Ledger accounts and ERP
Novulo has a portfolio of both software components for general ledger (“the books”, Dutch: Grootboekadministratie), as well as virtually all kinds of other business software related to the general ledger. These include Inventory Control, Invoicing, Sales and purchase orders, etc.
Depending on the definitions and words, the non-ledger ERP can be described as ‘subsidiary ledger’ (Dutch: subadministratie).
Novulo design principles for ledger and ERP
In the Novulo core, the Ledger and the ERP components are separated and connected through connecting components.
In the way the Novulo components are designed, there is an explicit Transfer-process to transfer data from the subsidiary ledger to the ledger account components. Data entry for all inputs that can be found in the Subsidiary ledger, always starts in this part of the software and will be transferred to the ledger afterwards.
This can be instant (in the same data process) and sometimes with a slight delay in a background process.
Data types and components for Ledger and ERP
To give some context, for the core functionality of ledger and ERP, there are software components for Ledger, for ERP, and to connect those with each other.
Typical Ledger / Finance concepts and components
Typical data types for the ledger include:
- Administrations
- Journals
- Journal Entries
- Journal Entry Lines
- Ledger accounts
- Cost centers
Most of these components originate from M3009 and additions like M6669 or M3856.
Typical ERP concepts and components
Typical data types for the ERP include:
- Sales
- Purchases
- Invoices
- Deliveries
- Stock movements
- Payments (Transactions in Novulo components).
These software components originate from M3445, M3039, M3026, M3338, M3344 and M3161 and have dozens of additional, optional components to link them to each other or to add additional functionalities
Typical connections between ERP and Ledger
Connecting ERP and ledger allows for automatic journal entries - a core reason for integrated ERP and Finance.
For example:
- Final sales invoices create entries in sales journals and can make entries on accounts receivable
- Incoming purchase invoices create entries in purchase accounts and can make entries on accounts payable
- Stock movements make entries on the inventory journals
Etc.
To connect these, connector components are available. In a few cases, there are various implementations depending on your business needs, for example:
- M3608 allows you to transfer invoices and stock movements to support an international retail/wholesale set-up
- M3254 allows you to transfer invoices in a typical practice for insurance companies
- M3234 allows you to connect your expected payments, generated from sales and purchase invoices, to the ledger accounting
Always in sync
As a general rule, the values between the ledger and subsidiary ledger must always be the same.
Technically, there is one specific note here: in our philosophy, we do allow delayed transfer processes. In various large applications, transferring data from the subsidiary ledger to the ledger account is being performed by background processes that run with a typical average delay of 15 minutes. This allows for load balancing on the server and a faster user experience.