Mastering the Job Work Cycle: Automated Reconciliation with Finsys ERP
Indeed, managing material movement between your factory and external job workers is one of the most complex tasks in manufacturing. Whether you are dealing with 57F4 compliance or Returnable Gate Passes (RGP), maintaining a “Single Source of Truth” is essential. In this guide, we explain how the Finsys Vendor Portal automates the reconciliation of sent, cleared, and pending materials.
The Challenge: Disconnected Challans
Typically, companies send various components to job workers using multiple delivery challans. However, when the finished goods (FG) return, it becomes difficult to identify which specific challan is being cleared. Manufacturing Job Work Cycle Fortunately, Finsys ERP solves this by linking the Bill of Material (BOM) directly to the vendor’s production entry.
The Process Flow: How the Vendor Portal Works
1. Robust BOM Structure
Initially, a clear Bill of Material must be defined for the assembly. Specifically, this includes all child items and even packing materials required by the job worker. By doing so, the system knows exactly what quantity of raw material should be consumed for every unit produced.
2. Multi-Challan Material Dispatch
Furthermore, you can send material produced or purchased by you through different challans (Challan 1, Challan 2, etc.). Consequently, the job worker’s account is debited with these specific batches of stock.
3. Vendor-Side Entry for Accuracy
Crucially, before sending the finished assembly back, the job worker logs into your Finsys Vendor Portal. Rather than manual reporting, the vendor selects the FG produced and the system automatically calculates the required material consumption Manufacturing Job Work Cycle.
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Smart Validation: If the vendor enters an incorrect quantity that does not match the BOM or the available stock in their challans, the system will not save the entry. Therefore, data accuracy is guaranteed at the source.
Real-Time Reporting and Visibility
Ultimately, the greatest benefit is the automated reporting. As a result of the vendor “knocking off” specific challan numbers during their production entry, your team gets instant visibility into:
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Cleared Challan List: Materials that have been fully processed and returned.
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Pending Challan List: A detailed report showing which batches are still sitting at the job worker’s site.
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Batch-wise Traceability: Essential for quality audits and GST 57F4 reconciliation.
Admittedly, manual reconciliation can take days. However, with Finsys, this report is generated automatically, helping in proactive Job Worker Management.
Conclusion: Agile Industry Through Automation
To conclude, the Finsys Vendor Portal transforms a messy manual process into a streamlined digital workflow. By empowering your job workers to update their own production, you reduce your internal workload and eliminate errors.
Watch the Full Video on Job Work Reconciliation: https://youtu.be/5mWWOukBBhk
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