Tally Accounting
Posted by Asok K Nadhani on

Stock Item Batch Controls in Tally

Stock Item Batch in Tally

Stock Item Batch means a Batch (lot) of similar Items. Each Batch (lot) is separately identified by an unique Batch ID or Batch Number.

  • In case of small Items (like Medicines), all the items in a lot may be identified by the same Batch ID.
  • In case of larger Items (like Machinery), each Item may be separately identified by an unique Batch ID.

Stock Item Batch Numbers in Tally

Stock Item Batch Numbers are physical unique identifiers (Stock Item Batch ID) to specifically identify an Item (e.g a Machine) or a lot of similar Items (e.g a lot of medicine).

  • In case of single identifiable Item (e.g a Machine) Stock Item Batch Numbers are Physically  placed on the Item to identify the specific piece.
  • In case of lot of similar Items, Stock Item Batch Numbers are normally  Physically  placed on the Item or on the packing (e.g Medicine, Food Items) to identify the specific lot

Stock Item Batch Number maintains next level details of an Item. It is normally used for perishable / service warranty Items (using Mfg & Exp Dates in food & medicine items, warranty period for durable items, etc.).

Stock Item Batch Number may be further associated with Manufacturing & Expiry Date, as commonly used for perishable Items like Food, Medicine and other Items with limited shelf – life (must be sold within Expiry Date), and for Item with limited Guarantee / Warrantee period (can be serviced within Service Contract period)

Stock Item Batch Number Usage

Stock Item Batch Numbers are used for following purposes :

  • To physically identify an Item : Through Stock Item Batch Number, any Item (or a lot of similar Items) is  specifically identified for Inventory transaction, service, warranty
  • To record expiry date of the Item : Through Stock Item Batch Expiry date, delivery / consumption  of perishable Item or servicing of Items under specified period of guarantee / warrantee is controlled.
  • Stock Age : To know the time period since when an Item is lying in Stock

Stock Item Batch numbers may also be sometimes used for other attributes of Item (like Model, Colour, Size etc

Stock Item Batch Number Feature Activation in Tally

At GoT, Click F11: Features>select Inventory Features to get Inventory Features screen. At Inventory Features screen,  Under Storage & Classification section, at Maintain Batchwise Details , set :

– Yes to activate the Batch option for the Company

– No. The Batch Features will not be activated for the Company

Stock Item Batch Activation for the Company in Tally

Stock Item Batch Expiry Date Feature Activation in Tally

Sometimes, apart from the physical ID (the Stock Item Batch Number), the  Expiry Date (e.g Date within which the Item may be sold or serviced under guarantee / warrantee terms) is also to be maintained.

Having activated Stock Item Batch Feature, at Set Expiry Dates for Batches, set  

–  Yes to Activate Expiry dates also for the Company. Consequently, at Stock Item creation / alteration (Inv Info>Stock Items), you get additional option to set Manufacturing / Expiry Date for the Stock Item. For such Items, apart from Stock Item Batch Number, Mfg / Expiry Dates are also to be entered in vouchers.

–  No.  The Expiry Date field in Transactions will not be available, however, Stock Item Batch Numbers may be entered. This is useful for on perishable goods where Expiry Date is not Important.

Stock Item Batch Activation for specific Stock Item in Tally

Having Activated Stock Item Batch for the Company, you may selectively activate Stock Item Batch for each Stock Item. Consequently at Stock Item Master, you may set the Stock Item Batch option for any Item for which you like to get Stock Item Batch/Lot-wise transaction and Stock details.

Stock Item creation has been explained earlier.

