Statutory & Taxation , more options can be included in the Type of D

you can use this option for accounts like Customs Duty, direct expenses related to purchases such as Freight Inwards and so on.

ave to set the option Maintain cost centres to Yes in F11: Accounting Features , to get this option in the Ledger creation screen.

tion of interest automatically based on the interest rate and style of calculation specified for this ledger account. Set the option Use advan

automatic discount calculation facility by specifying a negative percentage in this field. The Group Duties and Taxes is used for automatic ta

d of Calculation , select appropriate options to calculate the Tax/Duty.

ect rounding method, rounding limit option is displayed.

th inventory .

n the Ledger Creation screen

t centres to Yes .

ave to be allocated to a particular cost centre.

ect All Items, you can select the group for each ledger in the Under column.

have opted to maintain balances bill-by-bill, you must give the bill details.
 es for Revenue accounts and No for Non-Revenue accounts by default. The field Inventory values are affected is set to Yes for Sales and Pu

ents. You can provide information such as Bank name, Account no., IFS code, and address while creating bank ledgers.

ssing Backspace .

message "Invalid IFS Code. The IFS Code must contain 4 alphabets, followed by 0 and 6 numbers/alphabets. For example, KKBK0000434."
available . Additionally, the Bank Configuration displays options that are applicable for the bank you select.

ement screen as shown below:

ng Configuration in Bank Ledger for more details.

ecify the path for Location and Location of imported bank statements as shown below:

of payment. The following banks are supported for e-payments capability:

ay-to-day basis. You need to create party ledgers to record transactions that you make, which may involve receipts or payments, or supplies

plays as shown below:

option Inventory Values are affected is enabled. Set the option Inventory values are affected to No , to enable the bill-wise details.

ple currencies.

n currencies, see Multi-Currency .

t days or period can be defined in various ways:

 when the party ledger selected in a transaction has exceeded the credit period, and outstanding bills have not been cleared. The warning

eceived and paid.

with inventory .

ory with accounts like customs duty, or direct expenses related to purchases such as freight inwards.

ntain cost centres to Yes in F11: Features > F1: Accounting Features.

ed to any particular cost center (which involves this ledger).

ased on the interest rate and style of calculation specified.

rates that change from time to time.

visions, branch/divisions, bank and bank OCC A/c, loans and advances assets, loans and advances liabilities, secured and unsecured loans,

or information about providing bank details, refer to the topic Entering Bank Details in a Party Ledger .
visions, branch/divisions, bank and bank OCC A/c, loans and advances assets, loans and advances liabilities, secured and unsecured loans,

r information about providing bank details, refer to the topic Entering Bank Details in a Ledger .

Employee Master .

IN based on the features you enable in F11: Features > F3: Statutory & Taxation. The additional fields appears under taxation.

transaction carried out is entered.

when the option Use Other Information for Ledger Accounts is set to Yes in F12: Ledger Configuration.
anisations. If the option is enabled, the Related Party Details screen appears.

balances bill-by-bill (step 4), t he Opening Balance field at the end of Ledger Creation screen displays the Bill-wise Breakup screen of the l

mple, 31 March 2008 is picked up here. As the break-up of the opening balance is selected, the date of the bill is prior to the accounting pe

the bill is due for Due date (or credit days).

due date would be calculated.

of all pending bills one by one.

The total of all your bills can be beyond the opening balance. In the screen shown below, there are two bills 50,000, 25,000. Now, if the ba
ts. Without a ledger, you cannot record any transaction.
xample, you may have transferred your books to Tally.ERP 9 in the middle of the year and may not have closed them in your earlier system.

and then delete the ledger account.

ate Fixed Assets ledger:
eight Inwards and so on.

dger creation screen.

vanced parameters to Yes to use advanced parameters when interest rates change from time to time.

can be included in the Type of Duty/Tax.

t Inwards and so on.

dger creation screen.

count. Set the option Use advanced parameters to Yes to use advanced parameters when interest rates change from time to time.

nd Taxes is used for automatic tax calculation.

ted is set to Yes for Sales and Purchase Accounts and No for the others by default.

nk ledgers.

For example, KKBK0000434."

eceipts or payments, or supplies or receipts from these parties.

able the bill-wise details.

e not been cleared. The warning message appears as shown below:

s, secured and unsecured loans, and so on. These are used in mailing outputs like statement of accounts.
s, secured and unsecured loans, and so on. These are used in mailing outputs like statement of accounts.

ars under taxation.

Bill-wise Breakup screen of the ledger.

bill is prior to the accounting period.

ls 50,000, 25,000. Now, if the balance brought forward is 1,00,000/- , the On Account amount will reflect 25,000/-. If you obtain the bill par
sed them in your earlier system. Hence, you must specify debit or credit for the balance.
ange from time to time.
5,000/-. If you obtain the bill particulars at a later date, you can alter the ledger to enter these details, which will nullify On Account.
ch will nullify On Account.
Voucher Types
There are 18 different pre-defined voucher types pertaining to accounting, inventory and payroll. When the payroll feature is e

For example, the Cash Payment and Bank Payment vouchers where the relevant predefined voucher is Payment Voucher. You m

If a voucher type is created, you can:

● Use different v oucher numbering methods.

● Give own prefix and suffix details for the voucher numbering.

● Use the Effective Dates for the vouchers.

● By default, make some vouchers optional if required.

● Use c ommon narration or n arration for each entry .

● Automate the printing immediately after saving the vouchers.

● Generate separate reports for each type of voucher.

Click the following links to know more about Creating a Voucher Type :

● Create a Voucher Type

● Creating a Voucher Type with Advanced Configuration

● Multi-User Voucher Numbering

Click the following links to know more about Voucher Classes :

● Purchase Voucher Class

● Sales Voucher Class (Inclusive of Tax)

● Voucher Classes for Payment, Receipt and Contra Vouchers

● Voucher Class for Debit Notes and Credit Notes

● Payment Voucher Entry with Class

● Payroll Voucher Class

● Cost Centre Class

Create Voucher Types

You can customise the voucher by creating a voucher class.

To create a voucher type

1. Go to Gateway of Tally > Accounts Info. or Inventory Info. > Voucher Type > Create .

2. Enter the Name of the voucher.

3. Select the type of voucher.

4. Enter the abbreviation in the Abbreviation field, if required.

5. Select the Method of voucher numbering from the Methods of Numbering list, which appears as shown below:

Click here for more information about the Methods of Numbering available.

6. Enable Use effective dates for vouchers to enter effective dates for vouchers.
Note:
Select
this
option if
you have
a
transactio
n under
considera
tion for
overdue/
ageing
analysis
recorded
currently
but will
come into
effect on
another
date. If
the
effective
date is
entered,
the
overdue/
ageing
will be
considere
d from
the
effective
date and
not from
voucher
date.

7. Enable Make this voucher type 'Optional' by default to set your voucher to optional voucher by default.

Note: For Memorandum and Reversing Journal voucher the option Make this voucher type 'Optional' by default is not available

8. Enable Allow narration in voucher to give a common narration for voucher. A common narration screen for voucher appears
9. Enable Provide narration for each ledger in voucher ? if you want to give a separate narration for each entry of a voucher. T

For Delivery Note, Receipt Note, Sales order, Purchase order, Physical Stock, Stock Journal, Rejection In and Rejection Out, the

10. Enable Print voucher after saving to print every voucher after entering it.

Note: Depending on the Type of Voucher selected to create or alter, different printing features appear in this field. For example

11. Set Use for POS invoicing to Yes to use the sales invoice as POS invoice.

12. Set the Default title to print on invoice to print the same title for POS invoice.

Note : Default print Title option will appear only in Sales Voucher Type.

13. Select the bank in Default bank option to print the default bank ledger when the option Print Bank Details is enabled in a S

14. Enter the Default jurisdiction to be printed on the invoice, if required.

15. Create a voucher class in the Name of Class field, if required.

The completed Voucher Type Creation screen appears as shown below:

16. Press Enter to save.

Manufacturing Journal Voucher Type

While creating a Stock Journal Voucher Type , the option Use Manufacturing Journal is enabled. The Voucher Type Creation sc

See Creating a Bill of Material for more details.

Multi User Auto Voucher Numbering
The Multi-User Auto Voucher Numbering feature in Tally.ERP 9 works effectively in a multi user environment where multiple us

Multi-user auto voucher numbering helps:

● When multiple users are attempting to pass a sales voucher simultaneously, the process may be hindered due to the vouche

● When a specific voucher number is used by one of the user the other user will have to re-accept the voucher so that the nex

● To ensure that the vouchers are numbered sequentially.

● To ensure that the bill-wise details do not have to be re-entered manually as it will get updated with the new voucher numbe

Let us consider three users: Mr. Mohan, Mr. Ram and Mr. Shyam. All the three users are trying to record a sales voucher. The vo

In order to eliminate this error message and avoid the re-acceptance of the voucher, Tally.ERP 9 provides the option of Multi-U

To know more about enabling this option, click here

On enabling the Multi user voucher numbering feature, the voucher number appears as 25<Auto> for all the three users.

The bill-wise details screen and other relevant details will also be updates as 25<Auto>.

If the user mentions the voucher number in the Narration field, then on saving the voucher entry, the number in the narration

Let us assume that Mr. Mohan saves the entry first. The assigned voucher number 25<Auto> will be saved as 25 in his data. A c

The narration field will be updated accordingly:

The bill-wise details with the updated Bill name will appear as shown:
When Ram and Shyam saves the voucher, the voucher number 25 <Auto> will be changed to the next available voucher numbe

Note: The Multi User Voucher Numbering is an extension of the Automatic Numbering method. This option aids in fastening th

Create Purchase Voucher Class

Purchase Voucher Classes are templates where you can restrict accounts to be used in entries as well as automate accounting

You can either alter the existing Purchase Voucher Type or create a new voucher type based on the requirements.

To Configure Purchase Voucher Class

1. Go to Gateway of Tally > Accounts Info. > Voucher Type > Alter > Purchase .

2. Give a name to the class under Name of Class, for example, Purchase Class . You can create more than one class. (Make sure
In Default Accounting Allocations for each Item in Invoice (except for the items specified below) section

3. Select the Purchase Ledger – Local Purchases . All the stock items that will be entered in the voucher using this class, except

4. Specify 100% in Percentage field.

5. Set Override using Item Defaults? to No .

6. Default Accounting Allocations : Set Default Accounting Allocations to Not Applicable (Refer to Voucher Class - Allocation o

7. Save the details.

Record Purchases using voucher class

1. Record Purchase by passing a Purchase entry using the created Purchase Class.

2. Go to Gateway of Tally > Accounting Vouchers > F9 : Purchase .

3. Select the Class.

4. Select the Supplier Account .

You will observe that the Ledger Accounts grouped under Sundry Debtors are also listed as you have not specified any conditio

Please note that the Freight Ledger is automatically displayed and the user has to only specify the value.

Once you select Item B , specify the Quantity and Rate , the value will be automatically calculated and the cursor will directly m

Using Voucher Class for Inclusive of Tax Calculation

Voucher class can be used to automatically apply GST in transactions. You can create voucher class for inclusive-of-tax calculati

By creating voucher class with default tax ledgers and percentages, the errors that may arise due to the selection of wrong tax
Voucher Class with Inclusive of Tax
In an inclusive voucher class, the tax amount is included in the sales value. Given below is the illustration of inclusive of tax vou

The sales ledger value and tax value are defined as percentage of the total sales value.

To create inclusive of tax voucher class

1. Go to Gateway of Tally > Accounts Info > Voucher Types > Alter > Sales . Specify the details of the class as below:

Now pass
a sales
invoice
using the
voucher
class
created.
The
default
account
allocation
s selected
in the
voucher
class will
be
automatic
ally
applied in
the
invoice.
The
invoice
will not
display
the value
of the
default
ledgers.
The auto-
calculate
d value
for the
default
ledgers
can be
viewed in
the
alteration
mode.
Open the
invoice in
alteration
mode,
and press
Enter
from the
field
Amount .

Voucher class without inclusive of tax

In a tax-exclusive voucher class, sales ledger and tax ledger percentages are exclusively defined.

As in tax-inclusive voucher class, the tax values will be applied automatically in the invoice. There is no need to select the tax le

You can create multiple voucher class for different tax rates or tax types depending on your requirement.
Voucher Class
Voucher Classes are used to automate accounting allocations in transactions. It is a table for predefining the entries to make in

During voucher entry, the accounting credits for items sold are done automatically. Additional accounting entries like tax, freigh

Voucher Classes are available for all major voucher types like Contra, Payment, Receipt, Journal, Sales, Credit Note, Purchases,

On this page

Voucher Class for Debit Notes and Credit Notes

Voucher Classes for Payment, Receipt and Contra Vouchers

Voucher Class for Debit Notes and Credit Notes

Voucher classes for Credit Notes are similar to sales invoices except for one important inclusion. You can set the class for intere
Debit
Note
classes
can be
set for
interest
entries
only.
Classes
for other
entries
are not
available
as the
invoice
mode of
entry is
not
possible
for Debit
Notes.

Voucher Classes for Payment, Receipt and Contra Vouchers

The primary intention of using classes for payment, receipt and contra vouchers is to enable data input in single entry or list mo

Let us
take an
example
of a
Payment
Voucher .
You can
either
alter the
existing
Payment
Voucher
Type or
create a
new
voucher
type
based on
your
requirem
ents.

● Go to Gateway of Tally > Accounts Info > Voucher Types > A lter > Payment .

● Take the cursor to the Name of Class field. Give a name to the class say Cash Payment. You can create more than one class.

