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Record Principal Manufacturer or Job Work Out Transactions in TallyPrime

Job Order Processing or Job Work Out in TallyPrime is the process of taking an order to manufacture or process goods as per the prescription of the client by utilising the material supplied by the client or purchased on behalf of the client and charging him for the services provided as Job Work or Sub Contract.

TallyPrime allows to process the job work taken from a client as well as job work given to job workers. It also allows the principal company to track the materials despatched to job workers and materials received against the job given, and vice versa.

This voucher allows the principal company to raise Job Orders on Job Worker.

Creating a Job Work Out Order
Altering and Deleting a Job Work Out Order

Creating a Job Work Out Order

If you have not created Job Work related masters yet, refer to Job Work Masters in TallyPrime.

To create a job work out order

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
In case the voucher is inactive, you will be prompted to activate the Job Work In Order voucher type. Select Yes or press Y to proceed.
Party A/c Name: Select the Supplier’s (Job Worker) name from the List of Ledger Accounts. Use Alt+C to create a new account.
The Dispatch Details screen is displayed. Provide the details as shown:
Order No: Enter the Job Work Out Order Number under Order No column.
Name of the Item: Select the Stock Item for which order is placed, from the List of Stock Items. The Item Allocations sub-screen is displayed.
- Track Components: Set the option to Yes if components need to be tracked.
- Due On: Enter the due date for receipt of the items. This monitors outstanding receipts.
  If orders are split for different dates, then specify the due date for the first lot to be received and select the quantity, rate and amount. Next, specify the due date for the second lot, and so on. After specifying the due dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.
- Godown: Select the required Godown from the list.
- Note: For the godown selected in the Item Allocation screen, the options Our Stock with Third Party and Third Party Stock with us should not be enabled in Godown masters.
Quantity, Rate and Amount: Enter the ordered quantity of the item and its rate. The amount will be calculated automatically.
In case the option Track Component is set to Yes, the Component Allocation screen is displayed when the Quantity is entered, as shown below:
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Note: The Components Allocation displays the list of components specified in the Ordered Item master.
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Accept the screen. As always, you can press Ctrl+A to save.
Narration: This field is optional. Enter the required particulars concerning the order.

Altering and Deleting a Job Work Out Order

To alter a Job Work Out Order:

Gateway of Tally > Day Book or Gateway of Tally > Display More Reports> Job Work Reports > Job Work Out Orders book and press Enter.
Alternatively, press Alt+G (Go To) > type or select Job Work Out Orders book > and press Enter.
Make the necessary alterations and save.

Deleting a Job Work Out Order

To delete a Job Work Out Order:

Press Alt+D in the Job Work Out Order alteration screen.

Printing Co-Product, By-Product, and Scrap List

To print a job work out order:

Click Ctrl+P (Print) in the job work out order screen.
The Job Work Out Order Printing Configuration screen appears as shown below:

When the option Print Co-Product/By-Product/Scrap List is enabled while printing a job work out order, the respective co-product, by-product, and scrap list is printed in the invoice.

Job Work Out Order for a Stock Item Without BOM

In a business scenario a manufacturer who wants to delegate the manufacturing job to an external manufacturer (Job Worker), first identifies the Job workers who have specialisation in the Job which needs to be delegated. Then compares the cost of manufacture by different Job Workers and finally decides on the Job Worker to whom the job to be delegated based on cost of Manufacture, Quantity of Manufacturer, and so on.

After deciding the Job Worker Principal manufacturer raises the Job Work Out Order by specifying the details of Finished Goods to be manufactured and expected Quantity of Finished Goods, Raw material to be supplied by the Principal Manufacturer, Date of Delivery of Raw Materials (if delivered in installments), and so on.

In TallyPrime users can record Job Work Out Orders using Job Work Out Order voucher.

