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Opening balance control in Tally.ERP 9 helps to maintain real balance across the branches by choosing which opening balance to consider at the time of synchronising master data. The option to overwrite variations in the opening balance eliminates confusion with multiple opening balances and also improves inventory accuracy and management.
Let us consider a situation - you are a retailer of automobile parts in Delhi, selling 106 different items. You open a new branch office in Agra; since it is a new market you want to procure only 10 fast moving items from local distributors. After 8 months the branch office is performing well and it is time to expand the offering from 10 to all 106 items. Head office sends the list of all 106 items with an opening balance of 50 quantities of each of the items from Delhi as inventory for the Agra office. Since 10 items were already in stock with various quantities you do not want those to be overwritten by the opening balance sent from head office. This is now possible with a single setup of saying 'not to over-write' opening balance.