For transfer of material from one location (godown) to another location (godown), we record the transactions through documents, company should have details for goods taken out for sale or for transfer or for processing to other godowns or for manufacturing.
Tally provides a system wherein the items along with quantity details can be allocated towards manufacturing/ assembling activities a finished product or by-product or likewise. This type of recording results in reduction of stock item automatically.
The process of converting raw material into finished product through inventory vouchers (stock journal) is possible only when bills of material (BOM) feature is activated.
To activate bill of materials F-12 configure (Bill of Materials) >> Yes
Recording the Manufacturing Entry Pass the manufacturing entry and see the result in stock summary.
Important Notes: -
The normal Stock Journal itself is sufficient in recording manufacture of goods. Manufacturing journal is another type of the Stock Journal where the Bill of Material comes up automatically hence, the manufacturing journal should be used where a BOM situation exists.