What is the best ERP for an Indian manufacturing MSME?

Five things are entry conditions for an Indian shop. A system that is strong on all of them but weak on job costing still leaves you guessing on margin, so treat them as the first filter and not the whole decision.

• GST: tax rates by item and place of supply, HSN codes on items, and invoice data your accountant can file from.
• Job work: material sent to a subcontractor under a challan, received back as processed parts, with the vendor bill costed to the job.
• E-invoice and e-way bill rules that apply above turnover thresholds; check the current limit for your business.
• Rupee pricing and invoicing with no currency conversion on every bill.
• Support during Indian working hours, in a time zone where a reply arrives the same day.

Most Indian MSMEs already run Tally, and many accountants will not leave it. That gives two workable patterns. In the first, the ERP owns stock, production and job costing, and sales and purchase entries are exported to Tally in a format the accountant can import. In the second, the ERP has its own double-entry ledger with GST rates and reports, and the accountant works in it directly, with Tally retired or kept for a transition year. The pattern to avoid is typing the same invoice twice. Ask any vendor to show the export, or the ledger, before you decide.

These names come up most for Indian manufacturing SMEs, with what each is generally known for.

Price in rupees over three years, including seats you will add and any implementation fee. Ask whether the price is per user, per bundle or flat, and whether it is billed monthly or annually. Then ask about support: hours, channel and typical reply time. A vendor whose support team starts work when your shift ends will cost you a day on every question. Finally, ask whether other shops in your city or industry use the system, so you can talk to a peer rather than only a salesperson.