Chapter 5

Accounting Applications in Computer

inventory management

Course: Accounting in Pharmacy Merchandizing

Course Code: BSPH2106
Specialization: Pharmacy
 Contents

 Create and maintain Inventory Masters in Tally Prime

 Create and maintain stock details in Tally Prime
 Create stock items and enter opening balances in Tally Prime
 Manage inventory batch-wise in Tally Prime
 MODULE 5
•Module Objectives
•When you have completed this Module, you will be able to:
 The basic functions of the Tally PRIME Inventory System
 Creating and maintaining Inventory Masters
 Creating and maintaining stock details
 Creating stock items and entering opening balances
 Inventory ACCOUNTING

• Inventory accounting includes recording of stock details like the

purchase of stock, the sale of stock, stock movement between storage
locations or godowns and providing information on stock availability.
Tally Prime makes it possible to integrate the inventory and
accounting systems so that the financial statements reflect the closing
stock value from the Inventory system. The inventory system operates
in much the same way as the accounting system. 1. First you set up
the inventory details, which is a similar operation to creating the chart
of accounts although, in this case, there are no pre-defined set of
stock groups. 2. Second, you create the individual stock items, which
is similar to setting up the ledgers
INVENTORY INFORMATION
The Inventory Info menu, lists the inventory masters like Stock Group, Stock Items, Units of Measure of the
company, using which you can create, alter and display the inventory master details.
Before you start entering inventory information, ‘Maintain Inventory’ option under company features (F11)
should be changed to YES
 STOCK GROUPS
Stock Groups are provided to help in the classification of stock items. Classification is done based on some common behavior. Grouping
stock items makes it easy to identify and report them in the statements.
Let us consider the following example for creating Inventory information in Tally Prime

• Creating Stock Group

Create Surgical equipment under Medical Equipment
•The screen is displayed as shown below:

• 
•Press Y or Enter to accept the screen.

•Also create Cooking Range under Home Appliances, Audio under Music Systems and television Under Music
Systems.
 STOCK CATEGORIES
This is a feature, which offers a parallel classification of stock items. Like Stock Groups, Stock categories are also
classified based on some similar behavior. The advantage of using Tally Prime lies in categorizing Stock items
together, (based on functionality) across different stock groups.

• Creating Single Stock Category

 STOCK CATEGORIES

• Creating Multiple Stock Category

 LOCATIONS
A place where stock items are stored is referred to as Location. You can specify where the stock items are kept. For example: A
warehouse, shelf or rack etc, and obtain stock reports for each Location and account for the movement of stock between locations.

• Creating a Location :
 UNITS OF MEASURE
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units.
In such cases, it is necessary to create the Unit of Measure. The Units of Measure can either be simple or
compound. Examples of simple units are nos., meters, kilograms, pieces etc. Examples for compound units are
a box of 10 pieces etc. Create the Units of Measure before creating the Stock Items.
• Creating Simple Units of Measure: Creating Compound Units of Measure:
UNITS OF MEASURE
• Ensure that the screen appears as shown below:

• Simple Compound
 STOCK ITEMS
Stock items are goods that you manufacture or trade (sell and purchase). It is the primary inventory entity. Stock Items in the Inventory
transactions are like ledgers being used in accounting transactions. Therefore, Stock Items are important in an inventory just as ledgers are
important in accounting.

• Creating a Single Stock Item Creating a Multiple Stock Item

 STOCK ITEMS
•Enter the following details:
•Name: The name of the stock item.
•Under: The stock group under which you want to classify
the stock item.
•Category: The stock category you want to classify the
stock item for parallel classification.
•Units: The unit of measure for the stock item being
created.
•Use expiry Date: This will keep the update on the expiry
of the inventory
•Rate of Duty: Enter the rate of duty charged on the item.

•Opening Balance: The opening balance of a stock item,

refers to the stock available with us. Godowns that have
already been created, must have the opening balance
quantity and the location specified.
 STOCK ITEMS
• You need to enter the total quantity in all the
locations. After entering the total quantity, the
quantity in each location can be entered.
• Manufacturing date and Expiry date should be
mentioned to follow up the inventories.

GENERATING STOCK SUMMARY REPORT

•The Stock summary report can be generated be

selecting Stock Summary from gateway of Tally.
Then Select F5 to get report Stock Item Wise and
also select ALT+F5 for detailed.
 Exercise (1):
Muscat Pharmacy Muscat Pharmacy Cost per Unit
Stock Category Units
(Seeb) (Hail) (OMR)

Medical Equipment
Surgical Equipment
Scalpels A. Titan Instruments (1) Boxes 30 60 10
scissors Boston Scientific. Boxes 288 192 15
Suction Atmos Medizintechnik Pcs 10 9 700
saws Aesculap® (1) Boxes 180 120 25

Over-the-Counter Medication

®
acetaminophen Tylenol Packs 70 50 8

laxatives CVS Health. Packs 9

aspirin Ascriptin. Packs 110 130 12
antacids Aluminum hydroxide gel. Nos 150 140 13
 Exercise (2):

Muscat Pharmacy Muscat Pharmacy Cost per Unit

Stock Category Units
(Seeb) (Hail) (OMR)

Supplements

Vitamins
Multivitamins Thorne. Bottles 60 170 3.5
Vitamin D Drisdol Bottles 30 60 6
Minerals
Nature's Bounty
Magnesium Bottles 40 160 5
Magnesium.
Calcium Thorne Oscap Packs 34 50 4
Botanicals or herbs
echinacea  Herb Pharm Echinacea Bottles 25 30 3

Prescription Medication

Atorvastatin Lipitor Packs 70 50 1.2

Lisinopril  Prinivil Packs 160 2.4
Amoxicillin Amoxil Packs 110 130 3.5
Losartan. Losartan Packs 150 140 4
 CONTACT INFORMATION:

Name of the Staff : Ms. Reem Ibrahim Al Farsi

Office:: BS 043
Email: reem.alfarsi@hct.edu.om

VERSION HISTORY

Version No Date Approved Changes incorporated

01 Sem. (I) 2022/2023 November 9th , 2022

18