Job work Order is a part of advanced inventory topic. Job Worker receives job / project from principal manufacturer to produce the finished goods. Job work order has details of raw materials which can be supplied from principal manufacture and quantity, rate etc.
ASSIGNMENT ON JOB WORK IN ORDER
- Tarak Industries company received a job order from Raaji Mobile Technologies to manufacture 2000no.s of Android mobiles. Order No. Job/R/001. To manufacture 2000no.s of Android Mobiles following raw materials will be supplied by Raaji Mobile Technologies.
s.no | Name of the item (raw material) | Quantity | Rate |
1 | Antenna | 2000no.s | 1000 |
2 | Lithium Battery | 2000no.s | 500 |
3 | Battery charger | 2000no.s | 200 |
4 | Switch / Key Tip | 2000no.s | 1,500 |
5 | Central Processing Unit (CPU) | 2000no.s | 4,000 |
6 | RAM | 2000no.s | 2,000 |
7 | Visual Display – (LCD) | 2000no.s | 2,500 |
8 | Antenna Switch | 2000no.s | 800 |
9 | Hager IC | 2000no.s | 650 |
10 | VCO (Voltage Control Oscillator) | 2000no.s | 1,200 |
11 | Audio IC | 2000no.s | 2,500 |
12 | UEM IC (Universal Energy Module) | 2000no.s | 2,600 |
13 | LED (Light Emitting Diode) | 2000no.s | 1,600 |
14 | RF Crystal | 2000no.s | 1,200 |
15 | Ear Speaker | 2000no.s | 1,600 |
16 | Microphone | 2000no.s | 1,400 |
17 | Vibrator Motor | 2000no.s | 600 |
18 | SIM Card Socket | 2000no.s | 1,600 |
19 | Memory Card | 2000no.s | 800 |
20 | External Antenna Socket | 2000no.s | 1,500 |
21 | RETU IC | 2000no.s | 3,000 |
22 | TAHVO IC | 2000no.s | 1,500 |
23 | OMAP Module | 2000no.s | 1,600 |
24 | Hands Free Connector | 2000no.s | 650 |
25 | Flash IC | 2000no.s | 1,250 |
26 | RAP4G IC | 2000no.s | 1,600 |
27 | USB Connector | 2000no.s | 1,680 |
28 | Joy Stick | 2000no.s | 2,600 |
29 | Software Connector Parts | 2000no.s | 1,250 |
30 | Connector TIP | 2000no.s | 1,600 |
31 | LTR | 2000no.s | 650 |
32 | UIM Card | 2000no.s | 700 |
2. Tarak Industries received stock from Raaji mobile technologies against ref no: job/R/001
3. Tarak Industries transferred the following stock to produce 2000no.s of android mobiles, The Job worker is using Transistor, Photo Diode, and Resistor which are own consumption are also transferred to the production floor.
Transistor (Opening balance 4000no.s., Rate:1000 ) – 2000no.s
Photo Diode (Opening balance 6000no.s, Rate:500 ) – 2000no.s
Resistor (Opening balance 3000no.s, Rate: 800) – 2000no.s
4. Tarak Industries manufactured 2000no.s Mobile phones.
5. Tarak Industries delivered the following finished goods to Raaji mobile technologies.
Mobiles – 2000no.s
6. Tarak Industries raised a sales invoice on Raaji mobile technologies for Rs. (Jobwork charge:50,00,000, Cost of material consumed: Rs.46,00,000)
7. Tarak Industries received amount from Raaji mobile technologies against ref no: job/R/001
SOLUTION
STEP: 1
- Press F11 > Company Features > Press F2 for Inventory Features
- Maintain Multiple Godowns — YES
- Enable Job Order Processing — YES
- Use Material IN and Out Vouchers — YES
- Use Cost Tracking for Stock Item — YES
- Accept_YES
STEP: 2
- Gateway of Tally — Inventory Info — GODOWNS — Create
- Name: RAW MATERIAL LOCATION — Accept_YES
- Name: JOB WORK IN LOCATION — Use For Third Party Stock with Us: YES — Accept_YES
- Name: Finished Goods location — Accept_YES
STEP: 3
- Gateway of Tally > Inventory Info > Stock Items > Create
- Now create the Raw Materials (as given in assignment) > Under: Mobile (RM) and Units: No.s
- Gateway of Tally > Inventory Info > Stock items > Create
Name: Mobile
Under: Electronics
Units: No.s - press F12 – Configuration :
Enable component list details (Bill of Materials): Yes - Set Components (BOM): YES
- Name of BOM: Making of Android Mobiles
- Unit of Manufacture: 1 no.s
- Press F12 – Configuration –
Define Type of Component BOM: YES - Now select the components (raw materials)
- select Godown: Job Work In location
- Type of Item: Component
- Quantity : 1 no.s
- Select the remaining items and enter the quantity each 1pcs
- press enter
- ENABLE COST TRACKING: YES
- ACCEPT_yes
STEP: 4
- Gateway of Tally > Inventory Info > Stock Items > Create
- Name: Transistor
Under: Electronics
Units: Pcs
Enable Cost tracking: YES
Quantity: 4000 no.s
Godown: Raw Material Location Quantity: 4000 no.s
Rate: 1,000 no.s
Accept_Yes - Name: Photo Diode
Under: Electronics
Units: Pcs
Enable Cost tracking: YES
Quantity: 6000 no.s
Godown: Raw Material Location Quantity: 6000 no.s
Rate: 500 no.s
Accept_Yes - Name: Resistor
Under: Electronics
Units: Pcs
Enable Cost tracking: YES
Quantity: 3000 no.s
Godown: Raw Material Location Quantity: 3000 no.s
Rate: 500 no.s
Accept_Yes
STEP: 5
