Nice Approach , Are you also handling tax related transactions so that actual or final revenue can be generated or determined which may include COGS,Discount,Tax(Sales Tax , CST , VAT etc).
Thanks Nandani On Mon, May 28, 2012 at 5:37 PM, Vikas Mayur <[email protected]> wrote: > 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 > >>>>> > >>>>> > >>>>> > >>>>> > >>> > >>> > > > >
