The Job Work feature supports operations for the business that outsources a 'job' as well as businesses such as ancillary units that accept such orders. The functionality helps solve issues related to inventory tracking and profit assessment, for seamless operations. What raw materials need to be shipped to the job worker? How many finished goods are expected and when? How much raw material is lying in the job worker's factory? How to manage multiple job workers...
Item Cost Tracking refers to accumulation of costs and revenue for a particular quantity of a Stock Item across various transactions. The track can be created with any transaction and then referred subsequently in any transaction without needing the disciple of any master or configuration. Thus allowing to analyze the running cost and profitability of the item being tracked through manufacturing, sales, purchase and so on. The Item Cost and Profit Tracking feature helps you effectively track and ascertain the Procurement cost, Landing costs, Manufacturing or Production cost, Order cost/profit, Job cost/profit. This feature is also useful in determining Sale price of finished goods based on the costs incurred till date and the overall profitability.
In addition, Job Work in Tally.ERP 9 allows:
1. Multiple order tracking
2. MI (Material In) matched against Work Orders and not Item Masters
3. Value tracking including advance payments
4. Item tracking and Accounting legs of each transaction
5. Billing of own material utilised for Job Order undertaken
6. Tracking of billable item status (material utilised for a Job Order and their billing status)
7. Position of finished goods hence realiseable money value
Tally.ERP 9 Job Work feature allows Inventory tracking against Bill of Materials and allows transaction Bill of Materials instead of changing it at Item Masters level. It adjusts for external godown conditions when items sit in a job worker's factory, providing insights to the stocks held by the business at a particular time. Similarly, material received from the principal to the job worker can be classified in an Internal Job Work Godown which will not be available for trading therefore giving clear distinction of self-owned goods and the ones supplied by client. In a situation where advance payments have been made, the Work Order-wise reports provide a profit/loss dimension showing how much expense is booked. Inventory movement as well as profits can be ascertained on these transactions by allocating expenses such as travel of executives, shipping, insurance, salary and other overheads related to the Work Order.
• Real time insight into materials movement and tracking
• Accurate job costing
• Suitable for different complexities... small job worker to larger operations
• Supports accounting allocation (expenses/income)
• Improved productivity and profitability
• Auto fill of raw materials for execution
• Good for just in time inventory
• Enhanced logistics management and efficiencies