Stock Item Batch Activation at Stock Item in Tally

At Stock Item creation / alteration screen, at Maintain In Batches :

  • Set Yes to activate Stock Item Batch feature for the Stock Item. Consequently, you will get another option Track Date of Mfg :
  • Set Yes to activate Mfg Date for the Stock Items. Consequently,  at the option, Use Expiry Dates :
  • Set Yes, to activate Expiry Date also for the Stock Item
  • Set No, Expiry Date will not be activated for the Stock Item. However, Mfg Date will remain activated as per options set
  • Set No. Mfg Date for the Stock Items will not be activated (however Stock Item Batch Number feature will remain activated as set for the Stock Item). Consequently, you will also not get option to set Expiry date.
  • Set No. Stock Item Batch feature for the Stock Item will not be activated

Opening Stock Item Batch details Entry in Tally

Opening Stock Batch details entry in Tally

After you have activated Batch options for a Stock Item, on entry of Opening Stock (at Opening Balance field) for the Item, you get a sub screen to enter Batchwise details of the Opening Stock . 

At Opening Stock entry screen, at the top, the Item Name and the Opening Stock Quantity is displayed. Depending on options set, you get the following fields in the Item Allocation sub screen to enter batch details of Opening Stock:

  • Batch Number: Select New Batch and enter the Batch Number.
  • Batch Manufacturing Date: At Mfg Dt column (appears If you have set Yes to Track Date of Mfg for the Item at Item Master) enter the Batch Manufacturing Date.
  • Batch Expiry Date: At Expiry Date column (appears If you have set Yes at Use Exp Date for the Item at Item Master) enter the Batch Expiry Date.
  • Batch Quantity: At Quantity column, enter the Batch Quantity (and UoM) in the Opening Stock.
  • Batch Rate: At Rate column, enter the Rate (and Rate UoM).
  • Batch Value: At Amount column, the computed Batch Value is displayed (If Rate is entered), which you may change, else enter the Batch Value.

Voucher Entry Configuration set up for Stock Item Batch details in Tally

Having Activated Stock Item Batch Feature for the Company , you have to set Stock Item Batch option at Voucher Configuration.

Voucher Entry Batch Number Configuration in Tally

At GoT>F12:Configure>Voucher Entry, set Yes at Show Batch-wise Details to enable entry of Stock Item Batch Details in Voucher.

Stock Item Batch details activation in Voucher Entry Configuration in Tally

Stock Item Batch details entry in Voucher  in Tally

Various types of Voucher Entry with Inventory details have been explained earlier. Here we describe the steps of entry of Stock Item Batch details in Voucher  for a Stock Item, After selection of a Stock Item in the Voucher, in Item allocation screen, enter the Stock Item Batch Details  (for Item for which Stock Item Batch Details has been activated), as follows:

Stock Item Batch Number in Voucher Entry in Tally

Depending on options set , you get the following fields in the Item Allocation sub screen to enter Stock Item Batch details:

  • Batch Number: You mat create a New Batch or select from an existing Batch, as follows:
    • New Batch : In case of New Batch (normally in Purchase), select New Batch and enter the Stock Item Batch Number in the Box.
    • Existing Batch : In case of existing Batch (Normally in Sales), select the Batch Number from the list of Stock Item Batches.

Stock Item batch details entry in Voucher in Tally

Stock Item Batch Allocation Details in Voucher Entry in Tally

After entry / selection of  Stock Item Batch Number, enter the following details at Batch Allocation screen

  • Batch Manufacturing Date: In case of New Batch, at Mfg Date (this prompt appears if you have set Yes to Track Date of Mfg for the Item at Item Master) enter the Batch Manufacturing Date. In case of existing Batch selected, the Batch Manufacturing Date is carried, which you may change in the Batch Allocation screen in the Voucher.
  • Batch Expiry Date: In case of New Batch, at Mfg Date (this prompt appears if you have set Yes to Track Date of Mfg for the Item at Item Master) enter the Batch Expiry Date. In case of existing Batch selected, the Batch Expiry Date is carried, which you may change in the Batch Allocation screen in the Voucher.
  • Batch Quantity: At Quantity field, enter the Batch Quantity (and UoM).
  • Batch Rate: At Rate field, enter the Rate (and Rate UoM).
  • Batch Value: At Amount field, the computed Batch Value is displayed, which you may change.

