Opening and closing stock directly affect profit and balance sheet in Tally.
Yet many users face a common issue: stock values are entered correctly, but still do not reflect in the Profit & Loss Account or Balance Sheet.
This usually happens due to misunderstandings around stock valuation, inventory settings, or incorrect entry methods in Tally.
This updated guide explains how stock valuation works in Tally Prime 7, how to correctly enter opening and closing stock, and why it sometimes doesn’t appear in reports—along with clear fixes.
Accounting stock v/s Inventory stock in Tally(Most Common Confusion)
To understand why opening or closing stock sometimes does not reflect in Profit & Loss Account, it is important to understand the difference between Accounting Stock and Inventory Stock in Tally.
Tally supports both accounting-based stock valuation and inventory-based stock management. Most issues arise when users mix these two methods without realizing how Tally calculates stock values.
Inventory Stock (Recommended Method)
When Inventory is enabled in Tally:
Closing stock is calculated automatically
It is derived from:
Opening stock
Purchase, sales, and stock journal transactions
Users cannot manually edit closing stock
Only opening stock can be entered when books are started (usually on the first day of the financial year)
Closing stock appears automatically in:
- Profit & Loss Account
- Balance Sheet
This method is suitable for businesses that maintain stock items, godowns, and real-time inventory records.
Accounting Stock (Manual Method)
In Accounting Stock, stock is treated as a ledger instead of inventory items.
Users must manually enter:
Opening stock (as on the first day of the financial year)
Closing stock (as on any reporting date)
Closing stock is not calculated automatically
Stock value appears in:
- Profit & Loss Account
- Balance Sheet
Once entered, the balance cannot be edited freely, except by altering the ledger entry
This method is generally used only when inventory features are not required.
Important Setting Required for Accounting Stock
To use accounting stock correctly, a small configuration change is required in Tally:
Tally Main Menu → F11 (Features) → Inventory Features
Set: Integrate Accounts with Inventory = No
This setting controls how closing stock is calculated and displayed in the Profit & Loss Account.
Refer the attached Screen shot to understand the easiest setting you will need to apply:
The Screen shot is taken from Prime 7 However, it is relevant to all the previous Tally Version.
Important clarification:
Changing this option does not delete data
It only changes how Tally computes and displays stock
Switching it back will restore the previous calculation method
However, frequent switching is not recommended once books are finalized, as it may confuse reporting.
Why Closing Stock Is Not Showing in Profit & Loss Account in Tally
One of the most common problems faced by Tally users is that opening or closing stock is entered correctly, but still does not appear in the Profit & Loss Account or Balance Sheet.
In most cases, this is not a software bug, but a configuration or method mismatch.
Below are the most common reasons and their practical explanations.
- Inventory Is Enabled but Stock Is Entered Through Ledger (Most Common Reason)
When Inventory is enabled in Tally, closing stock is calculated only from stock items, not from ledger balances.
If stock values are entered through a ledger under Stock-in-Hand while inventory features are active:
- Tally will ignore ledger stock
- Closing stock will not appear in Profit & Loss Account
- Balance Sheet may also show incorrect figures
Fix:
Use either inventory-based stock items or accounting-based stock ledgers — not both.
If inventory is required, enter stock through Stock Items, not ledgers.
- Closing Stock Cannot Be Entered Manually When Inventory Is Used
Many users expect a direct “closing stock entry” in Tally.
However, in inventory mode, closing stock is never entered manually.
In inventory-enabled companies:
- Users enter opening stock only
- Purchases, sales, and stock journals update stock automatically
- Closing stock is calculated by Tally as on the reporting date
This is why closing stock appears in Profit & Loss Account even when no specific entry is passed.
Important:
If you are maintaining inventory, there is no separate closing stock entry.
- Opening Stock Is Entered on the Wrong Date or Wrong Financial Year
Opening stock must always be entered on the first day of the financial year.
Common mistakes include:
- Entering opening stock on a later date
- Altering opening stock after data split
- Trying to change opening stock of a carried-forward year
During company data split:
- Closing stock of the previous year automatically becomes opening stock of the new year
- Manual alteration may not be accepted
In a newly created company:
- Opening stock must be entered again, even if it existed earlier
- Closing Stock Value Is Zero or Incorrect Due to Valuation Issues
Sometimes stock quantity appears correctly, but value is zero or mismatched.
This usually happens due to:
- Zero quantity with value remaining
- Negative stock
- Multiple purchase rates
- Incorrect valuation method (FIFO / Average)
- Stock items created without proper rate or UOM
Note:
These are inventory valuation issues, not accounting errors.
