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# Making charges and wastage

> Every making charge (MC) type and wastage type in EasyJewel, and exactly how each one is worked out on the bill.

This page shows every making charge (MC) type and wastage type, and how EasyJewel works out each one on a bill.

## Why it matters

* Wastage and MC are a big part of every jewellery bill. The customer will ask how they were worked out.
* Picking the right type gives the same price every time, at every counter.
* When you know the rule, you can check a bill in a few seconds.

## Key features

* **5 MC types**: Fixed Amt, Per Gram, Percentage, Per Piece, Mixed (Gram + %)
* **Wastage types**: Percentage, Fixed (Fixed Weight) and Per Piece. Which ones you see depends on the screen
* **Wastage calc by**: Pure, Gross or Net weight
* **MC calc by**: Metal Amount, or Metal + Wastage, for Percentage and Mixed MC
* **GST**: Charged on the full line, including wastage and MC

## Before you start

* Enter today's rate in [Daily metal rate](../stock/daily-metal-rate).
* All examples below use the demo rate **Gold 22K ₹7,000 per gram** and a **22K chain: gross 8.400 g, net 8.250 g, 1 piece**.

## How the line is built

#### Metal amount

**Net weight × Rate.** Net weight = gross weight − stone and less weight. 8.250 g × ₹7,000 = **₹57,750.00**.

#### Wastage

Wastage is worked out as a **weight in grams** first. Then **Wastage amount = Wastage weight × Rate**. The wastage weight is never added to the net weight.

#### Making charge

Worked out by the MC type (see the table below).

#### Before discount

Metal amount + Wastage amount + MC (+ stone, diamond and other charges, if any).

#### Taxable and GST

Taxable = Before discount − Discount. GST is charged on the taxable amount. Within Tamil Nadu, 3% GST is split as CGST 1.5% + SGST 1.5%.

## Wastage types

Wastage adds **weight** to the line. That weight is then charged at the same rate as the metal.

| Type                 | How it's calculated                                 | Example (8.250 g net chain, ₹7,000/g)                                     | When to use                                    |
| -------------------- | --------------------------------------------------- | ------------------------------------------------------------------------- | ---------------------------------------------- |
| Percentage           | Wastage weight = Chosen weight × Wastage % ÷ 100    | 10% on net weight: 8.250 × 10% = 0.825 g → 0.825 × ₹7,000 = **₹5,775.00** | Most gold ornaments                            |
| Fixed / Fixed Weight | Wastage weight = the grams you type                 | 0.500 g → 0.500 × ₹7,000 = **₹3,500.00**                                  | A set wastage for a piece, whatever its weight |
| Per Piece            | Wastage weight = grams per piece × number of pieces | 0.300 g × 1 piece = 0.300 g → **₹2,100.00**                               | Pairs and sets, for example studs or bangles   |

### Wastage types by screen

| Screen                                     | Wastage types you can pick          |
| ------------------------------------------ | ----------------------------------- |
| Tag, Estimation, Sales Return              | Percentage, Fixed                   |
| Sales, Purchase, Purchase Return, vouchers | Percentage, Fixed Weight, Per Piece |
| Sales Orders, Lot                          | Percentage, Fixed, Per Piece        |

"Fixed" and "Fixed Weight" are the same thing: a weight in grams.

A **Lot** only stores the default MC and wastage settings for the tags made from it. It does not work out any amounts. A **Sales Order** keeps the line values as they were entered.

### What "calculated on" changes (Percentage wastage only)

**Wst Calc By** decides which weight the wastage % is taken on. It starts at **Net Weight**.

| Calculated on | Weight used             | 10% wastage | Wastage amount |
| ------------- | ----------------------- | ----------- | -------------- |
| Net Weight    | 8.250 g                 | 0.825 g     | ₹5,775.00      |
| Pure Weight   | 8.250 × 91.6% = 7.557 g | 0.7557 g    | ₹5,289.90      |
| Gross Weight  | 8.400 g                 | 0.840 g     | ₹5,880.00      |

Fixed and Per Piece wastage don't use this setting. The grams you type are used as they are.

## Making charge types

| Type             | How it's calculated                                         | Example (8.250 g net chain, ₹7,000/g)                                    | When to use                                       |
| ---------------- | ----------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------- |
| Fixed Amt        | MC = the rupee amount you type                              | ₹1,500 → **₹1,500.00**                                                   | Light pieces, or a price agreed with the customer |
| Per Gram         | MC = ₹ per gram × **net weight**                            | ₹400 × 8.250 g = **₹3,300.00**                                           | Most common for gold                              |
| Percentage       | MC = MC % × base amount ÷ 100                               | 12% of metal ₹57,750 = **₹6,930.00**                                     | When MC is quoted as a %                          |
| Per Piece        | MC = ₹ per piece × number of pieces                         | ₹1,500 × 1 = **₹1,500.00**                                               | Silver articles, pairs, fancy items               |
| Mixed (Gram + %) | MC = (₹ per gram × net weight) + (MC % × base amount ÷ 100) | ₹200 × 8.250 = ₹1,650.00, plus 5% of ₹57,750 = ₹2,887.50 → **₹4,537.50** | When you charge a per-gram MC plus a %            |

