Building materials and hardware
Accounting software for hardware shops
Most of a building material shop's money is out on site with contractors. Track every contractor's dues by age, collect against the right bills, and close the month on books that already agree.
In short
SimpleERP is accounting software for hardware shops and building material dealers in India. Contractor dues build from posted bills and receipts, ageing shows who is late, dealer bills feed payables, and reports are ready any day.
Illustration of receivables ageing: ₹2,14,800 to collect across 5 buckets, with customer totals.
An accounting day at Krishna Cement and Hardware
Krishna has ₹38,60,000 out with about sixty contractors at any time. Some pay by cheque at each slab, some by bank transfer at month end, and a few masons pay only when the house owner pays them. The cement and steel dealers, on the other hand, want payment within fifteen days or the next load waits.
With bills and receipts posted in SimpleERP, each contractor's ledger is current the moment a cheque is entered. The ageing report shows who has gone past 60 days, and the owner sees what he owes each dealer and when before he promises a new contractor more credit.
How do I record a contractor's cheque against his bills?
Record one receipt for the cheque, with the cheque number as the reference. SimpleERP allocates it to the oldest open bills first; change it to the bills the contractor named, or leave the rest on account.
- Receipts by cheque, bank, UPI or cash, each landing in the account it was paid into.
- Cleared column in the bank register to tick cheques as they clear.
- On-account money waits until it is applied to a bill.
Which contractors are past 60 days?
Receivables ageing splits each contractor's dues into not due, 1 to 30, 31 to 60, 61 to 90 and over 90 days, with the bills behind each figure. Print a statement for his accountant or copy a reminder to send yourself.
- Statements with a running balance and an ageing footer.
- Credit limit warnings on the next bill when a contractor is near his limit.
- Payables ageing for the dealers, so cash goes to the one due first.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
What should a building materials dealer check at month end?
Every bill, receipt and dealer bill is already posted, so month end is a short review. Work down the list, fix anything with a journal, and set the lock date.
- Trial balance, P&L and balance sheet on any date.
- Day book for the last day of the month.
- Lock date stops edits to the closed month; reopening is logged.
| Ledger account | What posts to it | Month-end check |
|---|---|---|
| Contractor receivables | Bills, receipts, credit notes | Ageing over 60 days; hold credit for anyone past 90 |
| Dealer payables | Dealer bills, payments, debit notes | Match the cement and steel dealers' statements |
| Bank | Cheques in, dealer payments out | Tick cleared cheques; chase any that did not clear |
| Inventory | Dealer bills, sales at average cost, write-offs | Stock list value equals the inventory account |
| Output and input GST | Bills and dealer bills, per tax head | GSTR-1 check from the sales register; dealer bills against GSTR-2B |
| Freight and loading | Expenses and tempo hire | Compare with tonnes sold; a jump means unbilled transport |
How do I record an advance paid to the cement dealer?
Pay the dealer before the load and the payment sits on account against him. When his bill arrives, apply the advance to it, and the payables ageing shows only what remains.
- Debit notes for short supply reduce what you owe.
- Supplier statements with a running balance.
- Expenses such as tempo hire and loading, with the slip photo attached.
One system
What it connects to
Bills, receipts and dealer bills post to the ledger as they happen, so the ageing and the P&L are current.
Building materials and hardware
Mixed-rate GST invoices, stock by godown and shop, and contractor credit with ageing.
See howGST billing for hardware shops
Bills in bags, lengths, kilos and litres with HSN on every line, contractor credit days and IGST for sites across the state border.
See howInventory for hardware shops
Cement, steel, pipes and paint by godown and shop, in their own units, at average cost, with a reorder level for every size.
See howPayroll for hardware shop staff
Monthly pay for counter staff, the godown keeper and drivers, with advances recovered and a Sankranti bonus.
See howAccounting
A double-entry ledger with journals, bank registers, statements and a lock date.
See how
Honest limits
What SimpleERP does not do yet
- No bank feeds: bank entries are recorded and reconciled by hand
- No multi-currency; every document is in rupees
- GST return filing and e-invoicing are not done inside the product
- No post-dated cheque register: record the receipt when the cheque is banked
- No interest calculation on overdue contractor dues; post any interest you charge with a journal
Getting started
Start with accounting
Sign up with your phone
Name, phone number and a password. No card for the seven-day trial, and email is optional.
Tell us about the business
Type your GSTIN and the state fills itself. Accounts, GST rates, units, roles and numbering are seeded for you.
Enter opening balances
Enter each contractor's outstanding and each dealer's balance as opening balances on the first of a month, then post every new bill and cheque in SimpleERP.
Run the trial balance
Every posted document is already in the ledger; the trial balance and P&L are ready on any date.
FAQ
Questions, answered
How do I handle a contractor's bounced cheque?
Cancel the receipt you recorded for it. Cancelling reverses the entry, so the bills it settled are open again and the bank balance drops back. Any bank charge goes in as an expense.
Can I see which contractors owe me the most?
Yes. Receivables ageing lists every contractor with total dues and the split by age bucket, so the largest and oldest balances are easy to find. Open a row to see the bills behind it.
Do I still need Tally for my CA?
No. SimpleERP keeps the full ledger, trial balance, P&L, balance sheet and GST registers, and every report exports to CSV. Your CA files GST returns from those reports.
A contractor paid one lump sum for many bills. How is it split?
Record one receipt for the full amount. SimpleERP settles the oldest bills first and shows each allocation; change them if the contractor names particular bills. Anything left over stays on account.
Related
Keep reading
Building materials and hardware
Mixed-rate GST invoices, stock by godown and shop, and contractor credit with ageing.
Read moreGST billing for hardware shops
Bills in bags, lengths, kilos and litres with HSN on every line, contractor credit days and IGST for sites across the state border.
Read morePayroll for hardware shop staff
Monthly pay for counter staff, the godown keeper and drivers, with advances recovered and a Sankranti bonus.
Read more
See how accounting works in SimpleERP for building materials and hardware
Seven days free. No card. Your first GST invoice in minutes.