Additional Cost on Purchase using Tally.ERP9

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)

1. Creating Purchase Invoice with Additional Cost Details

Setup:

Note :

Ensure that Enter Purchases in Invoice Format in F11: Features (Accounting Features) is set to Yes
Create a Ledger – Stationery House under Sundry Creditors.
Create the following stock items:

Name of Items	Under	Units
Stapler	Primary	Nos
Stapler Pin	Primary	Nos

Create a new group Expenses on Purchases under the default group Purchase Accounts

Create the following ledgers under the newly created group Expenses on Purchases with the option Inventory Values are Affected to Yes.

Packing Charges on Purchases
Carriage on Purchase

Step 1:Create Purchase Invoice

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

The purchase invoice appears as shown below:

Creating Purchase Invoice with Additional Cost Details in Tally.ERP9

3. Press Y or Enter to accept the screen and return to the Gateway of Tally.

Display Stock Voucher Report

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

Press Enter till you reach the Stock Vouchers screen as shown below:

Creating Purchase Invoice with Additional Cost Details in Tally.ERP9

2. Appropriate Additional Costs on Purchase using Tally.ERP9

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

Select Expenses on Purchases

The screen appears as shown below:

Appropriate Additional Costs in Tally.ERP9

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

Display Stock Voucher Report

Go to Gateway of Tally > Display > Inventory Books > Stock Item

Select Stapler
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

The Stock Vouchers with additional cost details for Stapler appears as shown below :

Appropriate Additional Costs in Tally.ERP9

Use F4: Item button and select Stapler Pins

The Stock Vouchers with additional cost details for Stapler Pins appears as shown below:

Appropriate Additional Costs in Tally.ERP9

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.

Setup :

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.