Manufacturing journal& preperation of manufacturing voucher examples
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Creation of Bill of material was the subject of previous lesson, which is essential for entering a manufacturing transaction? In tally entering a manufacturing transaction we use “manufacturing journal”.
Before entering a manufacturing journal there must be a manufacturing voucher, let’s see how this can be created.
How to create manufacturing voucher?
Gateway of Tally>>Accounts info>>Voucher Types>>Create
In the voucher type creation screen fill up the field as follows.
Name: Manufacturing Journal
Type of voucher: Stock Journal
Use as a manufacturing journal: Yes (this is very important)
Press Enter Key or use Short cut Ctrl+A to save the voucher
Creating Bill of material, this is the pre defined set of component required for manufacturing product. To know how to create bill of material go here.
Create Expense ledger for additional manufacturing cost like stitching charges.
Now let’s enter manufacturing transaction.
We are using the following examples to learn manufacturing journal.
IN A GARMENT FACTORY
A garment factory manufacture 500 Shirts /per day
The material required Per Piece is
|Raw materials ( Components)||Quantity|
|Stitching charges||10% on total cost|
Gateway of Tally >>Inventory Vouchers>>
Press Alt + F7 or click on Stk Jrnl button. In the voucher type selection screen select Manufacturing journal and fill the field required
Name of product: Shirt
On selecting the finished product (SHIRT) the raw material/component and godown name will be selected automatically under components.
BoM Name: “Shirt 40”. Select the Bill of material from the list if there is only one BOM that will select automatically.
Godown : The godown in which the finished goods are stored
Qty: The number of units manufacturing. Here it is 500
Now the name of item, godown, and quantity filled automatically after entering above items
Enter rate of each item, the rate should be the cost of material or purchase price.
As there is no by product in this manufacturing, Leave blank Co-Product /By-Product/Scrap
In the bottom, Just under cost of components enter additional cost, here we have created stitching charges ledger. Select it and type the percentage 10%, the additional cost will be calculated automatically.
Finally Enter Narration if any, and save the voucher
So the Components are converted in to finished product, while verifying the stock item you will understand that the stocks of raw materials have decreased and finished goods have increased.
Manufacturing Journal with by product
In some manufacturing process, we will get by products or scrap. Learn this with the following example
|Raw materials ( Components)||Quantity||Rate|
|Stitching charges||12% on total cost|
Create a Bill of material with item Kerchief; you can learn this here under heading BOM with material.
Enter details as shown in the images and save.