Background As an ERP consultant you have to provide the POC( Proof of Concept) to your client. The main processes that this client is interested in are:
Procurement
Bill of Material
Manufacturing
Financial Reporting
Automatic Reordering
Stock movements
Sales and distribution
Supplier and customer payments
For the purpose of this POC client has provided you with the data of one of their products. This is three wheeled trolley for movement of material. Schematic diagram of this product is here:
Name of the Product: Trolley, 3 wheeled Product is manufactured ONLY and never procured. Selling price is Rs. 12,000 per unit. To manufacture 1 (ONE) trolley, following BoM is required: Part No
Description
Unit
112-001 111-006 110-001 105-001 111-001 102-108 100-001 100-002 100-003 100-004 100-005
Plywood,12mm,2400x1200 Varnish, Semi Gloss Side Piece MS Flat 80x8 Galvanising Wheel, with tyre, 100mm MS Bolt, M10x70, Galv M10, washer, Galv M10, Nut, Galv MS Bolt, M10x30, Galv M10 Square Nut
each liters each meter kg ea e ach each each each each each
QTY
Purchase Pr Price (in Rs.)
1 0.05 2 0.75 0.009 3 3 6 9 3 3
Description of the various columns are as follows:
Part No. : Identification part number
110 73 35.5 28 18000 250 10 2 12.5 13.5 11
Initial Order Qu Q uantity
Minimum Quantity
1000 50 2000 750 20 3000 3000 6000 9000 3000 3000
800 40 1600 600 16 2400 2400 4800 7200 2400 2400
Maximum Quantity
1200 60 2400 900 24 3600 3600 7200 10800 3600 3600
Unit: Unit of measurement of product
Qty: Quantity required to manufacture each Trolley (Finished product)
Purchase price: Purchase price in INR PER UNIT without tax
Initial order Quantity: Initial order that you will place on supplier
Minimum quantity: Minimum quantity that you have to maintain in your stock.(For automatic reorder calculation) Maximum quantity: Your stock should not exceed this quantity (for automatic reorder calculation)
Process A. MOST IMPORTANT: BEFORE YOU BEGIN, GET A PRINT (PDF) OF YOUR PROFIT AND LOSS ACCOUNT AND BALANCE SHEET. THIS CAN BE DONE FROM “ACCOUNTING MODULE” AND “PDF REPORTS” SUB MENU.
B. C. D. E. F. G. H. I. J. K. L. M. N. O.
Create products in your product master. Create a new supplier by name: Trolley Supplier Pvt. Ltd. Create BoM as per given data. Procure the quantities as mentioned in column Qty. Take taxes with defaults as per Indian GAAP. (Supplier as mentioned above) Receive the material in your main stock location Accept the invoice from supplier. Gen invoice from supplier, validate and PAY. Generate manufacturing order for 500 three wheeled Trolleys. (Finished product) Produce these 500 units. After this production, produce another batch of 125 units. Sell 350 of these trolleys to any customer available in your system. Collect the payment from your customer as per list price. (Through bank) Customer finds 10 trolleys defective and sends these back. Accept in your stock and replace with another 10 units. Process scheduler and generate automatic reorder.
Answer following questions on the basis of processes and transactions mentioned above 1. Take a print of your P&L and B/S now. Compare the previous pdf report and this report. Calculate profit amnually and justify the results shown. (10 Marks)
P&L now :
Balance sheet now :
P&L before :
Balance Sheet Before :
Current Income=Rs 8564500 Current Expenses=Rs 3597300 Net Profit now= Rs. 4967200 Income before=Rs 4364500 Expense before= Rs, 2053650 Net Profit before=2310850 Hence actual profit=2656350=Net profit before -net profit now
2. What is invoiced order value ( including tax) you placed on supplier for raw material mentioned in point D above? (2 marks)
Your answer here: 1734482.18
3. What is the stock position of all the raw material after step N? (5 marks)
Part No
Description
Unit
112-001 111-006 110-001 105-001 111-001 102-108 100-001 100-002 100-003 100-004 100-005
Plywood,12mm,2400x1200 Varnish, Semi Gloss Side Piece MS Flat 80x8 Galvanising Wheel, with tyre, 100mm MS Bolt, M10x70, Galv M10, washer, Galv M10, Nut, Galv MS Bolt, M10x30, Galv M10 Square Nut
each liters each meter kg each each each each each each
Stock Position
4. Reproduce ONLY LAST THREE stock moves including raw material and finished goods for all the transactions. Your report should have following columns: (10 marks)
5. After Step N, what was the order quantity generated for Varnish? (3 marks)
42 litres was the quantity generated for N+1 th order
