On raising a job work order, principal Manufacturer has to deliver the Raw materials based on the delivery date agreed upon.
In Tally.ERP 9 the Material transfers to the Job Workers can be recorded using Material Transfer Out vouchers.
Example: On 6-12-2010, ABC Company transferred the stock to Mega Manufacturers towards the Job Order - Job - 001 raised on 4-12-2010. Materials are transferred along with Material 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
In Change Voucher Type screen select Material Out (RM) from the List of Types
Here, ABC Company is using Material Out (RM) voucher type as it is transferring the Raw materials out to the Job worker.
Enter the Date as 6-12-2010
Party A/C Name: In this field select the Job Worker ledger to whom the material to be transferred. E.g. Mega Manufacturers. Press Enter to view Party Details screen
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
Note: The Order Type in List of Orders will be displayed as Component Issue 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 time will be displayed as the Date and Time of Issue.
Under Name of Item the stock items will be auto-filled based on the Job Order selected.
Destination Godown: In this field select the godown to where the stock are transferred. 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
Observe, Tally.ERP 9 displays only the Raw material required to be transferred to the Job Worker. For Job Order Job - 001 we have identified that during manufacturing process Aluminium Scrap will be produced, which is not auto filled for material transfer.
Press Enter to save.
Even though the goods are transfered physically from principal manufacturer location to Job 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 the goods 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 the Books of Accounts when the Godown used to account the transfer of goods to Job worker is created by enabling the option 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 users can 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
Note: To view the Material Transfer Out Challan in a preview mode, click on I: With Preview button or press Alt + I.
Press Enter to accept the Voucher Printing sub screen and to display the Material 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
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
On raising a job work order, principal Manufacturer has to deliver the Raw materials based on the delivery date agreed upon.
As per CENVAT Rule, Cenvat credit can be availed on materials sent for job work, if the goods have been received back in the factory within 180 days. To avaial CENVAT credit Manufacturer has to prove from the records, challans or memos or any other document that 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 Annexure II.
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 Job Worker)
The duplicate copy being marked as Duplicate (this copy will be sent to Job Worker)
The triplicate copy being marked as Triplicate (this copy will be retained by the Principal Manufacturer)
The above requirement is mainly for Central Excise purposes. However, the assessee may make more than three copies for his other requirements.
After filling the details of processing, Job Worker will retain a copy of the Annexure II and another 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 Material Transfer Out vouchers.
Step 1: Record the transaction in Material Transfer Out Voucher
Go to Gateway of Tally > Inventory Vouchers > Ctrl + J: Material Transfer Out
In Change Voucher Type screen select Material Out (RM) from the List of Types
Here, ABC Company is using Material Out (RM) voucher type as it is transferring the Raw materials out to the Job worker.
Enter the Date, select the Party Ledger to whom the material to be transferred. E.g. Mega Manufacturer
In Party Details screen, under Order Details, in Order No(s) field select the Job Order - JobEx - 001.
Date & Time of Issue: In this field by default the voucher date and System time will be displayed as the Date and Time of Issue.
Note:
1. The Order Type in List of Orders will be displayed as Component Issue Order indicating that this order is selected for issue of components.
2. Providing details in Duration of Process and Nature of Processing is mandatory if the manufacturer is registered under excise. Because cenvat rule has clearly mentioned that a excise manufacturer can avail cenvat credit on the goods sent for Job Work if the goods are received back in the factory with in 180 days.
3. Rules also makes it clear that to avail the credit manufacturer has to establish from records, challans or memos or any other document that the goods are received back with in 180 days. Hence, Date & Time of Issue details are captured.
Date & Time of Issue will get captured in Annexure II.
Under Name of Item the stock items will be auto-filled based on the Job Order selected.
Destination Godown: In this field select the godown to where the stock are transfered. 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
Press Enter to save.
Material are transfered to Job Worker along with Annexure II. In Tally.ERP 9 users can generate 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 screen
Set the option Print as Annexure II to Yes
Completed Material Out Printing Configuration
Note: To view the Annexure II in a preview mode, click on I: With Preview button or press Alt + I.
Press Enter to accept the Voucher Printing sub screen and to display the Annexure II in Print Preview mode.
Click Zoom or Press Alt+Z to view Annexure II
The Print Preview of Annexure II is displayed as shown
In Annexure II, To be filled by the Processing Factory in Original & Duplicate Chalaln section will be filled by the Job worker and returned to the Principal Manufacturer along with the Finished Goods.
If the Principal Manufacturer has agreed for delivery of Finished goods in installments, then Job worker has to mention the date and time of delivery each installment and return the Annexure II when the last installment is delivered.
