Lesson-29 Enable Order Processing

Order Processing in Tally.ERP 9 can be classified into Purchase/Sales Order Processing and Job Order Processing.

Purchase / Sales Order Processing

Purchase Order Processing is the process of placing orders with suppliers for a purchase to be made from them and Sales Order Processing is the process of receiving orders from customers for the purpose of selling. Usually, companies need to track the Order details for Sales and Purchases as this significantly helps in planning the production process accordingly.

In Tally.ERP 9, Order Processing is linked to Inventory. This allows tracking of the order position for a Stock Item. Using this you can track the arrival of goods ordered and whether the ordered Stock Item are delivered on time etc.

Job Order Processing

Job Order Processing is the process of taking an order to manufacture or process goods as per the prescription of the client by utilising the material supplied by the client or purchased on behalf of the client and charging him for the services provided as Job Work or Sub Contract.

Tally.ERP 9 allows to process the job work taken from a client as well as job work given to job workers. It also allows the principal company to track the materials despatched to job workers and materials received against the job given, and vice versa.  

Purchase Order

Purchase Order is an order placed by a business entity with a supplier for the delivery of specified goods at a given price and at a predetermined time.

Sales order

Sales Order is an order placed by a customer for the delivery of specified goods at a given price and at a predetermined time.

Job Order

Job Order can be classified into Job Work Out Order and Job Work In Order.

Job Work Out Order

Job Work Out Order is an order placed by the principal to manufacture or process goods as per the prescription given to the job worker.

Job Work In Order

Job Work In Order is an order received by the job worker to manufacture or process goods as per the prescription given by the principal.

Enabling Order Processing

To enable Purchase Order, Sales Order and Job Order Processing in Tally.ERP 9, activate the following in F11: Features (F2: Inventory Features)

Set Allow Purchase Order Processing, Allow Sales Order Processing and Job Order Processing to Yes in the Order Processing section.

Note: When Allow Job Order Processing is set to Yes, the options Maintain Multiple Godowns and Use Material In/Out get enabled automatically.