How to Configure Job Costing in Tally Prime

For contractors, construction companies, manufacturing units, and service firms managing multiple projects, tracking project-wise profitability is essential. Tally Prime's Job Costing feature provides Cost Centres and Cost Categories to allocate and analyse income and expenses by project.

This guide walks through enabling job costing, creating project cost centres, and generating project-wise reports.

1. Enabling Job Costing in Company Features

1. Go to Gateway of Tally → F11 (Company Features) → Accounting Features.
2. Set "Maintain Cost Centres" to Yes.
3. Set "More than one Payroll or Cost Category" to Yes if you need multiple cost categories (e.g., by department and by project simultaneously).
4. Save the features. The Cost Centres and Cost Categories menu will now be available.

2. Creating Project Cost Centres

Each project or job becomes a Cost Centre in Tally:

1. Go to Gateway of Tally → Create → Cost Centre.
2. Enter the project name (e.g., "Project: Narayanguda Office Renovation").
3. Select the parent Cost Category (e.g., "Projects" or "Primary" for the default).
4. Repeat for each project or job that requires separate tracking.

3. Allocating Expenses to Projects During Voucher Entry

When recording purchase or expense vouchers, allocate the amount to the relevant project:

1. Record a Purchase Voucher (F9) for raw material or contractor fees.
2. After selecting the ledger, Tally will prompt you for Cost Centre Allocation.
3. Select the project cost centre (e.g., "Project: Narayanguda Renovation") and enter the full amount or percentage to allocate.

4. Generating Job-wise Profitability Reports

To view the profit or loss for a specific project:

1. Go to Gateway of Tally → Display → Statements of Accounts → Cost Centres → Cost Centre Break-up.
2. Select the project Cost Centre and set the date range.
3. The report shows all income and expenses allocated to that project, with the net surplus or deficit.