Tally.ERP 9 For Rice Mills

Agenda Rice Mill Business – An Overview How Rice Mill Operations are Structured Tally.ERP 9 for Rice Mills Business Process Flow Primary Requirement Tally.ERP 9 – Fitment

How Rice Mill Operations are Structured Rice Mill Business Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS MILL ADMINISTRATION

Rice Mill Business – An Overview

Rice Mill Business – Paddy Purchase Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS MILL ADMINISTRATION

Process Flow - Paddy Purchase

Primary Requirement – Paddy Purchase Category/Module Major Requirement Explanation Paddy Purchase Paddy purchase from various farmers (Levy paddy) Mill manager places purchase orders with paddy suppliers/farmer. He identifies MSP for standard quality paddy. He provides different addresses of warehouses and mill for paddy delivery. Paddy quality recording Purchase manager identifies the quality of paddy and decides the price based on moisture, grain type, foreign matter etc. He records the paddy quality with the paddy batch information. Levy paddy purchase State specific levy for paddy purchase and categorizing levy paddy and levy-free paddy needs to be done by mill manager to separately track the profits. Purchase from mandi Purchase manager buys paddy from mandi market. Generally a commission agent(broker) purchases the paddy through auctioning. Ability to record the base price, bonus price to reach final paddy price is important. Warehouse address in purchase orders While delivering paddy to multiple warehouses and storage units, if the warehouse address is printed on PO, it will help the delivery of paddy. Landing cost The landing cost needs to be calculated for arriving exact cost of paddy and thus to calculate profit. There should be a provision to capture landing cost for paddy purchase and accounting the handling and transport charges.

Tally.ERP 9 Fitment – Paddy Purchase No. Requirement Tally.ERP 9 Customizable 1 Purchase order generation Yes 2 Paddy receipt note 3 Purchase returns handling 4 Purchase invoice 5 Levy management : state-specific levy on paddy purchases 6 Godown address in purchase order (different billing address and delivery address) 7 One bill and multiple warehouse delivery 8 Mandi market purchases 9 Purchases with bonus and final price adjustment 10 Commission to mandi agent for purchases 11 Recording paddy quality with batch 12 Multiple mill braches and branch synchronizations with main mill (head office) Contd..

Tally.ERP 9 Fitment – Paddy Purchase No. Requirement Tally.ERP 9 Customizable 13 Tracking paddy in transit and reconciliation Yes 14 Handling CMR paddy and non-levy rice with details in purchase invoice 15 Purchase orders summary (paddy type-wise) 16 Re-order level report 17 Purchase register, purchase order book 18 Purchase bill pending report 19 Stock transfer analysis 20 Different modes of payment (cheque and cash) 21 Outstanding payable report 22 Bank guarantee details in agreements 23 Paddy packing bag details 24 Physical stock adjustment (handling damage, pilferage) 25 Purchase contract drafting and printing

Rice Mill Business – Shelling and Processing Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS MILL ADMINISTRATION

Process Flow – Shelling and Processing

Primary Requirement – Shelling and Processing Category/Module Major Requirement Explanation Shelling and Processing Shelling contracts Drafting of service contract, with payment and delivery terms is necessary. This avoids confusions during payment. Service details on invoice Detailed bill showing the usage of services. Cleaner, steamer, sheller, whitener, silky, grader, bunker, electricity, labour, water usage based billing will help the customer to understand the bill better. Conversion reports Paddy to rice conversion : to identify what percentage of paddy is converted to rice. (eg: 68% paddy conversion to rice, 10% bran etc.) This will be very useful along with contract-wise reports. Contract summary report Contract summary report showing rice quantity and payment details of the month based on channels will help the mill manager to see the profitable contracts. Mill and quality standards to be printed on invoices Milling process standardizations like, ISO-9001-2000, HACCP, ISO-14000 printed along with invoice is very important to re-affirm the mill quality. Packing reports Reports on rice packing for direct sales/super-market sales which would also help in tracking packing material. eg: Basmati rice sold in packets by the mill.

