Configure Stock Items for Cost Tracking in TallyPrime: 5 Steps

Configuring stock items for cost tracking in TallyPrime enables detailed tracking of costs associated with specific stock items, which is crucial for accurate financial reporting and inventory management.

Here’s how to configure stock items for cost tracking in TallyPrime:

Table of Contents

1. Steps to Configure Stock Items for Cost Tracking in TallyPrime:

1. Open TallyPrime:

Navigate to the Gateway of Tally.

2. Activate Cost Tracking:

Go to F11: Features > Inventory Features.
Enable the option Use Tracking Numbers (Delivery/Receipt Notes).
Enable Track Additional Costs of Purchase if you need to track extra costs like freight or customs duty.

3. Create or Alter Stock Items:

Navigate to Inventory Info > Stock Items > Create/Alter.
Select the stock item you want to configure or create a new one.

4. Set Cost Tracking Details:

In the stock item creation or alteration screen, under the Cost Tracking section:

Choose the appropriate Cost Category if you have multiple cost categories.
Specify the Cost Centre to associate the cost with specific departments, projects, or branches.

5. Enter Transactions:

When entering purchase or sales vouchers, you can now assign tracking numbers to stock items, linking them to specific costs.
Additional costs (e.g., transportation) can also be allocated to stock items using the same tracking number.

2. Example: Configure Stock Items for Cost Tracking in TallyPrime

A business purchases raw materials and incurs additional costs like transportation and handling.

By enabling cost tracking, the business can assign these additional costs directly to the raw material stock items using tracking numbers.

This ensures that the total cost of the raw materials reflects all associated expenses.

3. Conclusion:

Configuring stock items for cost tracking in TallyPrime is essential for businesses that need detailed cost analysis.

It allows you to monitor and allocate all costs associated with inventory items accurately, leading to more precise financial reporting and better decision-making regarding pricing, profitability, and inventory management.