Chapter 1: Introduction to ERP and Cloud Computing

 ERP System: ERP (Enterprise Resource Planning) integrates various business functions (e.g., accounting, HR,
CRM, inventory) into a single system to improve accuracy, consistency, and collaboration. Key benefit: Provides
a single source of truth for all business data.
 Cloud Computing: Delivers computing services over the internet (XaaS: Everything as a Service). It reduces the
need for companies to maintain their own servers, lowering costs.
 Types of Cloud Deployment:
o Private Cloud: Exclusive to one organization, often with high security.
o Public Cloud: Shared resources managed by third-party providers, cost-effective.
o Hybrid Cloud: Mixes public and private models for flexibility and control.
 Key Cloud Features: Agility, location independence, multi-tenancy, reliability, scalability, and ease of
maintenance.
 Smartbooks ERP on Cloud: A web-based ERP suited for SMEs, designed to be simple, affordable, and
accessible with low technical requirements.
Chapter 2: Smartbooks Framework and Navigation
System Structure:
o Transaction Processing: Captures transactions in three cycles:
 Revenue Cycle: Tracks income generation from sales.
 Expenditure Cycle: Manages purchasing and expenses.
 Project Management Cycle: Supports project-related financial tracking.
o General Ledger (GL) and Financial Reporting: Generates financial statements (Income Statement, Balance
Sheet, Cash Flow) for external reporting.
o Management Reporting: Provides reports for internal decision-making.

Smartbooks Interface Overview

1. Top Interface Parts:
o Header: Shows company name and logo.
o Modules Menu: Main navigation area with modules like:
 Favorites: Bookmark frequently used functions for easy access.
 Admin: Manages settings and users.
 Financials & Accounting: Generates reports and journal entries.
 Inventory Management: Manages stock, pricing, warehouses.
 Sales & Distribution: Handles orders, invoices, and customer accounts.
 Purchasing: Manages buying, supplier records, and accounts payable.
2. User Options:
o User Info: Shows profile and lets you change password or log out.
o Extension Button: Display features such as theme color, change password, and messages.
o Theme Button: Changes color theme.
o Logout Button: Logs you out.

