Online Marketplace

Overview

The client is an Indian online marketplace and classified advertising company, based in Bangalore. It has listings in over 1000 cities in India in categories such as mobile phones, household goods, cars, real estate, jobs, services and education.

Business Challenges

The client was using several independent systems for their various day to day activities. Financial aspects were entered manually in a separate ERP package

Several activities like marketplace commission, bank loan and repayment and intercompany loans were handled manually

The client wanted us to integrate all their independent systems into one ERP solution and also wanted us to customize the actvities which were handled manually

Solutions We Provided

We integrated all their systems and brought the financial aspects into Oracle NetSuite.

We provided them solutions for their manual activities and customized them so that these can be used in NetSuite.

Following are some of them:

Bank Loan and Repayment: It is made up in two parts – loan amount deposit and repayment. The principal amount and the interest on the principal amount are divided across each month in the loan tenure. The EMI is always paid to the bank or lender on a fixed date each month until the total due amount is paid off during the tenure. This end to end calculation is fully automated.

Intercompany Loan: This covers oans made from one entity of a business group to another. It is divided in three parts – Loan Paid, Loan Received and Interest Payable/Receivable calculation. Loan received operation is fully automated based on the loan payment. Automatically logical interest calculation can be performed based on the future scenario.

Intercompany TradeInvoice date more than 180 days: This refers to the operation of purchase & sale of goods/service within two entities of a business group. It is segregated in three parts – procure to pay, order to cash and transfer the balance to loan. P2P & O2C activities are same as regular intercompany transactions. Conversion into loan and interest calculation can be executed by carried out by clicking a single button, which is purely customized.

Marketplace Commission Calculation: It is a fully customized development to fulfill e-commerce business requirements. End to end activities are locked up in NetSuite and Item specific commission calculation is automated along with tax implications. Item category wise commission percentage is a predefined process for a particular period.

Margin Calculation: It is a tricky operation in e-commerce platform though we have developed and designed it in a simple way. Based on purchase /sales data,the system auto-calculates the margin value and creates accurate invoice along with tax implications.

Revenue Recognition: We have configured and launched three types of Revenue Recognition process in the Accounts Receivable module simultaneously. The processes are Period based, Consumption based and 100% upfront revenue.

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