Reorder Levels & Minimum Reorder Quantity in TallyPrime: 5 Steps

• Reorder Level: The minimum quantity of a stock item that triggers a purchase order to replenish the stock.
• Minimum Reorder Quantity: The minimum quantity that should be ordered when a reorder level is reached.

1. Configuring Reorder Levels and Minimum Reorder Quantities in TallyPrime:

Step 1: Enable Reorder Feature in TallyPrime

Before setting reorder levels, ensure that the feature is activated in TallyPrime.

Steps:

1. Open TallyPrime and navigate to the Gateway of Tally.
2. Press F11 (Features) to open the Company Features menu.
3. Select Inventory Features.
4. Set Maintain Reorder Levels to Yes.
5. Press Enter to accept and save the settings.

1. Example of Enabling Reorder Feature in TallyPrime:

A manufacturing company wants to monitor its inventory levels closely.

By enabling the reorder feature, they can set specific thresholds for each raw material to ensure uninterrupted production.

Step 2: Define Reorder Levels and Minimum Reorder Quantities for Stock Items

After enabling the feature, specify the reorder levels and minimum reorder quantities for individual stock items.

Steps:

1. From the Gateway of Tally, go to Inventory Info > Stock Items > Alter (or Create if adding new items).
2. Select the Stock Item you want to configure.
3. In the Reorder Details section, enter the following information:
   • Godown: Select the location if multiple godowns are maintained.
   • Reorder Level: Enter the quantity at which you want to reorder the item.
   • Minimum Order Quantity: Enter the minimum quantity to be ordered when reorder level is reached.
4. Press Enter to save the configuration.

2. Example to Define Reorder Levels and Minimum Reorder Quantities for Stock Items in TallyPrime:

• Stock Item: LED Bulb 10W
  • Reorder Level: 500 units
  • Minimum Order Quantity: 1000 units
• Explanation: When the stock of LED Bulb 10W drops to 500 units, TallyPrime will indicate that it’s time to place a new order for at least 1000 units to replenish the stock adequately.

2. Additional Considerations:

1. Lead Time:

Consider the lead time required to receive the stock item after placing an order. Set the reorder level accordingly to avoid stockouts.

2. Safety Stock:

If you want to maintain a safety stock to account for uncertainties, adjust the reorder level accordingly.

3. Demand Forecasting:

Use demand forecasting techniques to accurately estimate the reorder level based on historical usage data.

3. Benefits of Setting Reorder Levels in TallyPrime:

• Avoid Stockouts: Ensures that you have sufficient stock to meet demand.
• Optimize Inventory: Helps maintain optimal inventory levels, reducing carrying costs.
• Efficient Procurement: Triggers timely purchase orders to replenish stock.

By following these steps and considering the additional factors, you can effectively set reorder levels and minimum reorder quantities in TallyPrime to optimize your inventory management.