Sales Module Study & Recommendations

Study Coverage Surabaya S&D operation Dispatches from Gudang Branches Stock Transfer to Jakarta Exports Taxation Jakarta S&D operation Dispatches from Gudang Branches Customer AGA Stock Transfers to Surabaya

Current Model Sales to Branches – S&D Sby Form Order - Branches Receive Form Order Invoice/Delivery Order Shipment Advice To Branch Branch S&D SBY Stock Gudang SBY Taxation SBY y n Full-filment y n Order Cancelled Inform Marketing A A Dispatch Surat Jalan Copy Surat Jalan Material Receipt Confirmation MIS - SBY A Prepare Tax InvoiceGiven to Customer A Customer Balance & Accounting A Invoice Copy Legend Dept Manual Automated

Current Model Sales to Branches – S&D Jakarta Form Order - Branches Receive Form Order Invoice/Delivery Order Shipment Advice Branch S&D JKT Stock Gudang JKT S&D SBY Gudang SBY Taxation SBY y n Form Order - SOTB Full-filment yn Order Cancelled Receive Form Order SOTB Stock Full-filment n Order Cancelled y n y Inform Marketing Dispatch Surat Jalan Copy Surat Jalan Material Receipt Copy SOTB A A Dispatch Surat Jalan Shipment Advice Copy Surat Jalan Material Receipt Confirmation MIS - SBY A Prepare Tax InvoiceGiven to Customer A Customer Balance & Accounting A Invoice Copy B B B Legend Dept Manual Automated

Current Model Sales to Customers – Media (AGA) Customer Order Receive Customer Order Customer MKTG/ Sales Support JKT Gudang JKT Taxation JKT Material Receipt Signed Surat Jalan MIS - SBY Unit 1A AGA Prepare Production Plan Receive Production Plan Prepare Material Requisition Material Requisition A A Stock SOTB Surat Jalan Receipt Note y n B B SOTB Mtl. Request Surat Jalan Gudang A Mtl. Receipt Issue to Production Recording/Loading /Packing Dispatch Instruction C C Surat Jalan Dispatch to Customer D D Acknowledgement Invoice D Collection JKT E E Receipt Note Collection List Customer Acknowledgement Tax Invoice Payment Receipt Voucher Cashier JKT Record Collection Accounting Record Collection Legend Dept Manual Automated

Current Model Sales to Customers – Media Customer Order Receive Customer Order Customer MKTG/ Sales Support JKT Gudang JKT Taxation JKT Material Receipt Signed Surat Jalan MIS - SBY Unit 1A A Stock Surat Jalan y n B B SOTB Mtl. Request Surat Jalan Gudang A Mtl. Receipt Delivery Order Dispatch to Customer D D Acknowledgement Invoice D Collection JKT E E Receipt Note Collection List Customer Acknowledgement Tax Invoice Payment Receipt Voucher Cashier JKT Record Collection Accounting Record Collection Legend Dept Manual Automated A

Current Model Transfers SBY to JKT Material Request From MKTG - JKT SOTB by the Unit Surat Jalan by Gudang - A Unit 1A Receipt at Jakarta Gudang Form Order from S&D JKT Form Order Conformation by S&D - SBY Prepare SOTB Surat Jalan Unit 2A/2B & 3 Shipment Advise Receipt at Jakarta Gudang

Scope of Sales Module Implementation – Stage I Units Covered Unit 1A, 1B, 2A, 2B, 3 & Unit 5 FG Stock Monitoring at all Stages (Unit/Gudang/In-transit) Sales Invoicing Print Commercial & Tax Invoice from MFG/PRO Record Collection Monitor Customer Outstanding

Transaction to be considered Capture Daily Production – only quantity Record Transfer of Goods from Unit to Gudang in Sby Record Transfer of Goods from Gudang Sby to Gudang Jkt Record Transfer of Goods from Gudang to AGA Record Sales Sby Record Sales Jkt Record Sales Return

Current Accounting Procedure ProcessSales Local SBY Sales Local JKT Local Media JKT Export InvoicingDaily Tax InvoiceSBY- Daily SBY- Daily JKT- Daily -- Closing Stock*On-lineManual Record Gudang/AGA Stock Report Gudang Sales Accounting Monthly *Total Stock

