Stock Item Godowns in Tally

Stock Item Godowns in Tally

Godowns are location of materials storage. Multiple Godowns are often used to  facilitate storage and movement of goods

Though Godown and Warehouse seem to have similar meaning, in Tally, Godown have some special characteristics.

In general terms, Ware house means a place where Stock Items are stored. In Tally, any demarcated and uniquely identified storage space may be treated as a separate Godown, to maintain separate stock reports.

When Stock Items are stored in different locations, you may maintain the transactions and stock of Items with location (Godownwise) details.

Like Stock Item Groups, Godowns may be organized into different levels.

Any storage space may be treated as a separate Godown to maintain separate stock reports. The Storage spaces (i.e Godowns) may be logically organized into Warehouses, Sheds, Godowns, Racks, BINs, etc. in a multi-tier hierarchy for better organization, to systematically manage storage & handling of Stocks and prepare Stock Reports.

Normally, a Godown is part of the Company’s organisation, where Company’s Goods are stored. However, any location where Company’s Goods (owned or held in Custody) is stored, is called the Godown of the Company. So, the storage place where goods of Third Party held by Company or the storage place where Company’s Goods are held by Third Party will also be treated as Company’s Godown, irrespective of location. So, a third Party Warehouse or goods held by carrier (e.g Goods-in-Transit) etc, are also treated as Company’s Godown.

External Agencies treated as Stock Item Godowns

Sometimes the goods may lie at other places. For example, goods despatched to Selling Agents, Branches or third party Jobbers are in fact company’s property. So, these may be conveniently treated as Godown to get Stock & transaction report with Godownwise details.

Where goods are sold trough Agents,  Goods are delivered to Agent, who sells to the Buyers and send us a statement of sale. A sale Invoice is drawn on the buyers.

To track transactions & stock lying with Agents, create a Godown for each Agent. Create Delivery Challan for goods delivered to Agent. Create Sales Invoice selecting the respective Agent (from Godown list).

Godown features used for other attributes of Stock Items

Apart from Storage Place, Godown may alternatively be used for other attributes (instead of storage locations). For example, a Company may use Godown for Grades (like Fresh, Seconds, Defectives), Colour (White Black), Size (22, 18, 16 etc) etc

Example : TVs sets of different brands to be classified as per Size. Each brand has different models (with different price). TVs come in several sizes (like 16, 20, 24, 28, & 30 inches size). The size is common for all the brands. The following scheme to maintain Stock as per Size All Items are stored in Showroom.

To have only one Product Master for each Brand (for all the Models & Sizes). you may treat Brand as Product, Godown as Size (as Size is common for each Brand & Model)  & Model as Batch (as Model vary for each Brand). Activate Multiple Godown (as explained)

List of Sizes (Godowns)

TV 16”

TV 20”


List of Products

Samsung  TV



Now enter Purchase Voucher for the product and select Size (from Godown). In  Sales Voucher, similarly select the Godown after selecting the Product. Now in Godown Summary, you will get Sizewise details of each TV Brand. You may also get columnar Report with columns for each Size.

Godown Activation in Tally

Click F11: Features > Inventory Features  to get Inventory Features  screen.  At Inventory Features  screen (F-1A), set Yes at Maintain Multiple Godowns / Excise Units  to enable creation of new  Godowns (consequently the option Godown /Excise Units will get activated at Inventory Masters Menu to create New Godowns.  A Reserved Godown  named Main Location will be internally auto created by Tally.

When materials are stored in one place only, then there is no need to activate Godown System. You should normally activate Godown only when same materials are stored in different places (multiple Godown), for better control & accounting of materials

Godown Activation  in Tally

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