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🌾 Agro Processing · Rice Mills · Dal Mills · Oil Mills · Tamil Nadu

ERPNext for Agro Processing — Rice Mills, Dal Mills and Oil Mills in Tamil Nadu.

PS Digitise implements ERPNext for agro processing businesses across Tamil Nadu and South India — paddy to rice conversion BOM with bran and husk by-products, moisture loss accounting, gunny bag inventory tracking, procurement agent commission and multi-mill live stock visibility. Fixed price. 8-week go-live.

✓
Paddy-to-rice conversion BOM — bran and husk by-products auto-accounted
✓
Moisture loss accounted via Stock Reconciliation — not a manual Excel entry
✓
Gunny bag inventory — outstanding bags per agent tracked, ₹4L+ recovered
✓
All mills visible on one dashboard — no morning phone calls to each location
✓
GST correct per agro product — paddy exempt, rice 5%, bran 0% — auto-applied
50+ implementations · India
From ₹1,75,000 · fixed price
8 weeks go-live
₹0 software licensing
Get Free Assessment → 💬 WhatsApp
ERPNext · Manufacturing › Conversion Batch · RMB-2026-0412
Conversion Live
Paddy → Rice Conversion · Batch RMB-2026-0412 · 21 Oct 2026
ItemTypeStd QtyActual QtyVariance
Paddy (Raw) · IR-64Input100 qtl100 qtl—
Rice (Boiled) · IR-64Output67 qtl66.2 qtl-0.8 qtl
Rice BranBy-product7 qtl7.1 qtl+0.1 qtl
Paddy HuskBy-product20 qtl20 qtl—
Moisture LossLoss6 qtl6.7 qtl+0.7 qtl
66.2%
Actual milling yield
Auto
By-products accounted
₹0
Manual Excel work
Problems we fix for agro processors

Six problems every rice mill, dal mill and oil mill in Tamil Nadu faces.
ERPNext fixes all of them.

Agro processing has unique challenges — conversion yield tracking, moisture loss, by-product valuation, procurement agent settlements and seasonal stock patterns. ERPNext handles all of them natively.

❌ Right now
Paddy purchased at one rate, rice sold at another. Bran and husk by-products not valued. Actual milling cost per quintal of rice unknown. Margin calculated once a year.
✓ After ERPNext
Conversion BOM — paddy input, rice output, bran and husk by-products. Actual conversion cost tracked per milling batch. Margin per quintal visible at any time.
Milling cost per batch
❌ Right now
Moisture loss during paddy storage not accounted for. Physical stock always lower than system stock. Month-end difference unexplained. Accounts team frustrated every reconciliation.
✓ After ERPNext
Moisture loss% configured per item per season. Stock Reconciliation accounts for evaporation. Difference posted to Moisture Loss account in P&L. Explained, documented, auditable.
Moisture loss accounted
❌ Right now
Gunny bags issued to procurement agents for paddy collection never reconciled. 800 bags outstanding worth ₹4L+ — only discovered during physical count once a year.
✓ After ERPNext
Gunny bag tracked as inventory item. Issued to agent at procurement. Returned with paddy. Balance report shows outstanding bags per agent. Follow up done — recovery in 60 days.
₹4L+ recovered by client
❌ Right now
Commission to procurement agents calculated manually in Excel. Errors in rate, quantity and deductions. Agent disputes every settlement. Takes 2 days per agent.
✓ After ERPNext
Commission rate per agent per paddy grade configured in ERPNext. Auto-calculated on every purchase. Agent ledger shows outstanding balance. Settlement in minutes.
Commission auto-calculated
❌ Right now
GST on agro products unknown to billing staff — paddy exempt, rice 5%, bran 0%. Wrong rates applied. GSTR-1 errors every month. Penalty risk.
✓ After ERPNext
GST rate configured per item — paddy, rice, bran, husk each carry correct rate. Applied automatically on every invoice. Zero billing errors. GSTR-1 JSON ready for portal.
Auto GST per item
❌ Right now
Multiple mills — head office calls each mill manager every morning for paddy stock. No live visibility. Inter-mill transfers on paper, never reconciled.
✓ After ERPNext
Each mill as a separate warehouse in ERPNext. MD sees live paddy and rice stock across all mills on one dashboard. Inter-mill transfers documented and accounted automatically.
All mills, one screen
End-to-end agro processing flow

From paddy procurement to rice sale — every step connected in ERPNext.