● Exclude these Groups and Include these Groups : Using this option, you can select only those groups pertaining to the Class

● Ledger Name : Selecting the ledger account that will be used to pay out the money will eliminate the need to select it during

Note: Exclude or Include Groups are irrelevant when you specify a Ledger Name for which the class is created. They are useful
See also

Purchase Voucher Class

Payroll Voucher Class

Voucher Class
Voucher Classes are used to automate accounting allocations in transactions. It is a table for predefining the entries to make in

During voucher entry, the accounting credits for items sold are done automatically. Additional accounting entries like tax, freigh

Voucher Classes are available for all major voucher types like Contra, Payment, Receipt, Journal, Sales, Credit Note, Purchases,

On this page

Voucher Class for Debit Notes and Credit Notes

Voucher Classes for Payment, Receipt and Contra Vouchers

Voucher Class for Debit Notes and Credit Notes

Voucher classes for Credit Notes are similar to sales invoices except for one important inclusion. You can set the class for intere
Debit
Note
classes
can be
set for
interest
entries
only.
Classes
for other
entries
are not
available
as the
invoice
mode of
entry is
not
possible
for Debit
Notes.

Voucher Classes for Payment, Receipt and Contra Vouchers

The primary intention of using classes for payment, receipt and contra vouchers is to enable data input in single entry or list mo

Let us
take an
example
of a
Payment
Voucher .
You can
either
alter the
existing
Payment
Voucher
Type or
create a
new
voucher
type
based on
your
requirem
ents.

● Go to Gateway of Tally > Accounts Info > Voucher Types > A lter > Payment .

● Take the cursor to the Name of Class field. Give a name to the class say Cash Payment. You can create more than one class.

● Exclude these Groups and Include these Groups : Using this option, you can select only those groups pertaining to the Class

● Ledger Name : Selecting the ledger account that will be used to pay out the money will eliminate the need to select it during

Note: Exclude or Include Groups are irrelevant when you specify a Ledger Name for which the class is created. They are useful
See also

Purchase Voucher Class

Payroll Voucher Class

Record a Payment with Voucher Class

Select Accounting vouchers from Gateway of Tally . Press F5: Payment . You have to select a class or Not Applicable , if no clas

The entry will be made as follows:

The
Voucher
Class is
Cash
Payment .
Once the
voucher
class is
selected,
the Cash
Ledger is
automatic
ally
selected
and you
need to
select
only the
Ledgers
which are
to be
debited.
Please
note that
the entry
is not
done in
the
regular
Dr/Cr
format.
Data
entry in
Tally.ERP
9 is very
rapid.

Create Payroll Voucher Class

Payroll Voucher Classes are templates where you can restrict accounts to be used in entries as well as automate payro

To Configure Payroll Voucher Class

1. Go to Gateway of Tally > Accounts Info. > Voucher Type > Alter > Payroll .

2. Enter a name to the class to be created under Name of Class in the Voucher Type Alteration screen. You can create more th

Note: Enable the option, Maintain payroll in F11: Features to create a class.
The Voucher Type Class screen appears as shown below:

3. Select the ledger name.

Record Payroll
To pass a payroll entry using payroll class

1. Go to Ga t eway of Tally > Payroll Vouchers > F4 : Payroll .

2. S ele c t the c la s s from Voucher Class List as shown below:

3. Press Alt+A to auto fill payroll and the Payroll Auto Fill screen appears with class.

OR

4. Go to Gateway of Tally > Payroll Vouchers . The Payroll Voucher Creation screen is displayed with the bank ledger by defaul

5. Press Alt+A to auto fill payroll details. The Payroll Auto Fill screen appears with class as shown below:

6. E nter the required details.

7. Enter the bank allocation details as shown below:

The filled screen appears as shown below:

8. Save the transaction.

Cost Centre Class
The purpose of Cost Centre Classes is to facilitate predetermined allocation of cost centres to Ledger accounts (like expenses an

The Automation of cost centre allocation involves creation of classes and predefining percentages for cost centres.

Cost centre classes affect all voucher types. In voucher entry, depending upon the cost centre class, the allocation will be carrie

On this page

Create Cost Centre Class

Voucher Entry using Cost Centre Class

Create Cost Centre Classes

Before you select classes , it is advisable to create the cost centre structure.

Define the Classes required and indicate which cost centres will be affected for each class. For example, you might have the fol

● Divisions

o Export

o Wholesale

o Retail

● Departments
o Finance

o Marketing

Where Divisions and Departments are Cost Categories and the others are cost centres.

Now, you would like to allocate sales to the following Cost Centre Classes:

● Export Class - to allocate 100% of Export sales to the cost centre Export

● Wholesale Class - to allocate 100% of wholesale sales to the cost centre Wholesale

● Retail Class - to allocate 100% of retail sales to the cost centre Retail

You
would
also like
to
allocate
all the
sales
(Export,
Wholesal
e and
Retail) to
the
Marketin
g
Departm
ent.
Along
with the
above
mentione
d, you
would
also like
to
allocate
Marketin
g
Expenses
on a pro-
rata in
the
following
manner:

● Finance – 50%

● Marketing – 50%

With this structure, let us now set up the classes.

To set up Cost Centre Classes

1. Go to Gateway of Tally > F11: Features > F1: Accounting Features . Set the option Use pre-defined cost centre allocations in

(The other options can remain as previously set and are not discussed here.)

2. Click Enter , which will pop up Auto Cost Allocations-Cost Centre Classes creation screen. Type the Class name and select the
You have created the Cost Centre Classes as Export, Wholesale, Retail and Marketing Expenses. Divisions and Departments are

It is not necessary to have the same names for the classes and the cost centres, as shown in the above example.

Use Cost Centre Class

Each voucher now contains the Cost Centre/Classes option at its head. Select Not Applicable in case you want to allocate manu

Let us examine this with two examples, a sales entry and a payment entry.

In sales, let us select Export as the Cost Centre Class .

1. Go to the Voucher Entry Screen.

2. Select F8: Sales.

3. Select one of the classes created earlier, in this case Export.

4. Now enter the sales invoice . The cost centre allocation sub-screen will not be displayed but the allocation will be done auto

5. After accepting the entry, check the cost centre displays to verify whether the allocation was done correctly.

6. Similarly, when you press F5: Payment , similar options are displayed. Select Marketing Expenses in that case. The cost centr

7. Use PgUp to check the entry in alteration mode. It will display the allocation in the voucher.
8. Check the cost centre reports for allocation.

Note: You can combine Voucher Class and Cost centre class to maximize automation.
oll. When the payroll feature is enabled, the number of pre-defined voucher types is 20.

ucher is Payment Voucher. You may have two or more sets of Sales Vouchers for different kinds of sales transactions for example, credit sal
ars as shown below:
er by default.

ptional' by default is not available.

ation screen for voucher appears as shown below:

on for each entry of a voucher. This would be applicable for a multiple entry voucher where you want separate details for each entry. The n

ection In and Rejection Out, the option Provide narration for each ledger in voucher ? is not available.

appear in this field. For example, if you select Receipt as Type of Voucher , the option Print Formal Receipt after saving will be displayed.

int Bank Details is enabled in a Sales voucher.

d. The Voucher Type Creation screen appears as shown below:
r environment where multiple users are working on the company data and recording vouchers.

y be hindered due to the voucher number allocation.

cept the voucher so that the next available voucher number is allotted to his voucher.

ed with the new voucher number on acceptance of the voucher entry.

to record a sales voucher. The voucher on each of their system is numbered as 25. Mr.Mohan saves the voucher first and his voucher will b

9 provides the option of Multi-User Auto Voucher Numbering.

uto> for all the three users.

try, the number in the narration field will be automatically altered to match the new voucher number.

will be saved as 25 in his data. A confirmation message indicating this will appear.
he next available voucher number.

d. This option aids in fastening the process without errors. However, this is applicable only in voucher creation and does not apply in the ca

as well as automate accounting entries for items and expenses.

n the requirements.

more than one class. (Make sure that Enter Purchases in Invoice Format in F11 : Features is enabled to create class). Create the Class as sh
e voucher using this class, except for those specified in the Default Accounting Allocations for section, will be automatically allocated to Lo

er to Voucher Class - Allocation of Stock Item for the usages of this option).
u have not specified any condition to exclude Sundry Debtors Group. If you have specified Sundry Debtors under Exclude option, then Tally

ted and the cursor will directly move to the Name of Item field instead of popping up the Accounting Allocations for screen.

lculation
class for inclusive-of-tax calculation as well as exclusive. The value of additional ledgers in the transaction should be included in the taxable

ue to the selection of wrong tax ledgers in the transactions can be avoided. It also reduces the time of voucher creation.
llustration of inclusive of tax voucher class under sales voucher type.

of the class as below:

ere is no need to select the tax ledgers.
 edefining the entries to make invoice entry a simple task. This is useful in sales invoicing where the nominal ledger accounts to be credited

accounting entries like tax, freight, and other charges, can be predefined to be carried out untouched during actual invoicing.

al, Sales, Credit Note, Purchases, Debit Note, Sales Order, Purchase Order, Delivery Note, Stock Journal and Payroll.

n. You can set the class for interest entries to enable adjustment of interest payable. If the Interest option is selected, the other sales invoic
ata input in single entry or list mode rather than in Tally's traditional double entry mode.
an create more than one class.

e groups pertaining to the Class, which makes the entry simpler.

nate the need to select it during entry. In this case, it is Cash Account. While passing the payment voucher, the Cash-Location B account wi

class is created. They are useful when you select Not Applicable .
 edefining the entries to make invoice entry a simple task. This is useful in sales invoicing where the nominal ledger accounts to be credited

accounting entries like tax, freight, and other charges, can be predefined to be carried out untouched during actual invoicing.

al, Sales, Credit Note, Purchases, Debit Note, Sales Order, Purchase Order, Delivery Note, Stock Journal and Payroll.

n. You can set the class for interest entries to enable adjustment of interest payable. If the Interest option is selected, the other sales invoic
ata input in single entry or list mode rather than in Tally's traditional double entry mode.
an create more than one class.

e groups pertaining to the Class, which makes the entry simpler.

nate the need to select it during entry. In this case, it is Cash Account. While passing the payment voucher, the Cash-Location B account wi

class is created. They are useful when you select Not Applicable .
ass or Not Applicable , if no class is desired for this entry. If Cost Centre Class has been set, it can also be selected.
tries as well as automate payroll entries. You can either alter the existing payroll voucher type or create a new voucher type based on req

n screen. You can create more than one class.

d with the bank ledger by default.
edger accounts (like expenses and incomes) during voucher entry.

ges for cost centres.

class, the allocation will be carried out in the background without the allocation screen being displayed at all.

example, you might have the following structure:

efined cost centre allocations in transactions to Yes .

pe the Class name and select the Categories and the respective cost centres. Specify the percentage of allocation . After entry, your auto-co
. Divisions and Departments are cost categories. Export, Wholesale and Retail are cost centres under Divisions. Marketing and Finance are

e above example.

n case you want to allocate manually. Select a cost centre class to auto-allocate according to the predefined percentages set in that class.
the allocation will be done automatically.

s done correctly.

nses in that case. The cost centre allocation sub-screen will not be displayed but the allocation will be done automatically.
nsactions for example, credit sales, cash sales, and so on.
rate details for each entry. The narrations for each entry appears as shown below:

t after saving will be displayed.

ucher first and his voucher will be saved as 25. But when Ram and Shyam attempt to save the voucher, the error message "Voucher Numbe
tion and does not apply in the case of insert or delete of vouchers.

eate class). Create the Class as shown below:

be automatically allocated to Local Purchases . Of course, the stock item record remains as it is and can be viewed separately.
under Exclude option, then Tally would have displayed the Ledgers excluding those Ledgers grouped under Sundry Debtors.

cations for screen.

hould be included in the taxable value for calculating tax, which can also be automated using voucher class.

cher creation.
al ledger accounts to be credited for each item of sale is defined once.

ring actual invoicing.

s selected, the other sales invoice-like options will not be available. A separate class may to be created for entries like Sales Returns. Since S
, the Cash-Location B account will be automatically selected. You may even select 'Not Applicable'. The purpose of selecting 'Not Applicable
al ledger accounts to be credited for each item of sale is defined once.

ring actual invoicing.

s selected, the other sales invoice-like options will not be available. A separate class may to be created for entries like Sales Returns. Since S
, the Cash-Location B account will be automatically selected. You may even select 'Not Applicable'. The purpose of selecting 'Not Applicable
new voucher type based on requirements.
cation . After entry, your auto-cost allocation screen will be displayed as shown:
ons. Marketing and Finance are cost centres under Departments.

percentages set in that class.

e automatically.
error message "Voucher Number 25 already used!New number will be xx!" appears.
viewed separately.
r Sundry Debtors.
entries like Sales Returns. Since Sales and Purchase Invoice classes have already been dealt with, we shall not elaborate on this behavior an
pose of selecting 'Not Applicable' will be, to permit Single Entry mode and at the same time retaining the option of selecting the account d
entries like Sales Returns. Since Sales and Purchase Invoice classes have already been dealt with, we shall not elaborate on this behavior an
pose of selecting 'Not Applicable' will be, to permit Single Entry mode and at the same time retaining the option of selecting the account d
ot elaborate on this behavior anymore.
option of selecting the account during entry.
ot elaborate on this behavior anymore.
option of selecting the account during entry.
Inventory Information
The Inventory Info menu, lists the inventory masters like Stock Group, Stock Items, Units of Measure of the company, using wh

Note: The Inventory Info menu is displayed in the Gateway of Tally, if you select Type of company as Maintain Accounts with In

Features and Configuration Options (F11, F12)

By using F11:Features , you can enable the various settings under inventory features which determine the information to be en

By using F12:Configure , you can enable the required settings of Inventory Masters .

