Yes, I need to keep all the related transactions so that income sheet reflect the correct net income. For all the sales tax (sales taxes could be at country/state/county/city level) & COGS (for different items) transaction entry detail records, I just created one detail record for each.
Regards Vikas On May 28, 2012, at 7:46 PM, Nandani Aggarwal wrote: > 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 >>>>>>> >>>>>>> >>>>>>> >>>>>>> >>>>> >>>>> >>> >> >>
