How to Record Principal Manufacturer or Job Work Out Transactions in TallyPrime (2024)

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

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
   Alternatively, pressAlt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
   In case the voucher is inactive, you will be prompted to activate the Job Work In Order voucher type. SelectYesor pressY to proceed.
2. 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:
   
3. Order No: Enter theJob Work Out Order Numberunder Order No column.
4. Name of the Item: Select the StockItem for which order is placed, from theList of Stock Items. TheItem Allocationssub-screen is displayed.
   • Track Components: Set the option to Yesif 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 Enterin theDue onfield to return to theVoucher Creationscreen.
   • Godown: Select the required Godown from the list.
   • Note:For the godown selected in theItem Allocationscreen, the optionsOur Stock with Third PartyandThird Party Stock with usshould not be enabled in Godown masters.
5. 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 Componentis set toYes, the Component Allocation screen is displayed when the Quantity is entered, as shown below:
   
   

   Note:TheComponents Allocationdisplays the list of components specified in theOrdered Item master.

6. Accept the screen. As always, you can pressCtrl+A to save.
7. 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:

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

Deleting a Job Work Out Order

To delete a Job Work Out Order:

• PressAlt+Din theJob Work Out Orderalteration screen.

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

To print a job work out order:

• ClickCtrl+P (Print) in the job work out order screen.
  TheJob Work Out Order Printing Configuration screen appears as shown below:
  

When the optionPrint Co-Product/By-Product/Scrap Listis 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

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
   Alternatively, pressAlt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
2. Enter theDateas20-6-2020
3. 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.
4. InDispatch Details screen, underProcess 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.
      
5. In the Job Work Out Orderscreen, pressF12(Configure) > setProvide Party details andProvide Dispatch and Export/Import detailsoption toYes, to display Dispatch Details and Party Details screen while recording Job Work In Order.
6. Providing details inDuration Of Process andNature of Processing inJob Work Out Orderisnot 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 DurationandNature of Processing details will get captured automatically.
7. PressEnterto accept thePartyDetails screen.
8. Order No: In this field enter the Job Work Out Order Number. For example,Job – 0013.
   
9. Name of Item: In this field select the stock Item i.e.Finished Goodsto be manufactured by the Job Worker. E.g.Cooker 12 Litre. Press Enter to view Stock Item Allocations screen.
   
10. 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.
       

       Note:In case the Manufacturer does not want to track the Raw materials then set the optionTrack ComponentstoNo. When this option is set toNo, TallyPrime will not display theComponent Allocation screen.

    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.
       

       Note:If thePrincipal Manufacturerhas agreed for the delivery of finished goods in Installments the user can define multipleDue ondate withQuantity of delivery.

    5. Godown: In this field select theGodownwhere thefinished goodswill bestored on Receipt of the same from the job Worker.
    6. Quantity: Specify theQuantity of finished goods to be received from the Job Worker.
       
    7. Press Enter from Quantityfield to viewComponents Allocation screen. In Components Allocation screen:
       

       Note: Component Allocationscreen will be displayed only when the optionTrack Componentsis set toYesinStock Item Allocations screen.
       TheFinished goods for whichJob Work order is raised does not have theBill of Material (BOM)then inComponent Allocationscreen, TallyPrime will skipFill Component usingfield and cursor will be displayed inName of Itemfield indicating that theRaw Materialsrequired for the manufacture of Finished goods has to be selected from theList 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 selectPending to Issuefrom theType 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 theVoucher 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.
      

      Note:If theJob Workerhas agreed for the delivery of raw materials in Installments then user can define multipleDue ondate withQuantity of delivery. For example, 100 Nos on 3-9-2020 and 100 Nos on 6-9-2020.

• • • 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 theQuantity of Raw material to be issued.
      

      Note:Cursor will not move toAs per BOMfield when the BOM is not selected inFill Component using field.

