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Lesson 33 of 48 – Price List
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💲 Price List in Tally Prime

A Price List is used to maintain predefined purchase prices and selling prices for Stock Items. It helps businesses automatically apply the correct price while recording Purchase and Sales vouchers.

Lesson Objective Learn how to create Price Levels and Price Lists, define item-wise rates, maintain effective dates and automate pricing in Tally Prime.
1. What is a Price List?

A Price List stores predefined rates for Stock Items. Instead of entering prices manually every time, Tally automatically picks the rate based on the selected Price Level.

Stock Item Price
Dell Laptop ₹55,000
HP Printer ₹12,500
USB Keyboard ₹650
Wireless Mouse ₹850
LED Monitor ₹9,800
2. Why is Price List Important?
  • Automatically applies predefined prices.
  • Reduces manual data entry.
  • Maintains pricing consistency.
  • Supports multiple customer price levels.
  • Helps avoid pricing mistakes.
  • Saves time during voucher entry.
  • Supports wholesale and retail pricing.
  • Improves billing accuracy.
Price Lists are especially useful for businesses that sell the same products at different prices to different customer groups.
3. Price Level vs Price List
Price Level Price List
Defines the customer pricing category. Stores item-wise prices.
Example: Retail Dell Laptop = ₹55,000
Example: Wholesale Dell Laptop = ₹52,000
Assigned to Ledgers. Assigned to Stock Items.
A Price Level identifies who gets the price, while the Price List defines what the price is.
4. Example of Multiple Price Levels
Price Level Dell Laptop Wireless Mouse
Retail ₹55,000 ₹850
Wholesale ₹52,000 ₹780
Dealer ₹50,500 ₹730
Different customer categories can purchase the same product at different prices using Price Levels.
5. Price List Workflow
  1. Enable Price Levels.
  2. Create Price Levels.
  3. Create Stock Items.
  4. Enter item-wise prices.
  5. Assign Price Level to customer ledger.
  6. Create Sales Voucher.
  7. Tally automatically applies the predefined rate.
  8. Verify invoice and reports.
Price Lists improve billing speed, pricing consistency and customer-specific pricing management.
6. How to Enable Price Levels & Price Lists

Before using Price Lists, you must enable the Price Levels feature in Tally Prime.

Steps
  1. Open Tally Prime.
  2. Press F11 (Features).
  3. Select Inventory Features.
  4. Enable Use Multiple Price Levels.
  5. Press Ctrl + A to Save.
After enabling this feature, you can create multiple Price Levels and maintain separate Price Lists for different customer categories.
7. Creating Price Levels

Price Levels allow businesses to charge different prices to different types of customers.

Steps
  1. Go to Gateway of Tally → Create.
  2. Select Price Levels.
  3. Enter the Price Level Name.
  4. Save using Ctrl + A.
Example Price Levels
Price Level Customer Type
Retail Regular Customers
Wholesale Bulk Buyers
Dealer Authorized Dealers
Distributor Regional Distributors
Each customer ledger can be linked to a specific Price Level so that the correct selling price is selected automatically.
8. Creating Item-wise Price Lists & Effective Dates

After creating Price Levels, define item-wise rates and their effective dates.

Stock Item Price Level Rate Effective From
Dell Laptop Retail ₹55,000 01-04-2026
Dell Laptop Wholesale ₹52,000 01-04-2026
Wireless Mouse Dealer ₹730 01-04-2026
Benefits of Effective Dates
  • Schedule future price changes.
  • Maintain price history.
  • Automatically apply the correct rate based on the voucher date.
  • Avoid manual price updates during seasonal offers.
Tally automatically applies the applicable price based on the voucher date and selected Price Level.
9. Display, Alter & Delete Price Lists
Action Purpose
Display View existing Price Lists.
Alter Update item prices.
Delete Remove unused Price Lists.
Price Level Report View rates assigned to each Price Level.
Navigation
  1. Gateway of Tally → Alter
  2. Select Price List or Price Levels.
  3. Select the required record.
  4. Modify the details.
  5. Press Ctrl + A to Save.
Avoid deleting Price Lists that are already being used in transactions. Instead, update rates using a new effective date.
10. Common Mistakes While Using Price Lists
Common Mistake Correct Practice
Not enabling Price Levels. Enable the feature before creating Price Lists.
Assigning the wrong Price Level to a customer. Verify the customer's assigned Price Level.
Entering incorrect item rates. Double-check prices before saving.
Ignoring Effective Dates. Use effective dates for every price revision.
Creating duplicate Price Levels. Maintain one Price Level for each customer category.
Updating old prices directly. Create a new effective date instead of overwriting history.
Not reviewing Price Lists regularly. Periodically verify prices with the latest business policy.
Using the same price for all customer types. Create separate Price Levels where different pricing is required.
Proper Price List management improves billing accuracy, customer satisfaction and pricing consistency.
11. Real Business Case Studies

Let's understand how different businesses use Price Levels and Price Lists to simplify pricing and improve billing accuracy.

