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'Basics, Configuration, Setup of JOB Costing' @ Tally.ERP 9

Basics :

Job Costing applies to specific jobs undertaken according to customer requirements and specifi- cations. Tally.ERP 9 enables the tracking of cost and revenue information down to the smallest detail.


In order to determine the actual costs incurred, every job is assigned a job number or a job name. Job costing systems determine the costs separately for each product or service, based on the jobs undertaken.


In a typical job costing environment:


       Many non-standard (customised) products/ service are produced/ rendered.

       Orders are executed based on customer requirements.

       Cost records are maintained for each distinct job.

       Costs are traced or allocated to jobs.



The advantages of Job Costing are as follows.


       Costs can be alloted to each element while the job is in progress.

       On the completion of a job, each element of cost, selling price and profit can be compared with estimates made earlier and other similar jobs.

                    Suitable methods can be used to determine the price on a cost plus contract basis.

Configuring Job Costing In Tally.ERP 9 :


Let us consider Computer Associates to understand the Job Costing feature of Tally.ERP 9. Computer  Associates  supplies  computers  configured  as  per  customer  requirements  and upgrades old computers.


 1. Company Setup


Create a company called Computer Associates as shown below : The completed Company Creation screen appears as shown below:
                    Press Y or Enter to accept the company creation screen.

Computer  Associates  received  two  orders  from  SimplyC  Solutions  to  upgrade  existing systems and deliver new systems.


The order details are given in the table.


Order Description

Terms of Contract



Servicing and Upgrading of existing machines.

Lump  sum  contract,  inclusive  of replacement of parts



Installing  new  systems  as per specifications

Rate contract based on requirement of systems



Other Details


        The company has given the servicing and upgrading job collectively to Raj and Archana.

The Service Charges amounts to Rs. 62,500 and Travel Expenses for visits made onsite are Rs. 25,000

        The company has given the job of installing new systems job to Rajesh

        Service Charge Rs. 62,500 and Travel Expenses for visits made onsite-Rs. 25,000

                    The company has a stores godown and regularly purchases items from Reliable Comput- ers.


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