Tally ERP 9 Inventory Feature: A Complete Guide

Inventory management is the go-to feature of Tally that will help MSMEs to manage their inventory robustly. Through the Tally ERP 9 Inventory feature, businesses can maintain a track record of each aspect of product inventory. It will ensure the integrity of the product quantity and sales record. Auditing the KPIs of sales is merely matching the data from the ERP to recorded numbers by the teams — it makes business processes efficient. Moreover, it will result in better transparency of your books which will create a better culture in your organization. Likewise, you can ensure better decision-making with this feature because you have an automated system for maintaining a track record of inventory. Creating MoM growth statistics would be a cakewalk because you can access the historical data instantly. Also, it will make sure you have real-time reporting for all the inventory statistics.

Why Inventory Management is Necessary for the Organization

A lack of inventory management system will affect your supply chain management — resulting in poor business and cash flow. Along with that, subsequently, it will result in demand and supply issues in your organization. Thus, with platforms like CredFlow, you can significantly improve your cash flow and streamline your account receivables. 

How to Use Tally ERP 9 Inventory Feature

So to use the inventory management feature of Tally, you need to follow some steps to use this feature at its maximum potential.  

  • Step 1: Go to the gateway of Tally, and click on the features.
  • Step 2: Allow the inventory feature on this screen. 
  • Step 3: A list of inventory operation features will show on a new screen. You can set their parameters at your convenience. 

Processes of the Inventory Management Feature

Tally ERP 9 identified some vital processes that are critical for inventory management. So, through some use-case scenarios of inventory management features that will uplift your management operations and improve decision-making. 

  • General Purpose: It is a simple use-case scenario for everyday operations regarding maintaining your inventory entries in Tally ERP 9. 
  • Zero-valued transactions: With this option, you can enable zero-value transactions that can appear in stock registers. 
  • Books for accounts and inventory: Get a complete total of products on a particular date — enable “separate and integrate books for accounts and inventory.” Although, it will bring accounts and inventory to the same book. 
  • Storage and Classification of Goods: As storage insights and maintaining the classification of your product is a critical process. So in Tally ERP 9, you can customize these features — businesses can perform these operations per the standard operating procedure.
  • Batch-wise details of inventory items: Track your inventory consumption; batch-wise by enabling the “Prepare Batch-wise details of Inventory items” feature. 
  • Inventory Management for multiple locations: For managing goods at various locations, enable this option “inventory at multiple godowns locations.” 
  • Stock categorization: Create stock categories with the help of this sub-option. Enable the “Option to show different Stock Categories.”
  • Invoicing of stock items: 
  • Invoicing of stock items: If you want to create the sales and purchase orders for the invoice, items enable the option “Invoice Options.”
  • Credit and Debit Notes in the Invoice: You can incorporate 

Several use case scenarios and feature enablement are present in the Tally ERP’s documentation. 


The inventory feature in Tally ERP 9 is necessary for small businesses if they want to manage their business processes efficiently. Thus, having robust inventory management software is essential to grow your cash flow and working capital.  

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