Always verify:
- Stock item valuation method
- Purchase rates
- Godown allocation (if used)
- Profit & Loss Shows Same Opening and Closing Stock
If opening and closing stock values are identical, it usually means:
- No stock movement during the period
- Purchases or sales were recorded without stock items
- Stock valuation date is incorrect
Tally reflects stock movement only when transactions affect inventory.
- Changing “Integrate Accounts with Inventory” Did Not Fix the Issue
The option Integrate Accounts with Inventory controls how stock values are calculated, not how stock is entered.
Changing this option:
- Does not correct wrong stock entries
- Does not override incorrect dates
- Does not fix valuation mistakes
It only changes how closing stock is computed in Profit & Loss Account.
Key Takeaway
If closing stock is not appearing correctly in Profit & Loss Account, always check:
- Whether inventory is enabled
- How stock is entered (ledger vs stock items)
- Opening stock date
- Valuation method
- Financial year consistency
Once these are aligned, closing stock will reflect correctly in both Profit & Loss Account and Balance Sheet.
🔎 Important Note
Frequent manual adjustments to stock figures may work for small businesses, but they become difficult to control as transactions, locations, or reporting requirements increase.
Frequently Asked Questions on Opening & Closing Stock in Tally
- How do I enter opening stock so that it appears in Profit & Loss Account?
Opening stock must be entered on the first day of the financial year.
If inventory is enabled, opening stock should be entered in Stock Items.
If inventory is not used, it must be entered through a Stock-in-Hand ledger.
Mixing both methods will prevent stock from appearing correctly in Profit & Loss Account.
- Why is my closing stock not showing in Profit & Loss Account?
This usually happens because:
- Inventory is enabled but stock is entered via ledger
- Opening stock is entered on the wrong date
- Inventory valuation method is incorrect
Closing stock is calculated automatically when inventory is enabled and cannot be entered manually.
- Can I enter closing stock directly in Tally?
No.
When inventory features are enabled, closing stock is always auto-calculated by Tally based on:
- Opening stock
- Purchases
- Sales
- Stock journals
Only opening stock can be entered manually.
- My opening and closing stock values are the same. What is the reason?
This usually means:
- No inventory movement occurred during the period
- Purchases or sales were recorded without stock items
- Valuation date is incorrect
Check whether inventory transactions actually affected stock items.
- I entered stock correctly but it is not reflecting in Balance Sheet or P&L. What should I check?
Verify the following:
- Inventory is enabled or disabled correctly
- Stock entry method matches the configuration
- Opening stock date is correct
- Valuation method is set properly
Most issues are configuration-related, not software errors.
- After splitting company data, opening stock value changed. Why?
During data split:
- Closing stock of the previous year automatically becomes opening stock of the new year
- Manual alteration of opening stock may not be accepted
- This issue often appears after company data is split into a new financial year
Ensure that stock valuation and transaction dates are correct before splitting data.
- I created a new company instead of splitting data. How do I enter opening stock?
In a new company:
- Opening stock must be entered again
- Previous year stock does not carry forward automatically
Enter opening stock on the first day of the financial year.
- Why does my stock show zero quantity but still have value?
This happens due to:
- Incorrect valuation method
- Negative stock situations
- Rate differences from earlier transactions
This is an inventory valuation issue, not an accounting mistake.
- Why does Balance Sheet stock value differ from Stock Summary?
Possible reasons include:
- Multiple valuation methods
- Incorrect rates
- Godown or batch-level differences
- Negative stock
Always verify stock valuation settings at the item level.
- Changing “Integrate Accounts with Inventory” did not fix my issue. Why?
This option:
- Only controls how stock values are calculated
- Does not correct wrong stock entries
- Does not fix date or valuation errors
It should not be used as a quick fix.
- How do I remove opening balance difference appearing in Balance Sheet?
Opening balance differences usually occur due to:
- Incorrect opening balances
- Manual year-end adjustments
- Incomplete ledger entries
Review opening balances carefully and avoid adjusting stock through Profit & Loss Account.
- How can I get a detailed closing stock report with quantity and value?
Use the Stock Summary or Inventory Reports in Tally.
These reports provide:
- Item name
- Quantity
- Rate
- Value
- Godown details (if enabled)
Last Updated: 15th December, 2025.
Written by Mahendrasinh Rana, founder of Bizmitra ERP and Tally expert with 25+ years in GST & business automation
how to post opening stock in p&l a/c in tally
Sir,
How to convert the rawmaterial stock in to fabric stock
Sir,
How do we change the opening stock date in tally 7.2?
Why are the opening stock & clossing stock balance is not shown in the profit&loss account?
Hello Anupama,
You need to enter The stock manually in the stock ledger after that it will show in P & L Account
Sir i did as you specified
but its not reflecting in balance sheet or p&l why ?
sir,
I have entered the opening and closing stock as u tell. bt I don’t get it in b/s & p/l. plz tell me what to do
Namita,
Have you entered the data along with date?
and have you checked the correct date filters in your profit loss account?
