How to Use Physical Stock Vouchers for Inventory Reconciliation in Tally Prime

Periodic stock audits are essential for businesses to ensure that physical inventory matches the quantities recorded in Tally Prime. Discrepancies arise from measurement errors, breakage, theft, or unrecorded transactions.

Tally Prime's Physical Stock Voucher enables you to record actual stock counts and automatically reconcile the differences against book stock.

1. Preparing for the Stock Audit

Before conducting the physical count:

• Ensure all pending purchase receipts and sales delivery notes are entered in Tally.
• Print a Stock Summary report from Tally (Gateway of Tally → Display → Inventory Books → Stock Summary) as your reference list.
• Assign team members to count different item categories and record counts on physical count sheets.

2. Recording the Physical Stock Voucher

1. Go to Gateway of Tally → Vouchers → F10 (Other Vouchers) → Physical Stock.
2. Set the date to the day the physical count was conducted.
3. For each stock item, enter the actual quantity counted in the Quantity column. Leave the rate field as Tally will use the current valuation method (FIFO, Average, etc.).
4. Save the voucher. Tally will compute the difference between book stock and physical stock for each item.

3. Booking Shortage and Surplus Adjustments

After saving the Physical Stock Voucher, use a Stock Journal Voucher to formally record the adjustment:

• Shortage (Physical < Book): Debit Stock Shortage / Loss on Inventory (Indirect Expense), Credit the stock item (reduces closing stock value).
• Surplus (Physical > Book): Debit the stock item (increases closing stock), Credit Excess Stock Found (Indirect Income).

4. GST ITC Reversal for Destroyed or Missing Stock

Under GST law (Section 17(5)), ITC is blocked for goods that are destroyed, lost, or stolen. If your stock shortage is due to these reasons, you must reverse the ITC already claimed on the proportionate input goods using GSTR-3B Table 4(B)(2) — Ineligible ITC.