A diamond assorting ERP with stock custody and inventory management for a Surat diamond house
The diamond inventory management ERP Yukti AI built for P. Hitesh & Co., a Surat diamond house. Every carat sits in exactly one place — a vault, a manager, a sorter, an assorting job, a transit bag — and moves only through a recorded, acknowledged hand-over. Assorting turns a parent parcel into child lots with the weight and the cost carried across, and the same system runs Surat, Mumbai and export movements, attendance, overtime and payroll, sales, GST billing and double-entry accounts, with an AI copilot that reads the live stock and recommends what to look at first.
P. Hitesh & Co. is a Surat diamond house that trades loose polished diamonds, certified and non-certified, in round and fancy shapes. A diamond business does not hold stock in SKUs; it holds carats in parcels, and the parcels change hands all day between a central vault, managers, sub-managers and sorters, move to Mumbai, go out on export, and are split into new lots by assorting. Yukti AI built one ERP around that reality: a stock ledger that can only be changed by a recorded movement, a custody tree that shows who holds which lot right now, parent-child lot traceability through assorting, a daily closing report with approvals, workforce and payroll, sales and export invoicing, and accounting whose diamond inventory always equals the stock ledger. It is a working version built around the firm’s own workflow; the provider, Tally, WhatsApp and attendance-device connections are configured at go-live.
Contents
- Quick answer and quick facts
- Screenshots
- The business
- Who this diamond inventory ERP is for
- The challenge: why Excel and Tally stop being enough
- Before vs after and task by task
- Diamond inventory management: the stock ledger, lots and valuation
- Stock custody: one carat, one place
- Assorting with parent-child lot traceability
- Surat, Mumbai and export movements
- Daily closing, discrepancies and approvals
- AI in diamond inventory management: built and buildable
- Automation: what runs by itself
- Attendance, overtime and payroll
- GST, accounting and the Tally question
- Diamond ERP vs inventory software vs Tally
- Features of diamond inventory software and which this build covers
- Benefits of diamond inventory management software
- What AI and automation can add
- How the integrity checks work
- Solution architecture and the modules
- Roles and permissions
- How it was built and what was delivered
- What this page does not claim
- Technology and what can be added next
- Cost and timeline
- FAQ
What is the best inventory management software for a diamond business?
A diamond business needs inventory software that tracks carats in lots and custody, not units in SKUs: an append-only stock ledger, every lot in exactly one place at a time, parent-child lot traceability through assorting, acknowledged transfers between Surat, Mumbai and export, value-conserving costing, and accounts that reconcile to the stock. Yukti AI, a software company in Surat, built exactly this diamond inventory management ERP for P. Hitesh & Co.: custody tree, assorting with weight reconciliation and a discrepancy hold, daily closing with approvals, attendance, overtime and payroll, GST and export billing, and a rule-based AI copilot that flags what needs attention. A custom diamond ERP from Yukti AI starts from ₹30,000, and a first working version is typically ready in about 7–10 days.
Quick facts
| Client | P. Hitesh & Co., Surat, Gujarat — a diamond house that describes itself as a leading trader of loose diamonds in Surat, trading since 1997 (from the company’s own website) |
|---|---|
| Industry | Diamonds — loose polished diamonds, certified and non-certified, round and fancy shapes, with assorting of parcels |
| Business type | Trader with assorting (sorting) operations; stock held in Surat, in Mumbai, in transit and on export |
| Problem | Carats held by many people in many places, split by assorting into new lots, moved between cities and sold domestically and on export, with accounts kept in a separate ledger-only tool |
| Solution | A custom diamond inventory management ERP with stock custody, assorting, purchase, transfers, exports, workforce, sales, accounting and an AI copilot in one system |
| Core mechanics | Append-only stock-movement ledger; one custody node per carat; parent-child lots; value-conserving assorting; in-transit stock until receipt; discrepancy hold instead of silent write-off |
| Modules | 57 navigation entries across overview, diamond operations, people, sales, accounts, communication, reports and administration |
| People side | Attendance register, face-attendance kiosk, leave, overtime approved manager-then-HR, monthly and hourly payroll with PF, ESI and PT flags, payslips |
| Money side | Double-entry vouchers, general ledger, bank reconciliation, trial balance, P&L, balance sheet, cash flow, GST reports, domestic and export (LUT) invoices in INR, USD, HKD, EUR or AED |
| AI layer | PH AI Copilot: rule-based insights and answers computed from live stock, assorting, HR, finance and sales data; recommendations only, no automatic postings |
| Stack | Next.js 16, React 19, TypeScript, Tailwind CSS 4, Recharts, Zod, decimal.js |
| Connections | Tally, WhatsApp, attendance devices, certificate and price-list providers are configured at go-live; none is claimed as live on this page |
| Status | Working version built by Yukti AI around the firm’s workflow; usage and results are not claimed |
What P. Hitesh & Co.’s team works in
Screens from the diamond inventory management ERP built by Yukti AI for P. Hitesh & Co. Figures visible in the screenshots illustrate the screens and are not the firm’s business numbers.
A parcel of diamonds is never in one place for long
A parcel of polished diamonds is a strange kind of stock. It has no barcode on every stone, it is sold by the carat and priced by shape, size, colour and clarity, and its value changes the moment it is sorted. P. Hitesh & Co. in Surat deals in loose diamonds — certified and non-certified, round and fancy, in a wide range of sizes — and a lot of what it handles passes through assorting, where a mixed parcel is sorted by shape, colour and quality into finished assortments.
That means the stock is always in motion. The central vault issues a parcel to a manager. The manager gives part of it to a sub-manager, who gives it to sorters. Sorted output comes back as new lots. Some goes to the Mumbai office, some goes out on export, some is held for a customer, and some is in a courier bag that has left one city and not yet been counted in the other. Each of those hand-overs is a moment where a carat can be counted twice, counted nowhere, or argued about.
Yukti AI’s job was to build one system that treats those hand-overs as the main event. The owner’s brief was an ERP that connects diamond procurement, stock custody, assorting, staff productivity, attendance, overtime, payroll, dispatch, the Surat, Mumbai and export movements, sales, purchase, invoicing and accounting — and that is designed so a firm can move its accounts off a ledger-only tool after proper migration and validation.
