Leather & footwear
Manufacturing software for footwear makers
Put the leather, sole, insole and labour for a lot of pairs on one bill of materials, run each lot as a work order and see what a pair really cost.
In short
SimpleERP is manufacturing software for footwear and leather goods makers in India. A bill of materials per article and size holds leather in sq ft, soles, components and cutting waste, and each work order costs a lot of pairs from actual use.
Illustration of a bill of materials with cost roll-up and a work order moving from planned to in progress to completed.
A manufacturing day at Yamuna Footcraft
Yamuna Footcraft has a new tan loafer that a Lucknow retailer wants for the wedding season. The owner priced it at ₹780 a pair from experience, but the leather is a new grade, the sole moulder has raised his price, and the closing karigar wants more for the stitched apron.
The cutting table works in lots of 24 pairs per size. Until now, nobody compared the square feet issued for a lot with the square feet a good clicker should need, so leather waste stayed hidden inside the month's purchases.
In SimpleERP the loafer has a bill of materials per size, and each lot is a work order. Completing the work order takes the actual leather, soles and components out of stock and puts the finished pairs in at their real cost per pair.
What goes into a BOM for a lot of loafers?
List upper leather and lining in sq ft, soles in pairs, insole board, adhesive, thread and boxes per lot, add a scrap percentage for cutting waste on the upper, and put clicking, closing, lasting and finishing labour as additional cost per lot.
- Scrap on upper leather reflects grain faults and the shape of the pattern.
- A BOM per size, because a size 10 uses more leather than a 6.
- Versions when the sole or lining changes; earlier work orders keep their plan.
| Component | Quantity per lot | Cost |
|---|---|---|
| Upper leather, tan | 48 sq ft @ ₹105 | ₹5,040 |
| Lining leather | 40 sq ft @ ₹42 | ₹1,680 |
| TPR sole | 24 pairs @ ₹95 | ₹2,280 |
| Insole board | 3 sheets @ ₹160 | ₹480 |
| Adhesive | 1.2 kg @ ₹360 | ₹432 |
| Thread | 2 cones @ ₹90 | ₹180 |
| Shoe boxes | 24 @ ₹18 | ₹432 |
| Scrap allowance | 10% of upper leather | ₹504 |
| Clicking, closing, lasting and finishing | per lot | ₹3,120 |
| Lot cost (per pair) | ₹14,148 (₹589.50) |
How does a work order per lot move leather and pairs?
Raise the work order from the retailer's sales order line, and it plans the leather and soles from the BOM and checks them in the chosen godown. Start it when clicking begins and complete it when the pairs are boxed.
- Actual square feet are entered at completion, so a wasteful cut shows in the cost.
- Only completion moves stock, and the journal posts with it.
- Start and complete from a phone at the clicking table.
Illustration of stock on hand by warehouse at average cost, with a low-stock row highlighted and a movement ledger.
Is ₹780 a pair still the right price?
A completed lot gives a cost per pair. Put ₹589.50 next to the ₹780 selling price and the gap is what is left for overheads, freight and margin. When the next lot costs more because the tannery raised its rate, the change is in front of you before you quote again.
- Finished pairs sit in stock at the lot's actual cost until invoiced.
- Cost of goods sold posts at that cost when the retailer is billed.
- Each size shows its own cost per pair from its own lot.
One system
Where manufacturing connects
Work orders draw leather and components from inventory and post to the books; the invoice books the sale at the lot cost.
Leather & footwear
A BOM per article, work orders per lot, leather stock in sq ft and GST invoices.
See howGST billing for footwear makers
Pairs by article and size on GST invoices to retailers, with HSN per line and IGST for other states.
See howInventory for footwear makers
Finished leather in sq ft, soles in pairs, adhesive in kg and finished pairs by size, per godown at average cost.
See howAccounting for leather businesses
Tannery bills, retailer receivables, returns and wages in one ledger, with month-end checks and a lock date.
See howPayroll for shoe factories
Monthly payroll for clickers, closers, lasters and finishers, with attendance, advances, PF and PT.
See howManufacturing
Bills of materials with scrap and cost roll-up, and work orders from plan to complete.
See how
Honest limits
What SimpleERP does not do yet
- No production stages or shop-floor tracking; a work order is planned, started and completed
- No piece-rate pay or scrap by-product in the work order
- Work orders are internal; job work sent outside is a purchase, not a work order
- No partial completion: a work order completes once, so split a big order into several lots.
- No clicking, closing and lasting stages to track on the floor.
Getting started
Start with manufacturing
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.
Add bills of materials
Build a bill of materials for one size of your best-selling article, with leather in sq ft, soles in pairs, components and labour per lot.
Complete a work order
Components leave stock, finished goods arrive at real cost, and the journal posts in the same step.
FAQ
Questions, answered
Can I track a lot through clicking, closing and lasting?
No. There are no production stages in a footwear work order: it is planned, started and completed, and stock moves only at completion. Tracking which room a lot is in stays with the supervisor for now.
Can one work order make all sizes of an article?
No. Each size is a separate product with its own BOM, so raise one work order per size. They can come from the same sales order, and each shows the leather it used and its own cost per pair.
How do I cost uppers stitched by an outside karigar?
Job work sent outside is a purchase, not a work order. Enter the karigar's bill as a purchase, and either add the closing charge to the BOM as additional cost per lot or adjust it on the work order so the pair cost includes it.
Can I make a lot of 24 pairs and finish only 20 now?
Not in one work order, because a work order completes only once. Split the lot into two work orders, one for the 20 pairs that are ready and one for the remaining 4, and each will carry its own cost per pair.
Related
Keep reading
Leather & footwear
A BOM per article, work orders per lot, leather stock in sq ft and GST invoices.
Read moreInventory for footwear makers
Finished leather in sq ft, soles in pairs, adhesive in kg and finished pairs by size, per godown at average cost.
Read morePayroll for shoe factories
Monthly payroll for clickers, closers, lasters and finishers, with attendance, advances, PF and PT.
Read more
See how manufacturing works in SimpleERP for leather and footwear
Seven days free. No card. Your first GST invoice in minutes.