SOFTWARE REQUIREMENTS SPECIFICATION

(SRS)

iDempiere
(Enterprise Resource Planning Software)

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A. INTRODUCTION

1. Purpose

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 2. Product Scope and Functions

B. iDempiere (ERP) SOFTWARE: AN OVERVIEW

1. iDempiere Modules & Business Functions

2. iDempiere Organisation Structure

3. Master Data and Business Processes

C. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

D. SALES ORDER MANAGEMENT

1. Quote to Invoice

2. Customer Return

E. PURCHASE AND MATERIAL (INVENTORY) MANAGMENT

1. Requisition to Invoice

2. Vendor Return

3. Material (Inventory) Management

3.1) Inventory Movement

3.2) Physical Inventory

F. ACCOUNT AND FINANCE MANAGMENT

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A. INTRODUCTION

This Software Requirements Specification (SRS) document introduces to the

functions of “Enterprise Resource Planning Software” (ERP), known as
“iDempiere” - which is an open source enterprise application software.

i. PURPOSE

The purpose of this document is to showcase the major functionalities of the

application software - “iDempiere” and how the business processes can be
mapped and integrated to it, particularly in the areas of Customer Relationship
Management (CRM), Sales Order Management, Purchase and Inventory
Management and Accounts and Finance Management. The document addresses
major business processes in iDempiere.

ii. PRODUCT SCOPE & FUNCTIONS

The scope of this SRS Document includes business domain areas like Customer
Relationship Management (CRM), Sales Order Management, Purchase and
Inventory Management and Accounts and Finance Management. On top of it,
Organization Structure and Master (Prerequisite) Data with respect to the ERP
Software are in the purview of this document. Subsequent sections of the
document showcases (flow charts) the synchronization between
processes/functions of aforementioned business areas with that of ERP Software
- “iDempiere”.

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B. iDempiere (ERP) SOFTWARE: AN OVERVIEW

i. iDempiere Modules & Business Functions

iDempiere is an open source ERP Software and it addresses major business

functions / Modules, viz., Customer Relationship Management (CRM), Sales
Order Management, Purchase and Inventory Management and Account and
Finance Management. Business Processes like “Requisition to Invoice” and
“Quote to Cash”along with structured master data - shall fulfill an
organizations business cycle efficiently. CRM features like creation and
recording of “Lead”, “Opportunities”, “Activities” etc., can be mobilized.
Inventory can be managed externally (inbound and outbound shipment) and
internally (Stock Move) - whereas stock reconciliation can be performed
while carrying out physical inventory count. iDempiere has a sound
accounting architecture and is capable of generating financial statements.

ii. iDempiere Organisation Structure

iDempiere Organisation structure can be mapped with a company structure.

iDempiere organisation structure consists of Client, Organisation,
Warehouse and Locators. The highest entity in iDempiere is “Client” -
which is a legal entity and can be defined as a Company. An “Organisation”
can be a Division,Plant/Production Unit etc. A Warehouse can be a
place where one receives or dispatches materials (Raw Materials or Finished
Goods). There can be one or more warehouses under an organisation.
A Locator is within a warehouse where the materials are actually
located and there can be multiple locators under warehouse.

Following chart depicts the Organisation Structure of iDempiere:

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Chart 1. Organisation Structure in iDempiere
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iii. Master Data and Business Processes

Before one starts executing business transactions, its a prerequisite to

maintain master data. With iDempiere application - one can define and
maintain master data such as Product, Vendor, Customer, Bank, Price-
list etc.

MASTER DATA BUSINESS PROCESSES

PRODUCT
VENDOR
CUSTOMER
SALES REP.
BANK

PRICE-LIST
PAYMENT TERM

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C. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

Customer Relationship Module (CRM) in iDempiere maps functions and processes

related to creation of Leads and Opportunities, Activities etc. iDempiere also
provides with a Sales Representatives Dashboard to track and analyse the activities of
Sales Pipeline as well as evaluate performance of Sales Representatives. Following
chart depicts the flow of CRM with capturing of lead and ultimately generation
of quotes if the opportunity is won.

Activities

Qualified

Y
Activities

Opportunity

Won

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Chart 2. CRM Flow

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D. SALES ORDER MANAGEMENT

The Sales Order Management Module of iDempiere addresses the Sales Order
Processing, Shipment (Delivery Fulfillment) and Customer Invoice Generation.
iDempiere maps this process under “Quote to Invoice” functionality. Following flow
chart depicts the flow of “Quote to Invoice”.