A diamond ERP has to follow the carats: where each lot is, who holds it, where it came from, what it cost, what it became after sorting, and whether the books agree. Billing is the last step, not the system.
Who is this diamond inventory management ERP for?
The system was designed around a Surat diamond house that buys parcels, assorts them, holds stock with managers and staff, moves goods between Surat, Mumbai and export, and sells on credit. If you run a diamond trading firm, a polished-diamond wholesaler, a sorting or assorting unit, or an export house, the problems on this page will sound familiar. It is also a worked answer to the broader search for diamond software in Surat: diamond stock management software that is built around custody and traceability, not around a flat stock list. Our diamond software page covers memo, holds and per-buyer price lists; this case study goes deep on inventory, custody and assorting.
It is a good fit if most of these are true for you:
- You hold parcels with managers, sub-managers or sorters and cannot say in one minute who holds which lot.
- You sort mixed parcels into assortments and want the weight, the cost and the lineage of every output lot recorded.
- You keep stock in Surat and Mumbai and move goods by courier, and stock in transit is argued about.
- Your stock list is in Excel and your accounts are in Tally, and the two never quite agree.
- You pay sorters monthly or by the hour, with overtime, and payroll sits outside the stock system.
- You export, invoice in dollars or dirhams, and want the shipment, the invoice and the payment tied to the lots that left.
The same design suits other diamond businesses: manufacturers with factory floors, polished wholesalers, brokers who hold goods on trust and export houses. For jewellery manufacturers who set diamonds into gold, see our jewellery ERP, CRM and catalogue software and the Lumera jewellery system. P. Hitesh & Co. is in Surat, and so is Yukti AI; we build these systems for diamond firms across Surat, Gujarat and India.
Why a stock list and a ledger tool stop being enough for a diamond house
These points are our description of the gaps a system of this kind has to close, drawn from the owner’s brief and the business model. They are not quotes from the client, and no measurement of the firm’s previous way of working is claimed.
- Stock is a list, but the problem is custody. A stock list says there are so many carats of a lot. It does not say that part is with a manager, part is in sorting, part is in a bag to Mumbai. Without a place for every carat, reconciliation becomes an argument.
- Assorting breaks the lot. When a parent parcel is sorted into output lots, a spreadsheet needs three or four manual rows and a weight that someone has to make add up. The link from child back to parent, and the cost carried across, usually lives in someone’s memory.
- Transit stock is invisible. Goods that have left Surat and not been received in Mumbai are not in either stock count. They need their own place, closed by an acknowledged receipt.
- Small differences vanish. A few hundredths of a carat missing after sorting is easy to write off and hard to notice as a pattern. It should be held, investigated and attributed to a custodian.
- Accounts and stock drift apart. If stock lives in Excel and the ledger lives in Tally, the diamond inventory in the balance sheet is a number someone types in at month end.
- People and stock are managed separately. Who held which parcel, who was present, who worked overtime and who was paid for it are one story, but they sit in different files.
- Owners want a daily picture. A closing report that every manager submits, with expected against physical stock, is only useful if the system can compute the expected figure.
How diamond stock is tracked now
Before
- Stock as a list of carats per lot, edited by hand
- Who holds what known from memory and slips of paper
- Assorting output typed in as new rows, weight balanced by hand
- Goods in transit counted in neither city
- Stock in Excel, accounts in a separate ledger tool
- Attendance, overtime and payroll outside the stock system
- Daily closing as a phone call or a message
After (in the ERP)
- Stock folded from an append-only movement ledger; no editable quantity
- A custody tree: vault, manager, sub-manager, sorter, assorting job, hold, transit
- Child lots created on reconciliation with weight, lineage and cost carried across
- In-transit stock until the receiving side acknowledges
- Diamond inventory in the accounts always equals the stock ledger value
- Attendance, approved overtime and payroll on the same ledger
- Daily closing with expected vs physical stock and approval
How does a typical day change, task by task?
The table walks through the real jobs in a diamond house and what each looks like in the ERP. The “before” column is a general description of the manual way of working, not a measurement, and no time savings are claimed.
| Task | Before (manual) | After (in the system) |
|---|---|---|
| Buying a parcel | Supplier invoice in a ledger; parcel weighed and noted on paper | Purchase records gross, accepted and rejected carats, rate, charges and tax treatment; accepting creates the lot and the voucher |
| Checking quality on arrival | Informal look by the stock controller | QC status on the lot (Pending, Passed, Hold); held lots sit in a QC-hold place and are not available for sale |
| Handing a parcel to a manager | Slip or message | Issue / hand-over records lot, carats, pieces, from and to, by whom; the balance moves from one custody node to the next |
| Starting an assorting job | Parcel handed out, weights jotted down | Job with parent lot, manager, sub-manager, staff allocations, priority and target time; input moves into the job’s own work-in-progress place |
| Finishing the sort | New rows typed by hand | Output lots entered by shape, size, colour, clarity and grade; live reconciliation shows input minus outputs minus returns minus approved adjustment |
| Explaining a difference | Written off or argued over | Unexplained variance goes to a discrepancy hold, raises a case against the custodian and waits for an owner decision |
| Sending goods to Mumbai | Courier bag, a message, a call on arrival | Transfer with approval, seal number and vehicle; stock sits in transit until Mumbai acknowledges the receipt |
| Selling | Invoice from a stock list | Quotation reserves the lot; the order and invoice come from the reserved stock; export invoices carry currency and exchange rate |
| Paying staff | Attendance register and a calculator | Attendance, approved overtime, advances and loans flow into a payroll run that is reviewed and approved before it posts |
| Closing the day | Verbal report | Each manager submits a closing report; the system computes expected closing stock and flags any variance for approval |
Want a diamond inventory system built around your vault and your sorters?Tell us how a parcel moves today and we’ll show you what one system would replace. Free workflow audit, reply the same day.
Chat on WhatsAppDiamond inventory management: the stock ledger, lots and valuation
Searches for diamond inventory management software usually land on tools that list stones with a certificate number, a price and a photo. That is a stock catalogue, and a good diamond house needs one. But the hard part of diamond inventory management is not listing what you have; it is knowing, at any minute, where every carat physically is, who is responsible for it, and how it got there. This is what the P. Hitesh & Co. build puts first.
