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🔩 Auto Ancillary Manufacturing · Tamil Nadu · South India

ERPNext for Auto Ancillary Manufacturers — BOM, ITC-04 and IATF Traceability in One System.

Tamil Nadu produces 35% of India's auto components. PS Digitise implements ERPNext for auto ancillary manufacturers — multi-level BOM with drawing revision tracking, subcontracting with ITC-04 GST compliance, IATF 16949 batch traceability, Job Cards with actual costing and quality inspection at 3 stages. Fixed price. 8-week go-live.

✓
ITC-04 from 3 days to 45 minutes — challans tracked at every despatch
✓
IATF traceability report — RM heat number to delivery challan in seconds
✓
Actual production cost per Work Order — standard vs actual variance live
✓
BOM versioning — drawing revisions tracked with effective dates
✓
Quality inspection at GRN, in-process and final — all configured in ERPNext
50+ implementations · India
From ₹1,75,000 · fixed price
8 weeks · Phase 1 go-live
₹0 software licensing
Certified Frappe Partner
Get Free Assessment → 💬 WhatsApp
ERPNext · Manufacturing › Work Orders
Live
Work Orders — Auto Components · Oct 2026
WO NoItemBOM RevQtyStatus
WO-0841Brake Bracket Assy A2Rev 3500In Progress
WO-0842Steering Knuckle LHRev 1200Planned
WO-0839Hub Cap M12 · Grade 8.8Rev 21,200Completed
WO-0838Tie Rod End RHRev 4300Completed
₹0
Software licence
45 min
ITC-04 filing
Live
Cost variance
8 wks
Phase 1
Problems we fix for auto ancillary manufacturers

Six problems every auto ancillary manufacturer in Tamil Nadu faces.
ERPNext fixes all of them.

Auto component manufacturing has specific pain points — multi-level BOM, job worker compliance, OEM-specific traceability and last-minute drawing changes. ERPNext handles every one of these natively, without custom development.

❌ Right now
ITC-04 filed quarterly by hunting paper challans for job workers. 3 days of manual work. Open challans older than 180 days creating ITC reversal risk with no warning.
✓ After ERPNext
Every subcontracting challan tracked at despatch. ITC-04 Tables 4, 5 and 6 auto-prepared from transactions. Open challan ageing report flags reversal risk 30 days before deadline.
45 min · not 3 days
❌ Right now
Customer asks for RM lot traceability to finished component — which heat number of steel went into which batch of finished parts. No record. OEM audit fails.
✓ After ERPNext
Batch tracking from RM purchase receipt to Work Order issue to finished component to delivery challan. Traceability report in 90 seconds — forward or backward.
IATF 16949 ready
❌ Right now
BOM changed by OEM customer mid-production. Drawing revision issued. Production doesn't know. Material issued at old BOM. Cost variance untracked.
✓ After ERPNext
BOM versioning — every drawing revision tracked with effective date. Work Orders use the current BOM revision. Material issue automatically at correct quantities. Variance auto-calculated.
BOM Rev 1, 2, 3... tracked
❌ Right now
Actual production cost unknown until month-end. Standard cost vs actual machine time and material variances discovered too late for corrective action on current orders.
✓ After ERPNext
Job Card captures actual time per operator per operation. Actual vs standard cost variance tracked per Work Order in real time. Production manager sees cost overrun before order is complete.
Live cost variance
❌ Right now
Job worker sends back components with quality issues — wrong dimensions, surface defects. No system to record rejection quantity, reverse stock or raise debit note automatically.
✓ After ERPNext
Quality inspection at subcontracting receipt — accept, partial accept or reject. Rejected quantity returned to job worker with Subcontracting Return. Debit note auto-raised against rejection.
QC at every receipt
❌ Right now
Multiple OEM customers — each with different part numbers, drawing revision levels and delivery schedules. Managing 5 OEMs in Excel and WhatsApp. Delivery priorities confused.
✓ After ERPNext
Customer-specific item codes and drawing revisions in item master. Separate price list per OEM. Production plan shows all open Work Orders sorted by delivery date and customer priority.
Multi-OEM · one system
End-to-end production flow

From customer order to delivery — every step connected in ERPNext.

Every transaction in ERPNext updates stock, accounts and compliance records simultaneously. No separate Tally entry. No challan register. No Excel cost sheet.

