Manage Job Work In TallyPrime

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Manage Job Work In TallyPrime

Job work is when a business outsource certain tasks like manufacturing a certain part of a unit. This is mainly done due to the expertise of the job worker. In Tally there are provisions to handle job work as well.

Let us understand in parts how the different entries are made.

Job work in Order Voucher

  • In Tally, you can record your job orders using the job work in order voucher of TallyPrime. 

  • To open the job work order voucher go to ‘Gateway of Tally’ > Vouchers > F10 > Type ‘Job work in order’ > press Enter.

  • This will open the job work in order voucher. Now you will fill all the details like the 

    • Party A/C Name: Enter the name of the business that has given you the job work order.
    • Duration of Process: The deadline of the job work.
    • Nature of Processing: Enter the description of the process
    • Note: In the Job Work In 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
    • Similarly fill in the Order No, Name of Item, Item Allocation for, For Order Number and Track Components, Due on, Go-down, Quantity, etc
  • Press CTRL + A to save the voucher.
  • You can view these vouchers in the Job Work Orders report by going to Gateway of Tally > Display More Reports> Job Work Reports > Job Work In Orders book and press Enter.

Receipt of Material towards Job Order

Semi-finished goods are sometimes received for processing, to create this record, follow these steps -

  • Gateway of Tally > Vouchers > F10 > type ‘Material In’ > press Enter.

  • Enter the date and fill out all the details as discussed above and as per the nature of the work.

  • Next, press ‘CTRL + A’ to save the voucher.

Transferring Own Consumed Goods for Production

In some scenarios, a job worker may use their own materials to produce goods for the principal manufacturer and charge these costs accordingly. Here's an example and the steps to record such a transaction in Tally:

Example Scenario:
On 10-07-2023, Global Industries transferred materials to produce 500 fans. The job worker used bolts and lubricant from their own inventory:
Bolts:1000 units
Lubricant: 10 cans
Steps to Record the Transaction:

  • Go to Gateway of Tally > Vouchers > F10 > Type - Material In > Press Enter.

  • If inactive, activate the Job Work In Order voucher type.

  • Party A/C Name: Select the Principal Manufacturer (e.g., Star Appliances).

  • Order No(s): Select End of List.

  • Name of Item: Select Bolts and press Enter.

  • Stock Item Allocation Screen:

    • Tracking Number: Create a new number, e.g., Job In – 002.
    • Go-down: Select the Go-down from where the stocks are transferred.
    • Quantity & Rate: Enter the details.
  • Name of Item: Select Lubricant.

  • Item Allocation Screen:

    • Tracking Number: Enter Job In – 002.
    • Go-down: Select Raw Material Warehouse.
    • Quantity & Rate: Enter the details
  • Accept the screen with Ctrl+A.

Manufacture of Finished Goods

To record the manufacturing of finished goods in Tally, follow these steps:

Example Scenario:
On 15-07-2023, Global Industries manufactured 500 Electric Fans.

Steps to Create and Use a Manufacturing Journal -

  • To create a Manufacturing Journal:

    • Gateway of Tally > Create > Voucher Type > Enter.
    • Name: Enter Manufacturing Journal.
    • Type of Voucher: Select Stock Journal.
    • Use this Voucher Type for transactions > Yes.
    • Use as a Manufacturing Journal > Yes.
    • Save with Ctrl + A.
  • Record the Transaction

    • Gateway of Tally > Vouchers > F10 (Other Vouchers) > Manufacturing Journal > Enter.
    • Date: 15-07-2023.
    • Name of Product: Electric Fan.
    • Go-down: Select the Go-down for storing finished goods.
    • Quantity: 500.
    • Cost Tracking: Select Job In – 002.
    • Components (Consumption): Enter details of components used.
    • Co-Product/By-Products/Scrap: Enter details if any.
    • Accept the screen with Ctrl+A.

Delivering Finished Goods Towards a Job Order

Once production is complete, the finished goods are delivered to the Principal Manufacturer. This transaction is recorded using Material Out vouchers.

