Manage Buying & Standard Cost IN Stock Items

Manage Buying (Purchase) Price Using Standard Cost

Standard Cost is an estimated cost which is derived from the historical analysis of data. Since it is not possible to know in advance the actual cost of any product, you can configure the item master with the standard cost for a particular date or even for a period. On a daily basis, you can enter the date and the price applicable on that date. 

Specify Standard Cost for Stock Item

You can specify the standard cost daily by entering the date for a stock item. You can also specify the standard cost for a period.

1. Open the stock item alteration screen, and configure it to enter standard rates.
   1. Press Alt+G (Go To) > Create Master > Stock Item > press Enter.
      Alternatively, Gateway of Tally > Create > Stock Item > press Enter.
   2. Press F12 (Configure) > set the option Provide Standard Buying and Selling Rates to Yes.
      If you do not see the above option, set Show more configurations to Yes.
   3. Set the option Alter standard rates to Yes.
   4. Enter the Standard Cost with the Applicable From date and Rate per unit.
      
   5. Press Ctrl+A to accept the Standard Rates screen.
2. As always, press Ctrl+A to save.

Record purchases with Standard Cost

When you specify the standard cost for a stock item based on the voucher date, the same appears when you select that stock item in the voucher, and you can record the purchases with the specified standard cost.

1. Open the purchase voucher screen in Item Invoice mode.
   1. Press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
      Alternatively, Gateway of Tally > Vouchers > press F9 (Purchase).
   2. Press Ctrl+H (Change Mode) > select Item Invoice.
2. Specify the supplier details.
   1. Party A/c Name: Select Cash or Bank for cash purchase and the party name for credit purchase and press Enter.
      You can create the Party A/c on the fly by pressing Alt+C.
      The Receipt Details screen appears.
   2. Receipt Details: Enter the Receipt Details, as needed and press Enter.
      You can choose to enable the option for Order Details by pressing F12 (Configure).
      The Party Details screen appears.
   3. Party Details: You can update the seller details while recording the transaction.
   4. As always, press Ctrl+A to save and proceed.
3. In the Purchase ledger, select the common purchase ledger.
4. Provide the stock item details.
   1. Name of Item: Select the stock item for which you have defined the standard cost.
   2. Enter the Quantity. Based on the voucher date, the Rate appears per the Standard Cost defined for the stock item.
5. Select additional ledgers, like transportation charges, insurance, or discount, if any.
   
6. Provide Narration, if needed. As always, press Ctrl+A to save.

Even if you have changed the rate per unit in the voucher based on the voucher date, the standard cost defined in the stock item appears in the subsequent vouchers.

Manage Selling Price Using Standard Price

The standard price is a predetermined price set for selling the goods. If you have set a standard cost for your stock items, you can also set the standard selling price. On a daily basis, you can enter the date and the price applicable on that date.

Specify Standard Selling Price for Stock Item

You can specify the standard selling price daily by entering the date for a stock item. You can also specify the standard price for a period.

1. Open the stock item alteration screen, and configure it to enter the standard selling price.
   1. Press Alt+G (Go To) > Create Master > Stock Item > press Enter.
      Alternatively, Gateway of Tally > Create > type or select Stock Item > press Enter.
   2. Press F12 (Configure) > set the option Provide Standard Buying and Selling Rates to Yes.
      If you do not see the above option, set Show more configurations to Yes.
   3. Set the option Alter standard rates to Yes.
   4. Enter the Standard Selling Price with the Applicable From date and Rate per unit.
      
   5. Press Ctrl+A to accept the Standard Rates screen.
2. As always, press Ctrl+A to save.

Record sales with Standard Selling Price

When you specify the standard selling price for a stock item based on the voucher date, the same appears when you select that stock item in the voucher, and you can record the sales with the specified standard price.

1. Open the sales voucher screen in Item Invoice mode.
   1. Press Alt+G (Go To) > Create Voucher > press F8 (Sales).
      Alternatively, Gateway of Tally > Vouchers > press F8 (Sales).
   2. Press Ctrl+H (Change Mode) > select Item Invoice.
2. Specify the buyer details.
   1. Party A/c name: Select Cash or Bank for cash sales and the party name for credit sales and press Enter.
      You can create the Party A/c on the fly by pressing Alt+C.
      The Dispatch Details screen appears.
   2. Dispatch Details: Enter the Dispatch Details, as needed and press Enter.
      You can choose to enable the option for Order Details by pressing F12 (Configure).
      The Party Details screen appears.
   3. Party Details: You can update the buyer details while recording the transaction and print the same in the invoice.
   4. As always, you can press Ctrl+A to save and proceed.
3. In the Sales ledger, select the common sales ledger.
4. Provide the stock item details.
   1. Name of Item: Select the stock item for which you have defined the standard selling price.
   2. Enter the Quantity. Based on the voucher date, the Rate appears per the Standard Selling Price defined for the stock item.
5. Select additional ledgers, like transportation charges, insurance, or discount, if any.
   
6. Provide Narration, if needed. As always, press Ctrl+A to save.

Even if you have changed the rate per unit in the voucher, based on the voucher date, the standard selling price defined in the stock item appears in the subsequent vouchers. If you have selected a price level in the invoice, the rates provided in the price list appear.

Manage Selling Price Using Price List

While doing business, you deal with multiple levels of customers like Wholesalers, Retailers or Dealers. Due to such customers, you may want to fix the selling price of items at different rates based on the type of customer or your preferences. You can create different price levels and assign different price lists to these price levels.

For example, you can create Wholesaler, Distributor, and Customer as price levels and assign applicable price lists to these price levels, as per your requirements. While recording orders and invoices, the relevant prices and discounts automatically appear when you select a price level. You can revise the price list at any point in time for any stock item. Based on the voucher date, the prices are picked from the price list and applied to the transactions.

As price lists are applicable only for stock items and involve auto calculation, this feature is available only when the company is enabled to maintain inventory and invoicing. Once you create price levels, the price list option appears in the Inventory Info. Menu. You can:

• Create a price list for items grouped under a specific stock group.
• View the historical rates and discounts for a stock item along with the current rate and discount.
• View the cost price of the stock items.
• Revise the prices and discounts in the price list by entering a specific percentage or value, or update it one by one, per your business needs.