Every transaction updates stock, accounts and compliance records simultaneously. No Excel stock register. No manual agent ledger. No separate Tally reconciliation.

1
Paddy Procurement
Agent → GRN → Grading → Commission
1
🌾
Purchase Order to agent
Paddy variety, grade, target quantity and procurement rate agreed with agent.
Agent + variety
2
🚛
Paddy arrives — GRN
Paddy weighed at mill gate. Grade recorded (A, B, C). Moisture content measured. Gunny bags returned to store.
Grading + moisture
3
💰
Commission auto-calculated
Agent commission calculated on quantity at configured rate per grade. Agent ledger updated immediately.
Auto commission
4
📦
Paddy in store
Stock visible across all mills immediately. Moisture loss% applied at configured intervals via Stock Reconciliation.
Moisture accounted
2
Milling — Conversion
Paddy → Rice + Bran + Husk
5
🏭
Milling Work Order
Paddy quantity to mill entered. Conversion BOM defines expected rice, bran and husk output per quintal.
Conversion BOM
6
⚙️
Paddy issued to milling
Paddy stock decreases from paddy warehouse. Milling in progress.
Stock issued
7
🌾
Outputs received
Actual rice, bran and husk quantities entered. Variance vs BOM standard calculated and posted.
Yield variance
8
📊
COGM and by-products posted
Cost of milling posted to rice, bran and husk proportionally. By-product value in accounts automatically.
COGM auto
3
Rice and By-product Sales
Sales → GST → GSTR-1
9
📋
Sales Order — rice variety
Trader or retailer order. Rice variety, grade, quantity and delivery date. Gunny bags issued for delivery.
Variety + grade
10
📤
Delivery Note + e-Way Bill
Stock decreases. e-Way Bill for inter-state rice movement above ₹50,000 generated from Delivery Note.
e-Way Bill auto
11
🧾
Sales Invoice — correct GST
Rice at 5%, bran at 0%, husk at 0%. GST applied automatically per item. Revenue posted to accounts.
Auto GST per item
12
📊
GSTR-1 JSON ready
GSTR-1 from Sales Invoices. B2B with trader GSTIN, B2CS, HSN summary. JSON export to GST portal.
GSTR-1 auto
ERPNext modules for agro processing

Every module your rice mill or agro business needs — at ₹0 licensing.

All modules are included in the base ERPNext licence. No per-mill or per-module fee.

