EZware ERP Solutions Guide

ERP Solutions and Financial Accounting
Menu:
 Overview of EZware
 EZware Products Modules / ERP Solutions
 Manufacturing / Assembly Cycle
 Construction / Contracting Cycle
 Sales and Receipts Cycle
 Purchase and Payments Cycle
 Inventory / Material Management
 Asset / Fleet Management
 Financial Accounting and Reporting cycle
 Financial Reports
EZware Technologies L.L.C.

Production Assembly Cycle
1
Process
Plan /
Design
2 Job
Order /
BoM
3
Job Order
Execution
4
Warehou
sing
5
Maintenan
ce / QC
6
Sales /
Dispatch
To Buyer
Manufacturing / Production Process
 Production Management  Process Plan
 Production Management  Bill of
Material , Job Order Creation
 Material Management  Job Order
Execute
 Good Procure /Issue (Job Order)
 Production Management  Daily
Production Entry
 Production Management  Warehousing
 Production Management  QC Approval
/ Maintenance
 Issue / Dispatch – Covered in Sales
Cycle

The FIRST Stage in the Production Assembly Cycle : Process Plan Creation :
 Once customer sends order, Process Plan is created in the system with the
specifications required to produce the item
 The design details are included in this stage in the system
 Next, the components required for the Job Order are identified in the Job Order,
which include:
 Materials required
 Labor / resources required
 Sub-contract works, if any required
NOTE - For all items required, the estimated quantity and cost are also identified
1
Process
Plan /
Design

The SECOND Stage in the Production Assembly Cycle : BoM, Job Order creation :
 Once customer sends order, Job Order and Bill of Material (BoM) are created in
the system with the specifications required to produce the item
 The design details are included in the Process Plan are included in the Job
Order, which include:
 Materials required
 Labor / resources required
 Sub-contract works, if any required
NOTE - For all items required, the estimated quantity and cost are also identified
2 Job
Order /
BoM

The THIRD Stage in the Production Assembly Cycle : Job Order Execution :
 Once the BoM and Job Order are raised, stock availability is checked
 For items not available, inquiries are sent to suppliers and purchase orders are
raised based on quotations received
 Once items are received from suppliers, the system is updated for Inventory
receipts, Purchase Invoice
 Material requisitions are raised against Job Order, BoM
 Stock transfer notes are issued against Material requisitions for issue of
materials from store to the assembly / production site
 Production / assembly progress for the Job order is tracked in the system
through Job Order status - Work in progress reports, Daily Production Reports
3
Job Order
Execution

Production Assembly Cycle4
Warehousing
The FOURTH Stage in the Production Assembly Cycle : Warehousing:
 Once the items are assembled as per Job Order / BoM, the finished goods are
dispatched from site to the warehouse for storage
 Inventory records are updated for finished goods received
 Job Order is closed for items finished
 Cost Variance reports for work completed are updated against the Job Order

The FIFTH Stage in the Production Assembly Cycle : QC / Maintenance
 Once the items are stored in the warehouse, and inventory records are updated
for the finished goods received:
 Quality Check process for measuring in the compliance as per set standard of
fitness and quality of the product
 Inventory issue records are updated for QC
 Preventive maintenance is done periodically for machinery and equipment used
in the production / assembly
5
Maintenan
ce / QC

1
Process
Plan /
Design

2 Job
Order /
BoM

3
Job Order
Execution

4
Warehou
sing
5
Maintenan
ce / QC

Sales Management and Receipts Cycle
Sales Management and Receipts Process
 Sales and Distribution Inquiry from
Customer
 Sales and Distribution Quotation to
Customer
 Sales and Distribution Sales Order
 Sales and Distribution Dispatch Advise
 Sales and Distribution Sales Invoice –
SO
 Financial Accounting  Receipt
Voucher (RV)

1
Inquiry
from
Customer
The FIRST Stage in the Sales Cycle : begins with Inquiry from the Customer :
 Inquiry Details are recorded in the system
 Inquiry number is assigned by the system for future reference and use

