Goodwill Learning World: Single Bill of Material (B O M) Manufacturing Journal in Tally

Creating Bill of Materials for a Stock Item

Bill of Material feature is useful for manufacturing organizations and can be set up through F12: Configure.

To setup Bill of Materials

1. Go to Gateway of Tally > F12: Configure > select Accts/Inventory Info.

2. Set Allow Component List Details (Bill of Materials)? to Yes.

Go to Gateway of Tally > Inventory Info > Stock Items > Create.

Press F12: Configure (Stock Item Configuration) and set Allow Component List Details (Bill of Materials)? to Yes.

For a Stock Item you can create

Ø A Single BOM

Ø Multiple BOM

Ø Single/Multiple BOM with Type of Item.

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set-off inputs to manufacture finished goods.

Let us create a new Stock Item Car and specify BoM.

1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create

2. In Stock Item Creation screen

Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of

Measurement in Unit field

Set Component List: to create the component list required to manufacture the Finished goods enable this option to Yes.

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Component list details (Bill of Material),option will display in item master only on entering/ specifying the unit of measure in the Units field.

1. Press Enter to view Stock Item Multi Components (M BOM) screen

2. In Stock Item Multi Components (M BOM) screen

Under Name of BOM specify component list Name - Standard and press enter to view Stock Item

Components (BOM) screen

1. In Stock Item Components (BOM) screen:

Ø BOM Name: By default the BOM Name specified in Stock Item Multi Components (M BOM) screen will be defaulted and application will not allow to move the cursor to BOM Name field.

Ø Components of: In this field application displays the Name of the Stock Item for which the components

are defined.

Ø Unit of manufacture: Specify the appropriate number of finished product that will be manufactured by

using the components identified in the component list.

Ø Item: In this field identify the raw materials which are required to manufacture the finished goods

Ø Godown: If there are multiple Godowns or Locations, specify the storage location of the items from where

the items will be used for manufacture.

Note: The godown option will be displayed only when Maintain multiple Godown feature is enabled in F11:Features (Inventory Features)

Quantity: In this field mention the quantity of Raw Material required to manufacture the finished goods.

Observe to create 1 Car we require 5 different inputs. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.

Specify other required details in the stock item master and accept the screen.

6. Creating Manufacturing Journal for a Stock Item with Single Bill of Materials. All the manufacturing transactions can be accounted through a Stock Journal.

To record manufacture of finished goods in Stock Journal - Alter the Voucher Type by setting the option Use as a Manufacturing Journal to Yes. Or

Create a Manufacturing Journal under Stock Journal by setting the option Use as a Manufacturing Journal to Yes.

Note: Bill of Material should be created before accounting the manufacture of an item.

7. Go to Gateway of Tally > Inventory Vouchers

8. Select the button F7: Stk. Jrnl or press Alt + F7. If you have created a new voucher type Manufacturing Journal, a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

Name of Product: Select the product which needs to be manufactured from the List of Items.

BoM Name: In this field the BoM created for the stock item will be displayed automatically with one more option Not Applicable.

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components(Consumption) side based on the BOM defaulted.

Godown: Select the godown where you would like to place the produced goods.

Note: Godown option will be displayed only when maintain multiple Godowns feature is enabled in F11: Features (Inventory Features)

Quantity: In this field specify the quantity of finished goods manufactured.

Components (Consumption): In this section the components required to manufacture the finished goods will be displayed automatically based on the components defined in the BoM.

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured. The completed Manufacturing Journal is displayed as shown below.