Conversion BOM — paddy to rice with bran and husk by-products
A Conversion BOM in ERPNext defines the standard yield for each paddy variety — how many quintals of rice, bran and husk are expected from 100 quintals of paddy. When a milling batch Work Order is completed, actual quantities are entered. Variance vs standard is calculated and posted automatically.
✓
BOM per paddy variety — IR-64, Sona Masoori, Ponni, Basmati — each with its own conversion ratio
✓
By-product quantities in BOM — rice bran and paddy husk defined as outputs at standard yield
✓
Actual vs standard yield — actual rice output vs BOM standard. Yield loss posted to Yield Loss account automatically.
✓
By-product valuation — bran and husk valued at market rate. Added to inventory and accounts at milling completion.
✓
COGM per batch — cost of milling allocated between rice, bran and husk proportionally based on output quantities
ERPNext · Manufacturing › BOM · Paddy IR-64 → Rice (Boiled)
Active
Conversion BOM — IR-64 Paddy → Rice (Boiled) · Per 100 quintals input
ItemTypeStandard QtyUOMCategory
IR-64 Paddy (Raw)Input100QuintalRaw Material
IR-64 Rice (Boiled)Output67QuintalMain Product
Rice BranBy-product7QuintalBy-product
Paddy HuskBy-product20QuintalBy-product
Moisture + LossLoss6QuintalYield Loss
67%
Rice yield (standard)
27 qtl
By-products (bran+husk)
Auto
COGM allocation
Moisture loss accounting — Stock Reconciliation
Paddy stored in gunny bags loses moisture over time. ERPNext accounts for this through Stock Reconciliation — the system stock is reduced to the actual physical quantity after accounting for evaporation. The difference is posted to a Moisture Loss account in the P&L. This is done at configured intervals — weekly, fortnightly or monthly.
✓
Stock Reconciliation — actual counted quantity entered. System adjusts stock to physical quantity.
✓
Moisture Loss account — difference posted to a dedicated P&L account. Visible in financial reports.
✓
Configurable intervals — weekly, fortnightly or monthly reconciliation depending on storage method
✓
Variety-wise moisture loss — different moisture loss% for paddy vs milled rice vs bran. All tracked separately.
✓
Audit trail — every reconciliation entry timestamped with quantity before and after. CA-auditable.
Procurement — agents, grading and gunny bags
Paddy procurement involves multiple agents each bringing different grades of paddy. ERPNext tracks every purchase by agent, grade and moisture content. Agent commission is auto-calculated per purchase. Gunny bags issued for collection are tracked as inventory — outstanding bags per agent visible at any time.
✓
Purchase per agent per grade — Grade A, B, C with different rates. Agent recorded on every purchase.
✓
Moisture content at GRN — moisture % recorded. Rate deducted per mill's moisture premium/discount policy.
✓
Agent commission auto-calculated — rate per qtl per grade configured. Commission appears on Purchase Invoice automatically.
✓
Gunny bag inventory — bags issued to agents tracked. Returned bags reduce outstanding. Balance report per agent.
✓
Agent ledger — outstanding payments, advances and commission balances per agent. Settlement in minutes.
Multi-mill — live stock across all locations
Each mill or processing unit is configured as a separate warehouse in ERPNext. Live stock across all locations visible on one dashboard. Inter-mill paddy transfers documented as Material Transfer Stock Entries — no more untracked paper challan movements.
✓
Each mill as a separate warehouse — Mill 1 Trichy, Mill 2 Thanjavur, Mill 3 Kumbakonam all separate
✓
Consolidated stock dashboard — MD sees paddy and rice stock across all mills from one screen, live
✓
Inter-mill transfer — paddy sent from one mill to another via Material Transfer Stock Entry. Documented, accounted.
✓
Mill-wise P&L — revenue and costs per cost centre. Profit per mill visible separately.
✓
No per-mill licence fee — unlimited mills in the same ERPNext instance
GST — agro product tax structure
Agro product GST is complex — paddy is GST-exempt, rice at 5%, bran and husk at 0%, rice flour at 5%. Each item in ERPNext carries its own HSN code and GST rate. Applied automatically at every Sales Invoice. GSTR-1 generated from invoices — zero manual preparation.
✓
Paddy — GST-exempt (Chapter 10, HSN 1006). Correct nil-rated treatment on purchase invoices.
✓
Rice — 5% GST for branded rice (Chapter 10, HSN 1006). 0% for unbranded. Both configurations supported.
✓
Rice Bran and Husk — 0% GST. Correct treatment on sales invoices automatically.
✓
e-Way Bill — for inter-state rice and by-product movement above ₹50,000. Generated from Delivery Note.
✓
GSTR-1 JSON export — B2B with trader GSTIN, B2CS for direct consumers, HSN summary. Upload to GST portal directly.
Accounts and P&L — perpetual inventory
Every paddy purchase, milling conversion and rice sale updates the accounts simultaneously in ERPNext. No separate Tally entry. Stock value always matches accounts. P&L visible at any time — not just at month-end after 3 days of reconciliation.
✓
Perpetual inventory — every purchase receipt and sale posts to the ledger at the same time
✓
By-product revenue — bran and husk sales posted to by-product revenue account. Separate P&L line.
✓
Moisture Loss account — evaporation expense visible in P&L by month
✓
Agent commission expense — posted to procurement cost account per agent per purchase
✓
Month-end in 4 days — P&L, Balance Sheet and stock valuation always current. No Tally reconciliation.
ERPNext vs alternatives for agro processors

Why Tamil Nadu agro processors choose ERPNext over Tally and rice mill software.

