What is Item Master in Tally? Step-by-Step Guide to Create & Manage Stock Items

Item Master in Tally is used to maintain your inventory database efficiently. It allows you to manage stock items, define units of measurement, and classify items into groups. In this guide, we’ll walk you through the process to create Item Master in Tally

Understanding Item Masters in Tally: A Simple Guide

Managing inventory is a crucial part of any business, and Tally ERP 9 or TallyPrime makes it super easy with its Item Master feature. In this article, we’ll dive into what Item Masters are, how to create them, set up warehouses (godowns), define quantity symbols, and check item-related reports. Don’t worry, we’ll keep it simple, colorful, and full of examples to make it feel like a friendly chat!

What is an Item Master in Tally?

An Item Master in Tally is like a digital file for each product or item your business deals with. Whether you’re selling pens, laptops, or clothes, each item needs its own record in Tally to track its stock, price, and storage location. Think of it as a profile for every product you manufacture or trade, containing details like its name, unit of measurement, and where it’s stored (godown).

Note: Item Masters are essential for accurate inventory management and generating reports like stock summaries or sales reports.

Key Components of Item Masters

Before we jump into creating Item Masters, let’s understand the key pieces:

• Stock Item: The actual product, like “Laptop” or “T-shirt.”
• Stock Group: A category to group similar items, like “Electronics” or “Clothing.”
• Unit of Measure (UoM): How the item is measured, like “Nos” (numbers), “Kg” (kilograms), or “Ltr” (liters).
• Godown: The storage location, like “Main Warehouse” or “Shop Floor.”
• Opening Balance: The initial stock quantity and value when you start tracking.

Step-by-Step Guide to Creating an Item Master

Let’s walk through how to set up an Item Master in Tally ERP 9 or TallyPrime. We’ll also cover setting up godowns, units of measure, and more, with a practical example.

Step 1: Enable Inventory Features

Before creating Item Masters, ensure inventory features are enabled in Tally.

• Go to Gateway of Tally > F11: Features > F2: Inventory Features.
• Set Maintain Stock Items to Yes.
• Enable Maintain Multiple Godowns if you have multiple storage locations.
• Press Ctrl+A to save.

Example: You run an electronics store and want to track laptops and mobile phones stored in two warehouses. Enabling multiple godowns allows you to track stock in each location.

Step 2: Create a Unit of Measure (UoM)

Every stock item needs a unit of measure to define how it’s counted (e.g., pieces, kilograms).

• Go to Gateway of Tally > Inventory Info > Units of Measure > Create.
• Type: Select Simple (or Compound for complex units like “Box of 10 Nos”).
• Symbol: Enter a short name, like “Nos” or “Pcs.”
• Formal Name: Enter the full name, like “Numbers” or “Pieces.”
• Decimal Places: Set to 0 for whole numbers or 2 for decimals (e.g., 2.5 Kg).
• Press Ctrl+A to save.

Example: For laptops, create a UoM with Symbol: “Nos” and Formal Name: “Numbers.” For cables, use Symbol: “Mtr” and Formal Name: “Meters.”

Step 3: Create a Stock Group

Stock Groups help organize similar items for easier reporting.

• Go to Gateway of Tally > Inventory Info > Stock Groups > Create.
• Name: Enter a name, like “Electronics.”
• Under: Select Primary or another group if you want sub-groups.
• Should Quantities of Items be Added?: Set to Yes if all items in the group use the same UoM (e.g., Nos).
• Press Ctrl+A to save.

Example: Create a Stock Group called “Electronics” for laptops and mobiles, and another called “Accessories” for cables and chargers.

Step 4: Create a Godown (Warehouse)

Godowns are storage locations where your stock is kept.

• Go to Gateway of Tally > Inventory Info > Godowns > Create.
• Name: Enter a name, like “Main Warehouse.”
• Under: Select Primary or another parent godown for hierarchy.
• Allow Storage of Materials: Set to Yes.
• Press Ctrl+A to save.

Example: Create two godowns: “Main Warehouse” and “Shop Floor.” You can store 50 laptops in Main Warehouse and 20 in Shop Floor.