Current Business Rule Sales Local - Unit 2A,2B & 3 DO & Invoice prepared by S&D prior to Shipment Invoice split into multiple shipments (Surat Jalan) Price inclusive of VAT & Luxury Tax Tax Invoice prepared separately with details on Tax break-up Delivery charges accounted separately Shipment Advise given to Branches prior to shipment Multiple prices applicable for one item & one branch/region Price List controlled by Marketing Jakarta Dispatches made from Gudang SBY & Gudang JKT

Current Business Rule Sales Local - Media DO & Invoice prepared by Sales Support 1:1 relation between Invoice & Shipment (Surat Jalan) Price inclusive of VAT & Luxury Tax (if applicable) Tax Invoice prepared separately with details on Tax break-up Delivery charges accounted separately Price decided by Marketing All dispatches are routed through Gudang - Jakarta

Current Systems (Applications) Sales Local S&D - SurabayaWang System Gudang Local – Surabaya Wang System Gudang Export – Surabaya -- Sales Local S&D – JakartaStand Alone Application – PCBA Sales & Collection Local Media – Jakarta Application with Invoicing & Receivables functionality AGAStand Alone Application - Gudang Gudang JakartaStand Alone Application – Gudang CashierStand Alone Application – KASIR Accounting – MISWang System

Bottle necks System/Infrastructure De-centralized Sales activity Transactions recorded in multiple system Non-availability of interface from the existing system to MFG/PRO Non-availability of support for the existing system Business Rule VAT / Luxury Tax added to the List Price Invoice prepared prior to Shipment One to many relation between Invoice & Dispatches Lack of standard rule for applying Prices

Options – Models Surabaya Record Daily Production Extend MFG/PRO Sales & Invoicing module to S&D and Gudang Record Customer Orders Daily Shipment & Invoicing Stock Transfers Reporting Jakarta – Model I Interface current system to MFG/PRO (Downloads/Uploads) Record Customer Orders Shipment & Invoicing Stock transfers Collection Payments

Options – Models… No impact to the existing process System familiarity to users In-consistency in data Verify data between two systems Interface all the system with MFG/PRO No change to the existing processes/activities AdvantagesDisadvantages Model I

Options – Models… Jakarta – Model II Connect PEC Jakarta & Gudang Jakarta to Surabaya through Virtual Private Network (VPN) Users connect to MFG/PRO server and carry out transactions Advantages Disadvantages On-Line information Transaction captured in single system Centrally Controlled Master One model for S&D operation Extension of ERP system for Jakarta operation Affects transaction processing at Jakarta due to connectivity failure Slower response Database accessed through the Internet

Connectivity Mode – Model II

Required Infrastructure Server / Client PC Pentium III, 700Mhz, 20GB HDD, 256 MB RAM, 2 Ethernet Cards Pentium II / III, 500Mhz, 128 MB RAM Modem Standard Internet Dial up Modem Software ( Server / Client) Microsoft Windows 2000 Server (Available) Microsoft Windows 98 / ME / 2000 / XP ( Available) Connectivity Leased Line Link 64Kbps (Available) Leased Line Link 128Kbps (Available) Internet Dial up connections

Security for VPN Link Data transfer using encrypted models. Client connectivity to the server by 3 phase authentication I Phase Authentication at VPN Server II Phase Authentication at IP Address release III Phase Authentication at ERP Server Monitoring of client connectivity at Server

To be Model (Brief) S&D / Sales Support Input Order Order Allocation Shipment Advise, Invoice Print (After shipment) Gudang Treated as Locations under the respective Sites Attached to the respective sites Will have access to only specific transactions Shipment process Accounting Invoices will be accounted into the respective sites entity (after shipment process)

To be Model (Brief) Inventory Location wise stock maintained In-transit stock recorded under a separate location for monitoring purposes Collection Customer balance maintained under the respective entity Will have access to only specific account codes Will have access to more than one entity Cashier Record payment transactions Access only AP module

Way Forward….. Go-ahead from the Management Proof of concept for the connectivity (Trial run) Brief the model to S&D, Marketing & Accounting Departments Freeze the To-Be Model Prepare required data for Go-Live User Training Go-Live Thank You