Standalone rice mill software handles milling but not accounts. Tally handles accounts but not conversion BOM. ERPNext does both at ₹0 licensing.

RequirementERPNext + PS DigitiseTally PrimeRice Mill Software (standalone)
Paddy → Rice conversion BOM✓ Native with by-products and yield tracking✗ Not available✓ Core feature
By-product accounting (bran, husk)✓ BOM output · auto-valued at market rate✗ Manual journal onlyPartial — varies by product
Moisture loss accounting✓ Stock Reconciliation · P&L postingManual journal — no integrationSome products
Gunny bag inventory tracking✓ Native inventory item · agent reconciliation✗ Not availableSome products
Procurement agent commission✓ Auto-calculated per purchase per agent✗ Manual calculationSome products
Multi-mill live stock visibility✓ All mills · one dashboard · liveSeparate Tally companiesLimited consolidation
GST — agro rates✓ Paddy exempt, rice 5%, bran 0% — auto✓ NativeVaries — often basic
Accounts + P&L integrated✓ Perpetual inventory — no separate Tally✓ Accounting-firstExport to Tally required
5-year software cost₹0 — open source₹18,000/year₹30,000–₹80,000/year
ImplementationFrom ₹1,75,000 · fixed priceN/A₹50,000–₹1,50,000
Client results

Agro processing businesses — real results after ERPNext.

₹4.2L
Gunny bag loss recovered · tracked from Day 1
"We never knew how many bags were with agents. ERPNext showed 840 bags outstanding worth ₹4.2 lakhs. We recovered all of them in 60 days."
Rice Mill · Tamil Nadu · 3 processing locationsMD · ERPNext Phase 1 + Bag Inventory Tracking
Live
Paddy stock visible across all 3 mills · real time
"Before ERPNext, I called each mill manager every morning for stock. Now I open ERPNext and see all 3 mills on one screen. Morning calls stopped."
Dal Mill Group · Trichy region · 3 millsOperations Head · ERPNext Multi-mill configuration
Zero
GST errors on agro products · all rates auto-applied
"Our CA flagged 5 GSTR-1 errors per month from wrong GST rates on paddy and rice. ERPNext configured per item — zero errors since Day 1."
Rice Mill and Trader · Tamil NaduAccounts Manager · ERPNext GST configuration
Fixed price · No surprises · 2026

ERPNext software: ₹0 forever. PS Digitise implements it — fixed price.

ERPNext is open source — ₹0 licensing. The prices below are PS Digitise's implementation fee. Fixed price confirmed in writing before we start.

Phase 1 — Accounts + Procurement + GST
₹1,75,000
8–10 weeks · one-time
Chart of accounts for agro processing
Paddy and rice item masters with HSN codes and GST rates
Procurement — agent, grade and moisture content at GRN
Gunny bag inventory tracking per agent
Agent commission auto-calculation
GST — exempt, 5% and 0% per agro item
Tally data migration — zero data loss
1 month post-launch support
Phase 1 + Milling + Multi-mill
₹2,25,000
10–12 weeks · one-time
Everything in Phase 1
Conversion BOM per paddy variety — rice, bran, husk outputs
Milling Work Orders with actual vs standard yield
Moisture loss accounting via Stock Reconciliation
By-product valuation — bran and husk in accounts
Multi-mill setup — each mill as separate warehouse
Inter-mill transfer with accounting
3 months post-launch support
Hosting and AMC
From ₹410/mo
Ongoing · after go-live
Frappe Cloud managed hosting — India data centre
Daily backups, SSL and auto-upgrades
AMC ₹50,000/year — support + minor fixes
Priority WhatsApp support Mon–Sat
Common questions

Questions agro processors ask before implementing ERPNext.

