© Tally Solutions Pvt. Ltd. All Rights Reserved Tally.ERP 9 For Rice Mills

© Tally Solutions Pvt. Ltd. All Rights Reserved

Tally.ERP 9 For Rice Mills

© Tally Solutions Pvt. Ltd. All Rights Reserved 2 2

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


Rice Mill BusinessOverview

MILL ACCOUNTS

MIS REPORTS

RICE SALES

MILL ADMINISTRATION

PAD

DY

PURC

HAS

E

How Rice Mill Operations are Structured

SHELLING & PROCESSING


Rice Mill Business – An OverviewSCHEMATIC REPRESENTATION OF RICE MILL SOLUTION ON TALLY.ERP9

PADDY PURCHASE

RICE MILL

RICE SALES ACCOUNTS & MIS REPORTS

MILL ADMINISTRATION


· Purchase order and order sheets

· Quality and grades recording

· Mandi purchase and rate management

· Contracts, printing agreements

· Landing cost calculation

· Levy purchase : state specific levy

· Custom Milled Rice(CMR) paddy

· Own paddy consumption

· Market agent commissions

· Farmer details

· Shelling contracts

· Sales voucher with grade

· Production report of contracts

· Paddy conversion reports

· Mill’s ISO quality details on invoice

· Packing of rice

· Quality cuts

· Proforma M1-M7 for transport

· Mandi sales, APMC

· Quality and grades

· Export and certificate of origin

· Dharamkanta (weighment)

· Product-wise sales report

· Mandi price handling

· CMR sale with RMC

· Levy sale : state specific forms

· Tracking goods in transit

· Market agent commissions

· Gate pass system

· Insurance policy – local, international

· Vehicle management

· Weighbridge details

· Bran oil content - lab calculations

· Bag management

· Per kg /per ton cost

· Managing load on multiple trucks

· Manage internal husk consumption

· Warehouse stock management

· Mill branches

· Profits and loss reports

· VAT, CST

· Export statutory

· Mill capacity utilization report

· Mandi register

· Payroll

· Cost tracking

· Reminder letters

· Credit management

· Foreign currency

· Branch-wise reports

· Day-wise mandi reports

· Contract-wise profit-loss reports



MILL ACCOUNTS

MIS REPORTS

RICE SALES

MILL ADMINISTRATION

PAD

DY

PURC

HAS

E


Rice Mill Business – Paddy Purchase


Process Flow - Paddy PurchasePADDY PURCHASE

MANDI PURCHASE

Mill manager calculates the paddy quantity to be purchased

through mandi (FCI PPCs)

Mill manager purchases the paddy from mandi – bonus

and final price are calculated

Paddy is loaded onto the vehicle and driver carries a copy of

invoice

Vehicle driver collects inwards gate pass at the mill gate and paddy is delivered to mill or

warehouse as per invoice

Mill managerdecides whether to use a

commission agent

DIRECT PADDY PURCHASE (LEVY)

Mill manager calculates the paddy quantity to be purchased

directly from farmer

Agent purchases(auctions) paddy from mandi – bonus

and final price are calculated

Paddy payment is made as per the agreed price

Paddy is loaded onto the vehicle and driver carries a copy of

invoice

Vehicle driver collects inwards gate pass at the mill gate and paddy is delivered to mill or

warehouse as per invoice

Paddy payment is made as per the agreed price using cheque/

cash

Paddy MSP (Minimum Selling Price) is used along with bonus

to calculate the final price

NoYes

I f levy is applicable, levy is paid on the direct paddy purchase

Purchase order for paddy is placed with paddy quantity and

price details

Paddy payment is made as per the agreed price, mill manager pays the commission to agent


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 Yes

3 Purchase returns handling Yes

4 Purchase invoice Yes

5 Levy management : state-specific levy on paddy purchases

Yes

6 Godown address in purchase order (different billing address and delivery address)

Yes

7 One bill and multiple warehouse delivery Yes

8 Mandi market purchases Yes

9 Purchases with bonus and final price adjustment Yes

10 Commission to mandi agent for purchases Yes

11 Recording paddy quality with batch Yes

12 Multiple mill braches and branch synchronizations with main mill (head office)

Yes

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

Yes

15 Purchase orders summary (paddy type-wise) Yes

16 Re-order level report Yes

17 Purchase register, purchase order book Yes

18 Purchase bill pending report Yes

19 Stock transfer analysis Yes

20 Different modes of payment (cheque and cash) Yes

21 Outstanding payable report Yes

22 Bank guarantee details in agreements Yes

23 Paddy packing bag details Yes

24 Physical stock adjustment (handling damage, pilferage) Yes

25 Purchase contract drafting and printing Yes



MILL ACCOUNTS

MIS REPORTS

RICE SALES

MILL ADMINISTRATION

PAD

DY

PURC

HAS

E

Rice Mill Business – Shelling and Processing



Process Flow – Shelling and Processing

SHELLING CONTRACTS

Customer gives a shelling service order to mill manager

Customer brings paddy to the mill in a vehicle and is issued

with inward gate pass

Bill is prepared as per shelling charges in contract

Shelling contract is drafted. Payment terms and delivery

dates are agreed

MILLING PROCESS

Customer makes the payment, loads rice & bi-products in

transport vehicle

SHELLI NG AND PROCESSI NG

Paddy is moved from warehouse to the mill

Mill manager decides paddy processing quantity, based on the available mill capacity and

