Additional Cost of Purchase on Stock Items in TallyPrime: 4 Steps

TallyPrime allows you to record and allocate additional costs incurred during the purchase of stock items, such as freight, customs duty, or insurance.

Allocating these costs ensures that the accurate landed cost of the stock items is recorded, helping in proper valuation and decision-making.

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1. Benefits of Allocating Additional Costs of Purchase on Stock Items in TallyPrime

1. Accurate Inventory Valuation:

Captures the true cost of goods, including associated expenses.

2. Better Profitability Analysis:

Tracks real input costs for margin analysis.

3. Improved Reporting:

Ensures compliance with accounting and audit requirements.

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2. Steps to Record Additional Costs of Purchase on Stock Items in TallyPrime

Step 1: Enable Features

1. Navigate to Gateway of Tally → F11: Features → Inventory Features.
2. Enable Track Additional Costs of Purchase.

Step 2: Record a Purchase Voucher

1. Go to Gateway of Tally → Vouchers → F9: Purchase.
2. Enter the details:
   • Supplier Ledger: Select the supplier from whom the purchase was made.
   • Stock Item: Choose the stock items being purchased.
   • Quantity and Rate: Enter the quantity and rate per unit.
3. Save the purchase voucher.

Step 3: Record Additional Costs

1. After saving the purchase voucher, TallyPrime prompts for additional costs.
2. Enter the expenses incurred:
   • Freight charges, customs duties, etc., and allocate them to specific stock items or all items proportionally.
3. Specify the nature of the expense using appropriate ledgers.

Step 4: View Landed Cost

1. Navigate to Gateway of Tally → Stock Summary or Item Analysis.
2. View the updated cost of stock items, including additional costs.

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3. Example: Recording Additional Costs of Purchase on Stock Items in TallyPrime

Scenario:
ABC Traders purchased 100 units of “Mobile Phones” from XYZ Suppliers at ₹15,000 each.

Additional costs incurred were ₹5,000 for freight and ₹2,000 for insurance.

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Step 1: Record the Purchase Voucher

1. Go to Vouchers → F9: Purchase.
2. Details:
   • Supplier: XYZ Suppliers.
   • Stock Item: Mobile Phones.
   • Quantity: 100.
   • Rate: ₹15,000.
3. Save the voucher.

Step 2: Record Additional Costs

1. TallyPrime prompts for additional costs.
2. Enter:
   • Freight: ₹5,000.
   • Insurance: ₹2,000.
3. Allocate costs:
   • Proportionately distribute these expenses across the stock items or manually allocate them.

Step 3: Check Landed Cost

1. Navigate to Stock Summary.
2. The landed cost per mobile phone is now updated to include additional costs:
   • Original Cost: ₹15,000.
   • Additional Costs (₹7,000 ÷ 100): ₹70 per unit.
   • Total Landed Cost: ₹15,070 per unit.

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Conclusion

Recording additional costs of purchase in TallyPrime ensures that the true landed cost of goods is captured.

This feature is vital for businesses managing inventory as it provides accurate costing data, helping in pricing, profitability analysis, and inventory valuation.