Inventory Stock Adjustments  – Physical Stock Voucher in Tally Prime

Physical Stock Verification

For materials control and proper accounting, organisations measure and count Stock Items Inventory (referred as Physical Stock) and compare with the figures in the Books of Accounts (referred as Book Stock). 

Adjustment of Physical Stock & Book Stock Difference

Ideally, the Physical Stock should match with Book Stock. However, in practice, some discrepancy may occur due to various reasons like shortage, leakage, evaporation, wrong issue, mistake recording, and other reasons. The record is then checked and book adjustment for the difference is recorded, to match the Physical and Book Stock, for proper accounting.

Accounting of Physical Stock & Book Stock Difference

Such adjustment for difference in stock are normally done through a Stock Journal Voucher, so that Stock and Stock Value are properly accounted for.  However, Tally provides another special type of voucher, called Physical Stock Voucher, to adjust the stock on the fly, without incorporating the adjustment in accounts books. This allows gateway for accounts manipulation by management or to cover up shortage by employees. It also affects valuation of inventory as the quantity gets adjusted without corresponding effect in value.