    • Rate: In this field specify theRateofRaw material consumed for the manufacture of finished goods.
    • Similarly, selectalltheRaw materials to be issued towards the Job work Out Order.
    • In the process of Manufacture ofCooker 12Litre, Aluminium Scrap is produced. UnderName of ItemselectAluminium Scrapand inTrackfield selectPending to Receive as the scrap has to be received form the Job Worker along with the Finished goods.
      
      Note:While recording theJob Work Out Orderusers can also track theScrap, By-Products or Co-productsproduced during the manufacture ofFinishedGoods.
    • 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 Godownfield select the Godown where the scrap will be stored. For example,Scrap Location.
    • InQuantity (Actual)field specify theQuantityof scrap to be received. For example,25 Gm. The completed Components Allocation screen is displayed as shown:
      
    • Press Enterto accept theComponent Allocation screen and to view Stock Item Allocation screen.
  • InStock item Allocations screen:
    1. 1. Rate: In this field specify theRate 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 selectNew Numberand specify theCost Tracking Number.
          
          Note: National Enterprises wants to track the total cost incurred for the manufacture of 12 liter Cookerfor theJob -001 delegated to Mega Manufacturer.
          The completed Stock Item Allocations screen is displayed as shown:
          
       4. Press Enterto save theStockItem Allocations screen.
          The completed Job Work Out Order is displayed as shown:
          

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

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

To view theJob Work Out Orders Book:

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

Job Work Out Order for a Stock Item with BOM

Record the Transaction in Job Work Out Order

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
   Alternatively, press Alt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectJob Work Out Orderand pressEnter.
2. Enter theDateas20-06-2020.
3. 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.
4. In Dispatch Detailsscreen, under Process Instruction section specify theDuration of ProcessandNature of Process to be carried out.
5. Order No: In this field enter the Job Work Out Order Number. For example,Job – 002.
6. 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
7. In Stock Item Allocations screen,
8. Track Components: By default this field will be set toYes. If the Principal Manufacturer wants to track the raw materials used in the manufacture of finished goods retain the Setting asYes.
9. Due On: In this specify the Date on which the delivery ofFinished Goodsisdue. 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.
10. Godown: In this field select the Godown where the finished goods will be stored on Receipt of the same from the job Worker.
11. Quantity: Specify the Quantity of finished goods to be received from the Job Worker. Press enter from Quantity field to view Components Allocation screen.
12. 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 theBOMis selected by default the voucher date will be displayed as theDue ondate for Raw materials and for By-Products/Co-products/Scrap thedue datespecified for theFinished goodswill be displayed. When BOM is selected the QuantityAs per BoMwill be displayed automatically

1. InComponents Allocation screen, if the Raw material Due date is different then alter the same.The completed Components Allocation screen is displayed as shown:
   
2. InStock item Allocationsscreen,
   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: SelectNew Numberand specify the tracking number asJobOut – 002.
   4. The completedStock Item Allocationscreen is displayed as shown:
3. PressEnterto save the Item Allocation screen.
4. The completed Job Work Out Order is displayed as shown:
   
5. Accept the screen. As always, you can pressCtrl+Ato 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

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectMaterial Outand pressEnter.
   Alternatively, pressAlt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectMaterial Outand pressEnter.
   In case the voucher is inactive, you will be prompted to activate the Job Work In Order voucher type. SelectYesor pressYto proceed.
   
   Here, National Enterprises is using Material Out (RM) voucher type as it is transferring the raw materials out to the job worker.
2. Enter theDateas15-8-2020.
3. Party A/C Name: In this field select the job worker ledger to whom the material to be transferred. PressEnter
4. InOrder Detailsscreen, select theOrder No(s)from theList of Orderstowards which the raw materials are transferred.
   
   Note:TheOrder TypeinList of Orderswill be displayed asComponent Issue Orderindicating that this order is selected for issue of components.
5. Date & Time of Issue: Displays the voucher date and system time by default.
6. UnderName of Itemthe stock items will be auto-filled based on theJob Orderselected. Select the godown where the stock are transferred inDestination Godown. (The godown created to account the stock items lying with the third party. For example,JobWork (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 orderJob – 001,we have identified thatAluminium Scrap will be produced during manufacturing process which is not auto filled for material transfer.
7. Accept the screen. As always, you can pressCtrl+Ato save.

