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Creation/Alternation/Deleting of Stock Units of Measure in TallyPrime

The main concept of Trading activities are receipt of goods and delivery of goods. We generally call them PURCHASE or SALE  activities. The trading items can be RAW MATERIAL, FINISHED GOODS, SEMI-FINISHED GOODS, etc. For better Organization you can use the group and sub-group for classification of the trading item.

Inventory Master from Chart of Accounts :

  • Gateway of Tally > Chart of Accounts

You can create the inventory from this menu, which contains the following options :

  • Stock  Group : Create your group here, for example, Raw Materials, Work-in-progress, Finished Goods, etc.
  • Stock Items : Create your Stock Items here, for example, TV, Sound System, VCD, etc.
  • Unit of Measurement : Create your measurement Unit for Items, for example, LTR. MTR, PCS, BOX etc.

Before creating the Inventory info menu we should know what stock units of measurement are.

Stock Units of Measure:
Stock Items are mainly purchased and sold on the basis of quantity. The quantity in turn is measured by units. You can measure the Stock Item by Units, like money is measured in Currency. For example, Liters, Meters, Kilograms, Pieces, Box, Dozen, etc. Units can be classified under the following types :

  • Single / Simple Units : When only one Unit is used for receipt and issue of stock items. Above-mentioned are all example of Single Units.

  • Compound Units: When two different types of Units can be used for receipt and issue of the Stock item is called compound unit. For example :

First Unit

Conversion Factor

Second Unit










1. Simple Units of Measure

1.         Gateway of Tally > Create > type or select Unit and press Enter.

Alternatively, press Alt+(Go To) > Create Master > type or select Unit > and press Enter.


This field will show the Type of Units.

  • Simple
  • Compound.

Simple units are Nos, Pcs , and so on. Compound unit is a combination of two simple units.

By default TallyPrime will show the Simple unit for creating the unit of measure.
You can select the Compound Units by clicking on that field or by using SHIFT+TAB [cursor will go to the previous field].

2.            Define the Symbol of the unit, for example, Nos. This symbol is used in all displays and printouts.

3.            Specify the Formal Name of the symbol, for example, Numbers.

4.            Unit Quantity Code (UQC) is a uniform measuring unit used by the department for measuring quantity in the returns filed. UQCs are used to maintain consistency and prevent variations in quantities in the returns filed by different businesses. This requires the businesses to measure the quantities of items using the UQC from the list given by the department.

Using TallyPrime, you can map your unit of measurement to the UQC given by the department, and file the returns.

5.             In this field you can specify the Number decimal places for the Units from 0 to 4. This field is useful for Units measured in fractions.

For example, Kilogram unit. 1.255 Kgs, here 1 is for Kg and fraction 255 is for gram. For this unit, number of decimal places required is 3

2. Compound Units of Measure

A Compound Unit is a relation between two Simple Units. Hence, before you create a Compound Unit, ensure that you have already created two Simple Units.

For example, To Create Compound unit – Doz (Dozen) of 12 Nos (Numbers), you have to create two simple units,  Doz (Dozen) and Nos (Numbers) and set the conversion factor as 12.

1.         Gateway of Tally > Create > type or select Unit and press Enter.

Alternatively, press Alt+(Go To) > Create Master > type or select Unit > and press Enter.

The Unit Creation screen is displayed as shown. Now Click on Type field or

Press SHIFT + TAB or Press Backspace Key.


2.            Select Compound from the Types of Units and press Enter. The Conversion field will be displayed for creating Compound unit.


3.            Select the First unit from the Units List. In the above example, Dozen will be the First Unit.

4.            Specify the Conversion Factor. In the above example, Conversion factor will be 12.

5.            Specify the Second Unit from the Units List. In the above example, Number will be the Second Unit. This unit is also called Tail Unit.

6.            Use CTRL + A or Accept the Screen for Saving of Compound Unit Creation.

3. Alternation / Deletion of Stock Units

You can Alter / Delete the Units Of Measurement created in TallyPrime.

1.         Gateway of Tally > Alter > type or select Unit Name and press Enter to Alter.

Alternatively, press Alt+G (Go To) > Alter Master > type or select Unit Name and press Enter.

2.            Select the Name of Unit you want to alter from the Units list. The Unit  Alteration screen appears.


3.            Make the necessary changes.

4.            Press Ctrl+A to accept.

You can delete a Unit Of Measure by pressing Alt+D .

However, a unit of measure that is part of a compound measure cannot be deleted without deleting the compound measure first.


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