Stock Item Re-order Level set up in Tally
Stock Item Re-order Level
Re-order level is the pre set Inventory Stock Levels at which Stock replenishment action should be taken. It is plan for Scientific Inventory Management System. The objective is minimum investment in Inventory (minimum Inventory Carrying Cost) avoiding stock-outs.
Re-Order levels are normally set for Stock Control Items like:
- Items which are regularly consumed / Sold
- Items whose sale / consumption trend is predictable
- Items whose non-availability in time may cause loss of Sales/ Production
Stock Item Re-order Level Set Up in Tally
The Reorder Level may be set up in 2 ways :
- Estimated : The level fixed is based is set on past experience or rough estimate based on normal activity level of the organization (herein referred as Simple Re-order Level).
- Computed : The level is computed on the basis of consumption and the inventory replenishment period (herein referred as Advanced Re-order Level)
At Gateway of Tally > Inventory Info. > Reorder Levels, select the Group (or select All Items) to get Specify Re-Order level screen to enter / alter Re-Order Level for the Items of the selected Group (or All Items). Here you get following Toggle Buttons to set Re-Order Level screen Modes :
- Re-Order Stock Level Entry : R: Simple Re-Order / R: Adv. Re-Order Toggle button. Re-Order Level means the stock level at which new order should be placed for replacement of Stock
- Minimum Quantity Entry : M: Simple Min Qty / M Adv. Min Quantity Toggle button. Minimum Order Quantity means the optimum Re-Order quantity to be ordered when the stock reaches the Re-Order Level.
Stock Item Re-Order Level Entry in Tally
This is convenient when you know the Re-Order Level & Re-Order Quantity for each Item, upon your own judgment or computation.
To enter Re-Order levels in Simple Mode, click the Toggle button :
- R: Simple Re-Order to get Re Order Quantity column
- M: Simple Min Qty to get Minimum Order Quantity column
Now enter the Re Order Quantity & Minimum Order Quantity as follows :
- Re Order Quantity : Enter the Stock Level (Re-Order level) at which new Purchase Order is to be placed (New Purchase Order to be placed when Stock reaches this level)
- Min Order Quantity : Enter the Re-Order Quantity (Order Quantity of the new order to be placed, when stock reaches the Re-Order Level)
Simple Re-Order level Entry in Tally
Stock Item Re order level entry Buttons in Tally
Re-Order level Entry button bar in Tally
Stock Item Re-Order Status Report in Tally
Having entered Re-Order data, select Display > Statement of Inventory > Reorder Status and then select the Group (for All Items, select Primary) to get Re-Order Status report for all underlying Stock Group / Stock Item for the selected Stock Group.
Re-Order Status Report in Tally
Exploring Stock Item Re Order Status Report in Tally
From Re Order Status Report, you may drill down from different columns of the Report, to get related detailed reports. You can move cursor sideways to different fields (except for computed figures like Nett Available, Shortfall or Order to be placed) and drill down to respective underlying report (press Enter on respective column), as explained below:
| Column | Description | Drill Down |
| Name of Item: | Shows Name of the Item | Stock Item Movement Analysis (F-3A) showing Name of Suppliers Basic Rate & Effective Rate. You can further drill down to Item Voucher Analysis |
| Closing Stock | Shows Stock of the Item at the report period end date | Monthly Summary You may further drill down to get Stock Vouchers |
| Purchase Orders Pending: | Shows Quantity of Pending Purchase Order of the Item at the report period end date | Outstanding Purchase Order Report from where you can further drill down to selected Purchase Order. |
| Sale Orders Due | Shows Quantity of Pending Sales Order of the Item at the report period end date | Outstanding Sales Order Report from where you can further drill down to selected Sales Order. |
| Net Available | Shows the quantity for Free Sale ( Nett Available = Closing Stock + Order pending – Sales Order Due | |
| Re Order level | Shows the Re – Order Level as entered | Re Order Level entry for the Item |
| Shortfall | Shows the Shortfall (Quantity for which further Purchase Order to be placed). Shortfall = Reorder Level – Nett Available where Nett Available is lower than Re Order Level | |
| Min Re-Order Quantity | Shows the Minimum Re Order Quantity for the Item as entered | Re Order Level entry for the Item |
| Order to be Placed | Shows the Quantity of Order to be placed based on Re Order Quantity |
Stock Item Re Order Level Report Buttons in Tally
At Order Level Report,you get following Buttons :
Re-Order Status Report Display Button Bar in Tally
- Click F4:Group to select the Stock Group (or select All Items) for which Re-Order Stock Report is to be displayed
- Click A: Re-order Only / A: Show All toggle button as follows :
- A: Re-order Only : To get the list for only those Items whose stock has gone below the Re-Order level
- A: Show All : To get the list showing Inventory Re-Order Status of all Items
Stock Item Re-order Item Movement Report Display in Tally
At Re-Order Status Report, drill down through any Item to get Item Movement Analysis showing Party wise breakup of Sale / Purchase of the Item (Item Movement Analysis has been explained earlier).