Also you will have to set Integrate Accounts with Inventory to No
dear friend,
if there nothig displayed in Proft and loss account you just try to follow the steps
on P&L screen press F11 and in General category intergarated accounts and Inventory dispaled as yes please change as no then look out P&L
thank u v much sir ..gud suggetion
sir,
I made the opening & closing stock entries as per your suggestion. but the entries are not displayed on the screen. What to do?
I have done as your instructions. But closing stock and opening stock were not able to see on the profit & Loss account
you go to ledger then alter then enter the opening stock or closing stock according to you ledger.. that can be show and it will effect you final accounts
thanks
vimal
sir i want to know about how to prepare a closing stock in tally. so pls give me some idea about and how to get all shortcut key of tally
sir, I have entered profit and loss account,but closing stock and opening stock amount same. so which option is missing for me. kindly told me.
thanking you,
ANTONY.
Antony,
Thanks for your query.
You can enter the stock through P & L Account and or from the ledger alter options also along with the fy opening / fy closing date
open p/l a/c after that press keys alt+f2 and enter da closing stock date
then show yours closing & opening stock amt differents
Thank u so much. I got answer only from u
hello sir,i am working in hospital there is not maintaing closing stock & opening stock so my query is that what should i do t that stock should not be disply in tally9erp. plz help
Harshala,
Please check the FAQ section in the article
how create opening balance in tally 7.2 version and how do enter sales invoice in tally
which shortcut key are use to change the method of valuation of closing stock?
how create opening balance&closing balance
simple you create a ledger of opening stock under group —- stock in hand & accept this
after that you go ladger and alter and select the opening stock ledger and fill the amt of opening stock & closing stock with their dates
how to use tally button M-EMAIL FOR MAILING TALLY P&LOSS BALANCE SHEET
sir i want to know how to feed directly closing stock in tally
sir, i want to know how to final the accounts in tally erp 9
sir am using tally erp9 in malaysia.here we are not maintaining acccounts with inventory.but if i want to put the value of opening and closing stock of raw material,finished goods and semi finished goods (wip) how to enter that without maintaining the inventory .
Sir
I am Spliting company data for 2010-11 & 2011-12
spliting success but 2010-11 closing Stock to be carry forward for 2011-12 opening stock but value is change why i alter the opening stock but not accectpeted when i alter the opening stock is change the value of every time plese suggest me
thanking you
Jyothi,
Please contact your TSP (Tally Service Partner) I am sure they will assist you. In case they do not help you, please write a mail to support@tallysolutions.com
Sir, Can you tell any one how to nulliyfy the opening balance difference in the current year it is showing in balance sheet liability side
profit and loss a/c. 32662493.79
opening Rs. 2748.00
current period Rs.3263501.00
I want to nully the Rs.2748/-
Please help me.
Rangnath,
Check your closing balance as per last year and check opening balance in Tally. It does not require that high skill or a technical knowledge to resolve it.
dearsir,
kinldy explain the pay roll system and how to use in the tally software.
thamks.
could u kindly tell me how do we close the closing dbalance
pls give some questions for tally practice with explanation
Hello sir,
In one Musical Instrument product, have 3 to 4 names in bill book, as per bill book i enter the bills, but physical stock and tally stock not matching properly, how to carry physical stock in future answer me briefly
first of all you can use two name each product, that is in stock u can create additional name (alternate name), with that u can use two name for each product and more over you can use that same name that will make you account clearly and you stock also match
thank you,
by vimal – pondicherry.
Sir
I am using Tally ERP9 and want to maintain qty wise inventory but as per the balancesheet my closing stock is varying from tally closing stock how could i make the entry so that stock in balancesheet and tally do not vary?
have you got solution of this query. Kindly let me know
Hello Sir,
i want to ask you that how can we enter the value of closing stock if we work with inventory system.
thanks
Dear Sir,
We just registered as private limited. I want to know how to operate the capital a/c in tally erp9. Please treat me as most urgently.
Thanking you
sir ,
can please clarify my doubts regarding VAT&SERVICE TAX returns filling & data entry regarding this
Sir Iam forgot the tally i want to put opening balance for current year cash in hd + 506395 bank + 47501
hello sir..
can u tell me that how to export sales reg.(extract) file in to excel..i try many time but its not done..please suggest me sir..
good evening sir,
first of all thanks for helping people.
please let me know if i can change opening date of any ledger from 1 January to 1 June.
