job work in & out

8/3/2019 job work in & out

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Job Work Process in tally .ERP 9

In Tally.ERP 9, Job Work feature can be enabled from F11: Features.

Go to Gateway of Tally > F11: Features > Inventory Features

Set Allow Job Order Processing to Yes On enabling Allow Job Order Processing option, UseMaterial In/Out will set

to Yes automatically.

Set the option Track Stock Item Cost to Yes

1. Allow Job Order Processing: On enabl ing this feature, in Gateway of Tally under the head

Transactions a new option Order Vouchers wil l be displayed and 2 order vouchers, Job Work In

Order an d Job Work Out Order wil l get enabled.

2. Use Material In/Out: Set this option to Ye s, to create Material In/Out entries. On enabl ing thisoption Tw o Inventory Vouchers - Material In and Material Out wil l be avai lable to record the material

transfers.

Us e Material In/Out option is associated with Job order Processing. Hence the option gets enabled

automatical ly when Al low Job Order Processing feature is enabled and cursor wi l l not move to Use

Material In/Out option to change the settings.

Even though the option Use Material In/Out is associated with Job order Processing Tal ly.ERP 9 gives

the flexibi l i ty to enable only Material Transfer In/Out feature without enabl ing Al low Job Order

Processing. Use Material In/Out feature can be enabled where the user wants to use Material Transfer

vouchers for any other purpose than Job Work. Example: Material Transfer vouchers used for tr ansfer

of stock to Consignment Agent, Branch, inter- odown transfers etc

3. Track Stock Item Cost : Set this option to Ye s, i f you want to track the cost of stock item from

purchase of stock ti l l sale. On enabl ing this option in Stock Item master Enable Cost Tracking f ield

wil l be displayed.


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Job Work - Excise Applicable

Many manufacturing industries fall under the purview of Excise. If PrincipalManufacturer who is delegating a Job or Job Worker who is receiving Job are registeredunder excise to generate statutory Form & Reports have to enable Excise Feature inTally.ERP 9.

To enable excise refer the topicEnabling Excise in Tally.ERP 9for more details.

Create Godowns

Godown is a place where stock items are stored. Pigeon Home Appliances stores rawmaterials and finished goods in different godowns.

Company also want to track the goods sent out for Job Work and material received for Jobwork by creating different locations.

When different locations are maintained to track the goods sent or received for Job WorkPigeon Home Appliances has the following requirements

When the goods are sent out for Job work, the quantity of stock item and stockvalue should not be reduced form the books of accounts as the company has theownership on the goods transferred.

When goods are received for Job work, the stock should not affect the books ofaccount of Job Worker.

Tally.ERP 9 allows to create godowns to meet all the above requirements

Raw Material Location

This godown is created to store the Raw Materials purchased
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To create the Godown

Go to Gateway of Tally > Inventory Info. > Godowns > Create

Name: In this field enter the Name of the Godown. E.g. Raw Material Location Under: In this field select Primary Our Stock with Third Party: Set this option to No. Third Party stock with us: Set this option to No.

Press Enter to save.Note:Use for section in Godown Creation or Alteration is provided inTally.ERP 9 Release 3.0 where users can create the godowns to store

without affecting the stock valuation:The stock of the company lying with third party like Consignment agent,Bonded Ware house, Job worker etc.Or Third Part y stock ly ing with the company in case company has receivedthe stock for Job Work or acting as consignment agent or for any otherreason.

* Our Stock with Third Party: Set this option to Yes if the godown isused to account the company's goods lying with the third party.* Third Party Stock with us: Set this option to Yes if the godown createdis used to account the goods received from third party and the stock of

third party should not affect the company stock value.

Create the godowns as per the details given in the table

Godown Under Our Stock WithThird Party

Third Party Stockwith us

Finished GoodsLocation

Primary No No

Scrap Location Primary No No

JobWork (Out) Location


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This godown is created to account the goods lying with the Job Workers (third party)



Name: In this field enter the Name of the Godown. E.g. JobWork (Out) Location Under: In this field select Primary Our Stock with Third Party: Set this option to Yes.

Note: On enabling the Use for option Our Stock with Third Party cursorwill not move to Third Party Stock with Us field. Hence a godown can beconfigured to use the godown for any one purpose.

Press Enter to save.JobWork (In) Location

This godown is created to account the goods received from the principal manufacturer forJob Work.



Name: In this field enter the Name of the Godown. E.g. JobWork (In) Location Under: In this field select Primary Our Stock with Third Party: Set this option to No. Third Party stock with us: Set this option to Yes.


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Press Enter to save.Create Godowns - If Excise Applicable

Tally.ERP 9 allows to create and maintain multiple Excise Units in a Single company. Theexcise Units created will be considered as Godowns.

When Excise feature is enabled, the other godowns required for storing the Raw Material,Finished Goods, Scrap, Our stock lying with Third Party or Third party stock lying with usneeds to be created as sub-godowns ofExciseUnit.

Raw Material Location

Go to Gateway of Tally > Inventory Info. > Godowns / Excise Units > Create

Name: In this field enter the Name of the Godown. E.g. Raw Material Location Under: In this field select ABC Company Excise Registration Type: Select Not Applicable. Our stock with Third Party: Set this option to No Third Party stock with us: Set this option to No


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Similarly, create other godowns as per the details given in the table

Godowns Under ExciseRegistrationType

OurStockWith

ThirdParty

ThirdPartyStock

withus

FinishedGoodsLocation

ABCCompany

NotApplicable

No No

ScrapLocation

ABCCompany

NotApplicable

No No

JobWork(Out)Location

ABCCompany

NotApplicable

Yes No

JobWork

(In)Location

ABC

Company

Not

Applicable

No Yes


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Voucher Types - Material Out and In

To record the material transfer transaction in Tally.ERP 9 Two new Inventory VoucherTypes have been provided.

