In TallyPrime, you can use the Material Out Voucher to record the issuance of stock items for consignment sales, where items are sent to a consignee but ownership remains with the consignor until the goods are sold.
The Material Out Voucher is ideal for tracking these transactions without affecting inventory ownership immediately.
Here’s a detailed guide with an example on how to record stock items for consignment sales using the Material Out Voucher in TallyPrime.
1. Steps to Issue Stock Items for Consignment Sales in TallyPrime:
1. Enable the Material Out Voucher
- Go to Gateway of Tally → F11: Features → Inventory Features.
- Set Use Material In and Out Voucher to Yes. This enables both Material In and Material Out Vouchers for stock transfers.
2. Create a Consignee Ledger
- Create a separate ledger for the consignee (the person or entity receiving the goods).
- Go to Gateway of Tally → Accounts Info → Ledgers → Create.
- Enter the following details:
- Name: Consignee name (e.g., ABC Stores).
- Under: Select Sundry Debtors or another relevant account group.
3. Record Material Out Voucher for Consignment
- Go to Gateway of Tally → Inventory Vouchers → Alt+F5: Material Out.
- In the Material Out Voucher screen, select the Consignee Ledger created above (e.g., ABC Stores).
- Enter details of the items being issued for consignment:
- Stock Item: Select the items being issued.
- Quantity: Enter the quantity being sent.
- Rate: Enter the item rate if applicable (this rate will be for reference as ownership is not yet transferred).
- TallyPrime will display the total value of items being issued, though this transaction will only reduce inventory quantities without affecting sales.
4. Example Scenario
Let’s assume you are sending 50 units of a stock item called Product X to ABC Stores for consignment sales, and each unit has a reference rate of ₹100. Here’s how the entry would look:
1. Select Consignee Ledger:
Choose ABC Stores in the Material Out Voucher.
2. Enter Stock Item Details:
- Stock Item: Product X
- Quantity: 50
- Rate: ₹100
- Amount: ₹5,000 (calculated automatically by TallyPrime)
3. Save the Voucher:
After verifying the details, press Enter to save.
5. Impact of Material Out Voucher on Inventory
- The Material Out Voucher reduces the inventory count for Product X by 50 units but does not impact the sales or income statements since the consignment sale is not yet confirmed.
- The items remain the property of the consignor (you) until sold by the consignee.
2. Benefits of Using Material Out Voucher for Consignment Sales in TallyPrime
1. Accurate Inventory Tracking:
Allows you to track items sent on consignment separately without affecting ownership records.
2. Reduced Manual Adjustments:
No need to adjust sales or revenue records manually until the consignee confirms sales.
3. Improved Consignment Management:
Enables easy tracking of consigned goods and facilitates efficient stock reconciliation once sales are reported.
By using the Material Out Voucher for consignment sales in TallyPrime, you can effectively manage and track inventory sent on consignment while awaiting the consignee’s sales confirmation.
This approach helps streamline inventory processes and maintains accurate records without prematurely recording sales revenue.
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