Enterprise Resource Planning (ERP)

The Enterprise Resource Planning (ERP) application is an end to end solution that enables
manufacturers, distributors and retailers to maintain and manage their master accounts, pricing, order
fulfilment, invoice generation and reports. This application also allows to manage transport carrier and
bank information. Using this app, business can generate daily, monthly, yearly reports such as balance
sheet, profitability reports and other useful accounting reports. With this application, there is no need to
have any additional accounting application to generate Balance sheet, Trial Balance, Ledger or any other
accounting reports. Everything is managed within this solution.

The current system is developed on visual basic and is locally hosted for each client/customer. Currently
this application is widely used by textile industry. Following are the short comings of the current system

1. It needs to be customized manually based on specific customer requirement resulting in long

delivery time.
2. It is locally hosted hence prone to cyber-attacks
3. Application maintenance is tedious as it involves changes on every client’s local machine based
on their requirements.

The new proposed system, is the technology enhancement that would help us overcome the short
comings of the existing application and will be generic across different industries. It will also include
some ready to use dashboards that will help business to take actionable decisions. The system will be
cloud based and will be developed on PHP initially and eventually will be moved to Python. Following
are the advantages/benefits of the proposed system.

1. Application deployment will be faster as single version of application will be maintained on

cloud.
2. Maintenance costs and efforts will be reduced.
3. Customization for clients would be easier after being hosted on cloud.
4. Application will be available to clients no matter where they are.
5. As cloud is a flexible facility it can be up-scaled or down-scaled depending upon circumstances.
6. Enhanced security will be available by hosting the application on the cloud. This will prevent
cyber-attacks.
7. It will be more reliable as issues can be resolved quickly as the data will be hosted on web.

Features of the Application

All the features mentioned in this document are currently available in the application and the same
features will be made available in the new cloud version of the application.

Master Tab:
This tab has master forms that are available in the application. These forms allow to add, delete and
maintain master details of customer, purchasers, transport company, account grouping and so on.
Below is the screenshot of the same.
Account Creation/ Account Master: This module is designed to capture customer, purchaser details. A
user can add, modify or delete records in this module. On high level, each account needs to be classified
in one of the predefined groups such as liability, asset and so on.

 Address Tab: The details captured in address tab are party address, area zone (this is classified
as west, east, north and south). GSTN No and state code. All this information is required during
order management and invoice generation. Below is the screenshot of the account master
address tab.

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 In personal details tab: TDS nature field is critical, it is specifically used for job work. If Is TDS
Applicable field is enabled, then based on the PAN No the TDS percentage is auto calculated in
the backend. Below is the screenshot of the fields under personal details tab.
 Debtors details: In this tab party’s bank details are captured along with broker and transport
details. Below screenshot has complete field list available in this tab.

o In textile business, broker plays a critical role hence it is important to add broker details
as master data.
o The transport name is captured as master detail as this information is required during
billing/invoice generation.
o For each party the credit limit is defined in the master tab, the credit limit can be an
agreed amount between the party and the business. The credit outstanding will be
shown in each invoice generated for a given party based on whether outstanding
checkbox is being ticked or not. For e.g. If the credit limit set to 2 lac per month has
been reached and is outstanding checkbox has been ticked, then during invoice
generation an alert will pop up mentioning the outstanding limit has been crossed. This
is one of the several form validations in the application.
o The outstanding recovery will be auto updated based on payment received from the
party
o Interest Percentage, this field is used to define the interest percentage that will be
charged to the party in case of late payment.
  Corresponding: This tab captures additional address detail information. The information
captured in the address tab can be used for printing labels as well using the print command
available to right of the screen. Below screenshot provides complete attribute list.

Account group: In Account Group Master, the standard main groups are predefined in the application.
Based on these main groups businesses can define sub groups depending upon their business needs.
Whenever a new account/party is created in account master module, they are classified as debtors,
creditors, liabilities, asset, employee and so on in the master. The idea behind creating this grouping is
to report balance sheet, P&L and other accounting reports efficiently.

Party Group: This feature is used a single party owns multiple handloom factories under different
names. This feature enables us to group the relevant parties under one party group.

Narrations: This module helps business to define standard narrations. These narrations are then
available in the drop-down list to pick and choose for bank payment, invoice generation and so on.

