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A printing business can receive hundreds of orders every month and still struggle to understand which jobs are actually profitable. Rising paper prices, changing packaging requirements, machine downtime, wastage and urgent customer deadlines make the printing and packaging industry particularly challenging.
In 2026, Indian printing and packaging units face increasing pressure to deliver customized products faster while maintaining quality and controlling production costs. Customers expect accurate quotations, timely delivery and competitive pricing. Meanwhile, business owners must manage raw materials, labour, machinery, GST invoices and outstanding payments.
Traditional spreadsheets and handwritten job registers often fail to provide complete visibility across these activities.
A customer may order 50,000 printed cartons, but the business must determine how much board, ink, coating, adhesive and labour will be required. If material wastage increases or machine time exceeds the estimate, a seemingly profitable order may become a loss.
This is where an integrated Enterprise Resource Planning (ERP) approach becomes valuable.
ERP software connects important business activities such as order management, purchasing, inventory, production planning, accounting and reporting.
TallyPrime provides strong capabilities for accounting, inventory, job costing, manufacturing-related records and financial analysis. Depending on operational complexity, printing and packaging businesses may combine these capabilities with specialized production management solutions.
This guide explains how to select suitable ERP software, calculate printing job costs, track customer orders and use TallyPrime to improve operational control and profitability.
ERP software is a business management system designed to integrate information across different departments.
For printing and packaging businesses, an ERP solution may connect customer quotations, sales orders, raw material purchases, production planning, machine operations, finished goods inventory, dispatch and accounting.
Consider a packaging manufacturer receiving an order for 20,000 corrugated boxes.
The business must confirm specifications, estimate material requirements, purchase board, schedule production, monitor wastage and dispatch the completed order.
Without connected records, employees may repeatedly enter the same information into different systems.
This increases the possibility of errors and delays.
An appropriate ERP system provides a more organized workflow, helping management review order status, material availability and financial performance.
However, not every accounting application includes all the specialized production functions of a printing ERP.
Businesses should distinguish between core accounting and inventory capabilities and advanced shop-floor automation before selecting software.
Paper, duplex board, kraft paper, inks, films and adhesives may experience price fluctuations.
A quotation prepared using outdated costs can reduce profit margins.
Printing businesses frequently handle different sizes, designs, colours, finishes and quantities.
Each order may require different materials and production processes.
Paper trimming, setup sheets, rejected prints and packaging damage contribute to production costs.
Idle machines, maintenance delays and inefficient scheduling affect delivery timelines.
Businesses may know their total monthly profit but struggle to identify whether individual jobs were profitable.
Large orders often involve credit periods, making receivable tracking essential.
Sales, production, inventory and accounts may maintain separate records, causing communication gaps.
ERP-based workflows can help address these problems when implemented with accurate data and clear responsibilities.
A suitable ERP solution should support the complete order lifecycle.
|
Feature |
Business benefit |
|---|---|
|
Customer order tracking |
Monitor confirmed orders and delivery commitments |
|
Job costing |
Compare estimated and actual costs |
|
Raw material inventory |
Track paper, board, ink and packaging materials |
|
Bill of Materials |
Define standard material requirements |
|
Production records |
Record manufacturing and consumption |
|
Purchase management |
Monitor supplier purchases |
|
Finished goods inventory |
Track completed products |
|
GST invoicing |
Maintain tax-ready sales records |
|
Receivables management |
Monitor customer payments |
|
Cost analysis |
Evaluate job-wise profitability |
For advanced printing operations, additional requirements may include artwork approvals, printing plate tracking, machine scheduling, colour management, barcode scanning and real-time shop-floor updates.
These specialized capabilities may require dedicated software or integration.
Order tracking is one of the most important functions in a printing and packaging business.
A typical customer order passes through several stages.
Stage 1: Customer Enquiry
The customer provides specifications, quantity, material requirements and expected delivery date.
Stage 2: Cost Estimation
The business calculates expected material, labour, machine and overhead costs.
Stage 3: Quotation Approval
The customer approves the price and commercial terms.
