Introduction
Enterprise Resource Planning (ERP) systems have traditionally been the domain of large corporations with deep pockets and dedicated IT teams. Small and medium businesses (SMBs) — particularly in India's manufacturing sector — have long relied on spreadsheets, standalone billing software, and manual registers to manage their operations. This approach works until it doesn't: orders get missed, stock counts diverge from reality, GST returns become a monthly fire drill, and the owner spends evenings reconciling numbers instead of growing the business.
Udyamo ERP Lite was built to change that. It is an open-source, manufacturing-first ERP designed specifically for Indian SMBs with 20 to 500 employees. Built on modern technology (Ruby on Rails 8, PostgreSQL, Hotwire, and Tailwind CSS), it brings together manufacturing, inventory, accounting, sales, purchases, tax compliance, HR, and asset management into a single, integrated system.
What This Book Covers
This book serves two purposes:
-
ERP Education — Each chapter begins with the underlying concepts. Whether it is double-entry accounting, bill of materials, or GST input credit, you will understand the why before the how.
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Practical User Guide — Every concept is followed by step-by-step instructions for performing the task in Udyamo ERP Lite. Navigation paths, field descriptions, and workflow explanations are included throughout.
Who This Book Is For
- Business owners and directors who want to understand what ERP can do for their operations
- Operations and production managers who will use the manufacturing, inventory, and quality modules daily
- Accountants and finance staff responsible for invoicing, payments, GST returns, and financial reporting
- HR and admin personnel managing employees, payroll, and compliance
- IT administrators setting up users, roles, and permissions
How This Book Is Organized
The book is divided into 10 parts covering 50 chapters:
| Part | Topic | Chapters |
|---|---|---|
| Part 1 | Understanding ERP | Ch 1–5 |
| Part 2 | Inventory & Stock Management | Ch 6–11 |
| Part 3 | Manufacturing | Ch 12–18 |
| Part 4 | Sales & Customer Management | Ch 19–24 |
| Part 5 | Purchases & Vendor Management | Ch 25–30 |
| Part 6 | Accounting & Finance | Ch 31–35 |
| Part 7 | Tax & Compliance (India) | Ch 36–39 |
| Part 8 | HR & Payroll | Ch 40–42 |
| Part 9 | Asset Management | Ch 43–45 |
| Part 10 | Reports, Security & Administration | Ch 46–50 |
A Glossary at the end provides quick definitions for 80+ ERP, manufacturing, accounting, and Indian compliance terms.
Conventions Used in This Book
Throughout this book, you will encounter the following conventions:
- Navigation paths are written as Menu > Submenu > Action — for example, Inventory > Items > Add New
- Field names appear in bold — for example, fill in the Item Name field
- Button labels appear in bold — for example, click Save
- Tables describe form fields, their purpose, and expected values
- Screenshot placeholders indicate where the application interface would appear
Tip: Callout boxes like this provide practical advice and shortcuts.
Warning: Boxes like this highlight common mistakes and pitfalls to avoid.
Required: Boxes like this list prerequisites you must complete before proceeding.
Prerequisites
To follow along with the practical exercises in this book, you will need:
- A running instance of Udyamo ERP Lite (self-hosted or cloud)
- A modern web browser (Chrome, Firefox, Edge, or Safari)
- An account with Owner or Admin role for setup chapters
- Basic familiarity with web applications
Let's begin with understanding what ERP is and why your business needs it.