Tally.ERP 9 – Manufacturing

SIMPLE MANUFACTURING AND MATERIALS MANAGEMENT …!

The manufacturing business produces items with the usage of machines, tools, and labor. The core process of manufacturing involves raw materials that are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end-users – the “consumers”.

BUSINESSES IN MANUFACTURING CAN BENEFIT IMMENSELY FROM TALLY.ERP 9 BY THE FOLLOWING FUNCTIONS AND FEATURES:

STOCK ITEM CLASSIFICATION AS RAW MATERIAL, WORK IN PROGRESS, FINISHED GOODS:

The user can classify stock items as per his requirements. In manufacturing concerns, the user will primarily have three broad classifications (Stock Groups) i.e.

  • Raw Materials
  • Work in Progress
  • Finished Goods

All items that are procured to manufacture a particular item are called Raw Material & are grouped under the group ‘Raw Materials’, whereas, a product whose shape has changed, but has not reached its finished stage is called a Semi-finished item. These items will be grouped under the Group ‘Work-in-Progress’ and any item that is changed its shape/nature completely and reached the final form to sell is called finished Goods and is grouped under the ‘Finished goods’ group. The user can also create ledgers with the name Raw Materials, Work-in-Progress, and Finished goods under the group Stock-in-Hand. Once the user has deactivated the option ‘Integrate Accounts with Inventory’, based on the Closing balances entered by the user, Tally.ERP 9 automatically displays the total closing balances of all the ledgers grouped under the group Stock-in-Hand.

BILL OF MATERIAL WITH AUTO ADJUSTMENTS OF STOCK:

In many industries, especially assembly units there are several components involved in the manufacture of finished items. It is extremely difficult to issue stock items each time a product is manufactured. Such situations can be handled in Tally.ERP 9 by using Bill of Material. To generate a Bill of Material, create a new item (finished or intermediate product) and specify the components that go into the manufacturing of that finished/intermediate product. Now, using a manufacturing journal, specify the number of items to be manufactured. Tally.ERP 9 immediately selects all items that go into the manufacturing of the finished product and automatically adjusts (decreases) the stock. Any additional manufacturing cost like wages, power, water charges, etc, can be added to the value of the manufactured product.

ADDITIONAL COST OF MANUFACTURING WITH NOTIONAL VALUE AND PERCENTAGE:

When a product is manufactured, other than the component cost, there are manufacturing costs like labor, electricity, accessories, etc, which will have to be added to the cost of the product. In Tally.ERP 9, the additional cost can be added to the product while entering stock Journals or at the time of entering a manufacturing Journal (use B.O.M). The user can specify additional cost as a % of the component cost or even specify a notional value.