Old Gold Exchange and Hallmark Records for Nepali Shops

Most disputes at a jewellery counter are not about the new ornament. They are about what happened to the old one: how much it weighed, what the test showed and what deduction was agreed. A written record made at the time settles these conversations in seconds. This guide describes what to record and how software helps, as a matter of record keeping rather than legal or tax advice.

Why old gold exchange needs its own record

When a customer exchanges old gold, three things happen at once: you take in metal, you give credit, and you sell something new. If all three are squeezed into one line of the bill, you lose the ability to say later what you actually received. For your stock this matters too. The old gold is now your inventory, often in a melted or scrap form, and it must appear in the stock tally or the daily weight will not reconcile.

What to write down every time

• Date, in Bikram Sambat, and the customer name and phone number.
• Description of the old item and whether it came from your shop or elsewhere.
• Gross weight, and the weight of any stones removed or ignored.
• Purity test result and the method used, for example a touch test or machine reading.
• The deduction agreed and its reason, such as wastage or impurity.
• The net value credited and the bill it was adjusted against.
• The staff member who handled the exchange.

A software record keeps all of these in fields, so you can search "all exchanges by this customer" or "all exchanges last month" without turning pages.

Keeping hallmark details with the item

Where a shop sells hallmarked jewellery, the hallmark mark or number belongs on the item record. Software lets you store it against the tag and print it on the bill, so the customer can match the stamp on the piece to the paper. What hallmarking is required, who may issue it and what it must show are matters for the official standards authorities in Nepal. Confirm the current requirements with them directly. The software's job is only to store whatever your shop uses and display it consistently.

If the same ornament comes back later for repair or exchange, the hallmark record also helps you identify that it came from your shop.

Handling the exchanged metal in stock

Treat received old gold as a stock item of its own. Record it as scrap or old metal with weight and purity. When you later send it to a karigar to be melted into new work, the issue entry reduces scrap stock and the returned finished pieces enter as new tagged items. This chain is how closing stock stays honest: nothing appears from nowhere and nothing vanishes into "adjustment".

VAT and exchange: ask your accountant once

How VAT at 13% treats exchanged old gold, and which part of a mixed bill is taxable, is a question for your accountant or the Inland Revenue Department. Get the answer in writing once, and then set the software to follow it. The advantage of software is not that it knows the rule for you but that it applies your confirmed rule the same way on every bill.

Gold bought from the public and from other traders

Shops also buy gold outright from customers who are not purchasing anything, and some buy from other traders. These are separate from an exchange against a new ornament, and they should have their own purchase entry with the seller's name, citizenship or identity detail where you collect it, weight, test result and the price paid. Which identity details you must collect, and any reporting that applies, are questions for the relevant authorities and your adviser. Your software can hold the fields, but the rules come from them.

Keeping outright purchases separate from exchanges makes the stock tally cleaner, and it makes a later audit far less stressful because each entry says plainly what it is.

Why a good record protects staff too

A dishonest accusation can hurt an honest employee. When every exchange has a date, weight, test result and the name of the person who handled it, the record answers questions fairly. Owners often find that a clear system improves the mood at the counter, because nobody is guessing who made a mistake.

Customer-friendly practice

Print or show the exchange record to the customer before they sign off the bill. A short slip showing weight, test result, deduction and credit builds trust, and it is rare that a customer who has seen the numbers comes back to argue. If you offer to send the slip by WhatsApp, the customer has their own copy and you have the sent message as another trace.

Common gaps to close

Gap	Result	Fix
No test result written	Dispute over purity	Mandatory test field
Exchange mixed into sale line	Stock does not tally	Separate exchange entry
Hallmark not stored	Cannot trace returns	Hallmark field on tag
No staff name	No accountability	User login on each entry

Next step

Take your last five old gold exchanges from the notebook and see whether you can answer the list above for each. If not, a record-driven system will help. See the jewellery shop software page or message us on WhatsApp for a demo. Shops that also lend against ornaments may want to look at our loan management software too.

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