Tally.ERP 9 Fitment – Shelling and Processing No. Requirements Tally.ERP 9 Customizable 1 Shelling contracts’ drafting and printing Yes 2 Conversion reports of paddy to rice (eg: 68% rice, 10% bran etc.) 3 Printing mill standards and quality certification details (eg: ISO-9001-2000) 4 Daily production report – details with rice category 5 Warehouse reports (to track mill-owned rice and customer shelling rice) 6 Daily expense report 7 Weight tracking of rice (loss of weight) 8 Detailed bill showing the usage of services 9 Packing material consumption tracking 10 Shelling contract summary report 11 Customer paddy and rice tracking 12 Mill-owned rice tracking

Rice Mill Business – Mill Sales Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS MILL ADMINISTRATION

Process Flow – Mill Sales

Primary Requirement – Mill Sales Category/ Module Major Requirement Explanation Mill Sales Open market sale (OMSS) Managing rice sale at predetermined FCI prices in open market is necessary. The sale price has to be above MSP as per FCI guidelines. Sale of rice and bi-products with rice details in invoice is important. Disposal of damaged food grains Damaged rice or paddy is sold through tenders. Sale should be for non-human consumption where minimum reserve price is fixed by state-owned departments and agencies. Sale to supermarket and other direct channels Sale of different rice types based on the polish levels, quality and rice grades to super markets and retailers. Sale through mandi markets It is necessary to account the sale of rice in mandi market, where same rice can be sold at various rates based on demand and buyer. Mandi commission agent(broker) reports It is important to track the expenses/commissions given to broker to see which broker has given maximum sale. Levy rice sale It is necessary to account levy paid during sales (state specific sale forms like, ST-38 Haryana) for sale of levy rice in open market. Sale of bags Issuing of packing bags during sale and sale of bags are to be accounted in the system. Exports Export sale forms Mill needs to fill exports forms (eg: ARE.1) and submit before the sale of excisable food items Export sale reports Export sales , export delivery note and export sale reports will help mill owner understand the exact costs and profits from exports

Tally.ERP 9 Fitment – Mill Sales No. Requirements Tally.ERP 9 Customizable 1 Sale of rice based on quality and quality info: Open market sales Yes 2 Handling multiple brands 3 Printing rice quality and additional product details (Basmati etc.) On sales invoice 4 Price level creation – quantity based discounts 5 Sales bill with mill details and contact person details 6 Handling cash sales, credit sales, card sales 7 Levy rice management : state specific levy on sale 8 Mandi sales and discounts/bonus adjustments 9 Oil content recording (lab test) from rice bran 10 Sales return handling from super markets/retailers 11 Billing inclusive and exclusive of VAT/CST 12 Commission to mandi agent in market sale 13 Agent-wise sale report Contd..

Tally.ERP 9 Fitment – Mill Sales No. Requirements Tally.ERP 9 Customizable 14 Stock query - alternative product availability while making invoice/delivery (eg: same quality rice, brokens) Yes 15 Price list of rice: display and print 16 Discount sale of rice: Identifying total discounts given/received 17 Carrying and forwarding sales (C & F sales) 18 Tracking partial payments, bill references for orders, multiple payments against same bill 19 Sales register 20 Sales orders book 21 Paddy and rice movement analysis 22 Columnar report - godown wise, branch-wise 23 Delivery report to different locations: warehouse and mill 24 Ageing analysis of receivables and payables 25 Ageing analysis of rice (Inventory tracking) Contd..

Tally.ERP 9 Fitment – Mill Sales No. Requirements Tally.ERP 9 Customizable 26 Physical stock verification: Rice weight tracking (loss of moisture) Yes 27 Pending sales bills 28 Daily sales report 29 Daily sales return report 30 Stock summary report 31 Daily stock transfer report between mill and warehouse 32 Broken, husk, blower reports 33 Empty bag report 34 Transport register 35 Dharamkanta details (weighment details) 36 Export goods pending at port and reconciliation

Rice Mill Business – Mill Administration Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS MILL ADMINISTRATION

Process Flow - Mill Administration

Primary Requirement - Mill Administration Category/Module Major Requirement Explanation Operations Resource allocation As electricity, labour cost are very high for mill, proper tracking of the costs become important. Also water costs, mill maintenance costs, internal husk consumption are to be accounted for finding exact profit in mill business. Gate pass system To track the load and vehicles moving in and out of mill, warehouse, gate-pass system keeps check on movement of goods. This is very useful in case of multiple gates, warehouses and mill branches. Vehicle management Mill owned vehicles or hired transport vehicle details recording and tracking is necessary. Driver details and ability to send automated messages can be very useful. Administration Rice, paddy varieties Warehouse Reports Tracking several rice type like, Basmati, non-Basmati, Grade – A etc. also based on the polishing level, is important. Daily production reports Analysis of daily operations, costs and profits in a single operations report for the day is useful for mill manager. Paddy weight Paddy weight tracking along with ageing analysis is very useful as the paddy loses moisture, weight reduction occurs Insurance policies Tracking of insurances policies for specific order is very useful specifically in case of multiple insurance policies. Per kg cost tracking Effective cost of milling a kg/ton of rice based on mill usage, whitener usage, silky usage etc. can be identified.

