Pierre, The approach actually worked, moreover I don't need separate accounts as I can associate the existing accounts of the parent company to other parties like wholesale and retail etc. As a test, I have placed a sales order with product GZ-2644 with 3 Qty for a wholesale party and quick ship entire order which resulted in 4 accounting transactions namely Sales Invoice, Sales Shipment, Incoming Payment & Payment Applied. To setup the income sheet for wholesale party, I manually created all the required transactions (I believe I just needed Sales Invoice & Sales Shipment transactions) and transaction details. That is it. I think I now need to write some code so that such transactions could be created automatically. Sorry, I tested this on my local copy so you may not be able to see it on demo :)
Your idea of setting up a separate instance for these external parties seems good but I believe the other approach which I used is easier. Let me know if you have any thoughts. Regards Vikas On May 28, 2012, at 12:51 PM, Vikas Mayur wrote: > Hi Pierre, > > Thanks for your help and your interest in the topic. I am currently testing > business transaction and their related accounting transactions with the OFBiz > demo data along with my custom party data of Wholesale, Retail channels. > > For instance when an invoice is captured for a sales order, you would have > various accounting transactions corresponding to this business transaction > (Invoice is being captured) like account receivables, COGS, discounts, > general sales etc. The transactions with OFBiz demo data are currently posted > to correct account but they are registered to 'Company' - the parent > organization. > > After doing some of these tests and how the transactions are posted, I think > I would need two things to be able to generate income sheet per distribution > channel. > > 1. Create separate revenue accounts for each distribution channels, they can > be setup as subsidiary ledger accounts similar to the existing demo data. For > example, the hierarchy of accounts for SALES would look like this. > > > > Revenue > > | > > Sales > > | > > ------------------------------------------------------------- > | > | | > General Sales General Sales Wholesale > General Sales Retail > > where 'General Sales' account transaction would be registered to 'Company' - > the parent organization. > > 2. Create duplicate accounting transactions for each revenue account in such > a manner that these transactions are registered to Wholesale (If the sale was > made to WholeSalers), Retail (If the sale was made to Retailers) etc. This > would require additional code so that system can lookup the 'Bill To > Customer' and automatically create all the required duplicate transactions. > > Once all the transactions are posted, I should be able to generate a > consolidated income sheet (this already works OOTB) for Company and separate > income sheet per distribution channel. > > Let me know if you see any issues with this approach. > > Regards > Vikas > > On May 25, 2012, at 7:24 PM, Pierre Smits wrote: > >> Vikas, >> >> If the distribution channels are truly independent organisation (meaning >> legally) you should set up for each one a different instance of OFBiz, >> whereby the distribution channels buys from the company and sells to their >> customers. Otherwise there might appear a conflict of interest. >> >> If otherwise the distribution channels are like daughter companies or >> subsidiaries (and accounting, et all is done by the company) you could >> (should?) link them in one instance to the company like departments and >> create separate costcenters for each. Subsequently create for each the set >> of accounts regarding turnover, discount and cogs and connect those to the >> costcenters. >> >> In order to capture for each you could then create a sales channel for each >> (catalog, categories and if nessesary stores) and apply for each >> distribution channel the various price, promotion and shipping rules in >> their respective sales channel. >> >> Finally, and this is something I haven't tested yet, you should map the >> earlier defined fico accounts to the categories in each sales channel in >> ProductCategoryGLAccount in FICO. See example below. >> >> https://demo-trunk.ofbiz.apache.org:8443/accounting/control/GlAccountAssignment?organizationPartyId=Company >> >> That should do the trick. But like I said, I haven't tested it yet. >> >> One thing I am also not certain about is how sales transactions will be >> handled by OFBiz when generated by a Sales Backoffice for each when the >> scenario described above is in place. >> >> Good luck with your endeavours and keep us posted how you will eventually >> get to your optimal solution. >> >> Regards, >> >> Pierre >> >> >> 2012/5/25 Vikas Mayur <[email protected]> >> >>> 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 >>>>> >>>>> >>>>> >>>>> >>> >>> >
