With every new branch, wholesale trader or manufacturer you send gold to, the number of programs and spreadsheets in the shop grows: one program for sales, another for the accounts, a spreadsheet for gold balances and a ledger for supplier debts. Then the end of every month goes on reconciling them with each other.
An ERP brings all of that into one system. This guide explains how it differs from the usual shop programs, when you need one, what it should cover in the gold trade, and how to move to it.
Point of sale, accounting software and ERP: what is the difference?
| Program | What it covers |
|---|---|
| Point of sale | Sales, invoices and the till in the branch |
| Accounting software | Entries and financial statements, once the figures are keyed in |
| ERP | Sales, purchasing, inventory, branches, treasury and accounting, in one system |
In an ERP a transaction is recorded once. Selling a piece reduces stock, adds cash to the till and creates its accounting entry, all at the same moment. There is no copying between programs, and no figures that differ from one report to another.
When does a gold shop need an ERP?
A single shop with one branch may manage with a good sales program. These signs mean the time has come:
- You have more than one branch and need to see their balances together.
- You sell wholesale alongside retail, and customers owe you both dinars and grams.
- You send gold to a manufacturer or for refining, and track what they hold by weight.
- You buy from suppliers by weight, and settle in gold or in cash.
- You have branches in more than one country, with different currencies and taxes.
- You spend the end of every month reconciling programs and spreadsheets with each other.
What should an ERP for gold shops cover?
A general ERP is not enough, because gold is managed by weight and karat. It should cover:
- Sales: retail at today's price plus making, wholesale with its cash and weight debts, and buying used gold.
- Purchasing: supplier invoices by weight and making, settled in gold or in cash.
- Inventory: a balance in grams for every karat, a barcode for every piece, and raw gold and stones kept separate.
- Branches: transfers between branches confirmed at the weight received.
- Manufacturing and refining: gold with the manufacturer tracked by weight until it returns.
- Treasury and banks: branch tills, company treasuries and bank accounts, with receipt and payment vouchers.
- Accounting: automatic entries, financial statements, and month-end and year-end closing.
- Taxes and currencies: a currency per branch, and VAT where it applies.
- Devices: a Civil ID reader, tag printers, barcode and RFID readers, and phones.
Permissions and separation of duties
The bigger the business, the more it matters that each employee knows their limits. The cashier sells, the branch manager runs the branch, and the finance officer approves valuations, expenses, write-offs and settlements. Sensitive decisions are approved by someone other than the person who created them, and every transaction carries the name of the person who made it.
If you own more than one company
Some traders own more than one company, or a company in each country. It is best for each company to keep its own books and currency, while the owner sees their figures together on one dashboard.
How to move to an ERP
Moving does not require closing the shop. Move in stages:
- Enter the company, branches, users and their permissions.
- Record the opening balances: cash and banks, customer and supplier balances in dinars and in grams, and gold balances.
- Enter the pieces with a barcode for each one, and count the branch so the software matches what is on the shelves.
- Start selling and buying from the system, and train each employee on the screens they use.
- Turn on the accounts once operations have settled, and review the first month-end close with your accountant.
How ZMZMGold covers this
ZMZMGold is an ERP for gold and jewellery shops that runs in the browser, with a separate database for every company. It covers retail and wholesale sales and used-gold purchases, purchasing and supplier settlement in gold or in cash, inventory by grams, karat, barcode and RFID, transfers between branches at the weight received, manufacturer and refining custody, treasuries and banks, a currency per branch, VAT where it applies, and Arabic and English interfaces.
The Integrated Accounting module adds the general ledger and its statements. Owners with more than one company get a group dashboard that shows their companies together, each with its own books. And to get started, setup wizards guide you through the company, branch and finance settings, with screens for the opening balances.
Details are on the gold and jewellery shop management software page, and in our articles How to choose the best gold and jewellery shop software in Kuwait and Integrated accounting software for gold shops: what it should do.
The bottom line
An ERP for a gold shop means that every transaction is recorded once, in weight, karat and dinars, and its effect shows in stock, cash and the accounts together. If you have branches, wholesale or a manufacturer, it is what saves you reconciling programs every month. Move to it in stages, with correct opening balances and a first stock count.