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A Helpful Guide to Inventory Management and Tally ERP

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ERP has become one of the most common words in the field of accounting technology. From small to large, companies have been using ERP systems to manage their business operations and assist them in decision making. So what is Tally ERP and what are its uses and functions that you can apply to your business?

Helpful Guide to Inventory Management and Tally ERP

Tally is an ERP (Enterprise Resource Planning) software that helps you record day to day business data and details and is touted to have one of the best inventory management system. It can be integrated with all kinds of business processes like finance, sales and purchase, payroll, inventory and more. Tally ERP has a provision that allows the user to store business transactions in different accounts in detail and follows a double entry accounting system to eliminate the possibility of errors.

An ERP system therefore binds all the various processes and functions of a business into a single database thereby optimizing and streamlining the functioning of the organization. In this article we will focus on the inventory management module that is offered by Tally ERP.

Inventory Features of Tally ERP

Inventory features in Tally are basically aimed at maintaining the optimum inventory levels. Tally ERP has many features that can be used to effectively manage the inventory, especially when setting up a small business in UAE. The user can comprehensively manage stock by creating an items list, stock groups and subgroups, assigning them different product stock categories.

By creating multiple godowns and viewing their stocks, the user can choose which particular stock they want to utilize. There are also provisions to allow users to allot batches to items and manage manufacturing and expiry dates for these batches.

The Stock Summary Report would then give a complete picture of the inventory, classified according to categories and groups and how much stock is available in which godown. It also provides the user with a profitability analysis on a monthly basis.

Seamless Reporting and Use of Vouchers

Depending upon the needs of the business, Tally ERP makes use of various vouchers like Stock Journal, Physical Stock Verification, Receipt Note, Delivery Note, Material In and Material Out.When a stock comes in the Material In voucher can be used to raise the stocks, and in case stock is moved from one godown to another, the Stock Journal voucher can be used to update the same. Similarly, when stocks are resupplied, a user can make a Receipt Note.

The effective management of any business is measured by its profitability. One aspect of this is maintaining the optimum supply chain balance. It can get difficult to decide the quantity of order when the need to replenish stock arises. Based on the history of orders placed, orders in hand, and the current stock levels, Tally ERP can help determine the reorder quantity.

Other important features include the Movement Analysis Report, which helps the user analyze every item and the rate at which it can be sold, the Ageing Analysis Report, which can help determine between the fast-moving and slow-moving items, and the Stock Query feature which gives a compiled detailed view of the product so that the user can do a stock audit and easily quote a price of the item to the customer. These attractive and effective functions make Tally ERP a very handy tool in the hands of business managers who can get a wholesome and efficient working experience.