1
Order and Planning
Customer → MRP → Purchase
1
📋
Sales Order received
Customer PO entered. Part number, drawing revision, qty, delivery date.
OEM-specific item
2
📊
MRP run
All open SOs analysed vs current stock. RM shortages flagged. Material Requests auto-created.
Auto Material Request
3
📦
Purchase Order to supplier
PO raised per supplier. Steel grade, heat number captured at GRN.
Heat number at GRN
4
🔬
GRN Quality Inspection
RM held in quarantine. COA check, dimensional inspection. Released to main store on pass.
Quarantine → Release
2
Production and Job Work
Work Order → Job Cards → Subcontracting
5
⚙️
Work Order raised
From Sales Order or Production Plan. BOM revision confirmed. Operations and routing defined.
Current BOM rev
6
🏭
Job Cards — per operation
Operator scans Job Card. Actual time and material recorded per operation. Cost variance calculated live.
Actual vs standard cost
7
🔧
Subcontracting challan
Material sent to job worker. Challan number, date and job worker recorded. ITC-04 tracking starts.
ITC-04 challan
8
✅
Subcontracting Receipt + QC
Material returned. Quality inspection. Accepted qty → FG store. Rejected → return challan + debit note.
QC → FG or return
3
Dispatch and Compliance
Delivery → GST → ITC-04
9
🔍
Final QC Inspection
Finished goods inspected before dispatch. Dimensional check, surface finish, grade certification.
Final QC
10
📤
Delivery Note + Traceability
Stock decreases. Batch → delivery challan link created. IATF traceability chain complete.
Batch trace complete
11
🚚
e-Way Bill auto-generated
e-Way Bill from Delivery Note above ₹50,000 via India Compliance app. No portal login.
e-Way Bill · API
12
📊
ITC-04 + GSTR-1 auto-ready
Quarter-end ITC-04 from challan data. GSTR-1 JSON from Sales Invoices. Both in under an hour.
45 min total
ERPNext modules configured for auto ancillary

Every module your auto component business needs — at ₹0 licensing.

All modules below are included in the base ERPNext licence. No module-by-module pricing. No annual renewal for the software.

