Most Powerful Open Source ERP

Introduction to Accounting with ERP5

Introducing of ERP5 and the ERP5 accounting module
  • Last Update:2015-10-01
  • Version:001
  • Language:en
Logo Nexedi
  1. Who is Nexedi?
  2. Sample Implementations
  3. What is ERP5?
  4. ERP5 Accounting
  5. ERP5 Reporting
  6. Implementation Process
  7. ERP5 Key Advantages

1. Who is Nexedi?

Logo and Map Nexedi

1. Who is Nexedi?

Key Facts

  • Founded 2001
  • Creator and maintainer of ERP5
  • 100% Open Source and Web-based
  • Focus on Business Implementations (~ 30 running) and Research
  • Self-financed, no venture capital
  • Offices in Paris, Lille, Munich, Tokyo, Shanghai
  • 35 staff, including 30 developers

1. Who is Nexedi?

Complete Open-Source Service Provider

  • Business ERP5 | Business Software
  • Data Wendelin | Big Data Analysis
  • Storage NEO | Distributed Transactional Database
  • Security R6stnet | Resilient Cloud Network
  • Hosting SlapOS | Scalable Cloud Hosting

2. Sample Implementations

Logo ERP5

2. Sample Implementations

Management of West African Monetary System

System screenshot
  • 60 regulatory workflows
  • 7.000 stock points
  • 150.000 transactions per day
  • 300 users
  • 8 countries
  • Bank Security Compliant

2. Sample Implementations

Online Sales Management

Sanef Website Screenshot
Logo Sanef
  • ERP5 Backend for e-Commerce
  • 120.000 new customers per year
  • 30.000 invoices per hour
  • 7.000.000 customers
  • 250 users
  • Four Months Implementation

2. Sample Implementations

Global Accounting of NGO

Sanef Website Screenshot
Logo Sanef
  • Financial management & accounting
  • 24 countries/legislations
  • 50 accountants
  • Account and budget consolidation
  • Yearly auditing by Ernst&Young

3. What Is ERP5?

ERP5 Screenshot

3. What Is ERP5?

Generic ERP Framework

ERP5 Accounts View

ERP5 is based on 5 generic concepts hence the name ERP5. These five concepts are used to build the core architecture and all extensions making ERP5 a very flexible system for modelling complex business processes.

3. What Is ERP5?

Values Company Practice

Building ERP5 is like working with 5 generic lego stones instead of prebuilt parts, that are only usable in a certain way: ERP5 allows to build company-specific solutions around existing processes instead of forcing a company to change and adopt a software's "best practice".

3. What Is ERP5?

Built via Business Templates

ERP5 is split into a core and business templates (called bt5), which cover a wide functional scope and can be installed as needed. Enabling accounting for example requires adding the bt5s "erp5_accounting" and one containing the account scheme to use ("erp5_accounting_l10n_de_skr04").

3. What Is ERP5?

100% Open Source and Web Based

ERP5 is published under GLP licence. It can be downloaded and used for free, has active implementations running for over 10 years and constantly evolves through test based development. Nexedi provides services (along with training) to customize ERP5 and extend bt5s (like erp5_accounting) to specific company requirements (reports, controlling, third-party interfaces).

4. ERP5 Accounting

ERP5 Screenshot

4. ERP5 Accounting

Tree-Based Accounting Plans

Accounting Plan
  • Accounting Plans implemented as trees
  • Country schemes like SKR04 in GAP tree
  • GAP: Basis for fiscal balances & reports
  • Organizational structures in Group tree
  • Group: Basis for consolidation
  • Analytical Accounting through additional custom trees
  • Base principle: Transactions are tagged to tree nodes

4. ERP5 Accounting

ERP5 accounts

ERP5 Accounts Scheme

4. ERP5 Accounting

ERP5 accounts (cont.)

ERP5 Accounts View
  • Self-contained "meta" accounts
  • Country and legislation independent
  • Associated to at least one GAP account
  • Associated to categories (eg. asset/payable)
  • Multinational Accounting
  • Fiscal reports via GAP tree membership

4. ERP5 Accounting

Accounting Transactions

ERP5 Accounts Scheme

4. ERP5 Accounting

Accounting Transactions (cont.)