This way, you may select  Multiple entries for different Stock Item Batches, with same or different prices, Godowns etc.

Stock Item Batch Details entry in Item allocation screen in Tally

You may set Expiry Date only after you have activated Mfg Date. When Expiry date is activated, in voucher, you may either :

  • Enter the Expiry Date, or
  • Enter the useful life of the Item (jn days / weeks/ months/ Year etc) to compute the Expiry date (Expiry Date = Mfg date + Useful Life)

To select  / enter a Batch having zero quantity in Invoice, at GoT>Configure>Invoice / Orders Entry, set Yes at Show Batches with Zero Quantity  

Stock Item Expired Batches in Tally

Normally, expired item should not be sold / purchased. To control transaction of Expired Items, you need to set up the option as desired at Configuration  / Stock Item.

Stock Item Expired Batches Configuration Set up in Tally

At GoT>Configure>Voucher or  GoT> Configure> Invoice Order Entry, at  Honour Expiry Dates Usage for Batches  (or Click F12:Configure at current voucher entry screen) :

  • Set Yes to prevent issue of Expired Stock Item Batches in General in Inventory Vouchers
  • Set No. Expired Stock Item Batches will not appear in selection list of Stock Item Batches

Stock Item Expired Batches for specific Stock Item in Tally

At Stock Item entry, at Behaviour section (when Advanced Entry is set for the Stock Item), set

  • No at Allow Use of Expired Batches to prevent entry of Expired Batch of the Item Inventory Voucher.
  • Yes to allow entry of expired Stock Item Batches in Inventory Vouchers.

Stock Reports with Stock Item Batch details in Tally

When you have entered Stock Item Batch details in Vouchers, you may get the details of Stock Item Batch in various reports showing Stock Item details. At the Report Display screen Click F12:Configure to get the respective Report Configuration screen. Set Yes at the respective Stock Item Batch option (like Show Batch Details also) to get Stock Item Batch Details (Batch Number, Quantity, date of Mfg & Expiry dates etc as entered in the voucher. Sometimes, at Configuration Screen, you get specific options to selectively show Mfg / Exp date of the respective Stock Item Batch. Set Yes at the respective options (like Show Mfg Date also, Show Exp Date also, etc).

Stock Item Batch property implementation in Tally

Though Stock Item Batch is normally used to physically identify each piece/ lot of Item, Batch Number may also be used for various attributes of Item (like Colour, Size, Model, Brand etc), to classify Items & maintain separate stock accounts for Items with distinct attributes

For example, textile and apparel dealers may use Batch for Model, Colour etc to maintain record of Stock Item according to colour, model (Mfg & Exp Date may be deactivated if not needed in such cases).

Example :  A computer dealer likes to keep stock of Lamps (which come in various shades) as per shades. So, he uses Shade Name as  Stock Item Batch Number  to get Shadewise (Batchwise) Stock.

Stock Item Batch Number entry in Voucher in Tally

At the time of first time entry of a Stock Item Batch (Colour), select New Batch and enter Colour at Batch Number. Later on, for any sort of transaction (Receipt/ Delivery), select the Colour at Batch Number screen (do not enter a new Batch). This way, you get details of Colour in transaction as well as Stock Reports

Stock Item Batch number uses for obsolescence Stock control in Tally

In case of Items of changing model, fashion, where the realizable value of the Item diminishes with passage of time, normally control is maintained through Mfg Date / Purchase Date to know the age of the Item, so that old Items may be quickly sold through discount sale / sales campaign to realize best possible value avoiding loss.

In such case, the Mfg Date  / Purchase Date  is entered in the purchase voucher.  The stock Age Analysis Report  shows the age range wise analysis of stock. In Expiry Date, you may write the date after which the stock should be sold at Discount Price, if still lying till that date, to avoid further loss on the Item.

