What is the Unit of Measure Concept?
The unit of measure concept is a standard convention used in accounting, under which all transactions must be consistently recorded using the same currency. For example, a business maintaining its records in the United States would record all of its transactions in U.S. dollars, while a German company would record all of its transactions in Euros. If a transaction involves receipts or payments in a different currency, the amount is converted to the home currency used by an organization before being recorded. Without a common unit of measure, it would be impossible to produce financial statements.
In TallyPrime, you can create units and compound units (for e.g. No’s, pcs, box, etc) to measure stocks. Compound unit is referred to combination to two units of measure. For example, a box of 25 pieces is a compound unit of measure.
Gateway of TallyPrime > Inventory Master > Unit of Measure > Create.
Step 1: Login to Tally, from Gateway of Tally > Masters>create
Step 2: Next choose>Inventory Masters>Unit
Step 3: In next screen unit creation, enter the following details
After entering all the required details, press A:Accept to save the details in Tally.
- Symbol: Enter the units symbol by which a stock items are identified. For e.g. No’s indicates numbers.
- Formal name: Formal name refer as another name of the units. It helps to match the symbols with their respective names.
- Number of decimal places: number of decimal can be used for detecting units. For example – 5.20 Kg refer as 5Kg and 200 gms, where three decimals are expressed in grams.