Industry playbook
Small & mid-size manufacturers
How small manufacturers automate BOM production, stock and GST with hisabkitab
Consider a small manufacturer of plastic moulded household products with a factory and a separate finished-goods godown, supplying distributors in three states. It buys polymer granules, masterbatch and packaging, sends some work out to job workers, and dispatches several trucks a week. The owner knows sales and cash in the bank, but not the real cost of each product or how much granule ends up as scrap.
The challenges
Where factory profit leaks out
Raw material in, finished goods out, nothing in between
Granules, colour and packaging go into production, but the books record only purchases and sales. Without production entries, raw material stock is a guess, finished goods appear from nowhere, and the cost of each product is unknown.
Scrap and wastage
Runners, rejects and start-up waste are part of every moulding run. If scrap is not measured and recorded, yield problems stay hidden and the factory pays for material it never sells.
Job work outside the factory
Printing, assembly or packing is sometimes done by job workers. Material sent out on informal slips is hard to track, and short returns are discovered months later.
Dispatch compliance
Every truck to a distributor needs an invoice, often an IRN, and an e-way bill. Doing these manually on portals slows dispatch and introduces mismatches with the books.
Audit-ready books
Companies need an audit trail in their accounting software and auditors want clean stock records. Editable spreadsheets and backdated changes create uncomfortable audit conversations.
A day in the life
A day before vs after hisabkitab
Before
Production is noted in a shift register; the books see only purchases and sales.
Scrap is weighed occasionally and sold without proper records.
Job-work material leaves on handwritten slips.
E-way bills are generated on the portal after the truck is loaded.
With hisabkitab
Each production run is a Stock Journal entry against the BOM: raw materials out, finished goods and scrap in.
Scrap is recorded as its own item and sold through normal invoices.
Job-work issues and receipts move on delivery challans.
Invoices generate IRNs and e-way bills in one click, and Audit Trail logs every change.
Solutions
How hisabkitab solves it
No production records
Stock Journal with BOM
Define a bill of materials for each product, then record each run: raw materials consumed, finished goods and scrap produced. Stock of every item stays right and product cost becomes visible.
Unknown product cost and margin
Item-wise Profit Report
With production recorded, the Item-wise Profit Report shows which products actually make money at current material prices.
Scrap and yield
Scrap as an item + Stock Journal
Record scrap from each run as its own item, then compare expected and actual consumption to spot yield issues.
Job work
Delivery Challan
Send material to job workers on delivery challans and receive processed goods against them. Pending challans show what each job worker holds.
Purchase bill load
OCR Purchase Bill Import (AI)
Upload supplier bills; AI extracts lines and tax for review, keeping raw material stock current.
Dispatch compliance
Unlimited e-invoice & e-way bill
Generate IRNs and e-way bills from each invoice, with transporter and vehicle fields on the bill.
Audit readiness
Audit Trail + Freeze Transaction
Every change is logged with user, time and before/after values, and closed periods can be frozen.
Inside the software
Built for your books
Custom formula example
Polymer consumed (kg) = Pieces produced × Weight per piece (kg). Example: 5,000 buckets × 0.42 kg = 2,100 kg of granules, plus measured scrap.
4-level grouping
Items: Finished Goods → Buckets → 16 L → Blue. Raw materials: Raw Material → Polymer → PP Grade A → 25 kg bag. Customers: State → Distributor tier → Salesman → Party.
Reports you’ll use
Stock Summary · Item-wise Profit Report · Bill-wise Profit Report · Dispatch Report · GST Report · Supplier Outstanding Report
Compliance notes
Most manufactured plastic and engineering products attract 18% GST, but confirm each HSN, and keep raw material HSNs accurate to support input credit. Goods sent for job work move under challans with their own documentation rules. Manufacturers above the e-invoicing threshold must generate IRNs for B2B invoices, consignments above ₹50,000 need e-way bills, and companies must maintain an audit trail in their accounting software. Keep production and scrap records ready for auditors and for any GST query on input credit.
Recommended plan
The plan that fits
Advance
₹6,999/year, exclusive of 18% GST (or ₹13,999 for 3 years)
Stock Journal with BOM, Audit Trail, Freeze Transaction, AI-OCR for purchase bills and unlimited e-invoices and e-way bills are all on Advance, which is designed for manufacturing. Smaller single-product units can start on Boost and move up when they need production entries.
FAQs
Frequently asked questions
Does hisabkitab support bill of materials?
Yes. On Advance, Stock Journal handles raw-to-finished production with a bill of materials. Define what goes into each product, then record each production run. Raw material stock reduces, finished goods and scrap increase, and the cost of each product becomes visible in your reports.
Can I track material sent to job workers?
Yes. Send material on a delivery challan and record the processed goods when they return. Pending challans show what each job worker still holds, so short returns and delays are caught early rather than in the year-end stock count. Each challan stays linked to its return.
Can I keep factory and godown stock separate?
Yes. Set up the factory and the finished-goods godown as separate locations. Production adds finished goods at the factory, transfers move them to the godown, and Stock Summary shows each location separately so dispatch always knows what is available. Transfers carry their own challan record.
Is hisabkitab audit-trail compliant for companies?
Advance includes Audit Trail, which logs every voucher change with user, timestamp and before and after values, along with Freeze Transaction to lock closed periods. Together they support the audit-trail requirement that applies to companies and make statutory audits smoother.
How does it help with cash planning?
Cashflow Forecasting projects 30, 60 and 90-day inflows and outflows from distributor dues, supplier payables and recurring items. Before you commit to a large granule purchase, you can see whether collections will cover it or whether you need to follow up first.
Keep exploring
Related industry playbooks
See the real cost of every product
Book a demo and we will set up a bill of materials for one of your products and record a sample production run with scrap.
