Wednesday, May 9, 2012

Define the terms: Stock items, Stock group and Stock categories ? (Tally)

STOCK ITEMS

What you receive or issue, Sell or purchase, each item is a Stock Item.  For example, for the Bookshop from you buy this book, this book is a Stock item.  Similarly stock items can be clubbed together and can be called Stock groups.  For example, in a department store of clothes, Gents clothes can be a group having Pants, Shirts, Coats, etc., for under that category.  Similarly for Ladies and Children.

Usually Stock Items are measured in a Unit, e.g., Pcs, Kg, Ltr, etc.  Different items may be measured in different units.  You can create Unit of Measurement as per your business need.  You can specify the Unit in which the item is transacted-normally one Unit.  However, some items may be transacted in 12 units also called dozens.

Tally allows you to specify upto 2 Units for a single Stock Item, one as Unit and the other as Alternate Unit, you define relationship between the two Units.

A company has usually many places to store inventory items, they are called godowns normally.  Each godown has its inventory and that when combined with inventory of other godowns give the complete picture of the company’s inventory.  This helps in locating an item which may not be there at one location, then, it can be transferred from other godown where it is there.

Tally allows you to create Stock items as per your requirement, its alternate Name (Aliases), Part Numbers, Description, Remarks, etc.  You can optionally maintain Batchwise details, enter Purchase and Sale prices, specify Stock Valuation Method for an item.

STOCK GROUP

As mentioned earlier, stocks items can be clubbed together to form stock groups.  We had taken the example of Gents clothing.  Normally thousands of Stock items are traded in an Organization.  It may become unmanageable if the items are not properly grouped.  You can arrange all Stock items into Stock Groups based on common features (e.g., based on Brand, Quality, Specification, etc.)  You can nest Groups to any depth, as such.

Gents Clothing
Pants
Shirts
Coats, etc.

Women Clothing
Sarees
Dresses
Other accessories, etc.

Children Clothing
Toddler items
Children clothing
Toys, etc.

Grouping of stock items helps to get Group specific report.  In above example, to get a Stock report of Sarees only, you can conveniently get it by selecting Saree Group.  In fact Stock Group provides similar advantage as Account Groups provide for organization of Accounts.

Stock Categories

Stock Categories offer the benefit of classifying an item in another dimension – thus at any moment you can find similar items.  In the above example, gents shirts may be of different types, for example, of brands like Live-in, Newman, Provouge, etc.

Such additional information for item help when a customer asks for one item which is not available in Stock or enquiries about similar items.

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