1. Record the Transaction in Job Work Out Order

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
Enter the Date as 20-6-2020
Party A/C Name: In this field select the Job Worker ledger on whom the Job Work Out Order is raised. E.g. Mega Manufacturers.
In Dispatch Details screen, under Process Instruction section specify the duration of Process and Nature of Process to be carried out.
1. Duration of Process: In this field enter the duration of the manufacture of finished goods. i.e. within how many days/months etc. the process to be completed and goods to be delivered.
2. Nature of Processing: In this field specify the details of nature of process (process Instruction) to be carried out to manufacture the expected finished goods.
In the Job Work Out Order screen, press F12(Configure) > set Provide Party details and Provide Dispatch and Export/Import details option to Yes, to display Dispatch Details and Party Details screen while recording Job Work In Order.
Providing details in Duration Of Process and Nature of Processing in Job Work Out Order is not Mandatory. However while transferring the goods to the Job Worker it is must to define the Nature of Processing. When material transfer out are recorded by tracking the Job work Out Order then Duration and Nature of Processing details will get captured automatically.
Press Enter to accept the Party Details screen.
Order No: In this field enter the Job Work Out Order Number. For example, Job – 0013.
Name of Item: In this field select the stock Item i.e. Finished Goods to be manufactured by the Job Worker. E.g. Cooker 12 Litre. Press Enter to view Stock Item Allocations screen.
In Stock Item Allocation screen:
1. Item Allocation for: By default the stock Item selected in the Job Work Out Order will be displayed, indicating that the item allocation is for the selected item.
2. For Order Number: By default the Job order specified in the Job Work Out Order will be displayed indicating that the item allocation is for the job order specified.
3. Track Components: By default this field will be set to Yes. If the Principal Manufacturer wants to track the raw materials used in the manufacture of finished goods retain the Setting as Yes.
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Note: In case the Manufacturer does not want to track the Raw materials then set the  option Track Components to No. When this option is set to No, TallyPrime will not display the Component Allocation screen.
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4. Due On: In this specify the Date on which the delivery of Finished Goods is due. In this case the manufacturing duration of 30 Days (from the day of delivery of raw materials). Hence the 200 Nos of Cooker 8 Litre will be due on 20-7-2020.
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Note: If the Principal Manufacturer has agreed for the delivery of finished goods in Installments the user can define multiple Due on date with Quantity of delivery.
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5. Godown: In this field select the Godown where the finished goods will be stored on Receipt of the same from the job Worker.
6. Quantity: Specify the Quantity of finished goods to be received from the Job Worker.
7. Press Enter from Quantity field to view Components Allocation screen. In Components Allocation screen:
  
  Note: Component Allocation screen will be displayed only when the option Track Components is set to Yes in Stock Item Allocations screen.
  The Finished goods for which Job Work order is raised does not have the Bill of Material (BOM) then in Component Allocation screen, TallyPrime will skip Fill Component using field and cursor will be displayed in Name of Item field indicating that the Raw Materials required for the manufacture of Finished goods has to be selected from the List of Stock Items.

- - Name of Item: Select the Raw materials required to manufacture the finished Goods. For example, Bottom Plate-12Ltr.
  - Track: In this field select Pending to Issue from the Type of Component list as the Raw materials are pending for issue to the Job Worker.
    Note: Based on the Job Work Order TallyPrime will highlight the appropriate Type of Component.
    
    For Job Work Out Order – Pending to Issue will be highlighted.
  - Due on: In this field specify the date on which the Raw materials will be delivered to the Job Worker Location. By default the Voucher Date will be displayed in this field. if the Delivery Date is different than the voucher date specify the correct Due on date. Here, National Enterprise is delivering the Raw materials on 3-9-2020.
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Note: If the Job Worker has agreed for the delivery of raw materials in Installments then user can define multiple Due on date with Quantity of delivery. For example, 100 Nos on 3-9-2020 and 100 Nos on 6-9-2020.
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- - Godown: In this field select the godown from where the Raw materials will be delivered to the Job Worker.
  - Quantity (Actual): In this section specify the Quantity of Raw material to be issued.
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Note: Cursor will not move to As per BOM field when the BOM is not selected in Fill Component using field.
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  - Rate: In this field specify the Rate of Raw material consumed for the manufacture of finished goods.
  - Similarly, select all the Raw materials to be issued towards the Job work Out Order.
  - In the process of Manufacture of Cooker 12Litre, Aluminium Scrap is produced. Under Name of Item select Aluminium Scrap and in Track field select Pending to Receive as the scrap has to be received form the Job Worker along with the Finished goods.
    
    Note: While recording the Job Work Out Order users can also track the Scrap, By-Products or Co-products produced during the manufacture of Finished Goods.
  - In Due On field specify the Date on which the scrap will be received, Here, principal manufacturer is receiving the scrap along with the Finished Goods.
  - In Godown field select the Godown where the scrap will be stored. For example, Scrap Location.
  - In Quantity (Actual) field specify the Quantity of scrap to be received. For example, 25 Gm. The completed Components Allocation screen is displayed as shown:
  - Press Enter to accept the Component Allocation screen and to view Stock Item Allocation screen.
- In Stock item Allocations screen:
  1. 1. Rate: In this field specify the Rate of Finished goods. E.g. Rs. 3000 (based on the raw materials supplied to the job worker).
    2. Amount: Will be calculated and displayed automatically.
    3. Cost Tracking To: In this field select New Number and specify the Cost Tracking Number.
      
      Note: National Enterprises wants to track the total cost incurred for the manufacture of 12 liter Cooker for the Job -001 delegated to Mega Manufacturer.
      The completed Stock Item Allocations screen is displayed as shown:
    4. Press Enter to save the Stock Item Allocations screen.
      The completed Job Work Out Order is displayed as shown:

11. Accept the screen. As always, you can press Ctrl+A to save.

The details of Job Work Out Order details can be viewed in Job Work Out Orders Book Order Outstandings.

To view the Job Work Out Orders Book:

Gateway of Tally > Display More Reports> Job Work Reports > Job Work Out Orders book and press Enter.
Alternatively, press Alt+G (Go To) > type or select Job Work Out Orders book > and press Enter.

Job Work Out Order for a Stock Item with BOM

Record the Transaction in Job Work Out Order

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Job Work Out Order and press Enter.
Enter the Date as 20-06-2020.
Party A/C Name: In this field select the Job Worker ledger on whom the Job Work Out Order is raised. For example, Global Manufacturers.
In Dispatch Details screen, under Process Instruction section specify the Duration of Process and Nature of Process to be carried out.
Order No: In this field enter the Job Work Out Order Number. For example, Job – 002.
Name of Item: In this field select the stock Item i.e. Finished Goods to be manufactured by the Job Worker. E.g. P-Cooker 10Litre. Press Enter to view Stock Item Allocations screen
In Stock Item Allocations screen,
Track Components: By default this field will be set to Yes. If the Principal Manufacturer wants to track the raw materials used in the manufacture of finished goods retain the Setting as Yes.
Due On: In this specify the Date on which the delivery of Finished Goods is due. In this case National Enterprises has accepted the manufacturing Duration of 45 Days. Hence the 200 Nos of Cooker 10Litre will be due on 15-8-2020.
Godown: In this field select the Godown where the finished goods will be stored on Receipt of the same from the job Worker.
Quantity: Specify the Quantity of finished goods to be received from the Job Worker. Press enter from Quantity field to view Components Allocation screen.
In Components Allocation Screen
1. Fill Components using: In this field by default the BOM created for the finished goods will be displayed.
2. If multiple BOMs are created then TallyPrime will display the First BOM of the Item. Based on the BOM displayed the Raw materials pending for issue and By-Products/Co-products/ Scrap receivable will be displayed.
3. If users are issuing raw materials based on different BOM then select the appropriate BOM in this field. Here, National Enterprise are issuing the Raw materials as per Job Work BOM. On selection of applicable BOM the items will be displayed with the Quantity required to manufacture 200Nos of pressure Cooker 10Litre.
  Observe, when the BOM is selected by default the voucher date will be displayed as the Due on date for Raw materials and for By-Products/Co-products/Scrap the due date specified for the Finished goods will be displayed. When BOM is selected the Quantity As per BoM will be displayed automatically

In Components Allocation screen, if the Raw material Due date is different then alter the same. The completed Components Allocation screen is displayed as shown:
In Stock item Allocations screen,
1. Rate: In this field specify the Rate of Finished goods. For example, 1585.
2. Amount: Will be calculated and displayed automatically.
3. Cost Tracking To: Select New Number and specify the tracking number as JobOut – 002.
4. The completed Stock Item Allocation screen is displayed as shown:
Press Enter to save the Item Allocation screen.
The completed Job Work Out Order is displayed as shown:
Accept the screen. As always, you can press Ctrl+A to save.

Transfer of Materials towards a Job Order

While raising a job work order, the principal manufacturer has to deliver the raw materials based on the specified delivery date. Material transfers to the job workers can be recorded using material transfer out vouchers.

For example, On 15-08-2020, National Enterprise transferred the stock to Mega Manufacturers towards the job order – Job – 0013 raised on 20-06-2020. Materials are transferred along with material delivery document (Material Transfer Out Challan).

Step 1. Record the transaction in Material Transfer Out Voucher

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material Out and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material Out and press Enter.
In case the voucher is inactive, you will be prompted to activate the Job Work In Order voucher type. Select Yes or press Y to proceed.

Here, National Enterprises is using Material Out (RM) voucher type as it is transferring the raw materials out to the job worker.
Enter the Date as 15-8-2020.
Party A/C Name: In this field select the job worker ledger to whom the material to be transferred. Press Enter
In Order Details screen, select the Order No(s) 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: Displays the voucher date and system time by default.
Under Name of Item the stock items will be auto-filled based on the Job Order selected. Select the godown where the stock are transferred in Destination Godown. (The godown created to account the stock items lying with the third party. For example, Job Work (Out) Location.) The completed material transfer out voucher appears as shown below:

Note: Observe, TallyPrime displays only the raw material required to be transferred to the job worker. For job order Job – 001, we have identified that Aluminium Scrap will be produced during manufacturing process which is not auto filled for material transfer.
Accept the screen. As always, you can press Ctrl+A to save.

