ERPNext for Manufacturing Companies India | PS Digitise

Problems We Solve

What Indian Manufacturers Tell Us Before Implementing ERPNext

These are the most common reasons manufacturing companies come to PS Digitise. If any sound familiar, ERPNext can fix them.

Before ERPNext — The Problem

After ERPNext — The Fix

Problem

Production planned in Excel — no real-time visibility

Separate files for BOM, work orders and material requirements. Nobody knows actual status until end of day.

→

ERPNext Fix

MRP calculates material needs from sales orders automatically

Production managers see live material availability before releasing any work order.

Problem

Physical stock never matches system stock

Items consumed in production but stock entries missed. Month-end reconciliation takes days.

→

ERPNext Fix

Real-time inventory tied directly to Work Orders

Every material issue and receipt posts to stock instantly. Reconciliation is automatic.

Problem

No traceability — which RM batch went into which FG?

A quality complaint arrives and nobody can identify the raw material lot used in that production run.

→

ERPNext Fix

Batch tracking from RM receipt to finished goods dispatch

Full traceability in both directions — forward from RM lot to FG batch, and backward.

Problem

Subcontracting is a black hole — material sent out is lost

Material sent to job workers disappears from the books. Reconciling what was sent vs received is entirely manual.

→

ERPNext Fix

Subcontracting module with ITC-04 compliance

Track material at every job worker. GST reconciliation for job work takes minutes, not days.

Problem

Actual production cost unknown until month end

Job card data, material consumption and labour not captured in real time. Variances known weeks late.

→

ERPNext Fix

Cost of Goods Manufactured posts automatically on Work Order close

Actual vs standard cost variance visible the same day. No month-end surprises.

Problem

GST invoicing slow — billing and accounting disconnected

Production in one system, billing in Tally, delivery challan in Excel. E-way bill is a last-minute scramble.

→

ERPNext Fix

One system from production to GST invoice to accounting

Delivery note, e-invoice IRN and accounting entry all auto-generated on dispatch.

Industries We Serve

Manufacturing Sectors PS Digitise Has Implemented ERPNext For

Manufacturing is our largest industry segment. We have implemented ERPNext across 12 sub-sectors with specific workflows for each.

🔩

Discrete Manufacturing

Auto components, electronics, fabrication

BOM + Work Orders

🧪

Process Manufacturing

Chemicals, food & beverage, paint

Batch + Process

🪡

Textile & Garments

Yarn, fabric, garments, embroidery

Multi-stage BOM

🏗️

Steel & Metal

Pipes, sheets, castings, forgings

Subcontracting

🪑

Furniture & Wood

Modular furniture, doors, panels

Assembly BOM

⚡

Electrical & Electronics

Switchgear, cables, PCBs

Serial tracking

💊

Pharma & Healthcare

Formulations, medical devices

QC + CoA

🌾

Agro Processing

Rice mills, dal mills, oil mills

Yield tracking

🖨️

Printing & Packaging

Corrugated, labels, pouches

Job costing

🚗

Auto Ancillaries

Components, sub-assemblies, tooling

OEM workflows

🧱

Building Materials

Tiles, cement products, pipes

Batch + Dispatch

🛢️

Plastics & Rubber

Injection moulding, extrusion

Material tracking

What We Configure

Manufacturing Modules — See Them in Action

Click any module to see a live preview of what it looks like in ERPNext. Every module is included in your implementation — no per-module add-on charges.

