Manufacturing business produces items with the usage of machines, tools and labor. The core process of manufacturing includes raw materials that are transformed into finished goods on a large scale. Such finished goods might be used for manufacturing other, more complex products, such as household appliances or automobiles, or sold to wholesalers, who then sell them to retailers and the retailers sell to the end users, i.e. the consumers. Tally ERP 9 plays a key role in the business functioning for the manufacturing industry. It benefits the business immensely by the following functions and features:
The user can categorize stock items as per his needs. In manufacturing industry, the user will majorly have three broad classifications, i.e. raw materials, work in progress, finished goods. All items that are procured to manufacture a specific item are called Raw Material and are grouped under the group ‘Raw Materials’ whereas, a product whose shape has changed, but has not reached its complete stage is known as semi furnished item. These items will be grouped under the Group ‘Work in Progress” and any item that’s changed its shape/nature totally and reached the final form to sell are known as finished goods and is grouped under ‘finished goods’ group. The user can also create ledgers with the name Work in Progress, Raw Materials 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 addons / modules automatically displays the total of closing balances of all the ledgers grouped under the group Stock in Hand.
In several industries, particularly assembly units there are several components involved in the manufacture of finished items. Each time a product is manufactured, it becomes extremely difficult to issue stock items. Such situations can be handled in Tally software by using Bill of Material. In order to generate a Bill of Material, it’s vital to create a new item and specify the quantity of items to be manufactured. This specific tally module instantly selects all items that go into manufacturing of the finished product and automatically adjusts the stock. Any extra manufacturing cost such as power, wages, water charges, etc. can be added to the value of the manufactured product.
When one manufactures a product, there are manufacturing costs such as labor, electricity, accessories etc. which will have to be added to the product cost. In manufacturing industry, Tally is a best platform for the extra cost can be added to the product while entering stock journals or at the time of entering a manufacturing journal. The user can specify extra cost as a percentage of the component cost or even specify a notional value.
Stock Item Classified as Work in Progress, Raw Material, Finished Goods
The user can categorize stock items as per his needs. In manufacturing industry, the user will majorly have three broad classifications, i.e. raw materials, work in progress, finished goods. All items that are procured to manufacture a specific item are called Raw Material and are grouped under the group ‘Raw Materials’ whereas, a product whose shape has changed, but has not reached its complete stage is known as semi furnished item. These items will be grouped under the Group ‘Work in Progress” and any item that’s changed its shape/nature totally and reached the final form to sell are known as finished goods and is grouped under ‘finished goods’ group. The user can also create ledgers with the name Work in Progress, Raw Materials 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 addons / modules automatically displays the total of closing balances of all the ledgers grouped under the group Stock in Hand.
Bill of Material with Auto Adjustments of Stock
In several industries, particularly assembly units there are several components involved in the manufacture of finished items. Each time a product is manufactured, it becomes extremely difficult to issue stock items. Such situations can be handled in Tally software by using Bill of Material. In order to generate a Bill of Material, it’s vital to create a new item and specify the quantity of items to be manufactured. This specific tally module instantly selects all items that go into manufacturing of the finished product and automatically adjusts the stock. Any extra manufacturing cost such as power, wages, water charges, etc. can be added to the value of the manufactured product.
Extra cost of Manufacturing with notional value and percentage
When one manufactures a product, there are manufacturing costs such as labor, electricity, accessories etc. which will have to be added to the product cost. In manufacturing industry, Tally is a best platform for the extra cost can be added to the product while entering stock journals or at the time of entering a manufacturing journal. The user can specify extra cost as a percentage of the component cost or even specify a notional value.
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