You can create stock items for the following categories:
● Finished Goods (Without BOM)
● Finished Goods (With BOM)
● Stock Items - If excise is applicable
To create the stock item
1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create
2. In Name field enter the name of the stock item. For example, Cooker 12Litre.
3. Group the Stock item Under the Stock Group Pressure Cooker (if Stock group is not created use Alt + C from Under field to create the stock group).
4. In Units field select the applicable unit of measurement. For example, Nos.
5. Set the option Enable Cost Tracking to Yes.
Note: ABC Company wants to track the cost of manufacture of Cooker 12Litre.
6. Press Enter to save.
To create the stock item
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create
2. Enter the Stock Item Name, Group, Unit, Tariff Classification and enable Set/Alter Excise Details to Yes.
3. In Excise Details screen select Reporting UOM, enable Set/Alter Duty Details to select the duties applicable for the stock item and select the Stock Item Type - Finished Goods.
4. Press Enter to save.
For Stock Item - Cooker 10Litre Two Bill of Materials are used.
● The Standard BOM is used to manufacture the goods in House
● The Job Work BOM is used when the manufacture of goods is delegated to a Job Worker.
Tally.ERP 9 Release 3.0 allows to create multiple BOM for a stock item which can be used for material issue for production.
Note: A Bill of Materials is a list of constituent items along with quantity details that can be allocated for the manufacture of a certain product, by-product or Co-Product.
To create the stock item
Go to Gateway of Tally > Inventory Info. > Stock Item > Create
Setup:
In F12: Configure (Stock Item Configuration)
1. Set the option Allow Component list details (Bill of Material) to Yes.
2. In Name field enter the name of the stock item. E.g. Cooker 10Litre
3. Group the Stock item Under the Stock Group Pressure Cooker (if Stock group is not created use Alt + C from Under field to create the stock group).
4. In Units field select the applicable unit of measurement. For example, Nos.
5. Enable the option Set Components (BOM) to Yes and press enter to view Stock Item Multi Components (M BOM).
6. In Stock Item Multi Components (M BOM) screen.
7. In Name of BOM field specify the Bill of Material Name. For example, Standard BOM. Press Enter to view Stock Item Components (BOM) screen for Standard BOM.
8. In Stock Item Components (BOM) screen
Setup:
In F12: Configure
● Set the option Define Type of Component of BOM to Yes.
Note: On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new column Type of Item will be displayed.
● Unit of Manufacture: Specify the appropriate number of finished product that will be manufactured by using the components identified in the component list.
● Item: In this field select the raw materials which are required to manufacture the finished goods.
● Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where the items will be used for manufacture. For example, Raw Material Location.
● Type of Item: In this field select the appropriate type for the item selected.
Note: Tally.ERP 9 displays 4 Type of Items for selection:
* By-Product: Select this classification for the stock items which are produced as By-Product of finished goods.
* Component: Select this classification for the Raw materials /inputs which are used or consumed for the production of finished goods.
* Co-Product: Select this classification for the stock items which are produced as Co-product of finished goods
* Scrap: Select this classification for the stock item produced as scrap in the process of manufacture of finished goods.
● Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods or the Co- Products/ By-Products /scrap manufactured. Cursor will not move to Rate (%) column when the Item Type selected is Consumption.
● Rate (%): In this field you can specify the percentage of cost of components to be considered to determine the cost of production of Co-Product or By-Product or Scrap.
If the Component Type selected is Co-product or By-Product or Scrap, cursor will move to Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap
The completed Stock Item Components (BOM) screen is displayed as show:
Observe to manufacture 1 Pressure Cooker, 5 different inputs are required and while manufacturing Aluminium scrap will be produced. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.
● Press Enter to save the Stock Item components for BOM - Standard BOM and to view Stock Item Multi Component screen.
● In Stock Item Multi Component screen enter the second Bill of Material name - Job Work BOM in Name of BOM field.
● In Stock Item Components (BOM) screen specify the Unit of Manufacture, Item, Godown and Quantity details as shown:
● Press Enter to save the Stock Item Components (BOM) and Stock Item Multi Components (M BOM).
● Set the option Enable Cost Tracking to Yes.
Note: ABC Company wants to track the cost of manufacture of Cooker 10Litre.
The completed Stock Item Creation screen is displayed as shown:
