ERP for trading business.
ERP for warehouse management / distributors
ERP software Scope.
The following are some key business processes (or procedures) which can be
managed using ERP software. In ERP parlance, they are referred as ERP modules.
Some of these, or all of these, modules may be applicable in your organization,
depending on the business requirements.
This is a general list of major input and output.
1.1.1. User Manager.
1.1.2. User group master.
ERP is multi user, multi tasking ERP software. Multi-level security based on
User Group and User Level.
1.3. Create Login id and password for each user.
1.4. Assign permissions. Map each user with menu / submenu.
1.5. Restricting user access with login and password.
1.6. Role based access & password.
1.7. Audit trail: ERP ensures accountability of users. Work done by individual
users can be easily tracked because all transactions capture the users name
1.8. Automatic Audit Trail helps top management to know who has updated Masters
or transaction and when.
1.9. Each menu and submenu can be locked (allow / deny) including MIS
(Management Information System) reports to individual user in a very user
friendly screen with tree structure and check box facility.
Accounts Module – General Ledger Accounts
2.1.1. Account Group Master.
2.1.2. Subgroup Master.
2.1.3. General Ledger Account Head Master with Tax, Bank, Cash bifurcation.
2.1.4. Detail Account Master.
2.1.5. Narration Master.
2.1.6. TDS (Tax Deducted at Source) and % fields in the supplier / address
(TP) masters. Automatic posting in GL. ERP will create a JV automatically.
2.2.1. Cash receipt voucher.
2.2.2. Bank receipt voucher.
2.2.3. Cash payment voucher.
2.2.4. Bank payment voucher.
2.2.5. Service-tax payment (for excise link).
2.2.6. Journal Voucher.
2.2.7. Contra-entry voucher.
2.2.8. Credit Note.
2.2.9. Debit Note.
2.2.10. Expense PO (for service provider, optional).
2.2.11. Expense voucher (for service provider bill booking).
2.2.12. Adjust unlink receipt with open sales invoice.
2.2.13. Adjust unlink payment with open GRN (Purchase bill / expense bill).
2.2.14. Closing balance for master data (debtor, creditor, and GL
2.2.15. Rate of depreciation (as per company act).
2.2.16. Rate of depreciation (as per I-Tax act).
2.2.17. Asset installations slip.
2.2.18. Asset sale transaction. (For asset register and deprecation
Key MIS reports:
2.3.1. Trial Balance. Option of various kinds of formatting, such as -
GL wise Tr. Balance. Sub-group wise Tr. Balance. Group and GL wise Tr.
Balance. Group and sub-group wise Tr. Balance. (Option of T- format = only
2.3.2. Sub-ledger trial balance. (Supplier / customer).
2.3.3. Consolidated reports of multiple locations for one company in
Accounts Module. E.g. ERP gives factory wise or branch wise plus consolidated
for the head office.
2.3.4. Cash Book.
2.3.5. Bank Book (supports multiple banks) with receipts, payments &
2.3.6. Expense voucher register.
2.3.7. Journal Voucher register.
2.3.8. General Ledger. (Account head wise or all accounts with details
under General Ledger). Filter available for amounts < than, > than and =.
2.3.9. Credit note register.
2.3.10. Debit note register.
2.3.11. Contra-entry register.
2.3.12. Fixed Asset register.
2.3.13. Depreciation schedule (as per company act).
2.3.14. Depreciation schedule (as per Income Tax act).
2.3.15. Profit & Loss account. (GL wise and sub-group wise). For
multi-location user can make consolidated P & L report.
2.3.16. Balance Sheet. (GL wise and sub-group wise).
2.3.17. Bank reconciliation statement.
Exceptional MIS Reports
This will give at a glance the highlights of certain figures to the top
management viz. purchase, sales, money receivable, money payable, bank balance,
2.4.1. Automatic posting in respective G. L., from goods inward and sales
2.4.2. TDS procedure takes care of automatic TDS posting.
2.4.3. Service tax procedure takes care of automatic posting in related
2.4.4. Help of Standard Narration master saves time to enter voucher.
2.4.5. All reports with drill down facility down to transaction level.
VAT / Sales Tax Module
Key MIS reports:
3.1. ERP takes care of all VAT (Value Added Tax) / CST (Central Sales Tax)
related procedures and the same is linked with other relevant modules. The same
is customized as per the rules applicable.