2
Quotation
to
Customer
The SECOND Stage in the Sales Cycle : is our response to the Inquiry from the Customer :
 Quotation is raised in the system in response to the Inquiry
 Inquiry number assigned earlier from the system assigned, is attached to the Quotation

3
Sales Order
For
Customer
The THIRD Stage in the Sales Cycle : is Sales Order
 A sales order is created once the client approves our quote or gives approval to proceed with sales
 Stores can issue goods only against a sales order; (which implies Goods Issue Voucher is always
issued against a sales order)
 Sales Order requires approval by proper authority before Sales are made

4 & 5
Goods
Issue /
Sales
Invoice
The FOURTH Stage in the Sales Cycle : Goods Issue / Dispatch and Sales invoice
 Once the Sales Order (SO) is approved, items to be issued are reserved against Dispatch Advice
 Sales Order and Dispatch / delivery documents are prepared for dispatch of the finished goods to customer
 Sales Invoice is prepared, with the SO & Dispatch advice references, and issued to the customer
 Inventory issue records are updated for goods issued
 Accounting entries are also recorded in Sales invoice screen which initiates the Sales contract

Financial Accounting - Receipts Cycle
The SIXTH Stage in the Sales Cycle is: Financial Accounting  Receipt Voucher (RV)
 Receipt Voucher is raised in the system for payments received form customer
 Inquiry number assigned earlier from the system assigned, is attached to the Quotation
 Accounting entries are passed for payment received from customers on sale of goods
6
Receipt
Voucher

Purchase Management and Payments Cycle
Purchase Management and Payments Process
 Purchase Management Inquiry to Supplier
 Purchase Management Quotation from Supplier
 Purchase Management Comparison
 Purchase Management Purchase Order
 Material Management  Goods Received (Inward)
 Material Management  Goods Received (Quality
Check)
 Material Management  Goods Received – Note
(GRN)
 Purchase Management Purchase Invoice – GRN
 Financial Accounting  Payment Voucher (PV)

1 & 2
Materials
Request /
Inquiry
This Stage in the Purchase Cycle : begins with Inquiry to the Supplier
 Materials Request is raised by Stores / departments which require materials
 For items not in stock, Inquiry is raised and sent to the Supplier
 Inquiry number is assigned by the system for future reference and use

3 & 4
Quotations /
Comparison
This Stage in the Purchase Cycle : begins with Quotations received from Suppliers
 Quotations received are recorded in the system, with reference to Inquiry raised
 Multiple quotations received against the same Inquiry number, are then compared in the system
 The Comparison screen gives the option to select the best offer from all suppliers, it
suggests the best quote on pricing by highlighting it in “Green”. The user can make a final
decision by manually selecting the best quote as per other constraints if any

5
Purchase
Order Issue
This Stage in the Purchase Cycle : begins Purchase Order raised on Suppliers
 A Purchase order is made for a particular supplier once the prices and terms of payment
are approved. A Purchase Order is an acknowledgement to the supplier that his Quotation
has been selected for supply of goods to the firm
 Accounting entries are also recorded in this screen which initiates the Purchase contract

6
Goods
Received
/ QC
This Stage in the Purchase Cycle : begins with Goods received from Suppliers, QC
 Suppliers issue goods against the Purchase order made on suppliers
 On receipts of goods, QC or Quality check is conducted at Stores before receiving goods
 Stock accounting entries are also recorded by raising a GRN for goods received

6
Goods
Received
/ QC
This Stage in the Purchase Cycle is: Financial Accounting  Payment Voucher (PV)
 After GRN is raised for goods received, Purchase Invoice is raised in the system on the
supplier
 Accounting entries are recorded in Purchase invoice screen which initiates the Purchase
contract
 Accounting entries are passed for payment made to suppliers for purchase of goods
Financial Accounting - Payments Cycle

