Finished Goods (Without BOM)
To create the stock item
Go to Gateway of Tally > Inventory Info. > Stock Item > Create
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In Name field enter the name of the stock item. E.g. Cooker 12Litre
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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)
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In Units field select the applicable unit of measurement. E.g. Nos
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Set the option Enable Cost Tracking to Yes
Note: ABC Company wants to track the cost of manufacture of Cooker 12Litre.

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Stock Item - If Excise Applicable
To create the stock item
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
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Enter the Stock Item Name, Group, Unit, Tariff Classification and enable Set/Alter Excise Details to Yes
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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.

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Finished Goods (with BOM)
For Stock Item - Cooker 10Litre Two Bill of Materials are used.
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)
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In Name field enter the name of the stock item. E.g. Cooker 10Litre
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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)
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In Units field select the applicable unit of measurement. E.g. Nos

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Setup:
In F12: Configure

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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.
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Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list.
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Item: In this field select the raw materials which are required to manufacture the finished goods
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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
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Type of Item: In this field select the appropriate type for the item selected.

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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.
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

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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.
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Press Enter to save the Stock Item components for BOM - Standard BOM and to view Stock Item Multi Component screen
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In Stock Item Multi Component screen enter the second Bill of Material name - Job Work BOM in Name of BOM field

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Note: ABC Company wants to track the cost of manufacture of Cooker 10Litre.
The completed Stock Item Creation screen is displayed as shown

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