Creation of Stock Items

1. Gateway of Tally > Create > type or select Stock Item > and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Item > and press Enter.
2. Name & alias: As in other masters, you can specify multiple aliases for the stock item.
3. Under: Select Primary or an existing Stock Group. If you have not created any Stock Group, you can create one in TallyPrime to assign to the stock item.
   As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter.
4. Units: Select the unit of measurement applicable for the stock item. If the unit is not listed, you can create the unit of measurement in TallyPrime to assign to the stock item.
   As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Units > press Enter.
   
   • All the UQCs declared by the government or GSTN are available in TallyPrime by default. You can select based on relevance to the product or commodity. Whenever there is a new UQC declared by GSTN that TallyPrime has not provided, or you are yet to upgrade, you can create a new UQC with the exact name and symbol as defined by GSTN. Altering the defined name or UQC is not possible. However, you can create a new UQC.
     1. Unit Creation > Unit Quantity Code (UQC) > select New UQC.
     2. Enter the UQC Name, and press Enter.

   • For every item in TallyPrime you can associate one or more units of measurement. There are no default Units available.  

     Simple Unit: A Simple unit consists of a single unit. For example, Meters (m), Kilogram (Kg), Numbers (Nos), and so on. You can use the Simple unit when you are dealing with an item that does not need more than one unit or where only one unit is needed for buying or selling.

     Alternate Unit: The Alternate unit is determined by the base unit, whether it is a Simple unit or a Compound unit. You can use an Alternate unit when there are multiple units used by the item and their conversion is flexible or dynamic during the transaction.

5. Statutory Details: Set the applicable Taxability option for the stock item under Statutory details, The option will depend on the option enabled in the F11 (Features) screen. Click here to see more.
6. Opening Balance: Specify the opening balance for the Stock Item as on the date of Beginning of Books.
   1. Quantity: Specify the stock item Quantity.
   2. Rate: Specify the stock item Rate.
   3. Value: TallyPrime automatically calculates the value by multiplying the Quantity and Rate. You can also edit the value, TallyPrime automatically refreshes the Rate field accordingly.
7. Accept the screen. As always, press Ctrl+A to save.
   

For the F12 configurations of Stock Item, click here.

Create Units for Stock Items

Depending on your business, you may be selling or buying stock items in different units. For example, you can use simple units like Meters, Centimeters, or Nos. If you sell items in bags and boxes of standard sizes – say 100 kg for a box, using TallyPrime, you can create all different units as per your needs.

Simple Unit

1. While creating a stock item, press Alt+C, to create a unit master on the fly.
   The Unit Creation (Secondary) screen opens.
2. Enter the details in the Unit Creation screen.
   1. Enter the Symbol. By default, the Type field will be selected as Simple.
   2. Enter the Formal name for the simple unit.
   3. Select the Unit Quantity Code (UQC) relevant to the stock item from the list provided.
      The list consists of the number of Unit Quantity Codes (UQC) available for your product or commodity as declared by the Government or GSTN.
   4. Specify the Number of decimal places required based on your business needs.
      
      

3. Press Y to accept the screen. As always, you can press Ctrl+A to create a Simple unit.

In a similar way you can create other Simple Units. In case you want to enable additional configurations for your units, press F12 (Configure) on the Unit Creation screen.

Alternative Units

To use Alternate units in a transaction, ensure they are enabled on the Stock Item master.  

1. While creating a stock item, enable Alternate unitsfor the stock item.
   1. Press F12 (Configure) and set Use Alternative Units to Yes.
   2. Press Ctrl+A to save the configuration and return to the Stock Item Creation screen.
2. Enter the details for Alternate units in the Stock Item Creationscreen:
   1. Select any simple or compound unit in Units field, as required. The Alternate units field appears.
   2. Select the appropriate Alternate units. You can always create an alternative unit on the fly by pressing Alt+C.
   3. Provide the conversion factor between the simple or compound units and alternative units.
      
   4. Enter other relevant details in the Stock Item Creation screen, as applicable.
3. Press Y to accept the screen. As always, you can press Ctrl+A to save the master.

Use of Alternate Units in a Transaction

Alternative units are provided in TallyPrime to handle the user-defined units which may not have a constant conversion.

A transaction can be recorded using alternative units to define a conversion during the item allocation, so that a calculation for a stock item in any unit will always be accurate, regardless of whether it is expressed as numbers, dozens, or box.

For example, when you are recording a transaction with a:

1. stock item calculated in dozen.
   
2. stock item calculated in a box.
   
3. stock item calculated in numbers.
   

Consequently, Alternative units have the flexibility of defining user-defined units that are dynamic, which ensures that the calculation of the stock item will always come out accurate irrespective of the unit.

Opening Stock and Closing Stock Values

In your business, there may be situations when you will find discrepancies in the actual amount of stock in your godown or shop and the amount recorded in the system due to inventory shrinkage, mismanagement of returns, misplacement of stock items, and other human errors. In such cases, you can enter the actual opening and closing stock for the stock item separately.    

1. Create a ledger for the stock item under Stock-in-Handgroup.
   1. Alt+G (Go To) > select Create Master > select Ledger > press Enter.
      Alternatively, Gateway of Tally > Create > select Ledger > press Enter.
   2. Enter the name of stock item.
   3. In the Under section, type or select Stock-in-Hand > press Enter.
2. Enter the amount corresponding to Opening Balance.
3. Accept the screen. As always, press Ctrl+A to save.
4. Enter Closing Balance.
   1. Alt+G (Go To) > select Alter Master > select Ledger > select the ledger you created for stock item > press Enter.
   2. Enter the Date and Closing Balance value. Press Ctrl+A to save

To view the Opening and Closing Balances in your financial report

• Press F11 > set Integrated Accounts with Inventory to No.
• Press Alt+G (Go To) > select Profit & Loss A/c and check Opening Stock and Closing Stock values.