Stock is never an editable number
There is no “quantity” field to type over. Every balance in the system is folded from an append-only stock-movement ledger: each movement names the lot, the carats and pieces, the place it leaves, the place it reaches, its cost value, the reason, who initiated it, who approved it and a trail of what happened. A movement reduces the source and increases the destination in one atomic step. If a number is wrong, you add a movement that corrects it, with a reason and an approval; you do not overwrite history. The model has 26 movement types, from opening stock and inward, through issue to manager, sub-manager and employee, return, transfer dispatch and receipt, export dispatch, customer dispatch, QC hold and release, assorting issue, consume, output and return, to discrepancy hold, found and write-off.
Lots, not SKUs
The unit of stock is the lot (a parcel). A lot carries shape, size range, colour, clarity, cut and grade, whether it is certified, a natural or lab-grown flag, the supplier and the purchase it came from, the origin carats and pieces, a carrying cost per carat from specific identification and an indicative market rate per carat used for estimates only. Lots have a stage — Inward, Initial QC, Parent Lot, Assorting, Finished Assortment, Ready for Sale — and a QC status. The inventory screen lists lots with owned carats, pieces, cost per carat, value, number of custodians and carats reserved for customers, with filters for QC status, shape, stage and natural or lab-grown, plus CSV export.
Locations and valuation
The inventory page opens with the company’s stock split by place: the Surat central vault, Surat staff custody, Surat assorting work-in-progress, the QC and discrepancy hold, the Mumbai office, Mumbai staff custody, goods in transit between the cities, and export in transit. Tabs switch between lots, the movement ledger (filterable by type, direction and date, with CSV) and a valuation view. Stock is valued at cost by specific identification, which is how a diamond house actually thinks about a parcel, rather than by an averaged unit cost.
Reservations keep sales honest
When a quotation or an order is raised, the carats are reserved against the lot at its custodian. Available stock is owned stock minus reserved stock, so two salespeople cannot promise the same parcel. Reservations are released when the document is cancelled or closed and consumed when the goods are dispatched.
For the broader question of how a package compares with a custom build, see diamond ERP vs inventory software vs Tally below, and for jewellery makers see what to look for in jewellery ERP software.
Stock custody: one carat, one place
The rule that organises the whole system is short: each carat sits in exactly one custody node at any moment. A node is a store, a person, an assorting job’s work-in-progress, a hold, or a transit bag. Because the same carat can never be in two nodes, nothing is double-counted, and nothing can be silently nowhere.
The custody tree
The custody screen shows a tree: the company, then Surat and Mumbai, then the central store, then each manager, their sub-managers and the staff under them; assorting work-in-progress per job; the QC and discrepancy hold; and the transit and export places. Each branch rolls up carats and value. Selecting a person shows what they received, returned, transferred and hold now for any date range, the last hand-over, and the lots currently held, with a button to issue or hand stock over from there. A bulk allocate action issues several lots at once.
Hand-overs are movements
Issuing to a manager, a manager to a sub-manager, a sub-manager to a sorter, and every return the other way are separate recorded movements, each with a reason and who initiated and approved it. The system infers the type of movement from the two ends and warns when a hand-over skips a level of the hierarchy. A hand-over can carry a receipt acknowledgement, so the record shows not only that stock was given but that it was accepted.
Custody ageing
Because every holder is known, the system can see how long a parcel has stayed with a person. The AI copilot uses this to flag staff who have held parcels for seven days or more, since stock that sits with individuals for long periods is custody risk. See AI in diamond inventory for what that insight says and what it does not do.
Diamond assorting software with parent-child lot traceability
Assorting is where diamond inventory management usually breaks. A mixed parcel goes in; many smaller, more homogeneous lots come out; the weight never adds up exactly; and the cost of the original parcel has to be spread sensibly over the outputs. The P. Hitesh build treats it as a controlled job with a clear beginning and end.
An assorting job
A job names the parent lot, the manager and sub-manager, the staff allocations in carats and pieces, a route, a priority and a target time. Starting the job moves the input into the job’s own work-in-progress place, so it is visibly “in assorting” and not in anyone’s vault. A stepper walks the job through Initial QC, Shape sorting, Colour sorting, Output weighing, Quality check and Reconciliation. Jobs can be viewed as a list, a kanban board or a productivity view, and the screen shows active jobs, jobs awaiting QC, jobs awaiting reconciliation, overdue jobs, average yield and variance flagged.
Outputs, QC and live reconciliation
For each output the sorter records shape, size, colour, clarity, grade, carats, pieces and an estimated rate per carat. A live reconciliation panel shows input, minus total output, minus returned unprocessed material, minus any approved adjustment, which leaves the unexplained variance. QC approves or rejects the job, with remarks and the number of sample pieces checked; a rejected job goes back. Nothing is created until QC approves and the job is reconciled.
On reconciliation the system does four things in a fixed order, and every one of them is a recorded movement. First, any unprocessed material is returned to where it came from. Second, any unexplained variance is moved to the Discrepancy Hold and a discrepancy case is raised against the custodian who issued the parcel — it is never silently written off. Third, the processed portion of the parent lot is consumed. Fourth, the child lots are created, one per output, each pointing to its parent lot and to the job.
Cost is carried across. The cost of the parent that was consumed is allocated to the children in proportion to their estimated value weight, with the last output absorbing any rounding, so the value going in equals the value coming out. That is the rule the build calls value-conserving assorting. A lot’s page shows its lineage tree, so from any finished assortment you can walk back to the parent parcel, the purchase and the supplier it came from.
The result for the owner is a clean answer to three questions that normally take a day of spreadsheet work: what did this parcel become, what did it cost per carat in each output, and what was the unexplained difference and who held the parcel when it appeared.
Surat, Mumbai and export movements: in-transit stock until receipt
P. Hitesh & Co. operates from Surat and also from Mumbai and sells on export, so the stock is rarely only in one place. The build models those movements as first-class workflows.
Surat and Mumbai transfers
A transfer in either direction is created with the lots and carats to move, goes for approval, and is dispatched with a courier, seal number and vehicle. From the moment it is dispatched the stock is in a transit place and is counted in neither city. The destination increases only when the receiving side acknowledges receipt; if the accepted carats or pieces differ from what was sent, the transfer is received with discrepancy and a case is raised. A Mumbai operations screen gives the receiving office its own view.