Capturing from various transactions taxes details such as Sales Invoice, GRN
(Goods Receipt Note), Sales RGN (Sales Return Goods Note, GIN (Goods Inward Note
material from subcontractor etc.
3.2. Capturing VAT / CST / Service tax components in
3.2.1. PO, GRN, JO, GIN, Exp, PO, Exp. Voucher, etc. Can default from item
3.3. Sales Tax – VAT & CST statements
3.4. Link to the GL (General Ledger Accounts).
3.5. Store CST number / TIN number etc. on the masters. In Invoice, ask for
TIN number of consignee and display on invoice.
3.6. C Form tracking – Sales
3.7. C Form tracking – Purchase
Material Management (MM) Module
This includes the following business processes
· Inventory Management Business process
· Purchase Business process (Local procurement within India)
· MRP (Material Requirement Planning) with drill down to last child
· Import Purchase Business process
Inventory Management Business process
5.1.1. Unit-of-Measurement (UOM) Master.
5.1.2. Category Master / Subcategory Master / Sub-group master.
5.1.3. Item Master.
22.214.171.124. Raw Material (Bought out) Item Master and list.
126.96.36.199. Packing Material Item Master and list.
188.8.131.52. Factory Made (SFG or Semi-Finished) Material Item Master and
list for WIP inventory.
184.108.40.206. Finished Goods Item Master and list.
5.1.4. Main Location Master – (sub-contractor location).
5.1.5. Sub-location master (stores, shop floor) and subcontractor location.
5.2.1. GRN or Goods Receipt Note. Linked to Stores as well as creditor
5.2.2. Stock transfer challan. For transferring material from one location
to another location.
5.2.3. Stock Transfer Challan - material issued to shop floor link to the
Work Order as per BOM. (Optional).
5.2.4. Material Issue Note (MIN) to consume / material from a ‘given’
5.2.5. Stock Adjustment (SAN) to increase or reduce stock from a given
location. This transaction is useful to get match physical inventory with stock
5.2.6. Physical stock slip to enter actual stock in a given location.
5.2.7. Closing balance master entry (as of cut-off date, one time entry).
5.2.8. Conversion process Purchase return for
non-excisable goods or
Return to Supplier. RTV. This is linked with the material received and
accounts entries are automatically generated by ERP. This will debit the
supplier in supplier ledger. Or User may create Tax Invoice (sales -for
Key MIS reports:
5.3.1. List of category, sub-category, and sub-group.
5.3.2. GRN register (list) of items under “inward inspection".
5.3.3. Stock Transfer Challan register (STC) - Filter provided for ‘normal’
STC and STC with Work Order.
5.3.4. MIN (Material issue note) register. (Location wise).
5.3.5. SAN (Stock adjustment note) register. (Location wise).
5.3.6. Stock Statement for all types of material as well as WIP, a given
220.127.116.11. With quantity (location wise and category wise filters).
18.104.22.168. With quantity and Rate (location wise and category wise
5.3.7. Item Ledger (location wise)
22.214.171.124. With quantity (location wise and category wise filters).
126.96.36.199. With quantity and Rate (location wise and category wise
188.8.131.52. Item ledger summary gives the stock of material at all locations
– Drill down to ledger for any given location.
5.3.8. Physical stock and system stock (book stock) variance report.
5.3.9. Stock Valuation report. (With option to generate WAR – weighted
5.3.10. RTV Register (Return to supplier – non-excisable items).
5.3.11. Item List. (With option to select any or all fields from item master).
5.4.1. Various cost rate stored on Item master if required, such as Weighted
Average Rate, last pure purchase rate, etc.
5.4.2. Conversion Factor (relation between Purchase UOM and Issue UOM).
Payment UOM and Payment conversion factor.
5.4.3. Optional Online link with picture of an item (.JPEG file).
5.4.4. Optional hyperlink with an AutoCAD drawing.
5.4.5. ISO 9000 Facility to keep material in HOLD location – i.e. item under
inspection, QC person can login and enter Accepted / Rejected Quantity to
transfer material to Stores. Separate ledger shows item in Hold, Stores and
5.4.6. Lot number / Batch number / Serial number / heat number tracking of
5.4.7. For FMCG products user can store Inner Box / Outer Box data for
shipping, or volume / weight of the box on item master. (Optional).