By default, the settings pertaining to Inventory Masters are set to No . If you set them to Yes , the features will be enabled. Typ

Note: If you press F12 anywhere in the Menu, it will take you to the configuration menu.

To know more, click the links below:

● Stock Groups

● Stock Categories

● Stock Items

● Units of Measurement

● Bills of Materials

● Batches & Expiry Dates

● Inventory Voucher Class

Stock Group
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the classification of Stock Items.

You can group Stock Items under different Stock Groups to reflect their classification based on some common features such as
Grouping enables you to locate Stock Items easily and report their details in statements.

For example,

Stock Sub Main

Item Group Group
Brand A - Brand A Grade
19” TFT One
Brand A - Brand A Grade
17” CRT One
Brand B - Brand B Grade
19” TFT Two
Brand B - Brand B Grade
17” CRT Two

You now have ready details of Grade One and Grade Two products, duly classified. You can also view the sub group classificatio

● Go to Gateway of Tally > Inventory Info. > Stock Groups .

To know more, click the links below:

● Creating a Stock Group

● Creating Multiple Stock Groups

● Displaying a Stock Group

Creating Stock Groups
Stock Items are classified into stock groups to reflect their classification based on some community.

To create a Stock Group

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group).

2. Enter the Name of the Stock Group to be created. For example, Grade One.

3. Enter additional name apart from primary name [if required] in the field Alias . You can create any number of additional nam

4. Specify whether it is a primary group or a sub-group of another group in the field Under , by selecting from the list.

5. Press Alt+C to create a parent group, if you do not have it in the list.

6. The field Should quantities of items be added? pertains to information on measuring the units of the Stock Items that you w

The Stock Items categorised under the group should have similar units for them to be added up. You cannot add quantities in K

Note: You can always go back and reset this option after assessing the units of the items in the group.

Buttons specific to stock group creation:

Short Cut Descripti
Buttons Keys on & Use
 Allows
you to
C:
Category CTRL+C Create a
Stock
Category.

Allows
you to
I: Items CTRL+I Create a
Stock
Item.

Allows
you to
U: Units CTRL+U Create a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Create a
Godown

Allows
you to
V: Vch CTRL+V Create a
Types Voucher
Types

Note: Category and Godown buttons are visible only if you have opted for the same in F11: Features.

Creating Multiple Stock Groups

Tally.ERP 9 allows you to create Stock Groups using single or multiple options.

To create Multiple Stock Groups

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)
2. Select the parent group under which you want the new groups to be created from the List of Groups .

3. Enter the Name of the Stock Group .

4. If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the sele

5. If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter the parent group fo

6. In the field Should Quantities of Items be Added you can select whether units of the Stock Items under Stock Group are to b

Buttons specific to Multi Stock Group Creation screen

Short cut Descripti
Buttons keys on & Use

Allows
you to
change
F4 : CTRL+F4 the
Parent parent for
all sub
groups.
 Cursor
will not
go to
Column
Items are
Addable
(Y/N) . If
Items are
addable
is to
remain
the same
as
F8 : Skip F8 specified
Details for
further
subgroup
creation,
use this
button.
The
cursor
skips the
column
which
speeds
up data
entry.

Allows
you to
C: Create a
Category CTRL+C Multi
Stock
Category.

Allows
you to
Create a
I : Items CTRL+I Multi
Stock
Item.

Allows
you to
O:
Godown CTRL+O Create a
Multi
Godown
Displaying a Stock Group
You can display the existing Stock Group in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow yo

To display Single Stock Group

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single Stock Group)

2. Select the Stock Group whose particulars you want to display from the List of Groups . The Stock Group Display screen is disp

Buttons specific to stock group Display mode

Short cut Descripti
Buttons Keys on & Use

Allows
you to
C:
Category CTRL+C Display a
Stock
Category.

Allows
you to
I: Items CTRL+I Display a
Stock
Item.
 Allows
you to
U: Units CTRL+U Display a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Display a
Godown.

Allows
you to
V: Vch CTRL+V Display a
Types Voucher
Types

Note: Category and Godown buttons are visible only if you opted for the same in F11: Features .

To display Multiple Stock Groups

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple Stock Groups)

2. Select the Stock Group from the List of Groups .

If you select All Items from the List of Groups , all the Groups and sub Groups are displayed.
If you select Grade One from List of Groups , all the sub Groups related to Grade One will be displayed.

Buttons specific to Multi stock group Display mode:

Shortcut Descripti
Buttons Keys on & Use

Allows
you to
select
parent
[Stock
Group]
F4: Parent CTRL+F4 from List
of Group .
Selected
Stock
Group
will get
displayed.

Allows
you to
select
Category
from List
of
C:Categor CTRL+C Categorie
y s.
Selected
Stock
Category
will get
displayed.
 Allows
you to
select
Stock
Group
from List
of Groups
I: Items CTRL+I . Selected
Stock
Group
will
display
related
stock
items.

Allows
you to
select
Godowns
from List
O:
Godown CTRL+O of
Godowns
. Select
Godowns
will get
displayed.

Note: Category and Godown buttons are visible only if you have opted for the same in F11: Features.

Stock Categories
Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in beha

For example,

Stock Sub Main Sub- Main

Item Group Group Category Category
Brand A - Brand A Grade TFT Monitor
19” TFT One
Brand A - Brand A Grade CRT Monitor
17” CRT One
Brand B - Brand B Grade TFT Monitor
19” TFT Two
Brand B - Brand B Grade CRT Monitor
17” CRT Two

The advantage of Categorizing items is that you can classify the stock items (based on functionality) together – across different

You now have the details of TFT and CRT products, duly classified. You can also view the Monitor classification.

For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features > Set Yes for Maintain stock cat

● Go to Gateway of Tally > Inventory Info. > Stock Category .

To know more, click the links below:

● Creating a Stock Category

● Creating Multiple Stock Categories

● Displaying a Stock Category

● Altering a Stock Category

Stock Items
Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and is the lowest level of informatio

● Go to Gateway of Tally > Inventory Info. > Stock Items .

To know more, click the links below:

● Creating a Stock Item

● Creating a Stock Item in Advance Mode

● Displaying a Stock Item

● Altering a Stock Item

Creating Simple Unit of Measure

Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it

To create Simple Units of Measure

1. Go to Gateway of Tally > Inventory Info > Units of Measure > Create. The Unit Creation screen is displayed as shown below:

This field will show the Type of Units.

● Simple

● Compound.

Simple units are nos, pcs , and so on. Compound unit is a combination of two simple units.

By default Tally.ERP 9 will show the Simple unit for creating the unit of measure.

You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the previous field].

2. Define the Symbol of the unit, for example, Nos. This symbol is used in all displays and printouts.

3. Specify the Formal Name of the symbol, for example, Numbers. This formal name is useful during the consolidation of data

4. In this field you can specify the Number decimal places for the Units from 0 to 4. This field is useful for Units measured in fra

For example, Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places req

See also
Creating Compound Units of Measure

Altering a Units of Measure

Displaying a Units of Measure

Bill of Materials
A Bill of Materials is a list of constituent items along with quantity details that can be allotted for the manufacture of a certain

Bill of
Material
(BoM) is
created
only for
those
items
that are
being
assemble
d in-
house.
Therefore
, you
need to
specify a
BoM at
the time
of
creating a
Stock
Item or
while
altering
the stock
item. For
trading
items,
you do
not need
a BoM.

To know more, click the links below:

● Creating Single Bill of Materials for a Stock Item

● Creating Manufacturing Journal for a Stock Item with Single Bill of Materials

● Creating Multiple Bill of Materials for a Stock Item

● Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials

● Creating Single/Multiple Bill of Material with Type of Item

● Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with Type of Item
Batches and Expiry Dates
Batch details are used to identify the movement of the inventory in batches or lots. Although this is a requirement primarily of

Batches/Lots are also often used to monitor the date of manufacture , date of receipt or the expiry date .

To know more, click the links below:

● Activating Batch-Wise Details

● Manufacturing date & Expiry date for Batches

Inventory Voucher Class

Inventory Voucher Classes are used to automate Inventory Allocations in transactions. It is a table for predefining the entries to

To know more, click the links below:

● Creating Stock Journal Voucher Class

● Predefined Voucher Types in Tally.ERP 9

asure of the company, using which you can create, alter and display the inventory master details.

ny as Maintain Accounts with Inventory in the Company Creation screen.

ermine the information to be entered during transaction entries.

he features will be enabled. Typically, they are additional fields that appear during Masters creation which enable you to obtain more infor

classification of Stock Items.

some common features such as brand name, product type, quality, and so on.
o view the sub group classification.
te any number of additional names.

y selecting from the list.

nits of the Stock Items that you would categorise under the Stock Group .

p. You cannot add quantities in Kgs to quantities in Pcs .

ed in automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

you to enter the parent group for each one of them.

tems under Stock Group are to be added or not.

play Tally.ERP 9 does not allow you to alter any information in display mode.

tock Group Display screen is displayed as shown.

done based on similarity in behaviour.
ality) together – across different stock groups which enables you to obtain reports on alternatives or substitutes for a stock item.

or classification.

> Set Yes for Maintain stock categories .

d is the lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP 9 for each inventory item that you want to

asured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. Exam
n is displayed as shown below:

go to the previous field].

during the consolidation of data of different companies, where the symbols might be the same but are assigned to different units. The form

s useful for Units measured in fractions.

t, number of decimal places required is 3

or the manufacture of a certain product, by-product or likewise. This facilitates immediate reduction in stock of the item automatically. Thi
his is a requirement primarily of the pharmaceutical industry, the same can be used by other industries who maintain or manufacture peris

able for predefining the entries to make Invoice entry a simple task. This is particularly useful in Stock Journals where the transfer of mater
enable you to obtain more information and detailed analyses.
titutes for a stock item.
h inventory item that you want to account for.

er be simple or compound. Examples of simple units are: nos., metres, kilograms, pieces etc.
gned to different units. The formal name will be used to match them.
ck of the item automatically. This process of listing the items that make up another item is made possible in Tally by enabling the Bill of Ma
o maintain or manufacture perishable goods. Many organizations also purchase in lots in order to monitor the lots purchased individually.

nals where the transfer of materials from one godown to another and vice versa has to be updated without updating the books of Account
n Tally by enabling the Bill of Materials Facility.
the lots purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot.

t updating the books of Accounts.

Stock Group
Stock Groups in Inventory are similar to Groups in Accounting Masters. They are helpful in the classification of Stock Items.

You can group Stock Items under different Stock Groups to reflect their classification based on some common features such as

Grouping enables you to locate Stock Items easily and report their details in statements.

For example,

Stock Sub Main

Item Group Group
Brand A - Brand A Grade
19” TFT One
Brand A - Brand A Grade
17” CRT One
Brand B - Brand B Grade
19” TFT Two
Brand B - Brand B Grade
17” CRT Two

You now have ready details of Grade One and Grade Two products, duly classified. You can also view the sub group classificatio

● Go to Gateway of Tally > Inventory Info. > Stock Groups .

To know more, click the links below:

● Creating a Stock Group

● Creating Multiple Stock Groups

● Displaying a Stock Group

Creating Stock Groups

Stock Items are classified into stock groups to reflect their classification based on some community.

To create a Stock Group

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Single Stock Group).

2. Enter the Name of the Stock Group to be created. For example, Grade One.

3. Enter additional name apart from primary name [if required] in the field Alias . You can create any number of additional nam

4. Specify whether it is a primary group or a sub-group of another group in the field Under , by selecting from the list.

5. Press Alt+C to create a parent group, if you do not have it in the list.

6. The field Should quantities of items be added? pertains to information on measuring the units of the Stock Items that you w

The Stock Items categorised under the group should have similar units for them to be added up. You cannot add quantities in K
Note: You can always go back and reset this option after assessing the units of the items in the group.

Buttons specific to stock group creation:

Short Cut Descripti
Buttons Keys on & Use

Allows
you to
C:
Category CTRL+C Create a
Stock
Category.

Allows
you to
I: Items CTRL+I Create a
Stock
Item.

Allows
you to
U: Units CTRL+U Create a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Create a
Godown

Allows
you to
V: Vch CTRL+V Create a
Types Voucher
Types

Note: Category and Godown buttons are visible only if you have opted for the same in F11: Features.

Creating Multiple Stock Groups

Tally.ERP 9 allows you to create Stock Groups using single or multiple options.

To create Multiple Stock Groups

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Create (under Multiple Stock Groups)

2. Select the parent group under which you want the new groups to be created from the List of Groups .

3. Enter the Name of the Stock Group .

4. If you select any group other than All Items in the Under Group field, then this column is filled in automatically with the sele

5. If you select All Items in the Under Group field, the cursor does not skip this field and allows you to enter the parent group fo

6. In the field Should Quantities of Items be Added you can select whether units of the Stock Items under Stock Group are to b

Buttons specific to Multi Stock Group Creation screen

Short cut Descripti
Buttons keys on & Use

Allows
you to
change
F4 : CTRL+F4 the
Parent parent for
all sub
groups.
 Cursor
will not
go to
Column
Items are
Addable
(Y/N) . If
Items are
addable
is to
remain
the same
as
F8 : Skip F8 specified
Details for
further
subgroup
creation,
use this
button.
The
cursor
skips the
column
which
speeds
up data
entry.

Allows
you to
C: Create a
Category CTRL+C Multi
Stock
Category.

Allows
you to
Create a
I : Items CTRL+I Multi
Stock
Item.

