Stock Items and Stock Groups in Tally are very much important for maintaining stocks in Tally.
It is very efficient and effective way to calculate all major aspects of stocks in any kind of business.
Tally helps with some of the awesome features about stocks like:
- Quantity
- Rate
- Value
- Consumption
- Gross Profit
- Gross Profit (%)
- Opening Balance
- Closing Balance
- Stock Valuation methods such as FIFO, LIFO, Average Price and many more
These details are very helpful for a business to make good decisions.
If you want to master Tally, creating stock items and stock groups is one of the important functions of Tally.
As the name suggests, a stock item is a single item of your stock.
For example, if you have an electronics business, following can be your stock items:
- Mobile
- Earphones
- Mobile Covers
- Screen Guards
- Micro SD Cards
- Chargers
- Charging Cables
And many more things which you have in stock in your shop.
So, let’s say, you have some of the below things in your shop right now.
- 25 Mobiles
- 50 Earphones
- 55 Screen Guards
Then, it can be said that your stock consists of total (25+50+55) 130 numbers of items in stock.
If you have any other business, you can create simple stock items and manage your stock efficiently in Tally.
Now, let’s see you how you can create stock items in Tally.
In this example, I will be creating 3 different stock items listed above.
So, that would be
- 25 Mobiles
- 50 Earphones
- 55 Screen Guards
It is very much easy and simple to create all 3 of them in less than a minute if you know how to create them.
As we already have a balance of units, I will also add Opening Balance while creating the stock items.
Take a look at the following pictures and create a stock item exactly the same way with all the same configurations.
From Gateway of Tally,
- Go to Inventory Info.
- Then, go to Stock Items
- Then, select Create under Single Stock Item
Now, see the picture below and create the stock item for 25 Mobiles for ₹15,000 per unit.

Likewise, create stock items for 50 Earphones for ₹400 per unit and 55 Screen Guards for ₹200 per unit as shown in the picture.


Did you see noticed the Units option while creating Stock Items?
That is the Units of Measure which I have discussed at the end of this post.
This is how you can create Stock Items and Stock Groups you will learn in a few minutes in Tally.
It is very easy and simple to do so.
Now let’s create Stock Groups.
Creating Stock Groups in Tally
Stock Groups in Tally further divides stocks in different groups for better understanding of stocks.
This will give us a much better look and understanding of stock items and stock groups in Tally.
Even in the future if we look at the stock items and stock groups in Tally, we will know the differentiation easily.
Let’s take the current example.
We have created 3 different Stock Items which are:
- Mobile
- Earphone
- Screen Guard
So, if we want to group the above stock items, they will be like this.
Mobile will come under a Group called Mobiles.
Earphones and Screen Guards will come under another Group called Accessories.
By doing it this way, it will be easy for anyone to search the item easily.
You will also have a good understanding of different types of stocks you have on the basis of Grouping.
Currently, we have all the items under same Stock group called primary.
Primary is pre-defined Stock Group in Tally.
Now, what we will do is create 2 groups which are Mobiles and Accessories.
Then, we will alter the stock items and assign them proper groups instead of just primary.
Let’s do this.
Creating Stock Groups in Tally
From Gateway of Tally,
- Go to Inventory Info.
- Then, go to Stock Groups
- Then, select Create under Single Stock Group
Then create 2 stock groups as shown in the pictures below.


Now, as we have created two different stock groups, you have to do one last thing.
And that is to alter the stock items and assign them the groups so we can form combination of stock items and stock groups in Tally.
So, again:
From Gateway of Tally,
- Go to Inventory Info.
- Then, go to Stock Items
- Then, select Alter under Single Stock Item
Then select Mobile once again from the list.
This time going through the screen, select Mobiles for Under option as shown in the picture below.

In the same way, alter Earphones and Screen Guards and in them select Accessories for the option Under.

We have grouped the stock items and now it is very easy to find different stock items with the help of groups.
This is the best way to use Stock Items and Stock Groups in Tally.
