Whenever, we maintain the inventories in tally then unit of measure plays a very important role. No one can maintain inventories in tally if unit of measure is not created. Inventories are maintained in quantity and in value. As you know that the value is always determined in rupees but quantity may be different for different products. For example, boxes, numbers, dozen, liter, kilogram, gram, milligram, meter, inches, centimeters, millimeters, bottles, pairs etc. Therefore, one has to create the measure of unit according to the needs of the business firm. Unit of Measure is created as under:-

  • Open – Tally
  • Select ‘Inventory Info’ under ‘Gateway of Tally’
  • Select ‘Unit of Measure’ under ‘Inventory Info’
  • Select ‘Create’. Now you shall find your screen as under:-


  • Now, suppose, you want to maintain the inventories of a business firm who is dealing in vegetable oil which is being sold in liters then you have to maintain your stock in liters. So, create liters as measure of unit.
  • Under Symbol – write ‘Liter’
  • Formal Name – is also Liter. So, here also you just write – ‘Liters’

Please note that the matter in ‘under symbol’ and ‘Formal Name’ should not be same other wise tally shall not accept

  • Number of Decimal Places – You can write as per your requirement. Here, we can write – 3 because liter has 3 decimals.

Now your screen shall appear as under:-


  • At last tally will ask you ‘Yes or No’. Select ‘Y’ if every thing is correct otherwise, select ‘N’ and correct the mistake instantly.


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