Step 5: Create a Stock Item

Now, let’s create the actual Item Master for your product.

• Go to Gateway of Tally > Inventory Info > Stock Items > Create.
• Name: Enter the item name, like “Laptop Dell XPS.”
• Under: Select the Stock Group, like “Electronics.”
• Units: Select the UoM, like “Nos.”
• Opening Balance: Enter quantity (e.g., 70 Nos) and rate (e.g., Rs. 50,000 per unit).
• Godown Details: Allocate quantities to godowns (e.g., 50 in Main Warehouse, 20 in Shop Floor).
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• Press Ctrl+A to save.

Example: Create a Stock Item “Laptop Dell XPS” under “Electronics” group, with UoM “Nos,” opening balance of 70 units at Rs. 50,000 each, split as 50 in Main Warehouse and 20 in Shop Floor.

Step 6: Enable GST (Optional)

If your item is taxable, set up GST details.

• During Stock Item creation, press Ctrl+I > select GST Details.
• Set GST Applicable to Yes.
• Enter tax rates as per your business.
• Press Ctrl+A to save.

How to Check Item-Related Reports

Tally provides several reports to track your stock items and godowns. Here’s how to access them:

1. Stock Summary Report

Shows the overall stock quantity, rate, and value for each item or group.

• Go to Gateway of Tally > Display More Reports > Inventory Books > Stock Summary.
• Drill down to view item-wise details.

Example: Check the total stock of “Laptop Dell XPS” across all godowns (70 Nos, Rs. 35,00,000 total value).

2. Godown Summary Report

Displays stock details for each godown.

• Go to Gateway of Tally > Display More Reports > Inventory Books > Godowns.
• Select a godown to view item-wise stock.

Example: View 50 laptops in Main Warehouse and 20 in Shop Floor.

3. Movement Analysis Report

Tracks inward and outward movement of stock items.

• Go to Gateway of Tally > Display More Reports > Inventory Books > Movement Analysis > Stock Item Analysis.
• Select the item to view its movement details.

Example: Analyze how many laptops were sold or transferred between godowns this month.

4. Stock Ageing Analysis

Shows how long items have been in stock to identify slow-moving items.

• Go to Gateway of Tally > Display More Reports > Inventory Books > Ageing Analysis.
• Configure to view ageing by days or months.

Example: Find out if any laptops have been in stock for over 90 days.

Practical Example: Setting Up an Item Master

Let’s say you own an electronics store and want to create an Item Master for “Laptop Dell XPS.”

• Create Unit of Measure: Symbol: “Nos,” Formal Name: “Numbers.”
• Create Stock Group: Name: “Electronics,” Quantities Added: Yes.
• Create Godowns: “Main Warehouse” and “Shop Floor.”
• Create Stock Item: Name: “Laptop Dell XPS,” Group: “Electronics,” UoM: “Nos,” Opening Balance: 70 Nos (50 in Main Warehouse, 20 in Shop Floor), Rate: Rs. 50,000.
• Check Reports: View Stock Summary to confirm 70 laptops with a total value of Rs. 35,00,000, and Godown Summary to see the split between warehouses.

Note: Always double-check your opening balance and godown allocations to avoid discrepancies in reports.

Tips for Managing Item Masters

• Use Aliases: Add alternative names or part numbers for easy identification.
• Batch Management: Enable batch-wise details for tracking expiry dates or serial numbers.
• Regular Updates: Update stock quantities after physical stock checks using Physical Stock Vouchers.
• Accurate UoM: Ensure the unit of measure matches your business needs for accurate reporting.

Conclusion

Creating and managing Item Masters in Tally is like organizing your inventory in a neat, digital filing cabinet. By setting up stock items, groups, units of measure, and godowns, you can track every detail of your products with ease. Plus, Tally’s reports like Stock Summary and Godown Summary make it simple to monitor your inventory in real-time. Follow the steps above, and you’ll be managing your stock like a pro in no time!

📘 Also Read: How to Create Ledger in Tally – Complete Ledger Setup Guide