Activev2.1

ItemGear Assembly A (GA-001)

Quantity1 Unit

CompanyPS Manufacturing India

Operating Cost₹450 / unit

Raw Material Cost₹3,240 / unit

Total Cost₹3,690 / unit

Raw Materials

Item Code	Item Name	Qty	UOM	Rate (₹)	Amount (₹)
RM-STEEL-001	EN8 Steel Rod 25mm	2.500	Kg	82.00	205.00
RM-BEAR-012	Bearing 6205 ZZ	2.000	Nos	185.00	370.00
RM-GEAR-008	Helical Gear Blank 80T	1.000	Nos	1,240.00	1,240.00
RM-SEAL-003	Oil Seal 30×52×10	2.000	Nos	48.00	96.00
RM-BOLT-M8	M8×25 Hex Bolt Grade 8.8	8.000	Nos	12.00	96.00

Sub-Assemblies (Multi-Level BOM)

📦 Gear Assembly A × 1

↳ 🔩 Shaft Sub-Assembly × 1 Sub-BOM

↳ RM: EN8 Steel Rod — 2.5 Kg

↳ RM: Bearing 6205 ZZ — 2 Nos

↳ 📦 Housing Sub-Assembly × 1 Phantom BOM

↳ RM: Helical Gear Blank — 1 Nos

3 Work Orders suggested

Sales Orders analysed

Work Orders to create

Purchase Orders suggested

Critical shortages

Material Shortage Analysis

Item	Required	In Stock	On Order	Shortage	Action
EN8 Steel Rod 25mm	125 Kg	48 Kg	—	77 Kg	Create PO
Bearing 6205 ZZ	100 Nos	24 Nos	50 Nos	26 Nos	Create PO
Helical Gear Blank 80T	50 Nos	62 Nos	—	+12 Nos	Sufficient
M8×25 Hex Bolt Grade 8.8	400 Nos	850 Nos	—	+450 Nos	Sufficient

In Process

ItemGear Assembly A (GA-001)

Qty to Manufacture25 Nos

Sales Order RefSO-2026-0182

Planned Start26-May-2026

Planned End29-May-2026

% Completed64%

Job Cards — Operations

Operation	Workstation	Operator	Std Time	Act Time	Status
Turning	CNC Lathe-01	Ramesh K	45 min	42 min	Complete
Milling	VMC-02	Suresh P	60 min	58 min	Complete
Assembly	Assembly Bay-1	Murugan A	30 min	—	In Progress
QC Inspection	QC Bay	—	15 min	—	Pending

Accepted

ReferenceWO-2026-0384

ItemGear Assembly A

Inspection TypeFinal Inspection

InspectorQC — Selvam R

Date29-May-2026

ResultAccepted

Quality Parameters

Parameter	Specification	Min	Max	Actual Reading	Result
Shaft Diameter	25.00 mm	24.95	25.05	25.02 mm	Pass
Surface Finish (Ra)	1.6 μm	—	1.6	1.4 μm	Pass
Gear Backlash	0.10 mm	0.08	0.15	0.11 mm	Pass
Hardness (HRC)	58–62 HRC	58	62	59 HRC	Pass
Runout	≤ 0.05 mm	—	0.05	0.03 mm	Pass

Material Sent

Job WorkerSri Murugan Plating Works

ProcessHard Chrome Plating

Sent Date22-May-2026

Expected Return30-May-2026

ITC-04 ChallanDC-2026-0094

Material Value₹48,500

Materials Sent to Job Worker

Item	Qty Sent	Qty Received Back	Pending	Status
Shaft — GA-001 (Pre-plating)	50 Nos	32 Nos	18 Nos	Partial
Housing — GA-001 (Pre-plating)	50 Nos	50 Nos	0 Nos	Received

ITC-04 Compliance: Challan DC-2026-0094 issued under Section 143 of CGST Act. Goods sent for job work within 1 year. GST input credit preserved. Return pending for 18 units — within allowed period.

Real-time

WarehouseRM Store — Plant 1

Valuation MethodMoving Average

Stock Value₹18,42,350

Last UpdatedToday 14:32 IST

Stock Ledger — Recent Entries

Date	Item	Voucher	In	Out	Balance	Value (₹)
29-May	EN8 Steel Rod 25mm	GRN-0284	100 Kg	—	148 Kg	12,136
29-May	Bearing 6205 ZZ	WO-0384	—	50 Nos	24 Nos	4,440
28-May	Helical Gear Blank	GRN-0281	25 Nos	—	62 Nos	76,880
28-May	EN8 Steel Rod 25mm	WO-0381	—	62.5 Kg	48 Kg	3,936

Architecture View

How ERPNext Modules Connect — Manufacturing Data Flow

The complete ERPNext manufacturing architecture PS Digitise configures. Every node shows real data relationships — click a step below to highlight the flow.

