Jewellery management and billing software
Karigar accounts: how jewellers avoid metal and wastage disputes
How jewellers can track gold issued to karigars, finished pieces received, allowed wastage and labour charges, so balances are clear and disputes are rare.
For many jewellers, the karigar relationship is built on years of trust. But even with trust, gold issued for a job and jewellery received back rarely match exactly. Some metal is lost in manufacturing, some pieces are returned for repair, and labour is charged in different ways. Over months, small differences turn into a balance nobody is quite sure about.
Clear karigar accounts protect both sides. This guide explains what to record, how to handle wastage, and how to keep balances clean.
Why disputes happen
Most karigar disputes come from the same few causes:
- Metal issued is recorded by gross weight, but received back by net weight, or the other way round.
- The purity of metal issued and received is not recorded, so fine gold cannot be compared.
- The allowed wastage was agreed verbally and remembered differently.
- Repairs and part-returns are mixed in with new orders.
- Labour charges are settled separately from metal, so neither balance is ever complete.
The fix is simple in principle: record every movement the same way, in terms both sides agree on.
Think in fine gold
The clearest way to track karigar balances is in fine gold, that is, pure gold equivalent. For any metal, fine gold is:
Fine gold = weight × purity
For example, 100 g of 22K (91.6%) gold contains 91.6 g of fine gold. When metal of different purities goes out and comes back, converting everything to fine gold lets you compare like with like.
What to record when issuing metal
For each issue, record:
- Karigar name and job or order number
- Date
- Metal issued: weight, purity and fine gold
- What is to be made: design, quantity and expected weight
- Agreed wastage allowance for this job
- Agreed labour rate: per gram, per piece or fixed
- Expected delivery date
A printed or shared issue slip, acknowledged by the karigar, avoids later arguments about what was given.
What to record when receiving jewellery
For each receipt, record:
- Pieces received against the job
- Gross weight, stone weight and net weight of each piece
- Purity, and fine gold received
- Any unused metal or scrap returned
- Pieces sent back for correction
Handling wastage
Some metal is lost during melting, casting, filing and polishing. This is normal, and it is usually agreed as an allowance, often a percentage of the metal, varying with the type of work. Handmade and intricate work typically carries a higher allowance than simple or machine work.
Once the job is received:
Fine gold balance = fine gold issued − fine gold received (in jewellery and returned metal) − allowed wastage
If the balance is zero or close to it, the job is settled. If it is positive, the karigar still holds metal. If it is negative, the karigar has used less than allowed, and your terms decide whether that is credited.
A worked example
| Step | Detail | Fine gold |
|---|---|---|
| Issued | 100.000 g of 22K (91.6%) | 91.600 g |
| Received in jewellery | 94.000 g net of 22K | 86.104 g |
| Unused metal returned | 2.000 g of 22K | 1.832 g |
| Allowed wastage | 4% of fine gold issued | 3.664 g |
| Balance with karigar | 91.600 − 86.104 − 1.832 − 3.664 | 0.000 g |
In this example the job is exactly settled. In real life there will usually be a small difference, which the ledger carries forward or settles.
Keep labour charges in the same ledger
Labour is often settled in cash while metal is tracked separately, which makes it hard to see the full picture. Keeping a single karigar ledger with two running balances, metal (in fine gold) and labour (in rupees), shows both sides of the relationship at any time.
Five habits that prevent disputes
- Agree wastage and labour terms per job, in writing, before issuing metal.
- Always record purity alongside weight, and compare in fine gold.
- Weigh on a calibrated scale, and let the karigar see the reading.
- Keep repairs as separate jobs, not mixed with new orders.
- Share a statement with each karigar every month, and settle differences while they are small.
Where Code GOLD fits
Code GOLD keeps karigar accounts as part of your jewellery management. Metal issue and receipt are recorded with weight and purity, allowed wastage is applied per job, and each karigar has a running ledger of fine gold and labour, with printable issue slips and statements. The same system handles tagging, showroom stock, billing at the day's rate, old gold and schemes.
To see a karigar ledger with your own terms, book a free demo.
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