Even though the goods are transferred physicallyfrom 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 inStock Summary.

Note: TheValueor theQuantityof 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 optionOur 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

1. PressPageUpto go back toMaterial Outvoucher entry.
2. Click onPrintbutton or PressAlt+Pfrom the material transfer out voucher to view theVoucher Printingscreen.
   Note: To view theMaterial Transfer Outchallan in a preview mode, click onI: With Preview button or pressI.
   
3. PressEnterto accept theVoucher Printingscreen and to display the material transfer out challan in print preview mode.
4. PressAlt+Zto view the material transfer out challan.
5. The print preview of the material transfer out challan appears as shown below:
   
6. The details of material transfer out voucher details can be viewed inMaterial Out Register.

To view the Material Out Register

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

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 – 0013from Mega Manufacturers.

To record the transaction in Material In Voucher

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectMaterial Inand pressEnter.
2. Alternatively, pressAlt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectMaterial Inand pressEnter.
3. 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).
4. Enter theDate as 20-7-2020.
5. Party A/C Name: In this field select the Job Worker ledger from whom the Finished goods is received. For example, Mega Manufacturers. PressEnter.
6. InOrderDetailsscreen,
7. UnderOrderDetails, inOrder No(s)field select the Job Order from the List of Orders towards which the finished goods are received.
8. UnderParty’s Document Details, inChallan Numberfield enter the delivery challan number through which the finished goods are delivered and mention the challan date.
9. Challan NumberandChallan datedetails will be captured inMaterial Movement Register:
10. Note:TheOrder TypeinList of Orderswill be displayed asMaterial Receipt Orderindicating that this order is selected to account the receipt of Finished Goods.
11. UnderName of Itemthe stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on theJob Orderselected.
12. 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.
13. Note:IfConsumption Godownis not selected the components will not be auto consumed even when the optionAllow Consumptionis enabled for the Voucher type. Hence selection of Consumption Godown is mandatory.
14. Select the stock Item –Cooker 12 Litreand press enter to viewStockItemAllocationsscreen
15. InStock Item Allocationsscreen,
16. Set the optionConsider as Primary ItemtoYesif 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 theCooker 12Litre.
17. Note: Setting the optionConsider as Primary Itemismandatoryto consume the Components to theextent Finished Goodsreceived.
18. On setting the optionConsider as Primary Itemfor a stock item to which Cost tracking is enabled,Cost Tracking Tofield will be displayed in Item allocation screen
19. InBOM Namefield select Not applicable.
20. Note:When a stock item is considered asPrimaryitem, application skips theConsider as Scrapfield.
21. Order No- Job -001, Godown, Quantity, RateandAmountof the item will be displayed. accept the default details.
22. InCost Tracking Tofield select theCost Tracking Number to which cost needs to be tracked.
23. Note:Consider as Primary Item,BOM NameandConsider as Scrapoptions can also be used to account thereceipt of Finished goods and Scrapreceived formJob Workerdirectly in Material Invoucher type, where the principal manufacturer has not followed the standard procedure of raisingJob Work Out Order,Material Outand thenMaterial Into account the receipt.
    1. Consider as Primary Item: Set this option toYes for a Stock Item to account the goods received as Finished Goods
    2. BoM Name: If any item is considered asPrimaryItemreceived 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 toYes for a stock item if the material received is scrap.
24. Select the stock item – AluminiumScrap. Set the optionConsider as ScraptoYes. InRatefield specify0.30.Amountwill be calculated and displayed.
25. The optionEnter Consumption Detailsby default will be set toYesand indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor willskipsthe field.
26. Note:
27. The optionEnter Consumption Details will be displayed in Material In voucher (during entry) only when the optionAllow Consumption is set toYesinMaterial InVoucher Type Alteration.
28. WhenEnter Consumption Details is set toYes, the Raw Materials used in the manufacture of Finished goods will be considered asConsumed automaticallyand to that extent thestockwill bereducedfrom thebooks of accounts.

