After delivery of finished goods and scrap/By-Product/Co-Product, Job Worker raises sales invoice on the principal manufacturer by giving the details of cost of manufacture (labour charges, transportation expenses, and so on) along with the cost of material consumed, if any.
In Tally.ERP 9, the sale of Job Work services, can be accounted through sales Invoice.
For example, On 27-10-2010, ABC Company raised the Job Work invoice on Bright Home Appliances for Rs. 25,050 (Job Work Charge - Rs. 23,550 & Cost of Material Consumed - Rs.1,500)
1. Go to Gateway of Tally > Accounts Info . > Ledgers > Create
2. Enter the Name of the ledger in Name field. For example, Job Work Charge.
3. Group the ledger under Direct Incomes.
4. Set the option Allow Stock Item Cost allocation to Yes.
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales (Item Invoice Mode)
2. Enter the Date as 27-10-2010.
3. In Party A/c Name field select Bright Home Appliances ledger. Press Enter to view Party Details screen.
4. In Party Details screen,
● In Delivery Note No(s) field, the Tracking Number defined for the stock item used as own consumption will be displayed in List of Tracking Numbers. Select the tracking Number to bill the items used in the production of Finished goods for JobIn - 001 .
On selection of Tracking Number , In sales invoice the stock items tracked with the number selected will be displayed along with Quantity utilised.
5. Select Job Work Charge ledger. In Amount field specify the charges to be paid by the principal Manufacturer for the finished goods delivered. Press enter to view Stock Item Cost Allocation screen
6. In Stock Item Cost Allocation screen,
● In Cost Track to field select the Cost Tracking Number to which the cost to be tracked. Here, ABC Company is tracking the cost towards the tracking Number - JobIn- 001.
● In Name of Item field by default the stock item with which the selected Cost tracking Number is identified will be displayed.
● In Quantity field, enter the Quantity towards which the cost to be tracked. For example, 300 Nos.
● Rate will be calculated and displayed automatically based on the Amount and the Quantity defined.
Note : Details of Cost tracked against the Stock Item can be viewed in Item Cost Analysis Reports ( Gateway of Tally > Display > Statements of Inventory > Item Cost Analysis )
7. In Bill-wise Details screen enter the bill Name as - Bill- 001.
The Completed Sales Invoice is displayed as shown:
8. Press Enter to save.
Note : In case, on the services provided by the Job Worker Service Tax applicable user have to enable service tax feature in Tally.ERP 9 and service ledger has to be configured accordingly.
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