Even though the goods are transferred 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 transferred 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)

Materials are transferred to job worker along with delivery document. In TallyPrime, 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 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 I.
Press Enter to accept the Voucher Printing screen and to display the material transfer out challan in print preview mode.
Press Alt+Z to view the material transfer out challan.
The print preview of the material transfer out challan appears as shown below:
The details of material transfer out voucher details can be viewed in Material Out Register.

To view the Material Out Register

Gateway of Tally > Display More Reports> Job Work Reports > Material Out Register and press Enter.
Alternatively, press Alt+G (Go To) > type or select Material Out Register > and press Enter.

Printing the Material Out Voucher without Amount Chargeable

While sending Raw Materials for Job Work, Manufacturer dispatches goods along with the Material Out voucher. In the voucher, he does not want to disclose Amount Chargeable details. Is it possible in TallyPrime to print the Material Out Voucher without Amount Chargeable (in words) i.e. Amount in Words details?

Answer

To print Material Out Voucher without Amount Chargeable (in words) details user can record Zero valued entries without specifying rate and amount for stock items and by not specify amount for any additional ledger selecting during entry.

Zero-valued entries can be recorded by enabling the option Allow Zero valued entries in F11 (Features).

Record Receipt of Finished Goods Against a Job Order

On transferring the Raw materials, Job Worker will undertake the processing as defined by the Principal Manufacturers. On completing the manufacture of agreed goods the finished goods will be delivered to the Principal manufacture.

In TallyPrime the Material Receipts (Finished Goods/ scrap etc.) from the Job Workers can be recorded using Material In vouchers.

For example, On 20-7-2020 National Enterprise received the following Finished goods and Scrap of Job work order Job – 0013 from Mega Manufacturers.

Materials Received	Quantity
Cooker 12Litre	1000 (Nos)
Aluminium Scrap	25 (GM)

To record the transaction in Material In Voucher

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material In and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material In and press Enter.
Here, National Enterprise is using Material In (FG) voucher type to account the receipt of Finished Goods and Scrap by auto consuming the Raw materials (used in the manufacture).
Enter the Date as 20-7-2020.
Party A/C Name: In this field select the Job Worker ledger from whom the Finished goods is received. For example, Mega Manufacturers. Press Enter.
In Order Details screen,
Under Order Details, in Order No(s) field select the Job Order from the List of Orders towards which the finished goods are received.
Under Party’s Document Details, in Challan Number field enter the delivery challan number through which the finished goods are delivered and mention the challan date.
Challan Number and Challan date details will be captured in Material Movement Register:
Note: The Order Type in List of Orders will be displayed as Material Receipt Order indicating that this order is selected to account the receipt of Finished Goods.
Under Name of Item the stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on the Job Order selected.
Consumption Godown: In this field select the godown from where the components/Raw Materials are consumed. In this field select the Job worker Location. E.g. Job Work (Out) Location.
Note: If Consumption Godown is not selected the components will not be auto consumed even when the option Allow Consumption is enabled for the Voucher type. Hence selection of Consumption Godown is mandatory.
Select the stock Item – Cooker 12 Litre and press enter to view Stock Item Allocations screen
In Stock Item Allocations screen,
Set the option Consider as Primary Item to Yes if you want to track the cost of raw materials consumed to the primary Item. Here the cost of Raw materials consumed in this voucher are tracked against the Cooker 12Litre.
Note: Setting the option Consider as Primary Item is mandatory to consume the Components to the extent Finished Goods received.
On setting the option Consider as Primary Item for a stock item to which Cost tracking is enabled, Cost Tracking To field will be displayed in Item allocation screen
In BOM Name field select Not applicable.
Note: When a stock item is considered as Primary item, application skips the Consider as Scrap field.
Order No- Job -001, Godown, Quantity, Rate and Amount of the item will be displayed. accept the default details.
In Cost Tracking To field select the Cost Tracking Number to which cost needs to be tracked.
Note: Consider as Primary Item, BOM Name and Consider as Scrap options can also be used to account the receipt of Finished goods and Scrap received form Job Worker directly in Material In voucher type, where the principal manufacturer has not followed the standard procedure of raising Job Work Out Order, Material Out and then Material In to account the receipt.
1. Consider as Primary Item: Set this option to Yes for a Stock Item to account the goods received as Finished Goods
2. BoM Name: If any item is considered as Primary Item received from the Job Worker, to consume the Raw Materials from the books of accounts user can select the BOM (component list) based on which the components will be considered for consumption.
3. Consider as Scrap: Set this option to Yes for a stock item if the material received is scrap.
Select the stock item – Aluminium Scrap. Set the option Consider as Scrap to Yes. In Rate field specify 0.30. Amount will be calculated and displayed.
The option Enter Consumption Details by default will be set to Yes and indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor will skips the field.
Note:
The option Enter Consumption Details will be displayed in Material In voucher (during entry) only when the option Allow Consumption is set to Yes in Material In Voucher Type Alteration.
When Enter Consumption Details is set to Yes, the Raw Materials used in the manufacture of Finished goods will be considered as Consumed automatically and to that extent the stock will be reduced from the books of accounts.