Material Out/In vouchers will be available under Inventory Vouchers only when theoption Use Material In/Out is set to Yes. Use Material In/Out option is associated withJob order Processing.

Even though the option Use Material In/Out is associated with Job order Processing

Tally.ERP 9 gives the flexibility to enable only Material Transfer In/Out feature withoutenabling Allow Job Order Processing to use the Material Transfer vouchers for any otherpurpose than Job Work

Example: Material Transfer vouchers used to transfer stock to Consignment Agent,Branch, Inter-godown transfers etc.

MaterialOut: This voucher type can be used to record the material transfer out(of Raw materials or Finished Goods) transactions.

In case of Job Work - Material Out voucher can be used by the Job Worker as wellas Manufacturer

o Principal Manufacturer: Can use this Voucher to transfer the Raw Materialsto the Job Worker

o Job Worker: Can use this voucher to transfer the Finished goods to theprincipal Manufacturer

Material In: This voucher type can be used to record the material transfer In (ofRaw materials or Finished Goods) transactions.

In case of Job Work - Material In voucher can be used by the Job Worker as well asManufacturer

o Principal Manufacturer: Can use this Voucher to record the receipt ofFinished goods/ Scrap/By-Product/Co-Product from he Job Worker. In thisvoucher Principal Manufacturer can also track the components used (ownconsumption like- wax, screw etc.) by the Job Worker

o Job Worker: Can use this voucher to account the receipt of Raw materialfrom the Principal Manufacturer.

In real Business scenario a party may be acting as Principal Manufacturer as well as JobWorker. In that case he may require

Material Out vouchers to account transfer - Raw materials and FinishedGoods

Material In voucher to account the receipt - Finished Goods and Rawmaterials.


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Here, ABC Company is delegating Job to a Job Worker and also ReceivesJob from otherPrincipal Manufacturers. Hence to account all the material transfer (In & Out) relatedtransactions Four new voucher types are created.

Note: If a party is acting as Principal Manufacturer as well as JobWorker, then it is must to maintain separate set of Material In/Out

vouchers for Job Work Out and Job Work In Processes.

1. Voucher Type - Material Out (RM)

This voucher Type will be used by the Principal Manufacturer in Job Work Out processfor recording the Transfer of Raw Materials to the Job Worker.

To create the voucher type

Go to Gateway of Tally > Accounts Info. > Voucher Types > Create

In Name field enter the name of the Voucher Type. E.g. Material Out (RM)

In Type of Voucher field select Material Out from the List of Voucher Types Select Automatic in Method of Voucher Numbering field. Retain the default setting for other options Set the option Use for Job Work to YesNote:1. Use for Job Work option will be displayed in Material Out vouchertype when the option Allow Job Order Processing is set to Yes in F11:Features (Inventory Features) .

2. Set the option Use for Job Work to Yes if you want to use the vouchertype to record Job work transactions.

Retain No for the option Use for Job Work InNote: Set the option Use for Job Work In to Yes if the Job Worker wantsto use the MaterialOut voucher type to record the transfer (out) ofFinished goods/ scrap/ Co-product/By-Products.


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The completed Material Out (RM) voucher type is displayed as shown

Press Enter to save.2. Voucher Type - Material Out (Transfer/FG)

This voucher Type will be used by the JobWorker in Job Work In process for recording theTransfer of Finished Goods, Scrap, By-Products, Co-Products to the PrincipalManufacturer.



In Name field enter the name of the Voucher Type. E.g. Material Out(Transfer/FG)

In Type of Voucher field select Material Out from the List of Voucher Types Select Automatic in Method of Voucher Numbering field. Retain the default setting for other options Set the option Use for Job Work to Yes Set the option Use for Job Work In to Yes


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Note: Set the option Use for Job Work In to Yes if the Job Worker wantsto use the MaterialOut voucher type to record the transfer (out) ofFinished goods/ scrap/ Co-product/By-Products.

The Completed Material Out (Transfer/FG) voucher type is displayed as shown

Press Enter to save.3. Voucher Type - Material In (RM)

This voucher Type will be used by the Job Worker in Job Work In process for recording theReceipt of Raw Materials from the Principal Manufacturer.



In Name field enter the name of the Voucher Type. E.g. Material In (RM) In Type of Voucher field select Material In from the List of Voucher Types Select Automatic in Method of Voucher Numbering field. Retain the default setting for other options Set the option Use for Job Work to Yes Set the option Use for Job Work In to Yes

The completed Material In (RM) voucher type is displayed as shown


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Press Enter to save.Note: While creating Job Work In voucher type to account the receipt ofRaw Materials by the Job worker, if the option Use Job work In is set toYes Tally.ERP 9 will skip Allow Consumption field.

4. Voucher Type - Material In (FG)

This voucher Type will be used by the Principal Manufacturer in Job Work Out processfor recording the Receipt ofFinished Goods, Scrap, By-Products, Co-Products from theJob Worker.



In Name field enter the name of the Voucher Type. E.g. Material In (FG) In Type of Voucher field select Material In from the List of Voucher Types Select Automatic in Method of Voucher Numbering field. Retain the default setting for other options Set the option Use for Job Work to Yes Set the option Use for Job Work In to No Set the option Allow Consumption to YesNote:1. Enable the option Allow Consumption in Material In voucher types,

when the voucher type is used by the PrincipalManufacturer to accountthe receipt of Finished Goods from the Job Worker.


