Managing multiple branches

First decision: how to structure the books

In Tally there are three common ways to keep books for branches. Your CA should help choose, especially where GST registration is involved.

Whatever you choose, use the same ledger names, item names and stock groups across branches. Mismatched names make consolidation painful.

GST points for branches

• A business needs a separate GST registration in each state where it makes taxable supplies from. A branch in another state means another GSTIN and its own returns.
• Moving stock between branches with different GSTINs is generally treated as a supply and needs a tax invoice, even though no outside customer is involved. See GST on stock transfer between branches.
• Moving stock between godowns under the same GSTIN is not a sale, but goods in transit still need a delivery challan and, where applicable, an e-way bill.

Rules here have nuances on valuation and credit; confirm your setup with your CA. This is general information, not tax advice.

Stock transfers without losing track

1. The sending branch raises a transfer document (stock journal or delivery note within the same company; tax invoice between GSTINs).
2. Goods travel with a delivery challan or invoice.
3. The receiving branch checks quantity on arrival and records receipt the same day.
4. Differences — short, damaged, wrong item — are reported within 24 hours and settled with a note, not left hanging.
5. Once a month, match transfers out from each branch with transfers in at the other. Goods in transit should be a short list.

Example: Branch A sends 120 cartons; Branch B records 118. Two cartons are either in transit, lost or miscounted. If nobody follows up, both branches' stock reports are wrong for the rest of the year.

Branch-wise profit: what to measure

Branch B has the better margin but barely covers its costs, and its debtors are close to two months of sales. The useful question is not which branch is bigger, but which one turns sales into cash.

People and permissions

• Branch manager: responsible for stock, cash and collections at that branch. Should see their branch, not necessarily the whole company's accounts.
• Accounts: either one central team entering for all branches, or a branch accountant with a central reviewer. Avoid having nobody responsible.
• Cash: each branch deposits cash to the bank daily or on fixed days, with a separate petty cash float. See petty cash management.
• Approvals: credit limits, discounts above a threshold and new parties approved centrally.

More on setting this up in delegating accounts work to staff.

The owner's daily branch check

• Sales and receipts at each branch yesterday, against the same day last month.
• Cash and bank balances per branch.
• Overdue customers above a set amount, branch by branch.
• Stock transfers sent but not yet received.
• Any unusually large discount, credit note or cancelled bill.

Ten minutes every morning on these five points does more than a long monthly meeting.

Running branches with Tally and Cashflow OS

If branches are separate Tally companies, Cashflow OS lets you add several companies to one account and switch between them on the phone or web app, with sales, receipts, cash, bank and outstanding for each. Roles are set per company — owner, admin, accountant, staff, salesperson — so a branch team sees its own company. The owner can see team activity. Reports export to Excel and PDF. See multi-company.