Input Data

Planning Engine

Execution

Quality & Tracking

Output & Finance

Feedback loop

Sales Orders + BOM + Stock → MRP Engine

Customer orders, forecasts, Bill of Materials and current inventory levels all feed into the MRP Engine simultaneously. MRP calculates exactly what to buy and what to produce — no manual planning needed.

MRP Engine → Purchase Orders + Work Orders + Subcontracting

MRP outputs three streams: Purchase Orders for shortfall raw materials (auto-generated), Work Orders for production runs (linked to BOM), and Subcontracting orders for job worker processes.

Execution feeds Quality & Tracking layer

Goods receipt triggers QC inspection. Work Orders generate Job Cards for each operation (operator, machine, time). Subcontracting goods received back go through final quality inspection before entering stock.

Quality gates release to Output & Finance

Accepted goods update stock in real time. Work Order completion automatically posts Cost of Goods Manufactured to accounting. Dispatch generates delivery note, e-Invoice IRN and GST accounting entry — all in one click.

Stock feeds back to MRP — closed loop

Every stock movement — GRN, production issue, FG receipt, dispatch — instantly updates the Current Stock input to MRP. The next MRP run always works with live inventory data, not yesterday's numbers.

Why ERPNext

ERPNext vs Tally vs SAP for Indian Manufacturers

An honest comparison for Indian manufacturing SMEs deciding between the most common options in 2026.

Factor	Tally Prime	SAP Business One	ERPNext · PS Digitise ✓
Manufacturing module	✗ Not available	✓ Full	✓ BOM, MRP, WO, QC, Subcon
Multi-level BOM	✗	✓	✓ + Phantom BOM (v16)
Subcontracting / Job Work	Basic	✓	✓ With ITC-04 compliance
GST + e-invoice India	✓ Excellent	With add-on	✓ Native India Compliance app
Software licensing cost	₹54,000/year	₹3L–₹8L/year	₹0 — open source
Implementation cost	₹0	₹5L–₹25L	₹1,75,000–₹5,00,000
Go-live timeline	1–2 weeks	6–18 months	8–14 weeks
Best for	Accounting only	500+ employee enterprise	10–500 employee manufacturers

Fixed Pricing

ERPNext Manufacturing Implementation Cost — PS Digitise 2026

Fixed price agreed before we start. No hourly billing. No hidden charges. Tally migration included in all packages.

Standard Manufacturing

₹1,75,000

Up to 50 employees · 8–10 weeks

Accounting + inventory + procurement
Bill of Materials (BOM) setup
Work Orders + material issue
Subcontracting module
India GST + e-invoice configuration
Tally data migration included
User training — all roles
1-month post-launch support

Get Started →

PS Digitise Manufacturing Implementation Process

A phased, low-risk approach refined across 50+ manufacturing projects. Go live on accounting first — then activate production modules once your team is ready.

Week 1

Manufacturing Audit

We map your production process, BOM structure, subcontracting workflow and quality requirements. Scope and fixed price agreed in writing.

Week 2–6

Phase 1 — Accounting & Inventory

Chart of accounts, items, warehouses, customers, suppliers, Tally migration and GST configuration. Team starts using ERPNext for day-to-day transactions.

Week 7–12

Phase 2 — Manufacturing Modules

BOM configuration, Work Orders, MRP setup, Job Cards, subcontracting, quality inspection. Production planning and shop floor go-live.

Week 12–14

Training & Handover

Role-specific training for production managers, store keepers, operators, accountants and management. Live support for first month post-go-live.