Stock Item Batch Number Use cases in Industry

Stock Item Batch Aging Analysis

Case 1 : An apparel  distributor maintains Stock Item Batch as per buyer’s invoice number (Buyers invoice number is Stock Item Batch number). He buys directly from manufacturer, so one item is bought from one vendor only). He likes to get stock in the age of 3 months, 6 months and more than 6 months from the date of purchase. Explain how he should maintain Stock Item Batches, enter the Stock Item Batch Numbers in purchase & sales invoices, configure the Stock Item Batch ageing report and print the Stock Item Batch aging report.

Case 2 : How a Medicine dealer likes to know the Stock Item Batches expiring in next 3 months so that he can return the Stock Item Batches to the distributor.  He also wants to ensure that that no expired Stock Item Batches are sold.

Recommendation

He should Activate only Expiry date (Date Of Mfg is not to be entered). Set the option to prevent sale of expired Stock Item Batches.

Now enter the Stock Item Batch number as ‘New Batch’ in Purchase Invoice. Select Stock Item Batch Number as ‘Against Batch’ in sale invoice. Print Age Report of Stock Item Batches

Stock Item Batch as Product Attribute

Case 3 : A hosiery dealer uses Size for each product as Stock Item Batch Number to maintain stock for each size (J = Junior,  S=Standard, L=Large, XL=Xtra Large, XXL = Xtra Xtra Large,  The prices of J/S/L are same while for XL XXL are higher. Explain how he should maintain Stock Item Batches so that he can maintain stock for each size for proper inventory control. enter the Stock Item Batch Numbers in purchase & sales invoices, configure the Stock Item Batch ageing report and print the Stock Item Batch aging report.

Recommendation

As there are 2 types of prices and 5 types of sizes, he may create The Products Stock Items in two ways depending on his convenience how he maintains price lists:

Method 1 : Create 2 Product Masters for each Item e.g Vests (Std) & Vests (Lrg).

He should create 3 Stock Item Batches for :

  • Vests (Std) : J, S & L. In the sale price, enter the sale price in stock Item or in Price List (the sale price is same for these sizes)
  • Vests (Large) : XL & XXL. In the sale price, enter the sale price in stock Item or in Price List (the sale price is same for these sizes)

In sale / purchase invoice, select the proper Stock Item Batch (i.e size) so that he can maintain sizewise stock of each product. The advantage is that he has to enter sale prices only in the Item Master and the prices will be carried in the invoice. This will save substantial time in price entry in Invoice and also eliminate error /manipulation in Invoice

Method 2 : Alternately, he can create only one master for each Product (e.g Vests) and 5 Stock Item Batches (J, S, L, XL & XXL). But he has to enter the price in each invoice as the prices differ for sizes.  He cannot enter Sale Price in Stock Item or in Price List

Case 4 : A Paint dealer sells Paints. He has different Pack Size (1/2 ltr, 1 Ltr, 2 Ltr, 4 Ltr, 10 Ltr etc) for each product and about 12 shades (Blue, Red etc). The prices (per Tin) differ as per size but is same for each shade. Explain how he should create the Stock Items so that he can make proper invoices & maintain stock for each size & shade and get the Stock Item Batch aging report.

Recommendation

In this case, since the prices differ as per pack size, you should create separate stock Item for each Pack Size (1 Ltr, 2 Litre etc) for each product (e.g Asian Acrylic 1 Ltr, Asian Acrylic 2 Ltr,   JN Acrylic 1 Ltr, BP Acrylic 1 Ltr, etc).

Specify the Sale Price in Stock Item or Price List. Now enter Stock Item Batch Number (Colour) in Sales Invoice (select ‘New Batch’ in the first purchase Invoice of  that Stock Item Batch (Colour) and enter the Colour, select Against Batch in all subsequent Purchases and all sales) and select the Stock Item Batch (Colour). This way, you can maintain stock for each Size & Colour.

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