How to Justify When You Send Stock from Store to Cost Centers in Tally

You know stock is our asset. In big national and international company, this stock will transfer from one store to different cost centers. Now, if you are the accountant and you buy different items and keep it in store and send to different cost centers, how can you justify it through proper record in Tally accounting software.


First of all I have to explain through a simple example. For example, you are the accountant of A store and you have bought diesel of 1000 Lts at the rate of Rs. 50 per ltr. and you have 100 cost centers who demand diesel for production. Anyone of audit department can ask, how much quantity and cost diesel, you have sent to 41st cost center? Because you are responsible accountant and you have to tell where you have consumed company's asset (inventory).

Many accountant and CA will confuse by adding new feature of cost center as yes. Never confuse it as creating cost centers. In tally, we will pass voucher the different expenses  directly in cost centers. So, we need to create cost center. But, here is our problem is just to justify where is our inventory from store. So, accountant will only do.


a) He will create ledger of all cost centers under sundry debtor.
b) He will create store under purchases.
c) He will create sale under sales.
d) He will pass the voucher entry of purchase as as store when he will buy any item. For this, he has to create stock items first.
e) If any cost center demands, it means our debtor wants to buy goods ( Just think for internal management) and pass voucher entry in sales voucher.

Now, you can track, we have sent 41st Cost center respective quantity at cost. If there is no stock in your store, you can easy justify this stock, where it is now. You can speak to audit department that his tally book shows that 200 ltrs. diesel is in the hand of 41st cost center.


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Accounting Education: How to Justify When You Send Stock from Store to Cost Centers in Tally
How to Justify When You Send Stock from Store to Cost Centers in Tally
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