In every business dealing with stock item it is very important to keep the accurate stock of goods. Goods are measured using Units.Every inventory items are sold or purchased in terms of Unit. The units which are used to measure items are Numbers, Kilograms, Milligrams, Litters, Milliliters, Pieces, Boxes, bottles etc. While entering an Item invoice we must have a unit to multiply with the rates to get the total invoice amount.
We can classify the unit of measures based on its nature into two.
- Simple Unit
- Compound Unit
It is important that you should activate inventory along with accounts in Tally ERP 9.To activate inventory in tally erp 9 go to.
F11 Features>F1 Accounts features
Make sure that the option Maintain Accounts only set to No.
Save to features screen by pressing Ctrl+A
How to create Simple Unit
Examples of Simple units are Numbers, Litters, Pieces, Boxes, bottles etc
Let’s create a simple unit in tally
Gateway of Tally>>Inventory info>>Unit of Measure>>Create
You can access unit creation screen from the gateway of Tally Press I U C hotkey from your keyword .This means that Press I, Then U, Then C from keyboard to access Unit Creation Screen
In the unit creation screen you can see the following field
- Type: By default it is Simple
- Symbol: This is the Formal symbol of the units creating, the symbol of Liter Is L, The symbol of Number is No, Piece is PCS and so on.
- Formal Name: In the case of symbol L The Formal Name of L is Liter, No formal name number.
- Number of Decimal Places: Suppose you are selling milk 1.325 Liters, in this case the decimal places are three digits.One set decimal places, you can increase the decimal places to a higher number but cannot decrease to a lower number decimal places.
Here we are creating a simple unit of measure Liter, in three decimal places the screen will look like this.
Press enter key or use Shortcut Key Ctrl+A to save and create Unit ‘Liter’
Create Compound Units of Measurement.
Compound units are the combination of two units. In the above example assume that you are selling Milk. If you are selling Milk in bottles, like bottles of 200 Ml, Bottles of 500 Ml, and Bottles of 750 Ml etc. In such case you can create such units and fix rate for each type of Bottles.
The main advantages are that reports are available in both units, that IS IN Milliliter and in Bottle.The first step to create compound units is
Create Simple unit Bottle (Btl) and Milliliter (Ml) Using the simple unit creation screen as explained in the beginning.
Then Go to
Gateway of Tally>>Inventory Info>>Unit of Measure>>Create
Now we are in unit creation screen.
And the cursor is in Symbol Field, Press Back space, the cursor will move back to the field Type in which you can select compound unit.
Upon Selecting compound unit type, then the unit creation screen will change like below image.
In this screen you can see all the simple units we created earlier under option First Unit.
To create Bottle of 200 Ml
- Select the first Unit: Bottle
- Conversion: 200
- Second Unit: Ml
Press Enter and save the screen, now we have created Compound unit Bottle of 200 Ml
In the same manner you can create Bottle of 500 Ml, Just Type 500 Under conversion in the screen. See below image.
See the video of units of measure creation here