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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. |
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In the F11: Features (Accounting Features),
‡ Set Maintain Cost Centres to Yes.
‡ Set Use Cost Centre for Job Costing to Yes. |
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Each job is identified with a name or number and this is used while creating the cost centre for the job. Create Upgrading Job as a Job Cost Centre under Primary.
Go to Gateway of Tally > Accounts Info. > Cost Centres > Single Cost Centre > Create
1. Name: Upgrading Job
2. (alias): Skip field
3. Under: Select Primary from List of Cost Centres
4. Use for Job Costing: Yes |
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Create the following ledger,
Name |
Under |
Inventory values are affected |
Cost Centres are applicable |
Purchase |
Purchase Accounts |
Yes |
Yes |
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Godowns are geographical locations or persons responsible for stock handling. Whereas, Dedicated Godowns are created to keep track of stocks transferred, consumed and manufactured for each job. |
Create a Dedicated Godown allotted to holding stocks for a default job and a normal Godown, used regularly and not assigned to any particular job. |
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In Tally.ERP 9, stock journals are used for the following purposes:
‡ To record the stages in the manufacturing process.
‡ To record the transfer of materials between godowns.
‡ To record the consumption of materials for Job Costing.
Create one new Voucher Type and two Voucher Classes to deal with the scenarios in a manufac- turing as well as non-manufacturing environment. |
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On 1-4-09, Computer Associates, placed an order with Reliable Computers for the following items : |
Name of Item |
Quantity |
Rate per Unit |
Value |
Mother Boards |
12 |
3,000 |
36,000 |
Hard Disk |
12 |
4,500 |
54,000 |
Mointors |
22 |
7,500 |
1,65,000 |
CPU |
22 |
2,750 |
60,500 |
Keyboard |
27 |
725 |
19,575 |
Mouse |
27 |
250 |
6,750 |
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On 2-4-09, received a purchase bill from Reliable Computers for the supply booked. |
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Computer Associates has employed Raj and Archana. The following components have been issued to them on 4-4-2009 for the upgrading job.
Details of Stock issued to Raj :
Name of Item |
Godown |
Quantity |
Rate |
Value |
Mother Boards |
Stores |
6 |
3,000 |
18,000 |
Hard Disk |
Stores |
6 |
4,500 |
27,000 |
Details of Stock issued to Archana :
Name of Item |
Godown |
Quantity |
Rate |
Value |
Mother Boards |
Stores |
6 |
3,000 |
18,000 |
Hard Disk |
Stores |
6 |
4,500 |
27,000 |
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On 5-4-2009, Raj and Archana found that 8 Systems needed a replacement of Mother Boards and Hard Disk. The respective consumption has to be recorded as a job cost.
Name of the Item |
Godown |
Quantity |
Rate |
Value |
Mother Boards |
Raj |
4 |
3,000 |
12,000 |
Mother Boards |
Archana |
4 |
3,000 |
12,000 |
Hard Disk |
Raj |
4 |
1,000 |
4,000 |
Hard Disk |
Archana |
4 |
1,000 |
4,000 |
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On 6-4-09, Computer Associates made a cash payment of Rs. 31,250 as Service Charges and Rs. 20,000 as Travel Expenses, collectively to Raj and Archana. The costs were assigned to Upgrading Job. |
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On 6-4-2009, Raj and Archana successfully completed the upgrading job at SimplyC Solu- tions. Computer Associates raised an invoice on 6-4-2009 for the upgrading job. |
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On 6-4-2009, Raj and Archana return the remaining components to the stores having completed the job.
Name of the Item |
Godown |
Quantity |
Rate |
Amount |
Mother Boards |
Raj |
2 |
3,000 |
6,000 |
Hard Disk |
Raj |
2 |
4,500 |
9,000 |
Mother Boards |
Archana |
2 |
3,000 |
6,000 |
Hard Disk |
Archana |
2 |
4,500 |
9,000 |
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Go to Gateway of Tally > Display > Statement of Accounts > Job Work Analysis
‡ Select the Upgrading Job to view the Job Work Analysis report for Upgrading Job |
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A Material consumption summary is a report that reflects the total material consumed from a godown alloted for a job. To arrive at the Material Consumption Summary
Go to Gateway of Tally > Display > Statement of Accounts > Job Work Analysis
‡ Press Enter on Consumption |
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Computer Associates would like to compare the total jobs executed by them for SimplyC Solu- tions.
Go to Gateway of Tally > Display > Statement of Accounts > Job Work Analysis > New Sys- tems Job >
‡ Select New Column from the Buttons bar and select the Upgrading Job.
‡ Select any number of jobs as required. |
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