Export shipments
An export shipment ties parcels to a customer, a destination country and city, an invoice and order, the declared value and currency with the exchange rate, a courier and airway bill, a document checklist and a status that runs from Draft and Docs Pending through Ready to Ship, Dispatched, Customs Cleared and In Transit to Delivered, with a timeline. The design rule is that export dispatch is not sale completion, and neither is payment: revenue and cost of goods are recognised when the goods leave company custody, while payment status is tracked separately.
For a trading platform with a buyer-facing portal, holds and per-client price lists, see our diamond trading platform case study for a Surat export house; the two systems solve different halves of a diamond business.
Stock in transit between cities and nobody sure who has it?We’ll map how goods move between your offices and show how a transit place and an acknowledged receipt would close the gap. Free workflow audit.
Chat on WhatsAppDaily closing, discrepancies and approvals
Most diamond owners want one thing at the end of the day: a clear statement of what each manager is holding and whether it matches. The closing module computes that instead of asking for it.
The closing report
Each manager and sub-manager submits a daily report. The system fills the movements it already knows: opening carats, received, allocated, processed, output, returned, transferred, sent to Mumbai, sent to export and dispatched. From these it computes the expected closing stock; the custodian enters the physically counted figure, and the difference is the variance. The report also records staff present against total, overtime minutes, tasks completed and delayed, pending work, comments and incidents. A report moves from Not Started and In Progress through Submitted to Approved, or to Discrepancy or Needs Owner Approval.
Discrepancy register
Differences from assorting, transfers, closing and audits land in one register with a status of Open, Under Review, Needs Owner Approval, Resolved – Found or Written Off, the custodian who held the stock when it was found, the carats, pieces and value at cost, and a description. Repeated small differences from the same custodian within 30 days are surfaced as a pattern worth a surprise audit.
Approvals in one queue
Stock transfers, high-value sales, purchases, overtime, payroll, expense claims, discrepancies, stock adjustments and discounts all raise approval requests with the roles that may decide, a priority and a comment trail. A stock adjustment is itself a request: the quantity changes only after approval, through a movement.
AI in diamond inventory management: what is built and what is buildable
“AI inventory management for diamonds” can mean grading stones from images, forecasting prices or just a chatbot on a stock list. What the P. Hitesh build contains is more modest and more useful for day-to-day control: an AI copilot that reads the live stock, custody, assorting, HR, finance and sales data and tells the owner what needs attention, with the evidence and a recommended action. This section separates what is built from what is buildable.
What the copilot does
- Insight cards by module. Seventeen kinds of insight across Owner, Stock, Assorting, HR, Finance, Sales and Logistics, each with a severity (positive, info, warning, critical), a narrative, linked records, a recommended action, a confidence statement and, where relevant, a limitation.
- Stock insights. Unresolved discrepancies, repeated differences from the same custodian, parcels held by staff for seven days or more, transfers still in transit, unusual movements such as after-hours or unusually large hand-overs, and purchase lots whose QC is not complete.
- Assorting insights. Jobs past target time, unexplained yield variance, team productivity and yield comparisons, and jobs whose balances do not tie.
- Finance and sales insights. Overdue receivables, possible duplicate invoices, whether the general ledger’s diamond inventory agrees with the stock ledger, cash and open quotations.
- Ask-a-question. A prompt library and free-text questions such as “which manager has the most unreconciled stock”, “which Mumbai transfers have not been acknowledged” or “show customers with overdue invoices”, answered from the current data with a table, linked records, a confidence line and its limits.
- AI daily report. A narrative summary for the owner of the day’s stock, purchases, sales and collections, with shortcuts to unusual movements and unreconciled stock.
How it works, honestly
The copilot is rule-based: each insight is computed deterministically from the application’s data, and each answer says so. It does not call an external language model, and it never posts stock, payroll or accounting entries; it only recommends. It is written behind a provider interface so a language model can be plugged in later for free-text questions without changing the screens. That design is deliberate: for stock control, an answer that cites the exact movements it is based on is worth more than a fluent guess.
Built and buildable
The table separates what exists in this build from what we would add, so nothing here is oversold.
| Capability | Status in this build | What it would take |
|---|---|---|
| Exceptions and anomalies on stock (discrepancies, ageing in custody, unusual movements, transit) | Built, rule-based | Already computed from the movement ledger; thresholds are settings |
| Plain-language questions over live data | Built for a prompt library and common phrasings | A language model behind the provider interface for open-ended questions, grounded in the same data |
| Owner’s daily narrative and recommendations | Built, templated from live figures | A language model to vary and summarise; the figures stay computed |
| Assorting yield and productivity comparison | Built | Yield norms per parcel type to set targets, once the client supplies real standards |
| Slow-moving and dead stock by lot age and sales | Not built | Lot ageing against sales history and buy or stop-buying rules; compare our lot-wise diamond trading ERP with AI inventory insights |
| Demand or price forecasting | Not built | Sales history and a price source; a forecasting model is only credible with the client’s own history |
| Certificate or price-list lookup (GIA, IGI, Rapaport) | Not built | Provider accounts and an integration agreed with the client |
| Image-based grading or stone recognition | Not built, out of scope | Specialised scanning hardware and vendors; not something an ERP should pretend to do |
If you want AI added to a diamond business more broadly — WhatsApp assistants for your buyers, agents that act on stock data, summarised briefings — see our pages on AI automation for diamond and jewellery businesses in Surat, AI ERP, AI CRM and ERP-connected AI agents. The pattern we recommend is the one used here: compute from your own records, show the evidence, recommend, and keep a person in the loop for anything that moves stock or money.
Automation in the diamond ERP: what runs by itself
In an ERP, automation is mostly the system doing the bookkeeping that people otherwise do by hand. In this build the following run by themselves.
- Postings. Purchases, transfers, assorting, sales and payroll create their balanced vouchers; revenue and cost of goods are recognised when goods leave company custody. The general ledger’s diamond inventory and goods in transit always equal the stock ledger value, and a check proves it.
- Reservations and availability. Quotations and orders reserve stock; available balances update immediately.
- Reconciliation. Assorting reconciliation, variance hold, child-lot creation and cost allocation are one controlled action.
