Top 5 Inventory Management Features in Tally

Managing inventory efficiently is essential for any business. Tally software not only simplifies accounting but also provides powerful inventory management features that streamline stock control. In this blog, we explore the top five inventory management features in Tally and how you can leverage them to optimize your operations.

1. Inventory Classification

Tally allows businesses to classify inventory with stock groups, categories, batches, and storage locations (Godowns). This feature ensures organized stock management, enabling businesses to track, sort, and filter items easily.

How to Use It in Tally:

• Navigate to Gateway of Tally
• Select Alter under Masters
• Choose Stock Groups, Categories, or Batches under Inventory Masters
• Click Create to define inventory groups

2. Units of Measure

Handling products with different measurement units can be challenging. Tally’s “Units of Measure” feature allows businesses to manage stock in multiple units, ensuring seamless purchase and sales transactions.

How to Use It in Tally:

• Navigate to Gateway of Tally
• Select Alter under Masters
• Click Show More and select Unit under Inventory Masters
• Click Create and define unit conversions

3. Reorder Level Management

To avoid stock shortages, Tally includes a reorder level feature that helps businesses set minimum stock levels. This ensures that businesses always have sufficient inventory to meet demand.

How to Use It in Tally:

• Navigate to Gateway of Tally
• Select Alter under Masters
• Click Show More and select Reorder Level under Inventory Masters
• Enable Reorder Level and set minimum stock levels

4. Batch Tracking & Expiry Management

For businesses dealing with perishable goods or batch-wise inventory, Tally allows tracking manufacturing dates, expiry dates, and stock movements.

How to Use It in Tally:

• Navigate to Gateway of Tally
• Select Alter under Masters
• Choose Stock Item under Inventory Masters
• Enable Batch-Wise Details and define expiry dates

5. Bill of Materials (BOM)

Manufacturing businesses benefit from Tally’s Bill of Materials (BOM) feature, which helps define raw materials, components, and quantities required for production.

How to Use It in Tally:

• Navigate to Gateway of Tally
• Select Alter under Masters
• Choose Stock Item under Inventory Masters
• Enable Bill of Materials and define components

Final Words

With these features, Tally streamlines inventory management, helping businesses make data-driven decisions. For deeper analysis and custom reporting, integrating a BI tool like EasyReports can further enhance efficiency and accuracy.