Purchase of a Job Work Service in TallyPrime: 2 Easy Examples

Here’s how to record the purchase of a job work service in TallyPrime:

1. Process Overview: Purchase of a Job Work Service in TallyPrime

1. You’ve placed a Job Work Out Order (JWOO) with a job worker, specifying the job details and expected finished product.
2. The job worker has completed the work and delivered the finished goods.
3. You’ll receive a bill from the job worker for their services (labor, processing, etc.).
4. You’ll use a “Purchase Invoice” voucher in TallyPrime to record the purchase of the job work service.

2. Steps to Record Purchase of Job Work Service:

1. Go to Vouchers:

Access the “Purchase Invoice” voucher:

• Gateway of Tally > Vouchers > Press F9 (Purchase) or Alt+G (Go To) > Create Voucher > Press F9 (Purchase).

2. Enter Voucher Details:

• Party’s A/c Name: Select the Job Worker (Supplier) account who performed the job work.
• Bill Date: Enter the date you received the bill from the job worker.
• Bill No.: Enter the bill number provided by the job worker (if available).

3. Particulars:

This section is crucial for recording the job work service.

Option 1 (Simple Method):

• Select the ledger account you created for “Job Work Charges” (preferably under Direct Expenses). This account will accumulate all job work service costs.
• Enter the total amount charged by the job worker for the service in the “Amount” field.

Option 2 (Detailed Method – Optional):

• If the job worker’s bill breaks down labor charges, material costs (if any they provided), or other service components:
  • Create separate ledger accounts for each cost category (e.g., Labor Charges, Material Costs (Job Work)).
  • Select the appropriate ledger account for each line item.
  • Enter the corresponding amount for each cost category.

4. Example:

You sent leather (Rs.500) to a tailor for stitching 10 bags. The tailor charges Rs.20 per bag for stitching and sends a bill for Rs.250 (service charges only).

1. Create a Purchase Invoice voucher.
2. Select the tailor’s account under “Party’s A/c Name”.
3. Enter the bill date and number (if available).
4. Particulars:
   • Option 1 (Simple Method):
     • Select the “Job Work Charges” account.
     • Enter “Rs.250” in the “Amount” field.
   • Option 2 (Detailed Method): (Assuming separate accounts)
     • Select “Labor Charges” account.
     • Enter “Rs.200” (10 bags * Rs.20/bag).

3. Additional Notes:

• You might have already recorded the transferred materials (leather) in a separate “Material Transfer Out” voucher earlier.
• Link the Purchase Invoice voucher to the relevant JWOO for better tracking (optional, might require enabling features).
• You can attach a scanned copy of the job worker’s bill to the voucher for reference (if supported by your TallyPrime configuration).
• Consider using cost allocation methods if the job work involved multiple finished products or complex costing structures.

4. Benefits of Recording Job Work Services Properly:

• Clear tracking of job work expenses for accurate cost analysis.
• Improved inventory management by reconciling job work costs with received finished goods.
• Streamlined accounting for job work processes within TallyPrime.

By following these steps and choosing the appropriate method for recording particulars, you can effectively document the purchase of job work services in TallyPrime, ensuring proper cost accounting and efficient job work management.