- Approval routing. Each request goes to the roles allowed to decide it and waits there; notifications and badges show what is pending.
- Insights. The copilot refreshes its cards from current data instead of asking someone to build a report.
- Attendance to payroll. Punches become attendance, approved overtime and a payroll run without re-typing.
- Tally migration. CSV templates, column auto-mapping and row validation prepare ledgers and vouchers for import.
Buildable, not built: WhatsApp and reminders
The build has a WhatsApp-style internal chat for the team. Sending real WhatsApp messages — payment reminders to buyers, receipt acknowledgements, stock alerts to managers — needs the WhatsApp Business API and approved templates, which are configured at go-live. We have built this elsewhere; see WhatsApp automation, the WhatsApp Business API pricing guide and our workflow and n8n automation work for how reminders, alerts and approvals are wired to messages.
Attendance, overtime and payroll in the same system
In a diamond house the people who hold the stock are also the people who are marked present, work overtime and get paid, so the build keeps those records together.
Attendance and the face-attendance concept
Employees sit in a hierarchy (manager, sub-manager, staff, office) and in workgroups, with shifts per location. The attendance register shows present, late, half-day, leave and absent, with corrections that need a reason and are logged. A face-attendance kiosk screen demonstrates how a face punch would record check-in and check-out with a confidence score; the matching itself is not connected to a real camera, and no biometric template is captured, so a real device and policy are chosen at go-live.
Overtime on approved hours only
Overtime is requested, approved first by the manager and then by HR, and only approved hours are paid. A late check-out alone never creates overtime pay. Overtime minutes also appear on each manager’s daily closing report.
Payroll
Employees can be on a monthly salary or an hourly rate, with basic, HRA, allowances, incentive, PF, ESI and professional-tax flags, advance and loan recoveries. A payroll run moves from Draft to HR Reviewed, Accountant Reviewed and Owner Approved, then Posted to the ledger and finally Paid, with payslips generated for each employee. Leave management and tasks with timelines complete the people side.
GST, accounting and the Tally question
The brief asked for finance workflows complete enough to replace reliance on Tally after proper migration and validation. The accounting module is a double-entry system, not an export to one.
- Books. Chart of accounts, vouchers with approval status, general ledger with party drill-down, trial balance, profit and loss (including by location), balance sheet and cash flow.
- Rules. Every voucher must balance; posted vouchers are immutable and corrected by reversal, never by editing.
- Bank. Bank statement lines are matched against book entries with candidate suggestions and an auto-match action, and a reconciliation statement is produced.
- GST. A GST report from invoices and purchases; purchase tax treatment can be CGST plus SGST, IGST, import IGST or exempt; export invoices are issued under LUT.
- Sales and receipts. Domestic and export invoices in INR, USD, HKD, EUR or AED with the exchange rate, receipts by NEFT or RTGS, cheque, cash, SWIFT or UPI allocated to invoices, credit notes and a possible-duplicate invoice check.
- Go-live readiness. A readiness check lists what must be true before the books are switched over.
The Tally question
A Tally migration toolkit prepares the move: CSV templates for each master and transaction, a parser that copes with quotes, tab or semicolon delimiters and byte-order marks, automatic column mapping, a Tally-ledger-to-ERP-account mapping that tries an exact Tally name, then an exact ERP name, then a fuzzy suggestion, and row-level validation for unknown ledgers, Dr and Cr imbalance, duplicate voucher numbers, bad dates, negative amounts and duplicate parties. A sandbox import records the batch without posting anything to the live ledger. The adapters for a direct Tally connection (XML, ODBC, API) are stubs in this build; the practical first pass is an export to CSV or Excel from any Tally edition. See Tally integration for a custom ERP and replacing Excel and Tally for the staged approach we recommend.
Ready to move off Excel stock sheets and a ledger-only tool?We build in stages that keep your books intact: masters first, parallel run, then cut-over. Free workflow audit, reply the same day.
Chat on WhatsAppDiamond ERP vs diamond inventory software vs Tally
Diamond-specific packages exist, and for some firms a package is the right answer; our honest view is below. The table compares three approaches on the questions that matter for custody-heavy diamond businesses. “Package” here means the typical stock-list or trading-oriented diamond software, and capabilities vary by vendor.
| Question | Diamond inventory software (stock list) | Tally or a ledger tool | Custom diamond ERP (this build) |
|---|---|---|---|
| Where is each carat right now? | Usually a location per lot | Not tracked | Custody node per carat, hand-over by hand-over |
| Assorting parent to child | Sometimes packet splits | Journal entries by hand | Controlled job, child lots, cost allocated, lineage tree |
| Weight differences | A note or an adjustment | Not visible | Discrepancy hold, case against the custodian, owner decision |
| Stock in transit | Often missing | Not visible | Transit place until receipt is acknowledged |
| Accounts match stock | Needs an export | Separate | Same ledger; check that stock value equals the GL |
| Attendance, overtime, payroll | Not included | Basic payroll add-on | Same system, approvals and payslips |
| Daily closing and owner report | Not included | Not included | Expected vs physical, approvals, AI summary |
| Fits your own workflow | Fit your workflow to the package | Fixed | Built around the firm’s own hierarchy and approvals |
| Cost model | Subscription or licence per user | Licence | One-time build, then support; quote after a free audit |
A package is quicker to start if your workflow is close to its assumptions and you mainly need a stock list, memo and certificates. A custom ERP is worth considering when your edge is how you operate — hierarchy of custodians, assorting, Surat-Mumbai movement, approvals — and you do not want to bend that to a vendor. Free tools are fine for a stock sheet; they do not hold a ledger, approvals or custody. Our custom ERP cost guide and custom ERP software in Surat page explain what drives the price, and our AI-powered business management system is the wider product idea.
How the integrity checks work
Saying an ERP is correct proves nothing; testing it does. This build ships with two verification scripts. verify:seed builds the data headlessly and prints integrity figures: whether the general ledger’s diamond inventory plus goods in transit equals the stock ledger value, whether the trial balance agrees and whether the balance sheet balances. verify:journeys drives eight end-to-end journeys, A to H, through the service layer and checks the integrity rules after every step.
