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.
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BOM per paddy variety — IR-64, Sona Masoori, Ponni, Basmati — each with its own
conversion ratio
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By-product quantities in BOM — rice bran and paddy husk defined as outputs at
standard yield
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Actual vs standard yield — actual rice output vs BOM standard. Yield loss posted to
Yield Loss account automatically.
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By-product valuation — bran and husk valued at market rate. Added to inventory and
accounts at milling completion.
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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
| Item |
Type |
Standard Qty |
UOM |
Category |
| IR-64 Paddy (Raw) |
Input |
100 |
Quintal |
Raw Material |
| IR-64 Rice (Boiled) |
Output |
67 |
Quintal |
Main Product |
| Rice Bran |
By-product |
7 |
Quintal |
By-product |
| Paddy Husk |
By-product |
20 |
Quintal |
By-product |
| Moisture + Loss |
Loss |
6 |
Quintal |
Yield Loss |
67%
Rice yield (standard)
27 qtl
By-products (bran+husk)
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.
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Stock Reconciliation — actual counted quantity entered. System adjusts stock to
physical quantity.
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Moisture Loss account — difference posted to a dedicated P&L account. Visible in
financial reports.
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Configurable intervals — weekly, fortnightly or monthly reconciliation depending on
storage method
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Variety-wise moisture loss — different moisture loss% for paddy vs milled rice vs
bran. All tracked separately.
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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.
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Purchase per agent per grade — Grade A, B, C with different rates. Agent recorded on
every purchase.
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Moisture content at GRN — moisture % recorded. Rate deducted per mill's moisture
premium/discount policy.
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Agent commission auto-calculated — rate per qtl per grade configured. Commission
appears on Purchase Invoice automatically.
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Gunny bag inventory — bags issued to agents tracked. Returned bags reduce
outstanding. Balance report per agent.
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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.
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Each mill as a separate warehouse — Mill 1 Trichy, Mill 2 Thanjavur, Mill 3
Kumbakonam all separate
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Consolidated stock dashboard — MD sees paddy and rice stock across all mills from
one screen, live
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Inter-mill transfer — paddy sent from one mill to another via Material Transfer
Stock Entry. Documented, accounted.
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Mill-wise P&L — revenue and costs per cost centre. Profit per mill visible
separately.
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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.
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Paddy — GST-exempt (Chapter 10, HSN 1006). Correct nil-rated treatment on purchase
invoices.
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Rice — 5% GST for branded rice (Chapter 10, HSN 1006). 0% for unbranded. Both
configurations supported.
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Rice Bran and Husk — 0% GST. Correct treatment on sales invoices automatically.
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e-Way Bill — for inter-state rice and by-product movement above ₹50,000. Generated
from Delivery Note.
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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.
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Perpetual inventory — every purchase receipt and sale posts to the ledger at the
same time
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By-product revenue — bran and husk sales posted to by-product revenue account.
Separate P&L line.
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Moisture Loss account — evaporation expense visible in P&L by month
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Agent commission expense — posted to procurement cost account per agent per purchase
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Month-end in 4 days — P&L, Balance Sheet and stock valuation always current. No
Tally reconciliation.
