# Tally Prime Manufacturing Journal Checklist > Source: https://netray.co/tools/tally-prime-manufacturing-journal-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A tick-box checklist for setting up bills of material and posting manufacturing journals in Tally Prime without stock or costing surprises. ## Category regional ## Erp Tally Prime ## Industry Discrete Manufacturing ## Region India ## Audience - Accountant - Factory accountant - Tally consultant - Plant finance ## Tool **Kind:** checklist **Scoring Note:** Aim to clear every critical item before the first live production posting. Anything left unticked is a likely source of negative stock or wrong product cost at month end. **Groups:** #### Company and inventory features **Items:** **Text:** Inventory is enabled and the company is set up for manufacturing in F11 features **Critical:** true **Text:** Bill of Materials is enabled in stock item features **Critical:** true Multiple godowns (locations) enabled if raw material, WIP and finished goods are stored apart Batch tracking enabled where expiry or lot control is needed Additional cost details such as labour or power enabled if you want them in product cost **Text:** Stock valuation method agreed with the auditor (weighted average, FIFO or similar) **Critical:** true #### Stock items and units **Items:** **Text:** Every raw material, finished good and by-product created as a stock item with a unit **Critical:** true Alternate units defined where purchase and consumption units differ HSN code and GST rate filled on each item **Text:** Opening quantities and values entered or imported for raw materials and finished goods **Critical:** true Duplicate or look-alike item names merged before posting begins Item groups and categories set so reports roll up the way management reads them #### Bill of Materials **Items:** **Text:** BOM created on each finished good with component quantities per unit of output **Critical:** true Consumption godown named for each component line By-products and co-products defined as separate lines with expected quantities Scrap and wastage defined so yield is not hidden inside consumption Multiple BOMs created only where the product has a real variant, with a clear naming rule **Text:** Standard BOM reviewed by production in-charge, not only by accounts **Critical:** true #### Voucher type and posting **Items:** **Text:** A manufacturing journal voucher type created or configured (stock journal used as manufacturing journal) **Critical:** true Voucher numbering set to automatic with a separate series for production **Text:** Destination item and quantity entered, BOM components pulled in automatically **Critical:** true Actual consumption edited where it differs from BOM, with a reason in narration Additional cost lines posted for labour or job work where required Backdating and post-dating checks done so entries fall in the right period #### Controls and month end **Items:** **Text:** Negative stock warning is on, and any override is reviewed weekly **Critical:** true **Text:** Stock summary reconciled to physical count for raw material and finished goods **Critical:** true Closing stock value checked against the valuation method chosen Job work challans and inter-godown transfers separated from production vouchers Variance between BOM and actual consumption reviewed monthly **Text:** Data backup taken before bulk edits or period close **Critical:** true ## Content **Intro:** Manufacturing in Tally Prime lives or dies on three things: a correct bill of materials, a manufacturing journal posted on time, and a stock valuation method everyone agrees on. This checklist walks through setup and posting in the order a factory accountant actually does it. **Sections:** #### How to use this checklist **Body:** Work through the groups top to bottom the first time, then use it as a monthly review. Critical items are the ones that cause negative stock, wrong cost or audit questions if skipped. Tick items as you complete them, then export the list to PDF or Excel and attach it to your month end file so the next person can see what was verified and when. #### How manufacturing works in Tally Prime **Body:** Tally Prime records production through a stock journal voucher used as a manufacturing journal. You pick the finished good, enter the quantity, and the components from the bill of materials appear as consumption. Stock moves from the consumption godown to the destination godown, and the cost of components flows into the cost of the finished good. By-products and scrap are separate lines on the BOM. **Bullets:** - BOM is defined on the finished good stock item - Consumption and production are one voucher, so they cannot drift apart - Additional cost lines let you load labour or power into product cost - Valuation follows the method set on the stock item or company #### Reading the result **Body:** If you tick all critical items, your manufacturing postings should produce a stock summary that matches the shop floor and a product cost you can defend. If several critical items are open, expect negative stock on raw materials, finished goods valued at zero or at the wrong rate, and manual journals at year end to fix the mismatch. Treat each unticked critical item as a task with an owner and a date. #### Common mistakes **Body:** The most frequent problem is posting purchases after the production entry, which drives raw material negative and distorts the rate. Next is editing consumption without a narration, so nobody can explain the variance later. Others include creating a new item for every size variant, leaving by-products off the BOM, and posting stock journals in a different godown than the physical store. Fix these early because changing history in Tally later is slow. **Cta:** If your plant has outgrown Tally manufacturing and needs routings, work orders or shop floor tracking, Netray can help you assess the move to an ERP and connect AI reporting on top of it. **Faq:** #### Does Tally Prime support bill of materials? **Answer:** Yes. Enable Bill of Materials in the stock item features and define components, by-products and scrap on the finished good. When you post a manufacturing journal, the components are pulled in automatically and can be edited if actual consumption differs. #### What is a manufacturing journal in Tally? **Answer:** It is a stock journal voucher used to record production. It shows the finished good produced and the raw materials consumed in a single entry, so stock of both is updated together and cost flows from components to the finished item. #### How do I handle scrap and by-products in Tally Prime? **Answer:** Define them as separate stock items and add them to the bill of materials as by-product or scrap lines. When you post the journal, enter the actual quantities produced so the stock and the value split are recorded correctly. #### Is Tally enough for a manufacturing company? **Answer:** For simple batch or assembly units with a few products, often yes. Once you need routings, capacity planning, multi-level work orders, quality records or shop floor data, a manufacturing ERP is usually a better fit. ## Search terms tally prime manufacturing journal, tally manufacturing journal entry, tally bill of materials setup, tally prime stock journal manufacturing, tally manufacturing accounting checklist, tally prime production entry, tally by product scrap entry, tally prime manufacturer setup --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json