Transport Master: The business maintains a master list of all the transports with whom they do
business. This master list is then available as a drop down for them to pick and choose while billing.

Add/Less: This add less feature enables a user to define any deductions or additional charges. These
pre-defined deductions are then available as drop down in deductions field of the sales bill. Based on
the deduction selected the amount is auto calculated in the backend to reflect right numbers.

The discounts mentioned in the account master for a party is auto populated while creating a bill for
that party. This master discount cannot be override by adding any additional discount while creating a
bill. Hence if there is a need to have a flexible discount percentage to be added, it is recommended to
add those discounts in the add/less tab and then include them while creating bill.

Godown Master: This is used to maintain inventory for the business.

Purchase Agent Master: Raw material (such as yarn, cloth) purchase is made via agent. The details of
those purchase agent is captured via purchase agent master form. These agents are commission based,
the purchase agent needs to be added for each purchase entry recorded in the system. Depending on
amount of raw material purchases made through an agent and his commission percentage, purchase
broker report is generated to show the outstanding amount.
Bank Master: Using this master tab business can store multiple bank account information. This master
will allow to calculate the interest amount on the overdraft or cc bank accounts.

Brokerwise Rate List: Price list form, is used to capture material pricing details such as item name, size
and rate based on each broker. The rate information is then auto populated during packaging slip
creation and invoice generation based on broker and item selected.

Party+Trade List: If a business has 3 parties/customers in same area e.g. Kolhapur in that case same
item/material is sold to parties under different name tag. Such material details is maintained in this tab.

Stamping Master: Each item is stamped with material details such as item name and size. A given
material can be sold under different name tags to different parties. This different stamping names for a
given material is maintained in this master form. The stamping names are added in the packaging slip
and invoice.

Size Master: This form is used to maintain all the different sizes for any given material/item.

Item Master: Original item information such as item type, sub type and other details are captured using
this form. This information is required during invoice generation to provide a summary of the sold items
with its quantity and price. Below screenshot show the attributes of the item that are captured in this
form.

Broker Change in Sales: This form allows user to change existing broker name to a new broker name.
This feature is required in case broker requests to receive a check under different name than the one
mentioned in the invoice. With the update done using this form new updated broker name is reflected
in every invoice generated against this broker. This feature was highly used before GST was introduced,
with GST once an invoice has been generated no changes can be made to change the broker name
hence this feature isn’t used anymore.

Courier Master: All the courier dispatch challan details are maintained in this master form. Below
screenshot show the details that are captured. The courier is sent on daily basis, but the courier bills are
settled with the courier company once a month. While settling the monthly bill, business validate the bill
received from courier company against the courier register that is maintained by the business.
Once the courier is dispatched, business sends a SMS to their respective clients with dispatch details.

Accounts Tab:
Sales Invoice generation: Bill is generated based sales and returns. Below screenshot shows separate
bill is generated based sale item and return type.

In sales bill, all the master information is added as shown in the below screenshot.

The LR number field is critical in sales bill generation. Once a courier is dispatched, the LR number is
provided by courier service the next day. On receiving the LR number, the same is updated in the
invoice. Post LR no. is updated in the invoice, SMS is sent to the customer confirming the order has been
dispatched, the invoice is then printed and sent to customer.

Based on customer bill, an accountant or user can view the ledger, outstanding and register of that
customer. Hence using customer bill, a complete history of the customer can be seen.

Purchase: Purchase is classified as grey, finish goods, process, yarn and other purchases. Also, separate
purchase return forms are maintained for grey and finish goods.

In purchase process form, the process type is identified in Purchase A/C field. The party name to whom
the job work is assigned is captured in party name field. Based on the TDS information maintained in the
account master for the given party the TDS amount is calculated in the backend and the detailed
amount bifurcation is displayed in the purchase process form. Below is the screenshot of the same.

Payments: Payment can be done using bank or cash. Cash payment was used before GST was
introduced to make some cash adjustments.

For bank payment, accountant needs to provide bill details, amount to be paid, party name, bank name
and other details shown in below screenshot. Based on the bank payment information outstanding
amount is updated by adjusting the amount paid.
Receipts: Receipts are used to maintain payment records received from customer. Receipts are also
classified as cash receipts and bank receipts. In the bank receipts bill number, amount, bank, party and
other important details are maintained. Based on the amount received the outstanding amount is auto
updated for a given party.

