Bir ERP Budget

You can watch a video of this presentation from the link below
http://www.biryazilim.com/video/BudgetDemo.mp4

LORD OF BUDGETS BİR YAZILIM LTD STI
2
WHILE STARTING
In the scriptures writes that, "The King Sees In His Dream That Seven
Lean Cows Eat Seven Fat Cows" king tells those under his command
to express this dream, but they cannot express it, as a solution, they
cast off as a mixed dream.
A person working in the king's entourage tells him that a person he
has known before can interpret this dream and that person is called.
He describes the dream as "Seven Years of Abundance, Seven Years
of Famine in Your Country". As a Budget Proposal, he tells the king
to restrict the consumption of grain and stockpiling by calculating
the famine years in the years of abundance.
The king accepts this phrase without interpreting it as it is, events
develop as described, budget realization is 100% correct. While
neighboring countries beg at the king's door, he leads his people in
abundance in this crisis. You can imagine the position of the person
who is called special talented person, Minister of Treasury and
Finance.
What is meant to be explained is that in order for future system
proposals to be realized, appropriate administrative administrators,
employees and technology should be together, otherwise it is futile if
you have the most stalked straw software.
According to rumors, an Attempt of Transition from Agriculture to
Industrial Revolution was conducted in China during the MAO
period, agriculture was neglected, the result was disappointing,
and approximately 20 million Chinese citizens died of starvation.
The same country (different heads) has now become the World's
Number One Production Center. It is likely that this country (and its
counterparts in its vicinity) will soon, with its production centers
that are increasingly firing humans and robotizing, and efforts to
add artificial intelligence to this, will leave 50% of the world's
current workforce hungry and unemployed.
The danger is huge, and there are global epidemics that instantly
spread even into space. We will try to explain to you the budget
technology, which is one of the remedies to the proposal of
"Stretch Your Feet According to Your Duvet" in order not to be
hungry and uncovered.
The business subject to the document is a virtual enterprise that
manufactures in the field of Medical Health Devices and sells
mainly in the domestic and mainly foreign market. Niagara Medical
Devices Industry and Trade Inc.
Any information used in the document does not belong to any
institution or business, it has been prepared virtually for
presentation purposes, if any, the similarities are coincidental.
Figure-1 An ERP System Budget and Strategic Planning Module Operation Steps Automation Table

3
THE RULES OF THE GAME
An ERP Budget Preparation Module performs the Budget
Preparation process with two different technologies.
The First Method is the technology that directly uses an ERP
Software and pulls the necessary infrastructure information
from inside the system. As business realization values are
formed, they are automatically tracked in budget reports by
the internal transfer method.
The second method is the technology that uses an ERP Budget
Management Module and pulls the necessary infrastructure
information from outside the system with special tools. As
business realization values are formed, these are transferred to
the module with special tools and monitored in budget reports.
Production and Accounting parties approach budget
technology differently. One is worried about the difficulty of
controlling everything with what he sees and lives in
production and is concerned about conveying it correctly, the
other is comfortable with the acceptance that the documents
containing the amount and amount delivered to him from the
production explain everything correctly.
ERP Software includes whatever information comes to mind on
behalf of cost calculation while managing production with its
own tools, as long as it is used correctly.
The accounting system is based on the concepts of
Document and Term. If these huge data transmitted by the
ERP software are processed with the relevant commercial
documents in the accounting database, they are valuable for
them.
We should also say that it is possible to prepare Cost
Account and Budget with Pure ERP Software Data. This
presentation is only intended to explain the technique of
using the ERP Software Module.
So here we will not do Accounting Receipt Preparation
operations associated with Accounting Plan Codes of 620 or
621, we showed that presentation with other documents and
video on our site.
This type of cost calculation and budgeting function is also an
important tool to prevent the Risk of Selling at Loss.
Budget Preparation can sometimes be very difficult due to
the fluctuations in the economic indicators of the sector and
country in which this technique is used.
Exchange rates, which have tripled in the past years, have
been a nightmare for many Business Budget Managers.
Figure-2 An ERP System Budget and Strategic Planning Module Process Flow Table

4
SUPPORTING PLAYERS
Uniform Chart of Accounts
TDHP is a financial coding system that resolves events quickly as long as
there is correct data. While following the Amount and Money
movements in the business, it provides comfort to only save the money
part. The budget usually deals with the 7 Major Group Code of Account.
All other parts of the business deal with both the quantity and the
amount part and they are not so comfortable because they have to give
the account of the money to the accounting department.
Cost Center
They are places where only production money flows inside and outside
the enterprise. Automobile Expense of 1.5 Million for the CEO is not the
cost of the product produced by the factory, but a type of expense that
reduces the profitability of the business.
Casting Workshop Supervisor Ramiz and his staff ate 300 TL in Old
Cheese Toast and Beverages is Production Cost, and 1000 TL Business
Meeting Dinner prepared for the CEO is not Production Cost. We are
not communists or anything, don't be misunderstood.
Types of Costs
Indirect Materials, Insurances of Production Related
Persons and Assets, Depreciation, Taxes and Premiums,
Dues, Energy Expenses, and the like are Cost Types of
Cost Centers.
Finished and Semi-finished Product Recipes
Creating a Product Recipe suitable for the ERP structure
may not be possible or healthy for the department master
and supervisor of the years who know all the parts and
components belonging to that product as its name.
This issue is a feature that ruins many ERP Projects and
getting consultancy from outside will be beneficial in terms
of rescuing large ERP investments.
Figure-3 An ERP System Uniform Chart of Accounts and Cost Center / Type Matching Table

