Textile Technology
How to Calculate Textile Lot Profit
Lot profit is the invoice for that lot minus what the lot consumed. It sounds obvious. It is wrong whenever rework, party yarn or a second process sits in a different register from the bill.
9 min read ·
Put the commercial events on the lot
You need four numbers that share an identity: material issued or party material you are accountable for, process cost including outside job work, extra cost from rework or rejection, and the amount you actually billed. Average factory overhead can be applied later. Do not start there.
Knitting
Own yarn at its purchase cost, or party yarn at zero material cost if you only earn a knitting charge. Loss is not a percentage you type — it is yarn issued minus fabric out, valued at the yarn cost when the yarn was yours. The bill is the fabric sale or the knitting wage.
Dyeing
Chemical and dye at issue cost, machine time if you track it, and a reprocess as extra cost on the same batch. Revenue is the process bill on delivered weight. A shade that was redone can show a loss even when the final shade was accepted.
Garments
Fabric and trims issued to the order, making charges, rejection, and the invoice for cartons dispatched. Size-wise shortages matter because a missing size can cancel the margin on a style the cutting report called complete.
What to ignore at first
A perfect activity-based overhead model. If material, rework and the invoice are not on the lot, overhead will only make a wrong number look precise. Yulogo’s textile ERP is built to hold those four numbers. The costing conversation starts there.
Frequently asked questions
Should party material be in the cost?
Not as your material cost if you do not own it. It still has to be reconciled in quantity. Your profit on that lot is the process charge minus the cost you actually incurred, including rework.
See the system on your own process
Tell us how your unit runs today — knitting, dyeing, printing, garments or mill. We walk the ERP through your workflow and reply with scope, timeline and cost.
Usually responds within one business day.