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Inventory consumption entry in tally

Sukanta Bhattacharjee (B.Com) (24 Points)

23 August 2015

I am working in a catering company and i am facing probloem with passing the entry of spices in inventory. Details is given below:

1. Spices(e.g. Haldi) purchased from Shop A by chq payment.

2. Spices grinded in grinding shop Shop B(10% spices is lost in the process of grinding)

3. Powder Haldi is kept in store and used in cooking.

Now, i am passing the following entry:

1. F9 Purchase(Haldi) entry

2. Dr.Shop A and

Cr.Bank

3. Dr. Spices grinding charge

Cr. Cash/Bank

How to show in tally that 10% of total purchase is wastage and final 90% can be used for consumption and also the change in cost per kg of the item.

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3 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 24 August 2015

Pass the purchase and payment entry for solid spice as usual. For grinding expenses ledger, enable the option ‘inventories values are effected’ and tag the inventory item against the amount. Afterwards pass a stock journal.
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# Suppose you purchase 100 kgs of solid haldi @ Rs. 50/kg & spent Rs. 1000 for grinding.
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# To know the effective cost/kg, grinding expenses shall be added to the cost as it is being incurred in bringing the spice to its present condition. Now effective rate will be Rs. 60/kg.
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# Then pass a stock journal. In source column enter 100 in qty. and 6000 in amount. In destination column enter 90 in qty and 6000 in amount. Let rate be calculated automatically.
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# After this you’ll get effective rate of Rs. 66.67 for 90 kgs available, using FIFO method.

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Anup Sharma (Accountant & Gst consultant) (33 Points)
Replied 22 May 2018

BUT HOW REMAINING 10 % WILL GET EFFECTED ?

DO WE HAVE TO PASS ANY JOURNAL ENTRIES FOR THE SAME AS IT

IS NORMAL LOSS WITH AMOUNT .

PLEASE CLARIFY IT

English Language (2 Points)
Replied 05 January 2021

Dear Sir,

Please help me out, I want to maintain the account of an Eye hospital where the medicines and lenses are bought and are used while performing the surgery. Not understanding the how to maintain the stock and show the consumption stock.