Inventory Vouchers or what I call manufacturing Vouchers in Tally are often seen as something very difficult by many people.
But let me tell you that it is not at all difficult.
In fact it is very much easy that after knowing it you will be surprised how easy it was.
It is as easy as basic accounting entries in tally.
Inventory Vouchers in Tally – Manufacturing Entry
If you are a manufacturing concern or business which requires manufacturing to be done, then this tally tutorial is surely for you.
Inventory vouchers are specifically created for manufacturing businesses which are involved in manufacturing of raw materials and ultimately the production of finished goods.
I have explained the entire process but with a simple, sweet and small example.
Though the example is small but applies to each and every manufacturing process.
Creating Stock Items for the Manufacturing Process
Wait! Before directly jumping on to the video, let me tell you that I have already created stock items in tally.
Now you must be thinking that what the hell are stock items? Right?
Well, in simple words they are stocks which are used as raw materials and which will be produced as finished goods.
Basically, whatever the stock that will be used and whatever the products that will be produced are created as stock items in Tally.
For example, if you want to manufacture currency notes, you would require paper, ink, water and the finished goods will be the currency notes.
Therefore the stock items will be for paper, ink, water and the currency notes.
Side note – You and I cannot produce currency notes in reality. This is just an example. 🙂
Example of Manufacturing Entry in Tally with Inventory Vouchers
I want to make bread.
For that I will need Raw Materials. At the end the Finished Goods will be Bread.
So, here is a list of raw materials.
- Raw Materials – Flour, Water, Spices. These are the items that will be processed and at the end bread will be produced.
- Finished Goods – Bread.
For simplicity and better understanding, I have only taken 3 items for raw materials.
Also I have NOT included any kind of expenses for simple explanation.
I know that there are manufacturing expenses like labor, processing etc and you can add them if you want.
Let us look at it step by step.
Process and Understanding Inventory Vouchers in Tally
From Gateway of Tally, go to Inventory Vouchers.
After pressing the button of inventory vouchers you will see the Inventory Voucher Creation screen in Tally.
It looks like in the image below.
For manufacturing entry or transfer of materials from one godown to another gowdown, you can use stock journal in tally.
You can see it in the image above in the top left corner in pink colour.
The title of the screen says Transfer of Materials.
This simply means you are going to transfer materials from one department to another department.
It can be manufacturing department to production department.
On the LEFT side, there is Source (Consumption) window.
On this side you have to enter Raw Materials which is required to produce the Finished Goods.
Therefore the name of the window is Source or Consumption because it consumes the materials or goods and it gets produced in the next half of the window.
On the RIGHT side, there is Destination (Production) window.
This side is where you have to enter what finished goods actually are produced in your factory or department.
The name of this window is Destination or Production and thus states that a particular unit or product is produced in this department.
Creating Inventory Vouchers in Tally – Stock Journal
Now let us look step by step on how to create inventory vouchers from what you have understood above.
I am assuming you are currently at the Inventory Voucher Creation screen (Pink coloured screen) which is in the picture above.
If you are not at that screen, you can reach to that screen from following the steps which we have discussed above.
Now, from that screen we will enter the raw materials and finished goods about which we have talked in the example.
In the above example, bread was produced as a finished product and the raw materials included flour, water and spices.
For the sake of simplicity, I have taken this kind of simple example. In the real world there can be more raw materials and more than one finished product.
Coming back to the example, we will enter raw materials first in the left window and their respective rates and finished product in the right window along with its rate.
Look at the picture below for clear understanding.
I have entered following items in at the following rates.
Raw Materials (Left hand side window):
Flour – 50 Kg at ₹40 per Kg = ₹2,000
Water – 5 Liters at ₹15 per Liter = ₹75
Spices – 2 Kg at ₹100 per Kg = ₹200
Finished Product (Right hand side window):
Bread – 60 Kg at ₹50 per Kg = ₹3,000
After entering all the above items, you have to just press enter and your entry will be completed.
Now if you see Stock Summary from Gateway of Tally, you can see both the bread produced as well as the quantities of flour, spices and water.
Here is the picture of what you can see in Stock Summary.
You can clearly see the quantity as well as the value of the Bread.
Apart from that you can see the quantities of raw materials which are still left and they are called closing stock in tally.