5.4.8. Automatic calculation of landed-cost of item received and updating the
same on master for valuation purpose.
5.4.9. Just-in-time (JIT) inventory management by linking the MRP (material
requirement planning) module and inventory module.
5.4.10. Pending list of returnable items - RTV (return to Supplier with auto
5.4.11. Item wise consumption.
Purchase & Pre-purchase Module
6.1.1. Supplier Master (Supplier List).
6.1.2. Supplier Type Master.
6.2.1. Purchase Requisition (Linked further to Purchase enquiry).
6.2.2. Purchase enquiry.
6.2.3. Purchase quotation.
6.2.4. Preparing Purchase Order. This can be saved as .PDF file and email to
Key MIS reports
6.3.1. Purchase requisition Register.
6.3.2. Purchase Order Register.
6.3.3. Purchase Order status Register with optional alert flag – when
delivery period elapsed, P.O. being highlighted.
6.3.4. Creditor Ledger.
6.3.5. Supplier master list.
6.3.6. Supplier Performance Rating / Supplier Rating based on quality,
6.3.7. Warning letter generation based on poor performance/service.
6.4.1. Auto transfer of Rejected Quantities to rejection stores location.
6.4.2. Link to payment voucher with required validation to the GRN (Goods
6.4.3. Item specification document as per ISO 9000 requirements can be linked
to PO (.pdf) file; Drawing number, etc. can be shown automatically.
6.4.4. Capturing of Excise, Cess and S & H Education Cess information
6.4.5. Item 'accept / reject' quantity to be put by a separate password - by
6.4.6. Purchase officer can make PO based on Material Requirement Planning
report, or based on ROL based report.
6.4.7. Purchase Indent ‘Automatic’ alert to Purchase Department.
6.4.8. Purchase Order ‘short-closed’ facility.
6.4.9. Purchase Order Revision Provision. (Amendment).
MRP - Material Requirement Planning Module / Supply Chain Management (SCM)
This module is applicable for the Finished Goods (products), where the first
level child item is shown.
7.1.1. Sales Order (Export or Domestic) or Projection based input.
7.1.2. Sales Schedule – from date and to date and quantity given by customer
Key MIS reports:
7.2.1. Material Requirement Plan
7.2.2. ROL based Material Requirement report (items below Re-Order Level)
Customer Master. Item Master. Customer Master.
7.3.2. Purchase Requisition (purchase indent) can be prepared based on the
MRP report – shortage quantity MIS.
7.3.3. MRP based on the ReOrder Level (ROL).
7.3.4. MRP considering stock in hand.
7.3.5. Automatic calculation of ROL depending upon consumption.
Import Purchase Module
8.1.1. Foreign supplier Master (Supplier List).
8.1.2. Foreign supplier type Master.
8.2.1. Import purchase Order for foreign supplier (in foreign currency).
8.2.2. Import GRN (Goods Receipt Note) when material is received from foreign
supplier (in foreign currency).
Key MIS reports:
8.3.1. Import Purchase order register
8.3.2. Import GRN register – supplier wise information
184.108.40.206. Import GRN register – item wise information.
8.4.1. Capturing custom duty, CVD, Edu. Cess, etc, and other relevant
information in ERP.
8.4.2. Indian Rupees and Foreign currency exchange rate stored at
the time of importing.
9. ISO 9000 – Quality check
10.1. Quality check for inbound material. The Goods received with
respect to purchase order are kept in a 'HOLD' location or location for material
under inspection. The stores will enter challan quantity and received
quantity. The QC inspector will reopen the GRN with his / her password and
enter the accepted quantity.
10.2. Quality check for outbound material / Finished Products. At
the time of shipping, QC check and relevant certificate can be fetched as
standard word document file.
Order Fulfillment Module
1. CRM – Customer Relationship Management
2. Sales Module.
CRM Module (Customer relationship management) and pre-sales module.