Allows
you to
O:
Godown CTRL+O Create a
Multi
Godown
Displaying a Stock Group
You can display the existing Stock Group in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow yo

To display Single Stock Group

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Single Stock Group)

2. Select the Stock Group whose particulars you want to display from the List of Groups . The Stock Group Display screen is disp

Buttons specific to stock group Display mode

Short cut Descripti
Buttons Keys on & Use

Allows
you to
C:
Category CTRL+C Display a
Stock
Category.

Allows
you to
I: Items CTRL+I Display a
Stock
Item.
 Allows
you to
U: Units CTRL+U Display a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Display a
Godown.

Allows
you to
V: Vch CTRL+V Display a
Types Voucher
Types

Note: Category and Godown buttons are visible only if you opted for the same in F11: Features .

To display Multiple Stock Groups

1. Go to Gateway of Tally > Inventory Info. > Stock Groups > Display (under Multiple Stock Groups)

2. Select the Stock Group from the List of Groups .

If you select All Items from the List of Groups , all the Groups and sub Groups are displayed.
If you select Grade One from List of Groups , all the sub Groups related to Grade One will be displayed.

Buttons specific to Multi stock group Display mode:

Shortcut Descripti
Buttons Keys on & Use

Allows
you to
select
parent
[Stock
Group]
F4: Parent CTRL+F4 from List
of Group .
Selected
Stock
Group
will get
displayed.

Allows
you to
select
Category
from List
of
C:Categor CTRL+C Categorie
y s.
Selected
Stock
Category
will get
displayed.
 Allows
you to
select
Stock
Group
from List
of Groups
I: Items CTRL+I . Selected
Stock
Group
will
display
related
stock
items.

Allows
you to
select
Godowns
from List
O:
Godown CTRL+O of
Godowns
. Select
Godowns
will get
displayed.

Note: Category and Godown buttons are visible only if you have opted for the same in F11: Features.
classification of Stock Items.

some common features such as brand name, product type, quality, and so on.

o view the sub group classification.

te any number of additional names.

y selecting from the list.

nits of the Stock Items that you would categorise under the Stock Group .

p. You cannot add quantities in Kgs to quantities in Pcs .

ed in automatically with the selected Group name and the cursor skips this column. This speeds up data entry.

you to enter the parent group for each one of them.

tems under Stock Group are to be added or not.

play Tally.ERP 9 does not allow you to alter any information in display mode.

tock Group Display screen is displayed as shown.

Stock Categories
Stock Category offers a parallel classification of stock items. Like stock Groups, classification is done based on similarity in beha

For example,

Stock Sub Main Sub- Main

Item Group Group Category Category
Brand A - Brand A Grade TFT Monitor
19” TFT One
Brand A - Brand A Grade CRT Monitor
17” CRT One
Brand B - Brand B Grade TFT Monitor
19” TFT Two
Brand B - Brand B Grade CRT Monitor
17” CRT Two

The advantage of Categorizing items is that you can classify the stock items (based on functionality) together – across different

You now have the details of TFT and CRT products, duly classified. You can also view the Monitor classification.

For enabling Stock Category option in the Inventory Info menu, press F11 > Inventory Features > Set Yes for Maintain stock cat

● Go to Gateway of Tally > Inventory Info. > Stock Category .

To know more, click the links below:

● Creating a Stock Category

● Creating Multiple Stock Categories

● Displaying a Stock Category

● Altering a Stock Category

Creating Stock Categories

This option allows parallel classification of stock items. Like Stock Groups, Stock Categories are also classified based on some si

This enables you to obtain reports for alternatives or substitutes of a stock item.

To create a Stock Categories

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Single Stock Category). The Stock Category Creati

2. Enter the Name of the Stock Category.

3. Specify whether it is a primary category or a sub-category of another category in the field Under. Select Primary from the lis

Buttons specific to stock category creation

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
G: Groups CTRL+G Create a
Stock
Group.
 Allows
you to
I: Items CTRL+I Create a
Stock
Item.

Allows
you to
U: Units CTRL+U Create a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Create a
Godown

Allows
you to
V: Vch CTRL+V Create a
Types Voucher
Types

Note: Godown buttons are visible only if you have opted for the same in F11: Features .

Creating Multiple Stock Categories

Tally.ERP 9 allows you to create Stock Categories using single or multiple options.

To create Multiple Stock Categories

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Create (under Multiple Stock Category). The Multiple Stock Cate

2. The field Under Category will display the List of Categories . You can select a category for which a multiple sub-category can

3. If you select All Items in List of categories , selection of parent category Under column is possible during creation of sub-cate

4. If you select specific category in List of Categories , that category will get populated automatically whenever creation of sub-
5. Specify the name of the Stock Category .

6. If you have select All Items in Under Category , you must specify a parent category in this column.

Buttons specific to Multi Stock Category screen

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
change
the
F4: Parent F4 parent for
all
Categorie
s.

Allows
you to
Create a
G: Groups CTRL+G Multi
Stock
Group.

Allows
you to
Create a
I: Items CTRL+I Multi
Stock
Item.

Allows
you to
O:
Godown CTRL+O Create a
Multi
Godown

Displaying a Stock Category

You can display the existing Stock Category in Single mode and multiple mode, since it is only display Tally.ERP 9 does not allow

To display a Single Stock Category

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Single Stock Category).

2. Select the Category for which you want to view the display details from the List of Categories . The Stock Category Display sc

Buttons specific to stock Category Display mode

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
G: Group CTRL+G Display a
Stock
Group.

Allows
you to
I: Item CTRL+I Display a
Stock
Item.

Allows
you to
U: Units CTRL+U Display a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Display a
Godown.

Allows
you to
V: Vch CTRL+V Display a
Types Voucher
Types

Note: Godown buttons are visible only if you have opted for the same in F11: Features .
To display Multiple Stock Categories

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Display (under Multiple Stock Categories)

2. Select the Stock Category from the List of Categories .

If you select All Items from the List of Groups , all the categories and sub categories are displayed.

If you select Monitor from the List of Categories , all the sub categories related to Monitor will be displayed.

Buttons specific to stock group Display mode

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
F4: Parent CTRL+F4 Display a
Stock
Group.
 Allows
you to
G: Groups CTRL+G Display a
Stock
Item.

Allows
you to
I: Items CTRL+I Display a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Display a
Godown.

Note: Buttons are visible only if you have opted for the same in F11: Features.

Altering a Stock Category

This option allows you to view the existing Stock Category in edit mode, here you are allowed to change the various informatio

To alter a Stock Category

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Single Stock Category).

2. Select the Stock Category from the List of Categories . The Stock Category Alteration screen is displayed as shown.

Make the necessary changes and click Yes to accept or press CTRL+A to Save.

Deletion is possible only in the alteration mode,. For deleting the Stock Category, Press ALT+D .

Note:
You cannot delete a stock Category, if it is used by any sub Category or stock items. In order to delete the Stock Category, first d

Buttons specific to stock group Alter mode

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
G: Groups CTRL+G Alter a
Stock
Group.

Allows
you to
I: Items CTRL+I Alter a
Stock
Item.

Allows
you to
U: Units CTRL+U Alter a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Alter a
Godown.

Allows
you to
V: Vch CTRL+V Alter a
Types Voucher
Types

Note: Godown buttons are visible only if you have opted for the same in F11: Features .

Altering Multiple Stock Categories

To alter Multiple Stock Categories

1. Go to Gateway of Tally > Inventory Info. > Stock Categories > Alter (under Multiple Stock Categories) .

2. Select the Stock Category from the List of Stock Categories . The Multi Stock Group Alteration screen is displayed as shown.
Make the necessary changes and click Yes to accept or Press CTRL+A to save.

Note: You cannot delete a Stock Category in multiple mode.

Buttons specific to Multi stock Category Alter mode:

Short Cut Descripti

Buttons on and
Keys Use

Allows
you select
Stock
Category
from
Under
F4:Parent F4 Category
Field for
changing
the
parent of
sub
Category.
 Allows
you to
select
parent
[Stock
Category]
from List
of
F4: Parent CTRL+F4 Category .
You can
able to
alter the
sub
Category
of
selected
Stock
Category.

Cursor
will not
go to
Column
Name of
Stock
Category .
If you
F6: Skip F6 want to
Names alter only
the
details of
Under
Column
then you
can skip
names.
 Cursor
will not
go to
column
Under . If
F7: Skip you do
F7
Parent not want
to alter
parent
then you
can skip
parent.

Allows
you to
Alter a
selected
stock
G: Groups CTRL+G Group in
Multi-
stock
Group
screen.

Allows
you to
Alter a
selected
I: Items CTRL+I Item in
Multi
Stock
Item
screen.

Allows
you to
Alter a
O: selected
Godown CTRL+O Godown
in Multi
Godown
screen.

Note: Godown buttons are visible only if you have opted for the same in F11: Features.
done based on similarity in behaviour.

ality) together – across different stock groups which enables you to obtain reports on alternatives or substitutes for a stock item.

or classification.

> Set Yes for Maintain stock categories .

also classified based on some similar behaviour.

gory). The Stock Category Creation screen is displayed as shown below:

nder. Select Primary from the list, if you do not have a parent group. Use Alt +C to create a parent if you do not have the required category
ategory). The Multiple Stock Category Creation screen is displayed as shown below:

hich a multiple sub-category can be created.

sible during creation of sub-category.

tically whenever creation of sub-category and cursor skips Under column.

display Tally.ERP 9 does not allow you to alter any information in display mode.
s . The Stock Category Display screen shows the details entered in Stock Category Master.
be displayed.
o change the various information.

s displayed as shown.
delete the Stock Category, first delete the relevant sub Category and Stock items.

n screen is displayed as shown.

titutes for a stock item.
o not have the required category in the list.
Stock Items
Stock Item refers to goods that you manufacture or trade. It is the primary inventory entity and is the lowest level of informatio

● Go to Gateway of Tally > Inventory Info. > Stock Items .

To know more, click the links below:

● Creating a Stock Item

● Creating a Stock Item in Advance Mode

● Displaying a Stock Item

● Altering a Stock Item

Creating Stock Items

Stock items are goods that you manufacture or trade (sell and purchase). It is the primary inventory entity. Stock Items in the In
Two modes of stock item creation:

● Normal Mode

● Advance Configuration Mode.

Creation of Stock item in Normal Mode

To create a Stock Item

1. Go to Gateway of Tally > Inventory Info > Stock Item > Create (under Single Stock Item) .

The Stock Item creation is displayed as shown below:

2. Specify the Name of the Stock Item.

3. Specify the Alias name of Stock Item (if required).

4. The field Under will show the List of Groups . Here you can select the Stock Group to which the Stock Item belongs. By defau

Note: You can create a new stock Group by pressing ALT+C at this field.

5. This field will show the Unit List. Here you can select the Unit of measure (UoM) applicable for the stock item. By default, No
Note: You can create a new UoM by pressing ALT+C at this field.

For stock items without UoM, the cursor will not move to the Quantity field during voucher entry.

6. Specify the Rate of Duty applicable for the stock item. This field is used for the calculation of excise duty or if duty is based o

Note: In F11 Inventory features, if the option Enable Invoicing is set to No then Rate of Duty field will not be visible.

7. Specify the Tariff Classification for the item, if applicable. Tariff Classification can be created or used when Excise features is

8. Specify the details of Opening Balance , if any, for the Stock Item as on the date of Beginning of Books.

o In the Quantity Field, specify the stock item Quantity, say 5 Nos.

o In the Rate field, specify the stock item Rate, say Rs. 8000 per piece.

o In the Value field, Tally.ERP 9 automatically calculates the value by multiplying the Quantity and Rate. You can also edit the v

Note: If Unit field is Not Applicable then the cursor will move from Quantity and Rate Field.

Buttons specific to Single Stock item creation

Short Cut Descripti

Buttons on and
Keys Use

Allows
you to
G: Groups CTRL+G Create a
Stock
Group.

Allows
you to
I: Items CTRL+I Create a
Stock
Item.

Allows
you to
U: Units CTRL+U Create a
Unit of
Measure.

Allows
O: you to
Godown CTRL+O Create a
Godown.
 Allows
you to
V: Vch CTRL+V Create a
Types Voucher
Types

Note: Category and Godown buttons are visible only if you opted for the same in F11: Features.

Creating Stock Items with Advanced Entries and Costing M

For the advanced mode, including selection of costing methods, you have to enable advanced configuration and features for st

The advance configuration parameters for stock item master under F12: Configure (Master Configuration) are shown below:

The advanced features for stock items in F11: Features are shown below:

Note: You can configure the entire setup according to your requirements. According to the configuration in F12 and F11 , stock
1. Go to Gateway of Tally > Inventory Info > Stock Items > Create (under Single Stock Item)

2. This Part No. field gets enabled only after enabling Use Part Number for stock items in Inventory Master Configuration. This

3. The Description field gets enabled only after enabling Use Description for Stock Items in Inventory Master Configuration. Th

4. This Remarks field gets enabled only after enabling Use Remarks for Stock Items in Inventory Master configuration. This field

5. Set/modify default ledgers for invoicing? : This option gets enabled only after enabling Specify Default Ledger Allocation for
Note: This option is useful only in case of Invoice entry through Voucher Class.

6. This Category field gets enabled only after enabling Maintain stock categories in Inventory Master Features. This field will sh

Note: You can create a new stock category by pressing ALT+C at this field.

