Manufacturing Journal Voucher

Go to Gateway of Tally > Inventory Vouchers > Alt +F7 >  select Manufacturing Journal

For more information on creating Manufacturing Voucher type refer Creating Manufacturing Journal.

Name of Product

Select the product which needs to be manufactured from the List of Items. The Item selected in Name of Item field will be the primary Item which will be manufactured using different components.

BOM Name

Select the Bill of Material if you want the components utilised to manufacture the finished goods to be displayed automatically.

Note: If 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.

For more details on creating BOM & recording Manufacturing Journal using BOM refer the topic - Creating Bill of Materials for a Stock Item

Godown

Select the godown where you would like to place the produced goods.

Quantity

Enter the quantity to be produced.

% of Cost Allocation

This field displays the Percentage of Cost of Allocation to the Primary Item manufactured.

Note: 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%.

 

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.

Batch Name, Mfg Date, Expiry

If the item to be manufactured in batches then enter the Batch Name, Manufacturing Date and Expiry Date.

Components (Consumption)

The list of Sub-Component items which will be used to produce the finished goods, need to be selected here.

  1. Name of Item: In this field select the components used for the manufacture of finished goods.

  2. Godown: In this field select the Godown from where the components are consumed for production.

  3. Quantity: In this field mention the Quantity of Raw materials required to manufacture the finished goods.

  4. Rate: In this field mention the rate (purchase cost) of the raw materials used in the manufacture of finished goods

  5. Amount: In this field the Amount will be calculated automatically based on Quantity & Rate of item

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 here

  1. Name of Item: In this field select the By-product/Co-product/Scrap name which is produced in the process of manufacture of finished goods

  2. Godown: Select the godown where the By-product/Co-product/Scrap produced will be stored

  3. % of Cost Allocation: In this field specify the % of cost of allocation to be made towards the By-product/Co-product/Scrap produced

  4. Quantity: In this field mention the Quantity of By-product/Co-product/Scrap produced

  5. Rate: This is the rate of producing of By-product/Co-product/Scrap. (Rate = Amount/Quantity) Rate will be displayed automatically

  6. 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

In the above example: Amount of By-Product 1(5,050) = 20,20,000 (Effective Cost) X 0.25\100 (% of Cost Allocation)

Cost of Components

This field displays the total cost of the components (raw materials) used in the manufacture of finished goods.

Type of Addl. Cost

Enter the additional cost incurred for manufacturing the finished goods, if any.

Total Addl. Cost

The total of all additional cost will be displayed here.

Effective Cost

The Effective cost is total of Cost of Components (Consumption) + Additional Cost incurred to manufacture the finished goods & Co-Product/By-product or Scrap

In the above example: 20,00,000 + 20,000 = 20,20,000 is incurred manufacture Item B (Primary Item), By-Product 1 & Scrap

Allocation to Primary Item

The cost allocated to manufacture the Primary Item will be displayed in this field.

Allocation to Primary Item = Effective Cost - Total cost of Co-products/By-Products/Scrap

Effective Rate of Primary Item

This is the rate of the Primary Item Manufactured (finished item).

In the above example: 20,08,890 / 2000 (number of Item B produced) = 1004.45/nos.

Manufacture of Finished Goods without By-Product/Co-Product/Scrap

In some manufacturing processes, only finished goods will be produced without any By-product/Co-product/scrap. In those cases, users may not need the provision to move to By-Product/Co-product/scrap section. You can configure the movement of cursor to By-Product/Co-product/scrap section.

In case, where you don't have By-Product/Co-product/scrap details, then you can configure the Manufacturing Journal to skip the movement of cursor to that section.

In F12: Configure (Stock Journal Configuration)

Note: When the option Skip Co-Product/By-Product/Scrap Stock Item is band the user is recording a Manufacturing Journal for a stock item for which the BOM is created by capturing the details of By- Product/ Co- Product/ Scrap; then Tally.ERP 9 will ignore the configuration and will capture the details of By- Product/ Co- Product/ Scrap. It will also allow to modify the details in By- Product/ Co- Product/ Scrap section.


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