15.1.1. Marketing Master – Commercial terms.
15.2.1. Sales Enquiry.
15.2.2. Sales Quotation (as per ISO format).
15.2.3. Internal Order Acceptance (Internal ORI).
15.2.4. Order Acceptance or OA or Sales Order, (Customer Purchase Order link).
Order Receipt Information (ORI). [With Sales Schedule -Optional]
15.2.5. Proforma invoice (optional).
15.2.6. ORI status entry by Marketing/Production/Dispatch Department
Key MIS reports
15.3.1. Enquiry Register. Automatic report of enquiries for which quotation
15.3.2. Quotation Register. Automatic report of quotation for which order not
220.127.116.11. Automatic Pending Quotations Report (Quotation given but order
15.3.3. Order Acceptance (Sales Order) Register. ORI register – (i) All; (ii)
Open; (iii) Used; (iv) Amended; (v) Booked; and ((vi) Terminated.
18.104.22.168. Automatic Pending Orders Report (order received but not
15.3.4. Proforma invoice register.
15.3.5. Customer rating based on share of business, payment promptness.
22.214.171.124. State wise ‘Road permit’ info. (Master).
15.4.2. Sales Officer wise Order booking.
15.4.3. Multiple contact names for one customer can be stored with their
individual email id and cell number. This helps in follow-up with the right
15.4.4. Sales schedule linking (optional).
Sales Module. (Shipping).
F. G. inventory (dispatch) and sales accounting.
16.1.1. Customer Type Master.
16.1.2. Customer Master.
16.1.3. Enquiry type master.
16.1.4. Delivery mode master.
16.1.5. Sales coordinator master.
16.1.6. Officer Master (engineer or staff name can be attached to customer.
16.2.1. Commercial Invoice
16.2.2. Sales Invoice. Preparing Challan cum Sales Invoice (CCI)
126.96.36.199. Tax Invoice (Domestic). Link to Order Receipt Information
(ORI)/Internal ORI (Projection ORI for stocking)
188.8.131.52. Scrape sales Invoice.
184.108.40.206. Trading Invoice. (Optional)
220.127.116.11. Invoice with zero sales value (free samples). Complementary.
18.104.22.168. Purchase return invoice. (For excisable material returned to
16.2.3. Sales Return transaction. Goods returned from Customer.
16.2.4. Automatic Inspection Report (QC) for finished goods along with sales
invoices (ISO 9000).
16.2.5. Replacement Challan non-excisable (linked to sales and RGN).
16.2.6. Stock Transfer Invoice. (To transfer material to own stock locations,
such as branch, franchises, etc.).
16.2.7. ‘Repairing Invoice’ (Sales bill towards repair service charges).
16.2.8. Packing Slip
Key MIS reports
16.3.1. Invoice register – Customer details.
22.214.171.124. Invoice register – Product (item) details.
16.3.2. RGN (Return Goods Note) register.
16.3.3. Transfer Invoice register (Optional).
16.3.4. Trading Invoice register (optional).
16.3.5. Ledger. (Debtor Ledger).
126.96.36.199. Customer ledger.
188.8.131.52. Age wise outstanding report
184.108.40.206. Age wise overdue report
16.3.6. Product wise invoice list.
16.3.7. Customer Master List. User can select fields to prepare excel file,
e.g. to prepare phone book, select customer name, phone number, email id.
16.3.8. ‘Repairing Invoice’ Register.
16.4.1. Multiple Delivery sales schedule (Sales Order) Report.
220.127.116.11. Sales invoice link to sales schedule (for OEM).
16.4.2. Replacement management – linked with inventory and sales accounting.
16.4.3. Sales Returned Goods Note (RGN) for item received back, link to sales
account and excise.
16.4.4. Sales Invoice Link with sales order (ORI) to ensure accurate and fast
16.4.5. Automatic posting to Customer Account, Excise Books, VAT / Sales Tax,
16.4.6. Information about the Contact details such as multiple contact person
names, telephone numbers, email id, etc., for Customer.
Export Sales Module
19.1.1. Country – currency master
19.1.2. Customer Master (with country information)
19.2.1. Export Order – captures foreign customer's sales order information, and
is linked to the Export invoice.