Basic Navigation and Functions

 Copy From: Copies data from other modules.
 Preview: Views records as PDF or Excel.
 Navigation Buttons: Move through records (First, Previous, Next, Last).
 Add/New: Creates a new record.
 Update: Edits a record.
Form Functions
 Document Link: Connects to master data or documents for more detailed information.
 Selection List: Quick search option for fields like items or suppliers.
Chapter 3: Master Data and Document Handling
1. Purpose of Master Data:
 o Master Data stores essential information about business partners (customers, suppliers), inventory items,
and accounts, which supports efficient document processing.
o Master Data helps reduce data entry errors by auto-filling fields in related documents like invoices,
purchase orders, and vouchers.
2. Types of Master Data:
o Customer Data: Describes customers who purchase goods/services. Used in order processing and
invoicing.
o Supplier Data: Describes suppliers providing goods/services. Used for managing payables and delivery
processing.
o Item Data: Details inventory items or services. Used in sales, purchasing, and inventory management.
3. Structure of Master Data:
o Customer/Supplier Record:
 Header: Includes Code, Type, Name, Currency, and Business Style.
 General Tab: Contact info, default document values, and active status.
 Contact Persons Tab: Details on individuals associated with the customer/supplier.
 Addresses Tab: Billing, shipping, and company address details.
 Payment Terms Tab: Standard payment terms.
 Accounting Tabs (General & Tax): Control account information and tax details.
o Item Record:
 Header: Code, Name, Category, and Class.
 General Tab: Visibility permissions across modules (e.g., sales, inventory).
 Purchasing Tab: Purchasing units and tax details.
 Sales Tab: Sales units and tax details.
 Inventory Tab: General ledger (G/L) accounts, inventory unit type, and costing method.
 Price List Tab: Set pricing and installment options.
4. Creating and Managing Records:
o Customer Master Record:
 Access via Customers/Suppliers > Customers.
 Define customer details (name, tax ID, group, etc.) in each relevant tab.
 Set default payment terms and G/L account information.
 Save the record after all fields are completed.
o Supplier Master Record:
 Access via Customers/Suppliers > Suppliers.
 Input supplier details, similar to customer setup, including tax ID, contact info, and payment
terms.
 Assign the Accounts Payable G/L account.
 Save the record once complete.
o Item Master Record:
 Access via Inventory > Items.
 Define basic item details, including category and class.
 Configure specific tabs for purchasing and sales info, inventory details, and price lists.
 Save the record after finalizing details.
5. Document Handling:
o Basic Document Structure:
 Header: General document information (e.g., dates, customer/supplier).
 Middle (Contents): Specifics of items/services (item codes, quantities, prices).
 Footer: Totals with discounts, taxes, and additional charges.
6. Defining Banks:
o Allows users to link bank accounts to Smartbooks, supporting transactions in the General Ledger.
o Access via Admin > Setup > Banking > Bank Accounts.
o Enter bank details and assign the relevant G/L account for transactions.
o Save to finalize.
Chapter 4: Purchasing Process
 Purchasing Process Overview
o Purpose: Manages procurement of materials or services, ensuring the company has necessary resources.
o Steps: Begins with a purchase order (PO) and includes receiving, returns, invoicing (AP Voucher),
payment, and adjustments.
o Real-Time Tracking: Smartbooks updates inventory and financial status automatically throughout the
process.
 Key Purchasing Documents:
o Purchase Order (PO): Created to request items/services from a supplier, specifying quantity, and price;
affects inventory status but no financial entry.
o Receiving Document: Confirms goods received, adjusts inventory, and posts to accounting if on
perpetual inventory.
o Purchase Return: Documents returned goods for inventory and financial adjustments.
o AP Voucher: Recognizes a supplier's invoice, establishing a liability and adjusting relevant accounts.
o Debit Memo: Used to correct or reverse previous entries or transactions if needed.
o Payment: Finalizes purchase by settling the amount owed to suppliers through the Treasury module.
 Process Overview:
1. Issue Purchase Order ➔ 2. Receive Goods (Receiving Document) ➔ 3. Return Items if Necessary
(Purchase Return) ➔ 4. Record Liability (AP Voucher) ➔ 5. Adjustments if Required (Debit Memo)
➔ 6. Pay Supplier (Payment).
Chapter 5: Sales Process (Revenue Cycle)
 Key Sales Documents:
o Sales Order: Commitment from a customer to purchase; reserves inventory without financial posting.
o Shipment (Delivery Document): Confirms item dispatch; adjusts stock and records goods issue.
o Sales Return: Handles product returns; reduces stock and adjusts accounts.
o AR Invoice: Issued to customer post-delivery, legally binding; adjusts customer receivables and
inventory.
o Credit Memo: Reduces customer’s payable balance, often due to returns or price adjustments.
o Customer Payment: Recorded in Treasury to settle the AR Invoice and update cash or bank accounts.
 Process Flow:
1. Create Sales Order ➔ 2. Deliver Goods (Shipment) ➔ 3. Process Return if Needed (Sales Return) ➔
4. Issue AR Invoice ➔ 5. Credit Adjustment (Credit Memo) ➔ 6. Receive Payment.
6. Inventory Management (Chapter 6)
 Inventory Basics: Smartbooks allows detailed inventory tracking, supporting both goods and services. Each item
has specific data for purchase, sales, and production.
 Warehouses: Defined as storage locations with a unique code and name, essential for tracking inventory
movements.
 Key Inventory Features:
o Batch and Serial Numbers: Track individual items by lot or unique ID, aiding in recall management,
quality control, and compliance.
o Pick and Pack: Facilitates efficient order fulfillment by managing the picking of items and preparing
them for shipment.
o Price Lists and Discounts: Customized for different customer groups; supports flexible pricing
strategies.
 Inventory Transactions:
o Item Receipt: Records goods received into inventory.
o Item Issuance: Reflects items taken out of inventory (e.g., for sales or production).
o Item Transfer: Manages movement between warehouses.

Key Terms for Exam:

 ERP: Integrates various business functions into a single system.
 Cloud Computing: Services accessed via the internet, reducing need for in-house infrastructure.
 Private, Public, Hybrid Clouds: Different deployment models based on ownership and control.
 Master Data: Fundamental data (e.g., customers, suppliers, items) essential for creating documents.
 PO: Document for purchasing goods or services, affecting inventory but not financials initially.
 AP Voucher: Financial document that records liabilities owed to suppliers.
 AR Invoice: Sales document charging customers post-delivery, adjusting accounts receivable.
 Credit Memo: Adjusts AR balance, often due to returns.
 Batch/Serial Numbers: Tracks individual items for quality control.
 Pick and Pack: Prepares goods for shipment.