Warehouse Management

Inventory Software for Steel Stockholders: Cuts and Offcuts

By P-Soft Expert Team 9 min read
Inventory Software for Steel Stockholders: Cuts and Offcuts — Barsavosh Fanavaran guide

Inventory software for steel stockholders has to work in lengths and weights, not just unit counts, because a single sheet or bar is cut several times and sold a piece at a time. The steel and iron mode of Avadar Industry handles exactly that: partial cuts from one barcode, length and weight entered instead of quantity, and pricing per metre, per kilogram or per piece. It is available only on the Elite plan of the Industry edition.

Anyone who has worked a shift in a steel yard knows how quickly the stock book drifts away from the racks. In the morning there is a full length of box section on the rack; by lunchtime two pieces have been cut for two customers; by evening nobody can say which bar the short offcut in the corner came from. This guide is written from the yard floor rather than the brochure: the decisions to make before you touch any software, how a cut is recorded in practice, what to do with remnants, and how counting a metals warehouse differs from counting boxes.

Why does generic inventory software struggle in a steel yard?

Most stock control systems rest on one assumption: an item is a unit that comes in whole and goes out whole. That holds for cartons of oil or boxes of fasteners, but in metals distribution it fails in three places:

  • Length. Profiles, tube and rebar are often sold cut to length. If the system only understands “one bar”, stock is wrong after the first cut.
  • Weight. Mills and importers usually sell by weight, while your customers may buy by the metre or by the full length. Converting units in your head at the counter is a constant source of mismatches.
  • Remnants. The pieces left after cutting have value, but without an identity they are neither sold nor visible in stock.

The usual workarounds have their own costs. Some yards create a new item code for every cut and end up, a few months later, with hundreds of meaningless codes. Others issue the whole bar and receive the remainder back in, which takes time and breaks the history of that piece. Either way, the stock report can no longer answer a simple question such as “how many kilos of 3 mm sheet do we have?”

Before choosing software: decide the unit for each product group

The most important set-up decision for steel inventory software is commercial, not technical. For each product group you need to decide which unit you measure stock in and which unit you sell in. Avadar’s steel and iron mode supports all three pricing methods (per metre, per kilogram, per piece), but choosing the right one for each group is up to you. The table below is a hypothetical pattern to adapt to the way you sell:

Product group (hypothetical) Stock recorded by Typical pricing Practical note
Hot-rolled and galvanised sheet Weight Per kilogram Enter the weight of each cut at issue
Rebar Weight or length Per kilogram or per bar If you also sell full bars, keep one consistent rule
Box section and profiles Length Per metre The cut length is what reduces stock
Billet Weight Per kilogram Partial cuts come off the same barcode
Finished parts (flanges, fittings) Count Per piece Treat them like ordinary stock items

A useful rule of thumb: anything that gets cut at the counter should be recorded by length or weight; anything that only ever leaves whole can be counted. Make this decision once and write it down for every salesperson.

Recording partial cuts of bar and sheet, step by step

With steel and iron mode switched on, every bar or sheet has a single barcode, and each cut is subtracted from it. A typical day at a hypothetical stockholder could run like this:

  1. Goods in. Sheets or bars are labelled with a barcode or QR code as they are unloaded and booked in with their weight or length. If you record each delivery as a batch, you can later tell which load every piece came from.
  2. Customer order. A customer asks, for example, for three metres of a profile or a specific piece of a sheet.
  3. Scan before cutting. The yard operator reads the label of that bar or sheet with a phone or a scanner, so it is clear which item the cut comes from.
  4. Enter the amount. The length or weight of the cut piece is entered, and the price follows the method set for that group: per metre, per kilogram or per piece.
  5. Issue and signature. The issue document is created, the recipient signs the delivery note, and the remainder stays in stock under the same identifier.

Step three is the one that matters most. If operators cut from whichever bar is nearest without scanning, total stock may still look right, but the history of individual items gets scrambled and the next stocktake shows discrepancies.

Offcuts and remnants: short pieces are still money

Most steel yards have a corner where short pieces pile up. Many of them are perfectly saleable to a customer who needs half a metre, as long as someone knows what is there and how much. A few habits help:

  • Keep the label with the remainder. In Avadar the remainder of a cut keeps the identifier of the original item. If the label went out on the piece the customer took, reprint the label for that same item from the ready-made templates and stick it on what is left. See our barcode label printing guide for details.
  • Give remnants a home. Set up a separate zone in the warehouse and move short pieces there with a recorded transfer, so they show up in that zone’s stock report.
  • Check remnants before cutting a new length. A quick search by item name shows whether a piece of sufficient length is already in stock.
  • Write off true scrap. A piece that can no longer be sold should leave stock on a document, so weight-based stock keeps matching reality.

Stocktaking a sheet and rebar warehouse

Counting a metals warehouse is different from counting packaged goods, because you have to measure length or weight rather than just count items. Instead of one large annual count, it usually works better to count one zone or one product group at a time: scan each item’s label, look at the quantity the system holds and compare it with what you measure. Differences typically trace back to unrecorded cuts or unlabelled remnants. Our stocktaking guide explains cycle counting methods in more detail.

Is Avadar steel trading accounting software?

Many people search for “steel trading accounting software” when their real headache is stock: they do not know how much sheet and rebar they hold or how much of it has been cut. Avadar is inventory software, not an accounting package. Its job is accurate stock, cuts, weight- and length-based pricing, movement reports and stock cards. Your ledgers, cheques and bank accounts stay in your accounting system.

If an export to accounting software matters to you, note that this feature belongs to the Avadar Trade edition, with exports suited to common accounting packages and a configurable chart of accounts. Which edition and plan fits your business is best settled with the P-Soft team during a demo. The export itself is described in exporting warehouse data to accounting software. Persian-language Excel export is included in every plan.

Which Avadar plan includes the steel inventory features?

Avadar Industry feature Start Pro Elite
Barcode and QR receipt and issue, label printing, stocktaking by scan, stock cards ✓ ✓ ✓
Batches and delivery traceability, production and projects — ✓ ✓
Partial cutting of bar and sheet, quantities by length or weight, three pricing methods (steel and iron mode) — — ✓

If partial cutting is essential, look at the Elite plan, whose support package also covers moving your existing records over from Excel or a legacy system, as defined in the contract. You can run it in P-Soft’s hosted environment or install it on a server inside your company, which also works with no internet connection. For the full product overview, see Avadar steel warehouse software.

Frequently Asked Questions

How is steel inventory software different from ordinary stock software?

It measures stock by length and weight, deducts a partial cut of a bar or sheet from the same barcode and prices per metre, per kilogram or per piece.

What happens to the remainder after a cut?

It stays in stock under the identifier of the original item. If the label left with the piece that was sold, you can reprint the label for that item.

Which plan includes steel and iron mode?

Only the Elite plan of the Avadar Industry edition.

Does Avadar handle the accounting for a steel trader?

No, Avadar is inventory software. Export to common accounting packages belongs to the Trade edition, and Excel export is included in every plan.

Can I try the cutting workflow before buying?

Yes. Before you commit, P-Soft can set up a trial demo so you can watch a cut being booked.

Want to see a sheet or bar cut recorded with your own items? Ask for a steel-mode demo and we will set up a walkthrough at a time that suits you.

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P-Soft (Barsavosh Fanavaran) Expert Team

This article was written and reviewed by the enterprise-software specialists at Barsavosh Fanavaran (P-Soft) — makers of products such as Hamkhoneh, Avadar, Nooradio and Hamahang.

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