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7. Bill of Material (BoM) in Tally.ERP9

A Bill is termed as an authenticated document for the materials which are taken out from the stock either for sale or for transfer to other godowns or for manufacturing, etc. In order to avoid this con- tinuous process of issuing a bill at every stage, a system has been evolved wherein the items with their quantity details can be allotted towards manufacturing a certain product or by-product. This facilitates the immediate reduction in stock of the item automatically. This process of listing the items that make up another item is termed as the Bill of Materials (BoM).
 

7.1. Creating Bill of Materials

You can create a Bill of Material (BoM) for any stock item. Typically, a BoM can be created at the time of manufacturing/ assembling the item. You may specify a BoM at the time of creating a stock item or altering its master.

 

National Traders is engaged also in the business of assembling and manufacturing Televisions.

 

 To enable Bill of Materials feature,

 

Setup:

 

Ensure that you are in National Traders,

 

Go to Gateway of Tally > F12: Configure > Accts / Inventory Info.

 

        set Allow Component list details (Bill of Materials) to Yes

 

 

Step 1 : Creating Bill of Materials

 

        Create the following stock item (Final Goods) :

 

 

Name of Item

Under

Category

Units

Maintain in Batches

Set Components (BoM)

Television   Flato- ron

Home Electronics

Not

Applicable

Nos

No

Yes

 

 

        In the Components of: Television Flatoron, enter the Unit of manufacture (the number of items to be manufactured) as 1.

        In the Item details section, create these items without any opening balances. Select 1 unit of these items and store them in the On-site godown.

 

 

Name of the Item

Stock Group

Standard Cost (in Rs.) Applicable from

1-12-2009

Units of

Measure

VDU

Television Flatron

2,000

Nos

Picture Tube

Television Flatron

3,750

Nos

IC Chips

Television Flatron

5,000

Nos

Sound card

Television Flatron

500

Nos

Aerial

Television Flatron

300

Nos

 

 

The Bill of Material component screen of Television Flatoron appears as shown below :
Bill of Material (BoM) in Tally.ERP9

        Accept the above settings for the item Television Flatoron.

 

The purpose of creating a bill of material is to enable the consumption of the materials in the ratio specified,  when the product is manufactured. Tally.ERP 9 allows us to use a Manufacturing Journal to enter the goods manufactured with the bill of materials.
 

7.2. Creating a Manufacturing Journal

To create a new Manufacturing Journal,

 

Go to Gateway of Tally > Accounts Info. > Voucher Type > Create

 

1. Type Manufacturing Journal as the Name

2. Under Voucher Types, select Stock Journal

3. Type Mfg Jrnl for abbreviation and select automatic voucher numbering

4. Select Yes for Use as Manufacturing Journal and accept the screen

 

 The Manufacturing Journal voucher type creation screen appears as shown

Bill of Material (BoM) in Tally.ERP9
5. Press Ctrl+A to accept the above screen and return to the Gateway of Tally.
 

7.3. Using Bill of Materials

On 21-12-09, bought  10 pcs of  each of  the following items  from Star  Electronics @

standard cost as mentioned below :

 

Name of the Item

Standard Cost (in Rs.) Applicable from

1-12-2009

VDU

2,000

Picture Tube

3,750

IC Chips

5,000

Sound card

500

Aerial

300

The total purchase invoice value amounted to Rs. 1,15,500. The above goods are stored in On- Site.  A Cheque was paid from Bank Account immediately.

 

On the same day, 5 Nos of Television Flatoron is manufactured in On Site godown. Additional expenses of Rs. 3,000 and Rs. 2,000 was incurred towards Wages and Power respectively.

 

 

Step 1: Create Purchase Invoice

 

Go to Gateway of Tally > Inventory Vouchers > F9: Purchase

 

1. Select the Party as Star Electronics

2. Allocate to Purchases Account

3. Select the items with the quantity and standard rates as given in the table above

4. Select the Godown as Onsite

5. Accept the entry

 

 

Step 2: Create Manufacturing Journal

 

Go to Gateway of Tally > Inventory Vouchers > Alt+F7: Stock Journal.

 

1. Select the Manufacturing Journal and ensure that the date is 21-12-2009.

2. Under the Name of Product to be manufactured, type Television Flatoron (you will notice the items given in the master as Bill of Materials appear automatically).

3. Manufacture it in On-Site.

4. Quantity to be manufactured - 5 (you will notice the rates of the items appear automatically).

5. Under Additional Cost Components, specify additional cost of Wages - 3,000 and Power -2,000 (If the ledger accounts for these expenses do not exist, create them under Direct Expenses).

The completed Manufacturing Journal as shown below
Bill of Material (BoM) in Tally.ERP9

6. Type the narration and press Y or Enter to accept the screen.

7. Return to the Gateway of Tally.

 

 

Display Stock Summary

Go to Gateway of Tally > Stock Summary

        Press Enter on Home Electronics

 

You will find that the closing quantity, rate and value details for the stock item - Television Flatoron.

Practice Exercise

Load Indus Enterprises, make the following entries

 

1. Create a Manufacturing Journal for manufacturing 1 Nos of Computer from the following components :

Name of the Item

Qty

Hard Disk Drive

1 Nos

Floppy Disk Drive

1 Nos

CPU

1 Nos

Monitor

1 Nos

Keyboard

1 Nos

Mouse

1 Nos

Setup :

 

       Create a BOM for stock item Computer which requires the following items.

          Hard Disk Drive - 1 Nos

          Floppy Disk Drive - 1 Nos

          CPU - 1 Nos

          Monitor - 1 Nos

          Keyboard - 1 Nos

          Mouse - 1 Nos

       Store them in the Bangalore godown.

 
 
Text
 
Company Information @ Tally.ERP9
 
Group & Ledger

Introduction
1. THE GROUP
2. THE LEDGER
3. VOUCHERS TYPES

Advanced Inventory / Stock
Meaning
Order Processing
Re-Order Levels
Tracking Numbers
Batch-wise Details
Additional Cost Details
Bill of Materials (BOM)
Price Lists and Price Levels
Stock Valuation
Zero Valued Entries
Inventory Ageing Report
Actual and Billed Quantities
Advanced Usage of Vouchers
Maintain Bill-wise Details
Cost Center and Cost Category
Interest Calculation
Reversing Journals
Post-Dated Voucher
Memo (Memorandum) Voucher
Optional Voucher
Using Tracking Number
Tally.ERP9 Report
  1. Unit Objectives
  2. Modifying Reports (Options)
  3. Balance Sheet
  4. Profit & Loss Account
  5. Stock Summary
  6. Trial Balance
  7. Day Book
  8. Books of Accounts
  9. Statement of Accounts
  10. Inventory Books
  11. Statutory Reports
  12. List of Accounts ( Chart of Accounts)
  13. Exception Reports
  14. Printing Reports
Tally.ERP9 MIS and Other Reports
Statutory & Taxation
Utilities & Others @ Tally.ERP9
Credit Limits
Knowledge Base @ Tally.ERP9
Stock Items
Stock Groups
Inventory Masters
Inventory Vouchers
Inventory Report Statements
Balance Sheet
Accounting Reports
Accounting Vouchers
Interest Calculation
VAT-Value Added Tax
Service Tax
TDS (Tax Deducted at Source)
 
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