December 27, 2024
What are the top 5 inventory management features in Tally? Tally offers robust tools to simplify inventory tracking and control. The Top 5 Inventory Management Features in Tally help you classify stock, define units, manage reorders, track expiry, and create Bill of Materials—all essential for smooth business operations.
1. Inventory Classification
What is Inventory Classification in Tally?
Inventory Classification allows you to group and categorize your stock items for better visibility. You can define unlimited stock groups, categories, batches, and Godowns in Tally Prime, which helps organize and analyze your inventory efficiently.
Steps to Access:
- Go to Gateway of Tally → Alter → Masters
- Select Stock Groups / Categories / Batches under Inventory Masters
- Choose Create and define your inventory hierarchy
This feature simplifies reporting and enhances clarity in stock management.
2. Units of Measure
How does the Units of Measure feature help in Tally?
This feature helps businesses that buy and sell goods in different quantities. You can define conversion rates between units—such as purchasing in kilograms and selling in grams.
Steps to Set Up:
- Go to Gateway of Tally → Alter → Masters → Show More Options → Unit
- Select Create and define units and conversion logic
- Use these units while creating stock items and vouchers
It’s one of the most flexible inventory management features in Tally for multi-unit handling.
3. Re-Order Level
How to set a Re-Order Level in Tally?
The Re-Order Level feature ensures you never run out of stock. It automatically alerts you when an item quantity falls below the defined minimum.
Steps to Configure:
- Navigate to Gateway of Tally → Alter → Masters → Show More Options → Reorder Level
- Select the item and enable Reorder Levels
- Define minimum and reorder quantities for each stock item
This feature helps businesses maintain an uninterrupted supply chain.
4. Tracking Manufacturing and Expiry Dates
Why is batch tracking important in Tally?
Tally allows you to track manufacturing and expiry dates for each stock batch. This ensures you sell or use items before they expire and maintain accurate stock rotation.
Steps to Enable:
- Go to Gateway of Tally → Alter → Masters → Stock Item
- Enable Batch-Wise Details and define expiry dates
- Track each batch in your purchase and sales transactions
This feature is essential for industries like FMCG, pharma, and food manufacturing.
5. Bill of Materials (BOM)
How does the Bill of Materials feature work in Tally?
The Bill of Materials lets you define raw materials, components, and quantities required to produce finished goods. It’s a key feature for manufacturing businesses.
Steps to Set Up:
- Go to Gateway of Tally → Alter → Masters → Stock Item
- Enable Bill of Materials
- Add the components, quantities, and by-products involved
This feature improves accuracy in production planning and inventory costing.
How to utilize these Tally Inventory features in the BI Reporting Tool?
Tally’s inventory features provide the solution for managing stock efficiently, but to explore advanced inventory reporting, try BI tools such as EasyReports. It integrates with Tally and offers powerful insights into your inventory data.
What EasyReports offers based on these Tally Inventory management features?
EasyReports is a reporting and MIS automation tool for Tally, SAP B1, NAV, BC and other ERPs. It enhances your reporting capabilities & offers various standard and customizable reports around different areas of your business including inventory management.
Some of the key Inventory management reports are:
- Stock Clearance: This report is used to identify the customer to whom a particular item can be sold when the stock clearance sale is on. Decide on what rate to offer to the customer based on the last sale date and last sale rate.
- Production Dashboard: Helps to get machine-wise detailed analysis. Track downtime by each machine. Get machine analysis for a particular month or monthly analysis for a particular machine.
- Inventory Performance: This report can be used to analyze the performance of the item in terms of growth and Stock holding days.
- Non-Moving Items: This report helps to identify the items which not moved for “N” number of days. You can also filter items that are not moving for last N days, filter data company-wise, filter for a particular stock category.
These are the top 5 inventory management features in Tally & also how you can use them in BI tools like EasyReports. EasyReports offers you many other standard and customized reports and MIS options. To learn more, visit our website www.easyreports.in
Disclaimer: This blog article is for educational purposes only. Tally is a product of Tally Solutions Pvt. Ltd. and we do not claim any affiliation.
Frequently Asked Questions (FAQs)
1. What are the top 5 inventory management features in Tally?
The top 5 inventory management features in Tally are Inventory Classification, Units of Measure, Re-Order Level, Expiry Tracking, and Bill of Materials.
2. How do I set up Re-Order Levels in Tally?
In Tally Prime, go to Gateway of Tally → Alter → Masters → Show More → Reorder Level.
Enable reorder levels and define minimum quantities for each stock item to maintain optimal stock levels.
3. Can I track manufacturing and expiry dates in Tally?
Yes. You can enable Batch-Wise Details while creating a stock item.
This allows you to define both manufacturing and expiry dates for each batch, helping you manage perishable or time-sensitive items effectively.
4. How does EasyReports enhance Tally inventory reporting?
EasyReports BI integrates seamlessly with Tally to automate your inventory reports.
It offers advanced dashboards such as Stock Clearance, Production, Non-Moving Items, and Inventory Performance reports for deeper insights.
5. Why use BI tools like EasyReports with Tally?
BI tools like EasyReports provide visual dashboards, real-time analytics, and automated reporting, which extend Tally’s standard capabilities.
This helps businesses make faster and more data-driven decisions.