The users who do not want the Auto consumption of Stock Items

In the Material In Invoice, press F12 (Configure) > Set the option Allow Auto Consumption of Stock Items to No.

Then in Material transfer in Voucher cursor will move to Enter Consumption Details field. The Enter Consumption Details option will be marked as Manual. Press Enter from the field to view the Component Consumption Details screen.

In this screen you can select the stock items, specify the Quantity and Rate to be considered for Consumption.

For this entry National Enterprises has considered the auto consumption of stock item based on the raw materials selected for the Job Order JOb – 001.

Completed Material In Voucher:

Accept the screen. As always, you can press Ctrl+A to save.

Note: To view the details of item consumed for the above entry, press page up to view the earlier recorded entry.

In the Material In Invoice, pressF12(Configure) > Set the option Allow Auto Consumption of Stock Items to No.
From Enter Consumption Details press enter to view the Component Consumption Details screen with components, Quantity, Rate and amount.

To check the details of auto consumption of raw materials you can check the Stock Summary report.

We will take the Component – Bottom Plate 8Ltr to view the details in Stock Voucher report.

The details of Material In voucher recorded to account the receipt of finished goods can be viewed in Material In Transfer report.

To view the Material In voucher details

Gateway of Tally > Display More Reports> Job Work Reports > Material In Register and press Enter.
Alternatively, press Alt+G (Go To) > type or select Material In Register > and press Enter.

Receipt of Finished Goods against a Job Order (for a Excise Stock Item)

1. Record the transaction in Material Transfer In Voucher

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Material In and press Enter.
Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Material In and press Enter.
Here, National Enterprises is using Material In (FG) voucher type to account the receipt of Finished Goods and Scrap by auto consuming the Raw materials (used in the manufacture).
Enter the Date. In Party A/c Name field select the Job Worker ledger from whom the Finished goods are received. E.g. Mega Manufacturers. Press Enter to view Party Details screen
In Order Details screen,
1. Under Order Details, in Order No(s) field select the Job Order from the List of Orders towards which the finished goods are received.
2. Under Party’s Document Details, in Challan Number field enter the delivery challan number through which the finished goods are delivered and mention the challan date.
3. Challan Number and Challan date details will be captured in Material Movement Register.
Under Name of Item the stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on the Job Order selected.
Consumption Godown: In this field select the godown from where the components/Raw Materials are consumed. In this field select the Job worker Location. For example, Job Work (Out) Location.
Note: If Consumption Godown is not selected the components will not be auto consumed even when the option Allow Consumption is enabled for the Voucher type. Hence selection of Source Godown is mandatory.
Select the stock Item – Cooker 12 Litre and press enter to view Item Allocation screen.
In Stock Item Allocations screen,
1. Set the option Consider as Primary Item to Yes.
2. Order No- Job -001, Godown, Quantity, Rate and Amount of the item will be displayed. Accept the default details.
In Cost Tracking To field select the Cost Tracking Number – Job Ex Out – 001 to which cost needs to be tracked.
Select the stock item – Aluminium Scrap. Set the option Consider as Scrap to Yes. In Rate field specify 0.03. Amount will be calculated and displayed.
The option Enter Consumption Details by default will be set to Yes and indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor will skips the field.
The completed Material In voucher is displayed as shown:
Accept the screen. As always, you can press Ctrl+A to save.

Accounting Purchase of Job Work Service

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 TallyPrime, the purchase of Job Work services can be accounted through Purchase Invoice.

For example, On 20-7-2020, National Enterprise 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.

Step 1: Create the Ledger (Job Work Charges)

Gateway of Tally > Create > type or select Ledger and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger and press Enter.
Enter the name of the ledger in Name field. For example, Job Work Charges.
Group the ledger under Direct Expenses.
Set the option Allow cost allocation (stock item) to Yes .
In the Ledger master, press F12 (Configure) > set Apply Cost Tracking of Stock Items for Ledgers to Yes.
If you do not see this option, ensure that Enable Cost Tracking is set to Yes in F11 for your company.
Note: From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
Similarly, create Cost of Material Consumed Ledger.

