Physical Stock Verification in TallyPrime: 5 Easy Steps + Example

In TallyPrime, physical stock verification refers to the process of manually counting your actual inventory on hand and comparing it to the stock levels recorded in your accounting software.

This helps identify any discrepancies between the physical stock and the book stock (system records).

TallyPrime provides a Physical Stock Voucher to record the results of your physical stock verification.

Here’s a detailed explanation with an example:

1. Physical Stock Verification Process:

1. Conduct Physical Stock Count:

• Manually count the quantity of each stock item you have on hand across all your storage locations (godowns).
• Ensure proper documentation of the counted quantities for each item.

2. Record Physical Stock in TallyPrime:

• Open the Gateway of TallyPrime (usually Alt+F12).
• Navigate to “Vouchers” and select “Physical Stock” (or press Ctrl+F7).

1. Alternative Method (Optional):

- Press `Alt+G` (Go To) and choose "Create Voucher" followed by "Physical Stock."

3.Stock Verification Date:

• Enter the date on which you conducted the physical stock count.

4. Stock Item Details:

• Select the stock item for which you want to record the physical count.
• Enter the physical stock quantity you counted for the selected item.

5. Godown (Optional):

• If you maintain stock in multiple locations (godowns), select the specific godown where you counted the current item.

6. Batch Details (Optional):

• If you track inventory using batch numbers, select the relevant batch for the counted stock (applicable only if enabled in the stock item master).

7. Record for Multiple Items:

• Repeat steps 4-6 for each stock item you want to record the physical count for.

8. Post-Dated Entry:

• Physical Stock vouchers are typically post-dated entries.
• This means the effective date of the voucher is set to the future date when the physical count was conducted.
• You can usually define the post-date while saving the voucher (check TallyPrime settings if needed).

9. Save the Voucher:

• Once you’ve entered the details for all counted items, press Ctrl+A to save the Physical Stock voucher.
• This records the physical stock quantities in TallyPrime.

2. Example: Verifying Inventory in a Warehouse

1. Scenario:

You conduct a physical inventory count in your warehouse on May 7, 2024. You find the following:

• 100 Pencils (Book Stock: 105)
• 50 Notebooks (Book Stock: 50)
• 20 Staplers (Book Stock: 15)

2. Steps:

Follow the steps mentioned above to access the Physical Stock voucher.

1. Stock Verification Date:

• Enter “07-May-2024” as the date.

2. Record for Each Item:

• For Pencils: Enter “100” as the physical stock quantity.
• For Notebooks: Enter “50” as the physical stock quantity.
• For Staplers: Enter “20” as the physical stock quantity.

3. Save the Voucher:

• Press Ctrl+A to save the Physical Stock voucher, recording your verified inventory counts.

3. Benefits of Physical Stock Verification in TallyPrime:

1. Improved Inventory Accuracy:

Identifies discrepancies between book stock and physical stock, allowing for adjustments and maintaining accurate inventory records.

2. Reduced Inventory Loss:

Helps detect potential stock shrinkage or theft, enabling better inventory control measures.

3. Enhanced Reporting:

Provides a basis for generating reports reflecting the actual stock on hand, leading to more informed decision-making.

4. Additional Considerations about Physical Stock Verification in TallyPrime:

• It’s recommended to conduct physical stock verification periodically (e.g., monthly, quarterly, or annually) depending on your inventory turnover and risk factors.
• You can utilize features like barcode scanners to expedite the physical counting process and improve data accuracy.
• After recording the physical stock, TallyPrime allows you to generate reports comparing the book stock and physical stock, helping you analyze discrepancies.
• These reports might be named “Physical Stock Register” or “Verification of Stock Items” depending on your TallyPrime configuration.

5. In Conclusion:

Physical stock verification is a crucial process for maintaining accurate inventory records in TallyPrime.

By conducting regular stock counts and recording the results in Physical Stock vouchers, you can ensure data integrity, identify potential issues, and make informed decisions regarding your inventory management.