View Cost Estimates Report in TallyPrime: 5 Options + Example

The Cost Estimates report in TallyPrime provides a breakdown of the estimated cost per unit of production for a finished good based on the Bill of Materials (BOM).

This report is beneficial for:

1. Understanding Production Costs:

Estimates the overall cost of manufacturing a finished good by considering the cost of raw materials included in the BOM.

2. Pricing Strategies:

Helps you set competitive prices for your products by analyzing the estimated production cost.

3. Inventory Management:

Provides insights into raw material consumption rates for better inventory planning and cost control.

1. Accessing the Cost Estimates Report in TallyPrime:

1. Gateway of Tally (Alt+F12):

Launch TallyPrime and navigate to the Gateway of Tally menu.

2. Display (Alt+F8):

Select “Display” from the Gateway menu or press Alt+F8.

3. Statements of Inventory:

Within the Display menu, choose “Statements of Inventory”.

4. Cost Estimation:

Here, you’ll find the “Cost Estimation” option.

This opens the screen for viewing cost estimates.

2. Report Options (F12) in TallyPrime:

Before viewing the report, you can customize it using the F12 key (Configure) to:

1. Select Stock Item:

Choose the specific finished good for which you want to view the cost estimate.

2. Show Quantities:

Enable this option to display the quantity of each raw material required per unit of the finished good.

3. Show Cost:

Enable this option to display the estimated cost of each raw material based on the unit cost defined in the stock item master.

4. Show Amount:

Enable this option to display the total estimated cost for each raw material (quantity multiplied by unit cost).

5. Show Using Alternate Units:

If you have defined alternate units of measurement for your stock items, you can choose to view the report in those units.

3. Example: Viewing Cost Estimate for Wooden Box

Let’s assume you have a BOM defined for a “Wooden Box” with the following components:

• 4 Nails (at Rs. 0.5 per nail)
• 1 Wooden Plank (at Rs. 20 per plank)

1. Access the Cost Estimates report as explained above.
2. Select the stock item “Wooden Box” from the list.
3. Enable options to “Show Quantities,” “Show Cost,” and “Show Amount” (optional: “Show Using Alternate Units” if applicable).

4. Report Output in TallyPrime:

The report will display something like this:

Name of Item	Quantity	Unit Cost	Amount
Nails	4	Rs. 0.5	Rs. 2.00
Wooden Plank	1	Rs. 20.00	Rs. 20.00

Total Estimated Cost per Wooden Box: Rs. 22.00 (Rs. 2.00 for nails + Rs. 20.00 for plank)

5. Benefits of Viewing Cost Estimates in TallyPrime:

1. Cost Transparency:

Provides a clear view of the estimated cost structure for your finished goods.

2. Informed Decision Making:

Helps with making informed decisions regarding pricing, production planning, and material sourcing.

3. Improved Efficiency:

Allows for identifying areas for cost optimization by analyzing raw material costs.

Additional Considerations:

• The cost estimates are based on the unit costs defined in the stock item master. Ensure these costs are accurate for a realistic estimation.
• The report doesn’t account for factors like labor costs, production overhead, or wastage. Consider these factors for a more comprehensive cost analysis.
• You can export the Cost Estimates report to various formats like CSV or Excel for further analysis or sharing.

By effectively utilizing the Cost Estimates report in TallyPrime, you can gain valuable insights into your production costs, optimize pricing strategies, and make informed decisions to improve your overall manufacturing efficiency.