Professional Documents
Culture Documents
ADempiere|ERP
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Ground Rule
Learn to Unlearn
The secret to learning new things is to be willing to unlearn--even if your behaviors previously brought success
BY: MARCIA CONNER February 27, 2006
To know Accounting
What accounting is Accounting Basic ADempiere account
Why Business and Accounting? ERP is just not only a software, ERP is both software and business strategies ERP is for Resource planning, management control and operational control
There are 4 components of an ERP System:
1. 2. 3. 4. Hardware and Operation Systems ERP software Users Business Processes
Information
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Tons of information?
How to manage these tons of info? Risk? How much we exactly earn and pay? How to share benefit/risk fairly?
Tons of information?
How to manage these tons of info? Risk? How much we exactly earn and pay? How to share benefit/risk fairly?
Types of Business
Sole proprietorship Partnership Cooperation
Company, Public, listed
By Ownership
Trading
Retail, Wholesales
By Operation
Manufacturing Service
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Manufacturing
Service
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Business Cycle
Investment by owners Loans from creditors
Vendors
Land, buildings and equipment
Monetary resources(Capital)
Business earnings
Pay other operating exp.
Pay Employee
Customers
Produce Goods and service Monetary resources from sale of goods and services
Pay Loan
Pay Tax
Other stakeholders
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Business Cycle
Investment by owners Loans from creditors
Vendors
Land, buildings and equipment
Monetary resources(Capital)
Business earnings
Pay other operating exp.
Pay Employee
Customers
Other stakeholders
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Business Cycle
Investment by owners Loans from creditors
Vendors
Sale Cycle
Land, buildings and equipment materials and supplies Pay Employee
Monetary resources(Capital)
Business earnings
Pay other operating exp.
Customers
Produce Goods and service Monetary resources from sale of goods and services
Pay Loan
Pay Tax
Other stakeholders
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Business Cycle
Investment by owners Loans from creditors
Vendors
Land, buildings and equipment
Monetary resources(Capital)
Business earnings
Pay other operating exp.
Pay Employee
Customers
Produce Goods and service Monetary resources from sale of goods and services
Business Cycle
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To know Accounting
What accounting is Accounting Basic
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What is Accounting?
What is Accounting?
Definition
Action
Record
Debit Credit
Classify
Summarize
Interpret
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Accounting Type
1. 2. 3. 4. 5. Asset () Liability () Equity () Revenue ( ) Expense ()
Nature of Account
Debit Credit Credit Credit Debit
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Accounting Type
1. Asset () 2. Liability () 3. Equity ()
4. Revenue ( ) 5. Expense ()
Note: Cost is Expense
Balance Sheet ()
Income Statement ()
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Debit Asset
Credit =
=
Liability + Equity
+
Asset + Expense
+
=
=
= + + = + -
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= + +
Balance Sheet Income Statement
Balance Sheet ()
4. Revenue ( ) 5. Expense ()
Income Statement ()
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Chart of Account is the Core of ERP System. It is necessary to consult with the Accountant and come out with the Chart of Account for your own company.
See sample chart of Account from C:\Adempiere\data\import\AccountingUS.xls Once ready, convert to CSV file which can be uploaded into ADempiere
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Chart of Account
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Chart of Account
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Product type Type: Item It is existing product e.g. Plum tree Type: Service It is Expense e.g. Plum tree
Document type
Shipment MM Receipt
Shipment MM Receipt
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1. 2. 3. 4.
Balance Sheets Change in Equity Statement Income Statements Statement of Cash flows
A. B. C. D. E. F.
To know Accounting
What accounting is Accounting Basic
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Store/Shipment
SO
Finance
Accounting
Internal DO
Accounting Software
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2
Stock card
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Internal DO
Invoice/DO
Internal DO
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Dr Cost of Good Sold Cr Inventory Dr AC Receivable Cr Sale
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Invoice/DO
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Billing
Billing
Receipt
Customers
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Receipt
Dr Bank Cr AC Receivable
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HEAD ACHE!
Store/Shipment
ERP
Dr Cost Cr Inventory
Finance
ERP Invoice
Dr AR Cr Sale
Accounting
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Stock card
DO
ERP
Internal DO Invoice/DO Billing Receipt
ERP
Customers
Billing
Dr Bank Cr AR
ERP
Receipt
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Problem Solved!
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ERP Implementation
BIZ
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