Multi-level BOM with Phantom BOM — drawing revision tracking
ERPNext v16 supports multi-level BOM up to 10+ levels, Phantom BOM for sub-assemblies not produced separately, BOM versioning with effective dates and customer-specific BOM variants for each OEM. MRP runs against all open Sales Orders and auto-creates Material Requests for every RM shortage.
✓
Multi-level BOM — 10+ levels, component assemblies, raw materials and operations in one structure
✓
Phantom BOM (v16) — virtual sub-assemblies that explode into RM during MRP without separate Work Orders
✓
BOM versioning — Rev 1, Rev 2, Rev 3 with effective dates. Work Orders always use current revision.
✓
Customer-specific BOM — different OEMs may specify different tolerances or materials for the same part number
✓
MRP engine — all open Sales Orders vs stock vs open POs. Material shortages flagged in one run. Auto Material Request creation.
ERPNext · Manufacturing › BOM · Brake Bracket Assy A2
Rev 3 · Active
BOM — Brake Bracket Assy A2 · Rev 3 · Effective: 01 Sep 2026
ComponentQtyUOMOperationType
MS Flat Bar 50×6mm (IS 2062 E250)0.42kgBlankingRaw Material
Brake Bracket Sub-assy [Phantom]1nos—Phantom BOM
M8 Hex Bolt Grade 8.84nosAssemblyPurchased
Zinc Phosphate Coating1nosSurface treatmentJob Work
Rev 3
Current revision
4 levels
BOM depth
1 Phantom
Sub-assembly
Work Orders and Job Cards — actual vs standard cost per operation
Work Orders are raised from Sales Orders or Production Plans. Each Work Order has a routing of operations — blanking, machining, welding, inspection. Job Cards capture actual time and material per operation. Actual cost is calculated in real time — no waiting for month-end cost accounting.
✓
Work Order from Sales Order — quantity, BOM revision, routing and planned dates all pulled automatically
✓
Job Cards per operation — operator records start time, end time and quantity completed. Scrap quantity recorded.
✓
Actual vs standard cost — material cost, machine cost and labour cost per Work Order. Variance report per part, per order.
✓
Material shortage check — before releasing a Work Order, ERPNext flags any RM below required quantity
✓
COGM auto-posting — Cost of Goods Manufactured posted to accounts when Work Order is completed. No manual journal.
ERPNext · Manufacturing › Work Order · WO-0841
In Progress
Job Cards — WO-0841 · Brake Bracket Assy A2 · 500 nos
OperationPlanned (min)Actual (min)QtyVariance
Blanking120118500-2 min ✓
CNC Machining240268500+28 min ↑
Deburring60——Pending
Zinc Phosphate (JW)——500Subcon
Subcontracting and ITC-04 — challan tracked from despatch to return
Every challan raised when material leaves your factory for a job worker is tracked in ERPNext — quantity, date, job worker name and challan number. When material returns, the Subcontracting Receipt closes the challan. At quarter-end, the ITC-04 report auto-prepares Tables 4, 5 and 6 from these transactions. Filing time: 45 minutes, not 3 days.
✓
Subcontracting Order — materials to send, process to perform, expected return date
✓
Delivery Challan — material despatched to job worker with challan number, date and quantity
✓
Subcontracting Receipt — materials received back. QC inspection. Accepted qty to FG. Rejected qty returned to job worker.
✓
ITC-04 auto-prepared — Tables 4, 5 and 6 from challan transactions. Ready to file in 45 minutes.
✓
Open challan ageing report — flags any challan older than 180 days before ITC reversal risk triggers
ERPNext · Manufacturing › Subcontracting Challan Tracker · Q2 FY27
ITC-04 ready
Subcontracting Challans — Jul–Sep 2026 · ITC-04 Preparation
Challan NoJob WorkerMaterialSentReturnedStatus
SC-0341Rajan Plating WorksBrake bracket (500 nos)5 Jul18 JulClosed
SC-0358Kumar Zinc CoatersHub cap (800 nos)12 Aug—Open · 70 days
SC-0372Sri Selva MachiningKnuckle pin (200 nos)1 Sep—Open · 20 days
45 min
ITC-04 filing time
1 ⚠️
Challan near 180d
Auto
Tables 4, 5 & 6
Quality Inspection — GRN, in-process and final QC in ERPNext
ERPNext quality inspection can be configured at three stages — GRN (incoming RM), in-process (during production) and final (before dispatch). Inspection parameters are configured per item. Quarantine warehouse holds RM until QC is cleared. Failed batches are returned or destroyed with full documentation.
✓
GRN inspection — mandatory before RM enters usable stock. COA check, hardness, dimensional. Quarantine warehouse.
✓
In-process inspection — triggered at defined operations in the Work Order routing. Dimensional check per operation.
✓
Final inspection — before Delivery Note. Customer-specific inspection parameters. PPAP checklist if configured.
✓
Subcontracting receipt QC — material returned from job worker inspected before entering FG stock
✓
Rejection records — quantity rejected, reason code, disposition (return/rework/scrap). Debit note to job worker auto-raised.
Batch Tracking and IATF 16949 Traceability
Every RM lot is tracked from the purchase receipt — heat number, supplier batch, mfg date — through material issue to Work Order to the finished component batch and delivery challan. Forward traceability (which customers got which batch) and backward traceability (which RM lot went into which finished parts) both available from one report.
✓
RM heat number / lot number captured at GRN — supplier reference, mfg date, incoming batch
✓
Material issue to Work Order — batch used in production linked to Work Order number
✓
Finished goods batch — assigned at Work Order completion. Linked to RM batches used.
✓
Delivery Challan link — FG batch linked to customer, delivery date and challan number
✓
Traceability report — complete chain from supplier heat number to customer delivery in 90 seconds. OEM audit-ready.
GST Compliance — e-Invoice, e-Way Bill and ITC-04
All three GST compliance requirements for auto ancillary manufacturers handled in ERPNext through the India Compliance app — e-Invoice IRN for eligible businesses, e-Way Bill from Delivery Note and ITC-04 quarterly return from subcontracting challan data.
✓
e-Invoice IRN — auto-generated at Sales Invoice submission for businesses with AATO above ₹5 crore. QR code embedded in print.
✓
e-Way Bill — generated from Delivery Note above ₹50,000 via India Compliance app. EWB number stored against document.
✓
ITC-04 — quarterly return for job work auto-prepared from subcontracting challan data. Tables 4, 5 and 6 complete.
✓
GSTR-1 — B2B invoices with OEM GSTIN, HSN codes, e-Invoice reference. JSON export for portal upload.
✓
HSN codes per item — Chapter 84, 85, 87 commonly used in auto components. All configured per item in ERPNext.
ERPNext vs alternatives for auto ancillary manufacturers

Why auto ancillary manufacturers in Tamil Nadu choose ERPNext over Tally and SAP.

