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9.     Handling Stocks of Different Parties in Tally.ERP 9

Did you know that with the Tally.ERP 9’s Godown enhancement feature, tracking how much of your stock is lying with third party or how much third party stock is lying with you, is no longer an issue?


In today’s business, where manufacturers, buyers or resellers keep multiple stock items belonging to different parties, maintaining stock items and carrying out stock evaluation can become a challenge. Many times a manufacturer has to send stock items for Job Work or receive third party’s stocks for servicing and in such situation generating accurate stock report can become more complicated. However, the new enhanced godown feature in Tally.ERP 9 allows users to create Godowns based on the possession type for the stock items, and this function enables users to track which Godown stores third party stocks and also allows tracking which stocks are lying in third party Godowns. Based on the options selected for each Godown, the Stock Valuation gets affected. Hence, this feature helps users get better stock management and more accurate Stock Summary report.



Creating Godown with Different Options


The new Godown enhancement feature in Tally.ERP 9 gives users the option to define Godowns of different types like ‘Use for Third Party Stock with Us’ and ‘Use for Our Stock with Third Party’.


The first option ‘Use for Third Party Stock with Us’ does not affect company’s Books of Accounts as the Godown stores stock items which are third party’s assets. Alternatively, the second option ‘Use for Our Stock with Third Party’ affects company’s Books of Accounts as the stock items are owned by the company regardless of which Godown they are lying in.


To make use of these features, we first need to enable ‘Multiple Godowns’ in Tally.ERP 9.


• Go to ‘Gateway of Tally-> F11: Inventory Features’

• Set ‘Yes‘ to ‘Maintain Multiple Godowns’



Handling Stocks of Different Parties in Tally.ERP 9


To create a Godown,


go to ‘Gateway of Tally-> Inventory Info. -> GoDowns->Create’


The three different types of creating Godowns are shown:




Handling Stocks of Different Parties in Tally.ERP 9


Note: Both the options – ‘Our Stock with Third Party’ and ‘Third Party Stock with Us’ cannot be set as ‘Yes’ at the same time.


Allocating Items to Godown


There are two ways to allocate items to Godowns – during Item creation or alteration and while passing transactions.


Item Allocation to Godown during Item Creation


Let’s assume a company receives 50 quantity of third party’s stocks ‘Item A’ for servicing and let’s allocate these items to company’s Godown ‘GD-Third Party Stock’.


· Go to ‘Gateway of Tally-> Inventory Info-> Stock Items->Create’


· Enter ‘Item A’ in ‘Name’


· Define ‘Units of Measurement’ as ‘nos’


· Enter ‘50’ in ‘Opening Balance’ and press ‘Enter’



Handling Stocks of Different Parties in Tally.ERP 9


· The ‘Stock Item Allocation’ screen will be displayed on the screen; here you can allocate the ‘Item A’ to ‘GD-Third Party Stock with Us’ which is a Godown of type ‘Third Party Stock with Us’.




Handling Stocks of Different Parties in Tally.ERP 9


· Press ‘Enter’ and click ‘Yes’ to accept the screen.


Item Allocation to Godown while Recording Transaction


The second way of allocating items to Godown is while passing a transaction. Let’s create a Stock Journal for transferring company’s own stock ‘Item B’ lying in company’s Godown to third party’s Godown ‘GD-Our Stock with Third Party’.


· Go to ‘Gateway of Tally->Inventory Voucher->F7: Stock Journal’

· Select ‘Item B’ in ‘Name of Item’



Handling Stocks of Different Parties in Tally.ERP 9



  • Select ‘Main Location’ under ‘Godown’
  • Enter ‘Quantity’ and‘Rate’.
    • In the ‘Destination’ side, select the same ‘Item B’ for ‘Name of Item’. Enter the same ‘Quantity’ and ‘Rate’ but for ‘Godown’, select ‘GD- Our Stock with Third Party’ as shown. This way, company’s own stock ‘Item B’ is allocated to third party’s Godown during transaction.



    Handling Stocks of Different Parties in Tally.ERP 9


Stock Summary


The Stock Summary in Tally.ERP 9 is a report that shows up-to-date information about the quantity, rate, closing value and location of stocks. The Godown enhancement feature enables Stock  ummary report to drill-down and show in-depth details of the stocks lying in third-parties’ or company’s own Godown.


To view the Stock Summary, go to ‘Gateway of Tally->Stock Summary’.



Handling Stocks of Different Parties in Tally.ERP 9


Note:   The default view of the Stock Summary shows items which affect company’s Book of Accounts i.e. company’s own items lying in its Godown and third-party’s godown.


To view Stock Summary based on Godown Types, press ‘Ctrl+G’ or click ‘Godown Types’ button to go to the ‘Change Stock Details’ screen.



Handling Stocks of Different Parties in Tally.ERP 9


· Press ‘Enter’


· Press ‘F1: Detailed’ to view Godown names as well.


This viewing option enables users to have complete details of how much stock is lying in whose godowns, at any point of time as shown:


Handling Stocks of Different Parties in Tally.ERP 9


Hence the Godown enhancement feature in Tally.ERP 9 is helpful for instant clarity about stocks managed by a company.



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