Step 2: Record the transaction in Purchase Invoice

Gateway of Tally > Vouchers > press F9 (Purchase)
Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase)
Enter the Date as 20-7-20.
In Supplier Invoice No. field enter the bill number – 4587/20-21.
In Party A/c Name field select the Job worker Name – Mega Manufacturer from whom the Job Work bill is received.
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.
In Stock Item Cost Allocation screen,
In Cost Track to field select the Cost Tracking Number to which the cost to be tracked. Here, National Enterprise is tracking the cost towards the tracking Number – JobOut – 0013.
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).
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
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:
Accept the screen. As always, you can press Ctrl+A 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 TallyPrime and service ledger has to be configured accordingly. Here we considering that the Job Worker is not registered under Service Tax Rules.

Recording Payment to Job Worker

On Receipt of service bill from the Job Worker, Principal Manufacturer will make the payment towards bill received.

For example, On 23-07-2020, National Enterprise made payment of Rs. 42,000 through cheque to Mega Manufacturer towards the Job Work bill – 4587/20-21.

To record the Transaction in Payment Voucher

Gateway of Tally > Vouchers > press F5 (Payment)
Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment)
In Payment Voucher change the voucher mode to Double Entry by pressing Ctrl+H.
Enter the Date as 23-07-2020.
In Debit field select Mega Manufacturer ledger to whom the payment is made.
In Debit Amount field enter Rs. 42,000.
In Bill-wise details screen select the bill towards which the payment is made.
In Credit field select the Bank/Cash ledger depending on the mode of payment. Amount will be displayed automatically.
In Bank Allocation screen enter the Cheque Number through which the payment is made.
The completed Payment Voucher appears as shown:
Accept the screen. As always, you can press Ctrl+A to save.

Job Work Out Report (Job Work Out)

You can generate Job Work Out Reports and get accurate stock positions by tracking material movement.

Order Outstandings Report (Job Work Out)

Order Outstandings Report displays the details of all the Job work out orders raised on the Job workers which are pending.

Gateway of Tally > Display More Reports> Job Work Reports >

Alternatively, press Alt+G (Go To) > type or select > Job Work Reports and press Enter

The Order Outstandings reports are:

Orders
Components

Job Orders Summary Report (Job Work Out)

Job Order Summary report displays the summary of all the Job work orders which are outstanding (job order raised on the Job worker towards which the raw materials are pending for issue).

Gateway of Tally > Display More Reports> Job Work Reports > Orders and press Enter

Alternatively, press Alt+G (Go To) > type or select > Job Work Order Summary and press Enter.

Job Order Summary report displays the details of stock item for which the Job order is pending along with the details of Ordered Quantity and Balance Quantity

Party Wise – Job Order Summary

To view Party Wise Job Order Summary report click on F5 (Party-wise) or press F5 key to view the report

F12: Configuration

Press F12 key or Click on F12: Configure button to view the Configuration screen.

Show Outstanding Job orders: By default this option will be set to Yes. When this option is set to Yes Job order Summary report displays only the Outstanding Job Orders
Show Cleared Job Orders: Set this option to Yes to view even the Job Work Out Orders which are already cleared.
Appearance of Stock Item Names: In this field TallyPrime displays the List of Name Styles to be displayed in the report for the stock item . By default Name Only will be displayed, you can select the Name Styles as per your requirement.
Appearance of Names: In this field TallyPrime displays the List of Name Styles to be displayed in the report for the Party (Job Worker). By default Name Only will be displayed, you can select the Name Styles as per your requirement.

Job Order Details

To view the details of Job order outstandings select a Job Order and press enter to view the Job Order Details screen.

Closure of Orders

In some cases Principal Manufacturer may raise the Job Work Out Order and later may close the order because of reasons like Job worker not ready to deliver finished goods agreed upon earlier or may be asking for more Raw material or charging more for processing etc.

To close the Orders, select the Outstanding order and click on Alt+W (Close Order) to view Job Orders To Close screen. In Job Order To Close screen retain Yes for the option Close Orders.

Press Enter to Close the Job work Out Order.

Note: On Closing the Job Work Out Order the relating components order will also get closed and components will not be displayed in Component Order Summary.

Job Work in/out order cannot be closed partially.

Accounting Receipt of Finished Goods towards a Job Order

There are cases where principal manufacturer may say that, Job Work Out Order is raised and against that order want to account the receipt of Goods without recording the material in voucher (from voucher entry) but want to account the receipt from the Order Summary.

To meet this requirement in Job Orders Details screen a button I (Receive Material) has been provided.

To account the Receipt of finished goods against the Job Work Out Order raised select the Job Order Click on I (Receive Material) button to view Material Receive Configuration screen

Voucher Type for Material Receive: In this field select the Voucher Type to be used to account the receipt of finished goods. Here we are using Material In (FG) voucher

Note: In Material In Voucher Type list TallyPrime will list only the voucher types in which Use for Job Work In is set to Yes.

Voucher Date: In this field enter the date on which the material has been received.