The reason, I have made you alter the stock items for grouping because I want you to learn how to alter a stock item also.
So, that will be a bonus learning for you.
Creating Units of Measure in Tally
Almost every business has stocks and stocks have units.
Let me explain it to you in a simple way.
For example, you are in a business of electronics and you sell mobiles, accessories, gadgets etc.
Your stock items would be mobiles, accessories, gadgets etc.
And your unit of measure will be numbers.
You say, I have a stock of 25 mobiles and 25 is a number.
If you are in dairy business which sells milk and other milk products.
In this case, you will say I have a stock of 30 liters of milk today and the unit of measure is liter.
In Tally, you can create different units of measure with whatever name you want.
So, if your business is somewhat different, then don’t worry at all. You can do all of that in Tally.
To create a unit of measure in Tally, you need to follow the steps, I’m telling you right now.
First of all, from Gateway of Tally,
- Go to Inventory Info.
- Then, go to Units of Measure
- Then, select Create
Create Unit of Measure (No – Numbers) as shown in the picture below.

Want to know what Number of decimal places mean, watch the video. But, put it to 2.
This unit of measure will be used while creating stock items.
In short we attach Stock Groups and Stock Items and have units for the stocks in Tally vi Units of Measure in Tally.
Stock Items and Stock Groups in Tally
A Quick Exercise for you
From Gateway of Tally, go to Stock Summary and comment down below what you see.
This was the creation part and check out this post to know how to use Stock Items and Stock Groups in Tally.
ritish shah you are the best
Thank you so much Rajkumari!
tds entry i cant understand sir pls tell for tds entry
Hi, Prabu!
TDS entry is simply a tax deduction entry.
Hi..Rishit shan
I want know unit vice sale and its profit can u help me..
Hi, Abid!
It is easy.
Once you create stock items and pass purchase and sales entry, you can see unit wise sale and profit.
You just have to go to Stock Summary from Gateway of Tally.
Then press F7 and you will see what you wanted.
may i just thought now on tally inventory info. in there entry for purchase Que.: manufacturing journals all Que.: and multi- currency all Que.: active actual Biled Qty. Que.: discount Que.:: expiry date Que.: all Que gives me for practice me
Hi, Stuti!
I will issue practice notes about tally for everything soon.
They are in my timeline.
Thanks for the suggestions.
plz introduce the concept of VAT
There is a concept of VAT.
You have to buy the DVD for that.
Here is the link – http://www.tallyschool.com/course
Nice video sir… Got few doubts
1) What is difference between stock groups & stock categories ?
2) While creating group you have set can quantities be added field to NO ? not clear
3) What is difference between single group & multiple group ?
Kindly provide your contact details
Hi, Suresh!
There is not much difference between stock groups and stock categories.
For example, you can set Mobiles, Computers as groups.
Further you can set iPhone, Samsung etc as categories.
Quantities of items to be added means number of stock items added in that particular group.
Difference between single group and multiple groups is same as single ledger and multiple ledgers.
They just help you to create more groups fast same as ledgers.
Rishit Sir,
Thank u so much for sending my precious tally lessons everyday .. Even now i am feeling master of tally after studying ur tally lessons.
Thank you so much Raj!
This is what I want.
I want you all become experts at Tally.
Rishit. Good work, God will bless you and make your dreams realizable. I am beginning to fall in love with Tally especially as it will help me in my job as a stores officer. However, i will be interested in the full package that will make me a master in Tally as you. Do you have any comprehensive book on it? Great work.
Hi, Godwin!
Thank you so much for your good words.
You can buy the Tally DVD Course and you will be master just like me after some practice.
Here is the link to buy it – http://www.tallyschool.com/tally-premium-course/
hi sir , First of all thank you for your easiest way of learning in tally.L hope you are correct person to solve the problem and i have some mistake on accounting feature so, not displayed in inventory and stock i don’t know what i do because i’m learn tally in few days only
so pls rply the solution of this problem
Hi, Adhanya!
