I. Introduction
Job work in manufacturing involves sending materials to subcontractors for processing. It helps businesses reduce costs, manage workload, and focus on core production. Manual tracking leads to errors, delays, and compliance issues. TallyPrime automates job work with accurate challans, consumption tracking, costing, and real-time reports, ensuring smooth, compliant operations.
II. Understanding Job Work in TallyPrime
TallyPrime’s Job Work module helps manufacturers efficiently manage both inward and outward job work by tracking material movement, production status, challans, labour charges, and consumption. It automates documentation, ensures GST compliance, and provides real-time visibility into materials sent to job workers, finished goods received, and pending orders, improving accuracy and control.
III. Managing Outward Job Work in TallyPrime
1. Creating Outward Job Work Orders
To raise job work orders in TallyPrime, manufacturers create an order specifying the subcontractor, required processes, and materials. They define exact quantities, set due dates for completion, and attach the relevant Bill of Materials (BOM). This ensures clear instructions, accurate material
planning, and smooth tracking of outsourced production.
2. Sending Materials to Job Worker
Manufacturers can seamlessly manage outward job work in TallyPrime by issuing delivery challans for material movement, accurately tracking raw materials, components, and consumables sent to job workers. Additionally, dedicated godowns can be created for each job worker, ensuring clear visibility, controlled stock handling, and error-free monitoring of materials lying outside the factory.
3. Recording Job Work Completion
TallyPrime makes it easy to record the receipt of finished or semi-finished goods with accurate tracking of materials consumed through automatic BOM-based consumption. It also helps monitor shortages, returned materials, and rejected quantities, ensuring complete visibility of production output and material movement during the job work process.
IV. Managing Inward Job Work in TallyPrime
1. Inward Job Work Order Creation
When manufacturers receive raw materials from customers, TallyPrime allows them to record inward job work seamlessly. By creating an inward job work order, defining materials received, and linking them to production vouchers, businesses can track consumption, wastage, and finished goods accurately while ensuring transparency and compliance throughout the job work process.
2. Accounting for Production Done on Behalf of Customers
TallyPrime makes inward job work management seamless by allowing manufacturers to record production vouchers accurately, track raw material consumption and wastage in real time, and generate precise job work invoices for labour or processing charges. This ensures transparency, accurate costing, and faster billing for client-supplied materials.
V. Challans, GST & Statutory Compliance
1. Challans for Job Work
A delivery challan in job work must include item details, quantities, HSN codes, job worker information, and purpose of movement. TallyPrime helps maintain accurate challan numbers, track material movement to and from job workers, and record acknowledgments, ensuring complete visibility, error-free documentation, and smooth statutory compliance throughout the job work process.
2. GST Implications in Job Work
GST applies to labour or processing charges billed by the job worker, while the movement of raw materials or semi-finished goods to and from the job worker is generally tax-free when supported by a delivery challan. GST becomes applicable only when the finished goods are sold or supplied after job work.
3. Documentation & Audit Readiness
TallyPrime helps manufacturers maintain complete challan history, ensuring accurate tracking of all material movements. Auto-linked entries simplify compliance by connecting challans, orders, and receipts seamlessly. Additionally, system-generated GST reports provide ready-to-file data, reducing manual effort, minimizing errors, and ensuring smooth, compliant job work operations.
VI. Reports for Tracking Material & Costs in TallyPrime
1. Job Work Register
TallyPrime provides complete visibility into your job work status by clearly tracking every material movement. You can instantly view what materials have been sent to job workers, what has been received back, and what is still pending. This ensures accurate monitoring, reduces delays, and improves overall production control.
2. Cost Tracking Reports
TallyPrime helps manufacturers track the cost of materials consumed, allocate conversion costs like labour and overheads, and generate detailed profitability reports for each job work order. This ensures accurate costing, identifies variances, and helps businesses analyze margins, optimize production efficiency, and make informed pricing and subcontracting decisions.
3. Stock Movement Reports
TallyPrime provides a real-time view of materials lying with job workers, helping manufacturers track stock movement with accuracy. It enables clear WIP tracking to monitor production progress at every stage. Additionally, shortage and mismatch analysis ensures timely identification of discrepancies, preventing material loss and improving overall production efficiency.
VII. Conclusion
TallyPrime makes job work management simpler, faster, and fully compliant for manufacturing businesses. From tracking material movement to automating challans, costing, and GST documentation, it ensures complete transparency and control. With real-time reports and accurate consumption tracking, manufacturers can reduce errors, improve efficiency, and streamline their entire job work process with confidence.
