The cost of an item is the rate at which the item is purchased. However, there are other expenses like Packing charges, Freight charges, Cartage incurred, etc. which add to the cost of purchasing the item.
Thus, the additional cost details are required to be added to the actual cost of purchase.
Let us now see how Tally.ERP 9 handles this requirement.
Activating Additional Cost Details
F11 : Featuers > F2 : Inventory ( as below)
Name of Items
Create the following ledgers under the newly created group Expenses on Purchases with the option Inventory Values are Affected to Yes.
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
The purchase invoice appears as shown below:
3. Press Y or Enter to accept the screen and return to the Gateway of Tally.
Let us see the rate that is displayed in the stock item voucher report. Go to Gateway of Tally >
Display > Inventory Books > Stock Item > Select Stapler
In the entry dated 1-6-2019, we gave the additional cost details for each item (Stapler and Stapler Pins). This additional cost was calculated and added to the cost of the item. The additional costs are not added to the cost of the items, when the entry is made in the invoice format.
To appropriate the additional costs to purchase invoice of 1-6-2019,
Go to … Gateway of Tally > Accounts Info. > Groups > Single > Alter
The screen appears as shown below:
Select Appropriate by Qty from the Allocation Methods list.
Accept the screen and return to the Gateway of Tally
Similarly, select the option Appropriate by Qty in the Purchase Accounts group also
Go to Gateway of Tally > Display > Inventory Books > Stock Item
Press Enter till you reach the stock voucher screen
Select the purchase voucher dated 1-6-2019 and re-accept the voucher for the additional cost to take effect
Use F4: Item button and select Stapler Pins
Practical Exercise :
Ensure that you are in Indus Enterprises,
1. Enter a purchase invoice on 1-10-2019 for 10 Nos of Item One @ Rs. 100 each and 20 nos of Item Two - @ Rs. 200 each from the Supplier.
Create two stock items Item One and Item Two with the unit of measure as nos.
Create the ledgers - Supplier (Sundry Creditors), Delivery Charges on Purchases and
Tax on Purchases (under Purchase Accounts).
Alter the group Purchase Accounts and select Appropriate by Value as the method of appropriation.
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