Hi mugunth,
Your problem is very easy to address indeed, I have come across this situation
when wanted to design ofbiz for retail implementation where you have multiple
stores and you pay for the electricity of multiple stores from HQ. You use cost
center to allocate costs to each store (so in your language each store will
have expense account) but the payment is done from HQ.
This kind of implementation can be done but require some screens designing in
ofbiz.
In your case each subsidiary will have its own organization code (it can be a
parent or a subsidiary the ofbiz model supports it). Then when you pay for the
expense the screen would split the payment and post it to respective expense
account of each subsidiary and then link the payment via organization code.
Then you can do report on each of the company for expense or from HQ you can
have a single report split by company.
e.g. Your electricity bill is US$ 1000 and you need to split it to 3
organizations. So the entry might be when you receive the bill (if you have the
details like each A = $300, B=$300, C=$400)
Dr. Utl. Expense A/C $300 (linked to organization A in ofbiz)
Dr. Utl. Expense A/C $300 (Linked to Organization B in ofbiz)
Dr. Utl. Expense A/C $400 (Linked to organization C in ofbiz)
Cr. AP by vendor - $1000
You can have a separate screen design for this to validate that expense A+B+C =
AP.
When you pay from HQ its simple
Dr. AP - $1000
Cr. Cash or bank -$1000
If you do the entry at the time of payment then its more simple
Dr. Utl. Expense A/C $300 (linked to organization A in ofbiz)
Dr. Utl. Expense A/C $300 (Linked to Organization B in ofbiz)
Dr. Utl. Expense A/C $400 (Linked to organization C in ofbiz)
Cr. Cash
I hope this is clear.
Thanks
With best regards,
Vikrant
-----Original Message-----
From: Mugunth Subramanian [mailto:[EMAIL PROTECTED]
Sent: Tuesday, January 08, 2008 10:48 PM
To: [email protected]
Subject: Re: how to handle cost-center in ofbiz
David E Jones wrote:
>
> Do you mean cost centers from an accounting perspective? If so they
> would be different Party records with the role Internal Organization,
> or perhaps even just different GlAccounts to categorize transaction
> entries.
>
Yes, I meant cost centers from an accounting perspective.
If we need to define the cost centers as different internal
organizations, is it possible to us to split a
transaction(payment/receipt) to various cost centers during transaction?
For example, consider I need make a payment for usage of a facility,
which is also shared by another cost center. While doing the payment, I
need to automatically split the payment to 2 accounts i.e. one in Cost
center A, and another cost center B as per some percentage which is preset.
Is it possible to do the above configuration using ofbiz ?
Thanks,
Mugunth