The rules those checks enforce are the same ones that make the system trustworthy in use: balances are folded from the ledger and never typed; a carat is in one node; transfers do not increase the destination until receipt; assorting conserves value and sends unexplained weight to review; every voucher balances and posted vouchers are reversed, not edited; overtime is paid only on approved hours; and an export dispatch is neither a completed sale nor a payment.
Seed data in the build is replayed through the same services that run the live screens, so every cross-reference, ledger and balance is consistent by construction.
One thread, from the parcel to the ledger
Every step posts to the same books: movements change balances atomically, purchases, sales and payroll create balanced vouchers, and the dashboard, reports and copilot read the same data, so there is one version of the truth.
The modules
The sidebar has 57 working entries on one shared set of books — the scope of a full AI-powered business management system, shaped around a diamond house.
Overview
Owner dashboard with a daily AI business narrative, KPI cards and stock by location and custody; AI daily report; notifications; an approval queue.
Purchase and inward
Purchase types for local, import, rough assortment and broker purchases; supplier invoice, gross, accepted and rejected carats, rate, charges and tax; creates the lot and the voucher.
Inventory and stock
Lots, movement ledger, valuation, lot detail with holdings, lineage tree and history, request adjustment, issue and hand-over.
Stock custody
Custody tree, per-custodian summaries and ageing, bulk allocate.
Assorting and QC
Jobs with list, kanban and productivity views; outputs; live reconciliation; QC queue.
Manager control and tasks
Manager-wise performance, staff-wise daily production, tasks and timelines.
Daily closing
Closing reports with expected vs physical, discrepancy register, owner approvals.
Transfers, Mumbai and exports
Surat-Mumbai transfers with seal and acknowledgement, a Mumbai operations view, export shipments with document checklists.
People
HR dashboard, employees, face-attendance concept, attendance register, leave, overtime, payroll and payslips.
Sales
Customers, quotations with reservation, orders, invoices, receipts and payments.
Accounts
Chart of accounts, vouchers, ledger, bank reconciliation, trial balance, P&L, balance sheet, cash flow, GST, Tally migration.
Communication and AI
Internal chat in a WhatsApp style, AI copilot, activity feed.
Reports and administration
Inventory, assorting, HR, sales, finance and logistics reports; users and roles, locations, approval policies, workflow, attendance, payroll and accounting settings, audit log.
Roles and permissions
The build defines seven roles over 33 permissions: Owner / Super Admin, Purchase / Stock Controller, Manager, Sub-manager, HR Manager, Accountant and Sales / Export Executive. Navigation, dashboards and actions change with the role: a sub-manager sees their own custody and assorting work, HR sees attendance and payroll, the accountant sees vouchers and bank reconciliation, and only the owner sees valuations and the full dashboard. An audit log records who did what and when.
One honest point: in this build permissions are enforced in the application layer to show how each role works. In production, authorisation must be enforced on the server and the database, which is part of the go-live scope for any real deployment.
How it was built
Start from the owner’s brief
The brief listed the business flows and the differentiators: custody, parent-child traceability, workforce, Surat-Mumbai-export visibility, daily closing and accounts. We started there, and from the client’s public website for its brand and product range.
Build the ledger first
The stock-movement ledger, custody nodes and the double-entry books were built before any screen, because every screen posts to them.
Service layer, then screens
Each business action is a pure service function; the screens call them. Assorting, transfers, payroll, closing and sales all go through the same movement and voucher rules.
Seed realistic activity
A deterministic dataset was built as opening balances and then replayed day by day through the same services, so every screen looks populated and every total ties.
Verify with scripts
The seed and eight end-to-end journeys are checked by scripts after changes, including that the stock ledger and the general ledger agree.
Review and simplify
After review, page headers were simplified so each screen reads as easy to use rather than full, and the navigation grouped by what a person does.
See your own diamond workflow in a working system firstWe build on your real hierarchy, lots and approvals, so you judge something working, not a slide deck. Free workflow audit, reply the same day.
Chat on WhatsAppWhat was delivered
What the system does — no invented numbers.
What this page does not claim
- No claim that P. Hitesh & Co. uses the system in daily operation, how many people use it or since when. There is no client quote and no outcome figure.
- No claim of time saved, accuracy gained, yield improved or stock loss reduced.
- No live connections: Tally, WhatsApp, attendance devices, GIA or IGI certificates, Rapaport or other price lists and stock feeds are not connected, and the AI is rule-based, not an external language model.
- Figures, party names and staff names visible in the screenshots are illustrations of the screens and are not P. Hitesh & Co.’s business numbers.
- No claim about natural or lab-grown sourcing. The stock model carries a flag for it; what the firm trades is described on its own website.
- No rough-diamond planning, no marketplace feeds and no memo or jangad module in this build; for memo and buyer portals see our diamond software and trading platform pages.
A working version built by Yukti AI around the firm’s workflow. Anything not listed as built above is described as buildable, not as delivered.
Technology
The build uses Next.js 16 with React 19 and strict TypeScript, Tailwind CSS 4, Radix-based interface components, Lucide icons, Recharts for charts, Zod for validation, date-fns for dates and decimal.js for money and carat arithmetic. The business rules live in a pure service layer of functions that take the data, the user context and an input and return a result, so the same code can sit behind real backend APIs and a database. A transactional repository applies each action as a draft that is committed or rolled back, which is what keeps the books balanced.
For a production deployment we would move the data to a server database, enforce roles on the server, connect the approved providers and add backups and an audit trail outside the browser. That is the normal path from a working version to a live system, and it is the plan for any firm we build for.
What can be added next
- Slow-moving and dead-stock insights by lot age and sales history (compare our Arham Exports diamond trading ERP).
- WhatsApp Business API alerts for approvals, transit receipts and overdue payments.
- A language model behind the copilot for open-ended questions, grounded in the same records.
- Memo and consignment tracking, and a buyer-facing stock portal with holds and per-client prices (as in our Surat export-house platform).
- Certificate and price-list connections once provider accounts are agreed.
- Barcode or QR labels on parcels and packets, and a scanner-based count.
- A direct Tally connection or an import of historical vouchers for a full cut-over.
Features of diamond inventory management software, and which ones this assorting and custody build covers
Packaged diamond software is usually described in the same five groups: inventory and stock control, trading and sales, finance and reporting, diamond operations and certification, and integrations, mobile and security. This checklist uses those groups so you can compare any product, including a custom build, feature by feature. “Covered” means it exists in the P. Hitesh & Co. system; “Can be added” means it is not built and would be scoped with the client. Nothing is claimed as live that is not.