Inventory / Material Management Process
Inventory Process / Material Management
 Material management is where all the products/stocks of the organization are managed. Once the materials are properly filled-in,
this module would be automatically updated based on transactions in Sales and Purchase module. Goods Issue and Goods
Receipt (Inward) options in Material management is the base of sales and purchase and this would directly affect the stock. In
addition we also have option to manage stocks, make stock adjustments and stock transfers between two locations. To
summarize, Material Management is a simple and straight forward functionality that deals with stocks of the company
 Note: The section on Goods Receipt (Inward) and Goods Issue were discussed in the respective Purchase and Sales
cycles are not discussed in here
 Material Management Item Master –Defines Materials Type
 Unit Master- Defines basic unit of measurement
 Location Master- Physical location of storage

Construction Contracting Cycle
1
Project &
Org. WBS
2 Sub
Contractor
Set up
3
Tender /
Bidding
4
Estimation
5
Project
Set up &
Progress
6 Project
Receipts &
Payments
Construction / Contracting Process
 Project and Organization Work Break
down Structure (WBS)
 Sub-Contractor Set-up
 Project Comprehensive Evaluation
 Project Tender / Bidding
 Project Cost and Time Estimation
 Project Set up
 Project Status Progress Monitoring
 Work Supervision
 Quality Control
 Payment Certificates
 Project Receipts – Covered in Sales
Cycle – RV (Receipts voucher)
 Project Payments – Covered in
Purchase Cycle – PV (Payment
voucher)

The FIRST Stage in the Construction / Contracting Cycle :
 Creation of the Organization WBS (O-WBS) – is set up of the standard “type” of resources required for
various stages of the P-WBS
 Creation of the Project work breakdown structure (P-WBS) – breakdown of the stages in any construction
process in terms of smallest activity such as: the work package, tasks, sub-tasks, activity, work package
 BOTH WBS are defined one-time in System Masters for all stages of the construction / contracting process
 Under the smallest process of Work Package, resources, materials, etc required at that stage are attached :
 Materials required – type of items, quantity, cost, etc
 Labor / resources required – type of resources, quantity, cost, etc
 Assets Required – machinery, etc
 Sub-contractors required
NOTE - For all above WBS components, the estimated quantity and estimated cost are also defined
1
Project &
Org WBS Construction Contracting Cycle

1
Project &
Org WBS Construction Contracting Cycle

The SECOND Stage in the Construction / Contracting Cycle :
 Similar to setting up the PBS and OBS, the next stage is to set up the Sub-contractor Master in the system
 Under Sub-contractor Master we define the following:
 Name of sub-contractor, details about the sub-contractor e.g. Contact details, currency, payment terms, etc
 This is similar to defining our Suppliers in the Supplier Master
 For the sub-contractors set up, sub-contractor agreements are also set up in the Master. These agreements are linked to the
Construction Projects set-up in the system, at a later stage
 Each work tem to be sub-contracted, estimates can be defined by entering the line items as per BoQ OR by selecting the PBS
package created in the PBS master (materials, assets, etc for the selected PBS fill in automatically) For each item of the
selected PBS, quantity, rate, etc can be edited, new items can be added / existing ones deleted
EZware Technologies L.L.C.2 Sub
Contractor
Set up

3
Tender /
Bidding
The THIRD Stage in the Construction / Contracting Cycle :
 Once the WBS are set-up and the Sub-contractors are defined in the System, the next stage is entering the Tender
details in the system as per the BoQ (Bill of Quantities)
 The system also has the facility to import the BoQ externally from an excel file
 For each Tender the System generates a unique “Tender Code” which can be selected in the Estimation for that Tender

EZware Technologies L.L.C.4
Estimation
The FOURTH Stage in the Construction / Contracting Cycle :
 After Tender entry, for Estimation of the Tender, select the Tender number against which the Estimation needs to be
created. BoQ line items for the selected Tender number, fill in automatically in the Estimation screen. For each BoQ line
item estimates can be done by:
 Entering the line items for each BoQ OR by
 Selecting the PBS package created in the PBS master (materials, assets, etc for the selected PBS fill in
automatically) For each item of the selected PBS, quantity, rate, etc can be edited, new materials, etc can be
added / existing ones deleted
NOTE - Changes made to the PBS package selected in Estimation does not change the PBS defined in the Master
 Rates in Estimation can be defined from Quotation / PO / PBS. Line items for which rates are not fixed can be marked in
the BoQ column – the system “marks” these in “pink” and also sets up alerts which are displayed on logging in
 Once estimates for each line item of the BoQ are filled in, the system shows the TOTAL estimated cost in the footer of
the Estimation screen with separate estimate totals in the footer for:
 Materials
 Labor / manpower
 Direct costs
 Indirect expenses, overheads
 For each Estimation, the System generates a unique “Estimation code” which can be attached in the Project budget
screen to the relevant construction project