Stage 4: Sales Order Confirmation
The confirmed order becomes the basis for procurement and production planning.
Stage 5: Material Allocation
Available inventory is checked, and shortages are identified.
Stage 6: Production
Materials are consumed and production activities are recorded.
Stage 7: Quality Inspection
Completed products are checked against specifications.
Stage 8: Dispatch and Billing
Finished goods are dispatched, and the appropriate invoice is generated.
TallyPrime supports sales orders, inventory and invoicing. Detailed live production-stage tracking may require additional operational processes or specialized integrations.
Job costing calculates the expenses associated with a particular customer order or production job.
For printing and packaging businesses, accurate costing is essential because jobs differ significantly in quantity, materials and production complexity.
Raw Materials: Paper, board, ink, film, adhesive, lamination materials and other consumables.
Direct Labour: Employees directly involved in printing, cutting, folding, pasting and finishing.
Machine Costs: Relevant machine operating costs, including power, maintenance and depreciation allocations.
Production Overheads: Factory rent, supervision, utilities and other indirect manufacturing costs.
Wastage: Normal production waste and the financial impact of abnormal waste or rejected output.
Packing and Delivery: Applicable packing materials, handling and transportation costs.
Total Job Cost = Direct Materials + Direct Labour + Allocated Production Overheads + Other Attributable Costs
Job Profit = Net Job Revenue − Total Job Cost
The costing policy should distinguish production cost from selling and administrative expenses where appropriate.
Suppose a packaging manufacturer receives an order for 10,000 printed cartons.
The estimated costs are:
|
Cost component |
Amount |
|---|---|
|
Duplex board |
₹65,000 |
|
Printing ink |
₹12,000 |
|
Lamination material |
₹10,000 |
|
Adhesive and consumables |
₹5,000 |
|
Direct labour |
₹18,000 |
|
Machine operating cost |
₹15,000 |
|
Allocated production overhead |
₹10,000 |
|
Normal wastage allowance |
₹5,000 |
|
Total estimated job cost |
₹1,40,000 |
Estimated cost per carton:
₹1,40,000 ÷ 10,000 = ₹14
If the selling price is ₹18 per carton, excluding GST:
Total sales revenue = ₹1,80,000
Estimated job profit = ₹1,80,000 − ₹1,40,000 = ₹40,000
Estimated job margin = 22.22% of revenue.
This calculation assumes all 10,000 cartons are saleable and that the wastage allowance is not already included in other material costs.
If actual production costs increase, the business must recalculate the margin.
For fifteen years, Amit operated a small packaging manufacturing unit in Naraina Industrial Area, Delhi.
His father had established the factory with one cutting machine and a few workers.
Over time, Amit invested in printing equipment, expanded the workforce and began supplying cartons to food manufacturers and electronics distributors.
One morning, the company received its largest order: 80,000 customized packaging boxes for a major customer.
The order represented an opportunity to expand the business and provide more stable employment to workers.
Amit accepted the assignment with confidence.
However, the production team soon discovered that the required board was insufficient.
Additional material purchases increased costs, and repeated machine adjustments caused unexpected wastage.
The delivery date approached, but nobody could provide Amit with an accurate picture of production progress.
Sales employees maintained customer orders in spreadsheets, while production supervisors used handwritten registers.
The accounting department recorded expenses but could not easily connect them to the specific job.
The order was eventually completed, but its profitability was far lower than Amit had expected.
That evening, he sat alone in the factory office.
He thought about the workers waiting for salaries and the loans he had taken to purchase machinery.
His father had once told him, "A large order is valuable only when the business earns enough to survive."
Amit realized that increasing sales without controlling costs could put the entire company at risk.
He decided to reorganize the business.
With professional guidance, the company introduced structured sales orders, inventory records and job-wise cost tracking.
TallyPrime was configured to support accounting, material transactions and cost-centre reporting.
Production supervisors also began maintaining standardized job-progress records.
Over the following months, Amit gained better visibility into material consumption, customer outstanding balances and job profitability.