Client Results

What Indian Manufacturers Say After Going Live on ERPNext

★★★★★

"PS Digitise implemented ERPNext for our 120-employee auto components unit. The BOM and Work Order setup was meticulous. Production managers now see real-time material availability before releasing any work order. Stock accuracy went from 70% to 98% in the first month."

Rajesh

Operations Head · Auto Components, Coimbatore

★★★★★

"Our subcontracting was a mess — material sent to job workers would disappear from our books. ERPNext's subcontracting module with ITC-04 tracking solved it completely. GST reconciliation for job work now takes 10 minutes instead of 2 days."

Karthik

Director · Metal Fabrication, Chennai

★★★★★

"We migrated from Tally ERP 9 in 10 weeks. Zero data loss — Trial Balance matched on go-live day. MRP alone has reduced raw material purchase cost by 12% in 6 months by eliminating excess buying."

Suresh

MD · Plastics Manufacturer, Tamil Nadu

FAQ

Questions Indian Manufacturers Ask Before Implementing ERPNext

How much does ERPNext cost for a manufacturing company in India?

PS Digitise implements ERPNext for manufacturing starting at ₹1,75,000 for up to 50 employees (Standard). Full suite with MRP, Quality Control and Frappe HRMS costs ₹2,75,000–₹3,50,000 for 50–150 employees. Enterprise for 150–500 employees costs ₹4,00,000–₹5,00,000+. ERPNext software: ₹0 forever. Tally migration included in all packages.

How long does ERPNext implementation take for a manufacturing company?

8–14 weeks with our phased approach. Phase 1 (accounting, inventory, procurement) goes live in 4–6 weeks. Phase 2 (manufacturing module — BOM, Work Orders, MRP, QC) adds 4–6 weeks. Going live on Phase 1 first means your team gets comfortable before tackling production workflows.

Which manufacturing sectors has PS Digitise implemented ERPNext for?

Discrete manufacturing (auto components, electronics), process manufacturing (chemicals, food & beverage), textile & garments, steel & metal, furniture & wood, electrical, pharma, agro processing, printing & packaging, auto ancillaries, building materials and plastics & rubber. Manufacturing is our largest segment across 50+ total implementations.

Can ERPNext handle subcontracting and job work for Indian manufacturers?

Yes. ERPNext tracks material sent to job workers, WIP at job worker location, goods received back and inventory updates. It handles GST on subcontracting correctly including Form ITC-04 compliance under Section 143 of CGST Act — essential for manufacturers who outsource machining, plating, painting or assembly.

Will our Tally data be migrated to ERPNext?

Yes — included in all packages at no extra charge. We migrate chart of accounts, customer and supplier masters, item masters, opening balances (Trial Balance), outstanding receivables and payables and opening stock. We run a full Trial Balance reconciliation before go-live — your balances must match Tally exactly before we proceed.

Does ERPNext support multi-level BOM and Phantom sub-assemblies?

Yes. ERPNext supports multi-level BOM — finished goods, sub-assemblies and raw materials in a hierarchical structure. ERPNext v16 (January 2026) added Phantom BOMs — virtual sub-assemblies that explode automatically into components during MRP without creating separate Work Orders. PS Digitise configures Phantom BOMs as part of all v16 implementations.

ERPNext forManufacturing CompaniesIndia — Go Live in 8 Weeks

What Indian Manufacturers Tell Us Before Implementing ERPNext

Manufacturing Sectors PS Digitise Has Implemented ERPNext For

Manufacturing Modules — See Them in Action

How ERPNext Modules Connect — Manufacturing Data Flow

ERPNext vs Tally vs SAP for Indian Manufacturers

ERPNext Manufacturing Implementation Cost — PS Digitise 2026

PS Digitise Manufacturing Implementation Process

What Indian Manufacturers Say After Going Live on ERPNext

Questions Indian Manufacturers Ask Before Implementing ERPNext

ERPNext for
Manufacturing Companies
India — Go Live in 8 Weeks