7. Alternative Units are individual units similar to simple units, which can be used instead of another simple unit during Invoici

For example:

Wheat Flour bag of 1 Kgs can be sold in Nos and the weekly /monthly sale or tonnage of wheat flour can be measured in Kgs o

o This option gets enabled only after enabling Maintain batch-wise details in Inventory Master Features. If you want to maint

o The option Track Date of manufacturing? is enabled only when Maintain in Batches? is set to Yes . If you want to specify the

o The option Use expiry dates gets enabled only after enabling Set expiry dates for batches under Maintain batch-wise detai

o The option Set components (BOM) gets enabled only after enabling Allow Component List Details (Bills of Material) in Invent

o The option Set standard rates gets enabled only after enabling Allow Std. Rates for Stock Items in Inventory Master Configu

The standards are effective from the specified dates and they continue to be used at these rates until the next date, where the

Note: Standard Rates can also be used for valuation of closing stock.
o The option Behaviour Group is enabled once you enable Allow Advanced Entries in Masters option. Options available under

o This field will display the List of Costing Method for valuating the Stock Item.

Depending upon the stock item, you can select the costing method for valuating the Stock item.

● At Zero Cost : Cost of an item is considered as zero. For example, for defective items that have no commercial value.

● Avg.Cost :

● Periodic system :

This is also known as Weighted Average Cost. The weighted average cost for the whole year is computed as below:

● Monthly system :

In monthly average cost, weighted average cost is determined on a monthly basis instead of annual.

FIFO (First-in, First-Out):

● Periodic System : Under FIFO Periodic System, it is assumed that items purchased first are sold first under the current financi

● Perpetual System : Under FIFO Perpetual system, it is assumed that items purchased first are sold first across the financial ye

● Last Purchase cost : Last purchase cost is Last purchase rate. Cost of goods sold and Cost of inventory is based upon the Last
LIFO (Last-in, First-Out)

● Periodic system: Under LIFO, it is assumed that items purchased last are sold first under the current financial year (i.e., first lo

● Perpetual System: Under LIFO Perpetual system, it is assumed that items purchased last are sold first across the financial yea

So cost of goods sold is based upon the cost of materials received last in the period, while the cost of inventory is based upon t

Standard Cost

Standard Cost is Standard Rates specified in the Inventory master.

Cost of goods sold and Cost of inventory is based upon the Standard Rates.

Market valuation method

By using Market valuation method, you can determine the realisable worth of an Item.

Unrealised Profit of an Item = Closing value as per Costing Method – Closing value as per Market valuation method.

Select the appropriate method applicable for the Item from the Valuation Methods List.

o At Zero Price : Realisable price of an item is considered as zero. For example, for defective items that have no realisable valu

o Avg. Price : Weighted Average is computed as the sum of all invoice value / sum of all invoice quantity for the financial year.

o Last Sale Price : Item is valued at Last Sale Price.

o Standard Price : User specified rate applicable for the current date specified in Item master under Standard Rate is taken as

● Ignore difference due to physical counting? : In Tally.ERP 9, you can record the physical stock as counted, using a physical sto

● Ignore negative balances? : If you set this to Yes , Tally.ERP 9 ignores the item in the stock reports, in case it has a negative ba

● Treat all sales as new manufacture? : If you set this to Yes , whenever a sales entry is made, Tally.ERP 9 automatically update

● Treat all purchases as consumed? : If you set this to Yes , then, whenever a purchase entry is made, Tally.ERP 9 automatically
● Treat all rejections inward as scrap? : If you set this to Yes , then, whenever a rejection inward entry has been made [withou

● Allow use of expired batches? :This option will get enabled once you enable the Use expiry dates under Maintain in Batches

Displaying a Stock Item

You can display the existing Single Stock Item master and Multiple Stock Item masters, since it is only display you are not allowe

To display a Single Stock Item

1. Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Single Stock Item).

2. Select the Stock Item you want to display from the List of Items . The Stock Item Display screen is displayed as shown.

To display a Multiple Stock Item

1. Go to Gateway of Tally > Inventory Info > Stock Items > Display (under Multiple Stock Item).
2. Select a Stock Group or All Items from List of Groups to display the Stock Item under the selected group or All Items. The Mu
Altering a Stock Item
This option allows you to view and change the details for the existing Single Stock Item master and Multiple Stock Item maste

To Alter a Single Stock Item

1. Go to Gateway of Tally > Inventory Info . > Stock Items > Alter ( Single Stock Item ).

2. Select the required Stock Item from the List of Items . The Stock Item Alteration screen appears as shown below:
3. Press Ctrl+A to accept.

To alter Multiple Stock Items

1. Go to Gateway of Tally > Inventory Info . > Stock Items > Alter ( Multiple Stock Items ).

2. Select a stock group from the List of Groups to alter the stock item under the selected group or under All Items . The Multi S
Note: In the Multi Stock Item Alteration screen , you can create an item by entering the item name after the last item, but you
d is the lowest level of information on your inventory. You have to create a Stock Item in Tally.ERP 9 for each inventory item that you want to

ntory entity. Stock Items in the Inventory transactions are similar to ledgers being used in accounting transactions.
the Stock Item belongs. By default, Primary Stock Group appears in this field.

or the stock item. By default, Not Applicable appears in this field.

f excise duty or if duty is based on item rate. During Invoicing, whenever you select a Stock Item, the Rate of duty entered here is displayed

eld will not be visible.

or used when Excise features is activated for the company.

and Rate. You can also edit the value, Tally.ERP 9 automatically refreshes the Rate field accordingly.
es and Costing Methods
configuration and features for stock item master in F12: Configure and F11: Features .

nfiguration) are shown below:

figuration in F12 and F11 , stock item master fields will get added and removed.
ntory Master Configuration. This field is used to enter the Vendors catalogue number. You can also optionally print it in reports/invoices.

entory Master Configuration. This field is used to enter the description of the Stock Item as it is required to be printed in Quotations, Delive

y Master configuration. This field is used to enter Remarks for the Stock Item (for internal use only). Any additional details about the Item c

cify Default Ledger Allocation for Invoicing in Inventory Master Configuration. Once you enable this option, a screen will be displayed for se
Master Features. This field will show the List of Categories . Here you can select the Stock Category under which the stock Item belongs. By

nother simple unit during Invoicing / voucher entry and are also useful in displaying the stock reports alternatively in another simple unit. T

t flour can be measured in Kgs or vice versa. Here, in this both Nos and Kgs are simple units, which can be alternatively used.

er Features. If you want to maintain the batch information of Stock Items, set the option Maintain in Batches to Yes .

to Yes . If you want to specify the manufacturing date for the item, set Track Date of Mfg . to Yes .

nder Maintain batch-wise details option in Inventory Features. If you want to specify the expiry date of the item, set Use expiry dates to Ye

etails (Bills of Material) in Inventory Master Configuration. Refer to Bills of Material for more details.

ems in Inventory Master Configuration. This option helps you specify standard purchase rate and standard sales rates for the item.

es until the next date, where the standard rate changes.

s option. Options available under Behaviour Group are:

ve no commercial value.

computed as below:

old first under the current financial year (i.e., first lot from the opening stock of current year).

e sold first across the financial year (i.e., first lot may be from previous year entry). So cost of goods sold is based upon the cost of material

nventory is based upon the Last purchase rate.

current financial year (i.e., first lot from the opening stock of current year)

sold first across the financial year (i.e., first lot may be from previous year entry).

cost of inventory is based upon the cost of material received first in the period.

et valuation method.

tems that have no realisable value in the market.

e quantity for the financial year.

under Standard Rate is taken as the realizable rate.

k as counted, using a physical stock voucher. If you wish to ignore the difference and continue with the stock as per books, set this option to

ports, in case it has a negative balance.

Tally.ERP 9 automatically updates the quantity and value in inward by treating the same entry as a New manufacture or purchase.

s made, Tally.ERP 9 automatically updates the quantity and value in outward by treating the same entry as consumed.
rd entry has been made [without tracking number], Tally.ERP 9 automatically reduces the amount from the closing stock balance. In this ca

dates under Maintain in Batches option. If you set this to Yes , during selection of batches in voucher entry, expiry batches also get included

is only display you are not allowed to alter any information in display mode.

en is displayed as shown.
ected group or All Items. The Multi Stock Item display screen is displayed as shown below:
and Multiple Stock Item masters. If a transaction is entered for a stock item, it is not possible to alter the units or delete the stock item.

ars as shown below:

or under All Items . The Multi Stock Item Alteration screen appears as shown below:
ame after the last item, but you cannot delete an item.
h inventory item that you want to account for.
of duty entered here is displayed in the Invoice creation screen.
y print it in reports/invoices.

be printed in Quotations, Delivery Challan/Invoice.

ditional details about the Item can be entered here.

a screen will be displayed for selecting the default ledger allocation for sales and purchase for the stock item.
which the stock Item belongs. By default, Not Applicable is displayed in this field.

natively in another simple unit. This is particularly useful when you need to handle different units at different times. This Alternate Units fie

alternatively used.

e item, set Use expiry dates to Yes . This option is useful for stock items like medicines, Food items, etc.

sales rates for the item.

based upon the cost of material received first in the period, while the cost of inventory is based upon the cost of material received last in th
k as per books, set this option to Yes .

anufacture or purchase.
e closing stock balance. In this case, you need not pass the credit note for reducing the value against rejection inward. This is used for defec

expiry batches also get included in the List of Active Batch .

units or delete the stock item.
nt times. This Alternate Units field gets enabled only after enabling Use Alternate Units for Stock Item in Inventory Master Configuration.
ost of material received last in the period.
on inward. This is used for defective items returned by the customer.
nventory Master Configuration.
Creating Simple Unit of Measure
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. In such cases, it

To create Simple Units of Measure

1. Go to Gateway of Tally > Inventory Info > Units of Measure > Create. The Unit Creation screen is displayed as shown below:

This field will show the Type of Units.

● Simple

● Compound.

Simple units are nos, pcs , and so on. Compound unit is a combination of two simple units.

By default Tally.ERP 9 will show the Simple unit for creating the unit of measure.

You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the previous field].

2. Define the Symbol of the unit, for example, Nos. This symbol is used in all displays and printouts.

3. Specify the Formal Name of the symbol, for example, Numbers. This formal name is useful during the consolidation of data

4. In this field you can specify the Number decimal places for the Units from 0 to 4. This field is useful for Units measured in fra

For example, Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places req

See also
Creating Compound Units of Measure

Altering a Units of Measure

Displaying a Units of Measure

Creating Compound Unit of Measure

A Compound Unit is a relation between two Simple Units. Hence, before you create a Compound Unit, ensure that you have al

For example, To Create Compound unit – Doz (Dozen) of 12 Nos (Numbers), you have to create two simple units, Doz (Dozen) a

1. Go to Gateway of Tally > Inventory Info > Units of Measure > Create. The Unit Creation screen is displayed as shown. Now Cli

2. Select Compound from the Types of Units and press Enter. The Conversion field will be displayed for creating Compound uni

3. Select the First unit from the Units List. In the above example, Dozen will be the First Unit.

4. Specify the Conversion Factor. In the above example, Conversion factor will be 12.

5. Specify the Second Unit from the Units List. In the above example, Number will be the Second Unit. This unit is also called Ta

6. Use CTRL + A or Accept the Screen for Saving of Compound Unit Creation.
Altering Units of Measure
You can alter the units of measurement created in Tally.ERP 9.

To alter Units of measurement

1. Go to Gateway of Tally > Inventory Info. > Units of Measure > Alter .

2. Select the Name of Unit you want to alter from the Units list. The Unit Alteration screen appears as shown below:

3. Make the necessary changes.

4. Press Ctrl+A to accept.

You can delete a unit of measure by pressing Alt+D . However, a unit of measure that is part of a compound measure cannot be

Displaying Units of Measure

You can display the existing Units of Measure, since it is only display Tally.ERP 9 does not allow you to alter any information in d

To display Units of Measure

1. Go to Gateway of Tally > Inventory Info. > Units of Measure > Display.

2. Select the Unit of Measure you would like to view from the Units list. You can select a compound unit or a simple unit from t
Note: In display mode it is not possible to make any changes.
asured by units. In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or compound. Exam

n is displayed as shown below:

go to the previous field].

during the consolidation of data of different companies, where the symbols might be the same but are assigned to different units. The form

s useful for Units measured in fractions.

t, number of decimal places required is 3

nd Unit, ensure that you have already created two Simple Units.

two simple units, Doz (Dozen) and Nos (Numbers) and set the conversion factor as 12.

n is displayed as shown. Now Click on Type field or Press SHIFT + TAB or Press Backspace Key.

ayed for creating Compound unit.

nd Unit. This unit is also called Tail Unit.

pears as shown below:

a compound measure cannot be deleted without deleting the compound measure first.

you to alter any information in display mode.

ound unit or a simple unit from the list. The Unit Display screen is displayed as shown below:
er be simple or compound. Examples of simple units are: nos., metres, kilograms, pieces etc.

gned to different units. The formal name will be used to match them.
Bill of Materials
A Bill of Materials is a list of constituent items along with quantity details that can be allotted for the manufacture of a certain

Bill of
Material
(BoM) is
created
only for
those
items
that are
being
assemble
d in-
house.
Therefore
, you
need to
specify a
BoM at
the time
of
creating a
Stock
Item or
while
altering
the stock
item. For
trading
items,
you do
not need
a BoM.

To know more, click the links below:

● Creating Single Bill of Materials for a Stock Item

● Creating Manufacturing Journal for a Stock Item with Single Bill of Materials

● Creating Multiple Bill of Materials for a Stock Item

● Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials

● Creating Single/Multiple Bill of Material with Type of Item

● Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with Type of Item

Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure .

To setup Bill of Materials

● Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

● Set Enable component list details (Bill of Materials)? to Yes .

OR

● Go to Gateway of Tally > Inventory Info > Stock Items > Create.

