Contractors rarely pay for each purchase. They collect cement, pipes, fittings and paint over weeks, and settle in instalments. That makes the contractor's account the most valuable and the most argued-over page in a hardware shop. A running ledger with dated entries turns the argument into a lookup. Here is how to set one up in eKhata.
Key points
- Give every contractor a running khata with dated entries
- Record purchases and payments as they happen, including part payments
- Count stock in the unit each item is sold in
- Send a PDF statement before settling an account
One running account per contractor
Add each contractor as a customer in the parties ledger. Every bill you make for them and every payment they give goes onto the same running khata. If they already owe you, enter that as an opening balance.
When the contractor visits, you open one screen and see the whole story in date order.
Bill each collection
Whenever material leaves the shop for a contractor, make a bill against their name. Add the items, enter the quantities and, if they pay something now, enter the part payment. The bill is marked paid, partly paid or unpaid, and the due amount is added to their balance.
- Items and quantities
- Part payment taken today
- The balance still due
Count stock in the right units
A hardware store sells cement by the bag, pipes by the foot, tiles by the box and screws by the pack. eKhata supports bag, carton, foot, sheet, tile, box and piece units and lets you add your own.
The stock screen shows the current quantity and the inventory value, and a low-stock level on each product warns you before cement or pipe runs short.
Record payments the day they arrive
When the contractor pays, record it at once. A part payment reduces the balance and the khata stays accurate. Because party payments also post to the cash book, your drawer and your accounts stay together.
Send a statement to settle
Before a settlement meeting, send the contractor a PDF statement on WhatsApp. It lists what was taken and what was paid, with the exact balance. It lets them check it in their own time, and it usually shortens the discussion.
A statement is also a polite reminder when a balance has been standing for a while.