After delivery of finished goods and scrap/By-Product/Co-Product, the 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 purchase of Job Work services can be accounted through Purchase Invoice.
For example, On 6-1-2011, ABC Company received the Job Work invoice from Mega Manufacturer (vide. no. 4587/10-11) for Rs. 42,000 (Job Work Charges - Rs. 40,000 & Cost of Material Consumed - Rs.2,000)
Note: Before recording the transaction, create Labour Charges and Material Cost ledgers under Direct Expenses by enabling the option Allow Stock Item Cost Allocation to Yes.
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the name of the ledger in Name field. For example, Job Work Charges.
3. Group the ledger under Direct Expenses.
4. Set the option Allow Stock Item Cost Allocation to Yes.
Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
Note: This option in ledger master will be displayed when the option Track Stock Item Cost to Yes in F11: Features (Inventory Features). Set this option to Yes in expenses ledger if you want to allow the cost to be allocated to the Stock Item.
Similarly, create Cost of Material Consumed Ledger.
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase (Voucher Mode).
2. Enter the Date as 5-1-2011.
3. In Supplier Invoice No. field enter the bill number - 4587/10-11.
4. In Party A/c Name field select the Job worker Name - Mega Manufacturer from whom the Job Work bill is received.
5. Under Particulars select Job Work Charges ledger and in Amount field specify the amount Rs. 40,000 and press enter 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 - JobOut - 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, 1000 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. Under Particulars select Cost of Material Consumed ledger and in Amount field specify the amount Rs. 2,000 and press enter view Stock Item Cost Allocation screen
8. 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 - JobOut - 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, 1000 Nos.
● Rate will be calculated and displayed automatically based on the Amount and the Quantity defined.
The Completed Purchase Invoice is displayed as shown:
9. Press Enter to save.
Note: In case, on the services provided by the Job Worker Service Tax is applicable user have to enable service tax feature in Tally.ERP 9 and service ledger has to be configured accordingly. Here we considering that the Job Worker is not registered under Service Tax Rules.
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