Simple
Manufacturing and Materials Management
Manufacturing business produces items with
the usage of machines, tools and labor.
The core process of manufacturing involves
raw materials that are transformed into
finished goods on a large scale. Such finished
goods may be used for manufacturing other,
more complex products, such as household
appliances or automobiles, or sold to wholesalers,
who in turn sell them to retailers, who
then sell them to end users - the "consumers".
Businesses in Manufacturing can benefit
immensely from Tally.ERP 9 by the following
functions and features:
Stock Item Classification as Raw
material, Work in Progress, Finished goods:
Stock Item Classification
as Raw material, Work in Progress, Finished
goods:
The user can classify stock items as per
his requirements. In manufacturing concerns
the user will primarily have three broad
classifications (Stock Groups) i.e.
• Raw Materials
• Work in Progress
• Finished Goods
All items that that are
procured to manufacture a particular item
is called Raw Material & is grouped
under the group 'Raw Materials', where as,
a product whose shape has changed, but has
not reached its finished stage is called
Semi-finished item. These items will be
grouped under the Group 'Work-in-Progress'
and any item that is changed its shape /
nature completely and reached the final
form to sell are called finished Goods and
is grouped under 'Finished goods' group.
The user can also create ledgers with the
name Raw Materials, Work-in-Progress 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.ERP 9 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 many industries, especially assembly
units there are number of components involved
in the manufacture of finished items. It
is extremely difficult to issue stock items
each time a product is manufactured. Such
situations can be handled in Tally.ERP 9
by using Bill of Material. To generate a
Bill of Material, create a new item (finished
or intermediate product) and specify the
components that go in to manufacturing of
that finished / intermediate product. Now,
using manufacturing journal, specify the
quantity of items to be manufactured. Tally.ERP
9 immediately selects all items that go
in to manufacturing of the finished product
and automatically adjusts (decreases) the
stock. Any additional manufacturing cost
like wages, power, water charges etc, can
be added to the value of the manufactured
product.
Additional cost
of Manufacturing with notional value and
percentage:
When a product is manufactured, other than
the component cost, there are manufacturing
costs like labor, electricity, accessories
etc, which will have to be added to the
cost of the product. In Tally.ERP 9, the
additional cost can be added to the product
while entering stock Journals or at the
time of entering a manufacturing Journal
(use B.O.M). The user can specify additional
cost as a % of the component cost or even
specify a notional value. |
