Creating Stock Item - Finished Goods (MRP) [Excise for Manufacturer] in Tally.ERP 9

From Tally.ERP 9 Release 3.1, facility to enter period wise MRP and Abatement has been provided.

To create a Stock Item – Finished Goods,

In F12: Configure (Stock Item Configuration)

  • Set the option Allow ADVANCED entries in Masters to Yes

  • Set the option Allow Component list details (Bill of Materials) to Yes

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

  1. Enter the name of the Stock Item e.g. AquaPure – 1 Ltr in the Name field.

  2. Select the Stock Group Name e.g. Primary in the under field.

  3. Select the unit of measurement e.g. L (Liters)  of the stock item in the Units field.

  4. Select the unit of measurement e.g. Box of the stock item in the Alternate Units field (Use Alt +C to create Unit of Measurement).

  5. Specify 1 Box = 24 L in Where field.

Note: Unit and Alternate Unit details provided in the Stock item master are only for the purpose of accounting the Stock items.

  1. Enable Set Components (BoM) to Yes and press enter to view Stock ltem Multi Components (M BOM) screen

Note: The Bill of Material (BOM) details provided here will be used for Production of the stock Item.

  1. In Stock ltem Multi Components (M BOM) screen

  2. In Name of BOM field enter the BOM name


Note: In Tally.ERP 9 you can create Multiple BOM for a single finished goods. This feature is provided in Tally.ERP 9 Release 3.0. For more information on creating Multiple BOM refer the topic - Creating Bill of Materials for a Stock Item

  1. In Stock ltem Components (BoM) screen

  2. In Unit of manufacture field enter as 1

  3. Under Item and Quantity field enter the details as shown


  1. In Tariff Classification field select the applicable tariff classification e.g. Water from the List of Tariff Classifications

  2. Enable Set/Alter Excise Details to Yes to display the Excise Details sub screen.


  1. In the Excise Details Screen

  2. Excise Unit Name: By default Tally.ERP 9 displays ABC Company as Excise Unit Name.

Note: In Tally.ERP 9 excise units (Dealer/manufacturer) created are identified as godowns. When the option Maintain Multiple Godowns/Excise Units is not enabled in F11: Features > Inventory Features (F2) by default Tally.ERP 9 identifies the excise unit name with the Default Godown named - Main Location


To create more than one Excise Unit user needs to enable Maintain Multiple Godowns/Excise Units in F11: Features > Inventory Features (F2).

  • Reporting UOM: select L (liters) as Reporting UOM. All the reports will display the Stock item details based on the reporting UOM selected.

Note: As Per Central Excise Act, in all the reports relating to stock items are required to be indicated with the relevant Unit of Quantity as specified under Central Excise Tariff Act. The Applicable Unit of Quantity for Mineral Water is ‘L (Liters)’, so it is must to select L (Liters) as the Reporting UOM.

  • Set/Alter Duty Details: Set this field to Yes to view the Duty Details screen.


  • In the Duty Details screen:

  • In Valuation Type field select MRP Based from the List of Valuation Type. Press Enter to view Excise MRP Rate Details screen

  • In Excise MRP Rate Details screen

    • Applicable From: In this field enter the date from when the specified MRP and Abatement are applicable

    • MRP Rate: In this column enter the Maximum Retails Price applicable for the stock item

    • Abatement: In this column specify the Abatement allowed for the stock item.


Note: Observe, you can specify period wise MRP Rate and Abatement allowed. In this case ABC Company had the MRP Rate of 20 applicable form 1-4-2008 and the current MRP rate applicable is Rs.25 with abatement of 48%.

  • Press enter to accept Excise MRP Rate Details screen and return to Duty Details screen

  • In Excise Duty Details screen

  • Applicable From, MRP and Abatement % details will be defaulted based on the details specified in the Excise MRP Rate Details screen. Application will display the latest applicable From Date, MRP Rate and Abatement

  • Select the Basic Excise Duty in the Type of Duty field from the List of  Excise Duty classifications.

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • Specify the Rate of Duty as 16%.

  • Select the Education Cess as the second duty  in the Type of Duty field from the List of  Excise Duty classifications.

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • Specify the Rate of Duty as 2%.

  • Select the Secondary Education Cess as the third duty in the Type of Duty field from the List of Excise Duty classifications.

Note: Secondary and Higher Education Cess is applicable from 11-5-2007

  • In Applicable From field mention the Date from when the specified Rate of Duty is applicable

  • Specify the Rate of Duty  as 1%.


  • In Excise Details screen, under Stock Item Type field select as Finished Goods from the List of Item Types.




Note: Define the Stock Item Components (BOM) under the option Set/ Alter Reporting BOM only when the Stock item has different Stock Item Components than the components defined under the BOM for Production.  BOM Defined under this option is used only for reporting.  

  1. Commodity: Enter the Commodity Code if applicable

  2. Rate of VAT (%): in this field enter the Rate of VAT applicable for the Stock Item e.g. 12.5%


  1. Press Enter to accept and save.

Note: Where Excisable Commodity attracts Additional duties of Excise and Special duties of Excise and so on, the same can activated as required from the List of Excise Duty Classifications.

Tally.ERP 9 Reference Manual LIBRARY
Installation of Tally.ERP9
Site Licensing of Tally.ERP9
Shortcut Keys in Tally.ERP9
Maintaining Company Data
Creating Masters
5a. Accounts Information [Creating Masters]
5b. Inventory Information [Creating Masters]
Voucher Entry
Reports in Tally.ERP9
Excise for Dealer
Excise for Manufacturer
Reports [ Excise for Manufacturer]
Excise for Importer
Service Tax in Tally.ERP9
Tax Collected at Source (TCS) in Tally.ERP9
Tax Deducted at Source (TDS) in Tally.ERP9
Value Added Tax (VAT) in Tally.ERP9
Central Sales Tax (CST) in Tally.ERP9
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