schedule

MILL OWNED PADDY PROCESSING

Inward gate pass is verified and bag quantity checked for

customer vehicle

MILLING PROCESS

Processed rice is packed in different size bags

Rice packets are stored in warehouse for future sale

Mill managerchecks milling schedule

for availability

Customer’s paddy is stored and tracked in warehouse

until mill availability Yes

Rice packets are sent to supermarkets or retailers for

sale in a vehicle

Outward gate pass is issued after recording rice quantity for

the transport vehicle

No


Primary Requirement – Shelling and Processing


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.)

Yes

3 Printing mill standards and quality certification details (eg: ISO-9001-2000)

Yes

4 Daily production report – details with rice category Yes

5 Warehouse reports (to track mill-owned rice and customer shelling rice)

Yes

6 Daily expense report Yes

7 Weight tracking of rice (loss of weight) Yes

8 Detailed bill showing the usage of services Yes

9 Packing material consumption tracking Yes

10 Shelling contract summary report Yes

11 Customer paddy and rice tracking Yes

12 Mill-owned rice tracking Yes



MILL ACCOUNTS

MIS REPORTS

RIC

E SALES

MILL

ADMINISTRATION

PADDY P

URCHASE

Rice Mill Business – Mill Sales



Process Flow – Mill SalesMI LL SALE

MANDI SALE

Mill manager receives orders from super markets and retail

shops about rice variety, quantity and delivery details

Mill manager calculates the total quantity of bran, broken etc. to

be sold as per production reports and order quantity

Mill manager calculates the rice quantity to be sold through

mandi as per production reports

Rice and byproducts are loaded on to delivery vehicle based on

vehicle capacity & order

Mill manager sends invoice copy with quantity details with the

transport vehicle

Rice packets are loaded on to the delivery vehicle based on

vehicle capacity

Vehicle driver collects invoice with quantity details and gate

pass

Vehicle driver collects outward gate pass & shipment details

Delivery is made in partial or full to the location specified

Delivery is made into the mandi warehouse, handling and

delivery charges are added in the bill

CONTRACT/ RETAI L SALE BYPRODUCT SALE EXPORT SALE

Mill managerchecks inventory for

availability

MI LLI NG PROCESS

Payment is received. delivery note & payment receipts are

issued

Commission agent is hired for the mandi sale

Rice sale is made (Levy / CMR) in the mandi

Rice sale is made (Levy / CMR) in the mandi

Payment is received as cheque or cash

Commission is paid to commission agent

Payment is received as cheque or cash

Mill manager mills the quantity of rice to be sold through the

export channel

Rice packets are loaded on to delivery vehicle based on

vehicle capacity

Vehicle driver collects invoice with quantity details, export

forms and gate pass

Rice is delivered to port and bill of lading is sent along with

insurance forms, ARE.1 etc.

Bill of lading copy for mill is collected from the ship

Payment is received as cheque or bank transfer

Not Available

Available

Mill manager receives purchase order for bran, broken(from floor

mills, rava mills), husk etc

Mill manager receives export order from the customer with

quantity details and price

Mill manager decides whether to hire a

commission agent

Yes

No


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



1 Sale of rice based on quality and quality info: Open market sales

Yes

2 Handling multiple brands Yes

3 Printing rice quality and additional product details (Basmati etc.) On sales invoice

Yes

4 Price level creation – quantity based discounts Yes

5 Sales bill with mill details and contact person details Yes

6 Handling cash sales, credit sales, card sales Yes

7 Levy rice management : state specific levy on sale Yes

8 Mandi sales and discounts/bonus adjustments Yes

9 Oil content recording (lab test) from rice bran Yes

10 Sales return handling from super markets/retailers Yes

11 Billing inclusive and exclusive of VAT/CST Yes

12 Commission to mandi agent in market sale Yes

13 Agent-wise sale report Yes

Contd..

Tally.ERP 9 Fitment – Mill Sales



14 Stock query - alternative product availability while making invoice/delivery (eg: same quality rice, brokens)

Yes

15 Price list of rice: display and print Yes

16 Discount sale of rice: Identifying total discounts given/received

Yes

17 Carrying and forwarding sales (C & F sales) Yes

18 Tracking partial payments, bill references for orders, multiple payments against same bill

Yes

19 Sales register Yes

20 Sales orders book Yes

21 Paddy and rice movement analysis Yes

22 Columnar report - godown wise, branch-wise Yes

23 Delivery report to different locations: warehouse and mill Yes

24 Ageing analysis of receivables and payables Yes

25 Ageing analysis of rice (Inventory tracking) Yes


Contd..



