In this guide 6 sections
Close the month by matching signed challans to invoices, settling part loads and returns, and ageing each contractor’s balance site by site. Then count yard stock by brand, grade and diameter, and list post-dated cheques due next month. The collection round then starts from facts, not memory.
Match every load to a signed challan
A load without a signed copy is a load the contractor can dispute. At month end, list every challan raised and mark which came back signed or photographed at the site. The rest need chasing this week.
Then match challans to invoices. Every invoice should rest on what was delivered, not on what was ordered. A challan with no invoice is money not yet billed.
- Challans raised this month
- Signed copy or site photo on file
- Invoice raised against each challan
- Challans still unsigned, by site
Close or carry the part loads
Half the steel went today and the rest was promised for next week. If that balance lives in one person’s memory, the site will call to ask for it. Worse, it may never be billed.
Read the list of open balances before closing. Either the second trip went and the order closes, or the balance carries into next month with a date. Nothing should sit open without one.
Settle returns before reading the ledger
Unused cement bags and cut lengths of steel come back from sites. A credit promised on the phone but never written leaves the ledger and the yard out of step.
Raise a credit note for each return against the invoice it reverses, and add the material back to yard stock. Do this before ageing balances. Otherwise the contractor’s statement will be wrong.
Age the balances site by site
A contractor running several sites pays when each builder pays him. One running balance hides which site is clear and which is behind. Age the outstanding per contractor and per site.
Review credit limits at the same sitting. A contractor who keeps crossing his limit is a decision for the owner, not for the person taking orders. GullySystem’s Building Material Trading Software holds orders past the limit until the owner releases them.
Count the yard and line up next month’s cheques
Count cement by brand and grade, steel by diameter and weight, and sand and aggregate by load. Compare each with the books. A gap found now is cheaper than one found at year end.
Last, list post-dated cheques with their due dates, and check that rate lists carry the dates they apply from. The collection round for next month starts from this sheet.
- Cement by brand and grade
- Steel by diameter and weight
- Post-dated cheques by due date
- Rate lists with their start dates
Yard month-end close sheet
One page with five boxes: unsigned challans, open part loads, returns without credit notes, site-wise balances over your credit period, and post-dated cheques due next month. Fill it on the last working day. Hand it to whoever runs the Saturday collection round.
Open a blank worksheet to printQuestions owners ask
Can the software issue e-way bills?
Not on its own. It prepares the data from the challan, with vehicle, distance and value. The bill itself is generated on the portal or through the provider your accountant already uses.
Do our books stay in Tally?
They can. Invoices, credit notes and receipts export for your accountant to import into Tally under the ledger names used today.
Can the software decide which contractor deserves credit?
No. It holds the limits you set and records who released an order past them. Whom to trust remains the owner’s decision.
Is this routine worth it for a small yard?
The routine is, even on paper. Software helps once credit, sites and deliveries outgrow what one person can hold reliably.