Textiles & garments
Accounting software for textile and garment businesses
Yarn on 30 days, dyeing on 45, buyers paying in 90: the cash gap lives in the ledger. Let every bill and invoice post itself and spend the month end on the gap.
In short
SimpleERP is accounting software for textile and garment businesses in India. Yarn and dyeing bills, buyer invoices, receipts, payroll and machine depreciation post their own journals, so ageing, trial balance and P&L are current every day.
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.
An accounting day at Noyyal Knit Fashions
The owner of Noyyal Knit Fashions knows his order book by heart and his cash position by guesswork. Cotton yarn mills want payment in 30 days, the dyeing unit in 45, and the Chennai brand pays in 90 after it has checked the shipment.
His accountant spends the first week of each month entering yarn bills, knitted fabric dyeing and compacting bills, invoices for T-shirts and polos, and the salary sheet into the books, and only then can anyone see whether the season made money. By then the next season's yarn is already bought.
In SimpleERP the documents write the books as they are posted. The yarn bill raises stock and the mill's balance, the invoice raises the sale and the buyer's balance, and payroll posts wages. The accountant's week becomes a morning of checks.
What accounts does a garment unit need beyond the seeded ones?
The seeded chart has stock, sales, purchases, GST, wages and overhead. Garment units usually add an account for dyeing and compacting charges, another for embroidery or printing done outside, and one for each class of machine they own.
- Buyer and supplier balances are derived from documents, never typed.
- Knitting and stitching machines sit in the asset register with depreciation posted to the books.
- Loan repayments on machinery go in as manual journals, the few that no document covers.
| Account | What posts to it | Month-end check |
|---|---|---|
| Sales: garments | Invoices to brands and wholesalers | Agrees with the sales register |
| Sales: fabric and seconds | Surplus fabric by kg, seconds in lots | Separate line in the P&L |
| Inventory | Yarn and trims in, work orders and invoices out | Matches stock value by godown |
| Dyeing and compacting charges | Dyer and compactor bills | Every bill matched to the kg of fabric returned |
| Input GST | Yarn, trims, polybags and job-work bills | Checked against GSTR-2B |
| Sundry debtors | Buyer invoices less receipts and credit notes | Ageing reviewed for 60 and 90 day buyers |
| Wages and PF payable | Approved payroll runs | Payable cleared after salary and PF are paid |
| Bank | Buyer receipts, mill payments, salaries | Matched line by line to the bank statement, by hand |
How do I see the gap between paying the mill and getting paid?
Receivables ageing shows each buyer's open balance by age, and payables ageing shows what the mills and dyers are due this week. Read the two together on a Monday and you know how much the business is funding before the buyer pays.
- Copy reminder writes a message with invoice numbers and days overdue for the buyer.
- Receipts are allocated to specific invoices, so part payments are clear.
- Supplier payments clear the bills you choose, oldest first or as agreed.
Illustration of receivables ageing: ₹2,14,800 to collect across 5 buckets, with customer totals.
What does a clean month end look like?
Work through the checks in the table, read the trial balance and the P&L, then set the lock date. Nothing posted before that date can change afterwards, and reopening the month needs an approval that stays in the log.
- The database refuses a journal whose debits and credits differ.
- Cancelled documents are reversed, so the CA sees both the entry and its undoing.
- CSV export of every report for a CA who prefers his own package.
One system
Where the books connect
Purchases, sales, work orders and payroll all post to one ledger, so every report reads from the same entries.
Textiles & garments
Fabric to garment bills of materials, stock by warehouse, HSN-coded GST invoices and payroll.
See howGST billing for garment units
Garments by size, surplus fabric by the kilo and stitching job work, each with its own HSN or SAC and rate.
See howInventory for garment units
Yarn and knitted fabric in kg, trims in pieces and garments by size, per godown and at average cost.
See howPayroll for garment units
Monthly payroll for tailors, checkers and packers, with attendance by shift, advances, PF and ESI as a component.
See howManufacturing for garment units
A bill of materials per style and size, and work orders that turn knitted fabric into finished pieces at real cost.
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 export incentive or duty drawback accounting: billing is domestic and in rupees.
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 opening balances for the bank, machinery loans, each knitting and stitching machine, and what every buyer, mill and dyer owes on the start date.
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
Can I see profit on garments separately from fabric sales?
Yes, if you keep separate sales accounts for garments and for surplus fabric and seconds. The P&L shows each one, and the cost of goods sold follows the products sold, so each stream shows its own margin.
How are the dyeing unit's charges recorded?
Enter the dyer's bill as a purchase against an expense account for dyeing and compacting, or as additional cost on the work order if you want it in the garment cost. Both post the input GST and the payable to the dyer in the same step.
My buyers deduct for short shipments. How do I record that?
Raise a credit note against the invoice for the shortage or the agreed claim. It reduces the buyer's balance and the output GST, and the receipt that follows is matched to the reduced amount, so the ageing stays right.
Can my CA work in his own software?
Yes. Hand him the trial balance, the sales and purchase registers and the HSN summary as CSV or A4 prints each month. Many units keep the CA on his own package and give him reports instead of a box of bills.
Related
Keep reading
Textiles & garments
Fabric to garment bills of materials, stock by warehouse, HSN-coded GST invoices and payroll.
Read moreGST billing for garment units
Garments by size, surplus fabric by the kilo and stitching job work, each with its own HSN or SAC and rate.
Read morePayroll for garment units
Monthly payroll for tailors, checkers and packers, with attendance by shift, advances, PF and ESI as a component.
Read more
See how accounting works in SimpleERP for textiles and garments
Seven days free. No card. Your first GST invoice in minutes.