Click on the links below for details of each concept:

Unique Stock Identification System

ContracERP follows a system of assigning unique tracking numbers that track each consignment. The stock position, expenses, sales, etc. are tracked using these tracking numbers. Each item in stock can be identified with the corresponding purchase contract number, the position line number of the item in the contract, the installment or delivery schedule number and the shipment number. These are called identification tags. When an item is cleared to a store from a vessel, a unique identification number is attached to it in addition to the fore stated identification tags. ContracERP uses an identification system with “Tracking Numbers” made up of tags in the following order: Contract number / Position or Line number / Receipt or Delivery Installment number / Shipment number / Unique Identification number.

For instance, the Tracking Number 1003/1/2/1/1 stands for:

  • Purchase Contract Number 1003
  • First Commodity in that contract (ContracERP supports multiple commodities within the same contract)
  • Second installment schedule of that item (ContracERP supports several installments of the same commodity, thereby supporting multiple forward deliveries)
  • First shipment (ContracERP supports multiple shipments of an installment, thereby supporting even part shipments)
  • First batch to be cleared to store, thus becoming an item in Stock (ContracERP supports multiple clearing through customs and to multiple warehouses

In addition to the above, ContracERP can track stock based on the lot number allocated at the time of clearing the goods to the warehouse. ContracERP can also attach a stock identification number usually referred to as the Rotation or Warrant Number. Generally, the Lot and Rotation / Warrant Numbers are issued by the person in charge of the warehouse. Hence, it would be easier for the warehouse personnel to physically locate a stock item using these numbers rather than a ContracERP generated tracking number.

ContracERP users to trace an item up to the contract and thereby to the supplier use the unique tracking number allocated by ContracERP. In short, the ContracERP generated Tracking Numbers provide the ability to trace any item all the way back to the contract and supplier or buyer.

ContracERP users can locate an item using the Tracking Number, the Lot Number or the Rotation / Warrant Number. In addition, users can locate an item by selecting from a list of related parameters like the seller, the shipper, the vessel, the container number, the Bill of Lading number, etc.

Monitoring Shipping & Logistics Expences

Shipping & Logistics expense or any other expenses directly linked to a position can be estimated and tracked easily with ContracERP. ContracERP defined all the possible expenses under the ‘Administration’ menu. It is also possible to add new expenses. All expenses are finally linked to a tracking number. Expenses can be estimated and can be connected to a tracking number at any stage. As an example, shipment expenses can be estimated at shipment level, warehouse expenses can be estimated at warehouse level, reprocessing expenses can be estimated at the reprocessing stage, clearing charges can be estimated at the clearing & Forwarding stage etc.

The system automatically sets estimates for seller bills & broker commissions. Other estimates have to enter by the users. Estimates can be in any currency.

When actual bills are received they are posted against the position. The estimate and/or actual bills are taken to determine the cost of a position. In case actual bills are not received or more bills are expected, system picks up estimates for costing. If not, the system picks up the actual for costing. However in case actual bills entered exceed the estimate figures, the system automatically picks actual bills instead of the estimates.

ContracERP automatically shift estimates and actual bills when an item moves from one position to another. As an example, let’s assume that shipment expense of USD 2000 estimated at shipment level for quantity 200 KG’s. Assume that 150 KG is shipped directly from the vessel to a customer and the remaining 50 KG is cleared to store. The auto transfer mechanism transfer shipment expenses proportionate to 50KG (which will be USD 500) and transfers that to the store level. The remaining expense USD 1500 will be attached with the stock sent to the customer. The same principle is used for auto transfer of actual. This facility helps the users to simply focus on posting expenses at the point of occurrence rather than searching for the current state of stock and quantity.

Gross/Net Conversion

In ContracERP quantities can be entered either in gross terms (including packing weight) or net terms (without packing weight). At the time of defining a commodity within ContracERP it must be specified as to how it should accept quantity (gross or net). ContracERP accepts quantity in these units only afterwards in all transaction entries for that commodity. Even though this appears to be a restriction, it is not, as ContracERP supports conversion from gross to net and vice-versa, on demand. The definitions of Packing Unit, Pack Tare Weight and Number of Packets are used to convert from one unit to the other. Usually, these conversions are used to determine the price per unit, as the price may be on gross or net. Entering quantities in the same unit in all the instances help users maintain an error free view on the stock position without worrying about whether they are brought on gross or net.

Managing various Units of Measure (UOM) and Packing Specifications

ContracERP supports multiple units of measure (examples are Kilograms, Pounds, Ounces, Liters, Gallons, etc.) and multiple packing units. For instance, ContracERP can accept purchase entries in Pounds and invoice the same stock in Kilograms automatically. ContracERP supports conversion between any number of units of measure defined within it (with exceptions like converting a Kilogram of Cashew to a Liter of Cashew) and various between any number of units of packing defined within it (such as 25 Kilogram bags to 10 Kilogram bags). The definition system is flexible enough to accommodate any sort of a packing unit. ContracERP provides the facility to define any packing or base unit. While defining these, the user must specify the rules of conversion. ContracERP follows these rules (like the conversion factor, etc.) while converting from one unit to any other unit.

The unit conversion functionality helps ContracERP users enter quantity in any unit and pricing details in any other unit.

Managing multiple Currencies

ContracERP has a multitude of currencies pre-defined within it and provides full support for working with any number of currencies. The only restriction is that one currency must be specified as the local currency. Users can add new currencies as and when required. ContracERP maintains separate books for accounts for each currency and therefore generates currency-wise Trial balance statements and can convert all other currencies to the local currency for consolidation, whenever required.

ContracERP supports transactions in any currency within the same Ledger account and avoids the need to define specific Ledgers per currency (as most systems demand). Since accounting transactions are grouped by currency, the currency-wise position of any account can be displayed instantly.

ContracERP also supports payment in any currency regardless of the fact that the original bill may be in another currency. Requisite accounting journals entries will be generated and posted automatically to the accounts ledgers to transfer equivalent portion in the original currency to the new currency to maintain the currency-wise trial balances.

ContracERP supports forward currency deals with options to determine whether a deal resulted in a profit or loss by comparing exchange rates at the time of maturity date and the time of finalising the deal.

Integration with Financial Accounting

All modules of ContracERP are tightly integrated, eliminating the need to enter the same information more than once anywhere. When any transaction that impacts accounts is entered, accounting vouchers are generated automatically. Supplier bills, sales invoices, claims, debit notes, credit notes, etc. update accounts automatically without the need for any manual intervention or authorization or re-entry to post these vouchers in the books of accounts.

ContracERP also provides stock valuation reports to help accountants finalise accounts. ContracERP provides several accounting functions including automatic financial year-end processing, thus streamlining accounting operations a great deal.

Stock Allocation & Sales Invoicing

Sales invoices are raised based on allocations made against sales installments.

Supports allocation directly from a vessel or from a warehouse. Such allocations are automatically taken away from the trading position reports, ensuring that the same material is not sold again.

Such allocations are made using the position manager function of ConTracERP and supports cross unit allocation and cross commodity (cross-substitution) allocation.

After allocations are made, selecting an allocation or set of allocations can generate invoices.

ConTracERP automatically generates invoices by gathering details required for invoicing and displaying the invoice on the screen, asking the user to type in data into a few fields such as payment terms, additional expenses, etc