QUOTE
(BINDING OFFER)

SALES ORDER

SHIPMENT WAREHOUSE / LOCATOR ACCOUNT POSTING

(INVENTORY UPDATION)

CUSTOMER INVOICE

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ACCOUNT POSTING

Chart 3. Quote-to-Invoice Flow

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CUSTOMER RETURN

Customer Return feature in iDempiere, allows business to return material to the

customer and create credit notes. Customer RMA document can be created in
iDempiere for the customer return process.

SALES
ORDER SHIPMENT INVOICE

ACCOUNT
Y N (if uninvoiced) POSTING
MATERIAL
REJECTION

CUSTOMER CUSTOMER CREDIT

RMA RETURN MEMO

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Chart 4. Customer Return

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E. PURCHASE AND MATERIAL (INVENTORY) MANAGMENT

The Purchase and Material Management Module of iDempiere addresses the

entire Procurement and Inventory Management. Following flow chart depicts
the flow of “Requisition to Invoice”.

REQUISITION

PURCHASE ORDER

MATERIAL RECEIPT WAREHOUSE / LOCATOR

(INVENTORY UPDATION)

ACCOUNT POSTING

VENDOR INVOICE PO--MR--INVOICE MATCHING

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Chart 5. Requisition-to-Invoice Flow

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VENDOR RETURN

Vendor Return feature in iDempiere, allows business to return material to the

vendor and create debit notes. Vendor RMA document can be created in iDempiere for
the vendor return process.

PURCHASE MATERIAL
ORDER INVOICE
RECEIPT

ACCOUNT
POSTING
Y MATERIAL N (if uninvoiced)
REJECTION

VENDOR DEBIT
VENDOR RMA RETURN MEMO

Chart 6. Vendor Return

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MATERIAL (INVENTORY) MANAGEMENT

Inventory Movement

The Business Process of moving Inventory from one location to other, with
respect to managing raw materials in a warehouse can be carried out in iDempiere.
Material movement can have the following situations:

Moving materials between locations in different warehouses and

different organisation.
Moving materials between locations in different warehouses but in the
same organisation.
Moving materials between locations in the warehouse.

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Chart 7. Inventory Movement

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Physical Inventory

Physical Inventory feature in iDempiere simplifies the business process of stock

counting and reconciliation - a procedure followed in organizations to ensure that
the physical stock matches the system stock. The differences in inventory can be
recorded in the system and account posting will be carried out as per the
configuration.

Reconciliation

Y
Stock
Matches

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Chart 8. Stock Reconciliation (Physical Inventory) Flow

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G. ACCOUNT AND FINANCE MANAGMENT

The Accounts/Finance Management Module of iDempiere manages the accounting

process through sub-ledgers (Payables & Receivables), general ledger and is capable to
generate financial statements. Focal areas of accounting like Accounts Payable
(Vendor Invoice and Payment), Accounts Receivable (Customer Invoice and Receipt),
Bank Reconciliation, Asset Management etc., can be processed in iDempiere. Few
major account configuration features:

Accounting Schema

The “Accounting Schema” defined in iDempiere takes care of accounting

configuration. Accounting essentials like, Basis of accounting (cash/accrual),
Base Currency, Costing Method etc., shall be configured and defaulted.
Account defaults can be configured for accounting process - for e.g. Vendor
Liability, Customer Receivables, Product (Inventory), Product Revenue etc.

Account Element (Chart of Accounts)

The “Chart of Accounts” (Account Element in iDempiere) can be configured

with classification of accounts - to suit company’s requirement. The Chart of
Accounts can be imported into the system with a program in iDempiere.

Calendar Year and Period

“Calendar & Periods” can be defined in iDempiere to post the transactions in

the fiscal year and month.

Currency

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 “Currency” can be defined in initial client setup - also different
currencies can be define with conversion rates in the iDempiere System.

Reporting

iDempiere features Financial Reports like Trial Balance, P&L Statement and
Balance Sheet.

Bank Reconciliation

iDempiere has the feature to reconcile bank statement with the sub-ledger
(Purchase and Sales transactions Posting).

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 The Following Chart represents Accounting Flow :

CLIENT

Chart of Accounting
Account(Account
Elements) Schema Currency

Used to define
default account

Default Account

Business Partner
Accounts (Vendor,
Customer) Product Account Bank Account

Transactions (Accounting Entries)

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 ACCOUNT POSTING
GL Journal (Manual)

Financial Reports
(Trial Balance, P&L,
Balance Sheet)

Chart 9. Accounting Flow

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