Stock Item Re-order Item Movement Report Display in Tally
Thus Reorder Status Report shows various critical information related to Orders at a central place from where you may get related figures by moving around through various columns to get finer details.
Stock Item Re-order Item Movement Report Display in Tally
Stock Item Re-order Item Movement Report Display Button Bar in Tally
Stock Item Reorder Parameters set up in Tally
In simple re-order entry, the estimated value of Re-Order Level & Minimum Order Quantity is entered.
In advanced mode, instead of making estimates, the values are computed through formula for using scientific Inventory Control methods.
Stock Item Reorder Parameters set up in Tally
Stock Item Reorder Stock Level Parameters Entry in Tally
At Re-Order level entry screen, Click R: Adv Re-Order button to get Advance Reorder Entry screen. At Advance Reorder Entry screen, enter the Re Order Quantity as follows :
- Reorder Quantity : Enter the estimated (maximum / minimum) Re-Order Quantity (this should be according to standard pack size of the Item, if any).
- Advance Parameters : Set the following under the section Advance Parameter for Re-Order level to compute the alternate value of Re-Order Quantity for more accurate computation based on consumption parameters (in 2 components)
- Period : At Period, Select the period for which stock should be maintained (e.g day, week, month, year)
- Criterion: At Criteria, select the criterion (lower/ higher)
The Re-order level would first be computed as per consumption for the specified period and then subjected to the limit specified at Criteria. For example, Re-Order Quantity, 1000, Consumption – 10 days (@60 per day) and criteria – Higher, The Re order level would be computed as 1000 (higher of 1000 or 10×60). If the criteria is specified as Lower, then the Re order level would be computed as 600 (lower of 1000 or 10×60).
Stock Item Reorder Quantity Parameter set up in Tally
Minimum Order Quantity means the Optimum Quantity that should be ordered when the stock reaches Re Order level.
Stock Item Re-Order Quantity set Up in Tally
At ReOrder Entry screen, Click M:Adv Min Qty button to set for Advanced Minimum Quantity
- Minimum Order Quantity : Enter the estimated Minimum Order Quantity (this should be according to standard pack size of the Item, if any).
Set the following under the section Advance Parameter for Minimum Order to compute the alternate value of Minimum Order Quantity for more accurate computation based on consumption parameters (in 2 components)
- Period : Select the period for which stock should be maintained (e.g day, week, month, year)
- Criterion: Select the criterion (lower/ higher)
The Minimum Order Quantity would first be computed as per consumption for the specified period and then subjected to the limit specified at Criteria. For example, Minimum Order Quantity, 500, Consumption – 5 days (@60 per day) and criteria – Higher, The Minimum Order Quantity would be computed as 500 (higher of 500 or 5×60). If the criteria is specified as Lower, then the Minimum Order Quantity would be computed as 300 (lower of 500 or 5×60).
Stock Item Reorder level & Quantity Entry in Tally
You may also set up Advanced option both for Re Order Level and for Minimum Order Quantity, At Re-Order screen, Click both the toggle buttons as follows to get Advance Re-order / Min Quantity entry screen:
- R:Adv Re-order to set for Advanced Re-order Level
- M:Adv Min Qty to set for Advanced Minimum Quantity.
Now set both the parameters as described above.
Stock Item Re-Order level & Quantity set Up in Tally
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