● Press F12: Configure (Stock Item Configuration) and set Enable component list details (Bill of Materials)? to Yes.

For a Stock Item you can create

● A Single BOM

● Multiple BOM

● Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Comp

3. Press Enter to view Stock Item Multi Components (M BOM) screen

4. In Stock Item Multi Components (M BOM) screen

o Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) scree

5. In Stock Item Components (BOM) screen:

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of manufacture : Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be
Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventor

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs . The Quantity of inputs consumed to manufacturer finished goods

o Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials . All the manufacturing transactions can be acco

o To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufactu

o Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.

7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal , a pop-up me

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen
o Name of Product : Select the product which needs to be manufactured from the List of Items.

o BoM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

o Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

o Quantity : In this field specify the quantity of finished goods manufactured.

o Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished go

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can creat

This feature will be useful where you are using different components to manufacture the same stock item based on the custom

Example : Customer A wants Television to be manufactured with specific brand of Picture Tube . Where as other customers has
To create multiple Bill of Material

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate stock group and specify the appropriate unit of measurement in Unit fie

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes and

o In Stock Item Multi Components (M BOM) screen, under Name of BOM specify component list Name - Customer A a nd pre

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to ide

o In Stock Item Components (BOM) screen: BOM Name : By default the BOM Name specified in Stock Item Multi Componen

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

o Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen

o In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field

o In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown
Note: In the above scenario for Stock item - Television we have created 2 BOM . Similarly you can create multiple BOM with diff

3. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materi
In Manufacturing Journal voucher

1. Name of Product : Select the product which needs to be manufactured from the List of Items.

2. BoM Name : In this field Tally.ERP 9 displays the BOM List for selection of BOM , as multiple BOM are created for the finished
Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

3. Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

4. Quantity : In this field specify the quantity of finished goods manufactured.

5. Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

Creating Single/Multiple Bill Of Material with Type of Item

In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to ma

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Produc

Let us take the case of manufacture of Sugar and create the BOM for the stock Item.

To create Bill of Material with Type of Item

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .
2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o 2. Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes a

3. In Stock Item Multi Components (M BOM) screen:

o Under Name of BOM specify component list Name as - Standard.

4. In Stock Item Components (BOM) screen,

o In F12: Configuration , enable the option Define Type of Component for BOM to Yes.

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new colu

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be
o Type of Item : In this field select the appropriate type for the item selected.

o By-Product : Select this classification for the stock items which are produced as By-Product of finished goods

o Component : Select this classification for the Raw materials /inputs which are used or consumed for the production of finish

o Co-Product : Select this classification for the stock items which are produced as Co-product of finished goods

o Scrap : Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Product

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption .

o Rate (%) : In this field you can specify the percentage of cost of components to be considered to determine the cost of prod

Note: If the Component Type selected is Co-product/By-Product or Scrap , cursor will move to Rate (%) column to define the pe

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component) . Bagasse & Molasses are identi

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the sto
o Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If requ

o Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM c

In Manufacturing Journal voucher:

● Name of Product : Select the product which needs to be manufactured from the List of Items.

● BOM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application dis

Note: Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption) side

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side

The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

● Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

● Quantity : In this field specify the quantity of finished goods manufactured.

● Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

● Co-Products / By-Products / Scrap : In this section the co-products/ by-products/scrap produced during manufacture of finish
Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Qu

● % of Cost : In this field, the percentage specified in Rate (%) column for the By-products/Co-Products or scrap while creating

For field description refer Manufacturing Journals .

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

For example, for stock item Television, ABC company has 2 BOM - Customer A and Standard . Now company wants to create a n

To create the BOM

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Alteration:

o Alter Components (BOM) : To create the component list required to manufacture the Finished goods enable this option to Y

o In Stock Item Multi Components (M BOM) screen

o The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key )

o Enter the BOM Name - Customer B.

o Press Enter to view Stock Item Components (BOM) screen

o In Stock Item Components (BOM) screen

o To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

o In Copy BoM Details screen, Copy Component for BOM : In this field select the BOM from which the components to be copi

o Press Enter . The components of Standard BoM will get copied to BOM - Customer B .

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen
o Item : In this field select the Picture Tube - LG and Retain other items/components.

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture an

Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure .

To setup Bill of Materials

● Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

● Set Enable component list details (Bill of Materials)? to Yes .

OR

● Go to Gateway of Tally > Inventory Info > Stock Items > Create.

● Press F12: Configure (Stock Item Configuration) and set Enable component list details (Bill of Materials)? to Yes.

For a Stock Item you can create

● A Single BOM
● Multiple BOM

● Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Comp

3. Press Enter to view Stock Item Multi Components (M BOM) screen

4. In Stock Item Multi Components (M BOM) screen

o Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) scree
5. In Stock Item Components (BOM) screen:

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of manufacture : Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventor

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs . The Quantity of inputs consumed to manufacturer finished goods

o Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials . All the manufacturing transactions can be acco

o To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufactu

o Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.
7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal , a pop-up me

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

o Name of Product : Select the product which needs to be manufactured from the List of Items.

o BoM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

o Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

o Quantity : In this field specify the quantity of finished goods manufactured.

o Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o
Creating Multiple Bill Of Material for a Stock Item
Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished go

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can creat

This feature will be useful where you are using different components to manufacture the same stock item based on the custom

Example : Customer A wants Television to be manufactured with specific brand of Picture Tube . Where as other customers has

To create multiple Bill of Material

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate stock group and specify the appropriate unit of measurement in Unit fie

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes and

o In Stock Item Multi Components (M BOM) screen, under Name of BOM specify component list Name - Customer A a nd pre

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to ide

o In Stock Item Components (BOM) screen: BOM Name : By default the BOM Name specified in Stock Item Multi Componen

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.
o Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen

o In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field

o In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

Note: In the above scenario for Stock item - Television we have created 2 BOM . Similarly you can create multiple BOM with diff

3. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materi
In Manufacturing Journal voucher
1. Name of Product : Select the product which needs to be manufactured from the List of Items.

2. BoM Name : In this field Tally.ERP 9 displays the BOM List for selection of BOM , as multiple BOM are created for the finished

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

3. Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

4. Quantity : In this field specify the quantity of finished goods manufactured.

5. Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o
Creating Single/Multiple Bill Of Material with Type of Item
In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to ma

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Produc

Let us take the case of manufacture of Sugar and create the BOM for the stock Item.

To create Bill of Material with Type of Item

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o 2. Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes a

3. In Stock Item Multi Components (M BOM) screen:

o Under Name of BOM specify component list Name as - Standard.

4. In Stock Item Components (BOM) screen,

o In F12: Configuration , enable the option Define Type of Component for BOM to Yes.
On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new colu

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Type of Item : In this field select the appropriate type for the item selected.

o By-Product : Select this classification for the stock items which are produced as By-Product of finished goods

o Component : Select this classification for the Raw materials /inputs which are used or consumed for the production of finish

o Co-Product : Select this classification for the stock items which are produced as Co-product of finished goods

o Scrap : Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Product

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption .

o Rate (%) : In this field you can specify the percentage of cost of components to be considered to determine the cost of prod

Note: If the Component Type selected is Co-product/By-Product or Scrap , cursor will move to Rate (%) column to define the pe

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown
Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component) . Bagasse & Molasses are identi

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the sto

o Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If requ

o Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM c

In Manufacturing Journal voucher:

● Name of Product : Select the product which needs to be manufactured from the List of Items.

● BOM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application dis

Note: Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption) side

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side
The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

● Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

● Quantity : In this field specify the quantity of finished goods manufactured.

● Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

● Co-Products / By-Products / Scrap : In this section the co-products/ by-products/scrap produced during manufacture of finish

Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Qu

● % of Cost : In this field, the percentage specified in Rate (%) column for the By-products/Co-Products or scrap while creating

For field description refer Manufacturing Journals .

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

For example, for stock item Television, ABC company has 2 BOM - Customer A and Standard . Now company wants to create a n
To create the BOM

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Alteration:

o Alter Components (BOM) : To create the component list required to manufacture the Finished goods enable this option to Y

o In Stock Item Multi Components (M BOM) screen

o The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key )

o Enter the BOM Name - Customer B.

o Press Enter to view Stock Item Components (BOM) screen

o In Stock Item Components (BOM) screen

o To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

o In Copy BoM Details screen, Copy Component for BOM : In this field select the BOM from which the components to be copi
o Press Enter . The components of Standard BoM will get copied to BOM - Customer B .

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field select the Picture Tube - LG and Retain other items/components.

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture an

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Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure .

To setup Bill of Materials

● Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

● Set Enable component list details (Bill of Materials)? to Yes .

OR

● Go to Gateway of Tally > Inventory Info > Stock Items > Create.

● Press F12: Configure (Stock Item Configuration) and set Enable component list details (Bill of Materials)? to Yes.

For a Stock Item you can create

● A Single BOM

● Multiple BOM

● Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes
Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Comp

3. Press Enter to view Stock Item Multi Components (M BOM) screen

4. In Stock Item Multi Components (M BOM) screen

o Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) scree

5. In Stock Item Components (BOM) screen:

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of manufacture : Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventor

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs . The Quantity of inputs consumed to manufacturer finished goods
o Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials . All the manufacturing transactions can be acco

o To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufactu

o Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.

7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal , a pop-up me

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

o Name of Product : Select the product which needs to be manufactured from the List of Items.

o BoM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

o Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

o Quantity : In this field specify the quantity of finished goods manufactured.

o Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a
Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished go

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can creat

This feature will be useful where you are using different components to manufacture the same stock item based on the custom

Example : Customer A wants Television to be manufactured with specific brand of Picture Tube . Where as other customers has

To create multiple Bill of Material

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate stock group and specify the appropriate unit of measurement in Unit fie

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes and

o In Stock Item Multi Components (M BOM) screen, under Name of BOM specify component list Name - Customer A a nd pre

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to ide
o In Stock Item Components (BOM) screen: BOM Name : By default the BOM Name specified in Stock Item Multi Componen

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

o Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen

o In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field

o In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown
Note: In the above scenario for Stock item - Television we have created 2 BOM . Similarly you can create multiple BOM with diff

3. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materi
In Manufacturing Journal voucher

1. Name of Product : Select the product which needs to be manufactured from the List of Items.

2. BoM Name : In this field Tally.ERP 9 displays the BOM List for selection of BOM , as multiple BOM are created for the finished

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

3. Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

4. Quantity : In this field specify the quantity of finished goods manufactured.

5. Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o
Creating Single/Multiple Bill Of Material with Type of Item
In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to ma

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Produc

Let us take the case of manufacture of Sugar and create the BOM for the stock Item.

To create Bill of Material with Type of Item

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o 2. Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes a

3. In Stock Item Multi Components (M BOM) screen:

o Under Name of BOM specify component list Name as - Standard.

4. In Stock Item Components (BOM) screen,

o In F12: Configuration , enable the option Define Type of Component for BOM to Yes.

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new colu

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Type of Item : In this field select the appropriate type for the item selected.

o By-Product : Select this classification for the stock items which are produced as By-Product of finished goods

o Component : Select this classification for the Raw materials /inputs which are used or consumed for the production of finish

o Co-Product : Select this classification for the stock items which are produced as Co-product of finished goods

o Scrap : Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.
o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Product

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption .

o Rate (%) : In this field you can specify the percentage of cost of components to be considered to determine the cost of prod

Note: If the Component Type selected is Co-product/By-Product or Scrap , cursor will move to Rate (%) column to define the pe

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component) . Bagasse & Molasses are identi

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the sto

o Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If requ

o Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM c

In Manufacturing Journal voucher:

● Name of Product : Select the product which needs to be manufactured from the List of Items.

● BOM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli
For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application dis

Note: Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption) side

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side

The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

● Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

● Quantity : In this field specify the quantity of finished goods manufactured.

● Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

● Co-Products / By-Products / Scrap : In this section the co-products/ by-products/scrap produced during manufacture of finish

Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Qu

● % of Cost : In this field, the percentage specified in Rate (%) column for the By-products/Co-Products or scrap while creating
For field description refer Manufacturing Journals .

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

For example, for stock item Television, ABC company has 2 BOM - Customer A and Standard . Now company wants to create a n

To create the BOM

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Alteration:

o Alter Components (BOM) : To create the component list required to manufacture the Finished goods enable this option to Y

o In Stock Item Multi Components (M BOM) screen

o The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key )

o Enter the BOM Name - Customer B.

o Press Enter to view Stock Item Components (BOM) screen

o In Stock Item Components (BOM) screen

o To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen
o In Copy BoM Details screen, Copy Component for BOM : In this field select the BOM from which the components to be copi

o Press Enter . The components of Standard BoM will get copied to BOM - Customer B .

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field select the Picture Tube - LG and Retain other items/components.
Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture an

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Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure .

To setup Bill of Materials

● Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

● Set Enable component list details (Bill of Materials)? to Yes .

OR

● Go to Gateway of Tally > Inventory Info > Stock Items > Create.

● Press F12: Configure (Stock Item Configuration) and set Enable component list details (Bill of Materials)? to Yes.

For a Stock Item you can create

● A Single BOM

● Multiple BOM

● Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Comp

3. Press Enter to view Stock Item Multi Components (M BOM) screen

4. In Stock Item Multi Components (M BOM) screen

o Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) scree

5. In Stock Item Components (BOM) screen:

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.
o Unit of manufacture : Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventor

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs . The Quantity of inputs consumed to manufacturer finished goods

o Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials . All the manufacturing transactions can be acco

o To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufactu

o Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.

