Hello Deepak,
One we to resolve this to set up tax categories. Create two categories
each for 5% and 12.5% tax. Now add all the products with 5% VAT to 5%
category and 12.5% products to 12.5% tax category. Configuring your tax
authorities with the above tax categories.
Thanks,
Raj
On Monday 28 May 2012 09:00 PM, Deepak Agarwal wrote:
Vikas,
We are facing one problem with VAT and would like to know if you have
solved it with something.
We want to give 5% and 12.5% as VAT on different categories of products. We
want to set a selling price as in round figure but we want it to have VAT
included. We tried with different ways but end results are either ofbiz
changes the selling price or somehow while checking out the cart, the price
includes a VAT again.
Could you please tell us how can we set 5%(Laptop like products) and 12.5%
(Laptop Bag like products) at one place and mention just 2 prices to all
products (default price and list price) and still be able to get all VAT
calculations.
On Mon, May 28, 2012 at 8:34 PM, Vikas Mayur<[email protected]> wrote:
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
--
Thanks,
Deepak Agarwal,
