Tally Prime 7.0 Product Entry Guide: Step-by-Step Method to Create Products & Items

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Product (Stock Item) creation is one of the most important steps in Tally Prime 7.0. Correct product entries ensure accurate billing, proper stock tracking, correct GST calculation, and reliable reports. Whether you are a trader, wholesaler, retailer, or accountant, understanding how to create products properly in Tally Prime is essential.

This guide explains what product entries are, why they matter, and how to create products and items step by step in Tally Prime 7.0, along with best practices and common mistakes to avoid.

What Is Product Entry in Tally Prime 7.0?

Product entry in Tally Prime refers to the creation of Stock Items under the inventory module. Each stock item represents a product that you buy, sell, or store in your business.

A properly created product entry allows you to:

• Track stock quantity and value

• Generate accurate sales and purchase invoices

• Apply correct GST and HSN codes

• View item-wise profitability

Why Product Entry Is Important in Tally Prime

Incorrect or incomplete product entries can lead to:

• Wrong stock balances

• GST calculation errors

• Incorrect profit reports

• Inventory mismatch during audits

Correct product setup ensures:

• Smooth billing

• Accurate GST returns

• Reliable inventory reports

• Better business decision-making

Pre-Requisites Before Creating Products in Tally Prime 7.0

Before starting product entry, ensure the following:

1. Enable Inventory Features

1. Open Tally Prime

2. Press F11 (Features)

3. Enable Maintain Inventory

4. Enable Allow Invoicing

5. Save the settings

2. Create Stock Groups (Recommended)

Stock Groups help organize products logically.

Examples:

• Electronics

• Garments

• Hardware

• FMCG Items

Steps:

1. Go to Gateway of Tally

2. Select Create → Stock Group

3. Enter group name

4. Save

3. Create Units of Measure

Units define how products are measured.

Examples:

• Nos

• Pcs

• Kg

• Box

• Meter

Steps:

1. Go to Create → Units

2. Select Simple Unit

3. Enter unit symbol and formal name

4. Save

Step-by-Step Process to Create Product (Stock Item) in Tally Prime 7.0

Step 1: Open Stock Item Creation Screen

1. Go to Gateway of Tally

2. Select Create → Stock Item

Step 2: Enter Basic Product Details

Fill in the following fields carefully:

Name

• Enter product name clearly

• Avoid duplicate or confusing names

Example:
LED Bulb 9W Philips

Alias (Optional)

Used for alternative names or codes.

Under (Stock Group)

• Select the appropriate stock group

• Helps in category-wise reporting

Step 3: Define Units and Quantities

Units

• Select unit of measurement (Nos, Pcs, Kg, etc.)

Opening Balance

• Enter opening quantity and value (if stock already exists)

Step 4: Enable GST Details (Very Important)

Set/Alter GST Details: Yes

Fill the following:

• HSN Code

• GST Rate (5%, 12%, 18%, 28%)

• Applicable from date

Correct GST setup ensures:

• Accurate tax calculation

• Correct GST reports

Step 5: Set Pricing Details (Optional but Recommended)

You can define:

• Standard cost

• Standard selling price

• MRP (for retail businesses)

This helps in:

• Faster billing

• Profit margin analysis

Step 6: Save the Product

Press Ctrl + A to save the stock item.

Your product is now created successfully

Frequently Asked Questions