Furniture and furnishing stores: custom orders and advances

How furniture stores buy and sell

Furniture stores source from several channels: factory-made furniture from manufacturers, imported pieces through traders, and custom pieces from their own or partner workshops. Furnishing stores add curtains and upholstery fabric, blinds, rugs, mattresses, bed linen and wallpaper. Many stores sell both off the floor and to order.

Customers are homeowners setting up a new house, families shopping for a wedding, interior designers furnishing several projects, and businesses buying for offices, hotels or hostels. Designers often expect trade pricing, and some stores pay a referral fee.

Display, orders and lead times

A sofa on display is not usually what the customer takes home. They choose the model, the fabric or leather, the size and the colour, and the store places an order with the workshop or supplier. Lead times range from days for stocked items to several weeks for custom work. The order book, not the stock register, is the heart of the business.

Track every order with the customer, the specification, the advance taken, the promised date, and the supplier's order reference. When a workshop delay pushes delivery, call the customer before they call you. Read sales orders versus purchase orders to see how linking the two keeps custom orders under control.

Advances and part payments

Most custom orders start with an advance, often a significant share of the price, and the balance on delivery. Advances are the customer's money until the goods are delivered, so they should never disappear into general cash. Record every advance against the customer in Tally, and match it to the invoice when the goods are delivered.

GST may apply at the time an advance is received for certain supplies; see GST on advances and confirm with your accountant.

Furnishings: measurements and fabric

Curtains, blinds and upholstery are measured at the customer's home, so the order depends on accurate measurements. Fabric is sold by the metre, stitching is a service charge, and fittings such as rods and tracks are separate items. Write all three on the quotation so the customer sees what they are paying for, and keep the measurement sheet with the order. A wrong measurement usually means the store absorbs the cost.

Delivery, fitting and after-sales

Large furniture needs delivery and sometimes assembly. Wardrobes and modular units need fitting at site. Schedule deliveries with a delivery challan signed by the customer, and note any damage at the time. After-sales calls, such as a loose hinge or a recliner mechanism, should be recorded as service jobs so they are closed and, where chargeable, billed.

Display pieces should be reviewed every few months. A piece that has been on the floor for a year is worth less than its book value; sell it as a floor model before it becomes unsaleable.

GST points for furniture stores

Furniture, mattresses, fabrics, curtains and fittings come under different HSN codes, and stitching or installation charges are services that may be taxed differently from the goods. Rates on some of these items have been revised, so check the current rate for each on the GST portal. Interior designers and businesses who are registered need their GSTIN on bills. This is general information, not tax advice.

Cashflow OS for furniture and furnishing stores

Cashflow OS works with your TallyPrime books. Showroom staff look up walk-ins by mobile number and see past visits and wishlists, with interest marked hot, warm or cold. Item photos help customers recall the model they liked. Quotations and proforma invoices with your logo, bank and UPI details go out on WhatsApp, and a quotation converts into a sales order or Tally invoice. Service jobs handle after-sales repairs. Customer advances and dues show on the phone. See proforma invoices for advance requests.