Hi Vikas, Just to get a greater understanding of the challenge you're facing, I am understanding that the distribution channels operate as independent organisations and not as internal departments. And that the distributors, wholesales and retailers are associated to the distribution channels. And that sales is done thru the distribution channels, but that the transactions of the sale need to be registered with the company combined with commission calculations per distribution channel.
Am I correct in assuming that's what you're saying? Regards, Pierre 2012/5/25 Vikas Mayur <[email protected]> > Hi, > > I am working for a customer and he is looking to setup a chart of accounts > for his organization. I have mentioned below a brief description of the > business of this customer, his requirements and a possible solution that I > think would meet his needs. Please take a look and also through the Q's > below :), if you know anything then let me know. Thanks in advance !!! > > Business Overview: > A parent organization with several divisions like R&D, Sales & Marketing, > Operations, Administration etc. and employees. The company (parent > organization) only sell its products through a number of distribution > channels (they also call them as revenue channels & profit centers) like > wholesale, distributor. retail etc. The company will give them a certain > commission (as per the agreement) on every sale. The distribution channels > are not the divisions of the company and does not have any employees > either. The company will have a number of warehouses (probably shared among > the distribution channels) to fulfill the orders. > > Requirement: > The company need to generate a separate income sheet for each distribution > channels so that they know the net income by each channel. They also need a > consolidated GL totals (generate a consolidated income statement) and a > balance sheet report for the company. > > Solution: > Distribution Channel Setup > The distribution channels are organizations (although not internal to the > Company) and will be setup as party group in the system. For example there > will be party group for wholesale, distributor & retail each. There would > be a number of wholesalers, distributors and retailers who will sell the > products of the company and they will also be setup as party group with a > party relationship to wholesale, distributor & retail party group > respectively. > GL Account & Chart of Accounts Setup > I looked through the demo GL setup and Chart of Accounts template data in > OFBiz, was very helpful. I know that an account can be used by one or more > internal organization but have doubts about how to associate the account > and how the transaction would be posted to the correct account. Sorry, > haven't looked through the code in detail. > > There will be number of accounts but lets say we have three accounts, 3000 > - Sales, 3010 - Discount on Sale, 3020 - COGS. The net income will be > [Total of Sales - (Total Discount on Sale + Total COGS)]. > > Q1. Do I need to associate the above accounts to the parent company OR to > each distribution channel OR both? Default mappings? > Q2. Do I need separate accounts for the parent company and each > distribution channels? Lets say the 4 different Sales account for the > parent and three distribution channels? Don't think so. > Q3. Any other thing I should be concerned about, like the shared warehouse > by all the distribution channels? > > Regards > Vikas > > > >