He still faced production challenges, but decisions were increasingly based on reliable information.
When another major customer placed an order, Amit reviewed the cost estimate carefully before confirming the price.
For the first time in years, he felt that business growth was becoming manageable rather than frightening.
This fictional story illustrates the emotional and financial importance of job costing, order visibility and disciplined production management.
TallyPrime provides several capabilities that are useful for printing and packaging operations.
Businesses can record confirmed customer orders and review pending quantities.
Purchase orders help maintain structured procurement records for paper, ink, board and other materials.
Stock items, units, stock groups and godowns help businesses organize raw materials and finished goods.
Supported manufacturing features allow businesses to define Bills of Materials and record production-related inventory movements.
Cost centres and cost categories can help allocate relevant income and expenses to jobs, departments or projects.
TallyPrime supports GST-related invoicing and accounting reports.
Businesses can review Profit & Loss Accounts, Balance Sheets, inventory summaries and outstanding receivables.
TallyPrime is not a complete substitute for specialized printing production software in every situation. Advanced machine scheduling, artwork workflow and live production tracking may require complementary solutions.
Step 1: Create raw material masters. Set up stock items for paper, board, ink, adhesive and other consumables.
Step 2: Configure units and godowns. Use appropriate units such as sheets, kilograms, rolls and pieces. Configure godowns where separate inventory locations are needed.
Step 3: Enable order processing. Record customer sales orders and supplier purchase orders using the relevant TallyPrime features.
Step 4: Configure Bills of Materials. Define standard material quantities for applicable manufactured products.
Step 5: Create cost centres. Establish job-wise or department-wise cost centres for tracking relevant expenses.
Step 6: Record material consumption. Use suitable manufacturing or inventory vouchers to record raw materials consumed and finished goods produced.
Step 7: Allocate costs. Record labour, machine and other relevant expenses against appropriate cost centres.
Step 8: Generate invoices. Prepare GST invoices for completed and dispatched orders.
Step 9: Review job profitability. Compare job-related revenue with allocated costs using the relevant accounting reports and supporting calculations.
Step 10: Reconcile records. Verify stock movements, wastage, outstanding orders and customer balances regularly.
For complex production environments, additional customization or integrated manufacturing software may be necessary.
Illustrative case study based on common printing industry challenges.
An offset printing company in Okhla Industrial Area, Delhi, produced brochures, catalogues, labels and promotional materials.
The company handled orders with different paper qualities, printing colours and finishing requirements.
Cost estimates were maintained in spreadsheets, while accounting transactions were recorded separately.
Material wastage and finishing expenses were not consistently allocated to individual jobs.
As a result, management found it difficult to determine which orders generated acceptable margins.
The company introduced structured sales orders, material masters and job-wise cost centres in TallyPrime.
The accounting team recorded relevant material purchases, consumption and production expenses.
A separate job sheet was maintained for detailed machine time and finishing-stage information.
The company gained clearer visibility into job costs and material usage.
Management could compare estimated costs with actual expenditure and review quotation accuracy.
The business also established more consistent accounting procedures.
Key lesson: Connecting job estimates with actual accounting records helps printing businesses improve pricing decisions.
Illustrative case study demonstrating practical packaging business improvements.
A corrugated box manufacturer in Bawana Industrial Area, Delhi, supplied packaging materials to food processors, electronics distributors and e-commerce businesses.
The company maintained several grades of kraft paper and produced cartons in different dimensions.
Material shortages frequently disrupted production.
Finished goods were sometimes produced before the accounting team received updated customer order information.
The company also experienced difficulties calculating order-wise profitability.
The manufacturer introduced structured purchase orders, inventory masters and sales order records in TallyPrime.
Bills of Materials were created for standard products, and cost centres were used for relevant expense allocation.
Production supervisors maintained standardized job-progress and wastage records.
The company improved visibility into raw material availability and outstanding customer orders.
Management could review production costs more systematically.
Communication between sales, production and accounting departments also became more organized.