Tally has no manufacturing module. SAP Business One costs ₹1.16 crore over 5 years for 25 users. ERPNext covers everything your auto component business needs at ₹0 software licensing.

RequirementERPNext + PS DigitiseTally PrimeSAP Business One
Multi-level BOM✓ 10+ levels · Phantom BOM (v16)✗ Not available✓ Included
BOM versioning / drawing revisions✓ Version history with effective dates✗ Not availableLimited PLM — add-on
Work Orders and Job Cards✓ Actual vs standard cost per operation✗ Not available✓ Included
Subcontracting and ITC-04✓ Native · challan tracking · auto ITC-04✗ Manual paper challan only✓ Subcontracting · no ITC-04 native
ITC-04 filing time45 minutes — auto-prepared2–3 days — manual huntingStill requires manual work
IATF 16949 traceability✓ Batch tracking RM to FG to delivery✗ Not available✓ With add-ons
Quality inspection (3 stages)✓ GRN · In-process · Final QC✗ Not available✓ Included
India GST — e-Invoice, e-Way Bill✓ Native via India Compliance app✓ NativePartner-dependent
5-year software cost (25 users)₹0 — open source GPL-3₹18,000/year (Tally Prime)₹1.16 crore (approx)
Implementation cost — PS DigitiseFrom ₹1,75,000 — fixed priceN/A₹25–75L typical
Go-live time8–12 weeks — Phase 1 + 2N/A6–18 months typical
What PS Digitise clients see after go-live

Auto ancillary manufacturers — real results after ERPNext.

98%
Stock accuracy — up from 70% · achieved in Month 1
"ITC-04 from 3 days to 45 minutes. Stock accuracy 70%→98% in Month 1. The stores team abandoned their Excel register on Day 1 of go-live."
Auto Components Manufacturer · Coimbatore · 120 employeesOperations Head · ERPNext Phase 1 + Manufacturing · Tier-2 OEM supplier
90 sec
IATF traceability report · down from 2-day paper search
"OEM audit asked for RM lot traceability to finished component. We pulled the ERPNext report in 90 seconds. The auditor was expecting paper files."
Precision Components · Tamil Nadu · Tier-2 OEM supplierQuality Head · ERPNext Batch Traceability module · IATF 16949
Zero
Open challan ITC-04 reversals · ageing report flags at 150 days
"We used to get ITC reversal notices for old open challans. ERPNext's ageing report flags them at 150 days now. Follow up done in time, every time."
Sheet Metal Fabricator · Chennai · 5 job workersAccounts Manager · ERPNext Subcontracting + ITC-04 module
Fixed price · No surprises · August 2026

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

ERPNext is open source under GPL-3 — ₹0 licensing, unlimited users, forever. The prices below are for PS Digitise's implementation service. Price confirmed in writing before we start. No hourly billing. No scope-creep.

Phase 1 — Accounts + Inventory + GST
₹1,75,000
8–10 weeks · one-time
Chart of accounts, accounting periods, GST setup
Item masters with HSN codes for auto components
Multi-warehouse setup — RM, WIP, FG, quarantine
Subcontracting challans and ITC-04 configuration
e-Invoice IRN and e-Way Bill via India Compliance app
Tally data migration — zero data loss, TB reconciled
User training — 2 days. 1 month post-launch support.
Phase 1 + Manufacturing
₹2,75,000
10–12 weeks · one-time
Everything in Phase 1
Multi-level BOM with versioning and OEM variants
MRP — demand from Sales Orders to Material Requests
Work Orders and Job Cards with actual cost tracking
Quality inspection — GRN, in-process and final
Batch tracking and IATF 16949 traceability report
Subcontracting and ITC-04 full workflow
3 months post-launch support
Hosting and AMC
From ₹410/mo
Ongoing · after go-live
Frappe Cloud managed hosting — India data centre
Automatic daily backups and SSL certificate
ERPNext upgrades managed by Frappe Cloud
AMC ₹50,000/year — bug fixes + minor customisations
Priority WhatsApp support Mon–Sat
24×7 emergency support for AMC clients
Common questions

Questions auto ancillary manufacturers ask before implementing ERPNext.

