Manufacturing industries have many activities going that include sourcing, inventory of raw materials, inventory of in-process and semi-processed materials, finished goods and sales as well as returns. Simple accounting solutions are not adequate for such extended functions. Each manufacturing unit may follow a unique system that requires customizable ERP and accounting rolled into one to be easy to use and cost-effective. Tally ERP 9 is the best platform for manufacturers and traders in a variety of ways.
One of the greatest advantages of Tally ERP 9 for manufacturing-trading segments, especially one with multi-branch operations, is its decentralized deployment feature. Each manufacturing unit can be accounted for separately and synchronized to the main head office server. Each user is location has an individual log in. In addition, the supply side is also integrated and kept in distinctive channels while being integrated into the head office accounting. This means each individual plant manager has full control and view of operations and so does the head office. This decentralized arrangement also obviates the need for data porting and integration at a later stage.
Department-Wise And Branch Wise Operations
Tally ERP 9 feature allows purchase managers in purchase departments in the manufacturing industry to group, classify and categorize vendors as well as maintain contact details. Minimum inventory levels can be flagged to raise a reorder alert. In addition, one can classify purchases into various types and categories.
The stores or warehouse manager has a powerful tool in Tally ERP 9 to manage inventory. Users can categorize inventory items into various groups and track each individual item even in the largest warehouse. In addition, inventory in warehouses in various locations too can be tracked precisely. Apart from this ERP 9 has a provision to keep track of items in transit from one warehouse to another or from the plant to the warehouse and from warehouse to customer. Statements of first in first out items can be prepared for submission to banks.
Accountants Will Love Tally ERP 9
Accountants will simply love Tally ERP 9 since it gives handles on all accounting functions. Accounting also involves the inclusion of statutory compliance that becomes so easy with Tally ERP 9 customization that expert Tally solutions providers can put in place. Invoices can be customized to handle GST as well as quantities and weight. One can feed in HSN codes and generate GST compliant bills, get the GST to reflect in accounts and purchases and allow for setoffs against purchase GST. It becomes easy to generate eWay bills in Tally ERP9.
From head office down to branch offices, each link in the chain can have its sales management procedure, view sales transactions and even monitor each salesman’s productivity. Tally ERP9 permits the classification of customers according to products purchased, quantum, frequency of purchases and according to regions. Further sales can be categorized into cash, credit and counter sales plus one can view payment history, generate a list of outstanding bills and arrange for automatic reminders.
Purchase and sales can sync together in that:
- The purchase department can fine-tune the purchase process and manage the supply side to ensure production is maintained.
- Short-term and long-term production policies can be defined and managed based on inputs by the sales section.
- With fluid interworking with purchase, sales departments can help in controlling manufacturing costs and in price stability. Fast delivery leads to happy customer experience and that has an overall positive impact on the company’s growth.
Building on the above capabilities the package permits production staff to define parameters. One can start with a bill of material to create a new item and specify items that go into manufacturing one specific product for instance. This reflects in the manufacturing journal and adjusts inventory. At the same time other parameters like labour, power, transportation, etc. are added so production costing can become extremely granular. These values can be added as a percentage of the cost or simply specify a notional value if not easily quantifiable.
Payroll and HR
The built-in payroll management makes it a fluid process to generate payrolls in time and link payments, deductions and tax to the financials module.
Management at HQ can generate branch-wise reports on any aspect of their business operations and have an overview or drill down to details. Tally ERP9 also has the facility to generate key metrics such as profits, costs, transactions, and performances. This superb package is an all in one business management solution that managements can leverage to derive intelligence with Tally customization helping to make it more accurate as well as easy.
A Connected World
All operations in manufacturing are interlinked and connected. The sales department obtains orders and passes it to manufacturing that then arranges for the procurement of inputs either by issuing a purchase order, which can be done in Tally ERP9 or raise a bill of materials. This reflects in inventory, stock and costing and, when a product is ready, production and management know just how much it cost. Production and inventory people can keep track of sales movements and estimate the requirement of stocks and raw materials. Management and sales can make decisions about inventory and pricing. There also is a connect to distributors, wholesalers, and traders in the sales chain. Tally customization permits stock ageing and delinking of inventory value as well as multiple currency integrated with forex rates.
Distributors And Traders
If manufacturers benefit across the board by implementing Tally ERP9 then distributors and wholesalers too can opt for Tally ERP9 customization. It is possible to create multiple units of measurement for calculation of price and maintain multiple price lists. GST calculation and claiming set off becomes automated. Further down the chain traders benefit by fast billing that includes barcode support and tax calculation. Reports can be generated in a moment and Tally invoice customization also permits printing in several languages.
Tally, in its ERP9 avatar, is a far cry from the earlier versions that simply dealt with accounting and financials. Tally ERP9 is a complete integrated solution for manufacturing industries and for trading segments permitting flexible customization across various features. Tally customization, when done by experts like Smart Sight Innovations, can improve efficiency and productivity even more.