How to use rolling margin while billing?
- Thread starter ashok
- Start date
Dnyan Deshmukh
Staff member
Rolling margin is term related to reinforcement steel Quantity adjustment
When steel comes at site, its weight per meter is checked and compared with standard weights for each diameter.
Steel either be correct, overweight or underweight.
Base on the nominal mass tolerance limit, steel is accepted or rejected.
When steel is accepted - In most of the cases steel is issued to contractor on meter or number of bar basis i.e. - we account total length of bar issued to contractor.
After consumption of steel, it is reconcile with details of issued steel in Metric Tone
Consumed Quantity in Metric Ton (Calculated theoretically by assuming steel is received as per standard weight and bar dimensions)
Remaining or balance stock quantity.
To ensure correct reconciliation, steel stock is adjusted to standard weight, so that issued bar matches with consumption and balance stock.
To make this possible, rolling margin is done.
What happens in process of rolling margin
Say you received 10 tons of steel at site and it is 3% underweight.
As per the weight measurement steel is 10 ton but it has 3% under-mass which is acceptable as per the tolerance limits.
When steel is underweight, it indicates that, there is reduction in diameter which causes it to loose weight.
So the quantity of steel by weight will be 10 tones but if you measure its length it will be more than that of standard length for 10 tones of bars.
So to solve this issue we convert the length of bar into ton.
In rolling margin we roll down the actual received quantity of steel to match its length so that steel reconciliation becomes easier and billing process happens in correct way.
Rolling margin sheet have following columns in it (do search on forum, you will find the format of rolling margin)
Date | Dia of Bar | Quantity Received as per challan | Average weight per meter at actual | standard weight per meter | Difference in % between actual and standard | Quantity of steel after rolling margine
Quantity received is used for payment of supplier
Quantity of steel after rolling margin is used for reconciliation and billing of contractor.
So in above example we received 10 tone steel which is 3% underweight
Steel Quantity Received = 10 MT (will be used for payment of supplier / manufacturer)
So quantity after rolling margin will be 10.3 Metric Ton (will be used for reconciliation and billing).
This is how rolling margin works.
Now take reverse case - steel is underweight
though you received 10 MT of steel but as its overweight actual number of bars will be less - at the time of reconciliation we will ask contractor about lost quantity of steel which cant be reconcile (as you get less number of bar due to overweight, you cant show them physically).
Rolling Margin helps to make reconciliation easier and hence billing process easier.
It also indicate the quality of steel supplied by each supplier along with losses or gain in quantity of steel and also help to choose best supplier of steel to get benefited.
Mostly all primary steel manufacturer does manufacturing of steel near to standard weight or under weight within tolerance limit specified.
Secondary steel manufacturer might not obey the tolerance limit and may supply you overweight steel (all depends on the setup and quality control they have at their manufacturing set up)
Hope you understand the purpose and benefits of doing rolling margin of steel
When steel comes at site, its weight per meter is checked and compared with standard weights for each diameter.
Steel either be correct, overweight or underweight.
Base on the nominal mass tolerance limit, steel is accepted or rejected.
When steel is accepted - In most of the cases steel is issued to contractor on meter or number of bar basis i.e. - we account total length of bar issued to contractor.
After consumption of steel, it is reconcile with details of issued steel in Metric Tone
Consumed Quantity in Metric Ton (Calculated theoretically by assuming steel is received as per standard weight and bar dimensions)
Remaining or balance stock quantity.
To ensure correct reconciliation, steel stock is adjusted to standard weight, so that issued bar matches with consumption and balance stock.
To make this possible, rolling margin is done.
What happens in process of rolling margin
Say you received 10 tons of steel at site and it is 3% underweight.
As per the weight measurement steel is 10 ton but it has 3% under-mass which is acceptable as per the tolerance limits.
When steel is underweight, it indicates that, there is reduction in diameter which causes it to loose weight.
So the quantity of steel by weight will be 10 tones but if you measure its length it will be more than that of standard length for 10 tones of bars.
So to solve this issue we convert the length of bar into ton.
In rolling margin we roll down the actual received quantity of steel to match its length so that steel reconciliation becomes easier and billing process happens in correct way.
Rolling margin sheet have following columns in it (do search on forum, you will find the format of rolling margin)
Date | Dia of Bar | Quantity Received as per challan | Average weight per meter at actual | standard weight per meter | Difference in % between actual and standard | Quantity of steel after rolling margine
Quantity received is used for payment of supplier
Quantity of steel after rolling margin is used for reconciliation and billing of contractor.
So in above example we received 10 tone steel which is 3% underweight
Steel Quantity Received = 10 MT (will be used for payment of supplier / manufacturer)
So quantity after rolling margin will be 10.3 Metric Ton (will be used for reconciliation and billing).
This is how rolling margin works.
Now take reverse case - steel is underweight
though you received 10 MT of steel but as its overweight actual number of bars will be less - at the time of reconciliation we will ask contractor about lost quantity of steel which cant be reconcile (as you get less number of bar due to overweight, you cant show them physically).
Rolling Margin helps to make reconciliation easier and hence billing process easier.
It also indicate the quality of steel supplied by each supplier along with losses or gain in quantity of steel and also help to choose best supplier of steel to get benefited.
Mostly all primary steel manufacturer does manufacturing of steel near to standard weight or under weight within tolerance limit specified.
Secondary steel manufacturer might not obey the tolerance limit and may supply you overweight steel (all depends on the setup and quality control they have at their manufacturing set up)
Hope you understand the purpose and benefits of doing rolling margin of steel
Srinivasan
Prime CE
Similar threads
