Manufacturing journal& preperation of manufacturing voucher examples

Last Updated on

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.

Step 1

How to create manufacturing voucher?

Go to

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

Step 2

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.

Step 3

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.


A garment factory manufacture 500 Shirts /per day

The material required Per Piece is

Raw materials ( Components) Quantity
Cloth 2 Meter
Buttons 8 Nos
Thread 1 Roll
Additional cost  
Stitching charges 10% on total cost


Go to

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
Cloth 2 Meter 150/Mtr
Buttons 8 Nos 1/No
Thread 1 Roll 4/No
By product  
Kerchief 1 No
Additional cost    
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.




  • suresh

    I purchased raw meterial and payment to, on NEFT

    • Nazir Husain

      F5 Voucher (Payment)
      Debit Purchases Raw materail A/c
      Credit Bank A/c
      in electronic Cheque mode of payment

  • Nisha

    i paid for internet charge so how it will be recorded in expenses. its expenses of office..

    • Abdul Aziz

      Office Expenses are taken in indirect expenses while creating ledgers and the entry is passed in payment voucher.

  • priyank

    thanks for the posting of manufacturing journal, help me a lot, but i am stuck at a point now

    when i add additional charges to it, it doesn’t reflect it in P&l a/c under direct expenses

  • Ron

    If sell products after value addition. How to show it on tally
    Eg : I purchase silver 100gms for 4000
    I then convert it to a silver chain and then sale
    Eg I sell silver chain for of 100gms for 4200+making charge 500 = 4700
    How to show this making charge in the tally sales invoice? And how to create the ledger of making charge

  • Rajat Hansaria

    When I add additional expenses in manufacturing journal, it is not reflected in the profit and loss account.

    • Abdul Aziz

      Pass the expenses entry again in payment voucher, then it will reflect in p&l a/c.

  • Vikash

    What can I do when raw material in one piece and finished goods in three piece like
    Chana 100 kg raw material
    Finished goods is
    Chana daal 70 kg
    Chana chilka 10 kg
    Chana churi 10 kg
    Chana powder 5 kg

  • shiva

    sir my raw material is metal a 1000 gms
    metal b 428 gms
    and i recive finished product – 1425 gms
    manufacturing charges – 285 rs
    1) how to put entry ? in manufacturing journal or material in &material out
    2) when is manuf.(stock journal) used , whn is material in and out used


Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »
error: Content is protected !!