Job Costing is a method of costing where costs are assigned to a specific job project or batch. Each job is treated as a unique cost unit, and all related income and expenses are tracked to analyze profitability.
Job Costing is used to track expenses and incomes related to a specific project, contract, or job. It helps to know the profit or loss for each job or project.
Enable Job Costing in TallyPrime
- Press F11 → Accounting Features.
- Set “Maintain cost centres” to Yes.
- Set “Use cost centre for job costing” to Yes.
- Press Ctrl + A to save.
Steps to Use Job Costing
- Create Cost Centres (Jobs/Projects):
- Go to: Gateway of Tally → Create → Cost Centres
- Allocate Expenses and Income to Cost Centres
- While passing any expense/income entry, Tally will ask: “Allocate to Cost Centre?”
- View Report
- Gateway of Tally → Display More Reports → Cost Centres → Cost Centre Break-up
- It shows profit/loss for each project.
Assignment 1: Building Construction Project
You are handling a construction project for a client. You record purchases and services involved.
➤ Create Cost Centre: Building Construction
| Transaction | Amount | Voucher Type | Allocate to |
| Cement Purchase | ₹1,20,000 | Purchase | Building Construction |
| Labour Charges | ₹50,000 | Journal | Building Construction |
| Site Supervision Expense | ₹10,000 | Payment | Building Construction |
| Payment Received from Client | ₹2,00,000 | Receipt | Building Construction |
Profit = ₹2,00,000 – ₹1,80,000 = ₹20,000
Assignment 2: Office Renovation Work
You manage renovation for a client’s office. The project includes furniture purchase and labour.
Step 1: Create Cost Centre – Office Renovation
Step 2: Record Entries:
| Transaction | Amount | Voucher Type | Allocate to |
| Purchase of Furniture | ₹75,000 | Purchase | Office Renovation |
| Labour Charges | ₹25,000 | Journal | Office Renovation |
| Payment Received | ₹1,20,000 | Receipt | Office Renovation |
Task:
- Record purchases and labour under Office Renovation.
- Record income as Receipt.
- Profit = ₹1,20,000 – ₹1,00,000 = ₹20,000
Assignment 3: Computer Lab Setup for College
You are setting up a computer lab in a college. The project includes buying systems and hiring an installation team.
Create Cost Centre: College Lab Setup
| Transaction | Amount | Voucher Type | Allocate to |
| Purchase of 10 Computers | ₹3,00,000 | Purchase | College Lab Setup |
| Installation Charges | ₹25,000 | Journal | College Lab Setup |
| Network Cabling & Accessories | ₹15,000 | Journal | College Lab Setup |
| Payment Received from College | ₹3,75,000 | Receipt | College Lab Setup |
Profit = ₹3,75,000 – ₹3,40,000 = ₹35,000
Job Costing Summary Table
| Project Name | Total Expense | Total Income | Profit |
| Building Construction | ₹1,80,000 | ₹2,00,000 | ₹20,000 |
| Office Renovation | ₹1,05,000 | ₹1,25,000 | ₹20,000 |
| College Lab Setup | ₹3,40,000 | ₹3,75,000 | ₹35,000 |