Tally.ERP 9 Release 3 with Job Working module Work In and Out

March 6, 2011 by admin
Filed under: Tally ERP 9

“Processes never break any system, it is the exception which does.”

Job Work In and Out feature is consciously designed to support business exception handling, each business house or each transaction of business house follow different processes based on the requirement.

A major concern for both, the businesses which outsources Job Work or receives Job Work, is to track material movement. What is the material that needs to be issued to the Job Worker? How much Quantity needs to be issued? How much material needs to be processed and sent back to the client? What is the cost of handling a Job and how much profit will a job worker get? Which Job

Worker is more cost effective? Will in-house production help to reduce costs or Job Work is a better option?

To answer all the above questions, Tally.ERP.9 now provides a new Job Work Module.

Tally.ERP 9 is introducing the following new features with Job Work:

a. Four new Voucher Types to handle Job Work Material Movement

Job Work out Order

This Voucher will allow a principal company to raise Job Orders on Job Worker. This voucher has a combined behaviour of Purchase Order and Sales Order as it will allow the user to raise an order for Material to be received post Job Process and, also with the option to define BoM at the transaction level, it will also provide the flexibility to capture information on material expected to be dispatched to the Job Worker.

Job Work in Order

This Voucher will allow the Job Worker to raise receipt of Job Order from Principal Company. This Voucher has a combined behaviour of Sales Order and Purchase Order as it will allow the user to raise an order for Material to be dispatched post Job Process and, also with the option to define BoM at the transaction level, it will also will give flexibility to capture information on material expected to be received from the Principal Company.

Before introducing the other two Voucher Types, let’s consider the following scenarios:

Scenario 1: The Business wants to deliver goods to a Job Worker, however the ownership of goods is still with the Business and therefore they want the stocks to be shown in their Stock reports (Godown) and affect the Stock Valuation, till the time it is actually consumed by the Job Worker, in addition to this, it should give them a record of such Stocks held by the Job Worker.

Scenario 2: Job Worker has received the goods from his Client, however the ownership of goods is not with the Job Worker and therefore he does not want these stocks to be shown in his Stock Summary nor it should affect his Stock Valuation. However Job Worker should be able to view a report which can provide the information related to each party’s stock lying with him.

There were three problems to be solved:

Stock Transfer without transfer of ownership of stock
Stock Valuation
Updated information about the actual stock availability

Material Out*

Allows the user to record Raw Material issued to Job Worker or record Finished Goods dispatched to Principal Company, without actually affecting the Stock Valuation, i.e. using the Godown transfers (with the help of External Godown feature introduced in Release 3.0). The new feature allows both the parties to use the same Voucher Type. In case the principal company has enabled Excise feature, Tally.ERP 9 will also allow printing of Annexure II (Job Work Challan (Material Delivery Document)).
Material In*

Allows the user to record Raw Material receipt from Principal Company or record receipt of finished goods from Job Worker, without actually affecting the Stock Valuation using the Godown transfers (with the help of External Godown feature introduced in Release 3.0). The new feature allows both the parties to use the same Voucher Type.

*We are building few more capabilities which you will get to see in subsequent builds, i.e. tracking Billable material and Raw Material consumption, which makes these two vouchers a completely unique set of vouchers having all capabilities.

b. Job Work Reports

Order Outstanding (In/Out): To keep a track of finished/semi- finished goods order outstanding information
Component Issues/ Receipt Outstanding: To keep a track of Components promised to be delivered/ issued in Job Order but not received/ dispatched
Issues with Variance: Components/ Finished/ Semi Finished Goods issued with variance from what was Ordered
Receipt with Variance: Components/ Finished/ Semi Finished Goods received with variance from what was Ordered
Material Movement registers (Annexure IV and Annexure V for Excise): Track of Components Issued/ Received and Finished received/ dispatched information is captured here, in case Excise for Manufacturer is enabled then this report will be displayed as Annexure IV and V.
Ageing Analysis for Stock at Job Worker Location: Principal can view the age of stock lying with Job Worker or and Job Worker can view Client’s stock lying with him
Stock with Job Worker or of Client: This report will display the information of summary of our components with Job Worker or Clients component with us