TallyPrime for Manufacturing – BOM & Job Work Setup (Full Guide)

Published on: 22-11-2025 Call CA Tally HelpDesk +91 9205471661, 8368262875

Introduction

Manufacturing businesses rely heavily on accurate material planning, cost control, stock tracking, and production recording. TallyPrime makes this easy with powerful features like Bill of Materials (BOM) and Job Work management.
Whether you run a factory, workshop, assembly unit, or fabrication business, TallyPrime helps track raw materials, finished goods, wastage, consumption, and outsourcing—all in one place.

This guide explains how manufacturing businesses can use TallyPrime to set up BOM and Job Work step by step.

Part 1 – Bill of Materials (BOM) Setup in TallyPrime

BOM is used when one finished product is manufactured from multiple raw materials.
Example: To manufacture 1 table → 4 legs + 1 top + screws.

1. Enable BOM in TallyPrime

Go to:
F11 → Inventory Features → Enable “Bill of Materials” = Yes

2. Create Raw Material Stock Items

Create all individual components:

• Wood Plank
• Table Legs
• Screws
• Polish
• Glue

Steps:
Gateway → Inventory Info → Stock Items → Create
Enter GST, units, category, etc.

3. Create Finished Goods Stock Item

Create product like “Wooden Table”.

Enable BOM here:

Under “Manufacturing Details”:
Select Use BOM = Yes
Create a new BOM name (e.g., “Standard Table BOM”)

4. Define BOM Components

Inside the BOM screen, enter:

You can add:

• Wastage %
• By-products
• Co-products

This completes your BOM setup.

5. Record Manufacturing Using Stock Journal

Manufacturing is recorded through Stock Journal.

Steps:
Voucher → Alt + F7 (Stock Journal)

Two sides will appear:

Left Side → Raw Material Consumption

Select raw materials (auto-fills from BOM).

Right Side → Finished Goods Produced

Select final product (e.g., Wooden Table → Qty 1)

Save the voucher.

Tally automatically:

• Reduces raw material stock
• Increases finished goods stock
• Records costing
• Updates inventory reports

Part 2 – Job Work Setup in TallyPrime

Job Work is used when manufacturing is done through third-party job workers or when you receive raw materials to manufacture for your clients.

TallyPrime supports both:

1. Job Work IN (You manufacture for customer)
2. Job Work OUT (You send raw materials to worker)

A. Job Work IN (You are the manufacturer)

1. Enable Job Work IN Feature

Go to:
F11 → Inventory → Enable Job Work In = Yes

2. Create Customer as Job Work Party

Accounts Info → Ledgers → Create
Under: Sundry Debtors
Enable Job Work options.

3. Create Job Work IN Orders

Go to:
Voucher → Alt + F5 (Job Work In Order)

Enter:

• Party Name
• Finished goods to produce
• Raw material required (from BOM)

4. Receive Raw Material from Customer

Voucher → Material In Voucher

Enter:

• Raw material components
• Quantity received
• Job work order reference

This increases stock but keeps it under “Job Work In” classification.

5. Manufacturing Under Job Work

Use Stock Journal to convert raw material to finished goods.

6. Return Finished Goods to Customer

Voucher → Material Out Voucher

Enter:

• Finished goods
• Quantity
• Job work charges (in separate ledger if applicable)

B. Job Work OUT (You send materials to job worker)

1. Enable Job Work OUT Feature

F11 → Inventory → Enable Job Work Out = Yes

2. Create Job Worker Ledger

Under Sundry Creditors
Enable Job Work related settings.

3. Create Job Work OUT Order

Voucher → Alt + F6 (Job Work Out Order)
Enter details of:

• Job worker
• Finished goods required
• BOM components

4. Send Raw Materials to Job Worker

Voucher → Material Out Voucher

This reduces your stock and marks material issued for job work.

5. Receive Finished Goods

Voucher → Material In Voucher

Enter:

• Finished product
• Quantity
• Consumption details (auto from BOM)

6. Record Job Work Charges

Voucher → Purchase or Journal
Ledger: Job Work Charges
Enter billing amount given by worker.

Reports for Manufacturing in TallyPrime

TallyPrime provides the following reports:

• Manufacturing Journal
• Job Work In Summary
• Job Work Out Summary
• Raw Material Consumption Report
• BOM Costing
• Stock Movement Analysis
• Finished Goods Register
• Pending Job Work Orders
• Cost Estimates

These reports make it easy to track production quantities, costing, and material flow.

Benefits of Using BOM & Job Work in TallyPrime

1. Accurate Raw Material Control

Avoid shortages and track material usage properly.

2. Auto Cost Calculation

Tally auto calculates production cost based on BOM.

3. Smooth Job Work Tracking

Track material sent for job work and quantity received.

4. Faster Production Posting

Stock Journal + BOM saves time.

5. Strong GST Compliance

Job work entries auto flow into GST reports.

6. Zero Manual Errors

Standard BOM ensures uniform production.

Conclusion

TallyPrime is a powerful tool for manufacturing businesses.
With features like BOM, Stock Journal, Job Work IN/OUT, and inventory controls, manufacturers can manage raw materials, finished goods, production costing, and outsourcing easily.
Whether you run a small workshop or a large factory, TallyPrime ensures fast, accurate, and efficient production accounting.

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