'Extension kits increase referencing abilities'

BANGALORE, INDIA: Extension screens can help sales teams simulate a production environment and predict costs of execution. The reader will appreciate that such simulations are not a part of the traditional ERP processes such as 'opportunity management' or 'order-to-cash processes'.

The simulations alluded to here are very preliminary in nature and help sales teams prepare bids. This should not be confused with other costing and pre-production tools that involve a greater level of execution detail.

At this level, the emphasis is not on the production process but on identification/fine tuning of the costs, with final view of coming up with a competing bid.

A component manufacture, for instance, has to reckon with designs, a broad bill of materials, labor considerations, fabrication considerations, taxes and other statutory implications. Overhead applications and contingencies would be a part of the cost structure as well.

Extension kits can deliver screens that can help users capture data, process costs and come up with a first cut execution cost budget. Lens help tools can help the simulator attach cost elements in a logical sequence.

Using tools such as states, it is possible to inhibit or project taxes that are applicable (usually associated with the intended delivery location). Inter-state transaction may fall under CST. Local transactions may attract VAT.

Finally, the purchaser may have to pay Octroi (as in Mumbai). So these “states” define which taxes may apply on the purchase side (handled in the input) or the sales side and appear in a particular order (as in Octroi being computed after basic value and VAT is added). States can be tuned to suit not just the location in question but also the item (goods) itself.

This kind of screen configuration is made possible as software understands CST, VAT etc as models. These models in turn attach themselves to simulations or for that matter, actual sales documents. Upon the user selecting a good or a delivery location or any such parameter, the correct set of taxes and sequence of applicability can present itself.

Workflow tools can set up the sequence of activities. Continuing with the sales simulation example, the user will appreciate that costing is likely to have versions. The question of who should be notified upon the completion of a version and what they should do upon notification — like if they are adding expert opinion (as in fine tune the quote) or are they approving authorities — may be answered by the workflow setup.

One more thing that workflow tools can address is they can insert this simulation into an appropriate stage between opportunity management and actual bid preparation. Workflow also ensures that the simulation inherits information from other parent screens and delivers information for decision making. Query tools can help prepare any adhoc reports that may be necessary.

Tools can thus play a vital role in bridging gaps between formal processes. It must be noted that many organizations use desktop productivity tools such as spread sheets for the purpose. But with the quality of tools that come with Cloud capabilities, this may be a thing of the past.

Shyaam Sunder K is the chief knowledge officer of Ramco Systems. The views and opinions expressed in this article are his own.