ERP5 Accounts View
  • Multipart: connect transaction-lines with objects (projects, organisations, ...)
  • Object-based analysis and reporting
  • Symmetric = multi-party accounting (eg. headquarter & subsidiary)
  • Internal transactions only entered once
  • Party-based analysis and reporting

4. ERP5 Accounting

Accounting Transactions Types

  1. Purchase Invoice Transaction
  2. Accounting Transaction (miscellaneous)
  3. Payment Transaction
  4. Sale Invoice Transaction
  5. Internal Invoice Transaction (multi-organizational)
  6. Balance Transactions (auto-created on period close)

4. ERP5 Accounting

Accounting Transaction Lines

ERP5 Accounts Scheme

4. ERP5 Accounting

Accounting Transaction Lines (cont.)

ERP5 Accounts View
  • Transactions contain multiple lines
  • Lines ~ Single booking
  • Lines connected to multiple accounts via "base categories"
  • General accounting done by source & destination base categories
  • Analytical accounting can be based on any category (division, product line...)

4. ERP5 Accounting

Accounting Periods

ERP5 Accounts View
  • Main periods = official periods
  • Secondary periods = fragmentation
  • Examples: Quarterly, Monthly

4. ERP5 Accounting

Accounting Workflow

ERP5 Accounts View
  • Workflow = Transaction "LifeCycle"
  • Planning can be workflow and/or account based
  • Draft = created locally
  • Planned = planned transaction
  • Confirmed = confirmed to be made
  • Journalise = confirm to accounting
  • Post = lock transaction
  • Closed = sealed accounting period

5. ERP5 Reporting

ERP5 Accounts Scheme

5. ERP5 Reporting

Reporting Layers

  • Standard
  • Actual, transaction-based reporting
  • Generic, not based on legislation
  • Analytical controlling
  • Basis for custom reports
  • Static, does not change
  • Custom
  • Client specific reports
  • Custom controlling schemes
  • Necessary exports/reports per legislation
  • Client specific consolidation
  • Adaptable depending on need and regulatory changes

5. ERP5 Reporting

Query-Based Reporting

ERP5 Accounts View
  • Item balances for all group tree items
  • All balances are query based
  • Configurable (transaction period, workflow/simulation state)
  • Easily extendable and adaptable
  • Generic setup for custom reporting

5. ERP5 Reporting

Standard Reports

  • Account Statement | All transactions on a given account
  • Trial Balance | Start, delta, end balance for all accounts
  • Journal | Accounting lines grouped by transactions
  • General Ledger | Accounting transactions grouped by accounts
  • Third Party Ledger | Ledger for third parties only
  • Third Parties | Groups transactions by third party, not account

5. ERP5 Reporting

Standard Reports (cont.)

  • Internal Reconciliation | Compare internal transactions between two entities
  • Aggregation Report | Balance sheet, income statement and all appendices
  • Accounting line report | Exports accounting line to spreadsheet
  • Online view | View Reports within ERP5
  • Age Balance| Open invoice balances sorted by lateness
  • Bank Reconcliation | Match accounting with bank statement information

6. Implementation Process

ERP5 Accounting Implementation Process

6. Implementation Process

Agile Implementation Approach

  1. Specification | Workshop to define functional scope
  2. Prototype | Development of Prototype
  3. Validation | Workshop to bring prototype to production level
  4. Development | Development of final version
  5. Simulation | Pilotphase
  6. Live | Production
  7. Reiterate across all modules

6. Implementation Process

Prevention Testing

  • Convention Tests | Source Code Quality
  • Unit Testing | Functional, Interface, Api Quality
  • Functional Testing | Interfaces, Fast Input Quality
  • Performance Testing | Simulate Complex User Cases
  • Up to 50% of overall development effort

6. Implementation Process

Knowledge Transfer

  • Nexedi Lead
  • User training and documentation
  • Developer training
  • Development, deployment & testing guidelines
  • Optional external support
  • Client Lead

6. Implementation Process

Accounting Prototype Discussion Points

  • Simulate interface to external systems (CRM...)
  • Tree definitions
  • Application security and access right definition
  • Import of legacy data if required
  • Create draft transactions based on imported data
  • Necessary regulatory reports
  • Scope of custom reporting & controlling
  • User & Developer Documentation required
  • Need for external validation of prototype

7. ERP5 Key Advantages

  1. ERP5 builds around existing processes instead of forcing changes
  2. Symmetric bookings entered once for multiple parties
  3. Symmetric Transactions keep multiple parties synchronized
  4. Imports automatically generate underlying transactions
  5. Standard Reports (P&L, Balance Statements,...)
  6. Full history and tracability of all entered data

Contact

Logo ERP5
Nexedi SA
270, Bd Clemenceau
F-59700 Marcq-en-Barœul

Tel: +33 62 90 24 425
Mail: sven.franck@nexedi.com
Web: www.nexedi.com