The users who do not want theAuto consumptionofStock Items

In the Material In Invoice, pressF12(Configure) > Set the optionAllow Auto Consumption of Stock ItemstoNo.

Then in Material transfer in Voucher cursor will move toEnter Consumption Detailsfield. The Enter Consumption Details option will be marked asManual. PressEnterfrom the field to view the Component Consumption Details screen.

In this screen you canselectthestock items, specify theQuantityandRateto be considered for Consumption.

Forthisentry National Enterprises has considered the auto consumptionof stock item based on the raw materials selected for the Job OrderJOb – 001.

Completed Material In Voucher:

Accept the screen. As always, you can pressCtrl+Ato save.

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

1. In the Material In Invoice, pressF12(Configure) > Set the optionAllow Auto Consumption of Stock ItemstoNo.
2. FromEnter Consumption Details pressenter to view theComponent Consumption Detailsscreen withcomponents,Quantity,Rateandamount.
   

To check the details of auto consumption of raw materials you can check theStockSummaryreport.

We will take the Component –Bottom Plate 8Ltrto 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 Registerand pressEnter.
Alternatively, press Alt+G(Go To) > type or selectMaterial In Register> and pressEnter.

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

1. Record the transaction in Material Transfer In Voucher

1. Gateway of Tally>Vouchers> pressF10(Other Vouchers) > type or selectMaterial Inand pressEnter.
   Alternatively, pressAlt+G(Go To) >Create Voucher> pressF10(Other Vouchers) > type or selectMaterial Inand pressEnter.
   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).
2. Enter theDate. InParty 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
3. InOrder Detailsscreen,
   1. UnderOrder Details, inOrder No(s)field select the Job Order from the List of Orders towards which the finished goods are received.
   2. UnderParty’s Document Details, inChallan Numberfield 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.
4. UnderName of Itemthe stock items (Finished Goods/Scrap/Co-product/By-product) will be auto-filled based on the Job Order selected.
5. ConsumptionGodown: 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:IfConsumption Godownis not selected the components will not be auto consumed even when the optionAllow Consumptionis enabled for the Voucher type. Hence selection of Source Godown is mandatory.
6. Select the stock Item –Cooker 12 Litreand press enter to viewItemAllocationscreen.
7. InStock Item Allocationsscreen,
   1. Set the optionConsider as Primary ItemtoYes.
   2. Order No- Job -001, Godown, Quantity, RateandAmount of the item will be displayed. Accept the default details.
8. InCost Tracking Tofield select theCost Tracking Number–Job Ex Out – 001to which cost needs to be tracked.
9. Select the stock item – AluminiumScrap. Set the optionConsider as ScraptoYes. InRatefield specify0.03.Amountwill be calculated and displayed.
10. The optionEnter Consumption Detailsby default will be set toYesand indicates that the consumption of Raw materials to manufacture the finished goods is Auto Consumption. Cursor willskipsthe field.
11. The completed Material In voucher is displayed as shown:
12. Accept the screen. As always, you can pressCtrl+Ato 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, createLabour ChargesandMaterial Costledgers underDirectExpensesby enabling the optionAllow Stock Item Cost AllocationtoYes.

Step 1: Create the Ledger (Job Work Charges)

1. Gateway of Tally>Create> type or selectLedgerand pressEnter.
2. Alternatively, pressAlt+G(Go To) >Create Master> type or selectLedgerand pressEnter.
3. Enter the name of the ledger inNamefield. For example, Job Work Charges.
4. Grouptheledger underDirect Expenses.
5. Set the optionAllow cost allocation (stock item)toYes.
6. In the Ledger master, pressF12(Configure) > setApply Cost Tracking of Stock Items for LedgerstoYes.
7. If you do not see this option, ensure that Enable Cost Tracking is set to Yes in F11 for your company.
8. Note:From Rel 4.8 an option to provide Bank Details is provided in the Ledger Master.
9. Similarly, createCost of Material ConsumedLedger.

