How to Create a Bill of Materials in Tally Prime

Create BOM (Bill Of Material)

A Bill of Materials (BOM) is a comprehensive list of all the materials, components, and sub-assemblies needed to manufacture or produce a particular product. BOM is an essential part of production planning and inventory management, and it helps businesses estimate costs, manage inventory, and streamline the production process. Tally Prime is a popular accounting software that can be used to create BOMs for businesses of all sizes. In this article, we will discuss how to create a BOM in Tally Prime.

Step 1: Create a Group for BOM Items

The first step in creating a BOM in Tally Prime is to create a group for all the items that will be used in the BOM. To create a group, go to the ‘Gateway of Tally’ and click on ‘Accounts Info’ and then ‘Groups’. Then, click on ‘Create’ and enter the name of the group, such as ‘BOM Items’. Select the ‘Primary’ group and save the group.

Step 2: Create a BOM Ledger

After creating a group, the next step is to create a BOM ledger. To create a BOM ledger, go to ‘Accounts Info’ and click on ‘Ledgers’. Then, click on ‘Create’ and enter the name of the ledger, such as ‘Product A BOM’. In the ‘Under’ field, select the ‘BOM Items’ group that was created in Step 1. Then, select ‘Inventory values are affected’ and save the ledger.

Step 3: Add Items to the BOM Ledger

Once the BOM ledger is created, the next step is to add all the items that will be used in the BOM. To add items, go to the ‘Product A BOM’ ledger and click on ‘Inventory Allocations’. Then, click on ‘Create’ and select the item that will be used in the BOM, such as ‘Component X’. Enter the quantity of the item that will be used in the BOM and save the allocation. Repeat this process for all the items that will be used in the BOM.

Step 4: Create a Manufacturing Journal

The final step in creating a BOM in Tally Prime is to create a manufacturing journal. To create a manufacturing journal, go to ‘Inventory Vouchers’ and click on ‘F7: Manufacturing Journal’. Then, enter the details of the journal, such as the date, voucher number, and product name. In the ‘Name of Item’ field, select the BOM ledger that was created in Step 2. Then, enter the quantity of the product that will be manufactured and save the journal.

In conclusion, creating a BOM in Tally Prime is a simple process that can help businesses manage inventory and streamline production processes. By following the steps outlined in this article, businesses can create comprehensive BOMs for all their products and gain valuable insights into their manufacturing processes.