In this business case study we have considered the business process of Gold jewellery making/polishing etc. This work is outsourced and in Tally’s language ( a Job Work Out ) is issued.
Let us say we are into the gold business and we need to convert the raw gold into a processed- one- Jewellery.
We will see the steps as:-
This raw gold is transferred to the job worker 1.
This Job worker works and processes it and sends it back to us.
The payment to the job worker is based on the no of gms he converts from Raw Gold into Jewellery. The general trend is 50 Rs /gm. ( Although most jewellery shops might tell you it is much higher and may charge the end user rates as high as 300 /gm- also known as making charge)
At this time, we should also be able to see our