Document outward material
Prepare outward challans with material quantities and supplier details before sending goods for processing.
MATERIAL ISSUES, RECEIPTS & SUPPLIER BALANCES
Track materials sent for job work.
Send material with job-work challans, receive the finished output and account for the material consumed. Check what remains with each supplier.
Included in Advance
Supplier material 06 Nov 2026
Precision Hose WorksRubber hoseRM-0012 · 2 released challans
PartialMaterial sent100 mWith supplier78 m
22 m consumedAllocated across 2 challans
100 cut pieces receivedGRN-0086 · Finished output
Illustrative workspace · Sample data
MATERIAL OUT, FINISHED GOODS IN
Manage outward material and job-work receipts.
Keep the material sent, the output received and the material consumed in separate records. Use challans, receipts and supplier balances to follow each stage of the job work.
Track supplier-held stock
Review material balances and consumption allocation associated with the supplier and job-work records.
Reconcile the return
Capture receipts and use reconciliation reports to follow the quantities returning from the subcontractor.
OUTPUT, MATERIAL & CONSUMPTION
Set the material needed
for each finished item.
Define the job-work output and its material consumption rule. Include the consumption unit and wastage allowance so the receipt can calculate the required material quantity.
01
Choose the output and supplier
Set up a rule for an output item, with a supplier-specific process or one available across suppliers.
02
Set consumption and wastage
Enter material usage for the defined output quantity. Add fixed wastage or a wastage percentage where required.
03
Convert to the material’s stock unit
Use the item’s configured unit conversion when consumption is measured differently from stock.
For example: 200 mm of hose plus 20 mm wastage consumes 0.220 m for each cut piece received.
JOB-WORK PROCESS · JW-PROC-0042
ActiveCut hose 200 mm
OUTPUT ITEMFG-0042 · Cut hose 200 mmFor each 1 Nos received
- Supplier
- Precision Hose Works
- Material
- Rubber hose · RM-0012
Consumption200 mm
Fixed wastage20 mm
Stock unit: m 1 m = 1,000 mm
Material per cut piece0.220 m
200 mm + 20 mm · No percentage wastage
Illustrative workspace · Sample data
JOB-WORK CHALLAN · 04 NOV 2026
ReleasedJW-0042
FROM WAREHOUSEMain plant
TO SUPPLIERPrecision Hose Works
MATERIAL SENTRubber hoseRM-0012 · Raw material
80 mEarlier challan JW-0041 · 20 m02 Nov 2026 · Released
Total material sent100 m
Job-work challan PDF
Illustrative workspace · Sample data
JOB-WORK PURCHASE ORDERS & CHALLANS
Send material with
a job-work challan.
Use a job-work purchase order for the supplier and the output to receive. Create outward challans for the raw material being sent, with its quantity and warehouse details.
01
Prepare the job-work order
The PO identifies the supplier, receiving warehouse and output item. Job-work POs support the open-order receipt flow.
02
Record each material dispatch
Choose a job-work challan type and record the material, quantity, supplier and stock location.
03
Release and share the challan
Release records the outward stock movement. Download the job-work challan PDF for the dispatch.
GOODS RECEIPTS & CHALLAN ALLOCATION
Receive finished goods
and reconcile material.
Create a goods receipt against the released job-work PO. Review the material consumption for the received output. On release, consumption is allocated against the supplier’s oldest eligible challan balances first.
GOODS RECEIPT · 06 NOV 2026
ReleasedGRN-0086 Precision Hose Works
OUTPUT RECEIVED100 Nos
Cut hose 200 mm · FG-0042
MATERIAL CONSUMED22 m
100 Nos × 0.220 m per piece
JOB-WORK POPO-JW-0018
Receiving warehouse · Main plant
Material allocated to this receipt
Rubber hose · Oldest challans first| Challan | Sent | Consumed | Balance | Register |
|---|---|---|---|---|
| JW-0041 02 Nov 2026 | 20 m | 20 m | 0 m | Closed |
| JW-0042 04 Nov 2026 | 80 m | 2 m | 78 m | Partial |
| Total material | 100 m | 22 m | 78 m |
22 m of raw material accounted for. 78 m remains against JW-0042.
Illustrative workspace · Sample data
Output received
Record the finished item and quantity received from the supplier: 100 cut pieces in this example.
Material consumed
Apply the configured rule: 100 pieces × 0.220 m uses 22 m of raw hose.
Oldest challans first
Allocate 20 m from the first challan and 2 m from the next, leaving 78 m available.
MATERIAL BALANCE & RECONCILIATION REPORTS
Check the material
still with each supplier.
Use the stock availability report to review outstanding material balances by challan. Use the reconciliation report to trace material consumption to the goods receipts that used it.
01
Review outstanding balances
Filter by supplier, warehouse, material or register status to find the balances you need to follow up.
02
Trace consumption to a receipt
The reconciliation report shows challan details, GRN references, material consumed and the running pending quantity.
03
Export the records to Excel
Download stock availability and reconciliation reports for supplier discussions and internal review.
Supplier stock availability
Precision Hose WorksMain plant
RUBBER HOSE · RM-0012
PartialJW-0042
04 Nov 2026- Sent
- 80 m
- Consumed
- 2 m
AVAILABLE MATERIAL78 m
Balance against this challan
Reconciliation links the 2 m consumed from this challan to GRN-0086.
Download report as Excel
Illustrative workspace · Sample data
CHECKS BEFORE RECEIPT RELEASE
Check the material
behind each receipt.
Review the output quantity, selected raw material and required consumption before releasing a job-work receipt.
Eligible challans
Receipt allocation uses released job-work challans for the PO supplier, with available material in open or partial registers.
Sufficient material
The release checks the current supplier material balance before applying consumption to the challans.
Recorded allocations
Each allocation keeps the consumed quantity against its source challan item and receipt item for reconciliation.
Can received goods differ from the material sent?
Yes. The job-work PO identifies the output item, while the challan identifies the material sent. The configured consumption rule relates the selected material to the output received.
Can consumption use a different unit from stock?
Yes, using the item’s configured stock unit, second unit and conversion factor. For example, consumption in millimetres can be converted into metres of raw-material stock.
How are wastage allowances handled?
The consumption rule can include a fixed wastage quantity and a percentage of the consumption quantity. These allowances are included when calculating material required for the received output.
What happens when material was sent on several challans?
Consumption is allocated to the oldest eligible challan balances for that supplier and material. One receipt can use material from more than one challan, and the allocations appear in reconciliation.
Can we review material still with a supplier?
The subcontracting workflow provides supplier material balances and reconciliation reports. Your issue, consumption and receipt steps are mapped during implementation.
Which ERP plan includes subcontracting?
Subcontracting and job work are included in Advance, alongside shop-floor performance, integrations and HRM, plus the manufacturing modules in Growth.