- Gateway of Tally > Inventory Info > Voucher Types > Create
- Name: Material In (RM)
- Select Type of Voucher: Material IN
- Use for Job Work: YES
- Use for Job Work: YES
- Accept – YES
- Gateway of Tally > Inventory Info > Voucher Types > Create
- Name : Materiel Out (Transfer / FG)
- Select Voucher Type: Materiel Out
- use for job work: Yes
- Use for Job Work: YES
- Accept_YES
- Gateway of Tally > Inventory Info > Voucher Types > Alter > select Stock Journal voucher
- Name: Manufacturing Journal
- Select Type of Voucher: Stock Journal
- Use as a Manufacturing Journal: YES
- Accept_YES
STEP:6
- Gateway of Tally > Order Vouchers >
- ALT + W for Job Work In Order
- Party A/c Name: Raaji Mobile Technologies
Under: Sundry Creditors –
Maintain Balances Bill By Bill: YES —
Accept_Yes - Despatch Details:
Despatched Through: VAN
Destination: Rajam
Mode / Terms of Payment: Single - Process Instruction:
Duration of Process: 20 days
Nature of Processing: Making of Android Mobiles - Party Details:
Consignee: Raaji mobile technologies
Address: Dwaraka Nagar, Visakhapatnam
PRESS ENTER - Order No: JOB / R/ 001
- Name of Item: Mobile
- Track Components: YES
- Godown: Job Work In Location
- Quantity : 2,000no.s
- Fill Components Using: Making of Android Mobiles
- Now select the track “PENDING TO RECEIVE” for every item
- Select Godown “JOB WORK IN LOCATION”
- Rate: Specify the Rate for each item as given in the assignment
- After this process, COST TRACKING TO: job / r/ 001
- Press Enter
- Press F11 — F2 for inventory Features —
ENABLE ZERO VALUED TRANSACTIONS: YES - Press Enter_ACCEPT-YES (TOTAL VOUCHER)
STEP : 7
- Gateway of Tally > Inventory Vouchers > Ctrl + W for Material IN
- Select Material IN (RM) — Press Enter
- Reference no: ch/rm001
- Party’s A/c Name: Raaji mobile technologies
- Order No: Job / R/ 001
- Enter the Order Details and Party Document details and Party’s Details
- Source Godown: Not Applicable
- Now automatically items fill
- press enter — ACCEPT THE VOUCHER
STEP: 8
- Gateway of Tally > Inventory Vouchers > CTRL + J for Material Out Voucher
- Select Material Out (FG/ Transfer) voucher class > press enter
- Party’s A/c Name: Raaji Mobile Technologies (Press Enter)
Order No: End of List
Destination Godown: Job Work In Location - Name of Item: Transistor
Order No: Not Applicable
Godown: Raw material Location
Quantity: 2,000
Rate: 1,000
Cost Tracking To: Job/R/001 - Name of Item: Photo Diode
Order No: Not Applicable
Godown: Raw material Location
Quantity : 2,000
Rate: 500
Cost Tracking To: Job/R/001 - Name of Item: Resistor
Order No: Not Applicable
Godown: Raw material Location
Quantity : 2,000
Rate: 800
Cost Tracking To: Job/R/001 - ACCEPT_YES
STEP: 9
- Gateway of Tally > Inventory Vouchers >
- Press ALT + F7 for Stock Journal
- Select “Manufacturing Journal” Voucher class — Press Enter
- Name of Product: Mobile
- Name of BOM: Making of Android Mobiles
- Godown: Finished Goods Location
- Qty: 2,000no.s
- Cost Tracking no: Job/R/001
- automatically fills the total stock items (raw materials)
- Accept the total Voucher
STEP: 10
- Gateway of Tally > Inventory Vouchers >
- Press CTRL + J for Material Out Voucher
- Select Material Out (Transfer / FG)
- Reference No: Ch/RT/002
- Party’s A/c Name: Raaji Mobile Technologies
- Order No: Job / R / 001 (Press Enter)
- Destination Godown: Not Applicable
- Name of Item: Mobile (Automatically fills) (Press Enter)
- Order No: Job / R/ 001
- Godown: Finished Goods Location
- Quantity: 2,000no.s (automatically fills)
- Rate: 47,830 (automatically fills)
- Cost Tracking to: Job/R/001
- End of List
- ACCEPT THE VOUCHER
STEP:11
- Gateway of Tally > Accounting Vouchers >
- Press F8 for sales Voucher
- Press ALT + I For ACCOUNTS INVOICE
- Reference No: Sal/RMT/001
- Party’s A/c Name: Raaji Mobile Technologies
- Particulars: ALT + C –
Name: Job work Charge
Under: Direct Incomes
Allow cost allocation: (Stock Item): Yes
Accept_YES - Amount : 96,00,000
- STOCK ITEM COST ALLOCATIONS FOR: JOB WORK CHARGE
Cost Track to : Job / R/ 001
Item name: Mobile
Quantity : 2,000
Rate: 2,500
Amount : 50,000,00
Cost Track to : Job / R/ 001
Item name: Transistor
Quantity : 2,000
Rate: 1,000
Amount : 20,00,000
Cost Track to : Job / R/ 001
Item name: Photo Diode
Quantity : 2,000
Rate: 500
Amount : 10,00,000
Cost Track to : Job / R/ 001
Item name: Resistor
Quantity : 2,000
Rate: 800
Amount : 16,00,000
Now press Enter > Select New Ref > Sal/RMT/001 > 96,00,000 > Accept_Yes
STEP: 12
- Press F6 for Receipt Voucher
- Account : SBI
- Particulars : Raaji Mobile Technologies
- Agst Ref : Sal/Rmt/001
- Amount : 96,00,000
- Press Enter > Accept – Yes