MRP in Tally stands for Material Requirement Planning. It is an add-on module in Tally.ERP 9 and TallyPrime designed for production planning and inventory management in manufacturing organizations. The MRP module helps manage manufacturing processes by evaluating demand based on open sales orders, sales projections, pending purchase orders, minimum stock levels, and reorder points, all integrated with the Bill of Materials (BOM) for finished and semi- finished goods

. Key features and functions of MRP in Tally include:

• Providing a complete overview of stock availability of raw materials and generating indents for materials required for production based on sales orders

• Helping maintain optimal inventory levels by forecasting material requirements to avoid overstocking or understocking, thereby reducing storage costs and production delays

• Streamlining purchasing, inventory, and production scheduling activities to improve operational efficiency and profitability

• Generating production requirement reports and purchase requirement reports that assist in planning procurement and production schedules accurately

• Allowing users to enable and display Maximum Retail Price (MRP) details for stock items in invoices, which can also be configured for VAT calculations if needed

Overall, MRP in Tally is a comprehensive tool that integrates inventory data, sales orders, and production schedules to facilitate effective material planning, ensuring that the right materials are available at the right time for manufacturing processes