What is the Odoo ERP System?
Odoo ERP System is a set of different modules, where each module will have its characteristics and functions, but all the modules will integrate and share a common database. Each module represents each business function such as Sales, Purchase, Inventory, Accounts, Manufacturing, Project Management, CRM, HR, Payroll, etc. An ERP system means all these modules will be seamlessly integrated and will function as a single application. Thus companies can get all their business activities controlled through a single software. This will help companies to bring more control, more security, automation, minimal data entry, auto-processing and many more.
Let us take the example of :
Order to Cash Cycle
An Enquiry comes from Customers – This will get added to leads in CRM Modules. The Sales Department schedules a call with the customer, contacts the customer, negotiates, sends a quotation, follow-ups, assigns the task to another salesperson, and finally sends the Purchase Order. These activities are captured in CRM Modules.
The quotation is converted into a Sales Order in the Sales Module. Advance is received from the customer and captured in the Receivable module. The delivery order is created in the Inventory Module. Picking slips and packing slips are created in inventory modules. Invoice is created in the Sales Module. The Balance amount received from the customer is entered in the Receivable Module. The invoice is posted in the General Ledger. Advance is posted in the General Ledger. Delivery Order is posted into the General Ledger. The balance payment received is posted in the General Ledger.
If you check General Ledger, we can see sales revenue, inventory value, cost of goods sold, and receivables outstanding.
The above cycle has functions from modules such as CRM, Sales, Receivables, Inventory and Accounts modules. All integrations and posting happened automatically and as per the business flow defined in the Odoo ERP system, which is the process of business defined in the business SOP. Additional optional modules may also play their role if the organisation’s business process has such things as advanced pricing, logistics, shipments, sales incentives, etc.
Procure to Pay
Similar to Order to Cash, where customer order is converted into revenue, purchase flow can also be entered and tracked in the Odoo ERP system. Purchase, Inventory, Quality Control, Payable, General Ledger, Shipment, and Logistics modules are affected.
Likewise, using the Odoo ERP system, you can manage different business functions. Such as Manufacturing Process, Project Management, Material Management, Maintenance, Field Service, and so on…
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