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Account
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ERP software - Account module.
1. Valuation ERP Valuation logic is as follows: There are many kinds of rate on item master: 1. Closing balance rate 2. Pure purchase rate 3. Cost Rate (or landed cost ) 4. Weighted Average Rate (WAR) 5. WIP Rate
Closing balance rate: It is necessary to enter the ‘closing stock’ along with ‘closing balance rate’; as on date when ERP goes live. E.g. as on 31 March 06 (or any date when physical stock is taken of a given location), xyz item closing balance is 25 nos. and cl. Bal rate is Rs. 23.00. From 1 April onwards, will capture new rate (if any), by PV / GIN, etc. and compute the other rate as explained below:
For Raw material, bought out items, consumables (these items are purchased from the market. Normally there is no BOM for these kind of items, in other words these are child items.
Landed cost calculation (cost rate).
ERP stores the pure purchase rate in the item master. In goods receipt note (GRN), VAT, Excise, Cess etc., is also captured.
While preparing the GRN, additional amount is also entered, such as freight, insurance, other charges, etc.
ERP will compute two kinds of rate as follows:
Weighted Average Rate(WAR) is computed and stored separately by applying WAR logic, which takes care of different quantities, purchased at different rates. For computing WAR rate if item is new the landed cost itself will be WAR rate, there after as and when the PV is made, the rate will change.
1. For manufactured items, for these items BOM is created. 2. Factory made items, semi-finished goods (SFG), sub-assemblies, WIP stock. 3. Finished Goods (FG), final product.
ERP will compute the WIP rate by exploding the BOM adding all the child items. WIP rate is stored on the item master. Arrive at total material cost.
Overhead is added to the material cost to compute the WIP rate. Valuation of all item (including SFG and FG) is computed by using WIP rate.
Method: 1. Click on Inventory -> report -> item ledger with value 2. This will generate WAR rate for all raw material, bought-out items, etc. 3. Click on Account -> transactions -> WIP Rate generation. 4. Click on WIP Rate generation button. 5. This will update WIP Rate (as per BOM) on item master for all father items, in ‘WAR rate’ field. 6. Click on Inventory -> report -> stock statement value. 7. This will give WIP valuation. TDS – Tax Deducted at SourceERP captures information required for deducting tax (TDS) at the time of paying to the creditor.
TDS provision is made in the following
1. GIN (Labour bill received from third party). 2. Expense Voucher (Service Provider Bill) – Service bill received from service provider. 3. Direct Payment Voucher (bank or cash).
Please open TDS accounts as required, under sub-group ‘TDS payable’ (under group = current liabilities). e.g. TDSon Contractor. e.g. TDSon processing (Third party). e.g. TDSon Interest. e.g. TDSon Salary, etc.
There are two scenarios:
Booking the bill using GINor Expense Voucher
Sub-contractor (Third Party).
Master When material is given out for job working, processing, assembly, etc., to another company, and when payment is made, it is necessary to deduct tax and pay the same to central government.
Please enter Third party master data in ‘Address Master’. Please Tick in the TDSapplicable tick box, and enter TDS % to be deducted.
Transaction Prepare GINor Prepare Expense Voucher
ERP will compute TDSamount based on the TDS % (from master) and show separately. The same is posted automatically in the creditor ledger and General ledger account.
Direct payment against bill (by bank or cash)
Provision is made in ERP to capture the TDSinformation at the time of making the payment.
In this case, the bill is paid directly debiting the expense account (and crediting bank or cash). Please enter the TDS amount in the field provided. ERP will post the same in GL accordingly.
VAT/ Sales Tax
ERP captures VATand Sales Taxinformation automatically from various transactions.
Purchase Tax
Master
Please create respective GL Accounts in account master. e.g. VAT 4 % Purchase e.g. VAT 12.5 % Purchase, etc.
Transaction Purchase Tax information. This is captured in the PV (Purchase Voucher) and GIN(Goods Inward Note). Prepare PV for Non-Inventory item, e.g. Stationery.
Report In Accounts menu, select General Ledger (report) Select period – from date and to date Select Single GL Account, Select required account e.g. VAT……., , Click OK button.
The ledger will appear. User can save the same as Excel sheet, save and print.
Sales Tax information.
Master
Please create respective GL Accounts in account master. e.g. Main Group = Sales, Group = Sales Accounts, Sub Group = Duties & Ta s Sales e.g. VAT 4 % Sales e.g. VAT 12.5 % Sales,
This is captured in the Sales CCI (Challan-cum-Invoice).
Report In Accounts menu, select General Ledger (report) Select period – from date and to date The ledger will appear. User can save the same as Excel sheet, save and print. 5. Service Tax
ERP captures Service Taxinformation as follows. There are two scenarios:
1. Booking the service provider bill.
When the service bill is received user will enter the same in ERP using the Expense Voucher.
1. Master: Please enter service provider name, address, etc., in Vendor Master. Select Vendor type as service provider Enter Expense account head in GL account master. e.g. Transport Expenses.
2. Transaction: Enter Expense Voucher. This will credit the supplier (service provider) And debit the expense account.
3. At the time of payment please prepare Payment voucher (Bank or Cash). Respective service provider will be debited.
Capture Service Tax information.
2. Direct payment
Sometime the service provider bill is not booked (no creditor account is posted). Directly payment is made debiting the expense account. . |
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