Glossary
What is a godown?
The Indian word for a warehouse, and what keeping stock by godown means for counts, transfers and GST.
Updated
In short
A godown is a warehouse or storeroom where a business keeps its goods. SimpleERP calls godowns warehouses and keeps quantities for each one, hidden until a second location is added.
A godown is a warehouse or storeroom where a business keeps goods, the word used across India and in Tally for any stock location. A business with more than one godown needs stock counted per godown, so it knows not only how many it has but where they are, and moves goods between godowns with a transfer rather than a sale.
Godown: a worked example
Lakshmi Steel keeps stock in two godowns: the Main godown at Peelamedu and a smaller Ukkadam store near its retail customers.
| Product | Main godown | Ukkadam store | Total | Average cost | Value |
|---|---|---|---|---|---|
| Steel rack 4 shelf | 52 | 18 | 70 | ₹3,170 | ₹2,21,900 |
| Office chair mesh | 16 | 8 | 24 | ₹4,850 | ₹1,16,400 |
| LED panel 2×2 | 170 | 30 | 200 | ₹1,145.60 | ₹2,29,120 |
| Cable tray 3 m | 150 | 0 | 150 | ₹1,020 | ₹1,53,000 |
FAQ
Questions, answered
Is a godown the same as a warehouse?
Yes. Godown is the everyday Indian word, used in Tally and on many GST documents. SimpleERP's screens say warehouse, but a godown, a shop's back room or a site store are all warehouses in the software.
Do I need to declare my godown under GST?
If goods are kept at a place other than your principal place of business, it should be added as an additional place of business on your GST registration. Check with your accountant; SimpleERP does not file registration changes.
How do I move goods between godowns?
Post a stock transfer from one godown to the other. Quantities move, the value moves at average cost, and no sale or purchase is recorded. A transfer note prints with prepared-by and received-by lines for the person carrying the goods.
Can each godown have its own stock value?
Quantities are per godown, and value per godown is quantity × the product's average cost. SimpleERP keeps one average per product for the whole business, so the same rack is worth the same in either godown.
Related
Keep reading
Stock transfer
Moving goods between two warehouses of the same business; quantities move, total value and the books stay the same.
Read moreStock valuation
Putting a rupee value on goods on hand with a costing method; the figure is the inventory asset and drives cost of goods sold.
Read moreInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
Read more
Run your whole business from one simple place.
Seven days free. No card. Your first GST invoice in minutes.