Create a Principal Manufacturer Ledger in TallyPrime: 2 Methods

In TallyPrime, a Principal Manufacturer ledger serves a similar purpose to a Job Worker ledger, but from your perspective as the entity sending materials for processing and receiving finished goods from an external manufacturer.

Here’s a detailed guide on creating a Principal Manufacturer ledger:

1. Accessing Gateway of Tally:

Launch TallyPrime and navigate to the Gateway of Tally menu (Alt+F12).

2. Creating Ledger:

Similar to creating a Job Worker ledger, there are two ways to access the ledger creation screen:

Method 1 (Recommended):

• Select “Create” from the Gateway menu.
• Choose “Ledger” from the submenu.

Method 2 (Alternative):

• Press Alt+G (Go To) and choose “Create Master” from the submenu.
• Select “Ledger” from the following options.

3. Entering Details:

In the “Ledger Creation” screen, enter the following information:

1. Name:

Enter the name of the Principal Manufacturer you’re sending materials to (e.g., “XYZ Electronics”).

2. Under:

Select the appropriate group for Principal Manufacturer ledgers.

Common options include “Sundry Debtors” or a dedicated “Principal Manufacturers” group if created.

3. Opening Balance (Optional):

If there are any outstanding dues owed by the Principal Manufacturer, enter the opening balance here (less likely than with Job Workers).

4. Configuring Ledger (Optional – F12):

Similar to Job Worker ledgers, press F12 (Configure) to access ledger configuration options. Consider these settings:

1. Maintain Balances bill-by-bill:

This allows you to track balances for each job work order associated with this Principal Manufacturer.

This further breaks down balances within each bill by individual transactions (sales invoices, etc.). – While less common for Principal Manufacturers, you might enable this for complex arrangements.

5. Saving the Ledger:

Press Ctrl+S (Save) to create the Principal Manufacturer ledger in TallyPrime.

6. Example: Create a Principal Manufacturer Ledger in TallyPrime

You send raw materials to “XYZ Electronics” for assembly into finished products.

Here’s how to create their Principal Manufacturer ledger:

1. Go to Gateway of Tally > Create > Ledger (or use the alternative method).
2. Enter “XYZ Electronics” as the name.
3. Choose “Sundry Debtors” (or a dedicated Principal Manufacturers group) under “Under.”
4. Leave the opening balance blank if there are no outstanding dues from them.
5. Press Ctrl+S to save the Principal Manufacturer ledger.

7. Additional Considerations:

• You can create separate Principal Manufacturer ledgers for different external manufacturers you collaborate with.
• Enabling bill-by-bill options is useful if you need to track balances for each specific job work order sent to a particular Principal Manufacturer.

8. Next Steps:

With the Principal Manufacturer ledger created, you can proceed with creating:

1. Delivery Orders:

To record materials sent to the Principal Manufacturer for processing.

2. Purchase Invoices:

To record finished goods received back from the Principal Manufacturer, potentially with associated processing charges.

These processes are explained in detail in separate responses.

By establishing Principal Manufacturer ledgers, you gain control over transactions with your external manufacturing partners.

This allows for accurate record-keeping, efficient cost analysis, and improved management of your outsourced production activities.