Inventory and stock management is the heartbeat of every business. Especially businesses who are players in the retail sector, need to diligently manage their stock position for the entire company as well as stock-in-hand at each location. While there are several inventory reports which give you a detailed summary of the stock, Godown Summary is one such report which drills down to display the available stock at each location where your business operates and helps you take crucial inventory-related decisions seamlessly.

4 Key Benefits of a Godown Summary Report

1. Access to stock-in-hand at different locations

Companies use the Godown Summary report to track inventory within factory premises at various manufacturing stages or workstations. The statement provides current stock position for any godown or location at any time. The benefit of having enough stock-in-hand is to meet the demand of your customers. With this report, business owners can seamlessly decide on how to use the stock accurately. Since the statement will give you the location details, you can decide how and where to use the stock without spending any extra amount in the transportation from one location to another.

2. Compare Stock Balances

Efficient stock control allows you to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain. Godown Summary report gives you a thorough comparison between the stock balances or stock item quantities, rate and value with other godown(s)/location(s) for the different periods which lets you clearly draw comparisons between the stock available in different godowns. This report will also enable you to assess the slow- and fast-moving stocks over a period of time which is helpful for crucial decision making at an inventory level.

3. Stock Visibility

With the help of a Godown Summary report, you can non-transacted stock to alternate units to third-party stock which is in the warehouse. There could be numerous reasons why you might have sent stock to a third-party vendor and vice versa. The Godown Summary report will help you get a consolidated view of the stock whether physical/non-physical, which will further reduce working capital and increase profitability.

4. Customer Satisfaction

When you get a consolidated report of where your stock is physically, you can easily decide on the customers when the demand increases. Instead of informing your customer about the unavailability of the stock, you can advise him to approach the nearest warehouse as per his suitability where the stock is available. You can also take important decisions like how much time and money would you require to invest in order to deliver the stock to your consumer. Basis this, you can even communicate the timeline to your consumer which results in increased customer satisfaction as you can deliver the desired product as per the promised time.

As per Tally’s interpretation, the word Godown it is not limited to physical godown. Companies may use it to track inventory within factory premises at various manufacturing stages or workstations. Further, it is also required to track inventory of raw material and semi-finished and finished product under Job work activity either in case of material transferred on job work basis or for job work undertaken by the company. There is functionality in Tally’s godown master to mark it as own stock of company or third-party stock (i.e. material received for Job work and final product produced out of it by the company). As per accounting principles, such inventory of third party shall not be mixed up with companies own inventory. Tally.ERP 9‘s robust feature takes care in efficiently managing such inventory through the Godown Summary report. Find this feature interesting? Take a Free Trial right here and see how this particular report will help in your everyday business activities.

Stocks play the role of a heartbeat in a business setup. Accurate tracking and movement of stocks help define the profitability structure which further aids in assessing the future growth of a company. One such critical report to help you make better inventory decision is Stock Query Report. A stock query report helps you get detailed information about the stock. Not only will this give you an idea about your future investments in various stock items but also aid in making crucial business decisions. Here are some of the most interesting and insightful benefits you can reap out of stock query reports:

Benefits of Stock Query Report

· Identifying Top Buyers and Sellers

For any business owner, one of the most important things is to establish a thorough understanding of your loyal and topmost buyers and sellers. This will not only impact your business’ profitability but also help you make informed decisions about your stock. The buyer-seller relationship always needs to be maintained well, because effective management of this, defines the dynamics of buyer-seller evolution. Stock query report allows you to display the top buyers and sellers for an item, based on value or quantity. This will ultimately help provide a level of stability and encourage long term commitment from different parties towards achieving results.

· Stock Availability in the Warehouse

Often there are some items which are in high demand and it gets difficult to keep a track on them. However, with a stock query report, you can easily view the stock item available in the warehouse, to make a sale. The advantage about the stock query report is that you can easily view the number of items available in the warehouse at the invoicing level, so that you can give a clear and timely response to the customer at the time of billing.

· Alternate Stock Items

At times, during a particular sale, you find out that the item being enquired for by the customer isn’t readily available. In such scenarios, a good businessman wouldn’t want to lose out on the customer by informing him about the unavailability of the product. But with a stock query report, you can easily view and draw attention towards the alternate choices that the customer could opt for. This will not only help you retain the customer but also help you avoid any kind of monetary loses due to the unavailability of the product.

· Information About Last Sales

Isn’t it common to get confused between the pricing when you have multiple products to deal with? A stock query report will help you get the historical details of the price which will help you make more informed decisions at the point of sale without making you incur any losses.

Since all the necessary information related to stock item is readily available at a single click at the invoicing stage, stock query report in Tally, helps you save precious time. By giving your customer clear-cut information about the product in demand, you can maintain a healthy relationship with them. Stock Query report will also help you make informed decisions as you will have access to crucial information about various stock items in a blink of an eye.

Quite appealing, isn’t it? To get a thorough view of your stocks, take a free trial today, right here!

Understanding Debtor Management

Debtors make an important position in the structure of current assets of your firm. Your debtors would earn credibility based on their credit score and payment performance which is evaluated based on the payments to your firm they have taken credit from. Trade debtors represent amounts owed to the firm as a result of credit sale of goods or services in the ordinary course of business. The key function of credit management is to optimise the sales at the minimum possible cost of credit.

Each firm has its own credit management policy based on which it decides to provide a timeframe for debtors to pay their dues. The formulation of debt management policy seeks to achieve a balance between extending sales and the likelihood of these sales being profitable and collectable. It is quite possible that the receivable turnover is low, and the payment performance is high, indicating that the customers cleared their outstanding, but took a long time doing it. That’s when an accounting software would aid in assessing both the receivable turnover in days and the customer’s actual payment performance.

Benefits of tracking the payment performance of debtors

Identify Customers Sticking To Deadlines

A payment performance report will help you understand and identify the customers who make stick to the deadlines given to them by you. This not only helps them maintain a good credit score but also enable you as a business owner to have a steady cash flow. Prompt collection of debtors’ accounts will also help you maintain a healthy cash flow. Proper management of your debtors will help you get paid faster and prevent bad debts

Identify and Draw Attention Towards Late Payers

Since a payment performance report will give you a full view of the perpetual debtors who refrain from clearing dues as per the timeline provided by you, there are several effective ways in which you can communicate the same to them. As soon as you identify that payments from a particular customer are slow, ensure that you react quickly so that your business doesn’t take a hit in any way. Some of the ways to deal with slow performing debtors include, selling goods at a cash discount if they pay on time, offering them with extra benefits and functionalities (in terms of services) if they adhere to the timeline, etc.

Defining Credit Policy for Debt Control

It is believed that credit policy stimulates sales as it helps in retaining existing customers with a good credit score, and winning clients from competitors. The policy of credit management clarifies the objectives of the company and set best practices that must be followed by the entire organization. Defining of “standard” model for stakeholders and customers will help you smoothen the process of debt collection and mitigating any risks which could affect your company’s financial status.

With Tally, you get a consolidated report of performance of actual payments and the payment history of the customer to assess how long he takes to pay the outstanding balance. Not only will you get to know the actual history for each payment that was made by the customer, but also when the invoice was paid, how long it was due and what was the delay in payment. To know in detail about this crucial feature in Tally, click here! You can also try it out for free here, and see how tracking of payment performance of debtors could impact your business in a huge way.