How to Create a Stock Item in TallyPrime: 5 Easy Steps

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Table of Contents

1. Access the Stock Item Creation screen:

Method 1:
- Go to Gateway of Tally > Create > type or select Stock Item > Enter.
Method 2:
- Go to Gateway of Tally > Alt+G (Go To) > Create Master > type or select Stock Item > Enter.

Name: Enter a descriptive name for the stock item.
Under: Select the appropriate stock group to categorize the item. If a suitable group doesn’t exist, create one on the fly by pressing Alt+C.
Units: Choose the unit of measurement for the item (e.g., pieces, kilograms, liters).

Is VAT/Excise Applicable: Enable this option if the item is subject to VAT or Excise duty.
Set/Alter VAT/Excise Details: Configure the specific tax rates and codes as required.
MRP: Enter the Maximum Retail Price (MRP) of the item, if applicable.

Type of Stock Item: Select the appropriate type (e.g., Raw Material, Finished Goods, Consumable).
Conversion Factor: Enter the conversion factor if the item is sold in multiple units (e.g., 1 box = 10 pieces).
Is inclusive of duties and taxes: Enable this option if the price includes taxes.
Opening Balance: Enter the opening stock quantity and value, if applicable.

Creating stock groups: Stock groups help organize items logically. You can create them on the fly during stock item creation or separately by going to Gateway of Tally > Create > Stock Group.
Default units of measure: TallyPrime comes with predefined units of measure. You can add new units if needed.
Stock categories: Stock categories can be used to further classify items within groups.
Batch-wise tracking: TallyPrime supports batch-wise tracking of stock items for enhanced inventory control.
Inventory valuation methods: Choose the appropriate inventory valuation method (e.g., FIFO, LIFO, Weighted Average) based on your accounting needs.
MRP based on state: If you operate in multiple states with different tax rates, you can set MRP applicable for specific states.