accounting in garment industry using Tally.ERP 9

accounting in garment industry

Tally.ERP 9 supports perfect accounting and business solution for almost every industry, trade and business. Here we will learn how to use Tally.ERP 9 in garment Industries where garments are rented and how to do accounting for garment in Tally.ERP 9

 accounting in garment industry : problems

Case:- Customer wants to maintain his accounts/inventory of suits that he gives on rent. So, how the accounting in garment industry will be maintained in Tally.ERP 9 with inventory?

The customer would want to keep track of the suits given on rent, and their collection.

Let us see an example :-

We create ledgers

(our customer) – Mr Abc.

How to use Tally.ERP 9 in Garment Industry
accounting for garment learn how to manage in Tally.ERP 9 for dresses given on rent

 

The sales ledger:-

accounting in garment industry

 

 

The items that we have for renting out are :-

accounting in garment industry item creation

and the second item is accounting in garment industry item creation

We have created two items in the case. We have the opening qty as 5pcs and 2 pcs for suit type 1 and type 2 respectively.

Enable Tracking of Material (from gateway of tally press F11- and then F2)

accounting in garment industry advance feature

 

 

Now let’s create a delivery note by the name of dresses given on rent ( Accounts à voucher Type àCreate)

enable_tracking accounting for garment

One more voucher type is created as :-

 

vouchertype accounting for garment

Please note that we have also kept the print formal receipt after saving to yes because when the customer comes to return the dress he had taken on hire, he needs to make payment and then the customer gives me a formal receipt print.

 

Once the masters are ready, lets pass a voucher. Let’s say ABC comes and takes a suit on rent.

 

Now let us view the stock once , go to stock summary:- ( the stocks that are with us, we have kept the items in a godown named – shop)

godownView accounting for garment8_b_godown accounting for garment

 

 

 

 

 

 

 

So let’s make a voucher entry so that we can track the no of pcs that have been out on rent.

Come to gateway of tally – press T ( inventory) à press Alt-F8,

Select Dresses given on rent

 

 

 

 

 

Select the party ledger as Mr ABC.

 

 

 

Select the item as Suit-Type-1 and let us choose the godown as Main location and not Shop, where the material actually was. This is done so that we can track what all items have been given out on rent. ( shown in the stock summary as –ve stock)

 

 

accounting in garment industry using Tally.ERP 9

 

The item cost for rent is Rs. 350  and the entry is completed as shown below.

accounting in garment industry using Tally.ERP 9

 

 

Select the sales ledger.

accounting for garment image type 1
accounting for garment

 

The delivery note print may be given as ( pressing ALT-P) and saving the voucher. We may also set print after save option to yes in the voucher type if this has to be done every time.

Delivery note for accounting for garment

14_invoice accounting for garment

Now let us view the report of stock as( stock summary) :-

 

15_reporting accounting for garment

This clearly shows that suit-type 1 has been out on rent as 1 qty is being shown as –ve.

Currently, we have 1 pc of the item at our place. While in total we have 2 such pcs.

This report gives us the status of the inventory at any point of time.

Now let us view the Profit and Loss report

 

 

16_report

It clearly shows the sales-bills to make is of Rs. 350.

Just drill down from there and get the details as:-

 

17_item_report accounting for garment

Now since the customer doesn’t need the details of this once the suit is returned back.

Press enter and on the delivery note and change that to a receipt entry by pressing F6. There could be a method of maintain detailed reports but there the customer has to make 2 more entries per transaction and the customer wants to make the minimum no of entries hence this approach has been adopted.

 

18_vc_type accounting for garment

 

Now we make changes in the receipt voucher as :-

19_coucher accounting for garment

 

 

Select End of list because we get  two sales as we converted it from the delivery note.

20_voucher accounting for garment

 

 

Now we want this inventory to reflect correctly, hence we don’t select the inventory and just press End-of-list.

21_vc accounting for garment 22 accounting for garment

 

Now once this is done, make the entry as :-

23 accounting for garment

 

Here we give the details of the customer, because we won’t be needing the ledger anyway

And they can be deleted. Also if the customer has a huge number of customers then it’s recommended that only one ledger named customer can be created and the details can be provided as per the reference bill only the display.

The info is completely available from sales bill to make as :-

24 accounting for garment

 

The customer ledger is configured as:-

25 accounting for garment

The receipt that is given to the customer is as:-

26 accounting for garment

 

 

And the stock summary is correctly shown as :-

 

27 accounting for garment