Issue Variance Analysis Report (Job Work Out) in TallyPrime

TallyPrime doesn’t offer a pre-built report specifically named “Issue Variance Analysis Report (Job Work Out)”.

However, you can effectively analyze the variance between issued components and received finished goods by combining information from different reports.

Table of Contents

1. Steps to Analyze Issue Variance in TallyPrime:

1. Material Out Register (Job Work Out):

This report provides details of components issued to the job worker.

2. Material In Register (Job Work Out):

This report provides details of finished goods received from the job worker.

3. Job Work Out Orders Summary:

This report provides details of the expected finished goods as per the Job Work Out Order (JWOO).

2. Analyzing the Variance in TallyPrime:

1. Compare Issued Components with Finished Goods:

Analyze the quantity of components issued (from the Material Out Register) against the quantity of finished goods received (from the Material In Register).
Calculate the difference between the two to determine the quantity variance.

2. Consider the JWOO:

Refer to the Job Work Out Orders Summary to check the expected output based on the issued components.
Compare the actual finished goods received with the expected output to identify any discrepancies.

3. Calculate Variance Percentage:

Calculate the percentage variance between the expected finished goods and the actual finished goods received.

3. Example: 100 Meters of Fabric to a Tailor

You issued 100 meters of fabric to a tailor (Job Work Out Order) to produce 50 shirts.
You received 45 shirts from the tailor.

1. Variance Analysis in TallyPrime:

Issued quantity of fabric: 100 meters
Expected output: 50 shirts
Actual output: 45 shirts
Quantity variance: 5 shirts (shortage)
Percentage variance: (5/50) * 100 = 10% shortage

4. Additional Considerations:

1. Component-Wise Analysis:

If multiple components are involved, analyze the variance for each component separately.

2. Scrap and By-Products:

Consider the impact of scrap and by-products on the final output.

3. Job Work Charges:

Analyze the job work charges in relation to the quantity of finished goods received to assess cost efficiency.

4. Custom Reports:

If your TallyPrime version supports custom report creation, you might consider developing a more tailored report for variance analysis.

5. Limitations of Variance Analysis in TallyPrime:

TallyPrime doesn’t provide a direct comparison of issued components and received finished goods.
Manual calculations and analysis are required to determine the variance.

By combining the information from different reports and performing manual calculations, you can effectively analyze the issue variance in your job work processes.