Inventory and stock control
The core of any diamond inventory management system is knowing what you hold, where it is and who has it.
| Feature | What it does | In this build |
|---|---|---|
| Lot and parcel stock with shape, size, colour, clarity and cost per carat | One record per lot with attributes, owned carats and pieces, value and QC status | Covered |
| Multi-location stock | Surat, Mumbai, in transit and export, with a tab per location | Covered |
| Custody by person and place | Vault, manager, sub-manager, sorter, assorting job, hold, transit: each carat in exactly one place | Covered |
| Movement ledger and audit trail | Append-only ledger of 26 movement types; a correction is a new movement with a reason | Covered |
| Assorting and split/mix with lineage | Parent lot to child lots with weight and cost carried across, plus a discrepancy hold | Covered |
| Stock check and tally | Daily closing compares expected with physical stock per manager and records variance | Covered |
| Barcode or packet-label scanning | Scan a packet to find or move a lot | Can be added |
| Memo, consignment and jangad out | Stock out on approval, with return dates and reconciliation. Quotations reserve stock today, but an out-on-memo status is not built; see memo and stock software in Surat | Can be added |
Trading, sales and pricing
Where the stock turns into invoices and receipts.
| Feature | What it does | In this build |
|---|---|---|
| Purchase and inward | Local, import, rough assortment and broker purchase types; accepted and rejected carats; tax treatment; creates the lot and the voucher | Covered |
| Quotations, orders and invoices | Domestic and export (LUT) invoices in INR, USD, HKD, EUR or AED; quotations reserve stock | Covered |
| Receipts and credit control | Receipts allocated to invoices; credit limit and payment terms per customer | Covered |
| Rapaport or price-list reference | A reference rate per stone or parcel for pricing; only an indicative rate per carat exists today | Can be added |
| Stock feed, website and marketplace upload | Publish stock to a website or marketplace; a private buyer portal with holds is shown in the diamond trading platform case study | Can be added |
| Broker commission slips | Brokerage on purchases and sales with commission statements. The broker purchase type exists; commission slips do not | Can be added |
Finance, tax and reporting
The part of a diamond ERP that usually decides whether it can replace Tally.
| Feature | What it does | In this build |
|---|---|---|
| Double-entry accounts | Chart of accounts, vouchers, general ledger, trial balance, profit and loss, balance sheet, cash flow, location-wise profit and loss | Covered |
| GST reports and bank reconciliation | GST reports and bank reconciliation with match candidates | Covered |
| Tally migration | CSV and Excel templates, ledger mapping and row validation; XML or API exchange is not live. See Tally integration | Covered |
| E-way bill and e-invoice on movements | Generate the documents when stock moves | Can be added |
Diamond operations and certification
Features specific to how diamonds are actually handled.
| Feature | What it does | In this build |
|---|---|---|
| Quality control | QC queue for purchase lots and assorting outputs; pass, hold, reject with sample pieces | Covered |
| Assorting jobs with reconciliation | Input minus outputs minus returns minus approved adjustments equals unexplained variance, sent to the discrepancy hold | Covered |
| Daily closing, discrepancies and approvals | Closing per manager, a discrepancy register, and an approval queue for transfers, adjustments, overtime and payroll | Covered |
| Attendance, overtime and payroll | Approved overtime only is paid; payroll runs with review and owner approval | Covered |
| Certificate fields and lab status (GIA, IGI) | Certificate number and lab status on each stone or parcel, lab issue and return; no live lookup is built | Can be added |
| Rough planning and yield planning | Plan a rough parcel before it is cut. Assorting yield variance is measured today; planning is not built | Can be added |
Integrations, mobile and security
What keeps the system safe and connected.
| Feature | What it does | In this build |
|---|---|---|
| Roles, permissions and audit log | Seven roles and 33 permissions; every posting and cancellation is logged | Covered |
| Approval policies | Required roles and priority per approval type | Covered |
| CSV and Excel in and out | Ledger and reports export to CSV; migration imports from CSV or Excel | Covered |
| Mobile app | Search stock and approve from a phone | Can be added |
| WhatsApp alerts to staff and buyers | The team chat is internal; WhatsApp Business API messages are set up at go-live | Can be added |
| API for websites and partners | A documented API for stock or orders | Can be added |
If a feature you need is not in this list, it is probably buildable: the point of a custom diamond ERP is that the feature list follows your workflow. Compare with the lot-costing and ageing approach in the Arham Exports diamond trading ERP, or read what to look for in jewellery and diamond ERP software.
Benefits of diamond inventory management software for a diamond house
Diamond software sellers usually promise better accuracy, fewer discrepancies, easier tracking, stronger traceability and faster decisions. Those are reasonable goals, but they are only worth anything if the design delivers them. This section ties each benefit to the part of the P. Hitesh & Co. build meant to deliver it. No measured results are published: none were supplied, so these are design intentions, not outcomes.
Know who holds which parcel
Every carat sits in one custody node, so “where is this parcel and since when” is a lookup, not a phone call. That is the main benefit of a custody tree over a stock list.
Catch a difference the same day
Daily closing compares expected with physical stock, and an assorting job cannot be reconciled without the unexplained variance being named and held against the custodian. Differences become cases, not silent write-offs.
Keep weight and value through assorting
Parent-child lots carry the carats and the cost across, so a finished assortment can be traced back to the purchase and the supplier.
See stock in transit instead of guessing
Surat to Mumbai transfers stay in a transit place until the receiving office acknowledges them, so stock is never counted in two cities or in none.
Accounts that agree with the stock
Because stock and accounts share one ledger, the build includes a check that the general ledger’s diamond inventory equals the stock ledger value. That removes a common month-end reconciliation.
Control over approvals, overtime and payroll
Transfers, adjustments, high-value sales, overtime and payroll go through an approval queue with required roles, and only approved overtime is paid.
A faster view for the owner
The dashboard and the rule-based AI daily report summarise stock, purchases, sales and collections, with shortcuts to unusual movements. The owner reads one page instead of asking each manager.
Related: how this differs from a plain stock list is covered in diamond ERP vs diamond inventory software vs Tally, and the costing and ageing view for traders is in the Arham Exports case study.
