Job Work and Outsourced Material Tracking
Know what material is with which job worker, what came back, and prepare ITC-04 from the same records.
How can a business manage job work?
Material sent to a job worker stays yours, so it has to be tracked until it returns, and GST requires reporting it in ITC-04. TradeFlow records job-work challans with the job worker’s GSTIN, the process and the expected return date, records what came back, what moved to another job worker and what was lost, and prepares ITC-04 half-yearly from those records. TradeFlow prepares the return data; the returns themselves are filed outside TradeFlow, by you or your CA.
Who it is for
- Traders who send goods out for cutting, polishing, coating or packing
- Businesses that report ITC-04
- Businesses using more than one job worker
Common job-work problems
- 01
Nobody knows what is with which job worker
Material goes out to several processors, and the balance with each one is kept on paper.
- 02
Challans miss GST details
Handwritten challans leave out the job worker’s GSTIN or state, and ITC-04 cannot be prepared from them.
- 03
Returns are late and nobody notices
Material stays with a job worker far longer than planned.
- 04
Material moves between job workers
After one process, goods go straight to the next job worker, and the paper trail breaks.
- 05
Process loss is never recorded
Less comes back than was sent, and the difference disappears from the books.
- 06
ITC-04 is rebuilt twice a year
Half-yearly ITC-04 is assembled from registers and memory.
How TradeFlow addresses them
01Nobody knows what is with which job worker
Every job-work challan is tracked until its material comes back, so outstanding material is visible per job worker.
- Job-work challans
- Outsourced material tracking
02Challans miss GST details
Each challan records the job worker’s GSTIN and state, the process to be carried out, and the expected return date.
- Job worker & process details
03Returns are late and nobody notices
The expected return date is recorded on every challan, so material that is due back can be checked against it.
- Job worker & process details
- Outsourced material tracking
04Material moves between job workers
A receipt can record material as transferred to another job worker, keeping the chain of challans connected.
- Receipt outcomes
05Process loss is never recorded
Receipts record what was received back, what was transferred and what was lost or wasted.
- Receipt outcomes
06ITC-04 is rebuilt twice a year
ITC-04 is prepared half-yearly from the outsourced-material challans and their receipts already in TradeFlow.
- ITC-04
- ITC-04 from challans
The job-work workflow in TradeFlow
- 1
Challan out
Send material on a job-work challan with job worker, GSTIN, process and expected return date.
- 2
With job worker
Outstanding material is tracked against the challan.
- 3
Receive back
Record material received back into a warehouse.
- 4
Transfer
Or record it as transferred on to another job worker.
- 5
Loss & waste
Record any process loss or waste against the challan.
- 6
Close
Close the challan once its material is accounted for.
- 7
Prepare ITC-04
Prepare ITC-04 half-yearly from the challans and receipts.
- 8
File outside TradeFlow
You or your CA file ITC-04.
Every dispatch to a job worker, documented
Challans record the job worker, their GSTIN and state, the process, the material sent and the expected return date.
- Job-work challansSend material to job workers against a challan.
- Job worker & process detailsEach challan records the job worker’s GSTIN and state, the process, and the expected return date.
Account for everything that comes back
Receipts record material received into a warehouse, transferred to another job worker, or lost as process waste.
- Receipt outcomesMaterial coming back is recorded as received, transferred to another job worker, or loss and waste.
- Outsourced material trackingKnow what material is with which job worker.
- Multiple warehousesRun several warehouses, each with its own stock.
ITC-04 from the same records
ITC-04 is prepared half-yearly from outsourced-material challans and their receipts, with no separate calculation. TradeFlow prepares the return data; the returns themselves are filed outside TradeFlow, by you or your CA.
- ITC-04ITC-04 reporting for goods sent to job workers.
- ITC-04 from challansITC-04 is prepared half-yearly from outsourced-material challans and their receipts.
Who TradeFlow job-work tracking is suitable for
- Traders who send goods out for cutting, polishing, coating or packing
- Businesses using several job workers
- Businesses where material moves from one job worker to the next
- Businesses that need to record process loss
- Businesses reporting ITC-04
- Plywood, hardware and other traders with processing steps
Frequently asked questions
How does TradeFlow track material sent for job work?
Material goes out on a job-work challan and is tracked until it is accounted for, so you can see what is with each job worker.
What details does a job-work challan record?
The job worker, their GSTIN and state, the process to be carried out, the material sent and the expected return date.
Can material be sent from one job worker to another?
Yes. A receipt can record material as transferred to another job worker.
Can I record process loss?
Yes. Receipts record material as received back, transferred, or lost as waste.
Does TradeFlow prepare ITC-04?
Yes. ITC-04 is prepared half-yearly from the outsourced-material challans and their receipts. TradeFlow prepares the return data; the returns themselves are filed outside TradeFlow, by you or your CA.
Which businesses need job-work tracking?
Any business that sends its own material out for processing and expects it back, such as for cutting, polishing, coating or packing, and that reports it in ITC-04.
See job work tracked end to end
Book a demo and we will send sample material to a job worker, bring it back, and prepare ITC-04 in TradeFlow.