Estimation

The FIFTH Stage in the Construction / Contracting Cycle :
 Once estimation is done for the Tender, next Project is created in the system to which the estimation can be attached
 Setting up the project in the Project set up screen, is similar to entering details in the Supplier/Customer Master
 The system lets user define the “Project Number” for each project set up in the system. Once the project is set up, it
needs to be marked “Active”
 Other details such as: relevant dates for the project, value of the project and approved value are also filled in.
 Once the Project is set up, then the Budget / estimate for this project is created in the Project Budget screen by:
 Selecting the Project number created
 Selecting the Estimation number created – line items for the selected Estimation number, fill in automatically
 For each item of the selected Estimation, quantity, rate, etc can be edited, new materials, etc can be added / existing
ones deleted
 Once the Budget is set up for the Project Number, the system automatically marks that Project “Budgeted” – this can
be seen in the Project set up screen
5
Project
Set up &
Progress

5
Project
Set up &
Progress

The FIFTH Stage in the Construction / Contracting Cycle :
 Once the Project has been set up, marked “Active” and other details such as: relevant dates for the project, value of the
project and approved value are filled in and the Budget is set up for the Project Number – this Project is now ready in the
system to be managed and be tracked for its progress in terms of cost and time
 To track progress in terms of cost, Payment Certificates are created in the system in the “Client Payment Certificate”
or CPC Screen wherein by selecting the “project number” the details of the project are displayed. The progress of the
project is then entered in terms of “%” or “value” and the system calculates the value of the work done till date
 For the CPC screen, Ledger accounts (defined in the Chart of Accounts) are also selected and “defaulted” for use in the
CPC screen.
 Advances, retention amount, etc are also calculated in the CPC by the system based on details entered in Project set up
 The CPC for each Project, is the Invoice sent to the client – receipts on this are recorded in the Receipts Voucher screen
(covered in Financial Accounting)
 The Project Schedule Management screen facilitates tracking progress of the project in terms of time, wherein by
the selecting the Project Budget code, the line items for the selected Budget code, fill in automatically. Against each line
item following details: start and end date, total number of days, predecessor / successor activities, slack , etc can be
defined to track the progress. In the Project Daily progress screen - progress in terms of “%” for each line item can be
monitored with the start and end dates for that item / activity.
5
Project
Set up &
Progress

Fleet Management Cycle
1
Create
Fleet
Details
2 Create
Maintenance
Schedules
3
Create Job
Card
4 Execute /
Close Job
Card
6 Receipts /
Payments
Fleet / Asset Management Process
 Creation of Fleet Details in System
 Record Fleet Details
 Set up Depreciation Schedule over lifespan
 Set up Maintenance Schedule for each Asset / Fleet
 Define Maintenance Criteria
 Set up Frequency of Maintenance
 Create Job Card for each Fleet’s Maintenance
Schedule
 Attached Materials, Labor required
 Identify Sub-contractor work required (if any)
 Quality Check if required
 Execute Job Card(s)
 Receipts – Covered in Sales Cycle – RV (Receipts
voucher)
 Payments – Covered in Purchase Cycle – PV
(Payment voucher)

