I. Introduction
TallyPrime is a powerful business management software that simplifies accounting, inventory, compliance, and reporting. For SMEs and growing manufacturers, its manufacturing module plays a crucial role in streamlining production, managing raw materials, and tracking costs efficiently. It ensures accurate stock management, boosts productivity, and supports seamless order-to-delivery operations.
II. Why Manufacturing Management in TallyPrime Matters
Manufacturers often struggle with manual tracking, leading to data entry errors and lack of real-time visibility. Inaccurate cost calculations result in pricing issues and profit leakage. Additionally, production delays occur due to poor material planning and uncoordinated workflows, ultimately affecting delivery timelines, customer satisfaction, and overall operational efficiency.
TallyPrime seamlessly integrates production, inventory, and accounting into a single platform, ensuring real-time data flow across all operations. It automates raw material consumption, updates stock levels instantly, and records financial entries simultaneously. This eliminates manual errors, enhances accuracy, and gives manufacturers complete control over their production and costing processes.
III. Creating the Bill of Materials (BOM)
A Bill of Materials (BOM) is a structured list of all raw materials, components, and quantities required to manufacture a finished product. It acts as the blueprint for production, ensuring accuracy in material planning, cost calculation, and inventory control—helping manufacturers streamline processes and minimize production errors.
Step-by-step process:
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Enable BOM feature in TallyPrime.
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Create a Stock Item for the finished product.
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Add raw materials with quantity and unit.
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Tips: Multiple BOMs for the same product, managing wastage, and version control.
IV. Recording Production Vouchers
The purpose of production vouchers in manufacturing is to record the transformation of raw materials into finished goods accurately. They track material consumption, monitor production quantities, account for wastage, and update inventory automatically. This ensures precise cost calculation, real-time stock management, and streamlined accounting for efficient manufacturing operations.
Step-by-step process:
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Enable “Use Material In and Out” in Features.
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Create a Production Journal.
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Select finished goods & auto-pull raw materials using BOM.
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Record actual production quantity.
V. Managing Material In and Material Out
Tracking material movement during production is crucial for accuracy, efficiency, and cost control. It ensures raw materials are used optimally, prevents wastage, enables real-time stock updates, and helps identify production bottlenecks. Accurate tracking supports precise costing, timely reporting, and informed decision-making, ultimately improving overall manufacturing productivity and profitability.
Material In refers to recording the receipt of raw materials or components that will be used in the production process. This ensures accurate tracking of material availability, cost allocation, and stock movement. By capturing Material In entries in TallyPrime, businesses maintain real-time inventory visibility and avoid production delays.
Material Out: This process in TallyPrime allows manufacturers to accurately record the consumption of raw materials during production, track any wastage or scrap generated, and manage transfers of materials between different departments or locations. It ensures precise inventory control, reduces errors, and provides clear insights into production efficiency and costs.
VI.Generating Final Stock & Production Reports
Key reports manufacturers should check in TallyPrime:
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Stock Summary
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Item Cost Analysis
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Job Work Reports (if applicable)
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Consumption vs Production Reports
How these reports help in decision-making, quality control, and cost optimization.
VII. Conclusion
TallyPrime manufacturing module offers an end-to-end solution for managing production efficiently, from planning raw materials with BOM to recording production vouchers and tracking Material In and Material Out. By automating inventory updates, cost calculations, and reporting, it eliminates manual errors, enhances visibility, and ensures timely, accurate decision-making. Manufacturers gain full control over their operations, streamline workflows, reduce wastage, and optimize profitability—making TallyPrime an essential tool for SMEs and growing businesses looking to achieve operational excellence.