5
MAIN ROLE PLAYERS
Sales Budget
Although there are enormous differences in its preparation for the
relevant sector, it is the first vehicle to be used to set off. In general,
there is an almost unerring hit rate in the Alcohol and Cigarette market.
If the Sales Budget Price Information is requested, it is calculated by the
system by entering the Beginning or Period Initial Sales Prices for All
Months and deriving the whole year prices with Price Increase Models
(PPI, CPI, Other).
Purchasing Budget
An ERP system automatically generates Purchase and Production
Budget information based on Sales Budget and Finished Product Recipe
values.
Purchase Budget Price Information is calculated by the system by
entering the Beginning or Period Initial Purchase Prices for All Months
and deriving the whole year prices with Price Increase Models.
Production Budget
It is prepared automatically by an ERP System using the Amount
and Period information given in the Sales Budget and revised if
necessary. The Direct Materials and Semi-Finished Product
Consumption amounts required for the Finished Product Cost
are calculated with this budget.
Operating Expense Budget
Workers and Employee Wages, Depreciation, Outside Benefits
and Services, R&D expenses, Marketing, Sales and Distribution
Expenses, General Management Expenses (7 Main Group
Accounts) are the basic inputs of this budget.
Each Account Code is matched to a Cost Center or Cost Type.
The expense uploaded to the account is uploaded to the cost
center, sometimes directly, sometimes by distribution.
Figure-4 An ERP System Sales Budget (Quantity) Report

6
EXPENSE LOADING AND EXPENSE DISTRIBUTION
Loading Direct Expenses
Employee and Officer Wages, Depreciation, Indirect Materials,
and some of the other expenses are loaded directly to the
Cost Centers and some by the Distribution Method. This
loading is done with TDHP Codes and Cost Center and Cost
Type Matching method.
There is no restriction in the system regarding the Chart of
Accounts Model, the desired TDHP Model can be used with
the desired separation marks (or not).
For codes 720.010.01, 720.010.02 and 720.010.03 batch
720.010 at once. ?? can be made in the form of an
introduction.
Common Expense Loading Keys
All Indirect Expenses are loaded on Semi-Finished Products and
Products produced with this Distribution Key System. It is possible to
choose Proportional or Mathematics Distribution for the distribution
process.
The Material, Direct and Indirect Expenses formed in the previous
stages are dressed on the semi-finished product, this semi-finished
product is in another semi-finished product in the next stage and is
also clothed there.
This Expense Allocation action is automatically performed by the
system, with no restrictions in relation to your Production Phase
Number.
Figure-5 An ERP System Cost Location Direct Expense Loading System
Figure-6 An ERP System Common Expense Distribution Key System

7
THE GAME BEGINS
MRP-1 Mission
The MRP-1 Tool is a tool that usually works at night like a bat and
tears the personnel about the reports it produces in the morning,
but if your infrastructure is healthy, it gives correct results.
It prepares Purchase and Production Budget information with its
own logic, taking into account your Sales Budget, Semi-Finished
and Finished Product Recipe, Production Policy and some other
parameters (since our topic is budget, the system dominates the
whole business in general use).
In the case of institutional structures, there is no other calculation
tool or mortal that can do the work of this tool manually. The
working time of this system is usually 20-30 minutes, depending on
your business volume. with 5-7 hours in large enterprises.
When the system is run for Budget Preparation, it does not consider
the constraints on Production Times and Resource Capacities, it
accepts that these are sufficient.
Therefore, MRP-1 accepts that the Sales Budget Amounts introduced
to the system can be produced with the current capacity in that
period.
It also acknowledges that your Raw Material Supply Policy will
provide the required material for the required production in the
relevant Production Period.
These explanations are valid only if the system is used for Budget
Preparation. It checks all these issues in the real ERP application and
provides the necessary warning reports.
Figure-7 An ERP System MRP-1 Calculation Tool

8
SEMI-PRODUCTS AND PRODUCTS RECIPE
Stock Information Card
All Raw Materials, Semi-Finished Goods and Products of your
business are transferred into an ERP system with Automatic Data
Transfer (Data Update when necessary) Tools.
This transfer contains the information required for the Budget
Preparation process; other material information details are not
transferred.
Stock Prescription Card
It is the information that the MRP-1 Tool refers to while using the
Sales Budget figures for the Products.
It is used to calculate all Raw Material, Semi-finished and Finished
Product requirement figures. Also, the details that are not required
for the Budget Preparation process may not be entered.
Figure-8 An ERP Stock Information Card
Figure-9 An ERP MRP-1 Semi-Finished and Finished Product Requirement Report
Figure-10 An ERP MRP-1 Raw Material Requirement Report