The FIRST Stage in the Fleet Management Cycle :
Fleet Management is relevant to businesses / companies which :
 Use assets commercially e.g. operators of School Buses, Cranes / Heavy equipment, etc rented out by
the business
 To manage / track their assets used internally within multiple departments / projects
 Fleet management involves FIRST creating details of each type of Fleet in the System - Fleet Pool and related
Masters. Details recorded include:
 Fleet Manufacturer, Origin, Registration details, Insurance details for the fleet / asset
 Fleet Status (Active / Inactive), Location of Fleet (Workshop Garage, etc)
 Recording details of each Asset/ fleet in the Fleet Pool Menu of the system for e.g. Registration data of
the Fleet, physical details (weight, length, etc), Model, Engine and other Identification details
 Other Specifications e.g. Tyre serial number, number of tyres, Kilometer details related to the tyres, etc
NOTE - These details help define the Fleet Maintenance required in subsequent stages of fleet
management through the system
1
Create
Fleet
Details

1
Create
Fleet
Details

The SECOND Stage in the Fleet Management Cycle :
 Once the Fleet Details have been recorded in the System Fleet Pool, the next process is to define the Maintenance
schedule required for each fleet. This includes setting up the Maintenance criteria in the Maintenance Menus and
includes defining details of:
 Type of Maintenance (Preventive / corrective)
 Maintenance checklist (Oil change, brakes, repair, etc)
 For each type of maintenance, the system allows defining the items required, cost involved by clicking “F9”
against the line item in the Details grid
EZware Technologies L.L.C.2 Create
Maintenance
Schedules

The SECOND Stage in the Fleet Management Cycle :
 Further details defined in the Maintenance schedule for each fleet, include frequency of maintenance (date wise /
mileage wise).
 Based on Maintenance criteria filled in , the Maintenance Schedule screen “fills in” automatically (on clicking the “Fill
Schedule” option
 The system allows defining the items required, cost involved by clicking “F9” against the line item in the grid
(NOTE – Material, other items required for maintenance are defined in Materials Management – Item Masters)
EZware Technologies L.L.C.2 Create
Maintenance
Schedules

The THIRD Stage in the Fleet Management Cycle :
 After setting up the Maintenance criteria, the Service Request (SR) for each fleet / asset is created
 In the SR screen, on selecting customer and other details the grid “fills in” automatically with relevant fleet details
 For each line item in the grid, the system allows review of material, labor and cost breakdown. Further material items,
etc can be added / existing ones edited at this stage
 Sub-contracting any line item in the grid is also possible, (on clicking F9 ), and sub-contractor / third party repairs, can
be added and cost defined for the line item
Create Job
Card

The THIRD Stage in the Fleet Management Cycle :
 For each SR, the next step is to create Job Card. In the Job card, on selecting the (SR), details “fill in” automatically
from the SR.
 For each line item in the grid, the system allows drill down review of material, labor, third party repairs, etc by clicking
the respective “F6…F9” buttons shown at the bottom of the screen
 Total cost with sub-totals for costs of material, labor are also available at the bottom of the Job Card screen
 The system also generates Purchase Order (PO) automatically for each Job card created
Create Job
Card

The FOURTH Stage in the Fleet Management Cycle :
 Executing the Job Card created
 This involves recording the Invoices from sub-contractors, monitoring the materials issued for the job card (via the
Inventory Module – Goods Issued screen)
 For Materials required, the system auto-creates Material Issue from Inventory / Material request in case item is not
available in stock – this is done through the Inventory Management module in the system
 Processing Payments for work executed on the Job card - covered in Financial Accounting module
 Closing the Job Card with QC Check (if required)
EZware Technologies L.L.C.4 Execute
Job Card

Financial Accounting and Reporting Cycle
Financial Accounting and Reporting Process
 Chart of Accounts
 Masters
 Payment Voucher / Receipt Voucher
 Debit Note / Credit Note
 Debit Application / Credit Application
 PDC Deposit, Payables and receivables
 Journal Vouchers
 Bank Reconciliation
 Closing JV
 Books - Bank, Cash, Sales, Sales Return, Purchase,
Purchase Return, Journal, Debit Note, Credit Note
 Ledgers – General Ledger, sub-ledgers for Masters
 Financial Statements - Trial Balance, Profit And Loss,
Schedule, Balance Sheet Reports