Tally.ERP 9 Fitment - Mill Administration No. Requirements Tally.ERP 9 Customizable 1 Shelling contracts and printing Yes 2 Mill energy consumption : electricity, water and maintenance 3 Gate pass inwards 4 Gate pass outwards 5 Gate pass summary report 6 Vehicle tracking : own and paddy grower’s 7 Vehicle driver details and tracking the goods in transit 8 Rice and paddy bags tracking of different sizes 9 Internal consumption of husk and cost tracking 10 Insurance policies: national and international insurance policies 11 Daily dispatch reports 12 B1 register : paddy consumption summary 13 Levy management and configuration state-wise Contd..

Tally.ERP 9 Fitment - Mill Administration No. Requirements Tally.ERP 9 Customizable 14 Export reports Yes 15 Per kg cost of rice 16 Per ton cost of rice 17 Item-wise reports :rice, broken, bran, husk 18 Lab report : bran oil content 19 Foreign currency handling in export sales 20 Daily production report 21 Production report item-wise 22 Production report contract-wise 23 Mill supervisory team’s movement register to see the mill activities

Rice Mill Business – Accounts and MIS Reports Overview SHELLING & PROCESSING PADDY PURCHASE RICE SALES MILL ACCOUNTS MIS REPORTS ADMINISTRATION MILL

Primary Requirement – Accounts and MIS Reports Category/Module Major Requirement Explanation Accounts VAT, CST, Service tax All the statutory requirements need to be met by the mill. Bills should account for all the taxes. Levy rice accounting State taxes on levy paddy purchase and rice sales should be tracked and state specific forms needs to be filled. Export forms Rice exports need special forms like ARE.1 and needs to be filled by the mills for exports Payroll handling Mill employee database, salary, overtime, bonus calculation, PF, ESI etc. has to be maintained. MIS Reports Mill capacity utilization report Mill capacity utilization reports are very useful to understand how many shelling orders can be taken and to identify breakeven production limit of month etc. Paddy conversion reports Conversion reports help to understand which paddy batch has best conversion rates (eg: 68% rice, 10% bran) Item-wise profit Item-wise product reports help to identify what rice type has best ROI (Grade-A, Sona masuri, BT etc.) Mandi market report Mandi reports help to understand mandi operations, agent commissions and total mandi interaction summary Contract summary report Summary reports help to understand which contracts were very beneficial for the mill in terms of profit.

Tally.ERP 9 Fitment – Accounts and MIS Reports No. Requirements Tally.ERP 9 Customizable 1 Daily receipts and payments Yes 2 Bank reconciliation 3 Branch transfer management 4 Branch sales and purchase management 5 Multiple payment handling 6 Synchronization with ho-branch-outlets 7 Staff attendance handling 8 Salary payments and pay slips 9 Agent commission handling on paddy purchase and rice sales in mandi market 10 Staff database handling 11 Bonus, incentives management 12 PF forms 13 VAT forms Contd..

Tally.ERP 9 Fitment – Accounts and MIS Reports No. Requirements Tally.ERP 9 Customizable 14 Post dated cheque realization report Yes 15 Branch wise payments and receipts 16 Branch wise sales and purchase 17 Agent-wise mandi sales report 18 Daily sales report – item wise 19 Daily sales report - branch wise 20 Stock summery report 21 Branch wise stock summary 22 Branch transfer report 23 Outstanding receivable and payable 24 Trial balance 25 Remote access 26 Profit and loss account Contd..

Tally.ERP 9 Fitment – Accounts and MIS Reports No. Requirements Tally.ERP 9 Customizable 27 Balance sheet (also schedule VI) Yes 28 Group company 29 Budget setting for the mill 30 Bill-wise profitability 31 Reminder letters , e-mail 32 Multiple payments reports 33 Item wise profitability 34 Ability to send SMS to farmers and agents as reminders for payment

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