On transferring the Raw materials, Job Worker will undertake the processing as defined by the Principal Manufacturers. On completing the manufacture of agreed goods the finished goods will be delivered to the Principal manufacture.
In Tally.ERP 9 the Material Receipts (Finished Goods/ scrap etc.) from the Job Workers can be recorded using Material In vouchers.
For example, On 6-1-2011 ABC Company received the following Finished goods and Scrap of Job work order Job - 001 from Mega Manufacturers.
|
Materials Received |
Quantity |
|
Cooker 12Litre |
1000 (Nos) |
|
Aluminium Scrap |
25000 (GM) |
To record the transaction in Material In Voucher
1. Go to Gateway of Tally > Inventory Vouchers > Ctrl + W: Material In
2. In Change Voucher Type screen select Material In (FG) from the List of Types.
Here, ABC Company is using Material In (FG) voucher type to account the receipt of Finished Goods and Scrap by auto consuming the Raw materials (used in the manufacture).
3. Enter the Date as 6-1-2011.
4. Party A/C Name : In this field select the Job Worker ledger from whom the Finished goods is received. For example, Mega Manufacturers. Press Enter to view Party Details screen.
5. In Party Details screen,
● Under Order Details , in Order No(s) field select the Job Order from the List of Orders towards which the finished goods are received.
● Under Party's Document Details , in Challan Number field enter the delivery challan number through which the finished goods are delivered and mention the challan date.
Challan Number and Challan date details will be captured in Material Movement Register:
Note: The Order Type in List of Orders will be displayed as Material Receipt Order indicating that this order is selected to account the receipt of Finished Goods.
6. Under Name of Item the stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on the Job Order selected.
7. Consumption Godown : In this field select the godown from where the components/Raw Materials are consumed. In this field select the Job worker Location. E.g. Job Work (Out) Location .
Note: If Consumption Godown is not selected the components will not be auto consumed even when the option Allow Consumption is enabled for the Voucher type. Hence selection of Consumption Godown is mandatory.
8. Select the stock Item - Cooker 12Litre and press enter to view Item Allocation screen
9. In Stock Item Allocation screen,
● Set the option Consider as Primary Item to Yes if you want to track the cost of raw materials consumed to the primary Item. Here the cost of Raw materials consumed in this voucher are tracked against the Cooker 12Litre .
Note:
♦ Setting the option Consider as Primary Item is mandatory to consume the Components to the extent Finished Goods received.
♦ On setting the option Consider as Primary Item for a stock item to which Cost tracking is enabled, Cost Tracking To field will be displayed in Item allocation screen
● In BOM Name field select Not applicable.
Note: When a stock item is considered as Primary item, application skips the Consider as Scrap field.
● Order No- Job -001, Godown, Quantity, Rate and Amount of the item will be displayed. accept the default details.
● In Cost Tracking To field select the Cost Tracking Number to which cost needs to be tracked.
Note: Consider as Primary Item , BOM Name and Consider as Scrap options can also be used to account the receipt of Finished goods and Scrap received form Job Worker directly in Material In voucher type, where the principal manufacturer has not followed the standard procedure of raising Job Work Out Order , Material Out and then Material In to account the receipt.
1. Consider as Primary Item : Set this option to Yes for a Stock Item to account the goods received as Finished Goods
2. BoM Name : If any item is considered as Primary I tem received from the Job Worker, to consume the Raw Materials from the books of accounts user can select the BOM (component list) based on which the components will be considered for consumption.
3. Consider as Scrap : Set this option to Yes for a stock item if the material received is scrap.
10. Select the stock item - Aluminium Scrap . Set the option Consider as Scrap to Yes . In Rate field specify 0.03 . Amount will be calculated and displayed.
11. The option Enter Consumption Details by default will be set to Yes and indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor will skips the field.
Note:
1. The option Enter Consumption Details will be displayed in Material In voucher (during entry) only when the option Allow Consumption is set to Yes in Material In Voucher Type.
2. When Enter Consumption Details is set to Yes , the Raw Materials used in the manufacture of Finished goods will be considered as Consumed automatically and to that extent the stock will be reduced from the books of accounts .
The users who do not want the auto consumption of Stock Items
Press F12: Material In Configuration
* Set the option Allow Auto Consumption to No.
Then in Material transfer in Voucher cursor will move to Enter Consumption Details field. The Enter Consumption Details option will be marked as Manual . Press Enter from the field to view the Component Consumption Details screen.
In this screen you can select the stock items , specify the Quantity and Rate to be considered for Consumption.
● For this entry ABC Company has considered the auto consumption of stock item based on the raw materials selected for the Job Order JOb - 001 .
Completed Material In Voucher:
● Press Enter to save.
Note: To view the details of item consumed for the above entry, press page up to view the earlier recorded entry.
1. Press in F12: Configuration set the option Allow Auto Consumption to No
2. From Enter Consumption Details press enter to view the Component Consumption Details screen with components , Quantity, Rate and amount .
To check the details of auto consumption of raw materials you can check the Stock Summary report.
We will take the Component - Bottom Plate 8Ltr to view the details in Stock Voucher report.
The details of Material In voucher recorded to account the receipt of finished goods can be viewed in Material In Transfer report.
To view the Material In voucher details
Go to Gateway of Tally > Display > Job Work Out Reports > Job Work Registers > Material In Transfer
1. Go to Gateway of Tally > Inventory Vouchers > Ctrl + W: Material Transfer In
2. In Change Voucher Type screen select Material In (FG) from the List of Types.
Here, ABC Company is using Material In (FG) voucher type to account the receipt of Finished Goods and Scrap by auto consuming the Raw materials (used in the manufacture)
3. Enter the Date . In Party A/c Name field select the Job Worker ledger from whom the Finished goods are received .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 finished goods are received.
● Under Party's Document Details , in Challan Number field enter the delivery challan number through which the finished goods are delivered and mention the challan date.
Challan Number and Challan date details will be captured in Material Movement Register:
5. Under Name of Item the stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on the Job Order selected.
6. Consumption Godown : In this field select the godown from where the components/Raw Materials are consumed. In this field select the Job worker Location. For example, Job Work (Out) Location .
Note: If Consumption Godown is not selected the components will not be auto consumed even when the option Allow Consumption is enabled for the Voucher type. Hence selection of Source Godown is mandatory.
7. Select the stock Item - Cooker 12Litre and press enter to view Item Allocation screen.
8. In Stock Item Allocation screen,
● Set the option Consider as Primary Item to Yes.
● Order No- Job -001, Godown, Quantity, Rate and Amount o f the item will be displayed. Accept the default details.
● In Cost Tracking To field select the Cost Tracking Number - JobEx Out - 001 to which cost needs to be tracked.
9. Select the stock item - Aluminium Scrap . Set the option Consider as Scrap to Yes . In Rate field specify 0.03 . Amount will be calculated and displayed.
10. The option Enter Consumption Details by default will be set to Yes and indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor will skips the field.
The completed Material In voucher is displayed as shown:
11. Press Enter to save.
