Tally · garments and hosiery

Tally for garments: lot tracking, job work and karigar pay.

The lot, the job worker and the karigar, kept in the ledger rather than in a register.

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What it is: A TDL module for TallyPrime

The problem

A hosiery or garment unit does not buy material and sell a finished product. One lot goes round like this:

Yarn boughtThe lot number starts here
KnitterYarn out, fabric back
DyerFabric out, back in a colour
StitchingBecomes a garment, size and style
Finished stockSold at the other end

The lot number is what ties the five together.

Standard Tally handles the purchase and the sale at either end. The accounts see none of the middle, which is where the money is, until an invoice arrives. So nobody knows what a lot cost until long after it was sold.

What the garments module adds to TallyPrime

The garments module is a TDL customisation for TallyPrime, written for the garment and hosiery industry. It works on the company you already have.

Lot-wise tracking. The lot is the unit the business thinks in, not the item code. A lot number, from a series you set, starts at purchase and follows the material through every stage back to finished stock, so "where is lot 214" has an answer in the system rather than in somebody's memory.
Job work, properly accounted. Material issued to a job worker is still your stock: it has left the building, not your balance sheet. Each job worker's process is held as its own location, and the issue, the return, the consumption and the wastage are recorded against it, so their account and your stock agree at month end instead of being argued about.
Colour and article as real attributes. A colour master, and processes set by article number.

Vouchers

Flat Issue sends material out for job work against a sale order, with colour, quantity and location on each line.
Flat Receipt brings it back. The job work charges entered on it post the job worker's purchase voucher automatically, so the bill is not keyed twice.
Job cards for work done in-house, carrying the processes still pending for that item, and a card transfer entry when a process moves from one person to another, with any wastage recorded on the way.
Gate entries: returnable gate passes (RGP) for material that goes out and comes back, non-returnable (NRGP) for material that does not.

Karigar-wise production and pay

In-house work is paid by the piece, and the rate is not one number. Stitching a T-shirt pays differently from checking it, and two karigars on the same process may not be on the same rate.

Rates set per karigar, per process, per article. Entered once, picked up every time that karigar's work is recorded.
Production recorded against the job card. Each entry says which karigar did which process on which card, and how many pieces.
The amount calculated, not worked out on a calculator. Pieces multiplied by that karigar's rate for that process, totalled for the week or the month.
The labour slip. Karigar, date, card, article, process, pieces, rate and amount, ready to pay from.

A worked example, with illustrative rates: card 12, 420 T-shirts. Rakesh cuts all 420 at ₹2 a piece, ₹840. Mukesh stitches them at ₹6, ₹2,520. The checker passes them at ₹1, ₹420. Card 12 has cost ₹3,780 in labour before it goes for packing, and each of the three has a slip that says why.

Reports

The module carries the working reports a unit checks daily: fabric issue, accessory issue, job work in-out and job work pending, party-wise material out, lot-wise material in-out, rejection in-out, card processing detail, card-wise finish, pending cutting, labour slip, and a list of unauthorised vouchers.

What it changes

Most units can tell you their overall margin at the end of a year. They cannot tell you which styles made it.

That is not a failure of accounting. The cost of a lot is spread across a yarn purchase in March, a knitting bill in April, a dyeing bill in May and a stitching bill in June, in four different ledgers with nothing tying them together. The module does not total those into a cost per style. It puts the lot number on every one of them, so the bills for a lot can be found and added up rather than reconstructed.

GST on job work

Material goes out on a delivery challan rather than an invoice, returns are tracked against it, and the job worker's charges are taxed separately. Getting that wrong is one of the more common findings in this trade, and it is usually a set-up problem rather than a compliance decision.

Keep the challans and returns in the same books that track the lot. A parallel register kept for GST is a register that will not match.

Questions

How do I account for job work in Tally?

Material sent to a job worker stays your stock and goes out on a delivery challan rather than an invoice. The part most units get wrong is wastage. Agree the allowance with each job worker and record it, or the reconciliation at year end becomes a negotiation rather than arithmetic.

Talk to us

Call +91 161 5044 180 and describe how material moves through your unit: which stages are in-house and which go out. That is enough to say what this would involve for you.