Go to Gateway of Tally > Inventory Info > Units of Measure > Create
The Unit Creation screen displays.
A brief explanation on each of the fields in Unit Creation screen follows.
Type
Symbols are of two types: Simple and Compound.
Simple units are considered as specified by you; Tally just checks for duplication. Tally defaults to Simple, and if you want to change to Compound, use [Backspace] to go back and select Compound from the Types of Units list.
Symbol
Define the symbol of the unit, e.g., Nos. This symbol is used in all displays and printouts.
Formal Name
Specify the formal name of the symbol, e.g. Numbers. This explains the symbol, which is also used during the consolidation of data of different companies, where the symbols might be the same but are assigned to different units. The formal name will be used to match them.
Number of decimal places
If you want to use the unit in fractions, say for a kilogram you may have to use grams as well, specify the number of decimal places. For kilograms, you would give three decimal places to accommodate up to 999 grams. You do not normally want a decimal place for units like numbers; you can specify 0 in such cases.
Note: You can specify 0 to 4 decimal places. The Unit of Measure cannot be translated or transliterated but will appear in the Language created.