19.2.2. Foreign Currency export invoice
19.2.3. Form ARE 1 is prepared automatically with the export sales invoice
19.2.4. Packing List (automatically prepared with export invoice).
19.2.5. Commercial Invoice
19.2.6. Export Proforma Invoice
19.3.1. Facility to enter current Exchange rate
19.3.2. Foreign Currency Order Receipt Information (export ORI)
Distribution Module for standard products sold through channel partners /
distributors / stockiest / agents / franchises
Sales through franchises / channel partners / distributors / dealers / agents /
stockiest / CFA. (Optional).
20.1. Dispatch Order created by Head Office to factory for dispatch
of material to channel location.
20.2. Transfer Invoice. Preparing online Stock Transfer Invoice
(to Depot / franchises / Branch transfer). From factory to own inventory
location linked to Dispatch Order.
Automatic email alerts module
24.1. Email id Master for sending auto emails
24.2. Alerts user for items falling below ReOrder Level (ROL)
24.3. ORI pending since defined days. Order received but dispatch
24.4. Pending Purchase Order since defined days.
24.5. Pending customer Bills since defined days/Months.
24.6. Bank balance going below defined amount.
24.7. Non-Moving Items.
24.8. Daily Sales to TOP Management.
Automatic SMS to mobile phone
ERP prepares reports instantly which can be exported to
MS Excel file. Now this excel file can be sued to send SMS to mobile directly,
but SMS text can change dynamically, as per the work sheet column data.
25.2. B2B or B2C communication anywhere anytime from ERP.
25.3. SMS Gateway is designed to integrate seamlessly with
28.1. Remote Connection from another computer using Internet.
ERP also supports Remote Login where user can access ERP
Server using Internet.
Payroll and HR
29.1.1. Employee master
29.1.2. Earning heads & deduction heads Master
29.1.3. Department master (Cost Center)
29.1.4. Designation master
29.1.5. City master
29.1.6. Bank master
29.1.7. Bank-Branch master
29.2.1. Attendance – The number of days present by an employee will have to be
punched in the system by the concerned official of the HR Department.
29.2.2. Pay slip
29.2.3. Monthly Deductions.
29.2.4. Income Tax Monthly Challan Entry
29.2.5. Income TAX Quarterly Acknowledgement Entry
29.3.1. Employee list
29.3.2. Payroll Register
29.3.3. Earning head wise register
29.3.4. Deduction head wise register
29.3.5. Attendance Register
29.3.6. ESI Report.
29.3.7. PF Report.
29.3.8. Leave Encashment Statement.
29.3.9. Professional Tax [Professional Tax] Statement
29.4.1. Daily wages, monthly wages – salary calculations.
29.4.2. Attendance types – absence, paid leave, unpaid leave, etc.
29.4.3. Loans and advances to employees
29.4.4. Employee type – manager, operator, etc.
29.4.5. Automatic calculation of income tax in pay-slip every month based on
Earning and Deduction feed into the system.
Supply chain management:
A big trend is for
organizations to blend their operational functions under the umbrella known as
supply chain management. Often, the first two functions to merge are purchasing
and inventory management.
So, as a purchasing professional, you must understand inventory management
principles to remain valuable.
(1) You must know how much inventory to have on hand to ensure continuity of
supply in the event of an uncharacteristic increase in either demand and/or lead
time. This quantity of inventory is called the safety stock.
(2) You must know
when to reorder materials for inventory. Generally, this point in time is
determined when the quantity of materials in stock decreases to a certain level,
called the reorder point. The reorder point is determined by the formula:
ROP = SSQ + (QUD x ALT)
ROP = Reorder Point
SSQ = Safety Stock Quantity
QUD = Quantity Used Daily
ALT = Average Lead Time (in days)
(3) You must know how much to order. A complex mathematical equation determines
the Economic Order Quantity, or EOQ. The equation recognizes the tug of war
between acquisition costs and inventory carrying costs: when you order bigger
quantities less frequently, your aggregate acquisition costs are low but your
inventory costs are high due to higher inventory levels. Conversely, when you
order smaller quantities more often, your inventory costs are low but your
acquisition costs are higher because you are expending more resources on
ordering. The EOQ is the order quantity that minimizes the sum of these two