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Job Work in TallyPrime

You can manage job work orders in TallyPrime, as a principal manufacturer and job worker, as needed.

In a manufacturing business, a job worker might be needed to do one of the following:

Manufacture a component that you need in your manufacturing process.
Providing services on a specific product.
Complete the last stage of a manufacturing process.

On the other hand, as a job worker, you might receive job work from a principal manufacturer. Thereafter, you can execute any task mentioned above.

After setting up job work in TallyPrime, you can:

Record job work orders.
View relevant reports.

Setting Up TallyPrime for Job Work Orders

If your business involves assigning job works to job workers or taking job works from the principal manufacturer, then you will need to set up TallyPrime under F11 (Company Features).

Stock Item Management for Job Work Using Godowns

In TallyPrime, you can create stock items for:

With the facility of godowns in TallyPrime, you can:

Identify the material sent to a job worker.
For multiple job workers, create corresponding godowns.
Identify the material received from a principal manufacturer.
For multiple principal manufacturers, create corresponding godowns.
Get a breakup of stock items used from all the godowns.

To get inventory reports like Stock Summary with job worker details and nature of items – raw materials and finished goods, maintain stock groups for these items.

To understand the concept of godowns, refer to Manage Inventory Storage Using Godowns/Locations in TallyPrime.

Stock Item for Raw Materials

You can:

Create/alter stock item as a raw material.
Create a stock group for raw materials.
Then, create a stock item under it.

Stock Item for Finished Goods

For handling Job Work in TallyPrime, you can:

Create/alter stock item – finished goods without bill of materials.
When you send or receive a raw material such as pipes or rods for services like applying paint or polish, you will not need to maintain a bill of materials for the stock item.
Create/alter stock item – finished goods with bill of materials.
When finished goods consist of components, then you will need to set up the stock item along with the bill of materials.

Stock Item for Scrap, By-Product, or Co-Product

While manufacturing the finished product, you might be left with:

Scrap.
By-product or co-product.

In such scenarios, you will need to create stock items for the same.

Party Ledger Creation as Principal Manufacturer or Job Worker

You can create a party ledger for:

Job Worker under Sundry Creditor.
Principal Manufacturer under Sundry Debtor.

Job Work Voucher Types as Principal Manufacturer or Job Worker

When you are a principal manufacturer or job worker, you need to do the following:

Job Work Order Management for Principal Manufacturer

In your manufacturing business, you might be assigning a part of the process to a job worker.

The job worker out order can be assigned to manufacture:

An intermediate process.
Final process in the cycle.

You might be assigning a service such as paint application to the job worker.

Assigning a job work involves:

Supplying raw material to your job worker.
You can record a Material Out voucher for the raw material sent.
Use the finished goods received from job worker to do either of the following:
- Complete the manufacturing process.
- Sell the final product.
  You can record a Material In voucher for the finished product received.

In TallyPrime, you can record a Job Work Out Order:

Without Bill of Materials.
With Bill of Materials when components are involved.

What’s more, you can easily record a purchase voucher for the Job Work and then record a payment voucher, based on the payment made to your job worker.

To keep a track of your job work out orders, you can view the following reports:

Job Work Order Management for Job Worker

In your business, you might be receiving job work in order from a principal manufacturer to manufacture:

An intermediate process.
Final process in the cycle.

You might be receiving a service order, such as paint application, from the principal manufacturer.

Taking a job work involves:

Receiving raw material from the principal manufacturer.
You can record a Material In voucher for the raw material received.
Deliver the finished goods to the principal manufacturer.
You can record a Material Out voucher for the finished goods sent.

In TallyPrime, you can record a Job Work In Order:

Without Bill of Materials
With Bill of Materials when components are involved.

What’s more, you can easily record a sales voucher for the Job Work and then record a receipt voucher for payment received from your principal manufacturer.

To keep a track of your job work in orders, you can view the following reports:

Pre-Closing of Job Work Orders

You might have recorded Job Work Out Order as a principal manufacturer or Job Work In Order as a Job Worker, with or without the Material Out and Material In vouchers.

However, you might want to close the Job Work Out Order because of the following reasons:

You fail to deliver the raw material to the job worker.
You received an incomplete or damaged finished product from the job worker.

You might want to close the Job Work In Order because of the following reasons:

You did not receive the raw material from the principal manufacturer.
You failed to deliver the finished product to the principal manufacturer.

To know how to pre-close job work orders, refer to the Pre-Close Job Work Orders in TallyPrime topic.