7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal , a pop-up me
Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

o Name of Product : Select the product which needs to be manufactured from the List of Items.

o BoM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

o Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

o Quantity : In this field specify the quantity of finished goods manufactured.

o Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished go

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can creat
This feature will be useful where you are using different components to manufacture the same stock item based on the custom

Example : Customer A wants Television to be manufactured with specific brand of Picture Tube . Where as other customers has

To create multiple Bill of Material

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate stock group and specify the appropriate unit of measurement in Unit fie

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes and

o In Stock Item Multi Components (M BOM) screen, under Name of BOM specify component list Name - Customer A a nd pre

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to ide

o In Stock Item Components (BOM) screen: BOM Name : By default the BOM Name specified in Stock Item Multi Componen

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.
o Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen

o In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field

o In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

Note: In the above scenario for Stock item - Television we have created 2 BOM . Similarly you can create multiple BOM with diff

3. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materi
In Manufacturing Journal voucher

1. Name of Product : Select the product which needs to be manufactured from the List of Items.

2. BoM Name : In this field Tally.ERP 9 displays the BOM List for selection of BOM , as multiple BOM are created for the finished
Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

3. Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

4. Quantity : In this field specify the quantity of finished goods manufactured.

5. Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

Creating Single/Multiple Bill Of Material with Type of Item

In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to ma

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Produc
Let us take the case of manufacture of Sugar and create the BOM for the stock Item.

To create Bill of Material with Type of Item

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o 2. Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes a

3. In Stock Item Multi Components (M BOM) screen:

o Under Name of BOM specify component list Name as - Standard.

4. In Stock Item Components (BOM) screen,

o In F12: Configuration , enable the option Define Type of Component for BOM to Yes.

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new colu

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen
o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Type of Item : In this field select the appropriate type for the item selected.

o By-Product : Select this classification for the stock items which are produced as By-Product of finished goods

o Component : Select this classification for the Raw materials /inputs which are used or consumed for the production of finish

o Co-Product : Select this classification for the stock items which are produced as Co-product of finished goods

o Scrap : Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Product

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption .

o Rate (%) : In this field you can specify the percentage of cost of components to be considered to determine the cost of prod

Note: If the Component Type selected is Co-product/By-Product or Scrap , cursor will move to Rate (%) column to define the pe

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown
Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component) . Bagasse & Molasses are identi

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the sto

o Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If requ

o Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM c

In Manufacturing Journal voucher:

● Name of Product : Select the product which needs to be manufactured from the List of Items.

● BOM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application dis

Note: Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption) side

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side

The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

● Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

● Quantity : In this field specify the quantity of finished goods manufactured.

● Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a
Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

● Co-Products / By-Products / Scrap : In this section the co-products/ by-products/scrap produced during manufacture of finish

Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Qu

● % of Cost : In this field, the percentage specified in Rate (%) column for the By-products/Co-Products or scrap while creating

For field description refer Manufacturing Journals .

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

For example, for stock item Television, ABC company has 2 BOM - Customer A and Standard . Now company wants to create a n

To create the BOM

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Alteration:

o Alter Components (BOM) : To create the component list required to manufacture the Finished goods enable this option to Y

o In Stock Item Multi Components (M BOM) screen

o The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key )

o Enter the BOM Name - Customer B.

o Press Enter to view Stock Item Components (BOM) screen

o In Stock Item Components (BOM) screen

o To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

o In Copy BoM Details screen, Copy Component for BOM : In this field select the BOM from which the components to be copi

o Press Enter . The components of Standard BoM will get copied to BOM - Customer B .
o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field select the Picture Tube - LG and Retain other items/components.

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture an

Rate this article*

E-mail id
Contact Number

Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure .

To setup Bill of Materials

● Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

● Set Enable component list details (Bill of Materials)? to Yes .

OR

● Go to Gateway of Tally > Inventory Info > Stock Items > Create.

● Press F12: Configure (Stock Item Configuration) and set Enable component list details (Bill of Materials)? to Yes.
For a Stock Item you can create

● A Single BOM

● Multiple BOM

● Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Comp

3. Press Enter to view Stock Item Multi Components (M BOM) screen

4. In Stock Item Multi Components (M BOM) screen

o Under Name of BOM specify component list Name - Standard and press enter to view Stock Item Components (BOM) scree

5. In Stock Item Components (BOM) screen:

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of manufacture : Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventor

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Television we require 5 different inputs . The Quantity of inputs consumed to manufacturer finished goods

o Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials . All the manufacturing transactions can be acco
o To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufactu

o Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.

7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal , a pop-up me

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

o Name of Product : Select the product which needs to be manufactured from the List of Items.

o BoM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

o Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

o Quantity : In this field specify the quantity of finished goods manufactured.

o Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o
Creating Multiple Bill Of Material for a Stock Item
Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished go

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can creat

This feature will be useful where you are using different components to manufacture the same stock item based on the custom

Example : Customer A wants Television to be manufactured with specific brand of Picture Tube . Where as other customers has

To create multiple Bill of Material

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate stock group and specify the appropriate unit of measurement in Unit fie

o Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes and

o In Stock Item Multi Components (M BOM) screen, under Name of BOM specify component list Name - Customer A a nd pre

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to ide

o In Stock Item Components (BOM) screen: BOM Name : By default the BOM Name specified in Stock Item Multi Componen

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be
o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods.

o Press Enter to save the Stock Item components for BOM - Customer A and to view Stock Item Multi Component screen

o In Stock Item Multi Component screen enter the second Bill of Material name- Standard in Name of BOM field

o In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

Note: In the above scenario for Stock item - Television we have created 2 BOM . Similarly you can create multiple BOM with diff
3. Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materi
In Manufacturing Journal voucher

1. Name of Product : Select the product which needs to be manufactured from the List of Items.

2. BoM Name : In this field Tally.ERP 9 displays the BOM List for selection of BOM , as multiple BOM are created for the finished

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption)

3. Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

4. Quantity : In this field specify the quantity of finished goods manufactured.

5. Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o
Creating Single/Multiple Bill Of Material with Type of Item
In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to ma

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Produc

Let us take the case of manufacture of Sugar and create the BOM for the stock Item.

To create Bill of Material with Type of Item

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Creation screen:

o Enter the Stock Item Name , select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit fi

o 2. Set Component List : To create the component list required to manufacture the Finished goods enable this option to Yes a

3. In Stock Item Multi Components (M BOM) screen:

o Under Name of BOM specify component list Name as - Standard.

4. In Stock Item Components (BOM) screen,

o In F12: Configuration , enable the option Define Type of Component for BOM to Yes.
On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new colu

o BOM Name : By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and ap

o Components of : In this field application displays the Name of the Stock Item for which the components are defined.

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field identify the raw materials which are required to manufacture the finished goods

o Godown : If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be

o Type of Item : In this field select the appropriate type for the item selected.

o By-Product : Select this classification for the stock items which are produced as By-Product of finished goods

o Component : Select this classification for the Raw materials /inputs which are used or consumed for the production of finish

o Co-Product : Select this classification for the stock items which are produced as Co-product of finished goods

o Scrap : Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

o Quantity : In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Product

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption .

o Rate (%) : In this field you can specify the percentage of cost of components to be considered to determine the cost of prod
Note: If the Component Type selected is Co-product/By-Product or Scrap , cursor will move to Rate (%) column to define the pe

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component) . Bagasse & Molasses are identi

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the sto

o Press Enter to save the Stock Item components for BOM - Standard and to view Stock Item Multi Component screen. If requ

o Specify other required details in the stock item master and accept the screen.

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM c

In Manufacturing Journal voucher:

● Name of Product : Select the product which needs to be manufactured from the List of Items.

● BOM Name : In this field the BoM created for the stock item will be displayed automatically with one more option Not Appli

For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application dis
Note: Based on the BOM selected

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption) side

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side

The default of Raw Materials & Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

● Godown : Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when Maintain multiple Godown feature is enabled in F11: Features (Inventory Fe

● Quantity : In this field specify the quantity of finished goods manufactured.

● Components (Consumption) : In this section the components required to manufacture the finished goods will be displayed a

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity o

● Co-Products / By-Products / Scrap : In this section the co-products/ by-products/scrap produced during manufacture of finish

Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Qu

● % of Cost : In this field, the percentage specified in Rate (%) column for the By-products/Co-Products or scrap while creating

For field description refer Manufacturing Journals .

Copy Components of BOM
In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

For example, for stock item Television, ABC company has 2 BOM - Customer A and Standard . Now company wants to create a n

To create the BOM

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .

2. In Stock Item Alteration:

o Alter Components (BOM) : To create the component list required to manufacture the Finished goods enable this option to Y

o In Stock Item Multi Components (M BOM) screen

o The Existing BOMs - Customer A and Standard are displayed (to move down use Down Arrow Key )

o Enter the BOM Name - Customer B.

o Press Enter to view Stock Item Components (BOM) screen

o In Stock Item Components (BOM) screen

o To copy bill of material, Click on Copy BOM button on the Buttons Bar or press Ctrl +C to view Copy BoM Details screen

o In Copy BoM Details screen, Copy Component for BOM : In this field select the BOM from which the components to be copi
o Press Enter . The components of Standard BoM will get copied to BOM - Customer B .

o Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the componen

o Item : In this field select the Picture Tube - LG and Retain other items/components.

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture an

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Creating a Manufacturing Journal Voucher Type
In Manufacturing/Assembling organisations, there are number of components that go into the manufacturing/ assembling of fi

To create a Manufacturing Journal Voucher Type

1. Go to Gateway of Tally > Inventory Info. > Voucher Types > Create.

2. Enter the Name of the Voucher for ex: Manufacturing Journal

3. Select Stock Journal from the List of Voucher Types

4. You can select the method of voucher numbering in the field Method of voucher numbering , as required.

5. Enable the option Use advance configuration, as required.

6. For more details refer Creating a Voucher Type with Advanced Configuration

7. Set this option Use a Manufacturing Journal to Yes. Once this option is set to Yes, you will be able to record Manufacturing J

8. You can also alter the existing Stock Journal Voucher type and set Use as a Manufacturing Journal to Yes .

9. Go to Gateway of Tally > Inventory Info. > Voucher type > Alter > Stock Journal.

Note : Once the Stock Journal is altered to enable the option Use as a Manufacturing Journal , all stock journal vouchers will be
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or the manufacture of a certain product, by-product or likewise. This facilitates immediate reduction in stock of the item automatically. Thi
2: Configure .

Materials)? to Yes.

re finished goods.
e Unit of Measurement in Unit field

ods enable this option to Yes

configuration option Allow Component list details (Bill of Material) ,option will display in item master only on entering/ specifying the unit o

Item Components (BOM) screen

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

ufactured by using the components identified in the component list.

ms from where the items will be used for manufacture.

abled in F11: Features (Inventory Features)

nished goods.

to manufacturer finished goods is 1 each of 5 different inputs.

cturing transactions can be accounted through a Stock Journal.

g the option Use as a Manufacturing Journal to Yes . Or

turing Journal to Yes.

ufacturing Journal , a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.
 with one more option Not Applicable .

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

finished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown

anufacture a specific finished goods based on the availability of goods or customer requirements.

Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the m

stock item based on the customer requirement

. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as
 unit of measurement in Unit field

ods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

list Name - Customer A a nd press enter to view Stock Item Components (BOM) screen.

ame in Name of BOM field to identify the BOM while recording manufacturing transaction.

d in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name fie

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

nished goods.

m Multi Component screen

Name of BOM field

nd Quantity details as shown

an create multiple BOM with different component list for the stock items.

ultiple Bill of Materials

BOM are created for the finished goods.

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured.

ducts or Scrap may be produced.

nputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

ents as consumption, By-Product/Co-Product/ Scrap.

e Unit of Measurement in Unit field.

goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen.

onents (BOM) screen a new column Type of Item will be displayed.

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

of finished goods

umed for the production of finished goods.

of finished goods

facture of finished goods.

nished goods or the Co- Products/ By-Products /scrap manufactured.

ed to determine the cost of production of Co-products/By-Products/Scrap .

Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.

t) . Bagasse & Molasses are identified as By-Products .

the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock it
Multi Component screen. If required you can create the second BOM for the stock Item

gle/Multiple BOM created with Component Type

with one more option Not Applicable .

BOM are created application displays the BOM list for selection

nents (Consumption) side

cts/By-Products/Scrap side

nt Type defined in BOM.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in BoM.

OM multiplied by the Quantity of finished goods manufactured.

ced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in
in the BOM multiplied by the Quantity of finished goods manufactured.

Products or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-produc

OM to another BOM.

Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tu

ed goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen
 w Copy BoM Details screen

which the components to be copied. Here ABC company is copying the components from Standard .

factured by using the components identified in the component list.

fine the Unit of Manufacture and Quantity of inputs (components).

2: Configure .

Materials)? to Yes.
re finished goods.

e Unit of Measurement in Unit field

ods enable this option to Yes

configuration option Allow Component list details (Bill of Material) ,option will display in item master only on entering/ specifying the unit o

Item Components (BOM) screen

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

ufactured by using the components identified in the component list.

ms from where the items will be used for manufacture.

abled in F11: Features (Inventory Features)

nished goods.

to manufacturer finished goods is 1 each of 5 different inputs.

cturing transactions can be accounted through a Stock Journal.

g the option Use as a Manufacturing Journal to Yes . Or

turing Journal to Yes.

ufacturing Journal , a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

with one more option Not Applicable .

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

finished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown
anufacture a specific finished goods based on the availability of goods or customer requirements.

Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the m

stock item based on the customer requirement

. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as

unit of measurement in Unit field

ods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

list Name - Customer A a nd press enter to view Stock Item Components (BOM) screen.

ame in Name of BOM field to identify the BOM while recording manufacturing transaction.

d in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name fie

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

nished goods.
m Multi Component screen

Name of BOM field

nd Quantity details as shown

an create multiple BOM with different component list for the stock items.

ultiple Bill of Materials

BOM are created for the finished goods.

