Service businesses have different ERP needs from manufacturers. This guide covers what a services-focused ERP should do — and how Indian consulting, IT, and professional services firms can benefit.
Zoplax Team
ERP Specialists · Manufacturing & Logistics Experts
Manufacturing and trading businesses deal in physical goods — purchase, hold, sell. Their ERP needs centre around inventory, production and dispatch.
Services businesses deal in time, expertise and outcomes. A consulting firm does not have inventory. An IT services company does not dispatch goods. But they still have:
Every client has ongoing projects or retainer agreements. ERP should track: - Client contact and billing details - GSTIN (for B2B billing) - Current outstanding balance - Payment history
Service businesses often quote before a project begins and invoice at milestones or monthly. The workflow: Enquiry → Quotation → Agreement → Milestone Invoice → Payment
Zoplax supports this via: - Enquiry with customer, service type, budget - Quotation with line items (service description, hours, rate, GST) - Convert quotation to sales order → generate invoice
Service businesses must assign SAC (Services Accounting Code) codes to each type of service, just as product businesses use HSN codes. Common SAC codes:
Zoplax supports SAC codes on service product entries. All service invoices include the correct SAC code and GST rate.
When your client is a registered company, they deduct TDS before paying you: - Professional services: 10% TDS (Section 194J) - Consulting: 10% TDS - Technical services: 2% TDS (Section 194C)
The invoice amount may be ₹1,18,000 (including GST) but you receive ₹1,00,000 after 10% TDS. In Zoplax, TDS details are recorded on payment receipt — the TDS report tracks all TDS deducted by clients for Form 16A / 26AS reconciliation.
Service businesses incur project-related expenses: travel, accommodation, communication, subcontractor fees. Tracking these against each project shows the true project margin.
Zoplax records expenses with GST (for ITC-eligible expenses like business travel) and category codes.
Late payment is common in services, especially from large corporate clients. The outstanding dashboard, ageing report and payment follow-up workflow in Zoplax apply equally well to service businesses.
An IT services firm in Chennai bills clients monthly for managed services and project work. In Zoplax:
The entire workflow is handled in one system — no Excel, no Tally, no separate TDS tracker.
Service businesses across Chennai and India use Zoplax for end-to-end client billing. Start your free trial today.
GST updates, inventory tips, manufacturing insights — straight to your inbox. Practical, not promotional.
No spam. Unsubscribe anytime.
Written by Zoplax Team
ERP Specialists with experience in manufacturing, logistics and GST compliance for Indian SMEs. Based in Chennai, India.
30-Day Free Trial · No Credit Card
Join hundreds of Indian manufacturers, traders and logistics businesses who run their entire operations on Zoplax — inventory, GST, manufacturing, logistics and HR in one cloud platform.
India has 63 million MSMEs — and most still manage their manufacturing operations on Excel sheets, paper registers, and WhatsApp messages. Here is why cloud ERP is the game-changer they need.
Read article →AccountingGST filing is a monthly headache for most Indian businesses. ERP software can reduce the time spent on GST preparation from days to minutes. Here is how.
Read article →ManufacturingSmall manufacturers across India face common operational challenges that limit their growth. We break down the top 5 problems and how modern ERP software solves each one.
Read article →GST GuideFiling GST yourself does not have to be complicated. This step-by-step guide shows how to use Zoplax ERP to prepare and file your GSTR-1 without a CA.
Read article →