26 Physical stock verification: Rice weight tracking (loss of moisture)

Yes

27 Pending sales bills Yes

28 Daily sales report Yes

29 Daily sales return report Yes

30 Stock summary report Yes

31 Daily stock transfer report between mill and warehouse Yes

32 Broken, husk, blower reports Yes

33 Empty bag report Yes

34 Transport register Yes

35 Dharamkanta details (weighment details) Yes

36 Export goods pending at port and reconciliation Yes




MILL ACCOUNTS

MIS REPORTS

RIC

E SALES

MILL

ADMINISTRATION

PADDY P

URCHASE


Rice Mill Business – Mill Administration


Process Flow - Mill Administration

MILL ADMINISTRATION

VEHICLE MANAGEMENT EMPTY BAG HANDLING

Vehicle comes through specific gate for paddy

delivery to mill

Vehicle is loaded with goods (rice and byproducts) for

delivery

Inward gate pass is given after collecting details of

shipment

Vehicle unloads paddy into the warehouse

Outward pass is given after accounting for the

returned goods

Outward gate pass is given after collecting details of

shipment

Transport vehicle delivers paddy bags to mill

Total bags received details are maintained

Rice packing bags are ordered as per order and

inward bag register

GATE PASS INWARDS GATE PASS OUTWARDS

Sales return

Purchase returnInward gate pass is given after collecting details of

returned goods

Outward pass is given based on the reference

inward pass

Yes

NoYes

Inward gate pass is given for the transport vehicle

No

Driver details, capacity of vehicle and trip details are

recorded

Driver details, capacity of vehicle and trip details are

recorded

BAG INWARDS BAG SALE

Transport vehicle delivers rice bags to mandi

Total bags issued details are maintained

Bag sale in market is done with rice sales

Update bags received / bags issued registers

Payment is received for the bag sales and bag count is

adjusted

Bags received registers are updated to reflect the actual

count of bags

Bags issud registers are updated to reflect the actual

count of bags


Primary Requirement - Mill Administration


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 varietiesWarehouse 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


1 Shelling contracts and printing Yes

2 Mill energy consumption : electricity, water and maintenance

Yes

3 Gate pass inwards Yes

4 Gate pass outwards Yes

5 Gate pass summary report Yes

6 Vehicle tracking : own and paddy grower’s Yes

7 Vehicle driver details and tracking the goods in transit Yes

8 Rice and paddy bags tracking of different sizes Yes

9 Internal consumption of husk and cost tracking Yes

10 Insurance policies: national and international insurance policies

Yes

11 Daily dispatch reports Yes

12 B1 register : paddy consumption summary Yes

13 Levy management and configuration state-wise Yes

Contd..


Tally.ERP 9 Fitment - Mill Administration


14 Export reports Yes

15 Per kg cost of rice Yes

16 Per ton cost of rice Yes

17 Item-wise reports :rice, broken, bran, husk Yes

18 Lab report : bran oil content Yes

19 Foreign currency handling in export sales Yes

20 Daily production report Yes

21 Production report item-wise Yes

22 Production report contract-wise Yes

23 Mill supervisory team’s movement register to see the mill activities

Yes



MILL ACCOUNTS

MIS REPORTS

RIC

E SALES

MILL

ADMINISTRATION

PADDY P

URCHASE

Rice Mill Business – Accounts and MIS Reports



Primary Requirement – Accounts and MIS Reports


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


1 Daily receipts and payments Yes

2 Bank reconciliation Yes

3 Branch transfer management Yes

4 Branch sales and purchase management Yes

5 Multiple payment handling Yes

6 Synchronization with ho-branch-outlets Yes

7 Staff attendance handling Yes

8 Salary payments and pay slips Yes

9 Agent commission handling on paddy purchase and rice sales in mandi market

Yes

10 Staff database handling Yes

11 Bonus, incentives management Yes

12 PF forms Yes

13 VAT forms Yes

Contd..




14 Post dated cheque realization report Yes

15 Branch wise payments and receipts Yes

16 Branch wise sales and purchase Yes

17 Agent-wise mandi sales report Yes

18 Daily sales report – item wise Yes

19 Daily sales report - branch wise Yes

20 Stock summery report Yes

21 Branch wise stock summary Yes

22 Branch transfer report Yes

23 Outstanding receivable and payable Yes

24 Trial balance Yes

25 Remote access Yes

26 Profit and loss account Yes

Contd..



27 Balance sheet (also schedule VI) Yes

28 Group company Yes

29 Budget setting for the mill Yes

30 Bill-wise profitability Yes

31 Reminder letters , e-mail Yes

32 Multiple payments reports Yes

33 Item wise profitability Yes

34 Ability to send SMS to farmers and agents as reminders for payment

Yes



Thank You

For any queries, please contact @: [email protected]

To find out more, Visit us @: http://www.tallysolutions.com/website/html/solutions/segment-vertical-solutions.php

Documents

© Tally Solutions Pvt. Ltd. All Rights Reserved Tally.ERP 9 For Rice Mills