In this chapter we will discuss about convertion of Raw materials into finished items
with a simple formula.Once we create a formula in BOM (bill of materials) and enter inputs of finished
goods in .
Gateway of tally>inventory vouchers> Mfg Journal
You can create a bill of material (BoM) for any stock item. Typically, you would like to create a BoM only for those items that are being assembled in-house. For trading items, you do not need a BoM. Therefore, we need to specify a BoM at the time of creating a stock item (or altering its master)
Let us create a new stock item and specify its BoM.
Gateway of Tally > Inventory Info > Stock Items > Create
This screen contains information for Britain/Europe.
Some information like Batches, Alt. Units and Intrastate Classification depend upon the company features, configuration and invoicing set-up. Please refer to the relevant stock item creation section for more details.
The difference for India/Asia would be in the terminology for tax/duty:
For details on fields other than Set Components (BoM) please refer to the Stock Item Creation section under Inventory Information Chapter. Here, we shall restrict our discussion to BoM only.
When you activate Set Components (BoM) by selecting Yes, a pop-list for the components now needs to be filled in.
Unit of Manufacture
Give the appropriate (usually the minimum) number of the finished product item that will be made. While manufacturing (and recording through a stock/manufacturing journal), you will make the item in multiples of this unit of manufacture. At that time, the components will also multiply by the same factor automatically. (You are, of course, allowed to alter the components while recording to reflect actual consumption, if there is a change from BoM).
Note: However, that in certain circumstances, it is better to give a larger unit of manufacture, e.g. , per 1000 Pcs of nails, as per nail consumption of raw material will be too insignificant.
Item, Location (godown) and Quantity
Give the component name and quantity and, if multiple locations (godowns) have been set up, the most likely location for the item.
Again, by specifying the location here, you are not restricted to that location during transaction/voucher entry. The locations would default to these but you can opt for another.
Input your options for other questions for the stock item and accept the screen.
The stock journal/manufacturing journal entry screen
Gateway of Tally > Voucher Entry > Click on Stk. Jrnl
If you had created a new voucher type Mfg Journal, a pop-up menu will show both the default Stock Journal and the Mfg. Journal.
Select Mfg. Journal