How Tally helps in managing Inventory?
How Tally helps in managing Inventory?
Large and medium-sized businesses use applications to run their business and one of the major areas that need to converge amongst these applications is the Accounting, Financial and Inventory information.
Large and medium-sized businesses use applications to run their business and one of the major areas that need to converge amongst these applications is the Accounting, Financial and Inventory information.
Tally is a complete accounting, inventory, taxation and payroll software. While it is most popular for providing accounting solutions, the software is also helpful for managing stock and inventory items. Tally can help to keep track of inventory records, stock keeping, invoicing, purchase orders, stock valuation, and other functions.
Thanks to the Excel to Tally Import Utility feature available in Tally ERP 9, many users can easily shift to using the Tally platform for their inventory needs. It basically means that data from Excel to Tally can be seamlessly transferred with a just a few clicks. Hence, small businesses that used to keep their inventory records on Excel sheets can transfer all their stock details to Tally in no time. The software is user friendly and easy to operate for everyone.
Tally can help to manage inventory in the following ways:
Maintain stock items
Companies can organize their stocks in a more orderly manner with Tally. Users can create stock groups, stock sub groups, and different product stock categories. Users can enter stock items under a particular warehouse. Tally allows organizations to view stocks across multiple warehouses. While making a sale, sales agents can decide from which warehouse the stock has to be utilized. It also allows users to maintain the stock items batch wise. This way, the expiry dates for each batch can be monitored easily.
Multiple units of measurement
A large part of inventory management is to do with purchasing stock items from different vendors. These stocks are bought on the basis of quantity, and quantity is measured in units. Tally allows users to create multiple units of measurements for effective inventory management. Items can be stored under different units of measurement like dozen, carton, kilogram, litre, etc. The same stock item can even be stored under multiple units of measurement. Example, a wholesaler might purchase plastic bottles in kilograms cost, but they sell it in packs of a dozen.
Ageing Analysis
The stock ageing analysis in Tally ERP 9 is very useful in making sure that an organization does not obtain new stocks before the old stocks are finished. The ageing analysis report displays the age of the stock in hand. It classifies the complete inventory on an age-wise break-up. This helps to identify slow-moving items. It enables the user to make informed decisions while ordering new stock.
Stock movement records
Tally keeps a very comprehensive record of all stock movements. Inventory transactions are tracked via Goods Receipt Notes, Delivery Notes, Stock Transfer Journals, Manufacturing Journals as well as Physical Stock Journals. All the movements of each stock item is fully recorded and maintained in Stock Registers.
Movement Analysis
The Movement Analysis Report helps to understand who are the suppliers of a product, who are the consumers, at what rate the product is being procured, and at what rate it is being sold. This report helps businesses analyze every item and determine the rate that would work best from the supplier’s side, and the best rate at which it can be sold to a customer. This is the key benefit of inventory management software.