At Zero Cost costing in TallyPrime: 3 Easy Steps + Example

At Zero Cost costing in TallyPrime refers to recording the receipt of materials without attributing any cost to them.

This scenario typically arises when materials are received free of charge or when costing is not required.

1. How to Record At Zero Cost in TallyPrime:

1. Create a Stock Item:

• Go to Inventory Info > Stock Items > Create.
• Enter the details of the stock item.

2. Create a Voucher:

• Go to Accounting Vouchers or Inventory Vouchers.
• Select a purchase or receipt voucher.
• Enter the quantity and set the rate as 0.

3. Save the Voucher:

The stock will be recorded with a value of zero.

2. Example: Donation of Units

Scenario: A supplier donates 50 units of packaging material.

• Stock Item: Packaging Material
• Quantity: 50 units
• Rate: ₹0

When you record this in TallyPrime, the inventory increases by 50 units, but the cost remains zero.

3. Benefits of Zero Cost Costing in TallyPrime:

• Accurate Inventory Tracking: Ensures that your inventory levels are accurate without inflating costs.
• Compliance: Useful in scenarios where materials are received as samples or donations.

4. Conclusion

At Zero Cost costing in TallyPrime allows businesses to accurately track inventory received without cost implications, maintaining accurate stock records while ensuring that financial records are not overstated.

This feature is especially beneficial in scenarios involving donations, samples, or promotional items.