Summary: Many Indian manufacturers send materials to job workers for processing. Without proper tracking, material goes missing and costing becomes guesswork.
Job work — sending materials to external processors for machining, plating, stitching, dyeing or assembly — is common in Indian manufacturing. Tracking it on paper leads to disputes and inaccurate stock.
What to track
- Material sent to each job worker, with challans
- Processing type and expected return date
- Material received back, including scrap and wastage
- Pending material with each job worker
- Job work charges
Documentation
Goods sent for job work need proper challans and timely return tracking. Ensure your ERP generates the right documents and check compliance requirements with your CA.
Process in the ERP
- Create a job work order linked to production.
- Issue materials with a challan.
- Receive processed goods and record yields and wastage.
- Reconcile pending balances regularly.
- Book job work charges against the order.
Costing benefits
Accurate job work data improves product costing and helps compare job workers on quality, speed and cost.
Mobile updates
Job workers or supervisors can update status through a simple mobile interface.
FAQs
Can the ERP alert overdue job work?
Yes, based on expected return dates.
Does ERPNext support job work?
ERPNext includes subcontracting features that can be configured for job work.
What about wastage?
Record expected and actual wastage to identify problems.
