|Even the simplest of organisations will have inventory in more than one physical location. As organisations get bigger, inventory will require active 'management' with more warehouses (godowns), racks and shelves and stocks at project locations.
Take the case of multiple sales outlets, each with one godown. Each purchases items at different prices. Stock valuation must treat each of these outlets as independent units, and not apply the company average. With Tally.ERP 9, each outlet will act as an independent unit from a costing perspective. Sales from each outlet will reflect the appropriate cost, and not the company average (which can impact profitability of both outlets).
Seen at the company level, the cost behavior ignores these godowns, making reports and financial analysis appropriate at that level.
Godowns can even contain godowns, to allow management to the bin level.
For various jobs (projects) and sub-jobs, the use of godowns and cost centres in Tally.ERP 9 gives a high level of reporting and analysis on their inventory and financial aspects.