Sir, I want to know how to enter hospital a/c in tally?
sir i want to ask that i dont feel any entry of closing stock then why in profit & loss account closing stock item, amount see please reply
how to stock maintain in tally 7.2 (textiles purpose )
I have generator power energy that energy are given to inventory that items are consider at stock as sale some stock over to hand that stock consider to banking units how us use to tally…pls give a solutions…
Sir,
I am prepare all ledger and expenses and adjust p & l a/c but i want to know some ledgers closing amount is nill but showing p& l a/c …..pls help me
Please let me know details to be posted for opening balance for capital account for current year, what are all include in capital account for opening
after entering the purchase entry in tally 9 with stock items individually I found that the value of Inward stocks are not tally with closing stock value there are some difference also. I think this difference comes due to rates of individual stock item. How I solve this problem?
After splitting my data the closing stock amounts do not match with the original..wat can be done ? Please reply. Its urgent
If we make alteration in bom how to make corresponding changes in consumption entry.
Also how to make tally recalculate stock balances if there are changes in closing stock.
Sir thank you very much good pcs of knowledge here.
now i have sold all my stock
now my stock summery is zero
my question is that now how can i increase my stock in hand
thanks a trillion…struggled for 5 days before i hit this…thanks once more
why sr.crditors shown in Balance sheet asset side
you are unders the head sundry creaditor u will check ledger.
sir,
in my inventory the stock shown in tally erp 9 is nil but it shows a value for the nil amount. How can i remove the value for which there is no stock. It is shown in the stock summary where the item is zero but a value cost is shown for the zero item.
i am mohit aggarwal i create a accounts only company in tally erp 9 i create a ledger opening stock show the amount is 100000 rs.( dr.) but automatic closing stock in p&L show 100000 rs. but show in difference in balance sheet how to (cr.) this amount which ledger. i am asking more than person he saying this amount is transfer to capital a/c but i was see one firm start to business 500000 capital the owners is mohd. safeeiq ledger is show only 500000,not show to stock value.how to show this amount balancing.piz reply me.????????
sir how to find the value of closing stock but how to possible calculate the without gross profit I’m apply formula opening stocks+purchase+gross profit-sales but without calculate closing stock show in gross profit.how this possible..gross profit show in after less (Dr) side
I am b.com graduate, i done tally but not experienced in Tally. shall i get good job in tally. Otherwise again i vl do tally ERP 9. suggest me.
I am b.com graduate, i done tally but not experienced in Tally. shall i get good job in tally. Otherwise again i vl do tally ERP 9. suggest me. I want payrol,,cost, TDS,ESI,PFsales, Bank reconcilation.
sir I followed the steps as mentioned above to show the closing stock and opening stock at different values but its effect is not reflecting in P&L A/C. I even changed the integrated accounts and inventory option to “no” even then it did not work.
Thnks for helping ..very helpful articles …
can any one tell me how to see comparative profit & loss accounts in tally 7.2 for 2 subsequent years????
Hello Aslam,
Tally 7.2 is a dead product so nothing is possible
Sir
Please tell me the staff salary entry in tally erp 9 and pls tell me the all head of salary a/c and witch ledger under witch group
It needs a lot of one time settings. Please follow some settings are available in the tutorials
dear Sir,
this year I have not split the company. I created a new company. how to put the value of opening stock in new company?
Dear Sir/Madam,
Good Afternoon, This is Ahmed Ali and using Tally ERP9 in a Mechanical Company, kindly guide me that how i can get Closing Stock Report, with. (Item Codes, Description, UOM, Qty. Price, Value) waiting here from you soon,
Regards Ahmed Ali
dear sir
i have a query regarding negative closing stock value..if there is not giving any value of opening balance..so what should we have to put in opening balance in item allocation screen?
Halo sir in my firm we use tally ERP9,and i don’t know how to maintain the stock and how we reduce the negative stock.how we control the stock difference as compare to the manual stock register and how they balance each properly
helo sir
I have a one doubt , how the changes opening inventory from the inventory ledger.
I have created a company and its period is 1-1-14 to 31-12-14 , in this period given opening and closing inventory and generated TB ,P&L and BS. And same company started posting 2015 period .
Now i am facing problem when i tack the TB of 2015 period it showing opening inventory balance as 2014 ,
please help me how to change the opening inventory for period of 2015
Dear sir,
difference in opening balance shown in assets side
how check and correct the balance sheet
Please compare your last year closing figures with the opening balance in Tally which you had feed in the Tally as opening Balance
Hi, Mahendra Bhai, This is manish, hope you remember,
My querry is how to enter stock qty and amount both in physical stock voucher ?
Thanks a lot.
please help me how can i transfer my capital amount to stock in hand account . my father died so the stock in his company i ve taken . so that stock came into my capital account. now how can i transfer that amount to stock in hand.