Fabrication
Inventory software for fabrication shops and steel yards
Sections and plate in kilograms, pipe in running metres, consumables in their own store and offcuts in a scrap bay, each valued at the steel stockholder's bills on a weighted average.
In short
SimpleERP is inventory software for fabrication shops. A structural fabricator keeps UB beams, PFC channels, steel plate and pipe in kg or running metres, valued at weighted average cost, and steel moves only when a bill, work order or invoice posts.
Illustration of stock on hand by warehouse at average cost, with a low-stock row highlighted and a movement ledger.
A stock day at Don Valley Fabrications
The steel yard at Don Valley Fabrications is a mix of full lengths and leftovers. UB beams and PFC channels lie in 12 metre lengths, steel plate in 6, 8 and 10 mm sheets, steel pipe in 6 metre lengths, and against the wall a growing heap of offcuts nobody has weighed. Welding rod, MIG wire, cutting wheels, primer and gas cylinders sit in a locked store.
The steel stockholder bills by weight, the yard counts by length, and the estimate was made in kilograms. When a shed needs 640 kg of PFC 100 the storekeeper has to judge whether the lengths on the rack are enough, and the answer changes once the plasma cutter has been at them.
SimpleERP keeps one unit per product and sticks to it. Pick kg for plate and sections because the bill, the quotation and the BOM all speak in kg, or running metre for pipe if that is how you buy it. Bills bring steel in at the stockholder's price, work orders draw it down, and the yard's value is always at weighted average cost.
Which units and reorder levels suit a fabrication yard?
Sections are bought per job, so only the sizes used every week need a reorder level. Consumables are where the shop actually runs out.
- One unit per product, kept the same on bills, BOMs and invoices
- Reorder level per size; the low stock list shows what is under it and you decide the order
- Purchase order to the steel stockholder straight from that list
| Family | Unit | Kept in | Reorder pattern |
|---|---|---|---|
| UB beams and PFC channels | kg | Steel yard | Per job; a level only on the two sizes used weekly |
| steel plate 6, 8 and 10 mm | kg | Steel yard | A level per thickness |
| steel pipe | running metre | Steel yard | Bought by the length, counted in metres |
| Welding rod and MIG wire | kg | Consumables store | Two weeks of welding |
| Cutting and grinding wheels | pcs | Consumables store | By the box |
| steel scrap and offcuts | kg | Scrap bay | Sold to the scrap dealer; never reordered |
How do offcuts stay in the books?
Expected offcut is a scrap percent on each section in the BOM, so it is already in the job's cost. Usable leftovers stay on the product they came from. What goes to the scrap bay is weighed at month end and added to a steel scrap product, which the scrap dealer's invoice then takes out.
- Steel scrap as its own product, sold on an invoice at its own tax rate
- Count-mode adjustment with the reason, so the scrap entry is explained
Where is the steel that went to the erection site?
Create a warehouse for the site, say Rotherham shed site, and move the bolts, purlins and sheeting there with a transfer when the truck leaves. The yard count drops, the site count rises, and whatever comes back after erection returns on another transfer.
- Stock by warehouse, so the yard and each site have their own count
- Transfers as posted documents, each with a date and the person who made it
Illustration of a profit and loss statement for Jan–Jun 2026 with net profit of 4,691, a tax summary and the lock date.
What is the steel yard worth today?
On 30 September the yard held 14,200 kg of sections and plate at an average of $1.10 per kg, so $15,620 of steel, plus consumables and finished frames at their own averages. That figure comes from the movement ledger and matches the inventory balance in the books.
- Average moves with each steel stockholder's bill, at the rate actually paid
- CSV export of the valuation for the bank's stock statement
One system
What moves the steel
Bills from the steel stockholder fill the yard, work orders draw it down, transfers send it to sites, and invoices take finished work out.
Engineering and fabrication
Quotations to invoices, BOMs and work orders per job, and steel stock in kg and metres.
See howInvoicing & tax
Tax invoices with VAT, GST or sales tax on every line, numbered by fiscal year and posted in one step.
See howAccounting for fabricators
Steel bills, stage payments, gas and crane hire in one double-entry ledger, with margin per job and a monthly close for a fabrication unit.
See howPayroll for engineering workshops
Welders, fitters and site teams paid from attendance, with site allowance, agreed overtime and advances on the payslip.
See howProduction for fabricators
Shop drawings as BOMs with offcut allowance, work orders that draw steel from the yard, and the actual cost of every fabricated frame.
See howInventory
Stock on hand by warehouse at weighted average cost, with a movement ledger and a low-stock list.
See how
Honest limits
What SimpleERP does not do yet
- No batch, lot, serial or expiry tracking, and no barcode scanning
- Weighted average cost only; there is no FIFO
- No automatic reorder suggestions: the reorder level shows what is low, you decide what to buy
- Lengths and cut pieces are not tracked separately; a beam size is one product counted in kg or metres
- Steel sent for galvanising moves on a transfer; there is no job-work dispatch note
Getting started
Start with inventory
Sign up with your email
Name, email and a password. No card for the seven-day trial.
Tell us about the business
Pick your country and, if you are registered, type your tax number. Accounts, tax rates, units, roles and numbering are seeded for that country.
Add products and opening stock
Import beams, channels, plate, pipe and consumables from a CSV file with kg or running metre as the unit and opening stock per warehouse.
Post a bill and an invoice
Stock rises on the purchase bill and falls on the invoice, at weighted average cost, with nothing to count by hand.
FAQ
Questions, answered
Should I keep beams in kg or in lengths?
In kg, if your steel stockholder bills by weight and you quote by weight, which most shops do. Then the bill, the BOM and the invoice all speak the same unit. Pipe bought by the length can sit in running metres instead; pick one unit per product and keep it.
Can I see steel that has gone to a site for erection?
Yes, by making each site a warehouse. A transfer moves bolts, purlins and sheeting from the yard to the site, so both counts are right, and a second transfer brings back what was left over once the shed is up.
How do I handle scrap sold to the scrap dealer?
Keep steel scrap as a product in kg. Weigh the scrap bay at month end and post a count adjustment to bring it in, then raise an invoice to the scrap dealer for what he lifts. Ask your accountant which tax rate to set on it.
Can I see which job used which steel?
Each completed work order records the beams, channels and plate it consumed, with quantities and cost, and the movement ledger links every issue back to that work order. There is no separate job ledger, so name the finished product or work order after the job.
Related
Keep reading
Engineering and fabrication
Quotations to invoices, BOMs and work orders per job, and steel stock in kg and metres.
Read moreProduction for fabricators
Shop drawings as BOMs with offcut allowance, work orders that draw steel from the yard, and the actual cost of every fabricated frame.
Read moreInvoicing & tax
Tax invoices with VAT, GST or sales tax on every line, numbered by fiscal year and posted in one step.
Read more
See how inventory works in SimpleERP for engineering and fabrication
Seven days free. No card. Your first invoice in minutes.