Creation of Inventory Groups and Ledgers

What is an Inventory Group?

An Inventory Group in Tally Prime is used to categorize stock items based on their nature, type, or classification. Grouping inventory makes it easier to generate reports and manage stock efficiently. For example, a company dealing in electronics might have Inventory Groups like Mobile Phones, Laptops, Accessories, etc.

Steps to Create an Inventory Group

1. Open Tally Prime

   • Launch Tally Prime and select the company in which you want to create the Inventory Group.

2. Go to Inventory Information

   • From the Gateway of Tally, navigate to:

     • create> Inventory masters. > stock Groups

     

3. Enter the Group Details

   • The Create Inventory Group screen will open, where you need to fill in the following details:
   • Name: Enter the name of the Inventory Group (e.g., "Mobile Phones", "Laptops").
   • Under: Select the parent group under which this group falls. By default, Tally provides a group called Primary. If this is a main group, select Primary, or if it is a subgroup, select the appropriate parent group.
   • Should Quantities of Items be Added?: Select Yes if the quantities of items under this group should be summed up for reports, or No if you want the quantities to be handled independently for each item.

4. Save the Inventory Group

   • After entering the required information, press Ctrl + A to save the group.

2. Ledgers

What is a Ledger?

A Ledger in Tally Prime is used to record all financial transactions. Each entry made in a ledger affects the company's balance sheet, profit and loss, or other financial statements. In terms of inventory, ledgers help in recording purchase, sales, or other stock-related accounting.

Steps to Create a Ledger

1. Open Tally Prime
   • Ensure that the correct company is selected in Tally Prime.
2. Go to Ledger Creation
   • From the Gateway of Tally, navigate to:
     • Create > Accounting Masters > Ledgers
3. Enter the Ledger Details
   • The Create Ledger screen will appear, where you can enter the following details:
   • Name: Enter the name of the ledger (e.g., "Sales Ledger", "Purchase Ledger").
   • Under: Select the group under which this ledger will be categorized. Tally provides predefined groups such as Sales Accounts, Purchase Accounts, Bank Accounts, Sundry Debtors, etc. Choose the relevant group based on the nature of the ledger.
   • Inventory Values are Affected: If this ledger involves inventory transactions (e.g., sales or purchases), select Yes to link the ledger with inventory. This will allow you to track stock changes in real-time.
4. Save the Ledger
   • After entering all details, press Ctrl + A to save the ledger.

3. Using Inventory Groups and Ledgers Together

Inventory Groups and Ledgers are closely integrated in Tally Prime. When you create a sales or purchase voucher, you can select both the stock items (organized under Inventory Groups) and the financial ledgers (e.g., Sales, Purchase Ledgers). This integration ensures that stock and financial data remain accurate and up to date.