7 Inventory Vouchers in Tally Prime — Detailed Steps & Examples

Tally Prime provides several inventory vouchers for tracking the movement of goods from purchase to sale, physical verification, and stock adjustments. This section explains each voucher type, how to enable it, how to record transactions, and provides real-world examples.

7.1 Enabling Inventory Vouchers

Before using inventory vouchers, enable the features:

  1. Open Tally Prime
  2. Press F11 → Inventory Features
  3. Set the following to Yes:
    • Enable Purchase Order Processing
    • Enable Sales Order Processing
    • Enable Material In & Out
    • Enable Delivery & Receipt Notes
    • Enable Rejection In & Out
    • Enable Stock Journal
    • Enable Physical Stock
  4. Press Ctrl + A to save.

7.2 Purchase Order (PO)

A Purchase Order is issued to a supplier to request goods.

Steps:

  1. Go to Gateway of Tally → Vouchers
  2. Press Alt + F4 for Purchase Order
  3. Select Supplier Name
  4. Enter Order No. (auto/manual)
  5. Enter Stock Item, Quantity, Rate, and Amount
  6. Press Ctrl + A to save

Example:
- Supplier: ABC Traders
- Item: T-Shirt – M – Red
- Qty: 100
- Rate: ₹200
- Amount: ₹20,000

7.3 Sales Order

A Sales Order confirms a customer’s order.

Steps:

  1. Gateway of Tally → Vouchers
  2. Press Alt + F5 for Sales Order
  3. Select Customer Name
  4. Enter Order No.
  5. Enter Stock Item, Quantity, Rate
  6. Save Ctrl + A

Example:
- Customer: RK Stores
- Item: T-Shirt – L – Blue
- Qty: 20
- Rate: ₹250
- Amount: ₹5,000

7.4 Material In

Used when material arrives at the warehouse without a Purchase Order or purchase details (job work, free samples).

Steps:

  1. Vouchers → Material In (Alt + W)
  2. Choose Party (optional)
  3. Enter Stock Item, Quantity, etc.
  4. Save Ctrl + A

Example:
50 units of Flour received for job work (no purchase invoice)

7.5 Material Out

Used for sending material out without a sale (samples, job work, testing).

Steps:

  1. Vouchers → Material Out (Alt + W)
  2. Select Party (optional)
  3. Enter items & quantity
  4. Save

Example:
Sending 10 T-shirts to a printing vendor for logo printing; no sale entry involved.

7.6 Receipt Note

Used when goods are physically received before recording a Purchase Voucher.

Steps:

  1. Vouchers → Alt + F9 → Receipt Note
  2. Select Supplier
  3. Enter Item, Qty, Rejection Qty (if any), Rate
  4. Save

Example:
- Supplier sends goods first; invoice not yet received
- Received: 100 T-Shirts
- This increases stock, but does not affect accounts until the purchase voucher is entered.

7.7 Delivery Note

Used when goods are delivered before a Sales Invoice is issued.

Steps:

  1. Vouchers → Alt + F8 → Delivery Note
  2. Select Customer
  3. Enter Item, Quantity, Tracking details
  4. Save

Example:
- Customer collects goods before invoice
- Delivered: 30 T-Shirts
- Stock reduces, but accounts aren’t updated until Sales Voucher is passed.

7.8 Rejection In

Records goods returned into stock by customer (sales return) or by internal rejection.

Steps:

  1. Vouchers → Rejection In (Ctrl + F6)
  2. Choose Customer/Party
  3. Enter Item, Quantity returned
  4. Save

Example:
Customer returns 5 defective T-shirts. Increases stock; does not adjust ledgers unless mapped with a credit note.

7.9 Rejection Out

Used when you send goods back to supplier (purchase return).

Steps:

  1. Vouchers → Rejection Out
  2. Select Supplier
  3. Enter Item, Quantity
  4. Save

Example:
8 T-Shirts returned to supplier due to damage; this decreases stock.

7.10 Stock Journal

For stock adjustments, inter-godown transfers, or production (Raw materials → Finished Goods).

Steps:

  1. Gateway of Tally → Vouchers → F7 (Stock Journal)
  2. Two sections:
    • Source (Consumption)
    • Destination (Production)
  3. Enter Items consumed and produced
  4. Save

Example 1 — Adjustment:
Reduce 5 damaged T-shirts (Consumption only)

Example 2 — Production:
2 kg Flour (Source) → 1 kg Dough (Destination)

7.11 Physical Stock Voucher

During stock verification, if physical stock ≠ book stock.

