Wholesale distribution software is a program that joins a wholesaler's billing, stock, customer and supplier accounts and cash in one system, so that one entry updates all of them. It replaces the sale register, the purchase register, the stock register and the khata book.
What does wholesale distribution software do?
It does five jobs and connects them:
- Billing. It makes sales and purchase invoices with quantity, unit, rate, discount and tax.
- Inventory. It raises stock on a purchase and lowers it on a sale, and shows the movement of each product.
- Party accounts. It keeps a running ledger (khata) for every customer and supplier.
- Cash and bank. It records every receipt, payment and expense against a cash or bank account.
- Results. It reports sales, outstanding balances, stock value and profit and loss.
The connection is the point. A sales invoice is typed once; stock, the customer's balance, the cash account and the profit figure all change from that one entry.
How is it different from billing software?
Billing software prints a bill. Wholesale distribution software also knows what the bill did to your stock and to the customer's account.
| Question | Billing-only software | Wholesale distribution software |
|---|---|---|
| Prints an invoice | Yes | Yes |
| Reduces stock | Sometimes | Yes, in the product's own unit |
| Updates the customer's balance | Rarely | Yes, with a running ledger |
| Tracks what you owe suppliers | No | Yes |
| Shows real profit | No | Yes, using the cost of goods sold |
Who needs wholesale distribution software?
A business needs it when it buys goods in bulk, sells to shops or other businesses, and gives credit. In Pakistan that describes electrical distributors, hardware distributors, building material dealers, FMCG distributors, medical and surgical distributors, auto-parts distributors, electronics wholesalers and cloth and garment wholesalers.
Three signs show that a business has outgrown its registers:
- The stock on the shelf does not match the stock in the book.
- A customer disputes his balance and you need an hour to prove it.
- You cannot say what you earned last month without guessing.
Which features matter most for a Pakistani wholesaler?
Four features matter most, because they match how trade works here:
- Udhaar. Most sales are on credit, so the ledger, the credit limit and the outstanding list are used daily. See managing udhaar.
- Units. Goods are bought in cartons, bags or tons and sold in pieces or kilograms. See unit conversion.
- Changing rates. Purchase rates move every week, so stock must be valued at weighted average cost.
- Trust. Staff make the bills, so invoices must be reversed, not deleted, and every action recorded.
What does wholesale distribution software cost in Pakistan?
Online software is paid monthly. M-Tech Logistics costs from Rs 2,500 a month, and the price rises with the number of users and records. See the packages and prices.
Installed (desktop) software is usually bought once and then needs paid visits for support. Online and desktop software compared.
In M-Tech Logistics: all five jobs are in one system, set up for your type of business. See everything the wholesale distribution software does.