Key lesson: Accurate inventory and order records are essential for efficient packaging production.
Inventory control is particularly important because printing and packaging units maintain materials with different specifications.
Paper may vary by GSM, size, coating and quality.
Packaging board may vary by grade, thickness and dimensions.
Ink and adhesive may require separate quantity tracking.
TallyPrime supports stock groups, stock items, units of measurement, godowns and inventory reports.
Businesses can organize materials according to their operational requirements.
For example, different grades of kraft paper can be maintained as separate stock items.
Regular stock verification helps identify shortages, excess consumption and discrepancies.
Where businesses require advanced roll-level traceability, barcode scanning or automated warehouse operations, additional systems may be appropriate.
Wastage directly affects profitability in printing and packaging.
Common causes include incorrect machine setup, paper damage, trimming losses, colour variation and rejected finished products.
Businesses should establish expected wastage allowances for different job types.
Actual consumption can then be compared with estimated quantities.
For example, if a job requires 10,000 finished sheets and the expected wastage is 3%, the production plan must account for the additional material needed.
However, businesses should distinguish between a 3% allowance calculated on required output and a 3% rejection rate calculated on total input.
These produce different material requirements.
TallyPrime can record material consumption and inventory adjustments, while detailed production loss analysis may require additional operational records.
Printing and packaging businesses must maintain appropriate GST classifications and invoice records.
The applicable tax treatment depends on the nature of the supply, product classification and contractual arrangement.
TallyPrime supports GST-related invoicing, accounting and reporting features.
Businesses can record sales, purchases, credit notes and debit notes.
Relevant reports help accounting teams review tax transactions.
However, businesses should verify applicable GST rates, HSN classifications and e-invoicing requirements before issuing invoices.
Correct statutory treatment remains the responsibility of the taxpayer.
Printing businesses may operate production units, warehouses and sales offices at different locations.
Cloud-hosted TallyPrime can provide authorized employees with remote access to a centralized accounting environment, subject to compatible licensing and infrastructure.
For example, a sales manager in Delhi may review customer outstanding balances while the accounting team works from the factory.
Management may also review financial reports while travelling.
Cloud hosting can support collaboration and backup planning.
However, security, connectivity, access permissions and recovery arrangements must be evaluated carefully.
Before selecting ERP software, businesses should assess their actual operational requirements.
A small printing unit may primarily need order recording, inventory management, GST billing and basic job costing.
A medium-sized packaging manufacturer may require Bills of Materials, multiple godowns, production records and cost-centre analysis.
A large printing operation may need advanced production scheduling, artwork approvals, machine integration and detailed shop-floor tracking.
Businesses should evaluate software compatibility, implementation costs, employee training, reporting capabilities and ongoing support.
The best solution is one that addresses actual operational problems without introducing unnecessary complexity.
Binarysoft Technologies, an Authorized Tally Partner based in New Delhi, assists businesses with TallyPrime licensing, implementation, inventory configuration, accounting workflows and financial reporting.
Printing and packaging companies can seek assistance with sales order management, purchase accounting, stock item setup, cost centres and GST configuration.
Businesses may also explore cloud-hosting arrangements and suitable customization requirements.
Professional implementation helps ensure that accounting records align with business operations.
Specialized printing production requirements should be evaluated separately to determine whether additional software or integrations are necessary.
Printing and packaging businesses operate in an environment where material costs, production efficiency, delivery schedules and customer expectations directly affect profitability.
An effective ERP approach connects customer orders, inventory, production records, costing and financial reporting.
TallyPrime provides useful capabilities for accounting, inventory management, sales orders, Bills of Materials, cost centres and GST invoicing.
For businesses with advanced production requirements, specialized printing or packaging software may complement these features.
The most important objective is not simply installing software. It is creating a reliable system that helps management understand material consumption, job profitability and customer commitments.
When every order is tracked accurately and every production cost is understood, printing and packaging businesses can grow with greater confidence and financial control.
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Contact Us: +91 7428779101, 9205471661
Email: tally@binarysoft.com
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