1. In the Name of Product field, select the product which needs to be manufactured from the List of Items. The Item selected in Name of Product field will be the primary Item which will be manufactured using different components.
2. In the BOM Name field, select the Bill of Material if you want the components utilised to manufacture the finished goods to be displayed automatically.
Note: In case BOM is selected the Components used for the manufacture of finished goods & the By-Products/Co-Products or Scrap produced during manufacturing will be defaulted.
3. In the Quantity field, enter the quantity of goods produced.
The % of Cost Allocation field displays the Percentage of Cost of Allocation to the Primary Item manufactured.
§ Note 1: In a manufacturing process if there are no by-Products/co-products or scrap produced then the % of Cost of Allocation to Primary Item will 100%
§ Note 2: If there are any by-products/Co-products or scrap is manufactured then the % of Cost of Allocation to primary item will be Total Cost - Cost allocated to By Products /Co Products /Scrap.
Under Components (Consumption), the list of Sub-Component items that will be used to produce the finished goods need to be selected.
4. In the Name of Item field, select the components used for the manufacture of finished goods.
5. In the Quantity field, mention the Quantity of Raw materials required to manufacture the finished goods.
6. In the Rate field, mention the rate (purchase cost) of the raw materials used in the manufacture of finished goods.
The Amount will be calculated automatically based on Quantity & Rate of item.
Under Co-Products/ By-Products /Scrap, the list of By-products/ Co-products or Scrap produced during the manufacture of finished goods need to be selected.
7. In the Name of Item field, select the By-product/Co-product/Scrap name which is produced in the process of manufacture of finished goods.
8. In the % of Cost Allocation field, specify the % of cost of allocation to be made towards the By-product/Co-product/Scrap produced.
9. In the Quantity field, mention the Quantity of By-product/Co-product/Scrap produced.
- Rate: This is the rate of producing of By-product/Co-product/Scrap. (Rate = Amount/Quantity) Rate will be displayed automatically
- Amount: Amount will be displayed automatically based on the % of Cost Allocation defined for the By-product/Co-product/Scrap produced. Tally.ERP 9 calculates the % of Cost Allocation on Effective Cost