How to Create Simple and Compound Unit in Tally

How to Create Simple and Compound  Unit  in Tally

Unit of Measurement in Tally ERP 9

Stock item is mainly purchased and sold on the basis of quality. The quality is measured  by units. In such a case it is necessary to create the unit of measurement .Unit of measure can be the simple unit such as nos,meters,kilogram,pieces compound units eg. box of 10 pieces .Create the unit of measure before creating the stock items.

to create the unit of measure :

Go to gateway of Tally > Inventory info > unit of measurement > create

  1. In the type field select simple
  2. In the field of symbols type nos
  3.  In the format name type Number.
  4.  In the field of number of decimal places : 0
  5. Type Tally has the options to create simple units as well as compound units.

An example of simple units nos ,pcs etc Compound units of two simple units example A compound box of 10 pcs a combination of two simple units pcs and box.


 This is the symbol by which we will identify the stock unit.For example, pcs to indicate -pieces.

Formal Name :

This is the complete or formal name of the symbol specifying the formal name is useful if you wish consolidate data of different companies where the symbol might be the same but are assigned different units.In such case, the formal name will be used to match them consolidating data of different companies .

Number of decimal Places

If the unit will be used fractions say for kilogram you may have grams as well give the number of decimal places.For 1 kilograms 865 grams  will be 1.865 gram for units like this you do not normally want a decimal place and you can specify 0 in such case you can specify 0 to 4 decimal places.

To create a compound unit, Tally . Suppose we have the business of purchasing wheat which we purchase in tons and sold it to our customers in quantiles and kgs .

Now some points to be in a notice that 1 tons contain 10 quintals .1 quantal contain 100 kgs.

  • Go to Gateway of Tally > Inventory Features >create inventory
  • under the unit of measurement
  • Set type simple
  • symbol : kgs
  • formal name kilogram
  • and the number of decimal places : 0


  • under the unit of measurement
  • Set type simple
  • symbol : Quantal
  • formal name : as formal name and symbol can’t be same therefore we are leaving it blank.
  • and the number of decimal places : 2


Now go to stock items and Create press F12 SET use alternate unit in stock item YES

  • Name : Wheat
  • Under : Primary
  • Units : kgs
  • Alternate units : select quantal Now SET where 1 quantal = 100 kgs
  • now create another unit
  • under Type Set to compound
  • now set Tons of 10 quintals


  • now go to Accounting features and then go to accounting vouchers > press F9 and go to item invoice mode

enter the details as following in the pictures given below :

now here if you purchased amount in quantal the you have to type 1 quantal in quantity it automatically converts it not kgs and show in quantal below

voucher 1

Similarly another example


Stock Item Units 1 Units 2 PP
Milk Liter Milliliter Rs.60 /liter



In the above example, milk is purchased in liters and sold in milliliters to its customers

here we have to create two stock units

Go to gateway of tally and then inventory vouchers > Unit of measurement >create stock unit >

liters in units in tally

Similarly, create another unit

Create stock item Milk

now go to inventory info > stock item > press f12 set allow alternate unit in a stock item set to YESuse alternate unit in stock item f12


Now we take another example of

Purchase 100 tons of Wheat for cash Rs 10,000 per ton. and sold 50 kg  Wheat for rs 120 per kg.

how to make the unit of measurement in following case

under such condition

Go to gateway of tally > inventory feature > unit measurement > create unit > tons


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