Tally.ERP 9 is India’s most popular business software. It is a complete product that offers comprehensive business functionalities such as Accounting, Finance, Inventory, Sales, Purchase, Point of Sales, Manufacturing, Costing, Job Costing, Payroll and Branch Management along with compliance capabilities for VAT, Excise, TDS, TCS, and GST.
With Tally.ERP 9, you can manage your purchases efficiently by creating purchase records, generating expense reports, and making updates to purchase records as and when needed.
Purchase Order Processing
When the order is placed with the suppliers for the supply of goods, the items, quantities, date of receipt, and so on, details are given with the Purchase Order Number. Later, when these goods are received, the Purchase Order is tracked for the Order Details either in the receipt note or in the purchase Invoice.
The Outstanding Purchase Order reports are available in Tally.ERP 9. It is possible to know the order position of any item in the Stock Summary. Separate Purchase Order Outstanding report and Purchase Order Summary report are also available.
Recording a Purchase Order
A purchase order is placed by a business entity with a supplier for the delivery of certain goods at a given price and time. Purchase order processing has to be enabled in order to create a purchase order.
To enable purchase order processing
- Go to Gateway of Tally > F11: Features > Inventory Features.
- Set Enable purchase order processing? to Yes.
- Press Ctrl+A to accept.
To create a purchase order
- Go to Gateway of Tally > Inventory Vouchers > Ctrl+F2 > F4: Purc. Order to view the Order Voucher Creation screen.
- Enter the Party’s A/c Name.
- Enter the Order No.
- Select the Name of Item from the List of Stock Items, or press Alt+C to create a new stock item.
- Enter the Quantity of the item, as required.
- Enter the Rate of the item. The Order Voucher Creation screen appears
- Press Ctrl+A to accept.
Now, you can send the purchase order for an item to your supplier.
Reorder Levels and Reorder Quantity
It is important that a business maintains sufficient stocks to meet customer needs, at any point of time. This also means that it is important not to accumulate stocks that don’t sell. Reorder level is the quantity of stock beyond which the stocks have to be replenished or By defining the Reorder levels and Reorder Quantities in Tally.ERP 9, you can ensure that you never run out of stocks.
To decide on reorder levels for stock items consider the following:
- The lead-time for suppliers to deliver the stock.
- The delivery time specified by the customer.
- The stock-in-hand to satisfy existing orders.
In simple mode, Tally.ERP 9 accepts the quantities that you want to specify. In advanced mode, it considers the previous consumption patterns to suggest reorder levels. However, you can define your own reorder levels. You can also specify the minimum quantity of the item to be ordered, either in simple or in advanced mode.
The purpose of specifying reorder levels is to obtain a report that indicates the quantity of a stock item that you must order.
To specify the Reorder Levels
- Go to Gateway of Tally > Inventory Info. > Reorder Levels.
- Select a group of stock items from the List of Groups.
- Enter the required Reorder Quantity and the Minimum Order Quantity of each stock item in the Specify Reorder Levels screen, as shown below:
- Press Enter to save.
To specify advanced reorder levels
- Go to Gateway of Tally > Inventory Info. > Reorder Levels.
- Select the stock group under the Reorder Levels menu. The Simple Reorder Levels screen appears.
- Click R: Adv Reorder to view the Advanced Parameters for Reorder Level.
- Enter the Period (type the number and select the period as required).
- Select the Criteria, as required. The Specify Reorder Levels screen appears as shown below:
- Click M: Adv Min Qty to view the Advance Minimum Order Quantities.
- Enter the Period (type the number and select the period as required).
- Select the Criteria, as required. The Specify Reorder Levels screen appears as shown below:
- Press Enter.
- Specify the advanced parameters for all stock items, if required.
- Press Enter.
- Press Enter to save.
Reorder Status and Quantities to Order
The Reorder Status report is a group-wise summary of the availability status of stock items. This report give us the number of purchase orders pending, sales orders pending, sales orders due, and thereby the net availability of the stock item. You can view the reorder level, the short fall in the stock item (calculated based on the net available stock and reorder Level) , if any, and the minimum order quantity. This report will help you decide the quantity of the stock item to be ordered based on the orders to be delivered, and stock-in-hand.
To view the Reorder Status
- Go to Gateway of Tally > Display > Statements of Inventory > Reorder Status.
- Select a Group.
- The Inventory Reorder Status report appears
