A Godown is a place where stock items are stored. A company can store raw materials and finished goods in different godowns.
You can also track the goods sent out for job work and material received for job work by creating different locations.
When different locations are maintained to track the goods sent or received for job work, following requirements may emerge:
● When the goods are sent out for job work, the quantity of stock item and stock value should not be reduced from the books of accounts as the company has the ownership on the goods transferred.
● When goods are received for job work, the stock should not affect the books of account of job worker.
Note: In a company, if multiple godowns are created and transactions are posted, the godown option cannot be disabled. The godown can be disabled only if the main location is enabled and transactions are posted using main location.
You can also create other godowns as per the details given in the table below:
Godowns |
Under |
Excise Tax unit |
Our stock with third party? |
Third party stock with us? |
Raw Materials Location |
ABC Company |
Not Applicable |
No |
No |
Job Work (In) Location |
ABC Company |
Not Applicable |
No |
Yes |
Job Work (Out) Location |
ABC Company |
Not Applicable |
Yes |
No |
Job Work with Excise |
ABC Company |
Applicable |
No |
No |
Finished Goods Location |
ABC Company |
Not Applicable |
No |
No |
Scrap Location |
ABC Company |
Not Applicable |
No |
No |
Related topics:
● Creating a Raw Materials Location godown
● Creating a Job Work (In) Location godown