Source Godown: In this field select the Godown from where the materials are received. E.g JobWork (Out) Location.

In Narration field enter the transaction details.

The completed Material Receive Configuration screen is displayed as shown:

Press Enter to view Material In (FG) voucher auto filled with the details. Voucher displays the Finished Goods/ Scrap /By-Product/ Co-Product to be received which are identified in the Job Work Out Order

In Material In (FG) Voucher if the Finished Goods/Scrap /By-Product/ Co-Product Quantity received is different than the Ordered Quantity, TallyPrime allows to specify the actual receipt Quantity.

The completed Material In FG is displayed as shown:

Other Button options in the Job Order Details screen

F4: Party – To view the Job order details of a specific Job worker.

F5: Order – To view the Job order Details of a specific Order.

F6: Item – To view the Job order Details of a specific Item.

F7: Due Only – To view to toggle between All Orders and Due Only orders.

Components Order Summary Report (Job Order Out)

Components Order Summary report displays the components Outstanding (for issue) for a Job Orders raised.

Gateway of Tally > Display More Reports> Job Work Reports > Components and press Enter

Alternatively, press Alt+G (Go To) > type or select > Job Work Components Order Summary and press Enter

Components Order Summary report displays components outstanding for a Job order along with the details of Ordered Quantity and Balance Quantity.

Party Wise – Components Order Summary

To view Party Wise Components Order Summary report click on F5 (Party-wise) or press F5 key to view the report.

F12: Configuration

Press F12 key or click on F12: Configure button to view the Configuration screen.

Components Orders Details

Select a stock item and press Enter.

Accounting Receipt of Finished Goods towards a Job Order

There are cases where principal manufacturer may say that, Job Work Out Order is raised and against that order want to account the issue of raw materials without recording the material out voucher (from voucher entry) but want to account the material issue from the Components Orders Details .

To meet this requirement in Components Orders Details screen a button I (Issue Material) has been provided.

To account the issue of finished goods against the Job Work Out Order raised select the Job Order Click on I (Issue Material) button To view Material Issue Configuration screen

Voucher Type for Material Issue : In this field select the Voucher Type to be used to account the issue of Raw materials. Here we are using Material Out (RM) voucher.

Voucher Date: In this field enter the date on which the material has been issued.

Source Godown: In this field select the Godown to where the materials are issued. E.g JobWork (Out) Location.

In Narration field enter the transaction details.

The completed Material Issue Configuration screen is displayed as shown:

Press Enter to view Material Out (RM) voucher auto filled with the details. Voucher displays the Components to be issued which are identified in the Job Work Out Order

In Material Out (RM) Voucher if the Components issued are different than in the Order, TallyPrime allows to specify the actual issued Quantity.

Other Button options in the Component Order Details screen

F4: Party – To view the Component order details of a specific Job worker.
F5: Order – To view the Component order Details of a specific Order.
F6: Item – To view the Component order Details of a specific Item.
F7: Due Only – To view to toggle between All Orders and Due Only orders.

Job Work Registers (Job Work Out)

You can display all the material in vouchers recorded to account the transfer and receipt of stock.

The Job Work Registers are:

Job Work Out Orders Book

Job Work Out Orders Book displays all the Job Work Out Order Vouchers recorded in the Books.

To view the Job Work Out Orders Book

Gateway of Tally > Display More Reports> Job Work Reports > Job Work Out Orders Book and press Enter.

Alternatively, press Alt+G (Go To) > type or select > Job Work Out Orders Book and press Enter.

To view the monthly summary

Press Alt+N (Auto Column)
Set the Periodicity as Monthly.
Set the option Show Total? to Yes.

The Job Work Out Orders monthly summary will be displayed for the selected period.

Material Out Register Report (Job Work Out)

Material Out Register displays all the material out vouchers recorded to account the transfer of Material to the Job worker Location.

To view the Material Out Registers

Gateway of Tally > Display More Reports> Job Work Reports > Material Out Register and press Enter.
Alternatively, press Alt+G (Go To) > type or select > Material Out Register and press Enter.

Material In Register Report (Job Work Out)

Material In Register displays all the material in vouchers recorded to account the receipt of finished goods from the Job worker Location.

To view the Material In Registers

Gateway of Tally > Display More Reports> Job Work Reports > Material In Register and press Enter.
Alternatively, press Alt+G (Go To) > type or select > Material In Register and press Enter.

Material Movement Register Report (Job Work Out)

Material Movement Register displays the details of Movement of Material (Raw Materials and Finished Goods) of Job Orders.

Gateway of Tally > Display More Reports > Job Work Reports > Material Movement Register and press Enter.
Alternatively, press Alt+G (Go To) > type or select > Material Movement Register and press Enter.

