Key takeaways
- Treat material at a job worker as your stock, at a different location.
- Every challan out should be matched to receipts, scrap and losses coming back.
- Job work rules, time limits and return filings should be confirmed with your CA.
Many manufacturers send material out for machining, plating, painting or heat treatment. It is efficient, but it creates a blind spot: at any moment, a meaningful share of your inventory is sitting at someone else's site.
Treat it as your stock, somewhere else
The simplest mental model is that material at a job worker is still your stock, just at another location. Your system should show it that way: quantity, value and how long it has been there.
What to record on every challan
- Item, quantity and value sent
- The job worker and the process to be done
- The work order or sales order it relates to
- Expected return date
Match what comes back
When goods return, record finished quantity, rejected quantity, scrap and process loss against the original challan. Unmatched challans are where material quietly disappears.
Watch ageing
A weekly view of material at each job worker, sorted by how long it has been there, catches problems early. It also makes conversations with vendors much easier, because both sides are looking at the same list.
The Unitrix notes
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