Step 2: Record the transaction in Purchase Invoice

1. Gateway of Tally>Vouchers> pressF9(Purchase)
2. Alternatively, pressAlt+G(Go To) >Create Voucher> pressF9(Purchase)
3. Enter theDate as 20-7-20.
4. InSupplier Invoice No.field enter the bill number –4587/20-21.
5. InParty A/c Namefield select the Job worker Name –Mega Manufacturerfrom whom the Job Work bill is received.
6. UnderParticularsselectJob Work Chargesledger and inAmountfield specify the amountRs. 40,000and press enter viewStock Item Cost Allocationscreen.
7. InStock Item Cost Allocationscreen,
8. InCostTrackto 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.
9. InNameofItemfield by default the stock item with which the selected Cost tracking Number is identified will be displayed.
10. InQuantityfield, enter the Quantity towards which the cost to be tracked. For example,1000Nos.
11. Rate will be calculated and displayed automatically based on the Amount and the Quantity defined.
12. Note:Details ofCost trackedagainst theStock Itemcan be viewed inItem Cost AnalysisReports (Gateway of Tally > Display > Statements of Inventory > Item Cost Analysis).
13. UnderParticularsselectCost of Material Consumedledger and inAmountfield specify the amountRs. 2,000and press enter viewStock Item Cost Allocationscreen
14. InStock Item Cost Allocationscreen,
15. InCostTracktofield 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.
16. InName of Itemfield by default the stock item with which the selected Cost tracking Number is identified will be displayed.
17. InQuantityfield, enter the Quantity towards which the cost to be tracked. For example,1000 Nos.
18. Rate will be calculated and displayed automatically based on the Amount and the Quantity defined.
19. The Completed Purchase Invoice is displayed as shown:
20. Accept the screen. As always, you can pressCtrl+Ato save.

Note:In case, on theservicesprovidedby the Job WorkerServiceTaxis applicable user have to enableservice tax featurein 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

1. Gateway of Tally>Vouchers> pressF5(Payment)
2. Alternatively, pressAlt+G(Go To) >Create Voucher> pressF5(Payment)
3. InPayment Voucherchange the voucher mode toDouble Entryby pressingCtrl+H.
4. Enter theDateas23-07-2020.
5. InDebitfield selectMega Manufacturerledger to whom the payment is made.
6. InDebitAmountfield enterRs. 42,000.
7. InBill-wise detailsscreen select thebilltowards which the payment is made.
8. InCreditfield select theBank/Cashledger depending on the mode of payment.Amountwill be displayed automatically.
9. InBankAllocationscreen enter theChequeNumberthrough which the payment is made.
10. The completed Payment Voucher appears as shown:
11. Accept the screen. As always, you can pressCtrl+Ato 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, pressAlt+G(Go To) > type or select >Job Work Reportsand pressEnter

TheOrder Outstandingsreports are:

• Orders
• Components

Job Orders Summary Report (Job Work Out)

Job Order Summaryreport 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>Ordersand pressEnter

Alternatively, pressAlt+G(Go To) > type or select >Job Work Order Summaryand pressEnter.

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 viewParty WiseJob Order Summary report click onF5(Party-wise)or pressF5key 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 onAlt+W(Close Order)to viewJob Orders To Closescreen. InJob Order To Closescreen retainYesfor the optionClose Orders.

PressEnterto Close the Job work Out Order.

Note: OnClosing the Job Work Out Order the relatingcomponentsorderwill also get closed and components will not be displayed inComponent 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 OrdersDetails screen a buttonI(Receive Material)has been provided.

To account the Receipt of finished goods against the Job Work Out Order raisedselecttheJob OrderClickonI(Receive Material)button to viewMaterial Receive Configurationscreen

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: InMaterial In Voucher Typelist TallyPrime will list only thevoucher typesin whichUse for Job Work Inis set toYes.

