How to Use Stock Items and Stock Groups in Tally

Using Stock Items and Stock Groups in Tally

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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35 thoughts on “How to Use Stock Items and Stock Groups in Tally

  1. Rutuja says:

    Hello,
    Ur Tally school is realy helful…
    i have a doubt dat… while selling a product when we enter a name of product & quantity, then y the amt will not cum atomaticly on the screen.. which we have entered in stock while creating item..
    or is there any option for dat while seling the item atomaticaly rate should cum.

    • Rishit Shah says:

      Hi, Zahid!

      It is very simple to add overheads in Tally.
      You just have to create ledgers for the expenses under indirect expenses.

      Then when you pass a purchase entry you will be asked to enter the overheads at the end of the entry.

  2. Zahid Ali says:

    Hi Rishit Shah!

    Thanks for your reply!

    But my confusion is if that overheads is payable to some other company not to the same company to whom we purchased goods. Than what will be entry and impact of that entry on P&L. Can you show in video please ?

    Thanks a lot.

    • Rishit Shah says:

      Hi, Zahid!

      It does not matter whether you are paying to the same company or a different company as long as you are paying in cash.
      The impact of expenses will be automatically shown in the profit and loss statement.

  3. TENZIN DODHON says:

    HI BRO.IN MY TALLY THE DOMESTIC SALES IS NOT SHOWING
    UNDER THE SLES LEDGER EVEN THOUGH I HAVE CREATED A DOMESTIC SALES A/C

  4. Payal Mittal says:

    Hiii RISHIT..
    I want toask u that when i use stock item in sales voucher it shows an error that is accounting allocations not for mobile and earphones etc. and when i use stock item in purchase voucher it shows an error voucher totals do not match. what does it mean??

    • Rishit Shah says:

      Hi, Payal!

      The error comes because you are entering different amounts in bank allocation screen and the ledger if you are using bank account for passing the entry.
      Check the debit and credit sides of the ledger and both the amounts should match.

      If the error further comes up, email me the screen shot.

  5. Radhika says:

    hello Rishit

    I am not able to enter domestic sales/purchases in sales ledger/purchase ledger option nor there is any list to select that.
    I have already created domestic sales under sales a/c and domestic purchases a/c under purchases a/c but still it is not showing.
    Pleasr help me.

    • Rishit Shah says:

      Hi, Radhika!

      Please select Accounting Invoice instead of Item Invoice.
      It will show.

      And if you want to use Item Invoice, select Yes for Inventory Values are affected while creating the ledger.

  6. Laxman says:

    Hi Sir,
    In sale voucher Item invoice, can we change format of voucher.
    If i want to use as a bill copy. and bill of format i want as per my Preference.

    Please help.
    Laxman

    • Rishit Shah says:

      Hi, Laxman!

      We cannot change the format of the voucher.
      We can change the details only.

      If you still want to change the format, contact a Tally Developer.
      He can do it for you.

  7. Jyothi Reddy says:

    Hiiii Rishi, I am jyothi reddy.
    Can you explain me how to create gst invoice with all requirements using Tally.

  8. nitesh kumar says:

    hiii risit ji

    first , thank you so much for help me in learning tally.

    how can i know advance feature in tally . i complete all 12 lessons in tally school.
    pls help me .

  9. Ujjawal says:

    Hello sir,

    I have created the ledger domestic sales under sales account but it does not appear in sales voucher only sales account appears.

    • Rishit Shah says:

      Hi, Ujjawal!

      If you are creating a Sales Voucher, you will have to enter Sundry Debtor in the Party A/c field.
      Then while passing the entry, in accounting details you have to enter Sales Account which you have created.

  10. Sowrirajan N says:

    Creating sales/purchase vouchers using stock items -Sales-Domestic sales,Purchase-Domestic purchase not pickup -I also choose item Invoice only Sales/purchase ledger not pickup-please clarify

    • Rishit Shah says:

      Hi, Sowrirajan!

      It is because first, you have to enter the Sundry Debtor’s or Creditor’s name in the Party A/c.
      Then while passing the entry, you need to select Sales or Purchase Account.

  11. N.SOWRIRAJAN says:

    Creating Sales/Purchase vouchers using stock items -I choose voucher type sales-Sundry debtor-AMIT- Sales Account-Domestic sales i am unable to choose- stock items also choose and got the sales amount Rs.56000/when i save voucher shows error-No Accounting information-Kingly clarify

  12. sanjay says:

    I want to maintain inventory in tally in GST of Same product in different rate, size and different product in different size. in group wise, category wise and item wise.
    pls guide me with exmpls.

    • Rishit Shah says:

      Hi, Sanjay!

      For same product in different rate, you have to create different products for that.

      For example, you can create a product named Bottle – 18%, Bottle – 28% and so on.
      Now, if the size is also different, that means it is a different product and therefore you have to create a new stock item for that.

      Then, you can easily group them and categorize them according your needs.

  13. ravi says:

    hello sir,

    I have one doubt that i have four sales persons and I allocate the stock as they required. Sales persons pay cash when the stock is sold. how con i enter the voucher after sales and and How con i get statements from our sales persons
    plz clarify me

    • Rishit Shah says:

      Hi, Ravi!

      I assume you want separate statements for each sales persons for the sales they make.
      For that, you have to buy an addon since there is no option of sales persons in Tally.

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