home textile industry process

7/23/2019 Home Textile Industry Process

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TEXTILE INDUSTRY

PROCESS



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Challenges in Home textile industry

Inventory maintenance

Purchase of Materials

Tracking of RM in subcontractingprocesses

Production



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Processes involved in Production of FG

Purchase of Raw Material (Fabric RM)

Purchase of Raw Material (Yarn)

Purchase of Raw Material (Raw Cotton)

Yarn Conversion(Subcontracting)

Dispatch

Dyeing & Bleaching(Subcontracting)

Cone Winding (Subcontracting)

Folding(Inhouse)

Packing(Subcontracting / Inhouse)

Warping

(Subcontracting / Inhouse)

Weaving(Subcontracting / Inhouse)

Cutting(Subcontracting / Inhouse)

Stitching(Subcontracting / Inhouse)



Executive Summary

Materials traceability- WIP traceability for both in-house production and subcontracts

Subcon reconciliation- Material reconciliation between issues and receipt

3 Way Matching while payment- Purchase Order – Goods receipt – Supplier Inoice

!ost center based report- !ontrol oer sales order and cost

!omply with Statutory and regulatory norms Multiple currency

- "#change rate is maintained

3$% & Standard reports Gain aluable insights across your business processes' and

ensure sound and timely decisions

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Purchase Management

The Raw Materials purchased may beCotton/Yarn/Fabric which areimported based on the market availability and rates.

The purchase module is handled withmultiplecurrencies

Multiple Unit of Measure (UOM) for single item based on Purchase, Sales & Inventory Stock

Maintenance The Purchase & Sales module has multiple Taxes and Charges discounts



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Subcontracting Management

In Textile Industry, more than50% of theprocesses are subcontracted to local suppliersin and around the location

Tracking of Raw Material issued to each Supplier

with respect to Subcontracting Order and Issue

Reconciliation of the Issued material againstthe receipt of Ordered goods

RM purchased from Supplier A is supplieddirectly to Supplier B for subcontracting forsupplying SFG has also been handled

Separate Subcontract Register to track Orders,

Issue and receipt of materials.



Payable Management

The Payment of Supplier A has to be given toSupplier B can be handled

The Supplier can be treated as both Supplier as

well as Customer. The supplier purchases RM todeliver goods against the PO released to him

A common Ledger to view reports of both Supply& Sale to Supplier

A Supplier can be mapped with multiple TDS andseparate Register to track TDS based on Nature ofpayment



Payable Management

The Item based Debit notes are raised for allPurchase Returns and hence no separate Debitsnotes are required to be raised

Post Dated Checks (PDC) for Regular paymentsissued to Suppliers

PDC for Advances issued to Suppliers with onlySupplier Ledger featuring the PDC and the Bank

dynamically reflecting PDC based on processing

All the expenses can be accounted through directinvoicing



Sales and Shipping

The Export Invoices require documentations likepackslip and Invoicing which are available inSystem

Multiple methods of Sales accounting like Order-packlip-Invoice, Direct Invoicing & Direct Sales isavailable

Status Sale Orders booked, material dispatched

and pending shipment reportsare available

The local sales can be accounted in DirectInvoicing which requires no Order. The Retail saleof goods against Immediate Cash can be

accounted through Direct Sales



Receivables Management

The Bill discounting method is handled in the ARmodule. The Debit Documents are presented inthe Bank for which a contingent amount will begiven by the Bank. The payment deposited by the

Customer shall be credited against the contingentamount thus realizing the amount.

Tracking of Receivables based on due dates andcredit terms has been handled

Multiple Foreign currencies are handled withclear tracking of exchange rate fluctuation



Inventory Management

Stock valuation methods like FIFO, Actualcosting, Standard & Moving Average are available

WIP at each stage is traceable.

Issue, Receipt and Return of materials withproper reference documents.

Proper Gate Entry/ Exit System to track material

movements within organization. Stock Movement Reports to track items by eachtype of transaction



Inventory Management

Maintenance of other Stocks like consumables,Packing materials etc

Multi-Warehouse and Multi Locations supported

Online stock status and valuation

A separate process of stock taking (PhysicalInventory) can be accounted in the system

Supplier warehouse can be created to trackmaterials with Supplier



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Management Accounting

Tracking of Expenses and Income based onlocations and processes

Multiple level of Cost Centres

Profitability statements for the Cost Centres



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Production Management

Each stage wise productions can be handled

Material Issue and receipt based on work orders

Consumption reporting for each work orders based on Issue and Receipt of Production

Each Resource wise tracking and reporting ofproduction

Detailed activity chart like start and end ofproduction runs, problems and batch activity etcfor each Resource.



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Management Information System

Module wise reports

• Excel format

• Pdf formats

Financial Statement

Balance Sheet in USGAAP & Schedule VI

Trial Balance

P&L statement

Profitability reports

All reports with high volume of data are directly loaded inExcel format

Currently there are 310 standard reports available in the

system



Thank You