The same copilot pattern is mapped for a manufacturer in the owner’s AI assistant for a corrugated box plant.
What AI and automation can add to a diamond inventory system
The section above on the copilot describes what is inside this build. This is the wider menu for a diamond business, with an honest label on each idea: Built in our client systems (it exists in a Yukti AI build), Buildable by Yukti AI (we can build it on your own data once accounts and inputs exist) or Not realistic yet (we would not promise it).
| Idea | Status | Notes |
|---|---|---|
| Anomaly and loss detection in stock movements (repeated differences by one custodian, after-hours or very large hand-overs, parcels held for days) | Built in our client systems (this one) | Rule-based, computed from the movement ledger; thresholds are settings |
| Assorting yield and productivity comparison | Built in our client systems (this one) | Real yield norms from the client are needed to set targets |
| Daily MIS digest to the owner | Built in our client systems (this one) | A templated narrative from live figures; a language model could vary the wording while the numbers stay computed |
| Slow-moving and dead-stock alerts | Built in our client systems (another one) | Ageing buckets and fast/slow/dead rules exist in the Arham Exports ERP; not in this build |
| Stock-enquiry bot on WhatsApp over the live stock | Buildable by Yukti AI | Grounded on stock so it cannot invent a stone; needs the WhatsApp Business API and approved templates. See WhatsApp automation |
| Memo-return and hold-expiry reminders | Buildable by Yukti AI | Needs a memo workflow first; the reminder is then a scheduled message |
| Payment reminders by WhatsApp or voice call | Buildable by Yukti AI | Overdue receivables already exist; add a channel, consent and scripts. See voice AI payment reminder calls |
| Certificate (GIA, IGI) data extraction from PDFs or images | Buildable by Yukti AI | Extract the report number and grading fields, verify against the lab’s own lookup, and let a person confirm before saving |
| Invoice and packing-list reading into purchase entries | Buildable by Yukti AI | Document extraction plus a review screen; never auto-posting |
| Auto descriptions and listings for a website or stock feed | Buildable by Yukti AI | Generated only from stored attributes, with no invented grading |
| Price-versus-market flags | Buildable by Yukti AI | Needs a price source agreed with the client; a flag, not a valuation |
| Workflow automation between systems (n8n) | Buildable by Yukti AI | Daily stock file to ERP, approvals to WhatsApp, reports to e-mail. See workflow automation in Surat |
| Demand and price forecasting | Not realistic yet | Demand needs two or more years of clean history; price prediction needs market data we would not claim to beat |
| Image-based grading or stone recognition | Not realistic yet | Specialist scanning hardware and vendors, not something an ERP should pretend to do |
| AI posting stock, accounting or payroll on its own | Not realistic and not advisable | Both of our diamond ERPs only recommend; a person approves anything that moves stock or money |
For the wider picture see AI automation for diamond and jewellery businesses in Surat, AI ERP and ERP-connected AI agents.
How much does a diamond ERP cost, and how long does it take?
Yukti AI does not publish a price list, because the price follows the scope. Two lines are approved and can be stated plainly: a custom ERP from Yukti AI starts from ₹30,000, and a first working version is typically ready in about 7–10 days. A full diamond ERP of this breadth — custody, assorting, workforce, accounts and AI — is toward the larger end of what we build, and its quote depends on the factors below.
- How many modules you need first (stock and custody only, or payroll and accounts too).
- How many places and roles: Surat only or Surat, Mumbai and export; how many custodian levels.
- Migration: how much Excel or Tally data must come across and how clean it is.
- Integrations: WhatsApp, attendance devices, certificate and price providers.
- Hosting, security and support expectations after go-live.
The way to start is a free workflow audit: you show us how a parcel moves today, we show what one system would replace, and you get a custom quote. See custom ERP software cost in India for the general drivers and contact us to book the audit.
Can Yukti AI build this for another diamond business?
The same custody-and-lineage pattern fits other businesses that hold goods that change hands and form: polished diamond wholesalers, sorting and assorting units, diamond manufacturers with factory floors, export houses, and brokers who hold goods on trust. Close relatives are jewellery manufacturers (metal and stone ledgers) and other lot-based trades.
Start with a free workflow audit. See Diamond Software in Surat, Manufacturing ERP Software and AI for manufacturing, or read how we built a similar traceability thread for a garment manufacturer and a label printer.
Diamond inventory management ERP: questions diamond businesses ask
Explore more
Diamond Software in Surat
Trading, stock and memo software for Surat diamond firms.
AI Automation for Diamond & Jewellery
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Case study: Arham Exports
A lot-wise diamond trading ERP with AI inventory insights, broker scores and CRM.
Case study: diamond trading platform
A private portal, holds and per-buyer prices for a Surat export house.
Case study: Lumera jewellery system
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Jewellery ERP, CRM and catalogue software.
Choosing jewellery ERP software
A checklist of what to look for and what to avoid.
Custom ERP Software in Surat
ERP built around how your Surat business actually runs.
AI ERP
ERP with an AI layer that reads your data and briefs the owner.
Replace Excel & Tally
Move off spreadsheets and ledger-only software in stages.
Manufacturing ERP Software
Production, material and costing for Indian manufacturers.
All case studies
Every Yukti AI build across diamond, jewellery, manufacturing and trading.
Summary
Yukti AI built a diamond inventory management ERP for P. Hitesh & Co., a Surat diamond house trading loose polished diamonds. Stock is never an editable number: balances are folded from an append-only movement ledger, and each carat sits in exactly one custody node (vault, manager, sub-manager, sorter, assorting job, hold, transit or export). Assorting is a controlled job that reconciles input, outputs, returns and approved adjustments, sends unexplained variance to a discrepancy hold, creates child lots with the parent cost carried across, and keeps a lineage tree. Surat-Mumbai transfers stay in transit until receipt is acknowledged; export shipments, daily closing with approvals, attendance, approved overtime and payroll, GST and export invoicing and double-entry accounts share one ledger, with a rule-based AI copilot recommending what to check. It is a working version built around the firm’s workflow; provider, Tally, WhatsApp and device connections are configured at go-live, and usage and results are not claimed. A custom ERP from Yukti AI starts from ₹30,000 with a first version in about 7–10 days.