Set Yes to the Inventory option in Accounting Features and you will see it.
Thanks for the appreciation.
Whether there is any options in tally for creating Sub groups or sub category for inventory, because my inventories are having 5 layers. Please reply
Hi, Satheesh!
Yes, there is an option to create groups as well as sub groups and categories too.
Very easy to understand. Really a great video related to stocks. My suggestion is please solve a big problem including inventories so that I will be very helpful
Hi, Melwin!
I have explained including inventory which is called stock items.
Are you trying to say anything else which I am unable to understand?
Please comment it, if it is so.
Hi, Rishit
I read your article regarding Inventory. I’m working with a papermill. We manufacture industrial grade paper.Now the problem I’m facing is we have 4 /5 quality like Testliner,fluting, coreboard each quality have different Grammage and sizes like we produce Testliner 125 gsm 1050 mm,1250mm,1100mm
fluting also same size and grammage.
We need no. of reels and quantity produce in each quality grammage size. Please help to know about the entry .
Hi, Soumyajit!
There are different ways in which you can categorize your stock items.
You can make a group called Testliner. Then in that group you can create a sub group for 125gsm. Then you can create stock items for 1050 mm, 1250mm and so on under that group.
Rishit,
Thanks for this great lesson, I have similar problem with Soumyajit, pls after when creating group items like testliner under what is it going to be, i.e Primary or Reel.
thanks
Hi, Idowu!
That is the question of two units.
Put quantity as the units and number of reels in the narration or description.
For example, you can set 5 125gsm units of 1050mm testliner produced. And then calculate reels on your own and put it in the narration or description.
Sir
How to create site expenses
Our company is a infra company. we are dealing with different sites
How to include site expenses and stock
Hi, Suresh!
Create a ledger named Site Expenses under the head Direct Expenses.
For creating stock see this post –
Hi rishit
Thank u for the video update day to day. I have easily learn the tally much. And I am feeling like master of tally. Thank u very much
Hi, Prateeksha!
You are very welcome.
I am glad you learned so much that you feel like a Master of Tally.
I am here to create many such masters.
I need in stock item like mobile phone then what sizes of mobile phone and which grades it is like samsung,vivo,micromax
Hi, Laxmi!
You can create Stock Groups on the basis of companies such as Samsung, Vivo and Micromax.
Then, you can create Stock Items like Samsung Galaxy S8, Samsung Galaxy S8 Edge and so on.
This will solve your problem.
Hi Rishit,
Appreciate your efforts on helping out people with understanding and learning tally. Your Posts and Videos really HELP 🙂
One quick question for you
I Have created a Stock Group and few Stock items under that group. Now my pricing is stock item-wise. However, I could locate stock item but cannot display stock group name in invoice printing. Can you help how can I achieve that?
Thanks,
-Shantilal
Hi, Shantilalji!
I am sorry but printing group invoice would not be possible on the invoice.
Hi Rishit,
I have just started with tally and your explanations are very helpful.
I have a few doubts:
Can we delete a stock item created?
I cant change the units in a stock item i had created earlier. Is it not possible to alter a unit in a stock item once entered?
Thank you for your time and consideration.
Hi, Femis!
Yes, you can delete a stock item you created but for that you also must delete all entries in which the stock item you wish to delete is used.
No, it will not be possible to change the units once a stock item is used in entries.
Sir I want create stock list of my business in tally I.e sarees and suits and I have many sarees and suits of same price and different price so how can I do it.
Hi, Harsh!
There must be something that is different in each saree and suit.
For example – Blue Saree, Pink Saree or Suit 001, Suit 002.
Create stock items as above and you would have all the stock items entered in Tally.
Here are the links to do that.
https://www.tallyschool.com/stock-items-stock-groups-units-of-measure-in-tally/
https://www.tallyschool.com/using-stock-items-and-stock-groups-in-tally/“
Hello sir I’m jitu borah work at tally erp 9 6.0.2 version. In business shop. Im creating a stock item in my company but wrongly entry this unit of measure. I change this unit of measure but not do it. How can i do it.please solution this process.