Example Scenario:
On 20-07-2023, Global Industries delivered 500 Electric Fans and 100 kg of Metal Scrap to Star Appliances.

  • Steps to Record the Transaction:

    • Gateway of Tally > Vouchers > F10 (Other Vouchers) > Material Out > Enter.
    • Date: 20-07-2023.
    • Party A/C Name: Select the Principal Manufacturer (e.g., Star Appliances).
    • Order No(s): Select the relevant Job Order.
    • Destination Go-down: Select Not Applicable.
    • Name of Item: Select Electric Fan and press Enter.
    • Stock Item Allocation Screen:
      • Consider as Scrap: No.
      • Cost Tracking To: Select Job In – 002.
    • Name of Item: Select Metal Scrap.
    • Consider as Scrap: Yes
    • Complete the Material Out voucher and accept the screen with Ctrl+A.
  • To print the Delivery Document:

    • Press Page Up to view the Material Out voucher.
    • Press Alt+P or click P: Print to print the delivery document.

Raising Sales Bill for the Job Work

After delivering finished goods and any scrap/by-products, the Job Worker raises a sales invoice for the Principal Manufacturer, detailing the cost of manufacture and materials consumed.

Example Scenario:
On 30-07-2023, Global Industries raised an invoice for Galaxy Manufacturers for Rs. 30,000 (Job Work Charge – Rs. 28,000 & Cost of Material Consumed – Rs. 2,000).

Steps to Create and Record the Sales Invoice:

  • Create Job Work Charges Ledger

    • Gateway of Tally > Create > Ledger > Enter.
    • Name: Job Work Charge.
    • Group: Direct Incomes.
    • Save with Ctrl+A.
  • Record the Sales Invoice:

    • Gateway of Tally > Vouchers > F8 (Sales).
    • Date: 30-07-2023.
    • Party A/C Name: Select Galaxy Manufacturers.
    • Delivery Note No(s): Select the tracking number (Job In – 002).
    • Select Job Work Charge ledger: Enter the amount.
    • Stock Item Cost Allocation Screen:
      • Cost Tracking: Select Job In-002.
      • Quantity: 500.
    • Bill-wise Details: Enter the bill name (e.g., Bill-002).
    • Accept the screen with Ctrl+A.

Recording Receipts from Principal Manufacturer Towards Job Work Bill

Upon receiving payment for the job work bill, record the transaction in a Receipt Voucher.

Example Scenario:
On 05-08-2023, Global Industries received Rs. 30,000 via cheque from Star Appliances for Bill-002 dated 30-07-2023.

Steps to Record the Receipt:

  • Gateway of Tally > Vouchers > F6 (Receipt).

  • Change voucher mode to Double Entry with Ctrl+H.

  • Credit: Select Star Appliances and enter Rs. 30,000.

  • Bill-wise Details:
    • Type of Ref: Agst Ref.
    • Name: Select Bill-002.
  • Debit: Select Cash/Bank ledger and enter the amount.

  • Bank Allocation Screen: Enter cheque number, bank name, and branch.

  • Accept the screen with Ctrl+A.

These steps outline the detailed process of handling job work transactions in Tally, from transferring materials to recording receipts. The features of Tally allow for a smooth job work process. However, this process can be enhanced with a Job Work Module developed by Antraweb. This module further improves the process by interlinking and integrating different parts of the data, such as sales, stock, and job work, to ensure easier and faster processing in Tally.

The Job Work module in Tally allows for redefining the entire job work process, ensuring you can set the final cost of the finished goods based on the actual price after adding the profit margin, job work process costs, and miscellaneous costs. Additionally, it provides easy tracking of the whole job work process, preventing duplication of invoices or any malpractice. You can also reconcile the bills to ensure all data is accurate and correct any discrepancies.

With default Tally, you can completely record all job work data. However, with the Antraweb Technologies Job Work Module, you can make your job work process more time-efficient and accurate by reducing human errors through the reconciliation feature and auto-fill option in Tally.

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