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2. When Allow Consumption is set to Yes, on recording the Material Invoucher the Raw Materials used in the manufacture of Finished goodswill be considered as Consumed and to that extent the stock will bereduced from the books of accounts.

The completed Material In (FG) voucher type is displayed as shown

Press Enter to save.

Create Material In/out Voucher Types - if Excise Applicable

1. Voucher Type - Material Out (RM)



In Name field enter the name of the Voucher Type. E.g. Material Out (RM) In Type of Voucher field select Material Out from the List of Voucher Types Select Automatic in Method of Voucher Numbering field. Retain the default setting for other options Set the option Use for Job Work to Yes Retain No for the option Use for Job Work In Set the option Use for Excise to Yes In Default Excise Unit fieldselecttheExcise unit - ABC Company


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Note: Set the option Use for Job Work In to Yes if the Job Worker wantsto use the MaterialOut voucher type to record the transfer (out) ofFinished goods/ scrap/ Co-product/By-Products.

The completed Material Out (RM) voucher type is displayed as shown

Similarly, create all the Material Out/In voucher type if excise applicable.

Job Work Out Order (for a Stock Item without BOM)

In business scenario a manufacturer who wants to delegate the manufacturing Job to anexternal manufacturer (Job Worker), first identifies the Job workers who have specialisationin the Job which needs to be delegated. Then compares the cost of manufacture by differentJob Workers and finally decides on the Job Worker to whom the job to be delegated basedon cost of Manufacture, Quantity of Manufacturer etc.

After deciding the Job Worker Principal manufacturer raises the Job Work Out Order byspecifying the details of Finished Goods to be manufactured and expected Quantity of

Finished Goods, Raw material to be supplied by the Principal Manufacturer, Date ofDelivery of Raw Materials (if delivered in installments) etc.

In Tally.ERP 9 users can record Job Work Out Orders using Job Work Out Order voucher.

under this we will learn to record a Job Work Out Order for a stock item for which Bill ofMaterial (BOM) is not created and all the material required will be delivered at once.

Example: On 4-12-2010, ABC Company delegated the Job of Manufacture of 500 nos of12Litre Cooker to Mega Manufacturers. To manufacture of 12 Litre Cookers following Raw

Materials will be supplied by ABCCompany.

Raw Materials Quantity


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Bottom Plate-12Ltr 500 (Nos)

Lid Aluminium Plate-12 Ltr

500 (Nos)

Handle (8 Ltr 1000(Nos)

Packing Box (12 Ltr) 500 (Nos)Hand Book 500 (Nos)

The following scrap produced will be returned to the Principal Manufacturer

Scrap Quantity

Aluminium Scrap 25000

(GM)

1. Record the Transaction in Job Work Out Order

To record the Job Work Out Order

Go to Gateway of Tally > Order Vouchers > J: Job Work Out Order

1. Enter the Date as 4-12-20102. Party A/C Name: In this field select the Job Worker ledger on whom the Job

Work Out Order is raised. E.g. Mega Manufacturers.

3. In Party Details screen, under Process Instruction section specify the durationof Process and Nature of Process to be carried out.

Duration of Process: In this field enter the duration of the manufacture offinished goods. i.e. within how many days/months etc. the process to be

completed and goods to be delivered.

Nature of Processing: In this field specify the details of nature of process(process Instruction) to be carried out to manufacture the expected finishedgoods.


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Note:1. The Party Details screen will be displayed while recording Job Work

Order only if the option Accept Supplementary Details option is set toYes in Job Work Out OrderConfiguration.

2. Providing details in Duration Of Process and Nature of Processing inJob Work Out Order is not Mandatory. However while transferring the

goods to the Job Worker it is must to define the Nature of Processing.When material transfer out are recorded by tracking the Job work OutOrder then Duration and Nature of Processing details will get captured

automatically.

Press Enter to accept the PartyDetails screen.3. Order No: In this field enter the Job Work Out Order Number. E.g. Job - 001

4. Name of Item: In this field select the stock Item i.e. Finished Goods tobe manufactured by the Job Worker. E.g. Cooker 12 Litre. Press Enter to

view Stock Item Allocations screen


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In Stock Item Allocation screeno Item Allocation for: By default the stock Item selected in the Job Work Out

Order will be displayed, indicating that the item allocation is for the selecteditem.

o For Order Number: By default the Job order specified in the Job Work OutOrder will be displayed indicating that the item allocation is for the job orderspecified.

o Track Components: By default this field will be set to Yes. If the PrincipalManufacturer wants to track the raw materials used in the manufacture of

finished goods retain the Setting as Yes.

Note: In case the Manufacturer does not want to track the Raw materialsthen set the option Track Components to No . When this option is set toNo , Tally.ERP 9 will not display the Component Allocation Screen.

o Due On: In this specify the Date on which the delivery of Finished Goods isdue. In this case ABC Company has accepted the manufacturing Duration of

30 Days (from the day of delivery of raw materials). Hence the 200 Nos ofCooker 8 Litre will be due on 6-1-2011

Note: If the Principal Manufacturer has agreed for the delivery offinished goods in Installments the user can define multiple Due on datewith Quantity of delivery.

Example: 500 Nos on 20-12-2010 and 500 Nos on 6-1-2011

o Godown: In this field select the Godown where the finished goods will bestored on Receipt of the same from the job Worker. E.g. Finished GoodsLocation

oQuantity: Specify the Quantity of finished goods to be received from the JobWorker.


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o Press enter from Quantity field to view Components Allocation screen In Components Allocation Screen

Note:1. ComponentAllocation screen wi l l be displayed only when the option Track Components is set to

Ye s in Stock Item Allocation screen.

2. The Finished goods for which Job Work order is raised does not have the Bill of Material (BOM) then in Component Allocation screen, Tal ly.ERP 9 wi l l skip Fill Component using f ield and cursor

wil l be displayed in Name of Item f ield indicating that the Raw Materials required for the

manufacture of Finished goods has to be selected from the List of Stock Items.

o Name of Item: Select the Raw materials required to manufacture the finished Goods. E.g.Bottom Plate-12Ltr

o Track: In this field select Pending to Issue from the Type of Component list as the Rawmaterials are pending for issue to the Job Worker.

Note: Based on the Job Work Order Tally.ERP will highlight theappropriate Type of Component.* For Job Work Out Order - Pending to Issue will be highlighted


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o Due on: In this field specify the date on which the Raw materials will bedelivered to the Job Worker Location. By default the Voucher Date will bedisplayed in this filed. if the Delivery Date is different than the voucher datespecify the correct Due on date. Here, ABC Company is delivering the Rawmaterials on 6-12-2010.

Note: If the Job Worker has agreed for the delivery of raw materials inInstallments then user can define multiple Due on date with Quantity ofdelivery.

Example: 100 Nos on 6-12-2010 and 900 Nos on 7-12-2010

o Godown: In this field select the godown from where the Raw materials will bedelivered to the Job Worker.

o Quantity (Actual): In this section specify the Quantity of Raw material to beissued.

Note: Cursor will not move to As per BOM field when the BOM is not

selected in Fill Component using field.

o Rate: In this field specify the Rate ofRaw material consumed for themanufacture of finished goods.

o Similarly, select all the Raw materials to be issued towards the Job workOut Order.

o In the process of Manufacture ofCooker 12Litre, Aluminium Scrap isproduced. Under Name of Item select Aluminium Scrap and in Track fieldselect Pending to Receive as the scrap has to be received form the JobWorker along with the Finished goods.

Note: While recording the Job Work Out Order users can also track theScrap, By-Products or Co-products produced during the manufacture of

FinishedGoods.


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o In Due On field specify the Date on which the scrap will be received, Here,principal manufacturer is receiving the scrap along with the Finished Goodson 6-1-2011.

o In Godown field select the Godown where the scrap will be stored. E.g ScrapLocation

o In Quantity (Actual) field specify the Quantity of scrap to be received. e.g.25,000 Gm

The completed Components Allocation screen is displayed as shown

o Press Enter to accept the Component Allocation screen and to view StockItem Allocation screen

In Stock item Allocation screeno Rate: In this field specify the Rate of Finished goods. E.g. 1760 (based on

the raw materials supplied to the job worker)

o Amount: Will be calculated and displayed automatically.o Cost Tracking To: In this field select New Number and specify the Cost

Tracking Number


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Note: ABC Company wants to track t he total cost incurred for the manufacture of 12 liter Cooker fo r

the Job -001 delegated to Mega Manufacturer.

The completed Stock Item Allocation screen is displayed as shown

Press Enter to save the Item Allocation screen.The completed Job Work Out Order is displayed as shown


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5. Press Enter to save.

The details of Job Work Out Order details can be viewed in

Job Work Out Orders Book Order Outstandings

To view the Job Work Out Orders Book

Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Job Work Out OrdersBook

Job Work Out Order (for Excise Stock Item)

When the Job work order of excise stock items are given, to capture the transaction detailsin excise reports the Job work out orders have to be recorded in excise voucher types.

Step 1: Alter Job Work Out Order Voucher Type

Go to Gateway of Tally > Accounting Info. > Voucher Types > Alter > Job Work OutOrder

Tab Down to Use for Excise field and set this option to Yes


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In Default Excise Unit field select ABC Company from the List of Excise Units.

Step 2: Record the Transaction in Job Work Out Order (We will record the transaction for the example givenabove)


1. Enter the Date, Select the Job Worker ledger and in Party Details screen specify the ProcessInstruction - Duration of Process and Nature of Processing

Note: Providing details in Duration Of Process and Nature of

Processing in Job Work Out Order is not Mandatory. However while


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transferring the goods to the Job Worker it is must to define the Durationof Process and Nature of Processing.

When material transfer out are recorded by tracking the Job work OutOrder then Duration and Nature of Processing details will get capturedautomatically.

2. Enter the Job Order Number - Job Ex - 001. Under Name of Item, select theFinished Goods to be manufactured by the Job Worker. E.g. Cooker 12 Litre.

3. In Stock Item Allocation screen Set Track Components to Yes Due On: In this specify the Date on which the delivery of Finished Goods is due.

Example 6-1-2011

Godown: In this field select the Godown where the finished goods will be storedon Receipt of the same from the job Worker. E.g. Finished Goods Location

Quantity: Specify the Quantity of finished goods to be received from the JobWorker. E.g. 1000 U. Press enter from Quantity field to view ComponentsAllocation screen

In Components Allocation Screen, select the Raw materials to be issued andScrap to be received.

In Stock item Allocation screen, specify the Rate Rs.1760 Amount will be calculated and displayedautomatically.

o Cost Tracking To: In this field select New Number and specify the tracking Number -JobEx Out - 001


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The completed Job Work Out Order is displayed as shown

Job Work Out Order (for a stock Item with BOM)

Under this we will learn to record a Job Work Out Order for a stock item for which Bill ofMaterial (BOM) is created and all the material required will be delivered at once.

Example: On 6-12-2010, ABC Company delegated the Job of Manufacture of 200 nos of10Litre Cooker to National l Manufacturers. To manufacture of 10 Litre Cookers RawMaterials will be supplied by ABC Company using the JoB Work BOM.

Record the Transaction in Job Work Out Order



Work Out Order is raised. E.g. Global Manufacturers.

3. In Party Details screen, under Process Instruction section specify the Durationof Process and Nature of Process to be carried out.


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4. Order No: In this field enter the Job Work Out Order Number. E.g. Job - 0025. Name of Item: In this field select the stock Item i.e. Finished Goods to bemanufactured by the Job Worker. E.g. Cooker 10Litre. Press Enter to view Stock Item

Allocations screen

6. In Stock Item Allocation screen Track Components: By default this field will be set to Yes. If the Principal

Manufacturer wants to track the raw materials used in the manufacture offinished goods retain the Setting as Yes.

Due On: In this specify the Date on which the delivery ofFinished Goods isdue. In this case ABC Company has accepted the manufacturing Duration of 45Days. Hence the 200 Nos of Cooker 10Litre will be due on 21-1-2011


Quantity: Specify the Quantity of finished goods to be received from the JobWorker. Press enter from Quantity field to view Components Allocation screen

In Components Allocation Screeno Fill Components using: In this field by default the BOM created for thefinished goods will be displayed.

If multiple BOMs are created then Tally.ERP 9 will display the First BOM of theItem. Based on the BOM displayed the Raw materials pending for issue and By-Products/Co-products/ Scrap receivable will be displayed.

If users are issuing raw materials based on different BOM then select theappropriate BOM in this field. Here, ABC Company are issuing the Raw materialsse per Job Work BOM. On selection of applicable BOM the items will be displayedwith the Quantity required to manufacture 200Nos of pressure Cooker 10Litre.


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Observe, when the BOM is selected by default the voucherdate will be displayed as the Due on date for Rawmaterials and for By-Products/Co-products/Scrap the due date specified for the Finished goods will bedisplayed. When BOM is selected the Quantity As per BoM will be displayed automatically

In Component Allocation screen, if the Raw material Due date is different then alter the same.The completed ComponentAllocation screen is displayed as shown

In Stock item Allocation screen


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o Rate: In this field specify the Rate of Finished goods. E.g. 1585o Amount: Will be calculated and displayed automatically.o Cost Tracking To: Select NewNumber and specify the tracking number as JobOut - 002





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4. Press Enter to save. Job Work Out Order (for a stock Item with BOM)Under this we will learn to record a Job Work Out Order for a stock item for which Bill ofMaterial (BOM) is created and all the material required will be delivered at once.

Example: On 6-12-2010, ABC Company delegated the Job of Manufacture of 200 nos of10Litre Cooker to National l Manufacturers. To manufacture of 10 Litre Cookers RawMaterials will be supplied by ABC Company using the JoB Work BOM.

Record the Transaction in Job Work Out Order



Work Out Order is raised. E.g. Global Manufacturers.

3. In Party Details screen, under Process Instruction section specify the Durationof Process and Nature of Process to be carried out.


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4. Order No: In this field enter the Job Work Out Order Number. E.g. Job - 0025. Name of Item: In this field select the stock Item i.e. Finished Goods to bemanufactured by the Job Worker. E.g. Cooker 10Litre. Press Enter to view Stock Item

Allocations screen

6. In Stock Item Allocation screen Track Components: By default this field will be set to Yes. If the Principal

Manufacturer wants to track the raw materials used in the manufacture offinished goods retain the Setting as Yes.

Due On: In this specify the Date on which the delivery ofFinished Goods isdue. In this case ABC Company has accepted the manufacturing Duration of 45Days. Hence the 200 Nos of Cooker 10Litre will be due on 21-1-2011


Quantity: Specify the Quantity of finished goods to be received from the JobWorker. Press enter from Quantity field to view Components Allocation screen

In Components Allocation Screeno Fill Components using: In this field by default the BOM created for thefinished goods will be displayed.

If multiple BOMs are created then Tally.ERP 9 will display the First BOM of theItem. Based on the BOM displayed the Raw materials pending for issue and By-Products/Co-products/ Scrap receivable will be displayed.

If users are issuing raw materials based on different BOM then select theappropriate BOM in this field. Here, ABC Company are issuing the Raw materialsse per Job Work BOM. On selection of applicable BOM the items will be displayedwith the Quantity required to manufacture 200Nos of pressure Cooker 10Litre.


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Observe, when the BOM is selected by default the voucherdate will be displayed as the Due on date for Rawmaterials and for By-Products/Co-products/Scrap the due date specified for the Finished goods will bedisplayed. When BOM is selected the Quantity As per BoM will be displayed automatically

In Component Allocation screen, if the Raw material Due date is different then alter the same.The completed ComponentAllocation screen is displayed as shown

In Stock item Allocation screen


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o Rate: In this field specify the Rate of Finished goods. E.g. 1585o Amount: Will be calculated and displayed automatically.o Cost Tracking To: Select NewNumber and specify the tracking number as JobOut - 002




Transfer of Material towards a Job Order

n raising a job work order, principal Manufacturer has to deliver the Raw materials basedon the delivery date agreed upon.


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In Tally.ERP 9 the Material transfers to the Job Workers can be recorded using MaterialTransfer Out vouchers.

Example: On 6-12-2010, ABC Company transferred the stock to Mega Manufacturerstowards the Job Order - Job - 001 raised on 4-12-2010. Materials are transferred along withMaterial Delivery Document (Material Transfer Out Challan)

Step 1. Record the transaction in Material Transfer Out Voucher

Go to Gateway of Tally > Inventory Vouchers > Ctrl + J: Material Transfer Out

1. In Change Voucher Type screen select Material Out (RM) from the List ofTypes

Here, ABC Company is using Material Out (RM) voucher type as it is transferring the Rawmaterials out to the Job worker.

2.

Enter the Date as 6-12-2010

3. Party A/C Name: In this field select the Job Worker ledger to whom the material tobe transferred. E.g. Mega Manufacturers. Press Enter to view Party Details screen

4. In Party Details screen Under Order Details, in Order No(s) field select the Job Order from the List of

Orders towards which the Raw materials are transferred


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Note: The Order Type in List of Orders will be displayed as ComponentIssue Order indicating that this order is selected for issue of

components.

Date & Time of Issue: In this field by default the voucher date and System timewill be displayed as the Date and Time of Issue.

Under Name of Item the stock items will be auto-filled based on the Job Orderselected.

Destination Godown: In this field select the godown to where the stock aretransferred. select the godown created to account the stock items lying with thethird party. E.g. JobWork (Out) Location.

The completed Material Transfer Out Voucher is displayed as shown


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Observe, Tally.ERP 9 displays only the Raw material required to be transferred to the JobWorker. For Job Order Job - 001 we have identified that during manufacturing processAluminium Scrap will be produced, which is not auto filled for material transfer.


Even though the goods are transfered physically from principal manufacturer location toJob Worker location, ownership on the goods is still with the Principal Manufacturer.Hence in the books of accounts of Principal Manufacturer the Value or the Quantity of thegoods transfered are not reduced. Users can check the stock details in Stock Summary.

Note: The Value or the Quantity of the stock is not reduced from theBooks of Accounts when the Godown used to account the transfer ofgoods to Job worker is created by enabling the opti on Our Stock with

Third Party.

Step 2: Generate Delivery Document (Material Transfer Out Challan)

Material are transfered to Job Worker along with Delivery document. In Tally.ERP 9 userscan generate Material Transfer Out Challan from Material Transfer Out Voucher.

To print the material transfer out challan

Press PageUp to go back to Material Transfer Out voucher entry Click on Print button or Press Alt + P from the Material Transfer Out voucher to

view the Voucher Printing screen


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Note: To view the Material Transfer Out Challan in a preview mode, clickon I: With Preview button or press Alt + I.

Press Enter to accept the Voucher Printing sub screen and to display theMaterial Transfer Out Challan in Print Preview mode. Click Zoom or Press Alt + Z to view the Material Transfer Out Challan

The Print preview of Material Transfer Out Challan is displayed as shown


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The details of Material Transfer Out voucher details can be viewed in Material Out Register

To view the Material Out Register

Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Material Out Register

Transfer of Material towards a Job Order (for excise Stock Item)

On raising a job work order, principal Manufacturer has to deliver the Raw materials based

on the delivery date agreed upon.


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As per CENVAT Rule, Cenvat credit can be availed on materials sent for job work, if thegoods have been received back in the factory within 180 days. To avaial CENVAT creditManufacturer has to prove from the records, challans or memos or any other documentthat the goods are received with in 180 days.

To prove through the documents, excise law has made mandatory to send the goods to Job

Work by raising AnnexureII.

Number of Annexure II copies : The Annexure II shall be prepared in Triplicate

The original copy being marked as Original (this copy will be sent to JobWorker)

The duplicate copy being marked as Duplicate (this copy will be sent to JobWorker)

The triplicate copy being marked as Triplicate (this copy will be retained by thePrincipal Manufacturer)

The above requirement is mainly for Central Excise purposes. However, the assessee maymake more than three copies for his other requirements.

After filling the details of processing, Job Worker will retain a copy of the Annexure II andanother copy will be returned to the Principal Manufacturer along with the Finished goods

In Tally.ERP 9 the Material transfers to the Job Workers can be recorded using MaterialTransfer Out vouchers.

Step 1: Record the transaction in Material Transfer Out Voucher

Go to Gateway of Tally > Inventory Vouchers > Ctrl + J: Material Transfer Out

1. In Change Voucher Type screen select Material Out (RM) from the List ofTypes

Here, ABC Company is using Material Out (RM) voucher type as it is transferring the Rawmaterials out to the Job worker.

2. Enter the Date, select the PartyLedger to whom the material to be transferred. E.g.Mega Manufacturer

3. In Party Details screen, under Order Details, in Order No(s) field select the JobOrder - JobEx - 001.


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Date & Time of Issue: In this field by default the voucher date and System timewill be displayed as the Date and Time of Issue.

Note:1. The Order Type in List of Orders will be displayed as ComponentIssue Order indicating that this order is selected for issue ofcomponents.

2. Providing details in Duration of Process and Nature of Processing ismandatory if the manufacturer is registered under excise. Because

cenvat rule has clearly mentioned that a excise manufacturer can availcenvat credit on the goods sent for Job Work if the goods are receivedback in the factory with in 180 days.3. Rules also makes it clear that to avail the credit manufacturer has toestablish from records, challans or memos or any other document thatthe goods are received back with in 180 days. Hence, Date & Time ofIssue details are captured.

Date & Time of Issue will get captured in Annexure II.

4. Under Name of Item the stock items will be auto-filled based on the Job Orderselected.

5. Destination Godown: In this field select the godown to where the stock aretransfered. select the godown created to account the stock items lying with the

third party. E.g. Job Work (Out) Location.

The completed Material Transfer Out Voucher is displayed as shown


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6. Press Enter to save.Step 2: Generate Annexure II

Material are transfered to Job Worker along with Annexure II. In Tally.ERP 9 users cangenerate Annexure II (Material Transfer Out Challan) from Material Out Voucher.

To print Annexure II

Press PageUp to go back to Material Out voucher entry Click on Print button or press Alt + P from the Material Out voucher to view the

Voucher Printing screen

Press 12: Configure to view Material Out Printing Configuration screeno Set the option Print as Annexure II to Yes

Completed Material Out Printing Configuration


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Note: To view the Annexure II in a preview mode, click on I: WithPreview button or press Alt + I.

Press Enter to accept the Voucher Printing sub screen and to display theAnnexure II in Print Preview mode.

Click Zoom or Press Alt+Z to view Annexure IIThe Print Preview of Annexure II is displayed as shown


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In Annexure II, To be filled by the Processing Factory in Original & Duplicate Chalalnsection will be filled by the Job worker and returned to the Principal Manufacturer alongwith the Finished Goods.

If the Principal Manufacturer has agreed for delivery of Finished goods in installments, thenJob worker has to mention the date and time of delivery each installment and return the

Annexure II when the last installment is delivered.


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Job Work Out Reports

To view the Job Work Out Reports

Go to Gateway of Tally > Display >Job Work Out Reports

Job Work Out Reports are

Order Outstandings Job Work Registers Stock Job Work Analysis
http://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-_Order_Outstandings.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-_Order_Outstandings.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Job_Work_Registers.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Job_Work_Registers.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-Stock.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-Stock.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo-_Job_work_Analysis.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo-_Job_work_Analysis.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo-_Job_work_Analysis.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-Stock.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Job_Work_Registers.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/Jo_-_Order_Outstandings.htm


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Order Outstandings

Order Outstandings report displays the details of all the Job work out orders raised on theJob workers which are pending.

To view the Order Outstandings report

Go to Gateway of Tally > Display > Job Work Out Reports > Order Outstandings

The Order Outstandings reports are

Orders Components
http://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Ordres.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Ordres.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Components.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Components.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Components.htmhttp://www.tallysolutions.com/website/CHM/TallyERP9/Job_Work/JO_-_Ordres.htm


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Orders

Job Order Summary report displays the summary of all the Job work orders which areoutstanding (job order raised on the Job worker towards which the raw materials arepending for issue)

To view Job Order Summary report

Go to Gateway of Tally > Display > Job Work Out Reports > Order Outstandings >Orders

Job Order Summary report displays the details ofstock item for which the Job order ispending along with the details ofOrdered Quantity and Balance Quantity

Party Wise - Job Order Summary

To view party wise Job Order Summary report click on F5: Party Wise button or press F5

key to view the report.

F12: Configuration


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Press F12 key or Click on F12: Configure button to view the Configuration screen

Show Outstanding Job orders: By default this option will be set to Yes. Whenthis option is set to Yes Job order Summary report displays only theOutstanding Job Orders

Show Cleared Job Orders: Set this option to Yes to view even the Job Work OutOrders which are already cleared.

Appearance of Stock Item Names: In this field Tally.ERP 9 displays the List ofName Styles to be displayed in the report for the stock item . By default NameOnly will be displayed, you can select the Name Styles as per your requirement.

Appearance of Names: In this field Tally.ERP 9 displays the List of NameStyles to be displayed in the report for the Party (Job Worker). By default NameOnly will be displayed, you can select the Name Styles as per your requirement.

Job Order Details

To view the details of Job order outstandings select a Job Order and press enter to view theJob Order Details screen

Closure of Orders


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In some cases Principal Manufacturer may raise the Job Work Out Order and later mayclose the order because of reasons like Job worker not ready to deliver finished goodsagreed upon earlier or may be asking for more Raw material or charging more forprocessing etc.

To close the Orders, select the Outstanding order and click on Ctrl + C: Close button to

view Job Orders To Close screen. In Job Order To Close screen retain Yes for the optionClose Orders

Press Enter to Close the Job work Out Order.

Note: On Closing the Job Work Out Orde r the relating componentsorder will also get closed and components will not be displayed inComponent Order Summary.

Accounting Receipt of Finished Goods towards a Job Order

There are cases where principal manufacturer may say that, Job Work Out Order is raised

and against that order want to account the receipt of Goods without recording the materialin voucher (from voucher entry) but want to account the receipt from the Order Summary.

To meet this requirement in Job Orders Details screen a button I: Receive Material hasbeen provided.

To account the Receipt of finished goods against the Job Work Out Order raised select theJob OrderClick on I: Receive Material button To view Material Receive Configurationscreen

Voucher Type for Material Receive: In this field select the Voucher Type to beused to account the receipt of finished goods. Here we are using Material In (FG)

voucher


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Note: In Material In Voucher Type list Tally.ERP 9 will list only thevoucher types in which Use for Job Work In is set to Yes.

Voucher Date: In this field enter the date on which the material has beenreceived

SourceGodown: In this field select the Godown from where the materials arereceived. E.g JobWork (Out) Location In Narration field enter the transaction details

The completed Material Receive Configuration screen is displayed as shown

Press Enter to view Material In (FG) voucher auto filled with the details.Voucher displays the Finished Goods/ Scrap /By-Product/ Co-Product to bereceived which are identified in the Job Work Out Order

In Material In (FG) Voucher if the Finished Goods/Scrap /By-Product/ Co-Product Quantity received is different than the OrderedQuantity, Tally.ERP 9allows to specify the actual receipt Quantity.

