To record the material transfer transaction in Tally.ERP 9 Two new Inventory Voucher Types have been provided.
Material Out/In vouchers will be available under Inventory Vouchers only when the option Use Material In/Out is set to Yes. Use Material In/Out option is associated with Job 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 without enabling Allow Job Order Processing to use the Material Transfer vouchers for any other purpose than Job Work
Example: Material Transfer vouchers used to transfer stock to Consignment Agent, Branch, Inter-godown transfers etc.
Material Out: 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 well as Manufacturer
Principal Manufacturer: Can use this Voucher to transfer the Raw Materials to the Job Worker
Job Worker: Can use this voucher to transfer the Finished goods to the principal Manufacturer
Material In: This voucher type can be used to record the material transfer In (of Raw materials or Finished Goods) transactions.
In case of Job Work - Material In voucher can be used by the Job Worker as well as Manufacturer
Principal Manufacturer: Can use this Voucher to record the receipt of Finished goods/ Scrap/By-Product/Co-Product from he Job Worker. In this voucher Principal Manufacturer can also track the components used (own consumption like- wax, screw etc.) by the Job Worker
Job Worker: Can use this voucher to account the receipt of Raw material from the Principal Manufacturer.
In real Business scenario a party may be acting as Principal Manufacturer as well as Job Worker. In that case he may require
Material Out vouchers to account transfer - Raw materials and Finished Goods
Material In voucher to account the receipt - Finished Goods and Raw materials.
Here, ABC Company is delegating Job to a Job Worker and also Receives Job from other Principal Manufacturers. Hence to account all the material transfer (In & Out) related transactions Four new voucher types are created.
Note: If a party is acting as Principal Manufacturer as well as Job Worker, 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 process for 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 Yes
Note:
1. Use for Job Work option will be displayed in Material Out voucher type 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 voucher type to record Job work transactions.
Retain No for the option Use for Job Work In
Set Print after saving Voucher to No
Enter Default Jurisdiction as Bangalore
Note: Set the option Use for Job Work In to Yes if the Job Worker wants to use the Material Out voucher type to record the transfer (out) of Finished goods/ scrap/ Co-product/By-Products.
The completed Voucher Type Creation screen is displayed as shown:
Press Enter to save
2. Voucher Type - Material Out (Transfer/FG)
This voucher Type will be used by the Job Worker in Job Work In process for recording the Transfer of Finished Goods, Scrap, By-Products, Co-Products to the Principal Manufacturer.
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 (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
Set Print after saving Voucher to No
Enter Default Jurisdiction as Bangalore
Note: Set the option Use for Job Work In to Yes if the Job Worker wants to use the Material Out voucher type to record the transfer (out) of Finished goods/ scrap/ Co-product/By-Products.
The completed Voucher Type Creation screen 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 the Receipt of Raw Materials from the Principal Manufacturer.
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 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 Voucher Type Creation is displayed as shown:
Press Enter to save
Note: While creating Job Work In voucher type to account the receipt of Raw Materials by the Job worker, if the option Use Job work In is set to Yes 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 process for recording the Receipt of Finished Goods, Scrap, By-Products, Co-Products from 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 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 Yes
Note:
1. Enable the option Allow Consumption in Material In voucher types, when the voucher type is used by the Principal Manufacturer to account the receipt of Finished Goods from the Job Worker.
2. When Allow Consumption is set to Yes, on recording the Material In voucher the Raw Materials used in the manufacture of Finished goods will be considered as Consumed and to that extent the stock will be reduced from the books of accounts.
The completed Voucher Type Creation is displayed as shown:
Press Enter to save
1. Voucher Type - Material Out (RM)
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 Yes
Retain No for the option Use for Job Work In
Set the option Use for Excise to Yes
In Default Excise Unit field select the Excise unit - ABC Company
Note: Set the option Use for Job Work In to Yes if the Job Worker wants to use the Material Out voucher type to record the transfer (out) of Finished goods/ scrap/ Co-product/By-Products.
The completed Voucher Type Creation is displayed as shown:
Similarly, create all the Material Out/In voucher type if excise applicable.