In the previous video, I’ve explained how you can create Stock Items, Stock Groups and Units of Measure in Tally.

Now, you are going to learn how to use Stock Items and Stock Groups actually in Tally.

Creating stock items and stock groups is a different thing and using them actually is a whole together a different process.

95% of the time stock items and stock groups in Tally are used for the following purposes:

  • Sales Voucher (Sales Invoice)
  • Purchase Voucher (Purchase Invoice)
  • Credit Note (Sales Return)
  • Debit Note (Purchase Return)

I have already explained how to create Sales and Purchase Vouchers as well as how to create Debit and Credit Notes in Tally.

If you do not know any of those, you can check those out first.

Because it will help you to understand this concept easily and with better quality.

I have also constantly said in the video to watch those videos first and then come here to understand this video.

The reason is because in this post, I have explained the use of Stock Items, but I haven’t got into the exact details of creating purchase and sales vouchers and also debit and credit notes.

 

In this post I am going to explain you to use stock items and stock groups in Tally with the help of Sales and Purchase Vouchers.

In simple words, I am going to create Sales and Purchase Vouchers but with items in it.

Previously, I had explained creating Sales and Purchase Vouchers but it was only Accounting Invoice i.e. without any items in the entry.

Here I will explain a sales entry, for example along with some items such as mobiles.

So you will learn creating a sales entry which is really done in the real world.

Firstly, as I said, I will be creating Sales Voucher.

Creating Sales Voucher using Stock Items in Tally

Creating Sales Entry in Tally is very much easy even if you know a little bit of Tally.

Let’s get into the creation of sales voucher right away. Here are the exact steps.

  • From Gateway of Tally, go to Accounting Vouchers.
  • Select Sales there in the right hand dark green bar or simply press F8 for the shortcut.
  • Then select Item Invoice, again from the right hand dark green bar or press ALT+I.
  • Now, we will start with the entry. In this example, I have selected Amit as debtor and Domestic Sales as Sales Account. It will look something like this in Tally.
Creating Sales Entry as Item Invoice in Tally

Creating Sales Entry as Item Invoice in Tally

  • We will now select what we want to sell and in our case it is Mobiles, Earphones and Screen Guards for this example. Look at it in the image below for how it looks like in Tally.
Creating Sales Entry as Item Invoice in Tally with Stock Items

Creating Sales Entry as Item Invoice in Tally with Stock Items

  • In total, we have sold the following things.
    • 2 Mobiles = ₹20,000 x 2 = ₹40,000
    • 10 Earphones = ₹600 x 10 = ₹6,000
    • 15 Screen Guards = ₹350 x 15 = ₹5,250
  • At the end you can enter the narration if you want and just press Enter to save the entry.
  • This is how the Sales Entry is done using Stock Items and Stock Groups in Tally.

Let’s now create a Purchase Entry for using Stock Items and Stock Groups as we have used in the Sales Entry.

Creating Purchase Voucher using Stock Items in Tally

In any business Purchases are as much necessary as Sales.

So without wasting any time, let us quickly start into creating a Purchase Voucher using Stock Items and Stock Groups in Tally.

Here is a step by step method.

  • From Gateway of Tally, go to Accounting Vouchers.
  • Select Purchase from the right hand side bar or simply press F9 which is the shortcut for selecting Purchases.
  • Again, make sure you have selected Item Invoice so you can enter the Stock Items easily while passing the entry.
  • In this entry I have selected Rohan as a Sundry Creditor and Domestic Purchases as the Purchase Account. Here is the picture of it in Tally.
Creating Purchase Entry as Item Invoice in Tally

Creating Purchase Entry as Item Invoice in Tally

  • If you notice, I have also included Supplier Invoice no. as 25. You can write it whatever your supplier has quoted on the invoice.
  • We will put in Tally what we have purchased and it would be for this example Mobiles and Earphones. Have a look at it in the picture below.
Creating Purchase Entry as Item Invoice with Stock Items in Tally

Creating Purchase Entry as Item Invoice with Stock Items in Tally

  • In total we have purchased the following Stock Items.
    • 5 Mobiles = ₹14,000 x 5 = ₹70,000
    • 20 Earphones = ₹600 x 20 = ₹12,000
  • At the end you can enter the narration for your convenience if you want and just press Enter to save the entry.
  • Isn’t the method easy for creating a Purchase entry using Stock Items and Stock Groups in Tally? Hell, YES! 🙂

This were the Purchase as well as Sales entries along stock items and stock groups.

In simple words these were the sales and purchase entries which includes the inventories.

What now I am going to explain is entirely different from the above but is almost same too.

Don’t get confused. It is easy and simple.

Okay, let me tell you. It is creating Credit Note using Stock Items and Stock Groups.

As we have sold certain items in our example to Amit, let us assume he will return some of the items that he purchased back to us.

We will pass that entry in the Credit Note in Tally.

Creating Credit Note using Stock Items in Tally

I have explained the use of Credit Note and what is the difference between Credit and Debit Note in another post.

Go through that post if you are confused between Debit and Credit Note.

Here I am going to create a Credit Note. Step by step instruction is as under.

  • From Gateway of Tally, go to Accounting Vouchers.
  • Select Credit Note from the right hand side bar or simply press CTRL+F8 for the shortcut.
  • Put in the date of original purchase if you want to and enter all the details as shown in the picture below.
Creating Credit Note having Stock Items in Tally

Creating Credit Note having Stock Items in Tally

  • In this example Amit has returned 3 Earphones and 5 Screen Guards as you can see in the picture.
  • The process of entering the items is same as you would have entered while creating sales or a purchase voucher.
  • The best thing is Tally will take the last rate entered for a Stock Item automatically so while creating a Credit Note, you will not have to always remember the item price.
  • At the end, as always, press Enter to save the entry and you are done.

This is how you can create a Credit Note with Stock Items and Stock Groups in Tally.

But this is not over yet.

What if we want to return some items to Rohan who is our creditor.

We have to create a Debit Note. If you guessed that, cheers! 🙂

Let us straight forward jump into the creation of a Debit Note using Stock Items and Stock Groups.

Creating Debit Note using Stock Items in Tally

Earlier, Amit who purchased from us returned some goods. Now, in this case, we are returning goods to Rohan and therefore we are creating a Debit Note.

Let us start with the exact steps.

  • From Gateway of Tally, go to Accounting Vouchers.
  • Select Debit Note from the right hand green side bar or simply press CTRL+F9 as a shortcut for selecting debit notes in Tally.
  • We will enter the details of returning goods and it will look like something in the picture below.
Creating Debit Note with Stock Items

Creating Debit Note with Stock Items

  • I have selected the Domestic Purchases as a Purchase Ledger since we have purchased using that ledger.
  • I have also entered the original invoice number and date.
  • In total, I have returned 1 Mobile and 2 Earphones.
  • Tally will automatically take the last value entered for the price of the items and I love that fact.
  • Lastly, as you know, press Enter and save your entry.

So, this was the Debit Note in which we have returned a mobile and 2 earphones.

I am sure you would have understood the post and what I am trying to explain to you.

Below is the video and I recommend you check it out to have clear and crisp understanding about using the stock items and stock groups in Tally.

Using Stock Items and Stock Groups in Tally

Comment below your doubts and I will be more than happy to help you.

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