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

SourceGodown: In this field select theGodownfrom where the materials are received. E.gJobWork (Out) Location.

InNarrationfield enter the transaction details.

The completedMaterial Receive Configuration screen is displayed as shown:

PressEnterto viewMaterial In (FG)voucher auto filled with the details. Voucher displays theFinished Goods/ Scrap /By-Product/ Co-Productto be received which are identified in the Job Work Out Order

InMaterial In (FG)Voucher if theFinished Goods/Scrap /By-Product/ Co-ProductQuantity received is different than theOrderedQuantity, 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 Summaryreport displays the components Outstanding (for issue) for a Job Orders raised.

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

Alternatively, pressAlt+G(Go To) > type or select >Job Work Components Order Summaryand pressEnter

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

Party Wise – Components Order Summary

To viewParty WiseComponents Order Summary report click onF5(Party-wise)or pressF5key 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 buttonI(Issue Material)has been provided.

To account the issue of finished goods against the Job Work Out Order raisedselecttheJob OrderClickonI(Issue Material)button To viewMaterial Issue Configurationscreen

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 thedateon which the material has been issued.

SourceGodown: In this field select theGodownto where the materials are issued. E.gJobWork (Out) Location.

InNarrationfield enter the transaction details.

The completedMaterial Issue Configuration screen is displayed as shown:

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

InMaterial Out (RM)Voucher if theComponents issuedare different than in theOrder, 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
• Material Out Register
• Material In Register
• Material Movement Register

Job Work Out Orders Book

Job Work Out Orders Bookdisplays 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 Bookand pressEnter.

Alternatively, pressAlt+G(Go To) > type or select >Job Work Out Orders Bookand pressEnter.

To view the monthly summary

1. PressAlt+N(Auto Column)
2. Set thePeriodicityasMonthly.
3. Set the optionShow Total?toYes.

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

Material Out Register Report (Job Work Out)

Material Out Registerdisplays 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 Registerand pressEnter.
  Alternatively, press Alt+G(Go To) > type or select >Material Out Registerand pressEnter.

Material In Register Report (Job Work Out)

Material In Registerdisplays 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 Registerand pressEnter.
  Alternatively, pressAlt+G(Go To) > type or select >Material In Registerand pressEnter.

Material Movement Register Report (Job Work Out)

Material Movement Registerdisplays 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 Registerand pressEnter.
  Alternatively, pressAlt+G(Go To) > type or select >Material Movement Registerand pressEnter.

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Column Description of Material Movement Register

• Order Number:This column displays theJob Order numbertowards 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 theJob Order numbertowards 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 theQuantityof each goods dispatched.
• Name and Address of Job Worker:This column displays theNameof theJobworkeron 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 ofMaterial Invoucher 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 Partyand pressEnter.
  Alternatively, pressAlt+G(Go To) > type or select >Stock From Partyand pressEnter.

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 Workerand pressEnter.
  Alternatively, pressAlt+G(Go To) > type or select >Stock with Job Workerand pressEnter.

Configuring the Report

PressF12 (Configure). The Configuration screen appears.

• Show Quantities, Show Rates, and Show Values: On enabling these options, the columnsQuantity,RatesandValueswill 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 Variancereport 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 varianceQuantityand thePercentageof variance.

Gateway of Tally>Display More Reports>Job Work Reports>Issue Varianceand pressEnter.

Alternatively, pressAlt+G(Go To) > type or select >Issue Variance Analysisand pressEnter.

Receipt Variance Report (Job Work Out)

Receipt Variancereport 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 Varianceand pressEnter.

Alternatively, pressAlt+G(Go To) > type or select >Receipt Variance Analysisand pressEnter.

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 Analysisand pressEnter.

Alternatively, pressAlt+G(Go To) > type or select >Stock Ageing Analysisand pressEnter.

• InSelect Itemscreen select thestockgroupfor which the Ageing Analysis report to be viewed.

TheStock Ageing Analysisreport is displayed as shown: