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 continuous 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).
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,
Ensure that you are in National Traders,
Go to Gateway of Tally > F12: Configure > Accts / Inventory Info.
Alternatively…at the time of Creation / Alternation of Stock Item, Press F12 : Configuration
Maintain in Batches
Set Components (BoM)
In the Components of: Television Flatoron, enter the Unit of manufacture (the number of items to be manufactured) as 1.
In the Item details create these items without any opening balances. Select 1 unit of these items and store them in the On-site godown.
Standard Cost (in ₹.) Applicable from
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
5. Press Ctrl+A to accept the above screen and return to the Gateway of Tally.
On 1-7-2017, bought 10 pcs of each of the following items from Star Electronics @ standard cost as mentioned below with GST @ 18% :
Standard Cost (in ₹. ) Applicable from
The total purchase invoice value amounted to ₹. 1,36,290. 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 ₹. 3,000 and ₹.. 2,000 was incurred towards Wages and Power respectively.
Go to Gateway of Tally > Inventory Vouchers > F9: Purchase
1. Select the Party as Star Electronics
2. Allocate to Purchases @18% 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
Go to Gateway of Tally > Inventory Vouchers > Alt+F7: Stock Journal.
1. Select the Manufacturing Journal and ensure that the date is 2-7-2017.
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)
6. Type the narration and press Y or Enter to accept the screen
7. Return to the Gateway of Tally.
Go to Gateway of Tally > Stock Summary
Load Indus Enterprises, make the following entries
1. Create a Manufacturing Journal for manufacturing 1 Nos of Computer from the following components
Hard Disk Drive
Floppy Disk Drive
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