### MC Calc By (Percentage and Mixed MC only)

The **base amount** for the % part is set by **MC Calc By**:

| MC Calc By                 | Base amount                                                 | 12% MC on our chain |
| -------------------------- | ----------------------------------------------------------- | ------------------- |
| Metal Amount (the default) | Metal amount only: ₹57,750.00                               | ₹6,930.00           |
| Metal + Wastage            | Metal + wastage (10% on net): ₹57,750 + ₹5,775 = ₹63,525.00 | ₹7,623.00           |

Per Gram MC and the per-gram part of Mixed MC always use the **net weight**.

## Full bill example

22K chain, gross 8.400 g, net 8.250 g, rate ₹7,000/g, wastage 10% on net weight, MC ₹400 per gram, no discount, 3% GST, customer in Tamil Nadu.

| Line               | Working                        | Amount         |
| ------------------ | ------------------------------ | -------------- |
| Metal amount       | 8.250 g × ₹7,000               | ₹57,750.00     |
| Wastage            | 8.250 × 10% = 0.825 g × ₹7,000 | ₹5,775.00      |
| Making charge      | ₹400 × 8.250 g                 | ₹3,300.00      |
| **Taxable amount** | 57,750 + 5,775 + 3,300         | **₹66,825.00** |
| CGST 1.5%          | 66,825 × 1.5%                  | ₹1,002.38      |
| SGST 1.5%          | 66,825 × 1.5%                  | ₹1,002.38      |
| **Net total**      | 66,825 + 1,002.38 + 1,002.38   | **₹68,829.76** |

Round off is not automatic on a sales bill. It starts at ₹0. To bill ₹68,829, the cashier types **−0.76** in Round Off. The same applies to Sales Orders. Only Purchase and Purchase Return bills round off by themselves.

> **Note**
>
> GST is charged on the full taxable amount, and that includes wastage and making charge.

### CGST + SGST or IGST?

* **CGST + SGST**: when the place of supply is in the shop's own GST state. Counter sales always use the shop's state, so they get CGST + SGST.
* **IGST**: when the place of supply is in a different state from the shop's GST state.
* You can change the GST type on the bill by hand if needed.

| Same ₹66,825 line     | Tax                               | Net total  |
| --------------------- | --------------------------------- | ---------- |
| CGST 1.5% + SGST 1.5% | ₹1,002.38 + ₹1,002.38 = ₹2,004.76 | ₹68,829.76 |
| IGST 3%               | ₹2,004.75                         | ₹68,829.75 |

IGST comes to 1 paisa less because CGST and SGST are each rounded to the paisa separately.

## Tips

> **Tip**
>
> If a customer asks why the bill is high, show them the wastage weight in grams. It is easier to understand than a percentage.

> **Warning**
>
> Wastage on **Pure Weight** gives a smaller wastage than on Net Weight for the same %. Agree on one method in your shop and use it every time.

## Frequently asked questions

#### Percentage MC is a percentage of what?

Of the metal amount (weight × rate). If **MC Calc By** is **Metal + Wastage**, it is a percentage of the metal amount plus the wastage amount.

#### What does Mixed MC mean?

A per-gram MC and a percentage MC added together. For example ₹200 per gram plus 5% of the metal amount. The % part uses the same base as Percentage MC (set by MC Calc By).

#### Does wastage add weight or money?

Weight. EasyJewel first works out the wastage in grams, then charges it at the item's rate.

#### Is GST charged on making charges?

Yes. GST is charged on the whole line, which includes the metal, wastage and making charge, less any discount.

#### Does the bill round off by itself?

Not on Sales or Sales Order. Round off starts at ₹0 and the cashier types the amount, for example −0.76. Purchase and Purchase Return bills round off automatically.

#### When is IGST charged instead of CGST + SGST?

When the place of supply is in a different state from your shop's GST state. Counter sales use your shop's state, so they get CGST + SGST. You can change the GST type by hand.

#### Is Fixed the same as Fixed Weight?

Yes. Both mean a wastage weight in grams that you type.

#### Which weight does Per Gram MC use?

Always the net weight.

#### Does Wst Calc By change Fixed wastage?

No. It only changes Percentage wastage.

## Related pages

#### [Sales bill](../daily-counter/sales-bill)

Where wastage and MC appear

#### [Tags](../stock/tags)

Save wastage and MC on a piece

#### [Purchase](../daily-counter/purchase-bill)

Supplier wastage and MC

#### [Settings](../settings/settings)

Shop and billing settings