How to use (BOM) Bill of Materials in Tally

BOM stands for Bill of Materials. Bill of Materials in Tally is very important feature and this option is used to set how much raw material is consumed in case of production of any specific stock item and also calculate productive item cost in quick way with the help of BOM feature in Tally software.

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You know very well about the Tally software. At present time Tally is one only most popular accounting cum inventory software that handles the day to day all routine operations of any business unit very effectively.

Dear Friends, Today we talk about Bill of Materials which is another important feature of Tally.

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It is widely accepted by the different accounts for its user friendly nature. Tally provides different accounting and inventory features that allow any user to maintain his company accounts effectively.

Meaning of (BOM) Bill of Materials in Tally:

BOM stands for Bill of Materials. Bill of Materials in Tally is very important feature and this option is used to set how much raw material is consumed in case of production of any specific stock item and also calculate productive item cost in quick way with the help of BOM feature in Tally software.

This options specially used by the manufacturing organization to calculate cost of goods sold on any stock item. In other words to set item wise qty. for manufacturing or production we can use BOM facility in tally software.

Steps to use BOM in Tally:

Step 1. Create a new company or open an existing company in which you want to apply BOM.

Step 2. Now create all stock items which are used for manufacturing.

Step 3. Press F12 > Accounting / Inventory info > Allow Component list of detail (BOM) –> Yes

Note – You  can also activate this feature in product window of pressing F12. After applicable of this feature you just go finished goods item window & turn on BOM feature. After enable of this feature Set Production Formula there. Always remember this feature is only applicable for finished goods.

Step 4. Create a Voucher type which is used for productive item.

Name – Manufacturing Journal Voucher
Type of voucher – Stock Journal.
Use As a Manufacture Journal – Yes
Save the voucher.

Step 5. If you have available stock (Raw Material) then OK, otherwise pass a purchase entry and purchase all raw material item. Here don’t purchase finished goods item.

Step 6. Go to voucher & press Alt + F7 (Select Manufacturing Class).

Name Of Product – Select here Finished Goods item not raw material mean which product you will be production select here.

Quantity – Give the total quantity which you will be generated. After giving the quantity all raw materials is automatically comes there according to production formula. You also give expense here. After prepare of manufacturing voucher it is automatically show per pcs effective rate with total cost of item.

Must Read: How to Create Single Payment POS Invoice in Tally ERP

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3 Comments

  1. Please give long term building contractors and vendors entry taken contract from government like as school or rod construction.
    Please
    Please
    Please

  2. Sir please say about I want to a set a item name who’s are created with 5item and want to sold 1set how to setting it .I want to create a sellbill in 1set. How it deduct from 5stock item

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