Tally 9 Help and Information

Job Costing

Job Costing is a form of specific order costing, which applies to a job undertaken according to customer requirements and specifications. It applies to industries which produce definite products against individual orders from customers.

Some industries where job costing plays an important role are:  construction, manufacturing, printing, automobile, etc.

Flexibility and simplicity being the underlying philosophy of Tally, the same is incorporated in the Job Costing feature, using which you can:

• Ascertain profitability i.e., Net Profit / Loss for a particular Job / Project
  
• Track the transfer of materials from one godown to another
  
• Easily track the consumption of materials at different locations
  
• Drill down till voucher level for any kind of alteration or reference
  
• Track material-wise receipts, consumption, transfers and closing stock at multiple locations dedicated for a job.
  
• Create job ‘cost centres’ and report on them
  
• Capture revenue and expenses as and when they are updated
  
• Compare and analyse various jobs
  
• Ascertain profitability i.e., Net Profit / Loss for a particular Job / Project
  
• Inventory movement: Opening, Inwards, Outwards , Transfer, Consumption etc
  
• Allows comparison of each element of cost, selling price and profit with other jobs
  
• Can ascertain the costs under each element when the job is in progress
  
• Do a Job Work Analysis where a service or a product is the output
  
• On the completion of a job, each element of cost, selling price and profit can be  compared against estimates and other jobs
  

The following scenario will showcase the flexibility and simplicity of this feature.

You are executing a contract for grill work to be done in a two storey building on a fixed rate basis for each floor separately. According to the terms of the contract, you will be paid the actual cost + 25% on a weekly basis. So you purchase the necessary raw material and unload the same at the ground floor of the building and then move the material to the first floor as the need arises. Now, at some point of time, you would like to know the profitability and cost of this project. You would also like to know the raw material stock at any given point of time.

The question arises – how do you go about getting all this information as and when you need it?

Using the Job Costing feature, all you need to do is define and enable certain parameters, create certain entities like godowns, vouchers, ledgers, etc. Once all this is done, your Job analysis report will give you a clear picture on various financial aspects of this particular project – all with a few clicks of the keyboard.

Other related reports that can be generated on the fly are:

Job Work Analysis Report – It also allows you to drill down from the Job Work Analysis report to voucher entry, to view a break up of Job/Project

Materials Consumption Summary Report – displays Opening Value, Inward Value, Consumption, Other Transfers and Closing Value

Comparative Job Work Analysis Report – displays the details of Multiple Jobs in a single report in different columns