1 & 2
CoA /
Masters
This is the foundation Stage in the Financial Accounting and Reporting Cycle : begins with creation of :
 Creation of Chart of Accounts (CoA) – defines the Groups: B/S (Assets, Liabilities), P&L (Revenue, Expenses).
The CoA also categorizes, links the debit / credit ledger accounts below the Groups
 Groups are identified in “blue” and Ledger accounts are identified in “red” in the CoA
 Creation of Masters – these are sub-ledgers for the ledgers accounts in the CoA for Banks, Suppliers, Customers,
Employees, Currencies, etc
 The CoA ledger accounts with the Masters feed the accounting transactions into transaction reports, final accounts

Ledger
Opening
Records
This Stage in the Financial Accounting and Reporting Cycle : consists of entering opening ledger balances for
the CoA ledger accounts, in the Opening Balances screen in the system for:
 Ledger Opening Balances - for opening Balances of Miscellaneous accounts that are left post updating the rest
of the below Opening Balances like Employee, Supplier, Customer, LC, Bank/Cash etc.
 Employee Opening Balance - for Opening Balances of Staff related accounts.
 Supplier Opening Balance - for Opening Balances of various Suppliers where accounts are payable. This is the
opening balance of ledger wherein the company enters its bills and pays money it owes.
 Supplier PDC Opening Balance - for Opening Balances of Post-Dated Cheques (PDC) issued to various
suppliers in return for supplies received and credit period enjoyed therein.
 Customer Opening Balance - for Opening Balances of various Customers where accounts are receivable. This
is the opening balance of ledger wherein the company enters money received
 Customer PDC Opening Balance - for Opening Balances of Post-Dated Cheques (PDC) received from various
customers in return for items supplied and credit period granted wherein.
 Bank / Cash Opening Balance – for Opening Balances of various Bank accounts maintained by the organization
for using banking tools and services for transacting business on a daily basis

Transaction
Documents
/ Vouchers
This Stage in the Financial Accounting, Reporting Cycle : consists of transaction documents / vouchers namely:
 Payment voucher / Receipt Voucher – Refer slides 25 and 28
 Debit Note / Credit Note – these vouchers record sales returns from customers / purchase returns from suppliers
 Debit Application Credit Application – in cases of credit sales and credit purchases – this screen helps to offset
the Dr/Cr balances of any entity having both Dr/Cr balances e.g. a customer returning goods or having paid in
advance, would have a credit balance which can be offset with his debit balance for other sales made to him
 PDC Deposit - Payables and receivables – this screen helps to record PDC cheques received from customers or
PDC cheques issued to suppliers / other entities
 Journal Voucher – for recording transactions which are not covered in above screens e.g. to rectify any transaction
entry in case of errors

Bank
Reconciliati
on
This Stage in the Financial Accounting, Reporting Cycle : consists of bank reconciliation:
A company's cash balance at bank and its cash balance according to its accounting records usually do not match the
bank records. This is due to the fact that, at any particular date, Cheques may be outstanding; deposits may be in transit
to the bank, errors may have occurred etc. Therefore companies have to carry out bank reconciliation process which
is a statement accounting for the difference between the cash balance in company's cash account and the cash
balance according to its bank statement. Following are the transactions which would be included:
 NSF Cheques -These are the cheques deposited by the company in bank account but the bank is unable to receive
payment on those cheques due to insufficient funds in the payer's account
 Deposits in Transit
 Cheques Outstanding
 Service Charges
 Interest Income

Ledger
Closing
Records
This Stage in the Financial Accounting and Reporting Cycle : consists of closing ledger balances for
the CoA ledger accounts, in the system for:
 Revenue, Income and Gain Accounts
 Expense and Loss Accounts
 Drawings or Withdrawals Accounts
 Income Summary Account

Ledger
Reports /
Financial
Statements
This Stage in the Financial Accounting and Reporting Cycle : consists of closing ledger balances for
the CoA ledger accounts, in the system for:
 Books - Bank, Cash, Sales, Sales Return, Purchase, Purchase Return, Journal, Debit Note, Credit Note
 Ledgers – General Ledger, sub-ledgers for Masters
 Financial Statements - Trial Balance, Profit And Loss, Schedule, Balance Sheet Reports

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