Column Description of Material Movement Register

Order Number: This column displays the Job Order number towards which the material movement (Out/In) is captured.
Delivery Challan Number: This column displays the voucher number of the Material out voucher through which the materials are transferred towards the Job Order.
Order Number: This column displays the Job Order number towards which the material movement (Out/In) is captured.
Delivery Challan Number: This column displays the voucher number of the Material out voucher through which the materials are transferred towards the Job Order.
Date of Dispatch: Displays the date on which the materials are transferred/dispatched for the Job Order.
Description of Goods dispatched: Displays the description/Name of the stock items dispatched for the Job Order
Quantity Dispatched to Job Worker: Displays the Quantity of each goods dispatched.
Name and Address of Job Worker: This column displays the Name of the Job worker on whom the order is raised.
Nature of Processing Required: This column displays the Nature of Processing required. Nature of Processing details will be captured form the Party Details of Material out voucher.
Goods Received from Job Worker: This column displays the goods (Finished Goods/Scrap/By-Products/Co- Products) received from the Job Worker
Quantity Received form Job Worker: This column displays the Quantity of Finished Goods received.
Job Worker’s Delivery Challan No. and Date: This column displays the Job worker’s Delivery Challan Number and Date entered in the Material In Voucher.
Factory GRN/GRRNo. and Date: This column will display the Voucher Number and date of Material In voucher through which the material receipts are accounted.
Shortages if any: This column displays the details of Shortages in the process of Manufacture, if any.
Wastage/Scrap at the end of Job worker: This column displays the quantity of wastage and scrap produced during the manufacture of Finished Goods.
Duty Paid on Shortages/Scrap/Wastage: This column displays the details of Duty paid on the Shortage/ scrap/Wastage
Remarks: To enter the remark as the Job Order is closed.

Stock With Job Worker Report (Job Work Out)

Stock reports displays the details of stock lying with Job worker and from how many days the stock is with the Job worker.

Gateway of Tally > Display More Reports> Job Work Reports > From Party and press Enter.
Alternatively, press Alt+G (Go To) > type or select > Stock From Party and press Enter.

With Job Work report displays the details of stock lying with the Job worker.

Gateway of Tally > Display More Reports> Job Work Reports > With Job Worker and press Enter.
Alternatively, press Alt+G (Go To) > type or select > Stock with Job Worker and press Enter.

Configuring the Report

Press F12 (Configure). The Configuration screen appears.

Show Quantities, Show Rates, and Show Values: On enabling these options, the columns Quantity, Rates and Values will be displayed in the report.
Show using Alternate Units: On enabling this option, the column (Alt. Units) will be displayed. If any stock item is created with alternate units, the same will be captured here.
Display name for Stock Items: The display name of the stock item can be changed in this field.
Show Base Currency: If this option is enabled, the base currency of the company will be displayed on the right side corner of the report.

Job Work Analysis Report (Issue)

Job work Analysis report give the information of any variance in the issue of raw materials (issued more or less) and receipt of Finished Goods/Scrap/By-Products/Co-products. These reports can be used to analyse the reason for the variances.

Go to Gateway of Tally > Display > Job Work In Reports > Job Work Analysis.

Job Work Analysis reports are:

Issue Variance

Receipt Variance

Issue Variance Analysis Report (Job Work Out)

Issue Variance report displays the details of variance in the raw material/components issued against the ordered Quantity of the Job Work Out Order. Report also displays the variance Quantity and the Percentage of variance.

Gateway of Tally > Display More Reports> Job Work Reports > Issue Variance and press Enter.

Alternatively, press Alt+G (Go To) > type or select > Issue Variance Analysis and press Enter.

Receipt Variance Report (Job Work Out)

Receipt Variance report displays the details of variance in the Finished Goods/ Scrap/ Co-product/ By-product received against the ordered Quantity of the Job Work Out Order.

Gateway of Tally > Display More Reports> Job Work Reports > Receipt Variance and press Enter.

Alternatively, press Alt+G (Go To) > type or select > Receipt Variance Analysis and press Enter.

Stock Ageing Analysis Report (Job Work Out)

Ageing Analysis report displays the details of period (i.e. for how long) stock is lying with the Job worker.

Gateway of Tally > Display More Reports> Job Work Reports > Ageing Analysis and press Enter.

Alternatively, press Alt+G (Go To) > type or select > Stock Ageing Analysis and press Enter.

In Select Item screen select the stock group for which the Ageing Analysis report to be viewed.

The Stock Ageing Analysis report is displayed as shown:

Transfer of Materials towards a Job Order

Printing the Material Out Voucher without Amount Chargeable

Answer

Record Receipt of Finished Goods Against a Job Order

Accounting Purchase of Job Work Service

Recording Payment to Job Worker

F12: Configuration

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