In the picture, it is showing quantities of raw materials in negative because I have already used them in production of bread while I did not had any quantity in stock.
For this example, I did not add any opening balance to the raw materials and therefore it is showing negative balance.
But, you do not need to worry as it will not show negative balance once you enter the opening balance or the purchase entry in tally if you are purchasing raw materials from some one else.
Inventory Vouchers in Tally + Manufacturing Entry – Video
Other Inventory Vouchers in Tally for Voucher Entry
We have seen one of the most important inventory vouchers in tally which is stock journal in tally.
Now, we are going to have a look at other inventory vouchers in tally which are:
Rejections In Voucher in Tally
As the name suggests, you can use the rejections in voucher to record the products that are rejected and returned to you by the customer.
For example, you sold 100 t-shirts to a customer but she returned 10 of them back because they were defective.
This is different from a credit note in tally because credit note is absolute returns while for rejections in, you have supply new products in place of defective products.
Rejections In does not mean sales return. It is just the return of defective products for which you have to supply new products.
Rejections Out Voucher in Tally
Rejections Out voucher is exactly opposite of rejections in voucher.
When you have purchased something but the products are defective, you can create a rejections out voucher in tally.
This denotes that you have returned the defective products and are waiting for the replaced products to come.
Again, this is totally different from debit/credit note voucher in tally. Debit or Credit note vouchers are accounting vouchers in tally.
Delivery Note Voucher in Tally
Whenever you deliver goods or products to your customer, a delivery note is used in tally to track that.
Generally, a delivery note is used in combination with a sales order or a purchase order in tally so we can track the order as well as delivery of the goods.
You can also use a delivery note voucher without an order but it has to be connected with a sales voucher in tally otherwise double counting of the stock items will happen in tally.
Receipt Note Voucher in Tally
This is used when you receive the goods that either you have ordered or purchased.
As the name suggests, when you receive the goods, you create a receipt note voucher in tally and hand it over to the person who delivered you the goods.
This inventory voucher can also be used as an internal document in the company to note the receipt of the goods.
Receipt notes are generally used by companies who have a separate godown, a production facility or a warehouse to store the goods.
Physical Stock Voucher
When you verify the stock at the end of the week or a month or a year, and you find out that the actual stock for some reason is more or less than what it is in tally.
By using physical stock voucher in tally, you can easily enter the stock that you have physically verified by yourself.
After you have entered the physical stock voucher in tally, your stock summary will reflect the quantity of the physical stock voucher instead of what was earlier in tally.
This is the beauty of the physical stock voucher but you cannot change the amount of the stock. You can only change the quantity.
Material Out Voucher
Material out voucher is generally used along with the job order processing in tally. The entire process works out like this.
You give material to a person for doing the job. After completing the job, the person will return you the finished goods.
In this entire process, material in and out vouchers along with job order processing is used in tally.
But, even without job order processing, material out voucher can be used in tally to transfer the goods to another branch, consignment agent or even to your other business locations.
Material In Voucher in Tally
Similar to material out voucher, you can use material in voucher to record the material that you have sent for the job order processing or any other purposes.
Material In voucher comes under the inventory vouchers in tally and is often used for receiving the material from different godowns, branches, consignment agents etc.
Material In voucher is the final voucher in the process of sending the materials and then finally receiving them after being processed.
This voucher can be used for transfer of raw materials as well as the finished goods.
Stock Query Voucher in Tally
As the name suggests, with the help of the stock query voucher, you can easily check out the entire details of any stock item.
You can check the following details of a stock item with the help of stock query in tally.
- All the purchases details
- All the sales details
- Godown and batch details
- Items of same category
- Closing Balance
- Cost Price
- Standard Selling Price
All these details can be viewed on a single page.
This is one of the best inventory vouchers or inventory reports in tally and this is used by very less people as very few people know about it.
At the End…
I am sure you have learnt every single detail about creating inventory vouchers in Tally.
This method can also be used even if you are only assembling goods and not manufacturing.
The reason behind it is very simple. Although it is assembly the process is same as manufacturing.
In manufacturing, raw materials are processed and a finished product is produced while in assembling of goods a product is created by putting some goods together.
In Tally, this is the correct way to create manufacturing entries with the help of inventory vouchers.
Now, you exactly know how you can create manufacturing entries in Tally.
If you have any doubts, comment below and I will be more than happy to help you.