Tally.

ERP 9
Job Work Out in Tally.ERP 9
Did you know that Tally.ERP 9 can fulfill all your Job Work requirements and provide real time record of
materials coming in and going out? Now, generate Job Work reports and get accurate stock positions anytime
you want.

Taking care of all the materials moving in and out for Job Work requires a proper tracking system and
the ability to provide instant reports. This process, if done manually, is complicated, error-prone and time-
consuming. However, Tally.ERP 9 provides a powerful ‘Job Work Out’ feature that simplifies handling the Job
Work process. Users can now track all Job Work transactions and generate reports instantly with all the
applicable statutory requirements. In Tally.ERP 9, the process of Job Work Out has the following steps:

Let’s consider a company ‘ABC Company’ which delegates the job of packaging 200 Software CDs to
a Job Worker called ‘XYZ Company’. To enable Job Work feature:
 Go to Gateway of Tally > F11: Features > Inventory Features
 Set ‘Yes’ to ‘Allow Job Order Processing’

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Tally.ERP 9
Note: ABC Company has ‘XYZ Company’ ledger grouped under ‘Sundry Creditors’ and ‘Finished
Goods (Software CD) with Bills of Materials’ and ‘Scraps’ specified.

There are four Godowns – Raw Materials Location to store raw materials, Scrap Location for scraps,
Job Work Out Location for raw materials delivered to the Job Worker (Our stocks with Third Party) and
Finished Goods Location for finished goods received from Job Worker.

To record material movement, we will alter Material Out and Material In voucher types. To do this:

 Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter

Use the settings given below:

Type of Method of User for Use for Job Allow

Voucher Voucher Job Work Work In Consumption
Numbering
Material Out Automatic Yes No Not Available

Material In Automatic Yes No Yes

Recording Job Work Out Transactions:

1. To record Job Work Out Order for packaging of 200 CDs:

 Go to Gateway of Tally > Order Vouchers > J: Job Work Out Order
 Select ‘XYZ Company’ in ‘Party A/c Name’ > Enter the required ‘Party Details’
 Enter ‘Job001’ in ‘Order No’
 Select ‘Software CD’ in ‘Name of Item’
 On Stock Item Allocation screen, specify ‘Due On’ date and ‘Quantity’ > Select ‘Finished Goods
Location’ in ‘Godown’

 On ‘Components Allocation’ screen, select ‘Job Work BOM’ > Select ‘Raw Materials Location’ in
Godown > Enter ‘Rate’ for each material

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Tally.ERP 9

 On ‘Stock items Allocation’ screen , specify ‘Rate’ > Accept the screen

The completed Job Work Out Order is shown below:

2. Transfer of Materials towards a Job order

To record the raw materials being sent out for Job Work:
 Go to Gateway of Tally > Inventory Vouchers > J: Material Out
 Select ‘XYZ Company’ in ‘Party A/c Name’
 In Party Details screen, select ‘Job001’ in ‘Order No(s)’
 Select ‘Job Work Out Location’ in ‘Destination Godown’
 Press ‘Enter’ to save

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Tally.ERP 9

Note: Here, you can also print the Material Transfer Out Challan (Delivery Challan)

3. Accounting Receipt of Finished Goods in Material In Voucher

 Go to Gateway of Tally > Inventory Vouchers > W: Material In
 Select ‘XYZ Company’ in ‘Party A/c Name’
 Enter required details in ‘Order Details’ screen

 Stock Items will be auto-filled under ‘Name of Item’

 Select ‘Job Work Out Location’ in ‘Consumption Godown’
 Select ‘Software CD’ in ‘Name of Item’
 On the ‘Stock Item Allocation’ screen, enter the required details

 Accept the screen

 Select ‘Cardboard Scrap’ > Enter the required details

 Accept the screen

© Tally Solutions Pvt. Ltd. All Rights Reserved - 2012 www.tallysolutions.com

Tally.ERP 9

The completed ‘Material-In’ Voucher screen is shown below:

4. Now, we need to account purchase of Job Work services in Purchase Voucher.

 Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

5. Lastly, use the Payment Voucher to account the payment made towards the Job Work charges.
 Go to Gateway of Tally > Accounting Vouchers > F5: Payment

So, we have just completed a Job Work Out transaction from a Principal Manufacturer to a Job Worker.

Job Work Out Reports

Job Work Out reports like Order Outstandings, Job Work Registers, Stock and Job Work Analysis are
available to help you track your Job Work process and improve business efficiency. To view or generate these
reports:
 Go to ‘Gateway of Tally > Display > Job Work Out Reports’.

Hence, the Job Work Out feature in Tally.ERP 9 can take care of all your Job Work Out requirements
in a simple and intuitive way.

Get more ‘Tally Tips’ on Tally.ERP 9 at www.tallysolutions.com/website/html/contactus/tally-tips.php

© Tally Solutions Pvt. Ltd. All Rights Reserved - 2012 www.tallysolutions.com