Manufacturing Journal — BOM and Production

Bill of Materials and manufacturing journal for Sunrise Retail's accessory combo packs

Module 21 of 31 — Tally Prime. Convert raw accessories into combo kits using Bill of Materials and Manufacturing Journals. Duration: 40 min.

Learning Objectives

Enable the manufacturing module in Tally (F11)
Create a Bill of Materials (BOM) for a finished product
Process a Manufacturing Journal to convert components into finished goods
Apply to Sunrise Retail's Phone Starter Kit combo pack

Prerequisites: Stock Items — tally-14

Enable Manufacturing Journal

F11 → Inventory Features
→ Enable Manufacturing Journal: Yes
→ Ctrl+A

A new voucher type "Manufacturing Journal" becomes available under Alt+F7.

What Is a Bill of Materials (BOM)?

A BOM defines what components go into making one unit of a finished product. Sunrise Retail assembles "Phone Starter Kit" combo packs from existing accessories stock.

BOM — Phone Starter Kit:

Component	Quantity
USB-C Charger 45W	1 Nos
Silicone Phone Cover	1 Nos
Screen Guard Pack	1 Nos
Branded Box (packaging)	1 Nos

Output: 1 "Phone Starter Kit" combo pack.

Creating the BOM in the Stock Item Master

Gateway → Masters → Inventory Info → Stock Items → Create
Name: Phone Starter Kit Combo
Under: Accessories
Units: Nos

Set BOM (Bill of Materials): Yes
→ BOM Details:
   Component 1: USB-C Charger 45W    | Qty: 1
   Component 2: Silicone Phone Cover | Qty: 1
   Component 3: Screen Guard Pack    | Qty: 1
   Component 4: Branded Box          | Qty: 1
→ Ctrl+A

Processing the Manufacturing Journal

Sunrise Retail assembles 20 Phone Starter Kits in April 2025:

Alt+F7 (Manufacturing Journal / Stock Journal — Manufacturing Type)
Date: 25-Apr-2025
Reference: MFG-2025-001
Manufacturing Type: Manufacturing

Finished Goods:
  Item: Phone Starter Kit Combo
  Quantity: 20 Nos
  Rate: (auto-computed from BOM component cost)

Raw Materials (Components consumed):
  USB-C Charger 45W:     20 Nos  @ ₹1,300 = ₹26,000
  Silicone Phone Cover:  20 Nos  @   ₹200 = ₹4,000
  Screen Guard Pack:     20 Nos  @   ₹150 = ₹3,000
  Branded Box:           20 Nos  @    ₹50 = ₹1,000

Total Component Cost:     ₹34,000
Additional Cost — Labour: ₹2,000 (manual assembly)
Total Manufacturing Cost: ₹36,000 ÷ 20 = ₹1,800 per kit

→ Ctrl+A

Stock impact after entry:

Stock Item	Movement
USB-C Charger 45W	−20 Nos
Silicone Phone Cover	−20 Nos
Screen Guard Pack	−20 Nos
Branded Box	−20 Nos
Phone Starter Kit Combo	+20 Nos @ ₹1,800

Selling the Combo Kits

Combo kits can now be sold as a single line item:

F8 (Sales)
Party: Walk-in Customer
Stock Item: Phone Starter Kit Combo
Qty: 5 | Rate: ₹2,500 | Amount: ₹12,500
CGST @ 9%: ₹1,125 | SGST @ 9%: ₹1,125
Invoice Total: ₹14,750

The kit is taxed at 18% — the GST rate of the principal supply (accessories).

Margin per kit: Sale ₹2,500 − Cost ₹1,800 = ₹700 (28%)

Exercise: Sunrise Retail creates a "Laptop Bundle" (Laptop + Bag + Charger). BOM: 1 Dell Inspiron ₹42,000 + 1 Laptop Bag ₹1,500 + 1 USB-C Charger ₹1,300. Assemble 5 bundles. What is the cost per bundle and total stock consumed?

Show Solution

BOM cost per bundle: ₹42,000 + ₹1,500 + ₹1,300 = ₹44,800

Manufacturing Journal (Alt+F7):

Finished Goods:
  Laptop Bundle × 5  @  ₹44,800 = ₹2,24,000

Components consumed:
  Dell Inspiron 15:   5 Nos @ ₹42,000 = ₹2,10,000
  Laptop Bag:         5 Nos @  ₹1,500 =   ₹7,500
  USB-C Charger 45W: 5 Nos @  ₹1,300 =   ₹6,500
  Total:                              = ₹2,24,000

Stock changes: Dell −5, Bags −5, Chargers −5; Laptop Bundles +5.

Key Terms

Term	Meaning
BOM	Bill of Materials — lists components and quantities to produce one finished unit
Manufacturing Journal	Tally voucher that consumes component stock and creates finished goods stock
Finished Goods	End product after assembly
Raw Materials / Components	Input items consumed in the manufacturing process
Manufacturing Cost	Total component + labour + overhead cost per finished unit

Module Summary

Enable manufacturing: F11 → Inventory → Enable Manufacturing Journal: Yes
BOM is defined in the Stock Item master of the finished product
Manufacturing Journal (Alt+F7): deducts component stock → adds finished goods stock
Sunrise Retail: 20 Phone Starter Kits at ₹1,800 each (₹1,700 components + ₹100 labour)
Finished kits sold at ₹2,500 retail — margin per kit: ₹700

Quick Quiz

1. After assembling 20 Phone Starter Kits (1 charger each), the charger stock:

a) Increases by 20
b) Stays unchanged
c) Decreases by 20
d) Transfers to a different godown

Answer

c) Decreases by 20 — Manufacturing Journal consumes 20 chargers as raw material input, reducing charger stock by 20 units.

2. The BOM for "Phone Starter Kit" is defined in:

a) The Sales voucher
b) The Manufacturing Journal voucher
c) The Stock Item master for "Phone Starter Kit"
d) F11 Company Features