Bill of Materials (BOM) Aur Manufacturing

Learning Objectives

Day 5 complete karne ke baad student:

• Additional Cost ka concept aur purchase inventory costing par uska impact samjhega.
• Freight, carriage, loading, aur insurance jese additional expenses ko raw material cost ke sath relate karega.
• Bill of Materials (BOM) ka business purpose aur component-wise structure samjhega.
• Simple aur multi-component BOM create karega.
• Manufacturing entries (Stock Journal) mein BOM-based consumption aur production record karega.
• Raw material consumption aur finished goods production ke baad inventory impact verify karega.
• Additional Cost aur BOM ko ek complete manufacturing scenario mein combine karega.

Core Concepts: Additional Cost (Landed Cost) & BOM

Advanced inventory aur manufacturing operations mein goods ki proper costing aur production planning ke liye do key tools use hote hain:

• Additional Cost Details: Purchase invoice ke basic base price ke alawa goods ko warehouse tak lane mein incur hone wale expenses (Freight, Loading, Insurance, etc.) ko effective inventory cost mein factor karna.
• Bill of Materials (BOM): Ek finished product ko manufacture karne ke liye required raw materials aur components ki predefined quantity-wise list (Recipe).

Comparison Matrix

Golden Manufacturing Rule:
Landed Cost = Purchase Basic Price + Direct Acquisition Expenses.
BOM = Raw Material Components → Production Process → Finished Goods.

Company Setup & Feature Activation

Company Profile

• Company: ABC Manufacturing | State: Maharashtra | FY: 2026–27

Enabling Inventory & Manufacturing Features in TallyPrime:

1. Press F11 (Features) on the Gateway of Tally.
2. Set Maintain Inventory to Yes.
3. Set Integrate Accounts with Inventory to Yes.
4. Ensure Use Manufacturing Journal / Materials Out features are enabled.
5. Poori screen accept karne ke liye press karein Ctrl + A (Save) settings.

Masters Configuration

1. Units of Measurement

• Nos (Numbers), Kg (Kilograms), Ltr (Litres)

2. Additional Cost Ledgers (Under Direct Expenses):

• Freight Charges, Loading Charges, Insurance Charges

3. Stock Items Setup (Raw Materials & Finished Goods):

• Raw Materials: Wood (Kg), Steel Legs (Nos), Screws (Nos), Polish (Ltr), Packing Material (Nos).
• Finished Product: Office Chair (Nos) — BOM attached with component structure.

Practical Walkthroughs: Additional Cost & BOM Manufacturing

Part A: Additional Cost (Landed Cost Calculation)

Purchase Scenario: Purchased 1,000 Kg Steel Sheet @ ₹100/Kg = ₹1,00,000 from Steel Suppliers.

• Additional Expenses: Freight = ₹5,000 | Loading = ₹2,000 | Insurance = ₹1,000 (Total = ₹8,000).
• Total Landed Cost: ₹1,00,000 + ₹8,000 = ₹1,08,000.
• Effective Landed Cost Per Unit: ₹1,08,000 ÷ 1,000 Kg = ₹108 / Kg.
• TallyPrime Steps: Pass Purchase Voucher (F9) → Select item & rate → Allocate additional expense ledgers to distribute purchase cost across inventory valuation.

Part B: Bill of Materials (BOM) Setup for Office Chair

BOM Structure for 1 Office Chair:

• Wood: 3 Kg
• Steel Legs: 5 Nos
• Screws: 15 Nos
• Polish: 0.25 Ltr
• Packing Material: 1 No

Part C: Manufacturing Entry (Production of 100 Office Chairs)

1. Go to Vouchers → Press Alt + F7 (Stock Journal / Manufacturing Journal).
2. Select Finished Product: Office Chair → Quantity to produce: 100 Nos.
3. Select BOM name. TallyPrime automatically computes raw material consumption:
   • Wood: 300 Kg (3 × 100)
   • Steel Legs: 500 Nos (5 × 100)
   Screws: 1,500 Nos (15 × 100)
   • Polish: 25 Ltr (0.25 × 100)
   • Packing Material: 100 Nos (1 × 100)
4. Save voucher → Raw material stocks decrease automatically while finished goods inventory increases by 100 Nos.

Complete Practice Sets

Practice Set (Furniture Manufacturing Lab):

Production Task:

• Produce 100 Office Chairs using the defined BOM.
• Verify closing balances of raw materials and finished goods in Stock Summary.

Verification Reports, Common Mistakes & FAQs

Verification Reports in TallyPrime:

• Stock Summary: Verify inward purchase values, landed cost valuations, raw material consumption, and finished goods closing stock.
• Stock Journal Registers: Track production batches and material issue/receipt logs.

Common Mistakes:

• Forgetting to add freight and direct acquisition expenses to purchase invoices, leading to understated inventory valuation.
• Unit mismatches between BOM components and raw material masters (e.g., Kg vs Grams).
• Failing to link the correct BOM name during Stock Journal manufacturing entry.

Frequently Asked Questions:

Q: Landed Cost kya hoti hai?
A: Purchase price mein freight, loading aur insurance jese direct expenses add karne ke baad nikli hui effective per-unit cost.
• Q: BOM ka real business use kya hai?
  A: Finished goods produce karne ke liye required raw materials ki exact recipe maintain karna aur automatic consumption track karna.
• Q: Manufacturing entry pass karne par stock par kya impact padta hai?
  A: Raw materials ki quantity minus ho jaati hai aur finished product ki quantity plus ho jaati hai.

Quick Revision & Completion Checklist

Additional Cost & BOM Golden Workflow:
Purchase Entry (F9) + Additional Expenses → Effective Landed Cost → Define BOM Structure → Stock Journal Manufacturing Entry (Alt+F7) → Reconcile Consumption & Production Closing Stock

Completion Checklist:

• Additional expense ledgers created under Direct Expenses
• Purchase landed cost calculation and allocation mastered
• Bill of Materials (BOM) created for finished items
• Manufacturing stock journals executed for material consumption
• Stock Summary and raw material balances verified