Professional Documents
Culture Documents
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:
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 QTY Purchase Price (in Rs.) Initial Order Quantity Minimum Quantity Maximum Quantity
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. Create products in your product master.
C. Create a new supplier by name: Trolley Supplier Pvt. Ltd.
D. Create BoM as per given data.
E. Procure the quantities as mentioned in column Qty. Take taxes with defaults as per Indian
GAAP. (Supplier as mentioned above)
F. Receive the material in your main stock location
G. Accept the invoice from supplier.
H. Gen invoice from supplier, validate and PAY.
I. Generate manufacturing order for 500 three wheeled Trolleys. (Finished product)
J. Produce these 500 units.
K. After this production, produce another batch of 125 units.
L. Sell 350 of these trolleys to any customer available in your system.
M. Collect the payment from your customer as per list price. (Through bank)
N. Customer finds 10 trolleys defective and sends these back. Accept in your stock and replace
with another 10 units.
O. 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 :
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)
Stock
Part No Description Unit 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)