9
Creating Purchase Budget Price Information
MRP-1 Account Results provided us with Purchase and Production
(Semi-finished and Finished) production Quantity and Date
information.
We will use this information for automatic Purchase and Production
Budget preparation.
Figure-11 An ERP Raw Material Purchase Budget Report
Figure-12 An ERP Semi-Finished and Finished Good Manufacturing Budget Report

10
MRP-1 Mission
Purchase Budget Price Information is calculated by the system by
entering the Beginning or Period Initial Purchase Prices for All
Months and deriving the whole year prices with Price Increase
Models.
Here, we will show the period purchase prices to be entered with the
Price Increase Factor.
Figure-13 Purchase Period Initial Price Table and Price Increase Option
Figure-14 Assigning Purchase Budget Price Information

11
Sales Budget Price Assignment
If the Sales Budget Price Information is requested, it is calculated by
the system by entering the Beginning or Period Initial Sales Prices for
All Months and deriving the whole year prices with Price Increase
Models (PPI, CPI, Other).
Here, we will show how period sales prices are entered with the Price
Increase Factor.
Figure-15 Beginning Period Sales Price Value Table
Figure-16 Sales Price Increase Factor Table (Domestic)

12
Figure-18 Sales Volume Report
Figure-19 Sales Price Report

13
PREPARATION STEPS OF INCOME AND EXPENSE STATEMENT
Expense Distribution and Loading Process
We distribute the Direct Loading and Indirect Loading information
and the values included in the Activity Expense Budget to the Cost
Centers.
Figure-20 An ERP Cost Locations Expense Distribution Table

14
Production Budget Unit Cost Calculator
Using the Phase Cost System, first, the Semi-finished Product Costs,
Materials and Operating Expenses, and the weighted Average
method are calculated.
Then, Product Cost calculations are made.
This process is the part that makes the most important calculation of
the system and the values obtained here for a sound budget are of
great importance in terms of Achieving Price Competition.
Figure-21 Semi-Finished and Finished Process Cost Values Report

15
Calculating Cost of Goods Sold
SMM Values to be used in Income Expense Table are calculated and
saved by using Sales and Production Budget Cost Values.
Some calculations are made for the purpose of recording to be used
in the Income Statement or Cash Flow Statement as well as the
reporting function.
Figure-22 Cost of Goods Sold Report Annual View
Figure-22 Cost of Goods Sold Report Monthly View
Figure-23 Sales Turnover and Realization Report (Realization Value not available yet)

16
Preparing Income Statement
The transactions we have done up to this step have provided us with
most of the data required to prepare Income Statement.
While obtaining the income and expense report, it is required to
enter some other Account Plan Code (602, 646 etc.) required for
Group 6.
This information has not been entered in this presentation.
Figure-24 Income Statement Annual View
Figure-25 Income and Expense Table Monthly View

17
PREPARING CASH FLOW STATEMENT
Preparation of Sales Collection Entry Information
The system calculates the Sales Collection Amount entry dates with
Monthly Maturity Policies information.
We previously entered 30/60/90 or different Day Payment and
Maturity Percentage values.
Figure-26 Sales Collection Maturity Acceptance
Figure-26 Sales Collection Period Report

18
Preparation of Activity Expense and Maturity Information
Like our collections, our payments will be made with a certain
Maturity Day acceptance.
During this process, the deductible VAT Account transaction is also
made. Since the enterprise is an export-weighted company, the
value of VAT incurred will be quite high.
Figure-27 Activity Expense Payment Term Information Report and Deductible VAT

19
Purchase Expenses Payment Term Preparation
Since the Production Budget gives us Raw Material Purchase Dates,
we can use this information to obtain Purchase Payment Maturity
information.
Figure-28 Purchase Payment Maturity Information Report

20
Exchange Differences Account
It is calculated with the Estimated Exchange Rate Values table
entered using Sales Budget figures.
Figure-29 EUR Estimated Exchange Rates Table
Figure-30 Sales Collection Exchange Differences Report

21
Transferred VAT Account
The information is obtained using the information recorded with the
accounts we made before and the Activity Expense Budget.
Due to being an export company, there is an incurred VAT asset.
Figure-31 Transferring VAT Information Report

22
Creating a Cash Flow Statement
In the preparation of this table, all Budget Values are used in
addition to the account records we have made in the past.
As in the Income Statement, some values will need to be entered
manually in the EXCEL Table (entered values are saved, not re-
entered).
Values such as Safe Deposit and Bank Account, Investment Planning
must also be entered.
Figure-32 Cash Flow Information Report

23
REALIZATION VALUES INTRODUCTION
An accounting of all calculations will be made as the period
progresses. To see how accurate or inaccurate it is.
The necessary tools are available in the system to automatically
transfer the actual values in your business to the fields reserved for
this information.
This process is not required for an ERP users.
Figure-33 Sales Budget Realization Information Introduction

24
Realization Reports
Figure-33 Sales Turnover Difference Realization Report
Figure-34 Sales Turnover Percent Realization Report
Figure-35 Sales Turnover Actual Value Report (January-February-March Real)

25
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