Steel trading software that bills by weight, not by guess
Steel is sold by weight at a rate that changes between the quotation and the lorry, cut to lengths that leave an offcut, and delivered at a freight cost that eats the margin nobody calculated. All four are the same problem: the invoice has to reflect what physically happened.
| Product | Tonnes | Margin | ₹ / tonne |
|---|---|---|---|
| MS Angle | 142.40 | 4,84,160.00 | 3,400.00 |
| MS Flat | 86.20 | 2,15,500.00 | 2,500.00 |
| TMT bar | 204.60 | 4,29,660.00 | 2,100.00 |
| GI Pipe | 38.10 | 1,90,500.00 | 5,000.00 |
What steel and hardware traders use it for
Weight-based billing
Sold per kilogram or per tonne, with theoretical and actual weight both recorded, because the difference between them is a real argument with a real customer.
Rates that move daily
Today’s rate against a quotation given last week, with the difference visible before the invoice goes out rather than after.
Cutting and offcuts
Cut-to-length jobs that consume a full length and return an offcut to stock, so the remnant is an asset rather than a disappearance.
Freight in the margin
Transport booked against the consignment, so margin per tonne is after delivery cost rather than before it.
Multiple units
Pieces, metres, kilograms and tonnes with conversions on the item, so a stock statement can be read in whichever one you think in.
Godowns and yards
Stock at the yard, at the shop and in transit, each held separately and each reconcilable.
How a steel trader sets it up
- Set units and conversions. Per item — kilograms to tonnes, pieces to metres, with theoretical weight per length where you use it.
- Load rates. Current rates per product, updated as they move, with quotations holding their own rate until they expire.
- Bill by actual weight. The invoice records what was weighed, not what the chart said it should be.
- Read margin per tonne. After freight and after discount. It is usually not the number people expect.
Steel trading questions
Can I bill by actual weight rather than theoretical?
Yes, and record both. The gap between the chart weight and the weighbridge is a recurring conversation with customers, and having both figures on the document ends it quickly.
How do I handle rates that change daily?
Rates are held per item and updated as they move, while a quotation keeps the rate it was given at until it expires. That way an old quotation does not silently bill at today’s price or yesterday’s.
What happens to offcuts from a cutting job?
The full length is consumed and the offcut is received back into stock as a remnant, so it stays on the books as something sellable instead of vanishing into a rounding difference.
Can I see margin after freight?
Yes. Transport is booked against the consignment rather than as a general overhead, so margin per tonne is calculated after delivery cost — which is the only version of that number worth looking at.
Related
Find your real margin per tonne
Load a month of purchases and sales free and see what freight and discounts have been doing to it.