Godowns & Stock Transfers in Tally Prime – Best Computer Institute, Rajahmundry

Godowns & Stock Transfers in TallyPrime

Understanding Godowns, Stock Transfers, Physical Stock Verification, Reports and Practical Exercises

1. Concept of Godowns

What is a Godown?
A Godown in TallyPrime represents a physical or logical location where stock items are stored.

A business may maintain stock at several locations such as the Head Office, Branches, Warehouses, Retail Shops, or Distribution Centres. Godowns help the business keep track of stock separately at each location.

Why are Godowns useful?

Track inventory at different locations.
Know the quantity available at each location.
Transfer stock from one location to another.
Monitor stock shortages and excesses.
Prepare godown-wise inventory reports.
Help with stock valuation and inventory control.

Example:
ABC Traders has stock stored at three locations:

Head Office – 500 units
Branch A – 200 units
Warehouse – 800 units

Instead of maintaining one combined stock figure, TallyPrime can maintain separate stock balances for each godown.

2. Creating Godowns

Godowns can be created in TallyPrime to represent different storage locations.

Gateway of Tally → Create → Godowns

Open Gateway of Tally.
Select Create and choose Godowns.
Enter the name of the godown, for example Hyderabad Warehouse.
Select the appropriate parent under the Under field.
Save the godown.

Primary and Secondary Godowns

Type	Meaning	Example
Primary	Main or parent godown.	Head Office
Secondary	Sub-godown created under another godown.	Branch A under Head Office

Example of Godown Hierarchy:

Head Office — Primary Godown
- Branch A — Secondary Godown
- Branch B — Secondary Godown

Tip: Use meaningful godown names such as “Hyderabad Warehouse”, “Secunderabad Branch”, or “Retail Shop” so that stock reports are easy to understand.

3. Multiple Godowns

When a business maintains inventory at multiple locations, multiple godowns can be used to maintain location-wise stock.

F11 → Inventory Features → Multiple Godowns

Advantages of Multiple Godowns

Separate stock records for each location.
Easy stock transfers between locations.
Godown-wise stock reporting.
Better inventory control.
Easy identification of stock shortages and excesses.

Example:

Godown	Item	Quantity
Warehouse 1	Item A	200 units
Warehouse 2	Item A	100 units
Retail Shop	Item A	50 units

Total stock = 350 units

4. Stock Transfers Using Stock Journal

Stock Journal is used to record the movement of stock from one godown or location to another.

A stock transfer normally does not represent a purchase or sale. It is an internal movement of inventory.

Gateway of Tally → Vouchers → Stock Journal (Alt + F7)

Steps to Transfer Stock

Open the Stock Journal voucher.
Select the Source Godown — the location from which stock is being moved.
Select the Destination Godown — the location receiving the stock.
Select the stock item.
Enter the quantity and applicable rate.
Save the voucher.

Example: Transfer of 40 Units

Particular	Details
Item	Item A
Source Godown	Head Office
Destination Godown	Branch A
Quantity	40 units

After saving the Stock Journal:

Head Office stock decreases by 40 units.
Branch A stock increases by 40 units.
Total business stock remains unchanged.

5. Physical Stock Verification Voucher

Physical Stock Verification is used when the actual quantity of stock counted physically is different from the quantity recorded in the books.

Gateway of Tally → Vouchers → Physical Stock (Alt + F10)

When is it used?

During periodic physical stock counting.
When stock is damaged or lost.
When there are shortages or excesses.
During inventory audits.
To reconcile physical stock with book stock.

Example:

Book stock of Item B at Branch A = 120 units

Physical count = 115 units

Difference = 5 units shortage

After recording the physical stock voucher with an actual quantity of 115 units, the stock balance is adjusted to the physical quantity.

Important: Physical Stock is not the same as a stock transfer. A transfer moves stock between locations, whereas physical stock verification adjusts the book quantity to match the physically verified quantity.

6. Important Reports

Report	Purpose
Stock Summary	Shows stock quantities and values for inventory items.
Godown Summary	Shows stock balances separately for different godowns.
Movement Analysis	Helps analyse movement of inventory between locations.

Remember: Reports are useful for checking whether stock transfers have been correctly reflected in each godown.

7. Complete Example: Purchase and Transfer

Scenario

ABC Traders purchases 100 units of Item A and stores them in the Head Office godown.

Later, 40 units are transferred to Branch A.

Step 1 — Purchase

Godown	Quantity Before	Purchase	Balance
Head Office	0	+100	100
Branch A	0	0	0

Step 2 — Transfer 40 Units

Godown	Before Transfer	Transfer	After Transfer
Head Office	100	-40	60
Branch A	0	+40	40

Total stock = 60 + 40 = 100 units.

8. Practice Questions

Question 1: Creating Godowns

Create two godowns:

Head Office — Primary
Branch A — Secondary under Head Office

Record a purchase of 100 units into Head Office. Then transfer 40 units to Branch A.

Question: What is the balance in each godown?

Answer:

Godown	Balance
Head Office	60 units
Branch A	40 units
Total	100 units

Question 2: Multiple Godowns

Create:

Warehouse 1
Warehouse 2

Purchase 200 units into Warehouse 1. Transfer 50 units to Warehouse 2.

Display the balances in the Godown Summary Report.

Expected Result:

Godown	Balance
Warehouse 1	150 units
Warehouse 2	50 units
Total	200 units

Question 3: Stock Journal Transfer

Transfer 30 units of Item A from Warehouse to Retail Shop.

Record the transaction using the Stock Journal Voucher.

Question: How does the Stock Summary reflect this transfer?

Expected Result:

Warehouse stock decreases by 30 units.
Retail Shop stock increases by 30 units.
Total stock of the business remains unchanged.

Question 4: Physical Stock Verification

Book stock shows 120 units of Item B in Branch A.

Physical counting shows only 115 units.

Record the difference using the Physical Stock Voucher.

Question: What adjustment does TallyPrime make?

Answer:

The physical quantity is 115 units, while the book quantity is 120 units.

Therefore:

Shortage = 120 − 115 = 5 units

After recording the physical stock, the stock quantity is adjusted to 115 units.

Question 5: Combined Scenario

Create two godowns:

Godown X
Godown Y

Purchase 150 units into Godown X.

Transfer 70 units from Godown X to Godown Y.

Physical verification in Godown Y shows only 68 units.

Record all the entries and check the final balances.

Expected Result:

After Purchase

Godown	Quantity
Godown X	150 units
Godown Y	0 units

After Transfer of 70 Units

Godown	Quantity
Godown X	80 units
Godown Y	70 units

After Physical Verification

Book stock in Godown Y = 70 units

Actual physical stock = 68 units

Shortage = 2 units

Godown	Final Stock
Godown X	80 units
Godown Y	68 units
Total Physical Stock	148 units

The original purchased quantity was 150 units. The final physical quantity is 148 units, indicating a total shortage of 2 units.

9. Quick Revision

Topic	Key Point
Godown	Represents a stock storage location.
Primary Godown	Main or parent godown.
Secondary Godown	Sub-godown under another godown.
Multiple Godowns	Maintains inventory separately for different locations.
Stock Journal	Used for internal stock movement between godowns.
Physical Stock	Used to reconcile book stock with physically counted stock.
Godown Summary	Shows stock balances by godown.

Key Concept to Remember

Stock Transfer: Moves stock from one godown to another without changing the total stock quantity of the business.

Physical Stock: Adjusts the recorded stock when the actual physical quantity differs from the book quantity.

Example: If Head Office has 100 units and transfers 40 units to Branch A, Head Office will have 60 units and Branch A will have 40 units. Total stock remains 100 units.