I watched your explanation stock items, stock groups under stand but why S comes sometime as first and sometime last. Ex:Mobiles,Earphones, and S. What S means? Very much appreciate your precise explanation plz.
Hi, Ramesh!
S is just another stock item which I had created to learn some functions and its effects in Tally.
There is nothing to worry about it.
Dear Sir, could you please mail me the process for getting a DVD of Tally.ERP 9 or any link available.? Also your mobile number too. Think that it’s an honourable request…..
Hi, Yahovardan!
I have not yet released the updated DVD yet and I’ll email you if you have registered for free course on Tally.
It is a simple request. No worries.
Stock Items,Stock Groups,Units of Measure -How can we do Multiple stock items,Multiple Stock Groups Pls explaim
Hi, Sowrirajan!
While creating stock items, select Create under Multiple Stock Items. You will be able to create multiple stock items.
TOO MUCH HELPFUL
Thank you so much Vishnu! I am really happy! 🙂
MY COMPANY IS A BUILDING MAINTENANCE COMPANY AND ALSO WE DOING LPO WORKS FOR OUR BUILDINGS. We are purchasing some of the materials from dubai as stock and we use these materials for using for the maintenance in our buidings .we have 29 building maintenacne in abudhabi .so how can i show in tally these things like which flats or villa these stock items are expended and also these expenses need to show in as per the project name .can u help me sir.
Hi, Vishnu!
This is a very complex scenario.
I am assuming you are in Dubai or your accounts are being made for Dubai.
When you expend your stock items, you can specify the name of the seller as different flats or villas.
This will automatically show accounts as per the projects name.
PLZ Help with one example sir.
Hi, Vishnu!
For example, you have 1 stock item which you used one flat and one villa.
The expenses ledger will be Abu Dhabi Flat No. 1 and stock item name we assume to be windows.
So when pass the entry, you will know total expenses of Abu Dhabi Flat No. 1.
Similarly, you can also know the number of items used in Abu Dhabi Flat No. 1, when you open that ledger and see it.
Good tutorials are awesome.
Thank you Vinay Babu! 🙂
Sir , thanks for this online course. i wants to request you that you should give us exercise for practice on the topic that you learn us daily.
Hi, Mandeep!
You are indeed right! I will be posting a few exercises in the coming new year.
Very educative
Thank you David! 🙂
Hello sir,
i tried to create sock items for the company and it shows in the balance sheet as closing stock .I need one more advice from you that i want to use soem of these materials for our building maintenance day by day .For eg if i have stock of shower mixer qty : 100 , rate per pcs 20 total 2000 then ,from this i took 5 quantity for one of our building maintenance .How i will show this in tally .please advice on it .In which voucher i can show these transfers.
Hi, Vishnu!
Whatever stock you have will be your closing stock until you sell it or use it. That’s basic accounting.
You can read my post about closing stock in which I have explained this in detail.
https://www.tallyschool.com/closing-stock-entry-in-tally/
For what you are saying, you can simply pass a journal entry.
Building Maintenance Dr
To Shower Stock
Ritesh you r the best
Thank you for your compliment, Basant!
But my name is Rishit. 🙂
after crossing cheecking the stock summary we can find the list of stocks that we have entered after reading your instruction
Yes, Rinzin!
All the stock items appear in Stock Summary.
HI Rishit your tally class have helped me a lot..i learn a lot but your sweet phrase says(if you want to master the tally creating stock items and group is one of the important function) i really loved it.and i did it by regrouping and all but i am little confused when we have to group stock items and stock items
Hi, Rinzin!
Thank you for your kind words. 🙂
What are you confused about? Can you elaborate a little bit more?
hi Ritish i have already create stock items in my tally like cgi sheet .30mm .4omm .50mm .63mm with ft units now i wanted to book this stock items in groups i tried like what you said but i still have problem in altering the stock item to group stock please do suggest me
Hi, Rinzin!