GST Debit Note: With GST implementation, it is critical to have track record of how much GST amount
has been debited, when business returns the purchased goods to the supplier. The record is tracked
against the original order bill. Once the debit record is fed into the system, a voucher of the same is
printed and maintained in the physical file for the audit.
GST Credit Note: With GST implementation, it is critical to have track record of how much GST amount
has been credited, when customer returns the purchased goods to the business. The record is tracked
against the original order bill. Once the record is fed into the system a voucher of the same is printed
and maintained in the physical file for the audit.

Journal Voucher adjustment: This is mainly used to capture all the yearend closing entries such as
brokerage, interest, depreciation, prepaid expenses and so on.
Bill to Bill Adjustment: This feature is used when material is sold to one party which in turn sells the
material to another party due to some reason. Under this scenario the payment is received from the
final party and the outstanding bill amount needs to be adjusted for the party against whom the bill was
originally generated. This kind of adjustment is done using Bill to Bill adjustment. This feature was used
before GST implementation. Now it is no longer used.

Order --> Purchase Contract/sales confirmation: Whenever an order is made the details of the
purchase/sales order is captured in purchase contract/ sales confirmation form. Based on the order
details captured in this form the worker start working preparing the orders. Using these entries daily
purchase contract report and sales against confirmation reports can be generated at the end of the day
to see how any orders were received and were made ready for delivery.

Reports Tab:
Below screenshot shows different list of reports are generated
Account Ledger: This application enables a business to generate account ledger in standard format and
also based on party, day, month and even in T Format. Below screenshot show how business can create
ledger in different formats

Register Printing: Enables business to create sales register based on parameters such as Party,
Sales/Purchase, Broker, Grey quality, Transport, City, Party group, Head trade. Purchase register is
created based on purchase cloth, purchase finish good, purchase process, other purchase, purchase yarn
and all purchases. For journal vouchar simple register report is created.

Account Summary: This report tab allows business to see party wise report with debit credit amount
details.

Internal Balance Report: This freature is used under multi firm scenario. One business with multiple
firms. Using this report business validates their credit debit against internal firms.

Interst Calculation: Interest calculation can be done based on late payment it can be generated based
on broker or party. The report that is generated is sent to respective party. Based on the report business
and party comes to an agreement on the interest amount that the party will pay. A Journal vouchar is
the created for the interest amount that the amount is the credited in the account.

TDS Report: Every month business has to pay TDS based on the TDS report. User needs to provide some
input parametes such as start date, end date, purchase account and party name if report needs to be
generated for a specific party. The total amount TDS shown in the report is then paid.

Broker Commission Report: In the brokerage commission report user needs to provide start date, end
date and TDS %. Based on these input values report is created that shown the net amount to be paid to
the broker.

Expense Chart: This feature shows overall expenses that business incurs against each month in a report
and chart a chart format. This allows business user to have a quick overview of all the expenses
associated its business.

All Deleted Records: This feature captures all the records deleted by the business user in the system.
GST Reports: This feature allows business to create sales register, purchase register and sales+purchase
register together. This register report provides the total GST, net GST payable amount. GSTR 1 report
and GSTR 2 report are the reports that are generated and exported in excel. These reports are then
uploaded in offline GST tool and then further uploaded on GST portal and is submitted online.

Balance Sheet: Balance sheet report is generated based on account groups that are identified and
assigned in the master. Based on the account groups summary or detailed balance sheet report can be
generated. With this feature business doesn’t need to push generation of Balance sheet in Tally.

Utilities Tab:
Change Company: If the software is enabled to support multiple firms then admin user can switch from
one company to another to manage data

Change Year: This feature allows user to switch across different accounting year.

Backup: This allows business to take complete back up of the app on regular interval.

Carry Forward: This feature allows user to carry forward their closing balance, sales outstanding and
purchase outstanding to next accounting year.

Switch Tab:
This tab allows user to switch across different firms that business owns. With this switch feature the
master data remains common across all the firms to ensure data integrity and avoid data redundancy as
same master data will be used across different firms.