Business Price Level Example
Retail Shop Retail All customers pay the standard selling price.
Wholesale Business Wholesale Bulk buyers receive discounted rates.
Electronics Store Dealer Authorized dealers receive special prices.
Medical Store Distributor Distributors purchase medicines at lower rates.
Garment Store Festival Offer Seasonal promotional prices apply automatically.
Computer Shop Corporate Corporate customers receive contract pricing.
Using Price Lists eliminates manual price selection and reduces billing errors.
12. Price Level vs Price List vs Standard Price
Price Level Price List Standard Price
Customer Category Item-wise Rate Default Item Price
Retail Dell Laptop = ₹55,000 ₹56,000
Wholesale Dell Laptop = ₹52,000 Same for all if no Price List is used
Dealer Dell Laptop = ₹50,500 General Selling Price
Assigned to Ledger Assigned to Stock Item Maintained in Stock Item Master
Easy Trick
  • 👥 Price Level = Customer Type
  • 💲 Price List = Price for Each Item
  • 🏷️ Standard Price = Default Selling Price
13. Professional Pricing Management Tips
  • Create meaningful Price Levels such as Retail, Wholesale and Dealer.
  • Assign every customer to the correct Price Level.
  • Use Effective Dates instead of editing old prices.
  • Review selling prices regularly based on market conditions.
  • Maintain separate purchase and sales prices where required.
  • Test Price Lists before using them in live transactions.
  • Avoid duplicate Price Levels.
  • Verify automatic pricing during voucher entry.
  • Keep pricing policies consistent across branches.
  • Take regular backups before making major price revisions.
Professional businesses maintain separate Price Levels for Retail, Wholesale, Dealers, Corporate Customers and Online Sales to ensure accurate and consistent pricing.
14. Practical Exercise & Interview Questions
Practical Exercise
  1. Enable the Multiple Price Levels feature.
  2. Create Price Levels named Retail, Wholesale and Dealer.
  3. Create a Stock Item named Dell Laptop.
  4. Enter separate selling prices for each Price Level.
  5. Assign the Wholesale Price Level to a customer ledger.
  6. Create a Sales Voucher for the customer.
  7. Verify that Tally automatically applies the correct selling price.
  8. Update the Price List using a new Effective Date and test it again.
Interview Questions
  1. What is a Price List in Tally Prime?
  2. Why is a Price List used?
  3. What is a Price Level?
  4. How do you enable Price Levels?
  5. What is the difference between a Price Level and a Price List?
  6. Can one Stock Item have different selling prices?
  7. How do Effective Dates work in Price Lists?
  8. Can a customer have a separate Price Level?
  9. How do Price Lists reduce billing errors?
  10. Can Price Lists be altered?
  11. Can Price Lists be deleted?
  12. What is Standard Price?
  13. Why should duplicate Price Levels be avoided?
  14. How do Price Lists help wholesale businesses?
  15. Can different branches use different Price Levels?
  16. Which reports help verify Price Lists?
  17. What precautions should be taken before updating prices?
  18. How do Price Lists improve customer service?
  19. How does Tally automatically apply prices?
  20. Why are Price Lists important in Tally Prime?
15. Lesson Summary
  • Learned the purpose of Price Lists.
  • Enabled Multiple Price Levels.
  • Created customer-specific Price Levels.
  • Maintained item-wise selling prices.
  • Used Effective Dates for future pricing.
  • Compared Price Level, Price List and Standard Price.
  • Studied real business examples.
  • Completed practical exercises.
  • Prepared for accounting interviews.
  • Improved pricing and billing management skills.
Congratulations! You can now confidently use Price Levels and Price Lists in Tally Prime to automate pricing, reduce billing errors and manage customer-specific rates efficiently.

🧠 Quick Quiz

What is the main purpose of a Price Level in Tally Prime?



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