You can create groups in Tally and then assign the stock items to a particular group.
That’s it.
Hello Rishit Bhai,
I want to know is it possible to displace – Qty (Pcs) – Gross Weight – Net Weight – Column In stock items as well as in invoice? Is there any way out for this?
Hi, Jain!
You can have Quantity and either Gross Weight or Net Weight but not both.
You have use Compound Units in Tally for that.
Hello Rashit,
Thanks for your effort. i have seen stock Groups, but only with stock items in side them.
Hi, Simon!
Empty stock groups would be of no use. Therefore there are stock items in stock groups.
Still, if you want you can create Stock Groups in Tally which are absolutely empty. 😉
How to link Stock Group with Accounts Group in Tally? e.g. Raw Material (Stock Group) is to be group under Inventory (Accounts Group).
Hi, Praveen!
You do not need to link Stock with Accounts.
Just set the option of Integrate Accounts with Inventory option to Yes in Accounting Features.
All the inventory will now show up in the Balance Sheet and Profit and Loss Account in Tally.
Hey Rishit, first of all thanks a ton for helping all of us out.
Kindly help me out with a problem that i am struck for too long with my client. Company is a trading concern.we have created all stock items individually as per our order BUT
They purchases some products in KITS and sells them in KITS and also individual wise (only selling a part of kit). so i am unable to get accurate stock.There are many products on our system showing negative stock.How to link kits to individual products so that when we buy or sell in Kits or individually, stock reflects accordingly? Is it possible in tally? Kindly guide me to a solution
Hi, Rupa!
It is possible to have a solution for your problem.
You need to create a stock item called Kits and whenever you sell them in kits, you need to create a stock journal entry for that.
In that entry, transfer the stock item that is in the kit.
By this way, you can create kits whenever you want to buy or sell them and when individual items are being bought or sold, you can use indiviudal items as well.
Rishit, can you help me in creating account heads for a pharmaceutical company. I am using Tally ERP9.
Thanks
Hi, Francis!
Accounting heads are generally same for any business.
If you are having some specific questions, you can check out this post – https://www.tallyschool.com/list-of-ledger-accounts-in-tally/
Dear Rishit Sir
I create stock items in multiple stock items, how can I delete these items. Please help me sir.
Hi, Myo!
Go to the alter option in stock items and press ALT+D to delete them.
If you have used the stock item anywhere in tally, you will not be able to delete it unless you delete that entry where the stock item is created.
Hi Rishit,
First of all thanks for all the stuff you provided to us. It really helped me alot. I have one doubt that while starting a new company or business when we were creating stock item n all , is it necessary to show the items in the opening balance. As the company has started it’s business newly, so it must be purchasing first. Not making entry in the opening balance will make any difference?
No, it will not make any difference.
If you purchase first, then there is no need for opening balance.
Dear Rishit, Thank you for your Educational video.
I have a product with different serial numbers for eg. Samsung S9 Mobile 10 nos but all with different serial numbers.
How do i create stock with these serial numbers and recall them when doing a sale?
Hi, Ranjan!
Currently what you are saying is not possible in Tally.
I am sorry for that.
Sir i love ur experience in tally. Sir stuck in a small issue. Issue is when i use purchase voucher to fill the items than later Quantity, Rate and Amount. When i fill the Quantity e.g 200pcs. I can fill only amt. It should be shown in nos, strips, pieces etc and how to fill the Rate amount.
Hi, Aashaq!
That is because, while creating the quantity, you did not insert units of measure i.e. no, strips, pcs and so on.
Alter the stock item and enter the units.
Then you will see them.
Rate amount is per pcs or nos. You can enter it and the total amount gets calculated.
sir, when we create stock accounts….after ledger creation or before ledger creation..or when? plz help me
Hi, Agesha!
We can create stock accounts or stock items whenever we require it.
We can create it before the ledgers but if we get to know the requirement of stock item while passing the entry, we can create a stock item at the time of doing an entry also.