Jewellery Shop ERP: Managing Stock with HUID, Purity and Weight

A jewellery shop ERP manages stock at the level of each piece: every item gets a tag with its HUID (for hallmarked gold), purity, gross weight, net weight, stone details and making charges, and the system tracks it from purchase or karigar receipt through to sale, return or melting. This is different from ordinary inventory software, which counts quantities. In jewellery, two "22K chains" are never the same item, so weight and purity must be recorded per piece and checked against the physical stock.

This guide explains what to record, how hallmarking and HUID fit in, and how to set up item-level stock so your counter, your books and your locker always agree.

Why jewellery stock is different

• Value is driven by weight and purity, not just by count. A missing 0.5 g matters.
• Every piece is unique, with its own design, weight, stones and making charge.
• Metal moves in many directions: purchases, karigar issues and receipts, repairs, old gold exchange, melting and refining.
• Rates change daily, so the sale price of the same piece changes from day to day.
• Hallmarking rules require you to sell hallmarked gold jewellery with a valid HUID in areas where hallmarking is mandatory.

Hallmarking and HUID in brief

BIS hallmarking for gold jewellery and artefacts is mandatory in the districts notified by the government, which now cover most of the country's jewellery trade. Each hallmarked piece carries three marks: the BIS logo, the purity grade (for example 22K916) and a six-character alphanumeric HUID (Hallmark Unique Identification) number. Recognised purity grades for gold include 14K, 18K, 20K, 22K, 23K and 24K.

Customers can check an HUID using the BIS CARE app, and more of them now do. That makes it important that the HUID on your tag and invoice matches the piece. There are exemptions, for example for very light items and for small jewellers below a turnover limit, and BIS has extended hallmarking to silver as well. Rules are updated from time to time, so confirm current requirements with BIS or your trade association.

What to record for every item

How stock moves through a jewellery ERP

1. Purchase and karigar receipts

• Record purchases from wholesalers with weight, purity, rate and GST.
• Issue gold or silver to karigars by fine weight, and receive finished pieces back with wastage agreed in advance.
• Keep a running metal balance for each karigar and supplier, so you always know who holds how much of your gold.

2. Tagging

• Create an item for each piece, enter weights, purity, HUID and stones, and print a tag or barcode label.
• Use weighing scale integration if possible, so weights are not typed by hand.
• Group items by counter, tray or showcase, so stock checks are quick.

3. Sale

• Scan the tag at the counter. The ERP pulls in weight, purity and making charges and applies today's rate.
• Print the invoice with HUID, purity, weights, making charges and GST shown clearly.
• The item is marked as sold and removed from stock.

4. Old gold exchange and buyback

• Record the old piece's gross weight, deductions, tested purity and the rate offered.
• Adjust its value against the new purchase on the same bill, or pay it out.
• Move the old gold to a separate stock for melting or refining, tracked by fine weight.

5. Repairs, approvals and returns

• Track customer repair items separately from your own stock.
• Record pieces sent on approval to customers or other shops, with return dates.
• Handle sales returns so the piece goes back into stock with its original details.

GST and billing basics

Gold and silver jewellery sales attract GST, and job work services such as making charges by a karigar have their own rate. Your ERP should calculate GST correctly on the metal value plus making charges, show HUID and weights on the invoice, and produce clean GST summaries for your accountant. Confirm current rates with your accountant, as GST rates were restructured in 2025 and may change again.

Stock checking that actually works

1. Count by tray or counter, not the whole shop at once.
2. Scan each tag with a barcode or RFID reader and let the system list missing or extra items.
3. Weigh a sample of pieces to catch tag or weight errors.
4. Reconcile metal stock by fine weight, including old gold and karigar balances.
5. Do a quick daily count of high-value trays and a full count monthly or quarterly.

Setup checklist

• Clean up your categories, designs and purity list before importing.
• Decide how you charge making: per gram, percentage, or fixed per piece.
• Import existing stock from Excel, then tag-check it physically.
• Enter opening balances for each karigar and supplier by fine weight.
• Set up staff logins with sensible permissions; only senior staff should edit weights or delete items.
• Set the daily rate update routine, by one person, at a fixed time.
• Test your invoice print with HUID, weights and GST before going live.

Key takeaways

• Jewellery stock must be tracked per piece, by weight and purity, not just by count.
• Record HUID, gross, stone, net and fine weight, and making charges for every item.
• Track metal given to karigars and old gold received by fine weight.
• Print HUID and weights clearly on invoices; customers can check HUIDs themselves.
• Regular tray-wise scanning keeps the counter, books and locker in agreement.

Our Jewellery ERP tracks every piece by purity, weight and HUID, with GST billing, karigar orders, old gold and barcode or RFID stock counts. For GST invoicing on its own, see OneLedger™ GST Billing. If you also run girvi, OneLedger™ Girvi & Jewellery keeps those records alongside your shop. Contact us for a demo with your own sample items.

Frequently asked questions

Does every gold item I sell need an HUID?

In districts where hallmarking is mandatory, gold jewellery and artefacts in the notified purity grades must be hallmarked with HUID before sale, subject to the exemptions BIS allows. Check the current notification and exemptions with BIS or your association.

Can I import my existing stock into a jewellery ERP?

Yes. Most systems accept an Excel import of items with weights, purity and HUIDs. Plan a physical tag check after import to catch mistakes in the old records.

Should I use barcode or RFID tags?

Barcodes are cheaper and work well for most shops. RFID makes full stock counts much faster for large inventories but costs more per tag and needs readers. Many shops start with barcodes and move to RFID later.

How does the ERP handle the daily gold rate?

You enter the day's rate once, usually per purity, and every sale and old gold valuation that day uses it automatically. The rate is saved with each bill for your records.