Stock Items - Finished Goods -JOB Work in Tally.ERP 9

Finished Goods (Without BOM)

To create the stock item

Go to Gateway of Tally > Inventory Info. > Stock Item > Create

• In Name field enter the name of the stock item. E.g. Cooker 12Litre

• Group the Stock item Under the Stock Group Pressure Cooker (if Stock group is not created use Alt + C from Under field to create the stock group)

• In Units field select the applicable unit of measurement. E.g. Nos

• Set the option Enable Cost Tracking to Yes

Note: ABC Company wants to track the cost of manufacture of Cooker 12Litre.

[Img-15]

• Press Enter to save.

Stock Item - If Excise Applicable

To create the stock item

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

• Enter the Stock Item Name, Group, Unit, Tariff Classification and enable Set/Alter Excise Details to Yes

• In Excise Details screen select Reporting UOM, enable Set/Alter Duty Details to select the duties applicable for the stock item and select the Stock Item Type - FinishedGoods.

[Img-16]

• Press Enter to save.

Finished Goods (with BOM)

For Stock Item - Cooker 10Litre Two Bill of Materials are used.

• The Standard BOM is used to manufacture the goods in House

• The Job Work BOM is used when the manufacture of goods is delegated to a Job Worker.

Tally.ERP 9 Release 3.0 allows to create multiple BOM for a stock item which can be used for material issue for production.

Note: A Bill of Materials is a list of constituent items along with quantity details that can be allocated for the manufacture of a certain product, by-productor Co-Product.

To create the stock item

Go to Gateway of Tally > Inventory Info. > Stock Item > Create

Setup:

In F12: Configure (Stock Item Configuration)

• Set the option Allow Component list details (Bill of Material) to Yes

• In Name field enter the name of the stock item. E.g. Cooker 10Litre

• Group the Stock item Under the Stock Group Pressure Cooker (if Stock group is not created use Alt + C from Under field to create the stock group)

• In Units field select the applicable unit of measurement. E.g. Nos

• Enable the option Set Components (BOM) to Yes and press enter to view Stock Item Multi  Components (M BOM)

• In Stock Item Multi Components (M BOM) screen

• In Name of BOM field specify the Bill of Material Name. E.g. Standard BOM. Press Enter to view Stock Item Components (BOM) screen for Standard BOM

[Img-17]

• In Stock Item Components (BOM) screen

Setup:

In F12: Configure

• Set the option Define Type of Component of BOM to Yes

[Img-18]

Note: On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new column Type of Item will be displayed.

• Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list.

• Item: In this field select the raw materials which are required to manufacture the finished goods

• Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. E.g Raw Material Location

• Type of Item: In this field select the appropriate type for the item selected.

[Img-19]

Note: Tally.ERP 9 displays 4 Type of Items for selection

* By-Product: Select this classification for the stock items which are produced as By-Product of finished goods.

* Component: Select this classification for the Raw materials /inputs which are used or consumed for the production of finished goods.

* Co-Product: Select this classification for the stock items which are produced as Co-product of finished goods

* Scrap: Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.

• Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Products/ By-Products /scrap manufactured.  Cursor will not move to Rate (%) column when the Item Type selected is Consumption.

• Rate (%): In this field you can specify the percentage of cost of components to be considered to determine the cost of production of Co-Product or By-Product or Scrap.

If the Component Type selected is Co-product or By-Product or Scrap, cursor will move to Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap

The completed Stock Item Components (BOM) screen is displayed as shown

[Img-20]

Observe to manufacture 1 Pressure Cooker, 5 different inputs are required and while manufacturing Aluminium scrap will be produced. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.

• Press Enter to save the Stock Item components for BOM - Standard BOM and to view Stock Item Multi Component screen

• In Stock Item Multi Component screen enter the second Bill of Material name - Job Work BOM in Name of BOM field

[Img-21]

• In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown

[Img-22]

• Press Enter to save the Stock Item Components (BOM) and Stock Item Multi Components (M BOM)

• Set the option Enable Cost Tracking to Yes

Note: ABC Company wants to track the cost of manufacture of Cooker 10Litre.

The completed Stock Item Creation screen is displayed as shown

[Img-23]