Does ERPNext handle multi-level BOM for auto components? +
Yes. ERPNext v16 supports multi-level BOM with up to 10+ levels, Phantom BOM for internal sub-assemblies not stocked separately, BOM versioning with effective dates, customer-specific BOM variants and BOM explosion for MRP. Drawing revision tracking is supported in the item master with full revision history. Phantom BOMs are virtual sub-assemblies that explode automatically into their components during MRP without creating separate Work Orders — added in ERPNext v16 (January 2026).
How does ERPNext handle ITC-04 for job workers? +
ERPNext's Subcontracting module tracks every challan raised when material is sent to a job worker — quantity, date, job worker name and challan number. When material returns, the Subcontracting Receipt closes the challan. At quarter-end, the ITC-04 report auto-prepares Tables 4, 5 and 6 from these transactions. Open challan ageing report flags any challan approaching 180 days before the ITC reversal risk triggers. Filing time reduces from 3 days of manual challan hunting to 45 minutes.
Can ERPNext support IATF 16949 traceability requirements? +
Yes. Batch tracking in ERPNext tracks the RM heat number or lot from the purchase receipt through material issue to Work Order to the finished component serial or batch number and delivery challan. A single traceability report shows the complete chain — from supplier batch to customer delivery — in seconds. Forward traceability (which customers received parts from a specific RM batch) and backward traceability (which RM lot went into a specific finished component) are both available. This supports IATF 16949 audit requirements for part traceability.
How long does ERPNext implementation take for an auto ancillary manufacturer? +
PS Digitise implements ERPNext for auto ancillary manufacturers in two phases. Phase 1 (8–10 weeks): accounting, inventory, GST, subcontracting and ITC-04 — your books are live and reconciled. Phase 2 (4–6 weeks after Phase 1): BOM, MRP, Work Orders, Job Cards, quality inspection, batch tracking and HRMS. The two-phase approach ensures accounts are clean and running before production workflows go live. Total: 14–16 weeks for full implementation.
What does ERPNext implementation cost for an auto ancillary manufacturer? +
Phase 1 (accounting, inventory, GST, subcontracting, ITC-04) from ₹1,75,000 — fixed price confirmed in writing. Phase 2 adding BOM, MRP, Work Orders, Job Cards, quality inspection and batch traceability from ₹1,00,000 additional. Full stack including Frappe HRMS (payroll, attendance) from ₹3,25,000. ERPNext software: ₹0 licensing forever. Frappe Cloud hosting from ₹410/month. Tally migration included free in all packages.
Can ERPNext handle multiple OEM customers with different part numbers and drawing revisions? +
Yes. Customer-specific item codes and drawing revision levels are maintained in the item master in ERPNext. Each OEM customer can have their own part number for the same physical component. BOM variants can be created for customer-specific material or tolerance differences. Price lists are configured per OEM customer. Delivery schedules and open orders are visible per customer in the Sales Order dashboard.
Deep-dive guides

Read more about ERPNext for auto ancillary manufacturing.

Auto Ancillary · BOM · ITC-04
ERPNext for Auto Ancillary Manufacturers India — BOM, Subcontracting & ITC-04 Guide
Multi-level BOM, job work subcontracting, ITC-04 challan tracking and IATF 16949 traceability — complete ERPNext guide for auto ancillary manufacturers in Tamil Nadu.
Read guide →
ITC-04 · Subcontracting · GST
ITC-04 in ERPNext — Complete Guide to Subcontracting GST Compliance
Section 143 CGST job work compliance, subcontracting workflow, challan tracking and quarterly ITC-04 filing — configured natively in ERPNext v16.
Read guide →
Inventory · Batch Tracking · FEFO
ERPNext Inventory Management India — Complete Guide 2026
Multi-warehouse, FIFO vs moving average, batch and serial tracking, FEFO, reorder alerts, stock reconciliation and perpetual inventory.
Read guide →
Free Assessment · Fixed Price · 8-Week Phase 1 Go-Live

Ready to fix ITC-04, traceability and production costing?

Free 30-minute call with our auto ancillary ERP specialist. Written fixed-price quote in 48 hours. Tally migration free. Trial Balance guaranteed.

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