Can ERPNext handle paddy-to-rice conversion with bran and husk as by-products? +
Yes. A Conversion BOM in ERPNext defines the standard input paddy quantity and the expected output quantities of rice, bran, husk and loss per milling batch. When the Work Order is completed, actual quantities of each output are entered. The system automatically deducts paddy from stock, adds rice, bran and husk to their respective warehouses and posts the Cost of Goods Manufactured to accounts. Yield variance — actual rice output vs standard — is calculated and posted to a Yield Variance account.
How does ERPNext account for moisture loss during paddy storage? +
Moisture loss in ERPNext is handled through Stock Reconciliation. The physical count quantity — after accounting for evaporation — is entered into Stock Reconciliation at configured intervals (weekly, fortnightly or monthly). ERPNext adjusts the system stock to the physical quantity. The difference is posted to a Moisture Loss account in the P&L. Different moisture loss percentages can apply to different paddy varieties and storage conditions — all tracked separately per item.
Can ERPNext track gunny bags issued to procurement agents? +
Yes. Gunny bags are configured as a separate inventory item in ERPNext. When bags are issued to a procurement agent for paddy collection, the transaction is recorded as a Material Transfer — bags move from the main store to a virtual agent warehouse. When the agent returns with paddy, the bags come back with the paddy GRN. A balance report shows outstanding bags per agent at any time — with the outstanding value. PS Digitise clients have used this to identify and recover ₹4+ lakh in outstanding gunny bags within 60 days of go-live.
How does ERPNext handle GST for paddy, rice, bran and husk? +
Each agro item in ERPNext carries its own HSN code and GST rate. Paddy (HSN 1006) is configured as GST-exempt. Rice (HSN 1006) is configured at 5% for branded rice or 0% for unbranded — both configurations supported. Rice bran (HSN 2302) is 0%. Paddy husk is 0%. The correct rate is applied automatically at every Sales Invoice. GSTR-1 data is generated from Sales Invoices — B2B with buyer GSTIN, B2CS for direct consumers and HSN summary for filing. e-Way Bill for inter-state rice movement above ₹50,000 generated from Delivery Note.
What does ERPNext cost for a rice mill or agro processor? +
Phase 1 (accounting, procurement with agent commission, gunny bag inventory, GST) from ₹1,75,000. Phase 2 adding conversion BOM, milling Work Orders, moisture loss accounting and multi-mill setup from ₹50,000 additional — total ₹2,25,000 for a full multi-mill implementation. ERPNext software: ₹0 licensing forever. Frappe Cloud hosting from ₹410/month. Tally migration included free. All prices fixed in writing before work starts.
Can ERPNext manage multiple rice mills or processing locations? +
Yes. Each processing unit is configured as a separate warehouse in ERPNext — Mill 1 Trichy, Mill 2 Thanjavur, Mill 3 Kumbakonam as separate nodes in the warehouse tree. Stock is tracked independently per mill. Management sees consolidated paddy and rice stock across all mills from one dashboard in real time. Inter-mill paddy transfers are Material Transfer Stock Entries — fully documented, accounted and auditable. No additional ERPNext software licence per mill.
Deep-dive guides

Read more about ERPNext for agro processing.

Inventory · Stock · Multi-warehouse
ERPNext Inventory Management India — Complete Guide 2026
Multi-warehouse, FIFO vs moving average, batch tracking, reorder alerts, stock reconciliation and perpetual inventory — everything ERPNext does for Indian businesses.
Read guide →
GST · GSTR-1 · e-Way Bill
ERPNext GST India — GSTR-1, GSTR-3B, e-Invoice and e-Way Bill Complete Guide
Complete GST compliance guide — GSTR-1 from Sales Invoices, e-Way Bill for goods movement, GSTR-3B and ITC tracking in ERPNext.
Read guide →
Manufacturing · BOM · MRP
ERPNext for Manufacturing India 2026 — Complete Guide: BOM, MRP and Production Planning
BOM, MRP, Work Orders, Job Cards, subcontracting and quality control — complete ERPNext manufacturing guide for Indian businesses.
Read guide →
Free Assessment · Fixed Price · 8-Week Go-Live

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