Hi Pierre, Thanks for your response. Yes, you are absolutely correct. I should be able to see the income sheet of the company (parent organization) as well as the income sheet per distribution channel.
Regards Vikas On May 25, 2012, at 2:36 PM, Pierre Smits wrote: > 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 >> >> >> >>