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured.

ducts or Scrap may be produced.

nputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

ents as consumption, By-Product/Co-Product/ Scrap.

e Unit of Measurement in Unit field.

goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen.
onents (BOM) screen a new column Type of Item will be displayed.

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

of finished goods

umed for the production of finished goods.

of finished goods

facture of finished goods.

nished goods or the Co- Products/ By-Products /scrap manufactured.

ed to determine the cost of production of Co-products/By-Products/Scrap .

Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.
t) . Bagasse & Molasses are identified as By-Products .

the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock it

Multi Component screen. If required you can create the second BOM for the stock Item

gle/Multiple BOM created with Component Type

with one more option Not Applicable .

BOM are created application displays the BOM list for selection

nents (Consumption) side

cts/By-Products/Scrap side
nt Type defined in BOM.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in BoM.

OM multiplied by the Quantity of finished goods manufactured.

ced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in

in the BOM multiplied by the Quantity of finished goods manufactured.

Products or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-produc

OM to another BOM.

Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tu
 ed goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

w Copy BoM Details screen

which the components to be copied. Here ABC company is copying the components from Standard .
factured by using the components identified in the component list.

fine the Unit of Manufacture and Quantity of inputs (components).

2: Configure .
 Materials)? to Yes.

re finished goods.

e Unit of Measurement in Unit field

ods enable this option to Yes

configuration option Allow Component list details (Bill of Material) ,option will display in item master only on entering/ specifying the unit o

Item Components (BOM) screen

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

ufactured by using the components identified in the component list.

ms from where the items will be used for manufacture.

abled in F11: Features (Inventory Features)

nished goods.

to manufacturer finished goods is 1 each of 5 different inputs.

cturing transactions can be accounted through a Stock Journal.

g the option Use as a Manufacturing Journal to Yes . Or

turing Journal to Yes.

ufacturing Journal , a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

with one more option Not Applicable .

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

finished goods will be displayed automatically based on the components defined in the BoM.
 OM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown

anufacture a specific finished goods based on the availability of goods or customer requirements.

Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the m

stock item based on the customer requirement

. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as

unit of measurement in Unit field

ods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

list Name - Customer A a nd press enter to view Stock Item Components (BOM) screen.

ame in Name of BOM field to identify the BOM while recording manufacturing transaction.
d in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name fie

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

nished goods.

m Multi Component screen

Name of BOM field

nd Quantity details as shown

 an create multiple BOM with different component list for the stock items.

ultiple Bill of Materials

BOM are created for the finished goods.

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured.

ducts or Scrap may be produced.

nputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

ents as consumption, By-Product/Co-Product/ Scrap.

e Unit of Measurement in Unit field.

goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen.
onents (BOM) screen a new column Type of Item will be displayed.

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

of finished goods

umed for the production of finished goods.

of finished goods

facture of finished goods.

nished goods or the Co- Products/ By-Products /scrap manufactured.

ed to determine the cost of production of Co-products/By-Products/Scrap .

Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.

t) . Bagasse & Molasses are identified as By-Products .

the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock it

Multi Component screen. If required you can create the second BOM for the stock Item

gle/Multiple BOM created with Component Type

with one more option Not Applicable .

BOM are created application displays the BOM list for selection

nents (Consumption) side

cts/By-Products/Scrap side

nt Type defined in BOM.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in BoM.

OM multiplied by the Quantity of finished goods manufactured.

ced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in

in the BOM multiplied by the Quantity of finished goods manufactured.

Products or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-produc
OM to another BOM.

Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tu

ed goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

w Copy BoM Details screen

which the components to be copied. Here ABC company is copying the components from Standard .

factured by using the components identified in the component list.

fine the Unit of Manufacture and Quantity of inputs (components).

2: Configure .

Materials)? to Yes.

re finished goods.
e Unit of Measurement in Unit field

ods enable this option to Yes

configuration option Allow Component list details (Bill of Material) ,option will display in item master only on entering/ specifying the unit o

Item Components (BOM) screen

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

ufactured by using the components identified in the component list.

ms from where the items will be used for manufacture.

abled in F11: Features (Inventory Features)

nished goods.

to manufacturer finished goods is 1 each of 5 different inputs.

cturing transactions can be accounted through a Stock Journal.

g the option Use as a Manufacturing Journal to Yes . Or

turing Journal to Yes.

ufacturing Journal , a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.
 with one more option Not Applicable .

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

finished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown

anufacture a specific finished goods based on the availability of goods or customer requirements.

Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the m
 stock item based on the customer requirement

. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as

unit of measurement in Unit field

ods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

list Name - Customer A a nd press enter to view Stock Item Components (BOM) screen.

ame in Name of BOM field to identify the BOM while recording manufacturing transaction.

d in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name fie

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

nished goods.
m Multi Component screen

Name of BOM field

nd Quantity details as shown

an create multiple BOM with different component list for the stock items.

ultiple Bill of Materials

BOM are created for the finished goods.

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured.

ducts or Scrap may be produced.

nputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

ents as consumption, By-Product/Co-Product/ Scrap.

e Unit of Measurement in Unit field.

goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen.

onents (BOM) screen a new column Type of Item will be displayed.

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

of finished goods

umed for the production of finished goods.

of finished goods

facture of finished goods.

nished goods or the Co- Products/ By-Products /scrap manufactured.

ed to determine the cost of production of Co-products/By-Products/Scrap .

Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.
t) . Bagasse & Molasses are identified as By-Products .

the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock it

Multi Component screen. If required you can create the second BOM for the stock Item

gle/Multiple BOM created with Component Type

with one more option Not Applicable .

BOM are created application displays the BOM list for selection

nents (Consumption) side

cts/By-Products/Scrap side

nt Type defined in BOM.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in BoM.
 OM multiplied by the Quantity of finished goods manufactured.

ced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in

in the BOM multiplied by the Quantity of finished goods manufactured.

Products or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-produc

OM to another BOM.

Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tu

ed goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen
 w Copy BoM Details screen

which the components to be copied. Here ABC company is copying the components from Standard .
factured by using the components identified in the component list.

fine the Unit of Manufacture and Quantity of inputs (components).

2: Configure .

Materials)? to Yes.
re finished goods.

e Unit of Measurement in Unit field

ods enable this option to Yes

configuration option Allow Component list details (Bill of Material) ,option will display in item master only on entering/ specifying the unit o
 Item Components (BOM) screen

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

ufactured by using the components identified in the component list.

ms from where the items will be used for manufacture.

abled in F11: Features (Inventory Features)

nished goods.

to manufacturer finished goods is 1 each of 5 different inputs.

cturing transactions can be accounted through a Stock Journal.

g the option Use as a Manufacturing Journal to Yes . Or

turing Journal to Yes.

ufacturing Journal , a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

with one more option Not Applicable .

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

finished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown
anufacture a specific finished goods based on the availability of goods or customer requirements.

Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the m

stock item based on the customer requirement

. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as

unit of measurement in Unit field

ods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

list Name - Customer A a nd press enter to view Stock Item Components (BOM) screen.

ame in Name of BOM field to identify the BOM while recording manufacturing transaction.

d in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name fie

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

nished goods.

m Multi Component screen

Name of BOM field

nd Quantity details as shown

an create multiple BOM with different component list for the stock items.
ultiple Bill of Materials

BOM are created for the finished goods.

d in Components (Consumption) side based on the BOM defaulted.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in the BoM.

OM multiplied by the Quantity of finished goods manufactured.

ducts or Scrap may be produced.

nputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

ents as consumption, By-Product/Co-Product/ Scrap.

e Unit of Measurement in Unit field.

goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen.
onents (BOM) screen a new column Type of Item will be displayed.

) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

components are defined.

factured by using the components identified in the component list.

ms from where the items will be used for manufacture.

of finished goods

umed for the production of finished goods.

of finished goods

facture of finished goods.

nished goods or the Co- Products/ By-Products /scrap manufactured.

ed to determine the cost of production of Co-products/By-Products/Scrap .

Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.

t) . Bagasse & Molasses are identified as By-Products .

the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock it

Multi Component screen. If required you can create the second BOM for the stock Item

gle/Multiple BOM created with Component Type

with one more option Not Applicable .

BOM are created application displays the BOM list for selection
nents (Consumption) side

cts/By-Products/Scrap side

nt Type defined in BOM.

ed in F11: Features (Inventory Features)

nished goods will be displayed automatically based on the components defined in BoM.

OM multiplied by the Quantity of finished goods manufactured.

ced during manufacture of finished goods will be displayed automatically based on the components defined & Component Type defined in

in the BOM multiplied by the Quantity of finished goods manufactured.

Products or scrap while creating BOM will be defaulted. The % of Cost will be considered to determine the cost of production of Co-produc
 OM to another BOM.

Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tu

ed goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

w Copy BoM Details screen

which the components to be copied. Here ABC company is copying the components from Standard .
factured by using the components identified in the component list.

fine the Unit of Manufacture and Quantity of inputs (components).

 Type
manufacturing/ assembling of finished Goods. Once, the Bill of materials is created, you can use Manufacturing Journal and specify the qu

g , as required.

e able to record Manufacturing Journal.

urnal to Yes .

all stock journal vouchers will be treated as Manufacturing journals.

ck of the item automatically. This process of listing the items that make up another item is made possible in Tally by enabling the Bill of Ma
on entering/ specifying the unit of measure in the Units field.
uring Journal.
displayed as shown

te BOM can be selected in the manufacturing Voucher.

s 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.
ve the cursor to BOM Name field.
nsumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap se
ed & Component Type defined in BOM
cost of production of Co-products/By-Products/Scrap .

with specific brand of Picture Tube - Picture Tube LG . Except Picture Tube, the components used to manufacture Television will be same as
on entering/ specifying the unit of measure in the Units field.
uring Journal.

displayed as shown
te BOM can be selected in the manufacturing Voucher.

s 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.

ve the cursor to BOM Name field.

nsumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap se
ed & Component Type defined in BOM

cost of production of Co-products/By-Products/Scrap .

with specific brand of Picture Tube - Picture Tube LG . Except Picture Tube, the components used to manufacture Television will be same as
on entering/ specifying the unit of measure in the Units field.
uring Journal.
displayed as shown

te BOM can be selected in the manufacturing Voucher.

s 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.
ve the cursor to BOM Name field.
nsumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap se
ed & Component Type defined in BOM

cost of production of Co-products/By-Products/Scrap .

with specific brand of Picture Tube - Picture Tube LG . Except Picture Tube, the components used to manufacture Television will be same as
on entering/ specifying the unit of measure in the Units field.
uring Journal.
displayed as shown

te BOM can be selected in the manufacturing Voucher.

s 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.

ve the cursor to BOM Name field.

nsumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap se
ed & Component Type defined in BOM

cost of production of Co-products/By-Products/Scrap .

with specific brand of Picture Tube - Picture Tube LG . Except Picture Tube, the components used to manufacture Television will be same as
on entering/ specifying the unit of measure in the Units field.
uring Journal.

displayed as shown
te BOM can be selected in the manufacturing Voucher.

s 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.

ve the cursor to BOM Name field.

nsumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap se
ed & Component Type defined in BOM

cost of production of Co-products/By-Products/Scrap .

with specific brand of Picture Tube - Picture Tube LG . Except Picture Tube, the components used to manufacture Television will be same as
turing Journal and specify the quantity of finished goods that are to be manufactured.
n Tally by enabling the Bill of Materials Facility.
her customers.
o-Products/By-Products/Scrap section
acture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Custo
her customers.
o-Products/By-Products/Scrap section
acture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Custo
her customers.
o-Products/By-Products/Scrap section
acture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Custo
her customers.
o-Products/By-Products/Scrap section
acture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Custo
her customers.
o-Products/By-Products/Scrap section
acture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Custo
nents of standard BOM to Customer B.
nents of standard BOM to Customer B.
nents of standard BOM to Customer B.
nents of standard BOM to Customer B.
nents of standard BOM to Customer B.
Batches and Expiry Dates
Batch details are used to identify the movement of the inventory in batches or lots. Although this is a requirement primarily of

Batches/Lots are also often used to monitor the date of manufacture , date of receipt or the expiry date .

To know more, click the links below:

● Activating Batch-Wise Details

● Manufacturing date & Expiry date for Batches

Activating Batch-Wise Details

You can activate batch-wise details in Tally.ERP 9.

1. Enable the options Maintain batch-wise details? and Set expiry dates for batches in F11: Inventory Features .

2. Enable the following options related to batches in the Stock Item Master to Yes .

o Maintain in Batches

o Track date of manufacture

o Use Expiry Dates

Using Expired Batches

You need to enable the option Allow use of expired batches for all stock items? to record transactions which involve expired b

Setting this option to Yes will allow you to use expired batches when:

● You need to return expired goods to suppliers.

● You sell expired batches to customers.

Note: This option is set to Yes , by default. If you select an expired stock item without enabling this option, an error message is
To use expired batches in transactions

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > F12: Configure > F12: Advanced .

2. Set the option Allow use of expired batches for all stock items? to Yes .

3. Press Ctrl+A to accept.

You can now use expired batches of stock items.

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his is a requirement primarily of the pharmaceutical industry, the same can be used by other industries who maintain or manufacture peris

ventory Features .

sactions which involve expired batches of stock items.

this option, an error message is displayed.

o maintain or manufacture perishable goods. Many organizations also purchase in lots in order to monitor the lots purchased individually.
the lots purchased individually. Hence, Tally.ERP 9 has used the term Batch/Lot.