Steps:

  1. Vouchers → Inventory Vouchers → Physical Stock
  2. Enter:
    • Stock Item
    • Actual Physical Quantity
  3. Save

Tally automatically adjusts differences.

Example:
Book stock of T-Shirts: 120
Physical count: 118
Voucher updates the difference.

7.12 Summary Table

Voucher Type Purpose
Purchase Order Ordering goods from supplier
Sales Order Customer orders received
Material In Stock received without invoice
Material Out Stock sent without sale
Receipt Note Goods received before invoice
Delivery Note Goods delivered before invoice
Rejection In Sales return or internal rejection
Rejection Out Purchase return
Stock Journal Stock adjustment, production
Physical Stock Physical verification adjustments

7.13 Illustration

  • April 1: Issued a Purchase Order (PO/001) to Textile Hub for 500 units of “Cotton Fabric” at ₹150/meter.
  • April 5: Received 480 meters of “Cotton Fabric” from Textile Hub against PO/001. A Receipt Note (RN/001) was generated.
  • April 7: Found 10 meters of fabric damaged and sent them back to the supplier using a Rejection Out voucher.
  • April 10: Received a Sales Order (SO/001) from Fashion House for 100 “Finished Shirts” at ₹800/unit.
  • April 12: Transferred 100 meters of “Cotton Fabric” from the “Main Warehouse” to the “Production Godown” using a Stock Journal for shirt manufacturing.
  • April 15: Delivered 100 “Finished Shirts” to Fashion House via Delivery Note (DN/001).
  • April 18: Fashion House returned 2 shirts due to size issues. Recorded a Rejection In.
  • April 30: Performed a month-end audit. The book stock for “Cotton Fabric” showed 370 meters, but the actual count was 368 meters. Recorded a Physical Stock Voucher.

7.14 Solution: Step-by-Step Recording in Tally Prime

Step 1: Enable Features (F11)

Go to F11 (Features) and set the following to Yes:

  • Enable Purchase Order Processing

  • Enable Sales Order Processing

  • Maintain Multiple Godowns

Step 2: Recording Transactions

Date Voucher Type Shortcut Entry Details
Apr 1 Purchase Order Ctrl + F9 Party: Textile Hub. Order No: PO/001. Item: Cotton Fabric, 500m @ ₹150.
Apr 5 Receipt Note Alt + F9 Party: Textile Hub. Tracking No: RN/001. Order No: PO/001. Item: Cotton Fabric, 480m.
Apr 7 Rejection Out Ctrl + F5 Ledger: Textile Hub. Item: Cotton Fabric. Qty: 10m.
Apr 10 Sales Order Ctrl + F8 Party: Fashion House. Order No: SO/001. Item: Finished Shirts, 100 units @ ₹800.
Apr 12 Stock Journal Alt + F7 Source: Main Warehouse (100m). Destination: Production Godown (100m).
Apr 15 Delivery Note Alt + F8 Party: Fashion House. Tracking No: DN/001. Order No: SO/001. Item: Finished Shirts, 100 units.
Apr 18 Rejection In Ctrl + F6 Ledger: Fashion House. Item: Finished Shirts. Qty: 2 units.
Apr 30 Physical Stock Ctrl + F10 Item: Cotton Fabric. Godown: Main Warehouse. Actual Qty: 368m.

Step 3: Final Stock Position Result

After recording these entries, the Stock Summary will automatically reflect:

Cotton Fabric * Initial Receipt: 480m * Rejection Out: -10m * Transfer to Production: -100m * Physical Adjustment: -2m (to match 368m count) * Final Balance: 368 meters

Finished Shirts * Delivery to Customer: 100 units (out) * Rejection In: 2 units (in) * Final Balance: -98 units (Note: Shows negative balance assuming zero opening stock and no manufacturing entry).

7.15 Key Reports to Review

  1. Stock Summary: To see current quantities of items across different godowns.
  2. Purchase Order Summary: To track the 20m of fabric never received from the original order.
  3. Sales Order Summary: To monitor outstanding orders that have not yet been converted to invoices.