Consume Stock from Godowns Created for Third Party in TallyPrime

TallyPrime doesn’t offer a direct “consume stock” option for third-party godowns.

However, you can effectively track “consumption” (sales) of stock entrusted to third parties by leveraging the Sales Voucher functionality with a specific allocation method.

Here’s how it works:

Scenario: You manage inventory sent on consignment to “ABC Electronics” in a dedicated godown named “ABC Electronics Consignment.”

When “ABC Electronics” sells an item from your consignment stock, you need to record this “consumption” (sale) in TallyPrime.

1. Recording Consumption (Sale) from Third-Party Godown in TallyPrime:

1. Sales Voucher (Alt+F8): Create a Sales Voucher as usual.
2. Customer Selection: Select “ABC Electronics” as the customer for this sale.
3. Item Selection: Add the item(s) that were sold by “ABC Electronics” from your consignment stock.
4. Stock Allocation Screen: This is the crucial step for recording consumption from the third-party godown. In the “Stock Item Allocations” screen within the Sales Voucher:
   • Choose Godown: Don’t select your main stock location. Instead, choose the dedicated godown created for the third party, in this case, “ABC Electronics Consignment.”

1. Example:

“ABC Electronics” sells 2 units of “Laptops (i7 Processor)” from your consignment stock.

• Create a Sales Voucher with “ABC Electronics” as the customer and “Laptops (i7 Processor)” as the item.
• In the “Stock Item Allocations” screen, ensure “ABC Electronics Consignment” is selected as the godown from which the stock was sold.

2. Impact of Stock Allocation when You Record Consumption (Sale) from Third-Party Godown in Tally:

By selecting the “ABC Electronics Consignment” godown during stock allocation, you achieve two key things:

1. Tracks Consumption:

This records the sale as a deduction from the inventory held within the “ABC Electronics Consignment” godown, effectively reflecting the consumption (sale) by the third party.

2. Maintains Separate Records:

The sale doesn’t affect your main stock inventory. It’s solely linked to the dedicated godown for “ABC Electronics,” ensuring separate tracking of your own stock and that entrusted to the third party.

3. Benefits of This Approach:

1. Accurate Inventory Tracking:

Tracks sales from third-party stock accurately, maintaining a clear picture of your inventory entrusted to external parties.

2. Improved Reporting:

Sales linked to the dedicated third-party godown allow for generating reports that differentiate your sales and inventory levels from those of the third party.

3. Enhanced Control:

Provides better control over your consignment stock by reflecting consumption (sales) within the designated godown.

4. Additional Considerations:

• Remember to reconcile your records with the third party periodically to ensure accuracy and match sales data.
• You can utilize reports like Godown Summary or Stock Enquiry (explained earlier) to analyze the movement and status of stock held by third parties.

By effectively utilizing the Sales Voucher with proper stock allocation, you can efficiently track “consumption” (sales) of inventory entrusted to third parties in TallyPrime.

This approach empowers you with accurate data, improved reporting capabilities, and ultimately, enhanced control over your inventory management practices.