The completed Material In FG is displayed as shown


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Other Button options in the Job Order Details screen

F4: Party -To view the Job order details of a specific Job worker

F5: Order - To view the Job order Details of a specific Order

F6: Item - To view the Job order Details of a specific Item

F7: Due Only - To view to toggle between All Orders and Due Only orders

Orders

ob Order Summary report displays the summary of all the Job work orders which areoutstanding (job order raised on the Job worker towards which the raw materials arepending for issue)

To view Job Order Summary report

Go to Gateway of Tally > Display > Job Work Out Reports > Order Outstandings >Orders


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Job Order Summary report displays the details ofstock item for which the Job order ispending along with the details ofOrdered Quantity and Balance Quantity

Party Wise - Job Order Summary

To view party wise Job Order Summary report click on F5: Party Wise button or press F5

key to view the report.

F12: Configuration



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Show Outstanding Job orders: By default this option will be set to Yes. Whenthis option is set to Yes Job order Summary report displays only theOutstanding Job Orders

Show Cleared Job Orders: Set this option to Yes to view even the Job Work OutOrders which are already cleared.

Appearance of Stock Item Names: In this field Tally.ERP 9 displays the List ofName Styles to be displayed in the report for the stock item . By default Name

Only will be displayed, you can select the Name Styles as per your requirement.

Appearance of Names: In this field Tally.ERP 9 displays the List of NameStyles to be displayed in the report for the Party (Job Worker). By default NameOnly will be displayed, you can select the Name Styles as per your requirement.

Job Order Details

To view the details of Job order outstandings select a Job Order and press enter to view the

Job Order Details screen

Closure of Orders

In some cases Principal Manufacturer may raise the Job Work Out Order and later mayclose the order because of reasons like Job worker not ready to deliver finished goodsagreed upon earlier or may be asking for more Raw material or charging more forprocessing etc.

To close the Orders, select the Outstanding order and click on Ctrl + C: Close button toview Job Orders To Close screen. In Job Order To Close screen retain Yes for the optionClose Orders


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Press Enter to Close the Job work Out Order.

Note: On Closing the Job Work Out Orde r the relating componentsorder will also get closed and components will not be displayed inComponent Order Summary.


There are cases where principal manufacturer may say that, Job Work Out Order is raisedand against that order want to account the receipt of Goods without recording the materialin voucher (from voucher entry) but want to account the receipt from the Order Summary.

To meet this requirement in Job Orders Details screen a button I: Receive Material hasbeen provided.

To account the Receipt of finished goods against the Job Work Out Order raised select theJob OrderClick on I: Receive Material button To view Material Receive Configurationscreen

Voucher Type for Material Receive: In this field select the Voucher Type to beused to account the receipt of finished goods. Here we are using Material In (FG)voucher

Note: In Material In Voucher Type list Tally.ERP 9 will list only thevoucher types in which Use for Job Work In is set to Yes.

Voucher Date: In this field enter the date on which the material has beenreceived

SourceGodown: In this field select the Godown from where the materials arereceived. E.g JobWork (Out) Location

In Narration field enter the transaction details


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The completed Material Receive Configuration screen is displayed as shown

Press Enter to view Material In (FG) voucher auto filled with the details.Voucher displays the Finished Goods/ Scrap /By-Product/ Co-Product to bereceived which are identified in the Job Work Out Order

In Material In (FG) Voucher if the Finished Goods/Scrap /By-Product/ Co-Product Quantity received is different than the OrderedQuantity, Tally.ERP 9allows to specify the actual receipt Quantity.

The completed Material In FG is displayed as shown

Components

Components Order Summary report displays the components Outstanding (for issue) for aJob Orders raised.

Go to Gateway of Tally > Display > Job Work Out Reports > Order Outstandings >Components


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Components Order Summary report displays components outstanding for a Job orderalong with the details ofOrdered Quantity and Balance Quantity

Party Wise - Components Order Summary

To view Party Wise - Components Order Summary report click on F5: Party Wise button

or press F5 key to view the report.

F12: Configuration



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Components Orders Details

To view the components order details, select a stock item and press enter


There are cases where principal manufacturer may say that, Job Work Out Order is raisedand against that order want to account the issue of raw materials without recording thematerial out voucher (from voucher entry) but want to account the material issue from theComponents Orders Details .

To meet this requirement in Components Orders Details screen a button I: Issue Materialhas been provided.

To account the issue of finished goods against the Job Work Out Order raised select theJob OrderClick on I: Issue Material button To view Material Issue Configuration screen

Voucher Type for Material Issue : In this field select the Voucher Type to beused to account the issue of Raw materials. Here we are using Material Out (RM)voucher

Voucher Date: In this field enter the date on which the material has beenissued

SourceGodown: In this field select the Godown to where the materials areissued. E.g JobWork (Out) Location

In Narration field enter the transaction detailsThe completed Material Issue Configuration screen is displayed as shown


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Press Enter to view Material Out (RM) voucher auto filled with the details.Voucher displays the Components to be issued which are identified in the JobWork Out Order

In Material Out (RM) Voucher if the Components issued aredifferent than inthe Order, Tally.ERP 9 allows to specify the actual issued Quantity.

Other Button options in the Component Order Details screen

F4: Party -To view the Component order details of a specific Job worker

F5: Order - To view the Component order Details of a specific Order

F6: Item - To view the Component order Details of a specific Item



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Other Button options in the Job Order Details screen

F4: Party -To view the Job order details of a specific Job worker

F5: Order - To view the Job order Details of a specific Order

F6: Item - To view the Job order Details of a specific Item


job work in & out

Documents