Top Manufacturing Features in Tally Prime: Complete Guide for Production, Inventory & Costing (2025)

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Introduction

Manufacturing businesses deal with complex processes—raw material planning, production cycles, job work, wastage, cost computation, batch/expiry tracking, and real-time inventory control. Tally Prime simplifies these challenges by offering a complete manufacturing management system within the same accounting platform.

Whether you are a small workshop, a mid-sized factory, or a large production unit, Tally Prime provides powerful tools to manage materials, track production, calculate costs, and ensure compliance without needing separate expensive ERP software.

This guide explains all major manufacturing features in Tally Prime and how they help streamline daily operations.

 1. Bill of Materials (BoM) – Accurate Material Planning

The Bill of Materials is one of the most important manufacturing features.
It allows manufacturers to predefine:

• Raw materials
• Components
• Semi-finished goods
• Consumption quantity
• Additional cost (freight, packing, overhead)

When a finished product is manufactured, Tally automatically consumes raw materials based on the BoM.

Benefits:

• Zero manual calculations
• Precise consumption tracking
• Better production planning
• Accurate costing

BoM is essential for industries like garment manufacturing, electronics, food production, steel fabrication, chemicals, and furniture.

 2. Manufacturing Journal – Convert Raw Materials into Finished Goods

Tally Prime provides a dedicated Manufacturing Journal to record production.

It allows you to:

• Enter quantity produced
• Auto-deduct raw materials
• Add direct & indirect expenses
• Record wastage and scrap
• Generate finished goods stock

This creates a transparent record of every production batch, which helps in:

• Material accountability
• Quality tracking
• Actual vs. standard consumption comparison

3. Multiple BoMs for a Single Product (Variants)

Some products require multiple manufacturing methods.

Example:
A shirt can have:

• Full sleeve BoM
• Half sleeve BoM
• Premium fabric BoM

Tally allows multiple BoMs for the same item, making it ideal for manufacturers producing customized or variant-based products.

4. Job Work Management (Inward & Outward)

Many manufacturers outsource parts of the production process.

Tally supports:

Job Work In (Material sent to Job Worker)

Track:

• Material issued
• Material received back
• Wastage
• Job worker charges

Job Work Out (Material received from Customer for processing)

Track:

• Raw material received
• Processing done
• Finished goods delivered
• Value-added charges

This helps maintain complete control over outsourced operations and avoids material loss.

 5. Batch-wise & Lot-wise Tracking

For industries like pharmaceuticals, food, chemicals, and FMCG, batches are extremely important.

Tally Prime provides:

• Batch numbers
• Expiry dates
• Manufacturing dates
• Batch consumption
• Batch rate differences

This ensures batch-level accuracy in stock, pricing, and compliance.

6. Manufacturing Costing – Real-time Cost of Production

Tally automatically calculates actual manufacturing cost by including:

• Raw material cost
• Direct labor
• Power & fuel
• Packing cost
• Overheads
• Wastage value

This helps business owners calculate:

• Cost per unit
• Profit margin
• Overproduction losses
• Cost variance

Accurate costing improves pricing decisions and profitability.

7. Bill of Material Explosion (BoM Explosion View)

Tally Prime can expand a nested BoM to show:

• Components
• Sub-components
• Consumables
• Semi-finished goods

This is helpful for industries like:

• Machinery
• Electronics
• Auto parts

Where multiple layers of components are required.

8. Stock Reorder Level & Material Requirement Planning

Manufacturers often struggle with:

• Raw material shortages
• Overstocking
• Production stoppages

Tally allows:

• Minimum/maximum stock levels
• Reorder reminders
• Consumption forecasting

This ensures material availability and reduces carrying cost.

 9. GST for Manufacturers (Excise, BOM-based GST, Jobwork GST)

Tally supports all manufacturing-related GST scenarios:

• GST on job work charges
• RCM on job work
• Consumable material GST
• BOM-based HSN classification
• Production scrap sales with GST

The GST flows automatically into returns like GSTR-1 and GSTR-3B.

10. Quality Control & Wastage Tracking

Tally allows recording:

• Normal wastage
• Abnormal wastage
• Scrap quantity and value

This helps in:

• Loss control
• Quality monitoring
• Accurate costing

 11. Real-Time Production Reports & Dashboards

Tally Prime comes with several important reports for manufacturers:

• Stock Summary
• BoM Summary
• Production Cost Reports
• Consumption Reports
• Ageing Analysis
• Job Work Registers
• Profitability Reports
• Scenario-based analysis

These give manufacturers real-time insights into:

• Available stock
• Cost trends
• Production performance

How Manufacturers Benefit from Tally Prime

✔ Accurate costing and pricing

✔ Reduced material wastage

✔ Better control over production

✔ Smooth job work tracking

✔ Real-time stock visibility

✔ GST compliance made easy

✔ Fast decision-making with dashboards

✔ Seamless integration of accounting + inventory + production

FAQs – Manufacturing Features in Tally Prime

1. Is Tally Prime suitable for small manufacturing units?

Yes. Even micro and small factories can manage production easily without needing expensive ERP systems.

2. Does Tally Prime support multiple levels of Bill of Materials?

Yes. BoM can include semi-finished goods, nested items, and multiple variants.

3. Can Tally Prime track job work done outside the factory?

Yes, both job work in and job work out processes are fully supported.

4. Can we calculate actual manufacturing cost in Tally?

Yes. Tally auto-computes cost based on raw materials, labor, overheads, and wastage.

5. Is batch-wise tracking available for manufacturing?

Absolutely. Industries with expiry dates and batches rely heavily on this feature.

6. Can I generate production reports in Tally Prime?

Yes. Reports like BoM summary, cost analysis, consumption, and stock insights are available in real time.

Conclusion

Tally Prime offers a complete suite of manufacturing features that help factories and production units operate efficiently. From raw material planning to finished goods costing, from job work management to real-time dashboards, Tally provides a powerful and affordable manufacturing management system.

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