VC ERP Consulting
Topics: Basics of ERP, SAP and Accounting
Presented by
Shivam Thakar
Flow of Presentation
Introduction of ERP
Why ERP in Business?
Introduction of SAP Business One
Features and Functionalities of SAP Business One
Process of Procurement
Process of Sales
Process of Manufacturing
Introduction of GST
Introduction of TDS
Introduction of TCS
Basics of Chart of Accounts
What is ERP?
• ERP stands for Enterprise Resource Planning
• To manage and integrate the important parts of businesses
• Focus on one business area , but work together by using same data to
meet company’s needs
• Finance, Accounting, Human Resources, Sales, Procurement, Logistic
and Supply chain are components of ERP
• Combines all data across departments into a single database that can
be accessed by all employees
Why ERP used in Business?
• For expanding business, reduce costs and improve operations
• Improves accuracy and productivity
• Time saving
• Help in planning , budget , forecast decisions
• Quick access for employees
• All branches of organisation at one database
What is SAP Business one?
• SAP Business One is ERP software
• Designed for small and medium sized enterprise
• Owned by German company SAP SE
• Aims to automate key business function like finance, human resources and
operations
• Available in Microsoft Windows based product
• Now available in mobile and tablets which are iOS and Android supported
Features of SAP Business One:
• Financial
• Sales
• Services
• Purchase
• Stock
• Manufacturing
Functionalities of SAP Business One:
Administration
Banking
CRM
Financial
Opportunities
Sales
Purchase
Business Partners
Inventory
Resources
MRP ( Material Resource Planning )
Production
Project Management
Service
Human Resources
Reports
Process of Procurement
Identify Goods
or Service
Record for
Audit
Explore and
select Vendors
Pay for Goods
or Service
Submit
Purchase
Requisition
Receive Order
Create
Purchase
order
Process of Sales
Approach the client
Discover clients need
Provide a solution
Close the sale
Complete the sale and follow up
Process of Manufacturing
Raw
Material
Disposal/
Production
Process
Recycle
Manufacturing
Delivery
Packaging
What is GST?
• GST stands for Goods and Service Tax
• GST Act passed in parliament on 29th march 2017 and implemented on 1st July ,
2017
• It replaced many indirect taxes like Value Added Tax (VAT) , Excise duty , service
tax etc.
• It is levied on supply of Goods and Services
• It is multi-stage, destination-based tax that is levied on every value addition
Objective of GST
• ‘One Nation, One Tax’
• Subsume majority of indirect taxes
• Eliminate the cascading effect of taxes (set off tax credits)
• To increase the taxpayer base
• Online easy procedures
• Improved logistic and distribution system(e-way bill, reduce documentation
process)
Components of GST
• CGST (Central Goods and Service Tax)
• SGST (State Goods and Service Tax)
• IGST (Integrated Goods and Service Tax)
• UTGST (Union Territory Goods and Service Tax)
What is TDS?
• Stands for Tax Deducted at Source
• 1% , 2% , 5% , 10% is the rate of TDS and this is implemented as per income tax
section 192 and 194
• One kind of advance tax
• TAN (Tax deduction Account Number) is used in any TDS related issues
• Only online payment
Form used in Return
• Form 24Q :- Salary
• Form 26Q :- Non Salary
• Form 26QB :- TDS on Property
• Form 27Q :-Other than the salary to Non Resident
TDS Certificate
• Form 16 :- Salary
• Form 16A :- Non Salary
• Form 16B :- TDS on property
How TDS process happened?
Step 5
Step 4
Step 3
Step 2
Step 1
• Payer Deducts
tax from
payment
• Payer deposit
tax to
Government
• Payer files
return of TDS
• Payer issues
TDS Certificate
to Payee
• Payee claims
refund of TDS
in his ITR
What is TCS?
• Stand for Tax Collected at Sources
• Collected by an E-commerce operator for provide goods and services
on the online platform
• Charged as percentage on the net taxable supplies
• It dealt under section 52 of the CGST Act
• Who own, operate and manage e-commerce platforms are liable to
collect TCS
• 0.5 % CGST and 0.5% SGST or 1% IGST is rate of TCS
• IGST and CGST will payable to the central Government
• SGST will payable to state government
• It should be deposited to the government within 10 days in end of
month
• Hotel accommodation , clubs, transportation of passengers and
housekeeping are exceptions
Chart of Accounts
• All the financial accounts in the general ledger
• Helps reader to locate specific accounts
• Revenue , Expenditure , Equity, Assets and Liabilities are the Chart of
Accounts
• Balance sheet and Income-Expense account of any company
Chart of Accounts
Revenue
Expenditure
Equity
Assets
Liabilities
Chart of Accounting
Revenue
• Sales
• Other
Incomes
Expenditure
•
•
•
•
•
•
Advertising
Bank charge
Depreciation
Rent
Insurance
Operating
expenses
Assets
•
•
•
•
•
•
Fixed assets
Goodwill
Patents
Cash
Bank
Accounts
receivables
• Stock
Liabilities
• Accounts
payable
• Bank loan
• Income tax
payable
Equity
• Capital
• Drawings
• Reserve and
surplus
How to prepare Profit and Loss statement?
• Collect information about Revenue and expenses
• List sales
• List of Cost of Goods Sold (Purchase + Opening stock - closing Stock Purchase Return)
• Gross Profit = Total Revenue - COGS
• List your all expenses
• EBITDA= Gross Profit - All expenses
• EBIT= EBITDA - Depreciation – Amortization
• EBT= EBIT – Interest
• Net Profit = EBT – Tax
How to prepare Balance sheet?
Step 1: Pick the balance sheet date
Step 2: List all of your assets
Step 3: Add up all of your assets
Step 4: Determine current liabilities
Step 5: Calculate long-term liabilities
Step 6: Add up Liabilities
Step 7: Calculate Owner’s Equity
Step 8: Add up liabilities and owner’s equity
Thank You