A supplier rate comparison for the same item in Tally Prime starts with Stock Item Movement Analysis: it lists who you bought the item from and how much, and opening a supplier shows each voucher's basic rate and effective rate, the effective rate adding costs such as transport. It works one item at a time. Takkada's Supplier rate gap card lists every item bought from two suppliers at different rates, with the gap in rupees. The gap is usually small per unit and large per month, because it repeats on every tin or bag. The worked example below takes Exterior Emulsion 20 L in September 2026: 200 tins from Om Distributors at ₹412 and 150 from Navkar Agencies at ₹398, a gap of ₹2,800 for the month. It also covers cost creep, where one supplier's rate goes up quietly, and a short checklist for the next purchase order. Key paths are from TallyPrime's help, checked on 10 November 2026.
Key Highlights
- Stock Item Movement Analysis shows an item's suppliers; open a supplier for the basic and effective rate on each voucher.
- The gap that matters is the rate difference times the quantity you bought from the dearer supplier, here ₹14 × 200 tins = ₹2,800.
- Cost creep is the other half of the check: the same supplier, the same item, a higher rate than last period.
In This Article
- How to compare purchase rates of two suppliers in Tally
- What basic rate and effective rate mean
- A worked example: one item, two suppliers
- Cost creep: the same supplier at a higher rate
- Purchases by Item, supplier by supplier
- Before the next order
- Frequently Asked Questions
How to compare purchase rates of two suppliers in Tally
- Press Alt+G (Go To), type Stock Item Movement Analysis and press Enter.
- Pick the item from the list of stock items.
- Press F2 and set the period, for example September.
- Read the inwards side: each supplier and the value bought from them.
- Select a supplier and press Enter. Tally opens the item's vouchers with that party, with quantity and the basic and effective rate.
- Press F4 to move to the next item.
To start from the supplier instead, press Alt+G and open Ledger Analysis for the party. Tally's help describes it as the report to compare quantities bought from and sold to one party, with rates.
What basic rate and effective rate mean
The basic rate is the rate on the purchase invoice line. The effective rate, in Tally's words, includes additional cost such as transport charges on the transaction. Press F12 in the item's voucher analysis and set Show Additional Cost Details to Yes to see what was added. Compare suppliers on the effective rate when one delivers to your door and the other charges freight separately, and on the basic rate when both terms are the same.
A worked example: one item, two suppliers
A paint, hardware and sanitary distributor buys Exterior Emulsion 20 L from two suppliers. In September 2026:
| Supplier | Tins bought | Rate | Value |
|---|---|---|---|
| Navkar Agencies | 150 | ₹398 | ₹59,700 |
| Om Distributors | 200 | ₹412 | ₹82,400 |
| Total | 350 | ₹1,42,100 |
The rate gap is ₹412 − ₹398 = ₹14 a tin. On the 200 tins bought from the dearer supplier, that is ₹2,800 for the month. If the same pattern holds for a year, it is ₹33,600 on one item. Most owners keep both suppliers and take the Navkar rate into the next call with Om Distributors, or move more of the order to Navkar when both deliver on the same terms.
Takkada's Supplier rate gap card shows this row as Exterior Emulsion 20 L, Cheapest Navkar Agencies at ₹398, Dearest Om Distributors at ₹412, Qty from dearer 200, Gap ₹2,800. The card's headline adds up the gap across every item bought from more than one supplier in the period, ₹2,800 spread across 1 item in this example.
Cost creep: the same supplier at a higher rate
A second supplier makes a gap visible. A single supplier raising the rate a little every month does not, because there is nothing to compare against except last month. Tally's Movement Analysis shows it if you set two periods one after the other and read the rates. In Takkada, the Cost creep card in the same Insights tab lists items that cost more per unit than last period, with this period's average, last period's average, the quantity and the extra amount paid.
For example, Wood Glue 1 kg went from an average of ₹255 in August to ₹265 in September. On 120 pieces, that is ₹1,200 more paid than at August's rate. One such line is a conversation. Four of them in a month, which is what the card showed for this distributor, is a pattern worth raising at the next rate discussion.
Purchases by Item, supplier by supplier
Purchases by Item in Takkada shows what each item cost you, at what average rate, and the gap against your selling price, supplier by supplier. Goods you returned to suppliers (debit notes) are taken off Purchases by Item and shown in a Returns column. The figures come from your Tally, as of the last sync, and export to Excel or PDF. The party-wise item-wise sales report for Tally page shows both item reports, and the sales insights from Tally page shows the four purchase cards: Cost creep, Over-buying, Supplier rate gap and Dead stock. The cards are worked out when you open the tab. The rest of the reports are on the Tally reports on mobile page, and our purchase report on mobile post covers supplier-wise buying as a whole.
Before the next order
Run this check on the day you prepare the purchase order:
- Open the supplier rate gap list and start with the biggest rupee gap.
- For each item, note whether the cheaper supplier had stock and delivered on time last month.
- Read the cost creep list and mark items where the rate rose two months in a row.
- Check over-buying, so you do not lock in a better rate on stock you will not sell.
- Call the dearer supplier with the other rate in hand before you send the order.
Frequently Asked Questions
Q: How do I compare purchase rates of two suppliers in Tally?
A: Open Stock Item Movement Analysis for the item with Alt+G, set the period with F2, and select each supplier to see the vouchers with their basic and effective rate. It works one item at a time; press F4 to move to the next item.
Q: What is the effective rate in Tally Movement Analysis?
A: Tally's help defines the effective rate as the rate including additional cost, such as transport charges, on the transaction. The basic rate is the invoice rate. Press F12 and turn on Show Additional Cost Details to see what was added.
Q: How do I know which items cost more than last month?
A: In Tally, read Movement Analysis for each item over two periods and compare the rates. In Takkada, the Cost creep card lists every item that cost more per unit than last period, with the extra amount paid, such as ₹1,200 on 120 pieces of Wood Glue 1 kg.
Q: Does the rate gap include freight?
A: No. The Supplier rate gap card uses the purchase rate as Takkada reads it from your Tally. Freight and other charges are not added to it. Tally's effective rate in Movement Analysis is where transport costs added to the transaction show.
Takkada shows Purchases by Item and its Insights cards, including Supplier rate gap and Cost creep, from your Tally books on the phone and the web app. Message us on WhatsApp to see them on your own purchases.